WEDNESDAY, 25 JUNE 2008
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          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
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The Council met at 14:08.

The House Chairperson Mr T S Setona took the Chair and requested members to observe a moment of silence for prayers or meditation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

            PRESIDENT ROBERT MUGABE’S REGIME ILLEGITIMATE

                         (Draft Resolution)

Mr A WATSON: Hon Chairperson, on behalf of the DA, I hereby move without notice:

That the Council –

 1) notes with disgust and concern ... [Interjections.]

I’ll try again, Chair. The staff must respect the speakers, please.

The HOUSE CHAIRPERSON (Mr T S Setona): Order, please! Hon Watson, I think I have a duty to protect staff. Staff do not impose themselves on Members of Parliament. I think it’s unfortunate for you to say that staff must respect hon members. Could you proceed, please.

Mr A WATSON: I’ll start all over again, hon Chairperson. On behalf of the DA, I hereby move without notice:

That the Council –

 1) notes with disgust and concern that the violent intimidation
    campaign that has forced the MDC to withdraw from the presidential
    run-off election in Zimbabwe was no less than a coup, effectively
    masterminded by Robert Mugabe;


 2) further notes that Mugabe has no legal mandate from the Zimbabwean
    people to govern, but has made it clear that he will cling to power
    by any means necessary;

 3) notes that he will not respond positively either to mediation or
    quiet diplomacy;

 4) calls on President Thabo Mbeki to immediately, publicly acknowledge
    that the Mugabe regime in Zimbabwe is illegal and illegitimate;

 5) further calls on South Africa to:

      a) sever all diplomatic ties with Zimbabwe and withdraw all
         diplomatic representatives;


      b) impose smart sanctions on the Zanu-PF elite, including travel
         bans to South Africa and the freezing of all South African
         assets linked to Mugabe and the Zanu-PF;

    c) lobby for the suspension of Zimbabwe ...

[Time expired.]

The HOUSE CHAIRPERSON (Mr T S Setona): Is there any objection to the motion? [Interjections.] In the light of the objection … Order, hon Tolo, I usually don’t call members by their names. In the light of the objection the motion may not be proceeded with. The motion without notice will now become a notice of a motion. Are there any further motions without notice? Hon Tau.

               DEATH OF C M GOEIEMAN’S YOUNGER SISTER

                         (Draft Resolution)

Mr R J TAU: Chairperson, I hereby move without notice:

That the Council –

 1) notes with profound sadness that the hon C M Goeieman has lost his
    younger sister, who will be laid to rest on Saturday, 28 June 2008,
    in Galeshewe in Kimberley; and


 2) takes this opportunity to convey its condolences to the Goeieman
    family and wishes them strength in this trying time.

Motion agreed to in accordance with section 65 of the Constitution.

         DELEGATION TO OBSERVE RUN-OFF ELECTIONS IN ZIMBABWE

                         (Draft Resolution)

The ACTING CHIEF WHIP OF THE COUNCIL: Chair, I move on behalf of the Chief Whip of the Council:

That the Council, noting that Zimbabwe is holding a Presidential run-off election on 27 June 2008 and in pursuance of the request from the Ministry of Foreign Affairs, subject to the concurrence of the National Assembly, resolves that –

(1) a twenty-member multiparty delegation of the South African Parliament observe these elections;

(2) the delegation forms part of the SADC observer mission;

(3) the delegation observes the campaign in the run-up to the elections, the casting of votes and subsequently the counting of the votes; and

(4) the delegation presents the mission’s report to Parliament on its return.

The HOUSE CHAIRPERSON (Mr T S Setona): Hon members, as there is no speakers’ list, only delegation heads or members authorised to vote on behalf of provinces will participate in the voting.

Question put: That the motion be agreed to.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Motion agreed to in accordance with section 65 of the Constitution.

                         SOCIAL HOUSING BILL


            (Consideration of Bill and of Report thereon)

The MINISTER OF HOUSING: Chairperson, thank you very much for that warm welcome to the House. The Social Housing Bill that we bring before you is long overdue. Social housing is state-subsidised rental housing for medium and low-income people. It services groups who cannot afford to buy a house and groups that are in transition, either geographically or in their life cycle, for example, the young, the upwardly or downwardly mobile, single parents with children, especially women or specific high priority target groups, such as pensioners or physically challenged people.

In our case, social housing specifically targets people who would normally not qualify for state-subsidised housing either because their income bracket is above that, which is normal, or because they previously benefited from subsidised housing.

Social housing has been the most common and successful form of government housing in Europe and the United Kingdom, and is recognised as an important form of government intervention in many other countries.

In a country such as The Netherlands, it constitutes up to 50% of the total housing stock and 80% of rental stock. Support for the rental housing sector has been strong internationally in recognition of the fact that rental housing is a necessary part of any healthy housing sector. In South Africa, social housing has been identified as a key area in government’s attempt to create integrated human settlements.

The events of the past month have emphasised to us just how important this form of access to housing is. Foreign nationals who come into our country and settle in informal settlements have no hope whatsoever of ever acquiring affordable houses, either through government subsidy schemes, or through the banks, or through the normal sector rental scheme. If we want to be able to overcome this problem, we have to ensure that we provide access for these people to this sector, by increasing our affordable rental stock.

At our recent Minmec we took a conscious decision that we would prioritise and ring-fence the funding for this segment of our work. The trade union movement has been particularly keen to see us move in this direction, because the bulk of their workforce is in dire need of this form of housing, by virtue of their being a highly mobile workforce.

The most significant aspect of the sector is that the majority of its developments are in central city areas, and is thus the best example of a government-funded programme which has reversed the apartheid city.

Over the years, the social housing sector has grown and has been the beneficiary of significant funding from government. It is, however, characterised by a patchwork of policies, funding and institutions that do not adequately support its work and growth. For these reasons, the Department of Housing has now taken steps to assist with governance in this area and has put in place regulatory processes through the promulgation of the Social Housing Bill and the establishment of the Social Housing Regulatory Authority, all framed by the social housing policy.

Therefore the objectives of the Social Housing Bill being tabled here are to establish and consolidate general definitions and principles, which can then be recognised as the authoritative guidelines for the sector as a whole; to establish the social housing regulator; and to provide for the recognition and accreditation of social housing institutions.

The Bill provides for specific functions and responsibilities for all three spheres of government. It requires of us as the national government to create the kind of legislative, financial and policy and institutional frameworks that will enable the sector to grow, whilst provincial governments are given responsibilities to approve and administer grant funds and monitor project level compliance. Local government, on the other hand, is required to ensure access to land, infrastructure and services as well as initiating the identification and restructuring of zones.

The Bill’s major purpose, therefore, is the establishment of the Social Housing Regulatory Authority, the body that, in accordance with the Public Finance Management Act, PFMA, would, amongst other things, be responsible for accrediting social housing institutions, administer and disburse capital and institutional grants, as well as conduct compliance monitoring to norms and standards by the sector. It will have powers to intervene to resolve maladministration issues and take remedial steps where necessary.

These interventions have been necessitated by the recognition that the issues of corporate governance are presently handled poorly and, therefore, affect the overall delivery of our social housing institutions. It is, therefore, necessary that institutions within the sector are geared towards better managing their portfolios in order to provide a better service to our people. The business case for the envisaged regulatory authority has been finalised and approved to enable speedy implementation.

The Bill was submitted to Cabinet during October 2006 for approval after which process it was published in the Government Gazette for public comment. Its consultation process included the setting up of a task team consisting of provincial departments, metros and all other stakeholders, who all participated in the preparation of the official policy and guidelines that culminated in the Bill that we have with us today.

In addition, consultations have also taken place with the Social Housing Foundation, National Treasury, the Department of Public Service and Administration, the National Housing Finance Corporation, Dutch, Canadian and United Kingdom social housing experts, and the National Association of Social Housing Organisations. Further consultations were held with 19 other institutions, including the Development Bank of Southern Africa and a number of other very important stakeholders.

I bring to you, therefore, the final product out of this very extensive consultation. I would like, therefore, to commend the Bill, which is now truly overdue, to the House for approval. I thank you. [Applause.]

Mr A WATSON: Chairperson, hon Minister, hon members, my colleague in the National Assembly, the hon Butch Steyn, made the point that the previous racial boundaries of the apartheid regime are no longer clear, as they have largely been replaced by current-day wealth boundaries. The economic upswing that we have experienced over the past number of years has benefited many thousands of people but it also has its downside.

Properties of all kinds have escalated beyond the wildest dreams of most developers, and those who have invested in property timeously will have benefited handsomely. They will argue that they have invested wisely and that is possibly true. However, those who had insufficient means, who constitute the vast majority of our population, were unable to apply their wisdom even if they wanted to. Let us be quite frank about this: The empowerment programme of government has benefited only a select group of the population. Only those with the right family connections, the right contacts and the right party affiliations have become extremely rich, whilst the poor, by and large, have become poorer.

Property and, particularly, a choice of house is therefore still out of the reach of the masses, and any measure to address this crying need must be welcome. The proposed restructuring zones envisaged in this Bill, if properly administered and implemented, will create the possibility of bringing lower-income people into the areas where there are jobs and will provide them with accommodation, which, previously, they would have been unable to afford. This is truly a noble concept, but the envisaged Social Housing Regulatory Authority will have their job cut out for them in order to maintain a sustainable balance in this regard.

You simply cannot uplift people by impoverishing those with means who surround them. That is an outdated communistic concept that history has effectively rejected. Only a limited number of people in the world with established power bases still believe that is possible. Unfortunately, we still have some of those in South Africa and even amongst us here in the House who preach the principle but only when it would not endanger their own assets and comfort zone.

When you have one deflated wheel on your car, you do not deflate the other three to level the car. You inflate the one tyre in order to lift it to the level of the other three wheels. I am, however, sure that the long-term objectives, as contained in the policy document of the Bill, are aimed at putting into place a process that is highly regulated and progressive.

My province, Mpumalanga, has conferred a mandate on our delegation to support this Bill and my party, the DA, likewise supports the Bill. One small item, however, concerns me somewhat. The select committee, supported by the provinces, inserted a small addition, which ensures that much needed and laudable recognition is also extended to child-headed households.

In our present situation, as a country suffering under the threat of the dreaded HIV/Aids disease, many child-headed households have surfaced and emerged, and if we really are a caring society, we must look after them and all policies must provide for them. My problem is that rental of whatever nature implies that contracts must be entered into and, by law, hon Minister, minors are not permitted to enter into contracts.

I do not believe that we considered this unintended potential problem properly, but I am sure that the legal advisers would have given the matter the consideration it deserves and I trust that the Minister will, in her reply, give us the necessary assurance. I thank you. [Applause.]

Mr R J TAU: Chairperson, I think I cannot disagree with the hon Watson when he says that those who invested early are those who are reaping the benefits. The only problem is that this does not go further to say who in actual fact had the opportunity to benefit and to invest at the time, because the majority of our people were excluded. Property in itself or investment in property was something strange to our people. That is why they could not invest in property. As a result, we need to appreciate the fact that the very same capitalist ideology that you seek to present in this House is the one that has disadvantaged the majority of our people from the mainstream of the economy. [Interjections.] Of course, a few have benefited because by its very nature it creates an environment in which the minority benefits at the expense of the majority. This means that by its very nature it is to the disadvantage of the majority, even in respect of acquiring knowledge on how to access some of the strategic economic instruments and so forth. These are the very same liberal policies that your party advances, which seek to disadvantage our people further.

Therefore, hon Ministers and hon Watson, I think there is one thing we tend to forget sometimes: If you look at the very same property boom or access to property in our country, the time will come when you will have to be honest to say that, even until today, those who have access to property from amongst the majority, the middle class, are highly indebted. Who are they indebted to? They are indebted to the very same policies and systems that your party advances. Consistent with the strategic objectives of the ANC, we seek to build a South Africa that is a nonracial, nonsexist and prosperous one. The Social Housing Bill, which is the Bill we are deliberating on today, seeks to do exactly that.

For a very long time, since the dawn of our democracy, our government has started grappling with how best to integrate our communities and ensure that our people are housed at close proximity to economic activities and development. We will note that the advent of our democracy presented a lot of positive development on the social front. It provided those particular benefits to many people who, for the past decade, were disadvantaged or left at the periphery of the economy. As a result, due to poverty and lack of job opportunities, we observed a lot of movement of people into cities seeking better opportunities in particular jobs in order to invest in property.

For obvious reasons, leaving rural areas for urban areas presented serious challenges to the government, in particular, with regard to the provision of housing. Notwithstanding other factors, this movement of our people to economic centres gave rise to the mushrooming of informal settlements and a demand for rental housing stock, hence the many backyard dwellers in Soweto, Galeshewe, Port Elizabeth and many other places in our country. We have also noted the rental of shacks, of course, which our people see as an investment in Gugulethu, Joe Slovo, Phuthanang and many other informal areas in our country.

Noting that our housing policy makes provision for social housing, we saw our government responding to this challenge by piloting a number of social housing projects, especially in Gauteng and in other places in the country of course. We also saw the implementation of social housing projects through international donor funding. While the objectives were good, this was too fragmented and not properly guided through a legislative framework.

We will remember that not so long ago, in 2001, the President of the Republic made an announcement to the effect that the ANC-led government is committed towards: the regeneration of inner cities in the country; the development of well-located land with the intention of broadening the current housing assistance programme; and accommodating higher density development and addressing the increasing demand for rental housing in our urban areas. This commitment should also be seen and read in the context of our Polokwane resolution of creating sustainable human settlement. This must also be guided by the principles of restoring and furthering human dignity and citizenship, integrated development planning and funding alignment, inner city regeneration and rental housing provision.

The importance of this Bill is beyond our imagination. It does not only seek to regulate or to ensure that government plays its role in as far as capital injection is concerned with regard to the provision of housing. To us as the ANC and as the committee, this piece of legislation has far- reaching objectives which are very, very progressive. Taking into account what I said at the beginning, it is worth noting that this Bill seeks to do exactly that.

In terms of the content and context of the Bill, there will be a total reorientation, hon Watson, in respect of human settlement in the sense that we shall, through this experience, develop a truly nonracial and nonsexist South Africa. At an ideological level, we shall experience a different orientation with regard to our people.

The Bill seeks to inculcate a very important aspect of co-operative ownership and responsibility for our people. Through social housing projects, our people shall not only benefit from the low rental opportunity, but most importantly also from the capacity and the ability to live together and share through the spirit of ubuntu, and not be self- centred. In short, this Bill provides for a co-operative housing option for low-income earners at a level of scale and built form which requires institutionalised management, and which is provided by accredited social housing institutions or other delivery agents in accredited housing projects in designated restructuring zones.

Hon Minister, during deliberations on this Bill at committee level and in provinces’ public hearings, our people once more re-emphasised the need for designated zones not to be far from their workplaces. The matter was raised against the backdrop of the role municipalities will, of course, play in the implementation of this Bill. We will note that while we resolve to house our people near their places of work, some municipalities still zone land for human settlement in a manner that is not consistent with our own objectives.

One other matter that came out very sharply during the negotiating stage of the Bill is that many provinces raised the role of the private sector. The matter was raised in the context that while we know that the target population is the low-income earners and the fact that they do not rent to buy, which we understand and agree with, the role of the private sector does not come out clearly. Provinces were quite worried in the sense that once the private sector invests money, driven by its capitalist values in its nature, it wants a return. Therefore, the provinces want to know what the role of the private sector is going to be with regard to injecting its money in this particular issue, and what would, therefore, be the balance between profit-driven investment and social-driven investment. I think provinces saw the need for clarity on this particular matter because if not they might run the risk of the private sector taking away the very same gains that have been achieved thus far. To achieve its housing objectives and to provide coherence to the social housing sector, our government will continue to pursue the establishment of regulations and the maintenance of social housing institutions through a structured and dedicated policy programme. Therefore, members would note that the Bill encapsulates the proposed range of interventions to stimulate the development of this sector. The overall purpose of the policy is to establish a mechanism in terms of which the people’s glorious movement-led government can create an enabling environment for the development, delivery and maintenance of the social housing sector required to deliver sustainable human settlement at a large scale in “Mzansi”.

We take note of the fact that, as a committee, we will continue to support any programme that seeks to harness, mobilise and galvanise the collective effort of our people. We will support any programme that seeks to teach our people that togetherness is the only way in which they will be able to prosper in life. We will discourage any form that seeks to build in an element of individualism that has no bearing on the social and economic development of our people. Thank you very much, Chairperson. [Time expired.]

Ms H F MATLANYANE: Chairperson, hon members, comrades and compatriots, hon Minister and departmental officials …

Nna ke ngwana wa gaMasemola. Ke goletše Atteridgeville, ka ntlong ya go rentiwa, yeo motho a bego a e kolota bophelo bja gagwe ka moka, go bile go se seo a kago se dira go e tlogela. Go be go se monyetla wa gore baleloko leno ba ka go etela. Ge gona ba ka tla, pele ga ge letšatši le dikela, maphodisa a tla be a tsene a tlile go ba swara. Gape pele ga ge letšatši le dikela lapa le tla be le nyakilwe dipasa le dilo tšohle. O be o tlamega go dula fase wa ipotšiša gore gabotse re sentše eng rena bana ba thari ye ntsho le gore re tlile go hlaka go fihla neng.

Karabo e be e no ba gore re sa tlile go hlaka go fihla ge ANC e tšeya marapo a pušo. Mokgatlo wo wa batho ke wona o kago tliša diphetogo tšeo di nyakegago. Wona mokgatlo wo wa go phekaganela batho o tla dira gore batho ka moka ba ipethe difega ba re aowa, ye ke ya ka. Yo a nyakago go tloga gae gore a batamele mošomo gore bana ba gagwe ba hwetše sekolo ka bokgauswi le gore a kgone go iphediša bokane, o tla tloga lokeišeneng gomme a nyaka ntlo mo a kago tšwe a dutše, moo a tlago re go fetša mošomo a ya a naba maoto gagwe, a iketle. (Translation of Sepedi paragraphs follows.)

[I am originally from gaMasemola. I grew up in a rental house at Atteridgeville. This is a type of house a person would be paying for his or her entire life without any option of moving out. Our relatives were not allowed to visit us. When they did so, the police would come and arrest them before sunset. The family members would also be required to produce identity documents and everything. One would be forced to sit down and ask oneself questions such as, where did we go wrong as black people and till when will we suffer? The only answer was that this will continue until the ANC starts governing. This people’s party is the one that can bring about the necessary changes. This party which protects people will make them proud and instil in them a sense of belonging. Those who want to move closer to their workplaces, bring their children nearer to schools as well as live a better life, will leave the township and acquire houses where they will settle and relax when their working days are over.]

Chairperson, the social housing sector has not been regulated for quite a long time by any legislation, which impacted negatively on the growth in the sector. The Social Housing Bill was developed and introduced to provide a legal framework for the regulation of the social housing sector.

The President announced in 2001 the government’s commitment towards the regeneration of the inner cities of our country, the development of well- located land and the intention to broaden the current housing assistance programmes to accommodate higher density development and to address the increasing demand for rental housing in urban areas.

In 2004, the President referred to a Comprehensive Housing Programme which deals with human settlement and social infrastructure, including rental housing stock for the poor, and the broader question of special settlement patterns. An implication of this is our efforts to build a nonracial society. This is exactly what the Minister said.

Re nyaka go bona bana ba gaborena, bommagorena, batswala ba rena ba kgona go ba le go lokologa, ba iketlile ba dule mo ba nyakang, ka yeo ba nyakang. Ge ba nyaka go boela gae ba boele gae, go se ke gwa ba le gore o na le mokitlana wo mongwe wo o go imelago gore o palelwe le ke go hema.(Translation of Sepedi paragraph follows.)

[We want our people to feel free and comfortable - to live in places of their choices. If they wish to go back home, they should be able to do so without any problem due to heavy debts.]

Then, the department released a comprehensive plan for the development of sustainable human settlement entitled Breaking New Ground. This document reinforces the vision of the Department of Housing to promote the achievement of a nonracial integrated society through the development of sustainable human settlement and quality housing.

E sego tšeo re bego re di bona peleng. [Things should be different from what happened in the past.]

The Bill is expected to assign the responsibilities of national, provincial and local government on matters pertaining to social housing. It will also ensure that the relevant institutional arrangements and capacity required by social housing programmes are in place.

The Bill also deals with the establishment and functioning of a Social Housing Regulatory Authority as a statutory body. Its functions are to regulate social housing, accredit social housing institutions; advise the Minister on matters pertaining to social housing; administer and disburse capital and institutional grants; conduct compliance monitoring via inspections; and to intervene in the day-to-day management of social housing institutions in cases where regular inspections have identified maladministration.

In this regard, hon Minister, I would like to say this is a very big responsibility. They should ensure that our people are accommodated in houses that will not fall down. Furthermore, they should be monitoring that inspectors are reinforcing the mandate that they are given by Parliament, the department, and by this Bill in order to ensure that our people are not taken for granted as is the case at the present moment with other contractors. The agencies that we are establishing must ensure that they do exactly what is required of them.

The Bill makes provision for the accreditation of social housing institutions that will ensure that every person who is in need of housing gets housing, and that every person who applies for social housing rental stock gets that. But, hon Minister, there is a problem with the very same infrastructure in Limpopo. There is a place called Garena, near Polokwane. The infrastructure there is okay.

Bothata bjo bo lego gona ke gore maitshwaro a batho ba gaborena ka nako ye nngwe a re iša fase. [Our people sometimes behave in a disappointing way.]

They behave in a manner that ensures that when government has provided accommodation it looks and wants to take them out of those houses.

Ba lwa ka gare ga dintlo tšeo. Ka yona nako ye ke bolelago ka yona motho yo mongwe o rwaletšwe bookelong. Bjale ke dira boipiletšo go badudi ba Afrika Borwa gore mmušo o leka ka maatla go ba fa madulo. A le rena re tšeyeng maikarabelo, re boneng gore seo mmušo o lekago go re direla sona se a phethagala.

Ka wona mantšu a, Morena Modulasetulo, ke re ANC e thekga Molaokakanywa wo. Ke a leboga. [Legofsi.] (Translation of Sepedi paragraphs follows.)

[They fight in those houses. As I am speaking now, someone is being taken to hospital. I am making a plea to the citizens of South Africa that the government is trying its best to give them houses. We must then take responsibility to ensure that the endeavour by government becomes a reality.

With these words, Mr Chairperson, I say the ANC supports this Bill. I thank you. [Applause.]]

Ms A N T MCHUNU: Chairperson, hon Minister, and the staff of the Housing department, the good intentions of providing houses may be fraught with many challenges. Changing the approach to housing provision by the department is welcomed and encouraged. The proposed legal framework has to be accompanied by business plans as well as architectural plans so that construction on site is started immediately when the budget is available. Underspending on the housing budget in the sea of housing needs is unimaginable.

Poor service delivery in rural areas has resulted in a massive exodus of people to towns and cities in search of job opportunities. Being poverty- stricken, all they can do is to put up shacks for accommodation.

Therefore, the Social Housing Bill is welcomed and has to look at accommodation that can be provided.

Street vendors who make less than R100 a day and have no shacks sleep on the streets under the blue sky and on rainy days they cover themselves with plastic sheets. So, open holes with a roof above one’s head are needed. People in transit provide themselves with sleeping bags or blankets but they must have adequate toilets and showers that are clean and hygienic. We will remember in the olden days there was a place called Kwa-Tiki or Three Pence.

Rental flats with single, double or multiple accommodation for people who work in town and cannot move their families because they need to work there have to be provided as well. The word “hostel” is out, but partnered workers still live there and they cannot without partners go to their homes. They only go to their homes over weekends or at the end of the month, just like parliamentarians. Their housing needs need to be provided for as well.

The housing budget should be used for solid houses with a good foundation. Even poor people need quality houses, be it small. Fly-by-night contractors distort the image of the department and its partners. Bigger companies could act as mentors and provide support. The promotion of unbiased rural development could assist rural communities to be economically viable and reduce the exodus of the people to towns, particularly in the present economic climate.

According to the chairperson of the Select Committee on Finance, this Social Housing Bill may look into providing miniature houses in rural areas, versus the provision of sites for storing food and farming equipment.

Rural communities build spacious houses so that these sites could be treasured for life. Of course, even then there will be poor households and we will still need housing. Housing co-operatives will ensure that communities assist each other. Communities in rural areas are often promised houses when there are elections.

Amakhosis and iziNdunas have to be part of these programmes. The issue of land should be discussed with them with regard to building houses or expanding towns or suburbs. The state law advisers did not see the need to refer the Bill to the National House of Traditional Leaders. This is cause for concern because the perception may be that traditional leaders are persona non grata, and this would leave a bad taste in the mouth of leaders in all spheres who come from the countryside or the indigenous areas. The IFP supports the core Social Housing Bill, but further attention should be paid to development as it occurs or unfolds. I thank you.

Mnr F ADAMS: Voorsitter, agb Minister, agb kollegas, Suid-Afrika is ’n groeiende land wat al hoe meer mense van alle vlakke van die samelewing lok.

So is Kampsbaai een van die gebiede wat bykans `n 60% styging in eiendomswaardes beleef het, terwyl die res van die provinsie, soos in die hele land, ’n afname van 10% in huispryse ondervind het. Dit is een van die gebiede wat die Stad Kaapstad “silver spoon”-areas noem. Dit word gedoen omdat die mense daar gereken word asof hulle met die spreekwoordelike welvarende silwer lepel in die mond gebore is.

In uiterste skrille kontras daarmee, bly honderde, selfs duisende mense in Kaapstad onder die skreiendste omstandighede. Die uiterste armoede en haglike toestande heers daar, terwyl groot dele van die stad se mense ongestoord hulle gang gaan en talle gesiglose arm mense ignoreer. Wat meer is, die Stad Kaapstad reken self bykans ’n halfmiljoen wooneenhede is nodig om die agterstand met behuising binne sy stadsgrense uit te wis.

’n Metroraad is ’n munisipale of plaaslike bestuursowerheid wat ruim belasting insamel en ook toekennings van ander sfere van regering ontvang om dienste aan sy inwoners te lewer. Dit is ’n internasionaal aanvaarbare norm dat regerings belastings van alle mense invorder en dan daardie geld in die openbare belang bestee. ’n Groot deel daarvan word gebruik om die infrastruktuur en lewensgehalte van veral armer inwoners te verbeter. Anders het die rykes strate van goud gehad, terwyl die gewone mense in modder en riool moes rondploeter.

Dit is hierdie basiese grondslag van sy taak as plaaslike regering – en ek herhaal, regering – wat die DA-misleide raad van Kaapstad doelbewus poog om te omseil. Selfs van daardie onheilige samespanning tussen partye, wat nie een ’n wyk in die laaste verkiesing kon wen nie, en die jakkalsagtige DA se poging om die stadsregering te kaap, het daar dadels gekom. So ook van die leidende DA se mooi broodjies in manifeste en beleidstukke oor hoe ’n munisipaliteit moet werk.

Wat die DA-beheerde koalisie sedertdien gedoen het – die ander partye is mos nou netjies met soustreinposte stil gemaak – sal in ’n duisend jaar geen verskil maak om Kaapstad ’n plek te maak waar gewone mense ’n aanvaarbare bestaan kan voer nie. Inteendeel, die DA se ’’English lips’’ en ’’angry white overlords’’ doen alles in hul vermoë om sy nasionale en provinsiale regeringsvennote se werk ongedaan te maak, ‘n atmosfeer teen hulle te skep, en om moedswillige vertragingstaktiek toe te pas.

Maatskaplike behuising is ’n hol begrip vir ’n party wat net na die belange van sy ryk skenkers en middelklasondersteuners omsien. [Tussenwerpsels.] Hy het geen belang by die lot van arm mense nie en sal net lippediens betoon om die sogenaamde regte dinge te sê, maar in die praktyk net mooi niks doen om die armes se las te verlig nie.

Hoewel Kaapstad die oorgrote aantal verhuurbare wooneenhede vir arm mense in hierdie provinsie besit, doen daardie raad bitter min om dit behoorlik in stand te hou en voel vere om nog meer mense te help om ook ’n holte vir hul voet te vind. Die DA-geleide Kaapstad se standpunt hieroor is duidelik: raadslid Frank Martin en burgemeester Helen Zille het in Delft mense ondersteun, en skelm in die middel van die donker nagte diegene besoek, wat ander inwoners van die stad as buitestaanders gebrandmerk het, om hul grond en huise te beset.

Oor mense wat in die vlaag gewelddadige xenofobiese aanvalle ontheem is, het Zille in ’n brief in Die Burger te kenne gegee dat sy net van hierdie probleem ontslae wil raak. Stuur hulle terug na hul lande van oorsprong en die provinsie moet die versorging van die mense oorneem, het sy geskryf. Hierdie is die bekendste bewys van die Engelse libertynse, Nimby-sindroom van ’’not in my back yard’’, agb Watson. [Tussenwerpsels.]

Dieselfde allergiese gedrag is sigbaar in sy hantering van mense wat nie vir die DA stem nie of wat hy as vreemdelinge of inkommers beskou, agb Krumbock. Die fariseëragtigheid is in kontras met die DA se ooparm verwelkoming van DA-ondersteuners uit ander dele van die land en selfs buitelandse DA-skenkers wat hulle hier kom vestig. Dus, die DA verwelkom jou net as jy ’n DA-lid of ’n DA-ondersteuner is. So nie, is jy persona non grata. Of jy ’n wettige inwoner en belastingbetaler is, tel nie punte nie. Zille is daarvolgens net burgemeester vir die DA en sien net na hul belange om.

Dit is ook te sien in die manier waarop wykstoekennings bestee is. Dit is net in DA-wyke gedoen. Die DA-stadsraad het geen beduidende of behoorlike voorsiening in sy begroting, wat vandag voor daardie raad dien, gemaak nie. Hy wil nie genoeg geld gee om arm mense sonder huise te help nie. Daar word ook nie grond gekoop om mense op te vestig nie. Die grond wat daar is, word nie beskikbaar gestel nie. (Translation of Afrikaans paragraphs follows.)

[Mr F ADAMS: Chairperson, hon Minister, colleagues. As a growing country, South Africa is attracting more and more people from all walks of life.

In Camps Bay we have an area that has experienced an almost 60% increase in property values, while the rest of the province, like the whole country, has experienced a 10% drop in house prices. It is one of the areas called “silver spoon” areas by the City of Cape Town. This is because the people there are regarded as having been born with the proverbial affluent silver spoon in the mouth.

In absolutely glaring contrast, hundreds or even thousands of people in Cape Town are living under the worst conditions, in abject poverty and desperate circumstances, while large sections of the city’s people go on undisturbed, ignoring the many faceless poor people. Moreover, the City of Cape Town itself estimates that about half a million housing units are needed to address the housing backlog within the city limits.

A metro council is a municipal or local government authority which collects taxes in abundance and also receives allocations from other spheres of government in order to render services to its inhabitants. It is an internationally accepted norm that authorities collect taxes from all people and then spend this money in the public interest. A large part of it is used to improve the infrastructure and quality of life of especially the poorer inhabitants. Otherwise the rich would have streets of gold while the average people would be sloshing along in mud and sewage.

It is this underlying principle of its task as local government – and I repeat, government – which the DA-misled council of Cape Town is purposefully attempting to evade. Even from the unholy coalition between parties that were unable to win a single ward in the last elections and the fox-like DA, in its attempt to hijack the city government, nothing has come. The same goes for the governing DA’s attempt to curry favour in manifestos and policy documents as regards how a municipality ought to work.

What the DA-controlled coalition has done since then – of course, the other parties have been silenced with gravy train jobs - won’t make a difference in a thousand years in making Cape Town a place where average people can make an acceptable living. In fact, the DA’s “English lips” and “angry white overlords” are doing everything in their power to undo the work by its partners in national and provincial government, creating an atmosphere against them and applying wilful delaying tactics.

Social housing is a hollow concept for a party that only looks after the interests of its rich donors and middle-class supporters. [Interjections.] It has no interest in the fate of the poor and will only pay lip service so as to say what sounds “correct”, but in practice it will simply do nothing to alleviate the plight of the poor.

Although Cape Town commands the large majority of rental residential units for the poor in this province, that council is doing precious little as regards their proper maintenance and also completely disregards helping others to find a place to live. The position of the DA-led Cape Town is clear in this regard. Councillor Frank Martin and Mayor Helen Zille supported the people in Delft, but in the middle of the night they stealthily visited those people who had branded other citizens of the city as outsiders in order to occupy their land and homes.

As regards those who were displaced in the wave of xenophobic violence, Zille has intimated in a letter in Die Burger that she just wants to be rid of this problem. Send them back to their countries of origin and the province must take over the care for those people, she wrote. This is the most public proof of English liberalism, the Nimby - not in my backyard - syndrome, hon Watson. [Interjections.]

The same allergic attitude can be seen in their treatment of people who do not vote for the DA or who they regard as strangers or newcomers, hon Krumbock. The pharisaical attitude is in contrast with the DA’s open-armed welcoming of DA supporters from other parts of the country and even foreign DA donors who come to settle here. So the DA only welcomes you if you are a member of the DA or a supporter. If not, you are a persona non grata. Whether you are a legitimate resident and taxpayer doesn’t count. In those terms, Zille is mayor of the DA only and looks after their interests only.

This is also evident from the way in which ward allocations have been spent. It was only done in DA wards. The DA city council has made no significant or proper provision in the budget now serving before that council. They will not give enough money to help those poor people without homes. Land to settle people on is also not being procured. The existing land is not being made available.]

The HOUSE CHAIRPERSON (Mr T S Setona): Hon Adams! Hon member, hon member! Can I take a point from the hon member?

Ms D ROBINSON: I would like to know whether the hon Adams will take a question.

Mr F ADAMS: I think tomorrow at this time, Chair.

The HOUSE CHAIRPERSON (Mr T S Setona): The hon member doesn’t want to take your question. That is sufficient.

Mnr F ADAMS: Die DA wil nie genoeg geld gee om arm mense sonder huise te help nie. Daar word ook nie grond gekoop om mense op te vestig nie. Die grond wat daar is, word nie beskikbaar gestel nie, omdat die DA nie arm mense in hul gebiede wil toelaat nie, want hulle mag dalk vir ’n ander party stem. Die DA speel dus speletjies met mense se lewens en tragiese omstandighede.

Behalwe dat Kaapstad se DA selektief net geld aan infrastruktuur in sy DA- kiesersgebiede bestee, ignoreer hy flagrant die nood in ander gebiede. [Tussenwerpsels.] Kaapstad pas fiskale storting toe. Hy gooi oorskotte in sy kapitaalbegroting op sypaadjies in gediensde gebiede; hy pak bakstene op verkeerseilande, onder bome en in tuine terwyl daar mense in hierdie stad is wat geen boom het om onder te slaap nie – nie plek vir ’n tuin het of ’n baksteen om hulle teen die aanslag van koue, reën, stormwinde, water, en warm weer te beskerm nie. Dit is hoe skynheilig die tweegesig DA-monster is.

Behalwe dat die stad nie dienste aan inwoners wil lewer nie, wil hy ook nie met ander regeringsvlakke saamwerk nie, en doen alles moontlik om met die N2 Gateway-projek te sloer; of gee stukkies grond vir ekonomiese behuising aan simpatieke vriende en van sy voornemende skenkers. Die DA dink hy kan die taak deur die privaatsektor laat doen. Maatskaplike behuising is ’n taak van die regering en ons moet dit saam doen, agb Watson. Die ander wil geldmaak; nie ander mense help nie, soos die DA dit doen.

Die DA stoom voort met sy ou storie. Hy wil regeer, maar waar hy die bus gevang het, is hy nie gebore in staat om goeie bestuur toe te pas nie, agb Watson. Hy is ’n afvlerkparty wat lam raak as n yslike taak aangepak moet word. Kortom, die DA is soos hulle sê in Kaapse terme of op die Vlakte: Die DA is “useless” en kan nie in regering vertrou word nie. [Tussenwerpsels.] Hy verdien dit om deur sy eie kiesers verwerp te word omdat hy ’n teleurstelling is en bly, ongeag wie sy leier is. (Translation of Afrikaans paragraphs follows.)

[Mr F ADAMS: The DA doesn’t want to give enough money to assist poor people without homes. Land is also not being procured to settle people on. The land already there is not being made available because the DA will not allow poor people into their areas, because they may just vote for another party. The DA is therefore playing games with people’s lives and tragic circumstances.

Besides only spending money selectively on infrastructure in its own voters’ areas, the DA is also flagrantly ignoring needs in other areas. [Interjections.] Cape Town applies fiscal dumping. It is spending surpluses in its capital budget on sidewalks in serviced areas. It is laying bricks on traffic islands, under trees and in gardens, while there are people in this city who have no tree to sleep under, no space for a garden, nor a brick with which to protect themselves from the cold, rainy weather, gales, water and even warm weather. That’s how hypocritical the two-faced DA monster is. Apart from the fact that the City refuses to render services to residents, it also won’t co-operate with other tiers of government and is doing everything possible to delay the N2 Gateway project; and it gives tracts of land for economic housing to sympathetic friends and some of its prospective donors. The DA thinks it can let the private sector perform this task. Social housing is a government task and we should do it together, hon Watson. The others want to make money and not help the people, just like the DA is doing.

The DA is forging ahead with its old story. It wants to govern, but from where it got on the bus it is totally unable to effect sound management, hon Watson. It is a party with a broken wing, which goes lame whenever an enormous task has to be tackled. In short, as they say on the Cape Flats: The DA is useless and cannot be trusted in governance. [Interjections.] It deserves to be rejected by its own voters because it is and will remain a disappointment, irrespective of who its leader may be.]

I want to quote, in conclusion, a great leader of the ANC, Chief Albert Luthuli. He said:

Our vision has always been that of a nonracial, democratic South Africa which upholds the rights of all who live in our country to remain there as full citizens, with equal rights and responsibilities with all others. For the consummation of this ideal we have laboured unflinchingly. We shall continue to labour unflinchingly …

… in uplifting the poor. I thank you. [Applause.]

The MINISTER OF HOUSING: Hon Chairperson, it is always such a tragedy to follow on an eloquent speaker like the hon Adams because I cannot step into his shoes. I just ask the House to bear with me for a while.

I would like to deal with the matters raised chronologically because most of them have a great deal of substance that I would like to respond to. The hon Watson has, unfortunately, used the occasion to make sweeping statements about the policies that have underpinned our economy and has made very oblique references to and implications of the Bill. The Bill, however, I must note has been called progressive by the DA – I don’t know whether I should take this as case of death for my Bill – but anyway I welcome their support because, indeed, I do regard it as a very progressive Bill.

The point about child-headed households is considered, hon Watson. Let me explain the policy on housing. We allow a choice of housing opportunities to all. What we do for the most vulnerable – which will be child-headed households – would be either free housing or subsidised housing. We would like you to understand that so that you can channel them to those who need to be given free housing. We give support to a particular segment of people that have the ability to rent. We do not regard child-headed households as having the ability to rent. Therefore, we did not make special provision for them because we are hoping that they are provided for in the law, to give them free housing and are prioritised on the waiting list. I hope that this is taken care of and understood. So, should you encounter child-headed households in your constituency, please understand that they receive priority on our waiting list and we give free housing for such categories.

I’m grateful to the chairperson for providing the necessary background information about why this sector of housing is such a crucial intervention, especially with regard to ensuring that people have access to places close to workplaces and social amenities; the important notion of shared experience across previously desperate groups; and a shared experience that will ultimately build a truly transformed country and people.

Hon Tau, your concern about the role of the private sector is noted. Social housing in itself does not ensure co-operation between the private sector and government, but through the subsidy we attract and harness the private sector. The regulatory framework that has been established through the Bill will ensure that we are able to lay down laws, norms and standards for any institution that operates in this segment. We will pay particular attention to this for the comfort of the provinces that have raised this with you. Indeed, hon Matlanyane, I also grew up in Atteridgeville. You won’t believe this but through this intervention we intend to ensure that people have a choice to live where they want. Hon member, I am very grateful for the input that you have made by calling on our people with the message that they should understand that they have a responsibility especially in terms of the project you mentioned in Limpopo. We, indeed, do everything we can and, therefore, we expect that the citizens have to understand their responsibility within democracy. It imposes a particular responsibility on them to do their bit and to look after the government’s provision. I’m glad that you mentioned it in the language understood in Limpopo; I hope they are listening.

We are also very concerned about the issue you raised about ensuring quality. We are making sure, as you have indicated, that there are inspectors. This is a priority for us. When people use their hard-earned money to rent accommodation, the quality has to be worth the rental. This matter will be attended to.

Hon Adams, the screen indicated that you will be speaking English, so I thought I had a split personality when you launched into Afrikaans. I was diving for my interpreting device and missed the most vital part of what you said. But what I got I am extremely grateful that you did mention it and it is absolutely true is that the City of Cape Town has undermined all the efforts which both the national and provincial government have put in place to ensure that most of the policies are tested somewhere. I am very glad that you have said it in a language that will reach the people who understand what we are saying.

Finally, within the limited time that I have I would like to apologise to the hon member from KwaZulu-Natal for the fact that the state law advisors did not see it necessary to send this Bill to the traditional leaders. In a way, I’m very glad because the turnaround time was so much quicker. But I apologise as it gives the impression that, perhaps, they were omitted from this. I am very glad that you and the IFP have accepted this Bill. I would like to think that wherever it is possible you will explain that it was not our intention to exclude them and that whenever possible we will bring them on board. I hope that the House will explain that the intention of this Bill is to ensure that, especially in areas within the urban areas where people come to work, we provide affordable accommodation.

I want to say to the hon members that beyond those areas that we have mentioned, we live in difficult times to which most people have to adjust. We hope that this Bill will create the necessary safety net for those who need shelter and can no longer afford where they live. I hope, now that this Bill has been passed, those categories on which members have elaborated will be catered for. I’m extremely impressed with and grateful for the level of interaction we had between the Bill and the members of this House. Thank you very much. Debate concluded.

Voting deferred.

                   HOUSING DEVELOPMENT AGENCY BILL

            (Consideration of Bill and of Report thereon)

Mr C J VAN ROOYEN: Chairperson, hon Minister and members, at the Polokwane Conference in December 2007, the ANC noted that South Africa has entered its second decade of freedom with the strengthening of democracy and the acceleration of the programmes to improve the quality of life of all the people. The following resolutions were therefore taken: firstly, to develop appropriate legislation to prevent the mushrooming of informal settlements and, secondly, that in order to deal effectively with the challenges of human settlement, land acquisition be accelerated through a dedicated housing agency.

The establishment of the Housing Development Agency must be seen in the context of the provisions of the Constitution which, in section 26, clearly states that everyone has the right to have access to adequate housing and that the state must take reasonable legislative and other measures within its available resources to achieve this.

In 2004, the government introduced a comprehensive plan for the creation of sustainable human settlement. This plan aims to allow for immediate short and medium-term interventions on the supply side of housing in South Africa. Some of the main focus areas of the plan are to provide a variety of housing options in well-located areas and to identify and unlock any existing housing delivery constraints. The acquisition, holding and the release of land as well as the slowness in the development of land are currently the biggest causes of the slow delivery of housing. The size of the housing backlog in South Africa requires that we start thinking outside the box to find new and innovative ways in dealing with this backlog.

On the aims and functions of the Housing Development Agency Bill, the Minister of Housing said it best in her speech to the National Assembly on 8 May 2008 when she said, and I quote:

…the Housing Development Agency Bill establishes the Housing Development Agency as a statutory body, and its main purpose is to address, one, the shortage of well-located land; two, the facilitation of the rapid development of sustainable human settlements by proactively improving intergovernmental relations across all three spheres of government in respect of ensuring that needed inputs are delivered; and, three, addressing the supply of much-needed project management capacity for government projects.

The rationale behind the agency is that it would assist in cutting red tape that prohibits the acquisition of suitable land, something that would be very difficult for municipalities or provincial departments to do on their own. The agency will also aid with minimising red tape in the approval of development both by government and the private sector. This, in turn, should make the housing segment attractive for increased private sector investment. After all, the private sector is a very important key player in the provision of safe, affordable housing to all South Africans.

The agency will facilitate the acquisition of land in a way that supplements the capacities of government across all spheres. Municipalities will be expected to use their housing sector plans to identify local housing land needs. The provincial housing departments will be responsible for assisting local authorities in developing their land needs assessments and in co-ordinating individual municipal submissions into a provincial plan.

The Minister further said, and I quote again:

The Bill provides for an agreement between the agency and municipality where a council lacks the capacity to acquire, hold and develop and release land for residential or community development. Such an agreement will also allow the HDA to undertake these tasks on behalf of the municipality. The agency will also be empowered to assist municipalities to complete unfinished projects and the Bill provides for the facilitation of project management.

This is not a new concept. Governments in countries such as Namibia, India, Sri Lanka, China and Malaysia have established similar housing agencies. Since the Bill was referred to this House, provinces have embarked on extensive programmes of consultation through public hearings. In the Free State, public hearings were held in all its regions. In the Eastern Cape, public hearings were held in 32 locations. In Mpumalanga, public hearings were held in five district municipalities. In Limpopo, public hearings were held in five regions, to mention a few.

The issue that needs special attention and which was not addressed by this Bill is the strategic role that traditional leaders can play in this matter. This matter was raised by all the provinces during the negotiating phase of this Bill. A further issue that was raised by the committee was the relationship with the making of regulations. Here the committee strongly felt that Parliament has a role to play and should therefore be consulted.

Chairperson, the ANC supports the Bill. I thank you. [Applause.]

Debate concluded.

Voting deferred.

             CROSS-BORDER ROAD TRANSPORT AMENDMENT BILL

            (Consideration of Bill and of Report thereon)

Mr A WATSON: Hon Chair, hon Minister – there’s no Minister here, but in absentia - hon members, the Bill originally seeks to amend the Cross-Border Road Transport Act of 1998 so as to insert the table of contents, to amend and insert certain definitions, and also to arrange for the outsourcing of certain levies and to collect tolls on behalf of the SA National Road Agency Ltd.

Furthermore, the Bill seeks to institute a variety of other measures, which I won’t mention, and to provide for the matters connected therewith.

The Bill, when scrutinised by our colleagues in the National Assembly, appeared, on the face of it, to be of a simple procedural nature, but turned out to be much more complex. An in-depth scrutiny resulted in a number of fundamental adjustments and amendments effecting, amongst others, that the Cross-Border Road Transport Agency should not be seen as a toll- collecting functionary of the SA National Road Agency Ltd, but that such arrangements should be dealt with through some memorandum of understanding or bilateral arrangement; that both the SA National Road Agency Ltd and the Cross-Border Road Transport Agency should stick to their individual mandates; and, finally, that the original clause 16(d) could be seen as unconstitutional and a hindrance to seamless cross-border transport and could clash with permits issued by the operating licence boards for taxis servicing border routes. The clause was consequently removed.

The Select Committee on Public Services further scrutinised both the Bill and the National Assembly portfolio committee amendments, and satisfied itself of the desirability of the remaining amendments and concluded that no further additions or amendments could be put before this House.

The select committee, therefore, supports the Bill as amended by the National Assembly and calls on the NCOP to support the Cross-Border Road Transport Amendment Bill before us. And just for the benefit of hon Kgoshi, I can add that my party, the DA, also supports the Bill. I thank you. [Applause.]

Debate concluded.

Bill agreed to in accordance with section 75 of the Constitution.

            FINANCIAL INTELLIGENCE CENTRE AMENDMENT BILL

            (Consideration of Bill and of Report thereon) Mr Z S KOLWENI: Chairperson, hon members, I stand before you to present this piece of legislation, that is the Financial Intelligence Centre Amendment Bill. Why this amendment? The Bill seeks to amend the principal Act, namely the Financial Intelligence Centre Act of 2001. The thrust of the Act is to combat money-laundering.

Money-laundering is the process of disguising illegitimate income to make it appear legitimate. In other words, it refers to activities that hide the origins and ownership of money that is earned through criminal means. Money- laundering allows criminals to enjoy their profits without risking the source of income. Examples of illegal activities are illegal arms sales, smuggling, drug trafficking, prostitution, embezzlement, insider-trading, bribery, financing of terrorist activities and computer fraud.

The main objectives of this Bill, therefore, are as follows: To provide an administrative enforcement framework; to enhance supervision of and enforce compliance with the principal Act; to ensure consistency with international standards for regulation, supervision and compliance with anti-money- laundering and counterterrorist financing measures; to adhere to the precedents of the enforcement committee as established in the Securities Services Act and the administrative penalties regime introduced in 2007 under the Pension Funds Act; and to propose a few technical amendments to enhance legal certainty and clarity. The Bill currently before the National Council of Provinces will further entrench the responsibility of supervisory bodies to supervise compliance with the Financial Intelligence Centre Act by expressly adding this to their functions. That will remove any uncertainty that presently exists.

The Bill seeks to ensure that organised crime syndicates do not find a safe haven to hide their illegal and unscrupulously acquired wealth.

The Select Committee on Finance appeals to the National Council of Provinces to support the amendment to this piece of section 75 legislation. Thank you. [Applause.]

Debate concluded

Bill agreed to in accordance with section 75 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - OVERSIGHT VISIT TO LIMPOPO ON 22 FEBRUARY 2008

Mr D J BOTHA: Hon Chairperson, the Select Committee on Finance conducted an oversight visit to the province of Limpopo on Friday, 22 February.

The background to the Limpopo visit was actually the public hearings that were held here in the House on road transport, local government, housing, agriculture, health, sports, arts and culture, water affairs and the provincial treasury.

The terms of reference were actually to find out the spending trend of the departments in the province. Our findings, when we visited the Limpopo province, in respect of this mandate that was given to us, were that the provincial department of agriculture was building roads. Regarding transport, we found out that, generally, there was no co-operation amongst departments in the province. The two departments don’t speak to each other regarding the process. There was no collaboration between the two departments. There is a lack of co-operation in the department’s Roads Agency Limpopo, RAL, with regard to business plans and reporting back.

In regard to RAL, they actually received 80% of the budget for Limpopo province’s roads. Actually, when comparing the two, RAL has 40 employees compared to the department of transport, but RAL has 80% of the budget. That was a big concern for the committee, and we asked the provincial treasury to investigate the process and report back to us.

Regarding the Department of Sport, Arts and Culture, the committee found that in the previous financial year, 2007-08, the department hadn’t spent any money on libraries. The committee, in respect of that, asked the provincial department to investigate that and to report back to us. Also, there was another visit to the province regarding the Department of Sport, Arts and Culture with a focus on libraries and sport, and we found that what was actually reported here in this House and what we found on the ground were two totally different things. We will also have to follow-up with another visit to the province, because the head of department, on that occasion, was not available.

The Department of Housing did not attend the meeting when we visited the province, so we do not actually have any report on that. Regarding the Development Bank of Southern Africa, we asked them to report back to us, and actually, up until this point, we haven’t received any report for the DBSA and the Department of Provincial and Local Government. The queries were over their spending regarding that.

The provincial Department of Health, when they reported to us here in this House, actually said that there was a shortage of money, but we found out the situation via a report. The committee made the following observations regarding health: For the provincial growth and development strategy of any province to work, it requires healthy people to take part in it; the extension of the occupation-specific dispensation was very high; and there was a need to align provincial priorities and national priorities. The baseline had risen from 24% to 25,9%, and our recommendation to treasury in the province is that they have to increase the baseline for health to 26,5%.

We ask that this report be accepted by this House. Thank you. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - OVERSIGHT VISIT TO EASTERN CAPE FROM 21 to 22 FEBRUARY 2008

Mr M O ROBERTSON: Chairperson, hon members, on 21 and 22 February 2008, the Select Committee on Finance held hearings with the Eastern Cape provincial departments and the Great Kei Municipality. [Interjections.]

Concerning the departments of local government and housing, we observed the following: poor planning by both the departments and municipalities, as many of the approved projects were not ready for implementation; and many of the emerging contractors lack capacity, and the established contractors were not attracted to the rural areas.

Chairperson, the slow start to the housing rectification programme is a great cause for concern. Community housing that the Eastern Cape had inherited from KwaZulu-Natal, and I mentioned Matatiele, is experiencing a large shortage of funds.

The rectification programme has been handed over to the National Home Builder’s Registration Council, NHBRC. All contractors are to be approved by the NHBRC and must be compliant with the Construction Industry Development Board. This is progressing slowly due to the lack of capacity; for example, only 5 000 units have been dealt with out of the 19 800 units.

There was some misalignment of municipal infrastructure grant funds and the housing grant. We were also informed that houses have been built without the necessary support of the bulk infrastructure.

The building of infrastructure is the responsibility of the Department of Public Works and this in itself raises concerns whereas in the Eastern Cape health and education seem to have many demands for public works projects.

The library service grant for the Eastern Cape was R22,68 million of which only R10,49 million was spent. The department reported that the main reason for underspending was the lack of capacity.

Chairperson, in the Great Kei Municipality, electricity distribution was confined to the Komga area. Eskom received only R500 million from the Department of Minerals and Energy to re-establish networks in Komga.

This is a struggling municipality that would need a lot of assistance from us here at the NCOP. Refuse removal was also a challenge and the Great Kei Municipality seems to have a problem with collecting revenue even at coastal holiday resorts, such as Kei Mouth and Morgan’s Bay, which could assist them greatly if they got their act together.

Recommendations are that there should be ongoing forums where planning issues are discussed to ensure that stumbling blocks are removed, and that follow-up by the Select Committee on Finance would be vital.

In consultation with the hon Sogoni, we would like each member to leave R3,00 with Comrade Sogoni or myself so that we can buy a tie for Comrade Selebi from the Free State. Thank you. [Laughter.]

Debate concluded. Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - OVERSIGHT VISIT TO IDENTIFIED MUNICIPALITIES IN MPUMALANGA FROM 18 TO 19 MARCH 2008

Mr B J MKHALIPHI: Chairperson, hon colleagues, I am sure we need to emphasise that the time allocation of five minutes doesn’t necessarily imply that these issues are of lesser importance.

Our visit to the Mpumalanga province municipalities was in part informed by the Auditor-General’s reports. The committee took a mixture of those municipalities that were best performing and those that were struggling to comply. Nine municipalities, including one district municipality, were involved in our discussions.

Since our approach is always solution-orientated, we had with us the Department of Provincial and Local Government, the Department of Minerals and Energy, the Department of Water Affairs and Forestry, Eskom, National Treasury and the Department of Education in Mpumalanga. Discussions evolved around issues of budget implementation as per the Local Government: Municipal Finance Management Act, intergovernmental relations and a reflection on capacity constraints.

Our interaction brought to the fore some remarkable disparity on the level of capacity among municipalities of the same category in the same province. For instance, Steve Tshwete Local Municipality does not only comply with legislation and policies, but goes further to innovate on the issue of housing. These municipalities challenge us to allocate additional funding for housing. They would, as they boasted, eradicate informal settlements within 24 months, whereas municipalities like Msukaligwa and Albert Luthuli were still struggling to utilise their housing allocations, including conditional grants and the municipal infrastructure grant, in particular.

The issue of revenue generation was a general concern among the local municipalities interviewed, except the Steve Tshwete Local Municipality. The Department of Education was called upon to settle all outstanding bills with municipalities without further delay. On closer scrutiny of the budgets it became apparent that Albert Luthuli and Msukaligwa needed drastic refinement. Their reports indicated that they had their personnel strength at 50% of their organogram, yet this half strength accounted for nearly 40% of the entire budget. Our concern, therefore, was that this expenditure amounted to about 70% of the budget. The two municipalities were advised to subject their organogram to an efficiency assessment.

The Select Committee on Finance continues to engage these municipalities in dealing with the identified challenges. I therefore implore this House to take note of the report as well as its implementation. I thank you. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - OVERSIGHT VISIT TO IDENTIFIED PROVINCIAL DEPARTMENTS AND SOL PLAATJIE MUNICIPALITY, NORTHERN CAPE

Mr T S RALANE: Chairperson, I propose that the House adopts this report. Thank you. [Applause.] [Laughter.]

Debate concluded. Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON ECONOMIC AND FOREIGN AFFAIRS

• ADDITIONAL PROTOCOL ON THE TRADE, DEVELOPMENT AND CO-OPERATION AGREEMENT BETWEEN THE REPUBLIC OF SOUTH AFRICA AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATES

Mr J M SIBIYA: Chairperson, colleagues, ladies and gentlemen, trade between the European Union, EU, and South Africa is estimated at about €30 billion a year. The EU remains South Africa’s main trading partner accounting for over 40% of its imports, nearly 30% of the exports and over 30% of foreign direct investment that flows to South Africa. Conversely, roughly 66% of South African assets abroad are held within the EU.

The Trade, Development and Co-operation Agreement governs the trade relations between South Africa and the EU. South Africa and the European Community and its Member States signed the Trade, Development and Co- operation Agreement on 11 October 1999. It was applied on a provisional basis with effect from 1 January 2000 and fully entered into force with effect from 1 May 2004. The objectives of the Trade, Development and Co- operation Agreement are to cement South Africa’s relationship with the EU by providing certainty to South African operators; improve market access for exporters on both sides; integrate South Africa into the global economy; and to promote South Africa’s economic development.

These objectives are fulfilled through the establishment of a trade arrangement between South Africa and the EU over a transitional period of 12 years. The EU has pursued ever-deeper integration while taking in new members. As a consequence, today’s EU, with 27 member states and a population of close to 500 million people, is more prosperous, stronger and more influential than the original European Economic Community of 50 years ago. The wider internal market and new economic opportunities have increased European’s prosperity and competitiveness.

The EU’s economic integration has been six enlargements with the largest occurring in May 2004, when 10 Central and Eastern European countries joined. The most recent enlargement occurred on 1 January 2007 when Romania and Bulgaria joined the EU. The enlargement of the EU from 25 to 27 member states will extend South African exporters’ access to these two new member states of the EU. At the same time, South African economic operators and consumers may benefit from lower-priced products on imports from these countries. The trade arrangement between South Africa, Romania and Bulgaria is on the same terms set out in the Trade, Development and Co-operation Agreement.

Die Gekose Komitee van Ekonomiese en Buitelandse Sake ondersteun. Baie dankie. [Tussenwerpsels.] [The Select Committee of Economic and Foreign Affairs supports. Thank you. [Interjections.]]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

 CONSIDERATION OF REPORT ON NCOP VISIT TO NORTHERN CAPE IN TERMS OF
            PROGRAMME OF TAKING PARLIAMENT TO THE PEOPLE

Ms B L NTEMBE: Hon Chairperson, hon members, this is not a party political speech. It is very neutral and it deals with taking Parliament to the people.

The NCOP Chairperson conducted a follow-up visit of Taking Parliament to the People to Northern Cape Province in the Kgalagadi District Municipality from 27 to 30 August 2007. The initial visit took place from 27 to 31 March

1. The NCOP delegation conducted various site visits to determine the progress made by the provincial departments. The delegation included local councillors and MPLs. This was conducted under the theme of “Masijule Ngengxoxo Mzansi”.

Various findings were made by the delegation with regard to education. A range of secondary schools put forward their challenges, such as: no fences around schools; the schools’ section 21 status; leakage of underground pipes; shortage of textbooks; shortage of computers; teacher shortages; inadequate school equipment; temporary teachers not receiving their salaries; language barriers as a medium of instruction; and inadequate transport for learners residing far from school. These issues relate to the no-school-fee system, which means no school fees are being paid at these schools.

Some of the issues have been addressed, such as: the fences have been erected; the school is in the process of appointing a qualified service provider for the leaking pipes; the Department of Education provided the school with textbooks; and additional permanent educating positions have been created to address the shortage of teachers. However, inadequate funding has resulted in the fact that the computer shortage could not be addressed. It was recommended that members of the legislature visit the relevant schools at least three times per annum. These challenges in schools are more or less the same.

With regard to the general observations and recommendations by the NCOP, the Chairperson of the NCOP, the hon Mr Mninwa Mahlangu, proposed having a meeting with the hon Premier of the Northern Cape province.

The health care issues that have been identified were a shortage of staff; inadequate medical resources, which includes the disposal of placentas after giving birth; a lack of infrastructure and equipment; poor road infrastructure; and a lack of telephone lines.

The progress made by the provincial Department of Health includes: the provision of ambulances; appointment of more staff; and the installation of telephone lines. But the current issues are problems in accessing water; an absence of medical doctors and dental surgeons; the need to train ambulance drivers as emergency care practitioners; and electric circuit cuts that impact negatively. These issues need to be looked at in most health centres, hon Chairperson.

Then we had farm visits where some issues were identified, including incomplete water reticulations; a lack of proper training in project management; and a lack of adequate watering points, resulting in the overgrazing of resources. These issues refer to the Rekopane Ostrich Agricultural Co-operative Enterprise Limited, which is an ostrich farm. There was also a lack of holding pens to enhance separation of the ostrich breeding pairs.

The response was that the Department of Agriculture, in partnership with the Nature Conservation Unit, referred members of the co-operative to an ostrich farmers training session. The Department of Agriculture provided a dam, fence and windmill to assist with water reticulation. About R120 000 was issued for purchasing a breeding machine. This money was issued by the Moshaweng Local Municipality, hon Chairperson. The co-operative is still facing financial challenges. These challenges are relevant to most developing farmers.

The issues which were raised in regard to the Expanded Public Works Programme relate to the following: a shortage of qualified personnel in certain aspects of the projects which poses a challenges; high levels of unemployment in the Kgalagadi District raise expectations of large numbers of people gaining employment from the EPWP projects; and the remuneration given to the EPWP beneficiaries has not increased since the programme was initiated. The response to this has been that the remuneration package increased from R40 per day to R50. Outstanding issues include the fact that the majority of the EPWP beneficiaries who participated in the construction of the road projects are currently unemployed and that there is no operational budget to maintain the newly constructed road. In conclusion, these are the challenges facing projects, and it needs to be given attention constantly.

I request the House to support and adopt this report.

I thank you, hon Chairperson. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE - EXPENDITURE FOR THIRD QUARTER OF 2007-08 FINANCIAL YEAR, DATED 23 MAY 2008

Mr B J MKHALIPHI: Chairperson, hon colleagues, the report was published in the Announcements, Tablings and Committee Reports of 10 June 2008. I won’t be going into the detail of the report, but will highlight a few things.

The intention of this report is to assist members to have a monitoring tool on the expenditure of departments. Particularly when we were dealing with Budget Votes, we thought this was an important tool when we commended or even raised concern about the expenditure of certain departments. This was one of the tools that assisted us in that regard.

We would also like to bring to the attention of this House that the report is tabled by the Joint Budget Committee and not the select committee as indicated on the speakers’ list.

Lastly, we as the Joint Budget Committee also feel that this report, as submitted by the Joint Budget Committee, has been diluted to some extent. We provided this report, especially the graphic part, in real colour, but when Parliament publishes the report in the ATCs it is in grey and black. In a way, it does dilute the essence of the message that the Joint Budget Committee wants to bring forth. But we are in discussion with the administration so that in future they will present our message as submitted. I implore this House to take note of this report and approve it. Thank you. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

The Council adjourned at 16:11. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORS

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Bills passed by Houses – to be submitted to President for assent

(1)    Bills passed by National Council of Provinces on 25 June 2008:


      a) Cross-Border Road Transport Amendment Bill [B 51B – 2007]
         (National Assembly – sec 75)


      b) Financial Intelligence Centre Amendment Bill [B 18B - 2008]
         (National Assembly – sec 75)

National Council of Provinces

The Chairperson

1. Message from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council

(1)    Bills passed by National Assembly and transmitted for
     concurrence on 25 June 2008:


     (a)      Child Justice Bill [B 49B – 2002] (National Assembly – sec
         75).


        The Bill has been referred to the Select Committee on Justice
         and Constitutional Affairs of the National Council of
         Provinces.

TABLINGS

National Council of Provinces

1. The Chairperson

   Notice of Intervention in Xhariep District Municipality in terms of section 139(2) of the Constitution, 1996, from the Free State MEC for Local Government and Housing.

   Referred to the Select Committee on Local Government and Administration for consideration and report.

COMMITTEE REPORTS

National Council of Provinces

1. Report of the Select Committee on Security and Constitutional Affairs on the Jurisdiction of Regional Courts Amendment Bill [B48B-2007], dated 24 June 2008:

The Select Committee on Security and Constitutional Affairs, having
considered the subject of the Jurisdiction of Regional Courts Amendment
Bill [B 48B - 2007] (National Assembly – sec 75), referred to it,
reports the Bill with proposed amendments, as follows:


                       CLAUSE 4

1. On page 4, in line 36, after ‘if” to insert:

     one or more places have been appointed in terms of section 2(1)
     (iA) within the regional division in respect of which the
     magistrate in question had been appointed for the adjudication of
     civil disputes, and