TUESDAY, 17 NOVEMBER 2009 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at 14:02.

The Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

The CHAIRPERSON OF THE NCOP: Order! Hon members, I have been informed that the Whippery has agreed that we will not have motions, except for the motion printed on the Order Paper.

We will now proceed with questions as printed on the Order Paper. Now, if there are follow-up questions, I urge hon members to phrase their questions precisely, rather than give long preambles that waste time. Where time is concerned, I am going to be a bit strict today. Hon members will see we have a very long agenda, so we will have to try to stick to the time as set out.

Where’s Mr De Beer? Hon member, in response to your question, Question 63, the Minister has written a letter informing me that she will unfortunately not be available today, as the President has requested her to perform some other function. I asked that you be sent a message to this effect. The Minister has written a response in reply to your question, and I have ordered that it be copied to all the members. Are you happy with that?

Mr C J DE BEER: Chairperson, I received the Minister’s answer in response to the question and I would like to inform the House that I am taking this issue to the Northern Cape province’s economic summit on 30 November 2009 for it to be tabled there. The Minister will be present at that occasion.

The CHAIRPERSON OF THE NCOP: All right.

                      QUESTIONS FOR ORAL REPLY

                              ECONOMICS

                              Cluster 4

MINISTERS:

Success of Construction Industry Development Board in ensuring sustainable growth and empowerment in previously disadvantaged areas

1. Mr H B Groenewald (DA) asked the Minister of Public Works: Whether there has been any success with regard to the Construction Industry Development Board, in ensuring sustainable growth and empowerment in previously disadvantaged areas; if not, why not; if so, what are the relevant details? CO183E

The MINISTER OF PUBLIC WORKS: Chairperson, noticeable and positive changes have taken place in the sustainability and empowerment of previously disadvantaged contractors. Although trends have varied across various classes of work of the Construction Industry Development Board, CIDB, as well as contractor grades and ownership categories, the profile of black ownership of contractors has shown absolute growth between 2006 and 2009.

These are the details with regard to this growth: 11% in the CIDB grade 7 in general building. This has gone up from 2006, when 53% of black ownership in grade 7 in general building was recorded, to 65% currently. There were 20 black-owned contracting grade 7 enterprises in 2006, and there are 102 black-owned grade 7 contracting enterprises currently. There were 275 black-owned grade 4 contracting enterprises in 2006, and the number has risen to 597 black-owned grade 4 contracting enterprises currently.

Similar trends have also taken place in other CIDB classes of work, such as civil engineering, women ownership, youth and the disabled. Much of this growth can be attributed to government interventions, as well as interventions by the CIDB. These include, among other things, government’s enhanced focus on infrastructure spending; government’s targeted procurement policies, including the Preferential Procurement Policy Framework Act, PPPFA; the CIDB’s support to government interventions; the strengthening of public sector infrastructure delivery capacity supported by the Infrastructure Delivery Improvement Programme, IDIP; targeting of contractors, made possible through the CIDB’s register of contractors; procurement reform led by the CIDB and their procurement guidelines and practices; and encouraging contractor development of previously disadvantaged contractors through the construction contact centres, or triple Cs, established by the CIDB and Public Works.

Memoranda of understanding have been signed with financial institutions including First National Bank, Absa and Standard Bank – that is, three out of the four big banks. Specific interventions in the national emerging contractor development programme to support emerging contractors have been launched, using successful projects with eThekwini Metro, the South African National Roads Agency Limited, Sanral, and others. Thank you.

The CHAIRPERSON OF THE NCOP: Before I continue with any supplementary questions, I recognise the President of the Senate of the Democratic Republic of Congo and his entourage. They are seated right opposite me in the Chairperson’s gallery. [Applause.] They are on a bilateral visit to the NCOP during which we will be sharing some ideas on how to run our parliamentary issues. I wish them well during their stay in the country. Thank you, sir; we are honoured by your presence.

Stemming of job losses and increasing of long-term job opportunities

1. Mr Z Mlenzana (Cope) asked the Minister of Public Works:

   (1) Whether his department has been able to stem job losses in respect of long-term and permanent employees during the past six- month period for which information is available; if not, why not; if so, what are the relevant details;

   (2) whether his department has been able to reverse the trend by increasing long-term job opportunities either of its own accord or through discussion with the private sector, other government departments and/or agencies; if not, why not; if so, what are the further relevant details? CO226E

The MINISTER OF PUBLIC WORKS: Chairperson, the Expanded Public Works Programme, or EPWP, is an important element in government’s capacity to provide employment for the poor, who are not part of the formal labour market in South Africa.

This position was reinforced in the framework document for South Africa’s response to the international economic crisis, which was adopted by Nedlac’s social partners in December 2008. The EPWP prioritises programmes that provide regular, predictable and ongoing employment.

In the infrastructure sector, the programme is expanding on maintenance programmes that will provide ongoing employment. For example, the Zibambele programme in KwaZulu-Natal has been implemented successfully.

In the social, environmental and cultural sectors, many of these programmes are ongoing, since they provide the needed social and environmental services that are continuous and not time-bound.

The programme is also accelerating the roll-out of the community works programme. This is an innovative programme that involves local communities in deciding on the work that must be done and then selecting unemployed members of the communities, who are guaranteed work for two days a week. By the end of September this year, 223 552 work opportunities had been created.

The EPWP is designed to be a social safety net to cover people during periods of unemployment and provide work for those who never had the opportunity to work. It is common knowledge that the state alone cannot provide jobs, but it can create the enabling conditions for job creation.

Through the EPWP, the state consciously intervenes by delivering needed infrastructure and social services and, at the same time, provides an opportunity for the unemployed to earn an income through productive work by contributing to their communities. In some cases these jobs are short-term jobs, in that they are the product of government-designed infrastructure projects in a way that maximises the use of labour. This will allow people to be involved in the numerous infrastructure projects that are implemented across the country to address infrastructure backlogs. Thank you.

Mr W F FABER: Chairperson, I would like to know, after these people have been trained in the EPWP projects, they are placed on a database through which they will later be able to find jobs? Thank you.

The MINISTER OF PUBLIC WORKS: Chair, I would like to thank the hon member for the follow-up question.

Yes, before the programme starts. Let me give you an example. Last week, we launched the Food for Waste programme in Kokstad. Everybody who was registered to participate – 100 people were enrolled – underwent two days’ training. This was necessary because, while one might think that it is easy to handle waste, there is hazardous waste as well.

So, it might be good if, via the committee in the NCOP, you ask our department to present the enterprise development that we have for EPWP projects. Allow me to give hon members an example of this: In the Working for Water project, 3 322 small co-operatives were formed, so it is not the end of everything once the government programme comes to an end. These people can provide a further service and employment for themselves by being entrepreneurs. That is already being looked at by Public Works. It is, however, a comprehensive and detailed presentation, which I think the committee should invite us to make. Thank you.

Mr K A SINCLAIR: Chairperson, I just want to ask the hon Minister whether government is on track with the creation of 500 000 new jobs before the end of this year.

The CHAIRPERSON OF THE NCOP: Hon Minister, I was just checking whether that really is a follow-up question. [Laughter.]

The MINISTER OF PUBLIC WORKS: Yes, Chairperson. [Laughter.] I think the figure I gave was 223 522. That was at the end of September and, at that particular time, when we released those figures, there were another 80 000 that had to be verified. On the basis of those figures, I think the projections are clear that we are going to make our target. Thank you.

           Details on eradication of mud schools programme 66.   Mr Z Mlenzana (Cope) asked the Minister of Public Works:

  (1)   Whether his department or the government has (a) a programme and
       (b) a budget in place to rebuild schools that were built with
       mud bricks; if not, why not; if so, when will the rebuilding
       programme begin, especially in the Eastern Cape and Limpopo;


  (2)   what (a) are the relevant details for the rebuilding programme,
       (b) are the timeframes for the completion of the project and (c)
       amount has been budgeted for in respect of rebuilding each
       school?                      CO227E

The MINISTER OF PUBLIC WORKS: Chairperson, I thank the hon member for asking this question.

Yes, there is a government programme for the eradication of mud schools and other inappropriate structures. This programme was identified as a national priority in the President’s 2008 state of the nation address.

The national Department of Public Works does not administer the budget for the programme. However, a budget of R2,7 billion was initially allocated to the Department of Education over the 2009-11 MTEF period as additional funding for infrastructure development, with a particular focus on the eradication of unsafe, undesirable and mud structures through the EPWP. The Independent Development Trust, IDT, board of trustees approved a contribution of R150 million in 2007 for the eradication of mud schools.

The IDT has managed the implementation of this programme, which includes 39 projects across eight provinces. Of these, 26 projects, 16 schools and 10 toilet projects have been handed over to the education departments of the Eastern Cape, Limpopo, KwaZulu-Natal, Mpumalanga, Free State and North West.

To date, over 5 600 learners from pre-primary to Grade 12 have benefited from the programme, through the construction of 126 classrooms, 27 specialist rooms, computer centres, libraries, laboratories, multipurpose centres, early childhood development centres and 256 toilets.

The Eastern Cape department of education is also implementing a mud schools eradication programme that is not funded from the R2,7 billion programme and the IDT has been appointed as implementing agent for 45 projects. To date, 38 classrooms, 9 specialist rooms and 59 toilets have been completed. The total allocation to the IDT for this programme was R510 million.

To enhance the learning environment, the IDT is providing additional facilities beyond the normal construction scope, including computer laboratories in seven schools, furniture in 13 schools, waste water treatment to allow water recycling for irrigation in four schools, and solar power to three schools.

The implementation of the IDT-funded programme, including the additional facilities, will be completed during the 2009-10 financial year. The IDT has been appointed as implementing agent for five provincial programmes, of which four have confirmed budgetary allocations for this financial year. The total of that is R188,5 million out of a total national allocation of R800 million.

The IDT is currently implementing 53 projects, of which five have been handed over to the Department of Education, and of which 18 are currently under construction. A total of 19 classrooms, specialist rooms and 49 toilets have been completed to date.

The needs of each school vary considerably, with some schools requiring full reconstruction and others only the addition or replacement of certain buildings. Also, school sizes vary considerably, as do material costs due to location. Budget allocation is therefore based on a pre-assessment of each individual school’s needs. I thank you.

Mr Z MLENZANA: Chairperson, I would like to ask the Minister whether he would consider it a nightmare if his department, the Department of Public Works, tried to get back the mandate of actually building schools – particularly in this programme – without negating the fact that the budget is with the Department of Education. Thank you.

The MINISTER OF PUBLIC WORKS: Chairperson, I think it could be done by agreement. There is no other legal mechanism for us to do this because we must remember that they are concurrent functions. This particular function is a qualified function. In Schedule 4 it says that the provincial department of public works must provide that service.

There have been informal discussions between the national Minister of Education and me, and we are going to see whether we can have joint Minmec meetings where we determine how we can assist the provinces in the delivery of this. But it certainly wouldn’t be a nightmare and I think it is something that we should do.

Allegations regarding National Lottery Distribution Trust Fund and inquiry into administrative challenges experienced

1. Prince M M M Zulu (IFP) asked the Minister of Trade and Industry:

   (1) Whether his department has been informed of allegations in a media report regarding a certain organisation (name and details furnished); if not, what is the position in this regard; if so, what are the relevant details; (2) whether he or his department has put any measures in place to rectify the situation; if not, why not; if so, what measures;

   (3) whether his department will consider conducting an inquiry with regard to the nature of administrative problems experienced by the recipient organisations in accessing lottery funds; if not, why not; if so, when will the inquiry be conducted;

   (4) whether his department or the government has any plans to assist recipient organisations providing essential support services to needy communities, including children and HIV/Aids organisations, in the event of nonpayment of their grants; if not, why not; if so, what plans? CO231E

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Chairperson, the Minister is aware of some allegations regarding the National Lottery Distribution Trust Fund, NLDTF, and the difficulties expressed by organisations in accessing the funds and receiving timely payments where grants have been approved.

Based on this allegation, the Minister initiated a round table meeting involving the National Lotteries Board, the distribution agencies and the Ministries responsible for sport, arts and culture and social development. At this round table meeting, challenges were identified, most of which were administrative in nature.

A subcommittee was established to propose measures to address these administrative challenges. The subcommittee agreed on a number of measures, including revising the grant management process to fast-track applications and facilitate speedy processing, as well as streamlining processes for approval of payments.

These measures are currently being implemented and are expected to bring about a significant improvement in the turnaround time. The other important measures relate to the speed with which inspections should be conducted, as payments are sometimes conditional. For a positive inspection report, the subcommittee recommended that the template for inspection be revised to be more focused on matters that pose a risk to the release of the grants and not be broad and general, as it currently is.

The subcommittee also recommended the strengthening of the administrative capacity within the National Lotteries Board to deal effectively with publications. These measures are currently being implemented by the National Lotteries Board as a measure to increase access to funds by needy organisations.

The Minister is in the process of issuing regulations to remove the requirement for applicants to provide audited financial statements for the preceding two years. This requirement has proved to be a hindrance to many needy organisations which may not have audited financial statements due to various factors, including the size of the organisation. Therefore the requirement will be relaxed, particularly for first-time applicants. The regulations are in the process of being consulted upon with various stakeholders and will be published for general public comment in due course.

Lastly, the department has enquired about a number of allegations made by organisations and these have been addressed. These enquiries are addressed on an ongoing basis, but with the process mentioned above, it is expected that these challenges will be addressed effectively.

The subcommittee has also recommended to the National Lotteries Board that it conduct an audit of all applications received to date in order to identify those that may be pending so that they can be attended to and finalised. The results will be made available to the subcommittee in December 2009. This will assist the department to address the cases that may be outstanding. I thank you.

Number of flights procured by Department and Ministry of Trade and Industry in September 2009

1. Mr T Harris (DA) asked the Minister of Trade and Industry:

   (a) How many flights were procured by his Ministry and/or his department for use by departmental officials in September 2009, (b) what were the reasons for procuring each of these flights and (c) what was the total cost of all these flights? CO238E

Mr T HARRIS: Chairperson, I move that Question 68, which is my question, be converted to a question for a written reply. If you look at the question, it is not appropriate for an oral response. I would be quite happy to receive a written reply from the Deputy Minister.

And while I’m standing, let me add that on Question 69, the next one, I have had a word with the Chairperson about the reason it was scrapped from the Question Paper. He said he would get back to me but I just wanted to reiterate that that question was appropriate for oral response. For some reason, it was scrapped from the Question Paper. So I await a response as to why.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, for the benefit of all the members here, we will ask the Minister to actually give a reply to Question 68. [Interjections.] Mr Watson, do you have anything to say? No? Please proceed, Minister.

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms B M Ntuli): Chairperson, the reply is as follow: With regard to the first part of the question, 492 domestic and international flights are included. With regard to the second part of the question, the mandate of the DTI, particularly in relation to trade, investment and export promotion, requires extensive international interaction. In this regard, all travel was in connection with official business and executed in accordance with the departmental travel and transport policy and the guidelines in the ministerial handbook. Finally, with regard to the third part of the question, the amount is R3 549 599, 66. Thank you.

Discussion on agreements to deregulate operation of African airlines in the airspace of African countries

1. Mr R A Lees (DA) asked the Minister of Public Enterprises:

   Whether she and/or any members of her department have entered into discussions with authorities of African countries and/or the African Union to secure agreements to deregulate the operations of African airlines in the air space of African countries; if not, why not; if so, what are the relevant details? CO240E

The MINISTER OF PUBLIC ENTERPRISES: Deputy Chairperson, neither I nor my department have entered into discussions with the authorities of African countries and/or the African Union to secure agreements to deregulate the operations of African airlines in the airspace of African countries. Both state-owned airlines have extensive African route networks. South African Airways operates in 20 African countries, while SA Express operates in six African countries connecting to the domestic and intercontinental network of SAA, which is based at its hub airport, O R Tambo International Airport.

Both SAA and SA Express are licensed by the International Air Licensing Council to operate African routes established by means of bilateral air service agreements negotiated by the Department of Transport and concluded by my colleague, the Minister of Transport, who is promoting the deregulation of inter-African air services. Whilst the Department of Public Enterprises is consulted on these matters, this remains the mandate of the Minister and Department of Transport. As Minister of Public Enterprises I, therefore, have no authority to pursue air service negotiations with other countries. Thank you.

 Upgrading of national roads in Mpumalanga and co-operation between
          provincial and national government in this regard

1. Mr A Watson (DA) asked the Minister of Transport:

   (1) (a) What progress has been made with the upgrading of the national roads in Mpumalanga and (b) what is the co-operation between his department and the provincial government of Mpumalanga in this regard; (2) whether he will make a statement on the matter? CO241E

The DEPUTY MINISTER OF TRANSPORT: Deputy Chairperson, I thank the hon Watson for the question. The SA National Roads Agency Limited, Sanral, is the agency that reports to the Department of Transport and is responsible for the country’s proclaimed national roads.

I have a list of some eight roads that are currently under construction in your province, Mpumalanga. I won’t read the whole list but it includes the R37 between Sabie and Nelspruit; the N2 between Camden, Piet Retief and the KwaZulu-Natal and Mpumalanga border; and so on and so forth. We will obviously supply the full list.

There is another list of some six roads where construction has recently been completed. The list includes, amongst other things, some 30 kilometres of the R23 between Volksrust and Perdekop, the R23 between Rietfontein and Greylingstad, and so on. And then there is another list of some 18 programmes where construction is programmed to start in the next 12 to 24 months.

In some cases we are at the design phase, and in other cases we are still at the planning phase. This list includes some 30 kilometres of the R23 from Perdekop to Platrand, etc. We will provide the full list. All of the national roads within the network managed by Sanral have routine road maintenance contracted during the day-to-day actions necessary to keep the roads trafficable.

With regard to 1(b) of the question, the national and provincial governments are jointly responsible for the road network at the national and provincial levels. Sixteen provincial infrastructure plans are in place to assist provinces with managing and maintaining the infrastructure network.

With regard to part 2 of the question, the Minister of Transport is indeed planning a visit to your province, the Mpumalanga province. Arrangements in this regard have been made with the MEC for roads and transport in Mpumalanga, and also with the Mbombela Municipality. Announcements on key projects in Mpumalanga will be made during Minister Ndebele’s visit. Thank you, Deputy Chairperson.

Mr A WATSON: Madam Deputy Chairperson, it would be unrealistic of me to ask the Deputy Minister about the number of potholes in these roads, so I’ll await the written replies. I thank him for attending to the question so carefully. Thank you, Minister.

Role of department in addressing customs clearance congestion at border- post facilities between South Africa and Mozambique

1. Mr A Watson (DA) asked the Minister of Transport:

   Whether his department will play any role in addressing the serious problem of customs clearance congestion at the border-post facilities between Lebombo, South Africa and Ressano Garcia, Mozambique; if not, what is the position in this regard; if so, what are the relevant details? CO242E

The DEPUTY MINISTER OF TRANSPORT: Chairperson, the Department of Transport is represented in the Border Control Operational Co-ordination Committee, BCOCC. It’s an interdepartmental structure which is responsible for co- ordinating the activities and plans of various government departments and agencies that are operating at the border crossings.

This particular co-ordinating committee, the BCOCC, is under the leadership of Sars and is responsible for the implementation of a one-stop border post at the Lebombo-Ressano Garcia border post, which you were specifically asking about. The construction work on the South African side will commence in the next three months and will cover, amongst other things, the creation of a truck clearance facility which will be set back approximately eight kilometres outside the border crossing. There will also be a bypass road linking Lebombo to Ressano Garcia.

This will help to expedite the processing of freight trucks. The intention is to complete this phase by or before June 2010.

The Department of Transport is also providing input into the actual design of the border crossing to ensure that sufficient lanes, including fast lanes, are created to separate different types of traffic crossing the border.

The Department of Transport, through the Cross-Border Road Transport Agency, which falls under it, also provides inputs regarding the location of cross-border taxi and bus facilities in and around the border. We understand that the taxi facility is currently located right at the border gate and this contributes to the conflict between passengers and vehicle traffic.

There are a couple of other things we would like to mention. One of them is the rail issue where the Department of Transport, in conjunction with the Mpumalanga provincial government and Shosholoza Meyl, were in discussions to revitalise the Komatipoort rail facility. The aim is to divert at least some of the cross-border passengers as well as cargo traffic onto rail and off the road.

Finally, the Department of Transport is in the process of developing a freight movement optimisation plan for all major border crossings, which includes the Lebombo crossing. The intention is to ensure an unencumbered flow of both passenger and cargo traffic at these border crossings. Thank you.

Mr A WATSON: Chairperson, I would like to thank the Minister for the comprehensive answer.

The whole concept of the one-stop border post was initiated by the MCLI, the Maputo Corridor Logistics Initiative, that was started way back by hon Phosa. I know that they started this initiative because I worked with them quite closely and I want to ask if there is any co-operation between the Minister’s department and the MCLI, which is a body that is quite active.

If the Minister is not in contact with them, I would suggest that he does get in touch with them. I say this because this is a very important aspect, not only because of the traffic but also because of the crime that takes place at this border post, as well as drug and human trafficking. We really need action there as a matter of urgency. Thank you.

The DEPUTY MINISTER OF TRANSPORT: Chairperson, I cannot answer categorically yes or no. I am sure there is co-operation and I certainly hope so. The point that was raised by the hon member has been noted and I will refer it to my department and particularly the officials involved in this process.

I just want to add that you would have seen that the World Bank, during the course of this week, published an interesting report on infrastructure in Africa. It said that often the infrastructure is not bad, but when it hits border-crossing posts, time saved on building decent infrastructure is consumed in costly, problematic and poorly designed things. This certainly also applies to some of our cross-border areas.

Thank you for that suggestion; I will certainly follow it up.

Applications submitted to SA Bureau of Standards and processing of these applications

1. Mr K A Sinclair (Cope) asked the Minister of Trade and Industry:

   How many (a) applications have been submitted to the SA Bureau of Standards, SABS, for approval in the 2008-09 financial year, (b) of these applications have been granted, (c) of these applications will be completed by the end of the 2008-09 financial year and (d) have been carried into the 2009-10 financial year for approval? CO243E

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Chairperson, I would like to thank hon Sinclair for the question.

The reply is as follows: The South African Bureau of Standards, SABS, is the national body responsible for the development of South African national standards, Sans, in terms of the Standards Act, Act 8 of 2008.

The SABS, therefore, does not receive applications, but receives many enquiries in relation to the South African national standards. Most of the enquiries relate to the existing 6 489 national standards that are available.

The SABS also receives regular requests for the development of new South African national standards, or the amendment of the current national standards. These requests are filtered and prioritised in terms of national priorities.

In 2008-09, 643 new and amended South African national standards were finalised. A consensus process is used to develop them. The average time necessary for the development of a new South African national standard or the amendment of a current South African national standard is 18 months to 2 years.

Over the next three-year period, the SABS will focus on the standards development activities in South African national standards required by the sectors prioritised in the National Industrial Policy Framework as well as standards for the environment, energy efficiency and water efficiency.

The DTI and the SABS will also increase the SABS’s capacity and appropriately resource work with regard to the South African national standards. Thank you.

Targets set for foreign economic representatives and inclusion of these targets in investment and trade promotion targets set for Trade and Investment South Africa

1. Mr K A Sinclair (Cope) asked the Minister of Trade and Industry:

   (1) Whether his department has set any targets for foreign economic representatives, FERs, based in missions abroad with regard to investment and trade promotion; if not, what is the position in this regard; if so, what are the relevant details;

   (2) whether these targets are included in the investment and trade promotion targets set for Trade and Investment SA, Tisa; if not, why not; if so, what are the relevant details? CO244E

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Chairperson, again I would like to thank hon Sinclair for the question.

The reply is as follows: The DTI is implementing a detailed foreign economic office strategy that will allow this important instrument in the export and investment promotion value chain to perform optimally.

An important aspect of this strategy is the synchronisation of the business plans of the foreign economic offices with that of the DTI, including the targets and outcomes that the DTI has committed to in the Medium-Term Strategic Framework, MTSF.

These business plans are project-based and, in the case of investment and investment pipelines, R40 billion is set as a consolidated target for this financial year.

In view of the global economic downswing, export projects had to be substantially amended and a concerted effort is under way also to set quantitative targets for the foreign economic offices in this regard. These targets are in line with what Trade and Investment South Africa, Tisa, has committed itself to in its business plan and the MTSF. Thank you.

Mr D B FELDMAN: Chairperson, I would like to ask the Deputy Minister about the DTI representatives in the foreign missions. I would like to know how these representatives are trained in respect of the formulas to be followed when dealing with a request from a specific country to partner or trade with South Africa. Thank you. The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Chairperson, the answer to this question will be very substantive. I request that the hon member give me time to give the answer in written form, which I could send to him. Thank you.

Disbursement in terms of Framework for South Africa’s Response to the
               International Economic Crisis document

1. Mr K A Sinclair (Cope) asked the Minister of Trade and Industry:

   (a) What are the budget amounts for the 2009-10 financial year for his department to disburse in terms of the document titled Framework for South Africa’s Response to the International Economic Crisis, (b) to which (i) departments and (ii) state-owned enterprises will these amounts be disbursed and (c) how much has been spent up to 30 September 2009? CO245E

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Deputy Chairperson, the answer to Question 75 is: The department did not specifically budget for disbursement in terms of the document entitled Framework for South Africa’s Response to the International Economic Crisis.

However, with regard to the rules of the Small and Medium Enterprise Development Programme, SMEDP, incentive schemes were subsequently reviewed to accommodate firms that are in distress and cannot satisfy the original criteria on which their applications were approved. Notwithstanding the above, the Industrial Development Corporation, IDC, which is self-funding, is being utilised as the main source of funding in the response to the economic crisis.

For this purpose, the Industrial Development Corporation, IDC, has set aside R6,1 billion over the period of the 2009-10 and 2010-11 financial years. The Department of Trade and Industry, DTI, does not disburse any funds to departments and state-owned enterprises.

With respect to the SMEDP schemes, the department has disbursed over a billion rand in the 2008-09 financial year. And for the period 1 April to 30 October 2009, a total of R758 million has been disbursed. These disbursements are inclusive of disbursements to firms in distress.

For the period 1 April to 30 September 2009, the IDC has approved R988 million for companies in distress as a result of the economic crisis. I thank you, Chairperson.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Gunda, could you allow all other members to be attentive and stop having your own conference over there. Thank you.

Mr K A SINCLAIR: Deputy Chairperson, thank you to the Deputy Minister for her answer to the question.

I want to raise the following question: Given the enormity of the economic crisis and the impact that it has had on South Africa, wouldn’t the Minister believe that it was an oversight from the department’s side not to directly budget for this to assist in helping to address the crisis?

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Deputy Chairperson, thank you for the follow-up question. I would like to say to the hon member, yes, there is this enormous crisis that has befallen South Africa. I’d also like to say to the hon member that owing to the resources that we have at hand, we couldn’t budget for everything, but we are surely trying our best to make sure that businesses that are in distress do not close shop. Thank you very much.

Mr T HARRIS: Deputy Chairperson, the framework document refers to the development of incentives for investments in the programme to create large numbers of green jobs. Now I gather from the Deputy Minister’s response that she won’t be able to give figures in terms of budget disbursements. If she can’t do that, can she update us on the status of the incentives to create these green jobs?

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Deputy Chairperson, for me to give you an extensive answer on the incentives that we have, I will need to do that in writing and give you all the incentives in relation to the co-operatives, small businesses and so on. That will require me to sit down and give all the incentives in writing so that I give the correct figures that you need. Thank you very much.

Provisions made with regard to promotion and adoption of energy- efficient and renewable energy technology in revised guidelines for the Enterprise Investment Programme, Manufacturing Investment Programme and Tourism Support Programme

1. Mr K A Sinclair (Cope) asked the Minister of Trade and Industry:

   What provisions have been made in the revised guidelines pertaining to the (a) Enterprise Investment Programme, EIP, and (b)(i) Manufacturing Investment Programme, MIP and (ii) Tourism Support Programme, TSP, with regard to the promotion and adoption of (aa) energy-efficient and (bb) renewable energy technology? CO246E

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Chairperson, the Enterprise Investment Programme, EIP, with its subprogrammes, the Manufacturing Investment Programme, MIP, and the Tourism Support Programme, TSP, is aimed at incentivising capital investment in the manufacturing and tourism sector.

From a review of past incentive programmes managed by the department, we have learnt that we should not try to achieve too many objectives with one incentive scheme. In line with this, the department has tried to ensure that the EIP remains focused. The MIP prioritises investments that are job- intensive and those that are in sectors that the Department of Trade and Industry has prioritised.

The TSP prioritises investment that creates decent jobs outside the traditional tourism clusters of Johannesburg, Durban and Cape Town. There are other incentive instruments that will be available, with the emphasis on promoting the adoption of energy-efficient technologies such as the industrial policy tax incentives under section 121 of the Income Tax, Act 58 of 1962. Thank you.

Mr K A SINCLAIR: Chairperson, I want to enquire from the Deputy Minister if the department is satisfied with the tourism support programme, with a specific emphasis on the impact that it might have on emerging entrepreneurs regarding the 2010 Soccer World Cup.

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Chairperson, as the department, we would like to see more tourism businesses coming up. We will never be satisfied with the existing ones. We would like to see more, especially small and medium-sized tourism businesses.

In respect of that, I would also like to say that we really think that we must work harder to make sure that this happens. For that reason I want to make it clear that we are totally unsatisfied that we have covered all the sectors of our communities in relation to tourism businesses in South Africa. Thank you.

See also QUESTIONS AND REPLIES.

                      SUSPENSION OF RULE 239(1)

                         (Draft Resolution)

The CHIEF WHIP OF THE COUNCIL: Chairperson, I move the draft resolution printed in my name on the Order Paper, as follows:

That Rule 239(1), which provides, inter alia, that the consideration of a Bill may not commence before at least three working days have elapsed since the committee’s report was tabled, be suspended for the purposes of consideration of the Adjustments Appropriation Bill [B 13 – 2009] (National Assembly – sec 77) and the Repeal of the Black Administration Act and Amendment of Certain Laws Amendment Bill [B 15 – 2009] (National Assembly – sec 75) on Tuesday, 17 November 2009. 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 accordingly agreed to in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - MEDIUM-TERM BUDGET POLICY STATEMENT

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON APPROPRIATIONS - MEDIUM-TERM BUDGET POLICY STATEMENT

The DEPUTY MINISTER OF FINANCE: Chairperson, when the Minister of Finance tabled the Medium-Term Budget Policy Statement, MTBPS, in the National Assembly on 27 October 2009, we once again reminded Parliament, and South Africans in general, that this was our statement of intent and that this was a policy statement intended to serve as a mechanism for Parliament to begin the engagement in the Budget process.

As we know, there are three stages at which Parliament can engage with the Budget process, namely that of influencing it, that of exercising oversight over it, and that of holding us to account.

The statement sets out the economic contexts and assumptions that inform the following year’s Budget as well as the framework in which the Budget is prepared. It has four components. The first is that of the fiscal framework; the second is that of government’s spending priorities; the third concerns the division of revenue among the spheres of government; and the fourth contains the tabulation of all the conditional grants to follow.

I want to take this opportunity to thank the NCOP for the thorough and yet speedy manner in which it has deliberated on the MTBPS. I would like to stress, as I have previously indicated, that this is an important process through which the opinions of the public and civil society can be drawn into the Budget process.

I would like to reaffirm our commitment as government to ensuring that, no matter what the situation, we will never compromise on the five major priorities as outlined in the manifesto of the ruling party. I also note that these priorities received widespread support and that the comments by various groups to the committee reaffirm the correctness of the approach.

I would like to repeat what these priorities are. The first is education, where we are focusing on improving the quality of the foundation phase of education. We are going to strengthen further education and training enrolment and we are also going to place a particular emphasis on teacher development and school-building. The second priority is that of health. Here we have focused particularly on fighting HIV/Aids and tuberculosis, the improvement of hospital management and implementing the National Health Insurance.

The third priority is that of creating sustainable jobs, implementing the framework agreement that government adopted with labour in February this year, accelerating the roll-out of the Expanded Public Works Programme, EPWP, Phase 2, and the reorientation of our business and industrial support measures to support job creation and prevent job losses.

The fourth priority is that of rural development. We want to implement a comprehensive rural development strategy that focuses on raising rural incomes, investment in rural infrastructure, supporting farmers and implementing land reform.

The fifth priority is that of fighting crime and corruption. We are going to focus on better integration in the sector, enhanced IT systems and increasing the number of personnel, particularly detectives and forensic specialists. We are also going to focus on better court case management.

This spending is broadly in line with the priorities and we welcome the suggestions made at the hearing as well as those reflected in the reports of both the Finance and Appropriations committees. We note, in particular, that rural development has featured quite high in that report. Land restitution has also been raised. We will also consider these matters in preparing the Appropriation Bill for next year.

We will also look seriously at proposals around water, at proposals around taking the EPWPs to rural areas, and at proposals supporting our municipalities in building capacity and making sure that service delivery is enhanced.

The issue of savings featured quite prominently in our MTBPS and in the reports. It is clear that there is an in-depth process under way. We have only started and we still have a very long way to go. We indicated that we were able, through savings, to identify R14,5 billion in the national departments and R12 billion in the provinces. This was made possible by making sure that we cut the frills and focus on the core functions of each department. It was also made possible by making sure that we root out corruption and all sorts of maladministration.

This process is about culture change. One of the initiatives involves improving the procurement outcomes. Here, centralising the procurement of some large projects was considered. In this regard, an agreement was struck with the Department of Health in which it was established that we are going to deal with their procurement as our pilot project. We want to reiterate that we need the support and the vigilance of Parliament as an institution in order for us to succeed in this quest.

We think the suggestion of the committee to review the conditions of the municipal infrastructure grant, MIG, is very useful. We will liaise with the Department of Co-operative Governance and Traditional Affairs to review these conditions. This process has already begun.

We are also concerned about the issue of land restitution. There is a significant gap between the allocated resources and the cost of completing the land restitution process.

We can assure you that we are working with Minister Nkwinti to find ways to complete this process as speedily as possible, given the resource constraints. Most of us agree that the present model is unaffordable and the Minister of Rural Development and Land Reform is exploring ways to achieve the same objective, but in a more affordable and cost-effective manner.

The latest employment data indicates that we have now lost close to a million jobs since the onset of the crisis. This is about 7% of the workforce and most of the people who have lost their jobs are young people, domestic workers and people in the informal sector.

Let me indicate that signs of a recovery are beginning to be seen but lots of uncertainty lies ahead. Positive signs can be seen in manufacturing and mining data, but consumption remains weak and business investment is still very low.

We pledge to work with Parliament to develop the capacity to process the MTBPS in terms of the new legislation and the Budget. We are also prepared to look at the timeframes for the Budget to make the parliamentary process more robust and useful. We agree that we need more oversight from Parliament in order to monitor the quality of spending and whether departments are taking measures to reduce costs and improve service delivery.

With these words I once again want to thank the committees for having worked on the MTBPS and want to say that I look forward to its implementation. Thank you. [Applause.]

Mr C J DE BEER: Chairperson, hon Deputy Minister and members, it’s a privilege to participate in this debate. On 27 October 2009, the Minister of Finance complied with section 28 of the Public Finance Management Act, which requires the Ministry and the Department of Finance to present to Parliament the multiyear budget projections and also to set out the Budget framework, fiscal policy, revenue projections, spending estimates, borrowing requirements and assumptions concerning debt interest cuts over the period.

The relevant committees of Parliament were assigned to process the Medium- Term Budget Policy Statement, MTBPS, and the Adjustments Appropriation and to present their recommendations and responses, in this case, to the NCOP today. The committee had to perform its duties within a very short space of time, given the parliamentary schedule. Joint meetings were held with the Standing Committee on Finance in the National Assembly. Substantive comments and useful inputs were received from business, organised labour and respected economists.

The committee reflected on the following: the state of the economy, economic policy outlook, fiscal and monetary policies, spending priorities and the Budget deficit. The MTBPS was tabled in the biggest economic downturn since the Great Depression. It is an environment that is hostile to the poor and the emerging economies - and it is not their fault.

The economic downturn has required a co-ordinated global response that focuses on new approaches to governance, regulation and greater recognition of all role-players, including developing countries.

The closure of factories, small farms that fail, people who struggle to get by on reduced incomes - all of these sometimes lead to hunger. When hunger knocks at the door, then human dignity and survival are at risk.

As we speak, the economy is very slow in recovering, but it will take a long time and a tiresome process to come to where we want it. We must do things differently with less money to address our people’s needs. This also means taking tough decisions that will sometimes be unpopular.

We must commend the Minister of Finance and also the Deputy Minister on the fact that the country’s national framework response to the global crisis is indeed yielding positive results. Economic recovery can only be realised if proper and sound economic policies, with better co-ordination between all spheres of government, are implemented and monitored.

The committee commends the Minister and the Finance team for protecting key priority areas as outlined in the state of the nation address.

With regard to corporate South Africa, a few lessons can be learned about, firstly, unsustainable banking practices to maximise profit and huge bonuses to executives; and secondly, overvalued corporate assets and stock market shares. This led to high levels of debt and more unsustainable transactions in the world economy.

Goethe wrote, and I quote:

Knowing is not enough; we must apply. Willing is not enough; we must do.

And what must we do? We accept the MTBPS as printed and submitted to the committee and to Parliament by the Minister. But what do we do now?

The first thing is the creation of decent jobs. There must be a balance between welfare and work; we are not a welfare state. Do not abandon the inflation targeting now. Get consensus on the fight against corruption. As we sit here, from different political parties and backgrounds, let’s fight corruption.

We need qualified and quality teachers, doctors, engineers, chief financial officers and policemen - the people who form the frontline. We need a smaller administration and more operational people. We need to address the structure of the economy and address it seriously - the legacy of the economy we inherited. Progressive thinkers in the world and in South Africa must have a battle of ideas so that they can think and do things differently.

We must be bold and decisive in what we want to do and where we want to go. We must invest in fast-tracking public finance management skills. As parliamentarians, we must, through our various committees, vigorously monitor expenditure patterns in government departments and parastatals, and support Operation Clean Audit.

We should also do our oversight in our constituencies more seriously and thoroughly and address, as a matter of urgency, the mismatch between billions of rands being pumped into provincial coffers and the impact of this on the quality of people’s lives.

The focus must be on the core functions. A comprehensive expenditure and service delivery review per department must be done, specifically on education and health, to determine gaps and inefficiencies that must be addressed. We need to strengthen oversight roles and responsibilities through improved planning and tighter monitoring and evaluation.

It is important that interventions improve the performance of provinces as they relate to planning, monitoring and evaluation; and feed into the National Planning Commission and the Monitoring and Evaluation Unit in the Presidency.

Having considered the 2009 MTBPS and also conducted public hearings with the Standing Committee on Finance, the Select Committee on Finance made the following projections and recommendations: Firstly, the setting up of the Parliamentary budget office in the next term in order to support the work of the Finance and Appropriations committees, especially during a value-for- money oversight and accountability exercise. It would therefore be ideal for the director of the parliamentary budget office to be appointed in January 2010.

Secondly, we recommend the strengthening of the working relationship amongst parliament’s committees and Statistics SA, the newly established Ministry for performance monitoring and evaluation and the Co-operative Governance and Traditional Affairs department in order to design and implement a co-ordinated approach to value-for-money oversight and accountability.

The committees should be provided with sufficient capacity in terms of administrative, content and research support in order to fulfil their legislative and oversight function.

The parliamentary programme should allow adequate time for parliamentary committees to engage with the MTBPS. The NA and the NCOP should expedite the process of reviewing the current Southern Africa Customs Union, or Sacu, revenue formula. The distribution and transfer of revenue to other member states forms a critical part in terms of the amount of revenue the economy generates.

The new money bills amendment Act requires that members of this House, as a matter of urgency, take a keen interest in the Budget process as it gives Parliament more powers and clarity on how best we can perform our oversight and responsibilities.

Chairperson, I take the opportunity to ask this House to approve and adopt this report in the NCOP. I thank you. [Applause.]

Mr S S MAZOSIWE: Chairperson, first of all, let me, on behalf of the ANC, join the speakers before me in supporting the report on the MTBPS. Secondly, I want to say from the outset that we have sound economic policies. Our finances are in good hands and, therefore, the ANC, once more, supports the direction which the government is following with regard to economic policies. We are moving forward; we are prospering as a country.

The MTBPS 2009 sets out the policy framework that will inform the 2010 Budget allocation. It is an indication of how fiscal and monetary policies, expenditure and revenue will be structured over the next year. Therefore, the MTBPS represents government’s vision and set of priorities by means of which it intends to change the lives of our people.

It is important to note that the MTBPS looks into the following areas: the assessment of the economic climate; revision of the fiscal framework; the containing of government’s spending priorities; and the division of revenue among the spheres of government – national, provincial and local. We adopted this strategy in order to make sure that our policy brings certainty and predictability to all spheres of government, in so far as the Budget is concerned.

It is true that these days nobody wonders what the Budget for next year will look like; nobody wonders what the Budget will look like in two years’ time, because the ANC government has made sure that Budget reform in this country is taking root and is understood by everyone. Most importantly, everybody in the country is now able to take part in the Budget hearings and make inputs so that their lives can be improved on a daily basis.

It is, therefore, important for us to note that our country is moving in the right direction; the ANC is leading this pack in such a way that we are able to improve the lives of our people. I need to indicate, however, that we are discussing the MTBPS within the context of an economic crisis, as mentioned by the previous speakers.

We have been hit hard by the economic meltdown, but we are pleased to note that our government has already made certain interventions in order to save our economy. This has been explained by the Deputy Minister of Finance, who answered questions on economic development in the country when he alluded to a number of steps taken by our parastatals to assist our communities to relieve their economic plight.

Reduced revenue projections are envisaged for 2009, as a result of the economic downturn. We are also pleased and encouraged that, although this country is projecting a 1,9% growth in the economy in 2009, it will improve by 1,5% in 2010, according to figures supplied by the National Treasury.

China and India are probably two of the few countries that are projecting significant growth over the same period. We have read the documents supplied, again by the National Treasury, in which they are saying that China is projecting 8,5% and 9% growth in the economy in 2009 and 2010 respectively; and India 5,4% growth in 2009 and 6,4% in 2010. We, however, need to learn from the experiences of these emerging economic powerhouses and find out what it is that they have done correctly to realise this kind of growth.

The ANC has, however, looked into this economy and prioritised many areas that have been alluded to by the Deputy Minister and also by the chairperson of the committee, one of which is health. We need to improve the health profile of all South Africans. Access to health should be the concern of all citizens in this country. This matter is so serious that one day we should have a debate on it.

The president of America, President Obama, has succeeded in convincing Americans to adopt his health care plan, including insurance for the poor, something that has never been seen in America. Today they boast an insurance plan for the poor in so far as health care is concerned.

Sadly enough, in this country there are still people who are sceptical about the idea of making sure that health care is accessible to everyone. They go out to people and garner votes, and once the votes have been delivered to their parties, they pursue policies other than those that their constituencies would want to identify with. It is sad that we have such people in our country, in this day and age.

We need to intensify the fight against crime and corruption as alluded to, again, by the Deputy Minister and the chairperson. It is a scourge, and we need to close all the fronts so that criminals do not have a market.

We need to inform the police whenever we see criminal activities in our communities. We need to manage our resources very carefully, so that we can save a lot of money and redirect some of it to other programmes.

We have noted the improved government spending on electricity and infrastructure. If you go around the country, anywhere in the country, you will see roads being constructed and you will see massive road construction projects. Sometimes we come across stop-go controls and we wait for a few minutes in order to make sure that those people doing the work do it properly. We have seen airports and stadiums being built through this massive infrastructure investment in our country. In conclusion, the municipal infrastructure grant, MIG, projects need to be speeded up. Rural development is the cornerstone of the economic improvement of our rural communities. They will, after all, be the main beneficiaries of our hard-earned democracy. I thank you, Chairperson.

Mr T HARRIS: Chairperson, colleagues, the finance Minister and his team must be commended for doing an admirable job in a very difficult situation. A R70 million hole in the budget is a tough thing to fill. Unfortunately, it is not yet clear how we will be able to fill it or even if we will be able to fill it

The most alarming calculation in this Budget is that government debt, as a percentage of GDP, is now 30%, but it will rise to 40% in 2012. It hasn’t been at these levels since the apartheid administration managed us into a fiscal hole.

Of course, this figure is partially a reflection of the Minister’s stated approach to respond to a recession by maintaining the level of state expenditure - a response that the DA has supported in general. I say “in general” because we have serious problems with the fact that a large chunk of this expenditure will be ploughed into propping up poorly managed and often dysfunctional parastatals that should have been privatised long ago. The amounts concerned are staggering. In 2008-09, R200 billion worth of financial aid was provided to state-owned enterprises. Notwithstanding the dubious destinations of much of this government expenditure, we support the maintenance of spending levels during a recession as an important countercyclical strategy. The question is: What happens to the fiscal balance once the recovery kicks in? The answer is that the finance Minister and the Ministry will have to man up to the fact that expenditure growth needs to be seriously constrained from next year.

In this regard, the DA supports the finance committee’s reports in general, but cannot support the theoretical proposals in that they are clearly unaffordable. The programming Whip outlined some of them a few moments ago. In this regard, my one regret is that the fine proposals of the chair of the Finance committee were not included in the committee report. I hope he’s not nervous of putting forward his views in the sister committee of Appropriations, chaired by our young lion from the North West. This is because the budget deficit has doubled from February’s estimates to a massive 7,6% of GDP. This is completely out of line with other emerging markets and is similar to deficit levels in rich countries that have many more resources to cope with higher debt levels. Yes, France has a budget deficit of 8,2%, Japan has 7,7% and the euro area as a whole has 6,5%. But look at Brazil, Poland and Argentina. Brazil’s deficit is at 3,2%, Poland’s is at 2,3% and Argentina’s is at a humble 1%.

We are completely out of line with economies of a similar size and structure as ours. We have neither the natural resources nor the scale to easily work ourselves out of this debt situation, as developed economies do. More alarmingly, we are now the only economy in Africa that is shrinking. Every single other African economy is growing, but ours is shrinking by 1,9% a year. We are now a drag on the continent.

Of course, growth will return to the South African economy in time. With good management and a moderation of expenditure plans, Treasury will be able to see us back onto the path of fiscal sustainability. In the title to the first chapter of the policy statement, the Minister calls this objective “Supporting the Recovery”.

That’s all very well. But what kind of growth path will we return to? This is a million rand question for this administration. It’s a question implied in the second part of that title, which is “Transforming the Economy”. This is a question that the Treasury appears to have begun thinking about answering in this policy statement. This is because it is obvious to all that the jobs crisis remains our most pressing priority in South Africa. The old ideas we have rolled out for 15 years are not going to work. We need fresh thinking on creating what the statement calls “a massive expansion of employment”.

Firstly, we need thinking like my party’s proposals on opportunity vouchers to give young South Africans access to work and skills development. Secondly, we need wage subsidies to lower the cost of employment; and thirdly, we need tax incentives to stimulate job creation.

I am pleased to report that each of these proposals is in this document that we are debating today. If the hon members here haven’t read it yet, I encourage them to read it. There are three proactive responses to creating jobs that go far beyond the spin-heavy job opportunities of the EPWP, and the DA fully endorses their development into legislation.

These three policy ideas didn’t receive much press coverage, but they were bravely included in the statement by the Treasury that appears to have finally had enough of this country being crippled by an inability to employ our people.

Another brave inclusion was the extraordinary admission on page 23 of the statement - under the section “Global Lessons for Growth” that countries such as Australia and Korea, where prices and wages have adjusted more quickly to weak demand and rising unemployment, have been able to demonstrate a competitive edge.

I enquired about the policy implications of this statement in a question for oral reply that the Minister was meant to answer in this House today, but it was struck from the Question Paper under mysterious circumstances. Chair, you can be assured, as agreed between you and me earlier today, that I will ask the question again.

This is because the answer to this question, which is the reform of our real economy on the one hand, and on the other hand, our labour market to remove rigidities, is the key to a true transformation of our economy.

If the Treasury and other mainline economic Ministries like Trade and Industry, Economic Development, and the Ministry responsible for the planning commission can sort out their differences and appoint someone from among their ranks to drive this reform, then we will finally begin tackling unemployment in our country. I thank you. [Applause.]

UMntwana M M M ZULU: Sihlalo waleNdlu baba Mabhoko, iPhini likaSihlalo, mhlonishwa Ngqongqoshe nePhini lakho uMadlokovu, nabanye oNgqongqoshe abakhona namalunga ahloniphekile aleNdlu. Madlokovu, lesi sikhathi sesabiwomali sokuphela konyaka, yisikhathi esibaluleke kakhulu sokuthi kubhekelelwe thina esihlala emakhaya. Ngikusho lokhu nje ngoba mina ngihlala emakhaya, ezilalini- ezishiwo abaseKoloni. KwaNongoma yilapho ukuhlupheka kudlange kakhulu khona ngakho-ke kufanele nisibhekele impela ngoba laphaya eKhayelitsha babebhekwe kangconywana khona nakuba babebandlululwa nabo kodwa babengafani nathi thina esisemakhaya.

Sikholwa ukuthi ngeke siyithole imisebenzi thina ngoba akukho mafemu angakhiwa le ngakithi, ngakho-ke kufuneka nibheke emkhakheni wezolimo kube yiwona enifaka imali kakhulu kuwo ukuze abantu bakithi bazoba nokudla badle basuthe, bezilimela le emakhaya. Ayikho enye indlela esingabuye senze ngayo ngoba ayikho imisebenzi emakhaya ngoba awekho amafemu.

Ifemu yethu enkulu esiye sithembele kuyo uhulumeni uqobo oyaye asiqashe sibe ngomabhalane emahhovisini akhe. Ngizomshayela ihlombe uhulumeni wakho uma sengibone kahle ukuthi izidingo zabantu ziyafezeka ngokuthi kusetshenzwe ngokuhlanganyela. Kodwa-ke uhulumeni udinga ukulekelelwa ngazo zonke izindlela – ngokuthi uma esebheda, ashaywe kahle agxekwe ngendlela ekahle eyakhayo. Ngoba uma ezogxekwa ngokungakhi, mina njengendoda yakwaZulu angigxeki umuntu kodwa ngingenakho engikubekayo okungcono okungenziwa. Ngiyahambisana nalesi sabiwomali esikhona, kodwa ngicela ukuthi nibhekelele izindawo zasemakhaya. Indaba yamapulazi impela angiyizwa kahle, ngoba asinawo amapulazi ezindaweni zasemakhaya kodwa sinezindawo zokulima. Uma nithi nizobheka amapulazi thina esingebona abalimi nizosenzenjani? Yizinto ezifana nalezo mhlonishwa Ngqongqoshe ekufanele nizibhekelele kakhulu kubantu bakithi. Ngiyabonga. [Ihlombe.] (Translation of isiZulu speech follows.)

[Prince M M M ZULU: Chairperson of this House hon Mabhoko, Deputy Chairperson, hon Minister and your deputy hon Madlokovu, other Ministers present here as well as hon members of this House. Madlokovu, this year-end budget allocation is very important because it comes at a time when we, the people, who are living in the rural areas are supposed to be catered for. I am saying this because I live in the rural areas – ezilalini, as they are referred to by the people of the Eastern Cape. Poverty is rife in KwaNongoma; therefore you need to really look out for us because in Khayelitsha they are better catered for. Although they were also discriminated against, their situation was not the same as that for us who are living in the rural areas.

We think that we will never find employment as factories cannot be built in our area. You therefore need to look into the agricultural sector and you need to allocate more funds to it so that our people can have food to curb their hunger, through ploughing out there in the most remote areas. We have no other alternatives because there are no employment opportunities in the rural areas because there are no factories.

The biggest factory on which we pin our hopes is the government itself, as it appoints us as clerks in its offices. I will applaud your government once I have seen that the needs of the people are being met through working together. However, the government needs to be supported by all means – but it also needs to be called to order and criticised constructively if it is going astray. Because if it is destroyed, I as a man from KwaZulu-Natal will not just criticise someone without coming up with something better. I support this Budget allocation, but I am requesting you to cater for the rural areas. I really do not understand the issue regarding farms, because we do not have farms in the rural areas but ploughing fields. And if you say you are going to consider the farms, what are you going to do about us who are not farmers? It is such issues, hon Minister, that you must look at when it comes to our people. Thank you. [Applause.]]

Mr M W MAKHUBELA: Chairperson, Ministers and the honourable House, at this time, when people are losing jobs left, right and centre, government’s single most important priority should be saving the jobs that are still there and creating new jobs in sustainable industries. With a projected growth of 1,5% in 2010 - the year of the World Cup - very few of the unemployed will find work.

Now is the time for this government to implement a massive solar geyser programme. This will provide work, inject money into the economy, reduce electricity demand, enhance health, help households facing increased electricity bills and protect the environment. An expenditure of such a nature will help 100% of our people and prepare our nation to reach out into Africa with solar solutions for the continent.

Cope advocates an activist state, and this is the first thing we would have done. South Africa has always been identified as a diamond country, yet what are we doing in respect of setting up industries to polish the super diamonds we have in this country? The demand for super diamonds is going to grow by leaps and bounds.

Cope is satisfied with the salary adjustments which are being budgeted for to accommodate occupation-specific dispensation agreements. Our party welcomes the R12 million expenditure.

Of great concern to us, as Cope and the select committee, is the lack of spending on infrastructure in various departments. Respective Ministers and directors-general should have their travel, administrative and personnel budgets for the new year slashed by a corresponding amount. This amount should then be added to the unspent amount to double it. We take a very dim view of departments that do not prioritise spending on infrastructure. This House must find a way of censuring them.

This year, R524,9 million is being given to Public Works. About a quarter of this amount will be used to renovate houses of Ministers and to upgrade their offices. Who will believe that this is unforeseen and unavoidable expenditure? Let us be partners, please, Minister. Let us have the exact details of what is happening.

Now I come to Rural Development and Land Reform. Here the budget was sliced from R4,4 billion to R1,7 billion. As usual, rural development is taking a back seat. This government’s failure to promote economic growth in our rural areas will see more people migrating into towns and cities. Most towns and cities cannot meet the service demands of these people.

Honourable House, I now come to Education. As government is pulling back from OBE, it is now going ahead with OBG. [Interjections.] Thank you. [Time expired.]

Mr T E CHAANE: Chairperson, hon Deputy Chairperson, hon Deputy Minister, hon members, on 27 October 2009 the Minister of finance hon Pravin Gordhan, tabled a Medium-Term Budget Policy Statement, outlining the budget priorities of government for the medium term. The MTBPS was tabled together with the Appropriation Bill. These were later referred to the Select Committee on Appropriations for consideration in terms of its mandate. Among its responsibilities in terms of the MTBPS, the committee is required to consider and report on the following: the spending priorities of national government for the next three years; the proposed division of revenue between spheres of government and between arms of government for the next three years; and the proposed substantial adjustments to conditional grants to provinces and local government, if any.

In his foreword to the MTBPS, the Minister of Finance pointed out that as a country our constitutional vision enjoins us to, and I quote:

… improve the quality of life of all citizens and free the potential of each person as we build a nation based on economic values, social justice and human rights.

This is in line with the ANC’s understanding that the most pressing challenges that confront our people today are unemployment, poverty and inequality. It reiterates the party’s determination to halve unemployment and poverty by 2014 and to substantially reduce social and economic inequalities. The Minister made sound and realistic assurances and calmed the waters by presenting one of the most balanced policy statements during very difficult times.

The fiscal framework makes available an additional R78 billion for spending. Additional savings of about R14,5 billion at national level and R2,6 billion at provincial level are expected to contribute to financing new priorities. The revised total expenditure estimate for 2009-10 is R781, 4 billion, growing to R834,9 billion the following year and reaching R954 billion in 2012- 13.

It increases baseline allocations for departments, provinces and local government, with departments considered strategic to policy implementation getting a fair share of the cake.

Although this results in deficits for the coming three years, thus putting our country into debt, it is encouraging that most economists agree that, as much as the amount is large by South African standards, it is not particularly large within the current crisis response paradigm.

Even the economists from Idasa support this view by saying that:

South Africa’s response remains consistent with that of the G20 countries and envisaged levels of indebtedness are not in excess of that of the majority of these countries.

So the DA should not worry; we are on course.

Chairperson, I stand here to report, without any fear of contradiction, that the budget priorities over the medium term support policy priorities, that is, social spending, infrastructure expansion, the fight against crime, education, health and job creation. This shows that our government is committed to continued spending even if growth is expected to recover slowly and tax revenue even more slowly. It indeed does not have a choice given the poverty, the inequality and the unemployment that continue to mar our democracy.

Both the Adjustments Appropriation Bill and the MTBPS give hope to our people that many promises made by the ANC during the election campaign will be achieved. They firmly and convincingly lead us on a path towards the achievement of commitments made by the President during his May 09 inauguration speech, when he had this to say to the nation and the world, and I quote:

For as long as there are South Africans who die from preventable diseases; for as long as there are workers who struggle to feed their families; for as long as there are communities without clean water, decent shelter or proper sanitation; for as long as there are rural dwellers unable to make a decent living from the land on which they live; for as long as there are children who do not have the means or the opportunity to receive a decent education, we shall not rest, and we dare not falter, in our drive to eradicate poverty.

This policy directive does exactly what the President further said during the state of the nation address, and I quote:

The economic downturn will affect the pace at which our country is able to address the social and economic challenges it faces. But it will not alter the direction of our development.

Since the implementation of our programme will take place in the face of the economic downturn, we will have to act prudently - no wastage, no rollovers of funds - every cent must be spent wisely and fruitfully. We must cut our cloth according to our size.

We should commend the Ministry for being a good example in this regard.

Chairperson, allow me to conclude by saying that the 2009 MTBPS strikes a positive balance of priorities in the wake of the recession. It made a strong policy position to evaluate spending in terms of impact assessment and efficiency in order to ensure value for money and reprioritisation towards higher-impact priorities.

The statement also covers significant areas identified in the Medium-Term Strategic Framework, MTSF. There are, however, some weaknesses within the statement, as identified in the committee report, that require some consideration. It is encouraging to hear from the Deputy Minister here today that they found such committee recommendations useful and are busy considering them.

Hon members, the stage is now set for us as Parliament to play our oversight role, to ensure that departmental budgets are in line with the set priorities, to hold everyone accountable and ensure that where there is deviation, noncompliance, waste of funds, etc, necessary corrective measures are put in place by the executive.

In conclusion, let me remind our opposition partners that as the ANC, we always make sure that we don’t forget the people who mandated us to come to this Parliament. As parties in Parliament, the fact that we are representing different people tells a story that our views, approaches and strategies will not always be the same. It is most fortunate that we have chosen this path as the ANC and we believe that we are on track.

Chairperson, on that note I recommend the adoption of the MTBPS. Thank you. [Applause.]

The CHAIRPERSON OF THE NCOP: I now call upon the Deputy Minister to respond to the debate. [Applause.] I can see some of you are feeling very cold, but some of you are asleep. [Laughter.]

The DEPUTY MINISTER OF FINANCE: It’s after lunch, Chairperson. [Laughter.] This depends on what some of us do during lunch.

Chairperson, once again let me thank this House, particularly the Select Committee on Finance and the committee on appropriations, for the work they have done on this report. I want to recommit our department to ensuring that we take your recommendations seriously, as the hon Chaane has indicated.

I did indicate earlier that the short time that was given to Parliament to deal with the MTBPS is regretted, and we trust that in future we will be allowed more space. This was indeed a peculiar year. We trust that next year, once all systems are in place, we will be able to deal with this, hon Chairperson De Beer.

We are all aware of the current situation and the current economic climate in which this MTBPS was tabled - the issue of loss of jobs and the issue of the origins of the crisis that we are in. A lot of people have alluded to this. We trust that with our sound economic system, we were better placed to weather the storm. That, however, did not spare us from the wrath and the severity of the storm.

Chairperson De Beer also reminded us of the important point we made in the MTBPS – that of balancing the welfare state and whether we would have the trade-off between welfare and the creation of employment. The issue that needs to be looked at quite seriously is that of addressing the structure of the economy. We would all agree that no matter what we do, because of the skewed nature of our economy, it will continue to widen the gap between the haves and have-nots - even if it grows.

We also thank the committee for their support on Operation Clean Audit. Both Houses in Parliament agree with us and emphasise that we need to tighten oversight, monitoring and evaluation.

As the chairperson has indicated, the issue of the establishment of a budget office is a critical area, as is adequate support for parliamentarians in order for them to discharge their responsibilities.

It is very difficult to say anything after members have all indicated that they are in full support of our statement. Even though Mr Harris pretended not to agree with the MTBPS, he quoted from the statement. He was very accurate in quoting from the statement, except that he said that it is DA policy. So we are finding each other. They say no matter how right-wing you are, you will always find the left wing somewhere! [Laughter.] So, I am pleased, Mr Harris, that you have finally found the left wing.

The other question he raised is that he is not too sure how we are going to finance the deficit we find ourselves in. This is the situation we find ourselves in, and we trust that it is a counter-cyclical measure we have allowed ourselves to get into. You will recall that before we got into this situation, we were in a moderate surplus.

The promise and undertaking we make is that once the economy recovers, we will have to reduce the budget deficit which we find ourselves in. But, at the moment, the trade-off we have cannot be done by reducing the budget deficit at the current time and then compromising our priorities. So, the budget deficit is the only way out.

On the kind of growth path we are going to return to, we have all agreed that if we invest in the productive capacity of our economy, we will be better placed to benefit beyond this recession and even after the Fifa World Cup, which has spurred on a number of the infrastructure development projects we are involved in.

Baba uMageba, Mntwana, izwakele indaba yakho yokuthuthukisa izindawo zethu zasemakhaya. Ngenhlanhla nami ngiphuma khona endaweni yasemakhaya ngakho-ke usizi siyalwazi futhi asiluzwa ngendaba sikhuluma ngoba siphuma kulona thina uqobo lwethu. umehluko phakathi kwethu nabanye abantu esingaphumi nabo ndawonye kulokhu kuba yikho lokho ukuthi umangabe sikhuluma ngentuthuko eyabo iyakekela ifuna ukudla ngalapho kungakhona ukwenzela ukuthi siqhubeke nokunikeza izinsiza lapho esasizifaka khona kuqala.

Nohulumeni ulithathela phezulu udaba lokuthuthukiswa kwezindawo zasemakhaya ikakhulukazi kwezolimo njengoba usho Mageba, sivumelana nawe futhi senza konke okusemandleni. Njengoba ngishilo nakwinkulumo yami ukuthi ukubambisana phakathi koMnyango wethu kanye noMnyango kababa uNkwinti onikezwe uMnyango Wezokuthuthukiswa Kwezindawo Zasemakhaya Nezinguquko Zomhlaba kuqine kakhulu.

Ubaba uMakhubela, impela kona kuyiqiniso. Noma ungahamba uyoze ubuye ngoba phela sikhuluma ulimi olulodwa manje. (Translation of isiZulu paragraphs follows.)

[Mageba sir, Prince, we have heard the issues you raised with regard to rural development. Fortunately, I also come from a rural area, therefore we know about this plight first-hand. We are talking because we have experienced it as well. The difference between us and the others who have not experienced this is that whenever we talk about development, the focus is shifted to their direction so that we continue allocating resources to the same areas that have benefited previously.

The government is also very concerned about the issue of developing rural areas, especially in respect of agriculture, as you have mentioned, Mageba. We are with you there and we are doing our level best. As I have mentioned in my speech, the partnership between our department and that of Mr Nkwinti, who is the Minister of Rural Development and Land Reform, is very solid.

Mr Makhubela, that is indeed true. Even if you go, you will still return because we are speaking the same language.]

I fully agree with you when you say we must embark on a massive solar geyser programme. This just shows that there is no way you will ever develop policies other than the policies from where you come from. This is something that the Interministerial Committee on Energy is looking at. We are definitely going to take this, not just as your advice but also as the fact that you are on the right track. We agree with you.

You also proposed an active state. That’s precisely what we are as a developmental state, so I don’t understand what the difference is. You are calling for a partnership on the issue of the R524 billion for the implementation of the programme of revamping Ministers’ houses and offices. That partnership is there, and your role as Parliament is to exercise oversight. The information will be available to Parliament from time to time. This won’t be just a public-private partnership, PPP, but there will be a partnership. This is because if it becomes a PPP, we will then have to probe for your interest in the matter.

I must say I am encouraged by the support we have received from all parties and also the constructive criticism of the statement. We once again want to say that we take it quite seriously. Thank you very much, sir. [Applause.]

Debate concluded.

Question put: That the Report on Medium-Term Budget Policy Statement be adopted.

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

Report on Medium-Term Budget Policy Statement accordingly adopted in accordance with section 65 of the Constitution.

Question put: That the Report on Medium-Term Budget Policy Statement be adopted.

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

Report on Medium-Term Budget Policy Statement accordingly adopted in accordance with section 65 of the Constitution.

                   ADJUSTMENTS APPROPRIATION BILL

                (Consideration of Votes and Schedule)

The CHAIRPERSON OF THE NCOP: As there is no speaker’s list, I shall now put the Votes in the order in which they appear in the Schedule to the Bill.

Vote No 1 – The Presidency – put.

Vote agreed to (Democratic Alliance and Congress of the People dissenting).

Vote No 2 – Parliament – put and agreed to.

Vote No 3 – International Relations and Co-operation - put and agreed to.

Vote No 4 – Home Affairs – put.

Mr T E HARRIS: Chair, the DA opposes Vote No 4 and calls for a division.

Division demanded.

The CHAIRPERSON OF THE NCOP: Hon members, a division has been called for. I must ascertain that four members are in favour of the division. [Interjections.] I have now ascertained that four members are in favour of the division. I would also like to caution members that during the division no debate will be allowed.

The question upon which the Council will divide is Vote No 4. Those who are in favour will take their seats to my right; and those against, to my left. The Council divided:

AYES - 37: Adams, F; Bloem, D V; Chaane, T E; De Beer C J; De Beer, O; Dikgale, M C; Feldman, D B; Gamede, D D; Gunda, J J; Jacobs, M P; Mabe, B P; Mabija, L; Magadla, N W; Maine, M C; Makhubela, M W; Makgate, M W; Mashamiate, T A; Mashile, B L; Matila, A G; Mazosiwe, S S; Memela, T C; Mlenzana, Z; Mncube, B V; Mnguni, B A; Mofokeng, T M H; Mokgobi, M H; Mokgoro, G G; Moshodi, M L; Ntwanambi, N D; Nyambi, A J; Nzimande, L P M; Qikani, A N D; Rantho, D Z; Sibande, M P; Sinclair, K A; Themba, M P; Zulu, M M M.

NOES - 8: Bekker, J M G; de Villiers, M J R; Faber, W F; Groenewald, H B; Harris, T; Lees, R A; van Lingen, E C; Watson, A.

Vote accordingly agreed to (Democratic Alliance dissenting).

The CHAIRPERSON OF THE NCOP: I now go to Vote No 5. Just sit there. The hon member who is late, you are seated in the wrong place.

Mr A WATSON: How do you know, Chair?

Mrs E C VAN LINGEN: Chairperson, I rise on a point of order.

The CHAIRPERSON OF THE NCOP: Permission granted.

Mrs E C VAN LINGEN: Hon Chairperson, you have not put the case to that hon member, so you cannot tell that member on which side she should sit. It’s unfair influence. [Laughter.]

The CHAIRPERSON OF THE NCOP: My apologies! Let me put the question. Hon member, those who are voting yes must sit on this side, and those who are voting no on that side. Where do you want to sit? We are on Vote No 5. [Interjections.] You want to sit there? Okay.

Mr D V BLOEM: Seeing that there’s a dispute between the DA and the ANC, she can come and sit with us here, with Cope. That’s the middle road. [Laughter.]

Vote No 5 – Public Works – put.

Vote agreed to (Congress of the People dissenting).

Vote No 6 – Government Communication and Information System - put and agreed to.

Vote No 7 – National Treasury - put and agreed to.

Vote No 8 – Public Administration Leadership and Management Academy - put and agreed to.

Vote No 9 – Public Service and Administration - put and agreed to. Vote No 10 – Public Service Commission - put and agreed to.

Vote No 11 – Statistics South Africa - put and agreed to.

Vote No 12 – Arts and Culture - put and agreed to.

Vote No 13 – Education - put and agreed to.

Vote No 14 – Health – put. Vote agreed to (Congress of the People dissenting).

Vote No 15 – Labour - put and agreed to.

Vote No 16 – Social Development - put and agreed to.

Vote No 17 – Sport and Recreation South Africa - put and agreed to.

Vote No 18 – Correctional Services - put and agreed to.

Vote No 19 - Defence and Military Veterans - put.

Mr T HARRIS: Chair, the DA opposes the Defence and Military Veterans Vote and therefore calls for a division.

Division demanded.

The CHAIRPERSON OF THE NCOP: A division has been called for.

The Council divided.

The CHAIRPERSON OF THE NCOP: I now ask both Chief Whips to count the results.

AYES - 39: Adams, F; Bloem, D V; Chaane, T E; de Beer C J; De Beer, O; Dikgale, M C; Feldman, D B; Gamede, D D; Gunda, J J; Jacobs, M P; Mabe, B P; Mabija, L; Magadla, N W; Maine, M C; Makhubela, M W; Makgate, M W; Mashamiate, T A; Mashile, B L; Matila, A G; Mazosiwe, S S; Memela, T C; Mlenzana, Z; Mncube, B V; Mnguni, B A; Mofokeng, T M H; Mokgobi, M H; Mokgoro, G G; Moshodi, M L; Ntwanambi, N D; Nyambi, A J; Plaatjie, S H; Rasmeni, R M; Nzimande, L P M; Qikani, A N D; Rantho, D Z; Sibande, M P; Sinclair, K A; Themba, M P; Zulu, M M M.

NOES - 8: Bekker, J M G; De Villiers, M J R; Faber, W F; Groenewald, H B; Harris, T ; Lees, R A; Van Lingen, E C; Watson, A.

Vote accordingly agreed to (Democratic Alliance dissenting).

Vote No 20 – Independent Complaints Directorate – put and agreed to.

Vote No 21 – Justice and Constitutional Development – put and agreed to.

Vote No 22 – Police – put.

Vote agreed to (Congress of the People dissenting).

Vote No 23 – Agriculture - put and agreed to.

Vote No 24 – Communications - put and agreed to. Vote No 25 – Environmental Affairs and Tourism - put and agreed to.

Vote No 26 – Human Settlements - put and agreed to.

Vote No 27 – Rural Development and Land Reform – put.

Vote agreed to (Congress of the People dissenting).

Vote No 28 – Minerals and Energy - put and agreed to.

Vote No 29 – Co-operative Governance and Traditional Affairs - put and agreed to.

Vote No 30 – Public Enterprises - put and agreed to

Vote No 31 – Science and Technology - put and agreed to.

Vote No 32 – Trade and Industry - put and agreed to.

Vote No 33 – Transport - put and agreed to.

Vote No 34 – Water Affairs and Forestry - put and agreed to.

Vote No 35 – Agriculture, Forestry and Fisheries - put and agreed to.

Vote No 43 – Water Affairs – put.

Vote agreed to (Congress of the People dissenting).

Schedule put and agreed to.

                   ADJUSTMENTS APPROPRIATION BILL

            (Consideration of Bill and of Report thereon)

Mr T E CHAANE: Chairperson and hon members, through the Adjustments Appropriation Bill, the executive seeks Parliament’s approval and adoption of its spending plans for the new financial year. Amounts allocated for the new MTEF period are then appropriated from the national revenue fund in terms of the Appropriation Act, once it has been approved by the President.

The main Budget also provides for a contingency reserve for expenditure related to unexpected circumstances. The adjustment Budget allocates any unused funds, mainly from the contingency reserve, which comprises approved funds for particular types of spending. The adjustments Budget includes amounts allocated in the main Appropriation Act, as well as the amount of the adjustments.

While the estimates of the national expenditure describe in detail the planned spending of all national government departments over the MTEF period, the adjusted estimates of national expenditure describe in detail the revised spending plans for the first year of the MTEF period, that is the current financial year.

The adjustment Budget makes provision for rollovers, unforeseeable and unavoidable expenditure, virements, function shifts, unallocated amounts announced in the main Budget, significant unforeseeable economic and financial events, emergencies, self-financing expenditure and declared savings, gifts, donations and sponsorships.

The Adjustments Appropriation Bill for 2009-10 deals exclusively with necessary amendments in the current financial year. The Select Committee on Appropriations has considered, analysed and further engaged the Minister of Finance on the 2009-10 Adjustments Appropriation Bill.

The committee further conducted joint public hearings with the Standing Committee on Finance, the Standing Committee on Appropriations and the Select Committee on Finance, where a panel of economists, organised labour and business made their inputs.

Having considered the 2009-10 Adjustments Appropriation Bill and inputs by all stakeholders, the committee hereby recommends the adoption of the 2009 Adjustments Appropriation Bill as presented by the Minister, without amendments. I thank you. [Applause.]

Debate concluded.

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

                         16 DAYS OF ACTIVISM

                      (Subject for Discussion)

The CHAIRPERSON OF THE NCOP: Order! Before I call the Minister, I just want to make a remark. I want to thank the Minister very much. When I got here, I found her seated there, right from the beginning of the session. She never went out – I noticed that – but sat there. What made her sit there I do not know, but it shows that she has a great interest in what the NCOP is doing. [Applause.]

I want to thank the Minister for that. Some don’t do what she is doing. They speak quickly and move on. You have shown a very great interest, Minister. Right from the beginning you have been with us, and I want to thank you for that.

I now call on the hon Mayende-Sibiya to deliver her address. [Applause.]

The MINISTER OF WOMEN, CHILDREN AND PEOPLE WITH DISABILITIES: Hon Chairperson, hon members of the House, ladies and gentlemen, I am honoured and appreciate very much the decision of this House to allocate time to discuss a challenge that is undermining the moral fibre of our society: the violation of the rights of women and children to enjoy freedom and live in a safe environment.

Chairperson, before I get to the issue of the 16 Days of Activism campaign, it is important that I briefly address the unfortunate reports that appeared in some of the weekend press about the Ministry of Women, Children and People with Disabilities.

The negative comments made about the performance of the Ministry are unwarranted and undermine the process of monitoring and evaluation that has been created by the current administration to enhance government’s performance.

The strategic framework of the department has been developed and is supported by budget proposals and an organisational structure that, we believe, will support the implementation of the programme of action of the department. All of these three documents have been presented to the portfolio committee responsible for oversight of our work as the Ministry.

Like all other new or reconfigured departments, we have submitted our organogram to the Department of Public Service and Administration for consideration and endorsement. We have already advertised for the position of director-general, and the selection process will commence immediately after the closing date, which is 7 December.

We will certainly not allow the sideshow that is being created through the media to divert us from the critical task of leading, jointly, the efforts to address the major challenges of violence affecting the women and children of our country.

The resources for the implementation of the 16 Days of Activism campaign were allocated to the Department of Co-operative Governance and Traditional Affairs, where the 16 Days secretariat was located before the formation of the Ministry of Women, Children and People with Disabilities. Because of this arrangement, we are working together with the Department of Co- operative Governance and Traditional Affairs in the implementation of this year’s campaign.

The 16 Days of Activism for No Violence against Women and Children campaign is a UN-endorsed campaign. It takes place annually from 25 November, which is the International Day for the Elimination of Violence Against Women, and runs until 10 December, which is International Human Rights Day.

The period of the campaign, hon members, coincides with the commemoration of World Aids Day on 1 December and the International Day of Persons with Disabilities on 3 December. This allows us to focus on the links between sexual violence and the spread of HIV infection, as well as incidents of abuse experienced by persons with disabilities.

The 16 Days of Activism campaign focuses on generating increased awareness of the negative impact of violence on women, children and society as a whole. In the SADC region, the campaign has gained significant momentum through the adoption of the Addendum on the Prevention and Eradication of Violence Against Women and Children by heads of state, and the plan of action and strategies for promoting gender parity in the region.

The year 2009 officially marks the 10-year anniversary of the 16 Days of Activism campaign. Over the 10 years we have witnessed the exponential growth of this campaign, making it the second most known government event in South Africa, after the state of the nation address, according to the Government Communication and Information System tracker survey of last year.

There is growth in public awareness of the campaign and its messages. This awareness has extended to vulnerable and marginalised communities, such as the farmworker community, through the Farm Workers Awareness Programme.

There is commitment by government, in partnership with NGOs, to fight the scourge of violence throughout the 365 days of the year. This commitment has resulted in the development of the 365 Day National Action Plan to End Gender Violence.

Although the campaign has succeeded in raising awareness amongst the South African public, the abuse of children and women continues to occur. This disjuncture between a high level of awareness and persistent abuse is a cause for concern. It is also an indication that more needs to be done to cultivate a culture of relevant authorities in the criminal justice system, communities, civil society and other stakeholders taking action against abuse..

The continuing incidents of violence necessitate a review of the arrangement and programmes around fighting gender-based violence and child abuse that have been implemented over the past 10 years. This will be the primary focus of the summit that will be held at the Birchwood Conference Centre in Boksburg on 25 November to mark the launch of this year’s campaign.

While highlighting successes, the summit provides an opportunity for government and its partners to reflect on the 10 years of the campaign and agree on the interventions needed to ensure an effective response to the growing scourge of gender violence and violation of children’s rights.

The Ministry of Women, Children and People with Disabilities will lead a co- ordinated effort to sustain the campaign into its next decade.

On 24 November there will be a media event and the lighting of the Torch of Peace at the Union Buildings in Pretoria. The Torch of Peace forms a link between the 16 Days of Activism campaign and other major national campaigns that support the programmes of government.

This year’s closing ceremony will be held in the Free State on 10 December. Other important highlights will include the popularisation of initiatives currently being undertaken by the Ministry of Women, Children and People with Disabilities. These include: popularisation of the South African Cedaw Report, commemoration of the 30th anniversary of Cedaw and the popularisation of the UN convention on disability.

We will also reinforce interventions against early and enforced marriages through community engagements that highlight the need to protect young women and children against early and enforced marriages under the pretext of a traditional practice called “ukuthwala”.

I am happy with the programme by the NCOP, which is trying to address and add its voice to this particular challenge. We appreciate that.

To maintain the strong corporate identity and communication impact of this campaign, we have retained the look and feel of the campaign under the theme, “Don’t look away, act against abuse”. The retention of this theme has been consulted on with partners.

Participating partners are requested to feature the campaign logo extensively in their communication tools. Partners are also encouraged to support the white ribbon campaign and to source their white ribbons from women’s empowerment groups for fundraising purposes. When we came into the House earlier this afternoon, we were given ribbons by one hon member. Thank you very much.

Chairperson, I hope that as this House goes into recess for this year, hon members will take these messages to their respective provinces and ensure that there are activities in their constituencies that seek to address the challenges of gender-based violence and child abuse. I thank you. [Applause.]

The CHAIRPERSON OF THE NCOP: Thank you, hon Minister. I am the only one who did not get a ribbon. I want to see the member who is distributing the ribbons. [Interjections.] You are discriminating against us! [Laughter.] Thank you very much. The HOUSE CHAIRPERSON (Mrs N W Magadla): Chairperson of the National Council of Provinces, Deputy Chairperson, hon Chief Whip in absentia, hon Minister Mayende-Sibiya, hon Ministers and Deputy Ministers in absentia hon members, I’m very happy to participate in this debate on 16 Days of Activism for No Violence Against Women and Children. The subject of this debate is very close to my heart as a mother and human rights activist.

We must remember that this debate takes place at a time when the Free State province, which houses the Supreme Court of Appeal, mourns the death of Teboho Sikisi, the ANC provincial spokesperson in the Free State, who met his death on Saturday night in a car crash outside Bloemfontein while travelling with his comrades.

Indeed, the life of this young leader, who was a pillar of strength to the Free State government and Premier Magashule, will not go unnoticed. It is for this reason that I want to join the people of our country in paying tribute to the late Teboho Sikisi by remembering the poem of the renowned poet John Donne entitled Death be Not Proud. The ruling party is correct in saying that the tragic death of Teboho Sikisi has robbed the national liberation movement of one of its dedicated and committed cadres. This august House must mourn with the provincial legislature and provincial government of the Free State. Their loss is our loss in the NCOP. May his soul rest in peace.

The 16 Days of Activism for No Violence against Women and Children campaign is an important campaign that asserts that Parliament should play a fundamental role in generating an increased awareness of the negative impact that violence has on women and children, and on society.

This year’s theme is “Commit, Act, Demand: We can end violence against women”. This theme will play a critical role in guiding the proceedings of this year’s debate to take centre stage in combating violence against women and children. It will further set the tone for a reflection on the gains that have been made in protecting the rights of children and women.

Women and children are not only subjected to the struggle against violence but they are also severely affected by the struggle against poverty. This new form of oppression is more dangerous because of its socioeconomic nature. It is a silent killer and women are the hardest hit by it. Today we have the great challenge of the global food crisis and women and children bear the brunt of it.

Remember, hon members, it is we, the public representatives and female leaders, who carry the hopes of vulnerable women and children, especially those in the rural areas. We have to give them hope in the form of something concrete and it is in this debate that we must come up with that hope. If we don’t, this silent killer, violence against women and children, will continue claiming the lives of our people.

For many decades, the ruling party has recognised and acknowledged the fact that the emancipation of women and gender equality are among the defining features of the national democratic revolution. Since the advent of democracy, the ANC-dominated Parliament has been at the forefront of the struggle for gender equality. As Parliament is the supreme institution in the land, we are bound to be examples to the nation and continent by taking the lead to protect the rights of the vulnerable who, in this context, are the women and children.

The month of November is indeed important in the calendar of events that characterise the programmes of organs of state. I’m saying this because South Africa took part in the campaign of No Violence Against Women and Children in 1999 and made significant strides in creating awareness around the link between gender-based violence and HIV and Aids.

The NCOP is in a strategic position to locate the campaign of 16 Days of No Violence Against Women and Children nationally because the Constitution gives the NCOP the representative role of ensuring that provincial interests are taken into account in the national sphere of government.

The NCOP has played a critical role in educating the nation to uphold the rights of children and women. This can be attested to by the programme that was convened by this august House towards the end of the Third Parliament. The review of the NCOP pertaining to children aimed to consolidate the parliamentary achievements for South African children.

The leadership of this House must be commended for convening such a programme, which had as its principal objectives the crafting of a road map for the furtherance of children’s issues and strengthening oversight work of the NCOP on issues related to children. Working together with Unicef, we must continue to organise children’s programmes in this Fourth Parliament.

We recognise the role that has been played by the Women’s Parliament in the past by calling our government to be at the centre of implementing the 365 Day National Action Plan to End Gender Violence. This will assist in prioritising gender policy goals at the level of implementation and monitoring, as well as developing management tools for integrating work on gender into its project cycles.

The struggle for no violence against women and children is winnable. It is for these reasons that I can proudly say that our country will remain incomplete until women participate fully and on an equal footing at all levels of society. In Luanda, Angola, in 1981, former ANC president Oliver Tambo was right when he said our struggle will be less than powerful and our national and social emancipation can never be complete if we continue to treat the women of our country as dependent minors and objects of one form of exploitation or another.

No longer should it be that a woman’s place is in the kitchen. In our beleaguered country a woman’s place is at the battlefront of our struggle. The late Oliver Tambo stated that the liberation of the land of our birth and all its people will materialise as a popular victory on the basis of the involvement of the masses, including women in their millions, as a conscious and active part of the antiracist and anticolonial democratic movement of South Africa.

One of the fundamental tasks that the NCOP confronts is the liberation of the women of our country from their oppression on the grounds of sex, class and colour. Malibongwe! [Praise!] [Time expired.] [Applause.]

Mrs E C VAN LINGEN: Chair, Deputy Chair, hon Minister, today we are here to debate the 16 Days of Activism and as hon members of this House of Parliament we should stand responsibly and firmly against violence against women. The Minister has stolen a lot of thunder from my speech and so has the hon Magadla - we obviously did research on the same websites! We all know that the campaign takes place from 25 November until 10 December. Something very interesting that I came across is that in South Africa women started with the Women’s Charter adopted at the founding conference of the Federation of SA Women in Johannesburg on 17 April 1954. In the preamble it says:

We, the women of South Africa, wives and mothers, working women and housewives, African, Indians, European and Coloured, hereby declare our aim …

So, it included all of us. It goes on to refer to a single society. Women do not form a society separate from men. There is only one society and it is made up of both men and women. Most importantly, the charter then refers to the test of civilisation, and I now quote:

The level of civilisation which any society has reached can be measured by the degree of freedom that its members enjoy. The status of women is a test of civilisation. Measured by that standard, South Africa must be considered low on the scale of civilised nations.

That was in 1954. How mature is South African society today - and the nation - after 55 years since the charter was written? Are we on a level where we respect one another in a civilised society in a civilised nation if there is violent crime all over the place? My friend, hon Jac Bekker, came with me in the car this morning and we discussed this issue. He said to me there are three forms of respect, namely self-respect, respect for your neighbour and respect for your God. If there is respect, very little can go wrong.

There were lots of other charters that followed after the Women’s Charter, like the Charter for Effective Equality in 1994, and then in 2003, the Women’s Charter on Information Society and Development. So, we have all these charters, conventions, platforms and Acts protecting us against gender violence. But the worst form of gender violence happens at the core of our family lives, right in the heart, where love should prevail and hold the family and everything else together. It almost seems as if one steps into a different world when we enter our homes and close our doors behind us. Suddenly there is no charter, law or Act to protect us against violence, poverty and substance abuse.

I want to say thank you to all of you who are wearing the white ribbons today in support of the 16 Days campaign. In doing so we show support; we create awareness.

It’s so sad that there is nobody from the press anywhere to be seen in order to encourage others to take part in the campaign and to show our concern and commitment to a violence-free South Africa. As hon Magadla said, the theme for 2009 is “Commit, Act, Demand: We can end violence against women”, so as political leaders we all have a responsibility to end gender-based violence together. We can make a difference. Every action, no matter how big or small, can make a difference. To be accountable we can do four things. We can ask this House now to call for the implementation of the Beijing Platform for Action. We also call on the United Nations to take bolder action on the UN secretary-general’s UNiTE to End Violence against Women campaign’s Framework for Action. We are all accountable for playing a part in reducing violence.

And just like we did with Madiba Day, where we had 67 minutes of doing community work on 18 July, maybe we should now for 16 days do 16 minutes of action work a day in this campaign. We will then come and report back to the NCOP what we as leaders have done for the women and children in our communities. I thank you. [Applause.]

Ms M P THEMBA: Chairperson, hon Minister and hon members, as the ANC we have been in the lead of campaigns against all kinds of abuse and oppression. Therefore, today is one of those days when we as leaders and as representatives of our people should come together and take stock of what impact our campaign of no violence against women and children really has had.

It is so painful to witness our neighbours, children, mothers, sisters, nieces, cousins, etc being violently abused or killed by their partners, brothers, fathers, nephews or cousins. For instance, a small boy has just been killed by his father in Mitchells Plain.

It is once more time for us as men and women to stand up and speak out, as the theme is “Don’t look away, act against abuse”. We must emphasise that breaking the silence is not a disgrace, and women and children must speak out against abuse. More and more women and children are breaking the silence by openly and publicly talking about their experiences of violation.

Violence against women must be fought at many levels. The unequal power relationship between men and women, in society and at home, lies at the heart of this violence. Therefore, it is necessary to challenge social attitudes so that the rights and needs of women with regard to equality, freedom and security of person, and with regard to other freedoms contained in the Bill of Rights, can be asserted and defended.

Sihlalo, kubuhlungu nawutsi ulalela emacala etinkantolo uve kutsi indvodza itsetse ematfumbu ayo yawabuyisela esiswini. Kubuhlungu futsi kutsi ubone indvodza ihlanta emahlanta iphindze iwadle. Lesi sento lesibuhlungu kakhulu. (Translation of Siswati paragraph follows.)

[Chairperson, it is painful when you listen to cases in court and hear that a man has raped his own children. It is also painful to hear that the man has committed the same offence after being released from prison.]

We also need, as members of this House and of our communities, to visit the courts and police stations and check on the impact of the laws and charters that we are talking about here, as well as the conventions that we have passed and the implementation thereof. What are the obstacles which we have to amend? If identified, when and how are we going to make such amendments?

The 16 Days of Activism is a high-profile, annual event for the determined effort of many South Africans. The challenge we face is to build a society in which this campaign can become unnecessary sooner rather than later. We can do that by making sure that the laws that we have passed as government are correctly implemented and that where we need to amend them, we do so as a matter of urgency.

The 16 Days of Activism is an awareness campaign that actually doesn’t mean that we only have to observe this monster called violence against women and children during the 16 days only. The South African government, led by the ANC, declared a campaign of 365 days of no violence against women and children. Hence I feel strongly that this is the time for taking stock of the impact made on the implementation of our laws. We now focus primarily on generating an increased awareness of the negative impact of violence on women and children at a grass-roots level and on society as a whole. During this time, as my colleagues have said, we must all wear the white ribbon to support the victims of violence and abuse and to symbolise our solidarity with these women and children. As this is not the first awareness campaign of its kind, employers and employees in the private sector and government are gearing themselves to start distributing those white ribbons with ceramic beads from women empowerment groups. I urge you to support them also by buying them in bulk for your organisations.

We commend the work of the many NGOs and community-based organisations that struggle on a daily basis to respond to the needs of those who experience such violence and that campaign tirelessly to prevent abuse against women and children.

We call on both government and the private sector to find ways to give resources to these organisations and improve their capacity to undertake this important work.

Chairperson, as recently as 2004, President Jacob Zuma, in his capacity as Deputy President of the country at the time, said that we must not just address the symptoms and manifestations of abuse but also the underlying value system of male dominance that sustains the abuse.

Those religious, traditional and social values that regard men as superior to women and women as perpetual minors must be exposed as immoral, with no space in our constitutional dispensation. And in our vision of a moral society, I must admit, to my distress, those words are unfortunately still valid today. In conclusion, the Book of Ephesians, in chapter 6, speaks of family love and tells fathers to love their kids and not to make them angry or abuse them. Chapter 5 of the same Book tells husbands to love their wives as Christ loved all of us. And if we lived according to the Word of God, much abuse would be eliminated.

I am also, Chairperson and hon members, calling on all of you to join the ANC Women’s League, as we do have events and a programme of action. I hope this is also so in other organisations and other parties, as the hon van Lingen said that we must do this together.

We must share the events and visit each other and share ideas of how all of us can together do away with violence against women and children. Chairperson, I thank you very much. Malibongwe! [Praise!] [Applause.]

Mr J J GUNDA: [Inaudible.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Gunda, this is a very sensitive topic, and I take it that you are a parent. So, can we then join hands and deal with this topic sincerely. I am not going to entertain you. This is just a point of correction. May I please call upon the hon Zulu.

Mr J J GUNDA: Deputy Chairperson, on a point of order: There is nothing wrong with my encouraging a member of this House if she speaks the truth. If she speaks the truth, I have the right to encourage her and to agree with her in my way. I am not taking this thing as a joke.

I was very serious when I said to her, “That’s right”, implying that she had said the right thing. So, Chair, can you please withdraw what you have said to me, namely that I take this issue lightly, because I am very serious about it! [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): May I just say it straight: I am not going to withdraw. It’s unfortunate that I understand the language you used. Please, let’s not argue unnecessarily.

UMntwana M M M ZULU: Mphathi Sihlalo, Mhlonishwa Ngqongqoshe mama uSibiya, amalungu aleNdlu ahloniphekile, ngithi sesingakuthatha sithi sekungumlando nje ukuthi kube khona abanye abantu bakithi abanebala elinjengelami nekungelona elami abakwazi ukuhlukumeza izingane zabo kanye namakhosikazi abo emizini yabo.

Mina njengomuntu ozalelwe emasikweni ngamiswa phezulu kosikompilo lobuntu, ngiyaziqhelelanisa nabantu okuthiwa bakwazi ukulala nezingane zabo uqobo - uguqe ngamadolo phezu kwengane yakho ukhululeke sengathi usukhululeka kunina uqobo.

Siyaziqhelelanisa nomuntu wesilisa oshaya umuntu wesifazane ngoba siyazi ukuthi umuntu wesifazane akanawo amandla. Abantu besifazane sibazi njengomgogodla wezwe. Kodwa ngithi le mficane esikhona kuleli lizwe lethu, phela iqale ikakhulukazi kulezi zindawo zethu okuthiwa ngamadolobha. Ngoba- nje nangu umnewethu lapha uGamede angangifakazela lapho ngisuka khona angikaze ngizwe nayinye nje indoda kuthiwa ihubhe umuntu wesifazane ngenduku noma ngizwe kuthiwe indoda isivese yabamba ingane yayo yayikhomba emacansini imbala. Asikwazi lokho, yinto eqhelelene kakhulu nathi leyo.

Bese ngibuyela kuleli siko lokuthwala, yilona futhi elihlukumeza kakhulu. Akufuneki ukuthi uma abantu benza imikhuba yabo bese becasha ngosiko. Kwelakithi ukuthwala, dadewethu Ngqongqoshe wukuthi uma ngithandana nentombi ngingayishadi kuze kugane zonke izintombi ezaziqome kanye nayo; ibisingala iye kwelinye isoka kungekhona ukuthi ayisangifuni kodwa kungukuthi ifuna ukugana. Kuyaye kuthi uma senginazo izinkomo ngizohamba ngiyoyithwala ngoba kwakuyintombi yami. Hhayi uvele usukele ingane uyithathe uyoyinikeza omunye umuntu.

Usiko lokuganiselana dadewethu linje, kukhona ukubona ukuthi kwaGamede izinkomo zikhona bese ngibiza izingane zami ngithi nayi indoda uGamede. Kithi ekhaya kwafika uJenene uHolomisa ehamba neNkosi yamaHahabe uSandile, bafika ngonyaka ka-1988 bezofunela uSandile umfazi. Samnikeza udadewethu ukuze amgane hhayi ngoba emthwalile. Savele sathi nayi indoda. Wahamba wayogana, basahlezi ndawonye namanje. Uma ubuka unyaka ka -1988 kuze kube manje miningi kabi leyo minyaka. Hhayi lento yokuthwala.

Engicabanga ukuthi sisonke njengabantu abamele abantu kufuneka sizibophezele ndawonye ukuba sifundise abantu bakithi ukuthi kunjani ukuziphatha, ngoba manje silahlekelwe ukuziphatha, salahlekelwa nawunembeza. Inkinga enkulu isemalokishini ikakhulukazi lapho kwenzeka khona zonke lezi zinto. Emakhaya ayenzeki lento. Ngibonge Sihlalo. (Translation of isiZulu speech follows.)

[Prince M M M ZULU: Chairperson, hon Minister Mama Sibiya and hon members of this House, it is becoming the norm that some of our people, who are of the same skin colour as I am, as well as others who are of a different skin colour, are abusing their children and their wives in their homes.

As someone who was brought up with the culture of ubuntu, I distance myself from those people who are said to be sleeping with their own children – imagine yourself being on top of your own child doing it until you come as if you are doing it with his or her mother.

We distance ourselves from a man who beats a woman because we know that women do not have the strength to fight men. We know women as the backbone of the nation. But this trend that is now emerging in our country started particularly in our cities. My brother here, hon Gamede, can bear witness that where I come from we have never heard of even one man who has ever beaten a woman with a stick or of a man who had just grabbed his child and demanded sex. We are not familiar with that; it is something that is really foreign to us.

And going back to the culture of abducting a woman against her will, which is the most abusive one, I want to say that it is not right for people to hide behind culture when they want to indulge in their immoral acts. Where I come from, the culture of abducting a woman against her will, my sister hon Minister, means that if I am dating a lady and I do not marry her until all the other ladies who dated their boyfriends at the same time as her have been married, she leaves me and dates somebody else not because she does not love me anymore but because she wants marriage.

My sister, the culture of arranged marriages can be explained like this: When a father is aware that Mr Gamede owns a herd of cattle, he would then call his children and tell them about Mr Gamede who is a potential husband. Gen Holomisa came to my father’s homestead in 1988; he was in the company of Inkosi of the Rharhabe clan, Sandile; they came to find a wife for Sandile. We then offered that he could marry my sister, but not because he had abducted her. We just told her that we had a husband for her. She married him and they are still together, even today. If you count back to 1988, that is a very long time. And it had nothing to do with this abduction issue.

I think that all of us as the representatives of the people need to commit ourselves to teaching our people about morals because we have lost our morality as well as our conscience. The biggest problem is particularly in the townships, because that is where all these things occur. Such things do not happen in the rural areas. Thank you, Chairperson.]

Mr J J GUNDA: Deputy Chair, hon Minister and hon members, I take exception to what the Deputy Chairperson has said. I am a very serious man when it comes to violence against women and children. I am not somebody to take serious things lightly, and if the Deputy Chairperson misunderstood me, she must say so.

Let me just say that, year after year, leading up to the 16 Days of Activism for No Violence Against Women and Children, we stand here and speak about all the atrocities that happen to them, but nothing ever changes. We hear the same speeches, the same statistics and put on the same concerned expressions, but nothing ever changes.

Hoe belangrik is hierdie 16 dae van geen geweld teenoor vroue en kinders vir ons as leiers? Wat bedoel ons met hierdie tema? Ons moenie net vaskyk teen fisieke geweld nie. Daar is ook emosionele mishandeling van vroue en kinders, byvoorbeeld armoede. Die gaping tussen rykes en armes is so groot dat dit neerkom op mishandeling. Die kwaliteit van gesondheid van die minderbevoorregtes, spesifiek vroue en kinders, is in so ’n bedenklike toestand dat die waarde van ons mense nie regtig gesien word nie. Werksgeleenthede vir gestremdes bly maar ’n uitdaging. Ek weet nie hoe lank dit ’n uitdaging gaan bly nie. (Translation of Afrikaans paragraph follows.)

[How important are these 16 Days of No Violence Against Women and Children for us as leaders? What do we mean by this topic? We should not fix our attention on physical violence alone. There is also emotional violence against women and children, for instance poverty. The gap between the rich and the poor is so vast that it amounts to violence. The quality of health of the underprivileged, specifically of women and children, is so alarming that the dignity of our people is not recognized. Job opportunities for people with disabilities remain a challenge. I do not know how long this will remain a challenge.]

Almost every week we see stories in the media of women and children being raped and killed, and it is clear that, as leaders and as society, we have failed to protect the most vulnerable in our society. So we can surely understand the frustration that led to an alleged rapist in the Eastern Cape, who had been released on bail, being stoned to death by a group of 38 women. These 38 women took the law into their own hands, because they felt that the law had failed the alleged rape survivor. The Freedom Charter says that all shall be equal before the law. [Applause.]

Dit is hartverskeurend om in die media te lees hoe kinders mishandel en vermoor word. Die reg van vroue en kinders moet nie beskou word as ’n guns wat ons aan hulle doen nie, maar dit moet gesien word as ’n reg wat die Here aan hulle gegee het. Die waarde van ’n vrou en ’n kind is nie minder as ’n man s’n nie. Inteendeel, ’n vrou het meer aansien in die oë van die Here as ’n man. Die Here het meer tyd vir ’n vrou as vir ’n man, en ’n kind is ’n geskenk vir mense, omdat dit vir ’n mens wys hoe kosbaar ons is in die oë van die Here. Ek wil dus vandag vir hierdie Huis sê dat ons in hierdie 16 dae ernstig moet raak en doen wat ons moet doen, en ons vroue en kinders goed behandel en respekteer. Baie dankie. [Applous.] (Translation of Afrikaans paragraph follows.)

[It is heart-rending to read in the media how children are being abused and killed. The rights of women and children should not be seen as favours we are granting them, but as rights given to them by the Lord. The value of a woman or a child is not less than that of a man. On the contrary, a woman has greater status in the eyes of the Lord than a man. The Lord has more time for a woman than for a man, and a child is a gift to people, because this shows us how precious we are in the eyes of the Lord. Therefore I want to tell the House today that we must become serious in these 16 days and that we must do what we must do and treat our women and children well and with respect. Thank you. [Applause.]]

Mr O DE BEER: Chairperson, hon Minister and hon members, Cope is fully supportive of the global campaign which focuses on ending gender violence. It has been running here in South Africa since 1998.

Chair, as from next week, the NCOP, the government and the corporate sector will act as a uniting force to make this year’s slogan a powerful tool with which to tackle gender violence. The slogan is “Commit, Act, Demand: We can end violence against women”.

Gender violence is common in our country. Its presence blights the good name and reputation of our country. Quite often, gender violence is linked to sexual abuse. Each year nearly a quarter of all children under the age of 18 years are sexually abused. We’ve been in this crisis for far too long and it is an indictment of all of us that this sorry state of affairs continues yearly.

Surely our government can start to act decisively to bring all those who commit violence against women and children to book. The President should open his hotline for the two weeks exclusively to women and children to report gender-related and violent acts.

The Stop Gender Violence Helpline offers such services, but by opening the presidential hotline for just two weeks, people will get the message that government is very serious about tackling this terrible conflict in society. Annually, over 1 000 children are murdered in our country and over 2 000 children come close to being murdered. Over the past few days we heard of a young boy who was murdered in Cape Town; three weeks ago and an 84-year-old woman was raped in Port Elizabeth in an old-age home.

What kind of people live in our society who can unleash such violence against women and children? Government has allowed this situation to go too far. We should be debating this issue every quarter so that we can get reports on what is being done to change this situation.

Another way of empowering women is through education. The life skills curriculum used in schools can be extended to women through volunteers and organisations. While empowering women is one thing, educating men is of equal importance. In most cases, men are the perpetrators of gender violence. Government must, therefore, target at least 50 communities where gender violence is prevalent for the coming year.

Today, as we look ahead to the year’s campaign, we should be focused on the audit of the campaign to determine its success. If we only make feel-good speeches nothing will happen. We should have statistics after the campaign to get a broad view of what was done and achieved.

Chair, I want to make a strong appeal to government to undertake an audit of the 16 Days of Activism and to let us have the report for evaluation. Together we can make it work.

Lastly, we ask the Minister to ask other departments such as the Department of Safety and Security, the Department of Health and the Department of Correctional Services to join hands in this campaign. We also want to mention to the Minister that child trafficking is one of the fundamental abuses of children and combating it should also be seen as a priority in this phase. Thank you very much. [Applause.]

Mr D V BLOEM: Chairperson, I rise on a point of order: I want to know and understand why the chairperson of this committee, Mrs Mabe, is not on the speaker’s list. She is the chairperson of the committee and I’m asking this question seriously. Why she is not included on the speaker’s list to participate in this debate, as she is the leader of this committee?

Mr S S MAZOSIWE: Deputy Chairperson, this cannot be a point of order because the speaker’s list has been drawn up and there are no problems with it. Therefore, this question is really out of order. Let us proceed.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): With due respect, hon Bloem, this is not a point of order. Speaker’s lists are discussed and members are informed that they will be addressing certain issues; she is not being marginalised. I hope you understand.

Mr D V BLOEM: I’m very happy that she is not being marginalised.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): To be honest, we are working together on a certain project with her.

Mr T A MASHAMAITE: Deputy Chairperson, hon Minister and hon members, I don’t think that hon Bloem has to tell the ANC what to do. Hon Mabe can speak for herself. You cannot be her spokesperson.

Chair, thanks for my being afforded an opportunity to participate in this important debate on the 16 days of activism campaign against woman and child abuse. This campaign runs from 25 November 2009 to 10 December 2009, as other speakers before me have said. This is a period when the country and the nation should intensify awareness around the abuse of women and children and also strengthen the struggle against violence.

This campaign is used as an organising strategy by individuals and groups around the world to call for the elimination of all forms of violence against women, in the following ways: raising awareness about gender-based violence as a human rights issue at the local, national, regional and international levels; strengthening the local work around the issue of violence against women; establishing a clear link between local and international work to end violence against women; providing a forum in which organisers can develop and share new and effective strategies; demonstrating the solidarity of women around the world who are organising against violence against women; and creating tools to pressurise government to implement promises made to eliminate violence against women.

The great challenge is that women remain a marginalised and vulnerable group in society, especially in the economic sector. Women lack skills and education due to gender-based discrimination that has existed for years. They suffer the most with regard to retrenchment due to a lack of skills and education. They are still being subjected to the patriarchal tendencies that exist in our social life as well as in our families or homes.

Government should have programmes for women’s development and empowerment as well as emancipation, to liberate them from various kinds of oppression like in Russia, which was the first country to develop or empower women in many spheres. Opportunities should be created for women to diversify their roles within the economy.

Women should have access to education and be adequately skilled to attain better jobs. In this regard, a political commitment is needed to support the empowerment of women. Women should be given top managerial posts or jobs which were previously meant for men only due to societal stereotypes. When looking at the extensive road construction in our country, women are on the roads now because they have been given jobs which were initially regarded as being for men only.

The most important stakeholders of the campaign are men – including me standing in front here. In the Vhembe District in Limpopo, men have formed a men’s forum called “Munna ndi nnyi” meaning “monna ke mang?” [Who is the man?]. This forum was created to assist in the eradication of violence against women and children.

I’m inviting leaders throughout the country, in all walks of life, to speak out in opposition to violence against women and children at all levels. These people have a powerful impact when they lend their influence to helping shape new social attitudes and behaviour.

To conclude, there has been notable progress in making violence against vulnerable members of society, specifically women and children, visible. From the above it is evident that Parliament has undertaken various initiatives, such as a number of international agreements, which aim to protect women from, amongst other things, violence. Similarly, government has implemented a number of projects and initiatives to combat violence against women and improve services for victims of violence. Nevertheless, on a daily basis, unspeakable acts of violence continue to occur and most women are not much more secure than they were before the intensified work on containing violence against women began.

Moswana o boletše a duletše mollo kua kgorong gomme a re rena botate re swanetše go tlogela taba ye ya gore mosadi ke tšhwene o lewa mabogo. Rena banna ga re a swanela gore ge re tsena ka malapeng a rena ra fetoga ditau. O tla humana e le gore monna ge a sa tšwele, ke lethabo ka gae, eupša ge ba ekwa lentšu la gagwe a kokota monyakong, lethabo le a sepela. Babangwe ba tsena ka dikamoreng. Le ge bana ba be ba sa ja, ga ba sa natefelwa ke dijo ka ge go tsene tau ka gae. Re fetogile ditau ka malapeng a rena. A re tlogeleng se hle, botate. Ke a le mema gore re bontšhe boetapele gomme re lwantšhe taba ye ya go šomiša basadi le bana ka bošaedi.

Mohlomphegi Tona ya tša Basadi, Baswa, Bana le Batho bao ba sego ba itekanela, o na le thekgo ya rena tabeng ye. (Translation of Sepedi paragraphs follows.)

[Someone once said that men should stop oppressing women - that men should stop being beasts in their own homes. It happens in some families that family members only experience happiness when the man is absent, but immediately they hear him knocking on the door, all the happiness fades into thin air. Some of the family members even go to their bedrooms. If the children were busy eating, they will immediately lose their appetite because the beast has entered the house. We turned out to be beasts in our homes. Men, please let us stop this. I invite you to model leadership and fight against the abuse of women and children.

Hon Minister of Women, Children and People with Disabilities, we support you in this matter.]

We are behind you; you have our undivided support on this matter. When I leave this podium, I won’t look back but will fight the abuse of women and children. Thank you. [Applause.]

The MINISTER OF WOMEN, CHILDREN AND PEOPLE WITH DISABILITIES: Chairperson, I wish to thank all the members who participated in the debate. I also want to thank the House for engaging in this important discussion. I have noted all the inputs in support of the campaign.

I wish to say that I dream of a society where women and our daughters will walk the streets of South Africa without fearing violence or being attacked. We have the responsibility to walk towards that society. Together we are being called – all of us, without exception – to take action. I thank you. [Applause.]

Debate concluded.

REPEAL OF THE BLACK ADMINISTRATION ACT AND AMENDMENT OF CERTAIN LAWS
                           AMENDMENT BILL
            (Consideration of Bill and of Report thereon)

Mr A G MATILA: Deputy Chair, before I go into the statement on the Bill itself, I think it is important to say - because we are worried, as Gauteng

• that the chairperson of the committee that was debating just now was not personally informed and nobody discussed it with her.This is a very serious issue. We think it must be properly addressed because it is incorrect. If there’s something wrong, our Whip from Gauteng should have been informed and have dealt with this issue so that we know exactly what is happening. We want to put it on record that we don’t think it is correct to do things the way they are being done now. Thank you, Chair.

The Black Administration Act, Act 38 of 1927, is one of the last remnants of apartheid that has still not been repealed in its entirety, as a repeal of certain provisions of this Act is dependent on the implementation of substitute legislation. Sections 12 and 20 of the Black Administration Act deal with judicial powers of traditional leaders to preside over certain civil and criminal matters.

However, in order for these sections to be repealed, the Department of Justice and Constitutional Development must put in place new legislation that will regulate the rule and responsibilities of traditional leaders in the administration of justice in the traditional courts. The Department of Justice and Constitutional Development has since finalised its policy framework on the traditional justice system under the Constitution and subsequently introduced the Traditional Courts Bill in Parliament in April 2008.

The Traditional Courts Bill seeks to regulate matters dealt with in sections 12 and 20 of the Black Administration Act and will provide the legal framework for the operation of traditional courts. The operation of the said sections of the Black Administration Act has been extended a number of times to allow the department to finalise legislation and policy in this regard.

In terms of the last amendment, the life of sections 12 and 20 of the Black Administration Act was extended to 30 December 2009, when it became evident, following submissions on the Traditional Courts Bill and the conclusion of public hearings on this Bill, that more time would be needed to deliberate and consult on the Traditional Courts Bill.

It should also be noted that the South African national elections and the establishment of the Fourth Parliament in 2009 have impacted on Parliament’s legislative programme for the year.

It is once again foreseen that the Traditional Courts Bill currently before the Portfolio Committee on Justice and Constitutional Development will not be signed into law by the deadline of 30 December 2009. The portfolio committee has thus resolved to initiate the Repeal of the Black Administration Act and Amendment of Certain Laws Amendment Bill.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, will you take your seat. Members, someone is at the podium and let’s respect that.

Mr A G MATILA: The purpose of the Repeal of the Black Administration Act and Amendment of Certain Laws Amendment Bill is to amend the Repeal of the Black Administration Act and Amendment of Certain Laws Act, Act 28 of 2005, in order to substitute a date, thus extending the date of application of the provisions of sections 12 and 20 of the Black Administration Act of 1927 to 30 December 2010. This will allow time for further consultation in respect of the content and structures of the Traditional Courts Bill.

We would, therefore, submit that this House support these particular amendments because it is only the date that is being extended, precisely because of the fact that time did not allow for proper consultation to take place. Thank you, Comrade Chair. [Applause.]

Debate concluded.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): That concludes the debate. I shall now put the question. The question is that the Bill be agreed to. In accordance with Rule 63, I shall first allow political parties to make their declarations of vote if they so wish.

Declarations of vote: Mr K A SINCLAIR: Chairperson, with your permission, the hon chairperson raised a serious issue in terms of the constitutionality of the Bill. He indicated that proper consultation didn’t take place, and we know that there are numerous instances in which the Constitutional Court ruled on the fact that consultation hadn’t taken place, so I’m not speaking against the Bill, but I am speaking against the remarks that were made by the chairperson. Thank you, Chairperson.

Mr A WATSON: Madam Chair, I rise on behalf of the DA to state our support for the Bill, because we see the need for it. However, in the committee this morning, barely three hours ago, this Bill was presented to the select committee by an official of the National Assembly portfolio committee.

The method by which it was conveyed to the select committee of the NCOP annoyed all the members of all the parties equally. In fact, if it hadn’t been for the seriousness of this Bill and the impact of the time that lapses on the previous Bill’s extension to 31 December, I can assure you that that committee would have rejected the Bill.

I therefore register, on behalf of the DA, our extreme disappointment at the way the NCOP is being treated by the portfolio committee chairperson and at the way in which the department involved has dealt with us this morning, but at the same time we do understand the need for the Bill and we will support it.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): May I please find out: Was that your declaration on the Bill?

Mr A WATSON: Chairperson, the Bill that we are dealing with now … [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon members, I’m still talking to Mr Watson. I’m not ignoring you; I’m coming back to you.

Mr A WATSON: Yes, with respect, Madam Chairperson, that was my declaration of vote on behalf of the DA on the particular Bill. We will support the Bill, but the declaration is that we are very unhappy with the process and the way in which the Bill was submitted to the NCOP select committee.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Okay, we’ll accept it.

Mr A G MATILA: Chair, may I just correct one little issue? There was extensive consultation that took place in the previous Parliament. In terms of us here, we were only supposed to deal with procedural issues and therefore there was no consultation that needed to take place now, you see.

The last NCOP sittings of the previous Parliament dealt with it extensively. We were just supposed to adopt and deal with this particular matter. Unfortunately election programmes did not allow them to do that. I just wanted to correct what the member has said.

I also want to indicate that we agree with Mr Watson, because we were not happy in the committee with the way we were dealt with in this particular matter. It was brought to us just this morning.

The NA dealt with it last week and we have put it forward, but because of the need to make sure that there’s continuity, we deal with these particular matters. We have all agreed in the committee that this Bill should go through and we would ask this House to pass it. Thank you.

Mr D V BLOEM: Chairperson, no, there was an agreement this morning in the committee and the speaker is 100% correct that all of us have agreed that the process was not right. We support the Bill and we are not going to stand in the way of the Bill, but next time we are going to reject something that comes to us in this way. I, however, fully support what our spokesperson has said, because we gave him the mandate this morning to say this is the line that we were going to take.

UMntwana M M M ZULU: Sihlalo, ngicabanga ukuthi njengoSotswebhu Omkhulu kufanele usisize lapha. Akufanele kuphasiswe ukuthi kwiPhalamende lokugcina kwenzakalani. Izinto zidlulwa yisikhathi ngokoMthethosisekelo. Lapha sinegunya namandla ngokuthunywa ngabantu kodwa akufanele ukuthi enye iNdlu … ngoba sinamandla afanayo. Ngaphandle uma nizoshintsha uMthethosisekelo wenu nithi akusewona bese niqhubeka nokusebenza ngemithetho okumele izophasiswa. Ukuba namandla okuphasisa imithetho kwaleNdlu, nikuvumele impela emini ilanga libalele kusho ukuthi njalo nje nizovele niphasisa izinto ezingekho emthethweni. Ngiyabonga. (Translation of isiZulu paragraph follows.)

[Prince M M M ZULU: Chairperson, I think that as the Chief Whip you must assist us here. It is not advisable to act according to what happened in the previous Parliament. Things become of no use as per the Constitution. We have the power and the mandate from the people who sent us here, but it is undesirable that another House … because we have equal powers. Except if you change your Constitution and say it is no longer the same one, then you continue to work with laws that must be passed. Having the power to pass the laws of this House, you must state clearly that you will keep on passing laws that should not be passed. Thank you.] The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): I will rather ask for declarations of vote.

Ms B P MABE: Chair, I just want to understand the statement that was made by hon Prince Zulu. Does it mean we have to reverse everything that has been done; we don’t have to recognise what the previous Parliament has done before us?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): I wanted to answer, but okay …

The CHIEF WHIP OF THE COUNCIL: Deputy Chair, I thought we were dealing with declarations – not any engaging. We should go back to that.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Exactly, thank you. I posed the question as to whether all political parties made their declaration of vote. Okay?

Mr D V BLOEM: Yes. Declaration?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Mr Bloem, we are going ahead with the procedures. Please! I’ve noted all the concerns raised here, but now we are going to vote.

Mr D V BLOEM: Chairperson, are you not saying that it’s declarations? I understand that we are going to vote, but are you not giving time for declarations from political parties?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Bloem, that’s exactly what I said at the beginning, and you people then decided to break up the procedures and to start arguing. I am now pleading with you that we follow the procedures.

The CHIEF WHIP OF THE COUNCIL: Chairperson, I think all parties have made their declarations already. We can’t have it twice.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): We will now vote. Please use your cards. The voting has now closed. Could the Table staff submit the results.

Forty members have voted yes, and two have not voted. The majority have voted in favour and I therefore declare the Bill agreed to in terms of section 75 of the Constitution.

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

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE - GREEN PAPER:
                     NATIONAL STRATEGIC PLANNING

Mr C J DE BEER: Deputy Chairperson, we need a broad consensus on the reaching of our long-term objectives, the outcomes of development and also on the strategies and trade-offs needed in building the society we all desire. We must take stock of the work we have done over the past 15 years. What were our successes and what were our failures? We must identify the areas that need serious attention to improve the quality of life of ordinary people, with specific reference to service delivery.

The lack of coherent long-term plans has limited the capacity to mobilise all of society in pursuit of developmental objectives. Weaknesses in the co- ordination of government have led to policy inconsistencies and, in several cases, to poor service delivery. The Green Paper should be seen as the beginning of a process that seeks to enhance and improve the work of government that is undergoing serious structural changes.

We congratulate the executive for taking this bold step. We also congratulate the Minister in The Presidency for releasing this document to generate public discussion on how government can improve its work. The Green Paper is a platform to test ideas, to consult the public, to broaden the debate and to build consensus. Planning deals with the use of today’s resources to meet tomorrow’s needs.

The committee notes that issues raised in the Green Paper cannot be resolved with immediate effect, as some of the issues should be regarded as work in progress that will continue to receive the attention of the executive. Parliament will also continue to perfect its role to be in line with the changes that are happening at the executive level.

The Green Paper was tabled in the NCOP on 4 September 2009, but was only referred to the Select Committee on Finance on 28 October 2009. Hon Minister Manuel, Minister in The Presidency for planning, briefed the select committee on 9 November 2009. Given the short period of time, no public hearings could be held. The committee invited provinces to attend the briefing and also to give their inputs. Of the nine provinces, the Eastern Cape, the North West and Gauteng attended. Given this background, we propose that the hon Minister visits provincial legislatures and briefs the members of these institutions.

The Federation of Unions of South Africa, Fedusa, and the SA Local Government Association, Salga, made submissions to the select committee.

Having considered the Green Paper on National Strategic Planning, the Select Committee on Finance proposes the following. Firstly, the Parliament of the Republic of South Africa supports the Green Paper on National Strategic Planning.

Secondly, the President or the Deputy President chairs the Ministerial Committee on Planning in order to ensure objective and independent decisions on the National Planning Commission’s recommendations. This second point is actually outdated, considering the decision that was taken this weekend. I want to state again that it is the prerogative of the Head of State, the President, to allocate responsibilities to Ministers in his Cabinet.

Thirdly, the Minister in The Presidency for national planning chairs the National Planning Commission.

Fourthly, the Minister in The Presidency for national planning presents the findings and recommendations to the Ministerial Committee on Planning.

Fifthly, the Presidency provides a detailed report on how the National Planning Commission is going to work together with all other departments and other stakeholders, clarifying the roles of these departments or entities. The report should be submitted to Parliament for consideration and reporting on by the Select Committee on Finance within three months after the adoption of this report by the House.

In the sixth place, the National Planning Commission should work together with all departments mentioned under item 5.2 in the printed report in the Announcements, Tablings and Committee Reports. In the seventh place, the Presidency should clarify the roles of provincial executives in the National Planning Commission.

Lastly, the Presidency should clarify if there will be a revised Green Paper or a White Paper on National Strategic Planning. It is recommended that a revised Green Paper or a White Paper be published for consideration and reporting on by Parliament in order to fully comprehend the overall function of national strategic planning.

I move that the House adopts this report. Thank you.

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.

                     VLIDITY OF NOTICE OF MOTION

                              (Ruling)

The HOUSE CHAIRPERSON (Mrs N W Magadla): There is a ruling that I want to read to you: Hon members, I would like to make a ruling on a point of order raised by hon Watson, with regard to a notice of motion moved by hon C J De Beer on Thursday, 5 November 2009.

The hon member asked whether it was correct in terms of the Council Rules for a member to move a motion on a matter that had been discussed in the House. He requested that I make a ruling on this matter, which I said I would do.

Hon members, I would like to bring to the attention of the House that there is a difference between a notice of motion and a motion without notice. The notice of motion is intended to inform the House that at the next sitting of the House, a member intends to move a motion. It does not require any decision by the House while the motion without notice requires the House to take a decision on a particular matter.

In terms of Rule 75(2)(a) of the Council Rules, a draft resolution for approval by the Council may not in substance be the same as a draft resolution which has been approved or rejected by the Council during the preceding six months. Therefore, until such time as the notice is acted upon by the hon member by moving it, as he indicated in his notice, it cannot be said that it is in contravention of the Rules of the Council.

I therefore rule that the notice of motion by hon C J De Beer should stand.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON SECURITY AND CONSTITUTIONAL DEVELOPMENT - DECLARATION OF AMNESTY IN TERMS OF SECTION 139(2)(a) OF FIREARMS CONTROL ACT, 2000

Mr L P M NZIMANDE: House Chairperson and hon members, I have the very simple job of asking you to approve the notice on the new declaration of the firearms amnesty for the period 11 January 2010 to 11 April 2010, and doing so in terms of the Firearms Control Act, Act 60 of 2000, and regulations thereof.

The select committee has considered the notice that outlines the process and procedures put in place to implement the declaration and we took note of the following issues contained therein. There will be no anonymity in the voluntary surrendering of firearms. This means that people must declare their identity, that their identities will be registered when they hand over the firearms and that their firearms will be kept.

There will also be ongoing snap audits conducted regularly by the police in keeping with the record. Consideration will also be given to the experiences that emanated from the other amnesty that was announced in

1. There will also be simplified administrative procedures for the registering of personal details in order to prevent blockages and backlogs in the system.

There will be safekeeping of firearms in the so-called SAPS 13 store, which is like an archive. They will be catalogued in the database so that it will be easy to track them and for the police to conduct these snap audits. Therefore there will also be a total operational register system put in place with this process.

Building on the successes of the 2005 amnesty, during which 98 000 firearms were collected, we believe that this new amnesty will further assist those people who are still in possession of such firearms. This includes, amongst others, those who have knowledge of firearms and ammunition; manufacturers; gunsmiths; private security firms; firearm dealers with surplus, obsolete and redundant firearms; firearm parts storage facilities where firearms and ammunition were stored; and individuals who stored firearms or their parts without legal authorisation to do so.

These are the categories that would be included and are targeted by this declaration, including those who keep the firearms, such as the hon Zulu. As ilifa likababa [a heritage from the father] he must return that, if this House approves! [Laughter.]

The surrendering of the firearms in this amnesty will be voluntary, as it seeks to address the problem of violent crimes that are committed with these illegal firearms that are in circulation. Through the process of the prescribed regulation in the Firearms Control Act, both licensed and unlicensed firearms will be destroyed within six months of collection. There will be regular operations to search and seize illegal firearms.

This will also allow people who have failed to meet the firearm licence application deadline to licence their weapons under certain circumstances, so there would be fair consideration by the police during this period of those people who couldn’t submit their applications for the renewal of licences.

Of course, this is not done with any promise or pledge to pay any compensation, so there will be no compensation. You will hand over ilifa [heritage from the father] without payable compensation for surrendering your firearm, whether legal or illegal.

There will also be some exclusions from this declaration. They include explosives, which are not covered by the amnesty, and amnesty will also not be granted for crimes committed with these surrendered firearms, except for the possession of unregistered firearms. Therefore, ballistics tests will be conducted on all surrendered firearms in order to ensure that none of these firearms were used to commit crimes, and where such firearms are discovered the police will be able to link the firearm to the person who handed it in and details of this person will be on record. We therefore urge that the House approves this declaration in terms of the Act of 2000, but I also need to raise this concern and call for communities to work and co-operate with the police. I was saddened by the reports in the media about the incident this morning in which an R5 was used in a meeting, as the media reported.

We need to send out the message that it’s deplorable during this time of democracy, when there are platforms for discussion and meetings of engagement, that we still go to meetings with people whom we know carrying such firearms. I think this House and the committee really must express their condemnation of such people conducting such activities and conducting themselves in that fashion.

We therefore say during this period of the amnesty that all South Africans who are committed to a safe society, safe families and safe communities must co-operate in making sure that this amnesty is as successful as the one in 2005 and we therefore recommend its approval. Thank you, Chair. [Applause.]

Debate concluded.

The HOUSE CHAIRPERSON (Ms N W Magadla): Order! That concludes the debate. I shall now put the question. The question is that the report be agreed to. As the decision is dealt with in terms of section 65 of the Constitution, I shall first ascertain whether all delegation heads are present in the House. Are all delegation heads present?

In accordance with Rule 71, I shall now allow provinces the opportunity to make their declarations of vote if they so wish. I shall now call upon the provinces to vote.

Mr D V BLOEM: Chairperson, I just want to make a request that the hon Louis must first hand in his illegal firearm so that all of us can hand in our firearms. He’s sitting with an illegal firearm. I know that!

The HOUSE CHAIRPERSON (Ms N W Magadla): All nine provinces have voted in favour. I therefore declare the report adopted in terms of section 65 of the Constitution.

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 security and constitutional development - provisional suspension of Magistrate N E Ndamase, additional magistrate at Pretoria.

Mr T M H MOFOKENG: Modulasetulo ke ne ke kopa ho sisinya phetoho tlalehong ya … [Kena hanong.] [Chairperson, can I please suggest some changes to the report of … [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Honourable Mofokeng, would you please come to the podium if you want to raise something. [Laughter.]

Mong T M H MOFOKENG: Ke ne ke kopa feela ho sisinya phetoho tlalehong ya repoto e nyenyane feela ha e qetella, e leng tlaleho ya komiti mabapi le ho fanyehwa ha nakwana mosebetsing ha Mmaseterata N E Ndamase. Komiti kamora ho lekola tlaleho ya ho fanyehwa ha nakwana mosebetsing ha Mmaseterata Ndamase, mmaseterata wa tlatsetso sebakeng sa Pretoria, ho sa emetswe sephetho sa diphuphutso bokgoning ba hae ba ho sebetsa jwalokaha ho hlokeha ho Kgaolo ya 13 ya Magistrate Act.

Komiti e lekotse tlaleho e tekilweng ke Letona la Toka le Ntshetsopele ya Molaotheo hore Khomishene ya boMmaseterata e nkile qeto ka la 29 le 30 mme ya sisinya hore Mmaseterata Ndamase a fanyehwe nakwana mosebetsing. Ka la 9 Khomishene ya boMmaseterata e ile ya tlalehela komiti ka dikateng tsa tlaleho moo e qetileng ka ho qosa Mmaseterata Ndamase ka boitshwaro bo hlephileng ho ya ka Molawana wa 26 wa Tsamaiso ya tsa Toka.

Maikutlo a bona ke hore ho na le bopaki bo felletseng ho tshehetsa diqoso tsa bona, mme ho ya ka Kgaolo ya 13 ya Molao wa Tsamaiso ya boMmaseterata, Palamente e tlamehile hore e fetise ka potlako qeto e tshehetsang kapa e hananang le tshitshinyo eo. Kamora ho sekaseka ditaba, komiti e ile ya hlokomela bothata bo tshebedisong ya puo Makgotleng a Dinyewe e le e nngwe ya ditshita mme ho tlamehile hore ho lekolwe dintlha kaofela phareleng ho ya ka ho rarollwa le ho lokiswa ha Tsamaiso ya Toka hore e be maemong a hantle.

Komiti e hlokomela hore ha ho na tharollo e bobebe qakeng ena empa tharollo e tlamehile hore e fumanehe ka potlako. Jwalokaha e le mosebetsi wa komiti ho lekola tshebetso ya mafapha a mmuso, komiti e tla etela a mang a makgotla a dinyewe ho inwesa ka nkgo ka maemo a ditaba le ho ba le dipuisano tse tebileng le Khomishene ho utlwisisa ka ho phethahala.

Kamora ho lekola tseo tsohle le hore re ntse re tlamehile ho kopana le batho bohle ba nang le lesedi tabeng ena, ha ho qeto eo re e fihlelletseng ntle le hore re kopa ho fuwa nako ho sebetsana le taba ena ho fihlella pheletsong e kgotsofatsang. Ke a leboha. [Mahofi.] (Translation of Sesotho paragraphs follows.)

[Mr T M H MOFOKENG: I would like to suggest some small changes to the last part of the report of the committee in relation to the provisional suspension of Magistrate N E Ndamase. Following the committee’s review of the report on the provisional suspension of Magistrate Ndamase, the assistant magistrate in Pretoria, we are still waiting for the conclusion of the investigation into her fitness to perform her duties, as required in terms of section 13 of the Magistrates Act.

The committee reviewed the report tabled by the Minister of Justice and Constitutional Development in which the Magistrates’ Commission took a decision on the 29th and 30th, and recommended that Magistrate Ndamase be provisionally suspended from her duties. On the 9th the Magistrates’ Commission informed the committee about the contents of the report, in which it took the decision to charge Magistrate Ndamase with professional misconduct in accordance with the Judicial Service commission Act.

Their opinion was that there was conclusive evidence to support the charges and therefore, in accordance with section 13 of the Magistrates Act, Parliament should, as a matter of urgency, consider the decision that either supports or negates such an opinion. After reviewing the situation, the committee realised that one of the problems within our court system was the language problem and that all issues pertaining to this problem needed to be addressed in the alleviation and solution of such problems for the betterment of the justice system.

The committee realised that there was no easy solution to this problem and yet a solution had to be found as soon as possible. As it is the committee’s task to assess the performance of all government departments, it would visit some of the courts in order to have a first-hand experience of the situation and also to have further discussions with the Commission for a full understanding.

After assessing all that, and considering the fact that we should also meet with all the individuals who have information on this matter, no decision has been reached except that we would like to be given more time to deal with this matter in order to come to a satisfactory conclusion. 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 SECURITY AND CONSTITUTIONAL DEVELOPMENT FOR APPROVAL OF - DRAFT NOTICE: SALARIES PAYABLE TO CONSTITUTIONAL COURT JUDGES AND JUDGES ANNUALLY

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON SECURITY AND CONSTITUTIONAL DEVELOPMENT FOR APPROVAL OF - DRAFT NOTICE: SALARIES PAYABLE TO MAGISTRATES ANNUALLY

Mr M H MOKGOBI: Chairperson, I rise on behalf of the Select Committee on Security and Constitutional Development for the approval of the remuneration of magistrates and judges.

The interim Constitution of 1993 sought to change the ad hoc nature which up to then had characterised the determination of the remuneration of public office bearers. It provided for a permanent commission to make recommendations to Parliament, provincial legislatures and local governments regarding the remuneration and allowances of public representatives. It was later entrenched in legislation.

The notion of an independent remuneration commission was subsequently also entrenched in the 1996 Constitution, which prescribed, in legislation, the establishment of a framework for the determination of salaries, benefits and allowances. The Independent Commission for the Remuneration of Public Office Bearers Act of 1997 subsequently established the Independent Commission for the Remuneration of Public Office Bearers, which was headed by Justice Moseneke between 1 April 2004 and 1 April 2009.

In terms of section 2 of the Judges’ Remuneration and Conditions of Employment Act of 2001, the President of the Republic determines the remuneration of judges after consideration of recommendations made by the commission.

The commission has made recommendations to increase the salaries of Constitutional Court judges, other judges and magistrates after it found that the remuneration levels of judicial office bearers have dropped in real terms when compared to other public office positions, especially directors-general.

Judicial remuneration practice has not kept pace with the changing judicial environment and requirements of the judiciary; judicial remuneration was not benchmarked correctly; remuneration levels were not high enough to attract and retain the desired candidates, especially young professionals; and a historic undertaking to link increases to the consumer price index rate had not been honoured.

It was found that the gap between the lowest-level judge and highest-level magistrate was too wide; whereas the reverse was true in respect of High Court judges and the Chief Justice, which was also contrary to international best practice. The commission’s recommendations were approved by Parliament in 2008, with the exception of the salaries of the presidents and presiding officers of the Divorce Courts.

With regard to the 2009 salary increases, the President issued notices on 12 November 2009, in terms of section 2 of the Judges’ Remuneration and Conditions of Employment Act and the Magistrates Act of 1993, respectively, indicating that he has approved a 7% salary increase for members of the judiciary with effect from 1 April 2009 - which I suspect will include this House. [Laughter.]

The total remuneration packages of the Constitutional Court judges and other judges, which exclude pension benefits regulated separately under the Judges’ Remuneration and Conditions of Employment Act, include an annual salary cash component of 72,24% and 27,76% noncash component, including a car allowance and medical aid.

The total remuneration package for permanently appointed magistrates includes a basic salary component of 60%, pension benefits and a flexible portion for the remaining amount. I therefore, on behalf of the committee, request your approval in this regard.

Debate concluded.

Question put: That the Report on Draft notice: Salaries payable to Constitutional Court Judges and Judges annually be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape. Report on Draft notice: Salaries payable to Constitutional Court Judges and Judges annually accordingly adopted in accordance with section 65 of the Constitution.

Question put: That the Report on Draft notice: Salaries payable to Magistrates annually be adopted.

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

Report on Draft notice: Salaries payable to Magistrates annually accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS – OVERSIGHT VISIT: INTERVENTION IN MKHONDO LOCAL MUNICIPALITY

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRATIONAL AFFAIRS - OVERSIGHT VISIT: INTERVENTION IN NGAKA MODIRI MOLEMA MUNICIPALITY

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon members, I would like to draw your attention to Order No 11 and say that the name of the municipality is “Mkhondo”.

Mr M H MOKGOBI: Chairperson and the House, once again the report will cover the two municipalities at the same time. The Select Committee on Co- operative Governance undertook an oversight visit to Mkhondo Local Municipality and Ngaka Modiri Molema District Municipality in North West and Mpumalanga respectively on the 12th and 13th of November.

This was based on the resolution of the provincial executive council of the respective provinces to intervene in the affairs of the two municipalities in terms of section 139(1)(b) of the Constitution. If a municipality cannot or does not fulfil its executive obligation, in terms of the Constitution and legislation, the relevant provincial executive may intervene by taking appropriate steps to ensure the fulfilment of that obligation, including assuming responsibility of the relevant obligation.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Bloem, you are causing a disturbance there.

Mr M H MOKGOBI: The main objective of the visit by the committee was to determine whether procedural requirements were met in the application of this Act; to verify whether the provincial executive had used its discretionary powers appropriately; and determine how the provincial executive intends to restore the fulfilment of the relevant obligation and ensure long-term sustainability in that regard. The main issues identified at Mkhondo Local Municipality are the following: The municipality effectively failed in its constitutional obligation, did not have a clear plan and the integrated development plan and the service delivery and budget implementation plans, SDBIP, were not connected. They were scattered. In fact, there was no adherence to the trinity of budget, IDP and performance systems.

The IDP and the SDBIP appeared to exist outside of what is required by law. Performance management measures were largely activity-centred. They were not centred or linked to service delivery as required by law.

Furthermore, the committee found poor service delivery, loss of governance control, poor management, anomalies in supply chain management and corruption and internal squabbles that arose out of political quarrels and competitions. These are the issues, amongst other things, that were found at Mkhondo Local Municipality.

The other critical issue is that five wards, as we speak, still need serious political intervention as they are like a no-go zone, politically. We also have to recommend to the provincial executive that they step up the efforts of what can be done on a daily basis to ensure stability. As things stand now, we might go beyond the six months’ determination of intervention without solving major things that we need to see on the ground.

The main issues that we found at Ngaka Modiri Molema District Municipality are the following. The municipality operated beyond its constitutional and legislative mandate. There are dysfunctional political governance structures. The approval of the salary adjustment agreement between the former municipal manager and the mayor, together with the SA Municipal Workers’ Union, was totally outside of the national collective bargaining agreement which, in terms of the Local Government: Municipal Finance Management Act, is in breach of compliance with financial systems.

There is one point that needs to be emphasised, namely that once this matter has been resolved, in terms of the eyes of the community, the municipality will drift towards stability. I’m sure everyone knows that where there is money, there is a problem.

There was also noncompliance with legislative provisions governing local government as a sphere; irregular, fruitless and wasteful expenditure; the breakdown of service delivery and instability caused by mismanagement of union strikes and the dismissal of the municipal manager; and allegations of fraud, corruption and mismanagement. You would know that this is the municipality which was in the newspapers for sending the soccer squad to Brazil for training.

The other things that are general to both the two municipalities is that they need serious capacity-building and training, particularly for councillors to understand the following pieces of legislation: the functions of the Local Government: Municipal Structures Act, which is a political tool to guide councillors; the Local Government: Municipal Systems Act, which is an implementation tool that guides management and administration; and the Local Government: Municipal Finance Management Act, which is very elaborative and only needs to be followed like the Ten Commandments. Those who believe in the Bible can do these things.

Other issues on which more training is needed can be detected, but these are the major things on which we need to engage the provincial executive to ensure that there is compliance. The ward committees also need to be strengthened, precisely because if they are weak, communication and public participation suffer and that is a case in point at both municipalities.

At Ngaka Modiri Molema District Municipality the political organisation has intervened and we have a new mayor who has already been there for two months. What worried the committee, and we cannot hide it because the premise of oversight is to engage primarily with the administrator who is there in terms of section 139, is that when we arrived there, the administrator was not there and there was no apology. The committee summoned the administrator and he was there that day, and we did engage with him to get what we wanted. But we condemned his absence as undermining the authority of Parliament as the highest institution in the land. Our recommendations are that the House should approve the necessary interventions in both municipalities. Remember that we are an oversight and not an executive authority and can only recommend that the House accept our recommendations. We are within 181 days, as the NCOP, to engage on this matter and therefore within the law.

Secondly, we recommend that the House approves that the provincial executive should further look at extending the intervention precisely because the one intervention period ends in December this year and the other in January and, in terms of assessment, more still has to be done. Generally section 57 is not in place in both municipalities; if not one, two.

We further recommend that the provincial executive of the North West province engages in a further extension. The duration will depend on how the committee engages with them - either for the suggested three or six months, but this can be further engaged on to understand what will happen.

In addition, it is recommended that the appointment of municipal managers in terms of section 57 in both municipalities be fast-tracked and that the provincial executive put structures in place that would, on a weekly basis, do monitoring. Otherwise it will be compliance just for the sake of applying section 139 without yielding results.

We also further request that Salga intervene in terms of training. They were with us and noted what it is that they are supposed to be doing. Therefore the portfolio committee wishes the House to approve this report with matters that have been raised and other matters that still need to be engaged with in order to comply with section 139. Thank you. [Applause.]

Debate concluded.

Question put: That the Report on Oversight Visit: Intervention in Mkhondo Local Municipality be adopted.

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

Report on Oversight Visit: Intervention in Mkhondo Local Municipality accordingly adopted in accordance with section 65 of the Constitution.

Question put: That the Report on Oversight Visit: Intervention in Ngaka Modiri Molema Municipality be adopted.

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

Report on Oversight Visit: Intervention in Ngaka Modiri Molema Municipality accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON TRADE AND INTERNATIONAL RELATIONS - COTONOU PARTNERSHIP AGREEMENT

Mr D D GAMEDE: Chairperson, the ACP Partnership Agreement is a covenant between the members of the African, Caribbean and Pacific Group of States on the one hand and, on the other, the European Community, which is normally called the “EC” and its member states in the European Union, EU. It was signed at Cotonou in Benin on 23 June 2000. The Cotonou Agreement encompasses various aspects, including trade, development and political co- operation.

The underlying objective of this partnership is embodied in Article 1 of the agreement, which provides that it is meant to eradicate poverty and create the environment for sustainable development to take place and eventually facilitate the integration of the ACP countries into the world economy. The most significant characteristics of the reciprocal credit and payment agreement, RCPA, are the following: equality of partners and ownership of development strategies; participation by other actors such as civil society, the private sector and local governments; dialogue and mutual obligation; and differentiation and regionalisation. Now, the origin of the ACP Group of States dates back to the Treaty of Rome, which established the European Economic Community in 1957. The ACP countries formalised their relationship with the European Community in 1975 when parties engaged in the preferential trade arrangement as part of the Lomé Convention. The external parties only enjoyed preferential trade as part of the general system of preferences.

Due to the fact that external parties could not enjoy the same benefits as the ACP countries, this arrangement put the Lomé trade regime at odds with the rules of the WTO; hence it had to be amended.

Now, House Chairperson, the 2005 revision of the agreement focuses on strengthening the political dimension by placing greater emphasis on effective dialogue and results. In addition, it also introduces new dimensions to the co-operative arrangements so as to include new issues such as co-operation in countering the proliferation of weapons of mass destruction, and co-operation in the fight against terrorism, as well as against mercenarism.

The revised agreement marks an important break with the past. It has been designed to promote good governance; peace and security; human rights; economic, social and cultural development of the ACP states; and a generally democratic political environment. Thus, the revised agreement is much broader in scope than any previous agreement and is designed to last for 20 years.

South Africa participates in three joint political organs of the ACP-EU: the council of ministers, the joint parliamentary assembly and the committee of ambassadors. The ACP-EU also provides South Africa with the opportunity to promote its policy objectives, strengthen South-South co- operation and advance the consolidation of the African agenda and economic regional integration.

South Africa has to accede to the agreement as stipulated since time for ratification in the agreement lapsed in June 2009. I therefore ask and request this House to agree that we accede to this agreement. Thank you, 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.

                          FAREWELL SPEECHES The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): I will now afford hon members the opportunity to bid farewell to each other as this is our final sitting for the year.

The CHAIRPERSON OF THE NCOP: You look very tired. You are looking forward to going home! [Laughter.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Exhausted!

The CHAIRPERSON OF THE NCOP: I can see that. There is constituency work to be done when you get there. It is waiting for you, but at least you will be sleeping at home every day.

Chairperson, hon members, ladies and gentlemen, in his play Romeo and Juliet, William Shakespeare says: “Parting is such sweet sorrow,” and this is exactly how I feel today. I, however, find solace in knowing that we are only parting to meet again. So, we will meet again very soon.

Now, hon delegates, as the 2009 parliamentary year comes to a close, I wish to pay tribute to all the people who contributed to the effective functioning of this House.

Firstly, I would like to acknowledge the support of the colleagues that I worked with: the Deputy Chair, hon Memela, and the House Chairs, hon Magadla and hon Tau, as well as Chief Whip Ntwanambi, who have been great to work with and have never failed to perform when asked.

Secondly, I also acknowledge the tireless work of the NCOP. Thirdly, a big thank you also goes to all provincial Whips and chairpersons of select committees, as well as members of the NCOP for doing their part to make the business of this House run so efficiently thus far.

Fourthly, I also acknowledge the tireless work of the NCOP Secretariat under the leadership of Acting Secretary Adv Phindela for the support they gave to members of this House, as well as the staff in the office of the Chairperson of the NCOP.

Fifthly, I would like also to thank the staff of the entire Parliament, in particular the NCOP, for the professional and administrative skills in serving the House by compiling Hansard records, processing legislation, questions and petitions and serving select committees. Lastly, I want to thank you very much for all the wonderful work you have done.

As we approach the new year, it is a very appropriate moment to look back on the six months that have passed, where, among other things, the NCOP strategic plan workshop and the Whippery workshop took place that helped to chart the way for us this year as well as for the entire term of Parliament. These workshops have helped a lot as more than two thirds of NCOP members were new and were still finding their feet.

I must say I’m pleased at how quickly members have adapted. I never thought you would adapt so quickly, but I’m smiling: I didn’t want to say it. You know, if you count the older members who were here for the last term, I think we are only seven. But I must congratulate you that you learned very fast. I can go back to all your parties and say you are doing a really wonderful job. [Applause.]

I can go back to all your provinces and tell them that they deployed people who are prepared to work and who are serious about making the work of this institution very effective and very prominent. I thank you very much for adapting and learning so quickly. [Applause.] [Interjections.] No, including hon Bloem. [Laughter.]

Ladies and gentlemen, I do not want to waste your time; all I want to say is thank you for the work you have done during the provincial week. Mr Watson, we investigated your matter and the letter is on its way; I don’t want us to part in a sour mood. You must go home and enjoy. I have also investigated the matter, and you will be receiving your letter very soon in your office. But all of you have done a really wonderful job. Every delegation reported that it was wonderful work that you have done. Despite the challenging times this year, especially with our budget, the accomplishments were satisfying.

I want to express my personal and heartfelt thanks to all of you for maintaining your balance, your sense of humour, your fortitude and most of all your humanity throughout the challenges of the year. You kept your focus even in uncomfortable situations or circumstances, such as when you worked late into the evening, like last Tuesday, when we had to pass the National House of Traditional Leaders Bill and the Traditional Leadership and Governance Framework Amendment Bill.

I am sure that the people of South Africa, especially the traditional leaders, appreciate the work that you have been doing.

Now you should relax. Please! I emphasise this, relax and enjoy your well- earned rest as much as possible with your families. They need you because they haven’t seen you for the past six months, because you’ve been packing your bags when you reached home and going to your constituencies which are far from your own homes.

I hope we will come back next year fully recharged and ready for the full year. I must warn you, though, that the programme for next year will be compact, as you know that we are hosting the Fifa World Cup. You must also go to the stadiums and watch the football. Do not just sit in front of your TVs; go there and clap and shout, at the stadium, to motivate Bafana Bafana so that they can move and win next year’s Fifa World Cup.

As you rest, please prepare for the coming year. Keep on supporting Bafana Bafana, starting with the match tonight against Jamaica. I hope a lot of you will be able to see that match. Shout at them from home, except that you must tell them to sing the right national anthem and not to do what they did when the Springboks were playing. [Laughter.] I don’t know who motivated them to sing the way they were singing then.

I wish you all a very merry Christmas and a happy New Year, and I want to invite you for a very light snack in the Queen’s Hall and to enjoy yourself before you go home. Thank you very much. [Applause.]

Chairperson, I must apologise to the House, I’m meeting the President of the Senate of the Democratic Republic of Congo. I’m actually late; I should have been there now, but I will be there in the next five minutes. If you could release me to go and join them there, I will be happy. They are waiting for me. Thank you very much. [Applause.]

Mr D V BLOEM: Chairperson, I hope that you are going to give me two more minutes. Let me take this opportunity, on behalf of Cope, to add my voice to the good and wise words of our Chairperson. Thank you, Chairperson, for the very beautiful words. I must mention from the outset that I have made very good new friends and others were not so good, but they are good, all of you are good. [Laughter.] One thing I really want to give to some members here in the House as a Christmas gift is tolerance.

You know, some are not so tolerant. We must listen to the views of others; we must respect that. Let me also convey greetings and blessings from our president, Mosiuoa Terror Lekota. [Applause.] He wishes all of you a blessed and prosperous New Year.

I have some tips for some of our members for the New Year. Hon member Chaane, you are first. Here is a tip: you are too fast when reading your speeches.

Ka puo ya setsotsi ra re: “wa spita, too much”, Ntate. [In Tsotsi taal [language] this is expressed as: “You are too big for your boots”, sir.]

But you are not alone, you have a twin brother and that is Gunda. Gunda is also very fast when he speaks. In Afrikaans we say: Jy is te haastig. Jy moet net ’n klein bietjie afkoel. [You are too hasty. You must slow down a little bit.]

The second tip is to our Chief Whip. Chief Whip, stop dreaming about Helen Zille, please! [Laughter.] Please stop because I can see that you dream about the Premier of the Western Cape and that will cause you to have a heart attack. [Laughter.]

I have a very serious proposal to make, which is that when we come back next year, the Chairperson must allow us to come into the House with vuvuzelas so that when any one of you is not speaking sense we will blow the vuvuzelas.

Let me wish all of you a merry and happy Christmas and a blessed New Year. Go well and come back with energy and steam and let us move on. Thank you very much. [Applause.]

Mr A WATSON: It is an honour to stand here again today, taking part in this debate on this topic, for the sixth consecutive year in succession. This signals the end of our first session and a very new experience for most of our colleagues but that itself, I suppose, is emblematic of the changing face of politics.

I would have loved to reflect on many of you, both the old ones, like the troublemaking hon Freddie Adams, and the new ones, like hon Nzimande, who said he is a Catholic and Communist; or maybe hon Bloem, the old hand learning new tricks - and no, hon Bloem, you can’t make a statement. [Laughter.]

Chairperson, that is not possible in the three minutes we have been allowed. So, as a liberal and a Protestant, I will have to single out only a few. But it seems that we cannot stop a meeting without referring to our Chairperson, hon Mahlangu.

It was a happy surprise for all of us that you chose to come back to us and not to go and rest on that farm you have been dreaming of for such a long time. Welcome back and thank you for being such a unique leader, and may you and the other presiding officers enjoy your well-deserved rest. I didn’t copy Mr Bloem, but Chief Bloem, please find time to relax and meditate on ways to be less excited about the Western Cape. [Laughter.]

Helen Zille is here to stay, so just relax and accept the inevitable. It is good to observe that the winds of change for the better have at last blown amongst our officials and I trust that they too will find some time to rest. But Adv Phindela, you will all have to come back again early next year and every year thereafter until you do it completely right.

The colleagues from the other opposition parties are all new to the NCOP except, of course, hon Sinclair, who has been everywhere. [Laughter.] But I must say it has been a pleasure working with them all.

In my April speech I speculated that jostling for position was going to take place in the ANC, so all the newly deployed cadres that we see confirm my prediction 100%. It seems the battle of Polokwane is not yet quite over, so you will have to tackle the new problems and groupings within groupings back home.

Most of my colleagues in the DA are also newcomers but they have been a great team and have done a fantastic job. Thank you for your support and hard work, colleagues. Please have a good rest but always keep your eyes open to see what those others are contemplating.

Chairperson, I know my time has run out but, please, I want to leave you with a special lesson that the pencil maker teaches the pencil. Firstly, the pencil maker taught the pencil never to forget that everything you do will leave a mark. Secondly, however, remember that your mistakes can be corrected. Thirdly, therefore, never forget that what is most important is what is inside you. Fourthly, know that in your life you will undergo many painful sharpenings which will make you a better pencil and, lastly, remember to be the best pencil you can be.

To be the best pencil you can be you must allow yourself to be guided by the hand that holds you. May the Almighty further hold you and guide you, Chairperson and hon members, especially our Chair of the House, and may the wonderful message of Christmas find its way into your hearts and homes. Bless you all! [Applause.]

UMntwana M M M ZULU: Sihlalo, amalungu ahloniphekile ngithi nginifisela ukuthi neshwame kahle lonyaka. Sisebenze kahle sisonke ndawonye njengabantu abamele izifundazwe eziyisishiyagalolunye zaleli lizwe. Ngithi ngiyabonga kakhulu kuSihlalo waleNdlu, kwiPhini lakhe kanye nakubo bonke labo abamele izifundazwe zonke ngokusebenzisana okuhle.

Ngithi sesibheke phambili, sengathi uNkulunkulu angasigcina kulezi zingozi ukuze sikwazi ukuphepha sibone lonyaka ka-2010 ukuthi usiphatheleni. Bese ngithi kumama uSotswebhu Omkhulu kumele nibengabazali nikwazi ukusiyala kahle nabanye obaba laba abasebebadala ukuze sikwazi ukusebenza kahle ngokuya phambili. Besengithi ukuphikisana kwethu kukonke lapha kufuneka kusakhe ngoba kuyizinsika zentando yeningi ukuba kubekhona abantu abaphikisayo kodwa kuphikiswe ngokwakhayo. Ngibonge kakhulu ukuba ngisebenze nani ngifisa sengathi uBaba O mkhulu angangigcina mhlawumbe ngibuye ngonyaka ozayo ngisaphila. Ngiyabonga. [Ihlombe.] (Translation of isiZulu speech follows.)

[Prince M M M ZULU: Chairperson and hon members, I hope that you begin the new year well. We worked well together as the representatives of the nine provinces of this country. I say thank you very much to the Chairperson of this House, his deputy and to all those representing the provinces.

As we march forward, may God protect us from accidents in order for us to see what 2010 has in store for us. I say to you, Madam Chief Whip, you have to be a parent and admonish us well - these experienced gentlemen too in order for us to work progressively.

Let me also say that our debates here in totality should be constructive because they are the pillars of democracy, as is having these people who engage themselves in these debates, but in a constructive way. I am grateful for having worked with you; my wish is that the Almighty protects me, so that I may return next year. Thank you. [Applause.]]

Mr J J GUNDA: Chair, hon Chief Whip and Chairperson, in absentia, allow me to say to you that it has been a wonderful journey this past seven months. It is a pleasure to have worked with the people here. I appreciate it, and I have learned a lot in these past few months.

Let me say this one thing: I believe what John C Maxwell said – that people who are leaders can only lead when they can lead themselves. If you are not able to understand a difficult person, you will never be able to lead that person. You must learn to lead yourself and understand difficult people, knowing that we can do our best.

I would like thank the hon Chief Whip for teaching me a lot in a short span of time. To the Chairperson, M J Mahlangu, it is not the first time that I have met him. Since being in the legislature in the Northern Cape, since I met the Chairperson, he has been an absolutely unique leader. You see, you must give credit where credit is due and don’t be jealous, because all of us are unique. All of us can learn from one another.

I would like to say today that it is a privilege for me to meet people like Gamede and Nzimande, the people who always say that they are from the province with the name and the surname. So, people, I would like to wish you a merry Christmas, a prosperous and a blessed New Year, and I hope that when we come back …

… gaan ons so ’n bietjie Afrikaans praat en dan gaan ons ’n bietjie bua [praat] en dan gaan ons weer thetha [praat] en khuluma [praat] en avuxeni [groete]. Dit gaan lekker wees in die nuwe jaar, maar daar gaan baie harde werk wees vir ons almal. Ek wil graag sien of die Parlement, hierdie NRVP en die Parlement as geheel, nie weer ’n slag daardie netjiese baadjies kan kry met die wapens, as die Lede van die Parlement, om net ’n verskil te maak en te wys … (Translation of Afrikaans paragraph follows.)

[… we are going to speak a little bit of Afrikaans and bua [talk] a little bit and then we are going to thetha [talk] and khuluma [talk] and avuxeni [greetings] again. The new year is going to be enjoyable, but there will be lots of hard work for all of us. I would like to see if Parliament, the NCOP and Parliament as a whole, can obtain those neat blazers with the Members of Parliament badges again, just to make a difference and to show that …]

… these are Members of Parliament.

Nog iets wat ek vandag vir u wil sê is dat in die nuwe jaar … [Something else that I want to mention today is that in the new year …]

… we must do more oversight to see that service is being delivered to the people.

There must be a better budget for the committees to go and do the work. They have been elected to do oversight. They have been elected to see to it that service reaches the electorate. We have been elected to be their ears, to be their eyes, to be their mouthpieces, so next year, all chairpersons of select committees, you must speak your mind to get us into an oversight role, so that there must be money for us to go and see that the people have to be serviced.

I thank you, Chairperson. Enjoy your holidays and enjoy your kids. Those who are married men, enjoy your wives. I thank you. [Time expired.] [Applause.]

The CHIEF WHIP OF THE COUNCIL: House Chairperson, hon members and comrades, I must say, for the first time I have worked very well with a member from the DA, who is also my provincial Whip. This says that in the NCOP we are able to work with one another. I must also say that there are members here who really … [Interjections.] Continue that sentence. I didn’t say that.

I also want to say that as we come to the end of 2009, we must look back and all agree that it was a greatly challenging year. We all participated in the election campaign, each party hoping to get the 50% plus one, but there always be only one victor, and we will always be that.

Whether you agree or you don’t, you have no choice on this one. You have to agree with me. I also want say, Chair, as we go back to our constituencies, let’s engage our communities, educate society about the laws that we make, about the laws that empower them and about the laws that protect them.

We will begin our new year with the workshop that we have postponed. Remember, tomorrow we were supposed to have a workshop. We have postponed that until next year, together with other matters. Of course, we have to plan for what we will do next year and how we will take our work forward for the whole of next year.

House Chair, we rise at a time when the world is observing the 16 Days of No Violence Against Women and Children campaign. I want us to make sure that, together, we work with the police to protect their lives. It is such a bad and heartbreaking thing to see young children being killed by their fathers.

When a husband doesn’t agree with me, the mother, then he makes sure that he’ll take the child’s life. Because I am the mother, I must feel that pain. It is the responsibility of all of us to protect our children. That problem knows no race; it knows no colour.

I also want to say that as we mention the 16 Days of No Violence Against Women and Children, we will mention World Aids Day, but we don’t speak about 3 December. We don’t speak about that, so next year, as we continue with this debate, we have to make sure that people with disabilities hear us speaking about them, those of us who are not yet disabled, because sooner or later, we will be joining that club. I know Mr Watkins is slowly moving there. You know, Mr Watson has changed his surname. The unfortunate thing is that you all don’t know that I am the only one who knows it. So, don’t be surprised when I call him Watkins. He has two names now. Today he is Watson, and on another day he is Watkins.

Chair, I want to thank the provincial Whips, the political parties and all members for their good co-operation. I know that in the process I might have trampled on your toes. You must know that it was not deliberate. It was because I wanted us to be taken as a House, not as a hokkie [little cage]. We are a House here.

Lastly, I want to thank the support and advisory staff of the NCOP, under Adv Phindela, and thank the staff in my office, without whom I wouldn’t have been this successful a Chief Whip. It is due to them that I have been able to work.

Lastly, on behalf of the ANC and on behalf of myself, as the Chief Whip, I wish you a good and enjoyable rest. May God Almighty be with you all till we meet again, but remember: Arrive Alive. Don’t drink and drive. Drinking doesn’t apply to men only. May all of us not drink and drive. May you have a merry Christmas and a prosperous 2010, and we hope that, for the first time in our lifetime, of course, Africa will bring the World Cp home. Thank you very much. [Applause.]

The Council adjourned at 19:09. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

                     WEDNESDAY, 11 NOVEMBER 2009

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson 1 Classification of Bills by Joint Tagging Mechanism (JTM)

(1)    The JTM in terms of Joint Rule 160(6) classified the following
     Bill as a section 75 Bill:

      a) Repeal of the Black Administration Act and Amendment of
         Certain Laws Amendment Bill [B 15 – 2009] (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 and transmitted (1) Bill passed by National Assembly on 11 November 2009 and transmitted for concurrence:

   (a) Adjustments Appropriation Bill [B 13 – 2009] (National Assembly – sec 77).

       The Bill has been referred to the Select Committee on
       Appropriations of the National Council of Provinces.
   

TABLINGS

National Assembly and National Council of Provinces

1. The Speaker and the Chairperson (a) A copy of the recommendations of the Independent Commission for the Remuneration of Public Office-Bearers in respect of salaries, allowances and benefits of public office-bearers for 2009/2010 was submitted to Parliament on 11 November 2009 in accordance with section 8(5) of the Independent Commission for the Remuneration of Public Office-Bearers Act, 1997 (No 92 of 1997).

2. The Minister of Social Development

 a) Report of the Central Drug Authority (CDA) for 2008-2009 [RP 252-
    2009].



                     THURSDAY, 12 NOVEMBER 2009

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 Assembly on 12 November 2009:


      a) National House of Traditional Leaders Bill [B 56D – 2008]
         (National Assembly – sec 76(1)).


      b) Traditional Leadership and Governance Framework Amendment Bill
         [B 57D – 2008] (National Assembly – sec 76(1)).

National Council of Provinces

The Chairperson

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

(1)     Bill passed by National Assembly on 12 November 2009 and
     transmitted for concurrence:


     (a)     Repeal of the Black Administration Act and Amendment of
          Certain Laws Amendment Bill [B 15 – 2009] (National Assembly –
          sec 75).


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

TABLINGS

National Council of Provinces

1. The Chairperson

    a) Policy Imperatives: Parliament 2009 - 2014.
   

COMMITTEE REPORTS

National Council of Provinces

1. The Report of the Select Committee on Trade and International Relations on the Accession to the Revised Cotonou Partnership Agreement: Agreement Amending the Partnership Agreement between the Members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part, dated 12 November 2009:

The Select Committee on Trade and International Relations, having considered the request for approval by Parliament of the Accession to the Revised Cotonou Partnership Agreement: Agreement Amending the Partnership Agreement between the Members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part , referred to it, recommends that the House, in terms of section 231(2) of the Constitution, approve the said Agreement.

Report to be considered.

                      FRIDAY, 13 NOVEMBER 2009

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

 1. Membership of Committees

    1) Mr. S D Montsitsi has been elected as co-chairperson of the
       Joint Standing Committee
       on Defence with effect from 13 November 2009.

TABLINGS

National Council of Provinces

1. The Chairperson

   a) Draft notice and schedule in terms of section 2(4) of the Judges’ Remuneration and Conditions of Employment Act, 2001(Act No 47 of 2001), determining the rate at which salaries are payable to Constitutional Court Judges and Judges annually, with effect from 1 April 2009, for approval by Parliament.

   b) Draft notice and schedule in terms of section 12(3) of the Magistrates Act, 1993 (Act No 90 of 1993), determining the rate at which salaries are payable to magistrates annually, with effect from 1 April 2009, for approval by Parliament.

   Referred to the Select Committee on Security and Constitutional Development for consideration and report.

COMMITTEE REPORTS

National Council of Provinces

1. Report of the Select Committee on Appropriations on the Adjustments Appropriation Bill [B 13 – 2009] (National Assembly – sec 77), dated 12 November 2009:

 The Select Committee on Appropriations, having considered the subject
 of the Adjustments Appropriation Bill [B 13 – 2009] (National Assembly
 – sec 77) referred to it and classified by the JTM as a section 77
 Bill, reports that it has agreed to the bill without amendments.

Report to be considered

1. Report of the Select Committee on Appropriations on the 2009 Medium Term Budget Policy Statement, dated 13 November 2009

2. Introduction and Background

The Minister of Finance, Honourable Pravin Gordhan, tabled the Medium Term Budget Policy Statement (MTBPS) on 27 October 2009, outlining the budget priorities of government for the medium term. The MTBPS was tabled together with the Adjustments Appropriation Bill [B13 - 2009]. The Adjustments Appropriation Bill was referred to the Select Committee on Appropriations for consideration and report while the MTBPS was referred to the Select Committee on Finance and the Select Committee on Appropriations to consider, in accordance with their respective mandates as outlined in the Money Bills Amendment Procedure and Related Matters Act No 9 of 2009. Among its responsibilities in respect of the MTBPS, the Select Committee on Appropriations (the Committee) is required to consider and report on the following issues:

• the spending priorities of national  government  for  the  next  three
  years;
• the proposed division of revenue between the spheres of government and
  between arms of government within a sphere for the next  three  years;
  and
•  the  proposed  substantial  adjustments  to  conditional  grants   to
  provinces and local government, if any.

The Committee, in collaboration with the Standing Committee on Appropriations, invited the national departments of Basic Education, Health, Rural Development and Land Reform, Public Works, Water and Environmental Affairs as well as Cooperative Governance and Traditional Affairs as they were considered strategic partners in the implementation of policy priorities. These departments were required to account for their budget plans. Furthermore, the Human Sciences Research Council, the Financial and Fiscal Commission, independent economists and the Peoples Budget Coalition were invited to comment on the 2009 MTBPS. All the invited organisations and individuals made their submissions with the exception of the People’s Budget Coalition.

The Committee acknowledges that the MTBPS is tabled during a time when world economies, including South Africa’s, are in economic difficulty. This presents serious challenges including decreased revenues, job losses and increased dependence on social programmes. The economic meltdown and projected decline in the tax revenue, in the near term, may require changes in medium term budget proposals. This will in turn necessitate that domestic policies ensure that funds are directed to those sectors and programmes which have the greatest impact on the lives of people living in South Africa.

1. Budget priorities for the medium-term

The budget priorities over the medium-term support policy priorities of government. In line with the second 2009 State of the Nation Address (SONA), government prioritises its resources in the following five areas: • supporting job creation initiatives and realigning support to business to enhance employment opportunities; • enhancing the quality of education and skills development; • improving the provision of quality health care; • driving a more comprehensive rural development strategy; and • intensifying the fight against crime and corruption.

These priorities are supported by a government strategy which includes the shifting of resources to labour intensive sectors of the economy. Furthermore, government will strive to improve State performance with specific regard to the delivery of services to the poor. In the light of the current budget pressures, the Committee is of the view that limited resources should be utilised to produce maximum output, without compromising the quality of services. The fiscal framework makes an addition of R78 billion to the baseline budget. A substantial share of this budget is allocated to provinces for health and education. This increase in provincial baselines is intended to finance health and education for salary increases as well as the Occupational Specific Dispensation (OSD). Other resources are allocated for antiretroviral treatment, workbooks for early phases of schooling and housing programmes. Infrastructure programmes including the Municipal Infrastructure Grant (MIG) received an additional allocation. The additional budget to national departments will finance the child support grant, rural development, the criminal justice sector as well as industrial development and job creation. The consolidated expenditure of government is expected to be R841.4 billion, and R1 052.8 billion in 2009.10 and 2012/13 financial years, respectively.

1. Overview of the Budget Adjustments

The downturn in the global economy and various domestic constraints have affected millions of South Africans where the economy has contracted by 2 per cent in the first quarter of 2009 which was eventually estimated to 1.9 per cent for 2009. However, an estimate of 1.5 per cent economic growth in 2010 has been projected in the domestic economy as a result of an increase in government spending on transport projects and soccer stadiums for the 2010 Federation of International Football Association (FIFA) World Cup. Domestic economy is driven by a strong investment growth and continuous investment in the economic infrastructure to provide an important support to economic recovery, reduce infrastructure backlogs and attract more private investors. The International Monetary Fund (IMF) expects the rest of the world to grow by approximately 3.1 per cent in 2010. The additional R14 billion that has been proposed in the Adjustments Appropriation Bill is welcomed. This addition includes R5 billion on the higher interest costs and R9 billion in higher non interest spending. It is noted that, initially, the overall budget was R738.5 billion and this has been adjusted to R752.5 billion during the adjustment period. While the departments have only managed to spend R368 billion in the first six months of the 2009/10 fiscal year, the MTBPS allocates an additional budget of R14 billion.

The Committee supports the proposed increased lending capabilities of the Development Bank of Southern Africa (DBSA) by about R102 billion over the next five years to focus and contribute to development. The Committee also supports an additional funding of R1 billion a year in the provincial equitable share for spending in frontline services particularly in education and health in order to accommodate higher salaries for teachers and doctors and to strengthen good governance and oversight in provinces and municipalities.

Public infrastructure is allocated R872 billion over the medium term to invest in school buildings, public transport, water and sanitation. The Committee welcomes this allocation, as infrastructure development is needed to boost the recovery of the economy. Careful planning and monitoring of infrastructure projects is essential to limit the risk of costs escalation.

An amount of R1.5 billion, which emanated from the rollovers arising from commitments related to unspent funds in the 2008/09 budget, has been noted. Among other things, the non-payment and non-completion of projects within specific timeframes result in unspent funds. This state of affairs remains a cause for concern according to the Committee as most of these projects are regarded as essential projects which are associated with job creation as well as with the 2010 FIFA World Cup. This is indicative of poor planning and non compliance with certain supply chain management and finance legislative frameworks.

The Committee welcomes the additional funding of R12 billion in order to the increase in the public service’s compensation of employees particularly with regard to the Occupational Specific Dispensation (OSD) agreements; it is hoped that this will assist in retaining scarce skills in the public sector such as those of doctors, civil engineers, architects etc.

The Committee supports the additional allocation of R509 million to compensate municipalities for the escalating costs of providing free basic services such as water and electricity to citizens that qualify for free basic services under the indigent policy of municipalities. This will assist in reducing pressure imposed by the costs of free basic services to municipal budgets which must be provided to indigent households in order to keep up with the Bill of Rights as stipulated in chapter 2 of the Constitution of the Republic of South Africa, 1996.

The 2009 MTBPS proposes a culture of savings rather than under-spending. It was indicated that there is a need for the government to identify areas of savings through rearrangement of government priorities and reduction of spending in non-core functions. This can be achieved through reduction in irregularities, corruption and fraud as well as reduction of fruitless and wasteful expenditure, and creating a culture of doing more with less.

1. Budget Estimates for the 2009/10 Mid-Year

National departments were allocated R399.6 billion in the 2009/10 financial year, excluding the direct charge. The Adjustments Appropriation Bill proposes an additional spending of R9.2 billion for national departments in the 2009/10 financial year. Of these funds, R1.9 billion was rolled over from the previous year’s budget. It was indicated to the Committee during public hearings that rollover funds have already been committed by the departments. Among the Committee’s concerns was a lack of spending of infrastructure budgets by various departments. This pattern was evident in respect of the MIG projects, which required a rollover of R287.8 million.

The budget adjustments propose a shift of R2.3 million from the Department of Cooperative Governance and Traditional Affairs (CoGTA) to the Department of Rural Development and Land Reform. This shift was necessitated by the transfer of the rural development programme from CoGTA to the Department of Rural Development and Land Reform, in line with the reconfigured government structure. The Department of Cooperative Governance and Traditional Affairs (CoGTA) indicated that the lack of spending in MIG was due to 33 municipalities that could not spend their allocations. CoGTA indicated its intention to withhold funds and request National Treasury to redirect them to spending municipalities. It is determined that of the 33 municipalities that did not appropriately spend on the MIG, three were affected by the recent service delivery protests. These were the Mbombela Local Municipality, Nala Local Municipality and the City of Johannesburg.

The lack of spending on the MIG is a matter of serious concern, particularly in light of recent service delivery protests in some of the under-spending municipalities. The Committee notes that the shifting of funds from under-spending to other municipalities would be problematic as it could create infrastructure backlogs for the under-spending municipalities. This intervention might therefore have undesired political outcomes. Needless to say, its constitutionality and legality might be questionable.

The Department of Public Works is allocated an additional amount of R524.9 million for unforeseen and unavoidable expenditure. This includes funds for the offices and residences of new Ministers and Deputy Ministers, the Devolution of Property Rates Grant and salary increases. Some of these funds are for the creation of new jobs through the Expanded Public Works Programmes (EPWP) to meet the targets announced by the President, His Excellency Mr. Jacob Gedley’hlekisa Zuma, during the State of the Nation address. The Department rolled over R116.7 million for infrastructure projects from the previous financial year. These include funds for Re Kgabisa Tshwane projects, upgrading of some buildings in Bloemfontein, land ports of entry development projects and prestige accommodation. The Department does not seem to have enough capabilities to spend funds allocated to the Re Kgabisa Tshwane and Prestige projects. Funds from these programmes have been rolled over since the 2006/07 financial year. With regard to the prestige projects, the Department has indicated that work has already been done for Ministerial houses but the payment was still to be made to the Property Management Trading Entity (PMTE). The Department also indicated that there is a challenge in the conceptualisation of the Re Kgabisa Tshwane projects. It is only responsible for the purchasing of the land while the actual construction is done through a Public-Private Partnership (PPP). The Department indicated its intention to contribute to the comprehensive rural development strategy through this programme.

The Committee understands the purpose of the Re Kgabisa Tshwane projects to be the refurbishment and provision of office space for national departments. It also understands its operations to be limited to the City of Tshwane and any proposal to extend the projects beyond this might be outside its scope and purpose. The persistent rollover of funds for similar projects is a matter of concern, since funds could have been redirected to urgent priorities.

The Adjustments Appropriation Bill proposes a shift of functions from the Department of Water Affairs and Forestry due to the reconfiguration of government structure. This shift of functions resulted in R487.6 million originally allocated to this Department being shifted to the Department of Agriculture, Forestry and Fisheries. The shift of the sanitation function to the Department of Human Settlements has not been fully implemented and no funds have been shifted for this purpose. The Department rolled over R232.3 million of the funds for capital projects from the previous financial year. These include funds for the construction of the De Hoop Dam and the Regional Bulk Infrastructure grant. The funds for the De Hoop Dam have been rolled over since the 2007/08 financial year. The Department has indicated that delays in finalising a memorandum of agreement with 23 mines contributed to the slow spending in the 2008/09 financial year. Furthermore, continuous rainfalls delayed the timeous completion of projects. The late submission of invoices delayed spending on the Regional Bulk Infrastructure.

The Department of Rural Development and Land Reform indicated that it had requested an additional budget of R4.4 billion for the 2009/10 budget adjustment to fund rural development, new offices of the Ministry as well as the Restitution and Deeds Trading Entity. Due to the bad economic conditions, the Department revised its request downward to R1.7 billion. An additional budget of R292 million was allocated to rural development, R9 million to the Ministry and R31 million for general salary adjustments. Of the R3.5 billion requested for the Restitution programme, only an additional budget of R1.1 billion was granted. The Department indicated that it might be difficult to meet the objectives of rural development due to budget constraints. Shifting of funds will need to be made to finance the restitution programme.

The Committee is in agreement with the Department that the budget allocation to the Restitution programme is not sufficient to support the development needs of the country. The Restitution programme had already spent 91 per cent of its budget by the end of the second quarter and the lack of sufficient funding in this area compromises the rural development agenda of government. It is reported that this challenge is worsened by the attitude of land owners who inflate land prices when negotiating the land sale agreement with government and the cost of land is selling at the price which is three times more than the market price which makes the purchase of land expensive. This is worrying since land is central to the implementation of the government’s comprehensive rural strategy and if resources are not prioritised for land reform programmes, the objectives of this strategy might not be achieved.

The Department of Education received a total Adjustment of R561.686 million. The Department rolled over R8.6 million for operations, R3.5 million for HIV/Aids conditional grant (for Limpopo province) and R9 million for new functions of the Council on Higher Education (CHE). The Department also received an additional budget of R8 million for the new ministry of Higher Education. This will go towards sustaining the ministerial offices and those of the Director-General. In future, it is anticipated that more funds will be required for the running of the new Department of Higher Education. A substantial amount of R524.1 million was allocated for workbooks for literacy and numeracy for grades 1 to 6 learners in quintiles 1 to 3 schools. An amount of R8.5 million was allocated for increase in improvement of conditions of service.

The Department indicated that R94.4 million was requested for examination and assessment, and R291.7 million for the National School Nutrition Programme was requested but funding was not provided for these. The Department noted that the Occupational Specific Dispensation for Educators was not fully funded. The Committee expresses is concerned about the lack of sufficient funding in the National School Nutrition Programme.

1. Medium Term Spending Priorities

The Minister of Finance indicated to a joint meeting of the Finance and Appropriations committees that ambitions of government are curtailed due to the financial pressures. He noted that borrowings will burden some parts of future generations and that savings will be made in government spending. The Minister called upon the business sector to commit and outline its role in the government savings programme. He indicated that employment is not as fast as expected and that it was necessary to improve training programmes and basic education in South Africa. Over the period ahead, more people will be employed for the front line and less in the administration. Matric vouchers programme is proposed to subsidise the costs for employers in hiring persons with matric certificates without lowering applicable salaries. The Minister reiterated government’s commitment to infrastructure investment. With regard to uprooting corruption in government funds, a task team has been established to look at each case of corruption and weaknesses in the procurement system. He called on society at large to assist government in fighting the culture of corruption. It was indicated that spending priorities support the policy priorities. The Financial and Fiscal Commission (FFC) noted that, the national proportion of the Division of Revenue continues to decline over the Medium Term Expenditure Framework (MTEF) from 50.1 per cent in 2009/10 financial year to 46.9 per cent in the 2012/13 financial year. On the other hand the provincial and local proportions are increasing over the MTEF (refer to table 1 below).

Table 1: Division of nationally collected revenue


|         |2009/10       |20010/11    |2011/12     |2012/13  | |         |revised       |            |            |         | |% share  |              |Medium-term estimates               | |National |50.1          |48.3        |47          |46.9     | |Provincia|42.6          |43.6        |44.4        |44       | |l        |              |            |            |         | |Local    |  7.3         |  8         |  8.7       |  9.1    |

Source: FFC presentation

The Commission was particularly concerned about the unanticipated wage bill. It suggested that there should be a deliberate attempt to synchronise the centralized bargaining process of the public sector with the budget process to reduce undue burden to sub-nationals by decisions over which they have no direct control. The high wage bill led to immense pressure on provincial budgets. Of the R39 billion added to the provincial fiscus, R32.7 billion is transferred in the form of equitable share while R7.1 billion is transferred in the form of conditional grants over the MTEF. The Commission highlighted the need to identify which conditional grants were impacted by the increase.

5.1 Expanding employment and safeguard social security

The MTBPS proposes a shifting of resources towards labour intensive sectors and the creation of jobs in the delivery of public services. While government expects all its prioritised programmes to contribute to job creation, its main target for expanding employment is skills development and training, infrastructure development and the expanded public works programme. Government intends to create 4.5 million jobs over the next five years. An amount of R114.5 million is provided for community works programme in the budget adjustments in the current financial year. This programme is expected to create 180 000 full time jobs by 2014. New incentives to encourage government departments and municipalities to use their budgets for labour intensive programmes in the infrastructure sector are proposed. These incentives will be extended to the environmental, cultural and social sectors.

The Human Sciences Research Council (HSRC) welcomed the government’s commitment to generate sustainable employment. It noted however that it was not always easy to make the connection between the need to create employment and the budget. It was critical for the country not to compete purely on price but also to explore product development, venture capital and market access. Continued infrastructure spending is critical in creating jobs. The HSRC highlighted a need to prioritise the youth over the next four years of the current administration. It is reported that more than 50 per cent of the youth leaving school are unemployed. About 65 per cent of black youth leaving school is reported to be unemployed. To this end the provincial grant aimed at sport and recreation was seen to be inadequate. The HSRC noted that this grant could be critical pre-labour market intervention in the context where youth was marginalised from most social organisations. In addition, the HSRC recommended the introduction of a youth transitional jobs scheme. It is of the view that commitment to further education and training is critical. However, the budget set a target of 350 000 enrolments by 2014 which was a third of the HSRC’s expectations.

The Department of Public Works (DPW) plays a leading role in the job creation initiatives through the Expanded Public Works Programme (EPWP) and other infrastructure projects. It has received an additional budget of R9.7 billion over the Medium Term Expenditure Framework (MTEF) period. This includes R3.5 billion for EPWP and R4.4 billion for infrastructure budget. The Department has been allocated additional allocation of R835.8 million in the 2010/11 financial year to strengthen the EPWP incentive scheme. This scheme will be extended to such sectors as the social sector, environmental sector and community work programmes. Labour intensive methods are enforced through this scheme with ongoing monitoring done to ensure that empowerment is attained. Of the additional budget for infrastructure, R451.1 million is allocated for the 2010/11 financial year. This goes to Border Control Operational Coordinating Committee (BCOCC). The DPW is the custodian of immovable assets at 54 land ports of entry. This budget goes for infrastructural development at the land ports of entry by 2010 and beyond. The implementation of this programme is expected to be labour intensive and pro-Black Economic Empowerment (BEE).

An additional budget also provides for R771.6 million in 2010/11 for the construction of a new Parliamentary precinct, construction of parking bays and a multipurpose centre. This project is expected to cost R2 billion and the feasibility study has been completed. The budget also provides for additional R16.2 million in 2010/11 financial year for accessibility to State-owned buildings and R214.8 million to address the problem of old and inefficient water works systems in State-owned buildings. The DPW indicated its challenges in attracting strategic and technical skills, and the budgetary constraints make it more difficult to retain skills and create the necessary capacity needed to maintain and manage immovable property.

The DPW indicated that it is still enhancing the asset register and the valuation of State-owned buildings will not be done in the 2009/10 financial year. It also indicated that the chief directorate was established within the Department to focus on the asset register. However, the Committee is concerned about the slow progress in the development of the asset register. The department continuously receives qualified audit outcomes as a result of the outstanding asset register. The Committee calls upon the department to capacitate itself in this respect in view of the fact that it is responsible for all other departments’ asset registers.

The Department of Water and Environmental Affairs plays a crucial role in the job creation initiatives of government. For the period ahead the Department plans to contribute in job creation, particularly in rural areas, through its construction programmes. It intends to fill vacant positions in its regional offices and to be less dependant on consultants. The Department values the role of the Small Medium and Macro Enterprises (SMMEs) in creating jobs and stimulating economic growth, and as such will appoint SMMEs for its work. The Department contributes to the EPWP through the Working for Fire and Working for Water programmes. The Working for Fire programme is allocated R184.4 million in 2010/11 which increases to R254.6 million in 2012/13. The Working for Water programme is allocated R579.9 million in 2010/11, which increases to R855.5 million in 2012/13. For its capital expenditure, the Department proposed an additional budget of R4.8 billion, R10.9 billion and R8.1 billion in 2010/11, 2011/12 and 2012/13 financial years, respectively. The proposed additional budget was scaled down to R2.4 billion, R4.1 billion and R8.4 billion in 2010/11, 2011/12 and 2012/13 financial years, respectively. The Department indicated that no allocation was made for other projects after the scaling down. These include Mooi–Mngeni Transfer Scheme, Komati Water Augmentation Project and Mokolo and Crocodile River Water Augmentation Project. The Department indicated that the National Treasury was of a view that these projects can be funded off-budget through the Trans-Caledon Tunnel Authority (TCTA). Part of the mandate of the TCTA is to fundraise for bulk water infrastructure through loans from the commercial water users that benefit from these projects.

The Committee views rural development as one of the urgent priorities of government, and notes that some of the water scheme projects that are not funded are in rural areas. Their funding from the fiscus would support government’s commitment to develop rural areas, since farming activities are expected to be at the centre of rural development. These farming activities would create self employment and create more job opportunities that are much needed by rural youth. It is the Committee’s view that funds should have been directed to these programmes in support of government priorities and to ensure participation of rural communities in the country’s economic activities. Furthermore, in interacting with the Department, it became evident that additional funding for the refurbishment of water infrastructure might not adequately cover the maintenance needs of infrastructure. The lack of sufficient funding in this area introduces new risks of collapse in infrastructure. If funds are not made available for the maintenance of water infrastructure this might lead to challenges similar to those experienced during the electricity crisis.

The Department of Cooperative Governance and Traditional Affairs recognises that the role of municipalities is important in job creation through programmes aimed at building infrastructure. Its role in this regard is to provide support to municipalities to ensure prudent management of funds earmarked for infrastructure development and to ensure that they achieve the desired objectives. It undertook to increase its monitoring activities to ensure value for money.

5.2 Improving the Quality of Education and Skills Development

Over the next three years, government intends to improve literacy and numeracy by providing workbooks to children in poorly-resourced schools. The target of learners who will benefit from workbooks will increase from 3.5 million in 2010/11 financial year to 5.5 million in 2011/12 financial year. Improving access and quality of education will be prioritised and additional funds are allocated to building of schools and teacher training. Furthermore, a new conditional grant will be introduced to provide additional resources for the improvement of the education system. Government intends to increase the coverage of the national schools nutrition programme to reach more learners and to improve the quality of meals.

A study conducted by the HSRC showed that there are structures aimed at improving governance in schools, but these structures are not being fully utilised. Further, the criterion used for promoting teachers was not known among teachers. Government needs to be more transparent in this respect. According to the HSRC, there is a need for universal access to the Early Childhood Development (ECD) programme and the number of 0-4 year old children in the ECD should doubled by 2014. This will reduce the number of grade 1 learners who start school without adequate foundation and preparation at ECD level.

The Committee supports the prioritisation of resources to improve the quality of education and the development of skills. The education system is an important factor in producing skills that are much needed by the economy. Many government departments have always under-spent over the years in personnel budget as a result of lack of skills, particularly in the engineering sector. The Department of Public Works indicated during the public hearings that, technical skills remain a challenge that impedes the execution of its projects. The national education system coupled with other skills development institutions play a crucial role in providing social cohesion and skilled human resources in the developmental state. The requirements of the economy always play a central part in determining the output of the education and training systems. In order for government to deliver appropriate skills to the workplace, strong controls over the institutions responsible for education and training and investment of resources to education are important.

During the public hearings, the Department of Education was requested to attend to the concerns raised about the moral of teachers at schools with a view to address the causes thereof. Notwithstanding the fact that the Further Education and Training colleges now resided with the newly established Department of Higher Education, the Department was requested to ensure that service delivery is not compromised in the process of restructuring the Education Department and the transfer of functions in this regard. The Department was also requested to ensure the improvement of the quality of education, the provision of adequate Learner Teacher Support Material (LTSM) and adequate provision of the National School Nutrition Programme to all the relevant beneficiaries as well as to ensure that the workbooks distributed by the Department reached all the targeted learners.

5.3 Enhancing the Quality of Heath Care

It was reported that the Department of Health has developed a 10-point plan to improve the quality of health services. This plan includes overhauling the management and operation of public hospitals, improving human resource planning, enhancing staffing levels and ensuring efficient procurement of medicine and medical drugs. These are seen as initiatives that lay foundation for a national health insurance system. In order to stabilize the health sector and to ensure the implementation of the ten-point plan a resolution was taken to: • Request the National Treasury to ensure that there is no budget shortfall for the Occupational Specific Dispensation (OSD); • Request full funding for personnel where the posts were filled; • Request full funding for the ARV treatment programme; and • Ensure that there is funding for priority health services such as blood services and the laboratories.

The fight against HIV and Aids is a key priority for the Department of Health and the target for new entrants to the treatment intake is expected to be more than 300 000 a year and more than 900 000 people are expected to receive antiretroviral treatment by 2011/12 financial year. Additional funds were made available over the medium-term period for expansion of the treatment programme to accommodate a higher number of people on antiretroviral treatment. On the target of 900 000 people who are expected to receive treatment by 2011/12, the HSRC argued that this target would be reached earlier. This conclusion was based on a study it conducted which showed that 800 000 people with HIV/AIDS are already on ARV treatment.

The HSRC noted that, according to a study conducted by the University of Cape Town, service conditions in the public sector were not vastly different from those in the private sector. But, the HSRC reported that there are problems in the public health sector and funds are needed to address these problems. The HSRC also noted that the 2009 MTBPS did not provide adequate funding to address the quality of service in the public health sector. Another challenge was the skills flight as doctors and nurses leave South Africa for other countries. The amount allocated for the Occupational Specific Dispensation was welcome with the understanding that it would retain the health professionals in the public sector. However, the HSRC indicated that there has always been under-funding of the public health sector and this has resulted in the poor quality of health services. The 8.6 per cent increase in the health budget is insufficient given the under-funding that has happened over a long time.

The Department of Health received a total increase of R1.4 billion. Of the R1.4 billion, an amount of R231.1 million is for roll over funds for the 2008/09 financial year resulting in an increase of 17 per cent. An amount of R160 million is earmarked for the H1N1 Influenza pandemic. A further R900 million has been allocated for the comprehensive HIV/AIDS care, R20 million for countrywide measles and polio immunization campaign and R30 million for the 2010 World Cup Health Preparation Strategy Grant. While it seems as if no allocation was made in the 2009 MTBPS for the National Health Insurance (NHI), the Department indicated that the ten-point plan relates to the NHI. The funds for various programmes within the ten-point plan are funds for the NHI. The details of the NHI would be made available once the Minister of Health has gone through the relevant processes at the Cabinet level.

New salary scales for doctors, dentists, pharmacists and emergency medical personnel will be phased in over the two years. An amount of R400 million was requested for the OSD of doctors for the respective financial years over the MTEF. The different categories of health professionals were being dealt with in phases. It was reported that the doctors and pharmacists have been catered for and a review of their OSD would be reviewed in 2010.

5.4 Rolling out a Comprehensive Rural Development Strategy

The comprehensive rural development programme aims to raise rural income, increase food production, improve the viability of small farms and draw on the economic potential of rural areas. A two-year pilot project was launched in Limpopo and will inform the rollout of the programme. Support to the beneficiaries of land will be stepped up to properly skill and equip these beneficiaries. An additional number of 1000 extension officers will be recruited over the next three years and their skills level will be enhanced and necessary tools will be provided. An amount of R4.1 billion is allocated to provinces through respective grants to support emerging farmers. Agricultural starter packs will be provided to 140 000 households per year. A total spending on rural development is expected to rise from approximately R6 billion in 2009/10 financial year to approximately R8 billion in 2012/13 financial year. The HSRC is of the view that rural areas have been neglected for many years. Poor conditions in respect of water and land are among the challenges experienced in these areas. About 40 per cent of the South African population lives in rural areas and less than 10 per cent are economically active, mostly in agricultural activities. This was noted as a sign of lack of support and channelling of resources. Growing spending on rural development from R6 billion to R8 billion by 2012/13 financial year was noted to be a large increase but still very small relative to the challenge and levels of neglect in rural areas.

While the HSRC appreciates the dramatic effect of social grants in reducing poverty and hunger, it noted that approximately 50 per cent of households still experienced hunger and under-nutrition. Furthermore, 50 to 80 per cent of households could not afford minimum nutrition at current prices. Rural households spend 9 to 15 per cent more than urban households for the same basic food basket. According to the HSRC 51 per cent of all severely hungry households qualified for grants but did not receive them. To this end, the HSRC recommended that a policy should be formulated to guide the urgent rolling out of grants in a more comprehensive way while expanding the household food production in the form of food gardening. It added that budgets aimed at improving food security should be ring-fenced and monitored stating that it is expensive to be poor, but more expensive to be hungry.

The HSRC was of a view that, the budget as outlined in the 2009 MTBPS is constraining given the amount of work that the department had to embark upon. Out of the 18 Land Redistribution for Agricultural Development (LRAD) projects that had been initiated by the former Department of Land Affairs, only two of them are still in place. Others have collapsed and the land was sold back to its original white owners. The HSRC noted that, for the Department of Rural Development to successfully carry out its mandate, more funding and human resources are required. The programmatic budget structure of the Department of Rural Development and Land Reform has been condensed from 7 to 5 programmes to reflect the new rural development mandate. The Department requested an additional budget of R18.3 billion over the medium term. Rural Development and Restitution programmes together requested R16.5 billion (90 per cent) of the Departments total request. There is no baseline budget over the medium term for the rural development programme and the department indicated that the indicative baseline for the Restitution over the MTEF (R2.2 billion) is less than the 2007/08 level. The Department of Water Affairs (DWA) indicated that it will support rural development through investing in water resource infrastructure in rural areas to make water available for economic growth and development. Furthermore, the Department of Water Affairs intends giving employment preferences to the people from rural areas where DWA project exists.

The Committee is of the view that one of the key priorities of government is rural development, which the country cannot afford to postpone any longer. Rural communities have been marginalised and neglected over the years through the uneven distribution of resources between rural and urban areas. This has resulted in a lack of economic activities in rural areas, thus forcing people to migrate from rural areas to urban areas in search of employment and better living conditions. A serious burden is put on government’s social programmes, like housing, water, and electricity as a result of this phenomenon. The Committee notes the underdevelopment of rural areas in South Africa and the neglect they have been experiencing over the years. The lack of infrastructure to support the initiatives of rural communities is another worrying factor. The Committee is of a view that budget in this area does not recognise the urgent need and intervention to deal with the backlog in rural areas. It supports the HSRC’s recommendations that more funds should be channelled for rural development.

Another concern of the Committee is a lack of sufficient funding in the Restitution programme. The lack of sufficient funding in this area compromises the rural development agenda of government. In some cases, this problem is worsened by the attitude of land owners who inflate their land prices.

5.5 Creating a Built Environment to Support Economic Growth

Infrastructure and the service delivery function need to complement each other in order to promote efficiency, employment and integrated development. Government continues to prioritise spending on housing with a goal to eradicate informal settlements. The budget makes provision for an increase in subsidy and for additional houses to be built. As a way of investing in infrastructure, the Municipal Infrastructure Grant (MIG) received an additional budget of R2.5 billion, increasing to R45.9 billion over the medium term. The Neighbourhood Development Partnership Grant will receive additional resources over the three-year period. These are for regeneration of townships projects. A total of R8.2 billion is added to local government equitable share over the MTEF period to cater for the increased costs of bulk services.

The Financial and Fiscal Commission (FFC) reiterated its previous recommendation that there should be a link between the Municipal Infrastructure Grant and the Local Government Equitable Shares (LES). This is such that, as infrastructure is rolled out through the MIG allocations to municipalities, and those from the LES reflect the need associated with the infrastructure that is been rolled out. This would eliminate the current challenge where municipalities roll out infrastructure without having the necessary funding to maintain it. Moreover, the performance of the Neighborhood Development Grant needs to be reviewed given its poor spending over the years.

The Department of Cooperative Governance and Traditional Affairs (CoGTA) initiated alternatives to augment and complement the management of additional budget over the MTEF period. In striving to achieve clean audits and good financial management in municipalities by 2014, the department has launched Operation Clean Audit campaign. A key objective of this campaign will be that of building and ensuring prudent financial management of public resources in municipalities. The Department will also launch a programme aimed at improving revenue enhancement in municipalities. Presently, municipalities are owed between R50 to R53 billion by residents, businesses and other government departments. This programme of revenue enhancement will assist municipalities to become more financially viable as they seek to accelerate the roll-out of their service delivery programmes. The Department is also establishing a programme that will allow close monitoring of funds that are allocated to municipalities for infrastructure development. The main objective of the latter programme is to ascertain if government is deriving value-for-money from the scarce funds allocated to municipalities. CoGTA indicated that the MIG faces some challenges. These include MIG funds being consumed by bank overdrafts of certain municipalities, some legislative impediments, poor and weak capacity in planning, project management and financial management in some municipalities, and lack of continuity and sustainability in municipal management.

The Committee commends the initiatives that are provided by CoGTA to increase capacity in municipalities, particularly the Operation Clean Audit

1. However, more intervention is needed in the implementation of the MIG projects. The ability to spend funds that are allocated to the MIG is a matter of serious concern to the Committee. The Committee views the role played by the MIG in the development of infrastructure as critical, particularly for those municipalities who do not have revenue base. The tendency of under-spending in the MIG is a cause for concern since some of the service delivery aspects, particularly infrastructure, are linked to this grant. The Committee recognises the role of CoGTA to be to give support to municipalities without capacity. Such intervention from CoGTA, National Treasury, Provincial Treasury and District Municipalities is required to support municipalities who struggle to implement infrastructure projects.

5.6 A Broad-Based Approach to Fighting Crime

Government has committed to curbing the high level of crime. The government understands the fight against crime to be including enhanced partnerships, strengthened social security and job creation. The aim of government is to recruit an additional 22 447 police personnel by 2012/13 to strengthen detective services and crime intelligence. The fight against crime will be boosted by a proposed allocation for the Directorate of Priority Crime Investigation, which will increase its investigators to 2 400 by 2012/13. The additional budget, in this regard, supports the implementation of the Children’s Act of 2005, the Child Justice Act of 2008 and the Sexual Offences and Related Matters Act of 2007.

The HSRC is of the view that commendable work has been done in the fight against crime; however there has been a lot of emphasis in the use of force and less emphasis on working with communities and raising awareness among communities. The Committee supports initiatives that seeks to curb crime in our society.

1. Key Findings

Having considered and deliberated on the 2009 MTBPS, the Select Committee on Appropriations notes the following:

6.1 Communities in rural areas are not receiving serious attention they deserve. Rural communities have been neglected for many years in the past. Given the current economic downturn, life in rural areas is difficult. This undesirable situation has led, and continues to lead, to the migration of people from rural areas to urban areas in search of decent jobs and better living condition; and

1. The need to contain state expenditure as a percentage of gross domestic product and fully supports the strategy of government to ‘do more with less’, namely:

    ➢ 6.2.1    Find savings through reduced spending on non-core
      functions and activities, including shifting resources from
      administrative components to frontline services;
    ➢ 6.2.2    Rationalise public entities and agencies to save
      money and improve accountability;
    ➢ 6.2.3    Review public spending to weed out poorly performing
      programmes, low priority activities and ineffective policies;
    ➢ 6.2.4    Reform procurement systems to reduce corruption and
      obtain better value of money, including giving consideration
      to centralising the procurement of selected goods and
      services; and
    ➢ 6.2.5    Change the culture of the public service to reduce
      waste and to prevent extravagant spending, shoddy work and
      corruption.
   

2. Recommendations

The Select Committee on Appropriations, having satisfied the requirement of section 6(8) of the Money Bills Amendment Procedure and Related Matters Act, recommends that:

7.1 The National Treasury considers allocating additional funds during the 2010 National Budget to the Department of Rural Development and Land Reform for economic development of rural communities. The Committee also recommends that: 7.1.1 The Department of Public Works extends their Expanded Public Works Programme to rural areas in the medium and long term with the aim of creating decent jobs and providing much-needed infrastructure; 7.1.2 The Department of Water and Environmental Affairs expands their water projects to rural areas in order to provide them with water for agricultural and domestic use and providing people in rural areas with decent jobs; and 7.1.3 The Department of Cooperative Governance and Traditional Affairs develops programmes to assist municipalities in rural areas in their development agenda.

7.2 The Committee recommends that the training layoff scheme and other programmes encapsulated in the Framework Response to Global Economic Crisis by the National Economic Development and Labour Council (NEDLAC) are implemented within six (6) months to help mitigate the effects of the economic crisis;

7.3 The Committee recommends that government extend the wage-based incentive mechanism to other sectors to help drive a massive increase in employment creation;

7.4 The Committee recommends that the Presidency reviews the efficiency and effectiveness (outcomes) of education expenditure that is amongst the highest, as a percentage of gross domestic product, in the world;

7.5 The Committee recommends that government facilitate the implementation of the much-needed National Health Insurance system;

7.6 The Committee recommends that National Treasury, Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs work together in capacitating under-spending municipalities instead of shifting funds from under-spending municipalities to adequately spending municipalities as the latter practice will create additional backlog in service delivery; and

7.7 The Committee recommends that additional increases in health budgets are appropriated in 2010 to improve the efficiency and quality of service in the public sector.

Report to be considered.

CREDA INSERT – PAGES 1690 - 1695

                      TUESDAY, 17 NOVEMBER 2009

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 17 November
     2009:


      a) Adjustments Appropriation Bill [B 13 – 2009] (National
         Assembly – sec 77).


      b) Repeal of the Black Administration Act and Amendment of
         Certain Laws Amendment Bill [B 15 – 2009] (National Assembly –
         sec 75). TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Finance

   (a) Agreement between the Government of the Republic of South Africa and the Government of Canada regarding Mutual Assistance between their Customs Administrations, tabled in terms of Section 231 (3) of the Constitution of the Republic of South Africa, 1996

   (b) Explanatory Memorandum to the Customs Agreement between the Government of the Republic of South Africa and the Government of Canada.

COMMITTEE REPORTS

National Council of Provinces

1. REPORT OF THE SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON THE OVERSIGHT VISIT TO NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY, DATED 17 NOVEMBER 2009

2. Background and Overview

1.1 The Select Committee on Co-operative Governance and Traditional Affairs, having considered the request by the National Council of Provinces (NCOP) to consider and report on the intervention notice invoked in Ngaka Modiri Molema District Municipality in terms of section 139 (1)(b) of the Constitution, the Committee report as follows:

1.2 In terms of section 139(1)(b), when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfilment of that obligation, including assuming responsibility for the relevant obligation in that municipality.

1.3 In terms of NCOP rule 101, the Office of the Chairperson of the NCOP referred the notice of intervention by the North-West MEC for Developmental Local Government and Housing in the affairs of Ngaka Modiri Molema District Municipality, to the Committee for consideration and reporting. On 3 November 2009, the Committee then took a decision during the proceedings of its meeting to conduct an oversight intervention visit to the Municipality during 13 November 2009.

1. Objective of the Oversight Visit

2.1 The main objectives of the oversight visit were to determine whether procedural requirements have been met and also to verify whether the provincial executive has used its discretion appropriately before the Committee can approve/disapprove the intervention. Through the deliberations and interaction with internal and external stakeholders, the Committee wanted to determine how the provincial executive intends to restore the fulfilment of the relevant obligations and ensure fulfilment in the long-term. The aim being to ensure intergovernmental checks and balances aimed at guarding the integrity and efficiency of the intervention process.

1. Composition of the Delegation

3.1 The Committee Delegation composed of the following Members of Parliament and officials: Hon MH Mokgobi, Limpopo (ANC); Hon AG Matila, Gauteng (ANC); Hon JM Bekker, Western Cape (DA); Mr TM Manele, Committee Secretary (Committee Section); Mr N Mfuku, Content Adviser (Committee Section); Mr L Ngqameni, Intern (Committee Section) and Mr D Mokoena, Committee Researcher (Research Unit).

1. Introduction

4.1 On 16 July 2009 the Provincial Executive Council (PEC) in North-West Province resolved to invoked section 139 (1)(b) of the Constitution in the Ngaka Modiri Molema District Municipality. Subsequently the Office of the Chairperson of the NCOP was informed of the PEC’s decision to intervene in the affairs of the Municipality, by the North-West MEC for Developmental Local Government and Housing.

1. Problems Identified at the Municipality by the PEC

5.1 The main issues which led the PEC to invoke the provisions of section 139(1)(b) of the Constitution and assuming the executive responsibilities at Ngaka Modiri Molema District Municipality, was a result of a thorough eight months assessment of the situation by the provincial Department of Local Government and Housing, as well as the national Department of Co-operative Governance and Traditional Affairs. During the assessment period, a ministerial task team led by the Minister of Co-operative Governance and Traditional Affairs was established to identify areas and sources of conflict than impact negatively on service delivery and governance in the Municipality.

5.2 The findings of the ministerial task team relates to performance of functions by the Municipality beyond its constitutional and legislative mandate; dysfunctional political governance structure; approval of salary adjustment agreement was in breach of the main collective agreement; non–compliance with the legislative provisioning governing local government sphere; irregular, fruitless and wasteful expenditure; breakdown of service delivery and instability caused by mismanagement of union strike; dismissal of the Municipal Manager and allegation of fraud, corruption and mismanagement.

5.3 Subsequent to the ministerial task team findings, the MEC responsible for Developmental Local Government and Housing appointed an Administrator to execute all executive obligations and functions of the Municipality, with effect from 1 July 2009.

1. Oversight Visit at Ngaka Modiri Molema District Municipality

6.1 On the 13 November 2009, the Delegation of the Committee had interactive and robust engagements with the internal and external stakeholder of the Ngaka Modiri Molema District Municipality. The main internal stakeholders the Delegation interacted with in the Municipality included the Speaker, Mayor, Chief Whip, Ward Committee Members and Councillors. Since the Administrator was in Bloemfontein, he delegated the Acting Municipal Manager to table his progress report on his behalf. The main external stakeholders the delegation interacted included members of the community forums and non- governmental organization. 6.2 For the purpose of this report, the submissions made by both internal and external stakeholders are structured based on the five key performance areas of local government which are: Municipal Transformation; Basic Service Delivery; Local Economic Development; Municipal Financial Viability and Management as well as Good Governance and Public Participation.

(A). Municipal Transformation and Organisational Development

6.3 Municipal Council: The submissions made by the Executive Mayor on behalf of the Mayoral Committee indicated that the Municipality welcomed the intervention in its affairs by the PEC of the North West Province. The Executive Mayor indicated that prior to the 29 October 2009, there was confusion by the Municipal Council on the roles and responsibilities of the appointed Administrator, as well as the process and the manner in which the intervention was handled by the provincial Department of Local Government and Housing. Furthermore, there was political infighting in the Municipality which contributed to the revoking of section 139 (1)(b) of the Constitution, as a result of the former Executive Mayor (The new Executive Mayor assumed responsibility from September 2009). In essence, it was reported that the former Executive Mayor’s management style contributed to the failure of the Municipality.

6.4 Some of the Municipal transformation and organisational development challenges highlighted by the Municipal Council included higher level of vacancies in critical positions; manifestation of strikes; salary agreement which has not yet been finalised with organised labour and the salary agreements reached outside the bargaining council entered into by former Municipal Manager without Council approval.

6.5 Administrator: The Administrator’s report to the Committee Delegation reflected inherent gaps identified in areas of organogram; performance management systems; pending labour related cases and lack of proper record systems in the operation of the Municipality. However, since the intervention there are regular engagements with the unions to resolve the labour disputes on salaries. Furthermore, a performance management system has been put in place, and was aligned to the strategic plan of the Municipality as well as the IDP.

6.6 Provincial Department: The Provincial Department reported that Municipal Manager was dismissed in January 2009. Since then there were labour unrests due to salary adjustment and differences between employer and workers (SAMWU workers embarked on a strike since May 2009 till August 2009). In addition, the IDP processes not properly executed as well as the organizational policies of Municipality were not implemented e.g. the appointment of personnel.

6.7 Organized Labour: The organized labour, as led by the South African Municipal Workers Union (SAMWU) submitted to the Committee Delegation that corruption has led to the invoking of section 139 (1)(b) of the Constitution. Since the provisions have been invoked in the Municipality, proper administrative systems should be put in place. SAMWU identified that there was no clear and decisive political leadership in the Municipality, as a result, many Council resolutions were unlawful. That Management did subsequently advise the Municipal Council on those resolutions, however the Municipal Council implemented them irrespectively. That therefore, the intervention process should be extended since there was much work that needs to be addressed and cohesion amongst stakeholders within the municipality still existed.

6.8 SALGA: The provincial SALGA official, Advocate Yawa, reported to the Committee Delegation that he assisted the Municipality during the confusion by clarifying the roles and responsibilities of the appointed Administrator, as well as the implication thereof during the intervention process. (B). Basic Service delivery

6.9 Municipal Council: The key service delivery challenges highlighted in the Mayoral Committee report related to water shortages and reliance on underground supply of water and the lack of water to be provided to the community.

6.10 Administrator: The Administrator’s report indicated that water and sanitation provisions in all local municipalities under the district (Ditsobotla, Ramotshere Moila, Ratlou and Tswaing) were being investigated and assisted on budget, planning as well as on maintenance issues.

6.11 Provincial Department: Reported that there were huge water and sanitation backlogs in the District, that there were also community protests over water provision in Dinokana and acute water shortages in Tswaing and Ditsobotla. Furthermore, there were also services delivery disruptions due to the strike action by SAMWU workers, e.g. water tankering and servicing of septic tanks in rural areas.

6.12 Community Forums and Organised Labour: Some of the service delivery concerns raised by the members of the community forums and representatives from organised labour related to lack of water provision; lack of roads construction projects; lack of refuse dumping sites; inaccessible roads and general lack of youth facilities.

(C). Local Economic Development (LED)

6.13 Administrator: There were challenges with regard to the local economic development in the Municipality, this was observed through the haphazard implementation of LED projects. The Administrator has since stopped all new LED projects and investigated and evaluated existing projects. This exercise involved local municipalities; the national Department of Rural Development and the Department of Agriculture and Fisheries to try and salvage LED projects.

6.14 Community Forums: The concerns raised by the stakeholders pertained to lack of business opportunities, lack of job opportunities, lack of access to land, lack of equity in the awarding of municipal tenders, and lack of economic financial support to small businesses in the Municipality.

(D). Municipal Financial Viability and Management

6.15 Municipal Council: The Municipal Council submitted to the Committee Delegation that there were illegal virements done by the Finance Department, non–adherence to supply chain management regulations; wasteful expenditure on projects (Brazil Soccer Academy, Belgium trip and goat and cattle projects); the Municipal oversight Portfolio Committee on Finance failed to provide financial oversight; the municipal budget was not aligned with Integrated Development Plan (IDP); withdrawal of Municipal Infrastructure Grant (MIG) by the national Department of Co-operative Governance and Traditional Affairs as well as the failure to provide allowances to the traditional leaders during Council sitting. Despite the above-stated challenges, the Municipal Council appreciated the support from the Development Bank of Southern Africa (DBSA) with regards to financial management, as well as the interns provided by the provincial Department of Local Government and Housing.

6.16 Administrator: Reported on possible fraud related to endowment policies; no adherence to supply chain management regulation; payment of creditors as well as reporting as per regulations on finances of Council. Since then, the Municipality has now developed an investment register and investment policy. The Supply Chain Manager has been suspended and all municipal purchases have since been audited. The DBSA was currently assisting the Municipality in developing a reporting system, and Gobodo Auditors were reconciling the previous years’ balances.

6.17 Provincial Department: The Provincial Department reported that the status of the Municipality prior to the intervention reflected procurement processes in terms of the requirement of the MFMA not being adhered to; financial management practices of the Municipality were not sound and lastly, the service delivery grants were used for other purposes (Disaster Management Grant was part of it).

(E). Good Governance and Public Participation

6.18 Municipal Council: Despite the allegations of political interference in the administration and high political contestation in the municipality, the report of the Mayoral Committee highlighted progress in respect of public participation, convening of regular public meetings.

6.19 Provincial Department: On good governance, the Provincial Department reported that prior to the intervention, Municipal Council meetings were not properly convened; the relations amongst the Municipal Councillors were not sound and lastly, the Municipal Council prioritized non-core functions over basic service delivery. 6.20 Community Forums: Some of the good governance and public participation concerns raised by the members of the community forum and organized labour included lack of transparency in municipal decision making processes, failure by the municipality to facilitate public participation in 2009/2010 Integrated Development Planning.

6.21 Traditional Leaders: The concerns raised by the traditional leaders in respect of good governance related to lack of communication and proper consultation by the Municipality on matters related to service delivery.

1. Committee Observations and Opinion

2. The Committee Delegation expressed the opinion that the While Paper on Local Government identified performance management as one of local government’s tools for the implementation of its developmental mandate in terms of the Constitution. Chapter 6 of the Local Government: Municipal Systems Act (Act No. 32 of 2000) provides the legal framework for performance management and linked it squarely with the IDP. The Committee Delegation further expressed that the drafting of the Municipal IDP should provide appropriate mechanisms; processes and procedures; for consultation with and participation of local communities, organs of state, traditional authorities and other stakeholders.

7.2 The Committee Delegation is of the opinion that there is a need to pay greater attention on service delivery issues, and the Municipality must be responsive and address the problems raised by the community with the necessary speed. The Municipality should treat every service delivery problem with the necessary seriousness it deserves. That all stakeholders in the municipal jurisdiction must assist the transformation process, within the framework of co-operative government work.

7.3 The Committee Delegation emphasized that one of the objects of local government in terms of section 152 (1)(e) of the Constitution was the need to encourage the involvement of communities and community organizations in local government. The Committee further expressed that the need for participation in the Municipality should take place through the structures (ward committee) established in terms of the Municipal Structures Act (Act No. 117 of 1998). It must also take place through mechanisms, processes and procedures that exist in terms of the Systems Act (Act No. 32 of 2000) that have been established by the Municipal Council (section 17).

1. Acknowledgement

2. The Committee Delegation acknowledged the varied contributions of the parliamentary staff who participated in the oversight visit in their various capacities.

3. Recommendations

9.1 Having conducted the oversight visit to Ngaka Modiri Molema District Municipality and interacted with internal and external stakeholders, the Select Committee on Co-operative Governance and Traditional Affairs recommends as follows:

  9.1.1 National Council  of  Provinces  approves  the  intervention  as
       issued by the Provincial Executive  Council  of  the  North-West
       Province in terms of section 139 (1)(b) of the Constitution.


  9.1.2  That   National   Council   of   Provinces   further   approves
       recommendations to the Provincial Executive Council of the North-
       West Province to extend the intervention period by three months,
       in order to ensure that during the extended intervention period,
       minimum standards of service delivery will be  achieved  in  the
       Municipality.



  9.1.3 The Administrator should fast-tract the  process  of  appointing
       and filling of  section  57  Managers  and  further  assist  the
       Municipality to ensure that  the  Service  Delivery  and  Budget
       Implementation Plan (SDBIP) and the IDP  are  aligned  with  the
       Municipality budget, and has the support and confidence  of  the
       whole community.

  9.1.4 The  North-West  MEC  for  Developmental  Local  Government  and
       Housing to table  quarterly  progress  report  to  the  National
       Council of Provinces on the status of the  intervention  in  the
       Municipality; including challenges encountered.

  9.1.5 The South African Local Government Association  (SALGA)  in  co-
       operation with Local Government Sector  Education  and  Training
       Authority to  facilitate  training  and  capacity  building  for
       Municipal Councillors; to further deepen their understanding  of
       their oversight role; legal framework and policies  that  govern
       the activities of the Municipality.

  9.1.6 The Select Committee on Co-operative Governance and  Traditional
       Affairs in co-operation with the relevant  North-West  Portfolio
       Committee in the Provincial Legislature, to conduct a  follow-up
       oversight visit to the Municipality  in  order  to  monitor  and
       evaluate progress made in respect of  the  intervention  in  the
       Municipality.

Report to be considered.

1. REPORT OF THE SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON THE OVERSIGHT VISIT TO MKHONDO LOCAL MUNICIPALITY, DATED 17 NOVEMBER 2009

2. Background and Overview

1.1 The Select Committee on Co-operative Governance and Traditional Affairs, having considered the request by the National Council of Provinces (NCOP) to consider and report on the intervention notice invoked in Mkhondo Local Municipality in terms of section 139 (1)(b) of the Constitution, the Committee report as follows:

1.2 In terms of section 139(1)(b), when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfilment of that obligation, including assuming responsibility for the relevant obligation in that municipality.

1.3 In terms of NCOP rule 101, the Office of the Chairperson of the NCOP referred the notice of intervention by the Mpumalanga MEC for Co- operative Governance and Traditional Affairs in the affairs of Mkhondo Local Municipality, to the Committee for consideration and reporting. On 3 November 2009, the Committee then took a decision during the proceedings of its meeting to conduct an oversight intervention visit to the Municipality during 12 November 2009.

1. Objective of the Oversight Visit

2.1 The main objectives of the oversight visit were to determine whether procedural requirements have been met and also to verify whether the provincial executive has used its discretion appropriately before the Committee can approve/disapprove the intervention. Through the deliberations and interaction with internal and external stakeholders, the Committee wanted to determine how the provincial executive intends to restore the fulfilment of the relevant obligations and ensure fulfilment in the long-term. The aim being to ensure intergovernmental checks and balances aimed at guarding the integrity and efficiency of the intervention process.

1. Composition of the Delegation

3.1 The Committee Delegation composed of the following Members of Parliament and officials: Hon MH Mokgobi, Limpopo (ANC); Hon AG Matila, Gauteng (ANC); Hon JM Bekker, Western Cape (DA); Mr TM Manele, Committee Secretary (Committee Section); Mr N Mfuku, Content Adviser (Committee Section); Mr L Ngqameni, Intern (Committee Section) and Mr D Mokoena, Committee Researcher (Research Unit).

1. Introduction

4.1 On 01 July 2009 the Provincial Executive Council (PEC) in Mpumalanga resolved to invoked section 139 (1)(b) of the Constitution in Mkhondo Local Municipality. Subsequently the Office of the Chairperson of the NCOP was informed of the PEC’s decision to intervene in the affairs of the Municipality, by the MEC for Co-operative Governance and Traditional Affairs in Mpumalanga.

1. Problems Identified at the Municipality by the PEC

5.1 The key problems which led the PEC to invoke the provisions of section 139(1)(b) of the Constitution and assuming the executive responsibilities at Mkhondo Local Municipality relates to systemic problems, whereby, the Municipality as a whole has failed to effectively deliver on its constitutional mandate. There was no alignment and integration of the IDP (Integrated Development Plan) and SDBIP (Service Delivery and Budget Implementation Plan) within the municipal system. The IDP and its related SDBIP appeared to exist outside of the normal functioning of the system and were not adhered for compliance, and not used as a management tool. The performance management measures were largely activity centred, and not linked to the actual delivery of services.

5.2 Furthermore, monitoring and evaluation was not integrated throughout the Municipality. The service delivery system problems often resulted in duplication and wasted effort, contributing to the difficulties in coordination and management of large scale interdepartmental programmes and projects. This exacerbated the silo approach to delivery and the limited flexibility, innovation and optimisation of resources, especially in the areas of effective human resources deployment and overheads minimisation. This in turn resulted in serious challenges around issues such as poor service delivery, loss of governance control, poor management, anomalies in supply chain management, corruption and internal squabble that undermined effective service delivery.

5.3 The MEC of Co-operative Governance and Traditional Affairs appointed Mr Misabeni Khosa as an Administrator at Mkhondo Local Municipality, to assume responsibility of the day-to-day operations and the maintenance of essential service delivery standards. In addition, to plan and roll-out a structured turn-around strategy that will create sustainable improvement of the ongoing management of the Municipality. It was envisaged that the above process will take a minimum period of six months full-time involvement of the Administrator and his team, before they commence withdrawal. The work of the Administrator commenced on 1 August 2009 and is anticipated to end on January 2010.

1. Oversight Visit at Mkhondo Local Municipality

6.1 On the 12 November 2009, the Delegation of the Committee had interactive and robust engagements with the internal and external stakeholder of the Mkhondo Local Municipality. The main internal stakeholders the Delegation interacted with in the Municipality included the Speaker, Mayor, Chief Whip, Ward Committee Members and Councillors and the Administrator. The main external stakeholders the delegation interacted included members of the community forums and non- governmental organization.

6.2 For the purpose of this report, the submissions made by both internal and external stakeholders are structured based on the five key performance areas of local government which are: Municipal Transformation; Basic Service Delivery; Local Economic Development; Municipal Financial Viability and Management as well as Good Governance and Public Participation. (A). Municipal Transformation and Organisational Development

6.3 Municipal Council: The submissions made by the Speaker and Mayor indicated and reflected that the Municipality welcomed and acknowledged the intervention in its affairs by the PEC of the Mpumalanga Province. Some of the transformation and organisational developmental challenges highlighted lack of human resource capacity; challenges on the recruitment of skilled personnel to enhance service delivery; high vacancy rate in key positions and lack of labour retention strategy. Some of the internal developments since the deployment of staff from Provincial Department of Co-operative Governance and Traditional Affairs highlighted, included the auditing of all existing municipal policies and evaluation of their relevance. This process entailed the development of new rules of order, registry of delegation and legal compliance. The Municipal Council reported to the Committee that the intervention process has synergised communication linkages between the community and the Municipal Council.

6.4 Administrator: Some of the organisational development challenges indicated in the report pertained to the lack of human resource capacity; fragmented and inadequate fleet management policy; resignation of the Chief Financial Officer (CFO) and Town Planner; filling of critical positions of section 57 Managers and lack of approved human resource development policies. A total number of 14 officials have been suspended and were currently undergoing disciplinary hearings.

1. Despite all the challenges indicated, the Administrator reported to the Committee that progress has been made in respect of developing 28 organizational policies which are aimed at strengthening and improving the technical ability of the organization. The organizational structure has been redesigned to fulfill public participation mandate and legislative roles of Councilors, furthermore, those disciplinary hearings on suspended officials will be finalized in December 2009. Since the clinic was burned down in the township, two mobile clinics have been put in place to ensure health services are rendered to the community.

(B). Basic Service delivery

6.6 Municipal Council: The key service delivery challenges highlighted in the Mayoral Committee report related to huge infrastructure backlogs (ageing infrastructure, repairs, maintenance and rehabilitation); withdrawal of the Development Bank of South Africa (DBSA) technical support (Engineers and Young Professionals); lack of proper and effective service delivery including service delivery projects such as the main water pipeline on the Wakkerstroom road; housing development in Eziphunzini; bus and taxi route in Thandukukhanya and streets rehabilitation not completed on time. Despite these challenges, the Mayoral Committee reported that the intervention on July 2009 has taught the Municipal Council the importance of consolidating the powers and responsibilities of the Mayor and Municipal Manager in order to ensure implementation of decisions and political oversight on service delivery matters.

6.7 Administrator: Some of the service delivery challenges highlighted in the report of the administrator related to lack of planning on service delivery projects across all the 15 wards of the municipality, lack of efficient and effective monitoring and evaluation systems and mechanisms, lack of funding for critical infrastructure projects, projects were implemented and did not form part of the IDP and community participation processes.

6.8 The Administrator reported to the Committee that progress has been registered in some areas in speeding up service delivery. A number of emergency water supply projects have been initiated in partnership with a company called Mondi including the erection of JoJo tanks; supply of Lister Pumps and purifying systems; repair of boreholes; connection of pipelines and taps; supply of bulk drinking water reaching communities of Witkop Mission Village; Iswepe Villages of Jabulani; Spring Valley; The Bends and New Compound. Mondi has kindly committed R750, 000 to this initiative.

6.9 The Municipality is partnering with the National Minister of Rural Development and Land Reform to launch a pilot project in Donkerhoek and neighbouring farms, KwaNgema and Madlangempsi. This will supplement the Municipalities own sustainable rural development programme. In addition, the Municipality in conjunction with various government departments has embarked on the above programme and is in the process of establishing a Local Poverty War Room. A door-to-door programme has been actioned for profiling household’s needs in order to ensure that the poorest household members are captured on a database, in order to provide shared intervention for co-ordinated assistance across departments (Ward 2, 6 and 8 are the priority wards in the initial phase).

6.10 In addition, a project on electricity has been commissioned in line with the supply chain management policy; fencing of schools in accordance to rural development programme; assistance in the implementation of rural development programme has been provide; engagement with the Department of Energy on universal access in order to ensure implementation and community benefits of electricity project has been secured; financial estimation of possible service delivery projects has been designed and engagement with the Department of Co- operative Governance on the Municipal Infrastructure Grants (MIG) are underway on matters related to service delivery.

6.11 Ward Committees: Although there was much dissatisfaction on the snail pace of service delivery in the municipal jurisdiction, however, there was acknowledgment on the continuation of the electricity project especially in Ward 15.

(C). Local Economic Development

6.12 Members of Community Forums: The concerns raised by the stakeholders pertained to lack of business opportunities; lack of job opportunities; lack of access to land; lack of equity in the awarding of municipal tenders; and lack of economic financial support to small businesses and non-functionality of the Local Economic Development Unit in the Municipality.

6.13 Administrator: The Administrator reported that the Municipality has now partnered with Mondi in the training of at least 600 youth, unemployed and women across all communities in the municipal area in woodwork, carpentry, welding and painting. The Mkhondo Local Municipality is providing assistance on the Premier’s 2010 programme aimed at benefitting 300 children and an additional 200 volunteers to mark the 300 day countdown to the launch of the 2010 FIFA World Cup. The Mkhondo Municipality is also partnering with the Provincial Departments of Roads and Public Works to devise projects in the “Decent Work Programme”, which will facilitate the prioritisation of “decent work” for residents of Mkhondo. In addition, the potential establishment of a Development Agency is being reviewed in order to provide an appropriate vehicle to manage the commercial activities of the Municipality, especially the 3,000 hectares of forestry land.

(D). Municipal Financial Viability and Management

6.14 Municipal Council: The report presented by the Mayoral Committee indicated that in terms of rural development, the municipality is faced with the challenges of supplying new areas and households with municipal services, and reliance on equitable share and conditional grants. Despite these challenges, the Mayoral Committee expressed appreciation of the assistance provided by the district, some Provincial and National Government Departments on provision of boreholes, toilets, access roads, schools and clinics in the community.

6.15 Administrator: A number of activities are taking place on a continuous basis to “clean up” on anomalies in the short term. Some of the key activities include the use of municipal credit cards has been stopped to avoid the continuance of abuse. A number of anomalies have been identified such as the contract of R14, 7 million rand for a roads project where only a letter of appointment can be found and no formal contract. The entire municipal supply chain management is under review and anomalies addressed appropriately. Some of the anomalies are under formal investigation by the investigators.

6.16 The Administrator further reported that the 2008/2009 financial year budget has not yet been closed due to a number of anomalies discovered, including the fact that bank reconciliations have not been properly completed since 2006, clearing of audit queries and stock adjustment queries. This issue was receiving priority attention. The Administrator will shortly be engaging a debt collection agency to collect and reduce the current outstanding debt of R69 million. The costs of this are self funding since the agencies fees are funded from a percentage of the debt that they will recover. Lastly, the Administrator has signed a letter of engagement with the Auditor- General to address audit queries of the Municipality.

(E). Good Governance and Public Participation

6.17 Municipal Council: Despite lack of regular communication feed back to the community and stakeholders, the report of the Mayoral Committee acknowledged that the intervention has revealed the importance of communication with the public.

6.18 Administrator: Some of the major progress reported by the Administrator in respect of good governance and public participation included clarification of the roles to the internal and external stakeholders; clarification of the roles and responsibilities of the Mayoral Committee and the office bearers; scheduling of the Council meetings; improving communication system and co-ordinating the meeting of Ward Committees and ensuring the consideration and approval of the IDP process plan by the Council. Furthermore, the Administrator has had several meetings with the members of the Community Concerned Group to update them on a weekly basis on the affairs of the Municipality.

1. Committee Observations and Opinion

2. The Committee Delegation expressed the opinion that there is a need to pay greater attention on service delivery issues, and the Municipality must be responsive and address the problems raised by the community with the necessary speed. The Municipality should treat every service delivery problem with the necessary seriousness it deserves. That all stakeholders in the municipal jurisdiction must assist the transformation process, within the framework of co-operative government.

3. The Committee Delegation emphasized that one of the objects of local government in terms of section 152 (1)(e) of the Constitution was the need to encourage the involvement of communities and community organizations in local government. The Committee further expressed that the need for participation in the Municipality should take place through the structures (ward committee) established in terms of the Municipal Structures Act (Act No. 117 of 1998). It must also take place through mechanisms, processes and procedures that exist in terms of the Systems Act (Act No. 32 of 2000) that have been established by the Municipal Council (section 17).

4. Acknowledgement

5. The Committee Delegation acknowledged the varied contributions of the parliamentary staff who participated in the oversight visit in their various capacities.

6. Recommendations

9.1 Having conducted the oversight visit to Mkhondo Local Municipality and interacted with internal and external stakeholders, the Select Committee on Co-operative Governance and Traditional Affairs recommends as follows:

  9.1.1 National Council  of  Provinces  approves  the  intervention  as
       issued  by  the  Provincial  Executive  Council  of   Mpumalanga
       Province in terms of section 139 (1)(b) of the Constitution.


  9.1.2  That   National   Council   of   Provinces   further   approves
       recommendations  to  the   Provincial   Executive   Council   of
       Mpumalanga Province to extend the  intervention  period  by  six
       months, in order to ensure that during the extended intervention
       period, minimum standards of service delivery will  be  achieved
       in the Municipality.

  9.1.3 The Administrator should fast-tract the  process  of  appointing
       and filling of  section  57  Managers  and  further  assist  the
       Municipality to ensure that the SDBIP and the  IDP  are  aligned
       with the Municipality budget, and has the support and confidence
       of the whole community.

  9.1.4 The MEC for Co-operative Governance and Traditional  Affairs  in
       Mpumalanga to table quarterly progress report  to  the  National
       Council of Provinces on the status of the  intervention  in  the
       Municipality; including challenges encountered.

  9.1.5 The South African Local Government Association  (SALGA)  in  co-
       operation with Local Government Sector  Education  and  Training
       Authority to  facilitate  training  and  capacity  building  for
       Municipal Councillors; to further deepen their understanding  of
       their oversight role; legal framework and policies  that  govern
       the activities of the Municipality.

  9.1.6 The Select Committee on Co-operative Governance and  Traditional
       Affairs in co-operation with the relevant Portfolio Committee in
       Mpumalanga  Provincial  Legislature,  to  conduct  a   follow-up
       oversight visit to the Municipality  in  order  to  monitor  and
       evaluate progress made in respect of  the  intervention  in  the
       Municipality.

Report to be considered.

1. Report of the Select Committee on Security and Constitutional Development on the Provisional Suspension from Office of Magistrate N E Ndamase, dated 17 November 2009:

Introduction

The Select Committee on Security and Constitutional Development, having considered the report on the provisional suspension from office of Magistrate N E Ndamase, an additional magistrate at Pretoria, pending the outcome of an investigation into her fitness to hold office as a magistrate, as required in terms of section 13(3)(a) of the Magistrates Act, 1993 (Act no 90 of 1993), reports as follows:

Background

1. The Select Committee notes from the report tabled by the Minister for Justice and Constitutional Development that the Magistrates Commission resolved on 29 and 30 July to recommend that Ms NE Ndamase be provisionally suspended from office in terms of section 13(3)(a) of the Magistrates Act, 1993.

2. On 09 October 2009, the Magistrates Commission briefed the Select Committee on the contents of the report: The Commission decided to charge Ms Ndamase with misconduct in terms of Regulation 26(1) of the Regulations for Judicial Officers in Lower Courts, 1994. It is of the opinion that there is enough prima facie evidence to support the charge(s). There is an ongoing process to obtain further evidence. On 29 and 30 July 2009, the Commission resolved to recommend that Ms Ndamase be provisionally suspended, pending the outcome of the misconduct inquiry. The report and supporting documents give reasons for this recommendation.

3. In terms of section 13(3)(c) of the Magistrates Act, 1993, Parliament must, as soon as is reasonably possible, pass a resolution as to whether or not the provisional suspension of a magistrate is confirmed.

4. The Select Committee is of the view that the issues raised by this matter are complex, pointing to problems of transformation within the judicial system. It is not helpful to look solely at an individual’s conduct, while ignoring the broader context. Of particular concern to the Select Committee is the ‘gatekeeping’ role that language proficiency plays within the justice system, and the frustration this engenders. The Select Committee is aware that there are no ‘quickfix’ solutions but believes that much needs to be done, and urgently, to address this problem.

5. As part of its oversight function, the Select Committee intends to embark on regular visits to our courts to gain insight into the problems they grapple with daily. In the first quarter of 2010 the Select Committee will arrange to visit the Pretoria Magistrates Court.

6. The Select Committee also intends to engage more closely with the Magistrates Commission to better understand its role, as well as the systemic challenges facing our judicial system and possible solutions to these. It would be particularly interested in the Commission’s views on whether it has a mediatory or conciliatory role in matters such as these. It urges the Commission to explore this possibility in this particular matter.

Recommendation

1. Having considered the Commission’s report on the provisional suspension, the Select Committee recommends that the Council does not confirm the provisional suspension of Magistrate NE Ndamase.

Report to be considered.

1. Report of the Select Committee on Security and Constitutional Development on the Draft Notice and Schedule submitted in terms of section 2(4) of the Judges Remuneration and Conditions of Employment Act, 2001 (Act No 47 of 2001), determining the rate at which salaries are payable to Constitutional Court judges and judges annually, dated 17 November 2009

The Select Committee on Security and Constitutional Development, having considered the Draft Notice and Schedule submitted in terms of section 2(4) of the Judges Remuneration and Conditions of Employment Act, 2001 (Act No 47 of 2001), determining the rate at which salaries are payable to Constitutional Court judges and judges annually with effect from 1 April 2009, referred to it, recommends that the Council approve the said Draft Notice and Schedule.

Report to be considered.

1. Report of the Select Committee on Security and Constitutional Development on the Draft Notice and Schedule in terms of section 12(3) of the Magistrates Act, 1993 (Act No 90 of 1993), determining the rate at which salaries are payable to magistrates annually, dated 17 November 2009:

The Select Committee on Security and Constitutional Development, having considered the Draft Notice and Schedule in terms of section 12(3) of the Magistrates Act, 1993 (Act No 90 of 1993), determining the rate at which salaries are payable to magistrates annually with effect from 1 April 2009, referred to it, recommends that the Council approve the said Draft Notice and Schedule.

Report to be considered.

1. Report of the Select Committee on Security and Constitutional Development on the Repeal of the Black Administration Act and Amendment of Certain Laws Amendment Bill, dated 17 November 2009:

The Select Committee on Security and Constitutional Development, having considered the Repeal of the Black Administration Act and Amendment of Certain Laws Amendment Bill [B15-2009] (National Assembly – sec 75), referred to it, reports that it has agreed to the Bill without amendments.

Report to be considered.