WEDNESDAY, 05 MAY 2010 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at 14:01.

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.

                        NO NOTICES OF MOTION

The CHAIRPERSON OF THE NCOP: Hon members, I’ve been informed that the Whippery has agreed that there will be no notices of motion today.

                         APPROPRIATION BILL


                           (Policy debate)

Vote No 34 – Trade and Industry:

Vote No 35 – Tourism: The MINISTER OF TRADE AND INDUSTRY: Chairperson, members of the executive council of provinces, members of the NCOP, hon members of other Houses that may be here, ladies and gentlemen, in addressing this House on previous occasions, we have consistently argued that preserving and enhancing South Africa’s industrial capacity is intertwined with the challenge of promoting a broader and more equitable distribution of economic activity throughout the country.

The impact of the recent global economic crisis and recession on the patterns of economic development in our country has reinforced our view. Strong economic forces continue to underpin the tendency to concentrate on economic activity in established urban areas whilst simultaneously excluding from economic opportunities people who reside outside these areas. As we previously reported to the House, industrial development has enormous potential to generate decent work, including through overcoming regional disparities in economic development.

The Industrial Policy Action Plan, now commonly referred to as Ipap 2, is a three-year rolling Industrial Policy Action Plan for the Medium-Term Expenditure Framework, MTEF, period commencing in the 2010-11 financial year and ending in the 2012-13 financial year. It is designed to expand our industrial base in critical sectors of production and value-added activity with the bias towards those that are more labour absorbing.

The analysis underpinning Ipap 2 starts by recognising that we need to place our economy on a new and different growth path. There are critical imbalances which became evident during the recession and even before. The most important of these is that when we grew – before the recession – consumption-driven sectors led by credit finance grew at about twice the rate of production sectors.

The Ipap 2 then identified a series of crosscutting as well as sectoral interventions. The most important crosscutting interventions are those which require drastic changes in our procurement regime as well as in the manner in which we are engaging in industrial financing. The Ipap 2 is a product of collaborative and collective work by the economic and employment clusters in Cabinet. Although the Department of Trade and Industry stands at the centre of much of industrial policy and practice, Ipap’s success is critically dependent on bringing about greater coherence and mutual support between ourselves and other government departments and agencies.

Hon members, we are well aware that achieving success will be an enormous challenge. We believe that, were it not for our intervention in several areas of the economy, we may, in fact, face a greater danger of de- industrialisation than is now the case. Our support programmes for the motor industry, for example, have been one recent success. The recent investment commitments by Volkwagen South Africa, BMW South Africa, and the Ford Motor Company of South Africa bring in an investment of about R9 billion between 2009 and 2013; and we support at least 3 500 direct jobs in vehicle assembly. These investments will in turn catalyse an estimated R4 billion of the investment by component manufacturers, sustaining the further 20 000 jobs during the same period. These investments were all supported by the work we did on the Automotive Investment Scheme.

In assessing the previous Motor Industry Development Programme, the extent of the auto component sector’s significant multiplier impact through strong backward linkages to other sectors of the economy, as well as its potential to make a significant contribution to create decent work, became more apparent. Our new programme will extend existing benefits previously only available to light vehicle manufacturers and first to their suppliers through the Productive Asset Allowance of the Motor Industry Development Programme to all firms in the automotive component sector.

A second example of successful intervention is the government assistance programme introduced in 2008, which has put South Africa on the global map as a supplier of business process services. A total of 6 000 jobs have already been created in the past two and a half years. The challenge, now, is to attract new investments in the context of increasing competition for investment in this sector. We will, this year, be embarking on a review of our strategy to ensure that it is responsive to new realities in the sector.

Further progress can be reported in respect of the Enterprise Investment Programme, amongst others. A total of 290 projects investing R6,1 billion and creating 11 336 jobs have received approval for Manufacturing Investment Programme grant funding, in the past year. More than 60% of the approved companies are in sectors prioritised in our first Industrial Policy Action Plan, namely capital equipment, automotives, chemicals, plastics, pharmaceuticals, forestry, and furniture. A total of 68% of these approved projects have already started production. The Tourism Support Programme which is the other subcomponent of the Enterprise Investment Programme, EIP, has granted approval to 164 projects with a projected investment of R2,3 billion, creating approximately 5 000 jobs.

A third example of successful support for development is through the Black Business Supplier Development Programme, BBSDP, which assists and prepares black entrepreneurs to take up business opportunities by providing training and access to productivity and competitiveness-enhancing knowledge services. During the past year, more than 4 000 enterprises across all provinces received technical and standards training, productivity-enhancing computer software, and marketing and promotional materials. New guidelines will come into effect in the second quarter of this financial year, extending the scope of this assistance. This will include a partial grant for productivity-enhancing technology, acquisition of tools, equipment and machinery for enterprises that have strong potential for further growth and integration into the formal industrial supply chains.

In the context of these evidence-based achievements, we are convinced that we need to move swiftly forward with the work which we have identified in Ipap 2. We are, now, as I have been saying, firmly in implementation mode. This Ipap 2 kicked off at the beginning of the financial year on 1 April and all the quarters which we have identified started on that date.

Hon members, I had an opportunity to speak on matters of trade policy in the National Assembly yesterday. I don’t want to repeat the points in detail here. I do, however, welcome the continued keen active interest of the National Council of Provinces in international trade matters and we look forward to continue to work with and to brief you further on many of the important matters. We obviously indicated, yesterday and in the past hour, that the Trade Policy Paper underwent a number of processes and it’s close to being finalised. We indicated that there are some very important developments taking place in the Southern African region, particularly with a forthcoming summit of heads of state and governments of the Southern African Customs Union to debate and discuss a way forward to turn SACU from a mere arrangement of convenience built around the revenue-sharing formula into a real instrument for developmental integration.

We have indicated that we will pursue the work to enhance and develop the free trade area which came into force in the Southern African Development Community, SADC, in 2008; and we are also genuinely committed to extending African integration through pursuing the Trilateral SADC-East African Community-Common Market for Eastern and Southern Africa, Comesa, free trade arrangements and when they come into force, we’ll put in place a free trade area quite literally from Cape to Cairo in an area of 700 billion people.

We pointed out some important developments which will be taking place in our relations with countries of the global South; the Southern African Customs Union, SACU-Mercosur Preferential Trade Agreement is now before Parliament for ratification. We are working energetically on trade negotiations with India and when those processes are complete we have committees to work on the trilateral arrangement between Mercosur, India and SACU. We’ve indicated that we do not see much prospect of the World Trade Organisation, WTO, completing, this year, very important issues that are at stake there, but our commitment is to continue to engage with parliamentarians on all of these matters.

Hon members, industrial policy requires a supportive regulatory environment to support business and protect consumers. In 2008, the Department of Trade and Industry piloted three major pieces of legislation through Parliament which were assented to by the President last year; and two of them are intended to come into force in October this year. The new legislation in question will impact on all our citizens.

Firstly, there is the new Companies Act. This simplifies business registration, reduces unnecessary onerous financial reporting burdens on small, medium and micro enterprises, SMMEs, and provides new protection against unscrupulous practices for businesses in financial distress. We believe that this is a major piece of policy reform and, in fact, we are embarking on road shows around the country right now to alert businesses about the importance of this legislation.

Secondly, the new Consumer Protection Act provides, for the first time, safeguards for consumers through compulsory product description and labelling, product safety regulations, product choice and information disclosure. In addition to these two, the implementation of the Competition Amendment Act – which has now passed into the custody of the Department of Economic Development - will allow sector-wide and general market inquiries to be conducted to deal with uncompetitive outcomes and restraints on competition in key sectors of our economy.

To implement these new pieces of legislation, the necessary regulatory processes will be finalised this year. Given that the new laws will impact on all our citizens in all our provinces, we are beginning – as I said – to initiate and undertake widespread education and awareness campaigns, not only on the Companies Act, but also on the Consumer Protection Act and on the competition legislation. With regard to the Fifa 2010 World Cup, we have published for comment the Fifa Ticketing Regulations. These regulations seek to ensure that the granting of temporary licences provides opportunities for small, medium and micro enterprises from previously disadvantaged communities.

I thank all the MECs and provincial legal authorities for their co- operation in developing the 2010 liquor policy and regulations. While we have been concentrating on developing new regulations, we are, at the same time, engaged in undertaking an impact assessment and comprehensive review of the gambling industry and legislation pertaining to this.

In consultation with colleagues at provincial level, we have established a Gambling Review Commission to assess the extent of gambling activities and their socioeconomic impact. The commission has conducted public hearings and will produce a report which we intend tabling in Parliament in the second half of this year.

Chairperson, enterprise development remains a key objective. We continue to learn as we implement. Based on this learning, part of our response to improve support for SMME’s is based on the one-stop-shop framework. This framework provides for the collocation of SMME’s support services through the relevant agencies at both national and provincial government level. The Small Enterprise Development Agency, Seda, is engaging with both provincial and municipal structures not only to collocate, but to cofund the delivery of some of the products and services within the Seda branches.

In addition to this, we continue with the implementation of our broad-based black economic empowerment, BBBEE, initiatives. Following the closure of the public commentary period, a team of the DTI and National Treasury is now working on aligning the Preferential Procurement Policy Framework Act, PPPFA, with the BBBEE Act. One of the aims of this alignment is to strengthen industrial development in support of the new growth path in our economy. We will further strengthen the broad-based black economic empowerment legislation by creating a punitive dispensation to prevent circumvention of broad-based black economic empowerment while developing incentives to promote greater compliance with BBBEE policy.

The launch of the BBBEE Advisory Council earlier this year signifies an important milestone. This is so because one of the key functions of the council will be to monitor the implementation of broad-based black economic empowerment by all organs of state, public entities, government departments, sector charter councils, and the general public at large. Aspects of the Act that require immediate attention include dealing with fronting, the policy implementation framework, regulation of the verification process and refinement of the codes; work is proceeding on all these matters.

In the area of co-operatives development, in consultation with the National Economic, Development and Labour Council, Nedlac, we are finalising the Co- operatives Development Strategy and a Co-operatives Amendment Bill. My colleague, Deputy Minister Ntuli, will spell out some of the key issues later in the debate.

Hon members, with regard to regional economic development, our efforts have not always yielded the requisite results. However, as I indicated earlier, we believe that industrial development is a key component for addressing unbalanced regional development. Going forward, our policy focus will be on financial and institutional support as well as specific measures to support and develop small-scale industries through the promotion of regional industrial clusters. Our regional industrial clusters programme will have the following features: firstly, the use of an industrial cluster approach to unlock economic development in underdeveloped areas.

Secondly, there will be identification of economic regions agglomerating a number of municipalities within and across provinces, and implementing of the targeted economic development strategies for each economic region.

Thirdly, there will be concentration and co-ordination of various support measures within the DTI with support programmes from other governments, state-owned enterprises and the private sector organisations to support enterprises within an identified cluster.

Fourthly, there will be provision of a wide range of business development support services to enterprises within supported clusters.

In addition to all of these, we intend to work energetically with the other spheres of government to support local economic development.

Chairperson, as part of these efforts to broaden participation in economic activity, the DTI is also increasing support for entrepreneurial development. We have begun doing so by undertaking innovative, collaborative and strategic partnerships with institutions of higher learning. We have also set targets for skills development to produce additional engineers, technicians, and other skilled people to increase the number of qualified people in a variety of areas.

The advancement of women’s economic empowerment cannot simply be a platitude. We have, therefore, integrated gender equity measures into our programmes to facilitate the participation of women in the economy and to enhance their contribution to the overall objective of empowerment. Further initiatives for this year include seeking Cabinet approval for strengthening the SA Women Entrepreneurs’ Network as an Apex body for women sectoral organisations. This work has been spearheaded by Deputy Minister Ntuli. We will also be approaching the Cabinet with a strategy on gender and women economic empowerment outlining integrated solutions that include directly tackling barriers that prevent women’s economic emancipation.

In addition, given the higher than average rate of unemployment that our youth is facing, interventions will seek to increase the participation of youth in the economy and create jobs for young people. We will be submitting the Youth Development Strategy to Cabinet for approval during this financial year.

Finally, to deliver on our mandate, the DTI has to be a high-performing organisation. Beginning with the new Human Resource Strategy, we are well on the road to developing a professional programme for economists, specialising in industrial policy and sector work. All in all, greater support will be provided for our bursary scheme, our postgraduate research programme and internship programmes as well as various functional skills and management development programmes. Good progress has been made in filling our senior management positions. In addition to this, we are focusing on the development of women in the department to create a pool of talent for senior management positions.

Finally, Chairperson, in light of the challenges facing the Public Service around financial mismanagement, I would like to commend the department on its efforts in continuously receiving unqualified audit reports from the Auditor-General and in ensuring that suppliers are paid within a 30-day period. I thank our Deputy Ministers, MaNtuli who is with us today, and Thandi Tobias-Pokolo, who, unfortunately, is ill; the director-general and the staff of the DTI; the chief executive officers, and the chairs of the boards and all the workers in the various agencies. I thank you and I trust that this House will support the DTI’s Budget Vote. [Applause.]

The CHAIRPERSON OF THE NCOP: Hon members, just allow me to welcome hon Watson who is back in the House after a long absence. [Applause.] We are happy to see your happy face and that you are back in the House again. I hope you will heal quickly. Please don’t strain yourself. You should take it easy.

Mr A WATSON: Chairperson, thank you for the good wishes, phone calls, messages and prayers. [Applause.]

The MINISTER OF TOURISM: Chairperson, when we celebrated the 50-day countdown to our hosting of the World Cup two weeks ago, we reflected on how far we had come since May 2004 when we won that right to host the World Cup. As South Africans and as a host country, we have consistently defied conventional wisdom and exceeded expectations in so many areas. The World Cup has brought the three levels of government, the private sector, NGOs and citizens together across all the provinces. We have all worked very hard and the time is almost upon us to reap the rewards of our combined efforts.

We all know that tourism is one of the pinnacle sectors in terms of its capacity to fuel global economic activity and also the creation of employment. In 2009 we saw a worldwide downturn in tourism and travel activity, with figures from the United Nations World Tourism Organisation, UNWTO which indicated that international arrivals fell by an estimated 4% compared to 2008. However, in South Africa, we managed to outperform not only that trend, but also the performance of most of our international competitors. We saw growth in foreign arrivals of 3,6%, which is especially positive considering that many of our primary source markets in Europe were severely depressed in terms of consumer spending.

In total, we welcomed more than 9,9 million foreign arrivals to South Africa last year. Our government has identified tourism as a key contributing sector to the medium-term strategic priorities for growing the economy and creating decent work. Last year, that led to the decision to form a new standalone national Department of Tourism. Over the next three years we will be phasing in the filling of positions in the department in line with our financial resources.

The department recognises the national priority of creating decent employment through inclusive economic growth. In this regard, we will increase job and entrepreneurial opportunities and also encourage the meaningful participation of previously disadvantaged communities and individuals. In the medium term, the department aims to increase investment in the tourism sector and internal tourism, but also to deliver a world- class visitor experience. We will also focus on entrenching a culture of tourism amongst South Africans and increasing the sector’s contribution to job creation and economic growth.

The department is now finalising the National Tourism Sector Strategy which will set out a vision for a successful world-leading industry and an ambitious path to achieve this. It is envisaged that this strategy will address the government and the tourism industry’s objectives in terms of, amongst others, economic growth, investment and transformation within the travel and tourism sector. It will also talk to people development, rural development, job creation, domestic and foreign arrivals with very specific targets and the delivery of a world-class visitor experience. We are planning to launch the strategy for public comment before the end of May 2010.

The Tourism Grading Council of South Africa, which forms part of South African Tourism, successfully completed a review of the grading system for accommodation establishments. This will improve levels of service delivery in the implementation of the grading system across our country. One of the actions from the review recommendations was the recent appointment of provincial master assessors who will focus on strengthening relationships with the industry, but they will also be assisting provinces in achieving their competitive potential.

We are also constantly expanding our stock of quality assured accommodation establishments across the country. A total of 7 710 establishments had been graded as of September 2009 compared to about 4 600 in 2005. The development of World Cup infrastructure will impact positively on growth in various ways and across numerous industries. We will host a truly world- class event which will enhance South Africa as a tourism destination within the global community. The championship will be a showcase that will introduce South Africa to millions more visitors. The media coverage and the focus on our country in the run-up to and during the event will be unprecedented.

In terms of our own figures, we expect 34 billion people cumulatively to watch the World Cup from 11 June to 11 July. It is a massive opportunity. In terms of accommodation our department conducted an audit and we know that we have more than 200 000 rooms available across the country, which will more than fulfil the World Cup needs. We now have a very good picture of the number of accommodation establishments and rooms in our country and also, very importantly, where they are situated. This will be our strategic advantage in terms of our future planning.

On the issue of pricing, we launched an investigation in February in response to persistent allegations of excessive price hikes and also the requests from members of the select and portfolio committees. I am happy to report, and that report has been made public, that the results of the audit indicated that the vast majority of our accommodation establishments were not charging exorbitant rates, and the facts and the figures are there for all members to analyse and look at. They are broken down by region, by city, and so on.

In terms of information provision, we have launched a national tourism contact centre for South Africa as a single point of call for all tourism- related information. The contact centre consists of a comprehensive website and the call centre which is available 24 hours a day, seven days a week and will serve customers in seven international languages. The website and the call centre provide a wide range of accurate and up-to-date information on tourism and travel.

This includes information on attractions, activities, experiences, services, restaurants and routes across the entire country. In addition to that, on Vote 35 we have state-of-the-art visitor information centres. A number of members were present when we launched that. That was in Mangaung, Polokwane and Nelson Mandela Metro, Mbombela and Rustenburg. These centres will leave a lasting legacy for tourism in terms of information provision and service excellence.

All across our country, our stadiums have all been designed as world-class, multipurpose facilities, capable of hosting not only sporting events, but also music and cultural events. Through ensuring that there is an integrated and co-ordinated intergovernmental approach to securing the hosting rights of strategic international events, the department intends to boost future events tourism. We have the figures available for members as to how many conferences and international meetings were held, how many we have won the rights to host over the next few years, and how many of those we are in the process of bidding for.

We also recognise the significance of national events as a source of domestic tourism revenue that we put in place to drive growth in this area. These mechanisms will include packaging easily accessible information about provincial and local events through interdepartmental information systems.

On behalf of the department, I would like to thank the chairperson, hon Gamede, and members of our select committee for their input and dedication. I am also grateful to our dedicated colleagues in the department and the acting director-general, Mr Dirk van Schalkwyk, for their commitment and hard work. I would also like to take this opportunity to welcome the newly appointed director-general Mr Kingsley Makhubela, who is sitting in the public gallery there. At present, he is the deputy director-general in the Department of International Relations and Co-operation, Chief of Protocol in Government. He will start as our director-general on 1 June.

I would also like to thank the Deputy Minister for her passion for the industry and for her support. To the hundreds of thousands of visitors that we are expecting to the World Cup, I would like to welcome them and encourage them to enjoy our special South African hospitality and the diversity that our provinces are going to offer. It is an experience that you will never forget. To my fellow South Africans, our time has come. Let’s host that event with distinction. I thank you. [Applause.]

Mr D D GAMEDE: Chairperson, the committee supports both Budget Votes, the one on Trade and Industry and the other one on Tourism. I will deal with both departments, but my colleagues will deal specifically with each department separately.

We are happy as a committee that both departments have been getting a clean bill on their finances. We commend them for that. During the first decade of freedom government succeeded to a moderately significant degree in promoting the implementation of policies on industrial development, enterprise promotion and broad-based black economic empowerment. Although government programmes qualitatively assisted the poor, its redistributive capacity failed to integrate the poor into the mainstream economy except for a smaller section of the black population.

This failure was attributed to the adoption of restrictive macroeconomic indicators and targets. The previous government’s industrial plan fell short on creating labour-intensive jobs and reintegrating small and micro enterprises into the mainstream economy.

The economy had an average growth rate of 3% from 1995 to 2002, but the rise in unemployment from 1,9 million to 4,4 million during the same period effectively meant a jobless growth. The economy had shed jobs in the manufacturing and mining sectors and showed growth in financial and services sectors. In its national general council, NGC, in 2005 the ANC concluded that central challenges facing our movement in the second decade are to defeat poverty and substantially reduce the level of unemployment.

Therefore, it is against this background that the 2010 strategic plan of the Department of Trade and Industry, DTI, needs to be analysed for its compatibility with the ANC’s strategy and tactics. Against this backdrop of the 2007-08 economic recession, the DTI’s Medium-Term Strategic Framework, MTSF, has identified the rapid fall in gross domestic product, GDP, and substantial rise in unemployment as major challenges that require urgent intervention by government. According to the 2010 Budget Review, GDP declined by 1,8% in 2009 compared to the annual growth of 4,9% between 2006 and 2008. As has been said, the official unemployment rate was about 24% to 26% in 2009 compared to the annual average of 22% in 2006 and 2008 as the hon Minister said in the interview on TV this morning.

In light of this, one needs to examine the strategic plan of the DTI to ascertain whether it addresses the ANC’s goals of decent work, economic growth, infrastructure development and balanced global trade as levers for fundamentally transforming the South African economy.

In the 2010 Division of Revenue, provinces were allocated R261 billion and local government R938 million. The DTI implemented policy interventions in the automotive, clothing and textile sectors.

Challenges that were identified include lack of mainstreaming of the Industrial Policy Action Plan, Ipap, in state-owned infrastructure projects. We call on the department to intensify its co-ordination with provinces in support of industrial interventions in labour-intensive sectors.

On empowerment enterprise development and development finance, the challenge has been fragmented on interdepartmental and intergovernmental co- ordination. The department must address the issue of access to start-up finance and micro loans even for townships and rural areas. There are situations where communities would be assisted to get finance of about R100 000, but they would say you must put up about R10 000 first. This issue is a challenge.

As the Minister also said in the media yesterday, we envisage investors investing about R105 billion. We urge the department to make the cost of doing business cheaper and accessible so that these investors come in. In Richards Bay, for example, a desert has been lying fallow since 2002. However, a few weeks ago, it did get some funds from the department and there is some action now. In trying to make business better, we would like the department to facilitate the access in doing that.

During our oversight visit to Mtubatuba a few months back, we identified challenges where people had markets - plants or something - but they were short of markets. The Small Enterprise Development Agency, Seda, was contacted on the spot, but to date we haven’t gone far with that issue. The same thing happened when there was the Taking Parliament to the People event in Limpopo. People were saying, “We can assist and help ourselves but we need markets to sell these things so that we can fend for ourselves.”

There is an issue which I raised with the director-general about a committee member, Mr Khuzwayo, who said something about accessing these offices as they are far away from the rural areas. He was once asked to drive to an office that was about 75km away, only to sit in a meeting for two minutes to arrange the next meeting. That is the nature of the inaccessibility of offices. That meeting was aimed at setting up a business plan.

We commend your leadership and participation in the World Trade Organisation, WTO, and hope that your further participation in the forthcoming round of negotiations assists the country. The country needs more participation on India, Brazil and South Africa, Ibsa, and Brazil, Russia, India, China, Bric, so that it becomes Brazil, Russia, India, China, South Africa, Bricsa.

We would want to strengthen the south-south relations on the European Union, EU. Today we have ratified one agreement on the EU, the African Union, AU, and Southern African Development Community, SADC. We are happy as a committee that the Ipap 2 is moving and is now in motion and is in the implementation phase.

On the issue of tourism, I would be referring to two of the ANC’s identified priority areas for the next five years, namely the creation of decent work and sustainable livelihoods, education and capacitating our people to play productive roles in building our nation and to fill positions of employment successfully.

A sustainable increase in the number of both domestic and foreign tourists has resulted in the continued creation of decent jobs in the tourism sector. It is estimated that for every 11 tourists who arrive, a job is created. On this basis, it is projected that direct employment will increase from 600 000 to 800 000 over the medium term.

In total tourism has contributed R356 billion to our national economy since 2003, with an average spend of R8 300 per tourist, even though our target was R9 900. The aim is to increase this average and the direct contribution of tourism to South Africa’s GDP by 3%, as the hon Minister has said. It is at 3,6 over the medium term.

Business tourism currently represents approximately 6% of all foreign arrivals in South Africa. This represents more than half a million visitors per year who come to South Africa for meetings, incentives, conferences and events. In 2008 these business tourists spent an average of R5 600 when in South Africa. This is an increase of 40%.

The prevailing international conditions did not cause the ANC-led government to retreat and withdraw as has been the case in so many other countries. They are rather provided a space for moving towards a significantly more labour-intensive growth trajectory.

ANC policy recognises that our cultural heritage sources and facilities, including those previously neglected, should be popularised, preserved, democratised, opened and belong to all people. It also follows that because we are proud of our rich culture and heritage we want the rest of the world to also feel, see and experience these emotional assets.

The 2010 Budget was tabled within the context of a deep global crisis brought on by the crisis in the financial sector in developed countries. Although not immune to the ensuing global economic downturn, South African tourism has so far resisted the financial crisis better than any other sector. There is growing evidence that tourism and travel can make a valuable contribution to the process of economic recovery.

There are still many areas that remain undiscovered by tourists and these areas range from our cultural villages in deep rural areas to our heritage places that define our new democracy and the heart of South Africa’s attraction.

It is important to note that South Africa is home to eight World Heritage Sites. All these places are of outstanding value to humanity. The transformation process, which is a key issue in tourism, has over the past 16 years undergone a number of phases, each building upon what has gone before, but with a necessary continuity and change, as demanded by the ANC and by the objective conditions that face our economy.

We are entering a new phase of a new growth path. It is this new growth path that today’s Budget Vote debate must speak to. For far too long tourism has lacked the necessary economic transformative component of building broad-based black economic empowerment, BBBEE. In particular, the sector lacked in building one of the most important components of broad- based black economic empowerment - that of social capital - whereby the broadest sections of our communities become economically empowered by collectively owning their wealth.

When we look at the annual report, there are certain issues which were raised by the Auditor-General. We hope the department has been taking care in respect of these issues ever since they were raised last March.

The use of consultants by the department was another issue of concern. We think this is improving. The committee supports the budget.

Mrs S S CHEN: Chairperson, hon Minister, hon Deputy Minister, all MECs, my hon colleagues, distinguished guests, ladies and gentlemen, while recovery from the global economic crisis is evident in many parts of the world, our country is still in the midst of an economic recession in which the manufacturing and mining sectors have been the most affected.

Turning the economy around necessitates a new way of thinking and this entails making difficult decisions that shape the country’s policies and programmes for the years ahead.

Further, government will need to forge relations with the business sector and organised labour to effectively deliver on public services, with persistent unemployment and high levels of inequality characterising the country. It is important that future policies create and offer all South Africans better economic opportunities

The National Treasury has projected a 1,5% growth in the South African economy in 2010. The projected growth this year is expected to be driven by increased consumer spending and government investment in infrastructure. But the challenges still remain in the downstream economy characterised by a vulnerable manufacturing sector. Local manufacturing is currently at a disadvantage and is unable to compete with manufacturing in other countries due to the lack of skilled labour, the lack of investment in this sector, and the high price of raw materials required for manufacturing.

Although significant growth in the automotive industry was realised through the Motor Industry Development Programme, the majority of the components used in the production process were imported. The revenue that could potentially have been generated by local manufacturers was lost to imports of components produced internationally. There are many who argue that South African manufacturing is of poor quality, largely because of the lack of skilled labour. However, the reality is that the training of the workforce will only take place if a need for skilled workers is created.

Currently, manufacturers are being severely hampered, largely because they are unable to purchase raw materials at good value, due to high import duties. Many factories in the country have gone out of business because their customers were able to source and buy imported goods at a far lower price than those produced locally. We need to look seriously at drastically reducing the current duties imposed on the import of raw materials used for manufacturing. To be able to compete in the global market, we should consider the idea of imposing a zero rating on raw materials that are unobtainable in South Africa and raise tariffs on downstream industries to promote competitiveness and prevent loss of revenue from tariffs.

In the meantime, the Department of Trade and Industry, DTI, should also review and renegotiate trade agreements that have become either outdated or redundant, such as those relating to the Southern African Customs Union, SACU, which has long-standing, outdated agreements with our neighbouring countries which allow duty-free imports that benefit the countries involved, but at great cost to South Africa.

Our country is in desperate need of investors. The government must align itself with the business sector and form relationships that will allow local manufacturing to prosper by creating a friendly business environment as well as an attractive incentive scheme.

In just over a month, the 2010 Fifa Soccer World Cup will take place in South Africa. This historic event will bring with it many opportunities, as well as many possible risks for our nation, such as a potential economic downfall, following the World Cup.

The Department of Tourism is well prepared for the World Cup, although the recent global economic crisis as well as the restrictions that Fifa has placed on local industry have created many difficulties.

Both the DTI and the Department of Tourism should formulate an evaluation plan that will measure the effect of the World Cup in terms of its influence on the economy. It is important to understand the actual value of hosting such events in relation to the money and efforts we spend on planning and preparing for them.

In addition, we need to ensure the integration of tourism priorities and plans into local, provincial, as well as national government planning, and facilitate interdepartmental contribution to tourism growth. There is also too much separation between the overseas departments and better communication is needed between them. Resources and information should be shared between governmental departments. The departments will be more financially and strategically effective if there is efficient and consistent communication.

Sharing of knowledge and ideas between all nine provinces is also important through joint initiatives between the three spheres of government to reduce duplication and costs. This will create a better understanding of how each department is working towards branding South Africa internationally. I thank you.

Mr A WINDE (Western Cape): Chairperson, I feel privileged to be part of this debate. I will start off with trade and industry and the economy. I think we have just come through a downturn that has seen us shed 880 000 jobs over the past four quarters.

One wonders, if we did not have this massive window in front of us called the 2010 World Cup, what would that job shedding actually have been because, as a country, we have invested a huge amount of money in infrastructure. I think that has helped us to cushion a major part of that downturn blow.

However, that made me think specifically about the Western Cape, where an infrastructure upgrade and investment we have of R14 billion. We have seen, over the very short while, upgrades in various ways: We have seen upgrades in a really great looking and a functional new airport, and we have seen the building of a wonderful new stadium, amongst other projects.

Then one wants to contrast that with how we deliver on our housing. One just has to look at those two, infrastructure and housing, where we are inundated with problems of houses cracking and falling to pieces. Both of these form part of the economy. They both play a major role in our economy and I think what we need to do is to spend a bit of time in investigating why, on the one hand, we have been so successful and, on the other hand, we have failed so dismally.

I would also like to talk a little bit about trade matters, as the Minister also mentioned. There is one concern that I have. There was a very successful visit to the UK not so long ago by the President. One of the matters that was discussed there was the doubling of trade - the doubling of trade over the next five years.

We are already two months into that next five years since that discussion took place. And, I think, if we really want to be serious about doubling trade with one of our major trading partners over the next five years, we need to see a plan.

I am prepared to commit from the Western Cape. I do think doubling is quite in order and I am prepared to commit wherever possible from the Western Cape to reach that target. But I think we need to actually have a fully fledged plan on the table to be able to achieve and reach at least somewhere towards that goal.

I also want to talk about the SMME Development and specifically refer to the City of Cape Town with reference to an item that is being tabled at the moment where we have policy differences between the national government’s policies and the provincial government’s policies. And that is specifically around BEE. I think the City of Cape Town can be a prime case and we really need to investigate that to see if there are differences. That is how democracy works.

We learn from each other and one should be given the space to actually prove that there are policies that are different and that we actually adopt those policies. It has been shown since 2006, in the City of Cape Town, that there have been major differences with regard to procurement, specifically from the Human Development Index, HDI, and SMMEs.

In the city we have seen 10 000 vendors in 2007 increase to 15 000 in 2010. And at the same time, we also have seen that the HDI and SMME component makes up 80% of that component. That really shows that it is the policy difference and it has worked. I think we need to put that challenge out there to say let us look at that policy difference and see how we can actually influence the other side to make a difference.

I also want to say to the Minister that perhaps we need to re-examine the training layoff scheme and the money that has been made available. I know that in the National Assembly the President has answered the question just a while ago that 15 000 jobs have been saved by that scheme. I am not sure where those 15 000 jobs are. So far the report I have shows 2 399 jobs, but perhaps we are a bit short on some of the reporting and perhaps closer to 5 000. But I really think we need a different look at it; I am not sure.

I think there is a wrong perception on how to actually apply for it, because I do believe that we need to use this opportunity to reskill and to use our skills development process to make a difference there. But, Minister, I think we seriously need to actually have a look at that system; there are some shortfalls there. We should have seen much better use of that opportunity and we just have not seen it.

I also want to talk about the programme that we ran over the past nine to ten months. That programme is called Work and Skills for 100 000. We have put up a challenge to businesses and said that we are prepared to partner with them. We put R1 000 a month per learner for a 12-month period with a service level agreement, SLA, to say we want to have a skills development programme for people who have shown commitment to pass matric but cannot find jobs.

That is the biggest component of the unemployed out there, people who have actually got a school qualification – not a tertiary qualification - but because they don’t have work experience they can’t get a job. We are partners with industry. Sometimes industries have come up to R10 000 a month per student. We have an unbelievable success rate with it.

We have had students coming out through partnership with convention centres, with Koöperatieve Wijnbouwers Vereniging, and with the hospitality industry. We have shown huge success in it and we are going to be rolling it out again this year. That, perhaps, is something that we need to also look at, and see if we can learn from each other in that respect.

I want to talk a little bit about the industrial development zone, and I want to thank the Minister because the DTI has actually partnered with it in the Western Cape to continue with the study into the IDZ in Saldanha Bay. I know that there is a study on the IDZ that is going on at the moment.

Minister, perhaps this is another area that we can have a look at. Perhaps we can tweak and maybe change some ANC policies that are fairly stringent around labour laws, etc, in the IDZ. Let us use it as a test case and if it fails then we will face the political music but if it succeeds it could be a success for the whole country.

Minister, I would also like to talk about the oil and gas industry. I think that is one area where we, specifically in the Western Cape, are failing. I think as a country we are failing.

Early in this democracy, our President, Nelson Mandela, led two delegations into Africa; at that stage, Africa contributed 7% of the world’s oil. Since then we have had a lot of talks and I must say the province as well has had a lot to talk about. Now we are contributing 12% of the world’s oil and we are still not in any space.

We should logistically and financially be the oil capital of Africa; it is still owned by the Americans and other nations but not in Africa. I think we need to play a far more prominent role there. I actually look forward to the national Minister perhaps partnering with us in the Western Cape regarding that.

If I had time, I would move onto the private sector, but I must just say a few things about tourism during the 2010 World Cup. From the Western Cape side, we are ready and I think this is a massive opportunity for us. I must mention one thing and that is around the BBC basing themselves in Cape Town.

Perhaps I should ask not the Minister but other members of the ANC in this House to speak to their colleagues in the Western Cape. We rented out the top of Somerset Hospital for R57 000, for the period of the World Cup. They are saying that the R57 000 is ridiculous; we should have charged them much more.

All I can say to you is that they are building a glass box on top of the hospital and there will be four views in BBC presentation for 32 days. It will even include the mountains of Cape Town, the waterfront, the stadium and the city’s skyline. You cannot buy that kind of marketing and exposure for South Africa as far as tourism is concerned.

Let us not get into some petty political fight over R57 000 for the rental. They are going to leave all of that behind as a legacy for the film industry. Perhaps we need to slow down a bit on that fight.

I must also talk about what we are busy doing. The Minister spoke about the national policy and the roll-out, at national level, on tourism. It is also something that we really need to look at. When you go into any international marketing platform and you see South Africa the way we are, specifically our municipalities being involved in trying to market our provinces, we don’t show one committed and united face as South Africans.

I think we need to make a big difference and change because, quite frankly, even in this House, if I were to say to any member of this House, “Would you like to go to Matzikama Local Municipality on holiday?”, how many actually know where Matzikama Local Municipality is? [Interjections.] You know it, I am glad. But, I promise you, when you go to South Africa they do know, and when you go to the international market they don’t know at all. At the moment we are confusing the market out there. It is the biggest opportunity for job creation to come out of tourism. Minister, we’ll support you if you could get all of that into one space. Thank you. [Applause.]

Mr A J NYAMBI: Chairperson, hon Ministers, MECs, hon Members of Parliament, distinguished guests, ladies and gentlemen, allow me to open my debate by quoting the late President of Mozambique, Samora Machel:

In reality, a country that does not ensure the involvement of all its population at all levels of economic activity is certainly going to perform well below its actual potential.

Minister and Deputy Minister, we were fortunate to start this term of the fourth democratic Parliament by visiting your office and all public entities that are part of the Department of Trade and Industry, DTI. The visit and the interaction was a real eye-opener to the committee, also with regard to the challenges ahead of us. It was during that visit that the aim of their department was clarified.

Chairperson, allow me to quote the Minister in his strategic plan and what was said on that day:

The aim of the Department of Trade and Industry is to lead and facilitate access to sustainable economic activity and employment of all South Africans through its understanding of the economy, its ability to identify economic opportunities and potential, and its anticipation of the future. The department also aims to catalyse economic transformation and development … In this way, the department will contribute to achieving government’s vision of an adaptive and restructured economy, characterised by accelerated economic growth, employment creation and greater equity by 2014.

The analysis makes an overview that locates the trade and industry sector in the realm of ANC resolutions and policy statements.

As part of the politically negotiated settlement, the ANC in the 1990s began developing an economic policy perspective for a future democratic state to transform the South African colonial economy and society into an economy based on greater equity, nonracialism and a higher standard of living. This process is testimony to the mission of the national democratic revolution which seeks to ensure that every South African, especially the poor, experiences an improving quality of life. The national democratic revolution, NDR, strives to build a developmental state shaped by the socioeconomic dynamics of South African society. The ANC-led government began to lead and to implement programmes that began to address economic challenges of the 1990s.

This represented a paradigm shift from the exploitative and racially entrenched economic disparities of the past to a pathway that sought to widen the available resources for use by all citizens of the country. The government commenced the task of embarking on the implementation of the industrial policy which ensures more investment in such critical areas as infrastructure; the manufacturing of electronic, transport, telecommunication, textile and other goods; efficient commercial agricultural production; ecotourism; and housing construction.

During the first decade of freedom, the government succeeded to a moderately significant degree in putting in place measures that promoted the implementation of policies of industrial development, enterprise promotion and broad-based black economic empowerment. Though the government programmes qualitatively assisted the poor, its redistributive capacity failed to integrate the poor into the mainstream economy, except for a smaller section of the black population. The National Council of Provinces’ interaction with the Greater Tubatse Municipality bears testimony to that.

With an economy mainly driven by growth in the financial and services sectors, and the shedding of jobs mainly in the manufacturing and mining sectors, it is imperative that, in the light of those challenges and the speech by the Minister today, the DTI’s strategic plan indeed addresses the ANC’s goals of decent work, economic growth, infrastructure development and balanced global trade as levers for fundamentally transforming the South African economy. Linked to these, it is imperative to gauge the effectiveness of the instruments that the DTI has utilised to advance in support of a developmental state.

These instruments include the use of developmental finance institutions’ incentives for industrial and trade promotion; regulatory bodies to eliminate antimonopoly behaviour; enterprise development through broad- based black economic empowerment; and reaffirmation of support for the co- operative movement. The challenges need to take into account the developmental role of provinces and their ability to provide social services, as outlined in the 2010 division of revenue.

With regard to the DTI’s strategic plan, the critical issues are, to mention a few, empowerment; enterprise development and development finance; support for small, medium and micro economies, SMMEs; broad-based black economic empowerment; and competitiveness of the local and provincial economies.

Minister and Deputy Minister, the department needs to be applauded for its role in assisting with the enforcement of legislation as that has dealt with a huge impediment, especially in liquor regulation and unfair business practices. However, we are mindful of the challenges ahead.

The resolution on accelerated shared growth advocates for measures to be taken in addressing monopoly pricing and other forms of rent seeking and anticompetitive behaviour. We are definitely looking forward to the Consumer Protection Act which will come into force this year to protect consumers and build their confidence in markets.

In conclusion, Minister and Deputy Minister, indeed, very significantly, the performance agreement you signed with the President on Friday 30 April also requires you to work with other Ministers in the cluster to produce a clear, detailed, costed and multipronged strategy to reduce youth unemployment. This is a very important priority focus which we, as members, are to take and devote particular attention to as we move forward. The ANC supports this Budget Vote. I thank you. [Applause.]

UMntwana M M M ZULU: Sihlalo weNdlu, abahlonishwa oNgqongqoshe bobabili namaPhini abo, izinhloko zeMinyango ezikhona namalungu ahloniphekile akule Ndlu, mhlonishwa Ngqongqoshe Wezokuvakasha waleli lizwe, ezokuvakasha yinto esigxile kuyo ngenxa ka-2010 kuleli lizwe. Ngiyazi ukuthi kulo nyaka uMnyango wakho uthole uxhaso lwemali olwengeziwe kuhulumeni wethu ukuze ukwazi ukusizakala futhi uhlangabezane nezimfuno zokusiza abantu bakuleli lizwe.

UMnyango wakho kufanele ubhekisise ukuthi yonke imikhakha kahulumeni imelelekile ukuze abantu basizakale. Abantu bakithi abahlezi eSoweto kuphela, abahlezi eMlazi kuphela, abantu bakithi bahlezi kwaNongoma, eNkandla, KwaMhlabuyalingana, yilapho kuhlezi khona abantu bakithi. Ngifuna ukubona lo-2010 ukuthi uzokwazi yini ukulinganisa abantu bakithi bazuze bonke kulolu hlelo olukhona.

Ngiyazi ukuthi kuyona yomibili le Minyango lukhona uhlelo olukhona lokuxosha indlala noma ukususa ikati eziko. Nalento yokwakha amathuba omsebenzi, bahlonishwa kufane siyibheke ukuthi ihamba kanjani, iyakwazi yini ukusiza abantu bakithi ngoba kukhona umthethomgomo okuthiwa i- Industrial Policy Action Plan - angazi noma kwenziwa umqondo wami omfushane noma kwenziwa ukuthi ngimfushane angikwazi ukubona ngale, angiboni ukuthi izokwazi ukuthatha abantu bakithi ibabeke lapho sifisa babe khona.

Ngaleyo ndlela mhlonishwa ngiyazi ukuthi le Minyango yenu uma ihlangene kungaba khona ukusizakala kwabantu bakithi ezingeni lempilo, kusukela kuhulumeni wasekhaya, uhulumeni wezifundazwe, kanye nohulumeni kazwelonke, bayosizakala abantu bakithi uma lezi zinto zingenzeka.

Siyi-IFP, asinakho nokuncane ukungabaza ukweseka lesi sabelomali ngoba sizosiza bona abantu bakithi abakade bekhala, behlupheka bengenakho ukudla, njengamanje kukhona abalale bangadlanga, ukusizakala kwalaba bantu kuzokwenza izinto zenzeke. Niphinde nibheke mhlonishwa indaba yalawa mabhange angafuni ukunikeza abantu bakithi imalimboleko ukuze basizakale, ngoba awukho umsebenzi engingawenza ngingenayo indawo lapho kufanele ngisizakale khona. Kuyisicelo sami njengomuntu waseNingizimu ne-Afrika ukuba nikwazi ukusiza kuyo yonke leyo mikhakha. Ngiyabonga. (Translation of isiZulu speech follows.)

[Prince M M M ZULU: Hon House Chairperson, two Ministers and their Deputies, heads of departments who are present here and the hon members of this House, hon Minister of Tourism, we are focusing on tourism because of the 2010 soccer event that will take place in this country. I know that your department has received an increased budget allocation from our government so that it can meet the needs of the people of this country.

Your department should see to it that all the spheres of government are represented so that the people will be able to get service delivery. Our people are not found in Soweto or Umlazi only, but they are also found in KwaNongoma, Nkandla, and KwaMhlabuyalingana – that is where our people are living. I want to see if this 2010 event can provide all our people with equal benefits from its present programmes.

I know that both these departments have programmes aimed at alleviating hunger. We must look at how the creation of job opportunities is driven, hon Ministers; we must see if it is able to provide for our people as there is a policy that is known as the Industrial Policy Action Plan. I am not sure whether it is because I am ignorant or short-sighted, but I cannot foresee it putting our people where we want them to be.

Therefore, hon Minister, I know that if your two departments work together, our people can be catered for as far as their lives are concerned - from local, provincial and national government. Our people will be able to receive assistance if these things can happen.

As the IFP we do not have the slightest doubt that this budget allocation will be able to provide for our people who have been complaining and struggling without food. And as we speak, there are others who went to bed on empty stomachs, but if these people are provided for, better things will happen. Therefore, we support this Budget Vote. Ministers, you need to review the issue of these banks that do not want to give loans to our people so that they will be able to find assistance because one cannot do anything without a place to perform any kind of job. It is my plea as a South African that you assist in all those areas. Thank you.]

Mr K A SINCLAIR: Chairperson and Ministers, it is clear that, as South Africans, we need to do something drastic to create economic growth and get South Africa out of the downturn of the economic cycle. Figures show that, whilst our exports grew to R448 billion in 2008, they are back to the 2007 level of R350 billion.

The export market is becoming very complicated because of the profound alteration and shifts. Therefore, to premise our economic growth on the basis of substantially increasing our manufactured exports – a conventional approach to industrial policy in South Africa – may boomerang on South Africa.

Greece, in particular, and other European countries are experiencing serious economic problems. The notion of a virtually limitless overseas market, especially in the prosperous north and west, needs to be shaken off. If plan A, which is your Industrial Policy Action Plan, Ipapm 2, does not live up to expectations, does the department have a plan B or C?

Related to that is the issue of the strong rand and the impact that it has on exports at the moment.

The third issue regarding the Department of Trade and Industry’s, DTI’s, input, is that car manufacturing is in trouble all over the world. Given the fact that the DTI is investing a lot of money into supporting the car manufacturers, it’s necessary that we ask if it would not be better to have a niche market, specifically regarding the proposed electric car that is being marketed as a South African product. It is a bit unfortunate that one only has four minutes to speak on these issues, but I just want to make three remarks with regard to tourism. The first is that I’m very happy that a director-general, DG, has been appointed. I think it is step in the right direction. Unfortunately, however, once again the appointment proved that the ANC sticks with the redeployment policy and the same officials are kept in circulation.

The second issue concerns the 2010 Fifa World Cup and the remarks that the hon Minister made. I think we can agree that the 2010 Fifa World Cup is indeed a window of opportunity, and that South Africa will host a very good, productive and safe Fifa World Cup. However, for a province like the Northern Cape, the benefits of the 2010 Soccer World Cup are few and far between, and it’s necessary that we now go to the next level in terms of the capital infrastructure development of our country and specifically the development of our rural provinces with the same impetus that was created with the 2010 Fifa World Cup.

The last issue regarding tourism is changing the mind-set of South Africa and continuously increasing investment in the rural areas. In this regard we know that the majority of South Africans travel extensively, not necessarily to go to tourist sites, but to visit their families. I think the good thing about the Minister’s legacy is the Sho’t Left campaign. Cope, I think, wants to suggest that those initiatives be taken further and also that more should be invested in rural tourism development. We have a lot of opportunities in that area, but unfortunately they don’t always materialise.

I want to conclude by saying that I hope that this is not the last time that we see the Minister of Tourism, and I hope that he won’t be redeployed to a different position in the world economy. Thank you. [Applause.]

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Mrs B M Ntuli): Chairperson of the NCOP, Minister Rob Davies, Minister Van Schalkwyk, hon MECs, hon Members of the NCOP, ladies and gentlemen, it is 36 days and about 7 hours to the showpiece 2010 World Cup. For those who have tickets to the opening game, life seems to be an endless wait. This could be likened to how our communities feel - waiting for a better life. People want to feel the presence of the Department of Trade and Industry on the ground.

As a believer, it is my conviction that the development of our people, no matter how daunting the task may be, can be realised. I believe that our country has the potential we need to eradicate poverty. All we need is a leadership that is ready, capable and equal to the task of responding to the aspirations of our people. We can create a world-class economy, working together with everyone willing to do this. This is our country, and other people see the potential … … eMzansi. Thina simile eJordani, abanye bayawela - iculo lelo. [… in South Africa. We are standing at the River Jordan; others are crossing over – that is a hymn.]

Last year, I reported a process initiated by my office to meet all the provincial MECs for economic development in order to co-ordinate our work better. This, I am pleased to report, has been done. I wish to thank all the MECs for the extremely warm manner in which these meetings took place. While the nine provinces differ in many areas, there were common points raised across the board. Here are some comments related to these visits.

The main issue raised was the lack of a cohesive and efficient communication system amongst the three spheres of government, resulting in national government not always knowing what the provinces are doing and vice versa.

Through great effort by the Empowerment and Enterprise Development Division, EEDD, and the various provincial heads of departments, a forum has been established to map the way forward. This forum had its meeting, and from the side of the Department of Trade and Industry, we have assigned a provincial champion to spearhead projects in each province. The list is available. We also have our call centre, which you all know.

We are particularly, but not exclusively, focusing on projects that will revive industries in the former homeland areas. Together with our provincial counterparts, we have identified a number of buildings that belong to the former development agencies that have fallen into disuse to use as incubators; we will supply the necessary tools that can be used by the entrepreneurs and provide assistance and so on.

On co-operatives, for this year, we are speeding up our efforts to initiate the formation of an advisory body for co-operatives. I must be honest and mention that this has not been an easy task because not everyone shared a common perspective on the way forward. We will convene an inclusive meeting to continue with our efforts and harness the collective wisdom of all parties to see this body to fruition. I know I have the absolute support of my Minister, Minister Rob Davies, for this effort.

Experience and research have shown that the biggest challenge confronting co-operatives is in the area of education and training. In this regard, government, through its strategy and legislation, intends to establish a national co-operatives academy dedicated to providing education and training to co-operatives and small, medium and micro enterprises, SMMEs. The aim of the Department of Trade and Industry is to lead and facilitate access to sustainable economic activities and employment of South Africans through its understanding, and knowledge of economic opportunities. Let us do our work differently. It must not be work as usual.

We are also working together with provinces to facilitate access to international and local markets for co-operatives by utilising and accessing the Export Marketing and Investment Assistance scheme, Emia, support for co-operatives. Last year, we sent 11 co-operatives to the Milan exhibition; 8 arts and craft co-operatives to the handicraft exhibition in Portugal; and 4 co-operatives to the Decorex exhibition that took place in Johannesburg. We intend to double these figures in this financial year. We also need to give not only more people this opportunity, but also different people.

On the funding aspect, we are working closely with provinces to increase access to finance for co-operatives. The establishment of the National Co- operative Development Agency, NCDA, will play a major role in this regard. Last year, we managed to disburse R35 million supporting 180 co-operatives projects: 44 projects in KZN; 48 in the Eastern Cape; 29 in Gauteng; 16 in Limpopo; 15 in the Western Cape; and another 15 in the Northern Cape. We would like to reach out to the remaining provinces as well.

We have also signed a memorandum of understanding with Proudly South African in order to facilitate market access to co-operatives by extending them the Proudly South African procurement facility.

Asithenge ekhaya bakithi. [Let us buy from our local markets.]

Let’s ask government departments to support SMMEs and co-operatives. Give us just 30% of their procurement.

Ake bathenge kithi. [Let them buy from us.]

As a popular song goes, we must “make the circle bigger”. We have to broaden economic participation. We have a generation of young people out of work. We have numbers of women in informal business who, if not provided with opportunities, will never enter the economic mainstream. Let us invest in our people, black and white. Let’s come out of our cosy offices and go to the people down there.

I am inviting young people and women to come to the fore. I am also appealing to hon members to direct us to communities where we can offer support for economic activities. Yesterday, I mentioned visiting a bakery run in a container in KwaZulu-Natal. I want to see more of those bakeries in all provinces. We are working on that. Each province might get approximately four to five, depending on the availability of resources. I know you have the potential. The Sakhakulunge Co-op Bakery is a real success in Kokstad. Viva Kokstad! We also want to do away with the bureaucracy - big volumes of application forms; intimidating tender documents; long waits for funding; board meeting after board meeting; etc. We want to do away with that. If we are honest, we have not been a spectacular success in this area of enterprise development amongst rural and peri-urban communities. This year, we want to escalate our work rate. We are continuing the programme started by previous Deputy Ministers of taking the Department of Trade and Industry to the people. We aim to do it in a slightly different manner as per a Cabinet directive that we move away from the mass meeting type of event to a more focused approach. This is South Africa, our land. We are here to stay. Let’s make South Africa a better place.

The Small Enterprise Development Agency, Seda, will be key in this programme, and we encourage the efforts by Seda to have a presence in each district municipality of our country. It should be more visible. In the Western Cape, we have the REO Door; in Gauteng, we have the Gauteng Propeller. Please, be visible on the ground; I’m begging you.

With regard to our programmes for women enterprise, I have met with the provincial chairpersons of the SA Women Entrepreneurs’ Network, Sawen, as well as the Sawen board to find a way to make our work have a greater impact. We reconstructed the board into an interim advisory board with full provincial representation. It is now going to be a bottom-up structure and not a top-down structure representing women on the ground.

The TechnoGirl programme run by the gender unit will continue and take place in the Northern Cape in August this year. This is part of our contribution to the five priorities of government, where girl learners in matric from rural and semi-urban areas are taken on an entrepreneurship and life skills camp. We have just signed a memorandum of understanding with Microsoft for innovation skills technology transfer. I’m saying, let’s work together.

I am also pleased to announce that we are continuing with the Technology for Women in Business Programme, Twib, including the annual awards for women who are applying technology in their businesses. This year, we will upscale this programme to make it accessible to more women in the rural areas, as well as to link this with the overall plan of the Ministry. In our pursuit not only to meet but also to exceed the expectations of the five priorities of government, our department is looking at methods that, together with the provincial colleagues, we can initiate during this financial year. I have also had discussions with various people from academic institutions and the private sector who are willing to offer some assistance to meet our development goals. You are also invited, hon members.

On technical training, management skills and co-operative compliance training, we need a co-operative academy. We will ask the assistance of Minister Blade Nzimande in utilising the sector education and training authorities, Setas, in this regard. We have a challenge to review and amend the Co-operatives Act, Act 14 of 2005.

I wish to thank Minister Rob Davies for the industrious manner in which he is leading the Ministry. Thank you to the Deputy Minister Tobias-Pokolo – and we wish her a speedy recovery in hospital - for her support as well. My gratitude goes to hon members of the committee who are keeping us on our toes. Thanks to Director-General Tshediso Matona, Acting Deputy Director- General Mr Sipho Zikode, and all the other officials who make my job a little easier.

To the young people of South Africa, I want to give a few words of wisdom: Plan while others are playing; study while others are sleeping; decide while others are delaying; prepare while others are daydreaming; begin while others are procrastinating; work while others are wishing; save while others are waiting; listen while others are talking; smile while others are frowning; comment while others are criticising; and persist while others are quitting. Don’t quit. You cannot quit before you start.

Sengigcina-ke Sihlalo … [Chairperson, in closing …]

… I want to say to us, let me end by inviting all business bodies – the National African Federated Chamber of Commerce and Industry, Nafcoc; the National African Farmers Union of South Africa, Nafu; the Metrology Instrumentation Group, Mig … Wat is daai ander een nou? Die Handelsinstituut. [What’s the name again? The Afrikaanse Handelsinstituut.]

… and others to come to the fore. Let’s talk and see how we can build this beautiful South Africa of ours. Let’s also go out there and support Bafana Bafana, hon members. You are all invited to contribute to this fight against poverty. No idea is stupid, no matter how small it is. Let’s work while others are sleeping; plan while others are procrastinating; listen while others are complaining; and persist while others are quitting. Together, we can do more.

Asisebenzisane-ke maqabane, asisebenzisane-ke bahlobo bami, malungu ahloniphekile akule Ndlu-ngiyabona senginesikhashana esincane lapha, ngithanda ukuthi asingabe sisazenza izinto ngendlela ebesijwayele ukuzenza ngayo.

Kunendatshana engiyifunde kwenye incwadi ethi: Kwakukhona umama owayejabulela usuku lwakhe lokuzalwa wathuma indoda yakhe wathi kuyo: “Hamba uyongithengela umlenze wemvu”, wayejwayele-ke ukuthi uma efika laphaya afike akusike lokhu okusekugcineni, kodwa indoda yabuya nakho ingakusikanga, wase ebuza umntwana wathi kungani ungayisikanga le nyama? Yaphendula indoda yathi:“Angazi ngikhohliwe ukuyisika, yase ibuza ukuthi kambe yini kufanele isikwe?”.Waphendula ngokuthi, asibuze umama ngoba senzela yena. Mama, kungani siyisika le nyama esekugcineni? Waphendula umama wathi: “Bengibona umama wami eyisika”. Ubaba wathi asishayele ucingo ugogo, ngempela bamshayele ucingo ugogo, “gogo kungani wawuyisika le nyama esekugcineni? Waphendula ugogo wathi: “Bengiyisika ngoba ibhodwe lami lalilincane. [Uhleko.]

Ngicela senze izinto ngendlela ehlukile, singenzi izinto ebezenziwa uma singazi ukuthi abanye babezenzelani, kodwa senze izinto ezizosiphumelelisa. Ngiyabonga Sihlalo ngethuba onginikeze lona. (Translation of isiZulu paragraphs follows.)

[Let us work together, comrades and colleagues. Hon members of this House, I am aware that I’m left with little time. I would like to say that we should stop doing things the way we used to.

There is a short story that I read in a certain book which read thus. There was a mother who was celebrating her birthday who said to her husband: “Go and buy me a leg of a lamb”. She used to cut the piece of meat at the end of the leg of lamb, but the husband returned without cutting it, then the child asked Why didn’t you cut the piece of meat at the end?” The husband answered and said: I don’t know; I forgot to cut it.” Then he asked, “By the way, why does it have to be cut?” He answered by saying, “Let us ask mother because we are doing it for her”. “Mother, why do we cut this meat at the end?” The mother answered and said: “I used to see my mother cutting it.” The father said, “Let us phone grandmother”. Well indeed they phoned the grandmother, and asked, “Grandmother, why did you cut the piece of meat at the end?” The grandmother answered and said, I used to cut it because my pot was small”. [Laughter.]

I request that we do things in a different way; let us not do things in a certain way if we do not know why the others were doing them in that way, but let us do things so that we can prosper. Chairperson, thank you for the opportunity you gave me.]

Thank you very much. [Applause.]

Mr F ADAMS: Chairperson, Ministers, departmental staff, Deputy Ministers, hon members, you know, Deputy Minister, that we are so good. I hope that the DA and Cope … I see the member of Cope has gone to report to I don’t know which leader, Shilowa or Lekota. So, it is a pity.

Chairperson, tourism is one of the world’s major industries, if not the largest. In South Africa, we are still growing our industry to reach its full potential in order to tap into this money spinner, swell local opportunities and create jobs to fight poverty and to showcase our land and the splendour and diversity of our region. In order to have the edge in our industry, we have to think afresh about what we do and do it better. In this regard, we welcome the Minister’s initiative to develop new products and to grow the industry.

Ons kan baie leer by ander lande, maar ons het soveel eiesoortighede wat ons kan bemark om Suid-Afrika ’n voorkeurbestemming te maak. Daarom moet ons eers ons eie sterkpunte uitbou en bemarkbaar verpak sodat ons land vir talle reisigers meer aantreklik gemaak kan word. So word ons ’n leier in die bedryf en ’n trekpleister.

Ons het in die afgelope jare gesien dat geleentheidstoerisme toeneem. Ons het van ekotoerisme gehoor en ook kultuurbelewenisse. Toe het Suid-Afrika avontuurlustiges begin trek. Daarmee saam het mediese toeriste toegeneem, mense wat vir vakansies en operasies hierheen kom. Ons het al ons deel van konferensietoerisme gekry en gaan binnekort weer die krag van sporttoerisme sien wanneer die spanne, personeel en ondersteuners van die beste sokkerspanne op aarde hierheen kom om mee te ding in die wêreld se grootste skouspel, die Fifa-Sokkerwêreldbekertoernooi. (Translation of Afrikaans paragraphs follows.)

[We can learn a lot from other countries, but we have our own distinctive character which could be marketed to make South Africa a preferred destination. For this reason we should, firstly, consolidate our strengths and package them in a way that is marketable so that our country would be more attractive to a greater number of travellers. In this way we will become a leader in the industry and a draw-card.

Over the past few years we have seen that event tourism has increased. We have heard of ecotourism and also cultural experiences. Then South Africa started attracting adventure seekers. At the same time, medical tourism has also increased, with people who come here for holidays and medical procedures. We already have our share of conference tourism and will shortly experience the power of sports tourism when the teams, staff and supporters of the best soccer teams in the world come here to compete in the world’s most spectacular event, the Fifa World Cup Tournament.]

We are proud and agree that it is our time. It is a great chance to occupy, for a whole month, prime television space and have the attention of billions of people across the globe. They will feed on soccer, but they will also take note that this pageant takes place in our wonderful country. I thank the Minister, his deputy, the department, our tourism agency South African Tourism, and all other role-players for their hard work to market South Africa at the highest level and, especially, for focusing beyond the soccer spectacle and looking towards the future of South African tourism as a whole.

In this regard, we are looking forward to receiving your proposals to review the existing legal framework for tourism, Minister. We also welcome on board the new director-general, Mr Kingsley Makhubela. I would also like to congratulate our team, led by Minister Van Schalkwyk, for outperforming most international markets in 2009. I hope the hon Winde listens to this, Chair. Together with the increase in the number of arrivals and growth in income, they have achieved this even in difficult economic times. This fact, together with the 2010 Fifa Soccer World Cup boost, is a firm base from which to grow our industry.

We know how vulnerable tourism is to negative perceptions. That is out of our control, specifically the DA’s perceptions. In light of this, we wish to ask our Minister to also engage his Cabinet colleagues to formulate a strategy to deal with the World Health Organisation’s precautionary advice to tourists, including soccer players and fans, to avoid mosquito bites and contact with raw meat, in order to avoid infection by Rift Valley fever germs. Please deal with this swiftly. Hopefully, we will have a cold spell soon to kill the carrier of this disease before the bulk of the soccer crowds arrive.

Voorsitter, ek het nog ’n paar gedagtes oor die bevordering en uitbou van ons bedryf hier in Suid-Afrika. Die Minister en sy span is deeglik bewus daarvan dat streekstoerisme ’n al hoe belangriker faktor geword het vir ons bedryf. Ons sal graag wil sien hoe bure en ander besoekers van ons vasteland ons meer besoek. Ons sal egter ook opnuut moet kyk na ons binnelandse toerisme. Al is dit net vir vakansies, is dit ’n uiters belangrike onderdeel van ons toerisme-landskap en behoort ons ook te gaan kyk na hoe kleiner dorpies en afgeleë streke meer baat kan vind. Ons het juwele op die platteland, in al ons provinsies, wat wag om besoek te word.

Ek weet die Minister en sy span werk gereeld en goed saam met die provinsies, asook munisipale toerisme-instellings. Van my kant, in die Nasionale Raad van Provinsies, sal ek wil sien dat hierdie samewerking uitgebou word, moontlik in die wetsontwerp geformaliseer sal word, groter koördinering sal bring, en dat dit ’n kragtige instrument sal word om toerisme op ’n nuwe pad te plaas. Ons is ook bekommerd oor toutrekkery of tydrowende verwarring tussen sodanige entiteite, soos op die “Eiland” Wes- Kaap, waar eers die Stad Kaapstad en toe die Wes-Kaapse regering ’n aktiewe rol begin speel het wat voorkom of dit verlamming in die hand kan werk.

Daar kan nie gapings in ons bemarkingsnet ontstaan of onnodige oorvleueling geduld word nie. Ons glo die Minister gee leiding en sal ons mettertyd inlig oor watter uitweg gevolg sal word. Die Minister en sy span verstaan dat ons in hierdie Raad ’n besondere plaaslike en provinsiale belangstelling het. Ons kan dalk kyk na ’n toerisme-skou wat om die beurt, of op ’n aflos-grondslag, by provinsies sal aandoen. Die Indaba-skou in Durban is ’n instelling wat internasionaal bekend is, maar dit kan aangevul word met meer streekspesifieke produkte om kleiner ondernemers ook ’n uitstalvenster te bied. (Translation of Afrikaans paragraphs follows.)

[Chairperson, I have a few more ideas with regard to promoting and expanding our industry here in South Africa. The Minister and his team are very much aware that regional tourism is increasingly becoming a very important factor in our industry. We would like to see that our neighbours, and other visitors from our continent, visit us more often. However, we will once again have to look at domestic tourism. Even if it is just for holidays, it is an extremely important component of our tourism landscape and we should also explore how smaller towns and remote areas can benefit more. We have gems in the rural areas in all our provinces, which are waiting to be explored.

I know the Minister and his team are working regularly and effectively with the provinces, as well as municipal institutions. From my side, in the National Council of Provinces, I would like to see this co-operation extended, possibly formulated into the Bill, resulting in better co- ordination, and that this will become a powerful tool, which will propel tourism in a new direction. We are also concerned about the squabbling or time-consuming confusion among such entities, like on the “Island” Western Cape where, first, the City of Cape Town and then the Western Cape government started playing a more active role, which appears to have promoted paralysis.

The development of gaps in our marketing system or unnecessary overlapping shouldn’t be tolerated. We believe that the Minister is providing guidance and will in time inform us as to what option will be followed. The Minister and his team understand that we in this Council have a particular interest both locally and provincially. Maybe we can consider a tourism exhibition which could alternate between the provinces. The Indaba Expo in Durban is an initiative that has become known internationally, but this can be supplemented with more regionally specific products to showcase smaller entrepreneurs.]

If I may, I would like to suggest a reality show, for both television and radio, where awareness amongst our young people will be created about service delivery in the industry. They may compete to prepare and plan products where they can cater, clean, and conduct programmes to treat visitors. This would also serve as an educational medium to raise the bar in South African tourism.

Secondly, I would like to see more young people without jobs being involved in the industry as volunteers. A kind of youth service could be devised where youngsters can work for a stipend to gain skills and experience or even to build up credits in different activities under mentors, something which may finally help them to either find employment or to encourage entrepreneurs to create new products.

Let us join hands and build our country and its economy through tourism. We support this Budget Vote and wish the Minister and his team, as well as Bafana Bafana Godspeed.

Chairperson, I want to conclude by saying that - the member from the Northern Cape has left - it is very easy to come here and say things about certain other things, but if my memory serves me, I recall that Treasury has just given R100 million to the Northern Cape, which is meant for upliftment. So, I don’t know where the member gets his facts, but sometimes when you have difficulty in terms of leadership, and he is talking about cadre deployment, I think the cadre deployment starts in Cope. We don’t know whether Shilowa wants to deploy Lekota or Lekota deploy Shilowa. We support this Budget Vote, and I thank you, Chair.

The MINISTER OF TRADE AND INDUSTRY: Chairperson, I want to thank hon members who contributed to this debate for their thoughtful contributions. I believe that most hon members have understood that we can’t continue to oscillate around whatever the economic cycles deliver to us. For example, when we are in the midst of a bad cycle like we are at the moment, we have unemployment of 25,2%. But when we are at the height of a boom as we were before the recession in 2008, unemployment never got below 22,8%.

I also think that hon members have understood that what we need to do is to bring about structural changes in our economy. We need to place our economy on a structurally different growth path, one which can create much more decent work for our people. It is in that context that I think hon members have also understood what the Industrial Policy Action Plan 2, Ipap 2, has been crafting.

Ipap 2 is essentially contributing to this quest through its focus on value- added activities. As I said in my speech, it was one very important imbalance that we have. Our consumption sectors grew about twice as fast as our production sectors. This is an unsustainable situation that we can’t tolerate any longer.

Hon Winde asked what would have happened to jobs if we hadn’t had the World Cup and so on. I think that’s precisely the point - the main driver of our economic development now is our infrastructure programme. That’s the main driver which is also our main countercyclical response, not just the World Cup, but all the other projects of infrastructure development.

The point is, though, that we have been getting too little industrial development opportunity that flows from that. It is precisely for that reason that we have identified a major change in the procurement regime. Work is under way to try and identify this much more clearly and to come up with clear steps that can be implemented. That is exactly why we want to change the procurement regime. Even from today’s debate I realise that there is now sufficient consensus that the Ipap 2 represents a way forward for us.

The challenge now is to implement it. It is exactly that challenge that I think is important for parliamentary oversight committees and this House. We have a number of things that we do in trying to achieve great implementation: internal monthly oversight meetings; reporting to the cluster; reporting to Cabinet every six months; and so on. We also contribute to the new monitoring and evaluation process in government as well.

What a number of colleagues realised here is that co-ordination is quite critical. That’s co-ordination between the different national departments and agencies that are responsible for parts of the programme, and also co- ordination across the spheres of government. I think this House could pay a lot of attention to that aspect. We will approach that with the spirit of co-operative governance. In that regard, we will work constructively with any province, including those that are under other parties. For example, I don’t know what the issues around the oil and gas centre are, but this is a province-specific programme. However, if there are ways in which we can support that, I’m sure one will find that our department will be forthcoming.

Furthermore, we can engage further in the training lay-off programme which has been raised by MEC Winde. However, I don’t want to engage in the statistics debate around the training lay-off programme because I don’t know all the facts involved. Let me just say that one of the most successful users of that programme was BMW South Africa, which became the first firm to invest again after the recession passed. The training lay-off was a way in which it skilled up its workers for the new investments.

We want to co-operate on the case of Mr Khuzwayo that was mentioned by hon Gamede. How can somebody walk into one small business agency and be told to go to another one or to go and attend another meeting somewhere else. That’s where the collocation, the shared services, and all that, between the different agencies operating in the different spheres of government must take place. We must address that one.

We can work together on the issue of trade and trade promotion, just to give MEC Winde some comfort. Between 2000 and 2008 our trade with the United Kingdom, UK, actually doubled, and then it cut by 40% in 2009. So, doubling it is not such a huge target; but it does require efforts on our part. More importantly, we want to change the structure of that trade. Too much of it is probably products and raw materials. We need to increase the value-added products there. Let’s work together on that.

But, for goodness’ sake, let us not think that the UK and the traditional markets of the North are the only places where we need to get involved. There are plenty of other places like, for example, Africa and our South- South trade. Let’s get actively involved in all that. We’ll work together with you.

We are prepared to work - as you have already indicated - on industrial development zones, IDZs. But let’s understand what the department understands about IDZs. Industrial development zones in our law are areas where you get duty-free entry of components which you use for export of goods; you get the advantages of the concentrated infrastructure; and some other incentives. That’s what an IDZ is. There are a whole lot of other issues like, for example, the governance of IDZs within provinces, municipalities and national government that we need to address, and plenty of other issues around the financing of IDZs. We can work on those; we can work on our studies; and we can identify possibilities.

However, be very honest with communities when you start talking about these things. If you mean IDZs, say IDZs. If you mean export processing zones, those are areas where what you typically do is to suspend the labour law. I was up in Saldanha - on May Day actually – and I didn’t detect any appetite among the people at the rally. I have to see a suspension of the labour law. Let me just say that we also, more often than not, don’t think that the success of the IDZs around the world has been shown to be a real factor. This race for the bottom on labour conditions is not something that South Africa can get involved in in a sustainable manner. That has been established for a very long time. So, I’m afraid you’ll have to win a national election if you want to turn IDZs into export processing zones, EPZs, because we won’t co-operate on that one.

Let me answer just one more point on the auto industry as I’ve got a little bit of time. Yes, it’s true that the components manufacturing industry is much more job intensive. Even the figures that I gave you double the figures. Just to repeat: Of the three investments this year, R9 billion of the investment will sustain 3 500 jobs, but R4 billion investments in components sustaining 20 000 jobs will come of that. Lower investment, more jobs in components! But the relationship between the two is a critical one. If you don’t have an original equipment manufacturer, OEM, base, you might have a components industry; that’s a reality in South Africa.

Indeed, through some of the work that we have done we are deepening the local content. In the last four investments, the percentage of local components is well over 50%. I think it’s nearly 60%. This is because we have a 20% automotive investment scheme, AIS, and a 30% for those who are prepared to go a step further. If you want to qualify for the AIS, you have to create more jobs and buy more locally. That’s exactly what we are trying to do. We are trying to use our tools to push the automotive manufacturers to acquire more components. Some of them are talking about coming together and acquiring a bigger base of common products. That is the sort of work we want to do. Yes, we want to support the electric car and other green-energy-intensive vehicles, not just by one manufacturer, but by all of them. We want to position our motor industry so we are not producing the gas guzzlers of the world. However, we are working with them on a number of projects. So these are the kinds of projects that we want to attract into South Africa. We are also moving in the direction of public transport vehicles. When we invest in public transport vehicles, we must make sure that those are actually manufactured in South Africa.

In conclusion, I think that the National Council of Provinces, NCOP, has got a very critical role to play. We will not be able to make the structural changes in our economy unless we achieve a higher level of co- ordination. That’s for sure, that’s for sure.

I keep telling everybody about what happened in the past. I’m not going to tell you the answer, but I’ll pose the question: Which project was identified to be exactly the same work in Ipap 2 as in Ipap 1? There is one because some government department didn’t do the work. We can’t just do it like that. We have got to hold each other accountable. We are looking for creative oversight that can follow our progress, identify areas where we are not achieving success, and then try to unblock those blockages. That’s the work of oversight and that’s what I want to encourage this House to do. Thank you very much. [Applause.]

The CHAIRPERSON OF THE NCOP: Minister, just for your information, this morning we were rationalising the portfolios of the House Chairs. One of the portfolios we created just this morning is that of co-operative governance to co-ordinate that work and make sure that the work is done in a proper manner. We have all agreed as political parties here. Am I right, Tim? Tim, am I correct? [Laughter.]

The MINISTER OF TOURISM: Chairperson, I would like to respond to four issues. The first one is the issue of the new tourism legislation raised by the hon member Adams. We will table that in Parliament in the third quarter of this year, and then we, obviously, will engage the members of the select committee as well as the portfolio committee.

The second issue is the one raised by the chairperson of the select committee. It is the issue of our inbound markets, our source market for inbound tourism, and, yes, we have experienced good growth for some of the markets in the last year. We can look at some of the increases: from Asia, we had 3,7%; from the African air markets 3,3%, and from the African land markets 5,7%. However, with regard to China and India, two very important future markets, we had a 12,4% increase from China. It’s from a relatively low base, but it is impressive growth in any language. Then, from India, there was a 17,5% increase.

With regard to our traditional markets, I would like to echo the point that Minister Davies made with regard to the traditional markets in terms of trade. They continue to be important markets, but we must take note of the fact that growth from those markets is slowing down. We must refocus and reprioritise, look at new markets, as well, invest in those new markets, and develop those new markets.

Then, with regard to the issue of business tourism that the chairperson also raised, I announced yesterday in the National Assembly that we will start a National Convention Bureau under the auspices of South African Tourism. We will invest in that. Now, that unit, that bureau, will assist companies, provinces, and local municipalities who bid for international events to prepare those bids but also to co-ordinate, as a country, those bids. Very often, we undermine each other, and other countries walk away with those very important international events. That will definitely make our approach more professional in that regard.

I would also like to respond to the issue of redeployment raised by the hon member Sinclair. It was also raised yesterday in the National Assembly by the hon members from the DA. Normally, when this issue is raised, it is raised as redeployment, and very often it is raised with a very subtle race dimension. Yesterday in the National Assembly, it was done, not so subtly, by the DA but actually in a very unfortunate, very distasteful way, with regard to another appointment that I made, a senior appointment in one of our public entities. We dealt with that issue there.

However, let me respond to this issue in a very straightforward manner. When we, as the ANC government, appoint people, and we appoint people with what the opposition thinks is not enough experience, they ask how we can appoint people without experience. On the other hand, when you appoint people with experience, they say it is redeployment, and we are just shifting people around; we are shifting around the deck chairs. I think the opposition should really decide what they want.

I think the hon member Adams dealt very effectively with this insistence from the DA on redeployment, this coming from a party that is on the verge of redeploying their president. [Interjections.] When, in the ANC government, we are looking at appointing people – when we appoint boards, obviously, we are looking at balances, but I’ve always understood that to be the policy of the DA, of Cope, of everybody - of course, you look at language, gender, and all those issues. So, I don’t know why we are criticised on that issue. When we appoint people in executive positions, you always look at who the best man or woman for that position is. That is the only criterion. [Interjections.]

I said yesterday that in my six years in Cabinet, I’ve not had one experience where the President or Cabinet asked a question and put pressure on any Minister to say that in a specific position he or she should appoint somebody who is African or white. This has never happened, not once. It is always on merit. [Interjections.]

The DA is now interjecting. Let me respond to it in this way. When we have to appoint ambassadors, we look very carefully at who we have to appoint. When we were approaching government to appoint the hon former member Gibson, did we say that we didn’t want to appoint this member, because he criticised us too much, very often in a way that went against our grain and our being; or did we say that, possibly, it is good for the country, and he may make a contribution? When we were approached to appoint, and lobby to appoint, Mr Leon, what did we say? We said: Let’s be open about this and maybe he can make a contribution.

And it did not stop there. We were approached to appoint Sheila Camerer, to appoint Sandra Botha, and not once did we raise this issue publicly and say that it is redeployment, that it is unfair. They are all from one background. Not once did this happen, so I honestly think that the opposition should also deal with this issue more fairly and not abuse this House and the National Assembly, attacking people and public servants when they cannot defend themselves. Thank you, Chairperson. [Applause.]

Debate concluded.

                         APPROPRIATION BILL


                           (Policy debate)

Vote No 11 – Public Service and Administration:

The MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: Chairperson of the NCOP, Cabinet colleagues present here, Deputy Minister for the Public Service and Administration, Chairperson of the Select Committee on Co- operative Governance and Traditional Affairs, members of the select committee, Chairperson of the Public Service Commission, hon delegates of the House, the portfolio leadership in the Ministry, our distinguished guests, ladies and gentlemen, avuxeni [greetings].

Thank you very much for affording us an opportunity to address this House on this very important day - the day for the presentation of our Budget Vote for the financial year 2010-11. Under normal circumstances, debates on budgets are financial statements accompanied by activities of the departments. In that narrow sense, we often would like to expect, a presentation to inform the nation, through Parliament, on how we are going to spend the money allocated to us. In this case, we will be talking about the R651 million, of which R380 million is for the Department of Public Service and Administration; R117 million for the Public Administration Leadership and Management Academy, Palama; R133 million for the Public Service Commission, PSC; R19 million for the Public Service Sector Education and Training Authority, PSETA; and R14 million for the Centre for Public Service Innovation, CPSI.

We will do so and give a detailed breakdown of how much of these we will be spending, in each case, on personnel-related activities versus core programmes.

This occasion also presents us space to share with the nation, through this august House, what we are planning to spend our budget on, and as a means to providing information for members of the House to hold us accountable for the things we identify as priorities. This information will also empower the nation to manage their expectations at the minimum around those issues we commit ourselves to doing.

It is also a moment to account for the things we did before this financial year, as well as to project the political state of affairs on issues of governance and administration.

We made commitments when addressing the National Assembly on 21 April this year, to the effect that we will do the following. Through innovation, we will continue to search for ideas that work in order to respond to the demanding Public Service environment. We will give priority attention to the capacity development programme to prepare public servants at entry to the service and continue enhancing their competency in dealing with their day-to-day programmes. We maintain our unwavering stance on the continued fight against corruption. We will strengthen our efforts to maintain sound labour relations. We will conclude the debate on the single Public Service. We will stabilise the senior management service, SMS, in managing issues of recruitment and work contracts. We will further redefine the architecture of our Public Service to respond to the expectation of a developmental Public Service. We will soon finalise the discussion on the corporate forms of both the Public Service Commission, PSC, and the Public Administration Leadership and Management Academy, commonly referred to as Palama.

We are gathered here today still in a mood of Freedom Day celebrations, remembering a peaceful breakthrough to democracy in 1994. As we celebrate, it is critical that we remind each other that the democratic South Africa born 16 years ago found her existence in compliance with the principles of nonracialism, nonsexism, democracy and unity.

South Africans should be made aware that our public administration is responsive to these characteristic features of our country - characteristics of nonracialism, nonsexism, democracy and unity. They transcend our public administration.

We pronounced, as enshrined in our Constitution, that South Africa belongs to all who live in it, united in our diversity, and we made it a policy position that our staffing norms should reflect the demographic representation according to the racial mix of our people in the country and in the respective provinces.

We also introduced a policy of affirmative action so as to redress the historical racial imbalance in affording employment and promotion opportunities to previously disadvantaged racial groups in the country. This year, we will communicate the state of compliance with these policies by all our government departments nationally and in the provinces.

Our public administration subscribes to the principle of nonsexism. In this regard, we developed a policy and passed legislation to ensure employment equity in the workplace in general, and in the Public Service in particular. We want to acknowledge on this matter that our compliance rate leaves room for improvement. In dealing with this aspect and also the issue of disability management, the Department of Public Service and Administration launched a guiding document for all government departments in March last year. That was a contribution to such interventions at the deployment of job access strategy.

This document prescribes, among other things, the following steps – and we need to stress these steps, for these are the steps that hon members present here, when doing oversight work, may check government departments on as tools that can be used to deal with issues of compliance with the employment equity requirements: ensure that the human resources, HR, plans incorporate employment equity; set departmental numeric targets according to national targets; create an enabling environment; develop implementation plans; ensure continuous monitoring and evaluation of the plans; and consult with relevant stakeholders as well as give progress reports on implementation.

This year, we will step up awareness campaigns on the provision of this document, so that, from next year on, we will insist on compliance. Our public administration is also founded on the principle of democracy. We created the Public Service Co-ordinating Bargaining Council, PSCBC, and the SA Local Government Bargaining Council, SALGBC, as vehicles to ensure that workplace democracy takes place through organised collective bargaining processes.

The principle of unity in our Public Service finds expression in the historical transformation journey of our Public Service, from fragmentation to one administration based on the following founding values: a high standard of professional ethics; efficient, economic and effective use of resources; development-oriented public service; providing service impartially, fairly, equitably and without bias; responsiveness; accountability; transparency; good human resource management; and demographic representation.

The PSC develops themes every year on the basis of which they analyse government’s compliance with these values. As you remember, every year, the PSC publishes a report on the state of the Public Service which is based on compliance with these founding values. This year’s theme is Innovation in Service Delivery.

We are aware at this point that there is general inaction on the recommendations of the PSC, and we took a decision that, with immediate effect, our Deputy Minister will follow up on noncompliance with these recommendations. We are saying on this point that when the PSC investigates an issue, and then writes a report, having made observations and findings on the performance of departments, those recommendations need to be implemented. Amongst other things, our Deputy Minister will make sure that that happens.

The rate at which we fill vacancies in the various departments is cause for concern. If we regard these vacancies as opportunities for employment, we will agree that failure to fill them is, in fact, depriving employable South Africans of the opportunity to enter the job market and compromises the state’s capacity to deliver on its promises.

During this year, we will give a status report on each department’s performance profile in this regard, after which we will facilitate that action be taken to insist on compliance. The other problem is delays in the filling of vacancies, resulting in so many people in acting positions in the Public Service. We are weighing options on this matter and we will soon experiment with one of them.

One possibility in this case is that we may prescribe that we centralise the management of the appointment of the executive components of the departments wherein we would further regulate that acting appointments may only be entertained for advertised posts. We may have to put a requirement that each advertisement should reflect a date of the interviews.

We are deliberating in this important House today during a time when we have witnessed and continue to witness confrontations in areas where there are protests by people demanding, among other things, accelerated service delivery. I know that our reactions as individuals may differ as to how we interpret it, but I know that we will all agree that we need a solution to these challenges. Yes, we need a solution, and that will come if we all work together to confront the situation.

Last year, addressing this House, we committed ourselves to reviewing the implementation of the Batho Pele principles. We are happy to announce that we have since relaunched the programme, focusing more on impact assessment. We allocated the eight principles of the policy each to a province, as follows: Eastern Cape focuses on service delivery; Free State on openness and transparency; Gauteng on value for money; KwaZulu-Natal on information; Limpopo on courtesy; Northern Cape on accessibility; Western Cape on redress; North West on consultation and Mpumalanga on all eight principles.

At the end of the financial year, we will account on the roll-out of this impact assessment exercise, so that this very important policy on the transformation of service delivery will guide all steps of the activities of our public servants to ensure quality and access to services.

In this year of outcomes-based performance management, we committed ourselves to doing things differently. One of the things that we will do differently relates to how we run the State Information Technology Agency, Sita, business. There are three questions that are part of the key issues that we will give attention to during this year, and these are: the review of the Sita pricing model; the review of and compliance with tightening the Sita procurement prescripts; and the improvement of the quality of service for the services of the Sita.

This debate takes place at a time when the country is going through the process of accounting to the heads of state of the African Union, AU, that have acceded to the voluntary instrument of the African Peer Review Mechanism, APRM. We are preparing our second report as a country, which is due in July this year. The APRM programme, apart from dealing with issues of compliance with the voluntary instrument, gives us an opportunity to also mirror ourselves against our own performance on those issues that we are called upon to respond to.

In the report, we should talk about our compliance with questions in the following thematic areas: democracy and good governance; socioeconomic development; corporate services; and economic governance. Of course, there are issues that were identified as crosscutting and to which we should pay attention and report on. In order to deal with these issues, we embarked on provincial visits and organised consultative sessions to reflect on them as follows. In the Eastern Cape we looked at unblocking the service delivery challenges; in the Free State land reform management; in Gauteng stakeholder participation; in KwaZulu-Natal HIV/Aids; in Limpopo inequality and poverty eradication; in Mpumalanga fighting corruption; in the Northern Cape violence against children; in North West racial harmony; and in the Western Cape diversity management.

As you recall, Parliament played an important role during the time of the country’s self-assessment process and the writing of the country’s review report. It will be a worthy contribution if this institution of public representatives can also participate in the process that is now on. My office is interacting with the leadership of Parliament in this regard, but importantly, members of this House may use the issues in the APRM report in doing their oversight work.

In conclusion, and as we are due and ready for the 2010 Fifa soccer kick- off next month, allow me to indicate that it will not all be holidays for all public servants, as we made arrangements to make sure that the people and the guests in the country receive minimum service so that government will not be seen to be on leave. Government will be active as we are entertaining, welcoming and showcasing our talents to the world.

Once more, Chairperson, I want to thank you very much for providing this opportunity for us to present the Budget Vote for the Ministry for the Public Service and Administration. “Hi khensile” [Thank you]. [Applause.]

Mr M H MOKGOBI: Chairperson, hon Minister Masenyane Baloyi, hon House, distinguished guests, today we have before us a policy debate on the Budget Vote for the Public Service and Administration that the committee supports.

For any democratic state, its mission, vision, plans and hopes are only realised if there is strong and effective public administration that can drive the policy objectives of the governing party. For a developmental state such as ours, the examination of the effectiveness and the efficiency of the state are central, and the developmental objective of the state depends on this effectiveness and efficiency.

This has been declared the year of action by our President in his state of the nation address and the governing party further declared it to be the year of working together to speed up effective service delivery to the people.

South Africa is a developmental state, which is a conscious and deliberate social construct which must lead the process of overhauling both the economic as well as the political legacy of apartheid. In the year 1987, on 8 January, the late ANC President Oliver Tambo said in the ANC NEC statement:

We must proceed from the position that our task is to win a revolution.

Political revolutions are about the capture of state power and its use to advance the objectives of fundamental social transformation. This task must be carried out consciously and intentionally by the revolutionary forces to bring about profound change in favour of the social classes and strata that have gained power.

Without the victory of the revolution, revolutionary changes are not
possible. The state is a vital feature in that effort to bring about
those revolutionary changes because a new society cannot be built within
the existing framework.

Five years later we began negotiations at the Convention for a Democratic South Africa in 1991. The African National Congress put forward what it envisaged as a united, democratic, nonracial, nonsexist South Africa: a unitary state where a bill of rights guarantees fundamental rights and freedoms for all on an equal basis; where people live in an open and tolerant society; where organs of governments are representative, competent, and fair in their functioning, and where opportunities are progressively and rapidly expanded to ensure that all may live under conditions of dignity and equality.

South Africa’s position as a developmental state is apparent in the way in which Public Service and public policies are made and implemented in the country, as well as the boldly stated goal to eradicate poverty through active state leadership and intervention to achieve the objectives of democracy and economic growth, development and redistribution. This then informs the manner in which the state and the Public Service must be structured and organised. Then the whole question of transformation of the state comes into play.

Chairperson, when we speak of a united South Africa we have in mind in the first place the territorial unity and constitutional integrity of our country. South Africa must be seen and recognised by international communities as a single nonfragmented entity with a single citizenship, a nation and a common loyalty, not a quasi-federal feature which some opposing forces talk about.

There is a need for a strong and effective central government to handle national tasks, a strong and effective provincial government to deal with the task of the regions, and a strong and effective local government to ensure active local involvement in the handling of local matters. The central government has the responsibility for ensuring that there is a common framework of policy standards, norms and practices applicable to the whole country and for seeing to it that all areas of the country have equitable access to national resources.

Chairperson, all previous national democratic revolutions, especially in Africa, have been political revolutions. Major democratic governments, however, seldom destroyed the old machinery of the state. More often they took over the imperialist-colonial institutions, parliamentary procedures, multiparty systems, courts, bodies of law, army and the police organisations and the bureaucratic administration. They appointed their own nationals as soon as possible to the positions formerly held by the expatriates of the colonising state.

When the national liberation movements hereto achieved independence they inherited the old colonial system and went on working along the old lines. They did not destroy the old state machinery to build a new one. They took over government and ministerial houses and other privileges. They became a class of bureaucrats. The tendency in many African countries has been to maintain all economic as well as political systems. There has been continuity and not revolution.

However, because the South African national democratic revolution is more than the general type of political revolution, it has the responsibility to do more than merely work along the old lines. Our revolution in South Africa must destroy the old state machinery to build a new one.

This is the central message to all who work in the Public Service and Administration department. Chairperson, the process of building a new Public Service cadre forms part of the mega task for creating a developmental state. There are those placed in the positions of responsibility who do nothing, either through incapacity or unwillingness to address the concerns of the people they are meant to serve. Where people are found to be incapable of performing the task assigned to them, we must work with speed to either capacitate such people or replace them with more capable ones. To be a Public Service cadre means service to the people and a caring attitude in dealing with citizens.

The ANC is committed to transforming the state in a manner that benefits our people. There is no room for using the resources of the state for self- enrichment and acting from narrow selfish interests. Selfishness is alien to the values of the ANC. We expect the leading Public Service cadre to earnestly listen to the people’s concern, truthfully reflect their wishes, sincerely help address their hardship and do more to speed up effective service as echoed by the Minister here.

Chairperson, the ANC, working together with our allies, will engage the Public Service trade unions and clarify our respective roles in building a new Public Service cadre for a democratic developmental state. Revolutionary trade unions must be at the centre of driving quality service to the people. The ANC agrees with the concept of a transformative trade union committed to the ongoing transformation of the Public Service, its structures, systems, ethos, and the way we do things.

A transformative trade union is one which is broad in its thinking, politically motivated, and defends the interests of its members within the context of a national democratic society which we are building. It is the antithesis of a typical English craft union that only looks after the narrow economic interests of its members to the exclusion of broad political and social responsibilities within the sector in which it operates. The ANC believes that the road of transformation that still lies ahead requires transformative trade unions which are capable of building a new Public Service cadre.

As parliamentarians, when assessing any Budget Vote, we have to ask ourselves the questions: What is expected from this institution? In this case we need to ask the question as to how the Public Service will comply with the constitutional requirements so as to make it possible for oversight to be done in such a way that it’s able to measure the progress in terms of the budget that has been allocated to it. We must also ask on behalf of the department whether the national fiscus has sufficiently allocated resources to the department to meet its constitutional obligations.

The main mandate of the Public Service in terms of the Constitution is to transform the Public Service; oversee changes to the structures of the Public Service; establish norms and standards for, among others, human resource development; issue directives and regulations; formulate a national anticorruption strategy and exercise oversight over the State Information Technology Agency.

In carrying out this mandate, the Ministry for the Public Service and Administration has developed a strategic plan for the medium-term period as briefed to the committee. From 2010 to 2014 it identified 10 strategic outputs which have been further broken down into projects with related matters.

In conclusion, this year’s Budget Vote must be assessed within that background and we hope that the Ministry will brief the committee quarterly while other things that are left will be addressed to you. We support the budget.

Mr J M BEKKER: Chairman, hon Minister, hon Deputy Minister, hon colleagues, and hon visitors. It is a great honour to be part of today’s debate on the Budget Vote for Public Service and Administration. I believe that this is the heart of the government. You can have policies, systems, etc, but they must be implemented and executed at a high standard of efficiency.

Ons gaan binne dae die grootste sportgebeurtenis in die wêreld aanbied. Besoekers van oor die hele wêreld gaan ons land besoek en hulle gaan menings vorm oor ons effektiwiteit en vermoë om die land te bestuur. Wat is die boodskap wat hulle met hulle gaan saamneem? Gaan dit positief of negatief wees? Gaan dit toerisme en handel in ons land bevoordeel of benadeel?

As ons kyk na die begroting en die totale beplanning, is dit goed, maar dit word nie geïmplementeer nie. Ek het die waarnemende direkteur-generaal in ons komitee gekomplimenteer met die wyse waarop sy dit voorgestel het, maar dit word nie uitgevoer nie. Die norme en waardes wat gestel word, word nie uitgevoer nie.

Onbekwame persone, met geen of baie swak opleiding, word in belangrike poste aangestel. Salarisse van top amptenare vergelyk goed en is in baie gevalle selfs beter as in die private sektor, maar die sin vir dissipline en verantwoordelikheid ontbreek, want daar is geen risiko aan die pos gekoppel dat die persoon moet presteer nie. Korrupsie gedy in al die staatsdepartemente en veral staatsinstellings. Baie min of niks word gedoen om die skuldiges te ontmasker en te straf nie.

So, byvoorbeeld, kyk ons na die munisipaliteite. Munisipale bestuurders en artikel 56-aanstellings beweeg van een raad na die volgende en laat ’n spoor van onbevoegdheid en korrupsie agter. So gebeur dit ook met die staatsdiensposte. Niemand behoort aangestel te word wat ’n rekord van swak administrasie of korrupsie het nie.

Daar bestaan ’n simpatie met die oortreders wat ongekend is. Hulle word beskou as verdruktes en verontregtes en moet gedurig geleentheid gegun word om met hul optrede voort te gaan. Hierdie oortreders wat so beskerm word, is die rede vir al ons probleme. Skuldiges moet ontmasker, vervolg en gestraf word. Dit is nie die gemeenskap se skuld dat hulle korrup en oneffektief is nie. Hoekom geniet hulle voorkeurbehandeling? Wat maak hulle anders as ons gewone burgers?

’n Effektiewe en doeltreffende staatsdiens se waarde is ongekend. Die nodige stelsels en fondse bestaan in ons land maar, soos reeds genoem, lê die fout by die toepassing.

Die President het belowe dat Ministers en alle staatsdiensamptenare prestasiekontrakte gaan teken. Die vraag is: Hoeveel is daar al geteken? Om te teken het geen waarde as dit nie toegepas word nie. Ek verwys weer na munisipaliteite. Ons het al by munisipaliteite gesien dat hierdie kontrakte se waarde nul is. Ek weet van geen munisipale of artikel 56-bestuurder wat nie sy 100% prestasiebonus kry nie. Hierdie prestasiemeting in die staatsdiens moet volgens vasgestelde prosedures geskied en moenie gebaseer wees op of ek van jou hou, of dat jy doen wat ek wil hê nie.

Op hierdie stadium word oneffektiwiteit en korrupsie nie gepenaliseer nie. As ons na staatsinstellings soos die Landbank, SAUK, SAL en Eskom kyk, dan het elkeen ’n geskiedenis van ondoeltreffendheid en gevalle van korrupsie. Groot bedrae is uitbetaal om van amptenare ontslae te raak. Is dit reg dat die belastingbetalers vir sulke foute moet betaal? Hoekom geniet hierdie skuldiges soveel simpatie en voorkeurbehandeling?

In die strewe om diens te lewer moet daar gesoek word na maniere om amptenare met integriteit te werf. Hoeveel poste word deur waarnemende persone gevul? Is die werwingsbeleid en aanstellingsprosedure ingestel? Wat bepaal ’n aanstelling? Moet daar nie meer gekyk word na die beginsel van “fit for purpose” nie?

As ons kyk na die Staatsdienskommissie, wat ’n grondwetlike instelling is en waarvan vereis word dat hy onpartydig en onafhanklik moet wees, dan kom daar twyfel in jou gemoed nou dat daar nie meer ’n eie Begrotingspos is nie, maar dat dit ’n funksie van die departement geword het. Hoe kan jy skeidsregter oor jouself wees?

Enkelstaatsdiens is ’n onderwerp wat genoem word, om baie probleme op te los. As dit gebeur beweeg ons heeltemal weg van ons mense aan wie diens gelewer moet word en gaan beheer oor doeltreffendheid en effektiwiteit nog swakker wees.

Ek wil afsluit met ’n beroep op die agb President en sy Kabinet. Pas die beginsels van Batho Pele streng toe. Kom ons sien die hele land se bevolking raak en probeer aan hulle die bes moontlike diens te lewer, in plaas van ’n paar kamerade wat beloon moet word omdat hulle goeie partygenote is. Ek dank u. (Translation of Afrikaans paragraphs follows.)

[In a few days we are going to host the world’s biggest sporting event. Visitors from all over the world will come to our country and form an opinion on our competence and ability to govern the country. What message will they be taking back with them? Will it be positive or negative? Will it promote or prejudice tourism and trade in our country?

When we look at the budget and its overall planning, it is good, but it is not being implemented. In our committee I complimented the acting director- general on the way in which she presented it, but these plans are not being carried through. The norms and values that have been set are not being executed.

Incompetent persons, with little or very poor training, are appointed to important positions. The salaries of top officials compare well to and often even exceed those in the private sector, but the sense of discipline and responsibility is lacking because there is no risk linked to poor performance in the post by the incumbent. Corruption is thriving in all of the state departments and in particular in public institutions. Little or nothing is being done to expose the culprits and punish them.

Take municipalities, for instance. Municipal managers and section 56 appointees move from one council to the next, leaving behind a trail of incompetence and corruption. The same happens with Public Service posts. People with a record of poor administration or corruption should not be appointed.

The sympathy that prevails with these transgressors is unheard of. They are regarded as oppressed and aggrieved people who must constantly be granted a chance to continue with their actions. These transgressors, who are being protected in this manner, are the reason for all our problems. The guilty ones should be exposed, prosecuted and punished. It is not the community’s fault that they are corrupt and incompetent. Why do they enjoy preferential treatment? What makes them different from the average citizen?

The value of an effective and efficient Public Service is unparalleled. In our country the systems and funding required are all in place but, as already mentioned, the difficulty lies with the implementation.

The President has promised that all Ministers and public servants will be signing performance contracts. The question is: How many have been signed so far? To have signed is of no value if there is no enforcement. Again I am referring to municipalities. We have already seen that these contracts are of no value in municipalities. I know of no municipal or section 56 manager who does not receive his 100% performance bonus. Such performance measurement in the Public Service should take place according to set procedures and should not be based on whether I like you or whether you do what I want you to do.

At this stage there are no penalties for incompetence and corruption. Looking at state institutions such as the Land Bank, SABC, SAA and Eskom, each one has a history of incompetence and corruption. Large amounts of money have been paid to get rid of officials. Is it right that the taxpayers should be paying for such mistakes? Why do these guilty parties enjoy so much sympathy and preferential treatment? In striving to deliver a service, ways should be found of recruiting officials with integrity. How many posts are filled by acting persons? Are the recruitment and appointment procedures in place? How are appointments determined? Shouldn’t there be more emphasis on the principle of being fit for purpose?

Looking at the Public Service Commission, which is a constitutional body that is required to be impartial and independent, doubt starts to arise now that it no longer has its own Budget Vote and has instead become a function of the department. How can you police yourself?

The subject of a single Public Service has been mentioned as a way of solving many problems. If this should happen, we will distance ourselves from those people to whom these services should be rendered, and then control over competence and efficiency will decline even more.

I want to conclude with an appeal to the hon President and his Cabinet. Apply the principles of Batho Pele strictly. Let’s take note of the total population of the country and attempt to render the best possible service to them, instead of to a few comrades who have to be rewarded for being such good party members. I thank you.]

Mr A G MATILA: Deputy Chairperson, Minister, Deputy Minister, hon members, ladies and gentlemen, what ties us together is our shared purpose and responsibility to transform the South African Public Service into a formidable, effective vehicle capable of supporting the socioeconomic development that South Africa and its people need and deserve; a public administration capable of ensuring human safety and security to each other and to everyone; ensuring the dignified existence of all our people within a human rights framework; and working in a trajectory of perpetual improvement and elevation for all, but particularly providing support for the poor in order to close the gap and erase the sharp disparities that mark the livelihoods of the privileged and the underprivileged.

The department’s mandate has evolved over the years from developing policy towards implementing and facilitating service delivery improvement through support interventions, information and communications technology, ICT, and community development workers. The department also participates and plays a critical role in various public administration and management structures in the Southern African Development Community, SADC, region and the rest of the world.

The government’s five major priorities for the current electoral period include education, health, land reform and rural development, creation of decent work and the fight against crime. Informed by these priorities the objectives underpinning the department’s strategic focus include developing and strengthening the capacity of the state through efficient, effective and sustainable systems; strengthening the public sector through institutional reforms; promoting good governance in the public sector and building an effective and caring government; developing the human resource capacity of the public sector; and pursuing strategic international partnerships to consolidate South Africa’s regional and international agenda.

During this financial year, as the select committee, we will enhance our oversight function in order to ensure that the Department of Public Service and Administration, DPSA, implements these strategic priorities, and in return contributes directly or indirectly towards the achievement of government’s objectives of equality, improving the quality of education and health as well as other social services, halving unemployment by 2014, and stepping up the fight against crime.

As the select committee we believe that in order for the department to deliver on these priorities, it needs to collaborate with other government departments and institutions to establish partnerships with civil society.

The department has been allocated a total budget of R651,4 million during the current financial year. Over the Medium-Term Expenditure Framework, MTEF, period, spending is expected to grow to R684,1 million at an average annual rate of 0,1%.

During this financial year, the department needs to focus more on outcomes as it spends its 2010-11 budget. This requires a shift from a focus on inputs, that is budgets, personnel and equipment, to managing outcomes. These will relate to the strategic focus areas of the department aligned with this year’s budget in order to enhance service delivery through systematic information and knowledge management and collaboration between institutions within and across spheres of government as well as between those spheres and private and development sectors. The ANC during its 52nd national congress in Polokwane resolved that, as the ANC, we should continue to lead and drive the process of the unification of administration in the three spheres of government in the single Public Service.

Uppermost on government’s agenda for the ongoing social and economic upliftment and transformation of our society is improvement in the delivery of basic and other services to the people of South Africa.

Currently delivery is hampered by weaknesses in numerous areas, including, amongst others, national frameworks and policies that do not extend to local government in the areas of service delivery and public administration, management and marked differences in remuneration and conditions of service in the Public Service and local government, which makes mobility and transfer of functions difficult.

The single Public Service is based on the principle that the institutions across government - whether local, provincial or national - that comprise the machinery of the state have to work together to effectively fulfil the needs of the South African society. This means that their structures must be aligned and structured in such a way that there are no barriers to co- operation.

The single Public Service initiative seeks to ensure greater alignment across the three spheres of government in the areas of human resource management and development, service delivery, information and communications technology, anticorruption and the design of framework legislation.

The state is constitutionally bound to ensure that services of a high quality are delivered to the citizens at their convenience. This means that government must find the most effective methods and channels to deliver these services. It calls for a dynamic, modern delivery model and a system that clusters these services to the convenience of the citizen through a “single window” - a place where a person can receive a range of government services, be this a physical structure or by electronic means.

Rather than undermine the distinctiveness of local government as a sphere, the single Public Service will improve the manner in which the spheres interrelate and co-operate with each other to ensure enhanced delivery of services. The Intergovernmental Relations Framework Act of 2005 will assist by creating the environment for formalising intergovernmental forums and regulating dispute resolutions.

In 2003 the community development workers, CDWs, were established as a new cadre of public servants. Their unique contribution was to span the divides between different spheres of government and between different line departments that logically are interconnected but are operationally divided. They make it easier for citizens to negotiate the complex maze of government departments in order to access public services, particularly social services and economic opportunities.

President Zuma has further reminded all of us that through working with the people and supported by our public servants, we will build a developmental state, improve public services and strengthen democratic institutions. Community development workers, CDWs, are therefore the critical building blocks in the actualisation of the developmental state.

Policy for the community development workers’ programme is at an advanced stage, with consultations finalised in eight provinces. The policy development process is expected to be completed by April 2010. Therefore, hon Minister, during this financial year, as this House, we want to see the CDWs programme strengthened in order to facilitate access to government services. We support the Budget Vote. The DEPUTY MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: House Chairperson, hon Minister for the Public Service and Administration, hon members of the National Council of Provinces, hon Chairperson and members of the select committee, distinguished guests and fellow South Africans, House Chairperson, I was away from the office and I asked my staff to give me a quotation that I could begin my speech with. I said to them that I’d like to begin the speech with a quotation from Lenin. I received the quotation which says: “We all live in a yellow submarine”. They misunderstood me and gave me a quotation from John Lennon when I actually meant Vladimir Lenin!

But, I came across a quote from Vladimir Lenin and he has the following to say:

Victory will belong only to those who have faith in the people, those who are immersed in the life-giving spring of popular creativity.

But, I thought I should also share with you, Chairperson, something I came across from Mahatma Gandhi and it applies to all of us here today, and it says: “Whatever you do in life will be insignificant, but it is very important that you do it.”

Madam Chairperson, in the old Natal, the arrival of Indians in 1860 marked the beginning of an organised scheme whereby approximately 150 000 Indians arrived to seek gainful employment. While many worked in the sugar fields, others worked on the wattle and tea plantations and in the coal mines. Some came as domestic servants, waiters and house servants and were able to command a respectable salary of just about 20 shillings per month.

These Indians coming from India were to suffer horrific and atrocious experiences at the hands of many minority European leaders at the time. However, as bad as the treatment was, these Indians persevered and made South Africa their home against all odds. For the next 134 years, these very same Indians were to be exposed to some of the most degrading and dehumanising forms of treatment. South Africa, as it was then, was certainly not welcoming to these compatriots from India and the subcontinent. It was only years and years after that and more so after the democratic breakthrough of 1994 that ushered in a prosperous dispensation that South Africa truly became a home for all South Africans.

Our country has traversed a long journey to where we are today. Whilst we still carry with us the painful imprints of our past coming from our different backgrounds, today we are a nation and a peace-loving people, steadfastly committed to constructing a new future based on unity, equality, respect for each other and tolerance for others’ rights and our national diversity.

The Republic of South Africa, born 16 years ago, is a firm negation of the racist chauvinism that was the order of the day back then; and the resolute affirmation of the historic vision that South Africa, indeed, belongs to all who live in it, black and white.

The Ministry for the Public Service and Administration, which has the honour to present its Budget Vote to you today, is part of this vision, and determines that we shall do all we can to affirm all our people’s yearnings to belong to a common nation, share a common identity and toil towards a common future.

We remain resolute in our commitment to never allow public administrations ever again to be used in schemes to divide and serve only segments of our South African people, but certainly to be part of the broad movement to affirm our people’s common and shared values and beliefs.

Madam Chair, it is an honour and a privilege to have been placed in this department that is so central to the question of service delivery for our nation. It is also a huge responsibility that is never more keenly felt than when service delivery protest erupts, and ordinary people voice their displeasure with the lack of service delivery.

My role is to support the Minister as he leads our collective effort to achieve the objective as outlined in our legislation. In support of that role, there are a few priorities that I wish to emphasise here today in support of the Budget Vote of the department: Firstly, there is the need for us to build the capacity of the state to deliver on our promises of a better life for all.

Secondly, we have to review the governance arrangements within the three spheres of government which align themselves effectively and efficiently to deliver on our mandate to the people.

Thirdly, there is the need to better harness the power of technology to support our efforts to modernise the way we do our business as government.

The ANC was elected in 2009 on the back of the Together We Can Do More campaign.

There is increasing frustration at the general slow pace of delivery, poor quality, high costs and lack of speedy responsiveness of government to the challenges of our citizens. This frustration is felt across the spectrum of South African society, particularly amongst the urban and rural poor. Whatever the reasons, be it housing, sanitation, unemployment or desperation, service delivery protests are symptomatic of the challenges that we face as a nation and as government.

The South African public currently lacks a well-performing Public Service. Only 58% of our population is satisfied with the services delivered. Historically, satisfaction rates have been as high as 81% in 2004; and since then there has been a steady decline in public opinion towards the current satisfaction levels of 58% in 2009.

Indeed, there are several factors, which many of you will be familiar with, that account for this perception by the public. Some of you have mentioned the persistent underperformance by management in the Public Service; dysfunctional and ineffective back office systems; and slow bureaucratic decision-making processes that are amongst many other reasons that are offered for to why this service is perceived as being poor.

All of these, ladies and gentlemen, are undermining the capacity of the South African state and in turn have reduced its capacity to be an effective instrument of service to the people. But the key question must be: What are we going to do to fix these problems?

In his state of the nation address, President Zuma reaffirmed that the South African government’s commitment to the vision of an inclusive society is that South Africa belongs to the entire nation, united in its diversity and the people working together for the greater good and benefit of all. The South African Constitution emphasises that the priority of the state is to advance human rights and freedom within a nonracial and nonsexist framework in which the supremacy of the Constitution and the rule of law must prevail.

Guided by the principle of the Freedom Charter, as you all have enunciated here today, South Africa certainly belongs to all who live in it, with the promotion of a democratic government based on the will of the people. Government committed itself to build a developmental state that will address the socioeconomic challenges in the eradication of poverty and the need to create this better life for all.

The developmental state is thus an effort by the government to build a nation; to eradicate poverty; promote literacy; and provide health and decent education as well as grow the economy in a manner that must ensure that people are not left out, but are certainly fully participating and are included as part of the solution to the problems.

In declaring this year, 2010, the year of action, our President reminds us that there is no time for schism, no time for excuses and no time for complacency and the lackadaisical delivery of services. We are further reminded that there shall also be no time to claim easy victories and tell any lies.

Ladies and gentlemen, South Africa’s next revolution must, therefore, be to get the democratic state working more effectively and efficiently.

An HON MEMBER: Find the DA offices. Do you mean to join the DA? The DEPUTY MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: As the leader of transforming the state of public service and administration, the Ministry for the Public Service and Administration is responsible for providing the governance framework for an efficient and effective Public Service through, amongst other things, ensuring that its people, processes and technologies are aligned.

As the custodian of human resources in the civil service, the Department of Public Service and Administration, DPSA, creates the framework for recruiting, retaining and training the people who are central to the high- performance Public Service that we require. Therefore, there would be no need for me to join the DA.

To effect this outcome, the Ministry for the Public Service and Administration has a number of levers at its disposal. We have several directives that deal with specific people’s issues to whom we are harnessing our strategy to improve and to raise the ethos of the Public Service.

As our mandate is to transform the Public Service, we are working towards inculcating the principle of a customer-focused and citizen-centric service to the people in all public servants.

The aim is to ensure that all citizens in our country receive quality government service at every service point. In this regard, I have just completed a very interesting four-day public service and community engagement outreach programme, and the Minister is about to implement another of these initiatives in one of the outer-lying provinces in the country.

The main focus of our programme is to ascertain the level of compliance with service delivery standards which are central to the Batho Pele principle. We engage in these programmes in people’s forums to hear the way people really perceive the quality of public service and make interventions to raise the quality of service.

I must, however, indicate that, in order to achieve this, we need public servants who have values, are principledriven and also customer focused as well as having the mind-set of being people-centred.

Our challenge, ladies and gentlemen, is to make the entire Public Service share our vision and work diligently to speed up service delivery. Our critical partners such as trade unions and the public sector will certainly assist us to enhance the effectiveness of a developmental state. This sentiment, we are happy to record, was endorsed in the declaration that was adopted during the public service sector summit held earlier this year. In this context, it is critical that we enhance the speedy access to government services.

The community development workers programme, CDWP, was created in 2003 as the new usher of multiskilled public servants whose role would be to ensure that government goes to the people to offer services where they live, especially the urban and rural poor.

It is, however, necessary to mention that, until now, the community development programme has been implemented through guiding documents. As a consequence of this, a great variety exists in the implementation process of the CDWP nationally.

Our department currently has been engaged in a review process of the community development workers programme, driving towards the establishment of a consistent policy framework that will guide implementation across the provinces throughout the country. We are also engaged in reviewing the community development programme so that it can play a more dynamic role in the war against poverty. Describing the CDWP as having foot soldiers in the war against poverty, being the eyes and ears of the people and the defenders of the poor will certainly become the mission call of the realigned CDWP. Public Service institutions are critical and central to the implementation of our programme of action in the DPSA. Allow me to mention just some of these institutions. Is my time up, Madam Chairperson? [Interjections.] Madam Chair, thank you very much.

The institutions I wanted to speak about, if I had time, would have been the Government Employees Medical Scheme, Gems; and the Public Service Commission. As you heard the Minister say, he has entrusted me with the responsibility to ensure that there is compliance in the work of the Public Service Commission. I must tell you that it is a commitment we give this House that we will certainly attend to that in particular. We will certainly do our level best to ensure that the PSETA meets the requirements of improving skills in the Public Service.

In conclusion, we are happy to record that Gems is an institution that takes care of the medical services of public servants. It is a dynamic institution and organisation that earns R12 billion in a year. We are happy to say that it is proceeding very well. Thank you very much, Madam Chair, for the extra minute. [Applause.]

UMntwana M M M ZULU: Sihlalo, mhlonishwa Ngqongqoshe nePhini lakho, mhlonishwa Ngqongqoshe ngithi angisho ukuthi uhulumeni wakho ngimbona ekuthatha njengento ebalulekile ukuthi kuyiswe izidingo zabantu ebantwini.

Lo mnyango wakho kudingeka ukuthi ufinyelelise izidingo kubantu ngokukhulu ukushesha. Ngiyakubonga ukuthi kubekhona nokunye okwenzekayo kanye nemali efakiwe eziNdabeni zabaSebenzi ukuze kube khona izinto ezibhekene nabasebenzi uqobo. Kodwa engakuxwayisa ngakho Ngqongqoshe ngelinye ilanga ngikule Ndlu ngathi asizinakekele kahle iziKhungo eziku-Chapter 9, ngathi kufuneka uphose amehlo ngoba kukhona abantu abasebenza kahle, kanti futhi izinkinga zabasebenzi zikhona kule minyango.

Kodwa-ke futhi kukhona abantu abenza lezi zikhungo zibe yizinto zemizi yabo, ngoba ngokomthethosisekelo bayazi ukuthi umnyango wakho awukwazi ukuwabheka noma ukuwaphenya ngoba bona baphendula kwiNdlu yesiShayamthetho kaZwelonke. Sengathi leyonto kufuneka ibhekisiswe kahle ngoba iyasikhathaza thina njengabantu abavotayo kuleli lizwe. Okunye okufanele ukubheke ukuthi ungathathi amandla anikezwe uMnyango wakho uwadlulisele kwabanye abantu. UMnyango wakho unikezwe umsebenzi omkhulu wokuthi ubhekelele abasebenzi nokuqashwa kwabantu.

Ozakwethu bathinte nodaba lwakomasipala - ngoba yizimali zabakhokhi bentela eziya khona, kufanele baqikelele ukuthi abantu abaqashwa khona bafanelekile yini ukwenza lowo msebenzi. Uma ungeke ubuveze ubuholi kulokho mhlonishwa Ngqongqoshe ngiyacabanga ukuthi iNingizimu Afrika iyobe isefini elimnyama, iyongena ehlathini okwesibili, ngoba labo masipala yibona abasondelene kakhulu nabantu ngendlela okuyiyonayona.

Mhlonishwa Ngqongqoshe noma ngazi ukuthi kunezinye izinto ozicabangayo engingeke ngikwazi ukukuphikisa kuzo ngoba mhlawumbe ucwaningile ngazo wabona ukuthi ungasebenza kanjani ngazo. Kodwa-ke njenge-IFP siyasiseka lesi sabelomali, noma-ke amalungu ahloniphekile ebekuxwayisa ngezinto ezithile engingeze ngangena kuzo ngenxa yemizuzu ezosuke iphele. Ngiyabonga kakhulu. (Translation of isiZulu speech follows.)

[Prince M M M ZULU: Chairperson, hon Minister and your Deputy, hon Minister, I see that your administration takes service delivery very seriously.

Your department needs to speed up the process of service delivery. I am grateful for what is happening and also for the funds allocated to labour relations so that there can be something specifically designed for workers. I once warned you, Minister, right here in this House, that we must take care of the Chapter 9 institutions. I said you need to be vigilant because there are people who do their work perfectly whereas there are labour issues in these departments.

But, again, there are people who think they own these institutions; they know that according to the Constitution your department cannot monitor or investigate them because they are only accountable to the National Assembly. I think that needs to be looked at carefully because it worries us as the voters in this country. Another thing that you need to be careful not to do is to give other people the authority that has been given to your department. Your department has been given an enormous task to care for the workers and recruitment.

My comrades tackled the issue of municipalities because it is the taxpayers’ money that is allocated to them; they must make sure that they employ suitable people for those jobs. If you cannot show your leadership skills in that, hon Minister, I think South Africa will be under a dark cloud, and will be back in the woods for the second time, as these municipalities are the ones which are closer to the people.

Hon Minister, I know that there are things that I could not disagree with you on with regard to your thinking because maybe you have researched them and then concluded how you are going to do them. Nevertheless, as the IFP we support this budget even though the hon members have warned you about certain things that I cannot dwell on right now because of time constraints. Thank you very much.]

Mr B NESI: Hon Chairperson, hon Minister, hon Deputy Minister, acting director-general, distinguished guests, and hon members, the ANC is in the process of building a democratic developmental state. The first attribute of a developmental state under our conditions should be its strategic capacity – popular legitimacy deriving from its democratic nature and approach of people-centred and people-driven change. In this regard, it should be able to lead in the definition of a common national agenda and in the mobilisation of all society to take part in its implementation.

As the ANC, we maintain that the ongoing transformation of the state is meant to ensure that these capacities are attained, and the process of identifying weaknesses and correcting them will be intensified.

This includes engendering new doctrines, culture and practices as well as ensuring that the state institutions reflect the demographics of the country. This includes appropriate representation of women and people with disabilities.

Hon members, this applies to the Public Service in its totality as well as specialised institutions such as the judiciary, the police, intelligence agencies and the Defence Force. All these organs should serve the people in an efficient and impartial manner.

We have observed that there are disabling barriers that seriously influence the rate of employment of people with disabilities in the Public Service. These include attitudes, practices and policies of departments; inadequate provision of appropriate education and vocational training; inaccessible buildings and public transport; and the impact of rural and informal settlement environments.

Phaya ezilalini asisakwazi ukuhamba, abantu abakhubazekileyo -bafumana ubunzima ngenxa yokungabikho kwezithuthi. [There are barriers in the rural areas and people with disabilities find it difficult because of a lack of public transport.] The most critical barriers confronting people with disabilities are the employment practices in the Public Service. To address these barrier analysis and a timetable for the reduction and elimination of those barriers, ineffective communication and co-ordination compounded by a lack of data on persons with disabilities should be addressed immediately.

As the ANC we believe that implementing these corrective measures requires more than just references to general political rights. A continuing element of democratic transformation should be a systematic programme to correct historical injustices and affirm those deliberately excluded under apartheid on the basis of race, class and gender.

The need for such affirmative action will decline in the same measure as all centres of power and influence become broadly representative of the country’s demographics. In the process, all inequalities that may persist or arise will need to be addressed.

The Batho Pele policy remains government’s leading campaign to achieve the desired crucial transformation of the hearts and minds of public servants. This is a Public Service culture reorientation programme that is aimed at aligning the behaviour and attitudes of public servants with the practices of a Batho Pele ethos.

In order to intensify the implementation and impact of this policy, the Minister for the Public Service and Administration launched the Batho Pele Impact Assessment which seeks to strengthen the integrated implementation of Batho Pele and the impact thereof across the three spheres of government.

This will enhance partnerships, collaborations and better co-ordination towards the implementation of Batho Pele, and intervene decisively and coherently in the economy and society to address social and economic developmental goals.

Government has indicated its determination to build a cadre of community development workers, CDWs. This is to ensure that government works with the people as closely as possible to empower them to participate in and benefit from the process of reconstruction and development. This challenging but exciting work will require people who are truly committed to serving the people. These are not people who joined the Public Service merely to have a job or earn a salary. Rather, these are fellow South Africans who are moved by our common responsibility to ensure that millions of people break out of the dehumanising trap of poverty and underdevelopment. They are committed to the realisation of the goal we have set for ourselves, the goal of creating a caring and people-centred society. They understand and have internalised the call for all of us to adhere to a new patriotism.

The department has to play a leading role in helping to identify those among our population who fit this description to encourage them to take up the challenge of serving as CDWs.

This is because our work among the people gives us the possibility to get to know and assess many individuals. We will have to use this knowledge to ensure that the nation gets the right people as it builds the new Public Service cadre of CDWs.

Fighting corruption and promoting good governance remain some of the key priorities of government. Corruption is not only a threat to democratic institutions, but it also impacts negatively on service delivery and development.

Khawundiphe amanzi. Ndonqena nokusela amanzi kuba le mizuzu iyabaleka. [Please give me water. I am tempted not to even drink water because time is against me.]

Government has established various measures and mechanisms to uproot corruption in all sectors of society. However, hon members, we want to know when the special service delivery units will be established in government departments to tackle corruption head-on as provided for in the Public Service Act of 1994.

Admittedly, some government departments have attracted attention, as do some of our municipalities, especially the smaller, more isolated ones in rural areas. These circumstances have set an urgent agenda for continuing public service improvement, and the corresponding and required public service training and management development.

For the Public Service to respond adequately to all these issues raised in the so-called service-delivery-related protests that we are experiencing, there is a need … [Time expired.]

In conclusion, the ANC supports the Budget Vote. I thank you, Chairperson.

Mr M W MAKHUBELA: Chairperson, Minister and your Deputy, hon members, no one can accuse the government of not displaying good attention. Neither can anyone accuse the government of not creating new programmes or new committees. The problem is the lack of implementation.

The people of South Africa have been generally unhappy about public administration. In the past they suffered at the hands of the Public Service because of the brutal laws that were administered against them. Now they are unhappy because there is a general lack of capacity and corruption. When Batho Pele was introduced, the whole country was happy. The people thought that an instrument to implement and work properly had been found. However, the problem is that Batho Pele did not take root.

The Public Service Commission monitors only the application of the Batho Pele principle that produces the reports. However, people are not happy about the reports. The reports are only there to do that.

Now, Minister, how can we say that we have a Batho Pele approach? Can the Minister tell me that I can go to a particular department and see the Batho Pele principle in action? One cannot get that. Do we have a situation where there are, for example, 10 nominees that are identified by government in terms of a Batho Pele award in order to promote the principle? Nothing is happening.

We are happy to see, when we check issues from the last financial year - the Minister was there – that some of them have been resolved.

Mthondolovhani, hi ndlela yaleyo ha ku ndhundhuzela. Leyi hi yona ndlela leyi munhu a fanelaka a tirha hayona. Hina va Cope a hi lavi ku bvinya leswi mi swi tirhaka; hi lava leswaku mi tirha mi ya emahlweni. Hina ho tiyisisa leswaku ku tirhiwa hi ndlela leyi; a hi bvinyi ku ya emahlweni ka mfumo. Xana loko Presidente Jacob Zuma a vurile a ku … (Translation of Xitsonga paragraph follows.)

[Mthondolovhani, on that note we praise you. This is the way a person should work. As Cope, we do not want to sabotage what you are doing; we want you to work and make progress. What we are doing is to ensure that work is done in this manner; we don’t sabotage government’s progress. When President Jacob Zuma said that …]

… this is the year of action, is it really happening? We must definitely act because the principal has spoken. I thank you.

The CHIEF WHIP OF THE COUNCIL: Chairperson, hon members, Minister and Deputy Minister, without any hesitation or shadow of a doubt, I must say from the outset that the ANC supports the Budget Vote. Hon Minister and Deputy Minister, the ANC also supports the agenda of your department of continuing with the transformation of the Public Service. We support this Budget Vote not because we are praise singers, but because we know that, as a caring government, we have a solemn agenda to achieve a better life for all our people.

As the ANC always says, together we can do more; this is how we want to do it. We believe that it is incumbent on the executive and Parliament to make sure that the agenda of ensuring a better quality of life for our people becomes a reality, not a deferred dream.

The ANC, which is the champion of the liberation of our country, believes in a united, nonracial, and nonsexist South Africa. Therefore, we want to support the Ministry for the Public Service and Administration in its pursuit of a single Public Service. We are aware that only those who do not want to see a real change in our country are opposed to this. I must also remind the hon members that we created provinces so that services can reach our people faster and satisfactorily, not to be homelands of a special type. [Interjections.] We did this because of our commitment to dismantle all apartheid social relations and boundaries. We remain firm in our commitment that our people get the same services, irrespective of their race and location.

Hon Minister, we would like to request you to move with speed in creating a single Public Service. We say this because we know that if this is not done quickly, you will soon see a province that will have no room for black people - and I mean black people in general. [Interjections.] A good example in this regard is the province where we are seated. In this province a black woman was removed from a top position only to have a white man put in her place. [Interjections.] This was not because she had no capacity, but to maintain a white male-dominated administration. A young African man, who has scarce skills, was removed because he is an African and was therefore perceived to be an ANC member. [Interjections.]

Furthermore, in this province that is led by a woman, one would have thought that women would be in the majority in senior positions of administration. But, unfortunately, the opposite is true because women are not regarded as anything by another woman. I want to put it categorically that since the DA took over the leadership of the Western Cape, this province has regressed and recently polled as not only hostile to black people but plainly a racist province and, of course, it also has its seat in a racist city of our country. In fact, if truth be told, this has become a haven for all racists and “verkramptes” [ultraconservatives] in this province. [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Continue, hon Ntwanambi.

The CHIEF WHIP OF THE COUNCIL: In this province, particularly after the elections in 2009, things have gone back to 1948. One continues to see public leaders dismantling churches. They continue to build uncovered toilets for people. If one goes to our areas – and I’m telling you all black areas, not necessarily African areas only – where poor people live, one will find that services are discontinued.

We continue to see areas where the majority of our people still live in dirty and neglected areas.

Mr T D HARRIS: Chair, on a point of order: I would like you to rule in terms of Rule 46 which says that no member in the Council may deliberately make a statement which the member knows is false. This is in relation to the last statement by the speaker.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Harris, can you indicate which one? Mr T D HARRIS: Excuse me?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Which statement?

Mr T D HARRIS: The statement that services are deliberately cut off in black areas.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Are you saying it is false?

Mr T D HARRIS: I’m saying the member is deliberately making a statement which she knows is false.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Can I come back to you?

Mr T D HARRIS: With a ruling?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Can I come back to you later with an answer to that?

The CHIEF WHIP OF THE COUNCIL: Thank you, Chairperson. Hon Harris, let me tell you. Go to Gugulethu now. I will just take you to three streets to meet the people there so that you can understand better. Those are indigent people.

I also want to suggest that - like it was ordered - when we go to the public institutions we must be able to identify the civil servants. We must have a way of reporting them because they continue to embarrass government.

In conclusion, let me respond to hon Bekker. Hon Bekker, you know that municipal employees are not represented in this debate. That is why we are canvassing for one Public Service so that they can be part of what we are saying. I also want to say I’m so shocked and amused by your inability, hon Bekker, to differentiate between Minister Shiceka and Minister Baloyi. Everything you said here is exactly what you said two Fridays ago – every single word. Maybe the DA has run out of words. Furthermore, it is also so because this merger between the DA and the ID is nothing but a means of ensuring the exclusion of Africans, particularly in the Western Cape.

Finally, I also want to remind hon Bekker - he knows very well - that his leader, Madam Helen Zille, is nothing else but a woman who is supposed to be a champion of women’s programmes. I can assure you that if one looks at our statements here in the Western Cape, nothing speaks about anything. I also want to tell hon members, particularly hon Harris, that we still live in a city that is not ready to transform, that will never transform, if one looks at Cape Town.

Mrs E C VAN LINGEN: Chairperson, on a point of order. I’m asking for clarity on a point of order. A while ago I had a situation where Helen Zille, who, as a premier, is a member of this House, was discredited and a ruling in the Joint Sitting was made wherein the person who insulted the premier had to apologise. On the same basis I am asking for clarity because to me this is a point of order when someone is insulting a member of this House.

Mr A G MATILA: Chairperson, on a point of order: I don’t understand what the hon member’s point of order is all about. There is a difference in what was said in the Joint Sitting and what is said now. There is a huge difference. She did not listen, because here the speaker is just referring to the differences on the ground. Maybe she needs to explain what it is all about.

The CHIEF WHIP OF THE COUNCIL: Chair …

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Just hold on. I will reimburse you your time. Hon member, what is the insult? Can you just clarify what is the insult at this present juncture?

Mrs E C VAN LINGEN: Madam Chair, Helen Zille, who is a member of this House, has been targeted by the current speaker on several issues; insulting her. You can go through them. You can ask for the words because I’m asking for a ruling. It is not right.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, could you please explain to me what the insult is?

Mrs E C VAN LINGEN: Chairperson, she has said that she is not supporting women; she is not a leader for women; she appoints men; and she builds toilets without walls, which is not true. [Laughter.] It is not right. We cannot have a member here …

The CHIEF WHIP OF THE COUNCIL: You know better!

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, may I then appeal that you take your seat.

Mrs E C VAN LINGEN: If I get a ruling I would be glad to do so.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Please, can you take your seat at the present juncture. Just take your seat.

Mrs E C VAN LINGEN: Thank you.

Ms M G BOROTO: Chairperson, on a point of order: I just want to ask the hon member not to waste our time. She says the speaker is directly attacking issues and there is no insult. This is a debate in which we debate issues. So the point of order is not there at all. Thank you.

Mr D V BLOEM: Chairperson, on a point of order: I think three months ago I gave hon Ntwanambi advice to relieve stress. Hon Ntwanambi, don’t mention the name of Helen Zille, because you are going to have a very bad night tonight. Don’t dream about her.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Bloem, hon Bloem, that is not a point of order.

Mrs A N D QIKANI: Mhlalingaphambili, ndinesiphakamiso sonqwanqwado: Ingaba sisithuko kusini na ukuthi: Awakhi zindlu; akukho zindlu zangasese. Ingaba sisithuko na eso? [Chairperson, on a point of order: Is it an insult to say: You don’t build houses; there are no toilets. Is that an insult?]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): May I explain something now? I will make a ruling after this. Hon Harris, in the next sitting I will actually deal with your point of order. Can we proceed? We can’t continue like this.

Mr K A SINCLAIR: Chairperson, on a point of order: I just want to ask the hon Chief Whip whether Cope has got the answers, because in her speech she said the DA doesn’t have them. [Laughter.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, that is not a point of order and please behave yourself. Hon Ntwanambi, can you continue? The CHIEF WHIP OF THE COUNCIL: Chairperson …

Mr A G MATILA: Chairperson, on a point of order: Chairperson, because you said you will be coming with a ruling around the point of order that was raised by hon Harris …

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): I will answer all points of order.

Mr A G MATILA: … because she is misleading the House now. I want to check as to whether …

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): That is fine. I will answer all of them. Thank you. Continue, hon Ntwanambi.

UMBHEXESHI OYINTLOKO WE BHUNGA: Enkosi Mhlalingaphambili, uyabona ke bantu beCope bendisanixolele namhlanje. Mhlawumbi ke nani aniziva nonwabile ukuba andilichaphazeli igama lenu. Nina ke niseza kulwa kuba nemka kwiANC ninomsindo kwaye niqumbile, nisaqumbile nangoku. Okunifaneleyo nina kukuba niye kwinkomfa nonyule iinkokheli kwaye nizifune kananjalo ukuba … (Translation of isiXhosa paragraph follows.)

The CHIEF WHIP OF THE COUNCIL: Thank you, Chairperson. You see, Cope members, I didn’t intend mentioning you today. Maybe you also do not feel happy when I do not mention your name. You are still going to fight because you were angry when you left the ANC; you are still angry and disgruntled. What you need to do is to go to a conference to elect leaders and do some introspection to find out …]

… who you are exactly. What is it that you want? The fact of the matter is that you don’t know what you want. You also don’t know what you are. You don’t have a vision because you don’t even have a policy. You can’t have an answer if you don’t have a policy. [Laughter.] Go back and take a look at yourselves again. Get yourselves a mirror and look at yourselves properly; you will find yourselves. Thank you, Chair. [Applause.]

Mr D V BLOEM: Are you brave enough to take a question?

The MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: Chairperson, I thank all hon members for the debate on the Vote. It is a very important engagement in the service of the separation of powers between Parliament and the executive. Your inputs are not only fulfilling the democratic imperative that you hold us accountable for, but also go far in terms of raising issues that we have to respond to, either today or in the course of the financial year, as we will engage from time to time.

We value all your inputs, although some provided entertainment. Our resolve is that whatever you said is based on the understanding that you are as patriotic as all of us. This message goes to all delegates of this House irrespective of the political party which you represent.

Hon delegates, you will realise that the underlying position that informs the way we do things is people-driven. As delegates to this House, from time to time visiting provinces in your programme of Taking Parliament to the People, be assured that we will always be available to you so that the issues that are raised regarding service delivery may also be considered at our level for making follow-ups.

I believe that you will always find peace with this understanding, as it is a reality for all of us that the doctrine and practice of the separation of powers also have a converse part of it, which is power convergence. We are all Members of Parliament and we are representing two organs of one and the same state of South Africa. Our parliamentary liaison officers will always be a link between you and us.

The other interesting part of our relationship is that we share a common partner, which is the Public Service Commission. Together we need to go down to the communities and also weld our relationships around common programmes of action. When we go to communities we will also go to those which hon members said represent the past and not the present South Africa. We will go to all of them.

One of the other priority issues which we will pursue is to make sure that we do all we can to facilitate the delivery of services with a view to impacting on people’s lives, giving them first preference, Batho Pele. In his own words the Chairperson of the Public Service Commission, Dr Ralph Mgijima, said in one of the reports that:

Given the complex and multifaceted nature of rural poverty, the required interventions to address rural underdevelopment are also complex, needing to be multisectoral and integrated in nature.

Let us work together, clear in our understanding that we have respective mandates and we are committed to serving the nation according to the oath we signed as individuals in becoming Members of Parliament.

Last week at about 14:45 in the afternoon, I signed a performance agreement with the President of the Republic of South Africa. I committed myself to leading this department differently so that we can realise our outcome of an efficient and development-oriented Public Service.

In conclusion, allow me to thank my support staff, the leadership of the portfolios, the Public Service Commission and the Deputy Minister for the support. I should take this opportunity to announce that whereas we have our acting director-general, today, we have taken a decision today to appoint a permanent director-general. As we are speaking I want to indicate that Blake Mosley-Lefatola will resume his duties as DG in no time. We want to lead by example when we say that we need to fill vacancies as speedily as possible.

I take this opportunity to say thank you very much for allowing us to present the Budget Vote. Before I go back, it is important that we thank the chairperson of the committee, hon Mokgobi. You are right when you say that we were ready when we took over in 1994 because we graduated from the university of wisdom and unity. We were ready then, we are ready now and we will be ready tomorrow.

We are taking our cue from what Samora Machel said - that the struggle is a school of unity. We derived and we drank from that school. That is why we are ready. It is true that we would present quarterly reports and even more than that, but the minimum we are going to do.

Things that Mr Bekker said will slightly address some of the things Mr Makhubela and Mr Zulu raised. The Public Service Commission is independent. We want to impress, raise and invite all of you to support the independence of the Public Service Commission. What is happening is that the Public Service Commission is funded through transfer funds from the Department of Public Service and Administration, DPSA, Vote 11. This is not undermining the independence of the Public Service Commission. The arrangement before was not the best. We are looking for a final position. The Public Service Commission, as an independent institution appointed by this Parliament, has to be funded according to that. Remember, it was yourselves as Parliament who appointed former Member of Parliament, Prof Kader Asmal, who led a commission, an ad hoc committee, to look at the review of the Chapter 9 institutions including the Chapter 10 institution of the Public Service Commission.

The corporate form of this entity will be finalised in no time. There is no one who is trying to undermine the independence of the Public Service Commission. The Deputy Minister will strengthen the executive responsibility to make sure that the executive oversight is done. This will ensure that government departments respond to the recommendations of the Public Service Commission. Parliament has that responsibility at political oversight level.

Some people say the Public Service Commission does not have teeth; some say it has two sets of teeth - one set with Parliament and the other with the executive. It is up to those of us with whom the teeth reside to sharpen them so that they must bite as we support the Public Service Commission.

Mr Bekker, the time has come for us to remind people, amongst other things, of what Shakespeare said. In one of his sonnets titled The Parting, Michael Drayton said, and I quote: Since there’s no help, come let us kiss and part.

And Shakespeare:

Love is not love which alters when it alteration finds, Or bends with the remover to remove: O no! it is an ever-fixed mark …

That time has come and we have pronounced that we will do our best to train and expose our public servants to whatever it takes for them to rise to the level, as Mr Makhubela said, of internalising their obligations and service to this country to make sure that the policies that we developed are implemented. If they can’t rise to that level, the parting time has arrived. That is the time that we will also call upon Parliament and this House to support us as we deal with these issues.

Baba Zulu, on the issue around the special service unit we indicated when we pronounced that we are going to create this, during the Public Service Week in June we are going to pronounce where we stand.

It is true, hon Nesi, that the issue of disability is a very serious issue. I indicated that in March last year we launched guiding principles. We have committed ourselves and the nine steps that we spoke about will be popularised. Next year our priority is to make sure that there is compliance. If there is no compliance, whether in the Eastern Cape or the Western Cape, we will make sure it is there.

The Ministry in the Presidency responsible for performance monitoring and evaluation monitors governance in the whole of the Republic of South Africa. We don’t have any part of this country that is a state on its own. We are part of one state. South Africa is a unitary state. That is what we are going to do.

Comrade Chief Whip, we assure you, as we conclude, that when we speak about compliance we mean compliance. We are going to make sure that compliance is there and it is done. South Africa belongs to all who live in it, united in our diversity. That is what the Constitution says, taking a cue from what the Freedom Charter said, namely that South Africa belongs to all who live in it, black and white.

When we fill positions, our staffing norms are instructive that the population of your public servants in any area must be reflective of the demographics in that particular area. There is no excuse for that. There is no holy cow. We are going to address all these things.

If I have not commented on any of the things that you said, we should get together at a later stage. At this time it is not possible for me to respond to all of them. We are together to engage on all these issues. We thank you for the time you gave us, Chairperson.

I ntiyiso lowu hanyaka tatana Mugwena leswaku loko hi vulavula hi ku ku fanele ku tirhiwa. Xikombiso xa kahle lexi mi nga ta xi twisisa hi ri ku ta tlurhuka ritshuri ehenhla ka nhloko ya xisiwana. Loko ri nga tlurhuki hinkwerhu hi fanele ku koka kahle naswona yi nga koki onge letin’wana ti pane hi joko xikeyi hikuva yi nga ti tlimba swi nga fanelanga.

Hi kona tanihi Ndzawulo ya Vukorhokeri bya Vaaki na Mafambiselo hi tirha ku fana na vadzambi. Loko hi ku tshinya u nga twi hi kala hi tshinela ekusuhi i ta swi twa kunene. (Translation of Xitsonga paragraphs follows.)

[Mr Mugwena, it is really true when we say that work must be done. A good example that you can understand is that all people must dedicate themselves to hard work to eradicate poverty. If not, we must all join hands and exert the same effort, and not work as individuals.

That is when the Department of Public Service and Administration will come on board as supervisors. When we issue a warning and there is no compliance, then we will be bound to put tough measures in place.]

Thank you very much.

Debat concluded.

The Council adjourned at 17:42. ____

            ANNOUNCMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Draft Bills submitted in terms of Joint Rule 159

(1)    South African Reserve Bank Amendment Bill, 2010, submitted by
     the Minister of Finance.


     Referred to the Standing Committee on Finance and the Select
     Committee on Finance.

Please note:  The above item replaces item 1 under Announcements in the
           ATC of 4 May 2010, where the Bill submitted in terms of Joint
           Rule 159 was incorrectly referred to the Standing Committee
           on Appropriations and the Select Committee on Appropriations.