Mr. SPEAKER and members met in the Assembly Chamber of the House of Assembly, Cape Town, at 10.30 a.m.

By direction of Mr. Speaker,

The Secretary read the following Proclamation of the State President dated, 1 November 1974, summoning Parliament to meet today:

No. 222, 1974.]

Under and by virtue of the power and authority vested in me by section 25 of the Republic of South Africa Constitution Act, 1961, I hereby prorogue Parliament until Friday, the Thirty-first day of January 1975, and I declare that the Second Session of the Fifth Parliament of the Republic of South Africa will commence at Cape Town on that day for the dispatch of business.

Given under my Hand and the Seal of the Republic of South Africa at Bloemfontein on this First day of November, One thousand Nine hundred and Seventy-four.

J. J. FOUCHÉ,

State President.

By Order of the State President-in-Council,

B. J. VORSTER.

Mr. SPEAKER announced that during the recess vacancies had occurred in the representation in this House of the following electoral divisions:

1. (1) Pietersburg, owing to the resignation with effect from 1 December 1974 of Mr. A. S. D. Erasmus;
2. (2) Winburg, owing to the resignation with effect from 14 December 1974 of Mr. A. C. van Wyk.

Mr. SPEAKER announced further that the vacancy in the representation in this House of the electoral division of Wonderboom had been filled on 27 November 1974 by the election of Mr. D. W. Steyn.

Mr. D. W. Steyn, introduced by Mr. J. M. Henning and Mr. W. L. van der Merwe, made, and subscribed, the oath and took his seat.

Mr. SPEAKER announced that a letter had been received from the Secretary to the Prime Minister, stating that the State President would open Parliament at 11 o’clock a.m. today in the Senate Chamber.

Mr. SPEAKER and members proceeded to the Senate Chamber to attend the ceremony of the opening of Parliament, and on their return,

Mr. SPEAKER took the Chair and read prayers.

Mr. SPEAKER stated that at the opening ceremony he had received a copy of the State President’s Address to members of the Senate and of the House of Assembly, which was in the following terms:

MR. PRESIDENT AND MEMBERS OF THE SENATE:

MR. SPEAKER AND MEMBERS OF THE HOUSE OF ASSEMBLY:

I am glad to welcome you to this the Second Session of the Fifth Parliament of the Republic of South Africa.

During the past six months, and especially since October last year, the political atmosphere in Southern Africa has shown signs of dramatic change. The tendency towards sterile confrontation has been replaced by a real and growing determination to find solutions to difficult problems and to normalize relations with Africa, particularly in Southern Africa. Genuine efforts are being made in this direction, also by certain leaders of our neighbouring and nearby States, and much has been achieved.

There have been setbacks, but considering the obstacles which had and still have to be overcome, this was only to be expected. The task that lies ahead is formidable, and it will require the goodwill and sincere co-operation of all parties concerned if the prize of peace for Southern Africa is to be won. As a spirit of mutual trust develops, so one hopes it will become easier to overcome the initial difficulties and to resolve the basic problems. In this regard, the effective implementation of the cease-fire and the ending of violence in Rhodesia are essential prerequisites.

We are of Africa, and with the useful contacts already built up on this continent, South Africa will continue to do everything possible—without interfering in any country’s domestic affairs and without attempting to prescribe to anyone —to bring the parties together and to promote understanding of each other’s problems.

In the past year, the Government has also continued to expand and strengthen our ties with other countries outside Africa. New diplomatic missions have been opened in South America, and the recent South African Economic Mission to two countries on that continent was particularly well received. There, as well as in other parts of the Free World, there is great appreciation of the policy of détente in Southern Africa.

In contrast to South Africa’s striving for the development of friendly relations among peoples and countries, and for communication instead of confrontation, the General Assembly of the United Nations took steps to make it impossible for the Republic to exercise its full rights as a Member State. In violation of its own Charter, the organization unfortunately seems to have become adverse to dialogue and peaceful relations.

In spite of hostile propaganda and temporary setbacks there is a growing awareness of and heightened interest in the important role South Africa is destined to play in African and world affairs.

At the same time the Government is aware that it is in the interests of South Africa to be able to defend its territorial integrity at all times and a state of readiness is therefore being systematically maintained and constantly improved. The South African Defence Force is now better prepared for the defence of our country than ever before, and our military organization is less dependent on outside resources. Research, development and production are proceeding on a carefully planned basis.

In view of the terrorist threat from outside our borders, unremitting vigilance and counter-insurgency duties by our police and security forces remain imperative. Internal security, peace and order are ensured by timeous preventive and counter-measures.

The general revival of the economy which set in during 1973 gained such momentum that an excellent rate of growth was attained over the past year in which all population groups shared. There was a notable increase in gross fixed investment, especially in the mining and manufacturing industries, while consumption expenditure increased at a more moderate rate.

These favourable economic conditions were unfortunately not without problems. For one thing, we have not been able to escape the steady international escalation of price levels which has also had a marked effect on the rate of inflation in South Africa. Owing mainly to substantial increases in the prices of various commodities, such as crude oil, and increased imports of plant, machinery and equipment, South Africa’s total merchandise imports rose sharply in 1974. In addition, there were shortages of strategic raw materials such as steel and certain petro-chemical products.

The high rate of growth imposed a severe strain on capital resources, with a consequent hardening of interest rates. It also necessitated greater investment in infra-structure, and pressure built up once more in the labour market.

The fight against inflation is taxing the ingenuity of governments everywhere. In South Africa, in addition to well-tried fiscal and monetary measures, the Government has adopted a positive anti-inflationary policy based principally on a two-pronged strategy: first, a collective co-operative effort on the part of all sections of the community to contain price increases, rather than the application of direct economic controls, which are irreconcilable with South Africa’s overall policy objectives; and, second, the promotion of productivity and competition to increase the output of goods and services throughout the economy.

Partly as a result of the relatively conservative financial policy of the authorities, the high growth rate of the economy began to ease off slightly about the third quarter of 1974. This, in turn, eased the pressure, referred to earlier, on the labour, money and capital markets and also had a salutary effect on the balance of payments. Imports tended to level off, while the inflow of capital increased appreciably, mainly on account of the narrowing of the gap between domestic and foreign rates of interest.

During the closing months of 1974 the country’s gold and other foreign reserves showed a notable increase.

An important element in the balance of payments is the price of gold on the private gold market, which rose sharply over the year 1974. Although fluctuations in the price are to be expected from time to time, and despite attempts abroad to belittle the role of gold as a monetary metal, the long-term prospects for gold are excellent.

The granting of two substantial State loans within the space of three years for the establishment of new gold mines further underlines the Government’s confidence in the future of gold.

The financial situation abroad is still very uncertain. Although certain countries have, by means of a strict credit policy, achieved a measure of success in their fight against inflation, the general expectation is that the year 1975 will be marked in most countries by low rates of growth coupled with continued inflation. These conditions could also affect the South African economy, but in general South Africa is in a strong position to temper or withstand adverse influences from overseas. In fact, it is expected that for the current year we shall maintain a sound rate of growth, substantially higher than the average for the Western World.

The Government is proceeding with the gradual easing of import restrictions in a manner consistent with its international treaty obligations and its declared policy of keeping open reasonable opportunities for the sale of locally manufactured products in the domestic market.

While the Government is continuing its policy of forging closer economic and trade ties with other countries, South Africa’s traditional trading partners also continue to display a keen interest in maintaining their commercial links with our country. By value, merchandise exports increased considerably in 1974, despite the highly competitive conditions prevailing in world markets. The various incentives offered to local exporters by the Government did much to improve the export performance in the past year.

Uncertainty about oil supplies, the soaring of oil prices during the past year and more, and the urgent need to build up our oil reserves, impose an obligation on all of us to conserve fuel as much as possible.

*The year 1974 was an excellent one for agriculture in South Africa. The total volume of agricultural production was the highest ever, local producers’ prices were at a satisfactory level, and in export markets conditions were even more favourable. In fact, gross farming income last year topped the R2 000 million mark for the first time.

The effect of increased production and marketing costs weighed heavily on most branches of agriculture and also played a material part in the rising price structure. As a result of changed conditions, farmers have been forced to make major adjustments and will probably have to do so again during the current year.

In view of the critical international food situation, which is expected to deteriorate further, a sustained increase in food production in the Republic is regarded as a top priority, in order to be able in the first place to continue to provide for increasing domestic needs and, in the second place, to increase exports.

Intensive production makes heavy demands on agricultural research and on the farmer, as regards training and managerial ability. Consequently, due attention is being given to these important requirements for a sound agricultural industry and every endeavour is being made to co-ordinate existing services as effectively as possible.

The mineral industry is experiencing phenomenal growth, and during the past year the total sales value of our minerals reached a new peak. This growth rate is expected to continue in 1975 and even to accelerate towards the end of this decade.

Important new mineral deposits which can be exploited economically have already been discovered, and promising prospecting results point to possible further important discoveries.

Economic development in the Republic is creating increasing job opportunities for various categories of workseekers, and the number of registered unemployed continues to constitute less than 1% of the number employed.

The shortage of trained workers in certain skilled occupations continues to receive the attention of all concerned.

Special attention is also being given to vocational guidance for young people so as to enable them to develop to the full in the occupations in which they are placed.

The eleventh manpower survey is scheduled for this year. Several training schemes have been introduced under the Industrial Conciliation Act, and the reclassification of skilled work is continuing within the framework of collective bargaining.

Work on the major water projects is progressing according to plan, and the first phase of the Orange River Development Project is nearing completion.

A master water plan has been approved for South-West Africa. This can be carried out in successive phases and will supply the water needs of the Territory up to the year 2000.

The Water Research Commission is financing some thirty research projects under the guidance of various steering committees. These projects cover various problems in the Republic’s water management, such as pollution, re-use, irrigation and subterranean water.

The recommendations made by the Commission of Inquiry into Universities in regard to the function of universities as leaders in the field of education and the development of higher education in general will be considered by the Government in due course.

Preparatory to handing over health services to the homeland Governments the necessary posts structures are being worked out and staff trained for this purpose.

The promotion and co-ordination of a comprehensive health service in the community continues to be an important objective. The urgent need to improve and expand accommodation for psychiatric patients is being given high priority.

During the past year South Africa once again distinguished itself in world sport, won several world competitions and equalled or beat various world records.

The Government has taken positive and effective measures to enable local authorities to provide amenities such as halls, parks, sports and other recreation facilities, as well as to tidy up and beautify the grounds surrounding dwelling units in certain townships where large numbers of persons in the lower-income groups are living. It has also been possible to reduce considerably the rentals and instalments on thousands of homes erected for both the economic and sub-economic groups. These concessions will be particularly appreciated by families with more modest incomes.

Substantial progress has been made recently in providing housing, especially for the Coloured population group.

Towards the end of 1974 a Coloured Council, consisting of a majority of elected members, was constituted for South West Africa. The election for the Coloured Persons’ Representative Council in the Republic will be held in March. A draft constitution for the Rehoboth Gebiet, drawn up in consultation with the Baster Advisory Council, will be considered during this session. After consultations with the tribal councils of Namaland, it is proposed to issue a proclamation providing for the establishment of tribal councils, township councils and a Nama Council for Namaland.

In November 1974 the South African Indian community was given the opportunity of electing fifteen members of the South African Indian Council. Certain powers relating to educational and welfare matters have already been delegated to the Executive Committee of the Council.

With the proposals regarding the acquisition of land for the Bantu areas in the Republic which will be submitted this session, the allocation of land in terms of the 1936 undertaking will be almost complete.

A joint committee of the Governments of the Republic and the Transkei has embarked on the preparatory work in connection with the drawing up of the constitutional documents for the attainment of independence by the Transkei.

It has been decided, in consultation with the homeland Governments concerned, to revise the basis for financial assistance from the central Exchequer in such a way that the calculated amount of certain indirect taxes on commodities consumed in the homelands, as well as the calculated amount of tax imposed on companies or branches of companies operating in the homelands, will be allocated to the Revenue Funds of the Homelands.

The Government is giving its active attention to the extension of training for the Bantu at all levels, inter alia in medicine, dentistry and veterinary science. Satisfactory progress is being made with the programme of training for Bantu workers in white areas in those job categories in which they may be legally employed.

By its sustained efforts to maintain and develop good relations with the leaders of the various Black nations and of the Coloureds and Indians, the Government has helped to lay sound foundations and achieve a basic understanding. These circumstances and the success of the latest series of discussions have strengthened the prospects of greater mutual understanding and more positive co-operation in the future.

MR. SPEAKER AND MEMBERS OF THE HOUSE OF ASSEMBLY:

MR. PRESIDENT AND MEMBERS OF THE SENATE:

MR. SPEAKER AND MEMBERS OF THE HOUSE OF ASSEMBLY:

I pray that the blessing of Almighty God may guide and sustain you in your labours and deliberations.

I now declare this the Second Session of the Fifth Parliament of the Republic of South Africa to be duly opened.