THURSDAY, 11 MAY 2000 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY
                                ____

The House met at 14:00.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.

                          NOTICES OF MOTION

Mr M RAMGOBIN: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes - (a) President Thabo Mbeki’s unequivocal support for legitimate land claims in the context of decolonisation and the African renaissance, democracy and the rule of law in Zimbabwe, in his address to Parliament yesterday; and

   (b)  the positive response of the markets to the leadership given by
       President Thabo Mbeki yesterday;

(2) commends the President for his wise and principled approach to the crisis in Zimbabwe; and

(3) calls on all role-players in Zimbabwe, South Africa and the international community to support the President’s tireless efforts to achieve peace, stability, justice for all and democracy in Zimbabwe.

[Applause.]

Mr D H M GIBSON: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DP:

That the House -

(1) notes that -

   (a)  legislation relating to the regulation of firearms has yet to be
       tabled in Parliament;

   (b)  there is a high degree of public interest in this matter; and

   (c)  some 2 000 submissions by interested members of the public lie
       unopened and unread in a parliamentary office;

(2) expresses its grave concern that the views of interested parties are being ignored in the drafting of the legislation; and

(3) calls upon the Minister to give an explanation to this House and the public regarding whether he intends -

   (a)  proceeding with this legislation; and

   (b)  taking account of submissions from the public on this matter.

Mr V B NDLOVU: Chairperson, I give notice that at the next sitting of the House I shall move on behalf of the IFP:

That the House -

(1) notes the killing of business people at Ulundi and that the culprits have not yet been arrested;

(2) believes that the continued killing of IFP members at Nongoma is not acceptable at all;

(3) urgently requests the police in the Nongoma-Ulundi area to arrest the culprits and secure the lives of the innocent people; and

(4) notes with concern the raging debate about establishing a peace process in the area.

Mr H P CHAUKE: Chairperson, I give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes the appointment of a judicial commission of inquiry to investigate match-fixing allegations in cricket;

(2) believes that the establishment of the commission will go a long way towards getting rid of corruption in sport;

(3) commends the President, the Minister for Justice and Constitutional Development and the Minister of Sport and Recreation for establishing this commission; and

(4) congratulates Judge Edwin King on his appointment as the chairperson of the commission.

[Applause.]

Mnr I J PRETORIUS: Mnr die Voorsitter, ek gee hiermee kennis dat ek op die volgende sittingsdag namens die Nuwe NP sal voorstel:

Dat die Huis - (1) kennis neem van ‘n berig in Business Day van 9 Mei 2000 oor beweerde omkopery deur onwettige immigrante in die Lindela-repatriasiesentrum in Krugersdorp en dat die Adjunkminister van Binnelandse Sake, me Lindiwe Sisulu, regstappe teen M-Net se televisieprogram Carte Blanche oorweeg na aanleiding van ‘n program wat op Sondagaand, 7 Mei 2000, gebeeldsend is;

(2) versoek dat vasgestel word of enige waarheid in die berig van Business Day steek dat onwettige immigrante ‘n fooi betaal aan die firma Dyambu Operations, wat aan hoë-profiel-ANC-politici behoort, om deportasie uit Suid-Afrika vry te spring; en

(3) versoek dat vasgestel word of die adjunkminister en ander eienaars van Dyambu Operations, naamlik die Adjunkspeaker, Baleka Mbete, en die Gautengse LUR vir openbare veiligheid, mnr Mokonyane, na aanleiding van bogenoemde berig oorweeg om ‘n verklaring oor die aangeleentheid te doen.

[Tyd verstreke.] [Tussenwerpsels.] (Translation of Afrikaans notice of motion follows.) [Mr I J PRETORIUS: Mr Chairman, I hereby give notice that on the next sitting day I shall move on behalf of the New NP:

That the House -

(1) notes a report in Business Day of 9 May 2000 on alleged bribery by illegal immigrants in the Lindela Repatriation Centre in Krugersdorp and that the Deputy Minister of Foreign Affairs, Ms Lindiwe Sisulu, is considering legal action against M-Net’s television programme Carte Blanche in consequence of a programme that was broadcast on Sunday evening, 7 May 2000;

(2) requests that it be established whether there is any truth in the report of Business Day that illegal immigrants pay a fee to the firm Dyambu Operations, which belongs to high-profile ANC politicians, to avoid deportation from South Africa; and

(3) requests that it be established whether the Deputy Minister and other owners of Dyambu Operations, namely the Deputy Speaker, Baleka Mbete, and the Gauteng MEC for public safety, Mr Mokonyane, are considering making a statement on the matter, in consequence of the above- mentioned report.

[Interjections.] [Time expired.]]

Mr M N RAMODIKE: Chairperson, I give notice that at the next sitting of the House I shall move on behalf of the UDM:

That the House -

(1) is appalled at the dereliction of duty by the Premier of the Northern Province and his continuous refusal to announce the findings and recommendations of the Ralushai commission of inquiry, which was appointed way back in 1997 to investigate irregularities in the appointment of traditional leaders, the disputes over traditional leadership and the legitimacy of some traditional leaders, including paramount chiefs and kings;

(2) notes that traditional leaders in the Northern Province are disgusted at the recent announcement by the Premier of the Northern Province when appealing for assistance by the traditional leaders to release and handle the Ralushai report;

(3) is aware that the report was submitted, Nicodemus-like, to Rhyne Thulare Sekhukhune III and his half-brother Kenneth Kgagudi Sekhukhune by the premier;

(4) is aware that the report is being withheld for petty political reasons, and that the premier is duty bound to release the report in terms of section 32 of the Constitution of the Republic of South Africa …

[Time expired.]

Dr S A NKOMO: Chairperson, I give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes that the global pharmaceutical industry makes a profit of US $300 billion and that less than 10% of this is spent on medical research aimed at the poor, who make up 90% of the world’s population; (2) recognises that there are unequal power relations between companies and governments in the developing world, resulting in monopolies on the distribution of drugs, causing artificially high prices;

(3) urges the pharmaceutical companies to supply essential medication at affordable prices to governments or, failing this, to issue compulsory licences under the Patents Act for essential medication; and

(4) calls on the pharmaceutical industry to withdraw its court action against the Medicines and Related Substances Control Amendment Act of 1997.

[Applause.]

Adv Z L MADASA: Chairperson, I hereby give notice that at the next sitting of the House I shall move on behalf of the ACDP:

That the House –

(1) notes that - (a) both President Mugabe and the white farmers in Zimbabwe have failed, since independence, to put in place an effective mechanism to address land distribution;

   (b)  such failure is one of the major contributors to the present
       land crisis;

   (c)  the war veterans do not have an exclusive right to land solely
       because they fought during the war; and

   (d)  the land belongs to the people of Zimbabwe as a whole; and

(2) resolves that a land reform forum be established involving representatives from diverse communities of Zimbabwe, business and government, to address the issue.

Mr I S MFUNDISI: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the UDCP:

That the House notes that -

(1) the proposed introduction of a black language across the education system will prove beneficial in the long term for all South Africans;

(2) ideal preparations have to be made to ensure that such indigenous languages are taught by speakers of those languages, so that learners will derive the maximum benefit;

(3) the singing of the national anthem by all will ensure that at the end of the day all South Africans will develop the desired patriotism; and

(4) the introduction of character-building movements such as the Scouts and Girl Guides should also be the norm if we hope to produce future South Africans of substance.

Mrs N B GXOWA: Chairperson, I give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House - (1) notes with shock the submission of Busiswe Maqungo to the Portfolio Committee on Health in which she described how her HIV-positive baby died after being refused treatment;

(2) endorses the Government’s ruling that all Aids-related opportunistic infections should be treated and that HIV-infected people have equal rights to medical services;

(3) calls on all medical professionals to honour their commitment to treat all in need of medical care and to be especially sensitive to the needs of those infected with the HI virus;

(4) condemns the cruel and heartless treatment of baby Nomazizi Maqungo; and

(5) urges the Department of Health to promote and distribute the patients’ rights charter so that all patients and health professionals are aware of the rights of those needing medical treatment.

[Time expired.] [Applause.] Mr N J CLELLAND: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DP:

That the House -

(1) notes that the value of the rand improved as a consequence of President Mbeki’s undertaking in this House that his Government will act against land invasions in this country and uphold the rule of law with regard to property rights;

(2) trusts that the ANC Government will hold firm in this undertaking, even in the face of opposition from individuals within its own party and among its supporters; and

(3) calls on President Mbeki to diplomatically suggest to his counterpart in Zimbabwe that a similar course of action would be desirable with regard to that country.

Dr R RABINOWITZ: Chair, I give notice that on the next sitting day of the House I shall move: That, in view of the ongoing debate about the alleged cost of patent antiretroviral medicines and other medication for treating opportunistic infections linked to Aids, the House -

(1) calls on the Minister of Health to engage urgently and actively in partnerships with all eight companies providing anti-Aids therapies in South Africa in order to ascertain the best possible prices that can be negotiated for bulk purchasing of the various medicines by the state; and

(2) believes that in this way we will be able to put to bed, once and for all, speculations about whether or not it is necessary to abrogate patent rights, so that the Government can offer cost-effective treatment to millions of people with HIV; and

(3) ascertains what the cost of such treatment would be to the state at current rates of infection.

Mrs M S MAINE: Chairperson, I give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes -

   (a)  the increasing high rates of youth unemployment in South Africa;
       and

   (b)  that this affects mostly recent school-leavers and does not even
       spare graduates;

(2) recognises that this is caused by the general lack of relevant skills, experience and poor education and training inherited from apartheid;

(3) commends Government, labour and business for establishing funds for skills development programmes for the youth; and

(4) urges the Government to speed up the implementation of the Presidential Jobs Summit’s resolution with regard to employment of the youth.

Dr P J RABIE: Chair, I hereby give notice that on the next sitting day of the House I shall move on behalf of the New NP:

That the House -

(1) notes that the recent alarming decline in the value of the rand in relation to the American dollar stopped when the hon the President announced in Parliament that the illegal repossession of agricultural land without compensation would not be tolerated in South Africa;

(2) disagrees with the statement made by the hon the Minister of Finance to the Portfolio Committee of Finance on 9 May 2000 that the recent decline of the rand in relation to the American dollar is not attributable to untenable actions of the supporters of the Zanu-PF government in Zimbabwe, but to the strength of the US dollar; and

(3) calls upon President Mbeki to repudiate President Mugabe in public to end the gross violation of human rights in Zimbabwe immediately. [Interjections.]

Mr S ABRAM: Chair, I give notice that at the next sitting of the House I shall move on behalf of the UDM:

That the House -

(1) notes the Government’s intention of making available 2 million hectares of land to upcoming commercial farmers through the relevant provincial MECs; and

(2) calls on the Government to ensure that -

   (a)  the said land is parcelled up into commercially viable economic
       units, so that genuine empowerment and employment opportunities
       and entrepreneurs are created;

   (b)  it creates mechanisms, for example co-operatives and finance at
       special rates, to assist such upcoming farmers;

   (c)  the expertise in the Department of Trade and Industry, the
       organised agricultural sector and all other stakeholders, be
       drawn in to ensure the sustainability of the entire process; and
   (d)  the entire process be regularly monitored and overseen by the
       Department of Agriculture and Land Affairs, which shall report
       regularly to Parliament.

Ms L M T XINGWANA: Chairperson, I give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes -

   (a)  the continued suffering of and discrimination against women, in
       particular black women and young girls, because of laws of
       succession that are unconstitutional and discriminatory; and

   (b)  the critical situation of many black women and children who
       continue to be evicted and rendered homeless once their husbands
       or fathers die; and

(2) urges the Minister for Justice and Constitutional Development to speed up the transformation of these inheritance laws, which continue to discriminate against women and children on the basis of their colour, religion and sex, and to ensure that these are consistent with our Constitution and Bill of Rights.

[Applause.]

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON ENVIRONMENTAL AFFAIRS AND TOURISM - AFRICAN-EURASIAN MIGRATORY WATERBIRDS AGREEMENT

Order disposed of without debate.

Report adopted.

                         APPROPRIATION BILL

Debate on Vote No 21 - Minerals and Energy:

The MINISTER OF MINERALS AND ENERGY: Chairperson, hon Deputy President, hon members, ladies and gentlemen, the Department of Minerals and Energy is entrusted with important and precious resources of this nation, all of the energy and all of the minerals. Actions we take, therefore, affect the broader economy and society directly or indirectly. Minerals and energy contribute significantly to the South African economy through exports in raw and beneficiated form. Energy and mining also employ almost 400 000 workers. The RDP remains an important ideal and guide for the work that we do. Energy is also important because it is a basic need, required to fulfil reconstruction and development targets, and minerals are key in building this economy, especially when value is added within our shores.

Our work has to be done within a sound, well-managed institution. Charles Handy, the well-known English business guru, in his book Gods of Management, refers to four Greek gods that, he says, symbolise the different ways of managing organisations. He says one is a Zeus manager and institution if one believes in patriarchal traditions and power. I hope, at least on this side of the House, we do not have people like that. One is an Apollo manager if one believes in order and reason, and an Athena manager if one is a warrior and has a fighting spirit. The god Dionysus is for creative individuals. Our department takes a leaf from all these gods, except Zeus, of course, the god of patriarchy. With myself and the Deputy Minister, Zeus has no chance. [Laughter.] But I will get back to this analogy.

In pursuing the clearly set-out policy in our line of function, we seek to improve the quality of our expenditure by ensuring that our limited resources are used maximally. The Deputy Minister will elaborate on aspects of our budget. While noting that excellent work is being done by officials and support organisations, the time to re-engineer ourselves as a department has come.

The department has finalised the process of strategically aligning its core business and key objectives with the latest policy objectives and key priorities of the Government. This has also provided us with a framework within which our departmental organisation and establishment structure should be determined. Major events in our calendar such as mining summits, the unfolding integrated energy plan, our commitment to the protection of the environment, and our commitment to rural development and to the advancement of the social plan should, in many ways, direct us.

We are currently in a process of revising the structure of the department so as to ensure that we have the capacity to deliver on our core mandate and the unfolding challenges. It is evident, from our analysis, that the size of our department is not comparable with the volume of the work that we have to do, especially the energy component that was previously designated as the energy council. We are not asking for a bigger department, but what I will go on to explain is the creative way in which we wish to re-engineer our department so that we can continue to do more with less. I would like to extend a word of appreciation to and commend the staff of the Department of Minerals and Energy on the quality and quantity of work delivered with such limited capacity.

Our restructuring of the department will be guided by the following principles: relevance to the future; improved service delivery; being in a position to move staff in and around the department; and using project management skills to deliver on time on special projects as well as ensuring cost-effectiveness and quality of expenditure. To this end, a system of performance management and development has been developed to evaluate and identify both the performance and development needs of the employees in the department. This system is linked to our strategic plan, and we therefore envisage a management tool characterised by a structure and quality of cadre capable of being deployed right across the structure of the department.

The department is a technical and service institution charged with the provision of quality service to have a profound impact on the quality of life of our people, rich and poor alike. The department has to be professional, humane and technically sound. In addition, we also have a regulatory responsibility, which means that we should be able to manage those projects that we are entrusted with.

We therefore see the importance of restructuring ourselves into a diamond- shaped institution. The bulk of our staff, located in the stomach of the diamond, will be highly promotable and will be mobile vertically, horizontally and across all the work areas of the department. Our middle management, therefore, in the belly of this diamond, will be critical and will play a more permanent role. They will have to be creative in the implementation of policy, like the Greek god Dionysus. They will have to be good technocrats, like Apollo, and, like Athena, they must have a fighting spirit in the pursuance of the challenges of reconstruction and development.

Some of the training programmes that we have put in place in that regard include mineral law administration and environmental management, a pupil inspectors-of-mines programme, a gemology course for ourselves and for our SADC member countries, a scholarship that takes students to Malaysia on petroleum studies and various aspects of project management. I would like to indicate that I am taking time to explain this because I believe that only through having a sound institution with well-capacitated people in an enabling environment, can we deliver on the task that we are charged with.

The Ministry, together with the officials, has worked very hard to isolate the key areas on which we are expected to deliver. We are, indeed, poised to go through very exciting times and will, in the process, empower many of our younger cadres in the Department of Minerals and Energy to become well- rounded technocrats and leaders, and reward those senior managers who provide outstanding leadership and training opportunities to junior managers. We intend to give an annual award to those senior managers who are able to provide this leadership.

I would now like to look at our minerals area. Our new minerals policy can only be truly appreciated within the context of our unfortunate history. With the advent of mining law in South Africa, blacks were not allowed to participate fully, except as labourers. In the mining industry, we had laws on our Statute Book which expressly prevented and prohibited black people’s access to minerals, prospecting and mining rights.

For instance, the Mining Rights Act of 1967 provided that no prospecting permit should be issued to any coloured person or any association of coloured persons or any corporate body or company in which coloured persons held controlling interests, any black, or any nominee of such a black company. The provision was amended only in 1991; therefore it is barely 10 years that the prohibition of black participation in the minerals and mining industry was removed from our Statute Book.

Hon members should bear in mind that the Constitution of the Republic of South Africa requires Government to take legislative and other measures to redress the results of the racial discrimination of the past. It is, therefore, imperative that our mining laws must be able to address this legacy. In May 1998 my predecessor, Dr Penuell Maduna, uGubevu, gave a speech in which he set out the new mineral and mining policy for South Africa, a policy that I am also committed to, a policy that will, and should, lead to a new mineral resource dispensation in South Africa, a policy that should ensure that some of the aspects and remnants of the past are eradicated, and result in a mining dispensation that is different from that that was envisaged by Cecil Rhodes and perpetuated by his corporate offspring for generations and generations.

Since January last year a committee consisting of senior officials of the department has been converting the policy principles contained in the new minerals policy into legislation. I would like to highlight aspects of the proposed Bill on fundamental principles.

The most important principle contained in this chapter is that mineral resources are part of our patrimony, with the state as the custodian of our mineral resources, having the right to exercise full and permanent sovereignty. The issues of redress and socioeconomic development, the social responsibility of investors and sound environmental management are some of the key considerations. This proposed Bill also covers mineral resource management. In this section we establish the criteria for the application of the use-it-and-keep-it or use-it-or-lose-it principle. This simply means that the person who utilises his or her mineral rights through either prospecting or mining will be assured of security of tenure, while those who fail to do so will be prevented from holding mineral rights and thereby excluding new entrepreneurs. There will be submission of and access to prospecting and related information in order to ensure that information gathered by prospectors is not hoarded, but is made available to other entrepreneurs.

This proposed Bill will also cover mineral regulations. This section will ensure that there is a regulatory framework for the new proposed minerals and mining legislation, and it is through this section that we will also seek to entrench black economic empowerment and increase the chances for the creation of South African companies with both black and white working together in genuine partnerships. The proposed Bill will establish the mining and mineral resources development board, whose main function will be to advise the Minister on various aspects of minerals and mining legislation and policy. An aspect of this proposed Bill is transitional arrangements which, I know, most people in the industry are worried about. This is the core or the transformation thrust of the proposed Bill. The chapter that deals with this aspect settled the criteria to allow holders of rights relating to existing and active prospecting and mining operations to obtain the new form of prospecting or mining rights under the new dispensation. It also allows us to normalise and bring uniformity to the minerals and mining regulatory framework.

The proposed Bill will also repeal the current Diamonds Act and replace it with a section that will allow us to encourage beneficiation and, once and for all, to sort out the anomaly of the corporate governance of the SA Diamond Board, where those who are regulated sit on the board and regulate themselves. The Government is convinced that this will bring about major transformation in the industry, and I would like to thank all those who have worked with us in that respect.

In accordance with the resolutions of the Jobs Summit held in 1998 that we should hold sector summits, we had a mining summit on 25 and 26 February

1. The outcome of the summit was consensus on five sector strategies to achieve the stated objectives, including an industry promotion strategy in order to disseminate reliable information about the industry; a mineral beneficiation strategy to both add value to exports and increase employment levels; a strategy to manage the impact of cyclical volatility in the mining industry to reduce job losses and alleviate the social impact of downscaling when this does occur; and a co-ordinated rural development strategy to enhance the potential for alternative forms of employment. The Deputy Minister will say more about this, but I must highlight to members that that was one of the most meaningful exercises that we have gone through in this department.

Our associated institutions, in particular the Council for Geoscience and Mintek, will continue to play an important role, as they did during this summit, in order to make sure that we can effectively implement the recommendations. These are both well-established and internationally renowned institutions that will now be required to redirect their capacities towards our newly identified national objectives in promoting the minerals industry.

Progress on implementation is being made. Labour and the National Union of Mineworkers, in particular, have provided and displayed a maturity which has contributed to the progress that we are poised to make, and I would like to thank the portfolio committee for their contribution in this respect.

We are, indeed, focused in our objectives to advance the cause of the mining sector as a sunrise industry like never before. This, notwithstanding other developments such as the volatility of gold, the slump in coal and the rise of the new economy. The mining industry, contrary to the predictions of some prophets of doom, will outlive all of us in this House. If it is not grown, it has to be mined. Everything that we have is either grown or mined.

The microphone in front of me is mined, the spectacles hon members are wearing are mined, the body parts of the car that they drive are mined, their cellphones are mined, and the railings in this room are mined. I cannot believe that anybody could even think that mining is a sunset industry, because one will always need these things.

Ngithi kumaqabane masivumelane-ke ngokuthi izimbiwa ziyimpilo yethu. Ngeke ize iphele le mboni. Inekusasa eligqamile, njengoba ngisho nje. Lokho okungatshalwanga kwamila, kumbiwa emigodini. Okumbiwa phansi yikho okwakha izindlu, izinsimbi, imizimba yezimoto, omabonakude njalonjalo.

Ake ngidlulele engxakini. Ingxaki ekhona yingxaki yamadayimane. (Translation of Zulu paragraphs follows.)

[To my comrades I say we must agree that mineral resources are part and parcel of our lives. This industry will remain forever. I am sure that its future is bright with hope. What has not been planted has grown naturally. Here I am referring to the mines underground. Mineral resources are used to build houses, for iron, car bodies, television sets and many other things.

Let me focus on the problem. The problem that we have concerns diamonds.]

A campaign against illicit diamonds has been raging. The Fatal Transactions campaign run by European NGOs and some European governments, as well as by the UN Security Council, has highlighted the way revenue of diamond and petroleum products sales are being used to fund armed conflict in certain African countries, especially Angola and Sierra Leone.

Ngithi kumaqabane nginebhadi-ke ngoba zombili lezi mboni zikimi: uwoyela namadayimane lapho okugcwele khona otsotsi. [To my comrades I say I am unlucky because I have both the oil and diamond industries, which are full of thieves.]

The Ministers responsible for mining and minerals from diamond-producing countries in Africa met in South Africa in February. We weighed the different options that could be followed to find lasting solutions and to avert the potential threat of conflict that diamonds have on the economies of the producing countries.

As Ministers of energy, maybe we should also look at what could be done about the oil industry problem because, like diamonds, it also contributes negatively in some cases. We decided that a joint initiative of African diamond-producing countries be established to address the potential threat of conflict. We agreed, amongst others, on a set of regulatory monitoring systems, which African governments should be responsible for, in order to deal with illegal trade. As I am talking to hon members, in Kimberley, there is a two-day conference of international experts that we have convened in order to look at these issues. Our standpoint, as South Africa and other Southern African countries in particular, is that we need to enhance the mechanisms that we already have in place that govern this industry, instead of accepting ideas that are being forced onto us by northern countries. This will mean that the regulation of this industry is going to become very difficult. In addition, we do not want to fuel Afropessimism by insisting that diamonds coming from Africa be marked in a specific way, which would then distinguish them from diamonds coming from anywhere else in the world.

We also wish to ensure that the mining companies and shareholder interests in those companies are, in some way, aligned with the needs of the communities in which they operate and countries in which mines are allocated, in order to stop the poverty that causes people to become so desperate and to do some of the unthinkable things that are happening there. At this juncture I would also like to highlight the problems we are facing regarding the theft of metals and minerals in our mines. This poses a significant danger, as syndicates are now operating underground. We hope that the law-enforcement agencies will look into that.

I would like to move to energy. The development objective and vision that the Department of Minerals and Energy has for energy provision in this country is to ensure secure access to a balanced mix of alternative energy sources to last us for decades, in fact, for centuries. Our purpose is to satisfy the basic needs of our people by ensuring security of supply, affordability for domestic and commercial users, efficiency and equitable access to energy in those areas that are not currently serviced.

It is also our intention to improve the effectiveness of the electricity industry by consolidating fragmentation and facilitating increased competition over time. This can only be determined by our unique needs in South Africa, such as the integrated development strategy, the African renaissance, and our limited resources and access to energy sources. We want to make sure that we promote electricity development in the region and consolidate security of supply, not only for South Africa, not only for SADC, but for the continent.

Energy is the engine for economic growth and development for both the country and the region. South Africa enjoys the benefits of low-cost, reliable energy. That will always be a strategic advantage for our country. The electricity distribution industry is therefore a key to the entire economy, and it is critical to protect this. Any changes that we make cannot give up these established gains.

Recently, in a book launched by the National Electricity Regulator, or NER, to mark 100 years of electricity in South Africa, we were shown very fascinating insights regarding the role and the relationship between energy and mining, and the important role that energy, and affordable energy in particular, has played in ensuring that we have been able to develop our industries and especially mining. We are also lucky that we have a very effective utility, Eskom. It is internationally known and locally acknowledged as a major top-performing business. Its technical performance is amongst the best of the best, and its price is amongst the lowest in the world, underpinning the viability of South African industry. It is also highly regarded by investors and plays a significant socioeconomic role in the region.

Eskom has just turned on their 2 000th switch for the year 2000. That, in many ways, has demonstrated their capability. Government strongly supports Eskom’s strategic intent to be a pre-eminent African energy and related services business of global stature, and to ensure that they become the preferred partner in Africa and internationally. This is very strategic and we want to ensure that, in the process of doing that, we introduce competition at the same time and Eskom is also able to play a role in assisting in the areas where we have not reached.

We have now moved from a number-driven electrification programme to a strategy-driven approach. It is in this context that our national electrification programme is evolving. Our plans are to match those of housing, of water, of telecommunications and of the Department of Trade and Industry, in order to ensure that energy is an engine for local economic development and that we are able to bring energy to the 3 million households which still do not have energy, in such a way that we enhance the quality of their lives and their local economies.

In realising the Government’s policy of universal access to energy, as contained in the White Paper, it has become imperative that alternative, nongrid electrification technologies be considered as an integral part of our integrated energy plan for large-scale application. The Deputy Minister will address this. Electricity distribution restructuring is proceeding. Consultants were appointed.

Ngiyabonga kuBhungane ngokuthi angisize ngalaba bafana ukuze ukwazi ukuthi lo msebenzi wami uqhubeke. Siyabonga kakhulu. [I would like to thank Bhungane for assisting me with these boys so as to enable me to continue with my work. Thank you very much.]

The electricity sector is initiating a new wave of technological innovation as it faces the challenge of meeting South Africa’s economic needs beyond the first decade of this century. To meet these needs in the most competitive, cost-effective and environmentally sustainable manner, Eskom has, over the last years, been developing its research and development capacity to inform its integrated electricity planning process, and we hope that will make a contribution.

In particular, we would want to indicate the appreciation that Government has for Eskom’s efficient lightning initiative, aimed at reducing electricity demand, increasing efficiency and reducing emission through the promotion of compact fluorescent light bulbs throughout South Africa. In their pigeonholes, hon members will find globes which light eternally, courtesy of Eskom, as a demonstration of the technologies that are evolving in order to save energy. [Applause.]

I would like now to move to another issue, and in the process give hon members exciting news. Yesterday, at 22:30, oil started flowing from South Africa’s second oil field at a rate of 10 500 barrels per day. This represents approximately 3% of South Africa’s crude oil requirements. The Oryx field is expected to produce oil for at least three years. Soekor Exploration and Production, South Africa’s state-owned oil company, developed the field in record time and within the budget. I am glad that we have been able to achieve this. [Applause.]

The liquid fuels industry presents Government with a number of policy challenges, which were outlined in the recently published White Paper. The main policy challenges for this sector include the following: an efficient and internationally competitive liquid fuels industry; an equitable balance between the interests of the industry, participants and consumers; an industry supportive of Government’s broader social and economic goals; and a meaningful inclusion of historically disadvantaged groups.

The Government believes that the desired attributes for the industry will ultimately be met in an environment of minimal Government intervention. However, the environment will be regulated. Therefore we are talking about deregulation in a regulated industry and reregulation. A six-person task team has been appointed, and must look into these matters to ensure that 25% of the industry is ceded to black economic empowerment, which must include women. This six-person task team will include Government, the SA Petroleum Industry Association or Sapia and the African Minerals and Energy Forum, or Amef.

The past year has been very difficult for this sector, especially for consumers of petrol, from a pricing point of view. Oil prices rose by 300%, and the rand-dollar exchange rate declined by 7,9%. Despite this, over the same period the petrol price only rose by 28%. So even though members and the general population felt that the petrol price was very high, we did our best to ensure that we cushioned, to some extent, that pain. We, however, had serious challenges to the structure of the oil companies in South Africa. The ownership structure of oil companies poses a major constraint to attaining empowerment objectives, to some extent, and that is why that has to be managed. In general, the major oil companies operating in South Africa are not South African owned, nor do they make shares available for local purchase. Only Sasol is South African, while Total has 42% South African ownership. Therefore there is a need to find a mechanism that will ensure that the oil industry complies with the aspirations of the people of South Africa.

Black companies currently only hold less than 3,7% of the petroleum products market. Much of this has been in form of bulk sales to big clients. Adjusting the figures to a worldwide 20%-stake in Petronas/Engen, the figure increases to 9%, which is still insignificant. This is why the black economic empowerment process, which is needed prior to any change in regulation, is so critical.

With regard to oil and gas, the hard work done by the petroleum agency is showing signs of paying dividends. Recently, Forest Oil announced that they had found a significant gas field offshore on the west coast - about 80km offshore. We need to look at this with a lot of interest, because it could dramatically change the profile of our energy supply.

As promised in the White Paper, we are reorganising the Central Energy Fund. The national oil company will have been put together by the end of July, because work there is proceeding. Soekor and Mossgas are going to form one company - a commercialised company under the Central Energy Fund, while the rest of the CEF will be a company that will look after the strategic interests of the country, regulatory matters and development. We are, therefore, encouraged that this will ensure that the resources that are there in the Central Energy Fund will be used effectively for the people of South Africa.

This department has done a lot of work in the area of rural development, especially focusing on those areas that are dense labour-sending areas, the areas to which miners go back once they are retrenched. I am pleased that there has been co-operation between the industry, the unions and Government in order to ensure that we are able to achieve that. I would like to thank the many departments that have worked with us in that respect and, in particular, the many workers and NGOs who continue to assist us in order to realise this.

In conclusion, I would like to thank my Deputy Minister for her cameraderie and wit; my director-general for unfailing loyalty and leadership; all our senior managers who are workaholics; all our staff at all levels; colleagues and leaders in associated institutions; colleagues in labour and business; the research institutions the Energy Development Research Centre, the Mineral and Energy Policy Centre and the Institute for Policy and Social Research; my staff in the Ministry for their amazing capacity to tolerate me and be ever ready to serve, literally, at any hour of the day; my family for their sacrifice and support; my parents in Durban and at iXesi; and the committee, as well as my chairperson, who is so original and so exciting to work with. [Applause.]

Mnuz D M NKOSI: Sihlalo, oNgqongqoshe namaSekela, Sekela Mongameli, ngiyanibingelela. ISabiwomali 21 seziMbiwa nezaMandla siyasemukela. Kukhona isicelo sokuthi izindleko, izikweleti namacala ngenunzi kwedluliselwe futhi kwehlukaniswe kwisabelo sezimali.

UNgqongqoshe ophethe izimali kumele abheke labo okufanele bakhokhelwe ngokwenza umsebenzi. Uhlelo olusha lukaHulumeni luzokwenza ukuthi sibheke iziphakamiso zokuguqula indlela umnyango omi ngayo. Kufanele ukuthi uMnyango wezokuMbiwa Phansi nezaMandla ube ngendlela yokuthi sikwazi ukufeza izidingo zabantu nomnotho wezwe.

Ikomidi lizoxoxisana ngokuthi iSabiwozimali sisebenze esikhathini esingaphezulu konyaka ngokubonisana ngohlaka lweSikhathi esiPhakathi Nendawo lokuSetshenziswa kweziMali [Medium-Term Expenditure Framework] okuzodlulela eminyakeni emithathu eSabelweni seziMali. Okubalulekile engifuna ukukhuluma ngakho ngumsebenzi wekomidi. Ngokubambisana, singamalungu ekomidi, sikwazile ukuvakashela abasafufusa kwabezimayini ezindaweni zaKwaZulu-Natali, eNyakatho-Kapa kanye naseMpumalanga. Esikubonile kuyasisiza ukuthi sibe nolwazi olungcono ngempilo yabantu bakithi. Kunesidingo sokuthi abantu abafuna ukuziphilisa ngezimbiwa banikezwe ulwazi, izinto zokusebenza, amakhono kanye nemali.

Siyakujabulela ukubonisana okufana nokweBakubung mining initiative futhi sikhuthaza ukuthi uNgqongqoshe akwakhele phezu kokubonisana ukuthuthukisa umnotho wezwe lakithi. Ngibonga umoya omuhle ezinkampanini ezinkulu ezinjengo-Chamber of Mines no-Billiton nabanye ngokuzosiza ukuthi sikwazi ukuxoxisana ngempumelelo.

Abantu abamnyama nabesifazane kufanele basebenze ngokusemthethweni yikhona uHulumeni ezothola intela. Abebayo nabangasebenzi ngokomthetho bazothola ithuba lokuthi bakhe umnotho ngokubambisana noHulumeni. Ngizophakamisa ekomidini esikhathini esilandelayo ukuthi izinkampani ezintsha ezifana no- ERPM no-Rainbow Minerals, oKuyasa kanye nezinye, zikwazi ukuxoxisana nekomidi ukubhekelela ikusasa labantu abamnyama nabesifazane ezimayini.

Ngesonto eledlule ikomidi lavakashela emigodini yegolide. Ezinye zezinto ezimqoka ezivelile ngukuphucula intengo yezimbiwa kanye namalungelo ezimbiwa, ezempilo nezokuphepha emgodini. Ngabe uNgqongqoshe wezemiSebenzi uzokuthatha konke yini lokhu na? Kukhona amahlebezi athi iKhabhinethi seyisithathile isinqumo ngalokho. Silindele ukubonisana noNgqongqoshe namalungu ekomidi ngeLebowa Minerals Trust futhi sizimisele ukubambisana nayo yonke imiphakathi nezinhlangano ezithintekayo.

Kuzobaluleka ukuthi uNgqongqoshe noMnyango wezokuMbiwa Phansi nezaMandla balungiselele ukuthi sibonisane ngendaba yentengo kaphethilolo kanye nodizili nopharafini. Okunye ngukuthuthukisa isimo somnotho kwabamnyama ngokomgomo kaHulumeni wokuthi u-25% unikezwe abantu abamnyama.

Mayelana nowoyela ikomidi lePhalamende, ngokombiko womVikeli womPhakathi, libonisana ngendlela yokuxazulula impikiswano phakathi kukaQabane uMaduna owayenguNgqongqoshe wezokuMbiwa Phansi nezaMandla nehhovisi likamCwaningi- Jikelele wamaBhuku. Ziningi izinto ezibalulekile ezivelile malungana nomkhakha wemboni kawoyela okufanele sizibheke. Ngicela uNgqongqoshe aphawule.

Kuqala unyaka, mhla ziyi-15,16 ne-18 kuFebhuwari 2000, saxoxisana nezakhiwo esisebenzisana nazo kanye neziGungu zeSayensi. Kuyacaca ukuthi umsebenzi usemningi. Sidinga ucwaningo ngezidingo zezwe nokuthuthukisa amakhono abantu. [Kwaphela isikhathi.] [Ihlombe.] (Translation of Zulu speech follows.)

[Mr D M NKOSI: Chairperson, I take pleasure in saluting hon Ministers, their Deputies and the hon the Deputy President. We accept Vote No 21 of the Department of Minerals and Energy. There is a request to reduce costs, debts and cases of nuclear energy and that these must not be included in the budget.

The hon the Minister of Finance should consider those who should be paid for doing the job. The Government’s new programme will enable us to look at the proposals to change the way the Department of Minerals and Energy is structured. It should be structured in a way that enables us to focus on people’s needs and on the economy of our country.

The portfolio committee will discuss how the budget was used a year ago by referring to the Medium-Term Expenditure Framework which will be transferred to a three-year budget. The important thing I want to talk about is the work of the committee. As a committee we were able to visit small miners in KwaZulu-Natal, the Western Cape and Mpumalanga. What we have seen has assisted us in getting a clear picture of the lives of our people. There is a need to empower those who want to undertake a mining venture with knowledge, implements, skills and money.

We are happy about the discussions like the one of the Bakubung initiative. We encourage the hon the Minister to establish the economy of our country on the foundation of consultation. I would like to express our gratitude for the good spirit big companies like the Chamber of Mines, Billiton and others have shown by making our negotiations with them a success.

Black people and women should be officially employed so that the Government will be able to tax them. Thieves and unofficially employed people will then have an opportunity to build the economy together with the Government. Next time I will propose to the committee that new companies like ERPM, Rainbow Minerals, Kuyasa and many others should negotiate with committees to enable them to look at future opportunities for black people and women in mining.

Last week the committee visited the gold mines. Important issues that were discussed included the need to improve the price of mineral items, mineral rights and health and safety in mines. Will the hon the Minister of Labour accept all these proposals? There are rumours that the Cabinet has already taken a decision on this matter. We are waiting for a chance to negotiate with the hon the Minister about the Lebowa Minerals Trust. Again, we are prepared to co-operate with all communities and organisations concerned. It will be important for the hon the Minister and the Department of Minerals and Energy to be prepared to enable us to negotiate successfully about the price of petrol, diesel and paraffin. Another issue is that of improving the economic situation of black people in line with the Government’s policy that says 25% of the economy should be given to black people.

Regarding oil, according to the Public Protector, the parliamentary committee will try to resolve the split between the former Minister of Minerals and Energy, Comrade Maduna, and the office of the Auditor-General. There are many issues that have cropped up regarding the oil industry which need to be discussed. I want the hon the Minister to commitment on this.

Early this year, from 15, 16 to 18 February, we, together with the Science Council, negotiated with structures with which we work. It is clear that there is still a lot to be done. Research into people’s needs and into how to improve people’s skills must be undertaken. [Time expired.] [Applause.]]

Mr I O DAVIDSON: Chairperson, I note the Minister’s comments about the new minerals and energy Bill which is in the pipeline. I would like to say this to the Minister: The DP is very conscious of the need for black empowerment in the mining industry, as well as the needs of small-scale miners in that regard. However, we are also very conscious of rights entrenched in the Constitution, and accordingly we will be monitoring how the Minister reconciles these two competing interests when the Bill comes before the House.

I wish to focus in this debate on the liquid fuels industry and the anomalies in the pricing structure which lead to higher fuel prices. In April, as the Minister said, we saw the fuel price in South Africa jump 35 cents, to a record of 322 cents per litre. We accept, as the Minister has pointed out, that the fuel price is sensitive to the dollar price of crude oil and therefore, inasmuch as the dollar price of Brent has hit record levels in recent months, the blame cannot be shouldered entirely by Government. However, fuel is probably the last commodity vital to the economy which is still regulated and it is clear that the way prices are determined has the effect of boosting the consumer price of fuel.

We have to ask ourselves a simple question: Why is fuel at the pump in South Africa 50 to 60 cents cheaper in neighbouring states, despite the fact that they do not have a synfuel producer in the form of Sasol and Mossgas, which produce 40% of our fuel requirements. These anomalies need to be answered. Part of the answer lies, of course, in the fact that our oil industry is regulated and structured in a way that has produced effective monopolies in the supply chain.

The first anomaly, on which I am pleased to say Government has finally acted, is the 8 cents a litre levy for the Equalisation Fund, which was used to subsidise Sasol and Mossgas when the oil price dropped below certain levels. This direct subsidy came to about R1,5 billion a year, but because synfuel makes up 40% of all fuel produced in South Africa, and because the levy is paid on all fuel produced in South Africa, Sasol and Mossgas received not just 8 cents a litre, but an effective 20 cents a litre on their own production. If one looks at the way in which Sasol has been making profits over the past few years, one sees that it has been well over R8 billion over the past decade.

The original agreement which provided for the subsidy was designed, and rightly so, to make Sasol viable in the event of low crude oil prices. But the agreement also provided for Sasol to contribute to the fund when the dollar price of oil was above a certain level. The original agreement, effective from 1 July 1989, provided for Sasol to pay back this protection to the Central Energy Fund, that is 25% of additional profits before taxation, when the crude oil price rose above the critical level, at that stage $28,70. This had to be the case in order to make sure that there was a proper distribution of the risk in that industry. Since the ANC Government came to power, no contribution has been received from Sasol, despite the fact that the dollar price of oil has been above this critical level. Government needs to explain why this vital clause in the agreement has suddenly disappeared, to the detriment of the consumer.

Also in urgent need of attention is the distortion caused by the arbitrary price fixing by monopolies such as the pipeline and rail systems. While we are talking about that, we also need to ensure level playing fields in respect of not only the pipeline and rail systems but in terms of road transport as well. We have to make sure that they compete on level playing fields in terms of the distribution of fuel throughout South Africa. To hold down costs throughout the country is vital. The cost of transporting fuel has to be competitive and tariffs have to be set at realistic levels, not the arbitrary levels we have at the moment.

Another anomaly that needs to be rectified - and it goes back to Sasol - is the 4 cents a litre customs and excise duty on fuel - I repeat, customs and excise duty - even though 40% of the country’s requirement is produced locally by Sasol and Mossgas. That is an anomaly that Government has to explain.

Finally, the status and enforceability of the rationalisation plan needs to be discussed as a matter of urgency. Petrol stations are springing up all over the place, resulting in uneconomic levels of pump throughput, resulting again in an average loss for fuel retailers of something in the region of 0,7 cents a litre. This is just plainly unsustainable and adds to the inefficiency of the industry, and ultimately a further demand for higher fuel prices at the pump. Petrol stations are effectively kept solvent by cross-subsidisation from forecourt boutiques or, more worryingly, disguised vertical integration by the major oil companies.

Clearly the industry has to be restructured and reregulated, as the Minister says, as a matter of urgency. Our Government accepts this. However, the White Paper sets certain milestones before this can take place

• one of them, as the Minister has reiterated, being the 25% black empowerment presence in the industry. The DP has no problem with black empowerment in this industry, but this has proved to be a major difficulty and a major obstacle to the much-needed reregulation of the industry.

During the days when the White Paper was drawn up, the country was experiencing a boom in black empowerment companies. Conditions today are much more difficult and those companies are finding it difficult to raise the necessary risk capital, even more so in the case of the oil industry where returns on capital are at the lowest level in a decade - down from 11,8% in 1990 to 4,5% in 1998. Now no entrepreneur is going to invest in an industry where levels are so low and where the length of time that one is going to have to wait in order to get that return is very long.

In this connection, I think even Government itself has recognised problems there, and that is why the black empowerment commission … The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon member, your time has expired.

Mr I O DAVIDSON: We look forward to the Minister reregulating this industry as a matter or urgency.

Mr J H NASH: Mr Chairperson, Deputy President, Minister and Deputy Minister, I am very happy to be able to address this House today. I am very pleased that we have decided to utilise the bulk of the budget to ensure rural development. Energy is a very important aspect of rural development to ensure the success of modern health and technology.

Today I want to deal with other energy forms important for rural development, and in particular with paraffin and gas. I have always contended that the paraffin and liquid petroleum gas prices should not be linked to the inbound landed costs or IBLC and international produce prices, as these products are produced through local refining, and not imported as the import parity pricing system currently implies.

Paraffin is one of the most important components of energy in the rural areas. What has recently been noticeable is that when the petrol price increased by 6%, the diesel price by 9%, the paraffin price rise was far larger at approximately 14%. It is not possible to see how the paraffin price increase is the highest, even though it is refined from the same barrel with the same rand-dollar exchange rate.

This is the price that affects the rural communities most, as it is the fuel of the poor. The oil companies do not seem to be willing to make fuel affordable for the poor. Even the retail firms are exploiting the situation, as the large chain stores charge prices far in excess of the suggested price. This is as a result of the fact that the Department of Minerals and Energy deregulated the price of five-litre paraffin cans. After the deregulation of five-litre cans, the paraffin price seems to be higher than when it was a regulated commodity.

This should be a lesson to the DP, which naively believes that deregulation is the universal panacea to high commodity prices. Then again, it is by historical accident that the DP is in the opposition benches, as with its future vision for the industry, it should rather have been a liquid petroleum gas company, because its proposals are pure hot air and gas. [Laughter.] The paraffin price is not transparent and this needs to change, as the secrecy of the past should not dominate the industry in the present. [Interjections.] I want to give you a drink of paraffin, perhaps! [Laughter.]

In other countries, liquid petroleum gas is a third of the price that it costs in South Africa. Here again, the high price is due to the problematic pricing formula for liquid petroleum gas. The oil company, in making exorbitant profits from liquid petroleum gas, puts it out of reach of the people who need it most. Our new national gas discovery off the west and east coasts should provide an impetus for cheaper gas to the Cape rural communities. As this is not imported gas, Government should give priority to these gasfields. In the final analysis, gas is a product of the energy chain which is key to rural development, and should become a major focus area for Government. Government should seriously consider re-examining the IBLC pricing mechanism in order to effect changes to the apartheid pricing formula which overrewarded the oil companies at the expense of the consumer.

Black economic empowerment in the oil industry has not yet occurred in a meaningful way owing to the reluctance on the part of the oil industry to effect genuine empowerment. [Interjections.] While some oil companies claim that in the retail sector the percentage of black dealers is close to the White Paper on Black Economic Empowerment’s target, the reality is still that of apartheid. Lucrative sites are still based on apartheid norms as dealers reflect the former Group Areas Act. Some oil companies bleed black service station dealers dry through the erosion of dealer margins and by unfairly increasing the cost of leases. They also do not hesitate to take prominent members of the community to court as part of the process of squeezing out black dealers. This is part of a strategy tending towards vertical integration. [Interjections.] In the near future, Government will have to call for an inquiry into conditions of black service station dealers, which might include public hearings. The time for change in the liquid fuel industry is now.

Electrification is also a matter which needs to be examined. The fact that we are trying to use low levels of power when we should be using 20 kilowatts of power, should come to an end. The supposed rationale for this is that it is expensive to install power lines. The long-term quality of electrification programmes needs to be carefully assessed.

I have been pleading for a long time now for a poverty tariff, and this is what I want to end off with today. Surely pensioners and the unemployed can benefit from a tariff which is set for the poor. We are skirting around this matter, playing the fool around pricing. We are sick and tired of hearing that the poor must suffer. In a period of enlightenment, we cannot take seriously the perspective of parties who believe that deregulation will solve the apartheid legacy. [Time expired.] [Applause.]

Mr E J LUCAS: Madam Speaker, Deputy President, Ministers present and hon members, the Minerals and Energy portfolio is one of those portfolios which could make South Africa realise its full economic potential. It has to be recognised that this department has had three Ministers within the past six years. The present Minister is now saddled with the tremendous task of delivering to the people. In spite of the difficult decisions that will have to be taken, we appear to be facing in the right direction.

I believe that if the Department of Minerals and Energy and the portfolio committee continue to work together, as we have in the past, we can achieve magnificent results. The IFP will continue vigorously to represent its view, but also to support all solid and good policies. What is of great significance is that the department’s share of the total budget, incorporating the allocations to the associated institutions, has again increased in the current financial year. The ratio of allocation currently stands at 67% to the associated institutions and 33% to the department itself, whereas it was 70% to 30% in the previous financial year. Although the difference in ratio of allocation appears small, it is highly significant, as it continues a trend that was established in 1996. The trend should be encouraged, as it has long been argued that the associated institutions represent too large a drain on the resources of the department.

It should be noted that the amount allocated to the repayment of nuclear energy loans has decreased by about R49 million, as opposed to the increase of about R62 million in fiscal year 1999-2000. This is a welcome reduction, but it should be kept in mind that the loan repayment amounts vary from year to year due to the different repayment schedules of the financial institutions involved.

The allocation for the next financial year, 2001-02, might therefore again represent an increase in this allocation. While it is accepted that these loans have to be repaid, it remains disconcerting that the repayments continue to represent a financial drain on the resources of the department. It is recommended that the department be assisted in its endeavours to move the loan repayments to another state department, for instance the Department of Finance or the Department of State Expenditure. In this manner the skewing effect that the loans have on the budget of the Department of Minerals and Energy would be removed and a more accurate picture would emerge.

The increase of some R8,7 million in the budget allocation for the promotion of mine safety and health should be applauded, as it demonstrates the department’s commitment to improving the work environment of South Africa’s mineworkers. In the previous financial year this allocation was increased by R2 million, and it is to be hoped that further increases will follow in the years to come. What is really required is increased allocations to the training of mine inspectors and to the system of ensuring compliance with the Mine Health and Safety Act. Without the latter two aspects being strenghtened, it is futile to expect a dramatic drop in accident and fatality rates on South African mines.

The allocation to mineral development has been increased by R6,7 million, but again most of this increase will go towards the improvement of conditions of service. Part of the increase will be used for expenditure on developing the small-scale mining sector. This aspect should be supported.

A matter falling under the minerals and energy umbrella is the fuel pricing mechanism used in South Africa. It is well known that we have no control over the major inputs to the petrol and diesel price, that is, international oil prices and our foreign exchange rates against the dollar. But it is equally well known that more than 50% of the fuel price paid by the customer is due to Government taxes and levies on the basic price.

The Department of Minerals and Energy is currently reviewing the pricing mechanism, but it is not expected that this process will lead to major savings for the customer. The only way to achieve the latter would be to reduce the portion of Government taxes and levies, but in order to do this alternative sources of revenue should be found. One alternative would be that the income from fuel taxes and levies be replaced from the National Revenue Fund, to which all South Africans contribute through their personal and corporate taxes. This would, no doubt, create a huge dilemma for the Minister of Finance, but would improve tax collection by the SA Revenue Service.

It should be noted that the budget allocation to Mintek and the Council for Geoscience has decreased by R4 million and R3 million respectively. The main reason for the decrease is the process followed by the Department of Arts, Culture, Science and Technology when deciding the allocations of the various science councils. The so-called competitive funding system has a high premium, and is already bringing in additional revenue that the state would otherwise not have had.

However, to return to the decreased allocation to Mintek, it should be noted that new technology is urgently required in order for South African mining to position itself for the future. This is especially true in the case of gold mining, in which depths of mining are ever increasing. If South African gold mines do not possess the technology to mine gold at ultra-deep levels, it could reasonably be expected that some of the biggest gold producers would have close some of their operations in the next 10 to 20 years.

This will have a major negative impact on employment levels and revenue generation. Mintek is ideally placed to tackle the question of deep-level mining, in conjunction with private mining companies, and its budget allocation should, therefore, in future be increased for this specific purpose.

Overall the 2000-01 budget of the Department of Minerals and Energy is supported by the IFP, with the reservations I have mentioned. The budget shows a definite commitment to fiscal discipline and gives effectiveness to Government’s recognition that the mining and energy sectors are important role-players in the growth and development of the South African economy. [Applause.]

Mr S K LOUW: Madam Speaker, allow me to focus on a very important issue in our country - the mining industry, which is supported by an extensive and diversified resource base and has, since its inception, been a cornerstone of South Africa’s economy.

While we have been looking with a critical eye at the activities in the mines, the gold price has been on the edge. The impact that the gold price could have on marginal mines could lead to a devastating situation in the workplace, and raise alarming concerns for companies having to deal with the problem of restructuring the workforce. The legacy of retrenchment remains behind as a festering social problem for our country.

The changes which have come about in our country make it necessary to prepare the industry for the challenges which are facing all South Africans as we approach the 21st African century. I want to commend the Minister on her statement at the opening of the mining summit:

In the 21st century Africa is not going to allow a white mining industry to continue.

But while we are preparing ourselves to take on these challenges we must focus on the demanding aspects of the mines. We are producing gold in our country, but what we desperately need to work on is the liberalisation of gold in our country. The sales of gold will definitely enhance the gold price as we would then be able to allow the regional authorities to appoint agencies and sell gold and platinum on the domestic market for the new entrepreneurs in the jewellery industry. Through this process, we shall be able to jack up the beneficiation programme for the disadvantaged people.

I fully agree that the Minister and the tripartite structure should establish a beneficiation committee that could drive this programme. It is also important to know that the tourist, as well as the disadvantaged Atteridgeville entrepreneurial jeweller, would certainly welcome this opportunity.

I am from a mining constituency and I would be failing in my duty if I did not touch on the nerve centre of the mining industry, that is health and safety. My constituency had to face a serious mining fatality and witnessed how the enthusiasm of the miners was nowhere to be found. The morale and the comradely working spirit were lacking, being threatened by the cloud of death hanging over the mining community. The rescue workers and medics were emotionally moved as they struggled to pull out the bodies of the deceased on stretchers at the Mponeng and ARMS gold mine in Orkney. I want to salute those comrades, whom we remember today, for the role they played in the restructuring of the mining industry through their untimely deaths and severe injuries.

I know that the department has been historically underresourced, and needs to increase its budget to allocate personnel and resources to integrate and collaborate with departments such as Housing, Health, Environmental Affairs and Tourism, and Transport on cross-cutting policy challenges. We must bear in mind that the responsibility for safety can no longer be passed onto the shoulders of mine owners and mine inspectors. Responsibility should be borne by the workers as part of the alliance agreement. We have to move forward with much more renewal in the areas of health and safety, and we must continue to do so in order to maintain the low fatality rate and remain on top of issues. It is absolutely important for the workers to know that the involvement of the employees is critical. The employees must create passion with regard to safety in the hearts and minds of people.

The continuation of training models and safety must be part of our pride in the workplace. The alliance should know that, together, we shall be able to reach our goal for improving safety. We must create a culture of involvement through which the capabilities and competence of employees are lifted. This I observed during our study group tour at the West Driefontein mine, where a trusting culture is developed through leadership credibility.

The creation and maintenance of an efficient tripartite structure is built upon sufficient planning and appropriate strategy direction. The need to train and establish proto teams to rescue the injured is critical for each mine. This was an emotional issue for the rescue teams that were brought in from other mines to the ARMS gold mine in Orkney.

Miners are familiar with the environment at their mines and would be in a position to identify the place of the accident more easily and faster, and even shorten the delaying process of searching for those in need of rescue and any casualties, and injuries can be attended to immediately. It will also be cost-effective, because the incentives and all other bonuses for a proto team from the other mines would be cut out. This effort should lead to a sensible implementation of the Mine Health and Safety Act which should embody the appropriate balances and clearly define acceptable practice and standards.

In addition, mines and mining groups should adopt a compassionate but affordable corporate policy on HIV/Aids. Our efforts and fight against this deadly disease should be doubled. [Time expired.] [Applause.]

Mr A H NEL: Madam Speaker, there are a lot of things that the hon the Minister is doing correctly, and she is, to my mind, a great improvement on the previous Minister. [Interjections.] I find her a reasonable and moderate person who listens to all sides of an argument before making a decision.

There is also a lot of positive development happening in our mining industry. I was impressed by the discussion at the mining summit between Government, mine owners and the unions. Although robust, it was in the interests of building a minerals industry that will enhance competitiveness and increase the contribution to the development of our country, as well as the welfare of employees.

I agree with the Minister that the mining industry cannot only be a white- owned industry. The Minister must make use of the positive attitude and actions of the Chamber of Mines to facilitate a better distribution of the mineral resources of our country.

The Minister has spoken on various occasions, and also today, about the use- it-or-lose-it principle. It is essential that Government spells out exactly what is meant by that. Does it mean that people who paid for the mineral rights they own will be compensated when they do not use them and lose them? Or does it mean that Government can just regulate on the matter, in which case it means that Government does not see mineral rights as property rights? South Africa can only lose if a perception is created that people would not be paid for that to which they hold legal title.

We are always criticised for saying that property rights and vested interests and rights must be respected. The perception is that we only fight for white rights and interests. Of course this is not true. We fight for the right of an individual, now or in 10 years’ time, to hold title, and that the right be respected. If we succeed, and we must, in getting a better distribution of the natural resources of our country, then in 10 years’ time most people who will have property rights will be black. Respect for property rights now is as important as it will be in 10 years’s time.

Daar is ‘n opbloei in klein mynbou en van beginners in die mynbedryf. Daarom moet ons sorg dat die toetrede tot die bedryf vergemaklik word. In ‘n onlangse vraag aan die Minister het ek gevra hoe lank dit neem om ‘n prospekteerpermit te bekom. Die antwoord was drie tot vier maande. Daarom is dit onaanvaarbaar dat twee persone van Komaggas in Namakwaland, wat reeds in 1997 om prospekteerpermitte aansoek gedoen het, nou nog niks gehoor het nie. My inligting is dat hierdie aansoek op die Minister vir Landbou en Grondsake se lessenaar lê. Dit is mos totaal onaanvaarbaar. Dit is dan juis dié mense wat ons wil help om die bedryf te betree. (Translation of Afrikaans paragraph follows.)

[There is a resurgence in small mining and beginners in the mining industry. That is why we must ensure that entry to the industry is facilitated. In a recent question to the Minister I asked how long it took to obtain a prospecting permit. The reply was three to four months. It is therefore unacceptable that two persons from Komaggas in Namakwaland, who applied for prospecting permits in 1997, have still not heard anything. My information is that this application is lying on the desk of the Minister for Agriculture and Land Affairs. Surely this is totally unacceptable. It is precisely these people that we want to assist to enter the industry.]

I now want to come to a very serious matter. In November last year, I asked the Minister a question about the investigation of the Office for Serious Economic Offences into the appointment of Emmanuel Shaw to the office of chairman of the Central Energy Fund. The reply was that the investigation had not yet been concluded, and that - and I quote:

A statement from the former Minister of Minerals and Energy was requested on 28 July, and is still being awaited.

A statement from the former Minister of Minerals and Energy will be necessary before the investigation can be concluded.

In February this year I asked whether the statement of the former Minister was still being awaited. The reply, under the heading ``A Draft Reply for Consideration’’, that reached me was, and I quote:

The perception that a statement which is supposed to be made by my predecessor, Mr Maduna, in this matter is essential for the finalisation of the investigations, is incorrect and misleading.

The reply further stated that Mr Maduna had already discussed this matter with an official of the Office for Serious Economic Offences in August last year and that it had been indicated that that statement was not a prerequisite for the finalisation of the investigation.

What are the facts? It is obvious that the replies to essentially the same question differ quite substantially. Secondly, both replies were tabled in Parliament under the name of the Minister. The question before us, then, is not whether, but when, the House was misled. Was it in November last year or in February this year?

I know that this is a very serious allegation and I am not making it lightly. I said in the beginning that I found the Minister a moderate and reasonable person, so it is very difficult for me to understand this out-of- character behaviour. My guess is that the question of February was referred to the previous Minister and that the reply emanated from him.

Can it be that, while the Minister was out of the country, this reply was sent to me without her seeing it and that that is why it is called ``A Draft Reply for Consideration’’? Whatever the case, the fact is that the House was misled. In her own words the Minister said, in February, that what she had said in November was incorrect and misleading. The Minister must realise that her name is at stake here. The sooner she explains everything and/or apologises, the better. [Applause.]

Ms M M RAMAKABA-LESIEA: Madam Speaker, hon members, fellow members, it gives me pleasure and pride to speak in this debate today. I am proud because, as a woman from the dusty township of Guguletu, I never imagined myself standing at this podium speaking on the Vote of Minerals and Energy. I feel pleasure because after my many years of struggle, I stand here with confidence and look back at the achievements of my Government in just six years of existence.

My growing up in Elsie’s River and removal later, owing to the Group Areas Act, to Guguletu exposed me to the poor provision of electricity resources by the apartheid regime. All the households in Guguletu were built without any electricity, there being poor street lighting only. In our houses, our source of energy was paraffin and wood and coal stoves, whose devastation on the environment and, therefore, on one’s health can still be felt today.

There was no will at all to provide in the energy needs of the poor majority. Firstly, subsidies were given to white farmers under the apartheid regime. Energy policy was governed primarily by the desire for greater energy security, hence the government spent billions of rands on Sasol and Mossgas. Even here, the overriding desire was not to provide energy to people, but to ensure that the apartheid war machine was not found wanting. We know now how this has devastatingly affected our economy. Secondly, everything was done under strict security. The curtain was the National Key Points Act, which made it a crime for people to go close to energy installations.

Our Government today is presented with serious challenges and yet with incredible opportunities. There is a dire need to improve effective service delivery to the entire country, the chief challenges being the transformation and restructuring of the minerals and energy industry as a whole.

Energy provision is essential and very important for the development of our country. The Government has evolved a national electrification strategy whose focus is to recognise that access to a minimum electricity service is an essential development tool. The objectives of this strategy are, firstly, to give previously disadvantaged people and small businesses access to electricity in order to enhance their quality of life and boost economic development; secondly, to improve the effectiveness of the electricity industry by consolidating the fragmentation and facilitating increased competition; and, thirdly, to promote regional electricity development.

Another key focus which we should not lose sight of when we talk about energy, in general, and electricity, in particular, is the focus on women. This should not be seen only in terms of access to electricity, but the actual role women should play in industry. I just want to touch on access to electricity by rural women in particular. We have in the past talked about the triple oppression of women, that is, women oppressed as a class, as blacks and as women. The life of women in the townships and rural areas captures this triple oppression even today. When one looks at their access to energy and electricity and also at such institutions, one realises what I said earlier - the enormous challenges facing our Government.

The statistics on electrification at the end of 1998 were 42,5% for rural areas and 76,7% for urban areas. The overall percentage was 62,7% in 1998. But, if one views this against the backdrop of 36% before the ANC Government came into power, then one would realise the pride that one has in belonging to the ANC, the ANC that cares for the people and the ANC that is an agent of change. The electrification programme aimed to provide electricity to about 2,5 million households by the end of 1999.

There is a need to put emphasis on the access of women to managerial and other senior positions at various institutions and on regulatory boards. I have said that women are the key users of household energy. Therefore it stands to reason that they should be drawn in, at policy level, as this would assist in developing women-friendly policies. This is what I call affirmative action, that is regstellende optrede'', which simply means corrective action’’, corrective because it seeks to right the wrongs of the past, ensuring that every sector of our society is gender-conscious, not only in terms of statements, but also in terms of policies.

We have moved a distance in a short period. Rural villages and squatter areas are brightened with lighting provided by this caring Government. Even those who saw darkness in the tunnel are now … [Time expired.] [Applause.]

Mr M N RAMODIKE: Madam Speaker, it would be a great omission on my part to leave this podium without mentioning that it is, indeed, a privilege and an honour to serve on a portfolio committee chaired by the hon Duma Nkosi rather than those political hecklers and howlers over there. [Laughter.] The UDM believes that the role of the Department of Minerals and Energy in the mining industry should not only be supportive in terms of rendering services of an administrative nature to the mining industry and the mining community, but also be supportive, enabling and stabilising in terms of developing viable strategies for social and enterprise development aimed at creating jobs and job opportunities. Unlike the Department of Labour, the Department of Minerals and Energy is not actively engaged in the creation and maintenance of the capacity to monitor, analyse and disseminate mining and market information to potential investors inside and outside the country. The publication and distribution of a promotional booklet, Invest in an intensive and a diverse minerals industry, does not suffice to attract foreign investors. The Government should create a conducive atmosphere which would attract foreign investors.

The creation and maintenance of links with mining houses entrepreneurs in the communities is almost nonexistent. The department has not yet created resource centres in various provinces capable of responding to demands, queries and the carrying out of research on mining and mineral potential. The department has not, like the Department of Labour, established provincial business, mining or energy units for investment and market information. Publication and research has been left entirely in the hands of the private sector.

The UDM believes that the role of the Government in the mining industry should be to facilitate access to opportunities in the minerals industry for those previously disadvantaged, including equipping individuals, groups and communities with the necessary skills and resources to enable them to compete in the market place, as opposed to leaving the mineral wealth in the hands of the few mining conglomerates and transnational corporations. Black economic empowerment should penetrate the pockets of these big mining conglomerates and transnational corporations. The UDM calls on the Government and all the mining houses in this country to involve the previously disadvantaged people, groups or individuals, in joint ventures and management and shareholding of their various companies.

We were gratified this afternoon when, in her speech, the Minister mentioned that efforts are being made to introduce legislation relating to minerals in this country. It is appalling that, while South Africa has a very high mineral potential, especially in Gauteng, the North West, Mpumalanga, the Northern Cape and the Northern Province, no effort has been made to ensure that people within the country benefit from the minerals sector since this would create more jobs, especially now that some 47 800 jobs have been reported to the gold crisis committee as being at risk.

The health and safety of our people who work in the mines and in the petroleum sector are indeed of singular and paramount importance. [Time expired.]

The DEPUTY MINISTER OF MINERALS AND ENERGY: Madam Speaker, hon members, distinguished guests, we are optimistic and, as the Department of Minerals and Energy, we have every good reason to be.

Here we are, a country of about 40 million people, a country which has successfully and peacefully effected the transition to a democratic society. We know that the road ahead is still long, but much has been done and much has been achieved. Our key challenge, as a country, is to ensure that the channels provided by the democratic processes, channels such as our Government, departments, institutions and other state bodies, actually deliver on the commitments we made when the people of our country entrusted us with their hopes and dreams during the second term of Government.

Considering the importance of the industries that we have to govern, the budget for Minerals and Energy is very modest. Moreover, the department as such will only receive 38% of the total budget during this financial year. The rest goes to our associated institutions, in particular to the SA Nuclear Energy Corporation, which will receive approximately 40% of the budget, of which about 10% goes for the repayment of the strategic loan.

This loan repayment, which has been inherited from our predemocratic past, distorts our budget in the sense that we cannot utilise these funds to meet our policy objectives and the social needs of our people. I want to agree with Mr Lucas that we do need to address this issue. It is one of the key aspects that we, as the Ministry, intend to take up. There is, however, a positive trend, which resulted from careful management since 1994. The department’s share of the total budget for Minerals and Energy has increased from 15% in 1994 to the current 38% in order to ensure proper delivery. We will have to ensure that this trend continues.

The Cabinet decided that the LMT, the Lebowa Minerals Trust, should be abolished. We have instructed the department to prepare legislation to implement the decision and currently the issue of the LMT is being discussed by the portfolio committee, which intends to bring it to Parliament soon.

During the past decade the mining industry in South Africa has constantly been under threat of downward pressure by world commodity prices and the declining dollar gold price. This has impacted negatively on the industry. As a result of the above, downscaling, decreases in production and retrenchments have resulted. The gold crisis has also taught us that we have to reorganise and restructure the industry in order to ensure its future competitiveness. The challenge is to develop strategies that address the consequences, not only in South Africa, but also within the SADC region and on the rest of the continent.

Government, the National Union of Mineworkers and the business sector were actively engaged in discussions with selected West African countries, and engaged the United States, the UK and the African-Caribbean countries with the purpose of presenting gold crisis sale announcements which were economically and socially harming Africa. We, as South Africa, are proud to say that this process successfully bore fruit, given that the current rate of the gold price has improved.

Currently the gold crisis committee is dealing with 25 cases of impending retrenchments. Initially 47 000 jobs were deemed to be at risk. Of this number, only 15 000 jobs were lost. This is an indication of the effectiveness of our efforts. In an effort to find an appropriate response to the structural decline in the industry and resulting from the resolutions of the Presidential Jobs Summit of 1998, the Minister and the department, together with business and labour, hosted the successful mining summit in February, to which the Minister referred. The social plan was the outcome of the mining summit, but it was also the outcome of the Jobs Summit in 1998, in response to the pressing need to manage the social impacts of the cyclical volatility of the industry.

During the mining summit, the following main strategic objectives were identified with respect to the mining industry: The specific adaptation of social plan facilities to meet the needs of the mining industry; targeting assistance at marginal mines; the establishment of downscaling review processes; developing an early warning information system of mining closures; linking high productivity to an aggressive market strategy; and retraining retrenched mine workers and communities in other skills, including marketing and beneficiation.

I also want to say, regarding some of the issues that Mr Ramodike has raised, that if one looks at some of the documents in the department and our total programme, they do address the issues that he is addressing, and I think it is important for him to familiarise himself with what is happening within our Ministry, for a true perspective. The sector partnership committee, which is a tripartite structure agreed upon during the mining summit, will oversee the implementation of the social plan structure which will serve to advise the Minister. Future forums at mine level are envisaged as part of an early warning system, and I would advise members of the committee to make sure that they try to participate in these forums so as to make sure that they understand what is going on.

The beneficiation of our minerals is another strategy for economic growth that we have identified and that we are pursuing aggressively, as members may well know. South Africa provides approximately 25% of the raw material for jewellery production worldwide, and yet contributes less than 0,5% of fabricated jewellery. In fact, the jewellery manufacturing sector fabricates between 10 and 12 tons of gold jewellery per annum and employs approximately 4 000 people, which we believe can be improved.

Over the past century, most of the South African mineral deposits were developed by big mining houses which utilised their in-house technical and financial expertise and, therefore, one of our objectives is to change this trend. We have seed capital of R2 million available to the national steering committee which was launched in June, and a further R3,4 million has been transferred to this fund so as to try to meet the needs of the small-scale miners.

We have formulated the national small-scale mining development framework. One key issue, which we all know, is that this industry has been male dominated for the past years; but the Minister and I have to make sure that this industry is representative of the demography of South Africa. We facilitated the establishment of SA Women in Mining Association last year, whose objective it is to capacitate women through mining in local and rural areas, and we are proud to say that this association has been launched successfully.

In our report on gender equity, there was a clear call for the redressing of imbalances in the participation of women in the mining sector. The report states that links should be developed with existing bilateral programmes and other technical assistance programmes, such as the UNDP. This will enhance resource mobilisation for capacity-building initiatives.

The establishment of Sawima was a result of this initiative. This also takes us further to the support from the SADC Women in Mining Trust, which was formed in 1997, and comprises women involved in mining from the Southern African countries. Therefore Sawima is part of this. The vision and mission of Sawima is to be the force behind the revival of a strong, vibrant and transparent mining sector that enhances the positiveness of women in mining and where gender imbalances and prejudices do not exist.

The department has identified a clear lack of participation of the youth in the energy sector, and I am proud to address the president of the Youth League and say that, as this department, we do recognise that there has been a lack of youth participation in our department or in the energy sector. Capacity-building in the form of energy information dissemination and youth education was seen to be the basic step in informing youth on the energy sector. Hence, the conference which has been organised by my department for 16 to 19 May 2000. I believe it is the first … [Interjections.] Hayi wena! [Stop it!] Stop howling! [Laughter.]

I believe it is the first time in our history that we have embraced our youth, our children and our future in our programmes. It behoves us to nurture them and help them prepare themselves for the future, particularly in the field of energy. I wonder what the hon Geldenhuys did for the future of this country. If it had not been for his government in the past, the youth in 1976 would not have made this country what it was then. [Interjections.]

Today, we are here because of the youth of South Africa. The hon Geldenhuys made no effort. [Applause.] In fact, he is responsible for most of the youth being disadvantaged today. It is his own product. That is where it comes from. We are supposed to be a better country with all the resources we have, but he has set this country backwards. So he must please stop making a noise. [Interjections.]

The White Paper on Energy Policy committed Government to undertaking an integrated energy policy process and developing an integrated resource framework to meet the challenges of the future energy supply and demand. These processes will assist Government in determining the country’s future.

Mr I J PRETORIUS: I think the Deputy Minister is too young.

The DEPUTY MINISTER: Exactly, I am young. Does the hon member think I am old, like him? [Laughter.]

This process will assist Government in determining the country’s future energy needs by analysing South African scenarios. Therefore, South Africa will require a plan for energy. This plan has to be an integrated one. In developing this plan we need to look at all the energy carriers and find the optimum balance between them, in line with Government policy. This plan should enable us to make mid-term and long-term energy.

I now want to address the importance of renewable energy. The objectives of a renewable energy policy and strategy should seek to ensure access to adequate affordable energy sources, to develop communities through a balanced mix of conventional and alternative energy sources, thereby improving the quality of lives of the people, and to promote the use of clean energy technologies in support of the environment.

To facilitate the implementation of the White Paper, the department is in the process of developing a detailed policy and strategy document on renewable energy. This document will serve as an input into the proposed integrated sustainable rural development strategy, and a planned workshop on rural development and rural electrification that will be supported by the World Bank later this year.

As part of the implementation of the White Paper that was published in 1998, new legislation was developed to improve governance of the nuclear sector. The President signed the Nuclear Energy Act of 1999 and the National Nuclear Regulator Act of 1999 into law in December last year. The two Acts came into operation on 24 February 2000, at which the names of the Atomic Energy Corporation changed to the SA Nuclear Energy Corporation Limited, and the name for the Council for Nuclear Safety changed to the National Nuclear Regulator. In line with the new Acts, the board of directors has been constituted. The next step in the transformation process will be appointing the new chief executive officers.

Some of the issues that the new Act addresses are the separation of the legislation that governs Sanec, the SA Nuclear Energy Corporation and the National Nuclear Regulator in the same Act, reformulation of the governance regimes of these parastatals so that a more transparent and accountable situation is established, and empowering the Minister of Minerals and Energy to restructure Necsa in the manner proposed in our White Paper.

Eskom is investigating the pebble-bed modular reactor, or PBMR, which is the objective of the potential expanding of South Africa’s nuclear power generation capacity. While Government recognises Eskom’s ongoing research investigation into the PBMR, no decision has been taken.

Lastly, I would like to thank the hon the Minister for the good work we are doing together, and I also want to thank the chairperson of the portfolio committee, and the portfolio committee as a whole, for the co-operation we got, especially our being two women who …

An HON MEMBER: And Dr Geldenhuys.

The DEPUTY MINISTER: Dr Geldenhuys? Nonsense! [Laughter.] I also thank all our parastatals, the private sector in our area, and the mining and energy sector for the support we got throughout the year.

Lastly, I want to thank my two boys, who are not here, for the tolerance they have had of their mother who is always not there and not able to take care of them and for their behaving quite well. I believe they will be part of this sector in future. [Applause.]

Ms S D MOTUBATSE: Madam Speaker, Ministers and members of Parliament, in his address to this House 10 months ago, President Thabo Mbeki said: ``We are on track.’’ At that time I had only been in the House one month and I did not understand it, but after working through the portfolio committee that I am placed in, I started understanding the meaning of this. Truly, the   ANC-led Government has promulgated good pieces of legislation and policies on minerals and energy.

In small-scale mining, where many women are found, I am proud today to say that section 5(2) of the Minerals Act has formalised their work by granting them authorisation for prospecting and mining without any discrimination. Going through the legislation and policy, I must say to the Minister that I find it substantive enough for implementation. The departmental structures and institutions associated with this sector are doing their best to implement these policies, which is a Government priority as well. All South Africans know the importance of women. Our history shows that women are always at the forefront; be it social or economic, women always do their best when they are at work. When I was young my grandmother used to mine kaolin. At that time I only knew it as bete'' because in Sepedi we do not pronounce thev’, we just called it bete''. The Ndebeles call it iyede’’.

Today South Africans are proud of Ndebele colours, which are known worldwide. This is the work of women. It was achieved through the hard work of women mining different colours of kaolin and painting their houses. There were no paints at that time. Women were grouping themselves, forming consortiums and mining whatever minerals were available. There were no trained geologists amongst them, but they could find out where the minerals were. They relied solely on their empirical knowledge, but they succeeded.

The launch of the SA Women in Mining Association in December was another milestone achieved by women in this sector. South Africa has great potential in small-scale mining and the research done shows that there is potential in gold, diamond, clay and sand. This can create jobs and open opportunities for women, if well managed. When analysing problems faced by women in small-scale mining, I should be fair enough to acknowledge the initiatives of the Ministry, the service providers and the institutions associated with this department in addressing the problem. There is an institutional support, and the national steering committee has done its best to break some of the barriers frustrating women in mining. Technologically, women appreciate the work of Mintek and the CSIR, but we believe that there is room for improvement.

With regard to financial institutions like Khula and Ntsika, I wish to say it is possible to break down and show or reflect the number of women in the services that they are rendering, especially in the mining sector. I hope that the institutions will also build capacity and bring qualitative changes in small-scale mining.

Health and safety is a key issue in the running of this risky business. It is at present difficult for small-scale miners, but I think they also need to adhere to the safety measures. There is a need to reorganise the small- scale miners into co-operatives, and we need their commitment on this work.

With regard to the energy sector, we fully support the Minister on the effort to come up with an integrated energy supply for households. However, I wish to caution the House that women do not want and cannot be seen to be household energy manageresses only. The research shows that women are also concerned about their lives.

When dealing with health and safety we should take cognisance of the problems faced by women. Women are exposed to open fires and to fuels and chemicals used at home. Indoor pollution from using coal and wood is often forgotten when we draw up policies. Accidents related to the use of paraffin, gas leakages and candles, resulting in burns, often occur at home and affect women and girl children. With better provision of household energy, we can save lives and money in the health sector.

We wish to see more women employed in the mine safety and health inspectorate. I believe that these inspectorates do not belong to the offices, but to the mines. That is where they are supposed to work - not shifting papers. In conclusion, I think that human resource development should be seen from a different angle. Development of women in this sector is human resource development for the country.

With regard to SADC, it is important to harmonise our national policies with the broad regional interests. Also, the discussion between the Department of Minerals and Energy and the Department of Agriculture and Land Affairs is important, because when we go out to the communities, we realise that there is a gap in the policy with regard to mineral rights and land rights.

I must congratulate the Minister and the department on the progress made on the sectoral education training authority. This sector is ahead of others, and I wish to commend the department for this. I, therefore, support the budget. [Applause.]

Ms C DUDLEY: Madam Speaker, the Minister of Minerals and Energy has said that the African 21st century is not going to allow a white mining industry to continue. Some argue that there is no white mining industry as, overwhelmingly, most participants are black and that ownership vests largely with pension funds and investment houses which benefits every policy holder. Yet, many are undeniably exempt from the decision-making process. The ACDP continues to support full participation by all South Africans at all levels of the economy.

Our present challenge in South Africa is, undoubtedly, education and skills training. Official policy needs to balance the imperative of a competitive operating environment, the need to ensure security of tenure and the property rights of existing holders and exploiters of mineral rights, and the political priority of broadening participation in the mining industry. Mining is not a low-risk business. It requires a long-term commitment and deep pockets, with no guarantee of profit. Much depends on fickle and volatile markets.

The ACDP agrees that attention also has to be given to small-scale mining, as it has the potential to create jobs. The need for beneficiation of minerals is obvious, however, obstacles such as legislation and regulations apparently make gold inaccessible to craftsmen. We appeal to Government to investigate these claims and propose relevant changes.

With regard to the energy sector, there are serious concerns as to whether it is in South Africa’s interest to commit itself to a long-term nuclear energy programme where technical and economic uncertainties exist. However, the current research programme at Koeberg on the pebble-bed, small nuclear power generator to generate low-cost power without the attendant dangers of meltdown, could be worthwhile. We have already disbanded and lost a huge portion of our nuclear research capacity, which has vital medical and health spinoffs for South Africa. Finally, as one of the world’s premier producers of uranium, if there is a safe way forward, we should look at it.

The ACDP commends the Minister, the department and the portfolio committee members on their efforts to find solutions which take the industry forward. We will vote in favour of the budget.

Prof I J MOHAMED: Madam Speaker, hon Minister, hon Deputy Minister and hon members, it is a pleasure for me to support the Vote of the Department of Minerals and Energy. The portfolio committee wants to express their condolences to the Director-General of the Department of Minerals and Energy on the death of his mother and child. The Vote for the Department of Minerals and Energy of R577,7 million for this year decreased by R39,7 million or 6,4% from the revised estimate of the previous year. This decrease, without even taking into account inflation, is not good.

It is clear that mining and minerals play a declining role in the economy. However, mining and minerals are still responsible for a large part of the gross domestic product, and employ a major part of the labour force of South Africa and neighbouring countries. The department is also committed to playing an integrated role in the provision of energy over the whole energy spectrum, including nuclear energy. I believe this should justify a greater allocation of funds to the Department of Minerals and Energy. This should help the department to address the problem of job losses in the mining industry and the problems of small-scale mining, as well as to develop the necessary capacity.

The Vote allocation to the Department of Minerals and Energy decreased during the period 1996 to 2000 by a massive 21,3%, without taking inflation into account. This decrease is largely due to the changing role of the SA Nuclear Energy Corporation and its decreased funding. Of course, we must remember that the funding of Sanec is out of proportion to its contribution to the energy programme of the department, as the Deputy Minister already said, but I shall not address that problem yet again. The point I wish to make is that there is a shift away from the attempt of the old Atomic Energy Corporation to be a one-stop nuclear fuel fabricator and supplier.

The functions of Sanec are now as follows: Firstly, the decommissioning and decontamination of certain nuclear fuel facilities and the storage of nuclear waste and related regulatory functions; secondly, the separation of its commercial project based on its radiation and florination activities as a stand-alone project; and, thirdly, the possible continued operation of the Safari reactor for isotope production and its possible utilisation for academic training.

There are peaks in the funding of Sanec, as repayments of loans become due. The loan repayments will reach a peak of R265,5 million in 2002-03, in comparison with R37,6 million this year, and R35 million next year. In fact, Government funding of Sanec is projected to increase from R199,3 million this year to R425,5 million in 2002-03. The external income of Sanec has also decreased quite substantially, but is now beginning to increase and should only reach the level of 1996-97 in 2002.

Over the past six years I have pressed for a reduction in the funding of Sanec. This reduction, however, was always coupled with increased allocations to other Department of Minerals and Energy projects of national importance. These additional allocations did not occur.

I want to note some other concerns relating to this decrease in the funding of Sanec. First, Sanec has lost approximately 7 000 staff members since 1987, and approximately 2 000 since 1994. While this haemorrhage is taking place in Sanec, as well as in other science and technology organisations, we are desperately trying to draw young people into science and technology. Clearly, something is wrong.

Secondly, we have pressed for the past six years for an integrated waste management policy, but there is no indication that we are any nearer to getting there. Surely the National Nuclear Regulator should be called upon to help in getting such a policy off the ground, to which Sanec cutbacks could be allocated, and I am not referring to the loans. In the light of public concerns about the Koeberg nuclear spent fuel pools reaching capacity and the reracking of these I asked the question in Parliament whether the public could be given an assurance about safety. Part of the reply read:

In 1996 Cabinet endorsed the principle that Koeberg’s spent fuel can be stored at Koeberg for up to 50 years. Final disposal of the spent fuel will then have to take place if alternative options like reprocessing are not available.

To endorse storage for up to 50 years does not answer the question of reaching capacity soon, and what should happen to the spent fuel coming off the plant now. Also, to suggest that the reprocessing is a possible alternative is very misleading, because reprocessing produces plutonium, which is even more lethal, and further nuclear waste, and so the problem is compounded. The hon the Minister should rap the official who wrote that over the knuckles.

Thirdly, the funding of Mintek and the Council for Geoscience has been cut. Given the importance of these to mining and minerals, this must be deplored. I have long pleaded that some of the funding of Sanec should be diverted to these important organisations. Again, I am not referring to the loans. It now appears that economic capacity is being cut.

Lastly, our communities are very concerned about uranium, cyanide and heavy metals present in slime dams right on their doorsteps. We should fund the NNR to address this problem. We are pleased to associate ourselves with the Minister and her department and my comments are meant to strengthen them. [Applause.]

Mr B G BELL: Madam Speaker, it is an honour to speak on behalf of the DP in this debate on the Vote for the Department of Minerals and Energy. There are a few factors I would like to discuss. One is the proposed integration of the health and safety inspectorate with the Department of Labour. The second item I would like to discuss is the establishment of small mines.

When we talk of the integration of the inspectorates, in order to achieve this it would be necessary for the staff of the Department of Labour to be fully trained in the operation of large and small mining operations. In order to be an effective inspector, the incumbent must be able to read a situation, and not only criticise but also contribute to the safety of the operation and be able to give advice. This ability only comes from training and experience.

Labour inspectors, certainly, if they have had sufficient training in their field, will be able to contribute towards peaceful industrial relations on the mines. But if they attempt to interfere with mining operations, they may upset the smooth running of the mine. Conversely, if inspectors trained in mining are asked to interfere in the industrial relations field, they may cause upsets, as the mining environment is different to all other fields. We ask that any plans to completely integrate the two be shelved. Although there may be benefits moneywise, the final result could be disastrous.

If we talk of the establishment of small mining operations, it is essential to encourage entrepreneurs to become established in the mining industry. Those of us who have listened to Clem Sunter tell of his latest book, Never Mind the Millenium, What About the Next 24 Hours, and have heard his talk on hedgehogs and foxes, will appreciate the importance of this to our country’s goodwill and development in the future. But there are numerous difficulties to be overcome in establishing a mining operation. To discuss all of these will take many hours of talk time, so I will touch on a few of the more daunting ones.

Firstly, regarding money, the cost of establishing a mining operation is enormous and whoever attempts this must first have a lot of money or access to a great deal of it. Shortage of capital will lead to the mining engineer being forced to cut corners and, as the production of the ore body is essential to gathering more money, this aspect cannot be ignored. The result could be that safety is sacrificed to achieve the main objective of production and lives are lost. Regarding a market, the establishing of a mine requires many firsts, none more important than a market to sell one’s product in. Once one has a market to send one’s product to, the rest falls into place.

A great deal has been said on the ownership of mining rights in South Africa, and it is a subject all on its own. So far, the large mining companies which own large tracts of mining rights have been willing to sell off to small companies areas of an ore body that are not large enough for them to mine economically. In order to establish a mine operation, the entrepreneur must first complete the required infrastructure - roads, railway lines, water, electricity and communication. All of these are extremely expensive, but absolutely essential.

It is essential that all mines adhere to our stringent mine safety rules and regulations. There is a tendency to allow our small operators to ignore some rules as they are expensive to comply with and do not appear to be economic. Should we in order to meet our objective, allow this to happen, the mining industry in South Africa as a whole will suffer and may collapse.

Although the establishment of a small-mining fraternity is very desirable, it is not a good idea to allow the standards to drop. I thank all for listening and hope that some of what I have said will help to make our mining industry a wonderful area to work in and live in, as much as I did over the past 47 years.

Ms N V CINDI: Madam Speaker, boNgqongqoshe ngokulandelana, [and the various Ministers] allow me to pay tribute to our late Kgosi Lebone II of the Bafokeng community, who passed away after a short illness. The Bafokeng are mining the rich world known as the platinum region in the North West province. Mineral rights were given to the Bafokeng community. They could mine and manage their project or property and make a living out of that mining.

I want to focus specifically on small-scale mining as a source of income which communities could benefit a lot from. The biggest concern is obvious

• the limitation of access to mineral rights by disadvantaged communities. Communities want access to information about planned mining activities. I am from a constituency which is poor, but rich in minerals. This is an opportunity for people in that rural area to seize in order to make a proper living.

People of Boskuil, Kareepan and Oesenskraal and the surrounding areas should know and understand mining, and the Department of Minerals and Energy should assist in this. Similarly the investors in mining should make an effort to understand the wishes and interests of the communities and support them in achieving those. It is an ideal opportunity for mining companies to enter into agreement with communities in relationships of social benefit. The undeveloped infrastructure could be developed, and the environmental impact of the mining should be addressed by the small miners with the assistance of big mining companies.

Compensation for loss of agricultural land and costs such as moving households where the deposits occur should be addressed by the communities with the assistance of the department and the big mining companies. What we will have to realise is that tens of thousands of South Africans are putting their lives at risk each day by reopening disused mines and illegally digging for gold, diamonds and coal.

These people, who live in some of the desperately poor parts of our country, risk rockfalls, suffocation, blasting accidents and breathing in of poisonous gases. They use mercury and chlorine, which are both very dangerous substances. They ignore the health and safety regulations of the department by wanting to ensure a living for themselves out of these minerals which they believe will create a better life for them. With the necessary equipment, like picks and shovels and wheelbarrows, available, they can challenge the day’s task with confidence. With the support of the department, they should be able to set up co-operatives to be able to buy some machinery to carry out these heavy tasks.

Our study group had the opportunity to visit some of these small-mining projects. I was emotionally moved to witness how pregnant women, children and the aged arrived in the early hours of the morning with pieces of axes and wheelbarrows to dig for coal, which is later sold for a mere R5,00 to another community, and business continues as if everything is legal and normal. I wish all the members of this Parliament could see this heartbreaking situation of pregnant women, children and the aged digging below the earth for a living.

Some projects even provide an income for 3 000 people in the community, but the biggest concern remains the lack of education and training. They are totally unaware of the proper mining procedures and practices. They need to be assisted by the department to participate in the national steering committee which develops community projects.   I have even seen women set up a brick-making operation out of the clay which they are mining at great risk to themselves. This project needs to be applauded. It is, therefore, necessary for us to encourage and facilitate the sustainable development of small-scale mining, which is the real answer for empowerment, and the bringing of the poor and marginalised into the mainstream of our society.

Mr M A MANGENA: Madam Speaker, history has imposed on our generation an enormous obligation to undo the evils of one of the most comprehensive systems of oppression ever seen anywhere in the world. Everywhere we turn, in every sphere of our lives we care to glance at, the legacy of settler- colonialism stares us in the face.

Our generation is obliged to do all it can to bequeath a country to future generations in which inequality based on race is reduced or eliminated. In order to do this, our generation needs to keep its focus firmly on everything that needs to be transformed and democratised, and that focus must never be lost for one single moment. Future generations will have every justification to spit on our graves if we fail to do our part, and, as a result of our inaction, leave them a country where they would still have to make revolution in order to realise economic justice.

The liquid fuel industry in our country is one in which white domination is almost absolute. The five major oil companies - the sisterhood of BP, Engen, Shell, Caltex and Total - reign supreme. These sisters have cornered the oil market, fenced it in, barricaded the gates and locked them. It is almost impossible for newcomers to enter this multibillion rand industry. The newly established black companies that are trying to come in, such as Exel Petroleum and Afric Oil are struggling to keep the paltry 3% of the market that they have.

This sisterhood absolutely controls the transportation, storage, refining and distribution of petroleum products in our country - hence their ubiquitous presence everywhere on our highways, roads and streets. They are synonymous with motoring and filling-up. When one says one is going to fill up one’s car, one means that the sisters are going to fill one up.

This situation was engineered by the oppressive and racist system of the past where blacks were prohibited by law from participating in the economic activities of this country, except of course, at the level of servants or labourers. This ugly state of affairs cannot be allowed to continue, and just as it was deliberately, systematically and consciously designed by the state, it similarly requires a deliberate and systematic action by the Government of the day for its correction; market forces cannot be trusted to do it. The Department of Minerals and Energy must use all available means and measures to promote black oil companies.

An HON MEMBER: Hear, hear!

Mr M A MANGENA: Where such means do not exist they should be created. I have a big fan on this side. [Laughter.]

It is heartening to see some parastatals, such as Transnet and others, awarding tenders for the supply of petroleum products to black oil companies. We hope all other parastatals, Government departments and state organs will do the same. We hope that there are no discordant voices in this regard, that we are in fact singing the same chorus with the Department of Minerals and Energy and that the gusto of our singing will be matched in time by an equally robust restructuring programme of the oil industry. We urge the sisterhood of five to secure the future of this industry and of the country, by integrating the majority of the people of this country in their companies at the levels of meaningful shareholding, management and other forms of general participation.

One of the ways of measuring the standard of living of a people is by looking at the amount of electricity they consume. Different percentages of our people use electricity for cooking and lighting, but on average more than 50% of households use wood, candles and paraffin for cooking and lighting. And there is no need to guess who is doing this; it is black people who have no access to electricity in large numbers.

Eskom is to be commended for the enormous strides they have made in the past few years in providing electricity to large numbers of our people, especially in the rural areas. This availability of electricity simplifies people’s lives by freeing them from the burden of collecting the ever- vanishing firewood, having better lighting for their homes, and the use of cheaper and convenient domestic appliances.

That over 1,7 million households were connected to the national electricity grid for the first time in the past five years means that the lives of several million of our people were improved. In fact, Eskom is one of the most valuable assets this country possesses. It does not only provide electricity cheaply and largely reliably to many parts of our country, but it is also working in partnership with other entities in several African countries to light up our continent. We would be a foolish nation indeed if we did not protect and nurture it into becoming an even bigger giant than it is at present. More importantly, Eskom should be encouraged, supported and assisted in whatever way is necessary and possible to provide more of our people with electrical energy. The story of our country cannot be told without mentioning its minerals. We are blessed with all sorts of minerals and yet to the majority of the people that wealth has meant exclusion, exploitation, pain, humiliation, death by rockfall, and death by inhalation of poisonous gas or suffocation. The migratory labour system, the ``tonosa’’ episodes - mass parades of thousands of naked men for so-called medical examination, the huge and filthy single-sex hostels and starvation wages were all the aspects of minerals activity that blacks knew. A minority racial group expropriated all the wealth connected with our rich mineral resources. More than one and a half centuries since mining started, this is still more or less the position in our country.

Yes, a few small agreements are being reached here and there to extend the benefits of mining to some people from the black community. The prominent one is between the Bafokeng of Phokeng and Amplats which guarantees substantial royalties to that community for the mining of platinum on their land. There are others which are not so impressive, signed here and there, but in the general and overall configuration of mineral wealth in our country these agreements represent a drop in the ocean. Once more we need to sing one chorus with all the gusto our collective vocal cords can muster. Our song must say that the mining industry must be deracialised in such a way that it benefits all in our country. In this connection, would it not be better to use entities such as the Lebowa Minerals Trust to bring more and more of our people into a meaningful relationship with mineral wealth, instead of dissolving LMT - as I understand this is the position? Would it not be better to find ways and means of transforming it into such a vehicle, especially if one considers that we do not have such a vehicle?

Finally, it was really heartening to see the Minister of Minerals and Energy giving the management, the workers and their families so much support during the tragedy that befell Rainbow Minerals Mine recently. It was good to see her camping at the mine, sleeping there and giving the heroic rescue workers more support and encouragement. [Applause.] We would, however, like to see safer mining in our country so that such tragedies are eliminated. [Applause.]

Mr M R BALOYI: Madam Speaker, it is acknowledged that one of the Government’s success stories of the RDP’s deliverables has been the household electrification programme for the period 1994 to 1999, and that the realisation of such a target came about as a result of co-ordination between the Department of Minerals and Energy and the delivery institutions.

To this end, I want to pay homage to the department and the following institutions for their role in this matter. Firstly, Eskom for its efforts in not only meeting its set targets in terms of connection figures, but also for its bias towards making electricity accessible to the rural masses of our country.

I mani loyi a tshemba leswaku tindzhawu leti a ti siyiwile endzhaku ti nga phakeriwa gezi hi ndlela leyi swi nga endlekisa xiswona eka nkarhi lowu wa Mfumo wa ANC? Hi loyi a nga swi vona loko swi endleka eka tindzhawu to fana na va-Namakgale, N’wamarhanga, Phalawubeni, Thomo na le ka Masemola kwale Xifundzankulu xa N’walungu. Na loyi a itshembaka leswaku ku nga ri khale, ri ta phakeriwa na le ka Shimange, ka Silwane, na tin’wana tindhawu. (Translation of Tsonga paragraph follows.)

[Whoever would have thought that places that were excluded from electricity supply by the apartheid government would now have succeeded in obtaining an electricity supply under the ANC Government? This was seen happening at places like Namakgale, N’wamarhanga, Phalawubeni and Masemola in the Northern Province. It is also anticipated that the supply of electricity will take place in the Shimange settlement, in Silwane and in other settlements.]

I hope the people of Ndwedwe in KwaZulu-Natal, Elandsfontein in Mpumalanga and Ramokgolela in the North West will agree with me that they got electricity right in their rural settlements. I know that it was not a smooth ride for Eskom to prioritise supplying one settlement with electricity before another, as this could lead to violent confrontation in some areas, as happened at Makurung and Nkuzana in the Northern Province where lives were lost, property damaged and schooling disrupted for a whole year because those settlements were scheduled to receive electricity later than they expected.

I further commend Eskom’s small business development programme, community development programme and the schools’ electrification programme, which were rolled out in areas where grid electricity was supplied. Also to be commended are Eskom’s joint ventures. In this case I refer to Phambili Ngombane for the supply of electricity in the Khayelitsha area of the Western Cape. To be commended as well are the Transitional Electricity Distributor for the supply of electricity in parts of Mpumalanga, and Uitenhage electricity supply for their Eastern Cape ventures. Local authorities in general, and in particular the Mutale-Masisi-Vhutswena transitional local council in the Northern Province and the Rustenburg district council need to be commended for providing financial support, in partnership with Eskom, for assisting in the electrification of settlements that would otherwise not have access to electricity owing to their remoteness.

The conclusion of the RDP target-driven era marshals us into the 2000 electrification programme, which is viewed as a transitional period to the future integrated national electrification programme, during which period the Government will assume the political responsibility for integrating electrification with other delivery programmes. A notable development during this transitional period is the fact that, in addition to Eskom’s target of 250 000 grid connections and local government’s 130 000 grid connections, 23 000 connections are to be done on nongrid solar systems and, on the Eskom grid target, an upgradeable 2,5 amp limited load has to be installed.

These are critical challenges that need marketing and consultation, coupled with a convenient upgrading mechanism. My advice is that the department pay special attention to these and other challenges observed in the RDP era such as electricity vending, regarding which, despite the fact that electricity was within reach in some areas, many people in some of these areas had to resort to other sources of energy, because the vending stations were not within convenient distances for them to buy electricity.

Significant progress has been made, to date, in the restructuring of the electricity distribution industry. This restructuring is all about the amalgamation of the more or less 400 distribution authorities that are in existence today, distributing electricity at different standards and conditions, and charging different tariffs, some exorbitantly high and others conveniently low, while some share the same geographical jurisdictions. The end result is bad competition, the absence of a generic tariff structure, and operational and regulatory difficulties. Some of these entities thrive while others stagger. It is necessary to restructure the industry so that we have clearly defined and manageable distribution entities … [Time expired.] [Applause.]

The MINISTER OF MINERALS AND ENERGY: Madam Speaker, hon Deputy President, hon members, it is important that we practise our new motto on our coat of arms: !ke e:/xarra //ke.

I would like to thank hon members for a meaningful debate. There were clearly sets of issues that kept on coming to the fore from different members. Clearly, the issue of restructuring in the petroleum industry is paramount in the minds of the members, and I assure hon members that the six months which we have given ourselves to come up with an implementable plan will not be compromised. However, what I think is more important is that we will be furthering economic empowerment after there have been lessons of economic empowerment that has gone wrong. It is going to be critical that we do not fail. The same could be said of the mining industry, because some of the initiatives that we have undertaken so far have not been that successful. We obviously need to ensure that we use the experiences that we have had and the lessons that we have learnt. Very important is something which has also come across very strongly and that is the issue of access to finance. In the restructuring of both industries, we have actually raised that issue with the industry. We hope that they will also remain true to their promises and to the agreements that we are trying to reach with them to ensure that we also establish a financing mechanism to ensure that the empowerment companies do not end up overgeared and unable to ever meet their commitments and therefore resulting in the whole empowerment effort becoming a circus.

I would just like to highlight a few things. One of the hon members raised the issue of our co-operation with the Chamber of Mines. I want to assure the member that, even though we do not agree on everything, we actually have a very healthy and robust working relationship, and in fact, I would like to thank them for the frank discussions that we normally have on a variety of issues.

I would like to tell hon member Mr Nkosi that we are also committed to ensuring that we find a mechanism to support the junior miners, because in South Africa we have the very big and the very small with regard to miners. We need, therefore, to do something about creating the size in between. ERPM and Rainbow Minerals Mine fall into that category and the challenge that we intend to put to them, namely to do more to support, also has to be managed, because we do not want to overburden them when they are trying to take care of themselves. But, the principle is well taken.

Regarding the issue of the relocation of mine inspection, it is an issue that is under discussion. I would like to assure the members that it has not yet been concluded. Labour and business have also made submissions. They would also prefer that we keep the mining inspection within the Department of Minerals and Energy. Between ourselves, the Department of Labour and the Department of Health, we are determined to make sure that we take the best and most effective decision in order to make sure that we do not compromise the safety of workers.

A number of members raised the issue of beneficiation. As I explained, as did the Deputy Minister, we have extensive programmes which may not be extensive enough at this point in time, but there is a plan to look at beneficiation. This includes a trip, in a few weeks’ time, to West Africa by ourselves, labour and the industry, to go to look at training by goldsmiths in West Africa, whom we intend to bring into South Africa to assist with job creation through training in the jewellery sector. There is also a jewellery training school at Harmony, in Welkom, which Government and other different institutions have been involved in establishing. Thus something is happening there, but obviously more can be done.

Regarding the issue of the petrol price being higher in South Africa than in other countries who have lesser facilities than ourselves, the truth of the matter is that, yes, we tax our petrol. That is why we have efficiency in the system. In some other countries, governments subsidise petrol, for instance, and they have enormous problems. In some cases, when the petrol price is very high and they are unable to cope, they are forced to divert resources which they need in other sectors in order to absorb the shock. In some cases, a country simply runs out of petrol.

One thing that I can assure members will never happen in this country is that they will never stand outside with a spakupaku [plastic container] in front of a pump that does not have petrol. Between myself and the industry, we are committed that it will never happen. So if one pays just a little tax to me for that not to happen, surely that should be so. [Laughter.] That does not mean that we are not committed to reviewing the structure. There is a study that is going on looking at the inbound landed costs or IBLC in particular. Thus, that issue is well taken. When we have the results of the study, we will make an announcement.

An issue which did not arise directly, but which I would like to raise, is that I would like the House, especially the members of this side of the House, to note that all of us congratulate James Motlatsi, who is now retiring as a president of NUM, on the sterling contribution that he has made. [Applause.] I think that when the history of mining is written properly in South Africa, with proper scientific analysis of what happened and how the mining industry made its passage from being a backward-looking industry to now being a forward-looking industry, the name of James Motlatsi will be mentioned, because he is definitely a factor.

One member, Comrade Nash, raised the issue of the paraffin price. As Comrade Nash will know, Government does not take tax when it comes to paraffin, because we realise that it is mostly the poor who use paraffin. However, there are all kinds of anomalies in the value chain that Government has no control over, which, in some cases, then result in the price going up. We are also concerned about that fact. In fact, he specifically asked why the recent price hike for paraffin was larger than those of other products. That is because the product prices are linked to the international market prices. Petrol, diesel and paraffin serve different markets. So their prices are not exactly the same. He must also note that the Government does not actually tax paraffin.

There was also a question about why paraffin and the liquid petroleum gas prices were linked to the IBLC. The liquid petroleum gas prices are not linked to the IBLC by Government. This is an oil company practice, but we agree that the prices are higher than they should be. So, we somehow share that concern also.

About the issue raised by Mr Nel concerning Mr Shaw and on what I said and did not say, I will come and see him so that we can rephrase the question and start again nicely. We can restate the question and we will then try to see that we get an appropriate answer. Where an apology is due on my side, I will definitely make it. But I would like to study the record again, as explained by the hon member.

About the issue of mineral rights, also raised by Mr Nel, I do not know if the hon member is implying that a person should be compensated or rewarded for not using his mineral rights. This is the practice all over the world. The South African mining companies mine all over the world with the same kind of legal dispensation. I do not know why in South Africa, in particular, after having had all these privileges, we would still want to give them this extraordinary protection, which is not found in other countries where they mine happily. I really think we should not test people because, as the President said, we are, in this country, committed to making sure that no disruptions happen and that anything that happens happens within the law. But, please, let us not push the people too much.

There was also a question about Sasol not paying back the Equalisation Fund. I do not think that the member understood the decision, because the Cabinet decision is actually based on a sliding scale. Therefore, the question that the member is raising does not arise in quite the manner in which he was raising it.

On the issue of the pipeline price, we are currently drafting legislation in order to regulate the pipeline. So, there will be legislation for members to look into and to comment on. About the rationalisation plan, which is leading to losses by service stations: this is actually not quite accurate because the retail margin is adjusted once a year. It has recently been adjusted. This has been done, in recent years, on the recommendation of the small business advisory services. That was done in consultation with the affected target group.

The issue of the role of our institution in supporting small business was also raised. Particular mention, for instance, was made of Mintek. I think parts of the kind of review or reinforcement that we are looking at in Mintek have exactly to do with what the members are raising. We see Mintek in future playing a much more significant role in the provision of technology, so that some of the accidents and environmental hazards that members were referring to, that tend to happen especially in relation to small miners, do not happen. We also see Mintek playing a significant role in manufacturing technology that responds to the size of and challenges facing small miners. We therefore concur with the member. Something which did not come up in my speech earlier on, which I would like to smuggle in, is the fact that Mossgas is making a profit. Ngicela niqhwabe. [Please applaud.] [Applause.] There was a time when we thought that Mossgas was a lost cause. I think it is interesting that it is now turning the corner.

On the issue of fatalities in the mines, we are committed to making sure that we improve the situation. Arising out of the mining summit, we have also been given some challenges, both by industry and the unions, to look afresh at the issue of decreasing the incidence of mine accidents. But one of the things on which we all agree is that better education is critical in this sector. Many of the accidents that happen in the mines also have to do with the level of education of the workers, which is a shared responsibility between Government and the employers.

We also agree that when it comes to proto teams, it is important that each mine is able to develop a team which is also racially reflective of the people who work in that mine, so that when there are accidents people who are familiar with the mine are able to go underground. In my few in-and-out trips underground, I can tell members, I have been in a big hurry to come to the surface. I realised that the people who work there, in many cases, spend a lot of time working in one area and they actually develop a very intimate knowledge of the area. It would be a pity if we did not use that knowledge to strengthen the people’s capacity to rescue their comrades in times of need.

This year, we honoured one of the miners who rescued trapped miners in Orkey, and I think that members, as well as those who benefit from miners’ efforts, sometimes do not realise the extent of the miners’ work and the risks that they take. I think it is important that we continue to raise the issue of safety, as it has been raised here.

On the issue of rural electrification, I think Comrade Motubatse raised a point concerning the quality of the service that we will and should provide to women in the rural areas. We are determined not just to provide household solutions, but also to provide community solutions. We are committed to not just providing solar energy, but also to providing hybrid solutions, with generators that can ensure that one kick-starts local economic development in rural areas. Instead of just providing umbane welanga [solar power] for each house, we should actually provide the community with energy so as to create better opportunities for them. I am also committed to that, because if I were a woman living in the rural areas, there is no way I would accept a solar panel and let it end there. In case I get redeployed to an off-grid rural town, I want to make sure that there is capacity there.

I appreciate Comrade Mangena’s comments very much, and we promise him that we will make sure that we live up to the expectations with regard to restructuring and transformation in both the mining and the mineral sectors. Phambili Ngombane in Khayelitsha is one of the exciting projects we have in the energy sector, and we hope that there will be many more of them. The Deputy Minister is working very hard to ensure that we stimulate the renewable energy industry so that we have many more Phambili Ngombanes. [Applause.]

Debate concluded. APPROPRIATION BILL

Debate on Vote No 14 - Home Affairs:

The MINISTER OF HOME AFFAIRS: Madam Speaker, His Excellency the Deputy President …

The SPEAKER: Order!

The MINISTER: … hon members, it gives me very great pleasure to present the Vote of the Department of Home Affairs for the financial year 2000-01.

It is appropriate that I pay tribute to my deputy, Dr Lindiwe Sisulu, who has held office with me for the second term. She has been a pillar of strength in assisting me with the running of this often very demanding portfolio.

Mr Billy L Masetlha has been deployed by the President from the SA Secret Service to assume the position of my director-general with effect from 1 December 1999, officially starting with the department on 8 December. Mr Masetlha has already made his presence felt in the running of the Department of Home Affairs, and although I have welcomed him and presented him to the public through the media, I also wish to welcome him from this forum. [Applause.]

As hon members know, the two line functions falling within the ambit of the activities of the Department of Home Affairs are migration and civic services. The Chief Directorate of Migration is responsible for control over the admission of aliens to their residence in and departure from the Republic, while the Chief Directorate of Civic Services’ responsibilities comprise mainly population registration, citizenship and all matters pertaining to the issue of travel documents.

When I presented my department’s budget last year, I outlined the challenges confronting it. Looking back at that address, we can take pride that the department has successfully conquered some of the past challenges. This gives me the confidence that we will be equally successful in dealing with the present and future challenges which may offer opportunities to increase the quality of government in South Africa and the delivery of services to the citizenry.

Last year the department was confronted with the seemingly insurmountable challenge of providing bar-coded IDs to all eligible voters who needed these for the election. Many prophets of doom forecast the impossibility of accomplishing this task and this allegation became the subject of two court actions, if hon members recall, and raging public controversy in the media. In the end, on the day after the elections, not a single eligible voter complained that he or she was disenfranchised because of a failure by the Department of Home Affairs to provide the required documentation. I feel that it is my duty once again to pay high tribute to the hard work and dedication of our public servants in the department, in spite of the often inefficient and, at times, disastrous logistical conditions under which they work.

In confronting tomorrow’s challenges we must count on the same dedication of service, which is increasingly becoming the culture of our Department of Home Affairs. As the Minister I often receive reports about the insufficient service output of our offices, queues, delays and administrative malfunctions, which undoubtedly exist. However, given the size of our pool of human resources, I receive relatively few complaints about discourtesy, inefficiency or lack of dedication on the part of our public servants. My administration will continue to stress a culture of public service and dedication. The training of human resources will remain one of my major priorities.

I must note the insufficiency of the budgetary allocations. The needs of migration control and civic affairs did not input sufficiently in the overall process of governmental priority determination. Since 1994, in real terms, there has been a decline in the resources allocated to our department. One can only spend so much less, and work so much smarter and achieve so much more within the confines of what one has, and still fulfil one’s obligations. In other words, the famous analogy that one can only cut one’s coat according to the cloth one has applies. Thereafter, spiralling demands are destined to render systems and practices completely dysfunctional. The Department of Home Affairs has reached, I am afraid, that critical threshold.

The insufficient funding in every sphere of activity of my department is hampering the production of desired outputs. Moreover, projecting required future outputs against key indicators such as population and migratory trends, suggests a continued widening of this gap, inevitably followed by an incapacity to confront the resultant unmanageable imbalance. Against this existing significant disparity between actual departmental financial needs and allocated funds for the 2000-01 financial year, the allocation has increased by a mere 0,85%. This lack of funds impacts severely on staffing and consequently on the level of service delivery. The results of the moratorium on the filling of vacant posts, reluctantly introduced due to budgetary constraints and annually rising overspending, are daunting indeed. Similarly, the moratorium on employer-driven terminations has impaired our capacity to manoeuvre increasing inefficiency. During the current year, the overspending on personnel came to a staggering R24,62 million. This amount was made up as follows: Superfluous personnel - 136 in number - came to R10,6 million; 51 additional posts to the establishment came to R5,2 million; the shortfall on running costs of foreign offices came to R7,0 million; and refunds in terms of the Judge White commission ruling came to R1,82 million.

The department has requested a substantially higher budgetary allocation, merely to maintain the operation of our two functions and the services ancillary to them up to par with present standards. If we were to substantially upgrade our quality of services, we would need even greater budgetary allocations. The department’s present financial crisis is also the product of requests for adequate budgetary allocations having been declined for several years, compounding over the years our need for additional resources and capacity.

Consequently, many of our officials work in offices which are grossly inadequate, lacking basic supplies and infrastructure, such as computers. Moreover, our distribution of offices across the national territory of South Africa is grossly inadequate to meet the needs and demands of our service recipients. Therefore, we must accept the conclusion that, within the present framework characterised by financial limitations, constraints and inadequate resources, the department would not be able to meet the challenge of providing the quality of services which our people rightly deserve and expect from us.

We have, therefore, begun a process of lateral thinking to see to what extent the present imbalances can be corrected through a paradigm change. In the short term, future joint ventures with local government structures are in the process of being established. This partnership may apply in respect of civic services, as local government has a primary interest in interfacing with the population register, and could assist in the registration of and data upkeep in respect of births, marriages and deaths. Over time, local government could be involved in the issuance of identity cards and other civic affairs functions, as happens in many countries around the world.

Looking at the long term, my Ministry has pursued ways and means to restructure our department, so that we can do more and better, with increasingly less. The line functions of civic affairs and migration control present distinct and somehow different challenges. After the three- year process of policy formulation, on 5 February, the department published a draft migration Bill for comments. This Bill will restructure our migration function, addressing many of the problems and difficulties we have encoutered within the present legislative and administrative framework. The significance of this Bill is that it intends not only to bring about legislative reform, but also to restructure the administrative machinery which is tasked to carry out the responsibility of migration.

Our country can take pride in having been the first to develop a new migration system in the 21st century and for the 21st century. In fact, across the world, most migration systems have not been the object of dedicated and all-comprehensive policy attention. Many existing migration systems have developed through incremental steps and adjustments out of the original moulds cast in the 19th century or the earlier part of the 20th century, and, in the opinion of those who administer them, will need to be overhauled to meet the needs, challenges and aspirations of a rapidly globalising society with intense social and cultural exchanges, as well as the phenomena of organised crime.

In the interim, pending the restructuring and transformation of our migration function, the Ministry has taken several initiatives to bridge- gap solutions aimed at addressing present difficulties. I have given repeated instructions that a hot line be maintained with Investment South Africa, to ensure that applications for temporary and permanent residence permits associated with foreign investment may be expedited and, if needed, facilitated. Last year, there was that hiccup which was brought about by an official in my department, who, without informing the director-general or me, disrupted that hot line.

The Ministry itself has dealt with a large number of individual cases and submissions of all types. In the past 12 months alone I have taken action in respect of over 1 200 submissions and applications. Much has been written in the media about the department’s backlog in dealing with applications for permanent and temporary residence permits. I directed a number of processes aimed at alleviating this backlog.

Countrywide, I have empowered officials of the rank of deputy director and higher to exempt from having to have immigration permits, first-time permanent residence applicants who could clearly qualify in terms of completeness of their application forms, compliance with our policy and the provisions of the Act; as well as first-time applicants who, at the time of their application, have been married to a South Africa citizen or a permanent resident for two years or longer and whose applications are duly completed. This process was made applicable to all applications in the offices of the department at the time, as well as to those received up to 31 January 2000.

Furthermore, I requested that all applications for temporary residence permits that were evidently complete, acceptable and qualified in all respects, as required by legislation and regulations, received up to and including 31 January 2000, be fast-tracked to finalisation. The fast- tracking was designed for a wider group of officials than is normally the case. Moreover, I directed that in the case of temporary residence permits, where recommendations from bodies outside the department are required, such applications be accompanied by such recommendation when presented to our department.

Lastly, officials with experience in migration work were seconded on a temporary basis from regional and district offices to the department’s temporary residence subdirectorate at head office to assist with working off the backlogs that existed at the time. These measures proved to have the desired effect, and the backlog of permanent and temporary residence applications has since been substantially diminished.

Many of the difficulties in processing applications for permanent and temporary residence permits are the product of the inadequate legislation, which we found in place on our Statute Book, under which we are operating and which we are in the process of completely reforming. In order to supplement legislative deficiencies, the department has operated over the past year on the basis of policy directives contained in the consular code. However, the lack of public access to such policy directives compounded problems. For this reason, following the adoption of the Promotion of Access to Information Act, I gave instructions that the consular code be made available to the public, which would facilitate the interaction between the public and our structures.

The efficiency of the department is also being impaired by not having had a director-general for five months last year. The chief director of migration, Dr Patrick Matlou, has been transferred out of the department by Cabinet decision to the Department of Environmental Affairs and Tourism. In order to obviate the vacuum left by his departure, on 19 April I gave instructions that Mr Ivan Lambinon, the department’s deputy director- general, and the only one we have, be moved back to the department with immediate effect. Hon members will remember that Dr Umbatla had to leave last year. Mr Lambinon was serving as the head of the Government Printing Office, while having a wealth of experience and knowledge of migration. I trust that his positive contribution towards the solution of some of the migration problems has already been felt.

On 2 December 1999 the Constitutional Court ruled that foreigners involved in lifelong permanent relationships with same-sex South African partners, izinkonkoni, should, when applying for immigration permits, be treated on the same footing as heterosexual couples. Convincing arguments had been put forward that heterosexual life partners could also not be discriminated against and treated differently from spouses because of their marital status. Accordingly, I have issued regulations to provide that the benefits extended to spouses of South African citizens also be made available to life partners, with certain qualifications and controls.

At present the department runs 19 foreign offices. In locations where the department has no representation, the function is performed on an agency basis by the Department of Foreign Affairs. In December, I signed a submission presented to me by the director-general at the time, which actually decreed that certain officials should be sent to some of our foreign offices. I have enquired from the department whether that was implemented, but as of now, I do not know. Consequently, our services are provided at 185 locations abroad. During 1999,   507 246 visas were issued both abroad and in South Africa. From April visas can only be obtained from our foreign missions to obviate the possibility of fraud.

The department is running its foreign operations on a shoestring budget and the shortfall on this item for the current financial year amounts to R7 million. It will not be possible to upgrade services at current offices or to establish a presence at newly identified priority locations to deal with an annual increase of 1 million visitors. Serious dysfunctionalities pertaining to operational facilities and systems exist, especially at high- volume offices such as London, for instance, where 400 000 South Africans requiring civic services reside and 500 000 Britons visiting South Africa per annum are in need of consular services.

Moreover, following the Cabinet decision that our visa policy should be based on the principle of reciprocity, the resultant addition of nationals of 22 countries to the nonexempted visitor category, has far-reaching implications for our international capacity requirements. The total number of visitors from those countries having been 958 488 during 1998, a preliminary costing has shown that an additional R20 million will be required yearly on top of the current R7 million deficit on the department’s foreign budget.

The electronic infrastructure with regard to information dissemination and application lodging would substantially alleviate costs with regard to exorbitantly high expenditure on personnel and facilities abroad. However, the incapacity to incur the initially sizeable installation inputs has impeded the department from even fully exploring this option. Despite this, an electronic visa processing system has already been implemented at 26 South African missions abroad and a further 20 missions are scheduled to be on line by the end of this month. This project will continue for two more years, after which all visa application centres will be electronically linked to our head office.

The utilisation of the Internet for the transfer of visa data was piloted at the Maputo mission during the past year. Once security requirements have been ironed out, this cost-effective procedure will be rolled out to other offices. Apart from enhancing service delivery, the major advantage of this system relates to substantially limiting opportunities for fraud with regard to visa applications.

In the past years, the major focus of the department has been on processing permanent and temporary residence applications, and migration control was sought to be achieved mainly in this fashion. The main focus of our law enforcement has been on ensuring that aliens respect their conditions of stay in our country, and can be apprehended, dealt with and, when necessary, deported if they breach them. Such an approach placed emphasis on those who had become part of the system. However, there is empirical evidence that large numbers of illegal aliens never become part of the system, nor apply for any permit. Therefore the migration service envisaged in our draft legislation will focus greater emphasis on the enforcement in respect of people who are not within the system.

The draft immigration Bill facilitates aliens to become part of the system and be registered as such, which will increase our capacity for enforcing and applying our laws in respect to them. It also simplifies our procedures, reducing the capacity required to administer them, so that our migration line function may be able to move capacity resources and personnel into properly structured activities of control at community level.

In October 1997 the Cabinet took the decision that only certain airports will retain their international status as ports of entry into South Africa. The 10 airports identified for this purpose were Bloemfontein, Cape Town, Johannesburg, Durban, Port Elizabeth, Upington, Nelspruit, Gateway in Pietersburg, Lanseria and Mafikeng, formerly Mmabatho. These airports would be finally designated as ports of entry on compliance with set criteria pertaining to safety and security. Furthermore, Rand airport would operate as an international airport only within the purview of international agreements that South Africa may have with other countries.

During 1998 immigration services were withdrawn from a further five airports which were previously international airports, namely Alexander Bay, Grand Central, Rand Airport, Springbok and Wonderboom. Currently only the representation for international status filed by the owners of Richards Bay airport is still under consideration. The Cabinet further approved in 1999 that immigration services be transferred from Mmabatho airport to Pilanesberg airport. This decision has not yet been implemented due to structural changes that need to be made to the airport facilities by the Airports Company of South Africa to accommodate Government departments.

The magnitude of the surge in international travel to and from South Africa is indicated in the fact that a total of about 7 million visitors arrived in South Africa during 1999. This constitutes a 22,71% increase since 1995. This number is expected to grow around 9% per annum in the foreseeable future. The advantages for the country of this tendency are commonplace, for tourism is becoming a major industry and job creator. Some visit, of course, for investment and other business purposes. Consequently, the official formalities pertaining to entry and exit should be as efficient and as pleasant as possible. The new vision for migration control will try to achieve this goal.

We also need to have a new vision if we are to address the problems arising out of the administration of our civic affairs. The main problem of this line function relates to the inadequacy of our structures to respond to the demands of our service recipients and the unequal distribution of our service outlets. We do not have enough offices to meet the demand, and the distribution of our offices still reflect the spatial inequalities inherited from apartheid. Consequently, there are less offices where there are more people to serve, who often have the most intense need for civic affairs documentation such as IDs.

There are no simple solutions to this issue. Some commentators have suggested that we should close some of our offices located in affluent segments of our territory and move them to rural areas. This approach is self-defeating, because we must continue to serve the commercial hearts of our country. Furthermore, transferring an office from an urban to a rural area or from any one given place to another is often more costly than opening a new office. The limiting factor remains unavailable financial resources to either transfer offices or open new ones. Therefore, if we wish to solve the problem confronting us, we need to seek new approaches.

In June last year I submitted to Cabinet a document putting forward the idea that consideration be given to delegating the delivery aspects of civic affairs to municipalities. Municipalities will be more equally distributed throughout our territory and their distribution is more closely related to population density. Municipalities have a direct interest in keeping track of life records such as births, deaths and marriages. They will be equally qualified to enter such information into a centralised system and to issue birth, death and marriage certificates, along with identity documents.

The central level of Government could maintain the mainframe, and carry the responsibility of providing additional administrative capacity and training to municipalities where and when required. In smaller municipalities this function could be coupled with other central Government functions equally delegated to them, along the lines of the often-voiced notion of one-stop service delivery points.

Implementation of this vision will be facilitated by the development of the Home Affairs National Identification System, the acronym of which is Hanis, which will create the backbone for identification, provide secure protocols and built-in procedures to verify the accuracy of information and integrity of records. Hanis was launched this year. The project, consisting of the automation of the department’s manual fingerprint system and the issuing of a new identity card, was prodded by a continuing situation of mistrust. The present identity document has limited security features and is easily forged, resulting in persons fraudulently obtaining benefits, with a negative impact on key services delivery such as housing subsidies, health services and welfare grants.

It was resolved that an Automated Fingerprint Identification System, Afis, would be implemented to replace the manual identification and verification system. For this purpose, the Government did not have the necessary technology, and a need arose for external procurement. A comprehensive tender was published on 6 December 1996 for Hanis. After a protracted tender process - which endured scepticism and attacks from various quarters, for various reasons - the tender was eventually awarded to the Marpless Telecommunications Technologies consortium. On 8 November 1999 the department and the contractor signed a detailed supply contract drafted by the two parties.

Whereas it was initially intended to issue a two-dimensional barcoded identity card for the exclusive use of Home Affairs, it later emerged that a multi-application smart card that would serve purposes other than just identification and verification, would be a wiser option. But then, the tender won by Marpless had not addressed this need. Consequently, the department is preparing a new tender for the procurement of the smart card technology. Concurrently, the department is preparing the site to house Hanis for occupation from August this year. It is hoped that the first Hanis smart card will be issued during the last quarter of the year 2001.

The smart card that we are introducing is not confined to the limited identification and verification realms of the Home Affairs strategic engagement only. Rather, it is a multi-application Government identity smart card with extensive capacities, contained in a chip that boasts enough intelligence to allow other departments - and perhaps even other forms of industry, like banks - permission to utilise the card technology. The Hanis card will serve several Government departments and, among others, the following are co-operating with Home Affairs on the project: Welfare, Health, Labour, Transport, Housing and Communications.

I have instructed my department that as soon as the new cards are available, an adequate communication strategy be implemented to explain their advantages. However, I do not wish to force our people to substitute their current barcoded documents with the new cards, and I have instructed the department that the introduction of the new cards be phased in on the basis of the needs of our population and in response to their requests. The new cards will be smart cards in so far as they will be able to be automatically read by a machine. From a technical viewpoint, they will not be dissimilar to the cards that members of Parliament utilise to access their offices in the parliamentary precincts and those which are employed for building access control. However, their security features will be greatly enhanced on the basis of state-of-the-art technology.

I have requested my department to investigate worldwide technology in this regard to ensure that the investment we are making in this project not only purchases for our country the best available technology, but also enables us to develop an improved product, which we may, in turn, be in a position to offer to other countries which in the future may wish to transform their national identification systems by basing them on smart cards. For this reason, I have instructed our director-general and senior officials to visit several foreign countries, including Malaysia, Australia and Finland, to familiarise themselves with the systems employed there, and possibly produce for our country something not only equally efficient and effective, but possibly with more advanced features which those countries would adopt if they were to develop their systems today.

For instance, I have requested the department to investigate the possibility of tying the smart cards to our electronic fingerprinting system, so that the identity of the bearer of the card can be directly determined by an access-control device or other equipment without the need for a machine operator having to compare the face of the holder with the picture on the card. This will, obviously, facilitate functions across the board, including the payment of pensions. However, the new vision we hold may be wrecked by the present budgetary constraints. Despite the dramatic increase in foreign visitors, the personnel situation with regard to immigration officers has reached critical proportions.

Due to the existing moratorium on the filling of vacant posts, the department had to resort to crisis arrangements at key ports of entry where service delivery was on the verge of collapsing. This includes already overburdened staff having to work overtime, as well as the employment of casual workers. Both have significant disadvantages, of course. In relation to overtime, long hours impact negatively on alertness, as all of us know, and customer care, and the option of giving officers time off for the overtime worked cannot be followed due to financial constraints. The practice has also contributed to high levels of absenteeism due to fatigue.

Some major ports of entry are practically dependent on casual workers for continued operation, such as Johannesburg International Airport with 68,57%, Cape Town International Airport with 44,74% and the Lebombo border post with 89,47%. In the case of Cape Town International Airport, the Airports Company has even for some time funded the appointment of additional casual employees, just to ensure acceptable passenger flow at the airport. Of course, the utilisation of temporary staff poses inherent problems, such as training standards, motivation and reliability.

To alleviate this problem, on 1 April I decided to employ and casual staff contingent on a full-time basis, which remains an ad hoc measure forced upon us, rather than the result of a personnel needs assessment. The consequence of these personnel shortfalls, as well as the incapacity to equip ports of entry with adequate facilities, has limited the department’s contribution to important Southern African regional development initiatives such as the Trans-Kalahari highway, where traffic at the Kopfontein border post has increased by 113,03% since 1995, and the Maputo Corridor project where traffic at the Lebombo border post has increased by 131,3% during the same period.

During the past six years the department was undaunted by the enormous task that it faced in respect of the influx of illegal aliens into the country, despite the fact that it was severely hampered by a lack of resources. In this period the number of illegal aliens removed annually increased from approximately 70 000 to more than 180 000. Illegal aliens, in many cases with syndicate connections and sufficient resources, utilise the legal process to remain in the country, in contravention of the Aliens Control Act. The previous financial year’s budgetary allocation was not sufficient to defray legal costs. In the current financial year the entire amount allocated was spent in the first three months. Legal costs and the administrative demands of litigation are bound to increase as we transform our functions in compliance with the Constitution and a human-rights-based culture. In the long term, a solution to this problem will be found in the new immigration courts and specialised immigration officials interfacing with them, as well as by applying simpler and more objective laws and regulations, which would be the case under our new immigration service system.

A great challenge that lies ahead for my department in this field in the year 2000 is the finalisation of the process which commenced with the drafting of a Green Paper on International Migration in 1998, followed by a White Paper in February 1999, that led to the publishing of a draft immigration Bill on February 12 last for public comment. Throughout, we have endeavoured to keep this process open to public scrutiny and participation. Both the Green and White Papers were published for public comment. Provincial public hearings were held in all provinces for comment on the Green Paper. The 80-day period provided for public comment on the draft immigration Bill, will be followed by a conference bringing together role-players and stakeholders.

The finalised Bill resulting from this process will be submitted to Cabinet, as soon as possible, to be considered by the National Assembly. I anticipate tabling this Bill in Parliament by the end of August. In the meantime, the Aliens Control Act of 1991 is still in force and certain amendments to this Act may be required. We need to expand the definition of ``passport’’, simplify the visa requirement procedure in respect of aliens entering the country and the issuing of immigration permits to dependants, and regulate the extension of permits and the removal of certain persons from the Republic of South Africa. A draft Aliens Control Amendment Bill is currently being drafted for my consideration before being submitted to the parliamentary process.

The regulations of the Refugees Act of 1998 were drafted during 1999 and submitted to stakeholders for comment in November 1999. The Act, which has far-reaching implications for the handling of refugees in South Africa, came into effect on 1 April 2000. In accordance with section 8 of the Act, five refugees-reception centres were established, namely in Braamfontein, Cape Town, Durban, Port Elizabeth and Pretoria. This will bring to an end the system of lodging claims for asylum at any Home Affairs office, which created enormous problems, as there was no systematic and co-ordinated control of claimants.

Status determination officers were transferred from my department’s head office to these offices in March 2000 to effect the smooth implementation of this Act. The Cabinet will be approached regarding the financial requirements for implementing the envisaged staffing structure. Whereas the cost hereof for the ensuing financial year has been estimated at R15 106 000, only R5 175 000 has been allocated.

The department, in collaboration with the Independent Electoral Commission and other role-players, is currently in the process of preparing for the local government elections that will take place during November 2000. The department will again do everything in its power to ensure that the demand for barcoded identity documents is met. Amendments to the Identification Act of 1997 will be made during the present parliamentary session to make provision for the abolition of all forms of identity documents except the barcoded identity document.

Incidentally, I know that many people were surprised yesterday, when it appeared that I had made a statement that the date for elections might not be met. All I said was that I received information from the Department for Provincial Affairs and Local Government to the effect that if, in fact, we do not fast-track the Bill, that might be the result. That was just speculation. But, on television, members may have seen that my colleague was baited into saying that the date would not be changed. This morning, in the Cabinet committee, we talked about this, and clearly he did not even know that I had made a statement. A mischievous journalist actually asked him to do that. Even this morning, the President said that he was not sure of the date and that the Minister would give the date. Even that was used by the electronic media this morning and it was presented as if the President was not sure of this. Of course, many members are quite used to my being made the dunce of Cabinet and being presented as the ultimate fool in this Cabinet.

In June 1999 provincial elections were successfully delivered by our Independent Electoral Commission and this made it possible for hon members of this House to be here today, thanks to the IEC. The Independent Electoral Commission and its chairperson, the chief electoral officer, the staff and all those men and women who contributed to the success of the elections deserve credit for their dedication and commitment to the development of democracy in our country.

In planning the preparation for local government elections, the commission is working in close co-operation with Government departments and role- players involved. It also has to closely follow and support the demarcation and delimitation of wards for new municipalities. Once the delimitation process has been concluded, the commission will have to ensure that voters who are already on the voters’ roll, as well as those who will still be applying for registration, are placed in the correct segments of the voters’ roll.

The new municipal order introduces a more complicated electoral system than the one that pertained in last year’s national and provincial elections. So, as representatives of the people, we have a very great responsibility in understanding this. I remember that last weekend someone explained it, and asked me whether I had understood it. I said that we understood the English that was being used, but not what was being said. [Laughter.]

Thus, this calls for a timely and intensive voter education effort. The resources of the commission will, once again, have to be supported by nongovernmental and community-based organisations, the printed media, national broadcasting and community radio stations, as well as traditional structures in rural areas. Political parties have a special responsibility to provide voter education.

The Electoral Act of 1998 was passed at a time when the new municipal dispensation was still being developed and was not meant to apply to municipal elections in the post interim period. The Independent Electoral Commission, charged with the regular review of electoral legislation, has submitted to Government a draft municipal electoral Bill, to provide the necessary statutory framework for the management of local government elections which is now before the Home Affairs portfolio committee.

I wish to mention a small but important improvement in our quality of life. In terms of existing legislation, a woman, upon her marriage, may retain her maiden surname, may assume the surname of her husband, or join her surname with that of her husband as a double-barrelled surname, as an option of her own volition, as a matter of choice. As women in the past generally assumed the surnames of their husbands as a consequence of marriage, their husbands’ surnames were automatically allocated to them upon registration of their marriages in the population register. Should a woman, however, wish to retain her maiden surname, a written notice to that effect to the department was required, upon receipt of which her surname was amended accordingly. Such amendments could only be effected by the department’s head office in Pretoria.

In the recent past, women objected to the system of automatic registration in the population register under their husbands’ surnames, as if we own them. So we must be careful even of using endearing names such as ``my darling’’, as if we own them. [Laughter.] Women do not want us to own them. [Laughter.] To accommodate the needs of women in this regard in a more equitable and user-friendly way, the computer systems of the department have been amended to allow our domestic offices to do the amendments locally - in other words, on the spot - which will largely eliminate the delays and inconveniences of the past.

Furthermore, the marriage register has now been amended to include a question regarding this issue of the surnames, ie to ask the woman which of the surnames she wants to be known by after her marriage. She will then be recorded under such surname when the marriage is registered, and not automatically under that of her husband, as was the case in the past. Madoda bhasobhani. [Men beware.] [Laughter.]

The re-incorporation of the erstwhile independent and self-governing states into a unified RSA after the 1994 general election, brought about the necessity to re-organise and rationalise government printing. In pursuit of this objective, the Government Printing Works has been tasked with the responsibility of establishing the national Government Printing Works, with decentralised offices and stores in the provinces wherever necessary. This is a responsibility that I put in the hands of the Deputy Minister, Dr Sisulu. She has had discussions with provincial governments on this issue, and discussions are ongoing. Progress that has been made so far, is satisfactory.

I will be informing the Cabinet in the second half of this year on the progress in detail. The downside of this, however, is the number of superfluous staff having to be taken over from the various printing establishments. The investigation relating to alternatives to privatisation, which the Cabinet must consider in the final instance, has progressed well. A report is expected within the next month and will be presented to Cabinet after consideration by the department. With regard to this issue in particular, and the Government Printing Works as a whole, I must express my particular appreciation to the hon Deputy Minister, Dr Lindiwe Sisulu, for her dedicated attention to the printing works. I regret that owing to her family bereavement, she is not with me today. I feel as if I am naked if she is not in the House. [Laughter.]

The primary function of the Film and Publication Board, which also falls under her, is the classification of all films and interactive computer games intended for distribution and/or exhibition in the Republic. The film, video and computer games industry is a rapidly expanding one and imposes increasing demands on the board. The introduction of films in DVD and CD-Rom format has added markedly to the workload of the board.

In addition, the board is required to monitor the Internet for child pornography, which presents unique problems. Given the international character of the Internet, the problem of protecting our children from sexual predators requires close liaison and co-operation with law- enforcement agencies in other countries, which has cost implications. One must appreciate the self-regulation of the industry which provides basic computer programmes which bar any pornography from any given computer, thereby reducing the risk of unsolicited exposure or the exposure of minors.

Nevertheless, the board not only maintains close and collaborative contact with law-enforcement agencies in other countries, but also attends workshops and conferences to discuss common problems and strategies for better and more effective co-operation. To give effect to Deputy Minister Sisulu’s call for more protection of children from sexual exploitation and abuse, the board is organising, in collaboration with the Office of the Deputy Minister, a national workshop on combating child pornography through effective law enforcement. [Laughter.] [Time expired.] [Applause.]

Mr M R SIKAKANE: Mr Chairperson, Deputy President, I am sure that before the Minister gets back to KwaZulu-Natal he will already be in trouble here at Parliament. I have six sons. Is he telling me that when they get married in my kraal I will have oButhelezi in my kraal, because one of my sons is married to MaButhelezi? [Laughter.]

The MINISTER OF HOME AFFAIRS: [Inaudible.]

Mr M R SIKAKANE: If hon members go out this evening and pick up the Cape Argus the headline will read Mbeki pulls the rand back''. When I finish this speech I am sure the morning newspaper headline will readSikakane pulls the rand back further’’. [Laughter.] I say this because I am going to speak on a very sensitive issue in this country, namely immigration. I will confine myself to that for reasons members are going to hear.

On the subject of immigration, please allow me from the onset to say that I am not talking here about illegal aliens, refugees or people seeking political asylum, but about people who willingly decide to settle in South Africa and make it their home. I know that to some of us inside this House and out there this is a sensitive issue, considering our past. Let me hasten to say that nowhere in the world where democracy prevails would one find people barred from settling in a country permanently or otherwise. The only difference is that legislation has been put in place which regulates immigration policy and other requirements.

The unfortunate part is that in this country we have never had a legislation on immigration. That is our biggest problem. That is why people are up in arms all over the country. We have never had legislation in this country that regulates how people should come in and go out. It is heartening to know that the Department of Home Affairs has began this process in a form of a White Paper.

Out of desperation and driven by need, the Department of Health went out of its way to recruit foreign doctors to work mainly in rural areas which most of our doctors are not impressed about doing. They work with dedication. The previous Minister of Health, Dr Nkosazana Zuma, had lots of praise for doctors who had been sent to rural areas. But what is upsetting is that we seem not to be appreciating and saying thank you to those people who have been working in rural areas.

I say this because I want to cite an example that took place in my constituency at Ngwelezane Hospital in Empangeni. Here, a doctor working in the intensive care unit - which is a very crucial component of a hospital, as one has very sick people there - was jailed simply because he altered some dates on the application form, because he felt he was late in applying. He was locked up. People were left dying in the hospital’s ICU.

I happened to get involved, thanks to the Department of Home Affairs’ new director-general, Mr Billy Masetlha, who intervened. The doctor was released from jail. After having been refused permission to work, they assisted in getting him back to work. I am pleased that the new director- general has shown his worth by quickly getting to grips with what is happening in the department.

I would like to conclude with a big request of the Department of Health and members of the Portfolio Committee on Health. I see Dr Nkomo, the chairperson of the committee, is here. It is a pity the Minister of Health is not here, because this is not the baby of Home Affairs. Home Affairs says: Go back to the Department of Health. They are the ones who brought you here.'' I say that this is un-African. We bring people out from overseas, who work here for five years or whatever period, but we do not take care of them. The Department of Health is the one which is not approaching the Government and the Department of Home Affairs to say:Let us give these doctors blanket permanent residency if they have worked in this country for five years.’’

Let me remind hon members, in 1993 the previous government, just before the elections, granted European doctors who had been here for merely one or two years blanket permanent residency. Why can we not do that with people who have rescued us over the past five years? What is the difficulty? We must give permanent residency to these people who apply. I am challenging and requesting the Department of Health to do so. [Time expired.] [Applause.]

Mr M WATERS: Mr Chairman, the hon Sikakane said that he hoped the headlines tomorrow would read: Sikakane pulls back the rand''. Well, if the ANC had listened to the DP in the first place, the rand would not have fallen. The hon the Minister also said that he feels naked without his Deputy Minister here. I say to the Minister:As long as you are not naked when the Deputy Minister is around, hon Minister.’’

The DP has three fundamental problems with Home Affairs which are the root causes of the overall inefficiency and lack of capacity. These are: one, underfunding; two, bad management; and, three, serious allegations of irregularities. As I have only eight minutes to speak, I will identify only the most serious issues which have been dramatically affected by either gross underfunding in this budget or bad management, and which impact directly on the public.

Some of the department’s financial woes are self-inflicted, with many sectors starved of finances, while others spend freely on skewed priorities as if there were no tomorrow. On my recent visits to Home Affairs offices throughout the country, I was moved by the dedication of many of the people employed by Home Affairs, some of whom are here today. But even these committed loyal people can only do so much and no more.

The underfunding of the Department of Home Affairs is reaching critical proportions in the following areas. The sum of R15 million was required to set up refugee reception offices, as stipulated in the Refugees Act of 1998, yet only R5 million has been awarded. This means the Act and its stated objectives have been placed in jeopardy at conception. At least 1 200 officers are required to police the presence of the estimated 8 million illegal immigrants in this country, but we only have 325 of them doing the job of repatriating roughly 180 000 illegals a year. If the current level of illegal aliens does not increase, which is very unlikely, it will take the 325 officers 44 years to deal with all 8 million illegals.

The department was forced to resort to crisis management in immigration when services at entry ports were on the verge of collapse. Overburdened staff were forced to work overtime, and casual workers had to be employed. The situation deteriorated to such an extent that 68% of staff at Johannesburg International Airport and 89% at the Lebombo border post were casual workers. At Cape Town International Airport the situation became so severe, that the Airports Company was forced to find 15 casuals at the cost of R40 000 a month. The crisis has undoubtedly led to criminals and drugs slipping into the country, because too few personnel are able to scrutinise and inspect incomers’ documentation and their luggage the way they should. The DP urges the Minister of Finance to plough back revenue collected from departure tax into tourist-related services such as immigration. [Interjections.]

Then we come to the IEC, which requested R998 million in order to run the elections properly in November, but was only given R450 million, a difference of R540 million. In other words, the IEC will be underfunded by a staggering 54,9%. The department has also suffered the consequences of bad management decisions, some of which I will outline.

One sector which seems to have an abundance of financial resources, is the legal department, which has a humiliating record of court cases and appeals it has lost in recent months. Notable cases were those of the National Coalition for Gay and Lesbian Equality, as well as Ayesha Danyal, who appeared in the Sunday Times recently. They both took on the department in separate court cases and won. If the amount of taxpayers’ money spent on defending the department was not so serious, I would be laughing with a lot of other people, but the blatant stupidity of the Ministry, which obviously does not believe that ordinary citizens can and will take on the Government, is unbelievable. I would like to give the Minister a word of advice …

Adv J H DE LANGE: Chairperson, on a point of order: Is it correct that the member refers to the ``blatant stupidity’’ of the department? I would like to ask him to please withdraw that.

The CHAIRPERSON OF COMMITTEES: Order! Hon member, will you please withdraw that?

Mr M WATERS: I withdraw that, Chairperson. [Interjections.]

Mr K M ANDREW: Chairperson, on a point of order: The member is not using any language reflecting on the honour … [Interjections.]

The CHAIRPERSON OF COMMITTEES: Order! Hon Mr Andrew, the member has already withdrawn. Please continue, hon member.

Mr K M ANDREW: Yes, Chairperson, but I think that it is an incorrect ruling and I would like to address you on it, because it sets a precedent. [Interjections.]

The CHAIRPERSON OF COMMITTEES: Order! Hon Andrew, I have ruled on the matter and the member has withdrawn his statement. Please let us continue with the debate. Continue, hon member. [Interjections.]

Mr M WATERS: The next time the ANC Cabinet takes a decision to oppose a court case, as it did in the case of the Coalition for Gay and Lesbian Equality, they must be reminded to read the Constitution and their own policy, which protect people against discrimination on the basis of sexual orientation. They need to be reminded of that. They also need to be reminded that the Constitution no longer allows officials of the state to literally kidnap, detain and deport miners who have not transgressed the law, as stipulated in this judgement.

I would like to advise the hon the Minister to drop his next round of appeals against Ayesha, because she will win and the hon the Minister will lose the court case. The hon the Minister needs to get a grip on his legal department, because the DP will not allow him to continue to plead poverty while pouring money down the legal drain.

Criticism is heaped on the department daily with regard to the processing of permanent residency applications and work visas. This is besides the ongoing hassles of obtaining ID books and passports.

The MINISTER OF HOME AFFAIRS: Chairperson, on a point of order: The hon member is very conscious of money that we throw down the drain. What about the crisis in the bar codes in which the DP was involved? What double standards are those?

The CHAIRPERSON OF COMMITTEES: Order! Hon Minister, could you please respond to that when you are given the chance to respond? Let us give the member time to debate. Please continue, hon member.

Mr M WATERS: Thank you, Mr Chairman. Currently, the time taken to process permanent residency applications is 18 months. That is about 15 months too long. The Minister needs to set targets and to stop using the immigration selection boards as an excuse for the delays. Yes, the immigration boards are independent of the Ministry, but he, as the Minister, is accountable for their actions, or lack of action as the case may be. The Minister appoints the boards and pays their salaries, and if they are not effectively eradicating backlogs, it is up to the Minister to replace them with people who will. That is the Minister’s responsibility.

Another problem is that the department keeps on issuing new internal regulations which continuously move the goalposts. One example of how this affects our economy is the advertising obligations by companies wishing to employ foreigners. When the department changed the rules about where an advertisement should appear, the information was only circulated internally and not to those affected by these regulations. This has led to companies taking certain steps in good faith and then having their applications for work permits rejected. This has forced the restart of the whole process costing the companies and the economy thousands of rands.

I want to say to the Minister that we are not playing a cat-and-mouse game where the department changes the rules and the participants have to guess which rules have been changed and to what. I appeal to the Minister to cut the red tape and to launch a vigorous immigration campaign worldwide to attract skills that we need in this country.

In conclusion, the most urgent task facing the Minister is to insist upon the review of the drastic decision to slash the IEC funding. If this Government were truly committed to free and fair elections, the Minister would not give his support to cutting the very funds meant to register and to educate the voters of this country. He must consider whether or not the ANC might well prefer an uneducated electorate in November. [Interjections.] It is not a coincidence that the most complicated voting systems are in district councils where the overwhelming majority of poor and illiterate people live. We could be one slashed budget away from Zimbabwe. [Interjections.]

The CHAIRPERSON OF COMMITTEES: Order!

Mr M WATERS: I shudder to think what amount the ANC will allocate to the IEC in 2004, especially if they are threatened for power. Unlike ministerial cars, ministerial security and planes for the President, no corner should or dare be cut when funding the IEC. For every cent the Minister cuts from the IEC budget, he is slowly but surely suffocating the participation of our people in the election.

This Government has given the Minister’s department an impossible task of delivering services to people without the necessary funds. When people have to stand in queues for hours on end owing to a lack of staff, it is not the ANC that will shoulder the blame. It is he and his party, the IFP. [Interjections.] One might wonder if the ANC is not deliberately setting him up for failure. [Interjections.] [Applause.]

Mr S N SWART: Chairperson, hon Minister, the central role of the department is the maintenance of the integrity of our borders, keeping track of who the genuine South African citizens are and the maintenance of the voters’ roll. This function is a multidimensional responsibility. It impacts on our economy, public health, employment levels and crime rate.

Our ability to hold to trade agreements which we have signed also lies at the door of this department. We have to protect ourselves as a credible player in global trade through stability in the country. But when, through ineffective border control, we have become a malaria risk, an Aids risk, a crime risk and a drug risk, our status as a credible trade partner suffers.

When the Department of Home Affairs and other departments fail to control our national frontiers, we lose the respect of our international trading partners. We have no objection to giving refuge to bona fide immigrants. These are, however, a small percentage when compared to the large number of illegal immigrants. Whilst we do have an understanding of budgetary constraints, we believe that Home Affairs has done a disservice to our economy through ineffective border control, together with contributions by other departments in this area. It would appear that we are exporters of stolen vehicles and importers of illegal firearms, and our good infrastructure is undermined hereby.

The USA is a nation of champions because they lure other countries’ champions. They do so in all spheres of life, from scientists to sportsmen. Do we have similar programmes? Do we have a policy on such issues? The hon Sikakane referred to the White Paper and various issues in this regard. Yet, illegal immigrants appear to enter our country with impunity. All our Government departments are experiencing a chronic shortage of skilled personnel. We need to train the necessary people in the shortest possible time. [Time expired.]

Debate suspended.

The House adjourned at 18:00. ____ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

TABLINGS:

National Assembly and National Council of Provinces:

Papers:

1. The Minister of Home Affairs:

 Report of the Department of Home Affairs for 1999 [RP 98-2000].

1. The Minister of Correctional Services:

 Report and Financial Statements of the Judicial Inspectorate for the
 period 1 June 1998 to 1 February 2000.

1. The Minister of Health:

 (1)    Protocol on Health in the Southern African Development
     Community, tabled in terms of section 231(2) of the Constitution,
     1996.
 (2)    Explanatory Memorandum to the Protocol.