THURSDAY, 15 MARCH 2001 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY
                                ____

The House met at 14:00.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - col 000.

                          NOTICES OF MOTION

Mr M T GONIWE: Madam Speaker, 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 with pleasure the decision by Chief Ndaba Mtirara to leave the UDM and join the ANC … [Applause.] (2) believes that the move by the chief represents the imminent demise of the UDM;

(3) welcomes the chief to the ranks of the ANC; and

(4) calls on other patriots to emulate this example and join the ANC, as it is the only party that is able to lead South Africa towards total national liberation.

[Interjections.] [Applause.]

The SPEAKER: Order! Will hon members please wait to be called before they speak? The next notice of motion will be by the DP. Will members take their seats and stop private meetings, please! Order!

Mr N J CLELLAND: Madam Speaker, I hereby give notice that on the next sitting day of the House I will move on behalf of the DP:

That the House -

(1) notes that President Mbeki yesterday, during parliamentary question time, promised to refer the matter of his new luxury presidential jet to the Cabinet;

(2) notes that the enormous cost of buying and maintaining such a jet is a luxury that the poor people of South Africa cannot afford;

(3) further notes reports in the media that there is now a serious shortage of qualified pilots for this new luxury jet and that pilots from the private sector may have to be used, at a huge cost to the state; and

(4) calls on the Cabinet to delay final purchase of the jet so that all options can be carefully considered with due deference to the real needs of our people.

[Interjections.] [[Applause.]

The SPEAKER: Order!

Mr V B NDLOVU: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:

That the House -

The SPEAKER: Just a moment, hon member. The microphone seems to be out of order. Would you try again?

Hheyi! Lawo malungu ahloniphekile mawangadlalali lapha! [Uhleko.] [Hey! Those hon members must not play here! [Laughter.]]

Mr V B NDLOVU: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:

That the House -

(1) is shocked to learn of the murder of a SAPS member because his dog made a noise;

(2) asks the Minister for Justice and Constitutional Development to look at the bail system which applies to people who are involved in killing police;

(3) urges the courts to apply harsher sentences to those people who kill members of the Police Service because they are police members; and

(4) urges the members of the House to support the police - those who are good and innocent - to do their work properly without fear or favour.

Ms L M T XINGWANA: Madam Speaker, 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 with displeasure and shock the continued screening of Yizo Yizo;

(2) further notes the widespread outrage and condemnation of this show;

(3) believes that the screening of Yizo Yizo does not contribute positively to the kind of society we seek to build;

(4) further believes that this undermines the norms, values and cultural and religious beliefs of the majority of our people; and

(5) urges SABC 1 to stop further broadcasts of Yizo Yizo.

[Applause.]

Mr M C J VAN SCHALKWYK: Madam Speaker, 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 with disbelief that Mr David Rasnick, a member of the President’s Aids Advisory Panel, wrote a letter to the Financial Mail, published in the edition appearing on the streets this afternoon, in which he refers to HIV/Aids as ``a harmless virus’’;

(2) further recalls that President Mbeki has assured the nation that he will be guided by the advice of scientific experts on the issue of HIV/Aids; and

(3) calls on the President to distance himself, once and for all, from perspectives of people such as Mr Rasnick by removing him from the President’s Aids Advisory Panel, and by availing himself of more reputable scientific advice in order to properly address the HIV/Aids crisis in South Africa.

It is not a harmless virus. [Applause.]

Mr T ABRAHAMS: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the UDM:

That the House -

(1) notes with concern the growing impatience amongst rail commuters with the level of service being offered;

(2) takes heed of the public complaints about the service and other expressions of dissatisfaction;

(3) recognises the efforts being made by the SARCC and other relevant authorities to improve their service and salutes those who are striving towards this objective, despite financial constraints;

(4) urges such authorities to think beyond simply trying to cope and to work proactively to attract customers; and

(5) calls upon all the relevant authorities to make their service more user-friendly and to win the commuter over to their side in the competition for business.

Mr D M GUMEDE: Madam Speaker, 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 that the strike which resulted in the backlog in the delivery of letters by the Post Office has been called off by the union;

(2) believes that the resolution of problems engulfing this service between unions and management will contribute positively to improving the quality of service;

(3) commends the bold decision by unions and management to resolve their dispute; and

(4) calls on both management and unions to develop mechanisms to ensure that disputes are resolved without having to resort to strike action.

[Applause.]

Mr L M GREEN: Madam Speaker, I hereby give notice that on the next sitting day of the House I will move on behalf of the ACDP:

That the House -

(1) acknowledges the community transformation that has taken place in some 40 cities worldwide where the levels of poverty, disease, unemployment and crime have drastically reduced as a result of concerted and united prayer action;

(2) welcomes the initiative taken by the group of business, church and community leaders known as ``Transformation’’ in organising prayer meetings with a view to community transformation;

(3) notes the Lord’s promise contained in Jeremiah 33 in this regard; and

(4) particularly welcomes the united prayer meeting to take place at Fedsure Park, Newlands Rugby Stadium, on Human Rights Day, 21 March 2001, where at least 40 000 people will participate in united prayer in the mighty name of Jesus, for community transformation in our city and country.

[Applause.]

Mr J P I BLANCHÉ: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move:

That the House -

(1) calls on the Minister of Transport to urgently take steps to address and remove the problems that exist with regard to the rail commuter services, causing passengers to destroy public property and putting the safety of law-abiding citizens at risk;

(2) further calls on the President to take note of the mood that exists among low-income groups, who face hardship because of poor service delivery on the part of Government; and

(3) calls on the President to ensure that Government improves its performance, because the destruction of infrastructure and equipment has a detrimental effect on investments, which in turn slows down economic growth and makes a mockery of what he and other leaders refer to as the African Renaissance.

[Applause.]

The SPEAKER: Hon members, will you please conduct your private meetings outside this Chamber, and not in the Chamber!

Ms N E HANGANA: Madam Speaker, 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 the comments by the DA MEC for Finance and Gender Affairs in the Western Cape, Mr Leon Markovitz, in a debate in the legislature on Tuesday, 13 March:

     ... Ms Essop, who has her back turned to me, which is my favourite
     position ...'';

(2) further notes that a motion calling for the Commission for Gender Equality to investigate the incidence of sexism and the absence of a gender policy in the Western Cape was blocked by the DA;

(3) expresses its utter disgust and condemnation of this kind of entrenched sexism;

(4) calls for an investigation into claims of sexism in the DA-controlled legislature; and (5) urges the Human Rights Commission to investigate claims of sexism in the Western Cape legislature.

[Interjections.] [Applause.]

Mr V C GORE: Madam Speaker, 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 media reports that sex offenders are now targeting children with physical and mental disabilities because they are either unable to speak up or are not able to name their abusers;

(2) notes that when these tormented children make it to court, they are doubly abused by a system that often is uncaring and treats them as adults even if their mental age is that of a child;

(3) further notes that the Sexual Offences Act of 1957 still calls these people idiots and imbeciles; and

(4) calls on

   (a)  the Minister of Safety and Security to address this increasing
       problem as a matter of urgency; and


   (b)  the Minister for Justice and Constitutional Development to
       investigate the practices that physically and mentally disabled
       children endure in the justice system, so as to accord them
       their due dignity as enshrined in the Constitution.

[Applause.]

Prof L B G NDABANDABA: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:

That the House -

(1) notes that yesterday, a long and crippling work stoppage within the Post Office was finally ended;

(2) notes that the length of the stoppage went beyond causing inconvenience and that it had, in fact, a negative impact on our economy;

(3) further notes that while the return to normality will be a welcome relief to all, one is nevertheless constrained to ask what could be done to further improve the negotiating environment so that industrial disputes do not become protracted and drawn out; and

(4) therefore calls on all relevant role-players to further refine instruments for wage negotiations so that employers and employees can find one another without disruption and major work stoppages.

Mr J H MOMBERG: Madam Speaker, 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 that the University of Stellenbosch has agreed that Hellenic may use Coetzenburg for their last home match, and will have further discussions with the club for next season;

(2) believes that the latest move by the University of Stellenbosch administration to allow a match to be played represents a victory in the struggle for equal facilities for all our sporting codes; and

(3) welcomes the decision by the university administration, and calls on the DA-controlled unicity council to allow soccer to be played in the Newlands Cricket Stadium.

[Applause.]

Mrs S M CAMERER: Madam Speaker, 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 with concern the nonavailability of some Ministers to answer questions in the economics cluster scheduled for 28 March this year - some of the Ministers will be accompanying President Mbeki on an extended visit to Cuba, while no reasons have been given for the unavailability of the other Ministers;

(2) further notes that -

   (a)  Ministers are accountable, collectively and individually, to
       Parliament; and


   (b)  their growing trend of nonattendance is indicative of their lack
       of respect for Parliament and is yet another example of the
       scant regard for the legislative arm by the executive, thereby
       undermining our young democracy;

(3) therefore calls on Ministers to treat their parliamentary obligations, rather than international jet-setting and junketeering, as their priority; and

(4) furthermore calls on the Speaker of the National Assembly and the Leader of Government Business to intervene in this matter by reminding the executive of its constitutional duty to Parliament. [Interjections.]

                    ALLOCATION OF SPEAKING TIMES

                         (Draft Resolution)

Mr G Q M DOIDGE: Madam Speaker, I move the draft resolution printed on the Order Paper in the name of the Chief Whip of the Majority Party, as follows:

That the following times be allocated to parties for comment on the amendments to Report 13 of the Public Protector:

     African National Congress: 5 minutes; Democratic Party: 4 minutes;
     Inkatha Freedom Party and New National Party: 3 minutes each;
     United Democratic Movement: 2 minutes; all other parties: 1 minute
     each.

Agreed to.

ADOPTION OF REPORT OF AD HOC COMMITTEE ON REPORT 13 OF PUBLIC PROTECTOR (Decision of Question on Report and on amendments moved thereto)

Mr D H M GIBSON: Madam Speaker, four years after Minister Penuell Maduna breached the Rules of this House and violated the Constitution, this matter is being discussed for the third successive day. A previous parliamentary committee sat for more than a year. The Public Protector investigated the matter at vast expense for another year, and the latest ad hoc committee spent more than a year considering the Public Protector’s report.

The reason that the ANC was not able simply to sweep the matter under the carpet two days ago was because of procedural lapses, which at least gives us the opportunity to again communicate with the public. How unnecessary and what a waste of time and the people’s money this whole saga has been. Because the ANC is determined to protect its own, irrespective of the cost, Parliament has in effect been told to ignore the most important part of the Public Protector’s recommendations.

Furthermore, until the day arrives when the new Powers and Privileges of Parliament Act is passed, Ministers and MPs will know that if they represent the governing party, at least, they can breach the Constitution with impunity and say anything in the House. They can defame, tell lies, undermine other organs of the Constitution, in fact they can do anything, as long as they are prepared to withdraw the remarks when ordered to do so by the Speaker. A quite ghastly precedent is being created in terms of which parliamentary privilege can now be used to protect and even promote grossly inappropriate conduct. I hope hon members of the ANC realise what they have done.

As for Minister Maduna, I was asked yesterday immediately after moving the amendment why I hated him so much. I want to place on record that I do not hate the hon the Minister. In fact, I hate no one in the world. [Interjections.] This is not about the Minister as a person. It is about him as a Minister, as an MP, and about the opposition and the role it has to fulfil. The whole opposition united in condemning the report of the ad hoc committee, and this, in itself, should have made the ANC and Minister Maduna think again.

I want the hon the Minister to consider whether he has acted in accordance with the high standards that one expects of Cabinet Ministers. In particular, as the Minister for Justice and Constitutional Development, he has to be measured against even higher standards than almost anyone else in the Cabinet. His ill-advised comments in breach of the Rules and in violation of the Constitution, have cost the taxpayer millions of rands. Not once has Minister Maduna said to the public: I am sorry.'' Not once has he said:I am sorry, I did not mean to violate the Constitution, and I certainly did not mean to cost the taxpayer millions of rands.’’ [Interjections.] I want to appeal to him today and say: Is it too late, even at this late stage, for the hon the Minister to stand up and say to the people of South Africa, ``I am sorry?’’ I challenge him to do so. [Interjections.]

I move the amendment standing in my name. [Applause.]

Prof L B G NDABANDABA: Madam Speaker and hon members, what is important today is to chart a way forward, so that Parliament can map out rules and regulations relating to any transgression by any individual in any organ of state. This will enable Parliament to have a defined procedure for future alleged transgressions.

Having said that, I wish to state that adopting this report, with the relevant amendment which refers to the Portfolio Committee on Justice and Constitutional Development, will enable the House to finalise this matter speedily. Justice delayed is justice denied.

This exercise will then enable the hon the Minister to concentrate on other matters of state in the criminal justice system, and these are many and varied. We sincerely hope, therefore, that whatever concerns remain unresolved at the back of the minds of some members of this House will be taken care of by this reference.

Siyacela-ke kule Ndlu ukuthi lolu daba lulungiswe ukuze lusheshe luphele futhi lufike ekugcineni. Siyazi sonke ukuthi izinto zoniwa ngomlomo futhi zilungiswe ngomlomo. (Translation of Zulu paragraph follows.)

[We ask this House to quickly rectify this issue so that it will be concluded soon. We all know that things are brought into disarray by means of the mouth, and they are also rectified by means of the mouth.]

Mr D M BAKKER: Madam Speaker, I already stated on Tuesday that this matter should actually never have been on the agenda of a democratic parliament. [Interjections.] I have stated that one would not have expected a Minister of state to act in the manner that the hon Minister Maduna did, especially since he knew, within a few days, that his absurd claim was false and that he was not as knowledgeable as he thought he was. [Interjections.]

Instead of apologising for his absurd statement, he elected to continue making a fool of himself, which resulted in a process which cost the taxpayers in excess of R13 million. One would also have expected that, when a Cabinet Minister violated the spirit of the Constitution, the hon the President would have acted against such a Minister.

‘n Mens sou verwag het dat hierdie Parlement ten minste ‘n versoek van ‘n hoofstuk nege instelling van ons Grondwet baie ernstig sou opneem, en dit behoorlik sou hanteer. Wat ons egter gesien het, is ‘n ad hoc komitee van hierdie Parlement, oorheers deur die ANC, wat uit hulle pad gegaan het om een resultaat, en een resultaat alleenlik, te bewerkstellig, en dit is naamlik om ‘n ANC Minister te beskerm. Om dit te bereik, probeer die komitee se verslag om verkeerdelik die indruk te wek dat die Parlement magteloos is om enige iets te doen, en dat hy nie kan doen wat die Openbare Beskermer van hom verwag het nie. [Tussenwerpsels.]

Duidelik, en sekerlik in opdrag van die uitvoerende gesag, het die komitee ‘n verkeerde klem geplaas op die uitspraak in die De Lille saak om sodoende ‘n verskoning te vind dat die Parlement se hande afgekap is. Die groot verskil tussen hierdie aangeleentheid en die De Lille saak is dat hierdie aangeleentheid baie min te doen het met vryheid van spraak, maar alles te doen het met die verkragting van ons Grondwet. (Translation of Afrikaans paragraphs follows.)

[One would have expected that this Parliament would at least take a request from a Chapter 9 institution of our Constitution very seriously, and deal with it properly. However, what we have seen is an ad hoc committee of this Parliament, dominated by the ANC, that has gone out of its way to achieve one result, and one result only, and that is to protect an ANC Minister. To achieve this, the report of the committee attempts to create the erroneous impression that Parliament is powerless to do anything, and that it cannot do what the Public Protector expected of it. [Interjections.]

Clearly, and surely on the instructions of the executive, the committee incorrectly placed emphasis on the judgment in the De Lille case in order to advance the excuse that Parliament is powerless. The major difference between this matter and the De Lille case is that this matter has very little to do with freedom of speech, but has everything to do with the violation of our Constitution.]

Most opposition parties recommended that at least Minister Maduna should have been instructed to appear in the National Assembly to render his apologies, show some regret at violating the Constitution, and be reprimanded for his actions which have cost the public more than R13 million in legal expenses. [Interjections.] This is exactly what the amendment by the Chief Whip of the Opposition would achieve, and it should be supported by this whole House.

Persoonlik sou ek wou gesien het dat die Parlement die agb Minister ten minste gelas om sy eie regskoste te betaal, maar die besprekings het nooit so ver gekom nie. [Personally, I would have liked to see Parliament at least order the hon the Minister to pay his own legal costs, but the discussions never got that far.]

The New NP supports the amendment proposed by the Chief Whip of the Opposition, but is strongly opposed to the ANC’s own Protector-General’s report which is only a cover-up for the ANC Minister. [Applause.]

Mr M E MABETA: Madam Speaker, hon members, the failure by the SFF and the Auditor-General to perform their duty with regard to informing the Minister about changes in accounting processes did not entitle the Minister, in turn, to undermine the integrity of these organs in his remarks, especially in the absence of conclusive evidence. But, most importantly, we reject the majority party’s insistence that Parliament is powerless to ask Minister Maduna for an unconditional and unqualified apology.

In our view the proposed amendment by the majority party is another attempt to emphasise that Parliament is powerless to do anything about this. We simply ask for the adoption of the report without paragraph 6(3), which moves that this be referred to the Committee on Justice and Constitutional Development and be submitted to the Constitutional Review Committee. We believe that had the Minister given enough thought to these matters and consulted, he could have got conclusive evidence on the issues and we would not have had to deal with this.

We, therefore, reject the amendment of the ruling party, and support the amendment of the opposition. [Interjections.]

Mr L M GREEN: Madam Speaker, hon Ministers and members, I am not sure why the hon the Minister has left this House, because I would have wanted to say what I have to say in his presence. [Interjections.] However, the legal cost of R13 million which has been incurred as a result of Mr Maduna’s statement, should have been foreseen by the hon the Minister.

Chapter 7, section 64, of the Public Finance Management Act places a heavy responsibility on the executive. The hon the Minister should, therefore, have foreseen that his actions would have huge financial implications. However, the Minister continued with his actions and, to this day, I do not think that the Minister has apologised to the public for the loss of this amount of money. The ACDP, therefore, has no option but to support the hon Gibson’s amendment in respect of the adoption of this report. We, therefore, come out in support of the opposition motion. [Applause.]

Dr C P MULDER: Madam Speaker, during the original debate on this report, on Tuesday, the hon member Ms Thandi Modise defended the hon the Minister by saying that as a new Minister in the department, he went around asking questions everywhere, trying to ascertain exactly what happened. I can understand that and I agree with it. The problem is that …

… die Openbare Beskermer in sy verslag bevind het dat die aantygings van die Minister die indruk gewek het dat R170 miljoen weggeraak het en dat die Ouditeur-Generaal daarby betrokke kon wees. Hy bevind in sy verslag dat dié indruk maklik uit die weg geruim kon word.

Die Openbare Beskermer het bevind dat die Minister dié ongelukkige indruk maklik uit die weg kon geruim het deur gepaste oorlegpleging met sy bestuursouditeur of ‘n regstreekse, diepgaande gesprek met die Ouditeur- Generaal self. Die Minister kon met die Ouditeur-Generaal self gepraat het, maar hy het dit nie gedoen nie.

In die lig van dié situasie sal die VF nie die wysiging van die regerende party kan steun nie, maar sal wel die wysiging van die Amptelike Opposisie steun. Die indruk is geskep dat die ANC die geleentheid wat hy gehad het om die saak reg te stel, deur sy vingers laat glip het. Dit is die indruk wat na buite sal bly staan. (Translation of Afrikaans paragraphs follows.)

[… the Public Protector has found in his report that the allegations of the Minister created the impression that R170 million had disappeared and that the Auditor-General could be involved in this. He found in his report that this impression could easily be rectified.

The Public Protector found that the Minister could easily have rectified this unfortunate impression by way of appropriate consultation with his managerial auditor or a direct, in-depth discussion with the Auditor- General himself. The Minister could have spoken to the Auditor-General himself, but he did not do so.

In the light of this situation, the FF will not be able to support the amendment of the governing party, but will, in fact, support the amendment of the Official Opposition. The impression has been created that the ANC let the opportunity which it had to rectify this matter slip through its fingers. This is the impression that will continue to prevail among the public.]

Mr I S MFUNDISI: Madam Speaker, we have noted the amendment by the majority party in respect of this matter. But we in the UCDP remain constant as the North star as regards our findings and recommendations.

Minister Maduna is at fault and the House should support and accept the findings and recommendations of the Public Protector on this matter. The Minister has to apologise for his utterances against the Chapter 9 institutions. This will go a long way towards ensuring that the Constitution is upheld and respected in word and deed.

We reject the amendment by the ANC and support the minority amendment. [Applause.]

Mrs P DE LILLE: Madam Speaker, what will follow after this is a defamation case by the former Auditor-General, Mr Kluever. It will be an embarrassment if the report of Parliament is found in court to be unconstitutional and wrong. [Interjections.] When that happens, we must say to the Minister that he will have to pay his own legal costs and he will have to pay for whatever he is going to be sued for. [Interjections.] It is unfair that the state should pay a cent more on this. I paid my own legal costs and he must pay his. [Interjections.] [Applause.]

As Parliament, we have missed a golden opportunity to show that we respect the highest law in this country.

The MINISTER OF FINANCE: [Inaudible.]

Mrs P DE LILLE: Madam Speaker, I am saying to the Minister of Finance that that is what the Constitution says - that we shall all uphold the Constitution. Therefore, we support the amendment of the hon Gibson. [Interjections.] [Applause.]

Mr J P I BLANCHÉ: Madam Speaker, we have already put the FA’s point of view on the table that we, as members of Parliament, are obliged to ensure - on behalf of the nation - that members of the executive and ourselves remain true to the oath that we took that we will stand guard over the institution of Parliament, the Constitution and especially the institutions mentioned in Chapter 9, which includes the Auditor-General’s office.

Parliament may not, after a Minister has attacked the Auditor-General and was found guilty by the Public Protector of overstepping that rule, change its previous decisions purely because the executive has put pressure on Feinstein, Scopa and its ANC members. [Interjections.]

We are not in a Quatro camp, nor will anybody necklace us for standing up for constitutional democracy. An ANC member verbally abused me when I made my speech. He only demonstrated that our point of view is correct. We will not bow to pressure. Our vote against this report must be registered. We support the hon Gibson’s amendment. [Applause.]

Miss S RAJBALLY: Madam Speaker, proper administration of the law and investigation procedures must be executed within the Constitution. This will ensure effective and impartial results which will dispel any doubts of transparency and accountability.

The MF, therefore, accepts that the Report of the Ad Hoc Committee on Report 13 of the Public Protector be adopted, subject to the substitution for paragraph 5(4)(d) of the following paragraph: ``The committee recommends that these matters be referred to the Portfolio Committee on Justice and Constitutional Development for consideration and report and be submitted to the Constitutional Review Committee.’’ [Applause.]

Mnr C AUCAMP: Mevrou die Speaker, normaalweg sou ek nie baie gretig wees om weer aan die debat deel te neem en weer die Minister aan te val nie. Ek hou nie daarvan om ‘n man wat platlê te trap nie. Die feit is egter: Die Minister wil nie lê nie en hy wil nie eens om verskoning vra nie, en daarom verwelkom ons die geleentheid om weer vandag hierdie dinge vir hom te kan sê.

Die AEB het in die komitee ook hom gevoeg by die minderheidsrapport en sy steun daaraan gegee. Ek was verbaas om in die komitee te hoor dat ‘n minderheidsrapport nie behandel kan word in hierdie Huis nie. Nou het die verslag wel hier met ‘n tegniese omweg beland en ek wil tog daarvoor pleit dat minderheidsrapporte van komitees wel deur die Huis behandel word, anders gaan die publiek nooit weet wat ons standpunte was.

Ek verwelkom hierdie debat. Die AEB ondersteun hierdie mosie van Mnr Gibson heelhartig. [Applous.] (Translation of Afrikaans speech follows).

[Mr C AUCAMP: Madam Speaker, normally I would not be very keen to take part in the debate again and once again attack the Minister. I do not like to kick a man when he is down. However, the fact is: The Minister does not want to stay down and he does not even want to apologise, and therefore we welcome the opportunity to say these things to him again today.

The AEB also associated itself with the minority report in the committee and supported the report. I was surprised to hear in the committee that a minority report cannot be dealt with in this House. Now the report has indeed ended up here via a circuitous technical route, and I would like to appeal that minority reports of committees should, in fact, be dealt with by this House, otherwise the public will never know what our points of view were.

I welcome this debate. The AEB wholeheartedly supports this motion of Mr Gibson. [Applause.]]

Mr A C NEL: Madam Speaker, this amendment that the DP has put before us today is nothing but an attempt to draw the last drop of political capital out of an issue which is already closed. The DP is trying to raise from the dead issues on which it was defeated through thorough and well-considered arguments in the portfolio committee. They are bringing up the same old issues over and over again.

Let us deal with them. Firstly, with regard to the question of the costs, the DP consistently ignores, or chooses to ignore, the fact that the Public Protector told our portfolio committee that every cent spent on this investigation was money well-spent.

Secondly, they are creating, or attempting to create, the impression that it was Minister Maduna who dragged this investigation on for two years. They consistently refrained from telling the public that it was by a decision of the National Assembly that this matter was referred to the Public Protector for investigation. The Minister co-operated fully with that investigation. This is in stark contrast to the attitude adopted by the Premier of the Western Cape, who is refusing to co-operate with an investigation by the Public Protector into alleged corruption. [Applause.]

Thirdly, they are trying to create the impression that we have created the impression that Parliament is powerless. What we have said is that in view of the judgment in the De Lille case the Powers and Privileges of Parliament Act does not provide a proper framework to deal with matters such as these. Therefore we have recommended that, rather than try to set a precedent on an ad hoc basis, we should refer these matters to those structures in Parliament which are best suited to deal with them, to examine them thoroughly, and not in the heat of the moment when there is a juicy political apple dangling in front of the opposition.

We believe that we have recommended a responsible way of taking this matter forward, an approach that will in the long term serve to safeguard the integrity, the efficiency and the dignity of our Chapter 9 institutions. I think the time has come for this House to say that the question of Minister Maduna is closed and what we are opening now is a new chapter, in which we as an institution will try to seek lasting solutions and guidelines to these important constitutional questions. [Applause.]

Debate on amendments concluded.

Amendment by the Chief Whip of the Largest Minority Party put.

Division demanded.

The House divided:

AYES - 75: Abrahams, T; Andrew, K M; Aucamp, C; Bakker, D M; Bell, B G; Beukman, F; Blaas, A; Blanché, J P I; Borman, G M; Botha, A J; Bruce, N S; Camerer, S M; Clelland, N J; Cupido, P W; Da Camara, M L; Davidson, I O; De Lille, P; Ditshetelo, P H K; Dowry, J J; Durand, J; Ellis, M J; Farrow, S B; Frolick, C T; Gibson, D H M; Gore, V C; Gous, S J; Green, L M; Greyling, C H F; Heine, R J; Holomisa, B H; Jankielsohn, R; Kalyan, S V; Lee, T D; Mabeta, M E; Madasa, Z L; Mbadi, L M; McIntosh, G B D; Mfundisi, I S; Moorcroft, E K; Morkel, C M; Mothiba, L C; Msomi, M D; Mulder, C P; Mulder, P W A; Mzimela, S E; Mzizi, M A; Niemann, J J; Ntuli, R S; Opperman, S E; Pheko, S E M; Pretorius, I J; Rabie, P J; Ramodike, M N; Rhoda, R T; Schalkwyk, P J; Schippers, J; Schmidt, H C; Schoeman, R S; Selfe, J; Semple, J A; Simmons, S; Singh, A; Smit, H A; Smuts, M; Sono, B N; Southgate, R M; Swart, P S; Swart, S N; Taljaard, R; Van Deventer, F J; Van Jaarsveld, A Z A; Van Niekerk, A I; Van Schalkwyk, M C J; Viljoen, C L; Waters, M.

NOES - 216: Ainslie, A R; Arendse, J D; Asmal, A K; Balfour, B M N; Baloi, G E; Baloyi, M R; Baloyi, S F; Bekker, H J; Belot, S T; Benjamin, J; Bhengu, F; Bhengu, N R; Bogopane, H I; Booi, M S; Botha, N G W; Buthelezi, M N; Carrim, Y I; Cassim, M F; Chalmers, J; Chauke, H P; Chohan-Kota, F I; Cindi, N V; Cronin, J P; De Lange, J H; Didiza, A T; Dithebe, S L; Doidge, G Q M; Duma, N M; Dyani, M M Z; Ebrahim, E I; Fankomo, F C; Fazzie, M H; Fihla, N B; Fraser-Moleketi, G J; Gandhi, E; Gcina, C I; George, M E; Gerber, P A; Gigaba, K M N; Gininda, M S; Gogotya, N J; Gomomo, P J; Goniwe, M T; Goosen, A D; Govender, P; Gumede, D M; Gxowa, N B; Hajaig, F; Hanekom, D A; Hangana, N E; Hendrickse, P A C; Hlengwa, M W; Holomisa, S P; Jassat, E E; Jeffery, J H; Joemat, R R; Jordan, Z P; Kannemeyer, B W; Kasienyane, O R; Kekana, N N; Kgarimetsa, J J; Kgauwe, Q J; Kgwele, L M; Kota, Z A; Kotwal, Z; Lekgoro, M K; Lekgoro, M M S; Lishivha, T E; Louw, J T; Louw, S K; Lucas, E J; Lyle, A G; Mabudafhasi, T R; Maduna, P M; Magashule, E S; Magazi, M N; Magubane, N E; Mahlangu, G L; Mahlangu, M J; Mahlawe, N; Maimane, D S; Maine, M S; Makasi, X C; Malebana, H F; Maloney, L; Maluleke-Hlaneki, C J;; Malumise, M M; Manie, M S; Manuel, T A; Maphalala, M A; Maphoto, L I; Mars, I; Martins, B A D; Masithela, N H; Mathebe, P M; Matsepe-Casaburri, I F; Maunye, M M; Mayatula, S M; Maziya, A M; Mbete, B; Mbulawa-Hans, B G; Mgidi, J S; Mlambo-Ngcuka, P G; Mlangeni, A; Mnandi, P N; Mngomezulu, G P; Mnumzana, S K; Modise, T R; Modisenyane, L J; Moeketse, K M; Mofokeng, T R; Mogale, E P; Mohai, S J; Mohamed, I J; Mohlala, R J B; Mokaba, P R; Mokoena, D A; Molebatsi, M A; Moloto, K A; Momberg, J H; Mongwaketse, S J; Montsitsi, S D; Moonsamy, K; Moosa, M V; Morobi, D M; Moropa, R M; Morwamoche, K W; Moss, M I; Mothoagae, P K; Mpontshane, A M; Mshudulu, S A; Mthembi-Mahanyele, S D; Mthembu, B; Mtsweni, N S; Mufamadi, F S; Mutsila, I; Mzondeki, M J G; Nair, B; Nash, J H; Ncube, B; Ndabandaba, L B G; Ndlovu, V B; Ndou, R S; Ndzanga, R A; Nel, A C; Nene, N M; Newhoudt- Druchen, W S; Ngaleka, E; Ngcengwane, N D; Ngculu, L V J; Ngubane, H; Ngwenya, M L; Nhleko, N P; Nhlengethwa, D G; Njobe, M A A; Nkomo, A S; Nkosi, D M; Nqakula, C; Nqodi, S B; Ntuli, B M; Ntuli, M B; Ntuli, S B; Nzimande, L P M; Olifant, D A A; Oosthuizen, G C; Pahad, E G; Phala, M J; Phohlela, S; Pieterse, R D; Rabinowitz, R; Radebe, B A; Rajbally, S; Ramakaba-Lesiea, M M; Ramgobin, M; Ramotsamai, C M P; Rasmeni, S M; Ripinga, S S; Saloojee, E; Schneeman, G D; Scott, M I; September, C C; September, R K; Serote, M W; Shilubana, T P; Shope, N R; Sigcau, S N; Sigwela, E M; Sikakane, M R; Sisulu, L N; Sithole, D J; Skhosana, W M; Skosana, M B; Smith, P F; Smith, V G; Solomon, G; Sonjica, B P; Sosibo, J E; Sotyu, M M; Thabethe, E; Tinto, B; Tolo, L J; Tshivhase, T J; Tshwete, S V; Turok, B; Twala, N M; Vadi, I; Van den Heever, R P Z; Van der Merwe, J H; Van der Merwe, S C; Van Wyk, J F; Van Wyk, N; Xingwana, L M T; Zita, L; Zondi, K M; Zondo, R P.

Amendment negatived.

Amendment by the Chief Whip of the Majority Party put.

Division demanded. The House divided:

AYES - 217: Ainslie, A R; Arendse, J D; Asmal, A K; Balfour, B M N; Baloyi, M R; Baloyi, S F; Bekker, H J; Belot, S T; Benjamin, J; Bhengu, F; Bhengu, N R; Bogopane, H I; Booi, M S; Botha, N G W; Buthelezi, M N; Carrim, Y I; Cassim, M F; Chalmers, J; Chauke, H P; Chohan-Kota, F I; Cindi, N V; Cronin, J P; De Lange, J H; Didiza, A T; Dithebe, S L; Doidge, G Q M; Duma, N M; Dyani, M M Z; Ebrahim, E I; Fankomo, F C; Fazzie, M H; Fihla, N B; Fraser-Moleketi, G J; Gandhi, E; Gcina, C I; George, M E; Gerber, P A; Gigaba, K M N; Gininda, M S; Gogotya, N J; Gomomo, P J; Goniwe, M T; Goosen, A D; Govender, P; Gumede, D M; Gxowa, N B; Hajaig, F; Hanekom, D A; Hangana, N E; Hendrickse, P A C; Hlengwa, M W; Holomisa, S P; Jassat, E E; Jeffery, J H; Joemat, R R; Jordan, Z P; Kannemeyer, B W; Kasienyane, O R; Kekana, N N; Kgarimetsa, J J; Kgauwe, Q J; Kgwele, L M; Kota, Z A; Kotwal, Z; Lekgoro, M K; Lekgoro, M M S; Louw, J T; Louw, S K; Lucas, E J; Lyle, A G; Mabudafhasi, T R; Maduna, P M; Magashule, E S; Magazi, M N; Magubane, N E; Mahlangu, G L; Mahlangu, M J; Maimane, D S; Maine, M S; Makasi, X C; Malebana, H F; Maloney, L; Maluleke-Hlaneki, C J; Mahlawe, N; Malumise, M M; Manie, M S; Manuel, T A; Maphalala, M A; Maphoto, L I; Mars, I; Martins, B A D; Masithela, N H; Mathebe, P M; Matsepe-Casaburri, I F; Maunye, M M; Mayatula, S M; Maziya, A M; Mbete, B; Mbulawa-Hans, B G; Mgidi, J S; Mlambo-Ngcuka, P G; Mlangeni, A; Mnandi, P N; Mngomezulu, G P; Mnumzana, S K; Modise, T R; Modisenyane, L J; Moeketse, K M; Mofokeng, T R; Mogale, E P; Mohai, S J; Mohamed, I J; Mohlala, R J B; Mokaba, P R; Mokoena, D A; Molebatsi, M A; Moloto, K A; Momberg, J H; Mongwaketse, S J; Montsitsi, S D; Moonsamy, K; Moosa, M V; Morobi, D M; Moropa, R M; Morwamoche, K W; Moss, M I; Mothoagae, P K; Mpontshane, A M; Mshudulu, S A; Msomi, M D; Mthembi- Mahanyele, S D; Mthembu, B; Mtsweni, N S; Mufamadi, F S; Mutsila, I; Mzizi, M A; Mzondeki, M J G; Nair, B; Nash, J H; Ncube, B; Ndabandaba, L B G; Ndlovu, V B; Ndou, R S; Ndzanga, R A; Nel, A C; Nene, N M; Newhoudt- Druchen, W S; Ngaleka, E; Ngcengwane, N D; Ngculu, L V J; Ngubane, H; Ngwenya, M L; Nhleko, N P; Nhlengethwa, D G; Njobe, M A A; Nkomo, A S; Nkosi, D M; Nqakula, C; Nqodi, S B; Ntuli, B M; Ntuli, M B; Ntuli, S B; Nzimande, L P M; Olifant, D A A; Oosthuizen, G C; Pahad, E G; Phala, M J; Phohlela, S; Pieterse, R D; Rabinowitz, R; Radebe, B A; Rajbally, S; Ramakaba-Lesiea, M M; Ramgobin, M; Ramotsamai, C M P; Rasmeni, S M; Ripinga, S S; Saloojee, E; Schneeman, G D; Scott, M I; September, C C; September, R K; Serote, M W; Shilubana, T P; Shope, N R; Sigcau, S N; Sigcawu, A N; Sigwela, E M; Sikakane, M R; Sisulu, L N; Sithole, D J; Skhosana, W M; Skosana, M B; Slabbert, J H; Smith, P F; Smith, V G; Solomon, G; Sonjica, B P; Sosibo, J E; Sotyu, M M; Thabethe, E; Tinto, B; Tolo, L J; Tshivhase, T J; Tshwete, S V; Turok, B; Twala, N M; Vadi, I; Van den Heever, R P Z; Van der Merwe, J H; Van der Merwe, S C; Van Wyk, J F; Van Wyk, N; Xingwana, L M T; Zita, L; Zondi, K M; Zondo, R P.

NOES - 77: Abrahams, T; Andrew, K M; Aucamp, C; Bakker, D M; Baloi, G E; Bell, B G; Beukman, F; Blaas, A; Blanché, J P I; Borman, G M; Botha, A J; Bruce, N S; Camerer, S M; Clelland, N J; Cupido, P W; Da Camara, M L; Davidson, I O; De Lille, P; Ditshetelo, P H K; Dowry, J J; Dudley, C; Durand, J; Eglin, C W; Ellis, M J; Farrow, S B; Frolick, C T; Gibson, D H M; Gore, V C; Gous, S J; Green, L M; Greyling, C H F; Heine, R J; Holomisa, B H; Jankielsohn, R; Kalyan, S V; Koornhof, G W; Lee, T D; Mabeta, M E; Madasa, Z L; Mbadi, L M; McIntosh, G B D; Mfundisi, I S; Moorcroft, E K; Morkel, C M; Mothiba, L C; Mulder, C P; Mulder, P W A; Mzimela, S E; Niemann, J J; Ntuli, R S; Opperman, S E; Pheko, S E M; Pretorius, I J; Rabie, P J; Ramodike, M N; Rhoda, R T; Schalkwyk, P J; Schippers, J; Schmidt, H C; Schoeman, R S; Selfe, J; Semple, J A; Simmons, S; Singh, A; Smit, H A; Smuts, M; Sono, B N; Southgate, R M; Swart, P S; Swart, S N; Taljaard, R; Van Deventer, F J; Van Jaarsveld, A Z A; Van Niekerk, A I; Van Schalkwyk, M C J; Viljoen, C L; Waters, M.

Amendment agreed to.

Report, as amended, accordingly adopted.

                        APPROPRIATION DEBATE

                       (First Reading debate)

Ms B A HOGAN: Madam Speaker, it is a great honour to speak in the First Reading debate on the Appropriation Bill and the Budget for 2001-02.

There is a great temptation to produce a scintillating economic analysis with statistics and data, and to dazzle members with the brilliance of my economic training. But that is not what Parliament is about. Parliament is about speaking in a language that is accessible and easy for people to understand, particularly when we are speaking about a Budget which will affect the everyday lives of all people in this country. For these reasons, the Budget must be discussed in language that is easily understood. I would like to make a few remarks to introduce this debate. The Budget for 2001-02 has often been contextualised as a movement from macroeconomics to microeconomics. What does this mean? In essence, it means that Government has achieved stability in terms of the major macroeconomic fundamentals that affect the economy. In other words, growth is at a steady pace, inflation is down from double digits, interest rates are on a steady downward course, the balance of payments is no longer the problem it used to be in regard to inhibiting growth and, as was reported yesterday, is in a healthy state.

These major economic indicators are no longer flashing the danger signals that they were flashing when we came to power in 1994. We have, in effect, a benign macroeconomic situation in that regard. To those who feel that economic growth has not reached the targets projected by Gear in 1996, I think we need to point out that over the last decade the gross domestic product has grown systematically from the negative growth in the early years of this decade to a striking 4,2% growth in GDP in 1997.

Then the economy was hit by the impact of the Asian crisis and we were tragically thrown back to 0,7% growth because of the international effect of the Asian crisis on the economy. The remarkable thing is that this economy has survived far better than most economies in the developing world, which were similarly affected by the Asian crisis. The 3% growth which we have now, and the projected 3,5%, are therefore impressive, given the storms that have assailed this economy in the past, and it is remarkable that we have been able to achieve the stability that we have at the present time.

There are two outside factors, the two ``lone riders out on the ridge’’ as I call them, that are going to continue to bedevil our whole approach to growth and social development in this country. Firstly, we face jobless growth and, secondly, we need greater growth as well. I will deal with the greater growth as well as the measures that the Government is taking to facilitate greater growth. But first I want to refer this House to some of the debates that took place around jobless growth. I want to quote from our report which is before Parliament:

Gear has successfully achieved stability in terms of the macroeconomic fundamentals. However, the South African economy has undergone a fundamental structural transformation in recent decades in terms of sectoral change, labour skills, profile and production technology.

The consequence of this transformation is the rising importance of the tertiary sector which, Dr Raja Bidien now argues, generates 65% of the national income. This shift has created a structural reduction in the demand for unskilled labour and an increased demand for skilled labour.

Given this profile, it is likely that poverty and inequality will increase through rising levels of structural unemployment, even within the context of ongoing aggregate growth. This is an important point. Major investment in skills training and employment generation are now the key policy challenges required to capitalise on the achievements of Gear.

A little further on the report reads, and I quote:

Socioeconomic factors related to poverty and inequality are having a negative impact on investor confidence and inhibiting prospects for future growth. Concerns regarding the business risks associated with investing in an economically polarised society as manifested in terms of crime rates, political stability and so on combined with concerns regarding the low skills base of the labour force, limit both domestic and foreign investments.

The message is clear. Like most developing economies, we face a problem of structuring our unemployment. Poverty will continue to have a destabilising impact on this country and, therefore, needs to be addressed with urgency.

The Government’s response to both joblessness growth and insufficient growth is very clear. One is delighted to see the concerted programme that the Government has laid out for growing this economy. It is reflected both in the Budget and in the President’s debate.

The President has said, and I quote … [Interjections.]

The SPEAKER: Order! Mrs De Lille, are you rising on a point of order?

Mrs P DE LILLE: Madam Speaker, one can hardly hear the speaker at the podium. There are too many conversations going on in the House.

The SPEAKER: Order! hon members, it is very difficult to hear the speakers. There are still a lot of private meetings and some have been continuing for a very long time right in front of me. I would urge hon members to please keep quite. Please proceed, hon Hogan.

Ms B A HOGAN: Earlier the President, in his state of the nation address, said and I quote:

… we have decided that, this year, the Government itself, in all its spheres, and the public sector as a whole, must make a decisive and integrated contribution towards meeting the economic challenges the country faces.

The message is clear: Government must intervene in order to grow this economy and have an effect on the quality of life of the people. The objectives that he outlines are higher growth paths, increasing competitiveness and efficiency, raising employment levels and reducing poverty and persistent inequalities. This is to be done by lowering input costs and there is a move towards a managed liberalisation of the energy, transport and communications sectors.

Electricity supplies will be restructured to introduce greater levels of competition. Gas will be used as a new source of energy. There will be expanded investment in rail, road and transport infrastructure. There will be more efficient operation of the ports. There will be steps to increase air traffic to and from the Republic of South Africa. There will be a Telkom public listing. Greater certainty will be reached in the framework of the telecommunications industry and two presidential commissions will be set up to look at this framework.

Other sectors of the economy will be addressed: tourism, agro-processing with export incentives, mining technology, minerals beneficiation and cultural industries. Moreover, there is going to be an enabling framework for economic efficiency and competitiveness, which is welcome. This will include a comprehensive strategy for addressing human resources.

Furthermore, there will be an increasing emphasis on technology, research and development, the building up of an economic infrastructure and access to capital, especially for small to medium enterprises. Access to capital is particularly important for job creation, because it is the small to medium enterprises that need it.

The regulation of the financial services sector is going to be under review, particularly to look at this access to capital. This regulatory environment will impact on economic growth rates, employment levels and competitiveness. Besides these initiatives, we have two other major initiatives to deal with growing the economy. One is the Integrated Rural Development Strategy, and we have already seen nodal points that have been isolated by the President, for input by the state, to grow the economy in rural areas.

The other is the Urban Renewal Plan. Areas such as Alexandra, Mdantsane, Khayelitsha and Mitchells Plain have already been isolated, amongst others, as areas for concerted attention from the state. Those who have witnessed the decisive action taken by the Gauteng province in Alexandra, and the morale boost that that has given to the residents of Alexandra, let alone those in Sandton, will be able to appreciate the impact of these decisive interventions by the state to grow this economy.

Furthermore, the state is looking at the question of poverty relief and how we grow our people into this economy. It has always surprised me that in the debate - and it is a legitimate debate - about the exodus of skilled people from this country, we never include a debate about the skills that are lost because our people are not developed. That is a major focus of Government in the forthcoming year namely a human resource development programme. Hopefully, it is going to be extensive, intensive and purposeful, because this is going to facilitate the access of our people to the economy and will grow the economy.

We also need to look at poverty relief itself. We have to be realistic that there are people who are going to be out of the net of growth, and who are going to continually have to fight a daily battle for survival in this country. Government is proposing a number of very important initiatives in this regard.

Increasingly, we have looked at the Poverty Relief Programme, which now has definite figures attached to it and plans and programmes connected with it, I must mention, by Water Affairs and Forestry, Public Works’ Community- Based Public Works Programme, and Environmental Affairs and Tourism.

We also need to look at the measures being taken in this Budget to deal with poverty relief. Fifty-eight per cent of nonintraspending of Government is directed towards spending on education, health and welfare. Then, there are smaller measures - the zero rating of VAT on illuminating paraffin will make a substantial difference to people who are poor. Moreover, the commitment by Government to make social grants inflation linked in the future will be welcomed by many people who have had those concerns.

In addition, we are looking at a major infrastructural investment programme. Over the next three years, R7,8 billion is going to be directed towards infrastructural investments. We will see R1,5 billion going to the provinces for repairing flood-related damage. R6,3 billion will go towards infrastructural investments in the provinces. For instance, R1,5 million is going to roads. A similar amount is going to the building of schools. R510 million is going to health facilities. A further amount of R214 million is going to rural development projects.

That infrastructural investment is vital. Infrastructural investment by the state in capital programmes not only generates jobs but generates the infrastructure, both economic and social, that is critical for the wellbeing of our people and for the economy.

Moreover, there is an amount of R863 million that is going to be devoted to the construction, rehabilitation and maintenance of police stations, courts and prisons. So, the infrastructural programme is a major flagship programme of Government addressing itself both to employment creation and the alleviation of poverty, and by providing the necessary infrastructure for this economy to grow.

For those people who have been calling out and heckling at the sides here, that the budget deficit is going to grow out of control, they certainly have not read the Budget documentation before us. The fact that the state is able to intervene in this decisive manner is precisely because we are now able to earn and have been able to gain benefits from the debt reduction programme that the state embarked on so energetically since it came to power in 1994, to the extent that we have now brought interest payments and state debt under control and are able to release R10,2 billion for spending to meet the needs of the economy.

I believe that we have indeed moved from the macro to the micro. I believe that that is a significant watershed in the economic growth and wellbeing of our people. Moving to the micro means that we will be able to unleash energies that we were not able to before. I also believe that there is another way in which we can see this. Those who wish to believe that the long road ahead will constitute one giant leap forward are mistaken. If members look at the pattern of growth and at what we are achieving in this country, it is stable, steady, focused and directed. It is not the giant leaps of imagination which fall away in the washes of time. It is focused and sustained progress.

I would like to congratulate the Ministry of Finance, the SA Revenue Service and the Cabinet for producing, in a thoughtful manner, this Budget which will go a long way towards meeting the needs of our people. [Applause.]

Mr K M ANDREW: Madam Speaker, I just want to point out to the hon Ms Hogan that the comment made by one of my colleagues on this side of the House was not in relation to the deficit; it was in relation to the President’s jet. But, obviously, in concentrating on her speech, she did not hear that clearly.

In some respects, today’s debate on the Budget is a celebration of a victory. When the Gear strategy was introduced in June 1996, there was a real danger that South Africa could slide into a debt trap. This did not happen, and today our debt position is a very sound one. Unfortunately, in other more important respects we are not in a position to celebrate a victory.

The primary objectives of economic policy should be to reduce unemployment and eradicate poverty, but this has not happened. On the contrary, they have increased relentlessly year after year. In tackling these challenges, we must have certainty and consistency in fiscal policies. Although only parts of the Gear strategy were implemented, it provided a focused basis against which fiscal policies could be measured and predicted. This is unfortunately no longer the case.

One of the greatest problems with this Budget is the degree to which it contains contradictions and inconsistencies. To encourage employment on the one hand, there are to be tax incentives amounting to R600 million. But Government is to increase the skills development levy from 0,5% to 1%, which will take an additional R1,5 billion from employers and make employing people more expensive.

Illuminating paraffin is to be zero-rated for VAT purposes, which will assist many poor families and cost the state R400 million, while social and old age pensions, which constitute the most effective form of welfare distribution at present, increase by a meagre R30 per month, leaving hundreds of thousands of families worse off than they were a year ago.

We are told that Government is committed to a steady relaxation of exchange controls, but there is precious little in this Budget giving expression to such a policy, and in the view of many informed analysts the effects of this year’s changes will be to tighten, not relax, exchange control.

Government claims to be committed to poverty alleviation as a high priority. Unfortunately, the reality does not support this claim. One department after the other does not spend the money allocated to it, so denying poor people goods and services they desperately need.

Over and above this inability to deliver is the disgraceful situation of Government sitting on billions of rands which should be used for the benefit of ordinary people. I am referring to the proceeds of the lottery, the Umsobomvu Fund and the Skills Development Fund, which remain largely undistributed.

These are particular problems relating to a lack of consistency in this Budget. However, the key issue remains: What must be done to obtain the investment and the 6% growth per year which we need to be able to reduce unemployment and poverty?

At a meeting with the Portfolio Committee on Finance in August last year, the Governor of the Reserve Bank referred to investor perceptions and asked the following question: What is the missing ingredient in South Africa? Perhaps sentiment is a bigger problem than we think. I believe that it is of critical importance that we try to identify what the missing ingredient or ingredients are if we are going to be able to meet our challenges.

I would like to put forward some thoughts on this matter. We are attracting neither the foreign direct investment nor the domestic fixed investment which we need to increase our growth rates. There are many factors that impact on investment decisions. However, if there is a lack of domestic investment, this will deter most foreign investors who believe that domestic investors are better informed that they are. In other words, we will not attract the foreign direct investment which is needed, unless there is sufficient domestic fixed investment in the first place.

The aspect of low domestic fixed investment which I want to focus on today, is what the Director-General of the National Treasury refers to as: Continued lacklustre domestic confidence''. She identified this as the major domestic factor which could pose a negative risk to the inflation and GDP growth forecasts of Government. I believe that a major cause of this continued lacklustre domestic confidence is that very large numbers of the white community feel marginalised, alienated, insecure and often unwelcome in their own country. They may or may not be justified. [Interjections.] I hear the hon Minister of Safety and Security, who could not care two hoots about the poor, saying shame, shame’’, because he has a fat job, a big salary, a big car, and a big house. [Interjections.] [Applause.] They may or may not be justified in having those feelings, but the ramifications for our economy and country are enormous.

It is not my intention this afternoon to lay the blame on anyone’s shoulders, but rather to try to analyse the extent of the problem and what can be done about it. While one imagines that investors make decisions on predominantly rational grounds, the fact is that if an individual is feeling disillusioned, unhappy or insecure, that is going to impact on investment decisions that he or she makes.

The most dramatic and drastic manifestation of disillusionment or insecurity is when people vote with their feet and emigrate. Unfortunately, South Africa has suffered a massive brain drain. The evidence is overwhelming. A 1999 survey by The Economist found that the likelihood of South African professionals emigrating was among the highest in the world. In the World Economic Forum’s World Competitiveness Report issued in September last year, the loss of skills in South Africa caused by emigration was the third most serious amongst 59 countries surveyed. [Interjections.]

Mr J H MOMBERG: Mostly DP voters.

Mr K M ANDREW: That hon member is about to be an ambassador, and will get free food and a free house - no wonder he does not care. [Interjections.] A US-based credit rating agency estimates that 16 per cent of South Africans with tertiary education live abroad. A survey last year found that four out of 10 heads of South African companies would jump at the chance to take jobs overseas if they were offered them.

In a worldwide survey conducted by a Swiss company last year, South Africa was singled out as the country, after Russia, in which well-educated people were least likely to stay. A survey conducted this year among information technology professionals in South Africa indicated that 54% were considering leaving this country within two years and 26% were very likely to look for a job overseas. Of the SA Institute of Chartered Accountants’ 19 099 members, nearly 22% were living abroad at the end of 2000. This figure excludes South-African- trained chartered accountants who are no longer members of the SA Institute of Chartered Accountants. Official statistics released in London in June last year revealed that 1 416 nurses and midwives from South Africa registered for work in the UK in the year to March 2000, a 40% increase over the previous year.

The best estimates are that about 250 000 people have emigrated from South Africa in the last eight years. The estimated costs to the country of this emigration are staggering. There is an estimated R8,4 billion in lost income tax and a further R285 billion in potential contributions to the gross domestic product, which would make money available for poor people for houses, jobs, education and health.

High-income and high-wealth individuals are mobile, but we cannot afford to lose them. South Africa has to keep and grow its capital and its skills if it is to succeed. One could go on, but the point is clear. Far too many highly skilled South Africans do not look upon their prospects in South Africa in a favourable light.

The reasons for emigrating are many and varied. I would like to identify only two. A South African doctor in Canada, when asked why he had left South Africa, simply replied: ``I want my family to be safe.’’ One of the top matric students of 1994 who is now living in London gave as his reason:

I want my children to be able to grow up without South Africa and its anger. I am tired of having to feel guilty. I simply want to be free.

[Interjections.] This problem must be addressed sooner rather than later, because we cannot afford to continue losing so many of our skilled people.

There is just one further aspect which I wish to mention in this regard. It is the tax burden on individuals in the middle-income brackets which has a major effect on the quality of life of many young qualified people.

Let me illustrate what I mean by using a married person with two school- going children and a taxable income of R100 000 a year as an example. That person pays R22 520 in personal income tax. However, to educate two children in a good public school, belong to a medical aid scheme, pay for security services and abnormally high insurance, because this hon Minister cannot do his job, and protect their home or car and possessions costs an additional R25 000 per year.

The direct result is an expenditure of R47 000, or 47% of this individual’s taxable income being spent on tax and these essential services, most of which should have been provided by the state in the first place. A good job in some other country must be tempting for people with skills who are struggling to make ends meet.

In 1994 South Africa produced a political miracle which astounded the world. We now need an economic miracle so that we can get the investment and the growth required to tackle unemployment and poverty effectively. The process leading to the political miracle involved inclusive and time- consuming discussions and negotiations and a willingness to compromise. We need to follow a similar process to bring about the economic successes that we want.

It is quite true that in normal democratic terms the Government has a mandate to implement its own economic policies irrespective of what anybody else thinks about them. But we all know that that will not in itself solve the problem. I call on the hon President and the Minister of Finance today, to give serious consideration to initiating a process which will include all stakeholders from all sectors of business, labour, civil society and all political parties to try to achieve a consensus and a unity of purpose, on the way forward in terms of economic policy.

Gear has served some useful purposes, including providing a focus for fiscal and economic policy. We need a new agreed strategy for investment, growth, job creation and poverty eradication. South Africa has produced one miracle in recent times and there is no reason why we should not be able to produce another. If we fail to do so, the Minister of Finance will not be tasting the sweet fruit of liberty, but will be dealing with the grapes of wrath of the poor and the unemployed and what they heap upon him.

Until we can address these problems in a way that is going to address unemployment and poverty vigorously, the DA will not be supporting the Budget.

Gen C L VILJOEN: Mevrou die Speaker, ek is dank teenoor u verskuldig en ook die hoofsweep van die ANC wat aan my die ekstra tyd gegun het, asook die geleentheid wat ek gebied is om aan hierdie debat te mag deelneem. Dit word opreg waardeer, want ek wil vandag afskeid neem. Dit is my laaste bydrae tot ‘n belangrike debat in hierdie Huis. Op 31 Maart tree ek uit as leier van die VF en gaan aan die einde van April as lid van die Parlement bedank. (Translation of Afrikaans paragraph follows.)

[Gen C L VILJOEN: Madam Speaker, I owe you and the Chief Whip of the ANC a debt of gratitude for granting me extra time, as well as affording me the opportunity to take part in this debate. It is greatly appreciated, because today I want to say farewell. This is my last contribution to an important debate in this House. On 31 March I shall be retiring as the leader of the FF and at the end of April I shall be resigning as a Member of Parliament.]

Today, I say farewell from this podium. I will retire as the leader of the FF at the end of March and will resign as an MP at the end of April.

In 1994 was my strategiese leiding aan my ondersteuners om nie buite die Suid-Afrikaanse politiek en veral die ekonomie te bly nie. Deelname is deur direkte onderhandeling bewerkstellig as alternatief tot geweld en dit het sy waarde gehad tot en met 1996. Nou, ‘n teleurstellende aantal jare daarna, is my strategiese insig dat die politieke versplintering van die Afrikaner, asook die afsydigheid van die ANC oor hierdie beleid, dit nie nou en in die afsienbare toekoms moontlik maak om as ‘n enkele politieke party die praktiese sy van selfbeskikking te beding op ‘n noemenswaardige skaal nie.

Dit sal slegs moontlik wees indien die Afrikanerstrukture oor partypolitieke grense heen genoeg solidariteit toon om gesamentlik te druk vir selfbeskikking. Intussen moet die VF-politiek steeds bedryf word om politieke bemarking te handhaaf, maar buite die politiek lê daar groot werk. Die stryd duur voort. ‘n Begrotingsdebat soos hierdie is altyd ‘n barometer van breë politieke en ekonomiese vordering. Ons het sedert 1994 sewe geleenthede daarvoor gehad. Kenmerkend van al hierdie debatte en begrotings was sukses met fiskale balans en dissipline op die hoë vlakke, terwyl daar probleme was met die skep van die regte klimaat om ekonomiese groei te verbeter op die laer vlakke. Dit raak die lot van almal, van die armstes tot entrepreneurs tot kapitaliste. Die hoe verwagtinge van 1994 was rondom die ekonomie.

Eintlik het die destydse NP-leiding die land met die belofte van ongekende ekonomiese groei omgekoop tydens die referendum. As daar net vrede sou kom en ``een mens een stem’’ aanvaar sou word sonder enige kwalifikasie, sou yskaste sowaar uit die blou lug val en die werkloosheid sou vinnig opgelos wees. Nou weet ons dit was ‘n droom. ‘n Plegtige skikking is tog bereik, wat gekulmineer het in die Grondwet van 1996.

Alles het so goed verloop en nou is die ekonomiese groei teleurstellend. Ons het reeds by van die vorige sprekers daarvan verneem dat die groeikoers slegs die helfte van die noodsaaklike 6% gaan wees. Nou daal ons rand, werkloosheid styg, misdaad raak buite beheer, veiligheidsmagte verswak en is gedemotiveerd en die massas begin die spoorwegstasies en treine afbrand. So kan ek voortgaan, maar ek wil nie negatief wees vandag nie. Waar het alles fout gegaan? Ek dink daar skort iets met gesindhede. Die fondamente is nie stewig genoeg in dié verband nie. Die struktuur wat ons oprig, skep nie vertroue nie; ook nie wedersydse respek, versoening, vrede of rustigheid nie. Dalk moet ons weer ‘n veelpartykonferensie hou met die voordeel van terugblik, veral noudat ons ook worstel met die groot verwagtinge rondom die ekonomie wat verwesenlik kan word deur mikro- ekonomiese groei. Dit is ‘n hoë prioriteit. Die vraag is egter, hoe?

Die eerste jare na 1994 het hoop geskep. Daar was ‘n vaste voorneme by feitlik die hele land oor die gees van die ooreenkoms: Begrip en nie wraaksug nie; herstel en nie vergelding nie; medemenslikheid en nie viktimisasie nie.

Ek het die voorreg gehad om saam met mnr Mandela op ons eerste ontmoeting die kernvraag oor stabiliteit tussen die Afrikaner aan die een kant en sy swart ondersteuners aan die ander kant te bespreek. Vir daardie tyd was dit natuurlik ‘n kritiese saak. Na die verkiesing het ek weer die voorreg gehad om na ‘n lang gesprek te hoor dat sy deur altyd oopstaan vir die probleme van die Afrikaner. Van groot betekenis was die gesindhede waarin dit plaasgevind het. Transformasie sonder goeie gesindheid en welwillendheid is gedoem.

My party het die belange van die Afrikaner probeer behartig. Die Afrikaner is ‘n inheemse volk soos een van die baie ander op hierdie kontinent. My party glo dat die verskillende volke, groepe en mense van hierdie land interafhanklik van mekaar is en mekaar nodig het. Ons doel was en is steeds ‘n konstruktiewe opposisie en ons wil ‘n eiesoortige Afrika-tipe demokrasie help skep. Ons beleid van selfbeskikking is ‘n internasionaal geloofwaardige een en volgens die konsep van interne selfbeskikking kan sulke volke en groepe boustene vorm van ‘n groter nasiestaat. In 1994 was daar genoeg steun daarvoor en 37% van die Afrikanerkiesers het daarvoor gestem. Daar was werklik hoop.

Die eenparige aanvaarding van die klousule ten opsigte van selfbeskikking in die 1996-grondwet was ‘n prestasie vir alle partye. Van groot betekenis na 1996 egter, was die gebrek aan goeie gesindhede. Vervreemding het gevolg

• ons het dit netnou ook van die agb Andrew gehoor. Daar was die KwaMakuta- saak, die WVK, die staking van bilaterale gesprekke met die VF, die aanslag op Afrikaans. Wat ons voorgestel het, was billik en eenvoudig. Ons het gevra vir kulturele selfbeskikking soos veeltaligheid, eie kultuurrade, streeksoutonomieë vir gebiede soos die klein, afgeleë homogene gemeenskap in Orania. Voorts het ons gevra vir toestemming tot ‘n langtermynplan om ‘n ylbewoonde byna woestyngedeelte van ons land te ontwikkel as ‘n toekomstige tuisland vir Afrikaners. Die meerderheidsparty het vordering gestol in hierdie verband. Dit was vir ons natuurlik in die party ‘n groot dilemma en die opposisiepartye het goed geoes onder ons ondersteuners. ‘n Party wat nie lewer nie, kry teëspoed. (Translation of Afrikaans paragraphs follows.)

[In 1994 my strategic leadership to my supporters was not to stay out of South African politics and the economy in particular. Participation was achieved by means of direct negotiations as the alternative to violence and this was of value up to and including 1996. Now, a disappointing number of years later, my strategic insight is that the political fragmentation of the Afrikaner, as well as the aloofness of the ANC towards this policy, does not make it possible now or in the foreseeable future to negotiate the practical side of self-determination as a single political party to any significant extent. This will only be possible if Afrikaner structures across party-political lines show sufficient solidarity to press for self-determination together. In the meantime FF politics must still be practised in order to maintain political marketing, but outside of politics there is a great deal of work to be done. The struggle continues. A Budget debate such as this is always a barometer of broad political and economic progress. Since 1994 we have had seven opportunities for that.

Characteristic of all these debates and budgets was success with fiscal balance and discipline at the high levels, while there were problems with creating the right climate for improving economic growth at the lower levels. This affects everyone’s destiny, from the poorest to entrepreneurs to capitalists. The high expectations of 1994 centred around the economy.

Actually the then former NP leadership bribed the country during the referendum with the promise of unparalleled economic growth. If there were peace and if ``one man, one vote’’ were accepted without any qualification, fridges would actually fall from the sky and unemployment would be resolved quickly. Now we know that that was a dream. A solemn agreement was nevertheless reached, which culminated in the Constitution of 1996.

Everything went so well, and now the economic growth is disappointing. We have already heard from previous speakers that the growth rate is going to be only half of the essential 6%. Now the rand is falling, unemployment is increasing, crime is getting out of control, security forces are weakening and are demotivated, and the masses are beginning to set fire to railway stations and trains.

I can continue in this vein, but I do not want to be negative today. Where did everything go wrong? I think there is something wrong with attitudes. The foundation are not solid enough in this regard. The structure that we are building does not inspire confidence; nor mutual respect, reconciliation, peace or serenity. Perhaps we should hold another multiparty conference, with the benefit of hindsight, especially now that we are also struggling with the high expectations in respect of the economy that can be realised by way of microeconomic growth. This is a high priority. The question, however, is: How?

The first years after 1994 inspired hope. Virtually the entire country was firmly resolved on the spirit of the agreement: Understanding and not vengefulness; reconstruction and not retribution; fellow-feeling and not victimisation.

I had the privilege, at our first meeting, to discuss with Mr Mandela the key question about stability between Afrikaners on the one hand and his black supporters on the other. For the time it was a critical matter, of course. After the election I once again had the privilege, after a long conversation, to hear that his door was always open to the problems of the Afrikaners. Of great significance was the attitudes with which these meetings took place. Transformation without a positive attitude and goodwill is doomed.

My party tried to serve the interests of the Afrikaners. The Afrikaner is an indigenous people, like one of the many others on this continent. My party believes that the various nations, groups and people of this country are interdependent and that they need one another. Our purpose was and still is constructive opposition and we want to help to create a unique African type of democracy. Our policy of self-determination is an internationally credible one and according to the concept of internal self- determination such nations and groups could form the building blocks of a larger nation-state. In 1994 there was sufficient support for that and 37% of Afrikaner voters voted in favour of it. There was real hope.

The unanimous adoption of the clause relating to self-determination in the 1996 Constitution was an achievement for all parties. Of great significance after 1996, however, was the lack of positive attitudes. Alienation followed - we also heard this from the hon Andrew a while ago. There was the KwaMakuta case, the TRC, the cessation of bilateral talks with the FF, the onslaught on Afrikaans.

What we proposed was reasonable and simple. We asked for cultural self- determination such as multilingualism, own cultural councils, regional autonomies for areas such as the small, remote homogenous community of Orania.

We furthermore asked permission for a long-term plan to develop a sparsely populated, semi-desert area of our country into a future homeland for Afrikaners. The majority party stalled progress in this regard. This was, of course, a huge dilemma to us in the party and the opposition parties won over quite a number of our supporters. A party that does not deliver suffers setbacks.]

The Afrikaner people have been decimated politically, at least temporarily, and appear to have lost their identity, maybe in the pattern of the late Machel when he concluded: ``For the sake of the nation, the tribe must die.’’ This is my major concern about the direction in which the majority party is taking this country: nation-building based on individualism only, ignoring collectivism. And it is all being done without consultation, which is the same mistake that the old NP made in the previous dispensation.

Our traditional leaders have a similar problem. Of course, there are many individuals who prefer individualism, including the DA. It might even be possible that the majority in the country prefer the ideal of individualism. But there is a substantial part of this country, across the colour spectrum, that prefers the communal way of living. Why not allow them to be happy as building blocks in the new country?

The issue of minority rights is a thorny problem here and in other African states. Ignoring the problem will not solve it. The ANC might feel comfortable with its majority, being in a position to steamroller Bills on nation-building through Parliament. But this is not a wise approach, and together we have missed an opportunity between two important communities.

To come back to this Budget debate, success in promoting microeconomic growth is very important and is only partly dependent on the infrastructure of the Government. The real success depends on the private enterprise of entrepreneurs. That, again, is dependent on expertise and know-how. The way to uplift the poor is to uplift the entrepreneurs. In South Africa the real challenge is not to pay for the past, but voluntarily to participate in passing knowledge to willing and hardworking entrepreneurs with potential.

Mentorship is what is needed from one community to the other. But this is a fragile condition of the mind of the people and a willingness that is easily damaged by the aggressive atmosphere of majoritarianism. This willingness can also be easily damaged by the never-ending blame for the past, as if all the mistakes were made by one side only. This willingness is fostered by a sense of togetherness, such as one finds in communities.

Our traditional leaders have a role in development initiatives and harnessing communities. This willingness is fostered by a healthy interaction between communities at grassroots level. In short, the relationships and goodwill between communities need to be created and harnessed for the purpose of microeconomic development and growth. Working together in mutual support will bring reconciliation. Blaming and shouting will bring alienation.

But let me be honest with members. I have been experiencing some frustration about the way our democracy works, particularly the majoritarian aspect of it. The larger the majority, the more humble the party should be. Members from the majority party dominate each commission and committee and frantically organise it to ensure that this will always be the case, even with regard to the more neutral committees such as the one on ethics.

This House has become a talk shop. Speaking times and proportional allocation are a problem. What is the point of speaking for two minutes on some very important and relevant subject? Many parties can exercise very little influence. The bilateral interaction has stopped. Even with my knowledge of defence I am not allowed a seat on the Joint Defence Committee.

I think the general style, namely the Westminster style of politics in our House, is foreign to Africa. The present political division is based on racial polls and the confrontational style of politics is therefore hardening racial attitudes. In my opinion we should all be more humble in our interaction. We should always show mutual respect and commitment so as to bridge the divisions of our past. Yesterday’s subject for discussion is an example of this.

Die punte van kritiek wat ek gelug het, is goed bedoel. Laat ons streef na uitnemendheid sodat ons demokrasie kan groei tot ‘n voorbeeld in Afrika. Ek stel intens belang in die sukses en die groei van ons land en kontinent, veral wat betref die sake van selfbeskikking, vreedsame naasbestaan en ekonomiese opheffing. Ek sal steeds buite die aktiewe politiek my daarvoor beywer om stabiliteit in Suid-Afrika te help verseker. Ek wens die agb Minister sukses toe met sy strategie van mikroekonomiese groei. Mev die Speaker, ek dank u as voorsittende beampte, saam met u kollegas vir die aangename wyse waarop ons kon saamwerk. Ek dank almal: Die uitvoerende gesag en die lede van hierdie Huis vir die voorreg om saam met hulle te kon dien in ‘n gees van besonderse wedersydse respek. Daardeur is vriendskappe en goeie verhoudinge opgebou wat aangenaam was.

My dank aan die personeel, amptenare en polisie en almal wat so vriendelik en wellewend was. Goeie verhoudinge en wedersydse respek moet ‘n steunpilaar vir almal wees, want dan oorbrug ons verskille. My dank aan my ondersteuners vir hul steun. My beste wense vir almal in hierdie Huis. Mag hulle die wysheid van Salomo kry om hierdie belangrike taak voort te sit. (Translation of Afrikaans paragraphs follows.)

[The points of criticism that I raised were well intended. Let us strive for excellence so that our democracy can grow into an example to Africa. I am intensely interested in the success and growth of our country and continent, in particular as far as the issues of self-determination, peaceful co-existence and economic upliftment are concerned. I shall still, outside of active politics, endeavour to ensure stability in South Africa. I wish the hon the Minister every success with his strategy of micro- economic growth.

Madam Speaker, I thank you as presiding officer, along with your colleagues, for the pleasant manner in which we could work together. I thank everyone: The executive and members of this House for the privilege of serving with them in a spirit of exceptional mutual respect. In this way friendships and sound relations were forged, which was enjoyable.

My thanks to the staff, officials and police and everyone who was so friendly and courteous. Sound relations and mutual respect should be the mainstay of everyone, because then we bridge differences. My thanks to my supporters for their support. My best wishes to everyone in this House. May they receive the wisdom of Solomon to continue this important task.]

Ngithi kumalungu kudingeka asebenze. Muningi umsebenzi. Intuthuko ihambisana nomsebenzi. [I would like to tell hon members that they should work. There is a lot of work to be done. Development goes together with work.] Dankie. Bly rustig. Siyabonga. Salani kahle. [Ihlombe.] [Thank you. Keep well. Applause.]]

Mr A J FEINSTEIN: Madam Speaker, may I begin by verbalising what I think this whole House feels in paying tribute to and acknowledging the contribution that Gen Viljoen has made to this House and to the country. While some of us may disagree with certain of his political objectives and views, no one would dispute that he has held them with integrity and as part of a real commitment to creating a better South Africa. His courageous role in the lead-up to our first democratic election will never be forgotten. He will be missed by this House and I am sure we all join together in wishing him well for the future. [Applause.]

Hon Speaker, hon Minister, I rise to support this Budget, hopefully not to rage on the edge of lunacy and paranoia. It marks a logical continuation of the past Budgets of this Government, while leading us in extremely important new directions: the old is the maintenance of sound macroeconomic fundamentals, while the new is an intensified focus and significant increase in social spending and investments on the supply side of the economy. These two thrusts are inextricably linked. The stabilisation which has been universally hailed has created the conditions for the next phase of reform. But before looking at the details of this process, let me restate that everything we do in this House should be premised on how best we can significantly improve the material quality of life of the vast majority of our people.

For, as the hon Barbara Hogan mentioned, besides the moral imperative of engendering greater equality by improving the lives of the poorest of the poor, there is a hard-nosed economic rationale for doing so as well. We are not alone in this quest. Throughout the developing world, the struggle for liberation from poverty and misery continues.

Where we are unique is that we exhibit the most bitter of social outcomes: destitution amid plenty. Because of the lunacy of apartheid, this inequality remains cleaved along racial lines. Sixty-one per cent of Africans in our country can be classified as poor, compared to one per cent of whites.

Globally, though, progress has been made in the battle against poverty and inequality. Joseph Stiglitz, the former Chief Economist at the World Bank, in concluding an impressive study on economic reform, reminded us that the past half century has seen remarkable improvements in living standards of hundreds of millions of people in the developing world. The challenge for this new millennium, he stated, is to see those successes, the benefits of democratic, equitable and sustainable development, shared by the billions more who have yet to taste their fruits.

The study to which I have referred reflects that so-called first stage economic reforms - the stabilisation of the macroeconomy and liberalisation

• have brought significant benefits to, for instance, Latin America, where inflation levels have plummeted from an average of over 100% in the early 1980s to just above 10% in the late 1990s. Growth levels have grown from around 1% per annum to around 5% for the same periods. However, much more remains to be done with respect to poverty alleviation and income distribution. In Latin America, again, with the exception of Chile and Bolivia, poverty has not been significantly reduced.

So, while there is widespread consensus amongst economists that macroeconomic stability is a precondition for sustainable growth, to realise the full benefits of this stabilisation and thus to raise output growth, to improve equity, and increase opportunities and outcomes for the poorest requires what are called second stage reforms. These include microeconomic and supply side interventions, increased investment in infrastructure, institutional reform, improved delivery of social services and improvements in the legal and judicial services.

In reading this recent study, I was astonished by how regularly it reflects many aspects of the direction that has been taken by the Budget before us. However, as we discuss this Budget in this House today, we must combine ambition with realism.

The study submits that structural reform takes time, because the policy environment must become credible and this credibility must be earned through overall consistency and persistence of policy. That credibility, with our first phase of reforms, is clearly growing all the time.

With respect to the second stage reforms, there is an enormous amount that still has to be learned around the world about timing, sequencing and maximising synergies generated by reform packages. Internationally, at present, no blueprint for these reforms exists.

So, here in South Africa, there is an enormous challenge for Government to place on the table a holistic and integrated strategy that combines the myriad of admirable initiatives that have been outlined in this Budget and in the President’s state of the nation address. In other words, it is up to us to create our own unique blueprint where others have thus far feared to tread.

On the issue of growth we must, as I say, remain ambitious and realistic. We know what growth level we need. But we are foolish if we believe that there is a magic formula eg privatisation of everything on the planet, or massive demand management, or that sustainable high growth levels are achievable in a matter of a few short years.

The issues identified by the President and the Minister to engender higher growth include rural development and urban renewal strategies; intensification of microeconomic and supply side interventions; significant increases in infrastructure spending; a massive focus on human resource development for life-long learning which, I would suggest, requires the skills development levy; more rapid restructuring of state assets; attention to the growth in entry level sectors such as tourism, household and cultural services; continual building of trust between Government and business, business and labour; and the expansion of the welfare net which, as Prof Abedian stated during our Budget hearings, will contribute directly and indirectly to increased growth. These interventions are all in the right direction.

We know and must acknowledge that the challenges remain huge. However, to suggest, as the hon Ken Andrew does, that this is a Budget of contradictions and inconsistencies, that there is what he describes as lacklustre domestic confidence and consequently people feel unwanted and unhappy, I would suggest, borders on being nonsensical.

There is no doubt that there are certain people in our society who do feel that things are not as they were. The vast majority of South Africans celebrate the fact that things are not as they were … [Interjections.]

Mr K M ANDREW: Why do you not invest here?

Mr A J FEINSTEIN: I suppose, in my own personal case I am, because I have unit trusts.

What really concerned me - and I will return to this in far more detail shortly - was the way in which the issue of the loss of people, the loss of skills, was characterised by the hon Ken Andrew, which, as I suggested, bordered on paranoia. It made me think that perhaps his greater concern, rather than the loss of skills and talent, was the loss of voters to his party.

Unfortunately, the intervention by the hon Ken Andrew reflected a cynicism that pervades so much of the DP and the DA comments on everything, and it is part of a broader mindset of permanent disaffection. It responds to issues, from the economy to national symbols, in a way that suggests that we are living in Zurich rather than South Africa, in a way that suggests that history’s only use is to be forgotten. This particular aspect of the mindset was captured in this morning’s Business Day where Drew Forrest made the point, and I quote:

The DP often comes across as insensitive and indifferent to the black experience of apartheid, reinforced, as it says, by opposition to many symbolically important laws.

As we all know in this House, the list of transformatory laws that they have opposed is lengthy and legendary.

Let us look, as an example, at the issue of corruption in which I find myself personally involved at the moment. [Interjections.] It is true, as I would imagine, that everybody in this House knows that I have extremely strong feelings, which I have expressed, about aspects of the arms deal procedures in the investigation. [Interjections.]

When this matter is raised - and it is a sign of the health of our democracy that it has become such a public issue - we never hear about the extraordinary way in which the Minister of Minerals and Energy has handled the recent, very serious issues relating to the SFF, nor do we ever hear analyses from the opposition of how corruption was integral to the functioning of the apartheid state. It is as though corruption arrived with democracy, rather than our democracy having been polluted by a culture of endemic corruption that was just one aspect of a corrupt and immoral order. [Applause.]

What we need, in looking at the future characterised by high sustainable growth that leads to job creation and the alleviation of poverty, as much as interventions by Government, is a continual talking up of our prospects, not in an unrealistic manner, but in a measured and informed manner. For instance, when we talk of unsatisfactory growth performance, we must also look to the progress that has been made, that between 1990 and 1994 GDP growth in this country averaged 0,2%, between 1995 and 1999 it averaged 2,3%. Not enough, but a lot better.

We must talk, for instance, of the fact that, despite international volatility, this economy has remained fairly robust in recent months and, in particular, since the new year. This is reflected in vehicle sales, electricity production and consumption, better than expected retail spending figures and, particularly, manufacturing production statistics. This showed growth of 5,7% in January on a year on year basis and quarter on quarter growth equivalent to no less than 13,9% on an annualised basis. This significant growth, being especially focused on manufactured exports, reflects the success we have had in re-orienting this economy since the advent of democracy. This is not to say that massive challenges do not exist, but it is rather to say that we need to be balanced.

What we require in this country, as we look to growing the economy and meeting the needs of the poorest in our society, is a patriotic activism, not determined or judged by party-political allegiance; not uncritical, which will be the death knell of our democracy, but just balanced, sensible and productive.

Such activism might cover the critical tasks of not only selling South Africa to the world, which is the responsibility that each one of us has, but also of selling South Africa to each other. It requires not bondage to our history, but a sensitivity to it and a determination to overcome it. This determination in turn, requires an active engagement to redress the poverty and inequality that exist around us. This is something that should bind all of us to a common purpose: what was describe in this House recently as unity in action for change.

But such a patriotic activism is particularly important for those of us who benefited most from apartheid, whether wittingly or unwittingly. It is incumbent upon us, the bearers of skills and experience that were not available to so many for so long, to use these in the service of change and progress. This is not about guilt. This is about basic human morality, and it is why I believe, as the President suggested yesterday in this House, that most South Africans living both here and abroad, want this country to succeed.

What we need to do is to look at how globalisation has moved people around the world and how we can link in to those South Africans who are not here, so that they can continue to serve the course of growth and equality in our society, because the reality is that if we are divided, be it by race, material circumstances or life opportunities, this nation and all its people will fail; for it is only together as a nation united in our determination to expunge poverty, racism and criminality from our land that we will taste the sweet fruits of liberty, of which the Minister spoke. [Applause.]

Mr H J BEKKER: Madam Speaker, it is a privilege to follow on the hon Feinstein and Gen Viljoen. The departure of Gen Constand Viljoen brings a parliamentary era to an end.

Ons in die IVP sal vir genl Viljoen mis. Die pad wat ons saamgeloop het, is ‘n merkwaardige roete met slaggate, opdraande en gelyktes. Sy vriendelikheid en bedagsaamheid sal altyd waardeer word. (Translation of Afrikaans paragraph follows.)

[We in the IFP will miss Gen Viljoen. The road that we walked together was a remarkable route with potholes, inclines and level ground. His friendliness and thoughtfulness will always be appreciated.]

Who will ever forget that late night dash to the World Trade Centre in 1994 when the IFP and the FF registered for participation in the elections, a mere 30 minutes before midnight, the final cut-off date. This action, for which some people in his own community wanted to crucify him, was ironically one of his greatest contributions to peace in this country. We in the IFP salute him. We salute him as Gen Viljoen, and we salute him as Citizen Constand. [Applause.] The IFP gives the Minister of Finance the thumbs up for the presentation and the content of the Budget. The Appropriation Bill reflects a deficit, before loans, of 2,5% of GDP, which is within the standards set by the World Bank and the International Monetary Fund. The marginal reduction in overall debt, and particularly our foreign debt, is welcome. The IFP always maintained that the proceeds from privatisation should be utilised to pay our international debt.

Improved collection of taxes and better control will result in narrowing the gap between expenditure and income, and it was therefore a disappointment that a small reduction in corporate taxes and secondary tax on companies was not announced. Similarly, middle-income earners should also have been given some of the relief which has, indeed, been given to the lower-income earners.

The medium and long-term framework, particularly in its reflection of this Budget, has finally come into its own. The detailed reflection of the various Estimates, comparing different years, has been simplified, and is user-friendly. The documentation, and the presentation as a whole, is an improvement on previous years. The general proportion and shape of the tax system is much better, as well as the collection part and the administration thereof.

The IFP is also in support of utilising the best of technology and integrated computerised systems, which have been extended to all the different departments. South Africa must be part of the globalisation aspects of the world economy. Although we are small, and maybe insignificant in comparison with the big players, we have an important role to play in Africa in this global race. Just to give an indication: It is a fact that yesterday alone on Wall Street, more than the total South African economy was written off in one single day, just to give hon members an idea of what the situation is and what we must compete against.

Similarly, the streamlining and future on-line reflection of companies and close corporations at the office of the Registrar of Companies is welcomed. Further technological and IT developments in this regard are being awaited with interest.

It is a carefully and conservatively constructed Budget which is unlikely to cause any hiccups in the markets, with the possible exception of the bond market. It is neither contractionary, nor expansionary, and it is neutral on the inflation front, which, given current Reserve Bank policy, suggests that the Minister’s 2002 inflation targets would be achievable. With the exception of its shortfalls on economic stimulation, it maintains the most essential balances, the necessary discipline, and as such, should add to public confidence.

The success or failure of South Africa will depend on the rate of economic growth. In order to create the required job opportunities we need to maintain substantial growth over several years. This, in turn, is dependent on massive investments coming from foreign, as well as internal, sources.

The IFP sees this as a national campaign and was therefore disappointed when the Minister did not allow more incentives for saving by the general public. We simply must improve on savings and encourage real fixed investment in this country. A total change in mindset is required. If local investors do not invest, how can we ever expect foreigners to invest in South Africa? Certain obstacles, fears and perceptions must be removed or addressed. The most significant obstacle which makes this country a pariah is crime and particularly violent crime. Unemployment and poverty are the other legs or obstacles that must be addressed. We accept that there is a correlation between unemployment and crime. Therefore, it would be beneficial to address both at the same time.

Senseless killings, armed assaults, sabotage and possession of illegal weapons as well as rape and violence against women and children should be severely punished. Life sentencing should indeed mean life imprisonment. Sabotage of the state and economic sabotage are the same thing. Wilful destruction of Government assets and private assets is the same thing. It should be seen as sabotage or treason. I fail to see the difference between a person wilfully starting a small fire in a railway carriage and the arsonists who set fire to the Pretoria station.

The senseless cutting off and theft of telephone and electrical cables, to melt them down, thus destroying infrastructure and inconveniencing thousands of people, should carry long sentences without the option of a fine. Discipline and respect for the law must be the building block of the African Renaissance. The HIV/Aids pandemic is having a devastating effect on our communities. The setting aside of resources and economic resources for combating and relief of this terrible disease is absolutely essential and should be encouraged. The IFP will be in full support of all these actions.

We thank the Minister for his support for the development of industrial development zones and particularly the Lebombo Spatial Development Zone. The road access and transport development will contribute to the development of our economy. We have argued that the Richards Bay and Empangeni areas should be an industrial development zone. The IFP still maintains that this area should become the gateway between Africa and the East, and the West Coast of America. Should Richards Bay become a free port, with all its spare capacity utilised, this enclave could become the Hong Kong of Africa.

In conclusion, I want to pay tribute to my predecessor in the Finance Committee and IFP spokesperson on finance, Dr Gavin Woods. Dr Gavin Woods played an important and decisive role in this portfolio committee for the past seven years. It is with humility that I venture into his shoes. His expertise will be sorely missed. However, we have appreciation for the very important task that has been assigned to him as the Chairperson of Scopa - Parliament’s watchdog on public accounts. To me it is a consolation to rely on, benefit and draw from his vast experience and knowledge. It is an honour to have Dr Gavin Woods as my alternate on the Finance Committee. [Applause.]

Mnr C M J VAN SCHALKWYK: Mevrou die Speaker, ek wil my ook graag skaar by diegene wat Genl Viljoen alles van die beste toewens met sy aftrede. Sy rol om ‘n bepaalde groep regse Afrikaners, alhoewel baie van hulle teensinnig was, deel te maak van die nuwe Suid-Afrika, sal altyd gerespekteer en erken word. Ek wens hom sterkte en alles van die beste toe. (Translation of Afrikaans paragraph follows.)

[Mr C M J VAN SCHALKWYK: Madam Speaker, I would also like to join those wishing Gen Viljoen everything of the best on his retirement. His role in making a certain grouping of right-wing Afrikaners part of the new South Africa, although many of them were reluctant, will always be respected and acknowledged. I wish him well and everything of the best.]

The debate about the national Budget is often clouded by waves of figures, swarms of statistics and volumes of economic jargon. Naturally, these are important aspects of any serious national budget. However, it is essential that we, as the leaders of our country, should never allow the technical complexity of the numbers to obscure the single most important truth - that lifeless figures and cold statistics have a very real and very immediate effect on every single South African.

If, in the course of this debate, we truly desire to make the most positive contribution possible, we would do well to remember those whose future and lives our discussions actually represent - from the small child in the Eastern Cape who goes to sleep hungry every night to the proud matriculant in Gauteng frustrated by nine months of fruitlessly searching for a job, and to the old woman in KwaZulu-Natal who stands eight hours in the queue for a tiny pension that supports 10 family members. These are the real people behind the faceless figures.

It is not possible for us to address these challenges by simply shifting zeroes from one column to another. No matter how competent our bookkeeping may be, the key to our economic success lies in the simple priority - economic growth. If we are ever to seriously address our massive national challenges, we need economic growth in the region of 6% every year.

Despite some party-political differences that we may have, I would like to say that Minister Trevor Manuel has earned himself substantial respect across party lines for the way in which he has handled this portfolio. It must be a source of endless frustration to Mr Manuel, Maria Ramos, Tito Mboweni, and the other voices of reason that some members of the Cabinet undermine all the good work that they are doing to create positive perceptions.

The overriding priority to create economic growth in South Africa must be attracting investments, and then retaining them. Yet, levels of direct foreign investment have plummeted by 43% in 2000 alone, according to a recent survey by Business Map, and domestic investors appear ever more reluctant about further expansion of their operations. There is obviously something badly wrong.

The opposition and the business community are sometimes criticised because we point out, I believe rightly so, problems in our country. The ANC does not need to launch an investigation into who is talking the country down. They are actually paying huge salaries to Ministers like Mr Tshwete, Mr Maduna and one or two others who act like bulls in the china shop of international investor confidence.

The single most important problem that South Africa faces in trying to attract and retain investments is the problem of credibility - credibility on crime, HIV/Aids, the labour market and our regional policy. In addressing these issues, we are not talking the country down; we are levelling with the country and saying, let us deal with what is obviously a credibility problem.

Perceptions about crime in South Africa are perhaps most often mentioned when investors, both foreign and domestic, describe what they consider to be the biggest obstacles to investments. Horst Jaeckel, the chief spokesperson of the Association of German-speaking Companies in Southern Africa, has said that:

Crime is South Africa’s biggest problem. We are fully aware that the Government is trying to address this issue, but the results are not yet sufficient to regain international investor confidence.

A recent survey by the World Bank and the Greater Johannesburg Metropolitan Council found that 94% of large manufacturers in Johannesburg rank crime and violence as the number one constraint to business growth in the city. The same survey found that companies spend more than R2 500 per employee on crime prevention devices and security guards. This is indicative of the increasingly costly effect of crime on doing business in our country. When even the elected representatives of the people of South Africa are denied access to the facts about crime statistics, and are forced to vote on budgets without knowledge about areas of greatest need, the question arises: where is the credibility?

With regard to HIV/Aids, UNAIDS puts the number of HIV-positive South Africans at about 4,2 million people - nearly a tenth of the population. In the words of Edwin Cameron, then Acting Judge of the Constitutional Court, to the 13th International Aids Conference, held last year here in South Africa, Government has mismanaged the HIV epidemic at almost every turn. The standing ovation his speech received from the largely international audience is indicative of the perceptions about the Government’s inadequate commitment to combating this disease.

Mr Mbeki’s flirtation with the HIV/Aids dissidents and the ludicrous and hysterical pre-election allegations of ANC officials that the dispensing by our Western Cape government of life-saving anti-retrovirals could be equated to biological warfare against blacks in South Africa, all combine to beg the question: If Government is truly committed to fighting HIV/Aids, then where is the credibility? In today’s Financial Mail, as I pointed out, one of the Aids panel members wrote that ``HIV/Aids is a harmless virus’’.

Despite public assurances by both President Mbeki and the Minister of Labour in February 2000 that labour legislation would be urgently reviewed and amended, these amendments have yet to be brought to this Parliament. When the financial and political leadership of Government make repeated appeals to the international community for increased capital investment on the one hand and, on the other hand, urgent changes to labour legislation are delayed and Government partners, like the SA Communist Party Secretary General Mr Nzimande, call for ``the destruction of capitalist barbarism and the creation of a socialist society’’ - I think he was addressing the Minister of Finance - the question again arises: Where is the credibility? [Interjections.]

On regional political relations, few actions have done greater damage to the international perceptions of South Africa as an investment destination than the failure by Mr Mbeki to repudiate attacks by Mr Mugabe on the institutions and practice of democracy in Zimbabwe. [Interjections.] Mr Tito Mboweni said recently, and I quote:

Zimbabwe crops up wherever I go. The Limpopoÿ …

That is the river which forms South Africa’s northern border with Zimbabwe

… might as well be a river between two South African provinces.

President Mbeki has continued to practice appeasement in the form of silent diplomacy without being able to produce any positive results. When silent diplomacy is globally regarded as quiet approval, the question is: Where is the credibility?

In conclusion, in May last year the findings of a study by economist Stephen Gelb, commissioned by the President’s Office, showed that of the more than 1 400 large and small businesses surveyed, between 48% and 65% rated this Government’s understanding of their problems as bad or very bad, and most had little respect for the Government’s effort to support investment. The message for this Government is clear. They are out of touch with the people who should be creating jobs in our country.

Perceptions can only be improved by credible action. If Government is to attract and retain higher levels of investment and, by implication, stimulate the levels of growth required to reduce poverty and unemployment, then it must first answer the question: Where is the credibility? [Applause.]

Mr E SALOOJEE: Madam Speaker, when the ANC Government came into power in 1994, we inherited an economy with very serious structural challenges. It was an economy headed for utter failure. Through fiscal discipline and efficient management of the economy our Government has turned this around. [Interjections.] But if one listens to what people on the other side are saying, it would appear as only ``mismanagement’’.

We have improved the collection of revenue by transforming and streamlining the work of the SA Revenue Service this year, under the leadership of Mr Pravin Gordhan. We have made sure that we cut Government spending so as to bring down the Budget deficit to 2,4% of GDP.

We have encouraged systems for good and efficient management of public funds and they have began to show results. This year 58% of the noninterest budget goes to social spending, comprising allocations to health, education and social development. For social development alone this means a national allocation of just under R191 million.

The allocation to programmes that fight poverty this year stands at R1,5 billion, with the focus on supporting local economic development. Still, we live with the reality that millions of our people are poor, with 65% of the more that 20 million poor people in South Africa being African people. They are women and they live in the rural areas.

Despite all the Government’s efforts, the unemployment rate is at 37% and many people are unable to escape poverty because of a lack of opportunities to develop their skills. We are still living with the legacy of the past. We are now focusing on the creation of jobs, but at the same time we must create the vision for those people who are not being captured in the employment opportunities and only then, we believe, will the economy start delivering.

We are talking about the elderly, persons with disabilities, children and families in need. Currently our monthly social security payments reach more than 3 million individuals. Government is still stepping up its efforts to ensure that the payment of grants is made more efficient. We also know that one grant does not affect only the recipient. It is estimated that each payment affects up to eight people. The direct impact of such transfers on poverty is obvious.

When the transition to democracy occurred, we were faced with a social security system that was deeply flawed. Its provision was hugely unequal. Because of a lack of funds we had to try and extend the benefits it offered to all our people. So the democratic Government introduced equity with respect to most of the grants. We introduced the child support grants as a means to provide assistance to target 3 million of our poorest children.

While much progress has been made, approximately 1 million children are now receiving this grant. We were in fact only making adjustments to an unsatisfactory system. This is going to change. The economy is now on an upward growth path. With our increasing integration in the global world, we are for the first time in our history able not only to look at a more equitable social security dispensation, but to fundamentally redesign the system so that it should take care of all those people in our society who are vulnerable because of poverty and unemployment.

To this end, the Government appointed a committee of inquiry to study a comprehensive social security system. Its recommendations are expected towards July this year. From the interactions we have had with the committee, it is clear that it is looking holistically at integrating measures of social assistance, social insurance and social protection.

We are encouraged that the crisis caused by HIV/Aids has been singled out for special attention. As a pandemic, it is already aggravating the poverty situation in our country. It is estimated that there will be 2 million children orphaned by HIV/Aids by the year 2010. A community’s ability to cope with caring for Aids orphans is severely constrained by the fact that a large number of the working age adults in that community are likely to have been infected themselves and poor. In this instance poverty is directly linked to the crucial impact that the pandemic has and we seriously have to consider whether communities will be able to assume care- giving roles without assistance from the state.

While we do not want to pre-empt the outcome of the ministerial committee work, it seems possible that it would make proposals about broadening the safety net provided by the social security system. It is imperative that we start looking at the budgetary implications of a comprehensive social security system over the medium term. The results of the deliberation will also have implications for other departments providing social assistance in one form or another. We need to ensure collectively that these issues are taken into consideration in the medium-term social spending.

In conclusion, I want to concur with both the President and Minister of Finance and say no matter how many resources we unlock for the development of our people, it will have no real impact if those resources are not well targeted and efficiently spent. There has been criticism that it has taken the Government a long time to come up with strategies for development. At the same time those critics sent out a clamour about the underspending of funds. We as the ANC have a singular commitment through strategic planning and rational budgetary allocation to put into place those mechanisms that will ensure that our people are reached and that the quality of their lives are enriched.

There can be no doubt that we faced huge challenges when we came to government. Many of those challenges still exist. But it would be irresponsible of anyone to deny that great progress has been made towards building the South Africa that we all want. I believe that we are on the right course. Let us launch the final fight against poverty and, in doing so, give material expression to our commitment to a better life for all.

Dr G W KOORNHOF: Mev die Speaker, agb lede, laat my toe om namens die UDM en ons President, genl Holomisa, baie sterkte toe te wens aan genl Viljoen, wat vandag sy uittrede uit die politiek aangekondig het, en ook die rol te erken wat hy sedert 1994 gespeel het. Ons hoop hy lê nou homself toe op sy groot liefde in sy lewe, naamlik sy boerdery, en dat hy ook daar ‘n groot sukses sal maak. Hierdie Raad groet ‘n kleurryke en ‘n eerlike lid van die Raad. Generaal, ons salueer u. Sterkte! (Translation of Afrikaans paragraph follows.)

[Dr G W KOORNHOF: Madam Speaker, hon members, allow me, on behalf of the UDM and our President, Gen Holomisa, to wish Gen Viljoen, who today announced his retirement from politics, everything of the best, and also to acknowledge the role he has played since 1994. We hope he will now enjoy concentrating on the great love of his life, namely farming, and that he will also be extremely successful in that. This House bids a colourful and honest member of the House farewell. General, we salute you. Everything of the best!] One of the leading newspapers in town, the Cape Times, recently published that Trevor Manuel’s middle name is Consistency. He deserves it, because for five years now, he has shown his Ministry’s firm and fair hand on the finances of this nation. Not only has he brought greater transparency to the Budget process, but he is also responsible for providing a basis for stability in pursuit of a real economic growth rate of greater than 3% per annum. If the thought of retiring as the Minister of Finance ever crossed his mind, he must know that his job is not complete yet.

A year ago in this debate on the Appropriation Bill for 2000-01, I mentioned three issues that needed urgent attention to make us an employed nation. These steps were fast-tracking the restructuring of the state assets, increasing assistance to small businesses and imaginative infrastructure development. I am glad that all three of these aspects have received serious attention in this year’s Budget, thereby providing a foundation for further expansion over the medium term.

It has been said that the Budget is a government’s most powerful economic instrument. The question is: What impact will this instrument have on the poor? A leading economist in South Africa, Mr Nic Barnard, recently stated that while we should be encouraged by the accelerated rise in overall budget spinning, it must be emphasised that it is one thing to budget for expanded infrastructure and improved service delivery and another to actually deliver.

This House and some of its committees, especially Scopa, last year received many reports of underspending and underdelivery in all three spheres of the Government. Unless we work towards a zero gap between plans and implementation, the poor will benefit very little from good intention budgets. In its submission to the finance committee on Budget 2001, Idasa evaluated three microeconomic reforms that have been initiated to reduce poverty through growth. These reforms are skills development, infrastructure investment and the employment subsidy.

These reforms are being hampered by several deficiencies and problems. Regarding skills development, it has been reported that R430 million of moneys collected under the skills development levy went unspent in 2000-01, pointing to slow implementation. Another important one, the Umsobomvu Fund announced in 1998 and intended to target unemployed youth, with assets amounting to nearly R1 billion, all of a sudden went quiet.

Infrastructure investment received a boost with the announcement in the Budget that R7,8 billion has been allocated to national and provincial government departments over the medium term. Idasa argues that it is unlikely that these funds will be spend promptly enough to reduce poverty in the current MTEF period.

The reasons are, firstly, due to incomplete planning. For example, many of the divisions of the funds between provinces still has to be decided, meaning that allocations have not been determined as yet. Secondly, serious underspending has been reported by departments for the period up to December 2000. National departments had spent only 51% and provincial departments only 56% of their capital allocations by December 2000. Of greater concern is the fact that the largest allocations are going to departments which have not been able to spend their budgets.

At national level the Departments of Safety and Security, Correctional Services and Justice had only spent 34% of their 2000 capital spending allocation by the end of the year 2000. At provincial level the Departments of Education and Health had only spent 40% and 35% respectively of their 2000 capital spending by the end of that year. Regarding the announced employment subsidy, namely to spend R600m for a wage tax credit, it is difficult to evaluate this allocation as details on this plan will only be available in October.

The problems with the above-mentioned microeconomic reforms manifest themselves in incomplete budget allocations and lack of implementation capacity. These problems result in the fact that no immediate benefits will go to the poor, especially the unemployed. The likelihood of employment creation substantially reducing poverty in the short to medium term is therefore quite slim.

I now want to address an important aspect that affects poor people in Third World countries in general, but also poor people in South Africa. The poor people of developing countries or nations, the overwhelming majority of them, have things, but they lack the process to represent their property and create capital. They have houses, but not titles; they have crops, but not deeds; they have businesses, but not statutes of incorporation. This is what Hernando de Soto calls the mystery of capital.

These people work in the extralegal sector, on the streets, from their homes and in unregistered shops, offices and factories. They are real life examples of economic life in the undercapitalised sector of our society. They possess the so-called ``dead capital’’. Their resources are commercially and financially invisible.

De Soto estimates that the total value of property held, but not legally owned, by the poor in the Third World amounts to $9,3 trillion, that is R73,3 trillion. It is more than twenty times the total foreign direct investment into poor countries during the period 1989 to 1999.

The true heroes in our society are the small entrepreneurs who have overcome every conceivable obstacle to create a small business, and the poor family that has painstakingly saved to construct a modest house. They are not the problem of poverty, they are the solution.

Budget 2001 has been hailed as a pro-poor Budget. The problem is that it does not go far enough to put the poor on the top of the list of the Government’s programme for growth. Official statistics do not contain the information we need. We need to put ourselves in the shoes of the poor and walk their streets.

To assist the poor we need to bring the extralegal entrepreneurs into the legal system. We need to modify company and property laws to adapt to the needs of entrepreneurs accustomed to extralegal rules. The same applies to extralegal property owners.

Formalising the hidden assets of the poor can become a winning strategy, unlocking billions of rands of dead capital owned by the majority of our population. They are the people who live mostly in urban and rural informal houses or dwellings. If we succeed in creating such a strategy of transforming dead capital, we will move away from jobless and high-skilled growth to employment-creating growth, unlocking the potential of poor, unskilled workers.

In conclusion, I want to address the issue of higher, sustainable real economic growth, addressed in many submissions to the Finance committee, and also contained in our report to Parliament on the Appropriation Bill. There seems to be growing consensus that South Africa is indeed capable of achieving real economic growth rates in excess of 4% per annum. For this to realise, we need to increase investor confidence, both domestic and international. We need to create and develop decisive economic leadership and we need to establish effective co-operation and trust between Government, business, labour and civil society.

We also need to see the bigger economic picture of how we can contribute to real and sustainable economic growth in South Africa. We need a ten-year plan to transform deficits in our society into real gains. Such a plan should primarily focus on how we can achieve higher economic growth rates and how we can link it to poverty alleviation. If we succeed, the first decade of the new millennium will become known as the golden years of our economy. Let us collectively commit ourselves to such a challenge. The UDM supports the Appropriation Bill before us. [Applause.]

Mr M J G MZONDEKI: Madam Speaker, hon members, the hon Minister when he tabled the Budget before us in this House had this to say about the Budget: It is the story of an irrevocable and powerful transformation. To restore pride and dignity. To lift the crushing weight of poverty and disempowerment.

It tells the story of a young and proud democracy hard at work to improve the lives of all its people.

Indeed, this Budget has to improve the lives of all, including the lives of the young, the children, women, disabled people and those in the rural areas.

I want us to go back to the year 2000 and look at the Paralympics team who made us all feel very proud when they brought back the medals into this country. We want to wish them an even better future. I want us to pause a little bit and look at the composition of that team. Nafcosa tells us that 28% of the members of that team were black. Surely that is not a good reflection of the demographics of this country. Something is wrong and it is not very difficult for us to understand why it is so. This is caused by the unbalanced location of the facilities and the allocation of the resources.

The ANC has got to rectify the situation. The world class sports facilities are found in the suburbs of Johannesburg, Cape Town and Welkom. One does not find them in Soweto, Khayelitsha, Mitchells Plain or Thabong. If one does find a few, they are barely equipped and they are ill-maintained. This results in the majority of the people being denied an opportunity to participate equally in sports and recreation to stay healthy.

Ntombizanele Situ, the javelin world champion in the Paralympics is today a champion because she happened to be in a special school equipped with some of the necessary facilities. It is not correct that only those who are privileged like Zanele, who happened to be in a special school, or those who come from the suburbs can be the champions. I am sure that we would like to see champions coming from Khayelitsha, the villages of Qunu, from Jozana and from Meloding.

The situation of Zanele is not only true for disabled persons, but it affects many other young people and children who come from the villages and townships. They also need to be given an equal opportunity to find their talent. We will not be able to encourage them off the streets if there are no facilities close to them, and this Budget has to correct that.

The Building for Sport and Recreation Programme in the Department of Sports and Recreation aims to construct a sport and recreation facility while, at the same time, creating jobs through the programme. I believe that the target will be the rural and the disadvantaged areas.

The SA Sports Commission, through programmes such as Active Youth, Play Sport, and others, aims to promote wellness through active participation in dipapadi [sport] and involves kids in physical play at schools. It aims to educate parents on positive active play. Through the talent identification programme, it aims to establish an infrastructure that would identify and nurture sporting talent, and ensure that our national teams are more representative.

Recently, the commission launched the indigenous games in the Free State, which was a great success. I have no doubt that some of us here who have never been champions are going to be champions of Morabaraba, Kgadi and Tleki. For those who do not know these indigenous games, the Free State would like to invite them to visit that province, but this time as tourists and not as a parliamentary committee. [Laughter.]

I want to emphasise the important role that the Department of Sport and Recreation can play in integrating disabled people into mainstream society, and the important role that sport and recreation can play in boosting the image and confidence of all of us.

I am sure that many hon members would like to see Zanele, because when she became a champion, her image changed. It is unfortunate that she, and other champions such as Penny Heyns, are not even marketed as role models. We hardly see her on TV. Perhaps this is a challenge to the SABC and the other media.

The existing facilities need to be adapted to allow all of us to use them. Clubs and associations need to open up membership and allow diverse sporting codes. Schools that are still stuck playing the traditional sports such as rugby need to change when the profile of the learners change and accommodate other sports.

This Budget, I believe, is going to address the situation so that all of us can taste the sweet fruit of liberty. [Applause.]

Rev K R J MESHOE: Madam Speaker, hon President, hon members, the ACDP expresses its best wishes towards Gen Viljoen on the announcement of his retirement from active politics. We acknowledge the positive contribution he has made in promoting a peaceful political transition, and we thank him for being a man of his word.

Ons sal die generaal baie mis in hierdie Huis, en ons wens hom, sy huisgesin en die boerdery God se rykste seën toe. Ons wens hom alle sterkte toe op die pad vorentoe. (Translation of Afrikaans paragraph follows.)

[We shall really miss the general in this House and we pray that he, his family and the farm may receive God’s richest blessings. We wish him well on the road ahead.]

There are many areas of need in our nation that are begging for more resources. Our people are asking for more in order to improve their lives. Every government department wishes to have their programmes and budget given priority by the Minister of Finance.

I want to plead for more resources to be allocated to Aids prevention instead of just the treatment of those who are already infected with the Aids virus. Much has been said about making the treatment of Aids more accessible and affordable. Yesterday, the President responded to a question by the Leader of the Opposition about whether he would consider proclaiming HIV/Aids a national emergency, and he correctly said that a state of emergency was not necessary. Not enough is being said about preventing people from being infected by the Aids virus. That is why I want to concentrate on a proven solution that would drastically reduce the number of new infections that are estimated at being about 2 000 per day.

According to a study recently published by ING Barings, some 8 million South Africans will be HIV-positive by the year 2005. About 250 000 our people will die from Aids this year. The number of deaths will increase by 180% over the next five years, with 700 000 Aids-related deaths estimated for the year 2005. It seems that the social and the economic repercussions of the pandemic will be even worse than already anticipated.

According to an economic impact study of Aids in South Africa, by the year 2006 nearly 17% of the entire population will have HIV/Aids. This is very serious. Drastic steps have to be taken to ensure that we do not have as many people with the HI-virus as projected.

The population growth rate currently stands at 1,9%. According to ING Barings’ April 2000 report the growth rate would have been around 2,3% in the absence of Aids. Their projections indicate that the growth rate will drop to below 1% by 2004 and reach 0% percent by 2011.

These projections demand a bold, drastic and well defined response by Government. This is a war that can and must be won. Decisions that may not necessarily be popular and politically correct have to be taken to save our nation.

The nation of Uganda, which is a classic example, once faced the national Aids crisis that South Africa is facing today. Their government effected the most dramatic reduction in Aids with the incidence of disease falling from 30% of the population to about 9%. This was a major achievement. If they could do it, then we can also do it, provided there is a sense of urgency in our Government and a will to apply the workable and reliable solutions that were applied by the people of Uganda.

An obsession with a desire to win the war over aids in Uganda caused that government to start what they called the ABC campaign, with a major emphasis on the letter ``A’’, which stands for abstinence from premarital sex. Huge billboards were erected throughout the country. Millions of educational pamphlets were distributed nationwide. Both radio and television were used to spread the message of abstinence from premarital sex, especially among young people.

Although our Government has also embarked on a similar campaign with the ABC message, the major difference between the Uganda strategy and the South African strategy is in emphasis. While they spent more money on billboards with a message of abstinence, our Government does not have such billboards, but just spends money on condoms and what they call advocating safe sex. I have heard some politicians, even over the radio, refer to the ``A’’ in this ABC campaign as abstinence from unsafe sex. This is misleading the public. Premarital sex and extramarital sex are always unsafe sex, regardless of how many condoms one uses.

Although Uganda has less money to spend than South Africa, they have achieved much more in their fight against Aids. This was done by spreading the simple message of responsible living and the fact that Aids kills. [Interjections.] Unlike South Africa and the USA they have not handed condoms out freely to children who do not have enough facts to make mature decisions.

As a concerned South African, I am appealing to our Government to spend more money on pamphlets, booklets, brochures and bill boards promoting the message of abstinence from premarital sex. Let this information be freely available in every school. Sexual activity amongst school children must be vigorously discouraged, instead of being promoted.

The impact of the HIV/Aids pandemic on the economy will lead to substantial declines in productivity, skills and available expertise in South Africa. The impact on the household begins as soon as a member of that household starts to suffer from HIV-related illnesses. The impact can be seen in various areas.

We need to save our nation. Government must change strategy and move into higher gear. Action and drastic action is needed before it is too late. More money must be spent on promoting abstinence from premarital sex in our communities, schools and institutions. National television must also be used to spread this proven solution. I want to tell the hon the Minister of Finance that this is one area that is worth spending more money on.

Let us save our children from this scourge and thus enable them or give them the opportunity to develop into a skilled and professional workforce that will improve our economic prospects and bring prosperity to our beautiful country of South Africa. The ACDP will support the Appropriation Bill. [Applause.]

Mnr I S MFUNDISI: Mev die Speaker, ek wil genl Viljoen, namens die UCDP, sterkte toewens met sy aftrede. Hy het hom waardig en ywerig teenoor almal gedra, en ‘n mens hoop dat sy bydrae tot die verbetering van mense- en rasseverhoudinge in ons vaderland nooit vergeet sal word nie. Ons bedank hom vir sy goedgesindheid. [Applous.] (Translation of Afrikaans paragraph follows.)

[Mr I S MFUNDISI: Madam Speaker, on behalf of the UCDP I want to wish Gen Viljoen everything of the best on his retirement. He behaved in a dignified and diligent manner towards everyone, and one hopes that his contribution to the improvement of human and race relations in our fatherland will never be forgotten. We thank him for his goodwill. [Applause.]]

A scrutiny of the Appropriation Bill brings to light that there is truth in the saying that the legitimate object of Government is to do for a community of people whatever they need to have done, but cannot do at all in their separate and individual capacity.

Government strives to ensure that the nation is educated, lives in safety, has water and enjoys good health. Each individual member of society is entitled to these and others, but may not access them on their own, hence the need for the provision of the services by Government.

The R98,8 billion from the National Treasury Budget which has been allocated to the Minister for the needs of the nation, is something that is laudable. We take note that, amongst the first 10 votes that have been allocated the highest appropriations, is Safety and Security. This will surely see to it that levels of crime are brought down and, hopefully, the police service and their salaries will improve. We hope that, thereafter, their morale will also be very high.

The appropriation lays emphasis on infrastructure investment which will translate into job creation. Fifty eight percent of the Budget is allocated to social services, namely education, health and welfare. This allocation, however, shows the extent to which Government is people-centred. As for this commitment, it can be implied that there is hope for economic growth in the long run, as the people so prepared will be the driving force of the economy.

It is gratifying that the Government recognises that progress in the quality of schooling, promotion of early learning opportunities and the deepening of further education and higher education sectors are important investments in future prosperity. It is also good that skills development will receive a further boost this year, and we hope that the money so accrued will be put to proper use.

We look forward to more young people benefiting from the Umsobomvu Fund, in that employment opportunities will be created for them. This venture should not be allowed to recede like a mirage in the desert, while other young people are left desolate. The R916 million of the fund that has been invested should help see to the creation of jobs. This should be very urgently done.

There is great concern in the area of employment. According to the Reserve Bank quarterly bulletin released yesterday, formal employment in the nonagricultural private sector dropped from 9,2% in gold mining to 0,3% in the services sector in the nine months of last year. Much has to be done in this regard if we hope to have a very fine way of living.

May I appeal to delegates that go abroad to represent South Africa to ensure that their plans are compact and intact, to avoid the situation which is currently obtaining in Nigeria. Such inept arrangements reflect on the country and will, in the long term, affect our economic success.

The national Treasury has done its bit, the cake has been split accordingly, and it is for each of the departments to look after its share properly and spend it prudently. The UCDP supports the Bill.

Mr D A A OLIFANT: Chairperson, the President, in his state-of-the-nation address, opened his speech with the following remarks, and I quote: ``Gradually, step by step, our country proceeds further away from its painful past.’’ Nowhere can one experience this feeling but in local government.

Local government, after the local government elections of 5 December, has undergone significant changes within the South African political system. These local government elections marked the completion of the process of rationalising the number of apartheid municipalities from 843, to the current, nonracial, democratic municipalities of 284.

Its objectives are to build and strengthen nationhood, deepen democracy and assist with the economic advancement and social development of our people, particularly the poor and disadvantaged. The new system of local government will also significantly advance our national, democratic transition, more so than in the provincial and national government. We have also now entered our final phase of transformation.

Obviously, the new system will not be fully implemented immediately, but rather in phases. The new system defines local government as a sphere of government, with its constitutionally enshrined powers and functions not completely independent, but interrelated with provincial and national governments in one overall system of co-operative governance.

Local government is not just a mechanism for the delivery of services, but it is also of paramount importance for the economic and social development of our people. The key factor of this development role is the requirement in the new system that all municipalities need to adopt the integrated development plans, known as the IDPs. These IDPs must clearly set out divisions, needs, priorities, goals and strategic plans to develop municipalities as tools for sound delivery. An IDP is not only a plan, it is a strategic instrument, a management tool, and a method of running a municipality. In terms of the law, community participation is an essential element in both the content and the drafting of the IDP process.

In so doing, the Act is clear that the residents have the right to contribute to the municipality’s decision-making process. They also have the right to do the following: preparation, implementation and the review of IDPs; establishment, implementation and review of a municipality’s performance management system; monitoring and review of that performance; preparation of a municipality’s budget; decision-making about the provision of the different municipal services; and also monitoring and reviewing the quality and effect of that particular service.

The 5 December elections were the first truly nonracial and democratic local government elections, as they have done away with the racial quotas of previous elections. With the new demarcation of municipal boundaries on the basis of rational criteria, the old racially determined apartheid boundaries have now finally been done away with. With the integration of racially separated areas and the merger of urban and some rural areas, these municipalities represent a further deracialisation of our South African society.

In terms of the Act, municipal councils must promote gender equity in the exercise of the municipality’s executive and legislative authority. In the same vein the needs of the disabled must be catered for on an equal basis. New powerful and democratic district municipalities must ensure that development, growth and delivery takes place. These councils will be crucial to the advancement of the rural integrated development strategy.

The Minister of Finance has made substantial financial provisions to ensure the smooth implementation of our new system of local government. We appreciate the additional allocations for both the urban renewal and rural development strategies over the next three years. Furthermore, we greatly appreciate the commitment made by the Minister of Finance in his speech:

As Team Finance, we stand ready to work with local government to manage this complex and challenging transition.

There are still many challenges which we have to face, but most urgent and important are to produce councillors with a more developed sense of leadership, civic commitment, and who are well-equipped and empowered to face these challenges.

Immediately after the President has launched the ANC’s local government manifesto in the small rural town of Beaufort West last year, that council implemented free basic services for that community. We want to congratulate them, and tell them that we are proud of them. [Applause.] That happened even before the local government elections. Well done, Beaufort West!

On the other hand, the DA’s manifesto also claims to provide free basic services. Yet, they went ahead and cut water and electricity in poor and disadvantaged places like Mitchells Plain, Macassar, Manenberg and Atlantis. [Interjections.]

The DA claims to be for all people and yet they are about to establish subcouncils within the unicity of Cape Town, which are totally racially biased. The DA made a deliberate choice to establish subcouncils to ensure that very little community integration takes place on a nonracial basis and thus ensuring very slow growth in our disadvantaged areas. [Interjections.] Those members must listen and they will learn.

Unlike the DA, we, as the ANC, have been consistent with our policies and objectives for an integrated South Africa. This was demonstrated by the ANC which contested all the wards in the country. This also resulted in our winning them all, including the metros. [Interjections.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon members, I will not allow running commentaries. You may make interjections, but they cannot be running commentaries. [Interjections.]

Mr D A A OLIFANT: Chairperson, they have little or nothing to say. That is why they act like that.

It is clear to us, as we rapidly move away from our terrible and painful past, that the DA is still trying at all costs to maintain the status quo. This, again, was demonstrated the other day. Was it not a DA strategist who told a foreign journalist that their strategy during the local government elections in the Western Cape was to scare the hell out of white people to get them to the polls? Was it not so?

We wish to congratulate the Minister on an excellent job done with the new Budget. We support the First Reading of this Appropriation Bill. [Applause.]

Mr C W EGLIN: Mr Chairman, as a rifle-carrying corporal in the war which ended when the general was a schoolboy, it is an honour for me to salute him on behalf of the DP. We want to thank him for his contribution which he made to the debates in Parliament and for his contribution to the negotiations on our new Constitution. However, more than this, we want to thank him for the way in which he has conducted himself.

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! I wonder if the volume is sufficient for hon members to hear the hon member who is at the podium. I would like to request that the volume be increased. Order! Hon member, you can resume your speech now.

Mr C W EGLIN: Mr Chairman, start the clock from zero again. I am saying to the general that his modesty, thoughtfulness, genuineness and sensitivity towards other people have endeared him to all the members of this House.

Generaal, mag dit goed gaan met u en u gade in die jare wat voorlê. [General, may all go well with you and your wife in the years ahead.]

Our country’s foreign policy has an important bearing on the economic growth rate which we have achieved in the past and which we will achieve in the future. Factors like foreign trade, foreign tourism and foreign direct investment can make the difference between our economy trundling along at a 3% growth rate, with us barely holding our heads above water, or advancing to a 6% growth rate where we can start rolling back poverty, reducing unemployment and delivering better services for all our people.

Here in the Southern African region, where our foreign policy should be at its most focused, the Government’s foreign policy - viewed from an economic point of view - has simply failed to deliver. Indeed, here in the region with so much potential and untapped natural resources, economic development is in jeopardy. Foreign tourism, trade and investment are being undercut by a never-ending civil war in Angola. It is being undermined by the war and political instability in Congo. It is being further damaged by presidentially condoned violations of the rule of law in Zimbabwe.

The harsh reality is that in this region, where we are about to establish a free trade area and move towards economic integration, we have not succeeded in establishing the political fundamentals which are essential to economic growth. These political fundamentals are peace, stability, democracy, the rule of law, human rights and good governance. By failing to do this, we are not only denying the region the benefits of internally generated growth, but we are making it impossible for the countries of the region to achieve their maximum add-on benefit of foreign trade, tourism and direct investment.

Let us all be aware of the fact that the more our economy is integrated, the more we stand to gain. But equally, the more we are integrated, the more we will suffer economically by violations of the political fundamentals in any one of the countries of this region.

Zimbabwe is a case in point. There can be no doubt that the events in Zimbabwe have damaged the economy of the region. There can be no doubt that they have tarnished the image of the countries of this region in the eyes of foreign investors. The Governor of the Reserve Bank says they have. The members of the President’s Investment Advisory Council say they have. And the President himself has said certain events impact negatively on South Africa.

Yet, to date the policy adopted by the South African Government on the Zimbabwean situation has failed to produce positive results. Yesterday the President announced that a ministerial delegation will be going to Zimbabwe. I have no doubt that it will find that there is nothing wrong with the fundamentals of the Zimbabwean economy that cannot be put right within the framework of the law. But it will find that the once vigorous economy has almost been brought to its knees by the reckless political actions of that country’s President.

What is distressing is that, in spite of the Government’s communication facilities, the Government has failed to spell out, in a clear and unambiguous manner, where it stands on key issues holding centre stage in Zimbabwe. Ironically, recently it was not the Government, but the leaders of our courts, supported by their judicial colleagues, who spelled out in unambiguous terms their commitment to the rule of law and the independence of the judiciary. South Africans have reason to be proud of their judges for speaking up. By contrast, the Minister for Justice and Constitutional Development has reason to hang his head in shame!

If the South African Government wants to reassure foreign investors, tourists and traders that, in spite of what is going on in Zimbabwe, South Africa remains a country worth doing business with, it must show, beyond all doubt, that there is a very clear distinction between Mugabe’s Zimbabwe and Mbeki’s South Africa.

The Southern African region remains one of great potential. Its economy has been bruised and damaged, both by its past history and by current events. South Africa has a responsibility to try to ensure that the potential of this region is realised. It has to be proactive in seeing that the political fundamentals which are essential to economic confidence are put in place and kept in place. [Time expired.] [Applause.]

Mr N J GOGOTYA: Mr Chairperson, on a point of order: I would like to raise a point of order on the speech that has just been delivered by the hon Colin Eglin. In his deliberation he said that the President condoned the breakdown of the rule of law in Zimbabwe. To condone is an act of acquiescence. Condoning is a deliberate act of endorsing an action or behaviour by the particular person, and I do not think the President can do that. I would like you to make a ruling on that, Mr Chairperson.

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon member, I think it would be appropriate for me to look at the Hansard, to see if what you are saying was in the context of that or in a different, broader context. If there is any point of order that needs to be taken up, I will then rule accordingly. But first, let me look at the Hansard.

Mrs S F BALOYI: Mr Chairperson, hon President, hon Minister and hon members, there can be no sustainable economic growth without paying attention to developmental issues. Growth and development are deeply interconnected.

We do not view spending on public health as a subtraction from the economy, but as a contribution to it. This Government has taken important steps to ensure that there is a systematic approach to the adoption of public health interventions to produce a coherent national health service in this country. The promotion of integrated strategies amongst Government departments is especially important, given the emphasis on prevention and improved quality of life.

Allow me to commend the Government for the structural transformation it has achieved in the public health system. In Mpumalanga and in other provinces hundreds of clinics have been built and upgraded. Facilities now exist where they have never existed before.

This has benefited especially those who, in the past, had to cross rivers to reach a clinic. Now clinics are closer. I can quote from my province a place like Driefontein, where they now have a very big health centre. To the mothers whose babies used to die in their arms because there was no service, this is delivery. This is what the ANC promised.

There has been an increase in the allocation this year to the hospital construction and rehabilitation programmes. This shows an improvement in making resources available to fast-track the elimination of backlogs. This is in fact redressing the decades-long impact of apartheid planning in our hospitals. There are new facilities, such as the Inkosi Albert Luthuli Hospital replacing the King Edward VIII Hospital in Durban. The new Umtata Nelson Mandela Hospital in the Eastern Cape is nearing completion as well. This will provide efficient quality care and also assist in the academic training of our health personnel.

It needs to be mentioned that improvements that have been made to hospital upgrading and rehabilitation are resulting in the improvement of the quality of delivery of care and the efficient functioning of hospitals and clinics. To prevent a deterioration of facilities, funds have been allocated for the maintenance of buildings, equipment and so on. This, however, is a process. Currently interprovincial and provincial inequities remain. Tighter co-ordination between provincial and national departments of health is necessary to reduce these gaps.

We welcome the Government’s approach to targeting and co-ordinating interventions in rural areas in pursuing the integrated approach. The advantages are of major benefit for the improvement of the quality of life, especially when guided by health indicators. For example, where roads, water and clinics are part of the planning project, and co-ordination exists, our people experience a value-for-money product that can be optimally used.

The rising HIV/Aids epidemic makes this issue a top priority for the Government. The Government has introduced an HIV/Aids and STD strategic plan that creates mechanisms for an integrated response, with other Government departments, NGOs and CBOs being responsible for the delivery in certain areas. The increase in the allocation of funds for this year and the coming year indicates the commitment of our Government to dealing with this epidemic. By allocating funds across line departments, the Government is showing a commitment to the principle that Aids is not only a health matter, but cuts across all sectors and spheres of society.

The Medical Research Council of South Africa receives special funding for research purposes, and we are encouraged by the MRC’s announcement that they are in fact ready to produce the first phase of a vaccine trial. We know that the HIV/Aids epidemic increases the incidence of TB and complicates control. Therefore, the allocation to Santa will assist in reducing the TB burden through increased collaboration with role-players at local and regional levels.

I do, however, want to point out that we are extremely worried about the high TB infection rate in the Western Cape, especially in areas like Uitsig, Ravensmead and Khayelitsha. I want to urge the provincial department of health to prioritise TB control, increase compliance rates and strengthen the management of their supervised TB Dots programme. [Interjections.]

The Government has been concentrating on ways to ensure that our doctors and nurses are used efficiently and equitably. The introduction of community service for doctors, pharmacists and dentists results in a reduction in the shortages of personnel in rural areas and an improvement in the quality of care for many who never had such services before, unlike our opposition members, who sit in the comfort of their mansions and call on the best specialists in the country to be at their beck and call whenever they have a minor illness or complaint. [Interjections.] Now, for the first time, many of our people are experiencing the services of nursing and medical personnel as well as clinic facilities. This they greatly appreciate and recognise as making a difference in their lives. I will quote an example from one doctor, who said:

Community service has provided young professionals with an opportunity to develop skills, acquire knowledge, behaviour patterns and critical thinking that will help their professional development.

This is contrary to what some of my colleagues on the left want us to believe. We are considering various options to ensure that we train enough doctors and nurses to work in the public sector. At the current moment the ratio of white to black doctors is about 20:5000.

This situation cannot be tolerated and needs to be addressed urgently. The existence of the wide income disparities has left a large number of South Africans living below subsistence levels. The result is higher levels of poor nutrition. It is here that poverty alleviation strategies will have a major impact in the long run.

The feeding of 5 million school children through the implementation of community nutrition projects over the last five years, is commendable. We need new tools to allow the transition from food and handouts to projects that are sustainable at community level. The allocation for nutrition is welcome as it helps to intensify the efforts to implement the integrated nutrition programme in provinces. We are already seeing results among our children in terms of improved health status and attendances at schools. This programme needs to be supported.

During the reign of the past regime, nutrition projects were stopped to ensure that our children remained malnourished and underperform at school. The intention was to have a cheap and unskilled labour force to serve the regime’s needs. The allocation for cholera and poverty alleviation projects to assist the health sector in dealing with health occurrences that have not been budgeted for is welcome. An example is the outbreak of cholera in KwaZulu-Natal and other areas. The integrated strategy is also commended with the allocation to Water Affairs for speeding up the provision of water and sanitation especially in rural areas. This is to speed up the health status of the population and curb the spread of infectious and contagious diseases.

We thank the hon the Minister for a people’s Budget, a Budget that shows the sweet fruit of good policies, planning and vision. Our people are now, for the first time, tasting the sweet fruits of their liberty, won through years of oppression and struggle.

I support the First Reading of the Appropriation Bill. [Applause.]

Mr E J LUCAS: Chairperson, I am sure that hon members would wish to join me in congratulating the hon Minister of Home Affairs and president of the Inkatha Freedom Party, Prince M G Buthelezi, on receiving the Charlton Heston Under Fire Bravery Award recently in the United States of America, in recognition of his distinguished service to our nation.

On this upbeat note, may I also extend a congratulatory note to the hon the Minister of Finance on the physically prudent and well-crafted framework that has helped put South Africa on a sound economic basis to compete in the global economy and work towards a more prosperous and just society.

In putting the microeconomic fundamentals in place, we agree that it is now appropriate to switch emphasis to focus on the micro side of the economy. We particularly welcome the reduction in interest rates, which will reduce the cost of borrowing for homeowners and increase their disposable income, and further stimulate aggregate demand.

Whilst the increase in pensions is also to be welcomed, the IFP believes a more substantial increase was required to help alleviate poverty and provide a higher standard of living and greater dignity for pensioners. The reduction in the cost of paraffin is to be especially welcomed as it is a measure targeted at the poor. Attention should also continue to be focused on alleviating the plight of the homeless, and to speed up the process of housing provision.

Noting that there has been a concurrent increase in the fuel price with the reduction in the paraffin price, it was unfortunate that the toll road increases coincided with the rise in petrol prices. In this regard, policy consideration needs to be given to encouraging the use of railways to ease road congestion in the provinces with really poor roads. The Government must turn its attention to the formulation of an integrated transport policy that addresses this and environmental consideration.

We are encouraged that the commendable Budget is subject to the process of procedural scrutiny to ensure that any necessary adjustments are made by the end of the financial year to avoid overshooting expenditure targets. The vast majority of our consumers in this country are relatively unprotected. Therefore we welcome Consumer Rights Day, as it would help consumers to know their rights and be able to seek protection.

Let us remember the three miners who were killed at the Coronationville mine. We also pray for their families and their loved ones.

Finally, the issue of unemployment is and remains a major problem in this country. It is time that we all did our best to help resolve the situation. We need development, not only spoken about, but an effort to implement the wonderful ideas, which is a sure way of creating jobs. Let us work together towards this end. [Applause.]

Ms N E HANGANA: Mr Chairperson, Comrade President, members of Parliament, the time has come that we launch a sustained offensive to wipe out poverty in our country and continent. Millions of our people are still condemned to suffer from hunger, malnutrition and diseases. We have to strive to rebuild Africa’s economies, ensure that they are able to generate the necessary volumes of wealth and employment for the people so that we can take our rightful place within the global economy. This we must do as an essential part of the continued struggle for the assertion of the dignity of Africa’s people.

We as the ANC repeat our commitments to the masses of our people to make every effort to ensure that we continue to address their needs and concerns in a continuous pursuit of the goals of a better life for all. In the six years of democratic governance, we have steadfastly redrawn the settlement patterns, removed barriers by extending the security of tenure to farmworkers and outlawed all forms of discrimination. A multipronged strategy saw the implementation of a diversity of programmes honing in to address the heart of the problem and producing positive results.

Our successes were underpinned by the national housing vision, which catered for the country’s poor without fear of favour. We view housing delivery as part of the broader developmental process, and we renew our commitment to housing delivery that makes use of all available capacity and resources. Eradication of the backlog is the most ideal state that any country can aspire to, particularly if it means the eradication of homelessness and poverty alleviation.

Our primary charter consists of people whose earnings are low and to compound the problem we are regarded as high risks by financial institutions. However, most of them are either members of saving clubs or have been effecting some methods of saving individually or through groups. Since the election of a democratic national Government, the development needs of rural South Africa have been recognised and addressed in terms of state policy and allocation of resources.

The current challenge of rural development remains the improvement of the quality of people’s lives and livelihood. There is now more dedication to achieve these aims and a clearer realisation that this will require better co-ordination of efforts, communication and strengthened capacity. Equal access by women to adequate housing, ensuring equal and effective participation of women and their organisations is but one of the key strategies of our Government. Women have also been targeted as beneficiaries of training programmes and the housing service census.

The incidents of violence against women result in many women having a particular need for shelter and safe housing. Housing is not only a residential site, but for many women it is also a site of production. Therefore, the planning and design of housing need to take these socially prescribed roles into account. Women’s marginalised position within the macroeconomy mediates the access to housing in several ways.

The distribution of income is substantially skewed along gender lines. This impacts on the effective demand for housing for women. Women’s position within the formal economy further hampers their ability to participate equally within the housing market. Their dominance within the informal economy creates specific needs with regard to accessing housing finance. Women’s low income levels impact on their ability to save, and this in turn affects their ability to participate in the banking sector.

Poverty also has a different impact on different groups of women: Young women, elderly women, women with disabilities, women living with HIV/Aids and female-headed households. In addition, access to adequate housing under the apartheid regime was historically racially engendered.

In terms of a review document by the development action group, housing delivery in the Western Cape has taken place on a significant scale, but this so-called prosperity is not felt amongst the poor. The same applies to the last matric results, where there were outstanding results only in predominantly white schools. [Interjections.] In predominantly white schools … I direct this to that stupid …

In one of the housing Minmecs, the Western Cape complained that this province is faced with heavy migration of people from other provinces. [Interjections.] This concern could be ascribed to a number of reasons. If one compares the migration of people into Gauteng province, at a rate of 20 000 people a month, it is not because the Western Cape is the best province. Movement of people from rural to urban areas is as old as the hills. [Interjections.] The hon member is too stupid to understand that. [Interjections.] Rather than complain, the Western Cape should rise to the challenge and build more houses. The ANC supports the Appropriation Bill. [Applause.]

Dr P J RABIE: Mr Chairman, hon President, hon Minister, hon Deputy Minister, hon members, one of the characteristics of the of the Budget for 2001, when analysed from a macroeconomic level, is fiscal discipline. In particular, inflation targeting of between 3% and 6% is commendable. Another aspect which must be mentioned is privatisation, which will allow something like R18 billion to be made available. That is also welcome. The crucial question, however, is whether South Africa will be able to attain a growth rate of 6% in order to reduce the deplorably high rate of unemployment and poverty, and also to encourage domestic and foreign direct investment within our country in a sustainable manner.

Our present growth rate, however, is 3,5% of the GDP, and our economy may be adversely affected by the forthcoming possible downturn. The rand has also weakened substantially against the dollar over the past 18 months. The possibility of an increase in crude oil prices cannot be negated, and might also have an effect on our overall economic growth.

The Budget emphasises expenditure on health, education and welfare. The rebate on diesel fuel for a number of sectors of the economy is noteworthy, particularly for rural areas which are dependent on agriculture as a mode of existence. More than 19 million South Africans today live in rural areas, and the zero vat on illuminating paraffin will save R400 million. This concession will ease the financial burden on the needy South Africans who rely on paraffin for domestic purposes.

The question, however, that millions of South Africans must ask themselves is whether there is adequate tax relief in the present Budget. It is generally acknowledged that something like 750 000 South Africans have lost their jobs since 1994, and this is a conservative figure.

All sectors of our economy at present are suffering from a skills shortage partially caused by an alarming exodus of skilled South Africans. Whether the informal sector of our economy is able to absorb the present labour excluded from the formal sector as a result of jobless growth, is questionable.

A number of reasons are often furnished why highly skilled South Africans emigrate. Crime, violence, rigid labour laws, negative tax laws, the decline in educational standards, are some of the reasons. Clearly the emigration of skilled South Africans is in nobody’s interest.

The hon the Minister allowed net tax reductions in his Budget to the order of R9,1 billion. This is realised in the decreases in personal income tax for taxpayers earning under R80 000 per annum. Whether these deductions will spur growth by increased savings and investment in certain economic sectors, is questionable, because if we analyse the issue in a holistic manner, we find that there is little tax relief for middle and high income categories of taxpayers.

The present tax burden on households representing all income categories has escalated at an alarming rate over the past seven years. If all taxes and charges levied at other levels of Government are taken into account, the net tax burden, taxes paid less services received has resulted in household savings becoming virtually nonexistent. Household debt levels have also soared. South Africa is becoming a part of the economic global order.

Tax reforms in others countries are increasingly drawing skilled South Africans towards their economies. The present system of taxing retirement funds at 25% on gross interest is unfair and impacts negatively on lower- income categories. The negative impact of tax on retirement funds is made worse by inflation. The Government intends to recover an additional R500 million from retirements within this particular fiscal year.

The figure goes up, and if we analyse this particular figure in context we will see that approximately 12% of the taxpayers assessed in 1998 - the tax year up to 31 December 1999 - had an income below the tax threshold of R16

1. At present it is R23 111. This percentage does not reflect the number of retirement fund members whose taxable income is less than R60 000 per year and who are not required to submit a tax return.

Many lower-income earners are, as a condition of employment, forced to invest in retirement funds. What this, in actual fact, means is that they are at present subjected to tax at 25% on their investment income. May I also point out that from 1 October all members of retirement funds will also be subjected to capital gains tax. The introduction of tax through the medium of their retirement funds acts as an disincentive to investment in formal retirement instruments. It is calculated by Prof Alwyn de Koker, Professor of Accounting at Wits, that the long-term result of the present tax on retirement funds will reduce the annual return of the retirement fund by between 1% and 1,4% each year.

Capital gains tax is expected to reduce the annual return by a further 0,4 to 0,05% each year. The negative effect is further pronounced because part of the return of the share of the fund is also lost to tax-related costs of administering the fund. The present tax rate of 25% on retirement funds may force a number of retirees, despite years of work, to become partially dependent upon the state for retirement income, because they were forced to participate in a tax purative retirement system.

An urgent appeal is made to the hon the Minister to request competent individuals, well-versed in tax laws, to thoroughly investigate the taxes that relate to retirement funds. If the present tax rate of 25% is to be retained, consider allowing members of pension funds who have been negatively affected by our taxes to be compensated through adequate tax- free retirement benefits such as, for example, a tax-free portion of 20% to 25% of any lump sum or annuity.

Capital gains tax will be implemented on 1 October. The reason given by Government is that this tax will improve social equity by increasing the progressiveness of the tax system. The DA opposes this tax. The question we have to ask ourselves, however, is whether the Government will need the extra money this tax will generate considering the immediate and long-term expenses it will involve. Capital gains tax is a very complex tax. It is generally acknowledged that tax consultants will spend hundreds of man hours to help clients to deal with another new tax, time which should have been used on more productive activities which can generate economic growth and provide employment opportunities.

A prerequisite for a growing economy is a fair and equitable tax system which encourages savings by means of tax incentives. By implementing the capital gains tax, the Government is introducing an inefficient and very low yielding tax. Figures mentioned in this regard vary from 0,1 to 0,2% of GDP. Serious thought must be given to the scrapping of all low yielding taxes in general, such as estate duty and the donation tax, which consume scarce resources.

Total tax revenue to be collected by Sars is expected to be 1,44% or R3,1 billion more than the original estimate of R213,7 billion. Still the tax gap, the difference between what is owed by taxpayers and what revenue collects, is vast. The Financial Mail of 23 February 2001, estimated that more than R30 billion or about 15% of total tax revenue is not collected. The mission of Sars is to concentrate on tax evasion, ruling out corruption, and to implement the new residence-based tax system, not to struggle and implement a very complicated tax system.

The New NP opposes this Bill. [Time expired.]

Mr N M NENE: Mr Chairperson, the hon the President of the Republic of South Africa, hon members, it is that time of the year again when we have to reflect on our Budget and its impact on the citizens of this country.

In his Budget Speech, the Minister of Finance dealt with a wide spectrum of issues, more particularly, the progression towards microeconomic reform from macroeconomic stabilisation. This is characterised in his Budget by, among other things, the tax proposals that were announced.

Measures announced in this Budget will stimulate economic activity by, firstly, raising personal disposable income through income tax cuts; secondly, promoting employment creation through wage incentives; thirdly, encouraging investment in the small business sector and specific strategic investment projects through investment tax allowances; fourthly, enhancing the competitiveness of the primary production sector by providing a diesel fuel tax concession; and fifthly, reducing energy costs for the poor by zero rating VAT on illuminating paraffin.

The income tax cuts amounting to R83 billion will mostly benefit the lower to middle-income groups. This is in addition to the R25 billion already given back to those income groups. Taxpayers earning up to R80 000 per annum will enjoy a tax cut of up to 12% of their taxable income.

A lot of criticism has been levelled at our Government for lack of delivery by the opposition, especially the apartheid partners who, during their time, collected taxes from everyone, but only delivered services to the few. Hence the imbalances that this Budget seeks to address. The ANC Government is expanding its efforts to address poverty through job creation and economic growth. In the state of the nation address on 9 February 2001, the President referred to the reduction of the cost of production whilst stimulating employment. The national Treasury and Sars are investigating economically and administratively efficient tax measures that will encourage job creation by reducing the cost of hiring new workers and of offering apprenticeships or learnerships and encourage the formalisation of employment that is currently in the Government programmes, for example, the Unemployment Insurance Fund, and ensure that their benefits are more widely available.

It is envisaged that this tax relief measure will be operational by October 2001, and will result in a revenue loss of about R600 million in 2001-02. The exemption on income dividends has been increased by R1 000 per person, ie R3 000 for persons under the age of 65 and R4 000 for persons over the age of 65. With regard to state duty and donations tax, these have also been reduced to 20% to allow for capital gains tax.

On capital gains tax, after listening to all the submissions with regard to the introduction of capital gains tax, the coming into effect thereof was postponed to 1 October 2001 instead of 1 April 2001. This will allow institutions to get their systems ready for this tax and also finalise some outstanding issues that will be dealt with when this Bill is brought to this House.

Umbuzo ogulisa abantu bakithi ngale ntela ngukuthi sekunemfundisoze esakazwayo yokuthi izokhinyabeza umnotho, ixoshe abatshali bezimali iphinde futhi icindezele labo bantu abahluphekayo.

Iqiniso-ke lithi le ntela izosiza ekuthini labo abadla izambane likapondo bangayithukusi imali ngaphansi kohlelo lwe-capital gains kepha nakuyo kukhokhwe intela njengalokho kwenzeka kuyo yonke inzuzo. (Translation of Zulu paragraphs follows.)

[The disturbing thing to our people about this tax is the rumour that it will cripple our economy. They say it will chase away investors and oppress the poor.

In fact this tax will help to prevent the rich from hiding money through a capital gains scheme. It will make it possible to pay taxes even in this scheme, as happens in all investments.] In order to realise our dream of service delivery, sufficient revenue needs to be raised in an equitable and fair manner. According to the Medium-Term Expenditure Framework it is estimated that the consolidated national revenue will be R242,615 billion and, looking at the track record of Sars, there is no reason to doubt that this target will be achieved and even beyond.

I, once again, take this opportunity to commend the South African Revenue Service for the significant progress this institution has made in enhancing its capacity and overcoming important challenges to tax collection. Some of the key achievements of the South African Revenue Service are outlined in the Budget Review, and I invite members to take a few minutes of their time to read them.

The most striking ones are the following: The implementation of the new trade agreements; a successful campaign against tax fraud in the retail industry; the launch of a major internal restructuring programme known as ``Siyakha’’, which is being piloted in KwaZulu-Natal; and the implementation of the residence-based taxation which was introduced last year.

We all agree that the tax increases have been kept to a minimum and there will only be a slight increase in the fuel levy, which is below the inflation rate, normal excise duty increases, which affects alcoholic beverages and tobacco, the increase in the skills levy, the closing of the income tax loopholes, and the change in Eskom’s tax status, as well as the review of tax on banks. The other source of income will, of course, come from the unbundling transactions and the restructuring of state assets. To name but a few: Telkom, the sale of M-Cell shares, Denel and others.

The ANC’s commitment to a better life for all is unwavering and no one will deter us from this course. This Budget is living testimony to this and our people can only reap the sweet fruit of liberty year after year. The ANC supports this Bill. [Applause.]

Dr A I VAN NIEKERK: Mnr die Voorsitter, Agb President, die goeie funksionering van die Suid-Afrikaanse ekonomie is noodsaaklik as die Regering die planne om armoede te beveg, wil verwesenlik. Ons ekonomie staar ‘n paar ernstige bedreigings in die gesig. Een daarvan is die bek-en- klou-seer probleem, nie net in Suid-Afrika nie, maar ook dwarsdeur die wêreld. In Suid-Afrika is dit onder beheer, danksy vinnige optrede deur die departemente, wat ek wil gelukwens daarmee, maar in die res van die wêreld versprei dit amper asof dit buite beheer is.

Die siekte kan, soos in die Camperdown geval, maklik die land binnekom via wettige en onwettige invoere, of selfs deur toeriste wat van besmette gebiede af kom. Dit is dringend noodsaaklik dat verskerpte maatreëls op Suid-Afrika se grense spoedig ingestel en toegepas word om die verspreiding van die siekte vanaf die buiteland te keer. Verdere verspreiding van die siekte kan ons handel ernstig knou, en ons ekonomie erg benadeel. Ek hoop dat die Minister die nodige steun sal gee dat hierdie maatreëls in plek kan kom.

Die tweede probleem het te doen met die herverdeling van grond in Suid- Afrika. ‘n Versnelde herverdelingsproses is noodsaaklik om vreedsaam in die toekoms in te gaan, en ek dink nie ek hoef daaroor uit te brei nie. Die potensiaal vir konflik is groot indien ons nie op hierdie gebied presteer nie. Die gevaarligte flikker egter as die staat, soos in die Lydenburg- geval, nie daarin kan slaag om deur onderhandeling ‘n kompromis te bereik vir ‘n oplossing van die probleme aldaar nie.

Deur die roete van geregtelike onteieningsproses nou te volg, word emosies onnodig in die verkeerde rigting gestuur. Dit skep ‘n wantroue tussen die verskillende rolspelers wat by die saak betrokke is. Dit vertraag nie net die grondverdelingsproses nie, maar veroorsaak die verslegting van gesindhede en dit moet vermy word. Voorbeelde soos in Zimbabwe waar die herverdeling van landbougrond nie reg bestuur is nie, het ‘n groot invloed op die ekonomie. Suid-Afrika kan dit nie bekostig nie. In hierdie geval sal ons vinnig moet presteer om die plaaslike probleme te probeer vermy. (Translation of Afrikaans speech follows.)

[Dr A I VAN NIEKERK: Mr Chairperson, hon President, the good functioning of the South African economy is essential if the Government wants to bring the plans to combat poverty to fruition. Our economy is facing a few serious threats. One of these is the foot-and-mouth disease problem, not only in South Africa, but also throughout the world. It is under control in South Africa, thanks to quick action by the departments, which I wish to congratulate on this, but it is spreading in the rest of the world almost as though it is out of control.

The disease can, as was the case in Camperdown, enter the country easily via legal and illegal imports, or even through tourists arriving from contaminated areas. It is vitally important that stricter measures be introduced and implemented speedily on South Africa’s borders to prevent the spread of the disease from abroad. A further spread of the disease could be a serious blow to our trade, and have a very adverse effect on our economy. I hope that the Minister will give the necessary support for these measures to be put in place.

The second problem concerns the redistribution of land in South Africa. An acceleration of the redistribution process is essential if we are to enter the future peacefully, and I do not think I need to elaborate on this. The potential for conflict is great if we do not achieve results in this sphere. However, the danger lights are flashing if the state, as in the Lydenburg case, cannot succeed in reaching a compromise through negotiation to solve the problems there.

By going the route of judicial expropriation emotions are unnecessarily stirred up in the wrong direction. This creates mistrust between the different role-players involved in the case. It not only delays the land redistribution process, but causes a worsening of attitudes and this should be avoided. Examples such as Zimbabwe, where the redistribution of agricultural land was not managed properly, have a great influence on the economy. South Africa cannot afford this. In this case we will have to achieve results quickly in an attempt to avoid the local problems.]

Mr M A MAPHALALA: Chairperson and hon President, at its 50th conference in Mafikeng in 1997, the ANC resolved that transformation should be carried through with minimum interruption of our ability to continue to administer to the needs of all our citizens. The state should make institutional interventions that bring about development and infrastructural transformation in society.

For the first time in the history of South Africa, we have a state and a Government that plan the economic development and growth path with the interest of the poor people as the centre of such plans, as opposed to what was happening in all the regimes prior to 1994. I think that the state and the Government are making all the necessary interventions that will bring about developments in the rural communities, which was the directive from the conference.

In the June 1999 elections the people of South Africa said: ``ANC, you are on the right track, but you are moving at a slow pace. We want speedy change.’’ I believe this is what this Government is doing - speeding up change.

NgoMsombuluko mhla ka-12 Mashi 2001 nganginomhlangano eMsinga noMnyango wezeziMbiwa naMandla kanye nabakwa-Eskom. Lo mnyango wawulethe uhlelo lokufaka ugesi. Lo gesi uzofakwa endaweni lapho kukhona khona omama abaneminyaka engaphezu kweminyaka engama-90. Bathi labo mama: Asikaze siyazi into okuthiwa ugesi kule ndawo. Sigugile namhlanje sibe sigugele emahlathini siyotheza izinkuni futhi sigugele emifuleni siyokha amanzi. Namhlanje uHulumeni usilethele ugesi ezindaweni zasemakhaya. [Ihlombe.] (Translation of Zulu paragraph follows.)

[On Monday 12 March 2001, the Department of Minerals and Energy, Eskom and I held a meeting in Msinga. This department was presenting a plan for supplying electricity. Electricity will be supplied in areas in which women over 90 years of age live. These women said they had never had electricity in this area before. They said: ``Today we are old and we have spent all our lives cutting wood in the forest and fetching water in the river. Today the Government is giving us electricity in the rural areas.’’ [Applause.]]

That is speeding up change. That is bringing a better life for all our citizens. Without focus and concrete programmes aimed at rural development, as well as poverty alleviation plans, the directive given by the conference in 1997 will not be of any meaning to the people of our country. The greatest need of our people these days is that of a better life. In the rural areas, if one speaks of a better life, it is meaningless unless it means access to usable land and resources such as finances and implements for agricultural and farming purposes. [Applause.]

A better life will be meaningless, unless it means access to research information for people to develop their capacity, their capabilities and their potential. It will be meaningless, unless roads are built in the rural areas.

Ngikhulele emakhaya, lapho ngangihamba khona ngezinyawo uma ngiya esikoleni … [I grew up in the rural areas. I used to walk to schoolÿ… ]

… probably not because it was the choice of my parents that I should walk 20 kilometres to school. I had to walk, because there was no road access to that school. Today this Government is building roads deep in the bundu, right down the cliffs. People are able to use buses and other means of transport to those areas. [Applause.]

A better life will mean nothing, unless it means access to health and recreational facilities in those rural areas.

Abantwana bethu akufanele badlale ngamatshe. Abantwana bethu akufanele bahlale emahlathini. Kufuneka kube khona izinkundla zezemidlalo … [Our children should not play with stones. They should not stay in the bush. Playgrounds should be built … ]

… and all those sorts of things. This Government makes it a central programme to develop such resources. [Interjections.] On 9 February, the President stated the following in his address, and he quoted from the Millennium Declaration:

We will spare no effort to free our men, women and children from the abject and dehumanising condition of extreme poverty to which more than a million of them are subjected. We are committed to making the right to development a reality for everyone, and freeing the entire human race from want.

Comrade President went on to say:

We are resolved, therefore, to create an environment conducive to developing and eliminating poverty.

This is what is happening. Those are not empty words. We see them in reality. We see them in practice. We very clearly see the commitment to bring about a better life for our people in the country. Only the ANC-led alliance is committed to this kind of development in the country. [Interjections.] Before this we have never seen this kind of programme developed by a government. It is a programme that has the interest of people at heart and as its central driving force. Indeed, we are a nation at work. We are steadily moving away from the painful past, a past where, if at all the government were to have a budget that had something to do with the rural communities, it would have been for the forced removal of our people from areas where they were. [Interjections.] [Applause.] We are moving away from that past that had a government that regarded people as instruments for generating profit, and that used the rural areas as dumping areas for the unemployed.

We are moving into a society in which our people in the rural areas have the right to vote for the first time in the history of this country. [Time expired.] [Applause.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Order! Before I recognise the next speaker, I wish to make a ruling on the point of order taken by the hon Gogotya. I have said that I would like to look at the Hansard, but having reflected on the matter, I am now in a position to give you a ruling.

The hon Gogotya raised a point of order regarding a statement by the hon C W Eglin. At issue was whether the hon Eglin could hold that President Mbeki was condoning certain acts of President Mugabe of Zimbabwe. Freedom of speech, as practised in Parliament, is only constrained to the extent that it does not reflect on the integrity of another member or, for that matter, on the President - when the President is in the House.

If the hon member Colin Eglin had used the word conniving'' it would indeed have reflected on the integrity of the President. The word condoning’’, however, is a perspective that one side may have. It is counterbalanced by the other side, equating the same activity with diplomatic engagement. That one side can put a negative construction to a political act and another side a positive construction, is legitimate in parliamentary politics.

Individual members may disagree on how they see South Africa dealing with problems in Zimbabwe. The hon Eglin, therefore, may not be precluded, in terms of our Rules, from using the word ``condoning’’.

Mr C W EGLIN: Mr Chairperson, I would like to address you on that. I think that all the hon members heard me. I said that certain things were happening in Angola and Congo … [Interjections.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon members, can you not hear? Order! Hon member, could you please speak into the microphone so that the members can hear.

Mr C W EGLIN: Mr Chairperson, I said that there were certain problems, first of all in Angola, and then that there were problems in Congo and also that it was the presidentially condoned rule of law in Zimbabwe. I never mentioned the President. He was sitting here. I did not refer to the President. I was talking about what was happening in each of those three countries. That had no reference, whatsoever, to President Mbeki.

The DEPUTY CHAIRPERSON OF COMMITTEES: Thank you. I think that that clears the matter up further.

Mrs P W CUPIDO: Mr Chairperson, the greatest challenge that this country is facing today is to alleviate poverty and provide adequate safety nets for the poorest of the poor.

Human dignity demands that all people should have the means to meet their basic needs of food, clothing, housing and health care. Every child must have access to education and every adult must have the opportunity to participate fully in society and pursue goals of personal development.

Everybody in this House agrees with these ideals in principle. In the turmoil of our daily political and economic reality, however, these ideals seem to get lost. The Convention on the Rights of the Child says, in clause 24 (1) and (2), that every child has the right to benefit from social security, including social insurance. The Constitution of South Africa says, in section 27 (1)(c), that everyone has the right to have access to social security and where appropriate, social assistance. Section 28 (1)(c) says specifically that children have the right to shelter, basic health care services and nutrition.

Just the other year, 1994, the ANC screamed at every street corner, ``We will provide houses, jobs, free education and free basic health care’’. [Interjections.] Instead, most of these people became poorer. Retrenchments and forced retirement packages became the order of the day. Children stopped being children at the age of seven. Children who are seven to 18 years fall through the safety net of the state and must now survive on fresh air. [Interjections.]

Consequently, I can safely say that, with no provision for 70% of poor children, this Government forces these children to the streets to become street children. They are forced to steal, thus the large number of juveniles in the prisons. Children are forced to head households because of the traumatic results of Aids and they are also forced to become child sex workers and are exposed to child labour and abuse. It is true. Did the Minister of Finance bother to mention any of these children in his Budget Speech? No, he did not.

Die kinders van arm huisgesinne en wie se ouers min of geen opvoeding het nie, spandeer steeds agt jaar en minder op skool. Hulle word blootgestel aan die arbeidsmark as ongeskoolde en ongekwalifiseerde arbeiders. Ons het verskillende kategorieë van kinders wat daar buite skree om hulp.

Verder het die Minister van Finansies met groot bravade aangekondig dat die pensioentrekkers ‘n verhoging van R30 per maand kry. Wat is die werklike inpak van daardie R30 op hulle daaglikse lewe? Ons moet ook in gedagte hou dat pensioentrekkers blootgestel is aan verwaarlosing, mishandeling en diefstal. (Translation of Afrikaans paragraphs follows.)

[Children from poor families whose parents have little or no education are already spending eight years and less at school. They are exposed to the labour market as unskilled and unqualified labourers. We have various categories of children out there who are crying out for help.

The Minister of Finance further announced with great bravado that pensioners would be receiving an increase of R30 per month. What is the real impact of that R30 on their daily lives? We must also keep in mind that pensioners are exposed to neglect, abuse and theft.]

The Minister announced in his Budget Speech that grants would be inflation- linked over the medium term. However, the allocation to social development over the medium term only indicates an increase of 0.8% annual average growth. It does not adequately take into account the inflation-linked increases since grants constitute 90% of the social development budget. Given that the take-up rates were increased over the medium term, the 0.8% increase remains insufficient. The Democratic Alliance says that this Government must find a way of giving hope to those people of this country who no longer have any hope.

In order to alleviate poverty, we would first have to revisit and amend our ways in trade policies to make this country investor friendly. We must reduce crime. We must provide free education, and a really free education. We must treat our children of 7 to 18 years as dependants of the state where it is applicable. We must ensure capacity-building and sufficient training for civil servants, to enable them to cope with the transformation in all the departments. We must ensure proper management and commitment at the most senior levels, including the Ministries. We must get rid of obstacles in the departments.

In conclusion, this Government must ensure that all available state support reaches the poorest of the poor at grassroots level. We must ensure successful delivery. We must improve our delivery mechanisms.

Miskien is ‘n daadwerklike transformasie van die Kabinet die antwoord vir die land se probleme. [Tyd verstreke.] [Applous.] [Maybe the actual transformation of Cabinet is the answer to the country’s problems. [Time expired.] [Applause.]]

Mr S K LOUW: Mnr die Voorsitter, die enigste opmerking wat ek kan maak betreffende die vorige spreker is, die navorsing wat aan haar gegee is, van watter aard ookal, is ernstig misleidend. [Mr Chairman, the only remark that I can make in respect of the previous speaker is that the research that she has been given, of whatever nature it may be, is seriously misleading.]

It is indeed an honour to participate in this Appropriation debate. I have listened to our President during the state of the nation address, and also to the Minister during the discussion of his Vote. I can tell hon members that there is hardly any opening for criticism. The Minister has certainly earned himself the title of the people’s Minister during his Budget Speech. Vast numbers of South Africans are enthusiastically welcoming the Budget. They have been waiting for a sign of economic relief. And that is precisely what this Budget does! We are turning our backs on the ugly past of colonialism, apartheid, hunger, disease and poverty. We are turning our backs on underdevelopment and economic dependency. We are constantly reminded about our past, where we come from and the direction in which we are going. We need to remind ourselves that our mandate is to ensure a better life for all. Therefore, it is necessary for us convincingly to conquer poverty, in order to make real the dream of the African Renaissance, and to position ourselves in the African century.

We must bear in mind that the Minister’s efforts, approach and strong vision in addressing social needs, which are accompanied by strong social programmes and macroeconomic discipline, have maintained the high and strong vision that our country needs, and that is to uplift us from the ashes of apartheid’s past. Now is the time to build on the foundation laid by our heroes and heroines, those great revolutionaries who conquered apartheid oppression. Poverty is a priority that needs to be tackled and I want to commend the Minister for that.

Wat opvallend was gedurende die President se toespraak, sowel as die Minister se begrotingsrede, is dat die klem herhaaldelik geval het op die ontwikkeling van die plattelandse gebiede en werkverskaffing in daardie gebiede. Die programme om daaraan te voldoen, is duidelik met die nodige prioriteite uiteengesit. Die Minister het ongetwyfeld die opposisie met hul tong in die kies gevang.

Een stukkie advies wat ek aan die opposisie kan gee, is dat hulle moet wakker skrik en saam met die stroom beweeg. Hulle moet ophou om met moedswillige politiekery vorendag te kom en vinnig hulle oogklappe afhaal. Ons land is besig om sy posisie in die globale ekonomiese mark in te neem, en die begroting van die Minister pas soos ‘n legkaart inmekaar. (Translation of Afrikaans paragraphs follows.)

[What was obvious during the President’s address, as well as the Minister’s Budget Speech, was that emphasis was repeatedly placed on the development of the rural areas and the provision of jobs in those areas. The programmes to give effect to this have clearly been expounded with the necessary priorities. The Minister undoubtedly caught the opposition tongue in cheek.

One piece of advice that I can give the opposition is that they should wake up and go with the flow. They should stop their wilful politicking and take their blinkers off quickly. Our country is taking its place in the global economic market, and the budget of the Minister is like the interlocking pieces of a jigsaw puzzle.]

There has been an overwhelming outcry from communities for grid electrification which, from the perspective of consumers, is cheaper and more versatile, and also allows a range of appliances to be used. More extensive grid electrification would revolutionise domestic and economic activities in some areas. Some already have it.

Many people in rural areas can afford electricity, but do not have access to it. These include many existing and potential small and micro- entrepreneurs. There is also a bigger group that cannot afford electricity at current prices, even if electricity were to be provided. These groups meet their energy needs by using a combination of different energy sources such as firewood candles and paraffin.

Paraffin is an important energy source for low-income households. I want to applaud the Minister for alleviating the plight of those poor people. The zero rating of paraffin certainly saves people many rands. Millions of our brothers and sisters are still using paraffin. There are also other independent power providers who have shown an interest in entering the electricity distribution market, and rural areas are going to benefit from the natural gas pipeline from Mozambique.

One needs to look at the massive spin-offs of such activities, which will contribute to the culture of entrepreneurship. Another project which is in the pipeline is the new form of nuclear energy that will certainly be a massive income generator for our country. And to crown it all, it is very cheap and affordable. Poor people will definitely benefit from it.

Allow me to use this opportunity to highlight one of the historic shifts that has taken place in our political era. The mineral development Bill that will be debated later this year will certainly be one of the most important economic Bills in this House. It will ensure a radical shift from the past, and will certainly unlock national wealth and create new jobs and prosperity. No longer will we be observers of mining activities, but creators of wealth, co-owners and co-employers. We shall be able to stimulate the exploitation of untapped resources of mineral wealth.

Allow me to quote from a scroll in my office:

When the race is run, all humanity and ourselves will acknowledge the fact that we only succeeded because we believe in our own dreams. Every year the rains will fall to bless our efforts; that too is a dream. But because it is our dream, we are able to demand of our ancestorsÿ … Pula, nala. Ke a go leboga. [Legofi.] [Prosperity. I thank you. [Applause.]]

Mr M F CASSIM: Chairperson, colleagues, yesterday when the President was responding at question time, he called on us as members of Parliament to be directly involved in the mobilisation of the South African society. This afternoon the hon Viljoen, when he was making his swan song address, once again called on South Africans to remember what was achieved during the multiparty conference, and to find common purpose and common ground.

My colleagues, the hon Lucas and hon Bekker, who spoke this afternoon, were able to do something from the side of the opposition which is really unusual. [Interjections.] They think that we are not an opposition, but I would like to engage them someday in a very detailed discussion of the new politics and political signs that are evolving in South Africa. It is important for them to understand that adversarial politics is not the only line of opposition in politics. The ability to be able to sit on the opposition side and be able to openly admit that one agrees, is a moral stance. It is not necessary for the opposition to always oppose everything that is being said and done.

The hon Feinstein, in a very fine speech indeed, indicated to us this afternoon the need to talk this country up.

Mr G B D McINTOSH: [Inaudible.]

Mr M F CASSIM: Yes, I know. If one were to ask that particular individual what his contribution was in terms of rolling up his sleeves and working for the rural, common and ordinary poor people, there would be snide remarks. He finds himself in a very privileged position and has a good education. He has a haughty attitude that he has brought from the past. It is irrelevant now, but he continues to show this haughty attitude. [Applause.] I would like to encourage him to come forward in the spirit of the new South Africa and participate. There are at least 39 million people in this country who are waiting for a new transformation that will see the creation of job opportunities. The hon Feinstein made the point this afternoon that we needed to talk this country up. Yesterday the hon President also invited members of Parliament not merely to resort to words, but to translate these words into action. The time has come for us to roll up our sleeves and build our country together.

It is remarkable that in seven years we have come this far. We could go so much further if we are to begin to show our common loyalty, dedication and commitment to South Africa. How can we do this? The IFP believes that this Parliament should go back into workshops to determine how we can deal with issues such as crime and the disproportional education that is still being dished out in South Africa. How can we deal with the lack of skills in the IT sector, so that we can add value to the good Budget that is already in place. We should build this country block by block.

We need not only the ability to stand and enjoy the privilege of speaking in Parliament, but to have the greater right of knowing that we are directly involved in the building of this country. That is the challenge which we should face. Therefore, I am telling this House and the ANC in particular, to take up what was offered yesterday by the President when he called on us as members of this Parliament to actually begin mobilising the people. We can mobilise our people to ensure that crime is tackled, better skills become available and we do not only engage in negative sentiment.

The right to speak is one thing, but the right to listen and afford the next person or party an opportunity to be heard is an equally compelling right. If one says that one is democratic, then one should show what that means more than anyone else. One should be the first one to say what democracy is. But to be constantly hectoring, lecturing and pointing out faults without saying that we should be first in the line is not right. This my challenge to the House: we should be first in the line to serve our rural communities, the people who need uplifting, because the Minister has given this Parliament and country a platform from which we can go forward.

In all the years of NP rule, they were not able to produce one budget that was as good as the one he has produced. That is a telling point. [Applause.] Therefore, instead of harping on the criticism, they should recognise that we are fortunate in this country to have someone here of the ilk of Trevor Manuel who has given us the basis. Now, having done that, it is not only what he and the President can do, but what we can do. Therefore, we are asking for the opportunity to be given a role, to do much more than talking, to roll up our sleeves, ensuring that we deliver to South Africa. We have here, within our country, people who are committed by goodwill and dedication to achieve the greater good for South Africa. [Applause.]

Ms G L MAHLANGU: Mr Chairperson, hon President, colleagues, ladies and gentlemen, I am a proud African woman born and bred in rural South Africa. Like most rural women, I was trained and prepared to spend long hours preparing food for my family as a daughter and later as a wife and mother. When one’s immediate aim is to find resources to sustain one’s family, it is very easy to miss the connection with the environment. One has to know where to get water and firewood for survival.

The Magaliesburg mountains, which are the backdrop of the area where I grew up, renowned for their scenic beauty, have held a different meaning in my life, dictated by prevailing realities in our country at that point in time. The Pilanesberg National Park had an equally different meaning to me and other Africans at the time when this country was held hostage by overplayed racial differences. I am mentioning this so that members understand the constant beam on my face and that of my colleagues as we deal with business discharged to us by this House.

As the President said in his state of the nation address: ``We are a country united in action for change.’’ So often the current and potential role that the environment can play in healing our land is underestimated. Our forefathers usually held meetings under a tree, which I am sure played a role in neutralising tempers and providing shade from the harsh African sun. The green environment has, for centuries, had a special place in our hearts as Africans for cultural and customary practices. This is what the previous governments deliberately neglected - in fact, sought to destroy.

I am not in any way trying to polarise races and hit back on the gains that we have made in uniting the people of our country. We have made strides as a country towards reconciliation. In his state of the nation address, President Mbeki articulated well the current manner in which the South Africans perceive themselves. He stated:

We share a common destiny from which none of us can escape because, together, we are human …

What I am saying is that the environment, which has a special role to play in our lives, can and will be a major contributor in strengthening the bond or common destiny that we share as South Africans.

In acknowledging the significance of the role that the environment can play in nation-building, we equally have to acknowledge the inherent need to address the past injustices that were perpetrated under the guise of environmental conservation. Such injustices were carried out in the form of forcibly fencing people out of their natural resource base in an attempt to establish nature reserves. Those who were forcibly removed or excluded from their resource base remain to be reunited with it. We are working closer with departments that are dealing with issues of land restitution and towards full integration of the African majority to play a meaningful and active role in the South African economy.

The challenges facing all governments are, firstly, the establishment and management of democracies, and secondly, building and managing the economy towards prosperity and poverty reduction and its final elimination. In as far as these two are concerned, we have done extremely well as a country. In South Africa, the challenge is greater, because of the apartheid legacy and challenges of transition towards a nonracial, nonsexist, democratic and prosperous country. The task is even more difficult, given the continued resistance against transformation by backward sections represented by the DP and the New NP.

The South African miracle, launched in 1994, has been further enhanced by the Government in its management of both our democracy and the economy. The present can only be growth-oriented, because of these successes. We are now able to talk sensible macroeconomics in the area of tourism and so on. We are confident of the future in this regard, given the world economic trends indicating that super service industries like telecommunications, information technology and tourism are on the rise.

This Budget and the President’s state of the nation address create a conducive national, social and political framework for an effective engagement with these global trends. Increased spending on infrastructure, flexible labour markets and continued tax reform, in the context of macroeconomic stability and good governance, could only make our country even more attractive to tourists and foreign direct investors. Minister Manuel’s latest Budget Speech is a tool that seeks to unlock the potential of our country, especially in spheres aimed at emancipating the marginalised.

We enter this century, which African people declared a century in which Africa would reclaim the centre stage, from where she was pushed by the merciless plunder of her resources by those who sought to fragment and colonise her. With each day that passes Africa takes a step forward in reclaiming her rightful place in our international society. President Mbeki mentioned in his state of the nation address, and I quote:

Together, we must turn into reality a new internationalism that does not permit of the coexistence, within human society, of opulence and grinding poverty, of thriving modernity and a dehumanising underdevelopment.

We welcome the well-thought plan of the Millennium African Recovery Programme with its challenges, and commit our utmost energies in realising the African dream. We will continue to fight with every ounce of our energies in giving our people the better life that they so much deserve. This collective desire and effort to take our country and continent to higher levels of prosperity occupies the heart of all our peoples.

As a country, we have made ourselves available to provide a gateway for goodwill ventures to the rest of our continent. I mention goodwill with the thought of what our shores were used for in the past. We will not allow exploitation of this country and the continent anymore.

Through this Budget, we will be able, amongst other things, to enable the Department of Environmental Affairs and Tourism to package and offer the rest of the world the wonder that lies waiting in South Africa. I am proud to be South African, and even prouder to be an African.

In September of next year our country will be hosting the UN Earth Summit. We are hosting this summit ten years after crucial and groundbreaking decisions were taken in Rio de Janeiro in 1992.

In my conclusion, I would like to reiterate what President Mbeki said:

Ahead of us is a new century and millennium. We march into the new era of the African Century as Africans who have made the determination that this century will be a hundred years in which we cease to be victims of our circumstances but become victors.

I am honoured to work with those who are charged with the task of steering South Africa away from its painful past. [Applause.]

Debate suspended.

The House adjourned at 18:18. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS:

National Assembly and National Council of Provinces:

1. The Speaker and the Chairperson:

 The following papers have been tabled and are now referred to the
 relevant committees as mentioned below:


 (1)    The following paper is referred to the Standing Committee on
     Public Accounts for consideration and report. It is also referred
     to the Portfolio Committee on Agriculture and Land Affairs and to
     the Select Committee on Land and Environmental Affairs:


     Report of the Auditor-General on the Financial Statements of Vote
     22 - Land Affairs and the Registration of Deeds Trading Account
     for 1999-2000 [RP 131-2000].
 (2)    The following paper is referred to the Portfolio Committee on
     Arts, Culture, Science and Technology and to the Select Committee
     on Education and Recreation:


     Report and Financial Statements of the Board of Control of the
     Woordeboek van die Afrikaanse Taal for 1999-2000.


 (3)    The following papers are referred to the Portfolio Committee on
     Finance and to the Select Committee on Finance:


     (a)     Report of the Registrar of Short-Term Insurance for 1999-
          2000.


     (b)     Report of the Registrar of Long-Term Insurance for 1999-
          2000.


 (4)    The following paper, submitted to Parliament on 8 March 2001 in
     terms of section 92(2) of the Promotion of Access to Information
     Act, 2000 is referred to the Portfolio Committee on Justice and
     Constitutional Development and to the Select Committee on Security
     and Constitutional Affairs for consideration and report:


     Regulations in terms of the Promotion of Access to Information
     Act, 2000 (Act No 2 of 2000).

TABLINGS:

National Assembly and National Council of Provinces:

Papers:

1. The Minister of Safety and Security:

 Report of the Independent Complaints Directorate in compliance with the
 Domestic Violence Act, 1998 for the period June to December 2000,
 submitted to Parliament in terms of section 18(5)(c) of the Domestic
 Violence Act, 1998 (Act No 116 of 1998).


 To be referred to the Portfolio Committee on Safety and Security,
 Select Committee on Security and Constitutional Affairs and to the
 Joint Monitoring Committee on the Improvement of Quality of Life and
 Status of Women.