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National Assembly - 06 November 2002

WEDNESDAY, 6 NOVEMBER 2002 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY
                                ____

The House met at 15:05.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS see col. 0000

                          NOTICES OF MOTION

Ms G L MAHLANGU-NKABINDE: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes that - (a) South Africa is celebrating November as Environment Month;

   (b)  during these celebrations, the Government and other stakeholders
       will -


       (i)   be highlighting the importance of protecting the
              environment and the economic benefits of conserving
              genetic resources for all communities; and


       (ii)  mobilise communities to sensibly exploit and preserve
              natural resources in a sustainable manner for future
              generations and to work towards ensuring that all South
              African citizens have the privilege of enjoying a clean,
              healthy and green environment; and


   (c)  that these programmes will be carried out in the proud spirit of
       the extraordinary success of the largest-ever United Nations
       Conference, the World Summit on Sustainable Development, held in
       Johannesburg recently; and

(2) calls on South Africans to join the planned activities for this month and be actively involved in the implementation of the WSSD resolutions.

[Applause.]

Mr W J SEREMANE: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DP:

That the House -

(1) notes that -

   (a)  there was great confusion between the President, the Deputy
       Minister of Foreign Affairs and the Deputy President about peer
       review of political governance in African countries; and [Interjections.]


   (b)  these mixed messages have damaged the effort to promote Nepad;

(2) further notes with appreciation that the President of Nigeria gave a firm lead, and that 12 African countries signed an agreement subjecting their countries to political governance peer review; and

(3) requests the President to urge all other African countries to sign the agreement so that political governance peer review is delivered in terms of our undertakings to the G8.

Mr M A MZIZI: Chairperson, 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 the City of Johannesburg has launched a massive clampdown on inner-city slums and has gone so far as to obtain court orders limiting property rights and authorising evictions and the sealing off of buildings at the owner’s cost in cases where buildings were allowed to deteriorate into slums;

(2) further notes that the owners are required to present a business plan to the city authorities before they are allowed to take back their buildings; and

(3) expresses the hope that this initiative will be successful and that property owners will take the necessary steps to ensure that buildings and other property meet lawful safety and health standards.

Nksk Z A KOTA: Mhlali-ngaphambili, ndazisa okokuba xa iphinda ihlala le Ndlu, ndiza kundulula egameni le-ANC:

okokuba le Ndlu -

(1) iqaphele ukuba uRhulumente wentsebenziswano phakathi kwe-ANC ne-NNP eNtshona Koloni uza kufaka isandla, ancedise abafundi abathe batshelwa ngamakhaya eWallacedene naseJoe Slovo, eKapa, kule mpelaveki idlulileyo;

(2) ikholelwa ekubeni eli nyathelo libonisa ukuzimisela kukaRhulumente wabantu ekwakheni isizwe esinonophelo kunye nekamva labantwana bonke eliqaqambileyo;

(3) iyalamkela eli nyathelo lithatyathwa nguRhulumente we-ANC ne-NNP kwiphondo leNtshona Koloni; yaye

 4) ihlaba ikhwelo kubantu bonke baseNtshona Koloni ukuba balandele lo
    mzekelo mhle kangaka. (Translation of Zulu notice of motion follows.)

[Mrs Z A KOTA: Mr Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes that the Government of unity between the ANC and the New NP in the Western Cape has agreed to assist the learners whose houses were destroyed by the recent fires in Wallacedene and Joe Slovo settlements in Cape Town during last weekend;

(2) believes that this action shows that the Government of the people is committed to building a nation that takes care of the future of all its children;

(3) welcomes this action by the ANC-led Government together with the New NP in the province of the Western Cape; and

(4) invites all the people of the Western Cape to follow this nice gesture.] Mr A Z A VAN JAARSVELD: Chairperson, 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 disgust that yet another little girl from Gauteng has been sexually abused and admitted to hospital - the fourth reported case of child rape in the province this week;

(2) further notes that -

   (a)  police dealing with child abuse cases are hopelessly
       understaffed and underresourced;


   (b)  the Child Protection Unit of the SAPS is fighting a losing
       battle, considering that in Gauteng alone there is a shortage of
       124 officers, and in the Limpopo province, 108 officers, with a
       grand total of 597 officers countrywide; and
   (c)  these shortages have a direct impact on the escalation of
       violence against children; and

(3) urges the SAPS, as it is expected to make 445 new appointments before 2003, to speed up this process so that our communities can be protected against these atrocities.

Ms N C NKABINDE: Chairperson, 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 dismay that the estimated average price of medicines sold to the public has risen by 12% in the past three months;

(2) recognises that high medicine inflation, like high food inflation, affects the vulnerable and the poor, and is a threat to the health of our nation as enshrined in the Constitution; (3) takes note of the Pharmaceutical Manufacturers’ Association’s claim that end prices to the consumer are 100% higher than the manufacturer’s price due to costs added in the distribution chain from wholesalers to retail pharmacies and medical schemes or health insurers, which makes it one of the most expensive distribution chains in the world; and

(4) resolves to address this situation in consultation with the Ministers of Health and Trade and Industry.

Ms C M P RAMOTSAMAI: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes that -

   (a)  the ANC Government has donated a grant of R150,9 million to the
       Marine Living Resources Fund (MLRF);


   (b)  the fund received an amount of R151 million from the application
       fees for fishing rights during the 2001-02 financial year; and


   (c)  this fund was established in terms of the Marine Living
       Resources Act, Act 18 of 1998, in order to ensure conservation,
       sustainable utilisation, orderly access and protection of marine
       resources; and

(2) believes that this reflects the commitment of the ANC Government, in partnership with the private sector and fishing communities, to preserving our natural resources and facilitating the sustainable use of the marine resources; and

(3) commends the ANC Government and other stakeholders for their contribution to the Marine Living Resources Fund.

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

That the House -

(1) notes with dismay that some employers of foreign descent tend to exploit the goodwill of the Government and the local workforce;

(2) takes exception to the conduct of the owner of Kingdom Poly, a plastic factory in Ga-Rankuwa, in the North West province, whose employees work without protective clothing in unhygienic conditions;

(3) calls to order the employer who has the guts to try to deny the inspectors from the Department of Labour access to the filthy premises; (4) supports the Department in exposing these unscrupulous sharks who are in quest of wealth without giving due regard to the welfare of their employees; and

(5) commends the inspectors of the Department of Labour for the job they do without fear or favour when the need arises.

Dr M S MOGOBA: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the PAC:

That the House -

(1) notes the call by the Minister of Education for the creation of an African University;

(2) believes this is a novel idea that should be carefully studied, as it may be a vehicle of liberation and may enhance the great values and attributes of this continent; and

(3) recommends that the study of Swahili, French and Portuguese should be given high priority as our colonial legacy has created wide, almost permanent, gulfs between states of Africa, and that the unification of Africa may never be fully realised if our people cannot communicate easily.

Mr R J B MOHLALA: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:

That the House -

(1) notes that -

   (a)  the theme for the month of November is ``Environment'';


   (b)  the Department of Environmental Affairs and Tourism, in
       collaboration with the Department of Arts, Culture, Science and
       Technology, is embarking on a coelacanth research project, which
       aims to conserve South African coelacanths;


   (c)  the ANC Governemnt gave the National Botanical Institute a grant
       to the tune of R49,9 million;


   (d)  this research project also aims to stimulate marine science
       among students from previously disadvantaged communities in the
       SADC region through focusing its recruitment strategy primarily
       on this sector; and


   (e)  this grant is to be used to maintain eight public gardens in
       South Africa, these gardens having attracted over a million
       tourists and visitors; and

(2) believes that this reflects the commitment of the ANC Government to conserving marine species and the promotion of sustainable use and appreciation of the environment in line with the WSSD plan of implementation. Mr N J CLELLAND-STOKES: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DP:

That the House -

(1) notes that -

   (a)  the Umsobomvu Youth Fund launched its new voucher programme in
       Durban at the city's luxurious five-star Hilton Hotel;


   (b)  the 150 guests feasted on smoked salmon and seafood and quaffed
       wine and drink in the Hilton's luxurious ballroom; and

[Interjections.]

   (c)  the fund did not disburse a single cent to stimulate job
       creation or develop skills amongst the youth for the first three
       years of its existence; and

(2) calls on the Minister of Labour, under whose authority the fund operates, to explain this appalling extravagance, and to undertake to investigate the spending priorities of the fund.

Mr E J LUCAS: Chairperson, 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 with sadness that three people were killed and four are still in hospital with serious injuries after the building they were constructing collapsed in Chatsworth, KwaZulu-Natal;

(2) expresses its sincerest condolences to the families of the deceased and prays for the full and speedy recovery of the injured; and

(3) hopes that the investigation being conducted by the Department of Labour gets to the root of the problem and identifies the reasons for the collapse of the building in order to prevent similar tragedies from occurring in future.

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

That the House -

(1) notes that -

   (a)  Fred Gamble, who suffers from Down's syndrome, won nine medals
       at the Down's Syndrome International Swimming Championships in
       Berkshire, England, last month;


   (b)  the ANC Government has developed and implemented policies that
       empower, defend and uphold the rights of people with
       disabilities;

(2) believes that his achievement serves as an inspiration to all young people to work hard to overcome obstacles they experience and realise their goals; and

(3) congratulates Fred Gamble for winning these nine medals.

Mnr J W LE ROUX: Mnr die Voorsitter, hiermee gee ek kennis dat ek by die volgende sitting van die Huis sal voorstel:

Dat die Huis -

(1) kennis neem van die vernietiging en skending van ons nasionale erfenis deurdat -

   (a)  besoekers stukke rots van Tafelberg verwyder en selfs afkap, en
       in die proses skaars plantspesies vernietig;

   (b)  stukke sandsteen vanaf Robbeneiland verwyder word;

   (c)  histories belangrike rotstekeninge geskend word; en

   (d)  graffiti ons geboue ontsier; en

(2) weer eens ‘n beroep op die owerhede doen om drastiese maatreëls in te stel sodat bogenoemde praktyke onmiddellik stopgesit kan word. (Translation of Afrikaans notice of motion follows.)

[Mr J W LE ROUX: Mr Chairperson, I hereby give notice that on the next sitting day of the House I shall move:

That the House -

(1) notes the destruction and desecration of our national heritage by -

   (a)  visitors removing and even chopping off pieces of rock from
       Table Mountain, and in the process destroying rare plant
       species;

   (b)  pieces of sandstone being removed from Robben Island;

   (c)  historically important rock paintings being defaced; and

   (d)  graffiti defacing our buildings; and

(2) once again appeals to the authorities to establish the necessary measures in order to put an end to the above-mentioned practices.]

               A HAPPY RAMADAN MUBARAK TO ALL MUSLIMS

                         (Draft Resolution)

Mr D H M GIBSON: Chairperson, I move without notice:

That the House -

(1) notes that -

   (a)  today marks the start of the holy month of Ramadan;

   (b)  it is a month of fasting; and

(2) wishes all Muslims a happy Ramadan Mubarak.

Agreed to.

          ILLEGAL MARRIAGE OF FOREIGNERS TO LOCAL RESIDENTS

                         (Draft Resolution)

Miss S RAJBALLY: Chairperson, I move without notice:

That the House substitutes the resolution adopted on 31 October 2002 concerning the illegal marriage of foreigners to local residents by the following:

That the House - (1) notes the illegal marriage of foreigners to local residents to gain South African citizenship;

(2) further notes that in a number of cases these ``marriages’’ take place without the consent of the local residents and involve the use of their identity documents without their knowledge; and

(3) calls on the Minister of Home Affairs to ensure that this illegal practice is curtailed immediately to prevent others from unknowingly becoming victims.

Agreed to.

                     REVENUE LAWS AMENDMENT BILL

                           (Introduction)

The MINISTER OF FINANCE: Mr Chairperson and hon members, the Bill before the House today represents a closing chapter of two years of fundamental structural tax reforms, which included the introduction of Capital Gains Tax and the residence-based income tax system, with the view to broadening the tax base.

This Bill ensures that these reforms will work more smoothly and consistently with each other. It also seeks to remove some anti-avoidance rules that impose unnecessary hurdles to valid business transactions.

The Bill ensures that the various tax aspects of all the reforms fully tie together. The adjustments process is a typical natural by-product of any major legal change. Indeed, in many developed countries, this process can take years to unravel, a process that we expect to avoid with a clear intention of lowering tax rates and rendering this economy a more attractive investment destination.

The Revenue Laws Amendment Bill accordingly makes technical adjustments to all the base-broadening efforts. The biggest changes came in two areas. Firstly, sweeping technical changes were made for the tax rules regarding company reorganisation. Secondly, sweeping technical changes were made for the taxation of foreign currency. Both levels of changes were instigated by extensive internal review with the National Treasury and Sars, as well as by taxpayers’ submissions.

Consistent with the international experience, both areas are quite complex, representing systems on top of systems and systems within systems. Much of this complexity stems from their objective and transparent nature. Hence, it needs to be noted that true democracy demands that all rules be fully stated within the text of the law. Full disclosure of the law also avoids time-consuming requests for Sars rulings and the exercise of discretionary powers, all of which could act as barriers against speedy corporate action and could add considerably to otherwise avoidable transaction costs.

In respect of further developments in the Bill, the Bill also seeks to resolve some long-standing administrative problems that have emerged over the last two years. These issues involve business travel and the taxation of foreign diplomats. Under prior law, taxpayers could disregard advanced lump-sum domestic and foreign travel allowances for purposes of their tax calculations if those sums fell within specified monetary thresholds.

These rules allowed taxpayers to disregard any tax on these sums without the use of tedious receipts, which were difficult for taxpayers to maintain and wasteful for Sars to review. All that was needed was proof of actual travel. Problems had arisen as of late with these advances because the monetary thresholds had become obsolete and wholly insufficient to cover rising domestic and international costs of travel.

The Revenue Laws Amendment Bill modifies these thresholds by leaving them to be fixed periodically by Government, stipulated in the Gazette. As announced in the Portfolio Committee on Finance, these advances are currently fixed at $190 a day for foreign travel and R173 for domestic travel to the extent that the advance covers meals and incidental subsistence, and R53 domestically for advances covering only subsistence.

The taxation of diplomats had also become an issue over the last few years. As a matter of legal interpretation and administration, Sars correctly applied the law by asserting that all foreign allowances received by diplomats were subject to tax. However, full debate on this matter reveals that the law itself needed change.

No policy reason exists for taxing diplomats on foreign-related allowances. It is well recognised internationally that diplomats fall within their own sui generis category of taxation, given the unique demands of their tasks. The Revenue Laws Amendment Bill accordingly exempts these foreign-related allowances. Our diplomats can now operate free from tax at their foreign posts, as originally intended.

In conclusion, I would like to thank everyone involved in the preparation of this Bill, including members within the SA Revenue Service, the National Treasury’s Tax Policy Unit, Parliamentary members within the Portfolio Committee on Finance and interested parties commenting constructively on the Bill. Once again, the open and transparent nature of the deliberation process only serves to improve the overall quality of tax legislation.

I have pleasure, therefore, in tabling the Revenue Laws Amendment Bill,

[Applause.]

Bill referred to the Portfolio Committee on Finance for consideration and report.

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON LABOUR - VISIT TO CONSANI ENGINEERING