THURSDAY, 15 MAY 2003 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY
                                ____

The House met at 14:04

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 000.

                          NOTICE OF MOTION

Ms C DUDLEY: Madam Speaker, I shall move on behalf of the ACDP:

That the House debates the new draft Bill on religion in education in public and private schools and the prominent role of the Minister of Education in prescribing inflexible guidelines for governing bodies to implement, including religious ethos in schools.

                      INTERNATIONAL FAMILY DAY

                        (Member's Statement)

Mr E SALOOJEE (ANC): Today is International Family Day. The family is the basic unit in society which must be supported, protected and strengthened. Different societies and social systems have different forms of family structures. Families as basic units of society should reflect a society which upholds and defends human rights, especially the rights of women and the girl child. This means, among other things, that marriage must be entered into with free consent of the intending spouses, and husband and wife should be equal partners.

As we celebrate International Family Day, we must tirelessly work for formulation and implementation of social and economic policies that are designed, amongst other things, to meet the needs of families - especially the poor and needy, the disadvantaged and the vulnerable - and we must pay attention to children and the girl child. We must create opportunities for family members to understand and meet their social responsibilities, and we must promote tolerance and co-operation. We must pursue these tasks as part of the overall challenge of transforming South Africa into a truly nonracial, nonsexist and democratic country. [Applause.]

         INFRINGEMENT OF AUTONOMY OF SCHOOL GOVERNING BODIES

                        (Member's Statement)

Mr W P DOMAN (DA): Thank you, Madam Speaker. The Department of Education’s plan to outlaw additional remuneration and perks by school governing bodies for teachers who are excellent and hard to replace is extremely short- sighted and seriously infringes on the autonomy of these bodies. It will lead to an exodus of the best teachers from the public school system either to private schools, overseas or out of the profession altogether. They will be replaced at former Model C schools by the next best qualified teachers, stripping poorer schools of their best ones. Everyone loses.

Die enigste volhoubare manier om ongelykhede tussen die voormalige model C- skole en armer skole te verminder, is om toestande vir sowel leerders as onderwysers by laasgenoemdes te verbeter. Minister Asmal het ‘n tekort aan onderwysers, veral in sleutelvakke soos Wiskunde en Wetenskap, as ‘n groot uitdaging in sy departement geïdentifiseer en onder meer vroeër vanjaar senior onderwysposte geskep. Die DA het herhaaldelik betoog dat onderwysers met skaars vaardighede deeglik vergoed moet word. Skoolbeheerliggame wat hul eie geld insamel om uitstekende en feitlik onvervangbare onderwysers te behou, gee die regering die kans om die klem te plaas op skole wat nie hul eie geld kan insamel nie.

AGB LEDE: Hoor, hoor! [Applous.] (Translation of Afrikaans member’s statement follows.)

[The only sustainable manner in which to reduce the disparities between former Model C schools and poorer schools, is to improve conditions for the learners, as well as the teachers, at the poorer schools. Minister Asmal identified a shortage of teachers, especially in key subjects such as maths and science, as a major challenge in his department and, inter alia, earlier this year he created posts for senior teachers. The DA has repeatedly argued that teachers with scarce skills should be properly rewarded. School governing bodies that generate their own income in order to retain excellent and practically irreplaceable teachers provide the Government with the opportunity to place the emphasis on schools that cannot generate their own income.

HON MEMBERS: Hear, hear! [Applause.]]

  GRANTING TAIWAN WHO MEMBERSHIP FOR ITS CONTRIBUTION AGAINST SARS

                        (Member's Statement)

Dr R RABINOWITZ (IFP): Madam Speaker, in her budget debate the hon Minister of Health referred to the importance of international co-operation in fighting disease that affects every member of our global village. The Sars virus does so. The virus has affected both human health and economies, particularly in the East. But the government and people of Taiwan are trying every possible avenue to address this situation, although Taiwan is not accepted as a member of the World Health Organisation, or WHO. Its people have been given extensive invaluable information on the disease. Disease detection techniques have been used in education and films produced and shown to the public. Taiwan’s government is also working closely with international health agencies by providing them with regular progress reports, etc.

Taiwan has had 23 suspected Sars infection cases but no deaths have occurred, compared to other East Asian countries in which the death toll is mounting into thousands. China, where the infection originated, suppressed information on its Sars status to the international community to the disadvantage of its own people. Therefore, it could be seen that Taiwan is providing a very valuable influence and guide to the people of the East. It is strange that our Government has not lobbied more persistently for Taiwan to become recognised, if not as a WHO member, then at least for observer status - in spite of the WHO’s commitment to the right to health of every individual on the globe.

Many friendly governments, WHO officials and other health organisations are expressing the urgent need for Taiwan to become at least an observer member of the WHO. We would like to appeal to our hon Minister of Health and the hon Minister of Foreign Affairs to make an effort and to make their voices heard in trying to gain status for Taiwan in the WHO.

        CO-OPERATION BETWEEN THE UK AND RSA REGARDING AFRICA

                        (Member's Statement)

Mr D J SITHOLE (ANC): The British Foreign Secretary, Mr Jack Straw, is on an official visit to South Africa. The aim of this official visit is to consolidate relations between South Africa and the United Kingdom. He held bilateral discussions with the hon Minister of Foreign Affairs on 13 and 14 May 2003. The two Ministers discussed peace and security initiatives in the Great Lakes region, Nepad, the African Union, the relationship between Africa and the G8 countries, the post-war reconstruction of Iraq, and Zimbabwe. In this meeting, Mr Jack Straw reiterated the commitment of the UK in supporting South Africa’s democratic transformation, Nepad, the African Union and South Africa’s role in building peace and stability on the African continent.

The outcome of this bilateral meeting indicates the importance of solidarity and co-operation between the countries of the North and the South in fighting poverty and underdevelopment. The ANC and the people of South Africa welcome Mr Jack Straw to our country. We hope that his visit will contribute positively in our endeavour to build a just, democratic, nonracial and prosperous South Africa. [Applause.]

         CONGRATULATIONS TO CAPE FORUM ON IRISH INVESTMENTS

                        (Member's Statement)

Dr R T RHODA (New NP): Madam Speaker, the New NP wants to congratulate the Cape Forum on securing the latest series of investments by property developers from Ireland. The investments must be seen as a vote of confidence in Cape Town as a major international tourist destination, adding the Irish to an already long list of foreign tourists coming to Cape Town. As Irish tourists are regarded as some of the biggest spenders from Europe, the city can prepare itself for an even bigger cash injection into the local trade.

Foreign investments such as this one will contribute towards the revitalisation of the central business district. Such investments must be seen as an acknowledgement of the stable environment created by the New NP- ANC council. The fact that more than R5 billion has been invested in the CBD during the past three years is a definite sign that more and more foreign investors regard the Western Cape as a safe haven for their money. The New NP wishes these latest investors every success with their new venture. [Applause.]

The SPEAKER: Order! Hon members, I would ask you not to distribute ``gifts’’ in the House. Permission … [Interjections.] I am sorry, but there are procedures for this which were not carried out. You do not distribute gifts outside the National Assembly Chamber. Now, it has happened; that is fine. But please, members are now walking in in large numbers and distributing them. Please, will you desist. Service officers, will you please prevent this from happening? Thank you.

           VISIBLE POLICING NEEDED TO ENFORCE ROAD SAFETY

                        (Member's Statement)

Mr J T MASEKA (UDM): Madam Speaker, over the past months South Africans have been shocked by a quick succession of gruesome road accidents. The tragic loss of life was not limited to the Saulspoort Dam disaster only. We extend our sympathies to the family members and friends of the people who passed away.

We realise that what these people expect from this Parliament is more than its sympathy. They expect concrete action to reduce the staggering 20 000 deaths that occur annually on South African roads. This string of accidents has also illustrated that the focus of road safety programmes on public holidays only is not a viable strategy. The involvement of vehicles of mass transportation such as taxis, buses and even trucks in many of these accidents has conspired to aggravate the number of deaths and injuries. Last December alone 141 taxis were involved in accidents which claimed the lives of 186 passengers and drivers.

It is therefore vital that the rules of the road pertaining specifically to these vehicles be most stringently policed. The 100 km/h speed limit as well as the roadworthiness of these vehicles must become core elements in a more active traffic policing strategy. Low-intensity efforts, such as unmanned speed traps, will not stop the carnage. We need more traffic officers on our roads who actively promote and enforce road safety.

                 TOURISM 2003 INDABA HELD IN DURBAN

                        (Member's Statement)

Ms G L MAHLANGU-NKABINDE (ANC): Madam Speaker, as South Africa heads towards celebrating a decade of democracy, we can indeed be very proud of the level of transformation we have achieved in different sectors of our society, including the tourism industry.

The Tourism 2003 Indaba, which was recently held in Durban, was a reflection of the remarkable commitment by the country’s tourism operators, in partnership with Government, to ensure that South Africa’s tourism continues to go from strength to strength and that partnerships are forged within the continent and beyond, making the vision of Nepad a reality. South Africa is currently the world’s best performing tourist destination and the indaba has once again proved to the world that we do indeed offer a unique South African tourism experience. This commitment has seen a total of 274 SMMEs exhibiting at this year’s indaba - remarkable growth when compared to 34 just three years ago.

The official opening of the indaba by our President Thabo Mbeki is further proof that Government recognises the vital role played by tourism in the country’s economy and its contribution to the growth of the GDP and the creation of much-needed jobs. We congratulate all nine of our provinces on their participation in the Indaba and to the Limpopo province, for their outstanding performance, we say: Vho shuma zwihulwanesa. Vho tana zwa khwinesa kha vhathu vha Limpopo. Vho dzhia liga lihulwanesa, sa zwenezwo, shango lothe li a vha fhululedza. [U vhanda zwanda.] [They have worked very hard. They exhibited the best amongst the Limpopo people. They took a huge step; therefore, the whole country applauds them. [Applause.]]

                   BUS ACCIDENT AT SAULSPOORT DAM

                        (Member's Statement)

Dr C P MULDER (VF): Mev die Speaker, op 1 Mei vanjaar is Suid-Afrika geruk deur die busongeluk by die Saulspoortdam in die Oos Vrystaat. ‘n Bus met 61 passasiers beland in die dam met tragiese gevolge. Slegs 10 passasiers word gered, maar 51 mense sterf ‘n wrede dood, vasgevang in ‘n bus onder die water. Dis egter nie die eerste keer dat dit in Suid-Afrika gebeur nie. Op ‘n herfsdag, 27 Maart 1985, beland ‘n skoolbus in Johannesburg op soorgelyke wyse in die Westdenedam en 42 skoolkinders sterf ‘n wrede dood, vasgekeer in ‘n bus onder die water.

‘n Mens kan vra hoe dit moontlik is dat so iets 17 jaar later weer kan gebeur. Die skokkende werklikheid is dat busse in Suid-Afrika nie nooduitgange het nie. En tog ry elke bus met ‘n groot plakker op sy agterruit wat sê: ``Nooduitgang/Emergency Exit’’. Tydens ‘n ondersoek op ‘n paar toetsterreine word dit duidelik dat ja, elke bus is verplig om ‘n plakker op te hê, maar dit is waar dit eindig. Dit is nie die taak van die toetsbeamptes om vas te stel of daar wel ‘n nooduitgang bestaan nie, solank daar net ‘n plakker op is. Anders as wat ons almal dink en glo, is daardie groot agtervensters nie werklik nooduitgange nie en daar is geen manier hoe mense wat in so ‘n bus vasgekeer is daardeur sal kan ontsnap nie.

Die VF wil daarom as ‘n saak van uiterste dringendheid ‘n beroep op die Minister van Vervoer doen om dadelik iets hieraan te doen. Hoe lank moet ons nog voortgaan om mense onder sulke gevaarlike omstandighede te vervoer in Suid-Afrika? (Translation of Afrikaans member’s statement follows.)

[Dr C P MULDER (FF): Madam Speaker, on 1 May this year South Africa was rocked by the bus accident at the Saulspoort Dam in the eastern Free State. A bus with 61 passengers ended up in the dam, with tragic consequences. Only 10 passengers were saved, but 51 people died a cruel death, trapped in a bus underwater. However, it was not the first time that this had happened in South Africa. On an autumn day, 27 March 1985, a school bus in Johannesburg ended up in the Westdene Dam in a similar manner and 42 schoolchildren died a cruel death, trapped in a bus underwater.

One can ask how it is possible that something like that could happen again 17 years later. The shocking reality is that buses in South Africa do not have emergency exits. And yet every bus has a large sticker on its back window that reads:

``Nooduitgang/Emergency Exit’’. During an investigation at a few testing stations it became clear that every bus has to have a sticker on it, but that is where it ends. It is not the job of the testing officer to determine whether an emergency exit exists, as long as a sticker is affixed. Unlike what we all think and believe, those big back windows are not really emergency exits and there is no way that people who are trapped in such a bus would be able to escape through them.

The FF therefore, as a matter of extreme urgency, wants to appeal to the Minister of Transport to do something about this matter immediately. How much longer must we continue to transport people under such dangerous conditions in South Africa?]

                      POOR CONDITION OF SCHOOLS

                        (Member's Statement)

Dr M S MOGOBA (PAC): Madam Speaker, a recent visit to schools in the Nebo and Groblersdal area has revealed that these schools are sadly neglected. Two schools have had their roofs ripped off by a storm, one of them two years ago. Somehow these schools are still without roofs and one wonders why it is so difficult to replace these roofs so that children can use the classrooms again.

Many schools also had the problem of a shortage of textbooks. The Minister had assured us that this year would be different from past years and that textbooks would be available when schools reopened in January. Some schools had not yet received textbooks and stationery by April.

Some schools had no water on the premises. Schoolchildren carry a provision of water from home - there is no washing water and no waterborne sewerage.

Two schools needed a scraper to level the fields and were prepared to pay for the diesel, but they were sent from one department to another without any help. This situation calls for urgent intervention by the Government.

                   BUS ACCIDENT AT SAULSPOORT DAM

                        (Member's Statement)

Prof B TUROK (ANC): Madam Speaker, I also want to refer to the bus accident in the Free State on May Day, which resulted in the deaths of 51 workers and which was a terrible tragedy. The fact that there has been more than one statement on this issue today indicates that the House is very concerned about that event.

We would like to reiterate our deep sense of sorrow and solidarity with the bereaved families, with the community of Galeshewe and with the comrades and colleagues of the deceased in SAMWU and Cosatu. This was one of the worst-ever road accidents in our country’s history. It once more underlines the importance of persistently addressing questions of safety with regard to public transport.

We believe that over the past few years we have made progress, working together with the bus industry. A maximum bus speed of 100 km/h has been introduced, and standards and norms for bus drivers’ working conditions have been agreed upon and implemented, at least by reputable bus companies. Clearly, where the safety of the public is concerned, we can never become complacent.

The ANC Government has promised a comprehensive investigation into this accident. The acting Minister of Transport, the hon Jeff Radebe, has also promised improved road signage, especially on secondary roads. Further steps to prevent road carnage of this magnitude will be dictated partly by the outcomes and recommendations of this investigation.

We commend the ANC Government for acting speedily by announcing an investigation into this accident and further announcing some measures to prevent accidents of this nature from happening. The ANC lowers its banner in honour of the workers and the people’s heroes that lost their lives in this accident. I thank you.

                  VIOLENT CRIME IN THE RURAL AREAS

                        (Member's Statement)

Adv P S SWART (DA): Mev die Speaker, Suid-Afrika se landelike gemeenskappe lewe in vrees. Hulle word elke dag beroof, verkrag, aangerand en vermoor. Terwyl hierdie vlaag van geweld voortduur, speel die regering politiek. Selfs die toename in mannekrag of die implementering van sektorpolisiëring bied geen hoop nie. Die nuwe polisielede is grootliks geoormerk vir ontplooiing in stedelike gebiede en sal bitter min verskil maak aan die situasie in landelike gebiede.

Die kommando-eenhede is ‘n teiken in hierdie politieke spel en dit moet nou end kry. Die DA is op rekord met ‘n pleidooi vir die versterking van die kommando’s met mannekrag en groter finansiële ondersteuning. (Translation of Afrikaans member’s statement follows.)

[Adv P S SWART (DA): Madam Speaker, South Africa’s rural communities are living in fear. They are robbed, raped, assaulted and murdered every day. While this wave of violence continues, the Government is playing politics. Even the increase in manpower or the implementation of sector policing does not offer any hope. The new police members are primarily earmarked for deployment in urban areas and will make very little difference to the situation in rural areas.

The commando units are a target in this political game and this must stop now. The DA has on record an appeal for the reinforcement of the commandos with manpower and greater financial support.]

But the confusion is back. Will the commandos be phased out, will they be restructured - apparently the President’s latest sentiment - and how will they be empowered in the interim period, whatever the final product?

We need clarity, not political games by the President, nor opportunistic ploys by the leader of the New NP, who in essence calls for the status quo with some empowerment. The ANC must bring clarity and state their policy decision clearly to enable serious political discussion to continue. Stop this game-playing while our people are being murdered. [Interjections.]

                      VIOLENCE IN THE WORKPLACE

                        (Member's Statement)

Prince N E ZULU (IFP): Madam Speaker, the CCMA journal of March 2003 discusses workplace violence as an international phenomenon that gives expression in physical assault, homicide, verbal abuse, bullying and sexual harassment, to mention a few. Such suffering and its aftermath is endured not only by those physically involved but even by those who share the environment.

Physical violence in the workplace is one side of the coin, while psychological violence in the workplace is experienced as a consequence of strike action. Although legal strikes are preceded by a vote count, not all workers who vote for a strike do so because they are voluntarily in favour of such strike, for various personal reasons, such as: staying away from one’s workplace; being in rowdy mob situations; staying under police surveillance every step of the way; living under the threat of being with or without pay; and shouting slogans and pacing the streets and pavements. All of these actions haunt the mind and suffocate one’s sense of dignity and self-respect. One’s psyche becomes impaired and disoriented.

For the first few weeks after the strike, relations with management become strained. Performance and work efficiency decrease and production levels fall below the mark. Psychological violence in the workplace is as evil as physical violence in the workplace and situations leading to strike actions must be avoided by both workers and management. There is no better choice for production and the economy.

                MRS J BALOYI'S ACADEMIC ACHIEVEMENTS

                        (Member's Statement)

Manana T L P NWAMITWA-SHILUBANA (ANC): Manana Xipikara, manana Johannah Baloyi u kumile xidlodlo xa ku digiri ya BA ya Communication Science na Unisa hi 13 Mudyaxihi 2003. U vile mutirhi wa le kaya(domestic worker) malembe yo ringana 14 naswona u seketeriwe ngopfu hi vatholi va yena va nga Mary na Bek Murray ku yisa tidyondzo ta yena emahlweni. Xitori xa manana Johannah Baloyi xa ku humelela ka yena i xikombiso xa ku pfuleka ka tinyangwa eka vanhu hinkwavo eka xiphemu xo sungula xa ntshunxeko.

Mfumo lowu wa ANC wu swi kotile ku hundzuluxa timhaka ta dyondzo ku endla leswaku vanhu lava nga pfumala nkateko wo dyondza va thlela va amukeriwa ku yisa tidyondzo ta vona emahlweni ku antswisa swa vutomi bya vona. Vanhu hinkwavo va Afrika Dzonga va hoyozela manana Baloyi eka mihandzu ya yena ya ku tiyisela na ku tinyiketa ku humelela. Lowu i nkhuvu wo hoyozela xiphemu xo sungula xa ntshunxeko lexi nga simeka masungulo yo tiya ya ku lwa na xihlawuhlawu.

Vanhu va Afrika Dzonga va fanele hi moya wu ri wun’we ku lwa na swivangelo hinkwaswo leswi tisaka vusweti hikuva se hi nghenerile xiphemu xa vumbirhi xa ntshunxeko. Hi navela nakambe vathori va yena Mary na Bek Murray lava nga n’wi seketela va thlela va khuthaza vathori van’wana ku landzelela kumbe ku encisela mintirho leyinene leyi endliweke hi va ka Murray leswaku va seketele vathoriwa va vona ku antswisa vutshila na dyondzo.

Hi thlela hi khuthaza vathoriwa hinkwavo ku landzelela ku chivirika na ku tiyisela ka manana Johannah Baloyi ku antswisa vutomi bya yena hi moya wa Vukuzezele. Inkomu. (Translation of Tsonga speech follows.)

[Mrs T L P NWAMITWA-SHILUBANA (ANC): Madam Speaker, Mrs Johanna Baloyi was awarded a BA degree in Communications by Unisa on 13 May 2003. She was a domestic worker for about 14 years and received encouragement from her employers, Mary and Bek Murray, to further her studies. The story of Mrs Johanna Baloyi’s achievements is a clear indication that the doors of learning have now been opened to all our people in the first decade of our democracy.

The ANC Government has managed to transform education so that people who were denied education opportunties in the past would have the opportunity to further their studies and improve their quality of life. All South Africans congratulate Mrs Baloyi on her achievement, which is the reward for her hard work. As has already been said, these achievements illustrate what has been done to eradicate the system of apartheid.

All South Africans should join hands to uproot all the causes of poverty as we move closer to the second decade of freedom. We also wish Mrs Baloyi’s employers, Mary and Bek Murray, who supported her in her studies, everything of the best and invite other employers to follow in the footsteps of the Murrays.

We also encourage all employees to learn from what Mrs Johanna Baloyi has done so that they can improve their quality of life through the spirit of Vukuzenzele! Thank you.]

                 A NEW CONSTABULARY FOR SOUTH AFRICA

                        (Member's Statement)

Mnr J SCHIPPERS (Nuwe NP): Mevrou die Speaker, na aanleiding van die President se aankondiging in sy openingsrede dat aandag geskenk gaan word aan die uitfasering van die kommandostelsel en die skep van ‘n nuwe stelsel, is groot kommer uitgespreek dat ‘n sekuriteitsvakuum in landelike gebiede voorkom moet word. Ná omvattende navorsing en beraadslaging, het die Nuwe NP ‘n beleidsvoorstel saamgestel en voorgelê aan die Minister van Veiligheid en Sekuriteit, asook aan die Minister van Verdediging. Die Nuwe NP het ook die kundigheid van ‘n prominente lid van die SANW, Generaal John del Monte, gebruik om die beleid saam te stel.

Gesien in die lig van die groot aantal plaasmoorde, spreek die Nuwe NP se voorstel van ‘n konstabelary die behoefte aan vir ‘n doeltreffende landelike veiligheidsplan. Die Nuwe NP glo dat die skep van ‘n Suid- Afrikaanse konstabelary ‘n logiese, effektiewe en bekostigbare antwoord is as alternatief vir die huidige kommandostelsel. Alle Suid Afrikaanse konstabelary-eenhede en sekere ander eenhede sal toegerus en opgelei word vir beskermingswerk vir afgeleë gebiede in oorlogstyd. Die Nuwe NP hoop dat sy beleidsvoorstel ook sal bydra tot ‘n konstruktiewe debat met die Regering, asook die transformasie van die kommandostelsel. [Applous.] (Translation of Afrikaans member’s statement follows.)

[Mr J SCHIPPERS (New NP): Madam Speaker, as a result of the announcement by the President in his opening address that attention must be given to phasing out the commando system and the development of a new system, great concern was expressed that a security vacuum arising in the rural areas must be prevented. The New NP compiled a policy proposal after comprehensive research and deliberation and submitted it to the Minister for Safety and Security as well as the Minister of Defence. The New NP utilised the expertise of a prominent member of the SANDF, General John del Monte, to draft the policy.

Viewed in the light of the large numbers of farm murders, the suggestion by the New NP for a constabulary addresses the need for an effective rural security plan. The New NP believes that the establishment of a South African constabulary is a logical, effective and affordable answer as an alternative to the current commando system. All South African constabulary units and certain other units will be equipped and trained for protection work in remote areas during wartime. The New NP hopes that the policy proposal will also contribute to a constructive debate with the Government, as well as the transformation of the commando system. [Applause.]]

                     UTILISING BLACK TOUR GUIDES

                        (Minister's Response)

The MINISTER OF ENVIRONMENTAL AFFAIRS AND TOURISM: Madam Speaker, in the statement by the hon Gwen Mahlangu, especially the part in Venda, her pronounciation was excellent for those of you who … [Laughter.]

I want to say that we need to emphasise the point that has been made. In spite of the massive growth in tourism, we still have a situation where most tour operators tend to use white tour guides. Now, the provinces, over the past year or so, have gone out of their way to train, to register and to accredit black tour guides, but we still find that most tour operators are not using black tour guides.

Not only is it wrong, but it is also bad for their business, because when visitors come from other parts of the world they want to be given the full flavour of what this country has to offer and that can only be given if we use these tour guides and the richness of South African society in all of its diversity.

I would like to make a special appeal to tour operators that they should do this. If they do not, then we are going to take a leaf out of the book of the Minister of Minerals and Energy and establish a quota, and she is already making a suggestion of a percentage of tour guides that we can suggest. We find that 25% is too low for us as far as tour guides are concerned.

I hope that the Minister will assist me in doing in the tour guiding industry what she has done with the gentlemen out there as well. The SPEAKER: Are there any other Ministers who wish to respond - but not add - to members’ statements? [Laughter.]

               INTERNATIONAL CANDLELIGHT MEMORIAL DAY

                           (Announcement)

There being none, before we proceed with the Order Paper I wish to draw members’ attention to the fact that the Deputy President and members lit candles earlier today in the foyer of the National Assembly. This was in recognition of International Aids Candlelight Memorial Day, which falls on Sunday, 18 May, when we honour the memory of those lost to Aids and we show support for those living with HIV/Aids. The occasion also serves to mobilise communities in the fight against HIV/Aids. As public representatives we are required to be part of events and campaigns such as this. I want to urge all members, therefore, to light a candle in your constituency or wherever you are on Sunday 18 May as part of what is now a global campaign. I believe it is the largest campaign at grass-roots level against Aids.

    EXCHANGE CONTROL AMNESTY AND AMENDMENT OF TAXATION LAWS BILL

                           (Introduction)

The MINISTER OF FINANCE: Thank you, Madam Speaker. Hon members, it gives me great pleasure to introduce the Exchange Control Amnesty and Amendment of Taxation Laws Bill. The Bill has benefited immensely from the extensive deliberations by the Portfolio Committee on Finance and I’d like to thank Barbara Hogan for her able stewardship of this process.

It is heartening to realise that in terms of the tax policy design, efforts by the portfolio committee continue to add transparency to deliberations that have reached a level of maturity envied by many other jurisdictions.

Government attaches great value to the contributions of the public, further enriching the Bill. Moreover, we believe that this Bill sets the scene for an exciting period in which many South Africans are invited to, firstly, take this opportunity amidst an unfavourable international economic climate, putting their trust and their funds into this economy; secondly, divulge their contravention of exchange control regulations and certain tax Acts, thereby regularising their affairs in respect of foreign-held assets; thirdly, disclose their foreign assets amidst Government’s efforts to facilitate the repatriation thereof; and fourthly, extend the tax base by disclosing previously unreported foreign assets.

Despite the existence of exchange controls, many South African individuals and entities have a long history of shifting assets offshore illegally in a variety of ways. The foreign income from these assets typically goes unreported in terms of certain tax Acts. Government has rightly taken the position that contraventions of exchange control regulations and tax should not be tolerated. However, in recent years it has become apparent that many individuals and entities wish to repatriate their foreign-held assets voluntarily and regularise their affairs due to greater international co- operation in tax compliance efforts and enhanced surveillance of international capital flows. Furthermore, the recent promulgation of the Financial Intelligence Centre Act has further increased the risk of holding illegal foreign assets.

Internationally, the legal and economic environment has also become less favourable for illegally held foreign assets. Since 1994 Government has greatly expanded its tax treaty network, thereby facilitating greater international information exchange. The world community is increasingly intolerant of tax haven countries and has reinforced measures to combat illegal money-laundering. Finally, the current state of the world economy indicates that the growth prospects of foreign earnings are less attractive in comparison to earning opportunities of onshore investments.

The exchange control amnesty Bill contains provisions that allow South African residents to disclose their foreign assets held in contravention of exchange control regulations and certain tax Acts. Disclosure will allow residents to exonerate and regularise their exchange control and income tax affairs at minimal cost. The amnesty procedures are as follows. Firstly, any South African resident natural person, including the deceased estate of a person, a close corporation or trust, may apply for amnesty relief. Secondly, amnesty applicants may apply from 1 June this year through to 30 November this year. Thirdly, the exchange control amnesty will only apply to individuals and entities that voluntarily come forward; those who are already under investigation by the authorities involving their foreign assets are precluded from the amnesty process. Fourthly, the application must be filed in the form of an affidavit or solemn declaration and, most importantly, the applicant must also affirm that the foreign assets disclosed do not stem from any unlawful activity, except exchange control and tax law violations or any associated misrepresentation or nondisclosure in respect of these violations. Individuals or entities engaged in criminal activities such as drug smuggling, money-laundering and terrorism do not fall within this amnesty.

The exchange control amnesty will apply only to disclosed foreign assets, while nondisclosed assets remain fully subject to potential civil and criminal prosecution. The disclosure of a foreign asset requires a statement of that asset’s market value as of 28 February this year and a full description of identifying characteristics. The amnesty for disclosed foreign assets attracts an amnesty levy of 5% of the fair market value of the repatriated foreign assets. A 10% levy will apply to the stated 28 February 2003 market value of nonrepatriated assets, minus a R750 000 exchange control permissible foreign investment allowance. In respect of exchange control, finally, the amnesty levy must be paid from assets within three months.

In respect of tax relief for the nondisclosure of foreign earnings, the following procedure applies. Firstly, individuals and closely held entities who fail to disclose foreign receipts and accruals arising in the taxable year ending on or before 28 February 2002 may separately apply for amnesty relief in this regard even if those applicants did not simultaneously violate exchange control regulations. Secondly, the related tax amnesty relief for failure to disclose receipts and accruals of foreign assets will only be granted if there is full disclosure of the receipts and accruals of that foreign asset arising after the 28 February 2002 cutoff date. Thirdly, successful applicants are not liable for any income tax payment or any associated criminal offence with respect to disclosed foreign assets.

In respect of tax relief for the nondisclosure of domestic funds transferred offshore, firstly, this amnesty will also cover domestic tax transgressions, but only to the extent that these transgressions are related to foreign assets. Secondly, applicants must also disclose the amount and date of foreign assets shifted offshore. The amnesty for a domestic tax violation comes at the price of a domestic amnesty levy of 2% of undisclosed amounts. Thirdly, with a view to protecting tax morality in respect of compliant taxpayers, the domestic tax amnesty will not cover other tax violations such as VAT, PAYE, the skills levy, Unemployment Insurance Fund and the Regional Services Council levy. These taxes have been excluded from the amnesty because violations of this kind typically involve serious fiduciary violations such as the wrongful use of Pay As You Earn from employee salaries and wages.

The amnesty does not generally apply to advisers and facilitators that merely assisted applicants in violating exchange control regulations and related tax Acts. However, concerns were expressed during the hearings that advisers and facilitators need some level of protection. It was contended that advisers and facilitators may attempt to dissuade applicants from coming forward out of fear that an applicant’s request for amnesty will lead to the prosecution of these advisers and facilitators. On the basis of further careful consideration by Government, the Bill was revised to provide coverage for advisers and facilitators by limiting the investigating powers of both the SA Revenue Service and the Reserve Bank. The amnesty unit, Sars and the Reserve Bank therefore cannot force an amnesty applicant to disclose the identity of any party that assisted in a violation. In addition, the amnesty unit will erase all names of parties inadvertently revealed by the applicant on an application form.

With this level of protection, no reason exists to generally extend the amnesty for advisers and facilitators as no names will be requested and no names should be revealed. However, the only extension of amnesty involves a limited class of facilitators, which are parties who physically assisted the violations - the ``schnorrers’’, those who carried the money out. These facilitators include individuals such as trustees and employees, wholly owned companies and trusts that illegally held or accumulated foreign assets on the applicant’s behalf. These related parties need an extra level of protection because the SA Revenue Service and the Reserve Bank will automatically have an investigation trail to these related parties once the applicant discloses the need for amnesty.

Such facilitators may apply for relief by adding their names to an applicant’s application for amnesty. In other words, a facilitator may only come forward if the related applicant files an amnesty application.

The Bill will require the establishment of an independent amnesty unit for processing the applications. An independent chairperson will be appointed shortly and the unit will contain personnel from both the Reserve Bank and the SA Revenue Service. The unit will terminate after processing all successful applications and after all unsuccessful applicants have exhausted their appeals. The draft legislation also provides for the issuance of speedy guidance through regulations that address unintended consequences. The amnesty unit can only make successful applications available to the SA Revenue Service and the Reserve Bank so that applicants receive the desired amnesty protection.

Both the Reserve Bank and the SA Revenue Service must provide information about the amnesty to the Minister of Finance so that the Minister can fully report on the progress of the amnesty to Parliament. This information will ensure that the amnesty is conducted in a transparent and accountable way. The Bill also contains a provision expediting and regulating the efficient exchange of information flows between the Reserve Bank and the SA Revenue Service. These measures will promote future enhanced enforcement of exchange control and taxation laws in terms of foreign assets, providing yet another reason for South Africans to grab the opportunities provided by this amnesty.

In addition, the Exchange Control Amnesty and Amendment of Taxation Laws Bill contains miscellaneous amendments to certain tax Acts as announced in the 2003 Budget Review. These adjustments entail personal income tax rates, income brackets and exemption thresholds. The Bill also removes certain duties. These amendments further impose a secondary tax on companies when domestic companies shift their tax residence status offshore, thereby preventing artificial capital outflows.

I have great pleasure in hereby tabling the Exchange Control Amnesty and Amendment of Taxation Laws Bill, 2003. I thank you.

Bill, together with the introductory speech, referred for consideration and report to the Portfolio Commitee on Finance.

                         APPROPRIATION BILL

             Debate on Vote No 31 - Minerals and Energy:

The MINISTER OF MINERALS AND ENERGY: Madam Speaker, hon members, Ministers, guests sitting over there in the public gallery, I want to start by apologising unreservedly for the gifts that were distributed in the Chamber without permission. I appeal to members to please declare those gifts. The year under review was a very significant year for the Department of Minerals and Energy. We made ground-breaking progress. We faced challenges and we also had setbacks. It was a year of great service by the officials of my department and our parastatals also excelled in their fields. Our relations with stakeholders were enhanced through disagreements, engagements and agreements. As the DME, our vision is that of sustainable development and growth through minerals and energy resources for the benefit of all South Africans. This vision is also located within the struggle of pushing back the frontiers of poverty. Our work for the year now ending, which I will present, should be seen in that context.

Let me give members a snap view of our year 2002-03, even if it is only of the highlights. Today, we are wearing these hard hats in order to drive home the message of safety first. I am glad that members are joining us in that campaign. We commissioned a mine health and safety review, which focused on the implementation of the Mine Health and Safety Act of 1996 and subsequent regulations, and on identifying gaps and required actions. The Deputy Minister will elaborate on the outcome of that process.

Our Mining Qualifications Authority, or MQA, enabled young people to study for tertiary qualifications in mining through awarding a total of 135 scholarships mainly to previously disadvantaged persons. As we speak, 29 students have just been offered an opportunity to go and study in France. All of them will be doing postgraduate studies in nuclear-related sciences. All of them are sponsored by Areva, a company which is in partnership with us in the Pebble Bed Modular Reactor programme. [Applause.]

Last year, the President signed the Mineral and Petroleum Resources Development Act of 2002 and the stakeholders also signed the Broad-based Socioeconomic Empowerment Charter. That was a real highlight and a special moment for us. Government, industry, labour, community representatives and junior miners travelled around the world together in order to explain South Africa’s mining reforms. I would like to thank the stakeholders for a sterling job.

We hosted a mining week alongside the Electra Mining exhibition, which enabled stakeholders and all interested parties to engage us in different aspects of our mining industry and the reforms that we are undertaking. During that time, we also launched a beneficiation project which is based at Mintek and is called Kgabane. It trains women in jewellery making. We hosted a successful HIV/Aids mining summit that involved stakeholders. I would like to congratulate our Deputy Minister for his sterling leadership in organising and co-ordinating that conference. [Applause.]

We merged two of our upstream gas and oil assets, Soekor and Mossgas, to form one company, a state oil company called PetroSA. This company is giving us value. We completed a draft White Paper on renewable energy and at the WSSD we were able to commit our country to cleaner energy sources. We are now developing further policies in order for us to take further those decisions that we have taken. We finished the long-awaited integrated energy plan and it has been confirmed scientifically that in South Africa we need to ensure that we use all energy sources optimally: nuclear, coal, gas, oil and renewable energy. We also launched two integrated energy centres in order for us to assist poor households by bringing down the cost of energy. Through these centres we are able to provide information and education to poor households.

We successfully procured strategic stock for the country - using a black economic empowerment company - to the value of US$87 000 million and a total of 3,5 million barrels of crude oil. We trained 61 interns in our department and we were able to provide an opportunity and skills for young people. All of that helped push back the frontiers of poverty. We electrified 338 572 homes, 974 schools and 49 clinics, and 5 321 solar home systems were installed. That is a 3% increase on last year. In this programme, together with Eskom, we continue to perform exceptionally well.

Our PBMR programme has also advanced. We will soon be finishing the phase that we are in. That phase will usher in a new phase, that is the building of the model. A decision by Cabinet will be taken after all of the outstanding information has been presented by us.

Together with interested parties, women in particular, we also worked to launch two institutions aimed at supporting women: the Women in Oil and Energy South Africa, and the South African Women in Mining Association, Sawima. Both of them will be further assisted by us and our director- general will make an announcement on this matter.

We completed a free basic energy policy plan that we also piloted together with Eskom. We are now ready to implement it to a minimum of 500 families in the qualifying areas and it will begin from July 2003. We completed the pilot phase that started in 1999 in the technical support of small-scale miners. We have identified projects that we are now taking forward and which already employ 300 people, 66% of whom are women.

We have established a monitoring team to evaluate the sustainability of the oil deals in liquid fuels and the validity of the BEE groups. That work is ongoing. We embarked on a human resource strategy that cuts across all the areas that we work with, working together with the energy Seta, Chieta and MQA. We also launched a publication called Molato, which provides news and views on Government and the stakeholders about our industry.

We led the Kimberley process, which was aimed at stopping trade in blood diamonds, to its logical conclusion. There is evidence of a decrease in blood diamonds in the market. Sierra Leone, for instance, is a case in point. With the assistance and support of the United Nations we have created an enforceable regime that is binding on the world’s diamond industry and approximately 70 countries, and the list is growing. I would like to thank Abe Chikane, who is the chairman of the Kimberley process. He has done our country proud. We completed the process that will kickstart the restructuring of the EDI. Miss Phindi Nzimande has been appointed as CEO of EDI Holdings and the board has also been appointed. The budget is in place, the plan is in place and so are the time lines. The EDI process is earnestly ready to start with implementation. A forum of foreign investors in mining was also launched. It is a unique body through which we can consult foreign investors. It also confirms a long-term agenda with regard to our country by members of this body.

That has been a snapshot of some of the things that we did in the year under review. For 2002-03, we used 99% of our allocated budget. Of our R1 872 618 we were able to spend, as I have said, 99%. Regarding the MTEF, as we move forward to 2003-04, our funds seem to be decreasing. But, we have to note that the decrease in the department’s allocation is mainly due to the decrease in the provision for the redemption of Necsa loans, which will start in 2004-05. That information is on Programme 5 on the associated bodies page.

In effect, our allocation has increased. This is due to the expansion of the department as a result of the increase in the work that we have to do. The minerals sector, in the year under review, also performed in an interesting way. We were pleasantly surprised to see that the preliminary figures showed that there was a 1,5% rise in employment from 407 154 in 2001 to 413 087 in 2002 - the first recorded increase since 1986.

Earnings in platinum also surpassed gold earnings for the first time in 100 years. Yet, in 2002 gold reclaimed its dominance. Having said that, we also need to highlight the fact that even with the greater value addition that we are beginning to see in the industry, South Africa continues to export a very high proportion of its raw materials. Part of our reforms are aimed at addressing that.

Undoubtedly, a major event in 2002-03 was the signing of the Mineral and Petroleum Resources Development Act by the President, as well as the stakeholders’ signing of the charter. Reforms have taken us over 10 years and they have been driven by the ANC Government through engaging the stakeholders. The last of the legislative processes aimed at advancing our mining reforms will be the legislation on beneficiation. After that, kuyobe kugqitshiwe [everything would have been finalised], because we will have passed a package of legislation aimed at truly transforming our mining industry. We will also appoint an advisory board which will work with the Minister and the department to implement these changes. A shortlist has been provided and it will soon be taken to Cabinet for approval.

I would like to encourage all those who are engaged and interested in mining to start testing the validity of their transactions, especially the new transactions, against the scoreboard. This will enable both of us to start quite early in addressing any of the challenges that their deals may face which may lead to their not being able to fast-track the conversion from the old order rights to new order rights.

We are also introducing a new dispensation for the junior and small-scale miners, as a result of which a directorate for small-scale mining is being established in my department. We also have the mining social plan, which includes specific social plan processes to manage downscaling and retrenchments in the mining industry.

Regarding energy matters, in the coming year we will see a much more intense focus on energy matters. In accordance with the conclusion of the integrated energy plan, the gas industry has a critical role to play in our future energy mix. Gas sales, just with Sasol, are already expanding at approximately 10% to 12% per annum. This House passed the Gas Act to promote the orderly development of the piped gas industry, to establish a national regulatory framework and to establish a National Gas Regulator as the custodian and enforcer of the national regulatory framework.

A gas infrastructure has been developed. It addresses the reserves infrastructure, market and development plans. The plans envisage the following: a national and regional gas transmission network from Namibia to Cape Town and around the coast to Mossel Bay, Coega and Durban; from the West Coast through Sishen to Gauteng; and the existing pipeline from Gauteng to Richards Bay and Durban, as well as the pipeline currently under construction from Mozambique to Secunda. This will complete another grid that will overlay the already well-established grids that we have from Eskom, which we use for transmitting our electricity.

South Africa also remains an energy-intensive economy with a challenge as far as pollution is concerned. Yet, relatively straightforward and low-cost measures on energy efficiency could yield savings in a short space of time. My department has led the way by installing energy-efficient lighting and hopes to roll this out to other departments. It is estimated that my department will save a whopping R97 000 per annum, just by improving the gadgets that we are using in our department. We would like to encourage many of our citizens, both in the private sector and in the domestic environment, to address this issue. South Africa will also see some of the changes in the energy environment arising from the provisions of the energy Bill, and one of the hon members will expatiate on this matter.

Another big energy project in the electricity sector in the coming year, as I indicated earlier on, is going to be EDI - the electricity distribution industry. This industry is worth R30 billion and employs more than 30 000 personnel. It is, therefore, very significant for the country. It should enable us to address the issue of equity so that our people who are poorer do not pay more money, to create universal access by the year 2010, to establish affordability and avoid unreasonable increases, and to encourage growth in the economy.

All the work has been done to demarcate the six new regional electricity distributors, or REDs. These REDs will own the distribution business, part of which currently falls under Eskom. While a progressive rise in energy prices cannot be avoided, South Africa still intends to keep electricity prices low. The Department of Minerals and Energy shares the concern of the Minister of Public Enterprises on the need for the National Electricity Regulator and Eskom always to operate within our macroeconomic framework and to stick to justifiable increases. Therefore, we’ll support the need by Government to review how regulated prices are arrived at. We will also pay attention to maintenance in the coming year in order to ensure that we utilise unemployed people by training them so that they can play a greater role in the maintenance of our energy.

In November last year the Southern African Power Pool was officially opened in Harare. The Southern African Power Pool is an energy market where Southern African utilities trade in electricity. It provides South Africa with a unique opportunity to diversify its energy mix, as some of the power traded is hydro-generated. Progress in energy trading has increased on the short-term energy market, and the managed liberalisation of these markets is being discussed.

We have also become part of the African regulators, and I would like to congratulate our own National Electricity Regulator, who has been elected as the first chairperson of this worthy initiative which advances the interests of Nepad.

Some of the highlights, as far as our parastatals are concerned, include a project and initiative undertaken by Mintek and Harmony Gold. The initiative, called Musuku Beneficiation Systems, is an alliance between Harmony Gold, which took the pioneering step of establishing its own gold refinery in the small Free State town of Virginia in 1997, and Mintek, South Africa’s national minerals research organisation. The partnership combines Harmony Gold’s existing refinery and gold beneficiation business with Mintek’s capabilities in advanced technology, and the design and construction of refining and manufacturing facilities. This deal will also make it possible for a 20% shareholding by an empowerment partner who will soon be announced.

The future of the Central Energy Fund and the Strategic Fuel Fund is under review. Some of the work that was done by the Strategic Fuel Fund has now been undertaken on contract by PetroSA. We will, at an appropriate time, announce the changes as far as this institution is concerned.

The year under review also saw the completion of a 25-year project in which a metallogenic map of the African continent was produced under the auspices of the Commission for the Geological Map of the World. The map is a significant South African offering to the Nepad programme. Our own Council for Geoscience was the one which was responsible for this project. The Council for Geoscience was also proud to be associated with the planned Freedom Park Monument in Pretoria, by undertaking the geological engineering site investigation.

Petroleum Agency South Africa is the designated agent for the Mineral and Petroleum Resources Development Act to promote oil exploration in South Africa. And again, this institution has done a lot of work this year in positioning South Africa and its oil production and reserves.

There has also been a lot of focus on the rural nodes. The department is expediting access to energy among the poorest of the poor. As a result, in the coming year it is planned that up to 51% of our resources on electrification will go to the nodal areas.

PetroSA will be facing changes in the coming year. Last year, it paid a handsome dividend to the Treasury - I’m sorry the Minister has gone - and we are very proud of the work they continue to do. One of the challenges they are going to face next year will deal with having to enter the retail sector.

The same challenge will be facing Sasol. As Government, we will do all that we can to ensure that, whatever choices PetroSA makes in this regard, these will enhance the market and improve the accessibility of liquid fuels to our poor communities.

I have commissioned an evaluation of my department by stakeholders. That study will assist us so as to: assess the quality of the service we deliver; evaluate the impact and affordability of services to the poorest; determine areas of improvement; assess the department’s accessibility and turnaround time; hear the perspective of users and stakeholders; and gauge the values of the Department of Minerals and Energy, including Batho Pele. The outcome of this evaluation will enable us to measure our effectiveness and, therefore, take the appropriate action.

Our co-operation with organised labour reached a very high level. We were awarded a much-valued award by the NUM called Kgau Ya Bahale. By this gesture, the workers expressed their appreciation of our efforts and we are humbled and moved beyond words. [Applause.] For me, the Deputy Minister and the department this award has only pushed the threshold of service delivery even higher.

I would like to thank all our partners, the portfolio committee and their chairperson for their meaningful contribution and dedication, demonstrated beyond doubt during the time of the Mineral and Petroleum Resources Development Bill. I would also like to thank the Deputy Minister and the director-general for their leadership, as well as the members of our boards and chief executive officers. I also want to bid farewell to Dr Frick, who will not be here in the same capacity next year in this Budget Vote, but I hope he will be here anyway.

I would like to ensure hon members of this House that the work that we are doing in pushing back the frontiers of poverty in South Africa is one of the critical ways in which we advance our vision. I would like to believe that pushing back the frontiers of poverty is a shared vision. Our stakeholders are buying into this vision. It is a shared vision beyond the Department of Minerals and Energy. There has to be a continuous creation of this vision in every individual who is part of our organisation so that, like our fallen heroes as epitomised by Tata Walter Sisulu, they will each be self-propelled by this vision. The Rivonia trialists were willing to die for us. And, as has been mentioned, according to Tata Walter Sisulu, they were willing to go to the gallows singing, so that future generations could be inspired. For this, we need to ensure that we work even harder and display much more commitment and courage so that we can truly deliver on the new South Africa that we’ve promised our people. [Applause.]

Mr I O DAVIDSON: Thank you, Mr Chairman. Within the limited time I have available, I want to focus on two issues, which I hope the Minister will respond to in the course of the debate.

The first is the very damning report of the Auditor-General on the SA Diamond Board for the year 2001-02. The report, quite frankly, was a disgrace and one of the worst reports I have ever seen of a department published by the Auditor-General.

Points raised by the Auditor-General include: cash flow problems; accuracy of revenue and debtors; completeness, validity and accuracy of the fixed assets disclosed; accuracy of the value-added tax figure disclosed; irregular expenditure by the CEO; problems regarding income tax deductions from the CEO; problems in respect of the management of the board, in particular internal control and the nonfunctioning of the auditor’s committee; the nonapproval by the board of the Minister’s budget for 2001- 02; pointless expenditure; legal actions, and there was a lot of that; and the suspension of the CEO. Many other points were also raised.

This litany of problems indicated first and foremost that the board was in a mess. And, quite frankly, this is an indictment of the Minister and of that department. Now the Minister is aware of the fact that for some time I have expressed an interest in the activities of the SA Diamond Board and many of the questions I asked centred around the very points raised by the Auditor-General. To many of these questions the Minister’s reply was either inadequate, incomplete or purely evasive.

The Minister will recall that my questions go back to the Taljaard investigation, which reported in May 2000 and which highlighted problems in the board, especially the problems of corporate governance. Certain recommendations were made and it was my information that these recommendations were not carried out. No wonder we are in the mess that we’re in. I communicated this to the Minister, but she refused to believe me.

I am very pleased that the chairman, CEO and diamond evaluator are now gone and that under the new chairman, Mr Abe Chikane, matters have improved, and improved considerably.

It is worth recording that when the SA Diamond Board appeared at my request before a rather supine portfolio committee, many of the problems of the board were blamed by the past CEO on the nature and composition of the board itself, which he claimed was dysfunctional, as result of conflicting agendas and gatekeeping in respect of special interests. This line of reasoning both the Minister and the portfolio committee seemed to accept with alacrity. Of course, the private sector was an easy target to blame. When I asked Mr Abe Chikane on a very recent visit to the portfolio committee whether he also was of this view, his answer was somewhat different and he tended to agree with me that the real root of the problem was, in fact, the CEO and the diamond evaluator.

Now this brings me to the real point which I want to address, namely the accountability of the Minister in circumstances such as this and matters such as the Central Energy Fund debacle.

The Minister has always insisted, and it is evidenced in pieces of legislation that have come before this House, that she has the right to appoint boards, chairpersons and chief executive officers of organisations falling under her auspices, including the SA Diamond Board, the Central Energy Fund and the various regulators.

I want to put it to the Minister that with rights come responsibilities and with responsibilities comes accountability. And you have to accept that. Is it appropriate, when debacles occur such as what happened with the SA Diamond Board and with the Central Energy Fund, that she does not share in that accountability? And I want the Minister to answer that.

Now the second issue that needs to be addressed pertains to reports of an agreement announced on 13 April 2003 between Eskom, Sanco and other unnamed parties with regard to the write-off of R1,4 billion in arrears in certain areas of greater Johannesburg. While the DA is not opposed to general write- offs, where appropriate, it is opposed to selective write-offs as a result of backdoor deals done with certain pressure groups. If there are going to be write-offs, these should be a result of a thorough national debate resulting in a comprehensive policy on debt write-offs and a system of rates that provides free basic services to benefit the poorest of households.

This write-off as announced discriminates beween poor and poor, between poor black consumers in certain areas and poor black consumers in others, between certain poor black consumers and poor coloured, poor Indian and poor white consumers. This is fundamentally unfair, because the problems faced by those who have been the recipients of the write-offs are no different to the problems faced by others who have not received this write- off.

What of the communities of Ivory Park and Diepsloot in Johannesburg? Or Temba and Hammanskraal in Tshwane? And Khayelitsha, Nyanga, Bishop Lavis and Uitsig in Cape Town? All of these areas are directly supplied by Eskom and yet they were not privy to the write-off.

I am aware of the service delivery payment which launched the process, resulting in the write-off. The process, however, seems totally inadequate and the results flawed and not properly thought through. No plan exists for the extension of the write-offs to other parts of the country and certainly no justification is given for focusing on the central region in Gauteng.

Certainly, the plan contravenes the National Electricity Regulator’s own draft policy in respect of write-offs. This document is clear in its adherence to the principle of nondiscrimination. I quote:

When a supplier offers a negotiated price agreement to a customer within a industry/sector, the supplier has to be willing to offer the same to another customer of the same profile.

This has not been done. I also believe that such selective write-offs, based on geography and race and a refusal to offer similiar relief to others, could constitute a fundamental violation of the provisions of equality and procedural fairness in the Constitution, and could render Eskom liable to legal action.

What also intrigues me is that this write-off also directly contravenes Eskom’s own stated policy in respect of write-offs. In fact, they had only set aside R153 million for write-offs, but this write-off is almost 10 times that amount. The DA is neither satisfied with the process leading to the write-offs, nor its selective outcome. The only fair, rational and constitutionally sound write-off policy is one which is pro rata and open to all eligible households supplied by Eskom, regardless of race or geography.

We have interacted with the Minister of Public Enterprises and the Minister should indeed be directly involved in this, because it is, in fact, part of her portfolio. We do not believe Government should be for a select few who shout the loudest. We believe Government should be for all the people. I thank you. [Applause.]

The DEPUTY MINISTER OF MINERALS AND ENERGY: Chairperson, it is appropriate for me, before I say anything, to mention on this particular day we would like to send our heartfelt condolences to the bereaved Sisulu family during this wake period in preparation for the funeral of the late Comrade Walter Sisulu, scheduled for this Saturday.

I would like to take us through the period of our financial year 2002-03, which was a fruitful one for the Department of Minerals and Energy. I know that there are those who oppose everything we say, like the speaker who has just left the podium, but be that as it may, the department intends forging ahead on the right path so as to ensure that our resources are employed fruitfully and responsibly to benefit all South Africa.

In my speech I will dwell on some of the issues touched on by the Minister, but this time elaborately. I will highlight some of the achievements of the past financial year. Fresh in our minds is the successful HIV/Aids mining summit, which we held together with employers in the mining industry and organised labour at Gallagher Estate on 13 April 2003.

The tripartite alliance signed a declaration of intent on the day of the mining summit. Contained therein is the following. It acknowledges that the HIV/Aids epidemic affects society at every level; the HIV/Aids epidemic has far-reaching social and economic implications which have not yet been fully quantified; the HIV/Aids epidemic demands a comprehensive, co-ordinated and united response to be defeated; and poverty eradication plays a significant role in combating HIV/Aids.

The summit accepted the comprehensive strategy developed by Government. The mining sector prides itself on pioneering a role in establishing proactive, comprehensive multistakeholder responses to the management of HIV/Aids. As a way forward, the tripartite and HIV/Aids committee has to co-ordinate and combat HIV/Aids in the mining industry. Time lines were set to ensure that implementation of this declaration of intent takes place. The department has made and continues to come up with some interventions in an effort to combat the disease. Our infected and affected workers and their families enjoy our continuous warm support and care. Those in the department who have to disclose their status are provided with supplements and enjoy regular home visits, hospital visits and referrals by our officials.

I need to take you through mine health and safety. The Mine Health and Safety Inspectorate has completed the following inquiries into a number of major accidents. Firstly, the one at Hartebeesfontein which occurred in 1997; secondly, Mponeng, which occurred in 1999; and thirdly, great Ligwa, which happened in 2002. The inspectorate submits its report on Hartebeesfontein and great Ligwa to the Department of Justice and Constitutional Development. The inspectorate is currently compiling a report on Mponeng for submission to that department. Currently, the inquiry into the Beatrix disaster of 2000 is under way. It will be followed by the 2001 Beatrix disaster.

It is notable that the review of the mining industry and the mining inspectorate was conducted to comply with the Minister’s request for an independent review on mine health and safety to assist the inspectorate in developing an appropriate approach to transformation and service delivery, and to inform the national initiative to integrate the occupational health and safety inspectorate. The review has recommended that the inspectorate consider a number of changes in structure and approach, specifically to establish a policy unit, to increase the number of inspectors in the field, to develop the outlook and expertise of inspectors, and to develop an effective and standardised approach to enforcement and to the tripartite system.

The reviewers observed that the major reason for the overall improvement of the occupational safety results for the mining sector is the contraction of the gold mining sector. The reviewers further concluded that gold and platinum mines, particularly the former, should implement more stringent measures to protect the health and safety of workers, given the high level of risk associated with them.

I would like to touch upon some of the critical issues which form the core of our environment. I will touch firstly on the area of rehabilitation. Rehabilitation of ownerless and derelict asbestos mines has always been a high priority for us. The department has, during the past year, spent almost R17 million on the rehabilitation of derelict and ownerless asbestos mines across the country.

In all these projects public participation programmes have ensured that the communities affected by asbestos pollution are kept informed about the projects. They have been given the opportunity to raise their concerns and also the right information to ensure their safety. On a practical level, the current tender allocations and the structures that we have to ensure that black economic empowerment initiatives are brought on board will ensure that we are able to implement the policy that has been adopted by our Government.

We are currently rehabilitating the following areas. In Limpopo we rehabilitated Voorspoed, which is one of the areas affected by asbestos. We have allocated about R3 million to R6 million for the rehabilitation of this area, because it is affecting the communities in the area. The other area is Koegas, where we have spent R260 000 to ensure that we attend to the rehabilitation of this area. We are also rehabilitating the areas of Ncweng, Gamopedi, and Sardinia mine dumps in various places to ensure that we meet our obligation as the Department of Minerals and Energy in various provinces to ensure that we create a safe environment for our communities.

I would also briefly like to inform you that mine environmental management has identified the following national priorities for us as a department: the strengthening of enforcement in order to prevent mining legacies from happening; the identification of mine pollution hot spots and implementation of additional measures, norms and standards; addressing and managing the pollution problems within those areas; and the rehabilitation of mine legacies of the past.

In order to facilitate the implementation of the three national priorities for the mine environmental management, as a department we have adopted the Phepafatso strategy, which is currently being finalised. This strategy is not only a departmental initiative, but it intends to ensure that there are co-operative Government initiatives which are supported by the mining industry, various parastatals, organisations and other role-players.

I would like to take us through the area of energy. As a department we have made every effort to make the lives of our people better, especially those who are disadvantaged and vulnerable citizens in our country. To be blunt, I need to talk about the African child and woman. The African child has not been able to compete in this hard field of science. To date, access to new scientific technologies has always remained elusive. At tertiary institutions some non-African students take notes during lectures by employing the latest technology available, such as laptops. This cannot be said of the African child. To this end, the Department of Minerals and Energy has consciously decided to help the African child by fast-tracking the processes of ensuring that the African child finds wisdom in enrolling for hardcore science courses at tertiary level. You will also agree with me that the underrepresentation of women in the electricity and nuclear sectors is shocking and cannot be accepted. As the Department of Minerals and Energy we have decided to take the bull by the horns, together with the Minister. This year, on 9 August, we will launch the very first South African chapter of Women in Nuclear, which will then affiliate to the Women in Nuclear internationally, and we will urge kakhulukazi nina bomama [especially you women] to encourage amantombozanyana [young girls] by ensuring that they also participate in this programme and thereby ensure that we are able to have more women demystifying the area of nuclear technologies.

I must say that in the past financial year our department, through the International Atomic Energy Agency, was proud to produce Elsie Monale, the first African woman in our department who has completed the 10-month course in IAEA safeguards training. [Applause.] As if this was not enough, you will be pleased to hear again that we have Ms Mphahlele, who is with the National Nuclear Regulator as a worker and who has won the Amy Biehl Fellowship. She is now in the process of completing her masters in nuclear engineering at the University of Pennsylvania. [Applause.] With the success stories of our women, the impact on the South African chapter of Women in Nuclear, once launched in August, will be felt far and wide. We will live up to the adage that wathintha abafazi wathintha imbokodo [you strike the women, you strike the rock]!

I am thrilled to report that the reorganisation of the Nuclear Energy Corporation of South Africa has been approved. This reorganisation separates Necsa’s commercial activities from its institutional activities. The redress of past imbalances in this institution was accelerated during this period. We are proud to say that 88% of the 171 staff members appointed in vacant positions at Necsa are from the previously disadvantaged groups.

For the first time in the history of this institution a woman was appointed to the executive management. [Applause.] We also need to indicate that the profits from Necsa’s sale of medical radioisotopes rose from R28 million to R40 million this year. Necsa intends growing the isotope business to a turnover of R1 billion over a period of five years. Necsa recently signed a 10-year contract worth R80 million per annum with BOC for the supply of nitrogen trifluoride, which is a crucial purging agent in the IT manufacturing sector.

On nuclear safety, the National Nuclear Regulator, through effective regulatory control, ensured that the dosage to workers is always below the legal limit. The average dosage to workers was below 10% of the limit. In the mines, however, there were concerns about the high doses that workers receive mainly from radon, which occurs naturally underground. In this new financial year we intend completing all regulations required in terms of the National Nuclear Regulator Act. Recognising the need for skills development, the Department of Minerals and Energy, in partnership with DTI, initiated an agreement between the South African sector role-players and a French company called Areva. In terms of this agreement, Areva will provide high-level training to South Africans in the nuclear sector. An initial group of 25 South Africans will be trained in France during this new financial year.

Rest assured, in September last year we concluded the Additional Protocol on Safeguards with the International Atomic Energy Agency. This protocol is aimed at ensuring that nuclear material is not diverted from peaceful uses and applications. Through this protocol the International Atomic Energy Agency can provide credible assurance of the absence of the undeclared nuclear material. We have already met our first obligations in terms of this protocol by submitting South Africa’s expanded declaration on time.

In view of international concerns raised over security issues, the department allocated an additional R5 million towards the improvement of security measures at Necsa. This year we will be focusing on the improvement of security at all our nuclear installations. The department and the International Atomic Energy Agency will host two training courses on nuclear security. One of these courses will be for the countries on the continent that have significant peaceful nuclear activities.

I will touch briefly on small-scale mining. A well-established dogma holds that SMMEs are the ones that absorb and create jobs. In the area of small- scale mining we are proud to have firmly ensured that we have facilitated and encouraged joint ventures between co-operatives and big business, which will assist greatly in transferring much-needed skills to our people in the disadvantaged communities. I refer to the transfer of skills pertaining to ownership such as, for instance, leadership, finance, legal matters, communication and others. They are being sorted out and imparted to our people.

Lastly, I would like to indicate that we as a department are proud to announce the launching of a new joint venture on 30 June of this year. Through our participation over a period of three years, we are going to ensure that the community of Blaauwbosch, near Osizweni, Newcastle, enters into a joint venture with IDC, Corobrik and ourselves. Intuthuko Blaauwbosch Trust is representing the community. This will create jobs for 121 people. We think the spin-offs for the Blaauwbosch community and our broader community will be manifold, once more. Intuthuko will be able to create a company which can take care of the community.

We have begun to work closely with them to cease this informal operation. We are looking at viable and sustainable alternative options that will help them to keep these informal miners. We need to say to ourselves, as we say in Tsonga, inkomu va ka hina [thank my people]. Thank you. [Applause.]

Mr M T GONIWE: Thank you, Chairperson. Madam Minister, Madam Deputy Minister, hon members, director-general, staff of the Department of Minerals and Energy, business leaders, comrades and friends, in response to the hon I O Davidson I want to say that there are none so blind as those who will not see, and none so deaf as those who will not hear. So what do we do? Let the cowards flinch and let the traitors swear.

Today’s debate takes place against the backdrop of massive and decisive advances made in addressing the key challenge facing our country. The challenge that is facing our country is not the SA Diamond Board; it is to push back the frontiers of poverty. We are of the firm view that our achievements should not be measured by what the SA Diamond Board is doing, but they should be measured by the extent to which we contribute towards pushing back the frontiers of poverty, redressing the imbalances of the past and thereby providing a better life for all.

In this context we boldly submit that when the history of this country is written, the pioneering role which the Department of Minerals and Energy played in designing and effecting broad-based socioeconomic empowerment strategies will feature prominently. This could not have been possible without the commitment and leadership of the Minister, the Deputy Minister and the longest serving director-general in this democratic dispensation, as well as the strategic visionary leadership of our President Thabo Mbeki. By excluding the majority of South Africans from meaningful participation in the economy, denying them skills, stripping them of their assets and undermining their communities, apartheid concentrated all wealth in a small, racially defined elite. This is the structure of the economy that we have inherited. Our historical challenge is to transform this economy.

It is not enough merely to remove the barriers of apartheid; we need to proactively redress the wrongs of the past. We need comprehensive strategies which will guarantee access to the economy for those previously excluded at all levels, while at the same time increasing the overall competitiveness of our economy.

Black economic empowerment should provide rapid access to ownership, management and control of economic activities for previously disadvantaged South Africans, as well as socioeconomic development, better working conditions and remuneration, development in rural areas and opportunities for small and micro enterprises in as many parts of the economy as possible. The consequences of failing to achieve this will be severe for us all.

The 20th century saw immense development of our mineral and energy resources, yet the majority of the population did not benefit. On the contrary, more often than not they paid for this development with their blood and their sweat and not infrequently their lives.

The challenge of the post-apartheid era is to transform these sectors to secure a sustainable future for all. This is the core of the Government’s mineral and energy policy. More specifically, the concept of broad-based socioeconomic empowerment, pioneered in the minerals and energy sectors, provides for a comprehensive transformation of our economy from the boardrooms of our mining giants to the remote rural areas.

We should recognise the pioneering role played by the Liquid Fuels Charter, the first blueprint for the transformation of a sector of our economy. White Papers outlining Government’s vision for the transformation of the minerals and energy complex were tabled in 1998. In the past year, however, we have really begun to see the fruits of this transformation. Some key milestones deserve mention, such as the passing last year by this House of the Mineral and Petroleum Resources Development Act. This Act laid the foundation for the transformation of the mining sector. Following swiftly on its heels was the Mining Charter, a key component of the new framework, and we must congratulate the Minister and her department on the speed with which this process was concluded. The department has recently released the scorecard for empowerment in the mining industry and the royalties Bill has just been released and is provoking significant public debate.

Black economic empowerment in the liquid fuels industry has speeded up. In addition to existing empowerment deals already concluded by Shell, Engen and BP we recently heard the announcement of a major black economic empowerment deal by Caltex, as well as the finalisation of Total’s black economic empowerment deal. We are awaiting with eager interest the announcement of the black economic empowerment plans of the only major oil company without a significant black economic empowerment stake, namely Sasol. Thereafter we would urge that our focus be trained on transforming the gas and electricity sectors.

Last year also saw the launch of one of the giants, PetroSA. After a long process of restructuring the state’s oil assets, PetroSA has become a significant success story, paying a significant dividend to the state. In addition, PetroSA also leads the way in the oil industry in the transformation of its management, as well as procuring services from black economic empowerment companies.

The Government has introduced a new pricing formula for petroleum products to replace the outdated IBLC. This will save consumers millions of rands on petrol and diesel bills.

We should also recognise the nationally important role played by the associated institutions of the Department of Minerals and Energy and in particular the very successful efforts at transformation in these institutions. To date we have witnessed far-reaching changes. Fresh air is blowing in the boardrooms of the NER, the Council for Geoscience, Serf, Eskom, PetroSA, etc.

The leadership role that Eskom continues to play in the electrification programme is also worth mentioning as one of the key success stories of the RDP.

We must congratulate the Minister on her recent receipt of the highest accolade from the National Union of Mineworkers, in recognition of her championing of the cause of ordinary people in our country, in this case mineworkers, who bear the brunt of injury, death and ill health in the mining industry. This is a statement to the broad-based nature of the empowerment that the Minister is promoting.

As we implement more and more post-apartheid legislation, the role of both the department and its associated regulators increases in importance and complexity. Good governance is extremely important, both in the state sector and in the private sector. We are pleased that recent problems in some of these institutions have been resolved openly and even-handedly. The conduct of our institutions and those who work in them should be beyond reproach and it is the responsibility of each and every citizen in our country to report cases of corruption or maladministration.

Nevertheless there seems to be a growing trend in the media and elsewhere which seeks to portray black leadership in Government institutions and business as being inherently corrupt and incompetent. Managers and leaders should be evaluated on their merits alone, without reference to race.

Finally, in congratulating the Minister, her department and the associated institutions on another year of outstanding achievement, we note that the department still has significant capacity constraints. The more we transform the governance of the minerals and energy sectors, the more responsibilities we create for the department and associated institutions. It is imperative that this should be recognised in the budget process if we are to realise the full potential of these sectors of our society and our economy.

Siyabonga kakhulu MaMlambo. [Thank you very much, MaMlambo.] [Applause.]

Mr E J LUCAS: Mr Chairman, in previous contributions to the annual debate on the Minerals and Energy Vote I have stated that the hon Minister of Minerals and Energy is responsible for two of the biggest and most important sectors of our national economy. I want to restate that fact today as nothing has really changed.

The mining and minerals sector is still one of the biggest contributors to our gross domestic product, foreign exchange earnings, Government revenue and employment levels. So, too, is the energy sector, that in many ways drives economic activities through a stable and relatively cheap supply of electricity and other energy sources, such as fuel and natural gas. Yet, as with all economic portfolios in Government, the minerals and energy sectors are prone to a certain degree of volatility and cyclical movements beyond the direct control of the responsible Minister.

Recently, the strengthening of the rand against the US dollar has led to warnings of job losses in the mining industry. It has also, and very ironically, led to lower fuel prices. Who would be Minister of Minerals and Energy in conditions of such contradiction?

The past year has been a tumultuous one for the Minister and the department. After many years of endeavour and negotiations, the Mineral and Petroleum Resources Development Act was finally passed by Parliament. The Act is one of the most far-reaching pieces of legislation passed by the democratic Government since 1994, as it fundamentally alters the mining landscape and the way that the private mining companies interact with the state in exploiting the nation’s mineral resources to the benefit of all its people for the first time in our history.

It also creates the opportunity for real transformation and black economic empowerment in a historically minority-dominated industry. As was to be expected, not every party got exactly what they wanted in negotiations on the final Act. That is the nature of compromise. But the IFP wants to congratulate the Minister and all the other stakeholders for the mature and considered manner in which negotiations were conducted. Clearly all parties realised that national interest was more important than self-interest.

The Act also gave life to one of the most important transformation deals since 1994, with the so-called mining empowerment charter seeing the light. The power of this negotiated agreement between Government, business and labour to drastically transform ownership patterns in the mining industry and other aspects, should not be underestimated. It has the ability to fulfil one of the most vital tasks of democratic government, that of broadening ownership and of participation in the economy for the majority who have previously been excluded.

Herein, among others, lies the survival of democracy in South Africa. Even more so, the charter - after some initial hiccups - provides the mining community with the certainty and clarity it requires to do what it does best, that is creating wealth through long-term investments. That pertains not only to the local mining community, but also to overseas companies and investors that can compete on a level playing field in South Africa.

Having sung the praises of the Act and the charter, it would only be fair to express some disappointment at the length of time it took the National Treasury to come up with the Mineral and Petroleum Royalty Bill, without which the main Act cannot be effectively implemented. The Bill has been made available for public comment, and just recently the Minister of Finance, after discussing the Bill with the Chamber of Mines, announced that he would allow a further unspecified period to consider technical issues. That is all fine and well, but the Bill is urgently needed so that a new mining dispensation can finally be implemented in South Africa.

The IFP will support the 2003-04 budget of the Department of Minerals and Energy. Without going into much detail, we support the increase of R25 million on personal expenditure in the Vote, as it is clear that the department will require additional capacity to implement the Mineral and Petroleum Resources Development Act, and to manage the empowerment scorecard emanating from the empowerment charter. We also support the increase of R137 million for the electrification programme as Government, in conjunction with Eskom and municipalities, strives to meet the household connection targets.

I also want to raise one final point of detail on the department’s budget. It is common knowledge that the apartheid government relentlessly pursued nuclear power, indeed nuclear weapons, in the heyday of apartheid. The merits of that policy have long since been discredited and the programmes dismantled. Yet, democratic South Africa continues to pay for the folly in the form of repayment of big loans. Last year the charge to the department amounted to some R265 million. The good news is that this year it will be only R1,4 million, and next year the final payment will amount to R10,7 million. The citizens of South Africa can therefore look forward to a department that one year from now would have diligently serviced apartheid- era debt which it had no hand whatsoever in incurring.

I also want to touch on some general policy issues pertaining to the Department of Minerals and Energy. The first issue is the radioactive waste management policy. Whether we like it or not, South Africa is a nuclear power by virtue of the Koeberg nuclear station in the Western Cape, and the medium-level waste it produces. Currently, the nuclear waste is stored on site at Koeberg, but there will come a time when it has to be moved to a long-term storage facility. South Africa is ill-prepared for this process, and one of the reasons is that we do not have a new comprehensive radioactive waste management policy in place. It is my understanding that the Department and major stakeholders have been working on just such a policy for more than four years. That is a long time for consultation, but in light of Eskom’s plan to build a prototype pebble bed modular reactor at Koeberg, we believe that the new comprehensive radioactive waste management policy is urgently needed so that the long-term solution to high-level waste is decided upon and implemented before we run out of time.

Over the last few months we have been concerned about the public allegations of inappropriate and potentially fraudulent activities at the Strategic Fuel Fund and the SA Diamond Board. The IFP believes that the Minister acted correctly and quickly in ordering investigations and other proactive steps into these potential problems. Yet, we also recognise that if these ministerial initiatives do not quickly lead to resolving these matters, public confidence in the relevant institutions will not be restored. Both play an important role in economic activity and it is therefore vital that the bona fides be re-established as quickly as possible.

A further issue is the introduction of the new basic fuel price formula in place of the in-bond landed cost formula. The IFP supports the new formula as it appears to be more relevant and more indicative of daily developments on international markets. All in all the new formula should lead to a more accurate price at the pump for consumers. But we also know that any price formula is dependent on the input factors such as the exchange rate and the international oil price. Currently, both of these factors benefit South Africa’s fuel consumers. But this could, of course, change in the future. It is debatable whether any pricing formula could really sustain low fuel prices at the pump. We would therefore argue that the jury is still out on whether the new pricing formula will really benefit consumers to the extent that has been claimed. We simply have to wait and see and evaluate all factors after a few months.

In conclusion, the IFP believes that the Minister of the Department of Minerals and Energy has a difficult balancing act between effective regulation and oversight of the minerals and energy sectors, and promoting economic growth in these two sectors that are vital to our national economy. Nevertheless we feel that much progress has been made over the past year to unlock our natural wealth to the benefit of all our people in this regard. The Minister and the department must be congratulated and encouraged to continue their good work. I thank you.

Ms N S MTSWENI: Chairperson, the ANC supports the Minerals and Energy Budget Vote because the department has mostly achieved its aims of addressing historical imbalances in South Africa through the equitable distribution of energy and mineral resources. All of this happened because of the good leadership provided by the director-general, Sandile kaNogxina. Director-General, we thank you and your dedicated staff for the continued hard work. [Applause.] In the ANC’s 1999 manifesto our focus was on improving the quality of life. In the 2000 local government elections we focused on speeding up change, fighting poverty and creating a better life for all. This year we are pushing back the frontiers of poverty.

The ANC welcomes the fact that the progress made has transformed the energy sector, while currently non-grid electricity is approximately 10% of the electricity allocation. Non-grid electricity does not meet the energy requirements of the household, the limitation being technology. As more technological advances are made, the renewable energy sector is expected to form a large part of the energy mix. The introduction of the free basic service has vastly improved the lives of the poor households and this has reduced the burden of household labour, especially gathering water and wood, which usually falls on women and children.

Sihlalo la i-ANC yangithumela khona - endaweni engiyijamele la epalamende - kunomma owafika wazokuthokoza i-ANC. La ngisebenza khona bakhuluma iSetswana. Umma lo wafika wathi: Sesi uNomsa … bangibiza njalo abomma abakhulileko. (Translation of Ndebele paragraph follows.)

[Chairperson, where the ANC has deployed me, a place which I represent here in Parliament, there is a woman who came to thank the ANC. Where I am deployed they speak Setswana. This woman came and said: ``Sister Nomsa … ‘’ That is how I am addressed by elderly women.]

… ngwanaka, ke leboga ANC ka go busa seriti sa me. Mme a re o ne a tlhoka tšhelete, mme a sa kgone go letsetsa bana ba gagwe go ba bolelela ka tseo a ditlhokang. O ne a tlhoka metsi le dikgong tsa go besa. O ne a tsoga phakela ka ura ya bone phakela go rwalela metsi le dikgong. Mme a re gompieno, kantlha ya puso ya ANC, ga a tlhole a rwalela dikgong me o na le le motlakase mo ntlong. O na le tepe ya metsi mo jarateng ya gagwe mme o kgona go letsetsa bana ba gagwe ka gonne o na le mogala mo ntlong. O leboga ANC ka go busa seriti sa gagwe.

Se ke sesupo sa gore rona re le ANC re teng. (Translation of Tswana paragraphs follows.) [… my child, I thank the ANC for returning my dignity. My mother says that she did not have the money and could not phone her children to tell them about her needs. She needed water and wood to make fire. She woke up early in the morning at 4 o’clock to draw water and fetch wood. My mother says that today, because of the ANC Government, she no longer fetches wood and she has electricity in her house. She has tap water in her yard and she can phone her children because she also has a telephone. She thanks the ANC for returning her dignity.

This is evidence that we, the ANC, are there.]

The ANC further appreciates the flagship programme on integrated national electrification. We understand that this programme will facilitate the continued expansion of access to electricity, that it has already delivered above its targets during 2001-02, and also that it will proceed to the more remote and sparsely populated rural areas where the larger backlog exists. An integrated framework for a national strategy to roll out hybrid mini grids will be developed and implemented. This mini grid will be used to develop capacity and a vehicle to create awareness of such systems and to ensure sustainability, while emphasis would be placed in particular on sociological facilities and capacity with communities, as well as linking these pilot mini grid systems to new economic activities.

Mr Minister, although we appreciate the good programmes mentioned above and the report on household connections as at February 2002, that Eskom has exceeded the connections target, we have a problem with tariffs. Eskom has to bear in mind the poorest of poor South Africans. It does not mean that these people do not want to pay; the problem is affordability. Those are our people. They voted all of us into Parliament and they voted us to come here and pass laws that will change their lives, not laws that will make them suffer more than during the apartheid period. So Minister, this is a challenge to you.

Chairperson, the above issue brings in the problem around public education on safety and efficiency. I am sure that the department can come up with programmes if they are not there and projects that can be led by women’s organisations. Organisations like Sawima and Woesa can be used to teach people about public education and safety. These organisations need our support. Minister, this is another challenge that the ANC is putting on your shoulders. You will remember what Comrade O R Tambo said about the emancipation of women in our struggle. So keep that in mind and implement what the ANC wants to implement.

The ANC welcomes the introduction of the White Paper on Renewable Energy and the fact that it highlights the use of renewables for maintaining a balance between the use of natural energy resources and environmental considerations. When one talks about transformation, it goes a long way. We think of our women in particular - especially those in rural areas, semi- urban areas and squatter camps - and of how they were affected by the use of paraffin, gas, coal and biomass. Paraffin especially is cheaper, but much more dangerous. It can cause lots of damage to our people who live in squatter camps. We have seen on television how, if one shack is burned, it affects 10 to 15 of them. Most of us have seen that. So renewable energy resources other than biomass have not yet been exploited to the full. The country’s solar equipment industry is developing. The ANC appreciates this initiative and other initiatives like the solar passive building design, the national solar water heating programme, wind and hydro.

All the above initiatives will contribute to pushing back the frontiers of poverty and giving our people a better life. They will not continue to experience pollution, especially in winter, which has a serious impact on health. The ANC further welcomes the national programme that has been established with the objectives of introducing low-smoke alternatives into townships. Minister, Deputy Minister, Chairperson Goniwe and the department, we thank you for your dedication and leadership. I thank you, Chairperson. [Applause.]

Mr B M DOUGLAS: Chair, thank you very much. Since I am very new in this portfolio, but since the faculties between my peers are not so new I can really take care … [Interjections.] You should be quiet, because I was going to say that I note the reason why hon Davidson fled, because he is in no moral position to say what he has said. He has no moral standing. He was a chairman of the Johannesburg City Council when our people were arrested for owing the council. He was also the chairman instructing the council people to attack our people. They had their eyes shot out that day. He should be very, very quiet and get off his high horse of morality. [Applause.]

Today will indeed be a maiden speech in so far as the Minerals and Energy Budget debate is concerned. Therefore one should, instead of engaging in the analytical and academic, rather focus on the people who were involved in mining and what they went through in terms of the sacrifices, the toil and the suffering in order to build these giants we have today. I am referring here to the asbestos mining ghost in Limpopo and the Northern Cape. I shall also touch on the plight of the dispossessed communities in the Richtersveld, etc. I must get back to Eskom - I really can speak on Eskom - because morally I have the platform to speak on what is happening to our communities at Eskom, and not the guy that I mentioned earlier, the hon member that has fled. I shall also touch on solar energy, and wind energy or perhaps I should rather say cleaner resources or environmentally friendly resources. [Interjections.] [Laughter.]

Bly stil, Meneer. Ek meneer en jy meneer, wie sal dan die wa moet smeer? Bly stil, Meneer. [Gelag.] [Be quiet, Sir. I am proud and, thou art proud, who shall bear the ashes out? Be quiet, Sir. [Laughter.]]

Mr Chair, it is indeed much appreciated that Eskom has brought electricity to nearly three million households in the Republic of South Africa over the past 10 years. In addition to improving the quality of lives of millions, their electrification has also contributed to, or resulted in, the creation of small, medium and macro enterprises within disadvantaged communities. However, much more attention is needed to address backlogs and economic empowerment in rural areas.

There is also concern for the real or imaginary alarm bells sounded by the unions about possible retrenchment of over 10 000 persons out of a workforce of slightly over 30 000, which would make up about one third. This is worrying if it is really true. But on the other hand, we have the privatisation of 30% of the assets or 10% going to black economic empowerment groups, which is seen in a positive light. One hopes to be optimistic that positive confluences of good intentions shall eventually address worker concerns.

Daar is ‘n groei van 46% in Eskom se winste wat in monetêre terme vertaal na biljoene, terwyl baie verbruikers van krag skreeu oor die bo-inflasie verhoging. Swak kredietmaatreëls en -kontroles en armoede het nou bad debts'' enirrecoverable debts’’ in miljarde die hoogte ingeskiet. En ja, die persepsie is daar dat Eskom besig is om van homself ‘n politieke organisasie te maak. As ‘n mens luister na die uitlatings van meneer Fanie Zulu, dan sal jy vir jouself sê, maar ``this is devisive; this is rather mundane; this is a little bit intellectually pedestrian.’’ (Translation of Afrikaans paragraph follows.)

[There is a 46% growth in Eskom’s profit which in monetary terms translates into billions, while many electricity consumers are crying out against the above-inflation increase. Weak credit measures and controls, and poverty, have now had bad debts and irrecoverable debts sky-rocketing into billions. And yes, there is the perception that Eskom is busy turning itself into a political organisation. When one listens to the remarks of Mr Fanie Zulu, then you will tell yourself, but: “this is devisive; this is rather mundane; this is a little bit intellectually pedestrian.”]

He should be careful, because if he wants to campaign we could register him with the IEC in order to become a political party. What he is saying has political implications, but on the other hand it is very important that these perceptions should be laid to rest so that people can know. And maybe this should be reciprocated to other municipalities, so that they should also now look at getting into this writing off, because poor is not only poor in Soweto; poor is poor all over. We shouldn’t allow the hon Davidson to have said what he did, because he should not even have done that.

This is very serious and some people are promising to embark on campaigns, which we should really try and avoid. I’m sure the Government is pro people

• pro poor people - and that the matter can be laid to rest. One should not be a fire brigade all the time.

Over to the Richtersveld question. Here again we are dealing with the restoration of rights of the Nama community, not the distribution of favours. These people’s land was annexed by the British in 1847 and the subsequent discovery of diamonds in the area led to further - according to senior counsel Trengrove - racist dispossession, whether lawful or unlawful. The Nama community, the Government, Alexkor and Trensek need wise counsel to prevail here and to create a synergy between all role-players so that nobody may become a casualty - neither the mining houses nor the Government’s reputation of delivery, nor the community themselves. The Appeal Court in Bloemfontein has ruled, however, in the community’s favour, but we know that there is an appeal that is coming that way.

In asbestos mining there is another landmark agreement between victims of asbestos-related diseases and British company PLCU. [Time expired.]

Mr S K LOUW: Thank you very much, Chairperson. I am speaking in support of this Vote. The Minerals and Energy budget is within the context of much delivery in the sector, which needs to be reviewed to gauge the effectiveness of Government delivery over the coming years to create a better life for all.

This delivery creates the first visible signs of concrete transformation of the liquid fuel industry towards the vision which is crystal clear in the White Paper on energy. It is important for us in this Budget Vote to recognise the achievement of the Ministry and the department before setting out our priorities of further delivery.

IBLC has changed to basic fuel price. The country, through the efforts of SFF, possessed strategic stock at a crucial time, as thereafter the Middle East was plunged into crisis with the war in Iraq and uncertainty in the international crude oil prices. The matter between SFF and HBTI/Trafigura has been resolved to the satisfaction of Government. State assets have been effectively restructured in the liquid fuel sector into a national oil company, which is South Africa’s own PetroSA.

In the liquid fuel sector the former apartheid government created a variety of state assets in efforts to avoid international sanctions. These assets were not created on a sound commercial base and this did not cover the entire value chain. To operate productively in a commercial base these assets never possessed the requisite skills base, resulting in some companies suffering financial loss.

Our Government has been acutely aware of the problems these state assets in the liquid fuel sector face in the post-apartheid era and it has therefore engaged in a process to restructure. The launch of PetroSA was indeed a proud moment in the history of the liquid fuel industry, given its notorious past under the apartheid regime. PetroSA has an important economic role to play as a commercial enterprise. Government would like to view the company as a measuring gauge to judge the oil industry’s performance and contribution to the economy of South Africa.

PetroSA is a world leader in its experience of converting gas to liquids, which requires global marketing as no other GTL plant has the manufacturing capacity of PetroSA and the function of such a lengthy period. Gas, as all of us know by now, is one of the most critical energy resources and it is a strategic partner in the energy industry. It is, in fact, ensuring a paradigm shift in terms of renewables. With that objective it also has to provide low-cost energy for South Africa and the African region, which makes it a potential partner for a commercial relationship with any other possible supplier of gas within the region. By doing this, it will contribute to the efforts and processes aimed at the generation of the continent, which has an abundance of untapped energy resources.

Countries within the African Union, such as the DRC, Angola, Mozambique and Nigeria, have the potential to develop their energy resources and to ensure sustainable growth within the integration of state assets in the liquid fuel sector into a national oil company. It is absolutely imperative that the Ministry and department consider the restructuring of CEF into an energy development arm to serve the economic priorities of our new South Africa.

It is about time to consider that the new CEF has to be put out and all commercial activities contained in CEF should, as a matter of priority, be transferred to PetroSA. The Ministry and the department should also define the structures of the new CEF and its developmental role.

I want to focus on a thorny issue in the industry, which is very important to this House, and that is the Sasol subsidy. It must be put out very clearly that the national oil company, PetroSA, does not require any subsidy. This means that other fuel producers like Sasol equally do not require any subsidy. In business terms they used to call it tariff protection. Tariff protection in this context means that no subsidy is required in a context where production costs are under US$10 per barrel. Moreover, it is important to refresh the memory of the department to the fact that the Arthur Andersen report initially suggested that the subsidy would be in the region of R1,5 billion. For a number of years these subsidies have been stopped and the department should not resume subsidising any other project further, as it is never economically justifiable.

In fact, research funding would be a better spend in other areas of importance. We need to look into better options on how to spend on research funding on a tariff protection study. We also need to be more focused on NGOs engaged in research in this sector that need funding and are busy collapsing.

Energy is the driving force for our national economy. Our industry and its stakeholders have a special role to play. It has to align itself to the priorities of Government to ensure a better life for all. Many oil companies have made an important start towards implementing black economic empowerment. The efforts of our Minister towards achieving BEE in the industry are commendable, as mountains of work were initiated in this project.

PetroSA is a leading figure in this process. It can be clearly identified as a champion in this terrain, whilst there are others who are undermining the process, producing an uneven scale … [Applause.]

Ms N V CINDI: Ndiyabulela, Maqabane [Thank you, comrades]. Minister MaMlambo, Deputy Minister Susan, hon Director-General Sandile Nogxina, members of Parliament, colleagues and friends, it’s just a pity that I am talking long after Mr Davidson said the wrong things to us, but I don’t think we should care about what he has just said. Maybe he is suffering from foot-in-mouth disease. [Laughter.]

Government is recognising the potential of small mining as a tool to reduce poverty and create employment, especially in the rural areas. As we all know, the majority of people in the rural areas are poor women who enter the mining sector for purposes of providing a livelihood for their families. Government has committed itself to seeing to it that the small- scale mining sector receives the necessary attention in order to become sustainable, in line with the minerals and mining policy of South Africa.

The Department of Minerals and Energy, or DME, will increase the funding allocation annually to assist in developing the small-scale mining sector from R5,1 million to R15 million for the 2003-04 budget year. We therefore show our commitment to the sector by putting our money where our mouth is.

We are completing the recruitment of nine small-scale mining officers, who will enhance our capacity to deliver services to this sector in each province. Said officers will co-ordinate all functions relating to the execution of the DME’s goals on the ground. This includes providing information, guiding aspirant new entrants to the mining industry and generally supporting them while also integrating the DME’s efforts in other development initiatives in other areas of operation. In this regard it is important therefore that an effort be made to also support women in mining through structures like Sawima.

Through the structures established by and working closely with the DME we continue to provide assistance with resources, evaluation, project development, business planning, environmental management training and financial guidance. The department is processing over 120 applications for small-scale mining, as well as applications from women miners from all nine provinces. In addition there are approximately 20 projects which are at different stages of development. With regard to other applications, the national steering committee is in the process of identifying those with the best potential for viability to be added on as projects.

Very often when one discusses small-scale mining and Sawima’s specific problems, those who are involved always point out that they encounter problems in relation to access to minerals right, access to land, access to finance, the lack of technical expertise and entrepreneurial skills, and access to information such as geological and mineral economic data and proper interpretation thereof.

Government is well aware of these problems and barriers, and we are taking measures to address these issues. It is critical that we focus the attention of the DME’s efforts on driving the small-scale mining development process forward as well as on the participation of women in mining to ensure successful integration into the mainstream mining sector. Success in obtaining funding, facilitating joint ventures where possible and getting projects off the ground is reliant on the total dedication of all the stakeholders in a project.

Government has committed itself to see to it that the small-scale mining sector receives the necessary attention in order to become sustainable. Together with our partners in the industry, we have initiated a small-scale development framework to provide institutional support to the small-scale miners, as there are already pilot projects which have been identified and funded.

Most of the operators lack adequate capital and ability to evaluate potential reserves. This results in operations that are very unsafe and damaging to the environment. The target market for assistance by the framework remains the illegal or substandard operations, which we aim to legalise and convert into sustainable operations; undercapitalised operations which require expansion or optimisation; first-time entrepreneurs interested in entering the sector; and, mostly, open graves waiting to swallow victims due to unsafe and unhealthy operating conditions.

In 2003 the National Small-Scale Mining Development Framework is set to achieve the following goals: completion of the Postmasburg Iron Ore Business Plan and project capitalisation; setting up of the pegmatite processing facility in Namaqualand; the construction of a second diamond plant destined for diamond prospecting in the Northern Cape; contributing to the generation of training and qualification standards through the MQA, the mining industry Seta; implementation of the sandstone dimension stone industry in the Free State; and the copper-leaching exercise in the Northern Cape.

The small-scale mining sector can make a significant contribution to job creation in the mining industry and thereby alleviate poverty in South Africa. It is estimated that about 1 000 jobs can be created for every 7 to 10 sustainable small-scale mining projects implemented.

The National Small-Scale Mining Development Framework continues to provide the following services to approved projects. We have resources evaluation; project development and training; environment management planning; business planning; and financial guidance.

The South African mining industry is male dominated. Women who were employed there were doing jobs that have traditionally been seen as women’s work, such as clerical, secretarial, catering and other work. It is the purpose of the mining charter to redress this alienation of blacks and women in the mining industry. [Time expired.]

Miss S RAJBALLY: Thank you, Chairperson. Hon Minister and Deputy Minister, the MF is proud of you two mbokodos [rocks]. [Applause.]

The effective management of this sector is extremely crucial to our economy, especially its performance on the JSE. However, concerns are spread beyond this to various factors concerning the sector.

In terms of energy, there are factors around energy efficiency and the environment with regard to which precaution is a must. In so doing, much planning and analysis of energy data is necessary. The department’s accuracy in calculation is crucial and the action taken is important. Energy covers a wide spectrum, namely nuclear, electricity, liquid fuels, coals, gas and renewable energy, that all contribute to our economy as well as our social sustenance.

The MF is quite pleased and impressed by the department’s efforts in mineral development in this sector. The department has undertaken efforts in mining economics, mineral economics, mine rehabilitation and mineral regulations. We know that no task comes without hiccups, and the media have a strong hand in covering that.

One of our great concerns in this sector is the labour force. To date the statistics on mineworkers with HIV/Aids are shocking and horrific. But the MF is aware that the department has policies and programmes in place to oversee the mine health programme and safety regarding issues such as mine equipment, mine surveying, mine safety, the Mine Health and Safety Act, occupational health, examinations, award schemes and accident rates.

It’s impressive to note that seven commodities with regard to South African reserves rank the highest globally. Noting our large reserve base and importance as a global producer, we are really export orientated. This plays a major role in our economy. The MF supports the Bill. [Time expired.] [Applause.]

Mr N NGCOBO: Thank you, Chair. Hon Minister, Deputy Minister and hon members of Parliament, I start by accepting the Budget Vote for Minerals and Energy on behalf of the ANC. My theme today will be based predominantly on considering the nuclear programme and the policies of South Africa before and after apartheid.

Many people are not very well informed on the origins of nuclear power for commercial purposes. Therefore, if you do not have a correct base you are likely to commit a number of errors. So it is very important that people are given a good background so that some of the arguments and debates can be based on sound information, knowledge and sources.

Nuclear power in itself originated in the year 1932, when they dicovered the neutron at the Cavendish Laboratory at Cambridge University. This marked the beginning of nuclear energy generation research, which culminated in 1942 in the design of the first nuclear reactor at the University of Chicago, called the CP1. Following this the United States government started to classify this dicovery into what was called the Manhattan Project, which culminated in the announcement of the nuclear capability of the United States and the destructive power, in nuclear terms, which destroyed the two cities of Hiroshima and Nagasaki in 1945.

At the time this was viewed by the Soviet Union as a threat to the world. Therefore people in the Soviet Union were also quickly instructed by Stalin to engage in this classified project, which culminated in 1949 in the Soviet Union’s announcement of its first nuclear atomic bomb.

In a nutshell, nuclear power for consumer purposes came as a by-product of military use of nuclear technology in the world. Therefore, South Africa was no exception. Literature reveals that in the apartheid era South Africa launched the nuclear weapons programme as part of its national security policy, based on the perception of a domestic, regional and international threat, encapsulated in the theory of ``total onslaught’’ as planned by communist forces globally, regionally and domestically. The USSR was perceived as the main orchestrator of global communism that would lead to a conventional assault on South African territory.

In the view of Admiral Biermann, Commandant General of the SADF in the early 70s, successful defence of the southern hermisphere lay in the deterrent strategy based on nuclear terror. The escalation of political changes in the Southern African region, which saw the end of Portuguese rule in Angola and Mozambique in 1974 and the emergence of communist regimes in these countries, reinforced the conviction that South Africa was being encircled by communist forces for the final takeover by these forces.

The intensification of the anti-apartheid struggle of the mid-seventies, including the 1976 uprising, was, according to the apartheid government, also sponsored by these communist forces and this development strengthened the regime’s resolve to develop a nuclear deterrent capability. The arrival of Cuban troops in Angola after the establishment of the MPLA regime provided a final stimulus for the apartheid regime to develop such a defence capability. In the words of PW Botha, the then defence minister, South Africa had to strengthen both its conventional and its nuclear capabilities. South Africa also enjoyed support and sympathy from Western powers, who also perceived the changes in the Southern African region as the USSR’s communist expansionism on the African continent, which had to be stopped before their economic interests were at stake inside South Africa.

Earlier in 1948, the Atomic Energy Board, or AEB, as it was known at that time, had been established by an Act of Parliament. The latter led to the start of nuclear research and development activities in 1961 at the Pelindaba site near Pretoria. Although the research activities in those years seemed based on the peaceful use of nuclear technology, it seemed that the long-term consideration by the Western powers was to protect their economic interest against USSR expansionism.

Evidence from the 50s and the 60s shows that South Africa received extensive assistance from abroad, ranging from the training of scientists in Europe and the US right up to providing highly enriched uranium under the pretext that this was to be used for the peaceful nuclear explosive programme. In 1965 the United States thus supplied South Africa with the Safari-1 research reactor which is at Pelindaba today, and in 10 years it also supplied South Africa with 100 kg of weapons-grade uranium.

Naturally, uranium occurs as 3 isotopes, namely uranium 234 isotope, which is about 0,0057%; uranium 235, which is about 0,7193%; and uranium 238, which is in abundance as 99,275%. When enriched for weapons purposes, uranium 234 becomes 0,1%, uranium 235 becomes 94,0% and uranium 238 is reduced to 5,88%. When it is to be used for reactors like Koeberg, it is called low enriched uranium in which uranium 234 is 0,025%, uranium 235 is 3,5% and uranium 238 is 96,475%. So this is just a clarification of what I will be talking about, namely the enrichment activities that happened in some of the plants at Pelindaba and Valindaba.

In 1975 this support of South Africa by the USA was suspended due to international sanctions against apartheid policies. Following this suspension South Africa began to engage in secret procurement networks in Europe and the USA and also began secret collaboration with Israel, leading to a joint nuclear and missile programme between the 70s and the 80s. South Africa was also provided with methods for producing and separating weapons- grade plutonium and uranium during this period. Following this, the then Prime Minister John Voster informed Parliament in 1970 about the uranium enrichment project and the building of the pilot plant, the Y-plant, at Valindaba, next to the Pelindaba Research Centre.

This Y-plant was commissioned in 1974. In 1978 it began to produce highly enriched uranium for the weapons programme. In addition to this, the new plant also produced 45% of enriched uranium for the Safari-1 reactor at Pelindaba, thus defeating the effect of the sanctions regime as imposed by the international community in this regard. The Y-plant produced a total of about 400 kg of weapons-grade uranium, which was used for South Africa’s nuclear weapons. But in 1978 the US Congress enacted the nuclear non- proliferation Act, which precluded the transfer of nuclear technology to countries not party to the non-proliferation treaty. This Act was applied retroactively on all previous agreements and contracts and directly led to the refusal of export permits to South Africa for shipments to France of its own uranium, already enriched by the US department of energy for the Koeberg nuclear power plant.

This latter contract had been concluded between Eskom and the US department of energy soon after the conclusion of the reactor supply contract between Framatome of France and Eskom in 1974. Despite this - its refusal to grant Eskom an export permit for the transfer of enriched uranium - the US department of energy still held Eskom fully liable for payment for enrichment work completed under the contract. This catch-22 situation … [Time expired.] [Applause].

Ms N F MATHIBELA: Chairperson, hon Ministers, hon members, ladies and gentlemen, I feel honoured to be part of this debate. Firstly, I would like to congratulate the Minister on her award of iSithwalandwe, which she received from the NUM, and also to congratulate the NUM on the wonderful and successful conference which they have just had. [Applause.]

Ndithi: Phambili, mantombazana. Yibambeni. Wathint’ abafazi, wathint’ imbokotho! [I say: Forward, ladies. Hold on to it. You strike a woman, you strike a rock!]

You teach a woman, you teach a nation. That is why the mining sector is being transformed today. [Applause.]

Chairperson, allow me to get to the business of the day, the budget of Minerals and Energy, which the ANC welcomes with open arms and which will help to improve the lives of our people who were previously neglected by the minority government. We applaud our Government, which is led by the giant movement, the ANC. This Government has aim and vision, a mission, slogan and mandate, and values.

Our achievements are Arm Gold, Vaal Reefs and Orkney. Up to 102 miners died in 1995 and the Government built houses for their families and gave them projects and skills training. Compare this to the Coal Brook Mine accident, where 500 miners were killed and their families got nothing from the previous government. In the same disaster, a mother lost five sons and nothing was done for her. This shows that our Government is a caring government.

The Minister has put money aside which is committed to mine safety and health. The amount is R80,067 million, with an adjustment of R86,361 million. That is a sign of a caring government. Previously, these people were not even considered as human beings. If there was a disaster, most of them were not even known and their families would not even be contacted. There were no safety measures. However, our Government is making sure that it improves safety daily in the mining sector.

At the time of the report, it was pointed out that 14 million people are living with HIV/Aids in Africa, and other reports indicate that HIV/Aids is a serious concern in Africa as a whole. HIV/Aids is one area that the Minister is concerned about, as we all know that these men are far from their families and also get infected with this pandemic. According to volume 10 of the fourth issue of the SA HIV/Aids Information Dissemination Service, dated December 2002, at the time of the report it was pointed out that 14 million people were affected and infected. This report indicates that it is really a serious concern. For example, what contributes to this is illiteracy, disability, the unwillingness of mine managers to educate miners, and let’s not forget poverty and housing.

Finally, we make a plea to all communities to help fight these diseases and commit ourselves to Government’s plans. [Applause.]

Mr B G BELL: Chair, Minister and fellow members, it is my pleasure to speak on behalf of the DA in this budget debate.

When discussing a budget, one is inclined to think only of the money needed and allocated to a project or a department. In fact, the planning behind a budget is far more important, and it is this aspect that I will discuss. I’m pleased to hear of the completion of the Integrated Energy Plan, although we have not seen it yet, but hopefully we will, very shortly. Eskom, as we all know, is our major supplier of energy, using coal as a provider of heat energy, which is converted to electrical energy.

Some 30 years ago, the forecast for energy consumption was overestimated and power stations were built to meet the perceived needs. This resulted in South Africa having far more electricity available than required. Smaller, older stations were mothballed and the building of two stations was actually cancelled.

Today we are caught up and we hear that our peak loads are almost at the limit of our capacity. In fact, from press reports and industry reports, there was a sudden surge in power demand, and in March an 8,5% increase was experienced. This is far higher than anticipated, and winter is not here yet.

The possibility seems imminent that shortages may be experienced if nothing is done immediately. The question is whether the mothballed stations will be refurbished and commissioned in time. Has the source of coal been indentified and have contracts been signed? Is Transnet capable of moving the coal supplies efficiently? Have they the engines? Have they the rolling stock? Have they sufficient qualified drivers to meet the increased traffic?

All these questions must be answered if Eskom is to produce enough energy this winter and in future. It is very encouraging to hear that the Southern African Power Pool is progressing well and may, if the politics can be resolved, supply sufficient energy for South Africa in the future.

The stronger rand alone in some aspects is excellent for the country. It is a disaster when we talk of exports and the mining industry. Gold, platinum, coal, iron, ore and many other minerals are all looking carefully at their profits. Some gold companies have already announced the possibility of cutting back and deferring capital projects. Our three main coal mining companies have said that they are all reviewing their activities. The rand needs to be more stable and should not fluctuate to the extent that it is doing for our industry to plan ahead.

With our enhanced activities, research is becoming more and more important. This Government needs to review the resources allocated to this field if we are to remain a major force on the African continent.

The money Bill, to complete the implementation of the Mining Rights Act, is still not in place and we await this Bill with trepidation. From reports we have learned that it could be very controversial.

The Council for Geoscience is doing excellent work in the field of mapping our country and the African shelf. They need to be encouraged and properly financed.

Prof I J MOHAMED: Deputy Chairperson, it is a pleasure for me to support, on behalf of the ANC, the Budget Vote of the Department of Minerals and Energy, the DME. We congratulate the hon Minister Phumzile Mlambo-Ngcuka and her Deputy Minister, Susan Shabangu, and her staff for a department we have the greatest pleasure to work with, and particularly the director- general, Adv Sandile Nogxina. We know our Minister will accept the bouquets with pleasure and the brickbats with grace.

Deputy Chair, my focus will be on the electricity programme of the DME. Electricity has a major impact on our lives, from the poorest dweller in a mkhukhu [informal settlement] concerned about free basic electricity to the mining executive requiring high-tension power lines and special transformers. There are issues of efficiency, costs and what you can get for your 50kWh or your 100 000kWh. The developing economy and our ability to compete in the global market are crucial for the wellbeing of all South Africans and depend on the availability of efficient and economical electricity. The DME’s current main concern is with energy efficiency improvements, transformation of the industry and meeting social needs and expectations.

Let us consider energy efficiency improvements. The supply of electricity in the city and major towns is reasonably efficient. There are, however, problems of meter readings, supply cutouts at times and even substation blowouts because of overloading. There are serious concerns about cutouts due to low voltage in the rural areas.

The DME says that the key problem in rural areas has been identified as that of infrastructure. Municipalities are reluctant to make any investments in infrastructure until the planned regional electricity distributors, or REDs, are formed. This is one of the reasons why the DME is speeding up restructuring. Eskom has set aside R700 million in the current financial year to revamp their electricity infrastructure, which we welcome.

We have to deal with the legacy of apartheid, which created problems of crime and a situtation in which the poor and most blacks were not provided with many essential services like electricity and homes. Today we have a small criminal element that vents their frustration about the cost of electricity through vandalising prepaid meters. The ANC is helping to explain the advantage of prepaid meters, especially in Soweto and other major areas. We welcome this, but need to do more to address the problems of the poor.

In part of my constituency area, namely Doornkop in Soweto, part of the Johannesburg metropolitan area, the only clinic was at one stage without electricity for a few weeks. The result was that they could not store antibiotics or vaccines. Our constituency office intervened on behalf of the clinic. This problem results from the stealing of cables, and the community needs to address this wherever it occurs.

I want to turn to transformation and restructuring. Currently the electricity industry consists of the vertically integrated monopoly Eskom alongside a number of municipal distributors. The generation, supply and distribution are largely in this one monopoly, Eskom.

This structure is unsustainable. Distribution is largely in structures of inefficient size, tariffs vary widely across the country and so does efficiency. Generation has few incentives to compete on price. There is little competition from gas and oil as these are at this stage rather small providers. The DME budget allocation to electricity is 145 times as much as that for hydrocarbons.

The DME has developed policies for the reconstruction of distribution and supply. This year the electricity distribution holding company will begin the reform of the distribution industry, for which extra funds have been provided. The department says significant progress on the electricity supply industry will be made this year.

What is the position about generation? The DME is currently engaged in an approach as follows. Firstly, the corporatisation of Eskom has been achieved. Secondly, we have the reclustering of the generation plants of Eskom to stimulate internal competition to ensure more efficiency gains. Thirdly, the market rules on how trading will take place in the electricity market will be completed and presented to Cabinet before the end of the year. A trial run on how the market will operate using Eskom clusters will be undertaken. Fourthly, the private sector will be introduced once the efficacy of the market rules has been established. One of the reasons for market failures all over the world is poor market rules. The ANC welcomes these intiatives.

We welcome the approval of the DME’s policies on black economic empowerment, or BEE. A state-owned transmission company will be formed and 10% of generation capacity will be sold to BEE groups. The DME says it is Government’s view that for effective empowerment there should be broader involvement of various participants. The department has done a study to establish the interest in the BEE sale by approaching existing companies, and found that interested BEE companies in the 10% sell-off already exist. Part of the transformation process is the development of renewable energies, which my comrade Nomsa Mtsweni addressed already.

The DME also says that it will ensure the provision of low-smoke coal and the energy efficiency of this. The department will collaborate with the Department of Health to monitor health cases as a key performance indicator.

The social imperatives are a very crucial issue to address. The Integrated National Electrification Programme aims to provide universal household access to basic services within 10 years and electrification of all schools and clinics. The current backlog in electrification for households is 33%, while the estimated number of schools and clinics without electrification is 10 000 and 500 respectively.

According to Stats SA, based on their 1996 census, the population growth rate is 2,2% per annum. The 10-year horizon was based on zero growth rate and at current funding levels it will be closer to 12 years. Free basic electricity of 50kWh is a key component of Government policy to alleviate poverty and meet social expectations, which we wholeheartedly support. Fifty kilowatt-hours offers very basic electricity needs. It offers limited cooking, ironing, lighting, water heating and access to radio and television. It does not meet social expectations, even at present, but it’s a major step in poverty alleviation.

Finally, there is the thorny issue of price increases for electricity. New power stations will have to be built, possibly three. Eskom says there will have to be substantial increases, as the cost of these would have to be recovered. The National Electricity Regulator says that they will keep price increases below the inflation rate. The DME says there is no other way of funding the new capital costs except by passing the costs to the consumer.

So it seems clear that we can brace ourselves for a substantial increase in electricity costs and repercussions through the industry chain. We will recall that the ANC Government had to intervene to pay arrears which resulted from the disastrous policies of the previous government.

We are confident that the DME will find an acceptable solution, as we are all concerned about remaining within the inflation targets of Government.

I would like, for the last few minutes available, to talk about the Expenditure Estimates. Very briefly, if we look at Expenditure Estimates and trends, the allocation to the Energy Management Programme for this year is R1,2 billion, or 67% of the DME’s total allocation of R1,8 billion. The allocation to this programme increases to R1,3 billion by the end of the MTEF period and remains constant at 64% of the Vote.

Transfer payments are of some concern. These are R27 million last year, R71 million this year and escalate to R83 million by the end of the MTEF period. The DME must give us more details of this. The expenditure on professional services increases from R15 million last year to R22 million by the end of the MTEF period. These figures suggest the DME has received the additional funding to address the known staff shortages, but on the other hand we need to know why the professional services and special services are required. The DME has provided us with an answer to that, which I cannot go into right now. Thank you, Chair.

Mr J H NASH: Chairperson, this Budget Vote occurs within the context of real change, delivery and transformation in the minerals and energy sector. Budget Votes are not about praise singing but about stocktaking. The Minister, the Deputy Minister, the director-general and his staff all need to be congratulated on the level of delivery over the past year.

It is imperative that Government does not fall into the trap of the opposition DA that merely criticises without any concrete alternative policy on any matter of importance in the minerals and energy sector. After 10 Budget Votes it is clear that the DA has no real policy on the heart of the South African economy, namely minerals and energy. Their commitment and contribution to the development of the people and the economy of this country is faulty, callous and therefore suspect.

The only thing which Mr Davidson could come with today was the SA Diamond Board, and for his benefit the CEO of this board was suspended. He asks us to tell him about the accountability of the Minister. The diamond evaluator was replaced and an inquiry was instituted. What more do you want from the Minister, Mr Davidson? Tell me. Mr Bell wants to know, of all things, where Eskom is going to get the trucks to supply coal during the winter. Where did we get them all these years, Mr Bell? Tell me. One sees how bankrupt the DA is.

The launch of PetroSA has been a mammoth achievement through the restructuring of disparate state assets into a national oil company. In the development of a policy for the liquid fuels sector the opposition, which opposes all constructive ideas for the country’s development, had to suggest that the national oil company was never a real possibility. This is really the never-never party on our left here. Today this possibility is fully functional and exploring for opportunities outside the borders of South Africa. Besides securing crude oil reserves for the country, PetroSA has an important role to play in the development of the African upstream oil industry, thereby playing a crucial role in the development of Nepad. I have previously stated that Nepad can only arise on the economic infrastructure that currently exists on the continent, the core industrial activities of which are the minerals and energy complex and agriculture.

PetroSA positively contributes to the economy of this country through foreign exchange savings of more than US$1 billion per year. The restructuring of state assets into a viable commercial entity means that the manufacturing plant in Mossel Bay will not have to shut down in 2008 but has a life beyond 2020. This has important implications for the Mossel Bay area.

Commercialisation means that this company would pay both taxes and dividends to the fiscus and has already done so to the value of R2 billion. The success of PetroSA would require that it make foreign investments in other parts of the world, especially in Africa, for its success. The bulk of the profitability of most global oil companies occurs through exploration and production, with downstream only forming some 30% of the profits.

While initial expenditure for PetroSA’s investment might require capital, it is imperative for the Government to take a long-term view when looking at the fruits of the investments for the country and the continent. Reserve Bank restrictions on investments in Africa should not affect PetroSA negatively. Government would have to facilitate the conditions for PetroSA’s entry into crude oil producing markets.

In the final analysis, the ANC Government has turned a R11 billion dinosaur into a productive, profit-generating cash cow. This experience clearly indicates that dinosaurs can fly. [Laughter.] Minister, it is well known that during the apartheid era the creation of Mossgas was premised on technology and licensing provided through Sasol. This licensing arrangement occurred through the dictates of Mr P W Botha. It is equally well known that Sasol was created from billions of rands from Government funding and the privatisation of Sasol 3 occurred under dubious circumstances during the apartheid era.

This Sasol licensing agreement on PetroSA is restrictive and anticompetitive, therefore requiring stern Government intervention to facilitate PetroSA’s ability to market petrochemicals globally. In any normal situation, after paying a licence fee or royalty, there should be no restriction on the business. Under this licensing agreement … [Time Expired.]

The MINISTER OF MINERALS AND ENERGY: Thank you very much, Mr Chairperson, hon members and thank you very much Tat’ uNash. Bakuxolele kodwa. [They have have forgiven you, but … ]

Even though I would like to say nice things, because most of the members have debated in a very helpful way, and have in general raised things that we have answers for in a very positive manner, I have to take on Davidson. INkosi ingangijezisa. [God may punish me.]

Mr Davidson rants and raves about the SA Diamond Board as if all the things that have happened there have not been because of our initiatives. There was the Taljaard report, which was a result of the work initiated and carried out by the department. When we noticed the problems, we changed leadership. We appointed a very efficient chairperson. I donated one of my own staff members when we had to fire the chairperson, who, by the way, was a person that Mr Davidson here, in this House, used to defend and speak for.

Mr I O DAVIDSON: [Inaudible.]

The MINISTER OF MINERALS AND ENERGY: I am surprised that you actually think he was problematic. [Interjections.] That comes as a surprise to me. [Interjections.] Your type of questions in this House implied that you actually wanted to protect the CEO of that time. [Interjections.]

So, I am surprised that now you have realised that we have had to take action in order to restrain that individual from continuing to mess up that institution. You are also … [Interjections.] Well, that is interesting too. In any case, I would like to assure …

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Order! We can only have so many interjections.

The MINISTER OF MINERALS AND ENERGY: I would like to assure the hon members that the SA Diamond Board is in safe hands, as it folds up, because, in accordance with the new dispensation, the role of that institution will no longer be relevant. [Interjections.]

I also … [Interjections.] Definitely, we will do that, and that is why we have taken action to punish those who have abused the resources of the state. That is accountability. However, it takes time as we research and investigate, because we will not judge people without having taken due process.

I also want to address the issue of Eskom. The write-off of the debt has happened in the context of the service delivery framework agreed between Eskom and elected representatives and community-based organisations in the Gauteng area that is supplied by Eskom. This is not a backdoor agreement. Some of these debts date back to the time when hon Davidson was in the council of Johannesburg. [Interjections.] He messed it up thoroughly, and now we are saddled with obsolete technology and a lot of inefficiency in the infrastructure. This is because at that time you were installing that technology and infrastructure for ``kaffirs’’. You did not care. Now it is the problem of Eskom, who have to sort this out.

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Order, hon Minister. I think that word is unparliamentary, and I would ask you to withdraw that word. Mr M J ELLIS: Mr Chairman, on a point of order: It is more than just unparliamentary; she said it in a fit of temper and, quite frankly, that kind of behaviour from a Minister is absolutely unacceptable. [Interjections.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Hon Minister, would you please withdraw that word?

The MINISTER OF MINERALS AND ENERGY: I withdraw the word.

The specific issue that were raised by the hon member in relation to Eskom, for instance, is: Why focus on the central region? Eighty-seven percent of national domestic debt is in this area. It is, therefore, a major source of concern for Eskom. What about similar deals elsewhere?

Eskom has not said that it will not discuss the matter with anybody. Clearly Eskom will apply its mind so that it does not encourage a culture of defiance regarding people who have no cause. The people of this particular area are victims of the likes of Davidson. That is why Eskom was willing to talk. But if others wants to talk, it has to be proven that they actually have the kind of problems that have forced Eskom to deal with this issue in the manner in which it has done in the central region.

I want to thank Mr Lucas for his encouraging words. I also want to assure you that within the month of June we will announce the nuclear waste management policy. It is on its way to Cabinet, and there will be an opportunity for this House also to deliberate on that.

I know members are concerned about their electricity tariffs. There are going to be ongoing discussions between us, the NER, Eskom and the Department of Public Enterprises. I am also aware that Eskom is overstretched in some way, but we clearly do not think that the poor have to bear the brunt of some of the challenges that we face in the energy sector through Eskom.

A lot of encouraging words have been spoken, especially towards PetroSA. We appreciate that encouragement, as PetroSA is a new institution. It is already doing very well, but it does have challenges, including its own internal agent provocateur, as you have seen. We need to investigate the kind of people that we have in that institution who could be causing problems for us, so that appropriate action can be taken.

Comrade Ngcobo … usirhabulisile, maqabane, ngomba we-nuclear. [Comrades, Comrade Ngcobo has sensitised us about nuclear issues.] He gave us a lot of information … enxalenye yalo ndingaluqondiyo kakuhle … [… part of which I do not quite understand …] but still this shows you the quality of the people that we have in the ANC. [Applause.] We appreciate, Comrade, the amount of time you took to take us through the issues.

Comrades also raised a lot of issues around the question of small-scale miners. We do have quite an extensive programme that is evolving in relation to small-scale miners. Some of the programme initiatives that we have in that regard include our kaolin processing plant and ceramic product production in Ndwedwe, KwaZulu-Natal, our coal and brickmaking project set in Indwe in the Eastern Cape, our dedicated diamond processing plant in the Northern Cape, and the full implementation of the Phuthaditjhaba sandstone project and development of a slate quarry beneficiation facility at Gopane in North West province.

So, comrades must be assured that we are dealing with this issue, and we are very serious about it. Some comrades have also been concerned about our strategy for iron ore. I just want to emphasise that we intend to keep two projects, as far as iron ore is concerned. We think that it is critical for job creation. For beneficiation, especially, it is Coega, as a port, and we think that it is also healthy for competition.

As far as manganese is concerned, we are not opposed to the third operator in manganese. We are also expecting much more and intense BEE in this sector. We also are expecting greater value addition. I do want to congratulate Total and Caltex, who are new companies that recently have announced partners as far as BEE is concerned. They have brought a variety of partners into their mix and we welcome those new partners who are also going to be players in the liquid fuels. I am sure Maurice is very happy that the work that they started is bearing so much fruit in this industry.

Comrades, I also want to address myself just quickly to the issue of staffing within the department, and the fact that we need as many resources as we can to address that. This is why you see that in our budget there is quite a big amount set aside for professional services, in particular in the area of mining. The professional services are also for rehabilitation work, which, as you know, is very specialised work, and we tend to use outside persons to do that work.

I once again want to thank the workers for the continued and valuable contribution and co-operation that we enjoy, in particular NUM. I also want to thank the actors in the industries, because even when we disagree, we have found a way of disagreeing so we do not compromise the work that we need to do for the people of South Africa. Of course I want to thank my colleagues, my staff in particular, for never sleeping on the job. They are effective, and they work very hard. I also want to thank you, Essop. Thank you. [Applause.]

Debate concluded.

                      UNPARLIAMENTARY LANGUAGE

                              (Ruling)

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon members, I now need to give a ruling. During the debate on the implementation of the floor- crossing legislation on Thursday, 10 April 2003, the hon the Minister of Defence raised a point of order, regarding a remark made by the hon Mr J Selfe, with reference to the Premier of the Western Cape, Mr M C J van Schalkwyk. I undertook to study the Hansard, and to rule on the matter at a subsequent sitting of the House. Having now had an opportunity to study the relevant Hansard, I wish to rule as follows. The contested remark was the following:

He is a puppet premier: the useful idiot whose job it is to deliver the votes to the ANC, that the ANC itself cannot get.

[Interjections.] Order! Had the remark been addressed to a member of this House, it would have been regarded as unparliamentary and the member would have had to withdraw it as, even given its historical origin, the remark is derogatory. However, Mr Van Schalkwyk is not a member of this House and therefore the remark does not have to be withdrawn.

During the debate I reminded hon members of the Speaker’s appeal for moderation and the use of moderate language. In general terms, I would like to repeat that appeal. Thank you.

                         APPROPRIATION BILL

Debate on Vote No 7 - Government Communication and Information System:

The MINISTER IN THE PRESIDENCY: Thank you very much, Chairperson. [Interjections.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Order, hon members, please. Those who are leaving, will you leave quietly without distrupting the proceedings in this House. Order!

The MINISTER IN THE PRESIDENCY: Chairperson, hon members, may I, with your permission, Chairperson, welcome two representatives from the multipurpose community centres who are present here today with us. They are Mr Steven Magagula from the Matsamo MPCC in Mpumalanga and Mrs Nombulelo Majova from the Ipelegeng MPCC in Soweto, Gauteng. They are joining us here for the debate today. [Applause.]

Five years ago, with its first budget debate in this National Assembly, the Government Communication and Information System was launched.

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon members, there can be only one speaker. Could I please insist on having some order. Thank you. Hon Minister, proceed.

The MINISTER IN THE PRESIDENCY: Its task was to become the communication agency of a government leading a society undergoing reconstruction and development.

Its task was the antithesis of what had been known as ``information’’ in the apartheid era. It was proactive instead of defensive, economical rather than spendthrift, soundly accountable instead of corrupt, transparent instead of secretive. It was a totally new era in information, in line with the democratic norms accepted by the nation in 1994, building on the first moves out of the information morass immediately following our new order.

Five years later it is instructive to look back to the vision that informed the setting up of the GCIS, so that we can measure what progress has been made and what challenges remain. That vision was embodied in the report of the Communications Task Team, which completed its work in 1996.

The directions Comtask mapped out and the values it proclaimed are still our guide. Among the matters that Comtask recommended for urgent implementation were the setting up of a Media Development and Diversity Agency and a strategy for integrated international marketing.

Although it took longer than initially envisaged, the fact that these two agencies now exist and are working to promote communication objectives of reconstruction and development can be counted as a major achievement and a cause for pride. They are significant milestones in our march to a healthy and effective information system in a democratic order. It is a great pleasure that the first chairperson of the board of the MDDA, Ms Khanyi Mkonza, is present with us today. Welcome!

The vision that must guide us in assessing what has been done and in measuring the challenges that remain is that of a nation of informed citizens actively participating in improving their lives and the wellbeing of their society; of a society in which the rights of freedom of information and expression are enjoyed concretely by all; of a country which has the informed respect of the peoples of the world.

That vision translates into strategic priorities for Government’s communication agency: ensuring effective government communication that empowers citizens to become agents of change; helping democratise the communications environment, broadening access to the means of acquiring and imparting information and ideas; and improving South Africa’s image in the world.

Addressing our legacy of imbalances in access to the means of communication is a complex and intricate process. Amongst these is the transformation of the marketing and advertising industry. The GCIS, together with the Department of Communications and the Department of Trade and Industry, took up the challenge which the parliamentary Portfolio Committee on Communications issued to Government and the private sector to work together to bring about change in an industry which has a critical role, not only in helping citizens engage with the marketplace, but also in shaping our conceptions of ourselves as a society.

The three departments have finalised a report which will serve before Cabinet with proposals for the development, in consultation with the industry, of a framework for transformation in line with Government’s strategy for broad-based empowerment.

Recently, representatives of industry bodies and Government together took part in a ceremony for the signing of a values statement expressing a joint commitment to the achievement of a marketing, advertising and communications industry reflective of our democratic society.

A process that began amidst considerable mistrust and fragmentation has achieved a remarkable degree of consensus on the direction and pace of change needed. Preparations are under way for a mid-year plenary meeting to review progress and set benchmarks.

Exactly one year and one day ago this House adopted the Media Development and Diversity Agency Bill, as ``one small but significant contribution to the task of translating the aspiration of freedom of expression into actuality’’.

The President appointed the MDDA board in December, after work had been done to consolidate the funding commitments by the media owners, some of whom have shown exemplary support.

Since its first meeting in January the board has moved in a purposeful way and set itself a timetable which will put it in a position to invite applications for support by August. It will therefore begin providing support to community and small commercial media projects by the end of this year.

The GCIS has given all the support required by the MDDA, especially the kind of practical administrative support that is critical in the initial start-up phase. Both the R3 million set aside for the MDDA in the GCIS budget for last year and the R7 million for this financial year have been transferred to the MDDA.

The GCIS is also facilitating MDDA interaction with other Government departments - in particular the Department of Communications - and parastatal agencies, so that it can draw practical support from their relevant programmes.

Compared with the start-up of similar agencies, I believe the MDDA is moving with commendable speed under the guidance of its chairperson, reflecting the commitment of the board and stakeholders to meeting the imperatives of media development and diversity in South Africa. This diversity is cardinal to our success as a democratic society in which the people are empowered to make their own decisions on matters of the day.

The establishment of the MDDA, and the process towards the transformation of the marketing and advertising industry, are pointers to progress in implementing strategic priorities identified by Comtask.

In the first nine years of our freedom - and the five since the GCIS was established - the tide has turned. The scene has been set for significant further improvements in ensuring that our attributes as a country are appreciated in full measure.

Hon members will by now be aware of the start of the International Marketing Council’s Brand South Africa campaign. The Chief Executive Officer of the International Marketing Council, Yvonne Johnston, recently briefed the Portfolio Committee on Communications on this campaign. The IMC itself is another good example of state-private co-operation.

As with all that we strive for, we start from the premise that effective and lasting achievement of national objectives is possible only when we unite in action. Therefore the work to improve our country’s image in the eyes of others begins with doing whatever we can as South Africans to live the hope and refreshing possibilities that our country offers to the rest of the world.

The period of comprehensive and thorough planning has come to an end. As the campaign begins to roll out it is attracting support by the week from individuals and organisations that seek to add their voice to the message that ours is a country alive with possibility. As it gathers strength we will no doubt be hearing less and less from those South Africans who feel compelled to present our country in a negative light, unlike the tourists who come in increasing numbers; the ratings agencies that upgrade their assessment of our economy virtually every year; and the investors eager to buy our Eurobonds and set up shop in South Africa.

The GCIS has also begun more systematically to develop relations with our counterparts in Southern Africa, in particular assisting the governments of Mozambique and Tanzania in initiatives to strengthen their communication capacity while learning from their considerable experiences. The department also works with the Department of Foreign Affairs on various initiatives relating to the AU, Nepad and SADC.

The most critical challenge which Comtask posed for the creation of a new Government communications and information system was to strengthen the capability of Government to communicate its policies to the people. Two obstacles stood in the way: a lack of co-ordination and focus in Government communication; and a legacy of severe imbalances in access to information.

Government and the people are being brought closer together in a number of ways. The roll-out of 60 multipurpose community centres, MPCCs, to each district in the country is now more than halfway done - 37 are operational. It is quite clear that these one-stop centres for Government information and services are making an enormous impact on the lives of those they serve, mainly people who previously had little or no access to Government services. For such people the cost of transport, even to do something as simple as getting a form to register a child’s birth, was prohibitive and in many cases it still is.

For the next phase we should hope to work towards having an MPCC with a one- stop Government centre in every municipality. How to achieve this is something that is being worked on by the Interministerial Task Team on Integrated Service Delivery. We are also convinced that this is an initiative which can benefit from the participation of our social partners, and we will be taking it to the Growth and Development Summit for discussion.

A taste of things to come will be seen in the launch of the first phase of the Batho Pele Gateway Project of the Department of Public Service and Administration in the coming months. Six of the initial entry points to the Government Batho Pele Gateway will be located in MPCCs. That includes the Tombo MPCC in the Eastern Cape, the first such to be launched in 1999-2000.

Direct interaction between the executive, in all spheres, and the public has been increased by the rapid growth of the imbizo programme since it was initiated by President Mbeki in the Limpopo province in April 2001. Public enthusiasm for the opportunity to interact directly with the executive has seen the National Imbizo Focus Weeks expand from 170 events in October 2001, to 300 in April 2002, 320 in November 2002 and over 350 in April 2003.

If one adds to this the imbizo visits to provinces by the President and Deputy President and the almost continual outreach programmes of the provincial executives, it is clear that izimbizo are becoming central to Government communication, and an essential feature of the participatory democracy taking root in our country.

To cope with the challenge of processing concerns that are not immediately dealt with as they are raised, the GCIS is developing an information management system to improve follow-up and feedback. On the other hand, the direct interaction of the executive and the public through imbizos is already making an impact on governance. This affects both the detail of implementation and the direction of policy itself. For example, the experience of imbizos helped shape various important initiatives - to cite some examples: to introduce an echelon of community development workers into the Public Service; to speed up the programme for the improvement of rural roads; to introduce the ``Know your rights’’ campaign on water services by the Minister of Water Affairs and Forestry; and to facilitate the decision to introduce Public Works programmes in the Bekkersdal area in Gauteng.

Also, part of the effort to provide all South Africans with access to information about their Government has been the shift towards media and modes of communication which research shows to be more effective in reaching wider sections of the population.

An example is the wave of publicity following the President’s state of the nation address. Whereas in 2002 newspaper advertisements absorbed 70% of the cost, this was 32% in 2003 - the media used has shifted towards radio and other forms of direct distribution. Part of the shift was a live link- up with 48 community radio stations for the President’s address; live broadcasts through the ``Big Screen’’ programme to 58 community-based imbizo events at MPCCs and other satellite points. In consultation with organisations representing people with disabilities, information about the programme of action is being disseminated in Braille and on tape.

Parallel to these efforts to extend access to Government information has been attention to the other side of the coin highlighted by Comtask - more co-ordination and focus in government communication. This has been pursued by consolidation of the integrated Government-wide system of communicators who are clustered to match the clustering of Government.

Steps are also being taken to enhance communication capacity in the local sphere of government, following the first-ever conference of local government communicators hosted by Salga in June 2002 with the assistance of the GCIS.

Strategic guidance of Government communication by Cabinet has been strengthened in two ways. The first is more active oversight by Cabinet committees of the implementation of cluster communication strategies as part of their general oversight of the work of clusters. The second is the continuation of Cabinet’s discussion of current affairs also from a communications perspective, a practice whose introduction I noted during last year’s debate on the GCIS Budget Vote.

The positions adopted by Cabinet on all matters of public interest are communicated not only through the regular statements issued and briefings given after each Cabinet meeting, but are also disseminated by the GCIS more widely through Bua Briefs to opinion-makers in the private sector.

Though there is still a long way to go, clear progress has been made. At the heart of all the communication campaigns have been the themes of partnership and shared responsibility - Letsema and Vukuzenzele - in order to build on the progress made as a foundation for accelerated implementation.

Trends in public opinion compared to previous years suggest that such communication is consistent with the public mood. In turn, this matches the evidence of the impact that Government programmes are making on the lives of South Africans.

As such, the empty vessels who make noise about our people being worse off now than under apartheid serve not only to expose their ignorance, but also their disgraceful yearning for a past that shall never return. That, we should remember, was a time when the majority of the population was locked out of every significant aspect of South African life.

Since the Sanef-Cabinet Indaba two years ago much has been done to develop the relationship between media and Government in ways that should lead to a better understanding of Government policies and programmes. No doubt the recent establishment of the Presidential Press Corps will make a further contribution in that direction. Already, numbers of briefings have been held which have helped to throw light on important issues and strengthen communication between the Presidency and the media.

This has been a brief overview of work that has been done by the GCIS over the past five years, and the past year in particular, to achieve the strategic priorities it was assigned by Cabinet in the light of the Comtask report. In doing this work the GCIS made use of the public funds appropriated for this purpose by this House.

Taking into account the R1,6 million in funds already committed during the financial year, which the National Treasury has been requested to roll over, the GCIS effectively used all its allocated funds. Should National Treasury not approve the roll-over request, the GCIS would have spent 99% of its funds.

The budget for the financial year 2002-03 was R153,7 million - including allocations to the IMC and MDDA - rising to R176 million in 2003-04. That compares with R60,2 million for the first year in 1998-99. For this increase, reflecting the fact that the GCIS has been entrusted with additional functions, we should thank the National Assembly.

The DEPUTY CHAIRPERSON OF COMMITTEES: Hon Minister, your time has expired.

The MINISTER IN THE PRESIDENCY: What’s that?

The DEPUTY CHAIRPERSON OF COMMITTEES: Your time has expired.

The MINISTER IN THE PRESIDENCY: No. Please, Chairperson, a Minister must have the right to finish his input. [Interjections.]

What has been achieved during these past five years to improve the communication environment; to improve South Africa’s international image … [Interjections.] An HON MEMBER: Chairperson …

The DEPUTY CHAIRPERSON OF COMMITTEES: Unless, Minister, you want to take from the latter part of your time?

The MINISTER IN THE PRESIDENCY: I shall do so, Chairperson.

The DEPUTY CHAIRPERSON OF COMMITTEES: I’ll give you the five minutes and we’ll reduce that time.

The MINISTER IN THE PRESIDENCY: Yes, you will do so.

The DEPUTY CHAIRPERSON OF COMMITTEES: Yes, proceed.

The MINISTER IN THE PRESIDENCY: You will do so, Chairperson. [Interjections.]

Do you still have something to say?

The DEPUTY CHAIRPERSON OF COMMITTEES: Proceed, hon Minister. [Interjections.] The MINISTER IN THE PRESIDENCY: No, sit down, man. You are just like a jack- in-the-box. Ufuna ntoni wena? [What do you want?]

… to strengthen Government communication and to broaden access to Government information has played a part - small, no doubt, but significant

• in contributing to the general progress in the lives of millions of South Africans that reflects the fact that indeed the tide has turned. This is increasingly being recognised by informed opinion locally and abroad.

With the funds allocated for the year 2003-04, the GCIS intends to build on the progress made towards the realisation of the vision of a society of informed citizens who were their own liberators and are now actively engaged in changing their lives for the better - building a people’s contract for a better South Africa.

In this achievement, Parliament, and in particular the Portfolio Committee on Communications, has been an invaluable partner and guide, and I should like to commend the deft and dedicated way its chairperson, the hon Nat Kekana, has conducted himself, sometimes in difficult circumstances and amid heavy attacks from certain quarters, now that he is moving on to new pastures. I hope they are as nice for him there as it was here. We wish him well as he deploys his considerable skills, though still in the cause of communication.

Lastly, I should like to place on record my thanks to the GCIS for the work so well done, and particularly to the CEO, Mr Joel Netshitenzhe, for his indefatigable efforts.

I take this opportunity to commend the GCIS Budget to the House. I do so by noting the remark by Bacon that Knowledge is power,'' adding the thought thatDemocratic power is knowledge’’. Thank you very much. [Applause.]

Mr N N KEKANA: Thank you hon members and thank you, Minister, for those words of encouragement.

I rise to support, on behalf of the ANC, the budget of the GCIS. I am also speaking at this podium for the last time in my capacity as the Chairperson of the Portfolio Committee on Communications and a member of Parliament. I have submitted my letter of resignation to the Speaker and to the Whippery of my organisation, the ANC.

I believe that this is an appropriate juncture at which to make the transition from the public sector to the private sector. I have been a member of Parliament since 1994 and I will forever value the experience I have gained and the honour I have had to be able to contribute to the building of such a vibrant democratic institution as our Parliament.

Whilst a lot still needs to be done to create greater access to Parliament for all South Africans, especially those in rural communities, I am proud to have been part of a hard-working and committed team to make a difference and bring about fundamental changes to the lives of our people. It is with regret that I will no longer be part of these dedicated cadres of our people. But, it is also with eagerness and anticipation that I look forward to a new challenge and to continuing to make a difference for a better life for all in my new position.

I thank you all for the camaraderie you have shown me over the years and for everything you have contributed to my growth and development. In this Chamber we have had moments of friendship and animosity, joy and sadness, elation and disappointment, but mostly we have shared moments of victory. We have sung and toyi-toyied. Every debate we have had in this House and every piece of legislation we have passed through this House has helped to create a better life for all South Africans.

What we have been doing here has been to push back the frontiers of poverty. I am very proud to have been part of such a team, and wherever I go I have no doubt that we will continue to work together as we have a common goal, that is, the deliverance of a democratic, nonracial, nonsexist and prosperous South Africa. For the record, let me state that I am neither leaving politics nor being forced for whatsoever reason to quit Parliament. My experience here has been invaluable and I will be forever grateful for what I have learnt from it and the humility I have gained through it.

However, having been here since the first sitting of our democratic Parliament in 1994, the decision to leave, nearly 10 years on, comes simply in the normal course of reflection upon one’s life and seeking new challenges, and needing to contribute to transformation in another arena.

We all have the responsibility to build a photo album which future generations can page through, reflect upon, learn from and be inspired by. Future generations will fill in the gaps left by our photo images and they might sometimes wonder why certain decisions were taken. It is therefore our responsibility to explain our communications and messages for the benefit of generations to come.

The GCIS, under the capable leadership of its CEO, Joel Netshitenzhe, and guidance by the Minister in the Presidency, Comrade Essop Pahad, has made great strides in simplifying such messages and building photo images of our own experience as a democracy.

It is important that our portfolio committee, in particular, continues to raise issues pertaining to the imagery captured by photographers, and reporters in newspapers, as well as the coverage on radio and television. Neither should we shy away from creative criticism nor hesitate to criticise where criticism is necessary. Constructive criticism can help and guide in nation-building. It can be an important yardstick of a healthy democracy. That is the lesson I have learnt from being in the communication industry over the past 23 years.

Like the epigram which says, a picture paints a thousand words'', the wordOceania’’ might ring a bell. If you are a soccer fan it might remind you of the evaporation of a dream, the hosting of the 2006 Soccer World Cup by South Africa. A certain Mr Dempsey, by abstaining, snatched the hopes of the entire African continent to host this prestigious event for the first time in the history of the beautiful game. As we once more attempt to host the World Cup, we should again be mindful of the world around us.

We might not know what happened in the Dempsey saga, but please allow me to suggest an explanation. His attitude to the African continent was no different from that of his colonial ancestors to the indigenous peoples of Oceania.

The leader of the opposition, hon Tony Leon, displays from time to time a similar attitude to the continent of Africa as that of Dempsey. For example, his selective quotations and distortions of the President’s address to the All-Africa Editors’ Conference, convened by SANEF, is an attempt to sustain the negative coverage of the African continent. If you read the President’s speech at this conference, there was nothing that suggested, as Mr Tony Leon wrote in the Cape Times, that the President was taking a ``swipe at his criticism and questions their intellect.’’

The President’s speech, to Mr Tony Leon’s dismay, was welcomed by the participants. The speech was a responsive way to challenge African journalists and editors to improve the quality of journalism on our continent.

The President suggested that the South African media has a responsibility to report Africa to the South Africans, and carry out this responsibility as Africans. He said that complaints from other African journalists about the distorted reporting of the SABC about their own countries does not mean that those reports should not be critical, but rather that they must be truthful and not false and uninformed.

Embedded journalism, as experienced in the intervention in Iraq, is nothing new. You just have to read the writings of Chomsky and others to understand how journalism has been used as part of a military strategy to win the hearts and minds of people. The overwhelming scale and ruthless execution of the US-led military strategy, accompanied by the embedded propaganda, no doubt helped to achieve the objectives which Business Week termed the ``computer combat’’. The biased news bulletins will surely make Goebbels celebrate in his hellhole the implementation of his doctrine of naked propaganda.

What embedded journalism means to Sky, the BBC and CNN is nothing other than the furtherance of their countries’ national interests, as defined by the military commanders who led the invasion of Iraq. African journalists must not simply follow the editorial line of CNN and the BBC. They must be proud to be African, celebrate the self-worth of the African people and must have no hesitation about advancing the interests of the African continent and her peoples.

Recently I visited Australia to represent our Parliament in an important discussion hosted by the Commonwealth Parliamentary Association and the World Bank. Our host, Australia, did everything possible to make our visit productive and memorable. The 10 parliamentarians forming the CPA Study Group on Parliament and Media agreed to and recommended a reform programme to legal and institutional obstacles for the development of a fully informed society through an open and accountable parliament and a responsible media.

I firmly believe that, if implemented by all members of the CPA, the work done by the study group will go a long way in improving relations between the legislature and the media. However, this is not why I am raising the Oceania issue in this debate.

My experience in Australia, one of the countries of Oceania, left me somehow bewildered and desperately searching for answers as I was left to ponder what the plight of our people in South Africa could have been had the ANC not been formed to challenge apartheid and colonialism in our country.

In Perth I could see no more than five indigenous Australians in a group walking the city streets. Moreover, the only ones that I saw were visibly intoxicated and eventually stopped by the police to produce their identification documents, which reminded me of the days of the pass laws in South Africa.

What has happened to the indigenous people of Oceania is best captured by the photography presented in the publication titled Portraits of Oceania. In the publication, Brenda L Croft says something that is universally true, especially in the context of a colonially influenced media:

Photography is about memories, both personal and collective, about capturing'' anddislocating’’ a particular moment in time. Early photographs purported to be creating a historic record, though many were often falsely staged.

Having been raised within a Methodist/Wesleyan religious tradition, it came as a shock to me to discover that many of the photographs in the publications are ascribed by one of the colonial photographers to the influence of the religious vision of the Wesleyan missionaries. Wesleyan missionaries, such as a certain George Brown, photographed dehumanising images of the people of Oceania, and contributed to the humiliation of the nation.

The degradation of women and the undignified manner in which the colonial photographers captured images of the indigenes distorted the true-life experiences and stories of the people of Oceania. The blatant racism and sexist stereotypes and attitudes of the colonial photographers were also duplicated right here on our continent. What we ourselves have raised in many debates in this House about the state of the media in our country is no different from the what - Portraits of Oceania is illustrating.

The people of Oceania were treated no differently from the animals on display in a zoo. Incidentally, the Nazi killings were also motivated by the notion that people are animals and therefore there must be continuous conflict to ensure elimination of the weakest.

Like the Saartjie Baartman experience, we were treated in exactly the same way, with the same attitude and same racial and sexist stereotypes. However, the difference between the people of Oceania and us is that we were able to challenge colonialism before it could destroy us, undress us and take away our dignity. A human being without a soul, without dignity, self-respect and sense of self-worth is no different from an animal.

We have a responsibility to make a paradigm shift to fundamentally change the apartheid colonial mind-set. I continue to urge the media and the communication sector in our country to do some serious soul searching and to cleanse itself of the remnants and influence of our apartheid and colonial past. We cannot continue to read and see reports about ourselves that seem to have been compiled by tourists.

This tourist journalism, including the denigrating profiles and mercenary portraits of our country and the African continent, cannot be left unchallenged. It is our responsibility to be critical of media coverage that degrades our people and paints distorted pictures of our country and the African continent.

The tendency to prevent us from articulating our criticism of the media is, according to one of the publication’s contributors, Michael Hayes, reminiscent of the Senator McCarthy trials in the US in the fifties. He observes that there is a vocal group that claims that such arguments under the pretext of political correctness censor free speech and individual rights.

The leader of the opposition and his followers belong to this small group in our country. It is our responsibility to raise media-related issues openly without fear of prejudice or contradiction, or indeed the often pronounced accusation that we are attempting to suppress media freedom in our country. This Parliament has shown the way. Our discussion and subsequent intervention has led to a healthy and robust debate within the advertising and marketing sector. The sector’s recently issued value statement represents a breakthrough in addressing racism and the negative influence of our past. We are confident that the industry has shown a commitment to change. We are also aware that the transformation challenges are huge and require industrywide common purpose and a united front for change.

Individual marketers, and this includes Government, must follow the lead of the consumers and together with advertising agencies and the media reach out in search of a South African soul and identity. Our media and communications must capture our values, morals and experiences as Africans living on the great continent of Africa.

For those who might not know, Comrade Walter Sisulu called for the freedom of the airwaves in the sixties at the height of apartheid and oppression and suppression of all views different from the racist mind-set. By doing this, he was following the tradition of all the leaders of the ANC who came before him, including the founder members who were themselves journalists.

We should be grateful that we had leaders like tata Walter Sisulu who sacrificed everything and helped build a long-lasting freedom monument, free of racism and segregation. I am proud to belong to an organisation led by comrade, leader, isithwalandwe [recipient of ANC award], tata Sisulu. The blood of the ANC runs in my veins and I will always be dedicated to this organisation.

One of the first things the ANC taught me was not to take our people for granted, to respect them and always to be sensitive to their views and needs. It is a lesson that I will cherish and nurture forever.

Tata Sisulu has been a model leader. I had the privilege of experiencing his guidance and humility when I worked under his leadership in the 1994 elections campaign. I will always value those moments.

It has been a great honour for me to be a member of this House. I would like to thank my family and my kids for putting up with the long hours and instability that comes with the work of being a parliamentarian. I would also like to thank everyone for the support and friendship over the years. I wish all of you good health and best wishes for the future. Also, to the GCIS and its leadership, it is five years in three days’ time and all of us must agree that the GCIS is a dynamic and efficiently run organisation, therefore all of us must support this Budget Vote. The ANC supports this Budget Vote and I thank you very much. [Applause.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Colleagues, Parliament has had the benefit of the talents and the dedication of the hon Kekana. I am certain that you will join me in wishing him well in whatever venture he undertakes. Hamba kahle! [Goodbye!] [Applause.] Mr V C GORE: Deputy Chair, allow me to begin my speech today by saying a sad farewell to one of my colleagues in the portfolio committee. The chairperson, Mr Kekana, will be leaving this House in the near future to take up a position at Telkom. He has ably led the committee through potentially troubled waters of the broadcasting and telecommunications industries. The hon Kekana has had to chart a very difficult course between dogmatic and outdated policies of the Government and the legitimate needs of the South African consumer and industry. Despite some very bruising and robust encounters, the DA and myself would like to thank the hon Kekana and wish him well in his new position.

A notorious politician once remarked that ``people will more easily fall victim to a great liar than to a small one’’. The role and existence of the GCIS has always been controversial and hotly debated. On the one hand, there is the legitimate need for citizens of this country to receive and have access to reliable information about their Government, so that they may become active participants in their own futures and, more importantly, to hold their elected Government to account. On the other hand, there is a justifiable fear that this function of the Government may be abused to the extent that it simply becomes a propaganda machine, spin doctoring a few successes by ignoring real issues and dismantling the critical wall in democracy between the ruling party and the state.

Hon members, the CEO recently told the portfolio committee that the role of the GCIS was to correct the mistaken view that the poor are worse off now than they were during the apartheid years. South Africans are expected to accept, therefore, that the role of the GCIS is to spend R176 million employing over 300 people, indoctrinating people into believing that the shack that they are living in today is better than the shack that they were living in prior to 1994 … [Interjections] … that it is acceptable that crime has stabilised and that HIV does not cause Aids. Despite what the GCIS says, the prevalent problems confronting this country are poverty, the HIV/Aids pandemic and crime.

The facts speak clearly for themselves. One out of three South Africans is unemployed. Seven million people are out of work. Black unemployment has risen from 46% in 1995 to 55% in the year 2001. Billions of social development rands are rolled over unspent from year to year, while two thirds of existing child support grants go unclaimed. Hundreds of thousands of South Africans are dead and millions more are to die from HIV/Aids … [Interjections.]

An HON MEMBER: What are you doing for those people?

Mr V C GORE: It is simply not good enough to explain shallow claims of no delivery and increasing poverty on partial data and focus on single points, as Mr Netshitenzhe wants this country to believe. Even the Human Rights Commission, in its reports on economic and social rights, unequivocally stated that the ANC-led Government has failed on its 1999 election campaign promise to deliver a better life for all. The ANC’s flawed counterarguments and ridiculous assumption that the social wage, tax relief and social grants compensate for lack of delivery simply does not hold water. [Interjections.]

An HON MEMBER: Uya kukubetha uThixo. … [Ngokungavakaliyo.] [God will chastise you … [Inaudible.]]

Mr M M CHIKANE: Mr Chairperson, on a point of order: I would like to know if the hon member is prepared to take a question?

Mr V C GORE: I will answer if I get time.

The DEPUTY CHAIRPERSON OF COMMITTEES: No, that’s not a point of order.

Mr V C GORE: What this country needs and what this country demands are jobs. Jobs to feed, jobs to educate and jobs to house.

As this country prepares itself for an election next year, the GCIS will play a critical role in delivering the facts to all South Africans, and not opinion. The role of the GCIS is to be the messenger and not to become the interpreter and manipulator of the message to achieve a specific public image. Misinformation, disinformation and no information has no place in South Africa’s democracy. [Applause.]

Ms M R MORUTOA: Hon Deputy Chairperson, hon Minister, hon Deputy Minister, hon members of Parliament, I dedicate this speech to all our late founding leaders of the ANC such as Dube, Sol Plaatjie and Govan Mbeki, who was the editor of the New Age.

If you care to know, most of the ANC leaders were editors of newspapers and journalists. These comrades were all journalists who influenced this movement so that we can be critical of the need for information dissemination to the people on the ground. This shows how committed the ANC is to freedom of speech and access to information, unlike the opposition parties who are making it something fashionable nowadays.

It was the apartheid regime that removed advertisements and government notices from all progressive newspapers like the New Age. As the ANC, we need to look back seriously and think carefully about where we come from. Transformation today is happening at such a fast pace. Sometimes we need to reflect carefully upon our past and think of all the milestones we have gained through our struggle for liberation for our fellow South Africans. When I do this, I cannot help but commend the ANC for its leadership and vision when it launched the Freedom Charter in 1955.

The ANC has always stood for freedom of expression and for access to information. In 1956 the assertion of freedom of expression and access to information in the Freedom Charter inspired the women of South Africa to network and organise themselves. They disseminated information across the length and breadth of the country for women to protest against the dreaded pass laws. On 9 August of that year this culminated in 20 000 women marching to Pretoria to submit a memorandum to the then prime minister Mr Strjdom, in which they expressed their refusal to carry passes. The placards that were carried by the women were handwritten. The slogans and photographs gave a message to all South Africans and this gave birth to the slogan ``wathint’ abafazi, wathint’ imbokodo. Uzokufa’’.[If you strike the woman, you strike the rock. You’ll die.]

When we reflect and look back nearly 10 years upon what we inherited from the apartheid state in terms of the state information and propaganda machinery, we will instantly see what the GCIS had to go through in transforming this machinery. The South African Communication Service, Sacs, the information machinery of the former apartheid regime, denied the public access and quality information from Government. Its lifespan eventually came to an end. The long-awaited transition of the Sacs into a body to be named the Government Communication and Information System, began. The GCIS drew its mandate from section 16 of the Bill of Rights, which guarantees all citizens freedom of speech. The GCIS was to focus on broad priorities such as establishing a coherent Government system and the development of an information network to service grass-roots needs; hence, in the spirit of pushing back the frontiers of poverty and focusing on making the lives of South Africans better, the ANC-led Government, through the GCIS, established a number of multipurpose community centres in different provinces.

This was meant for communities to access information on services provided by Government departments so as to make it convenient for ordinary people in our communities to apply for birth certificates and identity documents. This will also enable South Africans to access child grants and pension grants more readily. Some of the centres assist their clients to fill in forms for the Unemployment Insurance Fund, the UIF, so that they are registered as job seekers.

To name just a few of these centres, there is one in Gauteng, the Ipelegeng, and Mamelodi, and Namahadi in the Free State, Lerethlabetsi in the North West province, and Bhamshela in KwaZulu-Natal. In Sedebeng the GCIS has gone into partnership with a film resource unit. The two have embarked on implementation of the MPCC’s audiovisual education initiative. This is aimed at empowering two multipurpose community centres in Sebokeng and Lebotlwane for disseminating pertinent information by projecting audiovisual material.

The GCIS, through the MPCCs, conducts awareness and educational programmes on HIV/Aids programmes. However, we also need to ensure that these MPCs will be sustainable over the long term.

Sekela-sihlalo, ukuba abanye bethu kule Ndlu yoWiso Mthetho banokuyikhumbula kakuhle into esasiyenziwa ngurhulumente wocalucalulo ngeminyaka yoo-1956, kwakukho amaqumwana awayebizwah ngolokuba zii`mobile unit’ ezazihamba kulo lonke eli loMzantsi Afrika, besinyanzela ukuba sithabathe amapasi. Into eyayisenzeka ke apho kukuba abantu abakula maqumrhu bathatyathwa kwindawo eyodwa, apha kule ndawo eyayibizwa ngelokuba yiTransvaal ngelo xesha.

Phaya kweliya lizwe lakwaXhosa bashiya bemoshile abo bantu, ngenxa yokuba kaloku ulwimi ababelithetha lalingaqhelekanga, ukutsho ke ndithetha into yokuba babengavani ngentetha, ngoko ke amagama abantu babewathelekelela. Umzekelo waloo nto ngulo; ukuba igama lakho nguSontonga, babeza kulinqumla ke bona, ube nguSononga. Liya kuhlala linjalo ke ude uwushiye lo mhlaba igama epasini lakho linguSononga, ngenxa yokungavani ngeelwimi.

Ukanti naseRhawutini apho, kulaa ndlu ebifudula iyi`Native Affairs’ kwaNdaba Zabantu, eyona ndlu enkulu kwisitalato iBezuidenhout neMarket, yayisisiphithiphithi into ebisenzeka apho. Imitshato kunye neminyaka yokubeleka kwabantu yayingabhalwa ngokufanelekileyo. Kangangokuba, uya kufumana umntu olingana nam lo incwadi yakhe yesazizi ixela into yokuba uzelwe ngonyaka u-1962, nto leyo ethetha ukuba uba yintanga yomntwana olingana nalo wam wesithathu. Yonke ke le nto iqhagamshelana nobunzima oza kubufumana mhla ufuna ukubhalisela inkamnkam yakho, kufumaniseke okokuba ulusana kodwa ololupheleyo ebusweni.

Into ke eyayisisimanga kukuba sasingadibani nabebala apho. Bona babe neendawo zabo apho bangamiyo khona nasemgceni apho. I-GCIS iya lwandisa ulwazi lwabemi baseMzantsi Afrika, yenza impilo yabo ibe lula kakhulu.

Sekela sihlalo … (Translation of Xhosa paragraphs follows.)

[Deputy Chairperson, if other people in the National Assembly could remember exactly what the apartheid government used to do to us in the 1950s, there were small units called the mobile units, that travelled all over South Africa, forcing us to have passes. What would happen is that people who were employed in these units came from a certain area, which was called the Transvaal in those days.

This messed things up in the Eastern Cape because the language they spoke was unusual, that is to say that they did not understand one another, therefore they just guessed our names. One example is this: if your name were Sontonga, they would shorten it and call you Sononga. You would be Sononga on your pass until you died, because of a language barrier.

In the Native Affairs office in Gauteng - the head office at Bezuidenhout and Market Streets - it would be a commotion. Marriage years and birth dates were not recorded correctly. You could even find a person as old as I am with her birth date recorded as 1962, the same year my third child was born. This would later pose a problem when you had to apply for a pension grant, and you would find that you are actually a very old baby with wrinkles all over your face.

What is surprising is that we did not mix with the so-called coloured people there. They used to go to secluded places where they did not even have to stand in queues. The GCIS disseminates information to and about citizens of South Africa, and makes their lives easy.

Deputy Chairperson …]

… I would like to thank the chairperson of this committee, hon Nkenke Kekana, for the gracious way in which he has managed all the processes in this committee. He always allowed members to express themselves freely, although they had differences of opinion. In the end, all parties were able to reach consensus on issues that were debated. I would also like to thank Minister Essop Pahad and the CEO, Mr Joel Netshitenzhe, for their sterling work in transforming an oppressive apartheid propaganda machinery into a Government system that informs and services all South Africa’s citizens.

The tide has turned. With every year that passes we can see the visible fruits of hard work of the people in our Government. [Time expired.]

Ms S C VOS: Chairperson, the Inkatha Freedom Party would first of all like to say thank you, farewell, and offer our very best wishes to the hon Nkenke Kekana, the chairperson of the portfolio committee, for his friendship and his competent leadership of this committee. We are all going to miss you terribly, Nat. We have worked together for many hundreds of hours over the years, and we have had many challenging and tension-filled moments, over many very difficult pieces of legislation in which you have often facilitated constructive compromise. We really hugely appreciate your effort.

You are leaving us for Telkom, and there is no doubt that the knowledge you have accumulated in the nine years you have been with us is going to be valued. Hamba kahle, Nat. [Goodbye, Nat.]

Now to the Budget Vote of the GCIS. In any year before an election, opposition parties all over the world get nervous about and focus their attention more than usual on all government communication and information systems, whatever they are called. We are no different in South Africa. It is in the nature of politics that Government communication programmes are regularly stigmatised as propaganda, designed to enhance the popularity of the ruling elite.

It is regrettable that the IFP has had a serious example to hand, as evidence of such propaganda, and how an organ of state can, in fact, attempt to rewrite history and demonise its opponents. The South African Yearbook 2002-03 totally misrepresents the role of the IFP and its president during the struggle for liberation in our country. The views expressed are an insult to all members and supporters of the IFP, and they dishonour our dead, whose lives were sacrificed in our struggle for democracy.

It is truly tragic, nearly 10 years after the ANC and the IFP saw the need to work together and encourage national unity, and to strive to end the political conflict between our members, that such dangerous and blatant vilification of the president of the IFP, who happens to be a Minister of state in this Government, could be so blithely included in such an important document of record. We would like to hear from Minister Pahad how this came about, and what he intends to do about it.

The fiscus-funded outreach to voters, through a myriad of communication programmes, and the GCIS has six at present, will always be problematic in any multiparty democracy. Yet, at the same time it is obvious that any democratic government must communicate with its citizens, and it must attempt to ensure that all sectors of society have the widest possible access to reliable information about their government and its programmes. This is, of course, the brief of the GCIS, and in the five years of its existence, under the skilful leadership of its CEO, Mr Joel Netshitenzhe, there is no doubt that much has been achieved.

The IFP therefore supports this Vote. However, we continue to remind ourselves and the GCIS, as we have done previously, of the hugely sensitive nature of its task, and its critical importance to the development of democracy in our land. The key issues that the GCIS has identified, including giving greater direction to Government communications, raising the standard of Government communications, impacting on the communications environment in South Africa, and ensuring that the GCIS develops a set of core competencies which its communicators must possess, are all supported by the IFP.

Finally, I wish to personally praise the staff at the GCIS office here in Parliament, who are unfailingly helpful and who greatly assist me, and I am sure many of you, with pamphlets and other wide ranges of material that I need for my own constituency outreach. They are doing a wonderful job and they deserve our praise. Thank you.

Mrs W S NEWHOUDT-DRUCHEN: Deputy Chairperson, hon members of Parliament, the ANC supports the GCIS Budget Vote for 2003. Yes, we are still at work to make a better life for all our people in South Africa. In our ANC resolution, we note that communication plays a major role in deepening our democracy, promoting a culture of human rights, and that it is a key pillar in the transformation of our country.

The ANC-led Government wants to make sure that all Government reports communicated to the people are clear and simple and distributed in a language that is understood by the people. Nation-building can only happen if Government and the people can successfully communicate with each other. Government’s communication and information system is part of this, and this means that they need to make life better for all South Africans in South Africa.

The legacy of apartheid resulted in many complaints from people at grass- roots level, stating that Government did not communicate with the people. There was no information about what Government was doing or saying, or what was going down to the people. For this the GCIS was established. The GCIS’s vision is to make an indispensable and widely valuable contribution to society and to work with Government by meeting Government’s communication needs as well as those of the public.

Where does the need for communication come from? When the President gave his state of the nation address, his speech also encouraged the public to participate in Government programmes, such as the volunteer campaign. Ministers then have briefings with the media to give more detailed information about their departmental programmes. Out of the President’s speech comes a national communication strategy, turning Government programmes into communication strategies.

Government also carries out research on the public’s information needs. An approach is then developed to provide the public with information which they can use to improve their quality of life while at the same time empowering them with skills and information on how they can stand up and use the information. It is important for our people to work together with our Government for a better life for all our people. In this report of the portfolio committee the CEO of the GCIS stated that the GCIS, together with members of the committee, knows that South African citizens must have the widest access possible to reliable information about the Government and its programmes via the media in forms that they prefer.

This is needed so that our people can become active participants in programmes in order to improve their lives and the world that they live in. In so doing they can hold the Government accountable. The right to freedom of expression, embracing the freedom of the press and other media, the freedom to receive and impart information or ideas, should become a reality for all South Africans. The CEO went on to mention that the peoples and countries of the world should have reliable and accurate information about the realities of our country, and the possibilities it offers.

This will therefore improve and strengthen partnerships with the GCIS for our own continent’s development and growth. South Africans should be able to have a framework through which they can join in the efforts to build those partnerships with the rest of the world. During 2001, there were engagements between the ANC-led Government and the South African National Editors’ Forum. Out of this engagement came the idea of the establishment of the Presidential Press Corps. This press corps is an opportunity for senior political writers to form a corps, whereby information and a greater understanding of the work of our Government can be obtained and disseminated.

The presidential Press Corps has weekly briefings, attended by senior members of Government, including the President, the Deputy President, Ministers and DGs. Off-the-record and on-the-record briefings are held. The facilitation of the flow of information to the public is done via these briefings. For improved access to information, there will be occasions for the members of the Presidential Press Corps to travel with the President, Deputy President and the Ministers, both within and outside South Africa.

The objective of the PPC is therefore to improve relations between the media and the Presidency, as the media appear to frequently get things wrong due to a lack of accurate background information. These briefings are designed to be both on and off the record so that at least background information can be made available to the media to facilitate better understanding. Since the Presidential Press Corps has been launched there have been various meetings, such as with Minister Zuma on the development in Zimbabwe, briefings by the Minister of Labour and trade unions in preparation for the GDS, and briefings by the President when meeting with religious leaders.

The GCIS is also tasked with the responsibility of meeting people, giving workshops on Government communications and listening to the needs of the people. Let me give one example. I recently had the opportunity to take part in one of the GCIS workshops during the constituency period last week. I was invited to give a presentation at Indaleni School for the Deaf in Richmond, KwaZulu-Natal. At the workshop, the GCIS had the opportunity to listen to the needs of the pupils at the school.

In time, I hope that the GCIS will make sure that those needs will be met, which does not only include making sure that they are able to obtain better education, but also seeing to the basic needs, namely information. The school, which includes a hostel, also has one tap for their water supply. They need more pipes and taps for their water supply. This is just for information’s sake.

I am happy to reply that the GCIS is making progress in making things more accessible to people with disabilities. The 2003 state of the nation address was for the first time published in Braille. The South African Blind Organisation has published the shortened versions of the speech in English and Afrikaans as a supplement in Braillorama, Briallorette, Braille Trumpet, Imfama and Blindaba. These are all newspapers for people who are blind. What is presently on Braille is all old information.

What we need now, is videos for the deaf that are subtitled. We need Government to make TV more accessible to people who are deaf. Yes, I want to applaud the GCIS for making sure that programmes that they have are more accessible for the disabled people. I want to applaud them for their work.

I would like to end off by thanking our chairperson, Comrade Nat, for chairing and being the kind of person that he is. We will miss him both in our portfolio committee as well as in the study group. I wish you all the best in your new job. Thank you. [Applause.]

Ms N S MTSWENI: Deputy Chairperson, hon Minister, Comrade Pahad and hon members, the ANC supports the GCIS Budget Vote because the GCIS has provided leadership in ensuring media diversity and development in order to improve media access to the formerly marginalised groups and communities. The role of objective, developmental and progressive media is critical in building an informed citizenry, which is the foundation of a vibrant democracy.

I think it is only proper to appreciate and thank the hon Minister Pahad and the CEO of the GCIS, Mr Joel Netshitenzhe, and their staff for their commitment, hard work and dedication in ensuring that all citizens have access to information on what Government is doing to ensure a better life for all. I hope hon members will join the portfolio committee in congratulating chairperson Nkenke Kekana for being honoured, last week Friday, by the advertising industry as the advertising personality of the year. [Applause.]

My input will focus on the progress made in the Media Development and Diversity Agency and the language policy of the public broadcaster. The Media Development and Diversity Agency was established by Act 14 of 2002 as an independent statutory body funded by Government and the commercial media. The main objective of the agency is to promote media development and diversity throughout the Republic. It aims, among others, to encourage ownership and control of and access to the media by the historically disadvantaged communities as well as by historically diminished indigenous languages and cultural groups; to build capacity through development of human resources and training; to promote the channelling of resources to communities, media and the small commercial media sector; and to support initiatives which promote literacy and the culture of reading.

We welcome the appointment of the board and the CEO of the agency. We are confident that if they work as a collective they will rise to the challenge of realising the above-mentioned objectives. The ANC is calling upon local communities, especially in rural areas, to apply for community radio licences and to participate in the establishment of community newspapers in order to take advantage of the opportunities offered by the Media Development and Diversity Agency. In the spirit of Vukuzenzele, we appeal to our public representatives to assist these marginalised communities in establishing the community media. Asisukumeni mavolontiya! [Let us participate, volunteers!] A re emeng mavolontiya. [Let us participate, volunteers.]

Our Constitution promotes the use of all 11 official languages. It also recognises the need to promote South African sign language and the Khoi, Nama and San languages. South Africa faces the legacy of the marginalisation of African languages on the one hand and resource constraints on the other. We pay tribute to one of the first founders of the ANC who, having a vision and the courage to demonstrate that African language newspapers are also viable, established Ilanga, the only mainstream newspaper published in an African language. Its readership has been growing over the years. In 1998, for example, it had approximately 750 000 readers and by 2000 its readership had grown to 1,3 million. The SABC’s research, done in 1996, indicates that South Africans prefer watching television in their home languages, notwithstanding the dominance of English on SABC TV.

There are approximately 3,5 million illiterate adults in South Africa with the majority based in rural areas. Besides spreading information by word of mouth, the only means of accessing information for these adults is through radio and television. The ANC believes that the public broadcaster should reflect the unity and diversity of our people and the needs of a democratic society. It should promote and protect all official languages equally through local content programming. In this respect we welcome the proposed language-broadcasting policy of the SABC. The public broadcaster has developed policies in seven different areas, including programming, news, language, universal service and access, local content, religion and education. For the next four weeks the SABC will be engaging the public on the policies through talk shows and discussion programmes on its radio stations and television channels. We call upon all communities to actively participate in these policy discussions or submit written submissions before 13 June 2003.

In conclusion, the GCIS has confirmed the words of our President: ``The tide has changed.’’ They have created the opportunity for all our people to begin to enjoy the benefits of our hard-earned freedom in the fields of media.

Now to my chairperson: Kekana, Tlou, Mabulepu, Mandebele Maye, akathomi muntu athoma obathomako. Sihlalo, siyathokoza baba. Kokuthoma sithokoza indlela obegade uziphethe ngayo, nendlela obegade uphethe thina abakwa-ANC ngayo. Ngibuye ngithokoze indlela ogade uphethe ikomidi liloke liphelele ngayo. Angithathe ithubeli ngithokoze nendlela obegade ukhambisa ngayo ikomidi lethu. Ngiyathemba bona akekho namunye phakathi kwethu oyisolako. Uhlangabezene nobunzima obunengi njengombana bese batjhwile abanye. Kodwana ngokubekezela nangokuzinikela ukwazile ukobana udlule kilobo bunzima obugade bukhona. Kancani nje ngikhumbula nasisekomidini lokha nasisebenza ngokuphasisa imithetho namkha sikhetha khona amabhodo. Bekuba khona ukuhlangahlangana kodwana ngoburholi bakho bewusiluleka bona sihlangane neenqhema eziphikisako, sikhulumisane besivumelane khona sizakuba neenqubekela phambili. Siyathokoza baba, Kekana. (Translation of Ndebele paragraph follows.)

[Kekana, Tlou, Mandebele Maye, akathomi muntu athoma obathomako. [Praising.] Firstly, I want to thank you for the manner in which you carried yourself, and the way you treated us members of the ANC, and I also thank you for the manner in which you controlled the committee. Let me take this opportunity to express gratitude for the way you directed our committee. I believe there is no one amongst us who can doubt that. You came across lots of difficulties, as other speakers have pointed out. But, because of your perseverance and commitment, you were able to overcome those difficulties. This brings to mind instances in the committee when we passed Bills or when we selected board members. There were problems that we experienced, but because of your leadership qualities you were able to advise us to work together with opposition parties, to debate and to agree so that there could be progress. We thank you, Mr Kekana.]

The ANC supports this Budget Vote. [Applause.]

Mev ANNA VAN WYK: Mnr die Voorsitter, die Regeringskommunikasie- en Inligtingsstelsel is ná vyf jaar redelik op dreef. ‘n Mens kan nie met alles saamstem nie, maar hierdie Regering doen ook goeie werk. Daar is beduidende bystand aan die armes beskikbaar, en dit is waar regeringskommunikasie ter sprake kom. Verlede jaar het die Minister in sy toespraak gesê aan die einde van 2003 sal daar 60 veeldoelige gemeenskapsentrums wees. Volgens die inligting wat ons in die portefeuljekomitee ontvang het, is daar 36 en die jaar is amper halfpad. Plattelandse inwoners, en ander ook, weet grotendeels nog nie watter moontlikhede daar ter verbetering van hulle lewens is nie, en selfs al sou hulle daarvan weet, kan hulle nie daarby uitkom nie. Die uitmergelende gesukkel wat mense moet verduur om gewone regeringsdienste te kry kan eenvoudig nie so voortgaan nie. Hoe gouer al hierdie sentrums toegerus en beman, elektronies gekoppel en volledig funksioneel is, hoe beter. (Translation of Afrikaans paragraphs follows.)

[Mrs ANNA VAN WYK: Mr Chairman, the Government Communication and Information System is functioning reasonably well after five years. One cannot agree with everything, but this Government also does good work. Significant aid is available to the poor, and this is where Government communication comes into play. Last year the Minister said in his speech that at the end of 2003 there would be 60 multipurpose community centres. According to the information that we received in the portfolio committee, there are 36 and we are almost halfway through the year.

Rural inhabitants, and others as well, on the whole do not yet know about opportunities that exist for the improvement of their lives, and even if they do, they cannot avail themselves of them. The exhausting struggle that people are subjected to in order to obtain ordinary Government services simply cannot go on like this. The sooner all these centres are equipped and staffed, electronically connected and fully functional, the better.]

Recently the President admitted that his communications set up by the hon Minister and his department still had shortcomings. This goes for the rest of Government as well. Many of the time-consuming misunderstandings between MPs and the executive, between Ministers and stakeholders, between the state and the public could be avoided if communications were smartened up. It is always tempting to blame the media and certainly they are not above criticism, but the place to start is with the application of the communications strategy and it seems to me that the most obvious place would be Parliament.

Waarom is daar nog nie geslote toegewysde radio- en TV-kanale wat aan elke skool, gemeenskapsentrum, oral waar regeringsdienste aangebied word, beskikbaar is nie? Daar moet mense kan hoor en kyk en sien wat hul Regering, hul Parlement en sy komitees doen en sê. Ons praat van ‘n enorme aantal mense wat so bereik kan word.

So ‘n netwerk moet dan gebruik word, en dan moet ‘n mens natuurlik ook die Kabinet en die staatshoof oorreed om die Parlement behoorlik te gebruik en hulle aankondigings hier te doen eerder as elders. Maak van die Parlement die instelling wat hy behoort te wees en slaan sommer ‘n paar vlieë met een klap dood.

Dan sou ons meer wees as ‘n onderbenutte verhoog vir sy lede, maar ook ‘n verhoog van besondere status vir die uitvoerende gesag. Dit sou ook beteken dat die media dan gekonsentreerd teenwoordig kon wees met beter kontinuïteit en opvolging, wat hopelik tot meer indringende verslaggewing ter bevrediging van die publiek en die leiers van die land sal lei. (Translation of Afrikaans paragraphs follows.)

[Why are there as yet no closed-circuit dedicated radio and TV channels available to every school, community centre, everywhere where Government services are offered? There people should be able to hear and look at and see what their Government, and their Parliament and its committees are doing and saying. We are talking about an enormous number of people who could be reached in this way. Such a network must then be used, and then one must of course also persuade the Cabinet and the head of state to use Parliament properly and to make their announcements here rather than elsewhere. Make Parliament the institution it should be and kill a few birds with one stone.

Then we would be more than an underutilised stage for members, but also a stage of special status for the executive authority. This would also mean that the media could be present in a concentrated way with better continuity and follow-up, which would hopefully lead to more incisive reporting to the satisfaction of the public and of the leaders of the country.]

The clash of interests between the BUA service, which functions as a news agency, and the independent media could also be eliminated and a great saving of the taxpayer’s money could ensue. I am talking of competition. The approach in respect of the Presidential Press Corps still needs more adjustment. It should be seen as a specialised group, not an exclusive body which may cause professional jealousy among colleagues and which functions as an elite reporting group. The rest of the press should still have access to the head of state as a normal convention in a modern democracy. Foreign journalists have accreditation and accommodation in the White House. I hear rumours that some foreign reporters are taking out South African citizenship to become eligible to be embedded with our President. [Interjections.]

Hier by ons word beoog om die vrye pers selfs sonder voldoende onderhandeling uit die hoofgebou van die Parlement te skuif. Ek vra die Minister om sy invloed in dié verband te gebruik en verder oor hierdie saak te besin. [Tussenwerpsels.] Die Nuwe NP steun die begroting. Ons wens die agb Nat alles wat mooi is toe, en sê baie dankie vir alles. Ons sien uit na die dag wanneer hy die portefeuljekomitee in sy nuwe hoedanigheid besoek. [Tussenwerpsels.] (Translation of Afrikaans paragraph follows.)

[Here locally it is envisaged to move the free press from the main building of Parliament even without adequate negotiation. I ask the Minister to use his influence in this regard and to reflect further on this matter. [Interjections.] The New NP supports the budget. We wish the hon Nat all the best, and thank him very much for everything. We look forward to the day when he will be visiting the portfolio committee in his new capacity. [Interjections.]]

Mr R D PIETERSE: Saam in die stryd om die grense van armoede terug te stoot. [Together in the struggle to push back the frontiers of poverty.]

Hon Deputy Chairperson, hon Minister Essop Pahad and hon members, that, in a nutshell, was at the heart of the state of the nation address as delivered by my President on 14 February this year. He spoke about the last year of minority domination, and the finalisation in the interim Constitution. Also, it was the year we lost two of our greatest leaders, Comrades O R Tambo and Chris Hani. He covered the ICC Cricket World Cup and offered assistance with regard to the problems of the United Nations.

Hy gaan voort en bedank die mense van Suid-Afrika wat hulle moue opgerol het en steeds besig is om as vrywilligers hierdie mooi land van ons nog ‘n beter plek vir almal te maak. Wanneer ons vandag, tien jaar later terug kyk, moet ons sê: Alhoewel alles nie perfek is nie, is ons beter daaraan toe as in die verlede. Inderdaad het die gety gedraai. Ja, ‘n beter lewe vind plaas elke dag. Hierdie boodskap moet aan al ons mense gaan, veral ons mense op die platteland, asook vir ons mense wat steeds benadeel word, hetsy deur gestremdheid, taal, kultuur, kleur, geslag of selfs woning. Hierdie mense het die geleentheid gehad om hul probleme en verwagtinge direk met die President en die Adjunkpresident, Ministers en Adjunkministers, Premiers en LUR’e te bespreek deur die imbizos by te woon. Hierdie praktyk moet seer sekerlik die engiste van sy soort wees in die wêreld. Ons moet die Regering daarvoor prys. (Translation of Afrikaans paragraph follows.)

[He went on to thank the people of South Africa who have rolled up their sleeves and who are still, as volunteers, busy making this beautiful country of ours an even better place for everyone. When we look back today, 10 years down the line, we have to say: Although not everything is perfect, we are better off than we were in the past. Indeed, the tide has turned. Yes, a better life is taking place every day. This message has to go to all our people, especially our people in the rural areas, as well as to our people who are still being detrimentally affected by either disability, language, culture, colour, sex or even residence. These people had the opportunity directly to discuss their problems and expectations with the President and the Deputy President, Ministers and Deputy Ministers, premiers and MECs by attending the imbizos. This practice must surely be the only one of its kind in the world. We have to commend the Government for that.]

In November last year, we had a two-day public hearing regarding racial inequalities in the advertising industry. These inequalities existed not only in the ownership, but also in the kind of advertisements in both the electronic and print media. We experienced that real or genuine transformation was inadequate.

This picture was ably illustrated by the black fronts in the industry and/or the black employees who are boxed in at the bottom of the industry ladder.

The advertising industry was structured and did things in such a way that it might be difficult or even impossible for them to transform themselves on their own or at the healthy pace that we do need. We need to look at suggestions or recommendations that came from the public hearings, and get a task team with Government at the centre or make direct interventions to get the process of transformation going at a very healthy pace. The patience of our people is wearing extremely thin.

This industry, like all others, must play a role in addressing the poverty amongst our people, mentally and physically.

Hoor net wat sê Yvonne Johnston, hoof-uitvoerende amptenaar van die Internasionale Bemarkingsraad van Suid-Afrika, of beter bekend as die IMC: (Translation of Afrikaans paragraph follows.)

[Just listen to what Yvonne Johnston, Chief Executive Officer of the International Marketing Council of South Africa, better known as the IMC, says:]

South Africa is on the brink of greatness. We have to stop whining and acknowledge how great we are and how far we have come in the last nine years. We have allowed people to say negative things about us without countering them.

It is important to present facts and put them into perspective. We are a country alive, indeed, with possibilities.

I want to add that we are also a country that is proudly South African, and we have to buy locally produced goods.

Agb Minister, hierdie informasie moet op ‘n gereëlde basis aan ons mense deurgegee word. Daarom sê ons as die ANC-regering, as die mense se Regering: Batho Pele. Die mense eerste. Ons moet ook daardeur die grense van armoede terugstoot wat betref kennis van hulle regte en sake: regte as werkers - plaaswerkers, huiswerkers; toelae vir kinders, asook gestremdes; pensioene vir ons senior burgers, ens. Maar net so belangrik is die verantwoordelikheid van ons as burgers teenoor mekaar en ook so teenoor ons Regering. Ja, ons sê natuurlik: Batho Pele, die mense eerste, ``people first’’. Ek wil graag dankie sê aan die beste voorsitter in die Parlement, die jong en agb Kekana. Ek weet daar is mense wat dit wil debatteer. Net Kekana is nog steeds die beste voorsitter in die Parlement. [Tussenwerpsels.] Hy is jonk. Hy is my broer, hy is my vriend, hy is my kameraad - maar bo alles, hy is my leier. Hierdie Parlement verloor ‘n groot man, enig in sy soort. Nkenke, maak net seker wanneer jy na Telkom toe gaan, dat Telkom in die hande van die mense bly; dat Telkom die mense se Telkom bly.

Minister Pahad, dankie vir die leiding wat u gee in hierdie departement. Ook aan Mnr Joel Netshitenzhe - baie dankie aan u en u span werkers wat wonderlike werk doen, vernaam teenoor die mense op die platteland. Dorpe soos Heidelberg, Riversdal, Albertinia, Slangrivier, Calitzdorp en Ladismith sê baie dankie. Ek wil ook dankie sê aan ‘n spesiale span werkers van die GCIS en die parlementêre kantoor soos Collin, Petra, Donna, Ludwig, Zanele Siswane en Karen. Hulle doen wonderlike werk. Ek wil graag ons lede uitnooi om die GCIS-kantoor oorkant die pad te gaan besoek en te gebruik. Al die pamflette met die mense se regte is daar om met die mense te deel. Dit is julle regte en wat julle kan verwag van die Regering en van die werkgewers. Die ANC steun hierdie begrotingspos. (Translation of Afrikaans paragraphs follows.)

[Hon Minister, this information should be put across to our people on a regular basis. That is why we as the ANC Government, as the people’s Government say: Batho Pele. People first. Through that we also have to push back the frontiers of poverty as regards knowledge of their rights and issues: rights as workers - farmworkers, domestic workers; grants for children, as well as the disabled; pensions for our senior citizens, and so forth. But equally important is our responsibility as citizens towards each other as well as towards our Government. Yes, of course we say: Batho Pele, people first.

I would like to say thank you to the best chairperson in Parliament, the young and hon Kekana. I know there are people who would like to debate that. Only Kekana is still the best chairperson in Parliament. [Interjections.] He is young. He is my brother, he is my friend, he is my comrade - but, above all, he is my leader. This Parliament is losing a great man, one of a kind. Nkenke, just make sure, when you go to Telkom, that Telkom remains in the hands of the people; that Telkom will remain the people’s Telkom.

Minister Pahad, thank you for your guidance in this depatment. Also to Mr Joel Netshitenzhe - thank you to you and your team of workers who are doing outstanding work, especially relating to people in the rural areas. Towns such as Heidelberg, Riversdal, Albertinia, Slangrivier, Calitzdorp and Ladismith say thank you very much. I would also like to say thank you to a special team of workers of the GCIS and the parliamentary office, such as Collin, Petra, Donna, Ludwig, Zanele Siswane and Karen. They are doing exceptional work. I would like to invite our members to visit and use the GCIS office across the road. All the pamphlets containing the people’s rights are there to share with people. These are your rights and what you can expect from the Government and from employers. The ANC supports this Budget Vote.] The MINISTER IN THE PRESIDENCY: Thank you, Chairperson. First of all, I would like to thank all the speakers who have participated in the debate.

Let me start with Mr Gore. He is a victim of his own delusions, staggering ignorance and a big lie. [Interjections.] I want to repeat it again and again and again so that it goes through your thick heads: The position of the Government is very clear, and we’ve said it over and over again - our policies are based on the premise that HIV causes Aids. [Interjections.]

Mr D H M GIBSON: On a point of order, Chairperson: Is it in order and is it parliamentary for the hon Minister to refer to hon members of Parliament as having ``thick heads’’? [Interjections.]

The DEPUTY CHAIRPERSON OF COMMITTEES: Hon Minister, I think it would be unparliamentary. We need to underscore the point that all members here are honourable members, and members with integrity. [Interjections.] The MINISTER IN THE PRESIDENCY: I withdraw that.

The DEPUTY CHAIRPERSON OF COMMITTEES: Thank you.

The MINISTER IN THE PRESIDENCY: But, that he is a victim of his own delusions and staggering ignorance, I stand by.

I want to repeat again that the entire policy of the Government is based on the premise that HIV causes Aids. I hope they understand that, once and for all. [Interjections.]

It would be useful if hon members come to this House, this very respectable House, and talk about reports that they themselves actually read. You don’t read a report; you read a newspaper article about a report and you then come here and tell us what the report said or didn’t say. Can I advise the hon Mr Gore to go and read, and he might just educate himself a bit. [Interjections.]

I also believe that it is an absolute disgrace that the only contribution the DA could make to this very important debate was to ask him to say what he said. I really think it is a disgrace.

To Ms Vos, I am rather sorry that when the original thing appeared in the yearbook, nobody from the IFP brought it to our notice. I myself, as the Minister, objected to the original formulation. Nobody brought it to our notice, in spite of the fact that we said that this was open to the public and that we wanted the public to comment on the yearbook. If you go to the original, you will find that the formulations are even more painful and incorrect.

You’ve asked me to address this issue quite directly, and this is what I am going to do: There has never been and there never will be an intention on the part of the GCIS to cast any aspersions on or to vilify either the IFP or Minister Buthelezi - none whatsoever.

In so far as the offending sentence is concerned, I will discuss this matter with the GCIS with the view to removing it from the yearbook. That will happen. [Interjections.]

You know, the DA wants to know … [Interjections.] You want to know about elections? When somebody says that elections are coming and the GCIS must only be a messenger and not interpret the message, it is reflective of the old-type thinking: Amablackies, your job is only to be a messenger; you can’t be anything else. You can’t interpret, because you can’t think. You shouldn’t think for yourself.

Now, if you knew better, hon Mr Gore, in both the elections for 1994 and 1999, the GCIS made public undertakings, including to this House, prior to the elections, that the GCIS would operate within a certain framework. That framework would be that the GCIS would not be, and I repeat, would not be the propaganda arm of any political party. [Interjections.] Let me say, as the ANC now, that we do not need the GCIS to talk about us, because we are good enough to speak about ourselves. [Applause.] When the elections come in the year 2004, it will be quite clear that some of you are not going to be sitting here. You’d better go and look for other jobs. Thank you very much, Chairperson. [Applause.]

Debate concluded.

The DEPUTY CHAIRPERSON OF COMMITTEES: Order! Hon members, I need to make an announcement, and I hope you will listen carefully. All MPs who will be present at Parliament tomorrow morning at 9 o’clock will need to gather in front of the Old Assembly Chamber so that the South African Revenue Service may be afforded the opportunity of a photo session in which your photographs will be taken and there are those who will assist you to fill in your tax forms. Members can do this at nine o’clock tomorrow. Have your photographs taken and then you will be assisted in filling in your forms, so that you can be in good standing with the Receiver of Revenue.

The House adjourned at 18:48. ____ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS:

National Assembly and National Council of Provinces:

1. Introduction of Bills:

 (1)    The Minister of Finance:


     (i)     Exchange Control Amnesty and  Amendment  of  Taxation  Laws
          Bill [B 26 - 2003] (National Assembly - sec 77).


     Introduction and referral to the Portfolio Committee on Finance  of
     the National Assembly, as well as referral  to  the  Joint  Tagging
     Mechanism (JTM) for classification in terms of Joint Rule  160,  on
     15 May 2003.


     In terms of Joint Rule 154 written views on the  classification  of
     the Bill may be submitted to  the  Joint  Tagging  Mechanism  (JTM)
     within three parliamentary working days.

National Assembly:

1. Referrals to committees of tabled papers:

 (1)     The  following  paper  is  referred  to  the  Joint  Monitoring
     Committee on the Improvement of the Quality of Life and  Status  of
     Women:


     Government Notice No R  359  published  in  Government  Gazette  No
     25023 dated 14 March 2003: Amendment of  Regulations  in  terms  of
     the Recognition of Customary Marriages Act, 1998  (Act  No  120  of
     1998).


 (2)    The following papers are referred to the Portfolio Committee  on
     Finance:


     (a)     Submission of the Financial and Fiscal  Commission  on  the
          Division of Revenue for 2004-2005, tabled in terms of  section
          9 of the Intergovernmental Fiscal Relations Act, 1997 (Act  No
          97 of 1997).


     (b)     Strategic Plan of Statistics South Africa for 2003-2006.


 (3)    The following paper is referred to the  Portfolio  Committee  on
     Public Service and Administration:


     Report of the Public Service Commission on Blacklisting.


 (4)    The following paper is referred to the  Portfolio  Committee  on
     Public Works:


     Memorandum by the Minister of Public Works setting out  particulars
     of the Building Programme for 2003-2004 [RP 26-2003].


 (5)    The following paper is referred to the  Portfolio  Committee  on
     Minerals and Energy:


     Strategic Plan of the Department of Minerals and Energy  for  2003-
     2006.


 (6)    The following paper is referred to the  Portfolio  Committee  on
     Foreign Affairs:


     Report of the 44th  Commonwealth  Parliamentary  Association  (CPA)
     Africa Executive Committee Meeting held in  Nairobi,  Kenya  on  26
     March 2003.


 (7)    The following is referred to the Joint Monitoring  Committee  on
     the Improvement of Quality of Life and Status of Women and  to  the
     Portfolio Committee on Provincial and Local Government:


     Report  of  the  Commission  on  Gender  Equality   on   Integrated
     Development Planning - A Gender Perspective.


 (8)    The following paper is referred to the  Portfolio  Committee  on
     Environmental Affairs and Tourism for consideration and report:


     Proposal for the Leasing of Water Space in terms of  section  6  of
     the Sea Shore Act, 1935  (Act  No  21  of  1935),  to  the  Maribus
     Industries (Pty) Ltd Seaweed (Gracilaria) Cultivation Project.


 (9)    The following paper is referred to the  Portfolio  Committee  on
     Environmental Affairs and  Tourism.  The  Report  of  the  Auditor-
     General contained  in  the  following  paper  is  referred  to  the
     Standing  Committee  on  Public  Accounts  for  consideration   and
     report:


     Report  of  the  South  African  Weather  Services  for  2001-2002,
     including the  Report  of  the  Auditor-General  on  the  Financial
     Statements for 2001-2002 [RP 18-2003].
 (10)The following paper is  referred  to  the  Portfolio  Committee  on
     Defence and to the Joint Standing Committee on Defence:


     The President of the Republic submitted a letter,  dated  24  April
     2003, to the Speaker informing Parliament of the employment of  the
     South African National Defence Force.


 (11)The following paper is referred to the Portfolio Committee on  Home
     Affairs:


     Agreement between the Government of the Republic  of  South  Africa
     and the Government of the Republic of  Angola  on  Waiving  of  the
     Requirement of Visas on Diplomatic and Official  Passports,  tabled
     in terms of section 231(3) of the Constitution, 1996.


 (12)The following paper is  referred  to  the  Portfolio  Committee  on
     Provincial and Local Government:


     Reasons  for  the  Declaration  of  a  State  of  Disaster  in  the
     Magisterial  Districts  of  Swellendam,  Montagu   and   Robertson:
     Western Cape Province, in  terms  of  section  2(4)  of  the  Civil
     Protection Act, 1997 (Act No 67 of 1977).


 (13)The following paper is referred to the Portfolio Committee on Arts,
     Culture, Science and Technology. It is  referred  to  the  Standing
     Committee on Public Accounts for consideration and report:


     Report of the Auditor-General on the Financial  Statements  of  the
     National English Literary Museum for 2000-2001 [RP 200-2002].


 (14)The following papers are referred to  the  Portfolio  Committee  on
     Justice and Constitutional Development. They are  referred  to  the
     Standing  Committee  on  Public  Accounts  for  consideration   and
     report:
     (a)     Report of the Auditor-General on the  Financial  Statements
          of the President's Fund for 2001-2002 [RP 236-2002].


     (b)     Report of the Auditor-General on the  Financial  Statements
          of the Truth and Reconciliation Commission for  2001-2002  [RP
          243-2002].

TABLINGS:

National Assembly and National Council of Provinces:

Papers:

1. The Speaker and the Chairperson:

 The Fourth Economic and Social Rights Report of the South African Human
 Rights Commission for 2000-2002.

1. The Minister of Finance:

 Strategic Plan of the National Treasury for 2003-2006 [RP 39-2003].

1. The Minister of Social Development:

 Report and Financial Statements of the Disaster Relief Fund  Board  for
 2001-2002, including the Report of the Auditor-General on the Financial
 Statements of the Disaster Relief Fund for 2001-2002 [RP 32-2003].

1. The Minister for Justice and Constitutional Development:

 Proclamation No R.40 published in Government Gazette Number 24804 dated
 30 April 2003: Extension of the period of operation of sections 51  and
 52 of the Criminal Law Amendment Act, 1977 (Act No 105 of  1977),  made
 in terms of section 53(2) of the Criminal Law Amendment Act, 1977  (Act
 No 105 of 1977).

1. The Minister of Health:

 Report and Financial Statements of the  Compensation  Commissioner  for
 Occupational Diseases  for  2001-2002,  including  the  Report  of  the
 Auditor-General on the Financial Statements  of  the  Mines  and  Works
 Compensation Fund for 2001-2002.

National Assembly:

1. The Speaker:

 (a)    Letter dated 9 May 2003 from  the  Minister  of  Health  to  the
     Speaker, tabled in terms of section 65(2)(a) of the Public  Finance
     Management Act, 1999 (Act No 1 of 1999), explaining  the  delay  in
     the tabling of  Annual  Report  and  Financial  Statements  of  the
     Compensation Commissioner for Occupational Diseases:


     Dear Madam Speaker


     LATE TABLING OF THE ANNUAL REPORT  2001/2002  OF  THE  COMPENSATION
     COMMISSIONER FOR OCCUPATIONAL DISEASES (CCOD)


     I write to you in terms of section  65(2)  of  the  Public  Finance
     Management Act (PFMA), 1999 (Act No 1 of 1999).


     This Report was not tabled in time  as  the  new  Commissioner  was
     only appointed in November 2001, and he was therefore not yet in  a
     good position to gather  information  for  the  period  before  his
     appointment. Another major contributory  factor  to  the  delay  in
     tabling the Report is the fact that the Deputy Commissioner was  at
     the time still on suspension together with some of  the  officials,
     owing to financial irregularities identified.


     I trust that you will kindly accept  the  apology  and  accordingly
     grant us an opportunity to table this Report.


     Thank you in anticipation.


     DR M E TSHABALALA-MSIMANG MP
     Minister of Health


 (b)    Letter dated 15 May 2003 from the Minister of Social Development
     to the Speaker, tabled in terms of section 65(2)(a) of  the  Public
     Finance Management Act, 1999 (Act No 1  of  1999),  explaining  the
     delay in the tabling of Annual Report and Financial  Statements  of
     the Disaster Relief Fund:


     Dr F N Ginwala


     REASONS FOR THE LATE SUBMISSION OF THE FINANCIAL STATEMENTS OF  THE
     DISASTER RELIEF FUND FOR THE 2001/02 FINANCIAL YEAR.


     AIM:


     (i)     To advise on the problems experienced with the  compilation
              of the financial statements of the Disaster  Relief  Fund
              for the 2001/02 financial year.


     (ii)    In accordance with section  65(2)  of  the  Public  Finance
              Management Act, the  executive  authority  must  table  a
              written explanation in the legislature  setting  out  the
              reasons why the statements were not tabled in time.


     REASONS:


     (a)      The  Department  of  Social  Development  has  not  had  a
          permanent position responsible  for  the  compilation  of  the
          financial  statements.  Previously,   an   official   in   the
          Directorate: Financial Management was assigned to compile  the
          statements in addition to her normal workload.


     (b)     Due to an increase in  the  number  of  disasters  and  the
          extent of impact in  the  different  provinces  there  was  an
          increase in the number of applications. Contract  workers  had
          to be appointed to  assist  with  the  administration  of  the
          applications in the line function.


     (c)     The PASTEL software package, which was used to compile  the
          statements, could not handle all the  applications.  The  bank
          reconciliation   could   only   handle   4   999   outstanding
          transactions  and  the  applications  processed  per  disaster
          exceeded that amount by far.


     (d)     PASTEL version 6 was bought in March 2002, but the  problem
          was not resolved.


     (e)     The contract worker appointed in December  2001  to  assist
          with  the  compilation  of  the  funds  did   introduce   some
          improvements eg to import data captured on  the  mainframe  to
          the  software  package  EXCEL  but  left   the   actual   bank
          reconciliation's to be done by the interns.  The  interns  did
          not have the necessary skills and ended up re  performing  the
          bank reconciliation of June 2001 three times. This was done in
          February and March 2002. Please note that the June  2001  bank
          statements consisted of 144 pages.


     (f)     On 18 April 2002 the contract worker  resigned  because  he
          secured  an  offer  for   a   permanent   post   with   better
          remuneration. At that stage the interns  were  still  busy  to
          compile the bank reconciliation for June 2001.


     (g)     This affected the work being carried out  by  the  interns.
          Even though the  department  tried  to  continue  without  the
          contract worker but was unable to complete the work.


     (h)     At the beginning of July  2002,  the  Department  requested
          the  Office  of  the  Auditor-General  to  assist   with   the
          compilation of the statements.


     (i)     The work was commenced at the end  of  July  2002  and  the
          financial statements were submitted middle September 2002. Due
          to the volume of the work to be done, this  task  took  longer
          than was initially envisaged.


     Steps taken to address the situation:


     (a)     A permanent position at the level of Senior  Administration
          Officer was created on the establishment of the Department  of
          Social Development. This post was filled on 1 August 2002.


     (b)     The Sub Directorate responsible for the management  of  the
          Disaster Relief Funds has now  been  upgraded  to  Directorate
          level. This Directorate will also be responsible for preparing
          the financial  statements.  More  posts  are  expected  to  be
          created to deal with the financial administration of the  fund
          in the 2003/04 financial year.


     MINISTER OF SOCIAL DEVELOPMENT