TUESDAY, 15 JUNE 2004 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at 14:04.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.

                          NOTICES OF MOTION

Mr M A MZIZI: Chairperson, I hereby give notice that on the next sitting day of the Council I shall move, on behalf of the IFP:

That the Council -

(1) notes that a hijacker was shot dead in Pretoria earlier this week, after being involved in a shoot-out with police;

(2) further notes that the hijack victim stopped a patrolling police car and within seconds the police gave chase; and

(3) acknowledges that police visibility is effective and it does have a major impact on combating the unacceptably high level of crime in South Africa.

Ms D ROBINSON: Chairperson, I give notice that I shall move on the next sitting day of the Council:

That the Council -

(1) notes that -

   (a)  National Youth Day is to be celebrated tomorrow, 16 June;
   (b)  alcohol plays a role in over half of homicides and  76%  of  all
       stabbings;


   (c)  in 2000, up to half of the people charged with  family  violence
       in the main metropolitan areas admitted that they were drunk  at
       the time of the offence; and


   (d)  mental development in one out of 10 children in South Africa has
       been permanently damaged by the mother's consumption of  alcohol
       while pregnant;

(2) expresses its concern that the liquor trade appears to target the most vulnerable, our children, with their promotion of designer drinks; and

(3) therefore calls for -

   (a)  stricter enforcement of the  regulations  against  the  sale  of
       alcohol to persons under the age of 18;


   (b)  restrictions on the intensive promotion of alcohol  consumption,
       including limited advertising times for alcoholic products; and


   (c)  the introduction  of  compulsory  warning  labels  on  alcoholic
       beverages.

Nkk J N VILAKAZI: Sihlalo, ngifaka isaziso sokuthi ekuhlaleni okulandelayo kwalo Mkhandlu ngizophakamisa:

Ukuthi lo Mkhandlu -

(1) ummangaliswa -

   (a)   yisenzo  esishaqisayo  sokudunwa  kwetekisi   ligcwele   abantu
       emgwaqweni   iHelpmekaar,   ebelisuka    eZakheni    lilibhekise
       eMnambithi, ngoLwesithathu oludlule;


   (b)   ukuthi  abesilisa  abakade  begibele  imoto  yohlobo  lweToyota
       Corolla, nayo ebidunwe kumnikazi, balandele leli  tekisi  okuthe
       uma lima empambanomgwaqo baliduna;

(2) uyezwa ukuthi -

   (a)   kungene  iqigelekeqe  ezintathu  ngodli  etekisini,   umshayeli
       wakhonjwa ngoshova esihlalweni sangemuva;


   (b)  kulesi sixakaxaka  abaduni  badubule  babulala  abagibeli  abane
       abakade besetekisini, abayisithupha balimala; futhi


   (c)  umnikazi wetekisi othuke  ezithela  kule  nhlekelele  uthe  ethi
       uyasiza naye wadutshulwa walimala, kanti  izigelekeqe  ezintathu
       zishaye utshani zabaleka;


   (d)   phakathi  kwabalimele  etekisini    kukhona   omunye   obemdibi
       nabaduni,  nokuthi  lokho  kubonakale   ngenkathi   sebengeniswa
       esibhedlela;

(3) ushaqekile ukuzwa ukuthi kwenziwa konke lokhu nje omnikazi wemoto ukhona emotweni yakhe, engenakwenza lutho;

(4) uzwelana nabo bonke abehlelwe yilo mshophi;

(5) uzwakalisa ukuthokoza ngokuthi umnyango wezomthetho uphansi phezulu ufuna labo baduni nabahlaseli babagibeli; futhi;

(6) unxusa ukuba isandla somthetho siqine kakhulu ukuze kuphephe abashayeli nabagibeli. (Translation of isiZulu draft resolution follows.) [Mrs J N VILAKAZI: Chairperson, I hereby given notice that at the next sitting of this Council I shall move:

That the Council -

(1) is taken aback by -

   (a)  the appalling hijacking of a taxi that was full of passengers at
       Helpmekaar  Road  and  which  was  travelling  from  Zakheni  to
       Ladysmith on Wednesday, last week;


   (b)  the fact that three males who were in a  Toyota  Corolla,  which
       had been hijacked as well, followed the taxi until it reached an
       intersection where they hijacked it;

(2) notes that –

   (a)  three criminals forcefully  boarded  the  taxi  and  shoved  the
       driver to the back seat;


   (b)  during this altercation  the  hijackers  shot  and  killed  four
       passengers and wounded six;


   (c)  the taxi owner who just happened to come across the incident and
       tried to assist  was  shot  and  injured,  and  that  the  three
       criminals ran away and disappeared into thin air;


   (d)  that among the injured passengers  was  one  accomplice  of  the
       hijackers, and that that came to light when they  were  admitted
       to hospital;

(3) is shocked to learn that all of this took place while the owner was inside his own car, but could do nothing;

(4) expresses its condolences to all those befallen by this calamity;

(5) expresses its appreciation that the justice department is hunting down these hijackers and passenger attackers; and

(6) appeals to the justice system that it should deal with criminals mercilessly in order to protect drivers and passengers.]

SPORTING ACHIEVEMENTS OF THE SPRINGBOKS, HESTRI CLOETE AND ROY SABBATINI

                         (Draft Resolution)

Mr N M RAJU: Chair, I move without notice:

That the Council -

(1) notes the Springboks’ victory of 31-17 over the Irish in decisive fashion;

(2) further notes that Hestrie Cloete, our world-famous high jumper, won an event in Europe last week;

(3) also notes that Rory Sabbatini, yet another South African golfer making his mark in the United States, tied for first place in the prestigious Buick Classic in New York, unfortunately losing to Spain’s Sergio Garcia in the sudden death play-off;

(4) wishes to place on record its congratulations to these South African stars on their victorious performances; and

(5) further wishes the Springboks yet another sparkling display in the second test against the Irish this Saturday at Newlands, Cape Town.

Motion agreed to in accordance with section 65 of the Constitution. APPROPRIATION BILL

                         (Review of policy)

Vote No 32 - Trade and Industry:

The CHAIRPERSON OF THE NCOP: The hon Minister of Trade and Industry, Minister Mpahlwa, you are welcome in this House, and congratulations on your appointment as the new Minister of Trade and Industry.

The MINISTER OF TRADE AND INDUSTRY: Thank you very much, Madam Chairperson, for those kind words. I would like to recognise members of the executive councils of provinces who are here - I’ve seen MEC Lynne Brown; I don’t know if there are others. Hon members, ladies and gentlemen, allow me to start by congratulating all of you on your election to the National Council of Provinces. In particular, I would like to congratulate the MECs for economic development who have been appointed and, in some cases, reappointed, in each province. This afternoon the Council deliberates on the budget of the Department of Trade and Industry, the DTI. We should not see this Budget Vote today as a routine matter of business to be discharged as quickly as possible. Budget Votes are an opportunity for hon members to scrutinise the work of departments and to ensure that this work will deliver on the mandate that the people of this country have given us: a mandate to create work, to eradicate poverty, to reduce inequalities, and to expand economic opportunities for all. Within the NCOP this scrutiny takes on an additional dimension. As representatives of South Africa’s nine provinces, members of this Council are particularly concerned about how the work of the department will improve the economy of their province and region.

It is my intention to set out this afternoon the DTI’s plans for the next five years to achieve an objective that I believe we all share. This objective is to unlock the economic potential of all our towns, villages and communities, our different regions and provinces, so that the geographic spread of economic growth and development is more equitable.

Hon members, today is the first time that I stand before you as Minister of Trade and Industry and it is my wish that we can develop a good relationship between the National Council of Provinces and the DTI. I believe that a firm foundation for this has been set at the level of officials, and I trust that over the next five years we will have many fruitful interactions on those matters that are important to those who have elected us.

Our Constitution enshrines the principle of co-operative governance and compels the three spheres of government - national, provincial and local - to work together in a co-operative spirit to provide a better life for all South Africans. In the first 10 years of our democracy we sometimes struggled to give this important constitutional principle practical meaning. We sometimes struggled to define the roles of the different spheres of government, especially where the Constitution assigned concurrent responsibilities to national and provincial government. Matters including gambling, liquor, small-enterprise promotion, consumer protection, and trade, are both national and provincial responsibilities. Problems over jurisdiction have arisen sometimes, resulting in service delivery gaps and even legal disputes.

There have been instances in which responsibilities were assigned to provincial or local government before the required capacities and resources were in place. Government’s 10-year review asks two critical questions about co-operative governance as we move into the second decade of our democracy. Firstly, how do we balance the need to put into practice our common national vision while respecting the constitutional autonomy of each sphere of government in critical areas of delivery? Secondly, and perhaps more controversially, could we conceive of an asymmetric allocation of powers and functions in those cases in which the capacity to perform those powers and functions is weak?

Often, we have competed with one another to land large investment projects rather than working together for the benefit of South Africa. We have duplicated activities, setting up more than 100 economic development agencies across the three spheres of government. Almost every province, city and municipality has its own investment promotion agency, its own economic development agency, tourism agency, and so on. Some have even opened up offices in foreign cities - a very expensive undertaking. We have created confusion in the minds of investors and in the minds of economic citizens as they are faced with a myriad of possible organisations to approach when they require support.

Does an enterprise wanting to invest in the Coega Industrial Development Zone deal with the DTI, or with the Coega Development Corporation, or with the Eastern Cape Development Corporation, or with the Eastern Cape department of economic affairs? Investors, exporters, small enterprises, consumers, co-operatives, black businesses and entrepreneurs are not interested in the different roles and functions of the various entities that make up Government. They are interested in getting assistance as quickly and as simply as possible.

This is a challenge that we must address over the next few years. We must work towards the goal of providing economic citizens with a one-stop shop to economic development support wherever they may be in the country. We should consider, as a short-term goal, introducing a single call centre number that links all our economic departments and agencies.

We also need to develop a better understanding of the specific products and services offered to economic citizens by the different spheres of government and their agencies. Our first task in this regard should be to compile a catalogue of all of the products and services that we collectively offer to economic citizens.

Ten years later the legacy of apartheid is still evident in the distribution of productive and sustainable economic activities throughout South Africa. Eighty percent of South Africa’s manufacturing output is produced in six metropolitan areas. The unequal access to economic opportunities that continues to mark the South African landscape has contributed to massive migration to the urban centres over the past decade.

According to the census, which was released last year, more than 20% of the people living in metropolitan areas, and in some of the regional centres and small towns, are new migrants from rural areas. As a result, severe pressure is being placed on infrastructure and service delivery in these urban areas. This trend has contributed to the unemployment problem, as many African women from rural areas have, upon moving to urban centres, sought formal employment opportunities, thus expanding the size of South Africa’s economically active population faster than new jobs are being created.

The mainly rural provinces of Limpopo, as well as the Eastern and Northern Cape, are experiencing a fairly rapid loss of often young and skilled people, hampering their ability to take advantage of economic opportunities. The challenge of the two economies is, in many ways, a challenge of overcoming the continued skewed pattern of economic development.

In our sector of work, we have seen that certain economic sectors are concentrated in certain parts of South Africa. The automotive sector is concentrated in three provinces: Gauteng, the Eastern Cape and KwaZulu- Natal; whereas the chemical industry is located in every province, except for the Limpopo province. The Greater Johannesburg region is home to most of the bigger call centres in South Africa, followed by Cape Town and Durban; while two-thirds of the boat-building, shipbuilding and repair sector is located in the Western Cape. Fifty percent of the clothing and textile sector is also based in the Western Cape, with some clothing and textile manufacturing also taking place in Gauteng, the Eastern Cape, the Free State and KwaZulu-Natal.

These patterns are not static, and there are trends that show that potential does exist for new investment to take place in other parts of the country. For example, the agriprocessing sector has, until recently, been located mainly in the traditional manufacturing centres of Gauteng, the Western Cape, and KwaZulu-Natal, to be close to the larger domestic markets and to be near to the main ports for exports. However, with consumers demanding fresher produce there is a trend to locate agriprocessing plants closer to the site of agricultural production. Subsequently, there has been an increase in agroprocessing facilities established in the Free State, the Eastern Cape, and the North West. However, this trend is being hindered by the absence of appropriate infrastructure and an undersupply of skilled workers.

Not every sector can be equally represented in every province. Certain types of manufacturing need to be located close to natural resources, mines and farms; or close to ports and other logistics infrastructure close to major markets. Nevertheless, the potential does exist for certain sectors to develop more of a presence outside of the big three provinces of Gauteng, the Western Cape and KwaZulu-Natal. The agriprocessing sector is a good example of this.

The Government is implementing several programmes to address this continued distortion in the development of our economy, including the Urban Renewal Programme and the Integrated Sustainable Rural Development Programme. Provinces are implementing provincial growth and development strategies while every municipality has an integrated development plan. Unfortunately, there are too many examples in which these various plans and programmes do not link up in a coherent manner, or in which we are failing to leverage synergies from working together in a more co-ordinated way. Also, the programmes and plans tend to lack economic content. Focus is correctly placed on service delivery, infrastructure needs and social development.

However, insufficient attention is given to understanding the economic potential that exists in every municipality and in the 21 urban and rural nodes, and how this potential can be unlocked. Do the integrated development plans of municipalities in Limpopo and Mpumalanga take into account the trend evident in the agriprocessing sector and include steps to address the infrastructure and skills constraints? The role of local governments in providing an environment that is conducive to productive economic activity needs to be emphasised and reflected in the integrated development plans, including the zoning of land for industrial and commercial purposes, rates and service charges, and the delivery of basic utilities.

In strengthening the role of local government in economic development, we need to think about how we strengthen the role of the local business community and chambers, and trade union and other community structures to partner with municipalities. The emergence of a unified business movement in South Africa with last year’s launch of Business Unity SA, or Busa, and the Chambers of Commerce and Industry of SA, or Chamsa, is to be welcomed. Strong and effective partnerships for delivery require strong, unified and capacitated partners. In recognition of this, the DTI will be assisting Busa and Chamsa financially in the short term.

We are also supporting the trade union movement and have seconded a senior official to the SA Clothing and Textile Workers Union for three years to work on projects aimed at the development of our clothing sector. The DTI, through its community-public-private partnership programme, has developed an excellent model for forming partnerships with communities for the purposes of economic development and employment creation. This successful programme brings together communities, traditional leaders, provincial governments, local authorities and the DTI in initiating and managing various projects in the ecotourism, mariculture and cut flowers sectors, as well as small-scale mining and agriprocessing. More than 8 500 new jobs have been created, mostly in rural areas, through this programme.

It is absolutely essential that we in the National Council of Provinces, as policy-makers and lawmakers, understand where economic activity is taking place in our country and how these activities can be expanded. To assist in this work, the DTI is prioritising the compilation of a comprehensive economic map of South Africa, a map that indicates where economic activity is taking place; where the power stations and dams are located; through which towns and communities the railway lines and major roads run; where the mines, farms and factories are situated; what land is available for agriculture, mining, manufacturing and commercial use; and the cities and large towns that have universities and further education and training colleges, fresh produce markets and airports. This is critical information for us to use in our economic planning.

The department will work with provinces, local government and other national departments in the economic and employment cluster. This work is one of the DTI’s flagship projects for the 2004-05 financial year. This means that we have prioritised this project and given it a non-negotiable status within the department. We have allocated additional resources to the project and will be closely monitoring implementation.

The DTI will continue its work with its provincial and local counterparts on the industrial development zones. An amount of R100 million will be transferred to provincial and local governments to fund critical infrastructure development around these IDZs. We are also working closely with the Nelson Mandela Metropolitan Council in the Eastern Cape and a range of stakeholders to unleash the enormous potential of this part of South Africa.

Another project that the DTI has worked on that has an important spatial dimension is the construction of the DTI’s new campus in the Sunnyside area of Tshwane. This world-class development, funded through a public-private partnership, was implemented in such a way that the surrounding area is being upgraded. The private sector is following the DTI’s lead and developing new retail centres and housing in what was a part of the city that had been redlined by commercial banks.

Much of South Africa’s economic infrastructure was put in place in the 1960s and 1970s and is now inadequate to meet the needs of the modern economy. The Government has committed itself to investing R100 billion in public infrastructure over the next five years. As the President indicated in his state of the nation address a few weeks ago, infrastructure investment plans will be developed by October this year. It is crucial that we find the appropriate institutional mechanism for provinces and local authorities to participate in the development of these plans. Not only do we need to ensure that the infrastructure needs of our different regions are met, but also that the development of this infrastructure uses, as far as possible, labour-based construction methods so as to provide significant employment opportunities for many people.

The President has eloquently set out the two economies paradigm in several addresses to joint sittings of the National Assembly and the National Council of Provinces. It is not necessary for me to repeat his words. I would like to tell the Council about some of the important projects that the DTI will be implementing this year that are specifically aimed at addressing the needs of economic citizens caught in the second economy. These are the department’s flagship projects. I have spoken at length about the DTI’s work to develop a geographic spread strategy. In addition, the DTI will disburse the first loans to micro enterprises from the Apex Fund before the end of this year. Mainly rural African women will benefit from this fund. [Applause.]

We will merge Ntsika and the Manufacturing Advisory Centres to provide a better service to small enterprises around the country, while also finalising options to provide economic citizens with easier access to the DTI and its agencies. Legislation will be introduced to Parliament that will extend enterprise support, particularly incentives currently available to manufacturing firms, to all sectors of the economy. New incentives to support the film industry, back-of-office processing and call-centre sector will be launched in the next few weeks.

Legislation to provide an enabling environment for the development of co- operatives will also be introduced to Parliament this year. Financial support and technical assistance will be made available to co-operative enterprises. A considerable amount of work will be done to implement the Broad-Based Black Economic Empowerment Act, including the appointment of the members of the Advisory Council and publishing various codes of good practice. The DTI will also be conducting provincial roadshows on this subject. The National Empowerment Fund, one of the DTI’s agencies, introduced new financial products for black-owned enterprises two weeks ago.

Another DTI flagship project for this year is reforming South Africa’s consumer credit law to provide more protection to consumers when they take out loans or buy goods on hire purchase. A new consumer credit Bill will be tabled in Parliament in the first quarter of 2005. Consumer protection is a concurrent responsibility and is an area that has sometimes been neglected. A new consumer protection policy is being finalised by the DTI and the policy will be debated with provinces in the next few months.

In all these areas of work it is imperative that we clarify the respective roles and responsibilities of national, provincial and local government. I intend to continue to build on the platform that was put into place by my predecessor, Minister Alec Erwin, in this regard. In the previous five years, the DTI embarked on an extensive intergovernmental relations programme and set up a directorate to manage this programme. More regular interaction with the other spheres of government was initiated, including visits by the DTI executive board to provinces - the leadership of the Department of Trade and Industry, and they are sitting up there in the gallery; quarterly meetings with MECs; an annual meeting of MECs, executive mayors of metro councils, the SA Cities Network and the SA Local Government Association; and an annual lekgotla to forge greater alignment of national and provincial economic development strategies. These arrangements will be continued, and we will seek ways to improve upon them.

Hon members, as you know, I joined the DTI from the National Treasury where the Minister of Finance frequently referred to the group of finance MECs we worked with as “Team Finance”. Hon members and MECs, let us build “Team Economy” to give concrete meaning to the constitutional principle of co- operative governance and to implement our common vision of an economy that is growing, creating jobs, eradicating poverty and eliminating inequalities; an economy that is built on the full potential of all our people and of all our communities, towns and villages, cities and provinces. Thank you very much. [Applause.]

The CHAIRPERSON OF THE NCOP: Order! I now call Ms N Ndalane, acting chairperson of the Select Committee on Economic Affairs.

Ms N A NDALANE: Hon Chairperson, hon Minister, hon members and special delegates, ladies and gentlemen, on 14 April 2004 millions of South Africans went to the polls for the third time to choose the organisation that would carry their mandate, continue to transform our country and our continent and build a new world order. The majority of our people elected the ANC, because of the confidence they have in its leadership, policies and programmes - that is, the liberation movement on behalf of which I am mandated to speak in this House today.

As we discharge our responsibilities, we must always remember the strategic objectives that we set for ourselves for the next five years. These objectives include increasing the contribution of small enterprises to the economy; making significant progress in broad-based black economic empowerment; increasing the level of direct investment overall and in priority sectors; increasing market access opportunities for and export of South African goods and services; contributing towards building skills, technology and infrastructure platforms from which enterprises can benefit; repositioning the economy in higher, value-added value matrices in knowledge-driven manufacturing and services; and, contributing towards providing accessible, transparent and efficient access to redress economic imbalances.

On 21 May 2004, President Thabo Mbeki set out the tasks facing this administration. As a committee we have organised our work in response to these challenges into four broad-based areas: maintaining a stable macroeconomic environment and increasing the level of investment in the economy; accelerating the implementation of the microeconomic reform strategy; targeting interventions in the second economy; and, implementing a governance strategy to strengthen the institutional capacity for implementation, sequencing, monitoring and evaluation.

The department is planning to establish a microcredit Apex fund, which was approved in the Cabinet lekgotla in 2003. This will contribute towards the integration of the first and second economies of our country. I am giving the thumbs up to our strategies in continuing to support or empower women and the youth in the economy.

We must also focus our attention on developing new products and services to address the specific needs of economic citizens operating in the second economy. This will also require our focusing our energies on exploring ways of establishing partnerships with business chambers and local government.

The President raised a number of challenges facing our Integrated Manufacturing Strategy. The highlights of the state of the nation address noted the following: a declining share of global trade; our trade balance still needs importers of manufactured goods; continued job losses within manufacturing; casualisation, subcontracting and informalisation; decreased demand for unskilled labour and increased demand for skilled labour; and, low productive investment. We strongly support the crosscutting strategies to promote BEE, increase market access for our goods and modernise the regulatory environment as part of our economic reform strategy. We have no doubt that this department will achieve its objectives in the near future.

When the Minister addressed the parliamentary media briefing on 24 May 2004, he spoke at length about the platforms for economic development and growth. He said that as Government we were on track in meeting our target of 80 000 learnerships as per the Growth and Development Summit agreement.

We will be able to address the area of human resources development as we have redirected our focus on scarce skills through Setas and the additional allocation of R400 million that will cover an extra 105 000 students through bursaries. The Minister also highlighted that we were also going to market learnership opportunities to school-leavers and graduates. This will be assisted by the positive engagement of provinces in their economic reform strategies. Now that the MECs are here today, we hope to hear how they are planning to manage the alignment of their plans with the local authorities’ plans to realise greater acceleration of the provincial economies. We hope to hear how provinces are going to stimulate local economic development so that these local authorities can indeed be developmental in nature. This Budget Vote must look critically at this matter of human resources development if we are to move in line with global economic trends.

The experience of the past 10 years has shown that rural provinces find it difficult to attract investment. Our wish is to see more equitable economic development in all provinces. We think there is a need to be biased in favour of rural provinces in attracting investment for the sake of addressing the second economy, because this is the area in which the majority of poor people are located. Some provinces, such as the Limpopo province, have shown their readiness to attract investment particularly in the fields of tourism and manufacturing. We call upon these provinces to redouble their efforts in seeing to it that they add value to their economic strategies.

This department is clearly creating policies and programmes that are, and will, enable the economy to grow and expand the market both internally and externally for our products and services. We commend this department for exploring ways to grow the economy and set up new people in business. We are convinced, as a committee, that this department has the right priorities and that the budget and all its programmes are geared towards the realisation of the policies and priorities.

In conclusion, we want to congratulate the department on promoting trade and investment links with other African countries, on support for Nepad and on the establishment of the International Trade Administration Commission. The conclusion of nine bilateral trade and investment treaties with countries in Africa and the Middle East in 2003 really put our country in the right position to deal with the global economic agenda.

Our committee supports this budget without reservations. I thank you. Ndza khensa. [Thank you.] [Applause.]

Mr D G MKONO: Chairperson, hon Minister, hon MECs, hon members, distinguished special delegates from provinces and hon guests, may I echo the sentiments expressed by previous speakers and congratulate the Minister and the Deputy Minister on their appointments respectively, and wish them well and success in these challenging posts. Chairperson, you will agree that the history of the ANC, which I am privileged to represent today, cannot be written outside the context of the ceaseless effort of the masses of our people to break the shackles of colonialism, with all its ramifications. It is therefore prudent that I begin my speech by pronouncing that the ANC supports this Budget Vote, because as the ANC we are acutely aware that democracy will not be fully realised if the majority of the population does not have access to and control of the economy.

The horrifying income disparities between the rich and the poor countries have unacceptably widened to dismal proportions in the past few decades. Similarly, the majority of South Africans were deliberately and institutionally denied access and participation by the grandiose apartheid policies. The development and support for the SMME programme and the co- operative sector remains a priority for Government. As part of this commitment, it is the Government’s mission to create an enabling environment, which stimulates growth and development of small businesses, resulting in job creation and redistribution of wealth and shifts small businesses from the margins of our economy to the centre. The national strategy for the development and promotion of small business in South Africa was presented to Parliament. The objectives of the strategy are, among others: the creation of a supporting environment for SMMEs; aiding a greater spread of wealth and economic opportunities; creating and upgrading long-term jobs; and strengthening links between big and small firms, as well as rural and urban businesses.

One of the key proposals flowing from the above was the creation of institutions to ensure sustainable support to SMMEs. This strategy involves the restructuring of some of the existing institutions such as the creation of the Ntsika Enterprise Promotion Agency responsible for promoting and co- ordinating nonfinancial support services. These services include enterprise management and entrepreneurship; training and access to information, counselling, extension services, technology and markets; the creation of Khula Enterprise Finance Limited responsible for administering the national credit guarantee scheme and also providing financial and capacity-building support to NGOs, provincial development corporations and banks; the creation of the South African Women Entrepreneurs Network to assist aspiring women entrepreneurs and also those who are already in business; the creation of the Industrial Development Corporation which plays an increasingly important role in both supporting and assisting with venture capital in the formation of new SMMEs; the creation of business partners, the National Empowerment Fund Trust - the list is endless.

Mr Minister, having tabulated the above interventions by the Government, I just want to caution: Please do not be surprised and please do not be disappointed to hear what some of the misguided political parties, such as the United Democratic Movement for instance, have to say. The UDM is neither united nor democratic and certainly not moving for that matter, deducing and demonising government for dismally failing South Africans; hence their slogan, “Ten years of unemployment undermines the people’s democracy”. What do they know about democracy? Shame on them.

I do not want to say anything in this debate to offend my fellow comrades from other provinces, but in the Eastern Cape we share the view that the South African economy is rooted in every village town, city and province of the country. However, the challenge of changing the economic landscape of the country is perhaps nowhere more imperative than in the Eastern Cape, because, due to apartheid policies and historic distortions, inequities run deep in our province and leave trails of poverty, exclusion and unemployment in rural areas as well as in urban areas. Therefore, the imperative to focus attention on the development of the former Bantustan areas of our province forms the basis for planning and searching for solutions. We remain acutely aware, as the Eastern Cape, of the critical importance of speeding up delivery even in other provinces as well. The challenge, therefore, is to ensure that the benefits of urban economic growth are extended to the rural hinterland through productive forward and backward linkages that will stimulate primarily production in agriculture, forestry, mining and fishing.

The role of Government in this respect is evidently clear and that is to invest in critical infrastructure that provides an operating environment, which will attract and keep sustainable private sector investment. But one fails to understand why - and this is the question we need to ask in this debate - after all these achievements by the ANC-led Government there this perpetual campaign by the conservative DA and its allies that people should fight back? Fight back what? Even more worrying is the shortsightedness of the DA to go out of its way to project a negative image of our country by giving the impression, and highlighting both in Africa and abroad, that crime is a major problem in South Africa, and that we have the crime capitals of the world. They even tell companies to disinvest in South Africa and encourage them to rather go to the London Stock Exchange and Wall Street in USA - all because what is bad for South Africa is good for the DA. What a shocking naiveté.

Contrary to the DA’s intention of chasing away investors by creating fear, what is pleasing to see is that the people of South Africa prefer a sober and constructive opposition. South Africans have learnt from the nonsustainability of apartheid and therefore they are not prepared to be misled by the DA’s ideology. In fact, the majority of white people are incredibly happy to be here because they have a chance to achieve things they could not have achieved elsewhere. In spite of all that rubbish by the DA, people see the ANC as their saviour, so we are a formidable force. We are proudly South Africans and we will succeed in our endeavours because more than ever before, we are convinced that the tide has turned and the people’s contract for a better tomorrow is taking shape.

Ngamanye amazwi Mhlalingaphambili, ngesiNtu ngeba ndithi ngoobhobhoyi, ngoochebintuli noonkalimevana kuphela abangayiboniyo le nkululeko yale minyka ilishumi siyigqithileyo. Andazi ke ukuba ootata abadala njengoobaba uMzizi aba banentloko engathi libala lokudlala igalufa baze kufuna ntoni na apha ebelungwini. Enkosi. [Kwahlekwa.] [Kwaqhwatywa.] (Translation of isiXhosa paragraph follows.)

[In other words, Chairperson, in my language I would say that the people who do not see the freedom of the last 10 years are ignorant, wild creatures and not human beings. I do not know what the old people like Mr Mzizi, with bald heads the size of a golf course, is doing here among the white people. [Laughter.] [Applause.]]

Dr B MALAKOANE (Free State): Thank you so much, Madam Chairperson. The Minister, MECs present, permanent delegates and special delegates, I need to start off by indicating the Free State’s position on trade and investment promotion, which recognises broadening the economic base as one of its main challenges, wherein key objectives have been identified. These are job creation, pushing back the frontiers of poverty, reducing inequalities through empowerment or affirmative action, and the overall growth of wealth and skills development.

The key tools identified for usage include the trade reform process and access promotion; the encouragement of small and medium enterprises and black economic empowerment promotions through partnerships; enhancing and enabling foreign direct investment; encouraging the practice of fair competition within a specified regulatory framework; and integrating human resource development, preferential procurement and supply-chain management as economic development tools. Supply-chain management within itself needs to be recognised as a tool that has to foster and influence joint ventures, SMME promotion and black economic empowerment, and as a tool that can be used as a means to promote and regulate competition with a particular bias. Other tools are the promotion of skills development, including occupational skills and adult-based education and training for affirmative action and employment; the support of innovative research and development for competitiveness and social benefit within specified growth sectors; intergovernmental relations at provincial and local government levels, and interdepartmental relations within provincial governments.

Regarding the growth sectors in support of a growing economic base in the Free State, as we recognise them, the Free State Provincial Growth and Development Summit that was held last year agreed that the effective use of sector strategies based on sector co-ordination and partnerships in identified sectors was needed to restructure the provincial economy towards equitable and employment creating growth. Sectors such as the agri- industry, petrochemical upstreaming and downstreaming, mineral beneficiation, tourism development and promotion, and infrastructure development through the Expanded Public Works Programme are sectors that need to be hugely penetrated, promoted and developed, through the creation of access to finance and support from a variety of programmes, such as the Agricultural Credit Scheme, the Apex Fund, the National Empowerment Fund, development and investment co-operations, which in our case is the FDC, the Umsobomvu Fund, and by co-operatives, partnerships and joint ventures, companies and individuals.

Our province’s value chain in this economic review process entails looking at the macroeconomic stability in terms of which our country has achieved a level of macroeconomic stability not seen in a period of about 40 years. This has created opportunities for real increases in expenditure on social services and a reduction in costs and risks for all investors, as a result laying the foundation for increased investment and growth. Therefore attracting foreign direct investment into the country in general, and the Free State in particular through sound information packages and information management becomes a sine qua non, particularly because of the inclination of the media to portray the South African story as a confusing drama, rather than a saga of steady improvement.

On the investment front the country’s foreign direct investment has been positive on balance, and foreign investments have been seen in such sectors as the motor vehicle industry, the chemical sector, and the mining and dairy product sectors. Over and above that, since the beginning of the year 2000 there has been an improvement in net foreign direct investment, including greenfield investments, wherein there are major investments in new projects and plants. Regarding growth and wealth, since 1994 there’s been little over 1% of real per capita growth and South Africans grew wealthier at a rate slightly faster than 1% per year. This may be viewed as an unspectacular performance compared with most developing countries, but it has been steady. On the employment front, from the period 1995 to 2002 over 1,6 million net new jobs were created. During the same period, a slight increase in unemployment of approximately 2 million people was observed. A key point to note is that, while many unskilled workers are unemployed, there is a shortage of suitably qualified workers, which is a constraint on expansion. Skills sets often identified as those in short supply are financial services, information and communication technology skills.

On the trade reform, industrial restructuring and policy fronts, the reshaping of trade and industrial policies is reflected in an improved balance of trade and in a shift from primary exports to tertiary exports. These achievements are due to the Government’s success in supporting and promoting multilateral rules-based global trading regimes and the use of general and targeted supply-side measures. Key initiatives include the negotiation of the SACU agreement, the negotiation of the SADC free-trade agreement, the negotiation of bilateral trade and aid agreements with the European Union, and the aiding of South African exports through the AGOA provisioning. These activities are contributing to new trade activity and to new foreign direct investment in South Africa and the provinces up to local government level.

Therefore, state leverage, in this regard, is an economic imperative and has to be done through relevant deals, and should be supported. The Free State does do so. Export-orientated, efficiency-seeking manufacturing investment has been actively promoted, in order to generate employment, skills transfer and the stimulation of innovation in local firms. This has to be continued and encouraged. The Free State is ready and is on course.

Government has encouraged investment in Africa and domestically through the liberalisation of capital controls; and the economic diplomacy in expanding and deepening economic ties with Africa and the global community has led this country to making a strong commitment to promoting the interests of the African continent. The provincial governments have joined the party with their trade missions, and the Free State is also a player. This has led to trading networks and export markets with our strategic partners and traditional trading partners. This process has to continue and be taken further for the benefit of all. This has to be done through and within the context of SADC and Nepad, and this will provide a coherent and comprehensive development agenda on social and economic policies and behaviour, and will filter through to all the provinces.

The trilogy of government in terms of national and provincial and/or local government and civil society and the business community as partners in black economic empowerment, especially in those areas that depend on the private sector and civil society attitudes and behaviour for investment and employment creation, has to be amplified and vigorously activated through the reactivation of the National Development Agency, the Umsobomvu Fund, etc, and new tasks have to be incorporated into its existing work, which might lead to medium-term gains.

It remains important to clarify the focus of strategies with respect to the different sectors of the SMME community in which the formal sector is relatively stabilised and largely within the first economy, with the informal and grey sectors progressively increasing and found mainly within the second economy. The experience with regard to SMME creation in this regard is reflected in the very modest impact that Khula, Ntsika, Namac, the Umsobomvu Fund and the Small Business Council have been making and doing in this regard. This is commendable, and much more has to be done. Therefore, intergovernmental and interdepartmental relations within provinces in this regard have to be promoted. It is, therefore, these sectors that are in the second economy that need assistance and support, and that’s where our people, in the majority, are operating.

In conclusion, the national economic priorities are comprehensive, coherent and co-ordinated. That is why the national Government has been successful in ensuring macroeconomic stability; in improving trade regimes; and in taking advantage of the country’s natural resources, and physical and financial infrastructure; and provincial and local governments have to take the baton and run with it.

There is an opportunity to contribute and add more value, to reduce South Africa’s risk rating even further, through robust marketing strategies. The global economy will continue to have implications for the domestic economy, and we are on course to be a cut above many. This is a cherished ideal and because South Africa is smart we shall prevail. We support this Budget Vote. I thank you. [Applause.]

Ms J F TERBLANCHE: Chairperson, all protocol observed, the DA has welcomed the relaunch of the National Empowerment Fund, NEF, as long overdue. The over-riding ambition of the NEF must be truly broad-based empowerment. It must successfully create access to the economy to those who suffered an inhuman denial of opportunity under apartheid, and who still suffer a lack of opportunity today, because this Government has failed to create the conditions necessary for more rapid economic growth.

The new vision for the NEF will allow it to be used as a tool to shift empowerment from being focused on a lucky few millionaires and billionaires to the courageous and hardworking ordinary South Africans who alone can spur enterprise and growth in our country. The original focus of the fund, namely to provide investment scheme trusts, would have resulted in the creation of a handful and super-wealthy black business people - just the type of individual empowerment that has been propagated through recent so- called BEE deals.

Thus, the relaunched NEF will only succeed if its focus is on the provision of financial support for employee share schemes and community and rural- based projects and co-operatives. While we applaud the positive effect the fund should have on the funding of South African business development, we are wary of the confusion that could stem from the launch of yet another financing agency.

The Department of Trade and Industry needs urgently to review and simplify the plethora of financing and business support agencies established in recent years. The system as it is currently structured creates confusion and is inefficient. Consider, for example, the incomprehension of a budding businesswoman seeking Government support as she faces the NEF, the IDC, Khula, Ntsika and the Apex Fund. In 2002 Minister Erwin suggested the formation of an integrated financing agency, a one-stop shop, to deal with this very problem. I am grateful to hear that the new Minister took up the suggestion, and I hope that he will pursue it to its very necessary conclusion.

Finally, I want to deal with a further point. Unemployment is without question the biggest problem facing South Africa today, because it drives poverty and crime, and denies the people of our country hope for the future. The Government needs to adopt a bold new attitude to economic and employment growth, and that means tackling the microeconomic obstacles to job creation, the most important being the rigidity of our labour regulations.

We need to follow the example of developing countries like China, Mexico, Mauritius and Malaysia, and establish export-processing zones in which the costs to investors are significantly slashed. These zones will, therefore, attract foreign direct investment and spur job creation, initially in low- paying, low-skill jobs, but over time in better-paying and more highly skilled jobs. The DA has been calling for such an initiative for years. We do so because EPZs will provide a ladder up into the first economy for those in the second economy.

Tomorrow is Youth Day, and if there is one thing that we as leaders and public representatives owe the youth of our country it is the prospect of a future in which they will be able to fulfil their dreams. Without job creation today, that future is impossible. Thank you. [Applause.]

Mr K SINCLAIR: Chairperson, I am just laughing at the side comment here. The hon member from the DA had the audacity to call me a comrade. [Laughter.]

An HON MEMBER: Are you ashamed of that?

Mr K SINCLAIR: No, I am certainly not ashamed. When I contribute today, I want to speak on behalf of my province. I do not want to degrade this debate to a political debate, but rather uplift it to a provincial debate. When I speak, I speak on behalf of 822 000 people who are living on 361 square kilometres, which is a third of the geographical area of South Africa. I speak on behalf of a province that has an official unemployment rate of 14,4%, a province that is rich in minerals and agricultural activities, but a province that, because of various reasons, has not achieved its rightful position in the South African economy.

The two economies that our President referred to, and which the Minister referred to here today, are indeed prevalent in our province, the Northern Cape. The Northern Cape has lots of potential. We have the climate, the water, the people, the space, but above all, we have the will to achieve a better life for all our people in the province. Our province also has international borders with Namibia and Botswana, and it has an underdeveloped West Coast of more than 400 kilometres.

The issue I want to raise today is: How does the Northern Cape fit into the bigger picture of the South African context regarding development and development corridors and zones? When we look back regarding what has happened in the past 10 years, it is good and well that Gauteng, the Western Cape, KwaZulu-Natal and also the Eastern Cape were put on the map regarding economic activities.

The question that I want to raise today is: When will the time arrive that there will also be a real will and a strategic objective to move away from the planning of boardrooms to the reality of the Northern Cape? This department must be the standardbearer for development. The people of the Northern Cape are very grateful for what the department has already done, but hon Minister, if you look at the poverty and the unemployment levels in our province, it is certainly not enough. The two economies are prevailing.

Therefore, Minister, I want to plead here today that the DTI must embark on a renewed approach to also make the Northern Cape part of the mainstream thinking and the activities of the new economy. Our province is situated in a very good position. Angola, as a country, is in the process of revival. Many of the products to Angola from South Africa must go through the Northern Cape.

Part of the reality of the economy of our province is that value- adding to raw products is taking place outside our province. Regarding that, it is essential that Government must take a principled decision to launch initiatives that make it worthwhile for investors to add value to an abundance of raw products, also in the Northern Cape.

When will the day come that the Northern Cape will also have its own Coega, Iscor and manufacturing plant? These are the sorts of questions, Minister, which the people of the Northern Cape are asking. We must acknowledge that all the people in the Northern Cape cannot be small farmers, miners or people involved in some sort of SMME activity. The reality is that the Government must make a principled decision about the Northern Cape and its importance, and there must be a major economic injection in our province.

The DTI and institutions like the IDC and initiatives like the public- private partnerships are positioned to contribute towards creating wealth, and through that improving the quality of life of the people of this province. I, therefore, in conclusion, hon Minister, want to plead with you today, let us also put the Northern Cape on the economic map of our country. I thank you. [Applause.]

Mr C J VAN ROOYEN: Chairperson, hon Minister, hon members, MECs, special delegates, comrades, ladies and gentlemen, as this is my maiden speech, I firstly want to acknowledge and thank the ANC for the affording me the privilege of serving in this hon House.

Vision 2014 of the ANC manifesto states that focus should be placed on:

… the measures that can and will set our country on the road to faster realisation of the ideals of our Constitution - a free South Africa that truly belongs to all who live in it, a South Africa whose wealth is used to improve the quality of life of all citizens and a South Africa that works with humanity to build a better Africa and a better world.

Therefore, the quest to accelerate economic growth and job creation, accompanied by an equitable and fair distribution of the benefits, serves as the overall objective for the Government and the Department of Trade and Industry. In order to engage in a meaningful discussion on the subject of South Africa’s second economy and the important role that the DTI plays therein, I believe one has to define the components, namely, the South African economy in terms of its neighbours and the rest of the continent, and the concept known as the second economy.

South Africa has a gross domestic product four times that of its Southern African neighbours, which equals approximately 25% of the entire GDP of Africa. This country leads the continent in industrial output and mineral production, and South Africa also generates most of Africa’s electricity - more than 50%. Before and since 1994 the ANC based its economic policies on the ``ready to govern’’ and RDP documents, wherein the key economic objectives were identified as job creation, the elimination of poverty, the reduction of inequality, and the overall growth of the wealth of the country.

General approval of these policies for managing the economy has been increasing from around 45% in 1999 to 53% in 2003. This was also confirmed by the overwhelming victory at the ballot box, and support for the people’s contract. We must therefore congratulate the DTI for the leading role they played in this regard. The South African economy is made up of two parts, the first economy and the second economy. The first economy behaves like a developed economy that includes those elements that are increasingly integrated into the global economy, where people are formally employed, whether full-time, part-time or are subcontracted; in other words they earn a living.

The second economy is made up of small entrepreneurs, who are owner- managers and suppliers of services and products to the first economy, the informal sector and the rural women who apply their skills to feed their families. People in this sector are largely making a living. It is therefore important to distinguish between earning a living and making a living. There are significant signs that Government’s new thinking is organised around the concept of two economies.

In his February 2003 state of the nation address President Thabo Mbeki described the division between these two economies as structurally faulty. The one economy is modern and relatively well developed. The other is characterised by underdevelopment and an entrenched crisis of poverty. The second economy, he argued, is structurally disconnected from the first, and is incapable of self-generating growth and development.

What is required, he suggested, is state intervention through a series of programmes such as microcredit for the poor, intensified skills development, and a massive public works programme. In other words, there is a need to transfer resources to the second economy to empower the working poor and those in the informal sector.

It is in the rural areas, where job opportunities are few and far between, that the establishment of a business is the only option available to the unemployed. Critical areas that need intervention include the following: access to nonfinancial support and information, access to finance, access to markets, skills development and mentoring.

We notice with interest that the Department of Trade and Industry identified flagship projects, which, according to the Director-General, are non-negotiable, that will be delivered on before the end of this financial year. These include finalising the credit law reform process, merging Ntsika and the manufacturing advice centres into a single enterprise development agency, disbursing the first loan of the Apex Fund targeted at micro-entrepreneurs, implementing a cooperative development strategy, and implementing the Broad-Based Black Economic Empowerment Strategy.

On the question of black economic empowerment, it is critical to understand the magnitude of the systematic and purposeful exclusion of the majority of South Africans from the economy by the apartheid system, to enable us to appreciate why we need to act together as a nation to bring about an economic transformation in the interest of all. Any suggestion that South Africa does not need the black economic empowerment strategy therefore shows complete lack of insight.

I do not think this is rocket science; I think the DA should listen very carefully. One of the exciting new projects initiated by the Department of Trade and Industry is the implementation of a co-operative development strategy, where persons could voluntarily join together to meet their economic, social and cultural needs through jointly owned and democratically controlled enterprises established on the following principles; self-help, self-reliance, self-responsibility, equality, equity and democracy.

Co-operatives could play a significant role in eliminating poverty and creating jobs in the development nodes identified by the President in his state of the nation address earlier this year. Provincial and local governments have an important role to play in ensuring that co-operatives are developed and supported in their areas. I would therefore appeal to provincial and local governments to give full support to this new initiative and to give this programme every chance of success, which would lead to effective and sustainable job creation in rural areas in the short and medium term.

One of the main challenges in the development of the second economy remains the concept of integrated development planning, and is one of the most important instruments of co-ordination between provincial and local governments. Such co-ordination is critical since service delivery by all spheres of government comes together at the local government level.

In conclusion, South Africa being the land of opportunity therefore needs to develop a culture of entrepreneurship that matches the so-called American dream. We need to translate our passion for sport into a passion for doing business. The initiatives of the DTI, I believe, go a long way to creating the necessary environment, and to stimulate entrepreneurship in South Africa. I thank you. [Applause.]

Mr P G MASAULLE (Eastern Cape): Madam Chairperson, pardon my inability to manipulate this technology. Hon Minister, hon MECs present and hon members of this House, it really gives me pleasure to participate in this debate. May I, from the onset, Madam Chairperson, echo your words by congratulating the Minister and the Deputy Minister on their appointment. There is something that is so sweet about it. I do not know what it is, but every time that it is said, it really makes us feel good. I thought I needed to say it once again.

The President of the country and the Premier of our province, guided by the masses of the people of this country, have clearly mapped out the challenges ahead of all of us. I dare say that what remains is for all of us to put our shoulders to the wheel and get our country going. This is what, as the province, we have undertaken uncompromisingly to pursue in order to deal with the challenges of job-creation, poverty eradication and growing the economy of our country.

In welcoming this budget presentation I want to assure the Minister of our unqualified support. We are particularly pleased about his reference to continuing in the footsteps that have been laid by his predecessor, particularly as it relates to intergovernmental operation. That, we think, is at the centre of all the progress that we could achieve, and I want to say that he is assured of our support.

As a province, consistent with the rest of the country, we are not immune from some of the economic features that have been identified. We also, on the one hand, have areas that are highly developed industrial centres that have the ability to compete in the global economy, as well, on the other hand, as areas that are backward, isolated and underdeveloped. We think that it is quite appropriate to lift this out, so as to develop appropriate interventions to deal with those situations. We have accordingly sought to create the necessary synergies. I was not worried at all, in fact I was pleased, when the Minister raised the question of all of this taking place in the context of local municipalities that have local economic development initiatives and district municipalities that have integrated development plans. We have developed a provincial growth and development plan that takes into account all those plans, so as to create the necessary synergies, so that we do not have the situation as captured in the Minister’s remarks. But, indeed, I think it is further refining and doing much work in those things that will ensure that we will perfect it.

We have identified particular areas that we, as a province, think need particular attention and indeed we are giving such attention to those areas. Recognising that two thirds of the population is nonurban and that the province is only 20% food self-sufficient, we have undertaken an exercise with which we think, through co-operation, we would be able to maximise the benefits from such a massive food production programme that is aimed at increasing food production in our rural households. We have targeted such areas as O R Tambo District Municipality, Alfred Nzo and Amathole because of the agricultural potential that is found within these areas.

Critical, though, in these efforts, is the imperative of creating and promoting a cadre of viable black commercial farmers. In this respect, we think that access to land, access to market information and credit are but key instruments that will help us leverage the potential in this regard. We do hope that through initiatives like the Apex Fund, as well as the Agricultural Credit Scheme, we shall be able to breed success for ventures of this nature in order to promote growth in the agricultural sector, as well as provide the much needed employment, providing raw materials for some initiatives, which I think the Minister has made reference to, agroprocessing, and indeed to those industries that are reliant on the natural resources.

Another component which, together with the Department of Trade and Industry, has been embarked upon, is that which has to do with the motor industry development plan, and indeed we think we have reached a point now where we are articulating very sharply and indeed in sync with the Department of Trade and Industry.

In terms of industrial diversification, we think that in those existing centres, particularly the Nelson Mandela Metro and Buffalo City where we have such high growth and export-led manufacturing industries, we can now do more in terms of ensuring that we expand the supply chain and ensure the emergence of micro and medium enterprises in the motor manufacturing side.

We think that it is an area that will enhance the competitive edge that we have in that respect, and indeed again we are seeing successes in this as reliant upon continued support and partnership amongst all the role- players, particularly the role that has to be played by central Government.

We have two industrial development zones, IDZs, in the province. In our view they have the potential not only to increase foreign direct investment, but also to increase our exports, but we do think that their success will have the benefit of expanding the local economy. We, however, want to raise a few things which we think are in keeping with the co- operation that exists. If those opportunities are further looked into, it will indeed help to expedite some of these.

The President has spoken about the need to make sure that we look at reducing the input costs in terms of ensuring that we are able to attract investment, etc. We think that rail transport can play a major role in that respect, particularly for areas like Coega. We do think that the rail linkages, particularly between the Northern Cape and our province, are crucial and have to be looked into in the same way as the rail linkages between East London and Johannesburg. We think that through these we will be able to maximise the benefit in term of those economic opportunities that we have in these areas.

The continuing high-level support of these initiatives is always heartening and highly appreciated. Only today we read in the newspapers that the Minister of Public Enterprises is committing that with or without Alcon there will be a smelter in Coega. That is the good news for the province and for the rest of the country, but we know that it is through collaborative efforts that we are able to have such levels of confidence in terms of where we are going. We are quite appreciative of those.

The hon Minster has already raised the question of ensuring we synergise our activities between local municipalities, and I have made reference to that. We think that it’s an area where we could do much more to perfect it, but already we have begun to work on it. The Minister is most welcome, through the avenue that he has created, to assist in ensuring that those yield the results that we expect. We could sound as though we are repeating ourselves, but once again I wish to say that, as a province, we support this Vote, and we are looking forward to working with the Minister and this department. Thank you very much.

Mr M N RAJU: Hon Chairperson, hon Minister, hon MECs and hon colleagues, my party welcomes the hon Minister’s assurances in respect of establishing and sustaining partnerships with private agencies, traditional leaders and community institutions. Such private-public endeavours by the DTI are a sure recipe for greater unity of purpose and a deepening of economic strengths for the ultimate benefit of all South Africans. We support the Minister’s call to the provincial MECs, local unicity metro councils and other role-players to strengthen co-operative governance, so that every citizen in every quarter of South Africa will feel part of a joint endeavour to improve the quality of our lives. Furthermore, the Minister’s plans to launch a team economy to enhance the concept of co- operative governance is welcomed, and my party wishes the hon Minister every success in his endeavours in this regard.

We wish to underline the importance of the empowerment of workers. If growth and investment is to be speeded up, workers’ skills and expertise are important areas of focus. Growth and development require improved education, training and skills enhancements. Progress in social security and job-creation contribute to economic development. We call for greater levels of consumer awareness, consumer protection and consumer education.

The Minister in his speech reported the department’s intention to merge Ntsika and manufacturing advisory centres to provide a better service to small enterprises and to make DTI facilities easily accessible to economically active citizens. My party fully supports these laudable initiatives and urges the Minister to ensure that these incentives and initiatives are adequately disseminated to the broad public. The good intentions of the hon Minister must not falter at the altar of poor communication and poor education. The people must be informed and made aware of the good news that the ministry wishes to send to the people.

Our global economic strategy is trade, and economic development must consider sustainable growth as its departure point. South Africa’s broad industrial strategy cannot be developed in isolation, relations with the rest of Africa, SADC countries, Nepad and with developed and developing trading partners is a sine qua non for substantive economic progress.

Policy development in international trade must continue to be strengthened. And here it is heartening to note, for instance, that exports to India have risen by 25%. Negotiations with States such as Brazil and Nigeria must bear fruitful results to create work opportunities for unemployed South Africans.

It is no surprise that Africa forms the focus of South Africa’s global economic strategy. Partnerships with countries within the Continent must be considered vital and strategic. It is a matter of concern, however, that in 2002, for instance, approximately 16% of South Africa’s exports were destined for the rest of Africa, but unfortunately the imports from the continent were not commensurate, being only about 4% of South Africa’s total imports. Multilateral economic relations are also important in the world scheme of economics. The World Trade Organisation in partnership with Bretton Woods Institutions, the World Bank and the IMF have been setting the parameters for and directing the economic policies of governments around the world.

This has had serious implications for the content, evolution and trajectory of economic development strategies pursued by developing countries, including South Africa. As the process of globalisation has been questioned, it is imperative for South Africa to influence and shape the configuration of the emerging system of global governance. This is best done by participation, actively and effectively, in all multilateral forums for maximum benefits accruable, not only to South Africa, but to the African Continent as a whole. The IFP supports the Vote. Thank you, Chair.

Mrs P C NGWENYA: Thank you, Madam Chairperson, hon Minister, hon MECs from the various provinces who are here, hon members of the NCOP and colleagues. Jerry Eckert, then a visiting professor of development economics at the University of Cape Town during 1991, wrote about changing economic conditions in South Africa. He said:

Major economic change within South Africa will flow from two basic sources. First is the vital need for economic transformation that will sustain the political process now underway. Most political parties espouse the common goal of a non-racial democratic society. This seemingly simple goal predetermines much of the direction and content of the economic transformation.

For democracy to be more than a sham, with vested power entrenched and concentrated by economic rather than political rules, the bulk of the population must feel that they have equal access to the economic mainstream and that it is treating them fairly. Existing inequalities must be closed until remaining differences reflect true marginal productivities. Since inequalities in South Africa are defined along racial lines, economic parity is also required for the goal of a nonracial society. This was said three years before the first democratic elections in 1994. If we look back at the ten years of our democracy, what do we see? We definitely see a country whose new democratic government has managed to deal with the deep- seated structural problems in the economy inherited in 1994. The DTI has been responsible for reintegrating South Africa into the world economy, thus improving the country’s competitiveness. The change in the economic strategy from an inward looking economy towards an export driven growth strategy, led the exports growing at a rate of 25% between 1996 and 2000.

Our exports are diversified to ensure that we do not rely on exporting raw materials, but that a substantial proportion of raw materials is being processed locally, thereby adding value and determining prices locally. Indeed, 1999 value-added manufactured exports were contributing 24% of the total exports. From 1995, passenger vehicle exports rose by 37% every year, while the export of motor vehicle components has increased by 31% on average. The success of the motor industry development programme and the fact that through this programme our country is the only producer of the BMW 3 series in the world, is another achievement that has been made possible by the commitment of our Government, through the Department of Trade and Industry, to ensure that our economy is modernised and has the capacity to deliver export products that meet global standards.

This is a success story that I believe must not be undersold and must be made known to our nation, especially to the younger generation. Manufacturing in general has grown by 5,4% and our South African products are competing well against their First World counterparts - such as South African wine, meat products, motor vehicles and motor vehicle components, to name but a few. The nature of trade agreements reached with the developed First World, championed by the Department of Trade and Industry, have resulted in an enabling macroeconomic environment which manifests in reduced inflation and steady interest rates.

In the first decade of our freedom, the DTI has increased the contribution of small entrepreneurs to the Gross Domestic Product. Yet the challenges remain enormous and some, like capacity building, will be addressed by measures such as the planned merger of Namac and Ntsika as announced by the President in the state of the nation address.

More than 726 small entrepreneurs have thus far benefited from the Small and Medium Enterprise Development Programme. Only the lack of access to finance must be addressed as this remains one of the serious problems confronting the SMMEs at the grass-roots level. The DTI has made significant progress in broad-based black economic empowerment. Today we have a strategy and a broad - based BEE Act in place. Although today we not only speak of black millionaires, but also of black billionaires, ensuring that broad-based empowerment remains a serious challenge confronting our Government, and the DTI in particular.

The DTI has increased market access opportunities and exports for South African goods and services. During this period, 3 000 exporters have been assisted through the Export Marketing and Investment Assistance Scheme. The DTI’s response to the constraints in the regulatory environment was to entrench the principle of equality, where all citizens are equal, irrespective of sex or their geographical location. The department’s activities have therefore impacted upon overall economic output, employment, the establishment of women-owned BEE enterprises and the equitable geographical spread in investment within South Africa.

The introduction of co-operatives will, over and above everything else, ensure that the poor no longer have their hard-earned savings swindled by unscrupulous pyramid schemes, but this will also ensure that these processes are further deepened, especially with a specific focus on rural economic development. It is, therefore, our democratic duty as true patriots to encourage the DTI to aim for greater heights as the country still needs more employment opportunities, and more economic growth and development. The key objectives of the DTI over 2004-2005 to 2006-2007 remain very relevant and must be pursued with more vigour and these are: To increase the contribution of small enterprises, particularly to the economy; to significantly take forward the broad-based BEE; to increase the level of direct investment in the manufacturing and services sectors; to increase market access to opportunities for and export of SA goods and services; to contribute towards the building of skills, technology and infrastructure platforms from which enterprises can benefit; to repositioning the economy in the higher value-added segments of manufacturing and services; and to contribute towards the provision of accessible, transparent and efficient access to redress and fair and just recourse for economic citizens such as consumers.

The track record of the DTI thus far in meeting its objectives is ample evidence that the budgets over the years have thus been well spent, and will therefore still be well spent in the coming years. I therefore recommend that the proposed budget for the DTI be fully supported. I thank you. [Applause.]

Ms S CHEN: Hon Chairperson, hon Minister and hon members and guests, this is my maiden speech in this great House. I am very glad to be part of this team and I would like, first, to congratulate the Minister on his appointment to lead the Department of Trade and Industry. The DA has thus far been extremely impressed by the Department of Trade and Industry’s presentation of economic policy and would therefore like to congratulate the department on a job well done. Of course, it is in the careful implementation and execution of sound policies that success can be ascertained and the benefits filtered down to grass roots, to where they really matter. The DA would therefore like to wish the Minister and his department prosperous success in the service delivery associated with the policies and offer our assistance where required.

In line with the announced policies of the DTI, we believe that some suggestions can be made that will further contribute to and enhance the existing policies and regulations. I will briefly outline the suggestions. An important section of the DA’s economic policy refers to the employing of unskilled labour in South Africa. This is an imperative concern in our country and a major contributor to our extreme unemployment problem. The first part of the solution is to create an environment attractive to large foreign investment and local entrepreneurship. This will stimulate demand for labour in manufacturing and production.

To address this issue, the DA suggests the establishment of export processing zones, or EPZs. An EPZ is an area of land that is demarcated for the development of industries geared specifically towards export. The major aim of an EPZ is to decrease unemployment among semiskilled and unskilled citizens in South Africa, while at the same time increasing productivity and investment in the country.

For EPZs to be attractive to business they will need to offer several incentives. These will include efficient and effective issuing of import and export licences; tax holidays for certain periods or special tax deductions; duty-free imports of machinery, equipment and raw material; exemption from legislated minimum wages and more onerous labour laws; work permits issued to foreigners offering expertise; and the provision of off- shore banking facilities.

South Africa has often been criticised for having a dual economy and being both a First World and a Third World country. This situation, however, offers us advantages over other developing countries in that we already have a sophisticated economic and political system, superior communications, financial and logistics infrastructure, and a visitor- friendly environment. Implementing EPZs will be that much easier for us because we have this existing infrastructure.

Many previously developing countries have already benefited from such a model, and one such example is Taiwan, Republic of China. Taiwan established the world’s first economic processing zone in the 1960s. The purpose of their policy was to balance industrial development, increase job opportunities and slow down the migration of the population from rural to urban areas - goals very much applicable to us as well. To date, three such EPZs have been established and more than US$600 million has been invested in Taiwan as a result of the establishment of the EPZ programme.

The CHAIRPERSON OF THE NCOP: Order, hon member!

Mr V V Z WINDVOЁL: Hon Chair, will the member take a question?

The CHAIRPERSON OF THE NCOP: Hon member, can you take a question?

Ms S CHEN: Okay, I’ll try.

Mr V V Z WINDVOЁL: She must not try; we want a very satisfactory answer. I want to know which country on the African continent succeeded with the concept she is speaking about.

Ms S CHEN: I apologise; I didn’t hear you. Could you repeat your question? Thank you.

Mr V V Z WINDVOЁL: For the sake of progress Chairperson, I will relay my question and ask it outside the House. [Applause.]

The CHAIRPERSON OF THE NCOP: Continue, hon member.

Ms S CHEN: Thank you. Can I carry on? [Interjections.] To date, three such EPZs have been established and more than US$600 million has been invested in Taiwan as a result of the establishment of the EPZ programme. Furthermore, the three zones combined have created almost 70 000 jobs. Such EPZs offer a shortcut for developing countries like South Africa that are marching towards industrialisation. Around the world many other countries such as India and China have already begun to implement this model.

South Africa is no doubt a unique country with attributes and issues different to many others. Nevertheless, we can learn from other countries’ success and adopt a model that we can customise to suit our specific requirements and meet our needs. Hon Minister, the DA urges you to consider our suggestion and make additional yet substantial contributions to our economy, increase job opportunities and reduce poverty and unemployment. I thank you. [Applause.]

The CHAIRPERSON OF THE NCOP: Thank you, hon member. Let me welcome the hon Minister in the Presidency, hon Mr Pahad. You are always welcome in this House. [Applause.] I also want to welcome the hon Mr Gibson in the gallery. [Applause.] I hope in the next term he will be part of this NCOP as a member in this House, and not sit in the gallery.

Ms L BROWN: Thank you, Chairperson. Madam Chairperson, Deputy Chairperson, Minister of Trade and Industry, Minister in the Presidency, my fellow MECs and members of the NCOP, comrades and friends, the Western Cape welcomes the DTI budget speech and we commit ourselves as a province to continue to build and deepen co-operative and developmental government within all three spheres of government so that we ensure that the quality of our people’s lives is bettered. In fact, it’s a constitutional obligation, but you are probably wondering why I raise it here again. This is the first time that the Western Cape is under an ANC government. [Applause.] So it is very, very important for us to restate that.

The commitments and programmes that the DTI will embark on this year will help us in the Western Cape to give substance to the mandate that our people gave our government during the elections. I am pleased that, very broadly, our vision and programmes in the Western Cape are aligned with those of the DTI.

The government in the Western Cape, and my department specifically, finds itself in the frontline in the battle to create sustainable jobs and economic growth. Everything we will do, naturally, will contribute considerably to reducing poverty and creating a better life for all our people.

The challenge to implement the right policies that lead to job creation and economic growth is therefore enormous. Fortunately my predecessor, now the premier, Ebrahim Rasool, has done much work to ensure that we have the broad banner of IKapa Elihlumayo - growing the Cape, sharing the Cape - as a provincial developmental strategy to stimulate the economy.

One of the biggest challenges we have in the Western Cape at the moment is unemployment and it stands at around 24%, which roughly translates into something like 500 000 people. Of those 500 000 people, mainly in townships and rural areas, 80% are young people. In general there are fewer jobs for lower-skilled workers and the decline in employment opportunities for this group continues.

We really need to realise - and it gives us an opportunity now as the Western Cape government - that we need to ensure that we intensify black economic empowerment and that we intensify the programmes around small and medium enterprises, so that we can grow our economy through our microeconomic interventions. If we don’t do this, our economy will not realise its full potential.

But I think perhaps more critical is the fact that we need to address the very low success rate for African job seekers in the Western Cape. The actual provincial rate is about 10% of the national figure for African job seekers. So three out of 100 African job-seekers will get a job in the Western Cape, and 30 out of 100 coloured job-seekers will get a job in the Western Cape.

Against this backdrop the centrepiece of our work in the Western Cape this year will therefore be to develop and continuously update a comprehensive, detailed, intellectually sound and widely agreed-upon microeconomic strategy for the province, which will inform all interventions made by the provincial government of the Western Cape in the economy.

We are also tasked with implementing major interventions flowing from the microeconomic strategy in conjunction with our social partners and other spheres of government in a manner that crowds in all available domestic and international resources required for success.

Our microeconomic strategy and the provincial growth and development strategy processes will yield provincial strategies and interventions, and this will be done in mainly five categories. Firstly, there will be sector- based interventions. They will be at the primary level, which is agriculture, aquaculture and associated value chains, manufacturing, clothing, textiles, leather, metals, engineering, boat building, ship repair, the oil and gas service hub, etc. On the service level it will be tourism, call centres and business process outsourcing, information and communication technology and, of course, film.

Then there will be theme-based interventions and we will have to develop strategies and interventions on the following crosscutting themes that contribute significantly to global competitiveness in all sectors. So it would be innovation, new materials, new technology, a provincial manufacturing technology strategy, design and industry, energy, logistics, HIV/Aids, ICT, e-commerce, and a high-tech and an HRD strategy that deals with the lower skill levels as well as people who are unskilled in the formal sense.

Thirdly, there will be the economic participation interventions and these would generally have to deal with equity issues, which will include several comprehensive strategies and interventions, including the areas of BEE, women’s economic empowerment, youth economic empowerment, empowerment for people with disabilities, rural dwellers and workers.

Fourthly, we have economic stimulation interventions which facilitate increased market access, particularly into Africa; scoping and dimensioning; large industrial projects for the purpose of recruiting investment; and setting up the capacity to maximise the finance, donor funds, incentives and grants available to our provincial businesses. We will assist provincial businesses to land provincial, national and international contracts to supply goods and services. We will play an active role in optimising all public spending in the province to achieve maximum bang for the public buck. Fifthly, of course, we have regional development initiatives. We will have to focus our work in such a way that we contribute significantly to the Integrated Sustainable Rural Development Programme, the Urban Renewal Programme and the Presidential nodes. Those would be, broadly, some of what will inform the microeconomic strategy. Then, once the partners have agreed on the appropriate interventions, we will scope and dimension these and play a key role in getting as many social partners as possible to contribute towards the resources needed to translate these into action.

Besides these, there are several ongoing major interventions which we will continue to drive. For example, in the BPO and call centre areas we are planning a major international investment promotion drive. We believe that there is a unique opportunity to secure up to 20 000 jobs in this sector over the next five years. Thus far in the last two years we’ve been able to secure 7 000 jobs. We have entered into a partnership with the DTI, the rooibos tea industry and some of the best patent lawyers you can find in the land to ensure that we get back the name ``rooibos’’ from the company that has copyrighted it in the United States of America. The DTI has established an oil and gas service hub strategy task team, which is working closely with our own Cape Oil and Gas initiative. Together we are targeting a significant share of the African West Coast oil and gas service and supply business. We are confident that we will soon be on a path towards significant investment in the rig building and repair business.

Rapid progress is being made with the R450 million film studio project, which is anticipated to come on line in 2006. We are driving a process that will lead to the completion of a feasibility study for a passenger liner terminal in Cape Town. We are rolling out a provincial version of the Advanced Manufacturing Technology Strategy, which we hope to complete within this year.

In the SMME and black economic empowerment arena, we are rolling out a strategy called RED, which stands for Real Enterprise Development, and this will entail a single entry point for those who seek to establish enterprises or are seeking help with developing existing enterprises. At full operation there will be an office in every municipality. We have also set ourselves the target of raising and maintaining a R50 million business development fund to deal with the serious problems related to access to finance and support for those who fall outside the financial eligibility criteria set by the banks.

Hon Chairperson, the Western Cape supports the Budget Vote and looks forward to working with the Minister during his term of office. Thank you. [Applause.]

Mrs M P THEMBA: Thank you, Chairperson, hon Minister, hon Minister in the Presidency, hon MECs, hon special delegates and hon members. I don’t want to waste time on the hon Tereblanche because I see that she is still too young to deal with. During the apartheid regime she and her family, brothers and sisters benefited from job reservation. I just want to direct her to read the document called “Fast Facts”. From there she will understand what BEE focuses on.

This budget will provide us with an opportunity to reflect on the progress that has been made during the first decade of freedom in addressing one of the cruellest apartheid legacies. I am referring to the exclusion of women playing any meaningful role in the economy under apartheid. I assume that the DTI’s advertisements, both in the printed and electronic media on the opportunities which the department offers our people to start their own businesses, is taken seriously. In reflecting on the progress, I think it is appropriate to recognise the important contribution which the department of Trade and Industry has made through its Gender and Women Empowerment Unit in helping women to realise and unlock their business potential. This unit has played a critical role in terms of the implementation, co-ordination and monitoring of initiatives aimed at empowering the South African economy. The first decade of freedom has been about identifying the barriers to economic empowerment and entrepreneurship faced by women. It has largely been about creating a legislative and policy framework, within which we can address institutionalised gender inequalities in the economy. These inequalities have resulted in women predominating in the low-skilled and low-paid occupations, where they were generally paid less than their male counterparts.

Underpinning the broad policy framework for empowering our economy is the BEE strategy. The BEE Act seeks to provide support, particularly for women- owned enterprises to access finance, increase the number of women who own and manage existing and new enterprises, and increase their access to infrastructure and skills training. In line with the BEE Act, several transformation charters have been promulgated while others are in the pipeline. One of the key objectives of the transformation charters is to kick-start gender transformation in the South African economy. The Financial Services Charter, for example, envisages that by 2010 women’s representation at executive level in the financial services sector should stand at 4%, while at middle and junior levels, the figures should be 10% and 15% respectively.

In the marketing and advertising charter, 51% of the industry should be in the hands of females by 2006. As women we must ensure that these percentages do not become mere wish lists, but that companies are actually monitored and kept to their promises. These targets have become particularly significant in the light of the results of a recent study commissioned by the Business Women’s Association, and sponsored by Nedbank, measuring the status of women in co-operative leadership. The study shows that while women make up 52% of the adult population in South Africa, they make up only 41% o the working population and constitute only 14,7% of all executive managers.

With regard to the issue of directorship positions, of the 3 125 positions only 221 are held by women. Only 11 women hold chair or board positions out a total of 364; and there are only 7 female CEOs and MDs in comparison to 357 men in the same positions. According to the Business Women’s Association, this is simply not good enough. The study recognises the fact that government has set bench-marks with the strong appointment of women in government and across the public sector, but the private sector is not following the example set by government. There are many constraints that keep women out of business. The critical areas that will have to be given attention, if we are indeed to achieve this targets and move women from the periphery into the mainstream of the economy, are to provide them with the necessary information, skills, technology and networks to share their skills.

Our ANC government’s response to these constraints was to entrench the principle of equality, namely, that all citizens are equal irrespective of race or sex within our economic discourse. This principle has found expression through the various programmes which the DTI has implemented. Hon Chair, allow me to give a few examples. Together with the private sector, the South African Women Entrepreneurs Network was established to advocate for the improvement of the regulatory environment for women in business. SAWEN is represented in all nine provinces, but it’s up to us as public representatives to take it through to the rural parts of our provinces.

The DTI supports the programme called Technology for Women in Business, which is aimed at encouraging women to access and use technology in order to increase the strength of their business. The success of the programme can easily be gauged by its growth into several sectors, namely, minerals and energy, IT and ICT, agriculture, arts, culture, science and technology. Apart from supporting women through technology, the DTI has also been involved in increasing the quality and quantity of appropriately skilled people. Through the Technology and Human Resources for Industry Programme, female students were identified as the special target group.

In 2001, of the 2 394 students who received support, 887 were black of which 713 were female. Rural black women have not been left behind, having been on the agenda of the DTI’s women empowerment initiative. Through the Khula Start Programme, a project of Khula Enterprise Finance, 87% of the black enterprises that received support through micro credits were women. The sentiments of our BEE strategy is about widening the scope of empowerment by spreading ownership among smaller players, providing another opportunity for empowering women. The fact that the BEE strategy is part of the broader economic growth strategy, automatically widens the scope for women’s involvement in the broader South African economy.

I have no doubt in my mind that the increase in the fortunes of women was brought about to a great extent by the enabling environment created by the DTI through its various women empowerment programmes. I cannot, therefore, emphasise in stronger terms our support as the ANC for the Budget Vote submitted by the DTI. I thank you [Applause.]

The MINISTER OF TRADE AND INDUSTRY: Thank you very much, Chairperson, and to the members who have participated in the debate. I think one thing that is clear from the debate that we’ve just had today is that a critical issue or aspect of the work that we must do as we go forward and try to address the major challenges that we still have in our society is to co-operate, collaborate and co-ordinate more.

I think that if we were listening to MEC Brown, when she was telling us about the Western Cape and what they are doing, it was very clear from the account that she was giving that a lot of things that are happening or are in the pipeline are happening in the partnership and in collaboration with the DTI and with national, provincial and local governments. So I would want to highlight that issue as one critical aspect of the work that we are going to have to focus on.

If we were to look at a project such as Coega in the Eastern Cape, for instance, we have Coega today because there has been that collaboration between the different spheres of government and a whole number of other players. You have Eskom there, the National Ports Authority, and so on. So this is an important aspect to consider, as we seek to address these challenges.

To hon Malakoane, I apologise that I didn’t acknowledge you at the beginning. I just want to say that on the issue of exchange controls, we have actually been quite generous in lifting them particularly for investments that are aimed at the African continent. Every time we actually made adjustments to the limits in the exchange controls, we always made sure that limits for people who want to take money out for investment in the African continent were actually higher than for people who wanted to go and invest in other places.

I think that there are indications that there is an increase in the number of South African corporates that want to invest. I think those are the things that the Treasury will look at, to see whether there is a need for any adjustments. An important issue as well in that particular regard is that as South Africans we are seeing a lot of our companies going into a number of African countries. When you do travel, actually, you are really amazed at the extent to which South African companies have gained entry into the African environment.

We must be concerned as South Africans that as they go out there, the business practices of those companies are such that they promote economic development and also enhance the human conditions in those countries. Of course, in the early period, we did have some negative experiences where the arrival of Shoprite, or something like that, meant that people who were producing vegetables, fruit and other things locally, suddenly were shut out because Shoprite was sourcing everything from South Africa. But that is something that has begun to change.

I was at the World Economic Forum and I listened to very good accounts from Tanzania and Zambia about how that situation has changed with Shoprite, for instance, agreeing to source 50% of what they put in their vegetable and fruit stores from local producers. That is something which we, as South Africans, must obviously be interested in. But those are things that are really starting to change for the better.

Hon Terblanche, I’m not going to say that you are too young for me to talk to you, like the hon member there did. But I think it’s important actually to make the point that our policy as the ANC or as the Government is broad- based black economic Empowerment. When I listened to you I didn’t get the impression that you are opposed to black economic empowerment, per se, but that you are opposed to it when it is confined to a few. We have to make our policy very clear, both from the point of view of the number of people that we have to empower and the approaches to empowerment. Our own empowerment is not only about ensuring that people can buy shares in existing companies, or even necessarily establish their own businesses, but it is about human resources development. That is an important aspect of empowerment.

I want to make the point firmly - the fact that you have seen high-profile deals that involve a few people and so on, is probably more reflective of the culture in South African financial institutions they are very risk- averse towards the small people because, whilst they are willing to come in on some of these big deals, they are not so willing to come in where the small person is concerned. That is something that has to change.

In the deliberations that we had on the Financial Sector Charter, one of the issues that I raised with the task team was that for too long our financial institutions have not been able to deal with some of the soft issues, the cultural issues, so that I can walk into a financial institution ke boa Tshivenda [speak Tshivenda] and find somebody there who speaks Tshivenda and who will understand my needs when I explain my circumstances. We must teach our institutions to spend more time with people who approach them, wanting a service of one kind or another. We must teach them that the more time you spend, the better you understand the circumstances of this person and the better you can tell whether that person has the capacity to service a loan, if that is a loan that you are extending.

In the Northern Cape, to take the point that was raised, by hon Sinclair if I’m not mistaken I think that again, this is an issue about co-operation and collaboration between ourselves at national, provincial and local government, and with players. There are things that are in the pipeline already, as far as the Northern Cape is concerned because there are iron ore deposits there. So there is work that the DTI is doing to help develop the iron-ore fields in the Northern Cape. There is also work that is going on between the Eastern Cape and the Northern Cape to develop that rail link because you are going to have Coega now. And for the Northern Cape that is an opportunity to utilise the port in order to transport and receive goods. Also in that direction, there is work that is going on. There is work that is going on other areas as well. Agri-processing is one of them. Indeed, the Northern Cape has not been forgotten.

To the hon Chen, we are not going to follow the route of EPZs. This is not because we just don’t want to, but because an important forum in South Africa that brings together Government, business and labour dealt with this matter. It debated this issue and looked at these options and the option of EPZs was found to be unsuitable for South Africa. Hence the route that is being pursued is the one of industrial development zones. Since then there has been vigorous movement in the direction of establishing those industrial development zones. Three have been proclaimed so far.

So clearly, we cannot ignore the outcomes of a forum like that. If you want to take us in a different direction, you would have to say to that forum that this is what you have overlooked. It is not a preferred option to go the route of export processing zones, because you said yourself that South Africa is a country with very particular features. Precisely because of those features the route of EPZs was not seen to be suitable for South Africa.

As far as the Eastern Cape is concerned, the point made by the hon Masaulle about industrial diversification is an important one and is in line with one of the things that is going to be enjoying a lot of focus and intensive work that is going to be done there.

As far as sectors are concerned, we are going to be focusing a lot on what we regard as sectors with a lot of potential to create jobs, enhance our capacity to export and so on. So it is an important point that you raised. Indeed, we are very committed to ensuring that the process in Coega goes ahead. We are taking note of what the Minister of Transport said this morning, but we are also committed to ensuring that, that smelter is going to be there. There is a lot a work that is going on at this very moment, which is aimed at ensuring that we can finalise the discussions on getting the process of establishing a smelter there going.

Hon Raju, I just want to thank you for the support you have given us in terms of the global trade agenda, because this is something that we are very much committed to; not just in our interests as South Africa, but in the interests of the developing world. We are very committed to that process and we are going there not to advance very narrow and specific South African interests, but really to advance the interests of the developing world. Because our approach to dealing with the problems of poverty and unemployment is that you must create opportunities for people to work and not get people used to hand-outs - donor aid and all of that - the one thing that can release the potential of our people to do things for themselves is to actually open up the opportunities, market access, so that people can engage in economic activities that enable them to participate in global trade.

In winding up, I want to say that the things that we have committed to as the Department of Trade and Industry are things that will see us attaining two important objectives. Clearly, the first economy in our country needs to be supported and assisted to grow further. So some of the work that we are going to be doing will indeed assist us to consolidate and grow the first economy. At the same time, some of the things that we are going to be doing are very targeted interventions that are aimed at ensuring that we can address the second economy. The issue is really to ensure that we can begin to open those pathways that are closed in South Africa. If you are a microentrepreneur, you will stay there forever because there are no pathways that enable you to be mobile and move from being a microentrepreneur to being a big businessperson.

Our interventions are really aimed at ensuring that we can unblock those things. That’s why at some stage the situation in South Africa was characterised as two floors without stairs in between. If you are on the first floor, you are there and if you are in the second floor, you are there and there is nothing connecting the two. The commitments that we are making are aimed at ensuring that we can begin to address those issues. Thank you very much, Madam Chair and hon members. [Applause.]

The CHAIRPERSON OF THE NCOP: Order! May I take this opportunity to thank you, hon Minister. This was quite an eye-opener, and you can see from the interest shown by the provinces that we really do want to ensure that we take into consideration the interests of the provinces and the local government up to the national level. We thank you very much and we want to assure you that we will continuously engage your department because we want to see a better South Africa, continent and a better world. With your assistance, we are sure that we are going to get there. That concludes your debate, hon Minister. Thank you very much.

The MINISTER IN THE PRESIDENCY: She is chasing you out.

The CHAIRPERSON OF THE NCOP: Minister Pahad, I’m not chasing him away. We really just appreciate his input. And you are free to stay on, Minister. Hon members, we now come to the subject for discussion, as printed on the Order Paper. I also want to take this opportunity to invite the hon Minister Pahad to address the House, and to inform him that he is one of the Ministers that we are going to engage. Until the end of this year you are going to frequent this House more often, and we will be engaging you.

YOUTH CELEBRATING A DECADE OF FREEDOM AND SEIZING THE OPPORTUNITIES OF DEMOCRACY

                      (Subject for Discussion)

The MINISTER IN THE PRESIDENCY: Thank you very much, Madam Chair, and let me say that it’s always regarded as a pleasure to come to this House, so your invitation will always be well received. Don’t hesitate to invite me!

Madam Chair and hon members, this month we mark the unforgettable day 28 years ago when the youth of this country took to the streets in protest against the unjust apartheid system. Oh, before getting to that I still wanted to welcome the hon Chen at the time of her maiden speech. Take my advice: don’t say too quickly that you’ll answer questions! [Laughter.]

On that day, June 16, 1976, the young people’s protest was met with brutal force by the apartheid government. It was no less than state terrorism aimed at peacefully protesting youths. It employed far more than police batons, birdshot and teargas. The army was deployed and the youth faced Saracens and sharp ammunition which mowed them down by the thousand. This day remains with us as an unforgettable milestone of our struggle for national liberation. It was a pivotal moment in our march to democracy and freedom, and we must ensure that the nation never forgets. It is with these bitter-sweet memories that our youth throughout the month of June - it being Youth Development Month - will be engaged in various activities as they celebrate and reflect on our first decade of democracy. It is a decade which has brought to them greater empowerment and opportunity.

It is therefore important that, as we engage in today’s debate while solemnly saluting the martyrs of the past struggle, we should dedicate ourselves to the new struggle, which is the war against poverty and underdevelopment that bear down so powerfully on our young people.

Yet today our tone can be modestly celebratory because, indeed, we do have so much to be thankful for as a better future unfolds for the youth of this country. Our Government since its inception in 1994 has made steady progress in ensuring that our youth is empowered. This we have done by creating institutions, policies and legislation that aim to create opportunities for the development of the youth.

Allow me to highlight some of the progress that we have achieved in our endeavours as a government working together with the youth to move forward in youth development. We have successfully adopted the national development policy framework for youth, created the National Youth Economic Participation Strategy, implemented the Presidential Jobs Summit resolution to set up the Umsobomvu Youth Fund, registered 64 000 learnerships for young people, and adopted the National Youth Service Policy Framework and its implementation plan, which we should be unfolding very soon.

These are the building blocks of our strategy to change for the better the lives of the youth of this country. What we need now is the same sense of business-like urgency as was shown by the President when he delivered his state of the nation address to Parliament last month. We must put specific price tags and timeframes on our programmes and ensure that they succeed. We must implement them in a practical and measurable way.

It is obvious that one of the most critical challenges we face is the one of youth unemployment, and we’ve just heard from Ms Lynne Brown of the Western Cape that 80% of the unemployed in the Western Cape are youths. That is a staggering figure. There is obviously the question of how we can improve the skills base of our young people, because in many instances you find that there are jobs available, but many of our young people don’t have the skills to get those jobs. The development of a skills base is quite critical.

We need to involve not only young people, but all strata of society in our programmes aimed at empowering and developing the youth. We need the engagement of civil society, community-based organisations, the corporate world, faith-based organisations, the professions, academia and all other interest groups to reach the goal. We have put in place funds such as the Umsobomvu Youth Fund and National Skills Development Fund in the belief that our young people will take advantage of these opportunities and use them for their future development.

We are all very well aware of the challenges facing the youth; challenges such as poverty, underdevelopment, communicable diseases including HIV/Aids, drug abuse and crime. These are very different compared to the bullets of Soweto in 1976, but massive challenges nevertheless. The problems are a daily reality for many of our young people and there is evidence that awareness of the dangers and a need for lifestyle discipline and adjustment are growing among our youth. It is our responsibility to assist young people as they fight to overcome these obstacles. We need to shift away from pointing fingers at the youth and begin to engage with them as they collaborate in seeking solutions to these problems. Our communities must give sustained support to programmes aimed at tackling these issues so that our youth can realise that the adult community cares about their wellbeing and is also prepared to help them realise their dreams.

I have given a brief picture of where we are as a nation in terms of youth issues. The youth by definition is attractive, active and impressive, but the picture of the youth in our country is not without blemish or challenge. It is up to our society to deal with the things that bear down so adversely on them. It is up to our society to offer them the real prospect of active and involved citizenship as they grow older. The building blocks laid so far suggest that there is hope that we can work together to create a South Africa that is alive with possibilities, a South Africa that really offers a better life for all.

If I may, I’d like to suggest, as part of the work that the NCOP has to do and part of its work in terms of monitoring and evaluating the implementation of Government policies, but very specifically with regard to the provinces, that when we do this we should do it in the context of what I call youth development. There are many things that are going on in the Government - you heard the Minister of Trade and Industry, for example, too

• but they reside in different parts of the Government, in different departments. What we need to do when we look at youth development is we should see how we can take a more comprehensive look at this to then be able to make assessments to judge to what extent we are actually coming up to scratch in terms of our own policies, and our own commitments with respect to youth development as a whole.

I think it would be very helpful when members of the NCOP do go out into the provinces and do their work, and go out into their constituencies that they pay some special attention to this question of youth development, both at local government as well as provincial government level, so that, acting together, we can ensure - or we should certainly try to ensure - that we implement our own policies and our own commitments to youth development. I think this is the best message that we can send out to the youth of South Africa on June 16. Thank you very much.

Mr M C GOEIEMAN: Chairperson, hon Minister, hon members, distinguished guests and comrades, it is fitting on the occasion of a debate of this nature that one begins by quoting from the fountain of wisdom. I now quote the late President of the ANC, Comrade Oliver Reginald Tambo when he spoke at the ANC’s 75th anniversary in 1987:

Our glorious youth and students have continued to hold high the banner of struggle, because they have dared to fight for and bring our emancipation so near. Our youth have been eminent targets of the enemy forces of oppression.

This was of course consistent with the agenda of the apartheid regime to make black people the providers of cheap labour. The black youth were regarded as a source of this unskilled, cheap labour; part of a super- exploited proletariat. By the eighties the apartheid system had so battered the youth that they lacked the very basic means to thrive in a socioeconomic system. This led some commentators to make the allegation that the youth were a lost generation, because they lacked education and skills and did not have access to economic opportunities. Indeed, this is exactly what both the survey of the Community Agency for Social Enquiry and the 1996 census found to be the case as far as black youth were concerned.

In commemorating the 28 years since the youth uprising in Soweto, in the year of freedom, 25 years since Solomon Mahlangu was hanged, almost two months after the ANC has been affirmed to power for the third term of unfettered majority rule, we must bear in mind that this has been brought about by the struggles and sacrifices of the South African youth, while we celebrate this freedom. Celebrating Youth Day should remind us of our fallen heroes and heroines and that it is also about celebrating South African freedom.

This year we are saying that young people should seize opportunities of democracy, and our struggle should also be about the deepening of democracy and unity in diversity of our South African society. Our activities should also highlight the unveiling of a concrete plan on how the National Youth Commission will ensure the massive roll-out of the National Youth Service Programme to urgently address the economic marginalisation of the youth.

Today the challenges faced by the youth are enormous and differ sharply from those that faced the generations before and after 1976. Today the South African youth has a Government that is committed comprehensively to fulfilling its needs. However, this does not mean that the problems confronting young people have been resolved. Mammoth challenges still lie ahead, but immense opportunities have been created for the youth to take advantage of and advance themselves. These opportunities of today have radically altered the environment in which our young and youth are growing up. The challenges for them are to recognise that the South Africa of today requires that we, the current generation of youth, be different from all the generations before us in terms of our values, materials and behavioural culture.

The unprecedented events in Soweto, and other parts of South Africa, became significant milestones in the development of the liberation struggle. They coincided with monumental events in Southern Africa, among others, the winning of freedom in Mozambique, Angola and the imminent victory of the struggle of Zimbabwe. This gave hope to our people that our victory was indeed imminent. All of us must therefore dip our banners in salute to all the martyrs and patriots who perished in the titanic battle and pledge to remain loyal to their example and steadfast in the execution of their command to pursue the imminent and total emancipation of our people.

The youth of South Africa has realised that the fundamental struggle, structural changes and distortions in the economy created by apartheid policies significantly affected its ability to grow and create a productive employment. Hence, all the youth support initiatives of the ANC-led Government by availing its services to youth in offering guidance about all the state development projects that can stimulate the development of small businesses; thus encouraging the youth to be self-employers and job creators by using state institutions such as the Umsobomvu fund, the Industrial Development Corporation and the Land Bank and by exploring the possibilities of creating a youth bank, credit union and food bank to lend financial, material and advisory support to the youth in the development of their enterprises. Youth further affirmed the institution of the National Youth Service Programme as a way of engaging the youth in realising the development imperatives of our country.

Contrary to the narrow, sectarian view of some amongst us who find it fashionable to hasten to call for the dissolution of the National Youth Commission, as represented … [Interjections.]

The CHAIRPERSON OF THE NCOP: Hon member, please apologise for disturbing the hon member. [Laughter.] Hon members, please don’t scare Mr Goeieman. He is a young person, and he is talking on behalf of the young people of this country.

Mr M C GOEIEMAN: Chair, contrary to the narrow, sectarian view of some amongst us who find it fashionable to hasten to call for the dissolution of the National Youth Commission, it represents the resentment of our youth against the fight-back strategy. Our youth want participation and co- operation in solving the problems of this country, as well as their own plight, not some fight-back strategy which is reminiscent of a small faction of our society.

We must advocate the establishment of agricultural corporate villages and banks. We must further advocate for youth brigades on various aspects of rural development to be deployed to the poorest rural areas.

It is also of utmost importance that we should strive to facilitate youth employment through income-generating activities such as infrastructure development projects, creating services and other initiatives that reorientate youth away from job seeking towards wealth creation. And lastly, we should advocate for skills development on strategic economic and management areas.

In conclusion, a great challenge lies ahead and awaits the generation of youth in the ANC-led Government today to mobilise, organise and educate our youth to become masters of their own destiny. We must strive to become the repository of the best youth in society and be the catalyst of the community and particularly youth development. A great decade lies ahead of us to continue to champion the all-round political and socioeconomic aspirations of the youth.

It is critical also to intensify the global work on poverty for peace and Africa’s development. This also means that we must “nepadise” the South African youth and force personal, political and economic changes, interactions and co-operation between South African youth and youth in other parts of the continent. We must seize these opportunities of democracy, because history has charged us with the obligation to become masters of our destiny. I thank you. [Applause.]

Ms D ROBINSON: Hon Chairperson, hon Minister and members, as a former teacher young people and their future are very close to my heart. South Africa has made progress since those dark days of oppression under the apartheid regime of the NP where little attention was paid to human rights, except for that of the chosen few, and where education for the majority was of an inferior standard in order to suppress the next generation. [Interjections.]

An HON MEMBER: You were one of them.

Ms D ROBINSON: I was not. [Interjections.] There is no greater gift for children than knowledge - giving them the opportunity to read widely and finding their place in society. Libraries are the storehouse of knowledge and our youth needs greater access - not less. We must seize the opportunity to improve their lot in order to assist them to become entrepreneurs and grow our economy. We need a society of literate and numerate citizens who can compete with the rest of the world and lead Africa to peace and prosperity.

For centuries libraries have provided access to a range and depth of information and knowledge that we as individuals cannot afford. As places of learning libraries perform vital functions in a caring society. Outcomes- based education cannot succeed without libraries. Libraries are an essential back-up for schools, since most school don’t have their own libraries. They give families who don’t have resources access to books and Internet facilities. [Interjections.] They provide basic adult education and literacy classes. They have business corners for potential entrepreneurs. For those living in over-crowded conditions, the library is a quiet and safe place to study.

Many of our libraries are in a sad state. Instead of being a treasure trove of knowledge, which is accessible to all, they are becoming unstaffed storerooms. More librarians are needed, but they are not being replaced. Fewer books are being purchased because of cuts in staff. Opening times are being reduced. Students are being denied access, especially at night and on Saturday afternoons.

In the Sunday Times of 4 April, Professor Seth Manaka said that fewer than 40% of the population has access to libraries in urban areas and less than 15% in rural areas - a sad indictment of our society. In 1994, provincial governments were given the financial responsibility for libraries, but they were given no extra budget; so, municipalities that provided the service became the victims of unfunded mandates, hence the cutbacks. Municipalities looked to the provincial and national Government for funding with little result and much finger pointing. Task teams set up to investigate have reached no conclusions. This fiasco must be resolved urgently. I appeal to you, Minister: National Government cannot simply assign responsibility without providing the funding.

Access to information is a right in the Constitution. Because the majority of people do not have access to libraries, they are denied this right. We have radio stations collecting books and promoting “Zifundela. Read for yourself”, but the Government of the day does little to help. [Interjections.] [Laughter.]

There has been a decline of 43% in the publication of books in African languages - a tragedy for a developing country. What better way to celebrate Youth Day than by giving us funding for freedom libraries, for improving staffing and services. [Interjections.] Libraries provide food for their minds. Let us nurture a culture of learning and reading - an on- going celebration of our decade of freedom - enriching and empowering our nation for the future. [Interjections.]

And for your information, I have started so many Friends of the Library associations where we are providing the funding. I appeal to you; let us look at this. [Interjections.] I investigated that one personally. [Interjections.] I was part of the situation when we put in the computer system, which came with those libraries.

The CHAIRPERSON OF THE NCOP: Order! Hon member Robinson, can you listen? You have to speak through the Chair and not talk directly to the Setswana lady. Your time has expired.

Ms D ROBINSON: Madam Chair, I apologise, but this lady is making it very difficult. I apologise. [Laughter.]

Mr K SINCLAIR: Hon Chairperson, in my preparation I prepared a very moderate speech to contribute to this debate today, but after I thought about the political situation in South Africa, I had second thoughts about my contribution today. I am going to tear up the speech that I prepared. I am going to speak about the political scene in South Africa and the role that the DA is playing in this whole process. [Laughter.] [Applause.]

The CHAIRPERSON OF THE NCOP: Order!

Mr K SINCLAIR: Chairperson, I will do that in terms of the topic that we are going to discuss - the broader democratic framework.

My colleague Mr Goeieman - I will not say ``Comrade Goeieman’’ because I’m not a comrade gave his maiden speech today. There are many “goeie manne” [good men] in the DA.

Daar is baie goeie mense in die DA. [There are many good people in the DA.]

But the problem with the DA is that they are misleading our people. [Interjections.] They are misleading our people in terms of of what they pretend to do. During the last election the youth of this country, inter alia, alternative government. [Interjections.] The DA pretends to be the party for very clever people. And sometimes they …

The CHAIRPERSON OF THE NCOP: Order! Hon members, order!

Mr K SINCLAIR: Sometimes they are very clever - they think so. [Laughter.] But the problem is that they are politically stupid. [Laughter.] [Applause.] Yes, politically they are very stupid. My Grade 1 teacher told me long ago that there is a difference between equal'', bigger than’’ and ``smaller than’’. The DA got 12% support. [Interjections.] And the ANC got close to 70%. [Interjections.] And now they pretend to be an alternative government. [Laughter.] But, furthermore, they dish this up to the youth of this country and they want them to believe it. [Laughter.] But a very interesting thing …

The CHAIRPERSON OF THE NCOP: Can you hold on, Mr Sinclair? Hon members, you are making it difficult for us to hear what the member is saying. Can we give the hon member a chance, because you had your opportunity to say your say. Can we also give him a chance to say what he wants to say without any interference? Continue, Mr Sinclair.

Mr K SINCLAIR: Thank you, hon Chairperson. Maybe the truth hurts. [Laughter.] But a very different and interesting thing happened the other day when somebody from the DA said: “Where’s the New NP?” The comrade over there … the colleague over there … I want to tell him where the NNP is. [Interjections.] The New NP is on its way to being part of this country and trying to resolve the issues, including the issues of the youth. [Applause.] We are there.

But the reality is, people, and they are very good people - “Hulle is goeie manne” [They are good men] - like my colleague at the back who was part of the old NP and is now heart and soul in the DA … [Laughter.] Yes, he’s there - heart and soul in the DA, and he is enjoying it there. But the colleague over there was lured into the DA with very beautiful promises. [Laughter.] However, the party that he is representing is still writing their manifestoes in Houghton, and they do not care about the youth and the challenges of our time.

What are those challenges? Those challenges are creating work, addressing unemployment, and the issue of HIV/Aids, and that is why the NNP took a principled decision to support the ANC in its endeavours. [Applause.]

The last issue I want to raise is that the other day the DA made a hullabaloo about the NNP accepting the Freedom Charter of the ANC. Today in this House I want to challenge the DA and the ID to tell us where they stand regarding the youth and regarding the principle of accepting the Freedom Charter as a policy for this country. Where do they stand? I thank you. [Interjections.] [Applause.]

Mrs A N D QIKANI: Madam Chair, hon Ministers, hon members, tomorrow we will be celebrating the courage of the youth of 1976. The title of this debate implies that we expect today’s youth to seize the opportunities of freedom and democracy. And while we have these expectations of today’s youth, we would do well to remember what the actual motivation was behind the events of that fateful day in 1976.

I am speaking of the issue of education. Back then, the youth made an emphatic statement about the poor education that the apartheid regime was giving them. They recognised that deliberately insufficient education would condemn them to perpetual cheap labour and political subjugation, and they said no. It is therefore necessary for us to acknowledge that their blood was spilt for a freedom intricately linked to education.

Hundreds of thousands of our youth matriculate and graduate every year, but a majority fail to find proper employment. If we want the youth to embrace the opportunities of democracy, we must empower them with the education to exercise that voice. We need to spend even more on education. We need to provide our children with skills, not only to find employment, but also to create employment as entrepreneurs.

We need to recognise that teaching is more than a profession. It is a calling that deserves a better salary. We need to ensure that every school actually does have classrooms, water, sanitation, electricity, libraries and sport facilities. In that sense we say that … abantwana bethu kuneka sibajonge kakhulu and kufuneka sibalandelisile and kufuneka siyazi into ukuba thina bazali apha simele abantwana bethu. Enkosi Mamusihlalo. [Kwaqhwatywa.] [… we need to take care of our children, we need to give them attention and be aware that we as parents are representatives of our children here. Thank you, Madam Chairperson. [Applause.]]

Ms E S MABE: Madam Chairperson, Hon Minister, hon members, ladies and gentlemen, I am both honoured and delighted to be able to deliver a speech on such an important commemoration as that of 16 June. It is a day that constitutes one of the defining moments in our history. And being able to do this in the NCOP, which is at the centre of co-operative governance around important issues such as youth development, makes it even more fulfilling.

Our president, Thabo Mbeki, is correct when he says:

Our youth is growing up in an exciting period of the rebirth of both our society and continent. It is growing up in a situation in which the battle is joined to build a world that is truly focused on changing the lives of the ordinary people.

The ANC is leading this battle to improve the quality of life of young people in South Africa, through our comprehensive people-centred and people- driven programme of social transformation. Our organisation is also taking the lead in creating awareness on the continent of the need to integrate issues within the broader development framework for the rebirth of our continent.

The ANC has embarked on the comprehensive programme of fundamental transformation that seeks to construct a prosperous society in which the young people have unlimited opportunities to pursue their dreams. This process of transformation touches upon every single aspect of society that impacts on the youth, such as education, health and employment.

Our first decade of democracy is providing many new opportunities for our youth to enhance their knowledge and skills, therefore a series of laws and programmes have been implemented since 1994 to address the legacy of apartheid, which saw limited access to education, training, employment opportunities, health and recreation, amongst other things for our youth.

In the field of education, the ANC has implemented the National Norms and Standards for School Funding, which established principles for redressing past imbalances in the financing of schools. In the area of social development, the ANC made health care free for pregnant woman and children under six years, introduced the school feeding scheme to help improve the nutrition and general health of primary school students, while improving their capacity to learn; and expanded the child support grant to reach and benefit many more millions of children. It introduced comprehensive child care legislation in Parliament to further promote and strengthen the rights of children and to protect them from abuse. It also provided water, electricity and basic services to millions of households, thus freeing millions of the youth, especially rural young women, from the burden of disease and stunted growth.

We have established a National Youth Commission to champion youth development at the level of policy formulation, among other things, interacting with Government departments in the legislative process to ensure a youth bias. We have implemented initiatives like the National Youth Service to respond rapidly to youth unemployment, which is part of the result of a lack of skills development. The youth involved in the programme will gain working experience, which will increase their employability.

The Government has also implemented a National Skills Development Strategy to improve the skills levels of our country’s labour force, particularly the youth, to enhance their employability. We have also set up the Umsobomvu Youth Fund to assist in the creation of youth entrepreneurships. It is unfortunate that I have to torture you with our long list of achievements, but I am doing this for the benefit of those South Africans in the opposition benches who seem to be unaware of the massive progress that has been made in terms of the youth development in this country.

The ANC has entered into a contract with the youth of our country. We must celebrate National Youth Day and use it as a platform to strengthen our People’s Contract towards an integrated and sustainable youth development programme. While the defining characteristic of the previous decade was the attainment and consolidation of freedom and democracy in our country, this decade should be dedicated to accelerating the translation of the youth development policies and programmes into concrete outcomes. Our success in this regard will rely heavily on our ability to effectively integrate and co-ordinate our various youth development policies across the three spheres of Government.

Our Constitution enjoying the different spheres of Government to co- ordinate their actions with one another. This includes actions around the implementation of youth development programmes. National, provincial and local government each has a specific role to play in terms of the youth. While national Government is responsible for formulating national policy on youth development, provinces and local government have to implement the National Youth Policy within a context unique to each province and municipality.

The NCOP, being at the centre of co-operative governance, is uniquely placed to ensure that this integration and co-ordination across the various spheres of government does indeed happen. This institution will therefore play a crucial role during this decade of freedom in ensuring that we reach our youth development objectives. I thank you. [Applause].

Mr N M RAJU: Hon Chair, hon Minister, hon colleagues, no more the dark and frightening clouds of apartheid and the regime’s sinister forces of racial discrimination and oppression; and no more the foisting of the language of apartheid on a captive generation of black youth. No more living in drab racial ghettos with their attendant lack of recreational amenities, such as libraries. A decade and more ago, life for South Africans who were not white was miserable in many ways, to say the least. The assault on one’s dignity and even on one’s person, if you were not white, was unremitting. Our children, our elders and especially our youth were the victims of the most pernicious form of inhumanity to man and woman.

Apartheid was an evil philosophy. The tragedy was that the practitioners were not aliens from outer space, but ordinary men and women, fellow South Africans. The denial, deprivation, desperation and dispossession that characterised apartheid, are today things of the unforgotten past.

Today we rejoice in the decade-old sun of democracy that broke through those clouds of despair, thanks in no small measure to the students of Soweto. Today our youth evince a new sense of joy and bounce with energy to live and let live. They have welcomed the warm embrace of the culture of human rights, tolerance, and a plethora of human freedoms. They have discarded the suffocating tentacles of prejudice, discrimination, and denial of human rights. Our young people are displaying a welcome generosity of spirit and a willingness to comprehend all that is good for human coexistence.

We have a host of young stars in the firmament of sport, art, theatre and literature. Allow me just to name a few: Mark Shuttleworth, not yet 30 years old, became the first South African astronaut in space; Makhaya Ntini, Graham Smith - cricket; Lucas Radebe, Mbulelo Mabizela, Bennie Mc Carthy - football; Hestrie Cloete - high jump; Natalie du Toit - swimming; and Leleti Khumalo of Sarafina fame. Can we forget Ma Brrr Brenda Fassie? She was the very essence of our irrepressible youth. These are but just a few of our geniuses. These icons are proof enough that given access to opportunity and adequate resources, our youth will not disappoint in their endeavours. They will bloom into productive citizens and make South Africa proud.

But alas! There are dark clouds looming ominously on the horizon, threatening to engulf this beautiful nation. HIV/Aids is exacting a terrible toll on the youth of our nation. Like a voracious creature with an insatiable appetite, this pandemic is mowing down thousands of our fellow compatriots, creating thousands of orphans and a myriad of problems for families and society at large. Our youth have a great responsibility in the next decade to ensure that indulgence in sexual activities does not get out of hand, and to learn that good, clean living goes hand-in-hand with any sexual relationship.

I pay tribute to the youth of the past decade who were in the transformation stage, and now they are up and running towards the 2010 World Cup, and everything else that goes with youthful endeavours. I thank you. [Applause.]

Mr M THETJENG: Ke a leboga Modulasetulo. Tšhireletšo yeo o e filego bao ba fetilego ke tshepa gore le nna ke tla efiwa. Modulasetulo le bahlomphegi ka mo ntlong ye yarena ye, polelo e re mahlaku a maswa a ema ka a matala. Tokologo ya Afrika Borwa ga ya tla ga bonolo eupša ka boikgafo bja mantho, banna le basadi, ka kakaretšo.

Nkgenkge e ile ya ja nkgawane ka 16 June 1976, mo baswa bao ba bego ba ipelaetša kgahlanong le tšhomišo ya se Afrikaans bjalo ka leleme la semmušo diphapošing tša thuto le melawanalawana ye mengwe ya kgethollo, ba ile ba keketwa bjalo ka molemi, wa go hloka pelo hlomogi a keketa dipokolo tšeo di mo lemelago. Ba bangwe ba ile ba lahlegelwa ke maphelo go swana le bo Hector Petersen, bangwe ba lahlelwa dikgolegelong mola ba mahlatse ba ile ba tšhabela dinageng mabapi le tša kgole.

Balaodi ba Pušo ba nako yeo le nankhono ba sa phela le ge e le gore ba bakwa le badimo. Ngaka makgona tšohle e ka re e tla ba gona go ba imolla bolwetšing mapalela dingaka. Ba be ba tla be ba fodile, bothata ke gore ba ema ema bjalo ka maru ao a ratago go neša pula ke batho ba go swana le bo Morena Sinclaire. Go lokollwa ga baswarwa ba dipolotiki ebile seka sa go thoma go laetša gore phenyo e ya kokota. Dikgetho kakaretšo tša di 27 Aporele 1994 e bile mathomo mayo tokologong ya badudi ba Afrika Borwa. Tokologo ya sepolotiki yona MaAfrika Borwa a e swere ka diatla tše pedi, ka ge bjale re e ba le dikgetho tšeo di lokologilego le ge di na le bosodi.

Manyami a magolo ke gore bontšhi bja baswa bo itlhobogile. Dipalopalo di laetša gore bontšhi ga bo šome. Ga go be le peakanyo leswa ya ekonomi gore e tle e kgone go tšweletša dikgoba tša mešomo go baswa ba naga ye. Bontšhi bo bile bo ineetše go dira dikgopelo tša mešomo.

Go tloga go le pepeneneng gore bao ba bunago ba balwa ka menwana ya seatla se tee. Bohwa bja naga ye bo nale baji. Ke bona bao ba nago le dikgolagano tša maemo a godimo dipolotiking. Ke maswabi ka seo.

Bontšhi bo palelwa ke go tšwela pele le dithuto tša bona ka morago ga dithuto tša marema tlou, ka ge batswadi ba palelwa ke mašeleng a go ba romela dithutong tša godimo. Beng me šomo le bona ba palelwa ke go hwetša batho ba maleba mesomong ya bona. Ke ka mo rena baDemocratic Alliance bjalo ka ge le re bona, re tlileng ka leano la ditlankana tša menyetla (opportunity vouchers) tšeo ba ka di šomišago ka mokgwa wo olatelago: go ya dikolong tša godimo ka ge batswadi ba palelwa ke mašeleng, go ithomela dikgwebo tšeo di ba tlišitšego mašeleng le go ithutela mešomo ya matsogo bjalo ka ge re bolet še gore mešomo e gona, ba bangwe ba palelwa ke go tsena ka gare ga mešomo yeo ka baka la go hloka tsebo. Tše di tla tliša lethabo leo le tla dirago gore ba keteke mengwaga ye lesome ya tokologo ba lokologile mo bodiiding.

Baswa emang ka maoto le llele tšeo e lego tša lena mo nageng ya bo lena. Le seke la ngala go yo kgetha ka nako ya dikgetho tšeo di tlago tša bomasepala. Mmušo o bewa ke batho ebile o ntšhwa ke batho ge o sa ba hlokomele. Pušo ke pušo ka batho, diputswa le babaswa. Ke a leboga. (Translation of Sepedi speech follows.)

[Mr M THETJENG: Thank you, Chairperson. I hope I will be given the same protection that was given to the previous speakers. Hon Chairperson and hon members of this House, there is a saying that goes: Young ones learn from their elders. Freedom in South Africa was not easily won, but it was through the sacrifices of many people, men and women in general.

It was tough on 16 June 1976, when the youth demonstrated against Afrikaans as the medium of instruction and other discriminating laws. They were brutally beaten like a ruthless farmer would beat the donkeys that plough his fields. Some of them, like Hector Petersen, lost their lives. Others were thrown in jails, whilst others went into exile.

The leaders of the previous government are still alive today, even though they are about to die. The most experienced doctor will be there to cure them of their incurable diseases. They would have been cured, the problem is that they are so restless, like rain clouds. It is people like the hon Sinclair. The release of political prisoners was a sign that victory was knocking at the door. The general elections of 27 April 1994 marked the beginning of freedom for South African citizens. South Africans have political freedom in their hands, as we now have free elections, even though they are not fair.

The saddest thing is that most of the youth have lost hope. Statistics show that most of them are unemployed. Let there be economic reform so that there will be job creation for the youth of this country. Most of them have given up applying for jobs.

It is obvious that those who benefit are very few. The heritage of this country has its heirs. These are the people who are politically well- connected. I am sorry about that.

Most of them are unable to continue with their studies after matriculating, because their parents cannot afford to send them to institutions of higher learning. Employers cannot find suitable people for the work either. That is why we, the DA, as you can see, came up with this ``opportunity vouchers’’ plan that they can use in the following ways: to go to school, as parents cannot afford it financially; to start their own businesses that will boost them financially; and to learn handicraft skills. As we have already said, there are jobs, but some fail to get the jobs due to a lack of skills. This will bring the kind of happiness that will enable them to celebrate the 10 years of democracy, freed from poverty.

Oh youth, stand up for your rights in your own country. Do not fail to participate in the next municipal elections. The people elect the government and the people also bring it down if it does not deliver. Government is government by the people, young and old. [Thank you.]]

Mr B J TOLO: Before I start with my speech, I want to advise hon Sinclair that when the DA accuses him of having adopted the programme of the ANC, namely the Freedom Charter, it just shows that there is a bankruptcy of understanding in terms of the history of this country in the DA because the Freedom Charter in essence is not the document of the ANC. It is the document that was adopted by the ANC at some stage as a people’s document drawn up by the people of this country, and not the ANC and, therefore, there is nothing wrong with you adopting the programme of the people of South Africa if you want to align yourself with what the people want.

Chairperson, hon Minister and hon colleagues, today South Africa is a country that is the envy of many nations. This is so because in a very short space of time, 10 years, we have achieved what many nations could not achieve in many decades. Today, we are a fully-fledged democratic country that has taken its rightful place among the community of nations. We have a constitution that guarantees human rights and dignity to all. We have an ANC government that ensures that the state resources are used to the advantage of all the people of this country, especially the poor. The foundation on which our country is built is rock solid and that ensures that we can only move from strength to strength to further better the lives of our people. But, to be able to locate these crises of achievements in their proper perspective it is proper to look back where we are coming from. We are doing so in order to identify the role-players, or some of them, who contributed enormously in order for us to be where we are today. We come from a long history, which was characterised by oppression and apartheid. A system, which we all remember, that was meant to perpetually dehumanise the majority of the people of this country.

The people of this country, at the head of whom was the ANC, fought a relentless struggle to end that obnoxious system. At the centre of this struggle, at different times in history, we always had young people. At every turn they always pitched the struggle to a higher note. It is the youth league of the ANC to which Mandela, Sisulu, Lembede and others belonged in the 40s that dynamically transformed the ANC. It is they who catapulted the ANC to a higher level of struggle, which led to the adoption of the 1949 programme of action; a programme which transformed the ANC to a more confrontational method of struggle. Defiance of unjust laws and boycotts were the main tactics adopted to fight the regime then.

After the Rivonia Trial the then regime thought that it had broken the back of the liberation movement. This was the time when there was a relative lull in terms of overt political activities. But for the liberation movement it was time to reorganise as the arrest of many leaders caused some disorganisation. The apartheid regime then thought it was time to tighten the screws of apartheid to make it more thorough and perfect. Among other things, they introduced Afrikaans as the sole medium of instruction in schools. This was to further subdue the people so that the only language they should understand and speak better would be the master’s language.

In the meantime the underground structures of the movement were growing stronger as we had people like Comrade Joe Gqabi in Soweto who was then recently released from jail and working among the youth.

June 16, 1976 will go down in the annals of history as the turning point in the struggle for liberation in this country. It is a day on which the youth of our country said enough is enough. With stones and dustbin lids they confronted the brutal force of the well-oiled apartheid killing machine, the SA Defence Force and the police. The revolt against Afrikaans as a medium of instruction, which started as a small beginning, but engulfed the whole country in no time, was a dress rehearsal for future battles.

Although some of our youth on that day and the subsequent weeks and months had to go through the shadow of death, the running battles ensued. These battles proved that no force, however strong, could defeat a people determined to realize their freedom and that you can win some battles, but not the entire war as the South African situation proved.

Some of the youth during these battles realised that it was impossible to defeat the apartheid regime without a revolutionary theory and arms in hand. Thousands left the country to swell the ranks of the liberation movement, especially MK. After political and military training, some were infiltrated back into the country to confront the regime in pursuance of the armed struggle and defence of the people - a mission they fulfilled with distinction.

It was the youth of this country who, when the then President of the ANC, Oliver Tambo, in the middle 80s made a clarion call that the country must be made ungovernable and apartheid unworkable, redoubled their efforts in embracing the call. It was for this reason that they were dubbed the roaring young lions. We therefore today salute the heroes and heroines of the June 16 detachment and subsequent detachments, including the young lions of the mid 80s and many others, for fighting on the different fronts of the struggle in trying to achieve social justice for our country.

Some of them paid with their lives for us to be where we are today, celebrating a decade of freedom under conditions of peace and stability. We have in mind here heroes like Solomon Mahlangu, Gordon Dikwebu, the Lion of Chiawelo and many others. It is befitting therefore, that the ANC Kabwe Conference in 1985 resolved that June 16 will be known as Youth Day in South Africa in recognition of the invaluable contribution the young people made in the struggle for liberation. It is for the same reason that our Government declared June 16 a public holiday. The youth of this country sacrificed pleasures that young men and women enjoy in any normal society. They sacrificed their education and above all, some sacrificed their dearest possession, which is life. We are therefore saying that the youth of 1976 and the youth of subsequent years identified their historic mission and accomplished it with distinction. Their struggles, and that of other patriots, led to that epoch- making event - the 1994 general elections in our country; the elections that put us on a proper pedestal to transform this country in the interests of all the people.

We must, however, also point out that the youth of today cannot bask in the glory of the youth of 1976 and that of the years that followed. They are not the ones who did what we described above. It is their fathers and mothers who were the youth in those years. Today’s youth must identify its historic mission and realise it, for we are living in a changed situation and therefore the mission has changed. [Time expired.] [Applause.]

Rev E ADOLPH: Thank you hon Chairperson. Chairperson, Mr Minister and members of this Council, I think the youth has reason to celebrate our ten years of democracy tomorrow. It is a well-deserved democracy under the leadership of the ANC-led Government. We have to give them credit for what they did regarding the numerous programmes of development strategies to intervene in the lives of our youth. I am also a child of 1976 and I never realised that the blood of Hector Pietersen and many others would be the symbolic gesture to reconcile South Africans.

Ek was nooit bewus daarvan dat juis die bloed van mense soos Hector Pietersen en Stompie Sepei die grondslag gelê het nie vir `n nuwe demokrasie wat ons deur pyn en leiding daargestel het. Ons het die politieke stryd gewen. [I was never aware that the blood of people like Hector Pietersen and Stompie Sepei laid the foundation for a new democracy, created by us through pain and suffering. We have won the political struggle.]

But we are facing challenges such as a major economic struggle that we need to tackle vigorously. I was quite surprised as a child at the idea that black South Africans could never create anything. Was it perhaps that somewhere in a laboratory Dr Wouter Basson created a virus to destroy our innovative or creative brain cells? Or did it have anything to do with artificial intelligence or the Illuminati? I’m not sure about these things. I’m just asking this question. Today, all of a sudden we have millionaires and billionaires.

Ons het ewe skielik nou loodse wat vlieg; ons ontdek nou dat die swart man en swart vrou kan presteer op alle vlakke van die samelewing, wêreldwyd. Ons kan met genoegdoening trots wees daarop dat ons swartmense oor tien jaar alreeds bewys het dat hulle kan kompeteer met die beste ter wêreld. Miskien het ons soos n afkophoender sonder 'n brein rondgeloop. Dit walg my om daaraan te dink, maar ek wonder somtyds wat in daardie naalde was waarmee ons as kinders ingespuit is. Onthou u nog daardie groot naalde - miskien moet ons onsself vra wat daarin was. Die wil graag vandag `jonkwees’’ herdefinieer. Ek is jonk omdat my gedagtes en denke innoverend is. Ons kan nooit jongmense uitsluit uit die besluitnemingsproses en die politieke arena van ons samelewing nie. Hulle is die boustene en die rigtingwysers. Ons kan nooit verwaand wees en sê ons dink en praat namens jongmense nie.

Daarom is ons in die OD n voorbeeld vir jongmense - ons het die jongste parlementslid vandag, net 27 jaar oud. Hulle het nie n aparte ``youth league’’ nie. Hulle is daar saam met ons as rigtingwysers vir ons jongmense. Ek wil graag `n paar uitdagings stel wanneer ons Jeugdag herdenk. Ek wil graag vir u sê dat ons jongmense word deur MIV/Vigs bedreig

• n geweldige katastrofiese toekoms vir ons. Dan wil ek graag - ek sien Mnr Dugmore, die LUR vir onderwys is hier - vir u en u onderwys departement uitdaag om die tikprobleem aan tes preek; 'n geweldige `snater’’ ding wat sy kop uitsteek. [Tyd Vestreke.] Dankie. (Translation of Afrikaans paragraphs follows.)

[All of a sudden we have pilots flying planes; we now discover that black men and women can achieve at all levels of society worldwide. We can take satisfaction in being proud that our black people have over ten years already approved that they can compete with the best in the world. Maybe we were walking around like a headless chicken without a brain. It disgusts me to think about it, but I sometimes wonder what was in those syringe used to inject us with as children. Do you still remember those big needles? Maybe we should ask ourselves what was in them.

The ID would like to redefine ``being young’’. I am young because my thoughts and opinions are innovative. We can never exclude young people from the decision-making process or the political arena of our society. They are the building blocks and the direction indicators. We can never be so arrogant to say we are speaking on behalf of the youth.

That is why we in the ID are an example to young people - we have the youngest Member of Parliament today, only 27 years old. They do not have a separate youth league. They are there with us as direction indicators for our youth. I would like to set a few challenges when we celebrate Youth Day. I want to tell you that our youth are being threatened by HIV/Aids - an enormously catastrophic future for us. Then I would like - I see Mr Dugmore, the MEC for Education is here - to challenge you and your department of education to address the tik problem; a terrible thing rearing its head. [Time expired.][Thank you.]]

Ms J F TERBLANCHE: Madam Chairperson, the subject for discussion today is: “Youth celebrating a decade of freedom and seizing the opportunities of democracy.” But Youth Day is also the commemoration of a struggle in which many lives were lost - especially on 16 June 1976, in Soweto.

However, I would like to celebrate Youth Day in a different way. Rather than focusing on the heroes of the past - although they must never be forgotten - I want today to celebrate the new heroes of a new struggle: the women, grandmothers and sisters who nurture and provide for the growing number of children in our country who are direct victims of the HIV and Aids pandemic.

The first national HIV prevalence study conducted by the Human Sciences Research Council found that 3,3% of the children who participated were maternal orphans, while 10% had lost a parent by the time they were nine years old. In the age bracket of 15 to 18 years, approximately 25% had lost one parent and 3% of children between the ages of 12 and 18 years were the head of a household. For these children getting Government assistance through grants is very difficult. Children orphaned by Aids will comprise 9% to 12% of South Africa’s three to five million children by 2014. In view of all this, it is shocking to know that the antiretroviral roll-out has been stopped and, as a result …

THE CHAIRPERSON OF THE NCOP: Hon member, can you take your seat, please.

Mr T S RALANE: Chair, on a point of order, can the member focus on the discussion? Thank you very much.

THE CHAIRPERSON OF THE NCOP: Hon member, can you offer the member an opportunity to address the House?

Ms J F TERBLANCHE: Thank you, Chairperson. In view of all of this, it is shocking to know that the antiretroviral roll-out has been stopped and as a result, children who are also part of the youth, as the member would know, are being denied life-saving antiretrovirals. This is a result of the nondelivery of Government and health Minister, Manto Tshabalala-Msimang, despite election promises and the so-called contract with the people.

So for some tomorrow will be a day of celebrating, of reflecting on the past and a struggle that is over. For others, such as the 40 HIV-positive children out of 72 at Amaphelo preprimary school in Potchefstroom, North West, who don’t have access to antiretrovirals, it will be just another day trying to survive the battle against the disease that robs them of their childhood and that has robbed eight of their playmates of their lives over the past year-and-a-half.

Therefore, I celebrate Youth Day remembering those who have died as a result of the pandemic - especially the children - and saluting those who care for and love those children. I thank you.

Mr C DUGMORE (Western Cape): Chairperson, hon Minister Pahad, our members of Parliament, guests, friends and comrades, you know, I am really not sure about the last contribution … [Laughter.] … because the party that she represents is the very party that, in the National Assembly voted against legislation to make medicines in this country much more affordable. And on the basis of those studies this Government is, in a comprehensive way, dealing with HIV/Aids and is beginning to roll out the antiretrovirals.

Waar kom sy daaraan om vir ons te sê dit het nou tot ‘n einde gekom? Waar woon sy? [Where did she hear that, telling us that it has now come to an end. Where does she live?]

Does she live on the moon? [Interjections.] Then, her other colleague, hon member Robinson, also comes here and bemoans the state of our libraries. Earlier on hon Sinclair said that “hierdie DA mislei eintlik die mense.” [This DA is actually misleading the people]. And that is true. They try and give them the impression that they are an alternative government.

Well, let me tell the members of this House that they had the opportunity at some stage to actually govern this province. And you know what they did? When they were in control of the city, they did nothing about the libraries in the city of Cape Town. [Interjections.] It was they who did nothing about libraries in this provincial government. Yet hon member Robinson comes here … and I am going to deal with the youth commission. We are here today to talk about the opportunities.

Do you know that in this province of ours the DA actively opposed the formation of a youth commission in the Western Cape? [Interjections.] They opposed that and yet they have the gall to come into this House and make pious statements about our youth. But, hon Sinclair, when they actually had the chance to govern they refused to allow a youth commission in the Western Cape. I actually want to bring to the members’ attention, in this House, a statement by someone who has now been promoted by the DA from the legislature to the National Assembly and is now the spokesperson of the DA. This is what she thinks of women - mainly young women and black women in Parliament, and I want to quote from Hansard. Hon Helen Zille, who is now the official spokesperson of the DA, said:

I have been in some of the portfolio committees and I can see what a drain token representatives are on the public purse. Which women are there because they add real value and which are there to fill the ANC quotas?

Now this is in the context where we have all seen the value that women in this House add everyday, and we have seen it again today. Then she said, and this is a direct quote:

They take up space there, earn a salary, eat a big lunch, pack in some ``padkos’’ and drive off in a C-class Mercedes-Benz.

I want to challenge these women from the DA here: be braver. This is about women and it’s about our youth. I want to challenge these women to do something that Tony Leon has not been prepared to do - sorry, comrade. [Laughter.] This is something which makes me angry. I want to challenge these two hon members, Robinson and Terblanche, to do something that Tony Leon has not done up until now, and that is to distance himself from hon member Zille’s statements.

Het hulle die moed om dit te doen of gaan hulle net sê, Nee, baas Tony, ja, baas Tony.''? [Gelag.] Wat gaan hulle doen? [Do they have the courage to do so or are they just going to say:No, boss Tony, yes, boss Tony.’’? [Laughter.] What are they going to do?]

But clearly, the image of Hector Petersen being carried by a fellow comrade with his sister crying will forever remind us of the cruelty of apartheid. In our province we remember Xolile Musi from Langa - the first student shot after the uprisings of 1976. We remember Ashley Kriel and Anton Fransch - people who laid down their lives to liberate this country.

Part of the apartheid masters’ plan was to make black people their permanent slaves. And people such as Mrs Robinson were sitting very comfortably in Houghton. What were they actually doing? What were they actually doing other than carrying forward opposition politics here in the National Assembly? But we have seen that hon Sinclair and also hon Raju have represented what our youth actually needs, and that is a commitment by all of us to do something about the problem, not to frustrate and demobilise the youth by refusing to establish a youth commission in this province. They introduced Afrikaans as the medium of instruction in our schools and the students rejected this. But now our Government is advancing all our languages, including Afrikaans. Our country in 1994, achieved a breakthrough and that gave hope to our youth; and I have said that here in the Western Cape we lag behind.

Siyazi ukuba apha eNtshona Koloni abantu abamnyama bathwele umthwalo onzima. Siyazikhumbula iidompas; siyabakhumbula oomaCrossroads nejob reservation. Sizikhumbula zonke ezo zinto. [Uwelewele.] UMzantsi Afrika ufumene inkululeko ngo-1994 sajabula apha eNtshona Koloni kodwa ulutsha lufumana iingxaki ezininzi. [We know that here in the Western Cape black people are carrying a heavy burden. We still remember the pass laws, we still remember Crossroads and job reservation. We remember all those things. [Interjections.] South Africa gained its freedom in 1994 and we rejoiced here in the Western Cape, but the youth is experiencing problems.] Die swart en die bruin jeug het gely onder hierdie DA-regering van die Wes- Kaap. Hulle het gesukkel, omdat die voormalige DA-regering nie net blind was aangaande die jeug in die algemeen nie, maar in spesifieke terme het hulle niks gedoen vir swart en bruin jeugdiges nie. [The black and the coloured youth have suffered under this DA government of the Western Cape. They struggled because the former DA government was not only blind to the youth in general, but they did nothing specific for black and coloured youth.]

And what that actually meant is that our white youth, our coloured youth and our black youth in this province have been kept apart from each other and have not been able to actually build this particular country. That is what we have to work against. We have to unite this province and that is why our Premier in this province has said: INtshona Koloni likhaya lethu sonke!'' [The Western Cape is a home to all!]Die Wes-Kaap is ‘n tuiste vir almal.’’ [The Western Cape is a home to all.] We now have to catch up with the progress that the youth in many parts of our country has actually made because of the pious and sanctimonious style of that DA government which actually marginalised and underdeveloped the youth in the Western Cape. Our President has committed the Government to achieving very visible advances in regard to improving the quality of life of all of our people, including opening the doors of learning and culture - a proud clause of the Freedom Charter; the Freedom Charter for which other members of this House want to rubbish the New NP for adopting. Ek vra, het hulle al dieFreedom Charter’’ gelees? [I ask, Have they read the Freedom Charter yet?] Bawufundile uMqulu weNkuleko okanye bathi hayi yinto ye-ANC nje le?'' [Have they read the Freedom Charter or do they say no, this is just an ANC thing?]Ek vra hulle moet die ding lees.’’ [I ask that they read the thing.]

The President has challenged us to make a contract. In this province our education department is meeting with Sasco, South African Students’ Congress, so that we can form a contract to wipe out adult illiteracy in this province. So, Sasco is coming forward. In Pelican Park there is a library that the school governing body has not only added and equipped from resources in the community, but they have opened that library to the Pelican Park community to use on weekends and in the evenings. But then Mrs Robinson comes here and says that the youth have no opportunities because of this Government. No wonder the DA can only now pretend to be a government-in-waiting.

Maar ons mense het al klaar besluit die DA kom nooit weer terug nie. [But our people have already decided that the DA is never coming back.]

I-DA iphelile. Sithi: Phambili lutsha, phambili! [Uwelewele.] [Kwaqhwatywa.] [The DA is finished. We say forward to the youth, forward! [Interjections.] [Applause.]] The CHAIRPERSON OF THE NCOP: May I call upon the hon Minister to address the House.

Mr M O ROBERTSEN: Chairperson, on a point of order: Hon Dugmore, I am Robertsen'' and the hon member over there is Robinson’’, please! [Laughter.]

Mr C DUGMORE: I specifically said “Robinson” with an “n”, and I referred to a lady, which I am sure you are not. Thank you. [Laughter.]

The MINISTER IN THE PRESIDENCY: Thank you, Madam Chair. MEC Dugmore and hon members, before I respond to a few of them, let me first of all thank all the speakers who participated in this debate. Let me just make two points before I respond. The first one is that tomorrow, 16 June, President Mbeki will be handing out national orders. There were a number of quotes made from the former President of the ANC, Comrade O R Tambo the last time I was here. That is why I like this House so much. I think you must teach the National Assembly members something, so they can also quote comrade O R Tambo more often. Part of the national awards is to do with the companions of O R Tambo. [Applause.]

The second one is that Deputy President Jacob Zuma will attend the unveiling of the tombstone of Peter Mokaba at the Peter Mokaba Stadium tomorrow. I am raising this because when we speak about Youth Day I think it is necessary for us to remember one of the great young heroes of our time, and that is Comrade Peter Mokaba.

I suppose I am lucky because I heard two maiden speeches today, and I suppose Mr Goeieman’s great grandfather was correct because he is a “goeie man.” But due to time constraints, I am going to rush through my response as I have to catch a plane, Madam Chair. Hon Raju, who I told you is a poet, used the words “suffocating tentacles” and I hope sometimes that the “suffocating tentacles” that prevent some of the DA people from looking at the truth when they see it can be removed.

I want to start with Mr Thetjeng. When you use words like a farmer who beats his donkey, just think about who your members and leaders are, because you are still treating some of our people as if they are donkeys. To come here and say that most of our youth have lost hope, that they do not have real job opportunities, and that they no longer make job applications, either stems from the fact that that this member lives somewhere else, because he certainly does not live in South Africa, or that there is something wrong with the NCOP if it cannot even teach simple things to its own members. Because you must at least be honest with the truth. You can criticise us of course, but do not come here and make nonsensical statements about the youth not having hope. They have hope, and that is why the majority of them voted for the ANC and not for you. [Laughter.]

It is nonsensical to suggest that our youth today are not interested, because they are. What we have to do to ensure that those of our youth who are still not part of that is to bring them in, so that they can also enjoy the fruits of democracy and freedom. And then to say that the wealth belongs to those who have political connections shows that he actually lives somewhere else. The truth of the matter is that the economy of South Africa still belongs to a minority of a minority of a minority and they are not black; they are white. Who controls corporate South Africa? The only problem is that his party goes and looks for money from them, but they do not even want to give his party any more money because they think they are unrepresentative.

And so hon Sinclair, please do me a favour. We will give you a copy of the Freedom Charter and then you give a copy to Mr Thetjeng, so that by the time we celebrate the 50th anniversary of the Freedom Charter, he would have read it and he would have educated himself. Now Mr Thetjeng, if I were you I would hope that many people stay away from the polls during the next election, because they are going to vote for the ANC anyway.

But I want to turn to Ms Terblanché. I agree with her when she says that we must focus on the years ahead. But you know, your youth should not excuse you from ignorance. If you want to stand in this House and make a totally untruthful statement that the antiretroviral roll-out has been stopped, you must come and demonstrate to us where it has stopped because I think we must have respect for this Parliament and for this House. And one of the things we must have respect for is some elementary truth. If some members want to criticise us let them criticise, but at least let them tell the truth. So, no ARV roll-out has been stopped in South Africa - that is the first thing.

Then she talks about children at a school in Potchefstroom. That is an old tactic of your predecessors too, when they want to pretend that they know some African township names, a name of a school or that of some children. Now, let me teach you something. You cannot just take a group of school children and make a determination that they are HIV-positive, and therefore they should have ARVs. You have not understood the first thing. Firstly, have you gone to the school to check? Have you? Were those children properly tested? Have you checked what their count is so that if it is 200 or less they can then qualify for ARVs? Have you done that? Do you have the information?

Are you ready to bring this information to this House next week? I challenge you to do it. Madam Chair she must come. She must go back to the school and check what the count shows of the children who were tested. It the count shows that it is 200 or less they would qualify for ARVs, and therefore they should be given ARVs. ARVs cannot be given as if it is aspirin. Do you understand that? So, I am a bit angry, because I think that the DA wants to play political games with our people’s lives. It is wrong, because on some of these issues we need to try to find the common ground consensus, so that together we can attempt to deal with some of those fundamental challenges and questions facing us, and that remains youth development.

My only appeal to the DA speakers is to stop playing political football with the lives of our people. It is not going to assist you. You have no hope in hell or of ever winning power in this country, and you would be a grandmother by the time you think you can even get this power. [Laughter.]

So what we need to do is to say you must disagree with us politically, ideologically, theoretically, and on fundamental policy issues. That is part of a political debate and that is part of a political discourse. But to do that Ms Terblanché - I hope you are not related to the one on the horse, and nogal a black horse [Laughter.] - you must be honest with yourself.

If you want to understand anything about HIV and Aids, if you want to understand anything about antiretrovirals, if you want to understand anything about at what point you roll them out, if you want to understand anything about what kind of campaign we need, in order to prevent the spread of HIV and Aids, come and talk to us and you will learn something.

And the last thing I will say to you is that in this province I know they make a lot of noise by saying that they were the first to roll out antiretrovirals. Go and see how many thousands received it, and go and see who were the main people responsible for it. It was Médicins Sans Frontiers. There is a lot of nonsense talked about who is rolling out what. There was very little rolled out here; in fact only a few thousands for all the time that the DA was in power. That is a reality. So I just hope that as we continue this debate, as we continue to discuss these critical challenges facing the youth of South Africa, the least we can do is be truthful with ourselves, if not with the rest of the society. Thank you very much.

The CHAIRPERSON OF THE NCOP: Thank you very much, hon Minister. We sure are going to continue to engage ourselves on the issues that affect our people.

May I take this opportunity to wish all members well who are going to the provinces. I was asked by the Chief Whip to request that you remain in Cape Town to celebrate with the people of the Western Cape. There is a lot to be done and a lot to learn. Let us all go and celebrate the victories of our people and of our young people tomorrow.

Debate concluded.

The House adjourned at 17:51. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS

National Council of Provinces

1. Messages from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council

 (1)    Bill passed by National Assembly on 15 June 2004 and transmitted
     for concurrence:


     (i)     Electoral Commission Amendment Bill [B 7 - 2004]  (National
          Assembly - sec 75)


     The Bill has been  referred  to  the  Select  Committee  on  Social
     Services of the National Council of Provinces. TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Labour

 (a)    Strategic Plan of the Department of Labour for 2004-2007 [RP 81-
     2004].


 (b)    Preliminary Annual Report of the Department of Labour for  2003-
     2004 [RP 63-2004].

1. The Minister of Arts and Culture

 (a)    Report and Financial Statements of the National Library of South
     Africa for 2002-2003, including the Report of  the  Auditor-General
     on the Financial Statements for 2002-2003.


 (b)    Report and Financial Statements of The Market Theatre for  2002-
     2003, including the Report  of  the  Independent  Auditors  on  the
     Financial Statements for 2002-2003.


 (c)     Report  and  Financial  Statements  of  the  Northern  Flagship
     Institution for 2001-2002, including the  Report  of  the  Auditor-
     General on the Financial Statements for 2001-2002 [RP 231-2002].