WEDNESDAY, 17 MAY 2006 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY

                                ____

The House met at 14:00.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

                          NOTICES OF MOTION

The CHIEF WHIP OF THE OPPOSITION: Madam Speaker, I hereby give notice that I intend moving the following motion on the next sitting day:

That the House, acting together with the National Council of Provinces -

(1) should appoint a joint ad hoc committee consisting of representatives of all parties to enquire into all aspects of the abuse of air travel vouchers by MPs -

    (a) the committee should investigate whether members, office bearers
        and officials of Parliament have co-operated in all aspects of
        the investigation into the abuse of travel vouchers, as well as
        whether the Scorpions have an acceptable explanation for the
        tardy investigation which they have conducted; and


    (b) the committee should further consider what steps, if any, should
        be taken by Parliament against MPs involved in the abuse, and
        whether they have been charged, tried or convicted; and

(2) should request the joint ad hoc committee to report to both Houses on an urgent basis.

                        MOTION OF CONDOLENCE


                 (The late Mr P P “Ace” Ntsoelengoe)

Mr T D LEE: Madam Speaker, I move without notice:

That the House –

 1) commemorates the life, the talent and the achievements of soccer
    legend Patrick Pule “Ace” Ntsoelengoe, a great South African
    footballer, and hero;
  2) believes that Ace Ntsoelengoe died too young, when he still had so
     much to offer South African soccer and the stars of the future; and


  3) mourns, together with his loved ones, his fans and the soccer
     fraternity, the loss of a great son of South Africa.

Agreed to.

      ELECTION OF MR A MLANGENI AS TEMPORARY PRESIDING OFFICER

                         (Draft Resolution)

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move without notice:

That –

  1) the House elects Mr A Mlangeni to preside during the sittings
     scheduled for 17 and 18 May 2006, when requested by a presiding
     officer to do so; and


  2) Mr A Mlangeni be elected as a temporary Presiding Officer for 19
     May 2006, in order to enable the Speaker, in terms of the Rules,
     to appoint him as Chairperson of an Extended Public Committee
     scheduled for that day. Agreed to.




                        MOTION OF CONDOLENCE


                     (The late Dr N E K Kuzwayo)

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move the draft resolution printed in the name of the Chief Whip of the Majority Party on the Order Paper, as follows:

That the House –

(1) notes with a deep sense of loss the death of Ma Ellen Motlalepule Kuzwayo, who passed away on Wednesday, 19 April 2006;

(2) recognises that Ma Kuzwayo was a towering leader of our people and she was a distinguished patriot who by her example inspired millions in our country to pursue the goal of the creation of a just society;

(3) acknowledges the great contribution that Ma Kuzwayo made as a Member of Parliament from 1994 to 1999;

(4) recalls that in recognition of her contribution in the effort to bring about democracy in our country, Ma Kuzwayo received a Silver Meritorious Service Award in 1999 and during the Soweto centenary celebrations in 2004 Ma Kuzwayo was honoured with the prestigious Soweto 100 Milestone Award;

(5) believes that the example that Ma Kuzwayo set must be followed by all South Africans as we pursue the goal of the creation of a better life for all; and

(6) conveys its deepest condolences to the Kuzwayo family, her loved ones and the African National Congress.

Agreed to.

                        MOTION OF CONDOLENCE

                 (The late Ms Stella Nomzamo Sigcau)

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move the draft resolution printed in the name of the Chief Whip of the Majority Party on the Order Paper, as follows:

That the House –

(1) notes with profound sadness the passing away of the hon Minister Stella Nomzamo Sigcau, who passed away on Sunday, 7 May 2006; (2) recalls that Minister Sigcau served as Minister for Public Enterprises from 1994 to 1999 and as Minister of Public Works from 1999 until her untimely death;

(3) further recalls that through her work as a member of the ANC National Executive Committee, Minister Stella Sigcau was a patriot who devoted her life to the creation of a nonracial, nonsexist, democratic and prosperous South Africa;

(4) acknowledges the great contribution that Minister Sigcau made in the making and shaping of our democracy, both as a member of this House and the government;

(5) believes that Minister Sigcau leaves behind a legacy of dedicated service and selflessness; and

 6) conveys its deepest condolences to the Qawukeni Royal House, all
    her loved ones and the African National Congress.

Agreed to.

Mnr S E OPPERMAN: Agb Speaker, die heengaan van die Minister van Openbare Werke, Me Stella Nomzamo Sigcau, het ons hartseer gelaat; alhoewel haar dood nie heeltemal onverwags was nie. Ons het haar die afgelope tyd sien wegkwyn en het besef dat sy ernstige probleme met haar gesondheid ondervind. Alhoewel sy van koninklike afkoms was, was sy ’n plat-op-die- aarde mens. Haar vader, Botha Manzolwandle Sigcau, was ’n koning en sy as oudste dogter die prinses van die amaMpondo.

Gister by die spesiale byeenkoms op Lusikisiki het ’n spreker na die streep tussen ’n geboortedatum en ’n sterfdatum verwys as ’n voorstelling van die lewe. Die lewe is daardie seisoen wat aan elkeen van ons gegun word en ook aan die ontslape Minister gegun is, om met ons karakter, ons aksies en interaksies die lewens te beïnvloed van almal wat ons pad kruis, ongeag kleur, politieke oortuigings of lewensbeskouing.

Ek respekteer die ontslape Minister vir haar grasie. Ek respekteer haar vir die passie wat sy gehad het vir die bemagtiging van vroue, veral die plattelandse vrou. Ek respekteer haar vir die ywer waarmee sy haar bydrae gelewer het om die lot van die armes in ons land te verbeter.

Haar familie het ’n suster, ’n moeder en ’n ouma verloor. Die amaMpondo het ’n leier verloor en die ANC ’n kameraad. As DA wil ons ons diepste medelye oordra aan haar familie, haar onderdane en haar party. Mag u krag put uit u geloof. (Translation of Afrikaans paragraph follows.)

[Mr S E OPPERMAN: Hon Speaker, the passing of the Minister of Public Works, Ms Stella Nomzamo Sigcau, has filled us with sadness, though her death was not completely unexpected. We have recently seen her fade away and realised that she was having serious problems with her health. Although she was of royal descent, she was a down-to-earth person. Her father, Botha Manzolwandle Sigcau, was a king and she, as the eldest daughter, was the princess of the amaMpondo.

Yesterday, at a special meeting in Lusikisiki, a speaker referred to the line between a birth date and date of death as a representation of life. Life is that season which is given to all of us, including the late Minister, to exert an influence, through our character, our actions and our interactions, on the lives of all those who cross our path, irrespective of colour, political persuasions or philosophy of life.

I respect the late Minister for her grace. I respect her for the passion she had for the empowerment of women, especially the rural woman. I respect her for the earnestness she displayed in improving the lot of the poor in our country.

Her family has lost a sister, a mother and a grandmother. The amaMpondo have lost a leader and the ANC a comrade. As the DA, we wish to convey our deepest sympathy to her family, her subjects and her party. May your faith provide you with strength.]

After many years of public life, Stella Sigcau died with her boots on. We salute her. I thank you. [Applause.] Mr M B SKOSANA: Madam Speaker and colleagues. Two months ago, when the late Minister of Public Works - who was also my former colleague - Princess Nomzamo Sigcau - took her seat in Parliament, I observed that she appeared frail and tired. I knew that she was recuperating from one of her several bouts of indisposition. I immediately took the liberty to write to her a brief note in supplication that the Lord restores her to good health.

After reading the note, she looked across at me and nodded her acknowledgement. Being a mere mortal myself, I could not have known that behind those soft and unassuming eyes that looked at me lay the extraordinarily graceful acceptance of God’s foreordained meaning and destiny of human existence, which is contained in Ecclesiastes, Chapter 3, verses 1 to 8: “There is a time and purpose for everything. There is a time to be born and a time to die.”

All the tributes paid to the late Princess Nomzamo Sigcau throughout the country spoke of a caring and compassionate South African; a Xhosa Royal Princess; a national Minister of Public Works; a wonderful mother; and a leader with indomitable sensitivity for the rural poor, particularly women and children.

The IFP and its leader, Prince Mangosuthu Buthelezi, join in in expressing sincere condolences to the princess’s family, her people, her friends and loved ones, her organisation – the ANC - and the people of South Africa. May the princess’s soul rest in peace. Amen! [Applause.]

Mr B H HOLOMISA: The Holomisas are invading the space today. [Laughter.]

Madam Speaker and hon members, the UDM once more extends its deepest condolences to the family, friends and colleagues of the late hon Stella Sigcau. The UDM also thanks her for her excellent working relationship with her Deputy Minister, the hon Prof Kganyago. She has indeed groomed him.

Whilst she fulfilled all the various leadership roles that came and went over a long career, she was a mother figure to a great multitude of people. All of those who knew her have spoken of this constant and unwavering maternal aspect of her character. There is no doubt that it is this motherly attitude that underlay her concern for the wellbeing of others.

We bid farewell to a person whose life was lived in service of the people. To the ANC, her organisation, I would like to say that she has finished her innings. We imagine that she will now go and account to people such as the late Chris Hani, Steve Tshwete and Oliver Tambo about the current state of the nation, and indeed of her organisation, and also report on the progress made since the attainment of freedom in 1994. May she rest in peace. I thank you. [Applause.]

Mr C H F GREYLING: Madam Speaker, the ID wishes to extend its heartfelt condolences to the Sigcau family and the ANC following the passing away of Minister Stella Sigcau. Her contribution to the development of our new democracy will always be remembered.

Stella Sigcau was born on 14 January 1927 to the amaMpondo royal house in the Eastern Cape. She obtained a bachelor’s degree from Fort Hare University in 1959, and after the death of her husband in 1964 she took a leading role in representing amaMpondo in politics.

One thing that can certainly be said of her is that she never forgot her roots and she worked tirelessly for the upliftment of rural communities in South Africa. Her passion for rural development must not be forgotten, and the greatest tribute that we can pay to her is to intensify our efforts to alleviate the grinding poverty that so many of our rural populations are still forced to endure. Hamba kahle, Stella Sigcau. [Farewell, Stella Sigcau.][Applause.]

Rev K R J MESHOE: Madam Speaker the ACDP expresses its condolences to the family, friends, colleagues, the ANC, her organisation and loved ones for the sad loss of a great person. Hon Princess Stella Sigcau has left us an unforgettable legacy. Her life is testimony to the triumph of perseverance and courage over trials and tribulations.

Hon Sigcau was amongst the first to recognise that it was lack of better self-esteem and dignity among rural women that posed the greatest obstacle to their advancement. Her lifelong commitment to eradicating poverty among the rural families will always be remembered. And the skills and wisdom with which she has empowered the poorest of the poor will ensure that her hard work bears food for generations to come.

Hon Princess Sigcau achieved results because she walked among the people. She embodied the principle of servant leadership by choosing to listen with empathy and compassion before going out to lead by offering herself in humble service to the needs of the poor. She created an environment of mutual trust so that her leadership truly made a difference to the lives of the people. Servant leadership ensures that power never corrupts and that it is always ethical. The ACDP pays tribute to the magnificent example that Princess Sigcau, a true African princess, has set for South Africa in this regard. I thank you. [Applause.]

Dr C P MULDER: Mevrou die Speaker, minister Stella Sigcau is op 7 Mei in die ouderdom van 69 jaar oorlede – wat in die politiek eintlik ’n relatief jeugdige ouderdom is. Dit is nie so oud as wat mens dink nie. Sy is jare gelede in 1968 op die ouderdom van 31 jaar tot parlementslid vir Lusikisiki verkies.

In die destydse Transkei waar sy vir baie jare betrokke was, het sy die hoogste sport bereik as eerste minister, en daar het sy haar bydrae gemaak, maar ook later in Suid-Afrika tot en met 2006 - ’n tydperk van 38 jaar - waarin sy ononderbroke in die openbare diens gestaan het van haar gemeenskap en die mense van Suid-Afrika.

Ek onthou haar imposante teenwoordigheid baie duidelik by die Kempton Parkse onderhandelinge, waar sy haar standpunt sonder vrees vir enigiemand gestel het. Die afgelope tyd het ons hier in die Huis almal gesien dat dit met haar swaar gegaan het en dat dit nie maklik was nie, en dat die siekte haar ernstig aangetas het.

Ek wil graag namens die VF Plus ons opregte meelewing en simpatie betuig met haar familie en vriende en naasbestaandes en ook met haar party, die ANC, wat ’n kameraad verloor het. Baie dankie. [Applous.] (Translation of Afrikaans speech follows.)

[Madam Speaker, Minister Stella Sigcau passed away on 7 May 2006 at the age of 69 - which in politics is actually relatively young. It is not as old as one thinks. Years ago, in 1968, at the age of 31, she was elected Member of Parliament for Lusikisiki.

In the then Transkei, where she was involved for many years, she reached the top of the ladder as Prime Minister. There she made her contribution, but later also in South Africa up to and including 2006 - a period of 38 uninterrupted years in public service - dedicated to her community and the people of South Africa.

I clearly remember her imposing presence at the Kempton Park negotiations, where she stated her standpoint without fearing anyone. Recently, all of us in the House witnessed her suffering and realised that it was not easy, as the illness had taken a heavy toll.

On behalf of the FF Plus, I would like to extend our sincere sympathy to her family, friends and next of kin and also to her party, the ANC, which has lost a comrade. Thank you. [Applause.]]

Dr G G WOODS: We will miss the late Minister Sigcau and in particular, certain personal qualities, which she always displayed. We found her to be a most unpretentious person who did not engage in political gamesmanship; we also found her to be very dedicated and focused on the various public responsibilities she has had over the years. For that reason, as I say, we shall miss her. Our condolences go to her family, the people of Pondoland and the ANC.

Mr I S MFUNDISI: Speaker and hon members, the UCDP learnt with sadness of the passing away of the affable Minister Stella Sigcau. Having known her in her earlier political life we qualify to share the loss with all concerned and have no doubt that hers is a life worth celebrating, because she fought a good fight in her entire political career. In the Department of Public Works she leaves a legacy of the compilation of the national asset register, the empowerment of the forsaken, marginalised, vulnerable poor people such as women through the Expanded Public Works Programme.

She made a good start by allocating royal palaces to recognised kings. We could not ask for more from her. While we mourn her death we take solace in the hope that she has been promoted to eternal glory where she will find rest in the celestial palace. Our condolences as UCDP go to her entire family, namaMpondomise ephelele [the whole Mpondomise clan], President Mbeki and the government, the ANC, and all South Africans on the loss of this worthy daughter of the soil. May her soul rest in peace. [Applause.]

Ms S RAJBALLY: Madam Speaker, it brings great sadness having to return to the podium on the loss of our beloved princess, mother, friend, comrade and Minister. The late hon Sigcau has served both God and our nation well. Her dedication and commitment to the upliftment of women in rural development has greatly paved roads to achievement. We are sad to lose her as Public Works Minister, and pray that her endeavours in the department to deliver shall continue. We express our sincere condolences to the presidency, the electorate, the Department of Public Works and the ANC on the loss of a great woman.

Our sincere condolences are further extended to the family, friends and loved ones of the deceased, and we pray that God will give you the strength to overcome this difficult time. Hon Sigcau, we pray that you will meet our Maker in the gardens of heaven, and watch over us as we strive to attain a true democracy. Thank you. [Applause.]

Mr S SIMMONS: Madam Speaker, on behalf of the UPSA I wish to extend our deepest sympathy to the royal house at the passing away of the late Princess Stella Sigcau, Minister of Public Works. Our deepest condolences are offered to the family and the ANC. We have lost a true daughter of South Africa.

The UPSA will remember the late Minister Sigcau for her devotion and service to the people of South Africa. Her colossal contribution towards the success of the RDP and economic empowerment programmes of the government was remarkable, which she has done like everything else with great distinction.

She was a Minister with a firm understanding of the plight of women in South Africa. For her involvement in community projects but especially amongst women, she will be remembered where she has seemed to be a mother figure. Also her consensus-seeking approach to issues was admirable. The late Stella Sigcau has served South Africa well. May her soul rest in peace. I thank you.

Adv S P HOLOMISA: Somlomo, ndicela ukulungisa nje izinto ezimbalwa: Wazalwa ngo-1937, hayi ngo-1927. [Speaker, I want to correct a few points: She was born in 1937, and not 1927.]

That is also the year in which my mother was born.

Okwesibini, yinkosazana yamaMpondo, hayi yamaMpondomise. [Secondly, she is the princess of the Mpondo tribe, and not of the Mpondomise.]

AmaMpondomise are a different tribe.

Somlomo, malungu abekekileyo eNdlu yoWiso-mthetho, ngokusweleka kukaMama uStella Nomzamo Sigcau - Zanokhanyo! - amaMpondo alahlekelwe yinkosazana, umafungwashe.

Umbutho wakhe i-ANC ulahlekelwe liqabane, itshantliziyo. Iinkosi nombutho wazo i-Congress of Traditional Leaders of SA zilahlekelwe yinkokheli, ifanankosi. Isizwe soMzantsi Afrika silahlekelwe ligorhakazi, umsebenzi nomthandi waso.

Abantwana nabazukulwana bakhe balahlekelwe ngunozala, kanti ke thina, njengamalungu ale Ndlu yoWiso-mthetho, silahlekelwe ngugxa wethu, ilungu, nomphathiswa. Sizilile ke ngoko. Sonke siyakhala, sinyembezana, ngenxa yokuba ebelulutho kuthi sonke. Kakade besingekhe sogqithwe ziinkomo, kuba nazo zigxwala emswaneni wenye yazo xa ithe yafa.

Noxa kunjalo, Somlomo, silila singalili; silila singalili kuba siyazi ukuba wonke umntu odalwe nguThixo uphilela ukuba abhubhe lakufika ixesha alibekileyo uSomandla. Siyazi ukuba umkhonzile uThixo wakhe, ngoko ke asilili njengabangenalo ithemba.

Silila singalili kuba sonke siyazi ukuba umntu onjengaye, ozezi zinto sele zichaziwe, ukwenzile konke abefanelwe kukwenza. Uyile esikolweni, wafunda wapasa. Uzuze isiqinisekiso sobufundisi-ntsapho, wafundisa. Kufike ixesha lokuba ende, wenda, wazala abantwana, wabakhulisa, wabafundisa.

Ngexesha ebesesesikolweni ithuba laye lavela lokuba azibandakanye nombutho wesizwe i-ANC, wazibandakanya nephiko lawo lolutsha, i-ANC Youth League, walisebenzela, walikhokela.

Iimeko zexesha aphile kulo zimbangele ukuba aphulaphule imiyalelo kayise, uKumkani uBhotha Manzolwandle Sigcau – Jongilizwe! - owathi makabuye emzini kwakusweleka umyeni wakhe aze kumela amaMpondo kurhulumente owawunyazelisa iinkosi ukuba zibe yinxalenye yawo kuloo rhulumente. Siyazi ukuba kumasebe ngamasebe obo burhulumente uyidlalile indima yakhe, engumzekelo, esoloko eyibazele iliso elibukhali imeko yentswelo yabantu abazinze ezilalini. Akekho umntu oqiqayo ongayaziyo into yokuba oorhulumente bamaphandle babengenzelwanga ukuphuhlisa abantu abamnyama, koko babenzelwe ukuba kulibaziseke iphulo lokulwela inkululeko. Besingekwazi ukulifulathela eli sonke, kuba umcinezeli engaphezi ukumngcikiva umntu oNtsundu. Kwanyanzeleka ke ngoko ukuba ezinye iinkokeli zihlale ekhaya. UMaNyawuza ube yenye yezo zahlala ekhaya.

Ndingomnye wabantu abakhulele phambi kwakhe ngexesha lombuso wase-Transkei. Besele ndiqabukile ngexesha lalo rhulumente. Andikhumbuli ndisiva kusithiwa utshutshise abantu bakuthi kuba besilwela inkululeko. Ewe, bebeshiyana abantu bezo zirhulumente ngothakazelelo lwabo lokuphumelelisa iinjongo zocalucalulo. Andimazanga njengomntu ochasene nedabi lenkululeko yokwenyani.

Ndimkhumbula njengovulindlela okwazileyo ukuthi elibhinqa enjalo, ngexesha ebelingayiva kakuhle into yokungenelela kwabafazi kwimicimbi yombuso, azibonakalise ubunkokeli bakhe. Akakhange aveyishwe njengomfazi, koko njengenkokeli ebingumzekelo, esenza nabanye oomama ukuba bakhuthaze iintombi zabo ukuba zifunde ukuze nazo ngenye imini zibe ziinkokeli njengoStella.

Noxa kunjalo, ebehleli engumama, engazenzanga indoda kuba efuna ukwamkeleka njengenkokheli. Kwimibutho yoozenzele, ubakhuthazile abafazi ukuba bayenze ngendlela enengeniso imisebenzi yabo yokulima nokusebenza ngezandla.

Siyambulela uSomandla ngokuthi amgcine, amkhulise ade akwazi ukuba negalelo kumsebenzi wokuguqula uMzantsi Afrika ube lilizwe elikhululekileyo.

Igalelo lakhe ngexesha leengxoxo lanika isidima kwiintetho ezimalunga nokuhlonitshwa kobukhosi kuMgaqo-siseko, ngexesha igazi lalishushu, kukho ababengaqondi ukuba ubukhosi lilifa lesizwe esiNtsundu, ongathi wakububhangisa, ube utshabalalise isizwe. Siyi-ANC siyambulela.

Khangela isidima nesithozela othe umsebenzi wakhe wokugqibela waqhutywa ngaso kokwabo eQawukeni, xa urhulumente neenkosi bezibambisene, watsho wangumzekelo wentsebenziswano efunekayo kweli lizwe. Iinkosi, Somlomo, aziwuhlanganisi kukuncoma. (Translation of isiXhosa paragraphs follows.)

[Speaker, hon members of the National Assembly, with the death of hon Stella Nomzamo Sigcau - Zanokhanyo! - the Mpondo tribe has lost a princess, a firstborn in the family.

The ANC, her organisation, has lost a comrade, a fighter. The kings and the Congress of Traditional Leaders of South Africa have lost a leader, a comrade. South Africa has lost a hero, a worker and a patriot. Her children and grandchildren have lost a parent and members have lost a colleague, a member and a Minister. We are mourning. We are crying and in tears because she was an asset. Cows empathise with a dead one, let us pay tribute to her works as well.

Nevertheless, Speaker, we are crying tears of sorrow but we have a clear consciousness that God stipulated that men should die at a certain stage. We know that she was loyal to her God, and therefore we cry with hope.

We are crying tears of sorrow but we are proud of the fact that she has made a great contribution, as the previous speakers have stated. She went to school and gained an education. She received her teacher’s certificate and taught. She married and had children; she brought them up and gave them an education. When she was a teacher she got involved with the ANC and became a leader and a member of the ANC Youth League.

After the death of her husband she had to listen to the call of his father, King Botha Manzolwandle Sigcau - Jongilizwe! - to return home to represent the Mpondo tribe in the government sphere and to heed a plea whereby the kings were asked to be part of a government plan.

When she joined different government departments she played a great role in rural development. Everybody knows that the Bantustans were not just there for the development of black people but to fulfil the fight for democracy. We could not all turn our heads against that because the enemy kept on oppressing. This forced the leaders to remain at home. MaNyawuza was one of those who stayed at home.

I am one of those who grew up in front of her during the Transkei government. I do not remember her being accused of oppressing our people when they were fighting for freedom. People were different in their approach when dealing with the plans of apartheid. I did not see her as someone against freedom.

I remember her as a leader that was able to lead as a woman during those times of discrimination against women. She was never measured as a woman but as a leader, and she set an example to most women to encourage their girls to be like leader Stella one day. Nevertheless, she remained a woman and never pretended to be a man to be accepted as a leader. She encouraged women in sewing and gardening projects to manage their projects in a profitable manner.

We thank the Lord for her life as she had a great input in transforming South Africa towards freedom. Her contributions during debates gave dignity towards respect for traditional leadership by the constitution, when there were conflicting views about understanding that traditional leadership is part of black people’s heritage, and that its death would lead to the death of the nation. The ANC says thank you.

Her funeral at Qawukeni is testimony to the fact that government and traditional leaders are working hand in hand as a symbol of co-operation that is envisaged in this country. Traditional leaders, Speaker, are grateful.]

Her contribution to the democratic government of post-1994 until the time of her death is public knowledge. She continued to be the champion of the underdog. She was unflinching in her support for the empowerment of black professional women while she was Minister for Public Enterprises. She was equally committed to the involvement of women in construction while at Public Works.

In the rural communities she uplifted the dignity and pride of the people by constructing decent palaces for the kings of the land. There was still more she wanted to do, but time didn’t allow for that.

Sithi lala ngoxolo, Thahla kaNdayeni, Nyawuza okade akhile. [Kwaqhwatywa.] [We say rest in peace, Thahla kaNdayeni, Nyawuza, okade akhile.] [Applause.]]

Motion Agreed to.

The SPEAKER: The motion has been agreed to and the condolences of the House will be conveyed to the Qawukeni royal house and the ANC. We will also add to them the condolences of the presiding officers.

                         APPROPRIATION BILL

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

The MINISTER IN THE PRESIDENCY: Madam Speaker, hon members, by chance tomorrow marks an anniversary which has correctly but regrettably not been included in the national calendar of high-profile national anniversaries. Eight years ago on 18 May this House gave its assent to the first GCIS Budget Vote, and it is the formal date on which the department was launched.

This coincidence serves to remind us of the long journey that we have travelled in ensuring strategic content and coherence in government communication, the better to serve the people as demanded by our Constitution.

Critically, we proceeded from the understanding that without information, there could be no popular participation; without popular participation there could be no lasting legitimacy or transformation of society.

It is accepted without question that good communication lies at the root of success in the fast-moving global world in which we live, particularly in matters of delivery and development. It fosters the necessary environment for the pursuit of partnerships leading to shared growth and a better life for all.

For those of us who enjoy the freedom that came through struggle and who today live in our country’s age of hope, the questions must be: To what extent are we acting to build on our country’s achievement in order to help ensure that the public is informed about its rights and responsibilities; to what extent are we co-operating to ensure that those who are disadvantaged know about the opportunities that democracy has brought, and are then able to take advantage of them?

The core mandate of government communication is to meet the communication and information needs of government and the public. The government’s mandate requires that communication expand access to opportunities and help the people of South Africa to act as their own liberators. It should bring the realities of an emergent and thriving democracy to the attention of the international community. It should promote the renaissance of Africa, including regional integration and the implementation of people-centred development programmes.

In the current period, guided by the popular mandate of the 2004 and 2006 elections, government communication is a critical instrument in harnessing the groundswell of hope and optimism in our nation into concrete action for higher rates of growth and development.

The experience of government over the first decade of our freedom has taught us that, for social change to succeed in changing people’s lives for the better, it is critical that we should build partnerships across society in a national effort to lift the country to a faster trajectory of development.

In this context, four critical issues in government’s programme for the decade will have a significant impact on progress towards the society envisioned in our Constitution. They are: Fulfilment of the socioeconomic goals defined in government’s mandate; Asgisa as the focus of a national effort to create employment and fight poverty; the formation of new local government with a five-year mandate; and hosting the 2010 Soccer World Cup.

The central question of this GCIS Budget Vote debate therefore is: What is the GCIS doing to promote the achievement of these common national objectives?

On that day eight years ago when I had the privilege of presenting the plans of government communication to use their first budget, I reported that GCIS would “work with the provinces to complete a model for provincial communication structures”. Today I can report with confidence that we have forged a system that integrates provincial government, and that a breakthrough has been made in extending the system to the local sphere.

Last week a national conference on local government communication was convened to consolidate a year of provincial workshops in every province that grappled with building local government communication capacity. Over 200 municipal communicators and many newly elected councillors, with responsibility for communication, and some municipal managers gathered to deliberate on draft guidelines for a municipal communication system.

They also developed a draft communication programme to support the five- year strategic plan for local government and to help communities become more active in their municipalities. Foremost among issues in the plan is a mass door-to-door campaign to raise awareness of the priorities in the municipal integrated development plans and to improve the functioning of ward committees as principal platforms of communication and governance.

Attention was paid to building a network of communicators, councillors, community development workers, social workers and others – working in partnership to listen to communities and explain how they can change their lives for the better.

At the close of the conference, the municipal communicators adopted the “Tshwane Declaration”, committing themselves to a sustained communication programme over the next five years to advance the development agenda of government in the local sphere.

They committed to building a partnership with the public that includes enhancing community participation and local government accountability and transparency through improved communication, strengthening local government communication as a development tool, and enhancing service delivery and development programmes through intensified communications support.

There can be no doubt about the significance of this development. In the same measure as national and provincial priorities find expression in the crucible of local activity, so should the broad messages in these other spheres find concrete articulation in local communities.

In this context it is relevant to reflect on the level of participation in the recent local government elections. There were many predictions, especially amongst some media analysts and commentators, of a turbulent local election with low levels of participation and reduced support for the incumbent party. There were suggestions that the levels of protest and dissatisfaction indicated alienation from the democratic system and put a question mark on the country’s stability.

But the voting trends and published research conducted before the elections threw a different light on the situation. Not only was registration up, but also the turnout of registered voters was slightly up. As a result, 1,3 million more citizens cast votes than in the previous local election. What is more, in many of the wards affected by civic protests, turnout was above the national average.

This divergence between the analysis of some media experts and the opinions of the citizens should be food for thought. What is clear is that the citizens of this country are deeply committed to our democratic system, and to working with their elected government to improve their lives.

Parallel but intimately related to this initiative to build local government communication capacity, has been the further evolution of the imbizo programme during the past year. The municipal imbizo programme, co- ordinated by the GCIS, the Presidency and the Department of Provincial and Local Government, brought the executive from all spheres into direct interaction with elected representatives, municipal managers and other officials to identify the concrete things that need to be done to improve provision of services to the public.

Combined with interactions with local communities, these izimbizo have created the platform to attend to concrete problems in a concrete way. Virtually all Project Consolidate municipalities were covered, either through district izimbizo of the President and Deputy President or local izimbizo of Ministers and Deputy Ministers.

The National Imbizo Focus Week held a month ago focused on interaction around local programmes of action to promote speedy implementation of government programmes including Asgisa. Through this programme we have, in actual practice, come to better appreciate the dynamic link between communication and project implementation, between information dissemination and development, between knowledge management in communities and people- driven development.

We have also ensured that interactive communication is accompanied by a multimedia approach to communication, using products and platforms that meet the needs and preferences of each sector of the population.

Language and format is one dimension. The annual mass campaign to popularise government’s programme of action for 2006 has, again, used all official languages, including Braille. It has included a photo story in publications with wide reach especially amongst the poor, and a series of radio dramas in all languages except English. The placing of photo stories is part of government’s advertising expenditure, a trend that the Portfolio Committee on Communications has, for some years, shown a keen interest in.

I am happy to report that about half of the national departments of government make use of the GCIS bulk-buying facility, and, as a result, trends in government advertising expenditure are increasingly matching trends in public media usage, with a focus on those who need government information most in order to improve their lives.

Preliminary indications from recently conducted research are that the patterns of ad spending by government departments that use the GCIS facility are closer to the patterns of public media usage as measured by readership and audiences compared with those that don’t. It will therefore be a continuing priority to promote wider use of this facility across government.

Government regards the media as an extremely important institution and a partner in ensuring that citizens have the greatest access possible to information.

The regular media briefings on implementation of the programme of action – and updating of progress of Government On-Line – continue to provide the public with factual information on the basis of which analysis and assessment of progress can be made. Content from BuaNews Service continues to gain increasing profile in both domestic and foreign media. Usage of the BuaNews site has increased by some 20% a month since its recent upgrade.

These, then, hon members, are some of the ways in which GCIS has, during the past year, sought to expand public access to government information. Research indicates that these efforts have had an impact, and that the proportion of the public who feel that they are receiving “enough” information from government has significantly increased. Nevertheless, that proportion is still too low, and it is lowest amongst those most in need of such information.

In order to enhance our reach in this regard, last year we launched the popular government magazine Vukuzenzele. With a circulation of 1 million copies, the magazine is now in its fifth edition, and it has consistently elicited an enthusiastic response and requests for more copies than it has been possible to supply. What we can say with confidence is that the practical information it provides in all official languages and Braille is clearly meeting a public need.

The Batho Pele Gateway Call Centre is used by Vukuzenzele as a back-office to provide readers with a one-stop source of further information. This has increased calls to the centre many times over, particularly amongst African language users. Most calls by far are either from people wanting to know where to get copies or seeking further information about opportunities and programmes covered in the magazine.

The mass communication campaign to broaden access to economic opportunities continues, using a second addition of the core publication - also in all languages. The information is being disseminated through workshops across the country. The 13-part TV series on economics opportunities, flighted on SABC2 – Azishe Ke! - which was broadcast from October 2005 to January 2006, will be re-broadcast in October this year.

The Multipurpose Community Centres provide an important and expanding infrastructure for people to access government services and information about opportunities. By the end of March 2006, 88 MPCCs were in operation, and we look forward to celebrating during the course of this year the 100th MPCC to come into operation.

As the MPCCs are rolled-out, research has been conducted in 66 MPCCs on their impact and functioning. Centre manages have been trained in customer care and Batho Pele principles of service delivery. The goal remains an MPCC in each local municipality by 2014. Better funding mechanisms for this programme are being finalised in discussion with National Treasury.

It is gratifying to record progress in the efforts to make information about the opportunities more accessible. But welcome as this is, it needs to be multiplied many times over to meet the public need. As in all crucial initiatives to transform our country, government cannot on its own bring about what must be done.

GCIS therefore places a high premium on partnering communicators in the private sector, nongovernmental and community-based organisations and state- owned enterprises in addressing the communication needs of second economy communities. One of the critical questions we have posed is whether as GCIS we do fully understand the dynamics of life in these communities.

To take this matter further, and in addition to utilising the practical experience of our operatives on the ground, we are planning a workshop of all role-players to see how the many current initiatives can be expanded and what new approaches we can adopt to extend this reach.

Part of the communication partnership finds expression in the Media Development and Diversity Agency, which is now three years old. We are proud that the MDDA is succeeding in doing what it was established by law to do, namely, providing support to the development of the small media sector.

I would like to take this opportunity to acknowledge the very great contribution that was made by its first CEO, Libby Lloyd, who with the support of the board and the staff put the agency on a sound footing. The way it has conducted its business has gained wide respect, including from those who doubted the feasibility of this initiative. We wish the newly appointed CEO, Mr Lumka Mtidi, and staff the very best in continuing this important work.

The MDDA was able to report to the portfolio committee before this debate that it had complied with all the regulations and requirements of the Act; that it had disbursed all the funds it had received from government; that since 2003 it had approved support for 97 media projects across all provinces, and that it had been able to continue to complement financial support with quite extensive support-in-kind by tapping networks of expertise.

The process towards the transformation of the marketing, advertising and communication industry has moved steadily forward, following a ceremonial signing of its transformation charter in November 2005. Since then, work has been done to bring still further role-players into the charter process while ensuring that its content complies with phase 2 of the codes released by the Department of Trade and Industry, DTI, in December 2005. This meant, for instance, incorporating into the charter the industry’s target for completing the first round of implementing the charter earlier – by 2014 - compared to the DTI 2016 timeframe.

The Monitoring and Steering Committee is finalising, in consultation with the DTI, a draft constitution for a Charter Council and its funding. We are confident that in the coming few months the committee will be ready to submit the charter to the Minister of Trade and Industry for approval and gazetting for public comment.

The Academy of Government Communication and Marketing, in partnership with Unilever, the Mandela Rhodes Foundation and the Wits School of Public and Development Management, this week began teaching its third intake of 40 students from all spheres of government and some state-owned enterprises. The demand for places on the course remains high and as the initiative enters its third year the partnership will be taking stock of progress and charting a way forward.

As already noted, the hosting of the first African World Cup in 2010 represents a great opportunity for South Africa. After consultation with FIFA and the 2010 local organising committee, the 2010 National Communication Partnership held a launch workshop in November last year with the support of about 150 delegates from public and private sectors representing the spectrum of communication disciplines.

Working through the International Marketing Council (IMC) and GCIS, the partnership is preparing for the time at the end of the 2006 Soccer World Cup in Germany when South Africa’s communicators can make the most of the communication opportunities of the first African World Cup, to build national unity and African solidarity, to market the country and continent, and to foster the climate for faster and shared growth. [Interjections.]

Mr M J ELLIS: Wake up! I know it’s boring, but you have to keep awake.

The MINISTER IN THE PRESIDENCY: Listen! It’s about time you learnt some good manners. You are so rude and ill-mannered that I really don’t know how the DA can still keep you. If they had any brains they would have long since gotten rid of you. [Laughter.] [Applause.]

At the same time, the experience of other countries hosting very large events tells us that there is a premium in such situations on ensuring co- ordinated and consistent communication about the state of readiness and the myriad opportunities that the event offers. From our own recent experience, we can learn how narrow communication can undermine the interest of South Africa – how much more will this be the case when the whole world focuses on South Africa!

The International Marketing Council, IMC, which is a key element of 2010 Partnership, is itself a partnership of various sectors of our society to ensure that our country’s communicators in all walks objectively reflect the realities of our society, to ensure that as a people we close the gap between perceptions and reality in this regard, so that the world can appreciate all those attributes that make South Africa, as the IMC puts it so aptly, ``Alive with Possibility’’.

During the past year the IMC has made progress in its mandate to engage the stakeholders and other role-players to promote co-ordination and coherence in branding the country. This has included important work with a number of provinces to ensure that the branding of provinces is aligned with that of the country.

The emphasis of the IMC’s work has decidedly shifted to the international stage, both in intensity and scope. In this regard, it is most welcome that it is extending its country brand manager formula initiated in Britain and the USA, to a third continent, with the appointment soon of a country brand manager in India. There, the emphasis will be less on correcting a false image of our country, but rather of ensuring that investment and tourism opportunities are taken up by one of the emerging giants of the world economy.

The task of shifting negative perceptions of our country is one that will take time, effort and skill. The commitment of the IMC to put Asgisa at the centre of its marketing campaign will advance that task by helping to focus international attention on the strength of our economy and the opportunities of participating in our programme of accelerated and shared growth. Indeed, through its work, the IMC is emerging as one of the vital weapons in the armoury of our quest for national reconstruction and development.

Progress in the work of the IMC depends also on how South Africans deal with the kind of events that are so easily turned and manipulated to conform negativity about our country. Do we take a number of high-profile crime incidents occurring in the context of a positive trend and suggest that the country is in an upward spiral of crime? Do we take the trial of a prominent member of society as a rupture in our body politic or as an affirmation of the strength of our democracy? Do we take the exposure of malfeasance in the public and private sector as a reflection of the character of our society or as the exception to the rule; the exposure of such activities being a pointer to our open democracy?

These questions are challenges for all of us, both media and society. What has been outlined is both an account of the use we made of the funds allocated the last financial year and our priorities for 2006-07:

The budget allocation for 2005-06 of R249,130 million was spent as planned. There was however an expected saving in the budget for Vukuzenzele, based on the fact that we only received notification of the allocation in February last year. Even so, we managed to establish the magazine and produced four editions in the first financial year.

The allocated budget for 2006-07 is R288,037 million, representing an addition to the baseline of R38,9 million. These additional funds will go towards the government magazine Vukuzenzele, the Media Development and Diversity Agency, the Multipurpose Community Centres programme and the International Marketing Council.

We are very grateful and appreciative of the work and support provided by the Portfolio Committee on Communications and in particular the former chairperson of the committee, Mr Kgaogelo Lekgoro. We wish Mr Lekgoro well with his new responsibilities as a member of the executive in the Gauteng province.

I take this opportunity to express my gratitude and appreciation to the members of the board and staff at the International Marketing Council, in particular the chairperson Ms Wendy Luhabe and the CEO, Ms Yvonne Johnston, as well as the members of the board and staff at the Media Development and Diversity Agency, for their tireless work and commitment.

I would like to offer a word of warmest congratulations to Mr Joel Netshitenzhe and his gallant GCIS team for the impressive way in which they have run this crucial government operation over the past eight years.

Finally, I commend the GCIS budget to the House. Thank you very much, Madam Speaker. [Applause.]

Mr G G OLIPHANT: Madam Speaker, hon Ministers, Deputy Ministers, comrades and friends …

Mr M J ELLIS: What are we, comrades or friends?

Mr G G OLIPHANT: Both. The formation of the Government Communication and Information System, GCIS, eight years ago, laid a solid foundation for the democratic government, under the leadership of the ANC, to ensuring that the South African public is reasonably informed about its government policies, plans and programmes.

This was made possible by the systematic hard work of the GCIS staff and leadership to whom we are very grateful. Tomorrow, on 18 May 2006, this body will be celebrating its eighth birthday. Therefore, it is befitting that we also recognise the sterling work done by the task group on government communications, Comtask, which was appointed in January 1996 to facilitate the transformation of SA Communication Service, SACS, from its regrettable legacy of the past, to that of a democratic state governed by the Constitution, whose 10th anniversary we celebrated a few days ago.

Through these collective efforts, the South African public is now more informed than ever before about political activities in the country and, more particularly, about access to economic opportunities available to them. The image of our country abroad has also improved dramatically from the negative perceptions of the past to an impressive picture of a South Africa alive with possibilities.

This situation poses both challenges and opportunities to which I shall refer later. Today, as a result of the efforts of the GCIS, The International Marketing Council, IMC,and the vibrant South African civil society, we will be hosting the FIFA 2010 Soccer World Cup for the first time on this continent. Don’t be shy, go ahead. [Applause.] [Laughter.] The DA is misbehaving, but it is okay.

This will bring about enormous economic, cultural and possibly political opportunities to our country, enhancing our efforts to build national unity and African solidarity, to market our country and continent, and to foster the climate for faster shared growth.

We are assured by those who are directly involved in this process that our country is combat-ready to handle the task of this magnitude and that the launch of the South African offensive will commence immediately after the German Soccer World Cup, in line with FIFA guidelines.

We, however, wish to encourage our foreign missions to redouble their efforts in order to ensure that the South African message is loud and clear: A country that presents a confluence of encouraging possibilities.

On 14 March 2006 the GCIS presented to the portfolio committee their strategic plan and budget for the Medium-Term Expenditure Framework period 2006-09, including their annual report for the previous financial year. We are encouraged by the quality of work done and the systematic communication strategies carried out by this corporate body. My colleagues will elaborate further on these impressive achievements.

Let me, however, highlight some of the programmes and projects that characterise the work of the GCIS. There were 84 MPCCs in operation by the end of February 2006 with the goal to establish 284 MPCCs by 2014, one in each local municipality. The Minister has alluded to an increase in that number and we are pleased that the roll-out is going very well.

This roll-out has especially benefited rural communities with essential government information and services in order to improve their lives. An impact assessment research was conducted in 66 of them and measures were taken to improve service delivery to affected communities.

We would encourage members to link up with these centres in their constituencies, and also to make information available from GCIS to their constituencies for improvement in service delivery.

The Media Development and Diversity Agency, MDDA, continues to play a pivotal and important role in supporting community media projects, small commercial projects and research projects, with specific emphasis to support media projects focusing on rural communities and audiences not adequately covered or served by other media.

The continuous engagements in the process towards the transformation of the advertising and marketing industry need to be encouraged. Members would recall that in 2002 the Portfolio Committee on Communications raised problems with the composition of this sector in terms of racial bias, which was lily-white and male, and also lack of transformation in general. We note with appreciation the progress that has been achieved in this sector and still believe that more work needs to be done.

Coming to the programmes that we have raised before, we are also particularly pleased to know that the patterns of government ad spending increasingly match those of public media usage. The hon Minister has alluded to this fact and we are very grateful. This is an improvement and we want to encourage that.

Other programmes that are doing very well to keep the South African public informed include the magazine format for insertion Vukuzenzele, a series of radio dramas in all languages, excluding English, and especially the summary of the state of the nation address published in all languages, including Braille. The regular briefings on implementation of the government’s programme of action and updating progress on government online, the BuaNews service that, Minister, you have alluded to, is increasing its profile in both domestic and foreign media.

Finally, the evolution of the imbizo campaign where government, at all levels, interact directly with the public is increasingly becoming a feature in our young democracy. This represents a tradition and culture embedded in the ANC. This is now also increasingly becoming the norm of government communications.

All we can say is to keep it up, the ANC supports the Budget Vote. [Applause.]

Ms M SMUTS: Thank you, Mr Acting Chairperson. May I, through you, offer my apologies to the hon Minister in the Presidency for arriving a little bit late. I was at a function celebrating the launch of broadcasting over cellphones, at which proceedings were a little bit delayed by the late arrival of his hon sister Minister. It was a very exciting event. You can see the soccer ball here. We heard Meadowlands sung with 2010 lyrics. There are great days ahead.

The GCIS will be taking its performance under review after the weekend meeting of the President’s International Investment Council. (IIC) The international business leaders on that council believe we can achieve more than 6% growth by 2010, provided we deal with negative perceptions as they come up, whilst continually marketing the country. The hon President was quoted as saying that events that arose locally and internationally tended to dominate international perceptions of South Africa and needed to be dealt with as they came up. He feels that it is not as though there is a package of issues that is permanently in the minds of the rest of the world. Well, there is of course the government’s posture on Zimbabwe that has, over time, become part of such a package, and so has government’s stance on HIV/Aids, now further complicated by the former Deputy President’s ablutionary approach to the pandemic.

But the hon President and the IIC are absolutely right in saying that we need to have answers when the events that arise locally have an impact on foreign perceptions. Events, after all, shape not just investment but all of politics, all of economics and, therefore, history, because as Harold Macmillan said, “Events, dear boy, events”, when an interviewer asked him what the most difficult factors brought to bear on his prime ministership were. Events can be decisive. Now how do we deal with them?

I wish to come to the defence of the GCIS today. First, the continual marketing of South Africa by the International Marketing Council is excellent. The IMC is a joint effort with the private sector. Their resources are modest and we support the increase of the transfer to Yvonne Johnston and her team with pleasure.

Four years ago, when this body was started, no country was really actively doing nation-branding, but we soon did. Indeed, hon members may remember how interesting it was to learn then from the IMC that our former President, President Mandela, was second in the world only to Coca-Cola – measured by this new criterion of branding.

Now today nation-branding is the buzz word, as the IMC tells us. There is a growing realisation that the global market is a competitive place, and few nations can compete in terms of efficiencies of scale or size of market, or opportunities, or budgets with China and India.

In South Africa there are four. We need to focus our effort, to use our limited resources well - the IMC says - and, most of all, create clear, consistent messaging that emphasises our distinction, our attractiveness in relation to those global giants.

Now, already, I see the IMC is working on a business case for additional funds, following the weekend pronouncements. If you consider that an advertisement in Time or The Economist alone costs R750 000, we have to be sympathetic. But, sir, does that address the problem created by “Events, dear boy, events”? Does it address it?

Take the example of the FIFA World Cup now. The baton, as the hon Oliphant has said, formally passes to us this July when the German World Cup is over, and so the IMC will market very keenly in Germany. I suppose that it is that key focus area that caused our Cabinet to overreact so inappropriately when Sentech, the signal distributor, did its duty and told this same portfolio committee again what it has been telling us for four years - that it needs half a billion to a billion rand to upgrade our broadcast-signal distribution infrastructure.

For pity’s sake, nobody makes analogue equipment anymore. Ours is falling apart. We couldn’t replace it even if we wanted to, and the engineers who can implement those changes have anyway retired or passed on. So, we need to digitise, but the Department of Communications has ignored Sentech’s pleas for years.

Sentech’s position, therefore, was nothing new. It simply, responsibly, in my view, added the fact this year that there was no way we could offer the communications facilities which our agreement with FIFA required if we didn’t start digitising now with immediate effect.

Minister Alec Erwin heard them, and the Department of Communications did at last offer some money in this budget, but it is only a third of what is needed. When this newsworthy fact was reported, Cabinet took a swipe at Sentech, which, I think, is regrettable. It is not Sentech’s fault; it is the Department of Communications fault.

When the International Investment Council says we should communicate more effectively in reaction to events by explaining our policies, I have to ask: When the programmes or policies are not in place or when they are inadequate, what on earth are communicators supposed to do? What are the IMC and the GCIS supposed to do? The hon Minister and the CEO of the GCIS are very influential figures. In my view, they should see to it that the relevant Cabinet members have programmes in place before anybody else is taken to task.

I imagine that the division of the GCIS that will come under pressure following the ICC meeting is not just our International Marketing Council in terms of Programme 6, but Programme 3: Government and Media Liaison, which must manage the news, and they too have my sympathy.

It is my view, sir, that the GCIS has built up a really professional operation over these few years. Its work has expanded to include all the spheres of government, not coincidentally, given the local government elections this year, I think. But we, therefore, have kept an eye open for propaganda, which exceeds the bounds of legitimate government information.

Hon members may know that one instance of such party-political propaganda, paid for by tax or ratepayers, were the pro-ANC publications of the previous Cape Town administration - the previous one. Therefore, I questioned the GCIS officials on this matter and they said to me that once trained, the relevant communicators from the various spheres of government go their own way and are supposed to work under the regulations that govern their work.

Now it is absolutely clear that the regulations are not sufficiently strong, as Raymond Louw - who sat on Comtask - said, and as we have said all along. My colleague, the hon Gareth Morgan MP, has published a private member’s Bill, which seeks to mend the weaknesses. One of them is the fact that the current regulations do not contain effective sanctions and penalties. I therefore urge all my hon colleagues in this House to look seriously at his private member’s Bill, and let’s see if we can mend this defect.

Voters, sir, cannot be fooled by spin when things spin out of control. When the lights went out in Cape Town, there was darkness in addition to negative international media reports, not to mention no coffee, no tea, or TV. Government couldn’t say what solutions were in place because there weren’t any.

I must just warn hon members that any day now you may have lights outside of Cape Town, but no TV because an analogue transmitter sitting on a high site somewhere has finally fallen over or otherwise expired. “Events, dear boy, events” determine the course of politics and, inexorably, of investment, and the thing presumably is to anticipate them - and that’s not the GCIS or the IMC’s job. Thank you. [Applause.]

Ms S C VOS: Thank you, colleagues. This Vote is always interesting. It acknowledges the power of communication, especially a communication service that knows what it is doing, and it actually does what it is supposed to do.

The more professional the Government Communication and Information System (GCIS) becomes, year after year, the more it accomplishes its outreach in terms of its mandate year after year. The more it polishes its ability to produce slick imbizo in hotly contested provinces just prior to elections, to enable majority party politicians to meet the people and trumpet government score cards, the more nervous opposition parties become. Let us be fair, that is to be expected.

There is a natural tension between the government communication services and opposition parties all around the world. South Africa is no exception, and the IFP has repeatedly acknowledged this. Of course, many in the opposition do not like the seamless manner in which the GCIS manages to get it just right for majority party government leadership to sing their own praises just prior to elections. We will always complain about this.

However, the truth is that the GCIS has a complex mandate, and the fact of the matter is that its number one priority is to ensure that the voice of government is heard. That is its job. Defining the fine line between government communications and majority party, political propaganda will be repeatedly contested and rightly so, in all democracies. It is the job of the opposition in democracies such as ours, as the IFP sees it, to repeatedly insist that government communicators reinforce the concept of multiparty democracy in all that they do, and promote the vital role of the opposition in multiparty democracies.

It would appear that the GCIS is indeed building a comprehensive communication service on behalf of government to achieve its mandate. Much of its work seems to be focused on public information needs and government communication needs. The credit for much of the multimedia sophisticated inception of the growing body of excellent work produced by the GCIS, must be given to its outgoing leader, Mr Joel Netshitenzhe, whom we must thank and also wish him well in his new role in government service. [Applause.]

I have repeatedly said, in this House, that the GCIS is blessed with the staff of consummate professionals. The work on display in the GCIS centre in this Parliament is testimony to the skills of the persons employed. The yearbook itself is a mammoth task.

I have not been given the time to properly give a précis, on behalf of the IFP, of the multipurpose community centre programme, the policy and research programme of the GCIS, government publications, media liaison, provincial and local liaison, the Media Development and Diversity Agency (MDDA) and so on.

Special mention must be made, however, as is already been done, about the work being done by our international marketing team. To quote Oprah: “You go, girl!” Yvonne Johnston and her team are doing a fantastic job when one analyses their mandate with their minuscule budget in international terms. We should all be very proud of their work.

The funding of some programmes has been decreased, whereas that of other programmes has been increased, particularly international marketing, which must be welcomed. We also approve the additional funding that is being given to the promotion of public access to the Information Act. We are looking forward to getting detailed information in this regard as soon as possible.

The IFP supports this budget. Thank you. [Applause.]

Mr K M KHUMALO: Thank you, Chairperson. Members of Parliament, distinguished guests, ladies and gentlemen, comrades and friends, I just need to acknowledge, amongst us here, the students of journalism from Tshwane University of Technology, who yesterday informed me that some of them wish that, after completing their studies, they could get an opportunity to tell a South African story. They also would like to have an opportunity to, like many other international media, report more positive things about South Africa. I just want to welcome them for being here with us today. [Applause.] It is unfortunate that very often there is the perception that the GCIS is the propaganda arm of the ANC. That is not correct. In 1982, when the South African Defence Force attacked the bases of the ANC in Gaborone, Matola and Maseru, all of us were glued to the radios because we could tune in to what was then called Radio Freedom or “the voice of the people”.

By then the ANC used to have newsletters, like Umsebenzi, and many of them that were quite good like the ones written by the Communist Party and the SA Congress of Trade Unions. Today it is not occupying the same role. It is important to note that as the ANC we have always believed that it would be quite correct for one to have a proper information structure and strategy of government and any other political party will have to do that in their own way. I think that is the message that some of our colleagues should start to understand and move from that, as it is very important.

The Budget Vote of the GCIS today encompasses the role, programmes and projects that are envisaged to inform the masses of our people in the entire Republic of South Africa, and through the continent and everybody about the work that we do as a country and as government.

This year we celebrate a number of important anniversaries as government and also as a country. We will remember and commit ourselves to those roles that were played by many who were not as fortunate as others and me, to be sitting at these desks today as Members of Parliament.

A week ago, on 8 May 2006, we celebrated the 10th anniversary of the Constitution of South Africa. It was a very important day for most of us, but we should also keep in mind that many people have suffered and many have died so that today we are able to celebrate that important piece of work that we did on 8 May. It is also in their memory that we should never forget our mandate of a better life for all where we live, and freedom in our lifetime.

We will also celebrate the 30th anniversary of the June 16 protests this year, in order to acknowledge the role played by the young people of our country. In terms of the GCIS programme we realise that there is a commitment of government this year to, firstly, set up 100 youth advisory centres countrywide. Secondly, to enrol 10 000 young people in the National Youth Service Programme. Thirdly, we will also be able to enrol 5 000 young people to act as volunteers to mentor vulnerable children.

We are also starting a campaign to intensify the link-up, as we said, in terms of the 60 000 unemployed graduates with companies that have the potential to employ them. These are the programmes that we believe will be able to assist many young unemployed people who are out there who could not be put in the mainstream of the economy.

As part of our celebrations this year, we will also celebrate the 50th anniversary of the women’s march to the Union Buildings. In terms of the programme as we envisage it, we will recommit ourselves to nonsexism, to affirmative action, to empowerment of women and all gender focal points. The GCIS has, now currently, a responsibility to promote and profile the 16 Days of Activism of No Violence Against Women and Children.

We must continue to raise the awareness amongst the people with lower living standard measures from one until five and all of the categories, because there is a need to change behavioural patterns. It is very sad that a terrible thing happened in Mamelodi three or four weeks ago, where three young girls were kidnapped, raped and killed. We need to make sure that these types of occurrences do not happen again.

It is also sad to note that in Dobsonville a similar crime happened where a young girl was kidnapped, raped and killed. It is upon us here in Parliament, the public out there, the police and everybody, to make sure and to ensure that these 16 Days of Activism start from today. Actually, each and every day must be a day of activism in terms of no violence against women and children.

There are a lot of programmes that have been outlined by the GCIS this year. Key amongst them is the issue of the celebration of the Rivonia Treason Trial. The others are the 100th anniversary of Mahatma Ghandi’s Satyagraha programme and the 60th anniversary of the mineworkers’ strike.

In terms of the programmes that we support as the ANC, and in terms of believing in the way that we are moving, we note key campaigns that the GCIS must continue, and we support that. One is the people’s contract for a more efficient people-centred government. Here we refer to the Batho Pele programme, the community development workers that we have just appointed, and the multipurpose community centres (MPCCs).

I must just give you three examples of the good community centres that we have in the country. In Eleventh Avenue of the Alexander Township, there is a very big complex that offers all that you would expect in any MPCC. I think that type of centre serves as an example of the type of MPCC we need to have in South Africa. That MPCC is able to assist in terms of ID documents, social grants, birth certificates and many other things that are expected in any MPCC.

It is also just important for me to note to Parliament and the general public today that in a small area called Mauteng in the North West province, there is an MPCC in Madikwe region, which is able to afford the community and everybody in assisting them with anything that they need. That is the first programme that we envisage as the Members of Parliament in the portfolio committee as we move forward to support this programme.

The second programme is the people’s contract for Africa’s renewal in the better world. It is important for the GCIS to always continue to project the work that we do as government, as a state, in terms of Nepad and in terms of the African Union.

The type of role that we are playing in all the countries that have intense violence and many forms of wars that have been taking place in Burundi, Rwanda, and many of them. We therefore support this work that needs to be done in projecting the role that we play there.

Concerning the issue of the SADC countries, we also believe that it will be important for us to keep on highlighting the role that we play in that area. The International Marketing Campaign must continue. It is very sad that sometimes if you go overseas you find that some people talk badly about South Africa, especially the South Africans. The IMC’s role is to get the Proudly South African campaign to keep on projecting South Africa as a country that has a confluence of encouraging possibilities.

This is a good programme for economic development and political stability, in terms of certain investment areas that could provide South Africa and many of the African countries with an opportunity to compete internationally.

The third programme that we also believe should continue, that is also contained in 2004/2005 programmes and also currently, is the people’s contract for growth and development. We are referring to aspects such as the Accelerated and Shared Growth Initiative for South Africa (Asgisa) and learnership programmes that provide for young people to be trained and then be absorbed into the mainstream economy.

The third one is the growth and development programme, the Expanded Public Works Programme, that still continues, and this is reflected. The GCIS is able to get this information from various departments, and disseminate that to the community so that everybody can get involved. In terms of that, we also talk about black economic empowerment programmes. We believe that if we, as GCIS, could not provide information, it would be difficult for people to know exactly what the government does.

Concerning the last programme, in terms of what we envisage as a programme of the GCIS, is the people’s contract for a safer and more secure South Africa. The statistics prove that a lot has been done in terms of crime prevention, or reduction of crime. Of course the DA could complain about that, but it is quite clear what it is that we have been doing as a country. Crime reduction is an important aspect that we should deal with, especially with regard to those crimes committed against women and children, because it has been quite clear that in the past weeks and years crime has been on the increase. I am therefore happy that the government is doing a lot to improve that.

The last issue is that of the implementation of the TRC recommendation. We are quite aware today that some cases are being pursued against people who had committed crimes but who have not yet been charged. We therefore support the programme that the GCIS is dealing with.

Lastly, the review of the criminal justice system. These are the important aspects that form what we call the issue of the people’s contract for a safe and secure South Africa. As the ANC we believe that with the celebrations of many of these forthcoming activities and also the bringing together of programmes of government and the programme of action that government wants us to undertake, we will be able to build a safer, and a good society.

It is important for Members of Parliament, the general public, the officials and everybody, to understand the government’s programme of action. It is easy for those who say that they do not, but I just need to outline it today and tomorrow, so that all of us will understand it. Firstly, Asgisa; secondly, the strengthening of local government; thirdly, the speeding up of the expansion of social services; fourthly, youth development; fifthly, the criminal justice system, a better world, and lastly, the 2010 World Cup. I am sure that all of us will support these programmes. Thank you. [Applause.]

Mr H B CUPIDO: Chairperson, the 2006-07 GCIS budget makes adequate provision for the Government Communication and Information System to fulfil its mandate to create a country of informed citizens who are provided with communication structures that ensure meaningful participation of all communities.

The roll-out of multipurpose communication centres was intended to play a crucial role in the establishment of communication channels. The ACDP does not, however, see sufficient evidence that this programme has achieved its desired objectives. Large sections of our communities are still not aware of the existence and purpose of these centres, and this lack of awareness needs to be addressed in order for the programme to have the intended impact.

The multipurpose community centres are aimed at improving access to information and is critical to the attempts by the GCIS to expand the infrastructure in South Africa, so that all South Africans may receive assistance in improving their lives. The 2006-07 budget makes adequate provision for the enhancement of the function of this programme. Given the fact that 100 multipurpose community centres are expected to be in operation soon, the ACDP is confident …

The HOUSE CHAIRPERSON (Mr K O Bapela): Order! I’m afraid your time has expired, hon member.

Mr H B CUPIDO: We support the Budget Vote.

Dr P W A MULDER: Mr Chairman, in the 1940s and 1950s there was a debate in most democracies about whether government may use taxpayers’ money to communicate with its citizens.

Die logiese argument was dat ’n regerende party ’n voordeel kry deurdat hy sy beleid kan propageer. Daardie debat is verby; niemand argumenteer meer dat ’n regering moet kommunikeer nie. Hierdie regering en die departement doen goed met wat hulle doen. Ek dink hulle is veral goed met hulle tale, waarvoor hulle sensitief is, en ek wil dit komplimenteer. Dit beteken egter nie dat ons nie deurlopend sensitief moet bly vir wanneer ons die grens van propaganda oorsteek nie.

Ek wil in my kort tyd net vra vir riglyne van die departement oor advertensies. Ek ervaar dat ons op die oomblik baie geld mors met swak advertensies van verskillende departemente – advertensies wat volblaaie beslaan en wat niemand lees nie. Ek sou graag navorsing wou sien oor wie dit lees.

Wat radio-advertensies betref, ek het verlede week na een geluister oor die taxibedryf. Dis goed, dis nodig, dis inligting, maar die datum is verouderd. Dit lui dat iets voor 30 April gedoen moet word, maar die advertensies word op 12 Mei uitgesaai! Dis belastingbetalers se geld wat gemors word. Ek vra dus dat ons riglyne neerlê … (Translation of Afrikaans paragraphs follows.)

[The logical argument was that a ruling party gains an advantage in that it is able to propogate its policy. That debate is something of the past; it is no longer disputed by anyone that a government should communicate. This government and the department are doing well in what they are doing. I think that they are doing particularly well with their languages, to which they are sensitive, and I want to compliment them on this. This, however, does not imply that we must not be continuously sensitive to whether we are overstepping the boundary of propaganda.

In my limited time I would like to ask for guidelines from the department where advertisements are concerned. I feel that we are wasting a lot of money with poor advertisements from various departments – full-page advertisements that are read by nobody. I would have liked to see some research as to who reads them. With regard to radio advertisements, I listened to one about the taxi industry last week. This is good, this is necessary, this is information, but it is outdated. It stated that something must happen before 30 April, but the advertisements were broadcast on 12 May! This is taxpayers’ money that is being wasted. I therefore request that we set out guidelines …] The HOUSE CHAIRPERSON (Mr K O Bapela): Order!

Dr P W A MULDER: … om nie geld te mors nie, riglyne oor hoe ’n mens die geld effektief kan aanwend … [… in order not to waste money, guidelines on how one can spend the money effectively …]

The HOUSE CHAIRPERSON (Mr K O Bapela): Your time has expired.

Dr P W A MULDER: … en uiteindelik om ’n onderskeid te tref tussen wat regeringsinligting en wat propaganda is. [… and ultimately, in order to draw a distinction between what is government information and what is propaganda.]

The HOUSE CHAIRPERSON (Mr K O Bapela): Your time has expired, thank you!

Dr P W A MULDER: Meneer, gewoonlik kry ek kans om my sin klaar te maak. [Sir, usually I get a chance to complete my sentence.]

The HOUSE CHAIRPERSON (Mr K O Bapela): Sorry!

Mr I S MFUNDISI: Chairperson and hon members, South Africa is a country of vast contrasts. In places it appears to be a country of wealth and in others one of grinding poverty. Hence, the debate over the two nations and the first and the second economies.

In the same way people who live in these circumstances have different perceptions of government services. The GCIS appears to be a catalyst to give a clear picture to all.

The idea to ensure that South Africans have access to information is realised in that the number of MPCCs is growing. These one-stop government service facilities bring the far-off world of information to those who cannot afford personal computers. It looks like the 120 centres aimed for by 2007 are within reason. This will be more so if the chambers of commerce and industry in South Africa can provide the necessary funding.

The best approach of late is the government statements that are posted online. Those who have access to them know what each Minister is doing when and where. In some cases even synopses of their addresses are posted. The UCDP supports the Budget Vote. [Time expired.]

Mr R D PIETERSE: Voorsitter … [Chairperson …]

Mr T D LEE: [Inaudible.]

Mr R D PIETERSE: Donald, wag eers, wag eers. Ek wil eers praat oor mej Smuts. [Donald, wait, wait a minute. I first want to talk about Miss Smuts.]

You know it’s very strange that the hon Smuts could stand here at the podium and not speak the truth. [Interjections.] Wait, I’m coming to you!

When Sentech made its presentation they stated very clearly that they hadn’t spoken to anybody but to us as a committee first. To try and give the impression that they’d gone to the Minister, the department or whoever, and nobody would listen to them, I think, is not correct. And it’s not fair.

Ms M SMUTS: [Inaudible.]

Mr R D PIETERSE: No, wait, you’ve had your chance. It is not correct. I want Ms Smuts to grow up and face the truth. [Interjections.]

Haai, bly jy stil!

Daar is ook die kwessie van kragonderbrekings. Kom ek vat die ander ene. Kom, mnr Doman, kom ons kyk na die kragonderbrekings. Wat sê ons vir die mense, wat ’n baie interessante waarneming doen. Voor die plaaslike verkiesing was daar natuurlik een kragonderbreking ná die ander. Noudat die DA, met hulle velle aan die draad, in beheer is, is daar geen kragonderbrekings nie.

Dis stories, maar is dit nie interessant dat, noudat daar ’n ander sogenaamde regering aan die bewind is, daar nie meer kragonderbrekings is nie? Dit laat ’n mens dink, nè? Ek dink nie ’n mens moet hier staan en met stories kom nie. Orraait, word groot! [Tussenwerpsels.] Wat ons miskien moet doen, is om me Smuts, me Zille en Donald Lee nie na die Wêreldbeker- sokkertoernooi te nooi nie – hulle kan TV kyk! [Tussenwerpsels.]

Langs elke man is ’n beter vrou, en ons het al gesien wanneer ’n man goeie werk doen, of hy nou lid van die Parlement is en of hy President is, is daar ’n beter vrou langs hom. [Applous.]

Beide oudpresident Mandela en president Mbeki het in al hulle staatsredes die kwaliteit van ons vroue bevestig. Hetsy hulle lede van die Kabinet is, hetsy hulle Speaker of Adjunkspeaker is, waar ’n mens ook al ’n vrou in ’n posisie van verantwoordelikheid het, lewer hulle elke keer die beste van enigeen in soortgelyke posisies.

Selfs ons gewone vroue, veral die plattelanders, doen uitstekende werk. Die vroue in die fabrieke, dié wat vir ons onderskeie munisipaliteite werk, ons gemeenskapsontwikkelingswerkers, die vroulike hoofde van die huis, ensovoorts, is heldinne sonder weerga. Hoe gebruik die regering hierdie mense elke dag en wat doen hulle met die regeringskommunikasiefasiliteit om aan die breër gemeenskap die versekering te gee dat hoe gister ook al was, vandag beter sal wees? As ons en die regering saamwerk, met hierdie vroue steeds aan die voorpunt, en voortgaan om te verbeter in wat ons elke dag doen, sal môre definitief beter wees as vandag. Hierdie regeringskommunikasiefasiliteit, beter bekend as die GCIS, moet ’n goeie begroting kry sodat die uitstekende werk wat hierdie mense sowel as ons regering doen en wil doen, oorgedra kan word aan ons breër gemeenskappe.

Dit dan gesê, wil ek graag byvoeg dat terwyl die veeldoelige gemeenskapsentrums baie, baie goeie diens lewer, ons nog baie meer van hulle nodig het. Te veel van ons mense is regstreeks uitgesluit of woon te ver van hierdie fasiliteite af.

Kom ek noem net hier as voorbeeld die Hessekwa-munisipaliteit. Van die mense in hierdie munisipaliteit is op Riversdale gesetel. Vir van ons mense wat byvoorbeeld van Gouritsmond af moet kom, is dit 80 km se ry. Dit kos hulle R200 uit hulle sak om by die fasiliteite te kom om hulle toelaes te kry en so meer, en dit begin ’n bietjie moeilik raak.

Hierdie gebied waarvan ek nou gepraat het, is 9 500 km2 groot, en daarom is die beginsel van een fasiliteit per munisipaliteit nie altyd reg nie. Ek verstaan almal het dit nodig, maar een per munisipaliteit kan nie altyd werk nie, want die grondgebied wat die munisipaliteit moet bedien, is te groot. Daarom moet ons kyk, nadat elke munisipaliteit een gekry het, hoe ons kan seker maak sommige kry meer as een.

Dan het ons natuurlik tekortkomings in hierdie gemeenskapsentrums. Departemente soos Binnelandse Sake en Maatskaplike Ontwikkeling wil net nie hulle intrek neem nie. Hulle wil nie intrek nie. Daar is fasiliteite, maar hulle kom nie. Met ander woorde, ons mense kan nie aansoek doen om dokumente nie, want Binnelandse Sake is nie daar nie. Ek is egter doodseker, omdat daar reeds van hierdie twee departemente ondernemings gegee is, dat hulle intrek binnekort ’n werklikheid sal word.

Die Internasionale Bemarkingsraad doen absoluut wonderlike werk, veral oorsee. Daarom is dit ewe belangrik dat ons hier in Suid-Afrika ook ons deel doen sodat wie ook al ons om watter rede ook al besoek, moet sê Suid- Afrika is werklik lewend met moontlikhede. Hetsy in Brittanje, Australië, die VSA of waar ook al, die goeie werk van die Internasionale Bemarkingsraad is legio. Persoonlik glo ek die span mense het ’n groter begroting nodig as wat ons hulle nou gee, maar ons verstaan ook dat ons mededingende prioriteite het.

Aan Yvonne en haar span wil ek net sê dat ek hulle beny en dat hulle nie nou moet ophou met die harde werk nie. Ons waardeer alles wat hulle doen. Ek hoop agb lede neem kennis dat wat ek nou gesê het, ’n illustrasie is van wat ek vroeër genoem het oor die kwaliteit van vroue. (Translation of Afrikaans paragraphs follows.) [Hey you, keep quiet!

There is also the question of power cuts. Let me take the other one. Come, Mr Doman, let us look at the power cuts. What do we say to the people, who make a very interesting observation? Before the local election there was, of course, one power cut after another. Now that the DA, with their skins on the wire, are in control, there are no power cuts.

These are stories, but is it not interesting that, now that another so- called government is in power, there are no more power cuts? That is food for thought, not so? I do not think one should stand here and tell stories. All right, grow up! [Interjections.] Perhaps what we should do is not to invite Ms Smuts, Ms Zille and Donald Lee to the World Cup soccer tournament – they can watch it on TV! [Interjections.]

At the side of every man is a better woman, and we have already seen that when a man is doing good work, whether he is a member of Parliament or the President, there is a better woman at his side. [Applause.]

Both former President Mandela and President Mbeki have confirmed the quality of our women in all their state of the nation addresses. Whether they are members of the Cabinet, or whether they are the Speaker or the Deputy Speaker, wherever one has a woman in a position of responsibility, they deliver the best results every time compared with anyone in similar positions.

Even our ordinary women, especially those in rural areas, do excellent work. The women in the factories, those who work for our various municipalities, our community development workers, the female heads of homes, etc, are heroines beyond compare. How does the government use these people every day and what do they do with the government communication facility to assure the general community that whatever yesterday was like, today will be better?

If we and the government co-operate, with these women continuing to be at the forefront, and if we continue to improve on what we do every day, tomorrow will definitely be better than today. This government communication facility, better known as the GCIS, must receive a good budget so that the excellent work which these people and our government do and want to do can be transferred to our broad communities.

Having said that, I would like to add that whereas the multipurpose community centres deliver very, very good service, we still need a lot more of them. Too many of our people are directly excluded or live very far from these facilities.

Let me just mention here, as an example, the Hessekwa Municipality. Some of the people in this municipality are located in Riversdale. Our people who, for example, have to come from Gouritsmond, have to travel 80 km to get there. It costs them R200 out of their own pockets to reach the facilities to receive their grants and so on, and it is getting a little difficult.

This area of which I am now talking is 9 500 km² in extent, and therefore the principle of one facility per municipality is not always right. I realise that everyone needs it, but one per municipality cannot always work, because the territory which the municipality must serve is too large. Therefore we must see, after every municipality has received one, how we can make certain that some receive more than one.

Then of course we have deficiencies in these community centres. Departments such as Home Affairs and Social Development simply do not want to move in. They do not want to move in. There are facilities, but they do not come. In other words, our people cannot apply for documents, because Home Affairs is not there. However, I am quite sure, because these two departments have already given undertakings, that they will soon move in.

The International Marketing Board does absolutely wonderful work, especially overseas. For that reason it is equally important that we here in South Africa also make our contribution so that whoever visits us for whatever reason must say that South Africa is truly alive with opportunities. Whether in Britain, Australia, the USA or wherever, the good work of the International Marketing Board is legion. Personally I believe that the team of people need a larger budget than we are giving them now, but we also understand that we have competitive priorities.

To Yvonne and her team I just want to say that I envy them and that they must not stop the good work that they are doing. We appreciate everything they do. I hope that hon members are noting that what I have said now is an illustration of what I mentioned earlier about the quality of our women.]

The Media Development and Diversity Agency, the MDDA, with a very limited budget, needs to help develop community communications, be it print or electronic. I think they are doing great work under very trying conditions. We have not seen the transformation of community communications as we hoped for by now. Not enough community papers are being developed. Therefore we will see that national and normal mainstream papers still dominate. We need much more money and effort to change it. We need our respective communities to initiate the papers and approach the MDDA for assistance, particularly by training.

Ek wil ook ons onderskeie gemeenskapsradiostasies aanmoedig om by die Agentskap vir Media-ontwikkeling en Verskeidenheid, AMOV, aan te klop om hulp voordat dit te laat is en hulle dalk vou. As ons in die Parlement of die regering effektief wil kommunikeer met al ons gemeenskappe het ons radio sowel as koerante nodig.

Die regering se nuusblad, die Vukuzenzele, is ’n groot sukses, soos die Minister gesê het, en dis beskikbaar in al 11 amptelike tale sowel as Braille. Wanneer ons gemeenskappe met mekaar wil kommunikeer, het ons radiostasies, veral ons gemeenskapsradiostasies, nodig. Op die platteland het ons niks – ons het absoluut niks nie. Die gemeenskapsradiostasies is gesentreer rondom die stede soos Kaapstad, Johannesburg en so meer, en daarom moet ons toesien dat ons die gemeenskapsradiostasies veral ook na die platteland neem.

As hulle met die regering wil kommunikeer, het hulle dit nodig. Die Regeringskommunikasie- en Inligtingstelsel (RKIS), met die hulp van die AMOV, is hierdie brugbouer tussen die gemeenskappe en die regering. Wanneer ek hierdie begroting aan u voorhou vir aanvaarding vra ek ook of dit die vrou, die jong vrou, die enkelma, die vroulike broodwinner, die plattelandse vrou, die gestremde vrou, die jeug, ensovoorts kan help.

Daarop antwoord ek sterk ja, want die RKIS as brugbouers kommunikeer en sê ons leef in die tyd van hoop. Al was gister hóé goed, is vandag nog beter, en soos dag die nag volg, sal môre sekerlik beter wees as vandag. Suid- Afrika is lewend met moontlikhede.

Laastens wil ek vir minister Pahad en sy hoof uitvoerende beampte, mnr Joel Netshitenzhe, baie dankie sê vir hulle werk. Ek dank u en steun hierdie begroting van die RKIS. Baie dankie. (Translation of Afrikaans paragraphs follows.)

[I also want to encourage our various community radio stations to approach the Media Development and Diversity Agency, the MDDA, for help before it is too late and they might collapse. If we in Parliament or the government want to communicate effectively with all our communities we need the radio as well as newspapers.

The government’s newspaper, the Vukuzenzele, is a big success, as our Minister has said, and it is available in all 11 official languages as well as in Braille. When our communities want to communicate with one another, we need radio stations, especially our community radio stations. In the rural areas we have nothing – we have absolutely nothing. The community radio stations are centred around cities such as Cape Town, Johannesburg and so on, and we must therefore ensure that we take the community radio stations especially also to the rural areas.

If they want to communicate with the government they need it. The Government Communication and Information System (GCIS), with the aid of the MDDA, is this bridge builder between the communities and the government. When I present this budget to you for acceptance I also ask whether it will be able help the woman, the young woman, the single mother, the female breadwinner, the rural woman, the disabled woman, the youth etc.

To that my answer is a definite yes, because the GCIS as bridge builders communicate and say that we are living in the age of hope. Even if yesterday was good, today is still better, and as day follows night, tomorrow will surely be better than today. South Africa is alive with opportunities.

Lastly I want to thank Minister Pahad and his chief executive officer, Mr Joel Netshitenzhe, for their work. I thank you and support this budget of the GCIS. Thank you very much.]

The MINISTER IN THE PRESIDENCY: Chairperson, let me first of all thank all the participants in this debate, and all the people who serve on the Portfolio Committee on Communications for their co-operation, and for all the words that have been said here today.

Let me announce a piece of good news, and the other piece, which has already been mentioned, is not such good news. Yesterday, a young film director by the name of Tristan Holmes received a letter, which said:

Dear Tristan,

Congratulations. This letter is to inform you that your film Elalini has been selected by the academy membership as the winning film in the 33rd Annual Student Academy Awards Honorary Foreign Film category.

That is the equivalent, in terms of student films, of an Oscar, and I think that is a wonderful demonstration. [Applause.]

Mrs Susan Vos jumped the gun – thanks Susan. This is the last budget of the Government Communication and Information System that Mr Joel Netshitenzhe will be directly concerned with. As soon as we have appointed a new head of the GCIS, Mr Netshitenzhe will leave the GCIS and take up, full time, the functions in the Policy Co-ordination and Advisory Services in the Presidency.

I want to take this opportunity again to thank Mr Netshitenzhe, not only for the work he has done, but I think that we need to put it on record that if it wasn’t for his sharp mind, dedication and his commitment, I don’t believe that the GCIS would have had the success that it has had. Thank you very much, Mr Netshitenzhe. [Applause.]

I would also like to say that in the course of our work, we’ve had valuable interactions between ourselves, Mozambique and Tanzania. Mr Netshitenzhe and I have had the privilege that no other Minister, and not even the Deputy President, has had, which was to address the full cabinet of Mozambique on government communication, and the full cabinet of Tanzania, the last time they had a whole lekgotla of all their Ministers, Deputy Ministers, permanent secretaries. The only non-Tanzanians invited were us, to address them on government communications. Those official interactions will continue.

Again, I am not used to thanking the DA, but let me thank them for once more asking Dene Smuts to participate in this debate. I am always happy when she participates. [Interjections.] No. Events, my dear Madam, events.

I don’t think we overreacted to what Sentech had said. What we were just placing on record was that, when speaking about these issues at a point when we are reaching very sensitive times, with respect to 2010, we need to communicate in a way that doesn’t unnecessarily give the wrong impression.

I must just add, to the members here, that the secretary-general of the Fédération Internationale de Football Association, FIFA, who comes and sits at meetings of the board of the local organising committee is on record as saying that they are very, very happy with South Africa, and that, in almost every single case, we are ahead of our time in terms of preparations for 2010. President Blatter is on record as saying that in the timeframes concerned, they have been able to raise more money in terms of sponsorship for South Africa, 2010, than what they had for Germany, 2006. So, I think we are doing rather well. [Applause.] What I think should happen is that of course Parliament must make a decision about private members’ Bills, because it is a private member’s Bill and not an executive responsibility. I don’t think we need a private member’s Bill. What I think we need, Ms Smuts, is when Harold Macmillan said, ``Events, dear boy, events’’, what he was actually talking about was that you need to have a concrete approach to concrete questions.

What I think should happen is this: We have discussed this matter with the DA on a number of occasions, and we have asked them, over and over again, to come with concrete information which would demonstrate that the GCIS has gone beyond its bounds. Then Parliament can address this question, because Parliament has the power to both evaluate and monitor the work of government departments.

I think that what should perhaps happen is to have concrete discussions, where you will demonstrate that the GCIS has gone beyond the bounds of the guidelines that it set itself during periods of election time. Then, quite clearly, we’d be very willing to listen.

I don’t think it helps us, if we want to use this merely as a propaganda stick, because it is not her fault. We will continue to do what we are doing, because we don’t think we’re doing anything wrong. If you think we are doing anything wrong, please come with concrete information.

So, it’s a sanctions-busting thing. I know that given the political and ideological bent of the DA, they think sanctions help, except when we wanted sanctions against apartheid South Africa, and then they were against sanctions.

I would like to come to what Dr Mulder said, in terms of us needing to discuss the guidelines in terms of government ad spending, and government advertising. I think he has raised some critical issues. I think what should happen - I agree with you, you didn’t have enough time, and I really wanted to listen some more – is that perhaps again the portfolio committee may want to discuss this issue.

To the extent that guidelines may not exist - we think they do – or to the extent that you think they don’t exist, why does the portfolio committee not engage in a discussion around these issues and then have an interaction with the GCIS, and then with the Minister, so that we can together try to find the kind of common ground that I think would be necessary so that it doesn’t become a party political debate? Quite clearly, we need to discuss this. To the extent that there may be wastage in government ad spending, surely it’s in the interests of government not to waste its money.

I would issue an invitation, at least from my side, to say that I would be quite happy, together with the GCIS, to engage in that kind of discussion in a positive way so that we can address whatever shortcomings there may be with respect to the monies that government is spending in terms of advertising or marketing, whatever it is that we have to do, and that we do do as a government.

To the ANC speakers, thank you very much. To Mr Pieterse, I think he is right. There are some shortcomings in multipurpose community centres. I did indicate that we ourselves are doing research in over 60 MPCCs to try to identify what the weaknesses are: Are there MPCCs where government departments are going irregularly? Are we offering the kinds of services to our people that we say we want in terms of Batho Pele? So, we are doing this research so that we can be better informed about what is actually happening in the MPCCs, and not act on the basis of anecdotal evidence.

Once that research is completed, obviously, the GCIS will come back to the portfolio committee and engage with the portfolio committee around the questions of what we need to do to improve the effectiveness and efficiency of the MPCCs, because they are designed to offer services to our people, especially those of our people who live in areas where it’s difficult to get some of that information.

The last point that I want to address relates to Ms Dene Smuts again. While the former Prime Minister of Britain said, ``Events, dear boy, events’’, events, my dear Madam, events have quite clearly demonstrated who enjoys the overwhelming support of the majority of the people of South Africa. Thank you very much. [Applause.]

Debate concluded.

CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE ON AUDITOR-GENERAL


                         (Draft Resolution)

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move without notice:

That the House ratifies the decision of the Speaker, in terms of Rule 214, to establish an ad hoc committee on the appointment of the Auditor-General as announced in the ATC of 18 April 2006.

Agreed to.

                         APPROPRIATION BILL

Debate on Vote No 17 – Labour:

The MINISTER OF LABOUR: Chairperson, hon Members of Parliament, fellow South Africans, comrades and friends. I am greeted by … You are a Member of Parliament. Have you forgotten? You are probably not my friend. At the twilight of the Middle Ages, Francis Bacon declared, “Knowledge is power”. Little did he know that these seemingly innocent words would unleash a revolution that liberated humankind from the darkness of the Middle Ages. These words shook no less than some of the teachings of the man who - three centuries before Christ was born - had accumulated so much information and knowledge that he is now recognised as the father of almost every field of investigation or study we follow today, namely Aristotle.

As we look at the past years and prepare ourselves for years that lie ahead, we cannot but be inspired by the manner in which our foremothers and fathers - sustained by the power of knowledge - managed to build the future we enjoy today, based on the past they endured then.

Imbongi yesizwe, okaMqhayi, uthi: Phindela phesheya, nto kaDube. Phindela phesheya, Mafukuzela. Nkamel’ ethwel’ iinzingo zeAfrika, ithwal’ iingxakeko neembandezelo zayo. Ikhe yathwal’ ezinye yaziphumeza. Yathwal’ ezinye, ezinye kwanezinye. Thole lenkunzi yaseMpumalanga, abath’ukuyibiza nguMafukuzela.

Phindela phesheya mfo wakwaSenzangakhona. Ndibev’ apha, isimbonono, bathi ‘kwathi, kwathi, iAfrika mayibuye’.” (Translation of isiXhosa paragraphs follows.) [The praise singer of the nation, the son of Mqhayi, says: Go back overseas, son of Dube. Go back overseas, Mafukuzela. The camel that carries the plight of Africa, that carries its difficulties and sufferings. It once carried some and overcame. It carried more, and more, and more. The powerful bull of Mpumalanga, whom they call Mafukuzela.

Go back overseas, son of Senzangakhona. I heard them continuously crying, saying, ”What, what, Africa should come back”.]

Mghayi dedicated this poem to Dr John Langalibalele Dube, the first President of the ANC. One of those who remained optimistic that beyond the dark days of colonial oppression there is a better life for South Africans. It is on the shoulders of the giants of the calibre of Mafukuzela, Sol T Plaatje and others that today we are able to say we are a free people. We owe to their memory that we too make our contribution in this era of knowledge society.

Never before had knowledge been as indispensable as it is today. Allow me to look back at the year that just ended and share with this House some of the exciting moments we experienced and challenges we encountered. And of course the hon members will also recognise that I am a bit slimmer than I was last year.

I sought knowledge from those who do not acquire it from books and websites. I undertook a campaign of izimbizo and visited eight provinces where I met the most amazing people of our country who through our programmes saw their quality of life improve. One such project in which young people are involved, is the Paprika project in the Free State, where a disused mine land was used to produce various fresh produce for local and export markets.

This has proved to be a great source of information on how the government services are impacting on the lives of the people. I am pleased to say that some of those people we are working together with in some of the projects we sponsor, have honoured this day by their presence here today. Somebody was saying here I have rented a crowd.

These are fellow South Africans who benefited from the money you have given to the Department of Labour for skills training. Allow me to mention some of these projects: In partnership with Further Education and Training and Higher Education Institutions, we initiated Thuthuka, a project facilitated by Fasset Seta in the finance and accounting sector and the South African Institute of Chartered Accountants.

This project aims to accelerate the rate of transformation in the sector by increasing the number of black men and women chartered accountants. The project is currently being implemented in the Eastern Cape, KwaZulu-Natal and the Limpopo provinces.

Through these projects, our skills interventions have assisted and continue to assist. One hundred and fifty-two BComm undergraduates from the University of Fort Hare - 40 of whom have graduated this year - are pursuing a career as chartered accountants. Nineteen thousands two hundred students in the Eastern Cape schools received extra tuition in Maths, Accounting and English to help prepare them for entry into university programmes regarding financial accounting and other financial management fields. Once a teacher always a teacher.

Another 19 000 learners follow the same path in the provinces of KwaZulu–Natal and Limpopo. Two hundred and nine undergraduate B Comm students at the University of Limpopo are being prepared for the chartered accountant career through extra intervention in partnership with the University of Johannesburg, the former Rand Afrikaans University.

Up to 7 200 educators will receive capacity-building to improve their skills in the area of Maths and Accounting, and I am happy that I am saying that in the presence of the Minister of Education. In my view, this project is indeed an example of fruitful partnership in action.

The significance of this project is that we are dealing with one of those areas we have identified as scare skills. We have also deliberately prioritised the children of these predominantly rural and poor provinces. In so doing we are reversing the stereotype that children from the rural areas can only do subjects other than Commerce, Science and Technology.

As part of our pursuing the national skills development strategy and Jipsa goals, we have initiated the process to identify scare skills needed in the course of the implementation of Asgisa. This process entails the development of a database that will include a number of jobs to be created and scarce skills critical required.

We are also pleased with the results of yet another special project, namely the Uitenhage Dispatch Development Initiative Regional Skills Pool funded by the National Skills Fund. And I am happy that uGomomo was able to indicate to him that some of these people from Uitenhage are in the House today. He did of course say to me that he met them; I knew you would.

Sisinyanya uGomomo. [Gomomo is an ancestor.]

In this project we trained 1 000 unemployed youths in basic automotive and engineering skills over a period of two years. Nine hundred and thirty-four learners completed their training and Volkswagen South Africa (VW-SA) employed 850 of them. Some of those young people are here today and are sitting in the gallery. I don’t know exactly where they are sitting … there they are. And I want the DA to see them. [Applause.] Lest you get one vote from them, just in case. I want to acknowledge the outstanding and full support of VW SA in this project. I know that they are represented here by Moss; I don’t know where Moss is … and there he is. The DA must look carefully at Moss. In addition, we will review this and increase our course fees to accommodate provider courses in line with inflation. We will also, for the first time, introduce a trainee daily allowance to cater for the travel and meal costs in these programmes.

These are some of the things I have picked up in Izimbizo in interacting with some of our private training providers and their complaints; that certainly means that we listened to what they were saying. My department, in partnership with the department in the Western Cape, also embarked on an ambitious project called Building Maintenance Preventative Pilot Project in the Cape Metropole.

We spent an amount of R3 million on this project to develop the skills of 2 000 unemployed persons: 1 500 men in garden maintenance and another 500 men for general building maintenance. After six months of training all the trainees completed their training and all were placed. I also wanted to acknowledge the presence of some of these learners who are also sitting in the gallery. I can’t really recognise them. Could you stand so that you could be seen in the Parliament of the Republic of South Africa? [Applause.] I thank you very much.

In the past year we collated the results of the National Skills Development Service Phase 1, 2001-05.

Abazanga kuza kwenza indlamu, Ndabezitha. [Kwahlekwa.] [They did not come to perform a Zulu traditional dance, Ndabezitha.] [Laughter.]]

During this period we registered 170 926 learners into learnerships and apprenticeships. Of these, 109 674 were unemployed learners while 36 703 were apprentices contrary to the perception that apprenticeships are dead. They are alive, well, kicking and legal. Within 3 months after training a total of 71% of learners were placed either in income-generating projects, employment or further training.

If this trend can be sustained, we would contribute meaningfully to the reduction of unemployment and poverty. In 2005 we set a target to register at least 50 000 learners in the scarce skills field. We ended up with 116 425 learners registered. The Setas have heeded the government call to make Asgisa work, hence this overwhelming response.

One of the challenges we will have to address with our colleagues, especially in the National Treasury, is a matter relating to the disparity between tax allowances payable to employers who take on apprentices vis-à- vis the allowance paid when they take on learnerships. It is a matter that I will address with my colleagues, in fact, we have already started talking about it.

My visit to Indlela, a fortnight ago, brought home to me the importance of having to ensure that theoretical training always goes together with practical training. The theoretical training that our colleges continue to churn-out to artisans surely has to be reviewed, and that is why I am happy that the Minister of Education is on the ball on this matter.

Maybe you will understand later why I am so close to this area of the recapitalisation of Further Education and Training Colleges. Apprentices that register with Indlela to be assessed on their skills are failing dismally. Some end up being referred back for further training on both the practical and theoretical side, as they often know very little and I have discussed this with the Minister of Education. I wont tell you the secret that we were discussing around this matter, if this trend is left to continue at our FETs and private institutions.

I remember one training provider that we took to Indlela to be assessed. Training in private institutions failed dismally. That one had to be sent back to a Further Education and Training College. And yet he has already established a training institution. Our plans for Jipsa will be in trouble if we allow this trend to continue. It is of little wonder that we have so many fatalities of collapsing building structures, particularly in the Pretoria area.

It says a lot about the calibre of training that our artisans are receiving. That is why I instructed Indlela to explore the training of the trainers, as this will also ensure that we get FETs to at least utilise equipment that have been lying around in some of those colleges - unused and gathering dust for a very long time.

The turnaround strategy of the Unemployment Insurance Fund saw processing of claims and payments improve from a 70 days’ delay to five minutes. Payments are no longer done once per month, but daily. They are done electronically. UIF has a cost saving of about R16 million on bank charges, thanks to the ITC solution, Siyaya. Employment equity is online, enabling 320 companies to submit their equity reports online since September 2005.

The Lesedi solution is assisting us in inspection and enforcement and the labour centres are linked to head office through plasma screens. As a result, many of the problems of the former homeland republics, the TBVC states; their former statesmen and women are staging, some sitting at Pretoria Union buildings because they want UIF money of the 1980s. I am not so sure because in 1980 I was a teacher at Andile Primary School in Crossroads.

This allows dissemination of important information to our staff and members of the public who visit our offices countrywide and our 20 mobile units are electronically enabled and are present in the remote areas of the country. The above-mentioned factors have improved access to DOL services to such an extent that I always say we now have a crisis of success.

An amount of R16,4 million of the Reinvestment Fund has been generated as a saving to be utilised within the broad parameters of the contract.

While we are achieving a lot in the UIF, we acknowledge that there are problems in the Compensation Fund that require intervention, and we are attending to that. The problems include serious backlogs that were raised to me at imbizo in terms of claims that are delayed, calls that are not being returned and late payments of doctors. As a result, some of the pharmacists are refusing to attend to our beneficiaries. So, we will now be appointing a new commissioner. Some people may know that the previous commissioner, unfortunately, had to be relieved of her duties because of some of these problems that I have already highlighted.

The HIV/Aids threat is looming large in the labour market arena. It is costing business in terms of work hours lost and training and development of those who come in to replace the deceased. The cost incurred by families is sometimes hard to measure, but impact is devastating when the breadwinner dies and children have to fend for themselves at a tender age.

Prompted by this picture, my department commissioned an HIV prevalence study. This is aimed at measuring the magnitude of the problem and to enable us to develop a strategy to deal with the affected and infected staff members. We have deployed qualified wellness champions to play an active role in this regard. Prevention is imperative if we are to contain the danger of HIV/Aids problem.

In discussions with trade unions on 4 May 2006 in Tzaneen, I raised this problem with them. And I will raise it again with the hon members, so long as we avoid talking about what causes our problems. We are very sexually active and we forget the ABC – Abstain, Be faithful and use Condoms. [Interjections.]

On the international front, our relationship with the International Labour Organisation (ILO) has been enhanced by our re-election to serve in the ILO Governing Body as a titular member for the period ending in 2008.

I see hon members are excited here about shower’’. One should know why they are excited because they had showers, and it is showering nicely outside. So we shall beshowered’’ as we leave the House.

During 2005, we were assigned the responsibility of chairing the African Union: Labour and Social Affairs Commission, and we convened a session of this commission in Johannesburg in April 2005.

We convened the SADC Ministers of Labour as a first step towards revival of the SADC Employment and Labour Sector, which collapsed during SADC restructuring. Response from my counterparts in the SADC region has been overwhelming.

Chairperson, 2005 achievements prompted more challenges for further development. The rate at which the economy is growing has prompted a question as to whether we have the capacity to sustain it. The aim is to meet the Millennium Development Goals set by the UN and improve the living standards of our people.

Among the priorities for this year, we will develop an employment services system, which will facilitate the matching of job seekers with the employers electronically and through our labour centres throughout the country. This system will further assist in tracking people with various scarce skills and ensure vacancy registration, job matching, counselling, career guidance and placement services.

Recently, there has been an amount of disquiet about the rigidity of our labour laws. Anecdotal as it may be, we feel that this cannot be ignored. In this regard, Cabinet took a decision that the Department of Labour should conduct a labour market review, which, among other things, will focus on how labour laws impact on economic growth and small business development.

In sub-Saharan Africa more than 90% of job creation is done through small and medium enterprises, and the opposite holds true in our country. We will all remember that the President said in February 2005 - in consultation with our social partners - that a number of constraints limiting our capacity to embark on the road to change will receive urgent attention, based on the review of the regulatory framework as it applies to small, medium and micro enterprises. Before the end of the year government will complete the system of exemptions for these businesses with regard to taxes, levies, as well as central bargaining and other labour arrangements.

As far as labour arrangements are concerned, we then commissioned seven research papers in 2005 covering labour law, sector-specific regulations, municipal regulations and bylaws. These papers did not constitute new empirical evidence as based on year-analyses and already existing labour market data. However, we decided that we must examine these research papers and quickly approach the ILO to do a labour market review.

I have approached the Director-General of the ILO to help us with the review of our labour market. As a true friend of South Africa, Mr Juan Somavia has agreed to this task. The importance of this review is that it will provide a reliable source of empirical evidence upon which discussions on the labour market – as well as different viewpoints – can take place. Currently, we mainly rely on secondary and long-recycled information.

Labour inspection has noticeably improved its work in the past three year after we have put inspection and enforcement strategy in place. However, there are weaknesses and challenges that still need to be addressed. Furthermore, we resolved to enhance the productivity of our inspectors by providing them with tools of trade and by creating a special corporate identity. Recently, we sent a group of inspectors to Cuba to exchange experiences with their counterparts.

To further strengthen our inspection services, employment equity will receive special attention from the inspectorate, as we move from a procedural compliance to a substantive compliance as entailed in a Director- General review system. Similarly, we will implement the award system to recognise those who do outstanding work in compliance with the law. Currently I am unhappy with the level of compliance and the lackadaisical approach adopted by some employers on this matter. Let there be no illusion: The more we delay the implementation of this act, the more it will remain with us until we comply and implement it.

I have stated in the past - and I will continue to repeat the fact - that our government has inherited a country with disparities in the employment force and income within the national labour market. These disparities have for years disadvantaged the majority of black South Africans and could not be redressed by only repealing the discriminatory laws.

Furthermore, government led by the ANC felt it necessary to legislate the Employment Equity Act so as to eliminate unfair discrimination in the workplace.

Social dialogue is one of those areas whose value is hard to measure until a crisis arises with industrial action. This year we will publicise the results of Nedlac Review, which is currently done with the assistance of the ILO.

The Occupational Health and Safety Accord we signed with the social partners in 2003 is an envy of the world. Our codes of good practice, both for HIV/Aids and disability, were used as models by other countries. We take pride in this.

We will enhance our capacity to reach levels of excellence in social dialogue and share our experience with, first and foremost, our sister states in Africa and the world, if resources so allow.

I do want to say just one more thing ….

… Ndifun’ ukuphinda ndikuthethe endandikuthethe ngomhla wama-28 kuApreli ndisithi, ndibugxeka kabukhali ubundlobongela, ukonakaliswa kwezinto zabantu, ukubulawa kabuhlungu nokwenzakaliswa ngolunya kwabantu nokwehliswa kwabantu ngokonyanyisayo uloliwe ehamba. Ezi zenzo azisayi kuziphumeza iinjongo zabasebenzi. Ndiqinisekile ukuba abathandi benkululeko nentatho- nxaxheba kawonke-wonke bayanyanyiswa zezi zenzo yaye bachasene nobu bundlobongela buqhubekayo. Lifikile ngoku ixesha lokuba iinkokheli ziqwalasele undonakele. Mazizibuze ukuba olu gwayimbo lusesekhondweni elililo na. Ingaba akukho lunyawo lwamfene na? Ingaba obu bundlobongela benza ukuba kube lula na ukufikelela esigqibeni ngothethathethwano? Ndicela ukuba umoya ube phantsi. Abasebenzi mabahlis’ umoya. Igama labasebenzi liyangcola kwilizwe loMzantsi Afrika kunjalonje lingcola kwilizwe jikelele yaye ngoku siyagxijwa, siyagxekwa, sinyhibhelwa ngenxa yoofunzeweni noovukabayibambe abatshabalalisa bonakalise izinto zabantu. Loo nto ibonakalisa ngokuphandle ukuba phakathi kwabo, kukho abo bangqondo- bugqwirha. Ngoku, lifikile ixesha lokuchwetha nokubangula ubundlobongela phakathi kwabo. Akuzi kuba lula ke ubangula ubundlobongela kuba, njengaxa ubangula imeva, kufuneka ukhulule isihlangu, uxhome unyawo ukuze lowo ukubangulayo abe nokulibona imeva elo. Linye ke icebo, kukuba khe sithi xha ukuze sijonge ukuba sisajonge le nto bekufanele ukuba siyijongile na … (Translation of isiXhosa paragraph follows.)

[I want to repeat what I said on 28 April when I stated that I strongly condemn violence, malicious damage to people’s property, the gruesome murdering and the grievous assault of people, and the disgusting act of throwing people out of a moving train. These acts are not going to solve the cause of the workers. I am pretty sure that democracy-loving people and everybody engaging in public participation finds these acts disgusting, and that they are opposed to the ongoing violence.

Now the time has arrived for the leaders to check what the root cause of this is. They should ask themselves whether this strike is still on the right track. Is there no involvement of a third force, perhaps? Will this violence expedite the finalisation of the matter through negotiations?

I ask that they calm down. The workers should calm down. The name of the workers is being spoiled in South Africa and throughout the world, and now we are being blamed, criticised, and implicated because of the prophets of doom and the opportunists who destroy and damage people’s property. That clearly indicates that among them there are those with hidden agendas.

Now the time for removing and rooting out violence from among them has arrived. It will not be easy to root out violence, just like when one attempts to remove a thorn; one has to take off your shoe and lift your foot high, so that the one who has to remove the thorn can see it. There is only one plan, which is that we should pause and check whether are we still facing what we were supposed to be facing ….]

… I take this opportunity to thank all those who collectively contributed to the successes we highlighted above. A special mention should be made of the chairperson and members of the Portfolio Committee on Labour. And one of the members, incidentally, is Mark Lowe.

I am not thanking him for the DA. The reason why I am directing my thanks to him is that he keeps me so busy writing queries and asking me questions. When I met him at the airport in Durban yesterday, he even posed another question. [Laughter.] So he keeps me very busy. I suppose he is a very good MP and is not fit to be a member of the DA. [Laughter.] So, Mark, please think about crossing the floor very soon. [Laughter.]

I want to thank our Chairperson, hon Kasienyane and all the members of our Portfolio Committee on Labour. I am probably in this mood because of the support that the hon members do give me - the Chairperson and members of the National Council of Provinces [Applause.] and the Select Committee on Labour and Public Enterprises.

Lastly I would like to thank the entire staff of my department from the labour centres, in particular those who were beaten up by the strikers in Durban. Some had “blou oë” and we had our computers smashed. That is why I am saying that we need to condemn violence in the strongest possible terms. I also want to thank our Director-General, Dr Vanguard Mkhosana - one man who does not always make me look over my shoulder, because I know I have support behind me and he has no ambitions of becoming the Minister of Labour. [Laughter.] So, I have no doubt that working with him as a team, there are no challenges we cannot conquer as we advance to the future that lies ahead.

Ndiyabulela kakhulu. [Thank you very much.]

Ms O R KASIENYANE: Chairperson, hon Ministers, Deputy Ministers, hon members, distinguished guests, Dr Mkhosana and his team; 30 years ago mothers and fathers lost their daughters and sons who, as tiny as they were, took on a giant, evil and brutal apartheid system head-on without doubt nor fear. Although June 16 symbolises pain for many, it has provided South Africa with strength as we pull our nation from the ashes of years of oppression.

The 2006 Budget Vote on Labour present us with an opportunity to reconstruct what apartheid almost destroyed - our youth. It gives us great pleasure, as the ANC, to be able to reflect on history and be in a position to say, today is better than yesterday. Those school children, who led the 1976 uprising, are today men and women. I have no doubt that, as they wake up in the morning to go to their different workplaces, they are proud of the changes that have been made.

One of them told me last year, in Stella in North West, that today is better than 1994. But for our future children, South Africa is going to be the best country among nations. We will always feel indebted to those who toiled and struggled for their freedom and lost their lives. And the later budget for this year is part of our commitment to their ideal. There is a saying in Setswana, which says: Ngwana wa dikgomo ithute molodi, o gopole motlhang malata a ile. [Make hay while the sun shines.]

The Portfolio Committee on Labour has, over the past year, carried out its oversight mandate over the activities of the department. The committee received presentations from both the departmental officials and stakeholders who report to the Department of Labour. It is through these interactions that the committee was able to assess the progress these activities are making in implementing the plans of the department. Where the committee identified weaknesses, we duly instructed those responsible to take corrective action.

The committee was informed that the budget reflected the priorities set up for the 2006-09 strategy. The strategy is informed by commitments outlined in the ministerial programme of action of 2004-09 that emphasises the enhancing skills development through the National Skills Development Strategy to meet the skills needed by the country and, in particular, to address this within the context of the binding constraints on growth as articulated in the Accelerated and Shared Growth Initiative for South Africa, Asgisa. The Department of Labour is aiming at a code of good practice on integration of employment equity into human resource policies and practices, as well as amendments to the code of good practice on handling sexual harassment cases in the workplace.

The ANC, together with the alliance partners, has worked tirelessly in achieving current labour legislation. There is still room for improvement in implementing our laws, as the report on the industrial action by the Department of Labour shows that there has been a rise in strike action over a few years. The recent strike action by the security industry and the incidents that resulted as a consequence left a sour taste in our mouths. It is unfortunate that with all the laws that we have passed to entrench the rights of both workers and employers, fellow South Africans ended up losing their lives because of the industrial action.

It is my belief that both the employers and the unions must not point fingers, but take responsibility for those worst incidences since our democracy. The right to strike is one of the fundamental rights that workers are enjoying and should continue to do so. We condemn the abuse of that right by individuals who engage in acts of hooliganism and who assault innocent drivers, pedestrians and vandalise property.

Yesterday, striking security guards disrespected Parliament as they continued to intimidate parliamentary staff. We support the course of this struggle while we condemn actions that fly in the face of what we have achieved during our struggle. [Applause.]

A more consensual and constructive approach to agreement-making is an important issue for all South Africans.

Anton Roskam, in his paper for the Cosatu conference last year argued that:

… Constitution entrenches, amongst others, the following fundamental rights that are important for workers and the working class; the right to equality, which includes the right not to be unfairly discriminated against; the right to freedom of movement and the right of access to courts.

Constitutional accomplishments in protecting the rights of workers should be protected as there are many changes regarding the nature of work. With the rise of casualisation, labour brokers and temporary employees are all reasons the Department of Labour should make sure that there is more compliance with regard to our labour laws.

The Freedom Charter is more relevant today than it was years ago. The Constitution of this country is a vehicle to convey phrases like “all shall be equal before the law” and “all shall enjoy equal human rights” into practical meaning for all. The extent of casualisation and the use of labour brokers is, itself, a problem affecting the welfare of working people and sometimes that requires greater regulation. The ANC shall continue to promote labour policies that encourage employment and protect workers in general. However, fighting unemployment and poverty does not mean we shall promote policies where the poverty of workers is the means of enrichment for big businesses.

As all our energies are directed at fighting poverty through Asgisa, our vision should be the reduction of unemployment through job creation, the development of small, medium and micro enterprises, and skills provision through sound and fair labour policies, in order to protect those most vulnerable in our society.

The institutionalisation of social dialogue in South Africa has seen Nedlac bringing together government, business, labour and organised community groupings to try and reach consensus on socioeconomic policies. Although there have been criticisms regarding its relevance in the current economic era, Nedlac still has a central role to play.

We have to produce practical laws that will increase the protection of workers while stimulating the economy. Whilst we encourage foreign investment so as to stimulate economic growth in this country, our history does not allow us to turn a blind eye to the negative impact that globalisation has on our people. Our history of colonial oppression and apartheid demands that we, as lawmakers, be the gatekeepers for South African vulnerable workers.

Nedlac has a crucial role to play on domestic labour policies and on issues as they are raised in forums such as the International Labour Organisation. Issues such as occupational health and safety will be debated at length during the upcoming ILO conference in June this year. It is crucial, because we face a lot of challenges concerning this matter.

With so much to celebrate, with regard to our labour legislation, it is indeed disappointing to still find big businesses that do not adhere to our Occupational Health and Safety Act. It is indeed sad that it still takes the loss of lives for companies to stick to general health and safety regulations. The upgrading of health, safety and security measures in all organisations should be a number one priority as the laws of human life means more than profit. We therefore applaud the budget increase of 24,4% for specific investigation into certain occupational health and safety incidents, such as the Sasol incident last year.

The National Productivity Institute (NPI), whose mandate is to create a productivity movement in South Africa, is one of the mechanisms through which the previously disadvantaged are being empowered. The NPI is ideally positioned to be a catalyst institution focused on contributing to socioeconomic development and competitiveness of South Africa by supporting Asgisa.

As the ANC-led government is tirelessly trying to address skills shortages, efforts from the NPI and other institutions to raise levels of productivity coupled with efficiency and quality output, will get the South African economy to reach the 6% set growth target.

The NPI has been involved in numerous sectors including clothing textiles, forestry, sugar, footwear, chemicals, agroprocessing, timber products and road freight. Some of the projects include: The Essential Oil Project from the Free State; Yesintu Arts and Crafts in Durban; Itireleng Vegetables Farming Project in Lichtenburg, North West; Ekurhuleni Brick Making Venture in Gauteng; the Escapade Spa Project in Mpumalanga; the SOS Grilled Food in Gauteng and the Masinyane Farming Incubation Project in the O R Tambo region in Mputhi village, Eastern Cape.

In conclusion, based on the work that the NPI is doing to invest in our people and to improve the lives of our people, and based on the work that other entities are currently doing to improve efficiency and delivery of services, there is no reason why the ANC cannot support this Budget Vote. Thank you. [Applause.]

Mr C M LOWE: Thank you for your kind words this afternoon, hon Minister. But, you of all people must realise that it’s going to have absolutely no effect on my speech this afternoon. Could I just start off by saying that perhaps you need a better choice of quotation in the future, Sir. Francis Bacon’s “knowledge is power” might be true but you really have to have the knowledge.

Sir, I am informed that the Paprika Project in the Free State was a complete and utter failure, and one of the biggest embarrassments we have ever been involved in in the province. I look forward to your response later on.

It is deeply ironic that this year’s labour budget debate takes place in May, the month historically associated with the rights of workers around the world and a mere three weeks after the International Workers’ Day, which is dedicated to celebrating these rights. It is ironic because here in South Africa, with unemployment at 30% higher than 10 years ago and with a skills crisis of such epic proportions that it keeps no less than the Deputy President awake at night, the month of May has seen strike action, violent protests, wanton destruction and even death on a scale unprecedented in our new democracy.

The ongoing security guards strike and the conduct of the SA Transport and Allied Workers Union, Satawu, in particular, are grim reminders of the damage done when unions behave recklessly and irresponsibly. Just yesterday, only metres from this Parliament building, the city of Cape Town became a war zone. Journalists were attacked and stabbed, car windscreens were smashed, shop windows broken and road signs uprooted as militant Satawu strikers – many armed with steel pipes, pickaxe handles and sticks – marched through the city wreaking havoc and demonstrating the thuggery of some members of South Africa’s trade unions.

Panic-stricken, law-abiding citizens ran for cover, shop workers were threatened and traumatised and at least one person – an overseas tourist who will return home today to tell the rest of his country about the thuggery and the appalling unchecked violence in our country – was thrown through a plate glass window. Nothing more clearly demonstrates the fact that Satawu, itself never actually on top of the problem, have now finally lost control. The strike has also been a timely reminder of the failure of the Minister of Labour. Instead of providing the necessary leadership and guidance to all stakeholders, instead of taking charge and solving the problem, he has been noticeably and uncharacteristically quiet.

The DA recognises the right of the workers to strike but we cannot condone the behaviour of these thugs, who are intent on terrorising South Africans in an effort to put pressure on their employers. And your muted response this afternoon, with respect, has been totally and utterly inadequate. Workers have rights, but law-abiding citizens do too. For a Minister well known for brazenly sticking his nose in often where it is unwanted or unwarranted, he chose to remain silent for a whole month before condemning the deaths of nine people and intensity of the violence striking security guards were perpetrating against their non striking colleagues. And where were the SAPS in all of this? Why were they not better prepared to deal with the thuggery and the violence?

On 21 April my colleague, Roy Jankielsohn MP, wrote to the Minister of Safety and Security to raise concerns about the ongoing strikes by members of the security unions and to urge the Minister to make sure extra precautions were taken. In their reply, dated 2 May, the Minister’s office indicated that the letter had been referred to the National Commissioner of the SAPS for further attention.

The Minister knew about previous violent protests carried out by Satawu; he knew about yesterday’s march in Cape Town and he had been warned that extra precautions needed to be taken. Why then did he fail to take the appropriate action? Is the Minister of Safety and Security still more concerned with peace efforts in Burundi than securing the safety of our own people here in South Africa?

CCTV cameras recorded many of the criminal incidences yesterday. The DA demands that the SAPS make use of this filmed evidence and identify the culprits. They must be prosecuted and they must be jailed. A lesson from this fiasco is that our labour laws must be amended to prevent a repeat of mass anarchy and wilful destruction of property.

Trade unions must be held responsible for unlawful actions and criminal misconduct of their members. Satawu’s apology to the public this morning is far too little and is far too late. The current labour dispensation allows what the leader of the official opposition has quiet correctly called legalised thuggery and the DA will now do what the Minister of Labour has so far failed to do.

The DA will introduce private members’ legislation to force unions to take responsibility for strikers who take the law into their hands, making them criminally and civilly liable for damage caused.

The National Economic Development and Labour Council (Nedlac) has also failed again to live up to its expectations. The security guards strike in the nine month rolling mass action by trade unions opposing Transnet’s restructuring plans - ironically only resolved yesterday - are again two good examples of where one would have to see Nedlac play a more active role. They simply have not done so. Nor have they held any sway in preventing Cosatu’s call for a one-day national strike by their members tomorrow to protest government’s failure to create jobs.

Here perhaps is a greatest irony of all. Cosatu, an alliance partner of the ruling party, going on a national strike hoping to create jobs isn’t that just a bit like to war to keep the peace? And where is the steadying hand of the Minister of Labour to be seen in all of this? Where is the guiding voice and leadership of Nedlac? Its annual costs this year comes to R12,7 million.

Where is the Minister of Education urging the employed teachers to stay in the classroom where they are supposed to be teaching? Where is the Minister of Health urging the nurses to do just the same in the hospitals? And why is the Deputy President not pointing out that undermining the functioning of an education system that already is failing to produce suitably skilled individuals by allowing employed teachers to go on strike will only make the situation worse, not better?

Will Cosatu be allowed to go ahead and strike and march tomorrow, paralysing the manufacturing and business sector for another day, further dissuading prospective investors and small business owners from engaging in further employment creating ventures, and making it even more difficult for government to reach growth targets, oversee job creation and plug the skills gap?

The DA’s message is unequivocal: Cosatu must call off the national strike tomorrow, and the Minister must intervene decisively to restore calm and control to a dangerous and volatile situation that has run away from him on his watch.

An underlying cause of much of this is, of course, the appalling unemployment rate: 20 million South Africans are able to work, only 12,3 million actually do so. And in every labour budget debate for the past four years we have pointed out the ANC’s failure to create jobs and clearly and constructively offered a plan with practical steps of how government needs to address this, their appalling crisis.

Time precludes me from doing the same this year, save to say that the DA agrees with Cosatu on the importance of job creation and poverty alleviation and shares many of its concerns regarding its issues. We invite Cosatu to join us in pressuring government to implement policies that will create jobs - not destroy them.

The irony of the labour portfolio committee holding three full days of public hearings on youth unemployment is laughable, were it not so tragic.

South Africa’s labour laws were adopted with good intentions, but the implementation has kept nearly 8 million South Africans outside the magic circle of those luckily enough to have a job. The ANC’s labour policy is that many reason for so much of unemployment even the previous Minister, Governor Mboweni, realises that. Extremely poor levels of Matric maths and science is another reason and until we amend the labour laws and fix the problems in education, our youth will continue to reap the bitter harvest of ANC denial and ANC stupidity. You do not need expensive advertisements and parliamentary hearings to tell you that.

And so to the ANC’s latest great idea, first we had the RDP, then when that did not work we had Gear, then when that did not work, we created Setas to build up the scarce skills base that the ANC had thrown away. And when that did not work, as we have consistently argued and warned from this platform that it would not, we now have Jipsa as well as Asgisa, all intended to address the skills revolution that the Deputy President has said we need.

Well, we agree with her. South Africa does desperately need a skills revolution if it is to stem the expensive failure that the Setas have been and staunch the flow of highly qualified South Africans who cannot use their skills to build this country, because they happen to have the wrong skin colour.

But, the irony is that if they are going to have the skills revolution, then they need to become revolutionaries and revolutionise their thinking.

The ANC have grown far too comfortable and complacent on these benches. They’ve swapped their comrades to the Concorde and Gucci socialites. You have forgotten how to become revolutionaries. If they really want a skills revolution that will truly deliver the skills and jobs, then economic growth must be the non-negotiable priority above racial preferencing, especially with regard to priority skills acquisition.

As John Kane-Berman wrote last week and I quote:

One of the lingering consequences of apartheid is that a far greater proportion of whites are possessed of professional and other skills than is the case among blacks. But if government is genuinely committed to halving unemployment by 2014, it will find it has no choice but to make use of all the skills it can possibly find - even those acquired by whites at a time when opportunities were denied to the great majority of South Africans.

And by the Deputy President’s own reasoning unless the skills bottleneck is unblocked, the battle against poverty and unemployment can never be won.

The ANC can never have it both ways. They can never have a racial bias in the hiring and skills revolution at the same time. One of them will have to be sacrificed. The DA knows which one has to go, but does the ANC? Thank you.

Ms L N MOSS: Madam Chairperson, Minister of Labour, members of the labour portfolio committee, distinguished guests, leaders and members of the civil society, on 8 May 2006 we celebrated the 10-year anniversary of the Constitution. We view this time to elaborate on the implementation of the 2005-10 labour strategy plan.

The Employment Equity Act, Act 55 of 1998, was passed to eliminate discrimination in the South African workplace environment based on race and gender. The meaning of equity in the Afrikaans language is …

… regstellende optrede. Soos aangedui deur die arbeidsopname in September 2003, was die aantal persone formeel in diens geneem soos volg: Swart 87,4% en wit 12,6%. Regstellende optrede-aanstellings was soos volg: Swart 77,1% en wit 22,7%. Swart verteenwoordiging was beter in beroepe soos onderwys, tegnici, klerke, ensovoorts, maar het nog ver te kort geskiet wat uitvoerende- en senior posisies betref.

Vroue het nog steeds ’n groot agterstand wat senior posisies betref, veral in die landbou-, energie- en mynbousektore. Dikwels kan regstellende optrede nie genoeg vorder nie, weens onwillighede in sekere sektore asook die gebrek aan bekwame en geskoolde persone. (Translation of Afrikaans paragraphs follows.)

[… affirmative action. As indicated by the labour survey of September 2003, the number of people formally appointed was as follows: Black 87,4% and white 12,6%. Affirmative action appointments were as follows: Black 77,1% and white 22,7%. Black representation was better in professions such as education, technical, clerical, etc, but still lacking as far as executive and senior positions are concerned.

Women are still lagging far behind concerning senior positions, especially in the agricultural, energy and mining sectors. In many instances affirmative action is unable to make substantial progress, due to the unwillingness in certain sectors as well as the lack of competent and skilled people.]

To reverse this situation, the necessary skills development strategy was introduced to provide the nation with skills and to reduce unemployment and the number of unemployables.

Nuwe uitdagings het ontstaan en so moes strategieë ook verander en aangepas word. Die 2005-10-strategie het die volgende doelwitte ten opsigte van regstellende optrede: Om die nodige vaardighede te ontwikkel om in te pas by die nasionale groei en ook ontwikkelingstrategie; om swart ekonomiese bemagtiging te versnel wat kritiek is om werkloosheid teen 2014 te halveer; om skuiwergate te verminder ten opsigte van billikheidstelkaarte; om goedere en dienste vanaf swart ekonomiese bemagtigingsbesighede aan te koop, want SEB bevorder frontering wat die ekonomiese welvaart nog steeds in die hande van die voorheen bevoordeeldes plaas en ’n groepie swart individue en uitgesoektes bevoordeel. Hierdie trein moet beweeg na die stasie van ware bemagtiging. (Translation of Afrikaans paragraph follows.)

[New challenges developed and so strategies also had to change and be adapted. The 2005-10 strategy has the following aims with regard to affirmative action: To develop the skills needed to fit in with the national growth and development strategy; to speed up black economic empowerment, which is critical to halve unemployment by 2014; to decrease loopholes with regard to equity score-cards; the acquisition of goods and services from black economic empowerment businesses, because BEE promotes fronting, which still places economic prosperity in the hands of the previously advantaged and benefits a small group of black individuals and a chosen few. This train has to move to the station of true empowerment.]

I’m worried that certain companies did not want to comply with the BEE strategy of the government. They also announced in public that there is no need to comply with BEE because it is their money, nobody can tell them from whom they must procure. How can we as public representatives explain this to these ordinary citizens whose hopes are based on development?

Sekere sektore in die arbeidsektor het nog nie ten volle getransformeer nie. Die blaam kan nie voor die deur van die geaffekteerde partye gegooi word nie. Die regering moet ten volle verantwoordelik wees vir verandering om hierdie werkers te beskerm, met spesifieke verwysing na die huiswerkers en die landbousektor.

Om die mees uitgebuite werkers te beskerm is ingryping nodig. Dit sluit in die uitvoerende kunste, bosbou, taxi’s en fabrieke. Sektorevaluering is so dat arbeidsregulasies weer nagekom moet word. Kinderaksieprogramme moet geïmplementeer word, fabrieke herontwerp en gestruktureer word en bedingingsrade in die sektor wat nie oor sulke strukture beskik nie, moet gestig word.

Ek wil ook sien dat tradisionele vissermanne en pelagiese vissermanne as onbeskermde werkers beskou word. Baie werk lê nog voor. Hulle is in diens van die skippers en nie van fabrieke nie, en word nie beskerm deur arbeidsregulasies nie. Hulle situasie is selfs slegter as dié van plaaswerkers en huiswerkers.

Daar is ook ’n nuwe tendens wat posvat in Suid-Afrika, naamlik togarbeid en die uitkontraktering van werk. Hierdie is ’n instrument deur werkgewers om arbeidsregulasies te ontduik en hulle verantwoordelikhede na ander oor te skuif. (Translation of Afrikaans paragraphs follows.)

[Certain sectors in the labour sector have not yet fully transformed. The blame cannot be placed at the door of the affected parties. Government must be completely responsible for transformation to protect these workers, with specific reference to domestic workers and the agricultural sector.

Intervention is needed to protect the most exploited workers. This includes the performing arts, forestry, taxis and factories. Sector evaluation is such that labour regulations must once again be complied with. Child action programmes must be implemented, factories redesigned and restructured, and bargaining councils must be created in the sector that does not have such structures at its disposal.

Moreover, I would like to see the traditional fishermen and pelagic fishermen also being regarded as unprotected workers. A lot of work still lies ahead. They are employed by the skippers and not the factories, and are not protected by labour regulations. Their situation is even worse than that of farmworkers and domestic workers.

There is also a new trend taking root in South Africa, namely casual labour and the contracting out of work. This is a tool used by employers to evade labour regulations and shift their responsibilities onto others.]

This form of labour practice is mainly done by BEE companies and parastatals that walk away with a lot of profit in their pockets. We will work with our social partners, the business sector and civil society organisations in our campaign and ensure that our goals are reached.

Voorsitter, het ek nog tyd oor? [Chairperson, do I still have some time left?] [Interjections.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Ja, u het. Nog drie minute en 18 sekondes. [Yes, you do. Another three minutes and 18 seconds.]

Ms L N MOSS: Ek wil van die oorblywende tyd tot my beskikking gebruik maak om net vir die agb Lowe die volgende te sê … [Tussenwerpsels.] [I would like to use the remaining time at my disposal to just tell the hon Lowe the following …] [Interjections.]]

I think you must come to the portfolio committee more often … [Interjections.] … and not just come to attack the ANC or the Department of Labour or the Minister. Come and attend the portfolio committee meetings so you can know exactly what we are discussing in the portfolio committee. [Interjections.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Order! Order, members.

Ms L N MOSS: You get positive criticism and negative criticism. [Applause.]

Prince N E ZULU: Thank you, Madam Deputy Chair. Lest I forget, let me echo the Minister’s condemnation of the behaviour of the strikers, which we have just seen in recent days. In this age of democracy that we are in, that really stinks to high heaven. From a general point of view, the core function of the Department of Labour is to ensure the welfare of the employed person, as well as the protection and the improvement of worker rights and their benefits. However, the functions expand to reducing unemployment, poverty and inequality by way of improving economic efficiency, skills development and job creation. Recognising the above functions, their programme line-ups, and the funds allocated for implementation, the IFP supports the Budget Vote.

The support we give serves as an expression of intent, to see increased capacity for inspection and enforcement services. Workers in many sectors still don’t enjoy the full benefit of their labour in the manner provided for in legislation, and in the code of good practice.

The many industrial actions we see as of late, like the one we saw yesterday here in Cape Town, bear testimony to their unhappiness. But that does not give them a leverage to abuse the law to break other laws in the statute book. We recognise the R5,5 billion allocated to Setas and the National Skills Fund (NSF) to take their programmes forward. This will be closely monitored during the period under review.

Programme three concentrates on finding jobs for the unemployed persons, the effectiveness of the Setas, the identification of scarce skills and the Umsobomvu Youth Fund, etc. We note that Setas were in place about five years ago, and yet skills shortages still dominate the job market. As a means to boost skills acquisition we see government taking the route of the Joint Initiative for Priority Skills Acquisition (Jipsa) in order to address the acute shortage of skills within the business fraternity.

Economic wisdom tells us that without sharpened skills, the country is unable to grow and develop. We see the government’s growth target of 6% as a worthwhile course to pursue. This target may be reachable if we retain the skills we have as a country, and are able to develop more and more of them.

We have to harness the outflow of skills to other countries and jurisdiction by way of creating secured jobs and favourable conditions of employment. The Umsobomvu Youth Fund was designed and mandated to develop skills, thus create employment for young people. It is also of concern that young people in rural areas sometimes deny knowledge of Umsobomvu per se. We understand the challenge of Umsobomvu in rural areas - its dependency on service providers and the lack thereof.

We have, in the past, warned that failure to provide a clear package for rural development will render the youth tracking to metropolitan areas in search of what Jipsa and Asgisa will be offering there. Again, we raise our voices that priority needs in rural areas are different from those in urban areas. We thus suggest that Umsobomvu should use churches, schools and traditional authorities to introduce their programmes.

We are desperate, and we should use whatever means at our disposal. The programmes of Umsobomvu are new and potent with vision and ability to create a new nation for South Africa, a nation that will narrow the gap between the two economies. It is with this in mind that the others advocate a new department for youth affairs. The young blood in Umsobomvu forms part of the material that can make up the new department. The Portfolio Committee of Labour recommended that Setas should develop a database of all learners who have completed their learnerships and places where they have taken up employment. This is intended for easy reference.

Poverty remains high in rural areas. The inequality between the rich and the poor makes the angels cry at the Gini coefficient rating of 0,65. Poverty is expected to drop by half in eight years to come. Is this realistic, given our current situation in sub-Saharan Africa? What better tomorrow can we promise our youth against all these odds? The answer is not simple.

In the years gone by, employment was the preserve of the individual without focusing on the family and the neighbourhood. In present circumstances, a job for an individual is the beginning of the development process in that community. The more young men and young women take up employment in that society, the brighter the future becomes. More children will go to school, health conditions will improve, transport networks will harmonise, and the economy will accelerate. Let every young person have a job. I thank you. [Applause.]

Mr G LEKGETHO: Thank you, Chairperson, my Minister, and Members of Parliament and fellow citizens. It gives me great pleasure to stand before you today and address you on a vulnerable sector of the workers. As we join the Deputy President in her quest to achieve sustainable growth that is shared by most South Africans, it is vitally important that we address the issues of vulnerable sectors that do not enjoy fruits of freedom, as they are victimised and restricted in accessing services that our struggle has achieved for them.

For Asgisa to succeed, government should invest in its people so as to receive maximum economic growth. The first question that comes to mind is: Where do these workers come from? The question is relevant and important because it reveals that this is a deliberate man-made condition. Therefore, Mr Lowe of the DA should help to arrest culprits and make this country united, nonracial, democratic and prosperous.

As we celebrate the 30th anniversary on 16 June, let me seize the moment and thank those who sacrificed their lives, both the heroes and heroines in our midst and elsewhere in the liberation movement that today we can boast with these progressive laws.

We have the Labour Relations Act that intends harmonising the relations between the employer and the employee; the Employment Equity Act of 1998 that addresses methods applied in the past to disadvantage people based on colour and sex, to promote equal opportunities through implementation of affirmative action; and the Skills Development Act of 1997 that intends to capacitate those previously disadvantaged and enhances productivity in the country. Here one needs to encourage the National Productivity Institute with the work they are doing today.

The Basic Conditions of Employment Act of 1997 intends to eradicate economic deprivation through addressing issues of a cheap migrant labour system, systematic discrimination against black people based on massive income and wealth disparities, and high levels of unemployment.

One must immediately applaud the ANC-led government and the Department of Labour for enacting all these progressive laws that have improved living conditions of workers. Today we see trends in employment relations likely to affect workers negatively and contribute to insecurity and vulnerability in the labour market, because of typical workers. These will include farmworkers, domestic workers, taxi sector workers, child labour workers, etc.

I will deal briefly on each above-mentioned vulnerable sector of the workers. Historically, black rural people, particularly farm dwellers, have borne the brunt of unequal social and political relations entrenched under the apartheid system. Desperate access to land and the socioeconomic rights of farmworkers continue to define relations between black and white people within the farming communities. Commercial farmers enjoy significant advantages over the farmworkers and other farm dwellers. Their dependency on farmers for employment, accommodation, transport, and in certain instances, social services, makes it difficult for them to enforce their right against these abuses. To exacerbate the problem is the fact that out of 900 000 farmworkers, one in 19 is organised, which is a drop in the ocean. Intimidation has also contributed to this fact.

Although legal protection has been extended to farmworkers’ labour rights, there is still a widespread notion of noncompliance with labour laws. Extremely low wages, long hours, dangerous working conditions, victimisation of trade union members, child labour practices and use of the dop system (whereby workers are given alcohol as a component of their wages, that in the Western Cape has led to high incidents of children born with foetal alcohol syndrome, which at 11% is the highest in the world) are all issues that need to be addressed.

Illegal immigrant farmworkers brought here by these farmers from Mozambique and Zimbabwe are still subject to extreme abuse or exploitation. In many cases, farm owners will hire these illegal immigrants to perform certain work. They will have them deported without paying them. Violence against illegal workers goes mostly unreported.

As our alliance partner puts it, each measure that the government implements causes a new wave of revenge by farmers. History has taught us that the partnership between the ANC, Cosatu, SACP and Sanco have led to the emancipation of our people. Therefore, in furthering the national democratic revolution, it is vital that the alliance partners come together in ensuring compliance with all labour laws in order to fight the extent of degradation of our people. We cannot celebrate freedom when a section of our population still endures humiliation and oppression every day.

In Annie Plaas at Coligny in the North West Province, Mr Danie du Plessis assaulted a farmworker, Mr Koos Vilakazi, for allegedly organising workers because of poor working employment conditions. In Graslaagte in Lichtenburg, Mr Nel sprayed a worker with a black fluid gas, and that worker was hospitalised. In Grahamstown, in the Eastern Cape in December 2000, a farmer Cornelius Bosman set dogs on a female farmworker, Ntombi Mini, before beating her to death with an iron bar. He allegedly again drove over a farmworker, Lingwe Mzimasa, and set dogs on her.

There were no hullabaloos from the white farmers, but recently when in the Free State a white farmer was killed and which the ANC condemns, the farmers urgently called for the President’s intervention. These examples demonstrate how the life of a black farmworker can be cheap to a white farmer. This discrimination needs to be addressed. These incidents are endless. Farmers should be consistent in calling for interventions, regardless of colour or creed. The abuses are not just physical, but the impact of verbal, psychological and other forms of abuse on farm dwellers should not be underestimated. In this regard, we condemn labour … [Time expired.]

Mr H B CUPIDO: Deputy Chair, the ACDP has become increasingly concerned about the inefficiencies with regard to the implementation of legislation. We therefore welcome the increased budget allocation to service delivery, and the provision that has been made for the integration of legislation and labour policy with service delivery objectives. Such an integrated approach will ensure that the proposed impact of legislation that is passed will be relevant, realistic, measurable and sustainable.

While we still harbour a measure of concern about government’s capacity to halve the unemployment rate by 2014, we are encouraged by the Department of Labour’s commitment to creating employment through the monitoring of overall growth and development. The department has formed a large number of labour institutions over the past 10 years, and will now endeavour to conduct ongoing evaluations of the effectiveness of these institutions. Such measures will contribute to the alignment of all role-players with the overall strategic goals of the department.

The labour budget further makes it possible for the institutional capacity of the department to be considerably strengthened, and this will undoubtedly have a significant and positive effect on service delivery and the integrated approach to the unemployment crisis.

The intensity and frequency of recent labour strikes indicate that while the South African economy is showing sustained growth, the results of this growth are not trickling down to the people who need it most. The gap between the first and second economies is still too wide and there is not enough evidence that government interventions are succeeding in closing this gap. The fact that economic growth has not translated into jobs, suggests possible shortcomings with regard to the developmental aspects of growth.

The ACDP noticed that the labour budget places considerable emphasis on achieving a balance between economic growth and development issues. This approach, together with the skills development initiatives as set out by Asgisa, should provide a strong foundation for measures aimed at addressing the unemployment crisis.

The ACDP supports the budget. Thank you. [Applause.]

Mnr W D SPIES: Agb Voorsitter, daar word gesê dat die armste persoon nie die een sonder geld is nie, maar die een sonder hoop. Ons hou ons, ideaal gesproke, in die politiek ook daarmee besig om juis vir mense weer hoop te gee. Dit verduidelik ook die aankondiging vanjaar deur president Mbeki dat Suid-Afrika die “era van hoop” betree het.

In dié verband bedank die VF Plus die regering en die Departement van Arbeid, asook instansies soos die National Skills Fund, vir hul pogings om kundige Suid-Afrikaners weer in die ekonomie terug te plaas. Die media het verlede week berig dat die eerste 36 kundiges wat hoofsaaklik van die VF Plus se databasis gewerf is, op 1 Mei vanjaar diens aanvaar het. Ons dank die betrokkenes vir die hoop wat hierdie inisiatief vir duisende moedelose mense daarbuite gegee het.

Maar daar is ook gebeure wat mense weer moedeloos maak en alle hoop laat verloor. Een só ʼn voorbeeld is die vorige ANC-spreker se nuwelingstoespraak van so pas, wat deurspek was van rassisme. Die tweede voorbeeld is dié van die agb Minister verlede jaar voor die Black Management Forum waarin hy gesê het dat ʼn anti-wit houding by swart werkers geen uitwerking op die maatskaplike posisie van witmense sal hê nie. Dít is ʼn voorbeeld wat mense moedeloos maak en ek wil graag weet wat die Minister daaroor te sê het.

Ook die vakbondwese het ʼn mandaat om mense hoop te gee en om deur hul optrede daartoe te lei. Die staking van Satawu wat nou reeds twee maande duur, is ʼn voorbeeld van wat nie moet gebeur nie. Satawu-lede het nou reeds twee maande lank geen inkomste gekry nie. Hul staking het hulle dus reeds een sesde of 17% van hul jaarlikse inkomste gekos. En selfs al ontvang die stakers die 11%-verhoging wat hulle eis, is hulle nog steeds armer as wat hulle sou gewees het as hulle nie gestaak het nie. Die geweld van gister is ʼn sprekende voorbeeld van die optrede van mense wat alle moed verloor het.

Die VF Plus betree met mening die era van hoop. Mag ons woorde en ons dade help om daardie hoop ʼn realiteit te maak. Baie dankie. (Translation of Afrikaans speech follows.)

[Mr W D SPIES: Hon Chairperson, it is said that the most needy person is not the one without money, but the one without hope. Ideally, in politics we are also occupying ourselves particularly with giving people hope again. This also explains the announcement made by President Mbeki this year that South Africa has entered the “era of hope”.

With regard to this, the FF Plus wants to thank the government and the Department of Labour, as well as institutions such as the National Skills Fund, for their attempts to place competent South Africans back into the economy. In the past week, the newspapers reported that the first 36 experts, who were primarily recruited from the database of the FF Plus, had assumed duty on 1 May this year. We thank the parties involved for the hope that this initiative has instilled into thousands of disheartened people out there.

However, there are also events that are making people despondent again and causing them to lose all hope. One such example is the maiden speech of the previous ANC speaker a minute ago, which was packed with racism. The second example is that of the hon Minister in his address to the Black Management Forum last year, in which he said that an anti-white attitude on the part of black workers would have no impact on the social standing of whites. This is an example of what makes people despondent, and I would like to know what the Minister has to say about that.

The trade union movement also has a mandate to instil hope into people and to realise it through their actions. The strike by Satawu that has been continuing for two months now, is an example of what should not happen. By now Satawu members have not received any income for two months. Their strike has therefore already cost them one sixth, or 17%, of their annual income. And even if the strikers do receive the 11% increase that they are demanding, they will still be poorer than they would have been if they had not gone on strike. Yesterday’s violence is a striking example of the actions of people who have lost heart.

The FF Plus is entering the era of hope in great earnest. May our words and deeds help to realise that hope. Thank you very much.]

Mr B M MKONGI: Thank you very much, Chairperson. I am honoured and privileged today to rise in front of this august House, the National Assembly, in this important year of the 30th anniversary of the Youth Uprising of 1976.

It is befitting for me to dedicate this speech to the 1976 detachment that laid down their lives for a South Africa that is free from injustice, humiliation, inequality and discrimination based on race, class and gender. It is equally a privilege and an honour for me to stand before you in the year of the 60th anniversary of the African mineworkers’ strike of 1946.

Both these militant struggles, and many others, became an inspiration to the oppressed and dispossessed masses of our people who continued with the struggle for people’s power, that made it possible for me and others as young as we are, to stand here bravely and unwaveringly in defence of our democracy, our democratic government and our people.

Those militant struggles of our people made it possible for South Africa and her people to adopt the Constitution 10 years ago – our national social contract. This Constitution gave birth to many laws and Acts in this country that reflect, in practical terms, the requirements of our Constitution in a constitutional democracy.

Hon members, the Minister of Labour during the debate on the state of the nation address in 2004 reminded us that these Acts are a direct response to draconian legislation that was firmly rooted in notions of “kragdadigheid” [forcefulness] and deeply antiworker and antidemocracy in complexion, which only served the interests of the colonial masters, the whites and the few, the denial of opportunities to our people to develop skills and a deliberate attempt to keep black workers unskilled and illiterate.

Hon Lowe, since our progressive legislation was passed and carefully implemented by our government, the majority of workers in South Africa enjoy equal rights; the majority of our people enjoy access to the labour market; the skills development programme of our government is enjoying numerous successes; millions of jobs were and are being created since 1995; our economy is growing more than ever before; our education system from primary to tertiary level is maturing for the better; and the youth, women and our people with disabilities are really seizing the opportunities of democracy. It is indeed a case of “today is better than yesterday and tomorrow will be better than today”!

Chairperson, it is true that while labour market policies do contribute to the promotion of decent work, they cannot create jobs on their own. A combination of properly harmonised partnerships and strategies is required in this regard to ensure that the economy generates access to skills and enough employment opportunities, in order to reduce the rate of unemployment.

The last few years witnessed successful attempts to consolidate gains made through the robust implementation of labour market policies and programmes in line with labour legislation. It is, therefore, a brilliant move by our government to launch and implement a strategy like the Accelerated and Shared Growth Initiative for South Africa, otherwise known as Asgisa.

In this regard, the President of the Republic in his state of the nation address this year revealed the need to balance economic growth and development issues with a strong emphasis on the developmental aspects of economic growth. In doing so, he elaborated on Asgisa and the ways in which it will contribute towards the reduction of unemployment levels.

The President also stated that, given that the majority of the poor are young people, women and people with disabilities, this has important implications for the gendered dimensions of the economy and the strategic integration of the youth and people with disabilities in that particular economy.

Hon members, in the same spirit, the Ministry of Labour is implementing the National Skills Development Strategy (NSDS) 2005-10, to contribute systematically to government’s broader goals to halve unemployment and poverty, and reduce inequality by 2014. The NSDS spells out the priorities to which the projected income of R21,9 billion from the skills levy will be allocated. Hon Lowe and the DA, in line with that strategy, there are aggregate indicators that Setas and projects funded by the National Skills Fund must achieve. This will ensure that we provide our country with skills to assist the country’s competitiveness and growth as part of the broader human resource strategy; access scarce skills to support the implementation of Asgisa; improve participation of SMMEs in skills development; improve productivity through work-based skills intervention programmes, assisting the youth, women and people with disabilities to enter the labour market through learnerships, apprenticeships, internships, bursaries and other scarce skills programmes; improve literacy levels through Abet interventions and incentives; improve the quality of learning through SA Qualifications Authority accreditation and institute sectoral or occupational excellence; and lastly, the training of participants in the Expanded Public Works Programme and the likes.

Hon members, it is really an age of hope for our people. These efforts will be a catalyst that assists the Joint Initiative for Priority Skills Acquisition, known as Jipsa. Jipsa is aimed at a systematic response to the skills challenge in a practical way. It will attempt to help find people with the skills for implementation of Asgisa projects.

These projects range from the re-equipping and financing of FET colleges, to the strengthening of teaching and research in our institutions of higher learning, the doubling of maths and science graduates’ output in our schools and recruiting more teachers with this scarce skill, the reopening of nursing colleges to increase the number of qualified nurses, and so forth.

Among other things our government will ensure that the focus on youth development is intensified in all spheres of government, as an integral part of our national effort.

Our government takes this position when the world will be attending the 94th session of the International Labour Conference in June this year in Geneva, under the leadership of the International Labour Organisation, to discuss the world threat and challenge of continuing global youth unemployment.

Mr Lowe, you don’t attend meetings. We took this decision during a meeting. [Interjections.] Or you were there but decided to keep mum during that meeting instead of contributing in the taking of a decision. [Interjections.]

The Portfolio Committee on Labour will be conducting public hearings on youth unemployment in South Africa as a preparation for our input at that conference. We will do this with all the relevant stakeholders, together with the Department of Labour and the Umsobomvu Youth Fund, as a concrete component of this project.

Hon member and you, Lowe, all these gains and brilliant plans … [Interjections.]

Mrs S V KALYAN: Deputy Chairperson, on a point of order: The member should refer to our member as hon Lowe.

Mr B M MKONGI: Thank you very much. All these gains - and these articulations and squealings - are going to be defeated if we do not take tough positions in some instances. We need to penalise companies and institutions that continue to abuse our youth in learnership programmes. Instead of transferring skills to the youth, they use them to work the photocopying machines and to act as coffee waiters and waitresses and lunch- pack messengers.

We need to take a stand against companies that use labour brokers for a readymade workforce, exploit them and if they find that people lack skills they do not train them, they just fire them. We need to take a firm stand against Setas, which are still underperforming and persist in utilising lily-white service providers who continue to disrespect our communities. [Interjections.] [Applause.]

We really need to take a harsh position against companies who disregard our labour laws and Constitution. We must equally take a harsh stand against all those, collectively and individually, who continue to exploit the genuine demands of our workers, who disrespect the Constitution and who themselves engage in acts of violence against ordinary citizens and do malicious damage to public and private property.

We must do this unashamedly to show everyone in this country and elsewhere in the world that “yesterday was a foreign country; the future belongs to us” and that “the future is literally in our hands”. I thank you. [Applause.]

Ms S RAJBALLY: Chairperson, hon Minister, without a second thought, the MF acknowledges the important role that this sector plays in our economy, social development and poverty alleviation; as correctly voiced in the state of the nation address, and I quote:

We need to make the necessary intervention with regard to the first economy to accelerate progress towards the achievement of higher levels of economic growth and development of at least 6%.

The inequalities of poverty place serious pressures on the most vulnerable victims of our people, namely women and children. We have had child labour on our plate for a while. The MF seriously objects to child labour. We feel that at this stage of their lives, education is what the child needs, and should be the main indulgence. However, the reality is that children are forced to work and be the breadwinners of the household. What is to be done in this situation?

Furthermore, the unemployment rate is not 27,8% but 41,2%, if we consider the expanded definition of unemployment. This is serious. The MF shares the concern as to whether we will manage halving this by 2014. However, with a view to the budget allocation of the department, its programmes, divisions and undertakings to address our labour issues, increase employment, and overcome poverty are promising.

The MF briefly wants to express its concern over the protest that took place outside Parliament yesterday and the violence that erupted. The MF strongly feels that strikes of this nature need to be controlled by legislation that will allow strikers room to voice themselves and place necessary pressure on role-players, but that measures need to be taken prior to a strike to ensure that it is peaceful.

Yesterday’s strike was an episode of barbarism that we shall not tolerate. Parties undertaking such strikes need to take responsibility for any damages incurred as a result of such actions. The MF calls on the House and the department to assess and address this situation with all seriousness. We also call on the employers to start recognising the hard work of their employees and start sharing some of the profits that they make for them. Moving back to the budget, the MF agrees on the intensification of skills development, for which we depend strongly on the co-ordination of the Setas. The MF believes that the database of graduates is a great means for attaining employment. Concerns to address issues of vulnerable workers are encouraging, and in the interests of a fair and equitable labour force.

The MF supports the fact that the Department of Labour has drafted great plans and intentions to address labour issues. We now seek the application of funds to put these in motion effectively and efficiently. We do believe if this is done, and with the joint efforts of other role-players, we will have great progress and success in poverty alleviation and employment. The MF supports the Budget Vote. I thank you. [Applause.]

Mufumakadzi T E LISHIVHA: Ndo livhuwa Mudzulatshidulo, Minisita, na mirado yothe ya Buthano la Lushaka. Ndi khou ya u amba nga ha u isa tshumelo kha vhathu, fhasi ha Muhasho wa zwa Vhashumi. Kha ndi thome nga u livhuwa Vho Minisita na muhasho wavho nga ndila ine vha khou lwa ngaho uri tshumelo i ye kha vhadzulapo vhothe vha Afurika Tshipembe nga u angaredza.

Tshumelo heyo, i wanala kha ofisi dze muhasho wa dzi sendedza tsini na vhathu. Ofisi hedzi dzi na vhaofisiri vhane vha thusa vhathu nga ndila ya khwine. Kha mavundu othe, hu na ofisi ya vundu nthihi, nga nnda ha Gauteng, ngauri yone i na mbili. Hu na Gauteng South ine ya vha Johannesburg, na Gauteng North ine ya vha Pretoria. Hu dovha hafhu ha vha na ofisi dza sathelaithi na zwiga zwa u dalela vhathu.

Zwino tshumelo heyo i wanala kha ofisi hedzi dze muhasho wa dzi sendedza tsini na vhathu. Zwinwe zwavhudi ndi zwauri vhashumeli vha hoyu muhasho vha khou vha na tshumisano yavhudi na mivhuso yapo. Arali ra sedza, ri do wana uri hei nyisedzo ya tshumelo kha vhathu, yo dovha hafhu ya wana nyengedzedzo kha Mugaganyagwama wa 2006-07. Yo aluswa nga 0,15% ine ya vha R623 370, ngeno ya nwaha wo fhelaho yo vha i R570 665.

Zwino heyi ndisedzo ya tshumelo, i na mbekanyamushumo thukhu dza rathi. Tsumbo, ndi Tshumelo ya Thikhedzo ya Vhulanguli ine ya vha na mugaganyagwama wa ntha kha dzinwe. Yone yo wana R234 377, zwine zwa amba uri yo engedzedzwa nga 14%, ine ya vha ya u langula na u tikedza ofisi dza mavundu, senthara dza zwa Mishumo na hune ha dalelwa.

Muhasho wa zwa Vhashumi wo disa tshumelo kha vhathu musi u tshi sendedza senthara dza zwa Mishumo tsini navho uri vha kone u wana tshumelo iyo. Ofisi dza senthara dza zwa Mishumo ri dzi wana dzidoroboni na mahayani. Vhathu vha wana tshumelo ine ya nga UIF, Compensation Fund na zwinwe-vho, nga u tavhanya u fhirisa ala maduvha o fhiraho.

Ri a zwi divha zwauri maduvhani o fhiraho, ho vha hu tshi tou vha na vhane vha kona u i swikelela. Sa izwi vhathu vha hashu vho vha vha si na tshelede ya u namela zwiendedzi zwa u ya afho fhethu, vho vha vha sa koni u i swikelela. Muhasho wo ita zwauri hu vhe na zwiga zwine zwa tou tshimbila. Vhathu vha dalelwa kha mivhundu yavho luthihi nga vhege. Heyo ndi yone ndisedzo ya tshumelo. (Translation of Tshivenda paragraphs follows.)

[Ms T E LISHIVHA: Thank you, Chairperson, Minister and honourable members of the National Assembly. I am going to focus on service delivery by the Department of Labour. May I express a word of gratitude to the Minister and his department for the sterling job they are doing regarding the delivery of service to all of the citizens of South Africa.

This service is obtainable from offices that the department has brought closer to the community. Some very helpful officials are placed in these offices. In each province, there is an office. Gauteng has two of them. We have Gauteng North in Johannesburg and Gauteng South in Pretoria. Apart from these, there are also some satellite offices and visitors centres.

This service is available in offices closer to people. It is pleasing to note that officials from this department have good working relationships with local authorities. This service has been allocated an increase in the 2006-07 budget. Expressed in percentages, the increase amounts to 0,5%, which translates into R623 370, compared to the R570 665 of the previous financial year.

This service delivery has six sub-programmes; for example, there is the management support service, which has a higher allocation of the budget. It received R234 377, which is a 14% increase, to manage and support provincial offices, labour centres and visitors’ centres.

The Department of Labour has brought services to people by bringing labour centres closer to them. Labour centres are available in rural and urban areas. People can access services such as the UIF, the Compensation Fund and others. This is better than what happened during the previous regime.

Only few could access these services during the previous regime. This was due to a lack of proper transport facilities. The department has launched some mobile units. People are visited once a week in their communities. This is indeed true service delivery.]

The Compensation Fund has increased by 6,8% since April 2005. To enhance efficiency, the Compensation Fund has trained and appointed medical assessors and presiding officers in all provinces and spent R1,95 billion on claims in terms of the Compensation for Occupational Injuries and Diseases Act in 2004-05, and has more than R14 billion in assets. Employees registered with the Compensation Fund increased from 271 237 to 283 332 by March 2005.

Zwino ndi khou ya u amba nga ha UIF – Unemployment Insurance Fund. Hei ndi ye kale ya vha i tshi vhidzwa u pfi Blue Card, ine mushumi munwe na munwe ane a shuma awara dza 24 kana u fhira afho nga nwedzi, a tea u i wana musi mutholi wawe o mu nwalisa. Mutholi u do badela 1% ngeno mutholiwa na ene a tshi do tea u badela 1% na ene.

UIF ndi ya musi muthu o fhelelwa nga mushumo nga mulandu wa vhulwadze kana a kha maduvha a u ya u vhofholowa na zwinwe-vho. Zwino, hafha kha UIF ri na vhuleme vhune ha nga musi vhathu vhashu vho thomiwa nga malwadze vhe mishumoni ine ya nga ya mabulasini.

Hangei mahayani hune nne nda bva hone, u wana mutholi a tshi hwala muthu a mu isa hayani a swika a mu vhea a namba o tuwa a si tshi dovha a vhuya. Hezwi mushumi hoyo ni tshi ya ni tshi mu vhudzisa, u ni vhudza zwauri vhasa uri u do da a ntolela uri ndi khou vuwa hani. Musi o dzula hayani, u vha sa khou hola kana u wana tshithu.

Zwino ngauri tshumelo i Vhathuni, na mbalo ya vhathu vhane vha da u toda pfanelo dzavho ndi vhanzhi, mbalo i engedzea nwaha munwe na munwe. Ri wana vhathu vha tshi wana pfanelo dzavho nga u tavhanya u fhira maduvha o fhiraho, nahone nyimele yo no khwinisea. (Translation of Tshivenda paragraphs follows.)

[Let me now talk about the UIF, the Unemployment Insurance Fund. This is what used to be called the Blue Card, which any servant working for 24 hours or more per month is entitled to, when registered by his employer. Both the employer and employee contribute 1% each. The UIF is there in case of retrenchment or retirement due to illness, as well as in instances of maternity leave. Problems encountered with the UIF include cases of farmworkers who fall ill while in their respective jobs.

Where I come from, we have cases of employers who come and dump their ill employees at their homes and forsake them there. When asked, these poor employees will express the hope that the employer will come to see them. When dumped at home, they do not even get their salaries or any form of compensation.

Since delivery is people-centred, even the number of people who are looking for services is increasing each year. People can access services more easily than previously. Now the situation has improved.]

The UIF managed to generate R11,824 billion in contributions and paid R4,924 billion to more than 1 million beneficiaries. The department is doing well because they know their commercial employers and workers on the database, as well as their domestic employers and workers. The UIF has registered 476 042 commercial employers and more than 6 million commercial workers.

Ngauri hoyu muhasho u khou shuma, wo ita zwauri na vhashumeli vha mahayani vha sedziwe nga ito la vhuthu nahone vha di pfe na vhone vho vhofholowa kha Shango lavho la Afurika Tshipembe. Inwe ndila ya u khwinisa u netshedza tshumelo kha vhathu, ndi nga u i netshedza nga sisiteme ya elekithironiki. Izwo zwo thomiwa nga nwedzi wa Phando 2006. Zwithu zwo khwinisea vhukuma kha ofisi ya Auditor-General. Hezwi zwi sumbedza uri zwithu zwi khou tshimbila zwavhudi.

Ri a zwi divha zwauri hu na vhane vha kokodza tshelede dza Vhashumi vha fhedza vha sa dzi ise ho fanelaho. Kanzhi zwi wanala musi muthu o no fhelelwa nga mushumo zwauri mutholi o vha a sa badeli. Fhedzi Muhasho u khou zwi sala murahu. Vhathu kha vha itea vha tshi dalela ofisini uri vha thusiwe nga u divha uri vha hone naa kha dathabeisi, na uri ndi ngoho naa uri mutholi wavho o vha nwalisa.

Hu vha na vhuleme musi vhathu vha tshi fanela u wana pfanelo dzavho vha tshi kondiselwa nga vhatholi. Arali ra sedza kha ofisi ya vho Auditor- General, zwithu zwo khwinisea vhukuma. Hu dovha hafhu ha vha na vhatoli vhane vha sedza uri naa vhatholi na vhatholiwa vha khou tevhedza milayo yo teaho naa? Vha dalela vhathu hune vha shumela hone uri vha sedze uri nyimele, tsireledzo na mutakalo zwi nga ndila-de.

Arali mutholi a wanala a sa khou ita zwo teaho Muhasho u do mu dzhiela vhukando, ngauri u vha a sa khou ita zwine wa khou toda zwone. Vhashumi na vhone vha na pfanelo dza u di tsireledza musi vha mushumoni. Vhatholi na vhone vha tea u tsivhudza vhashumi nga fhethu hune ha vha khombo henefho hune vha shumela hone. Ndi na ngoho ya uri na zwenezwo, muhasho u khou lwa uri zwi tshimbile nga ndila ine munwe na munwe a do vha o vhofhololwa - vhukati ha mutholi na mutholiwa.

Zwino Muhasho wa zwa Vhashumi u khou lwela uri zwithu zwothe hezwi zwi khwinisee. Ndi ngazwo muhasho wo ita zwauri hu vhe na zwithu zwi no nga hezwi - zwa u fhata dziofisi na u sendedza zwishumiswa tsini na vhathu uri vha wane vhutshilo ha khwine. Ndo livhuwa. (Translation of Tshivenda paragraphs follows.)

[This department is performing well. It has also benefited the domestic labourers in that they are being catered for in order to feel free in their country, South Africa. Another way of improving delivery was the introduction of an electronic service provision system. This was started in January 2006. Things have improved in the office of the Auditor-General. This shows that all is well.

It is a well-known fact that there are still those employers who deduct monies from their employees’ salaries for their personal gain. These become exposed when people lose their jobs.

These are some of the cases that the employer is trying to trace. People must visit their offices to ensure that their names are kept in the database and also to verify whether they have been registered.

There are some difficulties encountered when employees cannot get what they are entitled to, due to their employers’ failure to effect payments. There is a great improvement in the office of the Auditor-General. There are officials whose duties are to monitor whether both employers and employees are observing some labour regulations. They visit people at their workstations to monitor the state of their health and safety.

If the employer is found to be contravening the regulations, the department will take some steps against him or her. Employees are entitled to the protection of their rights. Employers must also advise their employees about some danger zones in their workplace. I am convinced that the department is also addressing this in a way that will ensure freedom for both the employee and the employer.

The Department of Labour is striving for better service and excellence. It is for these reasons that the department has brought offices and resources closer to the people to ensure a better life for all. Thank you.] I support the Budget Vote. [Applause.]

Mr S SIMMONS: Chair, hon Minister and colleagues, it goes without saying that labour is a pivotal part of the country’s economic and social welfare. It thus stands to reason government has a particular responsibility to create a labour environment that secures long-term unemployment eradication with subsequent socioeconomic spin-offs.

Die arbeidswetgewing wat die afgelope tyd deur die Huis gevoer is, het duidelik teenproduktiewe gevolge vir die vermindering van werkloosheid. Hier is dit veral wetgewing wat minimumlone vasstel, wat tot gevolg het dat werkgewers alternatiewe weë volg om hul arbeidsbehoeftes te bevredig, soos om meer meganiese tegnologie aan te wend eerder as om meer mense aan te stel. (Translation of Afrikaans paragraph follows.)

[The labour legislation that was passed in the House recently clearly has a counterproductive impact on the reduction of unemployment. Here I refer to legislation that determines minimum wages in particular, resulting in employers implementing alternative measures to satisfy their labour needs, such as employing more mechanical technology instead of employing more people.]

The negative effects of this legislation are reflected in the latest unemployment figures. According to the Statistics SA labour force survey there is a marginal increase of approximately 0,5% in unemployment from March 2005 to November 2005. This legislation has the biggest effect on small and medium businesses’ ability to play a positive part in the national objective of creating more jobs, as they are the employers least capable of meeting minimum wage requirements. This is clearly counterproductive for government’s objective with its Accelerated and Shared Growth Initiative programme. It is thus imperative for government to revise this legislation. I question whether the government’s target to halve the unemployment rate by 2014 is a realistic one, given the fact that South Africa would have to grow its gross domestic product by at least 9,3% until 2014, according to certain economists. The only benefit that minimum wage legislation seems to have is to give those people who are already in jobs a sense of job security; the unemployed that has been determined at approximately 8 million has no hope. The United Party of South Africa also has serious concerns relating to implementation of the employment equity legislation and affirmative action.

Hierdie wetgewing is duidelik nou ‘n katalisator vir rassevooroordele. Ek wil spesifiek verwys na die omskrywing van voorheen-benadeelde groepe, oftewel swart Suid-Afrikaners. Die huidige geval by Eskom illustreer dié kwessie heel duidelik. Die wetgewing en gelyke indiensneming gradeer heel tereg nie voorheen-benadeelde groepe nie. (Translation of Afrikaans paragraph follows.)

[This legislation is clearly now a catalyst for racial bias. I want to refer in particular to the definition of previously disadvantaged groups, that is to say, black South Africans. The present situation at Eskom illustrates this issue very clearly. The legislation and equal employment quite rightly do not grade previously disadvantaged groups.]

This practice of differentiating between disadvantaged groups is counterproductive for nation-building and solidarity among South Africans. The United Party of South Africa calls on the Minister to launch an inquiry into the implementation of the unemployment equity legislation in order to prevent further fragmentation of race relations in South Africa. [Time expired.]

Ms H WEBER: Chairperson, let me start off by saying that figures we obtain of the percentage of the unemployed is a cause for concern. For example, according to the latest IDP of the Greater Sekhukhune District Municipality, which incorporates the greater Groblersdal and Marble Hall, they have an unemployment rate of 60% in 2006 compared to the 40% of the previous year. A survey done indicated that the increase of 20% was mostly paid-off farmworkers from this intensive farming area; in many cases a consequence of exorbitant wage bills. I would like to add that there are many, many good farmers and a few bad farmers. [Interjections.]

With 40% unemployment figure, minimum wages are unrealistic; a negotiated liveable wage should rather be paid, because workers’ rights should always be respected. Farmers are now mechanising; machines do not strike, they are always available. In one instance a farmer has replaced 152 workers with a machine, costing R1 million - economically a worthwhile investment, socially a tragedy.

No doubt a minimum wage makes the hon Minister very popular amongst the employed labour force, but a doubt amongst the voiceless unemployed. Moreover, our high crime rate can be directly attributed to unemployment. The DA is accused of not wanting a minimum wage, however, we believe in job creation.

The stringent regulation of labour laws we have now, opened a new profession, namely labour brokers. It has proved a valuable source of obtaining labour, as well as creating employment. These brokers are used by many institutions, from municipalities to farmers. They employ people who cannot get jobs, but want to work. These brokers are probably among the hon Minister’s greatest supporters, as he has opened a gate for a new lucrative industry. On the other hand, these brokers take a percentage of the workers’ wages.

Hon Minister, South Africa is not ready to cope with minimum wages. We are still a developing country with a large second economy, and should not have the labour laws of a highly developed, first-economy country like Germany. These are currently hopelessly outdated to take that country forward in today’s globalised economy.

Hon Mkongi states that nurses’ homes will be reopened. Why were they closed in the first place?

The DA was pleased that the Deputy President mentioned our lack of capacity in her Asgisa presentation, and acknowledged that there are existing skills in the country among the unemployed elderly. [Time expired.]

Mr T G ANTHONY: Hon Chairperson, the hon Minister of Labour, hon Members of Parliament, ladies and gentlemen, I want to queue the line in addressing myself on the question of the acts of violence that happened yesterday in Cape Town. The law-abiding citizens of this country have rights and these rights will be protected. It has always been the culture of the ANC that the rights of our citizens are protected.

I would also like to condemn the acts of violence that took place yesterday. But I think at this point in time we need to make a point with regard to the strike that led to the violence of yesterday. I have learnt that from the DA’s point of view the analysis has not been made. We are merely influenced by emotions, which are derived from reading the newspapers. We cannot stand here and debate on the basis of reading newspapers and getting emotional on this podium. [Interjections.]

I want to put it to Mr Lowe that my colleagues have made it very clear that he must take his time and attend these study group meetings so that he is informed and does not come here and make a noise. He must come here and contribute to the debate that is taking place in this Chamber.

The analysis to the strike that I want to make is that each and every strike that takes place is derived from the process of negotiations, and the Labour Relations Act provides for these processes. From this Act, when disputes arise there is always policy that governs this. There are also those employers in this country who are arrogant and still clinging to the past. [Laughter.][Applause.][Interjections.]

I know and have also learnt that capitalism is driven by greed and profit maximisation. They would not follow the processes of negotiations because they want to make profits in the meantime, whilst the workers are suffering.

I also want to make a point that, as far as I can remember, the Minister of Labour has pronounced himself on the question of the violence and the strike. He has requested the parties to go back to the negotiating tables. I have picked up that the DA is not aware of these negotiations. They are talking about the Minister being silent and so on. It is not true and it is misleading this House.

On 8 May we celebrated our 10th anniversary of the supreme law of this country, the Constitution of the Republic of South Africa. In June, I want to re-emphasise this, in the month of June we will also commemorate the 30th anniversary of the Soweto youth uprising, which was a landmark in our struggle for liberation.

This commemoration will mark this year as The Year of the Youth. As the portfolio committee we will be conducting public hearings to examine the issues related to youth employment and youth empowerment in general. I have also picked up that Mr Lowe is talking about tragedy when a public hearing is to be called to examine the youth issues. Is it a tragedy? I find it very, very hard to believe.

At this stage of the national democratic revolution, it is of vital importance to strengthen our research capacity in determining the extend to which our labour market policies are harmonised with other economic policies which contribute to the objectives of creating work opportunities for all.

Our labour policy and labour market programmes are responsible for creating an equitable and sound labour relations environment, including international labour relations through research analysis and evaluation of policy. Our labour relations promote the establishment of an equitable and peaceful labour relations environment and the support for the CCMA, Commission for Conciliation, Mediation and Arbitration.

For the past 10 years we observed the radical transformation of our legislation and regulations, and in the process, many charters were developed in different sectors and their implementation have been realised. However, the creation of employment in the country remains a challenge for all of us.

The debates unfolding recently with regard to labour market flexibility in this country, or lack thereof, must be located, amongst others, within the outcomes of the research studies made by the Department of Labour in 2004 and the seven research papers currently in the possession of the department.

In principle, no sufficient evidence or outcome is provided, to the effect that South Africa’s labour market flexibility is problematic. However, what seems to exist is that neo-liberalism economists kept the issues of flexibility on their agendas, ignoring all facts found in these researches. If the debate on this issue of labour flexibility continues, it will not seek to establish facts because facts have been established that the labour markets in South Africa are very flexible.

What seems to be a challenge to all role-players within the economic activities in the country is the willingness and effective application of the existing workplace laws and regulations. Furthermore, our labour market policies must be integrated into government’s growth and development strategies. The strategic approach of the Department of Labour to promote a collective multilateral approach to global challenges is one step in the right direction.

The social transition that has accompanied the demise of apartheid has seen a vast increase in labour market participation. The factors underlying this development over the past few years have included an increase in women’s participation in the labour markets, as well as the current trend of migration from poor rural areas to urban areas. The formal and informal economic activities in the country were separated from each other by structural fault. This situation emerged during a long period of colonialism and apartheid and as a result of the deliberate imposition of social, political and economic exclusion of a particular race group by the racist state.

It is on this basis that any proposals to deregulate South Africa’s labour laws would translate into rolling back the gains of the poor and of the workers. In this process of our democratic transformation we will continue to advance the cause of empowering the poor individuals in order to change their lives for the better.

The National Skills Development Strategy will further enhance the participation of small, medium and micro enterprises in skills development. In developing the SMME sectors, attention will be paid to issues of access to capital, entrepreneurial training, assistance with marketing and the development of co-operatives.

Let me come back to the labour market flexibility issue, which I mentioned earlier. It seems some employers want to have the right to utilise labour optimally at the lowest cost. This is their objective. The emphasis is on the right to hire and fire with ease. Hence the element of small or medium enterprise would always surface in these arguments.

Because of the cost factor applied to workers, most employers would like to have few core workers and the rest of the workforce be in flexible terms. This kind of practice is being achieved through casualisation, part-time work and commercialisation - you name it. This situation will always occur mostly in the construction industry.

With regard to the use of labour brokers to supply labour according to production needs, the situation is that the employer has no responsibility for the labour and no relationship with the workforce thereof. The employer has no obligation to ensure compliance with the conditions of employment and legislation. It is a challenge to find out whether the use of labour brokers add value to the economy of this country, and to what extend it impacts on the job creation process.

In conclusion, during our oversight work as a portfolio committee, our overall observation and the overall evaluation from previous expenditure of the Department of Labour and the current strategic plan of the department, clearly reflects the department’s targets and alignment of the Asgisa’s developments.

I therefore believe that the specific budget required will be adequate to advance the implementation of the revolutionary programmes and policies of this government. The ANC will support the Budget Vote. [Applause.]

UMPHATHISWA WEZABASEBENZI: Sithwalandwe, ukuba ixesha bendinalo bendiza kukhe ndithwaxe lo mfo kuthiwa nguMark Louw kakhulu. [Kwahlekwa.] Okokuqala, iPaprika project endithetha ngayo yese Freestate. Mhlawumbi yena ubhidanisa eyase Northern Cape nayase Freestate. Loo nto ibonisa ubuthyifili ke nokungamameli xa kuthethwayo. Okwesibini, asiyo ntetho eza kusombulula olu gwayimbo, asiko kuthetha amazwi amaninzi. (Translation of isiXhosa paragraph follows.)

[The MINISTER OF LABOUR: Hon member, if I had enough time I would figuratively hit this gentleman, Mark Louw, very hard. [Laughter.] Firstly, the Paprika Project I am talking about is in the Free State province. He might be confusing the one in the Northern Cape with the one in the Free State. That clearly indicates stupidity and not being able to listen when things are being said. Secondly, words will not resolve this dispute.]

It is not the many words that are going to resolve the dispute. Words are not going to resolve the dispute. We must condemn the violence, but we must remember that negotiations are still not taking place in earnest. And what is important to me is that those workers, with their employers, must talk and resolve the dispute that they themselves declared. That was not declared by me, nor Mark Lowe. I don’t know why he is taking this dispute to himself.

I want to praise the SA Police Service; I want to praise those workers in South Africa who are working for the SA Police Service. There is no way that a worker should attack another worker. [Applause.] A worker should not attack another worker. Those shops that were stoned and had windows smashed in had workers inside. When they are injured, it is compensation through the same department that must pay and fork out. Therefore it is important for workers to stop vandalising, maiming and killing other workers.

I have said this for exactly eight weeks now. What does it tell you if this hon member says that he never heard me say anything about this? [Interjections.] Let me leave him for a moment. Maybe he has his own problems. Hon Lowe, we are not going to make the labour law rigid and inflexible.

The TEMPORARY CHAIRPERSON (Mr A Mlangeni): You have a point of order?

Mr C M LOWE: Yes I do, Mr Chairperson.

The TEMPORARY CHAIRPERSON (Mr A Mlangeni): Please go ahead.

Mr C M LOWE: Thank you very much. I wonder if the hon Minister would be kind enough to take another question from me. [Interjections.]

The MINISTER OF LABOUR: Ndinqwenela ukuqhuba nentetho yam Mhlalingaphambili, andinaxesha lalo mfo. Uyayazi into yokuba … [I would like to continue with my speech, Chairperson. I don’t have time for this gentleman. He knows that …]

… violence is not legalised in this country.

Yiyo le nto amapolisa athe abhexesha aba basebenzi kungenxa yokuba ubundlobongela abuvumelekanga kweli lizwe loMzantsi Afrika. Uyithatha phi into yokuba … [Police beat them because acts of violence are not acceptable in South Africa. Where does he get that …]

… we are legalising violence in South Africa? Where is he getting that from?

Loo nto ke okokuqala, ibonisa obu buduphunga ndithetha ngabo. Okwesibini,ndifuna ukumfundisa lo mhlekazi kunye nalaa mama kuthiwa ngu- Weber ebethetha apha lo mthetho kuthiwa yi-Labour Relations Act. Mhlekazi uthi lo mthetho: [Firstly, that indicates the stupidity I was talking about. Secondly, I need to educate this gentleman and Ms Weber about the Labour Relations Act. Sir, this Act states that …]

… workers have a right to strike, and employers have the recourse to lock them out. For now, as we speak – let me speak in your English, even though my English is not perfect … [Interjections.]

Ngiyabonga. [Thank you.]

Ungabongi kakhulu, ngoba ndiza kuguquka ukhe wenza njalo apha. Ndizalelwe kuQoboqobo kaloku mna, andizalwanga eNgilane. [Don’t thank me too much because I will turn and deal with you accordingly if you do that. I was born at Keiskammahoek, as a matter of fact. I was not born in England.] [Laughter.]

Employers have taken the recourse of a lockout. There is a lockout there, and the workers are on strike.

Kwaye loo nto ithetha ukuthi ke, mhlekazi, ziye kuma etyeni ngoku phaya. Thina ke singamalungu ePalamente kufuneka sizame ukucengana nabaqeshi. Wena kuba uvana nabo, bezitshomi zakho uze uthi mabancede babheke etafileni, baye kuthetha nabasebenzi. Thina ke nto zibazi abasebenzi ngaphezu kwakho masicengane nabasebenzi babheke etafileni baye kuthetha nabaqeshi, kusonjululwe le nto ngoba sele kucacile ukuba nokuba bangayityhala iyokuma etyeni okanye esikhaleni kwaNtombela asoze iye ndawo le nto, ngoko ke masizame ukulamla. Okwesibini, phaya kwi…. (Translation of isiXhosa paragraph follows.)

[And that, Sir, means that things have come to boiling point. As Members of Parliament, we should try and negotiate with employers. If you are friends with them, please ask them to go to the negotiating table. Those of us who know a lot about workers’ matters should plead with the workers so that the matter could be resolved, as it has become clear that no matter what they do, there shall be no resolution to this. Let us employ all resources to settle the matter. Secondly, in the …]

… dispute resolution, which is chapter 7 of the Labour Relations Act. You know it is very, very clear: It says the commission – that is the CCMA – must attempt to resolve, through conciliation, any dispute referred to it in terms of this Act. And, it goes further: It says the commission may, if asked, advise the party. The commissioner may, if asked, assist a party. The commissioner may offer to resolve a dispute. Nowhere is the Minister mentioned here. [Applause.] I am not supposed to intervene in wage negotiations. This is the flexibility of the Labour Relations Act, Sir. It’s chapter 7, page 112, Sir. [Interjections.]

Mr C M LOWE: Mr Chairperson?

The TEMPORARY CHAIRPERSON (Mr A Mlangeni): Is that a point of order, Sir?

Mr C M LOWE: Yes, it is indeed, Sir. I wonder if I could, just on a point of order, thank the Minister for the education he is trying to give me and ask him once again, with great respect, if he will accept a question from me? [Interjections.]

The TEMPORARY CHAIRPERSON (Mr A Mlangeni): Members, I can’t hear. I didn’t hear what the point of order was because you are making a noise. Could you repeat your point of order, please?

Mr C M LOWE: Thank you, Mr Chairperson, I will indeed. On a point of order: I would like to thank the hon Minister for giving me this information, but, in the same breath, could I ask him once again if he would kindly take a question from me? [Interjections.] The MINISTER OF LABOUR: Page … Section 150 …

Mr C M LOWE: Mr Chairperson, why won’t he answer a question?

The TEMPORARY CHAIRPERSON (Mr A Mlangeni): Hon Minister, will you take a question?

The MINISTER OF LABOUR: Niya kuchitha ixesha lam, Mhlalingaphambili. mna ndifuna ukuthetha nesizwe. Ukuba ufuna ukundibuza umbuzo masiphume siye kuphunga apha phandle undibuze umbuzo ke. [You are going to waste my time, hon Chairperson. I want to address the nation. We could go out for tea if he wants to ask me any questions.] [Laughter.]

Section 150 of the Labour Relations Act says that the commission may offer to resolve a dispute through conciliation. This is exactly what the CCMA has offered. This is exactly what it has offered! I’m answering even before you ask the question, so don’t worry.

Sinoxanduva thina emagxeni ethu, yiyo le nto singanqakuziyo njengaye. Kulula ukubhibhidla amazinyo kuba olu gwayimbo aluzi kusonjululwa zezi ntetho sele ndizichazile. Njengokuba kukhona uvukayo wena mhlekazi, thina kudala sifunana neqwili. Xa unalo ke wena yiza nalo ngaphambili. Uyeke ukuza kwenza ingxolo apha ngoba asoze isise ndawo. Ndiyabulela Ndabezitha. Sibulela kakhulu ngokuthi …] (Translation of isiXhosa paragraph follows.)

[We realise that we have a huge responsibility, and that is the reason why we are treading carefully. It may be easy to just talk but we need to realise that all the things I have cited earlier will not resolve the dispute. You should realise that while you have just woken up, we have long been looking for a remedy. We would appreciate it if you could bring it forth, if you have it, and stop making noises that will not take us anywhere. Thank you, Ndabezitha. We thank you for …]

Mr C M LOWE: Madam Speaker, may I address you on a point of order?

The SPEAKER: Order, hon Minister. There is a point of order.

Mr C M LOWE: Thank you, Madam Speaker. On a point of order: Could I say to the Minister that I do have a response for him, I do have a solution? Could I, with respect, ask him to take a question? [Interjections.]

The SPEAKER: No, hon member that is not a point of order. Please!

The MINISTER OF LABOUR: Uyayazi loo nto yokuba … [He knows that …]

… it is not a point of order …

… ibonisa laa nto besele ndiyichazile ngaphambili. Siyabulela Ndabezitha kakhulu ngokuthi uwakhalimele amaphakathi akho ukuba ayeke ubundlobongela, ngoba abuzi kuyisombulula le ngxaki. [It indicates that which I said earlier. Thank you, Ndabezitha, for condemning the activities of your comrades, because violence will not solve this problem.]

I want to thank all the hon members here today. But I do want to say to Mr Simmons: There is no national minimum wage in South Africa. Maybe you are confusing it with something else, but I don’t have the time now, at least, to assist you in your confusion. If there was a national minimum wage in South Africa, I’m sure the hon members here would be receiving the national minimum wage. But there is no national minimum wage in South Africa. None. And even if you look at that sectoral determination, it varies from one point to another point. It’s not a national minimum wage.

For your information, farmers themselves are saying that they want one wage. It is the farmers who are currently demanding a minimum wage. But I cannot comply, because the Basic Conditions of Employment Act does not allow me to. Why are you demanding inflexibility of the Labour Law? Why are you demanding that we make the labour law rigid? Please! It is good as it is. Don’t make it more rigid, Sir. It is good now as it is. So don’t make a demand like that. It is very, very important.

I agree, though, with hon members that during my time as president of the SA Democratic Teachers Union, when our members led by me made a mistake, a blunder, or there was violence, I used to stand up and say, “Nee, dit is nie reg nie.” [No, that’s not right.]

Nimosha umzabalazo wethu nina bangababangi bobundlobongela. [You are spoiling our struggle, you perpetuators of violence.]

For that matter I used to visit that area. Teachers in Soweto know me. Even during the night I used to go there and meet those who continued to deny national leadership. This is the advice I am giving, because the moment a worker starts beating up another worker, you have lost the cause. Read the red book, and I’m sure hon Mtshali can assist you. He may have a copy of Mao’s book that can assist a lot of our workers in this regard, because this is very important. We cannot start beating up other workers.

Ngumzekelo endiwunikayo ke ukuthi … Siyabulela Mama uRajbally ngokugxeka ubuntswela nkcubeko. Ndibulela kakhulu kula maqabane. Mkhongi mntakwethu, undikhumbuza ngelaa xesha wawusellilungu likaCosas. [I am citing that as an example to … Thank you, hon Rajbally, for condemning barbarism. I appreciate these comrades’ contribution. Hon Mkhongi, my brother, you remind me about the time when you were still a member of Cosas.]

You have made me so proud and so excited.

Xa ndijonga isiphumo somsebenzi wezandla zam. Ndaziva ndinelunda, ndikhukhumele, ngoba undikhumbuza elaa xesha … [I look at what has transpired as a result of my contribution to the struggle for liberation and feel very proud because you remind me …] [Applause.]

… of when you used to be a young lion that used to roar, and you were roaring from this platform. Thank you very much, Sir. And, indeed, we will be harsh on the Setas that are not performing. Thank you very much for asking us to be, and indeed we will be harsh on employers who do not comply with the law. Thank you very much for saying we must roar all over this country, and make sure that all employers comply with the law. Thank you very much. [Applause.]

Debate concluded.

The House adjourned at 18:10. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS



                        MONDAY, 3 APRIL 2006

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Safety and Security

 (a)    Agreement between the Government of the Republic of South Africa
     and the Government of the Republic of Uganda on Police Co-
     operation, tabled in terms of section 231(3) of the Constitution,
     1996.

National Assembly

1. The Speaker

 a) Request from the Ministry for Justice and Constitutional
    Development for the National Assembly, in terms of section 193(5)
    of the Constitution, to recommend candidates from the nominations
    submitted for appointment by the President to the Commission for
    Gender Equality.


    Referred to the Ad Hoc Committee on Filling of Vacancies on the
    Commission for Gender Equality for consideration and report.

                        FRIDAY, 7 APRIL 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Draft Bill submitted in terms of Joint Rule 159


    (1) Sectional Titles Amendment Bill, submitted by the Minister for
       Agriculture and Land Affairs on 30 March 2006. Referred to the
       Portfolio Committee on Agriculture and Land Affairs and the
       Select Committee on Land and Environmental Affairs.

National Assembly

The Speaker

1. Referrals to committees of papers tabled

 1.     The following papers are referred to the Portfolio Committee on
    Finance:


    (a)      Government Notice No 115 published in Government Gazette
         No 28469 dated 3 February 2006: Determination of the daily
         allowance in respect of meals and incidental costs for purposes
         of the Act, 1962 (Act No 58 of 1962).
    (b)      Government Notice No 177 published in Government Gazette
         No 28550 dated 24 February 2006: Fixing of rate per kilometer
         in respect of motor vehicles for the purposes of section
         8(1)(b)(ii) and (iii) of the Income Tax Act, 1962 (Act No 58 of
         1962).

2.      The following paper is referred to the Portfolio Committee on
    Public Works for consideration:

      a) Strategic Plan of the Department of Public Works for 2006-2010.


3.      The following paper is referred to the Portfolio Committee on
    Health:


    (a)      Co-operation Agreement between the Government of the
         Republic of Tunisia and the Republic of South Africa on Public
         Health and Medical Sciences, tabled in terms of section 231(3)
         of the Constitution, 1996.

4.      The following paper is referred to the Portfolio Committee on
    Correctional Services:

    (a)      Report of the Judicial Inspectorate of Prisons for 2005-
         2006 [RP 27-2006].

TABLINGS

National Assembly and National Council of Provinces

1. The Minister for Justice and Constitutional Development (a) Report on withholding of remuneration of Magistrate M S Makamu, a magistrate at Benoni, in terms of section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).

2. The Minister of Environmental Affairs and Tourism

 (a)    Government Notice No 231 published in Government Gazette No
    28620 dated 14 March 2006: Invitation to interested persons to
    submit names to fill vacancies on the Board of South African
    Weather, in terms of the South African Weather Service Act, 2001
    (Act No 8 of 2001).
 (b)    Government Notice No 232 published in Government Gazette No
    28620 dated 14 March 2006: Invitation to interested persons to
    submit names to fill vacancies on the Board of South African
    National Biodiversity Institute (SANBI), in terms of the National
    Environmental Management: Biodiversity Act, 2001 (Act No 10 of
    2004).


 (c)    General Notice No 425 published in Government Gazette No 28636
    dated 20 March 2006: Draft policy on the Allocation of White Shark
    Cage Diving Permits and the Management of White Shark Cage Diving
    Industry for Public Comment, in terms of the Marine Living
    Resources Act, 1998 (Act No 18 of 1998).

1. The Minister of Water Affairs and Forestry

 (a)    Report and Financial Statements of Bloem Water for the year
    ended June 2005, including the Report of the Independent Auditors
    on the Financial Statements for the year ended June 2005.

TUESDAY, 11 APRIL 2006

ANNOUNCEMENTS

National Assembly

The Speaker

1. Submission of Private Members’ Legislative Proposals (1) The following private member’s legislative proposal was submitted to the Speaker on 29 March 2006, in accordance with Rule 234:

     (a)  Constitution Fifteenth Amendment Bill (Mr J H van der    Merwe)
   
     In accordance with Rule 235 the legislative proposal has been    referred to the Standing Committee on Private Members’ Legislative    Proposals and Special Petitions by the Speaker.
   

COMMITTEE REPORTS

National Assembly

1. Report of the Ad Hoc Committee on Auditor-General on Budget and Strategic Plan of the Office of the Auditor-General 2006/07, dated 30 March 2006:

   The Ad Hoc Committee on Auditor-General, having considered and examined the Budget and Strategic Plan of the Office of the Auditor- General 2006/07, referred to it, reports that it has concluded its deliberations thereon.

2. Report of the Ad Hoc Committee on Auditor-General on Annual Report of the Auditor-General 2004/05, dated 30 March 2006:

   The Ad Hoc Committee on Auditor-General, having considered and examined the Annual Report of the Auditor-General 2004/05, referred to it, reports that it has concluded its deliberations thereon.

3. Report of the Portfolio Committee on Defence on an Oversight visit to the Democratic Republic of the Congo, dated 14 March 2006:

   The Portfolio Committee on Defence, having undertaken an oversight visit to the Democratic Republic of the Congo on 12 to 13 Oct 2005, reports as follows.

   A. EXECUTIVE SUMMARY

   The Democratic Republic of the Congo (DRC) is abound with natural resources, but the enormous size of the country, the poor transport and communication infrastructure, as well as the political instability are impediments to economic growth. The delegation [Appendix B] met with several persons [Appendix C] to establish the impact of the contributions of the South African National Defence Force (SANDF), specifically, and South Africa, in general, to the United Nations’ Peace Mission in the Democratic Republic of the Congo (MONUC)[see Appendix D – MONUC Force, Appendix E – History of the peace process]. It visited the SANDF contingent in Kindu (eastern DRC) and the MONUC headquarters in Kinshasa (western DRC). (For abbreviations used in this report, see Appendix A).

   The SANDF, as South Africa’s ambassadors in uniform, is meeting the challenge and has earned the respect of the local population and the international community. Even though only the negative stories (alleged sexual misconduct of a few soldiers) make headlines in South Africa, the deployment is achieving its goals, ie providing a secure environment for elections, training of the Forces Armees de la Republique Democratique du Congo (FARDC), ie the DRC Defence Force and demobilisation of other combatants.

   There are however financial, political and technical challenges that need to be addressed to ensure that the DRC has successful elections in June 2006, which will put the DRC on the road to political stability and eventual economic prosperity.

   Ambassador W Swing, Special Representative of the Secretary-General of the United Nations (UN), who heads MONUC, expressed his gratitude to the SANDF and President Mbeki for the contribution that South Africa is making in bringing stability to the DRC. He also expressed his condolences for the human losses [1] that South Africa suffered as part of MONUC. Gen Kisempia, Chief of the General Staff (DRC Armed Forces) was also appreciative of the contributions of SA to the peace process in DRC. He stated that SA was the “father of transition in the DRC”.

B. MAIN FINDINGS

   1. The SANDF contributes positively to the peace process in the DRC
      and has good relations with the FARDC, other MONUC contributors
      and the local population. It is quite involved with the local
      community and has contributed (financially and in kind) to church,
      orphanage, school and sport field facilities.
   2. The terms and conditions of the Memoranda-of-Understanding (MOU)
      between South Africa and the United Nations needs to be reviewed.
   3. The incidences of sexual exploitation and sexual abuse by SANDF
      members are not widespread, but can impact negatively on the
      overall performance of the SANDF.
   4. The strict application of the ‘standard of force agreement’ (SOFA)
      between South Africa and the DRC has a detrimental effect on the
      provisioning of supplies and personnel to the operational areas.
   5. The drawn-out procurement process of the Department of Defence
      prevents the timely supply of goods and equipment, which impact
      negatively on the maintenance and repair of equipment, especially
      vehicles and generators, as well as the morale of personnel.
   6. The poor communication and transport infrastructure of the DRC
      make the execution of MONUC’s mission difficult and strenuous on
      humans and machines.

C. THE DEMOCRATIC REPUBLIC OF THE CONGO (DRC)

  1.    Geography
      The DRC is bordered by nine countries [2], which make it the
      economic and political center of gravity of Africa. This makes
      political and economic stability in this country imperative for
      peace in the region and the continent. It has immense natural
      resources [3] and a land area of 2,3 million m², ie four times the
      size of France, or 213 times the size of Kosovo, and the same size
      as South Africa and Namibia combined, which received a UN peace
      mission of 45 000 personnel which included NATO to protect 2
      million people, whilst the DRC with 60 million people received a
      peace mission of 16 700 personnel.


  2.    Political process
      The DRC and five regional countries signed the Lusaka Ceasefire
      agreement [4] in July 1999. The Transitional Government was
      installed on 30 June 2003 to prepare for elections in two years,
      but the Transitional Government can be extended by 6 months for a
      maximum of two occasions. It did not meet the initial deadline for
      elections and was extended to 30 June 2006.

D. MONUC

   1. Mandate
      MONUC was created on 30 November 1999 by UN Security Council
      Resolution 1279. This mandate, under Chapter VI of the United
      Nations Charter, also known as peacekeeping, excluded the use of
      force, as it only authorised the monitoring of violations of the
      peace agreement. The total strength of MONUC was 90 personnel, who
      had to liaise with the different signatories to the peace
      agreement.

      In March 2005 MONUC's mandate was upgraded by UN Security Council
      resolution 1592 [Appendix F] to a Chapter VII of the United
      Nations Charter [see Appendix G], which allowed the use of force
      to protect the political process and civilians under imminent
      threat of physical violence. Its 2005/2006 budget is $US 957,8
      million and it has personnel of 16258 [5]. The mandate of MONUC is
      renewed periodically by the UN Security Council, which can end,
      extend or change the mandate. The current mandate is due to end on
      1st October 2006.


      The main goals of MONUC are (a) to maintain stability for the
      elections and (b) to establish general peace and security through
      the ‘disarmament, demobilisation and reintegration’ (DDR) and
      ‘disarmament, demobilisation, rehabilitation, repatriation and
      Reintegration’ (DDRRR) processes. MONUC has to ensure the success
      of the largest elections that the UN would be monitoring,
      consisting of an estimated 26,3 million voters. It would be the
      DRC’s first elections in 45 years. The DRC represents a
      humanitarian challenge [6] to MONUC and the world.

      The objectives of MONUC are:
       1. Support to the DRC Defence Force  (FARDC) with the DDR and
          DDRRR of former combatants.
       2. Assistance with the election registration process.
       3. Assistance with the integration of former combatants into the
          FARDC.
       4. Assistance to the Transitional Government to maintain a
          secure environment for democratic elections.

      MONUC has headquarters in Kinshasa, 15 field offices, 3 regional
      offices, 5 military headquarters and 4 logistical bases. MONUC’s
      task is complicated by the relatively small force, the poor
      infrastructure and the lack of aeroplanes and helicopters, which
      are the preferred mode of transport, because in some areas even
      off-road vehicles are incapacitated.

  2.    Arms embargo
      The arms embargo was imposed through Resolution 1493 in 28 July
      2003. It is difficult to monitor, because (a) the bad roads make
      many areas inaccessible, (b) numerous unmonitored airfields are
      used by certain private aircrafts for illegal purposes, (c) no
      effective border control, (d) appropriate resources are lacking to
      monitor the movement of people and vehicles, i.e. (i) aerial
      surveillance and (ii) UN aircrafts and (e) the illegal mining
      activities of the militia elements lead to increased illegal
      movement equipment and weapons.

  3.    The DRC Defence Force
      The FARDC experiences several challenges, ie
      o Unification & espirit de corps.
       o Lack of government support, especially logistical and
         financial.
       o Misconduct & discipline.

      The FARDC has to assist with stabilisation, but it did not yet
      have the capacity to deal with the FAGs (foreign armed groups),
      which includes FDLR. One of the key objectives of MONUC is to
      support and capacitate the FARDC, apart from providing support for
      the elections. The FARDC has limited resources and are supported
      by MONUC to a limited extent with logistical resources such as
      ammunition, food, fuel and transport. The DRC soldiers do not
      receive regular salaries currently, which contributes to
      instability. Non-payment of salaries also applies to other public
      servants, eg teachers who were on  strike for the last three
      weeks. The situation is worse in the rural areas and is
      exacerbated by the fact that payment is made in cash, ie out of
      the hand, which can lead to corruption and the self-enrichment of
      senior officials.


      The FADRC can perform limited operations successfully, however,
      some elements in the FARDC have been extorting money from the
      local communities by setting up roadblocks, because they do not
      receive wages regularly from the government and in some instances
      indulging in looting, killing, and raping civilian populations.

E. DDRRR PROCESS

  1.    Contribution of South Africa

      1.1     Operation TEUTONIC


      Operation Teutonic is a tripartite agreement between South Africa,
      Belgium and the DRC. According to a MOU between South Africa and
      the DRC, the SANDF would assist with the demobilisation,
      integration and training of the new DRC armed forces and to assist
      the Netherlands with the construction and management of two
      ‘demobilisation’ sites in the DRC. Transit camps were established,
      but no insurgents have yet been registered. According to a
      separate agreement between SA, DRC and Netherlands, the
      Netherlands government has provided 5 million euros for that
      purpose. It was believed that the DDRRR process at the current
      rate would not reach the deadline.


      The initial strength of the South African Detachment Assisting
      with Integration & Training (SADAIT) was 19 personnel (Teutonic
      1), but increased to 39 personnel (Teutonic 2).


      Operation Teutonic announced seven assembly points for
      demobilisation and integration over the radio and in the
      newspapers. 15 607 combatants were disarmed between September 2004
      and April 2005, of which 4395 were children. However the personnel
      register is non-existent, which made budgeting, administration and
      planning difficult.

      One of the main challenges is that the procurement process of the
      SANDF is lengthy with the result that equipment (eg tents) does
      not arrive, when the soldiers need it. The procurement process
      entails the adherence to certain guidelines, eg the Public Finance
      Management Act (Act 1, 1999), however, the process ignores the
      fact that the SANDF is not operating in a classical peace-time
      role.

      1.2     Other Projects


      South Africa is involved in numerous projects to assist the DRC to
      rebuild the country. The Government of the Netherlands has funded
      some of these projects. South Africa’s Department of Public
      Service and Administration is assisting with a census to
      accurately determine the size of the public service in the DRC,
      which would assist to address the issue of ‘ghost workers’. South
      Africa’s Home Affairs department is assisting with population
      registration to enhance effective planning and service delivery,
      while the Departments of Defence and Safety & Security are
      assisting with the training of soldiers and police, respectively.
      South Africa is also assisting with the identification,
      verification and control of the FARDC, because it was important
      for the DRC government, military planners, neighbouring states and
      the UN to know the strength of the armed forces. It is estimated
      that there are 250 000 combatants in the FARDC.

  2.    Three-pronged approach to DDRRR


      MONUC applies a three-pronged strategy to DDRRR, ie (a) political
      pressure, (b) robust military measures and (c) justice system.

      2.1     The Political Process


      Rwanda indicated that those combatants that were under the age of
      14 years, during the genocide in 1993/4, would not be prosecuted.
      The Force Democratique pour le Liberation du Rwanda (FDLR), ie the
      ‘rebels’ renounced violence and agreed to the DDRRR process,
      including the denouncement of the 1994 Rwandan genocide. However,
      since June 2005, a rift has appeared in the FDLR leadership, which
      led to infighting in the South Kivu area.


      The UN believes that the large majority of the FDLR supports the
      peace process, but that some of the hard line commanders hold the
      younger fighters, who want to return to Rwanda, hostage. These
      commanders fear retribution, because they face prosecution for the
      Rwandan genocide in which 800 000 ethnic Tutsis and moderate Hutus
      died. It is estimated that there are 12 000 to 15 000 Rwandan Hutu
      rebels with 30 000 to 40 000 dependants, mostly wives and
      children, in the DRC.
      2.2     Military pressure


      The objectives of military pressure on the rebel forces are (a)
      the security and safety of the population and (b) to ensure a
      controlling presence in areas that are held by foreign groups.
      MONUC has certain constraints, ie
       1. Absence of adequate mapping, which make the planning of
          missions difficult.
       2. Lack of accurate intelligence on FDLR positions.
       3. Insufficient operational capacity of the DRC armed forces.
       4. The DRC armed forces has poor to no logistical and
          operational support.

      2.3     The Justice System


      MONUC and the Transitional Government place pressure on the FDRL
      through the justice system, which entails (a) increased co-
      operation with the International Criminal Tribunal for Rwanda
      (ICTR) and (b) the establishment of extradition between the DRC
      and other countries to bring certain former combatants to book.

Table. 1 (DDRRR Repatriation, as at 10 October 2005) | |Ex-combatants |Civilians |Total | |Rwanda |3 930 |3 710 |7 640 | |Uganda |388 |239 |627 | |Burundi|Assisted by |355 |124 |479 | | |MONUC | | | | | |Self-organised |3 605 |124 |3 729 | |TOTAL |7 837 |4 021 |11 858 |

F. ELECTIONS

  1.    Voter Registration


      The mandate of MONUC includes support to the Transitional
      Government and the Independent Electoral Commission, organise the
      general and presidential elections.
      The election registration process [8] started on 20 June 2005 in
      Kinshasa with 16 million people registered, as at 10 October 2005
      and referendum is planned for 18 December 2005. Elections are
      planned for June 2006. The population of the DRC is approximately
      60 million and the electorates are estimated at between 26 and 28
      million, because a census was not done for the past 40 years.

      The voter registration process also had certain difficulties:
       a) The proficiency of the Independent Electoral Commission (IEC)
          personnel.
       b) Problems to deliver the registration kits and supplies,
          because of the poor transport infrastructure.
       c) Difficulties to deliver administrative and technical support
          to personnel (eg payment of salaries).
       d) The weak to no capacity in the country to run an election
          process, taking into account that the last elections were 45
          years ago.
       e) Funding shortages - The UN requires US$270 million for the
          elections, US$103 million for logistics and US$48 million for
          electoral security, but the pledges from international donors
          are not enough and a shortfall of US$251 million was
          registered.

  2.    Electoral security concerns


      There are four concerns:
        o The MONUC force is limited in numbers and is focused in the
          eastern areas.
        o The DDRRR process has to deal with 8 000 to 15 000 foreign
          combatants.
        o The DDR process has to deal with 250 000 combatants.
        o The security plan will cost US$48 million.

      The FDLR was not considered a threat to the elections, because (a)
      they were concentrated in the eastern areas, (b) its leadership
      came from Europe to mobilise political support prior to the
      elections and (c) MONUC forces will stabilise the main areas, even
      though it is impossible to secure all the strewn-out villages. The
      FDLR might provide a challenge in certain areas, because (a) it is
      suspected that there might be elements in the Tanzanian
      government, which support certain factions of the FDLR, however,
      there is no supporting evidence and (b) the eastern area is
      flooded with weapons.

G. THE SANDF CONTINGENT

   1. Function


      The SANDF battalion [9] is used (a) for force projection, (b) for
      the extraction of UN personnel and (c) as dedicated air assets
      with 3 hours lead-time. The SANDF also assists with the operations
      of the lake-ferry [10], destruction of unexploded ordnances, as
      well as ammunitions and weapons that were surrendered. The SANDF
      is reliant on accurate intelligence in the operational area to
      achieve its mission objectives, however they do not collect their
      own intelligence, but is part of the intelligence network of MONUC
      with the FARDC. The network of MONUC is however weak, because it
      does not have the finances to maintain sources in the local
      community, nor the technical and expensive equipment to gather
      intelligence, due to the non-involvement of the big countries.

  2.    Logistics


      The SANDF battalion operates over a large area in a country that
      has poor infrastructure and forward areas can only be reached by
      helicopter. The battalion (about 800 soldiers) does not have the
      required number of skilled personnel (eg engineers) and transport
      platforms (especially airlift) to move supplies over long
      logistical lines. It sometimes takes three weeks to reach Goma and
      Beni in the eastern DRC, where the SANDF battalion is deployed.
      These units are more than 2 000 kms from Kinshasa, which is in the
      western DRC.


      According to a memorandum-of-understanding between South Africa
      and the United Nations (UN), the SANDF would be self-sufficient,
      ie a ‘wet lease’ arrangement. The SANDF has to maintain and repair
      its own equipment to serviceable levels in order to receive
      funding (ie reimbursement) from the UN. It is difficult to
      maintain equipment in the harsh climatic conditions, poor
      infrastructure, long procurement process and poor local population
      (who steal much-needed equipment for their own use).

  3.    Discipline


      The contingent is under the discipline  of the administrative
      command of the SANDF, but  under the operational control of the
      UN, which impacts on the payment of SANDF salaries and UN
      allowances , the  implementation of UN curfews, fraternisation and
      ‘sexual exploitation & abuse’ policy. In certain quarters, there
      are some grey areas, with regard to the understanding of
      fraternisation with the local community, which does not
      necessarily include sexual activities.

      The SANDF contingent receives regular visits from South African
      interest groups, including the Ministry, Inspector-General and
      senior commanders of the SANDF. It was stated that the deployed
      soldiers would receive Christmas gifts from a corporate sponsor.
      The delegation was informed that soldiers have an open platform
      during visits, so that they can raise issues.

  4.    Challenges


      The SANDF has several challenges, ie
       1. Compliance with the MONUC MOUs
        -     The MOUs are enforced even when the requested tasks and
          location change. It overstretches the limited resources
          (equipment, financial and human) of the SANDF.
       2. Meeting ‘contingent owned equipment (COE) standards’
          -  The SANDF cannot maintain the serviceability of its
          equipment, due to the non-arrival of supplies and spares from
          South Africa. The SANDF then forfeits the UN’s re-imbursement
          (based on the ‘wet lease’ agreement), which places its
          credibility and performance at stake.
       3. Keeping to the ‘standard of forces agreement’ (SOFA)
        -    Liaison should be done well in advance for traveling, but
          due to sudden itinerary changes, landing rights and flight
          clearances are not approved by the UN for military and the
          DRC for civil flights. This impacts negatively on the
          transport of  personnel and supplies.
       4. The execution of command and control
  -     The SANDF is administratively (ie command) responsible for its
          soldiers, but they are under the operational control of
          MONUC. This sometimes leads to conflict between SANDF and UN
          commanders.
       5. Image of the SANDF
          -  The SANDF, as representative of South Africa in the DRC,
          should conduct itself professionally on and off duty, but it
          sometimes does not occur.

H. SEXUAL EXPLOITATION AND ABUSE (SEA)

  1.    The Investigative Office
      MONUC established the ‘Office for Addressing Sexual Exploitation
      and Sexual Abuse’ (OASEA) unit to address the many violations of a
      sexual nature that plague the peace support mission. The UN unit
      investigated 110 cases of alleged sexual exploitation and abuse,
      involving soldiers, police and civilians since December 2004 to
      October 2005.


      Of the 95 soldiers investigated, 30 (or 32%), were South African.
      The OASEA substantiated the allegations in respect of 8 SANDF
      members. Two cases are in the process of being finalised by the
      board of inquiry. Eight SANDF members (1 officer, 1 warrant
      officer and 6 NCOs) were repatriated to South Africa on
      disciplinary grounds for sexual exploitation and abuse. Eight
      allegations involving possibly 15 soldiers have been forwarded to
      the Office of Internal Oversight Services (OIOS), which took the
      investigative function from the OSEA.


      When this process is completed the documentation is forwarded to
      the Department of Peace Keeping Operations (DPKO) at the UN
      headquarters in New York. The DPKO forward the record of
      proceedings of the cases’ investigations, of which the allegations
      are substantiated, to the Permanent Mission of the relevant
      country with a request that it be forwarded to the national
      authorities for appropriate action. The investigative process (ie
      preliminary investigation and board of inquiry) of the UN was
      administrative in nature, because the relevant defence force
      imposes punishment.


      Many cases remained unsubstantiated because of: (i) a lack of
      evidence or witnesses and (ii) the long time between the alleged
      event and the completion of the judicial process. Four new cases,
      involving 7 SANDF soldiers were received, but it has been referred
      to the OIOS. It was stated that the OSEA and OIOS received the
      fullest support and co-operation from the SANDF leadership.

  2.    MONUC Code of Conduct


       Some soldiers blame their transgressions on a lack of
       understanding of the code of conduct on ‘sexual exploitation and
       sexual abuse’ [11] and the issue of ‘consensual’ relationship
       with the local population. OSEA and the UN have placed the
       responsibility and accountability on commanders to ensure that
       peacekeepers do not contribute to the instability. The poor
       socioeconomic conditions and the uneven power relations [12]
       between the locals and the peacekeepers create the opportunity
       for sexual exploitation and abuse.


       The SANDF Force Commander stated, however, that the code of
       conduct was clear and precise, with no room for
       misunderstanding. The SANDF was not allowed outside the barracks
       during certain hours or with civilian clothing. He and the rest
       of the MONUC leadership have imprinted on the soldiers that as
       peacekeepers, they should have higher moral standards, because
       they have been deployed to protect and not to destabilise the
       local community.

I. RECOMMENDATIONS

 1. The Memoranda-of-Understanding (MOU) between South Africa and the
    United Nations should be reviewed in the context of MONUC’s changed
    mandate, as well as the socioeconomic conditions of the locals, who
    vandalise SANDF equipment.
 2. Discipline should be strengthened, so that SANDF members adhere to
    the UN’s code of conduct and SANDF military code.
 3. The ‘standard of force agreement’ (SOFA) between South Africa and
    the DRC should be reviewed and mechanism put in place to deal with
    technical and administrative problems.
 4. The procurement process of the Department of Defence should be
    adapted, because the SANDF is not in a classical peace-time role in
    the DRC.
 5. The communication equipment and vehicles of the SANDF should be
    maintained at 100% serviceability, so that SANDF equipment and
    personnel can operate in the harsh environment.

J. ACKNOWLEDGEMENTS

  The delegation wishes to thank Mr Mujahid Alam, head of the MONUC
  office in South Africa and the Department of Defence for the briefings
  on the DRC peace mission, before the delegation left South Africa. It
  also wishes to thank the Department of Defence for the air transport
  and logistical arrangements in the DRC, furthermore, the Portfolio
  Committee on Defence expresses its gratitude to the respective members
  of the SANDF and RSA Embassy officials in the DRC who accompanied the
  delegation.

K. NOTES

  1.    MONUC suffered 62 deaths, as at 10 October 2005: 51 soldiers, 8
      military observers, 2 international civilians and 1 local
      civilian. In February 2005, MONUC lost nine Bangladeshi
      peacekeepers in a militia ambush. The SANDF lost 12 members –
      vehicle accident (1), illness (2), combat (3) and drowning (6).
  2.    Republic of the Congo- Brazzaville, Sudan, Tanzania, Angola,
      Central Africa Republic, Burundi, Rwanda, Tanzania and Zambia.

  3.    The DRC has 50 per cent of Africa’s forests and has an immense
      river system that can provide hydroelectricity to the entire
      continent. It contains one third of the world’s reserves of cobalt
      and one tenth of its copper reserves. It contains 80% of the
      world’s columbite-tantalite (coltan) and it has substantial gold
      and industrial diamonds deposits.

  4.    The Lusaka Agreement of July 1999 followed a civil war, which
      broke out in 1998 in the DRC, between the government, which was
      supported by Angola, Chad, Namibia and Zimbabwe on the one side
      and more than 20 armed groups including the Rwandan-sponsored RCD
      and Ugandan-sponsored MLC on the other. The agreement led to the
      establishment of MONUC in November 1999.

  5.    As at 30 September 2005, MONUC stands at 16 258 personnel, ie 15
      369 troops, 524 military observers, 365 police, 803 international
      civilian personnel, 1 359 local staff and 460 UN volunteers.

  6.    It is estimated that since 1998, 3,5 million people died and 3,4
      million people are internally displaced, of which 1 million is
      children. Half of the population (about 60 million) is under the
      age of 18. Children are particularly affected by the crisis:  One
      out of five does not reach the age of five years; 38% suffer from
      malnutrition; 50% between 6 and 11 years do not attend school,
      some 9,3% are believed to have lost one or both parents to the
      AIDS pandemic; and thousands of other children have been recruited
      in armed groups or have been victims of grievous human rights
      abuses including killing and rape.

  7.    The Elections calendar
      20 June 2005 -     start of the election registration in Kinshasa
      18 Dec 2005  -     referendum on the Constitution
      31 Dec 2005  -     end of the Prolongation of the Transition
      20 Mar 2006  -     combine polls (presidential & parliament)
      24 Apr 2006  -     2nd presidential & provincial
      10 May 2006  -     proclamation of results (presidential)
      25 May 2006  -     senate poll (indirect)
      30 June 2006 -     deadline of transition (end of the transitional
                         government)

  8.    SANDF contribution to MONUC since April 2003
        - Task Force Headquarters
        - Infantry Battalion Group
      -       Level 1 Medical Facility
      -        4 x Infantry Rifle Companies
      -       1 x Support Company
        - Engineer Squadron
      -       Level 1 Medical Facility
      -       Construction Capability
        - Ferry Unit (Engineers)
        - Well Drilling Capability (Engineers)
        - Military Police Unit
        - Headquarters Support Unit

  9.    The lake-ferry is used to transport people, equipment and goods
      across the Congo River.

  10.   Sexual exploitation and abuse
      According to the UN code of conduct: ‘Sexual exploitation is any
      actual or attempted abuse of position of vulnerability,
      differential power, or trust for sexual purposes, including
      profiting monetarily, socially or politically. Sexual abuse is the
      actual or threatened physical intrusion of a sexual nature,
      whether by force or under unequal or coercive conditions.’

  11.   These power relations are physical, psychological, financial and
      political.


                             APPENDIX A

ABBREVIATIONS

ANC : African National Congress Brig. Gen : Brigadier-General DA : Democratic Alliance DDR : Disarmament, Demobilisation and Reintegration DDRRR : Disarmament, Demobilisation, Rehabilitation, Repatriation and Reintegration DPW : Department of Public Works DoD : Department of Defence FDLR : Force Democratique pour le Liberation du Rwanda (ex-Interahamwe) FARDC : Forces Armees de la Republique Democratique du Congo (Congolese Army) ICTR : International Criminal Tribunal for Rwanda IFP : Inkatha Freedom Party Lt. Gen : Lieutenant-General MONUC : United Nations Mission in the Democratic Republic of the Congo NCO : non-commissioned officer NCOP : National Council Of Provinces R.Adm : Rear-Admiral SADAIT : South African Detachment Assisting with Integration & Training SANDF : South African National Defence Force

                             APPENDIX B

Delegation of Committee:

1. Mr MS Booi - ANC (delegation leader)
2. Mr SB Ntuli - ANC
3. Dr GW Koornhof - ANC
4. Mr GP Mngomezulu - ANC
5. Mr OE Monareng - ANC
6. Ms XC Makasi - ANC
7. Mr L Moseki - ANC (NCOP)
8. Mr MR Shah - DA
9. Mr VB Ndlovu - IFP
10. Mr G Campher - Committee Secretary

Accompanying Officials:

1. Lt.Gen Z Binda - Chief of Joint Operations (SANDF)
2. Maj.Gen Hlatwayo - Group Officer Commanding : Operations (SANDF)
3. Brig.Gen Ledwaba - Chief : Military Police Agency (SANDF)
4. R.Adm Schoultz - Director : Operations (SANDF)
5. Col D Boshoff - Senior Staff Officer : Communications
6. Col C Geldenhuys - Personal Staff Officer : Chief – Joint Operations
7. Adv L Mtshali - Acting Director : Operations Policy
8. Mr M Zamisa - Parliamentary Officer : Ministry of Defence

9. Mr S Ngcobo - Assistant Director : National Office for Co- ordination of Peacekeeping Missions (Department of Foreign Affairs)

                          APPENDIX C
   

The Committee met with:

1. Mr William Lacy Swing -Special Representative of the United Nations Secretary General in the DRC
2. Mr K Pedro -Charge de Affaire (South African Embassy – DRC)
3. Lieutenant-General S Kisempa -Chief of General Staff – DRC Armed Forces
4. Lieutenant-General Babacar Gaye Force Commander (MONUC)
5. Brigadier-General VA Nelwamondo (SANDF) -Commander : South African Detachment Assisting with Integration & Training

6. Colonel ZA Mpapela (SANDF) -Commander : SANDF Contingent in UN Mission in DRC (MONUC)

                          APPENDIX D
   

MONUC ( United Nations Peace Mission in the Democratic Republic of the Congo)

List of troop contributing countries, as at 24/08/2005

                             APPENDIX E

BRIEF CHRONOLOGY OF THE PEACE PROCESS

17 May 1997:

Rebels belonging to the Alliance of Democratic Forces for the Liberation of the Congo (AFDL), led by Laurent-Désiré Kabila and backed by Rwanda and Uganda, forced President Mobutu Sese Seko into exile.

28 May 1997:

LD Kabila proclaims himself President of Zaire and renames the country the DRC

03 August 1998:

Congolese Tutsi officers and Rwandan soldiers, backed by Rwanda, take up arms against President Kabila.

10 July 1999:

A ceasefire is signed in Lusaka, Zambia. (The Lusaka Ceasefire Agreement).

30 September 1999: Resolution 1279 of the UN Security Council establishes MONUC.

24 February 2000: Resolution 1291 of the UN Security Council approves the deployment of 5 537 peacekeepers to monitor the implementation of the ceasefire.

16 June 2000: UN Resolution 1304 calls for the withdrawal of all foreign forces from the DRC, without specifying any deadline.

16 January 2001: President LD Kabila is killed in Kinshasa by one of his officers.

07 January 2001: Joseph Kabila, son of LD Kabila, takes over as Head of State.

29 March 2001: MONUC deploys its first contingent to the east, first in rebel-held areas, and then, on 4 April, in government-controlled zones.

15 October 2001: The Inter Congolese Dialogue officially opens in Addis Ababa, Ethiopia. Its aim is to address the political aspects of the Lusaka Ceasefire Agreement.

25 February 2002: The Inter Congolese Dialogue opens in Sun City, SA, with Sir Masire, former President of Botswana, as mediator. A partial power-sharing accord is reached, but several opposition groups refuse to sign.

30 July 2002:

The DRC signs an agreement with Rwanda in Pretoria, South Africa. Rwanda agrees to withdraw its 30 000 troops from the DRC in exchange for the repatriation of Rwandan Hutu extremists (ex-FAR/Interahamwe) responsible for the 1994 genocide in Rwanda.

06 September 2002: The DRC signs an agreement with Uganda in Angola, for the total withdrawal of Ugandan forces from the DRC.

05 October 2002: Marks the end of the withdrawal of troops of the Rwanda Patriotic Army.

30 October 2002: Marks the end of the withdrawal of Angolan, Namibian and Zimbabwean troops, allied to the DRC government.

17 April 2002: The Inter Congolese Dialogue resumes in Pretoria, under the mediation of the UN and South Africa. Under this agreement, Joseph Kabila remains President with four Vice-Presidents of the other groupings.

02 April 2003: Marks the closure of the Inter Congolese Dialogue in Sun City, South Africa, with the signing of the Global and All Inclusive Agreement.

04 April 2003: Marks the promulgation of the Transitional Constitution.

07 April 2003: President Joseph Kabila is sworn in under the new Constitution.

30 June 2003: The installation of the Transitional Government by President Joseph Kabila assisted by four Vice-Presidents, to prepare for free elections in two years’ time.

01 January 2004: Resolution 1565 (2004), increases MONUC’s troop strength and reinforces its mandate to Chapter VII. (See Appendix E)

29 March 2005: Resolution 1592 extends MONUC’s mandate until 1 October 2005.

16 May 2005: The official adoption by the Transitional Parliament of the draft Constitution to be approved by the people in a national referendum.

                             APPENDIX F

United Nations Security Council

Resolution 1592 (2005) Adopted by the Security Council at its 5155th meeting, on 30 March 2005

“The Security Council, “Recalling its previous resolutions and the statements by its President concerning the Democratic Republic of the Congo, in particular resolution 1565 of 1 October 2004, and the statement of 2 March 2005 (S/PRST/2005/10),

“Reaffirming its commitment to respect the sovereignty, territorial integrity and political independence of the Democratic Republic of the Congo as well as of all States in the region, and its support for the process of the Global and All-Inclusive Agreement on the Transition in the Democratic Republic of the Congo, signed in Pretoria on 17 December 2002, and calling on all the Congolese parties to honour their commitments in this regard, in particular so that free, fair and peaceful elections can take place, “Reiterating its serious concern regarding the continuation of hostilities by armed groups and militias in the eastern part of the Democratic Republic of the Congo, particularly in the provinces of North and South Kivu and in the Ituri district, and by the grave violations of human rights and of international humanitarian law that accompany them, calling on the Government of National Unity and Transition to bring the perpetrators to justice without delay, and recognising that the continuing presence of ex- Forces armées rwandaises and Interahamwé elements remains a threat for the local civilian population and an impediment to good-neighbourly relations between the Democratic Republic of the Congo and Rwanda, “Welcoming in this regard the African Union’s support for efforts to further peace in the eastern part of the Democratic Republic of the Congo, and calling on the African Union to work closely with MONUC in defining its role in the region, “Recalling its condemnation of the attack by one of these militias against members of the United Nations Organization Mission in the Democratic Republic of the Congo (MONUC), on 25 February 2005, and welcoming the first steps taken to date to bring them to justice, in particular the arrests of militia leaders suspected of bearing responsibility for human rights abuses, “Reiterating its call on the Congolese parties, when selecting individuals for key posts in the Government of National Unity and Transition, including the Armed Forces and National Police, to take into account the record and commitment of those individuals with regard to respect for international humanitarian law and human rights, “Recalling that all the parties bear responsibility for ensuring security with respect to civilian populations, in particular women, children and other vulnerable persons, and expressing concern at the continuing levels of sexual violence, “Reaffirming its full support for MONUC and for its personnel, who operate in particularly hazardous conditions, and welcoming the robust action it is undertaking in pursuit of its mandate, “Recalling the link between the illicit exploitation and trade of natural resources in certain regions and the fuelling of armed conflicts, condemning categorically the illegal exploitation of natural resources and other sources of wealth of the Democratic Republic of the Congo, and urging all States, especially those in the region including the Democratic Republic of the Congo itself, to take appropriate steps in order to end these illegal activities, “Bearing in mind the third special report of the Secretary-General on MONUC, dated 16 August 2004 (S/2004/650), and its recommendations, and aware of the importance of keeping under review the situation in the Katanga and Kasaï provinces, “Taking note of the seventeenth report of the Secretary-General on MONUC, dated 21 March 2005 (S/2005/167), and looking forward to the special report on the electoral process announced by the Secretary-General in paragraph 34 of his seventeenth report, “Noting that the situation in the Democratic Republic of the Congo continues to constitute a threat to international peace and security in the region, “Acting under Chapter VII of the Charter of the United Nations, “1.   Decides to extend the mandate of MONUC, as contained in resolution 1565, until 1 October 2005, with the intention to renew it for further periods; “2.   Reaffirms its demand that all parties co-operate fully with the operations of MONUC and that they ensure the safety of, as well as unhindered and immediate access for, United Nations and associated personnel in carrying out their mandate, throughout the territory of the Democratic Republic of the Congo, and in particular that all parties provide full access to MONUC military observers, including to all ports, airports, airfields, military bases and border crossings, and requests the Secretary-General to report without delay any failure to comply with these demands; “3.   Urges the Government of National Unity and Transition to do its utmost to ensure the security of civilians, including humanitarian personnel, by effectively extending State authority, throughout the territory of the Democratic Republic of the Congo and in particular in North and South Kivu and in Ituri; “4.   Calls on the Government of National Unity and Transition to carry out reform of the security sector, through the expeditious integration of the Armed Forces and of the National Police of the Democratic Republic of the Congo and in particular by ensuring adequate payment and logistical support for their personnel, and stresses the need in this regard to implement without delay the national disarmament, demobilisation and reinsertion programme for Congolese combatants; “5.   Further calls on the Government of National Unity and Transition to develop with MONUC a joint concept of operations for the disarmament of foreign combatants by the Armed Forces of the Democratic Republic of the Congo, with the assistance of MONUC, within its mandate and capabilities; “6.   Calls on the donor community, as a matter of urgency, to continue to engage firmly in the provision of assistance needed for the integration, training and equipping of the Armed Forces and of the National Police of the Democratic Republic of the Congo, and urges the Government of National Unity and Transition to promote all possible means to facilitate and expedite co-operation to this end; “7.   Emphasizing that MONUC is authorised to use all necessary means, within its capabilities and in the areas where its armed units are deployed, to deter any attempt at the use of force to threaten the political process and to ensure the protection of civilians under imminent threat of physical violence, from any armed group, foreign or Congolese, in particular the ex-FAR and Interahamwé, encourages MONUC in this regard to continue to make full use of its mandate under resolution 1565 in the eastern part of the Democratic Republic of the Congo, and stresses that, in accordance with its mandate, MONUC may use cordon and search tactics to prevent attacks on civilians and disrupt the military capability of illegal armed groups who continue to use violence in those areas; “8.   Calls on all the parties to the Transition in the Democratic Republic of the Congo to make concrete progress towards the holding of elections, as provided for by the Global and All-Inclusive Agreement, in particular in furthering the early adoption of the constitution and of the electoral law, as well as the registration of voters; “9.   Demands that the Governments of Uganda, Rwanda, as well as the Democratic Republic of the Congo, put a stop to the use of their respective territories in support of violations of the arms embargo imposed by resolution 1493 of 28 July 2003, or of activities of armed groups operating in the region; “10.  Further urges all States neighbouring the Democratic Republic of the Congo to impede any kind of support to the illegal exploitation of Congolese natural resources, particularly by preventing the flow of such resources through their respective territories; “11.  Reaffirms its concern regarding acts of sexual exploitation and abuse committed by United Nations personnel against the local population, and requests the Secretary-General to ensure compliance with the zero tolerance policy he has defined and with the measures put in place to prevent and investigate all forms of misconduct, discipline those found responsible and provide support to the victims, and to pursue active training and awareness- raising of all MONUC personnel, and further requests the Secretary-General to keep the Council regularly informed of the measures implemented and their effectiveness; “12.  Urges troop-contributing countries carefully to review the Secretary- General’s letter of 24 March 2005 (A/59/710) and to take appropriate action to prevent sexual exploitation and abuse by their personnel in MONUC, including the conduct of pre-deployment awareness-training, and to take disciplinary action and other action to ensure full accountability in cases of such misconduct involving their personnel;

“13.  Decides to remain actively seized of the matter.”

                             APPENDIX G

                             CHAPTER VII    ACTION WITH RESPECT TO THREATS TO THE PEACE, BREACHES OF THE PEACE, AND
                         ACTS OF AGGRESSION [pic]
                             Article 39

The Security Council shall determine the existence of any threat to the peace, breach of the peace, or act of aggression and shall make recommendations, or decide what measures shall be taken in accordance with Articles 41 and 42, to maintain or restore international peace and security.

                             Article 40

In order to prevent an aggravation of the situation, the Security Council may, before making the recommendations or deciding upon the measures provided for in Article 39, call upon the parties concerned to comply with such provisional measures as it deems necessary or desirable. Such provisional measures shall be without prejudice to the rights, claims, or position of the parties concerned. The Security Council shall duly take account of failure to comply with such provisional measures.

                             Article 41

The Security Council may decide what measures not involving the use of armed force are to be employed to give effect to its decisions, and it may call upon the Members of the United Nations to apply such measures. These may include complete or partial interruption of economic relations and of rail, sea, air, postal, telegraphic, radio, and other means of communication, and the severance of diplomatic relations.

                             Article 42

Should the Security Council consider that measures provided for in Article 41 would be inadequate or have proved to be inadequate, it may take such action by air, sea, or land forces as may be necessary to maintain or restore international peace and security. Such action may include demonstrations, blockade, and other operations by air, sea, or land forces of Members of the United Nations.

                             Article 43

1. All Members of the United Nations, in order to contribute to the maintenance of international peace and security, undertake to make available to the Security Council, on its call and in accordance with a special agreement or agreements, armed forces, assistance, and facilities, including rights of passage, necessary for the purpose of maintaining international peace and security.
2. Such agreement or agreements shall govern the numbers and types of forces, their degree of readiness and general location, and the nature of the facilities and assistance to be provided.

3. The agreement or agreements shall be negotiated as soon as possible on the initiative of the Security Council. They shall be concluded between the Security Council and Members or between the Security Council and groups of Members and shall be subject to ratification by the signatory states in accordance with their respective constitutional processes.

                             Article 44
   

When the Security Council has decided to use force it shall, before calling upon a Member not represented on it to provide armed forces in fulfilment of the obligations assumed under Article 43, invite that Member, if the Member so desires, to participate in the decisions of the Security Council concerning the employment of contingents of that Member’s armed forces.

                             Article 45

In order to enable the United Nations to take urgent military measures, Members shall hold immediately available national air-force contingents for combined international enforcement action. The strength and degree of readiness of these contingents and plans for their combined action shall be determined within the limits laid down in the special agreement or agreements referred to in Article 43, by the Security Council with the assistance of the Military Staff Committee.

                             Article 46

Plans for the application of armed force shall be made by the Security Council with the assistance of the Military Staff Committee.

                             Article 47

1. There shall be established a Military Staff Committee to advise and assist the Security Council on all questions relating to the Security Council’s military requirements for the maintenance of international peace and security, the employment and command of forces placed at its disposal, the regulation of armaments, and possible disarmament.
2. The Military Staff Committee shall consist of the Chiefs of Staff of the permanent members of the Security Council or their representatives. Any Member of the United Nations not permanently represented on the Committee shall be invited by the Committee to be associated with it when the efficient discharge of the Committee’s responsibilities requires the participation of that Member in its work.
3. The Military Staff Committee shall be responsible under the Security Council for the strategic direction of any armed forces placed at the disposal of the Security Council. Questions relating to the command of such forces shall be worked out subsequently.

4. The Military Staff Committee, with the authorisation of the Security Council and after consultation with appropriate regional agencies, may establish regional sub-committees.

                             Article 48
   

5. The action required to carry out the decisions of the Security Council for the maintenance of international peace and security shall be taken by all the Members of the United Nations or by some of them, as the Security Council may determine.

6. Such decisions shall be carried out by the Members of the United Nations directly and through their action in the appropriate international agencies of which they are members.

                             Article 49
   

The Members of the United Nations shall join in affording mutual assistance in carrying out the measures decided upon by the Security Council.

                             Article 50

If preventive or enforcement measures against any state are taken by the Security Council, any other state, whether a Member of the United Nations or not, which finds itself confronted with special economic problems arising from the carrying out of those measures shall have the right to consult the Security Council with regard to a solution of those problems.

                             Article 51

Nothing in the present Charter shall impair the inherent right of individual or collective self-defence if an armed attack occurs against a Member of the United Nations, until the Security Council has taken measures necessary to maintain international peace and security. Measures taken by Members in the exercise of this right of self-defence shall be immediately reported to the Security Council and shall not in any way affect the authority and responsibility of the Security Council under the present Charter to take at any time such action as it deems necessary in order to maintain or restore international peace and security.

Sources: United Nations website, MONUC documents, SANDF documents.

1. Annual Report of the Portfolio Committee on Science and Technology [Reprint]

                    JANUARY – DECEMBER 2005
   

2. Name of the Committee: Science and Technology

   Chairperson: Mr E N N Ngcobo

   Committee Secretary: Zelna Jansen

3. Chairperson’s overview

   The Committee was able to work well together as a team. There was a great deal of transparency, efficiency and co-operation throughout. Discussions in the Committee were often robust, but frank and fair.

4. Vision and mission of the committee The Mission of the Committee is to constantly perform a monitoring and oversight role by engaging the Department of Science and Technology and various stakeholders in their progress and development.

   The Vision of the Committee is to ensure real and sustainable improvement in the quality of lives of all South Africans by making science and technology the engine of socioeconomic growth in our society.

5. List of public entities over which the committee exercise oversight

         • Department of Science and Technology (DST)
         • Council for Scientific and Industrial Research (CSIR)
         • Human Science Research Council  (HSRC)
         • National Research Foundation (NRF)
         • Africa Institute of South Africa (AISA)
         • Godisa Trust
         • Tshumisano Trust
         • Academy of Science of South Africa (ASSAf)
         • National Advisory Council on Innovation (NACI)
   

6. Number of meetings held and those cancelled

         • 20, None cancelled
   

7. Legislation referred to the committee (Finalised and not finalised)

         • No legislation was referred to the Committee
   

8. Papers (International Agreements, Protocols, Reports etc) referred to the Committee

   (i) Statute of the Centre for Science and Technology of the Non- Aligned Movement and Other Developing Countries • Referral date -: 10 June 2005

         • Consideration date by the committee
           -:   21 June 2005
   
   
         • Report publication (ATC date)
           -:   23 June 2005
   

   (ii) Accession of South Africa’s Membership of the International Centre for Scientific and Technical Information (ICSTI)

         • Date Committee was briefed
           -:   11 October 2005
   
   
         • Referral date
           -:   19 October 2005
   
   
         • Consideration date by the committee
           -:   19 October 2005
         • Report publication (ATC date)
           -:   8 November 2005
   
   
         • Debate in the House / Consideration of Request for
           Approval by Parliament
           -:   15 November 2005
   

9. Oversight (Local) visits

   (i) Study Tour Visits to the Northern Cape Province, Eastern Cape Province

         • Objectives of the trip
   
   
           -:   To visit and monitor the Department of Science and
                Technology (DST) and Entities funded by the
                Department, including poverty alleviation projects.
   
   
         • Dates
           -:   1 – 5 August 2005
   
         • Delegation
           -:   Mr E N N Ngcobo  (Chairperson) (ANC)
                Mr A R Ainslie (ANC)
                Prof I J Mohamed (ANC)
                Ms F Mahomed (ANC)
                Mr S N Nxumalo (ANC)
                Mr J Ramrock (Committee Secretary)
   
   
         • Province, places visited
            -:  Northern Cape Province and Eastern Cape Province
   
   
         • Report (when was it adopted by the committee)
            -:  15 November 2005
   

   (ii) Study Tour Visits to the Gauteng Provinces

         • Objectives of the trip
   
   
           -:   To visit and monitor the Department of Science and
                Technology (DST) and Entities funded by the
                Department, including poverty alleviation projects.
   
   
         • Dates
           -:   15 – 19 August 2005
   
   
         • Delegation
           -:   Mr E N N Ngcobo  (Chairperson) (ANC)
                Mr A R Ainslie (ANC)
                Prof I J Mohamed (ANC)
                Ms F Mahomed (ANC)
                Mr S N Nxumalo (ANC)
                Mr A Mlangeni (ANC)
                Mr P Nefolovhodwe (AZAPO)
                Mr B Mnyandu (DA)
                Mr J Ramrock (Committee Secretary)
                Ms N Borotho  (Committee Assistant).
   
   
         • Province, places visited
            -:  Gauteng Provinces
   
   
         • Report (when was it adopted by the committee)
           -:   15 November 2005
   

10. International Visits

          • Objectives of each trip (not more than a paragraph)
            -:   Conference in Budapest on Science, Technology and
                 Innovation Policy. Purpose of conference was to
                 examine the role of Parliaments in Science,
                 Technology and Innovation process as well as
                 challenges and constraints faced in the context of
                 increasing complexities in decision making and
                 opportunities for science to contribute towards
                 sustainable development.
    
    
          • Dates
            -:   9, 10, 11 and 12 November 2005
    
    
          • Delegation
            -:   One Member, Mr J B Mnyandu (ANC)
    
    
          • Country, places visited
            -:   Budapest, Hungary
    
    
          • Report (when was it adopted)
             -:  Informal report in the form of Member briefing the
                 Committee, during the second term. Date to be
                 determined by the Committee.
    

11. Budget Vote

          • Referral date
            -:   27 January 2005
    
    
          • Briefing by department (date)
            -:   14 June 2005
    
          • Report publication (ATC date)
            -:   15 June 2005
    

12. Annual reports of the Executive (30 September)

         • Referral date
           -:   20 October 2005
         • Briefing by department (date)
           -:   11 October 2005
    
    
         • Report publication (ATC date)
           -:   8 November 2005
    

13. Other committee activities (briefings on other issues, workshops, conferences)

    (i) National Science Week / Launch of Centres of Excellence

          • Date
            -:   7 to 14 May 2005
    
    
          • Agenda
            -:   To create awareness of the important role that
                 science play in our daily lives.
            -:   To encourage our youth to consider studying and
                 improving their performance in mathematics and
                 science.
            -:   To attract more youth into science, engineering and
                 technology careers.
    
    
          • Hosted by
            -:   Department of Science and Technology
    
    
          • Resolutions
            -:   None
    

    (ii) Genetically Modified Organisms

          • Date
            -:   31 May 2005
    
    
          • Agenda
            -:   BioPAD Presentation on Implementation of the
                 National Biotechnology Strategy
    
    
          • Presenters:
            -:   Dr W Stanford of the Advanced Research Centre for
                 Applied Microbiology at UWC
            -:   Mr G Ashton of Safe Age
            -:   Bishop Geoff Davies of Ecumenical Environmental
                 Institute
    
    
          • Resolutions
         None
    

    (iii) Conference on “Human Resource for Knowledge Production in South Africa”

          • Date
            -:   23 to 24 June 2005
    
    
          • Agenda
            -:   The Conference was directed at finding practical
                 solutions to the problem of human resource
                 development and knowledge production.
    
    
          • Presenters:
            -:   Professor De Le Ray of UCT
            -:   Dr R Adam- Director General, Department of Science
                 and Technology
            -:   President of CSIR – India
            -:   Dr S Sibisi - President of CSIR – South Africa
            -:   Dr K Mokhele – CEO of NRF
            -:   Many other overseas experts
    
    
          • Hosted by
            -:   Ministry of Science and Technology and Ministry of
                 Education
    
          •      Recommendations
            -:   Focus should be on recruitment and retention of
                 masters, doctoral and post doctoral graduates to
                 create a more flexible and responsive workforce able
                 to achieve mastery of new domains of technology.
    
    
            -:   Promote collaboration and development of
                 partnerships between universities, science councils
                 and industry to maximise overall institutional
                 research development capabilities to achieve a
                 critical mass of researchers across institutions and
                 to support the national Research and Development
                 agenda.
    
    
            -:   Ensure that knowledge is optimised by focused
                 attention to more strategic development of PhD
                 graduates including the optimising, funding and
                 managing of the environment in which students operate
                 such as explicit development of research skills,
                 development of better supervisor support and more
                 appropriate funding for full time students.
    
    
            -:   Ensure the prioritisation of Research and
                 Development is informed by national goals and
                 imperatives.
    
    
            -:   Enhancing Research and Development funding.
    
    
            -:   Secure the most rapid and sustainable development of
                 the continent and improvement of the quality of life
                 of its people through political leadership at the
                 highest level in order to prioritise the
                 mainstreaming of science and technology through the
                 African Union, NEPAD and multilateral programmes.
    
    
            -:   Globalisation of research.
    

(iv) Youth into Science Strategy

            • Date
              -:   25 to 26 October 2005


            • Agenda
             -:    To address some of the challenges identified by the
                   Status of Youth Report 2005.


            • Hosted by
              -:   Youth Division of Department of Science and
                   Technology


            • Keynote Speakers
              -:   Deputy Minister of the Ministry for Science and
                   Technology
              -:   Chairperson: PC Science and Technology


            • Recommendations


              -:   Provide an environment that is conducive to
                   attracting majority of, especially previously
                   disadvantaged youth, to enter science, technology,
                   engineering and mathematics careers with ongoing
                   support to establish themselves in the National
                   System of Innovation.


              -:   Improve the identified shortcomings with a view to
                   equipping youth with knowledge, skills, values and
                   attitudes that will enable them to adapt, participate
                   and succeed in an economically complex society.


              -:   To enhance science and technology literacy among the
                   public in general and the youth in particular.


              -:   Nurturing youth talent and potential for science and
                   technology based careers: To enrol a more
                   representative youth with talent and potential into
                   science and technology based careers.

(v) Awards Ceremony held by Academy of Science of South Africa (ASSAf)

            • Date
              -:   28 October 2005


            • Agenda
              -:   Awards Ceremony of ASSAf

            • Hosted by
              -:   ASSAf


            • Keynote Speaker
              -:   Minister of Science and Technology
              -:   Chairperson: P C for Science and Technology


            • Recommendations
              -:   Stronger support of ASSAf activities by DST and
                   provinces.

(vi) Computer Science Model

            • Date
              -:   8 November 2005


            • Agenda
              -:   Briefing on Computer Model on Easy Science


            • Presenters if any
              -:   Professor Van Wyk of University of Pretoria
              -:   Ms P Moodley – Chairperson, Eskom Expo
              -:   Mr L Mphahlele – Manager: Science and Youth,
                   Department of Science and Technology


            • Recommendations
              -:   Stakeholders must work together to achieve common
                   goal of making science attractive to students and the
                   community.

(vii) Southern African Large Telescope (SALT)

            • Date
              -:   10 November 2005


            • Agenda
              -:   Launch of SALT


            • Hosted by
              -:   Department of Science and Technology
              -:   National Research Foundation


            • Keynote Speakers
              -:   President Thabo Mbeki
              -:   Minister for Science and Technology, Mr Mangena
              -:   Portfolio Committee was represented by Chairperson


            • Resolutions
              -:   None

  (viii)     Workshop on International Scientific and Technological Co-
             operation for Sustainable Development

            • Date
              -:   21 to 22 November 2005


            • Agenda
             -:    The workshop was a follow-up on a report given by
                   South Africa on the outcomes of the World Summit on
                   Sustainable Development (WSSD) held in 2002.
             -:    To identify good practices in  international  science
                   and technology co-operation, especially between  OECD
                   and  developing  countries,   aiming   at   fostering
                   capacity-building   in   science   and    technology;
                   facilitating  effective   diffusion   of   scientific
                   knowledge and technology  transfer;  and,  developing
                   knowledge infrastructure and networks,  in  order  to
                   meet sustainable development objectives  at  national
                   and  global  levels.  Such  good  practices   include
                   highlighting concrete and  efficient  solutions  that
                   have been implemented  in  the  areas  of  water  and
                   energy.


            • Hosted by
              -:   Department of Science and Technology and OECD


            • Resolutions
              -:   None

1. Budget of the committee

         • How much was allocated to the committee
           -:   R470 008,00
   
   
         •  Expenditure:
           Catering              R18 512,90
           Provincial Visits          R269 233,80
           Overseas Trips        R48 830,00
           Conferences                R0
           Seminars              R0
           Workshops             R0
   
   
         • Balance               R  79 701,20
   

2. Outstanding Matters

   -: Adoption of Annual Report of Committee -: Adoption of Minutes of 15 November 2005

3. Attach the following documents

      i. Master attendance list
     ii. Copies of minutes of all meetings
    iii. Copies of the reports of all oversight/international visits
     iv. Copy of Budget statement
   

4. SUPPORT STAFF

Committee Secretary: Ms Z Jansen

Control Committee Secretary: Mr T Madima

Committee Assistant: Ms N Borotho

Secretary to Chairperson: Mrs B Walters

Researcher (Research Unit): None

………………………………………… …………………………………… COMMITTEE SECRETARY DATE

……………………………………………… ……………………………………… CONTROL COMMITTEE SECRETARY DATE:

…………………………………… ……………………………………… COMMITTEE CHAIRPERSON DATE: DATE

                      WEDNESDAY, 12 APRIL 2006

COMMITTEE REPORTS

National Assembly

1. Report of the Ad Hoc Committee on the Auditor-General on the Budget and Strategic Plan of the Office of the Auditor-General 2006/07, dated 30 March 2006:

 1. Introduction


    The Ad Hoc Committee sat on the 29 November 2005  to  consider  the
    Budget and Strategic Plan for the year 2006/07. The Committee  does
    not have the constitutional or  legal  statutory  power  to  effect
    amendments via approval from the House; its powers in  this  regard
    are purely advisory. In this capacity it makes  recommendations  to
    the Office of the Auditor-General which is  then  approved  by  the
    House. The Office of the Auditor-General was represented  by  Mr  S
    Fakie (Auditor-General) and Mr T Nombembe (Deputy Auditor-General).

 2. Overview of the Budget and Strategic Plan


    In his introduction, The Auditor-General stated that the new Public
    Audit Act (PAA) has provided strategic direction to the  Office  of
    the Auditor-General (OAG) and that it will be  fully  implementable
    by the end of March 2006. The Budget  and  Strategic  Plan  of  the
    Office  reflects  these  developments  and  is   directed   towards
    improving the quality of service,  greater  cost-effectiveness  and
    expanding its focus on performance auditing. A  value-adding  audit
    methodology  had  been  developed   that   combined   elements   of
    performance auditing with regulatory auditing. 7% of  the  Office’s
    resources will be allocated to specific performance  audits,  which
    will be increased in the medium and long-term on a  structured  and
    incremental basis.


    Three  themes  have  been  identified  for  the  coming  year   viz
    allocation of low cost housing projects to contractors and controls
    over  these  projects,  infrastructure  investment   and   transfer
    payments. The regulatory  audit  process  will  continue  with  the
    previous year’s themes (investment  in  public  infrastructure  and
    human resource and supply  chain  management),  and  three  further
    themes will be added: Asset management, personnel  expenditure  and
    transfer payments.


    Additional focus  areas  will  be  HIV/Aids  in  provincial  health
    departments and government spending on subsistence  and  traveling.
    The Office  is  due  to  undergo  a  major  transformation  of  its
    corporate services structure, from  a  model  based  on  functional
    divisions to one  based  on  a  process-driven  corporate  services
    model, a process that will last 18 months.

    The budget represented a 23% increase in  income  over  last  year,
    totaling R875,5 million and  a  30%  increase  in  the  expenditure
    budget. A deficit of R63,9 million for the funding  of  the  office
    was sustainable as this amount was lower than net  working  capital
    total of R72,9 million.


    There are several assumptions underlying the budget. Firstly, there
    is a proposed tariff increase of 4% with the total estimated  audit
    costs amounting to 0,21 % of total state expenditure. Last year  it
    stood at 0,17%. Secondly, the inflationary increases  for  salaries
    are set at 5,5% and for overheads expenditure  it  is  set  at  5%.
    Furthermore, due to staff shortages, there will be an  increase  in
    work that is contracted  out  amounting  to  a  37%  increase  over
    forecasted figures for 2005/06[1] totaling R248 million in 2006/07,
    of which R58 million will be used to accommodate  the  10%  vacancy
    assumption.  This  amount  is  fully   recoverable.   Irrecoverable
    contract work amounts to R8,1 million.


    There are certain key ratios that ensure  that  expenditure  should
    not exceed certain norms: Each unit has a 30% margin on all of  its
    activities, contracted work stands at 20% of the total  audit  work
    of the Office,  overhead  costs  must  not  exceed  10%  and  staff
    vacancies should remain below 10%. The industry norm for  vacancies
    is presently 15 to  20%  because  of  the  insufficient  supply  of
    qualified candidates in a highly competitive market.


    Comment 1. The Committee endorses the annual tariff increase of  4%
    as it falls within  the  governments’  recommended  guidelines  for
    inflation, and it falls within the  three  year  period  of  raised
    spending that was  endorsed  in  last  years’  budget.  The  actual
    percentage also remains constant from the previous year.
    Comment 2. The Committee endorses salary increases of  5,5%  as  it
    lies within the acceptable inflation range.
    Comment 3. The Committee notes however that  the  above  percentage
    increase excludes the discretionary personnel allowance  of  4%  of
    normal staffing costs that would be activated in the event  of  the
    market repositioning of salaries. The Committee recommends that the
    future Oversight Mechanism address the  merits  of  retaining  this
    item in the budget.


 3. Corporate Services Restructuring
    This years’ budget  was  mainly  driven  by  the  major  shifts  in
    corporate restructuring. The new Corporate Services will consist of
    five business units viz Strategy, Governance, Special and Strategic
    Projects, Operational and Transactional  Management,  and  finally,
    the Reputation  and  Stakeholder  Management  Unit.  The  key  cost
    drivers will be a large  increase of appropriately qualified  staff
    at senior levels, and a significant reduction of staff at a general
    administrative  level.  The  budget  for  corporate  services  will
    increase from R57,8 million that was budgeted for the previous year
    to R88,6 million for the present year. Contract work will  only  be
    done under special circumstances in this  unit.  The  restructuring
    will only be completed by November 2007.


    Comment 4. The Committee congratulates the OAG on this  timely  and
    much-needed initiative,  which  if  successful,  will  considerably
    improve the quality of service delivery from the OAG  by  relieving
    senior executives of non-core responsibilities, enhancing corporate
    governance,  and  fine-tuning  strategic   planning   and   project
    management. The committee looks forward to regular progress reports
    and the completion of the process by November 2007.

 4. Professional Assistance


    4,7% of the total expenditure budget, translating to an  amount  of
    R40,1 million, is spent on professional assistance for  staff.  The
    OAG has a total of 668 trainee accountants out of a total projected
    audit personnel complement of 1 500. This ratio reveals the  extent
    to which the OAG is  affected  by  the  industry-wide  shortage  of
    skilled personnel in these fields and  also  the  commendable  role
    that the OAG is playing in nurturing the profession.


    Comment 5. The Committee notes the remedial steps taken to  improve
    pass rates and looks forward to improved examination performance of
    candidates. The Committee also wishes to congratulate the  OAG  for
    its focus on training staff, thereby helping to alleviate  critical
    skill shortages in South Africa. As noted in its  comments  on  the
    Annual Report, the Committee anticipates improved  recruitment  and
    retention practices.

 5. Reputation and Stakeholder Management


    Given the  escalation  in  auditee  dissatisfaction,  the  OAG  will
    develop a Reputation Index  with baselines for the  measurement  for
    all key stakeholders; this will be in place by end of March 2006.  A
    special Committee will be set up to manage stakeholder  satisfaction
    requirements and projects. An amount of R11,2 million  is  allocated
    to these activities. An international benchmark is  yet  to  be  set
    with regard to this kind of expenditure against total expenditure.

 6. Performance Bonuses


    In 2005/06 no performance bonuses were paid out due to the change in
    the performance review cycle from 1 April 2005 to 31 March 2006 to 1
    January 2006 to 31 December 2006. Traditionally performance  reviews
    happened at the peak of the audit period, making  heavy  demands  on
    management. Staff were content to forego bonuses in 2005/06 in order
    to effect the permanent change in the performance cycle  review,  in
    the interests of relieving workloads at  pressured  moments  in  the
    auditing cycle. With the change in the performance  year,  a  review
    and audit of the OAG’s performance for 2005/06 will not be  possible
    and this will result in  a  technical  qualification  of  the  audit
    report. In the meantime, the R11 million  budgeted  for  performance
    bonuses will be rolled over into the following year,  for  which  an
    amount of R15,8 million has already  been  budgeted.  A  performance
    review will cover the two years.


    Comment 6. The Committee condones  the  change  to  the  Performance
    Review Cycle given that the Public Audit Act is just one  year  into
    implementation, and that an unintended consequence of that Act was a
    coincidence of a peak of the audit period with  the  period  of  the
    performance  review;  and  recommends  that  the  future   Oversight
    Mechanism  urgently  advise  on  an  option  for  regularising  this
    arrangement for the future and to report by mid- May at the latest.

 7. Final comments


    The Committee is satisfied that it has enquired  into  the  relevant
    aspects of the budget and strategic plan for the year 2006/07. It is
    mindful of the considerable achievements, as well  as  the  enormous
    challenges facing the OAG, and of the  critical  importance  of  its
    work for sustaining accountability in a democratic South Africa.  In
    this regard it has noted the considerable work-load of the Office in
    terms  of  regulatory  audits  alone  and  is  encouraged   by   the
    incremental increases in performance auditing. Major challenges will
    lie in the achievement of sustained improvements in the  quality  of
    audits   performed,   attaining   acceptable   levels   of   auditee
    satisfaction, the  training  and  retention  of  suitably  qualified
    staff, progressive increases in performance audits and the  roll-out
    of the ambitious reforms of the  corporate  services  division.  The
    Committee wishes the Auditor-General  and  its  staff  well  in  its
    endeavours.

Report to be considered.

1. Report of the Ad Hoc Committee on the Annual Report of the Auditor- General 2004 – 2005, dated 30 March 2006:

Introduction


The Ad Hoc Committee on the Auditor-General met on 28 November 2005 to
consider the Annual Report of the Auditor-General 2004/05. In its
preparation for the hearings, the Committee had submitted 39 questions
to the Auditor-General for reply which was effected by a detailed
response to each question at the hearing.

 1. Schedule of Compliance with the Public Audit Act


    The AG identified 32 projects to align policies, guidelines and
    procedures to the PAA, of which 31 have been completed and reviewed
    by Exco, with one outstanding viz the establishment of a stakeholder
    relationship with the parliamentary oversight mechanism. By the end
    of March 2006, after the strategy meeting in February, the Auditor-
    General will have approved the 21 projects which he is required to
    do by law. The Office undertook to forward to the Committee a
    document outlining the four or five policies that related to the
    oversight Mechanism of which the standards of auditing were a
    critical part.[2]


    Recommendation 1: The Ad Hoc Committee notes with appreciation the
    ATC, dated 27 March 2006, announcing the establishment of the
    Standing Committee on Auditor-General .


    Recommendation 2: The Auditor-General must submit a written report
    to Parliament detailing the implementation plans of all the 32
    projects that were identified for the alignment of the Office with
    the PAA.

 2. 2003/04 Audit Reports Not Considered By Legislatures


    The Mpumalanga Legislature has not considered 83,3% of the Audited
    Reports of the Provincial Government. SCOPA has not considered 13
    of the 34 annual departmental reports that it had received in 2004.
    The national elections and the heavy workload of SCOPA had
    contributed to the problem. It appears that these reports will be
    reviewed together with next year’s annual reports.

    Recommendation 3: Once the Oversight Mechanism is set up, it should
    take procedural and legal advice on what (if any) mechanisms are
    available to any legislature for dealing with the non-consideration
    of audited reports and whether the Mechanism has any role in this
    regard, given its interest in ensuring that the reports of the
    Auditor-General are reviewed by appropriate legislature.


 3. Code of Ethics


    The Auditor-General confirmed that the Office did have an approved
    Code of Ethics which also addressed the expectations contained in
    the PAA. The Advisory Board had not yet had sight of the Code as it
    had met only once.

 4. Statistics of Contracts Awarded to BEE Firms


    45% of the total contract value[3], equalling R75 million, was
    awarded to the Big Four; 35% went to the medium firms, equalling R59
    million and 20% equalling R34 million went to small firms. The size
    of the firm is based on the number of partners and trainee
    accountants that were employed at the enterprises.


 5. Criteria for Awarding Contracts to Firms


    Guidelines for contract work were set in consultation with the audit
    firms, SAICA and the BEE Commission in 2001. Black Economic
    Empowerment has a 70% rating and Quality Control has a 30% rating.
    In Gauteng and KwaZulu-Natal, 50 points have to be scored in order
    to be considered, whereas in North West and Limpopo 33 points must
    be scored and in the rest of the country 40 points are required. The
    differences are due to the scarcity of auditing firms in certain
    provinces. Work is not contracted out if there are conflicts of
    interest and for certain key audits such as SARS and National
    Treasury. The awarding of contracts was done in an open and
    transparent manner.


    Audit Controllers form the AG’s Office monitored the work of each
    contracted firm and did quality control reviews. The Office did
    assist contracted audit firms to improve the quality of their work
    but they were not re-appointed in instances of continuous poor
    performance. The PAA was amended to enable the AG to audit public
    entities if it elected to do so; external auditors were appointed in
    other instances. In the latter case, they were audited to the
    Office’s standards. In Provinces where there were small pools of
    accounting firms, no firm would be allowed to audit a department if
    they had done accounting work for that department.


 6. Levels of Municipal Compliance with Submission Timelines


    Whereas in 2003/04, when only 17 (6%) of municipalities had
    submitted their financial statements timeously, the situation has
    improved with 148 (52%) of municipalities having submitted on time.
    The AG’s Office is obliged to report to Parliament those
    municipalities that have failed to submit their financial reports on
    time. The quality of reporting will also be checked.
    Recommendation 4: as per Recommendation 3.


 7. Reasons for Late Submission of Municipal Financial Statements


    Lack of financial management capacity, especially with regard to
    systems of internal control and staff competencies, attitudes
    (perception that it is a low priority), the burden of outstanding
    financial statements, the migration to new accounting standards and
    weak oversight were the main reasons underlying late submission.
    Project Consolidate was aimed at improving financial management at
    municipal level.

 8. Levels of Provincial and National Compliance with Submission
    Timelines


    All National Departments submitted their financial statements on
    time and 97% of Provincial Departments. Eastern Cape (Health) and
    KZN (Finance Consolidated) did not submit on time.





    Recommendation 5: as per recommendation 3.


 9. Reasons for Non-Tabling of Special Investigation Reports


    Special Audits / Reports are very often requested by the auditee.
    Only those reports that are requested by Legislature or by the
    public, or that have high public interest, or that reveal
    significant findings, are tabled.


    Recommendation 6: A detailed list should be provided in future
    annual reports of all Special Investigations that were tabled.

10.      Reasons for Low Pass Rates of Candidates in the Auditor-
    General’s Office


    Poor selection criteria were mainly responsible for the poor results
    of this pilot project in 2004. More stringent criteria and the
    limitation of service providers to only one provider should improve
    results. The AG’s Office is progressively shifting its bursary focus
    towards more stringently selected full-time students.

11. The Minimum Qualifications Framework


    The MQF was introduced in 2000 and included the recognition of prior
    learning. The introduction had led to a higher labour turnover as
    permanent staff who had previously been classified as auditors were
    now reclassified as trainee accountants. Staff had also left to
    become internal auditors in government and better remuneration had
    led to a higher turnover of chartered accountants. This had a
    serious impact on the operations of the Office, and even affected
    financial performance as the high level of vacancies led to more
    work having to be contracted out on a short-term basis.


    Recommendation 7: The Ad Hoc Committee regards these as very serious
    problems as it notes that the Office even had to temporarily relax
    its MQF requirements, as well as reset its entry qualification
    requirements to graduate instead of post-graduate level because the
    market is experiencing an under-supply of appropriately qualified
    trainees. The Office of the AG should place an even greater emphasis
    on the training, retention and recruitment of appropriately
    qualified staff.

12.      Audited Satisfaction Levels


    An average of 42% overall satisfaction of auditees was recorded for
    the year in question; this was a decline from the previous year. The
    AG has initiated a process for understanding these results in
    response to feedback from auditees. The results of the survey apply
    equally to the work performed by the AG’s Office and to the work
    performed by private audit firms.


    Recommendation 8: The Ad Hoc Committee recommends that the AG
    urgently review its survey methodology and its implementation to
    establish whether accurate and reliable feedback is being obtained.
    Secondly, that the Office share with the committee its understanding
    as to why stakeholder satisfaction appears to be declining. Thirdly,
    the Committee would like to have benchmarks for auditee satisfaction
    set, based on international experience. These matters should be
    regarded as priority.


13.      Quality Assurances



    Quality control results show a decline from last year, with
    disturbing increase to 39% from 20% for poor performance from the
    last year and a decline in good results from 47% to 30%. This is
    very worrying.


    The AG has identified a number of root causes of the problem. Peak
    audit periods still had conflicting non-audit related
    responsibilities which diverted focus from the main task at hand.
    This was compounded by inadequate project management of the audit
    process throughout the year that caused bottlenecks during peak
    audit periods. There were inconsistent methods of work and
    insufficient levels of training for management with regard to audit
    review requirements.


   These matters are to be addressed in this current year and adequate
   budgetary allocations are to be made in this regard. The AG’s office
   is of the view that the implementation of the MQF would also assist
   in addressing this problem and that results should be seen by the end
   of 2006.


   Recommendation 9: This is a matter of great concern to the Ad Hoc
   Committee and should be one of the points of most intensive
   engagement by the Committee (or its successor) with the Office of the
   Auditor-General.


14.      Retention of Surplus


    Once the 2006/07 budget has been considered by Parliament, the
    application will be made for the retention of 2004 and 2005
    surpluses. This should be finalised by the end on March 2006.

Report to be considered.


                       TUESDAY, 18 APRIL 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Assent by President in respect of Bill

 1) Repeal of Black Administration Act and Amendment of Certain Laws
    Bill [B 25D – 2005] – Act No 28 of 2005 (assented to and signed by
    President on 7 April 2006).

National Assembly

1. DECISION BY THE SPEAKER OF THE NATIONAL ASSEMBLY TO ESTABLISH AN AD HOC COMMITTEE ON THE APPOINTMENT OF THE AUDITOR-GENERAL

   I have, after consultation with the Chief Whips and party representatives, decided, in terms of Rule 214, to establish an Ad Hoc Committee on the Appointment of the Auditor-General.

   The committee to:-

   a) nominate a person in terms of section 193 of the Constitution for appointment as Auditor-General; b) consists of 17 members of the Assembly as follows: African National Congress 10, Democratic Alliance 2, Inkatha Freedom Party 1, and other parties 4; c) exercise those powers in rule 138 that may assist it in carrying out its functions; and d) submit its report on the nomination of the Auditor-General by 21 June 2006.

   Baleka Mbete, MP Speaker of the National Assembly

2. Referral to Committees of papers tabled

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


       a) Report of the Public Service Commission on Assessing the Role
          of Labour Relation Officers in the Public Service, 2005 [RP
          71-2005].

(2)     The following paper is referred to the Portfolio Committee on
    Defence for consideration:

      a) Strategic Business Plan for the Department of Defence for 2006-
         2007 to 2008-2009 [RP 33-2006].

(3)     The following paper is referred to the Portfolio Committee on
    Communications for consideration:

      a) Strategic Plan for the Department of Communications for 2006-
         2009.

(4)     The following paper is referred to the Portfolio Committee on
    Defence and the Joint Standing Committee on Defence:


      a) The President of the Republic submitted a letter dated 17 March
         2006 to the Speaker of the National Assembly informing Members
         of the Assembly of the employment of the South African National
         Defence Force in the Union of Comores.

(5)     The following paper is referred to the Portfolio Committee on
    Safety and Security for consideration:

      a) Strategic Plan of the Independent Complaints Directorate (ICD)
         for 2006-2009 [RP 28-2006].

(6)     The following paper is referred to the Portfolio Committee on
    Safety and Security:

      a) Agreement between the Government of the Republic of South
         Africa and the Government of the Republic of Uganda on Police
         Co-operation, tabled in terms of section 231(3) of the
         Constitution, 1996 (Act No 108 of 1996).


(7)     The following paper is referred to the Portfolio Committee on
    Public Service and Administration and the Portfolio Committee on
    Justice and Constitutional Development:

      a) Report of the Public Service Commission on Citizen Satisfaction
         Survey: Overview Report of the Criminal Justice Sector for
         October 2005 [RP 70-2005].

(8)     The following papers are referred to the Portfolio Committee on
    Environmental Affairs and Tourism:

      a) General Notice No 381 published in Government Gazette No 28591
         dated 7 March 2006: Invitation to interested persons to submit
         names for vacancies on the Board of South African Tourism, in
         terms of the Tourism Act, 1993 (Act No 72 of 1993).

      b) Government Notice No 223 published in Government Gazette No
         28618 dated 10 March 2006: Amendment of fees payable for the
         use of fishing harbour facilities (fishing harbour fees), in
         terms of the Marine Living Resources Act, 1998 (Act No 18 of
         1998).


      c) Government Notice No 231 published in Government Gazette No
         28620 dated 14 March 2006: Invitation to interested persons to
         submit names to fill vacancies on the Board of South African
         Weather, in terms of the South African Weather Service Act,
         2001 (Act No 8 of 2001).


      d) Government Notice No 232 published in Government Gazette No
         28620 dated 14 March 2006: Invitation to interested persons to
         submit names to fill vacancies on the Board of South African
         National Biodiversity Institute (SANBI), in terms of the
         National Environmental Management: Biodiversity Act, 2001 (Act
         No 10 of 2004).


      e) General Notice No 425 published in Government Gazette No 28636
         dated 20 March 2006: Draft policy on the Allocation of White
         Shark Cage Diving Permits and the Management of White Shark
         Cage Diving Industry for Public Comment, in terms of the Marine
         Living Resources Act, 1998 (Act No 18 of 1998).

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


      a) Government Notice No 298 published in Government Gazette No
         28582 dated 3 March 2006: Karoo National Park: Exclusion of
         Land, in terms of the National Environmental Management:
         Protected Areas Act, 2003 (Act No 57 of 2003).

(10)    The following paper is referred to the Portfolio Committee on
    Water Affairs and Forestry for consideration and report. The Report
    of the Independent Auditors on the Financial Statements is referred
    to the Standing Committee on Public Accounts for consideration.

      a) Report and Financial Statements of Bloem Water for the year
         ended June 2005, including the Report of the Independent
         Auditors on the Financial Statements for the year ended June
         2005.

(11)    The following paper is referred to the Portfolio Committee on
    Justice and Constitutional Development for consideration and
    report:


      a) Report on withholding of remuneration of Magistrate M S Makamu,
         a magistrate at Benoni, in terms of section 13(4A)(b) of the
         Magistrates Act, 1993 (Act No 90 of 1993).

TABLINGS

National Assembly

1. The Speaker

Request from the President, for the National Assembly, in terms of
section 193(5) of the Constitution, to recommend a person for
appointment by the President as Auditor-General.


Dear Madam Speaker,


The term of office of the current Auditor-General Mr S A Fakie expires
on 30 November 2006.


In terms of section 193(4) of the Constitution of the Republic of South
Africa, 1996, the President, acting on the recommendation of the
National Assembly, must appoint the Auditor-General.


Would you kindly initiate the process that will lead to the appointment
of the new Auditor-General.


Regards


signed
T M MBEKI


Referred to the Ad Hoc Committee on the Appointment of the Auditor-
General for consideration and report.

COMMITTEE REPORTS

National Assembly and National Council of Provinces

1. Report of the Joint Budget Committee on Departmental Expenditure for the Second and Third Quarters of 2005/6 Financial Year – July to December 2005[4], dated 24 March 2006:

Part A: Second Quarter Expenditure Report: July - September 2005

By the end of the second quarter of the 2005/06 financial year, Departments had spent an average of 47.50%. The Department of Education was the highest spending Department at 75.18%.

Table 1: Highest spending Departments at the end of the second quarter Expenditure |R’000 |Total Budget |Total |% Total | | | |Expenditur|Expenditu| | | |e |re | | | |to date |to date | | | | | | |Education |12397064 |9319735 |75.18% | |Social Development |56549127 |30147594 |53.31% | |Environmental Affairs |1723111 |895724 |51.98% | |and Tourism | | | | |Housing |5191712 |2695612 |51.92% | |Minerals and Energy |2117585 |1062673 |50.18% |

Table 2 identifies that the Department of Land Affairs was the lowest spending Department, spending 27.71% at the end of the second quarter.

Table 2: Lowest spending Departments at the end of the second quarter Expenditure |R’000 |Total Budget |Total |% Total | | | |Expenditur|Expenditu| | | |e |re | | | |to date |to date | | | | | | |Land Affairs |3881513 |1075561 |27.71% | |Statistics South Africa|691257 |228785 |33.10% | |Sport and Recreation |203628 |72283 |35.50% | |South Africa | | | | |Public Service and |167726 |61210 |36.49% | |Administration | | | | |Provincial and Local |15580777 |5979990 |38.38% | |Government | | | |

Table 3: Overall Expenditure at the end of the second quarter |R’000 |Total |Total |% Total Expenditure | | |Budget |Expenditu| | | | |re | | | | |to date |to date | |Voted Amounts |221405759 |105162886|47.50% | |Central Government |27593328 |11009271 |39.90% | |Administration | | | | |The Presidency |213463 |87614 |41.04% | |Parliament |677255 |332376 |49.08% | |Foreign Affairs |2595071 |997483 |38.44% | |Home Affairs |2972711 |1241252 |41.75% | |Provincial and Local |15580777 |5979990 |38.38% | |Government | | | | |Public Works |5554051 |2370556 |42.68% | | | | | | |Financial and Administrative|15329901 |6856359 |44.73% | |Services | | | | |Government Communications |249130 |108060 |43.37% | |and Information Services | | | | |National Treasury |13990708 |6349285 |45.38% | |Public Enterprises |91983 |45300 |49.25% | |Public Service and |167726 |61210 |36.49% | |Administration | | | | |Public Service Commission |82050 |40120 |48.90% | |S A Management Development |57047 |23599 |41.37% | |Institute | | | | |Statistics South Africa |691257 |228785 |33.10% | | | | | | |Social Services |81371732 |45167669 |55.51% | |Arts and Culture |1082699 |445885 |41.18% | |Education |12397064 |9319735 |75.18% | |Health |9825237 |4608418 |46.90% | |Labour |1313977 |573754 |43.67% | |Social Development |56549127 |30147594 |53.31% | |Sport and Recreation South |203628 |72283 |35.50% | |Africa | | | | | | | | | |Justice and Protection |65272095 |28139503 |43.11% | |Services | | | | |Correctional Services |9234085 |3769074 |40.82% | |Defence |22459432 |9411528 |41.90% | |Independent Complaints |49522 |23839 |48.14% | |Directorate | | | | |Justice and Constitutional |5072061 |2152777 |42.44% | |Development | | | | |Safety and Security |28456995 |12782285 |44.92% | | | | | | |Economic Services and |31838703 |13990084 |43.94% | |Infrastructure Development | | | | |Agriculture |1684738 |813039 |48.26% | |Communications |1017503 |439624 |43.21% | |Environmental Affairs and |1723111 |895724 |51.98% | |Tourism | | | | |Housing |5191712 |2695612 |51.92% | |Land Affairs |3881513 |1075561 |27.71% | |Minerals and Energy |2117585 |1062673 |50.18% | |Science and Technology |1986639 |850527 |42.81% | |Trade and Industry |3076331 |1268513 |41.23% | |Transport |7602159 |3276244 |43.10% | |Water Affairs and Forestry |3557412 |1612567 |45.33% |

Current, Transfer and Capital Expenditure

Departments were already running behind with their capital and current expenditures. In this regard, Departments had recorded an average of 43.81%, 50.09% and 29.52% on Current, Transfer and Capital Expenditure respectively. Current Expenditure

Table 4: Overall Current Expenditure at the end of the second quarter | |Current |Current |% Current | | |Budget |Expenditure |Expenditure | |R’000 | |to date |to date | | | | | | |Voted Amounts |71110801 |31151462 |43.81% | | | | | | |Central Government |7761070 |3745402 |48.26% | |Administration | | | | |The Presidency |188986 |75246 |39.82% | |Parliament |527756 |257628 |48.82% | |Foreign Affairs |2014234 |917537 |45.55% | |Home Affairs |1299059 |642510 |49.46% | |Provincial and Local |229018 |109966 |48.02% | |Government | | | | |Public Works |3502017 |1742515 |49.76% | | | | | | |Financial and |3257125 |1351795 |41.50% | |Administrative | | | | |Services | | | | |Government |170351 |64055 |37.60% | |Communications and | | | | |Information Services | | | | |National Treasury |2074879 |931149 |44.88% | |Public Enterprises |72698 |32295 |44.42% | |Public Service and |163971 |60217 |36.72% | |Administration | | | | |Public Service |80138 |39514 |49.31% | |Commission | | | | |S A Management |30996 |9872 |31.85% | |Development Institute| | | | |Statistics South |664092 |214693 |32.33% | |Africa | | | | | | | | | |Social Services |2768390 |1191574 |43.04% | |Arts and Culture |168770 |117373 |69.55% | |Education |463424 |167738 |36.20% | |Health |699810 |278314 |39.77% | |Labour |891039 |409381 |45.94% | |Social Development |432763 |189905 |43.88% | |Sport and Recreation |112584 |28863 |25.64% | |South Africa | | | | | | | | | |Justice and |51437910 |22638460 |44.01% | |Protection Services | | | | |Correctional Services|7858725 |3291199 |41.88% | |Defence |12837175 |5632954 |43.88% | |Independent |48293 |21116 |43.72% | |Complaints | | | | |Directorate | | | | |Justice and |3949180 |1600662 |40.53% | |Constitutional | | | | |Development | | | | |Safety and Security |26744537 |12092529 |45.21% | | | | | | |Economic Services and|5886306 |2224231 |37.79% | |Infrastructure | | | | |Development | | | | |Agriculture |790689 |253214 |32.02% | |Communications |247141 |116649 |47.20% | |Environmental Affairs|481988 |207102 |42.97% | |and Tourism | | | | |Housing |240851 |67977 |28.22% | |Land Affairs |787380 |325896 |41.39% | |Minerals and Energy |462700 |171479 |37.06% | |Science and |156607 |60669 |38.74% | |Technology | | | | |Trade and Industry |640454 |236113 |36.87% | |Transport |534675 |162849 |30.46% | |Water Affairs and |1543821 |622283 |40.31% | |Forestry | | | |

Table 5 represents the departments with the highest overall current expenditure at the end of the second quarter.

Table 5: Highest Current Expenditure at the end of the second quarter | |Current |Current |% Current | | |Budget |Expenditure |Expenditure | |R’000 | |to date |to date | |Arts and Culture |168770 |117373 |69.55% | |Public Works |3502017 |1742515 |49.76% | |Home Affairs |1299059 |642510 |49.46% | |Public Service |80138 |39514 |49.31% | |Commission | | | | |Parliament |527756 |257628 |48.82% |

Table 6 represents the departments with the lowest overall current expenditure at the end of the second quarter.

Table 6: Lowest Current Expenditure at the end of the second quarter | |Current |Current |% Current | | |Budget |Expenditure |Expenditure | |R’000 | |to date |to date | |Sport and Recreation |112584 |28863 |25.64% | |South Africa | | | | |Housing |240851 |67977 |28.22% | |Transport |534675 |162849 |30.46% | |S A Management |30996 |9872 |31.85% | |Development Institute | | | | |Agriculture |790689 |253214 |32.02% |

Transfers

Table 7 represents the departments overall transfer payments at the end of the second quarter.

Table 7: Overall Transfer Expenditure at the end of the second quarter |R’000 |Transfer |Transfer |% Transfer | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Voted Amounts |144139747 |72194333 |50.09% | | | | | | |Central Government |17703909 |6894851 |38.95% | |Administration | | | | |The Presidency |19222 |11465 |59.65% | |Parliament |97171 |48582 |50.00% | |Foreign Affairs |348927 |56907 |16.31% | |Home Affairs |894215 |470545 |52.62% | |Provincial and Local |15345969 |5867643 |38.24% | |Government | | | | |Public Works |998405 |439709 |44.04% | | | | | | |Financial and |12024632 |5473033 |45.52% | |Administrative Services| | | | |Government |76469 |41799 |54.66% | |Communications and | | | | |Information Services | | | | |National Treasury |11903138 |5404642 |45.41% | |Public Enterprises |18758 |12829 |68.39% | |Public Service and |361 |157 |43.49% | |Administration | | | | |Public Service |183 |0 |0.00% | |Commission | | | | |S A Management |24788 |13212 |53.30% | |Development Institute | | | | |Statistics South Africa|935 |394 |42.14% | | | | | | |Social Services |78443732 |43934645 |56.01% | |Arts and Culture |909567 |328508 |36.12% | |Education |11889082 |9144876 |76.92% | |Health |9097514 |4324571 |47.54% | |Labour |350368 |147313 |42.05% | |Social Development |56111169 |29946478 |53.37% | |Sport and Recreation |86032 |42899 |49.86% | |South Africa | | | | | | | | | |Justice and Protection |10519254 |4431269 |42.13% | |Services | | | | |Correctional Services |38124 |54312 |142.46% | |Defence |9357388 |3778574 |40.38% | |Independent Complaints |149 |125 |83.89% | |Directorate | | | | |Justice and |695622 |420795 |60.49% | |Constitutional | | | | |Development | | | | |Safety and Security |427971 |177463 |41.47% | | | | | | |Economic Services and |25448220 |11460535 |45.03% | |Infrastructure | | | | |Development | | | | |Agriculture |864993 |519155 |60.02% | |Communications |763882 |319497 |41.83% | |Environmental Affairs |1190330 |666127 |55.96% | |and Tourism | | | | |Housing |4947840 |2624893 |53.05% | |Land Affairs |3058267 |742033 |24.26% | |Minerals and Energy |1647942 |890847 |54.06% | |Science and Technology |1829227 |789100 |43.14% | |Trade and Industry |2424187 |1029835 |42.48% | |Transport |7057209 |3111702 |44.09% | |Water Affairs and |1664343 |767346 |46.11% | |Forestry | | | |

Table 8 represents the departments’ with the highest overall transfer expenditure at the end of the second quarter.

Table 8: Highest Transfer Expenditure at the end of the second quarter |R’000 |Transfer |Transfer |% Transfer | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Correctional Services |38124 |54312 |142.46% | |Independent Complaints|149 |125 |83.89% | |Directorate | | | | |Education |11889082 |9144876 |76.92% | |Public Enterprises |18758 |12829 |68.39% | |Justice and |695622 |420795 |60.49% | |Constitutional | | | | |Development | | | |

Table 9 represents the departments with the lowest overall transfer expenditure at the end of the second quarter.

Table 9: Lowest Transfer Expenditure at the end of the second quarter |R’000 |Transfer |Transfer |% Transfer | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Public Service |183 |0 |0.00% | |Commission | | | | |Foreign Affairs |348927 |56907 |16.31% | |Land Affairs |3058267 |742033 |24.26% | |Arts and Culture |909567 |328508 |36.12% | |Provincial and Local |15345969 |5867643 |38.24% | |Government | | | |

Capital Expenditure

Table 10 represents the departments’ overall capital expenditure at the end of the second quarter.

Table 10: Overall Transfer Expenditure at the end of the second quarter |R’000 |Capital |Capital Expenditure|% Capital | | |Budget | |Expenditure | | | |to date |to date | |Voted Amounts |6155211 |1817091 |29.52% | | | | | | |Central Government |2128349 |369018 |17.34% | |Administration | | | | |The Presidency |5255 |903 |17.18% | |Parliament |52328 |26166 |50.00% | |Foreign Affairs |231910 |23039 |9.93% | |Home Affairs |779437 |128197 |16.45% | |Provincial and Local |5790 |2381 |41.12% | |Government | | | | |Public Works |1053629 |188332 |17.87% | | | | | | |Financial and |48144 |31531 |65.49% | |Administrative | | | | |Services | | | | |Government |2310 |2206 |95.50% | |Communications and | | | | |Information Services | | | | |National Treasury |12691 |13494 |106.33% | |Public Enterprises |527 |176 |33.40% | |Public Service and |3394 |836 |24.63% | |Administration | | | | |Public Service |1729 |606 |35.05% | |Commission | | | | |S A Management |1263 |515 |40.78% | |Development Institute | | | | |Statistics South |26230 |13698 |52.22% | |Africa | | | | | | | | | |Social Services |159610 |41450 |25.97% | |Arts and Culture |4362 |4 |0.09% | |Education |44558 |7121 |15.98% | |Health |27913 |5533 |19.82% | |Labour |72570 |17060 |23.51% | |Social Development |5195 |11211 |215.80% | |Sport and Recreation |5012 |521 |10.40% | |South Africa | | | | | | | | | |Justice and Protection|3314931 |1069774 |32.27% | |Services | | | | |Correctional Services |1337236 |423563 |31.67% | |Defence |264869 |0 |0.00% | |Independent Complaints|1080 |2598 |240.56% | |Directorate | | | | |Justice and |427259 |131320 |30.74% | |Constitutional | | | | |Development | | | | |Safety and Security |1284487 |512293 |39.88% | | | | | | |Economic Services and |504177 |305318 |60.56% | |Infrastructure | | | | |Development | | | | |Agriculture |29056 |40670 |139.97% | |Communications |6480 |3478 |53.67% | |Environmental Affairs |50793 |22495 |44.29% | |and Tourism | | | | |Housing |3021 |2742 |90.76% | |Land Affairs |35866 |7632 |21.28% | |Minerals and Energy |6943 |347 |5.00% | |Science and Technology|805 |758 |94.16% | |Trade and Industry |11690 |2565 |21.94% | |Transport |10275 |1693 |16.48% | |Water Affairs and |349248 |222938 |63.83% | |Forestry | | | |

Table 11 represents the departments with the highest overall capital expenditure at the end of the second quarter.

Table 11: Highest Capital Expenditure at the end of the second quarter |R’000 |Capital |Capital |% Capital | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Independent Complaints |1080 |2598 |240.56% | |Directorate | | | | |Social Development |5195 |11211 |215.80% | |Agriculture |29056 |40670 |139.97% | |National Treasury |12691 |13494 |106.33% | |Government |2310 |2206 |95.50% | |Communications and | | | | |Information Services | | | |

Table 12 represents the departments with the lowest overall capital expenditure at the end of the second quarter.

Table 12: Lowest Capital Expenditure at the end of the second quarter |R’000 |Capital |Capital |% Capital | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Defence |264869 |0 |0.00% | |Arts and Culture |4362 |4 |0.09% | |Minerals and Energy |6943 |347 |5.00% | |Foreign Affairs |231910 |23039 |9.93% | |Sport and Recreation |5012 |521 |10.40% | |South Africa | | | |

Part B: Third Quarter Expenditure Report

The first quarter expenditure report indicated that Departments started the financial year with a low expenditure of 5% in April 2005, increasing sharply to 11.13% in May and decreasing to 7% in June 2005. This resulted in an overall expenditure of 23.14% at the end of the first quarter. At the end of the second quarter average departmental expenditure increased to 43.81%. By the end of the third quarter, expenditure increased to an average of 70.47%.

Table 13: Overall Departments’ expenditure at the end of the third quarter |R’000 |Total Budget |Total Expenditure |% Total | | | | |Expenditure | | | |to date |to date | | | | | | |Voted Amounts |225656770 |159024684 |70.47% | | | | | | |Central Government |28219765 |18837036 |66.75% | |Administration | | | | |The Presidency |216463 |130166 |60.13% | |Parliament |672412 |511063 |76.00% | |Foreign Affairs |2693766 |1607516 |59.68% | |Home Affairs |3032461 |2140533 |70.59% | |Provincial and Local |15960427 |10632235 |66.62% | |Government | | | | |Public Works |5644236 |3815523 |67.60% | | | | | | |Financial and |15562426 |10181606 |65.42% | |Administrative | | | | |Services | | | | |Government |249130 |167872 |67.38% | |Communications and | | | | |Information Services | | | | |National Treasury |14172795 |9326986 |65.81% | |Public Enterprises |92653 |61300 |66.16% | |Public Service and |187271 |111126 |59.34% | |Administration | | | | |Public Service |86106 |62019 |72.03% | |Commission | | | | |S A Management |57047 |37229 |65.26% | |Development Institute| | | | |Statistics South |717424 |415074 |57.86% | |Africa | | | | | | | | | |Social Services |82081554 |65230686 |79.47% | |Arts and Culture |1108944 |690374 |62.26% | |Education |12613190 |11489262 |91.09% | |Health |9952861 |7088117 |71.22% | |Labour |1308738 |853933 |65.25% | |Social Development |56640033 |44996060 |79.44% | |Sport and Recreation |457788 |112940 |24.67% | |South Africa | | | | | | | | | |Justice and |65710461 |42901177 |65.29% | |Protection Services | | | | |Correctional Services|9324220 |5877445 |63.03% | |Defence |22670482 |13523590 |59.65% | |Independent |49522 |36231 |73.16% | |Complaints | | | | |Directorate | | | | |Justice and |5185733 |3264965 |62.96% | |Constitutional | | | | |Development | | | | |Safety and Security |28480504 |20198946 |70.92% | | | | | | |Economic Services and|34082564 |21874179 |64.18% | |Infrastructure | | | | |Development | | | | |Agriculture |1967768 |1186745 |60.31% | |Communications |1031683 |624408 |60.52% | |Environmental Affairs|1753307 |1290751 |73.62% | |and Tourism | | | | |Housing |5265672 |4111809 |78.09% | |Land Affairs |3897117 |1782509 |45.74% | |Minerals and Energy |2252371 |1565809 |69.52% | |Science and |2041936 |1518930 |74.39% | |Technology | | | | |Trade and Industry |3907420 |2409993 |61.68% | |Transport |8029654 |4899222 |61.01% | |Water Affairs and |3935636 |2484003 |63.12% | |Forestry | | | |

The Department of Education was the highest spending department at the end of the third quarter, with a recorded expenditure of 91.09%. The department with the secon

d highest expenditure at the end of the third quarter is the department of Social Development. Table 14: Highest spending Departments at the end of the third quarter Expenditure |R’000 |Total |Total |% Total | | |Budget |Expenditure |Expenditure | | | |to date |to date | | | | | | |Education |12613190 |11489262 |91.09% | |Social Development |56640033 |44996060 |79.44% | |Housing |5265672 |4111809 |78.09% | |Parliament |672412 |511063 |76.00% | |Science and Technology |2041936 |1518930 |74.39% |

Sport and Recreation South Africa was the lowest spending department at the end of the third quarter, with a recorded expenditure of 24.67%. However, Departments have generally spent a large portion of their budgets.

Table 15: Lowest spending Departments at the end of the third quarter Expenditure |R’000 |Total Budget|Total |% Total | | | |Expenditure |Expenditure | | | |to date |to date | | | | | | |Sport and Recreation South |457788 |112940 |24.67% | |Africa | | | | |Land Affairs |3897117 |1782509 |45.74% | |Statistics South Africa |717424 |415074 |57.86% | |Public Service and |187271 |111126 |59.34% | |Administration | | | | |Defence |22670482 |13523590 |59.65% |

Current, Transfer and Capital Expenditure

Departments spent an average of 67.77%, 72.49% and 54.33% in Current, Transfer and Capital Expenditure respectively. The slow trend of spending on capital expenditure is similar to that of previous financial years.

Current Expenditure

Table 16 represents the departments’ overall current expenditure at the end of the third quarter.

Table 16: Overall Current Expenditure at the end of the third quarter | |Current |Current |% Current | | |Budget |Expenditure |Expenditure | |R’000 | |to date |to date | | | | | | |Voted Amounts |71840748 |48689761 |67.77% | | | | | | |Central Government |8147126 |5833336 |71.60% | |Administration | | | | |The Presidency |186881 |113122 |60.53% | |Parliament |556929 |398941 |71.63% | |Foreign Affairs |2089476 |1392068 |66.62% | |Home Affairs |1451093 |1076761 |74.20% | |Provincial and Local |248939 |177571 |71.33% | |Government | | | | |Public Works |3613808 |2674873 |74.02% | | | | | | |Financial and |3193449 |2077458 |65.05% | |Administrative Services| | | | |Government |167409 |104548 |62.45% | |Communications and | | | | |Information Services | | | | |National Treasury |1974940 |1350405 |68.38% | |Public Enterprises |75586 |48114 |63.65% | |Public Service and |182624 |105192 |57.60% | |Administration | | | | |Public Service |84175 |60930 |72.38% | |Commission | | | | |S A Management |29806 |17204 |57.72% | |Development Institute | | | | |Statistics South Africa|678909 |391065 |57.60% | | | | | | |Social Services |2940682 |1934069 |65.77% | |Arts and Culture |171506 |182691 |106.52% | |Education |508856 |255949 |50.30% | |Health |714706 |416115 |58.22% | |Labour |952341 |599563 |62.96% | |Social Development |469469 |430013 |91.60% | |Sport and Recreation |123804 |49738 |40.17% | |South Africa | | | | | | | | | |Justice and Protection |51326059 |35317270 |68.81% | |Services | | | | |Correctional Services |7873216 |5071712 |64.42% | |Defence |12760614 |8916338 |69.87% | |Independent Complaints |46989 |33088 |70.42% | |Directorate | | | | |Justice and |4017696 |2501407 |62.26% | |Constitutional | | | | |Development | | | | |Safety and Security |26627544 |18794725 |70.58% | | | | | | |Economic Services and |6233432 |3527628 |56.59% | |Infrastructure | | | | |Development | | | | |Agriculture |777553 |401873 |51.68% | |Communications |278601 |177759 |63.80% | |Environmental Affairs |495988 |296144 |59.71% | |and Tourism | | | | |Housing |242875 |112531 |46.33% | |Land Affairs |829459 |507465 |61.18% | |Minerals and Energy |481114 |265459 |55.18% | |Science and Technology |161637 |127336 |78.78% | |Trade and Industry |695053 |388271 |55.86% | |Transport |567696 |280077 |49.34% | |Water Affairs and |1703456 |970713 |56.98% | |Forestry | | | |

Table 17 represents the departments with the highest overall current expenditure at the end of the third quarter.

Table 17: Highest Current Expenditure at the end of the third quarter | |Current |Current |% Current | | |Budget |Expenditure |Expenditure | |R’000 | |to date |to date | |Arts and Culture |171506 |182691 |106.52% | |Social Development |469469 |430013 |91.60% | |Science and |161637 |127336 |78.78% | |Technology | | | | |Home Affairs |1451093 |1076761 |74.20% | |Public Works |3613808 |2674873 |74.02% |

Table 18 represents the departments with the lowest overall current expenditure at the end of the third quarter.

Table 18: Lowest Current Expenditure at the end of the third quarter | |Current |Current |% Current | | |Budget |Expenditure |Expenditure | |R’000 | |to date |to date | |Sport and Recreation |123804 |49738 |40.17% | |South Africa | | | | |Housing |242875 |112531 |46.33% | |Transport |567696 |280077 |49.34% | |Education |508856 |255949 |50.30% | |Agriculture |777553 |401873 |51.68% |

Transfers

Table 19 represents the departments’ overall transfer expenditure at the end of the third quarter.

Table 19: Overall Transfer Expenditure at the end of the third quarter |R’000 |Transfer |Transfer |% Transfer | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Voted Amounts |147416790 |106858531 |72.49% | | | | | | |Central Government |18133241 |12205318 |67.31% | |Administration | | | | |The Presidency |25827 |15078 |58.38% | |Parliament |96826 |72873 |75.26% | |Foreign Affairs |373013 |164569 |44.12% | |Home Affairs |955958 |765277 |80.05% | |Provincial and Local |15705000 |10451571 |66.55% | |Government | | | | |Public Works |976617 |735950 |75.36% | | | | | | |Financial and |12295839 |8049456 |65.46% | |Administrative Services | | | | |Government |76539 |59170 |77.31% | |Communications and | | | | |Information Services | | | | |National Treasury |12176094 |7956839 |65.35% | |Public Enterprises |16540 |12876 |77.85% | |Public Service and |419 |291 |69.45% | |Administration | | | | |Public Service |202 |1 |0.50% | |Commission | | | | |S A Management |24785 |19509 |78.71% | |Development Institute | | | | |Statistics South Africa |1260 |770 |61.11% | | | | | | |Social Services |79048273 |63246775 |80.01% | |Arts and Culture |933076 |507608 |54.40% | |Education |12090008 |11225504 |92.85% | |Health |9200577 |6663339 |72.42% | |Labour |341671 |245288 |71.79% | |Social Development |56153969 |44542436 |79.32% | |Sport and Recreation |328972 |62600 |19.03% | |South Africa | | | | | | | | | |Justice and Protection |10809492 |5493184 |50.82% | |Services | | | | |Correctional Services |39205 |59272 |151.18% | |Defence |9644999 |4607252 |47.77% | |Independent Complaints |149 |68 |45.64% | |Directorate | | | | |Justice and |697133 |545991 |78.32% | |Constitutional | | | | |Development | | | | |Safety and Security |428006 |280601 |65.56% | | | | | | |Economic Services and |27129945 |17863798 |65.85% | |Infrastructure | | | | |Development | | | | |Agriculture |1145546 |714038 |62.33% | |Communications |746382 |439192 |58.84% | |Environmental Affairs |1201240 |959681 |79.89% | |and Tourism | | | | |Housing |5017836 |3995084 |79.62% | |Land Affairs |2991888 |1261268 |42.16% | |Minerals and Energy |1764314 |1299216 |73.64% | |Science and Technology |1879494 |1390090 |73.96% | |Trade and Industry |3194666 |2018635 |63.19% | |Transport |7447470 |4616632 |61.99% | |Water Affairs and |1741109 |1169962 |67.20% | |Forestry | | | |

Table 20 represents the departments with the highest overall transfer expenditure at the end of the third quarter.

Table 20: Highest Transfer Expenditure at the end of the third quarter |R’000 |Transfer |Transfer |% Transfer | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Correctional Services|39205 |59272 |151.18% | |Education |12090008 |11225504 |92.85% | |Home Affairs |955958 |765277 |80.05% | |Environmental Affairs|1201240 |959681 |79.89% | |and Tourism | | | | |Housing |5017836 |3995084 |79.62% |

Table 21 represents the departments with the lowest overall transfer expenditure at the end of the third quarter.

Table 21: Lowest Transfer Expenditure at the end of the third quarter |R’000 |Transfer |Transfer |% Transfer | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Public Service |202 |1 |0.50% | |Commission | | | | |Sport and Recreation |328972 |62600 |19.03% | |South Africa | | | | |Land Affairs |2991888 |1261268 |42.16% | |Foreign Affairs |373013 |164569 |44.12% | |Independent |149 |68 |45.64% | |Complaints | | | | |Directorate | | | |

Capital Expenditure

Table 22 represents the departments’ overall capital expenditure at the end of the third quarter.

Table 22: Overall Capital Expenditure at the end of the third quarter |R’000 |Capital |Capital |% Capital | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Voted Amounts |6399232 |3476392 |54.33% | | | | | | |Central |1939398 |798382 |41.17% | |Government | | | | |Administration | | | | |The Presidency |3755 |1966 |52.36% | |Parliament |18657 |39249 |210.37% | |Foreign Affairs |231277 |50879 |22.00% | |Home Affairs |625410 |298495 |47.73% | |Provincial and |6488 |3093 |47.67% | |Local Government| | | | |Public Works |1053811 |404700 |38.40% | | | | | | |Financial and |73138 |54692 |74.78% | |Administrative | | | | |Services | | | | |Government |5182 |4154 |80.16% | |Communications | | | | |and Information | | | | |Services | | | | |National |21761 |19742 |90.72% | |Treasury | | | | |Public |527 |310 |58.82% | |Enterprises | | | | |Public Service |4228 |5643 |133.47% | |and | | | | |Administration | | | | |Public Service |1729 |1088 |62.93% | |Commission | | | | |S A Management |2456 |516 |21.01% | |Development | | | | |Institute | | | | |Statistics South|37255 |23239 |62.38% | |Africa | | | | | | | | | |Social Services |92599 |49842 |53.83% | |Arts and Culture|4362 |75 |1.72% | |Education |14326 |7809 |54.51% | |Health |37578 |8663 |23.05% | |Labour |14726 |9082 |61.67% | |Social |16595 |23611 |142.28% | |Development | | | | |Sport and |5012 |602 |12.01% | |Recreation South| | | | |Africa | | | | | | | | | |Justice and |3574910 |2090723 |58.48% | |Protection | | | | |Services | | | | |Correctional |1411799 |746461 |52.87% | |Services | | | | |Defence |264869 |0 |0.00% | |Independent |2384 |3075 |128.98% | |Complaints | | | | |Directorate | | | | |Justice and |470904 |217567 |46.20% | |Constitutional | | | | |Development | | | | |Safety and |1424954 |1123620 |78.85% | |Security | | | | | | | | | |Economic |719187 |482753 |67.12% | |Services and | | | | |Infrastructure | | | | |Development | | | | |Agriculture |44669 |70834 |158.58% | |Communications |6700 |7457 |111.30% | |Environmental |56079 |34926 |62.28% | |Affairs and | | | | |Tourism | | | | |Housing |4961 |4194 |84.54% | |Land Affairs |75770 |13776 |18.18% | |Minerals and |6943 |1134 |16.33% | |Energy | | | | |Science and |805 |1504 |186.83% | |Technology | | | | |Trade and |17701 |3087 |17.44% | |Industry | | | | |Transport |14488 |2513 |17.35% | |Water Affairs |491071 |343328 |69.91% | |and Forestry | | | |

Table 23 represents the departments with the highest overall capital expenditure at the end of the third quarter.

Table 23: Highest Capital Expenditure at the end of the third quarter |R’000 |Capital |Capital |% Capital | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Parliament |18657 |39249 |210.37% | |Science and Technology|805 |1504 |186.83% | |Agriculture |44669 |70834 |158.58% | |Social Development |16595 |23611 |142.28% | |Public Service and |4228 |5643 |133.47% | |Administration | | | |

Table 24 represents the departments with the lowest overall capital expenditure at the end of the third quarter.

Table 24: Highest Capital Expenditure at the end of the third quarter |R’000 |Capital |Capital |% Capital | | |Budget |Expenditure |Expenditure | | | |to date |to date | |Defence |264869 |0 |0.00% | |Arts and Culture |4362 |75 |1.72% | |Sport and Recreation |5012 |602 |12.01% | |South Africa | | | | |Minerals and Energy |6943 |1134 |16.33% | |Transport |14488 |2513 |17.35% |

Conclusion

Departments had spent a significant portion of their budgets at the end of the third quarter. However, the research unit had not been able to contact departments regarding their expenditure trends due to time constraints. Sources

• Statement of National and Provincial Governments’ revenue, expenditure
  and National borrowing as at 30 September 2005; National Treasury.
• Statement of National and Provincial Governments’ revenue, expenditure
  and National borrowing as at 31 December 2005; National Treasury.

Report to be considered.

1. Annual Report of the Joint Budget Committee, dated 28 March 2006:

         FOR THE PERIOD FROM JANUARY TO DECEMBER 2005,
                      DATED 24 MARCH 2006
   

2. Name of the Committee: Joint Budget Committee (JBC)

     Co-Chairpersons: Ms L L Mabe, MP (NA) and Mr B J  Mkhaliphi, MP
     (NCOP)
   
   
     Committee Secretary: Mr K Dlamini
   

3. Co-Chairpersons’ overview

     During the year under review, the Committee continued
     implementing its mandate. A major milestone reached during the
     year was the Committee’s adoption of its strategic plan which
     incorporates a report envisaged in item 9 of its Terms of
     Reference.
   
   
     Challenges persisted. To gain a clear picture of progress made,
     the Committee will have to embark on a strategic session in
     order to appreciate the extent of work done in comparison with
     its long term programme. Challenges that are being encountered
     include, amongst other:
   - the absence of dedicated members to this Committee
         - the frequent restructuring of Committees which brings about
           change in this Committee
         - the description of this Committee as a Joint Budget
           Committee as it creates an impression that it operates like
           any other joint committee yet its mandate is complex and
           elaborate.
   
   
     Amongst the things that the Committee has realised during the
     year is the strengthening of co-ordination with other
     Committees, like the two sectoral Committees on Finance.
     Deliberations with these Committees gave the Joint Budget
     Committee insight with relation to the functioning of the
     economy and fiscal monitoring exercise.
   
   
     Another challenge with regard to resources is the absence of a
     dedicated researcher. As a Committee which is still in a
     developmental stage and whose mandate is so complex, it is
     imperative that we are provided with a dedicated researcher.
   

   1. Vision and mission of the Committee

   3.1 Mandate

     The JBC’s mandate is found in its Terms of Reference as resolved
     by both Houses of Parliament on 25  June  2004.  The  resolution
     established the  Committee to:
   
   
     (1) consider proposed allocations in the Medium-Term Expenditure
     Framework  and  the  Appropriation  Bill   and   whether   these
     allocations are broadly in keeping with the policy directions of
     the Government;
   
   
     (2) make proposals regarding  the  processes  Parliament  should
     follow with regard to its role in the developing of  budgets  in
     accordance with constitutional requirements;
   
   
     (3) on a regular basis monitor monthly published actual  revenue
     and expenditure per department, and to  ascertain  whether  they
     are in line with budget projections;
   
   
     (4)  consider,  when  tabled,  the  Medium-Term  Budget   Policy
     Statement, with the exception of those sections dealing with the
     macro-economic situation and revenue;
   
   
     (5) conduct hearings on the  Medium-Term  Expenditure  Framework
     and Budget Policy Review Document, with the exception  of  those
     sections dealing with the macro-economic situation and revenue;
   
   
     (6) exercise those powers in Joint Rule 32 that  may  assist  in
     carrying out its functions;
   
   
     (7) report—
     (a) on the Medium-Term Budget  Policy  Statement  regarding  the
     matters referred to in paragraph 5; and (b) quarterly  regarding
     the matters referred to in paragraph 4; and
     (8) consider and make proposals  regarding  the  nature  of  its
     functions relative to those of other committees  in  respect  of
     the budget process and conducting oversight,  the  Committee  to
     report thereon from time to time as  may  be  necessary  and  to
     submit a final report by not later than  the  end  of  the  next
     budget cycle in Parliament.
   
   
     The Committee’s vision and mission are incorporated in its
     strategic plan adopted by the Committee on 22 June 2005 and
     ultimately by Parliament on 16 November 2005.
   

   3.2 Vision

     The JBC’s vision is that of having an effective role in budget
     management, facilitating improved spending outcomes in terms of:    i) aligning spending outcomes with government priorities; and   ii) ensuring value for money.
   

   3.3 Mission

     The Joint Budget Committee’s mission is to practice effective
     oversight over state spending on consolidated budget.
   

   1. List of public entities over which the committee exercise oversight

      The Committee monitors monthly expenditure by all Government Departments and reports to Parliament quarterly.

   2. Number of meetings held and those cancelled

      No of meetings held: 31 (Thirteen of the above meetings were held jointly with the Finance Committees and one with the Focus Group on Money Bills)

      No of meetings cancelled: 9 (Of the above called meetings, four were cancelled because attendance was very poor [less than four members].

      Generally, attendance of meetings is very poor especially when the Committee is meeting separately from the Finance Committees.

   3. Legislation referred to the committee (Finalised and not finalised): indicate the following:-

      None

   4. Papers (International Agreements, Protocols, Reports etc) referred to the Committee: indicate the following:-

    8. Local oversight visits


  The Committee did not undertake any oversight visit but Messrs
  Mkhaliphi and Nene attended three meetings of the Budget Council
  during the year, two in Pretoria  and one in Mpumalanga.


  It is by convention that Chairpersons of the Budget and Finance
  Committees attend the meetings of the Budget Council as observers.

  The Budget Council consists of the Minister of Finance, the MECs of
  Finance and National and Provincial Treasuries. Its main function is
  to co-ordinate the different interests of national and provincial
  governments and to make sure that agreement is reached on how to share
  revenue.

  These meetings assist in providing the Co-Chairpersons with insight
  into the discussions and activities taking place during the budget
  preparation phase. Such insight then translates into proper guidance
  and direction of the whole Committee when the budget is tabled in
  Parliament and referred to the Committee.

    9. International Visits


  The Committee did not undertake any visits during the period covered
  by the Report. However, it is the Committee’s intention to undertake
  an international study tour of a country where the Budget Committee
  has been fully operational for a long time.

 At the request of the Speaker and the Chairperson of the NCOP the Co-
 Chairpersons met with the following international delegations who
 visited Parliament:

- Speaker of the Zimbabwean Parliament
- Speaker of Cote d’Ivoire
- United Nations Development Fund for Women (UNIFEM) and National
  Institute of Public Finance


   10. Budget Vote

  There was not a budget vote officially referred to the Committee.
  However, the Committee deployed some of its members to attend various
  Portfolio Committees’ hearings on departmental budget votes. The
  Committee is yet to develop a work method for interacting with
  sectoral committees when dealing with budget votes.

   11. Annual reports of the Executive (30 September)


  In exercising its monitoring function over departmental expenditure,
  the Committee does refer to the contents of various annual reports
  although such reports are not officially referred to the Committee.


   12. Other committee activities (briefings on other issues,
       workshops, conferences)


  12.1 Workshops


  The Committee held two workshops as an ongoing exercise of
  unpacking its Terms of Reference.


  12.1.1


  The first workshop was held in Parliament in February. Out of the
  workshop a new internal discussion document was produced.


  12.1.2


  The second one was held in Gordon’s Bay in May. A report,
  incorporating the Committee’s strategic plan as well as a report
  envisaged in item 9 of the Terms of Reference, was produced and tabled
  in Parliament.


                 • Consideration date by the committee – 22 June 2005
                 • Report publication (ATC date) – 14 November 2005
                 • Debate in the House – NCOP: 14 September 2005
                                       o NA: 16 November 2005


  12.2 Hearings


  Hearings were held on the following:

  12.2.1 Provincial expenditure
  Hearings on Provincial expenditure were held jointly with the Select
  Committee on Finance on 18 and 21 February 2005. The following
  institutions and individuals appeared before the Committees:


  ➢ Pandor, Ms N (MP): Minister of Education
  ➢ National Department of Education
  ➢ KwaZulu-Natal Department of Education
  ➢ National Department of Housing
  ➢ KwaZulu-Natal Department of Housing
  ➢ National Department of Health
  ➢ Eastern Cape Department of Health
  ➢ Gauteng Department of Health
  ➢ KwaZulu-Natal Department of Health
  ➢ Limpopo Department of Health
  ➢ National Treasury


  Report on hearings was tabled by the Select Committee on Finance.


  12.2.2 Budget for 2005/6


  The Committee sat jointly with Finance Portfolio and Select Committees
  during the hearings on the 2005/6 budget from 25 February to 04 March
  2005. The following institutions and individuals appeared before the
  Committee:


     ➢ Manuel, Mr T (MP): Minister of Finance
     ➢ National Treasury
     ➢ South African Revenue Service (SARS)
     ➢ South African Institute of Chartered Accountants (SAICA)
     ➢ Business Unity of South Africa (BUSA)
     ➢ Chambers of Commerce and Industry South Africa (CHAMSA)
     ➢ Federation of Unions of South Africa (FEDUSA)
     ➢ Ballim, Mr G: Chief Economist – Standard Bank
     ➢ Nhlapo-Hlophe, Ms J: Human Development Policy Analyst
     ➢ Twine, Mr T: Director and senior economist: Econometrix (Pty)
       LTD
     ➢ Kosch, Prof, S: Tax expert – University of Pretoria


  Report on hearings was tabled by the Finance Committees.


  12.2.3 Appropriation Bill


  The Appropriation Bill was, amongst other Committees, referred to the
  JBC on 23 February 2005 and in line with its mandate, the Joint Budget
  Committee held its own hearings on the Bill on 23 May 2005:
  The following Departments appeared:
      ➢ Agriculture and Land Affairs
      ➢ Health
      ➢ Public Works

  The Committee adopted its report on 22 June 2005 and it was
  published in the ATC on 3 August 2005. It was debated in the NCOP
  and NA on 14 September 2005 and 16 November 2005, respectively.

  12.2.4 Expenditure Reports

  The Committee, having identified irregular spending patterns, called
  the Department of Communications for a hearing on 22 June 2005. The
  Committee compiled a Report on the hearings and adopted it on 31
  August 2005 and it appeared on the ATC on 15 September 2005. The
  Report was considered and adopted by the NA on 16 November 2005 and is
  due to be considered by the NCOP.


  12.2.5 Medium-Term Budget Policy Statement (MTBPS)
  The MTBPS was tabled in Parliament by the Minister of Finance on 25
  October 2005 and was referred to, amongst other, the JBC for
  consideration in line with its mandate.


  The MTBPS is aimed at  providing  a  pre-budget  view  on  the  macro-
  economic context, assumptions and projections underlying  the  Budget,
  the medium-term fiscal policy framework, and  the  main  divisions  of
  revenue between functions and spheres of government.


  Having been briefed by the Minister of Finance (Mr  T  A  Manuel)  and
  National Treasury, the JBC held hearings on the MTBPS from 27  October
  to and 02 November 2005 and adopted its report  to  Parliament  on  11
  November 2005. (See table under par 7).


  The  following  Departments,  institutions  and  individuals  appeared
  before the Committee and made presentations:


  A. DEPARTMENTS
      ➢ Department of Agriculture
      ➢ Department of Communications (Minister I Matsepe-Cassaburi)
      ➢ Department of Correctional Services
      ➢ Department of Defence
      ➢ Department of Education
      ➢ Department of Health
      ➢ Department of Home Affairs
      ➢ Department of Housing
      ➢ Department of Justice and Constitutional Development
      ➢ Department of Land Affairs
      ➢ Department of Provincial and Local Government
      ➢ Department of Public Works
      ➢ Department of Safety and Security
      ➢ Department of Social Development
      ➢ Department of Trade and Industry
      ➢ Department of Transport
      ➢ Department of Water Affairs and Forestry

  B. OTHER INSTITUTIONS


     ➢ BUSA
     ➢ FEDUSA
     ➢ NAFU
     ➢ People’s Budget
     ➢ SALGA


  C. INDIVIDUALS


     ➢ Mr C Mlatsheni
     ➢ Ms N King-Conradie
     ➢ Ms N Moola


  D. WRITTEN SUBMISSIONS (no oral presentations)


     ➢ Idasa
     ➢ Institute for Security Studies

1. Budget of the committee

Amount allocated for 2004/5 = R333 532

  Less: Total Expenditure =                               R166 425
                                                  ----------------------
-----
             - Catering =                            R12 379
             - Provincial Visits=                    R60 817
             - Public Hearings =                          R58 625
        - Workshops =                          R31 104
        - Research (MTBPS)=                    R  3 500
                                                 ----------------------- ------
  Less: Transfer to Consolidated Fund                          R  79 103
            Transfer to Staff Travel                                 R 10 100

    -----------------------------
    Balance (as at 02 December 2005)                                 R 77 904


  14.  OUTSTANDING MATTERS:

  Committee reports on Expenditure Statements for the second and third
  quarters of 2005/6 financial year (July, August, September October,
  November and December 2005).


          i. Referral date – 30 August 2005
         ii. Consideration date by the committee – Outstanding

1. SUPPORT STAFF

Control Committee Secretary: Mr L Pakati

Committee Secretary: Mr K Dlamini

Committee Assistant: Mr B Viljoen

Secretary to Co-Chairperson (NA): Ms Z Vice

Secretary to Co-Chairperson (NCOP): Ms Z Mkutukana

Researcher (Research Unit): Ms B Diutlwileng (until 10 October 2005)

Report to be considered.

                       THURSDAY, 20 APRIL 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Assent by President in respect of Bills

(1)     Electronic Communications Bill [B 9B – 2005] – Act No 36 of
    2005 (assented to and signed by President on 11 April 2006).
(2)     Precious Metals Bill [B 30D – 2005] – Act No 37 of 2005
    (assented to and signed by President on 15 April 2006).

1. Draft Bills submitted in terms of Joint Rule 159

(1)     Tobacco Products Control Amendment Bill, 2006, submitted by the
     Minister of Health on 4 April 2006.


        Referred to the Portfolio Committee on Health and the Select
     Committee on Social Services.


(2)     Deeds Registries Amendment Bill, 2006, submitted by the
     Minister of Agriculture and Land Affairs on 9 April 2006.


        Referred to the Portfolio Committee on Agriculture and Land
     Affairs and the Select Committee on Land and Environmental Affairs.


(3)     Corporate Laws Amendment Bill, 2006, submitted by the Minister
     of Trade and Industry on 5 April 2006.
        Referred to the Portfolio Committee on Trade and Industry and
    the Select Committee on Economic and Foreign Affairs.

1. Membership of Committees

 1) The following changes have been made to the membership of Joint
    Committees, viz:
    Improvement of Quality of Life and Status of Women:
    Appointed: Mdaka, Ms N M


    Improvement of Quality of Life and Status of  Children,  Youth  and
    Disabled Persons:
    Appointed: Mdaka, Ms N M

National Assembly

1. Membership of Committees

 (1)    The following changes have been made to the membership of
     Portfolio Committees, viz:


    Agriculture and Land Affairs:
    Appointed: Lucas, Mr E T


    Arts and Culture:
    Appointed: Biyela, Inkosi B P, Rabinowitz, Dr R (Alt)


    Communications:
    Appointed: Swart, Adv P S


    Finance:
    Appointed: Bekker, Mr H J (Alt)


    Foreign Affairs: Subcommittee on African Union:
    Appointed: Skosana, Mr B M (Alt), Vos, Ms S  C,  Joubert,  Mr  L  K
    (Alt)


    Housing:
    Appointed: Mdaka, Ms N M, Zikalala, Ms C N (Alt)


    Justice and Constitutional Development:
    Appointed: Seaton, Ms S A (Alt)


    Public Enterprises:
    Appointed: Chang, Prof E S, Bekker, Mr H J (Alt)


    Public Service and Administration:
    Appointed: Bhengu, Mr M J (Alt)


    Public Works:
    Appointed: Dhlamini, Mr B W (Alt), Mdaka, Ms N M


    Safety and Security:
    Appointed: Mncwango, Mr M A (Alt)
    Social Development:
    Appointed: Sibuyana, Mr M W (Alt)


    Transport:
    Appointed: Vezi, Mr E T


    Water Affairs and Forestry:
    Appointed: Vezi, Mr E T (Alt)


 (3)    The following changes have been made to the membership of
    Standing Committees, viz:


    Public Accounts:
    Appointed: Bekker, Mr H J



                      WEDNESDAY, 26 APRIL 2006

ANNOUNCEMENTS

National Assembly

The Speaker

1. The Speaker

   (1) The Speaker received a letter dated 11 April 2006 from the President of the Republic informing her that he had reservations about the constitutionality of the following Bill:

   Independent Communications Authority of South Africa Amendment Bill [B 32D of 2005] (National Assembly - sec 75)

   and that, in terms of section 79(1) of the Constitution, he was referring the Bill back to the National Assembly for reconsideration. The President’s letter reads as follows:

       11 April 2006
   
   
       Dear Madam Speaker
   

   REFERRAL OF THE INDEPENDENT COMMUNICATIONS AUTHORITY OF SOUTH AFRICA AMENDMENT BILL (“THE BILL”), NO. 32 OF 2005, TO THE NATIONAL ASSEMBLY

   We have received the above Bill from the Secretary of Parliament for the President’s assent and signature into law.

   For the sake of convenience, The Independent Communications Authority Act, No 13 of 2000, which is sought to be amended by the Bill shall herein be referred to as the Principal Act.

   We are advised that clause 7 of the Bill, which seeks to amend section 5 of the Principal Act, might be in conflict with certain provisions of the Constitution of the Republic of South Africa, 1996. Section 5 of the Principal Act gives the President the power to appoint seven councillors to a Council referred to in that section (“The Council”) on the recommendation of the National Assembly. Clause 7, on the other hand, amends section 5 by giving power to the Minister of Communications (the Minister) to appoint the Council, which shall consist of a chairperson and eight other councillors.

   For purposes of the appointment of the council, clause 7(b) provides for the Minister to appoint an independent and impartial selection panel (‘the panel’), which shall call for nominations for appointment to the Council, and thereafter provide the Minister with a shortlist of suitable candidates for appointment. According to clause 7(1C)(1) of the Act, if the Minister is not satisfied with persons recommended by the panel, the Minister has a power to request the panel to review its recommendations.

   Further, and in terms of clause 7(2) of the Act the Minister has absolute power to recommend to the National Assembly from the list compiled by the panel, persons he or she wants to serve on the Council. No provision is made in this clause for the National Assembly to disapprove the recommendations made by the Minister.

   The role that Parliament played in the process of the appointment of the Council, in terms of section 5 of the Principal Act, has now been reduced by clause 7 to that of merely serving on the selection panel.

   We are advised that the role of Parliament provided for in section 5 of the Principal Act was an important safeguard to the independence of the Council, and, consequently, of the ICASA. Whereas there may well be grounds for the amendment of the Principal Act, we submit that the processes relating to the appointment, removal and performance management of the Council should remain driven by the National Assembly.

   We are of the view that the appointment of councillors by the Minister in the manner prescribed by section 7 of the Act has a serious and real potential that it will impact negatively on the impartiality and independence of the Council, in contrast to the requirements of section 192 of the Constitution.

   Section 192 provides the framework for the establishment of an independent authority to regulate broadcasting in the public interest, and to ensure fairness and a diversity of views broadly representing South African views. The Independent Communications Authority of South Africa is the authority envisaged in section 192, and, in terms of section 3(2) of the Principal Act, acts through the council.

   Section 3(3) of the Principal Act, provides that “[T]he authority is independent, and subject only to the Constitution and the law, and must be impartial and must perform its functions without fear, favour or prejudice”. This provision is extrapolated verbatim from section 181(2) of the Constitution. Section 181(2) of the Constitution applies to chapter 9 institutions.

   We are advised that there is legal significance in the fact that the independent authority envisaged in section 192 is not listed in section 181(1) of the Constitution, which lists state institutions supporting constitutional democracy. Equally so, there is also significance in the fact that the independent authority regulating broadcasting is listed in Chapter 9 of the Constitution.

   You may recall, Madame Speaker, that there is a history to the inclusion of the independent authority regulating broadcasting in chapter 9 of the Constitution, which history should be taken into consideration in defining the level of independence to be accorded the broadcasting authority.

   The concerns raised above apply with equal force to the provisions of clauses 9 and 11, which seek to insert section 6A to the Principal Act and to amend section 8(1) of the Principal Act, respectively.

   In the light of the above, we have reservations about the constitutionality of clauses 7, 9 and 11 of the Bill.

   We have received submissions from parties and/or institutions who requested that the President should not assent to nor sign the Bill, because of the perceived unconstitutionality of clauses 7, 9 and 11 thereof. These submissions are attached herewith for your information and consideration.

   We have also been favoured with the opinions relied on by the Department of Communications on the matter. These opinions are also attached herewith.

   Section 79(1) of the Constitution enjoins the President, in the event of there being reservations about the constitutionality of a Bill referred to him by the National Assembly, to refer it back to the National Assembly for reconsideration.

   In terms of section 79(1) of the Constitution, the Bill is hereby forwarded to the National Assembly for reconsideration of the provisions of clauses 7, 9 and 11 thereof, in light of the matters raised herein.

   Regards

   T M MBEKI PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA

   The Speaker has consequently referred the Bill, and the President’s reservations, in terms of Joint Rule 203(1) to the Portfolio Committee on Communications.

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Safety and Security

(a)     Proclamation No R.4 published in Government Gazette No 28533
    dated 20 February 2006: Notification by President in respect of
    entities identified by the United Nations Security Council in terms
    of the Protection of Constitutional Democracy against Terrorist and
    Related Activities Act, 2004 (Act No 33 of 2004).


(b)     Proclamation No R.6 published in Government Gazette No 28544
    dated 24 February 2006: Notification by President in respect of
    entities identified by the United Nations Security Council in terms
    of the Protection of Constitutional Democracy against Terrorist and
    Related Activities Act, 2004 (Act No 33 of 2004).


(c)     Proclamation No R.9 published in Government Gazette No 28611
    dated 10 March 2006: Notification by President in respect of
    entities identified by the United Nations Security Council in terms
    of the Protection of Constitutional Democracy against Terrorist and
    Related Activities Act, 2004 (Act No 33 of 2004).


(d)     Proclamation No R.13 published in Government Gazette No 28648
    dated 22 March 2006: Notification by President in respect of
    entities identified by the United Nations Security Council in terms
    of the Protection of Constitutional Democracy against Terrorist and
    Related Activities Act, 2004 (Act No 33 of 2004).


(e)     Proclamation No R.14 published in Government Gazette No 28649
    dated 22 March 2006: Notification by President in respect of
    entities identified by the United Nations Security Council in terms
    of the Protection of Constitutional Democracy against Terrorist and
    Related Activities Act, 2004 (Act No 33 of 2004).

1. The Minister of Sport and Recreation

(a)     United Nations Education, Scientific and Cultural Organization
    (UNESCO) Convention Against Doping in Sport, tabled in terms of
    section 231(2) of the Constitution, 1996 (Act No 106 of 1996).


(b)     Explanatory Memorandum to the United Nations Education,
    Scientific and Cultural Organization (UNESCO) Convention Against
    Doping in Sport. 3.    The Minister of Minerals and Energy
(a)     Joint Convention on the Safety of Spent Fuel Management and on
    The Safety of Radioactive Waste Management, tabled in terms of
    section 231(2) of the Constitution, 1996 (Act No 106 of 1996).


(b)     Explanatory Memorandum to the Joint Convention on the Safety of
    Spent Fuel Management and on The Safety of Radioactive Waste
    Management.

COMMITTEE REPORTS

National Assembly

1. Report of the Standing Committee on Private Members’ Legislative Proposals and Special Petitions on the Petition by Mrs C J Kellerman, dated 15 March 2006:

   Details of the prayer/petition were as follows:

   1. Recognition of her husband, Adv A G Kellerman, who worked for the then Justice Department (since January 1980-February 1991, when he left to pursue studies)
   2. Adv Kellerman re-joined the Department (The office of the Attorney-General: September 1991 – September 2000, when he died)
   3. Had it not been for her husband’s broken service for a period of seven months, she and her 10-year-old daughter, would be entitled to a reasonable pension payout.

   The Standing Committee on Private Members’ Legislative Proposals and Special Petitions, having considered the petition of Mrs C J Kellerman, recommends that the prayer contained in the petition be acceded to.

   Report to be considered.

2. Report of the Portfolio Committee on Public Enterprises on ``Eskom: Power cuts in the Western Cape, its National Implications and Challenges in Electricity Capacity”, dated 31 March 2006:

   The Portfolio Committee on Public Enterprises, having had a joint meeting with the Portfolio Committees on Minerals and Energy, and Science and Technology Committees on 14 March 2006, on the above subject, reports as follows:

1.      Context of Meeting

    1.1      The Public Enterprises, Minerals and Energy, and Science
         and Technology Portfolio Committees met with the Ministries and
         Departments of Public Enterprises, and Minerals and Energy, and
         officials from Eskom and the National Nuclear Regulator to deal
         with issues relating to “Eskom: Power cuts in the Western Cape,
         Its National Implications and Challenges in Electricity
         Capacity”.


         The meeting was attended by the Minister of Public Enterprises,
         Minister Alec Erwin; Deputy Minister of Minerals and Energy,
         Deputy Minister Lulu Xingwana; Chairperson of the Eskom Board,
         Mr Valli Moosa; CEO of Eskom, Mr Thulani Gcabashe; CEO of
         National Nuclear Regulator (NNR), Mr Maurice Magumela and Dr
         Tim Hill, a representative of the NNR.


    1.2      The Chairperson of Public Enterprises, Mr Y Carrim, gave
         an overview of the objectives of the meeting. Essentially, he
         said:


           ▪ Parliament is answerable to the people affected by the
             power outages, and in terms of the oversight role of the
             committees over Eskom required a comprehensive explanation
             of the causes and implications of the outages. While
             aspects of an explanation have emerged through the
             interaction of different committees with Eskom, this
             meeting sought to get an overall understanding of the
             issues and also serve as a basis for the committees to work
             together to more effectively monitor developments and
             develop a joint programme of action.


           ▪ The Public Enterprises Portfolio Committee, in
             particular, has been consistently praising Eskom. This is
             most recently reflected in its “Report on the Annual
             Reports of the Department of Public Enterprises and State-
             Owned Enterprises” published in the ATC of 16 November
             2005. In its interaction with Eskom, the Committee did not
             get any sense that these outages would occur. This raised
             the question of how rigorous the Committee was being in its
             oversight function. The Committee did, however, in October
             last year raise the concerns of experts that Eskom’s new
             generation programme comes too late and outages are to be
             expected similar to those experienced in Johannesburg – but
             Eskom was dismissive of these views.


           ▪ While recognising that there may be security
             sensitivities about the investigation relating to the bolt
             in the generator in Koeberg that is understood to be the
             initial cause of the outages, the committees wanted at
             least a general sense of progress regarding the
             investigation and a sense of when the outcome will be made
             public.


           ▪ The committees also want clarity on the following issues:


               o What are Eskom’s plans in the short and medium term to
                 attend to the Western Cape outages?


               o What are the national implications of the Western Cape
                 outages and how will they affect Eskom’s capital
                 expenditure programme?


               o What are the implications of the outages for Eskom’s
                 rural electrification programmes and the free basic
                 electricity programme?


               o What are the implications of the outages for the
                 government’s 6% economic growth target?


               o What are the implications of the outages for
                 electricity charges?


               o What are key aspects of Eskom’s energy-saving
                 programme and what can MPs do to play a role in this
                 regard?


2.      Presentations to the Committees
    2.1      Minister Erwin welcomed the opportunity to address the
         committees on energy issues and correct misunderstandings
         regarding the outages in the Western Cape. He expressed regret
         at the inconvenience suffered by the people of the Western
         Cape. The Minister stressed that there is no national energy
         crisis in the country. He said that there has been a steady
         growth in the demand for electricity, with reserve energy
         margins being narrower than they should be. This was partly due
         to the fact that the country’s economic growth has been higher
         than projected, so demand for energy has grown faster than
         anticipated. This has led to fast-tracking the implementation
         of its capacity expansion programme which includes the
         refurbishment of moth-balled power stations and the building of
         new stations.  Government would like to increase the reserve
         margin to about 15 %. The Minister said that the loss of 900 MW
         in the Western Cape was a major incident, but did not
         constitute a national crisis.

    2.2      Minister Erwin responded to media reports that the power
         outages have harmed investment prospects. He said that a media
         report that a foreign company had abandoned its plans to invest
         in an aluminium smelter, because of its concerns that Eskom
         would not be able to provide the necessary electricity, was
         false. The company had never approached either Eskom or the
         government.  (Since the meeting, Minister Erwin informed the
         Committee Chairpersons that it had been drawn to his attention
         that a businessman had approached the Department of Trade and
         Industry, but it still remained correct that no foreign company
         had turned away from investing in South Africa because of its
         concerns about a lack of adequate electricity.) The situation
         in the Western Cape was manageable and it was ill-advised for
         the business community to create the impression that business
         is being turned away.


    2.3      The Minister said that the outages were due to the fact
         that there was a bolt in the generator, which caused the
         shutting down of the generator. Through government
         intervention, Eskom was able to procure a replacement rotor
         from a French Company (EDF). This was an exceptional incident
         and is being investigated to determine whether it was caused by
         negligence or a deliberate act.  A statement will be made in
         due course in Parliament.

    2.4      Deputy Minister Xingwana repeated that there is no
         national energy crisis and that sufficient capacity exists to
         meet South Africa’s energy needs.  She stressed that there are
         no safety problems in Koeberg and that there is no policy
         vacuum with regard to the nuclear energy sector; that
         negotiations with the independent power producers are on
         schedule for new peaking stations; and that the various
         education programmes about energy efficiency are on track.


    2.5      Mr Valli Moosa said that Eskom plans to spend about R84
         billion on its capital expansion programme during the next five
         years. The programme includes, among other aspects, the
         reviving of the three moth-balled stations and building new
         generation capacity. Eskom has commenced with the construction
         of two new open cycle gas turbine stations in the Western Cape.
          The two stations will be operational early next year in time
         to supply the winter of 2007. The outages in the Western Cape
         will have very little impact on the programme to build new
         capacity. Mr Moosa also reiterated that there is no national
         crisis. Eskom continues to improve its demand-side management
         and all consumers needed to become more energy-efficient. This
         will have the added advantage of making energy supply more
         reliable and environmentally friendly and reducing costs for
         consumers. Mr Moosa said that Eskom has a strong balance sheet
         and that the utility is highly respected in the financial
         markets internationally.  The recent outages have had a minimal
         effect on this.

    2.6      Mr Thulani Gcabashe reported that the five interruptions
        to electricity supply in the Western Cape between 11 November
        2005 and 28 February 2006 occurred at the time when Unit 1 at
        Koeberg was out of service. Given that most of the power
        stations are located in Mpumulanga where there are large coal
        deposits, high-voltage transmission lines are utilised to bring
        power to the Western Cape. Koeberg provides base-load
        generation capacity in the Western Cape.  It also assists in
        ensuring voltage stability along the long transmission network.
        Koeberg’s maximum generation capacity is 1 800 MW.
        Transmission lines from Mpumalanga can carry an additional 3
        500 MW. The resulting maximum Cape load is 5 600 MW during
        winter (5 100 MW during summer).  Together with the Eskom and
        non-Eskom generation available in the Cape, there is generally
        enough capacity to meet the demand. Whenever one unit of
        Koeberg is shut down, Eskom can still meet the demand.  The
        problem occurs when both units at Koeberg are out of service.
        The system then becomes highly constrained with the risk of
        power supply interruptions that lead to load-shedding.




    2.7      The only running unit at Koeberg (Unit 2) was due for
         refuelling in mid-March. In order to avoid the repeat of recent
         interruptions, Eskom has devised a recovery plan to keep Unit 2
         running until mid-May at a reduced output (about 600 MW). By
         this time, a new rotor would have been installed in Unit 1 and
         repairs completed so that it could be returned to service. At
         this time, Eskom will close down for refueling Unit 2. One of
         the consequences of running Unit 2 at a lower capacity was a
         possible electricity supply shortfall of 300-400 MW during peak
         hours.

    2.8      Eskom was aiming to achieve demand-side management
         savings of 400 MW to minimise the impact on customers of the
         shortfall during peak hours. These included the installation of
         efficient lighting and an energy conservation campaign. Eskom
         had also entered a contract with commercial and industrial
         users whereby it would incentivise them for reducing their
         consumption during peak periods. In the medium term, Eskom
         planned to build open cycle gas turbines in Atlantis and Mossel
         Bay that would generate an additional 1 050 MW.

    2.9      Eskom’s R84 billion building programme was planned
         according to a projected gross domestic product (GDP) growth
         rate of 4%. As the current GDP growth rate was 5%, electricity
         demand was increasing faster than projected. Eskom would need
         to accelerate its building projects to meet this higher demand,
         as well as to replace power stations that would be
         decommissioned during the 20-30 year building programme.

3.      Response of the Committees

    3.1      A detailed account of the issues raised by members of the
         committees and responses to them is contained in Annexure A of
         this report. Among the issues raised were the following:

           ▪ The need to provide the public with a clear and simple
             explanation with which they can identify, instead of a too
             technical explanation.
           ▪ MPs engagement in a campaign to conserve energy.
           ▪ The need for the investigation into how the bolt got into
             the generator to be completed expeditiously and reported on
             publicly.
           ▪ The need to improve security at Koeberg.
           ▪ The need to investigate the use of fuel cell technology.
           ▪ The value of nuclear energy.
           ▪ A nuclear waste management policy and evacuation strategy
             in case of danger.
           ▪ The environmental impact of coal-fired stations that are
             to be built.
           ▪ The use of gas-fired power stations, possibly using
             potential gas reserves on the West Coast.
           ▪ Compensation for losses suffered by businesses in the
             Western Cape because of the outages.
           ▪ Greater private sector participation in the electricity
             industry.


    3.2      Overall, the committees were given a fairly comprehensive
         briefing. However, there was not enough time to fully pursue
         all the relevant issues – and some of these will be taken
         further at the next briefing and in exchanges with the relevant
         people before then.

    3.3      The committees agree that there is not a “national
         electricity crisis”, but there are serious specific challenges
         that need to be addressed, and all stakeholders are urged to
         work together to address these challenges.


    3.4      The committees express our regret at the inconvenience and
         hardship suffered by people in the Western Cape and elsewhere
         as a result of the power outages.


    3.5      While the committees accept that there may be certain
         unique and specific reasons for the Western Cape outages, we
         feel that Eskom could have responded more effectively to the
         challenges. We are interested to get a better sense of what
         general lessons Eskom has drawn from the Western Cape
         experiences and how this will contribute to its ability to
         avoid or to anticipate outages, and deal with them more
         effectively where they unavoidably occur.  While recognising
         the difficulties, we feel that Eskom could have dealt better
         with the public and needs to improve its communication through
         the media. While technical information is necessary, some of
         the explanations offered for the outages were far too technical
         and did not respond to the direct concerns of the consumers.


    3.6      The committees feel that the investigation into how the
         bolt came to be in the generator in Koeberg should be concluded
         expeditiously and reported on to the public. We welcome
         Minister Erwin’s commitment to address Parliament on this in
         due course.


    3.7      The committees accept that higher economic growth figures
         and the successful rollout of the electricity programme have
         contributed to the erosion of surplus capacity, but we are
         still not clear why it was not possible to prepare better for
         this.


    3.8      The committees feel that Eskom’s immediate, short and long
         term plans to address the Western Cape challenges seem
         reasonably sound. The real test will be in the implementation
         of the plans – and the committees will monitor this. A key
         aspect of the plan should also be to win the confidence of the
         public, which will obviously be very challenging – but it has
         to be attempted.


    3.9      Clearly, security and risk management systems at Koeberg
         need to be strengthened – and the committees will pursue this
         further with the relevant Departments and Eskom.


    3.10     While the committees accept that Eskom’s capital
         investment programme will contribute to economic growth of 6%
         and more, we feel that there probably has been a limited degree
         of loss of confidence in Eskom.  Of course, this should not be
         exaggerated, but it should not be dismissed completely either.
         In any case, the committees feel Eskom should accurately assess
         the mood and attitudes of businesses in this regard and respond
         appropriately.

    3.11     The committees note the outages in Johannesburg and, while
         recognising that it is mainly the municipality’s concern to
         address these, feel that Eskom should play an active role to
         assist, as it committed itself to doing at a meeting with the
         Public Enterprises Portfolio Committee on 19 October 2005.

    3.12     The committees especially welcome Eskom’s commitment, in
         co-operation with other stakeholders, to engage in a major
         energy-saving campaign. MPs can also play an active part in
         this – and we commit ourselves to doing so, as well as
         mobilising other MPs to do so.  The committees request Eskom to
         produce a user-friendly pamphlet on energy-saving that MPs
         could distribute through our constituency offices during the 3
         to 28 April constituency period.

    3.13     The committees also request Eskom to produce a leaflet for
         MPs that explains clearly and simply the reasons for the
         Western Cape outages and the immediate, short and long term
         plans to address the challenges. The leaflet should also,
         briefly, deal with Eskom’s national capital expenditure
         programme.

    3.14     As committees we commit ourselves to working more often
         and more effectively together. We will also seek to draw in the
         Environmental and Tourism Portfolio Committee, and, where
         appropriate, the Provincial and Local Government Portfolio
         Committee. We will seek to meet with Eskom once a quarter as
         joint committees to monitor progress and carry out our other
         oversight responsibilities, and, over time, pursue the
         possibility of a joint strategy and programme for the
         committees.  The Committees will seek to be more effective and
         rigorous in our oversight role.


    3.15     The Committees need to explore the possibility of
         securing the services of an energy specialist  to assist them
         to be more effective in their oversight role.

    ANNEXURE A

    1. Mr A Mlangeni (ANC) felt that Eskom’s presentation was technical
         and complex, and he requested a ‘simple’ explanation for the
         power failures in the Western Cape that could be conveyed to
         members of his constituency. Minister Erwin said that, ‘in
         simple terms’, a very serious accident caused the closure of
         Unit 1 at Koeberg, resulting in the loss of 900 MW of power and
         the subsequent power shortages in the Western Cape.

    2. Mr S Dithebe (ANC) suggested that Eskom should investigate the
         use of fuel cell technology and research the harvesting of
         energy from landfills in order to augment its generation
         capacity. He asked how Eskom planned to distribute compact
         fluorescent lamps (CFLs) as part of its plan to introduce
         energy-efficient lighting. Mr Gcabashe replied that of the 5
         million CFLs that would be distributed, 1,875 million would be
         distributed free of charge, door-to-door, while the balance
         would be made available at cost through government agencies.


    3. Adv H Schmidt (DA) noted that Cabinet had adopted a White Paper
         in 1998 that indicated that the Department of Minerals and
         Energy should invite foreign companies to invest in energy
         projects in SA. Why had the Department failed to adhere to this
         policy? Deputy Minister Xingwana answered that the collapse of
         energy markets around the world during 2001 caused government
         to review its policy on the privatisation of energy supplies.
         Government decided to strengthen Eskom so that it would provide
         70% of SA’s energy needs, while private companies would provide
         30%.


    4. Adv Schmidt commented that the suggestion by the Minister for
         Minerals and Energy, Ms L Hendricks, that possible sabotage at
         Koeberg was politically motivated was ‘unfortunate on the eve
         of an election’.


    5. Mr C Morkel (PIM) enquired whether the French government had
         attached any conditions to the spare rotor that it was offering
         as a replacement for the damaged rotor at Koeberg Unit 1. Mr
         Erwin responded that the French and SA governments had agreed
         that once the damaged rotor from Koeberg Unit 1 was repaired,
         it would be sent to France in exchange for the spare rotor that
         France had offered. The SA government had also agreed to
         underwrite the risk that France would need to buy electricity
         from another country if their rotor malfunctioned during the
         period in which they were without a spare.

    6. Mr Morkel observed that environmental impact assessments on
         Eskom’s building projects to improve electricity generation
         capacity would lengthen the time frames for these projects. He
         suggested that the relevant laws could be amended to reduce
         delays to building projects caused by environmental impact
         assessments.


    7. Mr J Stephens (DA) said that Eskom had demonstrated inadequacy
         in the area of technical risk management. Although specific
         problems affecting electricity supply, such as fires, were
         unforeseeable, generic problems were foreseeable and should be
         addressed by contingency measures. What was the status of
         technical risk management at Eskom?  Minister Erwin replied
         that, in order to deal with such a configuration of events that
         led to power failures in the Western Cape, Eskom would need to
         build a much larger generation capacity. Government would need
         to consider this matter in future, taking into account
         implications of cost and excess capacity. Mr Gcabashe added
         that Eskom had a separate risk management department that
         determined the top ten risks in the organisation and reviewed
         these each quarter.


    8. Mr Stephens expressed concern over the environmental impact of
         coal-fired power stations that Eskom was planning to build. As
         an alternative, Eskom should consider building power stations
         in agricultural areas where bio-diesel could be used as a fuel.
          Deputy Minister Xingwana responded that the Department of
         Minerals and Energy was also concerned by the ecological
         effects of the use of coal as an energy source, and it was in
         the process of developing a policy on bio-fuels. The economy
         was growing so rapidly that a variety of energy forms, such as
         coal, nuclear energy, and renewable energy should be used. Mr
         Gcabashe added that coal was the most abundant resource that
         could be used to meet the increasing energy consumption in SA.
         Eskom was aware of the environmental impact of coal-fired power
         stations, and was investigating methods of reducing carbon-
         dioxide emissions from these stations.


    9. Mr E Lucas (IFP) asked whether the problems with electricity
         supply in the Western Cape would affect the government’s
         programme for providing electricity in all areas of the
         country. Mr Gcabashe stressed that Eskom would definitely meet
         its national targets for extending the electricity supply
         infrastructure in the next two years.


    10.      Mr Lucas queried whether gas-fired power stations could be
         established using the gas reserves on the West Coast. Mr
         Gcabashe replied that Eskom was monitoring the progress of
         companies that were prospecting for gas on the West Coast.


    11.      Ms N Kondlo (ANC) noted that although Eskom was
         investigating possible sabotage at Koeberg Unit 1, it had not
         given an assurance that such an incident would not recur. Some
         of the reasons for the power shortages in the Western Cape were
         unforeseeable, while others, such as increased demand cause by
         economic growth, should have been foreseen. Eskom’s
         presentation showed that there was a high risk that power
         failures would recur in the Western Cape during the period in
         which Koeberg Unit 1 was closed down.


    12.      The Co-Chairperson, Mr Carrim (ANC), commented that
         Eskom’s assertion that the power outages in the Western Cape
         had not undermined economic growth, as infrastructure
         investment to increase generation capacity would improve
         economic growth, was ‘credible’. However, this response did not
         translate into a practical answer that members could repeat in
         their constituencies. Eskom should explain clearly whether
         power failures would recur in the Western Cape. Mr V Moosa
         responded that Eskom, together with members, should develop an
         ‘appropriate message for the public’ explaining the reasons for
         the power failures. Although Eskom could not guarantee that
         power failures would not recur, it was making every effort to
         avert a future electricity supply crisis. The possibility of
         foreseeing power failures in the Western Cape depended on the
         broader economic situation that was projected. Behind the
         question of whether Eskom should have foreseen the possibility
         of power shortages was the question of Eskom’s credibility.
         This should be evaluated according to Eskom’s record.


    13.      Mr C Gololo (ANC) asked whether the Western Cape would
         experience power outages in 2007 and 2008. Mr Moosa stated such
         power outages would not occur. Mr Gololo enquired further
         whether the power shortages in the Western Cape would affect
         the government’s programme for supplying electricity to rural
         areas. Deputy Minister Xingwana asserted that the Department of
         Minerals and Energy was committed to its programme for
         electrifying rural areas.


    14.      Mr C Kekana (ANC) asked whether Eskom considered nuclear
         energy a long-term alternative to fossil fuels. Mr Moosa
         replied that Eskom did not consider nuclear energy as the
         alternative to coal, but rather as one of the options for
         future energy projects.


    15.      Mr L Greyling (ID) stated that whatever the outcome of the
         investigation into the incident at Koeberg Unit 1, a breach had
         taken place, whether this was a security breach or a mechanical
         breach. Minister Erwin conceded that a breach had taken place
         and reiterated that Eskom would provide members with details of
         the investigation on its completion.


    16.      Mr Greyling claimed that, while energy-intensive investors
         may not be retreating from SA as a result of power failures in
         the Western Cape, the investment climate in Cape Town had been
         adversely affected. Did the government plan to compensate
         businesses in the Western Cape that faced liquidation as a
         result of power failures? Minister Erwin expressed regret over
         the losses incurred by businesses in the Western Cape during
         the power failures. However, power outages were a business
         risk. Government could not be held responsible for business
         risks as this was a matter of insurance. The appropriate forum
         for businesses to discuss this was the risk committee
         established by the Premier for the Western Cape.


    17.      Mr Greyling was concerned that the bulk of Eskom’s
         research and development budget was allocated to research into
         nuclear energy rather than renewable energy forms. Deputy
         Minister Xingwana replied that renewable energy forms were not
         affordable, and SA was following the example of many other
         countries, such as the United Kingdom and Germany, by
         researching nuclear energy. Minister Erwin added that ‘every
         major economy’ was engaged in the debate on renewable energy
         forms. Systems such as the wind generation system in Europe
         were heavily subsidised and therefore not economically viable
         for developing economies.


    18.      Professor I Mohamed (ANC) queried whether the Department
         of Minerals and Energy had formulated a nuclear waste
         management policy, and whether it possessed an evacuation
         strategy in the case of a nuclear event at Koeberg. Deputy
         Minister Xingwana responded that the Department had drawn up a
         ‘radioactive’ policy which included a strategy for nuclear
         waste management. The Department would continue to research
         nuclear waste management, and would plan for excess nuclear
         waste over a 20-year period.


    19.      Professor Mohamed recalled that in 2002-03, Eskom
         requested an electricity price increase of 7%-8% for the
         purpose of building more power stations, but was denied by
         government. Deputy Minister Xingwana confirmed that the
         decision taken by government was correct as there was no need
         for a price increase at that time.


                        THURSDAY, 4 MAY 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Introduction of Bills

 (1)    The Minister for Agriculture and Land Affairs


      a) Deeds Registries Amendment Bill [B 5 – 2006] (National
         Assembly – sec 75) [Explanatory summary of Bill and prior
         notice of its introduction published in Government Gazette No
         28751 of 20 April 2006.]


     Introduction and referral to the Portfolio Committee on
     Agriculture and Land Affairs of the National Assembly, as well as
     referral to the Joint Tagging Mechanism (JTM) for classification
     in terms of Joint Rule 160, on 4 May 2006.


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

1. Calling of Joint Sitting

   The Speaker and the Chairperson, on 4 May 2006, called a Joint Sitting of the National Assembly and the National Council of Provinces, as follows:

            CALLING OF JOINT SITTING OF PARLIAMENT
   

   The Speaker of the National Assembly, Ms B Mbete, and the Chairperson of the National Council of Provinces, Mr M J Mahlangu, have, in terms of Joint Rule 7(2), called a Joint Sitting of the Houses of Parliament for Monday, 8 May 2006 at 14:15 in celebration of the Tenth Anniversary of the Constitution.

B MBETE, MP                              M J MAHLANGU, MP
SPEAKER OF THE                           CHAIRPERSON OF THE
NATIONAL ASSEMBLY  NATIONAL COUNCIL OF PROVINCES





                         MONDAY, 8 MAY 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Introduction of Bills

 (1)    The Minister of Trade and Industry


       a) Corporate Laws Amendment Bill [B 6 – 2006] (National Assembly
          – sec 75) [Explanatory summary of Bill and prior notice of
          its introduction published in Government Gazette No 28765 of
          21 April 2006.]


          Introduction and referral to the Portfolio Committee on Trade
          and Industry of the National Assembly, as well as referral to
          the Joint Tagging Mechanism (JTM) for classification in terms
          of Joint Rule 160, on 9 May 2006.


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

National Assembly

The Speaker

1. Membership of Committees

   1) The following changes have been made to the membership of Portfolio Committees:

   Public Service and Administration Appointed: Julies, Mr I F

COMMITTEE REPORTS

National Assembly

1. Annual Report of the Portfolio Committee on Labour for 2005, dated 31 January 2006:

 1.     COMMITTEE:             Portfolio Committee on Labour


   Chairperson:          Ms OR Kasienyane


   Committee Secretary:  Ms P Jayiya



2.      Chairperson’s Overview



    The Committee had during the period under review worked hard to
    achieve its objectives of exercising oversight over the Department
    of Labour and public entities falling under it.  Much was done in
    monitoring effective implementation of legislation and service
    delivery.   Greater focus was aimed at monitoring the activities
    and progress made by the Sector Education and Training Authorities
    (SETAs), compliance with occupational health and safety
    legislation, as well as matters related to employment equity.
    Monitoring the Growth and Development Summit (GDS) agreements will
    remain a focus of  the Committee.  Nonetheless, the Committee could
    not do as much as it wished in certain areas due to financial
    constraints.  Opportunities should be made available for Committee
    members to strengthen their capacity on the oversight role through
    the sharing of experiences and expertise with their counterparts in
    other parts of the continent and the world.  With adequate
    resources and time, the Committee will manage to fulfil its mandate
    efficiently and effectively.

    I wish to extend my thanks to the Committee for its support during
    the year, and hope for the best during the coming year.


3.      List of entities overseen by Committee:

       • Commission for Conciliation, Mediation and Arbitration (CCMA)
       • National Economic Development and Labour Council (NEDLAC)
       • Unemployment Insurance Fund (UIF)
       • Sector Education and Training Authorities (SETAs)
       • Umsobomvu Youth Fund (UYF)
       • National Productivity Institute (NPI)
       • Compensation Fund

4.      Legislation referred: None

5.      Papers (International Agreements, Protocols, Reports) referred

1. Oversight / Local visits

   Visit to Sasol Natref Plant

   Objectives:

   To conduct a fact-finding mission on the blast that occurred in the Sasolburg plant, as well as check compliance with the Occupational Health and Safety Act.

   Dates: 3-4 Feb 2005

   Delegation: Ms OR Kasienyane (ANC) Mr OM Mogale (ANC) Ms LN Moss (ANC) Mr AS Mshudulu (ANC) Mr MJG Mzondeki (ANC) Mr SM Rasmeni (ANC) Mr RK Henderson (DA) Mr CM Lowe (DA) Prince NE Zulu (IFP) Ms P Jayiya (Committee Secretary)

   Province visited: Gauteng

   Date of adoption of the report: 9 Sep 2005

   Date of publication in the ATC: 15 Sep 2005

   Debate in the House: Report not debated

   National Conference in Skills Development

   Objective:

   The committee was invited by the Department of Labour to attend the launch of the National Skills Development Strategy 2005-2009

   Dates: 3-4 Mar 2005

   Delegation: Ms OR Kasienyane (ANC) Mr TG Anthony (ANC) Ms TE Lishivha (ANC Mr LD Maduma (ANC) Mr OM Mogale (ANC) Ms LN Moss (ANC) Mr MJG Mzondeki (ANC) Ms ND Ngcengwane (ANC) Mr GG Oliphant (ANC) Mr SM Rasmeni (ANC) Mr RK Henderson (DA) Mr M Lowe (DA) Prince NE Zulu (IFP) Mr T Godi (PAC) Ms S Rajbally (MF)

   Province visited: Gauteng

 Date of adoption of report:   No report


 Visit to the Chamber of Mines


  Objectives:


  *     To get an insight into the role and functions of the Chamber of
       Mines
  *      To  address  issues  and  challenges  in  the  mining  industry
       concerning labour matters

  Dates:           20-21 June 2005


  Delegation: Ms OR Kasienyane (ANC)
             Mr T Anthony (ANC)
             Mr L Maduma (ANC)
             Ms LN Moss (ANC)
             Mr MJG Mzondeki (ANC)
             Ms ND Ngcengwane (ANC)
             Mr SM Rasmeni (ANC)
             Mr RK Henderson (DA)
             Mr CM Lowe (DA)
             Prince NE Zulu (IFP)
             Mr N Godi (PAC)
             Mr WD Spies (FFP)


  Staff:           Ms P Jayiya (Committee Secretary)
             Ms CB Paulse (Committee Assistant)

  Province:  Gauteng & Mpumalanga
  Report still to be adopted by the Portfolio Committees on  Health  and
             on Labour

1. International Visits

   International Labour Conference

   Objectives of the trip: To provide an opportunity for members to participate in a global forum where social and labour questions of importance to the entire world, including South Africa, are discussed.

   Dates: 6-16 June 2005

   Delegation: Ms OR Kasienyane (ANC) Mr LD Maduma (ANC) Mr CM Lowe (DA)

   Staff: Ms P Jayiya (Committee Secretary)

   Country visited: Switzerland

   Date of adoption of report: 8 Nov 2005 Date of publication: 14 Nov 2005 Tabling in the House: 14 Nov 2005

2. Budget Vote

   Referral date: 2 Mar 2005 Briefing by department: 15 Mar 2005 Date of publication of report: 31 Mar 2005

3. Annual Report for the Executive

   Referral date: 9 Sep 2005 Briefing by DOL: 12 Oct 2005

   Hearing conducted with entities:

   14-10-2005 - Health & Welfare SETA, Bank SETA and Diplomacy, Intelligence, Defence and Trade Education & Training Authority (DIDTETA) on their 2004-05 annual reports

   17-10-2005 - Energy SETA, Local Government & Water SETA and the Chemical SETA on their 2004-05 annual reports

   18-10-2005 - Mining Qualification Authority (MQA), Media, Advertising, Printing, Packaging and Publishing SETA and the Construction SETA on their 2004-05 annual reports

   19-10-2005 - Insurance SETA, Transport SETA, Tourism & Hospitality SETA and Primary and Secondary Agriculture SETAs on their 2004-05 annual reports

   20-10-2005 - Finance and Accounting Services SETA, Education, Training and Development SETA and Wholesale & Retail SETA on their 2004-05 annual reports

   21-10-2005 - Commission for Conciliation, Mediation & Arbitration (CCMA) on its 2004-05 annual report

   25-10-2005 - Umsobomvu Youth Fund on its 2004-05 annual report

   28-10-2005 - NEDLAC on its 2004-05 annual report

   01-11-2005 - Unemployment Insurance Fund (UIF) and Compensation Fund on their 2004-05 annual reports

   04-11-2005 - National Productivity Institute (NPI) on its 2004-05 annual report

   Date of publication of report: 15 Nov 2005

4. Other committee activities

     08-02-2005 -     Adoption of the report on the visits to the
             Northern Cape and North West Provinces, and adoption of
             minutes and committee programme 15-02-2005 -     Meeting with labour representatives from Sasol on
             safety matters
   
     22-02-2005 -     Meeting with management of Sasol
   
     01-03-2005 -     Briefing by DOL on integrated workplan for
             2005-06
   

   15-03-2005 - Briefing by DOL on programmes and budget vote

   18-03-2005 - Briefing by National Productivity Institute, Compensation Fund and Umsobomvu Youth Fund

   31-03-2005 - Adoption of report on budget vote

   12-04-2005 - Briefing by NEDLAC on its work programme for 2005

     17-05-2005 -     Briefing by DOL on ILO activities
   

   31-05-2005 - Briefing by DOL on 2004-05 annual report of Commission on Employment Equity

   01-06-2005 - Briefing by the Black Management Forum (BMF), Commission on Gender Equality (CGE), Disabled People of SA (DPSA) on progress regarding the implementation of employment equity

   03-06-2005 - Meeting with Vice-President of Columbia 07-06-2005 - Briefing by CCMA on its annual report

   14-06-2005 - Briefing by DITSELA on its activities

   02-08-2005 - Briefing by Business Unity of South Africa

   12-08-2005 - Briefing by the National Skills Authority (NSA) and National Skills Fund (NSF)

   16-08-2005 - Consideration of the Committee reports on the 93rd International Labour Conference and the Annual Report of the Commission on Employment Equity

   23-08-2005 - Briefing by the Public Service SETA, Financial Services SETA and Services SETA on their programmes

   30-08-2005 - Briefing by the Chemical SETA, Food & Beverage SETA and Metal and Engineering SETA on their activities

   06-09-2005 - Briefing by National Skills Fund and National Skills Authority on funding of training institutions

   09-09-2005 - Adoption of the reports on the visit to Natref in Sasolburg and employment equity briefings

   13-09-2005 - Workshop in preparation for consideration of Annual Reports of Departments and public entities

   11-10-2005 - Preparatory meeting for extended briefings on the evaluation of annual reports

   15-11-2005 - Adoption of the report on processes of consideration of annual reports, Committee’s annual report and the programme for the first term in 2006

5. Committee budget

   Budget allocated to Committee: R 497, 886,00 Expenditure:

   Catering R 30,017.80 Provincial Visits R 123,550.10 Overseas Trips R 112,792.80 Transfers to staff travel R 28,850.00 Training R Nil

   Total Expenditure: R 295,210.70

   Balance available: R 202,675.30

6. Outstanding matters: Adoption of the report of the Portfolio Committee on Labour on the visit to the Chamber of Mines

                     Adoption of instruments referred for
                     consideration and report
   

7. Master attendance register

1. SUPPORT STAFF

   a. Control Committee Secretary: Marc Philander (1999 to date)

   b. Committee Secretary: Pat Jayiya (July 2002 to date)

   c. Committee Assistant: Beverly Walters (1999-July 2005)

   d. Secretary to Chairperson: Tania Kleinhans (1999 to date)

   e. Researcher (Research Unit): No dedicated researcher

   f. Legal Support: No dedicated legal support

2. FORMAL ADOPTION OF ANNUAL REPORT BY COMMITTEE

  Annual Report for 2005 of the PC on Labour, having  been  put  to  the
  Committee, adopted on 31 January 2006


        ………………………………..

        COMMITTEE SECRETARY



        ………………………………………………

        CONTROL COMMITTEE SECRETARY






        ……………………………………

        COMMITTEE CHAIRPERSON









        …………………………
    SECTION MANAGER

1. Report of the Standing Committee on Private Members’ Legislative Proposals and Special Petitions on the petition by Mrs CJ Kellerman, dated 15 March 2006:

Details of the prayer/petition were as follows:

 1. Mrs Kellerman’s husband, Adv A G Kellerman,  worked  for  the  then
    Justice Department (since January 1980-February 1991, when he  left
    to pursue studies).
 2. Adv Kellerman re-joined the Department (The office of the Attorney-
    General: September 1991-September 2000, when he passed away).
 3. Had it not been for her husband’s break in service for a period  of
    seven months, Mrs Kellerman and her 10-year-old daughter  would  be
    entitled to a reasonable pension payout.
 4. Mrs Kellerman prays that her husband’s break in service be condoned
    and his pension be reassessed on the basis of 20 years service.

The Standing Committee on Private Members`  Legislative  Proposals  and
Special Petitions, having considered the petition of Mrs C J Kellerman,
recommends that the prayer contained in the petition is acceded to.

Report to be considered.

                         TUESDAY, 9 MAY 2006

ANNOUNCEMENTS

National Assembly

The Speaker

1. Referral to Committees of papers tabled

(1)     The following papers are referred to the Portfolio Committee on
    Safety and Security for consideration and report:

a) Proclamation No R.4 published in Government Gazette No 28533 dated 20 February 2006: Notification by President in respect of entities identified by the United Nations Security Council in terms of the Protection of Constitutional Democracy against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).

    (b)      Proclamation No R.6 published in Government Gazette No
          28544 dated 24 February 2006: Notification by President in
          respect of entities identified by the United Nations Security
          Council in terms of the Protection of Constitutional
          Democracy against Terrorist and Related Activities Act, 2004
          (Act No 33 of 2004).


    (c)      Proclamation No R.9 published in Government Gazette No
          28611 dated 10 March 2006: Notification by President in
          respect of entities identified by the United Nations Security
          Council in terms of the Protection of Constitutional
          Democracy against Terrorist and Related Activities Act, 2004
          (Act No 33 of 2004).


    (d)      Proclamation No R.13 published in Government Gazette No
          28648 dated 22 March 2006: Notification by President in
          respect of entities identified by the United Nations Security
          Council in terms of the Protection of Constitutional
          Democracy against Terrorist and Related Activities Act, 2004
          (Act No 33 of 2004).


    (e)      Proclamation No R.14 published in Government Gazette No
          28649 dated 22 March 2006: Notification by President in
          respect of entities identified by the United Nations Security
          Council in terms of the Protection of Constitutional
          Democracy against Terrorist and Related Activities Act, 2004
          (Act No 33 of 2004).


(2)     The following papers are referred to the Portfolio Committee on
    Sport and Recreation for consideration and report:

       a) United Nations Education, Scientific and Cultural
          Organisation (UNESCO) Convention Against Doping in Sport,
          tabled in terms of section 231(2) of the Constitution, 1996.


    (b)      Explanatory Memorandum to the United Nations Education,
          Scientific and Cultural Organisation (UNESCO) Convention
          Against Doping in Sport.



(3)     The following papers are referred to the Portfolio Committee on
    Minerals and Energy for consideration and report:


    (a)      Joint Convention on the Safety of Spent Fuel Management
          and on The Safety of Radioactive Waste Management, tabled in
          terms of section 231(2) of the Constitution, 1996.


    (b)      Explanatory Memorandum to the Joint Convention on the
          Safety of Spent Fuel Management and on The Safety of
          Radioactive Waste Management.

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Foreign Affairs

 a) Strategic Plan of the Department of Foreign Affairs for 2006 to
    2009.

1. The Minister of Transport

 a) Convention on International Interests in Mobile Equipment, tabled
    in terms of section 231(2) of the Constitution, 1996.


 b) Protocol to the Convention on International Interests in Mobile
    Equipment on Matters Specific to Aircraft Equipment, tabled in
    terms of section 231(2) of the Constitution, 1996.


 c) Explanatory Memorandum to the Convention on International Interests
    in Mobile Equipment and the Protocol to the Convention on
    International Interests in Mobile Equipment on Matters Specific to
    Aircraft Equipment. 3.    The Minister of Safety and Security


 (a)    Report of the Independent Complaints Directorate (ICD) for
    January 2003 to December 2003, in terms of section 18(5)(c) of the
    Domestic Violence Act, 1998 (Act No 116 of 1998).

1. The Minister for Justice and Constitutional Development

   a) Draft Practical Guidelines for Employees in terms of section 10 of the Protected Disclosures Act, 2000.

 (b)    Report of the Auditor-General on the Financial Statements of the
     Presidents’ Fund for 2003-2004 [RP 229-2005].


 (c)    Report and Financial Statements of the Judicial Service
     Commission for 2005.


 (d)    Proclamation No R.3 published in Government Gazette No 28528
     dated 17 February 2006: Commission of inquiry to conduct an
     investigation into alleged illicit activities of certain South
     African Companies or Individuals relating to the United Nations
     Oil-For-Food Programme in Iraq, in terms of the Commissions Act,
     1947 (Act No 8 of 1947).


 (e)    Government Notice No R.159 published in Government Gazette No
     28528 dated 17 February 2006: Terms of Reference of the President
     of the Republic of South Africa for the establishment of a
     Commission of inquiry to conduct an investigation into alleged
     illicit activities of certain South African Companies or
     individuals relating to the Oil-For-Food Programme in Iraq, in
     terms of the Constitution of the Republic of South Africa, 1996.

1. The Minister of Education

 (a)    Strategic Plan of the Department of Education for 2006 to 2010.

1. The Minister of Sport and Recreation

 (a)    Strategic Plan of Sport and Recreation South Africa for 2006 to
     2010.

1. The Minister of Minerals and Energy

   a) Strategic Plan of the Department of Minerals and Energy for 2006/07 to 2010/11.

National Assembly

1. The Speaker

Letter from the Minister of Water Affairs and Forestry dated 7 April
2006 to the Speaker of the National Assembly, in terms of section
65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999),
explaining the delay in the tabling of the Annual Report of Bloem Water
for 2004-2005:


In terms of section 65(1) of the Public Finance Management Act, 1999
(Act 1 of 1999), Annual Reports and Financial Statements of public
entities (which include Water Boards) must be tabled within six months
of the end of the financial year. In terms of section 65(2)(a) of the
mentioned Act, the Minister must, upon failure to table the Annual
Report and Financial Statements within six months of the end of the
financial year, table a written explanation in Parliament to give
reasons why the Report was not tabled.


The Bloem Water Board did not submit its Annual Report and Financial
Statements for the above-mentioned period within the prescribed time
and the reason for the late submission is that the external auditors of
Bloem Water awaited the results of the actuarial valuation of the
pension fund before an opinion could be expressed on the financial
statements.


The Annual Report of Bloem Water will now be tabled in Parliament.


With kind regards


(MS) B P SONJICA, MP
MINISTER OF WATER AFFAIRS AND FORESTRY



                         FRIDAY, 12 MAY 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Introduction of Bills

 (1)    The Minister of Sport and Recreation


        a) South African Institute for Drug-Free Sport Amendment Bill
           [B 7 – 2006] (National Assembly – sec 75) [Explanatory
           summary of Bill and prior notice of its introduction
           published in Government Gazette No 27787 of 22 July 2005.]


     Introduction and referral to the Portfolio Committee on Sport and
     Recreation of the National Assembly, as well as referral to the
     Joint Tagging Mechanism (JTM) for classification in terms of Joint
     Rule 160, on 15 May 2006.


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

1. Draft bills submitted in terms of Joint Rule 159

(1)     South African Institute for Drug-Free Sport Amendment Bill,
     2006, submitted by the Minister of Sport and Recreation on 5 May
     2005. Referred to the Portfolio Committee on Sport and Recreation
     and the Select Committee on Education and Recreation.

National Assembly

The Speaker

1. Referrals to Committees of papers tabled

(1)     The following papers are referred to the Portfolio Committee on
    Minerals and Energy for consideration and report, the committee to
    confer with the Portfolio Committee on Health in terms of Rule
    307(2)(b):

    (a)      Joint Convention on the Safety of Spent Fuel Management
         and on The Safety of Radioactive Waste Management, tabled in
         terms of section 231(2) of the Constitution, 1996 (Act No 106
         of 1996).


    (b)      Explanatory Memorandum to the Joint Convention on the
         Safety of Spent Fuel Management and on The Safety of
         Radioactive Waste Management.

  Please note: This referral replaces the referral published in
    Announcements, Tablings and Committee Reports (ATC) dated 9 May
    2006, p 605.

TABLINGS

National Assembly and National Council of Provinces

1. The Speaker and the Chairperson

(a)     Submission of the Financial and Fiscal Commission on the
    Division of Revenue Bill for 2007-2008, tabled in terms of section
    9(1) of the Intergovernmental Fiscal Relations Act, 1997 (Act No 97
    of 1997).

1. The Minister of Finance

(a)     Report of the Registrar of Long-term Insurance for 2004.


(b)     Report of the Registrar of Short-term Insurance for 2004.


(c)     Report and Financial Statements of the Financial Services Board
    on the Registrar of Friendly Societies for 2004.


(d)     Government Notice No 317 published in Government Gazette No
    28699 dated 31 March 2006: Adjusted allocations in terms of the
    Division of Revenue Act, 2005 (Act No 1 of 2005).


(e)     Proclamation No R.16 published in Government Gazette No 28675
    dated 29 March 2006: Fixing of date on which certain sections
    respectively must come into operation, in terms of the Revenue Laws
    Amendment Act, 2005 (Act No 31 of 2005) and Revenue Laws Second
    Amendment Act, 2005 (Act No 32 of 2005).


(f)     Proclamation No R.17 published in Government Gazette No 28675
    dated 29 March 2006: Fixing of date on which section 103(1) shall
    come into operation, in terms of the Revenue Laws Amendment Act,
    2002 (Act No 74 of 2002).


(g)     Government Notice No 316 published in Government Gazette No
    28698 dated 31 March 2006: Commencement of the provisions in terms
    of the Auditing Profession Act, 2005 (Act No 26 of 2005).


(h)     Government Notice No R.238 published in Government Gazette No
    28627 dated 17 March 2006: Determination of fees payable to the
    Registrar of Securities Services in terms of the Securities
    Services Act, 2004 (Act No 36 of 2004).


(i)     Government Notice No R.239 published in Government Gazette No
    28627 dated 17 March 2006: Determination of fees payable to the
    Registrar of Friendly Societies in terms of the Friendly Societies
    Act, 1956 (Act No 25 of 1956).


(j)     Government Notice No R.240 published in Government Gazette No
    28627 dated 17 March 2006: Determination of fees payable to the
    Registrar of Financial Services Providers in terms of the Financial
    Advisory and Intermediary Services Act, 2002 (Act No 37 of 2002).




(k)     Agreement between the Government of the Federal Republic of
    Germany and the Government of the Republic of South Africa
    concerning Financial Co-operation in 2004, tabled in terms of
    section 231(3) of the Constitution, 1996.


(l)     Explanatory Memorandum on the Agreement between the Government
    of the Federal Republic of Germany and the Government of the
    Republic of South Africa concerning Financial Co-operation in 2004.


(m)     Financing Agreement between the European Community and the
    Republic of South Africa concerning Support to the Risk Capital
    Facility (SA/007/04), tabled in terms of section 231(3) of the
    Constitution, 1996.


(n)     Explanatory Memorandum on the Agreement between the European
    Community and the Republic of South Africa concerning Support to
    the Risk Capital Facility (SA/007/04).


(o)     Project Agreement between the Government of South Africa and
    the Government of Ireland on a Project for Supporting the
    Prevention, Care and Support of HIV and AIDS and the reduction of
    its impact in the Limpopo Province, through the Provincial
    Department of Health, tabled in terms of section 231(3) of the
    Constitution, 1996.


(p)     Explanatory Memorandum on the Project Agreement between the
    Government of South Africa and the Government of Ireland on a
    Project for Supporting the Prevention, Care and Support of HIV and
    AIDS and the reduction of its impact in the Limpopo Province.


(q)     Financing Agreement between the European Community and the
    Republic of South Africa concerning EPRD Audit/Evaluation Facility
    (SA/006/05), tabled in terms of section 231(3) of the Constitution,
    1996.


(r)     Explanatory Memorandum on the Financing Agreement between the
    European Community and the Republic of South Africa concerning EPRD
    Audit/Evaluation Facility (SA/006/05).


(s)     Strategic Objective Grant Agreement No. 674-0332 between the
    United States of America and the Republic of South Africa for
    Increased Sustainable Local Government Service Delivery, tabled in
    terms of section 231(3) of the Constitution, 1996.


(t)     Explanatory Memorandum on the Strategic Objective Grant
    Agreement No. 674-0332 between the United States of America and the
    Republic of South Africa for Increased Sustainable Local Government
    Service Delivery.


(u)     Strategic Objective Grant Agreement No. 674-0328 between the
    United States of America and the Republic of South Africa for
    Increased Access to Quality Education and Training, tabled in terms
    of section 231(3) of the Constitution, 1996.


(v)     Explanatory Memorandum on the Strategic Objective Grant
    Agreement No. 674-0328 between the United States of America and the
    Republic of South Africa for Increased Access to Quality Education
    and Training.


(w)     Amendment number five to the Grant Agreement between the
    Government of the United States of America acting through the
    United States Agency for International Development and the
    Government of the Republic of South Africa for the Increased
    Commercial Viability of Existing Small and Medium Agribusiness,
    tabled in terms of section 231(3) of the Constitution, 1996.


(x)     Explanatory Memorandum on the Amendment number five to the
    Grant Agreement between the Government of the United States of
    America acting through the United States Agency for International
    Development and the Government of the Republic of South Africa for
    the Increased Commercial Viability of Existing Small and Medium
    Agribusiness.


(y)     Strategic Objective Grant Agreement No 674-0330 between the
    United States of America and the Republic of South Africa for
    Democratic Consolidation Advanced, tabled in terms of section
    231(3) of the Constitution, 1996.


(z)     Explanatory Memorandum on the Strategic Objective Grant
    Agreement No 674-0330 between the United States of America and the
    Republic of South Africa for Democratic Consolidation Advanced.


(aa)    Financing Agreement between the European Community and the
    Republic of South Africa concerning Programme of Assistance to the
    Victim Empowerment Programme of the Department of Social
    Development in the South African Government (SA/003/05), tabled in
    terms of section 231(3) of the Constitution, 1996.


(bb)    Explanatory Memorandum on the Financing Agreement between the
    European Community and the Republic of South Africa concerning
    Programme of Assistance to the Victim Empowerment Programme of the
    Department of Social Development in the South African Government
    (SA/003/05).


(cc)    Letter of Agreement for the Provision of Funds from the
    National Forest Programme Facility, through the Food and
    Agricultural Organisation of the United Nations to Department of
    Water Affairs and Forestry of the Government of the Republic of
    South Africa, tabled in terms of section 231(3) of the
    Constitution, 1996.


(dd)    Explanatory Memorandum on the Letter of Agreement for the
    Provision of Funds from the National Forest Programme Facility,
    through the Food and Agricultural Organisation of the United
    Nations to Department of Water Affairs and Forestry of the
    Government of the Republic of South Africa.


(ee)    Financing Agreement between the European Community and the
    Republic of South Africa concerning Economic Development Support
    Programme in the Eastern Cape (SA/003/04), tabled in terms of
    section 231(3) of the Constitution, 1996.


(ff)    Explanatory Memorandum on the Financing Agreement between the
    European Community and the Republic of South Africa concerning
    Economic Development Support Programme in the Eastern Cape
    (SA/003/04).


(gg)    Financing Agreement between the European Community and the
    Republic of South Africa concerning African Union/Nepad Capacity-
    building in Governance and Public Administration (SA/006/04),
    tabled in terms of section 231(3) of the Constitution, 1996.


(hh)    Explanatory Memorandum on the Financing Agreement between the
    European Community and the Republic of South Africa concerning
    African Union/Nepad Capacity-building in Governance and Public
    Administration (SA/006/04).


(ii)    Agreement between the Government of the Swiss Confederation and
    the Government of the Republic of South Africa concerning
    Operational Police Commanders Training in the Democratic Republic
    of  the Congo, tabled in terms of section 231(3) of the
    Constitution, 1996.


(jj)    Explanatory Memorandum on the Agreement between the Government
    of the Swiss Confederation and the Government of the Republic of
    South Africa concerning Operational Police Commanders Training in
    the Democratic Republic of the Congo.


(kk)    Agreement between the Government of the Republic of South
    Africa and the Government of the Kingdom of Denmark regarding the
    Urban Environmental Management Programme in South Africa (2006-
    2010), tabled in terms of section 231(3) of the Constitution, 1996.


(ll)    Explanatory Memorandum on the Agreement between the Government
    of the Republic of South Africa and the Government of the Kingdom
    of Denmark regarding the Urban Environmental Management Programme
    in South Africa (2006-2010).


(mm)    Agreement between the Government of the Republic of South
    Africa through its National Department of Water Affairs and
    Forestry, and the Government of Switzerland through its Swiss
    Agency for Development and Co-operation concerning the Masibambane
    – ‘Local Government Capacity-building through Knowledge Sharing’
    Project (01.04.2005-31.03.2008), tabled in terms of section 231(3)
    of the Constitution, 1996.


(nn)    Explanatory Memorandum on the Agreement between the Government
    of the Republic of South Africa through its National Department of
    Water Affairs and Forestry, and the Government of Switzerland
    through its Swiss Agency for Development and Co-operation
    concerning the Masibambane – ‘Local Government Capacity-building
    through Knowledge Sharing’ Project (01.04.2005-31.03.2008).


(oo)    Strategic Objective Grant Agreement No 674-0331 between the
    United States of America and the Republic of South Africa for
    Support for Economic Growth and Analysis, tabled in terms of
    section 231(3) of the Constitution, 1996.


(pp)    Explanatory Memorandum on the Strategic Objective Grant
    Agreement No 674-0331 between the United States of America and the
    Republic of South Africa for Support for Economic Growth and
    Analysis.


(qq)    Financing Agreement between the European Community and the
    Republic of South Africa concerning Support to Urban Renewal
    Programme in the Eastern Cape (SA/001/05), tabled in terms of
    section 231(3) of the Constitution, 1996.


(rr)    Explanatory Memorandum on the Financing Agreement between the
    European Community and the Republic of South Africa concerning
    Support to Urban Renewal Programme in the Eastern Cape (SA/001/05).

1. The Minister of Labour

(a)     Preliminary Annual Report of the Department of Labour for 2005-
    2006 [RP 45-2006].

1. The Minister of Correctional Services

   a) Strategic Plan of the Department of Correctional Services for 2006/07 to 2010/11.

COMMITTEE REPORTS

National Assembly

1. Report of Ad Hoc Committee on Filling of Vacancies on the Commission on Gender Equality, dated 11 May 2006:

The committee wishes to report as follows: -


 1. The advert by the Department of Justice and Constitutional
    Development published as Notice 295 of 2006 in the Government
    Gazette of 24 February 2006, calling for nominations for candidates
    for appointment to the Commission on Gender Equality, envisages an
    appointment for more of less a period of one year ie until 30
    September 2007, a condition which the committee feels may exclude
    suitable candidates;


 2. In addition Commissioners whose term of office have recently
    expired may be disadvantaged as, in terms of the Act, Commissioners
    only serve for two terms. In this case the second such term will be
    a one year term which would preclude them form serving a full
    second term;


 3. Notes that the Speaker has been in communication with the Minister
    for Justice and Constitutional Development requesting the Minister
    to re-advertise the vacancies, calling for nominations for a term
    of office not exceeding five years as provided for in the
    Commission on Gender Equality Act, 1996 (Act 39 of 1996);


 4. Expresses concern that delays have had the consequence that the
    Commission, from 1 May 2006, consists only of the Chairperson and
    that the proposed re-advertising could result in this situation
    lasting for at least three months;


 5. Further notes that the Commission may be competent to carry out
    only its administrative functions for the next three months while
    the Chairperson is the only Commissioner, as the Commission would
    not be able to fulfil its quorum requirements during this period;


 6. Recommends that the House:
    a) supports the call by the Speaker for the Minister of Justice and
       Constitutional Development to urgently re-advertise the
       vacancies on the Commission on Gender Equality calling for
       nominations for a term of office not exceeding five years as
       provided for in the Commission on Gender Equality Act, 1996 (Act
       39 of 1996);
    b) extends the deadline by which the Ad Hoc Committee must report
       to the House, from 12 May 2006 to allow it to complete its task;
       and
          c) urges all role-players to act urgently to expedite the
             matter.

Report to be considered.

                        TUESDAY, 16 MAY 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Introduction of Bills (1) The Minister for Agriculture and Land Affairs a) Sectional Titles Amendment Bill [B 8 – 2006] (National Assembly – sec 75) [Bill and prior notice of its introduction published in Government Gazette No 28798 of 12 May 2006.]

   Introduction and referral to the Portfolio Committee on Agriculture and Land Affairs of the National Assembly, as well as referral to the JTM for classification in terms of Joint Rule 160, on 16 May 2006.

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

TABLINGS

National Assembly and National Council of Provinces

1. The Minister for Provincial and Local Government

 (a)    Report and Financial Statements of the South African Local
    Government Association (SALGA) for 2004-2005, including the Report
    of the Auditor-General on the Financial Statements for 2004-2005
    [RP 21-2006].

National Assembly

1. The Minister for Provincial and Local Government

Letter from the Minister for Provincial and Local Government dated 11
May 2006 to the Speaker of the National Assembly, in terms of section
65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999),
explaining the delay in the tabling of the Annual Report of the South
African Local Government Association (SALGA) for 2004-2005:


LATE TABLING OF THE SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION ANNUAL
REPORT FOR 2004/05


I write to furnish you with reasons, in terms of Section 65(2) of the
Public Finance Management Act (PFMA), 1999 for the delay in the tabling
of the 2004/05 South African Local Government Association Annual Report
to Parliament. In terms of Section 65(1) of the PFMA, all Executive
Authorities are required to table their Annual Reports and those of the
entities under their responsibility, financial statements and the
Auditor-General’s report on the financial statements. The financial
year-end for SALGA is 30 June and consequently, the report should have
been tabled by 31 December 2005.


The main reason for the delay was due to the challenges experienced in
the preparation of final consolidated financial statements, which could
only be submitted to the Office of the Auditor-General on 31 October
2005. Another factor that has contributed to the delay was the adoption
of a new SALGA Constitution in September 2004, which provides for a
unitary structure. This meant that all the accounts for the provincial
associations had to be consolidated with the national association for
the 2004/05 financial year.


These challenges included the fact that some provincial associations had
not prepared financial statements since 2000/01, the difference in
accounting policies, lack of capacity in provincial offices and certain
Memoranda of Understanding giving effect to the integration had to be
re-signed.


Kindly be advised that the Annual Report of SALGA will be tabled on
Monday, 15 May 2006.


I thank you in advance for your co-operation.


Kind regards


Signed

F S MUFAMADI

MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT

1. The Minister for Justice and Constitutional Development

   Letter from the Minister for Justice and Constitutional Development to the Speaker of the National Assembly, dated 9 May 2006, informing her of the resignation of Magistrate, R Ameer, an Additional Magistrate at Pinetown.

Dear Madam Speaker


RESIGNATION OF MAGISTRATE MR R AMEER, AN ADDITIONAL MAGISTRATE AT
PINETOWN


A report on the provisional suspension of Mr Ameer from office with
effect from 23 November 2005 was tabled in Parliament on 24 November
2005. It was done in terms of 13(3)(b) of the Magistrates Act, 1993. Mr
Ameer’s provisional suspension is still under consideration by the two
Houses of Parliament in terms of section 13(3)(c) of the Act.


I have in the meantime received a report from the Magistrates
Commission informing me that Mr Ameer has tendered his resignation from
the magistracy with effect from 10 April 2006. His resignation on short
notice has been accepted and he has in fact already vacated his office.
Since he is not a magistrate any longer, the two Houses may discontinue
its consideration of the report in relation to his provisional
suspension. On this basis I herewith formally withdraw the report which
I have tabled in Parliament in terms of section 13(3)(b) of the
Magistrates Act, 1993 on 24 November 2005.


With kind regards


Signed

MS B S MABANDLA, MP


MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT

COMMITTEE REPORTS

National Assembly

1. Report of the Portfolio Committee on Labour on budget hearings with public entities, dated 4 May 2006:

   The Portfolio Committee on Labour, having conducted budget hearings with public entities that report to the Minister of Labour on 13, 14, 15 and 24 March 2006 in respect of their work plans and budgets for 2006/07, reports as follows:

   A. Briefings

    1.    Unemployment Insurance Fund (UIF) – 13 March
   
   
          The Committee was briefed on the mandate and key objectives
          of the UIF, achievements during 2004/05, budget proposals,
          strategic overview, key expenditure projects, budget
          highlights and financial performance indicators.
   
   
          The mandate of the UIF includes providing effective short-
          term unemployment insurance to all workers who qualify for
          unemployment and related benefits.  The key objectives are
          to broaden coverage of beneficiaries, as well as improve
          service delivery.
   
   
          The UIF had been successful in registering domestic workers
          and farmworkers.  The number of employees that were covered
          by the UIF had increased by 9%.  In terms of revenue, the
          UIF had received R6,152 billion and paid out R2,475 billion
          in benefits.  During 2004/05, the investment stood at 9,7%
          compared to the previous financial years.
   
   
          The UIF has made substantial improvements in terms of
          financial viability and service delivery.  By the end of
          March 2005, the UIF had accumulated R10,2 billion in
          reserves.  An amount of R9,8 million was channeled to the
          Public Investment Corporation.
   
   
          The operational system, namely Siyaya, had been finalised
          and rolled out to labour centres.  This system will result
          in the speedy processing of claims and better management of
          information.  All new claimants were paid via Electronic
          Fund Transfer (EFT) since January 2006. The integrated
          financial system, namely Access 1, had been finalised and
          will be implemented in April 2006.
   
   
          In resolving administrative challenges, the UIF had beefed-
          up its capacity through the appointment of a chief
          financial officer (CFO) and executive managers responsible
          for risk management and revenue collection.  Service
          partnerships were forged with agencies such as the South
          African Revenue Services (SARS) on U-filing.  The latter
          will help to identify employers that are not declaring
          their payroll and payments.  This system will be rolled out
          in all labour centres.
   
   
          With respect to improving institutional capacity, the
          investigation into a new model for the UIF concluded that
          the corporate form that suits the UIF would be a government
          agency with assigned power, as envisaged by the new
          framework for public entities that was currently finalised
          by the Department of Public Service and Administration
          (DPSA). That would mean that the operations of the UIF will
          be ring-fenced from the DOL. The UIF will fall under the
          direct control of the Minister, and the UIF board will
          remain an advisory body.  The Minister will appoint the
          Unemployment Insurance Commissioner, who is a public
          servant, to administer the Fund.  Another priority in the
          medium term would be the recruitment and re-skilling of
          appropriate resources to manage the new business
          environment. The “agencification” of the UIF will resolve
          the accounting authority dilemma that the UIF experienced.
   
   
          In relation to compliance by employers, the DOL
          acknowledged that the SMMEs were not an easy sector to
          regulate.  However, through various awareness campaigns,
          there has been an increase in compliance, especially by the
          SMMEs.   There was evidence of an increase in the number of
          registered employers, the number of declarations received,
          as well as the amount of revenue collected.  Both employers
          and employees were becoming aware of their rights and
          responsibilities.   To deal with defiant employers, the UIF
          makes use of DOL inspectors to enforce compliance.
   
   
    2.    Presentation by the Compensation Fund (the Fund)
   
   
          The Compensation Fund briefed the Committee on the
          following:
   
   
          *     The Compensation of Occupational Injuries and
             Diseases Act (COIDA)
          *     Summarised income budget
          *     Income generation and investments
          *     Claims reimbursements and reporting
          *     Achievements, challenges and key priorities.
   
          To improve the capacity of the Compensation Fund in
          processing claims timeously and to achieve the 70% claim
          settlement target, the Fund will be embarking on a
          management reform and restructuring process.  Part of this
          will include redesigning and aligning business processes
          and redesigning the structure and functioning of the Fund
          for optimum service delivery.  Some functions will be
          decentralised to provinces and labour centres as part of
          taking services closer to people.
   
   
          The Fund will establish and improve relations with
          strategic partners to share experiences in processing
          claims.  Discussions were held with Mutual Association to
          establish if the Fund could inherit its systems for medical
          claims.  The Fund will embark on an advocacy campaign to
          inform clients of procedures and requirements for lodging
          claims.  Staff will be trained to improve their capacity in
          handling claims and customer relations.  The inspectorate
          services will be used to enforce the law over employers who
          fail to report incidents.
   
          The Fund will use the services of Siemens Business Services
          to address systems challenges.  This will include an
          Integrated Employer Database that will be linked to the UIF
          and Occupational Health and Safety (OHS), and an integrated
          electronic claims management system.
   
          Cabinet approved the process of integrating occupational
          health and safety competencies.  A technical task team
          comprising officials from the Department of Labour, the
          Department of Health and the Department of Minerals and
          Energy was established to work on this process.  Currently
          a draft policy and draft Bill were being developed for
          submission to the responsible Ministers during this
          financial year.
   
          The Fund had a backlog due to shortcomings in the
          information system. This resulted in some documents being
          kept in files and being captured manually.  The Fund was
          not yet in a position to quantify the backlog.  The
          integration of systems would help to quantify the extent of
          the backlog.  The Committee was also informed that the
          possible decrease in the medical payment was as a result of
          the increasing trend in the monetary value of payments
          processed.
   
    3.    Briefing by the Commission for Conciliation, Mediation and
          Arbitration (CCMA) – 14 March
   
          The CCMA briefed the Committee on the following:
   
          *     Its vision, structure and people profile
          *     Dispute resolution, case referrals vs jurisdictional
          cases
          *     The impact of the 2002 legislative amendments
          *     Dispute management and prevention.
   
   
          The vision of the CCMA is to promote social justice and
          economic growth with social partners by transforming
          relations in the labour market.  This will be achieved by
          delivering high quality low cost dispute resolution and
          prevention services.
   
   
          People profile
   
   
          The staff complement is as follows:
   
   
          Human Resources         -    951
          *     Full-time employees     -   396
          *     Part-time employees    -    555
   
   
          Commissioners          -     409
          *     Full-time        -      76
          *     Part-time       -     333
   
   
          Registry               -     542
          *     Full-time       -     320
          *     Part-time       -     222
   
   
          The Committee sought clarity on the issue of full-time and
          part-time commissioners.  The Labour Relations Act provided
          for the appointment of both full-time and part-time
          commissioners.  Part-time commissioners and part-time
          interpreters are temporary workers who are not on fixed-
          term contracts.  They work depending on their availability.
           Part-time commissioners are usually private practitioners
          who also render services to bargaining councils and other
          private dispute organisations, and have their own
          businesses.
   
   
          The CCMA acknowledged that it was faced with a challenge of
          attracting and retaining competent managers and
          commissioners who could address the needs of the
          organisation, and who understood dispute resolution in the
          labour market.  The CCMA has an extensive training
          programme for commissioners to ensure that they uphold the
          professionalism and ethics of the organisation.  It also
          intends to participate in the learnership programme to
          ensure that commissioners are accredited with a
          qualification by the South African Qualifications Authority
          (SAQA).
   
   
          The Committee raised the issue of poor performance by some
          commissioners.  The CCMA acknowledged that there are
          commissioners who are not performing well, and that it has
          specific processes to deal with such commissioners.  Some
          commissioners were dismissed for poor performance and poor
          conduct.  The CCMA is committed to recruiting, developing
          and retaining employees who embrace and demonstrate the
          values, ethics and conduct set by the institution.
   
   
          Caseload by region
   
   
          The CCMA indicated that the geographical size of some
          provinces posed a resource challenge.  For example in
          provinces such as the Northern Cape, the Eastern Cape and
          Mpumalanga, the CCMA was often challenged to use resources
          effectively because of the vast distances that have to be
          travelled to ensure that it reached people in outlying
          rural areas.
   
   
          Caseload
          The information given to the Committee on case referrals
          demonstrated an increase in the number of cases referred to
          the CCMA since its inception in 1997 until 2005.
   
   
          In the case of referrals by sector, the retail sector was
          the highest referring sector.  There has been an increase
          in business or professional services sector due to more
          referrals from the information technology (IT) sector.  The
          CCMA anticipates an increase in the caseload of the
          construction sector.
   
   
          The challenge facing the CCMA is the cost of dealing with
          out-of-jurisdiction cases, as well as educating the public
          about the correct forum for their issues since the CCMA is
          viewed as the first port of call.
   
   
          Conciliations
   
   
          The CCMA acknowledged that although the Labour Relations
          Act spelt out conciliation, there were areas that needed
          improvement.  The 30-day requirement relating to
          conciliation had to be enforced.
   
   
          Statutory dispute resolution delivery
   
   
          The CCMA alluded to the fact that the law does not set out
          time-frames for arbitration.  It had itself agreed on an
          internal target of 90 days.  However, the postponement of
          hearings due to non-attendance by parties lead to
          protracted processes and added to the administrative
          workload of the organisation.  Another challenge relates to
          the high number of applications for the enforcement of
          arbitration awards in terms of section 143 of the Labour
          Relations Act.
   
   
          With respect to representation, almost 75% of CCMA users
          come without representation.  These are workers who come
          without a trade union representative.  The CCMA
          acknowledged that it had not succeeded in this area, and
          that it remains an ongoing challenge. However, there are
          mechanisms to reach communities and unorganised sectors in
          each province, for example by making use of community radio
          stations to inform the public about key issues around
          accessing the CCMA.  The CCMA also uses road shows and
          izimbizo to educate the public about their rights and how
          to exercise their rights in the workplace.  Negotiations
          were held with the DOL about the use of mobile units so
          that the CCMA could be part of the process that would
          assist in reaching rural communities. The challenge is,
          however, to develop the capacity of the CCMA to deliver in
          that regard.  The CCMA affirmed its commitment to improving
          communication.
   
          Workload vs resources
   
   
          The CCMA is faced with a huge demand on its resources.
          Labour market conditions are changing, and economic growth
          brings challenges to the organisation.  Another challenge
          is that of attracting and retaining competent managers who
          can address the needs of the organisation.
   
   
          The issue of attorneys and the ability to gain access to
          CCMA processes are controversial areas.  The law does not
          allow legal representation, although it does allow for
          certain specific circumstances where parties are entitled
          to legal representation before the commissioner.  However,
          the CCMA does instill a policy into its commissioners that
          they must apply the law strictly.
   
   
          The CCMA has developed a comprehensive strategy and policy
          to manage the impact of HIV/Aids in the workplace.  Part of
          the strategy includes members who are affected by HIV/Aids.
   
   
          The Committee was informed that labour brokers remain a
          problem.  The Minister of Labour had commissioned research
          on atypical forms of employment.  Constituencies at NEDLAC
          were dealing with a report on the study.
   
   
          Budget details
   
   
          The total budget for 2006/07 is R208 million.  This amount
          represents a 3% increase on the budget for 2005/06.
   
   
          The key issues and challenges facing the CCMA were as
          follows:
   
   
          *     The ability to meet increasing demands with a
             diminishing budget and limited human resource capacity.
          *     The labour market conditions and a relatively
             volatile industrial relations climate.
          *     The capacity of CCMA users to access CCMA services.
          *     The negative public perceptions of the CCMA, for
             example bureaucracy.
   
   
          Recommendations
   
   
          (1)   The CCMA should take the Committee through the legal
             interpretation of the Labour Relations Act.
   
   
          (2)   The Committee should visit the CCMA offices in order
             to become familiar with backlogs.
   
   
    4.    Briefing by NEDLAC on the strategic plan and budget for
          2006-2008 – 15 March
   
   
          NEDLAC briefed the Committee on the following:
   
   
          *     Vision and mission
          *     Key objectives
          *     NEDLAC’s modus operandi & structure
          *     The 2006/2007 work programmes of NEDLAC Chambers
          *     Budget expenditure for 2006-2008.
   
   
          The Committee was also briefed on the following:
          *     Sector summit programme
          *     Section 77 report as it pertains to the Labour
          Relations Act
          *     Implementation of the Growth and Development Summit
             agreements and programme
          *     Special projects
          *     Communication.
   
   
          Budget details
   
   
          NEDLAC receives its budget from the Department of Labour.
          The total income for 2006/07 is R13,1 million.  The capital
          expenditure amounts to R603 750.  Thirty-one per cent of
          the budget goes towards salaries.  An amount of R1,3
          million is allocated to capacity building for
          constituencies.
   
   
          The Committee was concerned that nothing was mentioned
          about challenges and highlights in implementing the Growth
          and Development Summit (GDS) agreements. A presentation on
          the GDS progress report will be made to the Committee as
          soon as it has been presented to the Presidential Working
          Group.  The report will reflect on progress and bottlenecks
          in the implementation of the agreements.
   
   
          The Committee was informed that the issue of building
          social dialogue capacity at provincial and local levels was
          left to each of the NEDLAC constituencies to take forward.
          However, provinces are currently building social dialogue
          tools.  The GDS agreements have a section that deals with
          social dialogue at local level.  The Department of
          Provincial and Local Government (DPLG) has embarked on road
          shows at both provincial and local level to raise awareness
          about the GDS.  NEDLAC is committed to building capacity at
          local level.
   
   
          NEDLAC acknowledged that there were challenges in the
          operation of co-operatives.  A conference will be held to
          deal with such challenges.
   
   
          Recommendations
   
   
          (1)   The GDS agreements, provincial growth and development
             strategies (PG&DS) and Integrated Development Plans
             (IDPs) should be aligned.
   
   
          (2)   The Committee should facilitate a special session to
             deal with the progress report on the GDS agreements.
   
    5.    Briefing by the National Productivity Institute and
          Umsobomvu Youth Fund on their strategic plans/work plans
          and budgets for 2006/07 – 24 March.
   
   
          a)    Presentation by National Productivity Institute (NPI)
   
   
   
   
                The Committee received a briefing on the following:
   
   
                *     The contextual framework
                *     Summary of achievements and milestones for
                  2005/06
                *     Strategic objectives and programmes for 2006/07
                *     Organisational management.
   
   
                The strategic plan has incorporated the lessons
                learnt from the implementation of the programmes in
                past years, as well as the Department of Labour’s
                Ministerial Programme of Action 2004-2009.
   
   
                The NPI has consolidated and refocused its efforts to
                align it with the Accelerated Shared Growth
                Initiative for South Africa (Asgisa), especially in
                the priority industry sectors, skills development,
                small-micro enterprises, employment creation and
                retention, and promoting sound relations between
                management and workers.  The strategic plan will
                enable the NPI to deliver on its mandate to enhance
                productivity in South Africa.
   
   
                Strategic objectives for 2006/07
   
   
                The key strategic objectives are as follows:
   
   
                *     To increase the productivity and
                  competitiveness of South African enterprises.
                *     To build the productive capabilities of small
                  and micro enterprises.
                *     To generate and disseminate knowledge on key
                  productivity drivers   and challenges.
                *     To provide strategic leadership on
                productivity.
                *     To enhance public sector efficiency and
                  effectiveness.
                *     To ensure financial sustainability of the NPI.
   
   
                The following programmes will be undertaken to
                achieve the stated strategic objectives:
   
   
                *     Programme 1: Sector initiatives
                *     Programme 2: Public sector productivity
                *     Programme 3: Enterprise productivity and
                  competitiveness
                *     Programme 4: Knowledge management and research
                *     Programme 5: Productivity strategic leadership.
   
   
   
   
                Budget details
   
   
                The revenue sources are government grants, social
                plan funding, work place challenge, and other
                funding.  The total revenue for 2006/07 is R71, 001
                million.  This amount includes R25, 369 million which
                is a government grant, R17, 342 million for social
                plan funding, R12, 000 million for workplace
                challenge funding, as well as R16, 290 million from
                other sources such as the sector enterprise
                development agency (SEDA).  The bulk of the funding
                for 2006/07 will go towards enterprise productivity
                and competitiveness, and public sector productivity.
                The NPI is unable to make the kind of impact it would
                like to make due to inadequate funding.
   
   
                Discussion
                The NPI had signed a Memorandum of Understanding
                (MOU) with the Development Bank of Southern Africa
                (DBSA) to devise a strategy that will address the
                challenge of technical agricultural competencies.
                The Committee was of the view that there is a need to
                focus on increasing productivity in the agricultural
                sector, especially in the rural areas.
   
   
                The NPI is in the process of signing an MOU with the
                Tourism and Hospitality Education and Training
                Authority (THETA) and the Local Government, Water and
                Related Services Sector Education and Training
                Authority (LGWSETA) in ensuring that productivity is
                infused in their learnership programmes.  With
                respect to the LGWSETA, the intention is to
                incorporate productivity into learnership programmes
                that are aimed at Community Development Workers
                (CDWs).  The NPI had conducted research for the
                Services SETA to determine the impact of productivity
                on the Services SETA learnership.  The results showed
                that participants were more prepared and had a better
                chance of being employed.
   
   
                The issue around the sustainability of the NPI
                remains a major challenge.  The Committee was
                informed that the NPI falls into the category of
                entities that was inherited in 1994.  Cabinet had
                established that there were constraints due to the
                lack of policy to sustain these institutions.  This
                creates problems, especially when raising the issue
                of increasing resources with Treasury for
                institutions such as the NPI.
   
   
                The Committee was also informed that some employees
                had left the institution as a result of
                nonperformance, retirement and better prospects.
                Private sector salaries attract young people.  In
                terms of its retention strategy, the NPI would have
                to look at capacity building and remuneration to
                ensure that people get satisfaction from personal
                growth in the organisation.
   
   
                The Committee expressed its concern at the lack of
                awareness by the public on the work done by the NPI.
   
   
   
   
                The Committee commended the intervention of the NPI
                in local municipalities in Mafikeng.
   
   
                Recommendation
   
   
                More needs to be done to raise public awareness  on
                the work of the NPI.
   
   
          b)    Presentation by Umsobomvu Youth Fund (UYF)
   
   
                The outline of the presentation was as follows:
   
   
                *     The UYF products and services
                *     Recap of the presentation on the 2005/06 annual
                  report of the UYF
                *     The State-of-the-Nation Address (SONA)
                  Programme of Action
                *     Approved plans for 2006/07.
            The highlights for 2006/07 included the following:
   
   
                *     Implementation of Youth Advisory Centre points
                  by 53 municipalities.
                *     Implementing programmes that are aimed at
                  placing graduates by focusing on BPO Industry and
                  Tourism.
                *     Using unutilised training facilities.
                *     Introducing the Volunteer Youth Service
                  Programme and increasing the intake into the
                  National Youth Service (NYS) Programme.
                *     Using the UYF model for defining and scaling up
                  the Social Sector Expanded Public Works Programmes
                  (EPWPs).
                *     Introducing a Volunteer Mentorship Programme
                  with organised business formations.  The UYF would
                  work with organisations such as the Afrikaanse
                  Handelsinstituut (AHI) and the South African
                  Chamber of Business (SACOB) to solicit support for
                  business people to mentor young people.
                *     Intensifying the implementation of Youth in
                  Local Economic Development (LED).
   
   
                Budget details
   
   
                The UYF will receive a once-off allocation of R855
                million from National Treasury.
   
   
                Discussion
   
   
                One of the major weaknesses has been the sole
                reliance on service providers for access to UYF
                services.  The scaling up and accessing of UYF
                services to operate in areas such as rural areas
                posed a challenge since there may be no reliable
                service providers at all.  The implementation of UYF
                outlets would address visibility and accessibility in
                rural areas.  This would also enable the scaling up
                of UYF programmes and facilitate the integration of
                services.
   
   
                There are a number of projects that fit what the UYF
                is focusing on in order to support Asgisa.  Key
                amongst these are the National Youth Service
                Programme that would specifically focus on home-based
                care.  This would be linked to the Expanded Public
                Works Programme, the youth service for caring for
                vulnerable children, support to youth small, medium
                and micro enterprises (SMMEs) and co-operatives, and
                the roll-out of 100 youth advisory and access points.
                 The UYF is regarded as one of the key interventions
                for the second economy.
   
   
                One of the UYF voucher programmes is meant to help
                the youth access procurement opportunities.  There
                are also a number of interventions with co-
                operatives.  The UYF had so far funded 28 co-
                operatives.  However, there was a need for training
                to improve productivity.
   
   
                The Committee was concerned at the UYF being
                perceived by local municipalities as a panacea for
                youth unemployment.  A proposal was made that the UYF
                engage the Department of Provincial and Local
                Government (DPLG) on the matter.
   
   
                Recommendations
   
   
                (1)   The UYF should speed up the process of rolling-
                     out of youth advisory centres and access points
                     in all the provinces.
   
   
                (2)   The UYF should consider training young people,
                     especially in rural areas to become service
                     providers.
   
                (3)   The Department of Provincial and Local
                     Government should ensure that youth development
                     is budgeted through programmes such as IDPs and
                     LEDs.
   
   
                (4)   The UYF should look into the possibility of
                     using DOL mobile units to extend its services.
   
   
                (5)   The Committee should consider visiting some of
                     the UYF projects.
   

   B. Conclusion

    The Committee supported the 2006/07 work plans and budgets of
    the UIF, the Compensation Fund, the CCMA, NEDLAC, the NPI and
    the Umsobomvu Youth Fund.
   

2. Report of the Portfolio Committee on Labour on budget hearings held on Budget Vote 17: Labour, dated 4 May 2006:

   The Portfolio Committee on Labour, having considered Budget Vote 17: Labour, reports as follows:

   A. Introduction

    The budget review of the Department of Labour (DOL) was held on
    9 and 29 March 2006.  Hearings were held with six public
    entities that report to the Minister of Labour.  The report on
    the budget review also relates to the Strategic Plan of the DOL
    for 2006-2009 and the 2006 State-of-the-Nation Address (SONA).
    The report presents the submissions by the DOL at the briefings.
   
   
   
   
    The delegation that appeared before the Committee comprised:
   
   
    Dr V Mkosana, Director-General;
    Mr S Mkhonto, Deputy Director-General: Service Delivery;
    Ms M Xaba, Deputy Director-General: Corporate Services;
    Mr L Kettledas, Deputy Director-General: Labour Policy and
       Labour Market Programmes;
    Mr S Morotoba, Acting Deputy Director-General: Employment and
       Skills Development;
    Mr P Mothiba, Acting Commissioner: Compensation Fund;
    Mr B Serume, Acting Commissioner: Unemployment Insurance Fund. B.    Overview of the Strategic Plan
   
    The Committee was informed that the budget reflected the
    priorities set up for the 2006-2009 strategy. The strategy is
    informed by commitments outlined in the Ministerial Programme of
    Action for 2004-2009 that emphasises the following:
   
   
    *     Enhancing skills development through the National Skills
          Development Strategy (NSDS) to meet the skills needed by
          the country, and in particular to address this within the
          context of the binding constraints on growth as articulated
          in the Accelerated and Shared Growth Initiative for South
          Africa (Asgisa).
   
   
    *     Establishing an employment services system to facilitate
          the matching of supply and demand for labour.
   
   
    *     Promoting employment equity in the labour market by
          removing unfair discrimination.
   
    *     Protecting vulnerable workers through sectoral
          determinations and strengthening the inspection and
          enforcement mechanisms.
   
   
    *     Ongoing review and monitoring of the impact of labour
          market policies and programmes.
   
   
    *     Strengthening the capacity of the DOL to deliver on its
          mandate.
   
    The implementation of the Strategic Plan of the DOL would assist
    in achieving the following objectives:
   
   
    *     Delivery of services in pursuance of the DOL’s stated
          vision of a labour market that is conducive to economic
          growth, investment and employment creation.
   
   
    *     Effective and efficient implementation of government
          policies in the labour market.  This will be accompanied by
          ongoing institutional transformation to enhance service
          delivery.
   
   
    *     Assessment of progress and challenges against a set of key
          targets.
   
    *     Implementation of a comprehensive performance management
          system through work plans and performance agreements.
   
   
    *     Development and implementation of a service delivery
          improvement programme aimed at ensuring client
          satisfaction.
   
    Among the key elements of the strategy are the following:
   
   
    Employment creation
   
   
    The shortage of skills is one of the constraints that was
    identified in Asgisa.  The NSDS for 2005-2010 was identified as
    being sensitive and responding to the challenge posed by Asgisa.
     The DOL affirmed its commitment to ensure the alignment of the
    NSDS to the challenges put forward by the Asgisa initiative.
    The DOL would continue to align the NSDS to the Expanded Public
    Works Programme (EPWP) in order that people with low skill
    levels and the unemployed could be equipped with skills and
    provided with work experience.
   
   
    The DOL had developed a career information and guidance system
    that would be piloted in labour centres in all provinces. The
    system provides employment services to job seekers and learners
    seeking to access learnerships.  The system would also assist in
    tracking learners who have completed their training.  The DOL
    would also ensure the development of the database of all
    graduates and the registration of private employment agencies to
    enable the job matching process.  This system would be rolled
    out in collaboration with the Umsobomvu Youth Fund, and
    implemented in all labour centres and multipurpose community
    centres (MPCCs).
   
   
    Alleviating poverty by addressing the needs of vulnerable workers
   
   
    The DOL would continue to enforce sectoral determinations to
    protect workers in vulnerable sectors. Current sectoral
    determinations would be evaluated.  However, bargaining councils
    would be established in vulnerable sectors such as security,
    civil engineering, contract cleaning and the building industry.
    Sectoral determinations will be established for the welfare and
    hospitality sectors.  The DOL intimated that South Africa had no
    general law that determined a minimum wage except sectoral
    determinations on specific sectors.  The question is where to
    place a limit on such a payment.
   
   
    The DOL is committed to ensuring the finalisation and
    implementation of the Child Labour Action Programme (CLAP).
    Progress has been made in aligning child labour institutional
    structures with the policy framework developed by the Office on
    the Rights of the Child in the Presidency. The Committee
    registered its concern around the issue of child labour.  The
    Committee felt that child labour should not be treated
    separately from cheap labour.  It appealed to the DOL to develop
    a strategy that would deal with child labour.
   
   
    The study on atypical forms of employment that is currently in
    progress at NEDLAC will assist in devising ways to regulate
    casualisation.  The Committee was concerned about labour
    brokers, especially their effect on the levels of poverty and
    the exploitation of workers.  The proposed regulation will,
    however, assist in determining who are employers and employees.
   
   
   
   
    Promotion of employment equity
   
   
    The DOL reported that it was developing amendments to the
    regulations, which would be published at the end of March 2006.
    The Director-General’s Review System had been developed and was
    due for implementation during 2006/07. The Committee was also
    informed that the DOL was aiming at a Code of Good Practice on
    the Integration of Employment Equity into Human Resource
    Policies and Practices, as well as amendments to the Code of
    Good Practice on the Handling of Sexual Harassment Cases in the
    Workplace.  Discussions were continuing with the Department of
    Trade and Industry (DTI) on aligning the Broad-Based Black
    Economic Empowerment Act with the Employment Equity Act.   The
    approval by the DOL and the Minister of the BEE code will
    determine the percentage that companies should achieve in order
    for them to have complied with the code.
   

   C. Overview of the budget

    The budget allocated to the DOL for 2006/07 is R1, 512 billion
    compared to R1, 382 billion appropriated for 2005/06.  In terms
    of the Medium-Term Expenditure Framework (MTEF), the projected
    allocations for the next two financial years are R1, 596 billion
    and R1, 677 billion.  The bulk of the budget goes to Programme
    2: Service Delivery.  However, the budget has increased at a
    nominal rate of 9,4% and a real increase of 4%.
   
   
    The total amount allocated for transfers was R372, 945 million.
    The projected transfers over the MTEF period are R392, 015
    million for 2007/08 and R429, 157 million for 2008/09.
   
   
    Allocation per programme
   
   
                 Programme 1: Administration
   
   
    The amount allocated for 2006/07 is R336, 239 million.  The bulk
    of the budget is allocated to the sub-programme on Corporate
    Services for leases and rental of buildings.  This is due to the
    fact that from 1 April 2006, such costs would be devolved from
    the Department of Public Works (DPW) to individual departments.
    More detailed information on this programme is on page 362 of
    the Estimates of National Expenditure (ENE).
   
   
    Programme 2: Service Delivery
   
   
    This is the primary programme that ensures that labour
    legislation and policies are implemented in an integrated
    manner.
   
   
    The amount allocated for 2006/07 is R623, 370 million.  The MTEF
    estimate is R647, 409 million for 2007/08 and R666, 577 million
    for 2008/09.  The increase in expenditure was due to the
    purchase of mobile units.  The expenditure on the sub-programme
    on Inspections and Enforcement was due to specific
    investigations into certain occupational health and safety (OHS)
    incidents.
   
   
    Programme 3: Employment & Skills Development Services (ESDS) and
    Human Resource Development (HRD)
   
   
    This programme focuses on implementing the NSDS, and contributes
    to implementing the national HRD strategy.
   
   
    The total allocation for 2006/07 is R186, 409 million.  This is
    against R142, 579 million appropriated in 2005/06.  The MTEF
    estimate is R201, 649 million for 2007/08 and R206, 479 million
    for 2008/09.
   
   
    Out of the total allocation for 2006/07, R86, 035 million would
    be transferred to departmental agencies as follows:
   
    *     National Skills Fund              – R42, 666 million
    *     National Productivity Institute (NPI) – R25, 369 million.
   
   
    The work programmes detailing how these entities will spend
    their funds are reflected in the report on budget hearings with
    public entities that report to the Minister of Labour.
   
   
   
   
    Programme 4: Labour Policy and Labour Market Programmes (LP &
    LMP)
   
   
    This programme is responsible for establishing an equitable and
    sound labour relations environment, and promoting South Africa’s
    interests in international labour matters.
   
   
    The amount allocated to this programme for 2006/07 is R357, 230
    million.  Out of this amount, R12, 712 million would be
    transferred to Nedlac.  An amount of R45, 986 million has been
    set aside for sheltered employment.
   
   
    Presentation on the National Skills Fund (NSF) budget for 2006/07
   
   
    The Committee received a briefing on the following:
   
   
    *     Primary objectives of the NSF;
    *     Legislation and corporate governance;
    *     Main tasks;
    *     Expenditure trends and achievements;
    *     New funding windows.
   
    The challenges for 2006/07 include the following:
   
   
    *     Ensuring a smooth transition between NSDS I and NSDS II.
    *     Developing a course fee model under the social development
          funding window, including learner allowances;
    *     Strengthening monitoring and quality control systems for
          all funded projects;
    *     Strengthening the management capacity of the NSF,
          including provincial labour centres, to ensure the
          effective and efficient functioning of the NSF;
    *     Increasing demands placed on the NSF’s financial and human
          resources, based on an increasing awareness about the work
          of the NSF.
   
   
    The total budget for 2006/07 is R86, 035 million compared to
    R64, 185 million appropriated in 2005/06.  The MTEF estimates
    are R89, 436 million for 2007/08 and R93 729 million for
    2008/09.  The bulk of the funding would be allocated towards
    critical skills, social development and strategic projects.
    Almost 70% of the budget would be disbursed to regions and
    labour centres.
   
   
    The revenue source of the NSF includes 20% of the total skills
    levy paid by employers towards skills development and collected
    by the South African Revenue Services (SARS), money appropriated
    by Parliament, interest earned on investments, etc.  The
    Committee was informed that the compliance rate has improved by
    71% due to the 1% increase on levy payments.
   
   
    The Committee raised its concern around the R 41, 605 million
    that was meant for the Manpower Development Authority of
    Bophuthatswana (MANDAB), which was not used.  These funds were
    transferred to the NSF from the North West Province and
    earmarked for training.  The DOL acknowledged that the
    expenditure of those funds was duly delayed.  However, with the
    assistance of the North West Province R17 million has been
    disbursed.  The DOL also acknowledged that the capacity in
    provinces was not at the expected level.  The strengthening of
    HRD at the regional labour centres would strengthen the capacity
    to deliver.
   
   
    The DOL acknowledged that there was no proper system of pinning
    down the placement of learners that were funded through the
    National Student Financial Aid Scheme (NASFAS).  Asgisa would
    provide an opportunity for trained learners to obtain jobs.
    There was a concern on whether the NSF and Sector Education and
    Training Authority (SETA) funds would be able to sustain
    everything that was set by Asgisa.
   
   
    The NSF projected decrease on the surplus could be attributed to
    the gradual increase in its ability to spend more.  A steady
    flow of expenditure was anticipated during 2006/07.
   
   
    The Committee proposed that it be provided with a comprehensive
    written report on funds that were not used by the NSF.
   

   D. Recommendations

    1.    The DOL should provide the Committee with regular reports
          on identified areas, such as the use of the MANDAB Fund, as
          well as measures it would use in cases where those funds
          were not spent.
   
    2.    The DOL should devise a mechanism that would ensure that
          the MANDAB funds are used within the parameters of labour.
   
    3.    The DOL should develop a comprehensive strategy to deal
          with labour brokers.
   
    4.    A joint workshop between the Committee and DOL should be
          organised to deal effectively with labour policy issues.
   

   E. Conclusion

    The Committee supports the Strategic Plan and the Budget Vote of
    the DOL, although it is of the view that more emphasis should be
    placed on how the DOL will achieve its objectives.
   
   
                    WEDNESDAY, 17 MAY 2006
   

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Arts and Culture

 (a)    Strategic Plan of the Department of Arts and Culture for 1 April
       2006 to 31 March 2009.

[1] If compared to the figures for 2005/06 budget, the amount increases by 53%. [2] This document has not yet been submitted [3] Total Contract Value is approximately 20% of the work of the AG based on its capacity shortfall. [4] All tables and graphs were compiled by authors using National Treasury data.