National Assembly - 20 June 2006

TUESDAY, 20 JUNE 2006 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY

                                ____

The House met at 14:00.

House Chairperson Mr G Q M Doidge took the Chair and requested members to observe a moment of silence for prayers or meditation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

                  PRESIDENT THABO MBEKI’S BIRTHDAY


                         (Draft Resolution)

Mrs R A NDZANGA: Chair, I hereby move without notice:

That the House –

(1) notes that on Sunday, 18 June 2006, President Thabo Mbeki celebrated his birthday;

(2) further notes the commendable manner in which the President carries out his duties on behalf of our country and people, diligently contributing in the struggle to create a better life for all; and

(3) wishes the President of the Republic a happy belated birthday and many more enjoyable moments now and in the future.

[Applause.]

Mr M J ELLIS: Mr Chairman, certainly the DA associates itself with the motion without notice, but we do have a convention amongst the Whips that it is the Chief Whip or the Deputy Chief Whip who will in fact propose those motions on behalf of his or her party. I just want to draw that to the attention of the Whips, and suggest that they get their act together again.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): If that matter can be addressed by the Whips.

The CHIEF WHIP OF THE MAJORITY PARTY: Chair, can I respond, please?

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Can I deal with this point first, Chief Whip?

I heard you say, Mr Ellis, that there is no objection to the motion.

Agreed to. The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please respond, Chief Whip.

The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, the tradition of this organisation called the ANC respects the role of veterans. The birthday of such an important person befits somebody of the stature of Ma Ndzanga. Thank you very much. [Applause.]

Mr M J ELLIS: May I respond to that, please, Mr Chairman? Mr Chairman, we discuss this kind of thing at the Chief Whips’ Forum and other bodies so often. It is a question of communication. I would really say to the ANC if they had communicated that to us, we probably wouldn’t have an objection, but it is always done on their terms and that is the problem.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): I have already said that the matter will be raised among yourselves in the Chief Whips’ Forum and be addressed.

Let us go on to the next motion without notice.

The CHIEF WHIP OF THE MAJORITY PARTY: Perhaps before that, let us acknowledge the omission of the consultation part. We readily admit to that.

                          WORLD REFUGEE DAY


                         (Draft Resolution)

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

That the House –

(1) notes that today, 20 June, marks World Refugee Day;

(2) further notes that in celebrating this day, the peoples of the world commit themselves to redoubling their efforts to foster peace and friendship amongst all humanity;

(3) realises that more still needs to be done to ensure conditions of peace and stability in all countries;

(4) recalls that this year also marks the 55th anniversary of the adoption by the United Nations General Assembly of the Convention relating to the Status of Refugees in 1951, and that this convention sets the parameters on how refugees must be treated and how they should relate to their hosts;

(5) commends our government, security forces, the African Union and other United Nations agencies on their efforts to secure peace on the continent; and

(6) calls on all South Africans to respect human rights and treat refugees with care and compassion.

Agreed to.

                        WORLD BLOOD DONOR DAY


                        (Member’s Statement)

Dr A N LUTHULI (ANC): Chairperson, 14 June has been designated World Blood Donor Day. The ANC joins the international community in observing World Blood Donor Day. This day aims to mobilise healthy individuals to become regular, voluntary, unpaid blood donors, and calls for commitment from the existing voluntary donors to continue to donate regularly to enable the blood transfusion services and partner organisations to provide the highest standards of care at every stage of the transfusion process.

Every pint of blood an individual person donates saves the life of a person involved in a car accident, or a person who has undergone surgery.

We congratulate the SA Blood Transfusion Service on its progress with transformation. The first matter in this regard is the appointment of the first woman CEO, Dr Loyiso Mpuntsha. The second is the abolition of racial classification of blood donors and products.

The ANC calls on all our people to join hands in the effort to save lives by donating blood. Thank you. [Applause.]

   CONFLICT IN SOMALIA AND SOUTH AFRICA’S ROLE IN TROOP DEPLOYMENT


                        (Member’s Statement)

The LEADER OF THE OPPOSITION: Mr Chairman, the DA is deeply concerned by reports, which have appeared very recently, of a catastrophic humanitarian situation developing in Somalia. There is every indication that a major confrontation is brewing between the militia run by the so-called Islamic courts and troops loyal to the transitional government, and there are prospects of an invasion by neighbouring Ethiopia.

While the DA welcomes the decision to lay the groundwork for a possible deployment of peacekeeping troops or missions to Somalia, two critical issues need to be resolved. Firstly, which side of the conflict has the legitimate right to support from outside forces? Secondly, given the apparent deep mistrust that the majority of Somalis have of foreigners, it still needs to be determined whether a foreign force would serve to heighten or lessen the conflict.

The South African government should therefore immediately announce what role, if any, we as a country are to play in the proposed troop deployment, and how advanced the plans are to deploy an African Union peacekeeping mission.

I understand that this was discussed by the AU yesterday, and it would be helpful if Parliament was enlightened by the government as to the resolutions taken by the AU in this regard. Thank you. [Applause.]

        SOUTH AFRICA’S ECONOMIC GROWTH AND UNEMPLOYMENT RATES


                        (Member’s Statement)

Prince N E ZULU (IFP): Hon Chairperson, those engaged in the study of economics have the challenge of advising South Africa why its economic growth does not generate enough jobs in the market.

All manner of tricks have been tried, and are being tried with even more vigour, but sufficient jobs do not result from such trials. The country has a growth rate of between 4% and 5% currently, and the rate of unemployment remains unchanged, or grows even bigger in some provinces. Indeed, it is a challenge.

We are left to speculate on many things. Some people speculate that economic growth is not taking place across all sectors, and therefore some sectors carry the burden of providing jobs in nonperforming sectors. Performing sectors are indeed job creators, no matter how small they are in numbers, but the types of jobs they create are those that attract the use of technology, which does not manifest itself in massive employment. Sometimes such jobs require highly skilled employees to the extent that foreign skills become necessary, and the rate of unemployment remains static.

Many challenges can be further advanced in terms of why the country’s economic growth does not satisfy the job market. It is said that in the past 20 years there has been low or no infrastructure investment in the country. If one casts one’s mind back 20 years, a bleak picture of infrastructure investment reveals itself.

We ask why it is so. We ask if South Africa needs to be more visible and have programmes that are more transparent so that those who are passionate about South Africa’s economic growth translating into jobs and employment may also put their shoulders to the wheel.

We appreciate the efforts of all stakeholders on the economic front … [Time expired.]

    MTN AND CELL C IMPROVE CELLULAR COMMUNICATION IN EASTERN CAPE

                        (Member’s Statement) Mnu N B FIHLA (ANC): Mhlalingaphambili, kwinkqubo yeembizo karhulumente oxhuzula imikhala, okhokelwa ngumbutho wesizwe i-ANC, abantu kwiphondo leMpuma Koloni bathe kutsha nje babika, phakathi kwezikhalazo zabo, ingxaki yokungakwazi ukusebenzisa oonomyayi babo kwiindawo abahlala kuzo.

Ngenxa yoko urhulumente uthe wathetha-thethana neenkampani ezithengisa oonomyayi ukuzikhuthaza ukuba zizame ukuphucula unxibelelwano ngoonomyayi kule ndawo. Sithetha nje ngoku iinkampani i-MTN no-Cell C zibhinqele phezulu, izandla zinodaka, ziphucula unxibelelwano ngoonomyayi kulo mmandla.

Umbutho wesizwe uchulumancile yintsebenziswano ethe yaboniswa zezi nkampani ukusabela ikhwelo labantu bakuthi, kwaye sikhuthaza nezinye iinkampani ukuba zizeke mzekweni. Ndiyabulela. [Kwaqhwatywa.] (Translation of isiXhosa member’s statement follows.)

[Mr N B FIHLA (ANC): Chairperson, during the public hearings of the ANC-led government recently, people in the Eastern Cape complained, among other things, about the inability to use cellphones in their areas.

In order to overcome this problem, the government negotiated with certain cellphone companies to improve their network coverage in these areas. Consequently MTN and Cell C are now actively trying to improve the reception in those areas. The ANC is happy about the co-operation shown by these companies in responding to our people’s call and we encourage other companies to follow suit. Thank you. [Applause.]]

                ACKNOWLEDGEMENT OF PLIGHT OF REFUGEES


                        (Member’s Statement)

Mr S N SWART (ACDP): Chairperson, the ACDP acknowledges the plight of refugees globally on World Refugee Day. For many South Africans a refugee and an illegal immigrant are one and the same. Refugees, like many foreigners, specifically from other African countries, are often subjected to the xenophobia that exists in our country. The ACDP is deeply disturbed by this, considering the fact that so many other African countries opened their doors to South Africans who fled their homes during the apartheid era.

The ACDP does not support any illegal entry into South Africa. We do, however, condemn in the strongest possible terms the ill treatment of refugees and asylum seekers who have been granted this status legally by the South African government.

Last year, when the ACDP asked the Minister of Social Development whether there was a refugee relief fund available to assist refugees, we were informed that there was in fact such a fund, but that it was not active because the process of appointing the board had taken too long owing to the complexity and dynamics involved around issues of gender and stakeholder representation, and other management issues.

The ACDP asks: Is it humane to allow those who are in many cases escaping a terrible fate by coming to South Africa to be dealt another blow owing to issues such as representation? The ACDP calls on the Minister of Social Development to furnish us with further details as to whether the refugee relief fund is fully operational.

Furthermore, we call on government to do all that is possible to assist with the plight of those who are destitute owing to war and other factors in Africa. [Time expired.]

 PUBLIC BUILDINGS TO BE MADE ACCESSIBLE TO PEOPLE WITH DISABILITIES


                        (Member’s Statement)

Mr V C GORE (ID): Hon Chair, in a major step forward for mobility-impaired people and wheelchair users in South Africa the Equality Court in Port Elizabeth has recently ruled that the Minister for Justice and Constitutional Development and the Minister of Public Works have unfairly discriminated against people with disabilities with regard to providing access to buildings.

In the judgment, the magistrate ordered that the building concerned become accessible within a specified time period, and that the national police commissioner and the area commissioner apologise in writing for their attitude towards people with disabilities.

In a reply to a question posed by the ID in this House on Wednesday, 31 August 2005, the Minister of Safety and Security declared that the building concerned was accessible to people with disabilities. The questions that now need to be asked are whether the Minister deliberately misled this House or was misinformed by his officials, and how many other police stations that are supposedly accessible to people with disabilities are in fact not?

This unfortunate situation has highlighted the fact that, in particular, the Minister for Justice and Constitutional Development, the Minister of Public Works and the Minister of Safety and Security are not doing enough with regard to disability discrimination. The ID therefore calls upon these Ministers and the government to seriously reconsider their approach towards people with disabilities and in future to ensure that all public buildings, whether rented or owned, are fully accessible to people with disabilities. I thank you. POOR SERVICE AT MAMELODI HOSPITAL

                        (Member’s Statement) Mr M M S LEKGORO (ANC): Chairperson, the ANC’s parliamentary constituency office in Mamelodi has in the past few months taken steps to probe complaints by members of the community about the poor quality service provided at the Mamelodi hospital.

The parliamentary constituency office found that the service is indeed not satisfactory in a number of areas, such as attending to patients that need emergency treatment, especially during the night. Old age pensioners and other persons of an advanced age have reported that there are times when they wait in queues for long hours to have a simple checkup for blood pressure and to get new prescriptions.

There are reports of repeated occurrences of shortages of medication that is prescribed by doctors in the same hospital. It is also apparent that the payment policy of the hospital is implemented insensitively to the indigent.

We call on the MEC for health in the province and the Mamelodi day hospital administration to pay urgent attention to this situation. Our criticism of the hospital does not suggest that everything is lost; there are many areas in which the hospital provides excellent service.

We also wish to take this opportunity to commend the national and provincial health departments for providing resources for the expansion of the hospital in question. We believe that that will go a long way towards dealing with the health challenges in the community. Thank you. [Applause.]

             BAD CONDITION OF PUBLIC ROADS IN NORTH WEST


                        (Member’s Statement)

Mr I S MFUNDISI (UCDP): Chairperson, much has been said and written about the poor condition of roads in the country, but the greatest culprit in this respect is none other than the North West province.

The condition of the N12, especially between Wolmaransstad and Christiana, leaves much to be desired, to say the least. The Jekyll and Hyde antics of the national Department of Transport and of the provincial department do not help the public image of the government at all. The latter keeps saying that the former is responsible for the upkeep of the roads, and vice versa.

The UCDP maintains that the legitimate objective of a government is to do for a community of people whatever they need done, but cannot do at all in their separate and individual capacities. Roads fall into this category. A community of people cannot be left to maintain a public road.

The number of deaths that have occurred on the N12 in the recent past, particularly between Wolmaransstad and Bloemhof, is a real cause for concern. It is simply a matter of time before litigation is brought against government.

We are aware of claims submitted to the North West provincial department of transport because of damaged tyres and shock absorbers. The complete disregard of the Batho Pele call to the Public Service cannot be countenanced any further. The public needs good roads to ensure that the economy of the country flourishes.

The UCDP calls on the ANC-led government, in both instances, to live up to their contract with the people and make them good roads and a good life, if they are unable to make them better. I thank you. [Applause.]

  PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK


                        (Member’s Statement)

Mr T D LEE (DA): Chairperson, at the weekend four major opposition parties represented in this House, the DA, the IFP, the ACDP and the FF Plus, launched a campaign to end floor-crossing. The campaign was launched because, firstly, we recognise that floor-crossing in its current form betrays the wishes of the electorate and lends itself to bribery and corruption. Secondly, we know that two thirds of South Africans are opposed to floor-crossing; and, thirdly, we would be failing in our duty as public representatives if we ignored the wishes of the electorate.

We therefore urge every member of this House to support the Private Member’s Bill that seeks to remove floor-crossing legislation from the Statute Book. Let us show South Africa that narrow party-political interests will never supersede the public interest in our country. I thank you.

                   PROGRESS ON 2010 FIFA WORLD CUP


                        (Member’s Statement)

Mr M M DIKGACWI (ANC): Chairperson, the ANC is heartened by the confidence Fifa and the broad international football community have displayed towards our country and people. After meeting with the 2010 Local Organising Committee, the Fifa president is quoted as having said that the event to be hosted by our country in four years’ time will generate more money than the German World Cup.

He added that he was pleasantly surprised by the amount of work already done by the LOC. This confirms the information shared with the House by the Minister of Sport and Recreation that South Africa has already met most of the deadlines agreed to with Fifa eight months ahead of time. The Chief Executive Officer of the Local Organising Committee, Danny Jordaan, confirmed that the funding target of R13 billion for the 2010 World Cup, the biggest in Fifa’s history, had already been reached. Major sponsors of the event have already deposited their millions into the Fifa bank account to illustrate their confidence in our ability to organise the event. The event is projected to create approximately 120 000 temporary and permanent jobs.

The ANC calls on all patriots to roll up their sleeves and intensify their efforts to make the coming event a memorable one. Thank you. [Applause.]

JOINT BUDGET COMMITTEE AND EFFECTIVE OVERSIGHT OF GOVERNMENT SPENDING

                        (Member’s Statement)

Mr T E VEZI (IFP): Chair, the Joint Budget Committee has a complex and broad mandate given to it by resolution of Parliament in 2004. The committee is, among other things, mandated to exercise effective oversight over state spending on the consolidated budget, aligning spending outcomes with government priorities and ensuring that there is value-for-money spending by all government departments.

The IFP welcomes the fact that the committee last year held hearings on provincial spending on health, housing and education. We all know that the provinces’ performance in service delivery is determined, to a large extent, by their capacity to spend budget allocations. It is therefore important that the budget committee continues to monitor and oversee provincial spending in conjunction with the Select Committee on Finance in the NCOP.

The IFP, however, is very concerned that some of the challenges facing the committee have not been addressed effectively. Attendance at the meetings of the committee is poor, and this seems not to be treated with the seriousness it deserves. This should be rectified immediately.

We support the move for more interaction with the Portfolio Committee on Finance and the Select Committee on Finance as there is no doubt that this will broaden the knowledge base of members to effectively oversee government spending. I thank you.

             LEARNERSHIP PROGRAMMES IN THE WESTERN CAPE

                        (Member’s Statement)

Mr J D ARENDSE (ANC): Chairperson, the ANC-led government is committed to programmes to train young people through learnerships so that they can gain skills and work experience in order for them to access jobs.

The recent initiative taken by the Western Cape government to train 1 000 young people in various skills is one such programme. The Western Cape government has an amount of R35 million in learnership programmes. The programme was launched on the eve of the 30th anniversary of the 1976 student uprising and in Youth Month. The programme is not only aimed at providing skills but also promises participants sustainable employment after 18 months of intensive training.

The ANC urges all South Africans to embark on similar programmes to give the youth opportunities to make a contribution to our society. I thank you. [Applause.]

 MINISTER OF SAFETY AND SECURITY’S COMMENTS ON CRIME IN SOUTH AFRICA

                        (Member’s Statement)

Mnr R J KING (DA): Agb Voorsitter, die agb Minister van Veiligheid en Sekuriteit begin al meer terugkrabbel na sy skokkende ontkenning van die misdaadsituasie in Suid-Afrika. Na sy hopelose onvanpaste optrede in reaksie op toesprake in sy begrotingspos hier, het hy die volgende dag, steeds betower deur ondeurdagte toejuiging uit eie geledere, homself herhaal in die Nasionale Raad van Provinsies.

Dit was al genoeg bewys dat ons agb Minister hom nie maar net per ongeluk verspreek het en dalk polities ’n ligte “mistykie” gemaak het nie, maar dat inderdaad elke woord wat Minister Charles Nqakula op 1 Junie in die hierdie Raad geuiter het in werklikheid uit sy hart gekom het en uit ware oortuigings spreek.

Om maar net aan die konsekwensies hiervan te dink laat elke wetsgehoorsame mens sidder. Ek wil vir die agb Minister sê om nou in verbystering oor die vloedgolf afgryse en kritiek wat hy ontketen het terug te deins en met flou grappies oor “just a throwaway remark” salf te probeer smeer, sal geen mens oortuig nie.

U sal iets dramaties moet doen, Minister, soos ek reeds in die begrotingspos vir u gesê het. Geen woord wat u verder uiter sal u politieke bas red of u beeld en politieke geloofwaardigheid kan herstel nie. Neem asseblief dit wat u sien en hoor en waarneem ernstig op. Aanvaar dat Suid- Afrika een van die mees gewelddadige lande ter wêreld is en dat misdaad buite beheer is, en tree dienooreenkomstig op. Dit is die minste wat wat enige selfrespekterende land en sy mense met reg van sy Minister van Veiligheid en Sekuriteit kan verwag. Ek dank u. (Translation of Afrikaans member’s statement follows.)

[Mr R J KING (DA): Hon Chairperson, the hon Minister of Safety and Security is increasingly backtracking following his shocking denial of the crime situation in South Africa. After his highly inappropriate behaviour in reaction to speeches during his Budget Vote here, and still mesmerised by ill-considered cheering within his own ranks, he reiterated his statement in the National Council of Provinces the following day.

That was sufficient proof that our hon Minister suffered no accidental slip of the tongue and did not perhaps make a slight political error, but that every word Minister Charles Nqakula uttered in this House on 1 June did in fact come from his heart and that it indicated true conviction.

To simply consider the consequences hereof makes every law-abiding person shudder. I want to tell the hon Minister that to shy away in bewilderment from the wave of horror and criticism he caused and to try and be placating with lame jokes about “just a throwaway remark” will not convince anyone.

You will have to do something dramatic, Minister, as I have already said to you during the Budget Vote. No word you try to utter henceforth will save your political skin or restore your image or political credibility. Please take everything you see and hear and observe seriously. Accept that South Africa is one of the most violent countries in the world and that crime is out of control, and act accordingly. That is the least any self-respecting country and its people can rightly expect of their Minister of Safety and Security. I thank you.] NGUNI CATTLE BREEDING PROJECT IN NORTHERN CAPE

                        (Member’s Statement)

Mrs D G NHLENGETHWA (ANC): Chairperson, the ANC welcomes the allocation of R4 million by the Industrial Development Corporation for the establishment of the Nguni cattle breeding project in the Northern Cape.

The IDC has signed a memorandum of understanding with the Northern Cape department of agriculture and the University of the Free State to foster co- operation between the different stakeholders to ensure the success and sustainability of the project. As part of the project, a number of communities in the province will receive a consignment of 10 heifers and two bulls to make up the new class of the Nguni herd over a period of five years.

The MEC for agriculture and land reform in the Northern Cape, Comrade Tina Joemat-Pettersson, stated that the introduction of the Nguni herds presented the province with new economic opportunities in a sought-after market with an allied clientele.

The ANC believes that this project will stimulate economic growth in the area and will contribute significantly to creating jobs and reducing poverty. I thank you.

            POVERTY ALLEVIATION PROJECT OUTSIDE MAFIKENG


                        (Member’s Statement)

Mme M J J MATSOMELA (ANC): Re le Mokgatlo wa ANC, re itumelela kabelo ya R22 million go tsweletsa lenaneo la ditirelo tsa setšhaba kwa Modimola gaufi le Mafikeng, kwa porofenseng ya Bokone Bophirima. ANC e ne ya re ka ngwaga wa 2002, fa e ne e keteka dingwaga di le 90, ya tshepisa gore mo dingwageng di le 10 tse di latelang, re lebile ngwagakgolo wa go nna teng ga lekgotla la rona, re tla tsepamisa matlho le go oketsa maiteko mo go fokotseng lehuma le tlala.

Kgosi Ronny Seane Tawana wa Modimola o rile fa a tshwaela a re, lenaneo le le fokoditse tlala mo motseng wa rona mme le re tliseditse tshepo le botshelo jo bošwa mo Modimola. Se setla ka go tlholwa ga ditiro di le 419 mmogo le katiso ya morafe, go fa batho kitso le bokgoni tseo di neng di se teng. Seno se tlaa ba thusa go bona ditiro mo isagong.

Re le ANC, re sa boeletsa maikano a rona a go dira le setšhaba sa etsho, go tiisa dikgolagano gareng ga Maaforika Borwa le go netefatsa gore batho ba tshwaragane le puso mo go tliseng botshelo jo bo botoka go botlhe. Ke a leboga. [Legofi.] (Translation of Setswana member’s statement follows.)

[Ms M J J MATSOMELA (ANC): As the ANC, we appreciate the R22 million fund allocated to complete the public service programmes in Modimola near Mafikeng in the North West province. In 2002 when the ANC was celebrating its 90th anniversary, it promised that in the next 10 years it would focus on reducing poverty and hunger.

In his comment, Chief Ronny Seane Tawana of Modimola commended the programme for reducing hunger and bringing hope and a better life for all in our village. This was as a result of 419 jobs created together with training, which gave people knowledge and skills that are so much needed. This will help them to get employment in the near future.

As the ANC, we are recommitting ourselves to serve our people, to strengthen unity among South Africans and to ensure that they work together with government to ensure a better life for all. Thank you. [Applause.]]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): That was the last statement we have time for this afternoon.

                     UNPARLIAMENTARY IMPLICATION

                              (Ruling)

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon members! Mr Gore in his statement asked the question whether the Minister deliberately misled the House. The implication that the Minister deliberately misled the House is not acceptable as it reflects on the integrity of a member of this House. A word or expression is equally unparliamentary when it is put in the form of a question. I therefore request Mr Gore to withdraw the implication that he made that the Minister deliberately misled the House.

Mr V C GORE: Hon Chair, I withdraw the comment.

                            JOB CREATION
                        RESURFACING OF ROADS
                REPORT OF THE JOINT BUDGET COMMITTEE

                        (Minister’s Response)

The MINISTER OF FINANCE: Chair, I would like to respond to three of the statements, the first being by the hon Prince Zulu, the second by the member from the UCDP, and the third by the hon Vezi. I’m sorry, but I didn’t see who it was from the UCDP as I was writing, so please assist me as we proceed.

Prince Zulu raised the question relating to job creation in the economy. Firstly, it is very important that we, in the House, never propagate untruths about the economy, because the economy in the year to September created just over 630 000 new jobs. That growth is larger than the growth of the population. It is, in fact, slightly larger than economic growth as well. It is not that the economy is not creating jobs; it cannot be that there is jobless growth in the economy. What is an issue is that you are dealing with a huge backlog coming over a very long period.

The other point that the hon Vezi raised is that not all sectors will respond equally, and I think that that is correct. But we must understand that as jobs move from one sector to the other - clothing and textile jobs are increasingly moving to countries like China and that is a global phenomenon - we need to be there and ready, ensuring that we can create jobs in other sectors.

A big, big problem in our economy is that the skills base coming through the schooling system, after years of neglect, does not allow for rapid absorption into the economy and that is the big, big problem that confronts us. That is why Asgisa has such a strong focus on Jipsa to ensure that we can recruit the skills, but, more importantly, that we can grow our own skills.

In respect of the second issue, with regard to the road between Wolmaransstad and Bloemhof, the N12, one of the problems is that road reconstruction is sometimes held up by all manner of processes. In the North West of the country generally - and, I think, it would cover that area, but it would also cover areas even towards Upington - there were very heavy rains this year and the number of potholes has actually increased quite tremendously.

I am advised by the National Roads Agency that the battle that confronts them is whether it’s worth just resurfacing the road or whether the road has to be rebuilt, and rebuilding roads requires that they must go out to tender for design and then for construction. So sometimes these processes are held up unnecessarily. We are either going to have those kinds of processes, for which we can then properly account for public finances, or we are going to run ourselves into difficulties. It is a timing issue with some of these things. I think that, very importantly, in that part of the world, the very heavy rains in March and April of this year have caused untold havoc to the road infrastructure.

I also appreciate the fact that the hon Vezi responded to the report of the Joint Budget Committee. Of course I am saddened by his comments about the poor attendance of members at the Joint Budget Committee, and let me explain why. If you look at the report of the Joint Budget Committee and look in particular at the approach of the Select Committee on Finance, led by the hon Ralane, what is clear is that Parliament is exercising its oversight role. It says:

We have received your quarterly reports in terms of section 32 of the PFMA. In the case of the most recent report of the Joint Budget Committee, it is the third and fourth quarterly reports. It goes on to say:

We are unhappy about the following issues. Kindly explain.

That is Parliament at its very best, exercising its oversight responsibility. And when members of Parliament are then less than diligent in the exercise of their responsibilities, I think it leaves much to be desired. That is something that we clearly must address, because the legislation gives the power to Parliament, constructs the bridge for accountability and, if it’s not being used, we in the executive can stick our hands in our pockets, whistle and walk away. We plead with Parliament then in the same spirit as the hon Vezi does: use the power that the legislation gives you. Thank you, Chair. [Applause.]

   CONFLICT IN SOMALIA AND SOUTH AFRICA’S ROLE IN TROOP DEPLOYMENT


                        (Minister’s Response)

The MINISTER OF DEFENCE: Chairperson, with regard to the matter of Somalia, I think it is important that we must just remember the historical context in that this is one of the so-called failed states that resulted during the closing years of the Cold War.

Following that, the East African region of nations invited a number of the various formations that were at war with each other inside Somalia to engage in negotiations so that they could build the foundations to reincorporate and unite the people. That action was guided by the fact that the OAU and the African Union have persisted with the approach that colonial boundaries should be maintained because if one does not stick to them, we could unleash incredible conflicts everywhere on the continent. So the approach of the African Union continues to be informed by the idea that there is one Somalia.

Now the majority of those formations that were at war signed an agreement that produced the transitional government in Kenya, and the AU continues to support that effort. The return therefore of the transitional government was and is supported by the AU with the understanding that that transitional government will continue with the efforts of further uniting and consolidating the nation of Somalis.

Nevertheless, as in the case of Burundi and in the DRC, there are always one or two elements that will not be attracted to the idea of peace, and this is the grouping that has declared a separatist position of Somaliland. The AU - and we, of course, are bound as part of the AU - supports the idea of Somalia. Therefore the transitional government is a body that really deserves our support. The media may well report …

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon Minister, I can allow you a few more seconds’ grace.

The MINISTER OF DEFENCE: Thank you, Chair. This is an education class and I don’t know what to do with this matter. [Laughter.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! The Minister is going to continue.

The MINISTER OF DEFENCE: It may well be that reports suggest that there is an imminent attack and so on. That’s not correct. Ethiopia is cautiously guarding its eastern borders, but there is no intention indicated anywhere either in the AU or in the African Commission that Ethiopia is planning to attack Somalia. In any event, as supporters with us of the transitional government, they would find themselves attacking a transitional government that we are supporting in order to put it in place.

With regard to the position of the SA National Defence Force, South Africa, as part of SADC and as part of the Peace and Security Committee of the AU, can only intervene in Somalia that is a decision of the African Union. We have no independent decision in terms of this. We don’t act as an unguided missile and just decide anyhow that we want to go there or whatever. But, indeed, if there were a call on the AU, the African Standby Force, the SADC brigade, would have to be mobilised to support the efforts of the African Union to keep peace there.

  PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK
 PUBLIC BUILDINGS TO BE MADE ACCESSIBLE TO PEOPLE WITH DISABILITIES
 MINISTER OF SAFETY AND SECURITY’S COMMENTS ON CRIME IN SOUTH AFRICA

                        (Minister’s Response)

The MINISTER IN THE PRESIDENCY: Chairperson, first of all with the hon Lee, let me just say this: It’s always best to listen. The President of the Republic of South Africa, who is also the President of the ANC, said in this House that Parliament should discuss the issue of floor-crossing. Parliament should discuss this issue, but if you have made up your mind that floor-crossing is a betrayal, and then say we must support the Private Member’s Bill, it means you have stopped listening.

So, what would be the point of the ANC engaging you in a discussion if you have already made up your mind? [Interjections.] So, don’t make up your mind now. Enter into a discussion. At the end of the discussion, Parliament will produce a report. Okay? So, don’t betray your own intelligence. [Interjections.]

On the second point: Mr Gore, I want to agree with you. We do face – and I say this as the Minister responsible for people with disabilities - a serious challenge with respect to ensuring that public buildings are more accessible. But, you know what? You yourself must become more active in the disability movement. Don’t just sit here in this House. I don’t see you when the disability movement is active. This is because we can’t do this on our own. We’ve got to do this in partnership.

Secondly, become more active in the portfolio committee. That is also set up to deal with these issues, and I don’t see you there either. So, instead of coming here and raising issues, also use the processes in Parliament that you have to ensure that all of us work together to make sure that we stick to government policies with respect to this particular issue. [Applause.]

Concerning the last question, the Minister of Safety and Security has said previously and he said so now in an interview again that when he said what he said, he was referring to three Members of Parliament. [Interjections.] Just listen. You know what? I don’t know what your parents do, but how did you grow up? Were you always so rude to your parents? [Laughter.] So, just listen, okay?

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon, Minister, you are running out of time.

The MINISTER IN THE PRESIDENCY: Well, you must control them too. They must not be rude if they want us to answer. [Interjections.] The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please proceed, hon Minister. Order!

Mr W J SEREMANE: Chairperson, I rise on a point of order. Is it really parliamentary to be mentioning people’s parents here, when they have nothing to do with this? [Interjections.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please take your seat, hon Seremane. That’s not a point of order. Hon Minister, could you wrap up your response?

The MINISTER IN THE PRESIDENCY: I don’t know how he thought he came into this world. Maybe fell he off a tree if he didn’t have parents. [Laughter.] [Interjections.] Or maybe somebody bit on an apple and you came out. [Laughter.] So, the point I’m making … [Interjections.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Order! [Interjections.] Order! Hon Minister, your time has expired.

The MINISTER IN THE PRESIDENCY: When you joined the DA from the PAC, did you change politically and ideologically? [Interjections.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon Minister, your time has expired. Order! Just give me a minute, hon Mulder.

The MINISTER IN THE PRESIDENCY: No, the last time I said something to him he never stopped crying.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon Minister Pahad, your time has expired, Sir. [Laughter.] [Interjections.] Order, please!

The MINISTER IN THE PRESIDENCY: No, Im going to finish this statement now and say …

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon Minister! [Laughter.]

The MINISTER IN THE PRESIDENCY: Chairperson, thank you very much, but hon Seremane must explain politically and ideologically how he made the jump. [Interjections.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Order! [Interjections.] Order, hon members! [Interjections.] Hon members, let me appeal to you: I could not be heard at all over the intercom system. It’s ridiculous. Hon Mulder?

Dr C P MULDER: Chairperson, I just wanted to say that, with all due respect, the Minister was going to react on a very serious matter with regard to the remarks made by the Minister of Safety and Security, and those backbenchers didn’t help us in getting the answer. We didn’t get it at all. [Interjections.]

The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, could you please ask the hon Seremane to contain himself? He is losing control of himself. [Laughter.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! No, no! No response. We are proceeding with responses from the Ministers. [Interjections.] Order!

                   PROGRESS ON 2010 FIFA WORLD CUP
  PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK

                        (Minister’s Response)

The MINISTER OF SPORT AND RECREATION: Chairperson, I wanted to just reaffirm what was said by the hon member about the need for ourselves, first and foremost, to do away with the Afropessimism that continues to be displayed outside these Chambers. We are now told about a spurious event in term of which Fifa instructed South Africa to change the names of some stadia.

My last meeting with the president and the secretary of Fifa was on 8 June. There has been no such indication, and there can be no such indication. Rather, changes regarding the copyrights of hosting the World Cup were already agreed to in 2004. These do not include changing the names of the stadia. So, I only want to urge our compatriots to begin to show self- confidence, the same confidence that the world is beginning to have in us.

The SABC started broadcasting in Germany last week already, and you should have seen the applause of the people in the stadium when they heard this South African accent. They all rose up in excitement that South Africa was participating already in the World Cup. [Applause.] That is the spirit that we want to entrench.

I cannot sit down without agreeing with the Minister in the Presidency on assisting members of this House as they make up their minds on floor- crossing. I suppose I am entitled to do that, seeing that I was the Chief Whip here in 1995 when the idea of floor-crossing came up, not from this side of the House but from a Private Member’s Bill sponsored by Mr Eglin of that side of the House. So, as we come full circle and as we make up our minds on how to deal with this circle, I thought we should remind ourselves of the history of floor-crossing. Thank you very much, Chairperson. [Applause.]

 UNPARLIAMENTARY REMARKS MADE DURING SAFETY AND SECURITY BUDGET VOTE


                              (Ruling)

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Before we proceed with the first motion on the Order Paper, I would like to give the following ruling. During Declarations of Vote on the Safety and Security Budget Vote on 13 June, the hon Adv T M Masutha raised a point of order in regard to remarks made by the hon Mr P J Groenewald in his contribution on behalf of the FF Plus. The hon Minister of Education subsequently also rose on a point of order with regard to Mr Groenewald’s remarks.

I undertook to study the Hansard and return to the House with a ruling. Having now had the opportunity to study the Hansard, I rule as follows: Mr Groenewald said in Afrikaans, with reference to the Minister of Safety and Security:

You are undermining democracy in South Africa, and if you undermine democracy, you are nothing other than a political criminal. Your remarks clearly indicate that you are a racist; you are nothing more than that.

Mr Groenewald then repeats his statement by saying:

I said that the hon Minister is a racist and I stand by that, because it is the truth.

As correctly pointed out by the hon Minister of Education, there have been various rulings in this House on calling another member a racist, and it is unparliamentary. As early as 1998, the former Speaker ruled that it is never parliamentary to call another member a racist, regardless of the context.

Similarly, the rules prohibit members from casting aspersions on the integrity of, or imputing improper motives to other members. By calling the hon Minister a political criminal, Mr Groenewald did exactly that. Such accusations seriously undermine members in the performance of their duties and they also undermine the image and effectiveness of Parliament itself to function as the Constitution intends.

I now ask Mr Groenewald to withdraw both offensive remarks, namely that the Minister is a racist and a political criminal. Hon Groenewald?

Mr P J GROENEWALD: Hon Chair, may I request a fair chance to address you on this issue? [Interjections.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, I am requesting a withdrawal from you.

Mnr P J GROENEWALD: Agb Voorsitter, ek wil vanuit die staanspoor sê ek respekteer die integriteit van die Parlement, soos wat daar van alle parlementslede verwag word, by uitstek van ’n Minister, om hierdie Huis se integriteit te respekteer. (Translation of Afrikaans paragraph follows.)

[Mr P J GROENEWALD: Hon Chairperson, from the outset I would like to say that I respect the integrity of Parliament, as it is expected of all Members of Parliament, particularly of a Minister, to respect the integrity of this House.]

The CHIEF WHIP OF THE MAJORITY PARTY: I rise on a point of order, Chairperson. Please let us not allow an opportunity for a speech. The member either withdraws or refuses to withdraw.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon Groenewald, I am requesting you to withdraw the offensive remarks.

Mr P J GROENEWALD: Agb Voorsitter, soos wat u my aangehaal het dat ek die waarheid gepraat het, staan ek by die waarheid. Ek kan nie die waarheid terugtrek nie. Ek weier om dit terug te trek. [Hon Chairperson, as you have quoted me as I spoke the truth, I stand by the truth. I cannot withdraw the truth. I refuse to withdraw it.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, if you are refusing to withdraw the remarks, in terms of Rule 51, I ask you to withdraw from the House. [Interjections.] Order!

The member thereupon withdrew.

SUSPENSION OF RULE 253(1) REGARDING SECOND SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL

                         (Draft Resolution)

The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move the motion printed in my name on the Order Paper, as follows:

That Rule 253(1), which provides inter alia that the debate on the Second Reading of a Bill may not commence before at least three working days have elapsed since the committee’s report was tabled, be suspended for the purposes of conducting the Second Reading debate on Second Small Business Tax Amnesty and Amendment of Taxation Laws [B 15 – 2006] (National Assembly – sec 75) today.

Agreed to.

   SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL

                       (First Reading debate)

Ms J L FUBBS: Hon Chairperson, hon members of this House, comrades, colleagues and my fellow countrymen, the Small Business Tax Amnesty and Amendment of Taxation Laws Bill is more than just any Bill that we have brought before this House. It is a Bill that deepens our democracy, because it deals directly with the democratisation of the tax regime.

Further than that, it also deals with the redistribution of the gains that we have made, because it is only through a fair, a well- balanced and an equitable taxation system that we are able to gain and increase our revenues and, in that manner, contribute towards the development and growth of our economy.

Small businesses play a key role in stimulating economic activity, job creation and poverty alleviation; indeed, the very general principles of living standards are improved. So many of our businesses have been marginalised historically, and so many of them excluded from the economic mainstream. When we look around at small houses, at shacks on the streets and on the side of the road, we see so many small enterprises operating.

This Bill offers people that opportunity, that generous opportunity, as long as they are not earning, or their turnover does not exceed R10 million a year, to come back into the greater economic South Africa from which they have been excluded for so long, because as long as they are excluded they will not benefit fully within the economy.

But then there are also those small businesses that have not been excluded from the mainstream, that operate from the garages of suburbs such as where I come from – Sandringham in the Sandton part of the Johannesburg Metro.

In other parts of the country they operate almost economically underground, and the reason for their exclusion from the tax system is one of choice, choosing not to actually contribute to tax. People who fall into that category I regard as refugees from the human spirit - attitudinal aliens. They have made themselves attitudinal aliens from our economic democracy. My appeal to such refugees is: take the opportunity now to regularise and normalise your taxation.

As I said to begin with, this is the democratising of the tax regime - it broadens the tax base, it facilitates the normalisation of tax affairs of small businesses, and it also increases and improves the culture of tax compliance. A culture of compliance will help us expand the public purse and so contribute to the redistributive thrust of the revenue itself.

I know that the main contents of the Bill have received much media coverage, and indeed in this very House the Minister spoke about the contribution this Bill would make. What I would like to just talk about for a moment are the political considerations. The task of democratising this tax regime has been a major undertaking, which has been under way for a number of years. This Bill simply seeks to continue that tax reform with a special focus on small business.

Indeed, this is not the first time that amnesty has been offered. The first time that that was done for those trying to avoid tax compliance, or those who had no choice due to the historical situation, was in the case of offshore funds being held illegally. As you know, what we received in revenue there certainly has contributed to our redistributive thrust. It was, indeed, highly successful. But what we also need to do now, of course, when we do succeed in these measures, is to have the Minister come back and report to Parliament. Indeed, the Finance committee was very happy to see that this was not just a conversational commitment, but that it has been built into the Bill itself.

In fact, the success of the amnesty must be reported to Parliament, and these details will include the number of applications received, the number of applications approved and denied, the number of new taxpayer registrations per type, and all amnesty levies payable. I think that that indicates, once again, the commitment of the Minister to parliamentary oversight and the recognition of how much this leads to accountability.

When one talks and thinks of taxation itself, one is often reminded of biblical stories about taxation. [Interjections.] That’s right. Well, I must tell you, through the Chairperson, that the first house I bought I found out had been used as a church, and I seriously thought of becoming a member of the cloth so that I could also hold out my soup plate for a collection. However, I’ve chosen to earn my wages in a different manner.

Indeed, it was very interesting to realise that during the biblical times people then collected taxes for the very purpose of also trying to improve the quality of people’s lives. However, what became very seriously a matter of commission was that after the Napoleonic wars tax was collected largely to defray expenditure of a military nature. More recently in Britain, tax was largely imposed to ensure that, indeed, the wealthy retained their income and the poor or the lower middle classes lost theirs.

The difference in terms of the tax regime in South Africa is that it does seek to equitably gather the taxes, but also, of course, to redistribute them. South Africa is a developmental state, and in a developmental state it is very important that equity and development go hand in hand.

Another area which we must welcome on the part of the Ministry is that it sought through wide consultation the views of people on the ground, in business, in Parliament and in other areas as well. This led to a series of revisions to ensure that the Small Business Tax Amnesty and Amendment of Taxation Laws Bill would achieve its goal.

Of course, this is a very generous amnesty. This generous amnesty actually says, “By the way, even if you have been ducking and diving for several years, we are not going to take that into account. What we are going to take into account is the last financial year and up to R10 million turnover.” Secondly, the one-off levy is going to be cut from 10% to 5% in the Bill itself, and then there will be a sliding scale.

Now, National Treasury is appealing to all small businesses to come forward that have found themselves outside the net. But if small businesses don’t come forward, they can expect the full wrath of the law in this regard. Taxi owners are also advised to come forward so that they too can be part of the taxi recapitalisation process.

This tax amnesty is a message of hope that tax continues to be used as a redistributive instrument for change and, certainly, we accept that small businesses, the engine of a developmental economy - which is one in which your core capital is people and, as we know, small businesses employ more people than larger businesses - can become and are the engine of South Africa’s economy. The ANC supports this Bill. Thank you, hon Chairperson. [Applause.]

Dr S M VAN DYK: Agb Speaker, Minister Manuel het ’n belastingamnestie vir die kleinsakeondernemings in die 2006 begroting aangekondig. Behalwe vir die amptelike voordele, sal dit ook Statistieke SA se data meer volledig maak vir ekonomiese beplanning; meebring dat die werklike BBP meer akkuraat bereken word; duidelikheid oor werkskepping meebring; die Minister se fiskale beplanning beter laat sinkroniseer met die ekonomiese werklikhede en bedrog voorkom waar die werkgewer tans werknemersbelasting verhaal, maar nie aan die ontvanger oorbetaal nie.

Die DA wil sekere struikelblokke uitwys wat die goeie bedoelings van amnestie in die wiele kan ry. Daar is geen direkte aansporingsmaatreëls vir amnestie-aansoekers nie. Inteendeel, deur te registreer as ’n belastingpligtige, sal daar ’n onmiddellike las wees vir die applikant in terme van arbeidswette waaraan voldoen moet word, wat verdere kostes inhou. Navorsing toon dat die informele sektor belasting sien as die grootste nadeel van registrasie en vind 24% van die informele sektor hulleself veiliger buite die belastingnet.

Die voorskrifte vir amnestie is te akademies en besigheidsonvriendelik. Indien die volle amnestieheffing nie betaal word binne ’n gegewe tyd nie, of die applikant nie alle inligting openbaar of verkeerde inligting verstrek, kan amnestie geweier word. Dit wil sê ’n amnestie aansoeker wat onervare is met al die voorskrifte van belastingopgawes kan oortredings per abuis maak, en dit skrik mense af.

Die amnestietydperk van 1 Augustus vanjaar tot einde Mei volgende jaar is te kort, omdat dit ’n geruime tyd sal neem voordat die volle konsekwensies van amnestie by die kleinsakeondernemings sal uitkom. Amnestie-aansoekers het geen kultuur van boekhouding of die nakoming van belastingprosedures nie en sal hulle ’n administratiewe eenheid moet skep terwyl dit ook tyd sal neem om dokumentasie en inligting bymekaar te kry.

Die huidige belastingvoorskrifte vir kleinsakeondernemings is te tegnies en ingewikkeld, wat ook dien as rede dat baie entiteite tans nog buite die belastingnet bly. Tyd is nodig vir behoorlike opvoeding ten opsigte van al die soorte belasting wat uiteindelik betaal sal moet word.

Die staat onderneem ’n taxi-herkapitaliseringsprogram waar die staat ’n R50 000 slopingstoelaag per taxi verleen, maar om daarvoor te kwalifiseer moet taxi-eienaars ’n belastingsertifikaat toon. Gegewe die amnestieheffing en belasting wat dan betaal sal moet word, tesame met ’n nuwe motorpremie, sal taxi-eienaars eerder buite die net bly.

Die vraag is ook hoe lank dit gaan neem om amnestie aansoeke te verwerk. Deur ’n aansoek in te dien word amnestie voorlopig verleen, maar indien die applikant nie spoedig ’n antwoord ontvang nie, kan hy die volgende jaar se belastingopgawes weerhou, wat verdere probleme skep.

Die moontlikheid dat amnestie geweier word kan ook aansoekers afskrik. Onvolledige aansoeke kan die resultaat wees van onkunde om belastingopgawes behoorlik te voltooi. Indien die ontvanger navrae rig vir meer inligting, kan amnestie dan geweier word. Dan beteken dit dat die ontvanger ook vyf vorige jare se uitstaande belasting kan eis, plus rente, plus boetes, plus nog moontlik strafregtelike vervolging ook kan instel, en dit skrik mense af.

Gegewe die huidige kleiner winsmarge van kleinsakeondernemings, behoort geen heffings op die belasbare inkomste van die 2006-jaar gehef te word as vereiste vir amnestie nie. Die argument dat geen heffing ander belastingbetalers sal benadeel, hou nie water nie. Spesiale rekenkundige hulp behoort aan amnestie-aansoekers gegee te word om die belastingadministrasie te vergemaklik.

Die jongste wysigings wat die Minister verlede week aangekondig het kan lei tot verwarring. Die wysigings behoort tog duidelik en vinnig bemark te word om foutiewe aansoek vroegtydig te vermy. Selfs in een van die Sondagkoerante eergister is verkeerdelik na die amnestietydperk verwys as 1 April 2004, in plaas van einde Februarie 2005.

Ten slotte, steun die DA die Minister in sy poging om alle potensiële belastingpligtiges wel uiteindelik in die belastingnet te kry. Die DA steun die wet. [Applous.] (Translation of Afrikaans speech follows.)

[Dr S M VAN DYK: Hon Speaker, in his Budget Speech of 2006 Minister Manuel announced a tax amnesty for small businesses. Besides the official advantages, it will also ensure that the data of Statistics SA is more complete for economic planning; result in the actual GDP being determined more accurately; provide more clarity regarding job creation; result in better synchronization of the Minister’s fiscal planning with the economic realities, and prevent fraud committed by the employer who currently deducts tax from the employee but fails to pay it over to the Receiver.

The DA would like to point out certain obstacles that could hamper the good intentions of the amnesty. There are no direct incentives for amnesty seekers. On the contrary, by registering as a taxpayer there will be an immediate burden on the applicant in terms of the labour laws which have to be adhered to, which involves further costs. Research has shown that the informal sector regards tax as the biggest disadvantage of registering and that 24% of the informal sector feel safer outside the tax net.

The regulations for amnesty are too academic and business-unfriendly. If the amnesty levy is not paid in full within the prescribed period, or the applicant fails to disclose all relevant information or provides incorrect information, amnesty can be denied. That means that an amnesty seeker who is inexperienced in terms of all the regulations regarding tax forms could inadvertently default, and that drives people away. The amnesty period from 1 August this year to the end of May next year is too short as it will take a considerable time for the full ramifications of amnesty to reach small businesses. Amnesty seekers do not have a culture of bookkeeping or completing tax procedures. They will have to create an administrative unit, whilst it will also take time to gather documentation and information.

The current tax regulations for small businesses are far too technical and complicated, which is another reason why many entities currently still remain outside the tax net. Time is required for proper education relating to all the types of taxes to be paid ultimately.

The state has undertaken the taxi recapitalisation programme in which the state provides a scrapping fee of R50 000 per taxi, but in order to qualify for this taxi owners have to produce tax certificates. Given the amnesty levy and tax that will then have to be paid, together with a new car premium, taxi owners would rather stay outside the tax net.

The question is also how long it will take to process the amnesty applications. By submitting an application, amnesty is granted provisionally, but unless the applicant receives a speedy reply, he may withhold the following year’s tax return, which creates further problems.

The possibility that amnesty could be denied, could further scare off applicants. Incomplete application forms could be the result of a lack of knowledge with regard to completing tax forms properly. In the event of the Receiver requesting further information, amnesty could then be denied. That means that the Receiver can demand outstanding taxes for the past five years, plus interest, plus fines, and possibly lay criminal charges as well, and that scares people off.

Given the current smaller profit margins of small businesses, no tax should be levied on the taxable income for the year 2006 as a prerequisite for amnesty. The argument that no levies will disadvantage other taxpayers, does not hold water. Special accounting assistance should be given to amnesty seekers in order to facilitate tax administration.

The latest amendments that were announced by the Minister last week, could lead to confusion. Surely the amendments should be marketed explicitly and promptly to prevent erroneous applications timeously. Even one of the Sunday newspapers two days ago referred in error to the amnesty date as being 1 April 2004, instead of the end of February 2005.

In conclusion, the DA supports the Minister in his efforts eventually to secure all potential taxpayers within the tax net. The DA supports the Act. [Applause.]] Mr T E VEZI: Madam Deputy Speaker, the main purpose of this Bill is to provide a small business tax amnesty in respect of the voluntary disclosure of a failure to comply with the applicable tax laws. The Bill also amends various tax laws to provide for enactment of announcements made by the Minister of Finance during his 2006 Budget Speech.

Many small businesses operating informally were excluded from the economic mainstream, thus remaining outside of the tax system. These businesses are now keen to regularise their tax affairs, but an obstacle is their past noncompliance and the resultant potential tax liabilities, penalties and interest.

It is the IFP’s wish that there be no problems of violence when the taxi industry is also drawn into the net. We say this because there are still unresolved issues in the taxi industry. Our concern is that while the Minister and his team bring millions into the coffers, organised crime is also busy drawing money out. The war against poverty must be waged on all fronts, we agree. Corruption, as the President has often pointed out, is a very worrying factor.

While we support the President in his peace efforts, we are alarmed by the number of so-called asylum seekers who are involved in organised crime in this country. The Department of Home Affairs needs to be assisted by all Members of Parliament in trying to close the loopholes which are being opened. The IFP supports this Bill. I thank you. [Time expired.]

Mr A HARDING: Madam Deputy Speaker, the ID believes that this Bill will go a long way in broadening the tax base, normalising the tax affairs of small businesses and improving the culture of compliance. Most of the businesses affected by this Bill operate informally, and have been historically marginalised and excluded from the economic mainstream. The ID supports this piece of legislation.

However, we do have some concerns. We believe that the turnover limit of R10 million should be increased to R14 million to be in line with the new threshold limit set for business tax relief. This will result in more businesses claiming amnesty and will ultimately bring more taxpayers into the tax net.

Another concern we feel must be addressed are the implications in terms of the Financial Intelligence Centre Act, and we suggest that a specific Fica exemption be granted as one of the provisions of the amnesty legislation.

The prohibition of carrying forward losses in previous years is problematic, considering that many of these businesses operate on small margins, but we acknowledge that a blanket provision may also lead to abuse.

While many small businesses may be eager to use this opportunity to regularise their tax affairs, it is true that a lot of them will not be able to cope with our complex tax legislation. This will increase their dependence on tax advisers and practitioners, and the resultant cost of tax compliance will increase their operational costs.

We also suggest that the returns and the frequency will add to tax compliance and that the length, relevance and quantity of information be considered for small businesses. The ID supports this Bill. Thank you.

Mr S N SWART: Madam Deputy Speaker, hon Minister, the ACDP supported the tax amnesty for offshore funds held illegally and, similarly, supports the provisions of this Bill that allows tax evaders to regularise their tax affairs.

We believe it is long overdue and will bring a large number of tax offenders into the net, thus increasing the spread of taxpayers. This, in the long term, should result, we trust, hon Minister, in a reduction of the tax rates.

The ACDP encourages all small businesses that have not regularised their tax affairs to make use of the generous provisions of this amnesty. This is a once-off offer to come clean that should not be missed. In the words of Rhodes University tax professor, Professor Lester, “with the stroke of the pen, you will be transformed from a tax leper to a fine, upstanding member of society”. If only it were that simple to become such an upstanding member of society. However, at the very least, as far as one’s tax affairs are concerned, one can become legal and not have to be wary of tax inspectors. The ACDP will support this Bill. I thank you.

Mr R B BHOOLA: Deputy Speaker, the MF views the small business tax amnesty as a sure way to bring small businesses in line with Sars requirements.

The MF hopes that small businesses will seize this opportunity, instead of facing heavy penalties. This should normalise the tax compliance culture. We do, however, feel that there are many businesses that have been registered and face discrepancies, which they have been penalised for. In all fairness, we suggest amnesty in this regard too, which will further normalise tax compliance.

In view of the tax amnesty relief, the MF finds all provisions well devised to administer the process. As a separate unit at Sars will handle the small business tax amnesty applications, enquiry is extended into transparency, accountability and oversight of this process.

The amendment of tax laws has been adequately dealt with. The MF supports the Small Business Tax Amnesty and Amendment of Taxation Laws Bill.

Mnu S E ASIYA: Sekela Somlomo ohloniphekileyo, baphathiswa abahloniphekileyo, malungu ale Ndlu ahloniphekileyo nakumaqabane. Ndibulela elithuba ndilinikiweyo lokwenza le ntetho kule Ndlu nombandela woxolelo kwirhafu. Olu xolelo kwirhafu lwenzeka kanye ngethuba apho sibhiyozela iminyaka engama-30 apho amaBhulu asePitoli agwinta ulutsha eSoweto, kwaMashu, eNew Brighton eBhayi nakwaLanga ngokunjalo.

Ikomishoni yababuthi berhafu, ngamava ayo okusebenzisana noosomashishini abakhasayo nabancinci, kufunyaniswe ukuba uninzi lwabo ababhalisanga okanye abandandalazisanga inkcukacha zabo malunga nalo mthetho uthiwe thaca kule ndlu. Sibongoza amalungu ale Ndlu ukuba awamkele lo mthetho njengomthetho ozakwenza oosomashishi babhalise kwikomishoni ngaphandle kwedyudyu noloyiko lokungena emgibeni wokujeziswa. Kukho izigrogriso zokuba wakubhalisa uzakujeziswa kuthinjwe yonke into othe wayizuza ngaphambili. Ndifuna ukuthi ngamampunge lawo.

Mandigxininise ukuba eli cham alinakuxhanyulwa ngabo baneencwadi ezisaphengululwayo nezinekhwiniba. Xa ubani enengeniso engama-35 amawaka erandi akazukuhlawula nondancama kwirhafu kweli lizwe. Xa unengeniso ingaphezu kwama-35 amawaka ubani wohlawula ipesenti ezimbini kwirhafu. Oosomashishini bacelwa ukuba bagxalathelane benze imitsi yenkawu ukusebenzisa eli thuba.

Esi sisigaba sesibini kuxolelo lwerhafu lusenziwa ngurhulumente olawulwa yinkongolo. Esokuqala isigaba kwakunikwe ithuba oosomashishini abarhweba ngaphandle kwemida yeli. Abaninzi balithabatha eli thuba beza ngaphambili. Lo nto yenza ukuba kubekho uchatha kwingxowa kazwelonke.

Xa ndiphawula ngerhafu ndifuna ukuthi thaca kwasekuqaleni apha kule Ndlu ihloniphekileyo ukuba wonke ubani okanye usomashishini kuyimfuneko ukuba ahlawule irhafu nokuba yeyaluphina uhlobo. Kule njika langa intetho izakujolisa kuxolelo kwirhafu oluthe lwacetywa lwathiwa thaca kule ndlu nakwikomiti. Siye sayihla amahlongwane savumelana ngamxhelo mnye sasamkela isiphakamiso eso.

Abanye oosomashishi ncakasane babephakamisa ukuba lunyuswe oluxolelo kwirhafu luye kuma kwizigidi zamashumi amawaka erandi. Ikomiti nesebe kunye nekomishoni yababuthi berhafu sithi le nyhweba yenzelwa ukuba ixhanyulwe ngoosomashishini abancinci hayi oongxowankulu. Xa uninzi lwabantu noosomashishi bethobela umthetho bahlawule irhafu lonto ithi iinkqubo zophuhliso zikarhulumente wesizwe aziyi kusilela koko ziyakwanda.

Kule veki iphelileyo besibhiyozela umhla we-16 kweyeSilimela 1976. A baninzi bebezama ukucinga ukuba babesenza ntoni kwaye kwakusenzeka ntoni kanene ngaloo mhla. Ingaba sikhe sathatha umzuzwana sicinga ngobume berhafu ngela xesha. Ngaloo nyaka irhafu yookopolotyeni ibingama-43 ekhulwini. Irhafu ebihlawulwa ngabantu abamivuzo iphezulu ibingama-66 ekhulwini.

Urhulumente okhokhelwa ngumbutho wesizwe i-ANC, ongafuni kujongana ngezikhondo zamehlo noosomashishini abancinci nabakhulu uye weza nale nyhweba yoxolelo kwirhafu ukuze kungabikho ngquzulwano phakathi kwababuthi berhafu nabantu boMzantsi Afrika. Umyalezo kwikomishoni yalapha ekhaya uthi unondyebo kandlunkulu uyenzile indima yakhe, ngoku icekwa lilele kuni boosomashishini. Yenzani eyenu indima nize ngaphambili.

Ikomiti eyongameleyo ithe xa igoca goca isebe nekomishomi kwacaca mhlophe ukuba kuninzi ekufuneka kwenziwe ukufundisa oosomashishini ukuze bangaziboni njengabafakwa emgibeni. Ndinethemba lokuba ikomishoni xa iza kwenza ingxelo kwikomiti iza kucacisa ukuba ngobani ababasebenzisana nabo kolu xanduva lungaka. Kule mfundiso kufuneka babone ukuba kuyifuneko kwaye kulilungelo labo ukurhafa nokungarhafi xa kufanelekile. Umceli mngeni kwikomishoni ngoku kukhangela ukuba bangaphi na oosomashishini abafuna ukubafaka kulo mnatha.

Siyikomiti eyongamele eli sebe kufuneka siyakhele umkhanyo le nkqubo kuba isininzi saba bantu sithetha ngabo ngeli lixa ngabantu abangazange baye esikolweni sezoshishino kwaye bondla iintsapho zabo abathathi ntweni. Ngokutsho andifuni ngathi ndiyalawula koko ndiyazi ingathatha ithuba esingangonyaka. Ndiyazi mphathiswa ukuba lo mhlaba sizakunyathela kuwo uthambile ufuna ubuchule kuchulwe ukunyathela. Nathi kufuneka sibaze iindlebe sivule amehlo njengekomiti eyongamele eli sebe. Sibongoza njengombutho wesizwe ukuba le Ndlu ibekekileyo iwamkele lo mthetho uthiwe catha apha. Enkosi. (Translation of isiXhosa speech follows.)

[Mr S E ASIYA: Hon Deputy Speaker, hon Ministers, hon members of the House and comrades, I am grateful for this opportunity I have been given to present this speech to this House on the issue of tax amnesty. The tax amnesty came at a time when we commemorated the 30th anniversary of whites from Pretoria brutally killing the youth from Soweto, KwaMashu, and New Brighton in Port Elizabeth and also in Langa.

The commission of tax collectors, through its experience of working closely with small and up-and-coming businessmen, has noticed that most of them have not registered or have not disclosed their details according to the Bill that has been presented in this House. We appeal to the members of this House to support this Bill, as it will enable businessmen to register with the commission without fear or the threat of falling into the trap of being penalised. There are rumours that people will be penalised and have their belongings that they have collected seized once they register. I want to say that that is not true. Let me stress that this opportunity cannot be made available to those whose books are still audited and have qualified reports. If a person earns R35 000 per annum, that person will not pay even the minimum tax in this country. If the earnings are more than R35 000 the person will pay 2% towards tax. Businessmen are requested to act quickly and make use of this opportunity.

This is the second phase of tax amnesty offered by the ANC-led government. In the first phase the opportunity was given to businessmen who trade outside the borders of this country. Most of them grabbed that opportunity and came forward. This contributed positively to the National Treasury.

When I comment about tax in this honourable House, from the outset I want to say that it is necessary that every person or businessman is appropriately required to pay any type of tax required. This afternoon’s deliberations will focus on the planned tax amnesty tabled in this House and to the committee. We scrutinised it thoroughly and unanimously agreed to support the proposal.

Some businessmen even suggested that the ceiling for this tax amnesty be raised to millions of rands. The committee, department and the commission of tax collectors say this gesture is extended only to small businessmen and not to the capitalists. When the majority of people and businessmen abide by the law and pay tax, government’s development programme will not fail but will prosper. Last week we were commemorating 16 June 1976. Most people thought of what were they were doing and what happened on that day. Did we for a moment think about the nature of tax during those days? During that year the co- operative tax rate was about 43%. The tax paid by people with high earnings was about 66%.

The ANC-led government, who do not want to be at loggerheads with small and big businessmen, provided this golden opportunity of tax amnesty, so that there should be no conflict between tax collectors and South African citizens. The message sent by the National Treasury to the commission is that Treasury has played its role and that the ball is now in the court of businessmen. Make your mark and come forward.

When the portfolio committee interrogated the department and the commission, it became clear that a lot needs to be done to train businessmen, so that they do not feel that they are being led into a trap. I hope that when the commission presents its report to the committee it will indicate the people who co-operated with them in this huge responsibility. From this lesson they must see that it is necessary that they pay tax and that it is their right to pay, or not to pay tax if that is appropriate. The challenge to the commission is to check how many businessmen they want to bring into this net.

As a portfolio committee in this department, we must carefully observe this programme because most of the people we are referring to have no formal education in business and they work to provide food for their children; they are poor.

I do not want to appear to be making a ruling by saying this, but it will take about a year. Minister, I know the area we are approaching is a sensitive one and we need to tread very carefully. We must listen carefully and be attentive as a portfolio committee in this department. As the African National Congress, we appeal to the House to support this Bill presented before us. Thank you.]

The MINISTER OF FINANCE: Thank you very much, Deputy Speaker. I’d like to thank all the parties for supporting the Small Business Tax Amnesty and Amendment of Taxation Laws Bill. There are a few issues that are worth commenting on.

Dankie aan die agb Van Dyk vir die ondersteuning, maar jy doen dit met so ’n swaar hart. Jy is so treurig oor die steun, maar ons los dit maar vir nou. [Thank you to the hon Van Dyk for the support, but you give it with such a heavy heart. You are so lacklustre about the support, but we’ll leave it there for now.]

In respect of the hon Vezi regarding the taxi industry: clearly, you are not going to be able to resolve all the issues with the tax amnesty, but it is a very important start. Hon Harding, the R14-million threshold for small business kicks in in the 2007 year and the R10 million is in line with the applicable maximum rate in the year in the question.

In respect of the Financial Intelligence Centre Act, there will be a waiver for advisers, but I have said before, and it is worth repeating, that the tax amnesty does not render the evil gains of criminals lawful. If people have acquired wealth by foul means, you can’t by a tax amnesty now allow them to regularise their affairs. They remain outside of the system, and I think it is important to recognise that those who have broken the law must feel the full weight of law enforcement, especially those who dispense chemicals into townships that poison the heads of young people.

Finally, a number of members have spoken to this: clearly, we would like to be in a position in which all our tax laws were simplified quite extensively. It is work in progress. It is also important that we don’t adopt this “ag foeitog” approach [“ah, shame” approach] in respect of small business.

This is because there is actually a much higher level of sophistication and savvy than what we give small business credit for. Some have fallen into a situation now in which their tax affairs are not in order. But, from our own engagement, I am quite impressed with the amount of savvy and street wisdom that obtains and I am pretty sure that small businesses will know that it is in their interests to regularise their affairs.

Thank you very much for the support. We ask that the matter now be taken to the next stage. Thank you very much, Deputy Speaker. [Applause.]

Debate concluded.

Bill read a first time.

   SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL


                       (Second Reading debate)

There was no debate.

Bill read a second time.

SECOND SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL

                       (Second Reading debate)

There was no debate.

Bill read a second time.

THE NEED FOR SOUTH AFRICA TO UNDERGO A SKILLS REVOLUTION IF IT IS TO MEET THE GOALS OF ASGISA

                      (Subject for Discussion)

Mr C M LOWE: Thank you, Madam Deputy Speaker.

Professional skills are critically needed as the country moves into a higher economic gear and one of the most fatal constraints to shared growth is the lack of skills – nothing short of a skills revolution will extricate the country from the skills shortage crisis it faces.

These are the words of the Deputy President, speaking at the launch of the Joint Initiative for Priority Skills Acquisition on 27 March. “That fact”, she went on to say, “should be admitted with emphasis”.

The DA welcomes the Deputy President’s refreshing candour, absolutely concurs with her assessment of the situation and thanks Parliament for agreeing to debate this important matter this afternoon.

South Africa needs to undergo a skills revolution if it is to meet the goals of the Accelerated and Shared Growth Initiative for South Africa. My colleague the hon Van Dyk will speak to the need to address the current legislated racial bias that prevents thousands of skilled South Africans from applying for or being placed in those skilled positions that are currently vacant. Suffice for me to say, that starting a skills revolution also means stemming the flight of scarce and crucial skills out of the country and welcoming back individuals who have left the country because of the fact that affirmative action quotas prevent them from getting work and contributing to our country’s economy.

Every skilled position filled results in the creation of eight further jobs – so if we fill the 500 000 skilled vacancies, we can create up to 4 million new jobs and be well on our way to meeting government’s goal of halving unemployment. These skilled individuals can, in turn, mentor, train and teach the as yet unskilled employees. Everybody wins.

But to do this with a skills revolution that will truly deliver the skills and jobs, economic growth must be the non-negotiable priority above racial preferencing. If we continue along the current path, racial transformation will continue to occur only among South Africa’s small elite at the expense of economic growth, jobs and ultimately the unemployed masses.

Twelve years after the introduction of the RDP, the fundamental problem remains the same, namely wide-scale unemployment of up to 40% of the workforce, with much of it caused by a huge skills deficit. Recent HSRC skills surveys show that fewer than 40% of school-leavers currently find jobs.

There have been some successes within the Seta systems, but by and large they have been an expensive failure. They have not nearly met their learnership targets and, in the few exceptional Setas where they have done so, only a very small percentage of learners have actually gone on to find work. Even with the Minister of Labour’s intervention in 2004, arising from the extremely poor performance of the Seta system, the situation has hardly improved.

The DA’s solution to the skills crisis is to make companies and private- sector bodies, which have the analytical, logical and managerial ability to develop skills far more effectively than the Setas, the engine rooms for the skills revolution. The combined decentralised action of thousands of South African businesses will result in an economy-wide responsive, efficient training environment - a true skills revolution. If the entire existing budget for Setas were channelled into such an initiative, the amount left over would easily fund a nationwide tax rebate equivalent to one third of tertiary institution fees for four years of successful study.

Combining such a scheme with a tax deduction of 150% of the first R2 000 per month of every employee’s salary would create a situation in which businesses are incentivised not only to employ more workers, but to train and develop them to meet the future skills needs of the businesses and of South Africa.

Solving a problem of this magnitude also means clearly delineating responsibilities between the Department of Education and the Department of Labour. Yet it seems that these two departments have been involved in a turf war over who has responsibility for what. And the result has seen schools across the board producing matriculants who cannot do simple maths or spell. Yet maths and science are two key subject areas that learners require if we are to effect a skills revolution.

Concerns raised by Professor Jonathan Jansen, Dean of Education at the University of Pretoria, echo the very concerns raised by two Seta CEOs at last month’s Labour portfolio hearings on youth unemployment, concerns denied and shouted down by some members of the portfolio committee. They are that the current education syllabus produces learners who lack the basic skills of reading thoughtfully, writing accurately and speaking fluently, as well as the basic ability to work with numbers.

The SA Democratic Teachers Union has come out in full support of Jansen’s suggestions. I think that the Portfolio Committee on Labour needs to look at these concerns again and see how this lack of basic skills makes it extremely difficult, if not impossible, for matriculants to find or create ordinary jobs, never mind highly skilled positions.

The Deputy President agrees. Last week in Parliament she conceded that there is still a big gap between the skills taught in schools, colleges and universities and those required in the workplace. Again, the DA wishes to acknowledge her frankness and to support her views.

Employers spend considerable sums giving basic training to matriculants before they can be given tasks that they should, by that time, be able to figure out for themselves. Universities confirm that first-year students, often with good school symbols, lack the knowledge and skills to meet the educational demands of higher education, including the inability to do basic library research, work within a diverse team and solve the sort of problems they may meet.

This problem of inappropriate education is as bad in the formerly white schools as it is in the badly equipped black schools, although in poor schools bad syllabi are compounded by teachers who lack sufficient knowledge and sporadic school attendance.

In the time left to me at the end of this debate, I shall summarise and conclude on this very important issue. Thank you. [Applause.]

Mr L ZITA: Chairperson and colleagues, over the past 12 years the ANC-led government has laid the foundation for stable yet progressive rule. In this decade and beyond, we have surprised even ourselves on the ability to keep a positive and stable macroeconomic stance whilst addressing the demands for social protection and the pursuit of pro-poor policies.

Some might undervalue the importance we ascribed to stability, but we understood that only in this context would we be able to create the conditions for sustained social transformation in our society. Today the public rating of our government is the highest in decades. Indeed, it is not the fecundity of our imagination speaking when we say that, to the majority of South Africans across racial and class divides, there is a palpable feeling that today is better than yesterday and that tomorrow will even be better.

However, despite these achievements, in areas such as housing, water, electricity and social protection, a lot still needs to be done. Our levels of unemployment are narrowly estimated to be at 27% whilst in an expanded form are estimated to be 40%.

According to the Labour Force Survey in September 2005, over 34% of those employed were earning under R1 000 per month. Together with those who were earning between R1 000 and R2 500, they constituted 60% of our labour force. To restate this: 60% of South Africans, the majority of whom are African, earn less than R2 500 per month. This should be contrasted with the R52 million that Whitey Basson from Checkers, the R42,7 million that Steve Ross from Edgars and the R19 million that Phuthuma Nhleko from MTN get every year. Therefore, we not only have a problem of high unemployment, we also have a generalised situation of low wages and unacceptable levels of inequality in our society.

Asgisa talks to this reality. Firstly, Asgisa seeks to address the causes of this sad situation. You cannot find a solution to a problem if you have not clearly determined the ailment. The problems of our economy derive from it being an enclave economy, with a limited manufacturing base and a limited domestic market dependent on primary exports, undergirded by the overdetermination of historically institutionalised racism.

This historically racist and enclave economy, designed for a minority of South Africans, has failed to meet the needs of a postapartheid society with unrestricted labour mobility and the demands of a globalising economy. As a result of this, a number of binding constraints are evident.

There is a tendency towards volatility of the currency, an expensive and ineffective national logistics system, a shortage of suitably skilled labour reinforced by the costs of apartheid geography as well as barriers to entry, limits to competition and limited new investment opportunities, with a regulatory environment which burdens small and medium-sized enterprises, and challenges in state organisation, capacity and leadership.

The Accelerated and Shared Growth Initiative for South Africa is about increasing the pace of growth whilst simultaneously sharing the basis and the proceeds of that growth. To effect both the sharing and the growth, the Asgisa programme locates the democratic state at the helm of an accumulation process that seeks to catalyse the broader economy on a renewed and sustained wave of investment. Beyond this objective of investment it seeks to create an enabling environment that fundamentally improves the conditions for doing business in South Africa. To effect this, the government seeks to invest R370 billion over the next three years in electricity, transport and communications infrastructure.

Beyond this stimulating role, these investments are also designed to improve the environment of business. There are also specific sectoral initiatives that the Asgisa programme seeks to focus on. They include business process outsourcing and tourism in the service industry. In the manufacturing industry the priority sectors are biofuels, chemicals, metals and metallurgy; agroprocessing; wood, pulp and paper; clothing and textiles, and durable consumer goods.

Thirdly, the government seeks to consolidate and have an effect on the second economy interventions by bridging the links between the first and the second economy, as well as strengthening sustainable livelihoods.

As the ANC we want to underscore the fact that for us the Asgisa programme has to be the anchor around which every policy of government and the private sector is measured. Every programme of government should be evaluated on the extent to which it advances accelerated and shared growth. From the point of view of Parliament this will be the angle from which we do our oversight work.

All of these interventions will be unrealisable without the appropriate skills to realise them. To this extent, we agree as the ANC with the topic of this debate. Indeed, nothing less than a revolution will be needed to realise the acquisition of skills.

We endorse Jipsa, the Joint Initiative for Priority Skills Acquisition. We endorse, in particular, the resoluteness and creativeness that the government has put into this question. The attempt to identify in precise terms what skills shortages we have will go a long way in helping us to solve this challenge.

It is our view that whilst this process should be led by the government, society should position itself to respond to these identified sectors. If engineering or IT skills are needed, training institutions should position themselves to respond to these needs. To ensure that this societal positioning achieves the desired results, measures will have to be pursued to ensure that the skills that people are trained in are of the appropriate character and level. There should therefore be appropriate quality control measures.

We also believe that what we are dealing with here is a moment of epochal dimensions for our country. Epochal circumstances demand epochal means. If we have serious skills shortages, why should we not continue training even in the evenings? Why should we not recruit enough trainers to ensure that, just like factories that have to have night shifts to meet greater demands, we also have such shifts for skills training?

As the ANC we believe it is important that we maintain the momentum of a plough-back initiative to everyone who has something to offer with regard to skills. Appropriate incentives should be looked at to ensure that South Africans outside the country come back. We need to ensure also that beyond material incentives a volunteer movement for skills is mobilised. We need to establish, amongst other things, a register of retired maths teachers who can be mobilised for the challenge of skills. The same can be said for language teachers, retired plumbers, electricians, etc. Our society needs to heed the perennial call of the Congress of South African Students, Cosas, which says: “Each one teach one.”

Without undermining development in other African countries, we need to position our country as a destination of choice for skilled Africans on the continent and for those in the African diaspora. To this extent we will have to fight the demon of xenophobia.

More importantly, it will be critical that all levels of government and their respective business and labour counterparts co-operate in establishing their localised Asgisa initiatives, including a skills plan. Every municipality in our country should have the skills and the resources to effect this.

It is important to indicate to Mr Lowe that it is not correct to counterpose the need to involve all South Africans in the skills challenge and the challenge of black economic empowerment and affirmative action. These things reinforce each other. You cannot say that one is more important than the other. Yes, we need to invite people to come and contribute with their skills, but we must also continue with the challenge of transforming the skills profile of our society. It cannot be correct that only whites are engineers; it cannot be correct that only whites are IT operators. We have to ensure that everyone participates in all the critical skills our society needs.

Secondly, with regard to the setas, I think that indeed the Setas are a challenge and all of us would acknowledge that. More can be done to ensure that there is convergence between what the setas are offering and what the industry needs. These are challenges that we need to look at and address.

I would challenge business to come up far more energetically and decisively to participate in the Seta process to ensure that they themselves indicate the critical skills that they are missing so that there is confluence and convergence between the market needs and the supply of those skills in our society.

Only with this level of mobilisation will we be able to ensure that the ambitious programme of Asgisa is able to meet the 6% growth rate and halve unemployment by 2014. I thank you. [Applause.]

Prince N E ZULU: Hon Chairperson, the overriding goal of Asgisa is to drive the country’s economic growth to sustained levels of 6% per annum in order to accelerate delivery on absolute needs and broader social development. This needs to happen faster and better in order to avoid a future full of uncertainties for South Africa.

By now it is common cause among government, the business sector and other role-players that South Africa suffers from a dire shortage of skills in various fields, such as engineering, science and medicine. To that end, the government launched Jipsa as a short-term measure to acquire the priority skills the economy needs to expand and grow. We welcome this move.

However, Jipsa will only address short-term needs and the country needs a complete rethink on skills development for the future. There are many facts about the skill shortage that can be mentioned and I want to highlight just two. Hon members would be aware that Eskom is planning a massive expansion programme to increase electricity supply, which is already under some pressure due to growing demand. But, two years ago when Eskom looked for 400 qualified engineers in the electricity field, it could only find 160 such engineers in the country after a search that lasted more than a year.

The mining industry, one of the most important sectors in the economy, relies heavily on artisans. But, of the 51 000 artisans in South Africa, it is expected that about 70% will leave the industry in the next five to six years due to natural attrition as the average age is around 54. That means the industry will have to train between 10 000 and 12 000 artisans every year, but currently there are only 1 695 learners in artisan training. This paints a very bleak picture.

These examples show the depth of the skills problem in our country. But what is even more shocking is the fact that the majority of learners who come through our school education system are simply not ready to be taken up into training programmes, learnerships and higher forms of education, because their basic skills such as reading, speaking and writing are not up to the mark.

We can talk about the need for a skills revolution, yes, but what we really need is an education system that produces learners who already have the basic skills to enter seamlessly into training programmes and skills development learnerships.

While we agree that a skills revolution is necessary, the IFP feels that an education revolution will serve our country’s long-term interests and economic development more. Thank you.

Mr H B CUPIDO: Chairperson, if a skills revolution will ensure that poverty and unemployment rates are halved by 2010 or 2014 and that a 6% growth rate will be achieved, it becomes more imperative that all role-players consistently demonstrate their visible commitment to such a skills revolution and provide the South African public with ongoing evidence of measurable results.

The identification of scarce skills is an appropriate place to start, and this first phase of the Joint Initiative for Priority Skills Acquisition, or Jipsa, has been proceeding remarkably well. The logical next step would be to focus on those institutions at which South Africans can acquire these skills and it is at this point that some critical issues arise.

By the time our learners reach the tertiary educational level, their capacity to acquire skills has, to a large extent, already been shaped by the preceding school years. In recent times, there has been a tendency to lower the standards of education in order to boost pass rates. This lowering of standards significantly impairs learners’ preparedness for the acquisition of further skills.

A further area of concern is the removal of formalised trade tests for artisans. The ACDP is of the opinion that the setting of standards for our technical skills groups must not be adversely affected by the absence of these trade tests and that integrity must be maintained in the certification of our artisans.

The ACDP supports the idea of a skills revolution as the primary vehicle for accelerated and shared growth. [Time expired.]

Mr M J G MZONDEKI: Chairperson, let me start by sharing with the members an article that appeared in Enterprise magazine in June 2006. This article on some of the work that is done by the Umsobomvu Youth Fund is about encouraging young girls and boys to embark on business.

This article says that that the fund’s Umsobomvu in-school entrepreneurship programme has inspired a Limpopo-based schoolgirl to invest her pocket money in a vegetable and fruit business in her village. This girl, Reneilwe Kabe, 15 years old and a Grade 10 pupil at Machedi Secondary School in Garankuwa village near Polokwane, was the winner of a business plan competition held by the Umsobomvu Youth Fund in collaboration with the Maths Centre and National Foundation for Teaching Entrepreneurship. She’s off to New York as we speak to represent South Africa’s youth at the 26th National Foundation Annual Programme Partner Retreat Conference. [Applause.]

The entrepreneurship programme was modelled on the NFTE programme, which was brought to South Africa from the US by Umsobomvu. This young entrepreneur was introduced to farming by reading her father’s books on gardening. She uses her pocket money to buy seeds, and her parents assist her to purchase the fertilisers and pesticides. We are told that her business is flourishing. Her markets are the health clinics in the area as well as the pension paypoints. She says that the aim of her business is to provide the poor rural community with easier access to fresh fruit and vegetables. She says, “Starting my own business has brought me closer to health issues and the importance of healthy food and a balanced diet.”

The article goes on to say that this programme by the Umsobomvu Youth Fund has also benefited the community. The Umsobomvu programme manager, Thembisile Khoza, says that the programme has already been introduced to the Department of Education and is in line with the national government strategy of outcomes-based education. Khoza explains that the in-school entrepreneurship programme has begun to bear fruit for the entire community and not just for children and teachers.

I think we can take a few lessons from this in that if all of us begin to identify these little programmes that are intended at skilling people from very young ages, I am sure we can go a long way in meeting some of the challenges that we have. I wish I could see more young boys and girls getting inspired in the same way that Reneilwe did. If we did so, I’m sure that many of them would not be queuing looking for jobs. They would be busy preparing their recruitment policies. I also wish that Members of Parliament could identify more of these programmes in order for us to sell more of them to the rest of the country. I wish Reneilwe every success in her endeavours.

The report of 2003 on the state of skills in South Africa summarises the key features of the South African labour market as follows: unemployment remains the key challenge for transformation for the South African labour market. It says that providing training especially to African unemployed youth could enhance their prospects of accessing the labour market. Such an intervention can also promote social cohesion and build the skills base from which accelerated growth and development can be launched.

The proportion of African workers with relatively low educational levels remains large and should form a focal point in attempts to link skills development and equity, and my colleague Langa Zita has alluded to the fact that we need to combine these two. We can’t talk about skills development and not talk about employment equity.

The African workers remain underrepresented in certain high-skill occupations and this should also form a focal point in linking skills and equity where training can assist and offer a chance for promotion and mobility in the workplace.

I would like to focus my speech on the role of the employers and the employees in skills development and training in the workplace. The Labour Relations Act provides for a workplace forum, which is a structure that allows for consultation between the employers and the employees. The forum deals, amongst other things, with the restructuring of the workplace, including the introduction of new technology and new work methods, education and training and other matters of consultation. There is no doubt that when such restructuring takes place, when new methods are introduced, new skills are also needed.

The employers have a prerogative to produce a skills audit, which reflects the skills in that company. The workers must also ensure that indeed the skills audit is a true reflection of the workplace and, again, my colleague Langa Zita did say that the workers have a role to play in ensuring that the skills we are given are the skills that we indeed need as workers.

I earlier referred to the need for a link between skills development and equity. The Employment Equity Act provides for a code of good practice in the preparation, the implementation and the monitoring of employment equity plans. The process needs to include proper communication and awareness in terms of all stakeholders. This includes the workers and the employers. The unions or the workers need to ensure that through their representatives the plans indeed address the inequalities in the workplace.

The ANC believes that through the strengthening of this process workers can get an opportunity for mobility and promotion. Workers can be trained and reskilled instead of being retrenched. Programmes such as the Abet programme need to be properly communicated among the stakeholders so that concerns, such the cost of training and loss of production time – again, Comrade Langa Zita did talk about where we could even extend training after hours - can be discussed and resolved by all the stakeholders.

I want to talk about the role of employers in assisting new entrants to acquire work experience. There are good examples of companies that go out of their way to orientate new graduates who have no experience and to place them in mentoring programmes for management positions.

South Africa needs many more such companies so that together we can reduce the number of graduates on the streets. My personal experience is that many employers are reluctant to give such experiential training; they want to have ready-mades. We further applaud the government’s commitment to skilling the nation through various programmes such as the learnerships and apprenticeships.

Again, regarding the problem of the Setas, we appeal to all stakeholders to deploy people who can add value to the Seta boards, so that the Setas can function even better. Currently, there is an outcry that the Seta boards are not strong enough because there is reluctance by some stakeholders to place their key and senior staff on these boards. We need strong boards that can influence the work of the Setas.

The role that is played by Ditsela, which is the Development Institute for Training, Support and Education for Labour, is highly appreciated. Ditsela was created to help build the labour movement’s education and organisational capacity. Hence, we said that we need a very strong labour movement that can engage with the new challenges that we all face, especially in the skills area.

Finally, we welcome Jipsa and we would like to quote the Deputy President during the launch of Jipsa earlier this year. It is unfortunate that I am quoting from the same book my colleague Lowe quoted from:

Nothing short of a skills revolution by a nation united will extricate us from the crisis we face. We are addressing log jams, some of which are systemic and therefore in some cases entrenched, even in the postapartheid South Africa. The systemic nature of some of our challenges undermines our excellent new policies, at least in the short term, hence the need for interventions such as Jipsa to enhance implementation of our policies.

Only if we have a nation that is united in partnership can we reverse the trend with regard to skills and give our policies a chance to succeed in the medium to long term.

Thank you, Chairperson. [Applause.]

Mr W D SPIES: Hon Chairperson, according to traditional economic thought, the country’s most important resources are its mineral wealth and its infrastructure. This is still true, but as the information revolution has forced the global economy away from large infrastructure and resources towards knowledge and skills, skills are increasingly becoming an important commodity. That is why the challenge is for any country not only to enable its population to acquire skills, but also to retain those people once they have acquired the skills that they need.

Skilled people are therefore any country’s most valuable asset. Economist Dr Pieter Haasbroek of Barloworld calculated that for every one professionally skilled person leaving the country, up to eight job opportunities are taken with him or her. The exodus of skilled South Africans is therefore a determining factor in the current unemployment crisis in the country.

The FF Plus commends the statesmanship, or rather stateswomanship, displayed by the Deputy President when she accepted the challenge of our party to have certain skilled and desperate white South Africans screened and appointed by the Development Bank of Southern Africa. In this regard, the FF Plus on behalf of Zanda van Rooyen, Esias Pieterse and Chris van Zyl wishes to thank the Deputy President for giving them the opportunity to offer their skills towards the improvement of local government.

But these people are just a drop in the ocean compared to the hundreds of thousands who have already had to leave the country in order to earn a living elsewhere. Thank you. [Time expired.]

Mr I S MFUNDISI: Chairperson and hon members, there is a great need for a philosophical, ideological, educational and psychological overhaul of the mindset if this country is to ensure that we have the required skills. Our education system has to be assisted to transform itself to the point of producing graduates of the new age of hope who will grapple with the challenges of information technology. Our universities should revert to internships so that when graduates leave university they have had first- hand experience and potential employers have noted them already.

Affirmative action should be put under the microscope to examine the extent to which it is doing what it is meant to do in terms of the Constitution. We have to guard against reversing the evils of the past as no two wrongs make a right. To mind comes the unpleasant situation in the Department of Home Affairs in which the accounting officer, in his own words, admitted that he had no idea whatsoever what the department was about when he was appointed to the post. The floundering in the National Intelligence Agency is another example of people appointed not because there were suitably skilled but because they had a responsibility to belong to some or other political party.

The rank-and-file members of the public put it beyond doubt when they told the President at an imbizo in Namaqualand that placement in jobs depended on political affiliation and not skills. We hope that the words of President Mbeki that people should be arrested who appoint people on the grounds of political correctness and not ability will ring a bell to revolutionise meeting Asgisa goals. I thank you. [Time expired.]

Dr S M VAN DYK: Agb Voorsitter, die kern van die debat is baie eenvoudig: ons het ’n tekort aan geskoolde arbeid in Suid-Afrika, terwyl die beskikbare geskoolde werkers ook nie die arbeidsmark betree nie, vanweë regstellende aksie in die openbare sektor en statutêre voorskrifte vir die privaatsektor. Ek wil dit duidelik stel dat regstellende aksie nodig is om die ongelykhede van die verlede reg te stel, maar die probleem lê by die proses waarmee die regering dit implementeer en dit bots direk met Minister Manuel se goeie bedoelings met sy fiskale beleid om die ekonomiese groeikoers te verhoog.

Regstellende aksie dwing sakeondernemings dat die rassesamestelling van werkplekke die bevolkingsamestelling moet weerspieël. Dit maak dat sakeondernemings eenvoudig nie hul produksieprosesse uitbrei nie of dat hulle arbeid met masjinerie vervang – tot nadeel van werkskepping.

In die openbare sektor bepaal regeringsbeleid dat regstellende aksie toegepas word. Produktiwiteit word in die meeste gevalle buite rekening gelaat en word comrades, vriende en familie aangestel. Geskooldes van alle rasse word oor die hoof gesien. Baie aansoekers word met vervalste skool- en nagraadse sertifikate aangestel, maar die ekonomie is wreed genoeg om ongeskoolde arbeid se swak produktiwiteit baie gou te openbaar. Daarom lees ons daagliks van die swak finansiële en administratiewe bestuur van die openbare departemente op al drie vlakke van regering.

Die gevolg van regstellende aksie, wat die beginsel van gelyke regte en geleenthede minag, maak dat jong geskoolde arbeid die land verlaat. Volgens Solidariteit is dit so dat vir elke 1 000 geskooldes wat die land verlaat, word 70 000 ander Suid-Afrikaners sonder ’n inkomste gelaat. Hierdie emigrasie, tesame met die tekort aan ambagsmanne omdat die opleiding so swak is – en die agb Mark Lowe het daarna verwys – bring mee dat die gemiddelde ouderdom van ’n Suid-Afrikaanse vakman nou 54 jaar is. Wanneer hierdie kundiges oor ses jaar aftree, gaan Suid-Afrika ’n krisis belewe soos nog nooit tevore nie en dit kan gevare vir Asgisa inhou.

Die regering moet een ding besef en dit is dat regstellende aksie nie oornag geïmplementeer kan word nie. Dit moet oor tyd gebeur, sodat die onderwysstelsel en tersiêre opleidingsinstansies, asook die proses van indiensopleiding in die werkplek, arbeid beskikbaar kan stel van ’n hoë standaard. In dié tyd moet die ekonomie sy bestaande geskoolde arbeid van alle rasse benut, maar die blindelingse, volgehoue, ongrondwetlike implementering van regstellende aksie deur die ANC-regering voorkom hierdie proses.

Dan betoog die VF Plus die afgelope week voor die Internasionale Arbeidsorganisasie van die VN dat net diegene wat na 2 Februarie 1990 gebore is, van regstellende aksie vrygestel moet word. Wat van al die ander bruin, swart en wit mense wat wil werk en wat voor 1990 gebore is? Die VF Plus vra met ander woorde nou dat net diegene wat 16 jaar en jonger is, van regstellende aksie vrygestel word, maar studente wat tans die mark betree, is in 1983 en 1984 gebore. Wat van hulle? Gooi die VF Plus hulle nou weg? Het die VF Plus dan nou skielik geen gevoel meer vir ander blankes nie? Wil die VF Plus hê hierdie afgestudeerde studente en die huidige bestaande ouer geskoolde wit arbeid wat reeds sedert 1994 deur regstellende aksie benadeel is, dat hulle dan nou ook die land moet verlaat?

Die DA vra ’n sonsondergang vir die eensydige regstellende aksie waar alle rassegroepe nie in berekening gebring is nie. Ons moet nou ophou om nog heeltyd van ’n Nuwe Suid-Afrika te praat, wat daaglikse voorgesette regstellende aksie vereis. Suid-Afrika is nou twaalf jaar oud. Suid-Afrika is nie meer nuut nie. Ons is nou ’n gewone Suid-Afrika en al wat Asgisa nou nodig het, is dat die gewone Suid-Afrika sy arbeidsmark moet oopmaak vir alle geskooldes van alle rassegroepe, waar die produktiwiteit van die applikant die maatstaf moet wees vir sy of haar aanstelling. Ek dank u. [Applous.] (Translation of Afrikaans speech follows.)

[Dr S M VAN DYK: Hon Chairperson, the core of this debate is very simple: we have a shortage of skilled labour in South Africa, whilst the available skilled workers do not enter the labour market because of affirmative action in the public sector and the statutory prescripts for the private sector. I want to state clearly that affirmative action is necessary to address the inequalities of the past, but the problem lies with the process used by the government to implement it and it clashes directly with Minister Manuel’s good intentions with his fiscal policy to improve the economic growth rate.

Affirmative action forces business enterprises to reflect the population composition in their race composition in the workplace. This results in business enterprises simply not expanding their production processes or replacing their labour with machinery – to the detriment of job creation.

Government policy determines that affirmative action be applied in the public sector. In most cases productivity is not taken into account and comrades, friends and family are appointed. Skilled people of all races are ignored. Many applicants are appointed with falsified school and post- graduate certificates, but the economy is cruel enough to expose unskilled labour’s poor productivity very quickly. That is the reason we read daily news reports about poor financial and administrative management in Public Service departments at all three tiers of government.

The consequence of affirmative action, which disregards the principle of equal rights and opportunity, is that young skilled labour is leaving the country. According to Solidarity it is a fact that for every 1000 skilled labourers leaving the country, 70 000 other South Africans are left without an income. This emigration, together with the shortage of artisans because the training is so poor – the hon Mark Lowe referred to this - has resulted in the average age of a South African craftsman being 54 years. When these experts retire in six years’ time, South Africa will experience a crisis as never before and this can pose a danger for Asgisa. The government must realise one thing and that is that affirmative action cannot be implemented overnight. It must be implemented gradually so that the education system and the tertiary training institutions, as well as the process of in-service training in the workplace, can make skilled labour of a high standard available. During the interim period the economy must utilise the existing skilled labour force of all races, but the ANC government’s indiscriminate, sustained, unconstitutional implementation of affirmative action prevents this process.

Then we have had the FF Plus demonstrating in front of the International Labour Organisation of the UN this past week, asking that only those born after 2 February 1990 be exempted from affirmative action. What about all the other coloured, black and white people born before 1990 who want to work? In other words, the FF Plus is asking that only those who are 16 years old and younger to be exempted from affirmative action. Students entering the market now were born in 1983 and 1984. What about them? Is the FF Plus just casting them aside? Does the FF Plus suddenly no longer have pathos for other whites? Does the FF Plus want these graduates and the present older skilled white workers who have been prejudiced by affirmative action since 1994, to also leave the country now?

The DA asks for an end to the one-sided affirmative action in which all the race groups are not taken into account. We must cease continuously speaking of a New South Africa that daily requires that affirmative action be continued. South Africa is twelve years old now. South Africa is no longer new. We are now an ordinary South Africa and what Asgisa now requires is that the ordinary South Africa open its labour market to all skilled labourers from all races, where the productivity of the applicant should be the criterion for his or her appointment. I thank you. [Applause.]]

Mrs L S CHIKUNGA: Chairperson, members of the executive, hon Members of Parliament, fellow South Africans, it was in 1953 that Dr Verwoerd said these words:

I just want to remind the hon Members of Parliament that if the native in South Africa is being taught to expect that he will lead his adult life under the policy of equal rights, he’s making a big mistake. The native must not be subject to a school system, which draws him away from his own community and misleads him by showing him the green pastures of European society in which he is not allowed to graze.

With these notorious and immoral words, Dr Verwoerd introduced Bantu Education to Parliament in 1953 - not in 1994 - which began the era of the apartheid education system. The shortage of skills and lack of capacity, therefore, is by no means an accident of history, but the result of a policy that was planned and approved by the then parliament and implemented by the apartheid government.

It is important to say these things today because, conveniently, those who then were opposition parties were not heard opposing these policies. Yet, today, they are clearly heard opposing the policies of the democratic government and conveniently raising these issues as if they are this government’s making. We did not hear or see them opposing apartheid policies, not because we are not capable of doing so but because they did not oppose them.

Those who opposed apartheid policies were heard and seen. For instance, women who 50 years ago matched to the Union Buildings in Pretoria were heard and they were seen. They were women of all races and from different social backgrounds who made a stand for human rights. In the petition to Prime Minister Strijdom, those women declared, “We shall not rest until we have won for our children their fundamental rights of freedom, justice and security.” And we heard them.

Indeed, they did not rest. It is on the shoulders of these great and gallant women of our struggle that we stand. As we confront new challenges in the struggle for both the emancipation of women and the economic recovery of our country and continent, we draw inspiration from them.

The economy of our country has been consistently growing for the past seven and half years. It is true that sustained economic growth hinges on the development of skills in South Africa and even on sourcing them abroad. But it is also true that many people, particularly women and the youth, have not benefited that much from our growing economy.

When it comes to a lack of skills and capacity, and to poverty, unemployment and a lack of basic services, women and the youth are the hard- hit groups. Whilst it is true that generally, in terms of total enrolment, gender equity has been achieved in the higher education system in that the proportion of female students has risen from 43% in 1993 to 52% in 1999, gender equity continues to remain a problem, particularly in the former technikons where female enrolment increased from 32% in 1992 to 42% in 1993.

Furthermore, the spread of women students across different programme areas is still uneven. Female students are clustered in the humanities but are underrepresented in the sciences, engineering and technology, and in business and commerce postgraduate programmes. This probably is the result of less emphasis on gender equity than on race equity by institutions of higher learning, and it has to be corrected. In this regard, the National Plan for Higher Education set out to transform higher education to ensure that universities, technikons and colleges produce workers who are adequately skilled to make a difference to the South African economy.

It is further encouraging to note that the government has not only assessed the challenges but has actually correctly diagnosed them as shortages of skills. Our government has further prescribed treatment in the name of Asgisa and even Jipsa. The intended effects of Asgisa as treatment include helping women to play a bigger role in the economy by helping them to get training and skills; making it easier for them to get loans to start businesses; helping them to take part in farming projects and projects such as the production of arts and crafts; giving them better access to basic services, and getting more women into the Expanded Public Works Programme.

The Joint Initiative for Priority Skills Acquisition – Jipsa - aims to identify the urgent skills needed and to effect quick yet effective solutions. At the launch of Jipsa, the Deputy President Mrs Mlambo-Ngcuka said: “The most fatal constraint to shared growth is skills, and it should be noted that skills are not just one of the constraints facing Asgisa but a potentially fatal constraint.”

Such a statement indicates the seriousness with which the government, particularly the Office of the Deputy President, views the issue of the skills shortage. But, in sharp contrast, in 1945 a Mr J N le Roux said: “We should not give the native any academic education. If we do, who is going to do the normal labour in the community?” This is how they think even today. They dropped the ball and they are complaining about the way it is bouncing.

Jipsa and Asgisa are not just talk-show programmes. Through the programme of Jipsa, the Department of Public Works and the Presidency have co- ordinated a programme with regard to the United Arab Emirates to secure sustainable placement of women in infrastructure projects. Also, in the hospitality and finance sectors, offers have been secured for the placement of women - 100 women and unemployed graduates are targeted. These women are poor and are from poor communities. By the way, Asgisa also aims to initiate interventions to address deep-seated inequalities and target the marginalised poor. Another 120 women and youth are being placed with the Bombela Consortium to be part of the Gautrain project.

Jipsa also recognises the need for private-sector involvement. In this regard, the Old Mutual Business School is but one private-sector body that has joined, basing its project management curriculum on the Jipsa development programme. The Development Bank of Southern Africa and Old Mutual also launched the Hluma Development Local Investment Agency, a multimillion-rand initiative aimed at facilitating investment projects in marginalised areas of South Africa. Such initiatives show us the importance of unity as a nation in pursuit of the goal of a better for all.

In conclusion, as we approach our work as MPs, I believe we need to pay particular attention to these and other transformation elements embedded in Asgisa. The ANC is the architect of establishing the framework for social change. Let us continue to lead this country. Those who are hysterical need to be watchful if they neglect treatment. Rest assured, one day they will see the light and join us.

But if they do not join us, they will continue to be reborn purists who failed to effect change at many points in their privileged lives in the apartheid South Africa. They failed the people and supported immoral policies. The ANC led the people to freedom. As women in South Africa we are encouraged by opportunities suggested by Asgisa and Jipsa. We believe as women that indeed we must be at the centre of economic activities. I thank you. [Applause.]

Ms S RAJBALLY: Chairperson, the core drive of Asgisa is to halve unemployment and poverty by 2014, followed by achieving a 6% economic growth rate between 2010 and 2014. However, according to the South African Employment Report released in April, we need to create 60 000 jobs a month to achieve that. What heightens this concern is that, according to economists, we are currently only delivering 30 000 new employees a month.

The MF does, however, support the view that addressing our skills shortage through local skills development and foreign skills recruitment is essential to promoting South African economic growth.

We do, however, express our concern regarding xenophobia and the safety of foreign recruits. We request that avenues be exhausted to find local skills first to address shortages, and in this regard skills that are considered to be in short supply need to be clearly identified. These fields needs to be highlighted at tertiary institutions as potential future careers. Further, we need to question why these shortages exist and prevent the loopholes from draining our scarce skills supply.

The MF agrees that we need to undergo a skills revolution to meet Asgisa’s goals that will liberate South Africa from the shackles of poverty. Thank you, Chairperson.

Ms L L MABE: Chairperson, I would also like to join those who say that South Africa needs a skills revolution, a revolution that is going to ensure that those who were disadvantaged in the past will have a better life in future. Those who have been disadvantaged in the past will therefore contribute towards economic growth in a country and a democracy that we have fought for, a country where we have ensured that we laid down all our efforts to ensure that our children and those of us who are still living benefit from all the achievements.

But I would also like to say: Thank you, Lowe. For the first time I want to thank you.

An HON MEMBER: The hon Mr Lowe.

Ms L L MABE: It doesn’t matter. The HOUSE CHAIRPERSON (Mr G Q M Doidge): No, hon member. Let us address each other as “hon”. [Interjections.]

Ms L L MABE: Hon Lowe, thank you. I would like to say thank you again for bringing this matter to the fore so that people who do not understand why it is important for us to have affirmative action and acquire skills and for those who did not have skills to be given skills, will from now on understand this much better. I hope that in what you have said, you will also educate your colleague the hon Van Dyk, but I will come to him at a later stage during my speech.

We have a challenge as South Africa. We have a challenge as government in that the economic growth we have been experiencing has developed some employment but only to a certain extent. And it should be borne in mind that unemployment was very high because disadvantaged people, the black people, were not given the necessary skills that are needed to grow the economy. This was not a mistake; it was a deliberate intention of the past government to ensure that the majority did not take part actively in the development of the economy in this country. They were only destined to be in a bottomless pit with regard to development in this country.

I also wish I could have been there when some of the people were favoured by the past polices to ensure that they acquired the skills that they needed when some of us could not have that advantage.

I would also like to indicate that the economic growth we have experienced has, to a limited extent, impacted positively on poor households. This is because members of these poor households do not have the necessary skills to enter the economy and participate actively. It is not because they do not have the will to participate, but because they do not have the necessary skills.

I would like to say that we want to thank those business partners that have joined hands with government to ensure that we capacitate those people that have the will to take part and also to acquire those skills.

I would also like to say with regard to the public infrastructure development that government is prepared to roll out and the private-sector investment programmes, that there is no way that these can be successful without giving the necessary skills to the majority of our citizens. Those black people who did not have access to the necessary skills must get skills in the engineering field to become artisans, and that they must have on-the-job training. Once they have gone through further education and training, they must have on-the-job training to ensure that they gain the necessary experience.

I would also not support those who say that the private sector must go only for those who have the necessary experience. Where will somebody get experience if the person does not have on-the-job training? This is because that is where you get the skills; that’s where you get the experience. Therefore, I want to challenge the private sector - those of you who have not bought into the idea of taking on the unemployed graduates – to employ the unemployed graduates, give them the necessary skills and you will see wonders in that they will develop within a short space of time.

I would also like to indicate that the Dinaledi programme is a good one, but it is important that the teachers, those educators, be trained. Those educators, at the same time, must be willing to be trained, because you can try to train somebody but that person will be untrainable if he or she has not changed his or her mind-set.

So it is important that those teachers who are taken for training must change their mind-set. They must realise that they play a crucial role in ensuring that we acquire the necessary skills that we need as a country.

At the same time it is important that those who were advantaged in the past, those who have skills acquired because of the preferential treatment of past policies, must ensure that they also change their attitude. They must ensure that, during mentoring programmes, they do not do it for the sake of doing it. They must do it with real commitment, because there is no use doing it just to please government and to claim or even to charge government as much as they want to without transferring the necessary skills.

We are quite aware that in most of the programmes, or in most of the projects that government gives to consultants, these people do not transfer the skills. It is a fact. There are those who do it with passion, but there are those who want to frustrate the efforts of government to ensure that people get on-the-job training and mentoring to acquire the necessary skills. This may be done to ensure that the same people have the same benefits continually.

I would also like to say that, with urgently needed skills, we fully agree that those retired, skilled personnel need to be taken on board. When they are taken on board, as I indicated earlier, they must be willing to share the experience they have. They must be willing to share the skills they have, rather than do it for the sake of doing it and coming back after a few months or going to another project, feeling that they are indispensable. That should not be allowed. Nobody is indispensable.

It is important that those people who are retired and who will be brought to bear must ensure that they share those skills. They must also remember that they are South Africans. As South Africans, this is for the development of our country and our economy, from which their children and grandchildren will benefit.

It is no use saying that the whites who have skills need to continue to dominate the economy. It does not help, because they are in the minority. For our economy to grow, it needs the participation of the majority. I would also like to thank the private sector, for instance KPMG and the DBSA, for what they are doing to assist us in terms of acquiring the necessary skills we need as a country.

I cannot continue with my speech if I do not indicate that without the training of women, without the training of the youth who are in the majority, who have energy … You know, when you educate a woman, you educate a nation. If you don’t educate women, if you don’t give them the necessary skills, who will put food on the table for the family? This is because most households are led by women. Most households depend on women. We can go anywhere, but the fact of the matter is that our economy is dependent on the youth and on the women. So let us give these two groups the necessary support and training.

I would also like to say that unemployed graduates need to take it upon themselves to take training offered to them seriously. I know that in some areas when these people are trained, they do not have the passion to go through that training. It is just a waste. We understand fully that it might be because they have been unemployed for quite a long time. But I say, never despair. Never despair, regardless of how long you have been unemployed. Undergo that training, benefit from of it and then you will contribute towards economic growth.

I would also like to say that all these things that are frustrating government efforts to ensure that those who were disadvantaged have access to the economy are the baggage of the past. Given the type of education that we have received, the type of education which my colleagues on the left supported with passion, I expect that right now they should support the efforts that government is undertaking with passion, because they are the ones who contributed to the mess that we find ourselves in as a country.

I would also like to respond to the hon Mfundisi. Hon Mfundisi, remember when you said that appointments were made on the basis of political correctness? Don’t forget that during the Mangope regime, that is what you were excelling in. Don’t forget that. For your information, government appoints people on merit and qualifications, not the way you did, as brothers and sisters and as a family.

Hon Van Dyk: representivity is important. There is no way that the economy can continue being dominated by whites. We are in the majority, and we must be represented in the economy as the majority. I would also like to remind you that when you say that there is poor financial management, yes, you are correct. There is poor financial management in the departments. Where does it emanate from? It emanates from the policies that you supported in the past. The government of the ANC is working hard to ensure that it addresses those problems that it inherited from you people.

I’d like to also say that financial management is a challenge for government and a challenge for Parliament. That is why we have a problem with underspending. That is why we have a problem with overexpenditure. But government must still be committed to ensuring that we develop those skills. Those artisans you referred to as being around 54 years old …

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, your time has expired.

Ms L L MABE: I thought that I had 20 seconds left.

The HOUSE CHAIRPERSON (Mr G Q M Doidge): You are on minus 21 seconds.

Ms L L MABE: Thank you. [Applause.]

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Good try, hon member.

Mr C M LOWE: Thank you very much, Chairperson. I’d like to thank everybody for participating and for the contributions that they have made in the debate this afternoon.

Perhaps in future debates - and I hope that they will be on this very important topic - we could have the Deputy President and the Ministers of Labour and Education present. I know they are all very busy people, but I think this sort of issue needs their input and certainly their attention.

I’d also just very briefly like to respond to the hon Chikunga to say while it is important, Ma’am, that we honour the past, we can’t continue to live in it. I’m even young enough to have been born after Verwoerd and Strijdom had died. The democratic Ministry of Education has been around for 12 years. I think we have to realistically look up and face the problems in the Education department and deal with them and stop blaming the past.

A skills revolution, by its very definition, therefore has to include a change in the way we currently racialise our skilled jobs, but also has to include a serious and focused national debate on what is worth learning in schools and how schools should be teaching these subjects which are meaningful, so that pupils leave school with the ability to read well, to analyse what they have read, to write effectively and to speak from a logical perception. Hopefully, that national debate has started here today and the DA intends to contribute fully to it. We all have to win in this debate.

Four things that government can do immediately to address the skills crisis are to identify priority-scarce skills and exempt them from the employment equity requirements, as I have mentioned. Secondly, we need to set up a development fund to address the shortage in qualified teachers and graduates schooled in mathematical and natural sciences. Thirdly, I have talked about scrapping the wasteful and ineffective Seta bureaucracies and making regulated demand-based skills development in education attractive to employers through tax incentives. Fourthly, we need to simplify the process and reduce the timeframes for work permit applications and approvals for skilled foreigners wanting to work in South Africa.

By the Deputy President’s own reasoning, unless the skills bottleneck is unblocked, the battle against poverty and unemployment cannot be won. The DA is ready to stand shoulder to shoulder with government in tackling our skills crisis and facing down unemployment and poverty, but it will mean facing up to unpopular truths, making hard choices and introducing radical solutions, but it can and must be done. We cannot fail. Thank you. [Time expired.] [Applause.]

Debate concluded.

CONSIDERATION OF FIRST REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS – INGONYAMA TRUST BOARD

CONSIDERATION OF THIRD REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS – DEPARTMENT OF HOME AFFAIRS

CONSIDERATION OF FOURTH REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS - STATE INFORMATION TECHNOLOGY AGENCY (PTY) LTD (SITA) CONSIDERATION OF FIFTH REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS - TRADE AND INVESTMENT SOUTH AFRICA

CONSIDERATION OF SIXTH REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS - SOUTH AFRICAN NATIONAL ACCREDITATION SYSTEM (SANAS)

   CONSIDERATION OF SEVENTH REPORT OF STANDING COMMITTEE ON PUBLIC
          ACCOUNTS - SOUTH AFRICAN BROADCASTING CORPORATION

CONSIDERATION OF EIGHTH REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS - ONDERSTEPOORT BIOLOGICAL PRODUCTS LTD

CONSIDERATION OF NINTH REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS - INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LIMITED

CONSIDERATION OF TENTH REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS - GODISA TRUST

  CONSIDERATION OF ELEVENTH REPORT OF STANDING COMMITTEE ON PUBLIC
                 ACCOUNTS - FINANCIAL SERVICES BOARD


   CONSIDERATION OF TWELFTH REPORT OF STANDING COMMITTEE ON PUBLIC
           ACCOUNTS - DEVELOPMENT BANK OF SOUTHERN AFRICA


 CONSIDERATION OF THIRTEENTH REPORT OF STANDING COMMITTEE ON PUBLIC
         ACCOUNTS - AIRPORTS COMPANY SOUTH AFRICA LTD (ACSA)


 CONSIDERATION OF FOURTEENTH REPORT OF STANDING COMMITTEE ON PUBLIC
             ACCOUNTS - ACCOUNTING STANDARDS BOARD (ASB)


  CONSIDERATION OF FIFTEENTH REPORT OF STANDING COMMITTEE ON PUBLIC
         ACCOUNTS - NATIONAL AGRICULTURAL MARKETING COUNCIL


  CONSIDERATION OF SIXTEENTH REPORT OF STANDING COMMITTEE ON PUBLIC
              ACCOUNTS - GREATER ST LUCIA WETLAND PARK


 CONSIDERATION OF SEVENTEENTH REPORT OF STANDING COMMITTEE ON PUBLIC
   ACCOUNTS - SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE (SANB)




 CONSIDERATION OF EIGHTEENTH REPORT OF STANDING COMMITTEE ON PUBLIC    ACCOUNTS - EXPORT CREDIT INSURANCE CORPORATION OF SOUTH AFRICA LIMITED
                               (ECIC)


 CONSIDERATION OF NINETEENTH REPORT OF STANDING COMMITTEE ON PUBLIC
                   ACCOUNTS - COMPETITION TRIBUNAL


  CONSIDERATION OF TWENTIETH REPORT OF STANDING COMMITTEE ON PUBLIC
               ACCOUNTS - SOUTH AFRICAN NATIONAL PARKS


CONSIDERATION OF TWENTY-FIRST REPORT OF STANDING COMMITTEE ON PUBLIC
         ACCOUNTS - SOUTH AFRICAN BUREAU OF STANDARDS (SABS)


CONSIDERATION OF TWENTY-SECOND REPORT OF STANDING COMMITTEE ON PUBLIC
                  ACCOUNTS - SOUTH AFRICAN TOURISM

Mr N T GODI: Chairperson, comrades and hon members, it is my singular honour and pleasure to once more present before the House a set of reports adopted and recommended by the Standing Committee on Public Accounts. I must indicate that we have not departed from the Scopa tradition of working by consensus and these 22 reports were adopted unanimously.

I must also express my gratitude to my Scopa colleagues, the staff and the Office of the Auditor-General for the amount of effort they put into our huge workload. I only wish the House could appreciate more and better the heavy responsibility it has placed on their shoulders.

Be that as it may, let me point out that the reports we are asking the House to adopt can be put into three categories. The first category is the annual report of the committee. The report contains a summary of the committee’s activities for the past year. It is about its general oversight activities, including hearings that were held - 16 in total; the training workshop organised by the Association of Public Accounts Committees, Apac; and the Apac conference held in the North West.

The committee also undertook a study tour to Mozambique and was invited to the conference of the Australasian Council of Public Accounts Committees. We are satisfied, as Scopa, that the report correctly reflects on our activities for the year and that these activities fell within the scope of our mandate.

The challenges for Scopa, however, remain the need to cover a greater volume of work, to strengthen the qualitative aspect of its work, to ensure follow-ups on recommendations and to have a high impact. In order for all the above to be realised, there is an urgent yearning for the capacitation of Scopa, viz we need more staff and our committee members need support staff individually.

The second category consists of those entities and departments whose financial management and administration have so far not lived up to the expectations of the Public Finance Management Act and National Treasury regulations. We are referring here to the first report on the Ingonyama Trust Board, the third report on the Department of Home Affairs, and the fourth report, which is on the State Information Technology Agency. These entities and department have a range of inadequacies identified in their financial reports that do not assist the objectives of financial accountability, rules-based administration and proper service delivery.

Beyond the observations that Scopa has made, which are actually an indictment, we have also made specific and tough recommendations which, when adopted by the House, will have to be responded to by the said entities and department.

We are happy to stress to the House that National Treasury has made it an obligation for departments or entities to include in their annual financial reports a paragraph on Scopa resolutions, in which a department explains what it has done to respond to the Scopa resolutions. Therefore the resolutions we are taking here are not in vain or for their own sake.

The third category is of reports from the fifth to the twenty-second report. These are reports whose financial audits are clean and have nothing substantive to be concerned or worried about. We wish to congratulate these entities on adhering to the Public Finance Management Act and National Treasury regulations in their financial management and administration. We hope that future audits will be equally unqualified. We also hope that others will emulate their good example.

As we present these reports to the House, we also want to stress Scopa’s commitment to its oversight mandate despite the massive underresourcing of the committee. The laws that we pass in this House must be implemented to the letter by all officials and the House must express itself unequivocally in instances of transgression.

The aspirations and rights of our people to quality service delivery cannot be subverted by indifference and perversion of the laws that we pass in this House. I thank you, Chairperson. [Applause.]

There was no debate.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move that the reports be adopted.

Motion agreed to.

Reports accordingly adopted.

 CONSIDERATION OF REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS -
              ANNUAL REPORT (JANUARY TO DECEMBER 2005)

There was no debate.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move that the report be adopted.

Motion agreed to.

Report accordingly adopted.

  CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE - DEPARTMENTAL   EXPENDITURE FOR THE SECOND AND THIRD QUARTERS OF 2005-06 FINANCIAL YEAR –
                        JULY TO DECEMBER 2005

CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE - ANNUAL REPORT OF JOINT BUDGET COMMITTEE

Ms L L MABE: Hon Chairperson, hon members, I would like to present the report of the Joint Budget Committee for the year, and the second and third quarter reports of departments.

I would like to start by indicating that the Joint Budget Committee was constituted by a resolution of 2003 and was only convened at the end of

  1. It also became a long process to develop a strategic plan over the third term of Parliament and this was completed only at the end of 2005. To some people’s minds, the Joint Budget Committee is still a young committee. That is true. But, being a young committee, it is faced with serious challenges and it cannot relax because that it is still young and wait to develop. It must grow in leaps and bounds, regardless of its age. Amongst the goals of the Joint Budget Committee is that there must be a review of annual expenditure reports for effective and efficient spending by departments. These are very important objectives in the work of the Joint Budget Committee. Also, the committee must provide meaningful recommendations aimed at improving government spending by engaging the executive effectively in a dialogue in terms of expenditure in various departments.

The basic principle is that Parliament’s role in the budget should not disrupt the integrity of the budget or the integrity of the expenditure system. But Parliament must play an oversight role – the departments must be accountable to Parliament for the fact that Parliament votes on the budgets that go to those departments.

As a result, this Parliament has taken it upon its shoulders to do rigorous oversight this term in terms of service delivery, and a priority for Parliament is that we must ensure that we have proper and effective oversight over the departments. We must also monitor their spending, and that is the responsibility of the Joint Budget Committee. It will take on that task diligently and with passion.

I would also like to say that spending in departments is not as expected. We have sufficient financial resources as government, but spending is still lacking. For example, during the second quarter of the 2005-06 financial year government departments fell behind in current and capital spending. Capital spending was at 29,5% and current spending was at 43,8%. The question is: why should this be the case? Is it because we have a shortage of skills in those fields? That is a question we need to answer as members.

But that does not mean that spending should not be done as expected. We expect that spending should be done. At the same time it should be done not for the sake of doing it, but to ensure that we deliver the necessary service to the people.

Some departments are low spenders, and I do not want to delve much into that. Let us take Agriculture, for example. Agriculture is there to ensure that the poor in the rural areas get access to basic stuff, which is food, and to ensure that the rural poor get access to the economy. If Agriculture does not spend, then what? That therefore says something wrong is being done to those people who are poor, who are looking to government to ensure that their lives become better on a daily basis. And the issue is, as members we need to challenge the Departments of Land Affairs and Agriculture. Why are they not spending, when that money is supposed to go to the rural areas to develop people?

At the same time, there are some high spenders. But when we look at the high spenders, we must also check the following: high spending on what? Are they just spending because it is the end of the financial year, or is it because it is the third quarter and that is why they are spending? There should be consistent spending throughout all four quarters of the year. If people have done their homework, that would be the case, but if they haven’t during the first and second quarters, as is reflected in our report, there will be underspending. These matters will be elaborated on by my colleague, the hon Dambuza.

I would also like to refer to the lowest spenders on transfer payments – provincial and local government departments. When there is low-level spending on transfer payments, that tells us that local government is suffering as it does not get money. If local government does not get money, who will ensure that services are delivered to the people? Where will local government get money from if the national departments are not transferring money or funds? That is a challenge we need to follow up: why funds are not transferred on time, rather than making local government a dumping ground of money allocated to various departments.

The Department of Arts and Culture is a low-level spender on transfer payments. The monies that must go to agencies that promote culture and art do not get there on time. That is why they spend in such a low-level way. As the Portfolio Committee on Arts and Culture, we need to challenge them. Why are they not transferring those funds to various institutions?

With regard to capital spending, one of the lowest spenders was Minerals and Energy at 5%. I don’t want to elaborate on that one. I’d like to move to the third quarter. With regard to the third quarter, spending on capital funding was, as usual and as in previous years, very low. We say that we want to roll out infrastructure. If spending on capital is not sufficient, how are we going to roll out infrastructure? We need to make departments account for why they are not spending on infrastructure.

At the same time, I have indicated that Land Affairs is one of the lowest spenders. Land Affairs is responsible for ensuring that land restitution becomes a success. If they do not spend, how will it be a success? This is because we expect that 2014 there will be a great margin - that the majority of blacks have access to land. So Land Affairs must spend in terms of ensuring that land restitution becomes a success.

One of the challenges we face as a committee is the absence of dedicated members and dual membership of NCOP members in that they are members of the select committee and the Joint Budget Committee. When we have to convene our meetings it becomes a problem because the same people have to attend meetings of two different committees.

Another challenge we face is the frequent restructuring of committees: today it is this member, but after three or four months it is another member. That member has been moved to another committee, and after two or three months again there is a new membership. That makes stability a problem in the committee. The other thing is the absence of a dedicated researcher. I am happy that at last Parliament has appointed a researcher for the Joint Budget Committee. But we suffered when the researcher was deployed to the Pan- African Parliament. We do want to thank Parliament for appointing that researcher.

Also, there is the fact that we want to regularise our relationship with Scopa and the portfolio committees and select committees so that as the Joint Budget Committee we can inform various portfolio committees in terms of spending in their departments long before the Auditor-General comes with a report. This means that on a continual basis portfolio committees will follow up on policy implementation through budgeting, and it is our intention to have that interaction.

There must be that close working relationship between the Joint Budget Committee, Scopa, the portfolio committees and the select committees. I am just challenging them in that when we go to them and request that we have joint meetings, they must be willing to share information. Thank you very much, Chairperson. [Time expired.] [Applause.]

Dr S M VAN DYK: Chairperson, the report of the Joint Budget Committee on departmental expenditure makes for depressing reading. The budget committee discovered that departmental expenditure is decreasing gradually and that there is more underspending than there was in previous financial years. Total underexpenditure increased from R3,6 billion in the 2004-05 financial year to R5,4 billion in the 2005-06 financial year.

The Auditor-General’s reports too are often disheartening. The Auditor- General discovered that national departments were guilty of R37,3 million in unauthorised and R46,3 million in fruitless, wasteful and irregular expenditure in the 2004-05 financial year.

As far as departments are concerned, they have been faced with a budgetary reform process since 1994. Two fundamental changes have taken place in the budgetary process, namely the introduction of zero-based budgeting and, secondly, the introduction of the MTEF. Zero-based budgeting has forced departments to critically review performance, and to motivate for allocations based on proven past delivery. The MTEF has introduced stability in the budgetary process and has enabled departments to plan with longer-term strategies in mind.

But government has realised that it needs to build on these achievements, and in order to realise the desired efficiency in Public Service delivery they gave birth to the Public Finance Management Act. The implementation of the first phase of the Act focuses on the basics of financial management.

Maar, Speaker, die Ouditeur-generaal het nou bevind dat departemente nog net tot ’n mindere mate aan die vereistes van die wet op effektiewe finansiële bestuur voldoen. [But, Speaker, the Auditor-General has now found that departments comply only to a lesser extent with the requirements of the law that deals with effective financial management.]

The second phase of the Public Finance Management Act focuses on best practice financial management. In this regard, I refer to the generally recognised accounting practice of converting from a cash basis of accounting to the accrual basis.

Tans is een van die grootste probleme by staatsdepartemente juis die kontantbasis van begroting waar sekere departemente nie die werklike stand van uitgawes aan die Ouditeur-generaal voorhou nie. Baie uitgawes word steeds aangegaan deur departemente wie se begrotings uitgeput is, om welke rede ookal, voor die einde van die finansiële jaar en dan word die skuld net eenvoudig oorgedra na die volgende boekjaar wat met die nuwe begroting betaal word, asof die dienste ook eers in die nuwe boekjaar gelewer sou wees. In die verlede het die SAPD, byvoorbeeld, al tot R400 miljoen se ou skuld sodoende ongesiens oorgerol na die volgende jaar toe.

Hierdie toedrag van sake beteken dat klein sakeondernemings wat dienste lewer aan departemente nie betyds betaal word nie en sukkel om hulle werkers se insetkostes te betaal, en gevolglik om te oorleef. En dit werk direk in op die goeie bedoelings van Asgisa.

Met die “accrual basis” van rekenkundigheid sal die uitgawes reeds as ’n las beskou word wanneer die diens gelewer is, al is die rekening nog nie betaal nie en sal bogenoemde wanpraktyke in hierdie verband voorkom word.

Dit word verwelkom dat die begrotingskomitee aangetoon het dat hy die toedrag van sake by departemente onder die soeklig gaan plaas ter beskerming van sakeondernemings en ter wille van verantwoordelike departementele finansiële bestuur. Die DA steun hierdie verslag. Dankie. (Translation of Afrikaans paragraphs follows.)

[At present one of the biggest problems experience in at government departments is indeed the cash basis of budgeting where certain departments do not reflect the true state of expenditure to the Auditor-General. Numerous expenses are still incurred by departments who have exhausted their budgets, for whatever reason, before the end of the financial year and then the debt is simply rolled over to the following financial year to be paid from the new budget, as though the services will also be rendered in the new financial year. In the past the SAPS has, for example, rolled over up to R400 million’s old debt, unobserved, to the following year.

This state of affairs means that smaller enterprises that deliver services to departments are not paid on time and they battle to pay their employees’ input costs, and consequently to survive. And this is directly contrary to the good intentions of Asgisa.

With the accrual basis of accounting the expenditure will already be reflected as a liability when the service is rendered, even if the account had not been paid and in this way the above malpractices will be prevented.

It is to be welcomed that the budget committee has indicated that it will place this state of affairs at departments in the spotlight to protect business enterprises and in the pursuit of responsible departmental financial management. The DA supports this report. Thank you.]

Mr S N SWART: Chairperson, hon … Well, there’s no Minister here. The ACDP notes that the Joint Budget Committee has a wide-ranging and complex mandate, which includes monitoring, on a regular basis, monthly published actual revenue and expenditure per department.

We also note that the committee held meetings with every department, including the financially challenged Home Affairs. The question then arises as to how the committee missed the very serious financial irregularities in this department, notwithstanding various warning signals issued previously by the Auditor-General and various reports of the Standing Committee on Public Accounts, Scopa. One can also ask the question: Why didn’t the Joint Budget Committee recommend Treasury intervention, as the Minister has now done?

We do, however, appreciate that the committee is in a developmental phase and has to meet various challenges. It is an almost impossible task to monitor the monthly expenditure of all government departments, amongst the committee’s various other tasks. It is, therefore, imperative that we, in our portfolio committees, should also regularly monitor the monthly expenditure of our departments. The ACDP will support this report. I thank you. [Time expired.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Swart, did you say that there was no Minister in the House?

Mr S N SWART: No, this Minister.

The HOUSE CHAIRPERSON (Ms C-S Botha): That particular Minister? Thank you.

Ms B N DAMBUZA: Chairperson, members of the executive, hon members …

… okwam, ngale njikalanga, kukugxila nje kumba wenkcitho-mali ngamasebe karhulumente kunye namaphondo kwisigaba sonyaka ophelileyo. [… my duty this afternoon is to dwell upon the issue of expenditure by government departments and provinces last year.] In pursuit of its monitoring and oversight mandate, the Joint Budget Committee is guided by a range of national policy and legislative frameworks, including the Constitution, in terms of which budget processes are required to promote transparency, accountability and effective economic and efficient public-sector expenditure control; the Public Finance Management Act, by means of section 32 reports - monthly, quarterly and annually - and the terms of reference of the committee itself, which put an emphasis on the committee to practise its oversight over actual expenditure in the implementation phase.

In terms of National Treasury regulations, departments are required to have spent 50% of their budget by the third quarter. However, various observations have been made in this regard. National expenditure performance indicates that by the end of the second quarter of the past financial year departments had spent an average of 47,5%, with the Department of Education being the highest spender at 75,18%, followed by the Department of Social Development.

The Departments of Agriculture and Land Affairs have been identified as the lowest spenders, followed by Statistics SA. By the end of the third quarter, reports indicated that there was an increase in overall expenditure to about 70,47%, with the Department of Education being the highest at 91,9%. The Sport and Recreation department was the lowest spender, with a record of 24,67%.

In terms of current expenditure, departments’ overall expenditure was about 67,77% at the end of the third quarter, with the Department of Arts and Culture being the highest spender at 106,52%, and the Department of Sport and Recreation being the lowest spender at 40,17%.

The overall average transfers were 72,49%, with the Department of Correctional Services at 151,18% in the third quarter, and the Public Service Commission being the lowest at 0,5%. Overall average capital expenditure stands at 54,33%.

Departments with the highest overall capital expenditure included Parliament, spending 210,37% by the third quarter, followed by the Science and Technology department at 186,83%, Agriculture and Land Affairs at 158%, Social Development at 142% and Public Service and Administration at 133,47%.

The departments with the lowest overall capital expenditure at the end of the third quarter were Defence at 0,00%, Arts and Culture at 1,72%, Sport and Recreation at 12,01%, Minerals and Energy at 16,33% and Transport at 17,35%.

Generally, departments had spent a significant portion of their budgets by the end of the third quarter. It is also important to highlight that the Department of Communications significantly improved its expenditure trends over the past financial year. Abaninzi baya kukhumbula ukuba kunyaka ophelileyo eli sebe belibizwa qho ukuba lize kuvela phambi kwekomiti. Yiyo loo nto siye sabona ukuba masilincome xa libonakalisa inkqubela-phambili. (Translation of isiXhosa paragraph follows.)

[Many will remember that last year this department was regularly called to appear before the committee. That is the reason we have considered it necessary to congratulate this department when it shows improvement.]

In conclusion, in order to respond to a call by the hon President in his state of the nation address, it is important to register that the Budget plays a pivotal role in achieving broad government objectives such as the eradication of poverty, and development. Therefore, the committee has resolved to strengthen its monitoring and oversight functions to ensure that departments’ expenditure promotes and improves the livelihood of citizens, and stimulates economic growth and development. The ANC supports the report. Thank you. [Time expired.] [Applause.]

Mr R B BHOOLA: Chairperson, in view of the departmental expenditure report of the second and third quarters of 2005-06, the MF is pleased that the departments have spent a significant portion of their budgets. With 47,50% having been spent by end of the second quarter, indications show an intention to deliver.

We are pleased with the Department of Education, which spearheaded spending in that quarter with 75,18% of its budget. Further, as the third quarter concluded, overall spending was at 70,47%. We view expenditure for 2005-06 as fairly consistent. The MF does, however, express concern regarding underspending and roll-overs.

Concerning the annual report of the Joint Budget Committee, we are pleased with it but we would like to stress the importance of oversight visits that we hope will be embarked upon this year. The MF supports the reports.

Mr S L DITHEBE: Deputy Chair, thank you very much for this opportunity to address the House. In fact, in trying to do so I have realised that I have left part of my speech behind. [Interjections.] It is indeed a very short speech. I think I have left it behind.

I would like to say with regard to the report of the Joint Budget Committee

  • despite the strident voices we hear every time from this side, which strident voices say that by virtue of its majority the ANC will always sing the praises of the executive and ignore those very uncomfortable areas in so far as the oversight by Parliament of the executive is concerned – that the support of this report by all parties today is itself evidence to the effect that the ANC will not shy away from exposing difficulties wherever they are found and does not see any contradiction in playing that role and, in fact, giving credit where it is due. This is, in fact, what the ANC is doing today. That the chairperson of the Joint Budget Committee can stand in front of this House and talk about the most uncomfortable trends in expenditure in various departments and, at the same time, where these departments have done well, credit them, is in fact proof of what I have said earlier.

I must say that because June 16 was celebrated only a few days ago, we must not forget that this month is still celebrated as Youth Month. I would like to paraphrase Nicaraguan poet, revolutionary and priest Carlos Castaneda, who said that we must always think of those who died because we are where we are today because of their sacrifices. In fact, our Constitution calls on us to honour those who suffered and sacrificed in order for us to have the sweet freedom and dignity we enjoy as a people today.

As we think of those who died, we must ask whether we are increasing the availability of life-sustaining goods and services like health, food, protection, shelter and other things. We must ask whether we are raising the standard of living generally for everybody. I have no doubt that many of us will answer in the affirmative, but I would like to add that many challenges still abound. These challenges include the Department of Education, which has been spending its resources well recently, but is nonetheless confronted with vexing situations of the kind contained in the report of the SA Human Rights Commission, despite all the good intentions to utilise these resources economically, efficiently and effectively. The Departments of Sport and Recreation, Land Affairs and Agriculture are some of the culprits who must be strongly cajoled into spending their allocated budgets, as has been mentioned by the chairperson and other speakers. The lessons we draw from this experience is that Parliament is endowed with immense powers to scrutinise and oversee executive action.

The National Treasury has asked Parliament to debate the research paper that I have here and that is called “Guideline for Legislative Oversight Through Annual Reports”. Perhaps we might realise that we do not as yet need powers to amend the budget. I know that there might be very strong arguments in support of that, but I think proposals and information that we are familiar with already that are contained in here will make us realise that we not exercising those powers as well as we should.

We shall continue to deepen our oversight work as the Joint Budget Committee and work synergistically and nonantagonistically with sector portfolio structures in this institution.

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, your time has expired.

Mr S L DITHEBE: In this age of hope, as we work and yearn for the soul of the new nation, we shall always think of those who died, even from these hallowed Chambers. I thank you. [Applause.] Debate concluded.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chair, we move that the Reports be adopted.

Motion agreed to.

Reports accordingly adopted.

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES - VISIT TO PRISONS IN NORTHERN CAPE

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES - VISIT TO DURBAN-WESTVILLE CORRECTIONAL CENTRE IN KWAZULU-NATAL

Mr D V BLOEM: Chairperson, Minister, Members of Parliament, the phrase “overcrowding in Correctional Services” has become almost part and parcel of the uniform of this department.

There is a view out there that one of the main causes of overcrowding is the minimum sentence. Some people are arguing that we must do away with the legislation in this regard. I don’t think so. It is not true that this minimum sentence causes overcrowding.

Let’s go to the heart of overcrowding. The problem is awaiting-trial inmates. Let me argue further. Why do we have people sitting in prison awaiting trial for as long as seven years before they can appear before a magistrate or a judge? A recent example is a young lady who has been sitting in Pollsmoor prison. She has been sitting there for three years waiting to appear in court. She was 17 years old when she was arrested, and she is now 20 years old. That is the problem with regard to overcrowding, not the minimum sentence.

We are sitting with 50 000 awaiting-trial prisoners in our prisons. When we visited Durban-Westville prison in KwaZulu-Natal we found that, there alone, we had 5 000 prisoners awaiting trial.

The report on our visit to the Northern Cape is a bit different from other reports. In the conclusion of the report we say that we are very impressed with the good communication channels between all the role-players in the criminal justice cluster in this province. This is the only way to address the problem of overcrowding in our prisons. In all five towns, from Kimberley to Upington, everybody is working together and looking for solutions to this problem: magistrates, police, prosecutors, legal aid boards and NGOs - all of them are involved.

We know that there will always be challenges, and I want to mention some of these. They are danger allowance, recruitment of new members, the morale of staff, lack of females in management positions, and the high number of people filling acting positions.

Let me deal with one of these challenges, and that is recruitment. In Kimberley and Upington we held izimbizo. People, especially the youth, complained about the process of applying for employment in the department. They said that some of them filled in forms every time vacancies were advertised, but that they were not short-listed. They claim that some people apply only once and are successful. They want to know what criteria are being used to select these people. We must give urgent attention to this concern, because people are raising this problem all over and not only in these two towns.

The committee visited Durban-Westville prison and found that the biggest problem there was overcrowding, as I said earlier on. Overcrowding ranges from 131% in the youth centre to 228% in Medium B alone. A very serious challenge in this prison is the high number of HIV/Aids cases. Aids is prevalent amongst the majority of inmates.

Regarding the inmate tracking system that was installed earlier last year, it is of great concern to the committee that the equipment got lost. That equipment consisted of 8 292 tags worth R7 million. The problem has not been addressed as this loss was reported in February last year. The total cost of this contract amounts to R28 million.

Under very difficult circumstances the staff of the department are doing their best and are always willing to give their best. I want to tell members of this House that we have very loyal, dedicated and honest members in this department. There are only a handful of corrupt and rotten apples.

On behalf of the committee, I want to thank Commissioner Mti, the regional commissioner of the Northern Cape Mr Modise, and the area commissioner of KwaZulu-Natal Mr Manana, for the good work that they are doing in this area. It is an honour for me to present these two reports to the House.

Let me deal with an issue regarding the privileges of inmates. I have said many a time that we must really look at the privileges. We can’t have murderers, criminals and rapists enjoying the very same privileges as all other inmates in prison. We must take them and say to them, as the Minister said last week when two criminals were arrested that had escaped from Middledrift prison, that they are going to spend the rest of their lives in Kokstad. I fully support you, Minister. We must show these people that we are sick and tired of escapes and of threats to our law-abiding citizens.

Minister, in some of these prisons these inmates think that they are free. They want to control members, law-abiding citizens who have done nothing wrong. They are there to dictate. Even if a member is responding, they are going to be charged. I think we must really address that. Many of the members complain and say that these inmates now have “better privileges than us”. Minister, we must address these things.

These people have committed serious crimes outside. When they land up in prison, they think that they will, all of a sudden, know the Constitution and their rights in prison, because they are sitting there with a Constitution. They say, “this and that are my rights”. That is nonsense.

We must think first. We are not going to interfere with their constitutional rights, but we must take away some of their privileges. They can’t sit and watch television and have a nice time in prison. It must be taken away. They must feel that they have done something wrong. [Interjections.] You are next. We are going to put you in jail and you are not going to talk like this. You are going to be very … [Inaudible.] … in prison. We are going to deal with you. [Interjections.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Bloem, your time has expired, on that note.

Mr M J ELLIS: Madam Chair …

Mr D V BLOEM: No. There are still 20 seconds. I can see the clock, Chairperson. Let me deal with Mr Ellis. The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Bloem, I am in the Chair here and you will speak through me. If I have decided that your time has expired, it has expired.

Mr D V BLOEM: I thank you very much, Chairperson. [Applause.]

Mr M J ELLIS: Madam Chair, does that mean that my point of order falls away?

The HOUSE CHAIRPERSON (Ms C-S Botha): It does. Thank you.

Mr M J ELLIS: I am sure I stood up before he actually had finished.

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Deputy Chief Whip, please say that again.

Mr M J ELLIS: I said that I’m sure I stood to give a point of order before he had finished.

The HOUSE CHAIRPERSON (Ms C-S Botha): You certainly did. But I hastened the end of his speech. So it was my decision to stop the speech, and you spoke after I had told him to stop.

Mr M J ELLIS: Well, I think you did us a favour by ending his speech, Madam Chair. So I will sit down. [Laughter.]

Mr W P DOMAN: Hon Chairperson, Minister, members, on behalf of my bench- mate the hon James Selfe, I want to apologise that the DA was unfortunately unable to attend the oversight visit to the Northern Cape, but participated in the three-day visit to the Durban-Westville Correctional Centre.

Durban-Westville is a vast complex, consisting of five prisons, accommodating about 12 500 inmates, which is roughly double its capacity.

The overcrowding leads to a number of problems. The staff are overworked and stressed, the environment in which they work is very dangerous, caseloads are impossibly large, and the lack of physical space and the shortage of professional staff inhibit opportunities for rehabilitation.

There are other problems too. The lack of promotion opportunities and the absence of subsidised housing lead to staff demotivation. But other problems pale into insignificance measured against the reality of overcrowding.

As usual, overcrowding is everyone’s problem and therefore also no one’s problem. The committee heard that the diversion programmes were problematic, owing to the absence of information about previous convictions, while the magistrates reported that they had never received applications in terms of section 287(4) of the Criminal Procedure Act to convert sentences into those of correctional supervision.

It is very frustrating when Parliament establishes mechanisms to release inmates in a controlled and responsible way, but these mechanisms are ignored or rendered useless.

More worrying still was the situation around the inmate tracking system. This is an excellent system – in theory. Each inmate wears an electronic tag, which allows the staff to determine who is in the facility without having to do a roll call, and whether the right inmate is in the right part of the facility at the right time. This, of course, depends on the system working.

When the committee visited Medium A in which the system has been installed, the system was not working terribly well. It was unable to show tell members of the committee who was in a particular section. Moreover, and I must repeat what the hon Bloem said, a total of 8 292 tags valued at some R7 million were lost during the implementation period of this project.

Despite having commenced in November 2004, the system has not been fully implemented. It seems as if some staff members have actively resisted or even sabotaged the implementation. If true, this is a scandalous situation that the public accounts committee should investigate thoroughly. The most tragic aspect of the visit was listening to nurses describe the challenges they face in dealing with the large number of Aids-infected inmates. Huge problems are encountered in rolling out ARVs in the prison environment, while many people who ought to be released on medical discharges cannot be released because their families will not accept them or because the judges are unwilling to grant the applications.

The committee, however, should be congratulated on the active way in which it tackles its oversight responsibilities. The DA supports the report and the recommendations.

Maar aangesien die besoek al verlede jaar plaasgevind het, is ons teleurgesteld dat die aanbevelings nie intussen ten volle ingestel is nie. Die departement sal hieraan moet aandag gee. [Tyd verstreke.] [Applous.] (Translation of Afrikaans paragraph follows.)

[But considering that the visit already took place last year, we are disappointed that the recommendations have not yet been fully implemented. The department will have to attend to this. [Time expired.] [Applause.]]

Mrs S A SEATON: Madam Chair, hon members, the IFP supports the report of the portfolio committee on its oversight visits to prisons in the Northern Cape in October 2005 and to the Durban-Westville Correctional Centre in KwaZulu-Natal in March 2006. We fully align ourselves with the concerns expressed in these reports and support the recommendations as well.

I share the concerns of Mr Bloem with regard to the overcrowding, but I unfortunately do not have the time to go into it. But, certainly, our staff have tremendously trying conditions to work under, and I think we need to just say to them that we do support them and we do understand.

I was also unfortunately unable to attend the Northern Cape visit but did attend the Durban-Westville one. As far as the Durban-Westville Correctional Centre is concerned, the IFP shares the frustration of the committee particularly with regard to the implementation of the inmate tracking system and the centre where it is merely used for identification purposes - that’s all that it’s being used for. It is hugely problematic that lost equipment, as we’ve heard, amounted to some R7 million, and that the matter had not been addressed for a long time after it had been reported.

The biggest shock, however, was that we were informed that the inmate tracking system was functional, but this was not the case, as we’ve already heard from Mr Doman, when the committee visited the database room at the centre. The IFP therefore wholly supports the committee’s insistence that the department must please come back and report to us within three months after today’s adoption of the report. In conclusion, I wish to raise a concern that the committee’s report on the visit to the Northern Cape, which took place in October last year, is only now being considered by this House. This is far too long and we need to ensure that our reports are dealt with timeously. The IFP does support the reports and the recommendations. I thank you.

Mr S N SWART: Deputy Chair, the ACDP shares the concerns regarding the high numbers of awaiting-trial prisoners who do not pose a danger to society, but who cannot afford the relatively low bail amount, in question, which may be as little as R100. Overcrowding remains a problem, as has been pointed out, and is the root cause of health problems and the spread of diseases such as tuberculosis and HIV/Aids.

The ACDP also raised our concerns regarding the capacity problems experienced by community corrections. We note that complaints were raised by officials in the Northern Cape about a lack of staff and vehicles which, according to officials, hampers their ability to monitor parolees and probationers effectively.

However, hon Minister, there is good news. We particularly welcome the restorative justice activities at various prisons, which create or build a better relationship between the offender and the aggrieved party. A highlight, mentioned in one report, was the handing over of a house that was built by inmates to a victim of crime. To the department we say well done in that regard. The ACDP will support these reports. I thank you.

Ms S RAJBALLY: Chairperson, Minister, in view of the portfolio committee’s report regarding their visit to prisons in the Northern Cape, the MF seeks that the Northern Cape and Free State be separated as correctional service regions and that each be given a suitable budget to address the sector’s needs. The overcrowding of prisons, minimal resources, staff constraints and minimal funding appear to be the key problems in these prisons.

We are pleased to note that there is good communication between all components of the criminal justice cluster in this region. We call for the challenge to be addressed through better funding. Further, we call on the SA Police Service in these regions to clamp down on offenders in terms of gangsterism, rape and murder.

As for the correctional facility in Durban-Westville, similar constraints of serious overcrowding, minimal resources and staff shortages are noted. These need to be addressed earnestly if we are to deliver South Africa from its scary crime infestation. We would appreciate some input on this facility’s expenditure traits to analyse how to address its shortfalls. The MF supports the report. Thank you. [Time expired.]

Mr L M GREEN: Chairperson, the FD commends the chairperson as well as all the members of the Correctional Services committee who undertook the trips to both the Northern Cape and KwaZulu-Natal, visiting several prisons in these provinces. The detailed reports are evidence of much hard work done. Well done!

The FD is particularly encouraged by the restorative justice activities at the Kuruman Correctional Centre, especially the good example set by the inmates of this centre in building a house for a victim of crime in this area.

We would like to encourage the Minister and the Department of Correctional Services to continue to explore creative ways to increase restorative justice activities.

The FD supports all the recommendations in this report, especially the one that says that no person shall be kept in prison longer than the time allocated in his or her sentence. It is criminal to keep people in prison if they have served their time, especially if we note that the report says that the Northern Cape prisons have 173% occupancy. The FD supports this report. I thank you.

Mr E T XOLO: Deputy Chairperson, the visit to the prisons in Durban- Westville and the Northern Cape was informed by the need to have an insight of prison situations as part of the committee’s ongoing oversight. As revealed in the reports, there are challenges and achievements in the sphere of imprisonment.

It is proper to say that in line with ANC policies the Department of Correctional Services is committed to rehabilitation programmes. The reports show that various programmes rendered are informed by the diverse needs of different offenders. Some of the cases in both prisons are dealt with through restorative justice in terms of which the victim and the offenders are allowed to resolve disputes through negotiations facilitated by a professional officer. These approaches should be informed by the need to reduce the backlog and take into account the nature of crimes and the ages of the offenders in order to reduce overcrowding.

Ngakolunye uhlangothi, imibiko yalo Mnyango isisibonise isidingo esikhulu sokubambisana nomphakathi ekuhleleni ukuthi kube khona izinhlelo ezenziwayo, ikakhulu uma kukhona abazokhululwa ejele, ukuze kungabe kusenzeka ukuthi bazithole sebebuyela ejele futhi. Lezi zinhlelo zenzelwa ukuthi bemukeleke kahle emphakathini.

Olunye uhlangothi lugxile ekuthini lokho isiboshwa esikufunde sisesejele, okunjengomsebemzi wezandla nemfundo yolwazi, sikwazi ukuphila ngakho; nokuthi abamabhizinisi bakwazi ukuqasha labo abakade beboshiwe, noma bazakhele owabo umsebenzi bangabheki ukuba wokhamisa ngithele. Ngokwenza kanjalo labo bantu baba ngamalunga omphakathi ophilayo nowethembekile. (Translation of isiZulu paragraphs follows.)

[On the other hand, the reports of this department show that there is a huge need to collaborate with the public in planning programmes to be put in place, particularly if there are inmates who are due to be released from prison, so that they don’t return to prison. These programmes are undertaken to make sure that they are reintegrated with the community.

The other part is focusing on what an inmate has learned while in prison, which is craft skills and skills knowledge and to be able to earn a living with such skills. Businesspeople would be able to employ such ex-inmates or they can open their own businesses and avoid being beggars. By so doing, these people can be members of a loyal and good society.]

All forms of discrimination against offenders should not be allowed. It is noted in both reports on the visited prisons that the HIV/Aids pandemic is on the rise. In this regard, the deaths of ill inmates in prison should be avoided as stated in the Correctional Services Act, Act 111 of 1998. This calls for more professional staff in order to assess health-related matters, make appropriate recommendations and take preventive measures.

In conclusion, it is noticeable in the reports that holistic approaches are of vital importance to ensuring the success of rehabilitation goals. This requires the involvement of the community, business, police members, NGOs, judicial officers and even the Department of Social Development.

Above all, recommendations made by the portfolio committee should be implemented and there should be a follow-up visit resulting from previous visits. This will ensure that visits do not just take place for their own sake, but that a proper process is put in place for the future. The ANC supports this report. I thank you. [Applause.]

The MINISTER OF CORRECTIONAL SERVICES: Chairperson, hon members, I must first of all thank the portfolio committee. We do appreciate the oversight work of the portfolio committee, which greatly assists us in fulfilling our mandate. It is very ably led by the hon Dennis Bloem. Thank you to him and all the members of the portfolio committee. There are always fireworks when my chairperson comes to this podium. There are also fireworks when he goes to the prisons on visits, because my officials know that he won’t take anything lying down. He’ll make sure that things get moving.

What you have done today as Members of Parliament is that you have actually contributed to an operation we have in Correctional Services called Operation Masibambisane. As you’ll be going out to the different areas where you live, please continue visiting our centres and make sure that as you visit our centres you follow up on some of the things that are in these two reports. It’s always very heartening to hear members say, “I tried to visit or I visited this centre.”

I’ve just been talking to Mawa Ramgobin about restorative justice. I didn’t know that he was so interested in it. He came to talk to me about it. So, when you hear it mentioned here, you must know that lots of people are involved and want to help. Judy Chalmers also approached – she wants to visit a prison in her constituency. I really appreciate that kind of approach in which our members go out - Mr Mlangeni - to visit these centres. Xa bebona wena isithwalandwe [When they see you as a man of great deeds] and having known what prison life is like, they will gain some insight into what they can come out with in prison, particularly the juveniles. [Applause.]

Let me quickly go through some of the issues. With regard to the inmate checking system in Durban-Westville, I would like to assure the committee that the problems around this system are being attended to with more vigour now. We’ve identified the culprits who sabotaged the system by stealing those 8 292 tracking tags or gadgets at the Durban Westville Correctional Centre, and they are facing disciplinary action.

The pilot programme is still going on, because we want to make a success of it, and it can then go to other centres. All the gadgets were recovered and we’re now dealing with the thugs who stole those gadgets. [Applause.]

In terms of professionals – nurses, psychologists and other professionals we have spoken about - the underlying problem with regard to this in our centres is the issue of remuneration. It’s very difficult because we’ve got to deal with other departments in terms of their remuneration. This is a matter that we’ve decided to prioritise during this financial year so that we attract the best skilled professionals to our centres.

The recruitment drive is aimed at ensuring that the centres that have a dire shortage of such professionals are taken care of. We’re also reviewing their salary packages so that we are able to retain them within the department.

There are rehabilitation problems in our centres, and it is compulsory - I’ve taken that decision - for all juveniles to attend rehabilitation programmes. If they do not, they then get penalties. So, regarding the privileges that you were talking about that we should take away, chairperson, please help me so that we can do those things. Take away those privileges.

No offenders are going to tell us what to do. We did not collect them from the streets. We didn’t invite them to come to where they are now. They committed crimes. So we should treat them as such - without being inhumane, without stripping them of their dignity, without taking away any of their constitutional rights, but they should know who is who in the zoo. [Applause.]

As stated previously, the department is currently in the process of conducting an HIV and Aids prevalence survey and we do hope that when we finish that we can bring those statistics here to the House and let the House know what the situation is in terms of HIV and Aids.

Meanwhile, other comprehensive HIV and Aids treatment initiatives, which we are conducting jointly with the Department of Health, are proceeding. These include further accreditation of three correctional centres. Three of our centres have been accredited as ARV sites in addition to Grootvlei in the Free State and Qalakabusha in Pietermaritzburg.

Regarding the release of terminally ill inmates, I have publicly stated that we are considering the release of terminally ill inmates so that their welfare could be better taken care of by their relatives. Those without relatives to take care of them could be placed in government health care centres so that they can go home or, if they are going to die, they can at least die in dignity and not behind bars. We have relayed this matter to the Parole Review Board and to the National Council of Correctional Services, which is helping me. We are improving our internal communications. We are also looking at the staff morale. That is why we had internal promotions this year to try to lift the morale of our staff members, and we will continue doing so, even this year. We took them from Grade 3 to Grade 2 and then to Grade 1. We will start some time this year from Grade 1 upward, and try to get them promoted. [Applause.]

I just want to say one thing about recruitment. It has been a problem. The Jali commission, which we spoke about today – this document - has indicated that we need to outsource our recruitment drive because our members interfere with that. We’ve done exactly that. We have two companies that are doing that. But I can assure members of one thing: it still takes a long time to get to the stage at which you get all the information you want, because of the numbers of people who apply to Correctional Services – who want to work for us.

With regard to overcrowding, Nicro had a workshop during the past two days, a colloquium, where our lovely Deputy Minister participated in that programme. She assisted in that colloquium, which sat for two days. Our new Acting Judge, Judge Nathan Erasmus, also participated, and we are hoping to get good things from that process.

Lastly, we are overhauling community corrections. It needs a total overhaul. I’m sitting on the Chief Deputy Commissioner for Correctional Services, Tebogo Motseki, to make sure that we overhaul community corrections so that judges can have confidence in community corrections and then divert those that don’t deserve to be in prison into that system. We need to make that system a good one. [Applause.]

Separate regions? Not yet. We are still restructuring a lot of things, so we cannot go into anything about separate regions at the moment because we are still building capacity.

I must, as I stand here, thank the former Minister because he started the Jali commission. He went to the President. I must thank him for that, and it has come out with good recommendations. We will try to really look at those recommendations and make sure that we apply them - recommendations that the portfolio committee has made on these two reports, and I’ve read the reports. We will, as a department, make sure that we stick to whatever recommendations you have given us. Please do not get tired of calling us to the portfolio committee to report on the work that we do. We don’t feel bad about that. Actually, to me, that is operation Masibambisane. [Applause.]

The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Minister, will you please take your seat. Hon member?

Mr A M MPONTSHANE: Hon Chair, can we as the IFP acknowledge that compliment from the Minister?

The HOUSE CHAIRPERSON (Ms C-S Botha): Well, you have done so. Thank you. Hon Minister?

The MINISTER OF CORRECTIONAL SERVICES: Well, hon Ben belongs to the IFP. So, it stands to reason that you can take that compliment for yourselves.

I also want to thank the members of staff all over the country, and to thank the senior management of the department who help when these visits take place, who go with the team and make sure that they are part of the team and know the problems that we have. Correctional Services is not an easy department – it does not need a softy to try to run it; it needs a bastard. Thank you. [Applause.]

Debate concluded.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move that the reports be noted, and in saying that we want to make it clear that it’s not for any disagreement with what is in the reports or the recommendations. I think we’ve indicated that we also fully support those recommendations. But the problem with the time-lag has been alluded to in the debate, and we feel that there would be technical problems in adopting the reports as opposed to noting them. That’s the only reason we move that they be noted. Thank you.

Motion agreed to.

Reports accordingly noted.

CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT IN TERMS OF SECTION 231(2) OF THE CONSTITUTION - CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT

CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT IN TERMS OF SECTION 231(2) OF THE CONSTITUTION - CONVENTION FOR THE UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL CARRIAGE BY AIR

There was no debate.

Convention on International Interests in Mobile Equipment and Convention for the Unification of Certain Rules for International Carriage by Air approved.

The House adjourned at 17:42. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
                       THURSDAY, 15 JUNE 2006

CREDA INSERT REPORT- Insert T060615E-insert – PAGES 1429-1441

                        MONDAY, 19 JUNE 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

  1. Classification of Bills by Joint Tagging Mechanism:
 (1)    The Joint Tagging Mechanism on 19 June 2006 in terms of Joint
     Rule 160(6) classified the following Bill as a money Bill:


         a) Small Business Tax Amnesty and Amendment of Taxation Laws
            Bill [B 14 – 2006] (National Assembly – sec 77).


 (2)    The Joint Tagging Mechanism on 19 June 2006 in terms of Joint
     Rule 160(3) classified the following Bill as a section 75 Bill:


       (a)   Second Small Business Tax Amnesty and Amendment of
           Taxation Laws Bill [B 15 – 2006] (National Assembly – sec
           75).

National Assembly

  1. Referral to Committees of papers tabled
1.      The following paper is referred to the Portfolio Committee on
    Home Affairs for consideration and report. The Report of the
    Auditor-General on the Financial Statements is referred to the
    Standing Committee on Public Accounts for consideration:

      a) Report and Financial Statements of Vote 4 – Department of Home
         Affairs for 2004-2005, including the Report of the Auditor-
         General on the Financial Statements for 2004-2005 [RP 53-2006].


2.      The following paper is referred to the Portfolio Committee on
    Justice and Constitutional Development:

      a) A report in terms of section 9(5)(b) of the Magistrates’ Courts
         Act, 1944 (Act No 32 of 1944), a list containing information
         with regard to vacancies in the offices of magistrates which
         have remained unfilled for a continuous period exceeding three
         months as on 31 March 2006.

3.      The following paper is referred to the Portfolio Committee on
    Justice and Constitutional Development, the Portfolio Committee on
    Safety and Security and the Joint Standing Committee on
    Intelligence:


      a) Proclamation No R67 published in Government Gazette No 28282
         dated 29 November 2006: Commencement of sections 40 and 62(6)
         of the Regulation of Interception of Communications and
         Provision of Communication-Related Information Act, 2002 (Act
         No 70 of 2002): Amendment of Proclamation.

4.      The following paper is referred to the Portfolio Committee on
    Science and Technology for consideration:

      a) The Corporate Strategy of the Department of Science and
         Technology for (2006/7) 2005/6 to 2008/9.

5.      The following paper is referred to the Portfolio Committee on
    Public Service and Administration for consideration:

    (a)      Report of the Public Service Commission (PSC) on the State
         of the Public Service for 2006 [RP 39-2006].

6.      The following papers are referred to the Portfolio Committee on
    Safety and Security:


      a) Report of the Independent Complaints Directorate (ICD) for
         January 2004 to December 2004, in terms of section 18(5)(c) of
         the Domestic Violence Act, 1998 (Act No 115 of 1998) [RP 209-
         2004].


      b) Report of the Independent Complaints Directorate (ICD) for
         January 2005 to December 2005, in terms of section 18(5)(c) of
         the Domestic Violence Act, 1998 (Act No 116 of 1998) [RP 56-
         2006].


7.      The following paper is referred to the Portfolio Committee on
    Environmental Affairs and Tourism for consideration:


      a) Strategic Plan of the Department of Environmental Affairs and
         Tourism for 1 April 2005 to 31 March 2010, 2006/07 Review.

8.      The following paper is referred to the Portfolio Committee on
    Provincial and Local Government for consideration:


      a) Medium Term Performance Plan of the Department of Provincial
         and Local Government for 2006 to 2009.


9.      The following paper is referred to the Portfolio Committee on
    Public Enterprises for consideration:

    (a)      Strategic Plan of the Department of Public Enterprises for
         2006.


10.     The following paper is referred to the Portfolio Committee on
    Minerals and Energy for consideration and report. The Report of the
    Auditor-General on the Financial Statements is referred to the
    Standing Committee on Public Accounts for consideration:

    (a)      Report and Financial Statements of Mineral Technology
         (Mintek) for 2004-2005, including the Report f the Auditor-
         General on the Financial Statements for 2004-2005 [RP 58-2005].

11.     The following paper is referred to the Portfolio Committee on
    Finance and the Portfolio Committee on Provincial and Local
    Government:


    (a)      Government Notice No 362 published in Government Gazette
         No 28740 dated 13 April 2006: Publication of Local Government
         allocations and frameworks, in terms of the Division of Revenue
         Act, 2006 (Act No 2 of 2006).


12.     The following papers are referred to the Portfolio Committee on
    Finance and the Portfolio Committee on Labour:

    (a)      Exchange of Letters between the Government of the Republic
         of South Africa and the Government of the Federal Republic of
         Germany concerning the Project: Learnership Training System
         Programme, tabled in terms of section 231(3) of the
         Constitution, 1996.

      b) Explanatory Memorandum on the Exchange of Letters between the
         Government of the Republic of South Africa and the Government
         of the Federal Republic of Germany concerning the Project:
         Learnership Training System Programme.

    (c)      Exchange of Letters between the Government of the Republic
         of South Africa and the Government of the Federal Republic of
         Germany concerning the Project: Skills Development Strategy
         Initiative (SDSI), tabled in terms of section 231(3) of the
         Constitution, 1996.

      d) Explanatory Memorandum on the Exchange of Letters between the
         Government of the Republic of South Africa and the Government
         of the Federal Republic of Germany concerning the Project:
         Skills Development Strategy Initiative (SDSI).

13.     The following papers are referred to the Portfolio Committee on
    Finance, the Portfolio Committee on Public Service and
    Administration and the Portfolio Committee on Justice and
    Constitutional Development:

    a) Exchange of Letters between the Government of the Republic of
       South Africa and the Government of the Federal Republic of
       Germany concerning the Project: Legislative Drafting Programme,
       tabled in terms of section 231(3) of the Constitution, 1996.

    b) Explanatory Memorandum on the Exchange of Letters between the
       Government of the Republic of South Africa and the Government of
       the Federal Republic of Germany concerning the Project:
       Legislative Drafting Programme.

14.     The following papers are referred to the Portfolio Committee on
    Finance, the Portfolio Committee on Provincial and Local Government
    and the Portfolio Committee Foreign Affairs:


    a) Exchange of Letters between the Government of the Republic of
       South Africa and the Government of the Federal Republic of
       Germany concerning the Project: Mpumalanga Rural Development
       Programme, tabled in terms of section 231(3) of the
       Constitution, 1996.


    b) Explanatory Memorandum on the Exchange of Letters between the
       Government of the Republic of South Africa and the Government of
       the Federal Republic of Germany concerning the Project:
       Mpumalanga Rural Development Programme.


15.     The following papers are referred to the Portfolio Committee on
    Finance, the Portfolio Committee on Safety and Security and the
    Portfolio Committee on Science and Technology:


    a) Agreement between the Government of the Kingdom of Belgium and
       the Government of the Republic of South Africa on Technology-
       Aided Distance Self Learning in the South African Police
       Service, tabled in terms of section 231(3) of the Constitution,
       1996.


    b) Explanatory Memorandum on the Agreement between the Government
       of the Kingdom of Belgium and the Government of the Republic of
       South Africa on Technology-Aided Distance Self Learning in the
       South African Police Service.

16.     The following papers are referred to the Portfolio Committee on
    Provincial and Local Government for consideration:


    a) Exchange of Letters between the Government of the Republic of
       South Africa and the Government of the Federal Republic of
       Germany concerning the Project: Technology Diffusion through
       Technikons, tabled in terms of section 231(3) of the
       Constitution, 1996.


    b) Explanatory Memorandum on the Exchange of Letters between the
       Government of the Republic of South Africa and the Government of
       the Federal Republic of Germany concerning the Project:
       Technology Diffusion through Technikons.

17.     The following papers are referred to the Portfolio Committee on
    Finance, the Portfolio Committee on Foreign Affairs and the Joint
    Monitoring Committee on the Improvement of Quality of Life and
    Status of Children, Youth and Disabled Persons:

    a) Exchange of Letters between the Government of the Republic of
       South Africa and the Government of the Federal Republic of
       Germany concerning the Project: Peace and Development Project,
       tabled in terms of section 231(3) of the Constitution, 1996.


    (b)      Explanatory Memorandum on the Exchange of Letters between
       the Government of the Republic of South Africa and the
       Government of the Federal Republic of Germany concerning the
       Project: Peace and Development Project.

    (c)      Exchange of Letters between the Government of the Republic
       of South Africa and the Government of the Federal Republic of
       Germany concerning Financial Cooperation in 2005, tabled in
       terms of section 231(3) of the Constitution, 1996.

    (d)      Explanatory Memorandum on the Exchange of Letters between
       the Government of the Republic of South Africa and the
       Government of the Federal Republic of Germany concerning
       Financial Cooperation in 2005.

18.     The following papers are referred to the Portfolio Committee on
    Finance and the Portfolio Committee on Trade and Industry:

    (a)      Exchange of Letters between the Government of the Republic
       of South Africa and the Government of the Federal Republic of
       Germany concerning the Project: Programme to Develop Markets for
       Business Development Services, tabled in terms of section 231(3)
       of the Constitution, 1996.

    b) Explanatory Memorandum on the Exchange of Letters between the
       Government of the Republic of South Africa and the Government of
       the Federal Republic of Germany concerning the Project:
       Programme to Develop Markets for Business Development Services.

19.     The following paper is referred to the Portfolio Committee on
    Agriculture and Land Affairs for consideration and report:


    (a)      Report and Financial Statements of the Commission on
         Restitution of Land Rights for 2005-2006 [RP 54-2006].


 20.    The following paper is referred to the Standing Committee on the
    Auditor-General for consideration and report:


    (a)      Activity Report of the Auditor-General for 2004-2005 [RP
    231-2005].

 21.    The following papers are referred to the Portfolio Committee on
    Education:


    (a)      Government Notice No 540 published in Government Gazette
         No 28719 dated 10 April 2006: Call for written submissions from
         stakeholder bodies and members of the public on the draft
         policy document: An addendum to the policy document, the
         National Certificate: A qualification at Level 4 on the
         National Qualifications Framework (NQF), regarding learners
         with special needs, in terms of the National Education Policy
         Act, 1996 (Act No 27 of 1996).


    (b)      Government Notice No 603 published in Government Gazette
         No 28806 dated 8 May 2006: Call for comment on the Further
         Education and Training Colleges Bill, 2006.

    (c)      Government Notice No 265 published in Government Gazette
         No 28657 dated 24 March 2006: Calling for the nomination of
         persons to serve as members on the Second Umalusi Council for
         General and Further Education and Training Quality Assurance
         for the period 8 June 2006 until 7 June 2010, in terms of the
         Act, 2001 (Act No 58 of 2001).


    (d)      Government Notice No 593 published in Government Gazette
         No 28790 dated 3 May 2006: National policy regarding further
         education and training programmes: Approval of Modern Greek as
         an additional subject to be listed in the National Curriculum
         Statement: Grades 10-12 (General), in terms of the National
         Policy Act, 1996 (Act No 27 of 1996) and the South African
         Schools Act, 1996 (Act No 84 of 1996).

22.     The following papers are referred to the Portfolio Committee on
    Environmental Affairs and Tourism:


      a) Government Notice No 385 published in Government Gazette No
         28753 dated 21 April 2006: Regulations in terms of Chapter 5,
         made in terms of the National Environmental Management Act,
         1998 (Act No 107 of 1998).


      b) Government Notice No 597 published in Government Gazette No
         28803 dated 5 May 2006: Draft Regulations relating to listed
         threatened or protected species, made in terms of the National
         Environmental Management: Biodiversity Act, 2004 (Act No 10 of
         2004).

      c) Government Notice No 598 published in Government Gazette No
         28803 dated 5 May 2006: Draft national norms and standards for
         the regulation of the hunting industry in South Africa, made in
         terms of the National Environmental Management: Biodiversity
         Act, 2004 (Act No 10 of 2004).

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister of Transport
 1) Report and Financial Statements of the Road Accident Fund (RAF) for
    2004-2005, including the Report of the Auditor-General on the
    Financial Statements for 2004-2005 [RP 34-2006].

COMMITTEE REPORTS

National Assembly

  1. Report of the Portfolio Committee on Finance on the Second Small Business Tax Amnesty and Amendment of Taxation Laws Bill [B 15 – 2006] (National Assembly – sec 75), dated 14 June 2006:

    The Portfolio Committee on Finance, having considered the subject of the Second Small Business Tax Amnesty and Amendment of Taxation Laws Bill [B15 – 2006] (National Assembly – sec 75), referred to it, and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the Bill without amendment.

  2. Report of the Portfolio Committee on Finance on the Small Business Tax Amnesty and Amendment of Taxation Laws Bill [B 14 – 2006] (National Assembly – sec 77), dated 14 June 2006:

    The Portfolio Committee on Finance, having considered and examined the Small Business Tax Amnesty and Amendment of Taxation Laws Bill, [B14 – 2006] (National Assembly – sec 77), referred to it, and classified by the Joint Tagging Mechanism as a Money Bill, reports that it has agreed to the Bill.

  3. Twenty-Third Report of Standing Committee on Public Accounts: Water Research Commission, dated 15 March 2006:

  4. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Water Research Commission for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  5. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

    1. CONCLUSION

      The Committee is of the view that no further interaction with the Accounting Authority of the Water Research Commission is necessary for the financial year under review.

      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  6. Twenty-Fourth Report of Standing Committee on Public Accounts: Umalusi Council for Quality Assurance, dated 15 March 2006:

  7. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Umalusi Council for Quality Assurance for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  8. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  9. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Umalusi Council for Quality Assurance is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  10. Twenty-Fifth Report of Standing Committee on Public Accounts: Sedibeng Water Board Qwaqwa, dated 15 March 2006:

  11. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Sedibeng Water Board Qwaqwa for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  12. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  13. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Sedibeng Water Board Qwaqwa is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  14. Twenty-Sixth Report of Standing Committee on Public Accounts: State President Fund, dated 15 March 2006:

  15. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the State President Fund for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  16. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  17. CONCLUSION The Committee is of the view that no further interaction with the Accounting Authority of the State President Fund is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  18. Twenty-Seventh Report of Standing Committee on Public Accounts: South African Institute for Drug Free Sport, dated 15 March 2006:

  19. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the South African Institute For Drug-Free Sport for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  20. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  21. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the South African Institute For Drug-Free Sport is necessary for the financial year under review. The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  22. Twenty-Eighth Report of Standing Committee on Public Accounts: Refugee Relief Fund, dated 15 March 2006:

  23. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Refugee Relief Fund for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  24. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  25. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Refugee Relief Fund is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  26. Twenty-Ninth Report of Standing Committee on Public Accounts: Umngeni Water Board, dated 15 March 2006:
  27. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Umngeni Water Board for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  28. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  29. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Umngeni Water Board is necessary for the financial year under review..

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  30. Thirtieth Report of Standing Committee on Public Accounts: Trans- Caledon Tunnel Authority, dated 15 March 2006:

  31. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Trans-Caledon Tunnel Authority for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  32. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  33. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Trans-Caledon Tunnel Authority is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  34. Thirty-First Report of Standing Committee on Public Accounts, Social Relief Fund, dated 15 March 2006:

  35. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Social Relief Fund for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  36. AUDIT OPINION The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  37. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Social Relief Fund is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  38. Thirty-Second Report of Standing Committee on Public Accounts: South African National Accreditation System, dated 15 March 2006:

  39. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the South African National Accreditation System for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  40. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  41. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the South African National Accreditation System is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  42. Thirty-Third Report of Standing Committee on Public Accounts: Rand Water Board, dated 15 March 2006:

  43. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Rand Water Board for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  44. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  45. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Rand Water Board is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  46. Thirty-Fourth Report of Standing Committee on Public Accounts: Rural Housing Loan Fund, dated 15 March 2006:

  47. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Rural Housing Loan Fund for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  48. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  49. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Rural Housing Loan Fund is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  50. Thirty-Fifth Report of Standing Committee on Public Accounts: Magalies Water Board, dated 15 March 2006:

  51. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Magalies Water Board for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  52. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  53. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Magalies Water Board is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  54. Thirty-Sixth Report of Standing Committee on Public Accounts: Namaqua Water Board, dated 15 March 2006:

  55. INTRODUCTION The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Namaqua Water Board for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  56. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  57. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Namaqua Water Board is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  58. Thirty-Seventh Report of Standing Committee on Public Accounts: Overberg Water Board, dated 15 March 2006:

  59. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Overberg Water Board for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  60. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  61. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the Overberg Water Board is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  62. Thirty-Eighth Report of Standing Committee on Public Accounts: CHIETA, dated 15 March 2006:

  63. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the CHIETA for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  64. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  65. GENERAL MATTERS

    The Committee finds it totally unacceptable that CHIETA did not respond to Parliament’s resolution of 2004. The Committee further requests CHIETA to supply a thorough explanation why the 60 days deadline was not met.

  66. CONCLUSION

    The Committee is of the view that, except for the aspects highlighted above; no further interaction with the Accounting Authority of the CHIETA is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  67. Thirty-Ninth Report of Standing Committee on Public Accounts: National Home Builders Registration Council, dated 15 March 2006:

  68. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the National Home Builders Registration Council for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  69. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

  70. CONCLUSION

    The Committee is of the view that no further interaction with the Accounting Authority of the National Home Builders Registration Council is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  71. Fortieth Report of Standing Committee on Public Accounts: FOODBEV SETA, dated 15 March 2006:

  72. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the FOODBEV SETA for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

  73. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will equally unqualified.

  74. GENERAL MATTERS

    The Committee finds it totally unacceptable that FOODBEV did not respond to Parliament’s resolution of 2004. The Committee further requests FOODBEV to supply a thorough explanation why the 60 days deadline was not met.

  75. CONCLUSION

    The Committee is of the view that, except for the aspects highlighted above; no further interaction with the Accounting Authority of the FOODBEV SETA is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

  76. Report of the Portfolio Committee on Foreign Affairs on the Principles and Guidelines Governing Democratic Elections and Standards and Norms for Elections, dated 13 June 2006:

  77. SADC PRINCIPLES AND GUIDELINES GOVERNING DEMOCRATIC ELECTIONS

The Southern African Development Community (SADC) Principles and Guidelines for Elections were adopted in Mauritius in 2004. They govern the conduct of elections in SADC member countries with an aim of enhancing transparency, credibility of elections, democratic governance to make sure that elections are free and fair and to create an environment in which elections result are accepted by those who are participating in the election. The main body of the principles and guidelines include inter alia the following:

   Full participation of the citizens in the  political  process  during
   elections.
   Freedom of association.
   Political tolerance.
   Regular interval  for  elections  as  provided  for  in  the  country
   constitution.
   Equal opportunity for all political parties to access State media.
   Equal opportunity to exercise the right to vote and be voted for.
   Independence of the judiciary.
   Impartiality of electoral institutions and voter education.

The principles are developed with an intention of encouraging the adherence to broad human rights principles and norms, which would create an environment of peace and political stability. They are not binding to any state or government, but are voluntary for all member countries. Thus, their implementation solely resides with the individual government or country and in compliance with the election standards and/or constitution of that country.

  1. SADC Norms and Standards for Elections

The SADC Norms and Standards for Elections are based on the Organisation of African Unity (OAU) or African Union Declaration on the Principles Governing Democratic Elections in Africa that was adopted at the 38th Ordinary Session of the Assembly of Heads of State and Government in

  1. They are also designed in accordance with the Universal Declaration of Human Rights. The main aspects of the norms and standards are the following:
    a) The recognition that proper elections should include  a  process
       in which voters are registered to vote and have a  right  to  be
       voted for.
    b) Voting would be secret.
    c) Individuals have a right to freedom of association and  free  to
       express themselves during elections.
    d) Adherence to multi-party democracy.
    e) Political parties must be treated equally, and have a fair share
       of resources  distributed  by  government  for  the  purpose  of
       elections.
    f) Equal  access  to  State  media  by  both  the  ruling  and  the
       opposition parties.
    g) Establishment of an Independent  Electoral  Commission  for  the
       preparation and conduct of elections.
    h) Transparent and Democratic Election process.
    i) Free and Fair Elections.
    j) Voter education.
    k) Political tolerance during election campaigns.
    l) Independent Judicial System in the form of courts to  deal  with
       election offences, appeals  and  petitions  and  post  elections
       legal issues.

The norms and standards seek to establish a regional barometer for elections in member countries. They also aim at buttressing the human rights standards of member countries in line with the AU and UN declarations and protocols.

  1. Recommendations

The following are recommendations arising from consideration of the above facts and issues relating to the SADC Principles and Norms and Standards:

    a) The SADC principles and norms and standards must  be  harmonised
       as opposed to having two sets of analogous election guidelines.
    b) The central pillar should be to foster the  application  of  one
       single elections barometer for member countries.
    c) Parliament must adopt both the SADC  principles  and  norms  and
       standards as  outlined  with  the  proviso  that  they  will  be
       harmonised.

The Committee feels that there are no necessities to change our current norms and there’s no need for these to be harmonised with other election principles.

There is a call for SADC to have one election observation-monitoring tool.

Report to be considered.

  1. Report of the Portfolio Committee on Foreign Affairs on the Comoros Presidential Elections: SA Observer Team, dated 12 June 2006:
  2. INTRODUCTION • Within the framework of the national reconciliation process coordinated by the AU and in response to the request of the Comorian authority, the international community deployed observers to assess the conduct of the Presidential Elections of 14 May 2006 in the Comoros.

    • In pursuance of the Peace and Security Council decision taken at its 47th Session held in Addis Ababa, Ethiopia on 21 March 2006, the Peace and Security Council requested the African Union Commission to coordinate the efforts of the AU partners in the Comoros in order to facilitate the smooth holding of the election process.

    • South Africa and the African Union (AU) have been pivotal in securing the first round of elections (Primaries). This task emanates from the engagement by President Mbeki as well as Minister Dlamini Zuma in her capacity as Chairperson of the Countries of the Region on the Comoros.

    • In terms of the Union Constitution of Comoros, the position of President rotates every 4 years amongst the three Islands (Grand Comoros, Moheli and Anjouan).

  3. COMPOSITION DELIGATION A delegation of 10 members, consisting of five MPs, namely, Mr. DJ Sithole, Ms. M Maunye, Ms. A Van Wyk, Mr. P Smith, Mr. A Steyn and Mr. F Kgodumo of the Youth Commission, Mr. A Mali of the South African chapter of ECOSSOC and officials of DFA (Department of Foreign Affairs), Amb. C Seleka, Mr. S Mhlana and Ms. M Kekana arrived on the 23 April 2006 in the Comoros.
  4. PROGRAMME • Ambassador Mabeta of South Africa introduced the delegation to Minister Madeira, the Political head of AMISEC and

    • Ambassador Mouraad of the AU,

    • The Military leadership of AMISEC, Col Sibanyoni and Col Schoeman.

    • The delegation was briefed on the general political situation in the Comoros and the expectations of AMISEC given the weaknesses discussed in the body of this report.

  5. MEETINGS WITH STAKEHOLDERS

  6. Union President, Mr. Azali Asoumani
  7. Minister of Foreign Affairs
  8. President of Grand Comoros, Mr. Abdou Soule Elbak
  9. President of Moheli, Mr. Faull
  10. President of Anjouan, Mr. Mohamed Bacar
  11. Candidates, AA Sambi , M Djannfari and I Halidi
  12. The Constitutional Court
  13. International Community
  14. All three Island CIECs (Comoros Island Elections Commissions) and the CNEC (Comoros National Elections Commissions).

  15. RESULT OF THE PRIMARY ELECTIONS, 16 APRIL 2006, IN ANJOUAN On 16 May 2006, Primaries were held with 13 Presidential candidates from Anjouan contesting the elections. The Primaries determine the top three candidates that then contest the National President Elections. The result of the Primaries on Anjouan was:
A Sambi 26%
M Djaanfari 14.44%
I Halidi 14.30%

4.1. Evaluation of the 1st Round of Primary Elections in Anjouan 16/04/06

   Irregularities were noted in the following voting stations:

     i) Nyumakele Region
          -Voting Station of Ongojou 1
          -Voting Station of Mirondroni
     ii) Sima Region
          -Voting Station of Nindri
          -Voting Station of Nindri 2


   Delays in the delivery of election material was noted as one  of  the
   critical weaknesses of CNEC as the late arrival of material  resulted
   in NyuMakhele region’s voting stations opening as late as 13h00.  Due
   to the late opening and other delays, some stations were  allowed  to
   go beyond the 18:00 closing time.

   Sudden changing of polling station presidents resulted in  voters  in
   the affected areas refusing to vote.


  The International Community and AMISEC were also criticized.  It  was
   noted that AMISEC personnel were not in every voting station  despite
   explanations that the Military was efficiently deployed and that they
   were mobile to deal with any  difficulties  within  10  minutes.  The
   expectation remained that AMISEC are required to be placed  at  every
   poling venue.  AMISEC was specifically pressured  to  take  over  the
   elections from the CNEC, as people felt nervous with the  performance
   of the electoral body.


  It was noted that electoral officials in Anjouan gave in to political
   pressure and flaunted CNEC procedures.


  The delegation was briefed about attempts from a certain  section  of
   the political spectrum of the Comoros, arguing for the  annulment  of
   the elections due to perceived irregularities in the above  mentioned
   regions and voting stations. All three Island CIECs raised a  concern
   regarding the non payment or late payment of accounts from  the  side
   of CNEC.


  During the first week of  the  delegation’s  visit  in  the  Comoros,
   several events took place on  the  Island  of  Moheli  that  had  the
   potential to create uncertainty on the ground.  The first was related
   to a march by the military and the second with a strike action at the
   Island’s harbor. Both these issues were addressed with  the  relevant
   role-players and steps were agreed upon to address the situation  and
   ensure that no repetition of it takes place.

4.2. Corrective steps to remedy the identified weakness for the upcoming 2nd round of Union Presidential elections

   A workshop was held with CNEC, all three CIECs,  IEC,  Observers  and
   AMISEC leadership to work through identified problems  and  agree  on
   corrective  actions  to   be   taken   and   to   allocate   specific
   responsibilities to individuals and bodies.


   The following recommendations came out from the workshop:
     • Increase the Military Component of AMISEC,
     • Increase Civilian Observers and improve their visibility,
     • Appointment of Voting Station Staff to be done in time,
     • IEC to train all election Staff,
     • All election material to be dispatched  in  time  by  CIEC  with
       AMISEC securing the material,
     • Preparations of material to all voting stations to also be  done
       in time,
     • IEC and Observers be deployed in time,
     • Arrangements are made between UNDP, CNEC and the three CIECs  to
       address the late payment of accounts and to ensure that it  does
       not happen again.
  1. ELECTION DAY

Preliminary results of the Presidential Elections of 14 May 2006.

The preliminary results for the Presidential elections held on 14 May 2006, was issued on 16 May 2006 by the Minister of Interior, who is also in charge of the elections. The Constitutional Court will issue the official announcement of the results no later than Thursday, 18 May 2006.

The following are the summarised preliminary results for the autonomous island of Grande Comoros, Anjouan and Moheli:

Candidate Grande Moheli Anjuoan Total
  Comoros      
Sambi 64,35% 74,72% 45,70% 58,28%
Halidi 29,50% 17,86% 27,65% 28,01%
Djaafari 6,15% 8,43% 26,65% 13,72%
  1. POST ELECTIONS

    • The AU and International observers issued a statement on 16 May 2006 declaring the elections free, fair and transparent. The SA/AU observers were deployed to the three islands to cover all the 624 voting stations. Three members were deployed in Moheli, five members in Anjouan and five members in Grand Comoros.

    • Other observers come from the Francophone, Arab League, UNDP, Indian Ocean Commission, France, China and the USA.

    • The voting process was conducted smoothly in almost all voting stations. There were isolated incidents of intimidation against some electoral officials and attempts to fraudulently cast votes by using forged ballot papers. The general observation from all observers was that there were no acts of violence and that the general conduct of the Comorian people was commendable.

    • Errors on the voters roll were noted. One voter card number was used for up to five different voters and this opened the voters roll to manipulation.

    • The SOMA agreement tasked AMISEC with the responsibility of distributing the voting material to all voting stations. Voting started slightly late in some of the voting stations, with a few voting stations opening very late due to inaccessibility and late delivery of materials.

    • In all voting stations were officials, party agents for each candidate and a member of the AMISEC. It is important to note that certain voting stations had no AMISEC presence but a contingency plan was devised whereby AMISEC patrolled around these areas.

    • AMISEC was also tasked with the rollback of all voting material including envelopes with the results, for each island, destined for the Constitutional Court.

  2. GENERAL OBSERVATIONS

    • Daily meetings were held between members of AMISEC, CNEC and the international community to discuss matters regarding election preparations and to overcome anticipated problems that might arise during the elections.

    • Training of electoral staff was minimal due to poor logistical planning.

    • Lack of Professionalism and poor communication was noted in some members of the IEC.

    • The question of how South Africa’s Institutions relate to each other when they are on deployments outside the country must be discussed. The approach adopted on the deployment of extra troops from RSA to the Comoros is a critical point in hand. The military informed all stakeholders in the Comoros and international community about the 850 troops to be deployed by RSA just before the elections. It was the view of the RSA Diplomats that the matter was best placed between the AU and the RSA Capital and it should not be discussed in the AMISEC planning meetings. This view was not shared by AMISEC and the matter became a source of tension.

    • The SABC was on the ground and they were unable to be assisted effectively by the AMISEC Media office. However, with the arrival of the Beeld journalist it was a different case. She was picked up and dropped at the airport by AMISEC and exclusive interviews were arranged for her.

    • AMISEC Political Head, Mr. Madeira and IEC expert, Mr Steve Ngwenya confused the role of observers. In their view the IEC will be responsible for the deployment of AU, SA and other observers. They wanted observers to roll out and roll back voting materials and that observers should, together with supervisors, do trouble shooting during Election Day. After intense debate it was agreed that observers should be allowed to observe elections as per the normal guiding principles of observations.

  3. RECOMMENDATIONS

    • Need to financially capacitate CNEC and CIEC’s to be able to independently perform their duties in future. • Intensive training and skills transfer to CNEC and CIEC’s. • Restructuring and depolarization of CNEC and CIEC’s and the Constitutional Court. • South Africa to consider assisting in the retraining of the Comoros Security forces. • Reevaluation of the voter roll and Voters Cards and the improvement of its management. • The AU mandate to be clearly spelt out to the Observers special envoys. • The SA DFA needs to clarify its responsibilities to the South African Observer Teams. • The Institutional relationship to be clarified and streamlined, (this relates to behavior that has the potential to undermine the Diplomatic representatives of RSA, not limited to this mission).

    • Institutional mandates in any mission to be communicated clearly to all involved so as to avoid the problems noted above.

  4. Report of the Portfolio Committee on Foreign Affairs on the South African Parliament delegation to the 19th Plenary Assembly of the Southern African Development Community - Parliamentary Forum, dated 13 June 2006:

  5. INTRODUCTION

The 19th Plenary Assembly of the Southern African Development Community- Parliamentary Forum (SADC-PF) took place in Gaborone, Botswana from 8 to 17 December 2005. The theme of the Plenary Assembly was, “ Redefining Strategic Priorities of the SADC Parliamentary Forum to Mainstream Parliamentary Dimensions to Regional Integration”. The following Members of Parliament (MP’s) represented the Parliament of South Africa at the Plenary:

  • The Hon. F Hajaig, MP (Head of the Delegation)
  • The Hon. Mr E Sogoni, MP
  • The Hon. Mr W J Seremane, MP
  • The Hon. D J Sithole, MP
  • Two Support Staff, Ms L D Lenzie (legal advisor) and Mr  J  Mokoena
    (researcher), assisted the delegation.

The Presiding Officers and representatives of the following twelve (12) of the thirteen member Parliaments of the Southern African Development Community Parliamentary Forum attended the Committee meetings and Plenary Sessions, viz.:

Angola Mozambique Botswana Namibia Democratic Republic of Congo South Africa Lesotho Swaziland Malawi Zambia Mauritius Zimbabwe

The Parliament of the United Republic of Tanzania was not represented as it was dissolved pending the outcome of the Presidential and Parliamentary elections that were taking place in the country.

  1. OPENING SESSION

The following dignitaries addressed the opening session:

  • The Speaker of the National Assembly of Botswana, the Honourable
    Patrick Balopi (MP).
  • The Chairperson of the SADC-PF and Speaker of the Zambian
    Parliament, the Honourable Amusaa Mwanamwambwa (MP).
  • The President of the Republic of Botswana and Chairperson of the
    Southern African Development Community (SADC), His Excellency Mr
    Festus Gontebanye Mogae.
  • The Speaker of the National Assembly of the Kingdom of Swaziland,
    the Honourable S’gayoyo Magongo (MP).

2.1. Welcoming Address by the host Speaker, the Hon Patrick Balopi The host Speaker, the Hon P. Balopi welcomed delegates to Gaborone, Botswana. The Speaker highlighted the historical commitment of Botswana to the ideals of SADC as evidenced by the precursor to SADC, the Southern African Development Coordinating Conference (SADCC), which was conceived in Botswana. Botswana first hosted the plenary assembly in March 1998 when the Forum was still very much in its infancy and shortly after the election of its first executive committee in Cape Town in 1997. The active participation of the Parliament of Botswana in the work of SADC-PF is a contribution that the country makes to the region and the African continent. The continued contribution of Botswana Members of Parliament in the Parliamentary Forum is immense with most of them holding positions in the Executive and Standing Committees. In September 2005, Botswana hosted a SADC-PF regional seminar on Electoral System Design. The government of Botswana is committed to the historical mission of SADC-PF.

2.2. Welcoming Address by the Chairperson of SADC-PF, the Hon. Amusaa Mwanamwambwa

In his address to the opening session, the Chairperson of the Parliamentary Forum stressed the need for closer co-operation and collective decision-making on matters that affect citizens of the region. He emphasised the importance of Parliamentarians to participate in regional politics, development and integration, which could be enhanced by the creation of a SADC Parliament. It was pointed out that the 19th Plenary Assembly would, among other issues, develop a new Five-Year Strategic Plan. The Chairperson congratulated SADC Heads of State and Government for raising the threshold of women representation in decision- making structures, increasing it from 30% to 50% in line with the African Union’s target.

The SADC-PF will contribute towards the realisation of the goals envisioned in the Regional Indicative Strategic Development Plan (RISDP), as adopted in Tanzania. Through the proposed SADC Parliament, the objectives and plans of SADC can easily transcend national boundaries of countries. The Heads of State and Government, in approving the establishment of the SADC-PF foresaw the Forum as a nucleus of a future regional Parliament, unfortunately the role of parliamentarians in regional co-operation and integration remain undefined. The envisaged role of a SADC Parliament is primarily that of bringing parliamentary dimension to regional co-operation and integration.

The coming into being of the Pan-African Parliament (PAP) in 2004 is a welcomed development and regional Parliamentary Forums are necessary for the PAP to fulfil its functions as outlined in its establishing protocol. The Chairperson of SADC must built consensus around the idea of establishing a SADC Parliament as a way of completing the building of a SADC community with all its constituent components, the Executive, Legislature and the Judiciary.

The Chairperson thanked the Botswana government for hosting the 19th Plenary Assembly of the Forum and for the generous hospitality extended to delegates. He also thanked His Excellency, President Mogae for accepting the invitation to officially open the Plenary Assembly.

2.3. Address by the President of Botswana, His Excellency Mr. Festus Gontebanye Mogae

In his address, the President of Botswana acknowledged the valuable role played by the SADC Parliamentary Forum over the years in building regional consensus and capacity. He appreciated the role played by the Forum in setting benchmarks for the promotion of gender equality, fighting against HIV and AIDS, and observing elections in SADC member countries. It was noted that SADC Election Observation Missions will benefit from the Forum’s experience in observing elections and thus, closer cooperation is necessary.

The President noted that at the time when the SADC-PF was established in 1997, it was not considered necessary to establish a fully-fledged regional Parliament. The President assured the Plenary Assembly that the proposal to establish a SADC Parliament would receive careful consideration. The President also noted that Parliamentarians have a role to play in the RISDP and the Strategic Indicative Plan of the Organ on Defence, Politics and Security Co-operation among other SADC declarations and protocols.

2.4. Vote of thanks by the Speaker of the National Assembly of Swaziland, the Hon. S’gayoyo Magongo The Speaker of the National Assembly of the Kingdom of Swaziland, the Hon S’gayoyo Magongo thanked the President of Botswana for his address to the Plenary Assembly and his election to the chairpersonship of SADC. In his address, the Speaker posed key questions for consideration and noted that the Region is at a time where co-operation at regional level must necessarily give way to competition. He called upon the Legislative and Executive arms of government to work cooperatively and not to the exclusion of the other in order to improve the socio-economic, cultural, and political situation of the people.

The Speaker suggested that the Southern African Development Community (SADC) must ask itself the following questions:

  • What difference has it (SADC) made to the lives of women?
  • Has SADC made any difference to the status of women in the society?


  • What concerns do the children have in making it to a university?
  • What difference will SADC make to the people of the region?
  • What is it that will make people to be proud of being  citizens  of
    the region?
  • What are the  necessary  facets  of  a  fully  integrated  Southern
    African Development Community?

On behalf of SADC-PF, the Speaker suggested that, during the tenure of the President of Botswana, as the Chairperson of SADC, there will be co- operation between the Executive and the Legislative arms of government and this would be enhanced in order to achieve regional co-operation and integration.

  1. EXECUTIVE COMMITTEE MEETINGS – KEY ISSUES 3.1 Report of the Legal Sub-Committee

The Legal Sub-Committee met and considered the credentials of delegates to the 19th Plenary Assembly, as prescribed in Article 6 (3) of the Constitution of SADC Parliamentary Forum. The Committee made the following observations and reported that:

   a) The Parliament of  Tanzania  was  not  represented,  due  to  the
      pending general elections that were taking place in the country.


   b) An apology had been received from the Parliament of South Africa,
      whose  Speaker  is  currently  leading  the  African  Union  (AU)
      Election Observer mission in Tanzania.


   c) Namibia did not have a member from the opposition.


   d) Parliaments of Lesotho, Mauritius and South Africa did  not  have
      representatives   of   their    respective    National    Women’s
      Parliamentary Caucuses, due to the following:

The Committee also noted that the Chairperson of the Lesotho National Women’s Parliamentary Caucus is currently leading the SADC Parliamentary Forum Election Observation Mission in Tanzania. It further noted that, Mauritius is yet to constitute a National Women’s Parliamentary Caucus following the elections in July 2005, while South Africa sent an apology on behalf of the Chairperson of the Country’s Women’s Parliamentary Caucus.

It was noted that, most Parliaments had at least one-third representation of women and members from ruling and opposition parties in their delegations.

In addition, the Executive Committee adopted a report of the Legal Sub- Committee relating to Guidelines for Elections of Chairpersons of Standing Committees. The elections will be conducted in terms of the 2003 electoral process, which requires that:

   a) Signed nominations for candidates  should  be  submitted  to  the
      Secretary-General a day before the day of elections.


   b) Names of  duly  nominated  candidates  should  be  publicized  to
      committee members the day before elections.

   c) In electing office  bearers,  consideration  should  be  made  to
      gender equity and geographic spread of Member Parliaments.


   d) Election shall be by secret ballot.


   e) Outcome of elections would be  subject  to  ratification  by  the
      Plenary Assembly.

3.2 Report of the Chairperson

The Chairperson reported on the following issues:

  • The Office of the Chairperson made courtesy calls to the  Heads  of
    State and Government of Namibia, Botswana, Malawi and Zimbabwe.
  • The courtesy call to the Namibian Head of State took place  on  the
    14th July 2005.
  • The courtesy call on the Head of State of Malawi took place  on  22
    July 2005 under the  leadership  of  the  Hon  Duke  Lefhoko,  Vice
    Chairperson of SADC-PF.
  • The courtesy call delegation to meet the Head of State of  Botswana
    included the Chairperson, Vice Chairperson (Speaker of the National
    Assembly of Botswana) and members of SADC-PF in Botswana.
  • The courtesy visit to  President  Robert  Mugabe  of  Zimbabwe  was
    carried out in terms  of  a  decision  made  at  the  17th  Plenary
    Assembly and 18th Plenary Assembly.
  • The main purpose of the courtesy calls was for SADC-PF to  be  more
    inclusive by  involving  parliamentarians  in  its  structures  and
    programmes.
  • During the visits, the Parliamentary Forum requested the  Heads  of
    State and Government to consider establishing the  SADC  Parliament
    under article 9 (1) of the Treaty, which establishes core organs of
    SADC.
  • The establishment of the SADC Parliament  would  allow  Members  of
    Parliaments to be involved in SADC  matters  through  a  formalised
    legislative arm of SADC.
  • During the courtesy calls, the Presidents  of  Namibia  and  Malawi
    expressed support for the  establishment  of  SADC  Parliament,  of
    which the  Presidents  of  South  Africa  and  Zambia  had  already
    expressed support for the establishment of a SADC Parliament.
  • The Heads of State and Government of Mauritius,  Angola,  Tanzania,
    and DRC were not visited.
  • The Vice-Chairperson of SADC-PF also paid a courtesy visit  to  the
    Hon Prof Ali Nouhoum Diallo, Speaker of the Economic  Community  of
    Western African States (ECOWAS) Parliament in which it  was  agreed
    that the two bodies will work together.

3.3 Report of the Secretary-General

The report highlighted the following key points: • The institutional development, preparatory work on the development of a new Five-Year Strategic Plan, support to policy organs, relations with SADC, networking and participation at international parliamentary conferences. • The actual implementation of the activities which are expected to be hosted by the different member parliaments will be subject to consultation with the respective Parliaments to address issues of cost sharing, sitting calendars and local expectations, and other issues. • The following are some of the issues that should be considered for incorporation in the work plan:

         i) Knowledge and information  sharing  and  capacity  building
            initiatives  on  parliamentary  reforms  to   enhance   the
            independence and financial autonomy of Parliamentary Forum.


        ii) Engagement with the PAP processes, including SADC caucus in
            the PAP.
       iii) Conscientisation of National Parliaments  on  the  work  of
            SADC-PF  and  the  establishment  of   permanent   feedback
            mechanisms  between  parliamentary   forum   and   national
            Parliaments.

3.4 Report of the Treasurer

The following key points were made:

  • The Committee noted that the audit for the financial statements for
    the year ended 31st March 2005 was conducted in July 2005.
  • The Committee congratulated the Office of the Secretary General for
    this record.
  • The Committee also noted the management accounts  reported  on  the
    results for the six months ended 30th September  2005  with  budget
    figures  representing  that  period  and  that  the  budget  needed
    rationalisation.
  • The audited  donor  funded  programmes,  accountability  statements
    provided in the report were noted and the Office of  the  Secretary
    General was congratulated for the good  performance  and  auditors’
    opinion.
  •  The  Executive  Committee  considered  the  application  for  bank
    overdraft and Internet banking facilities, which was agreed to  and
    concluded with the Forum bankers, Nedbank Namibia Limited.
  • The Forum has an overdraft access of up to N$500 000.
  • The arrangements regarding  Internet  banking  facilities  will  be
    extended to the second bankers of the Forum, Standard Bank.
  • Only nine out of the thirteen member Parliaments paid their  annual
    mandatory contributions.
  • The member Parliaments that are outstanding in  their  contribution
    should pay soonest.
  •  The  increment  of  annual  mandatory  contribution   per   member
    Parliament of R850 000 will take effect from 1st April 2006.
  • The staff compliment in the Office of  the  Secretary  General  has
    been increased with diverse nationalities and addressed the  gender
    question through new staff recruitment.
  • In August 2005, the Executive Committee reviewed the  threshold  of
    R2 000  000  for  the  purchase  of  the  Secretary  General’s  new
    residence to R2 500 000 to accommodate  transfer  costs  and  other
    costs.
  • The new residence of the Secretary General was acquired at  R2  340
    000, including transfer costs realising a saving of R160 000 on the
    approved budget of R2 500 000 and the Secretary General  has  taken
    occupation of the residence.
  • The old  residence  of  the  Secretary  General  was  renovated  to
    increase its market value from R1 500 000 to 1 775 000  and  estate
    agents have been commissioned to sell the property.
  • The preparations for the 10th Anniversary of the  SADC-PF  in  July
    2006 are underway and the Treasurer should constitute  and  head  a
    committee to consider activities for the anniversary celebrations.
  • The Committee should include representatives of  the  host  country
    and the Clerk of the Country hosting the headquarters and the Clerk
    of the Country that will host the 20th Plenary Assembly.
  • All member Parliaments shall participate in the  financing  of  the
    activities of the 10th Anniversary.
  1. STANDING COMMITTEES

4.1 Committee on Democracy, Gender and Conflict Resolution/Peace- building

The Committee considered the proposed new name of the Committee and agreed that it will, henceforth be, the Committee on Democratisation, Governance and Gender Equality. The Draft Strategic Plan for the next five years 2006-2010 was also adopted, aimed at the following strategic objectives:

(i) Effective implementation of regional integration programmes. (ii) Improving institutions of democratic governance in the SADC region. (iii) Increased Professional performance. (iv) Strategic partnerships and alliances established for parliamentary cooperation.

The following Programme Areas for the Committee were adopted:

(i) Elections and Electoral Systems: This will include elections observation in order to keep a watching brief on the proper conduct of elections. (ii) Gender: The adoption of protocols to accelerate gender equality in SADC (iii) Strengthening Institutions of Democracy and Good Governance: working with institutions of civil society, political parties, and anti-corruption bureaus in order to strengthen their capacities. (iv) Developing Best Practice and Policy Frameworks through Parliaments: such practices should also be aimed at mitigating and combating HIV and AIDS.

4.2 Committee on Inter-parliamentary Co-operation

The Committee acknowledged the observer status of the Forum in Inter- Parliamentary Union (IPU) and Commonwealth Parliamentary Association (CPA) as a desired achievement. It also acknowledged the collaborative mechanisms that have been established with New Partnership for Africa’s Development (NEPAD) and Association of West European Parliamentarians for Africa (AWEPA).

The Secretariat was mandated to ensure that reports on Inter- Parliamentary co-operation activities are circulated to all member parliaments quarterly. It was agreed that Members attending SADC-PF meeting must present summary reports of the meeting to be discussed by their Parliaments.

The Committee noted the need to increase advocacy work in individual Parliaments in order to increase awareness of the Forum’s activities. The Committee also acknowledge the Forum’s newsletter as a tool of information sharing. With regard to the Parliamentary Leadership Centre (PLC) Contributions, the Committee encouraged Members to appeal to their Parliaments to pay the contribution, as this is a requirement by the donor, the Africa Capacity Building Foundation (ACBF). The Committee raised concern on the recommendation that three members of the Committee be part of the Leadership Centre – Advisory Board but the Executive Committee approved only two (2).

The committee recommended that the Chairperson of the Forum be part of the PLC Advisory Board since the committee will be responsible for the PLC. It also acknowledged that the Strategic Plan was well tailored, but raised concern over capacity to realistically implement the programmes suggested. It also received a submission from the Southern African Development Community Organisation of Public Accounts Committee (SADCOPAC) for the structure to be made part of SADC-PF. SADCOPAC is a body of Parliamentarians of the SADC region. The Committee recommended that SADCOPAC’s request to be part of the Forum be submitted to the Plenary Assembly.

4.3 Committee on Regional Integration

The key issues, which were noted and discussed by the committee included:

• Visa restrictions:


     o  Bilateral   negotiations   regarding   eliminations   of   Visa
       requirements among  SADC  Member  States  has  resulted  in  the
       scrapping of Visa restrictions between Swaziland and Mozambique,
       and between Angola and Namibia.
     o It was also noted that Visa negotiations  between  some  of  the
       SADC Member States were continuing.
     o The treatment of Members of Parliament at South African Airports
       has not improved and this needs to be addressed.
     • New Strategic Plan, 2006 – 2010:
     o The Committee considered the Draft Strategic Plan including  its
       terms of reference and objectives.
     o It resolved that the strategic plan be adopted.
     • SADC Protocol:
     o The Committee welcomed the SADC Protocol on the Facilitation  of
       Free Movement of Persons.
     o It proposed that a workshop be convened to discuss the  protocol
       as an instrument to facilitate regional integration.
     • Relationship between SADC and SADC-PF
     o The Committee recommended that  SADC  pronounce  itself  on  the
       relationship between the Forum and SADC and the  status  of  the
       Forum thereto.
     o The Committee’s  view  was  that  the  pronouncement  will  help
       clarify  the  issue  of  a  regional  Parliament  and   regional
       integration.
     o The election observation instruments by SADC and SADC-PF  should
       be synchronised.
     o The Committee recommended a mechanism to include issues of SADC,
       SADC-PF and PAP in the school curriculum across the region.
     • Transboundary Natural Resources Management (TNRM) Initiatives:
     o The Committee noted the TNRM meetings that took place in Angola,
       Namibia and Zambia.
     o The Committee  recommended  that  information  on  transboundary
       projects be shared among member Parliaments and  that  the  TNRM
       initiatives be put on the Regional Cooperation  and  Integration
       agenda.
     • RISDP, NEPAD and Millennium Development Goals
     o The Committee has noted the submission by the Honourable  Gamboa
       to integrate the Regional Indicative Strategic Development  Plan
       (RISDP), New Partnership for Africa’s  Development  (NEPAD)  and
       the Millennium Development Goals (MDG’s) into its agenda
     o The Committee approved the integration of RISDP, NEPAD and  MDGs
       as proposed since this will guide  the  committee’s  development
       and integration agenda.
     • Poverty in the region
     o Majority of the people in the SADC region live below the poverty
       datum line surviving on US$1 per day.
     o The Committee proposed that poverty be a standing agenda item on
       its agenda.
     o Further recommended  that  SADC  should  rely  on  its  internal
       resources  instead  of  foreign  assistance  when  dealing  with
       poverty.

4.4 Committee on HIV and AIDS

The Committee made the following key points:

     • The Committee considered country presentations on the role  that
       parliamentarians and governments  play  in  addressing  HIV  and
       AIDS.
     • The Committee noted that Namibia has failed in  two  consecutive
       years to present a country presentation.
     • The country presentations focused on progress made by countries
     • The Committee noted the following:
           o The Secretariat did not keep contact with  the  Chairperson
             of the Committee on matters pertaining  to  activities  and
             decisions that need to be taken on behalf of the Committee.
           o Food and nutrition are critical to people living  with  HIV
             and AIDS
           o The  efficiency  of  stand-alone  HIV  and  AIDS  Portfolio
             Committees  in  relation  to  infectious  diseases  in  the
             region.
           o The Forum has repackaged material  with  support  from  the
             United States Agency for International Development  (USAID)
             Namibia in the form of fact sheet.
           o A handbook on  HIV  and  AIDS,  Gender,  Human  Rights  for
             Members of  Parliament  has  been  developed  and  will  be
             validated by Member Parliaments before going to press.
                 • The Committee agreed to the following:
           o HIV and AIDS should  be  dealt  with  together  with  other
             infectious diseases.
           o The  interplay  between  HIV  and  AIDS,  Tuberculosis  and
             malaria should come out clearly in the Strategic Plan.
           o The handbook on HIV and AIDS, Gender and  Human  Rights  be
             circulated to members of the Committee for validation
           o The Forum and SADC should work  closely  to  synchronise  a
             regional response to the pandemic and regional programmes.
           o The Committee recommended that the Executive be lobbied  to
             strengthen  cross  border  HIV  and   AIDS,   Malaria   and
             Tuberculosis programmes and activities.
           o The Committee also resolved that the consultant develops an
             HIV and AIDS  Action  Plan  based  on  the  Strategic  Plan
             objectives and other relevant documents.

4.5 Committee on the Regional Women’s Parliamentary Caucus

The Regional Women’s Parliamentary Caucus (RWPC) made the following key points:

  • One of the objectives of the SADC-PF Regional Women’s Parliamentary
    Caucus mandate is to advocate and influence the  participation  and
    representation of women in elective political and  decision  making
    positions, including advocacy and lobbying.
  • The objective of the RWPC advocacy and lobbying  in  Zambia  is  to
    influence political parties and a broad range  of  stakeholders  to
    put in place mechanisms that will increase  women’s  representation
    in the Zambian Parliament to at least have 30% women.
  • The lobbying and advocacy mission to Zambia was conducted from  the
    5-19 August 2005.
  • The lobbying and advocacy mission was undertaken in  terms  of  the
    SADC Declaration on Gender Development and Norms and Standards  for
    Elections in the SADC region.
  • The SADC Declaration commits SADC countries to the  achievement  of
    at least 30% (this threshold has been increased) representation  in
    positions of power and decision-making by the year 2005.
  • In terms of the African Union (AU) Constitutive Act and Declaration
    and the August 2005 SADC Summit resolution, SADC countries are  now
    expected to achieve 50-50 representations of women and men.
  • The Committee resolved to actively promote the  50%  representation
    of women at parliamentary level.
  • The RWPC assessment  and  stakeholders  consultations  reveal  that
    Norms and Standards for  Elections  in  the  SADC  region  was  the
    reference document that informed the review of electoral laws.
  • The RWPC was concerned that most parties claim to have incorporated
    the SADC Declaration principles but this was not visible.
  • The Committee recommended the following:


      (a)    Awareness campaign about the importance of women’s
           political participation and representation at all levels of
           power and decision-making.
      (b)    Effective implementation and evaluation systems to track
           down progress on women’s empowerment in all spheres.
      (c)    Capacity development for women.
      (d)    Political parties to implement stated commitments on
           achieving gender equality and institute intra-party
           democratic processes to review the mainstreaming of gender
           equality.
  1. PLENARY SESSIONS – KEY ISSUES

5.1 Thematic Session of the Plenary Assembly The following presentations were made in line with the 19th Plenary Session theme” “Redefining Strategic Priorities of the SADC Parliamentary Forum to mainstream parliamentary Dimensions to Regional Integration”.

5.1.1 Address by the Deputy Executive Secretary of SADC, Engineer Joao Samuel Caholo

The address of the Deputy Executive Secretary covered progress and challenges in the region. According to the Deputy Executive Secretary, In 2004, real Growth Domestic Product (GDP) of the SADC region grew at the rate of 4.1% as compared to 3.2% in 2003. It was also observed that average economic growth of the region was below the average economic growth of the continent over the same period. This economic growth was due among other factors, peace and political stability obtained in the region, sound macro-economic reforms in the SADC member countries. According to crop production vulnerability assessment conducted in April/May 2005, 9.7 million SADC citizens will require food assistance.

The challenges facing the region include inter alia, peace and political stability in the Democratic Republic of the Congo, poverty, food insecurity, HIV and the AIDS pandemic, low rate of investment, and gender inequalities.

5.1.2 Presentation by Professor Max Essex of the Harvard School of Public Health

The presentation covered progress made in the development of vaccines and other interventions in Southern Africa. It recognised the need to conduct multiple trials with modern designs, international cooperation and regional expertise will be critical in this regard. The presenter advised that modern behavioural change is important to avoid the spread of the pandemic. An emphasis was placed on the provision of anti-retroviral drugs to those infected. It was also emphasised that Parliaments must be committed to fighting the spread of HIV and AIDS through legislative interventions and sharing of best practices.

5.1.3 Draft Strategic Plan for the Southern African Development Community Parliamentary Forum: 2006-2010 The Plenary Assembly reiterated its commitment to continue lobbying for the establishment of the SADC Parliament to foster regional cooperation and integration. The Plenary also agreed to develop mechanisms to deal with SADC matters, to facilitate monitoring and evaluation of the budget and programmes of SADC. A call was made for the acceleration of Intra- African trade to mitigate the unfavourable terms of the World Trade Organisation (WTO).

In addition, the Plenary Session approved the Parliamentary Leadership Centre and its work plan including the advisory board. The Plenary adopted the vision and mission of SADC-PF which were amended to read:

  • Vision:  ”A  delivery  focused,  people  centred  institution  that
    accelerates and promotes parliamentary  participation  in  regional
    decision making for the benefit of the citizens of SADC”.

  • Mission: “To facilitate  strategic  partnerships  within  the  SADC
    region,  promote  information  sharing,  initiate   and   implement
    projects that enhance regional integration  and  promote  effective
    and professional parliamentary practice”.

The Plenary Assembly also adopted the SADC-PF organisational structure as proposed by the executive committee.

The following four (4) strategic objectives contained in the draft strategic plan were adopted. These objectives are:

 (a)    Improved institutions of democratic governance in the SADC
              region.
 (b)    Effective implementation of Regional Integration Programme.
 (c)    Increased professional performance of Members of Parliament and
    parliamentary staff under the Parliamentary Leadership Centre
    (PLC).
 (d)    Strategic Partnership and Alliances Established for
              Parliamentary cooperation.

5.2 Policy Session of the Plenary Assembly

The Plenary Assembly also dealt with the following key issues:

     • The Plenary endorsed the PLC Advisory Board to be chaired by the
       Secretary General and will include members of the Forum.


     • Country Reports

Countries presented written reports highlighting progress in dealing with issues that the Forum has decided upon, covering the following issues:

     o The SADC principles and guidelines for democratic elections and
       women representation.
        o Support for Women’s Parliamentary Caucus.
     o The implementation of the SADC Parliamentary Forum Norms and
       Standards for elections.
     o Ratification of SADC protocols, treaties and legal instruments
       for purposes of regional integration and cooperation.
     o Steps taken to deal with the HIV and AIDS, including prevention
       and the fight against the pandemic.
     o Cooperation and participation in the Pan African Parliament
       activities and the African Union and the New Partnership for
       Africa’s Development.
 • HIV and AIDS:
     o The Plenary Assembly approved a Plan of Action for national
       Parliaments to address the continued increase in the rates of
       HIV infections.
     o The Plan covered prevention, treatment, discrimination, cultural
       practices and the Care of Orphans and Vulnerable Children.    (  Action Plan
     o The Plenary adopted a work plan for January-December 2006, which
       included inter alia, programmes on electoral reforms, norms and
       standards, the parliamentary leadership centre, advocacy and
       lobbying, gender issues, and women representation, poverty
       reduction and HIV and AIDS, peace and stability and site visits.


• Future Plenary Sessions:
     o The 20th Plenary Session will be held in Maputo, Mozambique, in
       June 2006.
     o South Africa has been requested to host the 21st plenary session
       late in 2006.


                        TUESDAY, 20 JUNE 2006

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

  1. Assent by President in respect of Bill

    1) Children’s Bill [B 70D – 2003] – Act No 38 of 2005 (assented to and signed by President on 8 June 2006).

  2. Fast-tracking of Bill

 (1)    The Joint Subcommittee of the Joint Programme Committee on 20
        June 2006 took the following decision:
        That—
        (1)   noting South Africa's international commitment to adopt
        special legislative    measures regarding the 2010 FIFA World
        Cup within specified timeframes;
        (2)   further noting that the 2010 FIFA World Cup South Africa
              Special Measures Bill [B 13–2006] which was introduced on
              6 June 2006 is to be split into separate section 75 and
              section 76 Bills;
        (3)   in accordance with Joint Rule 216(2) the two Bills upon
              receipt be fast-tracked by shortening any period within
              which any step in the legislative process relating to the
              Bills has to be completed, but subject to public
              participation in the process of the consideration of the
              Bills, in order for the Bills to be passed by both Houses
              before 31 August 2006;
        (4)   for this purpose the relevant NA and NCOP committees
              confer on the Bills; and
        (5)   the National Assembly committee finalises its
              consideration of the Bills by 31 July 2006 and the NCOP
              committee reports formally on both Bills in time for the
              approved deadline to be met by Parliament.
 (2)    In terms of Joint Rule 216(4) this decision must be tabled in
        both Houses for ratification.
  1. Bill returned to Executive
(1)    On 20 June 2006 the Speaker and the Deputy Chairperson, after
     consultation, referred the 2010 FIFA World Cup South Africa Special
     Measures Bill [B 13 – 2006], introduced in the National Assembly as
     a section 75 Bill on 6 June 2006, back to the Minister of Sport and
     Recreation, as it contains both section 75 and section 76
     provisions.
  1. Reintroduction of Bill
(1)    The Minister of Sport and Recreation


  2010 FIFA World Cup South Africa Special Measures Bill [B 13 – 2006
     (Reintroduced)] (National Assembly – sec 75) [Explanatory summary
     of Bill and prior notice of its introduction published in
     Government Gazette No 28593 of 10 March 2006.]


Reintroduction and referral to the Portfolio Committee on Sport and
Recreation of the National Assembly, as well as referral to the JTM for
classification in terms of Joint Rule 160.


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. Introduction of Bill (1) The Minister of Sport and Recreation

    a) Second 2010 FIFA World Cup South Africa Special Measures Bill
       [B 16 – 2006] (National Assembly – sec 76) [Explanatory
       summary of Bill and prior notice of its introduction published
       in Government Gazette No 28593 of 10 March 2006.]
    

    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.

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

COMMITTEE REPORTS

National Assembly and National Council of Provinces

  1. Report of the Mediation Committee on the Older Persons Bill [B 68B and B68D – 2003] (National Council of Provinces – sec 76), dated 14 June 2006:

    The Mediation Committee, having considered the Older Persons Bill [B68B and B68D – 2003] (National Council of Provinces – sec 76), as well as the papers referred to it, reports that it has agreed to a new version of the Bill [B68F – 2003 (Reprint)].

    The Committee notes with concern the technical errors that occurred in the processing and preparation of the printed version of the Bill in the National Assembly. The Committee recommends that the Presiding Officers investigate the reasons for the technical errors, and report to the Joint Rules Committee on measures to be put in place to avoid similar errors in future.

National Assembly

CREDA INSERT REPORT - Insert - T060620E-insert1 – PAGES 1507-1516