National Assembly - 25 October 2006
WEDNESDAY, 25 OCTOBER 2006 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:02.
Acting Speaker 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.
WELCOME TO FIFA DELEGATION
The ACTING SPEAKER (Mr G Q M Doidge): Order! I wish to acknowledge the presence in the gallery of the Fifa delegation and the Local Organising Committee for the 2010 Fifa World Cup. You are most welcome to our Parliament. [Applause.]
MEDIUM-TERM BUDGET POLICY STATEMENT
(Statement)
ADJUSTMENTS APPROPRIATION BILL
(Introduction)
The MINISTER OF FINANCE: Chairperson, Mr President, Deputy President, colleagues, Governor of the Reserve Bank – who I see accompanied by the chair of the Financial and Fiscal Commission but both independent - our friends from the Fifa delegation and the Local Organising Committee, hon members and friends, John Kani and Winston Ntshona have recently reunited to put on another run of that great play Sizwe Banzi is Dead.
Written by Athol Fugard, in collaboration with these two actors, the play tells of a young migrant worker who composes a letter to be sent to his wife. The story contrasts the cruelty of the pass laws and the desperation of migrant workers with the dreams and aspirations of people dressed up in their Sunday best, for a family photograph.
In the play, the strong character, Styles, describes his photo studio. He says, and I quote:
This is a strongroom of dreams. The dreamers? My people. The simple people, who you never find mentioned in the history books, who never get statues erected to them, or monuments commemorating their great deeds. People who would be forgotten, and their dreams with them, if it wasn’t for Styles. That’s what I do, friends. Put down, in my way, on paper the dreams and hopes of my people so that even their children’s children will remember …
[Applause.] Sizwe Banzi is Dead is set in 1971, at a time when apartheid was most rigid, and the gulfs between rich and poor, between black and white, were unrelenting. Today, 12 years into our democracy, we still have dreams beyond the world we know, and we still have mountains to climb in pursuit of fairness, justice and opportunity. But we have broken open that desperate strongroom of dreams; we are now living out our hopes and aspirations, writing laws that put people first, building institutions that respect people’s rights, constructing houses, creating jobs, and providing services.
Coming to the economic overview, South Africa is in the midst of its longest sustained economic expansion. Robust economic growth, supported by strong consumer spending and rising investor confidence, has created over one million jobs in the past three years. While unemployment remains our most pressing social and economic challenge, for the first time in a generation, the economy is creating jobs faster than new entrants are joining the labour force. Though it is too early to claim victory in the battle against unemployment, we can already see how growth and development work together to reduce poverty and improve livelihoods, and how the policy choices we made a decade ago are bearing fruit. The key challenges we face as a country are to sustain this growth, broaden participation and extend opportunities to all. As the Deputy President would say, it must be done through the Accelerated and Shared Growth Initiative for South Africa. We must strengthen our industrial capacity and deepen the quality of social development. We must accelerate growth and share its benefits.
In celebrating the solid performance of our economy, we must continue to be mindful that there are still too many South Africans who go to bed hungry, too many who stare at the fragile walls of their shacks and far too many for whom disease makes life a daily struggle.
In the past four years, our economy has expanded by an average of 4,2% a year, with growth reaching almost 5% last year. Some indicators of economic activity suggest that the economy may, in fact, be growing faster than the preliminary data suggests. But we know that more needs to be done. Sustained and broad-based growth depends on more rapid progress in our industrial sector, on export growth and trade performance, and on improving education, skills and productivity.
Allow me to reflect briefly on developments in the economy over the past five years. Co-ordinated fiscal and monetary policies have helped bring down inflation and interest rates to historic lows. Rising global commodity prices, solid growth in the domestic market, low interest rates in developed countries and continued inflows of foreign capital have created buoyant financial conditions and a favourable environment for investment. The expansion of the social security system has contributed to poverty reduction and reduced vulnerability of many households.
At the same time, real income tax relief for low and middle-income earners has raised disposable income. People have purchased more durable goods such as televisions, fridges, furniture and cars. We have seen an acceleration in consumer spending, an unprecedented rise in house prices – and steadily rising household debt, on the down side.
At the same time, many companies have taken advantage of the low interest rate environment and relatively strong currency to retool their businesses and to invest in new machinery and technology, to expand their businesses and grow their own businesses and job opportunities along with it.
Boosted also by rising public sector infrastructure spending, the construction sector has boomed, growing by 10,7% a year in each of the past three years. The pace of fixed investment has surprised many of the upstream input sectors. As a result, we are now experiencing periodic shortages of imported inputs like cement, steel and refined fuel. In some instances, these shortages have led to price increases. In others, we have seen imports meet excess demand. But, over time, these are the signals that lead to investment decisions and business expansions. Investment leads, in due course, to jobs, training, exports, earnings and further investment.
The supply side of the economy takes time to respond to rising demand. But the response is clearly under way – companies are increasingly confident that the present boom is not just a temporary surge, but represents a structural shift in our economic trend and prospects. So, for example, gross fixed capital formation has risen from 15% of GDP in 2002 to 18,4% in the first half of 2006.
Just as production takes time to respond to demand, so also domestic savings lag behind investment growth. As incomes have risen, and taking advantage of more favourable credit conditions, South Africans have chosen to spend rather than save. This has left much of the investment to be financed from foreign capital. While this is appropriate for a country at the level of development of our own, it does increase the potential risks to the economy. We are integrally linked to global financial markets and are therefore able to attract and retain foreign capital inflows, but we must also raise our export performance and savings rate over time.
Investment growth is projected to grow by about 10% a year to 2010. Though household consumption is expected to moderate, the economy is expected to record growth of about 4,5% next year, rising to about 5,5% by 2009. Inflation, as measured by the CPIX, is likely to rise further over the next six months, but should moderate thereafter, averaging 4,8% over the next three years.
Chairperson, I table before the House also the 2006 Adjusted Estimates of National Expenditure and the Adjustments Appropriation Bill. Allowed adjustments to the expenditure level include underspending from the previous financial year that is approved for spending in 2006-07, unforeseen and unavoidable expenditure, changes to state debt costs, and the allocation of amounts that were announced in the 2006 Budget but not yet appropriated to a specific Vote.
Key changes to the adjustments estimate include the following: R764 million is allocated for emergency funding in response to flood damage in Taung and the recent flood disasters in the three Cape provinces to cover repairs to roads, bulk infrastructure and housing. Amounts of R847 million and R80 million are allocated to Denel and Alexkor respectively.
Government’s initial equity in the proposed broadband telecommunications company, Infraco, and a further investment in the Pebble Bed Modular Reactor demonstration plant amount to R1,4 billion. Stop smiling, Alec, please. An amount of R372 million rolled over to the 2006-07 Housing Vote will contribute to financing the N2 Gateway housing project.
The adjustments budget also makes provision for the consolidation of Metrorail into the SA Rail Commuter Corporation, including operational losses of R180 million and R439 million to maintain the employee benefits of former Metrorail staff.
While total adjustments increase the expenditure level by R8,8 billion, the net increase in the budget is R1,5 billion, after taking into account declared savings and the application or use of the contingency reserve.
In February this year, we tabled a budget proposing an expenditure envelope of R472 billion. Taking account of changes in the adjustments budgets, total spending in the current fiscal year is projected to be R474 billion, up nearly R60 billion, or 14%, in comparison with our expenditure last year.
Coming to fiscal policy, next year, expenditure will again increase by about R60 billion, continuing the strong expansion in spending on public services that has been achieved since the start of the fiscal year on 1 April 2000. Over the Medium-Term Expenditure Framework period, non-interest expenditure will grow by 7% a year in real terms, and 7% after we have taken account of inflation, with capital spending increasing by 13% a year. Chairperson, this expansion in spending can be afforded, and in addition, we anticipate that the budget balance will be in surplus next year. The reason why we can afford to increase spending so rapidly is that we have created the fiscal space to do so. Firstly, by reducing borrowing, we have lowered our interest costs from 21% of our total spending in the 1998-99 fiscal year to 11% in this year. [Applause.]
By so doing, we have released resources for spending on service delivery. In fact, the number over the period since 1996 amounts to R102 billion. Secondly, through reform of our tax policy and administration, we’ve been able to broaden the tax base, bringing more people into the tax net. As a result, tax revenue has continued to grow despite generous income tax relief.
Fiscal space provides government with an array of options: we can spend more; we can provide more tax relief; we can invest in infrastructure; and we must do more to improve savings. More importantly, it provides a firm platform upon which we can reform our economy to ensure that we broaden opportunities to those still marginalised.
In the first six months of this year, tax revenue grew by 19,1% over the same period last year. Strong revenue growth reflects rising consumption, robust company profits and healthy employment growth - features that have been with us for almost four years. I took time this morning to explain to some journalists that it is not in the interests of the Finance Ministry or any part of it to underestimate what our revenue take will be. We have a complex system. The times when the Commissioner for Revenue Services and the Director-General of the Treasury are at each other’s throats in fundamental disagreement it is about revenue estimates. Then we add in the Deputy Governor of the Reserve Bank and the Statistician-General, and allow them to talk about this issue.
Just to ensure that there is political oversight, the Deputy Minister of Finance chairs this arrangement. That’s how we arrive at the numbers, so there is no thumb-sucking, because I know that there is a popular view out there that if you underestimate, your forecasts are poor, then the SA Revenue Service looks good. But it is not in our interests to do that. So we have this complex system that actually manages the debate in the way that it happens.
For the present fiscal year, the main budget revenue is projected to be about R20 billion higher than budgeted. That is the main budget revenue. The deficit for the present fiscal year is projected to be 0,4% of GDP, down from the 1,5% budgeted for in February 2006.
Again, I pause to say that we added, in the adjustments estimates, significant amounts of new spending. Notwithstanding that, because of the revenue overrun, the deficit is lower than what it was when we announced the deficit at the start of this year. Revenue growth is again expected to outpace spending growth next year. We anticipate a budget surplus of about 0,5% of GDP in 2007-08, putting the public finances on the strongest footing, Mr President, that this House has ever contemplated. [Applause.]
Our fiscal stance contributes to overall savings at a point when there is a considerable gap between domestic savings and investment. It assists in containing consumption expenditure at a time when both the balance of payments and the inflation trend indicate the need for moderation. Furthermore, it adds to the fiscal space, providing a solid platform for increased spending on public infrastructure and the development of skills. And, most importantly, it provides us with the room to respond when economic conditions become less favourable.
As the capacity of the public sector to spend on infrastructure improves and as development programmes gain momentum, the budget balance is projected to revert to a moderate deficit by the end of the forecast period.
Regarding tax policy, the revenue performance introduces a series of very difficult policy choices. Government has to ascertain what part of the revenue overrun is merely cyclical – strong metals prices, therefore the mining houses pay us additional taxes; a strong rand, so we import all manner of goods and our trade tariffs carry the day, given high commodity prices and consumption - and what part is likely to recur as part of the base-broadening efforts of the SA Revenue Service.
Undoubtedly, if you have, as we had last year, 540 000 new jobs, there are 540 000 families at least that have wage packets that they didn’t have previously. So spending continues and, through VAT and a variety of other means, structural changes in the economy add to the amount of revenue available.
Clearly, in an environment like this, it does not make sense to spend once- off revenue on items that are likely to recur. Similarly, it does not make sense to provide tax relief in anticipation of revenue that may not be sustainable. Our policy must be guided by the need to sustain growth in both the medium and long term, to contribute to an environment for robust investment, improved trade performance, and rising domestic saving.
In May this year, a task team was appointed to investigate a possible additional tax on extraordinary profits generated by the liquid fuel industry, in particular the synthetic fuel industry. The task team has presented a comprehensive report within a very short period. We will, in the course of November, publish this for comment and make announcements thereon in the Budget next February.
The recent publication of the revised Mineral and Petroleum Resources Royalty Bill provides greater certainty and contributes to an improved investment climate in the resources sector. Let me say that, with the support of the Minister of Minerals and Energy, we are deeply concerned about the miners trapped underground, as we speak.
Tax reforms over the medium term will build upon past base-broadening initiatives, maintain and enhance the fairness of the tax system and support the growth and employment creation efforts of government.
Let me turn to the Medium-Term Expenditure Framework and public spending. Over the next three years, we are in a position to add a further R80 billion to the spending plans tabled in February. The major priorities for additional spending are the following. I shouldn’t talk about the first one – Mr Jordaan may be shocked. It is for investment in stadiums and public transport to ensure a successful 2010 Fifa World Cup. [Applause.]
Secondly, there will be stepped-up investment in the built environment in the form of housing, electricity, water, sanitation and community facilities. [Applause.] Thirdly, we aim to contribute to improved economic efficiency through investment in roads, rail, research and development, energy and skills development. [Applause.] Fourthly, we will be improving the quality of education, health and welfare services through additional resources and targeted interventions to improve public administration. [Applause.] Turning to the first of these - the 2010 Fifa World Cup - the hosting of the World Cup provides us as a country and the region with a once-in-a- generation opportunity to showcase our land and our hospitality in a sporting festival that knows no bounds. Hosting this event will require the effort of all South Africans, strong partnerships between communities, government and the footballing fraternity, and joint action by the public and private sectors.
The Medium-Term Expenditure Framework, which we’ll formally table in Parliament in February next year, the 2007 MTEF, will run from the 1st of April next year until 31 March 2010. That MTEF has to carry the full costs of this investment. Now, I know the President, in addressing the Fifa workshop yesterday, was very biblical about this investment. I shan’t go there today!
National government will provide a total of R15 billion for infrastructure related to the World Cup. [Applause.] Of this amount, R8,4 billion is for the stadiums and R6,7 billion for public transport initiatives and supporting infrastructure. These amounts will be complemented by contributions from local government and other partners.
The Local Organising Committee is putting in place a framework to fast- track the construction of these stadiums to ensure that key facilities will be in place by mid-2009, when we host the Fifa Confederations Cup. In addition to these amounts, the budget will also provide for costs associated with policing, arts and culture – and I hope the Minister of Health is watching this - emergency medical services for 2010 and border control.
Coming, secondly, to investing in the built environment, we began increasing spending on social and economic infrastructure in 2001. Sustainable, vibrant communities require houses, but also much, much more. They require safe neighbourhoods, parks, street lighting, quality schools, roads, clinics and access to public transport. Jeremy, you heard that, right? [Interjections.] OK!
The main conduits of spending on the built environment are the Provincial and Municipal Infrastructure Grants, the Integrated Housing and Human Settlement Development Grant and the Integrated National Electrification Programme. Funds channelled through the Department of Water Affairs and Forestry complement these programmes.
This year we launched a new programme called the Neighbourhood Development Partnership Grant with an initial three-year allocation of R2,5 billion. To date, we have received 243 applications from 60 municipalities for access to this grant. Thirty-five qualifying projects have been identified, involving total public and private sector investment of about R3,6 billion over the three-year period.
Including changes proposed in the budget framework, over R83 billion is being set aside for investments in the built environment, with many of these programmes doubling over the next three years. Hon members, we do these things so that the benefits of property and community investment should extend beyond Sandton, Constantia or Waterkloof.
Recent research indicates that house prices in townships have shown rapid increases in the past three years. We are now seeing rising interest by property developers in the low-income housing market, supported by both lower interest rates and rising household incomes. Shared growth is about accelerating and reinforcing these trends.
As the economy grows, one of the constraints to broader economic participation is poor public transport networks across our major cities. These challenges facing us in respect of the commuter rail system are particularly acute. Trains are often late, security is poor and there are safety concerns. Ageing signalling systems and deteriorating rolling stock contribute to unreliable and inadequate service.
Additional resources are therefore recommended for both municipal transport systems and public transport relating to the 2010 Fifa World Cup. A further R1,1 billion is proposed for the South African Rail Commuter Corporation, bringing the total transfer to the corporation to R15 billion over the next three years. In the 2006 Budget, we announced that we expected government and public enterprises to spend about R370 billion on infrastructure over a three-year period. We now expect spending on public infrastructure to grow by about 15% a year and to reach about R150 billion a year by 2010. These investments are focused on social and household services and infrastructure that expands economic capacity. The proposed budget framework provides R28 billion of additional funds for spending on electrification, roads, commuter rail services, housing, bulk infrastructure and research and development.
The third priority we’ve identified is fighting crime. We have always emphasised that bringing down crime requires a combination of social and economic programmes designed to improve community livelihoods, and that reducing crime requires a strong partnership between communities and government. However, the direct efforts of our criminal justice sector are critical to making our country safer.
As a government, we are committed to the reduction of crime, and particularly violent crime. We are acutely aware of the damage that crime does to our social fabric and our collective psyche, and its impact on all South Africans, including the livelihoods of small businesses and the poor.
The 2007 Medium-Term Expenditure Framework proposes to add further resources to support the fight against crime. We make provision for a further 10 000 people to be employed by the SA Police Service, raising overall policing levels to 193 000 by 2010. [Applause.] We also make provision for more people to be employed in the legal system, mainly to improve court case-flow management. Spending on justice, policing and prisons will grow by 9,4% a year over the medium term.
Fourthly, with regard to enhancing economic capacity, major infrastructure projects over the next three years include the Gautrain rapid rail link, the King Shaka Airport, the De Hoop Dam on the Olifants River and the Vaal River augmentation project. Minister, find a nice name for it, because it’s a very hard name to say!
Most of these projects use a combination of public and private sector funding and all are designed to complement and encourage private business investment or, as in the case of the De Hoop Dam, open an entire area to new mining ventures. Much of the investment by state-owned enterprises is also designed to facilitate greater export performance.
Improving economic performance and broadening economic opportunities cannot happen without further improvements in our investment in human capital. The 2007 MTEF proposes significant additions for enhancing the development of skills. A major step up in spending on adult literacy is proposed. Further additions are proposed for higher education, including resources for infrastructure investment at universities.
Three new bursary programmes are envisaged. The first is to attract 1 400 young people into the teaching professions and for 900 teachers to improve their skills through post-graduate education in maths, science and life skills. [Applause.] The second is aimed at raising the number of qualified social workers, both in the public and non-governmental sectors. Thirdly, money is set aside for deserving entrants into our FET colleges. [Applause.]
Besides the adjustment for the current year for Alexkor and allocations for broadband Infraco, a total of R6 billion is set aside for the PBMR project over the period ahead. Subject to the necessary environmental, regulatory and safety considerations, this initiative places South Africa at the forefront of new-generation energy technology development worldwide.
The last area is improving the performance of the public sector. But this relates to the need to improve the capacity of government. There are many components of the Public Service that work well, where departments deliver services of a high quality and citizens are treated with respect and dignity. There are, of course, many schools where effective learning takes place and many millions of people are served by our clinics.
However, there are also clear inadequacies. As public spending has accelerated in the past five years, we, as government, are becoming increasingly concerned that, in many cases, increased resources have not translated into increased outputs. And so the public has not always seen the benefit of the significant rise in public spending.
This budget framework makes provision for increased salaries for certain categories of professions, especially in the health and social welfare sectors. It also makes provision for higher staffing levels in health, police, justice and social welfare. These are much-needed improvements. Hon members of this House know that we share a responsibility to ensure that improved management and better accountability accompany the rising public sector wage bill.
Municipalities are confronted with several capacity challenges that hamper critical areas of service delivery, which impact negatively on the delivery of basic services and the achievement of water and sanitation targets.
The 2007 Budget will propose to allocate more than R700 million over the next three years to Siyenza Manje – an initiative of government that is primarily driven by the Development Bank of Southern Africa. It aims to provide the necessary expertise in the fields of project and financial management, planning and other critical skills needed for the effective delivery of the local government mandate.
Our intergovernmental fiscal framework is now an established part of our public finances. Last week, we published two documents covering provincial and local government. They set out spending trends and budgets, sectoral policy developments and non-financial performance information, and they cover, in fact, the trajectory over a seven-year period. I urge all members of this House to peruse these documents. They provide a compelling perspective on the state of service delivery in these two most critical spheres of government.
The division of revenue between the three spheres is made on the basis of the policy priorities determined by government, articulated in the state of the nation address and given effect in legislation passed by Parliament. Of the additional R80 billion in spending, it is proposed that provinces receive R28 billion and local government R19 billion.
The provincial transfers fund higher spending in education, health and welfare services, as well as further additions for infrastructure. The Hospital Revitalisation Grant, programmes aimed at preventing and treating HIV and Aids and the Provincial Infrastructure Grant receive more resources.
Transfers to local government remain one of the fastest-growing categories of public spending. The additional resources proposed for the next three years go mainly for the 2010 Fifa World Cup. The local government equitable share is increased by R5 billion to help accelerate the delivery of free basic services. A further R1,4 billion will be allocated for bulk water and sanitation infrastructure, and R400 million for the eradication of the bucket system. [Applause.]
This is the 10th Medium-Term Budget Policy Statement presented in this House. When we launched this statement for the first time in 1997, we said:
This is a significant step in increasing transparency, openness and co- operative government. For too long, budgets have been made behind closed doors. These are important decisions which affect all our futures.
A coalition of international nongovernmental organisations under the umbrella of the International Budget Project recently ranked South Africa fourth out of 59 countries for the transparency of our budget documents. [Applause.] The MTBPS, the Budget Review, Estimates of National Expenditure and our provincial and local expenditure reviews, all contribute to this achievement, and the countries ahead of us are New Zealand, France and the UK. I hope it’s not going to be like that in the Champions Trophy cricket in India this week. [Interjections.]
But we are not yet where we want to be. We still have too little debate in this House, and in the country more widely, on the budget priorities. Over the course of the next few weeks, we will engage with Parliament on the budget framework. This is a framework that we want to return with in February, having discussed it more broadly. We want to talk about the spending priorities we’ve mentioned here. We will also meet a number of external organisations, including our social partners at Nedlac and the People’s Budget Coalition to solicit their views on the budget framework.
A raised level of consultation and debate on priorities and greater scrutiny of the public finances not only strengthens our democracy but also places pressure on government departments to deliver. It is a valuable accountability mechanism and now I think we can do it with so much more confidence because we stand on the solid ground of sound public finances in this country.
The solid performance of our economy, in particular the creation of so many job opportunities and rising household incomes, allows us to turn the dreams of ordinary people into new realities. The expansion of infrastructure investment and the management of our public finances provide us with the capacity and resources to improve the services we provide to our people, to build hope and to expand opportunities.
The Medium-Term Budget Policy Framework invites this House, in particular, and all South Africans, to embrace the challenges ahead as we prepare for 2010 and as we progressively broaden participation in a growing economy with confidence in these, our shared commitments. Thank you very much for your patience in listening. [Applause.]
Medium-Term Budget Policy Statement, Adjustments Appropriation Bill and Adjusted Estimates of National Expenditure, 2006, tabled.
Medium-Term Budget Policy Statement referred to Joint Budget Committee and Portfolio Committee on Finance for consideration, in accordance with their respective mandates.
Adjustments Appropriation Bill, together with related papers tabled, referred to Portfolio Committee on Finance for consideration and report.
CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT ITO SECTTION 231(2) OF THE CONSTITUTION - INTERNATIONAL CONVENTION FOR THE SUPPRESSION OF ACTS OF NUCLEAR TERRORISM
CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT ITO SECTION 231(2) OF THE CONSTITUTION - PROTOCOL TO THE OAU CONVENTION ON THE PREVENTION AND COMBATING OF TERRORISM
Ms M M SOTYU: Chairperson, regarding the International Convention for the Suppression of Acts of Nuclear Terrorism, this convention was in the process of being drafted when the South African Parliament was drafting and adopting the Protection of Constitutional Democracy Against Terrorism and Related Activities Act of 2004.
The draft convention was taken into consideration in the drafting process of the Act and, as a result, the offences required to be enacted in terms of the conventions are already included in the Act. No new legislation is required to effectively implement the convention. The President signed the convention during last year, that is 2005. South Africa is serious about becoming party to all international instruments to counter terrorism.
The Portfolio Committee on Safety and Security, having considered the request for approval by Parliament of the International Convention for the Suppression of Acts of Nuclear Terrorism, recommends that the House, in terms of section 231(2) of the Constitution of 1996, approves the said convention.
Concerning the Protocol to the OAU Convention on the Prevention and Combating of Terrorism, as determined by section 231(2) of the Constitution of the Republic of South Africa of 1996, the Portfolio Committee on Safety and Security seeks ratification of the African Union Convention on the Prevention and Combating of Terrorism. This ratification is, however, subject to two interpretative declarations.
The main aim of the protocol is to enhance the African Union Convention on the Prevention and Combating of Terrorism. The Peace and Security Council of the AU will play an active role in the dissemination of information and the implementation of the plan of action to facilitate the implementation of the protocol. The commission will also provide technical and advisory assistance.
In order for this House to ratify this protocol, the following interpretative declaration needs to be made with ratification, and regarding the issue of mercenaries, we need to make the following declaration: that the government of the Republic of South Africa is not a party to the African Union Convention for the Elimination of Mercenarism in Africa and knows that this is a convention that has been identified by the Assembly of the African Union as being suitable for review. In the interim, the government of the Republic of South Africa will interpret and apply article 3(1)(s) in accordance with legislation of the Republic of South Africa applicable to mechanisms which prohibit the recruitment, use, training of or engagement in any mercenary activity.
In the way the South African law will be able to comply, the OAU convention as well as the UN convention on mercenarism will not be ratified because they were seen as too narrow. The South African law, including the new anti- mercenary Bill, is much wider and also addresses foreign military assistance. The AU has identified the mercenary convention for review.
The second declaration deals with extradition. Article 8 of the protocol provides that the convention shall constitute an adequate legal basis for the state parties that do not have extradition arrangements. This is in conflict with South African law. The interpretative declaration to deal with this reads thus: that the government of the Republic of South Africa shall apply the provision of Article 8 of the protocol in accordance with the obligation imposed upon states parties in Article 8 of the OAU, now African Union, Convention on the Prevention and Combating of Terrorism.
The Portfolio Committee on Safety and Security recommends that Parliament approves the ratification of all protocols to the AU Convention on the Prevention and Combating of Terrorism, with proposed interpretative declarations in respect of extradition and mercenarism. I thank you. [Applause.]
There was no debate.
International Convention for the Suppression of Acts of Nuclear Terrorism approved.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Acting Speaker, we move:
That the Protocol be approved and the additional interpretative declarations recommended by the Committee be adopted.
Motion agreed to.
Protocol to the OAU Convention on the Prevention and Combating of Terrorism therefore approved, and the additional interpretative declarations recommended by the Committee, adopted.
The House adjourned at 14:47. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
-
Introduction of Bill (1) The Minister of Finance
a) Adjustments Appropriation Bill [B 32 – 2006] (National Assembly – proposed sec 77)Introduction and referral to the Portfolio Committee on Finance of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
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.
-
Bills passed by Houses – to be submitted to President for assent
(1) Bill passed by National Council of Provinces on 25 October
2006:
a) National Land Transport Transition Amendment Bill [B 38D –
2005] (National Council of Provinces – sec 76).
National Assembly
The Speaker
- Message from National Council of Provinces to National Assembly in respect of Bills passed by Council and transmitted to Assembly (1) Bill passed by National Council of Provinces and transmitted for concurrence on 25 October 2006: (a) Foodstuffs, Cosmetics and Disinfectants Amendment Bill [B 35D - 2005] (National Assembly – sec 76). The Bill has been referred to the Portfolio Committee on Health of the National Assembly.
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Finance
a) Medium Term Budget Policy Statement 2006 [RP 239-2006].
Referred to the Joint Budget Committee and the Portfolio Committee
on Finance for consideration, in accordance with their respective
mandates.
b) Adjustments Appropriation Bill, 2006 [B32-2006].
Referred to the Portfolio Committee on Finance for consideration
and report.
c) Adjusted Estimates of National Expenditure 2006 [RP 240-2006],
which includes:
1. Memorandum on Vote No 1 - "The Presidency", Adjustments
Estimates, 2006-2007;
2. Memorandum on Vote No 2 - "Parliament", Adjustments
Estimates, 2006-2007;
3. Memorandum on Vote No 3 - "Foreign Affairs", Adjustments
Estimates, 2006-2007;
4. Memorandum on Vote No 4 - "Home Affairs", Adjustments
Estimates, 2006-2007;
5. Memorandum on Vote No 5 - "Provincial and Local
Government", Adjustments Estimates, 2006-2007;
6. Memorandum on Vote No 6 - "Public Works", Adjustments
Estimates, 2006-2007;
7. Memorandum on Vote No 7 - "Government Communications and
Information System", Adjustments Estimates, 2006-2007;
8. Memorandum on Vote No 8 - "National Treasury", Adjustments
Estimates, 2006-2007;
9. Memorandum on Vote No 9 - "Public Enterprises", Adjustments
Estimates, 2006-2007;
10. Memorandum on Vote No 10 - "Public Service and
Administration", Adjustments Estimates, 2006-2007;
11. Memorandum on Vote No 11 - "Public Service Commission",
Adjustments Estimates, 2006-2007;
12. Memorandum on Vote No 12 - "South African Management
Development Institute", Adjustments Estimates, 2006-2007;
13. Memorandum on Vote No 13 - "Statistics South Africa",
Adjustments Estimates, 2006-2007;
14. Memorandum on Vote No 14 - "Arts and Culture", Adjustments
Estimates, 2006-2007;
15. Memorandum on Vote No 15 - "Education", Adjustments
Estimates, 2006-2007;
16. Memorandum on Vote No 16 - "Health", Adjustments Estimates,
2006-2007;
17. Memorandum on Vote No 17 - "Labour", Adjustments Estimates,
2006-2007;
18. Memorandum on Vote No 18 - " Social Development",
Adjustments Estimates, 2006-2007;
19. Memorandum on Vote No 19 - "Sport and Recreation South
Africa", Adjustments Estimates, 2006-2007;
20. Memorandum on Vote No 20 - "Correctional Services",
Adjustments Estimates, 2006-2007;
21. Memorandum on Vote No 21 - "Defence", Adjustments
Estimates, 2006-2007;
22. Memorandum on Vote No 22 - "Independent Complaints
Directorate”, Adjustments Estimates, 2006-2007;
23. Memorandum on Vote No 23 - " Justice and Constitutional
Development ", Adjustments Estimates, 2006-2007;
24. Memorandum on Vote No 24 - " Safety and Security",
Adjustments Estimates, 2006-2007;
25. Memorandum on Vote No 25 - " Agriculture", Adjustments
Estimates, 2006-2007;
26. Memorandum on Vote No 26 - "Communications", Adjustments
Estimates, 2006-2007;
27. Memorandum on Vote No 27 - " Environmental Affairs and
Tourism", Adjustments Estimates, 2006-2007;
28. Memorandum on Vote No 28 - "Housing", Adjustments
Estimates, 2006-2007;
29. Memorandum on Vote No 29 - "Land Affairs", Adjustments
Estimates, 2006-2007;
30. Memorandum on Vote No 30 - " Minerals and Energy",
Adjustments Estimates, 2006-2007;
31. Memorandum on Vote No 31 - "Science and Technology",
Adjustments Estimates, 2006-2007;
32. Memorandum on Vote No 32 - "Trade and Industry",
Adjustments Estimates, 2006-2007;
33. Memorandum on Vote No 33 - "Transport", Adjustments
Estimates, 2006-2007;
34. Memorandum on Vote No 34 - "Water Affairs and Forestry",
Adjustments Estimates, 2006-2007;
Referred to the Portfolio Committee on Finance for consideration
and report.
- The Minister of Trade and Industry a) Report and Financial Statements of the Small Enterprises Development Agency for 2005-2006, including the Report of the Auditor-General for the fifteen month period ended on 31 March 2006.
National Assembly
- The Speaker
(a) The President of the Republic submitted the following letter
dated 12 October 2006 to the Speaker of the National Assembly
informing Members of the Assembly of the employment of the South
African National Defence Force in the Democratic Republic of Congo:
EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE IN THE
DEMOCRATIC REPUBLIC OF CONGO, FOR SERVICE IN FULFILMENT OF THE
INTERNATIONAL OBLIGATIONS OF THE REPUBLIC OF SOUTH AFRICA TOWARDS
THE DEMOCRATIC REPUBLIC OF CONGO
This serves to inform the National Assembly that I have authorised
the employment of South African National Defence Force (SANDF)
personnel to the Democratic Republic of Congo (DRC), in fulfillment
of the international obligations of the Republic of South Africa
towards the DRC in support of the electoral process. The second
round of the elections in the DRC is scheduled to take place on 29
October 2006.
This employment was authorised in accordance with the provisions of
section 201(2)(c) of the Constitution of the Republic of South
Africa, 1996, read with section 93 of the Defence Act, 2002 (Act No
42 of 2002).
A total of forty (40) members are employed as from 15 September
2006 to 31 October 2006 to assist with the distribution of the
ballot material in the DRC. The total estimated cost to be borne by
the Department of Foreign Affairs from the African Renaissance Fund
for the deployment of the personnel is R 45 886 209. The cost may
escalate depending on chartering aircraft and the number of hours
flown.
I will communicate this report to members of the National Council
of Provinces and wish to request that you bring the contents hereof
to the attention of the National Assembly.
Regards
TM Mbeki
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Home Affairs on the Immigration Amendment Bill [B 28 – 2006] (National Assembly – sec 75), dated 24 October 2006:
The Portfolio Committee on Home Affairs, having considered the subject of the Immigration Amendment Bill [B 28 – 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.
-
Report of the Portfolio Committee on Health on the South African Red Cross Society and Legal Protection of Certain Emblems Bill [B 25 – 2006] (National Assembly – sec 75), dated 24 October 2006:
The Portfolio Committee on Health, having considered the subject of the South African Red Cross Society and Legal Protection of Certain Emblems Bill [B 25 – 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.