TUESDAY, 30 MAY 2006 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at 10:00.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): I would like to welcome to this House this morning the hon national Minister for Provincial and Local Government, hon Mufamadi and the hon Deputy Minister, hon Hangana. You are welcome here this morning.

                          NOTICES OF MOTION

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

That the NCOP –

 1) notes that violence and criminal activities on our trains,
    especially on the East Rand, has escalated out of control;

(2) further notes that the South African Police Service does not have the capacity to deal effectively with this situation, as they are kept very busy with their many other activities;

(3) calls upon on the relevant authorities to consider the option of using the SA National Defence Force at the various train stations and stops in order to bring this situation under control; and

 4) acknowledges that the use of the SANDF will then free up much-
    needed human resources within the SAPS.

So I shall move.

Me J F TERBLANCHE: Voorsitter, ek gee hiermee kennis dat ek die volgende voorstel tydens die volgende sitting van die Huis sal doen:

Dat die Raad, in die lig van die handhawing van die waardigheid van die Raad en wedersydse respek tussen lede –

 1) met onsteltenis kennis neem van die onverantwoordelike, nydige en
    kwetsende stellings wat deur die Hoofsweep van die Raad oor agb
    Hilda Weber gemaak is;

(2) hierdie stellings van die Hoofsweep, wat klaarblyklik op ‘n ongeverifieerde koerantberig gebaseer is, en wat uitgesproke rassistiese en sterotiperende inhoud bevat, onvoorwaardelik verwerp;

(3) dit kategories stel dat hierdie optrede die pogings van verantwoordelike leiers om versoening in Suid-Afrika te bevorder, onberekenbare skade aandoen;

(4) ‘n beroep op die Hoofsweep doen om ‘n formele verskoning aan die agb Weber aan te bied en dat hy aangespreek word oor dié onverantwoordelike optrede, wat nie net die waardigheid van die Parlement nie, maar ook die waardigheid van elke verkose lid van dié liggaam aantas; en

(5) alle lede, in die belang van nasiebou en versoening, aanraai om hulle van hierdie tipe optrede te weerhou. (Translation of Afrikaans notice of motion follows.)

[Ms J F Terblanche: Chairperson, I hereby give notice that on the next sitting day of the House, I shall move:

That the Council in the light of upholding the dignity of the Council and mutual respect of members for fellow members -

(1) notes with dismay the irresponsible, spiteful and offensive remarks made by the Chief Whip of the Council regarding the hon Hilda Weber;

(2) rejects unconditionally these remarks by the Chief Whip, which are apparently based on an unverified newspaper report, which contains explicit racist and stereotypical content;

(3) states categorically that this behaviour causes incalculable damage to the attempts by responsible leaders to promote reconciliation in South Africa;

(4) calls upon the Chief Whip to make a formal apology to the hon Weber and that he be reprimanded regarding this irresponsible conduct which impairs not only the dignity of Parliament, but also the dignity of every elected member of this body; and

(5) recommends, in the interests of nation-building and reconciliation, that all members refrain from this type of conduct.]

Mnr J W LE ROUX: Agb Voorsitter, ek gee hiermee kennis dat ek op die volgende sittingsdag van die Raad sal voorstel:

Dat die Raad –

(1) kennis neem dat die agb Watty Watson se beserings ernstiger is as wat aanvanklik vermoed was;

(2) hom ‘n spoedige herstel toewens; en

(3) verder vertrou dat hy eersdaags weer sy plek in die Raad sal kan inneem.

(Translation of Afrikaans notice of motion follows.)

[Mr J W LE ROUX: Hon Chairperson, I hereby give notice that on the next sitting day of the House, I shall move:

That the Council -

(1) notes that the injuries sustained by the hon Watty Watson are more serious than was initially suspected;

(2) wishes him a speedy recovery; and

(3) further trusts that he will soon return to take his place in the Council.]

            EXCELLENT PROGRESS AT BELLA VISTA HIGH SCHOOL


                         (Draft Resolution)

Me H LAMOELA: Voorsitter, ek stel sonder kennisgewing voor:

Dat die Raad –

(1) gelukwense aan die Bella Vista Hoërskool te Ceres in Witzenberg bring vir hul uitmuntende prestasie waarin die toekenning van Meeste Vordering in Afrikaans deur die agb Adjunkpresident, me Phumzile Mlambo-Ngcuka en die nasionale Minister van Onderwys, me Naledi Pandor, aan die skool toegeken is;

(2) sy trots uitspreek op hul voortbouende prestasie, soos verlede jaar toe die skool ook die toekenning vir Konstante Vordering in Matriek 2005 ontvang het;

(3) kennis neem dat die skool 1 306 leerlinge vanaf graad 8 tot graad 12 huisves en in ‘n seisoenale gebied geleë is, waar –

    (a) ouers όf vrugtefabriekwerkers is όf in die landboubedryf werk;
        en


    (b) bykans 90% van ouers vanaf April tot Oktober elke jaar werkloos
        is; en

(4) erken dat die skool, ten spyte van al hierdie tekortkominge, onder leiding van mnr Sarel Brown uitstekend presteer. (Translation of Afrikaans draft resolution follows.)

[Ms H LAMOELA: Chaiperson, I move without notice:

That the Council -

(1) congratulates Bella Vista High School in Ceres in Witzenberg on their excellent achievement of being awarded the Most Progress in Afrikaans award by the hon Deputy President, Ms Phumzile Mlambo- Ngcuka and the national Minister of Education, Ms Naledi Pandor;

(2) expresses its pride in their continuing achievement, like last year, when the school also received the award for Consistent Progress in Matric 2005;

(3) notes that the school accommodates 1 306 pupils, from Grade 8 to Grade 12, and is situated in a seasonal area where –

    (a)  parents  are  either  fruit  factory  workers  or  agricultural
        workers; and


    (b) about 90% of the parents are unemployed every  year  from  April
        until October; and

(4) acknowledges that the school, despite all these shortcomings, is performing excellently under the guidance of Mr Sarel Brown.]

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

                 PROGRESS IN THE FREE STATE PROVINCE

                         (Draft Resolution)

Mr C J VAN ROOYEN: Chaiperson, I move without notice:

That the Council -

(1) notes that the Free State MEC for public works and roads announced during his budget speech that the Free State was the first province to align and implement the Construction Industry Development Board Regulations;

(2) notes that the Free State was the first province to issue route- based operating licences as part of the Taxi Recapitalisation Programme;

(3) also notes that the Free State has 40% of the maintenance, upgrading and capital budget for the current year for the promotion of broad-based black economic empowerment; and (4) commends, in particular, our ANC-led Free State provincial government’s efforts to create opportunities for SMMEs to participate in the economy of the province.

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

                         APPROPRIATION BILL




                           (Policy debate)

Vote No 5 – Provincial and Local Government:

The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson, MECs responsible for local government affairs, the leadership of Salga, hon members, when the past generation of local councillors assumed office in the year 2000, they found themselves on somewhat unfamiliar territory, a territory with few landmarks to guide them. Many of those councillors had responsibilities for areas which were previously marginal to developmental considerations. That some of those areas underwent some degree of transformation, is a crowning point of the endeavours of that pioneer generation of councillors, a remarkable feat worthy of our collective appreciation.

Hon members will recall that in the year 2001, 21 areas were designated as nodes. This meant that these areas were targeted for intense priority attention so that they could be extricated from the underdevelopment and poverty trap. Just before the 2006 local government elections, we conducted an impact analysis in those nodal municipalities.

Amongst the findings were the fact that access to basic and above-basic levels of water services in the rural nodes has increased from 54% in 2001 to 58% in 2004. This improvement is higher than the average rate of improvement in the country as a whole. A specific example of this is in the Alfred Nzo District Municipality, where out of the 126 000 households, 72 000 households, constituting 57%, have benefitted from the water provision initiative, which was undertaken in the context of the Integrated and Sustainable Rural Development Programme.

Of the more than 2,4 million households that benefited from the provision of houses, almost 900 000 households are located in the rural nodes. Between September 2002 and September 2005 a total of 374 000 electricity connections were made in the rural nodes, thereby giving the households access to a quality life-enhancing service -electricity.

In order to reinforce these trends, 264 community development workers have so far been deployed in the nodes. An additional 201 community development workers are still in learnership, and upon completion they will also be deployed to both urban and rural development nodes. An additional 201 community development workers are still in learnerships and upon completion they will also be deployed to both urban and rural development nodes.

Similar trends are in evidence in the urban nodes. For instance, in the Alexandra urban renewal node, 6 000 households have benefited from new electricity connections, and 1 200 new houses have been built in the township. In addition, 3 000 housing units were provided outside Alexandra to accommodate relocated households. Furthermore, a new multipurpose community centre is operational. The Department of Home Affairs now has new offices in the multi-purpose centre, and at the Alexandra Clinic a new central social welfare office has been made operational as well. The office has become a point through which more than 12 000 beneficiaries are able to access their monthly social grants.

Gratified as we are by these achievements, we do not see them as the ultimate horizon. Our endeavour to remake South African society in accordance with the ideals for which we went to war is ceaseless. In response to the yearnings of our people as communicated to us during the presidential and ministerial izimbizo and in the course of the election campaigns we have undertaken to make the current term of local government one during which unprecedented levels of progress shall be realised.

It is our intention to ensure that no community will still be using the bucket system for sanitation by the end of 2007. We are also determined to ensure that all communities will have access to clean water and decent sanitation by 2010 and that all houses will have electricity by 2012.

Prior to the 2006 local government elections, we introduced a hands-on programme of support for local government. Not only did that programme help us to achieve the short-term goal of removing obstacles which stood in the way of service and infrastructure delivery, but it also provided us as government practitioners with the possibility to better understand and navigate the governance and developmental landscape. Those achievements must be assimilated by the current generation of practitioners, including the newly elected councillors.

One of the lessons we derived from that experience is the necessity for the Department of Provincial and Local Government and its counterparts in the provinces to place themselves firmly at the centre of intergovernmental co- ordinating processes. They must help to crystallise the relevance of national and provincial departments to the mandate and work of our municipalities.

We have already seen some of the benefits of intergovernmental collaboration and support. For instance, by March 2006, 80% of all municipalities in the country had draft integrated development plans. This achievement followed on after an intensive process of interaction between local government stakeholders in all the nine provinces. The process has given us better insights into the resource and capacity-support requirements of each municipality; and those resources, the capacity that need to be deployed in order to respond to the requirements as identified in the municipality, are in the process of being mobilised.

It is also our purpose this year to pay the closest attention to the full implementation of the intergovernmental relations framework legislation. The President’s Co-ordinating Council, whose establishment predates the enactment of the legislation, is now fully operational. We used the President’s Co-ordinating Council’s establishment and experimental operationalisation as a model for future practice.

The provinces are now working closely with local government to facilitate the establishment of district intergovernmental structures. National government will also lend a hand to this process.

We have also come to realise that districts will require additional support for them to assume their rightful role as developmental facilitators in the municipalities that resort under their jurisdiction. In this regard, we will need to define more clearly the district shared service model. This, of course, goes hand in hand with clarifying distributional patterns of powers and functions across government. It also extends to related matters of assignment and devolution of functions to local government. Major efforts are being undertaken in this regard and we aim to present a report for consideration by the extended Cabinet Lekgotla in July 2006. The report, together with the decisions which shall have been occasioned by it, will form a basis for intense interaction between the executive and the legislative branches of government across the three spheres.

The NCOP in particular will need to bring its own insights to bear on this matter, given the constitutional responsibilities it has towards our multisphered system of government. As we said in the National Assembly last week, steps are being taken to increase the scope for a democratic check on the performance of the political and the administrative leadership of local government.

In addition to launching a handbook for ward committees and the ward committee resource handbook, we are now working on a national framework on public participation in local government. And we are also finalising a submission to the South African Qualifications Authority for an accredited training course for ward committees. On the other hand, there is under way a parallel process of establishing district houses of traditional leaders, as well as traditional councils as visualised in the relevant national framework legislation. In the same way as councillors and ward committee members are being trained throughout the country, traditional leaders and members of traditional councils must also be trained in the art of improving the quality of interaction with the mechanisms and processes of governance. This matter is receiving attention, and the programme shall be unveiled soon.

The demands of the moment are beckoning us to pay continuing and unflagging attention to the task of supporting those municipalities who still lack the indigenous capacity for discharging their constitutional mandates. This must be done within the context of more co-ordinated and better-focused intergovernmental mechanisms and processes.

On current trends, however, we are immensely hopeful and we are now able to contemplate in a manner never previously possible, the prospect of ushering in a glorious new age for all our people. And in all the endeavours that we are making going forward, we hope we can continue to count on the generous demonstration of political will and support from this House. I thank you. [Applause.]

Mr S SHICEKA: Deputy Chairperson, Minister and the Deputy Minister, colleagues, MECs, officials from the department and the leadership of Salga, we are presenting this policy budget debate in the year in which we are celebrating a decade of the adoption of our Constitution, nine years of the establishment of the NCOP, 50 years since the women’s march and 30 years of the youth struggle; and almost three months after the successful South African local government elections that were pronounced free and fair by the IEC. The Republic of South Africa should pride itself on registering a voter turnout of more than the international average of 41% in the local government elections. South Africa’s voter turnout and participation was 48,3%. The country should strive to improve on this result. We should thank the department for giving leadership and other associated institutions, especially the South African people who exercised their hard-won right of electing the leaders of their choice.

The outcome of local government elections gave the ANC the majority across the length and breadth of our country. What does this story tells us? It clearly conveys a message that says the ANC is an undisputed champion that carries the aspirations of South Africans. It is the only party that grows its support base as it participates in successive elections.

The people were moved by the plan, the manifesto of the ANC for the next five years. Let’s remind ourselves of what the plan was saying. The plan was saying that we should strive to accelerate service delivery so that no community will still be using the bucket system for sanitation by 2007. All communities will have access to clean water, and decent sanitation by 2010. All houses will have access to electricity by 2012. There is universal provision of free basic services across our country.

To implement this plan and ensure that local government moves in tandem with provincial and national structures, the ANC will strengthen popular participation by making ward committees more effective. Immediately after the elections the ANC will put in place a turnaround programme to make sure that councillors are able to meet their mandate. It will resolutely fight laziness, arrogance and corruption. This is the benchmark and the yardstick that should be used to measure the contribution of this budget.

The department presented to the committee that local government will receive R92 billion over the MTEF period from the national Fiscus; R82 billion will be allocated to municipalities through the departmental budget, whilst the remainder will be through the sister departments - the Departments of Transport, Minerals and Energy, Water Affairs and Forestry and National Treasury.

The transfers to municipalities were categorised in three areas: infrastructure development, capacity building and institutional transformation and equitable share and related transfers. The committee is impressed with the work being done by the department. We feel that there is an increasing clarity, horizontally amongst departments and vertically amongst the spheres of government, on what needs to be done for the developmental local government with local government.

Project Consolidate in particular has captured the imagination of our people from all walks of life, and from all sectors of our society. The project is beginning to pull resources in an unprecedented way. People and organisations are putting their shoulders to the wheel. The ANC’s Strategy and Tactics document says:

In order to ensure that government truly serves the interests of the people, the ANC will strengthen co-operative governance amongst all spheres of government, national, provincial and local, for each level to play its requisite role in serving the people. The allocation of powers and functions, in essence, the delegation of common labour amongst these spheres should be driven by these objectives.

On the same point, the ANC Local Government Manifesto says that:

The ANC is the better place to build a partnership between national and provincial government and municipalities. And this will make things happen faster and more effectively in the interest of the people.

The passing and the implementation of the Intergovernmental Relations Act of 1995, integrated development plans across all spheres of government, improving the quality of municipal integrated plans and enhancing local economic development and allocation of concomitant resources were at the core of the President’s state of the nation address. These plans are being translated into reality as we speak in this budget debate.

Minister, we think that the same commitment and vigour that you are showing should also be extended to provinces in terms of institutional configurations of the department, capacity building in the interest of promoting good intergovernmental relations with similar structures and systems of polic-making and implementation; although we understand that we have inherited, as a country, an uneven development geographically and therefore there is a need for different priorities and emphasis.

The allocations of powers and functions, as outlined above from the ANC’s Strategy and Tactics document, as a matter of importance, cannot be overemphasised. The area where we think, Minister, your assistance and co- operation can be of value as the Minister responsible for provincial and local government, is through the participation of some various executive committee members and their commitment to this constitutionally established House.

I’m saying Minister, the participation of some premiers and some MECs in this House leaves a lot to be desired. We believe that you must be able to take up the issue as we will be reflecting on the 10 years of the establishment of the NCOP next year. We believe that the participation of the executives needs to be discussed, probably with the leadership of the leadership of the NCOP. Maybe this should be taken to the provincial co- ordinating committee where they must be encouraged to ensure that they make this House function as it is supposed to. We believe that if you can play that role in assisting this House, the participation of the executive members from various provinces will greatly improve.

The Strategy and Tactics document says our commitment to open and transparent government and ensuring an informed, active citizenry are more than just high-sounding phrases. They are the lifeblood of our democratic governance, the core values of our people. We shall therefore continue to strengthen relations between government and civil society, including nongovernmental community-based organisations.

The committee commends the department for implementing this programme. However, we believe that ward committee members should at least be paid for out-of-pocket expenses. We believe that a national policy has to be developed in this regard, so that our people don’t subsidise government by going to government functions. They don’t borrow from their neighbours for them to be able to go to meetings. Therefore, the Council must be able to play a role in giving them resources.

I want to conclude by saying that the ushering in of the second decade of freedom in South Africa affords government and the Department of Provincial and Local government the opportunity to further build on the solid foundation and progress already being made. The age of hope is with us. Indeed, tomorrow will be better than yesterday. The lives of millions of our people have already changed for the better. As the committee, we recognise the important and central role played by the department to enable other departments in the government, the private sector and the public at large, to function effectively without hindrance. We do indeed take pride in your work. The committee supports the Budget Vote.

I also want to thank the committee members for their diligent participation and engagement with the department. At the same time we want to thank the department for taking us through in terms of this budget, so that all of us could be on the same wavelength in terms of our understanding. I also want to thank everyone who made our discussions possible and lively. Thank you very much, Chair. [Applause.]

Kgoshi M L MOKOENA: Thank you, Chairperson. Chairperson and hon members, when a man or woman works, he or she alters things and society. He or she develops himself or herself. He or she learns much. He or she cultivates his or her resources. He or she goes outside of himself or herself. He or she goes beyond himself or herself.

I am saying all these things to show my appreciation to the department, the director-general in particular and her team for the preparedness and readiness whenever they are called to come and share any information with the committee. Yes, it is true, no matter how deep the bottle is, the cream will always be on top.

Hon Minister and Deputy Minister, the investment you have made to the director-general and her team is bearing much-needed fruits. Who can deny it when I say if work helps us to accomplish something noble, something to be proud of, then work becomes a right and not a duty, a choice and not an obligation, a delight and not a grief? The budget briefing was so empowering - thanks to you director-general and your team.

O hlokomele ba se ke ba go loya. [Disego.] [Be careful that they do not bewitch you. [Laughter.]]

Chapter 12 of our Constitution recognises the institution of traditional leadership, its role and its functions. It also dictates that national legislation is provided for the role of these traditional leaders to participate in matters of development in their local communities. All houses of traditional leaders in the six provinces and the national house have been established.

It was disturbing however to learn from the department during our budget briefing that the National House of Traditional Leaders was unable to use its entire budget in the last financial year. Last year I was one of those members who called upon the department to allocate more money to the National House of Traditional Leaders to enable it to fulfil its mandate.

Traditional leaders have a big task ahead of them which amongst other things are: to visit all provincial houses, to brief communities about national legislation that affects those particular communities, to conduct workshops with provincial houses, to have meetings with district and local municipalities in order to harmonise their relationship and to assist and advise traditional leaders on how to elect the new traditional councils. These are but just few examples of things that the house needs to do.

I am raising this concern, Chairperson, because the budget of the National House of Traditional Leaders is about R60 million. But all is not lost; there is room for improvement. To the National House of Traditional Leaders I can only say, please help us to help you.

It is sad to note that the tension between some traditional leaders and some municipal councillors still exists. There are still some traditional leaders who see municipal councils as a threat to their rule. Similarly, there are councillors who think traditional leaders are not supposed to play any meaningful role in the development of their communities. They do not see any need to involve traditional leaders in whatever development that must take place in their areas. Maybe this is an opportune time for some of us to remind the two structures, who deliberately decide to ignore one another, that by law municipal councillors are expected to deliver services in the local sphere of government. Traditional leaders as well are here to stay, whether we love it or not. We cannot wish them away. The question however is: Why this tension between the two structures?

Re a tseba gore a go na magoši ao a ka ganago tlhabologo ge etla dinageng tša bona. Efela ba tla lwa ya maatlho-mahubedu ge e le gore go na le seo se diregago nageng ya bona mola bona ba sa tsebe. Ka lehlakoreng le lengwe, a mangwe a makhanselara a kgona go thoma ditirelo setšhabeng. Ba no bona lefelo ba ya ba le kgetha gomme ba thoma go šoma go lona ba sa bontšhana le kgoši ya naga yeo. Go ya ka nna seo ga se hlokagale ka gore ga o nyake tumelelo go kgoši gore o tliše tlhabologo setšhabeng. E no ba fela go mo tsebiša gore bjale re tlile re a bereka ke rena ba. Le yena Kgoši ga a na tokelo ya gore ge mokhanselara a tla ka tlhabologo mo setšhabeng a e thibele a re ka gore naga ke ya ka. Seo ga se kgonagale.

Maphakga a ka bobedi a swanetše go tseba gore mmatlaseromo o palega manga le gore montshepetša bošego ke mo leboga bosele. Naa lena bahlomphegi makhanselara, go pala kae gore le ye go kgoši go yo bontšhana le yena fela ge le iša tlhabologo mo nageng ya gagwe? Ge le ka dira bjalo ga ke tshepe gore kgoši yeo e ka ba le bothata. Le lena magoši, naa ke nnete gore le ka napa la re setšhaba se hwe se bolaye ke tlala, ka lebaka la tshele ya gore ga la ka la tsebišwa naa? A re tlogeleng magetla, re šomeleng setšhaba ka moka ga rena ka gore histori e tla le ahlola gampe. (Translation of Sepedi paragraphs follows.)

[We acknowledge that there is no chief who would be against development in his or her area. But they would fight fiercely if anything was to happen in the area without their knowledge. On the other hand, some councillors are able to start providing services in the communities. They can just choose an area and then start working on it without consulting the chief in that area. In my opinion, that is not such a big deal. It is not really necessary to ask the chief’s permission to bring development to the communities. They can just inform him of what they intend to do there. The chief has no right to stop the councillor by saying that the area is his. That is not possible.

Both parties should know that nothing much will come out of pulling in different directions and that people are always grateful to those who help them where necessary. Honourable councillors, what makes it so difficult for you to go to the chief and inform him of the developments you are working on in his area? That way, I don’t think the chief will have any problem at all. Honourable chiefs out there, is it possible that you would rather have the people starve because of the simple issue that you were not informed of what was going on? Let us not be pompous. Let us rather work together for our people, otherwise our profiles will look bad.] You gain or lose nothing by just consulting each other. I would like to call upon these two structures, in the best interests of the very same communities they are heading, to work together and forget about their personal egos.

Mmušo wa rena wa temokrasi o phasišitše molao wo ka wona motho yo mongwe le yo mongwe a nago le toka le tshwanelo tša go hlokomela segagabo le go bolela polelo ya gabo. Motho yo mongwe le yo mongwe o na le tshwanelo ya gore ge a dira tša segagabo a se ke a thibelwa. Efela go a swabiša go bona gore go na le bao ba nyakago gore polelo ya bona e be yona e tšwelago pele go phala tše dingwe. (Translation of Sepedi paragraph follows.)

[Our democratic government has passed this Act, in terms of which everyone has a right to promote their culture and speak their language. Everyone has a right to practise his or her own culture and should not to be stopped. It is sad, though, that there are some who feel that their language should be regarded as better than others.]

It pains me to see that some of the provinces, when they deal with the question of circumcision schools in our areas, instead of correcting all those wrongs in those initiation schools, they will even invite the media and TV crews to go to those schools just to ridicule our initiation schools. What a shame! That is done by people who know our culture and tradition. Instead of correcting all those wrongs to avoid deaths, their aim is only to ridicule our initiation schools. What a shame!

Chairperson, as I said that the House … [Time expired.]

Mnr L H FIELDING: Adjunkvoorsitter, agb Minister, lede van die Huis, besoekers, dames en here, die verkiesing van nuwe munisipale rade op 1 Maart bring hoop dat ’n beter vlak van dienslewering sal geskied. Dit sal alleenlik moontlik wees as munisipaliteite die foute van die afgelope vyf jaar vermy. (Translation of Afrikaans paragraph follows.)

[Mr L H FIELDING: Deputy Chairperson, hon Minister, members of the House, visitors, ladies and gentlemen, the election of the new municipal councils on 1 March brings hope that there will be an improved level of service delivery. This will only be possible if municipalities steer clear of the mistakes of the past five years.]

Many municipalities who need to appoint senior managers will have to appoint people with relevant skills and expertise. I think that it is common cause that the ANC-controlled municipalities all over the country, in these five years, did not strive for and strike the adjustable balance between affirmative action on the one hand, and skills and expertise on the other hand. No wonder the department’s own reports on skills found that employment equity and transformation will remain reasons for the lack of skills in municipalities.

The DA believes that municipal managers and senior staff appointed with correct qualifications should be paid market-related salaries and rewarded according to performance. The fact that over 50 municipalities which are under Project Consolidate award their municipal managers performance bonuses begs the question whether the managers deserve those bonuses.

Dis skokkend, as ’n mens kyk na die gebeure verlede week toe ’n LUR van die Noord-Kaap in hierdie Huis kom staan en verklaar dat ’n swak besluit agt jaar gelede deur die wetgewer in Kimberley geneem is waarkragtens R150 miljoen verloor is nadat dit aan kontrakteurs betaal is om huise te bou, wat nooit daardie diens gelewer het nie.

Daarbenewens sit die Noord-Kaapse regering die afgelope vyf jaar al met ’n agterstand van R150 miljoen, en ek kan getuig hiervan, want ek was destyds van 1994 tot 2000 ’n uitvoerende burgemeester van die ANC-regering. Ek kan dus getuig dat dit wel gebeur het. [Tussenwerpsels.] Hierdie agterstande bestaan al die afgelope agt jaar in die Noord-Kaap, en dit kan nooit reggesien word nie. Hierdie swakheid moet ek regstreeks voor die gewese LUR mnr Pakes Dikgetsi se deur lê.

Agb Minister, dis skokkend dat die arm mense op die grond daaronder moet ly. In Maart 1998 is ’n kontrak om 1 300 huise te bou aan kontrakteurs toegeken. Ek kan dit met hulle name bewys. Agthonderd-vyf-en-vyftig van die 1 300 huise is gebou. Die ander 400 is nooit gebou nie. Die LUR het hier verklaar … (Translation of Afrikaans paragraphs follows.)

[It is shocking, when one looks at the events of last week when an MEC from the Northern Cape came to this House stating that a bad decision was taken by die legislature in Kimberley eight years ago by virtue of which R150 million was wasted by paying it to contractors for the building of houses, when they never delivered that service.

At the same time the Northern Cape government has had a backlog of R150 million for the past five years, and I can bear witness to this, because in those days from 1994 to 2000 I was an executive mayor for the ANC government. Therefore I can bear witness to the fact that it did happen. [Interjections.] These backlogs have existed in the Northern Cape for the past eight years, and they can never be rectified. This weakness I must place squarely at the door of the former MEC, Mr Pakes Dikgetsi.

Hon Minister, it is shocking that the poor people at grassroots level should suffer. In March 1998, contractors were awarded a contract to build 1 300 houses. I can prove this by showing their names. Of these 1 300 houses, only 855 were built. The other 400 were never built. The MEC has explained here …]

Mr B J TOLO: Chairperson, would the hon member be prepared to take a question?

Mr L H FIELDING: Yes.

Mr B J TOLO: I would like the hon member to tell us which budget votes we are debating here today. [Interjections.] Is it Provincial and Local Government or Housing? Can he tell us whether he remembers that it is Provincial and Local Government, and not Housing?

Mnr L H FIELDING: Voorsitter, ja. Dit is juis dít wat ons mense agterlaat. Dis juis dít, Behuising ingesluit, daarom kan ons nooit Behuising losmaak van plaaslike bestuur nie. Dit is ongelukkig in my 22 jaar in plaaslike regering my ondervinding, dat alles daarby ingesluit is.

Dis jammer dat hierdie tipe besluite ons arm mense nou agterlaat, en dan sê die LUR in hierdie Huis daardie maatskappye is bankrot. As die LUR dan bewus is dat hulle bankrot is, hoekom gaan hy voort met hofsake teen daardie tipe mense? Dis nóg ’n uitgawe, nóg ’n verkwisting van geld van die belastingbetaler. Dis hierdie dinge wat ons ’n honderd maal in die wetgewer in Kimberley gedebatteer het, maar daar word geen veranderings aangebring nie. Dit is onaanvaarbaar. [Tussenwerpsels.]

Dit is ook baie duidelik dat plaaslike regering agtergelaat is omdat daar te veel kamerade aangestel is en mense nooit op meriete aangestel is nie. Dis dít wat die agterstand in plaaslike regering vandag baie duidelik kan wys. [Tussenwerpsels.] (Translation of Afrikaans paragraphs follows.)

[Mr L H FIELDING: Chairperson, yes. It is exactly this that leaves our people poorly off. It is exactly this, housing included, therefore we can never separate housing from local government. Unfortunately it is my experience, in local government for 22 years, that it covers everything.

It is a pity that these kinds of decisions are now leaving our poor people behind, and then the MEC states here in this House that those companies are bankrupt. If the MEC is aware that they are bankrupt, then why is he continuing with court cases against this type of people? This is yet another way of spending, of wasting, the taxpayer’s money. These are things that we have discussed in the legislature in Kimberley umpteen times, but nothing changes. This is unacceptable. [Interjections.]

It is also very evident that local government is being left behind, because too many comrades have been appointed and people have not been appointed on merit. This is clearly shown by the backlog in local government today. [Interjections.]]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Hon members, order please!

Mr L H FIELDING: We need broad public participation to make this form …

Mr D J BOTHA: Chairperson, on a point of order: The speaker there made a statement that people were appointed not on merit but because they were comrades. Is he not misleading the House in regard to that? Does he have any proof of that statement that he has made?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Would you correct your statement, hon member?

Mnr L H FIELDING: Voorsitter, nee, ek gaan nie my stelling korrigeer nie, want ek het soveel bewyse van sake wat aan die Openbare Beskermer voorgelê is in verband daarmee. Ek het gister nog so ’n saak aangemeld, so ek gaan dit nie terugtrek nie. (Translation of Afrikaans paragraph follows.)

[Mr L H FIELDING: Chairperson, no, I am not going to change my statement, because I have so much evidence of cases that were put before the Public Protector in that regard. Yesterday I reported another case like that, so I am not going to withdraw it.]

Mr M O ROBERTSON: Chairperson, would the hon member be prepared to take a question, please? [Interjections.]

Mr L H FIELDING: Yes, I don’t mind.

Mr M O ROBERTSON: I just want to know who wrote his speech for him, because he doesn’t seem to know what he is reading. [Laughter.]

Mnr L H FIELDING: Voorsitter, as die lid dit nog nie weet nie, ’n mens sit in hierdie Huis met ’n toespraak wat jy klaar geskryf het, en jy tel soveel punte op dat jy jou toespraak van tyd tot tyd kan aanpas, en niks verhoed dit nie. Ek dink ek sal daarmee volstaan. Baie dankie. [Tussenwerpsels.] (Translation of Afrikaans paragraph follows.)

[Mr L H FIELDING: Chairperson, if the member does not know it yet, one comes to this House with a speech that you have written already, and you pick up on so many issues that you can adapt your speech from time to time, and nothing prevents it. I think that I shall end with that. Thank you very much. [Interjections.]]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): I now call on hon Q D Mahlangu, Gauteng MEC for provincial and local government to continue the debate. [Interjections.] Hon Chief Whip?

The CHIEF WHIP OF THE COUNCIL: Deputy Chairperson, I have accordingly advised the Table staff that we should use the speakers’ list, which all members have on the screen. I am not sure whether that was brought to your attention.

The DEPUTY CHAIRPERSON OF THE NCOP: (Ms P M Hollander) I have L1 and L2. Which one is the correct one, please? Is it L2? Then it is hon Mahlangu.

Ms Q D MAHLANGU (Gauteng): Deputy Chair, hon Minister and Deputy Minister, hon MECs, my colleagues, hon members of this august House, comrades and friends, ladies and gentlemen, it is good to be back in the NCOP.

We have entered the phase of consolidating the developmental local government. During this phase, we must improve the way in which the three spheres of government relate and co-ordinate. Over the past five years I think we have tended to compete with each other, and I think that, during this phase, we must make sure that the co-ordination is improved for the better.

This is the phase where we must ensure that the municipalities are supported financially and otherwise in order to make sure that the Millennium Development Goals are realised in our country.

Gauteng’s election outcome was the second lowest in the country despite the fact that the province had the highest number of registered voters in the country, according to the IEC statistics.

As part of our objectives of deepening democracy and ensuring that individual constitutional rights are realised, we have to make sure that we improve voter turnout by making sure that citizens understand the responsibility that voting is not only to put people in power, but also to exercise your right and ability to question and to participate in government processes.

Secondly, we must change the mindset of South African citizens to make sure that the positive messages in relation to the local government sphere is improved for the better, because in the past five years, in particular the first term of local government, we tended to focus on negative things rather than the positive things that the municipalities have done in the country.

We must also make sure that we increase the civic education levels amongst our citizens in order for them to appreciate and understand what local government is all about, and what it is that the local government is doing. Sometimes the communities do not understand that the road that is in front of their homes, the water that they drink from their taps, and the sanitation and removal of refuse by municipalities from time to time, are services provided by the municipalities, not by the province or national government. Therefore we have got to make sure of civic education and understanding of local government. All of us should contribute to that improved understanding.

Thirdly, we need to improve and modify the way in which our public representatives are elected, so as to give the broader citizenry the right to choose their public representatives, in order to avoid some of the things that we tended to see, where people are contesting who their representatives are. We did not participate in these processes while respecting individual political parties’ right to choose their own representative, based on the electoral system that we have chosen.

In the province, we had five municipalities belonging to Project Consolidate. In some of those municipalities, we have registered positive gains since Project Consolidate started. This has helped the local government department in the province to give meaningful support to these municipalities, both human and financial. By human, I mean that we have been able to deploy some senior managers from the department of local government in the province to municipalities to go and work there, either as support officials or to some extent as acting municipal managers. Where there has been a lapse of services, we have been able to do that.

Secondly, in terms of financial resources, we have been able to allocate resources obviously provided by the provincial treasury to give meaningful support in areas where municipals were lacking.

Thirdly, some of the municipalities have been able to reduce their deficit, and the nonpayment of creditors where creditors were not paid on time. Municipalities were using payment of creditors, the money with which they were supposed to pay the creditors, as a balancing act in between them trying to meet their obligations. Fourthly, we have been able to reduce unaccounted-for water costs, working together with the Department of Water Affairs, the DBSA and Rand Water in particular around the issue. Because of the old infrastructure that we have in relation to water pipes, we have been able to reduce costs in some municipalities. Worthy of note is the municipality of Merafong, which is now part of the North West province. We are continuing to support that because the programme started before the cross-boundary issues were resolved. A second example is Mogale City and Kungwini. In these areas we have been able to register positive gains as part of the Project Consolidate initiative.

We have also been able to deploy engineers in Kungwini and Mogale City, in particular to focus on areas of project management units, where municipal infrastructure grant projects were not being enabled and capital expenditure was not spent accordingly, because there isn’t capacity in those municipalities. I think, because of Project Consolidate, it has helped the department to give impetus to its support programmes to the municipalities.

Together with the provincial treasury, we are focusing on ensuring that the municipalities in the province implement the Municipal Finance Management Act and to make sure that whatever requirements there are are met. This is also done to ensure that the municipalities, in accordance with the Act, are able to do those things, particularly the submission of financial statements on a monthly basis, the submission of quarterly reports and all other processes and policies that are supposed to be developed as part of implementing the Act.

We will soon complete the report on the work done by the Financial and Fiscal Commission, chaired by Dr Iraj Abedian, that of studying issues around financial management and the improvement of management of finances, generally, in municipalities where the Auditor-General has identified such a need. The report is going to help us on how to improve there.

We have an objective of making sure that in Gauteng, by the end of the term, all municipalities should receive a clean audit report. At the moment, we have difficulties because we do not have a clear support programme.

The department, over the past year, has been able to do a five-year performance review of all municipalities since 2000, and the report has identified areas on which municipalities, in this term, should be focusing in order to make sure that quality of service in our communities are improved for the better.

Issues of transformation have been identified. Where some municipalities have not been able to complete their organogram the report has identified those, and accordingly, we are working with municipalities in making sure that issues identified in the report are responded to. I think it helps us to give impetus to the delivery of services.

The province, together with municipalities, is in the process again of completing the plans with regard to the 20 identified townships, which is the programme that the Premier announced when he opened the legislature. The programme is mainly meant to improve the infrastructure in our townships, with regard to storm water drainage and paving because most of our townships do not have these. With regard to roads, community halls and schools where there are schools in those old townships that are no longer in good condition, the programme is aimed at improving those issues. Clinics and any other community infrastructure is covered by this programme also. Again, firstly, on the municipal integrated development plan, all municipalities in the province were able to submit their IDPs on time, in line with national legislation. Secondly, there has been greater alignment amongst municipalities in responding to the national spatial development plans and the global city regions. As you know, Gauteng is pursuing this vision of becoming a globally competitive city region.

Therefore municipalities, in their IDPs, have shown greater alignment. In some areas, there have been some difficulties in ensuring that there is alignment in particular between the budget and the IDP. Thirdly, we have to ensure that the provincial and national government and the sector department use the municipal IDP as an embodiment of all government planning in the country as a whole.

I think this is an area that needs a lot of improvement and I think, when we are supported by the Department of Provincial and Local Government, we will be able to address some of those challenges which we continue to face.

Former cross-boundary municipalities have been integrated into the new provinces. We are almost at the end of the process of signing service-level agreements with North West province and Mpumalanga, both at the receiving and at the handing over processes. Tomorrow, technical meetings will be taking place. I think we are well on course in making sure that, in these municipalities, there is no disturbance in service delivery but that citizens continue to receive those services.

Lastly, let us give all new municipalities our support, and to the newly elected councillors as well, because in some municipalities, if you have 30 councillors, 12 of them will be old hands, and 18 of them will be new. We have to make sure that we give support, even to those councillors. We have programmes, both at political level and at administrative level, to make sure that those councillors are assisted with delivering services in the areas of their jurisdiction. Thank you. [Applause.]

The HOUSE CHAIRPERSON (Mr T S SETONA): Hon members, I want to bring to your attention that I have been informed that there was consultation amongst various stakeholders to change the speakers’ list. The only speakers’ list that we will use is the one that I have. Don’t use the one that has L1’’ on it. I am usingL2’’. The previous one lists hon MEC Mafereka from the Free State province, who is obviously not here.

Mr M A MZIZI: Sihlalo, Ngqongqoshe neSekela lakhe, noNgqongqoshe bezifundazwe ngithi unwele oluthi. [Chairperson, hon Minister, hon Deputy Minister and Provincial MECs’, long live all of you.]

The most important function of the Department for Provincial and Local Government is to develop and promote a national system of integrated and co- operative governance. The budget allocated to the Department for Provincial and Local Government amounts to R24,9 billion for 2006-07. That is 55% more than what the department received last year. This is a very big increase, and it is largely owing to the increases in the local government equitable share and the municipal infrastructure grant. The IFP welcomes this increase.

However, spending the municipal infrastructure grant is a big problem. We note with the gravest concern that at least 22% of the MIG was not spent last year. This means that 22% of the available funds could not be translated into infrastructure projects and basic services. Minister, if this problem of underspending is not taken seriously, the intended beneficiaries of service delivery will suffer the consequences. They will not receive clean water and basic sanitation as promised, although the money is available to make their lives better.

We urgently need properly and accurately to audit municipal infrastructure grant spending and projects to establish why all available funding is not being spent and what the role of the developers is in using subsidies for infrastructure purposes.

The IFP supports the idea that the provincial authorities should make more periodic visits to local government to establish the true facts of service delivery at grass-roots level. More monitoring and fact-finding missions are clearly needed to find out exactly where the shortcomings and weaknesses of delivery are located.

Finally, we know that more than R30 billion is owed to local government throughout South Africa for services that were delivered. This will probably not change until the problems of massive unemployment and poverty have been addressed. Job creation is not strictly speaking the purview of the DPLG but improved service delivery will, no doubt, have a positive impact on people’s lives and reduce poverty.

Kule mizuzwana nje emincane esasele uma sikhuluma nge-MIG, sikhuluma ngalolu hlelo olubizwa nge-Municipal Infrastructure Grant. Ngingasho nje ngithi ubungozi esibubonayo lapha busekuthenini uma – angenze isibonelo ngendawo elaphayana abayibiza ngokuthi kukwaMinanawe ngaseBenoni – izindlu sezikhishelwe abantu sebeyofuna okhiye kuthiwa kubo kufanele bakhiphe imali yentela. Abantu bakithi-ke abazi ukuthi imali yentela ikhishwa nini. Abanye bayayikhokha kanti abanye abanayo. Ngakubamba-ke lokho ngase ngikubika eMnyangweni wezaseKhaya. Ngingasho nje Ngqongqoshe ukuthi kuze kube manje lolo daba angazi ukuthi lwaphelelaphi. Yilokho-ke esikushoyo ukuthi kuyasibambezela ekwenzeni ukuthi uhulumeni enze isimo sibe ngcono kubantu.

Okunye-ke ukuthi umangabe le mali yengqalasizinda ingakhokhwa bese isetshenziswa, uthola ukuthi abakhi bezindlu basebenzisa imali yomxhaso kubantu bathi abakhokhe imali yengqalasizinda, bese kuthi le mali axhaswe ngayo ingabe isenela ukuthi akhe le ndlu okufanele ayakhe. Ngingasho-ke lapho Ngqongqoshe ukuthi uma singakuqapheli lokhu, sikumele impela futhi sikusukumele … (Translation of isiZulu paragraphs follows.)

[In the few minutes left, let me tell you that when we speak of MIG we speak of a programme called the municipal infrastructure grant. I want to mention that we foresee a danger. For example, in a place called Minanawe next to Benoni, houses are being handed over and people are told to pay tax. Our people do not know at what stage they are required to pay money.

Some do pay the money, but others do not have it. I discovered that practice and reported it to the Department of Provincial and Local Government. I must say, hon Minister, that up to now I do not know what happened in that case. That really causes delays for the government in improving the lives of our people. Another problem is that if the infrastructure grant could be paid out, one would find that the contractors would use the housing subsidy and charge the applicants the infrastructure expenses. This leaves the contractor unable to build the house he has been contracted to erect. Hon Minister, I must say that if we keep an eye on this, monitor it and also take it seriously …] E tla nyanya ka mokokotwana mma yona a ntse a le teng. Ha e be khotso. [We will speak on behalf of the people. Thank you.] [Laughter.] [Applause.]

The DEPUTY MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson, hon Minister for Provincial and Local Government, the leadership of Salga, hon MECs and hon members, I just want to briefly say to the hon Fielding: You have been in local government for 22 years and that explains your mindset. What has also happened is that this transformation of the past 11 years has not managed to change that particular mindset.

There’s a by-election in Tafelsig that will be taking place, I think, a week from now. It’s amazing that the DA is busy campaigning in Tafelsig. In 2000, the people of Tafelsig suffered when water was cut off and some were evicted from their houses in winter by the DA … [Interjections.] … until I had to intervene and call a moratorium on the evictions of poor people. Now it’s very interesting that the DA was in control of the city in 2000 and they managed to achieve just that – to treat poor people in that manner.

We present this Budget Vote before this House after having successfully conducted the second local government elections, which were declared free and fair. We also noted the large voter turnout compared to our first local government elections. This could only mean our system of local government is improving and that our people have clearly seen the relevance of this sphere of government in their lives. We, of course, could not be proclaiming this victory without the pivotal role that this House has played in bringing about these local government elections.

Our system of local government is based on social dialogue wherein communities and the public at large are required by legislation to influence and direct policy and development within their municipalities. Indeed, the last term of local government was marked by both achievements and challenges.

The interactions with our communities and local governments, and local ownership of local development processes - including participation in the initiatives that are aimed at the identification and prioritisation of developmental needs - form a critical cornerstone that defines our system of social dialogue.

It is undeniable that more people share in the hope that our President talked about and that is where we are headed as government. An improvement in greater public participation through ward committees and ensuring that each ward has a voice in how its municipality should be governed are going to occupy centre stage in this term of local government.

South Africa recognises that culture, religion and language are central factors in the holistic development of a nation. It was befitting therefore that in 2004 we saw the commission for the promotion and protection of these rights come into operation to entrench their role of facilitating communication between communities and government in terms of these issues.

Whilst we learnt from the municipal izimbizo programme that most ward committees have been established and members understand their critical role as linkages between the municipality and communities, we equally noted areas that inhibited the effective operation of these ward committees. We continue to encourage communities to participate in these structures and support our local government system to be responsive, transparent and accountable to our communities.

We also recognise the role of traditional institutions in our development path. We have finalised legislation that has transformed the composition of traditional councils to provide the elements of democracy. We are encouraged that the traditional leadership now plays a part in the national, provincial and local spheres of government’s development agenda. We envisage a partnership with the traditional leaders that must lend a hand in uplifting the standards of living for an estimated 14 million people living in the rural areas.

It is essential that we create conditions in which the local economy can grow. The government’s framework for stimulating the local economy clearly indicates the need for sustainable community investment programmes. Municipalities have a responsibility to see that available opportunities are properly utilised at local level. There is ample scope for innovative ideas and practices in this regard, which can frequently be developed through community stakeholder participation.

With regard to disaster management, the heavy rains that occurred in the North West province between January and April this year resulted in flooding and caused extensive damage to infrastructure in the Greater Taung Municipal area. Even though we are confident that our National Disaster Management Centre is gradually enhancing its capacity to detect and respond timeously to these occurrences, we note that good governance is a prerequisite for effective disaster management and, more broadly, for sustainable development.

Significant advances have been made in this regard to keep up with international standards in terms of a paradigm shift from response and recovery to that of prevention and mitigation. We must ensure that natural hazards, which are inevitable, do not necessarily turn into major economic and social disasters.

In conclusion, the local government elections held on 1 March marked the beginning of a second term of office for elected mayors and councillors since the introduction of our new system of local government in 2000. This is an important milestone in strengthening the democratic participation on which our Constitution is founded.

If we all agree that poverty is not just a lack of physical resources for development but also implies powerlessness or the inability to exert influence on those forces which shape our livelihoods, then it is therefore important to create opportunities for all our communities to participate and contribute in structures of governance, including women and youth. Local government plays a pivotal role in this realisation.

We have asked ourselves some key questions as we started this term of local government that have led us as government to the same conclusion, and it is that we cannot stand before you in 2011 without saying to you that we are on a sustained path for better service delivery to our communities. I thank you. [Applause.]

Mr N D HENDRICKSE: Chair, hon Minister, hon Deputy Minister, hon members of the House, the Ministry has introduced some sound governance arrangements related to performance-management contracts for mayors. Given the need for stable local government, we cannot have a situation in which new political parties gain control of some municipalities and municipal manager contracts are terminated at huge cost to ratepayers. Often service delivery is stymied by premature political appointments.

However, the issue of salaries for municipal managers is still problematic. We cannot allow a municipal manager of a small municipality to earn an excessive package way above that of managers of larger metros. A proper remuneration grading system is required based on skills levels, experience and successful outcomes.

The affairs of Salga need to be tightened up. This structure has been plagued by inefficient financial management. This body plays a critical linkage role in stakeholder relations amongst various constituencies and must operate optimally. The implementation of the Intergovernmental Relations Framework Act of 2005 is necessary, given the lack of policy coherence especially between provincial and local tiers of government, and the land issue is a question here.

The interventions of Project Consolidate must start showing results now in targeted municipalities. More focus should be placed on full implementation of the Local Government: Municipal Finance Management Act.

I think that we have reached a level at which corruption at the municipal level has become systemic. As the President said, councillors should stop treating municipalities as cash cows, gaining control of resource and using their power to gain patronage. Hence, it seems the anticorruption strategy has come far too late for the millions that have already been embezzled. The UIF supports this budget. Thank you. The HOUSE CHAIRPERSON (Mr T S SETONA): Thank you, hon member. I proceed to call the hon S Kwelita, the Eastern Cape MEC for provincial and local government.

Mr S KWELITA (Eastern Cape): Deputy Chair of Chairs, hon members of the House, representatives of Salga, I stand here to support the budget presented to this House by the Minister, and also to reflect on the actions we are taking as a province in support of the budget and the objectives that have been set by the hon Minister.

Firstly, we note that the first local government elections have laid a strong foundation for the process of consolidating and building a strong local government in our country. On an institutional level, we believe that we have a foundation in political administration and also in the community- participation sector. We also believe that there are witnesses that we should strengthen in this term of local government to ensure that we perform better than we have done in the past five years.

The second thing that we want to raise in relation to this term has to do with the challenges that still face local government in the areas of service delivery and capacity, in infrastructure and backlogs, and in public participation. We believe that these areas are important as they will ensure that we are able to do what we have promised our people - if we concentrate and focus on these important areas - which is to build a better life for all. We have also decided to focus on particular areas as part of achieving the objectives of this budget. One of those areas is around strengthening the integrated development plan processes. We believe that we have improved compliance in terms of the submission of these important documents, but if you look at the quality of the documents you will discover that there are gaps and a lot of work that we still need to do.

Also, in the area of sector department participation, we believe that that area needs some attention to improve our participation. Our participation should not be seen only in terms of our attendance at these meetings, but also in line with our plans which will be reflected in these IDPs. This is an area at the provincial level we are beginning to handle in terms of ensuring that there is proper participation.

We are also trying to develop champions in the IDPs, both at community level and at the municipality level and also with regard to the provincial government. In this regard, we have undertaken a programme of training that will train about 80 people for the first period of six months and also take the 80 again for the second period. We believe that in this way we will be contributing to development of champions at community level for this process that is so important for our communities.

The other area of focus would be to ensure that we are receiving the reports we should be receiving in terms of the legislation, and not only receiving these reports but analysing them too because we believe that if we perform this function properly, it will assist us to deal with the problems that have been identified through the Project Consolidate process. We believe that if we do that we will be able to get our early warnings and will be able to make the necessary interventions that we need to be making.

The other area we feel is important at provincial level is that of focusing on the budgets of municipalities. A brief analysis of the budgets of municipalities has reflected that there might be gaps in the process of developing these budgets that we will have to attend to.

We believe that if these gaps are not attended to properly, this could result in the weaknesses that we see in financial management and in the debts that municipalities accumulate from time to time.

We believe that these areas, together with other areas that will be areas of focus, will help to strengthen and achieve the goals that have been set through this process of developing this budget. We believe also that we would be playing a meaningful role if we also focused internally in the department. Internally, we believe, the department has weaknesses both at the level of quantity and quality. We have developed a process to look at how we can address the process or the problems around quantity and quality issues by recruiting more people and ensuring that we have the people with the requisite skills.

We also believe that we need to do an assessment of the staff we have. One of the indications we have as a department is that in the process of building provincial departments and absorbing some of the staff from municipalities, we identify and absorb people at levels whom we’ll have to consider in terms of whether they are appropriate for the work that we want to achieve of strengthening local government. We believe that these should be the areas of focus and that these areas of focus should help us to achieve the objectives of this budget.

Together with this House we want to align ourselves with the requests that have been made here to support the passing of this budget. Thank you very much, Chairperson. [Applause.]

Cllr C JOHNSON (Salga): Chairperson, hon Minister for Provincial and Local Government Sydney Mufamadi, hon Deputy Minister for Provincial and Local Government Nomatyala Hangana and members of the NCOP, the President, in his state of the nation address in February this year, remarked that, and I quote:

While we must indeed celebrate the high levels of optimism that inspire our people, who are convinced that our country has entered its age of hope, we must also focus on and pay particular attention to the implications of those high levels of optimism with regard to what we must do together to achieve the objective of a better life for all our people. We must ensure that the machinery of government, especially the local government sphere, discharges its responsibilities effectively and efficiently, honouring the precepts of Batho Pele.

Salga believes that, in order for local government to discharge its developmental responsibilities in an effective way, national and provincial government must at all times, as alluded to by Minister Mufamadi, strengthen their role of support and of monitoring the policy outcomes of municipal infrastructure investments. The efforts of these spheres of government should focus on improving the capacity, efficiency, effectiveness, sustainability and accountability of the local government sphere, and making the integrated development plans the primary mechanisms for intergovernmental co-ordination. Other spheres should also ensure that their planning processes are aligned in order that we may have predictable outcomes for our citizens, particularly the rural poor and marginalised groupings.

Local government will receive R8,3 billion in 2006-07; R10,5 billion in 2007-08; and R13,9 billion in 2008-09 of the equitable share, which is an upwards revision to the baselines by R1,6 billion over the next three years. It is noted with appreciation that the revised equitable share also makes provision for a revised remuneration framework for councillors and environmental health care services. Government also provided R7 billion in 2006-07, R8 billion in 2007-08 and R9 billion to compensate local government for removal of the Regional Services Council, RSC, levies. We want to challenge the business sector to reinvest this windfall into local economies to create not only more jobs but quality jobs.

Furthermore, Salga notes with appreciation the transfer to local government regarding infrastructure, through the Municipal Infrastructure Grant, which amounts to R21,4 billion over the Medium-Term Expenditure Framework, MTEF.

Although there is improvement in spending, as mentioned by the Minister, the lack of capacity in municipalities to understand and respond correctly to MIG conditions and sometimes unco-ordinated processes of transfer of funds, particularly late transfers by provincial governments, still contribute to underspending, especially by rural municipalities.

Joint efforts by the department and Salga to address the impediments which impair the capacity of municipalities to effectively implement planned projects will surely lead to improved spending of these funds in the next financial year.

Salga welcomes the intergovernmental legislation; and we hope that its implementation will further enhance the intergovernmental co-ordination and implementation mechanism within the three spheres of government. Seamless government will ensure that the oversight role of the different political structures will be strengthened. Currently, Salga is in active engagement with the NCOP around this. Citizens do not differentiate between various powers and functions. We are one country and one government and as such, our system of government did not create certain centres of power at local government levels that can be abused, when people regard them as their own fiefdom.

As mentioned above, capacities of municipalities are uneven across the country. This is a result of competition for scarce skills, the inadequacy of the systems and the complexity of the delivery environment. Salga, in support of the Department of Provincial and Local Government’s five-year strategic plan, has started to implement the following capacity-building programmes.

A councillor induction programme was conducted in April. Its main objective was to provide guidance for newly-elected municipal councillors in order for them to be able to execute their responsibilities with utmost expertise and values. An executive municipal leadership development programme has been designed for key local government decision-makers, primarily senior officials and also councillors who have management responsibilities. The programme will, through accelerated interactive practical training, capacitate local government practitioners with the necessary working knowledge to carry out their duties effectively in pursuit of the vision and mission of their respective municipalities. The training will be conducted in partnership between Salga and the University of Pretoria’s school of public management and administration and as such, participants will be awarded university certificates at NQF level 6.

Ward committee training has started, and the programme will be conducted in partnership with the Department of Provincial and Local Government and it will focus on ward committee members to be trained in public participation. It is local government Seta accredited at NQF level 2, and it is a structured training course.

During 2004 Salga adopted a new Constitution and restructured itself. It has become a unified body representing all nine provinces and 284 municipalities. This in itself caused a major shake-up, especially as far as financial management of the various provincial bodies is concerned and has therefore led to certain deficiencies being identified, as far as the financial management of the different provincial bodies is concerned. It has also led to a qualified audit report and we are currently addressing this.

Salga would also like to call upon National Treasury and the Department of Provincial and Local Government to discuss the developmental role of local government outside the scope of the equitable share. Currently, the equitable share factor is factored in as zero, because there is no common agreement of what the developmental factor within that formula is. We believe that this discussion should take place outside of the scope of the equitable share.

We want to thank the director-general of the provincial department for hard work and ensuring that we do have a plan to make local government work better. Salga supports the Budget Vote on Provincial and Local Government. I thank you. [Applause.]

Mr R DYANTYI (Western Cape): Sihlalo, uMphathiswa wezaMaphondo nooMasipala ohloniphekileyo, neSekela lakhe, amalungu eNdlu, noogxa bam kwamanye amaphondo … [Chair, hon Minister for Provincial and Local Government and his Deputy, members of the House, and my colleagues, fellow MECs in other provinces …]

… I rise to support this Budget, but also to take directives from both the Minister and the Chair of the NCOP from what they have said, and throughout therefore I proceed in terms of what I want to say.

I do want to remind members that as an MEC for Local Government Housing in the Western Cape, the elections have left me with a particular challenge. I have a scrambled egg in my hands, as out of 30 municipalities there are only four that have been won outright, in 26 of those there are still going to be negotiations, struck deals, and all of that. That is a recipe for short-term measures. In a way many of those municipalities instead of running a marathon prefer to run 100 m, because they do not know whether tomorrow they will be there or not. [Laughter.] Therefore that is a particular challenge that you are dealing with.

I do want to make the point that our relationship with the municipalities is informed by our national programme of action, and the five-year strategic agenda for local government. We have all of these coalitions regardless of who controls or runs what, but all of them have to conform to the national programme of action. Therefore the focus from the position where I drive as an MEC, and my department, will be to ensure that all of them are going to be focusing on those five key performance areas, which include issues of provision of basic services, promotion of LED, financial viability, good governance and public participation, institutional development and transformation. This is going to be the hymn sung to all municipalities in this province. And I must say that we have started doing that already in this particular province.

I think I also need to stand here so that as part of sharing accountability with the Minister - because he raised policy issues - my role is to tell you what exactly we are doing in terms of actions. In relation to that key performance area point one of institutional development and transformation for example, there are already a number of issues that we are taking care of. We have already agreed with all municipalities in this province that come 1 July 2006 we will have no acting municipal managers, but all municipal managers will be permanent. [Applause.] That is across the board and it allows us to therefore go to the next level in terms of the capacity- building of our municipalities, because if you cannot get it right at that level you might as well just forget about proceeding and going anywhere. That is the first area in terms of how we are moving forward in dealing with those kinds of issues.

In terms of the second area on the programme, which is basic service delivery, members would be aware that, at least as a province, Mr Fielding and uBab’uMzizi, we have spent 100% of our MIG allocation in the province; and because we want to do that continuously the municipalities have been worked on so that by the end of March, which is the end of the provincial financial year, we want all municipalities to have spent their MIG allocation so that we don’t proceed to June. That is the only way that I am able to interact with Mr Mufamadi and his department to say I need more, when we are able to spend what we have been given.

Over and above that there is the issue of the eradication of the bucket system. As a province we have already started the implementation of that plan. The Premier is very hard on us on that issue. There are a number of municipalities that have already started the implementation of the bucket system eradication issue.

Linked to this issue of basic services is the fact that this province is also known for disasters that are occurring on a daily basis. I was happy that the Deputy Minister was raising this issue. In that regard we are working hand in hand with municipalities in support of them, because you will be aware that just a few months down the line we had fires, and on the next day floods and all sorts of issues within one province.

The issue that we are picking up and driving here in giving support is that we are saying to municipalities we have made a study of the capability of fire fighting services, which are in dire straits in terms of whether it is vehicles and in districts, and all of those kinds of issues. But we are also picking up a few things. One is that amongst the causes of fire there are two main issues where - maybe some of you members who are sitting here

• people would smoke and take the stompies en gooi hulle uit die vensters uit. [cigarette butts and throw them out of the window].

We are stepping up law enforcement in terms of that. Firstly, all municipalities are now going to have fire bylaws where we are going to have penalties around those kinds of issues.

Secondly, as informal settlements have been set alight simply because a lover was not happy with another lover, and therefore the entire human settlement is set alight we are also going to be enforcing those kinds of issues so that there are certain things that we can prevent in terms of disasters, and we are focusing on those kinds of issues to see how we can proceed.

Thirdly, in terms of financial viability and sustainability, we have met twice already with the AG’s office in understanding the financial issues around all municipalities in this province. Together with Treasury we have stepped up a programme of how we are going to deal with issues of data control, asset management, late submissions of financial statements and all of those issues. In my Budget speech we have raised a plan for engaging with those matters, because the purpose is for us to improve on those kinds of issues, come the next financial year. Already in terms of the 30 municipalities we have a 20% improvement in their financial health and status arising out of the AG’s report, and we want to keep that and improve on that issue and never move back on those kinds of issues.

We have also begun a programme that we call the Local Government Medium Term Committee together with Treasury and the Department of Environment and Planning where we spent three weeks with municipalities. We utilised three to five hours for each municipality, and we are dealing with issues like IDP, LED and the financial health of municipalities in focused discussions. We have just come out of that process. It has helped us a lot in terms of how we need to move forward in working with all of these kinds of municipalities.

Included in IDPs is that we are saying to municipalities amongst the chapters that we are going to have there will be one on human settlement strategy, as part of your IDP. Therefore it is neither an add-on issue nor an isolated one, but it has to be part of that. Just this morning before I came here I attended a course where I was addressing all the ten Project Consolidate municipalities, because we were training them on human settlement strategy. They are here today with their senior managers so that we are able to inculcate this culture of moving away from issues of quantity access to quality access beyond what we were able to do in the last ten years.

Fourthly, we are also working very hard on issues of good governance and public participation, and in that regard the key issue out of that from this province is that of us driving the anticorruption drive in which we do not care whether you are rich or poor, black or white, a woman or a man, young or old. It is a programme that is going to be affecting all people whether it is in municipalities or in relation to housing corruption.

We have a programme to unravel certain issues there, and we are succeeding. A few people are appearing in court and others are behind bars, and that is in terms of the importance of this. I think the Minister was raising this, and all I am indicating is the kind of actions we are taking and the kind of progress we are making in relation to those kinds of policy issues, because we have got to talk about practical thinking in terms of how we are moving and marching forward on those issues.

In relation to issues of public participation for example, our own Community Development Worker Programme is getting results. I think the Justice Department was very happy in January and February to utilise our CDWs. For two weeks they were able to trace 800 beneficiaries of the maintenance grant, and a successful programme that we were able to do with our CDWs. Therefore the role they play becomes that one of reinforcing government and ensuring that we strengthen our public participation arms and all of those kinds of issues. I am raising this in relation to those five key performance areas, because it is important for us to do all those kinds of things.

The fifth issue is that of LEDs, which have to be aligned to your EPWPs, but also linked to the Asgisa programmes that we have in all other provinces. In that regard we are working in tandem in partnership with the relevant departments, public works, transport, economic development and so on.

In terms of Intergovernmental Relations Structures, in this province we have been able to constitute all of those structures. We had a successful Councillors’ Summit in terms of councillor training. Later this year we are going to have training focused on women councillors. We are not just celebrating the 50th anniversary. We know that more women councillors are now in Local Government and therefore we have got to step up a gear in terms of a focus on that. As a province we have identified and prioritised that programme whether there will be mayors, Speakers, or Deputy Speakers we want to proceed in that regard. I see that the Chair wants say my time is up, but … Thank you very much. [Time expired.][Applause.]

The HOUSE CHAIRPERSON (Mr T S Setona): I am happy that the hon member was able to look at the clock and see that he is actually consuming his time, you know, because other members ignore it, and they will be suspicious about the discretion of the Chair whilst the clock is there in front of them.

Mr A L MOSEKI: Hon Chairperson, hon Minister, Deputy Minister, MECs, colleagues, I think we should start by saying that we are very happy as citizens and communities because the budget that we are debating today is about service delivery to areas or residences where we reside.

We also want to say that in the past 12 years of our freedom we have witnessed our democracy developing from strength to strength. This was confirmed by the people of this country when they voted the ANC into power again in the local sphere of our government. For that reason, we will forever be grateful to our people and our communities. Quality service delivery is what they deserve for having voted this government back into power.

Chapter 12 of our Constitution outlines clearly or establishes the municipalities or wall-to-wall municipalities in this country. That chapter further outlines the authority of, and objectives, that must be achieved by that sphere of government. We want to say that it is in that context that the department made a presentation to the select committee. When that presentation was made, regarding the strategic plan and budget, the committee was overwhelmingly impressed with the achievements registered in the past financial year, particularly around Project Consolidate.

As a select committee, we want to say that while that achievement was made, we have also observed that there are a lot of challenges that remain to be dealt with. For instance, we have discovered or observed that a number of municipalities’ revenue collections that may assist the local government to be financially viable and sustainable are not yet up to scratch.

I want to take as an example one municipality in Mpumalanga that had a very serious problem, Thaba Chweu. The province was then forced to evoke section 139(1)(b) of the Constitution as a result of that crisis. Let me just give you a brief report about the situation. Recently we received a report from that municipality. The report was impressive and made us realise that the situation has turned around. Regarding some of the important lessons that might have been learnt there, we want to urge the department to take those lessons and use them in attending to other municipalities that might be having similar problems.

Some important achievements that were registered by this municipality were: eradication of corruption; strengthening of the systems that existed in that municipality that had made it not function properly; and stabilisation of the relationship between the administration and political machinery. But the most important achievement was the collection of outstanding revenue by the municipality. We think this is a success that can be used in other municipalities to improve service delivery.

The second important challenge remains infrastructure development, particularly in the rural municipalities. It is very clear that, in relation to this aspect, a number of municipalities are not able to achieve very basic service delivery to the communities, such as the free basic services and others. When you try to establish what the problem is, you then discover that the infrastructure is the main problem. Some of these municipalities do not have the infrastructure that can assist them to deliver those free basic services.

The third challenge is to strengthen the interaction among the spheres of government around the integrated development plans, IDPs. It has become very clear that, whilst the department and the local municipalities are working very hard to address this aspect, there is a lot that still needs to be done to ensure that we strengthen our co-ordination in order to deliver services timeously to our communities.

We, as the committee, say that the department has done a lot within the limited resources that they have. There will be no fundamental reason for us to say this budget should not be adopted. Therefore the committee moves for the adoption of this budget. [Applause.]

The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Chairperson, hon Deputy Minister, MECs, the leadership of Salga, hon members, I cannot let this opportunity pass without expressing the department’s and the Ministry appreciation for the co-operation and support we have always received from this House, especially from the Select Committee on Provincial and Local Government and its chairperson. I also want to express a wish and a hope that working together we shall become an even more effective instrument for good governance and sustainable development.

Mhlekazi uShiceka, ungadinwa nangomso. [Mr Shiceka, keep up the good work.]

The hon Moseki spoke about the need for us to ensure that the successes that are realised in the course of implementing Project Consolidate made widely known. He gave the example of a municipality in Mpumalanga where, following the intervention made in terms Project Consolidate, we were able to put the finances of that particular municipality back to good health. Indeed, it is our intention to make sure that all the lessons of experience gathered in the course of implementing Project Consolidate – the good and the bad - are shed so that the positives that come out of it can be held out for emulation. The outstanding challenges can also be used to work out how best we can improve our performance. This is an ongoing challenge that we face and we are hopeful that things can only get better when we work together.

The hon Chairperson of the Select Committee spoke about the need for us to give the same focused attention that we are giving to local government to the provincial sphere of government. We have chosen to start small with respect to the provinces. We are presently looking at the capacity of provincial departments who have responsibility for local government affairs to look at their capacity, firstly to support municipalities but also to mobilise province wide resources in order to ensure that there is proper co- ordination across the three spheres of government. We think that the lessons that will come out of that will help us to better position ourselves to say what additional support do we need to give to provincial government.

At the same time we are working closely with the provincial government sphere looking at how can strengthen the provincial growth and development strategies and create the necessary synergies between those strategies and the integrated development plans of municipalities as well as with the national spatial development perspective.

Hon Shiceka also spoke about the need for members of the ward committee to be compensate for out of pocket resources that they have for out of pocket expenses that they incur in the course of doing their work. In fact, one of the reasons why the equitable share of local government has been improved was to ensure that the institution-building component thereof could be used to address this particular problem that he have raised. But of course there many competing pressures at that level, which means that this is a matter that all of will have to pay continuing attention to. We need to check to what extent are the municipalities prioritising this need to allocate recourses towards making sure that the ward committees can become even better in terms of their functional capacity.

The hon Mzizi correctly spoke about the need for us to improve the spending capacity of municipalities. He noted that, as he put it, last year the spending rate was low – only 22% of the MIG was not spent last year. I guess he is right to insist that the expenditure rate must be 100%. But, you see, when we mention 28% we must then tell what the difference between 100% and 22% is, because then it will become clear that at least 78% of the MIG allocation was spent as at the end of April. The financial year of local government has not even ended yet. So we need to check on those trends where we would possibly be standing at the end of June. Of course, we intend to make sure that we continue to increase the spending rate. But I think as I said that it is important for us to always try to agree whether we are looking at a half-full glass or a half-empty glass so that the it can be agreed about the exact nature of the challenges we face.

The hon Mokoena also spoke about the continuing tensions between some traditional leaders and some councillors. I was happy that he emphasised some councillors and some traditional leaders because the fact of the matter is that we really have come a long way in terms of improving working relations between the National House of Traditional Leaders and elected public representatives, as well as between the provincial houses of traditional leaders and their counterparts. There still are problems and it is for this reason that all of us – the MECs, in particular - need to make sure that they keep the situation under close watch for any manifestations of hostilities so that such hostilities can be diffused.

I agree with the hon Mr Fielding when he said he refused to be drawn into drawing a dichotomy between the housing and the local government function. The only thing that I found astounding in what he had to say later was when he drew a distinction between comrades and people. [Laughter.] He says that one of the problems in local government has been that rather than employing people with qualifications, preference was given to the employment of comrades. But as he went on to talk about his own CV, it became clear what kind of a person we are dealing with - 22 years of experience in local government.

He also said that at one point he was an ANC executive mayor in the Northern Cape and now he has bought into the intellectual scam of the DA, which makes a distinction between people and comrades. [Laughter.] I thought it is important to ask him at least in this day and age to wake up and smell the coffee because it is these comrades who made it possible for him to stand in this House and get away with saying things which do not make sense. [Laughter.] Thank you, Chairperson. [Applause.]

Debate concluded.

Business suspended at 12:05 and resumed at 14:00.

                          Afternoon Sitting

The HOUSE CHAIRPERSON (Ms M N Oliphant): Hon members, firstly, I would like to welcome the Minister of Minerals and Energy, the hon L B Hendricks, and the officials from her department. I also want to welcome the special delegates who are present here today. I will call the Secretary to read the Second Order of the Day.

                         APPROPRIATION BILL


                           (Policy debate)

Vote No 30 – Minerals and Energy:

The MINISTER OF MINERALS AND ENERGY: Chairperson, colleagues, hon members, ladies and gentlemen, I stand before you today on my last day as the Minister of Minerals and Energy. I’m also informed that this is the first time the Department of Minerals and Energy Budget Vote has come to the NCOP.

It has been an exciting and interesting 10 months for me, and I believe that we have accomplished a great deal over this period. Some of the highlights during the past year would include the following. On a macro level we have seen a global commodity boom, which has dramatically increased the prices of minerals mined in South Africa, in particular platinum and gold. These high prices have favourably impacted on the South African mining sector and our economy.

Secondly, the passing of the Diamonds Amendment Act and the Precious Metals Act, that are set to contribute positively towards greater levels of beneficiation in our country, herald a new dawn in beneficiation for our country. We have also, as a department, been working closely with industry in running commodity workshops in order to develop strategies with industry players for the effective use and beneficiation of our minerals.

Okwesithathu, inhlangano ebhekela abasebenza ukumba umnotho abasebancane abasafufusayo ebizwa phecelezi ngokuthi yi-Small Scale Mining Chamber isunguliwe ngoJulayi walo nyaka odlulile. Izoba wusizo olukhulu ekubathuthukiseni laba abafufusayo kwezezimayini. Umnyango wami-ke uyakuthokozela kakhulu ukuba khona kwale nhlangano futhi uyakweseka lokho okuhloswe yile nhlangano ye-Small Scale Mining Chamber. (Translation of isiZulu paragraph follows.)

[Thirdly, the SA Small-scale Mining Chamber which aims at helping the small- scale mining community was formed in July last year. This chamber will go a long way in helping to develop the emerging industry players. My department is pleased with the formation of this chamber and it fully supports its cause.]

Fourthly, a number of broad-based black economic empowerment deals have been announced, which were effected largely as a result of our legislation. Our department has had to be vigilant to ensure that these deals were indeed broad-based and that they, in fact, involved women from the very beginning.

This is because experience has shown that with all the deals brought to the Deputy Minister and me, we would ask where the women were in the deals and they would say that the women were there. But where were they, because physically we could not see them? Regarding the women that were mentioned, when you asked them they didn’t even know they were in the deal. So, that is a worrying factor as far as the deals that have come before us are concerned. We have had to intervene decisively, and to all those men in their jackets who came to ask for our support we would say that the women must be involved. It is in that way that we have managed to get more women involved in the empowerment deals.

South Africa hosted the Annual African Mining Partnership Forum, which involves a number of my colleagues from other African mining countries coming together to interact and collaborate on projects for the growth of this sector in Africa.

We also held the first-ever World Petroleum Congress to be hosted on African soil, which, I believe, was a huge success. In addition, we hosted the first-ever African hydropower conference, which we co-hosted with the Department of Water Affairs and Forestry, to look at improved regional collaboration on the use of water for energy purposes. There have also been a number of other bilateral and multilateral interactions between the department and our African colleagues in order to promote economic development in line with our Nepad programme. Also, this past year saw the fatality rate on the mines drop by 16%, from 0,25 fatalities per million hours worked in 2004 to 0,21 in 2005. We have also seen, likewise, the injury rate dropping by 8%. Obviously, our aspiration is that we have fatality-free and injury-free places of work as far as mining is concerned. So that’s what we must target.

Over the past year the department has increased the speed at which mining licence applications are dealt with, and we are overcoming the backlog we experienced by improving the administrative structures dealing with applications.

Last year 6 785 applications for mining licences were received by the department, of which 957 were rejected mainly because they were incomplete. One hundred and ninety-one were withdrawn, 861 were refused for noncompliance with the Act, and 912 were issued. The balance of these applications is still in the system.

There has also been a great deal of progress over the past year with the electrification programme, with 150 000 houses having been connected. Under this programme, over 500 schools were electrified, and I was fortunate enough to have officiated at “switch-ons” in the Taung District of the North West province.

The Department of Minerals and Energy has also made a number of gains during the past year in improving the environment. This saw us introducing cleaner fuels, which have been remarkably well received by the consumers.

There were also a number of challenges that we experienced over the past year, in particular the electricity outages here in the Western Cape and the fuel shortages that we experienced in December last year.

Umnyango wami uzithathela phezulu lezi zinselelo zokushoda kogesi eNtshonalanga Koloni kanye nokushoda kuka-petrol ezweni. Le nselelo izosisiza ekuqhubekeleni phambili ukwenza ngcono isimo sokutholakala kwamandla kagesi. [My department is taking up very seriously the challenges regarding electricity outages in the Western Cape and the fuel shortages in the country. These challenges will, however, help us to improve electricity distribution.]

With regard to the Department of Minerals and Energy budget itself, this budget of R2,548 billion I table today will go towards continuing the good work that has been done over the past year and also towards addressing some of the challenges I mentioned that are faced by the department. I would like to outline some of the key issues for the DME during the 2006-07 financial year.

With regard to regional offices, my department has offices in each of the nine provinces. In addition to receiving and processing mining rights applications for their region, the functions of these offices include assisting with small-scale mining operations, mine health and safety inspections, as well as providing support on provincial energy issues. These provincial offices are critical to the effective outreach of the department, and the work they are doing in communities is to be commended.

In terms of SMME development, as a department we have committed ourselves to paying special attention to supporting small and medium enterprises through sustainable interventions. The department is in the process of finalising our SMME strategy. In the past our approach to SMME support was decentralised within the branches of the department. We believe that consolidating the strategy at departmental level will enable us to monitor and improve our performance.

The regulatory framework that is being developed will form the basis of interventions that we will be making in our quest to support small and medium enterprises. Internally, this will cover basic issues, such as improving our turnaround time for the processing of payments that are submitted by the SMMEs. This will ensure that our support initiatives are sustainable and also create synergies with other government departments and institutions.

Our SMME programme will focus on rehabilitation, small-scale mining, jewellery fabrication, other forms of beneficiation and mineral value addition, electricity and liquid fuels and, generally, on ensuring that we procure more and more from small and medium enterprises. Our beneficiation programme will be closely aligned with our small-business support initiatives.

With regard to mine health and safety, a very important function of the Department of the Minerals and Energy is the Mine Health and Safety Inspectorate. They have been working closely with industry and worker unions to reduce the incidence of mine accidents. There have been major improvements over the years, and stakeholders have committed themselves continually to reduce fatalities by at least 20% per annum.

The Mine Health and Safety Inspectorate has also embarked on a national strategy to eliminate silicosis and noise-induced hearing loss or occupational deafness by 2013. These efforts will help reduce the social cost of disease and injuries, particularly to vulnerable communities.

As far as the environment is concerned, our long history of mining, as we all know, has left a legacy of environmental degradation. We have a situation in which there are what we call derelict and ownerless mines. These ownerless and derelict mines now need to be rehabilitated, and the department is to spend R71 million on these activities.

Members would recall that the new mining legislation requires existing mines to make plans and provisions for the rehabilitation of their mines, so that we do not perpetuate the mistakes of the past and are therefore able to protect our environment for future generations.

There are also ongoing problems of mine water, particularly in the Witwatersrand mines. These problems have necessitated the intervention of the department, and R32 million has been allocated to the water-pumping subsidies in this financial year.

Coming to electricity, the issue of the outages in the Western Cape has thrown the electricity capacity of the country into the limelight. Whereas in the past few people knew how many megawatts are needed by the country or what our reserve capacity is, today we find that many people are debating these important issues.

However, a concern from our side is that there is a great deal of misinformation as well as inaccuracies that are being put forward as facts. We recently held a workshop with the chairpersons and CEOs of all the energy institutions, the energy regulator, government departments, research institutions, and associated institutions as well as advisors, to discuss the energy security issue of our country.

We agreed after that workshop that actually there is sufficient capacity in the country at the moment, and there is no need to panic. However, we are fully aware that the reserve margins are very tight and, going forward, new infrastructure and plants will need to be built with speed.

The need to ensure that we have sufficient energy for our present requirements and to meet our accelerated and shared growth initiative target is now foremost on our agenda. As the department responsible for energy policy, we are taking steps to ensure that there is sufficient capacity and that whatever future forecasts we are making are correct.

New power plants are being planned for KwaZulu-Natal and the Eastern Cape. These will be built by the independent power producers. These are in addition to what Eskom is going to demothball, as well as the new power plants that are being built by Eskom.

The one issue that I would like to talk to very strongly is energy efficiency.

Ukongiwa kukagesi. Ukongiwa kukagesi kungenye yezinto ezimqoka ikakhulukazi emva kwalezi zigigaba zase Koeberg lapho kuphehlwa khona ugesi kusetshenziswa inuzi. Njengoba sikhuluma nje miningi imizamo yokonga ugesi eseyenziwe khona lapha eNtshonalanga Kapa. Okusemqoka ukuthi kudingeka sizifundise ukuthi ukonga ugesi, makube yingxenye yempilo yethu nsuku zonke. Mphathisihlalo ngizocela ukuthi qaphu qaphu nje ngokwenziwa izakhamuzi zalapha, ekubambeni iqhaza ekongeni ugesi. Okokuqala abaphathi besifunda sase Ntshonalanga Kapa behlangene noMkhandlu weDolobha laseKapa u Eskom kanye nezakhamuzi basibonisile ukubaluleka kokubambisana. Umkhankaso wokushintsha ama globe asebenzisa ugesi omningi usuqalile ukubonakalisa izithelo. Izigidi ezinhlanu zama globe adla ugesi omncane ziye zafakelwa emizini engaphezu kwezinkulungwane ezingamakhulu amathathu, zifakelwa mahhala.

Lo msebenzi ongaka uye waveza amathuba omsebenzi kubantu abangamakhulu amathathu. Uma sihluleka kulokhu cha sesizoyibika nje njengoba kusho isiZulu. Okwesibili olunye uhlelo olusha lubizwa ngokuthi I Power Alert, mina ke ngilibiza ngokuthi ama robot ngoba lukhombisa imibala ecishe ifane neyama robot. Lolu hlelo lusebenza kanje, umabonakude ukhombisa isimo sikagesi ngokubonisa umbala oluhlaza njengotshani, ophuzi, obomvu kanye nonsundu. Le mibala ke ikhombisa ababukeli lokhu. Oluhlaza usho ukuthi konke kumi ngomumo, ophuzi uthi qaphela, lungela ukucima ezinye izinto ezisebenzisa ugesi. Onsundu wona usho ukuthi izinto ezidla ugesi omningi azicinywe njengamanje, igiza ,izitofu, amaheater kanye namaketela asebenzisa ugesi. Uma sekuvele lo mbala onsundu cima. Uma usubomvu usho ukuthi wena lindela ngoba ugesi wakho uzocinywa nanini.

Olunye uhlelo olubaluleke kakhulu kimi , olokukhuthaza abantu ukuthi basebenzise igas. Mphathisihlalo, ngabe angiwenzanga umsebenzi wami uma nginganitsheli ukuthi umsebenzi wokululeka umphakathi ngokusebenzisa Igas ngendlela ephephile usemningi. Bakithi singakhohlisani Igas iyabiza. Kungakho nje enye yezinto ezimqoka ebesizimisele ukuzilungisa impela inani lentengo yegas. Inani legas lingenye yezinto esivumelene ngayo sinodadewethu uBuyelwa ukuthi uzoqhubeka ayibhekisise.

Ukufakelwa kukagesi. Engizokukhumbula kakhulu ngesikhathi sami njengoNgqongqoshe wezokuMbiwa Phansi naMandla ukulethela abantu bakuleli ukukhanya emizini yabo. Ukungabikho kukagesi emizini eminingi kungenye yezinto ebezingilethela izinyembezi. Injabulo ebengiye ngiyibone ebusweni babantu abaqalayo ukuthola ugesi ibingenza ngibe namahloni ngoba kimi ugesi ungenye yezinto ebengingazihluphi nokuzihlupha ngayo. Sizokhumbula ukuthi uMongameli uthe ngonyaka ka 2012 bonke abantu base Mzansi Afrika kufuneka babe nogesi, igas kanye nezinye izinhlobo zokufudumeza zesimanjemanje. Mphathisihlalo ukuze sikwazi ukufeza lesi sithembiso kudingeka sibe nemali. Njengamanje imali esiyitholayo ebhekelele ugesi ingu 1.4 Billion kodwa ukuze sifezekise lezi zithembiso sidinga u R2.5 wezigidigidi ngaphezulu. Mphathisihlalo ugesi awulethi ukukhanya nje kuphela kodwa usiza namabhizinisi asafufusayo, usiza abantwana besikole bakwazi ukutadisha isikhathi eside kodwa okubaluleke kunakho konke usiza ekuletheni imitholampilo eduze kwalapho sihlala khona. Ngakho-ke ngiyacela bakwethu sizani masenze izimpilo zibe ngcono. (Translation of isiZulu paragraphs follows.)

[Power conservation is one of the important things that we have to look at after the Koeberg mishaps, whereby nuclear power is used to generate electricity. As we speak, many efforts regarding electricity conservation are being made here in the Western Cape. Of importance is that we need to teach ourselves that electricity conservation is part of our daily lives.

Chairperson, I would like briefly to talk about what is done by the people here in taking part in electricity conservation. Firstly, officials in the province of the Western Cape together with the City Council of Cape Town, including Eskom and the people, saw the importance of working together. The campaign of substituting the globes that consume a lot of electricity has started bearing fruit. About 5 million globes which do not use a lot of energy were installed free of charge in more than 300 homes.

This programme created 300 job opportunities. If we also fail this time we will have to admit failure, as the isiZulu put it.

Secondly, there is the other new programme, which is called Power Alert; I personally call this programme “ the robot” because its colours are more or less the same as those of the robots. This programme works in this way, the television set shows the status of power supply in colours: green, amber, red and brown. These colours are meant for the viewers to see the status of power supply. The green colour means that all is well, amber means be careful, be ready to switch off certain electrical appliances. The brown colour means that the things that use a lot of electricity, like geysers, stoves, heaters and electric kettles should be switched off at that very time. When the brown colour appears, switch these off. When the red colour appears, it means be ready for a power cut at any time.

The other programme, which is very important to me, is the one encouraging people to use gas. Chairperson, I would be failing in my duty if I do not tell you that there is still a lot to be done in advising people to use gas wisely. Dear people, we do not have to fool one another, gas is very expensive. It is for this very reason that one of the things that we intend looking at is the price of gas. The price of gas is one of the things that my sister Buyelwa and I have agreed that she would continue looking at very closely. With regard to electricity installations, what I will miss the most about my position as the Minister of Minerals and Energy is bringing light to people’s homes. The unavailability of electricity in many homes is one of the things that moves me to tears. The happiness that I would always see on the faces of first-time power receivers would cause me shame, because before this I did not worry about electricity at all.

We will remember that the President said that by 2012 every person in South Africa should have electricity, gas or any other newly invented heaters. Chairperson, we need to have money so that we can keep all these promises. Right now the allocation for power is R1,4 billion and we need at least R2,5 billion and more.

Chairperson, electricity not only brings light, but also helps emerging businesses. It helps schoolchildren to be able to study for a long time, but most important of all, it helps bring clinics to where we stay. I therefore plead with you: Let us make lives better.]

The people of South Africa have given us a mandate. Let’s try and fulfil that mandate.

Very briefly, I would like to touch on the highlights of some of the examples of the projects that are going to be executed over the next three years.

An amount of R33 million will be spent at the Buffalo City local municipality, under the King Sabata Dalingebo District Municipality. When this project has been completed, 12 000 homes will have access to electricity. In addition, the project at resting substations will not only ensure 18 000 households have access to electricity, but it will ensure access to cleaner and safe water by supplying a local pump station.

In Mpumalanga, again within the Gert Sibande District Municipality, another R17,5 million is to be spent there; R15 million in the North West; and in Enkandla, KwaZulu-Natal, it will be R25 million.

I want to say that on the issue of nuclear energy, I am aware that there is a great deal of concern in this House about nuclear energy. The department and the National Nuclear Regulator oversee the continued safe use of nuclear energy and, of course, we look forward to constructive engagement on this issue.

Members will remember that, last year, we reported on extensive reports and workshops on radioactive waste management policy. I am glad to report that that policy has now been approved by Cabinet and has been published. The policy has created certainty and confidence among the South African public that we do have a plan for nuclear waste management.

This year will see us realising the findings of the Moerane Task Team, which, as we all know, was set up to look at the shortages of fuel in December.

As this is my maiden and my final budget debate in this House, I would like first to congratulate the Deputy Minister, who has now been elevated to the position of Minister, a position that I think is very well deserved. We congratulate her. [Applause.]

I would like to thank our Director-General and the senior management. I have no doubt, DG, that you are going to miss both the Deputy Minister and me in the department. I would like to thank members of the Select Committee on Energy with whom I believe we worked very well together during my short stint as Minister of Minerals and Energy. Thank you. [Applause.]

The HOUSE CHAIRPERSON (Ms M N Oliphant): Thank you, hon Minister. Hon Deputy Minister, I know that this is your last day as Deputy Minister, but you are welcome here in the NCOP.

Ms N D NTWANAMBI: People always know what I am going to say. Chairperson, hon Deputy Minister and Minister, I first want to congratulate you on your redeployment and wish both of you well with your new areas of work.

We meet at the end of energy month, but maybe it shouldn’t be for a month only; it should be a yearly programme to raise people’s awareness.

In the past, as the Minister has said, we did not consider that our committee should debate issues related to mining and energy. What is clear though is that these two areas affect both provincial and local government. An example of this is the power outages mentioned by the Minister that happened here in the whole of the Western Cape. This affected many municipalities. Also, the issue of mining contributes to the provincial economy and also assists the local government.

We also want to thank Eskom, as somebody coming from Cape Town now, for the energy-saving lights that have been distributed throughout the area. But I must just say Minister, before you leave, that I didn’t get my geyser blanket. I still have to get one.

Our committee is concerned about the occupation, or call it a sit-in, that took place in the past weeks. An old woman died, not knowing whether she was entitled to the claims or not. And also, we would like to know the role played by Teba, particularly these days. We also want to congratulate Sasol for having raised R24 million for the victims of mine deaths and injuries.

We also know that R120 million has been allocated for the rehabilitation of ownerless and derelict mines. We know that the priorities are the cleaning- up of abandoned and ownerless asbestos mines identified and the other identified sites, which are mainly in the Northern Cape and Limpopo. So, the cleaning-up of these ownerless mines is taking place in various provinces, and this creates jobs and builds capacity for the people of our land, particularly the young and women.

However, the concern lies with the neglect of those who have been injured in mines. Programmes should be developed to ensure that they are able to sustain themselves and be productive members of society.

Njengomntu okhulele ezilalini ke Mphathiswa, andiyazi ke ukuba ilali yintoni ngesiZulu, kodwa uSekela Mphathiswa uyaku kunceda apho ecaleni kwakho akutolikele. Ndiyazi ukuba kudala umntu oya ejoyinini wayewufumana kwaTeba umsebenzi ze imali zakhe azifumane xa sele ebuyile ke apho emgodini. Yiyo le nto ndibuza lo mbuzo.Enye into endiyaziyo kukuba umntu ebebuya exwaye igumbagumba enkula apha emagxeni engenayo enye into. Iseyingxaki ke nanamhlanje leyo ebantwini bethu. Kukho izinto ezibizwa ngokuba ziindunduma siyaqaphela ukuba kusasetyenzwa kuzo.

Ingaba isiwe iso na loo nto okanye isebe eli liyanxibelelana nelezendalo malunga nothuli oludaleke phaya? Iyachulumancisa into yokubona ukuba ukuze ube nomnqweno wokuba ngumrhwebi ayinamsebenzi into yokuba ukhanya kangakanani kwezi ntsuku zethu. Uqabane uSteve Tshwete ongasekhoyo, - wanga umoya wakhe ungalala ngoxolo -wayethanda ukuthi xa encoma, “noomofu bayakhonya”. (Translation of isiXhosa paragraphs follows.)

[As a person who grew up in the rural areas, Minister, I don’t know the word ”ilali” in isiZulu, but the Deputy Minister next to you will interpret that for you. I know that a person who wanted to work in the mines would do that through Teba and he would get his salary when he came back from the mines. My question is based exactly on that. What I also know is that a person would come back carrying just a very large portable tape recorder. That is still a problem among our people. I also notice that work is still in progress in what we call mine dumps.

That is why I’m asking this question. Secondly, what I know is that a person would come back just carrying a very large portable tape recorder. That is still a problem among our people even today. There are what we call mine dumps, but we can see that work is still in progress there.

Has this been considered or is this department co-ordinating with the Department of Environment and Tourism about the dust that accumulates there? It is exciting to note that one’s skin colour plays no part in today’s trade links. Comrade Steve Tshwete - may his soul rest in peace - used to pay compliments by saying: Noomofu bayakhonya. [Even the previously marginalised can empower themselves.]]

Eyona nto isebuhlungu Mphathiswa, nekusafuneka kufundiswe kabanzi ngayo ngumba kagawulayo. Sithetha ngabantu abangamasoka ixesha elininzi apha. Kufuneka ibe ngathi iyaqina futhi loo mfundiso ngoba indlela abasweleka ngayo abasebenzi basemgodini ixhomisa amehlo. Manditsho kwakhona ukuba iyothusa nento yokuba uve inkokheli isithi abantu xa benxanelwe uthando abafuni zidyasi, yaye abanakho ukuzibamba. (Translation of isiXhosa paragraph follows.)

[Minister, I am happy with the new conversion of hostels to family units. It is critical that the scourge of HIV/Aids on the mines is addressed. We need to look at that.

People need to be more educated about HIV/Aids. Here we are talking about people who have led single lives for a long time. That education needs to be intensified because the high volumes of deaths on the mines are frightening. I would also like to mention that it comes as a surprise to hear a leader saying that partners who are anxious to make love don’t want to use a condom and they cannot control themselves.]

That’s a very irresponsible statement from a leader.

The demographics of ownership and the contribution of minerals to others remain a challenge. This is so because of the “rent-a-black” programme. Some people do not even know that they are as wealthy as the paperwork says. They are given papers to sign, unaware that they are shareholders and they are not even told about that.

An example of this would be the discovery of a certain mineral in the Karoo/Beaufort West area. The owners of that farm are being bought out at R20 million. Those buyers will make 100x20 profit.

Another thing is that people who claim their land and win are not trained on how to mine or work. I think we need to make sure that each department speaks to the others on these issues. As I always hear departments saying, they have road shows. I think it is going to be very important that departments involved in such activities speak together and make sure that they go out together.

Iyabaluleka into yokuba amasebe karhulumente anxibelelane. Kwakhona apha eNtshona Koloni kukho umba wokombiwa kwesanti, apho ungaboni namnye kwabethu abantu. Sicela wena Mphathiswa ukuba ukhe uphandisise ukuba ingaba akutyiswa abahluthiyo na. Kulapho nalo rent a black uza kumfumana khona. Mandithi xa ndigqibezela Mphathiswa kunye nesebe, sisafuna uphando olunzulu lokuba iza kuphumelela na le nto yokutsalwa kwamandla emoyeni “wind energy”, namandla avela engqoloweni “wheat energy”, nokutsala emboneni zonke ezo zinto zinje ngezo.

Kaloku ndaphuma emagaleni. Umntu ozaziyo eza ncwadi ze-Steward Xhosa readers, ngoko ke zange ndide ndifike phaya kwamanye amagama amakhulu. Uya kunceda ke Mphathiswa, nokuba akusekho kweli phondo ubone ukuba oza kungena esikhundleni sakho uyasincedisa kule nto. Sisele sanela ngexa lokudibana kwethu silisebe, kwaye sazikhankanya neendawo esinganelisekanga zizo. Ngoku ndima ndixhasa olu Hlahlo-lwabiwo-mali egameni likaKhongolozi. Enkosi. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)

[Co-operation among governmen departments is essential. Sand mining occurs in the Western Cape but you cannot even find a single black person. We appeal to you, Minister, to investigate whether they are benefiting those who already have full stomachs. This is where you will find the “rent-a- black”. In conclusion, I would like the Minister together with the department, to conduct thorough research into whether there will be any success in generating energy through wind energy, wheat energy, maize energy and things like that.

I obtained my education at disadvantaged schools. I know those books called Steward Xhosa readers; and therefore, I did not reach those standards of learning. It would be good of you, Minister, even if you are no longer in this province, to ensure that your successor helps us in this regard. We have highlighted some issues of concern. I support the Budget Vote on behalf of the ANC. Thank you. [Applause.]]

Mrs E S MABE: Hon Chairperson, hon Minister and Deputy Minister, special delegates and Members of Parliament, ladies and gentlemen, let me also take this opportunity to congratulate both of you, Minister and Deputy Minister, on your new appointments and to wish you well as you execute your new mandates.

In 1955 the Freedom Charter was drawn up at the Congress of the People in Soweto. The charter enunciated the principles of the struggle, binding the movement to a culture of human rights and nonracialism over the following decades. The Freedom Charter was elevated to an important symbol of the freedom struggle. The Freedom Charter articulated the need for a mixed economy, with the key sectors in mining and banking and with the monopolised industries transferred to ownership by the people as a whole.

When the ANC National General Council met in Tshwane on 29 June to 3 July, the general council of this glorious movement proceeded to say:

The ANC’s vision has always been one of a prosperous, equitable, stable and democratic society. In the economy, our vision has been one of decent work and living standards for all, in the context of qualitatively improved equity in ownership, management skills and access to opportunities … It is imperative that we mobilise the ANC’s core constituencies - the poor, workers, women, youth and black business - around our economic strategies.

Therefore my speech today will focus on the following: women in minerals and BEE, Eskom and the outages, the building of new power stations, the rehabilitation of abandoned mines and the proposal of shifting from paraffin.

The only way for us to make sure that we see progress is by continually referring back, looking at the present and thereby observing progress, and anticipating the future, ensuring that the vision I alluded to earlier is one that is implementable and, of course, noting the challenges with a view to realising our noble objectives as the ANC-led government.

On the Eskom outages, from the start the ANC-led government emphasised meeting basic needs through programmes for socioeconomic development such as the provision of piped water and housing; and electricity was no exception. The impact of these programmes is seen in the increased proportion of South Africans who now have access to these basic services, and for this we commend the department for a job well done.

However, the recent electricity outages in the Western Cape and Johannesburg show that the department needs to increase its speed in ensuring that there is adequate provision of energy supply, not only in the Western Cape and Gauteng, but also in the country at large.

We also note that the Energy Efficient Strategy, which was approved in March 2005, set a national target for energy efficiency improvement of 12% by 2015, and that in his state of the nation address in 2004, the President announced the intention to provide electricity to the majority of this country by 2012, which is six years from now.

We also hope that the introduction of the electricity Bill will provide regulatory clarity regarding the responsibilities of the Minister of Minerals and Energy relative to the regulator and Eskom, as it will also introduce penalties in the event of breach of the licensed norms and a centralised plan for electricity capacity expansion so that the struggle in terms of energy supply will be a thing of the past.

We also appeal to our communities, businesspeople and consumers of energy to join hands with the department by becoming more energy efficient and to use alternative energy forms to reduce consumption, particularly at peak times.

Regarding the rehabilitation of abandoned mines, the rehabilitation programme for 2005-06 included the following: R43 million has been allocated to asbestos rehabilitation, which continues to be a priority as asbestos is a serious health hazard. In the North West, the Western Cape and Mpumalanga the CGS has identified about 490 abandoned shafts which pose a severe safety risk to nearby communities, and some R18 million has been allocated for the rehabilitation of abandoned uranium mines in the Karoo and the Free State.

However, we also noted that there was R104 million worth of bids which were expected to have been published as part of the rehabilitation programme in 2005-06. We are still looking forward to these as they will incorporate dedicated enterprise development and they certainly will create jobs.

On the proposal of shifting from paraffin, the use of paraffin by our low- income households is more widespread in rural and urban areas. Paraffin has, however, associated health and safety problems. Therefore we urge the department to look at this issue closely as it has a serious impact on the physical, social and economic standing of our people.

Therefore this issue still needs robust discussions amongst stakeholders in order to find an effective solution. However, we appreciate, in line with the proposal of phasing out paraffin, that the department has worked out a plan to phase in LPG gas, which is a better burning fuel for cooking and heating as it generates less smoke, dust and choking fumes.

This move shows how caring and mindful our ANC-led government is in its commitment to continuing to provide a cleaner, healthier and safer energy source to improve the quality of life for the masses of our people.

On women in minerals and BEE - in terms of what we agreed to during the NGC in Tshwane in that in the economy our vision as the ANC has been one of decent work and living standards for all in the context of qualitatively improved equity in ownership, management skills and access to opportunities

• we continue to see together with the department that the role of women in the minerals and energy sector needs to receive greater prominence.

Therefore we commend the department for initiatives taken through bodies such as the SA Women in Mining Association, Women in Oil and Energy SA and Women in Nuclear SA to support the entry of women into this industry. We are looking forward to seeing these organisations accessing deals that will make sure that women are economically empowered.

Our country contains a variety of mineral deposits that are conducive to small-scale mining activities, and programmes have been developed to this effect. Of prime importance to these programmes is the empowerment of women. In terms of the development of small-scale mining in South Africa, the SA Small-Scale Mining Chamber was launched on July 2005 in Kimberley in the Northern Cape.

According to estimations, about 1 000 jobs can be created out of every seven to 10 sustainable small-scale mining projects - if nurtured they can assist in job creation and skills development. These projects employ no fewer than 740 people, and about 593 women in particular.

The department encourages access to funding for small-scale mining through support for appropriate and target institutions, and these are the Industrial Development Corporation of SA Ltd, the New Africa Mining Fund, Khula Enterprise Finance Ltd and the Development Bank of Southern Africa. In conclusion, the Minerals and Energy committee supports the Budget Vote. I thank you. [Applause.]

Ms S S CHEN: Hon Chairperson, hon Minister, our future hon Minister, hon members and distinguished guests, it is well known that South Africa is a country rich in minerals and resources. These resources are no doubt a great asset to our country and need our protection and management. It is vital that we utilise our resources in the most efficient and effective manner possible in order to provide for generations to come.

There is a global rush to gain access to nature, minerals and resources as each nation becomes aware of the needs and requirements of their country. South Africa is fortunate to be one of the countries that enjoys an abundance of mineral and energy resources. Although they are not limited these resources need to be managed wisely.

South Africa has always been an exporter of raw material and an importer of processed products. This is not an efficient way to manage our natural resources. We need to improve our skills and training as well as our available technology so that we are able to manufacture and produce goods, thus allowing our resources to directly benefit our people. This is and will continue to be a challenging task.

We have heard the Minister of the Minerals and Energy quoting a lack of funds as the main contributing factor for not achieving various goals and targets. Although funding is important, it cannot be the only factor to reaching objectives. Several concerns have been raised in the various meetings regarding the management of minerals and energy, and some will be discussed below to illustrate my point.

Firstly, the access and security of electricity has been a major focus lately. The main explanation given for the nonattainment of connecting 500 000 households to electricity sources has been that of underfunding. However, the 89 000 households that benefit from the underfunded budget form only around 18% of the target of 500 000 and yet the budget allocated was 56% of the required amount - meaning that the budget should have allowed for the connection of 280 000 households. Clearly, underfunding was not the only problem for the poor connection rate.

Secondly, a separate concern from funding is a lack of skills available to fill the vacancies in the department. Staff retention and vacancies remained a challenge due to the knowledge-intensive requirement of positions. Credit must however be given to the department for the effort in the implementation of various bursary and internship training programmes to increase and improve their current skills base. The effective appointment of the staff with appropriate knowledge and skills will greatly contribute to the management of our minerals and energy issues such as the efficient establishment of Regional Electricity Distributors.

Within the overall objective of prolonging the availability of our natural resources for future generations, the welfare of our people must also be considered. Attention must be given to providing access to energy and ensuring a secure energy supply to all South Africans. The department’s efforts to phase out paraffin usage and introduce safer and more environment-friendly energy sources must be encouraged.

Another important concern is the safety and health standards of our mining industry. Besides the fact that our current fatality numbers are not in line with international standards, still we have an ethical responsibility to protect our mineworkers. Other key issues of focus include service delivery, supporting SMME strategy and commitment towards continuous capacity-building in the minerals and energy sectors. There are additional concerns that my colleagues in the National Assembly have already raised. I am sure our Minister is fully aware of these issues. Therefore, I will not discuss them any further.

Although funding is a necessary means to many ends, we need to take appropriate responsibility and accountability for our actions. Embarrassing occurrences such as the Oil-gate issue must not be permitted to recur as this brings disrepute on the department as well as on our government. Our country has many priorities and limited funding is available to be appropriate to meet all demands. Therefore, even though the budget allocated to the Department of Minerals and Energy may not be ideal for the tasks that face us, we nevertheless have to take ownership for what can be achieved. We hope that with the leadership of our future Minister of Minerals and Energy, our country will be able to overcome the challenges ahead. [Applause.]

Ms A N T MCHUNU: Chairperson, hon Minister, the one who has been the Deputy Minister, hon members in this House, an admission has to be made that the implications of this department’s service delivery have been taken very lightly. The closure of mines boomeranged with a high rate of unemployment and affected particularly unskilled labour. Similarly, electricity was taken for granted until outages occurred, affecting all levels of communities particularly in Cape Town and Johannesburg.

Minerals are God-given gifts to our country, and if properly managed they create jobs, contribute to the economic growth and alleviate poverty. Apart from the world-renowned minerals like gold, iron, manganese, platinum, zinc, vanadium and coal, simple substances like lime, ochre, anthills and sand are mined by the peasantry in a crude way.

I am quite happy that our Minister has mentioned that training has to be done for emerging miners. The mining charter has to be implemented or monitored in order to promote involvement of those emerging miners who are historically disadvantaged South Africans. Training of this category of people is needed and it would help to know how much has been allocated for this function.

The health and safety of miners has to be taken into consideration. The work done in the mines necessitates a doubly healthy diet, good exercise and healthy family relations to avoid stress and strained relations. For this, R117,2 million has been allocated and an additional amount of R8,674 million. To me, this is not enough, in view of claims made following accidents. Families of accident victims should be considered as dependants of the victims too.

Mining in traditional areas calls for the restitution of land that was taken for mining, particularly in rural areas. Consultations have to take place. Communities should also be given a share of not less than 26% in the mining enterprise. Women and youth involved in mining should have ongoing training. Postmined areas should be used for income-generating projects like forestry, housing or flats. Areas that are along the coast should be used for promotion of hospitality and tourism.

Electricity capacity constraints experienced in some cities, as I have mentioned, mean that electricity has to be saved. Our hon Minister has also mentioned that. The unprecedented blackouts that occurred in the Western Cape indicated that we have to build on what we have and not adopt the culture of throwing away what is considered to be obsolete.

About 93,1% of our electricity is generated from coal; 5,5% comes from nuclear power, whereas 1,3% comes from hydropower. This information is from the South African Survey 2004-05 which was conducted by the South African Institute of Race Relations. The garden projects that use electricity for irrigation experience problems of paying for electricity. The use of windmills instead of electricity for irrigation can ensure economic growth. Institutions that are mainly used during the day should rather be assisted with solar systems in order to save on electricity.

Biofuels, which are lately referred to as green heat, are taking great strides in that a whole range of appliances are being made that use gel fluid. Paraffin, coal and wood are also being used to save electricity. In rural communities, people have to be encouraged to have woodlots for firewood and to care for the environment.

A project close to this approach can be seen at Mthunzini, that is the Twin Streams Indigenous Nursery, in KwaZulu-Natal. Whilst people get wood for fire, the trees prevent soil erosion, the water table is maintained and the presence of trees prevents the widening of the hole in the ozone layer. People have to be taught about these cycles and that means a good budget. The IFP supports the budget, but more money is needed because a lot of training needs to be done. I thank you. [Applause.]

The DEPUTY MINISTER OF MINERALS AND ENERGY: Molweni! [I greet you!]

HON MEMBERS: Molo! [We greet you!]

The DEPUTY MINISTER OF MINERALS AND ENERGY: Chairperson, hon members, my colleagues from the industry in the gallery, ladies and gentlemen …

Uthe uMphathiswa wam mandithi: gooi gooi okanye gram gram kancinci. [My Minister said I must summarise or highlight here and there.]

As I present my first and last Budget Vote speech as the Deputy Minister of Minerals and Energy to this House, I would like to acknowledge the support of all stakeholders that I have had the privilege and opportunity to work with. The last two years were a very special time for me.

Kodwa ke ndivile qabane uMani ukuba kukho abojayo, bebhiyoza njengokuba sihamba nje noqabane uLindiwe. Kambe ze bose, basimeme nathi apho emosweni ngoba kaloku baseza kuza kuthi. Le migodi bayomba emhlabeni, ngoko baza kuwaswela amanzi phaya emigodini. [Kwahlekwa.] Ndifuna ukongeza ndithi, asibashiyi bodwa. Sele ndivela eziplasini, ngoku ndithetha nesibhulu. Sibashiya ne-skop-se-doner DG. [Kwahlekwa.] Xa usithi nantsi i-target uthi yena kubo, xa usithi skop naye uthi, skop. Xa usithi left uthi, left ukanti naxa usithi right uthi, right. Abaselanga bodwa, abazi kuba nesithukuthezi, tu ke. Ndiza kuqala ke nge-mine health and safety [impilo nokhuseleko emigodini]. (Translation of isiXhosa paragraph follows.)

[However, I have heard, Comrade Mani, that there are those who are rejoicing and celebrating my departure from Comrade Lindiwe. May they do so and invite us to their celebrations, because they will come back to us. They will need water as they dig minerals from the soil. [Laughter.] I want to add to this by saying that we are not going to leave them alone – I even went to the farms and I can even speak Afrikaans – therefore, we are leaving them in the hands of a director-general who is a sharpshooter. [Laughter.] If you say: Here is the target, he says “go for it”. If you say “skop”, he also says, “skop”. When you say, “left” he also says “left” and when you say “right”, he says “right”. They are not alone; and they will not be bored at all. Now, let me start with the issue of mine health and safety.]

The mining industry’s safety performance continues to improve. In the 10 years of the existence of the Mine Health and Safety Act, we are starting to see the positive impact of the implementation of the Act. The department has recorded a significant decrease in terms of fatalities in all mines. In 1995, the fatality rate stood at 533 with injuries standing at 7 717. I am pleased to announce that by the end of 2005, our fatality rate had decreased to 2002 and the injury rate to 3 961.

The mine health and safety inspectorate has also embarked on a national strategy to eliminate silicoses and noise-induced hearing loss or occupational deafness by 2013. These efforts will help reduce the social course of diseases and injuries particularly in vulnerable communities. Overall, the 2005 rate was the lowest recorded in the history of South African mining. Everyone concerned would agree with me that there is room for improvement; one death is one too many. A lot more work needs to be done for us to reach parity with international rates by 2013 as agreed at the mine health and safety summit held in 2003.

Small-scale mining is one of the vehicles for stimulating rural economies and job creation for poverty alleviation. My department has committed itself to seeing to it that the small-scale mining sector receives the necessary attention in order to become sustainable. One of the major challenges facing my department in the area of small-scale mining is that of illegal mining operations and the dangers associated with them. A number of small–scale mining projects have been assisted either technically to enable them to comply with the mining legislation, or financially to help them get off the ground. Last year, we established a small-scale mining board with the mandate to find and implement solutions to overcome the identified limitations within the small-scale mining sector. This board will give priority to good quality projects that will serve the poor as well as contribute towards economic development.

We also assisted the small-scale mining community with the launch of the South African Small-Scale Mining Chamber. Its mandate is to create one representative for the small-scale mine operators under one umbrella body that will represent their interests in various forums where representation is required.

Since the promulgation of the Mineral and Petroleum Resources Development Act in 2002, we have received over 7 500 applications for all types of rights. This is unprecedented in the history of the South African minerals and mining sector. Over 80% of these applications are for new prospecting rights. I am informed that under the old dispensation the department used to receive around 400 applications per year. This means that since the promulgation of the Act, applications have increased ten-fold. This is a sign that the mining industry is growing and that there are a lot of investors coming and interested in the country, contrary to the belief of the prophets of doom who were fighting against transformation and whom we had to pull, kicking and screaming, to come to the table.

We have increased our capacity with the mineral regulation branch to cope with the workload, improved on our turnaround time and continued to assist first-time entrants in the industry. More attention will be given to ensuring the quality and broad-based nature of the deal supporting BEEs within these applications.

A major thrust of the Minerals and Petroleum Resources Development Act, is transformation. Since the promulgation of the Act, we have read and heard about the biggest ever and the best ever BEE deals. Andizi kubiza magama abantu. [I will not mention names.]

Notwithstanding these big deals, we still have a long way to go. These two years have taught us to be aware of the optics of transformation. This a concept where transactions are structured in such a way that they seem to be BEE compliant whilst in reality they are not. This is why we have resolved to look at each and every deal microscopically.

The direct beneficiaries of the empowerment policies of government are also becoming a problem. We have experienced instances where BEEs are granted licences and the next thing we hear is that they have sold their rights to the highest bidder. This is sad and unacceptable. We did not pass this law to create opportunistic licence traders. We want to have the historically disadvantaged South African companies operating in the mining sector and we are not going to allow the beneficiaries of government policy to undermine our policies.

As we commemorate the 50 fighting years of the women’s march, it is actually sad that our women, especially those in the mining areas where mining operations are located, continue to be ignored and abused. We will be working on changing this in the industry. We are going to facilitate the creation of women-led and women-controlled operating companies. We want companies that want to be operationally involved, not to be mere shareholders or participants in management committees, but companies that want to dirty their hands in the mines.

We have also experienced a lot of fronting and delusions. Last year in the department, we conducted a high level audit to establish what happened to women companies that were granted contracts or tenders within the department. I must indicate to members in the House that the results were shocking. The SMMEs that were granted contracts have disappeared and we could not trace any of them, which is both sad and unfortunate.

A week before last, at the department’s presentation of its strategic plan to the portfolio committee, an appeal was made, which I am now repeating to you hon members, that public representatives must join in the fight against fronting. The sad reality about fronting is the resultant effects of compromising for the cause of personal and self-enrichment. I would also like to make a special plea to the women out there not to allow themselves to be used as fronts.

Ndifuna ukuthi ngaphezulu, asinga bamhlophe bodwa kodwa bakhona nootata abamnyama abanezisu ezikhulu, abafika phaya batyikitye, behamba noomama bebaqhuba ngaphambili okweenkomo, bathi bakugqiba ukutykitya aba mama babangqinibele ngaphandle kwezi nkampani. Nabo ke torho sibajongile. Ndithi, izisu zabo zibenkulu kakhulu kuna kuqala ke ngoku. (Translation of isiXhosa paragraph follows.)

[I want to add to that by saying that the white men are not alone in this fronting, there are also black men who are pursuing personal interests and self-enrichment, who go there to sign agreements, accompanied by women, putting them forward as if they are a herd of cattle. After completing the signing process, they push these women away from the companies. We are keeping a close watch on them. I am saying they are filling their stomachs more than they did before.]

In striving to achieve the objectives of the Accelerated and Shared Growth Initiative of South Africa, the department will forge ahead with its plans to ensure that the mineral resources that are produced in this country are beneficiated locally.

Le nto intle endiyinxibileyo apha yenziwe ngoomama nootata baseNtshona yeAfrika. Nathi sinegolide apha eMzantsi Afrika. Akukho mfuneko yokuba le golide siyihambise ngentengo ephantsi. Masiyisebenzi boomama, sizenzele into esiyifunayo, sisebenzisa ubugcisa nobuchule bethu baseAfrica, ukuze sikwazi ukuvelisa ezi zinto ukwenzela ukuba nathi sizithengisele iMelika, ne-Switzerland neYurophu, ukuze bayeke ukuza apha no-American Swiss baze kusithengisela igolide yethu sebelonyusa kakhulu kuna kuqala ixabiso layo. (Translation of isiXhosa paragraph follows.)

[Men and women of western Africa have designed this beautiful dress that I am wearing. Even here in South Africa we have gold at our disposal. There is no need for us to export this gold at a lower price. As women we must use it and do what pleases us, using the art and technology of Africa, in order to process these things and sell them to countries like America, Switzerland and Europe, so that they will stop coming up with jewellery stores like American Swiss, who sell us our very own gold at a higher price than it was before.]

Local and international players in the diamond cutting and polishing industry as well as players in the gold and platinum metals processing industry have shown serious interest in investing in South Africa following the changes that we have put in place …

Iinguqu enizaziyo ke, neMithetho esiyipasisileyo enje ngoMthetho Olungisiweyo weZedayimane, Diamond Amendment Act, noMthetho Oyilwayo weZimbiwa, Precious Metals Bill. [Those changes you already know, and the laws that have been passed, like the Diamonds Amendment Act, and the Precious Metals Bill.]

The department in conjunction with the local and provincial governments is continuing with the jewellery manufacturing projects in Kimberly and at Johannesburg International Airport, which have already been introduced to Parliament. These will create a platform for the influx of investment, which will bring with it new skills, technologies and funding mechanisms.

All investors that have held discussions with the department have indicated their interest and commitment to transfer the knowledge and skills based on their extensive expertise in this field and to come to South Africa and build their factories and industries here.

In November 2005, we trained about five young South Africans in Belgium for diamond jewellery management. We are planning to continue with this programme; we have an agreement with the Belgian government that we will continue to send South Africans every year to this programme. We also have, in the department, continued to work on skills development. We have the Gabane project, which is operating within Mintech and is training rural women in jewellery manufacturing. We are also continuing with this project in conjunction with our Seta, the mining qualification authority.

Last year we signed an agreement with a Chinese company where they are going to train our young girls in diamond and jewellery manufacturing. Already, we have sent 15 girls who started in February and will be coming back in July after six months. We are supposed to send another batch of girls in the next term and there is a contract of five years. Every year we send two groups for training in China. That will help us to be able to produce our own jewellery and beneficiate and add value to our minerals, here, in South Africa. [Applause.]

We also have Petro SA that has been struggling to ensure that we get access to oil and gas in Africa and other parts of the world. They are promising and they are doing very well now. As the members have said we have, as part of our work, established Sawusa and Woesa and other women formations. I wish to take this opportunity to call on Sawima and Woesa to get their houses in order. We hope that they will be able to address the concerns around their accessibility in rural areas and create opportunities for other disadvantaged women. We also salute Winsa, which is concentrating on nuclear energy and women and ensuring that there is representivity for women in the nuclear centre and awareness and education for our young girls to come into this important industry.

I would like to thank the Minister for her dedication and commitment over the last few months that she has been with us in the department. I have learnt a great deal from her and I wish her all the best in her new portfolio. A special thank you to the Director-General, Sandile Nogxina, for being the pillar of strength at the centre of all the many changes in the leadership of the department. Thank you to the staff of the Department of Minerals and Energy for your support during my stay in the department.

In conclusion, I would like to inform you that I have already had a good meeting with the farmers on Monday. [Laughter.] They have invited me to their next hunting expedition at the end of June. Indeed, they love a woman who can shoot straight and get her targets. [Laughter.] As a rural and a country girl, I expect my Director-General for Land Affairs to make land available and my Director-General for Agriculture to bring the seeds and tractors, including seeds for energy crops to produce biofuels so that we can go out there in the rural areas and begin to develop our country. I say to the directors-general, ``You were warned that I shoot from the hip and this is my first shot and a very good one.’’ [Laughter.]

I am sure the new Minister of Water Affairs will make water available while the new Minister of Minerals and Energy will provide energy for irrigation and dairy equipment so that we can go back and develop agriculture in the rural areas.

Masiphumeni ematyotyombeni aseKapa naseGoli mawethu! Siyagodola apha, kwaye siyalamba, ngoba akukho misebenzi. Masigodukeni siye kulima emakhaya, umhlaba usekhona, nemvula inile. Masiyekeni ukutshipha eRhawutini naseKapa. Ndiyabulela. [Kwaqhwatywa.] (Translation of isiXhosa paragraph follows.)

[People, let us evacuate the shacks of Cape Town and those in Johannesburg. We are freezing and living in hunger, because there are no jobs. Let us go back and cultivate the land in our places of origin. We have soil to work, since it has been raining. Let us abandon our long stay in Cape Town and Johannesburg. I thank you. [Applause.]]

Mme M P THEMBA: Modulasetilo yo o tlotlegang, Tona e e tlotlegang, Motlatsa Tona yo o tlotlegang, baemedi ba ba tlotlegang le maloko a kokoano peomolao, borre le bomme, Ke bona re tswanetse go fetola diane tsa bogologolo. Fa re gola gone gotwe: ”Ya etelelwa ke e tshegadi kwa pele ya wela ka lengope.” Re tshwanetse re lebelele jaanong re di busetse kwa morago gore jaanong diane tse tsa bogologolo re bone gore re di baya jang gonne fa e tshegadi e eteletse kwa pele, re namela thaba re fitlhelela ka kwa ga yona.

Monongwaga ditirelo tsa diminirala le maatla di tla fitlhelela batho ba rona mo maphateng otlhe. Matshwititshwiti a batho a tla bona ditšhono segolo jang bomme le bašwa. O ke motheo wa kgololosego e re neng re e lwela re e tlhabanela re le ba mokgatlo wa African National Congress mo nakong e e fetileng. Ke ka moo Tautona Rre Thabo Mbeki a neng a tlhagisa le go totobatsa dikgwetlo tse di lebaganeng puso, re akaretsa tlhaelo ya bokgoni, botlhoka tiro le bohumanegi. (Translation of Setswana paragraphs follows.)

[Hon Chairperson, hon Minister, hon Deputy Minister, hon representatives and members of the House, ladies and gentlemen. I think we have to change the old proverbs. When we grew up, it was said, “When it is led by a woman, it encounters danger”. We have to look at these old proverbs and change them because we climb the mountain and reach the other side when a woman leads.

This year, the minerals and energy services have reached our people in all sectors. Multitudes of people will have opportunities, especially women and the youth. This is the foundation of the democracy that we, the African National Congress, fought for in the past. That is why President Thabo Mbeki has outlined and emphasised the challenges that are facing government, including the lack of skills, unemployment and poverty.]

During their presentation of the Budget Vote to the select committee, the Department of Minerals and Energy assured the committee that gender issues in that department are at the top of their agenda. They even assured us that they have a fully fledged functioning gender focal desk, but I call it a focal point. On Thursday and Friday Sawima – South African Women in Mining Association will be holding their annual general meeting.

Ngiyetsemba, Ndvuna, kutsi iSawima, South African Women in Mining Association, kulekhomfa yabo yangaLesine bakuvile kutsi utsini, batawuvuma kutsi batawukhona kuya nasemaphandleni kuze kutsi Litiko nalifika kitsi sive kahle kutsi ngempela … [I trust, Minister, that Sawima at their conference on Thursday did hear and have understood what you have said and that they will agree to visit the rural areas so that when the department does come to us, we will be able to get some clarity …]

Mokgolokwane o utlwagetse kgakala! [Ululations are heard from afar.] In realigning and integrating the energy sector, the National Energy Regulator Act, Nersa, has been created in line with the National Energy Regulator Act of 2004. Nersa is the national energy regulator for South Africa and its mandate is drawn from the following legislation: National Electricity Act of 1987, the Regulator Act of 2001 and the Petroleum Pipelines Act of 2003.

Central to Nersa’s mandate will be to take necessary actions in anticipation and in response to changing circumstances in the energy industry. As part of its responsibilities, Nersa performs these regulatory functions, processes licences, sets tariffs, sets conditions of supply and standards, investigates complaints and mediates or arbitrates in disputes. It also promotes BEE and competition in the energy industry. Necsa or the National Energy Co-operation for South Africa has as its mandate to develop and use nuclear technology as part of the broader system of innovation and to serve government’s nuclear institutional obligations. Its main units includes nuclear technology, nuclear services, facilities management, nuclear technology products and high technology products.

Siyeva kutsi labomake lababili laba basebenta ngethekniki. [We understand therefore that these two ladies are using a specific technique.]

It should be noted that Safari 1, that is South African Fundamental Atomic Research Installation 1, celebrated 30 years of safe and successful operation in March 2005. It plays an important role in research and the production of radioisotopes for medical applications. About 60 000 patients from our country and the world at large benefit annually from the medicinal use of isotopes originating from Safari 1. Safari 1 has provided products to customers in more than 50 countries. As part of its programme, Necsa has set the following targets: to upgrade the Pelindaba and Vaalputs security systems; improve the health, safety and environmental management system; and manufacture low-enriched uranium prototype fuel for the conversion of the Safari reactor.

The minerals and energy sector would also play an important role in the achievement of the objectives of Asgisa, particularly through the metals and metallurgy sectors. This is linked to the progress that government made last year in the areas of beneficiation and passage of various enabling legislation.

In the 2006-07 financial year, the department has outlined seven programmes in which it will deliver on the targets set out in the state of the nation address and its strategic plan.

The department’s guiding fundamentals are premised in the following strategic objectives: active contribution to sustainable development, bridging the gap between the first and second economy, implementing relevant regulatory and promotional policies and review of structures and capacity so as to efficiently deliver on its mandate.

Key to the responsibility of the administration programme in order to achieve the above is to manage the department and provide administrative support, including policy formulation. The Administration Programme is centrally located and very critical to the success of other programmes of the department. In carrying out its mandate, the department and the Ministry require proper management of all programmes and the development and implementation of policies.

Fundamental to our support of the Budget Vote are good administrative practices accompanied by principles of Batho Pele. At the core of our governance is the proclamation contained in the Freedom Charter, as we celebrate this year, the 50th anniversary of the women’s march, the people shall govern.

The mechanisms such as Asgisa and Joint Initiative for Priority Skills Acquisition, Jipsa, have been put in place to address the challenges faced by our fledging democracy. The department is strategically positioned to ensure that the objectives of Asgisa aimed at halving poverty, job creation and skills development are attained. Primary to this will be the nurturing of the SMMEs through training and development.

In conclusion, in order to succeed in delivering services to the masses, the department has realigned and increased the number of programmes from six to seven. This is in line with the goals set in the previous Budget Vote. The Administration Programme supports the work of six other programmes, namely, Mine Health and Safety, Hydrocarbon and Energy Planning, Mineral Regulation, Mineral Policy and Promotion and Electricity and Nuclear Energy. The select committee supports the Budget Vote. Thank you, Chairperson. [Applause.]

Ms N P MAGWAZA (Western Cape): Chairperson, Ministers, and members, thank you for this opportunity to address you on the energy situation in the Western Cape. I don’t think we have ever realised how dependent on energy we have become. The situation in the Western Cape is indeed a wake-up call and we should not be complacent about the issue.

The province faces a critical three months as temperatures drop with the onset of winter and the demand for electricity rises. Against this backdrop we face an electricity shortage, which has already cost the economy billions of rands in lost revenue. Business, industry and residential consumers have been urged to cut down on their usage of electricity.

As temperatures plummet, the risk of load shedding increases. We expect this situation to continue until both reactor units at Koeberg are together back on line, which will be at the end of July. Eskom has assured consumers that the situation will then be back to normal.

Whilst we have been traditionally dependent on a carbon-based energy economy, recent advances in renewable energy technologies is encouraging. There is light at the end of the tunnel. There has been a worldwide increase in energy generation from renewable energy sources like solar energy and wind energy as large economies seek alternatives in the context of an increasing oil price and the looming crisis of a global shortage of oil.

According to PriceWaterhouseCoopers, the world’s energy demand is expected to rise by two-thirds between 2003 and 2030. Energy security has become a critical concern as demand outstrips supply. This is the result of the increasing difficulty to balance power generation and transmission with demand.

Energy consumption in South Africa measured against output is very high compared to our global competitors, due, partly, to historically wasteful and inefficient use based on the relatively low cost. The affordability and accessibility issue of poorer communities in a developing country context now takes a different turn, as supply becomes a major problem.

The surplus enjoyed 20 years ago is now a thing of the past. South Africans, especially the citizens of Western Cape, have learned this the hard way. We have been forced seriously to re-evaluate the way we consume and conserve this important commodity.

We are at the threshold of an unprecedented moment in our economic history when, for the first time in 25 years, consumers are enjoying the benefits of low interest rates and a brighter outlook for the future. In this age of hope, as our President calls it, our people are expected to participate in this shared economy as we aspire to a 6% growth rate towards 2014.

Integral to achieving this target will be a sound energy generation and supply system. Energy security will play a key role in the growth and development trajectory of the country, especially the Western Cape, given our unique location away from the electricity generation hub of the country. In this regard, Eskom is playing a key role in ensuring that government’s chances of setting the country on a 6% economic growth path are significantly enhanced. Against this backdrop, we are of the opinion that the Western Cape is in a unique position to capitalise on the use of its natural attributes and resource base in finding innovative solutions in order to meet the future projected energy demand.

The South African economy is predominantly driven by fossil fuels with a high carbon dioxide emissions profile. Relying on these generation sources alone is problematic from an energy security point of view, as has been highlighted in recent months.

The fossil fuel dependence presents an environmental challenge, which has already been highlighted in the environmental fiscal reform position paper that was recently developed by the National Treasury. The energy portfolio has to be diversified to limit the risks of dependence on carbon-based technologies.

Studies suggest that the Western Cape is highly vulnerable to the impacts of climate change, with significant implications in particular for the agricultural sector as well as for biodiversity, tourism and for the availability of water supplies.

Electricity in the Western Cape is largely supplied through coal and nuclear energy sources, with limited generation capacity in the Western Cape resulting in high dependency on imported electricity into the province.

Energy demand is characterised as follows: transport uses 59%, industry uses 17%, residential use comes to 10%, agriculture uses 8%, and commerce, public services and mining use 6%. The Western Cape has the significant potential for development of a range of innovative energy efficiency and supply-side initiatives.

The White Paper on the Energy Policy of the Republic of South Africa of December 1998, has identified the following five key policy objectives: increasing access to affordable energy services; improving energy governance; stimulating economic development; managing energy related environmental and health effects; and securing supply through diversity.

The integrated energy plan for the Republic of South Africa 2003 provides a framework for taking decisions on energy policy and for the development of different energy sources and energy technologies in the country.

The White Paper on Renewable Energy recognises the significant medium-and long-term potential of renewable energy. The DME energy efficiency strategy provides specific targets for reduction in energy demand by 2014 within the given demand sectors, with an overall target of 12% reduction in consumption.

The NER regulatory policy on energy efficiency and demand-side management sets annual energy efficiency and demand-side management, EEDSM, targets and specifies the programmes that would qualify for EEDSM funding.

Currently, industry is the major user of electricity in the province. Electricity is used mainly in the industrial, residential and commercial sectors. Given this profile and the future projections for energy use in the province based on current trends, some key issues need to be addressed.

The fundamental principles of a sustainable energy plan require a steady move away from fossil fuels as the foundation for energy supply; the introduction of cleaner alternatives; a steady increase in renewable energy sources; greater focus on energy efficiency; attention to the welfare of low-income households; and the development of an effective, efficient and affordable public transport system.

The growing demand for energy will also require a focus on the use of renewable energy and accelerated energy efficiency programmes. In South Africa, approximately 10% of electricity generated is used for the heating of water in the residential sector. So, the use of solar water heating, for example, would make good business sense and could form the fundamentals of catalysing a new industry sector for the manufacturing and assembly of solar thermal and solar photovoltaic systems.

In the context of the energy crisis facing the province, Eskom together with key stakeholders, have developed a Western Cape Integrated Recovery Plan to address the continuity of electricity supply in the Western Cape in response to the recent disruptions to power and the projected increase in electricity demand. The electricity supply to the Western Cape is currently constrained by the power. The Western Cape supports the Budget Vote. Thank you. [Time expired.] [Applause.]

Mr N D HENDRICKSE: Chairperson, hon Minister and the rest of the team, one feels a little bit lonely for it seems that the ladies have taken over already. I am the first male to speak here. [Laughter.]

Whilst we recognise the policy objectives of establishing regional electricity distributors, the first Red formed in Cape Town was mired in controversy surrounding inflated remuneration packages not authorised and approved by council, and luxury offices whilst there is plenty of office space in the city centre council complex.

The BEE, in terms of the Mining Charter, is making progress but we need to see more deal-making at a lower scale involving community and mine workers and not the usual BEE suspects.

The question of mine safety has reared its ugly head again, and one is happy to have heard from the Minister that that is being attended to and that they are working hard on it because one death is one too many.

More qualified black diamond traders need access to the market, which is still dominated by a few key players who buy the precious stones. Perhaps we need to look at market structure in terms of assisting new entrants in making a success of their ventures.

The state diamond trader that was established will go a long way to develop sustainable beneficiation enabling historically excluded – not disadvantaged – but excluded groups to benefit in the mineral wealth of the country. We have been totally excluded and this is perhaps one of the most exciting things that is happening in our country at the moment and we want to compliment your department on doing that.

Finally, I am of the view that Eskom’s intention to substantially increase their tariffs between the hours of 6 and 9 pm would have a drastic impact on the life of the working class as this is the time they return from home and that is the only time that they have to cook their food.

I think we have to look at that again. We also need to inform our public nationally of nuclear power and its impact and the safety mechanisms that we are putting in place especially with the pebble-bed reactor that we are planning, as this is something new that is coming up and is not the normal nuclear energy supplier.

I want to compliment the department on the way in which they have tackled their problems particularly in the mining sector. I am sorry that all these people ran away, but there are lots of men who will come up and make use of those BEE opportunities! Thank you. We support the Budget. [Time expired.] [Applause.]

Mr J M SIBIYA: Mutshami wa xitulu manana Hollander, tiholobye ta hina na museketeri wakwe manana Hendrikse na manana Xingwana ha nkhensa, hina macomrade.

Chairperson Mrs Hollander, hon Minister and her deputy, Mrs Hendriks and Mrs Xingwana, we, the comrades, are thankful.]

Before I continue, as a matter of dignity, I must say something concerning the former Oil-for-Food Programme in Iraq. That was the programme of the UN. Some of the stakeholders and role-players are alleged to have done something through the programme. The UN has set up a commission of inquiry and all those alleged to have done something have been and are being called upon to answer some questions. Therefore there is no need for any of us to make pronouncements before that commission of enquiry makes its findings known.

It is for this reason, amongst other things, that I would refer to the British progressive scientist of the 18th century, Sir Thomas Moore, who dared to challenge the order of the day by saying the world is not flat and that instead it is round. He was executed, but before he was executed, he had the following words for his executors. He said, “The wise do not tread where the foolish play.” I thank you.

Tsalwa ra hina ra nhlawulo leri hi ri tirhiseke eka nhlawulo lowu nga hundza hi 2004, ri vula leswaku hulumende loyi a nga ta rhangeriwa hi ANC u ta endla hinkwaswo leswaku hi lembe ra 2012 muti wun’wana na wun’wana wu kota ku fikelela gezi etikweni ra hina hinkwaro. Hi ku landzelela xitshembiso lexi, hulumende wa hina, hi ndzhawulo ya swicelwa ni ya swipfurhi, wu kunguhatile leswi landzelaka, leswaku loko ku fika 2012 muti wun’wana na wun’wana hakunene wu kuma gezi. Xosungula, ku kunguhatiwile matirhisele ya swipfurhi leswi swi nga thyakiseki mbangu.

Xavumbirhi, va kunguhatile ku nyika vanhu mpfumelelo “layisense” ku va va kota ku xavisa tipetroli loko kuri ku va swi kota. Va tlhela va veka milawu ya makumele ni matirhisele ya malahla hi ndlela leya ku va vanhu va nga tikumi va wela emakhombyeni. Hikuva ha swi tiva, khale ka kona vanhu va ka hina a va tirhisa timbawula. Na sweswi va ha ti tirhisa van’wana. Va pfa va etlela va rivala va nga timangi va pfuka mundzuku va lovile hi mhaka ya musi lowu wu humaka laha ya eka mbhawula lowuya. Se, hulumende wa hina u lava ku swi sivela kuri swi nga humeleli.

Nakona hulumende loyi u lava ku lulamisa makungu ya leswaku a kuma swipfurhi leswi loko hi tirhisa swona hi nga tikumi hi ri makhombyeni na ku va hi kuma hi lova ku fana na leswi timbhawula ti nga hi endla swona. Hulumende wa hina loyi, wa swi tiva leswaku vanhu va hina le switandini le handle le, hayi emadoropeni, va na rona gezi. Kambe nchumu lowu wu hi karhataka hi lowu, lowu hi lavaka ku kombela Holobye wa hina Manana Hendriekse leswaku va hi pfuna. Magezi lawa ya nga kona le, loko ko ba moyanyana wuntsongo njhe! – even if there is soft wind- yo timeka. Ya ya vuya endzhaku ka tiawara ta mune kumbe nthlanu, se a hi kombela ku va hi pfuniwa kuri magezi lawa ya nga timeki hambi kuri rini a ya timeki loko swi fanele ku fana na le doropeni. Ya timeka loko kuri na swihangu, kuri na swihuhuri -hale wind. Kutani le ka hina le nkarhi wun’wana na wun’wana ya timeka. A va hi pfune.

Nakona ku na makungu ya leswaku vanhu lava kotaka ku va va xavisa swipfurhi swo fana na tipetroli na malahla va andza va nga vi lavantsongo. A va vi va hlayile kuri vanhu va kota ku kuma vukorhoki services - lomu va tshamaka kona.

Xin’wana lexi nga kona i mhaka ya kuri petroli i nchumu wun’wana lowu kulukumba ngopfu lowu wu tirhisiwaka, se a hi lava leswaku Holobye wa hina va hi pfuna ku va hi tswisisa swilo swingari swingani eka mhaka leyi ya petroli. Xosungula, minxavo ya petroli yi ya ehenhla masiku hinkwavo swi nga va swi vangiwa hi yini? Nakona minxavo leyi ya petroli yi tisa ku yini? Hi vutisa leswi hi mhaka leyi, ha swi tiva leswaku tiko ra hina ra Afrika Dzonga ra swi kota ku va ri cela ri cela oyili kumbe oyili leyimbisi yo ringana kwalomu ka 45 000 wa tibarele. Se, leyin’wana oyili ya ku va yi kota ku tiko ri tirha kahle ri nga khwiti hi yi kuma kwihi na swona hi yi kumisa ku yini, leswaku loko hi ya le handle le vanh’wini hi ta kota ku va hlamusela va swi twisisa.

Se ku na tindhawu tin’wana ta kufana na le ka va Mahatlani, mi nge ku tivi a ti kona eka mepe tindhawu leti, va-Wayeni, va-Majozi, va-Xinyamana, vanhu lavaya va nga lomuya i ntiyiso gezi va na rona, kambe gezi leri a ri tshembisi. Mi nga pfuka nampundzu mi kuma ringari kona handle ka moya, loko mi lumeka, mi kuma ku nga ri nga gezi. Xosungula a mi tivisiwanga eka radio kuri ku ta va na swiphiqo swo karhi. Naswona a byeriwi kuri ri ta vuya nkarhi muni ku fana na la, ha tivisiwa, va vula kuri ku suka hi awara yatsevu ku ya fika hi nkarhi wo karhi tilunghiseni gezi ri tava ringari kona. Swa twala va lava ku tirha, kambe le ro nthi! A va vuli. Ro tshuka ri nyamalala ri ya riya vuya endzaku ka tiawara ta tsevu. Hi swin’wana swa leswi swi vangaka kuri ku karhatekiwa hi matirhele ya lomuya makaya.

Loko hi twa lava va swi tivaka va hi byela leswaku tipetroli eBotswana na le va Swaziland ta xaveka, hi marito man’wana tichipile kambe la ka hina ya durha. Se swi nga va swi vangiwa hi yini? Hi lava ku kota ku hlamusela vanhu loko hi ya le “constituency office”. Hi kombela ku lemukisiwa, hikuva hi mativelo ya hina tiko leri ra hina ri fuwile hi swicelwa ku tlula matiko laman’wana lawa ya nga exikarhi ka hina kambe loko swi ta eka minxavo, hina swa durha vona a swi durhi ngopfu. Hayi! Swa hi phazamisanyana a va hi hlamuseli. Eka tin’wana tindhawu leti mi nge ndzi vulavula hi xinghezi laha. (Translation of Xitsonga paragraphs follows.)

[Our election manifesto in the recent elections in 2004 states that a government that is led by the ANC will do everything in its power so that every household in the country would have access to electricity by 2012. To realise this dream our government, through the Department of Minerals and Energy, has planned to ensure that every household indeed accesses electricity by 2012. Firstly, there is a plan to use energy that will not pollute the environment.

Secondly, there is a plan to grant licences to people to sell petrol where possible and lay down ground rules for the acquisition and safe usage of coal that will not endanger people’s lives, because we are aware that our people used, and some still use, braziers. At times they go to sleep forgetting to switch them off, and lose their lives as a result of the smoke that is emitted by these braziers.

Now our government wants to prevent that from occurring and also devise means for the acquisition of energy transmitters that when used do not endanger us and cause our death, which the braziers are capable of doing. This government is aware that our people in villages on the outskirts, not in the locations, access electricity, but the challenge that faces this power supply is the one that we request our Minister, Mrs Hendrickse, to help us resolve. The electric power we have, no matter how swiftly the wind blows, the current is cut. It is only restored after four or five hours; now our request is assistance so that our electrical current will not go off at just any time, but only when it is necessary, like in urban areas when you experience disruptions only when there are hail storms, or a whirlwind. At my place we experience these blackouts at any time; please help us.

There are also proposals that the number of people who may sell energy like petrol and coal should be increased. It should be a reasonable number so that people could receive services in their respective areas.

The other thing is that petrol is a commodity that is largely used, so I would like our Minister to highlight for us a few things in this regard. Firstly, petrol price hikes take place frequently; what could be the cause of this, how are hikes and petrol prices determined? How is the price determined? We make these inquiries, because we know that our country, South Africa, has the potential for producing about 45 000 barrels of crude oil; now where does the oil that keeps the country running come from? How is it acquired? We ask these questions to enable us to give a satisfactory explanation to the people.

There are some areas like Mahatlani that you won’t know because they do not appear on the map, as well as Wayeni, Majozi and Xinyamana. It is true that those people access electricity, but it is unreliable. One morning you wake up to find that there is none, except when the wind was blowing. Then, you were not notified through the media that there would be problems or when it would be restored either. Here we are notified that from six-until-such- time there will be no electricity, therefore be ready for the blackout. It is understandable because they are doing maintenance. In those areas it just goes off and is restored after six hours. These are some of the problems we experience in villages.

Learning from those with knowledge, we are told that petrol is cheaper in Botswana and Swaziland, but here at home it is expensive. What is the cause? We want to be able to explain it to our constituency, we want to be enlightened because according to our knowledge we are rich in minerals, more so than other countries around us, but when it comes to purchases, we pay more and they pay less. No, it is disturbing. Let us have an explanation. In other areas … let me say this in English.]

In some places, you find a very big village of about 400 to 800 households. While none of the people in that village have electricity, yet there are power lines, which we do not know whether they are from Mozambique or Camden. They pass through that village and take the electricity uphill where a certain Mr Van Tonder stays while the people at the foot of the hill do not have any electricity. We know these are the things we inherited from the legacy of where we come from. Perhaps the government might try to look at some of these things so that they can be corrected as well.

Another thing is that our government has introduced the regional electricity distributors, a very big step forward. We want to thank the Minister for this and also thank all those that work with her, ranging from the lowest ranked official to herself and those above her. In our understanding, that will make it easy to avoid having one centre for electricity distribution which would mean that if it goes off everybody will be affected. But, in this case, if it is only that particular region that has a problem it will be that only region that is going to be affected and the rest will be in a position to move on. It is a very brilliant move; we want to thank you for that.

I now come to another area and, please, don’t become shocked because I will explain why I say what I am saying. The hon Minister indicated to us that the government has now in place nuclear waste management policy - if I am not right please take me to task. Am I right madam? Very good. [Laughter] This then means that it is about time that we began to think about the possibility of resorting to nuclear power, and only for strictly civilian use. If I don’t do that I know some people outside here will ask, “What is he saying?”

I am talking about nuclear power strictly for civilian use only so that we are able to cope with the demand of energy in our country, and we also advance our techniques for both storage and disposal – if it comes to that as a need. In that way we will avoid the situation we found in Ukraine in 1986, where the Chernobyl nuclear station exploded. I think more than 16 000 people were affected. Even today, some of them live with the effects of that explosion. So we can have a way of looking at that.

I am saying this because I am aware that in 1994, when our new government came into power, we found out that this country already had three light water nuclear reactors. When former President Mandela came into power …

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Hon member, your time has expired.

Mr M J SIBIYA: In conclusion, that son, leader, teacher, pan-African, the former Prime Minister of Congo who was captured by the reactionaries of this world - the Moise Tshombes and the Kasavubus - wrote a letter before he died. The last paragraph read:

Neither brutality nor violence nor cruelty will make me to ask for mercy. I prefer to die with my faith unshaken because I know that Congo and Africa will write their own history. That history will be glorious and dignified.

We are writing that history. I thank you. [Applause.]

The MINISTER OF MINERALS AND ENERGY: Chairperson, hon Deputy Minister, special delegates, hon members, members of the industry in the public gallery, this has been a very interesting debate. I would like to thank you all for participating and supporting our Budget Vote.

So many important things have been said that I won’t be able to deal with them in ten minutes. But the department is here and has taken note of whatever I am not going to be able to touch on, because quite a lot of issues that we actually do have answers for have been raised.

Let me start off by saying to the Chair of the Select Committee and say indeed …

… ukuba kucacile ukuba uyazazi izinto ezidla umzi, kuba zonke ezi zinto azivezileyo zizinto esihleli phezu kwazo nesizama ukuzilungisa. Ngoko, ndiza kuthetha ngezimbalwa kuzo. Ezinye andizi kukwazi ukufikelela kuzo. (Translation of isiXhosa paragraph follows.)

[… that it is quite clear that he knows about these critical challenges because all the things he has mentioned are challenges to us, and we are trying to solve them. Therefore, I will only talk about a few of them I will not be able to cover all of them.]

Firstly, we regret that some people lost their lives during the recent sit- ins by ex-miners or their beneficiaries who were sitting in at the Union Buildings. Unfortunately, this is an issue that is out of the hands of the Department of Minerals and Energy. Hence, it is a matter that is under the jurisdiction of the Department of Labour. They are dealing with it. They have set processes in place, together with the province, the Chamber of Mines and national government.

Kambe kukho umntu ogeza gqitha wangaphaya eTranskei, ekuthiwa nguNomazele, oqhatha aba bantu ngenxa yokuhlupheka nobuhlwempu abakubo. Ubathembisa ngokuba uza kufika apha abafumanele imali yabo. Yena ubafaka ezibhasini, ebahlawulisile ke phofu, abazise apha, bashiyeke begodola, belambile, balale engceni ngeli xesha yena elele kamnandi ehotele. Lo mba ubekwe esweni liSebe lezaBasebenzi. (Translation of isiXhosa paragraph follows.)

[There is this very mischievous person from the Transkei by the name of Nomazele, who manipulates these people because of their poor and vulnerable situation. She promises them that she is going to collect money on their behalf. She puts them onto buses, charges them transport fees, brings them here, leaves them freezing, hungry and sleeping on the grass, while she is sleeping comfortably in a hotel. This matter, however, is being closely monitored by the Department of Labour.]

In order for us to avoid a situation like this from arising in future, our new mining law, the Mineral and Petroleum Resources Development Act, makes it peremptory for all companies to provide social plans when they apply for their licences to ensure that we address issues of human resource development and community development so that when mines are closed down there is at least a plan for the people who are being retrenched that they have alternative skills that they can go and use at home or that they can do some other things like starting their own businesses. That is very well noted.

I think the hon member raised the issue of mine-dumps, which was also raised by the hon Mabe. The rehabilitation of derelict mines is currently being addressed by the department. Currently, tenders for eight identified sites have been assessed and finalised. We expect that work on this will be finalised by the end of this financial year. It is also planned that SMME opportunities will be made available, particularly in the area of vegetation, after all the earthworks have been finalised and cleared. The focus of this is currently in the Northern Cape.

New tenders are going to be issued during the course of the year for more sites that are to be rehabilitated. What is important to say in this regard is that we are targeting women and people who are unemployed, who do not need a lot of skilling to do the work. So, we hope you will be watching this space so that we can get as many women involved when we issue these tenders.

Hon Mabe, I think we have dealt with the outages in the Western Cape and in the country. Indeed, we agreed that better planning by Eskom is going to be required for us to avoid a similar situation in future. But hon members have been part of the debates in this House and know that the Electricity Regulation Bill introduces stiff penalties for breach of licence conditions which were not there before. So, that gives a bit of weight of power to the regulator in the event of breaches.

Also, the regulatory framework prescribes norms and standards relating to the quality of supply, including maintenance standards, levels of investments, tariffs and their levels. There is also improved reporting requirements on the part of the licensees. This, we believe, is going to help us deal with and address the problems of unplanned shutdowns and supply disruptions at generation, transmission and distribution.

Lastly, we will also be concluding the section 76 issues of the Constitution that will be coming through this House relating to electricity regulation as well as electricity reticulation. We believe that the situation that we are in will in future be avoided by all these amendments and also by better planning and the better focusing that I spoke about in my speech.

I just want to address one issue that was raised by hon Chen. I think, hon member, you misunderstand the way electricity infrastructure is rolled out, particularly how the costing works because there is indeed no direct correlation between what you said are 18% achieved connections and the 56% budget spent. The cost is simply a function of the extent of the infrastructure backbone that must be provided. I am sure members will appreciate that as we electrify rural areas, the costs get higher because those are areas that were neglected that we have to start from the very bulk infrastructure in order to get electricity out to the people. We are confident as a department that we are going to be able to reach universal access if we get the budget that we say we need.

The hon Chairperson of the Select Committee raised a very important issue of HIV/Aids in the mining industry. I want to assure her that there is definitely a programme – a joint intervention between the Department of Minerals and Energy and the industry in trying to address the impact of HIV/Aids. We are working together and we hope to have an HIV/Aids summit in September, where we will be looking at what companies are doing and what more can be done both from the companies’ side as well as from our side.

With regard to the issue of skills retention in the Department of Minerals and Energy, I must assure you hon member that that is an issue we are dealing with. We have actually developed as a department a departmental scarce skills recruitment and retention strategy within the national framework that has been issued by the Department of Public Service and Administration and we are busy working on that. But over and above that, there is ongoing training of senior managers. It must be appreciated that both we and the private sector are competing for the same skills that are in the department, but I think this scarce skills recruitment and retention strategy is going to assist us to retain staff.

With regard to a biofuel strategy, we are very advanced. Hon members will recall that Cabinet gave us a mandate to go and develop a bio-fuel strategy using some energy crops - sugar cane, maize and soya amongst other things. Task teams are hard at work trying to finalise a strategy which we hope we will bring to the Cabinet during the last quarter of this year. Indeed, we are aware that there are some provinces that have already started with their own small operations. We hope that once we present the strategy it will ensure that there is interest from the private sector, that the necessary incentives are put in place, and the necessary regulations to ensure that whatever is produced gets on to the grid with the oil industry that will also be in place.

Yes, we are phasing out paraffin and we are promoting LP gas because of the problems that the hon members have raised.

Hon Hendrickse, I think my speech contains a lot on what we are doing on nuclear energy, so I won’t deal with that. You said in your speech that women have taken over. Not really; I don’t think women have taken over. When we have a woman President, then we will have taken over! [Laughter.] And that is sure to happen.

On other issues such as the petrol price, we’ve had responses for all of those. But time is running out. The hon Deputy Minister did touch on beneficiation.

I would like to thank all members for participating in the debate. The last issue I want to raise and to agree on with the chairperson of the Select Committee is around HIV/Aids. It is definitely irresponsible for our leaders to distort information about HIV/Aids. We must be very clear: There is no cure for Aids. Nothing will cure Aids. Not a shower. Not ARVs. Nothing. What you must do is follow the ABC that government has set out. It is still the best. You abstain. If you can’t, please be faithful and have one partner and if you still can’t do that, you have to use a condom. Nothing else will help you protect yourself from contracting the disease. Obviously, those that are already affected and infected need to take care of their health, body, watch their nutrition and take whatever will give them a long lease on life. But we mustn’t fool ourselves and think that there is a cure for this disease. It is always a pleasure to participate in debates of this House. Thank you, Madam Chairperson. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Thank you, hon Minister. I have an announcement from the Chief Whip. He says that you must please ensure that before you leave you have your T-shirts, caps and everything in your paperbags as gifts from the Department of Minerals and Energy. [Applause.]

Debate concluded.

The Council adjourned at 15:56. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS



                         FRIDAY, 26 MAY 2006

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of 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].

2. The Minister of Environmental Affairs and Tourism

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

                         MONDAY, 29 MAY 2006

TABLINGS

National Assembly and National Council of Provinces

1. The Minister for Provincial and Local Government

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

1. The Minister for Public Enterprises

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


                        TUESDAY, 30 MAY 2006

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Minerals and Energy

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