THURSDAY, 19 MARCH 2009 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

                                ____

The Council met at 09:03.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORT – see col 000.

The CHAIRPERSON OF THE NCOP: Order! Hon members, I have been informed that the Whippery has agreed that we won’t have motions, except for the motion on the Order Paper, as printed in the name of the Chief Whip.

RESOLUTION TO EXTEND DEADLINE OF AD HOC JOINT COMMITTEE ON THE APPOINTMENT OF MEMBERS TO THE NATIONAL YOUTH DEVELOPMENT AGENCY BOARD

                         (Draft Resolution)

The CHIEF WHIP OF THE COUNCIL: Chairperson, I move the motion on the Order Paper as follows: That the Council, noting the resolution it adopted on 17 February 2009, inter alia, setting the deadline for the Ad Hoc Joint Committee on the appointment of members to the National Youth Development Agency Board to report by 19 February 2009, and subject to the concurrence of the National Assembly, resolves to extend the deadline by which the Ad Hoc Joint Committee has to report to 19 March 2009.

Question put: That the motion be agreed to.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

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

The CHAIRPERSON OF THE NCOP: I am told that this is a maiden speech. [Laughter.] Both a maiden speech and a closing speech on the last day. Seeing as the Deputy Minister is addressing us for the first time today, I would like to, on behalf of the Council, congratulate you formally on being elevated to the position of Deputy Minister. We are glad that you are addressing us today.

                      DIVISION OF REVENUE BILL


            (Consideration of Bill and of Report thereon)

The DEPUTY MINISTER OF FINANCE: Chairperson, indeed it is a privilege for me to address you, in my maiden speech, on the last day of the sitting of this House, of course. Firstly, let me express my sincere appreciation and gratitude to everybody who has participated in the processing of the 2009 Division of Revenue Bill. In particular, we are eternally grateful to the Select Committee on Finance, under the leadership of Mr Ralane, for their sterling work. This is particularly remarkable bearing in mind that, due to the elections scheduled for 22 April 2009, the processing of the Bill had to be expedited, which afforded the NCOP limited time for the processing of the Bill.

The Division of Revenue Bill is the embodiment of co-operative governance, which is at the heart of our democracy and Constitution. It’s an outcome of extensive consultative processes among technocrats and between the political leadership of the three spheres of government.

The division of resources among the three spheres of government is one of the most critical steps in the Budget process as it provides the basis for the preparation of the national, 9 provincial and 283 municipal budgets for the coming financial year.

The Bill gives effect to section 214(1) of the Constitution and the Intergovernmental Fiscal Relations Act of 1997, which require an annual Act of Parliament to provide for the equitable division of revenue anticipated to be raised among the three spheres of government.

There is no doubt that this Division of Revenue Bill is presented to you when the world economy is in turmoil and each and every country in the world is finding ways of protecting itself from the adverse effects of the sharply slowing economic conditions.

A large part of the strategy is to explore ways of ensuring that we do more with the little that we have, that we employ our resources more smartly and more efficiently and that we minimise and, at most, eradicate wastage.

The period ahead will require of us, as a collective, that we improve our oversight over the scarce resources to ensure that the quality of services is improved and that the poor are not left behind during these difficult times.

The Bill before us covers in detail all transfers to be made to provinces and municipalities over the next three years. The explanatory attachments also contain detailed information on the formulas for the provincial and local equitable share allocations, and a detailed framework on each conditional grant to a province or municipality.

The publication of this information will enable every province and municipality, and every national and provincial department, to prepare their multiyear budgets in terms of the Public Finance Management Act.

The good strides made by South Africa in ensuring a transparent budget process have been recognised internationally. South Africa is ranked second in the world on the Open Budget Index, which measures the transparency and quality of budget information. This is indeed a remarkable achievement.

Allow me to caution that the certainty of flows alone is not sufficient to ensure that services are delivered to our people. This House has an exceedingly important role to be even more vigorous in its oversight role to ensure that these fiscal flows result in services being delivered to our people.

This House has been vigilant in the past in ensuring that funds are spent and that these funds are spent on the programmes that seek to ensure that the poor receive quality services. We expect that this good work will continue to ensure that value for money is indeed attained during these leaner fiscal times.

More effective and efficient spending by every province and municipality will make sure, for instance, that no children learn under trees; that clean and cholera-free potable water is delivered to our people; and that access to housing and public transport for our people is fast-tracked.

This Bill, with the wealth of information it contains, such as the outputs set out in the frameworks for conditional grants, is but one of the tools we put before this House for it to exercise oversight over national departments, including National Treasury, provinces and municipalities. Let me now turn to some of the highlights of the deliberations in the select committee on the Bill that this House is about to adopt today, as I believe it will.

I am aware that some of the discussions were quite vibrant. Some of the issues that were raised by those who made representations to the committee pointed to some pertinent matters about our budgeting, financial management and performance monitoring system.

Firstly, and perhaps most importantly, the deliberations highlighted the importance of the NCOP in exercising its oversight role.

Secondly, the discussions highlighted matters of capacity and the quality of spending. I am told that members of the select committee raised concerns that insufficient investment in libraries, community and sports facilities should be addressed as these types of interventions are essential tools in creating an environment that supports the development of our youth. At the same time, attention needs to be given to putting in place appropriate scholar transport systems that are supportive of urban and rural scholar transport needs.

Thirdly, employment-generation programmes will have to be supported in the present economic climate the country finds itself in, hence phase two of EPWP, the Extended Public Works Programme. I am informed that there was rigorous debate on this matter. The concerns raised by the committee have been noted and the allocations will be adjusted in future to ensure that the programme is also institutionalised in rural municipalities.

Lastly, the importance of ensuring that more poorly resourced municipalities are appropriately funded was stressed throughout the hearings. As part of the ongoing review of the local government fiscal framework, the focus will be on strengthening the revenue base of metropolitan and other larger urban municipalities and increasingly targeting transfers to more poorly resourced municipalities.

A number of reforms have already been introduced to fund poorly resourced municipalities more appropriately, such as introducing a minimum of R500 million for the Municipal Infrastructure Grant allocation and making appropriate adjustments to the revenue-raising component of the local government equitable share formula.

Again, additional resources alone will not address the challenges faced by these smaller and rural municipalities. Steps will have to be taken to ensure that these additional flows to these smaller and rural municipalities result in tangible service delivery improvements and are not used to pay salaries and consultants’ fees only.

The division of revenue, as set out in this year’s Bill, gives effect to the priorities articulated by President Kgalema Motlanthe in his state of the nation address on 6 February, which were further elaborated on in the speeches of the Premiers in our nine provinces. The budget framework allows us to provide R161 billion in additional spending over the next three years, in comparison with our spending plans from a year earlier. Over the period ahead, government’s spending plans are focused on enhancing the quality of education; improving the provision of health care, particularly for the poor; reducing infant, child and maternal mortality rates; reducing the level of crime and enhancing citizen safety; expanding the built environment to improve public transportation and to meet universal access targets in housing, water, electricity and sanitation; and decreasing rural poverty by taking steps to raise rural incomes, and improving livelihoods by extending access to land and support for emerging farmers. The resources provided for in this Bill will enable each sphere of government to step up the programmes targeted in these priorities.

Of the R161 billion additional resources, national departments will share R101,5 billion – including the R50 billion for Eskom – provinces R47,8 billion and municipalities R11,3 billion over the Medium-Term Expenditure Framework. Further details on the specific programmes and projects to be implemented in each province and municipality over the Medium-Term Expenditure Framework can be found in their 2009 budget statements.

Schedule 1 of the Bill provides a summary of the allocation of funds to the three spheres of government. Of the R738,6 billion Budget in 2009-10, the national department functions amount to R483,7 billion. This includes debt service costs amounting to R55,3 billion and a contingency reserve of R6 billion. Provinces receive R231,1 billion and R23,8 billion is allocated to local government.

Schedules 2 and 3 allocate equitable shares to provinces and municipalities. Schedules 4 through to 6 allocate conditional and other grants to provinces and local government. Schedule 7 allocates in-kind transfers to municipalities. Schedule 8 allocates incentives for provinces and municipalities to meet targets with regard to priority government programmes. The 2009 MTEF allocations to provinces provide for the further strengthening of social services programmes that have a high impact on human development, the quality of life and social transformation.

A substantial share of the additional resources is expected to go to education to ensure that services and quality are improved. The 2009 Budget extends the no-fee-schools policy from the poorest 40% to the poorest 60%; reduces the teacher-learner ratio in the poorest 20% of schools; caters for facilities for learners with disabilities; and extends the coverage of the national school nutrition programme. Provision is also made in the infrastructure grant for provinces to increase classroom space for Grade R learners and to upgrade school infrastructure, secure facilities and install libraries and laboratories. These investments constitute a considerable effort to improve the quality of schooling in our country.

Provincial budgets will reinforce the strengthening of the health sector so that South Africans who do not have medical insurance can also enjoy good quality health. Allocations are set aside to expand the range of vaccines provided to children in order to reduce maternal and child mortality and to combat HIV and Aids, and Extreme and Multidrug Resistant Tuberculosis. The hospital revitalisation programme is also prioritised in the period ahead. In addition, provinces are expected to step up their own hospital maintenance budgets.

Our housing budget receives a further R3,7 billion, taking the total allocation over the next three years to R44,7 billion. In 2003-04, we spent R4,6 billion on housing. By 2011-12, the end of our present budgeting period, the budget rises to R17,2 billion. Allocations for water, sanitation, electrification and municipal roads all rise in a complementary fashion. It is thus very important that this House continues to ask questions concerning the returns for this sizeable investment.

Access to public transport has a major impact on the economy and on people’s lives, particularly the poor that are mainly reliant on public transport to get to work and education facilities. The need for an effective public transport system is therefore critical to creating a better life for all. Transport-related adjustments include the creation of a new conditional grant, the public transport operations grant, of R11,5 billion over the period for bus subsidies.

The CHAIRPERSON OF THE NCOP: Excuse me, hon Minister. I’m told that people cannot hear you. Or is it a case of the unavailability of interpreting services? [Interjections.] Oh, no sound volume?

An HON MEMBER: Chairperson, the sound volume is very low. We can’t even hear you speak, Chairperson. I have to read your lips.

The CHAIRPERSON OF THE NCOP: You can’t hear me?

The DEPUTY MINISTER OF FINANCE: Can I start all over again, Chairperson? [Laughter.]

The CHAIRPERSON OF THE NCOP: No, Deputy Minister, just continue. Can the staff concerned increase the level of the sound volume, please? [Interjections.] Continue, hon Minister.

The DEPUTY MINISTER OF FINANCE: Turning to local government, I’ve spoken about provinces; over the next three years municipalities will receive R181,7 billion, including in-kind allocations or an additional R11,3 billion. This includes R22,9 billion for the sharing of the general fuel levy with metropolitan municipalities, which will be introduced from the 2009 Budget as the primary replacement for the former regional services council levies. The local government equitable share receives a further R2,5 billion for the delivery of free basic services to all poor households.

Municipal infrastructure-related spending is allocated an additional R8 billion over the next three years. This results in total infrastructure transfers to municipalities of just over R58,3 billion over the next three years, which increases to R67,5 billion, if infrastructure that is provided on behalf of municipalities, that is in-kind transfers, is also included. These adjustments are intended to enhance access to water, sanitation, electricity and roads; to extend regional bulk infrastructure to support such services to the poor; to promote municipal initiatives that will support more efficient use of energy; and to support host cities in their preparations for the Fifa Confederations Cup in 2009 and the 2010 Fifa World Cup. We need to ensure that the intergovernmental grants at our disposal are designed in such a manner that they support optimal outcomes. It has become evident that there is a need to reform the Municipal Infrastructure Grant to respond appropriately to the different demographic, economic, infrastructural and institutional challenges faced by the 283 municipalities in our country. From the 2009 Budget, the Municipal Infrastructure Grant to cities will enable cities to manage more effectively, and to support and account for built environmental outcomes by rather focusing on their entire infrastructure programme performance than solely on project outputs. Although smaller, more rural municipalities will continue to account for project outputs, attention will also be given to introducing innovations that will address the capacity and resource deficiencies faced by these municipalities so as to improve expenditure outcomes.

Finally, allocations for capacity-building total R1,7 billion over the 2009 MTEF period. This is further complemented by the Siyenza Manje programme, via the Development Bank of SA, to develop skills in engineering, planning and financial management within municipalities. In the period ahead, government will take steps to co-ordinate these capacity-building initiatives to avoid duplication and contradictions. These allocations are aimed at supporting local programmes that will provide for sector investment in underserviced communities. Together with increases in housing allocations, this should provide a major boost to local economic development.

In conclusion, provinces and municipalities continue to play an important role in accelerating growth and job creation, broadening economic participation and reducing poverty. Taking into account the current economic downturn, it will be exceedingly important in the period ahead to take stronger action in pursuit of efficiency and better targeted expenditure. Expenditure priorities of provinces and municipalities therefore need to focus on more efficient and effective service delivery, protecting the poor and creating employment.

Chairperson and hon members, once again, thank you very much. And together, we can do more. [Applause.]

The CHAIRPERSON OF THE NCOP: Hon members, I have been informed that the microphones are not functioning properly, but if you use the ear pieces provided, you will be able to hear better.

Ms D ROBINSON: Hon Chairperson and hon members, the Division of Revenue Bill for 2009 was tabled in a very different economic climate to that in which these Bills have been tabled in recent years. The world economy, and that of South Africa, is in a worse position than it has been for several decades. However, the DA welcomed Minister Manuel’s decision to keep to his considered and responsible fiscal position in the current global economic environment.

This Bill is the most important Bill passed annually, as it is a recognised critical step in the budget process, allocating resources to the three spheres of government. It is a process essential for national government, the 9 provinces and each of the 284 municipalities to be able to determine their budgets. The process for making this decision is at the heart of co- operative governance - the ideal envisaged in the Constitution of South Africa.

As members of the select committee we are convinced that the debates on the division of revenue constitute the foundation of our work and our oversight responsibilities. We welcome the fact that the following have been prioritised: enhancing the quality of education; improving the provision of health care, particularly for the poor; to reduce infant mortality, child and maternal mortality rates; reducing levels of crime and enhancing citizen safety; expanding the built-environment to improve public transportation and meet universal access targets in housing, water, electricity and sanitation; and decreasing rural poverty by taking steps to raise rural incomes and improve the productivity of farms. Improving food security for our nation through increasing the number of extension officers to support emerging farmers is vital. However, I must caution that, while making funding available is vital and laudable, the most important step is to improve on delivery and accountability. There must be an emphasis on quality spending and responsible spending.

Mentoring is vital to improving quality service, and so is the enforcement of checks and balances. For this to happen there must be an improvement in the work ethic and in the performance of all officials, from the Directors- General down to the lowest levels. And so too we need a more responsible attitude from our mayors and local councillors, concentrating not so much on perks and privileges but on service delivery to the poor and neglected, those who have been sidelined and neglected in the pursuit of power and influence. When committees, whether from national or provincial parliaments, do their oversight work, they should keep this most important document, the Division of Revenue Bill, in mind.

We welcome the following improvements made in the current Bill: the recommendation that, just as the Division of Revenue Bill requires that indicated allocations to schools and hospitals be gazetted with the tabling of provincial government budgets, this practice should be extended to clinics and other primary health care facilities as and when they fall under provincial control. The intention is to address bottlenecks that are hampering housing services delivery by accelerating the accreditation of municipalities with adequate capacity in line with the framework provision of the Integrated Housing and Human Settlement Development Grant. I refer here, in particular, to the City of Cape Town, which was denied accreditation contrary to the spirit of co-operative governance. Who suffered? The poor who desperately await homes of their own.

The recommendation was made by the FFC to ensure that spending for public transport infrastructure for 2010 is linked to broader city development plans. With the introduction of the new conditional grants to provinces and local governments, it is believed that such grants will strengthen the capacity of governments at all spheres to accelerate service delivery. However, there is an area of concern, because the equitable share formula used is largely population-driven and the allocations it generates are sensitive to shifts in populations across provinces. Such population shifts, in turn, lead to changes in relative demand for public services across the provinces. Population shift patterns in provinces like the Western Cape and Gauteng need very special attention to ensure that underestimations in population trends are accommodated to avoid increases in current backlogs.

I am appealing to Minister Manuel and Deputy Minister Nene not to forget about significantly increasing the conditional grant for libraries every year when I am no longer here to make this appeal to them. I am also appealing to you, hon members, to ensure that the provinces spend the full allocation of the conditional grant, so that libraries can be built in order for literacy and education to become top priorities at schools and in every home. In this way our nation can prosper and thrive with jobs for all.

In conclusion, it was Thomas Jefferson who once wrote that: “The purse of the people is the real seat of sensibility”. The way in which we expend that purse shows how we care about the poorest and most vulnerable in our nation and that our ideals are not just empty rhetoric. Let us all remember that as we go into this election period.

I thank the members of the Select Committee on Finance, Scof, for their spirit of collegiality over the past five years in the interest of the people who elected us to Parliament. Finance committees are generally not very political or combative, as they focus on figures rather than on ideology and I think it is a good idea for all of us to concentrate on service delivery to the people. We have insisted on better performance and have sometimes sent mayors and officials away with their tails between their legs, and told them to come back again when their figures made sense, but that has always been in the interest of service delivery. So, let us take that forward, as we all assume new roles in the next term of office. Thank you. [Applause.]

Mr T S RALANE: Chairperson, Deputy Minister, congratulations to you, Deputy Minister, on your appointment that is accompanied by new responsibilities.

Hon members, this is our last engagement for the Third Parliament. All things considered, we have an admirable record of political decisions. This, at times, was as a result of robust engagements which invariably produced democratic and progressive outcomes. In the Select Committee on Finance we were frequently challenged by contentious issues, but hopefully the results proved edifying. I thank my colleagues in the Select Committee on Finance for their co-operation in ensuring progress in the completion of the committee’s work. I also wish the public representatives to have successful election campaigns in raising political awareness and making voters aware of the significance of exercising their vote.

This Division of Revenue Bill is the last Bill of its kind in this Third Parliament. In the next Parliament, the Division of Revenue Bill will be governed by a new National Act of Parliament - the Money Bills Amendment Procedure Bill.

The Division of Revenue Bill is tabled annually on a Budget day and epitomises intergovernmental fiscal relations. Essentially, the Division of Revenue Bill reflects the legal division of revenue between the three spheres of government. The Bill divides revenue horizontally within the provincial and local government spheres. Politically, the Division of Revenue Bill relates to the allocation and division of revenue across government spheres for the purpose of improving service delivery. The collection of revenue and its allocation is determined by policy and political decision-making. The Bill is predominantly a political evaluation and assessment of financial resource allocation. We observe, for example, a nexus between the key provisions of the Division of Revenue Bill and the ANC’s 2009 election manifesto. Key provisions of this Bill, particularly the new conditional grants, provide the legislative means by which key provisions in the ANC’s 2009 election manifesto will be implemented. The new conditional grants include various grants.

The Ilima/Letsema projects grant helps poor farmers to increase production and to adopt modern farming methods. This grant has been allocated R650 million over the Medium-Term Expenditure Framework. It also includes the Overload Control Grant which has been allocated R21 million over the Medium-Term Expenditure Framework for initiatives to reduce overloading practices by trucks on the network; the Sani Pass Road Grant which is receiving R34 million for road infrastructure projects that promote integration and development between South Africa and Lesotho; and the Expanded Public Works Programme incentive grant for municipalities encouraging provinces to increase spending on labour-intensive programmes.

Furthermore, some of the other conditional grants are: the Public Transport Operations Grant which is receiving R11,5 billion over the Medium-Term Expenditure Framework for the subsidisation of commuter bus services; the Technical Secondary Schools Recapitalisation Grant which has been allocated R280 million for equipment and facilities in these schools; the Health Disaster Response (Cholera) Grant is receiving R50 million; and the Housing Disaster Relief Grant is receiving R150 million to respond to natural disasters. The ANC, in its 2009 election manifesto, has identified five priority areas, which are as follows: the creation of decent work and sustainable livelihoods; education; health; rural development, food security and land reform; and the fight against crime and corruption. The improvement in the circumstances of the poor, who are seen as suffering from the legacy of apartheid, is the central thrust of the ANC’s 2009 election manifesto. The reduction of poverty is based on the creation of new jobs. The struggle against poverty remains the central political task of the ANC’s 2009 election manifesto. This Division of Revenue Bill is a vehicle for incrementally achieving the targets laid out in the manifesto, which are politically significant to the successful future of a democratic South Africa.

The Select Committee on Finance calls on the members of the NCOP to endorse the 2009 Division of Revenue Bill. I thank you. [Applause.]

Mr M O ROBERTSON: Chairperson, today, in the debate on the Division of Revenue Bill, I will speak on behalf of my province, the Eastern Cape. I will also talk about matters that have been brought to the attention of the committee and about the division of revenue.

We all know that this is probably the most important Bill passed in the NCOP. The first thing I would like to bring to your attention is that there is a need to develop a clear policy on land disposal as municipalities are more inclined to sell land to private developments than to government. This is affecting the spending of money allocated for housing delivery. The process of accreditation of municipalities must be speeded up. I would like to add that it must be municipalities that have the capacity to deal with this matter.

There is a need for the reconsideration of the local government equitable share formula rather than to base it on the outdated 2001 census. Instead, factors such as the prevalence of poverty and the location level of unemployment and education, among others, must be taken into account. It is proposed that historical backlogs be taken into account so that poor municipalities, especially those from the former homelands, may be assisted to get on par with others. If this is not done, these municipalities will actually never catch up, and they will always be in trouble. It is very important that this is dealt with.

Circumstances specific to each municipality are not taken into account with the Municipal Systems Improvement Grant and the Financial Management Grant allocations. Although the new conditional grants are welcomed, we are of the view that the Overload Control Grant should be brought forward to the 2009-10 financial year, taking into account the infrastructure of our roads.

It is proposed that the Local Government Data Collection Forum referred to on page 71 of the Division of Revenue Act be decentralised to the provinces. Although provinces are welcoming the favourable response from government regarding the Financial and Fiscal Commission submissions, it is proposed that timelines be attached to responses.

In conclusion, I would just like to mention that oversight must be very rigid on the spending of conditional grants. We have had cases in the country and in our provinces where Municipal Infrastructure Grant funds were used to pay salaries of councillors. It is of utmost importance that we are very vigilant as far as the spending of conditional grants is concerned. I thank you. [Applause.]

Ms A N T MCHUNU: Chairperson, the division of revenue that is considering the poor is welcomed if it is going to be used as budgeted for in the areas of allocation. The allocation of an extra R45 billion for provinces towards health, education, roads and rural development is appreciated.

Municipalities have to be assisted with more funding for the Ilima/Letsema projects to plough the fields that are lying fallow in rural areas. Co- operation with local farmers will definitely call for more than the R50 million that has been allocated for Ilima/Letsema projects so that people can be assisted to get out of poverty.

We are all aware of the problems we are experiencing right now in various departments like the Department of Health, where one may actually say that the training of nurses has to be looked at. Rather than leaving it to universities, training must be done at hospitals where nurses will have hands-on training through the nursing of patients at their bedsides. This should be done rather than having nurses being trained privately and paying exorbitant sums of money like R7 200 just to be trained as a nurse who has to make people aware of what is going on with diseases. So, the money we have needs to be used properly. We cannot say the money is not enough. We all have to co-operate in the three spheres of government to assist each other in making sure that the money that has been given is used appropriately.

The IFP and our province support the Bill that is in front of us. I thank you. [Applause.]

Mr E M SOGONI: Chairperson of the NCOP, hon Deputy Minister Nene, comrades and colleagues, the people of South Africa gave the ANC an overwhelming mandate to change their lives through, amongst others, the Budget. The Division of Revenue Bill that we are passing today is, therefore, one major tool that contributes to the creation of a better life. The track record of the ANC government, over the past 15 years, shows the steps that the ANC government has taken to address decades of deprivation and exclusion from the mainstream provision of services. And the people would want the ANC to continue with a programme of ensuring that children in rural areas have the same access to quality education, health, a clean environment, and food security, amongst others, as children in the Western Cape.

Despite the global economic meltdown, this Division of Revenue Bill, informed by the ANC manifesto, addresses itself to decent job creation through, inter alia, a restructured public works programme and public infrastructure. No one in this House can deny that South Africa, today, is a construction site. Construction is taking place at the stadiums, and it is taking place on the roads. It is taking place everywhere.

One matter that drew a lot of attention in the hearings, Deputy Minister, was the issue of incentives for municipalities that exhibit the capacity to create more jobs. These municipalities will receive more from the R4,2 billion earmarked for this process over the Medium-Term Expenditure Framework. This is expecting the Lephalale Municipality in Limpopo, for instance, to compete with Johannesburg Metropolitan. Ordinarily, we all know that the budget of Johannesburg Metropolitan is bigger than most provinces’ and, therefore, comparing the small, rural municipalities with metropolitans is like comparing a cat to an elephant. So, the committee suggested that what needs to be done is to build the capacity of the small, rural municipality in order to create more jobs, and to give an incentive to the municipality to create these jobs. With increased resources in many departments, it will be incumbent upon committees to do vigorous oversight over the departments to ensure that these resources are expended properly. The government has responded positively to disasters by providing a special disaster management grant for swift response to disasters that continue to ravage our country. Emerging farmers or poor people of the Alfred Nzo Municipality, for instance, in the Eastern Cape can’t wait for 20 years for government to respond to disasters. It is not fair. We must pass this Bill so that service delivery can start tomorrow.

I would like to express our sincere gratitude for the co-operation that we received from the officials of departments, especially National Treasury and the Department of Provincial and Local Government. I thank you.

The DEPUTY MINISTER OF FINANCE: Chairperson, the first one was the maiden speech. This one is now the farewell speech. [Laughter.] Once again, let me extend our sincere appreciation to this House and, as I have indicated, particularly to the committee for having dealt with this Bill and now for the support that we have received from this House.

We trust that it is now up to us to ensure its implementation, and I have heard this in speech after speech – everybody has emphasised the importance of making sure that the money that has been allocated is buying what it is meant to buy.

A number of concerns have been raised, and I know most of these concerns are also in the report of the committee, which we take very seriously, and we have indicated that we will take into account most of the issues that have been raised.

One of the issues that was raised by the hon Robinson was the issue of the refusal to accredit the City of Cape Town. The hon member would know that this is a process that needs to be linked to the Department of Provincial and Local Government’s review process on provincial and local government. I would imagine that the member, in her campaign, will also educate the nation on the importance of this process, without necessarily pointing fingers at government.

On the issue of the formula, also, that underestimates populations in metropolitans, two issues need to be taken into account. There have been substantial increases that were made to the local government equitable share allocations, which take into account the increases in service delivery responsibilities that have been assigned to local governments. Regarding the other issue, we require a fair basis for the allocation of required resources from the central source, which currently is Statistics South Africa and no other. I know that hon Robinson also raised the issue of how outdated the statistics are that Statistics South Africa still has on record, which is the 2001 statistics. We take note of that.

On the issue of the Libraries Conditional Grant, we agree that it is a priority. I did indicate in my speech that we have prioritised it, but all we want is that, together, we ensure that funds are spent for this particular purpose.

The Chairperson raised the issue that these allocations will be governed by the new Act of Parliament from now on, which is a constitutional requirement in terms of section 77(3) which has since been passed. We thank Parliament for having asserted its voice and ensuring that we have this piece of legislation. We look forward to its implementation, and we trust that you will all participate and make sure it achieves its intended objectives.

Other than that, Chairperson, I do not want to spoil this beautiful day. I want to take this opportunity, once again, to thank you all for the support and wish you well. [Applause.]

Debate concluded.

Question put: That the Bill be agreed to.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape. Bill accordingly agreed to in accordance with section 65 of the Constitution.

The CHIEF WHIP OF THE COUNCIL: Chairperson, can we please take Order Number Four on the Order Paper just to allow Minister Shiceka to come in. It will take us about five minutes. Definitely, by that time, he will be here. I so move.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Is everyone in agreement with that?

HON MEMBERS: Yes.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): And the DA, are you in agreement?

Mr A WATSON: Chairperson, one must ask the question: Where is the Minister? We all knew about this meeting. Is he now suddenly being uplifted to a status beyond punctuality for a meeting that he is entitled to address?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Hon Watson, I asked if you agree to the question put. Hon Chief Whip, hon Watson does not agree.

Mr A WATSON: Chairperson, if we get a decent response as to where the Minister is, perhaps we can agree. But just to say he is not here, he is late …

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): The hon Chief Whip will answer.

The CHIEF WHIP OF THE COUNCIL: Chairperson, let’s put it to a vote. That’s all.

HON MEMBERS: Yes.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Can we vote? Those who agree sit on the right side of my table. Hon Mzizi. Can I have order in this House please?

Mr M A MZIZI: Chairperson, I think it would be appropriate that we accord the Minister THE time to be here. Let’s continue with other business so that we don’t lose anything. Thank you.

HON MEMBERS: Yes.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): The Minister is running late. We will continue with Order Number Four. [Interjections.] I have spoken, thank you very much. I wish to apologise. We will go back to the Second, Third and Fourth Orders. CONSTITUTION SIXTEENTH AMENDMENT BILL

            (Consideration of Bill and of Report thereon)

                CONSTITUTION SIXTEENTH AMENDMENT BILL

                  (Consideration of Second Report)

CROSS-BOUNDARY MUNICIPALITIES LAWS REPEAL AND REALTED MATTERS AMENDMENT BILL

            (Consideration of Bill and of Report thereon)

The MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Deputy Chairperson, I hope I will be given more time because I have just come home. Therefore, I must be given more special treatment than other Ministers present here. [Laughter.]

Deputy Chairperson; Comrade Enver Surty, the Minister for Justice and Constitutional Development; hon members, comrades and friends, ladies and gentlemen, we are gathered here today to reverse the Constitution Twelfth Amendment Act and replace it with the Constitution Sixteenth Amendment Bill and its accompanying legislative provisions. We are putting a final nail in the coffin that buries unhappiness and protests from the people of Merafong in general and Khutsong in particular. We have reached the crest of the journey of taking the people of Merafong to where they belong. These people were incorporated in the North West province against their will.

The Freedom Charter says that no government can claim legitimacy unless it is based on the will of the people. Today we are coming to reaffirm the principles that have guided the ANC for the past 97 years as a revolutionary and people’s movement. These are the principles that made the ANC the darling of the people of South Africa. It is the only party that has its fingers on the pulse of the people of South Africa. This assertion is evident by the fact that the ANC is the only party in the world that has increased its majority in successive elections. There is no other party that has done so across the world. It is only the ANC. Therefore, this assertion is not going to stop on 22 April 2009; it will continue as before.

The ANC is the party that is viewed by the people of South Africa as their Parliament. This darling of the people of South Africa is the only party that confuses politicians, particularly political commentators and the media. It also baffles opinion-makers and surveys conducted against it. It is unpredictable, particularly to those who are not members of it. This is the secret that has made this party the darling of the South Africans. It is driven by its principles; self and constructive criticism; organisational discipline, democratic centralism; and a people-centred and people-driven approach, to mention a few.

It is these principles that make us come before you, South Africans, and the world today and say sorry to the people of Merafong.

Re entse phoso. [We have made a mistake.]

Lixhoshwa libhekile. [We have made a mistake.]

Let us look back at the reasons for why we are here today.

Ake nginithathe ngamehlo engqondo nginise eMerafong. [Let me paint an imaginary picture of Merafong.]

That municipality was a cross-boundary municipality; 26% of its southern tip fell under the North West, whilst 74% fell under Gauteng. The population of that area is estimated to be approximately 308 237 inhabitants, of whom the majority fall under Gauteng.

When the cross-boundary municipality was done away with, the gold mining belt was established from the East Rand to Johannesburg, linking with the West Rand, which historically included Carltonville, a major town in Merafong. Western Deep Levels is the deepest gold mine in the world. This gold mine is part of Merafong. The mining belt called PWV was created and established because of the discovery of gold. Therefore, the economic, social, historical and transport links were established many, many years ago in that part of the country. There is a train service that goes from Johannesburg to Carltonville and vice versa. It means that the people of Merafong have been part of Gauteng since time immemorial. What it means in essence is that the removal of these people from Gauteng to North West was like ripping off parts of a human body.

As we all know, PWV was a province that preceded Gauteng. Gauteng is a Sotho word which means gold. The discovery of gold included that part of Gauteng which was Merafong, and the deepest gold mine is in Merafong. Therefore, you can’t separate Merafong from Gauteng. Gauteng is part of Merafong, and Merafong is part of Gauteng. It is this logic that made us, the people of this country and the ANC-led government, to say that we have made a mistake.

This mistake was caused by the decision we took in the 1980s that said one city one tax base. Therefore, when we built a new local municipality that had to ensure that it took the whole of Merafong, which included the areas that are liked by Sbali – Kokosi Sbali – and they are part of Merafong. Those parts were part of the North West. We made the mistake of taking the 74% majority to the area of 26% minority. The 26% were the people who stayed in the former North West and 74% have been part of Gauteng since time immemorial. That was the first cardinal mistake we made in dealing with this issue. We also made a mistake because despite their objections and their grief, we took them back and that decision was never accepted by the people of the area. However, they involved themselves in illegal violent protests which were supposed to be condemned because to raise one’s views does not require using extraordinary means of violence. Express your views and government must be able to listen.

We say, today, that era is past, it is gone and this is the second last leg to ensure that the matter is resolved. Once the Bill is passed, it will be sent to the President for his assent. On 22 April 2009, I will vote in Merafong. I will welcome the people of Merafong back to Gauteng. I will be in Khutsong to cast my vote on that day, because the people of that area will then be part of Gauteng.

We have also established a transitional committee composed of different spheres of government led by my department. The transitional committee will be dealing with overseeing the reincorporation and reconstruction and development of the Merafong area. The business sector, particularly the mining houses, has come forward. They want to contribute to the party. They want to release the land and contribute financially to ensure the development of that area. The area has the deepest gold mine in the world, therefore it cannot afford to be poor. As a department we are ensuring that this matter is addressed.

We also have other challenging areas. Regarding the area of Moutse, we will be taking a decision soon, within the next two weeks, to come up with a conclusion in terms of what will happen in that area. Where the area of Matatiele is concerned, we will also take a decision around it which will be underpinned by the interest of the people, because we believe that if this ANC government is rooted in the people it will always be in power. Maybe it will be out of power when the son of someone comes back to this country. That will be the only time when it will not be in power.

The matter of handling the issues of cross-boundary municipalities is something that must be done because we believe that this is a sideshow. Our focus must be on service delivery, development and on improving the quality of lives of our people. And we are going to do that without fear, favour or prejudice. That’s what we are going to do. And I want to say in this august House that I appreciate the fact that for the past four years I’ve worked with wonderful people, including the leadership of the Deputy Chair and the Chairperson. We appreciate it. I am the son of the soil in this House. The strength and the wisdom that you have given me will allow me to conduct my tasks and my responsibility in a way that will make you proud when you look at it.

I want to thank the committee that I worked with, which we called the Mokoena detachment. If you look at the clusters in this House, this detachment has managed to raise the bar; even in times of debates it was a committee that did very well. I felt privileged and honoured to be part of the Mokoena detachment. So please, Mokoena, continue with the detachment; it did very well. It shaped and chiselled us to be what we are today.

I also want to thank the committees of the National Assembly for conducting this work because when the Bill was introduced – when the concept was conceived – nobody, including some of my colleagues in Cabinet, believed that it could be done. Today, it was proved that it can be done. I must also thank Minister Surty for his co-operation, because we worked very well on this task, as well as the select committee led by “uSbali” uBhuti Mkhaliphi for doing this work so well. We really appreciate your contribution. As much as I need to thank the Chief Whip and the leadership of the institution for the way they have managed to assist us in conducting this work and developing it, I need to thank my department and my office, led by Ntlaks Nkondwane. That team doesn’t sleep; it works until the morning. I feel proud to be associated with hardworking men and women of such calibre. This country will be taken to another level if they continue to do so. [Applause.]

I also want to thank my family for allowing me to do what I am doing by giving me the support, which is important in terms of discharging one’s responsibilities. We hope, in going forward, that the NCOP will always make us proud.

However, you must know, the issue of your future is on my table. The future of provinces is in my desk drawer with regard to looking at whether or not provinces, as spheres of government, need to remain. Sometimes when I touch that document I get very scared because it is quite fundamental and serious. Therefore, when you see me you must smile at all times, otherwise your future will be determined. [Laughter.] Thank you very much. [Applause.]

Kgoshi M L MOKOENA: Chairperson, colleagues, hon members, comrades and friends, let me start off by saying thank you to the Minister for explaining and taking us through the Bill and for telling us what led to this Bill being brought back to Parliament.

Public hearings were conducted in the areas of Merafong in the year 2005 to get the views of the people concerned. Let me boldly say that the current Minister for Provincial and Local Government, hon Sicelo Shiceka, was very vocal in advising Parliament that it was wrong to incorporate Merafong into the North West. Unfortunately, his views were ignored. The committee also raised some concerns on this issue, but unfortunately the powers that be didn’t want to listen then. Thank you very much, hon Minister, for progressively addressing this issue.

In the two Bills, we are reversing the mistake that was made in 2005, where the two districts of Kenneth Kaunda and West Rand were placed under North West against the will of the people. In these two Bills, we are redetermining the geographical areas of the provinces of Gauteng and North West. All the areas under the above municipalities will be reincorporated into Gauteng province.

After some serious discussions, the committee decided to join our colleagues in provinces when they conducted public hearings. In this very affected area of Khutsong in Merafong, we were informed by our colleague, the hon Mzizi, that attendance was very good. We were informed that all structures in the area were with one voice saying “yes” to Gauteng and “no” to North West. After going through all the mandates from the nine provinces, the committee agreed that Khutsong in Merafong and the two districts I mentioned must be reincorporated into Gauteng.

In any conflict there are always two opposing views. This was the same in Khutsong. The name Khutsong means a place where there is peace. But during the time of the conflicts, unfortunately, there was no peace there. On behalf of the committee, I want to thank the hon Mzizi for the role he played in making sure that all the necessary logistics and dynamics in our committee were in place. Thanks very much, “Baba” Mzizi. You are one of the best shining examples in our committee. You put the interest of the country first and not that of your party. Thank you very much, hon member.

People opposed the views held by the majority in the area. Some of these people were attacked and many of them were even exiled. Councillors couldn’t work in the area. I want to appeal to the leadership in the area to try and call some meetings to reconcile the opposing groups there. In any democracy, it is not possible for people to think the same way. If need be, some of us won’t mind if you call prayer meetings or prayer days. We need to reconstruct Khutsong. If I had my way, I would rename the municipality after the Minister because of the role he played in the area. That would be part of saying “thank you” to you, Minister, for being such a dynamic Minister.

To all the people of Khutsong, please give our officials a chance to develop your area. We are all aware that service delivery was hampered because of these disputes. Of course, my colleague Comrade Chris Ntuli will deal with this matter decisively. Let me say in passing it is true that the department assured us they would do everything in their power to ensure that service delivery in the area is not hampered. As you are aware, the budget that is supposed to service the area is still under North West. The department promised that, through the transitional committee, nothing will fall through the cracks.

The last time I checked, South Africa was a unitary state. I know Comrade Moseki will give us “a briefing” on the subject. But at the same time what should occupy our minds is whether the areas in which we are staying are developed and not the question of where we are located. There are still some people who want to be placed in one province or the other. The question is how the department is going to deal with these conflicts in the future. Of course I am not best qualified to deal with this matter. It is only the hon Mkhaliphi who can do this decisively. This is all I can say on this subject.

This being our last sitting, on behalf of the committee, I would like to thank our leadership in this council for their support. We wouldn’t be such a dynamic committee if it was not for the support of our leadership in this council. To date, as a committee, we have had 163 meetings since 2004. In those meetings we were able to pass 45 pieces of legislation. We were able to put through this House 25 international agreements. All this was possible because of the support we had from our leadership. Chairperson, this was possible because you gave us this support.

Apart from a few, we also got co-operation from our Ministers in this cluster. I was fortunate to chair this committee that consists of such selfless, hardworking, dedicated, understanding, decisive, intelligent, sharp, cool, always alert, wonderful, magnificent, excellent, evergreen, calculated and dynamic members. I am still humbled by the respect and co- operation I received from these members who serve on this committee. It’s true that history remembers us not by our looks, but by the work we have done. Our motto as a committee has been “don’t put away for tomorrow what you can do today”. We have been doing this because we are aware that the full use of today is the best preparation for tomorrow. One other reason why we took this direction is because we knew that it is not the hours that one puts in that count, but what one puts into those hours.

Finally, to you colleagues, I want to wish you all the best in your future endeavours. You are an asset to this committee, the NCOP and our country, and not a liability. Hon members, please support us when we deliver the people of Khutsong back to where they belong – Gauteng. Let’s support both Bills.

Modulasetulo, ga ke nyake go hlwa kgorong. Go ja kudu ga se go ntšha tlala. Ka gona e re ke re, diphala tša mona marula di a tloga. A re thekgeng Melaokakanywa ye mebedi ye. Ke a leboga. [Chairperson, I do not want to waste time. May I therefore say that it is time for me to wrap up. Let us support these two Bills. I thank you.]

Mr D A WORTH: Chairperson, Ministers present and hon members, the Constitution Twelfth Amendment Act of 2005 and the Cross-boundary Municipalities Laws Repeal and Related Matters Act 2005 provided for transitional arrangements to ensure a smooth transition from the cross- boundary municipal dispensation to where a municipality would only be located in one particular province.

One of the consequences of the Constitution Twelfth Amendment Act and the Cross-boundary Laws Repeal Act was that Merafong cross- boundary municipality was incorporated into the North West province in its entirety and became part of the then Southern District Municipality. I quote from the Bill itself:

Due to opposition by the residents of Merafong City Local Municipality, and in particular the residents of Khutsong, against their incorporation into the North West province, the government …

(read as ANC)

… has now decided that Merafong City Local Municipality must be reincorporated into the Gauteng province.

The ANC is merely playing musical chairs with these Bills. [Laughter.] The opposition, including the then chairperson of the local government committee who is now the Minister for Provincial and Local Government, was against the incorporation of Khutsong into the North West province right from the start. This was obviously against the wishes of the majority of the people, which then led to riots and civil unrest, causing great damage.

However, all the opposition’s protests were ignored, and in the debate in this very House I was told that my perceptions - What is a perception; are you talking as a third person, what is your perception? - were wrong and the overwhelming consensus of the so-called public hearings were in favour of incorporation into the North West province. Where were these public hearings? What public hearings? They must have been cooked up public hearings.

Exactly the same fiasco happened with the incorporation of Matatiele from the Eastern Cape province into KwaZulu-Natal where the appeal court then upheld and found that insufficient or no public hearings - note, no public hearings - had been held, and that the people had not been properly consulted. But here we have the ANC apologising “We made a mistake.” This is the first time I have ever heard an ANC Minister publicly admitting that he made a mistake. We are going to have snow here on Table Mountain one of these days.

One of the objects of incorporating Merafong into the North West province was to balance the number of persons transferred from the North West province to the Northern Cape province, to ensure that the opposition will never gain control of the Northern Cape. [Interjections.] If you go down in the woods today, you are in for a big surprise. Through submissions received, it is apparent now that the residents … [Interjections.]

Rev P MOATSHE: Chairperson, I just want to say, while the member is so emotional, is he saying that the Minister is taking it away … He is so emotional.

Mr D A WORTH: That is not a point of order!

Rev P MOATSHE: It is a point of order!

Mr D A WORTH: Through submissions received it is apparent that the residents of Khutsong and Carltonville, who make up 20 municipal wards and more than plus-minus 300 000 inhabitants of the total municipality, are in favour of reincorporation into Gauteng province. However, Fochville, Kokosi, Green Park and Wedela, consisting of six wards, totalling plus- minus 75 000 inhabitants, wish to remain in the North West province. In the committee we explored the possibility of establishing two municipalities to try and accommodate everyone, one of six wards remaining in the North West province and the other 20 wards to be incorporated into Gauteng province. The ANC members and officials did not want to consider this proposal seriously because of all the legal and practical implications.

An amendment is required to the Constitution in order to give effect to the change in provincial boundaries. Not only this, but the provincial equitable share will have to be adjusted as well as any intergovernmental transfer such as the Municipal Infrastructure Grant, Municipal System Improvement Grant, the cost of the inputs by the Municipal Demarcation Board, the cost of the public hearings, etc. Hospitals and clinics will have to be retransferred back to the provinces they came from. What this fiasco has cost the South African taxpayer, heaven knows, but then the ANC does not worry about such trifling matters.

In promoting this fundamental example which demonstrates that the will of the people and consistency in respect of the redemarcation of municipal boundaries must prevail, the fact that the majority wish to go back there and that it’s a substantial minority who do not wish to go back, the DA will therefore abstain from voting on this Bill. I thank you. [Applause.]

Mr Z C NTULI: Chairperson, hon members, hon Ministers, Minister for Provincial and Local Government, Minister for Justice and Constitutional Development, comrades and friends, this debate should reflect that section 103 of the Constitution of the Republic of South Africa recognises the boundaries of the nine provinces of South Africa. In order to alter a provincial boundary, a constitutional amendment must be enacted. The Constitution Sixteenth Amendment Bill seeks to alter the provincial boundaries of the North West and Gauteng provinces in order to reincorporate the Merafong City Local Municipality into the province of Gauteng.

The Cross-boundary Municipalities Laws Repeal and Related Matters Act of 2005 is also amended to facilitate the redemarcation of the Merafong municipality and other affected areas. I was surprised when hon Darryl Worth was talking like that, because the DA did not attend the briefings when we were briefed about the reincorporation of Merafong into Gauteng. They were not there. They just disappeared. And I wonder, because the Minister has apologised, and our chairperson, Kgoshi, has apologised for what happened, but he continues.

What he must know is that when we were conducting the public hearings, we were not conducting referendums. The member wants to imitate hon Thetjeng who is no longer here. Maybe he wants to follow him. [Laughter.] [Interjections.]

Mr Z C NTULI: Sihlalo, angifuni ukukhuluma ukuthi uyephi. Laphaya eMerafong sinethimba elikhethiwe … [Chairperson, I do not want to say where he went to. In Merafong we have appointed a team …]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Is that a point of order, hon Tau?

Mr R J TAU: Chairperson, I just wanted to check whether the hon member is saying that hon Thetjeng could not cope with the DA?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms P M Hollander): Hon Ntuli, you may continue. That is not a point of order.

Mnu Z C NTULI: Bengisathi lapha kunethimba lochwepheshe elisungulelwe ukubona nokwenza ukuthi umasipala waseMerafong udlulela kahle esiFundazweni saseGauteng. Siyakubonga lokhu okwenzile Ngqongqoshe. Leli thimba libalulekile ngoba yilona elizobheka imininingwane yonke kanye nokususwa kwazo zonke izihibe uma kuqhutshekwa kuyiwa phambili.

Leli thimba lizosebenzisana kakhulu nohulumeni wasekhaya e-NCOP. Phela Sihlalo, sikubekile embikweni wekomodi lethu ukuthi ikomidi elisha leNCOP likahulumeni wasekhaya kufanele libe seduzane kwaleya ndawo ukuze kube ngamagama enkehli. Okusho ukuthi abaphat hi (oversight) kuyofanele ukuthi ikomidi elizoba khona lePhalamende yesine liye njalo laphaya ukuze libone ukuthi izinto zihamba kahle yini. Siyojabula futhi Ngqongqoshe uma ungashesha uwasho amagama, usho nokuthi ngobani labo chwepheshe ukuze sikwazi ukukhuluma nabo ngqo ukuthi bayilungisa kanjani le ndaba.

Njengoba kuvela ukuthi isabiwomali sika 2009-10 sesenziwe angeke sisakwazi ukusishintsha, sesiyoze sishintshwe ngonyaka wesabiwomali sika2010-11. Okusho ukuthi isabelo sabantu baseMerafong sihamba nabo sisuka eNorth West siya eGauteng. Okusho ukuthi lokho ebesebenikwe kona kofuneka imiNyango yenze ngqo ukuthi lezo zimali zayo ziyasetshenziswa uma sebeseGauteng uhulumeni waseNorth West.

Kulokhu-ke kufuneka iziphathimandla zazo zombili lezi zifundazwe okuyiNorth West neGauteng ziqaphele ngamehlo okhozi. Lokhu kumele kwenzeke kusukela phezulu kuNdunankulu kuze kuyofika ezisebenzini zoMnyango yohulumeni bobabili. Ngineqiniso ukuthi lokhu kuzokwenzeka ngoba zombili lezi zifundazwe zizobe zisaphethwe nguhulumeni kaKhongolose, uhulumeni wabantu. Siyazi futhi ukuthi unyaka wezimali womasipala uzoqala ngoJuni kuyoba kuhle ukuthi yonke imininingwane kanye nokulethwa kwezinsiza, imali kufanele ibekhona kumasipala lo abantu baseMerafong abazobe bengaphansi kwakhe i- West Rand District municipality. Siyazi ukuthi labo hulumeni bobabili bazobe besaphethwe uKhongolose okusho ukuthi abantu baseMerafong bayaqinisekiswa ukuthi ukulethwa kwezinsiza kuzobekwenziwa futhi zizotholakala. Ngalokhu esengikubekile ngenhla ngithi-ke le Ndlu ayiwusekele lo mthethosivivinyo siqhubeke siyephambili. Ngiyabonga. (Translation of isiZulu paragraphs follows.)

[Mr Z C NTULI: I was saying that there is a team of experts who was appointed to oversee the smooth transition of the Merafong Municipality into Gauteng province. Hon Minister, we are grateful for what you have done. This team is very important because it will look into every detail and do away with all of the existing obstacles that might stand in the way of progress.

This team will mainly work with the department of cooperative governance and traditional affairs in the NCOP. Mind you Chairperson, we have stated in our report that the new Select Committee on Co-operative Governance and Traditional Affairs must be closer to that place so that everything will go according to our plan. This means that the forthcoming select committee of the Fourth Parliament must always visit that place to oversee if everything is going according to plan. We would be pleased, hon Minister, if you could quickly mention those names and tell us who these experts are so that we can directly talk to them to understand how they hope to rectify this situation.

As has emerged, the budget for the 2009-10 financial year has already been allocated, and we know that we cannot adjust it; it will be adjusted in the budget for the 2010-11 financial year. Therefore, this means that the allocation for the people of Merafong will go with them from the North West province into Gauteng. This means that the departments must ensure that the funds which were allocated to them are utilised when they are in Gauteng.

In this instance, delegated authorities from both the North West province and Gauteng need to be very vigilant. This synergy must start from the level of both the Premiers and cascade down to the level of officials in both departments of co-operative governance and traditional affairs. I am certain that this will be possible because both provinces would still be governed by the ANC-led government - the government of the people.

We know that the municipal financial year will begin in June and it would be appropriate if all the necessary details, as well as service delivery issues, are catered for in the budget of the West Rand District Municipality under which the Merafong Municipality falls. We are certain that both these provinces would still be governed by the ANC which means that the people of Merafong are guaranteed that services would be delivered. With what I have said above, I am therefore urging this House to support this Bill so that we can move forward. Thank you.]

Ms M G VANTURA (Western Cape): Deputy Chairperson, we are all aware of the background to the circumstances which brought us here today to discuss the Constitution Sixteenth Amendment Bill.

Some will argue that it is the fault of government for not listening to the people, but it is, according to me, the complete opposite. The ANC government has listened to the people and will always do so. It will try to make the lives of the people of South Africa better than it was yesterday as well as to make tomorrow better than today. And so, it was for that reason that we had a situation where the proposed improvements for service delivery were rejected by a community and the re-organisation of service delivery were seen, wrongly so, as a threat to service delivery.

It is extremely regrettable that destruction to infrastructure took place. Community property was destroyed; education was disrupted; and valuable learning time was lost. The matric students, with the support of the Department of Education, made tremendous effort against all odds. They did well and I salute them.

It will take time to rebuild the area, not only schools and libraries, but also a spirit of learning and returning to a sense of normality. The people must once again respect and take care of the institutions that define it. The libraries and schools should once again be the pride and joy of the community. They should not be used as sites of protest and anger.

Let me also put on record that this is not done for election purposes. This has been a long time coming. We know that Khutsong is an ANC stronghold. People would rather not vote than to vote for any other party. It is a pity that this process has taken so long and cost so much. Public protest must be bound by the processes we have institutionalised in our society. There are avenues for protest built into the design of our Constitution and society. Perhaps we’ve failed in implementing these systems. Having said that, wonderful and valuable lessons have been learned, the most important of which is a reminder that the definition of democracy is “government by the people for the people” and that the will of the people must be respected at all times. The ANC, therefore, calls on all of us to work together to do more to change the lives of our people. We are proud of our election call which says “Working together we can do more”.

Lastly, Minister, I would like to apologise because I will leave before the end of the debate as I have been deployed to attend the funeral of a comrade. So I do apologise, but my colleague, hon Mack, will inform me of what took place afterwards. I thank you.

Cllr B MOLOI (Salga): Deputy Chairperson, hon Minister for Provincial and Local Government, hon Minister Enver Surty, hon members of the NCOP and special delegates. Good morning.

Ladies, gentlemen and hon members, I must say that the SA Local Government Association, Salga, representing 283 municipalities in South Africa, welcomes this opportunity to address this august House on the occasion of passing into law the Constitution Sixteenth Amendment Bill of 2009. This important piece of legislation paves the way for the reincorporation of one of our member municipalities, which is Merafong City Local Municipality, from the North West province into Gauteng.

In 2002, the Presidential Co-ordinating Council resolved that no municipality should straddle across provincial boundaries. This, effectively, meant that the boundaries of all cross-boundary municipalities had to be reviewed to ensure that they, indeed, fall within one or the other province, but not both – it couldn’t be both. In implementing this decision, the Minister for Provincial and Local Government introduced legislation to redetermine the boundaries of certain municipalities and, likewise, the Minister for Justice and Constitutional Development introduced legislation to redetermine provincial boundaries. As a result the following municipalities and provinces were affected: Umzimkhulu Local Municipality; Sisonke District Municipality; Alfred Nzo District Municipality; Umzimvubu Local Municipality; Matatiele Local Municipality; Bushbuckridge Local Municipality; Ehlanzeni District Municipality; Maruleng Local Municipality; Mopani District Municipality; Merafong City Local Municipality; Southern District Municipality, which is now called Dr Kenneth Kaunda District Municipality; the West Rand District Municipality; Metsweding District Municipality; and Ekungwini Local Municipality.

The affected provinces are: KwaZulu-Natal, Mpumalanga, Limpopo, North West and Gauteng. Accordingly, amongst others, Merafong City Local Municipality was incorporated into the North West province in its entirety and became part of the Southern District Municipality which is now Dr Kenneth Kaunda District Municipality. A proposal subsequently surfaced and was approved by the Cabinet for the redemarcation of the boundaries of the Dr Kenneth Kaunda District Municipality to the extent that Merafong City Local Municipality is to be reincorporated into the West Rand District Municipality.

The process of moving Merafong City Local Municipality from the Dr Kenneth Kaunda District Municipality of the North West province to the West Rand District Municipality of Gauteng province has several municipal and provincial boundary implications. The boundary of Dr the Kenneth Kaunda District Municipality will, henceforth, be reduced in that Merafong City Local Municipality will no longer form part thereof. Subsequently, the boundary of the West Rand Local Municipality will, obviously, expand in such a way that Merafong City Local Municipality will be incorporated into its jurisdiction. In view of the fact that the two district municipalities fall within two different provinces, this will, obviously and effectively, give rise to changes in the boundaries of the North West and Gauteng provinces alike.

The Minister for Provincial and Local Government introduced the Cross- boundary Municipalities Law Repeals and Related Matters Amendment Bill, which seeks to provide a legislative framework for the redetermination of the municipal boundaries, and the Minister for Justice and Constitutional Development introduced the Constitution Sixteenth Amendment Bill for the redetermination of the provincial boundaries.

In fulfilling its constitutional mandate, Salga consulted widely on the proposed legislation by circulating the Bill to the relevant local municipalities. A meeting was subsequently convened with the executive mayors, Speakers and municipal managers of the respective municipalities on 8 January 2009 to consider fully the implications of the proposed legislation. The outcome of that meeting indicated overwhelming support for both Bills. Concerns have, however, been raised with regard to the implementation date, transitional arrangements and the financial implications relating to both the Cross-boundary Municipalities Laws Repeal and Related Matters Amendment Bill and the Constitution Sixteenth Amendment Bill.

A number of functions are currently being provided for by the Merafong City on an agency basis for the North West provincial government. These include library services and vehicle licences and, similarly, the provision of health services has been driven at local level, while this arrangement is actually substantially different in Gauteng province. The final implementation date should, amongst others, allow sufficient time to put the appropriate structures and systems in place to ensure a smooth transfer and transition from the North West province to Gauteng province.

We have learnt some lessons in the 2005-06 redemarcation process, and central to this is the agreement reached on the implementation protocol to be entered into between the receiving and the releasing province. In addition, to ensure that the necessary implementation protocol is duly agreed upon and entered into between the North West and Gauteng provinces before the implementation date, it will be critically important that structures at both the technical and political levels are established to facilitate this transition further, with Parliament and, in particular, this select committee playing the general oversight role. Local government must be directly represented as a number of functions that are subject to the transfer are performed at local government level. And, for that matter, the central and overriding purpose would be to ensure a seamless transition and uninterrupted service delivery in respect of those functions and services that will be directly affected by this exercise. This process of reincorporating Merafong City Local Municipality, from the Dr Kenneth Kaunda District Municipality which is in the North West province, into the West Rand District Municipality, which is in Gauteng province, will have serious planning and consequent financial implications for all three municipalities as well as the two affected provinces.

From a planning point of view, I must indicate that various high-level considerations are evident. The receiving municipality, which is the West Rand District Municipality, will have to, obviously, amend its integrated development plan, IDP, to incorporate planning for the Merafong City Local Municipality.

Similarly, the receiving province, which is Gauteng, would have to amend its provincial plan to incorporate development for the Merafong City Local Municipality. The provision of services by the Merafong City Local Municipality on an agency basis on behalf of the Gauteng provincial government and planning on certain specific matters will also required, for example, a review of the municipal IDP.

In conclusion, as Salga, we are fully supportive of this proposed Bill and eagerly awaiting the roll-out of the oversight role of this committee over the implementation process, subsequent to the promulgation of this legislation. I would like to take this opportunity to thank this august House for giving us the opportunity to present it here. I thank you. [Applause.]

The HOUSE CHAIRPERSON (Mr T S Setona): Hon members, I was lenient because the hon member is from the South African Local Government Association, Salga. So, we want to entice them with incentives to be more active.

Mr M A MZIZI: Sihlalo, noNgqongqoshe bobabili ngithi okumhlophe kodwa. [Chairperson and both Ministers, I wish you all the best.]

Chairperson, these two Bills before us intend to give effect to the decision taken by government to reincorporate the Merafong City Local Municipality into Gauteng province.

In 2005, when government decided, after reviewing the municipal demarcation, to incorporate Khutsong and its municipality of Merafong into the North West, the IFP was vehemently opposed to this move. This was a wasteful and fruitless exercise and the ANC government met with absolute resistance that actually caused the people of Merafong to be violent.

Similarly, the IFP has condemned the intention of the ruling party to go ahead with the implementation of demarcation legislation with regard to Matatiele, despite the opposition and the wishes of the majority of the people in Matatiele. The IFP has at relevant times stood together with the people of Merafong City, and in particular the area of Khutsong. We therefore give unconditional support to the reincorporation of Khutsong into Gauteng. The question is, however, whether this government has learnt a lesson from it.

The controversy around Merafong and other remaining boundaries stresses the importance of public participation. Many people often confuse public participation with public hearings. The principle of public participation holds that those who are affected by decisions have a right to be involved in the decision-making process. Public participation implies that public contribution will influence the decision. Had the public participation been done prior, the emergence of violence and unrest in Khutsong would have been averted, but now a lot of damage to infrastructure and properties has already been done.

The real question in the eyes of the public is whether the reincorporation of Merafong into Gauteng province would have been possible without the violent protests. Is it because, for about four years since the incorporation, Khutsong has became synonymous with violent protests such as burning tyres, torching homes and breaking traffic lights. What is the message that this government is sending to the people out there in desperate communities? Is it that if people wanted their issues to be on the national map or immediately addressed, they must resort to violence? The reincorporation of other remaining boundaries, such as Matatiele, needs to expedited because familiarity breeds contempt.

Angisho nje ukuthi nomthandazo uyasho uthi: ngithethelele ngoba nami ngiyabathethelela abangonayo. [Let me tell you that even the prayer says: Forgive me as I forgive those who trespass against me.]

There was nothing wrong when the Minister stood up and asked for the people of Khutsong to forgive us for the mistake that was made. I would have stood up if he had said that the ANC is sorry and I would have said that he must take my speech as read. But because he said “We are sorry”, it means that he was doing it for all of us even though we actually did not agree with that decision.

Asimemukele uNgqongqoshe uma ethi ucela uxolo. Kuhle lokho. [Let us accept the Minister’s apology. That is good.]

Forgive us.

The HOUSE CHAIRPERSON (Mr T S Setona): Hon member, your time has expired. [Interjections.]

Mnu M A MZIZI: Hawu! Nanamhlanje lo mama udodi bengithi singabangane. [Ihlombe.] [Alas! Even today this woman is still evil; I thought we were friends. [Laughter.]]

Ms R S LETWABA (Gauteng): Chairperson, may I address the House while I am seated? Chairperson, hon Minister for Provincial and Local Government, Sicelo Shiceka, in his absence, hon Minister Surty and the House at large, I thank you for the opportunity. I am rising to this debate with all the respect I can muster.

The decision of the Gauteng Provincial Legislature to support the Constitution Sixteenth Amendment Bill of which the main objective and purpose is to give effect to the decision to reincorporate Merafong City Local Municipality into Gauteng translates, actualises and demonstrates our commitment to the Constitution of the Republic of South Africa.

Public participation lies at the centre of our democracy. Parliamentary and government decisions should reflect the will of the people. A free South Africa must therefore ensure that parliamentary decisions do not become a source of division or conflict.

Residents of Merafong, which includes Khutsong township, have in the past taken to the streets in protest against the 2005 decision of incorporating Merafong into the North West province. Their contention was the perceived perception that their standard of living would plummet under the North West province. The fact of the matter is that the people of Merafong regard themselves as an inseparable part of Gauteng. Their position is informed by the socioeconomic fibre linkages between their municipal area of jurisdiction and the Gauteng province.

While we agree with the struggles of the people of Merafong, we are cognisant of our responsibility to restore law and order. Restoration of peace will require a concerted effort by all, including civic associations, trade unions and other independent bodies. On the other hand, I want to stress to you, Chairperson, that we are mindful of the constitutional principles of a democratic South Africa, which envisages that provinces or regions should not be devised as a means of perpetuating privilege. Central government has a responsibility of seeing to it that all areas of the country have equitable access to natural resources and opportunities. Similarly, when we speak of a united South Africa, we speak of a society united behind one national identity. The Merafong cross-boundary dispute has sparked tensions, but it has also allowed us as public representatives to remind ourselves of the slogan used by the ANC in the late 1980s and early 1990s which was “one person one vote in a unitary state”. This was a simple statement of mass democracy.

In the 1980s the Khutsong protests were not foreseen or anticipated. Surprisingly, the slogan is as relevant today as it was then. The right to vote in a unitary state is a right that cannot be defined or determined by a provincial boundary. This applies to the people of Moutse or Matatiele - we must encourage them to vote. We are not a federal state. We are tasked with the responsibility of promoting national unity.

The urban-rural balance is another consideration which requires that provinces with a rural bias must be on equal footing with provinces with an urban bias, particularly in terms of opportunities. We cannot sit here and be boastful of Gauteng and condemn the North West province. What we need to do is to expand opportunities to all South Africans, irrespective of provincial boundary lines. We must, as legislatures and as Parliament, ensure that we enable communities to access services. We also need to promote the dignity and equality of all South Africans irrespective of where they are.

Spheres of government are distinctive in that they are interdependent and interrelated. It is important to develop co-ordinated implementation programmes that will enable the receiving municipality and Gauteng province to achieve the intended objective of the Bill. The end result, which is what we are fighting for, is the restoration of national pride in the whole Merafong community. As Gauteng we support the Bill. I thank you.

Rre A J L MOSEKI: Modulasetulo, badirammogo, Tona Rre Enver Surty, Tona Rre Shiceka, yo o tsamaileng fa a fetsa go bua le rona, fa nkabo ke le kwa kgotleng ke ne ke tla re ke la me leo. Fela go botlhokwa ka gore … (Translation of Setswana paragraph follows.)

[Mr A J L MOSEKI: Chairperson, colleagues, Minister Enver Surty, Minister Shiceka, who left after delivering his speech, if I was in the council I would have seconded but it is important because …]

… we also represent the North West province. North West, as a progressive province, is better than other provinces and supports the passing of this legislation. We do that because we understand the importance of the development of our people in this country. The second thing is that we understand that South Africa is a unitary state.

Go nna kwa Gauteng, Bokone Bophirima kgotsa Limpopo ga go kae sepe. [It does not matter whether you live in Gauteng, the North West or Limpopo.]

The bottom line is that we are all citizens of this country. The development brought by government to communities is intended to improve the lives of all South Africans.

North West is negatively affected by cross-boundary municipalities and has lost a number of areas such as Kgalagadi, Phokwane, Mabopane, Ga-Rankuwa, Temba and now Merafong to other provinces. We never protested and are not going to do so.

Go sa ntse go na le morafe wa GaMothibi o o batlang go tswa kwa Bokone Bophirima o ye felogongwe. Ke batla go kopa gore puso e matlafatse lenaane la thuto ya setšhaba gore re nne le bokao bo le bongwe ba gore Aforika Borwa ke eng. (Translation of Setswana paragraph follows.)

[There is still the community of GaMothibi who wants to move from the North West and be incorporated somewhere else. I would like to urge government to improve its programme of educating the nation so that we can all have a common understanding of what South Africa is.]

Firstly, we appeal that citizens at the lower level must have the same understanding as other citizens at other levels about what South Africa is and what it means to be a citizen of this country.

Our second appeal is in respect of what the South African Local Government Association said in terms of revenue, economic space and equity shares. North West is losing a lot in this regard. We want to urge the Minister and Cabinet to speed up the process of the review and consolidation of provinces. It is our view that if we don’t do that speedily the caucus problems we have regarding Matatiele and other areas are going to continue. If you review a number of provinces in the country and consolidate them to a manageable number, you will have a permanent solution to our problems.

Another important thing we want to say, as members of the ANC having said what the North West would have wanted to say, is that the ANC-led government is a caring government. Our people must understand that if this government was not a caring government, it would not have reconsidered what the people of Merafong have been saying. It should be understood by Mr Worth and others that, being the caring organisation that we are, after realising that some of the decisions taken in the past are no longer fulfilling the interests of our people, we reviewed them and decided to address the will of our people. That shows how caring the ANC is. It is not because the DA or IFP have said something, but because we are a caring organisation.

We also want to mention this for other parties to understand that we are doing these things in the spirit of good governance. We are mindful of the fact that if people are not satisfied, there is no way that there can be good governance in this country. As a caring organisation, we want to ensure that there is good governance at all levels.

We see the need for the people of Merafong to be part of that good governance. We want them to be happy. We want the people of Merafong to enjoy the warmth of the ANC and to enjoy the love of the ANC. We are happy that we listened to the people of Merafong in the public hearings, speaking with one voice, saying that they’d want to be relocated to Gauteng. Therefore, the ANC supports the passing of this Bill. Thank you. [Applause.]

Mr B J MKHALIPHI: Chairperson, we welcome our two hon Ministers to this House. How befitting it is to be in this House in this last sitting.

The Cross-boundary Municipalities Laws Repeal and Related Matters Amendment Bill provides for the administrative procedures and processes in the redemarcation of boundaries between the district municipalities of Dr Kenneth Kaunda in the North West province and the West Rand in the Gauteng province. This Bill goes with the Constitution Sixteenth Amendment Bill so that, when read together, these Bills have the effect of reincorporating the Merafong City Local Municipality into the Gauteng province. The principal Act, that is the Cross-boundary Municipalities Laws Repeal and Related Matters Amendment Act of 2005, and of course its twin, the Constitution Twelfth Amendment Act of 2005, are amended by these Bills.

If we reflect briefly on clauses 4 to 7 of the Bill under discussion, we will realise that it makes provision for the amendment of the statutory notices by the relevant MECs for local government in terms of section 12 and section 17 of the Local Government: Municipal Structures Act, as well as for the schedules stipulating the changes in expressions of the affected districts and localities identified on the relevant maps. Clause 9 of the Bill makes provision for the voting district of the Merafong City Local Municipality to be part of the Gauteng segment on the voters’ roll in order to comply with the stipulations of section 24 of the Electoral Act of 1998.

Also, looking at clause 10(2) of the Bill, clause 9 deems to have come into operation on the day the 2009 election was proclaimed in the Electoral Act. In essence, it says that when the President proclaims this year’s elections, we will consider this Bill to have been in place by then. Unlike other pieces of legislation, which come into effect on a date proclaimed by the President, this Bill takes effect on the same date as the start of the Constitution Sixteenth Amendment Act of 2005, hence we say that these Bills should be read together.

During our deliberations on this Bill, National Treasury highlighted that the budget allocations for the Merafong City Local Municipality will continue to be disbursed by the North West provincial government until the end of the 2009-10 financial year. We were then also informed that the Department for Provincial and Local Government was establishing an interdepartmental transitional committee with clear timeframes and protocols to ensure the smooth and effective management of the changeover. We further discussed how we should be dealing with such boundary changes in future. This is a work in progress, but there are some suggestions which make some sense constitutionally, as put forward by the demarcation board.

In terms of section 103(2) of the Constitution we can make a once-off amendment to that section of the Constitution to make provisions for any change in the boundaries of municipalities to be dealt with in terms of the relevant legislation, without going for constitutional amendments. This is the issue that will be taken forward by the next Parliament, the Fourth Parliament.

In conclusion, our roles as respective legislatures is that of regular oversight on these processes, bearing in mind the previous hurdles observed in similar areas like Bushbuckridge. As to the reason for these Bills coming here, the hon Minister has elaborated on these matters. We have also rendered our apology and our repentance in this regard and anybody who continues to lambast us in this regard is trying to score a political goal via an offside position. We table this Bill for consideration by this august House. Thank you very much for your attention.

The MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Chairperson, the National Council of Provinces has indeed delivered. It has delivered to the national executive, and to Ministers, who were nurtured, developed, and shaped by this House. [Applause.] So today you have, on the last day of this democratic period, the presence of two of your sons, as my colleague has correctly pointed out, who were largely influenced by the ability of this institution to contribute directly to their development. For that, both of us say thank you very much and, perhaps, our presence in the executive is a celebration of the outstanding achievement of this particular House. In doing so, we recognise the leadership of the presiding officers, the support of the Chief Whip and all other presiding officers.

What is interesting about this House, and this is a useful example in terms of a public education issue that was raised by you, Ms Letwaba, is that because we are drawn from the ranks of this particular House, we understand the importance of co-operative governance, the relationship between the three spheres of government, the need for collaboration, and the role of the National Council of Provinces and the National Assembly in giving effect to the implementation of legislation.

If we did not have a sense of this particular complex arrangement within our constitutional landscape, indeed the Minister for Provincial and Local Government – who is always in a hurry to get things done, full of energy, robust, and vibrant – would not have been able to achieve this. It meant that we had to collaborate as a Department of Provincial and Local Government and a Ministry of Justice or Department of Justice and Constitutional Development. It is in this regard that I would like to say thank you very much to Mr Rudman and his team for their commitment in ensuring that, as agents on behalf of the Ministry of Provincial and Local Government, we were able to deliver. So, you have delivered two Ministers who have indeed delivered the legislation on time to the people of Merafong and Khutsong.

This would not have been possible if it was not for the able, wise, experienced, capable, competent, proficient and well-endowed leadership of the two chairpersons, Kgoshi Mokoena and hon B J Mkhaliphi. For your leadership and collaboration, we say thank you very much. [Applause.] As the astounding leaders that you are, you would tell me that it would not have been possible without the participation of your very committed and passionate members of the committee. So, to the members of the select committee of all political parties, thank you very much for your co- operation.

I think the next lesson that can be drawn from this experience, and this has been indicated in the speech of Cllr Moloi from Salga, is that central to the tenets and the imperatives of our Constitution is the participatory nature of our democracy. We should engage with communities, and what hon Worth - who is normally very placid, very serene, and very calm - has said now, very passionately in a moment of excitement about the elections, is that we didn’t listen attentively. We were not listening well enough to the voices of the people. What we are saying, and what he is saying - unfortunately, he is going to abstain - is indeed true. I think both my colleague and I would say quite unashamedly that the ANC apologises. We take the responsibility, as the leading party in government which certainly would influence the outcomes of political decisions, to say that to the people of Khutsong and Merafong.

However, this debate, and that is the next lesson, is not about provincial boundaries; it is not about competing fiefdoms; and it is not about where the line is drawn. It is a recognition of the nature of our societies as they evolve; of its diversity in terms of language; and of its linkages, as Ms Letwaba quite correctly pointed out, to the social and economic phenomenon that the community encounters in their day to day living. When I think of what Ms Vantura said, and she spoke quite correctly about the frustration of the community in terms of education, this House would know more than any other House about how we had to transport people physically to to and from Further Education and Training colleges and Khutsong to enable the Grade 12 learners to write the matric examination. That meant that something was not right, that there was resistance, and that people were unhappy.

However, the reality, and that is the next lesson, is that the people of Khutsong and Merafong did not go to the polling stations. They did not vote for the DA. They did not vote for the IFP. They said to the African National Congress: “We are disappointed. You have not heard our pleas for incorporation. You have not recognised the complex nature of our society and our linkages of yesteryear. Please reconsider.” That plea was responded to by the African National Congress. That is why the ANC is saying that it is sorry and that it is neither proud nor condescending. It will not only admit where it has erred but will also rectify the error in a hurry.

To my colleague, the Minister for Provincial and Local Government, if you can please listen to me – I know this is his House – I wanted to speak to you directly to say thank you very much for the enthusiasm, spirit, and urgency with which you dealt with this matter. Thank you very much for doing so and for recognising that this is not the end of the journey. I know that, as I speak here in this House, the Minister has been to Mutse, the Minister has been to Matatiele, and the Minister is aware that even within the North West Province, hon Moseki, there are other areas which have to be looked at. In fact, his closing remark was that he is tasked with the responsibility of looking at the consolidation and alignment of provincial boundaries in its totality.

It is not about fragmentation, about Matatiele which must be attended to, and indeed is being attended to as we speak, or about Mutse as we look at it. It is about saying that, given our experience over the past 15 years, we recognise the challenges and the socioeconomic linkages. How do we do it? How do we create a unitary state with boundaries that make sense to the people, recognising their diversity and not intending to fragment them, to divide them or separate them, but really to unify them around issues of socioeconomic development? These notable points for development are going to be recognised, so we say thank you very much. I am very impressed with the quality of the contributions that have been made here. They certainly, in no uncertain terms, quite unequivocally, reflect a clear understanding of the challenges of local government, provincial government, and its interrelationship. Cllr Moloi, quite correctly again, raised the issue of the implementation of the protocol. We have an intergovernmental relationship framework. Protocols are critical and Salga as well as Ms Letwaba from Gauteng have indicated that the implementation of these protocols, these transitional arrangements that the Minister for Provincial and Local Government has spoken about, are critical and necessary.

Let me assure hon Ntuli that, indeed, Treasury is aware of its responsibility in providing resources to the community of Merafong, including Khutsong, and, indeed, National Treasury has allocated resources. So, in the realignment and the rearrangement of the provincial boundaries, there will not be any financial prejudice or hardship. What should, however, occur is a strong oversight and monitoring, and strong collaboration among provinces, and among cities, to ensure that delivery does take place and resources that have been earmarked are spent for the benefit of the people of Merafong, as well as the people of Khutsong.

What we are saying, which is another lesson that we have learned from this, is that there is no better teacher than experience and we learn from our mistakes. We are better able to understand the needs of communities in its great diversity if we interact. The party that I belong to does not only go to communities but goes door to door to listen to the concerns and the needs of our people, because a constitutional amendment is of no value and does not fulfil the objective of a developmental state unless it reflects, quite correctly, the aspirations and the ethos of a new democratic dispensation which says that our task as public representatives is to improve the quality of the lives of our people, especially the poorest of the poor. Today, what you are doing here is celebrating that commitment to ensure that we do indeed bring about a qualitative change in the lives of our people.

I will say, in conclusion, that an election period is imminent. We have responsibilities as public representatives. We have to be tolerant. We have to ensure all political parties have the right to participate without fear, without favour and without prejudice. We have a responsibility, as political leaders, to ensure that we instil discipline among our people and wish all political parties well in our new democratic elections.

To the members of this House and to its leadership, I can, as my colleague has correctly pointed out, only say thank you very much for contributing so significantly and so largely to our development to ensure that what we do, we do together, and we do it in a hurry, because together we can do much more. Thank you very much. Debate concluded. Question put: That the Constitution Sixteenth Amendment Bill be agreed to.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Bill accordingly agreed to in accordance with section 65 of the Constitution.

Question put: That the Second Report of Select Committee on Security and Constitutional Affairs on Constitution Sixteenth Amendment Bill be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

Cross-boundary Municipalities Laws Repeal and Related Matters Amendment Bill agreed to in accordance with section 75 of the Constitution.

CONSIDERATION OF REPORT ON NCOP VISIT TO LADY FRERE, EASTERN CAPE IN TERMS OF PROGRAMME OF TAKING PARLIAMENT TO THE PEOPLE

The CHAIRPERSON OF THE NCOP: Chairperson, thank you very much for the opportunity to make some remarks regarding Taking Parliament to the People, which is one of our most effective tools of public participation. It is a tool for engaging with our people, discussing with, informing and educating them about how Parliament or the National Council of Provinces’ functions, and how they can monitor government programmes on the ground. It is also a tool for making sure that information reaches the government on issues that need to be addressed on the ground.

Therefore, once again, the National Council of Provinces has reinforced this programme of Taking Parliament to the People. It has given us and the people an opportunity to raise the issues that bother them on the ground - bread and butter issues that affect them on a daily basis.

It has also given all the three spheres of government - national, provincial and municipalities - an opportunity to respond to these issues. Through this programme, South Africans living in remote areas are now in a position to access us as Parliament. It enables us to engage with them physically and have eye to eye contact with them and talk to them directly and get their issues resolved.

I just want to dwell on a few issues that have been raised by the people when we were at Lady Frere, in the Eastern Cape. I see that hon Moerane is here, as well as Mr Le Roux – no, Mr Le Roux, you are not from the legislature. You are part of the legislature anyway, because you are from that province. Who else comes from the Eastern Cape? Ms Dlulane is here, but I don’t see other people. But, all I want to ask – Marius, where is he? – is that you make sure that you take the time to work in that particular area from time to time. Carry this report with you. Go there and make sure that the things that people have raised are happening on the ground. Follow them up. It does not matter whether it is the national government, the municipality or the provincial government that should do those things; it is our duty to make sure that those things are happening.

In terms of local government, the following issues were raised: the lack of access to clean water, sanitation and sewerage systems; the lack of service delivery in general; inadequate electricity supply; insufficient infrastructural development; decent housing; and no water for irrigation or less water in many areas. You would remember that we recommended that government should get involved to make sure that the big dam around Lady Frere is utilised so that people can get potable water from it. Because this dam is big enough, it could also be utilised for irrigation so that people can continue with farming in that particular area.

In terms of LED, Local Economic Development, some of the income-generating agricultural projects have ground to a halt at the moment owing to a lack of water. As I have said, if we can begin to generate water for that scheme, the people will be in a position to go on working on those agricultural projects which have almost ground to a halt.

The small, medium and micro enterprises are not supported enough and there is no evidence of municipal funding for some of them. We still have to do a lot of work in this regard to make sure that these small enterprises rise in number, because they are part of the economic hub in any province. They play a very significant role in developing our economy and that makes them full participants in the economy of the country. If they are not supported, they will not be in a position to participate fully in the economy of the country.

The lack of transport hampers the delivery of crops, the markets and other marketing strategies, and this is still a problem. That is what we have to look at. We have to talk to the Department of Trade and Industry and see how we can assist those people. There is very little capacity-building, particularly with regard to the administrative task and operations of these small enterprises.

The lack of security for initiated projects in some instances leads to theft and vandalism. Those are the things that government has to look at. Locally initiated projects dealing with education, school feeding, health, correctional services and social development are not fully supported by government at times.

With regard to integrated planning, which is a very important tool for the municipality to be able to deliver, we have noticed that priorities are sometimes duplicated in terms of the Integrated Development Plans. We now want to take this opportunity to encourage municipalities to make sure that, as they compile these IDPs, they go to the people themselves and not get consultants to do these things for them. Municipalities must go there and discuss with the people and find out what their needs are. Before compiling any IDP, they should first discuss with the people the priorities they would like to have funded.

The implementation of the IDPs is crucial because it is no use having an IDP and not implementing it. At the end of the term, you would find that you have had a lot of IDPs, but there has been a lack of implementation. Therefore, we need to strengthen capacity in terms of the delivery of that plan that has been identified by the municipality in co-operation with the people.

In terms of health matters, there was a notice of overcrowding owing to overutilisation of clinic services; insufficient staff in the clinics; lack of electricity and satellite installations at some health care facilities; reliance on old X-ray machines to perform scans and other related functions at hospitals; lack of provision of 24-hour services; and an insufficient number of ambulances and medical emergency personnel. Consequently, people have to be transported to clinics - some of them on wheelbarrows and others in hired cars - whilst they don’t have money because they don’t work. These are some of the things we have to look at. Another issue raised was the shortage of medication which has to be dispensed to people.

Regarding social security, land beneficiaries indicated that they were not receiving enough assistance from government. Individuals and communities have received land from government, but, to date, they have received little assistance, in the form of training and infrastructure from government, in order to become productive. Fencing of farming land continues to be a great challenge, because the livestock gets into the land and feeds on the product that has been planted by the people on their land. Therefore, we need to fence in this land for the people. Grazing land for stock is also limited and we should get enough grazing for the stock. Some of the issues that were raised were the need for proper irrigation systems, the catchment areas and incomplete work by contractors.

In terms of education and the Extended Public Works Programme, EPWP, the following issues were raised: some of the schools are still built from mud; the lack of electricity, water and sanitation in some areas; the schools nutrition programme is not very effective in some of the schools; and a lack of roads and bridges restricts access to some of the schools, because when the river is overflowing, children cannot go to school, leading to poor school attendance. These are some of the issues that were raised, including the insufficient budget to meet the needs of schools and the prevalence of a high teacher-pupil ratio.

In terms of the EPWP, accommodation and funding for home-based care are still challenges we need to look at. Further training is needed for administrative and financial skills. There is also a lack of support for municipalities to engage in projects. Applying for a foster care grant remains a challenge, and this leads to backlogs with regard to social workers processing child grants. Backlogs with regard to the establishment of Early Childhood Development Centres is also an issue that is raised in the report, and we have to look at it. It is therefore very important to note the lack of time we have experienced this year since this is an electioneering year and with the elections at our doorstep. Together we can do more in the fourth Parliament.

I would like to request that those who will be coming back to this House should take this work forward and not let it fall by the wayside. They must make sure that all the issues that have been raised by our people on the ground can be expedited so as to make their lives better. That is what we are committing ourselves to doing, and that should be done. We should not hesitate to say to them that we are here for them and can help them do these things. I table this report and I ask you to adopt it. I thank you very much. [Applause.]

Mr D G MKONO: Chairperson, hon members, in the third democratic Parliament, which is now drawing to a close, this institution took the strategic initiative to expand its oversight role and presented a programme of action which later came to be known as Programme 2009. It established the focus of the work of the NCOP as largely oversight in order to strengthen the delivery of services. It also compels the NCOP to direct more time and resources towards the performance of oversight work as a mechanism for following up on the implementation of laws, government policies and programmes.

The NCOP, therefore, saw an expanded oversight role over the past five years, which resulted in the thorough entrenchment of the programme of Taking Parliament to the People as a key mechanism for ensuring public participation in Parliament and a strong culture of participatory democracy in South Africa. The programme has grown to be an important mechanism of creating a platform for the public representatives to engage with the people on the challenges that they face or those around service delivery.

Since the inception of the programme in 2004, the NCOP has visited all nine provinces and undertook follow-up visits to some of the provinces that were facing immense service delivery challenges. During its visits, the NCOP brings to the people the executive and senior officials from the public service that would be able to respond to service delivery concerns. This is designed to ensure that obstacles affecting the delivery of quality and efficient services are immediately attended to – I hope the opposition is listening there.

Pursuant to the fulfilment of its vision of a People’s Parliament as part of its oversight function, the NCOP held its annual programme of Taking Parliament to the People in Emalahleni Local Municipality in the Eastern Cape during the first week of November last year. As with previous occasions of this nature, the NCOP was enabled to broaden opportunities for public participation for communities that would ordinarily find it difficult to assess Parliament directly.

More importantly, it would enable the NCOP to perform its oversight role and to target areas where public education about democracy in the country is needed most, as well as areas where people usually feel that government is neglecting them, thereby ensuring that the concerns of communities are heard and taken into account.

An outstanding feature of the last on-site sitting of the NCOP in the Eastern Cape was, in my view, the urgent and persistent need for rural development, land reform, agrarian reform and food security, which are inextricably linked and intertwined. It is therefore inevitable that problems and deficiencies experienced in one or more of these aspects invariably cause imbalances in others.

Colonialism and apartheid were rooted in the dispossession of the African people of their land and the destruction of African farming. Poverty, inequality and unemployment are the consequences of centuries of underdevelopment and exploitation perpetrated on the majority of the population, which have its most destructive and enduring impact on rural South Africa. During this visit we have also seen that these rural areas still lack basic infrastructures, such as roads, water and electricity supply, which entrenches the problems of chronic poverty and limits the potential of communities to sustain economic growth, rural livelihoods and social development.

It is therefore clear that efforts to extend free basic services and government services, such as education and health care to all our people, are slowest to reach rural areas. We have also seen that the municipalities in the poorest and most rural parts of the country are among the most deprived in terms of human, physical and financial resources. This lack of capacity limits the extent to which rural municipalities can act as a catalyst for growth and development.

Rural development is a central pillar of our struggle against unemployment, poverty and inequality. Despite significant progress made over the past 15 years, people living in rural areas continue to face the harshest conditions of poverty, lack of access to land and basic services. Interventions, such as the Integrated Sustainable Rural Development Programme, have made significant, but thus far insufficient progress. Although social grants are making a huge contribution to pushing back the frontiers of rural poverty, fighting hunger and improving the potential for economic growth in rural areas, it cannot substitute a broader strategy for rural development and job creation. “Abantu mabasebenze”! [People must work!]

The upscaling of social and economic infrastructure and the extension of quality government services, especially as far as health and education to rural areas are concerned, still require continued attention while land reform initiatives, including the land and agricultural reform programme, need to be strengthened and expanded to create sustainable rural livelihoods on a greater scale. However, I am happy to say that, as far as rural development is concerned, the ANC is committed to a comprehensive and clear strategy linked to land and agrarian reform and the improvement of the conditions and livelihood of the rural population. The ANC is determined to review the appropriateness of the existing land redistribution programme and to introduce measures aimed at speeding up the pace of land reform and redistribution in order to promote landownership.

It has to intensify the land reform programme and ensure that more land is in the hands of the rural poor, providing them with the technical skills and financial resources to use the land productively in the creation of sustainable livelihoods and decent work in rural areas. Furthermore it has to expand the agrarian reform programme that will focus on the systematic promotion of agricultural co-operatives throughout the value chain, including agro-processing in the agricultural areas and developing supporting measures to ensure better access to markets and more finance to small farmers. This will ensure a much stronger link between land and agrarian reform programmes and water resource allocation and that the water resources reaching all our people, especially the poor, are of a high quality. It will also strengthen the partnership between government and traditional leadership focusing on rural development and fighting poverty, developing programmes to promote the important role of agriculture and employment and meeting basic needs for community development.

The latest initiative of Taking Parliament to the People, in the Eastern Cape, has again clearly demonstrated that millions of our people who farm on small agricultural plots in rural areas can and do make a substantial contribution to poverty reduction and the creation of sustainable livelihoods in the most adverse conditions. Agriculture in these areas remains a critical opportunity to combat poverty and provide … [Time expired.] Sicela nifake isitampu kulo mbiko mhle kakhulu. [Please endorse this good report.] Thank you. [Applause.]

Mr J W LE ROUX: Chair, hon members, today is the day that everybody’s admitting their mistakes and it was very refreshing to see two of our Ministers admitting their mistakes. It would be very, very nice if more ANC Ministers would start doing the same.

As you know, the concept of Taking Parliament to the People was often criticised by the DA. We experienced it as an ANC road show and prohibitively expensive. Now it’s my chance to admit something, and I admit that, in retrospect, it was an initiative that had many positive outcomes. [Interjections.]

An HON MEMBER: More DA …

Mr J W LE ROUX: Very few, but there were some. [Interjections.]

Visiting the rural areas of the Eastern Cape and witnessing the poverty and lack of basic infrastructure must inspire the present government and future governments to reconsider carefully and to reprioritise. Wasting money on grandiose schemes is unacceptable; money must be spent where it is most needed. Spending billions on huge soccer stadiums and, worse, submarines we have no use for can never be justified. After 15 years of democracy it is disgraceful that children in Lady Frere must go to school where there is no water, no electricity, no toilets and in some schools not even desks.

Taking Parliament to the People exposed all of us to these injustices that young children must endure on a daily basis. Unfortunately the same applies for the state of our medical services in those remote areas. It is nothing but disgraceful.

Ek dink in die toekoms behoort nasionale Ministers en hul provinsiale eweknieë hierdie besoeke saam met die Nasionale Raad van Provinsies mee te maak. Slimstories van die verhoog af is net nie meer goed genoeg nie. Ministers, net soos ons, moet eerstehandse kennis hê van wat in hierdie arm gebiede gebeur en wat die werklike behoeftes is.

’n AGB LID: Nie kospakkies nie!

Mr J W LE ROUX: Ja, nie kospakkies nie.

Agb Voorsitter en kollegas, dis die laaste maal dat ek hierdie Raad sal toespreek. My hartlike dank aan u vir ’n baie aangename vyf jaar. (Translation of Afrikaans paragraphs follows.)

[I think national Ministers and their provincial peers should join the National Council of Provinces on these visits in future. Clever speeches from the stage are just not good enough anymore. Ministers, just like us, must have firsthand information about what is happening in these poor areas and what the real needs are.

An HON MEMBER: Not food parcels!

Mr J W LE ROUX: Yes, not food parcels.

Hon Chairperson and colleagues, this is the last time that I will address this Council. My sincere thanks to all for a very pleasant five years.]

Obviously there were disappointments as far as decisions that were taken by the NCOP were concerned, but fortunately the positive developments far outweigh the negative. To the chairpersons that I was involved with, the hon Kgoshi and Mr Shiceka, who was late this morning – I was very surprised to see that, because he always tried to be on time – and lately the hon Mkhaliphi, thank you very much for the sterling work you gentlemen did. It was always a great pleasure to be in your committee and to serve under you.

Wat die Voorsitter van hierdie Raad betref – ek sien nie nou vir mnr Mahlangu hier nie – kan ek sê hy het dit reggekry dat die atmosfeer in die Raad oor die vyf jaar gaandeweg ál beter geword het. (Translation of Afrikaans paragraph follows.)

[Concerning the Chairperson of this Council – I do not see Mr Mahlangu here – may I say that he has managed to improve the atmosphere in this Council gradually over the past five years.]

Five years ago we first met as colleagues, but now we part as friends, and I really thank you all, ladies and gentlemen and colleagues, most sincerely.

Wat my DA-kollegas betref, vriende, dit was heerlik om saam met julle te werk. Ek het elke dag daarvan geniet. Ek dink ons was ’n effektiewe span. Wattie, baie dankie vir die wonderlike opoffering wat jy gemaak het. Dankie. [Applous.] (Translation of Afrikaans paragraph follows.)

[Concerning my DA colleagues, friends, it was pleasant working with you all. I enjoyed every moment of it. I think we were an effective team. Wattie, thank you very much for the wonderful sacrifice you have made. Thank you. [Applause.]]

Ms N MOERANE-MAMASE (Eastern Cape): Chair, hon members, I rise on behalf of the Eastern Cape to say that we are grateful as a province that you chose us for your visit. The people of Emalahleni, I promise you, will forever be grateful for that visit. They are hoping that all of us seated here will advocate their plight to better their lives as a collective. They are also expecting us not to point fingers, but to take Emalahleni as a classic case of a town in South Africa.

I must confess that reading the report was depressing. The report projects a forgotten village. While realising that much has been done, and much still has to be done, nothing good was acknowledged in that report, and my heart was so sore. I was hoping that in an executive summary we would trace the development of that particular area and acknowledge the fact that so much has been done or realised by the Eastern Cape.

As a province, yes, we have been in government for 14 years. We should not forget what we inherited – a town with no facilities. But during our era so much has been done. The tarred roads that we are talking about are a product of the interaction with us, and the infrastructure in the town is what we have put in place as a province which includes sanitation and electricity. Basically the town is a functional entity, unlike before, and that should be acknowledged.

Realising that the villages are where one finds the majority of inhabitants, it is important that as a province we have identified that the different spheres of government should plan and budget together. And when we visit these areas in the different provinces, we should make sure that our input-output is balanced. We need to make sure that, when we visit, we will be working together to monitor what we have put in place together. If we are not going to do that, we will never realise how far we are in terms of our development.

We can talk about fruitless and wasteful expenditure. Fortunately, we have had a debate on the Division of Revenue Bill and we all participated in that. Regarding those quotas that are quoted in the Division of Revenue Bill, surely, if you are to develop the Eastern Cape and even KwaZulu- Natal, that is not enough. We have been to other countries of the world and we are mindful of the fact that it takes so many years to develop an area such as Emalahleni.

With the infrastructural backlogs that we are faced with as a province, we need to step up with the Division of Revenue Bill. It is unfortunate that I didn’t take part in that debate. I am just taking this opportunity to point out that the resources we are allocating to smaller towns will not assist them. It will take them years to get to where other areas are. The Eastern Cape, as a result of that, is faced with migrations from those areas to the Western Cape, without realising that those areas need far more development. The problem is that we still have to develop the bigger towns. So the priorities will forever change in our areas.

I am grateful for this opportunity, because I know as a collective we will do more. That is a slogan, but we need to put that into practice. Most of the areas that are highlighted in the report are the responsibility of the national government and not of the provincial government. The much-needed resource of water falls under the Department of Water Affairs and Forestry and that is a national competency. So we really request the House to advocate on our behalf with regard to those resources.

As a province, yes, we can do much more, but we can’t do everything. We therefore want to encourage everybody seated here. You have seen the pilot in terms of Emalahleni. When our plight is debated, please, we would be forever grateful if you were to advocate for us when it comes to the division of revenue.

As a province we do recognise that Taking Parliament to the People is a very important tool to measure the achievements of our Millennium Development Goals. We do realise that, if we were to measure what we saw at Emalahleni as a replica of what is happening in other provinces, the pace at which we are allocating resources to the different areas will never realise the Millennium Development Goals we are hoping to achieve by 2014.

We are really grateful that you chose to visit Emalahleni. As the province of the Eastern Cape we will follow whatever we have to follow. I thank you. [Applause.]

Mnu M A MZIZI: Ngathi umnumzane Le Roux usephumile noma. Hawu, nanguya. Uyihlabe esikhonkosini. Udaba lokuthatha iPhalamende liye kubantu lubalulekile kakhulu. Abaningi babecabanga ukuthi kuyangcebelekwa laphaya, sifuna nje ukuyobona izihlobo. Uma esevumile umnumzane Le Roux kusho khona ukuthi umyalezo ufikile kwabaningi.

Uma ngabe ngempela ngempela siyithatha indaba yokuthi sithathe iPhalamende kubantu, siyithatha ngokukhulu ukuqiniseka kufuneka siye ebantwini siyobonana nalabo bantu abasikhethile. Singabi kude nabo. Benginganicebisa nje mina. Nina eningakakuboni lokho bhekani uhlelo luka Khumbul’ekhaya kumabonakude, nikhumbule ekhaya. Ngiyabonga. (Translation of isiZulu speech follows.)

[Mr M A MZIZI: It seems as if Mr Le Roux has left. Oh, there he is. You are quite correct. The issue of taking Parliament to the people is very important. Many people thought that it is about having an outing to see relatives. Now that Mr Le Roux has clarified it, it means that the message has reached a lot of people.

If, in all honesty, we regard taking Parliament to the people with utmost seriousness, we must go and see the people who voted for us. We must not be far away from them. That is my plea to you. Those of you who have not realised this must watch the program called Khumbul’ekhaya on television, and remember your home. I thank you.]

Nksz B N DLULANE: Sihlalo, ndicela ukuhlala phantsi kuba sendiyintlekisa koogxa bam aba. Ndiyabulisa ngale njikalanga, endingaziyo nokuba ayiyo yokugqibela na ndimi apha. Ukuba ndiya phi na, kuya kuxhomekeka kwiivoti ze- ANC. Kodwa ndiyazi ukuba siseza kuphinda siphathe.

Ndinombulelo omkhulu kuye wonke umntu othe wathetha apha. Bekufanele ukuba ndibe andithethi namhlanje, kuba ndandithethile ngaphambili. Kambe, ndiva kamnandi xa oogxa bethu bephinda eza zinto saziva phaya eLady Frere.

Njengokuba saya eLady Frere siyile Ndlu, emva kokuba sasiqale ukusa iPalamente ebantwini ngowama-2002, ndifumanise ukuba siye sathi chatha kweli ithuba. Ibikokokugqibela ukuba sise iPalamente ebantwini kulo nyaka, kwaye ndiqinisekile ukuba iqela elilandelayo liya kwenza nangaphezulu.

Ndifuna ukutsho ukuba ngokubhekisele kwezinye zezicelo ezenziwa ngabantu phaya – nanjengoko uMhlalingaphambili esitsho – kuyimfuneko kwaye kunyanzelekile ukuba sonke sizilandele, nokuba ubani uza kuba kule Ndlu, kweyephondo okanye kumasipala.

Ndingalitsho litsole ukuba ngokubhekisele kwezinye zezicelo ezenziwa phaya, sele kukho ingxowa-mali enyusiweyo enemali engangezigidi ezihlanu zeerandi, eza kusetyenziselwa ukubonelela ngezindlu zangasese eziliwaka – zisuka kwinkampani iSanitation Toilets – namanzi. Ezi zibonelelo ziza kuya Emalahleni, eSakhisizwe naseNtsika Yethu. Ziza kuthunyelwa ngenyanga ka- Apreli kulo nyaka wama-2009.

Ke ndicinga ukuba ubukho bethu phaya kwaba luncedo. Ngokungabi kho kwethu phaya mhlawumbi sasingazi kukwazi ukunceda laa masipala ukuze abe ngoku uncediswa ngoongxowa-nkulu ukunyusa ingxowa-mali ejongene noku.

Njengoko nisazi ukuba uthini na umqulu wonyulo we-ANC, ndiqinisekile ukuba enye yezinto ekwathethwa ngazo phaya eLady Frere yimfundo. Siyazi ukuba bekukho phaya izikolo emgangatho wazo ubungancumisi. Nomphathiswa wezemfundo wephondo omtsha naye ebekho kwaye uthembise ngokuziqwalasela eza zikolo zithathu. Ndithi ke ngoko iNdlu le ze imjonge umphathiswa lo ukuba uza kusigcina na isithembiso sakhe ngokubhekisele koku.

Kukho iphulo iNceduluntu phaya, loomama. Ndingatsho namhlanje ukuba sisonke sanceda ngokuya phaya ngoba inkqubo yokugrumba amanzi omthombo phaya kulaa ntaba yaseNcedo Lwethu iyaqhuba.

Ndingatsho ukuba, njengoko etshilo ugxa wam osuka kwiphondo, ubonelelo ngamanzi ngumsebenzi weSebe leMicimbi yaManzi naMahlathi kwaye eli sebe lizibandakanyile kwezi nkqubo. Eli sebe linaso isiphakamiso elisenzileyo, kwaye liwavavanyile namanzi. Ndithetha ukuba le yinto eyenzeka emva nje kokuba sisandul’ ukusuka phaya. Ndinethemba lokuba iNdlu le iza kuwulandela lo mba.

Kukwakho nesixa-mali esisilelayo kwiinkonzo zezentlalo ekwakukhalwa ngaso ngexa sasijikeleza phaya kwiphulo iNceduluntu Development Project. Abantu babekhala ngokuba banikwa isixa-mali esiyi-R750 000. Kweso sixa-mali kwafumaneka imali eyi-R375 000 kuphela; intsalela yayo zange iziswe. Ndimi apha nje ndingumlomo wephondo lam; iyile loo mali. Mhlawumbi ngeyingayanga ukubangaba naningazange nithathe inxaxheba, nasuka apha naya phaya eLady Frere. Maz’ enethole, Bhunga laMaphondo leSizwe!

Phakathi kwezinye izinto eziphakanyiswayo kulaa ngxelo sisicelo sokuba ngokubhekisele kwizibonelelo zikarhulumente, noko singa singathi nyi, singapheleli kubantwana abaminyaka ili-14.

Thina ke singumbutho kaKhongolozi sesisinyusile esi sibonelelo. Sizivile izicelo zabo, sathetha nabaphetheyo. Ndiyazi ke ukuba njengokuba siphethe nje, siyabaphulaphula abantu ze sixelele abaPhathiswa. Kambe, niyabona ukuba siyababonelela abantwana ukuya kuthi gaa kwabaminyaka ili-18. Sizisa iinkonzo ebantwini, andithi? Iyabonakala loo nto.

Kukho nengxaki esiyive phaya enxulumene noMsobomvu. Andithi apha besisandul’ ukuvotela ubuArhente beSizwe boPhuhliso loLutsha, i-National Youth Development Agency. Kuyabonakala ukuba bathethile abantu base- Emalahleni, yeva i-ANC. Ndithetha nje simka kule Ndlu siyiphumezile into yokuba uMsobomvu mawube luncedo njengoko kukhalwa ngawo.

Kukho abantu abasoloko befundekela besithi uMsobomvu unika kuphela abantakwethu abakwi-ANC. Ayiyo nyani ke leyo. Sithe sakuva ukuba kukho into ekufuneka siyilungisile kuMsobomvu, saphumeza ezo zicwangciso.

Phaya kumqulu wonyulo we-ANC, sithetha ngophuhliso lwemimandla yasemaphandleni. Bonke abantakwethu abebemi apha bathethe ngesixa-mali esiyi … (Translation of isiXhosa paragraphs follows.)

[Ms B N DLULANE: Chairperson, may I please sit down, because my colleagues are really making fun of me. I greet you all this evening, and I do not know whether or not this is the last time I stand here as an elected representative. The number of votes cast for the ANC will determine my future. However, I know that the ANC will still be the ruling party.

I am grateful to everyone who has addressed the House. I am not supposed to be speaking today, because I had an opportunity to speak before. Nevertheless, I feel good when our colleagues again mention the things that we had heard at Lady Frere.

As this House, we took Parliament to the people of Lady Frere, after we had initiated the programme in 2002. I have discovered that this time we have outdone ourselves. It was the last session of Taking Parliament to the People for this year, and I am sure that the next group will do even better. With regard to some of the requests from the people of Lady Frere, it is necessary and a matter of must that, as the Chairperson has indicated, we indeed follow up on them, regardless of whether one will be deployed in this House, the provincial legislature or at municipal level.

Let me state categorically that, with regard to some of the requests that were made by the communities there, a fund has already been set up and it now stands at R5 million, which will be utilised to provide 1 000 toilets - to be provided by Sanitation Toilets - and water. These toilets will be allocated to the communities of Emalahleni, Sakhisizwe and Ntsika Yethu. They will be delivered in April 2009.

So, I think our visit there has been helpful. If we had not gone there, we would not have been in a position to assist the municipality to such an extent that the business community is now also helping to boost the said fund.

I am sure one of the things that were mentioned at Lady Frere was education, because, as the ANC manifesto declares, education is important. We know that there were schools there which did not meet the required standard. The new MEC for education was also present there and he promised to look at those three schools. Therefore, I say the House should hold the MEC to his word as far as those schools are concerned. There is also a women’s project, called Nceduluntu Development Project. Today I can say that it was a good thing that all of us went there, because now the project of diverting water from the fountain at Ncedo Lwethu mountain is in progress.

As my colleague from the province has indicated, provision of water is the responsibility of the Department of Water Affairs and Forestry. The department has been involved in these programmes. The department has tested the water and has made recommendations. This happened shortly after we had left the area. I hope that the House will follow up on this matter.

When we visited the Nceduluntu Development Project, there were complaints regarding a shortfall in the social services budget. The people complained that they had been allocated an amount of R750 000, but they only received R375 000. The balance thereof had never been transferred to the project. I stand here as the mouthpiece of my province; that outstanding amount has now been paid. Perhaps it would not have been paid if you had not gone to Lady Frere. We are grateful to the NCOP for that.

Amongst other things highlighted in this report, is a request regarding the extension of the child support grant to include children who are older than 14 years.

We, as the ANC, have already granted this wish. We have listened to their requests and we have spoken to the authorities. As the ruling party, we listen to the people and take their requests to Ministers. However, you can see that the child support grant includes children who are 18 years old. We bring services to the people, don’t we? That is clear.

We had also heard that there was a problem with regard to the Umsobomvu Youth Fund. We have just voted for the National Youth Development Agency. It is clear that the community of Emalahleni has spoken, and the ANC has listened. As I speak, this House has succeeded in ensuring that the Umsobumvu Youth Fund delivers on its mandate because the people were complaining.

There are people who are always making noises alleging that the Umsobomvu Youth Fund approves loans to our brothers in the ANC only. This is not true. When we heard these allegations levelled against the Umsobomvu Youth Fund, we took corrective measures.

In the ANC manifesto we talk about the development of rural areas. All my colleagues who spoke before me referred to an amount of …]

… R1,7 billion, set aside for food and security.

Sisekhondweni. Walala, wasala ke wena mntu ungawuboniyo umbutho obonelela iimfuno zabantu. Mandibulele. [Kwaqhwatywa.] [We are on track. You snooze, you lose, especially if you do not see which party provides for the people’s needs. I thank you. [Applause.]]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON SOCIAL SERVICES – AGREEMENT BETWEEN GOVERNMENT OF RSA AND THE GOVERNMENT OF KINGDOM OF LESOTHO ON FACILITATION OF CROSS-BORDER MOVEMENT OF CITIZENS OF RSA AND LESOTHO

Ms N M MADLALA-MAGUBANE: Angibonge Sihlalo. Ngibonge abahlonishwa abakhona kulendawo. [Chairperson, I thank you. I also thank the hon members present in this House.]

This agreement is between the government of the Republic of South Africa and the government of the Kingdom of Lesotho on the facilitation of cross- border movement of citizens of the Republic of South Africa and the Kingdom of Lesotho. The agreement itself seeks to allow for the fairly free movement of citizens between these two countries. It does so by allowing citizens to enter and depart from these countries without visa applications, permitting them to enter these countries and endorsing such entries and departures.

However, the agreement takes into account the security risks involved in such movements by providing for the verification of passports to validate and authenticate entry into these countries, especially if such entry is the first-ever entry.

It puts responsibility on these countries to ensure that its citizens are aware of the contents of this agreement and monitor compliance to it as well. It also recognises that people commute between countries for employment purposes and makes provision for such movement to take place fairly freely. Thank you.

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

               WESTERN CAPE INHERITED DEBT RELIEF BILL

            (Consideration of Bill and of Report thereon)

Ms D ROBINSON: Chairperson, the 1998 Inherited Debt Relief Act 54 of 1998 authorised and effectively cleared the inherited debt of provinces affected by the expenditure of the former Transkei, Bophuthatswana, Venda and Ciskei, the TBVC states, while the Finance Act, Act 35 of 2000 authorised the overexpenditure of former regional structures, the former Transvaal, in order to clear the relevant account, but the inherited debt of the Western Cape was not cleared.

This inherited debt was expenditure incurred by former TBVC states, Ciskei, as well as parts of the old regional structures; namely, the Cape Provincial Administration and the House of Representatives or the Department of Education and Culture. This is the money bill that authorises the overexpenditure to facilitate the accounting process necessary to clear the overdrawn accounts of the former Cape Province structures in line with similar arrangements in the 1998 Inherited Debt Relief Act and the 2000 Finance Act of 2000.

During the public hearings the committee was briefed about the implications of the Bill, namely that there are no cash flow implications; there is no impact on general government debt; and that there are also no interest implications. The Select Committee on Finance also considered the submissions that were made. Having applied its collective mind, the committee recommends the passing of this Bill. Thank you.

Debate concluded.

Bill agreed to in accordance with section 75 of the Constitution.

CONSIDERATION OF REPORTS OF AD HOC JOINT COMMITTEE FOR APPOINTMENT OF
       MEMBERS TO THE NATIONAL YOUTH DEVELOPMENT AGENCY BOARD

Nk N F MAZIBUKO: Ngiyabonga Sihlalo. Ikomidi lesikhashana ebelibekelwe ukwenza izincomo zamalunga ebhodi lawo awesiKhungo sikaZwelonke Sokuthuthukiswa Kwentsha, liyabonga ukuthi iPhalamende liyaqonda ukuthi izidingo zentsha ziyanakekelwa futhi liyaphumelelisa izifiso zentsha lapha eNingizimu Afrika.

Ibhodi leli le-National Youth Development Agency lizoba namalunga ayisikhombisa. Ibhodi yilona elizohambisa izinhlelo zaso lesikhungo. Alizukuhlala lingafaki ngisho nombiko kwiPhalamende nakuMongameli. Kepha-ke lizobe liphoqelekile ukuthi lenze njalo. Sizokhumbula ukuthi ibhodi leli noma isikhungo sizobe siphathe izigidi zamarandi ukwenza ukuthi intsha ikwazi ukuziphucula ngazo.

UMongameli yena uzokwethula umbiko lapha kwiPhalamende. Ngithemba ukuthi amalunga ePhalamende wona azokwenza umsebenzi wawo wokwengamela kanye nokuqapha.

Mangibonge amalunga asebenze ngokuzikhandla kusukela esontweni eliphelile ukufinyelela kuso lesi sikhathi sanamhlanje. Ngibonga wona amalunga, omama uHelen Matlanyana kanye noPriscilla Themba; obaba uPapi Tau, uMkhono kanye noMzizi ngokunjalo. Amanye amalunga lawa awamaqenjana amancanyanyana awazange alibhade emihlanganweni ngoba vele abanayo imigomo ephathelene nezentsha, nguKhongolose kuphela onayo.

Mangisho-ke ukuthi emva kokuthi kuyekwavezwa emaphephandabeni ukuthi sidinga intsha isondele ngaphambili. Siyesathola 173 curriculum vitae avela entsheni kulo lonke leli laseNingizimu Afrika.

Iningi labo babebadala kukhona nababo 1958 kodwa omncane ubeneminyaka engamashumi amane ubudala isibongo sakhe ngowakwaKhan. Siyesachazeka kakhulu singamalunga ekomidi ngoba kuyabonisa ukuthi intsha iyaluthanda lolu hlelo elwenziwayo lapha ePhalamende ngoba nayo ibamba iqhaza. Kuyekwahlungwa. (Translation of isiZulu paragraphs follows.)

[Ms N F MAZIBUKO: Thank you, Chairperson. The ad hoc committee that was designated to make recommendations with regard to the appointment of members to the National Youth Development Agency Board, is grateful that Parliament is ensuring that the needs of the youth are well taken care of and that it is realising the aspirations of the youth here in South Africa.

The board of the National Youth Development Agency will consist of seven members. The board will be responsible for the functioning of this agency. They will not just sit idly and not even present a report to Parliament and to the President. They will be obliged to do so. We will remember that this board or agency will be responsible for millions of rands that the youth can use to better their lives.

The President is going to table the report here in Parliament. I hope that the Members of Parliament will do their oversight and monitoring function.

Let me thank the members who have worked tirelessly since last week up until this time. I thank these members, hon Helen Matlanyana and Priscilla Themba, hon Papi Tau, Mkhono as well as Mzizi. Other members from these small parties did not come to the meetings because it is well known that they do not have policies concerning youth; it is only the ANC that has.

Let me say that after the announcement in the newspapers that we need youth to come forward, we received 173 CVs from youth all over South Africa. Most of them were very old; there were people who were born in 1958: The youngest was 40 years old and his surname was Khan. We were very impressed as members of the committee: It shows that the youth is interested in this project which takes place here at Parliament and they also play a pivotal role. Therefore, the short listing took place.]

We short listed them and remained with 26. Those are the candidates we interviewed and as a result got seven members who met the requirements.

The ad hoc committee wishes to table in front of this House the recommendation that the following young people be appointed as members of the board. They reflect the dynamic demographics of the country, are young and dynamic. One of them is disabled.

Kukhona ngisho nomlungu, kukhona nosuka kwelaseNdiya. [There is even a white person and another one who is an Indian.]

They have no criminal record, have experience in youth development and are between the ages of 18-35. Their names are Mcebo Rich Khumalo, Maria Tshabalala …

… lona oyewacashunwa ngabamaphephandaba bathi uyewakhuluma ngokusoma umama uPholisa Makeleni, Andile Lungisa, Yershen Pillay, Innocentia Motau kanye noFrancois Jacobus Slabber. Uma ngiphetha mangisho ngithi uKhongolose ukhuthaza yonke intsha ukuthi ingakhohlwa ukuthi ngomhlaka 22 Apreli kuyavotwa kulungiselelwa ukuthi bavotele impilo engcono. Yingakho singuKhongolose sithi uma sibambisene singenza ngcono ukuze siphucule izimpilo zentsha. Viva ANC! Viva! (Translation of isiZulu paragraphs follows.)

[…the one who was quoted by the newspapers as having talked about performing sexual acts on the thighs, Mrs Pholisa Makeleni, Andile Lungisa, Yershen Pillay, Innocentia Motau and Francois Jacobus Slabber.

In conclusion, let me say that the ANC encourages every young person not to forget that 22 April 2009 is election day and they should prepare themselves to vote for a better life. And that is why we, as the ANC, say that together we can do more so that we can better the lives of the youth. Viva, ANC! Viva!]

Debate concluded.

Question put: That the Reports be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Reports accordingly adopted in accordance with section 65 of the Constitution.

                 ORDER NO 9 REMOVED FROM ORDER PAPER

                           (Announcement)

The HOUSE CHAIRPERSON (Mrs M N Oliphant): I’ve been informed that the Select Committee on Security and Constitutional Affairs did not meet to finalise their report. Therefore Order No 9 has been taken off the Order Paper.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON SECURITY AND CONSTITUTIONAL AFFAIRS – MAGISTRATES’ COURTS: AMENDMENT OF RULES OF COURTS AND AMENDMENT OF RULES REGULATING CONDUCT OF PROCEEDINGS OF PROVINCIAL AND LOCAL DIVISIONS OF THE HIGH COURT OF SOUTH AFRICA

Order disposed of without debate.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

  CONSIDERATION OF REPORT OF SELECT COMMITTEE ON SOCIAL SERVICES -
          REGULATIONS MADE IN TERMS OF CHILDREN’S ACT, 2005

Mr M A SULLIMAN: Chairperson, the Select Committee on Social Services dealt with the regulations in terms of the Children’s Act, Act No 38 of 2005, and the committee wants to recommend that this august House adopts the report. Thank you. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

CONSIDERATION OF SECOND REPORT OF JOINT RULES COMMITTEE - OVERSIGHT AND ACCOUNTABILITY MODEL

The HOUSE CHAIRPERSON (Mr T S Setona): House Chairperson, hon members, distinguished special delegates, the hon Mazibuko says that she hasn’t seen the report. I must say that it is indeed a great privilege and honour to table this report at this last sitting of the National Council of Provinces in our third democratic Parliament, as printed on the ATC of 27 January 2009.

Believing that members have gone through this report – through its various stages of development - let me take this opportunity to thank those who made valuable contributions and inputs to this report. Particular regards must go to Adv Jodi-Anne van Niekerk, Adv Lulama Matyolo-Dube and other members of staff who spared no effort in ensuring the crystallisation of this report into its final product.

Allow me to conclude by saying that, unlike many reports that were crafted and developed by consultants, this report followed a different process. Its journey began in 1999 when, pursuant to section 59 of the Constitution - which clearly instructs Parliament, the National Assembly in particular, to develop mechanisms that would ensure effective parliamentary oversight – the Presiding Officers commissioned the report and a study was undertaken by Prof Hugh Corder. Please note that Prof Hugh Corder did not develop the oversight model. What the Prof has done was simply to study all international best practices and, unfortunately, he could not find one - globally. It is only our Constitution that links Parliament with an oversight and accountability model.

This report is an expression of the collective experience of men and women in the National Assembly and the National Council of Provinces over a period of 15 years, building on the work they have done, building on the experiences they have gone through, identifying weaknesses, translating those weaknesses into strengths, and systematising them into a coherent framework that we call the oversight and accountability model.

So all of us can give ourselves a pat on the back in that we are the first country to produce this kind of framework, which is yet to be tested in the arena of struggle through the actual practical activities of our committees. Thank you very much.

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

 CONSIDERATION OF REPORT OF THE NATIONAL COUNCIL OF PROVINCES 2004 –
                                2009

The CHAIRPERSON OF THE NCOP: Chairperson, once more I thank you for giving me the opportunity to present the report for 2009 that we started in 2004 when we started the Third Parliament’s NCOP.

The NCOP, once more, has played a very critical role in the consideration of the Bills initiated by Parliament, for example the Financial Management of Parliament Bill, the money Bills and the Mandating Procedures of Provinces Bill, which were passed in terms of section 65(2) of the Constitution.

As a House, we have added value to a number of Bills by effecting proposed amendments, including sections 75 and 76. For example, with regard to the Broadcasting Amendment Bill, we upheld the principle of the separation of powers, promoting the removal of the Speaker of the National Assembly as part of the appointing authority. Those who had been dealing with the Bill will remember.

The National Council of Provinces’ amendment to the Electricity Regulation Amendment Bill - now an Act assented to by the President, in order to provide municipalities with the right to administer the reticulation of electricity within their areas of jurisdiction - has, according to the Department of Minerals and Energy, expedited the supply of electricity to poverty-stricken communities, for example farms, rural areas and informal settlements. This is reflected in the report we are presenting here today.

However, we seem to have lagged behind in overseeing the implementation of the laws that we passed in the National Council of Provinces or the entire Parliament. I would want to challenge the members of this House that, in the Fourth Parliament, the most important duty that we have to do is to go down again and make sure that the laws that we are passing in this House are being implemented on the ground. I think this is a core issue of our work that we should be doing as well, and it is a bigger challenge. It boils down to the capacity that we have to build around the committees. It boils down to the human and financial resources that we have to give to both Houses so that they can be in a position to do that particular work. I think that is the biggest challenge to all of us as we prepare to come back for the Fourth Parliament.

In terms of oversight, you are aware that we have done quite a number of things, including Taking Parliament to the People, as we have been discussing, site visits and the public meetings that we have been holding. As the National Council of Provinces we have been doing the follow-ups through our committees. We introduced, during the time of hon Windvoël, the provincial weeks which proved to be very, very effective, because we then go back to our provinces, interact with our leadership and, together with the provinces, go out to do the oversight function. I think that has been very, very critical, and I want to congratulate the hon Windvoël for having come up with that particular suggestion. [Applause.]

On the question of the Intergovernmental Fiscal Review, let me once more congratulate the hon Tutu Ralane. The action that he has taken was very bold, to call us together in a workshop - with our colleagues in the provinces - to come and have a deep introspection on the financial aspects of how the provinces are spending in terms of their trends. I want to say congratulations. That, together with the Minister, by the way, conducting that particular workshop, is what we should be doing, and I think we should gallop a little bit in the Fourth Parliament in tracing the expenditure trends of the provinces.

Through outreach programmes, we were able then to pay attention to some of the key service delivery issues, for example social transformation, economic transformation, safety and security, governance, and local government service delivery. These issues were always on our agenda, including our visits to provinces in terms of the oversight.

In the public participation sphere, we facilitated public participation through programmes such as the one I have just mentioned – Taking Parliament to the People – introducing a follow-up to public meetings and presenting the aspect of public involvement during the provincial weeks. The overall challenge we are facing in respect of public participation is to ensure that the public participation serves as a vehicle for the involvement of communities in matters of governance that affect them on an ongoing basis. This is the challenge that we are facing.

We, as the National Council of Provinces, have engaged in a lot of international activities. You will remember that, since two years ago, we have introduced a system of bilaterals between the National Council of Provinces and the second Houses on the continent. For example, this term we have done two countries on the continent. We have done the Republic of the Congo, and we have done Rwanda as well. The NCOP has proved to be there to assist. We were actually requested by Congo to assist them with setting up their second House, and that is precisely what we would like to do. We would like to assist our colleagues on the continent.

However, there is a need to improve capacity support for international engagement by providing research support to members and by monitoring the implementation of international agreements.

In terms of the special projects, you would understand that, ladies and gentlemen, or hon members, we have completed three very important projects during this term of Parliament: the 10th anniversary summit, which was held in 2007; the institutional memory, which was published in the form of a documentary; and the book that we have published – you were there and have the book. We are now finalising the last project, which is the study on Taking Parliament to the People. We hope to deliver it to you before the elections. If we can’t, it will be delivered during the first term of the Fourth Parliament. We are actually meeting next week Monday to go through the first draft of this study, because when we come back, we want to say: What has been achieved by Taking Parliament to the People? What can we do to improve it, so that it becomes even more effective and gives more assistance to the people that we are serving here at this level?

With regard to the study, we are soliciting the views of the people in the provinces and all the stakeholders, and that is what the first draft is containing. During the 10th anniversary, you would remember the summit raised quite a number of issues, which I think are very critical issues that we have to look into. One of the issues is the question of the size of the National Council of Provinces. I can already tell this House that, right now, this is receiving positive attention. We will be able, very soon, to increase the size of this House. [Applause.]

Secondly, you would remember that there was an issue which was raised regarding the question of the participation of Premiers as the leaders of the special delegates to the NCOP. It is an ongoing issue that we are still discussing. Last night I addressed the media on all of these issues, and we had an intense debate with the media, because it was an informal discussion and there were 25 newspapers that had actually attended this discussion last night.

The other issue that we have deliberated on is the question of the Second Rotating Deputy Chairperson. The question that we are raising is whether or not this position is necessary. Now, these are some of the things .In my view, I think this position is not necessary. I think we should abolish it, and I think we should move with speed. That is the recommendation I will put to the Council.

There are a few challenges that we are faced with that I want to sketch for the House quickly. The challenge that the National Council of Provinces is facing now is a role for organised local government. How can we, together, really make Salga participate in the National Council of Provinces? We are aware that they are not fully participating, and we know the problems they have raised: They have part-time councillors in most instances, and therefore, they cannot participate fully; and they say our system is too clogged. We are too fast for them at times so we finalise the Bills before they can make the actual input that they would like to make with regard to the Bills. This is a discussion that we should perhaps begin to deliberate in order to see how we can deal with it.

The second challenge is the oversight function in the sense that we need to build capacity in our committees, because, when you do this oversight function, you must be in a position to track what it is that we have achieved. What is it that we have done? What is it that we have not followed up on? We don’t have a tracking mechanism in between to alert the chairperson of the committee and the committees themselves to say: “One, two, and three are done. Tick it off. We are happy about those things, but one, two, three, and four have not been done. These are the things that we have to carry on doing.”

We have to increase the research capacity as well. We shouldn’t be depending on the departments to do the research for us and give the research to us. Then there is no oversight function. We should be independent and be able to do these things ourselves and not depend on them. We are actually now restructuring the legal service into what we now want to call it, the constitutional and legal section, so that it can begin to assist the committees in drafting even the Private Member’s Bills. They should assist you to draft them. Chair, I am finishing off. I am aware that my time has expired. The last two concern the formalisation of the legislative sector. How do we work together with the provinces and strengthen it together?

Lastly, scrutiny of the legislation by the presiding officers becomes very important. So, I think that the 2009 programme has been very successful, and it couldn’t have been successful without all of you implementing it. I want to thank you very much for doing that. Thank you very much. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

  CONSIDERATION OF REQUEST OF MINISTER OF ENVIRONMENTAL AFFAIRS AND   TOURISM FOR RATIFICATION BY PARLIAMENT OF EXCLUSIONS FROM COASTAL PUBLIC   PROPERTY, THE CONFINED PORT AREAS, IN TERMS OF SECTION 27(4) OF NATIONAL
  ENVIRONMENTAL MANAGEMENT: INTEGRATED COASTAL MANAGEMENT ACT, 2008

Rev P MOATSHE: Chairperson and hon members, section 27(4) of the National Environmental Management: Integrated Coastal Management Act, Act 24 of 2008 allows the Minister to request for the ratification of Parliament, and both the portfolio committee and the select committee. Therefore, the Minister requests for the exclusion of port areas from coastal public property in terms of this section. The Select Committee on Land and Environmental Affairs has ratified this request and puts it before this House for agreement. [Applause.]

Debate concluded.

Question put: That the request of the Minister be ratified.

IN FAVOUR: Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

ABSTAIN: Eastern Cape, Free State.

Request accordingly ratified in accordance with section 65 of the Constitution.

The HOUSE CHAIRPERSON (Mrs M N Oliphant): Hon members, today is our last sitting before the elections. Therefore, I will now allow an opportunity for farewell speeches because some of us will come back and some of us won’t. But I think it will be a blessing if all of us can come back.

                          FAREWELL SPEECHES

The CHAIRPERSON OF THE NCOP: Chairperson, thank you for the last opportunity to speak in the Third Parliament. Somebody said to me yesterday evening that I cannot plan for not coming back and that I must always plan for coming back. I do not know what he meant by that. I am still trying to analyse that statement, but the Chairperson has already indicated that some of us may not come back and some of us may come back.

I would like to take this opportunity to thank the Deputy Chairperson of the NCOP, hon Peggy Hollander, for the support she has given me and the institution for the period of five years. Thanks to the Chairpersons, hon Mildred Oliphant and hon Tsietsi Setona. I am always battling to pronounce his name. They have done outstanding work in supporting the presiding officers in making this institution function better and more effectively.

I would like to take this opportunity to thank the former Chief Whip, the hon Windvoël, who played a very important role in assisting me as a presiding officer of this Council and other presiding officers. He did an outstanding job. I want to thank you very much for the period you have served. I also want to thank the current Chief Whip, the hon Nosipho Ntwanambi, and all the Whips that work with her to make the programme of this institution very effective and to deliver the services that this House is expected to deliver in terms of the Constitution.

I would also like to take this opportunity to thank all chairpersons of committees. I thank all the members of this Parliament who belong to different committees. To a certain extent, I also want to thank all political parties. [Applause.] Although we come as a single delegation from provinces, we do have our political parties. Thank you very much for the support you gave to this House and your provinces. I think we have delivered. We have done outstanding work as the NCOP within this five-year period. I don’t doubt the work we have achieved in the institution. [Applause.] I thank you for your sacrifice, dedication, determination, energy, enthusiasm and everything you have done. This is the most wonderful team I have ever worked with in the past five years. I think we ended the term on a very high note, and that is what I expected. I am very happy in my heart. I can go home and sleep peacefully because we have delivered as the NCOP. [Applause.]

I would like to thank the staff of the NCOP for the wonderful work they have done - the Table staff and everybody in the NCOP. I think you have done a sterling job in supporting us. Without you we could not have achieved the work we have done. [Applause.]

I have also been tasked to say to the committees, which have been very energetic in going back and visiting provinces and doing oversight functions under the good leadership of the chairpersons, that we noticed the results of the work you have done on the ground. Thank you very much. You are outstanding people. [Applause.]

I want to thank this institution for entrusting me and my organisation, the ANC, with this responsibility as the Chairperson of the Council. I have been elected by all of you to serve you. Thank you very much that you did not elect me and then chase me away thereafter. Instead, you supported me all the way until I finished my term. I wish to thank you very much. Goodbye! [Applause.]

The HOUSE CHAIRPERSON (Mrs M N Oliphant): Thank you, hon members. I hope there will be no complaint that you are hungry. Mr A WATSON: Chairperson, I am sorry that I have do this, but I have to start my speech on a bit of a sad note. It is indeed sad that we have to end the year with both the Secretary of Parliament and the Secretary of the NCOP under suspension. It is in reality symptomatic of the entire ANC administration all over our beautiful South Africa.

And you will remember that I have warned from this podium on many occasions that the administration of Parliament has usurped far too much power for themselves and that the powers of Parliament belong with the duly elected politicians.

Now I could use my three little minutes to tell you how to rectify the matter, Chairperson, but that will not be necessary at this very late stage, because we will do it ourselves as the DA after the elections. [Interjections.]

The boasting of the Minister for Provincial and Local Government will probably also be his famous last words, because the tide is changing and the voters of South Africa are waking up to the reality. [Interjections.] And all of you should also wake up: The scoreboard will look very different this time around.

But enough of the serious stuff. Let me say that looking back over the past five years, it has mostly been a very, very pleasant experience indeed. I have had the privilege of also serving in the National Assembly, and I must admit, Chair, that the collegiality and the dynamics of this smaller House are better by far. So those of you who are going there: bad luck for you! [Laughter.]

I agree with hon Le Roux that much of this pleasant atmosphere must be attributed to the exceptional leadership of the Chairperson, Mr M J Mahlangu, and I wish to thank him and his entire team on behalf of all the DA permanent delegates. We wish you well in your future endeavours, whether it be somewhere else or back here, Sir.

It has also been quite an experience working with all my other colleagues in this House. Of course, all the experiences were not pleasant at all times, because the majority of you unfortunately are programmed by your parties’ ideologies and that does not mix so well with the free-thinking, liberal spirit that you find among my DA colleagues and I. [Interjections.] I will remember the witty interactions, and the very good friendships.

Let me end by also thanking my colleagues in the DA for the wonderful team I have had. They have had to cope with me, and now I will have to cope with myself. But I thank my wonderful team for their zeal in their daily tasks, and also for their endeavours. It has been an inspiration to me, and the personal support that I have had from them all has made my task lighter and my life brighter. Thank you, my friends. May all of you be blessed by the Heavenly Father and may all of your dreams come true. May I end with something from long ago? There was a radio station called LM Radio; some of the older people will remember it. The most famous guy on LM Radio was a man called David Davies. You know, those days the radio would close down at twelve o’clock - or was it ten o’clock, I can’t remember. But in those days he ended his radio programme by greeting everybody by saying: “And now to you, and to you, and especially to you, all the best for the future!” Stay well, God bless you all. Thank you, Chairperson. [Applause.]

Mrs J N VILAKAZI: Chairperson and colleagues, I take this opportunity to thank you all for the good work and the good team spirit enjoyed during our term of work, 2004 to date. I thank the Almighty God, who has been with us through this time. I have already started my journey to retirement from Parliament. [Interjections.] I will miss you all. Keep up the good work.

Ndlelanhle, mpilonhle kini nonke. Nivote kahle futhi nibuye kahle noma abanye baliwe wuhla lwabazongenela ukhetho. [Uhleko.] Ngizoba nani nonke. [Farewell, and keep well to all of you. Vote well and come back safely even though some members are not on the candidates list. [Laughter.] I will be with you all.]

I will be with you all. [Applause.]

The HOUSE CHAIRPERSON (Mrs M N Oliphant): Order! I now call hon K B Toni. Order, please. I hope members will behave, because it is his maiden speech.

Mr K B TONI: Chair, it is … [Interjections.]

The HOUSE CHAIRPERSON (Mrs M N Oliphant): Order! Hon members, can you please behave and listen to the member?

Mr K B TONI: Chairperson, hon members, we have reached the end of another session and it is perhaps the last time that this House meets prior to the end of its term.

Looking back upon the past 15 years, this House has engaged in important work and achieved many milestones. For such achievements as we have attained, the management of Parliament and parliamentary staff members played a pivotal role behind the scenes to ensure that we perform our constitutional obligations. I have only recently been sworn in, but from discussions it is clear that this Chamber plays a very important role in advancing the Constitution. It would appear that we still need to do many things to convey the role of this House.

Chair, in conclusion, one hopes that in the new term there will be rapid progress to ensure that this House expands its oversight role as a checks and balances mechanism in respect of the National Assembly, and its role in representing the views of the provinces, and also its role in encouraging public participation in the work of Parliament. May God bless you. Thank you. [Applause.]

The CHIEF WHIP OF THE COUNCIL: Chairperson, hon members and my hon comrades, in this last sitting of the National Council of Provinces in the Third Parliament of our country, I, in my capacity as the Chief Whip, consider it appropriate, but also an honour and a privilege to refer briefly to the reasons for the existence, development and accomplishments of the NCOP since its inception, and more specifically over the past five years.

This institution is also referred to as the upper House of Parliament and represents South Africa’s provinces to ensure that provincial interests are taken into account in the national sphere of politics. It does this mainly by participating in the national legislative process and by providing a national forum for consideration of issues affecting the people in the provinces.

It contributes to effective government by exercising oversight over the national aspects of provincial and local government. It also ensures recognition of provincial and local concerns in national policy-making and that the three spheres of government function effectively together.

In this regard, I would like to agree with the late hon Joyce Kgoali, a former Chairperson of the NCOP, when she said, and I quote:

The NCOP, provinces and municipalities are the cutting edge of the national programme to build a better life for all.

Since the inception of the NCOP in 1997 in the new dispensation, which marked a clear break with the old Senate that preceded it, it has evolved into a key institution that is tasked with safeguarding South Africa’s democracy. It serves as a sanctuary for the protection of the needs and rights of the people of South Africa in the provinces.

During his tenure as Deputy President of South Africa, the one who is going to be the President of this country, come April 22, hon Mr Jacob Zuma said:

No other institution in the country can showcase our beautiful and rich diversity as a nation quite as succinctly as the NCOP. I am sure that the authors of our Constitution would be very pleased to see how their noble intentions are being realized. From giving life to the principle of co- operative governance to giving a powerful voice to the masses of our people in the various provinces and local areas, we are, through the efforts of the NCOP, building and consolidating a true participatory democracy. I want to say that we’ve seen the good strides made by the NCOP in many areas in the past. The Multiparty Whips’ Forum is one of the important mechanisms and key instruments in ensuring multiparty democracy in the NCOP. It does this by affording political parties a platform to share ideas on measures to strengthen the functioning of the NCOP, while it contributes immensely to multiparty co-operation.

Despite having taken over the management of the Whippery only a year ago, I am convinced that it has an important role to play in supporting the NCOP in meeting its constitutional mandate of representing the country’s provinces. As a passionate member of the ANC, I am convinced that I am a very passionate member of this House and a citizen of this country. I therefore wish to thank all the members of my party who have given me the strength to serve in this position, particularly during the past 18 months. Being in this position has not been easy.

The opportunity to serve as the Chief Whip was a great honour for me. I also express my profound appreciation to the hon M J Mahlangu, the Chairperson of the NCOP, the Deputy Chairperson Mrs Hollander, and the two House Chairpersons. Of course, I’m also grateful to the former Chief Whip, Comrade V V Windvoël, for the work he had done before me.

Lastly, I want to conclude by saying …

… ngomhla wama-22 kuTshazimpuzi, ngentsimbi ye-12 emini maqanda, kuza kucaca ukuba ngubani ophetheyo. Ngelo xesha uMsholozi sakube simlungiselela ukuya eMahlambandlovu.

I-ANC iza kuphatha, iphathe; ibuye iphathe. Ndifuna ke ukutsho kuwo onke amalungu ale Ndlu ukuba, bekumnadi ukusebenza nani nonke. Ngelishwa, akukho waziyo ukuba ngubani obuyayo; ingubani ongabuyiyo. (Translation of isiXhosa paragraphs follows.)

[… on 22 April, at twelve midday, we will know who is in charge. At that time we will be preparing to take Msholozi to Mahlambandlovu.

The ANC shall govern, govern and govern again. I would like to say to all the members of this House that I enjoyed working with all of you. Unfortunately, no one knows who is coming back and who is not.]

Woza mhla ka-22 kuMbasa, abanye bazowukhomba umuzi onotshwala. [Come 22 April, others will face the consequences.]

Malibongwe! [Ihlombe.] [Praise! [Applause.]]

The HOUSE CHAIRPERSON (Mrs M N Oliphant): Order, please!

Ngifisa ukubethelela isipikili kulokhu okushiwo uSihlalo woMkhandlu wale Ndlu ukuthi amalunga ale Ndlu abenokuzimisela noma ngesinye isikhathi ebebanga umsindo. [Uhleko.] (Translation of isiZulu paragraph follows.)

[I would like to accentuate what the Chairperson of this House said, that the members of this House were obstinate even though at times they were noisy. [Laughter.]]

I hope it’s because you were enjoying the debates in this House and that it is also the way you have behaved in the committees when sharing the ideas and views of different provinces. I believe that, whether or not you are coming back, you must be proud of yourselves.

With those words I want to make an announcement: Immediately after we have adjourned, there is going to be a photo shoot just outside the NCOP and the Chairperson has invited all of us to have a working lunch.

I am not sure why, but the Chairperson will explain why he is calling it a working lunch. I believe that you still have responsibilities as the NCOP, because you will be members of the National Council of Provinces until the legislatures are sworn in after elections. Therefore, you still have responsibilities and that is why you are going to have a working lunch. That concludes the business of the day.

The Council adjourned at 13:37. ____ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

                     THURSDAY, 19 FEBRUARY 2009

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Assent by President in respect of Bills

   1) Mandating Procedures of Provinces Bill [B 8F – 2007] – Act No 52 of 2008 (assented to and signed by President on 18 February 2009).

   2) National Road Traffic Amendment Bill [B 39B – 2008] – Act No 64 of 2008 (assented to and signed by President on 15 February 2009).

   3) Criminal Procedure Amendment Bill [B 42D – 2008] – Act No 65 of 2008 (assented to and signed by President on 16 February 2009).

   4) Judicial Matters Amendment Bill [B 48B – 2008] – Act No 66 of 2008 (assented to and signed by President on 15 February 2009).

   5) National Qualifications Framework Bill [B 33D – 2008] – Act No 67 of 2008 (assented to and signed by President on 15 February 2009).

2. Bills passed by Houses – to be submitted to President for assent

(1)    Bills passed by National Assembly on 19 February 2009:


      a) Money Bills Amendment Procedure and Related Matters Bill [B
         75D – 2008] (National Assembly – sec 75).


         b) National Environmental Management: Protected Areas Amendment
            Bill
         [B 67B – 2008] (National Assembly – sec 75).

      c) Films and Publications Amendment Bill [B 27F – 2006] (National
         Assembly – sec 75).


      d) Financial Management of Parliament Bill [B 74B – 2008]
         (National Assembly – sec 76(1)).

National Council of Provinces

The Chairperson

1. Message from National Assembly to National Council of Provinces in respect of Bill passed by Assembly and transmitted to Council (1) Bill passed by National Assembly and transmitted for concurrence on 19 February 2009:

   (a) Western Cape Inherited Debt Relief Bill [B 6 – 2009] (National Assembly – sec 77).

     The Bill has been referred to the Select Committee on Finance of
      the National Council of Provinces.
   

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Trade and Industry

 a) Government Notice No R. 832 published in Government Gazette No
    31302 dated 8 August 2008: Withdrawal of the Compulsory
    Specification for Articles Marked E.P.N.S. in terms of the
    Standards Act, 1993 (Act No 29 of 1993).

 b) Government Notice No 939 published in Government Gazette No 31389
    dated 5 September 2008: Standards matters in terms of the Standards
    Act, 1993 (Act No 29 of 1993).


(c)     Government Notice No R. 1298 published in Government Gazette No
    31658 dated 5 December 2008: Proposed amendment of the compulsory
    specification for Motor Vehicles of Category M1, in terms of the
    Standards Act, 1993 (Act No 29 of 1993).
(d)     Government Notice No R. 1299 published in Government Gazette No
    31658 dated 5 December 2008: Proposed amendment of the compulsory
    specification for Motor Vehicles of Category N1, in terms of the
    Standards Act, 1993 (Act No 29 of 1993).


(e)     Government Notice No R. 1392 published in Government Gazette No
    31735 dated 24 December 2008: Proposed amendment of the compulsory
    specification for Motor Vehicles of Categories 03/04, in terms of
    the National Regulator for Compulsory Specifications Act, 2008 (Act
    No 5 of 2008).


(f)     Government Notice No R. 1393 published in Government Gazette No
    31735 dated 24 December 2008: Proposed amendment of the compulsory
    specification for Motor Vehicles of Categories M2/3, in terms of
    the National Regulator for Compulsory Specifications Act, 2008 (Act
    No 5 of 2008).


(g)     Government Notice No R. 1394 published in Government Gazette No
    31735 dated 24 December 2008: Proposed amendment of the compulsory
    specification for Motor Vehicles of Categories N2/3, in terms of
    the National Regulator for Compulsory Specifications Act, 2008 (Act
    No 5 of 2008).


(h)     Government Notice No R. 1395 published in Government Gazette No
    31735 dated 24 December 2008: Proposed amendment of the compulsory
    specification for Motor Vehicles of Categories 01/02, in terms of
    the National Regulator for Compulsory Specifications Act, 2008 (Act
    No 5 of 2008).


(i)     Government Notice No R. 1396 published in Government Gazette No
    31735 dated 24 December 2008: Proposed introduction of a compulsory
    specification for Single-Capped Fluorescent Lamps, in terms of the
    National Regulator for Compulsory Specifications Act, 1993 (Act No
    29 of 1993).


(j)     Proclamation No 33 published in Government Gazette No 31391
    dated 1 September 2008: Commencement of Standards Act, 2008 (Act No
    8 of 2008).


(k)     Proclamation No 34 published in Government Gazette No 31391
    dated 1 September 2008: Commencement of the National Regulator for
    Compulsory Specifications Act, 2008 (Act No 5 of 2008).

                     THURSDAY, 26 FEBRUARY 2009

ANNOUNCEMENTS

National Council of Provinces

1. The Chairperson

   1) Membership of Committees

   The following changes have been made to the membership of Committees:

   Select Committee on Labour and Public Enterprises Appointed: Mcgluwa, Mr J J Discharged: Ntembe, Ms B L

   Select Committee on Economic and Foreign Affairs

   Appointed: Mcgluwa, Mr J J Discharged: Ntembe, Ms B L

   Select Committee on Education and Recreation

   Appointed: Toni, Mr K B Discharged: Qikani, Ms A N D

   Select Committee on Social Services

   Appointed: Toni, Mr K B Discharged: Qikani, Ms A N D

(2)    Referral to Committees of papers tabled

      1. The following paper is referred to the Select Committee on
         Social Services for consideration and report:


         (a) Regulations made in terms of the Children’s Act, 2005 (Act
              No 38 of 2005), submitted in terms of section 3(3) of the
              Act for approval by the National Council of Provinces.

TABLINGS

National Council of Provinces

1. The Chairperson

   1) Financial and Fiscal Commission submission to the 2009 Division of Revenue Bill.

   Referred to the Select Committee on Finance for consideration.

                     MONDAY, 6 MARCH 2009
   

COMMITTEE REPORTS

National Council of Provinces

1. Report of the Select Committee on Finance on the Western Cape Inherited Debt Relief Bill [B6 - 2009] (National Assembly - Section 77), dated 5 March 2009

The Select Committee on Finance, having considered the Western Cape
Inherited Debt Relief Bill [B6 - 2009] (National Assembly - Section 77)
referred to it and classified by the Joint Tagging Mechanism as a
Section 77 Bill reports that it has agreed to the Bill.

                       TUESDAY, 10 MARCH 2009

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Safety and Security

   (a) The Report of the Independent Complaints Directorate on Domestic Violence for the period January-June 2008, tabled in terms of section 18(5)(c) of the Domestic Violence Act, 1998 (Act No 116 of 1998).

2. The Minister for Justice and Constitutional Development

   (a) Report on the suspension of Ms T C Oliphant, an additional magistrate at the Wynberg, Western Cape, in terms of section 13(4)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).

   (b) Progress report on the Inquiry into allegations of misconduct of MsA Bacharam, dated 16 February 2009, in terms of section 13(3)(f) of the Magistrates Act, 1993 (Act No 90 of 1993).

3. The Minister of Water Affairs and Forestry

   (a) Report and Financial Statements of Albany Coast Water for the year ended 30 June 2008, including the Report of the Independent Auditors on the Financial Statements for the year ended 30 June 2008.

   (b) Report and Financial Statements of BushbuckridgeWater for the year ended 30 June 2008, including the Report of the Independent Auditors on the Financial Statements for the year ended 30 June 2008.

COMMITTEE REPORTS

National Assembly and National Council of Provinces

1. Report of the Ad Hoc Joint Committee for the Appointment of members to the NationalYouth Development Agency Board, dated 10 March 2009:

   The Committee placed adverts in national and provincial newspapers calling on members of the public to submit nominations, from 20 February until 06 March 2009, of persons to serve on the Board of the NationalYouth Development Agency. 173 nominations were received by the Committee.

   The committee considered the nominations on the 9 and 10 March 2009 and agreed that the following persons be shortlisted to be interviewed on the 12 and 13 March 2009:

   Mr V Sidali Mr EB Letsoalo Mr MW Thango Mr G Essop Mr VN Mbanga Mr S Nair Ms A Coetzee Ms N Ntanjana Mr PR Mnisi Ms N Moleko Mr MR Khumalo Mr L Marincowitz Mr O Sipuko Ms I Motau Mr LI Maile Mr S Khan Mr G Mackenzie Ms P Kadi Mr BR Buys Mr M Tyhali Mr FJ Slabber Ms M Tshabalala Ms P Makeleni Mr A Lungisa Mr Y Pillay Mr DD Adams

                   WEDNESDAY, 13 MARCH 2009
   

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Assent by President in respect of Bills

   1) Broadcasting Amendment Bill [B 72D – 2008] – Act No 4 of 2009 (assented to and signed by President on 6 March 2009).

   2) National Environmental Management: Waste Bill [B 39D – 2007] – Act No 59 of 2008 (assented to and signed by President on 6 March 2009).

National Council of Provinces

The Chairperson

1. Referral to Committees of papers tabled

(1)    The following paper is referred to the Select Committee on
    Security and Constitutional Affairs for consideration and report:


    (a)      Report in terms of section 13(4) (b) of the Magistrates
         Act, 1993 (Act No. 90 of 1993): Suspension of a magistrate: Ms
         T C Oliphant.


    (b)      Progress Report dated 16 February 2009 to Parliament in
         terms of Section 13(3) (f) of the Magistrates Act, 1993 (Act
         No. 90 of 1993): Inquiry into allegations of misconduct: Ms A
         Bacharam.

COMMITTEE REPORTS

National Council of Provinces

1. Second report of the Select Committee on Security and Constitutional Affairs on the Constitution Sixteenth Amendment Bill [B1-2009] (National Assembly –sec 74), dated 12 March 2009:

   The Select Committee on Security and Constitutional Affairs, having considered the Constitution Sixteenth Amendment Bill [B1-2009] (National Assembly – sec 74), referred to it, and having reported the Bill without amendments, further recommends that:-

   • As South Africa is a unitary state, moving from one province to the other should not affect any municipality negatively. • The Transitional Committee should be able to deal with the finer details, including administration and financial implications as has happened in the North-West. • Protocols should have clear, set time-frames for implementation and achievement of certain goals/events. • The Department should submit a report in writing on how they are going to handle this transitional period. • The Department should brief the incoming Committee members on the progress of the Transitional Committee within six months. • The NCOP needs to set up a strong oversight mechanism that is effective and on-going. It should not merely be called in when there is a problem but must receive regular reports on protocols and other arrangements, and to avoid unnecessary red tape and bureaucracy and should provide guidance to the Transitional Committee. • We call upon those affected communities to avoid destroying their own properties regardless of how strong they feel about a particular decision. • The Department should develop a policy to deal with border disputes in future. • Communities that are negatively affected by being placed under one province or the other against their wish and will, are free to demonstrate but are encouraged to do so responsibly.

   Report to be considered.

2. Report of the Select Committee on Security and Constitutional Affairs on the Constitution Sixteenth Amendment Bill [B1-2009] (National Assembly - sec 74), dated 12 March 2009:

   The Select Committee on Security and Constitutional Affairs, having considered the Constitution Sixteenth Amendment Bill [B1-2009] (National Assembly - sec 74) referred to it, reports that it has agreed to the Bill.

3. Report of the Select Committee on Local Government and Administration on the Cross-Boundary Municipalities Laws Repeal and Related Matters Amendment Bill [B3B-2009] (National Assembly – sec 75), dated 10 March 2009:

   The Select Committee on Local Government and Administration, having considered the Cross-Boundary Municipalities Laws Repeal and Related Matters Amendment Bill [B 3B – 2009] (National Assembly – sec 75)) referred to it, reports that it has agreed to the Bill.

4. First Report of the Select Committee on Finance on the Division of Revenue Bill [B4 – 2009] (National Assembly – sec 76), dated 12 March 2009

   The Select Committee on Finance, having considered the subject of the Division of Revenue Bill [B 4 – 2009] (National Assembly – sec 76), referred to it, and classified by the Joint Tagging Mechanism as a Section 76 Bill, reports the Bill without amendment.

5. Second Report of the Select Committee on Finance on the Public Hearings on the Division of Revenue Bill from 24 February to 3 March 2009, dated 12 March 2009

   Introduction

   The report deals with the hearings convened by the Select Committee on Finance on the Division of Revenue Bill [B4-2009], from 24 February to 3 March 2009.

   The following stakeholders were invited to make submissions on their respective allocations with the specific emphasis on the conditional grants: • Department of Agriculture • Department of Education • Department of Health • Department of Minerals and Energy • Department of Provincial and Local Government • Department of Sport and Recreation • Department of Transport • Department of Water Affairs and Forestry • Department of Arts and Culture • Department of Public Works • National Treasury • South African Local Government Association (SALGA) • Financial and Fiscal Commission (FFC)

To foster transparency and ensure smooth intergovernmental relations, section 214(1) of the Constitution requires that every year a Division of Revenue Act (DORA) determines the equitable division of nationally raised revenue among the three spheres of government. The Intergovernmental Fiscal Relations Act (1997) prescribes the process for determining the equitable sharing and allocation of revenue raised nationally. Sections 9 and 10 (4) of the Act set out the consultation process to be followed with the Financial and Fiscal Commission (FFC), including the process of considering recommendations made with regard to the equitable division of nationally raised revenue.

The 2009/10 budget was tabled amidst challenges of a global financial crisis and the deteriorating international environment, noted by the National Treasury to be significantly affecting South Africa’s growth prospects. In its reports tabled in Parliament the National Treasury projected that the economic growth would slow down to 1.2% of the Gross Domestic Product (GDP) in 2009.

The 2009 budget was framed by 5 objectives that guide government’s policy response over the medium term, namely to: a) protect the poor; b) build capacity for long term growth; c) sustain employment growth; d) maintain a sustainable debt level; and e) address sectoral barriers to growth and investment.

The total national budget for 2009/10 amounts to R738.5 billion, from which National Government is allocated R483.6 billion, provinces R231 billion and local government R23.8 billion over each of the medium-term expenditure framework (MTEF) period. These figures are inclusive of the debt service costs and the contingency reserve. The allocations take into account government’s spending priorities, the revenue-raising capacity and functional responsibilities of each sphere, and inputs from various intergovernmental forums and the recommendations of the FFC.

The explanatory memorandum of the Division of Revenue outlines Government’s priorities for the 2009 MTEF as follows: a) Enhancing the quality of education; b) Improving the provision of health care, particularly for the poor and to reduce infant, child and maternal mortality rates; c) Reducing the levels of crime and enhancing citizen safety; d) Expanding the built environment to improve public transportation and meet universal access targets in housing, water, electricity and sanitation; and e) Decreasing rural poverty by taking steps to raise rural incomes and improving livelihoods by extending access to land and support for emerging farmers.

CHANGES TO THE 2008 DORA

Technical changes have been effected on the Bill with a view to improving readability of the Act and different sections have been aligned to further facilitate the implementation of the provisions of the Act. Some of the technical changes effected to the Bill are discussed briefly in the paragraphs below.

Grants introduced in the 2008/09 financial year:

• The Agriculture’s Ilima / Letsema Projects  Grant  intended  to  boost
  food production by assisting previously  disadvantaged  South  African
  farming communities to achieve increase in agricultural production.  A
  total of R650 million over the MTEF period is allocated for this grant
  of which R50 million is for the 2009/10  financial  year.  A  transfer
  from the National Treasury in respect of this grant was only  done  to
  Northern Cape (R45 million) with the province  only  spending  R16,  8
  million of that total transfer as at 31 December 2008.


• The Overload control Grant aimed at preserving road infrastructure  by
  ensuring that overloading practices are significantly reduced. With  a
  three year life span,  the  grant  is  allocated  R10.069  million  in
  2009/10 and R11.038 million in 2010/11. The allocation for 2009/10  is
  divided between Gauteng (R5.034 million) and Limpopo (R5.035 million),
  while the 2010/11 allocation will  go  to  the  Eastern  Cape  (R5.519
  million) and Mpumalanga (R5.519 million). While the grant has been  in
  existence since 2008/09, no  transfers  were  made  from  national  to
  province in respect of this grant.

• The Sani Pass Grant aimed at developing road  infrastructure  projects
  to promote regional integration, development and connectivity  between
  neighbouring states. This grant ends in the 2009/10 financial year. An
  amount of R34.3 million is allocated for  2009/10.   No  spending  has
  occurred on this grant.


• The Agriculture Disaster  Management  Grant  which  is  allocated  R60
  million in the 2009/10  financial  year  has,  as  its  objective,  to
  relieve farmers from the effects of drought / veldfires, cold  spells,
  hailstorms and flood in identified areas. This grant ends on 31  March
  2010. While there were no amounts transferred  from  national  to  the
  provinces in respect of this grant  for  the  financial  year  2008/9,
  Mpumalanga spent R8.1 million, Limpopo R60.1 million, North West  R6.4
  million, Free  State  R24.6  million  and  Western  Cape  spent  R17.3
  million.

Five new grants introduced in the 2009/10 budget:

• A new type of  conditional  grant,  Expanded  Public  Works  Programme
  Incentive. This provincial grant has been allocated R1.4 billion  over
  the MTEF period. Payments in respect of this grant will be subject  to
  meeting threshold and performance targets.
• The Public Transport Operations Grant is allocated R11.5 billion  over
  the MTEF period for subsidisation of commuter bus services.
• The  Technical  Secondary  Schools  Recapitalisation  Grant  has  been
  allocated R280 million  for  equipment  and  facilities  at  technical
  schools.
• The Health Disaster Response (Cholera) Grant has  been  allocated  R50
  million.
• The Housing Disaster Relief Grant is allocated R150 million to respond
  to natural disasters.

Grants to be effected in the 2010/11 financial year:

•  The  Technical  Secondary  Schools  Recapitalisation  Grant  will  be
  available to provinces from  2010/11.  This  grant  amounting  to  R80
  million in 2010/11 and  R200  million  in  2011/12  will  provide  for
  equipment and facilities in technical high schools.

Gautrain Rapid Rail Link Project

• An amount of R4.2 billion has been allocated to the  Gauteng  Province
  for the implementation of the Gauteng Rapid Rail Link Project, subject
  to a loan agreement being entered into between the Minister of Finance
  and the Premier of Gauteng as well  as  to  the  province’s  continued
  compliance with the loan agreement once entered into.

The differentiation approach

Large scale migration is a common phenomenon in South Africa where over a third of the population, according to the National Treasury’s 2009 Budget Review, currently resides in the nine largest urban areas, the six metropolitan municipalities (Ethekwini, Nelson Mandela Bay, Tshwane, City of Johannesburg, City of Cape Town and Ekurhuleni) as well as Mangaung, Msunduzi and Buffalo City municipalities. This trend is expected to increase in the years ahead. The National Treasury reports that these municipalities face a dual challenge of keeping pace with demand for infrastructure expansion and maintenance while serving the needs of a growing population.

The 2009/10 Municipal Infrastructure Grant (MIG) has been amended to take into account the differences between large urban and smaller rural municipalities. The grants will target the following areas respectively for the cities and for rural municipalities:

Cities- Integrated planning; Effective leveraging of resources to eradicate backlogs; Improving performance in the development of integrated human settlements; and Effective asset management in line with Municipal Finance Management Act (MFMA) requirements

       This grant will be phased in starting with the six  metropolitan
       municipalities in 2009/10 and bringing the 21 large cities  over
       the next two years.

Rural- Addressing infrastructure needs for basic services Rural development

Other changes to the Bill include: the conversion of schedule 7 grants to schedule 6 grants during the course of the year to prevent under-spending; duties relating to category C municipalities to ensure proper flow of funds between category C and B municipalities for providing basic services; and mechanisms added to deal with the implementation of re-demarcation of provincial and municipal boundaries which come into effect during 2009/10 e.g. Merafong. From the 2009 budget the general fuel levy will be shared between national government and metropolitan municipalities. This will serve as an appropriate replacement for the Regional Service Council (RSC) levy.

In order to facilitate a smooth transition from the RSC levy system to sharing of the general fuel levy system, and to prevent any drastic changes to municipal revenues, implementation will be phased in over a three-year period. Full implementation will be achieved by 2012/13.

FFC RECOMMENDATIONS MADE IN JUNE 2008 AND THE RESPONSE BY GOVERNMENT

FFC Recommendations

In line with section 214(2) of the Constitution and the Intergovernmental Fiscal Relations Act (1997), the FFC tabled its recommendations on the 2009/10 Division of Revenue to Parliament in June 2008. The recommendations were divided into three parts: Part A: dealt with national-provincial fiscal relations matters relating to financing of basic education and health care, transport and bottlenecks hampering housing delivery; Part B: dealt with local government fiscal relations matters pertaining to augmenting local government revenue, electricity pricing, generation and distribution and World Cup 2010 transport infrastructure; and Part C: dealt with intergovernmental data issues.

The Division of Revenue Bill [B4-2009] (section 76(1)) outlines the FFC recommendations as well as the responses by government as indicated below:

PART A: NATIONAL-PROVINCIAL FISCAL RELATIONS

The financing of basic education Proposal on the re-ranking of schools

The FFC recommended that government should review the method used to inform the national quintile ranking of schools. Rather than classifying schools according to the ward or neighbourhood in which they are located, the method should take into account the socio-economic circumstances of the learners (with particular reference to inequality and poverty).

Government agrees with the FFC recommendation. The Department of Education intends to, in addition to the two poorest quintiles (1 and 2), phase in the no-fee schools policy to quintile 3, which will extend coverage to 60% of schools. The DoE is also working on a policy to provide assistance to schools up to quintile 5 that accommodate very poor learners.

Proposal on learner transport

The FFC recommended that national norms and standards for the provision of learners transport should be established. It added that this will be possible once the location of this function has been clearly demarcated between the national departments of Education and Transport. The FFC advised that this responsibility be clarified as a matter of urgency. In the interim, all provinces were to implement statutory provisions that ensured that learners were afforded equal access to education, irrespective of their province of residence and irrespective of whether they resided in rural or urban areas.

Government agrees with the FFC recommendation. The functional responsibilities with respect to learner transport are those of the Department of Education, which is responsible for the provision of scholar transport, while the Department of Transport is responsible for regulatory requirements with respect to all public transport. Government also notes that once the function has been clarified, scholar transport needs will be included in the integrated transport plans at local government level and aligned with the Public Transport Strategy.

The financing of health care

Proposal on fiscal performance of community health clinics sub-programme

The FFC recommended that, just as the 2008 DORA requires that indicative allocations to schools and hospitals and hospitals be gazetted with the tabling of provincial budgets, this practice be extended to clinics and other public health care facilities, as and when they fall under provincial control.

Government agrees with the FFC recommendation. Given the capacity constraints in certain provinces, attention is currently given to ensuring compliance with existing requirements with respect to indicative allocations for schools and hospitals.

Proposals on infrastructure for primary health care and health outcomes

The FFC recommended that greater emphasis be placed on improving the quality of service provided at clinics and funding the maintenance of existing primary health care facilities. It also pointed out that there remained a need for the construction of clinics in poorly serviced rural and urban informal settlements. The FFC recommends that the health component of the infrastructure grant to provinces (IGP) should be aligned to the roll-out of infrastructure through municipal infrastructure grants (MIG).

Government agrees that emphasis should be placed on improving the quality of health services provided at clinics. In this regard, government introduced in the 2008 Budget a special allocation for complementary infrastructure (water, sanitation and electricity) that targets primary health care facilities. In addition roads expenditure in provinces has increased sharply over the past few years and this trajectory is to be maintained over the MTEF.

Government also recognises that it is exceedingly important that outputs (staffing, equipment, drugs and medicines) be managed in a manner that ensures optimal outcomes.

Government agrees that appropriate coordination between provincial and municipal infrastructure grants will result in optimal outcomes from infrastructure investments. To address any misalignment where it exists, government introduced electricity, water and sanitation grants to ensure that municipal infrastructure supports health and the schools infrastructure programme.

Transport

The FFC comments on the classification and earmarking of roads

The FFC recommended that the process of classifying roads among national, provincial and local spheres of government should be accelerated in line with the classification framework already established. It added that the premiers of provinces with roads earmarked for incorporation into national road system should make the necessary applications without further delays. Government supports the recommendation that the road classification process be accelerated as proposed by the FFC adding that delays could lead to unintended consequences, such as underinvestment in the function or lack of proper maintenance.

PART B: LOCAL FISCAL RELATIONS

Augmenting local government revenue

FFC comments on replacements for the Regional Service Council (RSC) levies

The FFC recommended that, in view of the abolition of the RSC levy, which formed a significant source of municipal revenue, the replacement revenue source for municipalities should be a tax that enhances the fiscal autonomy and discretion of local governments; strengthens the accountability of local government regarding the administration and use of the proposed tax base; yields an adequate and buoyant revenue stream for municipalities in the face of cyclical instability; and maintains macroeconomic balance.

Government agrees with the FFC recommendation; however, the revenue capacities of individual municipalities need to be taken into account. A replacement revenue instrument that is purely in the form of a tax is unlikely to achieve the desired goal of enhancing local government fiscal autonomy for poorly resourced and rural municipalities. Government suggests that this will at best reproduce the existing inequalities in local government own-revenue generation.

As part of a package of reforms, the VAT zero-rating of municipal property rates and other VAT reforms were introduced in July 2006. Further reforms under consideration include the sharing of the general fuel levy and/or transfer duty in the medium term, a local business tax in the longer term as well as grants as a guaranteed revenue source for municipalities or categories of municipalities.

Electricity pricing, generation and distribution FFC comments on the restructuring of the electricity distribution industry

The FFC recommended that government should work with the National Energy Regulator of South Africa to put together a financing framework that dealt effectively with electricity pricing. It added that that government should address the potential loss of a crucial revenue source for local government as a result of the establishment of the Regional Electricity Distributors (REDs). The commission also pointed out the need to review legislation as it concerned the transfer of assets, the national pricing framework and the establishment of the REDs.

Government acknowledges that the slow pace of the restructuring of the electricity distribution industry is a concern and is currently addressing the outstanding policy and legislation issues, including asset transfer framework for transferring Eskom’s and municipalities’ assets to REDs. The asset transfer framework prescribed in the Municipal Finance Management Act (2003) deals with municipal asset transfers generally. Possible financial and other risks for Eskom and municipalities will also be addressed by government.

World Cup 2010 transport infrastructure

Recommendations of the financing of public transport

The FFC recommended that spending on public transport infrastructure for 2010 should be linked to broader city development plans. The commission proposes a better resourced public transport infrastructure and systems grant that must continue after the 2010 FIFA World Cup. Projects funded under this arrangement would be selected based on full appraisal of economic, environmental and social cost/benefit; and funding mechanisms to cover maintenance costs of constructed 2010 facilities should be developed.

Government supports the recommendation that projects funded through the public transport infrastructure and systems grant should be selected based on full appraisal of economic, environmental and social cost/benefit. The existing public transport infrastructure and systems grant will continue beyond 2010. The grant is aligned to the Public Transport Strategy. Projects funded under this grant are part of the integrated transport plans contained in Integrated Development Plans (IDPs) of municipalities.

Government is of the view that the costs relating to the maintenance of 2010 FIFA World Cup facilities should be provided by municipalities.

PART C: INTERGOVERNMENTAL DATA ISSUES

Performance monitoring framework

Proposal on Education

With respect to measuring the costs of basic education, the FFC recommended that to assess the pro-poor impact of school funding norms, the Department of Education should make publicly available and accessible the funding norms of no-fee schools in line with provisions of the 2008 Division of Revenue Act requiring indicative allocations by school. Provincial education departments should be enabled to report on budgets and spending on learner transport in line with the new economic reporting format. Government agrees with the FFC recommendation to make publicly available the funding norms for no-fee schools. The list of no-fee schools per province, per allocation and per location is published annually and is available on the department’s website.

COMMENTS OF THE NATIONAL DEPARTMENTS AND ENTITIES

During public hearings held by the Select Committee on Finance, departments and entities made the following comments on the Bill:

FINANCIAL AND FISCAL COMMISSION (FFC) Among strategic issues raised by the Commission were the following: • The DORA was becoming complex and voluminous. To this end the commission called for a comprehensive review of the Bill; • There were too many conditional grants; and • The commission proposed that all new Bills should go through a rigorous analysis before introduction.

The Commission also observed that there was a need to evaluate the Expanded Public Works Programme, from the time of inception to establish the number and quality of jobs created through the programme to date. To this end the Commission, while welcoming the attempts to address employment through government programmes, raised a flag of caution.

There were also concerns raised by the Commission in respect of the Bill as follows:

•  Government’s  responses  did  not  provide   details   on   how   the
  recommendations agreed upon would be implemented;
• The Commission recommended that the tax that  would  replace  the  RSC
  levy should be a good local tax. In its view, the fuel levy fell short
  of this requirement in that municipalities will   have  no  discretion
  over the base and rate of the tax

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION (SALGA)

SALGA in general welcomed the Bill as tabled and presented a set of comments in relation to both general and conditional grants.

The differentiated approach was, according to SALGA, needed in dealing with of the challenges of different categories of municipalities within different geographic contexts.

Expanded Public Works Programme (EPWP)

SALGA raised the following concerns about the nature of the EPWP wage incentives, the eligibility conditions and employment creation targets: • The proposed phasing in of EPWP targets and wage incentives included a minimum threshold target (based on 2008/09 achievements) which municipalities needed to first meet, before they could be eligible to receive the incentive. • These targets were retrospectively applied to all districts and municipalities resulting in many being disqualified for eligibility for the incentive.

SALGA therefore made the following proposal: • That all municipalities who have reported on EPWP be deemed eligible, in order to benefit in the wage incentive; and • That the incremental performance from a baseline determined by the incentive formula for 2009/10 be encouraged.

Replacement levy for the RSC Levy

SALGA made the following comment in this regard: • The fuel levy allocation was guaranteed with inflation adjustment for the next three years. From 2012/13 the allocation would be solely based on fuel sales per municipality. In the case of a decline in fuel sales, municipalities will receive less as there are no guarantees. • The reliance on fuel levy by metros could have unintended consequences (municipalities could promote use of private motor vehicles to boost fuel sales as opposed to promoting public transport and mechanisms to reduce road traffic). • SALGA noted that it was investigating a Local Business Tax as an alternative/appropriate replacement for the RSC levy. • It also requested that the challenge of unfunded mandates be looked into adding that functions that were not local government functions (in terms of the Constitution) were assigned to local government by way of sectoral legislation, without related adjustments to the fiscal framework – e.g. Disaster Management (Disaster Management Act) – Schedule 4 (A) of the Constitution.

DEPARTMENT OF AGRICULTURE

In addition to the Comprehensive Agricultural Support Programme (CASP) Grant and the Land Care Programme Grant, the Department also manages the Agriculture Disaster Management Grant with a R60 million allocation for the 2009/10 financial year and the Ilima/Letsema Projects Grant receiving R50 million in 2009/10.

The Committee raised the following areas of concern in respect of the report by the Department of Agriculture: • There a was need for the programmes of the department to harmonise with those of the Department of Land Affairs; • It was the view of the Committee that there were projects in Eastern Cape, Free State, North West and many other provinces that were in dire need of the department’s assistance; and • CASP and the Land Care Grant were grossly underperforming.

The Committee was of the view that some departments did not grasp the whole purpose of the MTEF and as such there were always cases where the plans were not ready resulting in under-spending. Furthermore, in the Eastern Cape some agricultural projects were initiated and funded by the Department of Social Development.

The Committee emphasised the need to ensure that people who received land as part of the land redistribution and restitution programmes were assisted to become commercial farmers.

The Ilima/Letsema Project was reported to be underway targeting 140 000 households to boost food production. The Committee requested the Department to furnish it with a list indicating where the 140 000 people were for purposes of conducting oversight.

Given that the provincial spending on the CASP was at 62% and 66% on the Land Care Grant at the end of January, the Committee was concerned that the department would under-spend. The Department noted that there was gradual improvement as it had strengthened its monitoring of the grant. A challenge reported by the Department was that procurement plans were not finalised on time by the provinces leading to under-spending.

The National Treasury committed to providing information indicating the extent to which the department was compliant with the provisions of the DORA in respect of submission of plans as outlined in the framework under processes for approval of business plan. Agriculture spending in provinces was about 7% of the total provincial spending. The National Treasury pleaded with the Committee not to reduce the allocations to the department as this would affect the areas that were in dire need of the department’s support. The Committee noted that it would compile a report for the incoming Committee on the performance of the Department of Agriculture.

DEPARTMENT OF EDUCATION

The Minister of Education approved implementation of revised minimum norms with effect from 1 April 2009 for the 2009/10 financial year as follows:

• Continued feeding of all learners in Quintiles  1,  2  and  3  primary
  schools
• Programme to be implemented in Quintile 1 secondary schools;
• Feeding must take place on every school day; and

Approved implementation over the two outer years of the 2009 MTEF is as follows: • Further implementation in secondary schools: Quintile 2 (2010/11); and Quintile 3 (2011/12) • Average meal cost to increase as follows: Primary: 2010/11 (R2, 10); 2011/12 (R2,30) Secondary: Increased to 1,75 times that of primary learner: 2010/11 (R3,80); 2011/12 (R4,10) Funds have also been allocated to provinces to assist with implementation cost for feeding in secondary schools

NEW GRANT - Technical Secondary Schools Recapitalisation Grant The preliminary allocations for the grant are as follows: 2009/10: R4,602 million 2010/11: R80 million 2011/12: R200 million The amount of R4,602 million allocated in 2009/10 will be used to assist the Department in the preparation phase to implement the grant. One hundred (100) schools are targeted over the MTEF period.

Recommendations of the Committee in respect of the Department of Education

The Committee recommends that the Department looks into the following: • Follow up on the R2.7 billion allocated to provincial departments of education in the 2008/9 financial year; • To ascertain that the money is allocated to the relevant recipient FETs by the provincial departments; • Follow up on the implementation of the school nutrition programme at secondary schools and to establish norms and standard in respect of the feeding mechanisms to ensure uniformity across the provinces; • To investigate the reasons for poor spending across the provinces The National Treasury was requested to assist in these matters.

DEPARTMENT OF HEALTH

The Department manages six conditional grants which make up approximately 95% of its total budget. These grants are: • HIV and AIDS • Forensic Pathology Services [Schedule 5] • Hospital Revitalization • National Tertiary Services • Health Professions Training and Schedule 4 Development • Health Disaster Response (Cholera) - New grant

The department reported the following variances in terms of amounts requested from the National Treasury and the amounts received in respect of the Comprehensive HIV and AIDS Plan:

2008/09 requested: R938 million and received R300 million 2009/10 requested: R1.4 billion and received R200 million 2010/11 requested: R2.1 billion and received R325 million 2011/12 requested: R1.7 billion and received R407 million

The Committee raised a concern about the underfunding of the health department in respect of HIV and AIDS and requested the National Treasury to note this concern since health was a national priority.

Furthermore it was pointed out that there needed to be clarity on what the implications were for underfunding in service delivery and whether there were any guarantees for compensation in cases where the department was underfunded.

In respect of health professionals working abroad, the department noted that its challenge was not in preventing the health workers from working outside the country, but whether the country was training enough health professionals for itself and for exporting to other countries.

National Tertiary Services Grant

Final allocations from the funding requests submitted for this grant resulted in the following funding gaps for the respective financial years listed below: • 2008/09 : R2.2 billion • 2009/10 : R2.6 billion • 2010/11 : R3.6 billion

Implications for under funding:

• The provinces had to use their provincial equitable share to fund the gaps;
• Under developed provinces did not achieve the goal of equity and capacity building; and
• The aim of relieving pressure on the costs related to tertiary services from bigger provinces was not achieved.

DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (DPLG)

While the department noted that some of its inputs had been incorporated in the Bill, it noted the inputs that were not included:

• Infrastructure grant for cities – the DPLG interpreted the new  clause
  (section 9(1) and (2)) in the Bill  to  mean  that  transfers  to  the
  provinces go through the DPLG vote but the  monitoring  and  reporting
  only to the National Treasury. This was contrary  to  the  mandate  of
  Vote 29 and duties of the national transferring officer (in this  case
  DPLG);
• The need to increase funds for municipal systems improvements;
•  Enabling  mechanisms  for  the  DPLG  to  report  to  Parliament   on
  performance of municipalities with regard to  conditional  grants.  It
  was reported that the current framework did not  enable  the  DPLG  to
  reallocate funds to municipalities which had the  capacity  to  spend;
  and
• Addressing MIG performance audit findings, as indicated below:
  The crafting of DoRA  in  relation  to  municipal  infrastructure  was
  restricting the DPLG’s role in the management of the grant.

Issues raised by the Auditor-General

•  The  DPLG  had  limited  powers  to  address   under-performance   by
  municipalities;
• Funds from conditional grants should be deposited into a separate bank
  account by each municipality to ensure proper monitoring; and
• Based on the above proposal, VAT reimbursements from SARS and interest
  received with respect to MIG funds should  be  ploughed  back  to  MIG
  projects by each municipality.

Recommendations of the Committee in respect of the DPLG

The Committee recommended that the DPLG and the National Treasury to look into: • the concerns raised by the DPLG and to ensure that greater effort was put into ensuring the well-being of poor or low capacity municipalities; • the funding for Municipal Systems Improvement Grant (MSIG) that was not growing; • section 9(2) of the Bill as it relates to the function of the DPLG (transferring national officer) with the view to ensuring that the department was given latitude to perform its role; and • A possible contradiction between section 9(1) and 15(6) as reported by the DPLG.

The two departments met and reported back to the Committee that a paragraph outlining reporting procedures to both the DPLG and the National Treasury would be inserted in the framework of the Bill. This would eliminate any uncertainties as to which department the provinces would or would not report to.

DEPARTMENT OF WATER AFFAIRS AND FORESTRY (DWAF)

In its submission the department raised the following areas of concern in respect of the Bill:

• There was limited direct control by sector departments  on  how  funds
  were spent and shortcomings  in  reporting  at  municipal  level  made
  control impossible;
• Essential planning was not mandated in the  Bill  and  this  prevented
  effective performance evaluation;
• The allocations  were  not  being  adjusted  in  accordance  with  the
  delivery performance of the Municipalities;
• The need for the differentiated approach in Section  23  where  cities
  were to  play  a  more  prominent  role  in  service  delivery  to  be
  investigated;
• More funding would be needed than was provided in order  to  eradicate
  backlogs,  especially  in  Regional  Bulk   Infrastructure   and   for
  eradicating rural backlogs; and
• Ring-fencing of water services budgets, especially in rural areas, was
  excluded from the Bill.

The department made the following recommendations:

• Reporting responsibilities of municipalities needed to be improved  to
  effectively measure performance;
• The possible role of DWAF and other national departments in supporting
  planning and implementation of water services  in  rural  areas  where
  municipalities lacked capacity needed to be investigated;
• A differentiated approach for smaller rural municipalities  needed  to
  be initiated;
• Section 11, 2(c) should require  the  submission  of  monthly  reports
  within 20 days after the end of each month;
• Section 18 (Integrated housing) should  include  the  same  monitoring
  conditions as Sections 11 and 16;
• Section 24 (b1) must include control measures  to  ensure  that  grant
  conditions were met and that proper planning took place.
• The MIG framework needed to be adjusted to  align  to  the  objectives
  attained in the DORA;
• The conditions and framework of the Bill needed to be revised to  take
  into account requirements for an  integrated  approach  towards  basic
  services;
• The initiation of the differentiated approach and the supporting  City
  Budget Forum; and
• Delivery through Water Services Authorities (WSA)  to  continue  where
  the capacity has been demonstrated.

The DWAF noted that it was best placed to deliver in low-capacity rural areas and the differentiated approach was silent on this. It added that the DOR Bill strengthened the role of cities in delivering services in their areas but was silent on areas/municipalities where there was no capacity to deliver.

DWAF believed it was best placed to support delivery in rural areas and could initiate processes to do so to ensure that funding was placed where there was capacity to deliver as demonstrated through bucket eradication.

DEPARTMENT OF MINERALS AND ENERGY

The department’s electrification allocations for the 2009/10 financial year were highest in the Eastern Cape at R234.3 million, Limpopo R139.7 million and R123.3 million in KwaZulu-Natal. These were the three provinces with the highest levels of electrification backlogs.

The Free State, Gauteng, Western Cape and Northern Cape had no schools electrification backlogs. R67 million was allocated to the Eastern Cape to address backlogs in the electrification of schools and clinics while R83 million was allocated to KwaZulu-Natal for the same purpose.

A concern raised by the Committee in respect of the Eastern Cape allocation was that the province was only targeting 50 schools for infrastructure development.

The department reported that it did not electrify mud schools.

Energy Efficiency Demand Side Management Grant (EEDSM)

The Energy Efficiency Demand Side Management Grant (EEDSM) received a total of R675 million over the MTEF period with R175 million of that being in the 2009/10 budget. The objective of the grant is to implement the EEDSM programme by providing capital subsidies to licensed distributors to address EEDSM in residential dwellings, community and commercial buildings in order to mitigate the risk of load shedding. The grant is also aimed at assisting municipalities with the development of capacity to deliver on EEDSM smart metering projects.

DEPARTMENT OF PUBLIC WORKS

Two conditional grants are managed by the Department of Public Works: the new Expanded Public Works Programme Incentive Grant for provinces and the Devolution of Property Rate Funds Grant which was introduced in the 2008/09 financial year.

Expanded Public Works Programme Incentive Grant The objective of the Bill is to increase the number of full-time equivalent (FTE) employment through labour intensive employment by provinces. This grant will continue until 2014. Its allocations over the MTEF are R151.4 million in 2009/10, R400 million in 2010/11 and R800 million in 2011/12.

The department explained that its target is to create 2 million FTE jobs for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014. The Committee was informed that the department was targeting municipalities that were receiving the municipal infrastructure grant (MIG).

The framework of the Bill outlines conditions that must be met prior to the incentive being paid out. Allocations to the provinces will be based on the targeted number of FTE’s for each province. The incentive will be paid out based on performance in the previous financial year. Furthermore the incentive amount from under-performing provinces will be re-allocated to performing provinces.

An example of some of the municipalities targeted by the department for the grant was in the Eastern Cape:

• Nelson Mandela Metropolitan Municipality • Amathole District Municipality • Tsolwana • Intsika Yethu • Emalahleni • Sakhisizwe • Chris Hani District Municipality • Ukhahlamba District Municipality • Alfred Nzo District

It was the view of the Committee that some of these municipalities did not need the incentive and that focus should be channelled towards assisting the low-capacity municipalities which were mostly rural. The Committee tasked the National Treasury, DPLG and the Department of Public Works to revisit the framework and look at how the 129 rural municipalities appearing in the AG’s report as low capacity municipalities can be incentivised through this programme. They were tasked to also revisit the targeted figure of only 45 municipalities. Devolution of Property Rate Funds Grant

This grant is aimed at enabling provincial accounting officers to be fully accountable for their expenditure and payment of provincial property rates. The process was reported to be fully implemented with transfers taking place according to set timeframes.

Some of the challenges expressed by the department in respect of this grant were: • Challenges relating to obtaining funding from the National Treasury to settle arrears in the Western Cape, KwaZulu-Natal, Mpumalanga, Eastern Cape and Limpopo; • Challenges with the reconciliation and validation of the claimed arrears; and • The department’s lack of capacity to conduct the validations.

The following amounts were allocated to the grant over the MTEF: R996.5 million in 2009/10 R1 096.2 million in 2010/11 R1 162 million in 2011/12

DEPARTMENT OF ARTS AND CULTURE

Libraries and the transformation thereof were critical among the responsibilities of the department and ensuring availability of materials in indigenous languages formed a part of that transformation process. The department was also involved in efforts of ensuring that indigenous languages were fused into the computer language in the country.

Priorities of the department for the 2009/10 financial year included: • Increasing books and reading material (especially for younger readers) • Upgrading and construction of library buildings • Appointment of more staff as well as extensions of contracts • ICT – New integrated library management system

Further priorities were: • The construction of a model library in Mdantsane, Eastern Cape; • Facilitation of the planning and building of two libraries in Khayelitsha, Cape Town; • Cooperation with correctional services regarding youth at risk; • Publishing in indigenous languages; and • Cooperation with Arts, Social Development regarding the production of tactile books.

In respect of conditional grants, the department reported that for the 2008/9 financial year, four provinces had applied for roll-overs. These were the Free State (R199 000), Limpopo (R5 478 000), Mpumalanga (R286 000) and Northern Cape (R683 000). The Free State and Mpumalanga had spent less than 50% of their allocations by the end of the third quarter while the department’s overall expenditure was at 68% by the end of the third term. The National Treasury noted that the figures presented were based on the funds transferred and not on the overall allocation. Taking into account the allocation would bring the spending down from 68% to about 58%.

Challenges reported by the department were: • high staff turnover; • delays in concluding Service Level Agreements with municipalities; • supply chain issues in relation to procurement and acquisition of books; and • Infrastructure related problems.

The Committee noted that, given the strong link between libraries and schools, the Department Arts and Culture needed to engage rigorously with the Department of Education to ensure that libraries were built while addressing the provision of reading material. Libraries, which are community structures, needed to be made accessible to communities.

THE DEPARTMENT OF SPORT AND RECREATION SOUTH AFRICA (SRSA)

This department is responsible for managing the Mass Sport and Recreation Participation Programme Grant. The framework of the 2008/9 Division of Revenue Bill outlined the following measurable outputs for the abovementioned grant: Siyadlala, Legacy and the Schools Sport Mass Participation Programme. Encompassed in the legacy output were the establishment and/or development of 300 sport specific clubs.

The 2009/10 Division of Revenue Bill outlines the purpose of the Bill as that of promoting mass participation within communities and schools through selected sport and recreation activities, empowerment of communities and schools in conjunction with stakeholders and that of the development of communities through sport.

The department was to receive an amount of R402.3 million in the 2009/10 financial year towards Mass Sport and Recreation Participation Programme Grant. It was reported that the following provinces had requested roll- overs of unspent 2008/9 funds: Limpopo (R2.3 million), Mpumalanga (R191 000), Northern Cape (R812 000) and Western Cape (R278 000). The Department reported the following challenges: • Slow spending by provinces; • Lack of capacity for monitoring and evaluation Sport and Recreation South Africa (SRSA); and • Lack of capacity in provinces

The department also reported that there was a slow turnaround in recruitment processes and that the vetting of applicants further delayed the process.

The Committee was concerned that the department did not report on club development, which was a common feature in the work of the department in the previous financial year. It appeared that this had been replaced with the Legacy Grant. The Committee was not satisfied with the department’s explanation that club development was encompassed in the Legacy. It added that during an oversight visit to Limpopo in May 2008, the provincial department had spent 48% of the club development grant albeit there was no visible club development observed during the visit.

The Committee also raised concerns with the Department that provinces were hosting professional games which were not their core competence. The North West was funding teams in the Vodacom Cup. Gauteng was funding the Gauteng Challenge and the Eastern Cape was funding international boxing competitions

Questions were also raised on whether there were any links between the department and the private sector initiatives in terms of the Public Private Partnership.

Recommendations of the Committee in respect of SRSA and the National Treasury:

• The two departments to jointly evaluate whether the structures and clubs developed from the club development grant existed; • Ensure ongoing support for those clubs; • Clarify the purpose of the Legacy Grant and monitor it accordingly. • Establish whether the legacy was in respect of 2010 only, meaning soccer, and establish whether this was targeting host cities or the provinces generally.

While soccer would be the main beneficiary, the department was of the view that other sporting codes would also take advantage of the Legacy Grant. The Committee proposed that it would assist to have an indaba with the relevant stakeholders to look into how they can jointly benefit from the legacy grant.

DEPARTMENT OF TRANSPORT

The Department of Transport manages five conditional grants. These are the:

• Gauteng Rapid Rail Link Grant receiving R2 832.7 million in 2009/10; • Overload Control Grant (new) receiving R10.069 million in 2009/10; • Public Transport Operations Grant receiving R3 531.9 million in 2009/10; • Sani Pass Grant receiving R34.3 million in 2009/10; and • Transport Disaster Management Grant (new) receiving R11.5 billion over the MTEF.

The department reported that since the 2005/06 financial year it had been running at a shortfall until in November 2008 the department ran out of funds. This was not as a result of under-budgeting but rather that of underfunding. The matter had been largely resolved through the courts. The department had agreements with the provinces to provide the services to people who needed the service. Various contracts were used in these arrangements ranging from tendering contracts, negotiated contracts and interim contracts. It was reported that the bus operators preferred interim contracts (driven by ticket sales), but the department was now moving from these agency agreements towards conditional grants provided for in the DORA. This would ensure that there were strict conditions that operators would adhere to. Non-compliance would lead to termination of contracts. This would be closely monitored to avoid increasing unemployment.

The department also noted that focus in terms of technical assistance needed to be directed towards Mangaung but more so towards Tshwane which had major problems.

The National Treasury reported that its plans were to complete the contractual engagements by September 2009.

The National Treasury committed to provide a report on the consequences of underfunding reported by the Department of Transport. The Department also committed to provide the Committee with a detailed report tabled before the Portfolio Committee on Transport. It added that the implication of the underfunding was the deterioration of services provided as well as bus operators who do not maintain their vehicles.

It was also the view of the department that the DORA only created a rigid framework and did not provide a solution for providing bus services to the people who needed it.

The National Treasury pointed out that government needed to decide how, in the context of limited resources, it would ensure that settlements were in close proximity to work areas in order to reduce the need for funding in the form of bus subsidies.

National Treasury and the Department were requested to engage on the issue of underfunding and report to the incoming SCOF and PC Transport.

The department was also restructuring the Road Accident Fund (RAF) in such a way that the processes eliminate the need for lawyers. It was reported that structures representing lawyers were opposing this move through the courts.

CONCLUSION

Given the significance of the Division of Revenue Bill in ensuring equitable division of nationally raised funds among the three spheres of government, the Committee thanks all stakeholders for their comments and participation in the public hearings that took place over three days.

REFERENCES

1. Division of Revenue Bill [B4-2009] (section 76(1))
2. Budget Review 2009
3. Presentations submitted by participating departments and stakeholders

4. National Treasury’s 3rd Quarter Report on conditional grants transferred from the national departments and actual payments made by the provinces

                    MONDAY, 16 MARCH 2009
   

TABLINGS

National Council of Provinces

1. The Chairperson

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1. The Chairperson

   a) NCOP Report 2004 to 2009

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COMMITTEE REPORTS

National Assembly and National Council of Provinces

Report of the Ad Hoc Joint Committee on the appointment of members to the National Youth Development Agency Board, dated 16 March 2009: The Committee was established on the 5 February 2009 by a resolution of the National Assembly and 10 February 2009 by resolution of the National Council of Provinces to consider the appointment of members of the Board to the National Youth Development Agency.

The Committee consisted of the following members:

NATIONAL ASSEMBLY

Mr JJ Combrinck ANC Mr M Johnson ANC Mr BM Mkongi ANC MS NR Mokoto ANC Ms WS Newhoudt – Druchen ANC Ms NN Sibhidla ANC Mr Y Wang ANC Mr GR Morgan DA Mr MM Swathe DA Ms SP Lebenya – Ntanzi IFP Mr LW Greyling ID Mr IE Jenner ID

NATIONAL COUNCIL OF PROVINCES Western Cape Mr W Douglas

Kwazulu - Natal Mr DD Gamede

Limpopo Ms HF Matlanyane

Gauteng Ms F Mazibuko Mzizi, Mr MA (alt)

Eastern Cape Mr DG Mkono Mr MO Robertsen (alt)

Northern Cape Mr RJ Tau Mr MC Goeieman (alt)

Mpumalanga Ms MP Themba

North West Ms JF Terblanche

Free State Dr FJ Van Heerden Mr TS Setona (alt)

The committee placed adverts in the national and provincial newspapers calling on members of the public to submit nominations, from 20 February until 06 March 2009, of persons to serve on the Board of the National Youth Development Agency. It was required that the nominees should: • be South African citizens • comply with any other requirements prescribed by national legislation, in particular the National Youth Development Agency Act, 2008 • possess suitable qualifications, expertise and experience in the area of the youth.

The adverts appeared in the following newspapers:

National Newspapers City Press Rapport Sunday Times

Provincial Newspapers Argus Burger-Wes Daily Dispatch Diamond Field Advertisers EP Herald Ilanga Limpopo Mirror Mail & Guardian Mpumalanga News Pretoria News Potchefstroom Herald Sunday Tribune Sowetan Star Volksblad

173 nominations from the members of the public and from different institutions were received by the Committee.

The Committee considered all the nominations on the 9 and 10 March 2009 and agreed that the following 26 persons be shortlisted. The names of the shortlisted candidates were published in the Announcement Tablings and Committee (ATC) Reports of the 10 March 2009. The following candidates were interviewed on the 12 and 13 March 2009:

Mr V Sidali Mr EB Letsoalo Mr MW Thango Mr G Essop Mr VN Mbanga Mr S Nair Ms A Coetzee Ms N Ntanjana Mr PR Mnisi Ms N Moleko Mr MR Khumalo Mr L Marincowitz Mr O Sipuka Ms I Motau Mr LI Maile Mr S Khan Mr G Mackenzie Ms P Kadi Mr BR Buys Mr M Tyhali Mr FJ Slabber Ms M Tshabalala Ms P Makeleni Mr A Lungisa Mr Y Pillay Ms DD Adams

The youngest candidate was a 14 year old boy, a grade eight (8) pupil, Mr S Khan from Rondebosch High School. He showed confidence by applying and took time off from school. He displayed leadership qualities and is looking forward to be a Junior Mayor of the City of Cape Town. The Committee acknowledged and commended him for his confidence and his involvement in developmental activities in his community.

It was worth noting that his interest and eventual participation in the interviews was a confirmation of living up to the theme of People’s Parliament in action.

Young women and people living with disabilities were also shortlisted and interviewed. The Committee acknowledged their qualities of leadership.

Having interviewed the candidates and deliberated on the performance of each, the Committee recommends to the National Assembly and the National Council of Provinces that the following persons be appointed to the Board of the National Youth Development Agency:

1. Mr MR Khumalo
2. Ms M Tshabalala
3. Ms P Makeleni
4. Mr A Lungisa
5. Mr Y Pillay
6. Ms I Motau

7. Mr FJ Slabber

   Report to be considered.

                       TUESDAY, 17 MARCH 2009
   

TABLINGS

National Assembly and National Council of Provinces

1. The Minister for Justice and Constitutional Development

 a) Proclamation No 2 published in Government Gazette No 31808 dated 21
    January 2009: Referral of matters to existing special investigating
    unit and special tribunal, in terms of the Special Investigating
    Units and Special Tribunals Act, 1996 (Act No 74 of 1996).

(b)    Proclamation No R. 3 published in Government Gazette No 31811
    dated 22 January 2009: Commencement of the South African Judicial
    Education Institute Act, 2008 (Act No 14 of 2008).

 c) Government Notice No R. 43 published in Government Gazette No 31809
    dated 22 January 2009: Amendment of Regulations, in terms of the
    Judges’ Remuneration and Conditions of Employment Act, 2001 (Act No
    47 of 2001).

1. The Minister of Water Affairs and Forestry

 a) Albany Coast Water Board’s Proposed Water Tariffs for 2009-10,
    tabled in terms of section 42 of the Local Government: Municipal
    Finance Management Act, 2003 (Act No 56 of 2003).
(b)     Amatola Water Board’s Proposed increase in Water Tariffs for
    2009-10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


(c)     Bloem Water Board’s Proposed increase in Water Tariffs for 2009-
    10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


(d)     Botshelo Water Board’s Proposed increase in Water Tariffs for
    2009-10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


(e)     Bushbuckridge Water Board’s Proposed Water Tariffs for 2009-10,
    tabled in terms of section 42 of the Local Government: Municipal
    Finance Management Act, 2003 (Act No 56 of 2003).


 f) Lepelle Northern Water Board’s Proposed increase in Water Tariffs
    for 2009-10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).

 g) Magalies Water Board’s Proposed increase in Water Tariffs for 2009-
    10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


 h) Mhlathuze Water Board’s Proposed increase in Water Tariffs for 2009-
    10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).

(i)     Namakwa Water Board’s Proposed increase in Water Tariffs for
    2009-10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


(j)     Overberg Water Board’s Proposed increase in Water Tariffs for
    2009-10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


(k)     Pelladrift Water Board’s Proposed Water Tariffs for 2009-10,
    tabled in terms of section 42 of the Local Government: Municipal
    Finance Management Act, 2003 (Act No 56 of 2003).


(l)     Rand Water Board’s Proposed increase in Water Tariffs for 2009-
    10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


(m)     Sedibeng Water Board’s Proposed increase in Water Tariffs for
    2009-10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).


(n)     Umgeni Water Board’s Proposed increase in Water Tariffs for
    2009-10, tabled in terms of section 42 of the Local Government:
    Municipal Finance Management Act, 2003 (Act No 56 of 2003).

1. The Minister of Environmental Affairs and Tourism

 a) Government Notice No 182 published in Government Gazette No 31933
    dated 20 February 2009: Publication of a board for Isimangaliso
    Wetland Park Authority, in terms of the World Heritage Convention
    Act, 1999 (Act No 49 of 1999).


 b) Government Notice No 190 published in Government Gazette No 31912
    dated 20 February 2009: Notice of intention to make regulations
    regarding fees for the provision of aviation meteorological
    services in terms of section 28 (b) of the South African Weather
    Services Act, 2001 (Act No 8 of 2001).

 c) Government Notice No R.209 published in Government Gazette No 31962
    dated 27 February 2009: Threatened or Protected Species Amendment
    Regulations, 2009 in terms of the National Environmental
    Management: Biodiversity Act, 2004 (Act No 10 of 2004).

 d) Government Notice No R.210 published in Government Gazette No 31963
    dated 27 February 2009: Threatened or Protected Species Second
    Amendment Regulations, 2009 in terms of the National Environmental
    Management: Biodiversity Act, 2004 (Act No 10 of 2004).

COMMITTEE REPORTS National Council of Provinces

1. Report of the Select Committee on Social Services on the Agreement between the government of the Republic of South Africa and the Government of the Kingdom of Lesotho on the Facilitation of Cross- Border Movement of Citizens of the Republic of South Africa and the Kingdom of Lesotho , dated 17 March 2009:

   The Select Committee on Social Services, having considered the request for approval by Parliament of the Agreement between the Government of the Republic of South Africa and the Government of the Kingdom of Lesotho on the Facilitation of Cross-Border Movement of Citizens of the Republic of South Africa and the Kingdom of Lesotho, referred to it, recommends that the Council, in terms of section 231(2) of the Constitution, approve the said Agreement.

2. Report of the Select Committee on Social Services on the Regulations made in terms of the Children’s Act, 2005 (Act No. 38 of 2005), dated 17 March 2009:

   The Select Committee on Social Services, having considered the request for approval by the Council on the Regulations made in terms of the Children’s Act, 2005 (Act No. 38 of 2005), referred to it, recommends that the Council, in terms of Section 3 (3), read with Section 3 (2) (b) of the Act, approve the Regulations.

                     WEDNESDAY, 18 MARCH 2009
   

ANNOUNCEMENTS National Council of Provinces

1. Referral to Committee of paper tabled

(a)    The following paper is referred to the Select Committee on
     Security and Constitutional Affairs for consideration and report:

     Code of Good Administrative Conduct: Section 10(5A) of the
     Promotion of Administrative Justice Act, 2000

TABLINGS

National Assembly and National Council of Provinces

1. The Minister for Provincial and Local Government

 a) Report and Financial Statements of the South African Local
    Government Association (SALGA) for 2007-2008, including the Report
    of the Auditor-General on the Financial Statements and Performance
    Information for 2007-2008 [RP 151-2008].

COMMITTEE REPORTS

National Council of Provinces

1. Report of the Select Committee on Security and Constitutional Affairs, dated 18 November 2008:

   The Select Committee on Security and Constitutional Affairs, having considered the Magistrates’ Courts: Amendment of Rules of Court and the Amendment of the Rules regulating the conduct of the proceedings of the Provincial and Local Divisions of the High Court of South Africa, in accordance with section 7(c) of the Criminal Procedure Amendment Act, 2003 (Act No 42 of 2003), recommends that the Rules be approved.

   The Select Committee, however, wishes to make the following further comments:

   The Committee regrets the delay in the finalization of these Rules. The Committee does accept the explanations given by the Rules Board and the Department of Justice and Constitutional Development and understands that much of the delay has been caused by the procedure that has been followed. The Committee further notes that the Rules Board and the Department have determined a less cumbersome procedure in the process of amending Rules in future.

   The Committee would suggest that, with regards to the procedure, any discussions and consultation around amendments to the Rules should take place at an earlier stage. In other words, that the Rules Board should consult various roleplayers and should ideally reach agreement with the Minister of Justice and Constitutional Development before formally submitting the Rules to the Minister for approval.

   It would also make sense if, in future, the Committee was provided with the opportunity to comment, albeit informally, before any amendments to the Rules are tabled in Parliament for approval.

   The Committee will also raise the issue of procedure in its exit report for the attention of the Committee in the new term of Parliament in 2009.

   The Committee wishes to note that the Judicial Matters Amendment Bill is likely to be passed by Parliament in due course and may possibly necessitate further amendments to these Rules in future.

   Report to be considered.

2. Report of the Select Committee on Land and Environmental Affairs on the Request for the Ratification of the Decision by the Minister of Environmental Affairs and Tourism to Exclude from Coastal Public Property the confined Port Areas, in terms of section 27(4) of the National Environmental Management: Integrated Coastal Management Act, 2008 (Act No 24 of 2008), dated 18 March 2009:

The Select Committee on Land and Environmental Affairs, having
considered the request by the Minister of Environmental Affairs and
Tourism, to Exclude from Coastal Public Property the confined Port
Areas, in terms of section 27(4) of the National Environmental
Management: Integrated Coastal Management Act, 2008 (Act No 24 of 2008)
referred to it, recommends that the House ratifies the said request by
the Minister of Environmental Affairs and Tourism.
Report to be considered.


                       THURSDAY, 19 MARCH 2009

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Bills passed by Houses – to be submitted to President for assent

(1)    Bill passed by National Council of Provinces on 19 March 2009:


     (a)      Constitution Sixteenth Amendment Bill [B 1 – 2009]
     (National Assembly – sec 74).


      b) Cross-boundary Municipalities Laws Repeal and Related Matters
         Amendment Bill [B 3B – 2009] (National Assembly – sec 75)


    c) Division of Revenue Bill [B 4 – 2009] (National Assembly – sec
       76)


    d) Western Cape Inherited Debt Relief Bill [B 6 – 2009] (National
       Assembly – sec 77)

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Water Affairs and Forestry

(a)     Report and Financial Statements of Pelladrift Water Board for
    the year ended 30 June 2008, including the Report of the
    Independent Auditors on the Financial Statements for the year ended
    30 June 2008.