National Assembly - 04 November 2010
THURSDAY, 4 NOVEMBER 2010 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:02.
The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
NOTICES OF MOTION
Mr V B NDLOVU: Mr Speaker, I hereby give notice that on the next sitting day of the House, I shall move:
That the House debates the unacceptably high level of corruption and
crime in the country, including the hijacking of cars, buildings and now
companies, by criminals.
Ms A C MASHISHI: Speaker, I hereby give notice that on the next sitting day of the House, I shall move:
That the House debates the development and distribution of adequate
learning and teaching materials to schools for 2011.
Mr M E GEORGE: Mr Speaker, I hereby give notice that on the next sitting day of the House, I shall move on behalf of Cope:
That the House debates the failure by the SA Police Service in allowing
the firearms registry to degenerate to the point that corrupt practices
in the issuing of gun licences can take place.
Rev K R J MESHOE: Speaker, on behalf of the ACDP, I give notice that on the next sitting day of the House, I shall move:
That the House debates the desirability of holding the official opening of Parliament ceremony in the morning as has been the tradition of Parliament for many years, rather than in the evening, as the majority party is now proposing, with particular reference to the personal safety of parliamentary staff, transportation and all associated costs.
Mr C T FROLICK: Hon Speaker, I have a point of order.
The SPEAKER: What is the point of order?
Mr C T FROLICK: There is an agreed format in which motions for debate are submitted in the House. The hon Mike Ellis has raised it on previous occasions. It is quite clear that what the hon member is currently reading is in violation of the agreement amongst the political parties.
The SPEAKER: Objection sustained.
Mr J F SMALLE: Mr Speaker, I hereby give notice that on the next sitting day of the House, I shall move on behalf of the DA:
That the House debates the funding of state public entities and recommendations on how best to achieve good governance, accountability and efficiency.
The SPEAKER: Hon member, before you speak, wait for me to point you out. Hon Dexter, you have the floor.
Mr P D DEXTER: Speaker, I hereby give notice that on the next sitting day of the House, I shall move on behalf of Cope:
That the House debates the rapid depletion of our smaller than hitherto
estimated coal resources, and the failure of the government to factor
this in.
Mr M W RABOTAPI: Hon Speaker, I hereby give notice that on the next sitting day of the House, I shall move on behalf of the DA:
That the House debates the means by which Public Works engages in lease
agreements with landlords, and measures to ensure that the taxpayer gets
value for money from property leased by the government.
Mr E J MARAIS: Speaker, I hereby give notice that on the next sitting day of the House, I shall move on behalf of the DA:
That the House debates the performance of the Namaqualand Diamond Trust
Fund, including the spending on travel and accommodation by its
trustees, and measures to improve accountability and internal
governance.
Mr H P MALULEKA: Hon Speaker, I hereby give notice that on the next sitting day of the House, I shall move on behalf of the ANC:
That the House debates the expansion of resources devoted to our
capacity for knowledge production and expanding the resources devoted to
innovation and research, including through an innovation management
framework.
Mr G P D MACKENZIE: Hon Speaker, I give notice that on the next sitting day of the House, I shall move on behalf of Cope:
That the House debates the seriousness and consequences of the failure
by the SA Police Service for allowing the Firearms Registry to
degenerate to the point that corrupt practices in the issuing of gun
licences can take place, and that this needs urgent investigation and
appropriate intervention.
CELEBRATION OF DIWALI, FESTIVAL OF LIGHTS
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move without notice:
That the House —
1) notes that on 5 November Hindus worldwide will be celebrating one
of the biggest events on the Hindu calendar, Diwali, the festival
of lights;
2) further notes that Diwali marks the beginning of the Hindu New Year
and is celebrated to promote and cherish peace, harmony and the
triumph of light over darkness;
3) recognises that the festival of Diwali symbolises the reaffirmation
of hope, calls for a renewed commitment to friendship and goodwill
and is a celebration of all the myriad joys of life;
4) wishes all Hindus a happy and prosperous new year; and
5) extends its best wishes to the Hindu community over this auspicious
period.
Agreed to.
HANSARD CELEBRATES CENTENARY IN SOUTH AFRICAN PARLIAMENT
(Draft Resolution)
Mr P J C PRETORIUS: Mr Speaker, as a former Hansard reporter in this House, it gives me great pleasure to move the following motion without notice:
That the House, in view of the fact that today marks the centenary of Hansard in the South African Parliament —
1) recognises with appreciation the indispensable role played by
Hansard in recording and translating the debates of Parliament
since 1910;
2) further recognises with appreciation the specific role played by
Hansard reporters, translators and administrative staff over the
past 100 years;
3) notes the challenges with which Hansard was confronted at the
advent of democracy in 1994, particularly with the introduction of
11 languages, and the way in which these were overcome;
4) further notes the ongoing challenges that face Hansard, not least
of all that members’ speeches often require considerable editing
and correction prior to publication and that it is through the
tireless work of Hansard staff that a professional end product is
produced;
5) cognisant of the important role Hansard played in recording the
history of our country and Parliament as an institution, expresses
its appreciation to Dr At van Wyk, author of a momentous new book
on Hansard, titled: Hoor! Hoor! Hansard Honderd jaar debat 1910-
2010: and
6) resolves to wish the Secretary to Parliament and Hansard staff all
success in ensuring the continued success of Hansard as a critical
and indispensable service to our country and institution.
Agreed to.
MODJADJI DYNASTY CELEBRATES RAIN-MAKING CEREMONY AT MAPUNGUBWE
(Draft Resolution)
Mr J H VAN DER MERWE: Mr Speaker, I move without notice:
That the House —
(1) notes that on October 29 the Modjadji dynasty celebrated their annual rain-making ceremony at Mapungubwe;
(2) further notes that the festival was attended by King Victor Thulare Sekhukhune, Thovhela Vho Tony Mphephu Ramabulane and Prince Mpapatla Bakhoma Modjadji, the Department of Environmental Affairs, the Department of Co-operative Governance and Traditional Affairs, the National Heritage Council, the Vhembe and the Mopani District Municipalities;
3) recognises that the successful ceremony, which was preceded and
followed by rain, provides ample evidence that co-ordination and
collaboration among all three spheres of government and civil
society can speed up service delivery, as well as bring about
effective ways of water and environmental conservation; and
4) congratulates the Modjadji dynasty, the Department of Water
Affairs, the Department of Environmental Affairs, the Department of
Co-operative Governance and Traditional Affairs, the SanPARKS and
others for hosting this successful event and observing this
important month on the indigenous African calendar.
Agreed to.
FIRST SATURDAY OF NOVEMBER DECLARED NATIONAL CHILDREN’S DAY
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Speaker, I move without notice:
That the House —
1) notes that the Government of the Republic of South Africa declared
the first Saturday of November National Children’s Day and that the
aim of the National Children’s Day celebration is to highlight
progress being made towards the realisation and promotion of the
rights of children;
(2) further notes that this year, the National Children’s Day takes place on 6 November at the Civic Centre in Rustenburg, North West, and the theme is “Act for the survival of all children”; and
(3) supports all interventions by the government and various players that enhance conditions that encourage child survival.
Agreed to.
SUSPENSION OF RULE 253(1) TO CONDUCT SECOND READING DEBATE OF DIVISION OF REVENUE AMENDMENT BILL
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Mr Speaker, I move the draft resolution printed in my name on the Order Paper, as follows:
That the House suspends Rule 253(1), which provides inter alia that the debate on the Second Reading of a Bill may not commence before at least three working days have elapsed since the committee’s report was tabled, for the purposes of conducting the Second Reading debate today on the Division of Revenue Amendment Bill [B35 - 2010] (National Assembly – sec 76(1)).
Agreed to.
PRODUCTION OF VEGETABLE GARDENS AT RURAL SCHOOLS
(Member’s Statement) Ms N GINA (ANC): Mr Speaker, the ANC is committed to creating an environment that ensures that there is adequate food available, that we grow our own food and protect the poor communities from the rising food prices, and that we eradicate hunger.
Therefore, the ANC welcomes the initiative by the Mpumalanga department of agriculture, rural development and land administration to call on more people to grow vegetables in unused open fields, especially at rural schools. Through this project, which was initiated in 2000, more than 200 schools have already managed to establish vegetable gardens, whose produce is either sold to their local communities or used in the feeding scheme for the poor pupils.
The ANC supports these programmes as they add value to the ANC’s clarion call to expand access to food production schemes in rural and peri-urban areas so as to enable rural people to grow their own food. I thank you. [Applause.]
MEASURERS TO ADDRESS SHORTAGE OF HEALTH CARE WORKERS
(Member’s Statement)
Ms E MORE (DA): Speaker, the DA welcomes the inclusion in Finance Minister Pravin Gordhan’s Budget last week of a proposal to allow private hospitals to help with the training of doctors, but ad hoc interventions such as these are not going to make a real difference to South Africa’s medical worker shortage, unless they form part of a comprehensive strategy.
The DA believes that the moratorium on the employment of medical staff from other Southern African Development Community, SADC, countries should be lifted. Secondly, we believe that the quota which applies to the number of nurses that private hospitals can train, should be scrapped. Thirdly, medical personnel should be added to the Home Affairs scarce skills database. Fourthly, we need to launch an international recruitment programme. South Africa has many advantages as a destination for medical staff from all over the world. These advantages have not been exploited fully.
Finally, there should be a requirement for private sector doctors to perform a certain number of hours of service in public health facilities in order to maintain their registration. It is wrong that in the face of a shortage of 12 000 doctors and 46 000 nurses in the public sector, the national Health department does not have a human resource plan for health care. We need a comprehensive plan of this nature to help to address the fundamental breakdown in our public health care system. I thank you.
FOOD SECURITY IN SOUTH AFRICA IN JEOPARDY
(Member’s Statement)
Mr L S NGONYAMA (Cope): Hon Speaker, the future of agriculture in South Africa is in serious jeopardy. Highly skilled South African farmers are leaving in droves to establish farms in Mozambique, Zambia, the Congo, Nigeria and even Russia.
South Africa must pursue a win-win policy of achieving transformation and retaining scarce skills in agriculture. The department, however, seems to have learnt nothing and forgotten nothing. Any government that fails to give priority to the issue of food security will plunge the country into chaos. President Zuma admitted that food security “is nothing less than a fierce challenge” for government.
Dispensing with skilled educators, doctors and engineers has crippled education, health and municipal service delivery. The collapse of agriculture will lead to a dangerous situation for our country. South Africa needs to guarantee both food security and transformation. The lack of vision is astonishing and its strategic failure is alarming.
Cope demands that government act as though food security is nothing less than a fierce challenge. Anything less will be the ultimate betrayal of the people of South Africa. I thank you. [Applause.]
NATIONAL GOLDEN GAMES CELEBRATE ACTIVE AGEING
(Member’s Statement)
Mrs M V MAFOLO (ANC): Speaker, the ANC believes that sport and recreation are an integral part of reconstructing and developing a healthier society. Sport and recreation should cut across all developmental programmes and be accessible and affordable for all South Africans, including those in rural areas, the young and the elderly.
The ANC is fully behind the National Golden Games, which celebrate active ageing. They took place from 26 to 27 October at the uMhlathuze Sports Complex in Richards Bay. The National Golden Games are part of a programme run in residential care centres for older people with the aim of keeping them healthier.
The ANC supports initiatives geared at facilitating and mobilising resources in both the public and private sector to redress inequality and enhance this vital aspect of our society. I thank you. [Applause.]
FRAUDULENT TEACHERS UNDERMINING EDUCATION
(Member’s Statement)
Ms H N MAKHUBA (IFP): Hon Speaker, our education system is under siege and is being destroyed from within by the cancer of fraudulent teachers who are currently walking the corridors of schools and teaching our children in this country. Hundreds of teachers in KwaZulu-Natal alone have been found to have fraudulently misrepresented their teaching qualifications to the department of education. This also raises very serious questions as to the scrutiny carried out by the department in the employment of such teaching staff.
In light of these controversies, the IFP urges the Department of Basic Education and the Department of Higher Education and Training to conduct a national audit of both their screening processes of prospective new teachers, and their current national teaching staff complement in order to ensure that the best possible teachers are available to assist our learners with their studies. I thank you.
STUDY PAINTS WORRYING PICTURE OF SOUTH AFRICA’S COAL RESERVES
(Member’s Statement)
Mr L W GREYLING (ID): Hon Speaker, the recently released independent study by Umvoto Africa paints a very worrying picture of South Africa’s future coal reserves. Instead of the much-touted 50 gigatons of coal reserves that was previously estimated, this study claims that we in fact only have 15 gigatons of coal left in the ground.
This figure brings into doubt the overreliance that the recently drafted 20- year energy plan places on coal-fired generation. Even if one discounts this study’s estimates, one thing is certain: The price of coal, in terms of both its extraction and its environmental pollution, will rise exponentially over the next 20 years.
Another thing that is certain is that the price of renewable energy will continue to fall over the same period, a fact which is not being captured in the department’s 20-year energy plan. In fact, it is explicitly stated that the same cost curve will be used for renewable energy throughout this 20-year period. This defies logic as well as the market experience of the last decade in which the price of all renewable energies has been rapidly decreasing, with the result that it is now one of the fastest growing industries in the world.
The ID firmly believes that we need to rapidly wean ourselves off our dependence on fossil fuels and devise an energy plan that can see us lead the world in the field of renewable energy. I thank you.
SOUTH AFRICAN DEVELOPMENT PARTNERSHIP AGENCY
(Member’s Statement)
Ms K R MAGAU (ANC): Speaker, the ANC welcomes the announcement by Minister Maite Nkoana-Mashabane that South Africa is set to create a United States- style development aid agency, as it seeks to play a more prominent role as a major donor country in Africa.
The South African Development Partnership Agency, which has already been approved by Cabinet, will operate along the same lines as the United States Agency for International Development, USAid, an initiative that provides developing countries with funding for economic and humanitarian projects, as part of the United States’ foreign policy objectives.
The planned agency will not only enhance our contribution to institutional and capacity-building on the continent, but will also ensure that our post conflict reconstruction and development efforts are centrally co-ordinated.
Through the multimillion-rand African Renaissance Fund, managed by the Department of International Relations and Co-operation, South Africa is one of the largest development aid providers in Africa and all its activities will eventually be absorbed by the new aid agency, which will reduce bureaucracy and duplication. We applaud the ANC-led government’s commitment to continually provide aid in Africa.
Motsamaisi wa dipuisano, ke a leboha. [Mahofi.] [Thank you, Speaker.] [Applause.]]
RAPE OF MEDICAL STAFF ON DUTY
(Member’s Statement)
Rev K R J MESHOE (ACDP): Speaker, the ACDP is shocked and outraged by reports of the rape of a doctor at the Pelonomi Hospital in Bloemfontein. What is even more shocking is that a 16-year-old boy took part in the rape with two other men, aged 24 and 29. The report says the doctor was on duty when she was overpowered by three men in a ward at the hospital early on Saturday morning. One of the men allegedly hit her over the head with a brick and then the three men gang-raped her while she was unconscious.
In 2007, a Wits medical student was raped at the Chris Hani Baragwanath Hospital in Soweto while walking to the facility’s blood bank. In May this year, a female paramedic was gang-raped by three armed men when she and her colleague went to rescue an injured toddler in Durban Deep in Johannesburg.
The violent rape of women in our country is a major concern for the ACDP and it demands government’s urgent intervention. It is government’s responsibility to ensure that citizens are safe from criminals, particularly when they are in their homes and at work.
The ACDP wishes the traumatised and violated doctor at the Pelonomi Hospital a speedy recovery and commends her for her commitment to saving lives. Thank you.
MINISTER REFUSES TO HAND OVER INTERIM REPORTS OF INTERIM NATIONAL DEFENCE FORCE SERVICE COMMISSION
(Member’s Statement)
Mr D J MAYNIER (DA): Speaker, the Defence Force and the men and women who serve in the Defence Force are in deep trouble. But rather than sharing information about the Defence Force with the people’s representatives, information about the Defence Force has been hidden from the people’s representatives.
The hon Minister of Defence and Military Veterans, Lindiwe Sisulu, has refused point-blank to hand over the interim reports of the Interim National Defence Force Service Commission, and there is now no prospect, in my view, that the Minister will hand over the interim reports.
So, I have decided to do the right thing and begin to read extracts from one of these reports in this Parliament. And just so we know how serious things have become, let me begin by quoting from the conclusion of this report, which reads: “There is a clear need for a wide variety of matters to be attended to. Some of these matters, if not addressed immediately, are likely to further affect the morale of troops and could even threaten state security.”
Now, how is it that we are in a situation in which the military itself could threaten state security? Using successive members’ statements, I will read extracts from the interim report, and these extracts will show not only that the Defence Force is in deep trouble but that the Minister misled the Speaker, misled this Parliament and misled the people of South Africa. [Interjections.] The fact is that these interim reports should never have been hidden and I will not allow them to be hidden. [Time expired.] [Interjections.]
OPERATION HLASELA
(Member’s Statement)
Mr L P KHOARAI (ANC): Speaker, on 15 to 17 September 2010, the Premier of the Free State, the hon Sekgobelo “Ace” Magashule, officially opened 104 houses, paved streets and the Unico Clothing Company that makes medicines and bandages in my constituency, under the theme Operation Hlasela.
The ANC-led government will continue to bring hope to the lives of South Africans, especially the people of the Free State. We would like to congratulate the Premier of the Free State and his cabinet on bringing about change and giving hope to the people of South Africa. Working together, with all the people of South Africa, we can do more. Hlasela Ace Magashule, Hlasela! [Attack, Ace Magashule, attack!] I thank you. [Applause.]
KWAMANDLANGAMPISI PROTECTED ENVIRONMENT
(Member’s Statement)
Mrs H S MSWELI (IFP): Hon Speaker, in what is a first for South Africa, hectares of privately owned farmland were declared a protected environment earlier this month. The KwaMandlangampisi Protected Environment, which extends from Wakkerstroom to Luneburg in Mpumalanga, encompasses high- altitude grasslands, wetlands and indigenous forests, and is home to numerous threatened endemic plant, bird and animal species.
This catchment area, inclusive of the headwaters of the Pongola and Assegai Rivers, is critical in terms of its national power generation. In this regard, the IFP calls on the Department of Water and Environmental Affairs to protect and conserve these kinds of environments, and to spread through this initiative to the rest of South Africa the need for conservation and the protection of our precious future water supplies. I thank you. [Applause.]
FEMALE DOCTOR RAPED WHILE ON DUTY
(Member’s Statement)
Mr D A KGANARE (Cope): Speaker, it is clear to us that security is a serious problem in state hospitals. The rape of a female doctor while on duty outraged everyone in society. Such an incident, furthermore, is bound to negatively affect the provision of health care services. What female doctor, after what happened to the unfortunate doctor who was raped, will now be willing to work at night?
The provision of security for staff at any workplace is the sole responsibility of the employer. The use of private security does not exonerate the government in any way. The liability rests squarely with government. Private security companies have contractual obligations. If they cannot meet their given obligations in full, they should be fired.
When security is compromised in the way it was in Bloemfontein at the Pelonomi Hospital, dire consequences must follow for those who miserably failed the doctor. Let me make it clear that the state was not the victim; the only victim was the doctor. The state must therefore not attempt to detract from its culpability by making out that it too was a victim. If staff can be attacked by criminals in hospitals, what about the poor patients who can do nothing to protect themselves? Personal security in South Africa is a matter on the minds of South Africans every day. It is insufficient for the government to issue a condemnation, as if they were just bystanders. Government must act with resolve to address the personal safety of all South Africans wherever they are. The failure of government in respect of hospital security is inexcusable and unforgivable. [Time expired.] [Applause.]
SUPPORT FOR KWAZULU-NATAL EMERGING FARMERS
(Member’s Statement)
Mr M E MBILI (ANC): Speaker, the ANC welcomes the support given to emerging farmers in the Drakensberg area of KwaZulu-Natal to supply yellow maize to South African Breweries, SAB. This initiative came about as a result of a partnership between the KwaZulu-Natal department of agriculture, environmental affairs and rural development and SA Breweries.
The farmers will supply 180 000 tons of yellow maize. SAB is prepared to buy 5 000 tons in the first year of the project, and the quantity will gradually increase over time. This is a milestone for emerging farmers in the province as this will transform their communities and advance the entrepreneurial skills of emerging farmers.
This programme is in line with the ANC strategy of implementing large-scale programmes to establish new smallholders and improve the productivity of existing small-scale and subsistence farmers, as well as integrating smallhold farmers into a formal value chain and linking them with markets.
The ANC, therefore, calls on all big companies to emulate this initiative as a means of ensuring food security and combating hunger.
Yiyona-kelento edala ukuthi sisebenzele u-ANC, yiyo lento edala ukuthi singalali emakhaya. Siyabonga. [Ihlombe.] [That is why we work for the ANC and leave the luxury of our homes. Thank you. [Applause.]]
DROUGHT IN NELSON MANDELA BAY
(Member’s Statement)
Mr D C SMILES (DA): Speaker, Nelson Mandela Bay is experiencing its worst drought since 1989. Dams are at 31% of capacity and are predicted to run dry by August next year, 10 months away. There are projects on the table that will take between 10 and 16 months to complete, but there is no money available to allow these projects to start. An urgent application for funding assistance has hit the wall of co-operative governance at its bureaucratic red tape worst.
An amount of R1,6 billion in drought relief funding was requested in May this year. The request was ratified by the provincial local government department in July before being passed on to Minister Shiceka’s department for consideration. The latter department is now insisting on details of how other drought relief funding made available in the Eastern Cape has been spent, before it forwards the Nelson Mandela Bay application to the Minister for his signature.
The national department’s mistrust of the Eastern Cape government is understandable. But why should the Nelson Mandela Bay funding be based on the way other municipalities have spent or misspent their funds? The Eastern Cape government has failed to provide the requested details. The municipality itself has yet to make any effort to speed up the process. The mayor is only putting together a high-level delegation to approach national government. All spheres of government are guilty of failure … [Time expired.] [Applause.]
SOUTH AFRICA TO HOST PRESTIGIOUS GYM FOR LIFE EVENT
(Member’s Statement)
Mrs V BAM-MUGWANYA (ANC): Hon Speaker, since the year 2004, the Department of Health has prioritised the promotion of healthy lifestyles as one of the critical programmes that need to be advocated throughout the country.
The Healthy Lifestyles Programme was launched to promote health and wellbeing among individuals, communities and populations, enabling them to address the broad determinations of health and to identify risk factors. The critical aspect of the programme is to address the onset and the prevalence of noncommunicable diseases, the dangers of obesity, unhealthy diet and physical inactiveness …
… eyenza abantu babe yizidudla, bakhuluphale … [… causes obesity in people …]
… successful ageing and mental health, and the contribution of alcohol abuse to non-natural deaths.
Therefore, we welcome the Gym for Life initiative and the honour that has been bestowed on South Africa to host this prestigious event which will be held in Cape Town from 10 to 11 July 2013. This event on the international gymnastics calendar will attract between 3 000 and 5 000 participating gymnasts.
Furthermore, it is worth noting that this event will open doors for South Africa to host the World Gymnaestrada, the greatest gymnastic event in the world. This demonstrates the confidence gained by the international community in South Africa’s ability to host world-class events after we hosted a very successful Fifa Soccer World Cup. This will be another tourism opportunity gained, promoting South Africa as a tourist destination. I thank you. [Applause.] FRAUDULENT TEACHERS UNDERMINING EDUCATION
(Minister’s Response)
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Speaker, we support the view of the hon member of the IFP. Presenting false or forged qualifications is a serious matter. Teaching is a serious profession and discipline, and we do believe that people who present false or forged qualifications are guilty of the crime of forgery and uttering and fraud and the appropriate criminal action must be taken.
We do support the view that we have to be vigilant, and the SA Council for Educators must ensure that they screen educators properly in terms of their qualifications.
Furthermore, we would certainly raise the matter within the Council of Education Ministers meeting to ensure that all departments are aware of the threat of false qualifications. Therefore we will do whatever is necessary to protect and safeguard our learners and the profession as a whole. Thank you very much. [Applause.]
MEASURES TO ADDRESS SHORTAGE OF HEALTH CARE WORKERS
(Minister’s Response)
The DEPUTY MINISTER OF FINANCE: Hon Speaker, we welcome the statement by the member of the DA regarding the Minister’s statement on allowing doctors to train at public hospitals. However, I do not agree with the member that that is an ad hoc intervention.
Therefore, the call for a comprehensive health plan is misplaced, because there already is a 10-point plan from the Department of Health that is currently being implemented which encompasses the improvement of primary health care. Amongst other things, there is the hospital revitalisation plan that steps up the building of infrastructure in health facilities in preparation for the implementation of the National Health Insurance system that will extend universal health care to all South Africans. Thank you.
FOOD SECURITY IN SOUTH AFRICA IN JEOPARDY
(Minister’s Response)
Die ADJUNKMINISTER VAN LANDBOU, BOSBOU EN VISSERYE: Agb Speaker, die agb lid van Cope het verwys na voedselsekuriteit en hy is tegnies reg. Op die oomblik is dit wêreldwyd ’n baie belangrike agendapunt. Dit was die agendapunt by die G8. Dit was by die G20 bespreek en by die Afrika-unie was dit een van die hoofpunte.
In Afrika en in Suid-Afrika se geval is bestaansboere baie belangrik. Dit bring politieke stabiliteit en dit moet in Suid-Afrika bevorder word. Die werklikheid is dat bestaansboere hoofsaaklik kos vir hulself en miskien vir die omgewing produseer maar daar is nie genoeg produksie om vir 70% van die mense in stedelike gebiede ook daarvan te voorsien nie.
Die Departement van Landbou, Bosbou en Visserye onderskei vir die eerste keer, u kan gaan kyk, tussen drie kategorieë boere: bestaansboere, kleinboere en kommersiële boere. As u my toesprake die afgelope jaar gevolg het, dan het ek deurlopend oor die drie kategorieë gepraat en die klem gelê en gesê enigiemand wat in Suid-Afrika oor voedselsekerheid wil praat en die kommersiële boere ignoreer, weet nie waarvan hy praat nie.
Dit is dus wel belangrik dat ons kennis neem dat 22 lande in Afrika reeds vir boere van Suid-Afrika gevra het. Dit wys hoe gesog hulle is en ons moet moeite doen om hul hier te behou, want enige kundigheid wat die land verlaat, is tot ons almal se nadeel. (Translation of Afrikaans Minister’s response follows.)
[The DEPUTY MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES: Hon Speaker, the hon member from Cope referred to food security and he is correct, technically. It is currently a very important point on agendas across the globe. It was on the G8’s agenda. It was discussed at the G20, and was one of the main points at the African Union.
In the case of Africa and South Africa, subsistence farmers are very important. It leads to political stability and must be promoted in South Africa. The reality is that subsistence farmers mainly produce food for themselves and perhaps for the surrounding area, but there is not enough production to also supply 70% of the people in urban areas.
For the first time, you can go and check for yourselves, the Department of Agriculture, Forestry and Fisheries differentiates between three categories of farmers: subsistence farmers, small farmers and commercial farmers. If you followed my speeches throughout the year, you’ll recall that I continuously spoke about these three categories and emphasised that anybody who wants to talk about food security in South Africa and ignores the commercial farmers, does not know what he is talking about.
It is therefore important to note that 22 countries in Africa have already requested farmers from South Africa. This is a clear indication of how sought-after they are and we must make an effort to keep them here, as we are all disadvantaged when any skills leave the country.]
FOOD SECURITY IN SOUTH AFRICA IN JEOPARDY
(Minister’s Response)
The MINISTER OF RURAL DEVELOPMENT AND LAND REFORM: Thank you, hon Speaker. I just want to add a few things to what the hon Deputy Minister of Agriculture, Forestry and Fisheries said on food security.
Government has set aside R900 million this year for recapitalising and developing the farms which have been acquired since 1994. That programme has started, and we are working with commercial farmers. We are partnering commercial farmers with emerging farmers, so that we can reach a point at which, perhaps very soon, we can be assured of food security.
Lastly, that money is also going to recapitalise the irrigation schemes in the former homelands. We have identified five provinces for that purpose. We are working on a plan right now that is going to be implemented soon, and it focuses on food security. Thank you. [Applause.]
RAPE OF MEDICAL STAFF ON DUTY
FEMALE DOCTOR RAPED WHILE ON DUTY
(Minister’s Response)
The MINISTER OF WOMEN, CHILDREN AND PEOPLE WITH DISABILITIES: Thank you, hon Speaker. I want to say …
…ukuba ukudlwengulwa nokuxhatshazwa koomama nabantwana zizenzo ezingamkelekanga kakhulu kubantu baseMzantsi Afrika nakurhulumente wethu. Kungoko ke sakhe imithetho eliqela, ukususela ngo-1994, yokukhusela oomama nabantwana. NoMgaqo-siseko wethu ukwamele ukukhusela amalungelo oomama. Kungoko amasebe ahlukeneyo karhulumente esenza unakonako wokuba oomama bakhuseleke; ndibala iSebe lezamaPolisa, kunye neSebe lezoMthetho.
Kungoko, kwakhona, kuvuselelwa iinkundla ezifana neenkundla zemiba yasemakhaya, kunye namacandelo okukhusela abantwana emapoliseni. Siyabambisana ke nalo iSebe loHlaliso loLuntu, apho kwakhiwa khona izindlu namakhaya okhuseleko kusakhelwa amakhosikazi nabantwana abaphatheke kakubi.
Xa ndiza kuhlala phantsi ndifuna ukuthi urhulumente akanakho ukuwubamba yedwa lo mthwalo. Lo mthwalo ufuna siphathisane ngokubanzi nesizwe, oomama nootata, ikakhulu. Ndifuna ukuthi nabefundisi bethu sifuna ukubabona bedlala indima ebalulekileyo kulo mba. Sifuna ukuva uMfundisi uMeshoe, ngecawa xa eshumayela, ethetha ngalo mcimbi. [Kwaqhwatywa.]
Siza kumisela i-16 Days of Activism for no Violence against Women and Children. Njengoko besitshilo ngaphambili, sithi asiyiyo eyamakhosikazi kuphela le nto; yeyoomama nootata nesizwe siphela. Ngoko ke siyathemba ukuba abefundisi bethu, iinkokheli zethu zoluntu nabo bonke ootata abazinikezeleyo baza kuba behamba nathi kweli phulo lingaka, esithi makube liphulo leentsuku ezingama-365, unyaka wonke uphela. Ndiyabulela. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)
[… that rape and abuse against women and children are not acceptable in the eyes of the people of South Africa and to our government. That is why we have promulgated a long list of laws to protect women and children, since 1994. Even our Constitution protects the rights of women. That is why different government departments ensure that women are protected and I am referring to departments such as the Department of Police and the Department of Justice and Constitutional Development.
That is why, again, we have revived courts in the Police Service that protect children like civil courts, and units. We work together with the Department of Human Settlements, which builds houses and homes of safety for women and children who are abused.
In conclusion, I want to say government cannot take on this responsibility all by itself. This responsibility needs us to work together with the nation at large, especially men and women. I want to appeal to our religious leaders to play an important role in this regard. We want to hear Rev Meshoe preaching on Sundays against the abuse of women and children. [Applause.]
We are going to launch the 16 Days of Activism for No Violence against Women and Children. As we have mentioned before, it is not for women alone; it involves women, men and the nation at large. We hope that our religious leaders and community leaders, together with all men who are dedicated to this campaign, will support us in this massive campaign which we hope to drive for 365 days, the whole year. I thank you. [Applause.]]
STUDY PAINTS WORRYING PICTURE OF SOUTH AFRICA’S COAL RESERVES MINISTER REFUSES TO HAND OVER INTERIM REPORTS OF INTERIM NATIONAL DEFENCE
FORCE SERVICE COMMISSION
(Minister’s Response)
The MINISTER IN THE PRESIDENCY — PERFORMANCE MONITORING, EVALUATION, AND ADMINISTRATION: Mr Speaker, let me quickly respond to two issues which have been raised. The first issue relates to the coal reserves that we have and the energy problems that we are likely to face in the future. Obviously, we are mindful of the fact that coal is a finite resource. But, again, I think we need to admit that, in South Africa, we do not have sufficient capacity for hydroelectricity, which could be one of the most sustainable ways to power our economy.
As we battle to grow our economy, we have to supply energy in the meantime. You would know that we have launched a programme for solar energy — one of the biggest on the continent, if not in the world - to try to address specifically what you are raising. So, we are mindful of that issue and we think that, going into the future, we will be able to merge the renewable energy needs of our economy and industry.
The second point I want to address relates to the issue of the report from the Department of Defence and Military Veterans. It is amazing that the hon member is looking for a report that he has, which even some of us, as members of Cabinet, do not have. He keeps calling on the Minister to deliver the report. Reasons have been given as to why it has not been delivered, and I think those reasons have been accepted by Parliament. The DA might not have accepted them, but Parliament has accepted them. Fortunately, he has the report, so what does he want? Thank you. [Applause.]
DIVISION OF REVENUE AMENDMENT BILL
(Consideration of Report)
There was no debate.
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move:
That the report be adopted.
Motion agreed to.
Report accordingly adopted.
DIVISION OF REVENUE AMENDMENT BILL
(Second Reading debate)
The DEPUTY MINISTER OF FINANCE: Hon Speaker and hon members, section 214 of our Constitution requires that government ensures a transparent and equitable system to divide nationally raised revenue between the three spheres of government. The main Budget, as we all know, announces government spending for the next financial year and preliminary allocations for the two subsequent years. In the middle of each year, the adjustments process provides an opportunity to revise the main Budget in response to changes that have affected planned government spending for that particular year.
The latest Bill passed in 2009, which is the Money Bills Amendment Procedure and Related Matters Act, requires that the Minister of Finance table a Division of Revenue Amendment Bill with the revised fiscal framework if the adjustments budget effects changes in the Division of Revenue Act, which we passed earlier in the year.
The Division of Revenue Amendment Bill tabled in this House, together with the Medium-Term Budget Policy Statement and the Adjustments Appropriation Bill on 27 October, will, for the first time, be processed in terms of the Money Bills Amendment Procedure and Related Matter Act, Act No 9 of 2009. The Division of Revenue Amendment Bill and its underlying allocations are the culmination of extensive consultation processes between national, provincial and local government.
This year’s Division of Revenue Act covers, in detail, all transfers to be made to provinces and municipalities over the next three years. The schedules attached to the Division of Revenue Amendment Bill replace the schedules of the 2010 Division of Revenue Act, which we tabled earlier this year, so as to reflect the updated allocations that take account of adjustments made through the adjustments budget process, and to account for shifts, virements and corrections in the schedules of transfers tabled with the Division of Revenue earlier. The transfers for the two outer years of the Medium-Term Expenditure Framework, MTEF, are not changed and preliminary adjustments to those transfers and the transfers for 2013-14 are shown in the Medium-Term Budget Policy Statement, MTBPS.
The Division of Revenue Amendment Bill is tabled in the face of ongoing global economic uncertainty. Even with the benefit of higher than forecast government revenues, there is still a significant need for prudence, the introduction of austerity measures or the strengthening of existing austerity plans. Members are reminded that levels of government expenditure before the 2008 financial crisis have been maintained, but this was made possible through increased debt.
The adjustments budget makes provision for an additional R7,2 billion to the 2010 Budget. This consists of rollovers, unforeseeable and unavoidable expenditure, higher-than-expected personnel remuneration costs, self- financing expenditure and a saving made in the state debt costs. A R6 billion contingency reserve that was set aside and a projected saving of R3,6 billion at the national level means total expenditure decreases by R2,5 billion. National departments will therefore receive an additional R2,6 billion, provinces R6,1 billion, and municipalities R493 million.
With regard to increased allocations for a range of provincial functions, we have adjusted provincial transfers to cater for a limited number of the many spending pressures that exist in provincial budgets. These are listed hereunder. I will not bore the House with them, because they are there in the adjustments Bill.
Lastly, we also know that in the 2010 Budget the Minister of Finance announced an increase of R10,1 billion to the local government fiscal framework. This adjustment for local government covers, amongst other things, the R391 million added to the local government equitable share to allow the rollover of funds previously held back due to unspent conditional grants. An amount of R92 million was added to disaster relief grants for drought relief for the Mossel Bay Municipality. Ten million rand in rollovers was also added to the water services operating subsidy grants.
Hon Speaker, allow me to express my appreciation to the Minister for his sound leadership, the National Treasury, the entire team for the sterling work that has been put together to produce this Bill, and to the Standing Committee on Appropriations under the steady hand of hon Mshiyeni Sogoni for the contributions to the process of this Division of Revenue Amendment Bill. It is clear that the allocations contained in this year’s Division of Revenue Amendment Bill should put government in a better position to deal with the additional pressures placed on the 2010 Budget that were not known when the 2010 Budget was presented. Thank you. [Applause.]
Mr E M SOGONI: Igama lethu sonke! [It’s our name!]
Hon Speaker, hon members, comrades and distinguished guests — oh, there are no guests — the Budget is a financial instrument which the majority parties the whole world over use to ensure that their policy programmes are brought into effect through the provision of the necessary financial resources. Given that the programmes of the ANC government are targeted towards the poor, service delivery and the Budget are mutually reinforcing elements of a common objective, hence amendments to the Division of Revenue Bill are critical in ensuring that the fiscus does meet the priorities that the ANC has set government in terms of delivery in the different spheres of government.
The spending priorities are budgeted for through an adjustment to already- agreed-upon programmes or where an emergency may have arisen or there is a shift in the programme or responsibilities. These priorities of the ANC government, as set out in the ANC’s 2009 manifesto framework document, are also reflected in the 2010 state of the nation address. Amongst other things, these are: expanding employment and safeguarding social security; improving the quality of education and skills development; enhancing the quality of health care; rolling out a comprehensive rural strategy; creating a built environment and human settlements to support economic growth; having programmes directed towards combating crime and corruption; and prioritising local government challenges.
With respect to the political rationale for an amendment to the Division of Revenue Bill, the key question that arises in this debate is whether the amendments in the Bill address the priorities and challenges that have arisen since the tabling of the Division of Revenue Bill in February, and whether the amendments retain the overall character of the Division of Revenue Bill as being equitable.
The Deputy Minister has also referred to section 214(1) of the Constitution of South Africa, which requires that every year a Division of Revenue Act determines the equitable division of nationally raised revenue between the three spheres of government. The Intergovernmental Fiscal Relations Act prescribes the process for determining the equitable sharing and the allocation of revenue raised nationally.
The resolve to create a better life for all and eradicate poverty through focusing on the ANC’s seven priority areas obviously has an impact upon the decision to amend the Division of Revenue Bill. It follows that the certainty of meeting a priority is strengthened or weakened by the quality or quantity of resource allocation towards its realisation.
We are very mindful of the fact that there are intense and healthy discussions taking place around the intergovernmental fiscal relations and the need for change. This would be obvious since it is only in practice that shortcomings are revealed and the need for change is therefore recommended.
Changes to the local equitable share formula are necessary and we need to examine the SA Local Government Association, Salga, and the Financial and Fiscal Commission, FFC, proposals in this regard.
At the September 2010 national general council of the ANC these concerns were raised and the process of addressing them at our policy conference in 2012 will happen. Concerns over formulas and related matters governing and regulating transfers are part of these ongoing healthy debates.
Whilst this amending Bill cannot address certain critical issues since that falls outside the ambit of this Bill, it is worth mentioning, however, going forward that there are critical issues for the local sphere of government that remain unresolved like the replacement of the Regional Services Council levy.
During the committee public hearings into the Medium-Term Budget Policy Statement, MTBPS, a number of issues have been raised which going forward would need to be discussed as they have a direct bearing upon the division of revenue and subsequent amendments. Many of these relate to local government and the view of the department that additional funding to the baseline would be necessary in defined areas going forward.
The SA Local Government Association, Salga, for instance, had this to say to the committee:
There should be a systematic review of baselines to ensure that the revenue allocations to local government as a whole are congruent with its full range of developmental and service delivery responsibilities and the vertical share of local government meets the increasing demand for municipal services.
The magnitude of the funding should be such that it will enable municipalities to appoint the relevant skilled personnel to manage their finances, human resources, service delivery functions, and core administration. This will address one of the key priorities of the local government turnaround strategy that municipalities are currently implementing.
Availability of credible data on key variables relating to the socioeconomic, demographic and spatial profiles of municipalities needs to be addressed not only to update the data underpinning the formula, but also a more fundamental review of the structure of the formula itself.
The SPEAKER: Hon members on my right: Please reduce the volume of the noise; let the speaker be heard.
Mr E M SOGONI: Hon Speaker, if the hon members on the left could do the same … [Interjections.] The HRSC …
Mr M J ELLIS: Mr Speaker, could we ask the person at the podium …
The SPEAKER: Hon member, please take your seat. Allow the speaker to be heard. Is it a point of something? [Laughter.]
Mr M J ELLIS: I’m not really sure how I would describe it, Mr Speaker. But I was just, you know … it doesn’t matter. [Laughter.] Mr E M SOGONI: Hon Speaker, the Human Sciences Research Council, the HSRC, which was also at the hearings, had this to say about the Medium-Term Budget Policy Statement:
Employment is clearly stated as the government’s top priority; it takes into account the scale of the challenges faced in the areas of poverty, education, and health; it recognises cities as engines of growth requiring more investment in infrastructure to address bottlenecks and backlogs; it recognises that the expanding informal settlements need investment; it provides for faster growth in municipal spending than provincial and national expenditure; it recognises that investment in transport can improve living standards for workers, cut transport costs and increase productivity; and it gives due attention to rural development, youth employment, the Industrial Policy Action Plan, and the Community Works Programme.
I think that the Deputy Minister did mention the issue of the money Bills Act. Clearly, Parliament has been seized with the implications of this. A number of workshops have been held to capacitate members with the obligations of these workshops. But, clearly, I know that some members will raise the fact that there is no parliamentary budget office, but I can say without fear of contradiction that the process for the establishment of a parliamentary budget office is on as – I think that this morning - some documents were delivered to members of the committee. Finally, no committee has approached the Standing Committee on Appropriations to propose amendments after the budget review reports process. I would like to take this opportunity to thank the Minister, the Deputy Minister, National Treasury staff and colleagues of the Standing Committee on Appropriations who really dedicated their time - even after hours – to ensure that the report was passed, and today this amending Bill is being adopted. The ANC supports the passing of the Division of Revenue Amendment Bill. I thank you. [Applause.]
Mr M SWART: Deputy Speaker, the primary objective of the division of revenue to the various spheres of government should be focused on service delivery to the poor and the marginalised. Such service delivery should therefore take place at the level closest to the people and that is, in other words, local government.
National government must, however, ensure that municipalities have both the finances and the human capacity to perform proper service delivery. The millions of rands paid by national government to municipalities annually in the form of grants to augment their income are therefore welcome. The average annual growth over the Medium-Term Expenditure Framework, MTEF, in respect of conditional grants to municipalities is 11,6%.
Unfortunately, control over expenditure of the grant leaves much to be desired. Municipalities often use grants to offset overdrafts at banks or for purposes totally unrelated to the priority objectives for which the grants were made available in the first place. Worse still, is when these grants are simply not spent due to human capacity constraints at municipalities. A major cause of these capacity constraints often lies in the field of cadre deployment and the resultant appointment of employees and managers in local government who are totally unfit for purpose, but who have the right political connections.
A case in point is the devolution of property rates grants. These grants are made available by the Department of Public Works to provinces. Provinces, in turn, pay the grants over to municipalities, for municipal rates and taxes due by government for government buildings, but only after receipt by provinces of specified accounts submitted by municipalities.
As at 30 September this year, R862 million or 79% of the allocated budget for property rates devolution, had already been paid over to provinces by the Department of Public Works. The balance of the allocated budget will be paid over during October. Unfortunately, when one looks at the onward payments to municipalities thus far, a sorry tale unfolds. At the end of August 2010 an amount of R435 million had not yet been transferred or paid over to municipalities and sits in the bank accounts of provinces.
Payments effected to municipalities by KwaZulu-Natal province, for instance, amounted to 35% of monies received; the Eastern Cape 14%; the North West 9%; the Northern Cape 2%; Gauteng 1%; and Mpumalanga 0%. The Free State performed well with a 97% payout. The Western Cape payout amounted to 146% of the budget allocation and was based on proper accounts submitted by Western Cape municipalities
The reasons mainly advanced for the poor payouts to municipalities are delays in issuing of invoices by municipalities, inaccurate billing systems, inaccurate verification and reconciliation of invoices from other municipalities, the new Property Rates Act and unreasonable interest charges. All these reasons point to a serious lack of human capacity at local government level. The result is obviously a shortage of funds which hampers service delivery where it is most needed.
Provinces cannot be blamed for the poor payouts as the fault lies with local government. Despite this, provinces are requesting additional funds for the devolution of property rates. It is questionable whether any funds should be made available until such time as municipalities get their house in order.
To improve capacity, the solution lies in the appointment of the right people at local government level. Such capacity must be at the coalface. The appointment of additional Deputy Ministers will increase government expenditure tremendously, but will not improve service delivery to poverty- stricken communities one iota.
Get rid of underperforming officials and replace them with appointees appointed on merit and not based on political connections. Thank you. [Applause.]
Mr L RAMATLAKANE: Deputy Speaker, from Cope’s side we want to state upfront that we will support the Division of Revenue Amendment Bill. However, we want to raise the following concerns.
Firstly, we agree that the Budget remains a tool for government for service delivery, but when the tool is not used appropriately to deliver service, we must raise our concerns. One of the issues that we have been dealing with is the issue of rollovers - rollovers versus service delivery. In considering this Bill, we must continue to emphasise service delivery, service delivery and, once more, service delivery in terms of the Budget that we are passing, including the Bill itself.
Our second concern is that in terms of the amending money Bill, we get given a particular period of time to consider this Bill to be able to apply our minds in order for us to be able to amend it. We are worried that the steamrolling of the process and the cutting of the time are aimed at ensuring that we do not read the fine print of the Act or the Bill itself, so that we do not see the exact amount of money that continues to bloat the top-heavy executive. We can see that this Bill will continue to put money into the executive, which is in fact going to have a negative impact on service delivery.
Thirdly, we are concerned that this Parliament will remain a rubber stamp for executive capacity. This must be addressed in order for committees to amend the Budget itself. Unless that is addressed, we will end up sounding like a broken record every time we raise this matter.
When the Budget is referred to the committee and the committee is not given appropriate capacity to consider the Budget and to make a meaningful contribution and intervention, we can say that we have the Bill but having the appropriate capacity will remain a distant dream. From our side we believe that the capacity of the committee must be put in place so that we can deal with the issue of service delivery and appropriate service delivery so that as this Parliament we pass this Act.
Having said that, the issue that has been raised, including the issue of spending capacity, remains a concern for the committee. Municipal and provincial government capacity to implement the capacity to deliver has to do with skills. Maybe when we deal with a Public Service that is integrated, we will be able to address this particular concern, but otherwise we will be supporting the Bill. Thank you. [Applause.] Mr J H VAN DER MERWE: Madam Deputy Speaker, the importance of this Bill lies not so much in what it says but, rather, in the fact that it is developing one of the most important powers of a democratic Parliament, namely that we are now enabled to amend the Budget and other money Bills.
After 16 years of democracy, Parliament is now exercising the important power embodied in the following statement: “There shall be no taxation before representation.” We have the power to amend not only Bills which change or raise new revenues, but also those which authorise the state to spend money so raised. We should not forego this power by not using it.
One must also welcome the fact that the process of allocating revenues amongst the various spheres is based on a five-year programme. We welcome the fact that more money is given to the lower spheres of government in an overall shift of resources equal to approximately 10%, as that shows our government is placing greater emphasis on delivery. The lower the allocation of money to the people, the greater the benefit the money will have for the people.
The IFP supports the Bill because it is also good for democracy and it is good for good governance. Thank you.
Mr J P GELDERBLOM: Hon Deputy Speaker, hon members, comrades and guests, the ANC welcomes the introduction of this amending Bill and supports its passing by the House today. An important element of this Bill deals with allocations to local government and rural development - Mr Ellis, it is not a statement today; do not worry! – and land reform and agriculture. I will focus on these aspects of the Bill.
The ANC’s approach to democratic governance is that local government is not only important for exercising individual autonomy and liberty in a functioning, democratic dispensation, but it is also a central feature of a developmental state that gives priority to the people in terms of the provision of public goods.
The central role of local government in development and service delivery is well articulated in the Constitution of the Republic. Chapter 7 section 153 states that:
A municipality must —
a) structure and manage its administration and budgeting and
planning processes to give priority to the basic needs of the
community, and to promote the social and economic development of
the community; and
b) participate in national and provincial development programmes.
In recognition of the realities of uneven development in our country and the terrible legacy of previous apartheid spatial planning, the Constitution further promotes a redistributive approach to financing in our governance system. Chapter 13, section 227 stipulates that:
(1) Local government and each province —
a) is entitled to an equitable share of revenue raised nationally
to enable it to provide basic services and perform the
functions allocated to it; and
b) may receive other allocations from national government revenue,
either conditionally or unconditionally.
The Bill proposes adjustments for certain areas of local government. We need to acknowledge the fact that without capacity, local government will not meet its constitutional obligations. In this regard, the municipal systems improvement grant, the purpose of which is to assist municipalities in building in-house capacity to perform their functions and stabilise institutional and governance systems, will receive R212 million this financial year. This will grow to R224 720 million in 2011-12, and up to R235 million for 2012-2013.
The local government financial management grant, the purpose of which is to promote and support reforms in financial management by building capacity in municipalities to implement the Financial Management Act, is allocated R364 589 million for 2010-11, R384 641 million for 2011-12, and R403 873 million for 2012-13.
The revised allocations and the increase in the total baseline allocations to local government have to be welcomed. This is particularly significant in the sense that additional allocations are focused on infrastructure and areas of maximum economic development potential.
Water services and infrastructure are critical for the achievement of our goals for rural development, land reform and food security. They are consistent with our development priorities as stated in the ANC election manifesto which commits government to implementing a comprehensive rural and agricultural development and land reform programme. Food security for the most vulnerable rural sectors receives a grant allocation to assist farming communities to achieve an increase in agricultural production and to enhance a sustainable conservation of natural resources through a community-based priority approach. Coupled with this, job opportunities are created through the Expanded Public Works Programme, which will generate much-needed revenue opportunities.
Ons is ook baie dankbaar vir die R50 miljoen wat vir die Wes-Kaap bewillig is om te kyk na die droogte-geteisterde gebiede. In die verlede is hierdie geld aangewend by die plekke waar die behoefte die grootste is. In ’n groot mate het die bystand van Agri Wes-Kaap ’n groot rol gespeel by insette rondom die identifisering van hierdie droogte-geteisterde gebiede. Ek wil graag die Minister versoek om op ’n gereelde basis hierdie proses to monitor sodat die werklike droogte-geteisterde gebiede nie oorgeslaan word ten gunste van politieke gewin nie. Ons moet nooit die armste van die armes op die landbou-akker vergeet nie.
Dieselfde behandeling is ook van toepassing op kommersiële boere en opkomende boere wat finansieël baie swaar kry. Ek pleit dus dat die toedeling van hierdie fondse te alle tye op ’n regverdige, eerbare en wetenskaplike wyse sal plaasvind. Minister, ek laat dit in u bekwame hande. (Translation of Afrikaans paragraphs follows.)
[We are also very grateful for the R50 million which has been allocated to the Western Cape for use in drought-stricken areas. In the past, this money was utilised in places where the need was the greatest. To a large extent the contribution of Agri Western Cape played a big role with inputs around the identification of these drought-stricken areas. I would like to request the Minister to monitor this process regularly, to prevent the real drought- stricken areas from being overlooked in favour of political gain. We must never forget the poor people who are working the land.
The same treatment can also be applicable to commercial farmers and emerging farmers who are struggling financially. Therefore, I want to urge that the allocation of these funds must at all times take place in an equitable, honourable and scientific manner. Minister, I leave it in your capable hands.]
Water infrastructure in the development of agriculture forms a critical part of the government’s Comprehensive Rural Development Programme. Although this programme is led by the Department of Rural Development and Land Reform, its ultimate implementation and achievement is dependent on local government and its capacity to deliver. The role of local government in building and developing an agricultural economy in our country should not be underestimated and, therefore, building water infrastructure must be given priority.
The additional allocations in this adjustment address a critical area of water infrastructure in local government and the equitable share, which is important for the development of our agricultural economy. On this basis, the ANC supports the amending Bill.
HON MEMBERS: Malibongwe! [Praise!] [Applause.]
Mr S Z NTAPANE: Hon Deputy Speaker, as a consequence of the adjustments Budget, we are gathered here today to make consequential changes to the division of revenue. As I said when we debated the division of revenue in March, the division of revenue is a vital instrument that provides the first step in the process of service delivery.
It is necessary and logical that a large proportion of the revenue should be channelled towards the provinces and municipalities. These two tiers of government have constitutional service delivery mandates. What is more, they are, by virtue of proximity, supposedly better placed to deliver. We are nonetheless faced with a contrary, but incontrovertible reality that these spheres of government have a dismal track record.
It is a matter of deep concern that provinces and councils, usually those that are responsible for the poorest regions of our country, are incapable of properly spending the funds allocated to them. Some provinces, such as the Eastern Cape, are repeat offenders when it comes to the failure to spend vital funding. The political leadership of these administrations are quick to rebuff any criticism or complaint about lack of service delivery, but year in and year out they are guilty of not spending billions of rand.
Thus we look upon this Division of Revenue Bill with trepidation. We cannot disagree with it, yet we have serious reservations about the ability of this division to result in the same proportion of delivery. Conditional grants do not resolve this problem. At the heart of the matter is a severe lack of skills, coupled with an institutional culture that celebrates ineptitude and turns a blind eye to cronyism and tender fraud.
National government will simply have to improve its ability to monitor the spending of provincial and local governments. One of the leading causes of delivery failures and one the key reasons why the division of revenue does not produce the intended results is the countless vacancies at provincial and municipal levels in critical areas such as financial management and engineering.
As the UDM has indicated before, government is missing an opportunity. It could improve service delivery by providing jobs for qualified skilled professionals, whilst reducing reliance on expensive consultants. It will require political will to ensure that these positions are filled, because by their nature such positions will put the brakes on the gravy train. The UDM supports the Bill. Thank you, hon Deputy Speaker.
Mr S N SWART: Deputy Speaker, section 12(4) of the money bills amendment Act requires that the Minister of Finance must table a Division of Revenue Amendment Bill with the revised fiscal framework, if the adjustments Budget effects changes to the Division of Revenue Act for the relevant year, and that is to enable us as Parliament to exercise our powers and to investigate fully those amendments.
In this case, we’ve seen the adjustments for 2010 which concern the Division of Revenue Act and hence this Bill. So we’ve seen that the revised provincial allocations include R4,2 billion being added, which includes R3,8 billion for higher salary and housing allowance costs; R350 million to cover the costs of occupation-specific dispensation agreements in health; R769 million towards the devolution of the property rate funds grant to provinces; and there are a number of other figures for provincial allocations.
What is crucial is for us as parliamentarians to fully interrogate those figures against the background of what the Minister of Finance has said. There are also additional allocations of R1,8 billion to the local government equitable share, including R92 million for drought relief in Mossel Bay, which the ACDP welcomes.
In exercising our oversight functions, we need to ensure that these additional allocations are spent on the purposes for which they’ve been appropriated. Of great concern to us is that, according to the Medium-Term Budget Policy Statement, capital expenditure continues to underperform in terms of the budgeted amounts, with an estimated R12,9 billion in capital underspending by provincial and local governments for the past financial year.
We as parliamentarians must ensure that both provinces and municipalities have the capacity to spend these vast sums of money allocated and that such rollovers do not happen again, particularly in view of the new powers we have in terms of the money bills amendment Act. Notwithstanding this, however, the ACDP will support this Bill. I thank you. [Applause.]
Dr P J RABIE: Hon Deputy Speaker, hon Ministers, hon Deputy Ministers, hon members, this Bill was tabled in Parliament on 27 October 2010 by the Minister of Finance. The Bill in essence contains a number of clauses that allow unconditional and conditional allocations to provinces and municipalities.
The Appropriations committee was fortunate to have public engagements with the National Treasury and various other public research institutions and civil society organisations. Two issues can be regarded as top priority: one, the lack of employment in rural and urban areas; two, the lack of delivery regarding sanitation, education, water, health and housing, which requires that the private and the public sectors admit that we have a delivery crisis of major proportions and provide solutions timeously.
Allow me to refer briefly to health and local government as another two pressing issues. According to the Human Sciences Research Council in their submissions to the Appropriations committee, five and a half million people in South Africa are HIV-positive, and women aged between 15 and 29 record levels of HIV of up to 33%. These figures have wide ramifications for our future growth. Of the 237 local municipalities, 26 or 11% can be classified as high- capacity municipalities. One hundred and twenty, or 51%, of all the municipalities in our country can be classified as medium-capacity municipalities, and 91 or 38% can be classified as low capacity.
The municipal infrastructure grant, MIG, expenditure will be R12,529 billion by 2011, and will grow to R18 billion by 2012-13. Studies, however, show that the quality of infrastructure being delivered is not up to standard and the maintenance of existing infrastructure leaves a lot to be desired. A survey conducted by the Department of Co-operative Governance and Traditional Affairs showed that 48% of the MIG projects experienced problems, for example contractor quality was poor, design failure was common and there were a number of other pressing issues.
What is clear is that Parliament and the Appropriations committee will have to play a greater role in future regarding the expenditure of government. Parliament approved the money bills amendment Act in April 2009. This Act provides for the formation of a budget office to assist the Finance and Appropriations committees in their deliberations about budgets. It is a deplorable state of affairs that after nearly two years the budget office has not been established despite promises by the Speaker to this effect. Madam Deputy Speaker, this is really long overdue.
The Money Bills Amendment Procedure and Related Matters Act further prescribes certain procedures and timeframes to be followed when approving the Division of Revenue Bill. For example, it prescribes that a period of nine parliamentary days should elapse after approval of the fiscal framework before the Division of Revenue Bill is approved. The purpose of this is to give the Appropriations committee the opportunity to liaise with portfolio committees and other stakeholders regarding the division of revenue. In this case, the procedure was not followed as only three days have elapsed after approval of the fiscal framework, and we are, strictly speaking, not legally compliant in approving the Division of Revenue Amendment Bill today.
Another factor to be considered is the necessity for the skills within our present municipalities to be upgraded or insourced, and this was mentioned by quite a number of other speakers. It is my considered opinion that it is a myth that we have a human capacity crisis. There are many technically competent officials in South Africa. The solution is to appoint people on merit, and not on race or other variables. This is why municipalities such as Theewaterskloof and Overstrand are well run. The DA supports the Division of Revenue Amendment Bill. I thank you. [Applause.]
Ms R J MASHIGO: Hon Deputy Speaker, Ministers and hon Members of Parliament, a government that cares about and serves its people should characterise itself by the persistent practice of not only assessing the needs of the people, but also seeking to divide its revenue in a manner that best suits such needs.
At the apex of the ANC-led government’s priorities is education, along with, inter alia, health and human settlements. This prioritisation has led us to gather here today to divide the revenue, and let us do so with the full consciousness that South Africa is not a federal state but a united Republic.
We find that section 41 of the Constitution clearly states that all spheres of government and all organs of state within each sphere must preserve the peace, national unity and indivisibility of the Republic, and must secure the wellbeing of the Republic. We are one nation, hon members, despite the fact that we have nine provinces.
South Africa is a developmental state and this sets the national agenda that informs how revenue is divided among its three spheres of government. This ensures that provinces and municipalities are in collaboration so that the priorities which we have set for ourselves are met and so that our people are equitably served in a manner that reinforces their fundamental right to human dignity.
As I have already mentioned, education is our apex priority and the division of revenue should reflect that as South Africans we have resolved to build an appropriately skilled people that fits like a cog into the wheels of our economy. It pleases us that, when considering Millennium Development Goal 2, universal primary education, South Africa is likely to achieve a 95% literacy rate for the 15 to 24-year-old age group in 2015. This is a good achievement.
However, we realise that this is a quantitative figure, and having achieved that quantitative figure, we ought also to be motivated to turn the quantity into requisite quality. We at all times need to have a gendered approach to our community and our development, this notwithstanding the fact that our country has been patriarchally directed.
Millennium Development Goal 3 promotes gender equality and women empowerment. By adopting a gendered approach to education we find that our education system is intertwined with the Millennium Development Goals, MDGs. Thus, from the ANC’s point of view, social transformation and the MDGs are addressed through this division of revenue.
We go further by saying that we welcome the allocation of R4,2 billion to Basic Education with the keen realisation that the bulk of it will go towards the National School Nutrition Programme. We appreciate that, because we know that no child can be taught on an empty stomach.
Through this allocation, this division of revenue also addresses MDG 1, which is concerned with the eradication of poverty. However, we wish to state that we hope that more is being allocated towards the upskilling and training of teachers so that they can improve the quality of education. This is the core business of education. We want to see it in the thorough training of children, starting from their entrance into the schooling system. This will show that admission standards are high, but will require the involvement of teachers with better qualifications.
Still, we feel that this only concentrates on two components, namely the learner component and the teacher component. We have left out the parent component of the school governing bodies, SGBs, especially those in the underdeveloped communities. This means that they have lagged behind.
We hope that, when dealing with this, the Ministries dealing with education will make sure that the parent component is empowered and educated to perform the governance part of their involvement. This will enable us to see better qualifications all round and allow us to say that we have achieved the overall intention of the MDGs.
We welcome the R3,8 billion grant allocated to FET colleges. It will act as a stimulus that will serve to increase the capacity of FET colleges and thus render them centres of first choice for school leavers as they would offer market-related skills. This will address the skills deficit.
Our other commitments, hon members, are MDG 4, which is concerned with child mortality; MDG 5, which is concerned with maternal health; and MDG 6, which is concerned with the combating of HIV and Aids, tuberculosis and other diseases. As a result, we welcome the R9,1 billion that has been set aside for Health. We remain convinced that a country that cares about the health of its people is a country bound for greater heights. Section 27 of our Constitution outlines how important health promotion is. We also believe that health is a fundamental human right and that the two cannot be separated.
Our Constitution tells us about the dignity of the people. Our people were dehumanised, denied citizenship rights and denied ownership of property in South Africa. In this regard, we welcome the R15 billion set aside to fund the creation of sustainable human settlements. We, however, want to add that we need to learn from past mistakes at the contractor and subcontractor level that tended to hobble the process of the creation of human settlements.
We applaud the Minister of Human Settlements for the action he has taken against people who really undermined the dignity of our people by building them dehumanising types of houses.
I further wish to call upon all of us to protect the poor beneficiaries who lose their houses to unscrupulous forces who take advantage of their dire economic straits and buy their properties from them for a song.
In conclusion, I would like to say that the ANC remains the only legitimate hope, leader, and liberator of our people from the legacy of inequality, deprivation, poverty, disease, and indignity. Therefore the ANC shall never fail to build and sustain a skilled, healthy society with dignified, united, nonsexist, nonracial, and prosperous people. We should all vote for the ANC.
I would like to thank the Speaker, the hon Max Sisulu, for publishing the report on the money Bills. He especially calls on the four committees to look into that report and move forward on how we address the money Bills. What is lacking? We know our powers are there. As the four committees of Finance, supported by other committees, let’s work towards getting the budget office. It will really help us and it will help us to get the IFP to come and join us in our meetings so that they will know what they are doing. The ANC supports the Bill. Thank you very much. [Time expired.] [Applause.]
The DEPUTY MINISTER OF FINANCE: Thank you, Deputy Speaker. And thank you to all members for supporting this important piece of legislation. As we have indicated, this is consequential to us having made adjustments to the Adjustments Appropriation. However, several pertinent points have been raised by members.
Mr Sogoni, the chairperson, raised the matter of the review of the equitable share. Indeed, there is a process under way to reform the formula and it deals with challenges in both urban and rural areas.
Also, the issue of the baseline share is not the only challenge that municipalities face. They also face the issue of being required to improve their own revenue collection.
The issue of the funding of district municipalities also needs to be informed by the functions that they need to perform. The roles and responsibilities between the local and district municipalities remain a challenge at the moment.
Mr Swart, I agree with you that all steps must be taken to ensure that conditional grants are correctly spent. National transferring officers responsible for grants should use the mechanisms provided for in the Division of Revenue Act, including starting with the building of capacity in municipalities to spend the funds efficiently and effectively.
However, there could also be a need to delay and withhold the allocations, as we have done in the past, in order to ensure that funds are only transferred as and when that should be done. Mr Ramatlakane raised the issue of the devolution of the property rates fund grant that goes to provinces to allow them to pay municipal rates and services, which were formerly paid by the Department of Public Works. This grant will remain in place until the required level of funding is fully understood. It is not meant to deal with the inefficiencies of property rates collection by municipalities.
The issue of rollovers versus spending was raised. Rollovers are dealt with through a very rigorous process. We do not just allow for there to be rollovers. Steps are taken to ensure that monies are spent in the year allocated. Should there be a need for rollovers, they go through a process in which we actually ensure that it is only funds that have been committed and that have not been spent and that there were good reasons for those funds not being spent. It is only then that they are approved.
Mr Ntapane raised the issue of municipalities and provinces having a dismal track record. Hon member, government is committed to ensuring improved service delivery. Targets set in the outcomes will also go a long way towards dealing with the issue of improving service delivery.
The Minister, on tabling the Medium-Term Budget Policy Statement, also tabled some drastic steps that we have put in place and that we are considering in order to address corruption, even though much has been done to get clean and accountable government.
I think it would be appropriate just to thank the members for giving their support. As Mr Van der Merwe indicated, Ke batla ho tsamaya [I want to go]. [Laughter.] Thank you very much, Deputy Speaker. [Applause.]
The DEPUTY SPEAKER: Thank you, Deputy Minister. I can see that the hon Van der Merwe is intimidated because you have finished early.
Debate concluded.
Bill read a second time.
CONSIDERATION OF BUDGETARY REVIEW AND RECOMMENDATION REPORT OF THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM ON PERFORMANCE OF DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM FOR FINANCIAL YEAR 2009-10
CONSIDERATION OF BUDGETARY REVIEW AND RECOMMENDATION REPORT OF PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION ON PERFORMANCE OF DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION FOR FINANCIAL YEAR 2009-10
CONSIDERATION OF BUDGETARY REVIEW AND RECOMMENDATION REPORT OF PORTFOLIO COMMITTEE ON DEFENCE AND MILITARY VETERANS ON PERFORMANCE OF DEPARTMENT OF DEFENCE AND MILITARY VETERANS FOR FINANCIAL YEAR 2009-10
CONSIDERATION OF JOINT BUDGETARY REVIEW AND RECOMMENDATION REPORT OF PORTFOLIO COMMITTEE ON BASIC EDUCATION AND PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON BASIC EDUCATION AND HIGHER EDUCATION AND TRAINING
CONSIDERATION OF BUDGETARY REVIEW AND RECOMMENDATION REPORT OF PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS ON PERFORMANCE OF DEPARTMENT OF WATER AND ENVIRONMENTAL AFFAIRS FOR 2009-10 FINANCIAL YEAR
CONSIDERATION OF BUDGETARY REVIEW AND RECOMMENDATION REPORT OF PORTFOLIO COMMITTEE ON PUBLIC WORKS ON PERFORMANCE OF DEPARTMENT OF PUBLIC WORKS FOR THE 2009-10 FINANCIAL YEAR
CONSIDERATION OF BUDGETARY REVIEW AND RECOMMENDATION REPORT OF PORTFOLIO COMMITTEE ON INTERNATIONAL RELATIONS AND CO-OPERATION ON PERFORMANCE OF THE DEPARTMENT OF INTERNATIONAL RELATIONS AND CO-OPERATION FOR THE 2009-10 FINANCIAL YEAR
There was no debate.
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson I move:
That the reports be adopted.
Motion agreed to.
Budgetary Review and Recommendation Report on Performance of Department of Rural Development and Land Reform for financial year 2009-10 accordingly adopted.
Budgetary Review and Recommendation Report on Performance of Department of Public Service and Administration for financial year 2009-10 accordingly adopted.
Budgetary Review and Recommendation Report on Performance of Department of Defence and Military Veterans for financial year 2009-10 accordingly adopted.
Joint Budgetary Review and Recommendation Report on Basic Education and Higher Education and Training accordingly adopted.
Budgetary Review and Recommendation Report on Performance of Department of Water and Environmental Affairs for 2009-10 financial year accordingly adopted.
Budgetary Review and Recommendation Report on Performance of Department of Public Works for the 2009-10 financial year accordingly adopted.
Budgetary Review and Recommendation Report on Performance of the Department of International Relations and Co-operation for the 2009-10 financial year accordingly adopted.
The House adjourned at 15:44. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
ANNOUNCEMENTS
National Assembly
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Membership of Committees
1) The following members have been nominated by their parties to serve on the Ad Hoc Joint Committee on Code of Judicial Conduct and Regulations on Judges’ Disclosure of Registrable Interests:
African National Congress Sibanyoni, Mr JS Jeffery, Mr JH Ndabandaba, Mr LBG Sithole, Ms SCN Landers, Mr LT Malale, Mr MI Nelson, Mr WJ Ngwenya-Mabila, Ms PC Democratic Alliance Smuts, Ms D Schmidt, Adv. H Congress of the People Koornhof, Mr N Inkatha Freedom Party Van der Merwe, Mr JH 2) The following changes to Committee membership have been made by the ID: Portfolio Committee on Science and Technology Discharge: Greyling, Mr L Portfolio Committee on Trade & Industry Discharge: Greyling, Mr L Portfolio Committee on Economic Development Discharge: Greyling, Mr L Portfolio Committee on Mining Discharge: Greyling, Mr L Portfolio Committee on Water and Environmental Affairs Appointed: Greyling, Mr L (Alternate) Portfolio Committee on Police Discharge: Hoosen, Mr H Portfolio Committee on Basic Education Discharge: Hoosen, Mr H Appointed: Hoosen, Mr H (Alternate) Portfolio Committee on Home Affairs Discharge: Mcgluwa, Mr J Appointed: Mcgluwa, Mr J (Alternate) Portfolio Committee on Cooperative Governance and Traditional Affairs Appointed: Mcgluwa, Mr J Portfolio Committee on Social Development Appointed: Paulse, Ms S Portfolio Committee on Sport and Recreation Appointed: Paulse, Ms S (Alternate) -
Vacancy in Icasa
1) A letter dated 22 October 2010 has been received from the Minister of Communications – a) informing the Assembly that the term of office of Dr M Socikwa, a councillor of the Independent Communications Authority of South Africa (Icasa), will expire on 31 March 2011; and b) requesting the Assembly to commence with the process of filling the vacancy in terms of section 5 of the Independent Communications Authority of South Africa Act, 2000 (Act No 13 of 2000).
Referred to the Portfolio Committee on Communications for consideration and report. -
Referral to Committees of papers tabled (1) The following paper is referred to the Committee on Public Accounts for consideration and to the Portfolio Committee on Human Settlements:
(a) Letter from the Minister of Human Settlements, dated 20 October 2010, to the Speaker of the National Assembly, explaining the delay in the submission of the Annual Report of Servcon Housing Solutions (Pty) Ltd (Servcon) for 2009-10.2) The following paper is referred to the Portfolio Committee on International Relations and Cooperation for consideration and report. The report of the Auditor-General on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the African Renaissance and International Co-operation Fund for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10.
(3) The following papers are referred to the Portfolio Committee on International Relations and Cooperation:
(a) Agreement between the Government of the Republic of South
Africa and the Government of the Republic of Uganda for the
establishment of a Joint Commission of Cooperation, tabled in
terms of section 231(3) of the Constitution of the Republic of
South Africa, 1996.
(b) Explanatory Memorandum to the Agreement between the
Government of the Republic of South Africa and the Government
of the Republic of Uganda for the establishment of a Joint
Commission of Cooperation.
(4) The following paper is referred to the Portfolio Committee on Correctional Services for consideration and report:
(a) Report and Financial Statements of the Judicial
Inspectorate for Correctional Services for 2009-10 [RP260-
2010].
5) The following paper is referred to the Standing Committee on
Finance and to the Committee on Public Accounts:
(a) Consolidated Financial Information for the year ended 31
March 2010 [RP265-2010], tabled in accordance with section 8 of
the Public Finance Management Act, 1999 (Act No 1 of 1999).
6) The following paper is referred to the Standing Committee on
Finance for consideration and report. The report of the Auditor-
General on the Financial Statements and Performance Information is
referred to the Committee on Public Accounts for consideration:
a) Report and Financial Statements of the Reconstruction and
Development Programme (RDP) Fund for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP264-2010].
7) The following paper is referred to the Portfolio Committee on
Police for consideration and report. The report of the Auditor-
General on the Financial Statements and Performance Information is
referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Private Security
Industry Regulatory Authority for 2009-10, including the Report
of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP205-2010].
8) The following paper is referred to the Portfolio Committee on
Higher Education and Training for consideration and report. The
report of the Auditor-General on the Financial Statements and
Performance Information is referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the Services Sector
Education and Training Authority (Services-Seta) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP114-
2010].
(9) The following paper is referred to the Portfolio Committee on Public Service and Administration for consideration:
(a) Report of the Public Service Commission (PSC) on the State
of the Public Service for 2010 [RP262-2010].
COMMITTEE REPORTS
National Assembly
This report replaces the Report of the Standing Committee on Appropriations on the 2010 Division of Revenue Amendment Bill that was published on 3 November 2010.
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Report of the Standing Committee on Appropriations on the Division of Revenue Amendment Bill, dated 02 November 2010
HAVING CONSIDERED THE DIVISION OF REVENUE AMENDMENT BILL [B35-2010], THE STANDING COMMITTEE ON APPROPRIATIONS, REPORTS AS FOLLOWS:
- BACKGROUND Section 12 of the Money Bills Amendment Procedure and Related Matters Act, No. 9 of 2009 (the Act) requires the Minister of Finance to table the Division of Revenue Amendment Bill together with the revised Fiscal Framework if the adjustments budget effects changes to the Division of Revenue Act (DoRA) for the 2010/11 financial year. This is intended to foster transparency and ensure smooth intergovernmental relations. 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.
In enforcing section 77 of the Constitution, the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 was enacted. This budget reform empowers Parliament to amend the government budget and therefore plays a greater role in ensuring that the most urgent needs of South Africans are addressed. It provides Parliament with necessary instruments to oversee government actions and monitor its fiscal discipline. While this reform is widely welcomed, the Standing Committee on Appropriations (the Committee) is mindful that this legislation will be phased in over the years. The Committee’s concern and focus is on the establishment of the Parliamentary Budget Office that will provide more support to enable the Committees on Finance and Appropriations to fulfil their legislative responsibilities.
The Division of Revenue Amendment Bill was tabled in Parliament on 27 October 2010 by the Minister of Finance during the submission of 2010 Medium Term Budget Policy Statement (MTBPS).
Clause 1 (the focus of this brief) of the Bill provides for the substitution of Schedules 1 to 8 of the Division of Revenue (DoRA) for Schedules 1 to 8 of the Bill. The Schedules to the Bill address the following matters: • Additional unconditional and conditional allocations to provinces and municipalities; • The allocation of unallocated conditional allocations to provinces and municipalities; • The re-allocation of conditional allocations in terms of section 18 of the DoRA; • Roll-overs of conditional allocations to provinces and municipalities not transferred by national departments during the 2009/10 financial year; • Increases to a conditional allocation to a province or municipality through virements under section 43 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) or section 28(2)(d) of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003), as the case may be; and • The re-allocation of conditional allocations that were not correctly reflected in the Schedules to the DoRA.
- Equitable division of revenue raised nationally among the spheres of government Table 1: Schedule 1 | |Column A |Column B |Column C | |Sphere of | | | | |Government | | | | | |2010/11 |2010/11 |Amount | | |allocation |adjustments |adjusted | | | | | | | |R’000 |R’000 |R’000 | | | | | | |National | | | | | | | | | | |527 001 492 |519 980 624 |7020868 | |Provincial |260973745 |265139448 |-4165703 | |Local |30167706 |30558566 |-390860 | |Total |818142943 |815678638 |2464305 |
National Treasury (2010) [adapted]
The adjustments ended up in a net reduction of R2.4 billion whereby expenditure estimates levels decreased from R818.1 billion to R815.7 billion. The total allocations to national departments decreased by R7.0 billion, allocation to provinces increased by R4.1 billion and allocations to local government increased by R0.3 billion. In effect the general decrease will not impact on provincial and local spheres of government like on the national sphere of government where allocations were reduced. It is clear the reduced allocations are due to shortfall in the unexpected revenue collected. Budget spending projections also make provision for about R3.6 billion in under spending at a national level (including declared savings). Offsetting this R9.6 billion available on the main budget against the R7.2 billion in the adjustments budget, the total estimated level of spending decreases to R2.5 billion. In terms of section 6(1) of the DoRA if actual revenue raised nationally in respect of the financial year falls short of the anticipated revenue set out in Schedule 1, the national government bears the shortfall and in terms of section 6(2) of the DoRA if actual revenue raised nationally in respect of the financial year exceeds the anticipated revenue set out in Schedule 1, the excess accrues to the national government, subject to subsection (3).
- Determination of each province’s equitable share of the provincial sphere’s share of revenue raised nationally
Table 2: Schedule 2 | |Column A |Column B |Column C | |Province | | | | | |2010/11 |2010/11 |Amount | | |allocation |adjustments |adjusted | | | | | | | |R’000 |R’000 |R’000 | | | | | | |Eastern | | | | |Cape | | | | | |40134424 |40789918 |-655494 | |Free State |15959310 |16217212 |-257902 | |Gauteng |45134335 |45869090 |-734755 | |KwaZulu |56742834 |57632201 |-889367 | |Natal | | | | |Limpopo |33237814 |33766574 |-528760 | |Mpumalanga |21323198 |21640037 |-316839 | |Northern |7101615 |7201470 |-99855 | |Cape | | | | |North West |17314124 |17567122 |-252998 | |Western |24026091 |24455824 |-429733 | |Cape | | | | |Total |260973745 |265139448 |-4165703 |
National Treasury (2010) [adapted]
The current adjustments resulted in the expenditure level estimates in provinces increasing from R260.9 billion to R265.1 billion with each province, KwaZulu Natal increased by R0.889 billion, Gauteng R0.734 billion, Eastern Cape by R0.655 billion, Limpopo by R0.528 billion, Western Cape by R0.429 billion, Mpumalanga by R0.316 billion, North West by R0.252 billion and Northern Cape by R0.099 billion respectively.
- Roll Overs held back due to the unspent conditional grants by local government sphere Table 3: Schedule 3 | |Column A |Column B |Column C | |Province | | | | | |2010/11 |2010/11 |Amount | | |allocation |adjustments |adjusted | | | | | | | |R’000 |R’000 |R’000 | |Eastern Cape |4450185 |4453126 |-2941 | |Free State |2805978 |2831056 |-25078 | |Gauteng |5445197 |5445197 |0 | |KwaZulu-Natal |5533344 |5712667 |-179323 | |Limpopo |3666434 |3678434 |-12000 | |Mpumalanga |2803310 |2909548 |-106238 | |Northern Cape |909198 |929810 |-20612 | |North West |2563886 |2599921 |-36035 | |Western Cape |30167706 |30558566 |-390860 | |Total |58345238 |59118325 |-773087 |
National Treasury (2010) [adapted]
Except for Gauteng, all provinces experienced roll overs due to the unspent conditional grants by local municipalities. Although the Committee has noted the rolling over of funds; there is still a need for more clarity to further explain the circumstances leading to such under expenditure especially with regard to funds that are supposed to support the extension of free basic service to the indigents. On the other hand, the Committee need to ensure that these funds target critical needs such as indigents, repairs and maintenance of ageing infrastructure. In Eastern Cape, four municipalities received increased allocations- Sunday’s River Valley Municipality received increased allocations from R25.7 million to R26.1 million, Nxuba Municipality increased allocations from R16.2 million to R16.3 million, Inxuba Yethemba Municipality received increased allocations from R32.8 million to R34.2 million, Senqu Municipality received increased allocations from R66.4 million to R66.8 million.
In Free State, five municipalities received increased allocations – Kopanong an increase from R72.7 million to R78.0 million, Mantsopa an increase from R53.9 million to R55.1 million, Motheo District an increase from R 152.3 million to R152.7 million, Phumelela an increase from R44.2 million to R45.1 million and Metsimaholo an increase from R79.0 million to R143.9 million.
In KwaZulu-Natal, seven municipalities received additional allocations – Vulamehlo an increase from R24.5 million to R25.6 million, uMuziwabantu an increase from R30.3 million to R31.3 million, Zululand District an increase from R198.6 million to R215.4 million, Jozini an increase from R48.5 million to R54.1 million, Hlabisa from R39.2 million to R43.7 million, KwaDukuza an increase from R50.9 million, and Ubuhlebezwe an increase from R35.4 million to R42.3 million.
Limpopo’s total allocations increased from R3.6 billion to R3.7 billion where three municipalities received additional allocations – Makhuduthamaga received an increase from R107.3 million to R111.8 million, Molemole an increase from R57.0 million to R61.3 million and Thabazimbi an increase from R45.1 million to R48.2 million.
In Mpumalanga, municipalities received additional allocations from R2.8 billion to R2.9 billion whereby four municipalities received additional allocations as follows – Mkhondo an increase from R73.3 million to R80.8 million, Thabachweu an increase from R59.5 million to R62.6 million, Mbombela an increase from R247.6 million to R295.9 million and Bushbuckridge an increase from R339.7 million to R387.1 million.
Northern Cape received an additional R612 million whereby five municipalities received additional allocations – Hantam received an increase from R15.6 million to R17.4 million, Karoo Hoogland received an increase from R10.1 million to R12.1 million, Ubuntu received an increase from R13.9 million to R16.7 million, //Khara Hais received an increase from R40.5 million to R45.4 million, and Sol Plaatjie received an increase from R121.7 million to R130.9 million.
North West received an additional R360.3 million whereby five municipalities received additional allocations – Moses Kotane received an increase from R179.2 million to R186.4 million, Mafikeng received an increase from R96.3 million to R102.4 million, Kagisano received an increase from R42.8 million to R49.4 million, Ventersdorp received an increase from R35.2 million to R37.6 million and Tlokwe received an increase from R69.0 million to R82.8 million.
Western Cape received an additional R390.8 million whereby four municipalities received additional allocations – Matzikama received an increase from R27.1 million to R31.3 million, Bergrivier received an increase from R18.7 million to R20.9 million, Overstrand received an increase from R26.9 million to R28.0 million and George received an increase from R58.2 million to R59.3 million.
- Allocations to provinces to supplement the funding of programmes or functions funded from provincial budgets
This Schedule comprises of a number of conditional grants and the only grant that has changed is the Further Education and Training Colleges Grant which received an additional R31.2 million during the adjustment period. According to the National Treasury 2010/11 First Quarterly Reports, there was no spending for Further Education and Training grants as at 30 June
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While the Committee welcomes the increase, the Committee is concern that less expenditure in the first quarter would negatively impact on the second quarter expenditure projections.
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Specific purpose allocations to provinces: Schedule 5 Grants
Out of approximately nineteen grants in this category, only three grants received additional allocations – Comprehensive HIV and Aids Grant, Human Settlements Development Grant, and Devolution of Property Rate Funds Grant.
The purpose of the Comprehensive HIV and Aids Grant is to enable the health sector to develop an effective response to HIV and Aids, to support the implementation of the National Operational Plan for Comprehensive HIV and Aids treatment and care, and to subsidise in-part funding for the antiretroviral treatment programme. This Grant was allocated R6.0 billion for the baseline, during the adjustment the grant received an additional amount of R40 million.
The purpose of the Human Settlements Development Grant is to provide funding for the creation of sustainable human settlements. Although, in total, this Grant received additional allocations of R15 000 million only Gauteng received an increase from R3.7 billion to R3.8 billion while North West had its allocations reduced from R1.2 billion to R1.1 billion. There were no changes in allocations to other provinces.
The purpose of the Devolution of Property Rate Fund Grant is to facilitate the transfer of property rates expenditure responsibility to provinces, and to enable provincial accounting officers to be fully accountable for their expenditure and payment of provincial property rates. The grant received an increase from R1.0 billion to R1.8 billion. The Public Work report shows that 49 per cent of the allocation was spent as at the 30 August 2010 in this regard. This grant could be the main source of revenue generation for municipalities and can also reduce the current debt by government departments to municipalities. While the Committee welcomes the increase in this grant, there is a need for the relevant Committees and other stakeholders to ensure that there are systems and plans in place that will enable provinces to spend the additional allocations efficiently and economically. This will assist the government to be able achieve value for money in such expenditure and required outcomes.
- Schedule 6 Grants: Specific purpose allocations to municipalities
Two grants in this category received additional allocations and they are the Water Services Operating Subsidy Grant and Municipal Drought Relief Grant.
The purpose of the Water Services Operating Subsidy Grant is to subsidise water schemes owned and/or operated by the Department of Water Affairs or by other agencies on behalf of the Department. An amount of rollovers, R10 billion is added in the water services operating subsidy grants, where R8.4 million is added to the Schedule 6 Grant and R1.3 million is added to the Schedule 7 Grant: Grants-in-kind.
However, it will be important to provide a detailed explanation for allocations to specific projects to the Committee so that the expenditure of these additional funds can be effectively monitored.
The purpose of the Municipal Drought Relief Grant is to provide capital finance for basic water supply in municipal infrastructure for affected households, micro enterprises and social institutions. The grant received an additional allocation of R92 million which is specifically allocated to the Mossel Bay Municipality for drought relief.
- Conclusion
In conclusion, the Standing Committee on Appropriations will monitor the utilisation of these additional grant allocations through the in-year monitoring process which forms part of Parliamentary oversight. This will enable the Committee to be able to check whether financial legislations such as Division of Revenue Act (DoRA), Public Finance Management Act (PFMA) and Municipal Finance Management Act (MFMA) are adhered to by the spheres of government. The Committee will also monitor the efficiency of administration in compiling and spending various schedules so that schedules are not incorrectly recorded, classified or misplaced in the process. This will assist the Committee to identify challenges and, enhance the level of accuracy and compliance in all levels of government through making relevant recommendations during the in-year monitoring process.
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Sources The following source documents were used by the Committee when considering the Division of Revenue Amendment Bill: • National Treasury (2010). Division of Revenue Bill [B4 – 2010] • National Treasury (2010). Division of Revenue Amendment Bill [B35 – 2010] • National Treasury (2010). Press Release. Provincial Budgets: 2010/11 Financial Year. First Quarter Provincial Budgets and Expenditure Report. 11 August 2010
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Recommendation The Standing Committee on Appropriations, having considered the Division of Revenue Amendment Bill [B 35 – 2010] (National Assembly – proposed sec 76), recommends to the House that it be adopted (without amendments).
Report to be considered.
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Budgetary Review and Recommendation Report of the Portfolio Committee on Science and Technology, dated 3 November 2010
The Portfolio Committee on Science and Technology (the Committee), having assessed the performance of the Department of Science and Technology (the Department), reports as follows:
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Introduction
The purpose of the report is to provide an analysis of the performance of the Department of Science and Technology against predetermined objectives. The report attempts to provide an assessment of the financial performance of the department and entities for the financial year 2009/10. In the final analysis, the report provides for observations, conclusions and recommendations from the Portfolio Committee on Science and Technology.
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Mandate of the Committee, including provision of Section 5 of the Money Bills Amendment Procedure and Related Matters Act, No 9 of 2009
The Committee oversees the activities of the Department of Science and Technology as well as the entities reporting to it. A key element of its oversight function includes scrutinizing the annual reports and expenditure of the Department and its entities.
The recently promulgated Money Bills Procedures and Related Matters Amendment Act, provides for Parliament to make recommendations to the Minister of Finance to amend the budget of a national department. The Committee must submit an annual Budgetary Review and Recommendation Report (BRRR) for the Department, which may contain recommendations relating to funding allocations. This annual review and analyses of performance includes both financial and non-financial indicators.
The Portfolio Committee on Science and Technology considered the Budget of the Department of Science and Technology on 14 April 2010. The Committee considered the Department’s Annual Report 2009/10 on 13 October 2010. Engagements with entities such as the National Research Foundation (NRF), Council for Scientific and Industrial Research (CSIR), Human Sciences Research Council (HSRC), National Advisory Council on Innovation (NACI), Africa Institute of South Africa (AISA), Academy of Science of South Africa (ASSAF) and Tshumisano Trust also took place during the period of review.
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Department’s Strategic Priorities and Measurable Objectives
The aim of the Department of Science and Technology (DST or the Department) is to realise the full potential of science and technology in social and economic development, through the development of human resources, research and innovation. The principal goals of the Department are to develop the innovation capacity of the science system and contribute to socio-economic development, develop appropriate human capital for research, development and innovation (RDI), build excellent RDI infrastructure, position South Africa as a strategic international RDI partner and develop South Africa’s knowledge-generation capacity. The DST has a number of key deliverables under each of these goals. These include the development of strong innovation chains in biotechnology, nanotechnology, the hydrogen economy, space science, information technology and manufacturing. Additional deliverables include the development of technologies to address poverty and the poor quality of life of so many South Africans and the development of a healthy and diverse flux of young people seeking and finding careers in science and engineering. Finally, the Department hopes to accomplish notable successes in turning trends in global science to the national advantage, for example in astronomy and space science.
The 2009 – 2014 Medium Term Strategic Framework (MTSF) seeks to build on the current strategies and programmes already supporting innovation and research and development in the private and public sectors. The MTSF identifies technology innovation as one of the critical policy areas required to speed up growth and transform the economy to create decent work and sustainable livelihoods. During the current reporting period, the MTSF, the 2002 National Research and Development Strategy (NRDS) and the 2007 Ten- Year Innovation Plan (TYIP) guided and informed the strategic priorities of the Department of Science and Technology. Furthermore, the 2007 National Industrial Policy Framework assisted the Department in identifying research, development and innovation activities that were needed to grow and increase the competitiveness of strategic economic sectors. In this context, the continued implementation of the TYIP is crucial. The objective of keeping South Africa on par with global technology trends will be realised by further developing and/or implementing the following actions:
• Operationalising the Technology Innovation Agency (TIA), the National Space Agency and the National Intellectual Property Management Office (NIPMO). These agencies represent the institutional arrangements that will help foster the funding and support partnerships that are required for the development of cutting-edge science and technology capabilities in the country. They are also the primary drivers to create an innovation-enabling environment.
• Establishing the Centres of Competence (CoCs) and Technology Platforms in the titanium, downstream flourochemicals, battery technology, alternative energy, information security, bio-composites and medical devices sectors. These CoCs aim to build a competitive South African technology base.
• Developing and implementing the commercialisation strategy for South Africa’s electric vehicle industry.
• Continuing with the investment to ensure South Africa wins the Square Kilometre Array (SKA) bid and builds the Karoo Array Telescope, which will serve as a demonstration of South Africa’s skills and design capabilities in radio astronomy.
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Analysis of Expenditure The Department’s total expenditure was R4.18 billion (98.2 per cent) of the final appropriation of R4.26 billion. This equates to a R77.8 million or 1.8 per cent (under-spent R18.2 million in 2008/09) under-spending of the Department’s 2009/10 budget appropriation. Transfer payments, including the transfer of parliamentary grants to the public entities, accounted for R3.89 billion (93 per cent), while administration expenditure; which comprised goods and services, expenditure on assets (current and capital) and compensation of employees; accounted for R293 million (6.87 per cent) of the total appropriation.
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Overview of the Department’s Annual Report All five of the Department’s Programmes under-spent on their respective allocations, namely, Programmes 1 (Administration), Programme 3 (International Resources and Co-operation) and Programme 5 (Socio-Economic Partnerships) under-spent by R20.5 million, R14.9 million and R27.5 million, respectively. The Department’s Accounting Officer states that the under-spending did not affect performance and service delivery and that the factors contributing to the under-spending of the allocation included goods delivered but not paid for, delays in finalising the roll-out of an information management system and the project to establish the secretariat function for the Regional Initiative for Capacity Development (RICAD). In addition, staff turnover and the slow uptake of transfers by implementing agencies were also factors that contributed to the under- spending of the allocation. Virements amounted to R16.7 million (0.4 per cent of the total appropriation) and were approved by National Treasury and the Accounting Officer. Of the R16.7 million, R11.7 million was moved between programmes and R5 million was moved within programmes. The Department has an overall vacancy rate of 12.3 per cent, with the Skilled and Senior Management salary bands constituting 65.5 per cent and 20.7 per cent, respectively, of the overall vacancy rate. During the reporting period, Internal Audit Services performed audits on the RICAD and the Solar distillers and geysers for sustainable environment (Northern Cape) projects. The results of these audits were:
• RICAD - During September 2009, the Department cancelled its contract with Brentlana for the management of the RICAD project as a result of Brentlana’s alleged failure to perform. The Department also claimed a refund of all monies (amounting to R2.3 million) already paid to Brentlana under the contract. Brentlana disputed the cancellation of the contract and referred the matter to arbitration. The arbitration proceedings commenced, but has not been finalised and, therefore, a contingent liability cannot yet be determined.
• Solar distillers and geysers for sustainable environment (Northern Cape) - The project to provide solar distillers and geysers for sustainable environment in the Northern Cape was terminated. Solar geysers were installed, but the manufacturing and uptake of the project did not prove sustainable. The Department’s Management terminated the project with legal action to recoup funds. The implementing agency, Nawasan, refunded the Department R289 590, which was the balance of (unspent) funds and the project was closed.
The public entities that were funded through the DST’s vote in 2009/10 are the Human Sciences Research Council (R166.2 million), the National Research Foundation (R692.1 million), the Africa Institute of South Africa (R29.3 million), the Council for Science and Industrial Research (R599.4 million), the Tshumisano Trust (R36.4 million) and the Academy of Science of South Africa (R4.6 million).
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Findings of the Auditor-General The Auditor General (AG) gave the Department an unqualified audit opinion for the 2009/10 financial year since the financial statements presented fairly, in all material aspects, the financial position of the Department as at 31 March 2010. However, the AG states that the Department had not reported completely on all its predetermined objectives, indicators and targets. The AG found that the actual achievement regarding 56 per cent of the Department’s planned activities for the 2009/10 financial year were not fully reported in their current annual performance report. Furthermore, with reference to the Department’s financial and performance management, the AG states that the Department’s manual controls are not designed to ensure that all transactions and performance information are completely recorded and accurately classified.
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Programme Performance
The key operational activities of the Department continue to be carried out by five main Programmes. The five Programmes are:
6.1 Programme 1: Corporate Services and Governance (now named Administration)
The Administration Programme, consisting of six sub-programmes, is responsible for the overall management of the Department, and ensures that the organisations funded, comply with good corporate governance practices, and align their activities with the national system of innovation (NSI). It is also responsible for monitoring and evaluating the performance of the science councils. This programme received R179.6 million of the total appropriation and under-spent by R20.5 million. Here, approximately R5 million saved on the compensation of employees (vacancies / staff turnover) was used to augment goods and services to fund IT-related expenditure.
6.2 Programme 2: Research, Development and Innovation
The Research, Development and Innovation Programme, consisting of four sub- programmes, provide policy leadership in long term and cross cutting research and innovation in the NSI. This programme received R1.1 billion of the total appropriation and under-spent by R7.2 million. Some of the outputs reported for this programme in the 2009/10 Annual Report are:
• The launch of SumbandilaSAT. • The completion of the seven-dish Karoo Array Telescope (KAT-7), the precursor for the MeerKAT precursor array. • The development of the Hydrogen and Fuel Cell Technologies Research, Development and Innovation Strategy (HySA) objectives, namely the HySA Catalysis and HySA Systems centres of competence. • The design and building of a hydrogen-powered bicycle. • The launch of the South African HIV and Aids Research and Innovation Platform (SHARP) in July 2009. SHARP will serve as a centre that provides strategic leadership to enhance, consolidate and direct basic and applied research related to HIV prevention and treatment in South Africa. • The appointment of the Technology Innovation Agency (TIA) Board of Directors and the incorporation of existing innovation instruments into this Agency. • The regulations under the Intellectual Property Rights from Publicly Financed Research and Development Act, 2008, were signed in December 2009.
6.3 Programme 3: International Co-operation and Resources
The International Co-operation and Resources Programme, consisting of three sub-programmes, aims to develop and service bilateral and multilateral relationships and agreements in science and technology. This programme received R131.9 million of the total appropriation and under-spent by R14.9 million. Some of the outputs reported for this programme in the 2009/10 Annual Report are: • During South Africa’s SADC leadership in 2009 − South Africa was mandated to lead in the four regional projects. These are the science, technology and innovation (STI) policy management training and capacity building project, the SADC Women in Science, Engineering and Technology (SET) programme (in consultation with member states), hosting a workshop on intellectual property rights and developing modalities for the implementation and launch of the 2009 SADC SET Week. • The 2009/10 financial year also saw the long-awaited implementation of the Africa, Caribbean and Pacific (ACP) S&T Programme, jointly funded through the European Development Fund and the European Union (EU) Development Co-operation Instrument for South Africa. • The 2009/10 financial year was another good year for South Africa’s S&T co-operation with the EU. Building on the success of existing partnerships, such as South Africa’s impressive participation in the EU’s Seventh Framework Programme for Research and Technological Development (FP7), several new co-operation initiatives were launched. • Various joint research projects were completed in 2009/10, including those within the India-Brazil-South Africa (IBSA) framework in areas such as nanotechnology, biotechnology and polar and oceanographic research. • The DST successfully leveraged R178 million in official development assistance funding from partners like Canada, the EU, Finland, Germany, Japan and the United States of America, with a further R11 million leveraged for human capital development (HCD) initiatives from partners including Australia, Canada, France, Germany and Japan.
6.4 Programme 4: Human Capital and Knowledge Systems
The Human Capital and Knowledge Systems Programme, consisting of three sub- programmes, aims to develop and implement national programmes to produce knowledge and develop human capital and the associated infrastructure, equipment and public research services. This programme received R1.6 billion of the total appropriation and under-spent by R7.6 million. Some of the outputs reported for this programme in the 2009/10 Annual Report are: • The National Science Week attracted 204 950 participants, exceeding the target of 200 000. • South Africa, through the South African Mathematics Foundation, hosted the Pan African Mathematics Olympiad in April 2009. This DST-funded event saw a record number of 12 countries entering and participating. South Africa was the second overall winner. • The Department placed 320 unemployed SET graduates in SET-related institutions. • In the 2009/10 financial year, the DST’s comprehensive bursary scheme supported 287 students at honours or honours equivalent level (87 per cent black, 23 per cent white, 58 per cent female and 42 per cent male). At masters level, a total of 140 new and continuing students (74 per cent black and 55 per cent female) were supported. • The South African Research Chairs Initiative (SARChI) increased from 72 to 82. The number of students and postdoctoral fellows supported under the research chair grants grew from 392 in 2007 to 514 in 2009. • On 11 November 2009, under the DST-funded African Origins Platform, researchers at the University of the Witwatersrand’s Bernard Price Institute of Palaeontology announced the discovery of a new species of dinosaur. Scientists also described and named a new species of hominid, Australopithecus sediba, almost two million years old, which was discovered in the Cradle of Humankind World Heritage Site in 2008. • The 2009/10 financial year saw the finalisation and approval of the Nanotechnology Public Engagement Plan, the implementation of which commenced during the reporting year. The Nanotechnology Research Plan, which focuses on nanotechnology research in the country for the delivery of strategic goals, was also finalised and distributed nationally at workshops. • The National Photonics Strategy was approved in the reporting year, paving the way for the commencement of the development of this area of science in 2010/11. • The third SADC workshop on Indigenous Knowledge Systems (IKS) policy development and regional cooperation was hosted from 22 to 24 June 2009 in the Republic of Seychelles. The primary aim of the third workshop was the development of a Plan of Action (2009-2010) for the establishment of a regional framework for the protection of IKS. • The DST, in partnership with the Office of the Premier of Limpopo, hosted the 2009 IKS Expo from 3 to 6 November 2009 in Polokwane.
6.5 Programme 5: Socio-Economic Partnerships
The Socioeconomics Partnerships Programme, consisting of three sub- programmes, aims to serve as a strategic partner within government and with industry, contributing to South Africa’s transition to a knowledge economy. This programme received R1.2 billion of the total appropriation and under- spent by R27.5 million. Some of the outputs reported for this programme in the 2009/10 Annual Report are:
• The funding support for a multi-purpose fluorination plant was finalised. • The formalisation of the titanium centre of competence is in progress; to date 60 students have been involved in this programme. • The DST is contributing to Government’s Competitive Supplier Development programme. Twenty-eight companies were selected to receive technology assistance packages from the Department. • Programme 5 is currently piloting the Community-University Partnership Programme (CUPP) at four rurally based universities (i.e. the Universities of Fort Hare, Limpopo, Zululand and Venda) over a period of three years (2009/10 to 2011/12). CUPP is a key outcome of the Human and Social Dynamics Grand Challenge and seeks to act as a catalyst for solving problems, facilitating development, sharing lessons, generating knowledge and adopting new techniques and innovations. Universities based in poor and underdeveloped rural and urban communities can play a pivotal role in helping residents to contribute information to decision- making, as well as contributing to a better understanding of the issues, choices and concerns in the community. • The DST supports a number of technology transfer initiatives to address the challenges of poverty reduction from the perspective of using science and technology for creating sustainable livelihoods. The initiatives are organised under three thrust areas, i.e. demonstration agronomy science (including bioprospecting in essential oils and scientifically proven indigenous medicinal plants), aquaculture and the diversified post-harvest beneficiation of natural resources.
- Committee’s Observations
The Committee found it difficult to work within the limited time available between receipt of the reports and engaging with the entities. This was aggravated this year by the fact that most reports were tabled during the September recess. This put extreme pressure on the members who had limited time to read and analyse the reports before the entities appeared before them.
In undertaking oversight of the programmes and projects of the Department, the Committee noted the strengths and weaknesses of the work during the 2009/10 financial year.
Although the Department attained an unqualified report, the Committee expressed reservations on the incompleteness of reporting on more than half of their targets/activities.
This further reflected in the change of format of the annual report for the year under review. Members found it difficult to monitor and compare outcomes to targets attained from the strategic plan to the annual report.
The Committee found it difficult to proffer comprehensive insights on the performance of the Department due to the limitations posed by the presented information in the annual report.
Furthermore, the lack of information within source documents compounded the matter and confused members about whether underreporting could be attributed to the Department being under resourced, weaknesses in reporting systems or lack of skilled staff in capturing performance information accurately.
The Committee noted that high-level posts within the Department have been vacant for an extended period. The Committee also noted from the AG’s findings that an updated and approved HR plan for the 2009/10 medium-term expenditure framework period was lacking.
The Committee observed that the targets set for PhD production, the South African Research Chairs Initiative and the percentage of Gross Domestic Product expenditure on research & development (R&D), as encapsulated in the 10-year Innovation Plan, are unlikely to be met. In light of the above, the Committee questioned whether these targets needed to be reviewed.
The Committee had raised its concern with the Department about the feasibility of the Department’s request for entities to cut their budgets, given the enormity of the mandate of entities such as the NRF and CSIR.
The Committee noted the important role that agencies such as the Technology Innovation Agency (TIA), South African National Space Agency (SANSA) and the National Intellectual Property Management Office (NIPMO) have to play in facilitating the development of cutting-edge science and technology capabilities in the country. The Committee therefore urged the Department to support these agencies to become fully operational and advance their mandates to the fullest extent. The Committee expressed its concern about the lengthy period of time it took to establish TIA.
The Committee commented on some general areas where it foresaw that DST could to make a more meaningful input and impact:
Members encouraged the Department to play a much more visible role in the country’s Climate Change agenda, this in the light that South Africa would host the COP17 Conference in 2011. Related to this is a continued advisory role that the Department should play towards South Africa’s commitment of a 40% emission reduction versus Eskom’s Build Programme, which includes building fossil fuel based power stations.
The Committee recognizes that science and technology is a cross-cutting discipline and therefore encourages that the Department strengthens its interaction with its national departmental counterparts. Specific references were made to Education, Health, Environment, Energy and Agriculture.
With regard to the Department of Energy, the Department should strengthen its role and support in the advancement of renewable forms of energy. Based on oversight activities embarked upon, the Committee’s view is that much of the research done in the area of renewable energy technologies seems uncoordinated, limited and could do with more funds.
Members are keen to see the Department, with its counterpart, the Department of Trade and Industry clarify their respective roles in the forthcoming International Astronautical Congress, which South Africa will host in 2011.
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Recommendations
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The Committee recommends that the Department make concerted efforts to correct the shortcomings of incomplete reporting as highlighted by the Auditor-General.
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The Committee advises that the Department reverts to the previous format of reporting, in tabular form, illustrating clear targets and achievements and ensures that the annual report is aligned with the Corporate Strategy.
- The Committee recommends that the Department ensures that systems and proper resources are in place to facilitate that there is a complete report on the achievement of targets as set out in its strategic plan.
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The Department should strengthen its oversight function over the Africa Institute of South Africa (AISA) to ensure that reporting of information by this entity is consistent and that their financial operations are within the confines of Treasury Regulations and the PFMA. AISA’s role within the science system also needed to be clarified.
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The Department should brief the Committee on its vacant posts and their overall HR plans. Vacancies should be filled within a reasonable amount of time and that the Committee is updated about the challenges experienced in filling the posts.
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The Committee recommends that a workshop be held with the Department, inclusive of all relevant stakeholders, on the PhD programme and on percentage of GDP expenditure on R&D to discuss the challenges and to work towards formulating a way forward.
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The Department should brief the Committee on the roles and mandates of the Space Council, SA National Space Agency and explain how this links to the Space Agency legislation and fits into the Science and Technology fold.
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The Committee recommends that the Department keep it informed of the programmes and activities of the Department. This would improve communication and facilitate alignment of the Committee programme with some of the key activities of the Department and its entities.
- Conclusion
The Annual Report, as well as briefings by the Department and its entities show that the Department is progressing in the implementation of its priority areas. The Committee is confident that the Department is able to correct the challenges experienced in its final reporting of performance targets.
The Committee took cognisance of the fact that DST is not a service delivery department.
The Department pointed out its area of delivery shortfalls and attributed this to a range of reasons, some of which comprised inadequate financial resources, inherent delays of the legislative process and the framing of multi-year activities as a single performance event and/or output. The Committee, however is still of the view that the identified shortfalls can be corrected. The Committee, having assessed the work of the Department through the annual report as well as expenditure patterns through the mid-term review, commended it for attaining an unqualified audit opinion in the 2009/10 financial year, and for spending 98% of its budget.
Report to be considered.