FRIDAY, 19 NOVEMBER 2010 __

          PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
                                ____

The Council met at the Charles Mopeli Stadium in the Maluti-A-Phofung Local Municipality at 10:25.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

MODULASETULO WA NCOP: Tšielala! Tšielala! Maloko ao a hlomphegago, a re homoleng mošomo wa rena o a thoma bjalo! A re homoleng! Re tla ba le nakonyana ya setu ya thapelo le go ikgopola. Dulang fase ka kgopelo. Ke kgopela gore le homole, lehono ke tulo ya Ntlo ya NCOP. Ga re dumelele batho gore ba bake lešata. Ge le ka baka lešata re tla kgopela maphodisa ba le ntšhe le tšwele ka ntle. Ke kgopela gore le theetše, go tla ba le dipoledišano, Mopresidente wa naga o tlo bolela le rena le Ntlo ya NCOP le Maloko a Palamente ba tla bolela. Sa mathomo a ke tšeye sebaka se ke kgopele tshwarelo go setšhaba sa Phuthaditjhaba le Qwaqwa ka moka le Freistata ka moka, le Maloko ao Hlomphegilego a Palamente gore re thome lenaneo la rena ka morago ga nako. Ke ka lebaka la gore dipula di ana lefase le kamoka, hlogo ya naga ye Mopresidente wa rena Mohlomphegi Zuma ga se a kgona go tloga ka nako ka lebaka la boso. Ke ka lebaka leo re šilwego ke nako ya go thoma ka mošomo wa rena. Fela kre tla fetša ke kgopela gore le iketle le seke la kitima ka lebelo. (Translation of Sepedi paragraphs follows.)

[The CHAIRPERSON OF THE NCOP: Order! Order! Hon members, let us keep quiet because we are now starting with our programme! Let us observe a moment of silence for prayers or meditation. You may all take your seats. People are not allowed to make a noise during the NCOP sitting. Should anyone make a noise, we are going to ask the security people to take that person out. Please listen attentively as the President of the country is going to deliver his annual address to the sitting of the NCOP. The Members of Parliament are also going to debate.

I would first like to apologise to the hon Members of Parliament, the people from Phuthaditjhaba, Qwaqwa and the Free State province as a whole for not starting with our programme on time. The President of the country could not leave in time due to the unfavourable weather conditions. It is raining all over the world. Even though we are starting late with our programme, I urge you to take your time and not rush.]

Hon members, I would now like to take this opportunity to welcome the President of the Republic of South Africa to the sitting of the National Council of Provinces, and call upon the President to deliver his annual address. [Applause.]

A re tšeeng madulo a rena, re homole gomme re theeletše Mopresidente wa naga. [Let us all take our seats and listen to the President of the country.]

ALL SPHERES OF GOVERNMENT WORKING TOGETHER TO SPEED UP THE DELIVERY OF SERVICES

                        (President’s Address)

The PRESIDENT OF THE REPUBLIC: Hon Chairperson of the NCOP, Mr Mahlangu; hon Premier of the Free State, Mr Ace Magashule, and other premiers who are present here from other provinces; hon Speaker and members of the provincial executive; executive mayor of the Thabo Mofutsanyana District Municipality, Councillor Mopeli; mayor of Maluti-A-Phofung Local Municipality, Dr B E Mzangwa; provincial chairperson of Salga, hon Councillor Mr J Ramokhoase; hon Adv M Mopeli, Chairperson of the Provincial House of Traditional Leaders, and esteemed traditional leaders among us here today, esteemed councillors, distinguished invited guests, ladies and gentlemen, dumelang, molweni!

Let me begin by expressing my gratitude to the people of Maluti-A-Phofung Local Municipality, Thabo Mofutsanyana District Municipality and the people of the Free State province, as a whole, for the warm welcome you have extended to us. I am particularly pleased that the National Council of Provinces has decided to hold this important meeting in this region.

We are standing in the shadows of the majestic Maluti mountains. In this region is some of the most beautiful natural scenery in the whole of South Africa. Bushman paintings on some of the rocks here bear testimony to the creativity and ingenuity of our people. The Free State province is also known for more than the beauty of its valleys and the majesty of its mountains. This province has witnessed some of the major events in the history of our nation.

Almost a hundred years ago, a few dozen black South Africans from all corners of this land, and beyond, answered the call of freedom and came to this province to reaffirm a simple principle: that this country belongs to all who live in it. Therefore, whenever I come here, I am always reminded of the historical fact that Africa’s oldest liberation movement, the ANC, was born here. [Applause.]

This birthplace of our movement, a movement that was established by all the people of this country, also reminds us of our continuing responsibility to improve the lives of our people, a task which this historic movement was established to achieve. Like the parable of the mustard seed told by Jesus Christ, the seed of freedom planted in Bloemfontein in January 1912 has grown into the biggest tree of freedom that we all enjoy today, regardless of political affiliation, colour or creed.

The National Council of Provinces has called us here today to reaffirm another fundamental principle that lies at the heart of our democratic republic. That principle is that institutions of governance and authority should derive their legitimacy from the will of the people. The essence of this principle is reflected in the wisdom of our people when they say, “Inkosi Inkosi ngabantu”, and “Morena ke Morena ka batho” [A king is king because of people].

This programme of Taking Parliament to the People is a living example of public representatives who know that their power comes from the people. That means that they should be in constant touch with the people, visit them where they live, and interact with them, so that they can know what their concerns and aspirations are. Interaction with the people will enable public representatives to better understand and better conduct oversight over government as it carries out its duties.

We are pleased to visit this region during this phase of the administration, when we have completed the planning and reconfiguration, and have shaped government in a manner that we think can make it best deliver services. In the past year and a half, we have taken important steps in changing the way government works. Initially, at the beginning of this administration, we reorganised government departments in order to facilitate the speedy delivery of services to the people. We created some new departments and split up others to enable them to focus on the priorities of government.

I have completed the process of signing performance agreements with Ministers, who, in turn, have signed delivery agreements with their counterparts in the provinces and municipalities. The reason we have taken this approach is to ensure that everybody, from the highest levels of government to the lowest, should be accountable for the work they are responsible for.

Last month, we made changes to the national executive. We created four new Deputy Ministries in portfolios that we felt needed more pronounced attention, such as Higher Education and Training, Energy, Mineral Resources, and Monitoring and Evaluation. Having completed the technical reshaping of government, we now have to emphasise service delivery and also the manner in which those services are delivered.

We have said government should work with speed to address the needs of the people. We have said that government officials should treat citizens with respect. We have said it should not take a long time to get an ID document when you apply for it. Changing the way government works also means that public servants should not abuse the power that has been entrusted to them. A grandmother should not have to bribe a government official in order to get her old age pension. A young man who wants to get a driving licence should not have to pay somebody in order to get a driving licence.

Those who are employed and get paid to do a job must do it. Teachers must be in class, on time, teaching for seven hours a day. Police officers should respond with speed when citizens call for them. Nurses should treat patients with the compassion that our common decency and humanity demand should be extended to the sick and the vulnerable. These are simple values that we are seeking to entrench in government. Fortunately, some government departments are responding speedily to this new ethos. However, many still lag behind, making the experience of government not a pleasant one for most people.

Some people’s experience of government is that of an institution far removed from them. They think government officials do not care about their concerns. They think government takes far too long to solve simple problems. They think government officials spend public resources on things they should not spend them on. This is how some people look at us, as government. What an unfortunate situation!

We have to change these perceptions through changing the way we work as government. That is why I have ongoing discussions with directors-general in the Public Service, nationally and provincially, so that they can ensure that they build the type of Public Service we envisage.

Most of the problems that confront our people exist at a local level. The challenges that exist in this region mirror those experienced in many different parts of the country. As we are all aware, the Thabo Mofutsanyana District Municipality is under a section 139 intervention. This means that provincial and national government departments are making interventions to alleviate the grave challenges faced by the people here. Maluti-A-Phofung was also chosen as one of the presidential nodal points because of the scale of the challenges and backlogs prevailing here, particularly with regard to unemployment and poor service delivery.

On this note, I commend the provincial leadership for the interventions made through the premier’s Operation Hlasela programme, which gave momentum to various projects. [Applause.] We acknowledge the work of the local municipality here for developments which the mayor indicated this week, particularly regarding basic services such as potable water, sanitation, houses, access roads, clinics and sporting facilities. I also understand that a significant number of jobs were created through the Expanded Public Works Programme and the incentive grant, but these are not enough. I learnt, among other things, that some agricultural projects related to the Integrated Sustainable Rural Development Programme, ISRDP, here have faltered. These must receive attention and be revived. In the same manner, the considerable backlogs regarding human settlements in Maluti-A-Phofung should also receive attention. I would like to emphasise that all deserving people should receive these houses, particularly our senior citizens.

Everybody who qualifies should get a house when these become available, not only ANC members, as some residents have alleged. [Applause.] There has been an allegation that these houses are received by ANC members only, which is why I am emphasising the point. Government is for the citizens of this country – all of them. We all know that we should not go against the grain of our Constitution. It is not how government works.

Social facilities and amenities which are not working should be made fully functional. The challenges encountered in the schools regarding nutrition, water and clean facilities, among others, should also be addressed. So should the necessary infrastructure, such as roads and bridges, which enable children to have access to schools, even during rainy weather.

Primary health care should be provided with all the infrastructure and communication. These include vehicles for mobile services, telephones, and the proper supply of medication and relevant health personnel.

That Member of Parliament is complaining! [Laughter.] [Applause.] Please attend to the member! But it also indicates that this is the Parliament of the people.

HON MEMBERS: Yes!

The PRESIDENT OF THE REPUBLIC: Absolutely. [Applause.]

As critical facilities, health centres should also enjoy a reliable supply of electricity. Waste management services should also be improved. I am just counting what should be standard services in any municipality, the standards we should aspire to for our people throughout the country.

It is clear that while a lot of work has been done by the province and municipalities, much more still needs to be done in this area, hence our theme, “All spheres of government working together to speed up the delivery of services”.

Concern was raised this week about the poor relationship between the communities and some of the councillors in this area. [Applause.] I must hasten to add that we need to be careful about blaming all councillors for any wrong that is done by just a few. The majority of councillors and officials around the country work diligently. Where this is lacking, let the provincial authorities address the matter to improve service delivery.

And I want to stress this point: There is a tendency to generalise about the corruption of councillors. [Applause.] I think it is unfair to the many councillors who are working, who are honest, and who are serving the people, if we tend towards making generalised statements. Let us deal with the councillors who are corrupt, and not generalise. Let us be very specific, so that we can address the question. [Applause.] A perception is being created that once you are in government, you are just corrupt. It is wrong and it is unfair.

The scale of some challenges experienced here is local, provincial and also national, which means that intervention should be collective and should cut across those three spheres. It has been raised that there is no proper collaboration of the three spheres of government in some of the projects implemented in this area. This must be attended to. We cannot underestimate the need for collaboration amongst the three spheres of government. I emphasise that point whenever I meet the premiers in the President’s Co- ordinating Council every quarter.

We are one country; we are not a federal country. [Applause.] All the arrangements that have been made have been made for easy administration. You see, that is part of the problem: People fight about boundaries as if they are the borders of a country, when we are in one country. And indeed, the way people act it is as if we are in different countries. When an ambulance is close by, because it belongs to another province, it cannot take a patient. It is a misunderstanding of how these things are arranged and for what reason. They are not different countries. We will end up asking for a passport if some people drive into a province – it is really ridiculous. We are sitting with border disputes. I do not know what border it is, in one country. We, as politicians, might have created this misconception.

We are scheduled to meet again on 26 November as the PCC, the Provincial Co- ordinating Council. You know, these acronyms are, at times, a problem to us …

… kithina bantu la eMzansi. Umuntu akuxoxele indaba ngamagama afingqiwe [acronyms]. [… the people of South Africa. A person will tell you a story in parables.]

PCC means Provincial Co-ordinating Council.

The NCOP represents the voice and interests of our people in the provinces at the highest levels of our democratic republic. The fact that it also sits outside of Parliament in Cape Town is a very important and unique development. Most of the issues that have come out this week have enabled members of the National Council of Provinces to obtain a first-hand account of the challenges in this area and region. When you discuss legislation relating to how poverty affects our people, you will do so informed by the conditions on the ground. The lessons that we have learned here should be instructive for other areas, both here in the Free State and in other parts of the country.

Therefore, as we meet here in the Free State today, we should make sure that the National Council of Provinces’ programme of Taking Parliament to the People continues to form a critical part of what it means to be an elected representative. It should not just be seen as a deviation from your normal schedule as MPs, as this is a valuable interaction that helps our Members of Parliament to keep in touch with the people they represent.

We truly appreciate being here with you, as we will be able to experience whether we are truly changing the way government works. We thank you for your kind attention.

Siyabonga kakhulu ukusamukela kwena kule ndawo. [Thank you very much for welcoming us to this place.]

Re leboha haholo hore le re amohele kajeno baheso. [Thank you very much for welcoming us today.]

Thank you, Chairperson. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Our Excellency has given us words of wisdom.

Usikhuthazile ukuthi masivuselele isithembiso esasenza uma sithunywa ukuthi sizosebenzela isizwe. [He encouraged us to revive the promises we made when we were asked to serve the nation.]

Thank you very much, our President.

The CHAIRPERSON OF THE NCOP: Hon Deputy Chairperson of the NCOP, His Excellency the President of the Republic, hon Jacob Zuma, all the premiers present here today, hon speakers who are present here today, hon Councillor Ramokhoase who is the Deputy President of the SA Local Government Association, Salga, hon members of provincial legislatures and hon Members of Parliament, traditional leaders, citizens of the Free State and other provinces who have visited here today, I greet you all.

Ke rata go tšea sebaka se mohlomphegi modulasetulo, ke leboge Mopresidente wa naga ge a iphile sebaka se gore a tle a bolele le rena mo Ntlo ng ye ya go hlomphega ya National Council of Provinces. Tla re mo tieleng matsogo go tšeye gabotse!! Ye taba e re laetša gore ke Mopresidente wa batho. Ye taba e re laetša gore ke Mopresidente yo a ratago go re, re tsebe gore mmušo wa gagwe o šoma eng. Ka lebaka leo re leboga ge a šiile mešomo ye mentši go tla mo go thušana le rena.

Mopresidente o ile a bolela, ge a namela setulo se sa bo presidente, o tla lokiša dilo tše go swanetšwego go thongwe ka tšona tše mmalwa tše e lego gore mmušo o tlamegile go di dira. Nka se di bale ka moka, fela ke tšona tše re tlilego ka tšona fa lehono re tlo di lebelela gore a di a phethagala na. Sa mathomo, Mopresidente le khabinete ya gagwe ba ile ba bolela tšeo di latelago … (Translation of Sepedi paragraphs follows.)

[Hon Chairperson, I would like to thank the President of the Republic for spending time with us in the National Council of Provinces. Let us applaud him. This shows that he is the people’s President. He is the type of President who updates the people about what is taking place in the government. We appreciate the fact that he left his many other commitments to come and work with us.

The President indicated during his inauguration that he will make sure that the government starts working on a few things that need urgent attention. I cannot mention them but we are here today to check if those promises are being fulfilled. The President, together with his Cabinet, said …]

… there will be a speeding up of economic growth and transformation of the economy to create decent work and sustainable livelihoods; development and implementation of a comprehensive rural development strategy linked to land and agrarian reform and food security; improvement of the health profile of all South Africans; intensification of the fight against crime and corruption; and building of cohesive, caring and sustainable communities. The hosting of the Taking Parliament to the People programme in the Free State has helped us deal with some of these important aspects in relation to government priorities. These include the provision of electricity.

Mohlagase wo le wboletšego ka wona beke ka ka moka ge re be re le fa. Ke rata go leboga mmušo wa Free State, ke leboge le mebušo ka moka: wa mmasepala, wa selete le wa selegae ka gore ba šetše ba thomile. Fela tema le swanetše go e lema ka gore ga se la fetša metse ka moka go tsenya mohlagase. Batho ba kgopela seo. “[Legofsiswi.]” Kudu kudu mola go Wate ya 29, ba ile ba tsenealela taba ye kudu. Ke nyaka gore ge re tloga fa, re nape re yo thoma gona re lebelele go re mošomo o a thoma o a sepela. Kke a tseba gore le šetše le beakantše, kitimang ka lebelo gore kabo ya rena ya diterelo e tle e kgone go tšwela pele ka potlako.

Taba ye nngwe yeo e lego gore e ile ya bolelwa mo gare ga beke ge re dutše fa Mopresidente o šetše a e hlalo šitše, ke taba ya dintlo. Go na le bakgekolo le bakgalabje ba rena ba be ba eme mo ba lla ka megokgo ba kgopela gore hle a nke le re lebeleleng le rena re bana ba lena le le mmušo, le le Palamente. Ke a leboga moPrimiaraTonakgolo Ace Magashule. Ba ile ba emelela tonanakgolo le bašomi ka yena, ba eme mo pele ga rena ba re ba tlile go thoma ka lena gomme ba bannyane ba tla latela. Ke rata go ba leboga kudu ka gore ba kwele kgopelo ya lena. (Translation of Sepedi paragraphs follows.)

[We have spent the whole week debating the issue of electricity. I would like to thank the Free State Provincial Administration, the district and local municipalities, because they have already started with electricity projects. You still have a long way to go because you have to provide electricity to all the villages. People need electricity, especially in Ward 29. [Applause.] This ward needs urgent attention with regard to provision of electricity and we also have to go there for an oversight visit. I know that you have plans in place for this, so please ensure speedy service delivery.

We debated the issue of houses during the week and the President talked about it also. Old men and women were making an appeal here, asking for help from the government and Parliament. Thank you, Free State Premier, Ace Magashule. The premier together with his cabinet made it clear that they want to start by serving you first, then other people later. I appreciate the fact that they heard your request.]

And the premier has committed himself regarding that.

Ke la mathomo mola lenaneo le le thomago, ke bona Tonakgolo ya profenseProfentshe a dutše le rena mo go tloga Mošuopologo go fihla Labohlano a šoma le rena mo fase mo. Ke la mathomo! O be a šoma le rena ka mo ntlong ye a le theeditše gore le reng, ge re eya fase a sepela le rena mafelong a tekolo go yo bona gore go diragala eng kua mafelong ao. A re gonna a re: “Mahlangu sepela le wena o ye go bona gore go diragala eng”. Ke rata go mo leboga le Matona a gagwe ka moka. Le šomile gabotse. Se sengwe seo Moprimiara a se boletšego ke gore, go na le batho bao e lego gore ge ba filwe mošomo wa mmušo gore ba le agele dintlo, ba tšhela selepe goba ba age ntlo e be seripa, mola e le seripa ba tšhabe ka tšhelete ba kitimele go gongwe. Tonakgolo o tloga a ithaopile gore batho bao ba tlile go ngwalwa maina ka moka ba ka sehlwe ba hwetša mošomomo, o tlo ba tlo swarwa. Tona ya Tlhabollo ya Dinagamagae le Tshokollo ya Naga tša Selegae Morena Nkwinti o be a le mo go lena. (Translation of Sepedi paragraph follows.)

[This is the first time I have seen the premier of a province working with us here from Monday to Friday since we started with this programme. I have never seen it before. He listened to our debates and he even went on oversight visits with us. He said to me: “Mahlangu, you must also go and see what is happening out there.” I appreciate the work done by the premier and his cabinet. The premier indicated that there are contractors who got paid and ran away without completing the houses they were building. He further indicated that he will make sure that those contractors get blacklisted and they will also be arrested. The Minister of Rural Development and Land Reform, hon Nkwinti, was also present.]

Uye wakhuluma nani ukuthi, angeke kusenzeka ukuthi umbuso uninikeze indawo nihlale kuyo ningayisebenzisi, siswele ukudla. Into ezokwenzeka ukuthi labo abazonikezwa indawo yokulima emasimini bazoqashiselwa leyo ndawo basinike ukudla. Uma nihluleka ukusebenza emasimini umbuso uyanikhipha ufake abantu abafuna ukusebenza.

Lokho kuzokwenza ukuthi nikwazi ukunciphisa izikweletu zenu, nikwazi ukuqhubekela phambili nithole imisebenzi nakhele nabanye abantu imisebenzi.

Mongameli ngithanda ukubonga kakhulu ukuthi ukhulule oNgqongqoshe bakho beze kithi bazohlanganyela nathi. Nayi into emnandi ngoMkhandlu Kazwelonke Wezifundazwe, bonke abaholi beza lapha ukuziphendulela ebantwini. Namhlanje uMongameli unathi khona lapha. Nimzwile eziphendulela. ONgqongqoshe bethu bakhona namhlanje bazohlanganyela nathi ukuze banazise ukuthi benzani ezifundazweni.

Abesigungu sikaMongameli abaphumelele ukufika banitshelile ngazo zonke izinto ukuthi zisebenza njani embusweni. AmaKhansela neziMeya babemi lapha phambi kwethu. Amalungu ePhalamende emi lapha phambi kwethu. (Translation of isiZulu paragraphs follows.)

[When he spoke to you, he warned that you will not receive land on which to stay or to use since we experience food scarcity. What will happen is that farms will be let to those who will produce food for us in return. But when you fail to work the farms, the government will remove you from those farms and give them to others who are willing to work.

This will enable you to minimise your debts and continue finding jobs and creating jobs for others.

Hon President, I would like to thank you very much for releasing the Ministers to be with us. What is good about the NCOP is that all the leaders come here to account to the people. And today the President is also here amongst us. You heard him responding in person. Our Ministers are here today to be with us and to tell us about what they are doing in the provinces.

Those who are members of the President’s executive council have talked about how things are done in government. They were all standing here before us – councillors, mayors and Members of Parliament were standing here before us.]

There is no other House in the whole world that can do that except the National Council of Provinces. [Applause.]

Ezemfundo, ngaphambi kokuza lapha sisebenze izinyanga ezinhlanu senza amalungiselelo okuza lapha. [We were engaged in education for five months before we came here, and then we were kept busy preparing for coming here.]

I myself was here, together with the Deputy Chairperson, leading the teams that are working on the ground.

Umsebenzi omningi wenziwe ngaphambi kokuba sifike lapha. Uma ungadlula eMamello Primary School lapho safika sathola khona izindlu zangasese zingekho, kunuka futhi kuvuza, uMnyango weZemisebenzi yoMphakathi usuyasebenza kuleyo ndawo.

Nakwezinye izindawo esizivakashele ngoba sasikhulume noNgqongqoshe baphakathi kanye noNgqongqoshe weSifunda, kanye naboMeya sebashona phansi bayasebenza kulezo zindawo. Sifuna ukubona impumelelo ebantwini nezimpilo zabantu zenziwa ngcono. Sizwene noNgqongqoshe ukuthi ngonyaka ozayo phakathi koNcwaba noMandulo sizobuya khona la bazositshela ukuthi yiziphi izinto abazenzile. (Translation of isiZulu paragraphs follows.)

[Most of the work was done before we came here. At Mamello Primary School there were no toilets, and there were leakages which caused a terrible smell. The Department of Public Works is working there.

And even during our visits to other places we spoke to the Ministers, the MECs and the mayors about these problems and they are busy fixing them now. We want to see progress and the people’s lives being made better. We agreed with the Minister that next year between August and September we will come back here so that they can account on the issues they have addressed.]

Re tlo boa go lena re le begele, re ba fa ngwaga ba tle ba re botše gore ba dirile eng ka ditaba tšeo di hlagišitšwego ke batho ba. Ge re etla mo go tša Maphelo, re kwele gore go na le badirelaleago bao ba tsenago mošomong ka iri ya seswai ba tšwa ka seripagare go tšwa go iri ya lesomepedi mosegare. Mme Ntombela o boletše mo maabane, o ile go nyakišiša ka bothata bjoo. Ga gona motho yo a tlo tsenago mošomong ka iri ya seswai a tšwa ka iri lesomepedi re mo lefela tšhelete ka moka mafelelong a kgwedi. Ge e le gore ga ba nyake go šoma, tsela e bulegile a ba šuthelele ba bangwe.

Go na le taba yeo le e hlagišitšego, ge ke be ke le mo ke theeleditše ke ile ka e araba. Re boletše ka taba ya makhanselara ka mokgwa wo Mopresidente a šetšego a boletše gore ba seke ba swara mešomo ye mentši motho a nnoši. Ke le boditše ka re mmušo o a e hlokomela taba yeo gore le tla bona phetogo ka morago ga dikgetho tše di tlago tša mmušo wa selegaebo mmasepala gore motho o swanetše a kgethea gore ke morutiši goba ke mokhanselara goba ke eng. Mmušo o a e hlokomela taba yeo, le tla bona diphetogo di etla ka pejana, le tla di bona. Ge re etla go taba ya bosenyi. Le mo kwele MEC wa mMaphodisa le Mokhomišenare wa Profense wo moswa wa maphodisa le mmone ba mo tsebišitše mo. Mokhomišenare wa Profense Senganine o tšwa kua Limpopo ke mo tseba gabotse. Ke motho wa go tšea gabotse- botse, o tlo šomišana le lena gore bosenyi bjo bo tle bo fele, fela re kgopela batho ba go patrola le lena batho ba setšhaba le šomišane le di CPF le maphodisa gore re kgone go fetša bosenyi mo fase. Ka mantšu a mmalwa ao ke a fetša, ke a leboga Modulasetulo. (Translation of Sepedi paragraphs follows.)

[After one year they have to come back and report to us about their intervention on what has been said by these people. We heard that there are social workers who arrive at work at 8:00 in the morning and leave at 12:30 in the afternoon. Hon Ntombela indicated that she is going to investigate this. People do not have to arrive at their work at 8:00 in the morning and leave at 12:30 in the afternoon while they receive a full salary. If people do not want to work they must resign and give a chance to those who are ready to work.

We debated the issue of the councillors who hold two full-time jobs at the same time. The President indicated that the councillors are not allowed to hold two full-time jobs at the same time. I told you that the government is working on this issue and after the coming local government elections no person will be allowed to hold two jobs at the same time. You are going to see some changes very soon.

The MEC touched on the issue of crime and the new provincial commissioner N C Sengani has been introduced to you. I know him very well; he is from Limpopo. He is a hard worker and he is going to work with you in combating crime. We are also appealing to the public to work with the community police forum, CPF, and the police to curb crime. I hereby conclude my speech. Thank you, Chairperson.]

Mr A WATSON: Hon Chairperson, your Excellency Mr President, hon Chairperson of the National Council of Provinces, NCOP, hon Premier of the Free State, other dignitaries, hon members, ladies and gentlemen, …

… sanibonani mphakathi waseMamelodi. Ngiyanibingelela nonke. [… greetings to the community of Mamelodi. I greet you all.]

Kgotsong bomme le bontate ba Foreisetata. Ke a le dumedisa ka lebitso la DA. [Good day, ladies and gentlemen of the Free State. I greet you in the name of the DA.] [Laughter.]

Chairperson, service delivery, along with the eradication of poverty by promoting job creation, is indeed the biggest challenge facing the government of this country. The co-operation between all spheres of government is of paramount importance …

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, there is a point of order. The CHIEF WHIP OF THE COUNCIL: Deputy Chairperson, on a point of order: We are not at a rally but in Parliament for Parliament’s business. No one can greet people in a party’s name here. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Continue, hon Watson.

Mr A WATSON: Deputy Chairperson, I said that co-operation is of paramount importance if this is to be achieved. The question to ask is, however, whether the three spheres of government are working together efficiently, if at all.

Listening to the people this week and, in fact, on previous visits across the length and breadth of the country, it is obvious that government has failed dismally in this regard. From my own activities, along with my colleagues in the Select Committee on Co-operative Governance and Traditional Affairs, conducting intervention oversight visits to numerous municipalities, mostly dysfunctional and placed under administration, I can relate many instances of unbelievable mismanagement usually going hand in hand with massive corruption, Mr President, which could probably have been avoided or solved more speedily if co-operative governance had been practised properly.

Owing to the very limited time allocated to the opposition parties in this three-hour debate, I will have to limit my input to one or two examples.

Ba mphile metsotso e tsheletseng feela. [I was given six minutes only.]

I hate to tell the opposition members in Parliament this week, hon President, that the solution to their problems is to join your party. Now would it not be nice and profitable for all the cadres and comrades if the opposition disappeared completely? Would that not be a nice day for all of you?

Nee, meneer, dit is geheel en al nie ’n opsie nie. Net hier aan die agterkant van die berg is die majestuese setel van die distriks- munisipaliteit Thabo Mofutsanyana wat ook onder administrasie geplaas is. Luister bietjie hierna: Die burgermeester onder wie se beheer die munisipaliteit in chaos verval het, is nou die verantwoordelike LUR vir samewerkende regering in die Vrystaat en in beheer van plaaslike regering.

Ek vra u, meneer die President, of dit nou is hoe samewerking tussen die sfere van regering bevorder moet word. (Translation of Afrikaans paragraphs follows.)

[No, Sir, this is not an option at all. Just on the other side of this mountain one will find the majestic headquarters of the Thabo Mofutsanyana District Municipality that has also been placed under administration. Listen to this: The mayor under whose control the municipality fell into a state of chaos is now the MEC for co-operative governance in the Free State and is in charge of local government.

Now I’m asking you, Mr President, if this is how co-operation between spheres of government should be promoted.]

Deputy Chairperson, let me also tell the President about the municipality undoubtedly very close to his heart, which we visited last week. I am referring to Msunduzi, the so-called city of choice, where services virtually came to a standstill earlier this year because of the very evils of incompetence and corruption.

Fortunately, your MEC intervened in terms of the provisions of section 139 of the Constitution and appointed an administrator after the removal of the incompetent and reportedly corrupt mayor, together with a number of senior officers.

This administration secured the services of a very efficient task team, who not only uncovered maladministration and corruption of untold dimensions but also laid serious charges against a number of downright crooked officials in that administration. Our task was to investigate the continuation of the intervention, and I must say that I have seldom seen the community represented by a packed hall of citizens from all walks of life, so united in their condemnation of the situation and absolutely unanimous in their quest for the continuation of intervention and also for the indictment of the culprits.

The continuation of the good work done by them, until at least after the local government elections next year, was therefore a given but whilst the MEC eagerly agreed, she also ruled in favour of the immediate disbandment and removal of the task team, thereby negating the good work that had been done thus far and virtually guaranteeing the alleged perpetrators a free pass.

Ndiyabuza, Bawo uMongameli, ukuba bafihla ntoni? Ingathi bayalwamkela urhwaphilizo. Ndiyakuxelela ukuba ngale ndlela, lo mtshini wakho awungekhe usebenze. [Kwahlekwa.] (Translation of isiXhosa paragraph follows.)

[I am asking, hon President, what are they hiding? It seems as if they condone corruption. I am telling you, if this continues then your machine gun will stop functioning. [Laughter.]]

It seems to me …

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, you only have one minute left. Please, conclude.

Mr A WATSON: I’m finishing off. It seems to me, sir, that instead of speeding up service delivery, it has nearly become a conduit of corruption for those who have government connections in many areas of our country.

Mamelang hantle batho ba ka. Batho ba haeso ke batho ba ka. Nna ke holetse dithabeng tsa Lesotho, Mashaeng. Ke tloha ke le moo nna, ke batho ba ka ba mono. Ke hopola hantle hore moo Lesotho Basotho ba re: “Ho fepa difariki ke ho fumana madinyana”. Jwale ka selemo se tlang, le tla kgetha makhanselara a matjha. Le se ke la lebala hore ho fepa difariki ke ho fumana madinyana. Ke a leboha [Mahofi.] (Translation of Sesotho paragraph follows.)

[Listen attentively, my people. My fellow people are my people. I grew up in the mountains of Lesotho, in Mashaeng. I am originally from there, those are my people. I remember that in Lesotho the Basotho say: “When you feed the pigs, you will get piglets.” So, next year you will be choosing new councillors. Don’t forget that when you feed a pig, you will get piglets. Thank you. [Applause.]]

The PREMIER OF THE EASTERN CAPE (Ms N Kiviet): Hon Deputy Chairperson, hon President Baba Gedleyihlekisa Zuma, Chairperson of the NCOP Baba Mahlangu, Premier of the Free State province Baba Ace Magashule, all fellow premiers, MECs, Speakers, executive mayors and mayors, traditional leaders, Salga leadership, distinguished guests, ladies and gentlemen, I greet you all. Good morning.

The period since we came into office, deployed of course by the ANC, guided by the leadership of our hon President, about 18 months today, has been the most challenging, stimulating and rewarding period of our lives. We take pride in the fact that we, as a collective, have sought to understand our inherited challenges, devise strategic responses to those challenges and begin to see meaningful results. Leadership of such a large and complex project can never be easy, but when genuine progress becomes discernible, even after such a short period, it is indeed gratifying.

The challenges of poverty and underdevelopment, especially of the former Bantustans; unemployment and deindustrialisation, which has been exacerbated by the recent economic crisis; huge infrastructure and service backlogs; and service delivery challenges in both provincial and local government are well known.

Our response as provincial leadership has been a twofold strategy: firstly, to correct the inherent and systematic weaknesses in the state, focusing on health, education, local government and fiscal recovery.

Secondly, it is to address the structural weaknesses in the provincial economy through developing programmes and projects which, if resourced and implemented, will reposition the Eastern Cape on the new national growth path. These projects include the Coega transshipment hub, the Coega-Gauteng logistics corridor, the upgrade of the East London harbour, the Wild Coast N2 Development Corridor, the King Sabata Dalindyebo presidential project and the Umzimvubu water transfer scheme.

Another case in point where intersphere collaboration is working well is the King Sabata Dalindyebo Local Municipality intervention. In this intersphere collaboration a master plan for the economic hub of the region, which spans a 20-year horizon, has been developed. It addresses challenges and identifies 280 projects for implementation in various focus areas, as well as emphasising the need to approach the projects in an integrated and co-ordinated manner. It is worth mentioning that the importance of strengthening intergovernmental relations in order to bolster the principle and spirit of working together by all spheres of government is key.

Furthermore, the strategic goal of the turnaround in the Departments of Education and Health is to restore public and state trust in these departments. To reach this goal, the following objectives are being pursued, which are to eliminate corruption; to deliver on the departmental mandates in an effective and efficient manner; to employ appropriate capacity at both management and operational levels; and to achieve an unqualified audit opinion from the Auditor-General.

Already, as part of this turnaround, good progress has been made in easing the backlog in payments to service providers, identifying areas where huge savings have been made, and will continue to be made and improving the supply chain management contract and project management systems as part of addressing irregular and fruitless expenditure plaguing these two key departments.

In addition, disciplinary and criminal action has been instituted against many officials found to be complicit in these practices.

The process of establishing early childhood development centres, ECDCs, is progressing quite well, with 1 262 ECDCs being funded, benefiting 55 696 children. We have stabilised our school nutrition programme and currently 4 767 schools with 1,5 million learners are benefiting from that. Of these, 4 588 schools have been provided with cooking utensils and are on the cooked meals plan with 10 117 meal servers.

With regard to health care, there are now 31 community health centres implementing 24-hour services and 22 community health centres implementing 60% of the primary health care package in the province. The number of patients on antiretroviral treatment, ART, is now at 123 552, having tested 399 851 people as part of the HIV counselling and testing campaign. The TB cure rate is at 62,4% of TB patients that have been screened for HIV.

As you know, hon Deputy Chairperson, the Eastern Cape is largely a rural province. We are taking many positive steps towards making the lives of our rural communities better through integrated rural development initiatives and through putting in place rural development pilot sites in all districts of our province, taking on board the successes achieved at our first pilot site in Mhlontlo.

Next week, on 25 and 26 November in East London, we will be hosting our public sector transformation summit to drive home the message and reorientate our public servants in the various spheres of government to be part of the solution and not the problem in speeding up service delivery. Various build-up engagements have already taken place across the province to start addressing the mind-sets of employees to better serve the needs of our developmental state.

Several other notable service delivery achievements are: the province is progressing well with its Expanded Public Works Programme, EPWP, targets with the department creating a total of 22 294 work opportunities; we have completed our provincial industrial development strategy, which aligns well with the national government Industrial Policy Action Plan 2; and in the East London Industrial Development Zone, IDZ, four major investments have been completed - dairy worth R160 million, diamond polishing worth R150 million, mariculture worth R40 million and solar water heaters worth R120 million, which together will create 600 direct jobs and 1 000 indirect jobs. Furthermore, about 1 300 construction jobs have already been created in the IDZ.

The Eastern Cape government is committed to continuous improvement in the delivery of services to communities and stands firm in the belief that, through honesty and dedication in working together, we have achieved and shall continue to achieve more. The province is ensuring that the lessons learnt from the 2010 World Cup experience regarding the effective and efficient delivery of services are translated into current governance practices. We are mindful that a lot of work still lies ahead as we move towards the end of our current financial year. We would like to assure our President and the House at large that indeed the intersphere collaboration approach works well for the province, and has made us achieve more. Thank you, hon Deputy Chairperson. [Time expired.] [Applause.]

Mr A FRITZ (Western Cape): Deputy Chairperson, I want to acknowledge the hon President Jacob Zuma, the Chairperson of the NCOP Mr Mahlangu, the premiers, the MECs present here today, hon members, councillors, mayors, Salga, and most importantly, our bosses - people in the gallery at the back there who voted us into power, for whom we are supposed to be working.

Firstly, I want to say that the importance of distinctive, interdependent and interrelated spheres of government cannot be overemphasised. The different spheres must co-operate in order to give effect to coherent governance and ensure the wellbeing of all South Africans. By the same token it is exactly the independence of a sphere of government that can ensure that those rights afforded to all of us by our Constitution are protected.

Therefore, we should guard against increased centralisation and control under the national government as it undermines the spirit of our Constitution. It is important to have a separation of powers between local, provincial and national government in order to strengthen democracy and ensure accountability.

Centralisation affects the way in which we can hold our representatives accountable. It may also make justice more difficult to achieve where power is abused, as the different spheres of government form important checks and balances on each other.

I believe that we should create broader opportunities so that everyone in our society has a chance to fulfil his or her potential. I believe that each sphere of government - the local, the provincial and the national - has an important role to play and needs to be independent of the others.

Yes, they do need to work together. However, local solutions to local problems can provide better service delivery. What does a bureaucrat in Tshwane know about gangs in Hanover Park? What does an official sitting behind a desk in the capital know about the suffering of the people in this province in that they do not have access to clean running water? Each sphere should therefore be bolstered so that local municipalities can provide proper services to communities so that provinces can be actively involved in ensuring good levels of education and health, for example.

Having said that, it is the responsibility of ordinary citizens to ensure that they get the services that they are entitled to; they cannot provide running water and sanitation on their own. That is the role of government.

Two of the biggest threats to our democracy in society today are corruption and incompetence of government officials. Corruption prevents delivery of services, because some politicians have benefited from a deal that resulted in a project not being done, or the quality of that project is so bad that it will have to be done over at double the cost. Incompetence of officials that are unable to spend the money allocated to their particular municipality is another threat, because they don’t have the ability to do so because they are not trained to carry out that mandate.

However, in a democracy the politicians must fear the electorate and not the other way around. It is only when leaders start fearing the very people who voted for them that we will see real delivery and accountability. When leaders don’t deliver on their mandate the electorate has the power to remove them and vote for an alternative government. [Applause.] It is no use voting for a government in May and then toyi-toying down the streets in June protesting about the lack of service delivery. What sense does that make?

Voters, the people, get the government that they deserve. As voters, you have the right to choose your government. More importantly, you have the responsibility to hold that government to account when they fail in their duty. The only way you can do that is to hit hard where it hurts the most; and that is at the voting station.

Too many of our public representatives see public offices or being an MP as a nice, cushy job. Oh! Madam Chair, we must come out of that culture and do the work for which the poor voted. In a democracy you have a right to change your mind and that does not make you any less loyal to your particular movement or your ideology.

In the Western Cape government we have developed a system whereby every minister is held accountable based on their own performance. The model we have developed is based on each ministry obtaining the highest points of excellence. Our people deserve the best quality service and as provincial ministers we must be held accountable. In other words, I challenge voters to fire me as well if I don’t deliver.

Everybody, irrespective of their political affiliation, has a right to access all the services. This should never be dictated to you by any political party. No government is without its fair share of challenges. Officials are appointed to ensure that services are delivered to all the people, but if they are not fit for that purpose, the only ones losing out are in fact ordinary people like you and me.

When councillors are not qualified to do the job as public representatives, they should be replaced! We must stop the practice of appointing friends, girlfriends and party loyalists to jobs that they are not able to do! [Applause.] They need the necessary skills to be effective in the job that they are appointed to do. Otherwise, the ordinary man in the street will suffer.

Madam Chair, you can choose to put up with the lack of service delivery and continue to protest and toyi-toyi or you can use the democratic power of your vote and opt for an alternative government, which has earned the reputation for excellent service delivery for all the people.

It cannot be right for a community to burn their only library in the area down. It cannot be right for a community to burn motor vehicles that enter certain areas because of a lack of service delivery. It cannot be right for a bus full of innocent children from Khayelitsha – in our own township on their way to a music camp - to be injured by stone-throwing people, with a small group of them completely traumatising those children! It cannot be right for people to attack one of our vehicles transporting matric exam answer sheets from hundreds of matriculants of Khayelitsha. In our democracy we have legal channels through which aggrieved citizens can channel their grievances.

Where the law has been broken, where police and private vehicles are destroyed, the law must take its course and the guilty person must be brought to book. In this regard, we must also hold the police accountable to arrest the perpetrators and have them prosecuted. As a country we cannot afford to have our country slip into anarchy. South Africans must use their votes - not stones - to effect a change in government if it is needed. The power is in your hands.

The Western Cape government fully supports co-operative governance between each of the distinct spheres of government, in order for the people of this country to really benefit from service delivery of the highest standard. Each sphere of government needs to focus on their core area of service delivery, and once this has been achieved we will truly see our Constitution in action. I thank you. [Applause.]

Mr M SKWATSHA (Western Cape): Deputy Chairperson, Chairperson of the NCOP, His Excellency President Jacob Zuma, Premier Ace Magashule, all other premiers, hon members, nani nonke bantu abagcwele apha [and all the people who are here], I greet you. The ANC firmly welcomes the President’s address. Hon President, you were addressing us - as you have mentioned - in the birth province of the ANC. This is a province that holds political and historical significance in the history of our country.

This region is named after a great stalwart and son of our movement, Comrade Thabo Mofutsanyana, a dedicated compatriot who cultivated and nurtured the seeds of the struggle against apartheid. He, together with other ANC giants like Prof Z K Matthews, led the people to rise against the repressive laws of apartheid. Allow me to pay tribute to the great stalwarts and committed sons and daughters of our movement.

Deputy Chairperson, indeed, for the ANC, the Free State represents the birthplace of the struggle for freedom, and the crystallisation of the yearning of our people to create a formidable organisation to take up the fight against apartheid. It is fitting therefore that we extend our appreciation to the people of the Free State and this district. The President spoke about our government’s commitment to ensure that all spheres of government work together. As the ANC, we remain truly committed to advancing the principles of co-operative governance, and ensuring that the various spheres of government work together. The three spheres of government have a constitutional duty to assist and support each other, share information and consult each other, co-operate in the development and execution of their policies, adhere to agreed procedures and maintain friendly relations. These principles are clearly expressed in our Constitution.

All spheres of government should respect and adhere to the Constitution and the institutions that it has established, such as Chapter 9 institutions. We have heard of provinces, or rather a particular province, that undermines the Constitution. When the SA Human Rights Commission ruled against the Western Cape government on the dehumanising toilet saga in Khayelitsha, that particular government called this commission the political hit squad of the ANC.

We cannot allow any suggestions that seem to postulate that the institutions established through the Constitution are hit squads of the ANC, simply because they ruled against a particular government.

Shockingly, this past Tuesday, on 3rd Degree, one of the investigative programmes on e.tv, the mayor of the City of Cape Town, Mayor Dan Plato, in fact, supported the building of zinc toilets for the people of Khayelitsha, and he argued that because they stay in shacks their toilets should be the same. What else would you call this? Would the same be said if these people stayed in Constantia? You can only call this racism at its worst.

We have also seen projects like Sakhisizwe, which was the initiative of the ANC’s city council … [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Skwatsha, please wait just a second. Mr Watson, please behave.

Mr M SKWATSHA (Western Cape): Am I speaking too much truth? The DA-led city council cancelled projects that were created by our people for refuse removal in Mitchells Plain and surrounding areas in the Cape Flats. Some residents had their water cut, and when they complained they were accused of having been bribed or bought by the ANC. The selective delivery of services and neglect of townships by this city is an issue that all of us should look at with utmost urgency and vigilance. We as the ANC cannot keep quiet.

Our common struggle to build a better South Africa and ensure a better life for all the people knows no boundaries, as the President has emphasised. All artificial, political and geographic boundaries will have to be brazenly dismantled to ensure that all the people of South Africa enjoy the fruits of freedom, regardless of their location within the boundaries of our country. I want to support the MEC who has just spoken here in that the will of the people must always be respected, but I also want to assure the MEC that when people vote for a particular party, and a few months down the line they protest, that is a democratic expression of their will, and they have every right to do that. There is nothing wrong in doing so.

Hon Deputy Chairperson, as a person who comes from the Western Cape, I was excited to be in a province that is completely free. I interacted and communicated with the people of Diyatalawa, a project that you can see is there for the benefit of our people. We want to join the premier of the Free State in reassuring the people of this district and this municipality that we have heard of their plight.

Working together with our people will harness opportunities presented by this democracy. We are aware that as we prepare for next year’s elections our people will continue to be part of our resolve to dismantle the legacy of apartheid. As we prepare for these elections I also want to support the President in saying that councillors are hardworking, and for those few that are lazy there is no place. Our people can no longer wait to be free. [Applause.]

When we took up the fight against apartheid we understood that the darkness that had befallen our people for many years was only a momentary setback, and that the sun would rise to make their lives prosperous. Operation Hlasela is a case in point. [Applause.] Such was our optimism when we were fighting apartheid that we were inspired to take it to the streets against the might of apartheid, and we were only armed with our conviction. We did this because we knew of and understood the plight of our people. Despite their frustrations the people bear testimony to the fact that steadily, through operations like Hlasela, the dark clouds of despair are lifting, giving way to a season of hope. Our country has for centuries bled from a thousand wounds of neglect. We are now a nation at work building a better life for our people.

The ANC is conscious of the fact that transforming South Africa and ensuring a better quality of life is made harder by the effects of the apartheid system. We welcome the commitment made by the various spheres of government to move decisively, responding to the plight of the people of Thabo Mofutsanyana. We welcome the commitment made by the Free State government to work with local farmers to intensify the land reform programme, and to ensure that more land is in the hands of the rural poor.

We are pleased by the pronouncements that the people of Thabo Mofutsanyana, particularly the youth, will also join the masses of young people who are given technical skills and financial resources to generate economic opportunities.

Premier, with our own eyes we have seen the successes of Operation Hlasela in areas like Diyatalawa – as I have mentioned. We leave your province with a great sense of pride and urge you to continue with the good work. [Applause.]

We are making these pronouncements with neither hesitation nor doubt, precisely because we know that this provincial government is a people’s government. It continues to deliver a message that says to our people, “We know your challenges, and we will ensure that they are resolved so that you too can enjoy a better quality of life.”

We should ensure that criminals do not take over our streets and compromise the safety of our people in their homes, and in the streets. We want to thank the President for reassuring our nation that the ANC remains committed to the realisation of the interests of the masses of our people. Working together we can do more. I thank you. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Before I ask the next speaker to proceed, may I just plead with everyone who is going to come forward to bear with us in terms of time, please? Unfortunately I am going to cut your speaking time by two minutes, which will actually allow us to ensure that the people who are still going to travel are on time for their flights. Thanks.

Mr C MAKASI (Mpumalanga): Deputy Chairperson, His Excellency the President of South Africa, J G Zuma, Chairperson of the NCOP, hon premiers, hon speakers, members of the executive council, hon Members of Parliament and members of the provincial legislature, executive mayors and mayors, Salga representatives, councillors, traditional leaders, ladies and gentlemen, I stand to support the address by the President of South Africa, His Excellency President J G Zuma.

The pace of service delivery in provinces is not only dictated by the budget allocation and resources one has towards addressing the needs of our communities. Those needs come about through the legacies that were left behind by apartheid. The spate of incidents of municipal unrest that has taken place in the past year also points to the growing demand by our people for speedier service delivery despite our budgetary constraints in the provinces. The working together of all spheres of government therefore becomes critical in addressing this particular demand, while also noting that service delivery occurs in the local government space and sphere.

There is a growing need for us to harness our resources for the acceleration of poverty eradication through delivery of clean water and proper sanitation, and provision of electricity and decent shelter. We need to have a joint focus on the manner in which we conduct our government business, focusing on planning, enhancement of competencies and capacity to implement. We need to strengthen our monitoring and evaluation processes and the Ministries dealing with planning, monitoring and evaluation must strengthen this function across all spheres of government.

We need to also focus on the signed delivery and performance agreements, as the President has alluded, in order to improve performance across all spheres of government. We must discharge our responsibilities with effectiveness and efficiency, emphasising the priorities that we have set ourselves to achieve, using the Batho Pele principles. Public representatives must close the social distance that sometimes exists between them and the communities they serve; queries from the communities must be processed promptly within the set timeframes.

The Mpumalanga government has, in the past year, through its improved intergovernmental relations, managed to address challenges with regard to municipal unrest that erupted throughout the province immediately after the 2009 national government elections - three months after the elections, to be exact.

We are still indicating that it was the right of the people to do this. We have put four municipalities under section 139 and we have succeeded in stabilising these municipalities. As I am speaking all municipalities are currently stable. There were councillors who were forced to resign after these interventions by the province and let me indicate that in all the by- elections that resulted from these processes the ANC managed to win all seats. [Applause.] We have also launched a successful comprehensive rural development programme in the Mkhondo municipality in the Gert Sibande District. Our intention in the coming financial year is to roll out this programme to five more municipalities within the province. Under agriculture, we also have a programme called Masibuyele Emasimini whereby seeds are issued to households and we assist the households with ploughing. This programme is being rolled out throughout the province, together with the Department of Water and Environmental Affairs; we are rolling out massive water infrastructure projects across the province towards the provision of clean potable water to our communities.

We are continuously rehabilitating our coal haulage routes, the road network that is there in the Gert Sibande and Nkangala districts. We are going to continuously upgrade our roads. In the coming financial year we aim to upgrade up to 12 different roads across the province. We are going to continuously rehabilitate the route network that we have.

On the education front, let me indicate that we are currently doing away with all unsafe structures and our target is to make sure that all children learn under a safe roof, in a proper classroom. Realising that we did not perform very well in our examinations in the past year, we have come up with support programmes for learners. We are also happy with the support of and interventions that the Ministry of Basic Education has made in normalising challenges with regard to irregularities in the matric examination.

We are looking forward to an uneventful examination process and much improved examination results. We are also grateful for the support we enjoy from the Ministry of Higher Education towards the building of a university in the province; this is highly appreciated. We have made significant strides towards the provision of jobs.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, please conclude.

Mr C MAKASI: Deputy Chairperson, it is indeed through working together that all spheres of government can speed up service delivery and provide a better life for all, I thank you.

UMntwana M M M ZULU: Phini likaSihlalo wale Ndlu, Mama uMemela, mhlonishwa Mongameli wezwe lakithi eNingizimu Afrika, Msholozi, amalungu ahloniphekile ale Ndlu nezimeya zonke namakhosi akhona, singekufihle ukuthi lapha ezweni lakithi kusekhona izindawo lapho izinsiza zisahamba kancane khona. Njengakuso lesi sifundazwe kodwa akuyona leyo into engingama ngihlonize ngayo bese ngithi ngihlomile ngoba ngiyimbangi sekufanele ngeshele ngayo intombi. Uma singakwazi ukugcizelela ezinhlakeni zoMthethosisekelo wezwe njengoba nawe ushilo ngaphambilini ukuthi ukusebenzisana kohulumeni kuyinto ekhona emphakathini. Uma oNgqongqoshe bethu ezingeni likazwelonke bengangababukeli phansi oNgqongqoshe abakohulumeni bezifundazwe, cishe siyophumelela ukusiza bonke abantu. Uma oNgqongqoshe kuhulumeni bezifundazwe bengangabukeli phansi izimeya namakhansela kusho ukuthi ngempela siyokwazi ukuqeda usizi kubantu bakithi.

Akuzona lezi izinto esingahlala ngazo sigiye phezu kwazo. Nasi nje isibonelo esisodwa engingasenza, uma ungabheka umasipala walaphaya eNkandla unikezwa izigidi ezingama-49 ngonyaka, uyokwenzani kubantu baseNkandla? Ayikho into oyoyenza into eyinselele enkulu ngukuthi akufuneki kube khona imincintiswano phakathi kwayo yonke le mikhakha emithathu kahulumeni. Uma sithi sizoncintisana afike uKhabazela abhavumule eNkandla, kusho ukuthi udlala ngosizi lwabantu bakwamkhulu uMamonga. Uyazi-ke uKhabazela ukuthi uMamonga wayeshaya ekhaya; manje-ke asifisi-ke ukuthi abantu bakithi babe njalo.

KuMnumzane uMagashule, ngithi mnewethu uyingane encane enezinyanga eziyi-18 izelwe kodwa-ke yize noma kunjalo mina nginethemba ngoba kufanele ngilingise ubabamkhulu uMqalajuba. Nginethemba lokuthi kukhona lapho uya khona, [Ihlombe.] Ngithi ezinsizweni nezintombi zakithi osebenza nazo faka isitswebhu kakhulu ngoba engikubonile akuyona into engingabuya ngizogiya ngayo la, kodwa ngithi ngiyakwethemba njengendoda. Ngiyabonga. [Ihlombe.] (Translation of isiZulu speech follows.)

[Prince M M M ZULU: Deputy Chairperson, Ms Memela, hon President of our country, South Africa, Msholozi, hon members of this House, mayors and all chiefs present, we cannot hide the fact that here in our country there are places where service delivery is still slow. An example is this province, but that is not something I can stand here and perform about and use as my weapon to score political points because I am from the opposition. If we can emphasise the spheres of government as you have said before, working together as government is something that is happening in the communities. If our Ministers in the national sphere of government do not undermine our MECs, we will be close to helping everybody. If the MECs do not undermine the mayors and the councillors it is clear that we will be able to overcome the misery of our people.

These are not the things we should dwell on and make a noise about. Here is one example I can mention: If you look at Nkandla municipality, they are allocated R49 million a year, and what is it going to do for the people of Nkandla? It is not going to do anything. The only challenge is that there must not be any competition amongst these three spheres of government. If we are going to compete, Khabazela will come and growl at Nkandla, which means he is finding joy in the misery of the people of my grandfather Mamonga. Khabazela knows that Mamonga used corporal punishment at home for his children; now we do not wish for that to happen to our people.

Mr Magashule, my brother, you are an 18-month-old baby but even so I have faith because I have to try to be like my grandfather Mqalajuba. I have faith that you are going somewhere. [Applause.] To the brothers and sisters you are working with, you must tighten your ropes because what I saw is not something I would come and be amused about, but I have faith in you. Thank you. [Applause.]]

Mr K A SINCLAIR: Deputy Chairperson, and Your Excellency Mr President, given the fact that our time has been cut, I table my prepared speech. In essence the concept of my speech is a tribute to two people: the first one is the doctor who was recently raped in Pelonomi Hospital. It is a tribute to the nurses, doctors and personnel that provide health services to our people in the province and in South Africa.

The second tribute is to a Grade 2 learner, called Sibongile Zwane, a learner at Teboho Primary School. She fractured her arm last week Tuesday; 10 days later she has not been attended to by a doctor at the local hospital. Ten days, no doctor; and for little Sibongile, no service delivery. She is an example of what hundreds of citizens of this area attested to as everyday experiences trying to manage their day-to-day lives in this area.

This is certainly not what Thabo Mofutsanyana stood for. He once said, “All we were fighting for was to live like people in the country of our birth.” We heard this week many stories of people complaining. As one lady said, “We are treated as if we are not South African citizens.” Sibongile was, this week, treated as one of those.

In presenting alternatives, it is the Congress of the People’s considered view that drastic measures will be the only way to resolve addressing these challenges. [Interjections.]

Firstly, the NCOP must do serious introspection in terms of our functionality in dealing with our core function.

Secondly, the executive needs to take the activities of the NCOP more seriously. The hon President and the Deputy President must honour their commitments to the NCOP. Unfortunately, as once again experienced this week, the Ministers do not have the same contributions. In terms of co- operative governance, the roles and responsibilities of the various spheres of government need to be synchronised. There are too many chiefs and too few Indians; there is too much talk and too little action.

Lastly, the constitutional imperative of organised local government needs to be enhanced. Currently, Salga is only part of the high profile activities like today. We must increase their activity in the NCOP. If government does not act swiftly and implement some of these proposals, the experience of Sibongile Zwane this week, as echoed by many others, will become the norm. The people of this area certainly deserve better. I thank you. The PREMIER OF THE NORTHERN CAPE (Ms H Jenkins): Hon Deputy Chair of the NCOP and Chairperson of the session; Chairperson of the NCOP, Mr Mahlangu; Your Excellency President of the Republic of South Africa, Mr Jacob Zuma; Premier Ace Magashule, our host premier; all other premiers present, as well as the MECs representing their premiers; Members of the NCOP; Members of the National Assembly, as well as members of the provincial legislatures; Cllr Ramokhoase, representative of the SA Local Government Association, Salga; traditional leaders present, executive mayor and my good friend, Mayor Queen Mopedi; all mayors, executive mayors, speakers and councillors; people of South Africa, the Free State and Thabo Mafutsanyana in particular; and ladies and gentlemen, it is indeed a singular honour for the Northern Cape province to acknowledge and support the address of our President, Mr Jacob Zuma, to this august House.

We are gathered here with the express view of ensuring that we continue to serve our people with dedication, dignity and integrity, serving them selflessly. We are indeed delighted to speak on the pertinent matter, that of “All spheres of government working together to speed up the delivery of services”.

The spheres of government are intended to promote and facilitate co- operative decision-making, and make sure that policies and programmes of government, across all spheres, encourage service delivery that meets the needs of citizens in an effective way. When delivering his 2010 state of the nation address, our hon President, who is here with us today, called 2010 the year of action, with an emphasis on a government that knows where people live, understands their needs and works faster and smarter. Further priorities as identified by the President were, inter alia, education and health, crime fighting, land reform, rural development, and job creation.

Furthermore, our President reaffirmed that the South African government’s commitment is to advance the vision of an inclusive society: a South Africa that belongs to all; a nation united in its diversity; a people working together for the greater good of all. The developmental state is, thus, a concerted effort by government to build our nation, eradicate poverty, promote literacy, provide health and decent education, and grow the economy in a manner that must ensure that people are not left out, but are fully participating and become part of the solution to their problems, hardships and challenges.

It is for this reason that we say that the three spheres of government must live up to the expectation which, in essence, is aimed at accelerating the prospect of growth and development, as well as enhancing service delivery to all our people.

As the ANC-led government in the Northern Cape province, we have committed ourselves, as the leadership collective, to - for the duration of our term of office - striving to ensure that no person sleeps without food and that all people have decent shelter, access to electricity and provision of potable water, as well as proper infrastructure.

As a result of the rural characteristics of our province, we have also started to implement a comprehensive rural development strategy to respond to the myriad of problems faced by rural communities in a holistic and integrated manner. We will see to it that the programme succeeds and makes a meaningful and tangible impact on the lives of all rural communities in the province.

I need to make an example here of Riemvasmaak, in the Siyanda District, which is an area that is a notable example of an integrated and comprehensive rural development programme that is beginning to yield positive results and bring much needed services to this far-flung rural community. There is a need to strengthen the capacity of all our government structures, especially the local sphere of government, to discharge their responsibilities efficiently and effectively.

Yesterday, we launched an Expanded Public Works Programme, EPWP, project in Mier in the Kalahari where, in a joint venture between national, provincial and local governments, we were able to create job opportunities for 315 previously unemployed people, using labour-intensive EPWP methods. This venture is in anticipation of the Bloodhound Project which will take place in Hakskeen Pan in 2012, when Andy Green, a fighter pilot from Britain, will attempt to break the world land speed record. A number of infrastructural and tourism promotion projects will be embarked upon to ensure that we are ready to receive and host approximately 10 000 international visitors during the event.

The local sphere of government must, as a matter of principle, attract people with the requisite skills to ensure that they render services in a transparent, accountable and responsive manner. Municipalities need to grow local economies, so that they can respond to the twin challenges of poverty and unemployment, as well as contribute to the improvement of socioeconomic conditions of our communities.

As the Northern Cape provincial government, we will be launching Operation Nala, with the express aim of integrating and co-ordinating our efforts across all spheres of government, and to change the pace and effectiveness of service delivery.

I would also like to take this opportunity to inform this House that the Square Kilometre Array, SKA, as well as the Karoo Array Telescope programme and infrastructural preparations, are progressing well. This is also an example of where the three spheres of government are working very well together.

Considering that we only attained freedom in 1994 and being mindful of the fact that, within the context of state affordability, we have progressed remarkably well as a nation, we are, however, obliged to acknowledge that much work lies ahead in our collective attempt to serve as a sparkling example to the rest of the world that indeed South Africa is a winning nation. Thank you. [Applause.]

Cllr J RAMOKHOASE (Salga): Hon Deputy Chairperson of the NCOP, Chairperson of the NCOP, His Excellency President Jacob Zuma, hon Minister, Deputy Ministers, hon premiers, hon Premier of the Free State Mr Ace Magashule, hon speakers of provincial legislatures, deputy speakers of legislatures, MECs, MPs, MPLs, hon executive mayors, mayors, speakers of councils, councillors, Salga leadership, Chairperson of Traditional Leaders, our officials, the House at large and my fellow people of the Free State, as I stand in front of you today, I am putting forward the voice of the people and the SA Local Government Association, as well as all supporters of the local government.

We stand here today, Mr President, to support the statement you have just put forward because it is a reflection of the school of thought that Salga believes in throughout. We therefore want to support the statement and commit to continuing to support the President and his Parliament throughout.

As we march towards the 2011 local government elections, this week has given us a significant opportunity as a province and government as a whole to reflect on the progress made in expanding the delivery of services and to acknowledge the challenges facing government in our quest to speed up service delivery to our people.

Effective performance against our constitutional mandate requires a coherent and co-ordinated set of support initiatives from all spheres of government. While local government is uniquely positioned as the sphere of government closest to the people, it is the responsibility of all spheres of government to ensure a better life for our people. But, as indicated earlier in the week, the belief that we are one government is yet to be solidified in policy, practice and implementation. The President has just alluded to that.

While there is a realisation that the achievement of shared growth and integrated sustainable development requires collaboration and partnership among various actors, particularly between the spheres of government and its departments, it has proven to be especially challenging in the light of the varied roles and resources of the different spheres to invest in the same physical spaces. Remember that it is a call by the President that we need to do things quicker, cheaper and faster.

The fact is that the national and provincial governments, while equally responsible, are not at the coalface of the delivery chain and so are not subjected to the same pressure as local government, which is then perceived as the villain when service delivery breaks down. That is a matter that we are all aware of and we believe and understand that local government and councillors are at the coalface for the people.

In this regard, we would like to acknowledge the work of Parliament’s multisectoral Ad Hoc Committee on co-ordinated Oversight on Service Delivery, whose report was adopted by the National Assembly on 10 September. This was very good for us. We believe that this has created an understanding among policy-makers of the complex Co-operative governance framework within which local government operates and the support required by municipalities in delivering key government services. It is very important that other spheres of government see it as we see it from Salga’s perspective.

Parliament would also be able to hold executives at national level to account for the incoherent approaches followed with regard to supporting or failing to support local government and failing to adhere to the constitutional and legislative framework when dealing with local government. This is an important element in moving towards an integrated governance framework centred on local government.

Accountability is fundamental to our democratic system of government, as embedded in section 195 of the Constitution. It should also form the bedrock of our outcomes-based approach and commitment to do things differently and result in a clear understanding and appreciation of the roles and responsibilities of the relevant participants, importantly, those of the responsible political, administrative and financial heads.

Sound governance is often a combination of legal and organisational structure, management and leadership, aimed at facilitating accountability and improving performance. Failure to do so in practice, on our part, will ultimately lead to poor service delivery.

However, equally critical to its success is that politicians and administrators alike must understand the interrelationship and interdependencies of the activities in the governance environment. The importance of sound monitoring systems – the President has alluded to those things - and instruments cannot be overstated. Our interrelationship system and supporting structures must ensure that relevant information flows up, down, across and in all levels in the various government departments in a timely manner to allow for effective decision-making.

To conclude, in my view, unless an integrated and coherent approach to addressing the challenge of governance is taken, the spheres and departments of government will continue to plan and implement policies and programmes in isolation from each other. Such an approach is prudent and vital because, from the residents’ and investors’ perspective, there is only one government, also mentioned by the President. Communities are not interested in which sphere of government or which department is responsible for providing housing, sanitation or health care. They become frustrated when municipalities appear to pass the buck to provincial or national government. We must begin to operate as one government. Thank you. [Time expired.] [Applause.]

The PREMIER OF KWAZULU-NATAL (Dr Z L Mkhize): His Excellency President Zuma, the Chair and the Deputy Chair of the NCOP, Premier Magashule – our host premier – premiers, MECs and Members of the NCOP, Salga members, mayors, councillors, traditional and religious leaders, and the community of the Free State and neighbouring provinces, we want to thank the NCOP for inviting us to this session and we also want to indicate our appreciation to the President for his address.

I wish to indicate that KwaZulu-Natal is making progress in meeting the priorities of our government in line with the electoral mandate. All national government outcomes have been aligned with departmental plans in KwaZulu-Natal. The signing of service delivery agreements by the premier and the MEC with the Minister signifies KwaZulu-Natal’s commitment to ensure that targets set by the President are met. This has necessitated change in the manner of doing business on the part of provincial governments, with more integration and co-operation across departments and all spheres of government. We want to agree with the President that provinces should not behave like independent states. They should respect the fact that in some cases there might be a different party in charge of a province other than the ruling party at national level.

The challenge which was faced by government at the beginning of our term was that of overexpenditure totalling more than R4 billion, mainly due to salary increases and the occupation-specific dispensation in the departments of health and education. The provincial government put in place severe austerity measures to reduce this. The process was uncomfortable and required resolute leadership in implementation, which the provincial government and political leadership provided, with good results. This financial year we face a much better year with no overexpenditure forecast. The province began to stay cash-positive and earned positive praise from the Minister of Finance, who recommended that this model be used for other sectors of government.

A strong effort has been put into combating fraud and corruption in government, with several investigations and progress resulting in several public servants being suspended and internal disciplinary procedures being initiated through a dedicated team led by a retired judge. Several other public servants and private individuals are facing arrest or are already facing courts or have been convicted. The message of zero tolerance against fraud and corruption is loud and clear.

We have committed ourselves to ensuring food security and supporting agrarian and land reform. We embarked on a One Home, One Garden programme, supplying seeds and implements to indigent families to encourage food security. We formed a special vehicle, which we call the Agribusiness Development Agency, to expedite land reform and save emerging farmers and beneficiaries of land reform from losing their farms through repossession by banks. Indications are that the agency is yielding good results, and the mechanisation by our provincial government is assisting farmers on communal land to maximise productivity and move towards self-sufficiency. We have received a lot of support. One example is that of SA Breweries, where we have been able to persuade them to remove beer pictures on a number of township billboards and put up vegetable billboards that say “One Home, One Garden”. They also complied with us on a contract of 5 000 tons of maize to be purchased from emerging farmers on communal land.

Crime prevention measures are co-ordinated through our united front against crime, bringing together the police and the community and business leaders to combat crime. This operation has ensured that community safety structures focus on priority crimes, including those in rural areas as well as in the farming community. We have had shocking massacres such as in Ntshongweni where 10 people, including a six–month-old baby, were killed. Police responded with speed in apprehending the perpetrators. Unfortunately two of those suspects were killed in the exchange of fire with the police. The remaining suspect made a full confession to the court on this crime. We commend the police on this and on other cases for a speedy response and firm hand in sending a message that crime does not pay and that the government is serious about fighting crime.

We are embarking on a strong campaign to fight drugs. They seem to be a factor in most of the shocking crimes, especially the type which is locally known as “whoonga”. We appeal to our national government to urgently assist in a comprehensive programme to combat drugs, including the rehabilitation of addicts. Our programme will involve community organisations - religious, cultural and others – sports mobilisation and attention on youth development, women and vulnerable groups.

HIV and Aids is most severe in our province. We have embarked on a very strong campaign to deal with this challenge, ensuring that we have united leadership at all levels, which plays a very strong role in leading the campaign. We have designed a programme for implementation in every ward, mobilising all community structures and individuals to work together with public servants to fight the disease. Almost all of 300 clinics have started dispensing antiretroviral treatment and anti-TB treatment together as instructed by the President. We have also initiated male medical circumcision. Up to now - in the past nine months - we have circumcised 18 000 males. Community health workers have been integrated to focus on this important duty as a first line in the fight against diseases in our primary health system, managed jointly by the departments of social development and health.

More than 3 000 new nursing posts have been filled. The community volunteer service programme has been initiated to ensure peer education and behavioural change amongst the youth whilst providing skills and job opportunities. This is what we believe is important in combating the spread of HIV and Aids. It will also deal with problems of crime amongst young people. We thank the Ministers of Defence and of Rural Development and Land Reform for support in this particular programme.

Additional support has also been given to boost education and improve matric results and skills development. We are aggressively addressing infrastructure backlogs to ensure job creation. But we also had block housing projects. We have revived many of these. Yesterday I inspected and handed over a number of successfully completed houses to new owners in eThekwini. Provincial government continues to work together with municipalities to speed up service delivery. Whilst 500 000 houses have been delivered since 1994, we note that 900 000 houses remain as a backlog for the province.

Road construction, especially with regard to access to rural areas, ensures access to public amenities and opens up economic opportunities. The Expanded Public Works Programme has assisted in job creation, and we use infrastructure delivery to keep up the economic growth stimulated by the 2010 World Cup. On 9 and 10 December we will convene a summit on water and energy which will be hosted to speed up delivery of these services together with municipalities.

We continue to face challenges in municipalities and have had to impose section 139 of the Constitution on several municipalities - Msunduzi, Indaka, Tugela and uMhlabuyalingana. This is also showing good results. I just want to indicate that it was the ANC leadership that removed the mayor and executive committee members, taking responsibility for the challenges that were taking place in these municipalities. So, the information of the hon Mr Watson is deficient. KwaZulu-Natal … [Interjections.]

Thank you very much. We continue to work together to deliver a better life for all. KwaZulu-Natal supports the approach the President has taken. [Time expired.] [Applause.]

Mr J J GUNDA: Hon Deputy Chair, hon Chair and His Excellency hon President, all protocol observed, allow me to just add my voice to what the President said this morning when he said that officials in departments are not doing people a favour when they carry out service delivery. He said it is their duty to carry out service delivery because it is the people who voted for the government and they work on behalf of the people there.

Let me echo the words of the Chairperson on Monday night when he said that we must think, talk and act. I think it is high time there was action in this rural area; it is high time people were served with dignity; and it is high time we served the people of this area with respect and honour so that they can reap the fruits of the struggle.

Let me also applaud the premier of this province, hon Ace Magashule. He set an example. I was amazed, and I agree with the hon Chairperson. Since we have taken Parliament to the people, he is the first premier to be here every day of the week. [Applause.] I challenge all other premiers in this country to do the same. Take the people seriously! [Applause.]

Something else that I would like to say is that he set an example by building 60 m2 to 70 m2 houses for the elderly. He appreciates the elderly because it is because of the elderly that we are what we are today. They have suffered and struggled. Why must they still suffer with their own government? [Applause.] It is time that he moved away from petty issues and served the people; it is time that he took the bull by the horns; and it is time that he set an example. Let us remove those who are not willing to listen or work! [Applause.] He was born in this province so that this province can prosper. Some of the leaders of this province - councillors - put this area in a mess because they don’t want to think or talk and therefore can’t act. [Applause.] You need to think and talk, and then you can act. I challenge this district municipality. When we listened to other people during this week, there was an indication that there is no youth development. [Applause.] The youth are crying. How can people plead for help in the new democracy for 16 years? The premier can’t do it alone. He needs the people to assist him. Remember what he said in the extended lekgotla this year … [Interjections.] [Time expired.]

Mofts M QABATHE (Foreistata): Ha ke lebohe Motsamaisi wa mosebetsi. Ke lebisa tlhompho e kgolo ho Mopresidente wa rona Jacob Zuma, Modulasetulo le Motlatsi wa Modulasetulo wa Lekgotla la Naha la Diprovense, Letona Ace Magashule le Matona a mang, Maloko a Lekgotla la Naha la Diprovense le Maloko a Matlo a ketsamelao, marena a rona, boetapele ba Lekgotla la Mmuso wa Selehae la Afrika Borwa, setjhaba sa Freisetata, le bohlokwa haholo.

Ha ke nke monyetla ona Motsamaisi, ho leboha setjhaba ka ho tshepa mokgatlo wa ANC ka puso ya naha ya bona. Mokgatlo wa ANC o ile wa re puso e tla ba ya setjhaba ka setjhaba. Re lebohe mokgatlo wa ANC ka ho tshepahala kanong eo. Ke ena Palamente e tlile bathong, e a mamela. Ha e ipate, ha e balehe mme ha e bolaise batho gase e llisang mahlo le dithunya. [Mahofi.] Mehleng ya mmuso wa bohanyapetsi re ne re tla e bona kae ntho e monate hakana?

Ba mebala yohle ka ditumelo ho fapana, ba batona le ba batshehadi, re kgona ho phela le ho nyakalla mmoho. Ba ileng ba tswa ka hara naha ba ntse ba kgutla. Ba bone hore ha ho na makgulo a matala ho feta makgulo a Afrika Borwa tlasa boetapele ba mokgatlo wa ANC. Tshepo ena ya setjhaba ho puso ya mokgatlo wa ANC e bonahetse hape le ka dikgetho tsa tlatsetso tseo re tswang ho tsona. Wa ripitla, wa papetla mokgatlo wa ANC. Wa bontsha hore ke ona lefika la mengwaha setjhabeng sa rona mme o tla nne o boele o etse jwalo le ka dikgetho tsa mebuso ya lehae tseo re yang ho tsona. Ke mokgatlo wa ANC feela oo e leng tshepo ya batho. [Mahofi.]

Naha ya rona ya hlohonolofatswa ka ho ba le boetapele bo tsotellang, bo mamelang, bo ikokobeditseng mme bo le bathong tlasa boetapele ba Mopresidente Jacob Zuma. Moetapele wa sebele ya sa kgeseng mmala kapa maemo a motho. Borapolasi le mmapolasi ba Freisetata, ba batsho le ba basweu ke dipaki tsa taba eo ke e buang. Mopresidente o ba etetse le pele e ka ba Mopresidente. A ba etela le ka morao hoba e be Mopresidente leetong la hae la morao-rao mane Boertjiefees, Bultfontein.

Boetapeleng ba mokgatlo wa ANC re fetola maphelo mapolasing. Maloko a Palamente a iponetse. Le tswa Diyatalawa matlong a polasi a disekwere tsa dimetara tse 74. Dikamore tsa ho robala di tharo ho isa boneng mme di na le kamore ya ho hlapela le ntlwana. Ho na le sekolo, sebaka sa tlhokomelo ya bana le holo. Ba reketswe dikgomo mme ba ahelwa sebaka sa ho di hama. Ba batletswe dikgoho le ho ahelwa dirobe tsa tsona. Re ntse re lokisa ditsela moo. Mafapha kaofela a na le seabo ho tsetela Motseng wa Temo wa Diyatalawa. Kgolokweng ha e a salla morao. Re ahela morena le setjhaba matlo. Re ahile le tleleniki moo. (Translation of Sesotho paragraphs follows.)

[Ms M QABATHE (Free State): I would like to thank the Chairperson. I want to express my greatest respect to our President Jacob Zuma, Chairperson and Deputy Chairperson of the National Council of Provinces, Premier Ace Magashule and other MECs, Members of the NCOP and members of the legislatures, our chiefs, leadership of the SA Local Government Association, and the people of the Free State; you are very important.

Let me take this opportunity, Chairperson, and thank the people for having trust in the ANC to govern their country. The ANC said that this government would be by the people for the people. We also thank the ANC for being trustworthy in that promise. Parliament has finally come to the people. It listens. It does not hide and it does not run away and fire teargas and rubber bullets at the people. [Applause.] Where could we see this during the apartheid government?

People from different races and different positions, males and females, live and rejoice together. Those who left the country are now coming back. They have realised that there are no greener pastures than here in South Africa under the leadership of the ANC. People’s trust in the ANC has been evident even in the recent by-elections. The ANC destroyed and defeated others. It showed that it is the backbone of our nation and will do the same in the upcoming municipal elections. The ANC is the only hope for the people. [Applause.]

Our country is blessed with a caring leadership that listens, obeys and is always with the people under the leadership of President Jacob Zuma. He is a true leader who does not discriminate against race or one’s position. Free State farmers, both black and white, are witnesses of what I am talking about. The President visited them before even becoming the President. He also visited them after he became President, during his recent trip to the Boertjiefees [Boertjie festival] in Bultfontein.

The leadership of the ANC is changing the lives of those living in the farms. Members of Parliament have witnessed this. You visited farm houses of 74 m2 in Diyatalawa. They have three to four bedrooms and a bathroom with a toilet. There is a school, a crèche and a hall. Cows were bought for farmers and they were provided with structures where they could milk them. Chickens were bought for them and chicken hatcheries were built. We are still constructing roads there. All departments have a role to play to invest in Diyatalawa Agri-Village. Kgolokweng has not been left behind. We are building houses for the chief and the community. We have also built a clinic.]

All government spheres are working together to give a comprehensive service.

Sena ke qalo feela hoba re sa fetela mapolasing a Wilhelmina, Cherry le a mang. Re sebetsa mmoho le matjhaba rona pusong ya mokgatlo wa ANC. Ke kahoo re fumaneng thuso ya dimilione tse 45 ho tswa mmusong wa China. Re ntse re aha sebaka sa qhotsiso ya mahe a ditlhapi mane letamong la Xhariep, seterekeng sa Xhariep. Kaho e a phethelwa kgweding ya Tshitwe. [Mahofi.]

Hosane Letona Nkwinti o tla be a le motseng wa Bloemfontein moo a tla beng a thusa borapolasi-potlana ho ba le karolo ya diabo ntlong e nngwe ya tse kgolo tsa ho buhela diphoofolo Bloemfontein. Letona Tina Joemat-Pettersson o tla tlisa dipakana tse 85 tsa diterekere Freisetata. (Translation of Sesotho paragraphs follows.)

[This is just the beginning because we are also going to do the same at farms like Wilhelmina, Cherry and others. We work together with communities in the ANC government. That is why we received a donation of R45 million from the government of China. We are busy building a fish hatchery on the Xhariep dam, Xhariep district. The construction will be completed in December. [Applause.]

Minister Nkwinti will be in Bloemfontein tomorrow to assist developing farmers to acquire shares in one of the biggest abattoirs in Bloemfontein. Minister Tina Joemat-Pettersson will bring along 85 tractors to the Free State.]

Indeed all spheres of government are working together to speed up service delivery.

Tlasa boetapele ba mmuso wa mokgatlo wa ANC, re ile ra tshwara dikopano tsa basebeletsi ba mapolasi diprovenseng kaofela. Di ile tsa felella ka Kopano ya Naha ya Baseletsi ba Mapolasi. Ka morao ho Kopano eo, mona Freisetata re ile ra hira babatlisisi ba babedi le motho ya nang le digerata tsa molao ho sala morao le ho rarolla dinyewe tsohle tsa ho lelekwa mosebetsing ka tsela e seng molaong, ho lelekwa polasing le ho thunthetswa ha ditokelo tsa botho tse ileng tsa hlahiswa kopanong eo re neng re le ho yona. Tse ngata re se re di hlotse le ho di lokisa. Maqhama re a a aha mahareng a borapolasi le basebetsi ba bona.

Mmuso wa mokgatlo wa ANC o aha naha. Re le mmoho ba batsho, ba basweu le ba mmala, re ketekile Mohope wa Lefatshe mapolasing, ra isa dithelebishene tse tsamaiswang mapolasing, ra tshehetsa Bafana Bafana re le kaofela, re le ntho e le nngwe, re kopane.

Re ntse re kopane kaofela, ba batsho le ba basweu, re hlwekisa metse. Re hlwekisa dinoka tsa rona. Re sebetsa mmoho le bomasepala. Ha re otlwa ke koduwa ya sewa sa kgohlo ya Rift, re ile ra nna ra sebetsa mmoho. Ha re welwa ke koduwa ya mello ya hlaha e ileng ya tjhesa mona Freisetata, re ile ra nna ra sebetsa mmoho ho tima hlaha. Mmoho, ba batsho le ba basweu, re a sebetsa. Ha ho na mang kapa mang ya tla kena dipakeng tsa rona ho re qabanya. Presidente re o utlwile. (Translation of Sesotho paragraphs follows.)

[We have held meetings with farm workers in all provinces under the leadership of the ANC government. This ended with the National Farm workers’ Summit. In the Free State, we hired two investigators and somebody with a law degree after the summit to follow up and resolve all unfair dismissal cases, farm evictions and human rights abuses that were raised in the summit we attended. We have dealt with and resolved a lot of issues. We built relationships between farmers and their workers.

The ANC government is building the nation. Together as blacks, whites and coloureds we celebrated the World Cup on the farms. We brought big screens, and we supported Bafana Bafana together as one and united.

We are all still together, blacks and whites, to purify water. We purify our rivers. We work together with the municipalities. We also worked together when we were hit by Rift Valley Fever. When we were experiencing wild veld fires around the Free State, we continued to work together to battle the blaze. We work together, blacks and whites. No one will come between us and cause friction. We have heard you, President.]

All agricultural projects that have faltered will be given immediate attention. On local government and human settlement, we say to the nation we are on course with regard to Operation Clean Audit 2014. The Auditor- General’s report …

… e bontsha hore ho na le ntlafalo mafapheng ka kakaretso. Bomasepala le bona ba tlo ba motjheng. Re lebelletse diphetoho tse ntle. Re kgonne hore ho bomasepala ba 25 bao re nang le bona, re kwale dikgeo tse 23 tsa Baofisiri ba ka Sehloohong ba Ditjhelete. Botshwari ba Matlotlo le Puso ya Kopanelo le Merero ya Setso di sebetsa mmoho le bomasepala. Mashano ana a mokgatlo wa DA a ho reka divoutu ha se nnete. Ho a sebetswa ho bomasepala. [Mahofi.]

Tlasa boetapele ba Letona Ace Magashule, boetapele bo nang le tjhebelopele, ditho tsa Lekgotla la Phethahatso provenseng di ronngwe ho sebetsa le bomasepala ho tlisa botsitso le momahano ya maqhama a tshebetso … (Translation of Sesotho paragraphs follows.)

[… shows that there is an improvement in the departments in general. Municipalities will follow suit. We are expecting favourable changes. We were able to fill 23 of the 25 chief financial officer vacancies in our municipalities. Treasury, and Co-operative Governance, Traditional Affairs, and Human Settlements work together with the municipalities. Rumours by the DA about other people buying votes are not true. People work hard in the municipalities. [Applause.]

Under the leadership of Premier Ace Magashule, the leadership with vision, members of the executive council in the province have been mandated to work with the municipalities to bring stability and ideas for working relationships …]

…to enable us to deal proactively with the challenges rather than reacting to them.

Ha e yo ntho e ntseng e buuwa ya batho ba lapetseng divoutu mme ba bua dintho tse ngata tseo re sa di tsebeng. [There is no such thing as people being hungry for votes. They talk about so many things that we do not know about.]

All spheres of government are definitely working together, Mr President!

O botsa potso kgafetsa, Presidente … [You often ask a question, Mr President …]

Mr A WATSON: Madam Chair, on a point of order: Can you please rule? Is it in order for a member to stand at the podium and call another member a liar? The interpreter said that. Ms M QABATHE (Free State): Ke a leboha Motsamaisi wa dipuisano. Ke ne ke re Mopresidente o re botsa potso kgafetsa. O re: … [Thank you, Chairperson. I was saying the President often asks a question. He asks: …]

“What is it that you are doing differently where you are?”

Potso ena re ile ra e utlwa. Ke a leboha Motsamaisi wa dipuisano. Mosebetsi o etswang Freisetata o mongata haholo. Feela re re mmuso wa mokgatlo wa ANC tlasa boetapele ba Mopresidente Jacob Zuma ke wona feela, ha ho na o mong. (Translation of Sesotho paragraph follows.)

[We have heard this question. Thank you, Chairperson. There is a lot of work that has been done in the Free State. We say the ANC government, under the leadership of President Jacob Zuma, is the only one, there is no other.]

The ANC lives and the ANC leads. [Applause.]

Mr M NKOMFE (Gauteng): Hon Chairperson of the NCOP, Mr Mninwa Mahlangu; Deputy Chair of the NCOP; His Excellency the President of the Republic, Baba Jacob Zuma; esteemed NCOP delegates that are here; the Premier of the Free State, Ace Magashule, and other premiers and hon members, let me start by saying that as the Gauteng province we acknowledge and welcome the invitation from the NCOP to make a statement, and also welcome and align ourselves with the address by the President of the Republic of South Africa.

One of the critical challenges we face is the delivery of quality services, and in this context we are talking of delivery on time and with the necessary speed to meet the expectations of our people. The scale and the enormity of the challenge are such that our people are impatient for effective service delivery. It is in this context that numerous groupings have come up to highlight the living conditions of our people and some of the protests that we are seeing should be seen.

It is also important that I indicate the fact that, as government, we have always been aware of the concerns of our people and the conditions in which they are living. In this regard, we have consistently crafted different approaches and tactics to address the hardships and suffering afflicting our people. Notwithstanding the fact that service delivery is taking place at a very high level that has never been seen in our country before, in my view it is not enough; and I think more can still be done.

However, the conditions that impact on the rich and the impact of service must actually be appreciated. In this context, I want to factor in the Gauteng province and I’m addressing the national executive here, Mr President, to say that the main issue of limited resources is the one that is going to give us problems. I’m quite aware that the Treasury and national executive committee are doing quite a lot in addressing what has come to be known as the equitable share.

Our province, as one knows, is a province of “amagoduka” [people who reside in rural areas but work in the urban areas]. I’m sure each one of us here knows a person who is staying in Gauteng. Therefore, we have the challenge of in-migration and that in-migration is going to result in poverty and cause limitations in so far as the issue of resources and service delivery is concerned. We want to raise that issue very sharply.

There are four issues that we want to raise: Firstly, we are conscious of the critical areas that require intervention in the three spheres of government. Now, we know that our greatest weakness, as government generally, across the system is the effective co-ordination of programmes amongst the three spheres of government. This has resulted in a situation where programmes are conceived, only to falter on implementation because delineation of roles and responsibilities is not clear and this results in poor delivery of programmes. This challenge of co-ordination sometimes leads to squabbles over who controls the budget for which programme. Unfortunately and cumulatively, this tends to compromise service delivery.

Secondly, the other challenges we have observed are poor planning and a lack of capacity. In many instances poor planning manifests itself in the duplication of projects, which results in resources being wasted across the three spheres of government. It also shows in situations where we plan and implement projects without encouraging the involvement of communities, resulting in projects being vandalised as an expression of rejection by communities. This reflects the problem of capacity within our Public Service, as well as a lack of commitment. That talks directly to the issue of diagnosing the real problems of our people and ensuring that we correctly, concretely and adequately pull out what the issues are.

Generally, the area of intergovernmental relations remains a challenge in our system of government. We need a proper framework and strategy that will promote closer working relations amongst the three spheres of government. In Gauteng we have gone a long way in working on that.

Notwithstanding the challenges that we have raised, in Gauteng we are working hard to strengthen the areas of weakness in this regard. The structures to promote co-ordination between municipalities and the provincial government are in place and are addressing these situations. We are now putting more emphasis on resources, particularly with regard to monitoring and evaluation. We understand that if we focus on this area it will be easy for us to detect problems in the system as early as possible. We are happy that the SA Local Government Association, Salga, is actually on board but I think it is something that is still a challenge; we have to work very hard on that.

We have also embarked on a drive to improve skills, particularly through training amongst employees, fill vacancies and also follow strict recruitment procedures, particularly with regard to searching for the best talent in the market. This is done in order to address the issue of capacity and competence in the workplace. Two issues that are very important in Gauteng - and I’m sure even in other provinces - are the issues of project management capacity skills within government and, most importantly, contract management, because very often our government is actually adversely affected by the manner in which our Public Service negotiates our contracts, as it were.

It is our belief that government can achieve more and deliver quality services if the three spheres of government work in sync with one another. There is no doubt that collaboration amongst the three spheres should be encouraged, and if we want to speed up delivery we should actually go in that direction. It is in this regard that, as Gauteng, we think that the platform of the NCOP will ensure the realisation of the objective of ensuring that there is co-operation amongst the municipalities. Thank you.

Vho M G PADAGI (Limpopo): Mudzulatshidulo; Mudzulatshidulo wa NCOP, Vho M J Mahlangu; Phuresidennde wa Riphabuḽiki ya Afurika Tshipembe, Vho Jacob Zuma; Mulangavundu wa Free State, Vho Ace Magashule na vhaṅwe vhalangavundu vho konaho u swika, ndi khou vha resha. (Translation of Tshivenda paragraph follows.)

[Mr M G PADAGI (Limpopo): Deputy Chairperson; Chairperson of the NCOP, Mr M J Mahlangu; President of the Republic of South Africa, Mr Jacob Zuma; Premier of the Free State, Mr Ace Magashule, and other premiers who are present, I greet you.]

I bring you warm and fraternal greetings from the government and the people of Limpopo.

Chairperson, in Limpopo we have vibrant policies in place which seek to guide our energy in a direction that benefits the people, especially our people in the rural areas, as Limpopo is largely rural and the basic services do not easily reach them. We have devoted much of our attention to the cause of ensuring proper implementation of such policies in an environment that is planned, monitored and perpetually evaluated.

This approach enables us to regularly inspect and evaluate our impact as government in delivering and making interventions where it is necessary. Our programme of action for service delivery is underpinned by the Medium- Term Strategic Framework, which is the bedrock of our administrations policy direction.

What forms part of our key priority areas are the provision and the improvement of health care facilities; the Comprehensive Rural Development Programme, which is linked to land and agrarian reform and food security; the enhancement of skills and human resources through, among others, the opening of the doors of learning; the fighting of crime and corruption; and the building of a strong economy that is able to create decent and quality job opportunities for our people.

We are still faced with the elementary obligation of providing basic services to our people, which include houses. We are at work realising our resolve in ensuring that the people of Limpopo are, in the main, beneficiaries of economic activities that are taking place in the province, given the large mineral deposits in our region. We have drawn up the Limpopo Employment, Growth and Development Plan, which is an economic document that is aimed at growing the path of our economy.

We have identified job creation as a sustainable new method of fighting poverty and underdevelopment among our communities. We are hard at work building an economy that is able to grow while it is creating vibrant job opportunities for our people. Through the Limpopo Employment, Growth and Development Plan we are working towards ensuring that the mining activities in the province that bring in millions also benefit the local communities. We have managed to deliver a crime-free and incident-free World Cup tournament in our province.

Once more Limpopo has emerged as the leading province with regard to the crime rate. We are deepening our interaction with communities around enforcement in order to ensure that crime is exposed and fought from all corners. Our low crime rate has been attested to by the latest crime statistics that show our province has one of the lowest crime rates.

The process of expediting service delivery to the people continues to make a meaningful difference in the lives of the majority, especially in the rural areas of the province. Although our province is ranked the lowest when it comes to access to universal basic services, we have managed to expand the provision of basic services in the form of water, sanitation, and electricity to many people. We have continued to provide people with houses and other infrastructure development programmes.

We have declared this year the year of intensive learning in the province as we continue to regard education as a strategic bedrock for a sustainable and better tomorrow. The number of children with access to basic education has exceeded the anticipated target. The school nutrition programme assists in the realisation of our resolve to fight hunger at schools, enabling the environment to be conducive for learning to take place. Through working closely with communities we have been able to register great strides in the war against crime and corruption.

This brief account of Limpopo should serve as a motivation that we are on the correct path in building a prosperous society which is able and committed to the overriding cause of creating a better life for all. Thank you.

The HOUSE CHAIRPERSON (Mr R J Tau): Hon Chair, may I start by saying that it is interesting to have noted that during the debate on the address by the President, a very interesting observation was made that a member and leader of Cope took an opportunity to quote Thabo Mofutsanyana. I found it interesting that Cope could quote, in actual fact, one of the greatest communists that this country has ever produced. Perhaps it is a lesson that, as we move forward, some of these liberalist approaches that they have would definitely not be of comfort to a great communist such as Comrade Thabo Mofutsanyana. [Applause.]

Let me also take this opportunity to pay tribute to our grandmother, Gxowa, a revolutionary, an organiser, a visionary, who joined the ANC in the early years of her life. She participated in and led the programmes leading up to the Women’s March and, subsequent to that, the adoption of the Freedom Charter. It is indeed fitting that the National Council of Provinces held its programme of Taking Parliament to the People here. This exercise is a fulfilment of the vision of the Freedom Charter that the likes of Mrs Gxowa fought for.

Accordingly, the strategic objective of the ANC, which is the creation of a nonracist, nonsexist and democratic South Africa - that particular characterisation of this strategic objective - continues to teach us that, while people say that in 16 years the ANC has done nothing, fundamentally ours has been to build a nation; fundamentally ours has been to build a society that has respect for women and a society that has an understanding that in actual fact we have been divided for many decades by the very same former National Party that was mentioned by a member here earlier.

Members will remember that as the ANC we resolved that the Fourth Parliament needed to be characterised differently and that the characterisation of this particular Fourth Parliament needed to be as an activist Parliament. It needs to be a Parliament that is rooted amongst the people. It needs to be a Parliament that responds to the needs and the interests of the people. It needs to be a Parliament that must strengthen its oversight capacity in order to be able to hold the executive accountable. It is that kind of Parliament that we have here today - a Parliament that is engaging with the people; a Parliament that is engaging with the executive; and a Parliament which says: “Yes, together with our people we will march forward.”

The National Council of Provinces plays a very central role in bringing the three spheres of government together. It remains the only democratic institution in the country that is constitutionally designed to bring all three spheres of government together under one roof. Through programmes such as Taking Parliament to the People, the NCOP gets an opportunity to bring together all our people under one roof. This would include, amongst others, the community, the Cabinet, the President, the MECs, mayors and everybody who is involved in the process of transforming our country for the betterment of the lives of our people. This is the reason why we need to emphasise our commitment in ensuring that at the end of each programme the lives of our people become much better.

In fighting poverty we take note of the issues raised during the visits and public hearings, including that there are fundamental challenges in supporting small business initiatives. The Freedom Charter clearly states: “The people shall share in the country’s wealth.”

While our organisation, the ANC, has made substantial progress in realising this goal, we acknowledge that we have not yet achieved true economic transformation, which includes fundamentally changing the structure of the South African economy and the distribution of wealth and income in our society.

The National Council of Provinces commits to monitor the promises made by our councillors, without specifically mentioning names, particularly with regard to a commitment that was made yesterday that the district has a budget set aside to assist small and emerging businesses to buy stock or embark on training and development. It would be quite an interesting aspect for us as the NCOP with our committees to do follow-ups into understand exactly what our commitment is and what it is that is happening on the ground.

We are told a lot about corruption. Yes, of course, the way that corruption is put to us and to society sounds like a new thing. As the ANC, we have taken it upon ourselves to ensure that we put systems in place that will combat corruption. We have put systems in place in government that identify and expose corruption. It is no coincidence that so many cases of corruption have been reported, so many cases of corruption have been captured. In actual fact, it is this organisation, the ANC, that went to Polokwane; that went to Durban and re-emphasised the point of the transformation of the judiciary by strengthening the instruments that are put in place in order to fight corruption. Therefore, as the ANC, we cannot be taught how to fight corruption. It is our resolve to fight corruption. [Applause.] Interestingly as well, it is quite hypocritical the way this whole issue of corruption is put to society, especially by the DA. The manner in which they put the matter of corruption to society is by saying that the ANC is corrupt, but they are not talking about the white-collar crime that is happening; they are not talking about the corruption that is happening in the private sector. Let me give an example of something that the DA never said anything …

… ka sone, bagaetsho. A le a itse gore go na le dilo tse ba di bitsang di “cartel”. Ke ditlamo tse di kopanang, mme di rerisane go baya tlhwatlhwa e e amang batho ba ba kobo di khutshwane; batho ba ba sokolang; batho ba ba tlhokang thuso mme DA ga e bue ka batho bao. Gona jaanong go ne go na le “cartel” e e bonweng molato mo borothong. Bana ba tlhoka borotho kwa sekolong. (Translation of Setswana paragraph follows.)

[… about. Did you know about a thing called a cartel? It is a consortium of independent organisations formed to limit competition by controlling the price, production and distribution of a product or service that affects poor people, struggling people, people who need help - and the DA does not talk about those people. Now there is a cartel that was found guilty of price fixing on bread. Children need bread for school.]

They are hypocrites nevertheless. Thank you very much, Chair. [Time expired.] [Applause.] The PREMIER OF THE FREE STATE (Mr E S Magashule): Hon Chair of the NCOP, hon President of the Republic of South Africa, hon premiers, MECs, members of the House, traditional leadership, SA Local Government Association, Salga, leadership, our hon councillors, the hosting mayor, Dr Mzangwa, Mmathokwana Mopedi and the community, the NCOP is doing such a good job. The Taking Parliament to the People programme, I think, must be commended.

Thank you to the hardworking members of the NCOP for coming to the Free State. I’m sure, moving forward, we can draw strength from whatever you have said. Let me remind South Africans – and I agree with the President - that South Africa is a unitary country and, indeed, there are different challenges in different provinces. The Free State is not like the Eastern Cape, KwaZulu-Natal or Limpopo.

In the Eastern Cape there are big challenges. I think the history of where we come from in terms of the Bantustans or homelands - for example, the Ciskei and the Transkei - and the poverty created in that province and many other provinces must be taken seriously. Therefore we need the support of the people of South Africa and the national government to work together with all the municipalities, local governments and provincial governments.

Let me take the members back to the past. In the past, …

… re ne re sa dumellwa ho vouta rona re le batho ba batsho. Re ne re lahletswe dibantustaneng Kapa Botjhabela kwana Transkei le Ciskei. Re lahletswe Bophuthatswana, KwaZulu-Natala le Venda. Ha re hopoleng nalane eo. Ha re hopoleng hore dipetlele tsa rona kajeno lena ke tsa batho kaofela, ha pele ho ne ho na le tsa makgowa le tsa batho ba batsho.

Ha re hopoleng moo re tswang teng hore dimaene le moruo wa naha, ditsela le marokgo a Afrika Borwa a ahilwe ke rona batho ba batsho ba dulang mona Afrika Borwa empa mofufutso oo ha o se o qhalehile, ha ho letho leo re ileng ra le etsa.

Ditoropo tsa rona di ne di na le matlo, tsamaiso ya dikgwere-kgwere, ditsela tsa sekontiri, motlakase le tsohle. Ha re hopoleng hore rona batho ba batsho re ne re sa kgone ho dula moo re batlang mme re sa kgone ho tsamaya moo re batlang. Ha ke le nke hanyane ha e le mona le tswa nalaneng eo, ke le bontshe ho ya pele hore re entse eng rona re le mmuso wa mokgatlo wa ANC diprovenseng le tlase ho bomasepala. Ha re hopoleng moo re tswang teng hore batho ba batsho ba ne ba sa fumane tjhelete ya penshene e lekanang le ya makgowa.

Ha re hopoleng moo re tswang teng hore ka selemo sa 1953 Ngaka Verwoerd o ile a fetisa molao wa Thuto ya Kgethollo. Ha thwe bana ba rona ba batho ba batsho ba tla rwalla dipatsi le ho kga metsi, mme ba se dumellwe ho etsa Mmetse le Thuto ya Mahlale. Jwale, ha re bua ka dintho tseo kaofela ha tsona, ha re hopoleng moo re tswang teng hore re tle re kgone ho utlwisisa moo re batlang ho ya teng re le mokgatlo wa ANC mmoho le setjhaba sa Afrika Borwa.

Ha re hopoleng moo re tswang teng hobane Palamente le Mopresidente ba ne a sa kgone ho fihla setjhabeng empa kajeno lena ba fihlile. Jwale, ha re bueng ka seo re batlang ho se etsa hobane ka selemo sa 1994 ha setjhaba se qeta ho voutela mokgatlo wa ANC, lona batho ba ka hara Ntlo ena le ne le qala ho vouta. Ka mora dilemo tse ka bang makgolo-kgolo mmuso wa kgethollo le kgatello o re tshwere, la qala ho vouta.

Jwale, ha le voutile ka selemo sa 1994, le tla kgona ho utlwisisa hore ba neng ba hloka metsi e ne e le dimilione-milione tsa batho. Ba neng ba hloka dibukana tsa boitsebiso e ne e le dimilione-milione tsa batho. Ba neng ba sa kgone ho vouta e ne e le rona. E ne e le rona ba neng ba sa dumellwa ho dula le ho kena dikolo moo re batlang teng mme re etse Mmetse. Nna le wena re ne re etsa “Momo le Semboho ba mema Didimaho”. Le lebetse ka pele jwang? [Mahofi.] Le lebala ka pele jwang? Mopresidente o re kopile hore re etse dintho ka tsela e fapaneng le ya pele, Modulasetulo. Taba ya ho tlisa Palamente bathong … (Translation of Sesotho paragraphs follows.)

[… we were not allowed to vote, as black people. We were thrown into Bantustans in the Eastern Cape – the Transkei and the Ciskei. We were thrown into Bophuthatswana, KwaZulu-Natal and Venda. Let us remember that part of history. Let us not forget that our hospitals today are for everyone, whereas before there were separate hospitals for white and black people.

Let us remember where we come from, that mines, the economy of the country, roads and bridges were built by us, black people, who live here in South Africa. But when all that sweat had gone to waste, nothing was done.

Our towns had houses, sanitation, tarred roads, electricity and everything. Let us remember that as black people we could not stay wherever we wanted to. Now that you’ve remembered all that history, let me continue to show you what the ANC government has done in the provinces and even in the municipalities. Let us remember that black people did not receive pension money equal to that of white people.

Let us remember that in 1953 Dr Verwoerd passed the apartheid education law. It was said that our black children would fetch wood and water, and they were not allowed to do maths and science. Now, let us talk about all those things. Let us remember where we come from so that we can understand where we want to go as the ANC, together with the nation of South Africa.

Let us remember where we come from because Parliament and the President could not reach the nation but today he is here. Now, let us talk about what we want to do because in 1994 when the nation voted for the ANC you people in this House were also voting for the first time. After years and years of the government of discrimination and oppression, you could now vote.

Now that you voted in 1994, you will understand that there were millions and millions of people who needed water. A million others needed identity documents. We were the ones who could not vote. We were the ones who were not allowed to live and attend schools where we wanted to and do maths. You and I used to do noun groups by reciting them according to their prefixes. How can you forget so quickly? [Applause.] How can you forget so quickly? The President asked us to do things in a different way to before, Chairperson. The issue of bringing Parliament to the people …]

… means we are doing things differently because, for the first time since 1994, the people of South Africa can interact with the Ministers and Members of Parliament. What a good thing!

In the Free State, President, our manifesto said we must create decent jobs. Within four months during our administration, we ensured that 1 069 temporary teachers became permanent. Today they are permanent. [Applause.] When we took over, you said we must create decent jobs. In our hospitals and government buildings where we had security companies, we have made sure that those security officers and some of the police reservists are well trained. We have terminated contracts of security companies because those people must be permanent so that they can have decent jobs. [Applause.] In terms of education, I have documents which I will give to the Chair of the NCOP and the President. These documents reflect that 3 099 students have been taken to schools and universities through our bursaries as a provincial government. [Applause.] Since Motheo District Municipality is the biggest, it has 1 228 learners; Thabo Mofutsanyana has 563; Lejweleputswa has 631; Fezile Dabi has 410; and the Xhariep District Municipality has 208.

I have just checked how many people from Qwaqwa are our bursary holders. In terms of this report - their names, identity documents and telephone numbers are here – 239 people from Phuthaditjhaba, Maluti-A-Phofung Local Municipality, have bursaries from the provincial government. [Applause.] I also tried to check whether our bursaries are only received by black people. No, that is not the case because in 1955 in die Vryheidsmanifes het ons gesê dat Suid-Afrika aan almal behoort – wit en swart [… in the Freedom Charter we stated that South Africa belongs to everyone – white and black].

Lengolong la tokoloho ka 1955 re ile ra re Afrika Borwa ke ya rona kaofela. Ha ke bala mabitso hona jwale tokomaneng ena ke fumana boVan Zyl, Naude, Botes, Blignaut, Viljoen, Oorkamp, Koornhof le Sinclair. Ba bangata feela ho etsa bonnete ba hore ha re aha Afrika Borwa ho ya pele, le ka 1996 … (Translation of Sesotho paragraph follows.)

[In the 1955 Freedom Charter we said that South Africa belongs to all those who live in it. When I read out the names now in this document I find people such as Van Zyl, Naude, Botes, Blignaut, Viljoen, Oorkamp, Koornhof and Sinclair. There are so many of them because we wanted to make sure that when we built South Africa going forward, even in 1996 …]

… ons het ook in die Grondwet van Suid-Afrika gesê dat Suid-Afrika aan almal behoort - wit en swart. [… we also stated in the Constitution of South Africa that South Africa belongs to everyone – white and black.]

Ke kahoo re tla yang pele re tsamaya mmoho le setjhaba sa Afrika Borwa. Ke kahoo selemong sena se fetileng sa 2010 re butseng dikolo tse 12 tse ntjha tseo bana ba rona ba ka ithutang ho tsona. Ke a kgolwa Ditho tsa rona di di bone. Mona Qwaqwa feela … (Translation of Sesotho paragraph follows.)

[That is why we will move forward together as the nation of South Africa. That is why last year, 2010, we opened 12 new schools, schools where our children learn. I’m sure that our members saw them. Here in Qwaqwa …]

… we have 20 students’ who are studying medicine - 20, at different universities. [Applause.] In the whole of the Free State, we have given 108 medical students bursaries, and we are going to give them bursaries for the next six years. We will do this because we have identified and we know that there are no doctors. You can’t blame us for not having doctors as a province. You must blame apartheid because it denied black people the opportunity to study mathematics and science. Therefore when you want to blame us you must understand where we come from.

Consciously and deliberately, we are investing in human resource development as a country. We have built farm schools. You can go to Manthatisi here in Qwaqwa and you will find rural kids at that school. We have given, as I have said, bursaries to blacks and whites.

In terms of health, no one can deny that we have challenges. People must not make as if we are denying that there are challenges in health. However, I have said you must look at our history; you must flash back. In the past these hospitals were only meant for white people and there were very few. Today we have free medical access, and many of our people have access to these facilities.

Yes, there might not be medicine available tomorrow. The reason for that is that the numbers have increased and these numbers were denied this access in the past. So understand where we come from so that you will understand how we must build the future as we move forward.

People must understand that in the past they could criticise us. However, let the truth be told. You can go to our various municipalities where you want us to appoint people on merit. We agree that that is what we should do because the Freedom Charter demands that we do that. However, go there and see how many white people were employed there in the past without qualifications. [Applause.] The truth must be told. We are compiling that report and we know.

That is why in our municipalities – you can go to Moqhaka Local Municipality, Ngwathe Local Municipality and various provincial departments – we have employed black and white chartered accountants. There are many black chartered accountants who are prepared to come and work for government. I think we must congratulate them.

Moving forward, and if we work together, we can do more. We can tell you about qualifications because when something is black, people criticise it. I think the qualifications, competency and merit of our heads of department must be known.

We have revitalised and are still busy revitalising our townships. That is why in the next financial year we have decided to put aside R300 million just for township roads so that we move forward as a province. Moving forward, in terms of local government, I think we agree that there are challenges. I was saying to the people here that to be a councillor is not like being a Member of Parliament or a premier because a councillor is there on the ground. When people want water, water is there on the ground. When people want better services, these services are there on the ground. If people are not paying for their services they can’t get better services because the province collects money and sends it to the local government. That is why we need to work together.

I agree with the President and everybody that there are many good councillors. There might be a few …

… hobane ho thwe tapole e le nngwe e bodisa tse ngata, empa re se ke ra akaretsa. Re etse bonnete ba hore re sebetsa mmoho. Ke kahoo ke batlang hore … [… because it is said that one potato can spoil the whole bag, but we must not generalise. We must make sure that we work together. That is why I want …]

Hon Watson says, “The government has failed dismally.”

Ho tjho ntate Watson. Bomasepala ba rona ha ba a atleha. Empa bomasepala ba rona ha ba tshwane le ba nako e fetileng bao e neng e le ba makgowa feela. Ba ne ba isa ditshebeletso ho batho ba mmalwa feela. Metseng ya rona le kajeno re ntse re hloka mabone. Dintho tseo kaofela ke tseo re tlamehileng re di lwantshe ho ya pele.

Ke batla hore ka mantswe ana, re utlwile dillo tsa baahi mme re se re nkile dikgato. Re se re dumellane le ba tsa bophelo bo botle hore re tla aha ditliniki tsane tse Bolata re sebedisana mmoho le setjhaba. E re ke re ho Ditho kaofela … (Translation of Sesotho paragraphs follows.)

[So says hon Watson. Our municipalities did not succeed. But our municipalities are not the same as the previous ones who were serving whites only. They provided services only to the few. Even today in our communities we still need electricity. We must fight all of those things in order to move forward.

In conclusion, I would like to say that we heard the cries of the citizens and so we took a step. We made an agreement with the Department of Health that we will build those clinics in Bolata, working together with the community. Allow me to say to all the members …]

… Geseënde Kersfees en ’n voorspoedige Nuwejaar. Ke a leboha. [… Merry Christmas and a prosperous New Year. Thank you.][Time expired.][Applause.]]

The PRESIDENT OF THE REPUBLIC: Thank you!

The CHAIRPERSON OF THE NCOP: Please sit down and listen! The President is responding. The PRESIDENT OF THE REPUBLIC: Thank you, Chairperson of the NCOP, once again for the opportunity to say something in response to the debate. Thank you very much for a very good debate by the members of the NCOP, the premiers, and members who represented their own premiers. I think, as usual, it has been a very lively debate. Of course, at times people miss the opportunity by focusing in a different way in the debate on the matters that affect the citizens of this country.

I am referring to a statement that was made by an hon member here, and the statement was that the government had failed dismally. I don’t know. Unless I don’t understand English, I don’t know what that means. It is an exaggeration. It is actually aimed at making propaganda, because it is not true. It cannot be true. Government is functioning very well. There are challenges, and I think the statement should capture the fact that there are challenges. I have always said to the opposition that they should be an opposition in a constructive fashion, that they should help the government to do the work in the country, and that they should identify the specific areas they believe need to be identified as weaknesses.

These sweeping statements are very nice to make. You can make them at any time and say that generally people are corrupt and that generally the government has failed and is dysfunctional. I mean, it says nothing. This is what educated people talk about, “full of sound and fury, signifying nothing”. That is because it says nothing. [Applause.] I think the debate must help us to understand what the shortcomings are, so that we can deal with them. Of course, that is how the debate becomes lively.

I must also come back to the point of corruption, because I think, again, the approach to corruption at times does not help us. For example, before 1994 there was no talk of corruption, and corruption was something that touched the core of government then. In fact, if you talked about corruption before 1994, you were likely to be the one who went to prison. [Applause.] There was a lid on it; nobody could talk about it. What this government did when we came into power – because we knew this was a problem – was to say that we would fight corruption, and we would expose corruption. We took the lid away, and the struggle against corruption only started after 1994 in this country, not before. It is this government that has said that it will fight corruption until it is eradicated, and we are fighting it. People have lost jobs, some have gone to prison, and some have had to pay back the money. It is important to acknowledge that, because if you just keep on saying that this government is corrupt, without recognising that, you then ensure that we don’t listen very carefully to what you say.

Thank you, premiers, for the contribution you have made. I think generally you have indicated that provinces are working and there are programmes that you enumerated here. That is pleasing. Premier Ace, you said a number of things, but one of the things that I believe we need to take lessons from is how you have solved the problem of part-time teachers. I think we must all learn from what you have done. I just don’t know what the formula is. [Applause.] It is one thing, among the many things you have said, that we must take away.

Hon members, I will not refer to each and every person who spoke here, because that could take long. I am mindful of the fact that the presiding officers said that we should limit the time because people have to travel. Therefore, I will just say a few things which I believe are important.

We have made the call that we must work differently. We must do things differently, and it is important that we adhere to that. Governments historically do things in a particular way, and this is what I think we must change. Usually, the wheels of government turn very slowly. It walks very slowly, and we are saying that it must change. There is something in government that just makes people do things very slowly. I am saying that it must change, because it causes unnecessary blockages and delays and, therefore, it slows down delivery. It creates an impression about government. What you should realise is that when a person has been a public servant in the corridors of the government buildings, when they walk, they walk very slowly to take a document from one point to another. The same person, if he is employed by the private sector, will walk very fast in the corridors of the private sector buildings. There is something wrong that we need to correct, and I think we have an opportunity to correct it. We must do things differently. I agree with those who have made those points. I think the majority of the speakers have said that we should work as one government. That is true. Let us work as one government. We are not many governments in one country.

We can’t make people suffer because they belong to the government of either the Free State or Gauteng, as if they are not our people. I think the manner in which, politically, we described the situation of the three spheres of government could not explain it appropriately. Therefore, people believed they lived in other countries. It is one country.

I am also aware of the challenges that we face. At times we make an unfair comparison, because the government in the past – the one I say we said nothing about – governed a minority of people in this country. Other people were not party to it. They were outside. They were given their places, such as homelands. So, you had a very small government in terms of how modern governments are structured. We now have a government that governs the entire population of this country in the same way. It is a big challenge, with backlogs that are critical in every respect. I think we should also appreciate that as we move forward.

We have said, in this administration, that there are areas we need to focus on, and I want to touch on these areas, because I think it is important to have the same frame of mind. We have five priorities, and all of them are meant to address the challenges of our country. They affect all citizens. Education is one, and we have done a lot of work in planning how to tackle education.

There is a 10-point plan for us to tackle education. Because education is so important, it is one of the portfolios that we separated into two – Basic Education and Higher Education and Training. The reason for this was that the bigger department tended to make all of us focus on higher education in the main. We did not focus on basic education, and yet anything that has life has to be attended to at the beginning – the foundation.

We therefore ended up with the problem, for example, of continuous bad results for matric. We thought that it was important to focus on this, so that we are able to produce young people who will do things differently in education, because even with those who pass, a good percentage do not qualify for tertiary education. They pass without exemption. We need to remedy that.

This is a matter that all of us need to appreciate. If we talk about nation- building, education is one of the critical building blocks. Therefore, it should be government and the nation as a whole that affect, in the main, those who deal with education. There must be that understanding that if you don’t pay attention to education, you are actually failing to pay attention to the development of the country. With education we can solve the poverty problem in all its facets. So, we have identified it as a critical point. I am happy now because it’s not just a dream.

I have just come from South Korea, a country that was poverty-stricken and living on donations. What it did was focus on education, and it has defeated poverty. It is now a donor country, helping others who are still trapped in poverty. They have many universities - not a few, many. So, building universities is not a waste; it is in fact the creation of a foundation for education. I am saying this fully aware that two of our provinces do not have even a single university. This is a terrible statement against us. We must correct that.

We also put health as another high-level priority. Again, a lot of work has been done to plan how to turn health around, because any nation needs health. If you visit countries that have succeeded in delivering on health, you will realise they have developed. To us it is even more important because we are dealing with a huge population that was disadvantaged for decades, if not centuries. So, it is one of the priorities.

We also prioritised rural development. I was very happy that many of the provinces said that they have programmes that deal with rural development. Fortunately, the Minister dealing with this is doing a lot of work to try and do things differently at that level. I believe that very soon we will hear what is happening.

We also said that, as a priority, we are going to fight crime. I think that there is evidence that we are fighting crime very seriously.

What we then said was that we must create jobs. That is a priority that I believe we need to put all our efforts into. I think we have done a lot of work on others. The creation of jobs we need to work together on, almost as if it’s the only priority. If we solve the question of jobs we almost halve the problems. Everybody must be employed. That directly addresses the poverty.

We need to be innovative, so that we don’t say other people can’t work because they don’t have skills, unless you qualify the types of skills that you are talking about. Everyone can work; let us create the jobs that relate to what those people can do. This is an issue that I believe, from next year, must be the critical thing for all of us - in all departments, in the provinces, as well as in the municipalities. We must determine what jobs we can create.

I was speaking to someone just yesterday, to those who can count money, big money. I can only count up to thousands. Some can count up to millions; some tell me about Bs; some tell me about Ts. I can’t count that much. I have never seen a trillion in my life, or even a billion. [Applause.] I was saying to them, because we are told that the rand is too strong and there is money coming here, let us change that disadvantage into an advantage. Let us put that money where the challenges are, so that by the time the problems go away the money has been invested. I think we can do more if we work together.

Chairperson, I am sure that we have taken time to debate the input, and I think I can’t, once again, introduce the debate. I think that we have debated enough. Mine is to thank you and thank the hon members for debating my input in the manner in which they have done. I am sure that this will go a long way as regards the debate today, but you have been here interacting with the community. I am sure that the community is very pleased to see Parliament here, and to be able to interact with it. You must continue to do so; it is a good thing. [Applause.]

Ke a leboga, bagaetsho. [Thank you.]

Challenges are big; we need to stand together, both men and women. Not just men and women in the general sense.

Bomme ba nnete, a ba sware thipa ka bogaleng; le bontate ba nnete, dikwankwetla, bao ba nago le maatla, bao ba kgonago go šoma ka maatla. [I mean real women who can deal with challenges and overcome them; real men who are strong and powerful; men who are committed to their work.]

We still have a challenge to fulfil or to achieve what this province said to us in 1912, what we must do to change the quality of the lives of our people. We need to work harder, all of us. If we work together, we certainly can do more. [Applause.] Thank you.

Ke a leboga. [Thank you.]

Debate concluded.

MODULASETULO WA NCOP: A re tšeeng madulo a rena. Le seke la tšwa, dulang fase, ga re a fetša. Ke a tseba gore le lapile e bile le mmerekong. Ke tlo dira ka mokgwa wo, ke tla dira ditsebišo.

Ga bjale, ge ke fetša go tswalela Ngwako wo, le dule fase le seke la tšhikinyega. Mopresidente wa naga, Tonakgolo le nna, re tla ya mola. Ka Labone ge re boledišana le bao ba sa itekanelago, ke ile ka kgopela Tonakgolo gore re ka dira gore re ba thušenyana ka se sengwe. Ba kgonne go re humanela ditulo tša mabili tše 20. [Legoswi.]

Re tla fa ba babedi fela gore re seketše nako, tše dingwe Mme Ntombela o tla šala a di fa ba bangwe. Go na le ba babedi gona bjale ka mo Ngwakong, tše dingwe ba tla ba fa ge ba šetše ba sepela. Taba ya bobedi, bao ba ba namelago dinamelwa tša bona kua O R Tambo, ke kgopela gore le seke la ya dijong tša mosegare. Dinamelwa tša lena di le emetše mola diofising tša selete. Ge le tloga fa, itlhaganeleng gona gore di seke tša le tlogela, le kgone go humana difofane tša lena kua O R Tambo. Re tla kgopela bjalo. Bao ba ikotlellago ba ka ya dijong tša mosegare.

Ke rile le dule fase. Ge re fetša mo le Mopresidente, a šetše a tšwile, kamoka ga lena le ka emelela la tšwa. Ga bjale dulang fase hle go fihla ge Ngwako o fetša.

Ke tla kgopela Mopresidente le Tonakgolo gore ba ye go phethagatša mošomo.

Bašomedi ba peleng, Maluti Bus Service, ba tla hwetša tšheke ya dimilione tše R11 go tšwa go Mopresidente. Re a ba lebogiša. Re leboga ka maatla. (Translation of Sepedi speech follows.)

[The CHAIRPERSON OF THE NCOP: Let us all take our seats. Please do not go out because we are not done yet. I know that you have been working and as a result you are tired.

I have announcements to make and I therefore request that you remain seated when the House adjourns. The President of the Republic, the Minister and I will go to that side. When we were talking to the people who are physically challenged on Thursday I suggested to the Minister that we do something to help them. There are 20 wheelchairs here that are to be given to them. [Applause.]

We will give only two wheelchairs to two people who are now present in the House. Hon Ntombela will issue the rest of the wheelchairs to the others when they leave.

People who are to catch a flight at O R Tambo International Airport will have to miss their lunch because their transport is waiting for them at the district offices. Please make sure you don’t miss the transport because that will lead to you missing your flight as well. Only those people who are using their own transport can remain for lunch.

Please remain seated. When the House adjourns we will allow the President to leave first and then the rest of the members will be allowed to leave.

I will request the President and the Minister to fulfil the task.

The previous service provider, Maluti Bus Services, will receive a cheque of R11 million from the President. We congratulate them. Thank you very much.]

The Council adjourned at 13:44. ____ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

                     WEDNESDAY, 17 NOVEMBER 2010

ANNOUNCEMENTS

National Council of Provinces

The Chairperson

1. Message from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council

(1)    Bill passed by National Assembly and transmitted for concurrence
     on 17 November 2010:


    (a)      Adjustments Appropriation Bill [B 34 – 2010] (National
         Assembly – sec 77).


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

COMMITTEE REPORTS

National Assembly and National Council of Provinces

Report of the Joint Committee on Ethics and Members’ Interests on the Auditor-General’s report on the alleged non-disclosure of members’ interests:

The Joint Committee on Ethics and Members’ Interests, co-chaired by Mr L T Landers and Mr B L Mashile, met on 19 August 2010 to consider the report of the Auditor-General on the alleged non-disclosure of interests by members of Parliament.

Attendance National Assembly Kohler-Barnard, D Luyenge, Z Mangena, M S Ngcobo, B T Nhlengethwa, D G Van der Merwe, J H

National Council of Provinces Mabe, B P Magadla, N W Moshodi, M L Rantho, D Z

Apologies Bekker, J M Dreyer, A Radebe, B A

The Auditor-General’s annual audit of Parliament for 2009-10 included a full audit of the 2009 Register of Members’ Interests, focusing on the accuracy of disclosures by members of Parliament in respect of their interests in companies or close corporations. Members’ disclosure of interests in 2009 was tested against the Company and Intellectual Property Rights Organisation (Cipro) database.

Upon examining the Auditor-General’s findings, the Registrar determined that 31 members had not complied with the requirements of the Code of Conduct. After consultation with the co-chairpersons, the procedure used for the investigation of complaints in respect of non-disclosures was followed. This approach is consistent with previous practice when the Auditor-General found that members had not fully disclosed their interests.

On 20 July 2010, correspondence was sent to each member who had been identified with a request that they respond to the allegation that their disclosures for 2009 were not complete. Each member responded to the allegation, the details of which are set out below.

After consideration of the explanations received, the Committee agreed that in most cases the companies in question are dormant or never operated. Some members indicated that their omission had been an oversight. They had previously disclosed the interests and therefore there was no intent wilfully to mislead the Committee.

In its consideration of the matter, the Committee also noted that the disclosures that had been audited were the first of the 4th Parliament and the majority of members were newly elected.

The Committee further noted that in most instances the companies are dormant and members had not received any benefit from the company or companies concerned. The Committee acknowledged that it has the mandate to assist members with compliance with the requirements of the Code of Conduct and that there should be ongoing briefings to ensure that members are properly informed.

The Committee reiterated, however, that the onus for full disclosure rests upon members. It agreed that members of Parliament are expected to comply fully with the requirements of the Code.

All members, with the exception of Mr Van der Merwe, agreed that the non- disclosure of interests is a breach of the Code of Conduct, even if the companies are dormant or if the non-disclosure had been an omission.

The Committee therefore recommends the following penalties. All members who have been found guilty of breaching the Code must -

(a) attend a compulsory briefing on the requirements of the Code of Conduct; (b) be informed in writing that the non-disclosure of interests is considered seriously; (c) correct their existing records in their 2010 disclosure; and (d) issued a warning that any future non-disclosure could result in the maximum penalty.

Mr Van der Merwe was of the view that as there had been no wilful breach, members should only be required to correct their disclosures.

The Committee is aware that in some cases members did not disclose more than one company and though it may appear that the Committee has been lenient in the penalty imposed, it wanted to be consistent in its approach to all members and issue a uniform penalty to all who have not disclosed.

1. BHENGU NR Company information 62 ARUBA, registration 1998/041240/23,

Member’s response The member tried to contact the other directors, but they too indicated that they have no knowledge of this company. The company has had no business dealings. The member indicated that she is in the process of checking with Cipro whether the registration was wrongful. To date the member has not been able to provide further information. She is in the process of resigning from the company.

Finding Breach - cited as a member by Cipro. The member could not provide additional information to show that the company had been registered without her authorisation.

1. BLAAI, BC Company information SIYATHEMBANA TRADING 166, 2008/008778/07,

Member’s response The member responded that the exclusion had been an omission and that no benefits had been received. The member apologised for the oversight. Finding Breach - the member conceded that she had not disclosed.

1. BOROTO, M G Company information THEMBISILE TRANSPORT SERVICES, 2004/051764/23,

Member’s response The company never operated. The member was not aware that the company was registered. However, the member apologised for the non-disclosure.

Finding Breach - the member had not complied with the requirements of the Code of Conduct for members of Parliament.

1. CHAUKE, H P Company information IKAMVA LETHU MKHONTO INVESTMENTS, 2008/012108/07, PEOYARONA HOLDINGS, 2008/024876/07, CAMEL ROCK TRADING 443, 2008/080286/23, IMVUSA TRADING 2155, 2009/025821/23, GOT THE EDGE 2, 2002/008570/23, SIZISA UKHANYO TRADING, 2004/083348/23, ABAPHUMEMELE, 2005/007898/23,

Member’s response The member indicated that the companies are dormant and he had received no benefit from them. He said that the non-disclosure was an omission.

Finding Breach - the member conceded that he had not disclosed. The committee noted that seven companies had not been disclosed.

1. DUMA, N M Company information SEKADUMA CONSTRUCTION, 2004/041736/23,

Member’s response The company is dormant. It was an omission, as it had been disclosed previously.

Finding Breach – the member conceded that he had not disclosed.

1. GOLOLO, C L Company information KGA KUNA MATATA TRADING, 2008/009917/23 SUNSHINE DUNES TRADING, 2003/003584/23, SAMKEDZE TRADING ENTERPRISE, 2008/155839/23

Member’s response The companies were dormant and never operated. No benefits were received. The member apologised for the omission.

Finding Breach – the member conceded that he had not disclosed.

1. HOLOMISA, S P Company information KWA TSHEZI LODGE, 2000/028550/07,

Member’s response This company name has changed and member was informed that he was no longer a director. Following up to see why this was not affected.

Finding Breach - it is the member’s responsibility to ensure the correctness of his disclosure.

1. KOMPHELA, B M Company information MATSAPA TRADING 618, 2008/166309/23,

Member’s response The member said that he had updated his disclosure on 5 September 2008. However, the information had not been included in the 2009 disclosure.

Finding Breach – the member did not disclose.

1. KOPANE, S P Company information DELA CASA TRADING 550, 2008/014235/23, KHATHOLOHA BED AND BREAKFAST, 2008/019104/23,

Member’s response The companies are dormant and never operated.

Finding Breach – the member did not disclose.

1. KRUMBOCK, G R Company information RUPERSASH SURVEYS, 1997/041207/23,

Member’s response The company is dormant. This was an oversight, as the company had been disclosed in previous years.

Finding Breach – the member did not disclose.

1. LUCAS, E J Company information JABULANI SPARES, 1992/015723/23, JIL BUSINESS CONSULTANCIES, 1998/024076/23, VUSANI MINING RESOURCES, 2005/099750/23, CORPCLO 2210, 2004/044237/23, INKULULEKO INVESTMENTS, 1999/019975/07, INKULULEKO LEISURES, 2000/016649/07, INKULULEKO OFFICE AUTOMATION, 2000/009478/07, UNGOYE INVESTMENTS, 2005/004425/07, LANDA PETROLEUM, 2008/005772/07,

Member’s response The member apologised for the omission. He said that he was rationalising his representations to the companies at present. The Committee noted that nine companies had not been disclosed.

Finding Breach – the member did not disclose.

1. LUTHULI, A M Company information ALBERLITO HOSPITAL PROPERTIES, 2004/023093/07, ALBERLITO HOSPITAL, 2006/005938/07,

Member’s response The member, as alternate director, received no remuneration. She has resigned and the resignation has been accepted.

Finding Breach – the member did not disclose.

1. MABIJA, L Company information TATAMASASE TRADING CENTRE, 2008/025680/07, Member’s response The Cipro document indicated that the member was appointed on 20 October 2010, i.e. after the date of disclosure.

Finding No breach - the member was appointed on 20 October 2009, after the date of disclosure.

1. MGABADELI, H C Company information VPZ CONSULTING, 2004/034742/23,

Member’s response The company is dormant and never operated.

Finding Breach – the member did not disclose.

1. MNGUNI, P B Company information ZIYAWA BUSINESS ENTERPRISE, 2003/006038/23,

Member’s response The company never operated and the member has no contact with other directors.

Finding Breach – the member did not disclose.

1. MOKGORO, G G Company information MAJESTIC SILVER TRADING 40, 2005/003527/07,

Member’s response The member represents the interests of the Kuruman community in this company and does not receive any remuneration.

Finding Breach – the member did not disclose.

1. MOSS, L N Company information SIYATHEMBANI PROPERTY AND EQUITY INVESTMENTS, 2008/002784/07,

Member’s response At the time of disclosure, the member was not aware that the registration of the company had been finalised.

Finding Breach – the member did not disclose.

1. MSIMANG, C T Company information NASOU VIA AFRIKA, 1996/012379/07, TOWER CITY TRADING 263, 2003/053113/23, VIA AFRIKA INTERNATIONAL, 2006/023443/07, FUNDA NJALO TRAINING, 2007/056778/23, THABIZOLO PROMOTIONS, 2008/121362/23,

Member’s response NEG is a holding company of which Nasou via Africa and Via Africa are subsidiaries. NEG was disclosed. Funda Njalo is an NGO. Tower City only started operating in 2010. Thabazolo Promotions is dormant.

Finding Breach in respect of Tower City Trading and Thabazolo Promotions, as they were not disclosed. The member is also in breach in respect of Funda Njalo, as it is registered as a close corporation and should therefore be disclosed.

1. MSWELI, H S Company information SIGAWULA CATERERS AND EVENTS MANAGEMENT, 2005/019097/23,

Member’s response The member did not realise that she was expected to disclose as the company is dormant.

Finding Breach – the member conceded that she did not disclose.

1. NDABANDABA, G Company information LOZANO PROPERTY INVESTMENTS, 1988/014254/23,

Member’s response The company is dormant. The member was not aware that the company still exists.

Finding Breach - the member did not disclose.

1. NTAPANE, Z S Company information SEE BEYOND TRADING, 2004/062859/23,

Member’s response The company is dormant and should have been deregistered. The member will deregister the company.

Finding Breach - the member did not disclose.

1. NZIMANDE, P M Company information EYETHU SONKE DRIVERS TRAINING, 2001/051404/23, Member’s response The company is dormant and should have been deregistered. The member will follow it up with Cipro.

Finding Breach - the member did not disclose.

1. NYANDA, F N Company information THANDA VIVI CONSTRUCTION, 2002/017235/23,

Member’s response The company is dormant and the member received no benefit.

Finding Breach - the member did not disclose.

1. RASMENI, R N Company information BUNU SISTERS TRADING AND PROJECTS, 2007/141468/23,

Member’s response The non-disclosure was an omission.

Finding Breach - the member did not disclose.

1. RWEXANA, S P Company information AFRICAN WOMEN CO-ORDINATED INVESTMENTS, 2003/012102/07, UNCEDO LWAMAKHOSIKAZI TRADING, 2007/183297/23, ABAPHUMELELI TRADING, 2005/105361/23, AFRICAN WOMEN COORDINATED INVESTMENTS, 2003/012102/07,

Member’s response The companies are dormant and did not operate.

Finding Breach - the member did not disclose.

1. SCHAFER, D A Company information MTS INSOLVENCY ADMINISTRATORS, 2009/028139/23,

Member’s response The non-disclosure was an omission. The member is not sure if the registration had been finalised at the time of disclosure.

Finding Breach - the member did not disclose.

1. SIBANYONI, J B Company information MALUJU CIVIL ENGINEERING, 2004/054333/23,

Member’s response The company is dormant and never operated.

Finding Breach - the member did not disclose.

1. SIZANI, P S Company information WOODY CAPE DEVELOPMENT CORPORATION, 1998/042298/23, EAGLE SKILLS DEVELOPMENT AGENCY, 2003/104395/23, STONE SIZANI CONSULTING, 2004/063102/23, PURPLE MOSS DEVELOPMENTS, 2007/151336/23, BUYISIKAMVA HARDWARE SOULTIONS, 2005/053332/23, MENTACOR TRADING, 2002/011739/23, EXCEL INDUSTRIES SOUTH AFRICA, 2004/092613/23,

Member’s response The member had asked a private company to do a search of all interests registered at Cipro and that information was submitted. However, the company did not do a check of close corporations and therefore they had not been included in the member’s submission. There was no intention to mislead the Committee.

Finding Breach – the member did not disclose as required. The Committee noted that seven companies had not been disclosed.

1. THOMPSON, B Company information LION’S HEAD TRANSPORT SERVICES, 2006/144197/23,

Member’s response The company is dormant.

Finding Breach - the member did not disclose.

1. TSHWETE, P Company information UNCEDO LWAMAKHOSIKAZI TRADING, 2007/183297/23, MELODY HILLS TRADING 196, 2008/228305/23, THUTHUKANI WOMEN INVESTMENT, 2008/231725/23, NKONKA ENERGY RESOURCES, 2009/018728/07,

Member’s response The companies are dormant, but their non-disclosure was an omission.

Finding Breach – the member did not disclose.

1. ZULU, M M Company information BANELE INVESTMENTS, 2004/067671/23,

Member’s response The member is in the process of resigning.

Finding Breach - the member did not disclose.

Signed Signed LT Landers BL Mashile Report to be considered.

National Council of Provinces

1. The Report of the Select Committee on Economic Development on the Amendments to Articles VI and XIV.A of the International Atomic Energy Agency Statute, dated 16 November 2010: The Select Committee on Economic Development, having considered the request for the ratification of the Amendments proposed to Articles VI and XIV.A of the International Atomic Energy Agency (IAEA) Statute, referred to it, recommends that the Council, in terms of section 231(2) of the Constitution, approve the said Agreement.

   Report to be considered

                  THURSDAY, 18 NOVEMBER 2010
   

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

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

 1) Bills passed by National Assembly on 18 November 2010:
      a) South African Citizenship Amendment Bill [B 17D – 2010]
         (National Assembly – sec 75).


      b) Births and Deaths Registration Amendment Bill [B 18D – 2010]
         (National Assembly – sec 75).

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Transport

(a)     Rport and Financial Statements of the Road Traffic Management
    Corporation for 2009-2010, including the Report of the Auditor-
    General on the Financial Statements and Performance Information for
    2009-2010 [RP 255-2010].


(b)     Report and Financial Statements of the International Air
    Services Council (IASC) for 2009-2010.


(c)     Report and Financial Statements of the Air Service Licensing
    Council (IASC) for 2009-2010.

National Council of Provinces

1. Report of the Select Committee on Security and Constitutional Development on the Civilian Secretariat for Police Service Bill [B16D- 2010] (National Assembly – sec 76), dated 17 November 2010:

   The Select Committee on Security and Constitutional Development, having considered the Civilian Secretariat for Police Service Bill [B16B-2010] (National Assembly – sec 76), referred to it, reports that it has agreed to the Bill with amendments [B 16C – 2010], and tables Bill 16D-2010 for consideration.

   Report to be considered.

2. Report of the Select Committee on Security and Constitutional Development on the Independent Police Investigative Directorate Bill [B15D-2010], (National Assembly – sec 76), dated 17 November 2010:

   The Select Committee on Security and Constitutional Development, having considered the Independent Police Investigative Directorate Bill [B15B- 2010] (National Assembly – sec 76), referred to it, reports that it has agreed to the Bill with amendments [B 15C – 2010], and tables Bill 16D- 2010 for consideration.

   Report to be considered.

3. Report of the Select Committee on Security and Constitutional Development on the Regulation of Interception of Communications and Provision of Communication-related Information Amendment Bill [B 38 – 2010] (National Assembly – sec 75), dated 17 November 2010:

   The Select Committee on Security and Constitutional Development, having considered the Regulation of Interception of Communications and Provision of Communication-related Information Amendment Bill [B 38 – 2010] (National Assembly – sec 75), referred to it, reports that it has agreed to the Bill without amendments.

   Report to be considered.

4. Report of the Select Committee on Appropriations on the Adjustments Appropriation Bill [B34-2010] (National Assembly- section 77), dated 17 November 2010.

   The Select Committee on Appropriations, having considered the Adjustment Appropriation Bill [B 34 – 2010], referred to it, and classified by the JTM as section 77 Bill, reports the Bill without amendments.

   Report to be considered.

5. Report of the Select Committee on Appropriations on the 2010 Medium Term Budget Policy Statement, dated 16 November 2010

   The Select Committee on Appropriations, having considered the 2010 Medium Term Budget Policy Statement and heard comments from identified stakeholders, reports as follows:

6. Introduction

The Minister of Finance tabled the Medium Term Budget Policy Statement (henceforth referred to as the MTBPS) on 27 October 2010, outlining the budget priorities of government for the medium term estimates. The MTBPS (spending issues portion) was referred to the Select Committee on Appropriations (the Committee) to consider and report in accordance with their respective mandates as outlined in the Money Bills Amendment Procedure and Related Matters Act No 9 of 2009 (henceforth referred to as the Act). Among its responsibilities, as per Section 6 (8) of the Act, in respect of the MTBPS, the Committee is required to consider and report on the following issues:

• The spending priorities of national for the next three years; • The proposed division of revenue between the spheres of government and between arms of government within a sphere for the next three years; and • The proposed substantial adjustments to conditional grants to provinces and local government, if any.

1. Medium Term Spending Priorities

Government prioritises its resources in the following areas: • job creation initiatives and realigning support to business to enhance employment opportunities; • enhancing the quality of education and skills development; • improving the provision of quality health care; • driving a more comprehensive rural development strategy; and • intensifying the fight against crime and corruption.

The MTBPS reflects public service delivery commitments as informed by an agreed set of development and transformation goals. In making strategic choices over the medium term, will focus on these outcomes with the greatest potential impact on economic growth and development. The overall increase over the medium term period is R7.3 billion for the 2010/11 financial year and R67 billion over the following three years.

1. Budget Estimates for the 2010/11 Mid-Year

Table 1 (below) summarises budget estimates for three spheres of government. Table 1: Adjusted Budget Allocations | |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 |- 7 020 868 | |Provincial |260 973 745 |265 139 448 | 4 165 703| |Local |30 167 706 |30 558 566 | 390 860| |Total |818 142 943 |815 678 638 |- 2 464 305 |

Source: National Treasury (2010)

The total allocations to national departments decreased by R7.0 billion, allocation to provinces increased by R4.2 billion and allocations to local government increased by R0.4billion. 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 expected revenue. In terms of section 6(1) of the Division of Revenue Act (henceforth referred to as 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).

With respect to schedule 4 grants (i.e. allocations made to provinces to supplement the funding of programmes or functions funded from provincial budgets), the Further Education and Training Colleges Grant is the only grant that received additional allocations during the 2010 adjustment period. The Further Education and Training Colleges Grant increased by R31.297 million from R3.773 billion to R3.804 billion.

The following new allocations and amendments were noted in respect of specific purpose grants to provinces:

• Agricultural Disaster Management Grant – R50.00 million was allocated to the Western Cape Province for expenditure related to agricultural disasters such as drought. This grant is allocated as the need arises. • Provincial Infrastructure Disaster Relief Grant – R214.398 million was allocated to KwaZulu-Natal for the rehabilitation of infrastructure destroyed by flooding. This Grant is allocated as the need arises. • Comprehensive HIV and Aids Grant – increases by R40.00 million from R6.011 757 billion to R6.051 757 billion. • Human Settlements Development Grant – increases by a net amount of R15 million. Gauteng Province receives an additional allocation of R115.00 million and North West Province’s allocation is adjusted downwards by R100 million. • Devolution of Property Rates Fund Grant – increases by R769.035 million from R1.096 192 billion to R1.865 227 billion. This Grant could assist in reducing the current debt by government departments to municipalities.

Schedule 6 Grant The following amendments were noted in respect of specific purpose grants to municipalities:

• Water Services Operating Subsidy Grant – increases by R8.399 million from R661.704 million to R670.103 million. This Grant subsidises water schemes owned and/or operated by the Department of Water Affairs or by other agencies on behalf of the Department and transfer these schemes to Local Government. • Municipal Drought Relief Grant – increases by R92.000 million from R228.357 million to R320.357 million. The Grant provides capital finance for basic water supply in municipal infrastructure for affected households, micro enterprises and social institutions. Schedule 7 Grant The following amendments were noted in respect of allocations-in-kind to municipalities for designated special programmes:

• The Integrated National Electrification Programme (Eskom) Grant was adjusted downwards by R31.970 million from R1.751 780 billion to R1.719 810 billion during the 2010 adjustment period. This Grant provides capital subsidies to Eskom to address the electrification backlog of permanently occupied dwellings, the installation of bulk infrastructure and rehabilitation of electrification infrastructure. • Water Services Operating Subsidy Grant – increases by R13.678 million from R145.978 million to R159.656 million. The net additional allocations to the Water Services Operating Subsidy Grant amount to R22.077 million (includes R8.399 million as per schedule 6 and R13.678 million as per schedule 7) in the 2010/11 financial year.

1. Hearings on the 2010 MTBPS

Hearings on the 2010 MTBPS took place on 02 and 03 November 2010.

The Standing and Select Committees on Appropriations jointly invited the following stakeholders: the National Department of Cooperative Governance and Traditional Affairs, the South African Local Government Association, the Financial and Fiscal Commission, the Human Sciences Research Council and Peoples Budget Coalition. Furthermore, the University of Free State and the Industrial Development Corporation were invited to comment on the MTBPS but could not honour the invitation due to certain reasons.

4.1 Financial and Fiscal Commission The Financial and Fiscal Commission (henceforth referred to as the FFC) highlighted the potential risks to the moderate economic growth projections for the South African economy, which include: interruptions in the global recovery, exchange rate volatility, human resource needs and the proposed fiscal austerity/consolidation framework over the medium-term.

The FFC submitted that for the South African economy to grow faster, a more inclusive economic growth strategy that is multi-faceted in its approach is required. The FFC advised that the strategy should focus on poverty alleviation, the labour absorption capacity of the economy, the productivity of public expenditure (i.e. quality improvements in access to social services), accelerated implementation of approved infrastructure projects; increased spending on maintenance and rehabilitation and the rooting out of corruption in all sectors of the economy. The FFC requested that more detail be provided in relation to the economic policy direction of government which frames the fiscal environment in which the intergovernmental fiscal relations system must operate for effective Commission engagement.

The FFC raised concerns with respect to the downward revisions of agriculture and health spending over the medium term, particularly in light of the fact that these sectors contribute positively to economic growth and form part of the 12 identified national priority outcomes

The FFC noted that national government’s share of the Division of Revenue declines over the 2010/11 Medium Term Expenditure Framework, whereas the provincial and local government shares increases over the same period. The FFC commented that the current formula for determining the local equitable share (LES) is unconstitutional in respect of the Revenue-raising component (RRC). Furthermore, the FFC cautioned against potential negative effects on middle income municipalities resulting from the government’s approach to focus on targeted funding for poorer municipalities to the detriment of middle income municipalities.

The FFC submitted that the biggest expenditure challenge in the provincial government is the rising personnel spending compared to other spending items that lead to growth and development. With respect to the local government sphere, the FFC said that the biggest expenditure challenges are the poor performance against conditional grants (particularly infrastructure) highlighted by rollovers amounting to R1.8 billion in the 2010/11 financial year.

With respect to proposed substantial adjustments to conditional grant allocations to provinces and local government the FFC noted the following:

• Education Conditional Grants: Dinaledi schools – Mathematics and Science proficiency are identified as key outcomes, but low pass rates do not augur well for the future; • Health Conditional Grants: Comprehensive HIV and Aids Programme – There is a mismatch between the burden of disease and the population; • National Tertiary Services Grant: The health expenditure is dominated by tertiary level hospitals, therefore the next tier of hospitals are negatively affected, therefore the same effort should be directed towards primary health care facilities; • Eradication of Backlogs in Education an Health Infrastructure Grants – The government should reconsider its decision to discontinue grants in these areas; • Agricultural Grants: Namely, Comprehensive Agriculture Support Programme (CASP), Ilima letsema and Mafisa – The FFC agrees that it makes economic sense to merge these conditional grants into one comprehensive agriculture finance programme as their impact individually is limited; and • Expanded Public Works Programme (EPWP) Incentive Grant for Infrastructure – The FFC noted low level of spending from this grant. The FFC is of the view that more effective reporting of EPWP projects will allow municipalities to access this incentive grant.

When the Committee asked the FFC to elaborate what it meant by the unconstitutionality of the revenue raising component of the local equitable share (LES) formula, the FFC explained that the unconstitutionality of the LES formula refers to the existing practice whereby deductions or additions to municipalities’ equitable share are based on actual revenue collection figures, which disregards the municipality’s capacity to collect revenue and the degree of effort made by the municipality to collect all revenues owed. The FFC advised that this is in contravention of the Constitution and therefore recommends that the LES formula should contain a revenue-raising capacity variable.

4.2 Department of Cooperative Governance

The Department of Cooperative Governance (henceforth referred to as DCoG) provided the Appropriations Committees with an overview of key focus areas and budget priorities over the 2011 Medium Term Expenditure Framework (MTEF) that will contribute to the national priority outcome 9: A responsible, accountable, effective and efficient local government system. Key strategies and programmes proposed by DCoG for the 2011 MTEF include:

• A differentiated approach to supporting local government (i.e. covering aspects of finance, services and labour); • Propose a single window of coordination, support to municipal finance and administration capability; and • Propose a refined ward committee model to deepen democracy, improved support to human settlements outcomes, implementation of the community work programme and accelerated access to basic services.

DCoG indicated that it has requested additional allocations to the baseline allocations of municipal transfers, which include the Municipal Infrastructure Grant (MIG), Bulk Infrastructure Fund (BIF) and the Local Government Equitable Share (LGES). DCoG submitted that:

• An additional allocations of R16.9 billion over the 2010/11 MTEF to the MIG baseline is requested on the basis of meeting sector targets to eradicate infrastructure backlogs;

• An additional allocations of R26.3 billion over the 2010/11 MTEF to the BIF is requested on the basis of unlocking the delivery of reticulation services by funding bulk infrastructure and procuring well located land towards addressing backlogs in order to ensure universal access to basic services. DCoG explained that the BIF will be specifically used to upgrade, refurbish and rehabilitate bulk infrastructure such as Water and Waste Water Treatment Works; and

• An additional allocations of R4.2 billion over the 2010/11 MTEF to the LGES is requested on the basis of complementing the institutional component of the LGES by funding critical skills in municipalities, prioritising water and sanitation over the MTEF in order to build long- term municipal institutional capacity through the proposed reconfigured Municipal Systems Improvement Systems Grant (MSIG) into the Local Government Institutional and Systems Support Grant (LGISSG).

DCoG further submitted that additional funding has also been requested for the following departmental programmes: Special Purpose Vehicle, Disaster Management, and the Implementation of the Masters Systems Plan for the National Disaster Management Plan, Municipal Infrastructure Audit, Local Government Turnaround Strategy and the Township Renewal Programme.

When the Committee raised the following points of clarity in respect of the proposed Special Purpose Vehicle:

• Elaborate on the rationale for a Special Purpose Vehicle (SPV)? • What form will the SPV take? • It appears that the SPV will encroach on the mandate of local municipalities, in that case who will be held accountable for infrastructure and service delivery? • The success of the SPV largely depends on cooperation and alignment between the three spheres of government, how does DCoG intend overcoming this challenge? • How DCoG envisages achieving the targets and outcomes in light of the current capacity? • How will DCoG monitor the activities of the SPV?

DCoG responded that the proposed SPV came about after an in depth analysis of the challenges affecting municipal infrastructure and service delivery, which were informed by the State of the Nation Report, the Local Government Turnaround Strategy and the need to deliver on outcome 9. DCoG reported that it cannot divulge the form that the SPV will take (there are a number of options) as it still needs to table the proposal to the Executive. DCoG views the SPV as an implementing agent and local municipalities would therefore freely enters into service level agreements with the SPV, with the local municipality being ultimately accountable for infrastructure and service delivery. DCoG has identified a lack of cooperation and coordination between the three spheres of government as a risk and will attempt to mitigate the risk by proposing that the SPV be a single window for coordination among the three spheres of government. DCoG acknowledges the need to bring in additional technical capacity in order for the SPV to achieve its goals and will draw on capacity within the private sector and government entities. The activities and outcomes of the SPV will be monitored by a joint monitoring and evaluation panel comprised of all relevant stakeholders.

4.3 South African Local Government Association

The South African Local Government Association (henceforth referred to as SALGA) indicated that the economic recovery was a welcome sign for local government. However, SALGA also cautioned that the economic recovery bears pressure on demand for quality municipal services and subsequently the ability of municipal services to support the expansion of productivity within local industries and the sustainability of key economic sectors operating within municipal boundaries.

SALGA further recommended a comprehensive review of the local government fiscal framework to address amongst others, the limited vertical share. There should be a systematic review of baselines to ensure: • 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.

Furthermore, SALGA recommended that this should be combined with efforts to build the capacity of weaker municipalities to spend efficiently and effectively.

Concern was raised regarding whether the proposed minor adjustments to the local government equitable share (LGES) formula to allocate more funding towards poorer municipalities are substantive enough to address institutional challenges, such as: the need to appoint skilled personnel to manage finances, human resources, service delivery functions and core administration functions. In addition, the availability of credible data on key variables relating to the socio-economic demographic and spatial profiles of municipalities needs to be addressed not only to update the data underpinning the LGES formula but also to enable a more fundamental review of the structure of the formula itself.

With regard to conditional grants, SALGA made the following submissions:

• The management of grants should be reviewed; • The approach on conditional grants should not be a one size fits all, it should be based on municipal needs and its capacity to deliver; • Analyse past performance to improve the operational effectiveness of the grants; • A conditional grant for rural municipalities for job creation and economic development should be introduced; • Disaster management funding should reach municipalities earlier; • Electricity Demand Side Management funding must be effectively targeted; and • Increase funding for the water services operating subsidy grant to assist municipalities struggling with refurbishment and maintenance.

Since infrastructure funding remains a challenge, it was argued that there should be an explicit link between municipal infrastructure grant (MIG) allocations and LES allocations, especially in smaller municipalities. Funding should be set aside through MIG for the funding of refurbishment and upgrade of existing infrastructure in smaller and poorer municipalities. SALGA welcomed the envisaged devolvement of the housing and public transport functions to cities and the increase in the Devolution of Property Rates Grant.

The Committees on Appropriations raised concern regarding the perceived lack of support provided by SALGA with respect to capacitating municipalities. SALGA responded that in support of municipalities they are partnering with universities who are service providers to strengthen the capacity of financial management. For example the University of Witwatersrand is offering a course in financial management. Furthermore, SALGA reported that it is reviewing the possibility of electing a permanent member to the National Council of Provinces (NCOP) to provide support to the Committees concerning local government matters.

The Committees on Appropriations sought clarity on the impact of the new demarcations and SALGA reported that there are 382 new wards in the country which will have a huge financial burden on the government, particularly in Johannesburg where there are more than 60 new wards. This also implies the increase in the number of councillors which, in turn, increases the amount allocated in respect of the institutional component of equitable share that funds the payments of councillors.

4.4 Human Sciences Research Council The Human Science Research Council (henceforth referred to as HSRC) applauds the Appropriations Committees and the Ministry of Finance for enabling public engagement with the national budget priority setting and decision making processes. Furthermore, applauds efforts to chart a new inclusive growth path that serves as an agenda for collective action.

The HSRC identified the following strengths in respect of the MTBPS: • Employment is clearly stated as the government’s top priority. However the MTBPS should be complemented by more detail on how the government will implement a new development path that will create 5 million jobs within 10 years; • It takes into account the scale of challenges faced in areas of poverty, education and health; • It recognises cities as engines of growth, thus requiring more investment in infrastructure to address bottlenecks and backlogs; • It recognises that expanding informal settlements need investment; • It provides for faster growth in municipal spending compared to growth in 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.

The HSRC noted the insufficiency of progress with respect to broad education, health and economic indicators. The HSRC recommends that investment in these broad areas targeted for priority needs to be further specified.

With respect to Education, the challenge is how and where to intervene, in order to break the cycle of the education and development trap. Substantial investments in early learning through reception year and foundation phase of schools are critical to breaking the stagnation of low performance scores.

The Aids epidemic is stabilising, however intensive efforts are still required. The 3rd national HIV prevalence, incidence and communication survey (2008) revealed a number of positive trends. A decline in the HIV prevalence in the teenage population (15-19 years) has been observed, as well as a decline in mother-to-child infections. However, HIV infection risks remain high in the country, with women aged between 25 and 29 years continuing to record very high levels of HIV infection.

In respect to economic growth, the HSRC noted the importance of a knowledge economy, which would contribute to economic growth. South Africa’s scores are low in respect of the Knowledge Economy Index and the number of full time equivalent researchers per 1 000 people compared to its counterparts. Furthermore there has been slow uptake of the Research and Development (R&D) tax incentive by the private sector. The extent to which the requisite institutional reforms and actions to support the incentive regime have been implemented by government should also be considered. Hence, the HSRC calls for the government to continue to prioritise R&D and monitor and evaluate programmes that must deliver on R & D outcomes.

The HSRC furthermore placed emphasis on the need for research information to inform medium term expenditure decisions, with concerns raised regarding whether national data collection needs in the areas of health and education are receiving sufficiently allocations from national funding. The HSRC proposes a new national health survey (i.e. South African National Health and Nutrition Examination Survey [SANHANES]) that will provide real-time annual monitoring of the health status of the nation and fill the current gap in national health surveys. Furthermore, proposes accessibility modelling (that will identify access norms and standards, demand for services, service infrastructure supply etc.) and strategic use of GIS capabilities for spatial optimisation of services, resulting in improved service delivery.

The HSRC commends the acknowledgement in the MTBPS of procurement and tender fraud which is currently under investigation and the efforts of the Inter-Ministerial Committee on Anti-Corruption in its efforts to address inefficiencies in, and improving the effectiveness of public management. The HSRC also proposes a closer examination of the nature and scope of service delivery protests to avoid future conflicts with communities and facilitate implementation, given the imminent increases in tariffs and user charges.

The Appropriations Committees raised the following points of clarity in respect of the HSRC submission:

• What are the HSRC’s recommendations for improving educational outcomes in light of the poor outcomes observed thus far? • The Committees also wanted to know whether the government HIV/Aids awareness programme has been effective in light of the prevalence of HIV infections continuing to remain high among women aged 25-29 years. • Concern was raised that the status of Tuberculosis (TB) was not mentioned in the HSRC presentation, as the prevalence of TB is quite high as well. • What conditionalities could be attached to social welfare grants? • What is the optimal percentage share of Gross Domestic Product (GDP) that need to be invested in R&D activities? • What comparative studies has the HSRC undertaken in relation to the economic growth potential of cities?

The HSRC responded that government has been proactive by intervening in critical areas such as curriculum and teacher/educator training to bring about positive outcomes. The HSRC indicated that it would provide empirical evidence of factors affecting educational outcomes.

The HSRC explained that the prevalence indicator could be misleading as it does not reflect the positive trends, such as the fact that HIV/Aids patients are living longer as a result of anti-retroviral treatment and more people are becoming aware of their HIV/Aids status. Prevalence is measured according to the number of new HIV incidents reported and the mortality rate of HIV infected people or Aids patients. The HSRC indicated that in the Western Cape, TB forms part the Burden of Disease Programme, whereby HIV/Aids and TB are diagnosed and treated together. This has resulted in cost savings and improved diagnosis and treatment of HIV/Aids and TB. The HSRC were also of the opinion that the Western Cape model could possibly be implemented across the country.

The HSRC proposed the following conditionalities related to certain social welfare grants: - School enrolment could be a conditionality attached to the child- support grant; - Teenage mothers should either continue with their schooling or enrol in an Further Education and Training (FET) institution in order to gain access to the child-support grant; and - Conditionality in respect of the proposed youth employment grant could be that the individual should show proof of actively seeking work in order to qualify for the grant.

The HSRC reported that R& D as a percentage share of GDP has declined, despite government committing to 1% of GDP, Currently the R& D as a percentage share of GDP is 0.93 %. The HSRC recommends an optimal percentage share of 1.5% of GDP.

The HSRC reported that it forms part of a research group that is reviewing and assessing the socio-economic status of cities. Findings are that the economic performance of cities have benefited the country as a whole and have been the drivers of employment creation. On the other hand, it has placed greater demand on cities infrastructure and service delivery, resulting in greater pressure on the cities finances. Hence, the HSRC cautions the government and recommends a more balanced approach in investment and the distribution of investment between rural and urban areas.

4.5 Peoples Budget Coalition The Peoples Budget Coalition raised the following concerns with respect to the MTBPS:

• It is of the view the MTBPS is proposing a contractionary budget; • The MTBPS should have taken a more development perspective, particularly focusing on the Millennium Development Goals; • it is also of the view that the MTBPS does not place enough emphasis on the creation of employment; • Employment should be at the primary focus of South Africa’s economic policy; • The economic growth projection of 3.9 per cent is not sufficient to create jobs. • A concern was raised that the cost burden of the global economic recovery will be placed on the south. Calls for fiscal consolidation by the G20 are a means to introduce fiscal austerity measures in which public sector expenditure on social services are to be cut. Thus a call for South African fiscal policy to be independent of the G20 prescriptions; • Another concern was raised with regard to the currency appreciation and its implications for the export trade sector and the local producers that supply to the export market. It was rgued that it could have implications for labour operating within this sector. Hence, the People’s Budget Coalition called for a coherent exchange rate management policy package that is linked to industrial development policy and implemented at a macro-economic level.

The People’s Budget Coalition also questioned the Committee as to the progress of the establishment of the Parliamentary Budget Office as required by the Money Bills Amendment Procedure and Related Matters Act.

1. Committee Observations:

Having considered the 2010 MTBPS and engaged extensively with the identified stakeholders, the Select Committee on Appropriations noted the following key observations or concerns:

5.1 Government is cautioned against the potential negative effects resulting from the government’s approach to focus on targeted funding for poorer municipalities to the detriment of middle income municipalities.

5.2 It was highlighted that current practice that is used to determine the local equitable share (LES) is unconstitutional in respect of the Revenue- Raising Component (RRC).

5.3 The availability of credible data on key variables relating to the socio-economic demographic and spatial profiles of municipalities needs to be addressed not only to update the data underpinning the LGES formula but also to enable a more fundamental review of the structure of the formula itself. 5.4 Concern was raised regarding whether the proposed minor adjustments to the local government equitable share (LGES) formula to allocate more funding towards poorer municipalities are substantive enough to address institutional challenges, such as the need to appoint skilled personnel to manage finances, human resources, service delivery functions, and core administration function. 5.5 Government efforts to chart a new inclusive growth path that serves as an agenda for collective action is applauded. However, government is required to provide more details on the proposed new growth path/ economic policy direction of the country.

5.6 It was further highlighted that government, at the provincial level, seems to be spending more funds on the compensation of employees rather than on programmes.

5.7 Government is not doing well with respect to health spending and therefore the downward revision is justifiable.

1. Committee Recommendations

The Select Committee on Appropriations, having considered the 2010 Medium Term Budget Policy Statement and received comments and recommendations from the identified stakeholders, recommends to the House that the 2010 Medium Term Budget Policy Statement be supported.

The Select Committee on Appropriations further recommends the following:

• That the overall expenditure of government at the end of the second quarter of each financial year needs to be at 50 percent. This will most likely lead to improved quality of spending and reduce the level of unauthorised spending and fiscal dumping at the end of the financial year.

• That the Department of Co-operative Governance should consult government and other relevant stakeholders with respect to the proposed Special Vehicle Unit to avoid duplication of government programmes. • That the Department of Health should investigate reasons for under- spending of grants and discourage the tendency of returning funds to National Treasury. This works against the plans to transform our Health institutions.

Report to be considered.

1. Report of the Select Committee on Finance on the 2010 Medium Term Budget Policy Statement, dated 17 November 2010

   The Select Committee on Finance, having considered the 2010 Medium Term Budget Policy Statement, reports as follows:

2. Introduction and Background

The Minister of Finance (the Minister) tabled the 2010 Medium Term Budget Policy Statement (MTBPS) before Parliament on 27 October 2010. In tabling the MTBPS, the Minister met his obligation under section 28 of the Public Finance Management Act 1 of 1999 (PFMA) that requires the Minister to table multi-year budget projections for revenue, expenditure and key macro- economic projections on an annual basis. In addition to that, the Minister also met his obligation under section 6(1) of the Money Bills Amendment Procedure and Related Matters Act 9 of 2009 (henceforth referred to as the Money Bills Act) that requires the Minister to submit to Parliament the MTBPS.

According to section 6(5) of the Money Bills Act, the Standing Committee on Finance and Select Committee on Finance (the Committees) must 30 days after the tabling of MTBPS report to the National Assembly (NA) and the National Council of Provinces (NCOP), respectively, on the proposed fiscal framework for the next three financial years. In line with section 6(2), the Committees report on a revised fiscal framework for the 2010/2011 financial year and the proposed fiscal framework for the following three years; and an explanation of the macro-economic and fiscal policy position, the macroeconomic projections and the assumptions underpinning the fiscal framework.

Following the tabling of the 2010 MTBPS and the engagement with the Minister, the Committees held hearings on 10 and 11 November 2010, receiving submissions from a panel of economists, organised labour and organised business. This report reflects the main themes emerging from the engagement with the Minister, economists, organised labour and organised business. This report includes two main sections, namely: Economic Outlook and Policy, and Fiscal Trends and Policy. The former section gives an overview of economic outlook and policy with specific reference to key macro-economic indicators within the context of the current global economic environment. The latter section provides details of fiscal policy over the Medium Term Expenditure Framework (MTEF) with specific reference to the fiscal stance adopted by government.

1. The 2010 Medium Term Budget Policy Statement Basically, the 2010 MTBPS provides an account of current trends in the economy, the medium-term outlook, overview of macroeconomic and fiscal considerations, and a summary of government’s spending plans for the period ahead. The MTBPS therefore sets out Government’s spending plans for the next three fiscal years, based on certain macroeconomic assumptions. In doing so, there is usually a wide range of aspects to be taken into account. The 2010 MTBPS covered six broad themes, namely: economic assumptions, fiscal framework, spending priorities, division of revenue, changes to conditional grants and the mid-term report on spending.
2. Job Creation and Economic Growth

In order to meet the developmental needs of South Africa a new economic growth path needs to be developed in consultation with all social partners across several frontiers; which includes education, skills development, national health insurance, land and agrarian reform, residential settlements and urban renewal, environment management, infrastructure investment and maintenance, enterprise development, and public sector service delivery. However, before the implementation, there will be a need for some ground work to be done in the public sector and private sector in terms of coordinating public policy and market regulations.

The 2010 MTBPS indicated the need to raise the economy onto a more labour intensive method to create jobs across the board. The economic growth does not assist the economy when there are less job opportunities being created. This means that the policy debate goes beyond the macroeconomic and financial challenges to include the social component.

The 2010 MTBPS outlines the macroeconomic, fiscal and public expenditure dimensions of the proposed development path. It emphasised the need for the increase on infrastructure investment spending for faster growth and to reduce the budget deficit over the next period. The discipline in financial management in the public sector and improved education, health, and other infrastructure programmes is crucial. There is a need for the following factors to be agreed upon by government and its social partners:

• Strengthening labour market institutions should include improved and expanded further education and training opportunities, placement services and to increase the demand for labour; • An integrated approach in financing some of the economic infrastructure investment such as development enterprise, housing and farming support; • The enhanced industrial policy action plan which incorporates industrial development and promotion, support for small businesses and other local opportunities; • More competition is required for certain industries such as transport, communication and electricity; • The economic development of South Africa needs to be linked to the African continent for improved economic performance; and • Improved service delivery is of great importance and this can only be possible through good financial management, control systems, good governance, proper budgeting and well managed contractors to deliver the agreed output or targets.

Crucial issues to be addressed during this MTEF period include how to increase job-creating growth. Other issues are promoting appropriate budget balance and to deal with capital flows and the resultant appreciation of the rand.

The 2010 MTBPS re-affirms the important role of the private sector in growth and employment creation. While social grants provide an important safety net for about a quarter of the population, South Africa’s long-term prosperity depends on more people being drawn into work. The private sector accounts for 75 per cent of all economic activity and a slightly higher share of employment, and will remain the primary driver for job creation. The public sector plays a complementary role in this process. Alongside a range of initiatives to increase training and skills development, specific government interventions to raise employment include an expanded public works program and a youth job imitative.

1. Macroeconomic Forecast

National Treasury reports that Gross Domestic Product (GDP) growth is expected to moderate in the second half of the 2010/11 financial year. The 2010 MTBPS indicates that, although the economy has gained strength since the budget was tabled at the beginning of the 2010/11 financial year, the growth outlook has so far improved. This is evident from the new projected economic growth, which is expected to be between 3 to 3.5 per cent in the 2011 calendar year. The recovery in revenue and moderate growth in public spending is expected to decrease the fiscal deficit. For example, the estimated deficit of 5.3 per cent of GDP projected for the 2010/11 financial year is projected to decline to 3 per cent in the 2013/14 financial year. The 2010 MTBPS also projects that government debt will stabilise to 40 per cent of GDP by the 2015 calendar year. It was also noted that expenditure has increased by R67 billion relative to the baseline over the Medium Term Expenditure Framework (MTEF). This increase in expenditure has been informed by the 12 outcome policy priorities which include education, health, infrastructure, and job creation.

Inflation is expected to remain below 6 per cent over the Medium Term Expenditure Framework (MTEF) while private investment and employment recover gradually. Business Unity South Africa (BUSA) agrees that inflation forecasts are realistic with headline Consumer Price Index (CPI) inflation is expected to remain below 6 per cent over the next three years, but indicated that it remains essential to successfully anchor inflationary expectations. According to BUSA, lower inflation presents an opportunity for the use of monetary policy to further support economic activity. Growth prospects are expected to be driven by household consumption and gross fixed capital formation and will undoubtedly be assisted by lower inflation.

The 2010 MTBPS indicates that sustained exchange rate appreciation will lead to unbalanced growth, widening the current account deficit and increasing the economy’s vulnerability to shocks. Table 1 (below) summarises the key macroeconomic projections inclusive of 2007 and 2013 calendar years. Table 1: Macroeconomic Projections 2007 - 2013 |Calendar Year |2007 2008 |2010 |2011 | | |2009 |Estimat|2012 | | |Actual |e |2013 | | | | |Forecast | |Percentage change unless otherwise indicated | |Final household |5.5 |2.4 |-3.1 |2.6 |3.4 |4.1 |4.5 | |consumption | | | | | | | | |Final government |4.7 |4.9 |4.7 |4.9 |4.3 |4.2 |3.7 | |consumption | | | | | | | | |Gross fixed |14.2 |11.7 |2.3 |0.8 |5.6 |5.0 |5.9 | |capital formation| | | | | | | | |Gross domestic |6.4 |3.3 |-1.8 |4.1 |4.2 |4.5 |4.9 | |expenditure | | | | | | | | |Exports |5.9 |2.4 |-19.5|4.1 |5.7 |6.6 |7.6 | |Imports |9.0 |1.4 |-17.4|8.4 |7.8 |7.9 |8.7 | |Real GDP growth |5.5 |3.7 |-1.8 |3.0 |3.5 |4.1 |4.4 | |GDP inflation |8.2 |9.2 |7.3 |6.1 |5.3 |5.5 |5.6 | |GDP at current |2,017.|2,283.|2,407|2,631.4|2,867|3,148|3,471| |prices |1 |8 |.7 | |.1 |.0 |.9 | |(R billion) | | | | | | | | |Headline CPI |6.1 |9.9 |7.1 |4.4 |4.7 |5.0 |5.2 | |inflation | | | | | | | | |Current account |-7.2 |-7.1 |-4.0 |-4.2 |-4.9 |-5.3 |-5.8 | |balance (% of | | | | | | | | |GDP) | | | | | | | |

Source: National Treasury (2010) 4.1 Economic Policy and Outlook

South Africa experienced a decline in gross domestic product of 1.8 per cent in 2009, and a loss of employment estimated close to a million jobs. This was a severe deterioration, despite a continued expansion in government infrastructure spending and the countercyclical monetary and fiscal policy response.

Higher commodity prices have contributed to a somewhat more buoyant recovery in the 2010 calendar year than was anticipated at the beginning of the 2010 calendar year during the National Budget in February 2010. Households have started to spend again as interest rates declined together with lower inflation. According to the Federation of Trade Unions of South Africa (FEDUSA), the 2010 MTBPS had to address a wide range of factors, ranging from the need to re-balance the economy after the deep recession, global developments and the need to make some inroads to mass unemployment and poverty. FEDUSA points out that, to this list, the urgent need to improve service delivery and to eradicate corruption and fraud must be added. 4.2 The New Growth Path The budget policy framework is informed by requirements of a new growth path, in which six key sectors and activities have been identified for unlocking employment potential:

• Infrastructure, through the expansion of transport, energy, water,
  communications and housing;
• Agriculture and the agro-processing sector;
• Mining and mineral beneficiation;
• The green economy and associated manufacturing and services;
• Manufacturing sectors identified in the industrial policy action plan;
  and
• Tourism and selected services sectors.

The Minister of Finance highlighted that the new growth path provides the basis for coordinated policies and programmes across the state, and reinvigorated dialogue and cooperation among social partners.

According to the Minister of Finance, South Africa needs to promote more rapid job creation through a broad range of policy initiatives to achieve the country’s developmental aims. These include the following:

• Labour-market institutions must be  strengthened,  including  expanded
  further education and training and specific interventions  are  needed
  to  increase  both  public  and  private  sector  demand  for  labour,
  especially for young work seekers;
• A greater participation of development  finance  institutions  in  co-
  financing infrastructure projects, enterprise development, housing and
  farming support;
• Industrial policy action plans have to be implemented,  together  with
  increased  support  for   small   enterprises   and   local   economic
  development;
• Greater investment and competition  are  needed  in  the  electricity,
  transport and communications sectors;
• Improved economic cooperation between countries  in  Southern  Africa,
  including financial and trade institutions, transport, communications,
  energy and water networks; and
• Underlying all of the above, improvements in public  service  delivery
  will depend  on  better  financial  management,  good  governance  and
  disciplined pursuit of agreed service delivery outputs and targets. BUSA  believes  that  the  2010  MTBPS  provided   important   guidance   on macroeconomic policy direction. BUSA  welcomes  the  signals  that  the  new growth path will be aligned  to  the  existing  framework  and  vice  versa. Furthermore, BUSA believes that greater attention must be given  to  address underlying  competitiveness issues and  that  reducing  the  cost  of  doing business is supportive of the new growth path,  which is probably the  least expensive approach to unlocking South Africa’s long term growth potential. The Chief Economist at the Efficient Financial  Holdings,  Mr  Dawie  Roodt, points out that despite a rather healthy fiscal stance, significant  changes in certain variables can be expected  over  the  next  few  years.  The  new growth path will require huge amounts of  money  and,  although  the  fiscal deficit is likely to  remain  within  acceptable  levels,  huge  expenditure requirements by the parastatals will add significantly  to  the  state  debt burden. Expenditure by parastatals is under the line, i.e. items  which  are not included in the deficit, but which are included in state debt. The  2010 MTBPS expects state debt relative to  GDP  to  top  40  per  cent  by  2014, significantly higher than now but a  lot  lower  than  that  of  many  other economies.

FEDUSA indicates that South Africa’s present economic growth trajectory cannot meet the country’s employment needs. Faster growth is required over an extended period of time to significantly increase labour absorption, reduce high unemployment and achieve a more equitable distribution of income. FEDUSA welcomes the attention given to the serious socio-economic problem of unemployment through the proposed new growth path. According to FEDUSA, previous programs such as the Reconstruction and Development Programme (RDP), Growth Employment and Redistribution (GEAR) and Accelerated and Shared Growth Initiative of South Africa (ASGISA) had this as their primary goal. The current strategies and programs contained in the budget already contain elements of the proposed new growth path.

The National Union of Metalworkers of South Africa (NUMSA) supports the call for a new growth path that will place employment at the centre of government’s economic policy. The People’s Budget Coalition (PBC) points out that the new growth path must be supported by policies that create and retain decent work, together with the eradication of poverty and inequality.

The Institute for Democracy in South Africa (IDASA) is of the view that the 2010 MTBPS does not contain much more detail on the so-called new growth path intended to create five million jobs over the next ten years, thus reducing the unemployment rate from approximately 25 per cent to approximately 15 per cent by 2014.

1. Fiscal Policy

Fiscal policy guides government’s decisions about revenue, spending and borrowing. South Africa’s fiscal policy enables government to deliver on its developmental mandate by providing resources in a manner that is sustainable and that reinforces the stability of the economy.

National Treasury reported that the consolidated government deficit is projected to recover from 6.3 per cent of GDP in the 2010/11 financial year to 3.2 per cent by the 2013/14 financial year. The recovery will be driven by the strong uptake in revenue and the stabilisation in non-interest spending. Growth in expenditure will need to moderate as debt service costs increase over the MTEF. The counter-cyclical fiscal policy will aim to grow revenues while gradually reducing non-interest stimulus spending. It is important to keep the fiscal trajectory on a sustainable path while meeting growth expectations. Table 2 (below) summarises the consolidated government fiscal framework inclusive of 2007/08- 2013/14 financial years.

Table 2: Consolidated government fiscal framework 2007/08 – 2013/14 | |2007/08|2008/09|2009/10|2010/11 |2011/12 |2012/13|2013/14| |R Billion | Outcome |Estimate |Medium-term estimates | | |Preliminary | | | |Revenue |625.7 |684.8 |666.9 |761.0 |843.0 |931.7 |1,040.2| |Percentage |30.1% |29.5% |27.2% |28.4% |28.7% |28.9% |29.1% | |of GDP | | | | | | | | |Expenditure|591.3 |711.7 |832.5 |904.1 |977.2 |1,059.1|1,154.2| |Percentage |28.4% |30.7% |33.9% |33.7% |33.3% |32.8% |32.3% | |of GDP | | | | | | | | |Budget |34.4 |-26.8 |-165.6 |-143.1 |-134.2 |-127.4 |-114.0 | |balance |1.7% |-1.2% |-6.7% |-5.3% |-4.6% |-3.9% |-3.2% | |Percentage | | | | | | | | |of GDP | | | | | | | |

Source: National Treasury (2010) The Minister of Finance indicates that, as the world economy recovers from the global crisis, there is considerable debate about how quickly governments should be closing their budget deficits. It is argued that the recovery will be held back if governments cut expenditure too quickly, while others point to the potentially devastating effects of fiscal default.

FEDUSA commends government on its fiscal stance during and after the recession. South Africa’s counter-cyclical policy is designed to steady the economy and to protect core social and economic programs from undue volatility. Before the recession, government saved revenue and had a small balance surplus. During the recession, government ran a deficit so as to maintain its spending. In this way, government moderated the adverse impact of the business cycle and raised long-term growth.

FEDUSA further points out that as the economy’s growth rate increases, the rate of growth in government spending will have to be reduced. While the higher fiscal deficit was the appropriate counter-cyclical response during the downturn, government will have to reduce the level of borrowing in the years ahead. As the economy recovers, government will tighten its stance to avoid pushing up interest rates and crowding out private-sector investment. It also follows that during the 2010 MTBPS period, monetary policy will bear the brunt in efforts to maintain inflation within the target range of 3 to 6 per cent.

BUSA welcomes the announcement that the budget deficit is expected to be narrowed to approximately 3 per cent of GDP by the 2013/14 financial year, and stabilisation of government debt at about 40 per cent of GDP in the 2015/16 financial year. BUSA believes that the 2010 MTBPS has broadly struck the right balance between fiscal consolidation and being growth- friendly.

IDASA is of the view that the 2010 MTBPS as presented is fairly conservative and that the South African budget policy in response to the recession consists broadly of maintaining pre-recession public expenditure commitments in the face of likely declining tax revenue. According to IDASA, it is necessary that the budget deficit and consequent borrowing requirements are permitted to increase. In other words, budget policy is becoming fairly counter-cyclical through the use of automatic stabiliser of tax revenue fluctuation.

The PBC indicates that the budget deficit is projected to narrow, as National Treasury moderates government spending in order to stabilize public debt at approximately 40 per cent by the 2015/16 financial year. This will not assist in speeding the recovery and stemming the tide of job losses. The budget deficit is projected to be 3.2 per cent by the 2013/14 financial year. The structural budget deficit, which takes out cyclical effects, is projected to be 3 per cent.

1. Capital Flows and Exchange Rate Management

The 2010 MTBPS indicates that the net capital inflows to South Africa have risen strongly over the last two years, reaching 5.5 per cent of GDP in the first half of 2010 compared with 4.7 per cent in 2009 as a whole.

As contained in the 2010 MTBPS, the rand has appreciated by 7.5 per cent against the United States (US) dollar since December 2009, and by 6.1 per cent against a trade-weighted basket of currencies. Because South Africa has higher inflation than its major trading partners, the real effective rand exchange rate, which reflects losses or gains in competitiveness, is now approximately 12 per cent above its average level for the past decade.

National Treasury reported that due to international factors, capital flows were driven to emerging markets causing the rand to strengthen. The real exchange rate is 12 per cent above its 10 year average. Chile has a similar degree of overvaluation, but Brazil on the other hand is much more stretched.

National Treasury and the South African Reserve Bank (SARB) will continue to purchase foreign exchange reserves. SARB will sterilise inflows associated with foreign direct investment inflows using foreign exchange swaps. These include: • Exchange control and offshore investment limits on individuals amended; • To make SA attractive as a corporate investment destination and encourage investment in the rest of the African continent; • Exchange controls on domestic companies will be reformed to remove barriers to their international expansion from a domestic base; and • Prudential framework for foreign investment by private and public pension funds, including the Government Employees Pension Fund (GEPF).

BUSA reported that they support the commitment to a flexible exchange rate management regime and believes that ‘leaning against the wind’ is the least costly option in dealing with the volatility of the rand. This approach, combined with reserve accumulation and exchange control reform can further alleviate the pressures on the rand.

6.1 Potential Favourable Implications of Exchange Rate Management

According to the Chief Economist at the Industrial Development Corporation, Mr Lumkile Mondi, potential favourables to exchange rate management includes the increase in price competitiveness of exports, at least temporarily (bearing in mind the progressive erosion of such competitiveness depending on inflationary impact). This could lead to increased export market penetration, assuming there is appropriate demand. If price competitiveness and stability are sustained, it could lead to progressive recapturing of foreign markets and securing new external customer bases.

The local market could be regained if price competitiveness and stability is sustained. Exchange rate management could provide positive implications for the bottom line of commodity exporters whose external sales are denominated in foreign currencies, while operational costs are rand-based. Foreign tourism earnings could be increased as a weaker rand raises South Africa’s attractiveness. Mr Lumkile Mondi pointed out that these factors could increase local production, employment gains, higher investment propensity and job gains.

Mr Lumkile Mondi further indicates that exchange rate management could contribute to higher dividend receipts (in rand terms) from South African investments abroad and potentially enhances the wealth effect for South African holders of offshore assets. Positive fiscal implications include potentially higher tax revenues due to increased economic activity, improved corporate returns and higher household incomes through employment gains. Implications of the Balance of Payments may be positive if export demand recovers substantially and significant import substitution is realised.

6.2 Potential Unfavourable Implications of Exchange Rate Management

As indicated by Mr Lumkile Mondi, exchange rate management creates uncertainty over potential impact of intervention in terms of desired outcomes and their sustainability. The cost of interventions is dependent on the choice of instruments, while an abrupt unwinding of substantial speculative positions could have a destabilising effect, at least in the short-term, but effects could be long-lasting if investors’ perceptions are unfavourable. Considering South Africa’s low savings propensity and its dependency on foreign capital inflows to finance its current account deficit and funding requirements, negative perceptions may have serious adverse repercussions. The timing of interventions is critical in order to minimise unintended consequences, for example, a negative impact on the cost of investment- related imports, while exports may not recover sufficiently due to weak global demand.

Exchange rate management could lead to a potential higher inflation environment (via imported inflation, especially input costs such as fuel and food items), with negative implications for interest rates, investment activity, employment, general cost of living and domestic consumption demand. FEDUSA asserts that the increased capital inflows and resultant appreciation of the rand is partly a result of a positive interest rate differential, but also a result of South Africa’s relatively favourable fiscal position.

Although Government has opted for an exchange control relief as the main focus area, FEDUSA is of the opinion that this leaves the option open for tax measures. In normal times, a tax on capital flows may lead to less capital flows to South Africa. FEDUSA is therefore of the opinion that the exchange control relief is the right option under the current circumstances. The PBC indicates that as emerging market exchange rates appreciate, they suck in imports from advanced economies and struggle to expand their export markets. The massive trade deficits that exchange rate appreciation will generate for countries in Southern Africa will constitute the basis for advanced economies to exit the crisis. The PBC is also of the view that financing long-term investment, using short-term capital inflows, will create a massive imbalance in the national balance sheet, thus maturity mismatches will result, and high interest rates will be required to keep these mismatches away from binding.

While BUSA supports the view that international cooperation is needed to achieve a more stable international financial environment, the PBC argues that short-term capital inflows must be taxed because they place the level of the exchange rate in a manner that is inconsistent with the requirements of industrial development.

Mr Lumkile Mondi advised Government not to interfere with the prevailing exchange rate management policy as the cost of the intervention could be high and the desired outcomes of a proposed intervention may not materialise as observed in Brazil and other emerging economies. Mr Mondi suggested that the Government’s long-term strategy should be to develop the infrastructure of the entire Southern African region, both to improve access to regional resources and to develop a local market to pick up slack left by the lack of growth in the US and Europe. Mr Mondi further cautioned that instead of fighting the Rand’s relative strength, South Africa should use the opportunity to import the capital components necessary to underpin growth in the region, such as railway engines and infrastructure components.

1. Tax Revenue and Policy

Budget revenue is the amount of revenue available to the fiscus to finance expenditure after taking into account tax revenue, other revenue and transfers to other members of the Southern African Customs Union (SACU). Tax revenue is the largest contributor to budget revenue. Tax revenue is highly cyclical because taxes are levied on economic activity. This means that, if the economy is performing well, more tax revenue will be collected and vice versa.

South Africa’s spending programmes have to be paid for. It is therefore reassuring to be able to note that the improved economic performance has contributed to a projected increase of R31 billion in tax revenue for the 2010/11 financial year, by comparison with the estimated figures during the 2010 National Budget in February 2010.

Total tax revenue is expected to amount to R679 billion in the 2010/11 financial year (25.3 per cent of GDP). A strong increase in value added tax (VAT) proceeds has been recorded, partly attributed to increased consumer demand, but also because of lower capital investment and the associated reduction in VAT refunds. Customs duty collections have improved, mainly as a result of higher vehicle and component imports. For the period ahead, tax revenue is expected to average about 26 per cent of GDP that is still somewhat below the levels recorded before the recession.

IDASA indicated that, although tax revenue performed slightly better in the 2010/11 financial year than anticipated and is set to continue doing so over the medium-term, the actual recovery of tax revenue levels to pre- recession levels will take considerable time. The overruns of this fiscal year largely reflect a highly cautious 2010 Budget, which did not make the mistake of assuming things would turn out much better than they did.

1. Government Debt

According to the 2010 MTBPS, the fiscal stance targets a combination of revenue and expenditure that will enable government to pay for existing programmes while reinforcing the sustainability of the public finances over the following three years.

BUSA welcomes the announcement that the budget deficit is expected to be narrowed to approximately 3 per cent of GDP by the 2013/14 financial year, and stabilisation of Government debt at approximately 40 per cent of GDP in the 2015/16 financial year. BUSA believes that the 2010 MTBPS has broadly struck the right balance between fiscal consolidation and being growth- friendly. However, the overall public-sector borrowing requirement needs to be managed carefully and that huge borrowing programmes by both Eskom and Transnet do not jeopardise long term borrowing costs for the country.

It is noted in the 2010 MTBPS that real non-interest government expenditure per person has doubled over the past eight years, which was made possible by buoyant growth and revenue, and the declining share of debt service costs in GDP. Government spending on infrastructure and social assistance continued to expand strongly during the economic downturn in 2008 and 2009 calendar years. Expenditure growth will be slower over the period ahead, averaging real growth of approximately 3 per cent per year.

The main features can be summarised as follows:

• Higher GDP growth and reduced inflation;
• A recovery in tax revenue from 24.4 per cent of  GDP  in  the  2009/10
  financial year to 26.4 per cent of GDP by the 2013/14 financial year;
• A moderation in the real growth  of  non-interest  expenditure  and  a
  reduction in the proportion of expenditure to GDP over the MTEF; and
• A  rise  in  government  debt-service  costs  from  7.5  per  cent  of
  expenditure in the 2010/11 financial year  to  9.6  per  cent  by  the
  2013/14 financial year.

Table 3 (below) provides a summary of total government debt inclusive of 2007/08 and 2013/14 financial years.

Table 3: Total government debt 2007/08 – 2013/14 |As at 31 March|2007/08 |2010/11 | 2011/12 | |R Billion |2008/09 |Estimate|2012/13 | | |2009/10 | |2013/14 | | |Outcome | |Medium-term estimates| |Domestic Debt | | | | | | | | |Gross loan |480.8 |529.7 |705.5 |880.9 |1 045.2|1 |1 | |debt |93.8 |101.3 |106.6 |107.2 |107.2 |211.6 |356.0 | |Less: Cash |387.0 |428.4 |598.9 |773.8 |938.0 |107.2 |107.2 | |balance | | | | | |1 |1 | |Net loan debt | | | | | |104.4 |248.8 | |Foreign | | | | | | | | |Gross loan |96.2 |97.3 |99.5 |96.7 |104.4 |107.7 |104.4 | |debt |- |- |25.2 |45.3 |56.5 |51.5 |37.8 | |Less: Cash |96.2 |97.3 |74.3 |51.4 |47.9 |56.2 |66.6 | |balance | | | | | | | | |Net loan debt | | | | | | | | |Total gross |577.0 |627.0 |804.9 |977.6 |1 149.6|1 |1 | |loan debt |483.2 |525.6 |673.2 |825.2 |985.9 |319.3 |460.4 | |Total net loan| | | | | |1 |1 | |debt | | | | | |160.6 |315.4 | |As percentage | | | | | | | | |of GDP: |27.7 |27.0 |32.8 |36.4 |39.2 |40.9 |40.9 | |Total gross |23.2 |22.6 |27.4 |30.7 |33.6 |36.0 |36.9 | |loan debt | | | | | | | | |Total net loan| | | | | | | | |debt |16.7 |15.5 |12.4 |9.9 |9.1 |8.2 |7.2 | |As percentage | | | | | | | | |of total gross| | | | | | | | |loan debt: | | | | | | | | |Foreign gross | | | | | | | | |loan debt | | | | | | | |

Source: National Treasury (2010)

1. Key Issues

The following key issues have been identified from the 2010 MTBPS and submissions from organised labour and organised business:

• Until recently, the constitutionally-required legislation setting  out
  the procedure for Parliament to amend the budget has been  enacted  as
  the Money Bills Amendment Procedure and Related Matters Act  9,  2009.
  To support it in it’s application  of  the  Act,  Parliament  must  be
  capacitated through the  establishment  of  the  Parliamentary  Budget
  Office as mandated in this Act;
• Most commentators welcomed the emphasis in both the unveiling  of  the
  new growth path and the 2010 MTBPS on the importance of  partnerships.
  However, some indicated that the 2010 MTBPS did not contain much  more
  detail on the new growth path which is intended to create five million
  jobs over the next ten years, thus reducing the unemployment rate from
  approximately 25 per cent to approximately 15 per  cent  by  the  2014
  calendar year. This is not surprising, given  that  the  detail  still
  needs to be worked out and other stakeholders be consulted.
• Fiscal and monetary measures  are  being  taken  in  response  to  the
  present strength of the Rand.  However,  some  commentators  cautioned
  Government  not  to  interfere  with  the  prevailing  exchange   rate
  management policy as the cost of the intervention could  be  high  and
  the desired outcomes of a proposed intervention may not materialise.

1. Conclusion

In the context of the current economic and social challenges and that of a small open economy integrated to the global marketplace, a commitment to a prudent macroeconomic framework is crucial. Prudent fiscal management over years assisted South Africa to ride the tide of the deep recession. It helped the country to continue with its expenditure plans and, in the process, to act in a counter-cyclical way. However, fiscal policy alone cannot be expected to successfully address South Africa’s challenges. Whilst macroeconomic policy can go a long way in creating a favourable macro-economic environment, it is important that successful implementation of the micro-level programmes and projects generate tangible outcomes.

The clarification of Government’s stance on certain key macroeconomic issues provides a degree of certainty and predictability, and will further support both consumer and business confidence. The details of the new growth path were not included in this year’s MTBPS, although many of the proposed aspects are already part and parcel of the MTEF. The debates and consultations which will generate greater detail on a new growth path will be an important opportunity to consider alternatives and to secure broad ownership of a truly developmental framework.

The Committees and most commentators commended the Minister of Finance on a balanced approach that was followed in the 2010 MTBPS.

1. Committee Recommendations Having considered the 2010 MTBPS and conducted hearings on the 2010 MTBPS, the Select Committee on Finance recommends that:

11.1 The Minister of Finance should provide Parliament with details on how National Treasury will supplement the proposed New Growth Path. These details to form part of the 2011 National Budget in February 2011

11.2 The Minister of Finance considers providing details on how the State plans to design and fund the much-needed universal health care system. This information may be included in the 2011 National Budget in February 2011.

11.3 The Minister of Finance provides more and updated details on how South Africa is dealing with an appreciating Rand. This information to be included in the 2011 National Budget in February 2011.

11.4 The Minister of Finance should provide Parliament with details on proposals to address corruption in the public financial system.

11.5 The Minister of Finance should provide Parliament with a progress report on the proposed wage subsidy as promised in March 2010.

11.6 The Minister of Finance should provide Parliament with further details on promoting small businesses.

1. Oral Submissions

Table 4 (below) contains a list of people who made oral and/or written submissions before the Committees, some in their personal capacity.

     Table 4: List of Submissions’ People |Name               |Position              |Organisation    | |Mr. Pravin J.      |Minister of Finance   |National        | |Gordhan            |                      |Treasury        | |Mr. Nhlanhla Nene  |Deputy Minister of    |National        | |                   |Finance               |Treasury        | |Mr. Lesetja.       |Director-General      |National        | |Kganyago           |                      |Treasury        | |Mr Oupa Magashula  |Commissioner          |SARS            | |Mr. Kenneth Brown  |Deputy                |National        | |                   |Director-General:     |Treasury        | |                   |Intergovernmental     |                | |                   |relations             |                | |Mr. Andrew         |Deputy                |National        | |Donaldson          |Director-General:     |Treasury        | |                   |Public Finances       |                | |Mr Lumkile Mondi   |Chief Economist       |Industrial      | |                   |                      |Development     | |                   |                      |Corporation     | |                   |                      |(IDC)           | |Mr. Dawie Roodt    |Chief Economist       |Efficient       | |                   |                      |Financial       | |                   |                      |Holdings        | |Prof. Raymond      |Deputy Chief Executive|BUSA            | |Parsons            |                      |                | |Ms. Simi Siwisa    |Director: Economic    |BUSA            | |                   |Policy                |                | |Mr.Coenraad        |Parliamentary Officer |Business        | |Bezuidenhout       |                      |Parliamentary   | |                   |                      |Office          | |Ms.Prakashnee      |Parliamentary Officer |COSATU          | |Govender           |                      |                | |Mr. Sidney Kgara   |Parliamentary Officer |PBC             | |Mr. Woody Aroun    |Parliamentary Officer |PBC             | |Mr. Dennis George  |General Secretary     |PBC             | |Mr. Len Verwey     |Budget Manager        |IDASA           |

The written submissions by the above-mentioned organisations are available on request from the Committee Secretariat.

1. References

BUSA, (2010), Medium Term Budget Policy Statement: Presentation to the portfolio Committee on Finance, Cape Town, 10 November 2010.

COSATU, (2010), COSATU Expectations on the Medium Term Budget policy Statement, Cape Town, dated 10 November, 2010.

George, D. (2010), Powerpoint presentation on FEDUSA 2010 Medium Term Budget Policy Statement Comments. The Joint Portfolio Committee on Finance, dated 11 November 2010.

George, D. (2010), FEDUSA Submission on the 2010 Medium Term Budget Policy Statement, Cape Town, 11 November 2010.

Gordhan, P. (2010), Medium Term Budget Policy Statement 2010’s Speech, Parliament of RSA, Cape Town, 27 October 2010.

IDASA, (2010), Perspectives on the 2010 MTBPS. A Presentation to the Finance Committees, Cape Town, 11 November 2010.

Mondi, L. (2010), Impact of reforming exchange rate system on economic policy & broader policies: Some thoughts. A presentation to the Standing Committee on Finance and Select Committee on Finance, dated 10 November 2010.

National Treasury, (2010) Medium Term Budget Policy Statement, Pretoria: Government Printers. National Treasury, (2010), Medium Term Budget Policy Statement: Presentation to Parliament, Cape Town, 28 October 2010.

NUMSA, (2010), Submission to the Joint Meeting of the Standing Committee on Finance & Select Committee on Finance, (National Assembly and National Council of Provinces): The Treasury and SARB are failing to manage our economy to promote growth and development- we need much lower interest rates and tighter exchange controls!

PBC, (2010), Submission of the Peoples Budget Coalition to the Standing Committee on Finance and Select Committee on Finance on the Medium Term Budget Policy Statement, dated 10 November 2010.

Roodt, D. (2010), The new Keynesian world and the MTBPS. A Presentation to the Standing Committee on Finance and Select Committee on Finance, dated 10 November 2010.

Verwey, L.; T. Dlamini, S. Durham, J Sylvester, and M. Zamisa, (2010), The 2010 Medium-Term Budget Policy Statement: Determining the limits of the possible: A closer look at the 2010 MTBPS. PIMS Budget paper 8, Idasa.

Report to be considered.

                      FRIDAY, 19 NOVEMBER 2010

COMMITTEE REPORTS

National Council of Provinces

1. Report of the Select Committee on Education and Recreation on the Higher Education Laws Amendment Bill [B 24B– 2010], dated 18 November 2010

   The Select Committee on Education and Recreation, having considered the subject of the Higher Education Laws Amendment Bill [ B 24B- 2010] , referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports that it has agreed to the Bill.

   Report to be considered

2. Report of the Select Committee on Education and Recreation on the Skills Development Levies Amendment Bill [B 25– 2010], dated 18 November 2010

   The Select Committee on Education and Recreation, having considered the subject of the Skills Development Levies Amendment Bill [B 25– 2010], referred to it, and classified by the Joint Tagging Mechanism as a section 75 Bill, reports that it has agreed to the Bill.

   Report to be considered

3. Report of the Select Committee on Education and Recreation on the Higher Education and Training Laws Amendment Bill [B 26B– 2010], dated 18 November 2010

   The Select Committee on Education and Recreation, having considered the Higher Education and Training Laws Amendment Bill [B 26B– 2010], referred to it and classified by the Joint Tagging Mechanism as a section 76 Bill, reports that it has agreed to the Bill.

   Report to be considered