Parliament Budget Speech (NA Speaker & NCOP Chairperson)

Briefing

22 Jul 2024

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SPEECH OF THE CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES, HONOURABLE REFILWE MTSHWENI-TSIPANE, ON THE OCCASION OF THE POLICY DEBATE ON BUDGET VOTE 2 (PARLIAMENT)
 
 
Honourable Deputy Chairperson;
 
Honourable House Chairpersons;
 
Honourable Chief Whip;
 
Honourable Permanent and Special Delegates;
 
Representatives of the South African Local Government Association;
 
Ladies and gentlemen
 
Good afternoon
 
 
1. INTRODUCTION
 
I wish to begin my address by asserting the importance of maintaining critical pathways of cohesion and consensus building amongst ourselves, not only for today’s debate but also for the countless robust deliberations that are to follow in this House. As we do so, may we be guided by the spirit of our icon Nelson Mandela whose birthday month we are celebrating.
 
It is my sincere wish, that we will collectively advance the electoral mandate of this 7th administration, with integrity, ethics and respect of our oath of office. May these wise words give credence to what we have been called to accomplish:
 
“The things that will destroy us are:
 
Politics without Principle;
Pleasure without Conscience; 
Wealth without Work; 
Knowledge without Character; 
Business without Morality; 
Science without Humanity;
and Worship without Sacrifice.
 
May these values and principles guide us as we move forward in unity, to advance South Africa’s national interest. May these remain as the defining precepts for the current conjuncture of our constitutional democracy.

Honourable Deputy Chairperson, it is almost two months since South Africans, participated in the 2024 provincial and national elections, ushering in the 7th administration, as part of the democratic order established in 1994.  
 
As you are all aware, no single political party received majority support at national level. As such, a Government of National Unity (GNU) has been formed, through a statement of intent, that seeks to promote cooperation in both the Executive and Parliament under the stewardship of His Excellency the President of the Republic of South Africa, Mr Cyril Ramaphosa.
 
Many would agree that South Africa finds itself in unchartered territory as we now familiarise ourselves with the spirit, purport and alignment of the GNU. With each passing day, we find ourselves at  the centre of a steep learning curve, about the impact and importance of a construct such as the GNU.
 
Indeed, the advance to govern in the context of the GNU construct of governance, is undoubtedly a complex process.
 
However, we now have the opportunity to formulate the most appropriate regulatory frameworks and legislative instruments, to advance our national and developmental interests.
 
30 Years of Democracy
 
Hon Delegates, As we celebrate 30 years of our constitutional democracy, we recall today that our Constitution has laid the foundation for a democratic and open society, in which government is based on the will of the people.
 
As we advance in unity, to achieve the ideals of our forebearers and as postulated by the electoral mandate of the 7th dispensation, this season requires visionary and pragmatic leadership.
 
New and robust ways must be constructed, to enhance public sector reforms, build state capacity, to improve public-private partnerships and build a corruption free governance system.
 
2. CURRENT AND EMERGING ISSUES THAT ARE INFLUENCING THE WORK OF PARLIAMENT

Honourable Deputy Chairperson, the work of Parliament is influenced by several developing trends within the global, continental, regional and national contexts.

These include the effects of evolving democracies, geo-political tensions, uneven global economic growth, increased expectations and demands, climate change, and societal risks such as pandemics.

In so far as the African Economic Context is concerned

According to the African Outlook 2024, despite strong economic performance and remarkable resilience, structural transformation in Africa has been slow and uneven.

Addressing this will require the activation of bold reforms of the global financial architecture, to meet Africa’s development financing needs without the nefarious intentions of imposing debt at the expense of sustainable economic growth.
 
Regional Economic Context

The sluggish performance is said to reflect the ongoing slow economic growth in South Africa, which is the SADC region’s largest economy. Growth in the SADC region is projected to increase marginally to 1.1 percent in 2024 and 1.6 percent in 2025.
Whereas in South African Economic Context

It is clear that due to slow economic growth over an extended period of time in South Africa, (which accounts for 60 percent of the SADC region’s total output), is as a result of ailing physical and social infrastructure, as well as the impact of the past electricity crisis.

These prevailing conditions are also said to have lowered the productive capacity of firms, and constrained domestic demand.
 
This economic situation has also aggravated South Africa’s persistently high unemployment rate, high levels of poverty and inequality and prevented us from reaping substantive democratic dividends in the last 30 years of freedom and democracy in South Africa.
 
As we reflect on these stark realities, we must also acknowledge that South Africa does not function or exist in a vacuum.  
 
We must therefore acknowledge that our national development landscape is indeed impacted upon by external geopolitical tensions, exogenous economic shocks, which still profoundly continue to shape developmental conditions in South Africa.
 
As we seek the appropriate policy and legislative balance to address the challenges faced by our nation, we must refocus our attention on the imperatives of the Economic Reconstruction and Recovery Plan, as a critical instrument to advance economic recovery and inclusive economic growth.
 
Within this context, Parliament must play the critical role of overseeing a steady focus on the country’s economic policy and implementation trajectory, to enable a radical shift towards the achievement of our inclusive economic growth priorities.

Poverty and Inequality

Honourable Deputy Chairperson, according to a World Bank Report, which was co-authored with Stats SA, South Africa is said to be the most unequal society in the world, with "race" playing a key role in a society, where 10% of the population owns more than 80% of the wealth.

South Africa also ranks first among 164 countries, which is a clear indication of the developmental pressures the broader state machinery must contend with.
 
When we look at this overarching national context, the role of Parliament must be repositioned as critical during the current conjuncture of our developmental journey, to effectively oversee the implementation of our national goals.
 
It is therefore imperative that we strengthen Parliament’s accountability mechanisms and systems, so as to enable this arm of state to assert itself more appropriately, within the confines of its constitutional mandate.

3. KEY ACHIEVEMENTS OF PAST FINANCIAL YEAR AND WAY FORWARD
 
Hon Deputy Chair, Despite the challenges of lack of adequate working space and a decreasing budget, the NCOP, through its plenaries and committees, continued to adapt business processes with physical and hybrid proceedings.  
29. Several key pieces of legislation were processed to address various aspects of national governance and public welfare, including:
• The Division of Revenue.
• The Appropriation Bill.
• The Children's Amendment Bill.
• The Public Service Amendment Bill.
• The National State Enterprises Bill.
• The Marriage Bill,
• The Electoral Commission Amendment Bill and the Constitution Nineteenth Amendment Bill.
 
With regard to oversight, Parliament continued to enhance measures for greater accountability and oversight over the Executive.  

High rates of reply for both oral and written questions put to the Executive in the two Houses highlight the effectiveness of parliamentary oversight in ensuring government responsiveness. The NCOP directed a total of 970 written and oral questions to the Executive.

In keeping with the provisions of the Constitution in relation to public involvement, about 255 public hearings were held, including collaborative efforts with Parliamentary Constituency Offices and local entities.  Several petitions were considered by Parliament.

As Delegates are aware, co-operative government and intergovernmental relations are the twin sisters of our system of government. Therefore, collective planning on matters of common interest is crucial to avoid one sphere usurping the powers of another.
 
It is for this reason that the NCOP will continue to place greater emphasis on monitoring the effectiveness of interventions. Interventions should be the last resort after other support measures have failed.
 
Therefore Hon Delegates, in whatever we do, we must ensure that provincial interests are taken into consideration in the national sphere of government.
 

As such, when designing our programmes we must take into consideration the programmes of the provincial legislatures. We must also ensure that there is co-operation, consultation and coordination between the two Houses of Parliament, provincial legislatures and organised local government.
 
With regard to international engagement, in the past financial year Parliament considered nine crucial international agreements, in accordance with section 231 of the Constitution. These agreements encompassed a wide array of topics, including gender equality.
 
We will continue to strengthen parliamentary diplomacy in pursuit of a better Africa and a humane, just, equitable, democratic and free world. This includes through ensuring that the SADC-PF becomes a fully-fledged Parliament, stabilising the Pan-African Parliament and taking our participation at the BRICS Parliamentary Forum to a new level.
 

4. CONTEXT FOR VOTE 2

Hon Dep Chair, This year’s budget is set against the backdrop of declining budgets in the state. In addition to the reduced budget, the composition of Vote 2 carries structural challenges, skewing the appearance of resource availability.  

Whereas the overall budget appears to be significant for 2024/25, the amount available for discretionary allocation is small.  The Accounting Officer has limited control over the following allocations in the budget:
a) Direct charge for Members’ remuneration;
b) Transfers to political parties;
c) Parmed payments;
d) Facilities for Members;
e) Benefits for former Members;
f) Salary adjustments decided by the sector bargaining process; and,
g) Contingent liabilities.

Over time, the composition of the budget should be reviewed to reflect the availability and use of resources in a more accurate way. Also, a new approach to budgeting and appropriation will be needed to ensure that Parliament is sufficiently funded.

5. VOTE 2

Honourable Members: The total budget for Parliament for the 2024/25 financial year is R 4,436 billion.

The total allocation received from the National Treasury amounts to R3,263 billion, and includes R500 million for the restoration and refurbishment of the Parliamentary buildings because of the fire damage.
 
The shortfall will be funded by institutional retained earnings of R101,8 million - retained earnings for rebuilding of Parliament of R998 million, donor funding of R22,5 million and own revenue of R50 million.

The National Treasury allocation for compensation of employees amounts to R939 million, whilst the projected expenditure is R1,356 billion.

The allocation by National Treasury for the contribution to medical aid of former Members of Parliament and Provincial Legislatures amounts to R68 million, whilst the projected expenditure is R80 million.

Baseline budget reductions of the medium term are causing significant strain on the budget of Parliament. In addition, inflation is expected to remain higher, driving up the cost of Parliament’s goods and services.

The budget of Parliament has been allocated as follows:
o Programme 1: Administration - R2,284 billion;
o Programme 2: Legislation and Oversight - R867 million
o Programme 3: Associated Services and Transfer Payments to Political Parties - R791 million.
 
The 2024/25 vote for Parliament was prepared during the term of the 6th Parliament. The Financial Management of Parliament and Provincial Legislatures Act requires that Parliament develops a new Strategic Plan, within 6 months from the national elections.   
 
The strategic planning process, which will commence shortly, will result in us deciding on priorities and outcomes for the 7th Parliament, and the re-alignment of resources.  

As we begin to crystalise our focus and approach as the NCOP, the following key priorities must inform our institutional agenda, as we commence the seventh dispensation:
We must as matter of urgency, prioritise the workings of the intergovernmental and cooperative governance systems to deliver services, with the intention of not only focussing on interventions after service delivery systems have completely collapsed at the provincial and local spheres of government.
 
We will institutionalise Three-Sphere Planning processes in the NCOP and effectively utilise the three sphere developmental data provided, to strategically shape the NCOP’s Oversight Agenda.

Infused together with the Three-Sphere Planning mechanism, we must deliberately accentuate the planning imperatives of the District Development Model, as a springboard to advance the planning and implementation of key development priorities;
 
We must ensure that Sector Parliaments continue to play the dynamic and developmental role, with better oversight, tracking and impact assessment mechanisms to advance South Africa’s transformation agenda;
 
We must institutionalise Policy and Legislative Review Processes, in order to consistently test the impact and efficacy of the policies and legislation passed by Parliament;
 
We must also Build Dynamic Public Participation Processes and Systems to give better effect to the values and principles of public participation.
 
We must further create the appropriate systems to enable online petitions and where online access is not possible in rural areas, we must create the appropriate systems for rural communities to submit their petitions.
 
The recommendations of the Chapter 9 instituitions must be standard items for the Executive to report on progress made in implementing these recommendations and Parliament must meticulously track and oversee this process;
 
In order to support the NCOP more effectively, Parliamentary Researchers must be involved in communities or find other sources of research data and rely less on reports from Government;
 
We must review the programme structure of Parliament to allow for more time for plenaries, committees, and work performed in constituencies.
 
Whilst the restoration of the parliamentary buildings remains one of the focus areas for the 7th Parliamernt.
 

6. CONCLUDING REMARKS
 
In conclusion, Hon Dep Chair, whilst being mindful of the strain on the budget of Parliament, which is a consequence of declining resources in the state, we need to set our priorities in a manner that will enhance Parliament’s effectiveness and responsiveness.
 
I hereby table the budget for the 2024/25 financial year for approval by this august House.
 
Thank you

 

 

_________________________________________________________________________________________________________________________

 

 

HON. THOKO DIDIZA, MP SPEAKER OF THE NATIONAL ASSEMBLY
 
 
 Honourable House Chairperson, Frolick
Honourable Members of the National Assembly
Ladies and Gentlemen
 
 
The role of Parliament is important in the life of the nation. It is a representative body that carries the hopes and aspirations of the people. It is a body that develops new laws, amends existing ones and repeals those that are no longer needed. It is a body that holds the government to account for executive action. It is an instrument that ensures that public resources are spent efficiently by the government to address the needs of people.
 
Parliament is an instrument that is at the disposal of citizens through which they can influence policy and legislation. When one reflects on the important role of Parliament, one will appreciate why those freedom-loving South Africans in 1955, in Kliptown, when adopting the Freedom Charter ensured that one of the first clauses would call for citizens' participation in their governance and said “The people shall govern”.
 
Our democratic dispensation in 1994 and the finalisation of our constitution in 1996 created a framework in which we now have a legislative arm of the State whose critical role will be that voice of our citizens. As we celebrate the thirty years of freedom, we can look back at the achievements that this House has been able to make. Transformative legislation that has changed the lives of our people for the better has been crafted and passed by this Parliament.
It is through the interventions of those who went before us as pioneers of building this legislature, that we have transparency such that our nation and beyond may have an opportunity to follow the debates that touch their lives and also observe how their representatives are engaged in ensuring that their lives are made better than they were before.
 
In the creation of this Parliament, those who went before us fully understood that accessibility and transparency would be meaningful if their culture and languages would find expression in these very walls and corridors of power. In the past week, this matter has been highlighted when there were some challenges regarding interpreting services. I want to assure honourable members that we will address this matter. Similarly, the Executive will have to ensure that bills that are tabled in Parliament also reflect the appreciation of the respect of all our languages.
 
Honourable Chairperson and honourable members, public participation is the bedrock of how we engage our citizens to ensure that their views are taken on board in law-making, policy formulation and other important decisions that this Parliament takes. We have had sectoral Parliaments, petitions; Parliament meets the people as well as public hearings. These engagements help us to deepen engagements with citizens.
 
Thirty years has given us an opportunity to look back also on our weaknesses and things that must be changed for us to continue to solidify what we had conceived as an activist Parliament. The mini-plenaries where members discuss critical issues do help us to address issues of concern that come from members given their experiences in communities.
 
Honourable members, in order to ensure that Parliament undertakes its oversight responsibility over the Executive, timeous tabling of documents will assist committees in deliberating on issues brought before them. It will also be critical to ensure that engagement with the executive is improved and that the quality of responses to questions posed to the executive assists. In the previous administration we have acknowledged that where Ministers are unable to attend a portfolio committee or be available to answer questions, Deputy Ministers will be available to undertake this work. This decision remains important in order to ensure that oversight work takes place.
 
Honourable members, the sixth administration started the engagement with the National Treasury to address the funding model of Parliament. Careful consideration of our budget will show that it has been declining over time which has had a negative impact on the work of Parliament. The burning of Parliament has added more strain and has affected its effectiveness.
 
House chairperson, honourable members, we have appreciated the issues raised by members towards the end of the sixth administration about looking for alternatives that will allow the full sitting of Parliament until the rebuilding of the new chamber is completed. Last week Friday, I held a meeting with the Minister of Public Works to explore the possibility of getting a dome that has been used by the state for big events previously, like the funeral of late President Mandela. The Minister has indicated to us that the dome is available and the department and Parliament will meet again on Thursday to conclude on this matter. Should we become successful, this step, while it is temporary will go a long way in ensuring that Parliament undertakes its business effectively.
 
We want to indicate to members that the reconstruction of the new chamber is on course. On Thursday, we will have an engagement with the Public Works and Development Bank of Southern Africa (DBSA) to look at the timelines for the completion of this work. Members will be briefed through appropriate structures on the progress.
 
As we opened the 7th Parliament, we have experienced challenges of committees not being able to conduct their business due to space availability. While we have tried to improve, this remains an ongoing challenge that we must address. The availability of space for offices of members is another point that going forward we must address.
 
House Chairperson, Honourable members, building the capacity of members is critical for them to engage in meaningful work of Parliament. The initial onboarding and training of members has been necessary, however, we do need to ensure that members are fully given enough tools to do their work. Subject-specific training is necessary to capacitate members. The constituency offices must be a dynamic link between citizens, the legislature and the government. The sixth administration has ensured that such offices have both an administrator and a field worker, we need to look at how best we can improve including the use of digital technologies.
 
Honourable Chairperson, Chapter Nine and Ten Institutions are critical in supporting our democracy. The work they do and their recommendations which are tabled in Parliament must be reflected upon and implemented by Parliament.
 
Chairperson during the induction of members of Parliament as well as in the Rules Committee a proposal was made that Parliament must monitor the implementation of reports that are tabled and adopted by this House.
 
Honourable members, parliamentary diplomacy remains an important area of our work. Our participation in the regional, continental and international bodies remains critical to advance our national interests as well as contribute to global peace and development. Honourable members, we will develop ways in which feedback on our engagements is deliberated upon by members to ensure that those who at times become delegates to these forums are well aware of the debates long before they attend.
 
House chairperson, one of our functions is to ratify international treaties and agreements. Going forward, this will require careful consideration by relevant portfolio committees before they are tabled for ratification in the Houses of Parliament. We need to be alive to the implications of such treaties and how they advance our national interest and global peace.
 
House Chairperson, Honourable members, Parliament through its international diplomacy, needs to scrutinise international trends, particularly on international trade and see to what extent can we as Parliament use our parliamentary diplomacy on issues of improving market access issues for our corporate citizens.
 
Chairperson, we need to advance our role in regional and continental structures such as in SADC and the Pan African Parliament, not only in respect of our participation but also in monitoring how our government implements some of the agreements that flow from these structures.
 
House Chairperson, Honourable Members, the tabling of the budget Vote 2 will enable Parliament to focus on the key priorities areas which I have mentioned earlier. However, the Financial Management of Parliament and Provincial Legislatures Act, requires that Parliament develops a new Strategic Plan, within 6 months of the national elections. This process will allow the institution to concretise its priorities and outcomes for the 7th Parliament, and to re-align its resources to priority areas of Parliament.
The 2024/25 budget for Parliament (Vote 2) is set at R4.436b (Four Billion and Four Hundred and Thirty-Six Million). The total allocation received from the National Treasury amounts to R3.263b (Three Billion and Two Hundred and Sixth-Three Millions) and it includes R500 million for the refurbishment of the Parliamentary buildings and facilities.
 
I, therefore, table the Budget Vote 2 for your consideration.
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