Division of Revenue Amendment Bill [B17-2011]: Final Mandates; Report on Medium Term Budget Policy Statement
Meeting Summary
The Committee reviewed the Report on Medium Term Budget Policy Statement (MTBPS) and members raised issues of lack of technical capacity in the municipalities affecting the performance of the External Public Works Programme. The report was adopted with amendments.
The Committee adopted the minutes from 15 November 2011 with amendments.
Meeting report
Opening Remarks
The Chairperson opened the meeting and stated that a draft report was circulated to Committee members on Tuesday the 15th of November. Apologies were offered on behalf of Mr P Zulu (IFP,
Division of Revenue Amendment Bill: Final Mandate
The Chairperson tabled the Final Mandate: The Division of Revenue Amendment Bill and requested the delegates from all 9 provinces to read out the mandates from their respective legislatures.
Eastern Cape Provincial Legislature
Mr S Mazosiwe (ANC,
Free State Provincial Legislature
Mr D Bloem (COPE,
Gauteng Provincial Legislature
Mr C De Beer (ANC,
Kwazulu-Natal Provincial Legislature
Mr A Lees (DA,
Limpopo Provincial Legislature
Mr M Makhubela (COPE, Limpopo) voted in favour of the Bill without amendments
Mpumalanga Provincial Legislature
Mr B Mashile (ANC,
Northern Cape Provincial Legislature
Mr De Beer informed Members that the Legislature supported the Bill without amendments.
North-West Provincial Legislature
The Chairperson noted that Legislature voted in favour of the Bill.
Western Cape Provincial Legislature
Mr J Bekker (ANC,
The Chairperson noted that all provinces voted in favour of the Bill without further amendments.
The Chairperson returned to the point that Mr Mashile had raised in the previous meeting during the negotiating of the Mandate. Mr Mashile had requested National Treasury to follow up on concerns from
Ms Wendy Fanoe, Chief Director: Intergovernmental Policy and Planning, National Treasury stated that there were two issues around the
Mr Mashile welcomed the explanation by National Treasury. However this was a situation where the relief was necessary and necessary accommodative action needed to be taken.
Report on Medium Term Budget Policy Statement
The Committee reviewed the Report on Medium Term Budget Policy Statement (MTBPS)
The Chairperson proposed that the Committee go through the report page by page and make additions, correction and deletions if necessary. The Committee reviewed the draft of the Report on Medium Term Budget Policy Statement page by page and made a number of grammatical and syntax changes to phrases that needed minor rewording grammatical and syntax correct.
Mr Lees noted that throughout the document it needed to be indicated whether the adjustments made were up or down.
Mr Mashile stated that specific grants available for cities with technical the capacity were affected by performance related to issues of compliance. Mr Mashile asked how the debate on the helpfulness of the grants was captured. The South African Local Government Association raised this same issue. In his view the Grant was biased and did not help democracy.
The Chairperson suggested that the point would be taken under further observation.
Mr Mashile stated that there was a lack of clarity on the issue itself, because in smaller municipalities there was a lot of work taking place in the Expanded Public Works Programme (EPWP).
The Chairperson stated that the reality was that most municipalities did not benefit from the Grant because they did not have the technical capacity.
Mr Mashile stated that municipalities who lacked capacity but had compliance still struggled to complete their projects. It was a well-intended grant, but what was the point?
Mr Mazosiwe suggested adding another sentence to the report that reflected the point that Treasury should assist smaller municipalities with technical capacity in a manner that benefited all municipalities.
Mr Lees agreed with Mr Mazosiwe’s suggestion.
Ms Fanoe pointed out that the Standing Committee on Appropriations also dealt with the same issue. She added that the allocation criterion was different for larger and smaller municipalities. The allocations were based on size of the respective Municipal infrastructure Grant.
Mr Mazosiwe proposed adoption of the report with amendments.
Mr De Beer seconded the adoption.
Mr Lee also seconded the adoption of the report
The Chairperson stated that he would engage with other actors and there would not be a debate on the division of revenue but rather a statement would be issued.
Adoption of Committee Minutes
The Chairperson tabled minutes of 15 November 2011.
Mr De Beer proposed adoption of the minutes with amendments.
Mr Bekker seconded the adoption.
Mr Mazosiwe also seconded the adoption.
The Chairperson adjourned the meeting.
Present
- We don't have attendance info for this committee meeting
Download as PDF
You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.
See detailed instructions for your browser here.