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FINANCE SELECT COMMITTEE
26 August 2003
FINANCIAL AND FISCAL COMMISSION AMENDMENT BILL: FINAL MANDATES AND ADOPTION
Chairperson (Acting): Dr E Conroy
Documents handed out:
Financial and Fiscal Commission Amendment Bill [B21B-2003]
Provincial Mandates (Appendix 1)
NCOP Proposed Amendments on the FFC Amendment Bill (Appendix 2)
The provincial final mandates were presented: eight provinces supported the Bill with the proposed amendments. Mpumalanga abstained as it stated that it had not received the redrafted Bill in time.
The Chairperson welcomed the meeting and proceeded with mandates.
Mr Setona (ANC) presented for the Free State and supported with amendments.
Mr Durr (ACDP) said the Western Cape supported with amendments.
Mr Kolweni (ANC) said North West supported with amendments.
The Chairperson spoke for the Northern Cape and supported the Bill.
Mr Tolo (ANC) said that Mpumalanga had received the redrafted Bill only on 22 August and had not had enough tome to meet and discuss the redrafted Bill. Consequently it abstained on behalf on the province.
The Chair accepted Mpumalanga's abstention.
Members led by Mr Durr of the Western Cape objected that Mpumalanga was not following procedure as enough time had elapsed since the Bill had been sent to provinces on 22 August.
Gauteng province was also not prepared and was in a similar position to Mpumalanga. The Gauteng Committee clerk stated that the Gauteng Finance Committee was sitting at this very moment to review the redrafted Bill and it would make their mandate available as soon as they had reached a decision. However she could provide an unadopted mandate in which they supported the Bill as redrafted.
Members agreed to accept the Gauteng mandate.
The Committee agreed to accept the Bill with amendments and to formulate a statement for the plenary adoption of the Bill instead of holding a debate on the Bill.
FINAL MANDATES: FINANCIAL AND FISCAL COMMISSION AMENDMENT BILL
The following provinces supported the Bill with amendments:
Guateng Province (unadopted mandate)
Limpopo province raised the concern that paragraph 4 bullet 2 was not a reflection of discussions in the meeting of 22 August 2003.
Mpumalanga province abstained from proceedings as they were unable to meet to consider the redraft of the Bill which they received only on 22 August 2003
AMENDMENTS OF THE SELECT COMMITTEE ON FINANCE N THE FINANCIAL FISCAL COMMISSION AMENDMENT BILL, 2003 (B21 B - 2003)
1. On page 2 after line 12 insert the following subsections
(2C) If the Commission fails to respond to any request within 90 days from the date of receipt of the notification and request contemplated in section 2(A) (a) or such period agreed with the relevant organ of state, the Commission must provide reasons to Parliament and any appropriate legislature for such failure.
2. (2D) Before requesting the recommendation or advice of the Commission, the organ of state seeking to assign such power or function must seek the written approval of the Treasury in that relevant sphere of government.
2. On page 2 at line 21 insert the following subsections after "has taken account"-
the impact of the assignment on the future division of revenue between the spheres of government including the Act and criteria required in terms of section 214 of the Constitution;
the impact of the assignment on fiscal powers, capacity and efficiency of he provinces and municipalities receiving the new power or function;
the impact of the assignment on the transfer of assets and liabilities; and
the measures established in terms of national legislation to promote and enforce transparency and effective financial and fiscal management.
3. On page 3 in line 5 after 'measures' insert ' contemplated in (i) (ii) and (iii) of paragraph (c)'
On page 4 at line 5 substitute the rest of the sentence after 'statements 'with as required by the Public Finance Management Act, 1999 (Act No.1 of 1999)
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