Municipal Fiscal Powers and Functions Amendment Bill: National Treasury briefing on proposed technical amendments & adoption

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Finance Standing Committee

05 December 2023
Chairperson: Ms P Abraham (ANC) (Acting)
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Meeting Summary

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The Standing Committee on Finance received a briefing from the National Treasury on the proposed technical amendments to the Municipal Fiscal Powers and Functions Amendment Bill.

National Treasury had identified some technical mistakes with the Bill after the National Assembly had adopted it.

Notwithstanding the DA’s reservations, the Committee agreed with the amendments proposed in the Bill as reflected in the C list of the Bill.

The Committee adopted the amended bill.

Meeting report

Mr J Maswanganyi (ANC) welcomed all the committee members to the meeting, National Treasury, the committee support team, and everyone on the platform.

There was an apology noted from Dr George (DA).

He requested that Ms P Abraham (ANC) should chair the meeting on his behalf, as he was experiencing connectivity issues.

Ms Abraham took the Committee through the agenda. National Treasury would brief the Committee on the proposed technical amendments to the Municipal Fiscal Powers and Functions Amendment Bill (MFPFAB).

National Treasury Presentation
Ms Wendy Fanoe, National Treasury, Intergovernmental Policy and Planning, introduced the delegation from the National Treasury. She highlighted that the National Treasury had previously presented the Municipal Fiscal Powers and Functions Amendment Bill to the Committee and it was approved, and the entity also presented to the Select Committee on Finance. During that process, there were inputs made by various stakeholders, including the City of Cape Town, and these suggestions were taken as good suggestions to enhance the legislation.

She highlighted that there was an error picked up in the changes, where the word “not” was used and it completely changed the meaning of the word.

She added that her colleague will present on where the changes have been made for the Committee’s consideration.

Ms Mmachuene Mpyana, Senior Economist, National Treasury, took the Standing committee through the technical refinement made in the MFPFAB.

Clause 1
The definition of development charges was amended. The proposed refinements were made under paragraph (b) where the term “land for parks and open spaces” should be used instead of “open parks and spaces”. She highlighted that the amendment was made to accord with the terminology that has been used in the Spatial Planning and Land Use Management (SPLUMA) Act.

Under paragraph (c) there was a proposal to include “the cost of municipal services other than engineering services”. She explained that the proposed amendment was intended to clarify that a development charge may contribute to the cost of capital infrastructure assets for engineering services; or such cost as well as the cost of land for parks and open spaces in respect of an application for the use of land for residential purposes; or both these costs as well as, if approved by the Minister for municipal services other than engineering services.

The definition of “Capital infrastructure asset” was amended and there was an insertion of “, parks and open spaces or a municipal service”. The provisions should read as follows: “‘capital infrastructure asset’ means land, property, building or any other immovable asset, including plant and equipment that accede thereto, which is required for the provision of an engineering service, parks, and open spaces or a municipal service;”.

Clause 4
There was a technical refinement under Section 9G (7), the word “not” was omitted. There was a typographical error and it therefore made the intention of Subsection (7) incorrect.

Under Section 9(I), the City of Cape Town proposed that it should be specified that “the municipality and the applicant must agree that the service be regarded as an external or internal engineering service; or (b) if the municipality and the applicant do not agree as contemplated in paragraph (a), the municipality’s determination applies”

(See Presentation)

Discussion
Mr G Masualle (ANC) stated that the amendments are straightforward and they do not warrant a debate. He acknowledged the amendments made by the National Treasury.

The Chairperson agreed with the committee member. It was just technical mistakes that have been corrected.

She asked if there was a mover to accept the amendments.

Ms S Mabiletsa (ANC) moved for the adoption of the amendments.

Mr Masualle seconded.

Mr J De Villiers (DA) indicated that the Democratic Alliance would like to reserve its position on the amendments.

MFPFAB C and D lists
The Committee Secretary, Mr Allan Wicomb, took flighted the A-List with all the proposed amendments. He stated that the members also received the D-version of the Bill which includes all the amendments.

The Chairperson asked for a member for the whole bill.

Mr Maswanganyi moved.

Ms Mabiletsa seconded.

The Committee members moved for the adoption of the amended Bill.

Mr De Villiers asked that the reservations of the DA should be noted.

The meeting was adjourned.

 

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