Hansard: Minister 's Responses / Members 's Statements/ Consideration of List of Candidates for Appointment to ICASA / Consideration of First Report of Joint Rules /Consideration of Budget Vote No 17 / Consideration of Budget Vote No 19

House: National Assembly

Date of Meeting: 31 Aug 2009

Summary

No summary available.

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Minutes

UNREVISED HANSARD

NATIONAL ASSEMBLY

Tuesday, 1 September 2009 Take: 268

TUESDAY, 1 SEPTEMBER 2009

PROCEEDINGS OF THE NATIONAL ASSEMBLY

_________

The House met at 14:01.

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

NOTICES OF MOTION

Mr J SCHMIDT: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move:

That the House debates the influence of the latest price increases of electricity tariffs, as well as the expected future increases, on the economy of South Africa and the inflation targets of government, and comes up with possible solutions.

Mr P F SMITH

Mr J SCHMIDT

Mr P F SMITH: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:

That there is a need to introduce legislation preventing government before an election from using its position of incumbency to support the ruling party in a manner that unfairly prejudices other parties competing for electoral support.

Mr P F SMITH

Ms D ROBINSON: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

That this House debates the adoption of sign language as the twelfth official language of South Africa and as an official matric subject.

Mr M WATERS

Ms D ROBINSON

Mr M WATERS: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

That the House -

(1) notes that South Africa has the highest prevalence of fetal alcohol syndrome in the world;

(2) further notes that 9 September has been dedicated to increasing awareness of fetal alcohol syndrome; and

(3) debates steps that can be taken to combat this scourge.

Mr L RAMATLAKANE

Mr M WATERS

Mr L RAMATLAKANE: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:

That the House debates the taxi industry's resistance to the implementation of the Bus Rapid Transport system and the implication thereof for the success of the 2010 World Cup.

Mr A C STEYN

Mr L RAMATLAKANE

Mr A C STEYN: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:

That the House debates the decision of the national Department of Human Settlements to replace the waiting list system for qualifying beneficiaries of RDP subsidised housing with a central housing demand database.

Dr W G JAMES

Mr A C STEYN

Dr W G JAMES: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move:

That the House debates the funding formula for institutions of higher learning.

Mr M J ELLIS

Dr W G JAMES

70TH ANNIVERSARY OF WORLD WAR II

(Draft Resolution)

Mr M J ELLIS: Madam Deputy Speaker, I move without notice:

That the House -

[TAKE IN FROM MINUTES]

Agreed to.

Mr M J ELLIS

Mr M J ELLIS

21ST SUMMER DEAF OLYMPICS

(Draft Resolution)

Mr M J ELLIS: Madam Deputy Speaker, I move without notice:

That the House -

[TAKE IN FROM MINUTES]

Agreed to.

Mr M J ELLIS

Mr M J ELLIS

SPRINGBOKS DEFEAT THE WALLABIES

(Draft Resolution)

Mr M J ELLIS: Madam Deputy Speaker, I move without notice:

That the House -

[TAKE IN FROM MINUTES]

Agreed to.

Mr M J ELLIS

Mr M J ELLIS

AMBER-JAY VAN ROOYEN AWARDED THE UNESCO FELLINI MEDAL FOR HER FILM "COMING HOME"

(Draft Resolution)

Mr M J ELLIS: Madam Deputy Speaker, I move without notice:

That the House -

[TAKE IN FROM MINUTES]

Agreed to.

Ms J D KILIAN

Mr M J ELLIS

THE PASSING AWAY OF MRS LANGA

(Draft Resolution)

Ms J D KILIAN: Madam Deputy Speaker, I move without notice:

That the House -

[TAKE IN FROM MINUTES]

Agreed to.

Ms J D KILIAN

Ms J D KILIAN

CONGRATULATIONS TO POLICE ON THEIR RECOVERY OF BABY SNATCHED FROM TYGERBERG HOSPITAL

(Draft Resolution)

Ms J D KILIAN: Madam Deputy Speaker, I move without notice:

That the House -

[TAKE IN FROM MINUTES]

Agreed to.

The CHIEF WHIP OF THE MAJORITY PARTY

Ms J D KILIAN

IMPLEMENTATION OF PROVISIONS IN RULES FOR FIRST READING DEBATES ON BILLS INTRODUCED IN THE ASSEMBLY

(Draft Resolution)

The CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move the draft resolution printed in my name on the Order Paper, as follows:

[TAKE IN FROM MINUTES]

Agreed to.

The CHIEF WHIP OF THE MAJORITY PARTY

The CHIEF WHIP OF THE MAJORITY PARTY

AMENDMENT OF ASSEMBLY RULE 109

(Draft Resolution)

The CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move the draft resolution printed in my name on the Order Paper, as follows:

[TAKE IN FROM MINUTES]

Agreed to.

Mr H P MALULEKA

The CHIEF WHIP OF THE MAJORITY PARTY

CONSTITUTIONAL RIGHT TO PROTEST

(Member's Statement)

Mr H P MALULEKA (ANC): Madam Deputy Speaker, section 17 of the Constitution of the Republic of South Africa, Act 108 of 1996, says the following with regard to protest:

Everyone has the right, peacefully and unarmed, to assemble, to demonstrate, to picket and to present petitions.

This is a right enshrined in our Constitution and many South African patriots laid down their lives in order for all of us to be able to enjoy it. However, the recent developments regarding protests that have taken place in our country are in direct contravention of this noble section of our Constitution.

The ANC upholds the right of every citizen to protest for whatever reason. However, this right cannot be exercised at the expense of law-abiding citizens who have an equal right to safety. The ANC welcomes the decision taken by our government on Wednesday, 26 August 2009.

The Cabinet pronounced that law-enforcement agencies will not hesitate to take strong actions against those taxi operators who have threatened to disrupt with acts of violence the implementation of the Bus Rapid Transit system. It further said that threats of violence and actual violent conduct are viewed in a serious light and will not be tolerated.

The ANC calls on all our people to condemn in the strongest possible terms any unruly element which seeks to exploit the genuine concerns of our people to meet their own selfish ends. I thank you.

Mr A C STEYN

Mr H P MALULEKA

EXCESSIVE EXPENDITURE ON MOTOR VEHICLES BY SENIOR POLITICIANS AND EFFECTIVE MONITORING THEREOF BY DEMOCRATIC ALLIANCE

(Member's Statement)

Mr A C STEYN (DA): Madam Deputy Speaker, over the last number of weeks the excessive expenditure by some ANC Ministers, Premiers and MECs across the country on, particularly, vehicles, for use in execution of their duties, has led to outrage by the general public.

By contrast, the DA in the Western Cape provincial government has led by example. The Premier and MECs are using vehicles available from the government garage. In addition, the DA has put forward some austeritymeasures for consideration by the President, and launched a Wasteful Expenditure Monitor on 26 July.

I am therefore pleased to acknowledge that the DA's oversight role in this regard and public pressure on such a wasteful expenditure has resulted in the cancellation of two new vehicles, a Mercedes Benz and a BMW, by the Deputy Minister of Human Settlements, the hon Z A Kota-Fredericks. She has instead chosen to retain the vehicles used by the previous Minister, Minister Sisulu.

In addition, the Minister of Human Settlements, Minister Sexwale, has chosen not to purchase any new vehicle, but to use his personal transport, and, to date, he has not submitted a claim for the official use of such transport. Naturally, not all Ministers are in the fortunate position to do this. However, both Ministers must be commended for heading the call to contain unnecessary and extravagant spending in the current economic climate. I call on other members of the executive to follow their example. Thank you

Mr L RAMATLAKANE

Mr A C STEYN

CLASHES BETWEEN SANDF AND POLICE

(Member's Statement)

Mr L RAMATLAKANE (COPE): Madam Deputy Speaker, the recent events of the SANDF soldiers protesting, striking and rampaging through the Union Buildings, are a matter of great concern to the public, and should be to the members of this House.

Given the power of the Minister of Defence and Military Veterans, these events are as a result of her failure to act in line with regulations governing defence and be more sensitively to the issue raised by the soldiers.

Nonetheless, her failure is no excuse for the ill-discipline displayed by the soldiers who were tasked with protecting our Constitution and the people of South Africa.

The silence of the commander in chief of defence, President Jacob Zuma, is of concern. We want to hear from the commander in chief in this regard. COPE calls on the President and the Minister to meet with these soldiers and settle the issues that they have raised. We call on the soldiers to maintain the highest discipline.

Ms H H MALGAS

Mr L RAMATLAKANE

GENDER DISCRIMINATION

(Member's Statement)

Ms H H MALGAS (ANC): Deputy Speaker, it is for the first time that I am speaking in the national Parliament, but I am used to speaking wherever I go to.

This statement is on gender discrimination. Our struggle for national liberation has evolved to appreciate the real and potential role of women, and their liberation from patriarchy was and still is an integral part of this new democracy. The ANC was formed and evolved as part of progressive forces across the globe in the fight against colonialism, racism, poverty, underdevelopment and gender oppression.

However, recent developments, particularly in the province of the Western Cape, are bent on reversing the gains that the women of our country have made over the past few years. Immediately after the April general elections, the DA-led provincial government appointed males only to the provincial cabinet. [Applause.]

The Speaker of the DA-led Cape Town City Council recently made comments to the effect that female councillors had to cover up so that their male colleagues were not led into temptation. This comment by the council Speaker and the appointment of an all-male provincial cabinet in many respects is evocative of the situation of previous eras of patriarchal relations of power. Thank you. [Time expired.]

Mr M B SKOSANA (IFP)

Ms H H MALGAS (ANC)

PRESIDENT ZUMA'S INTERVENTION IN ZIMBABWE

(Member's Statement)

Mr M B SKOSANA (IFP): Madam Deputy Speaker, the IFP commends President Jacob Zuma for the frank intervention in Zimbabwe. We also commend President Zuma for impressing on the three political parties involved in the SADC agreement on the unity government in Zimbabwe the urgency of a political settlement which these parties were responsible for establishing. It is not the fault of the leadership of the MDC that the Western governments are reluctant at this juncture to assist in the recovery of the ailing Zimbabwean economy and the lifting of sanctions against Zanu PF leadership, as we are made to believe.

The fact of the matter is that there are conditions which the unity government and, in particular, the leadership of ZANU-PF must attempt to satisfy. It is reported that the President of the USA, Barrack Obama, was willing to help Zimbabwe's long-suffering people but not by empowering the forces of oppression - that was in the Cape Argus today. It is obvious that the US and other western governments insist on good governance and respect for human rights in Zimbabwe as one other condition.

It is in the interest of successful regional economic integration and development that South Africa should continue to engage without pause all the leaders in Zimbabwe to promote, among other things, the imperative of involving the Zimbabwean civil society in the constitution-making process. An all-inclusive political dispensation is important to bring peace, stability, co-operation and development to Zimbabwe. I thank you. [Time expired.]

Mr N M KGANYAGO

Mr M B SKOSANA

CONSUMER DEBT

(Member's Statement)

Mr N M KGANYAGO (UDM): Madam Deputy Speaker, the UDM notes with dismay the latest reports on current consumer debt. It is reported that the National Credit Regulator has pegged the figure of consumers who are currently receiving debt counselling at almost 100 000.

Their collective debt totals R20 million, more than half of which relates to mortgages. It means that tens of thousands of households are in deep financial trouble and may lose their homes. What is of even greater concern is that there are predictions that the number of consumers under debt review may expand to 150 000 by the end of this year since an average of 10 000 applications are made every month.

The current court backlog due to legislative uncertainty has created a further problem which we hope will now begin to be resolved after the recent Pretoria High Court ruling on the matter. It is incumbent, though, on this House and the executive urgently to clear up any confusion and uncertainty that remain in the National Credit Act. In the meantime it is our duty as representatives of the people to raise public awareness about responsible financial behaviour. In this regard all of us should live and work in such a manner that we refrain from extravagance and conspicuous consumption. I thank you.

Mr M E NCHABELENG

Mr N M KGANYAGO

RURAL DEVELOPMENT, PARTICULARLY IN MUXIYANI VILLAGE IN GREATER GIYANI MUNICIPALITY

(Member's Statement)

Mr M E NCHABELENG (ANC): Madam Deputy Speaker, today South Africa has a caring government with housing system programme for the poor. With clinics being built close to where people live, households being connected to water and electricity, more people having access to telecommunications, over 400 families living in Muxiyani in the Greater Giyani Municipality will no longer be expected to travel long distances to fetch wood in order to cook.

Thanks to the electricity switched on in the village, the important turning point in the lives of the Muxiyani villagers is that immediately 417 households will have electricity for the first time, with government spending almost R4 million to make this possible. As the ANC, we have known for the long time that the biggest casualties of lack of access to electricity in particular, are women, children, people with disabilities and pensioners.

The ANC considers rural development to be a central pillar in our struggle against unemployment, poverty and inequality. I thank you. [Applause.]

Dr W G JAMES

Mr M E NCHABELENG

FURTHER EDUCATION AND TRAINING

(Member's Statement)

Dr W G JAMES (DA): Madam Deputy Speaker, highly successful countries in the knowledge economy have up to 60% of the 18 to 24 years old participating in the college and university sector. In the case of Korea, it is 91%. The South African figure for 2007 is 16%. A desire in the short term on the part of our government is to get it beyond 20%.

About 2,8 million potential students in the 18 to 24 years age range are neither studying, employed, nor disabled. Of these, roughly 700 000 with Grade 12 are not studying, employed and are not disabled. Of these collectively, approximately 1 million students can go into the college sector or what is often referred to as a further education and training sector. If that were to happen, our participation in the knowledge economy and in the university sector would improve radically.

If there was quality in the system, the contribution of the sector to our knowledge economy would vastly improve. There is a ready college level market on the supply side and the question is whether the further education and training colleges can respond quickly enough to absorb the students. [applause.]

Ms C DUDLEY

Mr W G JAMES

OUTSIDE INFLUENCES UNDERMINING SOUTH AFRICAN SOVEREIGNTY

(Member's Statement)

Ms C DUDLEY (ACDP): Madam Deputy Speaker, the ACDP is concerned about the undermining of the sovereignty of South Africa by outside interference. A monitoring committee in the UN has issued a document, General Comment No 20, demanding changes to our state's Constitution laws and policy documents.

These are infringements of our democratic right to govern ourselves and have our children taught according to a South African curriculum. This infamous GC/20 instruction could be used to impose limitations on anything from sporting disciplines to family interactions and all religious people as it seeks to remove individual freedom.

It is the Netherlands government's interference in our school system which seeks to instil in our children a theory - not a scientific law, a theory - and one which breaks four of science's immutable laws of the universe, as a truth. They are investing R160 million in promoting the theory of evolution of which the world renowned scientist, Dr Colin Patterson, head of palaeontology at the British museum, states that there was not one such fossil for which one could make a watertight argument. It is for this nonviable premise that the Dutch seek to brainwash our children.

The ACDP condemns these incidents of outside interference in the strongest possible terms. We are particularly concerned for the SADC community and urge its leaders and our government not to give way by complying with any UN instruction that demands altering the country's Constitution or to accept foreign grants that seek to promote teaching our children untruths. [Applause.]

Mr G D SCHNEEMANN

Ms C DUDLEY

THREE NEW SAPS EMERGENCY CALL CENTRES IN MPUMALANGA

(Member's Statement)

Mr G D SCHNEEMANN (ANC): Deputy Speaker, the ANC proceeds from the premise that a better life for all also means an improvement in the safety and security of our citizens where they live and work. The Department of Police is setting up three new emergency call centres in Mpumalanga to improve the security of our citizens who live in that part of the country.

The new centres are aimed at improving efficiency and ensuring a quick response and dispatching of police officers to where they are needed. All three centres will run 24 hours a day and will be managed by dedicated and highly trained staff.

The ANC, working together with our people, will persist in ensuring that the fight against crime is intensified through the introduction of measures that will assist in reducing current levels of crime. I thank you. [Applause.]

Mr M WATERS

Mr G D SCHNEEMANN

NEW HEAD OF THE SOUTH AFRICAN NATIONAL AIDS COUNCIL

(Member's Statement)

Mr M WATERS (DA): Deputy Speaker, the DA wishes to congratulate Dr Nono Simelela who takes over on her new appointment as head of the South African National Aids Council today. So far, we believe that she will bring new life to this largely ineffective body and be allowed to play a forceful role in our national aids campaign.

Dr Simelela was the first South African black woman to qualify as a specialist obstetrician and gynaecologist. She eventually rose to the position of Chief Director of the national HIV/Aids and TB programme in 1998. There she fought a desperate and isolated battle to lift former Health Minister, Manto Shabalala-Msimang's, blanket of Aids denialism.

The fact that a national treatment programme eventually come into existence was partly due to the vigorous campaigns of the DA, the TAC and others, but also to Dr Simelela's hard work and commitment when all the odds were against her. Thank you. [Applause.]

Ms S P RWEXANA

Mr M WATERS

CONDEMNATION OF JULIUS MALEMA'S STATEMENT ON RAPE REMARKS

(Member's Statement)

Ms S P RWEXANA (COPE): Madam Deputy Speaker, Cope's women's forum condemns the statement made yesterday by the ANC Youth League President, Julius Malema, that he will not apologise to the complainant for the public statement he made about a rape case even if he is found guilty by the Equity Court.

We live in a country that has one of the highest rates of crime, rape and abuse against women. In South Africa most women are still trapped in abusive relationships. They have little or no say in matters relating to their sexuality and are victims of violence, rape, unwanted pregnancies, HIV and Aids. Therefore, we believe that statements which are damning, discriminatory and aimed all at reinforcing the strong stereotypes about women should not be tolerated.

The Congress of the People's women's forum denounces all forms of sexual violence and discrimination against women. We envisage a society where women will be able to walk freely in the streets with dignity and without fear. We, therefore, call upon all responsible organisations and free-thinking citizens to unite and condemn the statement made by Julius Malema.

Let us support and build solidarity for all women who are victims of any form of oppression. The Minister of Women, Children and People with Disability should inform the public and this House … [Time expired.] [Applause.]

Dr S M PILLAY (ANC)

Ms S P RWEXANA (COPE)

MATERNAL, CHILD AND WOMEN'S HEALTH SUMMIT IN BOKSBURG

(Member's Statement)

Dr S P PILLAY (ANC): Madam Deputy Speaker, The Freedom Charter commits the ANC to provide a preventative health scheme run by the state. It further commits the ANC to provide free medical care, hospitalisation for all, with special care for mothers and young children. On Tuesday 25 August this year, health workers gathered at the summit in Johannesburg to discuss women's health with an emphasis on maternal and child health.

The objective of the summit was to obtain consensus among health professionals on key bottlenecks that need to be overcome to improve healthcare; to obtain consensus on how to achieve the health-related Millennium Development Goals; and to agree on steps that need to be taken urgently to address the challenges we face to improve the health care we provide to the population, and thus provide hope that the health system can be strengthened in such a way that people would receive the type of health care they deserve when they are most vulnerable.

The hon Minister, Dr Motswaledi, addressed the summit and reminded health care workers and professionals that their profession was a calling that demanded, passion, compassion, as well as dedication and that they should treat all people with love, honour and dignity. He further called on health workers and professionals to abide by this calling and to treat all patients with the dignity that they deserve.

In line with our Freedom Charter, improving the quality of health care is an integral part of the implementation of the National Health Insurance that we propose. In our divided an inequitable society, universal coverage is part of our mandate to bring about redistributive justice and to build a better life for all, and not just a particular few. Together we can do more! Thank you. [Applause.]

Ms H N MAKHUBA

Dr S M PILLAY

POOR SERVICE OF HOME AFFAIRS LEADS TO SUICIDE INCIDENT

(Member's Statement)

Ms H N MAKHUBA (IFP): Hon Deputy Speaker, it is a right of all South Africans to have access to all types of enabling documents. All citizens are equally entitled to the rights, privileges and benefits of citizenship, as stated in our Constitution.

It is, therefore, shocking to hear about Sikhumbuzo Mhlongo, who committed suicide as he was denied the right to an ID by one of the Home Affairs officials. The IFP is encouraged by the swift action of the hon Minister of Home Affairs.

We hope that the country is moving away from the era of denial of existing problems in our system of governance. These incidents highlight an existing problem regarding the attitude of most of our public servants, who have a mentality that they are not serving, but doing South African citizens a favour.

The IFP applauds the Minister and calls upon all political parties to work together to stamp out the culture of corruption, entitlement and self-enrichment among most public servants, because their actions compromise government delivery. We convey our condolences to the Mhlongo family. I thank you. [Applause.]

Ms P DE LILLE

Ms H N MAKHUBA

COMPETITION BILL SIGNED INTO LAW BY PRESIDENT

(Member's Statement)

Ms P DE LILLE: Madam Deputy Speaker, I want to commend President Jacob Zuma for signing the Competition Amendment Bill into law, because now South Africa is in line with international standards. In a country where millions of our people live in dire poverty we, as lawmakers, cannot allow some businesses to prey on their vulnerability. It was because of this concern that the ID, two years ago, submitted the Private Member's Bill to Parliament.

There has been much talk about the constitutionality of the Bill, with some saying that the President must take the Bill to the Constitutional Court. That is not the job of the President. Now that the Bill has been signed into law, any business can contest it in the Constitutional Court.

This is defining moment in our battle to hold company directors criminally liable for anticompetitive behaviour. It marks the beginning of a new era of business accountability, and there is no reason why businesses and their directors should be left out of our national project to create a law-abiding society.

Over the past few years, directors of some of the biggest staple food suppliers have shown contempt for the ordinary consumer and the ID sincerely hopes that the amended Act will provide some justice and act as a deterrent. Thank you. [Applause.]

The MINISTER OF HIGHER EDUCATION AND TRAINING

Ms P DE LILLE

FURTHER EDUCATION AND TRAINING

OUTSIDE INFLUENCES UNDERMINING SOVEREIGNTY OF SOUTH AFRICA

(Minister's Response)

The MINISTER OF HIGHER EDUCATION AND TRAINING: Madam Deputy Speaker, I'd like to respond to two matters, and one was raised by the hon Wilmot James. We do agree with him that, indeed, we have a big challenge in this country in terms of absorbing the millions of students aged between 18 to 24 who are neither at work nor in any education institution, nor in training, and who do not have any form of disability.

Our department has already made a very strong commitment to the prioritisation of expanding and building the capacity of Further Education and Training colleges.

However, this is building upon what the department has already done in terms of a three-year commitment to the recapitalisation of FETs between the years 2007 and 2009. It is also because of this that Cabinet took a decision that FET colleges must become a national responsibility, but, at the same time, without abandoning their responsibility to respond to regional and local needs.

To this effect, the department has established a transition oversight committee to oversee the transfer of responsibility from the provincial to the national Department of Higher Education and Training, as well as six technical committees that have provincial representation.

We hope that the DA, as it recognises the challenges, will play a constructive role in supporting this effort of having at least a million students in FET colleges by 2014.

On the second matter, I'd like also briefly to say to the ACDP, that we don't think it is very helpful to try and push us towards committing to teaching things about evolution because the ACDP's stance, basically, wants us to teach our children against evolution in a manner that actually mimicks the right-wing church movement in the United States.

If we are to deal with this matter, we must open our children to all sorts of point of views, whether it's evolution or other points of view, in a manner that is progressive and in line with our commitment to widening the horizons of our children rather than locking them into very narrow, right-wing religious discourses. Ngiyabonga. [Applause.]

The MINISTER OF SCIENCE AND TECHNOLOGY

The MINISTER OF HIGHER EDUCATION AND TRAINING

RIGHT TO PROTEST

CLASHES BETWEEN SANDF AND POLICE

EXCESSIVE EXPENDITURE ON MOTOR VEHICLES BY SENIOR POLITICIANS

CONSUMER DEBT

(Ministerial Response)

The MINISTER OF SCIENCE AND TECHNOLOGY: Madam Deputy Speaker, the executive would agree with those hon members who have referred to the constitutional right of all South Africans to demonstrate and protest in a peaceful manner, and we believe it is the responsibility of both Parliament and the executive to uphold this right.

We do, however, agree with the expressions of concern at what we saw at the demonstration outside the Union Buildings by members of the SANDF last week, and I'm sure all hon members would agree that no person serving in the security services of our country should conduct themselves in that way. No one would support such conduct. Therefore it is vital that the Minister of Defence does indicate in very clear terms the expectations of our government and the people of our country with respect to the security services and their conduct in South Africa. They are charged both with upholding and respecting our Constitution and ensuring a safe environment for all in our country, and this is what Minister Sisulu is seeking to uphold in the steps that she has taken in the past few days.

With respect to the statement by the DA concerning expenditure on vehicles by members of the national executive, I think Cabinet has issued a statement in this regard and indicated, emanating both from the President and the entire Cabinet, that all of us must take steps to ensure that we spend national resources judiciously.

The statement also included an indication that no Minister had breached any of the rules related to the purchasing of official vehicles. [Interjections.] I think that is important. [Interjections.] No, no, no! And in fact this is something that the DA chooses to ignore, just as they wish to ignore the ANC's statement about the gender neglect of appointing competent women in the DA to the government of the Western Cape. [Applause.]

We would indeed say that we expect women to continue to express disquiet and concern at this apparent statement that there are no talented women in the provincial legislature who are representatives of the DA. This is a most worrying statement to be made by any person living in South Africa today, and we hope that the DA will follow the example of the ANC and ensure that women enjoy equal opportunity for positions of leadership in South Africa. [Applause.]

Finally, Madam Deputy Speaker, we would certainly agree with the hon member of the UDM that more must be done to encourage our people to save. All of us, including we, as members of Parliament, must do more to encourage saving and the reduction of debt, and to ensure that we have information programmes in our constituency offices so that the people of our country do understand how they can avoid getting themselves into a situation where they can no longer cope with debt.

We certainly will intensify the efforts of government at ensuring that we begin to provide solutions that address the absence of jobs for all our people, and as my colleague Minister Nzimande has indicated. We will do this by addressing the matter of skills, but also by intensifying our action toward implementing our industrial development action plan, which seeks to build new industries and strengthen our productivity in terms of job creation and economic activity in areas currently neglected in the economy of South Africa. Thank you, Madam Deputy Speaker.

The DEPUTY MINISTER OF HOME AFFAIRS

The MINISTER OF SCIENCE AND TECHNOLOGY

POOR SERVICE OF HOME AFFAIRS LEADS TO SUICIDE INCIDENT

(Ministerial Response)

The DEPUTY MINISTER OF HOME AFFAIRS: Thank you, hon Deputy Speaker. I want to thank the hon member from the IFP for the very constructive statement she made about the unfortunate incident at the Pinetown Home Affairs office.

Indeed, we immediately dispatched a team of senior officials yesterday who are investigating this matter. We have instructed these officials to provide us with a report by Friday this week so that we can take drastic measures. I think the officials of the department involved in that brutality will learn a good lesson and that others who are also involved in such activities will also learn a good lesson. We are going to take drastic measures to ensure that such incidents do not recur in our department. Thank you very much. [Applause.]

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms B M Ntuli)

The DEPUTY MINISTER OF HOME AFFAIRS

COMPETITIONS LAW

(Ministerial Response)

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms B M Ntuli): Thank you very much, Deputy Speaker. I want to agree with the hon member Patricia de Lille. Indeed the Bill that has now been signed into law will assist the Competition Commission to do its work better and smarter.

Many business managers are aware that there is collusion in their businesses, but they turn a blind eye because they know that no one will hold them accountable. This law is going to assist us in this regard. Thank you very much, hon member. [Applause.]

The MINISTER OF FINANCE

THE DEPUTY MINISTER OF TRADE AND INDUSTRY

TAXATION LAWS AMENDMENT BILL

(Introduction)

The MINISTER OF FINANCE: Deputy Speaker, colleagues, Ministers and Deputy Ministers, hon members and young South Africans who are in the gallery, it gives me great pleasure to introduce the Taxation Laws Amendment Laws Bill of 2009. These Bills contain tax proposals announced in the February 2009 Budget Speech by the previous Minister of Finance, and elaborated on in the 2009 Budget Review which he tabled during that speech.

For technical reasons, the amendments are split into two Bills - a money Bill, under section 77 of the Constitution, and an ordinary Bill, under section 75 of the Constitution.

Given the 2009 general elections and the subsequent convening of the fourth democratically elected Parliament, we decided to introduce only one set of taxation amendments this year. There will thereforebe no Revenue Laws Amendment Bills in 2009. It is our view that we should, in future, continue to strive towards having only one set of major Taxation Amendment Bills each year, to allow more time for consultation and the preparation of these Bills.

Let me take a moment to speak briefly about where tax and the global economic crisis fit in with each other. The global crisis continues to weigh heavily on economies around the world, including our own. Budget deficits like our own have soared to unprecedented heights as tax revenue has fallen sharply.

As it stands today, South Africa is about R22 billion to R23 billion short of its current revenue target. Employment levels are falling in almost every country including, our own.

The 2009 Taxation Laws Amendment Bill contains tax measures announced in the 2009 Budget that, together with other aspects of the fiscal framework, provide support to the domestic economy through this extraordinary period in our history. This, if you like, is South Africa's own stimulus package, which predated the crisis hitting our own economy. We had hoped at that time that South Africa would escape the economic crisis or, certainly, the worst of it, but although the economy continues to grow, it did so and does so at a slower pace than during the boom.

The first contraction in our economy was seen in the final quarter of 2008, when it contracted by 1,8%. Larger contractions have since been seen. These contractions have also been seen in other emerging market economies such as South Korea, Mexico and Thailand.

In South Africa we have responded by choosing to sustain growth in infrastructure spending, to support well-targeted industrial development programmes, to broaden social security benefits and to continue to invest in education, health and other public services. To put it more simply, despite the fact that we have falling revenues in South Africa, government has decided not to cut, but rather to borrow in a prudent way in order to meet our expenditure requirements. [Applause.]

Currently, our budget deficit estimate for 2009-10 stands at 3,8%, but when we deliver the Medium-Term Budget Policy Statement to you later in October, it certainly won't be at the same level. Public sector borrowing requirements have increased sharply in line with the decisions that we have made and reflect our intention to ensure that we can maintain our current levels of expenditure.

The global downturn has been worse than we expected, and South Africa is now, as we all know, in recession for the first in over 17 years. While there are indications that the South African economy might have reached the bottom of this sharp downturn, the road to recovery will be slow and it will be gradual.

Hon members might not have become familiar with the Vs, the Ws, the Us and the Ls. These are all the indicators that are used world-wide to begin to speculate on how this growth will pattern out and what form it will actually take. More recently, where there has been a recession, there has been talk of a W-shaped growth, where we see a slight improvement, but we then see another drop before there is an eventual improvement for the next few years. Therefore, the W has now become a lot more popular, if you like, in terms of what people or economists envisage over the next few years.

The past year has shown us that capitalism is prone to periods of excess and exuberance. One of the ongoing tasks of this administration is to ensure that the poor and vulnerable are protected from the effects of these boom-bust cycles. It is the poor and the vulnerable, who constitute the majority in every society, who suffer the most when bankers and others begin to take risks and engage in all sorts of creativity of the wrong sort at the wrong time.

It is in the rising numbers of unemployed that we observe the very real human cost of this economic crisis. In South Africa employment levels have fallen by 3,5%. In other words, approximately half-a-million working South Africans, who were in jobs a year ago, are no longer in jobs, and they and their families face the consequences of that.

Measures like the proposed training lay-off scheme that we have taken as government, provide a layer of protection for workers, and give firms an alternative to retrenchments during the recession. The Expanded Public Works Programme, led by Minister Doidge, should help to provide additional job opportunities. For some economies, such as in Europe, wage moderation and firm-level flexibility have helped to keep people in jobs rather than out of jobs.

Going forward, our economic growth path has to be a more labour absorbing one. Reducing unemployment is our single biggest priority in the decade ahead. For us to succeed here, we need a radical departure from business as usual. I hope that the House will engage with us as Ministers on how we should visualise the Business Unusual, if you like.

The public sector needs to create many more jobs, mainly through its infrastructure programme and through the delivery of labour intensive services, such as early childhood education and home-based care. The broader South African economy needs to become more competitive in its ability to grow exports to finance the consumption and investment needs of our domestic economy.

The world economy, as I have said earlier, is on the cusp of recovery, but it may be a weak one and, to be quite honest, no economist can tell us today whether there is a recovery on the way and, if so, whether it is a genuine or sustainable recovery. As South Africans, we need to find a sustainable path to renewal and economic development. There has been robust spending for many years by government in support of the broader renewal of our economy, community, public services and infrastructure. We need to ensure, as we are currently doing, that our economy is able to sustain that kind of spending.

A challenge for ourselves is to ensure the effectiveness of the services we provide and the efficiency in the expenditure that we incur. Our health, education, transportation, safety and security systems must help to solve the tough challenges faced every day by ordinary South Africans.

Over the next few years, we face the difficult challenge of doing more and better, but without additional resources. This will require a change in our leadership style, in organisational culture and in the structures of accountability in the public service.

President Zuma has taken the lead in calling for more effective service delivery and better performance by government institutions. It is up to all of us also to rise to this challenge.

Let me now turn – in that overall context of reduced revenue- sustaining current levels of expenditure – to how the 2009 Taxation Laws Amendment Bill begins to address some of the issues related also to revenue.

These laws deal with wide-ranging amendments to various pieces of tax legislation, including the Income Tax Act, the Value Added Tax Act, the Customs and Excise Duty Act and the Estate Duty Act. Some of the amendments that will be formally enacted in terms of these Bills have already taken effect, such as the increases in excise duties. So you now pay more for your cigarettes and alcohol than you did prior to the Budget! The fuel levies have also gone up, and the revised personal income tax tables for 2009-10 have also been implemented.

What are the changes that these Bills introduce for individuals that are in place already? For individuals, the most important amendment was the adjustment to the personal income tax thresholds, which resulted in tax relief for individuals estimated at R13,5 billion. We seem to have forgotten that this was our early stimulus to the economy because it was a huge risk to give a R13,5 billion tax cut at a time when revenue itself was looking very uncertain. I am sure that this tax relief for taxpayers has played an important role in helping South African citizens.

Other important amendments relate to the taxation of lump sum withdrawals from retirement savings before retirement and on retrenchment, especially in the current economic environment. A significant simplification of the tax treatment of lump sum payments from retirement savings upon retirement and preretirement lump sum withdrawals will be implemented as from this year. Without boring you with details, in essence there is a more gradual stepping up of the taxation that one is due for upon retirement and upon receiving lump sum payments which will very favorably look at the kind of pressure South Africans face. There are a whole lot of rules in the legislation which help us to govern this process.

Given the concerns about the plight of workers that are losing their jobs in the current environment and as part of the measures agreed on through the Nedlac process to alleviate the impact of the current economic crisis, the draft Bills propose that withdrawal from retirement funds on retrenchment will qualify for a R300 000 exemption, which is the same as that for retirement.

So until this change in the law comes about, retirement and retrenchment will still be treated on a different tax basis - retirement more favorably and retrenchment less favorably. These measures ensure that in the current economic climate, both of these phenomena are dealt with in the same way.

The second major progressive step for individual taxpayers is the amendment to the Estate Duty Act, which seeks to assist middle-income families and broaden the tax relief that some taxpayers could only access through advice from expensive tax planning experts. This amendment will allow the R3,5 million deduction for estate duty purposes to automatically roll over from the first deceased spouse to a surviving spouse or spouses.

The surviving spouse or spouses will therefore have access to a deduction of up to R7 million on the second spouse's death. What this means is that we don't have to get into very complex trusts and other forms of structures in order to benefit from estate duty provisions that will now be in our law.

In order to improve the equity of the income tax system - and this is the third element - and to broaden the tax base, which is very important in our current climate, the tax treatment of travel allowances will be reformed. The deemed kilometre method for deducting travel expenses will be repealed with effect from 1 March 2010.

In essence, for many years, South Africans who did not use their vehicles for business purposes pretended that they used them for business purposes and derived tax benefits and deductions as a result. What this change will do is to take away that perverse incentive, and those who want the benefit of tax allowances for genuine business use of their vehicles will be required to maintain a logbook of the business kilometres they have travelled, pretty much like many members do. The pay as you earn, Paye, system for the travel/car allowances will be adjusted so that 80% of this allowance will be subject to Paye. The current level is 60%. I can inform the House that this is one of the more abused allowances in the tax system. By covering this loophole, there is going to be huge benefits in increasing the tax base.

What are the implications of the changes we suggest for the business community? In terms of business taxation, the focus of the Bills is on further refinements to the proposed dividends tax that will replace the secondary tax on companies, the tax relief for certified emissions reduction, CER, and the proposed tax incentives for energy efficiency savings by businesses.

Here we are sending an important message as South Africans to both ourselves and the international community that the tax system will begin to incentivise the right kind of emission behavior and disincentivise the wrong kind of emission behavior.

The Bills also refine tax incentives for venture capital companies - which is a serious deficiency in our system - and provide another opportunity for taxpayers to unwind legal entities that were set up to "house" residential properties to minimise certain taxes.

You can see that we are very generous people. People have actually been mischievous in trying to place their properties in particular kinds of structures, which when they are unwound should actually be taxed.

But we are now saying we will give them a further break if they unwind those complex structures so that they can come into the normalcy of the tax system without incurring any penalties or any taxation. Perhaps, Mr Ellis, this is the wrong time for us to be generous.

On the tax administrative side, the provisional tax payment system is being more closely tailored to meet the expectations of different categories of taxpayers.

An important element of this Bill is also the learnership tax incentive. This incentive to encourage employers to up-skill their employees through registered learnerships or apprenticeships is being streamlined and further enhanced. If an employee successfully completes a 12-month learnership, his or her employer will be able to claim an additional deduction of R60 000. This will result in a tax relief of R16 800 per employee for an employer registered as a company.

Where an employee successfully completes a three-year apprenticeship, the employer will be able to claim an additional allowance of R180 000 at the end of the third year, resulting in tax relief of R50 400 per employee. This again, in the context of the recession and the employment climate we have today, is yet another incentive for employers in South Africa to walk the extra mile with government in order better to prepare our workforce for better employment opportunities.

The sale of CERs, also known as carbon emission reduction credits will be exempt from income tax - yet another break for business.

The provisional tax system was tightened in 2008 to do away with the so-called "basic amount" and requires 80% accuracy in respect of the second provisional payment when compared to the final assessed tax due. This set of amendments and the one included in this Bill arises from the fact that many businesses gain from the provisional tax system.

They pay a minimal amount initially and wait for Sars to follow up, and if they don't, they eventually pay a reduced amount. A new regime has been put in place to discourage this kind of behavior, but at the same time it recognises the difficulties that smaller businesses have faced as a result of the initial amendment. The subsequent amendment will now differentiate between small and large business taxpayers, but yet ensure that the system is fair.

The Bills also clarify provisions in respect of the principle of "pay now, argue later". There has been much mischief and misinformation on this issue. I hope the revised legislation provides for clarity and fairness in this regard in accordance with existing case law and international experience.

What has tax got to do with recession? I want to make a simple point before I conclude. Government has become the guarantor of last resort all over the world. Had it not been for government in the US, for example, General Motors could have been completely bust. Had it not been for government in Germany, Opel would not be available for sale and secured in the way it has been. Similarly, government in South Africa has played an important role, either in infrastructure expenditure, the tax cuts we have given to individuals or in other provisions we have co-developed with labour and business.

The importance of this Bill and its provisions is to secure the tax system to ensure that government still collects adequate amounts of revenue so that it can play this defensive role on behalf of society and ensure that South African business and the economy remain competitive.

Notwithstanding this objective, we regrettably find that there are still South Africans who don't understand the current context or the current role that government has to play. They will take every advantage, both in South Africa and elsewhere in the world, to gain from the tax system. Currently, two senior Sars officials are participating in a global forum on this particular topic in Mexico, where tax administrations and treasuries are looking at various ways of firstly understanding the behaviour of taxpayers during climates like the current one and, secondly, also sharing experiences on how we combat tax leakage from our systems.

In the South African system, domestic VAT remains a concern. Our VAT refund levels have been quiet, and there is a steady growth in the number of returns that have not been filed by businesses or that have been filed without payment. Taxpayers in South Africa will say they filed their return for VAT, but if they owe R10 000, they will hold the cheque back until Sars knocks on their door, and then they will pay their R10 000. They will use the R10 000 as a cash-flow mechanism during the period they are actually waiting for Sars.

All I want to do is take this opportunity to advise businesses that we will all be shooting ourselves in the foot by encouraging or engaging in this kind of behaviour, which is ultimately neither helpful to you or to the economy.

I would like to thank the chairman of the standing committee, Mr Mufamadi, for his leadership, and the members of the Standing Committee on Finance for their constructive role in processing this Bill. I hereby table the Taxation Laws Amendment Bill of 2009. Thank you very much. [Applause.]

Bill refereed to Standing Committee on Finance for consideration and report.

Mr I VADI

THE MINISTER OF FINANCE

CONSIDERATION OF LIST OF CANDIDATES RECOMMENDED FOR APPOINTMENT TO COUNCIL OF THE INDEPENDENT COMMUNICATIONS AUTHORITY OF SOUTH AFRICA (ICASA)

Mr I VADI: I am pleased to table the report on the filling of the vacancy in the Council of the Independent Communication Authority of South Africa, Icasa. As the term of office of Mr Mthobeli Zokwe was terminated in June this year, the Portfolio Committee on Communications invited the public to nominate suitable candidates for the post. The committee received 86 nominations from the public. It eventually decided on interviewing nine candidates. Unfortunately, two candidates withdrew at the last minute.

Having conducted the interviews, two weeks ago, the Committee reports unanimously that the following two candidates, Mr Khulile Bhoqwana and Mr William Stuckey be recommended to the Minister of Communications for appointment to the Council of Icasa. Of course, the Minister will have to decide on either one of the two candidates and refer the matter back to the House for a final decision.

Both Mr Bhoqwana and Mr Stucke are worthy candidates for appointment. Mr Bhoqwana has a Masters Degree in Business Leadership, a Bachelors Degree in Accounting Science and a Senior Teachers Diploma; Mr Stuckey has a BSc Honours in Engineering and is a certified Electrical Engineer.

I wish to mention that the Committee is not satisfied with the overall performance of Icasa councillors – this doesn't mean that we are going to dissolve the council as we did with the SABC Board, but I think it is a matter of concern that its performance is not up to standard.

The Committee is, continually, receiving negative feedback on administrative efficiencies within Icasa; the failure to process regulatory decisions on the basis of proper and legally defensible procedures; the absence of organisational cohesion between the councillors and the senior executive management; and we are receiving reports of a number of councillors undertaking international trips that have little or no bearing on their core responsibilities.

The Committee has also noted that in terms of section 6(a) of the Icasa Act, the Minister in consultation with the NA must establish a performance management system to monitor and evaluate the performance of Icasa's chairperson and other councillors.

The performance management system involves certain key performance indicators as a yardstick for measuring the performance of the councillors; setting measurable performance targets; and

establishing a procedure to measure and review the performance of each councillor at least once a year.

The evaluation of the performance of the chairperson and the councillors must be conducted by a panel constituted by the Minister in consultation with the NA; and a report by the panel must be submitted to the NA for consideration.

To the best of our knowledge, the former late Minister Ivy Matsepe Cassaburi had not established such a system. Consequently, Icasa councillors have not been fairly and properly evaluated although anecdotal evidence from the public suggests that the situation is less than satisfactory.

The Committee, therefore, in recommending the two candidates for appointment to the Council, urges the Minister to formalise the performance management system as a matter of urgency so that a discernible instrument is available to evaluate and assess the work of the Icasa councillors.

The Committee recommends that the report be approved by the House and the names of Mr Khulile Bhoqwana and Mr William Stucke are referred to the Minister for consideration. Thank you very much.

There was no debate. Mr N J VAN DEN BERG

Mr I VADI

Declaration of vote:

Mr N J VAN DEN BERG (DA): Madam Deputy Speaker, although the DA with the help of the opposition parties has reached an agreement on the naming of the two candidates to the Icasa Board, the DA has concerns.

The DA states it clearly that the candidate nominated by the DA, Mr William Stucke, has the ability to spark or uplift Icasa's day-to-day business. The DA is concerned that Icasa is not doing business according to the law. Icasa has been criticised for continual delays in publishing regulations, drafting ill-thought-out and meaningless regulations and its inability to keep qualified staff.

Secondly, why is Icasa taking so long to act on the high cost of interconnecting? Icasa needs a board that will ensure that those involved do what is expected of them. For example, Icasa has a database of frequency spectrum allocations, but it refuses permission to allow anyone to see it.

In the interviews of the Portfolio Committee on Communications with the candidates, it was stated that the database contained sensitive State information. However, military-assigned frequencies are more or less same throughout the world, so there was no secret about that.

What are they really hiding? Why does Minister Siphiwe Nyanda not lower interconnecting fees using the policy directive that is given by the Electronic Communications Act which will effectively force Icasa to lower those fees?

Afrikaans:

Die onbeholpenheid van Okosa kan die inwerkingstelling na digitale televisie laat struikel. In 'n hofsaak wat op 15 September vanjaar aangehoor word, sê e.tv dat die implimentering van Okosa se regulasies vir Suid-Afrika se digitale oorskakelingsplan gestaak moet word, omdat dit die bedryf te veel geld sal kos.

In die dringende interdikaansoek sê e.tv die volgende, en ek haal aan:

Okosa regulasies word gekenmerk deur, onder meer, proseduriële onregverdigheid, 'n gebrek om relevante inligting in ag te neem, regsfoute, irrasionaliteit en onredelikheid.

English:

The DA wants Parliament to monitor Icasa...

Afrikaans:

... soos ons in Afrikaans sê: met 'n fynkam.

English:

Icasa cannot be allowed to drag their feet on important issues. I thank you. [Applause.]

Question put.

Agreed to.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY

Mr N J VAN DEN BERG

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON DEFENCE AND MILITARY VETERANS - BUDGET VOTE NO 19

There was no debate.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move that the report be adopted.

Motion agreed to.

Report accordingly adopted.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY

CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON SPORT AND RECREATION - BUDGET VOTE NO 17

There was no debate.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy speaker, I move that the report be noted.

Motion agreed to.

Report accordingly noted.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY

CONSIDERATION OF FIRST REPORT OF JOINT RULES COMMITTEE, 2009

There was no debate.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Speaker, I move that the report be adopted.

Motion agreed to

Report accordingly adopted.

The House adjourned at 15:16.

VM / END OF TAKE

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