Hansard: NCOP: Motions and Consideration of the Revised Fiscal Framework

House: National Council of Provinces

Date of Meeting: 07 Nov 2011

Summary

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Minutes

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TUESDAY, 8 NOVEMBER 2011

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

IN KWAZULU-NATAL

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The Council met at eNquthu Sports Ground in uMzinyathi District Municipality at 16:35.

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

Mr J J GUNDA


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START OF DAY

NOTICES OF MOTION

Mr J J GUNDA: Thank you, hon Chair. On behalf of the ID, I give notice that at the next sitting of the Council I shall move:

That the Council-

debates the state of South Africa's border posts and the upgrading thereof;

notes that the poor state of the border posts is largely due to the condition of ports of entry into the country, which came to light during a Home Affairs Portfolio Committee visit in July this year;

further notes that immigration statistics have shown that high volumes of people make use of the Ramathlabama, Skilpadhek and Kopfontein border posts situated along the North West corridor, making the poor conditions at these sites even more troubling; and

regards the absence or non-visibility of members of the SANDF at the North West border as cause for concern, especially since drug and human trafficking is a grave concern at this time of the year.

Mr M J R DE VILLIERS


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Mr J J GUNDA

Mr M J R DE VILLIERS: Thank you, hon Chairperson. On behalf of the DA I give notice that at the next sitting of the Council I shall move:

That the Council-

(1) notes that the Sunday Independent of Sunday, 6 November 2011 reported that the elite investigation unit, the Hawks, briefly detained Jacob Lebogo, the ANC Youth League's secretary in Limpopo for questioning on a stash of cash found, estimated at R2 million, plus some more notes found in his car;

(2) also notes that further information is that the Hawks are investigating Julius Malema, the President of the ANC Youth League, and Jacob Lebogo for alleged corruption charges and bribery;

(3) further notes that Julius Malema has a lavish lifestyle, wearing top labels, and after his recent march to economic freedom, leaves the poor behind for a lavish spectacular social splash at his friend's wedding in Mauritius; and

(4) notes that Julius Malema is busy misleading the poor, unemployed and economically disadvantaged for his own gain to put pressure on the ANC leadership for a light sentence.

The CHAIRPERSON OF THE NCOP: Hon members, I must just warn you. You know the Constitution and the Rules. While I will not rule this motion out of order now, you know that once a matter is before the court, it is sub judice. We are not going to deal with it now, as I am not sure whether the matter is before the courts or not – the office of the Chair will check that. If I do find that the matter is before the court, the motion will be taken off the list of motions of which notice has been given. I will thus not deal with this matter now.

Mrs A N D QIKANI


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Mr M J R DE VILLIERS

Mrs A N D QIKANI: Thank you, Chair. I give notice that at the next sitting of the Council I shall move:

That the Council-

notes that President Jacob Gedleyihlekisa Zuma, Umsholozi, Unxamalala, will be addressing this august House and the people of the uMzinyathi District this coming Friday, 11 November 2011, at 09:00;

(2) further notes that the President will be addressing the NCOP as part of his annual address to the NCOP under the theme, "Working together to advance the lives of our people";

(3) also notes that this theme is intended to provide a platform for all structures of government to usher in a new dawn of decisive leadership in addressing the needs of the people of uMzinyathi District and outline decisive steps to address the challenges facing communities in the district; and

(4) takes this opportunity to call on the people of uMzinyathi to come out in great numbers and be part of this historic moment when the President of the ANC visits them on Friday.

Mr D V BLOEM


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Mrs A N D QIKANI

Mr D V BLOEM: Thank you very much, Chairperson. I give notice on behalf of Cope that at the next sitting of the Council I shall move:

That the Council-

debates-

the Nehawu strike at the world-famous tourist attraction, the Robben Island Museum, which was conducted in an unruly manner; and

the fact that the strike has left national and international embarrassment in the minds of potential tourists; and

calls upon the union and the employer to sit down and settle their differences to avoid further embarrassment and damage to the tourist industry.

Mr J M G BEKKER


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Mr D V BLOEM

Mr J M G BEKKER: Hon Chairperson, on behalf of the DA I give notice that at the next sitting of the Council I shall move:

That the Council-

notes-

that the Gauteng Provincial Police Commissioner, Lieutenant General Mzwandile Petros, is being accused of arrogance, dictatorship and autocratic decisions and the fact that he becomes law unto himself, as recorded in a memorandum of former police officers in the Vaal area to the Gauteng MEC for Community Safety, Faith Mazibuko; and

that the Provincial Commissioner is accused of nepotism, intimidation of staff members, irregularity of procurement and other matters, especially to the advantage of members of the police coming from the Western Cape and the Eastern Cape; and

in the light of these allegations and the injustice to other members of the Police Service, calls on the Minister of Police-

to investigate the accusations made in the memorandum; and

to make the findings of the report public immediately they are available.

Mrs B L ABRAHAMS


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Mr J M G BEKKER

Mrs B L ABRAHAMS: Thank you, hon Chairperson. On behalf of the DA I give notice that at the next sitting of the Council I shall move:

That the Council-

notes that Minister Lulu Xingwana started building up frequent flyer miles by leading a delegation of 49 officials to a UN Conference in New York, the cost of the trip being R6,8 million;

further notes that it is not surprising, given this attitude, that the department overspent its administration budget by R8,8 million, largely due to overseas trips by officials;

also notes that the department failed to spend R5,6 million of its R7,1 million budget earmarked for the rights of people with disabilities;

acknowledges that budgetary priorities fail when-

(a) kidney patients are sent home to die because state hospitals cannot afford their treatment, which costs R100 000 per week;

(b) schools for the blind cannot afford Braille printers of up to R150 000 each; and

(c) a poor father risks his life by rowing a small boat from Port Elizabeth to Cape Town to raise the funds he needs for the operation that will enable his blind daughter to distinguish between light and dark;

calls on the Minister to address the gaps in her department, especially in regard to looking after our poor state patients who need medical assistance to make their inabilities more bearable; and

finally acknowledges that people with disabilities should be treated with the same respect as all other South Africans.

Mr D B FELDMAN


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Mrs B L ABRAHAMS

Mr D B FELDMAN: Thank you, Chairperson. I give notice on behalf of Cope that at the next sitting of the Council I shall move:

That the Council-

notes that Durban's Inkosi Albert Luthuli International Convention Centre has contributed R11,4 billion to the province's GDP during its five financial years;

further notes that the Inkosi Albert Luthuli ICC is eThekwini Municipality's entity and it was developed at a cost of R800 million;

acknowledges that the initiative has contributed greatly to the financial status of the municipality; and

debates the need for more initiatives similar to this one, to be implemented at local and provincial government level, to attract much needed investment.

Mr H B GROENEWALD


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Mr D B FELDMAN

Mr H B GROENEWALD: Thank you, hon Chairperson. On behalf of the DA I give notice that at the next sitting of the Council I shall move:

That the Council-

notes that the Minister of Defence accused members of the South African National Defence Force as follows: "Not only did you dishonour your pledge, but engaged in unlawful and criminal activities, threatened the security of the republic, made yourself guilty of the offence of mutiny ... scandalised the South African National Defence Force and shamed the nation ... ";

notes that this statement already implies that the Minister is the judge, the jury and the hangman, finding them guilty before due process;

further notes that this action of the Defence Minister means that the government under the ANC will be responsible for an estimated amount of R98 million, without legal costs, by being sued by 985 members who summoned the Minister for defamation;

acknowledges that this also implies that the Minister and her legal representatives do not understand fruitless and wasteful expenditure funded by the taxpayers; and

further acknowledges that such action by the Minister of Defence, of all people, is totally irresponsible and reckless, and she is therefore not capable of handling the taxpayers' money.

Mr D JOSEPH


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Mr H B GROENEWALD

Mr D JOSEPH: Thank you, hon Chair. I will move my motion in Afrikaans.

Afrikaans:

Dankie, agb Voorsitter. Ek sal my mosie in Afrikaans voorhou.

Ek gee hiermee kennis dat ek in die volgende sitting van die

Huis 'n mosie namens die DA sal voorstel:

Dat die Huis-

erken dat Afrikaans as een van die land se amptelike tale sy regmatige plek moet behou;

verder erken dat studente wat hul studies op tersiëre vlak wil voorsit die nodige ondersteuning en beurse moet kry;

kennis neem dat die universiteit van Stellenbosh die publiek en die Afrikaanse gemeenskap moet inlig in verband met die taalbeleidsveranderinge; en

verder kennis neem dat die Minister van Hoër Onderwys die taalbeleid van die universiteit moet beskerm en sodanige universiteite die regte van Afrikaans volgens die Grondwet moet laat bestuur.

The CHAIRPERSON OF THE NCOP: Hon member, I am not too sure of what you are trying to do, because the Constitution allows that automatically. You don't need a motion for it, but you have moved the motion and that is all right.

Mr D A WORTH

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Mr D JOSEPH

Mr D A WORTH: Hon Chairperson, on behalf of the DA I give notice that at the next sitting of the Council I shall move:

That the Council notes-

that, according to PricewaterhouseCoopers, the Global Economic Overview found South Africa to be the second most corrupt country in the world;

that in this regard the Free State premier is increasingly being scrutinised, not only by the media but also by other institutions, with regard to his flagship Operation Hlasela;

that since the inception of Operation Hlasela, the DA has warned about the possibility that the funds could be utilised to enrich politically connected individuals;

that media reports state that the official residence of the Free State premier, who has been dubbed Santa Clause and King Ace, is being renovated, R15 million having been initially budgeted for the renovations of this state property;

that, whilst 187 families could have been given new houses, these funds were appropriated for the maintenance of the premier's residence;

that recently the Premier has been associated with a cloak-and-dagga plot amidst leadership factions in the ANC in the Free State ahead of the elective conference at Mangaung next year;

that whilst Free State municipalities receive poor audit reports, the manoeuvring in the ANC leadership is denying residents their right to basic services; and

that South Africa might be at risk of losing its credibility in regard to ensuring accountable and transparent government on the global political and socio-economic front.

Ms M W MAKGATE

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Mr D A WORTH

HISTORICAL VALUE OF UMZINYATHI DISTRICT IN KWAZULU-NATAL

(Draft Resolution)

Ms M W MAKGATE: Hon Chairperson, on behalf of the ANC I move without notice:

That the Council-

notes with utmost humility and a great sense of pride the historical value of uMzinyathi district as one of the cultural epicentres of the heritage of the people of KwaZulu-Natal;

further notes that the uMzinyathi district hosts some of the most important heritage and cultural sites in South Africa, which tell a great tale of the journey that our people have travelled, and the fight that they have waged against colonialism and apartheid settlement;

acknowledges that the heritage routes and sites in the uMzinyathi district present a unique and important opportunity for local economic development and, in particular, the development of the tourism sector in the district, as one of the means to push back the tide of poverty and unemployment; and

takes this opportunity to call on the Departments of Arts and Culture and of Trade and Industry to develop a cultural industry strategy for this district in order to ensure that the people of uMzinyathi district benefit from the historical legacy of this area.

Motion agreed to in accordance with section 65 of the Constitution.

Mr G G MOKGORO


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Ms M W MAKGATE

QEDUSIZI WOMEN'S AGRICULTURAL PROJECT

IN UMZINYATHI DISTRICT, KWAZULU-NATAL

(Draft Resolution)

Mr G G MOKGORO: Hon Chairperson, on behalf of the ANC I move without notice:

That the Council-

notes that from 3 to 7 October 2011 the select committees of the NCOP and the portfolio committees in the KwaZulu-Natal legislature visited Qedusizi Women's Agricultural Project located at Msinga along the banks of the Tugela River;

further notes that this project is run by 49 women, and despite its enormous social and economic potential, the project is faced with a number of challenges that inhibit its effectiveness, such as:

(a) a lack of appropriate skills and training for the women;

(b) a lack of appropriate storage facilities to keep their products fresh for selling;

(c) the absence of an appropriate market to sell the crops produced;

(d) a lack of toilet facilities for the women at their workplace;

(e) the irrigation system's not functioning properly;

(f) a lack of water, despite its being on the banks of the Tugela River, due to the water pump's not being in proper working order; and

(g) a lack of resources and funding, and the like; and

takes this opportunity to call on the national and provincial departments responsible for agriculture, rural development and land reform, as well as the municipalities in the uMzinyathi district, to ensure that government's Comprehensive Rural Development Programme, which is focused on agrarian transformation, land reform and rural development ...

The CHAIRPERSON OF THE NCOP: Hon member, your time has expired. Can you move your motion? Your time has expired – just move your motion. Move the last portion of your motion.

Mr G G MOKGORO: I so move, Chair.

Motion agreed to in accordance with section 65 of the Constitution.

Ms M G BOROTO


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Mr G G MOKGORO

MAJOR PROBLEMS AND CHALLENGES FACING RURAL SCHOOLS

IN UMZINYATHI DISTRICT IN KWAZULU-NATAL

(Draft Resolution)

Ms M G BOROTO: Hon Chairperson, I move without notice:

That the Council-

notes with dismay the major problems and challenges facing many schools in the rural areas of the uMzinyathi district, mainly due to poor infrastructure or a lack of proper infrastructure and services, as well as the schools' being underresourced, understaffed and overcrowded;

further notes that since June this year several committees and delegations of the NCOP have visited various school projects, clinics and police stations, and have reported a number of transversal challenges, including:

(a) a lack of access to basic services such as water, electricity and sanitation;

(b) a lack of scholar transport;

(c) the nonexistence of or lacks in school sport facilities, storage facilities, toilets for teachers and learners, staff rooms, offices for the administration and the headmaster, libraries, laboratories and laboratory equipment;

(d) learners of different grades' sharing one classroom, and the like;

acknowledges that these problems and challenges undermine the ANC government's commitment to redressing the long years of racial and geographical inequities; and

takes this opportunity to call on all the relevant structures and particularly the MECs for education, transport and public works, as well as municipalities and school governing bodies, to urgently look at establishing a service delivery plan to address these challenges so that the children of uMzinyathi can also get quality education.

Motion agreed to in accordance with section 65 of the Constitution.

Mr W F FABER


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Ms M G BOROTO

LIVES OF PRESIDENT, DEPUTY PRESIDENT AND VIPs PUT AT RISK

(Draft Resolution)

Mr W F FABER: Hon Chairperson, on behalf of the DA I move without notice:

That the Council-

notes that the lives and safety of the President, Deputy President and other VIPs have been put at risk by their being transported by the SA Air Force and other related air charter transport without the necessary aviation safety guarantees prescribed by the SA National Defence Force, SANDF;

acknowledges that the Minister of Defence, Ms Lindiwe Sisulu, should see to it that irresponsibility and carelessness with regard to safety regulations to guarantee the lives of VIPs in government is not tolerated; and

calls on the Minister of Defence to acknowledge, in spite of her state of denial, that safe air transportation is required for South African government leadership and to provide the portfolio and select committees with the necessary budgetary information on aircraft to be purchased for the Deputy President.

The CHAIRPERSON OF THE NCOP: Order! You can't include the portfolio committee in your motion, because you belong to the NCOP; you can only talk about the select committee. We will amend that accordingly.

Mr J J GUNDA

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Mr W F FABER

25 NOVEMBER, WHITE RIBBON DAY

(Draft Resolution)

Mr J J GUNDA: Hon Chairperson, on behalf of the ID I move without notice:

That the Council-

(1) notes that 25 November is White Ribbon Day, which signifies the International Day for the Elimination of Violence against Women and also links with the 16 Days of Activism for no Violence against Women and Children, and men are especially encouraged to wear a white ribbon in support of this; and

(2) appeals to all South Africans to unite against all forms of violence in our society in order to strengthen the message and bridge the divides within our country.

Motion agreed to in accordance with section 65 of the Constitution.

The CHAIRPERSON OF THE NCOP: Order! I wish to return to the motion by the hon Faber. Is there any objection to the motion he moved? [Interjections.] There is an objection to the motion. In the light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.

Ms M P THEMBA


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Mr J J GUNDA

AWARD TO NATIONAL DEPARTMENT OF LABOUR

(Draft Resolution)

Ms M P THEMBA: Hon Chairperson, I move without notice:

That the Council-

notes with a great sense of appreciation that the national Department of Labour has been given the award by the Southern African Institute of Government Auditors as the best performing national department, in pursuit of excellence, for its departmental annual report;

further notes that this award, one of the Annual Public Sector Reporting Awards, is bestowed on departments that excel in financial management and adherence to the Public Finance Management Act and Treasury regulations;

acknowledges that this is awarded by experts from the Office of the Accountant-General, the Office of the Auditor–General and academia;

further acknowledges that the department received a score of 92,84, which is considered one of the most consistently high scores over the last three years; and

takes this opportunity to congratulate the department on this achievement, and urges all other departments to follow the example set by the Department of Labour in pursuit of sound financial management and good governance.

Motion agreed to in accordance with section 65 of the Constitution.

Ms B V MNCUBE

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Ms M P THEMBA

NATIONAL SCHOOL NUTRITION PROGRAMME

(Draft Resolution)

Ms B V MNCUBE: Hon Chairperson, I move without notice:

That the Council-

(1) notes that there are 449 schools that are benefiting from the National School Nutrition Programme in the uMzinyathi district and that 350 of the 449 schools were classified as among the poorest;

further notes that since the programme was extended to secondary schools in 2009, many schools across the district have witnessed a sharp increase in learner enrolment; and

takes this opportunity to express its profound appreciation to the province of KwaZulu-Natal for showing decisive leadership in breaking the social barriers that prevent poor learners from accessing education.

Motion agreed to in accordance with section 65 of the Constitution.

The CHAIRPERSON OF THE NCOP: Order! I call on the hon Joseph.

Mr D JOSEPH: Thank you, hon Chair. I withdraw my request to move a motion.

Mr D D GAMEDE


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Ms B V MNCUBE

LAUNCH OF CONSTRUCTION OF RICHARDS BAY IDZ

(Draft Resolution)

Mr D D GAMEDE: Chairperson, I move without notice:

That the Council-

(1) notes that almost two months ago the Premier of KwaZulu-Natal, Dr Zweli Mkhize, and the MEC for Economic Development, Mike Mabuyakhulu, officially launched the construction of the Richards Bay Industrial Development Zone, IDZ, in a sod-turning ceremony that was held on 6 September 2011;

(2) further notes that the Richards Bay IDZ is part of the KwaZulu-Natal government's strategic intervention to create jobs and wage a war against poverty and unemployment;

(3) also notes that the Richards Bay IDZ is intended to be one of the economic hubs of the KwaZulu-Natal province; and

takes the opportunity to congratulate Premier Mkhize and MEC Mabuyakhulu, as well as the Speaker of the KwaZulu-Natal legislature, hon Neliswa Nkonyeni, for their decisive intervention and utmost dedication to turning KwaZulu-Natal province into the second economic hub of the country and for the fact that the people of KwaZulu-Natal will benefit from the rich, strategic sea ports surrounding the province.

Motion agreed to in accordance with section 65 of the Constitution.

Ms N W MAGADLA


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Mr D D GAMEDE

UNVEILING OF MEMORIAL STONES AND TOMBSTONES IN MAHHEHLE

(Draft Resolution)

Ms N W MAGADLA: Chairperson, on behalf of the ANC I move without notice:

That the Council-

(1) notes with a great sense of pride and utmost humility the KwaZulu-Natal Premier's unveiling of the memorial stones and tombstones for victims of ghastly political violence in Mahhehle, outside Ixopo, and Donnybrook last weekend, 6 November 2011; ... –

that happened in my region, Chair, and I continue –

(2) further notes that the tombstones were unveiled in honour of the 14 people who were massacred in Mahhehle when attackers surprised founding members of the ANC who were meeting in the area;

(3) notes that the victims were shot as they fled, among them a mother with her two-month-old baby on her back who were both killed by a stray bullet; and

(4) takes this opportunity to congratulate the Premier Dr Zweli Mkhize and his government for erecting and unveiling the remembrance stones that are set to remind our people of the price that our people paid in the fight for democracy and the thousands of lives lost and families displaced by the ruthless violence that engulfed many communities across South Africa, especially in KwaZulu-Natal province.

Motion agreed to in accordance with section 65 of the Constitution.

Mr R A LEES


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Ms N W MAGADLA

PARTY OF DELIVERY IS DA

(Draft Resolution)

Mr R A LEES: Hon Chairperson, on behalf of the DA I move without notice:

That the Council-

(1) notes-

(a) that the DA respects and upholds the Constitution of South Africa;

(b) that the DA stands for an open opportunity society for all, where all people can achieve their full potential;

(c) that the DA is a party of good governance, with an alternative plan to achieve an 8% economic growth rate that will create the jobs required for our unemployed people, whereas the Development Bank of Southern Africa, DBSA, believes that South Africa requires a 10% growth rate in order to create the five million job target of the National Growth Path; and

(2) therefore calls upon the voters of South Africa to see through the 16 years of ANC promises and to vote for the DA, a party of delivery and the only alternative for a prosperous future for all South Africans.

The CHAIRPERSON OF THE NCOP: Order! Are there any objections to the motion? [Interjections.] There are. In the light of the objections, the motion may not be proceeded with. The motion without notice will now becomes a notice of motion.

Mr M H MOKGOBI


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Mr R A LEES

BETTER LIFE FOR PEOPLE UNDER UMZINYATHI MUNICIPALITY

(Draft Resolution)

Mr M H MOKGOBI: Chairperson, on behalf of the ANC I move without notice:

That the Council-

(1) notes with the utmost concern the levels of poverty and unemployment facing the people under uMzinyathi District Municipality, with many of them suffering from massive backlogs, that is, shortages of water, electricity and houses;

(2) also notes that these backlogs are largely as a result of the centuries of immense economic and social marginalisation and neglect that the people of South Africa suffered under apartheid;

(3) further notes that since the election of a new council in the last local government elections on 18 May 2011, the people of uMzinyathi have seen a new dawn in leadership and have a great sense of hope that their lives will change for the better;

(4) acknowledges that since May 2011 several infrastructure projects have been implemented, including new tarred roads and the renovation of public facilities, and that the province of KwaZulu-Natal and the national government are in the process of implementing several projects to develop this area and bring a better life for the people of uMzinyathi district; and

(4) takes this opportunity to commend the municipality and the provincial government, especially the premier Dr Zweli Mkhize, for their commitment to bringing development and a better life for the people of uMzinyathi district.

Motion agreed to in accordance with section 65 of the Constitution.

Mr B L MASHILE

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Mr M H MOKGOBI

CONGRATULATIONS TO PEOPLE OF UMZINYATHI DISTRICT

(Draft Resolution)

Mr B L MASHILE: Chairperson, I move without notice:

That the Council-

(1) notes with utmost appreciation the sentiments expressed by the people of uMzinyathi district and their positive reception of the NCOP's decision to bring our Parliament to them, especially in Nquthu where many people have very little contact with national public representatives;

(2) further notes that the decision to host the Taking Parliament to the People programme in uMzinyathi district was informed by our national Parliament and the ANC's commitment to ensuring that our people govern and that both Parliament and government engage with the people on the challenges that they face and the measures necessary to ensure that all our people enjoy a better quality of life; and

(3) takes this opportunity to congratulate the people of uMzinyathi for using this parliamentary platform to raise their concerns and suggestions to make their lives better.

Motion agreed to in accordance with section 65 of the Constitution.

Mrs E C VAN LINGEN


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Mr B L MASHILE

APPRECIATION EXPRESSED TO PEOPLE OF UMZINYATHI DISTRICT

(Draft Resolution)

Mrs E C VAN LINGEN: Hon Chairperson, on behalf of the DA, I

move without notice:

That the Council-

(1) notes that the members of the DA in the NCOP wish to convey their appreciation to the community in Nquthu in the uMzinyathi District Municipality for hosting a Parliament to the People event in their area and we invite the community to ... [Interjection.]

The CHAIRPERSON OF THE NCOP: Order! Order, hon Mrs Van Lingen! I see the hon Mr Tau.

Mr R J TAU: Thank you very much, Chair. On a point of order: In terms of the Rules of this House I would like to point out that the motion that the member is now moving is the same as the motion that hon Mashile has just moved, and that there was no objection to that motion, which sought to express appreciation for the fact that we are appreciated and welcomed in the district.

The CHAIRPERSON OF THE NCOP: I am not too sure whether they are the same. Are they?

HON MEMBERS: Yes.

The CHAIRPERSON OF THE NCOP: All right. You should be fine, Mrs Van Lingen. They are the same motion.

Mrs E C VAN LINGEN: [Inaudible.]

The CHAIRPERSON OF THE NCOP: All right.

Mr F ADAMS

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Mr R J TAU

DA LEADER IN NATIONAL ASSEMBLY, LINDIWE MAZIBUKO, CRITICISED

(Draft Resolution)

Mr F ADAMS: Chairperson, I move without notice:

That the Council-

(1) notes that the newly elected parliamentary leader of the DA in the National Assembly, who has been called the "tea girl" by the ANC Youth League President, has taken a decision to charge one of the black DA leaders, Mashishi, for criticising her for being a fake politician without any base in the township, or a black madam; and

(2) takes this opportunity to reassert its view that hon Lindiwe Mazibuko was appointed to wage an attack on dissident black views in the DA.

The CHAIRPERSON OF THE NCOP: Order! Are there any objections to the motion? [Interjections.] There are. In the light of the objections, the motion may not be proceeded with. The motion without notice will now becomes a notice of motion.

Mr C J DE BEER


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Mr F ADAMS

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE

ON REVISED FISCAL FRAMEWORK

The CHAIRPERSON OF THE NCOP: Order! I now call upon the hon Mr C J de Beer. [Interjections.] You are asked to come to the podium – you are very important! [Laughter.]

Mr C J DE BEER: Hon Chairperson, the Select Committee on Finance conducted its work in terms of section 12(5) of the Money Bills Amendment Procedure and Related Matters Act of 2009. The committees on finance in the National Assembly and the NCOP jointly received a briefing from the Minister of Finance and the National Treasury on 26 October 2011. Public hearings to comply with the principle of public participation were held on 1 November 2011. The Financial and Fiscal Commission, FFC, Business Unity South Africa, Busa, and the People's Budget Coalition made their input during the public hearings. The committee deliberated on the Revised Fiscal Framework on 3 and 4 November 2011.

The Minister of Finance tabled the Medium-Term Budget Policy Statement, MTBPS, in an uncertain and volatile global context. The global environment poses a risk to world economic recovery, as well as to the outlook for our own South African economy. Even the Eurozone deal will have to be followed by a plan to generate growth in Europe. South Africa also has its own challenges of unemployment, low growth and poverty.

We must thank the Minister of Finance and the National Treasury for the way they have guided South Africa through this international economic turbulence, which is not over yet. Although the economic recovery is slow, we have sound financial fundamentals supporting growth and financial stability.

But, South Africa needs much faster growth, sustained over a decade or more, to reduce poverty and unemployment in line with the objectives set out in the New Growth Path. A countercyclical fiscal approach is crucial to both long-term growth and sustainability in public finances.

Having considered the 2011 MTBPS and the public submissions, the committee observed the following. The 2011 MTBPS sets out a fiscal framework that is projected to narrow the gap between government spending and revenue, while providing support to the economy and strengthening infrastructure investments for sustainable long-term growth.

The National Treasury indicated that South Africa's financial institutions are well capitalised and government debt is moderate as compared with the European countries, and a slow economic growth, falling tax revenue and uncertain financial conditions confront many of South Africa's trading partners and other developing countries.

The GDP growth is lower than the 2011 National Budget forecast and is expected to remain moderate. It is thus expected to be 3,1% in the 2011-12 financial year and 3,4% in the 2012-13 financial year.

Furthermore, the committee observed that revenue collection has not yet recovered and the economic outlook is uncertain – the deficit of 5,5% of GDP projected for this year, moderating to about 3,3 % over the MTEF, and government debt projected to stabilise at approximately 40% of the GDP in the 2015-16 financial year.

The committee observed with concern the increase in the state wage bill from 31% to 42% in the previous four-year period. This is a concern, since it has resulted in a high cost of production and low growth in job creation. Government has been the main employer and there is a need for a firm commitment by the business sector with regard to job creation in order to realise the ultimate goal of creating 5 million jobs by 2020.

Young people and the less skilled have yet to see economic recovery translate into jobs, which does not address government priorities regarding the creation of decent work and sustainable livelihoods.

The committee welcomes the allocation of R25 billion to stimulate the economy. Underspending on infrastructure has been an ongoing problem and the key challenge has been the shortage of relevant skills. A shift in government expenditure is welcomed, and more emphasis should be on bulk infrastructure development.

There is a need for savings in all government departments, with a need to focus on the composition of spending, and addressing inefficiency, extravagance and waste. The committee further expresses its support for the comment made by the Minister of Finance that government departments need to identify and report on savings initiatives.

There is a further need to ensure that Parliament plays a role of effective oversight over the executive in order to improve operational and financial excellence in government departments and its entities. The fiscal framework must be aligned to the New Growth Path, among other objectives. The committee is looking forward to National Treasury's publishing the long-term fiscal report in 2012.

Having considered the Revised Fiscal Framework, the Select Committee on Finance recommends the following. The National Treasury should launch a campaign to educate the nation about the importance of saving and the broad implications, both for their lives and the economy in general.

More support, including relaxation and/or reviewing of constraining laws, should be given to small business enterprises to create jobs.

The National Treasury should expedite infrastructural development through partnerships with the private sector, and these partnerships will also require the review of public-private partnerships in their current form.

The National Treasury and parliamentary committees should place greater emphasis on budget performance to achieve the target growth rate.

The government wage bill and recurrent expenditure should be closely monitored and controlled, and all stakeholders, particularly the unions and the National Economic Development and Labour Council, Nedlac, should be engaged to come up with a lasting and sustainable solution.

The committee supports the initiatives by the National Treasury to reduce the wage bill from 42% to an acceptable ratio in the MTEF period.

The National Treasury should intensify its monitoring of monies borrowed for infrastructural development, and ensure that they are spent on infrastructure investment.

The proposed fiscal framework should take into account the need to shift the creation of economic activities to the rural communities as part of the rural development strategy.

The Department of Public Works should ensure competitive pricing when entering into lease or rental agreements on behalf of the state, considering the inclusion of a no cost escalation clause for the first three years of the lease term.

National Treasury should advise the Department of Public Works to minimise any escalation clauses in new building contracts and to ensure that professional fees are negotiated down to the minimum level.

While growth is expected to pick up over the medium-term, structural reforms are required to set the economy on a different trajectory which increases labour absorption, raises competitiveness and ensures that the benefits of growth are shared.

Government should ensure that fiscal support for lower wage employees and new entrants to the labour market is strengthened, including the introduction of the youth wage subsidy as announced by the Minister.

Community work programmes over the medium-term should support low-income households and bring more people into the labour market, and this should be strengthened.

The Minister of Finance should provide the committee with a detailed report on plans to eliminate wasteful and irregular expenditure from the public finance system.

Hon Chairperson, I propose that the Council accepts the report on the 2011 Revised Fiscal Framework.

Debate concluded.

Question put: That the Report be adopted.

The CHAIRPERSON OF THE NCOP: The Report has been tabled before you. You have the Report in front of you currently. In accordance with Rule 71, I shall first allow provinces the opportunity to make a declaration of vote if they so wish. Is there any province that wishes to do so? [Interjections.] No? No province wishes to make a declaration of vote? Mr Lees?

Mr R A LEES: Mr Chairman, just on a point of clarification: Is it provinces or ... [Inaudible.]

The CHAIRPERSON OF THE NCOP: Mr Lees, in terms of our Rules – in accordance with Rule 71 – I'm saying I shall first allow provinces the opportunity to make their declaration of vote if they so wish. Now, I don't know which province you are representing to make a declaration. Are you making a declaration?

Mr R A LEES: [Inaudible.]

The CHAIRPERSON OF THE NCOP: You are withdrawing that?

Mr R A LEES: [Inaudible.]

The CHAIRPERSON OF THE NCOP: Okay.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.

AGAINST: Western Cape.

Report accordingly adopted in accordance with section 65 of the Constitution.

The Council adjourned at 17:30.


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