Hansard: JS: Debate on the State-of-the-nation Address

House: Joint (NA + NCOP)

Date of Meeting: 18 Jun 2014

Summary

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Minutes

WEDNESDAY, 18 JUNE 2014

PROCEEDINGS OF THE JOINT SITTING

__________

DEBATE ON PRESIDENT'S STATE OF THE NATION ADDRESS

The MINISTER IN THE PRESIDENCY: Madam Chairperson of the NCOP, His Excellency President Jacob Zuma, hon Deputy President Ramaphosa, hon members and distinguished guests, we have now entered the second phase of our democratic transition. Our focus during this phase will be on placing our economy on a qualitatively different path, one that eliminates poverty and substantially reduces unemployment, creates sustainable livelihoods and reduces inequality. This is the basis of our programme of radical socioeconomic transformation, which the President spoke about last night.

The Twenty Year Review comprehensively identified the substantial progress that has been made since 1994 and the challenges that still need to be overcome. It showed unequivocally that South Africa is now a much better place to live in than it was in 1994. However, despite the strides made, the challenges still facing our country are immense. Our economy is still too reliant on exporting mineral resources, it is also still overconcentrated in a relatively few large companies, and it is still largely owned and controlled by a racial minority. As indicated by the President, the National Development Plan provides the blueprint for what we need to do to address these challenges and to achieve our socioeconomic objectives.

We have to address these challenges in a context where the global economic recovery from the 2008 financial crisis is still tentative and subject to a number of risks, including geopolitical risks, deflation in developed economies, economic performance and ongoing weakness in the banking sector of the Eurozone, and the effects of tapering and quantitative easing in the United States. Developing economies are starting to recover but growth in emerging markets, while relatively better, has slowed.

These global conditions present both risks and opportunities for South Africa. The slowing of the Chinese economy in particular poses risks for commodity prices and South Africa's commodity exports. On the other hand, the recovery of developed markets and the growth momentum of the African continent present opportunities for growth in the agriculture, manufacturing and services sectors of our economy.

South Africa's relatively low economic growth rate since 2008, coupled with weak export performance, has weakened fiscal balances and resulted in a growing current account imbalance. By 2013, approximately R700 billion of foreign savings was required to fund our current account deficit. This dependence on foreign savings exposes our economy to significant financial sector risks and also increases our exposure to external shocks.

The 2014 first quarter gross domestic product data from Statistics SA indicates that our economy contracted in annualised terms by minus 0,6% over the previous quarter, partly as a result of the protracted strike in the platinum mining sector. Inflation is also rising, raising the prospect of a tightening of monetary policy, with potentially negative consequences for economic recovery, and the recent rating downgrades will probably raise our cost of borrowing.

It is therefore in this context that the President yesterday announced important measures to turn the situation around, particularly in the mining sector. These include a process led by the Deputy President to promote social dialogue around resolving our economic challenges; the implementation of the Framework Agreement for a Sustainable Mining Industry, which will now be led by our President; and the establishment of an Inter-Ministerial Committee on the Revitalisation of Distressed Mining Communities, which the President has asked me to lead.

Working together with mining companies and organised labour, we need to address urgently the intolerable situation where our mines, which produce so much wealth, are surrounded by human settlements characterised by squalor and poverty. As an urgent first step, government is working with the relevant municipalities to ensure the rule of law, peace and community stability, the improved delivery of water and sanitation services, the regular removal of refuse, the repair of roads and the provision of improved lighting in the informal settlements in all those mining areas. In addition, a range of projects are currently being planned and implemented between government and the mining houses to provide more than 30 000 housing units in the mining towns. For example, 11 low-cost housing projects are currently planned or under way in the Bojanala Platinum Complex in North West to provide more than 10 000 units in the Rustenburg Local Municipality, Madibeng Local Municipality and Moses Kotane Local Municipality. [Applause.] Our government is also engaging with the mining houses to ensure the broader transformation of the mining sector, in line with the commitments identified in the Mining Charter. As part of this process, a comprehensive study, aimed at transforming the migrant labour system, is under way.

The President also highlighted that ongoing workplace conflict such as we have experienced in the mining sector is impacting negatively on our ability to grow the economy. Workplace conflict and poor industrial relations result from inadequate progress in transforming the apartheid workplace, wage inequality, a lack of pay progression and career pathing for ordinary workers, pressures on the income of workers due to apartheid settlement patterns, poor communication between management and workers and discrimination based on race. Our government will continue to support change in order to address these root causes of workplace conflict, as well as to bolster respect for labour law procedures and to eliminate violence during strike action.

In addition to addressing workplace conflict, the President identified other key measures that we will be focusing on over the next five years to jump-start and radically transform the economy, in line with the National Development Plan. We will be addressing the shortage of electricity through the rapid development of a mix of energy sources, without excessive tariff hikes that would harm economic growth and the poor, and in a financially sustainable manner. In order to supplement Eskom's new electricity generation projects, we will be exploring the potential for base-load independent power producer contributions, building on the successful Independent Power Producer Programme for Renewable Energy.

The President also highlighted that we would be engaging with business to build investor confidence and to identify, as well as remove, obstacles to investment. Our government will streamline and improve the efficiency of regulatory processes in areas such as building licences, environmental impact assessments, company registration, tax compliance, work permits for scarce skills, mining and water licences, as well as access to municipal infrastructure services.

We will also continue to invest in economic, social and information and communications infrastructure, as spelt out in the National Infrastructure Plan. Infrastructure projects will be used to crowd in productive investment, through local procurement and by providing affordable quality services to investors. They will also provide employment and other

opportunities for women and youth and promote black economic empowerment.

We will diversify the economy to promote innovation, growth and employment from new opportunities, such as the green economy, the exporting of goods and services to growing African markets and shale and offshore oil and gas.

Through the industrialisation programme, local procurement and other measures, we will develop and promote job-creating sectors of the economy such as mining, manufacturing, agriculture and tourism. We will support smallholder farmers through developing co-operatives in marketing and supply services to enable small-scale producers to enter formal value chains and take advantage of economies of scale. We will also increase support for exploration, development and production in mining and address obstacles to the use of our minerals in manufacturing, including incentivising beneficiation through mining licensing.

As hon members know, we are a youthful society and the majority of the unemployed are young people. We will focus on increasing their educational, training and work opportunities for them through ongoing improvements to the education and training system and through internships and employment tax incentives, as well as by encouraging them and supporting our young people to start businesses themselves and become job creators.

One of the features of our radical economic transformation programme is the creation of a new Ministry for small business development. Small business must become the major contributor to job creation and the small business sector will play a key role in reducing concentration in the economy and breaking the stranglehold of monopolies.

We will also promote greater competition in the economy through strengthening the Competition Act to prevent monopoly pricing on intermediate inputs such as steel, heavy chemicals and wage goods, in order to make local manufacturing more competitive and to support infrastructure investment. [Applause.] The competition authorities will also be further developed to act against cartels and ensure public interests are adequately protected in mergers and acquisitions.

One of the focus areas of our engagement with business will be improving the implementation of the amended Broad­Based Black Economic Empowerment Act and the Employment Equity Act in order to transform the ownership, management and control of the economy. Our emphasis will be on creating black industrialists in productive sectors of the economy and developing a black, patriotic bourgeoisie. [Interjections.]

We will be redirecting development finance institutions to provide increased access. Why should only the white be bourgeoisie? [Laughter.] All of these measures are aimed at supporting an increase in our inclusive economic growth rate to over 5% by 2019, which will in turn generate the resources to fund expanded access to services and improve the quality of life of our people on a sustainable basis. While government will continue with its current countercyclical stance within a sustainable fiscal framework over the next five years, our current relatively low growth rate constrains our tax revenues and limits our borrowing capacity.

Because resources are scarce, we must identify the top priorities to enable acceleration of a better life for all, focusing on the main challenges of poverty, unemployment and inequality, and we must ensure that our plans are aligned to these priorities. As emphasised in the National Development Plan, we must also make better use of our limited resources by improving the effectiveness, efficiency and quality of implementation of our programmes.

In this regard, the Department of Performance Monitoring and Evaluation in the Presidency and the National Treasury are jointly carrying out expenditure reviews in order to identify inefficiencies and poorly performing programmes, so that resources can be redirected to priorities. The Presidency is also working together with departments to carry out evaluations of major government programmes with the aim of improving their efficiency and impact. Capacity is also being created in the Presidency to carry out thorough socioeconomic impact assessments of both new and existing legislation and regulations in order to ensure that they are aligned with the National Development Plan and reduce the risk of unintended consequences.

The National Development Plan stresses that building the capacity of the state is a prerequisite for the successful implementation of government policies. Over the next five years we will therefore be implementing measures to strengthen co-ordination, accountability and performance management in government. We will improve recruitment and skills development and strengthen procurement and supply chain management.

Over the next five years we will be focusing on forging a disciplined, people-centred and professional Public Service; empowering citizens to play a greater role in the development and building of an ethical Public Service. In order to ensure that we create stability in top management in the political administrative interface, an administrative head of the Public Service will be put in place in the Presidency.

We will also introduce an enhanced focus on implementation level planning, problem solving and continuous improvement. For example, we are working with the Malaysian government to implement its Big Fast Results methodology, which involves bringing key stakeholders together in a laboratory for intensive planning at a practical and detailed level, setting targets - which are made public, rigorous monitoring of progress with implementation and making the results public. Using this methodology, the government of Malaysia was able to register very impressive results in a short time.

We will be starting with two pilot projects, one in the economic sector, led by the Minister of Environmental Affairs, and one in health, led by the Minister of Health. The economic sector laboratory will focus on the ocean economy. Our analysis indicates that there is massive untapped economic potential related to our oceans, in the areas of marine transport and manufacturing, offshore oil and gas exploration, aquaculture and marine protection services and governance. [Applause.] It is estimated that unlocking the economic potential for oceans can contribute up to R177 billion to our GDP by 2033, compared to a mere R54 billion in 2010. This sector also has the potential to employ one-million people by 2030, compared to 316 000 in 2010.

The health sector laboratory will focus on bringing about sustained improvements in the quality of care provided in primary care clinics. This is one of the many reforms that are being implemented as part of the national health insurance initiative.

National departments responsible for concurrent functions will be required to play a stronger monitoring and supportive role with regard to the quality of services provided at municipal level. As indicated by the President, national and provincial departments responsible for local government will improve their monitoring and support roles at municipal levels.

Government has been implementing the National Development Plan since its adoption in September 2012. The Annual Performance Plans of national departments for the 2014-15 financial year, which were submitted to this House recently, reflect an alignment with the National Development Plan.

The Presidency has been working with national departments and the provincial and local spheres of government to develop the Medium-Term Strategic Framework for 2014 to 2019 as the first detailed five-year implementation plan for the National Development Plan. To emphasise how serious government is about implementing the NDP, and to ensure that the work of all departments is aligned to the National Development Plan, Treasury regulations have been amended to require departments to submit their draft strategic plans and annual performance plans to the Presidency. We will be checking the departments' plans to ensure that they reflect their relevant responsibilities and targets for implementing the National Development Plan, as set out in the Medium-Term Strategic Framework. This MTSF was approved in principle at the recent Cabinet lekgotla and it has been redefined to be released in a few weeks' time.

As hon members are aware, departments are required to submit their plans and performance plans to Parliament and to account to Parliament regarding their performance. We would like to commit the Presidency to collaborate with Parliament in this regard by sharing our planning, monitoring and evaluation information.

In conclusion, the National Development Plan is not just a plan of government, but a plan for the whole country. It is a peoples' plan and it has been adopted by the majority of our people and stakeholders. [Applause.] We are therefore calling on all South Africans, including labour, business and all organs of Public Service, to rally behind the implementation of the plan. I thank you. [Applause.]

The LEADER OF THE OPPOSITION

The MINISTER IN THE PRESIDENCY

The LEADER OF THE OPPOSITION: Chairperson of the National Council of Provinces, it is indeed my sincere honour to address this House today. I would like to greet the President, wish him all the best for the next while and say that it is good to have him back in good health. I also want to extend my greetings to our hon Deputy President, premiers, Ministers and their deputies, leaders of other political parties, hon members of this House and those who honoured us with their presence in the gallery.

I am a son of Soweto. I have grown up to see both the good and the bad of South Africa. I am a child of migrant labourers who moved to Gauteng to find work during those dark days of apartheid. I am the beneficiary of the freedom that former President Nelson Mandela fought for and the product of a decent education. I am a father of two little children. In fact, it is for them and all the children like them that we stand up and fight for the future and do the work that we are doing in this House.

I am a proud South African who loves this country deeply. In fact, I believe what we will be doing here over the course of the next five years - more so than during any previous Parliament - will define whether we can build a prosperous, inclusive future for South Africa or not. That is the responsibility and the task of this Fifth Parliament.

South Africa is a nation anchored in a history of violent and fervent racial oppression. Our people bear the scars of a history of 342 years in which one person's freedom came at the expense of another. During those dark days, our land cried out for a different future. Our nation cried out for hope. We have a unique opportunity to craft a future of hope together. But to do that, we need leaders with the courage to deliver bold new ideas. I am indeed sad to say that the President's address yesterday evening was an opportunity missed. It was a speech of a leader out of touch with the plight of the people he has the privilege to serve. [Applause.]

IsiXhosa:

Abantu bethu bayasokola kuba abafumani imisebenzi.

English:

One-third of our people cannot find work. The youth of South Africa are the worst affected by unemployment, with nearly four in 10 young South Africans without jobs. Yet last night the extent of unemployment and the crisis thereof was not mentioned in the President's address. How can we say we are a nation at work when millions of people are, in fact, out of work?

South Africa has again been downgraded by reputable ratings agencies. Our economy is shrinking and more people are losing their jobs because our government is held captive by the competing interests and factional wars at the heart of his party. We have heard speeches like this from President Jacob Zuma before. But his words have seldom been matched by the actions of his administration. The truth is that he cannot implement the very blueprint for South Africa's development, that is, the National Development Plan.

I believe we have potential. Our economy should be creating jobs and creating wealth for all South Africans, but, in fact, it is faltering at policy uncertainty. I am afraid that last night the President did not provide any clarity in this matter. While this government pays lip service to the NDP, it brings to this Parliament laws that kill jobs. The government speaks of job creation and investor confidence, but at the same time it enacts legislation that expropriates private business, allows corruption to thrive and kills small businesses.

If the NDP is to succeed, President Zuma must match last night's speech with real commitment to stop job-killing pieces of legislation. I therefore challenge him from this House to withdraw the Mineral and Petroleum Resources Development Amendment Bill; the Promotion and Protection of Investment Bill - which, in fact, does nothing of the sort; the Property Valuation Bill; the Expropriation Bill and the Infrastructure Development Bill. All these Bills contradict the NDP and undermine the economy and job creation.

The people of South Africa are calling out for leadership at a time of economic difficulty such as this. It is an undisputable fact that where the DA governs, more jobs are being created than anywhere else in South Africa. [Applause.] Since the end of 2012, South Africa's unemployed population has grown by 121 000, while, in fact, in the Western Cape the unemployed population has shrunk by 48 000 South Africans. This is because we are creating an environment where businesses can thrive and create jobs. We cut red tape so that people can participate quicker and less expensively; we create jobs for young people through apprenticeship and internship programmes; we invest in infrastructure and spend the budgets that we set for ourselves; we get clean audits and give loan funding to black-owned businesses. We do this while spending 76% of capital budgets in poor communities. Ultimately, we cut corruption. [Applause.] In fact, last night the President announced that he would stop government officials from doing business with the government. This is good news. But we passed this law five years ago in the Western Cape. Why has it taken so long for it to become a national law?

There is indeed a lot we can do to fire up this economy and create jobs. Let us make Black Economic Empowerment work so that it can create jobs; so that it can empower the men and women on the street. Let us make BEE incentivise small businesses and help entrepreneurs get their first opportunity in the economy. Let us make it truly to transform the economy by including millions of new people and not only a connected few. South Africa's future is indeed where all of us and many of us find work. Let us lease out government buildings that we do not use to small businesses at preferential rates. Let us give discounts on training and let us start a national venture capital fund that will allow for bold, new business ideas.

We agree with the President that South Africa requires radical transformation. By this we mean bold ideas that grow the economy and create jobs. Radical plans are not in themselves good simply because they are described as radical. It is just like wearing a beret - which does not make you a revolutionary. [Applause.] [Laughter.]

The CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: Order! Please continue. Order!

The LEADER OF THE OPPOSITION: In fact, with absolutely no details of these proposed radical transformative plans given yesterday, we must without fail call them empty promises. [Interjections.]

The CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: Order! Please continue, hon Maimane.

The LEADER OF THE OPPOSITION: I will do so, thank you, Chair. [Applause.] I do believe that indeed the DA is the only party with radical, transformative economic plans. Our plans will see a revolution of small businesses where entrepreneurs thrive and they themselves become employers.

It is indeed puzzling that the hon President has just created a new Ministry for small business, yet gave absolutely no details on how small business can look forward to government support. In fact, we need to find new ideas; we need to foster new ways and, hon President, we cannot give up on bringing about new ideas to develop in this economy. We have to break down the barriers to entry for small businesses - not in five years' time; not after the Department of Small Business Development has spent billions on consultants and sub-committees, but now.

In fact, it is not the role of the state to create jobs. It is in fact the role of the state to help businesses create jobs. Most crucially, businesses must have a constant supply of electricity. It is a national scandal that this is not guaranteed to any one in South Africa. And it is clearly on record that the government was definitely informed of this crisis before it became this critical. What South Africa desperately sought was leadership on how to deal with load shedding tomorrow morning and the morning thereafter. Today, in Soweto, people are protesting because they have spent the past three days without electricity. Yet in yesterday's address, we saw no plan whatsoever on how to tackle the electricity supply problem immediately. While businesses fail and jobs are lost because of an unstable electricity supply, I really believe that the hon President ignores what Martin Luther King Jr referred to as the "fierce urgency of now".

While we see the long-term projects being proposed, there is no immediate plan. Without immediate electricity supply being consistent, this economy will decline further. This failure is among the most serious in this administration. The President spoke of re-introducing the Independent System and Market Operator Bill, which is a complete flip-flop on his government's previous public position. This Bill will make the electricity supply transparent and accountable. We have pushed for this Bill for many years. The DA has supported it and we now welcome the hon President to follow suit.

As people turn to starting their own small businesses, they need to emerge from a system of quality education. Indeed, in yesterday's address, the people of South Africa waited for the hon President to address the significant government failures in education. How does the department with the biggest budget from our national fiscus - and the biggest budget in Africa - deliver the worst maths and science education on the entire continent? Only 3% of Grade 9 learners passed a numeracy test in the 2013 Annual National Assessment. Of the 1,2 million learners who registered for Grade 1 in 2002, more than half dropped out of the school system before they got to Grade 12. Only 34% of the learners who started school in 2002 passed matric in 2013. These statistics must shame every single one of us, yet they were completely ignored in yesterday's address.

It is a consequence of this government's refusal to impose mandatory standards on teachers and its refusal to take action when results started to decline. The President said very little - two lines, in fact - about the violent crime that keeps our communities living in fear. He made only passing reference to the corruption that costs the people of this country R30 billion a year. This money should have been spent on schools, clinics, housing, policing and health provision.

The President said nothing about corruption in this government, which, I believe, begins right at the top. South Africa is very well versed in scandal after scandal and this must be attributed to this administration. The Public Protector has spoken and I now request the President to follow suit. The people of this nation have absolutely no explanation from their President on the damning allegations against the property built in Nkandla. Until the hon President fully explains himself on the undue benefit from state funds to his personal property, amounting to millions of rands, South Africans cannot trust his words. For these reasons, we must see the re-establishment of the Nkandla ad hoc committee in this Fifth Parliament.

The President did talk a lot about local government. What he did not mention was that four out of the 11 municipalities he listed last night are DA governed and that the consistently best-performing municipalities in the country were not even on his list. Our view is that for the NDP to succeed, we need to send our best to local government in order to deliver the dreams and ambitions of our people.

Last night the President spoke about cleaning up. His speech was an ideal opportunity for him to come clean about South Africa as far as the following is concerned: the economic crisis, job creation, the electricity crisis, the failing education system, the Public Protector's report and the National Director of Public Prosecutions – but he did not. Instead, he offered us future plans and the promise to hold his Cabinet Ministers to performance contracts. Well, this notion is welcomed – but where are the terms of agreement? Who will judge their performance? How will the people ensure that this is properly upheld? And what about the performance agreements signed five years ago?

Today I stand before this House and before South Africans and I am forever mindful of the reality of millions of South Africans who struggle every single day. I am mindful of and moved by the fear and distress that unemployment casts upon millions of my fellow South Africans. I am compelled to speak on behalf of those who were forgotten in the state of the nation address. [Interjections.] I am in fact compelled to speak out on behalf of the unemployed, who deserve a lot better in this life; more than this government has delivered. [Applause.] I am compelled to speak out for those who will lose their jobs as this economy contracts further. For the sake of South Africa, for the sake of our people, for the sake of the future of this beautiful land, let us live up to the title. Mr President, live up to the title of hon President! We cannot in fact afford five more years of more of the same. My call to the President is to have the hopes of all South Africans in mind. Let us write a new chapter with fresh ideas in the story of South Africa. Let us be bold, let us contest for these ideas. Let us contest for change. Let us contest for jobs. Morena boloka setjhaba sa heso. Nkosi sikelel' i-Afrika. God bless Africa. I thank you.

Mr J S MALEMA

The LEADER OF THE OPPOSITION

Mr J S MALEMA: Madam Chair, President of the Republic of South Africa and hon members of this Parliament, thank you for affording us the opportunity to respond to the state of the nation address delivered by our President. We want to acknowledge and greet the millions of South African workers, the poor, downtrodden and dejected masses of our people, particularly the one million plus South Africans who voted for the EFF to come to this Parliament and represent the agenda of economic freedom in our lifetime without any fear of contradiction.

Our people mandated this movement, the EFF, to come to speak on behalf of the homeless, the landless, domestic workers, security guards, farm workers, cleaners, waiters and waitresses, recipients of social grants, construction workers, the unemployed and the poverty-stricken masses of our people who are forgotten by the ruling elite, which is in bed with the oppressors and the imperialist forces. [Applauses.]

I thought it was going to be difficult for me to carry this mandate with serious commitment against the party that taught me everything I know today about politics. But this was made easy by seeing Mr Marthinus van Schalkwyk on the benches of the ruling party. I then quickly remembered that, by the way, we are not opposing the ANC we joined then, the ANC of Lawrence Phokanoka, but we are opposing the ANC of Marthinus van Schalkwyk and Cyril Ramaphosa. [Applause.] [Interjections.]

Mr President, when you spoke yesterday you reaffirmed our belief that we chose the correct path, because you no longer represent the hope of the hopeless masses of our people. Your speech yesterday was uninspiring and lacked a central theme, Mr President. No one will remember what you said last night except that we should clean on Mandela Day, which was the only issue you emphasised – maybe because you thought it was the simplest subject you had to deal with in the whole speech last night.

What was supposed to be the simplest subject for you has proven to be more complex than you thought, Mr President, because your cleaning instruction goes against the wishes of President Mandela. He said it is the individual's choice how they wish to remember him or celebrate his life. So, I am sorry, Mr President, I won't be cleaning on Mandela Day. I will be involved in more productive activities, and they will leave a long-lasting legacy in remembrance of our international icon. [Applause.] And those activities will include, among other things, the rebuilding of mud schools in the Eastern Cape and the closing up of potholes.

Mr B A RADEBE: Hon Chairperson, the speaker called the Deputy President of the Republic "Cyril Ramaphosa". I think as a member of this House he is "hon". Could you rule on that? Thank you.

The CHAIRPERSON OF THE NCOP: Hon Malema, the hon Deputy President of this House is an hon member of this House.

Mr J S MALEMA: No problem ... hon Cyril Ramaphosa. [Laughter.] Mr President, you tried to speak about radical socioeconomic change in your speech last night but nothing you said was radical. Instead, we heard a repetition of what has been said before. I know very well that your attempt to make radical economic change the central theme in your speech last night was a direct response to the existence of the EFF, or even an attempt to delegitimise it ... [Interjections.] ... but you successfully failed just as you did when you introduced the red beret to counter that of the EFF during the election campaign.

You and your party should stop playing with semantics, especially when they relate to a radical economic agenda because you lack courage and you have sold out the revolution. You don't have what it takes to lead the struggle for the economic emancipation of the black majority, particularly Africans. You are extremely scared of white people, particularly white monopoly capital. In the past 20 years you have defended the privilege of the white minority and continued with the exploitation and exclusion of the oppressed black majority.

The reason for this is that the elite pact that was forced on the people in 1994 does not allow for radical economic transformation and change. The pact defends the colonial and apartheid ownership patterns of the means of production, including property. The ANC is part of an elite pact that seeks to protect white monopoly capital and white minority privilege. This has led to the formation of the EFF because there was a political vacuum and nature does not allow a vacuum. [Applause.] The EFF is here to lead the struggle to dismantle this elite pact and to introduce the sunrise clauses.

The pact has even made you accept the wrong things, such as the laws that have run this Parliament for the past 20 years - for example, the Act of 1975 that made it compulsory for Members of Parliament to join a certain medical aid scheme. You have been part of this illegal and unconstitutional law for the past 20 years. It took the EFF less than 100 days to reject this law. [Applause.] And Parliament's lawyers have agreed with us that indeed this law is unconstitutional; a law you have complied with. [Applause.]

This elite pact is reflected in the fact that the most prominent statue at this Parliament is the statue of Louis Botha. The statue of Nelson Mandela is very small and hidden behind the statue of Louis Botha. Louis Botha is not our hero, and he cannot be a hero of a democratic South Africa. He is a colonial warmonger who fought for the exclusion of black and indigenous people from running their own country and affairs. It is people like this who made white South Africans think they were superior. If we continue celebrating them, we are equally perpetuating white supremacy.

The statue of Botha outside this Parliament must come down, because it represents nothing of what a democratic South Africa stands for. [Applause.] The statue represents backwardness and apartheid, and therefore it belongs in the dustbin of history and should be replaced with a bigger statue of Seaparankwe Rolihlahla Nelson Mandela. We will never have true friendship and peace if the white minority still behaved as if they were superior and we should remain inferior in our own country. All black people continue to learn the languages of white minorities as part of our attempt to reach out to them and create friendship, but with very little attempt from their side to learn at least one of our African languages, because they have the wrong mentality - that we must suck up to them.

These are some aspects of the legacies that people like Louis Botha have left us and they must be crushed. We must not celebrate anything that perpetuates white supremacy. As part of nation-building, maybe we need to take harsh steps by not celebrating any white person who does not speak or know at least one of the African languages. [Applause.] [Interjections.] If you as a black person has a white friend and he or she does not know your language, or take the initiative to learn your language or your culture, that person is no friend at all.

We need to undermine the legacy of apartheid through the celebration of our blackness, and we should unashamedly advance the political, social and economic liberation of blacks in general and Africans in particular. We must do away with self-hate and embrace who we are and what we stand for. The time for the black majority to benefit from the natural and mineral resources and the beauty of their country is now and it can never be postponed. [Applause.]

This is where we start. Now we should deal with the politics of what you raised yesterday. You have promised jobs before, and you have repeatedly failed to create jobs. In your first address to this House as President, you promised to create 500 000 jobs in six months, yet you failed and no one held you accountable.

Our people are being called on to celebrate 20 years of freedom. We really do not know what they should celebrate because the past 20 years have been 20 years of suffering for the poorest of the poor.

Mnr P J GROENEWALD: Agb Speaker, is die agb lid bereid om 'n vraag te beantwoord? Dit is 'n baie maklike vraag. Ek wil vir hom vra: Why is he delivering his speech in a white man's language, that of English, and not in his own mother tongue? [Laughter.]

The CHAIRPERSON OF THE NCOP: Hon Malema, are you prepared to respond to the question?

Mr J S MALEMA: Chairperson, I have no time for racist questions. [Interjections.]

Our people are called on to celebrate 20 years of freedom. We really do not know what they should celebrate because the past 20 years have been 20 years of suffering for the poorest of the poor. It has been 20 years of joblessness and unemployment for the majority of our people, in particular the youth. Thirty-five percent of South Africans capable of working are unemployed and the majority of those who are employed are paid very low salaries.

Mr President, whatever you have said about jobs has been as false and inconsistent as the performance of your party for the past 20 years. However you look at it, in 1995 unemployment stood at 15%, and now, at this moment, it stands at 25% - or 36% with an expanded definition. Seventy percent of this demographic is the youth. This is your legacy: you have more than doubled unemployment. More than half of those who are working earn R3 300 or less. A third of all workers are now employed through labour brokers and, might I remind you, you said in 2009 that 2014 would be the year by which you would have halved unemployment.

You also promised to distribute 30% of the land in this very year. You promised to halve poverty by 2014. You promised to provide security of tenure to 400 000 households of people who live in informal settlements. You keep making the same promises and misleading this House - and hon members clap hands. They encourage this mediocrity, lack of leadership and misleading of the nation and the poor.

You are a man of tradition, Mr President; a tradition of empty promises. Now knowing you will not be here in 2030, please say nothing about 2030, because you will not be here. [Applause.]

The President said a minimum wage shall be investigated. There is no need to investigate. This House must show leadership and courage. The workers have already shown the way. For five months now, workers in the platinum belt have been on strike, which demonstrates their genuine determination. They were striking for R12 500 when the ANC massacred 34 of them two years ago for doing so. In honour of those who died at Marikana, let this House legislate for R12 500. This will be a sign of remorse and regret for the Marikana massacre. We also demand the establishment of a parliamentary commission on the conditions and salaries of mine workers, including the auditing of the financial books ...

The CHAIRPERSON OF THE NCOP: Order, Mr Malema!

Mr B A RADEBE: Chairperson, on a point of order: The speaker said the ANC government massacred people two years ago. Is that parliamentary? Is there any proof of that? Could you rule on that, Chairperson?

The CHAIRPERSON OF THE NCOP: Order! Mr Malema?

Mr J S MALEMA: I maintain that, Chairperson.

The CHAIRPERSON OF THE NCOP: Mr Malema ...

Mr J S MALEMA: The ANC government massacred people at Marikana. Those members of the police were representing the ANC government.

The CHAIRPERSON OF THE NCOP: Mr Malema!

Mr J S MALEMA: I am not going to withdraw my statement, Chairperson.

The CHAIRPERSON OF THE NCOP: Morena!

Mr J S MALEMA: That is not going to happen.

The CHAIRPERSON OF THE NCOP: Hon Malema, hon Malema ...

Mr J S MALEMA: I'm all yours, Chair.

The CHAIRPERSON OF THE NCOP: Hon Malema!

Mr J S MALEMA: Hon Chair.

The CHAIRPERSON OF THE NCOP: Please accept that this House and all our Houses of Parliament have simple Rules to follow in a debate. The last time we said, hold your horses, because we were taking a point of order. I was asked to rule, and even before I gave you the go-ahead, you were on. Please do not do that again. The hon member of the ANC raised a point. You contested that point – you said you were sustaining it. I wish to take this point on advice, hon members, and I will rule on it tomorrow, because it is not an open-and-shut statement that you make and conclude with. There are many implications with it. I would like to be properly advised when I come back to this House with a ruling tomorrow. You may continue, Ntate Malema.

Mr J S MALEMA: We call for a parliamentary commission on the conditions and salaries of mine workers, including the auditing of the financial books of all the mines by the state, to ascertain for ourselves how much the mining sector is making in this country, because we do not trust the current financial disclosure by the mining sector.

Mr President, you spoke about radical socioeconomic change. And if indeed you meant what you said, then you would agree with me that there is nothing radical about preserving the current exploitative economic structure. Otherwise what has been suggested here is merely old wine in a new bottle. We are back to the Gear plan by another name, which Blade Nzimande called "the 1996 class project" and the "the most serious strategic threat to the national democratic revolution". [Interjections.]

The CHAIRPERSON OF THE NCOP: Order, members! [Interjections.] Order, members! Hon Malema, there is an hon Blade Nzimande in this House.

Mr J S MALEMA: Hon Blade Nzimande, in his factional battles with President Thabo Mbeki, said ...

The CHAIRPERSON OF THE NCOP: Order, hon Malema! Hon Malema, I will not have this House degenerate into this. Please debate the state of the nation address. The factional battles and whatever – let them stay ... [Inaudible.]

Mr J S MALEMA: No, no, no, Chair. I don't agree with that. [Interjections.] No, I don't agree with that.

The CHAIRPERSON OF THE NCOP: Order, hon Malema!

Mr J S MALEMA: No, you are not going to tell me, Chair, how I must debate. [Interjections.] You are not going to tell me how I must debate. [Interjections.] No, no, I can't be told what to say.

The CHAIRPERSON OF THE NCOP: Hon Malema! [Interjections.] Order, hon members! [Interjections.] Hon members, I am quite fit to sit in this chair. Hon Malema, we have taken you through the Rules of the Houses. You will desist from making disparaging remarks about the person of hon members of this House. [Interjections.]

Mr N P KHOZA: On a point of order, Chair. The Chairperson is out of order. [Interjections.] When the hon Mmusi Maimane referred to the factional battles in the ANC, the Chairperson did not call him to order. So the Chairperson must be consistent in the application of the Rules of Parliament.

The CHAIRPERSON OF THE NCOP: Order! This Chairperson is very consistent. The hon Maimane referred to the factional battles in the party. He did not apportion them to a particular member of this House. Hon Malema, withdraw those remarks.

Mr J S MALEMA: Hon Chair?

The CHAIRPERSON OF THE NCOP: ... on the factional tendencies or otherwise of the hon Blade Nzimande.

Mr J S MALEMA: Hon Chair, I withdraw them.

The CHAIRPERSON OF THE NCOP: Thank you. You may proceed.

Mr J S MALEMA: Mr President, you clearly do not know what radical economic transformation means. What is radical about the EPWP, the Expanded Public Works Programme? What is radical about buying stolen land? Maybe we must give you a few tips on what is radical economic transformation. You must be prepared, if you want to advance this agenda of radical transformation, to expropriate the stolen land without compensation. [Applause.] You must be prepared to nationalise the mines, the banks and other strategic sectors of the economy. You must be prepared, Mr President, to protect local industries and ensure that they continue to be productive. Mr President, you must provide free quality education up until tertiary level. Mr President, you cannot celebrate the two glorified high schools, which are wrongly called universities, in the Northern Cape and Mpumalanga, because the two of them are going to take only 350 people.

We need to engage, Mr President, in a deliberate programme to send 10 000 students outside the country to the best of the best universities, because all the countries that succeeded sent their learners and their youth to learn outside their countries.

Mr President, you were on paraffin speed building stadiums for the 2010 Soccer World Cup, but you are failing to build schools and you are failing to build basic things like toilets.

Radical economic transformation means we must play ...

The CHAIRPERSON OF THE NCOP: Hon Malema, I'm afraid your time is up. Thank you very much.

Mr J S MALEMA: No, but those points of order ate into my time, Chairperson. [Interjections.]

The CHAIRPERSON OF THE NCOP: Hon Malema! [Interjections.]

Mr J S MALEMA: Ahh, Chair! Mr President, …

LANGUAGE HAS CHANGED to Sepedi:

Le ge o ka e tima meetse, o tla bona e nwele. [Applause.]

Prince M G BUTHELEZI

MR J S MALEMA

Prince M G BUTHELEZI: Hon Chairperson of the NCOP, hon Speaker, His Excellency the President, His Excellency the Deputy President, hon Ministers, hon Deputy Ministers, hon members, we appreciate the President's mention of the National Development Plan, for this remains the best wish list for any nation and particularly for our nation. But beyond that, yesterday's opening of the Fifth Parliament read like a predictable script. We didn't expect to hear anything new or different from what the President said to us in February, and indeed he complied. That is not good for the country.

There is no sign of change. Even in the economic dire straits that see our country being downgraded, the President continues with the empty promises of his party's manifesto. Our country's governance remains in the hands of a party that seems to have lost its way.

I have warned repeatedly of the danger in promising people what cannot be delivered. Citizens may have renewed their mandate to the ruling party very clearly, but through service delivery protests across South Africa, they declare that the mandate is not being fulfilled. How much longer will they wait, when nothing changes? Even as we met yesterday there were ructions in Tshwane.

For 20 years, the IFP has been the voice of reason in our democratic Parliament. [Interjections.] Yes, we do not deny that. It is a fact and you can google it.

The CHAIRPERSON OF THE NCOP: Hon Buthelezi, please address the House and the Chair.

Prince M G BUTHELEZI: But I have a parliamentary right to do that, Chair. [Laughter.]

The CHAIRPERSON OF THE NCOP: Please, sir.

Prince M G BUTHELEZI: Now, in a national discourse that is speeding towards division, volatility and racism, the IFP will remain the voice of reason.

In spite of our electoral losses, the IFP retained its position in this House in the elections this year as the fourth largest party nationally. We were not obliterated, as the doomsayers predicted. We were not relegated to being a provincial party. In every province of this country, the IFP found support among the people of Goodwill.

On behalf of this righteous remnant, who believes in fighting for the right thing, the right way, the IFP will work to restore integrity to our nation's leadership.

There comes a time in history when the voice of the few begins to dominate, not because it is loudest but because it speaks the words that are catalysts for the required change. I know this because I am among the few who have served in this Parliament for its full 20 years. Among the opposition, I alone have responded to the state of the nation address of four successive Presidents. I have witnessed the triumphs and tragedies of our nation's democratic Parliament.

The first triumph was the formation of a government of national unity through the interim Constitution, which secured seats in Cabinet for any party receiving more than 10% of the votes. On 27 April 1994, more than two million South Africans voted for the IFP, and we joined President Nelson Mandela's Cabinet to give our contribution to the full legislative reform of our country.

For five years we worked tirelessly, against steady opposition from within Cabinet itself, so that when President Thabo Mbeki opened the second Parliament in June 1999, I expressed my hope that the ensuing stage of governance would be characterised by a willingness to accept good and valuable ideas, irrespective of who proposed them.

With the opening of the Second Parliament, there was no longer a constitutional requirement for the ruling Party to tolerate opposition parties in Cabinet. Yet President Mbeki invited me, Dr Ben Ngubane and Mr Ben Skosana to serve as Ministers.

Initially, President Mbeki offered me the Deputy Presidency, but ANC leaders from KwaZulu-Natal, most notably our present hon President, demanded that in return the IFP give the premiership of KwaZulu-Natal to the ANC. It was a ruse that scuppered discussions, for they knew we would never sell out the electorate. Voters had asked for an IFP premier. It was not for us to give them the ANC. However, we also understood that the IFP was compelled by the wounds of the past to embrace reconciliation through shared governance, as much as the ANC was compelled by the wounds of the past to seek reconciliation. We hoped that as President Mbeki and I worked hand in hand at the highest levels of government, people on the ground, who had been divided by a 20-year-long, brutal, low-intensity civil war, would begin to reconcile. The IFP therefore made its contribution to the governance of our country for another five years.

In KwaZulu-Natal we set a standard of good and clean governance that has yet to be challenged, or even equalled. Time and again we steered our country's government back to reason and wisdom. Then tragedy struck. In the Third Parliament, the emerging leadership of the ANC spurned reconciliation and took the reins of governance in the white-knuckled grip of a party bent on domination. Recognising the chasm in integrity that was sure to open, the IFP became a moral opposition determined to protect democracy.

South Africa was rapidly encumbered with a growing crisis in leadership and moral credibility. From the highest levels of government there was denialism about crime, HIV and Aids and, finally, about the global economic meltdown.

History bears witness that my warnings were timely and true. The IFP has been the voice of reason in this House for 20 years. Unfortunately, history also bears witness to the revival of the ANC's programme to destroy the IFP, which Mr Mandela, as a man of integrity, confessed to in 2002. He said:

We have used every ammunition to destroy Buthelezi and we failed. He is still there. He is a formidable survivor. We cannot ignore him.

Whereas President Mbeki and I had pursued peace, our President seems driven to divide. While the rest of the country remembers the 1976 student uprising, His Excellency President Zuma remembers Boipatong. Why isolate Boipatong? Why not the Shell House massacre, in which, again, because of his integrity, Mr Mandela, standing where I am standing, stated that it was he who ordered the security at Shell House to shoot to kill?

Human life is the same in every tragedy, Mr President. Your party's people's war generated a cycle of violence. Even in Boipatong it was not the IFP that told hostel dwellers to react in the brutal manner they did to the continuous violence perpetrated against them. We mourned the brutal loss of life in Boipatong. It was a tragedy as much as any of the tragedies of that time.

Words, Mr President, can divide. But it is actions and not words that bring reconciliation. President Mbeki and I brought reconciliation when we unveiled a monument in Thokoza to fallen comrades from both our parties in October 1999. But now, Your Excellency, your party builds monuments to the ANC alone and fails to even invite the families of the ANC's victims.

I welcomed the President's invitation to meet with him in Durban in July 2010, and I reported it here because after Polokwane in 2009 he told me that the ANC and IFP should work together, as before. Yet, when we met, the President advised me to step down because of the ructions in my party. [Laughter.]

I explained that his advice would carry more weight were it not for the ANC's role in these ructions, and I laid before the President extensive evidence - standing right here - of a campaign of manipulation, violence and treachery that was being used by some in the ANC to divide and destabilise the IFP, through a faction led by the hon national chairperson of the NPF, the Deputy Minister of Science and Technology, Mrs KaMagwaza-Msibi. [Laughter.] [Interjections.]

The CHAIRPERSON OF THE NCOP: Order, hon members!

Prince M G BUTHELEZI: The President expressed surprise, even though much of what I said was documented in the media and the ANC Women's League was openly singing "Zanele is ours" in the KwaZulu-Natal Legislature. The President promised to intervene but he did not.

During the state of the nation address in 2011, I therefore brought all the evidence before Parliament - standing right here. The President did not dispute it, but still he did not intervene. Immediately after the 2011 elections, the hon Mrs kaMagwaza-Msibi led her new party into coalition with the ANC. After the 2014 elections, the President rewarded her with a position on his national executive. [Laughter.] [Applause.]

Mr N M KHUBISA: Chair, may I raise a point of order?

The CHAIRPERSON OF THE NCOP: Order! We have a point of order.

Prince M G BUTHELEZI: It seems the Women's League was right when they sang that Zanele belonged to the ANC.

The CHAIRPERSON OF THE NCOP: Hon Buthelezi, there is a point of order on the floor.

Prince M G BUTHELEZI: I did not hear that, hon Chair.

Mr N M KHUBISA: Hon Chair, can you please rule on whether the hon Buthelezi is sticking to his speech or veering off topic?

Prince M G BUTHELEZI: Chair, I will politely call that balderdash. [Laughter.]

Mr N M KHUBISA: On a point of order, Chair: Is the word "balderdash" parliamentary? [Laughter.]

Prince M G BUTHELEZI: Yes, it is the politest thing for saying the right thing. [Laughter.] [Applause.]

The CHAIRPERSON OF THE NCOP: Hon Buthelezi, please round up.

Prince M G BUTHELEZI: Just weeks ago, Mrs ... [Interjections.] There are so many interruptions.

The CHAIRPERSON OF THE NCOP: Hon members, please allow the hon Buthelezi to finish his speech.

Prince M G BUTHELEZI: Just weeks ago, the hon Deputy Minister of Science and Technology was accusing the ANC of dirty and barbaric tactics, violating their oath of office, perpetuating inequality and poverty, self-enrichment and corruption, particularly with regards to the President's house in Nkandla. Indeed, her vitriol led her supporters to drape a coffin in ANC colours. One must ask, what changed your mind, Deputy Minister?

For the ANC's part, it has gone from calling on the Public Protector to investigate the hon Deputy Minister for alleged misappropriation of state funds to saying her experience will contribute immensely to effective and efficient governance. [Applause.]

The DEPUTY MINISTER OF SCIENCE AND TECHNOLOGY

PRINCE M G BUTHELEZI

The DEPUTY MINISTER OF SCIENCE AND TECHNOLOGY: Hon Chairperson of the NCOP, Your Excellency President Zuma, Your Excellency Deputy President, members of the Cabinet, hon Members of Parliament, distinguished guests and members of the media, firstly the NFP wishes to convey its condolences to the family of the late Secretary to Parliament, Mr Michael Coetzee.

Secondly, I wish to record my deepest and most sincere appreciation to all members and supporters of the NFP who have expressed their confidence in us to serve them at this level. I am speaking on behalf of them. I am their voice. [Interjections.]

I am not going to worry about the utterances of Dr Buthelezi. I think they indicate bitterness; they are sour grapes. He is being disingenuous and spiteful. Therefore, I am not going to belittle myself by responding to them. [Applause.]

The members who constitute this assembly are privileged as they are chosen from among the millions to represent the people to the best of their ability. The NFP's entry into politics is deeply embedded in our commitment to serving the people of South Africa in a manner that makes each person a proud South African citizen.

All of us are guided by a common purpose that is clearly enshrined in the Constitution and more specifically in the Bill of Rights. The people have legitimate expectations of life and dignity, not only as individuals but also as families and communities. They yearn for peace. They yearn for harmony, prospects for their children, employment in a stable environment, basic amenities, a roof over their head and food on the table.

Over the past 20 years, we have made tremendous strides, notwithstanding the challenges bequeathed to us and the numerous obstacles faced in the transition from oppression to freedom. We need to acknowledge the progress that we have made. Yet there is still a great deal that needs attention.

The road ahead is long and difficult. Today, the common purpose of nation-building is compelling us to co-operate and reach out to one another beyond narrow, superficial differences that sow conflict and division. [Applause.]

The intentions of the President's address cannot be doubted. The address recognises the importance of economic growth as fundamental to a stable democracy and a necessary, although not sufficient, condition for reducing poverty. It recognises that the economy is functioning below its potential and the need to achieve a 5% target by 2019. It proposes various intervention measures to jump-start the economy.

However, numerous obstacles beset the implementation of some of the proposals. Our growth potential is challenged by chronic deficits in critical infrastructure and an economy exposed to global markets and volatility. There are many serious impediments, such as energy, water, transport, labour regulations, bureaucracy, weak administration at the point of delivery, skills and work ethics.

The President has placed great emphasis on the radical transformation of the energy sector and the need for structural changes in state-owned enterprises. The intention to develop an energy mix is welcomed, although the issue of nuclear energy is not without its inherent dangers. For example, it is extremely expensive, with concerns over safety and health.

However, while these plans will address the energy challenges in the next five years, the concern is the time lag between project implementation and delivery. There is no specific plan for short-term supply and reference has been made only to the Medupi project. No reference is made to integrated transport planning that links ports, rail and road between points of origin of products and destinations.

The creation of special economic zones, SEZs, around the country will no doubt increase our competitiveness. The location of these zones is critical in bringing benefits to the people. These zones must necessarily be located close to communities to minimise travel to work. The historic pattern of work zones has created the anomaly of the separation of workplace and residence, where the poorest have to travel the furthest. The high cost of these journeys places a financial burden on the household. The longer journey also increases travel time, which impacts on family life.

The NFP raises concerns about government's response to the rapid urbanisation of the country. While it is generally acknowledged that cities have the infrastructure support for industrialisation, South African cities are already burdened with an influx of population for which they cannot cater in terms of housing, basic amenities and jobs.

The phenomenon of hostel residences for single men, although provision would be made for families, is an apartheid creation that is destructive to family life. The consequence is that the household head of families in rural areas are mainly women. Socioeconomic conditions in hostels and mining areas need to be immediately attended to and home ownership expedited.

The invasion of land that is experienced in cities is the consequence of a policy that makes urban areas attractive places of work. The cities have not only attracted rural communities as places to find work but also many people from outside South Africa. The competition for jobs often results in xenophobic attacks on foreign citizens.

The cities of today cannot cope with the rising demand for employment, housing, transport, sanitation and other services. [Interjections.] [Time expired.] Thank you very much, hon Chairperson. [Applause.]

Cllr M NAWA (SALGA)

The DEPUTY MINISTER OF SCIENCE AND TECHNOLOGY

Cllr M NAWA (Salga): Hon Chairperson of the NCOP, His Excellency the President, His Excellency the Deputy President, as an organ of local government we take this opportunity to express Salga's sincere appreciation for being allowed this opportunity, for the first time, to comment on the issues raised by the President in his speech.

We are in agreement with the President that local government has come a long way since it was established. We have built a firm foundation indeed, one on which we should continue to build. We note that the President also acknowledged the successes achieved in various municipalities. In addition to the 11 municipalities highlighted by the President, we want to emphasise that many municipalities are doing well in improving their cities.

We want to mention that the City of Johannesburg has embarked on a complete social, economic, transportation and sporting infrastructure turnaround strategy. This includes the bus rapid transport system in local government. We also want the House to note that in 2014 the City of eThekwini received the highest international accolade as the city with the best water management standards in the world.

This is in addition to the significant contribution that local government has made in the expansion of social infrastructure and services to poor households in the form of a basket of social services, like free basic water, electricity, solid waste collection, sanitation and sewer connectivity. These services are sometimes unappreciated when there are demonstrations implying that local government is not doing anything.

The Census 2013 results have also illustrated firmly the profound contribution of local government to the country's development and key service delivery gains. This is contrary to the often disproportionate negative narratives sustained against municipalities.

While acknowledging these successes, we must confront the key challenges that continue to bedevil many of our municipalities, particularly on financial management and expenditure, planning and the delivery of basic services.

Regarding financial management and the improvement of audits, Salga is also rolling out a hands-on support programme to municipalities in financial distress; those who persistently attain disclaimers and adverse audit opinions. These shocking disclaimers in audit reports are unacceptable and must be dealt with as a matter of urgency. It is our collective ambition that in the near future there should be no disclaimers and adverse opinions in local government.

The socioeconomic conditions and other external factors contributing to distress in municipalities cannot be ignored. In many of our municipalities, the real impact of the 2009 global financial crisis is now being felt with the depression on citizens and business putting greater strain on already limited financial and human resources. Many inhabitants are unable to pay for services and this has a ripple effect on municipal capability. In my own district, the Bekkersdal case - with several mine closures in recent years and the consequential effects on the municipality - is an important one from which we should draw lessons for more proactive and coherent governance.

The mass infrastructure and related job creation interventions are therefore critical for addressing the socioeconomic challenges that are at the heart of much distress in local government. Their success will depend on greater intergovernmental support and collaboration around key projects in municipal areas, as well as on other initiatives aimed at improving the living conditions of our people. In this context, the approach of greater hands-on support, which national government will lead through the introduction of the Interministerial Task Team on Service Delivery, championed by Minister Gordhan, is welcome.

In relation to urbanisation, and as the President indicated, the Integrated Urban Development Framework, in which Salga is a key partner, must indeed provide a new deal for South African cities and towns, the engines of economic growth and spatial transformation. In particular, the finalisation of the full assignment of the housing function to the six metropolitans, as the first in the built environment chain, must be expedited without further delay. Equally important is the devolution of housing, central to integrated development and human settlements, to the other metropolitan and secondary and smaller cities on a graduated basis. Transport must also be a critical factor of development.

The potential economic dynamism of metropolitan municipalities cannot be achieved unless municipalities think holistically about issues such as housing, transport and spatial planning so that housing can be positioned well, with adequate access to public transport. Urbanisation requires new housing, extending services and improved public transport. The main challenge in planning for urban areas is to enable job creation linked to sustainable livelihoods and to establish well-performing human settlements. This should be at the heart of what cities do and how they perform.

Successful cities are the vital cogs to the economic objectives of our development and capability as the state, including our goals for overcoming poverty, inequality and unemployment. Let us equip our cities with the necessary institutional reforms to ensure that routine investment in built environment reverses the spatial legacies of apartheid.

Notwithstanding some of the challenges faced by many municipalities, we should not forget that we all live, work, pray and play in municipalities and the services we enjoy are for the most part provided by local government. All is indeed not doom and gloom. We should celebrate our successes as we build confidence in municipalities.

We appreciate what the President has raised when he profiled the 11 municipalities and we are sure that the entire Cabinet and public representatives will support the idea of better profiling local government.

We must consolidate the gains made to date by addressing some of the fundamental constraints hampering municipalities in our quest for effective development. The President's address highlighted some of the interventions and initiatives aimed at revitalising our municipal spaces. Let us all rally behind municipalities as the key players and implementers of the government's programme of action.

To this end, we are committed to working with our partners in government and the private sector to ensure that we integrate our approach to service delivery and that the developmental vision of local government is fully realised.

We are committed to doing what the President has said in support of local and district municipalities across the country, and we will work together to make sure that local government is properly profiled and functional. I thank you. [Applause.]

Mr Y I CARRIM

Cllr M NAWA

Mr Y I CARRIM: Chairperson, President, Deputy President, colleagues, the struggle for national liberation was increasingly waged for both political and economic liberation. My time says 16:55. Is that wrong? I know I have 15 minutes.

The CHAIRPERSON OF THE NCOP: Hon Carrim, you inherited minutes. I think we must adjust the time.

Mr Y I CARRIM: No, no, Chair! I'm quite happy with the extra six minutes. [Laughter.] Given the way the opposition has spoken, I am happy with those six minutes.

The CHAIRPERSON OF THE NCOP: Hon Carrim, you will ... [Inaudible.] ... next 15 minutes. Just use your 15 minutes.

Mr Y I CARRIM: Ah, that is tough. Okay, but my time starts now, doesn't it, Chair? Getting this clarity is not something that will be seen as part of my speaking time?

As I was saying before I rudely interrupted myself, the struggle for national liberation was increasingly waged for both political and economic liberation. The links between the political and economic aspects of liberation are there in the Freedom Charter. They were set out far more explicitly at the Morogoro Conference of the ANC in 1969. Among the many references to this in the conference's strategy and tactics document – I refer to but one – the aim of the struggle is, and I quote: "... the complete political and economic emancipation of our people and the constitution of a society which accords with the basic provisions of our programme, the Freedom Charter".

So this was long, long ago. The EFF must take note because this was long before this party recently surfaced to claim the economic space solely for itself when it was ANC members, under the most brutal conditions of apartheid and at huge personal and collective cost, who waged the struggle for economic freedom. [Applause.]

The struggle for economic freedom is an endemic part of the national liberation struggle, and they well know this because they come from the ANC - almost all of them. [Laughter.] Now, it is very hard to argue that the ANC's emphasis over the next five years on economic freedom, on economic restructuring, on social and economic transformation is simply because of the EFF. You weren't there in 1955; you certainly weren't even there in 1969. [Laughter.] So this goes a long way back. Yes, yes, the world has changed dramatically since the ANC's 1969 conference, but the need for economic liberation has not changed 20 years into our democracy. In fact, it has become even more urgent.

We have, of course, made significant progress since 1994, but we still have a long way to go. And the way to go, as the ANC and government have made clear, is into a second, more radical phase of our transition to a national democratic society.

The President, in his recent inaugural address, no less, made it very clear when he said, and I quote: "This second phase will involve the implementation of radical socioeconomic transformation policies and programmes over the next five years." "Economic transformation", I quote him as saying, "will take centre stage during the new term of government as we put the economy on an inclusive growth path." He repeated this, of course, last night in his STATE OF THE NATION ADDRESS address.

As has been made clear, this second phase cannot be mechanically separated from the first, just as you cannot mechanically separate economic and political aspects of the national democratic struggle. It is that emphasis on the economy that is now the crucial aspect of the next five years and more. And the progress that has been made over the past 20 years obviously provides the basis for this.

By "radical phase of the transition" we are referring to more directly and systematically addressing the structural constraints of the economy and more decisively tackling the challenges of poverty, unemployment and inequality in our society. By "radical" we mean addressing the roots of our problem. And by "radical" we mean, too, decisive action to achieve our political and economic goals. So, with the new radical phase, we are speaking both of content and, crucially, of action. We are speaking of a new determination to get things done – faster, more efficiently, more effectively.

An important part of the structural constraint we suffer is the way in which our economy is integrated into the global economy as a supplier of natural resources and also our overdependence on the mining and finance sectors, as well as the inadequate development of our manufacturing sector. These constraints trap our economy in a low-growth, low-investment, high-inequality and high-unemployment cycle. Overcoming the structural problems and binding constraints requires structural solutions to transform the trajectory of economic growth, the further industrialisation of the South African economy and the acceleration of social development. Over time, we will have to break out of this structural constraint - and various aspects of the programme of economic restructuring will contribute to this. The focus on industrialisation, needless to say, will be a key part of this. So, too, will the more rapid and systematic implementation of the national infrastructure plan.

The focus, until recently, has been largely on growth. Now it is going to be on transformation, but transformation that will be the source of growth; that will shape the kind of growth we have and who benefits from it - not simply established capital, but, crucially, emerging black capital.

As the ANC's Mangaung resolution points out, the changes will not emerge spontaneously from the free hand of the market. The state has to play a leading and decisive role to ensure this. It has to win over the broadest cross section of society to play an effective role in this and also crowd in private-sector investment. This means that we have to build our capacity to be a far more effective, democratic and developmental state. Building the capacity of, and for, a progressive state is a crucial aspect of driving the second phase of our transition.

This means, too, the effective deployment of state-owned enterprises and development finance institutions, which need to complement the state in promoting inclusive economic growth. All of this is not to say that the crucial role of the private sector is not recognised. On the contrary, the President made it clear last night the efforts being made, and to be made, to win the confidence and support of the private sector for the second phase of our transition.

The National Democratic Revolution, complemented by the New Growth Path and the Industrial Policy Action Plan, provides us, as with the ANC election manifesto, with the framework for the second phase of the transition.

Now, we heard today from the Deputy Speaker of Parliament that Mr Maimane is the new Leader of the Opposition. I wonder if the hon Malema recognises the hon Maimane as his leader. [Laughter.] The brand-new Leader of the Opposition, the pin-up boy of the suburbs, delivering his maiden speech, said the President had disappointed him. He said ...

The CHAIRPERSON OF THE NCOP: Hon member! Hon Carrim, did you refer to a member of this House as a "boy"?

Mr Y I CARRIM: Chair, I meant it in the figurative sense of ... [Interjections.] But if it is unacceptable, I withdraw it.

The CHAIRPERSON OF THE NCOP: It is unacceptable. Withdraw it, sir.

Mr Y I CARRIM: ... but you get the substance of what I am saying. [Laughter.] Forget the words.

He had the temerity to say that the President has disappointed him. [Interjections.]

The CHAIRPERSON OF THE NCOP: There is a point of order, sir.

Mr Y I CARRIM: I withdraw, before you even ask. I withdraw. [Laughter.] [Applause.]

The CHAIRPERSON OF THE NCOP: Order! He has withdrawn.

Mr M WATERS: I didn't know I was that powerful!

Mr Y I CARRIM: He said he was hoping for bold new ideas. But what did the hon Maimane offer? The same old lamentations, the same old suburban whining, the same well-coached culture of pessimism - a new Leader of the DA with nothing new to say. Wow! [Applause.] Wow! What a not-new start.

Now we have the hon Malema beginning his maiden speech by speaking on behalf of the indebted in South Africa. Of course, he carefully forgot to speak on behalf of his debt to the SA Revenue Service. [Laughter.] [Applause.] On Nelson Mandela Day, I suggest, my comrade colleague, you clean up your own indebtedness ... [Laughter.] ... rather than exercise your mediocre carpentry skills on school building.

Let me go on to say, friends, that the exploitation of minerals is crucial to our developmental impact and especially to job creation across the economy. Mining should catalyse – since Mr Malema is so concerned about this – broader industrialisation through the realisation of all the potential backward and forward linkages, including a much greater degree of beneficiation.

South Africa's competitive advantage is our abundant mineral resources. However, for over a century, the major mining and financial interests that have dominated mining in our country have locked us into a growth path that relies heavily on exporting unbeneficiated primary resources extracted through cheap – and still today, often contract – labour. In many respects, this pattern continues. The overweening dominance of monopoly finance and mining conglomerates in our economy has had many negative impacts, including, of course, the stifling of our manufacturing sector.

With last Friday's downgrading by two international ratings agencies, the print media has been filled with articles about what business says. But if you read the articles carefully, colleagues, you will quickly realise that "business" is not a monolithic reality. For some CEOs, the overriding imperative is maximising dividends for foreign shareholders in South African mines, or in companies like Sasol. But that overriding imperative is likely to be in conflict with local manufacturing interests, for instance.

Through the Mineral and Petroleum Resources Development Act and its amendments, we have taken important steps forward to leverage our mineral resources for industrialisation, job creation and shared growth. The mining conglomerates no longer own the mineral resources. The Act rightfully declares that all the mineral resources below the ground belong to the people of South Africa as a whole ... [Applause.] ... with government acting as custodian. Private mining companies receive time-bound mining rights in exchange for fulfilling certain conditions.

Last year, amendments to the Act took us forward in more important steps by empowering government to declare certain minerals strategic and to ensure that a percentage of the output of these strategic minerals was made available for local beneficiation. That is an important step forward that will help turn around the reindustrialisation of our economy.

However, as we consolidate the second phase of the transition, we need to consider further amendments to the Act. There should not only be domestic market set-asides of strategic minerals but also domestic prices for these quotas. It makes no sense that local industry is often forced to procure iron ore, or manganese or coal, as if these inputs came all the way from Australia or Papua New Guinea.

I want to respond in further detail to what the DA leader has said. Now, in the first instance, it strikes me as utterly absurd that the Leader of the DA would say that the President is out of touch. Who is out of touch: a party that wins 62% of the electorate, or a party that wins a mere 22% of the electorate? [Applause.] And Mr Maimane cannot claim that he is a product of Bantu education - he should be able to understand the figures. Moreover, who is out of touch: the party that falls a few percentages below what we predicted we would win, or the party that said it would win 30% and won 22%? Who is out of touch? [Interjections.]

Now, he says that we are not focusing on the main point, which is job creation. But the whole speech and the whole second phase of the transition are about economic growth and job creation. That is what they are all about. [Interjections.]

Mr Maimane also shows how naive he is, because in fact he cannot ... [Inaudible.] ... this is a constitutional state.

The CHAIRPERSON OF THE NCOP: Order! What is your point of order, sir?

Mr M WATERS: The point of order, Madam Chairperson, is that members of this House are called "hon", not "Mr".

Mr Y I CARRIM: All right, "hon" indeed. Fine. [Laughter.] Mr ... uh, hon Maimane shows how naive he is. The President cannot be ... [Inaudible.]

The CHAIRPERSON OF THE NCOP: The hon Mr Maimane! The hon Mr Maimane! [Interjections.]

Mr Y I CARRIM: Needless to say, that is what you are going to say. But look at the records and look at my engagements in this Parliament. Now, here it is. Here it is. On black economic empowerment: here the hon Maimane says that we are not going far enough - as I understood what he said, if he were to make any sense at all. Yet this very party opposed the Act and this very party was riven, and so one of their leaders has fled the shores of this country. [Interjections.]

He asked about small business, yet we now have focused attention on small business by creating a full Ministry with a Deputy Minister. Now Mr ... the hon Maimane's notion of "the state" is completely out of kilter. It is outdated. It is not even consistent with his hero, President Obama. [Laughter.] If he wants to project himself as a President Obama, at least he should understand what his idol actually thinks and does in the United States. [Laughter.] [Applause.]

Now, with regard to the EFF, I want to put a question: Who is this economic freedom for? Is it for a self-serving elite, or is it for the masses of our country? [Interjections.]

With regard to the presentation, we talked about freedom. And if you look at what has happened over the past two to three weeks since the opening of Parliament, instead of representing labour overall and the social weight of the working class, or of a domestic outfit representing domestic workers in this country - servitude and oppression - it has become a fashion statement in the hands of the DA. [Laughter.] [Applause.] That is what it has become. Politics is about much more than fashion, friends.

I want to end on this note: Whatever our differences, even with Mr Malema - I mean, hon Malema - this second phase of the transition has the interests of all our people at heart. Whatever your political background, there is a role for you to play in the interests of your country. [Applause.] We invite you to find your role and play it to the fullest. This applies even more to the EFF than to the rest of us, because, on average, you are younger. The future is for the youth, and the youth is the future.

The CHAIRPERSON OF THE NCOP: Hon member, your time has expired.

Mr Y I CARRIM: So we are saying to you, play your part to the fullest. Thank you. [Applause.]

Dr W G JAMES

Mr Y I CARRIM

Dr W G JAMES: Chairperson of the National Council of Provinces, the hon Thandi Modise, and hon members, we live in a nation where too many of our people go to bed hungry. A total of 2 537 000 of the nation's children are malnourished and behind every number is a young life that is part of a real family struggling against the odds to make ends meet.

A conservative measure indicates that 18 million South Africans, close to 36%, are poor. A closer look reveals that poor South Africans are concentrated in bereft municipalities, banished to the darkness of decay and destitution.

In the Eastern Cape's Alfred Nzo District Municipality, 76,6% of the people live below the poverty line. In Sisonke, in KwaZulu-Natal, the figure is 74,7% and in Limpopo, 74% of Vhembe's people live below the poverty line. The people of South Africa can lay the blame squarely at the feet of President Jacob Zuma's government, which underinvests in poor municipalities.

President Zuma's government daily betrays the legacy of former President Nelson Mandela's quest to create a better life for all. President Zuma has given us little more than the scandal of Nkandla and instead of a better life for all the ANC government has brought widespread misery.

The ANC government promised to create 500 000 jobs per year for South Africans. This is a dream, considering that his administration has only managed 439 000 jobs over their five-year term in office.

President Zuma, the reality is that more than 1,8 million South Africans have joined the ranks of the unemployed, meaning that there are 8,1 million people who cannot find jobs or have abandoned all hope and attempts to find employment. For the unemployed there is still no light to be seen.

During this past week Standard and Poor's lowered South Africa's credit rating, while Fitch revised our growth outlook from "stable" to "negative". Clearly out of touch with a rapidly deteriorating economic climate, very little in the President's speech adequately addressed concerns raised by these rating agencies.

The President proposes radical socioeconomic transformation to save the economy, yet he merely bureaucratises the problem. Instead of announcing immediate and truly bold reforms to recalibrate and revitalise our economy, we are enjoined to hear about eight more examples of further monitoring or dialogue via another committee or task team to turn the economy around. This is tantamount and equivalent to parking job creation in the chat rooms of government.

Declining economic growth, protracted labour unrest, high wage demands and poor power capacity demand a more vigorous response than just another committee meeting. Talk shops and empty promises will not lead to the projected 5% growth the President offers.

Yesterday a great deal of lip service was paid to the implementation of the National Development Plan. However, given that the ANC has squandered every opportunity to do so in the past and instead has repeatedly propped up the state-centric Industrial Policy Action Plan and the New Growth Path, little faith can be placed in that commitment. It doesn't have much credibility.

Mr President, today your government represents a confusion of interests, a multitude of economic plans and a sheer lack of direction. Last night you indicated that R847 billion will be spent over three years on infrastructure development. There are two important truths relating to infrastructure expenditure.

Firstly, the R1,5 trillion expenditure backlog that you inherited is a direct result of the historic failure of the ANC government to invest in productive assets in the past. Secondly, the government has not delivered on its promises around infrastructure investment in the past, and we are in fact seeing a growing gap between commitments to spend and actual spending.

The government's underexpenditure on infrastructure is on average 19% of the Budget, amounting to approximately R161 billion that needs to be financed. Unfortunately, the cost of borrowing has increased due to the negative forecasts by the rating agencies and the government's plan to promote infrastructure will land up costing us more than it should.

The President fails to address the negative ratings and fails to explain how the national debt will be affected by the increased costs of borrowing. This all serves to show that the plan errs on the side of hopeless idealism and is a clear case of throwing money at a problem in the hopes that it will go away instead of holistic strategising and a coherent focused implementation. Mr President, you tried to sell us a dream and we are not buying it.

With regards to the hon Comrade Yunus Carrim, let me say that it is true that in the past the ANC waged a struggle that dealt with political freedom and economic freedom. However, the question I now ask is, whose interests does this ANC state serve? Does it serve the interests of hungry children? No. Does it serve the interests of the young? No. Does it serve the interests of the unemployed? No. Does it serve the interests of the poor? No. Does it serve the interests of organised labour? Perhaps Cosatu. Does it serve the interests of big business? There is a very cosy relationship. Does it serve the interests of small business? No. Does it serve the interests of women? No. Does it serve the interests of children? I say again, no.

Let me say that the dream of Mandela has been surrendered in an ANC today that serves only the elite. Thank you. [Applause.]

Mr B HOLOMISA

Dr W G JAMES

IsiXhosa:

Mnu B H HOLOMISA: Kuyabethwana apha, kumnandi. [Kwahlekwa.]

English:

Mr B H HOLOMISA: Chairperson, hon President, hon Deputy President and hon members ...

IsiXhosa:

... phila Nxamalala, siyakubona mhlekazi uphakamile.

English:

I wish to thank all the people who gave us the mandate to once more contribute to building a better South Africa. We will do our best to serve you.

IsiXhosa:

Eeh, DA, ningandiqali ke madoda. Niyayazi ukuba xa ndinokuzikhulula iiglavzi kuya kuba nzima. [Kwahlekwa.]

English:

To achieve meaningful socioeconomic transformation, the UDM believes that South Africans of all races should engage in a structured debate about our policy direction and priorities. This debate would discuss, in addition to other issues, the need to review the current over-reliance on population size as a major determining factor in the allocation of resources. We believe that when allocating resources, greater emphasis should be placed on the developmental needs and economic disparities of each province. This will go a long way towards addressing past imbalances and backlogs.

Given the increased role the state now plays in the economy, it is important for us to reach some form of consensus about our macroeconomic policy that will take us forward. We call for this because we are of the view that state intervention that results in higher public debt, high inflation and more inefficiency defeats the purpose of the exercise. A discussion on how best government should pursue our developmental needs and objectives through state intervention would help locate the National Development Plan in the right context. It would also ensure that steps are taken to provide the essential policy details necessary for the implementation of the NDP. The recent approval by the Cabinet of the Defence Review should also form part of this broader discussion, in line with our peacekeeping demands.

Mr President, we welcome steps government has taken to ensure sustainable mining and to improve the socioeconomic conditions of the mineworkers. However, we believe that they do not go far enough to deal decisively with mining.

The UDM calls on government to set up a commission on mining to advise, among others, on the following: firstly, the socioeconomic conditions of the workers and the surrounding communities; secondly, mineworkers' access, or lack thereof, to a provident fund worth billions of rands; thirdly, how the workers' money has been invested, especially in cases where the workers were retrenched, have retired or passed away; fourthly, the ownership of mines and mineral wealth and the allocation of mining rights, as well as who benefits from these mines; and lastly, the much talked-about beneficiation programmes.

IsiXhosa:

Eyokuba ke Nxamalala kuthiwe nguwe oza kukhokela lo mcimbi, hayi, uxakekile Mhlekazi. Le komishoni iza kukunceda, ukuba imiswe zingcali zabantu. Ithungelwe kakuhle nalapha kwisiCwangciso soPhuhliso seSizwe, ukuze uthi usiya koosomashishini nabasebenzi ube sowunazo iziphakamiso. Into yokuba kuthiwe iza kukhokelwa nguMongameli, ayizukulunga.

Lo msebenzi uhorho, asiyondlwana iyanetha le uzifaka kuyo. Ngoko ke, sicebisa, siyi-UDM ukuba kubekho loo komishoni. Ayilophando lokuba kuthiwe kuza kuvalelwa umntu, hayi, ntonje kukujonga nje ukuba ingaba obu butyebi buphilisa obani okanye kuxhamla bani kubo. [Kwahlekwa.]

Finally, to turn around local government, we believe that Minister Gordhan needs to conduct a proper skills audit to ensure that the right people are employed in those areas. We further call on Minister Gordhan to ensure that politicians are not involved in the awarding of tenders. Nxamalala, we look forward to joining you in your clean-up campaign for the environment during Nelson Mandela International Day.

IsiXhosa:

Siyacoca ke thina kwi-UDM naba batya imali, kangangokuba noPansy Tlakula ulahliwe lityala namhlanje. Bakhona nabanye abaphathiswa endiza kukuphathela bona, ndithi bayamosha aba. Enkosi Mongameli. [Kwahlekwa.] [Kwaqhwatywa.] [Kwaphela ixesha.]

Miss P T VAN DAMME

Mr B H HOLOMISA

Ms P T VAN DAMME: Chairperson of the NCOP, hon President Zuma, Deputy President Ramaphosa, Ministers, Members of Parliament and guests in the gallery, I stand here today, a 30-year-old, young, black woman. I am aware of the hard-won freedoms and sacrifices ... [Interjections.]

The CHAIRPERSON OF THE NCOP: Order, members! Please remember that maiden speeches are respected, unless the maiden speaker does controversial things. You are protected, hon member.

Ms P T VAN DAMME: ... it has taken for me to stand here today and have a voice. I am grateful for the sacrifices of women such as Lillian Ngoyi ... [Interjections.] ... Helen Joseph and Helen Suzman. It is because of them and others that I am free.

IsiXhosa:

Malibongwe igama lamakhosikazi.

English:

That being said, I cannot fully celebrate until I know all young people, like myself, are enjoying the fruits of freedom. I cannot celebrate while South Africa has the third-highest unemployment rate in the world for people between the ages of 15 and 24. I cannot celebrate while 5,4 million of my peers are unemployed. I am grateful that the hon Carrim has said that the youth is the future. What future are you offering these unemployed young people? [Applause.] It is for these young people that I stand here today and say: "No, we deserve better. We deserve more."

I think I speak on behalf of the vast majority of young people in South Africa when I ask: How long must we put up with corruption? How long must we put up with unemployment? How long must we be satisfied with titbits while we see ANC politicians living their best lives, driving expensive cars and living in R200 million mansions at the public's expense? [Applause.] [Interjections.]

IsiXhosa:

Sanele! [Enough is enough.]

English:

In his state of the nation address to this House yesterday, President Zuma spoke briefly about his plans for the youth. I must say he left me unsatisfied and a little disappointed.

The DA has, in the past, been accused of criticising for the sake of criticising. Today, I will critique President Zuma's plans for our youth in the spirit of constructive criticism. I do not want to see our President fail, because his failure will mean that the lives of our young people do not improve. [Applause.]

In his speech yesterday, the President committed to investing in education and skills development for, among others, our teachers. I did not hear anything concrete in this. Mr President, in order to ensure that our children receive the best possible educational outcomes, we need, at the very least, 15 000 more teachers trained per year.

We cannot afford to have our learners be among the worst in the world anymore. Also, to make sure that our children have the resources with which to produce these excellent outcomes, please, Mr President, provide every child with a textbook in every subject, delivered on time. In addition, please increase the National Student Financial Aid Scheme, NSFAS, budget to R16 billion so that no student is denied further education because they cannot afford it.

In his speech, the President also committed to expanding the number of internship positions in the public sector. He did not give an indication of timelines or of the number of positions. We need at least a million internships to give work experience to young job seekers so that they can enter the job market prepared. We need more young people involved in the economy. Stop making it so difficult for young people to enter the economy, with unnecessary red tape, endless forms and all sorts of blockages. Cut red tape and provide greater support and training for young entrepreneurs.

Finally, and I cannot stress this enough, stop corruption and fire corrupt officials. Corruption steals jobs and takes food out of our mouths. This must come to an end.

Mr President, I trust you will take these suggestions whence they come: a good place. A place where I – and the DA – want to see South Africa become the country we all want it to be. South Africa's youth deserve better and will get better. In the next five years, the DA will do its very best to make sure that this happens. [Interjections.] [Applause.]

The MINISTER OF HUMAN SETTLEMENTS

Ms P T VAN DAMME

The MINISTER OF HUMAN SETTLEMENTS: Madam Chairperson of the NCOP, Mr President, Mr Deputy President, hon members of the NCOP and of the National Assembly, once again we are treated to doomsday prophecies by the opposition. It is almost as if there is a formula that they have laid out for the President to follow and if he deviates from it, he does so at his own peril.

So they say he should have said something about this; he should have said something about that; he didn't say enough about this; he should have done this; he should have done that; he should have referred to the National Development Plan, or he should have done that! What they forget is that we, the ANC, came here on the mandate of 62% of the people of this country. [Applause.] When the President speaks, he speaks on behalf of 62% of the voters, and that indicates what the policies of this government will be, going forward. That is what he came here to say. [Interjections.]

If there was anything the opposition wanted to add, they could have done so. They have always been given the opportunity to do so, but their vacuousness is echoing through the halls of this assembly today – all emptiness, signifying nothing.

Lest we forget, this is where we come from: The DA argued that they would become the government of Gauteng. They failed. There is Mmusi Maimane, the premier-elect of Gauteng, sitting there ... [Interjections.] ... playing ... hon Mmusi Maimane from Soweto, sitting there, his dreams ... [Interjections.] Shut up! [Interjections.]

Mr M WATERS: Madam Chairperson, I rise on a point of order: I ask you to rule whether it is parliamentary for the hon Minister to tell another member to shut up.

The MINISTER OF HUMAN SETTLEMENTS: Chair, I withdraw the remark.

The CHAIRPERSON OF THE NCOP: The hon Minister has withdrawn the remark.

The MINISTER OF HUMAN SETTLEMENTS: They promised that they would marginally improve their national standing to 30%. It was a miserable 22%... [Interjections.]

The CHAIRPERSON OF THE NCOP: Hon Minister, you were asked to withdraw, and you said that you withdrew.

The MINISTER OF HUMAN SETTLEMENTS: Chair, I withdrew even before I was asked to do so.

The CHAIRPERSON OF THE NCOP: Are you satisfied, hon member? [Interjections.] Thank you. Please continue, hon Minister.

The MINISTER OF HUMAN SETTLEMENTS: He is sitting here, playing second fiddle in some province where previously there sat somebody else who has now been sent into exile. [Interjections.] Now that Madam has found another hired native in the form of hon Maimane – who shall forever be grateful to the ANC ... [Interjections.]

Mr M WATERS: Madam Chairperson, I rise on a point of order.

The MINISTER OF HUMAN SETTLEMENTS: ...for leading the struggle that today...

The CHAIRPERSON OF THE NCOP: What is your point of order, hon member?

The MINISTER OF HUMAN SETTLEMENTS: ...has a black man being seen as a much sought-after commodity.

The CHAIRPERSON OF THE NCOP: Hon Minister, please hold your horses.

Mr M WATERS: Madam Chairperson, I rise on a point of order: I refer to Rule 14P of the Joint Rules, and I ask you to rule on whether the phrase "a hired native" would be deemed offensive and unbecoming language in this House.

The MINISTER OF HUMAN SETTLEMENTS: Chairperson ...

The CHAIRPERSON OF THE NCOP: Hon member, I will be advised on your point and make a ruling. [Interjections.]

The MINISTER OF HUMAN SETTLEMENTS: Chairperson, I am a native of this country and I am very proud of it. [Interjections.]

The CHAIRPERSON OF THE NCOP: Sir, I said I will be advised on this matter and make a ruling. [Interjections.]

Ms D VAN DER WALT: So you don't know!

The CHAIRPERSON OF THE NCOP: Yes, I don't know, ma'am. Please stop back-chatting the Chair. Please continue, hon Minister.

The MINISTER OF HUMAN SETTLEMENTS: He will forever be grateful to the ANC for having fought the struggle so that, today, a black man is such a sought-after commodity that he is hand-picked to do the bidding of somebody else. [Applause.] Soon, he too will disappear.

Mr N S MATIASE: Madam Chairperson, I rise on a point of order: It is unparliamentary and unAfrican to call a black person "a commodity". If the ANC thinks that black people are commodities, then that is a shame. I request that you ask the hon Minister to withdraw.

The MINISTER OF HUMAN SETTLEMENTS: Madam Chairperson, I stick to what I said. That is what the DA was doing: looking for a black commodity to run their election. They found one. [Interjections.] Chairperson, I would like to proceed.

The CHAIRPERSON OF THE NCOP: Order! I will rule tomorrow on whether an hon member can be referred to as a commodity or not. You may proceed, hon Minister. [Interjections.] Order, hon members! Calm down!

The MINISTER OF HUMAN SETTLEMENTS: Hon Maimane, I waited for your speech in anticipation. Sadly, we have heard that speech being given here before, and there is absolutely nothing new in it. [Interjections.] The only thing I learnt from that speech is that you come from Soweto, a revolutionary place. I wonder how you can come from that place and turn out like this. [Laughter.] [Applause.] Hon Chair, I took a vow. I'm packing my bags and going to Ngcobo. I cannot be associated with this! [Laughter.]

We heard that speech from the exiled Lindiwe, with a few... [Interjections.]

The CHAIRPERSON OF THE NCOP: Order, hon members! Order! [Interjections.]

The MINISTER OF HUMAN SETTLEMENTS: I will go when I choose! There were only a few tweaks here and there, and we sit here and you tell us about a DA government. Where the DA governs, there is more misery for black people. [Interjections.] Where the DA governs, there is the clearest, starkest inequality between the races. Where the DA governs, winter is the darkest period for black people, as they are invariably knee-deep in flood waters, drenched and frozen in their shacks.

Tomorrow, you should go to Phillipi and Lwandle and see the conditions under which those people live. [Interjections.] See the living conditions of our people where the DA governs. Ask them how long they have been on the DA's housing waiting list. What hypocrisy! [Interjections.]

Mr I M OLLIS: Hon Chairperson …

The CHAIRPERSON OF THE NCOP: Yes, hon member, do you have a point of order?

Mr I M OLLIS: Yes, hon Chairperson. Will the Minister be willing to take a question about the SA National Roads Agency throwing people out in winter? [Interjections.]

The CHAIRPERSON OF THE NCOP: Hon Minister, are you willing to take a question? [Interjections.]

Hon MEMBERS: Take the question!

The CHAIRPERSON OF THE NCOP: Order! The Minister has declined to take the question, sir. [Interjections.] She has indicated that she declines. Please take your seat. Proceed, Minister.

The MINISTER OF HUMAN SETTLEMENTS: What hypocrisy to say that some of the money we have spent could have been spent better on a number of other issues. Maybe, maybe not. What you forget is that in this province, governed by the DA, R30 billion was spent on consultants - no doubt cronies of the DA government. In this province there is a scam readily available, day in, day out. Right now, we are sitting with a scam that has been covered up with the complicity of the media. Millions were spent by the City of Cape Town on a scam called the "World Design Capital". And what has happened here is that the judges were paid to judge in favour of the City of Cape Town. [Interjections.] A big scam! Maybe hon Maimane can explain to taxpayers in Cape Town and elsewhere why the DA bought this title, how much they paid for it and how much it is still costing us and what could have been done with that money ...

Mr I M OLLIS: Chairperson, I rise on a point of order.

The MINISTER OF HUMAN SETTLEMENTS: ... in the years to come.

The CHAIRPERSON OF THE NCOP: Hon Minister, there is a point of order.

Mr I M OLLIS: Madam Chairperson, I rise on a point of order. In terms of Rule 14J I would submit that the Minister has cast a reflection on judges and the honour of judges by saying that they would accept money to alter a judgment. I would ask you to rule that that is unparliamentary.

Adv T M MASUTHA: Madam Chairperson, may I address you on that point of order?

The CHAIRPERSON OF THE NCOP: Order! What is it, hon Masutha?

Adv T M MASUTHA: May I address you on that point, hon Chair? There has been no reference to a specific judge and therefore I do not know in what context this point of order is being raised. [Interjections.]

The CHAIRPERSON OF THE NCOP: Order! Hon members, calm down! The Minister referred to a scam and people being paid off. [Interjections.] I will look at the record; I did not hear the word "judges". [Interjections.] I will come back and rule on this matter once I have ... [Interjections.]

The DEPUTY MINISTER OF PUBLIC WORKS: Hon Chairperson, I rise on a point of order.

The CHAIRPERSON OF THE NCOP: I will come back and rule on this matter.

The DEPUTY MINISTER OF PUBLIC WORKS: Hon Chairperson, I rise on a point of order: The reference was to a panel of international judges awarding an international design capital award to a city for a particular year. The comment was not at all a reference to the South African judiciary. So, the particular clause that the hon member quoted is not relevant to this matter at all. [Interjections.]

The CHAIRPERSON OF THE NCOP: Order! Hon member, that may be, but I will still look at the record and come back to the House. May we proceed, please?

The MINISTER OF HUMAN SETTLEMENTS: I would like the hon member to explain to this House how much was paid to the judges of this particular World Design Capital endeavour; how much of that money could have been used elsewhere and how this is defined outside the context of corruption and wasteful expenditure in the City of Cape Town. [Interjections.] This, in a province where, over the last five years, housing production has dropped by 30%! What a shame!

Hon Malema, welcome to this House, where manners is a very important part of our conduct ... [Interjections.]

The CHAIRPERSON OF THE NCOP: Order!

The MINISTER OF HUMAN SETTLEMENTS: ... where your tongue is governed by the Rules of Parliament, my dear. [Interjections.] It will be a tough place for you, but we welcome you here. The reason you do not remember what the President's speech was about was because it clearly flew far over your head ... [Interjections.] ... and your ability to grasp what he was saying. [Applause.] Hang in there! In a few years you will remember what the President said; you will comprehend what the President said.

Secondly, you make an allegation about the Marikana incident. You accuse this government of improper action in that matter, while in the meantime the EFF has one of its members serving on a commission as a representative of the miners involved in this particular tragedy. [Interjections.] Yes, perhaps it might help us understand how radical that person is if he took the money that he is being paid by the state for serving on that commission and gave it to the miners. [Applause.]

Hon Buthelezi, my respect for you prohibits me from responding to you, but you know that you have crossed the line. You said what you said many times, and you do it all the time. For my sake, personally, please stop embarrassing me and please stop embarrassing yourself. I love you too much for that. [Interjections.]

The President has a plan. He laid out the elements of that plan. Explaining the details of the plan is the responsibility of each Minister in the upcoming budget debates. So, if there are not enough cows out there or whatever it is that you are complaining about, hon Minister Zokwana will fill in the gaps and tell you about cow disease and what he is doing about it. If there is anything else that you would like to know, attend the Budget Vote debates.

When the President laid out the plan that the ruling party and government had been seized with for the last two weeks while some of you were tanning in the sun – all of you here look very sun-tanned – and some of you, in red overalls over there, were probably working on Malema's farm, we were very busy. [Laughter.] We were very busy. The depth and the detail ... [Interjections.]

Mr N F SHIVAMBU: On a point of order, Chair!

The CHAIRPERSON OF THE NCOP: Yes, what is your point of order, hon Shivambu?

Mr N F SHIVAMBU: Chair, look, we don't agree with this "honourable", "honourable" thing, but the person who is speaking now said that we were working on Malema's farm. She must consistently say "honourable" because all of us are forced to say "honourable" here. So the hon member who is speaking must also consistently refer to the commander in chief of the EFF as hon Malema. [Laughter.]

The CHAIRPERSON OF THE NCOP: Order! I am sure the hon Minister has heard the hon member reminding us all to "be honourable" in the House.

The MINISTER OF HUMAN SETTLEMENTS: Yes, Chair, and also the affirmation that the hon members were on hon Malema's farm [Laughter.]

While you were on the farm, we were very busy. The depth and detail of the plan will certainly have been above the average intellectual capacity we have on my left. That is your problem. We are moving South Africa forward. Watch as we embark on radical changes now that we have consolidated the power of the state that we set up in the first administration of the previous five years to ensure that our economy is on solid ground.

Coming out of this election, what seems to be missing from our analysis is the fact that, despite all the whining and whinging and all the scaremongering that has been going on for years, we got 62% of the vote. [Interjections.] In a democratic state, that is a landslide victory by any measure. The ANC got 40% above the second-highest vote catcher. Our people have shown their confidence in us once again. We worked very hard for it and we are grateful that our people have faith in us and that it is solid. It is so solid that Mamphela Ramphele was reduced from being a much sought-after damsel to being a damsel in distress, rejected even by her own party! [Interjections.] Now she is out in the wilderness.

Cope is so decimated that it has left poor hon Lekota – the once puffed-up Terror – shrivelled! Absolutely shrivelled! [Laughter.] And what about hon Holomisa, running around, begging the miners in Marikana, "Hey, do you remember me?" [Laughter.]

Mnu B H HOLOMISA: Uyafuna mos ndiphendule; ndingakuphendula uba uyafuna. [Do you want me to respond? I really can respond if you want me to.]

The MINISTER OF HUMAN SETTELEMENTS: May I continue, Chairperson?

The CHAIRPERSON OF THE NCOP: Hon Holomisa, whatever it is that you are whispering is unparliamentary because it cannot be heard. [Laughter.] Please proceed, hon Minister.

The MINISTER OF HUMAN SETTELEMENTS: He said, "Hey, I am that dictator who freed you from Matanzima; please vote for me!" [Laughter.] Well, my dearest brother, it paid off; that is why we have you here. I was very pleased to listen to what you said because you brought sense back with you. Thank you for coming back.

The opposition's general election strategy was based on innuendo, malignant attacks, rumour mongering and outright slander against the people's organisation and its president. It is the same malignant innuendo that is being repeated here by hon Maimane and hon Malema. Our people have matured over time and their answer to these nefarious designs was to say that, together with the ANC, we will move South Africa forward. [Applause.]

Our people's hope in us is not misplaced. Our people's vital wishes and deep desires sit at the heart of the ANC's long tradition of resistance. Our people know that year in and year out we built roads, opened new clinics and built new hospitals. New schools are being opened in the Eastern Cape - one every week. The President indicated here that by August 2014 there will be proper furniture in those schools, procured through proper procurement processes. [Interjections.] Eat your heart out, Malema.

Our people know that year after year we give them houses. Our people know that we connect new houses to electricity. Our people know we support families of vulnerable people through a basket of social assistance that this government's grant system has created to take them out of poverty; that we have rolled out antiretroviral therapy – and the list goes on.

We dedicated a great deal of time before this election to telling the good story of what this government has done. As the President indicated yesterday, we spent a great deal of time on the ground, listening to the people to find out what had been achieved and what had not been achieved. What he heard was: Mr President, please deal with the economy so that we can secure jobs for our youth; so that we can prosper. Mr President, please deal with local government and its shortcomings. That is exactly what he has done.

Programmes have been put in place. These are not just empirical but are based on practical experience of matters at the core of the second phase of the transformation of our democracy to fulfil the promise of a better life for our people. [Interjections.] No, I haven't.

As we sit here, Mr President, the people of Lwandle are drowning in water, shivering, shunned by this province. [Interjections.] The Minister of Transport, the Deputy Minister and I had to come here and rescue them from the plight that they were in. [Interjections.] Until we got here, nobody cared about them, because they are black. [Interjections.] What is more, they were even shunned by the communities that we tried to place them in, based on the deeply entrenched racial divide in this province. [Interjections.]

Hon Maimane, the President has indicated that he will intervene and help with the billing system of the City of Johannesburg. We will also intervene and help the Western Cape with its housing delivery and sanitation, so that we stop our people running around with buckets of unseemly matter and emptying them at the airport. [Interjections.] We will do that to make sure that they are not reduced to that.

We will intervene to help the province eradicate apartheid spatial planning because, quite clearly, it is struggling with that. Please convey this message to the province on our behalf, hon Maimane.

I must say that one of the very good announcements made by the President unfortunately seems to have passed over the heads of most people. It is the fact that the President has indicated that we are intervening in mining towns to revitalise them, to make sure that we do not have conditions like Marikana ever again ... [Interjections.] ... that our people who work in the mines are housed in decent conditions and that their dignity is restored. Hon Maimane, join us in this quest to create a better country for all our people.

The President dealt in detail with the problems of service delivery at local government level – that layer of government that is closest to our people, where inexperience, a lack of skills, political interference and corrupt practices have been identified in our analysis. If we hope to improve the economy, we know we have to build the necessary capacity in the state to do so. We had the Local Government: Municipal Finance Management Act, but that was not enough. The NDP pointed it out to us, and we energetically set about providing the framework that is very clearly spelt out in the Public Administration Management Bill. It is now possible to take skills and make sure we can transfer them to where they are needed most, which is largely in local government. We will have uniform standards set throughout all three spheres of government, in line with the Constitution. Importantly, to help reduce the incidence of corruption, we banned all public servants from doing business with the state. [Interjections.]

I must add at this point, Mr President, that I was heartened to read the comments to your speech of Mr Cas Coovadia, the chief executive officer of Business Unity SA, Busa. He said:

The concentration on energy was very important, and the focus on local government was also very positive. There is certainly room for the private sector and government to work on that because the private sector has capacity it can second … to bring to bear on the capacity of local government.

Let all South Africans with a conscience come forward and rally behind our effort. That is what we can do. This is what we are asking you. What can you do to help? What can you do for this country?

We have the skills. We have it in abundance. When that happens across all sectors of our society, when people come forward to say, I can help, this is what I can do for my country; when we have achieved a national identity and a national consciousness that demands us to give willingly so that we together as South Africans can move South Africa forward – because, after all, South Africa belongs to all of us who live within its borders – then we will have arrived at the place for which we fought for so long. I thank you. [Applause.]

Business of the House suspended at 16:58.

The MINISTER OF HUMAN SETTLEMENTS

Business of the House resumed at 17.20.

The DEPUTY SPEAKER: Hon members, hon President, hon Deputy President, we shall now proceed to the next speaker. I see that is the hon Kubayi. [Applause.]

Mrs M T KUBAYI: Hon Deputy Speaker, His Excellency the President of the Republic, President Zuma, Deputy President, hon members, ladies and gentlemen, ri perile [good evening].

I just want to start with something, hon Lindiwe Sisulu: I come from Soweto. I was born and raised in Soweto and I will never abandon Soweto. It is my home. Young people of Soweto are very conscious. They understand that consciousness goes with patriotism and an understanding of what goes on in terms of the organisation and where the country is going. I just want to say something to hon van Damme...

Setswana:

... ba re lepotlapotla le ja podi, modikologa o ja kgomo ya tona. O seka wa itlhaganela mogaetsho. Ithute lefelo leno, goseng jalo o tlile go wa.

O nne le motsotso le motlotlegi Mazibuko le nwe tee, pele a ya moseja.

English:

She will teach you a lot about what made her go into exile.

English:

One thing I want to highlight - and it is a legacy of Mme Mazibuko when she left - is the DA's contradictions on policy. Just today, two of them contradicted each other. [Interjections.] Hon James stood up here contradicting his party leader on the podium today. That is the legacy because they have been doing it even over the past five years. One of them says it is not the responsibility of government to create jobs. The other one says, President, you must create jobs. [Interjections.] So, that is part of the problem they have. I think they have also continued with the howling. They howl more than anyone else.

Another thing I want to say is that when they say you are out of touch with the people, Mr President, it is because ...

IsiZulu:

... uma ukhankasa ungena enzindlini nsuku zonke, bona abayi kodwa bathumela abantu abamnyama. Uwubheke umkankaso wabo, kuhamba abantu abamnyama kodwa uma kufikwa lapha eNdlini bamhlophe qhwa.

English:

So, the contradiction is what you find on the ground when there is campaigning and what you find in the House. These are two different things. That is why there is the issue of saying …

IsiZulu:

... abayazi le nto ekhulunywa ngabantu. Ngisho le wena oyizwe ngenkathi uhambela umuzi ngomuzi. Ngakho-ke siyabazwisisa uma bethi ...

English:

... you are out of touch. In fact, they are the ones who are out of touch because they were not there when we were going door to door.

I want to say to hon members that today the debate takes place after the 38th commemoration of June 16, which is now known as Youth Day. Young people took to the streets of Soweto to protest against the inferior education that was being forced onto them by the apartheid regime. It was and it is still unfortunate that the regime did not want to see the peaceful march proceed. Despite various leaders at the time taking to the platform to emphasise that the march was peaceful, the police released live ammunition and murdered small children who were unarmed and harmless.

As president O R Tambo said during the 10th anniversary of the Soweto uprising … I think it will help you to listen because you are going to learn the history of Soweto because a child of Soweto is standing up here and speaking.

As president O R Tambo said during the 10th anniversary of the Soweto uprising, and I quote:

On this truly historic occasion, the nation will pay fitting tribute to the young heroes and martyrs, including eight-year-olds, who fell in that titanic battle against the forces of apartheid repression.

Sepedi:

Re tšwela pele go leboga bagale ba rena ka go re etela pele balwe. Mamohla baswa ba Soweto, Gugulethu le Khayelitsha, ba kgona go ema ba be le bokamoso bjo bokaone.

English:

These were young people who were committed to making a contribution to the liberation of this country. They refused to watch from the side line, choosing to be part of the solution instead. They were prepared to raise their voices against their challenges. This is the culture we must inculcate in the youth. We need to see young people being part of finding solutions to the challenges our country is facing. There is a need to develop young people who are patriotic about their country and are proud to be South Africans and Africans.

The time has come for young people to be part of the solution and not to wait for delivery to come to them. However, in order to realise the idea of economic emancipation, our youth needs to have a change of focus and be more patriotic. They must also know that they have to be part of the solution and do something. They must seize the opportunities that exist.

Patriotism goes together with consciousness. An unconscientised young person is dangerous to our society - it has been said that an unconscientised person is like an untrained soldier who has a loaded barrel because he can kill people without having been trained.

Indeed, South Africa is a better place for young people than in 1994 and, working together with the youth of South Africa under the ANC-led government, we shall build a better place for all to live in. Since the dawn of democracy in 1994, far-reaching opportunities have been created for the youth of our country through the transformation agenda of the ANC-led government.

A number of institutions were established to champion and guard the interests of young people, among others the National Youth Development Agency, NYDA. Some of the interventions include support to youth entrepreneurship initiatives and co-operatives through its business grant programme. A strong nonfinancial support programme involving a suite of services are a requirement for awarding grants to ensure viability and preparedness of enterprises or co-operatives to ensure sustainability.

Among other interventions, the NYDA has entered into a formal agreement with the Small Enterprise Finance Agency and Industrial Development Corporation, as well as with other development finance institutions, DFIs, to provide comprehensive support to youth enterprises. [Interjections.] It is because you believe in black economic empowerment, which creates jobs, that you are saying that.

The concerted effort of the ANC-led government to advance youth development has been further evidenced by the signing of the Youth Accord in April 2013. By the way, a youth leader of the DA was part of the signing of this Accord. I don't know why you are screaming. The co-operation of various stakeholders in the signing of the Youth Accord is indeed a clear sign that South Africa agrees to move forward with the ANC-led government. The Youth Accord details the obligation of government, labour, youth formations and the private sector in addressing the challenges facing our youth.

Former ANC President O R Tambo summarised the importance of the youth in any country when he said, and I quote: "A nation that does not take care of its youth has no future and does not deserve one."

The National Development Plan identifies youth unemployment as the single greatest risk to social stability in South Africa, hence the urgency and commitment of the ANC, both in its election manifesto and the President's state of the nation address, in acknowledging that and providing a clear programme of action to address the challenges. The problem is that you scream and then you don't listen properly. You were sleeping yesterday; you didn't hear the President.

Mr President, under your leadership South Africa is indeed moving forward and, as highlighted in your speech last night, a number of interventions are intended to address the challenges facing the youth of our country. However, these government programmes and interventions for our youth require our young people to focus, be responsible and be willing to build a country and a future for themselves.

The 1976 youth delivered on the narrative of its generation. It is therefore an obligation of this generation to take these opportunities and move South Africa forward.

It is in understanding the complex challenges facing both our urban and rural youth that President Zuma detailed the following interventions to address the challenges of our youth: the Youth Accord; Employment Tax Incentive and Youth Service programmes. However, the nature of these interventions requires our youth to work with the ANC-led government in moving South Africa forward and to have the consciousness and the sense of patriotism to continue making South Africa a much better place than it was in 1994.

The success of the youth incentive scheme in the short period of its implementation has been nothing short of remarkable and it has created more than 133 000 job opportunities for our youth, as highlighted by the President yesterday. Furthermore, the increased participation of the private sector in the youth incentive scheme will further ensure greater employment opportunities for our youth. We therefore urge those sectors that have not yet registered with the programme to do so and assist in building a better future for our young people in this country.

It is important, even more so because we have a successful example in the car manufacturing industry, where both government incentives and government commitment in attracting direct foreign investment have led to the sustainability of jobs and an increase in the flow of investment into the country. The ANC-led government, together with patriotic South Africans, is committed to making South Africa a better place than it was in 1994.

Mr President, we have a good story to tell and that story is not narrated through, and I quote, "a belief that we can" but through the practical implementation of the ANC manifesto.

With the realisation that we have an increased need to skill young people, the Sector Education Training Authorities, in collaboration with the public further education and training colleges, remains a beacon of hope for many of our youth who cannot access university but are required to provide practical skills to the ever-increasing demands of the renewable energy sector, the information and communications technology sector and the water sector.

Indeed, South Africa is a better place than it was before, with programmes like the Expanded Public Works Programme, which is intended to provide 6 million job opportunities by 2017. The EPWP creates work opportunities in four sectors, namely the infrastructure, non-state, environment, and culture and social sectors, through increasing the labour intensity of government-funded infrastructure projects under the infrastructure sector; creating work opportunities through the Non-Profit Organisation and Community Work Programme in the the non-state sector, creating work opportunities in public environment and cultural programmes in the environment and culture sectors, and creating work opportunities in public social programmes in the social sector.

Moving forward, the implementation of the Youth Set-asides, as per the Youth Accord, will be important. The commitment is that the solar water heater installation programme should be made a youth-focused sector. These are clear indications of a direct intervention by the ANC-led government. Other commitments are that 60% of the labour intake in new projects for the Green Economy Projects will be young people; 60% of the labour intake in the infrastructure programme will be young people; and 80% of new employment in the business service sector will be young people.

The young people of South Africa can be sure that they will participate and benefit in the radical transformation of our economy - but that will not be done through destroying what we have built over the last 20 years.

In conclusion, hon Deputy Speaker, allow me to quote one of the great sons of the African soil, Kwame Nkrumah:

Countrymen, the task ahead is great indeed, and heavy is the responsibility; and yet it is a noble and glorious challenge - a challenge which calls for the courage to dream, the courage to believe, the courage to dare, the courage to do, the courage to envision, the courage to fight, the courage to work, the courage to achieve - to achieve the highest excellencies and the fullest greatness of man. Dare we ask for more in life?

I just want to say something. One of the things that is very important is … [Interjections.] No, don't worry, you will get your choir conductor so that we can conduct you when you sing. But this is a platform where we debate ideological issues. Unfortunately, because you do not have an ideological origin, you are left with no option but to sing. [Interjections]

When we stand here it is important that we understand that one of the things that we have as an obligation is to be responsible and to give direction to South Africans. We are here to provide leadership. We are here to lead society, whether you are in the opposition or not. It is our responsibility. We have just come from an election. The ANC government was given a whole 62% of the votes and you want to say we are not in government! We are in government. We have been given a mandate. It has been renewed. We are here to lead for five more years. So, deal with it. [Applause.]

Mrs N W A MICHAEL

Ms M T KUBAYI

The DEPUTY SPEAKER: Order! Hon members on my left, you are not being very helpful to my induction. You are screaming and so we can't even hear if you were possibly making any useful interjections. Stop screaming, please, and give the speakers a chance.

Mrs N W A MICHAEL: Deputy Speaker, Mr President, Deputy President and fellow members, today I address you in a fully lit National Assembly while millions of South Africans are visited by load shedding and darkness in these cold winter months. Is it not ironic that at the very moment the President delivered his state of the nation address, Eskom announced Phase 1 of rolling blackouts. The question that all South Africans would like an answer to is quite simple: Will the lights be going off at Nkandla too?

This is not where South Africans expected to be in June 2014; in fact, it is quite the contrary. Following promises of increased capacity to the national electricity grid through the completion of major power projects such as Medupi and Khusile, we find ourselves often in the dark and continuously lied to regarding our country's electricity supply.

In his address last night, in the midst of these rolling blackouts, the President failed to provide any meaningful direction on how this administration will tackle the problem right now or indeed accelerate the delivery of the Medupi and Kusile power plants. The Medupi project, which was meant to be operational by late 2012, has undergone several delays, with the latest extension now scheduled for completion in early 2015. The cost to South Africans has been astronomical. Medupi's initial R90 billion price tag roughly triples the price tag per megawatt of any other coal-fired power stations across the world. It now looks set to come in at roughly R150 billion.

The Medupi Power Station has become one of the most significant failures of Jacob Zuma's administration. The scandals that have shrouded this project are unacceptable and in many cases completely unacceptable. When Chancellor House, the ANC's investment vehicle, paid R6 million for its stake in Hitachi Power Africa in 2009, it seemed a questionable investment.

Mr B A RADEBE: Hon Deputy Speaker, on a point of order: The speaker on the podium referred to Jacob Zuma, and we have a democratically elected honourable President in this House. I think he must be given the due respect he deserves. Can you rule on that, please? Thank you.

The DEPUTY SPEAKER: Hon member, that is standard practice.

Mrs N W A MICHAEL: You are quite right, Mr Speaker, it is hon President Jacob Zuma's administration. When Chancellor House, the ANC's investment vehicle, paid R6 million for its stake in Hitachi Power Africa in 2009, it seemed a questionable investment. At the time, Hitachi Power Africa was a newly formed entity and had no contracts, no clients and no track record. But curiously, a while later, it was awarded a R38 billion contract for the installation of boilers at Medupi.

In February, Chancellor House sold its stake in Hitachi for an undisclosed amount. This is corruption, plain and simple. The ANC government awarded itself a massive contract that filled its re-election coffers. Meanwhile, Hitachi's work has been a considerable source of the delays at Medupi and therefore a significant contributor to our present power crisis. This is unacceptable. The question needs to be asked: Where is the power, hon President?

Eskom's incapacity not only strips South Africans of access to stable electricity, which they deserve, but it also hampers the production of economic growth and constrains future job creation. Often, to prevent blackouts, Eskom pays South Africa's biggest power consumers, profitable businesses, to shut down production, preventing production at a time when we need radical economic growth. Precious public money is thus inefficiently spent on private enterprises, compensating them for not being productive and not creating jobs.

In 2008, the blackouts cost our country an estimated R200 million per day. This cost is likely to be doubled today. Until Eskom can keep the lights on, confidence in our economy will regress and jobs will not be created.

What the DA and South Africans find most unacceptable about the present energy crisis is that it was completely avoidable. Indeed, for several years South Africans have been told that the excessive electricity price increases were necessary to stop further blackouts. While Eskom and the government do not deliver on their mandate, consumers have no option but to pay ever increasing electricity prices. Eskom's monopolistic stranglehold over the South African economy must end.

Attempts by the DA to table the Independent System and Market Operator Bill, which would allow independent power producers to feed into the national grid or to feed power supply directly to consumers, thereby reducing pressure on Eskom, has been stopped at every turn by the ANC. Yet suddenly, yesterday, we heard from the President that the Independent System and Market Operator Bill was back on Parliament's agenda. We welcome this rather uncharacteristic move, but choose to remain sceptical until we see real follow-through and comment from the ANC in Parliament.

The DA will continue to fight to dismantle Eskom's monopoly through the creation of a transmission service operator, which would be entrusted with energy modelling and procurement for energy from both Eskom and the independent power producers, IPPs.

The DA remains committed to investing 10% of South Africa's gross domestic product in energy infrastructure development. This massive investment in infrastructure would include new electricity generation capacity and would ensure that our economy is adequately supplied. A DA government would ensure proper accountability in the management of South Africa's electricity generation and distribution grid. We would end exorbitant bonuses for executives who fail to execute their basic mandate. We would hold contractors accountable for shoddy work and delays.

Deputy Speaker, I am furious and the South African population is furious. Our country deserves better. In fact, it deserves so much better. Hon President, I ask you again: Where is the electricity? [Applause.]

Mr M G P LEKOTA

Mrs N W A MICHAEL

Mr M G P LEKOTA: Thank you, hon Deputy Speaker. Hon President and the Deputy President, congratulations to you are in order after this election campaign. I also extend congratulations to every person who has been entrusted by the people with the task of participating in and contributing to the running of the affairs of our nation. Thank you very much.

May I take this opportunity also to extend our gratitude to our own supporters, who saw fit to return us to the House so that we can continue with our innings. [Laughter.] It is a very special privilege to be trusted by the people to go and do the work on their behalf.

Mr President, your speech identified the need to deal with the issue of the economy as a critical issue in taking the country forward. That really did raise the hope, I think, especially against the backdrop of the adoption of the National Development Plan, that you had a framework within which you could place the country and take it forward. We were very optimistic that that was the route we would take. However, save for the fact that you identified this as an area of attack, it does not appear that your government has a plan to implement this National Development Plan and take the country forward, and it cannot be otherwise.

When you made the prediction that you intended to take the economy to the growth level of 5%, it is very difficult to see how that can be done without a sustainable framework for the implementation of strategies. We will not be able to attain a 5% growth rate from where we are at present, given the difficulties that the country is faced with. We will not be able to do that - not by eliminating pit toilets in Kroonstad. We will not be able to do that with the one or two municipalities that you were talking about because the taxpayers' money cannot finance sustainable development. It is the private sector that needs to be drawn in; that needs to be given the certainty that it can invest hugely, both from the domestic and international community. It must be able to invest in this country, satisfied that its investment will be protected and that that investment will not go into government projects but into primary and secondary industries, such as manufacturing, beneficiation and so on. The issues that you told us about yesterday do not deal with those basics of any functioning economy.

Thirdly, I thought you would to say something about what we were going to do with labour laws. [Interjections.] Hon President - don't divert me - as we are speaking to you today, the people of Diepsloot, Marikana, Gugulethu and so on are hungry because they have no jobs. They want to eat tonight; their children want to eat tonight. Therefore, it is critical that space is opened up so that small businesses can grow. But if legislation makes it difficult... [Time expired.] I think my point has been made, Mr President. Thank you very much.

The MINISTER OF HIGHER EDUCATION AND TRAINING: On a point of order, Deputy Speaker: I think the hon Lekota is sitting in the wrong seat. The last I remember he was sitting here. [Laughter.] I thought we are not allowed to move seats just anyhow in this House. Thank you very much. [Laughter.]

The DEPUTY SPEAKER: Hon Nzimande, there is no floor-crossing here. [Laughter.] Order, hon members, we now come to the maiden speech of the hon Minister of Small Business Development.

THE MINISTER OF SMALL BUSINESS DEVELOPMENT

Mr M G P LEKOTA

The MINISTER OF SMALL BUSINESS DEVELOPMENT: Hon President, hon Deputy Speaker, members of the House, comrades and friends, never in my life did I ever think that I would speak after hon Lekota with him being on the other side. I have come to terms with the fact that I now have to look at him, not from the point where I used to look at him 10, 15, 20 years ago. I would also like to say to the hon Lekota that I hope when you congratulated those who voted for Cope, you also meant to congratulate former voters of Cope who realised that Cope was a party without a future. You will be welcome back on the other side.

I, like millions of South Africans, am a product of a grandmother who not only had a dream but worked very hard to turn that dream into reality. A strong, self-reliant woman who graduated from being a domestic worker to a hawker, selling soft goods, to a small business person. She is probably smiling where she is today. She pushed me into doing a course on co-operatives and at the time I never understood what that course would do for me, but today I have to dig deep into those studies of commerce and other subjects to fit into my new responsibility.

The reason I am bringing up something so personal is simply because I think that waking up to the reality of the economic challenges facing our country is something that must be confronted by all, not just by government alone. Government must and will do what it can to create a conducive environment, like paying business people on time, but citizens must also take responsibility by taking advantage of opportunities where they present themselves, as my grandmother did. She did not have any government to refer to; she did not have any institutions to refer to; she did not have any banks to go to for a small loan in order for her to run her little business. However, the people today have a government that has made sure that the regulatory environment and the laws that have been passed are conducive to their endeavours. I know, of course, that in dealing with small business there is a lot we have to do. We have to dig deeper and look at some of the regulations and the legislation to see if it is conducive for our people.

We are in the month of June. Much has been said about that, so I will not go into that. I would like to say to the young people of today that many stories have not been told about many who sacrificed their lives; many whose bodies rest six feet down in the belly of Africa and other countries. Young people of today have a base from which they can fly. Those whom we left out there did not have that base.

Today we have a government and a leadership with a plan for the future: the National Development Plan. Our task is to fund and implement it. We have a Constitution and we have institutional recourse for the people of South Africa. My grandmother did not have such institutional recourse.

The ANC's 52nd conference directed that there be greater emphasis on measures to enhance economic growth, including the development of small business. The people of South Africa engaged in small business and co-operatives have for a while now been calling for a Ministry that will be focused on development, considering the potential for small business to ignite the economy. Their voices have been heard.

The National Development Plan states that 90% of jobs will be created through small and expanding companies by 2030 – and that might sound very far in the future, but it isn't. Small businesses should be resource-efficient and have a greater dependence on labour. We will pay special attention to this as we put our strategic plans together.

The new Ministry will be about the hawker, the florist and the plumber out there who have grand plans but do not know how to be assisted or where to go to get that support. It will be about bringing the assistance and information right to their doorsteps in the townships, in the villages and in rural areas. It will be about fast-tracking structures and institutional processes to create an environment conducive to the development of small businesses and co-operatives.

We strongly believe that small business is everyday business and small business is filled with extraordinary prospects and expectations. It will be about co-ordinating one strategy that overlaps all spheres of government. It will be about harnessing resources for the people that it is meant for. As I stand here I am 100% sure that each and every department has one thing or another for small business people. We will be knocking on your doors very soon, hon members.

For economic transformation to take centre stage, as the President clearly articulated yesterday, this government has to put the economy on an inclusive growth path. That being the case, small business development must also take centre stage to ensure economic development, transformation and inclusion.

Much has been achieved through the work done by the Departments of Trade and Industry and of Economic Development, but it is very clear that we need to change the way we view small business if the new department is to thrive. That change is not only meant for government alone but for the people who choose the path of small business and entrepreneurship to sharpen their skills and be alive to the opportunities available. And the opportunities are there.

This newly established Ministry will focus on enhanced support for small business and co-operative development. In this regard, emphasis will be placed on programmes to advance entrepreneurship, particularly among women, the youth and people with disabilities. Additional support will include access to finance; business skills development; market access; competitiveness; easing the regulatory burden; and advancing localisation, particularly leveraging on public procurement - the President did also refer to that. We will be facilitating pockets of innovative and geographically responsive small business through local economic development strategies; through incubation programmes; promoting and strengthening innovation among small business, particularly export-orientated manufacturing and service provision; and targeting indigenous knowledge systems, such as pharmaceuticals and medicines, seed banking and agriculture, focusing on informal business upliftment.

Of late we have been seeing on television the demonstrations taking place in Pretoria. We will look into that to see what it is that we can do to make sure that the environment under which informal business operates is conducive to them too.

We will advance the pillars captured in the ANC government makgotla, the action plan on radical economic transformation, which calls for key interventions and includes the elimination of unnecessary regulatory burdens and reduced input costs to foster more inclusive growth; expanded economic opportunities for historically excluded and vulnerable groups; and the assurance that productive sectors account for a larger share of production and employment.

This mandate requires a radical realignment of institutions that enable and support small business development, including the Departments of Trade and Industry, Economic Development, and Science and Technology, the National Treasury, development finance institutions, and the Departments of Education, because we truly believe that the issue of an entrepreneurial spirit must not only start when people have finished their schooling and think they have nothing else to do. This must be inculcated while they are in school.

We acknowledge and applaud the good work being done through existing programmes, among others the supplier development and various entrepreneurship and incubation initiatives. Partnerships will assist us to take this forward in a quest to take South Africa forward. The realignment will entail a cross-sectoral focus wherein some of the direct functions will migrate to the new department while some cross-cutting functions will remain as a collaborative contact point. In this regard we will ensure that the relevant transversal agreements between cluster Ministries are considered, with particular focus on industrial policing, access to finance, public procurement, supplier development and the creation of black enterprises.

We are under no illusion about the scale of this effort. The amount of goodwill that came through since the announcement by the President of the decision to have this Ministry has been overwhelming. We cannot fail our people. Where matters depend entirely on our Ministry, we will leave no stone unturned to fulfil our mandate. We will have no space for mediocrity, no room for failure and no room for crippling bureaucracy. Too many South Africans have high hopes for this Ministry. I am sure that myself, supported by Deputy Minister Elizabeth Thabethe, and staff will not fail in the task ahead of us.

We now have an office at the Department of Trade and Industry campus, 77 Meintjies Street, Sunnyside, Pretoria and, hon Makunyane, we also have an e-mail address on which we can be contacted. We also do have a post box.

I had no plan to divert from this speech. However, I have to respond to hon Maimane's claim that the DA has done well in respect of small business. Facts show differently. Over these five years the DA-run Western Cape government scaled down support for small business efforts such as the Red Door centres, which were set up to help young small entrepreneurs. In the same period national government stepped up support for small business in the Western Cape. National government's support for small and medium enterprises in the Western Cape was in excess of R2 billion, while the Western Cape cut budgets. National support for small and medium enterprises comes via the Industrial Development Corporation, SA Feedlot Association, National Empowerment Fund, co-op units and the Agro-processing Competitiveness Fund, to mention just a few. If only the DA and the Western Cape government did half as much as they claim, there would be greater progress in support for the entry of more black-owned small business enterprises in the country.

While this is my maiden speech, I could not resist making these comments and sending the message to the DA that the ANC lives. The ANC lives! Thank you. [Applause.]

Ms A M DREYER

The MINISTER OF SMALL BUSINESS DEVELOPMENT

Mrs A M DREYER: Deputy Speaker, since the ancient Greeks, effective states have been governed in a clean, corruption-free manner and with professional financial management. I am using these two enduring principles to evaluate the present government.

Since President Zuma came to power, he has made promises about fighting corruption in every single state of the nation address. For instance, in 2011 he said the fight against corruption continued; in 2013 he said that corruption was a burning issue; in February 2014 he promised to clamp down on tenderpreneurs; yesterday he promised to tackle procurement problems. We know the problems, but what is the reality? The World Bank has found that between 2009 and 2012, the Zuma government's control over corruption has weakened by 10%. [Interjections.]

Mr B A RADEBE: Hon Deputy Speaker, on a point of order, we have the hon President Zuma's administration and not the Zuma administration, please! [Interjections.]

Mrs A M DREYER: According to Transparency International's Corruption Perceptions Index, under President Zuma clean governance has deteriorated by 17 places.

In sharp contrast to this stands the Western Cape. In its first year in government, the DA passed a law prohibiting officials from doing business with government. This created confidence and led to job creation. The DA also opened tender committees to the public, further strengthening business confidence. What did President Zuma do? He awarded contracts to cadres like the Nkandla architect Minenhle Makhanya.

The next essential component of effective government is professional financial management. President Zuma further stated that under him governance was getting better. But what are the facts? According to the Auditor-General Kimi Makwetu, during the last financial year, misappropriation of public money has escalated by 33%! He also found that in the same period, government departments had spent more than R2 billion in a fruitless and wasteful manner, as well as a further R26 billion in an irregular manner.

The Special Investigating Unit estimates that every year up to R30 billion is lost as a result of corruption in government procurement. That is almost R1 000 per second! These staggering findings must be ascribed to the fact that 93% of President Zuma's government departments simply disregard financial regulations.

The question is: Does the root cause of this mismanagement not lie at the centre of government, with Number One? Over R240 million of public money was spent on his private home at Nkandla, for "security upgrades" such as a cattle kraal, a chicken run and a swimming pool. [Interjections.] An amount of R3,6 million of public money was spent on legal fees to prevent the release of the so-called spy tapes that contain the real facts about President Zuma.

When President Zuma announced yesterday that he would locate a central tender board in the Presidency, we gasped at this recipe for unscrupulous centralised dishonesty. We remember that 783 criminal charges were lodged against President Zuma for money laundering, fraud and corruption. [Interjections.]

With the R30 billion squandered by this government every year, a DA government could pay 162 000 new teachers and award bursaries to 500 000 students. The point is that the government could create jobs if it cut corruption on the one hand and developed skills on the other.

Last year, the independent SA Institute of Government Auditors found that seven of the 10 best-managed provincial departments were in the Western Cape. [Applause.] Clearly, the DA provides the best government in South Africa. That is why this party is growing so spectacularly, and why, on 7 May, more than 4 million South Africans voted DA. [Applause.]

Mr N T GODI

Mrs A M DREYER

Mr N T GODI: Mr Deputy Speaker, comrades and hon members, Comrade President, on behalf of the APC I wish to congratulate you on your re-election as the President of the Republic and on your state of the nation address. [Applause.]

There can be no question about the urgent need for economic transformation. Otherwise we will continue to reproduce the socioeconomic relations inherited from the settlers' colonial rule. Economic development must be the central task if we are to improve the quality of life of the African people in particular and eliminate the scourge of unemployment, poverty and inequality.

Therefore the APC calls on government to take bold measures and play a decisive role in the economy. The private sector has not covered itself in glory on issues of transformation, be it affirmative action, employment equity or job creation. If we looked to them, we would only be waiting for Godot.

Regarding the commitments that the President has made, we can only say that unless political and administrative leadership is exercised firmly and decisively, we will continue to have a gap between policy and implementation. We will continue to have challenges about the quality and timeousness of service, especially for poor African communities. There must be a paradigm shift in favour of the people.

Let us use Lenin's dictum of "everything for the people and nothing against the people". In that way, we would eliminate a lot of whys. Why is it that social and labour plans of the mining companies are not properly monitored and enforced? Why is it that the directors' accounts in the provinces are not audited by the Auditor-General, and that there is no transparency and accountability about them?

Why is it that the communities that are rich in mineral deposits live in abject poverty? Why is it that the people of Green Park in Ward 19, here in Cape Town, who have been staying in that area for 20 years, do not have a single formal house and no electricity? Why is it that in our regional offices there is such poor communication with land claimants and why is it that there is such poor handling of land claims?

There is also a lack of funding of the early childhood development centres and the management of all that ... [Interjections.] I can go on and on. Thank you. [Time expired.] [Applause.]

Mr J R B LORIMER

Mr N T GODI

Mr J R B LORIMER: Hon Deputy Speaker, I was disappointed to see reports in the media after a recent meeting of the ANC's national executive committee that recommitted the government to increased state intervention in the mining sector.

Since that State Intervention in the Mining Sector, SIMS, document emerged monstrously from the statist crypt, we have had continued expenditure in the three state-owned mining companies that we know of; we have had a sector that continues to reel under the assault of bad regulation conducted badly, which disincentivises investment.

We have had the unfortunate conjunction of that bad regulation with the utter failure of the state labour and local government policy that resulted in the Marikana shootings. To cap it all, there is the new mining law, the Minerals and Petroleum Resources Development Amendment Bill, which was rushed through in the dying hours of the Fourth Parliament.

In that SIMS report there was grandiose talk of the creation of between 400 000 and 1 million jobs within two years of the plan being accepted. It is now about two years since that policy was adopted. So how is that working out?

Our undemocratic labour dispensation has led to a platinum strike, which has still not ended, and has seen mining, as measured by Statistics SA, go down by almost a quarter. This is the biggest drop in 47 years. We have seen miners on the platinum belt lose more than R10 billion in wages and I am told that 128 businesses in Rustenburg have had to close their doors. It is not just the strike that is to blame.

The new-look Minerals and Petroleum Resources Development Amendment Bill was a galactically damaging and irresponsible piece of legislation. It will cost us jobs. By our count, it may be unconstitutional for up to eight different reasons. It has resulted in, if not the death of our new exciting oil and gas industry, then the placing of that industry in intensive care. One oil company has announced publicly that it is redirecting what is believed to be tens of millions of rands in exploration expenditure from South Africa this year to other countries. It is not surprising, because the Minerals and Petroleum Resources Development Amendment Bill effectively allows for nationalisation.

Even drillers for shale gas, which is lower risk and which the hon President described in glowing terms last night, are nervous and wondering whether it is worthwhile committing any money to South Africa. The only reason those companies are still around is either because they have already committed some money or because they are still hoping that somebody, somewhere in government will show sense and scrap the amendment Bill.

Last night, we heard about big plans to talk to big business, as if this would magically make a difference. Well, oil and gas drillers talked extensively to this government about the Minerals and Petroleum Resources Development Amendment Bill. They talked and talked, but government did not listen. Unless government's attitude changes, nothing else will.

What this government has to realise is that its decisions have consequences. And it should not just be engaged upon finding ways to divert more of the people's money via the state to the pockets of comrades, cronies and cousins. This government has a duty to the people of South Africa, whose interest it serves. It owes a duty to people like the wife of the platinum miner who believes her husband will lose his livelihood when the mines close shafts because of the strikes. It has a duty to young South Africans who are looking for jobs but will not find any because investors chose to go elsewhere rather than put their money in South Africa.

It has a duty to people who used to work at each one of those 128 businesses in Rustenburg. Each one had employees and owners. Each one of those people had hopes and dreams that have been shattered because this government set up a labour system that benefited its political allies and cronies in Cosatu, at the cost of democracy and free decision-making in labour.

Mining is not a game that can be played by the political elite for their own enrichment. So many of our people stand to keep or get jobs if our mining and oil and gas industries were allowed to grow. But they will not grow until there is money to grow them. And that money can only come from government, which does not have it, or from investors, who will not risk their own money while government seems intent on taking it away from them.

So, the philosophy espoused in the SIMS document is a dead end. Whenever this government talks about greater state involvement in the economy, I think of public hospitals, public schools and the department of housing. The state runs all three and the services offered are appalling. Anybody who can afford to will have nothing to do with any of those state-run organisations and will go elsewhere. Certainly, people in this House do. If there is greater state involvement, that is what will happen in mining too.

But SIMS is not the only plan the government has in its arsenal. It also has the National Development Plan, which does offer another path. It is the path of growth. Growth brought about by a labour regime that is properly democratic and balanced between the needs of job creators and workers; growth brought about by clear legislation, which provides incentives that will bring the money for the development that we need.

There is so much talk about the NDP, yet this House passed Bill after Bill that directly contradict the NDP. The Minerals and Petroleum Resources Development Amendment Bill is one of those Bills. One starts to wonder whether the government is really committed to the National Development Plan at all, or whether it is just an exercise in smoke and mirrors, designed to give them an easy ride while they pursue other ideas.

However, I believe the NDP could be one of the answers to our problems. It could bring us jobs and if it brought us jobs, that would mean that all the people of this country would share in the country's mineral wealth, not just the connected few. [Applause.]

The Premier of the North West ...

18:13:24 (Speaker)

Mr J R B LORIMER

SeTswana:

TONA YA BOKONE BOPHIRIMA (Rre S Mahumapelo): Motlotlegi Motlatsa Mmusakgotla a ke tseye tšhono eno go go dumedisa. Ke dumedise le Moporesidente wa rona, Rre Jacob Zuma, Motlatsa Moporesidente, Rre Cyril Ramaphosa, lona lotlhe ba lo leng karolo ya khuduthamaga ya tsamaiso ya puso ya rona ya Aforekaborwa le lona batlotlegi le basha botlhe ke a lo dumedisa mo boemong jwa kgotla ya bosetšhaba ya mo nageng ya rona ya Aforekaborwa.

Se sengwe sa dilo tse re tshwanetseng gore re se ithute jaaka baemedi ba setšhaba ke go ruta batho ka dilo tse re kopanang le tsone mo matshelong a rona. Jaanong re na le bothata jwa gore go na le boseilakgaka se nwa moro mo nageng ya rona e. Ba re ba rata Rre Mandela mme ga ba rate mokgatlho wa ANC. [Legofi.]

Batho bao ba a re makatsa gonne Rre Mandela ke ngwana wa ANC. O goletse mo go yone. E ile ya mo tiisa, ya mo natlafatsa gore a nne moeteledipele wa makgonthe wa lefatshe lotlhe. Batho ba ba jaalo ka Setswana gatwe ke boseilakgaka se nwa moro. [Legofi.]

English:

They don't like the ANC but they like Nelson Mandela. That is hypocrisy in the extreme.

SeTswana[18:20:55]

Batho bao ba leka go dira dilo tse di sa kgonagaleng ...

English:

... separate oxygen from water.

SeTswana[18:21:01]

Ba batla go tsaya Rre Mandela ba montshe mo mo kgatlhong wa ANC.

English:

However, as the ANC we understand that we don't only lead our supporters and members of the ANC; we lead the whole of society.

The late President of the ANC, Mr Nelson Mandela, is an expression of the revolution pursued by the ANC. We therefore thank him for his deeds and conduct, which continue to educate the rest of society on behalf of the ANC.

SeTswana[18:21:40]

Rre Moporesidente, re na le mathata a bana ba e leng diganana tse di as godisiwang sentle mo nageng e ya rona. Bana ba ga ba reetse molao wa batsadi ba e leng bagolo ba bona. Fa ba tswelela ka boganana jwa bona mo nageng e ya rona le mo Palamenteng e e tlotlegang, lo baitšhokele ka ntlha ya gore boganana ke e nngwe ya ditiro tse re tshwanetseng go itepatepanya le tsona. [Legofi.]

Gape re tshwanetse re thuse ka go ruta batho gore puso ya batho e raya gore o rata kapa o sa rate, fa go na le ba ba tlhophilweng gore ba go etelepele, le fa o ka tlhatsa letlhatsa batla go etelapele. [Legofi.]

English:

The people of South Africa, through democratic processes, decided that they were going to be led by the ANC. So, to those who like or do not like the ANC for whatever reasons, I say: The people have chosen to be led by the ANC today and even in the days to come. [Applause.]

SeTswana[18:23:12]

Rre Moporesidente ke ne ke re o se ka wa tshwengwa ke batho ba ba lalang ba lora, ba pitika mo dikobong, gore tsatsi lengwe ba ipone ba eteletsepele naga e ya rona. Seo se ka se kgonagale gonne baagi ba itse gore mokgatlho wa bona wa ANC ke ona feela o o ka netefatsang gore matshelo a bona a a tokafala. Puso ya batho e letlelela gore motho a ka lora a ipone e le Tautona kgotsa Moporesidente wa naga. Seo se ka se kgonagale.

English:

We must allow them to continue to dream but their dreams will never materialise.

Hon President, on behalf the NCOP, I must say that we represent the frontline troopers who are ready to implement your line of march and who will make sure that we build on the foundation of bettering the lives of our people, as we have done since 1994. [Applause.]

We are ready to continue to communicate the message that nobody can be opposed to, namely the message that the life expectancy of the people in South Africa has increased from 56,5 in 2009 to 60 in 2011. Numbers don't lie. This did not happen by accident. It came about because the ANC is committed to changing the lives of our people.

Hon President, as frontline troopers of the revolution, we are ready to support the advanced idea of changing society. One of the most advanced ideas in the changing of our society is the National Development Plan, which was developed under your leadership. Those who oppose the NDP don't want you, as the leader of this country, to express your visionary leadership. Nevertheless, you must continue to lead our people in line with the NDP because you come from a leadership collective of the ANC that understands what revolution is about. [Interjections.]

Hon President, we are also ready to implement the programmes that you outlined yesterday, to make sure that we achieve the objectives of the NDP by 2030.

SeTswana[18:25:54]

Re a itse gore tselakgopo ga e latse nageng.

English:

On this journey of implementing the NDP...

SeTswana[18:26:02]

... go tla nna le bo rra maparego le bomma maparego ...

English:

... who do not want the NDP to succeed. But, because we are resolute in our approach, we will succeed.

Hon President, because we come from an organisation that is humble; an organisation that is able to acknowledge challenges and knows how to deal with them, you did indicate that the economy grew below potential over the last three years. That represents the humility of the ANC because we don't want to deceive our people. Our people know that working together with their movement, the ANC, they will be able to overcome the challenge of turning the economy around.

It will not matter, hon President, whether the plans you come up with on behalf of the ANC are good or whether the leadership you will continue to provide to the country is visionary, there will always be those who will oppose whatever ideas you come up with. But what you should know is that the people of South Africa support you and the ANC. [Applause.]

We are encouraged by the ideas you presented yesterday. These include, among other ideas, the fact that we will take advantage of the wind, the sun and the biomass in our environment and will exploit these advanced technologies as a means to address the problems around electricity supply.

We are also encouraged by the fact that you indicated, without any ambiguity, that there will be a five-year investment of R1 trillion in new infrastructure. If that is not extreme radicalism, then I don't know what radicalism is. A government can only be thought of as radical when we it is so committed to bettering the lives of its people that it invests R1 trillion in infrastructure.

Hon President, yesterday you also indicated that, as part of building the necessary infrastructure for our country to better the lives of our people, there will be an investment of R847 billion.

Hon President, it is not everybody who will agree that Ministers must be held accountable. The reason is that they want government to fail. We support Ministers being held accountable and you must remain resolute on that point because you are there to make sure that the ship is steered in the right direction.

Hon President, we were impressed by what you indicated yesterday when you said that the building of 60 MeerKAT dishes was unprecedented in this country. That represents the radicalism you have been talking about. Those who do not understand what radicalism means must rather go and revisit the speech that you presented yesterday.

We are also encouraged by the fact that this radicalism you spoke about, hon President, will include the expansion and modernisation of broadband and digital broadcasting so that the masses of our people can access everything that relates to communication and broadcasting.

Promoting local goods by insisting that it makes up 75% of purchases will definitely grow the local economy. This is part of the radicalism you spoke about, hon President, and we support it. The development of small, medium and micro enterprises is an important part of the economy and, without batting an eye, we support your decision to appoint a Minister that will be solely responsible for this important task; a task that is meant to change the lives of our people.

SeTswana[18:30:18]

Rona re itse gore bagolo ba rona ba godisitse bana ba bona ka go rekisa magwinya kwa bopalamelong jwa dithekisi go netefatsa gore bana ba gagwe ba nne le botshelo jo bo botoka. Fa o sa godisiwa ka tsela eo o ka se tlhaloganye.

English:

... this important and advanced idea of appointing a Ministry that focuses on SMMEs. [Applause.] However, because we are a patient organisation, we will continue to educate those who find it difficult to understand some of the things that we are pursuing.

The fact that a record-high 9,6 million people came to South Africa is an indication that people love this country. People do not just love this country by mistake. They love South Africa because of the improvements they see. They like the weather, the hospitality and the services they receive in South Africa. If that were not the case, those 9,6 million people would have chosen to visit another country. The reason they come to this country is because their heads are working well. [Interjections.]

We must also continue to patiently educate ... [Interjections.]

Mr I M OLLIS: Hon Deputy Speaker, will the Premier of the North West take a question about the political mess in Tlokwe?

The DEPUTY SPEAKER: Hon Premier, will you take the question?

The PREMIER OF THE NORTH WEST (Mr S Mahumapelo): Deputy Speaker, the question can be forwarded to me via e-mail and I will look at it next week.

The DEPUTY SPEAKER: Hon Premier, you may proceed.

The PREMIER OF THE NORTH WEST (Mr S Mahumapelo): We must also indicate that, as a developmental state, we are pursuing a mixed economic system. Now, it cannot be that people can stand up and say that government cannot intervene as far as the issue of jobs is concerned. We will make sure that we create the necessary conditions conducive to employment growth and the growth of the economy but we will also make sure that there is job creation in this country.

Let me also indicate, hon members,...

SeTswana [18:32:46]

... gore go na le bothata jwa batho ba e leng botlhogonyana moimele, ba ba sa tlhaloganyeng. Re kopa gore lona ba lo dirang le bona lo tswelele go nna dipelo telele go ba ruta gonne ba basha ka kwano. Lo se ka lwa ba felela pelo. Le fa ba dira dilo tse dimakatsang, lo se ka lwa makala, feela lo tswelele go nna dipelotelele. Sekai ke go re ...

English:

... they call themselves democrats. There is a democratic process, set in motion by this government, to deal with issues relating to Nkandla. They don't want to allow that process to go on unhindered until it comes to its logical conclusion. And I must say to them... [Interjections.]

SeTswana[18:33:36]

... ba ipaakanye mo meweng gore ...

English:

... they have to live with the outcomes of that democratic process. [Interjections.]

SeTswana[18: 33:45]

Ko bofelong a re leboge ...

English:

... on behalf of the NCOP...

SeTswana[18:33:46]

... gore go na le tiragalo e e diragetseng mo letsatsing la gompieno gore re tseye karolo le rona...

English:

... in these debates, which are important as part of entrenching and growing democracy in this country. [Applause.]

Hon President and the rest of the collective, I must say to you that challenges are the necessary platforms for success. Thank you very much. [Time expired.] [Applause.]

Mr j A MNGXITAM

The PREMIER OF THE NORTH WEST

Mr J A MNGXITAM: Deputy Speaker, the Commander in Chief, hon members, ...

Setswana:

Ke tlhaloganya gore rre yo o fetsang go bua fa, rre wa kwa Bokone Bophirima yo ba mmitsang Jesu Keresete kwa a tlhagang teng...

English:

... and I am not going to go there, but let us just deal with this.

Hon Sisulu, I am going to try to say this with as much respect as possible. There is nothing that our President, Mr Jacob Zuma, can say or think that can possibly be over the head of the commander in chief. And I say this with all the respect I can muster. [Interjections.]

I also want to say that we are not interested in the ongoing howling here. We are interested in setting a national agenda. And that agenda has to go against the alliance against the people, which we have been witnessing over the past 20 years. [Interjections.]

The DEPUTY SPEAKER: Order! Hon member, what are you rising on?

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Deputy Speaker, it is a pity that, as the NCOP, we are disadvantaged here in that we cannot rise on orders and so on. But as far as "commander in chief" in this institution is concerned, it would only make sense if that designation was used to refer to the President of the Republic.

The DEPUTY SPEAKER: Very well, hon member. We will look into that.

Mr J A MNGXITAM: No problem, Deputy Speaker. Let us do this. Let us deal with the alliance against the people. We are shocked when we see that both the ANC and the DA agree on the capitalist National Development Plan. We are shocked when we see the ANC and the DA agreeing on labour brokers. We are shocked when we see the ANC and the DA agreeing that workers' wages must be kept low because they believe it is the only way to attract foreign investors. The DA and the ANC agree that mines must remain in the hands of multinationals. The DA and the ANC both provide open toilets for our people. The DA and the ANC agree that land should continue to be owned by a few white people.

Mr J M MTHEMBU: Deputy Speaker, on a point of order: There is no agreement on these issues between the DA and the ANC - none whatsoever. It cannot be found anywhere.

The DEPUTY SPEAKER: Order! That is not a point of order. Please proceed, hon member.

Mr J A MNGXITAM: Deputy Speaker, I think these points of order are just used to take up my speaking time. What the hon member said is no true. If the ANC does not agree with the DA, then there is a gift we want to give you. I spoke to the commander in chief, the hon Malema ... [Interjections.] Here is the gift.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Deputy Speaker, on a point of order: There is one commander in chief, and that is the President of the Republic!

Mr J A MNGXITAM: Deputy Speaker, I withdraw those words.

The DEPUTY SPEAKER: Order, hon members, order!

Mr J A MNGXITAM: There is a gift that has been given by the hon Malema to the ruling party. The gift is this: Here is the two-third majority required to change the Constitution, particularly the property clause, to make sure that we are able to take land and distribute it to our people without paying a cent. [Applause.]

Mrs M T KUBAYI: Deputy Speaker, on a point of order: I would like to urge you to request members of the EFF not to whistle in the House because it is unparliamentary.

The DEPUTY SPEAKER: Order! Very well.

Mr J A MNGXITAM: This gift is a gift that I want to urge you not to undermine. Don't belittle it. Take it, because this is the only way we can return the land that was stolen from our people. This is the only way can return dignity to our people. [Applause.] This is a gift from this party; an important party in this House. You will not understand this.

There is a national consensus that land in South Africa is stolen property. There is a national consensus that there is no land reform in South Africa. After 20 years, only 8% of the land has been bought back by paying R50 billion. We are buying stolen property. We are involved, as this House. We as black people should not be debating this issue. We should be agreeing. Our land was stolen and it should not be bought back. It must be redistributed to our people. Some workers remain slaves in this country. As the EFF we say, let us pay them a R5 000 minimum wage. Let us give them land. You have heard this: We have given you a gift; you must take it. [Time expired.] [Applause.]

The DEPUTY SPEAKER: Order! Hon members, you may not whistle in the House. You may interject and be happy, but you may not whistle in the House. It is unparliamentary. Please do not do that.

Mr N F SHIVAMBU: Hon Deputy Speaker, you are repeating the mistake made by the hon member from the ANC on that side, namely that the members who are whistling are EFF members. That is not true. Which member of the EFF whistled? [Interjections.] Who exactly whistled? Please do not jump to the wrong conclusions. None of us did so. We are not intimidated by this thing that is happening. You don't know what is really happening. Please, Deputy Speaker.

The DEPUTY SPEAKER: Order! Hon members, allow the Deputy Speaker to do his job. I said hon members should not whistle in the House. I did not mention any specific party. So, please ...

Mr J S MALEMA: Hon Deputy Speaker, you must call hon Jackson Mthembu to order, because Jackson Mthembu made the serious allegation that we were whistling here, when we were not.

The DEPUTY SPEAKER: Order! Hon Malema ...

Mr J S MALEMA: Deputy Speaker, Jackson Mthembu makes the allegation that the EFF is whistling and we are not whistling, so you must call him to order. [Interjections.]

The DEPUTY SPEAKER: Hon Malema, he is hon Jackson Mthembu.

Mr J S MALEMA: Hon Jackson.

The DEPUTY SPEAKER: Hon members, do not make the House impossible to run. Let's allow hon members to speak. Unless we allow the decorum of the House to be observed, we will not be able to do a good job in this debate. Let us not get diverted. Let's focus on the substance of the debate, and if there are any interjections, let them be useful and quiet – if they can be. Please, let's allow the debate to proceed.

The MINISTER OF SPORT AND RECREATION: Hon Deputy Speaker, I do not want to describe the physique of a person, but there is an hon member here who is wearing a Scotch jacket. If that hon member belongs to the EFF, he is whistling the whole time.

The DEPUTY SPEAKER: Hon Minister, please, I have made the ruling. Hon members, let us desist from doing that.

Mr G A GARDEE: Deputy Speaker, on a point of order: Can we run the tape to see and hear who was whistling? Our hon member was not whistling.

Mr N S MATIASE: Deputy Speaker, I rise to call for calm in the House. Secondly, let members of the ruling party not provoke us into offering what the hon Zokwana offered to do when he said, "You will march naked." We don't want to offer that here. Can you please call them to order and restore calm?

The DEPUTY SPEAKER: Order! The House will be in order. Let's proceed.

Mr G G HILL-LEWIS

Mr J A MNGXITAM

Mr G G HILL-LEWIS: Deputy Speaker, Mr President, this debate takes place at an urgent time for South Africa. We don't know yet whether our economy will formally enter a recession, although it seems likely. But that is hardly the point. The point is that all of this means ordinary people are suffering and our country's long-term potential is being persistently undermined. We cannot begin to overcome poverty and our social challenges if we are stuck in a low-growth, no-jobs quagmire.

That is why last night's speech, Mr President, was such an opportunity and why, frankly, it was such a deep disappointment. Mr President, it is not as if you had no warning. You had ample time to enact the radical transformation you speak of. You heard the strikes, the social unrest and the calls for reform growing louder and louder in each of the years of your first term, but you did nothing. You dithered on the youth wage subsidy for three years, while the DA implemented it in year one. And you have let Medupi run four years late and counting. In nearly every area of service delivery and policy there is simply a giant schism between what this President says and what his government does, and that continued this morning.

Hon Radebe started by blaming everything on external factors. He would have us believe that our current crisis is purely the result of the global recession, but that is simply not an adequate explanation. Nearly all of our competitors are growing much faster than we are - Peru at 5,8%, Malaysia at 4,8%, Chile at 4,1% and Nigeria at 7%. He took no responsibility for the policy uncertainty, corruption and chronic delivery failure that has led to this crisis. Minister, you cannot fix a problem if you can't even diagnose it properly. The global recession may have slowed our growth, but it did not put it into the reverse gear – your government did that. You made a fascinating comment about your government wanting to expand the bourgeoisie. I wonder whether the next speaker, the hon Davies, and his fellow SACP colleagues want to comment on what they think about an expanding bourgeoisie. [Applause.] I see the hon Cronin is back in the House.

Then there was the strong language from the hon Carrim, who promised decisive action and a new determination, specifically mentioning infrastructure. Why not start with the truly radical step of simply spending the budgets you have? If you had spent your budgets, we would be able to spend an additional R161 billion on infrastructure - but you have not. If you want to do something radical, hon Minister Zulu, the new Minister in the Cabinet – congratulations, get your colleagues to pay the small businesses and contractors on time. [Applause.] Every single department in this government, bar one, pays late. Some take as long as a year - hon Motshekga's department, for example. The only thing radical about that is radical incompetence. [Applause.]

Hon Kubayi, I'm afraid to say I had a whole blank page waiting for you to say something worth responding to, and the page is still blank. [Laughter.]

Then we come to the hon Sisulu. After her speech, one was left wondering whether the ANC hadn't sacked the wrong Sisulu. [Laughter.] You spoke about the ANC's mandate, hon Minister, but I would not be so confident if I were you. The ANC has just had its worst electoral performance ever. You are right on the edge and had lost two additional metros and you have got no reason to be pleased with the result in Gauteng - in fact, you should be deeply worried.

Hon Premier of the North West Province, thank you for that speech, but, really, I would not be as confident as you came across to be with only 51% of the vote in Tlokwe, where you had to fire half your party just to stay in government because they kept voting for the DA. [Applause.]

Minister Sisulu, you said a lot about the DA's government. Let me remind you that the Western Cape has the highest access to basic services for the poor in the entire country. And we pay 100% of contractors within 30 days all of the time.

Minister, just before you ask me a question, listen to this point ...

The MINISTER OF HUMAN SETTLEMENTS: On a point of order… I will not be told by him when to ask a question.

The DEPUTY SPEAKER: Order! What point are you rising on, Minister?

The MINISTER OF HUMAN SETTLEMENTS: I am rising on a point of order of the member misleading the House. Additionally, he cannot stand at the podium and point fingers at members. It is completely unacceptable. [Interjections.]

The DEPUTY SPEAKER: Hon members, please lower your voices. Please go ahead, hon Hill-Lewis.

Mr G G HILL-LEWIS: Minister, when you were last the Minister of Housing, you promised to eradicate informal settlements by 2014. Well, here we are. And in this House you dare to bring up Lwandle. You dare to bring it up. You should be ashamed. It is only the City of Cape Town that has done anything for the people of Lwandle. All you did was appoint another committee to study the problem, headed by another cadre looking for work after being fired by the ANC. [Applause.] The only question you need to answer is which Minister in your own Cabinet gave the specific instruction to evict those people on a Sunday in the pouring rain. [Interjections.]

The MINISTER OF SMALL BUSINESS DEVELOPMENT: Hon Deputy Speaker, I have a question to ask the hon member. The hon member keeps referring to the City of Cape Town. How many black people live in the City of Cape Town?

Mr G G HILL-LEWIS: Several million, I don't have the exact figure. But that is a silly question.

The Minister spoke about the Johannesburg billing crisis. The mayor who told us just a few years ago that "there is no crisis" is now sitting in these benches. I wonder what he has to say about what the President said last night about Johannesburg.

Mr President, your main job in this term is to bridge the divide between plans and action. If you fail, that will be your legacy and the legacy of your party. The people of South Africa and history will never forgive you. Thank you. [Applause.]

The MINISTER OF TRADE AND INDUSTRY

Mr G G HILL-LEWIS

The MINISTER OF TRADE AND INDUSTRY: Thank you very much, Deputy Speaker. Mr President, there has been a fair amount of confusion in this debate about the meaning of the main theme that you raised in your speech last night: radical economic transformation. And, I think, there have been a couple of really glaring examples in this debate about what radical economic transformation is definitely not about. I want to give two examples to begin with.

The first is that "radical" is definitely not doing what the hon Maimane did, and that is calling for bold new ideas and then trotting out tired old clichés, because that is what he did. He said that what we needed to do was simply to repeal some of the legislation that the DA didn't like. That was added to by the hon Wilmot James, who complained about the components of the New Growth Path, Ipap and the infrastructure programme as having too much status. I think we need to ask this: If that is the case, why is it that when business process service incentives are deployed to support the roll-out of business process service centres in the Western Cape, or when the state-owned Industrial Development Corporation rolls out incentives to support green industries in the Western Cape, or when tariffs are introduced and rebate schemes are introduced and tax incentives are given to support, for example, the roll-out of television manufacturing in the Western Cape – when all these things happen with the status policies - the Western Cape government is the first to try to claim the credit. Why is that the case? [Interjections.]

I think we should not take too seriously the claims made that the DA and the Western Cape are all about supporting small business. The hon Minister Zulu made the point: The DA closed down every single Red Door business support service in the Western Cape and we had to reopen them as Seda centres. We had to run to stay still, because the DA took us back. That is one example.

What about the claims of red tape? Well, go and ask traders in Mitchells Plain or other parts of the Cape Flats. Are they allowed to trade under the regulations of this city in areas that are economically lucrative, let alone come into the centre of town and trade? No, red tape reduction is actually more of a myth than a reality. [Interjections.]

So, I think that is one example. The other example is a bunch of well-known bons vivants and playboys, who are known for acquiring their clothes in some of the most upmarket boutiques in this country, putting on workers' clothes and coming to Parliament as though this were some sort of fancy-dress party. That is not radicalism.

And then we had a lot of drama: This self-styled commander in chief coming in here, giving his first speech, shaking up Parliament. What did he do? He walked in here, proclaimed that he was the champion of the downtrodden, the oppressed, the working class of the country. But what was the first issue he raised? It was the Parmed medical scheme. [Laughter.] I think the word for this is "anticlimax".

What, then, is radical economic transformation? I think we can do worse than looking at the Oxford English dictionary definition of "radical". It tells us that radical relates to, or affects, the fundamental nature of something. It is about far-reaching and thorough actions, characterised by a departure from tradition. It is innovative or progressive. That is what radical is about.

Now, I think that radical economic transformation in South Africa must mean radical transformation on a number of levels. It must mean radical transformation of the productive structures of our economy. It must mean radical transformation of production relations, which must be less conflictual, characterised by more equitable benefit-sharing and by less inequality. It must mean placing job creation at the heart of work programmes and promoting a more inclusive job-rich pattern of growth.

I think, Mr President, a number of commentators, and not only in this House, have missed the central point that you were making. What you were saying was that only radical economic change that has these characteristics will be capable of pushing back the triple challenges of unemployment, poverty and inequality. Nothing less will make the grade. That is the point the President is making. [Applause.] We want 5% growth. We have to bring about radical change at all of these levels.

Our vision and our broad directive compass is the National Development Plan. But within that, we recognise the New Growth Path, the infrastructure programme and the Industrial Policy Action Plan as key components and drivers of taking us where we want to go.

In my input I want to raise just one of those dimensions: changing the productive structure of the economy. What does this mean? Well, the hon Carrim started to make the point. He pointed out that under colonialism, carried through under apartheid, South Africa was incorporated into the world economy as a producer; an exporter of primary products, principally mining commodities. That is what we were incorporated as. And that political economy resulted in drawing large numbers of low-skilled people into basic pick-and-shovel work in the mining industry. Those people were drawn in not just from South Africa, but also from neighbouring countries.

Verwoerd famously asked what the point was of teaching a black child mathematics when his horizons were only to be a hewer of wood and a drawer of water. He demonstrated himself to be a racist and an oppressor, but he was not a fool. That is all the owners and controllers of the economy wanted at that time - low-skilled people to do pick-and-shovel work.

Now, the thing is that that political economy had entered into deep structural crisis already in the 1970s, with the expulsion of large numbers of people from production. We were partially rescued by the fact that we also are not just producers of precious metals, like gold, and precious commodities, like diamonds – those are past their peak of the 1970s – but also of important industrial minerals like platinum, iron ore and ... [Inaudible.]

Mr G A GARDEE: Hon Deputy Speaker, I rise to find out from the hon member what he meant when he said that Verwoerd was not a fool.

The DEPUTY SPEAKER: Order! You can have that discussion afterwards. That is not a point of order.Go ahead, hon member. [Interjections.]

The MINISTER OF TRADE AND INDUSTRY: No, Deputy Speaker, it is not a point of order, but I think I will explain it to the hon member. I said he was an oppressor and a tyrant. He was somebody who acted against the interests of the majority of the population of this country. Clearly, that was the case. But he was not a fool when he didn't spend money on education, because the needs of those who owned and controlled the economy at that time were to have large numbers of unskilled people, drawn into a migrant labour system. [Interjections.] That is what I meant.

Now, the point I am making is that even if we take a time when our economy was performing relatively well, just before the onset of the recession in 2009, our consumption-driven sectors were growing twice as fast as our productive sectors – that is mining, agriculture and manufacturing. What does all this say to us? It says to us that our future has got to be that we move up the value chain; that we industrialise and we reindustrialise our country.

That proposition is not just something that is now common cause in South Africa; it is common cause across the African continent. The leaders of the African continent are saying that future growth on the African continent depends on this continent industrialising. Why? There are some very good reasons. I will give just a couple of examples from a recent publication by KPMG, titled Africa Arisen: The Blue-Sky Continent 2014. KPMG tells us that Africa produces and exports $6 billion worth of coffee. But they go on to say that that coffee is processed, packaged and branded elsewhere and is sold for $100 billion. This means that $94 billion is earned outside the borders of Africa on the basis of products that are produced in Africa! The value chain is outside of our continent. The value-added part of it is located outside of our continent.

They give another example. Italy earns more income from the production of jewellery than South Africa does from the production and export of gold. We know that in our own agricultural commodities, even things in which there is very little actual real value addition outside, something like 60% of the value chain of table grapes is captured outside the borders of South Africa. What we need to do is to move up the value chain and industrialise. That is the common destination of the African continent. [Applause.]

Now, in the past, at the beginning of the administration ... Well, let me just pause and say the following to the hon Hill-Lewis. He is convinced that we are going into a recession, but if you look in today's paper, you will see that most commentators think there is only a 30% chance of us going into a recession. That means that they think there is a 70% chance that we won't. But we did go into a recession. We went into a recession at the beginning of the first term of President Zuma. That recession was definitely caused by external factors – by the worst global economic crisis at any time since the 1930s and it has continued to reverberate in this economy as an open trading economy. There is no question about that.

However, the President did not deny that the current problems are problems related to home-grown factors. He did not deny that. In fact, he highlighted two of the matters that needed urgent and serious attention on a short-term basis. Those were, firstly, addressing the issues in the mining industry - not just trying to bash heads together but actually trying to address some of the fundamental underlying issues arising from the migrant labour system; arising from inadequate sharing of the benefits from the resource rents of the platinum sector; addressing things like housing; a better income situation for the workers. That was what the President said. That is part of the implementation of the Mining Accord.

The other thing the President did was to highlight for special, focused attention the production and implementation of an energy plan, because actually one of the biggest impediments to us transforming our economy is the lack of availability of an adequate supply of affordable energy in this country. Now, that is notwithstanding the fact that we have done some very, very important work. Medupi is the fourth largest power-station project in the world. It is not a small thing. It is not a small thing. And some of the biggest delays have been because the private contractors have not been able to deliver their side of the bargain in terms of the quality of boilers and the like. [Interjections.] Those have been the issues.

The point I want to make was that at the start of the last administration - in the context of the worst economic crisis since 1930, in which we lost one million jobs, 200 000 of those in manufacturing – we introduced and implemented a succession of industrial policy action plans. These were rolling plans, covering the financial year in question and the outer two years, introduced every year as action plans and tasks that have to be carried out by different entities within the government. Now, these included a domain of actions. They included mobilising financial support from public institutions to support manufacturing, learning the lessons of every other country that is industrialised - that private banking systems (and ours is no different, as we showed in the first Ipap) are providing more funding for consumption than they are for investing in the real economy. So we mobilised a set of public institutions, ramped up the work of the IDC, introduced a set of incentives and sought to try to extract more commitments for a higher quantum of the support programmes for manufacturing.

Secondly, we adopted a developmental strategic approach to tariff-setting, where tariff-setting was informed by the needs of industrial development.

Thirdly, we introduced localisation. We took the bold decision - against the vested interests of many from abroad - that we would, in fact, purchase, both as government and as parastatals, according to formulas introduced by designations from local-manufactured sources. We introduced these. We are now producing 1 000 railway locomotives in South Africa. As far as railway wagons and coaches are concerned, we are producing 2 500 of these in South Africa. We are now producing electricity transmission lines, oral solid dosage medicines in the public sector, clothing, workware in public institutions, foodstuffs and various others. We have seen that this localisation has actually contributed to the revival of a number of industries, and it is for this reason that we had agreed to the aspirational target, which was discussed with government, business and labour, of 75% local procurement. We are on target to reach that before the end of this term. [Applause.]

The other thing we did was to mobilise the range of other policy tools, including issues of standards, quality assurance, support for firms in terms of export promotion – all sorts of measures of that kind.

What do we think we achieved at the end of the last term? Well, we were quite modest in our assessment. We said that we believed that what we had demonstrated was that we had shown that industrial policy works where we are purposeful, where we are well informed, where we work with key players and where we implement effectively. We also said that we certainly averted the serious risk of further deindustrialisation that was staring us in the face as a result of the impact of the global economic crisis.

Thirdly, we have seen not just stabilisation but actual growth in some industrial subsectors. That is what we said. But we also said what we hadn't done yet, which was that we hadn't sufficiently transformed the character of the productive sectors, and therefore the aim and intention must be in this administration to actually raise the scale and the impact of our industrial policy.

What are the elements of that? Well, first of all, the infrastructure programme, led and co-ordinated by the Presidential Infrastructure Co-ordinating Commission, is a very, very important driver. The PICC has shown through this reorganisation of our infrastructure programme ... Under the PICC, as the President said, we spent R1 trillion on infrastructure – not budgeted for, not hoped for, but actually spent. That is more than double the previous record, and that was in the previous administration. That was more than double. The President said that in the next three years we would spend more than R800 billion. That means that we are on track to deliver a higher quantum of infrastructure spend in this administration.

Infrastructure is about providing the things we need: the ports, the rail, the energy generation, the social infrastructure. But this is also about using the infrastructure programme as a tool for industrial development. And here comes the localisation, the designations, the support programmes which we have to pursue and continue to pursue.

The second thing is we need to recognise that what we have to do with the mineral wealth that we have, particularly with the passing of the mineral products supercycle, is bite this bullet of beneficiation. We have to add value in this economy. Actually, we have done quite a bit of work on some of the important value chains. We passed, in the last Parliament, the Special Economic Zones Bill. But we said, let us not wait for the institutions of the special economic zones legislation to come into effect. Let us actually do some work to establish what potential SEZs are - and there are two SEZs that are based on the beneficiation of platinum. These would do jewellery, catalytic converters and, very excitingly and very importantly, fuel-cell technology around small power stations. [Applause.]

We have identified private-sector players in this country who are interested. We have identified technical support from abroad. We have identified potential foreign investors who are prepared to come here and actually develop fuel-cell technology in this country, based on a platinum SEZ. What do they need? They need reliable, available quantities of platinum at a sufficiently attractive discount price to support that activity. That is where beneficiation comes in.

Secondly, as was already mentioned, we were stuck in the past five years on the issue of iron and steel. We were stuck because there were court cases. Those court cases have run their course and we are now going to reconvene the task force on iron and steel with the intention of ensuring that a proportion of the iron ore that is produced in South Africa is made available at a discounted price to support steel manufacturers who are prepared to price that steel in the bottom quartile of world prices. [Applause.] That is an important piece of work that we have to do: beneficiation.

Thirdly, the President mentioned the African continent. He said we have a significant increase in investment by South African companies on the African continent. He pointed also to the fact that our exports to the African continent were increasing and those exports have a disproportionate quantum of value-added priorities. The African continent is important to us. But, as I have said already, the African continent is also industrialising. They are not just going to be our market; they are also going to be industrialising. So this is a very important piece of work.

How do we locate ourselves and relocate ourselves in the African continent? I think there are a number of pointers. Nigeria is starting a motor vehicle sector. If you read the press, you might have thought that the motor vehicle industry was about to relocate from South Africa to Nigeria. That would not be a better bet. But they are going to start a motor vehicle industry. They have been learning from us about our motor vehicle programme. The quid pro quo we are seeking from them is that the components that will go into the semi-knockdown kits that they will assemble in Nigeria will be manufactured in South Africa. That is what we are looking at. [Applause.]

Another example: I went with the President to Ghana and participated in the opening of a factory, which is supported by South African investors. It is producing grinding media for the West African mining industry. At the moment, that is imported from South Africa. Now it will be manufactured in Ghana. But the inputs into that will come from South Africa. We need to move up the value chain. There are many, many examples of that, and we need to find our place on the African continent.

Then, I think, what we need to do is what we said in the Ipap: deep-dive/granular knowledge development around leading companies that can take our industrial policy further forward. We want to deliver a higher quantum of support to leading companies that can take us a bigger leap forward, and against that higher quantum we want a greater return in terms of at least three things. The first is building industrial capacity; the second is jobs; and the third is co-operating to create black industrialists so that the industrial sector actually starts to reflect the demographics of our country. [Applause.]

Those are the things that we are wanting to do in terms of industrial policy. But there is also ... I think that sometimes when people say that the President didn't say that, they don't understand what this is about. Minister Radebe explained it. We have produced and we are in the process of adopting a medium-term strategic framework for the life of this government. That covers everything that everybody has mentioned but that the President didn't say. In a short speech the President can only highlight a few points. It's not that they are not there; it's just that he didn't mention them in the time he had available. [Applause.]

That medium-term strategic framework will include us improving our work on the co-ordination of activities within the productive sectors. We need to go back to mining and back to agriculture and integrate them into a framework that is also feeding into the Industrial Policy Action Plan. The President mentioned agriculture and the million jobs that we can create in agriculture. Through the land reform programme that has been set out by the Minister of Rural Development and Land Reform – not the one, I think, that is dependent on the offer from our friends across from there – we can achieve land reform and create and establish small-scale farmers in this country. We can create employment and also add to food security.

One other thing is that the relationship between agriculture and agro-processing is something that can drive the agricultural sector further forward. There are many agro-processing investments in South Africa in which the percentage of local agricultural inputs is less than 50%. We need to raise that to much higher levels. I think there is work going on in that regard.

The other thing is that we have launched and rolled out small-scale mills, which are available to be established. They could be run by co-operatives, for that matter, in small towns. They would provide a facility much closer to where small farmers are located and provide a product that is available at a cheaper price in local communities.

The mineral beneficiation action plan has been identified as a distinct piece of work; a mineral beneficiation action plan eventually to be integrated into the Ipap. That will take us into the definitions of the different mineral-value chains, the work that needs to be done and the toolbox instruments that we need to apply. Now, I think that we are on a journey. We are on a journey where these radical transformations are absolutely critical and essential.

The DEPUTY SPEAKER: Hon member, please wrap up. [Interjections.]

The MINISTER OF TRADE AND INDUSTRY: Chair, I will wrap up – thank you very much. Well, I was simply going to say that I read a piece about the hon Maimane describing me as a hollow man. [Interjections.] I think he is not the only hollow man today; I think there have been many hollow men. We don't have to listen and bang on empty drums. We have a piece of work we have to do. We know where we are going. We need to get on and implement it. Thank you very much. [Applause.]

The DEPUTY SPEAKER: Hon members, I just want to draw your attention to the fact that some of the members who spoke here did not use all their time, and they have been negotiating with the Table to add their time to that of other members. So, please don't chair when there is a Chair present. I just want to alert you to that. The hon Hill-Lewis had one more minute, because he benefited from one of his party members who didn't use all their time. This is why we gave the hon Davies the seconds he needed to conclude his speech. Don't chair when you are not in the chair yet. Your time is coming. [Applause.]

Debate interrupted.

The Deputy Speaker of the National Assembly adjourned the Joint Sitting at 19:25.


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