Hansard: NA: Unrevised Hansard
House: National Assembly
Date of Meeting: 22 Feb 2017
Summary
No summary available.
Minutes
UNREVISED HANSARD
22 FEBRUARY 2017
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WEDNESDAY, 22 FEBRUARY 2017
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PROCEEDINGS OF THE NATIONAL ASSEMBLY
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The House met at 14:03
The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col
000.
APPROPRIATION BILL
(Introduction)
DIVISION OF REVENUE BILL
The SPEAKER: The Secretary will read the Order of the Day
... [Interjections.]
... siyabulela tata, siyabulela. Sicela ukuqhubeka nomsebenzi weNdlu. [... thank you tata. We would like to continue with the business of the House.]
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The MINISTER OF FINANCE: Hon Speaker, Mr President, Mr Deputy President, Cabinet colleagues and the Deputy Ministers, the Governor of the Reserve Bank and Deputy Governor of the Reserve Bank, MECs for Finance and fellow South Africans, sanibonani, molweni, goeie middag, thobela, dumelang, avuxeni, ndi masiari, lotshani, good afternoon.
Before I proceed, on your behalf and with your consent, I wish to recognise two schools that have been invited by yourselves for their spectacular pass rates. The first one looks very suspicious because it is from Cala, and I see the secretary-general in the audience there ... and this senior secondary school had a 92% matric pass rate in 2015 and in 2016 it received the MEC award ... and there is an individual amongst them, N Athenkosi, who received the MEC award and is currently studying at the University of Cape Town.
Masibambisane high school from Delft, in Cape Town. Can you congratulate them for being here, please? [Applause.]
Hon Speaker, I have the privilege to present our government’s Budget for the fiscal year 2017-18, and the framework for the next three years. I am mindful of the context of our own transformation challenges and the
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stresses in the global environment, which reminds me of
Oliver Tambo’s unwavering vision:
We seek to create a united, democratic and nonracial
society. We have a vision of South Africa in which
black and white shall live and work together as equals
in conditions of peace and prosperity. We seek to
remake our part of the world into a corner of the globe
of which all of humanity can be proud.
In the words of the Freedom Charter, “South Africa
belongs to all who live in it.” In drafting our
Constitution, this was a central foundational principle,
and the values of freedom, dignity and equality are
embedded in our law and our polity. This is also why our
Constitution requires that all who live in our country
should have access to housing, medical care, social
security, water and education.
There should be a progressive realisation of access to
tertiary education and other elements in a comprehensive
set of social entitlements. Wealth and economic
opportunities must be equitably shared. These commitments
impose an obligation on government but also on other role
players and stakeholders in society.
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We are familiar with some of these realities but let us
state the reality of life in South Africa. Wealth remains
highly concentrated. 95% of wealth is in the hands of 10%
of the population. 35% of the labour force are unemployed
or have given up hope of finding work. Despite our
progress in education, over half of all children in Grade
5 cannot yet read adequately in any language. More than
half of all school-leavers each year enter the labour
market without a senior certificate pass. 75% of these
will still be unemployed five years later.
Our towns and cities remain divided spatially and
otherwise and poverty is concentrated in townships,
informal settlements and rural areas. Our growth has been
too slow – just 1% a year in real per capita terms over
the past 25 years, well below that of countries such as
Brazil, Turkey, Indonesia, India or China.
These are our realities. These are the realities that we
must seek to transform and change. They mirror the
stresses of poverty and vulnerability in many developing
countries, and the inequality between rich and poor
throughout the world. Even in the developed world, there
are fault lines and high levels of uncertainty today citizens lack of trust in elites and that includes all of
us; growing inequality in societies both developed and
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developing; globalisation is benefitting only a few, the
top 1% or 10%; stagnant and falling incomes are the fate
of the middle classes in many parts of the world.
These, among other factors, are also driving a case for
radical transformation of economic models, and a call for
inclusive growth both here and elsewhere in the world.
The President has rightly emphasised the requirements for
transformation and the change in South Africa are wideranging. Just give me a minute, er ... laws and
regulations, policies and their implementation,
initiatives of national, provincial and local government,
our black economic empowerment charters and the
engagement of business, organised labour and civil
society partners are all critical levers of change, and
so is our Budget.
This is not a transformation to be achieved through
conquest, conflict or extortion, as in our past. We do
not seek to reproduce the racial divides and racial
domination that was the hallmark of apartheid
nationalism.
Our transformation will be built through economic
participation, partnerships and mobilisation of all our
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capacities. It is a transformation that must unite, not
divide South Africans. This is the task entrusted to us
by our leaders, such as Oliver Tambo, Helen Josephs,
Walter Sisulu and Nelson Mandela.
We find ourselves at a conjuncture which requires the
wisdom of our elders to help us make the right choices
and keep the trust of our citizens. Madam Speaker,
today’s Budget message is that we are once again at a
crossroads. Tough choices have to be made to achieve the
development outcomes we seek. As I pointed out, our
economic growth is slow, unemployment is far too high and
many businesses and families are under stress.
We face an uncertain and complex environment; at the same
time we face immense transformation challenges. We must
overcome the inequalities and divisions of our society.
All South Africans must share in a prosperous future. We
have a plan for a more inclusive and shared economy. Its
implementation requires greater urgency and effective
collaboration amongst all social partners.
Change is difficult, and often contested. In these tough
times we draw strength from the resilience and the
diverse capabilities of our people, our business sector,
our trade unions and our social formations.
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The key features of the framework for the 2017 Budget
include the following: Expenditure is within the envelope
projected in last year’s budget and at the Medium Term
Budget Policy Statement, MTPBS. An additional R28 billion
will be raised in taxes which you will hear in a moment
how it affects you. The budget deficit for 2017-18 will
be 3,1% of GDP, in line with our fiscal consolidation
commitments. Government debt will stabilise at about 48%
of GDP over the next three years. Redistribution in
support of education services and municipal functions
remains the central thrust of our spending programmes.
Government’s wage bill has stabilised. Procurement
reforms continue to improve the effectiveness of public
spending and opening opportunities for small business
participation. Our state-owned companies and finance
institutions play a substantial role in infrastructure
investing and financing development. Their borrowing
requirements are taken into account in the overall fiscal
framework.
As in the past years, the Budget Review and the Estimates
of national Expenditure provide extensive details of
developments in the economy, our fiscal and budget plans
and the programmes and activities of government
departments and public entities.
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Madam Speaker, allow me to comment briefly on the
international economic outlook. After several years of
tentative economic growth, there are signs that a more
sustainable recovery might be under way. Growth in the
United States and Europe is steady, although at low
levels. India and China remain comparatively buoyant, and
economies such as Russia and Brazil are set to recover
from their respective recessions.
The International Monetary Fund, IMF, projects that the
world economy will grow by 3,4% in 2017 and 3,5% in 2018.
It is still a very modest growth. Many countries face the
challenge of ensuring that as growth picks up; its
benefits accrue to all in society. The 2008 financial
crisis and its aftermath exposed deep fault lines in the
world economy and in the distribution of income.
Economic recovery has been slow. In several countries
affected by unrest or war, there has been great hardship
and dislocation of people as we all know. The impact of
trends in trade, technology and commodity markets has
been uneven across the world. These forces have
heightened social and political pressures for change.
Global strains manifest in various ways, including the
rise of strident economic nationalism and protectionist
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policies. Government and business leaders throughout the
world have had to reflect on the deficit of trust and
loss of social solidarity in their societies. Policies
and programmes that strengthen economic inclusion are
being prioritised everywhere in the world. In the words
of Pope Francis, I quote:
Reforming the social structures which perpetuate
poverty and the exclusion of the poor first requires a
conversion of mind and heart.
We require a similar conversion of heart and mind. We
therefore, welcome Germany’s commitment to highlighting
Africa and its infrastructure financing requirements as a
priority of its term as chair of the G20 countries.
On the question of South Africa’s economy, our
expectation at this stage is that GDP growth will
increase from 0,5% in the past year to 1,3% in 2017, and
will continue to improve moderately over the medium-term.
Clearly, these numbers are too low and highly inadequate.
The services sector was the main contributor to growth in
2016, bringing nearly 120 000 new work opportunities to
the table. Mining continued to underperform while
manufacturing output was supported by buoyant sales in
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petrochemicals, food and beverages and motor vehicles.
Mining and manufacturing employment declined by 80 000
jobs in 2016.
Weak business confidence and low levels of profitability
weighed on investment across all sectors. Though the
policy interest rate has increased by two percentage
points since 2014, inflation ended the year above the
target. The food prices continue to reflect the impact on
agriculture of poor rainfall.
Lower growth in our trading partners in Africa and
elsewhere has contributed to sluggish export performance.
We expect somewhat higher growth in the coming year on
the strength of a number of favourable trends that are
emerging: commodity prices have rebounded and hopefully
they stay that way; the exchange rate has recovered from
its rapid depreciation last year, which bodes well for
capital flows, inflation and business and consumer
confidence; drought conditions have abated in most of the
country; production stoppages associated with industrial
disputes have been comparatively low; and electricity
supply has improved, allowing new connections and
industrial demand to be accommodated. But the projected
rate of growth is not sufficient to reduce unemployment
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or impact significantly on poverty and inequality. It
falls well short of our NDP targets.
Madam Speaker, we know what to do to get ourselves out of
the present low growth trap.
... ditau ge di šomišana di ka bolaya nare. [...lions
that work as a team can bring down a buffalo.]
... we have to be lions, hon members, with all types of
t-shirts on to bring the buffalo down. In order to boost
investment in the short term, there are several specific
imperatives: finalising legislation relating to mining
development and land redistribution; implementing the
transition from analogue to digital television, which
will release spectrum for broadband services, which
Minister Cele, is anxiously waiting for; continuing our
independent power producer programme, both in renewables
and to take advantage of gas investment opportunities;
further strengthening of economic regulatory functions
and streamlining investment approval processes, that is
well on its way; production-friendly, industrial
relations and prompt resolution of disputes that the
Deputy President has been working on; an enabling
environment for small enterprises and support through
leveraging both public and private sector procurement
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budgets work that Minister Zulu is doing; focused support
on labour-intensive sectors of the economy, including
agriculture, agro-processing and tourism-related
services; strengthening regional ties and trade links;
and safeguarding South Africa’s investment grade credit
rating, which will be an issue once again this year.
The 2017 budget allocates funds over the MTEF period to
support economic growth in various programmes:
R3,9 billion for small, medium and micro enterprises and
co-operatives; R4,2 billion for industrial infrastructure
in special economic zones and industrial parks;
R1,9 billion for broadband implementation; R3,9 billion
for the Council for Scientific and Industrial Research,
CSIR; an additional R494 million for tourism promotion;
an additional R266 million to support the aquaculture
sector and realise the goals of the Oceans Economy and
Operation Phakisa; and spending on agriculture, rural
development and land reform amounting to nearly
R30 billion by 2019-20.
Effective implementation of these and other programmes
and initiatives will set us on a higher growth trajectory
than currently projected. Progress in engagements between
government, the business sector, trade unions and social
partners is generally imperative.
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To achieve sustained higher growth, there are also more
fundamental and more radical transformation measures that
are needed. These relate, in particular, to the way in
which economic power is distributed in our society. The
relationships between labour and capital, rich and poor,
black and white, men and women, town and township, urban
and rural, still reflect the entrenched legacy of
colonialism and apartheid. Wealth is produced and
allocated along lines that remain fundamentally unjust.
The ownership of assets and the distribution of income is
captured by a minority of the population – a situation
that is morally wrong and economically unsustainable. We
agree with the President that a new perspective on
economic transformation is required. We suggest that the
principles that should guide our agenda for
transformation include the following: the litmus test of
our programmes must be what they do to create jobs,
eliminate poverty and narrow the inequality gap;
transformation must be mass-based, benefiting the most
disadvantaged South Africans through the creation of new
assets, capabilities and opportunities to build real
livelihoods; we have to mobilise both private and public
investment in social and economic infrastructure, new
technologies and new activities that help build a modern
and diversified economy; we must continue to confront
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cartels and collusion robustly and provide new
opportunities for access to markets; transformation must
reshape our cities and the spatial arrangements we live
in and build linkages across rural and urban landscapes
where fragmentation and separation characterised past
patterns; transformation must achieve a more balanced
structure of ownership and control in our economy;
transformation should also build on and strengthen
democracy, entrench open transparent governance and the
rule of law; transformation must build self-reliance of
South Africans and reject the dependence on debt and
protect our fiscal sovereignty, which is quiet crucial;
and must also result in an economy that belongs to all,
black and white, where the legacy of racial domination is
no longer visible.
In 1969 the ANC resolved that, I quote:
Our nationalism must not be confused with chauvinism
or narrow nationalism of a previous epoch. It must not
be confused with the classical drive by an elitist
group among the oppressed people to gain ascendancy so
that they can replace the oppressor in the
exploitation of the masses.
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Transformation must unleash growth, it must establish a
new economic direction, mobilise investment, empower the
masses and create new resources for social change. We
still have a long way to go, but we are very aware of
what we have to do.
Let me turn to fiscal policy and the budget framework
that we present today. The 2017 Budget reflects a balance
between maintaining our spending commitments, and
ensuring long-term health of the public finances, and
that’s a responsibility that the public has given us.
Slow economic growth has held us back and so decisive
steps are needed to strengthen confidence, investment and
growth. Acting too quickly to reduce the deficit would
harm service delivery, delay economic recovery, and
compromise tax revenue collection. But to ignore our
fiscal targets would result in interest rate hikes,
unsustainable commitments and credit rating downgrades.
This is a scenario in which short-term gains would
quickly give way to financial stress, capital flight and
cutbacks in service delivery. To ensure a balanced and
sustainable recovery, we indicated in the MTBPS that we
would raise an additional R28 billion in tax revenues. We
also need to reduce spending by a total of R26 billion
over the next two years. The proposed expenditure for
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2017-18 totals R1,56 trillion. Interest on debt amounts
to R169 billion, that’s the interest that we are paying
on R2,2 trillion worth of debt presently and that begins
to push out the kind of expenditure we want to undertake
both on social services and economic support. Projected
revenue in this financial year or the coming financial
year amounts to R1,4 trillion. The balance of
R149 billion, or 3,1% of GDP, is the amount we need to
borrow in 2017-18. Let me repeat that; R149 billion needs
to be borrowed in the year 2017-18.
Government debt now stands at R2,2 trillion, or about 50%
of GDP. Interest payments are a rising share of
expenditure as I have just indicated. By acting now to
stabilise debt, we will ensure that future generations
will not pay for today's expenses, some 20 or 30 years
from now. Over the medium-term, expenditure on public
services will continue to grow moderately above
inflation.
A substantial additional allocation to higher education
is again proposed, adding R5 billion to the R32 billion
previously announced. [Applause.] I thought Minister
Nzimande will jump up a little bit. [Laughter.] We will
[Interjections.] ... of course he has a partner in the
President these days. [Laughter.] We will continue to
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safeguard expenditure that protects poor households. It
is only right that if households and firms face tough
choices in balancing their income and expenses, the same
disciplines must be applied in public expenditure as
well, in other words that which we expect the public to
do, and we in government must also do. [Applause.]
Citizens must rightly demand accountability to ensure
public funds are used for their intended purposes.
[Applause.]
Hon Speaker, I have received a variety of tips, not in
the form of money from members of the public. Ms Phori
wrote and I quote:
I still wonder why we do not have tax as a subject in
school. Perhaps the government should educate people
from a young age about tax, so that they will have an
understanding that there is no government without
taxpayers. [Applause.]
Quite right, Ms Phori! So, having said that, we will
spend R1,56 trillion and that we will borrow a
R149 billion, where does the rest of the money come from?
It comes from taxes. Where does the R28 billion increases
in taxes come from?
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So, for many years we have enjoyed the benefit of tax
revenue collections outstripping economic growth. This
contributed to our capacity to expand public service
delivery. This year, revenue has lagged behind the
economy, leading to a R30 billion shortfall by comparison
with the Budget Estimate a year ago. The revenue
shortfall is mainly in personal income tax, value-added
tax and customs duties. This reflects on the one hand,
slower growth in wages, employment and bonus payouts last
year, and other factors as well.
Our current expectation is that total tax revenue for
2016-17 as I indicated earlier, will be R1,14 trillion,
which is an increase of 7% on the previous year. The tax
proposals this year will raise an additional R28 billion,
by comparison with Revenue Estimates based on full
adjustment of personal income tax and excise duties for
inflation. The main tax proposals are: a new top personal
income tax rate of 45% for those with taxable incomes
above R1,5 million - I thought you will clap for that,
because this is what we call progressive taxation.
[Applause.] Those who earn more, pay more [Applause.]; an
increase in the dividend withholding tax rate from 15% to
20%; limited bracket creep relief, increasing the tax
free threshold from R75 000 to R75 750; an increase of
30c per litre in the general fuel levy and 9c per litre
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in the road accident fund levy; increases ... this is the
most important part for some of you, ... increases in the
excise duties for alcohol and tobacco, of between 6% and
10%.
Relief will be provided in the affordable housing market
and this is an important measure we are taking to support
people in the middle income groups, through an increase
in the threshold above which transfer duty is paid or put
it the other way, in the past if you bought a house for
R750 000 or less, no transfer duty was paid. As the new
tax year starts, if you buy a house for R900 000 and
less, no transfer duty is to be paid. I have been asked
by Minister Sisulu to communicate that property owners
must endeavour to retain ownership of their assets,
particularly at the lower income groups for much longer
than they do in order that over time, those assets will
appreciate and help in the creation of wealth. It’s a
message we need to send out to all South Africans.
[Applause.]
The annual allowance for tax-free savings accounts will
be increased to R33 000 from R30 000. The medical tax
credit will be increased in line with inflation this
year. It should be noted that consideration is being
given to possible reductions in this subsidy in future,
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as part of the financing framework for National Health
Insurance, NHI.
Further consultations are currently taking place on the
other matter that concerns some of you on the tax on
sugary beverages. Arising from these discussions, and
working closely with the Department of Health, the
proposed design has been revised to include both
intrinsic and added sugars. The tax will be implemented
later this year once details are finalised and the
legislation is passed by you. The proposed carbon tax and
its date of implementation will be considered later this
year by Parliament.
On the question of combating tax avoidance or ducking
taxes if you put it in simple language, multinational
corporations continue to use inconsistencies in global
tax rules to their advantage and to avoid tax
liabilities. In fact you have many multinational
corporations that are residing in 150 or 200 countries
and end up paying very little or no tax to any country.
South Africa intends to sign a multilateral instrument
this year, which will assist in the updating of treaties
and will reduce the scope for aggressive tax avoidance
activities. Applications to the Special Voluntary
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Disclosure Programme have once again been initiated. The
Sars has already received disclosures of R3,8 billion in
foreign assets, which will yield revenue of about
R600 million. If any of you have friends or family that
have assets outside that they haven’t disclosed, here is
an opportunity to come forward to the Sars and declare
their monies.
Please note the programme will be open until the end of
August this year. The automatic exchange of information
between tax authorities will come into operation in
September this year. This is a very important
development; where in the past tax authorities of
different countries have the option to either give
information or not give information. Part of the
international campaign against base erosion and profit
shifting is that automatically countries once requested
must provide information on a taxpayer that is operating
in another jurisdiction whilst being investigated by, for
example, our jurisdiction. That is a very important
measure. [Applause.]
Multinational companies will be required to file further
information with the Sars on cross-border activities from
the end of the year. We will continue to work actively
with the international tax community and within
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government to modernise customs administration, combat
cross-border revenue leakages, and money laundering and
harmful tax practices.
An efficient and trusted tax administration is one of
South Africa's institutional strengths. The Sars has
played an integral role in building the democratic state
by ensuring that expected levels of revenue are available
to fund spending programmes. The Sars must continue to
develop the skills and capacity needed to enforce
legislation and strengthen its efforts to curb tax
avoidance and evasion, and address transfer pricing – a
component of illicit financial flows.
Madam Speaker, I requested the Davis Tax Committee last
year to advise on an appropriate governance and
accountability model for the Sars. This was last done in
1994 by the Katz Commission. Some of you have been around
since then, so, you will remember. In the context of the
envisaged Border Management Agency, BMA, customs and
excise administration has come under review. These are
integral functions of our revenue system and the Davis
Committee has advised that it would be imprudent to
fragment customs administration and customs duty
collections. I agree with this, particularly in the light
of the Sars’s ongoing customs modernization programme,
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which is critical to both our revenue and trade policy
imperatives. I want to express my appreciation to the
Deputy President and Minister Gigaba for the ongoing
engagement on this matter. Continued strengthening of the
capacity of the Sars and enhancing its relationships with
taxpayers is vital for our fiscal health.
We will continue to call upon Judge Davis and the tax
committee for advice on how best to ensure that the Sars
remains a robust and effective collection agency. On the
division of revenue, which is what is required of us by
our Constitution; our Constitution requires an equitable
division of revenue between the spheres of government,
and sets out the criteria that govern this division. The
funds available after providing for debt service costs
and a contingency reserve increased by 6,9% to
R1,24 trillion next year, and is expected to rise to
R1,43 trillion in 2019-20.
Over the next three years, 47,5% of available funds are
allocated to national government and departments; 43,4%
to provinces; and 9,1% to local government.
The division of revenue involves a substantial
redistribution of resources from the wealthiest areas in
our country – where most of our taxes are raised – to
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lower-income communities and households. The allocations
to predominantly rural municipalities are twice as large
per household, than those to metropolitan councils. The
redistribution of resources is an enabling foundation for
a broader transformation of services and opportunities in
our cities, towns and rural areas. Development also
requires effective management of public services and
promotion of enterprises and income-generating
activities.
As far as provincial financial management is concerned,
let me share with you that in the context of our
constrained fiscal environment, provinces have already
made progress in reducing spending on noncore goods and
services and in controlling personnel costs. They need to
be congratulated for their work, which means national
departments have to catch up with them. [Applause.]
Spending on non-essential goods and services fell in real
terms by 7,1% in 2014-15, 6,1% in 2015-16 and is
anticipated to decline by 4,5% annually over the mediumterm. The proportion of provincial spending on personnel
has declined to just fewer than 60% in 2016-17, freeing
up more resources to invest in services. Provinces have
also ... its okay you can do it, wake up your neighbours.
[Applause.] Provinces have also put their public entities
under review, to eliminate duplication of activities and
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ensure effective governance and clear development
mandates.
Three new conditional grants will take effect in 2017-18.
They will expand access to early childhood development
and improve facilities, provide for increased employment
of social workers and improve opportunities for learners
with profound disabilities. [Applause.] The AuditorGeneral has called for stronger leadership within
provinces to remedy financial management challenges.
Better cash management is needed to ensure suppliers are
paid on time. Improved oversight is needed to curb
unauthorized expenditure. There must be adherence to
procurement rules to limit irregular expenditure.
As far as municipalities are concerned, government
continues to invest in improving the financial capability
of municipalities. In the period ahead, National Treasury
and provincial treasuries have agreed to focus their
efforts on four hopefully game changers: firstly, the new
Municipal Standard Chart of Accounts, which will be
implemented from 1 July 2017, contributing to greater
transparency and consistency of municipal finances;
secondly, targeted supply chain management interventions
to achieve cost savings and combat fraud; thirdly,
enhanced revenue management, including appropriate
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tariff-setting, regular billing and effective collection
systems, which is at the heart of good financial
management at the municipal level; and lastly, improved
asset management, including adherence to 8% of the value
of assets being spent on their maintenance. In South
Africa, we have this disease where we want to constantly
put in new infrastructure while not spending enough money
to maintain existing infrastructure. [Applause.] If we
make progress in local financial management, we will
transform the lives of millions of people across the
country.
Now, what is the relationship between the Budget and the
transformation that we require in our economy and
society? Madam Speaker, the Budget gives effect to our
transformation action agenda by financing government
programmes which: ensure that many more people live in
dignity every single year; radically improve access to
services and economic participation across all racial
lines; energise growth and create jobs; increase
investment and development – at national, provincial and
local level – mobilising resources across government,
business and other sectors of our society.
A growing economy makes more rapid transformation
possible, but it is the fiscal system that is the most
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direct vehicle for redistribution and inclusivity. The
South African budget finances, the construction of houses
and schools, the education of young people, care for the
elderly and incomes of the most vulnerable in our
society. About two-thirds of the Budget is dedicated to
realising social rights in South Africa, which is a huge
achievement for all of us.
We have programmes that build infrastructure, support new
businesses, empower small farmers, develop human
capabilities and incentivise job creation. The Budget is
highly redistributive to the poor and working families.
The Budget alone cannot achieve our transformation goals.
We need a powerful combination of effective and targeted
government delivery of economic programmes; an energetic
coalition with labour, business and civil society, which
acts together in a synergistic way; a consensus amongst
all of our social partners on a transformation programme
– with each of us clear about the contribution and
sacrifices we have to make to ensure optimal inclusivity
of all of our people; and a commitment to eradicate gross
inequality and share the benefits of growth and
restructuring of the economy across all of our people.
Government can be an important catalyst. But it cannot
carry all of the responsibility for ensuring that every
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citizen experiences a palpable and real change in wealth,
dignity and wellbeing. This has to be our collective
choice as South Africans.
How do we work towards a transformation action agenda?
Transformation is in part about overcoming the legacy of
exclusion and inequality of the past, but it is also
about restructuring the economy to take advantage of new
technologies, new forms market access and investment
opportunities. It is about investing in social
capabilities, through better outcomes in health,
education and skills development, and through inclusive
and responsive institutions.
Let me say clearly and emphatically: sound public
finances, the health of our financial institutions,
investment-grade credit ratings and our competitive
public procurement processes are all valued elements in
the sustainability and integrity of our transformation
path. In other words, without doing the right things
financially, we can’t go about implementing all the
ambitions and programmes we have – it just won’t work.
Also; are the clarity of vision and the details of
sectoral priorities and programmes set out in the NDP.
Radical transformation and inclusive growth touch many
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aspects of social organization and economic activity.
Renewal and wider participation have to be opened up
across as broad a range of industries and social
formations as possible. The portfolios of every Member of
the Cabinet, every provincial MECs and every member of
mayoral committees and indeed, all councillors are
involved, while responsibilities arise in business, every
NGO and every volunteer association in our communities.
We need to see progress, rapidly. There is growing
impatience and ferment amongst our people. Can we channel
this energy into constructive activism and productive
collaboration? It is the question we have to answer.
Allow me to emphasise five critical priorities in which
government is committed to work with the private sector
and other social partners to propel inclusive growth:
firstly, improved education is a central priority, and
particularly the quality of basic literacy and numeracy
achieved in the first phase of schooling. We must
increase funding for proven interventions in this regard.
Secondly, reform of technical and vocational education
and training programmes is vital, so that they
effectively meet occupational and industrial needs of our
economy. We must strengthen collaboration between
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employers and TVET colleges as Minister Nzimande will
ask.
Thirdly, we must accelerate development of our cities,
housing investment, improved public transport, urban
enterprise and industrial development.
Fourthly, South Africa’s integration and linkages with
its regional neighbours offers significant opportunities
for enterprise growth, agricultural development and new
industrialists and industries.
And lastly, reform of domestic market structures,
promotion of competition, deconcentration of monopolised
industries – public and private, and greater private
sector participation in sectors that may be currently
dominated by public enterprises, will all benefit us at
the end of the day - these are structural reforms that
will bring opportunities for business development,
modernisation and a more balanced distribution of wealth
and opportunities for all of our people.
With regard to market concentration, I need to commend
the work of the competition authorities under Minister
Patel’s leadership. These are difficult regulatory issues
that we have witnessed recently, particularly where the
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activities in question involve large institutions
operating in internationally integrated and complex
markets such as the financial markets. In the year ahead
the Department of Economic Development will finalise
establishment of the Tirisano Fund, to be financed from
the construction sector settlement. It will boost much
needed skills among black South Africans and support
emerging enterprises in the construction sector.
[Applause.] It’s just water, alcohol is too expensive
now. [Laughter.]
An initial amount of R117 million is earmarked for the
Adjustments Appropriation this year. If we transform
competitive markets effectively, we will see more rapid
growth. If we achieve faster growth, we will see greater
transformation, enterprise development and greater
participation in the economy.
As far as the economic infrastructure and investment is
concerned, the reform of state-owned companies is an
especially important part of the restructuring and
strengthening of our economy. State-owned companies are
governed by a strong legal framework, and Cabinet has
endorsed a series of measures to reinforce and clarify
governance and accountability and clarify their
development mandates. This imposes substantial
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obligations and responsibilities on boards and senior
managers in these companies. We expect the highest
standards of ethical leadership and understanding. With a
combined asset base of R1,2 trillion, the SOCs are wellplaced to partner with private sector investors in
growing the productive capacity and infrastructure of our
economy. But they must be financially strong, governance
must be sound, and boards and executives must have the
necessary competencies to run complex business
enterprises.
Eskom and Transnet have especially large responsibilities
as dominant suppliers in major network industries. Their
investment programmes are important foundations for more
rapid economic growth. The SA Post Office is
consolidating its mail services and expanding the role of
the Postbank, which will soon reach new levels of
formality. PRASA is in the third year of its rolling
stock fleet renewal programme. The Industrial Development
Corporation, IDC, the Land Bank and the Development Bank
of Southern Africa, DBSA are financially sound and are
steadily expanding their financing of industry,
agriculture and municipal infrastructure.
Last week I met members of the board of South African
Airways to discuss its turnaround plans. I am pleased to
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report ... [Interjections.] ... no, listen. I am pleased
to report that the challenges are well understood amongst
the board, and the advisory work that is in progress has
clarified the way forward. We have also held constructive
discussions with the new leadership of the Post Office.
During the next few months, proposals for putting the
capital structure of SAA and the Post Office on a sound
footing will need to be agreed upon. The capital
injection will be appropriated in the Adjustment Budget
in October. We will finance this in a deficit neutral
way.
Hon members, the Budget continues to prioritise both
national and provincial economic infrastructure
requirements. The Provincial Roads Maintenance Grant is
allocated R10,8 billion in 2017-18, taking into account
the increase in road traffic volumes. SANRAL receives
R15,4 billion over the period ahead for strengthening and
maintenance of the national road network, which now
stands at almost 22 000 kilometres. The Department of
Telecommunications and Postal Services receives almost
R2 billion over the medium-term to invest in high-speed
internet connections in public buildings and schools in
eight NHI pilot districts. The Passenger Rail Agency of
South Africa continues to implement its modernisation and
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rolling stock renewal programme. Over the medium-term,
R16,7 billion is allocated for 70 new train-sets as they
call it for Metrorail.
The development and operation of integrated public
transport networks, funded through the Public Transport
Network Grant receives R6,2 billion in 2017-18. To
support higher density housing, subsidies for social
housing have been rationalised and R600 million over the
medium-term is reprioritised to the Social Housing
Regulatory Authority, SHRA, for investment in rental
housing units, madam Sisulu.
As far as city development, human settlements and
municipal infrastructure is concerned, sustainable
communities require strengthened intergovernmental cooperation between national government, provinces and
municipalities. Improved alignment in the delivery of
services such as housing, water, sanitation,
electrification and public transport is central to
achieving the objectives set out in the Integrated Urban
Development Framework. R18,4 billion over the medium-term
is allocated to the Regional Bulk Infrastructure Grant
and R12,5 billion to the Water Services Infrastructure
Grant. These allocations continue to prioritise water
provision in the 27 most impoverished district
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municipalities. R1 billion is added to the local
government equitable share in 2018-19, in view of rising
household numbers and infrastructure maintenance
requirements.
Last year, I reported on the progress being made by our
metropolitan municipalities in reversing the spatial
legacy of apartheid, through targeted investment in high
density corridors linking townships back into our cities.
The spatial transformation is a massive challenge
involving land acquisition and development,
infrastructure and transport services, housing and
industrial and enterprise support. Much of this depends
on collaboration between government and the private
sector. We will continue to work with our cities to
improve the safety and reliability of public transport
services.
Commuter rail currently provides for over 20% of all
passengers carried in the cities. The Budget provides
resources to subsidise 457 million rail passenger trips
next year, as well as ongoing support to upgrade rolling
stock and improve signalling systems.
All our metropolitan municipalities are undertaking a
portfolio of catalytic, integrated urban development
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projects that will lead the way to reshaping our cities.
Just to give you a fewer examples, in eThekwini, the
Cornubia Mixed Development node will yield 25 000 housing
units, while over R13 billion in private sector
investment in the nearby Dube Trade Port has been
identified. A R30 billion inner city regeneration
programme is under way. In Ekurhuleni, development along
the corridor linking Tembisa to Kempton Park has been
prioritised. In Cape Town, it has adopted a transitoriented development strategy including mixed-use
development of the Bellville Transport Interchange,
upgrade of the Phillipi East Station Precinct and the
redevelopment of the Athlone Power Station. In Mangaung,
the airport development node is under construction and
8 500 affordable housing units will be built in and
around the inner city of Bloemfontein. In Johannesburg,
there is further progress with the “corridors of freedom”
linking Soweto, Alexandra, Sandton and the CBD. This
includes the new bridges that can be seen along the M1.
We have also seen substantial investment in township
precincts in response to the neighbourhood development
partnership grant. 190 projects have been completed and a
further 55 are in construction. In the Joubertina/Alabama
hub in Matlosana, for example, an NDP investment in
transport and health facilities has been accompanied by
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commercial investment commitments of about R155 million.
In the Solomon Mahlangu node in Tshwane, which serves
over 500 000 people, a R1 billion public investment in
roads, parks and trading facilities is expected to
leverage R4 billion in private investment. These are all
excellent examples of public private co-operation and
synergies being developed.
Encouraging investment ... those cities are going to be
very disappointed that you didn’t applaud them.
[Applause.] ... encouraging investment in cities and
townships requires initiatives of many arms of
government. Minister Sisulu will shortly release a White
Paper on the reforms necessary to build more inclusive
residential property markets, and accelerate the
upgrading of informal settlements. The National Treasury
is working with municipalities on measures to reduce the
cost of dealing with construction permits, obtaining
electricity connections and the registration of property.
The Department of Trade and Industry is leading a similar
initiative with other departments and agencies to make it
easier to start a business, pay taxes, get credit, trade
across borders, enforce contracts, and resolve
insolvencies. Local initiatives are often the key to
progress in tourism and the hospitality industry. Ms Lisa
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Sheard, captured this well in her budget tip: “Tourism
encourages pride of place”. Pride of place ensures that
the water will run, the streets will be clean and signage
will be clear. Ms Sheard also wrote that and I quote:
Tourism is woman full. Women excel and dominate.
Tourism instils a good and honest work ethic – it will
not make you rich and famous quickly, but it can be
very rewarding. With transformation, we will see growth
and growth will strengthen the forces of
transformation.
Thanks, Ms Sheard for her ideas to Minister Hannekom.
Please, thank her. [Applause.] I caught him asleep, you
see.
As far as health services are concerned, the government
is moving towards the next phase of the implementation of
the NHI. We are committed to achieving universal health
coverage, in line with the vision of the NDP. 11 NHI
pilots have yielded valuable insights, on which we are
now able to build further. These include: firstly, the
design of contracts with general practitioners; secondly,
more effective chronic medicine dispensing; thirdly,
strengthening district health services through clinical
specialist teams, ward-based outreach teams and school
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health services; and lastly, supportive information
systems.
In the next phase of NHI implementation, an NHI Fund will
be established, this year. Its initial focus will be:
firstly, to improve access to a common set of maternal
health and antenatal services and family planning
services; secondly, to expand the integrated school
health programmes, including provision of spectacles and
hearing aids; and lastly, to improve services for people
with disabilities, the elderly and mentally ill patients,
including provision of wheelchairs and other assistive
devices. [Applause.] Well done, Minister Motsoaledi.
The service package financed by the NHI Fund will be
progressively expanded. In setting up the Fund, we will
look at various funding options, including possible
adjustments to the tax credit on medical scheme
contributions. Further details will be provided in the
Adjustments Budget in October this year, and in the
course of the legislative processes. Taking into account
the 160 submissions received from the public, the
National Treasury and the Department of Health are
working together to revise and finalise the NHI White
Paper and the long-term financing arrangements, while we
get the parallel process going.
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There will be consultations with stakeholders over the
period ahead on reform of the medical scheme environment,
including the consolidation of public sector funds. Over
the next few months, I will be working with Minister
Motsoaledi, Minister Nzimande and Minister Patel on
planning the Limpopo Central Hospital and the new medical
school of the University of Limpopo. [Applause.]
Government is committed to increasing investment towards
health promotion targeting noncommunicable diseases
alongside the implementation of the sugary drinks tax,
such as diabetes screening and nutrition education. An
additional R885 million has been added to support the
implementation of the universal test-and-treat policy for
HIV and R600 million for the commissioning of the new
Nelson Mandela Children’s Hospital. [Applause.]
Hon members, the quality of our schools and further
education institutions is at the heart of our commitment
to our children’s future. Improvements have to begin in
the foundation phase of the education in the education
value-chain. We will continue to increase resources for
early childhood development, improve our basic education
outcomes and step up our support to TVET colleges and
universities. Spending on basic education next year will
be over R240 billion, or 17,5% of the consolidated
Budget. Allocations for school buildings increase at
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12,5% a year. [Applause.] Minister Motshekga requires
your encouragement.
Spending on learning and teaching support materials
increases by 9,5% over the next three years. Now in this
context, how are we supporting university students?
Government recognises the needs articulated by students
in universities and TVET colleges. As the economy grows,
we will be able to do more to finance an expansion in
tertiary education opportunities and improvements in
student funding. Madam Speaker, in addition to the
increases of R32 billion we made in the higher education
allocations in last year’s Budget and the 2016 MTBPS, we
have added a further R5 billion in the outer year of this
MTEF.
Government has provided funds to ensure that no student
whose combined family income is below R600 000 per annum
will face fee increases at universities and TVET colleges
for 2017. [Applause.] All poor students who applied and
qualified for NSFAS awards, and who have been accepted by
a university or a TVET college, will be supported. The
Heher Commission of Inquiry into Higher Education and
Training, established by the President will complete its
work by June this year.
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The Inter-Ministerial Committee on Higher Education led
by Minister Radebe is engaging all stakeholders to
discuss the various issues affecting this area. Civil
society initiatives involving business, churches and
other organisations have created both the space and the
opportunity for a diversity of options to be considered.
The President has invited stakeholders to participate in
these processes that are underway so that all views are
heard and all contributions accepted. Given the magnitude
of student funding requirements, it is imperative that we
find consensus on a clear roadmap towards a better higher
education and training system – and a roadmap we are
going to need for the next five to 10 years. It will
clearly indicate how society will achieve access,
opportunity, financing and support for students in the
university and further education sectors.
Several broad principles assist in finding the way
forward and developing this roadmap. Government is
determined to address the challenges identified in postschool education and training in a phased manner.
Resources will be taken into account in determining the
pace with which these can be addressed. Government stands
ready to engage with education stakeholders and adapt
financing arrangements as may be required in future
years, within the scope of available resources.
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Universities, students and education stakeholders share
responsibility for improving access and quality and the
diversity of higher education and training provided,
within a framework of consultation rather than
confrontation. A growing contribution is needed from
employers and industry through funding of bursaries,
internship opportunities and research programmes,
recognising that this is the foundation of future
productivity and technology advances in our economy.
Together, we will find a way forward that meets student
funding needs fairly and sustainably, so that rising
numbers of graduates can contribute positively to
inclusive growth and transformation of the economy. Let’s
talk, rather than fight. [Applause.]
Social assistance grants provide income support to the
most vulnerable in our society. These will be increased
in April to compensate for consumer price inflation. The
old age grant will increase by R90 to R1 600 for
pensioners over the age of 60, [Applause.] and R1 620 for
those over 75. The disability and care dependency grants
will also increase by R90 to R1 600. Foster care grants
increase by R30 to R920 a month. The child support grant
increases by R20 to R380 a month.
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Madam Speaker, allow me to commend the work of the interdepartmental task team led by the Department of Women,
Minister, Susan Shabangu that is co-ordinating
government’s support for the provision of sanitary pads
to indigent women, including learners and students. The
KwaZulu-Natal Department of Education is piloting the
rollout of sanitary pads at schools, and I hope we will
see complementary initiatives in other provinces as well.
[Applause.]
Public procurement will amount to about R1,5 trillion
over the next three years. Let me say that a little
differently. We will pay about R500 billion a year for
the delivery of goods and services as government. Not
transfers, or hand-outs, or cash distributions. The
purpose is to acquire the infrastructure and operational
inputs required for effective service delivery. Public
procurement is also an important strategic vehicle for
developing local industries, broadening economic
participation and creating work opportunities.
Last month we gazetted new preferential procurement
regulations to achieve the following: where large firms
are awarded tenders of R30 million or more, 30% of the
contract value must go to small or black-owned
enterprises, where feasible. [Applause.] Procurement
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authorities are now empowered to set clear targets to
promote black-owned and women-owned businesses,
participation of youth and disabled persons and
opportunities for rural enterprises and co-operatives.
South African suppliers will enjoy preference in respect
of goods with significant local content, thus supporting
job creation in South Africa.
Madam Speaker, there will be further procurement reforms
this year. A draft Public Procurement Bill will be
published shortly. It will establish a single procurement
authority and will consolidate the currently fragmented
regulatory environment, in keeping with section 217 of
the Constitution. The central supplier database is now
fully operational. It has made doing business with the
state much easier and cost effective. It enables
government to know who it is doing business with and to
use technology to reduce the opportunities for fraud and
corruption. Already, large numbers of transactions have
been identified for further investigation: Public service
employees who appear to be doing business with the state
- obviously, they are out of order; supply agreements
that reflect the identity numbers of deceased persons;
and payments to bank accounts other than those of the
relevant suppliers. These are all the issues that will be
detectable with the new technology.
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Madam Speaker, in some cases we will find that there are
legitimate explanations for some of the mishaps. But
where fraud or corruption is identified, action must be
taken. [Applause.] The procurement office currently
manages 71 transversal contracts 71 transversal contracts
covering over 23 000 items worth R61 billion. Good
progress is being made to find better value for money
while expanding and diversifying the number of suppliers.
Let me give you some example, savings of R675 million in
2016-17 on cellphones and vehicle contracts. The vehicle
contract alone is expected to save the state between
R1 billion and R1,5 billion per year over the mediumterm.
In the property leasing sector, we expect savings of
between R2 billion and R3 billion to be realised, while
releasing resources for greater employment and
contracting in building maintenance and services.
Collaborative efforts between Sita and National Treasury
have led to savings of R2,5 billion over the next three
years in the 10 largest ICT equipment contracts. Working
with the Department of Basic Education on cost-effective
standards for building design, we have reduced the
average cost of new schools from R70 million for 7 500
square meters to R34 million. I need to emphasise again
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that suppliers who have met their delivery obligations
are entitled to payment within 30 days – officials,
please note. We will continue to monitor progress in
meeting this particular commitment.
On the transformation of the financial sector, since the
global financial crisis in 2008, we together with our
partners in the G20, have been on a long journey to make
the banking system safer, and prevent the type of
economic crisis that systemically important banks can
trigger. We responded with a series of substantial,
intrusive and intensive regulatory reforms both globally
and in South Africa. Cabinet approved the shift to the
Twin Peaks regulatory system to make the financial sector
safer and serve better and reduce the risks to South
Africa, introducing the following structural reforms to
our regulatory system.
In 2012, the new Financial Markets Act introduced a
framework for unlisted derivatives, which caused so much
damage in the 2008 global financial crisis but on the
subprime loans. In 2013, the Banks Amendment Act brought
in requirements for increased capital and better
liquidity management. In 2013, government took steps to
deal with household over-indebtedness starting with
abuses in emolument attachment orders or garnishee
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orders. In 2015, former Minister Nene tabled the
Financial Sector Regulation Bill to give effect the Twin
Peaks system. As soon as this bill is enacted, we will be
able to establish a dedicated market conduct regulator to
protect customers and ensure they are treated fairly.
Earlier this year, together with Minister Davies, new
restrictions on credit life insurance were implemented,
preventing the sale of retrenchment insurance to people
without jobs, for example. As an employer, national
government has investigated 135 000 of these garnishee
orders against state employees and reduced the number of
deductions by 50 000 at this stage.
We hope all employers will assist their employees in the
same way – by safeguarding them from unfair garnishee
orders. As we have seen recently with the Competition
Commission investigation, there is evidence of a
collusive culture and a greedy culture at trading desks
in banks. It is precisely to deal with such abuses that
we have proposed a dedicated market conduct regulator,
and we hope Parliament will pass this Bill as soon as
possible. Collusion must be stamped out whether it is in
banking, construction or the bread industry. But banks
need tougher rules to cover financial market abuses.
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The Reserve Bank and National Treasury have initiated
work on a more comprehensive Financial Markets Review
under the leadership of former Deputy Governor, James
Cross, to build on the review conducted in 2014. Although
progress has been made in transforming the financial
sector, more needs to be done to broaden access through
more affordable financial services, improve market
conduct, ensure employment equity at top management
levels, provide procurement opportunities and transform
ownership.
We live in an era of rapid technological change. Three
new banks have been granted provisional licences,
including the Postbank, and two new stock exchanges.
Their business models are based on technological
innovation with potential to bring services more costeffectively to more people, in other words to reduce
charges that we pay to these institutions. I am pleased
to announce that we will work with partners at Nedlac,
who have requested that a Financial Sector Summit take
place in 2017 to consider transformation in this sector.
The 2017 Budget has been prepared with a view to
strengthening both our economic growth and the
transformation of our society. This year’s Budget Review
sets out our point of departure:
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To achieve the vision of the Constitution, South Africa
needs transformation that opens a path to inclusive
economic growth and development. Transformation without
economic growth would be narrow and unsustainable.
Growth without transformation would only reinforce the
inequitable patterns of wealth inherited from the past.
Although our own transformation imperative derives from a
particular historical trajectory, many analysts have
pointed to similarities with social fragmentation and
inequality challenges elsewhere in the world. In December
last year, the economics profession lost one of its great
champions of redistribution as a public policy priority.
Prof Tony Atkinson was both a leading author and academic
in the field of public economics, and an expert in the
study of the distribution of income and wealth in both
developed and developing countries. He provided
compelling evidence that, in his words, “less inequality
is associated with greater macroeconomic stability and
more sustainable growth.” He argued strongly for active
policies to address inequality. The evidence supports our
insistence on a progressive income tax structure, our
ongoing work on health insurance and social security
reform, our focus on further education and training and
our recognition of the structural and technological
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dimensions of our employment challenge all find resonance
in Atkinson’s policy proposals.
With an international agenda in mind, he also set out the
case for a global individual tax on total wealth, higher
official development assistance by rich countries - I
hope the diplomatic core is listening to this carefully,
improved access of households to credit markets and
guaranteed public employment for those out of work –
these are some of his ideas. On one important reform, we
have taken a giant step forward. We have agreed to
implement a minimum wage as the President and the Deputy
President have announced of R20 an hour with effect from
next year. Its implementation will require complementary
measures to support workers and employers in vulnerable
and low-wage sectors, and enhanced assistance to young
and unskilled work-seekers.
We also need to seek progress on social security reform
alongside phasing in the minimum wage. Our past efforts
have come short of delivering either adequate growth or
the social transformation we need. We are at a crossroads
in that sense now. We need to act urgently to build
confidence and support investment in our economy. We need
to bring all stakeholders onto an inclusive growth and
transformation path. We have proven that we can change
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course through negotiation, participation and
partnership. We have the resilience needed to more
forward confidently even in uncertain times.
Last year, impetus was given to several initiatives under
Mr Jabu Mabuza in as far as the CEO initiative is
concerned. A fund to support small and medium enterprises
has been established voluntarily by the private sector to
the tune of R1,5 billion and that money is in the bank. A
youth employment service programme has been initiated,
with the aim of creating a million work opportunities
over the next three years for our young people in private
businesses. [Applause.]
Strategic interventions to support black participation in
agriculture have also been developed. In the year ahead
our focus must be on inclusive growth and a
transformation action plan. Bold and ethical leadership
is needed from all sectors of society. In this way, we
can all embrace a vision of substantive meaningful
transformation, which will allow us to say, we all own
our economy. In our communities, there are strong bonds
and powerful traditions of caring for one another. These
are wonderful social assets, and I believe that all of us
can commit to doing more to make the lives of fellow
South Africans better. There will be many obstacles, but
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we must overcome them. Detractors will abound; this can’t
work and that needs this kind of change or the other,
let’s disprove them. Negativity inspired by greed and
selfishness will try to obstruct this process, defeat the
bearers of this toxic ethic.
South Africans, wherever you are, you have an important
contribution to make to transform our society and
economy. Own this process; defend your gains; demand
accountability from all. Be an active agent for change.
[Applause.] Unity is power. [Applause.] So, what are the
main elements ... it’s been a long delivery, so, let me
wake you up. What are the main elements of this Budget?
While global growth is slightly better, geo-political and
economic uncertainties have increased; our low growth
trajectory provides a major challenge for government and
citizens; we need to radically transform our economy so
that we have a more diversified economy, with more jobs,
greater inclusivity in ownership and participation; our
financial situation is constrained, but we have still
produced a credible budget and there is lots of money in
the system that we could use better; we need to
prioritise our spending better, implement our plans more
effectively and make a greater impact with the money that
we have; we need to build the widest possible partnership
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to promote consensus and action on a programme for
inclusive growth and transformation.
Allow me in conclusion, Mr President and Deputy
President, to thank you for your guidance. [Applause.] I
would also like to thank my Cabinet colleagues and
members of the Ministers’ Committee on the Budget for
their support, co-operation and wisdom. I thank the
provincial premiers and finance MECs, and municipal
mayors, who share our fiscal and financial
responsibilities ... [Interjections.]
Mr M Q NDLOZI: On a point of order!
The SPEAKER: What is the point of order, hon member? Hon
Minister, please take your seat!
Mr M Q NDLOZI: Hon Speaker, I want to raise an order that
there is no guidance that Mr Zuma gives to the country.
The SPEAKER: Hon member that is not a point of order.
Mr M Q NDLOZI: He must not be thanked in the name of this
Parliament or in the name of the people of South Africa.
The MINISTER OF FINANCE: ... as I was saying, we thank
our provincial premiers; finance MECs, municipal mayors,
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who share our fiscal and financial responsibilities. My
sincere thanks go to Deputy Minister, Jonas and DirectorGeneral, Fuzile for their absolute integrity and
indefatigable commitment to public service. [Applause.]
Hon members of the House will join me in expressing
appreciation to staff of the National Treasury, the SA
Reserve Bank, the Sars and the finance family
institutions. [Applause.] I am also grateful to the
finance and appropriation committees, who have
responsibility for considering the Division of Revenue
Bill, the Appropriation Bill and today’s revenue and
expenditure proposals. Hon Carrim and De Beer are not
listening. I paraphrase what I said in October last year,
fellow South Africans, if we make the right choices and
do the right things we will achieve a just and fair
society, founded on human dignity and equality. We will
indeed transform our economy and country so that we can
all live in dignity, peace and wellbeing. This is the
time for activists, workers, business persons, the
clergy, professionals and citizens at large to actively
engage in shaping the transformation agenda and ensuring
that we do have a just and equitable society. We also
need to consider, in the face of such intractable
economic hardships and disparities, whether we should
apply our minds to supplement our constitutional Bill of
22 FEBRUARY 2017
PAGE 56 of 61
Rights with a Charter of Economic Rights – a charter that
would bind all of us to an economy which provides access
to decent and well remunerated jobs; facilitates training
and retraining of citizens in the face of technological
change; and creates a supportive environment for micro,
small and medium businesses and co-operatives. So, let’s
think about and support the idea and get consensus in our
country as we go forward.
We can draw inspiration from Inkosi Albert Luthuli in
times like this, when he says:
I believe that here in South Africa with all our
diversities of colour and race; we will show the world
a new pattern for democracy. There is a challenge for
us to set a new example for all. Let us not side step
this task.
That is the responsibility we have. [Applause.] Ours is
the collective responsibility, despite many distractions,
to live up to the expectations of Oliver Tambo, Walter
Sisulu, Beyers Naude, Nelson Mandela, Albert Luthuli,
Yusuf Dadoo, Lilian Ngoyi and many others. In this way we
will honour the confidence and trust that our people have
put in us. In this way our transformation efforts will
serve all South Africans. In his tribute to the South
22 FEBRUARY 2017
PAGE 57 of 61
African soldiers who lost their lives with the sinking of
the SS Mendi, the poet S.E.K Mqhayi wrote:
Uba munye osebenzayo bese kuphila abanye. [Somebody has
to serve, so that others can live.]
... somebody has to serve, so that others can live.
[Applause.] Can we, in this spirit, say: we have built a
better South Africa, with a more inclusive economy, and
all citizens living in dignity, advancing economically,
over generations to come and that’s the question that our
children and our grandchildren will ask us.
As I end, I wish to table this bundle – the 2017 Budget
Speech, the 2017 Budget Review including the Fiscal
Framework, the Revenue proposal including customs and
excise duties, Estimates of National Revenue and replies
to the Budgetary Review and Recommendations Report, BRRR,
the Division of Revenue Bill, Appropriation Bill, the
Estimate of National Expenditure. Ngiyabonga,
ndiyabulela, dankie, thank you, ke a leboha, ke a leboga,
na khensa, ndi a livhuwa, ngiyathokoza. [Applause.]
The SPEAKER: Order! Hon members, on your behalf, I thank
the hon Minister, the papers tabled by the Minister will
be referred to the relevant committees.
22 FEBRUARY 2017
PAGE 58 of 61
The House adjourned at 15:34.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
Division of Revenue Amendment Bill, 2017, submitted by the Minister
of Finance.
Referred to the Standing Committee on Appropriations and the Select
Committee on Appropriations.
2.
Referral of Bill to National House of Traditional Leaders
(1)
The Secretary to Parliament has, in accordance with section 18(1) of the
Traditional Leadership and Governance Framework Act, 2003 (Act No.
41 of 2003), referred the Performers' Protection Amendment Bill [B 24
– 2016] (National Assembly – sec 75) to the National House of
22 FEBRUARY 2017
PAGE 59 of 61
Traditional Leaders, which must, within 30 days from the date of the
referral (i.e.23 March 2017), make any comments it wishes to make.
National Assembly
The Speaker
1.
Introduction of Bills
(1)
The Minister of Finance
(a) Appropriation Bill [B 5 – 2017] (National Assembly – proposed sec
77).
(b) Division of Revenue Bill [B 4 – 2017] (National Assembly –
proposed sec 76)
[Explanatory summary of Bill and prior notice of its introduction
published in Government Gazette No 40610 of 10 February 2017.]
Introduction and referral to the Joint Tagging Mechanism (JTM) for
classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill
may be submitted to the JTM. The Bill may only be classified after the
expiry of at least three parliamentary working days since introduction.
22 FEBRUARY 2017
PAGE 60 of 61
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Budget Speech of the Minister of Finance – 22 February 2017 [RP
11-2017].
(b)
Budget Review 2017 [RP 10-2017], including the –
- fiscal framework;
- revenue proposals, including customs and excise duties;
- replies to Budgetary Review and Recommendation Reports.
(c)
Estimates of National Expenditure 2017 [RP 09-2017].
(d)
Division of Revenue Bill [B 4 – 2017], tabled in terms of section 10(1) of
the Intergovernmental Fiscal Relations Act, 1997 (Act No 97 of 1997).
(e)
Appropriation Bill [B 5 – 2017].
COMMITTEE REPORTS
National Assembly
22 FEBRUARY 2017
Please see pages 4-11 of the ATCs.
PAGE 61 of 61
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