Hansard: NCOP: Unrevised Hansard
House: National Council of Provinces
Date of Meeting: 15 Nov 2018
No summary available.
THURSDAY, 15 NOVEMBER 2018
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
The Council met at 14:03.
The House Chairperson: Committees, Oversight, Co-operative Governance and Intergovernmental Relations took the Chair and requested members to observe a moment of silence for prayers or meditation.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Khawula, why are you rising?
Mr M KHAWULA: I’m rising on a point of order, hon Chairperson. Since you have now made it customary that you occupy that Chair, I’m moving that, you know, if the ANC wins next year they must make you the Chairperson of the NCOP.
The HOUSE CHAIRPERSON (Mr A J Nyambi): You are out of order.
Mr M KHAWULA: That chair belongs to you now, Chairperson.
The HOUSE CHAIRPERSON (Mr A J Nyambi): You are out of order, hon Khawula. Hon members, does any member wish to give a notice of a motion? Notice of a motion, none. Does any member wish to move a motion without notice? Okay, hon Samka!
CASTER SEMENYA STEALS THE SHOW
Ms P C SAMKA: Hon House Chairperson, I hereby move without notice on behalf of the African National Congress:
That the Council -
notes that the middle distance runner Caster Semenya stole the show at the South African Sports awards held in Bloemfontein, by walking away with the Sports Star of the Year, Sportswoman of the Year and the People’s Choice Award;
also notes that Caster was rewarded for a superb season on the track, which included multiple medals at the Commonwealth Games, Confederation of African Athletics, CAA, African Senior Championships, International Association of Athletics Federations, IAAF, Diamond League and IAAF Continental Cup events; and
congratulates Caster Semenya on this marvellous achievement and hope that she continues to make us proud.
Motion agreed to in accordance with section 65 of the Constitution.
Mr F ESSACK: Hon Chairperson, I’m sorry, I apologise it was a point of order, but see the member has left the House. Maybe if the member comes back you will rule on whether it’s orderly for a member to be attired in unsavoury attire in the House. However, you will rule when the member comes back. Thank you.
CONGRATULATES CHILD WITNESS INSTITUTE
Mr L V MAGWEBU: Hon Chairperson, on behalf of the Democratic Alliance I hereby wish to move without notice:
That this House -
congratulates the Child Witness Institute on recently being requested by the Chief Justice of Jammu and Kashmir High Courts in India to train court personnel on child witness in 2019;
notes that the Child Witness Institute is nongovernmental organisation based in Nelson Mandela Bay that advocates for children’s rights in the criminal justice system in South Africa and across the world;
further notes that other achievements by the Child Witness Institute having developed the Sexual Offences Court Model for South Africa, and the kids on the line campaign in response to cases of child online abuse and exploitation in South Africa;
also notes that their international work includes having been invited by the High Court of New Delhi, India to
develop guidelines on working with victims of sexual offences as well as working with United Nations International Children’s Emergency Fund, Unicef, Myanmar to develop a protocol for their judges on the use of their new child-friendly interview rooms; and
thanks the Child Witness Institute for their tremendous work and efforts in protecting our children and ensuring their rights are always considered and that their rights are realised.
Motion agreed to in accordance with section 65 of the Constitution.
CONGRATULATES THE UNIVERSITY OF THE WESTERN CAPE
Mr E MAKUE: Hon House Chairperson, I hereby move without notice on behalf of the African National Congress:
That the Council –
notes that the Higher Education and Training Minister, Naledi Pandor, said that the apartheid architect dreamt up for university or coloured people only and stack it in the Cape Flats could never have imagined the spirit and resilience of our students;
also notes that she was addressing guests at the unveiling of the University of the Western Cape Community Health Sciences building that has costed about R244 million;
further notes that the University of the Western Cape, UWC, Community Health Sciences, CHS, building will house four nursing laboratories that stimulate hospital wards environment it will also house a rehabilitation gem for occupational therapy and psycho therapy departments and natural maths and laboratories will treatment rooms and dispensaries;
congratulates the University of the Western Cape and the ANC government for this great transformational progress.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Is there any objection to the motion? In light of the objection the motion may not be proceeded
with. The motion without notice will now become notice of a motion. Hon Smit! Hon Khawula! Order, members! Hon Khawula!
THREATS TO GLOBAL SECURITY
Mr M KHAWULA: Hon Chairperson, on behalf of the Inkatha Freedom Party I move a motion without notice:
That the Council -
notes that one of the key threats to global security today is climate change;
further notes that continued growth in emissions of greenhouse gases has caused extreme weather conditions;
also notes that these extreme weather conditions have caused heat waves, droughts, catastrophic floods in many parts of the of the world;
also notes that in such situation where countries are facing unprecedented challenges has never been this great, the need to take advantage of the collective wisdom of human kind in formulating workable solutions to climate change has never been this great;
further noting that since Taiwan has made significance progress in limiting greenhouse gas emissions, recycling and reusing resources in 2017, Taiwan resource recovery rate was at 52,5%, a ratio surpassed only by Germany and Austria;
further noting that Taiwan is committed to being of the solution and willing to share its knowledge and experiences in an environmental management disaster prevention and early warning systems with other countries of the world;
calls upon this House to view positively the efforts of the Taiwan inclusion into the United Nations Convention on Climate Changes; and
also notes that climate change is a global challenge requiring an inclusive global responses and solutions.
Motion agreed to in accordance with section 65 of the Constitution.
MATHS AND SCIENCE CENTRE SET TO BE ESTABLISHED AT MASIA PRIMARY SCHOOL
Ms T K MAMPURU: On behalf of the African National Congress I hereby move without notice:
That the Council -
notes and welcomes with appreciation that a R3,5 million maths and science centre is set to be established at Masia Primary School in Vuwani, Limpopo;
also notes that the new Masia Maths and Science Academy will benefit around 2 000 learners in primary and secondary schools in Vuwani and surrounding areas;
further notes that this milestone project come after arson attacks which engulfed the area during violent protests in 2016, that saw an unrest and torching of schools; and
commends the leadership and community for standing together for the betterment of the children’s future, praises and thanks should go to the SA Medical & Education, SAME, Foundation for ensuring the realisation of the project.
Motion agreed to in accordance with section 65 of the Constitution.
SMILE FOUNDATION CELEBRATS 10 YEARS
Dr H E MATEME: Hon House Chairperson, on behalf of the African National Congress I wish to move without notice:
That the Council -
notes that this week the Smile Foundation was celebrating
10 years of bringing smiles to young faces at Tygerberg
Hospital and marked the milestone by assisting more children with reconstructive surgery;
also notes that the foundation has been hosting Smile weeks at the hospital since 2008 and have been performing cleft lip and palate surgery, craniofacial surgery and ear and nose reconstructive procedures on children in need;
further notes that this week 20 young patients lives will be positively touched making it 955 children whose lives have been changed by the foundation; and
takes the opportunity to congratulate the Smile Foundation, Tygerberg Hospital and their sponsors on this initiative and wish them well in their future endeavours.
Motion agreed to in accordance with section 65 of the Constitution
WALLY SEROTE HONOURED WITH THE NATIONAL POET LAUREATE PRIZE
Mr A S SINGH: Hon House Chairperson, I hereby move without notice on behalf of the African National Congress:
That the Council -
notes that the struggle stalwart, author and poet Dr Wally Serote has been honoured with the National Poet Laureate Prize at the South African Literary awards in Pretoria on
6 November 2018;
also notes that the 64-year-old Serote has over decades in the literature world and published his first book named Yakhal’ inkomo in 1972 and went on to win the Ingrid Jonker Prize for debut poetry in English; and
takes this opportunity to congratulate Dr Serote on bagging such a prestigious award.
Motion agreed to in accordance with section 65 of the Constitution
MALUSI GIGABA RESIGNS AS THE MINISTER OF HOME AFFAIRS
Ms T G MPAMBO-SIBHUKWANA: Hon House Chairperson, on behalf of the Democratic Alliance I hereby wish to move without notice:
That the Council -
the resignation of Malusi Gigaba as the Minister of Home Affairs on Tuesday afternoon and his resignation as a Member of Parliament today;
notes that it is disappointing that President Ramaphosa did not immediate dismiss Gigaba when a court of law found that he committed perjury;
further notes that when he was sworn in as a Member of Parliament Malusi Gigaba took an oath to honour the Constitution of the Republic, however it is an evident he failed in doing so; and
delights to see this much anticipated resignation and now that he has been relieved of his duties as a Minister, Malusi Gigaba’s hands will be less full.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Is there any objection to the motion? In light of the objection the motion may not be proceeded with. The motion without notice will now become notice of a motion. Hon Ximbi, you are the last one.
THIEVES ATTEMPT TO ROB CHURCH MEMBERS
Mr D L XIMBI: Hon Chairperson, I hereby move without notice on behalf of the African National Congress:
That the Council -
notes that a suspect was wounded in a shoot-out with the police when he and his 12 accomplices attempted to rob a church in Philippi East;
also notes that the police conducted an observation while church members transported the congregation’s money on Sunday when the robbers arrived and opened fire on the police;
further notes that one suspect was wounded and 13 others were arrested while three unlicensed firearms were seized by the police; and
takes this opportunity to congratulate the police on their speedy response to this new development of robbing places of worship and hope that this will send a message to other would be robbers.
Motion agreed to in accordance with section 65 of the Constitution
The CHIEF WHIP OF THE NATIONAL COUNCIL OF PROVINCES: House Chair, I
move that the Council extends the term of the ad hoc committee established to inquire into the intervention in terms of section 100 of the Constitution of the Republic of South Africa, 1996 in the North West Provincial Government to monitor, review and receive progress reports on the intervention until such time that a decision is taken to terminate it.
Question put: That the motion be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
FIRST ORDER OF THE DAY
The CHIEF WHIP OF THE NATIONAL COUNCIL OF PROVINCES
CONSIDERATION OF NATIONAL HEALTH LABORATORY SERVICES AMENDMENT BILL AND REPORT OF SELECT COMMITTEE ON SOCIAL SERVICES THEREON
Ms P C SAMKA: Hon Chairperson, hon members, the National Health Laboratory Bill that was referred to us as the Select Committee on Social Services by the Portfolio Committee on Health for deliberations and concurrence. Hon members, the National Health Laboratory Services, NHLS, are the backbone of the health system as it provides the blood tests needed to diagnose and monitor disease ranging from HIV to cervical cancer. Not only do its facilities provide all the tests ordered for public sector patients, the military and prisons, but it also does highly specialise tests not available in the private sector.
However, hon members the NHLS is currently faced with a number of challenges. The biggest challenge is the nonpayment by the provincial Departments of Health for laboratory services rendered.
There is no law that forces provinces to pay the services rendered by the laboratory services, hence the introduction of the NHLS Bill. Hon Chairperson and hon Members, it is critical that the current efforts supported by the national Department of Health to recover money owed to the NHLS be urgently addressed to ensure the financial viability of the NHLS and enable it to continue carrying out its mandate of providing quality laboratory services to the public health sector.
Hon members, as the members of the Select Committee on Social Services with the mandates received from our respective provinces, we believe that it is important that NHLS be directly funded from the fiscus as opposed to provinces as there is no law to force them
- provincial departments - to pay up. Hon members as the members of the National Council of Provinces, we did not just rubber stamp bills that came from the National Assembly. Provinces had made their own inputs on the Bill. As the result, seven provinces voted in favour of the Bill. The Northern Cape province abstained from voting, as it did not have a final mandate. The mandate from the Free State province was still awaited. Hon members, to conclude, given that the majority of provinces voted in favour of the Bill, the Select Committee on Social Services agreed to the National Health Laboratory Services Amendment Bill [B15D-2017]. I thank you,
hon members. I table the Bill on the Health Laboratory Services Amendment Bill. [Applause.]
Question put: That the Bill be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, North West, Western Cape.
Bill accordingly agreed to in accordance of section 65 of the Constitution.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Before we proceed, I would like to take this opportunity to welcome our special delegates from Limpopo and Eastern Cape. You are welcome to this august House called the NCOP.
DEBATE ON THE HIGH UNEMPLOYMENT RATE IN SOUTH AFRICA AND WAYS OF TURNING THE TIDE BY GROWING THE ECONOMY AND CREATING JOBS
Mr L V MAGWEBU: Hon Chairperson, hon members and fellow South Africans, Thomas Carlyle, a Scottish Philosopher, writer ... [Interjections.]
The House Chairperson (Mr A J Nyambi): Order hon members; let us listen to the hon Magwebu!
Mr L V MAGWEBU: ... historian and a teacher, once said and I quote, “A man willing to work and unable to find work is perhaps the saddest sight the fortune’s inequality exhibits under the sun.”
Hon Chairperson, unemployment diminishes people and takes away their dignity when they must beg. The government therefore has a responsibility to create jobs and regrettably, have failed in this regard. In 1994, the unemployment rate was approximately 20% that translates into 1 988 million people unemployed. Expanded unemployment in 1994 was sitting at 31,5% or 3 672 million people.
However, guess what today; 24 years later, unemployment figures have escalated as per Statistics SA, they were sitting at 27,5% at quarter 3, Q3, of 2017-18 or 6 209 million people unemployed.
Expanded unemployment is currently at 37,3% or a whopping
9 757 million people unemployed today.
If we put this into global terms, with 190 million officially unemployed people in the world today, South Africa has 4,3% of the world broader unemployment number. With 0,77% of the world’s population, we have almost 5% of the world’s unemployed adults. This Chairperson, this is completely unacceptable. If we compare ourselves with other emerging economies, this becomes very tragic.
We are at 27,5% unemployment rate, Brazil is sitting at 11,8%; Russia is at 5,5%; India is at 8,8%; and China the lowest at 3,9%. How are we supposed to grow our economy and ensure South Africans have access to basic services if we cannot put our people and our economy at work?
Hon Chairperson, we are sitting on a ticking time bomb, and we need to deal with this matter soberly and we need to deal with this situation real fast. One of the best ways of addressing unemployment is through small business development. In creating jobs, we should therefore recognise that small businesses are the lifeblood of the South African economy and contributes to 60% of the labour force, and 34% of our gross domestic product, GDP.
However, the reality is that some 80% of South African small businesses fail within three years of trading. Many of these businesses fail because of the unnecessary burden placed on them
such as the red tape and late payments by government and big business.
Clearly, again we are failing in this regard and this is an ANC failure. They are the governing party and they must own up. Small businesses can drive our economy, like they do in successful economies.
Hon Chairperson, we all raise our children hopping that one day, they will graduate from universities and technikons, and that they will get jobs. However that is not happening as it should. We are failing our children.
According Statistics SA, 6,4% or 504 000 graduates are unemployed today. Again this is a ticking time bomb caused by the ANC failures and the state capture.
Hon Chairperson, as if this is not enough, we have a further problem, many young people are today not in training. Compared to Q3, of 2017, the percentage of youth, aged between 15 to 34 years, who were not in employment, education or training increased from 0,7% from 38,3% to 39% in Q3 of 2018. The not in education or training rate increased for both male and female youth in Q4 of
2018. More than four in every 10 young people were not unemployment, education or training. That is almost one out of every two youths, who should be employed, who should be learning skills at work, climbing up the career ladder and improving their family lives and their lives.
Hon Chairperson, again this is another ANC failure. This failure is compounded by a rampant corruption. Today, we all realise and we are aware that municipalities have hit rock bottom like in the West Rand District Municipality where they cannot pay the wages.
The ANC government’s corruption has caused many miseries for our people and compounds the unemployment. Their corruption is characterised by various things namely, sex for jobs and cash for job scandals. [Interjections.] Nepotism and cronyism are rife
and prevalent; incompetent people are in positions which should be staffed by the best people this country has. People should not have to pay with sex or money, for jobs.
It is estimated that corruption in government and in our state-owned entities, has cost our country a whopping R100 billion. This is the money that could have been used to create jobs for fellow South Africans who desperately needs them. It could have been used to
educate and skill our labour force, so that our children, our brothers and our sisters can earn a living.
Hon Chairperson, this is not a matter for populism, this is not a matter for denialism, this is a true story.
In my hand I have these pictures. These are the pictures every South African is confronted with every morning. As we drive up and down we see our brothers looking for jobs and begging in the streets. We should be ashamed and shame on the government of today, shame on you ANC! [Interjections.]
Hon Chairperson, hon members and fellow South Africans, the question that arises therefore is: How do we turn the tide and put South Africa back on track and create jobs for our people? The ANC has been in power for 24 years, yet unemployment has increased under their government. The ANC has failed to deliver jobs to South Africans. Now, what do we do? Well, I will tell you what needs to be done. Three key things should be done.
Firstly, we need to fight corruption. Anyone found guilty of corruption must be sentenced to a minimum of 15 years in jail. We need to make sure that public money is used for the people and make
sure that we are transparent with the use of public money. We need to establish independent units dedicated to identify, prevent, prosecute and fight fraud. We need to ensure that payment of public money is done according to the legal prescripts. We need to ensure that direct election of political holders so that people can hold their President, premiers and mayors directly accountable.
We need as we fight corruption implement regular lifestyle audits for all politicians and government officials. We need to protect and encourage whistle-blowers who report corruption because corruption is robbing the money that should be used for creating jobs.
Secondly and quickly: How do we turn the tide? We need to create fair access to real and long-term jobs. This is how we do it: Firstly, we need to introduce a voluntary national service of one year income and skills development for school-leavers. We need to create job centres throughout South Africa that provide information, advice and free Internet to job seekers; the National Youth Development Agency, NYDA, is a fuss has failed our youth. We require well run and functioning centres which help the youth, not enriching government cronies. In the Western Cape as we all know, we have job centres, like Interactive Community Access Network, Ican, in Elsies River, funded by the provincial government, which equip residents
with necessary skills to enter the job market. Again: How do we turn this turn this tide? We need to grow small business opportunities through increased funding assistance and remove blockage and the red tape. In the Western Cape we have done this and we have created the Red Rape Reduction Unit and the Red Tape Reduction Call Centre, to assist businesses to cut through the red tape. [Interjections.]
Ms T G MPAMBO-SIBHUKWANA: Itsho into!
Mr L V MAGWEBU: This is doable Chairperson, but the ANC lacks the will.
We need to prosecute and eliminate the practise of sex for jobs, cash for jobs and carpet interviews; and we need to prosecute this practice of cash for jobs and we need to ensure that as we allocate jobs, we allocate them in a manner that is free and fair.
Thirdly Chairperson, as we deal with the unemployment crisis: How do we turn the tide? This is the third point I am bringing across. We need to secure our borders and stop illegal immigration. No country in the world can afford not to secure their borders as uncontrolled immigration violates the rights of ordinary South Africans who must compete for scarce resources. Hon Chairperson, in securing our
borders we must also attract foreign nationals with scarce skills to South Africa to help grow our economy and create jobs. So, we will be mindful when we do this.
Hon Chairperson, hon members and fellow South Africans these are three key things amongst many the DA is making or is pledging to South Africans. The DA is making these pledges to South Africans because we know and we can. We have capable men and women to fix the unemployment that the ANC government is incapable of fixing. We need leadership and change capable of dealing with the current South African unemployment crisis. The ANC hosts nothing else, but talk shops and Jobs Summit which amount to nothing. Their Jobs Summit in October and zero small businesses were represented.
The DA is bringing change that builds one South Africa for all. Today, the experience of South Africans is jobs for pals, sex for jobs, cash for jobs and these carpet interviews. Tomorrow, we can bring the change we need. As the classical example is the Western Cape government has proven that these steps they have laid out to create jobs. Between the first quarters of 2017 and 2018, the Western Cape government created 75% of new jobs to South Africa, that is 165 000 jobs added to the South African economy.
In the same period, Gauteng lost 124 000 jobs. This is despite the DA-led coalition government of the City of Johannesburg creating 109 000 jobs in the first quarter of 2018. This is unacceptable.
During the threat of Day Zero, we met with stakeholders throughout the world, and let everyone know that Cape Town was open for business. We did not have one ratings downgrade during this period. During the first quarter of 2018, in the midst of Day Zero looming, Wesgro facilitated over R1 billion in investments in Cape Town, supporting the creation of 549 direct jobs. In today’s world, with climate change a reality, we need to show the world how resilient South Africans are. Cape Town’s ability to avoid a crisis, during one in a thousand year drought, boosted the investment case for Cape Town. We showed and demonstrated that where the DA governs, we create attractive environments for economic growth and investment.
Hon Chairperson, every day, our people are suffering. Every day unemployment under the ANC rule is climbing and the rate is increasing. The life is getting more expensive and fewer people have jobs. [Interjections.]
Ms T J MOKWELE: Hallelujah!
Mr L V MAGWEBUL: Jane Adams, actress and award winner, once said and I quote, “Of all the aspects of social misery, nothing is as heartbreaking as unemployment”. We need to create jobs, through creating the right environment. It is time for South Africans to get back to work. Unemployment is not only a waste of human potential, but it is a human misery that the ANC has created. Once again shame on you! The ANC has proven again and again that they lack innovation and the political will needed to solve the unemployment crisis. The DA is the only party with a plan to create access to real and long- term jobs. We have a proven track record and our strength is good governance. Our strength is anticorruption; it is integrity where we allocate jobs in a manner that is free and fair, where we ensure that we are transparent with access to public money and the spending of that public money.
Hon Chairperson, this is crisis that we need to all resolve and it is very clear that the government of the day has failed to do so. Therefore as the DA we pledge to South Africans we have the solution. I thank you.
Enkosi, ndiyabulela. [Kwaqhwatywa.]
Mr M RAYI: Hon House Chairperson, MECs present, Deputy Minister in absentia – I know he is coming, special delegates, our deputy chair of chairs from the Eastern Cape, hon members, my speech is focusing on historical context because it is important that we should look at the history, so that we don’t debate in vacuum. I am tempted to sweep after the previous speaker but there is a sweeper who is going to take care of the situation, although one is tempted. [Interjections.]
South Africa is ranked by the World Bank as an upper middle income country, together with countries such as Algeria, Botswana and Turkey. Our country’s population stands at just over 57,7 million. Our unemployment rate stands at 27,5% in terms of the narrow definition of unemployment. By any standard this figure is worryingly high. True to habit, some political parties are going to tell us in this House how government has failed our people and allowed unemployment to skyrocket to the current levels.
According to their narrative, all the challenges we face started in 1994, after the ANC led the country to the historic democratic breakthrough. The hon member before me, when he quoted figures, he started from 1994. So, the world started in 1994, according to him. Talking about facts and analysing problems using the prism of
historical materialism is not very profitable to the endeavours of some politicians and the media who are seeking to create news headlines by bashing the ANC-led government.
However, in our tradition as the congress movement, we analyse difficulties honestly and seek to uncover their true nature - their essence - in the interest of finding sustainable solutions. This is essential in developing an understanding of the seemingly intractable problems we face as a nation, such as chronic and structural unemployment. A close study of the unemployment data published in the third quarterly survey by Statistics SA reveals some uncomfortable truths about our national situation.
If we look at unemployment figures by race in terms of the expanded definition, which includes those work-seekers who are too discouraged to look for work, we discover that among black Africans, out of a labour force of 21,1 million, 9,7 million were unemployed in the third quarter of this year. This means that 41,8% of black African people of working age are unemployed. Within the Coloured population, the figure is at 27,6%. Indian and Asian people account for 17,5 % of the unemployed population. Unemployment among white South Africans stands at 9,3%.
Looking at the figures by province, we discover that unemployment ranges vastly from the lowest - Western Cape and Gauteng in the 20s and 30s respectively - to all other provinces with over 40% unemployment rates. We need to emphasise that these two provinces have never had a problem of Bantustans. Also, their baseline income has always been higher. [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Rayi, let me take hon Michalakis.
Mr G MICHALAKIS: House Chairperson, I rise to ask whether the member will be willing to take a question.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Rayi, are you ready to take a question?
Mr M RAYI: After the speech, I will be ready. [Interjections.]
Mr G MICHALAKIS: Are you scared?
The HOUSE CHAIRPERSON (Mr A J Nyambi): Okay, continue, hon Rayi. [Interjections.]
Mr M RAYI: I am not scared of you! [Interjections.] After I finished with the speech. [Interjections.] In a nutshell, the data from Statistics SA tell us that: The burden of unemployment is carried overwhelmingly by black Africans and coloured people; and by largely rural and underdeveloped provinces. These are provinces in our country that were designated by the apartheid state as homelands or cheap migrant labour reserves.
Statistics also tell us another story about the gendered character of unemployment. Women account for 41,2% f the unemployed population; while men account for 33,9%. Finally, the statistics underscore the importance of education in the labour market when we examine figure of the youth of our country who are not in employment or training.
In the third quarter of 2018, more than 50% of these young people, between the ages of 15 and 34, had an education level below matric, followed by those with a metric qualification at 35,1%. Only 2% of unemployed youth in South Africans are graduates. How did we get here? The democratic breakthrough our country achieved in 1994 was greeted with much praise.
However, experience gained from those countries that attained freedom before South Africa has taught us that democratisation does not automatically resolve the continuing, even deepening, economic inequalities. This was more severe in South Africa given the extreme forms of racialised and gendered poverty and inequality, characterized by low absolute standards of wellbeing among the majority of black people.
We would argue that our debate on unemployment must be rooted adequately in the realities of the South African economy. The central theme of our argument is that what has been termed the Minerals-Energy Complex, MEC, lies at the core of the South African economy, not only by virtue of its weight in economic activity but also through its determining role throughout the rest of the economy. Any economic analysis and policies that are formulated and debated without reference to this simple and central fact are futile.
Indeed, many political parties and even some academics and the media commentariat have overlooked and even consciously resisted this reality when they propose policies, as if these can be free from the MEC. So what do we mean by this term, Minerals-Energy Complex? There are those sectors associated with minerals and energy in the narrow
technical sense that lie at the core of the major sectors of the South African economy.
The role of gold as a key sector in the history of our economy is well known. In the 100 years since its discovery, some estimates put gold as having generated as much as 40% of GDP through its direct and indirect effects. Its importance has declined in recent years, with the declining price of gold, the fertility of reserves and the emergence of other sources of supply in the world market.
However, other metals have gained in prominence, especially the platinum group of metals. The same is true of coal: it is still responsible for over 80% of our country’s primary energy needs. It also provides for 20% of the country’s exports and one-third of all non-gold exports. But, very little coal is used for direct energy needs.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Rayi, I am sorry. Let me take hon Mokwele. Hon Mokwele, why are you standing?
Ms T J MOKWELE: I am standing on a point of privilege, thus to say: Welcome back mama. We were well-behaved when you were away. So, we welcome you back. [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Ja, can you take your seat! Continue, hon Rayi.
Mr M RAYI: The vast majority is either converted into electricity – that is over 50% - or into oil - over 30%. On a global scale, the South African economy is uniquely dependent on electricity and is uniquely electricity-intensive, with levels of consumption per capita comparable, for example, to those of the United Kingdom, despite limited domestic consumption by the majority of the population. This is primarily due to its use in mining and mineral processing.
Manufacturing accounts for a slightly greater proportion, but most of our manufacturing industries have historically been closely related to, and form part of the Minerals-Energy Complex, with electricity heavily used in a small number of plants in engineering, iron, steel, base metals and chemicals. [Interjections.] Thus, coal is produced to generate electricity which acts as a major direct and indirect input to the production of commodities.
On the history of South African capital: The history of the configuration of the interests of capital particularly from the 1930s and 40s, a period in which there was considerable disjuncture
between economic power - held by English, foreign or mining capital
and political power - held by Afrikaner capital - holds relevant lessons for our country today. I want to emphasise that this speech is focusing on historical developments. Our comrades after me will talk to policy interventions and policy initiatives that the ANC-led government is taking. So, be patient!
The state depended upon the sources of revenue that could be generated from the MEC and how it could intervene to obtain and to use them. However, a crucial consequence of the disjuncture between economic and political power made it difficult to employ a strategy for industrialisation based on diversification out of the economic strengths found in mining. Mining capital itself was short of a guarantee that collaboration with the state would not lead eventually to policy penalties from a hostile government, or even nationalisation.
The Nationalist-led government could not secure its re-election if it was seen to be pursuing policies overtly collaborative and supportive of mining capital which, in turn, could not be certain that the returns from an industrialisation strategy would be secure from government appropriation. Thus, private capital opted for a
strategy of importing inputs and exporting profits to Europe and North America.
Post 1994, the ANC came into government in the context of a negotiated political settlement. Negotiations inevitably involved a series of compromises that to some extent restrict the practicability of significant shifts in economic power.
Consequently, the position of large private capital has been securely safeguarded in the 25 years of our democracy.
The debate on who holds economic power and how it is exercised remains critical for our understanding of the unemployment crisis in our country. For otherwise, how could our policies be guaranteed a chance of success if the patterns of ownership and economic power remain relatively unchanged? The economic and political factors that have prompted South Africa’s industrial trajectory must be identified.
South African industrial development remains seriously deficient. A major weakness of South African industry is the relative absence of productive capacity in intermediate and capital goods. This has a negative impact on the economy in a number of different ways:
Economic expansion leads to growing imports of these goods and so creates balance of payments pressures.
Upstream and downstream integration of economic activity is poorly coordinated, in terms of the provision of mutually reinforcing access to finance, markets and technology. As a consequence of the above, employment generation, broadening of our skills base and the opportunities to diversify into new sectors of industry are severely constrained.
In a lot of our public discourse on the economy, too much emphasis is placed on: Promoting a spurious business confidence, pandering to the whims of elusive markets, which constrains consideration of more effective and more certain policy making; our national debates accord priority to a minority of opinion makers and business interests, but has not guaranteed a tangible and positive net social return; promoting small business and cooperatives which is important but should not be at the expense of distracting attention from policymaking for large-scale business on whose fortunes SMME and co- operatives would depend as suppliers of goods and services; promoting privatisation, especially as a source of revenue, whereas this merely transfers ownership at a cost, without otherwise formulating constructive policy; and celebrating the growth of our
finance industry and financialisation of our economy in general, which is essentially the intensive and extensive accumulation of fictitious capital.
Finance has penetrated into ever more areas of economic and social reproduction. This is one way in which to understand neoliberalism, which has become the most dominant form of the current period of capitalism. [Time expired.] Thank you. [Applause.]
Ms C LABUSCHAGNE: Hon Chairperson, hon members and fellow South Africans, when Cyril Ramaphosa assumed the position of the President of the country, he promised ... [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Refer to the hon President appropriately.
Ms C LABUSCHAGNE: I said when Mr Cyril Ramaphosa assumed the position of the President of the country, he promised South Africans a new dawn by liberating the people of this nation from the oppressive grasp of the Zuma dynasty. We have yet to see the so- called new dawn, nine months later, that the president announced.
Unemployment is rising, petrol prices, crime is also rising and I am
asking myself of when will this ANC take decisive leadership and lead this country effectively.
For as long as the corrupt individuals of the ANC who perpetuated the state capture and the demise of our economy are still in power, ordinary South Africans will continue to suffer in dire unemployment conditions. The difference with the DA is that we deal directly with corruption and hold our members and public representatives to account.
We have got no evidence of that in the ANC. At least 9,7 million South Africans are currently unemployed. Everyone here knows that a job can help empower an individual to first reach their full potential and earn a wage to pay for costs of living. It seems as evident from the recent unemployment statistics by Statistics SA that the ANC has no desire to empower the people of South Africa.
The ANC is happy to see citizens living in poverty without any hope of a better life. During the same conference that elected President Cyril Ramaphosa as president of the ANC, the governing party, with a fight, adopted Land Expropriation without Compensation as an official ANC policy. Let us be honest with each other — Land
Expropriation without Compensation only forces all citizens as tenants of the government and does nothing to help empower the people, most deserving of economic liberation.
Ms T J MOKWELE: Hon House Chairperson, on a point of order: I just want to highlight to hon Labuschagne that ... [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): No, no, no, you cannot do that. Hon Mokwele, take your seat.
Ms T J MOKWELE: She is late, we have adopted the report. We are going to expropriate.
The HOUSE CHAIRPERSON (Mr A J Nyambi): No, no, no, hon Mokwele, you are out of order.
Ms C LABUSCHAGNE: Chairperson, no citizen would be able to own any form of property whatsoever. This is simply further evidence for the people of South Africa that the ANC, and most probably with the elite new partners in corruption, the EFF, has no vision to empower anyone except for themselves. Land Expropriation without Compensation will only chase away international investment, further hampering a South African economy in recession, which will result in
more job losses. How can we trust the same ANC that gave us Jacob Zuma, the father of the state capture to own and be the custodian of all land and property in South Africa?
The DA believes in empowering South Africans through protecting individual rights such as property ownership. This past September, Mayor Herman Mashaba handed out 488 titles deeds to residents of Soweto. One recipient said:
Even if I pass away I can leave this title deed for generations to come. I am excited.
In the same month, the DA handed over 1000 titles deeds across the Western Cape. Title deeds and property ownership allow for parents to ensure that there is capital for their children to inherit. This is about caring for the most vulnerable people of our nation. An increase in job creation would result in a more productive population. With an increasingly productive population, more citizens will be capable of being critical of the government and finally realise that the ANC is a total failure and needs to be voted out.
In the past year, the Western Cape, where the DA governs, added 75% of the total jobs created in South Africa. With such a productive province as the Western Cape, voters are aware of what the DA can provide to the citizens. Their trust in the DA during the 2009 and 2014 general elections is a clear indication that they are satisfied with our results.
It is worth noting that all provinces get an equitable share of the national budget. Yet residents experience inadequate service delivery due to corruption and political instability. But here in the Western Cape the DA has had the political will to provide a functioning provincial government that delivers to the people and creates an economic environment that is constantly growing and adding jobs to the market. Every day, South Africans across all other eight provinces are realizing the good, clean, transparent governance style of the DA, and they are roaring for change.
State capture has been one of the primary causes of job losses in South Africa. Across the various Ministerial departments – from sex for jobs in schools to the VBS Bank looting, South Africans are feeling the pressure of an economy that is crumbling. Coupled with the ANC’s radical economic transformation economic policies, job creation is sure to remain a distant dream in the clouds. Job
creation relies on a government that creates a healthy economic environment for job growth from collaboration between both the public and private sector.
The ANC of Jacob Zuma and the ANC of President Cyril Ramaphosa are in the same WhatsApp Group. Under the DA South Africa, citizens can look forward to a government that will look after their interests; create an environment for an economy that is poised to grow and good, clean, transparent governance that will always be accountable to the people. I thank you. [Applause.]
Mr R W N TOOLEY: Hon Chairperson of the NCOP, hon members of the NCOP, a very good afternoon. In his state of the nation address this year, Cyril Ramaphosa made the commitment that job creation will be at the centre of government’s agenda in 2018. The President subsequently launched the Youth Employment Service, yes, initiative responding to the youth unemployment. Youth unemployment is the most pressing and socioeconomic challenge facing the country today.
Researchers indicated that education, skills training, health services, access to opportunities and transport have a positive impact on economic development and employment. Globally, the private sector creates nine out of every 10 jobs.
In South Africa, only 18% of the working age population earn monthly salaries. A total of 75% of the unemployed people in our country are unskilled.
We are of the opinion that the informal sector specifically has the ability to contribute significantly to the employment in South Africa; however, currently the performance of this sector is slow when compared to other developing countries in the Britain, Russia, India and South Africa, Brics, group. Perhaps, we need to treat some policies to improve labour absorption in this very vibrant sector of our country.
The majority of the unemployed are aged between 15 and 34-years-old, relating to a total of over 80%. Youth unemployment is a major problem and needs to be addressed. In Limpopo, we have regions were unemployment is that much higher, for instance, in the region of Mopani where unemployment exceeds 48% compared to regions such as the Waterberg where it’s far lower.
The poor state of the education system also plays a role in unemployment, especially regarding the youth and unskilled, for example, the unemployment rate for youth without Grade 12 is three times higher than for youth who have completed Grade 12. This
statistic should be emphasised to our scholars regularly in an attempt to mitigate the high school drop out statistics we face as a province and a country.
The private sector provides 86% of all employment while our government provides the remaining 14%. Only 41% of all economically active people are employed, with the youth sector being the most effected as I have mention.
Traditional economic sectors such as manufacturing have declined when it comes to their contribution towards job opportunities if compared to jobs created in the services sector. More and more workers are in temporary employment with no fixed monthly income. In South Africa, since 2008, manufacturing jobs have been lost while services jobs, sales and services have increased by the same amount of approximately 300 000 jobs over the three-year period.
Current trends are towards knowledge or skills intensive services economy. This situation is especially affecting the youth and linked to this situation is the low levels of self-employment and entrepreneurship in our country.
Considering the demand for skills in the economy, it is fundamental that we focus more on developing the appropriate skills for our youth. The current skills challenge we face in Limpopo is the development of the Musina/Makhado Special Economic Zone. For this initiative to be effective on reducing unemployment the requisite skills are essential and as a province, we have approached the various tertiary institutions in the province, namely, Limpopo University, Univen and our TVET Colleges to assist in developing their skills. The risk will be that if we don’t have the requisite skills the investor, which is China, will import the necessary skills from their country defeating the objective of these massive investments to reduce unemployment
Since 2008, the government has invested substantially in infrastructure and this process will continue as a tool to combat low growth. The programme to develop emerging contractors by Public Works is assisting; however, we still see the dominance of the previous large construction companies dominating this space.
Therefore, we need to see a lot more emerging contractors progressing to the point where they are able to bid for multi- million infrastructure projects.
This sector will substantially contribute to job creation over the next decade. The mining sector has shown a negative growth over the last two decades, although it is one of the provinces economic pillars, there has been significant mechanisation of this sector and we can therefore not expect this industry to absorb as much labour as we anticipate.
Agro-processing, which is dependent on the agricultural sector and the manufacturing sector, has a huge growth potential in Limpopo. We have seen a construction of agro-processing plant in Nwanedi region of Vhembe which is striving with over 20 small scale farmers delivering to this agricultural hub. The sector is the cornerstone of economic development and has the potential to contribute substantially to job creation as is seen in the Vhembe region.
The tourism sector has been growing at a rapid rate and this trend will continue and does contribute substantially to job creation. We have witnessed this in the sense that Limpopo was the second most visited destination in the country by local tourists in the last financial year.
We continue to fund the promotion of our province through the Limpopo Tourism Agency and as this sector are dynamic; we look
forward to focussing our strategy on the younger age group between the age of 18 and 35 who dominate the tourism market visiting our country. These tourists do not necessarily want the 5 star hotels and mass tourism but rather personal and unique experiences. This should be seen as an opportunity in our rural communities in the province. One example that I would like to give to this honourable House is the Ribola Art Route in Elim town of Vhembe, where youth establish this route to enhance experience in the sale of unique African art and culture. Take a look at lovely Limpopo on the face book pages and you will see this route, very interesting.
The country’s rate of individuals becoming entrepreneurs is low at 14% compared to the global average of 27%, as well as the rate of establishing new businesses is at 2,3% compared to the global average of 8%.
The National Development Plan, NDP, aspires to create 11 million jobs by 2030, with an annual GDP growth rate of 5,4%. However, we are aware that these predictions are not being met and therefore we have to change tactic to some extent and understand that we are an economy that grows on an average of 3% a year and therefore our strategy must take this into account when planning for growth in jobs.
According to the National Development Plan, public employment schemes are important towards increased employment rates.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Sorry, hon MEC. Let me take, hon Essack. Hon Essack, why are you standing?
Mr F ESSACK: Hon Chairperson, the MEC has made a comment at the podium. I don’t want to debate with you. So, I would like to ask him a question.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Okay, let’s first ascertain whether he is ready to take your question. Hon MEC, are you ready to take a question?
Mr R W N TOOLEY: Could I take a question after I have completed, sir?
The HOUSE CHAIRPERSON (Mr A J Nyambi): At the end of the speech?
Mr R W N TOOLEY: I will take any question after we have completed.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Continue, hon MEC. Take your seat.
Mr R W N TOOLEY: That’s correct, quiet correct, sir.
Our experience is that our municipalities when we come to Expanded Public Works Programme, EPWP, and Community Works Programme are the two main public employment schemes. These schemes need to employ or create two million jobs opportunities per year.
Our experience in this sector is that our municipalities are not coming close to meeting the targets of EPWP and CWP programmes. This has been raised with this sphere of government and as the provincial government during our IGR engagements; we will follow up on this issue.
In collaboration with the National Growth Path, the Industrial Development Corporation has established the Green Industries Special Business Unit, with a five-year budget of R22 billion. It is estimated that 462 000 jobs could be created in the green economy.
We should see this green economy as an opportunity considering the empirical evidence of global warming and climate change. Surely, this calls for us as a government to look at alternative energy options, including our public transport sector. Let’s fundamentally address the transformation of the sector by introducing electric busses.
In fact in the province, we will be testing an electric bus and see if this can reduce our costs as well as stimulate our manufacturing sector. Should this bus option work and considering we need to recapitalise our bus services at the cost of R500 million, we could consider the option of constructing new busses at our industrial packs in places such as Seshego and Nkowankowa.
One of the labour intensive sectors, which are part of the job drivers, is the agricultural sector. This sector has been neglected, leading to a partial rural decay in the province. The agricultural sector has contracted drastically over the past few decades with regard to employment and production.
In 1971 when there was no labour protection, the agricultural sector employed a number of people, however, these reduce significantly. We see this sector playing a more significant role in economic development, especially in rural areas. Proposals to assist the growth of the sector include provision of infrastructure, improved linkages between commercial and small farmers, improved land reform processes, technological development and improved policy implementation. Our funding to emerging farmers has increased concededly. With an assistance of commercial farmers, a number of
emerging farmers in the ovacado industry have emerged to become sustainable farmers and job creators.
In September 2013, the long awaited “youth job subsidy bill”, officially known as the Employment Tax Incentive Bill, was released. The overall goal of the Bill is to accelerate job creation for the youth of South Africa.
The Department of Trade and Industry is implementing the Industrial Policy Action Plan, Ipap, for South Africa in collaboration with the Industrial Development Corporation. The Ipap has the following focus, namely, diversification of the economy, labour absorbing industrialisation, infrastructure development and movement to a knowledge economy.
The overall principles of the Ipap are to reverse the threat of deindustrialisation and improve value-adding and labour intensive sectors. The Ipap has identified a number of threats regarding the strengthening of manufacturing in South Africa.
The HOUSE CHAIRPERSON (Mr A J Nyambi): As you conclude, hon MEC.
Mr R W N TOOLEY: Thank you very much, hon Chairperson. I will take the questions.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Unfortunately ...
Mr F ESSACK: You see.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Unfortunately, we don’t have the time for the questions. [Applause.]
Ms N NKOPANE (Eastern Cape): Hon Chairperson of the NCOP, hon members, honoured guests, good afternoon. I bring you revolutionary greetings from the people of the Eastern Cape, the home of legends. Thank you for inviting us to this important debate on the high unemployment rate in South Africa and the ways of turning the tide by growing the economy and creating jobs. [Interjections.] Let me begin by reaffirming that the ANC is committed to building a more equal society, in which all can find decent work and enjoy sustainable livelihoods.
Indeed, the ANC government has achieved significant progress in this regard post the 1994 democratic breakthrough. There has been increased protection of workers, an expansion of the black middle
strata and the creation of work opportunities through the expanded provision of social and economic infrastructure. In the 24 years of our governance we have significantly improved the lives of South Africans even though our economy has not been performing strongly. This has been confirmed by a report that was released by the Institute for Race Relations which stated that, “despite high unemployment, more people are taking part in the economy, with 58,1% market participation in 2015, up from only 47,7% in 1994.” The report further explained that more than double the amount of black Africans were employed in 2015 ...
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order! Order hon Nkopane, please take your seat. The hon member Smit?
Mr C F B SMIT: Hon House Chair, on a point of order: I would like to know if the hon member on the podium will take a question on one of her statements right now.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Nkopane, are you ready to take a question?
Ms N NKOPANE: He can SMS me.
The HOUSE CHAIRPERSON (Ms M C Dikgale): She is not ready. Continue hon member. [Interjections.] Order hon Khawula! Order! [Interjections.] Order hon Mokwele! It is an issue between the two members.
Ms N NKOPANE: ... than they were in 1994. Although we know that before 1994, the population and the governance of the era was characterised by weak and unrealistic records as the majority of South African citizens were not in the National Population Register neither on the voter’s roll so their human rights were trampled on. Despite these phenomenal results and observations, unemployment in South Africa is unacceptably high. Two decades since the end of apartheid, South Africa’s labour market remains characterised by persistently high levels of unemployment, substantial earnings inequality, a surplus of unskilled labour, and acute skills shortages in areas that are key for economic growth.
The Quarterly Labour Force Survey confirmed that the official unemployment rate increased by 0,5% in the second quarter of 2018. It explained that the increase was a result of a decline of 90 000 in the number of people in employment and an increase of 102 000 in the number of people who became unemployed between the first and second quarters of 2018. The high unemployment rate is further
worsened by an unfavourable global economic situation such as the rising oil price which has a negative impact ...
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order hon Smit!
Ms N NKOPANE: ... on our fragile economy. Unemployment in our Eastern Cape province is the highest in the country which is one of the reasons for the high rates of outmigration to other provinces and an overconcentration of populations in urban areas. For us, with this debate, for millions of South Africans; this is a living reality. A living reality which we must work together to find lasting solutions that will help us overcome the structural problem of unemployment. This requires us to be honest and frank in our analysis of the rising problem of unemployment in the country. At its 54th National Conference, the ANC admitted that:
Current factors such as persistent low levels of economic growth, rising national debt, some weaknesses of state-owned companies, low levels of business and consumer confidence, low investment levels, credit rating downgrades, policy inconsistencies and public and private sector corruption have limited the ANC-led government’s ability to drive socioeconomic
transformation and address South Africa’s triple challenge of inequality, poverty and unemployment.
We need to turn the tide, we need to grow an inclusive economy and create jobs. In light of the above, the Eastern Cape fully supports the announced stimulus and recovery plan by the President of the Republic, His Excellency ...
... eo re mo ratang haholo, Ntate Mopresidente wa rona, Ntate Mohlomphei Cyril Ramaphosa! [Mahofi.]
As explained, the stimulus package will amongst others ignite economic activity, restore investor confidence, prevent further joblessness and create jobs. We need to have a specific focus on manufacturing and industrial parks. We need to boost the tourism sector and invest in sustainable energy. We must invest in township revitalisation in order to grow the local economy which will contribute in the creation of jobs. This includes support for small, macro and medium enterprises, SMMEs, and cooperatives. We must wage a relentless and uncompromising fight against corruption and fraud both in the public and private sectors. At the centre of the
R290 billion investments that were announced at the investment conference must be the creation of jobs.
We must invest in infrastructure development, especially in areas in the country that were largely affected by apartheid spatial patterns of development such as the Eastern Cape which is largely a rural province, with a significant population living in remote rural areas. We must therefore support the establishment of an infrastructure fund and improved investment in the municipal social infrastructure announced by the President as part of the stimulus and recovery plan. As the Eastern Cape province we are committed to creating an enabling environment for job creation and for businesses to prosper. This is the year of renewal, unity and jobs, the year to celebrate 100 years of Nelson Mandela and Albertina Sisulu. As the home province of these outstanding leaders of our people, we want to assure you that the Eastern Cape government will support all efforts to create jobs and overcome the triple challenges of poverty, unemployment and inequality. I thank you Chair. [Applause.]
Ms N NKOPANE (Eastern Cape): Deputy Chairperson of Chairpersons
Ms T J MOKWELE: Thank you House Chairperson for giving us this opportunity to debate on a subject matter of today. Every
parliamentary term we have the same debates, and every time we debate we have provided the ANC with clear programmes and policies on how to address the high unemployment rate in this country, and not only grow the economy but develop it.
The difference between economic growth and economic development must not be ignored, because while economic growth may only be limited to enriching a few individuals, economic development is to the benefit of society and the economy as a whole. South Africa is the perfect example of this. When we experienced high levels of economic growth in the early 2000s we also experienced some of the highest levels of unemployment this country has ever seen. This can be put down to a number of factors. But the fundamental reason is the ANC’s unconditional embrace of free market, neoliberal capitalism and the results of this is why this country has such high levels of inequality and unemployment, particularly youth unemployment.
The free flow of goods and capital in a rigged national and international economy saw our manufacturing sector collapse leading to job losses in the hundreds of thousands. The decision to destroy state capacity and rely on outsourcing facilitated corruption and saw unemployment explode and the loosening of financial regulations
saw wealth desperately needed to develop the country leave South Africa and the financialisation of the economy.
What we are seeing now with the talk of cutting the amount of public servants, the continued belief in the free market, financialisation and more recently the deliberate collapse of the state-owned enterprises, SOEs, is a repetition of those very same mistakes.
There are examples across the world of what we can and should be doing to develop our country, create jobs and lift our people out of poverty.
Expropriation of land without compensation is the starting point, but the way things are going by the time we get back the land the SOEs will be ...
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order! Hon Mokwele, please take your seat, there is a hand. Hon Wana, why are you standing?
Ms T WANA: Hon Chairperson, I humbly ask whether the speaker can take a question.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele ... [Interjections.]
Ms T J MOKWELE: Yes, I can take a question.
The HOUSE CHAIRPERSON (Ms M C Dikgale): She is ready.
Ms T WANA: I understand you keep on referring to financials, which percentage are the costs and financials based in when you are talking about the creation of jobs?
Ms T J MOKWELE: I can’t understand your question. What are you saying?
Ms T WANA: I am asking what financials are you referring to? Is it financials in terms of private corporation, public sector or financials in terms of the units you costed? That’s the question.
Ms T J MOKWELE: The manner in which the financial systems of the country are incurred by the ruling government. Those are the financials that I am talking about. If we can be able to transform the finances of the country and be able to make sure that we improve in the manner in which we are dealing with the economy of the country, we will improve. Thank you very much.
What is currently happening in the Department of Public Enterprises is the deliberate ... [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order! Hon Hattingh.
Ms T J MOKWELE: I am going to answer him when I am done.
What is currently happening in the Department of Public Enterprises is the deliberate sabotage and collapse of SOEs so that they can be bought up by the friends and puppet masters of Joshua Door. Internal state capacity and SOEs should be central to the overall growth, development and job creation strategy of the state. There are many examples of why we say this, but there is no better example of this than the People’s Republic of China.
Over the last 40 years China under the guidance and leadership of the Communist Party has experienced economic growth and development unprecedented in human history and according to the World Bank has been able to lift 800 million people out of poverty during that time.
In this development the state played a fundamental role. From state owned banks; state owned energy companies; the ownership, nurturing
and protection of local industry and manufacturing; to the leaps it has made in the last ten years to be better in high-tech technologies, such as artificial intelligence and robotics, the Chinese state has played a central role. That is why we are saying nationalisation and expropriation.
So, instead of privatising SOEs, reducing state capacity, exposing our local manufacturing industry to competition, and the continued financialisation of the economy if we want to create jobs the following must happen: First and foremost is the expropriation of land without compensation to be placed under state custodianship. I will teach you, Hattingh, what we mean by that.
We need to nationalise strategic sectors of the economy including the Reserve Bank, and halt any talk ...
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele, please take your seat. Hon Smit?
Mr C F B SMIT: House Chair, two points: Firstly, the hon member referred to the other member in the House with their name and inappropriately. Secondly, I would like to know whether it is
parliamentary for a member, specifically the member on the podium, to be in political regalia within the House. [Interjections.]
Ms T J MOKWELE: But where have you seen it?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Okay, hon Mokwele, please refer to the hon Hattingh ... [Interjections.]
Ms T J MOKWELE: Hon Hattingh, I will teach you ... [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): No, no no! Give me a chance to rule. Please refer to hon Hattingh as hon member Hattingh.
Unfortunately, hon Smit, there is no specific rule about the dress code. The only thing that we need to do is to dress formal. Continue hon Mokwele.
Ms T J MOKWELE: Thank you very much. You need to read your Rules. What have you seen here that is EFF? You went to the extent of wanting to see what I am wearing inside. Hon Hattingh.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele, continue with the debate.
Ms T J MOKWELE: It is the repetition of those same mistakes ... [Interjections.] What are you saying Chair? What must I do?
The HOUSE CHAIRPERSON (Ms M C Dikgale): I am saying continue with the debate, I am done with the ruling.
Ms T J MOKWELE: Alright ... Why should I open my jacket chief? What do you want to see under? Huh?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele.
Ms T J MOKWELE: Must I continue?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Continue, as long as you feel that you are ... [Inaudible.]
Ms T J MOKWELE: ... economy, including the Reserve Bank and halt any talk of privatisation of SOEs. We need to capacitate the state and do away with outsourcing and the tender system, so that the state has internal capacity to deliver services through the establishment of new state entities like a state owned construction company for the building of infrastructure, and we need a state bank.
But this is all advice we have given before but it seems the ANC is set on making the same mistakes it made in the past. There is a saying that goes, “Insanity is doing the same thing over and over again and expecting different results”.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele, your time has expired.
Ms T J MOKWELE: Thank you very much. We are going to expropriate land without compensation. As the EFF we are ready to take over and that is why we are saying the land must be under the custodianship of the state. Thank you very much. There is no money that I must pay.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Khawula, as long as the member feels that the way she is dressed is presentable; there is nothing we can do about that.
The DEPUTY MINISTER OF ECONOMIC DEVELOPMENT: Hon Chairperson, hon
members of the NCOP, my humble greetings. It is a great honour for me to be part of the debate on the high unemployment rate in South Africa, and ways to curb it.
I would choose a particular angle if I wanted to be very political and start by saying that the government of the ANC has initiated an infrastructure programme that has delivered a gas storage facility in Saldana Bay and that has created a lot of jobs here. I would also say that we are getting an investor to buy Shell oil storage facilities here and create jobs here in Cape Town. I would also say that we have brought a BRT system that we call the My City and that has facilitated transport and created a lot of jobs here.
I would also say that the confidence that we are building through the stimuli’s interventions will see more traffic in shipment here in Cape Town and it will create more jobs.
I would also say that the stimuli’s package is targeting agriculture and includes the facilitation and provision of resources for the drought-stricken provinces. It will change agriculture here in Cape Town.
I would also say that the Presidential Infrastructure Co-ordinating Commission, PICC, has assisted Zandvliet Waste Water Treatment Works to have a water licence that will facilitate and promote investment in the Western Cape and create jobs here. [Applause.] There are many more I can talk about.
However, we cannot politicise the subject because all of us, as government, including our provinces and municipalities here in Cape Town, in the this province and all the other eight provinces, always sit together and look a little bit ahead of where South Africa is supposed to be.
This is a very critical subject and a global challenge that every nation is interested in. In most cases, the rate of unemployment indicators mirrors the extent of socioeconomic performance of each nation state. It also correlates with the state of poverty, hunger, deprivation and levels of inequalities found in the land. So, we cannot play football with this.
The International Labour Organisation, ILO’s, flagship report projects that unemployment will stabilise at about 192 million people of the total global work force. Meanwhile, unemployment and
decent work deficit stay persistently high in many parts of the world.
The report also decries the fact that the global economy is still not producing enough jobs and calls for a need for additional efforts to be put in place, not only to reduce unemployment, but also to improve the quality of work for job holders and ensuring equitably shared growth.
The report further estimates that by 2019, vulnerable employment will be on the rise with an estimated 1,4 billion in 2017 and a further 35 million expected by 2019, while working poverty reduction is very slow. In developing countries, vulnerable workers are estimated by the same report at 75%.
Therefore, when we talk about this matter, politicising the matter does not assist us, but working together and identifying things that will assist us.
Youth under the age of 25 represents 62% of sub-Saharan Africa’s unemployed population. We have to do something about this, because the effect of youth unemployment represents the following: a moral tragedy of lost young lives and livelihoods for young people and
their families; a business loss for employers who struggle to fill entry–level jobs with good, skilled workers; a public policy interest in lost economic potential and a threat to social stability for the country.
Youth unemployment not only limits the earnings of potential and future prospects of a new generation of South Africans, but it also stymies business growth, weaken social cohesion, and puts pressure on government resources.
It is for these reasons that South Africa has come up with a number of initiatives to respond to unemployment challenges and the creation of qualitative jobs.
Because we are in government, we cannot just lament and visualise a future where we have never been. If you are in government, it will give you an opportunity to share what South Africans have been struggling with since 1994 until today. I will show you the efforts and how we responded to this.
Between 1994 and 2008, the country focussed on bringing social stability by introducing a number of laws aimed at the transformation of the South African society. It has also adopted
economic stabilising policies that have seen the economy growing beyond 5%. Unfortunately, at that point, it was jobless growth.
After the 2008 global financial crisis, South Africa came together again and we rallied to look at the challenges that South Africa is facing. As the ANC and leader of society, we rallied all stakeholders ...
HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Oliphant, you know that you cannot do that. You are drowning the speaker.
The DEPUTY MINISTER OF ECONOMIC DEVELOPMENT: ... who adopted a
growth path, which was anchored by infrastructure development. It identified seven growth drivers. In 2012, we rallied the nation to adopt our own development plan and we adopted the National Development Plan.
As part of strengthening both the NDP and National Growth Plan, the social partners in Nedlac have adopted a number of accords that are assisting us to move forward. Amongst the social accords, a youth employment accord was adopted in 2013. I hear members talking about things that are supposed to be done. The youth accord indicated to us that we have to focus on development of skills through education
and training. We have to focus on entrepreneur development. We must have set asides and initiatives to innovate for the future. We must also look at the public-sector and private-sector intervention areas.
Since then, we have seen the employment increasing by 13,6 % to
6 million for young people. However, this has not been enough to counter the effect of the 6,7% growth in labour force - 9,9 million
resulting in the increase of 2,8% of youth unemployment.
Since the growth path, about 2,7 million jobs were created, yet unemployment increased by about 1,6 million. This again indicates the global challenge that has been identified by the ILO that all of us are not carrying out tasks and making an effort to counter unemployment.
In 2018, the President once more rallied the government collective to develop the stimulus towards the resuscitation of our economy and generating more jobs. The stimulus cut across job drivers that we adopted in 2010, policy reviews, acceleration of implementation of some of the strategic initiatives, as well as reviewing SOEs to serve as economic development and job creation drivers.
A job summit was convened, made up of a delegation from all stakeholders like business, government, civil society and organised labour. All stakeholders committed to a number of initiatives towards creating about 260 000 jobs. Included in the commitment, is the investment drive targeted at $100 billion by the President. To this end, an investment conference was convened and 1 500 delegates and leaders came and believed that South Africa will grow because they will plant their money here. They have confidence in our President and the leadership of this country. They believe that these investments will take us forward. We are confident that the implementation of all the commitments will take our country forward.
The department will continue to co-ordinate the efforts of other departments, provinces and municipalities to ensure alignment of efforts. We are happy with the province of the Western Cape and its municipalities and other provincial leaderships who are assisting us in term of aligning to ensure that the stimulus is working.
If we want to see development, we must know that education, training and skills are important. We need to beneficiate our primary commodities. We need to promote industrialisation, entrepreneur development, SMMEs and the development of co-operatives. Local
procurement is also one of the key goals. Partnership for industrialisation is also important.
As a department, we will continue to use the competition authorities and ITEC to promote inclusive growth and new entrance into the economy.
Financial support for development is very important. During the conference, the National Development Bank committed to give
$2 billion towards financing of development in South Africa. In the 2017-18financial year, IDC approved R16,7 billion, with disbursement standing at R15,4 billion, estimated to create 30 000 jobs. The IDC has contributed R150 million towards saving a 60-year-old company that has actually collapsed this year and lost a lot of jobs. One of the re-employed, Gugu Mlotshwa, said and I quote:
When the company closed down, we never thought it would be saved. We really want to thank our government for what they have done.
We would like the company to grow so that it can accommodate all employees who lost their jobs.
We would like to say to Gugu that, with more interventions from the IDC and other development finance institutions, DFIs, the
implementation of the job summit, and the tightening of monitoring of imports, more jobs will be created and more of her colleagues will join her. I would not want to talk about the African investment commitment because it is actually the cherry on top of what we want to do. I thank you.
HOUSE CHAIRPERSON (Ms M C Dikgale): Hon members, order. Hon Oliphant, please don’t drown the House.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Thank you very much, hon Minister. Hon members, order! Hon Oliphant, please don’t drown the House, please! Hon members, allow me to welcome the newly sworn in member, hon Dion George, who is replacing the hon member, Londt, who has since been in the National Assembly. Hon member, Dionne, welcome to our House. [Applause.] Thank you very much. We continue with the business of the day. Let me recognise hon Prins.
Ms E PRINS: Chairperson, hon Deputy Minister of Economic Development, hon members, hon special delegates, ladies and gentlemen, according to the National Development Plan, “achieving full employment, decent work and sustainable livelihoods is the only way to improve living standards and ensure a dignified existence for
all South Africans. Rising employment, productivity and incomes are the surest long-term solution to reducing inequality.
This will be achieved by expanding the economy to absorb labour and improving the ability of South Africa’s people and institutions to respond to opportunities and challenges. The ANC-led government began to lay the foundations of stronger inclusive growth after the President’s state of the nation address in February and is built on six pillars.
The first is through the package of structural reforms that addresses constraints to grow covering communication, energy and tourism. These measures immediately unlocked fresh investment and economic output to boost gross domestic product, GDP, and jobs; the second pillar is through demand side measures to boost local procurement through public spending, commitments by private businesses and tougher enforcements at our ports of entry to crack down against illegal imports.
The third pillar is through improving governance and institutions, and anticorruption programmes to clean up public administration and make sure that the state is there to serve the people; the fourth pillar is through building deeper and bigger markets for our goods
and for our services. The signing of the continental free trade agreement by the President in July is an important step towards recreating a market of one billion consumers that are factories.
The fifth pillar is through transformation of the economy to unlock the energy and the enterprise of small, medium enterprises of youth and women in South Africa; the sixth pillar is through investment. The investment Conference in October with domestic and foreign investors already delivered positive results, seeing the encouraging rise in private investment in the last quarter of 2018.
Manufacturing continues to be a major sector of South Africa’s economy, providing a significant base for skilled employment opportunities. Through its industrial Policy Action Plan, Ipap, government seeks to transform the structure of South Africa’s manufacturing base through creating new dynamic levels of competitiveness in the sector.
We will redouble our efforts to change the colonially defined structure of our economy as a producer and exporter of primary commodities through industrialisation and moving up value chains. Secondly, we will intensify efforts to promote greater inclusion of
historically disadvantaged black people in positions of ownership, management, leadership and control.
The Industrial Policy Action Plan to support industrial development includes: Stronger emphasis on the most job creating sectors and industries such as clothing and textiles, agro-processing, and component manufacturing; redoubling our efforts to raise domestic demand for locally manufactured products through localisation of public procurement ... [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Prins, please take your seat! Hon member, Mokwele, why are you standing?
Ms T J MOKWELE: I just want to check whether the speaker will be able to take a question and explain to us, how will they be doing the industrialisation? ... [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele, we need to check with the member first if ever she is ready to take a question. Are you ready to take a question, mama?
Ms E PRINS: No, Chairperson!
The HOUSE CHAIRPERSON (Ms M C Dikgale): She’s not ready, hon Mokwele!
Ms E PRINS: ... and persuading the private sector to also support localisation and local supplier development; building a stronger system of industrial finance and incentives to support and secure higher levels of investment in the productive sectors of the economy and, beginning to reposition the economy to prepare for the Fourth Industrial Revolution.
Advancing transformation in the tourism sector is important. The popularity of South Africa as a tourist location highlights the need for more streamlined support with the emphasis on the security of tourists and the visa policies of the country. Chairperson, government measures to support small businesses and cooperatives have been scaled up to ensure that their impact is felt across the economy.
The stimulation and protection of township-based economic activities is also important in this regard. Access to finance is one of the key constraints faced by start-ups or an existing small, medium and micro enterprise, SMME, entrepreneurs who wish to diversify or explore a new opportunity.
Time and time again these starts-ups, young people, people living with disabilities and women in particular, tell us of their frustrations with banks and Development Finance Institutions, DFIs, who refuse to support them because they are perceived as high risk ventures. Therefore, we are pleased to announce two new streams of finance, in which we have the power to define the criteria and conditions, which I can assure this House will be more progressive and enabling.
A core tenant of government’s small business policy is the provision of finance to start-up enterprises and those that struggle to get funding from commercial finance institutions. Since its establishment six years ago, Small Enterprise Finance Agency, Sefa, has financed 286 000 SMMEs and cooperatives to the value of
R5,5 billion. The provisional 2017-18 financial year loan performance indicators show that Sefa disbursed R1,2 billion to 45 035 SMMEs and cooperatives and facilitated 54 144 jobs.
Integral to its mandate, Sefa has during the last 12 months provided targeted finance support to the following: Forty four thousand seven hundred and ninety two black-owned enterprises to the value of
R836 million; 9 229 youth-owned enterprises to the value of
R191 million; 44 116 women-owned enterprises to the value of R403 million. [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon member, Prins, can I address hon Mokwele? Hon Mokwele, the hon member indicated earlier on that she is not ready to take a question.
Ms T J MOKWELE: I am standing on a point of order!
The HOUSE CHAIRPERSON (Ms M C Dikgale): What is the point of order?
Ms T J MOKWELE: You know, there is a problem with numbers in the ANC. So, is it R100 million or thousands?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Is that a point of order, hon Mokwele?
Ms T J MOKWELE: What are you actually saying?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele, take your seat!
Ms T J MOKWELE: Can you request hon De Beer to assist you with numbers? Thank you!
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele, take your seat! The hon member said she is not ready to take a question!
Ms E PRINS: The National Gazelles Programme, targeting high potential and high growth businesses remains one of our flagships of which we are extremely proud of. Currently, the programme is supporting 80 companies and will over the course of three years assist them to grow and access new markets.
Me E PRINS: Werksgeleenthede vir jong mense is ’n prioriteit, insluitend effektiewe publieke werksgeleenthede en programme, internskappe, plasing en aankope van jeugeienskapondernemeings en jeugentrepreneursprogramme. Groter, effektiewe gebruik van die Nasionale Jeugontwikkelingsagentskap is besig om groter steun te verleen aan jong mense in die landelike omgewing, en onder werkersklas jongmense in stedelike gebiede. Jeugondersteuning moet in die telkaart opgeneem word vir ondernemings en die wie staatsgoedere en dienste aankoop.
Die Nasionale Jeugontwikkelingsagentskap het reeds ’n waardeketting vir entrepreneurskap gevestig wat vaardigheidsontwikkeling, opleiding, ontwikkeling van finansiering, mentorskap, ondersteuning en markkoppeling insluit.
Meer as 2 500 start-up besighede is bevonds, wat meer as 10 000 werksgeleenthede geskep het.
’n Verdere 25 000 jongmense is in posisies geplaas gedurende die afgelope drie jaar.
Government has done much through its public employment programmes and investment in infrastructure to give priority to young people and women. It introduced the Employment Tax Incentives to encourage companies to employ more young people. Government, business, labour and civil society involvement in the Jobs Summit - and I think that the hon Deputy Minister also referred to that - saw extraordinary measures to create jobs on a scale that we have never seen before in this country. [Time expired.] Thank you, Chairperson. [Applause.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Thank you very much, ma!
Mr F ESSACK: Julle will nou weer hê ek moet Afrikaans praat! [Gelag.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order, hon members!
Mr F ESSACK: Hon Chairperson, hon members and fellow South Africans, the struggle in 1976 ... I hope the Minister is in the House ...
Where did the Deputy Minister go to? He’s gone. Okay. He hit a duck!
The HOUSE CHAIRPERSON (Ms M C Dikgale): Please continue with the debate, hon Essack.
Mr F ESSACK: Yes, hon Chair. The struggle of 1976 — for my fellow South Africans — was about personal and political freedom.
Today’s struggle remains the struggle for jobs and opportunities. Very sadly, many of you have come here and have spoken about the last 25 years ... [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order! Hon Essack, please take your seat.
Ms T J MOKWELE: The struggle of 1996 was a struggle for the language of Afrikaans to be scrapped from the system of education. That was the ...
The HOUSE CHAIRPERSON (Ms. M C Dikgale): Hon Mokwele, the hon member
... [Interjections.] Hon Mokwele, you know you may not just stand up and start doing what you are doing. That is totally out of order.
Continue, hon Essack.
Mr F ESSACK: Apology accepted, hon Mokwele. You’ve got to take these chances.
Nevertheless, let’s just get down to the crux and the facts of the matter at hand.
It is then the case that, after 25 years of our prized democracy, our people – young and old – are still provided with inadequate education that destroys the opportunity for them to gain access to the job market, and to a quality, independent future with security and peace for all of us as a nation that aspire to it.
Nevertheless, the youth of South Africa remain the future of the country, and, of course, of our revenue income. Let’s not lose sight of that.
Yet, half of this country’s most productive work force remains unemployed. Job creation remains the only sustainable way for our country to remain economically viable and, of course, attract investment. The key to job creation is creating a prosperous economy, not, of course, creating a mammoth government destined for failure and corruption, which, of course, we are living with day to day.
Therefore, I say to you, my fellow South Africans, without a growing and vibrant economy, we continue to dismally fail to address the injustices.
Everyone understands that small businesses remain the catalyst for any free-market economy in creating jobs. But through the ANC’s failing economic policies, small businesses are crumbling across our nation. If this sector is failing, where then, I must ask, will the jobs come from. Eskom and the SABC have announced that they are shedding jobs. Why, Standard Bank announced just yesterday that they will be cutting some 500 jobs from their IT department.
If the ANC cannot even create and keep jobs in this swelling public sector, while presiding over a country with a weakening private sector, what use then are they to the people of this beautiful nation? I say to you, the ANC remains all about big government, big business and big labour, with the poor and unemployed way down in the pecking order.
It therefore remains that it is time for this ANC government to simply admit that their policies are just not working anymore. Unfortunately, for many South Africans, Barack Obama has a better chance of becoming US President again than the ANC making such an admission. I trust you will digest that, hon De Beer. [Interjections.]
It seems so convenient for Ministers such as hon Bathabile Dlamini to have high paying jobs where they can afford all the liquor that they desire, but the average unemployed South African cannot even afford a loaf of bread. It is really a very sad state of affairs, and we have to live with it.
The time has come for the ANC to suck up their pride, step aside and let new leadership clean up their mess. The DA in the Western Cape as well as in the various metros where we either govern or lead a
coalition – hon Makoe, listen carefully – has proven, beyond doubt that we are capable of being that new leadership. [Interjections.]
’n AGB LID: Wat het julle gemaak?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order! Hon Essack, take your seat.
Mr F ESSACK: Hon Mateme is in the House!
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Essack! Take your seat. Before I allow you mama ... hon Oliphant, no. Yes, ma’am?
Dr H E MATEME: Chair, is the hon member at the podium prepared to take a question?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Are you prepared to take a question, hon Essack?
Mr F ESSACK: I promise you, I’ll take this question, if you stop the clock.
The HOUSE CHAIRPERSON (Ms M C Dikgale): He’s not ready, hon Mateme.
Mr F ESSACK: Stop the clock and I’ll take the question. But I also want to finish my speech. Please, hon Chairperson, I appeal to you: stop the clock so that I can take the member’s question.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Essack ... hon ... [Inaudible.] please take your seat. He’s not ready.
Mr F ESSACK: Well, I tried very hard. Honestly, I tried very hard.
So, therefore, I say to you, my fellow colleagues ... to the ANC — move aside. The people of South Africa are going to fire you in the next five or six months. Believe you me, the time is come.
The hon Deputy Minister is not in the House. Now, let’s be honest, the hon Deputy Minister’s defence has been pathetic. He came and stood here. Did he honestly speak with conviction, like a true Minister, leading like a statesman? Absolutely pathetic defence! I wanted to ask him ... he’s not here ... what honestly has improved? What honestly has improved? He talks about the economic stimulus. He talks about economic stability. When, then, is this country going to move economically forward and have some stability?
Hon Makue is writing with passion, but he realises ... He talks of the Youth Employment Accord. What youth employment accord? More youth remain unemployed in this country than ever before and you come here and you stand here and blow your trumpet about a youth unemployment accord. Absolute nonsense!
Finally, how come there is a continued shortfall in the country’s revenue income? There is no stimulus. [Interjections.] Stop dreaming! The ANC has failed South Africa! [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Essack, take your seat. Hon Mokwele, why are you standing?
Ms T J MOKWELE: Is it parliamentary to use the word “nonsense”?
Mr F ESSACK: Hey, you people that always talk nonsense ...
The HOUSE CHAIRPERSON (Ms. M C Dikgale): Hon Essack!
Ms T J MOKWELE: I’m not speaking to you! Relax!
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele, please take your seat. I want to make a ruling.
Moh T J MOKWELE: ke botsa Modulasetilo, wena ikeetle [Tsenoganong.]
MODULASETULO WA NGWAKO (Moh M C Dikgale): Dula fase, mma. Ga go na bothata lefokong lela a le šomišitšego.
It is parliamentary. Continue, hon Essack.
Mr F ESSACK: You know, I’m so tired of these members’ nonsense! They don’t even understand that nonsense can be used in the House! [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Essack!
Mr F ESSACK: We are debating, hon Chair!
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Essack!
Mr F ESSACK: This is a debate! Fellow South Africans are listening to us. [Interjections.] This is unfortunately the nonsense I have to contend with in this House. [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order! Order!
Mr F ESSACK: Nevertheless, so be it. The hon Prins came here ... [Interjections.]
Eish, man ... [Laughter.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Essack ...
Ms T J MOKWELE: Just relax; we are taking land. [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele ...
Ms T J MOKWELE: Just relax. We are taking land.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele ...
Ms T J MOKWELE: Just relax.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele!
Ms T J MOKWELE: Shock absorbers ...
... o di tsenye, o ikeetle [Tsenoganong.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Mokwele! Hon Essack, continue.
Mr F ESSACK: This is great, Chairperson. I don’t know. She’s talking about land; we’re talking about unemployment! It shows you, she’s not sure which debate she’s in!
Nevertheless, the land issue is going to create a total disaster for unemployment. But, be that as it may... [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Order, hon Mokwele, order!
Mr F ESSACK: Hon Chairperson, who is at the podium? Me or hon Mokwele? Make up your mind, Chairperson. [Interjections.] Thank you so much.
Hon Mokwele, digest! I am at the podium. I’m calling the shots right now, not you.
So, hon Prins came here. What did she say? [Interjections.] What did hon Prins say? She said zilch! Absolutely nothing! It was pathetic that the ANC has to offer this quality of speaker! [Interjections.]
But nevertheless, as it may be, I want to quite frankly say to the hon member from Limpopo, no sir, with due respect, you are a quality individual and I admire you admire and respect you, but the economy of South Africa has never and has not grown by 3%, as you came here and blurted out to South Africans. Zero point five per cent may be a realistic figure. Zero point seven per cent may be a realistic figure ...
... maar 3%? Uit die kwessie uit! Hierdie is Suid Afrika.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Hon Essack ...
Mr F ESSACK: Yes, Chairperson?
The HOUSE CHAIRPERSON (Ms M C Dikgale): Your time has expired.
Mr F ESSACK: Thank you, my fellow South Africans! It has been great! I really loved it! I appreciate it! Thank you so much.
Mr E MAKUE: Chairperson and members, the contribution that I will make to this very important debate is trade and investment to boost inclusive growth and development as a way of achieving job creation.
I join in thanking the hon Vusi Magwebu for initiating this debate. I am however disappointed at his contribution. It was anticipated that he would provide insights into ways of turning the tide by growing the economy and creating jobs. Sadly, though not surprising, he missed the point and opportunity. The same applies to the hon Cathy Labuschagne, as well as the hon Essack. [Interjections.] The Archbishop Desmond Tutu taught very many of us humble people in this country that you don’t win an argument by raising your voice. This is indeed not a populous debate about the Western Cape, so let me deal first with those remarks that were made by the opposition parties.
The hon Magwebu builds on the farcical notion that unemployment is created by the ANC.
An HON MEMBER: Exactly!
Mr E MAKUE: It is untrue. Economic decline is what results in unemployment. This government, led by the ANC, is committed and has
demonstrated how we are restructuring our economy in a global and in an African context. [Interjections.] The hon Rayi aptly indicated to us the importance of analysing our difficulties. We analyse the extended definition of unemployment and take action befitting of all people in all provinces and not just one province of the country. We know what the main ...
The HOUSE CHAIRPERSON (Ms M C Dikgale): The hon member Labuschagne and the hon member Oliphant, please don’t drown out the speaker at the podium.
Mr E MAKUE: Chairperson, we know what the main categories of unemployment are, and we also know why. The ANC will do all within its means to address joblessness and grow an economy that creates sustainable and decent jobs.
The HOUSE CHAIRPERSON (Ms M C Dikgale): The hon member Mbambo- Sibhukwana, you are allowed to heckle but not to drown out the speaker. Please.
Mr E MAKUE: We all know who owns the economic power in this country. It is not the ANC that owns economic power. The hon Labuschagne talks about the New Dawn and raises questions about the
interventions of President Ramaphosa. I will address that. Then she brings in land expropriation and shows the true colours of the DA. [Interjections.] Important to them is the question of title deeds. Almost as a contradiction, she brags about how they are giving people title deeds but says that no people will not get land. She knows that when we talk about land expropriation, we are dealing with something that is fundamental to the economic inequalities in our society. [Interjections.]
The ANC does not speak like snakes with two tongues.
Ms C LABUSCHAGNE: Chair, I would like to know if the hon member would take a question on expropriation.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Are you ready to take a question, hon Makue?
Mr E MAKUE: No, Chairperson, because this debate is not about expropriation.
The HOUSE CHAIRPERSON (Ms M C Dikgale): Thank you. Hon Labuschagne, take your seat. He is not willing. Order! [Interjections.]
Mr E MAKUE: This debate is about unemployment. Complaining and complaining and complaining don’t help the DA. Our population, our citizens, deserve more than complaints. They need interaction, and they need to have us, as government, address the concerns they have. Instead of addressing the needs of our people, when I earlier on presented the motion on the University of the Western Cape and the tremendous progress they have made, it was a DA member who voted against it because they don’t want black people in this country to make progress. [Applause.] [Interjections.]
Our MEC, the hon Tooley from Limpopo, put the emphasis on a very important strategy of the ANC – youth employment. In addressing the unemployment of our young people, we will be able to deal with the challenges of our future. The private sector, he correctly said, creates fewer jobs than the informal sector. We need to look at that.
The hon Deputy Minister Masuku told us about the interventions being made by the Department of Economic Development, and we welcome that. The hon Essack comes to the podium and talks to me. He doesn’t talk to all of us, and he says, please show me what you said. However, I am asking him to please show us that what he has captured here, what he has said here, is captured in the DA policies – talk with forked
tongues, like snakes! [Interjections.] Small businesses in Johannesburg are being attacked by the DA Mayor of the City of Johannesburg for bringing Ebola into our country. What xenophobia can you get that is worse than that? It is the ultimate form of discriminating against Africans, and they are doing it also against Africans in South Africa. They need to show us, in their leadership, how representative the DA is of South African society. Please change your leadership to be more representative of South Africa. Then you don’t have to go into coalitions and then find yourself unable to govern. [Interjections.]
We members of the ANC and leaders in government know all too well that we dare not linger. [Interjections.] Then again, we are the first to acknowledge in humility that with freedom come responsibilities. The long walk to freedom started by the generation of Tata Madiba and others has not ended. That is why the ANC, the ruling and the leading party in government, is doing the following.
Firstly, we have had a very successful presidential Jobs Summit. The social partners in that jobs summit, who are not necessarily members of the ANC, recognise that many of the economic enablers have been committed, and they are supportive of the growth of firms of co- operatives, of small, medium and micro enterprises, as well as
worker enterprises across all sectors of the economy. The deputy director-general for labour policy and industrial relations in the national Department of Labour recently told the portfolio committee of this Parliament that it was estimated that the interventions from the Jobs Summit will create an additional 275 000 jobs a year. [Interjections.] Our employment figures compel us as a nation to make the necessary interventions to turn things around. We are not coming to the podium to say we have arrived. There is work to be done. That has been emphasised by the hon Masuku.
The agreement on the African free trade area that we will bring to this House next week is another intervention that we are making, saying let’s co-operate with other countries on the African continent so that we can create jobs and deal with joblessness. The African Development Bank convened the inaugural Africa investment conference on 7 to 9 November 2018, and speakers before me indicated what happened – the outcomes and the successes of that conference.
We know about the amounts that have been generated already. The Industrial Development Corporation as well as the African Development Bank this week signed a US $100 billion loan agreement that will create an additional 15 000 jobs. [Interjections.] [Applause.]
At a meeting of the heads of missions that was convened by the Department of International Relations and Co-operation earlier this month, we shared with our ambassadors this government’s strategy as to how our missions abroad would contribute towards creating additional investment in this country that will drive this economy so that it can create more jobs. [Interjections.]
We are in a period of a new dawn, a period of hope for a better tomorrow. In our response to the technical recession we face as a country, our President has outlined an economic stimulus package. The recently launched R15 million Phuta Dichaba industrial park, as well as the other industrial parks and special economic zones were established by this government, and we have one here in the Western Cape too. It is creating jobs that we could never have imagined it would.
Mr W F FABER: Tell us about Eskom!
Mr E MAKUE: Our international trade and advisory council intervened in the sugar industry in terms of the Dollar-Based Domestic Reference Price, and we are creating jobs for people that would have been vulnerable there. We are also encouraged by the attitudes of delegates to the Africa investment conference and their achievement.
We are not working alone. The ANC is practising revolutionary morality. We are working with the Zanele Mbeki Development Trust, with the South African Women in Dialogue, and if you would mind listening rather than heckling, you would know that there is a Flower of the Nation conference happening as we speak today. In that conference, there is a particular focus to look at creating jobs for women who are the majority on our continent. We are convinced that our economic interventions will ultimately begin to reduce the unemployment challenges facing this country.
Chair, my time has run out. I will not linger any longer. As Madiba taught us, the ANC, in humility, accepts the responsibilities of freedom as per the example of Mama Sisulu. We will create jobs. [Applause.]
Mr L V MAGWEBU: Hon Chairperson, I just want to quickly welcome and appreciate Mama Modise. Thank you for coming, Mama. We’re glad to see you. We survived your absence. We didn’t kill each other. It wasn’t easy, I can tell you that.
I just want to appreciate and welcome the inputs, the contribution, by the speakers and everyone present. Now, hon Rayi, I just want to appreciate your honesty, because with everything that you gave as
the background and all the issues you raised, you never rebutted for one second the issues I raised in that the biggest nightmare and the biggest hindrance to employment and job creation is the corruption that is embedded in the ANC. You have never rebutted that and that shows and demonstrates your honesty. It is estimated that we have lost R100 billion through state capture, and this is money that could have been used for job creation and skills development and to fund small businesses. The ANC stole that money. [Interjections.]
Hon Labuschagne, I agree with you. The ANC cannot be trusted with the land, nor the EFF, because there’s a saying in life: If you cannot be trusted with less, how can you then be trusted with more?
Hon MEC Tooley from Limpopo, you have lamented here and raised all the issues of poor state education, the necessary or requisite skills that are lacking – and raised all the issues of the difficulties we are facing. But you speak like an outsider, sir. You are an insider. You are in the ANC. Let me give you this advice: If the ship is sinking, jump ship. [Laughter.]
Now, hon Prins, you have raised issues on the National Development Plan, the NDP, the corruption, the lack of leadership, the need for integrity, and the six pillars of the NDP. You can have 10 pillars;
you can 15 pillars. The ANC can’t be trusted in implementing one pillar. Shame on you, ANC! It is incompetent; it is corrupt. [Interjections.]
Now, I want to address jointly the Deputy Minister, in absentia, and the hon Makue as I conclude. Hon Makue, you have raised the issue that we have not given you substance. The hon Masuku, the Deputy Minister, was here. He didn’t disappoint. He was vague and absent as always. He was defending the indefensible. Well, I have advice for both of you, hon Makue and Deputy Minister Masuku: Dr Chuba Okadigbo once said – listen to this soberly - I quote: “If you are emotionally attached to your tribe, religion or political leaning to the point that truth and justice become secondary considerations, your education is useless, your exposure is useless. If you cannot reason beyond petty sentiments, you are a liability to mankind.” [Interjections.] [Applause.]
Hon Mokwele from the EFF, you raised a very pertinent issue. What you said was very profound in that year in and year out we have assisted the ANC; we have put forward solutions given the problems we are facing. Guess what? They slumbered; they went to steal as they always do.
Now, all that is left is to unseat the ANC. The ANC is incompetent. The problem in South Africa is the ANC problem. Until the ANC is unseated, we will still be dealing with these problems.
Ladies and gentlemen, hon members, as we go home these are the pictures and the images we have to see. This is what we are confronted with every day. These are our brothers; these are our sisters that the ANC government has failed. [Interjections.] Once again, shame on you, ANC. Shame on you.
Hon Chairperson, as I conclude I want to say: The ANC has been given enough time. The ANC has failed dismally. It is time that it is unseated. Thank you everyone, and may God bless. “Nkosi Sikelel’ iAfrika.” [Lord, bless Africa.] [Applause.] [Interjections.]
The HOUSE CHAIRPERSON (Ms M C Dikgale): Thank you, hon Magwebu. Order! Order! Order, hon members! Order! Order, hon Prins. Order, hon members! Hon members, I am waiting for you to lend me your ears. [Interjections.] Sure. Thank you very much. That concludes the debate and the business of the day. I would really like to thank the special delegates from Limpopo and the Eastern Cape, and our Deputy Minister, in absentia, who managed to come and be with us in the House. I would also like to remind the members about the briefing on
Taking Parliament to the People to the province of Gauteng, which will take place immediately after we have adjourned the House.
The Council adjourned at 16:35.