Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 13 Nov 2012

Summary

No summary available.

Minutes

UNREVISED HANSARD

TUESDAY, 13 NOVEMBER 2012

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

The Council met at 14:04.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

SHORTAGE OF INTERPRETING STAFF

(Announcement)

The CHAIRPERSON OF THE NCOP: Hon members, I have been informed by the Secretariat that there is a shortage of “entrepreneurial” staff today. I don’t know whether this is correct English – I think it’s supposed to be “interpreting” staff.

I don’t know whether they’ve gone on leave or somewhere else. They’ve just informed me now, as I have come from another meeting. However, I think there will be interpreting into some languages, but there will be no interpreting services for isiZulu and four other languages. Nonetheless we will try to find out what happened and why.

NOTICES OF MOTION

Mr H B GROENEWALD: Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the DA:

That the Council —

notes that about 40 mineworkers barricaded the road leading to the Xstrata Kroondal Mine near Matebeleng outside Rustenburg yesterday, as an impasse about salaries with mine management continued;

further notes that the police had to use rubber bullets to disperse the group;

notes that the management of the mine is considering closing the mine temporarily as some people are intimidating workers who have reported for duty, and are also threatening to attack them at their homes;

further notes that they want to stop mining operations at Khusela Shaft, where they have barricaded roads using stones and tree trunks;
records that on Sunday night at 10 pm a truck belonging to the mine was torched by unknown people at the mine; and

finally notes that the DA has asked the Cabinet urgently to get involved in these serious labour issues at the mines and on the farms in South Africa to prevent another Marakana.

Mr B L ABRAHAMS: Chairperson, I hereby give notice that at the next sitting of the Council I shall move on behalf of the DA:

That the Council —

notes that the residents of Ward 58 went out to vote with confidence for the party of their choice;

further notes that the DA did not use any form of intimidation to win votes; and

finally notes that the residents of Ward 58 showed that honesty and integrity are the best policy for the party of the future.

Mr T M H MOFOKENG: Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the ANC:

That the Council —

notes and debates the failure of the DA-led City of Cape Town to release the report on the investigation into tender irregularities relating to the decommissioning of the Athlone Power Station as legal opinion is still being sought to ensure that proper legal processes were followed;

further notes the claim of a legal opinion being sought is nothing but an excuse intended to stall the release of the report and to conceal its contents from the public;

notes that the irregularity rests in the fact that the tender of millions of rands was awarded to a company that was unduly advantaged over other bidders by the city and, as such, awarding the tender to this company was irregular and unlawful regardless of whether proper legal processes were followed or not; and

calls on the Mayor of the City of Cape Town to release the report immediately, while furthermore calling on the Minister for Co-operative Governance and Traditional Affairs to intervene to ensure that the report is made public.

Mr K A SINCLAIR: Chairperson, I hereby give notice that at the next sitting of the Council I shall move on behalf of Cope:

That the Council -

notes the severe impact that the proposed increase of 16% per annum in electricity tariffs suggested by Eskom would have on the economy of South Africa;

further notes the negative effect it will have on inflation targets and the subsequent ripple effect on consumers and ordinary citizens of South Africa; and

finally notes the adverse impact it would have on South Africa’s prospects for industrialisation and the subsequent dire effect on job creation and unemployment.

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

That the Council —

notes that 11 November is known as Remembrance Day throughout the Commonwealth countries;

further notes that on the 11th day of the 11th month 1918, guns on the Western Front fell silent. The carnage of World War 1 had come to a close, leaving millions dead and even more suffering the effects of the war;
recognises that the red poppy is now international symbol for remembrance of the dead of both World Wars and all other wars and internal conflict; and

affirms that we shall remember them.

Mr M W MAKHUBELA: Chairperson, I hereby give notice that at the next sitting of the Council I shall move on behalf of Cope:

That the Council —

notes that there is the ever-increasing spectre of strikes in the agricultural sector, and we are concerned it might spread to the manufacturing sector if not contained effectively; and

further notes the threat to society posed by rioting turning into mob rule as bigger unions lose their grip on the collective bargaining process, while communities are affected by forced unemployment.

SHOCKING STATE OF DISTRICT HOSPITAL IN BRITS, NORTH WEST

(Draft Resolution)

Ms D Z RANTHO: Chairperson, I move without notice:

That the Council -

notes with shock and concern the poor state of the district hospital in Brits, one of the main hospitals in the North West Province, where issues vary from poorly ventilated prefabricated buildings being used as wards to the body of a deceased man covered in blood lying exposed to other patients and the public for more than 15 hours, the lack of an operating theatre, a paediatric ward and a mortuary, while wards are used as storage places for gas cylinders, there are critical posts not being filled, and medical equipment and the like are either in a poor state or lacking;

further notes that although the new hospital is under construction and scheduled to be completed in 2013, this is no excuse for the poor and shocking state of affairs at the hospital; and

takes this opportunity to call on the national and provincial Departments of Health to intervene and to take remedial steps as a matter of urgency.

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

FARM WORKER STRIKE IN DE DOORNS

(Draft Resolution)

Ms A N D QIKANI: Chairperson, I move without notice:

That the Council -

notes that the Minister of Agriculture, Forestry and Fisheries, Ms Tina Joemat-Pettersson, held an urgent meeting in Pretoria yesterday with representatives of the CCMA, AgriSA and others to discuss the strike by De Doorns farm workers and plans to meet representatives of farm workers in Cape Town today;

further notes that last week protesters in De Doorns blocked the N1 highway in the area and set vineyards alight, as the De Doorns farm workers are demanding payment of R150.00 a day; the situation in De Doorns is still tense and there are fears that these actions will escalate; and

takes this opportunity to express its support for the Minister’s initiative to try to quell the violent situation in De Doorns by bringing the affected parties to the negotiation table and calls upon everybody in the area to work towards resolving the matter.

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

EXCESSIVE GOVERNMENT SPENDING ON CONSULTANTS, LEGAL COSTS AND SERVICES

(Draft Resolution)

Mr M P JACOBS: Chairperson, I move without notice:

That the Council -

debates the use of consultants in the Public Service;

notes with the utmost concern that government departments have spent R11 billion on consultants, legal costs and outsourced services during the past financial year and that this trend indicates the growing reliance by departments on outside assistance, mainly as a result of the high vacancy rate in some departments, as well as a lack of internal capacity;

further notes with concern that despite this spending on consultants and despite spending R4,1 billion on salaries of senior managers, national departments have only reached 52% of their performance targets; and

takes this opportunity to call on the Minister for the Public Service and Administration and all members of the Executive to address this state of affairs as a matter of urgency and forthwith to fill all vacancies with qualified and competent officials.

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

KILLINGS OF AND ATTACKS ON WOMEN

(Draft Resolution)

Ms B P MABE: Chairperson, I move without notice:

That the Council -

notes the killing of a 19-year-old woman in Samora Machel Informal Settlement in Cape Town, allegedly because of her sexual orientation;

further notes that the woman, who was fatally stabbed allegedly for being a lesbian, and another, who was wounded, were part of a group of four women who were attacked on Friday night by four men after an argument had ensued; and

takes this opportunity to convey its sincere condolences to the family and friends of the deceased during this difficult time, condemns in the strongest terms this senseless killing and calls upon the authorities to do everything in their power to bring the perpetrators to book.

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

MINING COMPANY IMPLEMENTS COMMUNITY PROJECTS

(Draft Resolution)

Mr M C MAINE: Chairperson, I move without notice:

That the Council -

notes that Sishen Iron Ore Mining Company has, through its Community Development Trust, implemented or planned a number of far-reaching community development projects, valued at more than R 550 million, to empower its mining communities in the Northern Cape and Limpopo, and to improve their lives;

further notes that the objective of these projects is to benefit the mining communities and to secure their future beyond the life of the mines and, in particular, to ensure that such communities become economically active and empowered; and

commends the company on its commitment in this regard and calls on it to ensure that the projects are implemented and sustained, and also calls on government and the Department of Mineral Resources to closely monitor this.

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

IRREGULAR SPENDING OF NORTHERN CAPE PROVINCIAL DEPARTMENTS

(Draft of Resolution)

Mr T E CHAANE: Chairperson, I move without notice:

That the Council -

notes with concern that, according to the report of the Auditor–General, the irregular spending of provincial departments and public entities in the Northern Cape legislature amounted to R2,4 billion in the 2011-12 financial year, which is almost double the amount of irregular expenditure in the previous financial year, while no department or public entity has received a clean audit;

further notes with concern that 842 government contracts were awarded to employees or other state officials, which is a sharp increase from the 38 contracts that were similarly awarded during the previous financial year, and that the root causes of the poor financial audit outcomes range from too much reliance on consultants to unqualified staff, vacancies, lack of proper systems, inadequate discipline, etc; and

takes this opportunity to call on the provincial government to urgently implement a turnaround strategy, including proper discipline and control mechanisms, and to ensure that appropriate disciplinary action and other steps are taken against officials who have failed to perform their duties properly and appropriately, whether negligently or not.

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

SYNDICATE OF PUBLIC OFFICIALS DEFRAUDS SOCIAL GRANT SYSTEM

(Draft Resolution)

Mrs R N RASMENI: Chairperson, I move without notice:

That the Council -

notes that a syndicate controlled by public officials has defrauded the government social grant system at the Tembisa office of the South African Social Services Agency (SASSA), in Johannesburg, and that the syndicate was recently exposed by the police after a joint operation between the South African Police Service (SAPS), the Department of Social Development and SASSA;

further notes that this operation demonstrates government’s commitment to the ongoing fight to eradicate fraud and corruption; and

takes this opportunity to commend the SAPS, the Department of Social Services and SASSA for their commitment and swift action in arresting the suspects, and calls upon the Minister of Social Development and the department to ensure that appropriate measures are put in place in order to detect and prevent any irregularities and unlawful actions in the social grant system.

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

ETHEKWINI MUNICIPALITY PROVIDES INCHANGA TOWNSHIP WITH LIBRARY

(Draft Resolution)

Mr C J DE BEER: Chairperson, I move without notice:

That the Council -

notes that the Mayor of Ethekwini Municipality recently presented the community of Inchanga Township near Durban with a new library, confirming the community’s recognition of education as a priority and as a part of the community’s commitment to contributing to the provision of education facilities so as to ensure that previously disadvantaged communities who live mainly in townships and on the edges of the city will not remain stuck in the mud of illiteracy and underdevelopment;

further notes the municipality’s commitment to building further libraries to provide communities with access to such facilities near them and also that it has bought two mobile libraries to which people will have access twice a week while funding for and the building of the new libraries are facilitated; and

commends the Ethekwini Municipality on its initiative and commitment and calls on the relevant national and provincial departments to recognise this initiative and to lend the appropriate financial and other support to this municipality.

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

NATIONAL EMERGING BEEF FARMER OF THE YEAR AWARD

(Draft Resolution)

Mr V M MANZINI: Chairperson, I move without notice:

That the Council -

notes that a 42-year-old female from a North West farm has scooped the Absa Agricultural Research Council National Emerging Beef Farmer of the Year Award for 2012;

further notes that Matshediso Molale-Mooketsi, a Bonsmara and Nguni cattle breeder from Lykso in the Greater Taung Municipality, beat eight competitors on 7 September 2012 to pilot the North West to the top position;

acknowledges that she outperfomed other competitors from eight provinces and positioned the North West province for the second successive year as the best in the promotion of good livestock production practices;

notes that, as the 2012 National Emerging Beef Farmer of the Year, she will embark on an educational trip to Texas in the USA from April to May 2013;

further notes that the experience she gained in the scheme will be worthwhile as she will continue to put it to good practice in unlocking her potential as a farmer; and

notes that she is the proud owner of 89 Nguni cattle and 58 Bonsmaras and employs three permanent workers.

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

HOUSEHOLDS LIVING IN SHACKS AND INFORMAL DWELLINGS

(Draft Resolution)

Mr M P SIBANDE: Chairperson, I move without notice:

That the Council -

notes with concern that the number of households living in shacks and informal dwellings in the metros of the Eastern Cape are growing and that in Buffalo City in particular 22% of households are living in informal structures;

further notes that this is mainly due to an increase in the migration of people from the rural areas who are seeking employment and access to better schools, social infrastructure and services, which is a result of the apartheid government’s creation of the former homelands of Ciskei and Transkei without stimulating any development and economic growth in these areas; and

calls on the national and provincial governments, the relevant departments and other role-players to assess and analyse the situation and, if necessary, to develop the appropriate policies, plans and programmes to address and resolve this unfortunate state of affairs.

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

VETERINARY AND PARA-VETERINARY PROFESSIONS AMENDMENT BILL

(Consideration of Bill and of Report thereon)

Ms A N D QIKANI: Chairperson, hon members, the Select Committee on Land and Environmental Affairs has considered the Veterinary and Para-Veterinary Professions Amendment Bill. The Department of Agriculture, Forestry and Fisheries briefed the committee on 23 October 2012 on the Veterinary and Para-Veterinary Professions Amendment Bill.

The Bill attempts to address the severe shortages of veterinary doctors and skewed distribution of veterinary services in rural and urban areas. The objective of the Bill was to remedy those shortcomings by making the following provisions: the establishment of an appeal committee; the performance of compulsory community service by certain persons registered in terms of the Act; the inclusion of the psychological condition in the definition of veterinary services; the registration of a person who has completed the relevant qualification, but which has not been conferred; the suspension of registered persons; the appointment and powers of inspection officers; the investigation of complaints; and cost orders.

During the deliberations the committee raised the issue of the occupation-specific dispensation as a mechanism to retain skills within the sector and the country. Since many qualified professionals leave the country to work abroad, the committee supported the compulsory community service to ensure that those who are qualified can provide the required veterinary service to rural areas.

The Select Committee on Land and Environmental Affairs, having deliberated and considered the subject of the Veterinary and Para-Veterinary Professions Amendment Bill, National Assembly section 75, referred to it, and classified by the Joint Tagging Mechanism as a section 75 Bill, agrees to the Bill without amendments.

Debate concluded.

Mr K A SINCLAIR: Chairperson, I just want to enquire for the record how many members voted in favour. [Laughter.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, may I be straightforward: Let’s not waste time; the list is long. [Interjections.]

Thirty-four have voted in favour and if you decided to abstain, thank you very much.

Bill agreed to in accordance with section 75 of the Constitution.

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS - AFRICAN CONVENTION ON THE CONSERVATION OF NATURE AND NATURAL RESOURCES (ALGIERS CONVENTION - 2003)

Mr G G MOKGORO: Deputy Chair, the request is for the approval by Parliament of the African Convention on the Conservation of Nature and Natural Resources (Algiers Convention – 2003).

The main intention of the convention is that it will be applied across the African continent to protect, improve and conserve the natural resources. This includes protecting the soil and water resources; protecting flora and fauna through sustainable utilisation; the prevention of pollution and soil erosion; and control of trafficking in trophies acquired from illegal hunting.

As of 2012, 35 countries have signed the convention, and nine of them have ratified it.

The convention had to be ratified by a total of 15 countries before it could come into effect. The main issue discussed was the financial implications since the annual membership fee of the convention was between US$40 and US$50, and human resources would also be required to form a secretariat.

For the convention to be effective, more communication and awareness campaigns were needed. Positive inputs were required such as support to vulnerable groups, particularly rural communities, in terms of natural resources and strengthening of trade, and the regulation and enforcement of cross-border movement of and trade in natural resources. These activities also need to be budgeted for.

The Select Committee on Land and Environmental Affairs, having considered the request for approval by Parliament of the African Convention on the Conservation of Nature and Natural Resources (Algiers Convention – 2003) referred to it, recommends that the Council, in terms of section 231(2) of the convention, approve the said convention. [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Mokgoro, we are still in the process.

Debate concluded.

Question put: That the Report be adopted.

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

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

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS - THE ACCEPTANCE OF THE AMENDMENT OF ANNEXURE B OF THE KYOTO PROTOCOL (TO INCLUDE BELARUS) TO THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE

Ms B P MABE: Hon Chairperson, the yearly report to Parliament on International Environmental Instruments was tabled in terms of section 26(1) of the National Environmental Management Act, Act 107 of 1998. According to section 26(1) of the Act, the Minister must report to Parliament annually regarding the international environmental instruments for which she is responsible.

The report provided details on South Africa’s participation at international meetings regarding the discussions on the environmental instruments, progress in implementing the environmental instruments, preparations undertaken in respect of the environmental instruments, initiatives and negotiations within the South African region, the efficacy of the co-ordination mechanisms and legislative measures undertaken and the timeframes to ensure that the objectives are met.

The Select Committee on Land and Environmental Affairs, having considered the yearly report to Parliament on International Environmental Instruments of 2011-12 tabled in terms of section 26(1) of the National Environmental Management Act, Act 107 of 1998, referred to it, reports that it has concluded its deliberations thereon and has reached consensus with regard to the report. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

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

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

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS - THE NAGOYA PROTOCOL ON ACCESS TO GENETIC RESOURCES AND THE FAIR AND EQUITABLE SHARING OF BENEFITS ARISING FROM THEIR UTILISATION TO THE CONVENTION ON BIOLOGICAL DIVERSITY

Ms A N D QIKANI: Deputy Chair and hon members, we are dealing with the request for approval by Parliament of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilisation to the Convention on Biological Diversity.

The Nagoya Protocol is aimed at regulating the sharing of benefits as a result of the utilisation of genetic resources. The regulations include provisions for ensuring access to genetic resources to all communities, transfer of technologies to communities whilst taking into account the rights over resources and technologies, as well as appropriate funding.

Currently, 92 countries have signed the protocol despite much discussion since 2004, and of that number only five ratifications have been acquired. The protocol attempts to enhance the fair and equitable share of benefits. It will also strengthen compliance and contribute to research and development in the pharmaceutical, cosmetics and other sectors; and will improve health systems, technology and skills transfer and job creation. All these benefits are much needed in our country.

The Select Committee on Land and Environmental Affairs, having considered the request for approval by Parliament of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilisation to the Convention on Biological Diversity referred to it, recommends that the Council, in terms of section 231(2) of the Constitution, approve the said protocol. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

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

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

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS - AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA AND THE GOVERNMENT OF THE KINGDOM OF LESOTHO ON PHASE II OF THE LESOTHO HIGHLANDS WATER PROJECT

Mr G G MOKGORO: Chairperson and hon members, the committee requests the approval by Parliament of the agreement between the government of the Republic of South Africa and the government of the Kingdom of Lesotho on Phase II of the Lesotho Highlands Water Project referred to it, and recommends that the Council does so in terms of section 231(2) of the Constitution.

On 23 October 2012 the Department of Water Affairs briefed the committee on the agreement between the government of the Republic of South Africa and the government of the Kingdom of Lesotho on Phase II of the Lesotho Highlands Water Project.

During deliberations with the Department of Water Affairs the committee made the following contributions: Phase II of the Lesotho Highlands Water Project builds on the success of the successful Phase I that was implemented; the interbasin transfer between the two parties is a beneficial partnership that provides water in exchange for hydroelectricity and infrastructure; and the process of resettlement and compensation of the communities affected by the project will benefit from the experience that South Africa has gained in the land reform programme that has been implemented.

The committee further recommends that a proper monitoring, reporting and evaluation system be instituted to ensure that all targets and measurable indicators can be achieved according to the timeframe and within the allocated budget for this project. [Interjections.]

The Select Committee on Land and Environmental Affairs, having considered the request for approval by Parliament of the agreement between the government of the Republic of South Africa and the government of the Kingdom of Lesotho on Phase II of the Lesotho Highlands Water Project referred to it, recommends that the Council, in terms of section 231(2) of the Constitution, approve the said agreement. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

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

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

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS - YEARLY REPORT TO PARLIAMENT ON INTERNATIONAL ENVIRONMENTAL INSTRUMENTS (2011-12), TABLED IN TERMS OF SECTION 26(1) OF THE NATIONAL ENVIRONMENTAL MANAGEMENT ACT, 1998 (ACT NO 107 OF 1998) OF THE DEPARTMENT OF ENVIRONMENTAL AFFAIRS

Ms A N D QIKANI: Deputy Chair and hon members, the yearly report to Parliament on International Environmental Instruments 2011-12 was tabled in terms of section 26(1) of the National Environmental Management Act, Act 107 of 1998.

According to section 26(1) of the National Environmental Management Act, Act 107 of 1998, the Minister must annually report to Parliament regarding the international environmental instruments that she is responsible for.

The report provided details on South Africa’s participation at international meetings regarding the discussions on the environmental instruments; progress in implementing the environmental instruments; preparations undertaken in respect of the environmental instruments; initiatives and negotiations in the South African region; the efficacy of the co-ordination mechanisms and legislative measures undertaken; and the timeframes to ensure that the objectives are met.

The Select Committee on Land and Environmental Affairs, having considered the yearly report to Parliament on International Environmental Instruments 2011-12 tabled in terms of section 26(1) of the National Environmental Management Act, Act 107 of 1998 referred to it, reports that it has concluded its deliberations thereon and concurs with the report. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

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

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

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS - OVERSIGHT VISIT TO MUYEXE, LIMPOPO PROVINCE FROM 21 TO 24 AUGUST 2012

Ms B P MABE: Deputy Chair, on 17 August 2009 President Zuma officially launched the Department of Rural Development and Land Reform’s Comprehensive Rural Development Programme, CRDP, in the Limpopo province. Muyexe village was identified as a pilot site to launch the Comprehensive Rural Development Programme due to the high levels of poverty, unemployment and underdevelopment in the area.

The Greater Giyane District is classified as a rural municipality, and its main challenge is access to water and sanitation. The area is characterised by a dry and hot climate with underdevelopment and limited employment opportunities. Basic services such as access to safe drinking water, sanitation, health services and transport are unavailable.

The Select Committee on Land and Environmental Affairs therefore thought that it would be prudent to follow up on the progress made in implementing the CRDP in Muyexe and investigate the issues raised by the communities in the areas as well as to monitor and evaluate the Department of Rural Development and Land Reform’s roll-out of the CRDP at all pilot sites.

The committee revisited the sites that were launched during the pilot programme and observed that much infrastructural development had occurred, but that the projects lack maintenance and monitoring. Furthermore, the biggest challenge was the lack of water and the poor quality of water that was available.

This constrained the implementation of several projects: The 300 home gardens that were proposed cannot be implemented due to the scarcity and poor quality of water. Furthermore, although a water treatment plant was built to treat the water so that the community can have access to quality water, the problem is that there is no electricity to ensure that the plant operates and supplies the water. The installation of the water pipeline was incomplete and was not bringing water to the community.

The agricultural project that was visited was Macina Women’s Farmers Project. We observed that the project was dysfunctional as there was no water or agricultural extension to support the women’s farmers group. Furthermore, the issue of a consultant that was to be brought into the project to support the group was also discussed and will be further investigated by the Departments of Rural Development and Land Reform and of Agriculture, Forestry and Fisheries.

I also want to bring to the attention of the House that the statement was drawn up in terms of the report that there were 80 sites. However, today we had an opportunity to engage with the department in the presence of the Deputy Minister, and the information has now changed.

All the challenges highlighted above need to be further investigated, and the committee therefore makes the following recommendations.

Firstly, the Department of Rural Development and Land Reform should be the key lead department in terms of monitoring and co-ordination.

Secondly, the committee will undertake a follow-up visit to Muyexe to further investigate the issue of the water pipeline, as well as the involvement of the Mopani District Municipality and the Department of Water Affairs in regard to the shortage of water delivery service in the fourth term.

Thirdly, the Department of Rural Development and Land Reform has to hold a co-ordination and planning session with the councillors and the district and local municipalities on the status of the projects in the Muyexe area.

Fourthly, the Department of Rural Development and Land Reform and the Department of Agriculture, Forestry and Fisheries have to provide a complete report on a loan that was procured for the Macina Women’s Project.

Finally, the Department of Agriculture, Forestry and Fisheries has to provide a report on the extended support provided to the agricultural projects in the district; and the Department of Water Affairs and the Mopani District Municipality have to provide a report on the water treatment plant and maintenance of the facility. [Applause.]

Debate concluded.

Question put: That the Report be adopted.

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

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

The Council adjourned at 14:59.

________

ANNOUNCMENTS, TABLINGS AND COMMITTEE REPORTS

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Bills passed by Houses – to be submitted to President for assent

Bill passed by National Council of Provinces on 13 November 2012:

Veterinary and Para-Veterinary Professions Amendment Bill [B 25B – 2012] (National Assembly – sec 75).

National Council of Provinces

The Chairperson

1. Message from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council

Bill passed by National Assembly and transmitted for concurrence on 13 November 2012:
1. Taxation Laws Amendment Bill [B 34 – 2012] (National Assembly – sec 77).

Tax Administration Laws Amendment Bill [B 35B – 2012] (National Assembly – sec 75).

The Bills have been referred to the Select Committee on Finance of the National Council of Provinces.

COMMITTEE REPORTS

National Council of Provinces

1. REPORT OF THE SELECT COMMITTEE ON APPROPRIATIONS ON THE DIVISION OF REVENUE AMENDMENT BILL [B33 – 2012], DATED 13 NOVEMBER 2012

Having considered the Division of Revenue Amendment Bill [B33 - 2012], the Select Committee on Appropriations reports as follows:

Introduction

In enforcing section 77 of the Constitution, the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 (the Money Bills Act) was enacted. This empowered Parliament to amend the government budget and therefore play a greater role in ensuring that the most urgent needs of South Africans are addressed. It provides Parliament with the necessary instruments to oversee government actions and monitor its fiscal discipline.

While the Money Bills Act empowers Parliament to amend money bills, it also provides guidelines and factors to be taken into consideration by Parliament and its Committees on Appropriations when proposing any amendments to the money bills.

Section 6(1)(a-f) of the Money Bills Act provides that, at least three months prior to the introduction of the national budget, the Minister of Finance must submit to Parliament a medium term budget policy statement that must include the following:

A revised fiscal framework for the present financial year and the proposed fiscal framework for the next three years;
An explanation of the macro-economic and fiscal policy position, the macro-economic projections and the assumptions underpinning the fiscal framework;
The spending priorities of national government for the next three years;
The proposed division of revenue between the spheres of government and between arms of government within a sphere for the next three years;
The proposed substantial adjustments to conditional grants allocations to provinces and local government, if any; and
A review of actual spending by national departments and provincial departments between 1 April and 30 September of the current fiscal year.

The Division of Revenue Amendment Bill (the Bill) was tabled in Parliament on 25 October 2012 by the Minister of Finance during the tabling of the 2012 Medium Term Budget Policy Statement (MTBPS).

The Bill addresses the following matters:

The adjustment of equitable division of revenue raised nationally among the three spheres of government;
Determination of each province’s equitable share of the provincial sphere’s share of revenue raised nationally;
Additional unconditional and conditional allocations to provinces and municipalities;
The allocation of unallocated conditional allocations to provinces and municipalities;
The re-allocation of conditional allocations in terms of section 18 of the Division of Revenue Act (DoRA);
Roll-overs of conditional allocations to provinces and municipalities not transferred by national departments during the 2010/11 financial year;
Increases to a conditional allocation to a province or municipality through virements under section 43 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) or section 28(2)(d) of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003), as the case may be; and
The re-allocation of conditional allocations that were not correctly reflected in the Schedules to the DoRA.

Changes in the equitable division of nationally raised revenue among the spheres of government

The net effect of the 2012 adjustments is a reduction in the 2012/13 estimates of expenditure from R969.4 billion to R967.5 billion. Although in percentage terms this is a mere 0.2% in monetary terms this is about R1.9 billion. The national allocation has been adjusted downwards by R5.9 billion (of which R3.0 billion is savings) from R622.4 billion to R616.6 billion. The provincial equitable share allocation is adjusted upwards by R4.0 billion and the local government equitable share allocation remains unchanged.

The adjustments to the equitable division of revenue raised nationally among the spheres of government can be observed in Table 1 below.

Table 1: Schedule 1

Sphere of Government	2012/13 Allocation R’000	Amount adjusted R’000	2012/13 Adjusted allocation R’000
National	622 434 681	-5 860 531	616 574 150
Provincial	309 057 382	3 958 416	313 015 798
Local	37 873 396		37 873 396
Total	969 365 459	-1 902 115	967 463 344

National Treasury (2012) [adapted]

Changes in each province’s equitable share of the provincial sphere’s share of revenue raised nationally

The additional R4.0 billion allocated to the provincial equitable share is to provide for higher remuneration increases than what was provided for in the main budget. Provinces were advised to budget for wage increases of 5.0 per cent; however the wage agreement between labour and government resulted in a 7.0 per cent increase. The R4.0 billion therefore funds the 2.0 per cent difference and covers the full wage agreement which includes the following:

A salary increase for eleven months of the fiscal year;
A housing allowance increase from R800 to R900 per month that has been in effect from April 2012;
Long services cash awards; and
Night shift allowances.

The R4.0 billion has been allocated to provinces based primarily in proportion to their share of personnel numbers as at 31 March 2012, as shown in Table 2.

Table 2: Schedule 2

Province	2012/13 Allocation ‘000	Amount adjusted ‘000	2012/13 Adjusted allocation ‘000
Eastern Cape	46 940 272	619 616	47 559 888
Free State	18 531 165	264 121	18 795 286
Gauteng	54 545 389	667 473	55 212 862
KwaZulu-Natal	67 802 913	835 750	68 638 663
Limpopo	38 721 016	538 621	39 259 637
Mpumalanga	24 874 453	328 390	25 202 843
Northern Cape	8 255 155	100 846	8 356 001
North West	20 614 831	256 364	20 871 195
Western Cape	28 772 188	347 235	29 119 423
Total:	309 057 382	3 958 416	313 015 798

National Treasury (2012) [adapted]

Adjustments to provincial government conditional grants allocations

4.1 Further Education and Training Colleges Grant

Provinces receive additional funds of R87.336 million with respect to the Further Education and Training (FET) Colleges Grant to provide for higher than budgeted wage agreements. The additional funds are shared between the provinces in proportion to their share of personnel in FET colleges. The additional funds have been allocated as follows:

Eastern Cape – R11.330 million
Free State – R5.849 million
Gauteng – R19.712 million
KwaZulu-Natal – R19.025 million
Limpopo – R9.156 million
Mpumalanga – R2.589 million
Northern Cape – R1.743 million
North West – R4.556 million
Western Cape – R13.376 million

4.2 Unforeseen and unavoidable expenditure

Additional funds have been allocated to two conditional grants in the health sector to make provision for unforeseen and unavoidable expenditure. The two grants are:

Health Infrastructure Grant: KwaZulu–Natal Province receives an additional R180.0 million.
Hospital Revitalisation Grant: Additional funds totalling R186.0 million is provided for. The Free State Province is allocated an additional R166.0 million and KwaZulu-Natal Province an additional R20.0 million.

4.3 New conditional grant to provinces

A new grant is introduced as a once-off allocation to provinces for the provision of health and medical services for the 2013 Africa Cup of Nations (AFCON), which is scheduled to take place from 18 January to 10 February 2013. A total amount of R15.0 million has been made available to the following five host provinces:

Eastern Cape – R3.0 million
Gauteng – R3.0 million
KwaZulu-Natal – R3.0 million
Mpumalanga – R3.0 million
North West – R3.0 million

Adjustments to local government conditional grants allocations

5.1 Roll-overs

5.1.1 Regional Bulk Infrastructure Grant

A roll-over of R20.018 million in Regional Bulk Infrastructure Grant funds was approved for Elias Motsoaledi Local Municipality for funds committed to projects in 2011/12 but not yet transferred.

5.1.2 Expanded Public Works Programme (EPWP) Integrated Grant for Municipalities

A roll-over of R17.4 million was approved for the EPWP Integrated Grant as a result of funds earned by municipalities not being transferred during the 2011/12 financial year due to technical problems with the payment systems. The roll-over funds will ensure that municipalities receive the full incentive amount due to them for their performance in creating employment.

5.2 Savings/Under-expenditure

5.2.1 Regional Bulk Infrastructure Grant

Expected under-expenditure of R13.6 million was declared on Regional Bulk Infrastructure Grant projects. These are indirect funds that are spent by national departments on behalf of municipalities. While the reductions of these funds will not impact on the amount to be transferred to such municipalities their forfeiture however would mean delayed service delivery in the areas concerned. These projects are located in the following municipalities:

Mopani District Municipality – a downward adjustment of R7.0 million from R38.789 million to R31.789 million.
Sekhukhune District Municipality - a downward adjustment of R4.0 million from R351.534 million to R347.534 million.
Breede Valley Local Municipality - a downward adjustment of R2.558 million from R18.0 million to R15.442 million.

The net effect of the roll-over funds mentioned under 4.1.1 and the under-expenditure amounts to an additional allocation of R6.460 million for the Regional Bulk Infrastructure Grant for the 2012/13 financial year.

5.2.2 Rural Households Infrastructure Grant

The Department of Human Settlements has declared savings of R138.875 million with respect to the Rural Households Infrastructure Grant (RHIG), which will be reallocated to other government priorities. RHIG allocations are spent by the Department of Human Settlements on behalf of municipalities to provide on-site solutions for water and sanitation in rural areas where it is not feasible to provide households with piped services due to dispersed settlement patterns. The RHIG is an indirect fund and therefore the reduction in the RHIG allocations does not affect the amounts that municipalities have budgeted to receive as transfers, but it will affect service delivery as funds originally allocated to supplement the provision of this service due to structural necessities (e.g. dispersed settlement patterns), particularly in poor, rural areas, are reprioritised to fund other activities.

Additions

5.3.1 2013 Africa Cup of Nations Host Cities Operating Grant

An operating grant to cities hosting the 2013 Africa Cup of Nations (AFCON) has been established to cover the costs related to the following:

The operations of the 2013 Africa Cup of Nations championship;
Team accommodation and referee accommodation on match days;
Local transport for teams and referees;
Event security at stadiums and training venues;
VIP hospitality;
Medical, disaster management and insurance;
Tournament branding;
Office and competition equipment; and
Volunteer meals, stipends and transport.

Municipalities will have to ensure that they have an operational plan that has been approved by their Council and complies with the minimum requirements for hosting the 2013 Africa Cup of Nations championship. A total amount of R123.111 million has been made available to the following five host cities:

Nelson Mandela Bay – R15.923 million;
City of Johannesburg – R25.500 million;
eThekwini – R28.923 million, of which R11.0 million is for the final draw;
Mbombela – R31.500 million; and
Rustenburg – R21.265 million.

5.3.2 Expanded Public Works Programme (EPWP) Integrated Grant for Municipalities

An additional R45.5 million is made available to municipalities that have earned incentive amounts higher than what was budgeted for in the 2012/13 allocations tabled in February 2012. The additional allocation is funded from savings in the national Department of Public Works.

The net effect of the roll-over funds and savings amounts to a total of R62.895 million in additional funding for the EPWP Integrated Grant for the 2012/13 financial year, which has been allocated to municipalities in various provinces as follows:

Table 3: Summary of Schedule 6

Province	2012/13 Allocations	Adjustments	2012/13 Adjusted Allocations
Eastern Cape	98 626	4 468	103 094
Free state	37 135	5 668	42 803
Gauteng	175 837	5 035	180 872
KwaZulu-Natal	84 987	10 500	95 487
Limpopo	48 082	782	48 864
Mpumalanga	29 795	16 056	45 851
Northern Cape	32 659	2 919	14 578
North West	38 167	5 994	44 161
Western Cape	53 952	11 473	65 425
Total	599 240	62 895	662 135

National Treasury 2012 (adapted)

Correction

Municipal Infrastructure Grant (MIG) funds were allocated incorrectly for two KwaZulu-Natal municipalities in the 2012 Division of Revenue Act (No. 5 of 2012) due to a technical error. The following corrections are effected:

The MIG allocation for Hlabisa Local Municipality is adjusted downwards by R9.955 million from R21.870 million to R11.915 million; and
The MIG allocation for Mtubatuba Local Municipality is adjusted upwards by R9.955 million from R10.903 million to R20.858 million.

This correction does not alter the baseline of the MIG allocation for 2012/13 and will be done through the Government Gazette as per section 15 of the 2012 Division of Revenue Act.

A correction is needed to the Northern Cape EPWP Integrated Grant for Provinces allocation in the Bill to reflect the correct department name of Environment and Nature Conservation that receives the Grant allocation, instead of Economic Development and Tourism. This will also be done through the Government Gazette.

Submission by Financial and Fiscal Commission

In terms of Section 4(4)(c) of the Money Bills Act the Committee must report on the recommendations of the Financial and Fiscal Commission (FFC). The FFC was invited to brief the Committee on its submission on the Medium Term Budget Policy Statement during a meeting on 30 October 2012.

Proposed changes to conditional grants

In general, the FFC raised the following serious concerns with the infrastructure grant framework at both provincial and local government level:

Continual proliferation of grants;
Unsuccessful piece-meal interventions; and
Shortcomings of national government department grant administration (as the transferring officer).

Provincial government conditional grant issues

The FFC supported government’s efforts to improve conditional grant spending in provinces. It indicated that, although the FFC supported the essence of a performance/demand driven provincial grant framework, it felt that the new approach should be implemented with caution, so as not to entrench inter-provincial inequities and jurisdictional disparities. It was important that provinces be provided with capacity support to implement the new system.

Local government conditional grant issues

The FFC supported efforts to protect local government conditional grants in a tight fiscal framework, as this was fundamental in the rolling-out of services to communities. The FFC further welcomed the efforts to improve monitoring of grant spending and its developmental impact. It was noted that improved spending did not necessarily result in improved outcomes. The FFC pointed out the need to monitor and evaluate conditional grant outcomes and to balance capacity with accountability. The FFC further submitted that punitive fiscal measures might be counterproductive as it did not remedy the root causes of under-spending. In this regard, the FFC indicated that there was a need for a comprehensive analysis of the under-spending of conditional grants by municipalities.

The FFC welcomed the initiatives to create innovative jobs at municipal level, and felt that, through the grant framework, government should take advantage of the opportunities for job creation in the solid waste management sector.

Local government equitable share

The FFC reported that it had participated at a technical level in the local government equitable share (LES) review and that it generally supported the structure of new formula. The FFC highlighted the following issues:

It is important to link LES to the infrastructure grant framework;
Poor municipalities need capacity to spend additional funds; and
There is a need for an appropriate measure of municipalities’ revenue raising capacity in the formula.

Presentation by Public Service Commission

The Public Service Commission (PSC) was invited to brief the Committee on its submission on the Medium Term Budget Policy Statement during a meeting on 30 October 2012. According to the PSC, performance by the public service was uneven and inconsistent while the regulatory framework was cumbersome and promoted a compliance orientated approach that ultimately inhibited service delivery. When comparing the 2010/11 and 2011/12 financial years, the PSC had found that, although there had been improvements, the quality of performance information was poor.

The PSC further reported that, according to the MTBPS, the expenditure on key priorities in the local government and housing function (water, sanitation, human settlement development and local government infrastructure) would grow by an annual average of 9%. The PSC was of the view that such an increase must take into account the need to address quality considerations.

The PSC indicated that, while the Department of Rural Development and Land Reform aimed to develop a multi-sectoral response to rural development; such development should clarify how the land reform affected rural unemployment and also ensure that land redistribution increased economic opportunities for the poor people in rural areas. The PSC explained that given the economy’s difficulty in creating employment, the provision of short-term employment by government through its Expanded Public Works Programme (EPWP) was a rational and appropriate response. However, the size of the EPWP and the Community Work Programme (CWP) was relatively small - 3 192 880 job opportunities. The PSC highlighted that, in terms of the MTBPS, the CWP would receive R7.6 billion over the next three years (an annual average increase of 25 per cent).

The PSC further reported that the MTBPS highlighted the need to contain public service wage increases and for expenditure to shift to the creation of social and economic assets. However, the PSC was of the view that, while the decrease in the compensation of employees was desirable and appropriate, it was not clear how it would be achieved. They welcomed the signing of a multi-year public service wage agreement as a positive step. The PSC also indicated that there was a need to link wage and salary increases to productivity.

The PSC reported that the average tenure by senior management service (SMS) members on salary level 14, in 11 sampled departments at national and provincial level, was three years before being promoted to salary level 15. The PSC found this insufficient time to consolidate the necessary experience. The PSC further found capacity constraints in government departments were caused by skewed distribution of the required skills whereby departments were dominated by lower and semi-skilled employees.

The PSC reported that it had found a deeply problematic organisational culture had taken hold in the public service, one in which wrongdoing went unpunished and non-performance was a norm where the lack of consequences and the culture of impunity fed one another. The PSC further reported that there was insufficient capacity to deal with cases reported to the National Anti-Corruption Hotline – only 6 per cent of national and provincial departments had a closure rate of above 80 per cent.

The PSC found that the current approach of expecting each public service entity to take responsibility for its own human resource management and development practices was unrealistic.

8. Consideration of Mandates

8.1 Negotiating mandates

The Committee met on 7 November 2012 to consider negotiating mandates from provinces. All nine provinces tabled negotiating mandates in favour of the Bill. The North West Province, Gauteng and the Northern Cape raised issues in their reports, as follows:

The North West Province indicated that it was dissatisfied with the processing of budgets as it seemed that the Province just endorsed them. The North West Provincial Legislature wanted to be afforded more platforms to put matters of fiscal concerns into context.

Gauteng Province indicated that the following matters had been raised by their Executive Council:

Rollovers of unspent funds from 2011/12 to 2012/13 financial years were not catered for in the Bill and as a result a number of unintended consequences may follow. Gauteng requested a total of R572.1 million as rollovers of unspent conditional grant funds. These were committed to ongoing projects, and this may place departments under undue pressure, notwithstanding the general mood that is one of fiscal restraint.
The 2012 Division of Revenue Bill should therefore reconsider the non-provision for rollovers of unspent conditional grant funds from 2011/12 to the 2012/13 financial years, as this will make it difficult for departments to complete projects that are still in progress.

The Northern Cape Province raised the following concerns:

The cutting across on the baselines of the conditional grants, especially for the Department of Agriculture, Land Reform and Rural Development.
The Joe Morolong Municipality should be penalised for the poor spending and management of the Rural Households Infrastructure Grant by the National Accounting Officer.
The inadequate funding of the Kimberley Mental Health Hospital which resulted in funds being shifted from the De Aar Hospital to make provision for this cross-subsidisation.

8.2 Final mandates

The Committee met on 13 November 2012 to consider final mandates from provinces. Final mandates from seven provinces were received and all seven mandates were to vote in favour of the Bill. Gauteng and the Free State Province indicated that their final mandates could not be submitted in time for the meeting, due the respective legislatures sitting in the afternoon. However, voting mandates from both provinces would be submitted in time for the debate in the House.

Findings

9.1 What the National Treasury regards as savings are, in the view of the Committee, under-spending and that means the benefits of reprioritised funds are likely to be outweighed by the opportunity costs (the benefit, profit, or value of something that must be given up to acquire or achieve something else) and the social costs (the cost to society as a whole from an event, action or policy change).

9.2 There is a need for the National Treasury to expedite the establishment of the supply chain management office to avoid any further procurements processes that are not in compliance with Treasury Regulations.

9.3 There is a need to strengthen the cooperative government within various spheres of government as stipulated in section 154 of the Constitution. This would minimise the unintended consequences (such as opportunity and social costs) of the funds that are withheld from departments and municipalities due to under-spending.

9.4 The Committee supports the view that punitive fiscal measures might be counterproductive as it does not remedy the root causes of under-spending. In this regard, the Committee supports the need for a comprehensive analysis of the under-spending of conditional grants by municipalities.

9.5 The following concerns raised by the FFC on conditional grants should be taken seriously - continual proliferation of grants; unsuccessful piece-meal interventions; and shortcomings of national government department grant administration (as the transferring officer) that contribute to under-spending.

9.6 The slow process in dealing with financial misconduct sends the wrong message about government’s commitment in dealing with corruption.

9.7 The continued negative audit opinions cast doubt on the value for the money spent and for this reason the operation clean audit campaigns should be intensified in all spheres of government.

9.8 The Committee welcomes the review of the local government equitable share (LES) formula and the recommendations of the FFC that it is important to link the LES formula to the infrastructure grant framework; poor municipalities’ need for capacity to spend additional funds; and the need for an appropriate measure of municipalities’ revenue raising capacity in the formula.

9.9 The Committee welcomes the commitment by the National Treasury to take into consideration the new census figures during the next budget.

9.10 The Committee supports the PSC view that growth in spending on government‘s priorities should also take into account quality in order to ensure value for the money spent.

9.11 The Committee supports the PSC view that there is a need to link wage and salary increases to productivity.

9.12 The Committee supports the PSC’s call that wrongdoing and non-performance within the public service should not be condoned and left unpunished.

Recommendation

The Select Committee on Appropriations, having considered the Division of Revenue Amendment Bill [B33 – 2012] (National Assembly – Section 76(1)) referred to it and classified by the Joint Tagging Mechanism as a Section 76(1) Bill, recommends to the House that it be adopted, without amendments.

Report to be considered.

Audio

No related

Documents

NCOP: Unrevised hansard

Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 13 Nov 2012

Summary

Minutes

Audio

Documents

Bills

What's wrong with this page?