Hansard: NA: Mini-Plenary 3

House: National Assembly

Date of Meeting: 16 Nov 2023

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Minutes

UNREVISED HANSARD
MINI PLENARY 3 - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 16 NOVEMBER 2023
PROCEEDINGS OF THE NATIONAL ASSEMBLY CHAMBER – MINI PLENARY 3
Watch video here: NA: Mini-Plenary 3

 

Members of the mini-plenary session met on the virtual platform at 14:00.

The Acting Chairperson, Mr M G Mahlaule, took the Chair and requested members to observe a moment of silence for prayer or meditation.

 

The Acting Chairperson announced that the virtual mini-plenary sitting constituted a meeting of the National Assembly.

 

THE DESPERATELY NEEDED RELIEF MEASURES, INCLUDING EXPANDING THE ZERO-VAT-RATED FOOD BASKET, THAT THE GOVERNMENT SHOULD TAKE IMMEDIATELY TO ALLEVIATE THE NEGATIVE IMPACT OF THE INFLATING COST OF LIVING CRISIS ON SOUTH AFRICAN HOUSEHOLDS

 

(Subject for Discussion (Dr D T George)

Dr D T GEORGE: Thank you, Chairperson. In his Medium-Term Budget Policy Statement, the Minister set out our country’s dire financial situation. A direct result of the ANC-led government’s ineffective economic policy choices. Our economy is significantly underperforming the 3,3% growth projected for the sub-Saharan region. The National Treasury projected 0,9% growth in February, revised it down to 0,8% and the Reserve Bank projects 0,7%. This stagnant growth has resulted in a revenue shortfall, a widening deficit and expenditure has been cut.

This dismal state of affairs was entirely avoidable. Government chose to place itself at the centre of our economy in pursuit of a so-called ‘developmental state’, that would drive economic growth, generate jobs and lift South Africans out of poverty. The dysfunctional and corrupt ANC-led government has proven to be incapable of implementing this model.

Nothing highlights government incompetence and corruption more than the fiasco of the state-owned enterprises. After 1994, a fatal decision was taken to ‘corporatise’ them. This meant that they would employ boards and function like other companies but would still be owned by government. This was a

giant mistake. Although boards were put in place and paid very lucrative salaries and bonuses, the deployed cadres had no incentive to be efficient. One after the other, they failed, and government’s response was to bail them out. Hundreds of billions of rands later, we still do not have viable state- owned enterprises and we never will.

Government chose to implement its cadre deployment programme that employed politically connected individuals to key positions in the public service. This means that the best candidate is not selected and the occupant doesn’t do their job without fear, favour, or prejudice. Instead, politics infects service delivery, and the job is not done to serve the people, but rather to serve the party.

That is why we have an oversupply of millionaire managers in the public sector and an undersupply of people who can actually deliver the service. That is not sustainable, as the public sector wage bill continues to spiral upwards without any improvement in service delivery and productivity.

Government chose the wrong model for black economic empowerment. The model was sold as a mechanism for broad-based black economic empowerment but was the exact opposite. The model made a few people extremely rich and left everyone else behind in poverty.

Battling South African households are feeling the pain of these poor policy choices. As the world grapples with inflation, government can take action to relieve the pressure. By taxing fuel, the price of petrol increases, that increases transportation costs and then knocks on to the cost of food and more and more South African households are unable to put enough food on their tables.

In the week before his statement, the DA handed a memorandum to the Minister, asking his to respond to the cost-of-living crisis: Where 81% of households are skipping at least one meal a day; 12 million people go to bed hungry every night; 30% of children under age 5 are stunted in their development; and millions of hungry schoolchildren are unable to concentrate and learn.

South Africans are struggling to pay their mortgages, school fees and cannot maintain the lifestyle they have worked so hard to achieve. Government has simply not responded to this growing crisis. There has been no mention of the action plan that Cabinet mandated the economic cluster to develop, to enhance food security and accessibility.

The DA has proposed measures to bring much need relief to battling South African households. Government can cut the taxes and levies on fuel that currently comprise 33% of the fuel price. This would immediately lower the cost of fuel, the cost of transportation and the cost of food. Government can implement the very long overdue Pension Fund Reform that will enable members to access a portion of their funds during financial hardship, prior to retirement, as has been successfully implemented in a number of other countries.

Government can grow the economy by positioning itself in the right place in our economy, not at the centre where it gets in the way of growth. Promoting local economic growth requires public-private partnerships; market liberalization; property rights enhancement; trade openness; regulatory streamlining and cutting red tape; labour laws that encourage job creation; scrapping of exchange controls and a VISA system that works.

Government can increase the child grant to the poverty line. Government can increase the zero-VAT rated basket of goods purchased by the most vulnerable 50% of South African households. By including additional items, such as: Bone-in- chicken; beef; tinned beans; wheat flour; margarine; peanut butter; tea; coffee; baby food and soup powder, battling South African households would be able to put more nutrition on their tables.

Government also needs to clarify the future of the Social Relief of Distress Grant. This was extended as an after- thought without any policy clarity and no effective funding plan. There is no sign of the revised social security plan promised several years ago. All we have to be concerned about, is government now talking about tax increases. Simply put, government needs to respond. Thank you, Chairperson.

The DEPUTY MINISTER OF FINANCE: Hon Chair and hon members, at this stage we will not want to respond to all the points that hon George made including on cadre deployment, Broad-based black economic empowerment, BEE, because that will divert us from the topic of today. We can go to towns and showing how the DA cadre deployment works and, secondly, how the continuous attempt and attack on BEE is actually the code and a camper to protect colonially accumulated privileges.

The intention of BEE is to make sure that the majority of people particularly blacks and poor are included in the economy. But that is subject for another day.

The government does recognises that South Africans have faced challenges in this difficult economic climate. Indeed, the cost of living is too high. But we do not think that additional value-added tax, VAT, zero-rating of several food items is the best instrument to address the problem of high cost of living. And before I state the reasons why we do not think this is not the right solution, let me state obvious, which is that VAT constitutes 26% on average of gross tax revenue. It is this tax revenue that we collect that we redistribute to the poor via different pro-poor government programmes.

Let me remind, hon members, that the government spends more than 60% of its budget on the social wage, which is likely directed to the poor. In addition to this, the government has already VAT zero-rated a number of basic foods. This includes the zero-rating of illuminating paraffin and other items, which was introduced in April 2001. Studies subsequently showed that suppliers did not pass on the benefit of the VAT relief to consumers as it was intended. So, it does not follow that zero-rating will lead to lower prices. Studies has showed that.

The tax revenue that is lost from zero-rated food items mostly flows to higher-income households because this category of our people purchase more of the products that are zero-rated. In fact, many analysts have demonstrated that in absolute monetary terms, middle- and higher-income households benefit more from the zero-rating than lower-income or poorer households. The products that are zero-rated are well- targeted. Further zero-rating will lead to VAT revenue loss, which should be directed to the already existing pro-poor government programmes. Targeted cash transfer to the poor is better and more redistributive as opposed to VAT which benefits mostly high-income households.

In the 2019-20 fiscal year, R31 billion VAT revenue was forgone due to zero-rated items. So, we think that further zero-rating will lead to the decline of revenue which could be used to support the poor.

Hon Chair, it is our considered view that the current VAT system is well-intended and essential in generating the necessary tax revenues to fund the government's expenditure programmes, including initiatives to help the poor. As I said, a social transfer system of assisting the poor through targeted expenditure interventions is much more desirable and better.

Recognising that zero-rating is not the best instrument, the government has instead implemented a number of policies to directly benefit lower-income households through the expenditure side. Education and health budgets are progressive, and the extensive grant system of old age grants, the child support grant, and the disability grant provide cash to households who are most in need.

 

The social relief of distress grant popularly known as R350 is another new mechanism that the government has used to provide this relief. This a better approach than zero-rating where so much of the benefit goes to higher earners and where companies may not even pass on the benefits to the consumers.

 

The government has recognised that prices have risen considerably in the last few years and have put in place other mechanism and measures to alleviate this burden.

Last year, we implemented a temporary reduction in the general fuel levy. This provided relief of an estimated R10,5 billion. On top of that, the general fuel levy for the past two budgets has not been increased the fuel levy. Another measure that was announced earlier this year in the budget was the introduction of a Road Accident Fund levy for food manufacturers. This means, these manufacturers using diesel can apply for additional tax reductions on the diesel used. This could possibly reduce the costs of food manufacturers and alleviate the pressure on food prices. This shows that the government has been active in finding solutions to try and combat high prices, without resorting to further zero-rating

The focus, hon Chair, is on driving structural reforms on our economy. Bringing in competition in the energy industry through the structural reforms that we have undertaken should bring the prices of energy down. Bringing competition in the rail and port system should bring competition, thus lowering the prices in the industry. This will not only increase growth and the potential for more revenue and higher social expenditure but it will also lead to less pressure on prices if logistics and energy become more efficient and more reliable. The ultimate goal is to increase growth and create more jobs where households will have higher incomes, and be less dependent on the state, and be able to withstand all the temporary shocks to prices. I thank you, hon Chair and hon members, for your attention.

Ms B S MASANGO: Thank you, hon Chairperson. One doesn’t have to look far to find the devastating impact of the crippling cost of living crisis in South Africa. According to the Eastern Cape Provincial Office of the SA Human Rights Commissions’ August 2022 Inquiry into Child Malnutrition and the Right to Food, child malnutrition in the Eastern Cape should be declared a disaster, in terms of the Disaster Management Act, and government should intervene immediately and decisively.

As part of this urgent and chilling call, the inquiry affirms the repeated calls by the DA for the Department of Social Development to increase the Child Support Grant above the poverty line. The DA supports the SA Human Rights Commission's call, for the Department of Social Development and Home Affairs to collaborate on a registration campaign, targeting unregistered children.

Chairperson, these calls should not come out of reports by the SA Human Rights Commission, because they are at the center of the department’s core mandate. If the department is not doing the above, what is the department doing? Chairperson, as far back as 2016 and beyond, the DA has been calling for demonstrable reforms to avoid the crisis we are now experiencing as a country

A country like South Africa, which my colleague, Dr Deon George, referred to recently as a rich country with a government that is mismanaging its resources, should not have 81% of its households skipping at least one meal a day; 27% of children stunted in their development; or millions of hungry children going to school, not being able to concentrate and learn. These children are our future. This government should invest in them to be the best that they can be.

 

Chairperson, researchers and economists agree with the DA, but the social cost of ignoring this crisis will far outweigh the cost of intervening to bring relief. It should be clear to everyone that although some interventions will cost the fiscals directly, the indirect cost in terms of productivity losses, learning losses, cost of dealing with diet-related diseases will cost South Africa more.

It beggars believe, while the ANC-led government has simply ignored our thoroughly researched, implementable and tangible solutions. The hunger crisis is deepening. It is urgent and it is ravaging to the most poor and vulnerable, living a trail of devastation throughout the country, especially in remote rural areas. The ANC-led government has, neither considered our solutions, nor come up with its own. The lack of caring and a diminishing political will has become the ANC’s hallmarks.

 

Covid-19, drought and other unpreventable disasters that the country went through made the resulting challenges, such as unemployment and homelessness worse. But, these have not been matched by a sense of urgency in coming up with tangible and implementable reforms from the side of the ANC-led government. In the wake of Covid-19, governments around the world responded swiftly, with bold relief packages, because they know it is in everyone’s best interest - not the ANC-led government.

Hon Chairperson, the right to food and life is enshrined in South Africa’s Constitution. The DA will not let up until South Africa’s hunger crisis is addressed. This is because the DA cares, and we have solutions. South Africans can look forward to their interests being prioritised in 2024, when the

DA governs this country, with care, respect, honour and dignity. I thank you, Chairperson.

Mr M MANYI: Thank you, Chairperson. House Chairperson, South Africa’s economic crisis is a product of a political incompetence, mismanagement and looting of national resources and corruption under the government of Mr Cyril Ramaphosa in the past five years. It has indeed been five years of rampant corruption. It has been five years of nepotism and friendship arrangements.

This period has also seen a significant increase in unemployment rates and the decline in the quality of public services, exacerbating the suffering of our people. It has been five years of staffing US dollars in sofas and mattresses, while our people are suffering high levels of inflation and the high cost of living.

Our people cannot afford to put food on the table. Many cannot afford transport to work. There are workers who are losing their homes, and their families are left without roof over their heads. The unemployment crisis, particularly among the youth, is reaching alarming levels, further straining the already struggling households.

The reality is that our people are desperate, and the Deputy Minister must be in touch with the ground. His comments negate all of this. When VAT was increased from 14% to 15% in 2018, we were told, or perhaps lied to, that the working class and the poor will be shielded from the impact of this increase.

 

Sorry, Chairperson, this thing is messing around here. [Inaudible.] We were even told that an increase will be reviewed, but such was never done. Moreover, the promises of job creation and economic growth have fallen flat, leaving million in a state of financial uncertainty and distress.

But, we now know that the only people who receive relief from National Treasury are the rich and the wealthy? It is the people with money who want to install new and used solar PVs that are getting relief. House Chairperson, any relief measures that do not start with the immediate suspension of austerity measures, if not stopped, will push this country into an economic depression, like that we have seen before.

 

 

You cannot provide any relief to the most vulnerable, and then go to cut the budget for their health and education. Cut the budget that must provide them with functioning police stations, funding schools, clinics and municipality services

and many of the basic services that are affected by austerity measures.

 

The current fiscal policies favour the affluent, widening the gap between the rich and the poor, perpetuating inequality. It is a rational, senseless and reactional. As the EFF, we have called for an increase in all social grants. We must increase the Child Support Grant, from R510 to R1 020. We must increase the foster tech fund, from R1 130 to R2 260 and we must double all other social grants to protect the most vulnerable.

 

 

Yes, indeed, all this is possible. The EFF is on record calling for the rejuvenation and growth of the economy through large scale industrialisation and an education system that prioritises technical skills. We must introduce a grant for all unemployed graduates. We must review and reduce the VAT Act to 14%, remove all the lies we have been told, and then we can look at expanding the 0-rated food basket.

 

 

We must increase subsidies for buses to make public transport affordable. We must review the fuel levy as a matter of urgency, with the intention to reduce it with immediate effect and stop these excuses of blaming international world on fuel price. We must reintroduce subsidies for farmers and rebuild

all food markets to make food much more affordable. This can also be extended to all the farms that have been restituted.

 

House Chairperson, deep ... [Inaudible.] ... in short-to- medium-term solutions to the inflating cost of living.

Additionally, we advocate for stronger regulations against monopolistic practices in key sectors, to promote fair competition and lower prices for consumers. We need to invest in sustainable energy sources to reduce our dependence on expensive imported fuel. In the long term, we must grow the economy and redistribute wealth to the majority of our people.

 

 

Towards closure, the need comprehensive for a comprehensive security system that protects the unemployed, the elderly and the disabled, is more urgent than ever. We know that the ANC does not have the capacity to grow the economy. The EFF is going to win the elections in 2024, and will implement all these relief measures.

 

 

It is only the EFF-led government that will protect the vulnerable poor and the working class. It is only the EFF-led government that does not make promises, but makes commitments. So, the EFF-led government is committing to the people of

South Africa that, in 2024, they must do the right thing to remove the ANC.

 

Remove the ANC, because it continues to help the colonials in this country. They continue to push the reform agenda that is colonially inclined. They continue with their neoliberal policies. We must remove them, and put in, the government that relates to the people: The EFF-led government. Thank you very much.

 

 

The ACTING HOUSE CHAIRPERSON (Mr M G Mahlaule): The next speaker is hon Inkosi Buthelezi.

 

 

Ms L L VAN DER MERWE: House Chairperson, let me then rather take it on his behalf. If you would allow me.

 

 

The ACTING HOUSE CHAIRPERSON (Mr M G Mahlaule): Carry on.

 

 

 

Ms L L VAN DER MERWE: He is having connection issues. Hon House Chairperson, we thank the DA for tabling this debate and the IFP is in support of expanding the zero-VAT-rated food basket as food is a basic necessity that no South African, regardless of their socioeconomic circumstances, should have

to go without. However, today we are once again scratching the surface of a much deeper and widespread challenge.

 

It is therefore unfortunate that the subject for discussion takes a one dimensional view of the circumstances faced by those who are destitute in our society. Therefore, I want to cut right to the core of the elephant that we cannot leave unaddressed in this room. The reason behind the need to expand the list of zero-rated food items is the economic chaos and disarray that the uncaring and greedy ANC-led government has plunged our country into. Youth and those willing and able to work are faced with a staggering unemployment rate. Mafia style criminal networks and organised crime syndicates are bleeding our country dry. As ... [Inaudible.] ... amount to a loss of R155 billion each year and the ANC-led government is doing nothing about it.

 

 

Systems of a corruption are so deeply entrenched in the inner workings of most government departments and its entities, leaving South Africans without basic services such as water and electricity. Expanding the list of zero-rated food items will not help with these problems at hand because the destitute people still do not have money to buy these items. It is the responsibility of the government to create

employment opportunities for those who are impoverished to earn an income so that they too can buy food.

 

South Africans do not want to be pitied; they want to be empowered. And they can only be empowered if we rid this country of the corrupt leaders and officials and systems that are preventing the creation of new and innovative employment opportunities. The ANC-led government has created a culture of cycle and dependency in this broken economy, which has always been at the expense of the majority of the poor South Africans. Under their leadership, those that are rich, have become richer. They continue to grow their wealth well. While those that are poor, have lost their very little that they’ve got.

 

 

Therefore, as much as we support this debate, the fact of the matter is that this ANC-led government has created a situation where the majority of South Africans cannot put food on their tables. It is therefore the IFP’s hope and conviction that come 2024, South Africans will use this opportunity to change their government. To bring about the much-needed change in the socioeconomic circumstances so that we can uplift the vulnerable in our society. The IFP stands ready to empower the

poor. Stands ready to empower the marginalised. And we Chairperson, will put South Africans first. I thank you.

 

Mr W W WESSELS: House Chair, it is very interesting that the hon Deputy Minister Masondo is all of a sudden completely against expanding the zero-rated food basket. Because last night, the ANC accepted and approved a report, in Parliament, in the House, that recommends that such basket must be expanded. So, he must maybe read the documents in front of him, and he must maybe tell us, is he speaking on behalf of himself, on behalf of National Treasury, or on behalf of the ANC. And the ANC members must maybe tell us what the stance really is of the ANC after accepting a report that recommends such, the Deputy Minister says he is completely against such.

 

 

Let me also thank the hon George, for this subject of discussion, which is extremely important. It is also astounding that the hon Masondo says that South Africans are experiencing challenges. That’s an understatement of the reality. South Africans are experiencing a crisis. South Africans are suffering. The poor are getting poorer. The expanded unemployment rate is more than 40%. More than 40% of South Africans are unemployed. It is estimated that 50% of South Africans will be food insecure by the year 2025. That is

in less than two years. That is why short-term measures are needed - not only to provide relief to the cost of living crises experienced by poor households - but to also stimulate economic growth. The hon Masondo’s arguments are completely wrong because saying that middle and higher income households will benefit the most from such expansion, and to say that that is a barrier to do it, is completely ill-thought.

 

If middle and higher income households have more disposable income because of more zero-rated VAT items, there is more money spent in the economy, that leads to economic growth and that will also lead to a higher tax revenue because zero-rated items form part of the value chain. So, it is on the one hand providing relief to poorer households and on the other hand actually expanding the value chain which will lead and ultimately to a higher revenue income. But the hon Deputy Minister is also wrong to say that if there is less VAT revenue, it will be detrimental to pro-poor projects because currently, tax revenue is misused, and this government is not pro-poor.

 

 

We need a caring government that has policies that are there to expand the economy because in the long-term, the only way to get people out of poverty and to solve this crisis, is by

ensuring sustained economic growth. Black Economic Empowerment has failed. It’s a fact. People are suffering. And it is also a fact that ANC policies will not solve the economic crisis.

We need a new government with policies that will work. The only way to rebuild the South African economy and to restore the dignity of South Africans is to get rid of the ANC government in 2024. I thank you.

 

Afrikaans:

 

Mnr J N DE VILLIERS: Voorsitter, dit is vir my kommerwekkend hoe gereeld stygende lewenskostes ’n algemene gesprekspunt rondom Suid-Afrikaanse tafels geraak het. Van gespreke rondom die drastiese verhoging van vleis, melk, eiers en ander belangrike kos tot die groot kommer van huis en motor paaiemente wat besig is om deur die dak te styg, terwyl krag en petrol ook net duurder raak.

 

Terwyl inflasie net besig is om te vererger, waarsku en praat die DA al vir meer as ’n jaar van die dreigende ontwikkeling van ’n lewensonkoste krisis. Ons het baie klem gelê op hoe lae inkomste broodwinners en families drasties geraak word en my kollega, agb Masango, het mooi uiteengesit watter groot maatskaplike krisis besig is om te ontvou vir die armste dele van ons samelewing.

Dit is ook belangrik om te begin beklemtoon dat stygende lewensonkostes nie meer slegs ’n krisis vir lae inkomste families is nie maar ’n baie groter en breë probleem is wat amper elke huishouding in Suid-Afrika affekteer, en nou veral die middelklas. In die huidige ekonomie raak dit al hoe moeiliker vir ’n middelklas familie om die huis se somme te maak klop. Mense sukkel om kos op die tafel te sit en dit is nie slegs lae inkomste families nie. Suid-Afrikaners het groot skuld en tesame met rentekoerse wat met amper 5% in die laaste twee jaar alleen verhoog het, skat die SA Reward Association se navorsing dat Suid-Afrikaanse families 73% van hul huishoudelike inkomste op die afbetaling van skuld spandeer.

Prakties beteken dit dat soos rentekoerse opgaan, raak dit net meer onmoontlik vir middelklas families om hul motor en huis finansiering, hul kredietkaarte en hul winkel rekeninge te betaal, en dit is voor hulle nog met die stygende inkomste van kos op die tafel sit, sowel as met die aankoop van elektrisiteit en petrol moet byhou.

 

 

Om te illustreer dat ek nie net probeer om dramaties te wees nie, kom ons maak die somme. ’n Tipiese Suid-Afrikaner met ’n huislening van R1,5 miljoen, motor finansiering van

R300,000 en ’n persoonlike lening of ’n uitstaande rekening van R50,000 betaal vandag ’n konserwatief geskatte R5,500 meer

as twee jaar gelede, November 2021. So wat beteken dit? Dit beteken dat die individu amper R9,000 meer ’n maand of R106,000 ’n jaar meer moet verdien as twee jaar terug net om by te hou, net om met die verhogings in hul skuldbetalings te kan bybly.

 

 

Omdat die DA omgee, sit ons al oplossings op die tafel vir meer as ’n jaar. Ons het voorgestel en geïllustreer hoe petrol- en dieselkostes met amper 30% afgebring kan word as die regering al die onnodige belasting wat daarop gehef word, veral die triple [driedubbele] Padongelukkefonds, afhaal. Ons het voorgestel dat daar sekere belangrike kos items soos hoender, beesvleis, blikkies bone, meul, grondboontjiebotter,

tee, koffie, babakos en soppoeier van BTW vrygestel moet word.

 

 

 

Hierdie voorstelle is afgeskiet en in sommige gevalle afgelag. Dit is simptomaties van ’n ANC regering wat so verwyder is van die daaglikse uitdagings wat Suid-Afrikaanse broodwinners moet oorkom dat hulle net eenvoudig nie omgee nie. Ek verwys na die Adjunkminister, agb Dr Masondo ... sy aanmerking vroeër dat die DA se BTW voorstel ’n slegte idee is want middel inkomste huishoudings die meeste daarby gaan baat. So dit is hoe min die ANC vir die middelklas omgee, dat selfs al gaan die DA se BTW voorstel almal, veral die armste in die land help, is dit

nou ’n slegte idee omdat dit blykbaar die middelklas die meeste gaan baat. As dit nie ’n voorbeeld is van hoe verwyder die ANC van Suid-Afrikaners is nie en hoe min hulle belangstel om mense se lewens te verbeter, dan weet ek eintlik nie watter ander voorbeeld mens hoef te gaan soek nie. As die ANC omgegee het was die DA se voorstelle maklik om te implementeer want dit sal mense help. Daarom is ons opgewonde oor 2024 se verkiesing want dit is die geleentheid vir Suid-Afrikaners om vir ’n party te stem wat nie net werklike oplossings het nie maar ook werklik omgee. ’n Stem vir die DA in 2024 is ’n stem vir lae lewensonkostes. Dit is ’n stem vir meer werk en dit is ’n stem vir ’n beter lewe in ’n Suid-Afrika wat werk. Kom ons red Suid-Afrika. Dankie, Voorsitter.

 

 

Ms Z NKOMO: House Chairperson and hon members on the platform, since the ANC took over government in 1994, we promised our people that we will improve their living conditions by amongst things ensuring that they have access to basic services including housing, clean water, sanitation, education and electricity.

 

The 2022 censors report from Statistics SA has factually demonstrated in no uncertain terms that indeed South Africa is a better place than it was in 1994. To illustrate the point a

number of people who have decent houses were 65,1% in 1996. This has increased to 85,5%. The proportion of households using electricity as the main source of energy for lighting increased significantly from 58,1% in 1996 to 94,7 in 2022, which is 82,4% of household in the country had access to pipe water either inside their dwellings or inside their yards.

Anyone who slighted suggests that the ANC has not increased the better life for the people of this country would be dishonest.

 

House Chair, statistics tells us that the old, the young, the disabled and the unemployed are taken care of by the ANC-led government every month. Despite fiscal constraints we deliver services to our people to enable them to navigate the increasing cost of living that affects all of us. Some of us may undermine these interventions but they make a huge difference to more than 18 million people in this country.

Roughly, 7,8 million people led by the social relief of distress grant, SRD, grant and around 60% of the government’s budget is spent on social wage to combat poverty, hunger and to protect the most vulnerable and those affected by the rising cost of living.

Notwithstanding the intervention this does not mean that our economy is not faces with structural constraints that stifle transformation, the high level of inefficient form of concertation in the economy is a serious stumbling block that needs to be addressed and treated with the necessary urgency.

 

 

The Competition Commission has played an important role in combating instances of cartel products by the dominant firms which includes collusion between competitors and unjustified inflation of prices and the abuse of market power by firms that has large market share. Since the outbreak of the pandemic the Competition Commission has acted against firms which inflated the price of goods and at the expense of South Africans. In 2020, Dis-Chem was fined R1,2 million for excessive pricing of face mask. In excess of R14 million was collected from various companies due to excessive pricing and abuse of dominance cases. Who can forget the R1,9 million fine that the Competition Commission imposed on the bread cartel for colluding to inflate the price of bread which included companies like Sasko and Pioneer Foods. All these find themselves back to the national reserve funds and are used to fund other programmes to support small business and social spendings on education, health care and others.

We are raising this point to address that addressing the cost of living is not a simplicity and one dimensional as the DA has projected. There are many layers to it, and it requires multipronged approach at the centre of addressing the problem of the cost of living is structurally transforming our economy.

 

 

House Chair, it should be noted that the main underlying driver of inflation is external, namely, the increase in fuel and food prices. Due to the war in Ukraine, not only did oil and gas prices shoot up sharply following the invasion, but the agricultural crops such as wheat also felt the impact.

This owe due to the Ukraine being the sixth largest exporter of wheat in the world. With the war in Ukraine wheat production and crops from Ukraine have dropped significantly. We need to strengthen our resistance to such unpredictable global shocks to reduce South Africa’s vulnerability.

 

 

Hon members, to turn for political posturing to gain political mileage will not move our country forward. Instead, we need to work together to better the lives of our people. It is during these tough times that we need national consensus in order to reset our economy and take the country back to upwards trajectory.

While we cannot as yet substitute oil import, we can most certainly encourage our farmers to plant more. This is why government has provided support and encourage communities to plant their own vegetable gardens to feed their families. Many of these initiatives have already striving and form the backbone of not only the survival, but also healthy living for many households.

 

The ANC uses the land reform policy to broaden the ownership of the economy by increasing participation with the agricultural sector thus contributing to the eradication of the triple challenges of poverty, unemployment and inequalities. In the last three years about 170 254 hectors of land acquired under government, proactive and land acquisition. Strategy has been released as part of the Land Act distribution programme. About 81 101 hectors of land were allocated to women with 444 216 hectors allocated to youth and

489 hectors were allocated to people with disabilities. We need to enhance increased access to land to create a fertile environment for local emerging farmers. We further need to ensure that land under communal tenure is used productively and used for food production. Agriculture remains an important sector in our economy with the potential to create the much- neede job opportunities. In the first half of 2023, the sector

grew by 7,8% and it created 61 000 jobs making it the fastest growing sector. This growth signifies the importance and the in fluence of the sector in country’s economy. The sector contributes about 2,5% to the gross domestic product. Although this is minimal we are witnessing growth in the sector as part of economic reconstruction and recovery plan.

 

 

Through the various social compacts government has entered into with the private sector in partnership with the Shoprite retail stores. Active investments are being made with businesses by enhancing food security at the community and households level through the gardening programme which benefits 61 834 and providing 101 million nutritionally balanced meal to children in the early childhood development and soup kitchens amongst others.

 

 

The ANC-led government through the Department of Agriculture has also entered into partnership with the Japan International Cooperation Agency to provide training to improve the marketing skills of smallholder producers through the smallholder horticulture empowerment programme.

 

 

One of the critical measures that the government employed in mitigating against the rise of the cost of living is the

promotion of community and households food gardening. The department has overtime created over 3 500 food gardening with close to 64 000 households’ profile.

 

Though the climate resistance agricultural programme, government is able to provide various skills and training opportunities in households food gardening, financial management, training and community-based, planning and training indigent seed production.

 

 

We acknowledge that a lot more need to be done to address challenges within the agricultural sector. For instance, one persisting change is that funding framework in the country does not appear to be geared to emerging farmers and caters more existing commercial farmers. The competitive landscape in a set has thus imbalance as emerging farmer have to overcome structural regulatory and behavioural barriers. In order to compete effectively to overcome this we need to better co- ordinate the funding between our development finance institutions, DFIs, commercial banks and government.

 

 

In conclusion, we are very resilient as a nation, and we do not give up in a face of adversity. Whatever challenge we face as a country our people are able to unite and confront them.

It is on this account that we join the President in calling for a social compact within the agricultural sector that will ensure that it flourishes and job opportunities are created. We will continue to intensify our efforts to reduce hunger, a crisis that require a collaborative effort across all stakeholders – agriculture, manufacturing, retailer, government and nongovernment institutions. I thank you, House Chairperson.

 

 

Ms M D MABILETSA: Hon Chairperson, the ANC regards the subject for discussion with great importance. It is unfortunate that the political party that is the sponsor of the discussion has very little experience mastering the subject matter. As we speak the city of Cape Town is being litigated against for going outside the parameters of what National Energy Regulator of SA, Nersa, said in terms of an electricity increase and the city has imposed an additional 2% on the people of the Cape Town Metro making it the most electricity in the country. Yet, they have the audacity to talk about the cost of living crisis when they themselves are responsible by enforcing additional administrative pricing on the citizens of Cape Town.

 

 

The ANC-led government has long introduced legislative and regulatory measures that provide relief for the indigents. The

working class and the middle structure of our country through a host of ... [Inaudible.] ... determined support measures.

 

When the ANC-led government expanded the zero-VAT rated food basket, we were criticised by the same DA that we are creating a fiscally unsustainable situation and driving up debt levels. As the ANC, we were focused on the plight of our people, while the DA was trying to tell us that we cannot manage a budget.

Suddenly today, we are supposed to believe that they have transformed themselves and become the advocates of the poor.

 

 

Let us correct the misleading media campaign of the DA and Mr George. In an interview with eNCA he said that the Standing Committee on Finance has backed the DA position on expanding the zero-VAT rated basket of food.

 

 

Yesterday in the National Assembly, when the ANC chairperson of the Committee on Finance tabled the report which was approved by the House, the DA objected to the report. They did not approve the report. That means part of the report speaks to the expanding of the food basket of zero-VAT rated foods they objected to. Today they bring us this debate.

Mr George, opportunistically in the eNCA interview stated and I quote, “We as the committee supported the DA on the expanded zero-VAT rated foodstuff.” We did nothing of the sort. Our moving to adopt the report was on the basis of a long-standing position that the ANC has held when we incrementally pushed for an increase in the basket of foodstuff to be covered and which is what it is today.

 

Let us be clear, the 10 additional items that the DA want to add to the zero-VAT rated basket of foodstuff has everything to do with election politicking. Why did they not support the ANC when stating as far back as 2012-13? We drove a move to form the tax system which included a range of other measures including expanding of zero-VAT rated foodstuff.

 

 

At the same time, the ANC drove a review of the social security system in a move to watch comprehensive social security which today we have a White Paper which holistically addresses a support net for the poor. It is the most comprehensive support net amongst developing countries in the world.

 

 

The ANC is the party through its government that bought about the indigent programme of support by municipalities for

families who are in the state of destitution. A remarkable successful programme weakened by municipalities by not updating their registers. So, to want to claim an easy victory because of the work of the Portfolio Committee on Finance on a report that the DA objected to lacks integrity, Mr George.

Worse, it is the sheer opportunism of telling the media that next week on Tuesday, when the Portfolio Committee on Finance deal with the Rates and monetary Amounts and Amendments of Revenue Law Bill the Minister has the opportunity to increase the zero-VAT rated basket of foodstuff. He goes on to say the Minister will not do it because he is opposed to it. He backs up this claim by saying they matched to the Minister’s Office and got no response.

 

 

Any consideration of a change to zero-VAT rating on food requires a financial analysis and its impact on the revenue of the fiscus. He dismisses this by saying, “You can do it right now. There will be no pressure on the fiscus.” He provides no factual evidence for his claim. Ask any economist in such a statement makes sense, it does not.

 

As the ANC we support the expansion of the zero-VAT rated basket of foodstuff, but it has to go through a financial

analysis process, so that the implications are understood before any implementation.

 

The legislation is before Parliament now for consideration and the first opportunity that the Minister will have is in the February 2024 Budget. Nothing stops him from approaching the chairperson of the Portfolio Committee on Finance and asking for a meeting with the Minister to discuss the matter. He says the Minister is refusing to convene a panel on the matter. Let the Minister speaks for himself. We do not want to hear stories from their election programme. Our proposal which shapes the Davis Tax Commission recommendations to the Minister of Finance and Cabinet remain a framework within which any discussion must take place. What remains central are the needs of those who are struggling under the costs of living. We must therefore tackle monopoly pricing tendencies and corruption in the private sector, as the state does not manufacture food and deal with administrative pricing.

 

 

Progressive state reforms, infrastructure investment, a strong anticorruption strategy, creating growth and jobs is the methodology of the ANC-led government in dealing with the costs of living. Thank you, Chairperson.

Dr D T GEORGE: Hon Chairperson, I want to thank the participants in this debate. It is a very important matter when South African households are battling to put enough food on the table and many of our people are going hungry as a reality of starvation is spreading. Under these circumstances, government must respond in a country such as ours that is actually a rich country, nobody should be starving. Nobody should be starving. That requires government to make the right economic policy choices. Government has positioned its current choices as a zero-sum game. As revenue shrinks it must cut expenditure and it is not able to make the hard policy choices that are required.

 

 

It needs to change the model for state-owned enterprises. It needs to cut the bloated Public Sector Wage Bill and it needs to scrap the cadre deployment that has hollowed out the public service and institutions vital to our democracy.

 

 

What government is not focussed on is the actual solution to this problem. Economic growth – if our economy grows, it can generate the revenue required to effectively fund service delivery, generate the jobs that will lift communities out of poverty and fund a viable social security next to support the most vulnerable South Africans.

It is possible in immediate term to provide relief to battling households. All that is required is for government to care enough to act. Government has not responded to the cost of the living crisis because it is out of touch and simply does not care about the most vulnerable South Africans and hardworking South Africans who are battling to pay their mortgages, the school fees and maintain the lifestyle they worked so hard to achieve.

 

 

Government can respond immediately to cut the tax and levies on fuel, expand the zero-VAT rated basket of food, increase the child grant to the poverty level and fund the extension of the Social Relief of Distress Grant.

 

 

We have noted that the Standing Committee on Finance has endorsed the DA’s position on zero-VAT rating more food items. That what needs to be clarified is whether this will result in actual amendments or whether this is a merely election lip service.

 

We also need clarity on whether VAT on other items will be increased. The DA will not support any increases next year. South African households are already battling enough.

Hon Masondo, the time for talking is over. The people want action. The fact is that South Africans are going hungry and all you have to offer is excuses. You clearly do not care about the people, nor have you read the committee recommendations as the hon Wessels points out where ANC members support the expansion of the zero-VAT rated basket because they want action too. Your economic policy is clearly gobbled.

 

 

Hon Mabiletsa, you have misled this House. We rejected the report because it sets out the ANC’s failed economic policies. We always have supported an expanded zero-VAT rated food basket and we welcome your support of our position. We will speak more on this into the future, absolutely before February.

 

 

We all agree that we have accost of living crisis in South Africa and that government must act to relieve the pressure on the battling households. It just need to care enough to be moved to action. Thank you, Chairperson.

 

Debate concluded.

 

 

CLIMATE CHANGE MITIGATION AND ADAPTATION STRATEGIES

(Subject for Discussion)

 

 

 

Mr B S YABO: Chairperson, according to the Notre Dame Global Adaptation Initiative, South Africa is ranked 95th out of 185 countries that are susceptible to climate change. It is predicted that South Africa is under threat of being struck by extreme weather events such as floods and droughts, which will have a negative impact on water security and social infrastructure. Greenpeace affirms our country’s crisis by asserting that 80% of South Africa’s land area is classed as semi-arid to arid, with just 18% classified as dry subhumid to humid.

 

 

One of the biggest contributors to extreme weather patterns is the El Niño-Southern Oscillation, ENSO, which alternates between the El Niño and the La Niña cycles, creating dry and rainy periods respectively. More research must be funded and conducted to gain deeper insight into ENSO to mitigate against extreme weather conditions brought about by the natural phenomenon. These climate changes are also said to be rooted in high emissions of greenhouse gases alongside the reduction of rainfall and rising temperature levels, which lead to lower water levels in sources such as dams and rivers.

The residents of Cape Town will recall all too well the first- hand effects of such consequences during the drought of 2018 when the city’s water supply was severely under pressure, resulting in taps being shut down, forcing residents to rely on alternative water sources. Nelson Mandela Bay was also about to run out of water in 2022 when the dams were headed 3% water volume. During this period, we also witnessed how a lack of a consistent water supply exacerbates socioeconomic challenges and widens the inequality gap through worsened existing vulnerabilities such as poverty, malnutrition, and poor health. This is because climate change disproportionately affects the poor and vulnerable through limited response and adaptability capacity, reduced productivity, and employment prospects, which creates an unstable environment that further deteriorates their precarious economic standing.

 

 

In addition, decreased water availability has an impact on people’s health and hygiene, particularly in disadvantaged communities where access to clean water may already be constrained. This is because floods worsen service delivery seriously, as well as rains ... the risk of water borne illnesses. Furthermore, one of the pressing challenges of water scarcity is its effect on food security, particularly in the wake of the increased population of the increased

population by 19,9% from 2011 to 2022. According to the National Census of 2022, this is especially troublesome as a large portion of agriculture is rain-reliant and greatly dependent on steady water supplies. The effect of this therefore results in strained agricultural output, leading to higher food prices, increased import demands negatively affecting our gross domestic product, GDP.

 

As noted, the effects of climate change are far-reaching, and even extend to our social infrastructure, for example, the effectiveness of our hospitals and schools is dependent on a reliable supply of safe water. Lack of water security affects the quality of treatment patients receive and their recovery. It impacts the hygiene of our schools and may result in forced school closures, which is disruptive to the education of learners.

 

 

Climate change also increases the risk of natural disasters, which have a multitude of effects, including displacing people and increasing the likelihood of disease outbreaks. Again, we are all too familiar with these effects as evidence during the KwaZulu-Natal floods, which resulted in over 400 fatalities with more than 12 000 houses destroyed and more than 40 000 people displaced. During such catastrophes, people are

displaced because of losing their homes and being forced to relocate, often to temporary shelters with minimal services. These effects can also have long-term psychological effects on the victims, such as stress and trauma.

 

As we witnessed, floods, like other natural disasters induced by climate change, have a significant and varied social and economic impact on our public infrastructure, such as buildings, roads, bridges and utilities like water and electricity, for instance, while roads and communication lines are damaged, it isolates communities and makes it difficult for them to access assistance and critical services such as hospitals, emergency responders and food markets. Therefore, these consequences have a trickling effect on the development of the country and the government’s ability to deliver services to its people. In turn, this also has huge financial implications as resources need to be allocated towards social assistance, recovery, and reconstruction efforts.

 

 

The ANC government has been improving the disaster management system over the years. However, to minimize the impact of natural disasters because of climate change on social infrastructure, more innovative, resilient, cost effective and cutting-edge construction materials and methods need to be

employed post ... [Inaudible.] ... Climate change is not unique to South Africa, but it is a global crisis which requires collaborative efforts. To reduce carbon dioxide emissions, encourage water conservation, and recycling, as well as the adoption and implementation of more environmentally-friendly policies and practices, such as investing in renewable energy and preserving and restoring natural ecosystems which play a vital role in mitigating climate change impact.

 

As the ANC, we recognize that the realization of a united, non-racial, non-sexist, democratic, and prosperous country cannot be achieved without a profound appreciation and preservation of the world we live in and its natural

resources. Combating climate change is a critical component of our development agenda because its effects pose serious risks in reversing the democratic gains achieved in improving the lives of our people in a variety of areas, including housing, health, education, water and sanitation, and many areas of development. We need to deepen disaster risk management measures and disaster financial instruments through disaster insurance to ensure the availability of funds to respond to the impact of natural disasters. I thank you, Chairperson.

Mr D W BRYANT: Hon Chairperson, last year the City of Cape Town, run by the Democratic Alliance, was recognised by the Carbon Disclosure Project as one of only two cities in Africa to have shown climate leadership. This has been achieved largely by investing in and maintaining existing infrastructure and embracing the value of the private sector.

 

 

The City of Cape Town generates additional energy from a large hydroelectric plant, which has been well maintained by the DA government, and this reduces the impact of blackouts on residents of the city. These initiatives have led to a marked rise in semigration by South Africans from other cities to Cape Town. This increase in semigration is also because the

DA-led Cape Town is creating far more jobs than any other city in South Africa. In fact, over 200 000 new jobs in the past year alone.

 

Climate change has created intermittent rainfall patterns across the country, and more people and businesses are being severely affected by drought. South Africa is heavily reliant on rainfall and apart from the DA-led Western Cape, none of the other provinces seem to be doing anything about it. The ANC can point to all the problems, but the reality is that their governments are unable to follow through on delivery.

It's very likely that this negligence and lack of forward planning from ANC-led provinces will lead to more severe water shortages in the near future. It doesn’t have to be this way though.

 

In 2017 Cape Town was faced with a severe drought crisis. This one in a 400 year drought made international headlines, with many critics expecting the city to run out of water, but instead of sitting back and accepting its fate, the DA-led administration got to work implementing a series of mitigation and adaptation strategies geared towards preventing the so- called day zero and simultaneously building resilience into the system. This led to the development of the first of its kind “Resilience Strategy”, which has garnered international acclaim.

 

 

Crucially, our successive DA governments have ensured that the City of Cape Town administration has not been hollowed out by ANC cadre deployment in the same way as so many ANC-led municipalities have been. This meant that during the drought crisis, the City of Cape Town had at its disposal a team of experienced and dedicated officials who worked day and night to achieve its goals.

The DA-led City of Cape Town used a combination of sustained public communications and innovative engineering solutions to address the crisis. We brought in professionals from business and academia to provide guidance and set up a high-quality task team to assist. Because of the high levels of expertise that we retain and many years of quality maintenance of infrastructure, Cape Town was able to accurately measure its daily drinking water production as well as its dam levels.

This helped the DA-led administration to target water usage for each resident per day to help us make the water that was available last for longer.

 

Along with exploring new water sources in a sustained communications campaign, the city expanded its pressure management technology and has been able to reduce leaks and bursts and drive down consumption. Under Mayor Jordan Hill- Lewis, the City of Cape Town continues to invest in water saving technologies and is investing in improving the Potsdam water treatment facility to improve the quality of treated sewage being released into the ocean. These steps are in stark contrast to other parts of the country under ANC control.

 

 

Earlier this year, a question from the DA exposed that approximately 77% of all sewage being released via coastal

marine harmfuls is coming from the ANC governed province of KwaZulu-Natal, and the majority of this is being released into sensitive estuaries.

 

In the ANC-led eThekwini Municipality a whopping 75% of the 27 sewage treatment plants are unable to treat effluent to minimum standards. Damaged sewage pipes often take months to fix and in the process discharge rivers of raw waste into environmentally sensitive areas. This has raised concerns regarding the overall quality of water at many Durban beaches, particularly over the holiday seasons.

 

 

The terrible and unprecedented floods that impacted KwaZulu- Natala caused severe damage, but more should have been done to prevent the scale of the devastation and the local municipality should have ensured that drainage infrastructure was properly maintained, and planning regulations complied with in high-risk areas.

 

 

The considerable amount of the infrastructure that was damaged during the floods has still not been repaired. I personally visited areas in Phoenix last year where literal rivers of putrid raw sewage were running out of broken pipes into the river system right next to residence homes. This is sadly the

case across South Africa where the ANC is in government. Residents of KwaZulu-Natal and other ANC controlled provinces know that the ANC simply does not care about them, and they will be making this known in the elections next year. Thank you.

 

 

Mr M N PAULSEN: Hon Chair, firstly let me just address the hon Yabo. Hon Yabo, the climate crisis and its impact are no longer just threats; it’s real and it is here. Water and climate change are inextricably linked. Extreme weather events are making water more scarce, more unpredictable and more polluted. Climate change also leads to an increase in extreme weather conditions and natural disasters.

 

 

Awareness, education, preparedness and prediction and warning systems can reduce the disruptive impacts of a natural disaster on communities. Mitigation measures such as adoption of more environmentally sensitive zoning, land use practices and building codes are needed to prevent or reduce actual damage from hazards.

 

Availing land through land expropriation without compensation for human settlements in more conducive locations, thereby avoiding development in landslide prone and flood prone areas

for planning and zoning will reduce the loss of life and damage to property and natural resources.

 

Climate change also impacts the entire water cycle, threatening sustainable development, biodiversity and people's access to water and sanitation. The average rainfall for South Africa is around 450mm per year, which is well below the world average of about 860mm per year.

 

 

As policymakers we must put water at the heart of our climate action plans. Sustainable water management would help us adapt to climate change by building resilience, protecting health and saving lives. It also mitigates climate change itself by protecting ecosystems and reducing carbon emissions from water and sanitation, transportation and treatment. The bulk of our water use is driven by economic uses of water and socioeconomic standards of living. In addition to quantity and quality requirements, greater assurance of supply are also required as our dependence on the availability of water increases.

 

Due to the economic benefit gained from the use of water in activities such as agriculture, mining and industry the requirements for a secure supply of water are increasingly

stringent. South Africa’s main source of water is retention dams and rivers from where water is released to serve our various needs. Water is transferred from dams to our water treatment plants to ensure that the water is safe for human consumption. Raw domestic wastewater is hazardous and must be treated before being released back into rivers or the ocean in order to prevent any negative impact on public health and safety. Treatment of wastewater is critical for public health and safety because it aims to reduce suspended solids, nutrients such as nitrates and phosphates, biodegradable organics and pathogenic bacteria.

 

The first Green Drop public report since 2013 reveals an alarming and unacceptable sight of wastewater treatment works in the country. A number of 334 wastewater treatment works, 39%, out of 955 systems are classified as critical. This is due to weak management and lack of competent and experienced technical staff.

 

 

Poor quality effluent is being discharged into the environment. The more polluted the water sources are, the more expensive and difficult it is to treat the water for human consumption, but more importantly is the danger it presents to public health. The City of Cape Town pumps up to 39 million

litres of essentially raw sewage out to sea daily via marine protected areas in Camps Bay and Hout Bay. Beachgoers in Cape Town are treated to islands of floating sewage along with used sanitary pads, tampons and condoms. We should not overlook the huge loss of water due to the neglect of our water supply system.

 

 

Jobs in the maintenance of our water supply, water preservation and recycling will form part of the EFF-led government’s 1 million climate jobs programme. Voters should ensure that they are registered to vote for an EFF government on 18 and 19 November, this weekend, to ensure that we put in place a government capable of addressing the huge malaise that has beset our public service. Thank you very much.

 

Mr N SINGH: Hon Chairperson, climate change mitigation and adaptation strategies to conserve water and minimise the impact of natural disasters on the provision of essential services particularly in our rural areas of the utmost importance to our nation. Such mitigatory strategies will directly and positively affect our present and future generations.

Chairperson, like many other countries, South Africa is grappling with the adverse effects climate change. Our rural areas which are already vulnerable due to various socio- economic factors always bare the brunt of these challenges. Climate change can already be linked to increased frequencies of extreme weather events such as the large-scale flooding which we have seen in KwaZulu Natal and the Western Cape, irregular rainfall patterns, prolonged droughts and sudden storms.

 

These phenomena which are becoming part of our daily lives severely impact the availability and accessibility of water and pose an additional challenge in providing services especially in our rural communities.

 

 

Chair we must focus on mitigation and adaptation strategies to address these challenges effectively. Regarding mitigation, reducing greenhouse gasses towards zero must be prioritised.

This will involve adopting sustainable practices and justly transitioning to a clean and renewable energy future.

 

Renewable energy sources must be explored and not just be given lip service, and the government must invest in innovative renewable energy supply in partnership with the

private sector. The energy supply grid must be opened, and the legislative space deregulated so that private enterprises can assist with national energy supply deficits and innovation into energy efficient technologies.

 

A low carbon economy will enable us to renew some carbon footprints and mitigate the effects of climate change and water resources and essential services.

 

 

Hon Chairperson, mitigation alone is only one part of attendance solution and adaptation strategies are equally important especially in our rural areas with high vulnerability. Hon Chairperson, when we come to the consequences of natural disaster, I think government must take collective responsibility for the consequences of some of the disasters, whether they are floods or winds or whatever other kind of damage.

 

 

Because I want to put forward a proposition that a lot of work can be done by government and the authorities especially local government. When relocating people or allowing people to build homes in informal settlements. Now we know that urbanisation is the phenomena that is here to stay, we know that we will never be able to provide adequate housing hence you have

informal settlements because people move into the cities to get jobs.

 

In many of instances where disasters have taken place and we find that there is even loss of life, you find that these homes are built on floodplains or built in areas with very loose soil as we saw in Inanda. Hon Chairperson, there are still bodies that have not been recovered in that area as homes were washed away down the hills into the rivers.

 

 

Now, I think we need careful planning in this regard and local government must be able to take step. When people start occupying an area, to ascertain whether that area is in the short term suitable for any kind of structures to be erected. We need to identify areas where these homes can be built on a temporary measure before government can provide proper housing.

 

 

Climate change poses a significant threat to our areas and the provision of basic services and mitigations are essential to conserve water and minimise. The government really needs to be mindful of the challenges of implementing strategies and we really need to do more, and I think we can do more to prevent

some of these consequences of natural disasters. I thank you very much hon Chair.

 

Dr W J BOSHOFF: Hon Chair, I would like to ask for permission not to show my video due to signal issues.

 

 

THE ACTING CHAIRPERSON (Mr M G Mahlaule): Go ahead.

 

 

Dr W J BOSHOFF: Hon Chair, climate change is one of the central problems facing the new generation growing up now. It have been speculated about whether it’s real or not but it is indeed upon us. One of the questions is the human responsibility for this phenomenon although I don’t have a lot of doubt about it, there are many people and the growing number of people asking whether that is really the case.

 

 

However, if I understand the topic of this debate correctly, it’s not about climate change and energy and all the different causes for the phenomenon but what we are going to do regarding water. Now if you look at the nature of water, there is just a fixed amount of water and it could be either in the form of fluid or it could be in the form of gas in the atmosphere.

If we could choose that we want the right amount of water at the right place at the right time but that very seldomly works like that especially in countries like South Africa with a very variable weather pattern over the long term where we either have too much or too little water.

 

 

Surface water has the characteristic of moving very fast and causes a lot of damage and does not move upon water waves which are generally used for water like rivers and natural lakes and so forth.

 

 

Afrikaans:

Ondergrondse water aan die ander kant beweeg geweldig stadig en dit word skoon soos wat dit voort beweeg. Dit is eintlik baie belangrik om water so vinnig as moontlik onder die grond in te kry en daarom behoort elke grondgebruiker, of dit nou privaat, regering of maatskappye is, die slagspreuk te hê, geen water vloei van my grond af wanneer dit reën nie.

Daarvoor maak ’n mens eerder dammetjies en walletjies as wat jy kanale maak. Jy probeer die water terughou en in die grond indwing, eerder as om dit weg te lei.

 

 

In digbeboude gebiede met baie plaveisel, baie teerpaaie en baie geboue mag dit selfs nodig wees om boorgate op

strategiese plekke te boor om water juis in die grond in te dwing, eerder as om dit weg te vat waar ’n mens dan fratsvloed toestande het, met ’n geweldige hoeveelheid water wat oor ’n kort tydjie wegvloei en dan is dit eintlik vir die mensdom van daaraf verlore ... en belangriker as vir die mensdom ook vir die hele ekologie.

 

 

As ’n mens dan op daardie manier na water kyk, waar jy sê hoe lank kan jy water hou en hoeveel kan jy in die grond laat ingaan eerder as om dit weg te laat loop, dan dink jy ook anders oor riviere en waterbane wat in stedelike gebiede is. In plaas daarvan om riviere en spruite te wil betonkanale maak en Kikoejoe rondom te plant met skaduwee bome wat uitheems is en baie water gebruik, probeer jy juis die natuurlike waterbane bewaar en die natuurlike oewers en die natuurlike plantegroei bewaar omdat dit, ten spyte daarvan dat dit ekologies die beste is, ook die beste rampbeskerming vir mense wat in die omgewing woon bied.

 

As ’n mens na plaveisel wat soms nodig is kyk, dan moet ’n mens juis probeer om nie aaneenlopende plaveisel te hê nie maar juis gebroke plaveisel wat water deurlaat. Dan in groter gebiede kan ’n mens ook sê dat eerder as om water bo grond in damme vas te keer waar dit verdamp, wil jy dit in die grond

indwing. Wat ons nodig het is heeltemaal ’n nuwe manier om oor water te dink. Ons wil nie soos lande met baie reënval van water ontslae raak nie. Ons wil dit juis bewaar. Baie dankie.

 

The MINISTER OF FORESTRY, FISHERIES AND ENVIRONMENT: Good

 

afternoon, hon House Chair. I would like permission to switch off my video as I am struggling with the signal at my location.

 

 

The ACTING CHAIRPERSON (Mr M G Mahlaule): Please proceed.

 

 

The MINISTER OF FORESTRY, FISHERIES AND ENVIRONMENT: Thank

you. hon House Chair, hon members, climate change is the defining crisis of our time, a challenge that will determine whether our nation continues to prosper, or falls victim to inaction and the effects of extreme weather events brought about by global warming.

 

 

Over the last few years, our continent has been subjected to prolonged periods of drought in some areas, whilst others have been ravaged by extreme weather events such as cyclones and flash flooding. Here at home, we have recently had to deal with mass flooding in the Western Cape and wildfires that have

led to the destruction of infrastructure and loss of life in the Northwest province.

 

The 2022 Report of the Intergovernmental Panel on Climate Change reiterated that global warming and the associated impacts will have far-reaching negative impacts on the African continent across various socio-economic sectors. These include agriculture and food security, water and energy security, tourism, economic growth and infrastructure development.

Closer to home, as many members have said during this debate, South Africa has always been a water-scarce country and is thus especially vulnerable to the effects of climate change.

 

Bearing in mind our vulnerabilities to the effects of climate change as a developing nation, we need to evaluate the most sustainable development pathways available to us and also consider our inherent risks as we transition to a lower carbon future. The key to this is in visiting how we will manage precious resources, such as our already scarce water resource.

 

 

The Climate Change Bill, which was recently adopted by this House, will form the legislative foundation of South Africa’s climate change adaptation and mitigation response strategies. Being cognizant of our government structure, the Bill makes

provision for the provincial and local spheres of government to conduct climate change needs and response assessments to tailor their respective responses to the specific challenges they face. What this means in practice is that a municipality in an area susceptible to drought and dependent on tourism revenue will have to develop and implement climate change response implementation plans into their existing planning instruments and policies. This would differ from the adaptation approach needed in a municipality dependent on agriculture that suffers from sporadic flash flooding.

 

 

In this vein in 2020, the department developed the National Climate Change Adaptation Strategy to provide overall guidance to all stakeholders in undertaking climate change adaptation planning. Technical support was provided to sectors to develop and implement tools to undertake climate change, risk and vulnerability assessments and design associated interventions. The following sectors have also been supported, namely, tourism, human settlements, agriculture, water, mining, health and biodiversity.

 

 

Especially important is the work the department has done with key partners to ensure the co-ordination and implementation of early warning system infrastructure and climate information

systems for communities. An example of the collaboration between the national government and municipalities has been the work that we did with the Garden Route District Municipality, following the devastating fires that occurred a few years ago in the Knysna area.

 

 

The Garden Route is an area famed for its natural beauty and dependent on tourism, but also prone to extreme weather events such as fires, storm surges and flooding. In addition to tourism, the region’s economy depends on agriculture and forestry, which are particularly vulnerable to climate change.

 

We have worked with this municipality to develop projects aimed at building climate change resilience that will be integrated into the municipality development planning. This includes building early warning fire detection and wildfire management into existing climate change adaptation programmes. These efforts will contribute to lessening the impact of wildfires, particularly the damage that they create to infrastructure and the loss of life.

 

 

The impacts of climate change on the tourism sector and its associated value chains will be potentially devastating for the Garden Route, economy, and hence collaboration with the

Department of Tourism. We have supported the development of a climate change risk and vulnerability assessment report for the Garden Route. In all, we have worked with 44 District municipalities to develop their climate response strategies. We are now reworking the response strategies of all nine provinces so that they are up to date and are mainstreamed into the planning framework. Work such as developing local climate change strategies is essential in incorporating climate change mitigation and adaptation and development plans. On a broader level, we will have to catalyse all sectors of our economy and society to adapt to climate change. And what this means is mainstreaming climate change into our sector strategies, while simultaneously meeting our broader development objective.

 

 

Typically, an example is green buildings that are energy and resource-efficient and environmentally responsible. Green buildings offer an opportunity to save energy reduce waste cut down on greenhouse gas emissions, and conserve natural resources, while at the same time improving water and air quality. Green building practices can have a significant impact on combating climate change and help to create truly sustainable communities.

There are many changes needed to mitigate the negative effects of climate change in a climate-profile economy. Apart from the National Climate Change Adaptation Strategy and the Climate Change Bill, the government has several tools and policies at its disposal. These include the Green Transport Strategy, the Low Emissions Development Strategy, the South African Renewable Energy Masterplan for new energy vehicles and the steel sector.

 

 

To implement the change necessary for South Africa to transition to a low-emission and climate-resilient economy, we will need international support and finance for such a process. Hon members will be aware of the just energy transition partnership signed in 2021 between South Africa and several international partners. International financing pledges of $11,5 billion have been made to help South Africa’s transition and meet the country’s climate change mitigation targets. Additional global pledges have been made towards The Japan Exchange and Teaching, JET, Programme within the last year and these include welcome additions from Denmark and the Netherlands.

 

 

At the end of this month, I will be attending the United Nations Framework Convention on Climate Change Conference of

the Parties known as Climate COP 28 in the United Arab Emirates. At these talks, South Africa will continue to call for reform of the global financial architecture to fund the adaptation and mitigation efforts of developing countries as well as calling for a clear adaptation work programme with clear targets for building the resilience of developing countries and clear financial mechanisms to achieve this. We look forward to the engagements with our international partners and hope that much-needed progress will be made in these two key areas.

 

 

In conclusion, let me reiterate that the government is already working on addressing our country’s fragility in the face of climate change, but much more work needs to be done and such actions can only be done through the broad support of our society and that necessary international support and finances. I thank you.

 

 

Ms N GANTSHO: House Chairperson, please allow me to switch off my video. My network is unstable. House Chairperson, the 55th ANC National Conference acknowledged the climate crisis as a central challenge for South Africa. Noting increased risks of droughts and floods across the nation. Emphasizing the importance of educating the public about climate change

effects. The ANC resolve to garner support for the climate change legislative framework.

 

The resulting Bill passed by the ANC-led government, prioritizes in protecting the poor and vulnerable communities, in implementing climate resilient infrastructure.

 

 

Education remains crucial for empowering people to comprehend and efficiently respond to climate impacts. And instilling values, particularly in the youth, is vital for embracing necessary changes to preserve the environment.

 

The ANC dismissed unfounded claims that the climate framework won’t be effectively implemented. House Chair, the Climate Change Bill proposes an integrated approach across government spheres with a focus on empowering local government, the first responders during crisis.

 

 

The ANC aligns with international initiatives like the United Nations, UN, Framework Convention on Climate Change, and the Paris Agreement, emphasizing the need for education, empowerment, and engagement on climate policies.

House Chair, early warning system actively involving communities are deemed essential. As demonstrated by recent initiatives like the cleaning and greening program. This program addresses environmental degradation, litter reduction and unemployment, offering 37,000 and 49 job opportunities nationwide.

 

 

Members establishing emergency management as a tool for climate resilient planning involves various stakeholders. It includes community and religious organization. The ANC opposes the DA suggestion to isolate this from local government, emphasizing their crucial role.

 

House Chair, adaptation to climate change includes addressing sea level rise and increased storm surges in many coastal areas. As we have recently witnessed in Western Cape, Eastern Cape, and KwaZulu-Natal.

 

 

However, this does not suggest that areas that are not located in coastal areas are immune from climate change. The extreme weather conditions demand collaborative efforts to reduce vulnerability, utilizing technology for the prediction, preparation, and prevention of natural disasters.

The global investment in adaptation falls short, necessitating private sector involvement. Climate change impacts, hinder economic development and exacerbates poverty and living costs. Investing in adaptation is cost effective for protecting communities, livelihoods, and promoting economic growth.

 

 

House Chair, the afforestation is lauded as key climate change mitigation strategy. Combating extreme weather conditions and reducing carbon in the atmosphere. It revitalizes land and it improves soil quality. It prevents erosion. And establishes wild habitats and protect communities from natural disasters.

 

In conclusion, House Chair, the ANC underscores the agency of addressing climate change through comprehensive legislation, education, and collaborative efforts across sectors.

Emphasizing the critical role of local governments and private sector investment in building climate resilience. Thank you, House Chairperson.

 

 

Ms A M M WEBER: House Chairperson, how come that it is the ANC-led government to the implementation of mitigation and adaptation strategies working towards net zero regarding climate change. It is very clear that this government is very

confused. They keep on contradicting themselves, for instance,

on one side there is a Minister signing the Paris Agreement making policies and strategies, for example, the lower emissions development strategy and on the other side, the Minister saying that he believes that our commitment to climate change and the decommissioning of coal-fired power stations is the reason for load shedding ... [Inaudible.]

 

 

One of the biggest mitigation strategies to combat the impact of climate change is by the reducing the emissions of greenhouse gases from fossil fuel power stations and increasing the share of renewable energies.

 

Policy agreement which South Africa has signed, requires that we ensure that global warming doesn’t increase by more than 1,5°C. The emissions of greenhouse gases need to be reduced by 45% by 2030.

 

 

Eskom and Sasol,

 

though applied to extend the compliance of the minimal emission standards by 2020 and that was approved, and compliance was extended for another five years, not only were Eskom granted another extension this year of being

non-compliant to the minimum emissions, but made it clear to our just energy transition partners that they will not be able

to reach the minimum emissions as expected, as the cost is too high.

 

Even after Minister Creecy raised the baseline for minimum emissions from 500 to 1000 milligrams to cubic meter, compliance has still not been reached.

 

 

Does the government even try? I don’t think so. In fact, most Eskom power stations have failed to report on the minimum emissions since February this year. Currently, Kusile power station units, one and three are emitting at full scale while bypassing the flue gas desulphurization process. No mitigation, no adaptation, no sight of net zero. A gross violation of our own laws, and yet no consequences.

 

Not the fault of climate change. So, the government is continuing to extend deadlines to compliance. The reality and truth are that climate change cannot be put on hold or be extended.

 

 

And United States, US, government have to stop paying lip service to the climate crisis and put actions into practice. You have to start executing and enforcing climate adaptation and mitigation. Otherwise, we will become one of the countries

that Saño the leader of Greenpeace in Southeast Asia referred to when he said: “Adaptation is no longer possible for some communities and countries”. We have to avoid this at all costs.

 

What is very clear is that this government does not have the ability to maintain infrastructure. It is said that World War

III will be fought over water. What is life?

 

 

The state of water infrastructure in South Africa is shocking. South Africa is a water scarce country and cannot afford to lose water due to ill maintained infrastructure. Most municipalities have failed to maintain their water infrastructure and the backlog is massive. Water losses are huge due to major leaks and no political will to fix it.

 

 

Again, climate change is not the culprit here, the small but effective solution is to train Expanded Public Works Programme, EPWP, workers as barefoot plumbers to fix water leaks.

 

Until now, the ANC-led government have not built one single new dam in the country to address the serious water storage need. No vision, no planning.

It is concerning to see how many municipalities raw sewages run freely into our river, dams, and oceans. Sewage causes waterborne diseases, not climate change. This is a total destruction of our water resources. Sewage is filled with nutrients that allow invasive and alien plants to take over our waterways. Again, not climate.

 

 

[Inaudible] ... mine drainage and chemical spills into our water, happens regularly. These pills do not only kill our biodiversity but destroy our waterways. One example is the acid mine drain that spilled into the Volgen Klein Olifant River in Mpumalanga, where over three tons of fish died. The big chemical spill from United Phosphorus Ltd, UPL, where more than 3000 tons of fish and crustacean have died, both are due to negligence and not to buying the law, not climate change.

Again, I asked the question where is the execution and enforcement of our laws?

 

 

Another mitigation strategy is to increase the source of our forest. The grading program is a great initiative.

Unfortunately, our needs series only use a mere 37% of the land available to them. The infrastructure in forestry is totally dilapidated and there is a shortage of water. What is being done by the government to stop deforestation? Climate

change is not to blame. If it is on paper, it doesn’t mean the work has been done. The law must be enforced.

 

Natural disasters appear all over the world, but in South Africa we do not have to be afraid of natural disasters. As the biggest threat to our climate and water in this country is the disasters caused by the ANC-government, not climate change.

 

 

The disasters we face in this country are created by the lack of enforcement and compliance of this government. We do not need more research, we need compliance. The solution to climate change is not just the Bill on paper, but the execution and enforcement of our laws. Saving our water and adherence to the treaties we signed. Thank you, House Chairperson.

 

Mr B S YABO: Hon Chair, studies show that South Africa’s aquifers hold approximately 235 billion cubic metres of groundwater. However, only 19 billion cubic metres of this volume is renewable and able to be abstracted.

 

 

To put this into context, the total capacity of our dams is

 

32 billion cubic metres. What this says to us is that

innovative ideas and technological advancements are a necessity moving forward to ensure greater water security.

 

Another fact worth noting is that arguably the biggest aquifer runs under and through the Western Cape, and yet the residents in townships and the Cape Flats experience water shedding regularly, but as always, the DA would rather score cheap political points in a scientific debate. Again, exposing that their bereft of superior intellect to rise above petty politics.

 

 

In the City of Tshwane sewer runs along kilometres of pavement with not budget allocated to address the challenge. And yet here we are, hon Weber, speaking very good points that the sewer is the foremost contributor to water contamination, and yet in the City of Tshwane where they are governing, sewer is the daily bread of the poor and the marginalised.

 

 

Here we are again being subjected to a daydreaming session by hon Bryant about how Cape Town and Western Cape are doing well, and yet they are not advancing in accessing advanced water resources under their feet.

Addressing the challenges of climate change must never be subjected to party political campaigns, but dealt with through a collective effort by all stakeholders.

 

It is critical that we always remember that climate change- related concern such as stressed water security and social infrastructure are man-made risks, they are a product of our poor collective actions which threaten not only the existence by also the availability of natural resources and sustainability of our biodiversity.

 

 

Developed countries are responsible the eroding of the global climate as they make in-greenhouse gas meters, but because we are all at the receiving end of natural disasters as a result of climate change, we should all act in consort towards its resolution.

 

 

While the ANC government is taking care to gradually implement the just transition, while taking the economy of the country into consideration ... [Inaudible.] ... are being told today that the ANC is not serious about implementing the just transition and ensuring that more renewable sources of energy are implemented by our government. And this is not true. What we are saying is that we will adapt the just transition to the

pace studies allowable to our own situation in the country, and yes, as signatories to the various compacts. We are serious about implementing those compacts.

 

But we still say that we should not be overburdened by developing countries’ masses as developing ourselves, while we are busy moving towards the augment of the just transition.

 

 

The risk associated with climate change warrants a swift and robust response with the appropriate skills and resources allocated to interventions to ensure effective responses.

South Africa’s response to climate change is imperative as the country’s economic development is in extricable tide to its natural resources, which include agriculture, mining and tourism.

 

 

It is also common knowledge that the development of civilization has always followed adequate water sources.

 

Furthermore, Chair, climate change has negative socioeconomic effects which magnifies the country’s heighten triple challenges of poverty, unemployment and inequality.

The risk of not responding to climate change also poses extensive health risk which may further burden our constrained healthcare system.

 

Health is one of the fundamental cornerstones of any nation and its jeopardy threatens the prosperity and stability of the country.

 

 

As floods are predicted to become more frequent and severe, as climate change worsens, posing an immediate threat to people’s lives and homes, it’s imperative that we address human settlements in floodplains. This is because despite be in, by definition, high-risk zones for floods, floodplains are frequently well-inhabited, large groups of people living in these areas despite the risks for multiple reasons including poverty. These people and their informal settlements, therefore, become especially vulnerable to the destructive impacts of floods because they frequently lack proper draining systems, another critical infrastructure to withstand the impact of natural disasters.

 

 

Chair, additionally, there are major economic ramifications when people settle near flood zones as flooding may result in

significant damage to infrastructure and property, which raises the cost of recovery and reconstruction.

 

The cost of reacting to and recovering from floods strains our government as we are already grappling with high levels of unemployment and inflation.

 

 

Therefore, as we conclude this debate I urge each and every one of us from all corners and sectors of society to share in utata Nelson Mandela’s vision and to translate the sentiments he expressed in our daily lives:

 

Dream of our vast desert, of our forest, of all our great wildernesses and never forget that it is our duty to protect this environment.

 

 

Ke a leboga, Chairperson. Thank you very much.

 

 

 

Debate concluded.

 

 

 

The mini-plenary session rose at 15:53.

 

 

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