Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 23 Jun 2015


No summary available.




The Council met at 14:02.

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







The CHAIRPERSON OF THE NCOP: Hon members, before we proceed with the business of the day, I would like to take this opportunity to welcome a new member, the hon Z V Ncitha, who has just been sworn in today. [Interjections.]

Order, members! I have had the opportunity and the missed opportunity to also welcome another member from the EFF - remember - who was not in the House. I am just being consistent. I am welcoming that member. She is around. She was sworn in today.


Mr G MICHALAKIS: Hon Chairperson, I give notice that on the next sitting day of the Council I shall move on behalf of the DA:

That the Council—


(1) debates South Africa’s disregard of a warrant of arrest issued by the International Criminal Court against President Omar al-Bashir of Sudan;

(2) further notes that in doing so, South Africa has violated its commitments as a signatory to the Rome Statute and further ignored the implementation of the Rome Statute of the International Criminal Court Act 27 of 2002;

(3) also notes that by its failure to honour its international commitments, the ANC-led government not only proved that it cannot be trusted by our friends in the international community, it has also contributed to damaging our nation’s credibility in all international affairs and our reputation, won in 1994, of a nation fully committed to basic human rights; and

(4) finally notes that the only way to restore our nation’s credibility is to recommit to protecting international human
rights, and respecting the rule of law and the jurisdiction of the International Criminal Court, of which we are members, and rebuilding trust with the South African people.

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

That the Council—


(1) notes that the DA is concerned about the potential outcome of the wage negotiations currently taking place between South African gold producers and the four major unions representing nearly 94 000 miners;

(2) further notes that the wage negotiations come at a time where the sustainability of the gold sector is under threat; and

(3) also notes that the DA will follow the negotiations attentively to ensure that the agreements reached are mutually beneficial to both workers and the industry so that the livelihoods of miners will not only be sustained but that the economy and job opportunities for all South Africans continue to grow.

(Draft Resolution)


The CHIEF WHIP OF THE NCOP: Chairperson, I move without notice:

That the Council—


(1) notes with sadness the passing away of Mrs Nontuthuzelo Deborah Rayi, mother of the hon Rayi, on Monday, 15 June, after a long illness;

(2) further notes that Mrs Rayi was a factory worker in a pineapple company, and leaves behind two children, seven grandchildren, and five great-grandchildren;

(3) also notes that the funeral will take place on Friday,
26 June, at the Assemblies of God Church in Highway,

Mdantsane; and

(4) wishes to send its heartfelt condolences to the hon Rayi and the rest of the family in this difficult time of bereavement.

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

(Draft Resolution)


Ms T WANA: Chairperson, I move without notice:

That the Council—


(1) notes with sadness a tragic accident that claimed the lives of three old people on Monday, 8 June 2015, at Flagstaff in the Qhopozo area;

(2) further notes that one of the elderly people whose life was taken by that accident is the hon Mququ’s aunt;

(3) also notes that the other two were badly injured and are still in the intensive care unit, ICU, at Nelson Mandela hospital, and that the hon Mququ’s aunt was laid to rest on
20 June; and

(4) conveys its prayers and condolences to the bereaved families and good wishes to the hon Mququ and the family.

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

(Draft Resolution)


Mr E R MAKUE: Chairperson, I move without notice on behalf of the ANC:

That the Council—


(1) notes with concern that two stowaways managed to board a British Airways Boeing 747 flying from Johannesburg to London’s Heathrow Airport on Wednesday, 17 June;

(2) also notes that one of the stowaways managed to survive the flight from Johannesburg to London by clinging to the undercarriage of the aircraft, but the other died when he reportedly fell from the undercarriage when the plane prepared for landing over the city of London;

(3) further notes that the two stowaways have not yet been identified and the survivor is in a West London hospital in a serious condition; and

(4) calls on the Airports Company of South Africa, Acsa, together with the SA Police Service, to investigate the matter and establish the facts relating to the incident, and further intensify security at all South African airports to prevent not only such acts but also unauthorised access.
Motion accordingly agreed to in accordance with section 65 of the Constitution.



(Draft Resolution)


The HOUSE CHAIRPERSON (Mr A J Nyambi): Chairperson, I move without notice:

That the Council—

(1) notes and celebrates the triumph of solidarity that came from all progressive humanity- and freedom-loving people worldwide;

(2) pays homage to the Cuban patriots as a true representation of revolutionary sacrifice and selflessness;

(3) further notes that in a society such as ours, we have learnt through the example of Cuba that no man is an island and it is in the interests of the oppressed everywhere to build solidarity as an indispensable ingredient of the recipe of struggle and liberation;
(4) also notes that the Cuban Five, together with their people, played a pivotal role in the battles for liberation in Africa;

(5) also notes that today, South Africa and Cuba still enjoy good relations, where our people learn and acquire different expertise from the latter, and many Cuban professionals, including doctors and engineers, come and pay their services in South Africa; and

(6) commends the Cubans for their unwavering support of and selflessness to South Africa and Africa, at large.

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



(Draft Resolution)


Mr W F FABER: Chairperson, I move without notice:

That the Council—


(1) notes that on 1 April 2015, Eskom had a price increase of 12,69%;
(2) further notes that if the National Energy Regulator of South Africa, Nersa, grants Eskom the extra 12,69% on 1 August 2015 for the next eight months of the financial year, it effectively becomes a 18,92% increase;

(3) also notes that the increase from 1 August 2015 to 31 March 2016 will be the 12,69% and the 18,92%, which comes to a total of 31,61%;

(4) also notes that the extra diesel costs of R11 billion to keep South Africa from total darkness should be seen in perspective on the savings of R11,4 billion of the past two years on coal while these coal power plants were being serviced;

(5) further notes that Eskom has not considered the affordability to the economy and to its electricity customers;

(6) also notes that the consumers are now paying for the mistakes Eskom has made by not maintaining power stations as it should; and

(7) asks Nersa to carefully reconsider this application by Eskom and not to bring our economy and consumers to their knees.
The CHAIRPERSON OF THE NCOP: In light of the objection, the motion may not be proceeded with. The motion without notice now becomes a notice of motion on the Order Paper.



(Draft Resolution)

Ms L C DLAMINI: Chairperson, I move without notice on behalf of the ANC:

That the Council—


(1) notes that 87-year-old ANC stalwart Mrs Jaunitah Houston, from Grassy Park, passed away on 15 June after contracting flu, and was buried on Saturday, 20 June;

(2) further notes that Mrs Houston co-ordinated and participated in the protest action against the tricameral parliamentary system introduced by the apartheid government in the early eighties;

(3) also notes that Mrs Houston, who leaves behind her husband and four children, was a fierce campaigner for human rights; and
(4) sends its heartfelt condolences to the family and wishes them strength in this difficult time.

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



(Draft Resolution)


Mr D L XIMBI: Chairperson, I move without notice:

That the Council—


(1) notes that a spate of burglaries at Joe Slovo High School in Khayelitsha has left its principal fuming and directing his anger at the Western Cape Education Department;

(2) further notes that Mr Majiet Parker says that the department is not fixing the school and, instead, comes to observe and take pictures;

(3) also notes that the school governing body secretary, Mr Vusumzi Mahobe, also expressed anger at the department for making no attempts to secure the school; and
(4) calls on the Western Cape Education Department to tighten security around the school as it is only one of two schools that offer engineering subjects in Khayelitsha.

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



(Draft Resolution)

Ms E PRINS: Chairperson, I move without notice:


That the Council—

(1) notes that a DA councillor in the City of Cape Town, Mr Willie Jaftha, wrote an official letter to the High Court seeking clemency for a convicted murderer;

(2) further notes that Mr Riyaaz Dennis, for whom Cllr Jaftha sought clemency, was convicted on 13 charges including murder, incitement to murder, illegal possession of firearms, and racketeering;
(3) also notes that Judge Fortuin found it absolutely shocking that an elected representative could offer a good word for a person guilty of serious crimes that included murder; and

(4) condemns the actions of Cllr Jaftha and calls on the DA to show their support for the victims of gangsterism by dismissing this councillor immediately.

The CHAIRPERSON OF THE NCOP: In light of the objection, the motion may not be proceeded with. The motion without notice now becomes a notice of motion on the Order Paper.


(Draft Resolution)


The CHIEF WHIP OF THE NCOP: Chairperson, I move the draft resolution printed in my name on the Order Paper, as follows:

That Rule 239(1), which provides inter alia that the consideration of a Bill may not commence before at least three working days have lapsed since the committee’s report was tabled, be suspended for the purposes of consideration of the Criminal Law (Sexual Offences and Related Matters) Amendment Act Amendment Bill [B 18B – 2014].
Question put: That the motion be agreed to.


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

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


(Consideration of Bill and of Report thereon)


Mr D L XIMBI: Chairperson, I am here to present the report of the Select Committee on Security and Justice on the Criminal Law (Sexual Offences and Related Matters) Amendment Act Amendment Bill, dated
18 June 2015.

The amending Bill aims to give effect to the two separate judgments of the Constitutional Court, namely the Teddy Bear Clinic for Abused Children and Another v Minister of Justice and Constitutional Development and Another, 2013 ZACC 35, which is the Teddy Bear case, and J v National Director of Public Prosecutions and Another, 2014 ZACC 13, which is the J case.
The court found that the criminalisation of consensual sexual acts between two adolescents is unconstitutional. The term “child”, for the purposes of sections 15 and 16, is defined as “a person 12 years or older but under the age of 16 years”. The proposed amendment of sections 15 and 16 aims to introduce a close-in-age gap in respect of 16-year-old and 17-year-old children, where they engage in consensual sexual acts with adolescent children. The provision for the prosecution of both children for the crime of consensual sexual penetration of a child between the age of 12 and 16 was deleted.

The amending Bill further aims to amend section 50(2)(a) through the introduction of a proposed new paragraph (c) in terms of which a court will have the discretion to determine whether the particulars of a person who was younger than 18 years at the time of committing a sexual offence should be included in the National Register for Sex Offenders, or not.

Therefore, the recommendation of the Select Committee on Security and Justice, having considered the subject of the Criminal Law (Sexual Offences and Related Matters) Amendment Act Amendment Bill referred to it, reports that it has agreed to the Bill without proposed amendments. Thank you, Chairperson.

Debate concluded.


Question put: That the Bill be agreed to.
Declarations of vote:
Mr G MICHALAKIS: Chairperson, this Bill seeks to amend the current legal position to ensure that children of certain ages are not held criminally liable for engaging in consensual sexual acts with each other, to give presiding officers a discretion in deciding whether the particulars of children should be included in the National Register for Sex Offenders on an individual basis, as well as the procedure for children in applying to have their names removed from this register where the terms of this Bill apply.

The Bill has been met with some controversy and concerns, especially from religious groups. However, there is wide consensus that, regardless of any moral objections thereto, it is unjust that consensual sex between minors should be criminalised, thereby jeopardising minors’ futures and prospects of future success through punitive legislation for having consensual sex. The key term here is “consensual sex”, and a provision is included indicating that the sexual consent, as envisaged in the Bill, is only applicable to minors between the ages of 12 and 16; alternatively, where one of the minors is 16 or 17 years of age, the age difference does not exceed two years.

This Bill seeks to give effect to two Constitutional Court cases, namely the Teddy Bear case and the J case, where it is also important that such fundamental Constitutional Court decisions should find effect in our national legislation. It should be stated
clearly that sex without mutual consent and sex between minors which fall outside the scope of this Bill still remain a criminal offence. The DA supports the Bill.

The CHAIRPERSON OF THE NCOP: The hon Mtileni. [Interjections.] You have three minutes, sir.

Mr V E MTILENI: Chairperson, one minute has already gone.


The CHAIRPERSON OF THE NCOP: You have three minutes, sir.

Mr V E MTILENI: Alright. Thank you, Chairperson. The ANC has been in power for the past 21 years, but it is still unable to develop Bills and legislation that are constitutional and of an acceptable quality.

This Bill is one of the many that has been sent back to this House because it is unconstitutional. The EFF is of the strong belief that children need to be supported by their parents, caregivers, and the adults in their lives, people who should enable healthy choices about relationships and the correct timing of engaging in sexual activities. Criminalising adolescents for engaging in developmentally normal behaviour is an extreme measure that prevents them from approaching their parents, educators, social workers, nurses, and other support people for guidance, information,
contraception, and the treatment of sexually transmitted infections and HIV/Aids.

For that reason, we support this amending Bill. Sexual activity among young people is a matter of moral righteousness, and we believe that we cannot legislate righteousness. You need strong family units to do so. To develop our children into strong young adults who take responsibility for their sex lives requires comprehensive sex education programmes which have been shown to contribute to delaying sexual initiation and reducing the likelihood of teen pregnancy.

Providing conditions that are conducive for proper rearing, our children require consistent parental supervision. The reality in South Africa is that a sizeable number of black parents spend most of their time rearing the children of their white madams, leaving very little time to supervise and educate their own children. The social conditions that young black people grow up in are therefore a direct result of the limited economic opportunities for black people, leading to parents leaving their own children unsupervised in order to go and serve their bosses.

The government should open up economic opportunities in areas where our people live, giving parents and children opportunities to educate each other about sex and the risks involved therein. Thank you.
Mr L P M NZIMANDE: Chairperson, the ANC supports the Bill, informed by its own commitments to social cohesion and family values. The ANC does not view the court order as ordering the change of the moral fibre of our society to allow young children of that age to engage in consensual sex. We believe that, in building a nation, you need responsible people. Therefore, the ANC urges communities to take care of their children for the future of our own country.

We support the Bill, not because the original Bill, as it is, had any errors in itself, but because it was amended for the purpose that we highlighted and which was highlighted by the statement read by the chairperson of the committee.

The ANC says that our commitment is to create conducive conditions for a poor child in poor conditions and poor circumstances. These conditions must be turned around as we transform and build the infrastructure that allows for a better life for all, that allows for a quality life and sustainable livelihoods in the vicinity and the environment that the poor people live in, so as to change around their lives and the lives of their children. The conditions of workers should be improved so that they can be with their children in good time and offer them good guidance and decent education, decent livelihoods, and an environment that allows them to play and grow as children and not conduct themselves in a way that is unacceptable in a good and conducive society. I thank you.
Ms E C VAN LINGEN: Hon Chair, I am usually very clued up with the electronics, but mine says “In favour: four,” and I have voted, and I am sure that four is not the total sum of the votes. I am not sure whether it counted my vote as four.

The CHAIRPERSON OF THE NCOP: “In favour” is “yes”. That means that you will be counted as “yes”. The hon Mtileni?

Mr V E MTILENI: My system is also giving me problems. I think I am thinking in favour, as you heard. The system is not working.

The CHAIRPERSON OF THE NCOP: Hon Tlake and Makue?


Ms M F TLAKE: Chairperson, my thing is not working.

The CHAIRPERSON OF THE NCOP: Your thing! [Interjections.] Are you for or against?

Ms M F TLAKE: I am in favour.


The CHAIRPERSON OF THE NCOP: Hon Makue, do you have the same problem? The hon Mtileni and hon Tlake’s systems were not helping them, but both of them say they voted in favour. Have all the members voted, including the three members who had queries? Voting is now closed.
Bill agreed to in accordance with section 75 of the Constitution.


Mr M J MOHAPI: Hon Chair, Chief Whip, Minister, Deputy Ministers, Members of Parliament present here today, ladies and gentlemen in the gallery, on 5 February 2014, during a special meeting of the North West Provincial Executive Council, a resolution was taken to invoke the provision of section 139(1)(b) of the Constitution in the Madibeng Local Municipality. The intervention was effective from
5 February 2014 for a minimum period of six months and a maximum period of 12 months.

The motivation for the intervention was based on the following: Firstly, evident signs of poor administration and governance, which affected the financial status of the municipality and service delivery, resulting in the unfortunate death of four members of the community during a service delivery protest; secondly, failure by the council to implement the recommendations of the ministerial task team appointed by the former Minister of Co-operative Governance and Traditional Affairs, which included taking disciplinary action against councillors and officials implicated in a number of administrative and financial irregularities; and thirdly, the
current executive mayor, Speaker and Council Whip, who had replaced the previous office bearers in January 2014, had failed to make an undertaking to implement the recommendations of the ministerial task team.

The view of the Minister of Co-operative Governance and Traditional Affairs was that the challenges in the Madibeng Local Municipality could be addressed by providing support to the municipality in terms of section 154(1) of the Constitution. To that end, the Department of Co-operative Governance and Traditional Affairs had already begun providing the municipality with a ministerial support team. The intervention was then disapproved.

In its deliberation, the select committee resolved to end the intervention based on the following substantive reasons: Firstly, while acknowledging that there were evident signs of poor administration and governance, which affected the financial status of the municipality as well as service delivery, these challenges could still be addressed by providing support to the municipality, in terms of section 154(1) of the Constitution, instead of invoking section 139(1)(b) of the Constitution.

Secondly, the municipality had started to implement the ministerial task team report, starting with the institution of disciplinary proceedings against the municipal manager, chief operating officer
and the acting corporate service manager and these officials had already been placed on precautionary suspension.

Thirdly, the municipality had developed a plan with the Department of Water and Rand Water to address the water crisis in Madibeng.

The NCOP took note of the report by the ministerial task team and made its own determination, based on the provisions of section 139(2)(b)(i) of the Constitution.

Regarding the current intervention, in its meeting on 18 March 2015, the North West Provincial Executive Council resolved to invoke section 139(1)(b) of the Constitution due to water and sanitation services in Madibeng Local Municipality.

The North West province is one of the hardest hit provinces when it comes to water supply services, a situation which hampers the ability of municipalities to provide effective sanitation services to communities. By virtue of its geographic distribution, it is located in relatively dry climatic conditions with a low to medium average annual rainfall. Most of its municipalities have to contend with the greatest water challenge and need. Over a considerable period, Madibeng Local Municipality has thus been experiencing chronic water supply and sanitation problems, resulting in widespread community service delivery protests.
The reasons for placing the municipality under section 139(1)(b) administration include the following: Firstly, poor water and sanitation services provision, which often resulted in water supply disruptions; secondly, poor water quality; thirdly, poor maintenance and operations of water and sanitation infrastructure; fourthly, uneven provision of services to communities; and fifthly, project delays due to prolonged procurement processes and possible fraud and corruption.

The MEC responsible for Local Government and Human Settlements reports that the Minister of Water Affairs and Sanitation was engaged in seeking to maximise functional co-ordination and intergovernmental support. As a consequence, the department will now, during the period of intervention, deploy technical expertise and capacity for the smooth implementation of the water supply and sanitation turnaround delivery. The intervention is meant for a minimum period of six months and a maximum period of 12 months.

The intervention will focus mainly on the effective delivery of water and sanitation services, as follows: Firstly, planning and prioritisation of infrastructure programmes and projects on water and sanitation and other services in line with the integrated development plan, IDP; secondly, allocation of the budget of Water and Sanitation programmes and projects; thirdly, overseeing the procurement of goods and services in relation to water and sanitation services; fourthly, management of the project management unit; and lastly, monitoring and overseeing the water and sanitation project and programmes.

In its oversight visit to the municipality on 21 April 2015, the select committee observed that the municipality had reported high levels of debtors per services related to water, electricity, property rates, sanitation, and refuse removal. The major debtors owing the municipality per customer group categorisation included government, business, and households.

During the same oversight visit, the select committee made a site visit to the Brits Water Treatment Plant. In terms of current capacity, the plant supplies 60 ML of water per day, whereas the demand is 80 ML. However, a contractor was on site in expanding the capacity of the plant to 80 ML by 2018. Ageing infrastructure was cited as the major reason for the municipality struggling to meet its water demands. The ageing infrastructure did not only affect the provision of water, but also the quality of water. The infrastructure has exceeded its lifespan and is also too costly to maintain, especially with the municipality experiencing financial difficulty.

The upgrading of the Brits Water Treatment Plant will not only improve the capacity of water provision, but also the quality thereof. As part of the project, the ozone purification system, which could see the municipality receiving Blue Drop status, will be installed. The ozone purification system is a system used to kill bacteria found in water and is used by many municipalities throughout the world. Although progress has been made by the municipality in respect of water and sanitation, it is still experiencing challenges related to the nonpayment of the bulk account as a result of current cash flow pressures.

Considering that Resolution 64/292 of the UN General Assembly explicitly recognises the human right to water and sanitation and also acknowledging that clean drinking water and sanitation are essential to the realisation of all human rights, the select committee therefore recommends as follows: Firstly, that the NCOP approves the intervention in terms of section 139(1)(b) of the Constitution in Madibeng Local Municipality; secondly, that the North West MEC for Local Government and Human Settlements should table quarterly progress reports to the NCOP and the provincial legislature on the status of the intervention in the municipality, including the challenges encountered; and thirdly, that the North West MEC for Local Government and Human Settlements should table the termination report of this intervention, including the section 154 support provided to the municipality. These reports should be submitted to the NCOP and the North West Provincial Legislature.

In conclusion, representatives from organised labour, political parties, and women and youth formations in Madibeng Local Municipality are unanimous in welcoming the invocation of section 139(1)(b) of the Constitution by the North West Provincial Executive Council. One other critical concern that the select committee wanted the municipality to address was the need to ensure that there were adequate public participation processes and platforms to ensure that people’s wishes are represented in decisions and policies that the municipality takes.

On progress thus far, the municipality has already completed construction of the new reservoir and bulk pipeline in Hebron, or Kgabalatsane, for direct supply to consumers. With regard to the money owed to Eskom, the municipality has already made arrangements to repay the national power supplier, including plans to repay other creditors. The importance of improving revenue collection would also improve their budget allocation and that will help the municipality to provide more services than it currently does. The municipality is currently owed in excess of R1 billion by customers, ranging from households to government and business. An improved collection rate could increase the percentage base, which will be used to allocate their own revenue. I thank you. [Applause.]

Debate concluded.

Question put: That the Report be adopted.


IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.


Mr M J MOHAPI: Hon Chair, allow me to present, on behalf of the Select Committee on Co-operative Governance and Traditional Affairs, the report that was tabled on 17 June 2015. There have been several interventions involving the Ngaka Modiri Molema District Municipality since 2009, including the dissolution of the council, recently, in September 2014, in terms of section 139(1)(c) of the Constitution.

The main issues identified by the provincial executive to dissolve the then municipal council of Ngaka Modiri Molema related to the following: failure by the political leadership of the municipality to provide leadership and exercise oversight and not take ownership or acting on the irregularities in the administration of the municipality; failure by the municipality to provide quality service to the residents of Ngaka Modiri Molema in line with their powers and functions; failure to implement programmes and projects relating to infrastructure programmes for water and sanitation services; poor administration of service delivery-related programmes; poor infrastructure spending; poor monitoring of projects and programmes; poor integration and co-ordination of infrastructure and other programmes with the local municipalities as the water service authority in terms of the Intergovernmental Relations Framework Act of 2005; failure by the municipal council to act on the alleged maladministration, fraud, and corruption; failure by the district municipality to provide support for the local municipalities in terms of section 80(a) of the Local Government: Municipal Structures Act of 1998; failure by the district municipality to comply with applicable legislation and regulation governing the local sphere of government, that is the Local Government: Municipal Systems Amendment Act of 2011, the Local Government: Municipal Structures Act and the Local Government: Municipal Finance Management Act.

The Constitutional Court handed down a court judgment on 18 November 2014 in the case involving the decision of the North West provincial executive council to dissolve the Ngaka Modiri Molema District Municipality and to appoint Mr R G Nair as administrator of the municipality. The municipality applied to the North West High Court in Mahikeng to review and set aside the decision to dissolve it. The municipality also sought a temporary interdict to prevent the administrator from interfering in the municipality’s affairs and for the suspension of the decisions to dissolve it, pending finalisation of the review application.
Relying on this court’s decision in National Treasury and Others v Opposition to Urban Trolling Alliance and Others [2012] ZACC 18, the High Court dismissed the temporary interdict application. It found that the municipality, as distinct from individual municipal councillors, suffered no harm, let alone irreparable harm. The municipality appealed directly to the Constitutional Court against the decision of the High Court not to grant the temporary interdict application and for direct access for the review application.

In its judgment, the court dismissed the application for leave to appeal. It emphasised that the urgency lies in ensuring the immediate provision of basic sanitation, water, and other services to the affected communities, and not in restoring the status of municipal councillors to the positions from which they complain they have been unjustly removed.

The effect of the dismissal of the application for leave to appeal against the refusal of the temporary interdict application by the Constitutional Court was that the lawfulness of the administrator’s intervention in restoring services in the Ngaka Modiri Molema District Municipality was beyond question. The Provincial Executive Council of North West resolved, in its meeting on 18 March 2015, to invoke provisions of section 139(1)(b) of the Constitution in the Ngaka Modiri Molema District Municipality on both water and sanitation.
Given the serious service delivery challenges in that district, it then resolved to rescind the resolution of 18 March 2015 and invoked section 139(1)(b) in the district municipality on all executive obligations of the council, except for the passing of the IDP, budget, policies, and by-laws. This, then, automatically includes the function of water and sanitation and all other executive obligations of the district council.

This decision was taken in the provincial executive council meeting of 29 April 2015. The intervention was effective from 1 May 2015 for a minimum period of six months to a maximum period of 12 months. The intervention in the district municipality is as a result of the municipality’s inability to deliver water and sanitation services to its residents in the areas of the Ramotshere Moiloa, Mahikeng, Tswaing, and Ditsobotla Local Municipalities.

This inability sparked violent service delivery protests, forcing the provincial government to take matters into its own hands to quell these challenges. The implication of invoking section 139(1)(b) is that the provincial government, in partnership with the Department of Water and Sanitation, assumed control and responsibility of providing water services to the community of the Ngaka Modiri Molema district.

The problems facing the Ngaka Modiri Molema District Municipality could be a thing of the past if the municipal council, organised
labour, traditional leaders, the administration, and political parties could all work together, instead of working against each other. Considering the challenges in the Ngaka Modiri Molema District Municipality the select committee recommended the following to the NCOP, on 17 June.

Firstly, that the NCOP approves the intervention in the Ngaka Modiri Molema District Municipality in terms of section 139(1)(b); secondly, that the North West Department of Local Government and Human Settlements, jointly through the SA Local Government Association, Salga, should assist in fast-tracking the processes of filling critical vacant positions in the Ngaka Modiri Molema District Municipality; thirdly, that the Department of Local Government and Human Settlements in the North West should do a follow-up inquiry on the nonpayment of stipends to traditional leaders in the district, as the payment of stipends to traditional leaders will assist them in effectively playing their developmental roles in their communities; fourthly, the North West MEC for Local Government and Human Settlements should table quarterly progress reports to the NCOP and provincial legislature on the status of intervention in the district municipality, including the challenges encountered; and lastly, the North West MEC of Local Government and Human Settlements should, after the expiry period of the intervention, immediately table the termination report of the intervention to the NCOP and the North West Provincial Legislature.
In conclusion, the Ngaka Modiri Molema District Municipality has been experiencing governance and administrative challenges since the current term of local government commenced in 2011, and it has therefore derailed service delivery to its constituent local municipalities. The situation could remain the same and service delivery to our people should therefore be accelerated. I thank you, hon Chair.

Debate concluded.


Question put: That the Report be adopted.

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

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


Mr M J MOHAPI: Chairperson, allow me, once again, to present before the National Council of Provinces the report, as tabled before the
select committee on 17 June 2015. This is the report on the Matlosana Local Municipality.

On 19 March 2013, the North West Provincial Executive Council resolved to intervene in the affairs of the Matlosana Local Municipality, in terms of section 139(1)(b) of the Constitution. This intervention was intended to last for a minimum period of six months, with effect from 1 April 2013. The intervention was as a result of financial problems, which had resulted in notices from Eskom and the Midvaal Water Company to discontinue Vaal service provision due to nonpayment.

The municipality’s financial status was deteriorating and this warranted an intervention from the provincial government in order to continue delivering services to the communities. The department conducted a brief analysis of the financial status of the municipality and the outcome of the analysis revealed the following.

The municipality was not collecting what was due for services rendered to consumers, and the debtors’ book stood at about
R960 million. There was no enforcement of debt collection and credit control policy, as adopted by council. The municipality was using the revenue for the sale of electricity to subsidise other services that consumers were not paying for. The municipality has numerous contractual obligations with consultants for services such as debt collection, meter reading, and other services that could be done
internally; and there was a lack of management and leadership capacity in the Budget and Treasury Office, resulting in poor financial management and administration of the municipality’s finances.

Since the intervention team had never been to the municipality, and five months had passed since the intervention began, and no progress had been registered in the municipality, the NCOP by then disapproved the intervention in the Matlosana Local Municipality.

In terms of the current intervention, the North West Provincial Executive Council resolved, in December 2014, to invoke section 139(1)(b) of the Constitution in the Matlosana Local Municipality, with effect from 1 January 2015. The intervention has been a consequence of the intervention invoked in the municipality in 2013 for a period of 12 months.

The status of the municipality was such that the intervention of the financial management had not yielded much result in improving the cash flow, debt collection, internal control, and revenue management. The financial position of the municipality was continuing to deteriorate as the creditors, both Eskom and Midvaal, were increasing and standing at just over R200 million and R50 million, respectively.

The debtors’ book stood at R1,1 billion, whilst supply chain management and poor internal control challenges are plunging the municipality into more problems. There is a reported poor administrative leadership on the part of senior managers, whilst the council is unable to exercise oversight over its administrative arm. Equally, the recent forensic audit initiated by the administrator has revealed numerous supply chain management irregularities which continue to be overlooked by both the accounting officer and the council.

Besides taking over the executive powers of the council, the administrator, duly appointed with effect from 1 January, is tasked to assume the responsibility and accountability of the entire administration of the Matlosana Local Municipality, in compliance with section 155 of the Local Government: Municipal Systems Act, Act 32 of 2000. He is currently being supported by a team of experts as part of the measures to ensure realisation of the desired outcome.

In particular, he is tasked to discharge the following objectives: managing, stabilising, and improving governance and administration within the municipality; improving service delivery in the municipality by prioritising water, road, sanitation, and electricity services by including facilitation of new projects; unblocking of all projects and maintenance of infrastructure; improving the financial controls in the municipality, such as expenditure management, procurement processes, revenue enhancement, and debt collection, as well as addressing the Auditor-General’s report; analysing the past and current investigations, commission of inquiry, forensic audits, and implementation of recommendations; attending to labour matters in the municipality on outstanding disciplinary cases, labour disputes, functionality of the Local Labour Forum, and instilling a culture of work and discipline amongst the workers; facilitating the improvement of governance within council on matters related to council’s oversight role and the relationship between the council and the administration; and investigating all recently awarded contracts to establish the validity and legitimacy thereof, and to terminate illegitimate ones.

The municipality has been experiencing challenges relating to the absence of proper financial administrative systems, including having no debt recovery plan in place. The municipality also has a high vacancy rate in management positions. This poses challenges as there is continued lack of accountability, leading to high levels of noncompliance.

Although the municipality moved from a disclaimer audit opinion in terms of the 2012-13 audit findings to a qualified audit opinion in 2013-14, the municipality still battled with debt collection, revenue enhancement, and creditor repayment. The municipality was owed R1,1 billion and supply chain management problems and poor internal controls still persisted. The municipality was also in debt to Eskom and the Midvaal Water Company.
The previous intervention should have addressed most of the municipality’s financial challenges, but the problems continued. However, there has been some progress since the appointment of the administrator, especially in the reduction of overtime. Overtime claims have reduced from R3 million, in January, to just over R1,6 million, in February this year.

The committee is of the opinion that this intervention by government should be viewed in the light of government’s unwavering support to our municipalities to ensure that at the coalface of service delivery, they continue to deliver quality services to our communities, and as such, service delivery will not be interrupted.

The recommendations of the select committee stand as follows. The NCOP approves the intervention in the Matlosana Local Municipality in terms of section 139(1)(b) of the Constitution. The North West Department of Local Government and Human Settlements, jointly with the SA Local Government Association, should assist in fast-tracking the process of filling critical vacant positions in the Matlosana Local Municipality.

Furthermore, the forensic investigation being conducted within the municipality should be fast-tracked, and its investigations to be reported back to the North West MEC for Local Government and Human Settlements and MEC for Finance. The North West MEC for Local Government and Human Settlements should table the forensic
investigation report and the intervention exit report to the NCOP and the North West Provincial Legislature. Lastly, the North West MEC for Local Government and Human Settlements should table quarterly progress reports to the NCOP and the provincial legislature on the status of the intervention in the local municipality, including the challenges encountered.

I thank you, hon Chair. [Applause.]


Debate concluded.

Question put: That the Report be adopted.


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

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



(Policy debate)


Vote No 39 – Rural Development and Land Reform:

Vote No 29 – Mineral Resources:
The MINISTER OF RURAL DEVELOPMENT AND LAND REFORM: Hon Chairperson, thank you very much for the honour. To save time, allow me to observe protocol instead of reading it through.

June is a very important month for us. We use this month to commemorate two of the most emotional events in our history. Both of these events recall the pain and suffering of the people of our country, but also provide us with comfort, hope, and a sense of achievement. It is a month where we recall these events solemnly, with great dignity and pride.

It was 60 years ago that the Freedom Charter was launched in that dusty town, Kliptown. This historic and ground-breaking document still serves as our moral compass today, our blueprint for a better, more just and equitable future. It remains as relevant now as it was those 60 years ago. We remember the visionaries, from all walks of life, that contributed to this hallowed document for a better life for all South Africans. June is also the month where we commemorate and celebrate the heroism of our youth as driving forces for change.

We recall with pride the young lions who, nearly 40 years ago, sacrificed their lives and learning so that future generations might see true liberation and enjoy quality education. We are forever indebted to their commitment and bravery. These events are therefore forever etched in our minds as reminders of the needs, hopes, and aspirations of all our people, whom we have the honour and duty to serve to the best of our abilities.

In its preamble, the Freedom Charter states: “South Africa belongs to all who live in it, black and white”. Clause 4 of the Charter states the following:

The Land Shall be Shared Among Those Who Work It!


Restrictions of land ownership on a racial basis shall be ended, and all the land re-divided amongst those who work it to banish famine and land hunger;

The state shall help the peasants with implements, seed, tractors, and dams to save the soil and assist the tillers;

Freedom of movement shall be guaranteed to all who work on the land;

All shall have the right to occupy land wherever they choose;


People shall not be robbed of their cattle, and forced labour and farm prisons shall be abolished.

It is the responsibility of the democratic, developmental state to translate this dictum into a socioeconomic reality. As part of its work towards the installation of our democratic dispensation, the ANC developed the Ready to Govern document, which has four pillars: to strive for the achievement of the right of all South Africans, as a whole, to political and economic self-determination in a united South Africa; to overcome the legacy of inequality and injustice created by colonialism and apartheid in a swift, progressive, and principled way; to develop a sustainable economy and state infrastructure that will progressively improve the quality of life of all South Africans; and to encourage the flourishing of the feeling that South Africa belongs to all who live in it, to promote common loyalty to, and pride in, the country; and to create a universal sense of freedom and security within its borders.

The Constitution of the Republic gives concrete expression to the Freedom Charter and the Ready to Govern document when it states in its preamble:

We, the people of South Africa,

Recognise the injustices of our past;


Honour those who suffered for justice and freedom in our land;

Respect those who have worked to build and develop our country; and Believe that South Africa belongs to all who live in it, united in our diversity.

We, therefore, through our freely elected representatives, adopt this Constitution as the supreme law of the Republic so as to –

Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;

Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;

Improve the quality of life of all citizens and free the potential of each person; and

Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.

Section 25(5) of the Constitution of our Republic enjoins the state to:

... take reasonable legislative and other measures, within its available resources, to foster conditions which enable citizens to gain access to land on an equitable basis.
These constitutional imperatives are at the core of the mandate of the Department of Rural Development and Land Reform.

The litmus test for all policies is whether or not they are redistributive in character. Consultations with organised agriculture, farm workers’ unions, civil society organisations with an interest in land, and academics have taken place. We are now consolidating the inputs made by these partners.

During his state of the nation address, the President announced that the government will conduct 50 pilot studies on the 50/50 policy framework by 2019, and that the Regulation of Agricultural Land Holdings Bill, which will introduce land ceilings and prohibit land ownership by foreign nationals, will be submitted to Parliament this year.

We have seen tremendous activity and interest from various sectors in the agricultural economy; the use of an annual rate of turnover to determine the nature and extent of redistribution and equity; an idea bank and inclusive social compacts; social accords on living conditions; skills development; education and training and housing; a funding model of R1 billion per year for land reform for the next
15 years, based on strong credit and business case approvals; the right to choose partners; and adherence to Chapter 6 of the National Development Plan.
This is a big proposal from the Agricultural Business Chamber, Agbiz, and we think it is something that we need to consider very seriously as part of the broad spectrum of contributions towards land reform in our country. Establishment of farm workers’ trusts and farm villages, but without separate titles, and a 50/50 share equity model in the business, with government providing resources for 50% and Wildlife Ranching South Africa providing the other 50% at a low interest rate of 2,5% per annum over a period of 40 years. There are several other proposals which are being considered, but I won’t go through them, hon Chairperson.

We have looked at South Africa’s history of land ownership patterns since the advent of the 1913 Natives Land Act, as well as experience elsewhere in the world, particularly Europe and a few countries in Latin America. Both scenarios are instructive.

The South African experience shows that the aggregate farmland over this period has generally remained stable, being disturbed by fluctuations in the number of people entering or leaving farming, influencing, in turn, the fall of the average farm size from 950 ha and 750 ha, between 1918 and 1950, and between 750 ha to over
2 000 ha, currently. In Europe, the general, average farm size is
14 ha, while in Latin America, it ranges between approximately 72 ha and 84 ha. Closer to home, the Southern African Development Community SADC, region, the general trend is that of prohibition,
unless foreign nationals have joined up with nationals, provided the latter are the majority shareholder in such a joint venture.

Taking these scenarios into account, the general views shared at our recent National Land Tenure Summit, the pronouncements by the President during his state of the nation address, and the historical need to address the brutal legacy of colonialism and grand apartheid, we have come up with the following policy proposals on the ceilings for both natural and juristic persons. For small-scale farms, the ceiling for a viable, commercial, small-scale farm should be no more than 1 000 ha. For medium-scale farms, it should be no more than 2 500 ha; and for large-scale farms, this should be no more than 5 000 ha.

Any excess land portions between each of these categories and above the 12 000 ha maximum shall be expropriated and redistributed, and compensation will be on the basis of the just-and-equitable principle enshrined in section 25(3) of our Constitution. We have come up with a special category to address the 12 000 ha maximum announced by President Zuma during his state of the nation address, which will be applicable to three categories of land use: forestry, game farms, and renewable energy farms.

We also think there is merit in the proposal by the African Farmers’ Association of South Africa, Afasa, on the use of the rate of turnover. We have come to the conclusion that this option would fit
well in circumstances where sugar, grapes, vegetables, fruit, and horticulture are concerned. In such cases, however, off-farm equity would be more appropriate.

Given that my time is fast running out, I will move on and get closer to the strategy on page 7. In his state of the nation address, President Zuma announced that government has set aside R2 billion in this financial year for the implementation of Agri-
parks in all 44 districts, prioritising the 27 poorest ones. One per cent, or R20 million, of this will be allocated to institutional and capacity development. These Agri-parks are an integral part and driver of the Rural Economy Transformation Model. Producers will have a 70% equity in the Agri-parks, with the remaining 30% distributed across state and other commercial interests in these Agri-parks. The state’s strategic support will diminish over a period of 10 years, with producers taking full control.

I will not speak on the legislation which already exists. I will jump straight to the conclusion. The revenue that you see there is R9,3 billion for 2015-16; R10,3 billion for 2016-17; and
R10,8 billion for 2017-18.

Let me conclude by referring, again, to the Ready to Govern document, which anticipated a specific transformative path of a democratic, developmental state. It is very instructive, and states the following: Legislation on economic matters shall be guided by
the principle of encouraging collaboration between public, private, co-operative, communal, and small-scale farming family sectors, with a view to reducing inequality, promoting growth, and providing goods and services for the whole population.

The Bill of Rights shall establish the principles and procedures whereby land rights will be restored to those deprived of them by apartheid statutes. A land claims tribunal, functioning in an equitable manner according to principles of justice laid out in legislation will, wherever it is feasible to do so, restore such rights. In doing so, it will take into account the role of compensation to be paid by the state to those whose existing titles are affected. Provisions relating to property rights and compensation will have to be applied in such a way that they are not manipulated so as to frustrate a national land reform programme.

This is a very important point. One will observe this policy speech basically addresses the demands of the people, as expressed in the Freedom Charter and the Ready to Govern document, which provides an economic framework for the policies of the ANC-led government. I thank you very much. [Applause.]

The MINISTER OF MINERAL RESOURCES: Chairperson, hon members, allow me to observe protocol. It gives me great pleasure to introduce to the National Council of Provinces the debate on the Budget Vote of my department for the 2015-16 financial year.
A budget of R1,618 billion has been allocated to the Department of Mineral Resources for the current financial year. The department has, in turn, apportioned R800,9 million to entities, R528,4 million for the compensation of employees, and R277,6 million to goods and services, with the remaining R11,5 million going to capital expenditure.

As we deliver this budget, one is encouraged by the early signs of a performance turnaround in the industry, following a sustained depression of the global environment since the implosion caused by the economic and financial crisis.

In our country, the industry experienced a growth of 10,2% in the first quarter, year on year, corroborating the characteristic resilience of the mining industry on which the economy of the country still largely depends. As part of our strategy of increasing investment in the industry, government will be convening stakeholders later this year in a Mining Phakisa, which will focus on unlocking the growth in the mining industry and enhancing the beneficiation of our minerals.

We have initiated programmes that will strengthen the capacity and enhance the skills of our staff. In this regard, we have engaged with the University of the Witwatersrand Business School to provide courses relating to management and executive development. We are also proud to have enrolled 20 women in middle management in the
Accelerated Development Programme with the National School of Government as part of empowering women in our department.

In addition, 30 officials have been registered to study an environmental management inspection course at the University of Pretoria for three months in order to equip them to handle environmental authorisation for mining, prospecting, and other related activities. We intend to continue with this programme to strengthen both our environmental management and enforcement capabilities. Furthermore, the department, in collaboration with the Mining Qualifications Authority, MQA, is training 10 learner inspectors per year to enhance capacity in the Mine Health and Safety Inspectorate.

The department and the Mine Health and Safety Council have, in collaboration with stakeholders, commenced with initiatives to commemorate and honour mine workers who lost their lives in the course of duty. One such initiative is in the Evander area in Mpumalanga, where the National Union of Mineworkers brought to our attention a gravesite of unknown mine workers. We have since initiated an investigation into the names of the people and we will ensure that a decent monument is eventually erected in their honour.

Also, we recently commemorated the Vaal Reefs Mine Disaster, which occurred on 10 May 1995. On that fateful day, a runaway locomotive went down a shaft, resulting in the loss of 104 miners who were
being transported in a shaft conveyance. This still remains one of the biggest tragedies in the mining history of our country.
Following the disaster, the Mine Health and Safety Act of 1996 was enacted, which has significantly contributed to the improvement in the health and safety of mine workers.

We continue to promote a culture of occupational health and safety whilst driving towards zero harm in the industry. Accordingly, there has been a reduction of about 86% in fatalities, from 615 in 1993 to
84 in 2014, which was the safest year on record in our mining history. Assessment of the figures until the end of March 2015 shows that we are well on track to improving further on that record. We will continue to strengthen those efforts and ensure that our record on the health of mine workers also demonstrates considerable improvement.

Hence, government will continue to collaborate with other stakeholders through the SA National Aids Council to monitor and implement the national strategic plan in an effort to reduce and prevent TB cases and HIV infections. Through the Mine Health and Safety Council, we will also monitor the situation to ensure that the November 2014 Mine Health and Safety Tripartite Summit commitments and action plans are implemented to ensure that all mine workers ultimately return from work, unharmed, every day.
We continue to partner with stakeholders through the Mining Qualifications Authority to ensure that skills development programmes respond to and assist with the development of capacity amongst unemployed youth, women, mine workers, ex-mine workers, and mining communities. Equally, the MQA implements skills development programmes in collaboration with traditional leaders and provincial and local government. Some projects include 600 unemployed youths trained in portable and entrepreneurial skills in the Oliver Tambo District Municipality. I will skip some of the other programmes.
They are in the speech. Members will be able to read about them for themselves.

The MQA will continue to support the mining sector and communities with relevant skills programmes through its regional offices. These offices have been established in rural Technical and Vocational Education and Training, TVET, colleges and are now operational in the major mining- and labour-sending provinces across the country.

I deliver this speech at a time when the mining industry is faced with challenges as a result of the depression of commodity prices, leading to unfortunate announcements of job shedding. With regard to this, we decided at a Migdett meeting, or Mining Growth, Development and Employment Task Team meeting, to set up a task team focusing on saving jobs.
We continue to appeal to mining rights holders not to treat the shedding of jobs as a numbers game, and, rather, to appreciate the compliance and social aspects of retrenchment. In this regard, mining companies are reminded not only to have future forums but must also ensure that they are fully functional as they provide a proactive mechanism in managing downscaling at a company level.
Likewise, we would like to inform you that a new mineral and petroleum board, which was established to provide advice, will also, in collaboration with the Migdett, be looking at this issue of job losses.

Yesterday the gold sector began negotiating a new wage deal. I take this opportunity to urge the industry to be transparent and to negotiate in good faith. I also urge the unions to take into account the current economic climate with an emphasis on the saving of jobs for those of our people who are employed.

As a further contribution to job creation, growth, and the sustainability of the mining industry, the department has approved a number of new mining rights spread across various provinces, covering coal, manganese, and diamonds. These rights have the potential to contribute to the creation of much-needed jobs in the country.

We recently released the results of the Mining Charter assessment coinciding with the Year of the Freedom Charter, after 10 years of
implementation of this tool to redress past imbalances. In this regard, we have commenced with the issuing of notices to licence holders who are not compliant with the charter. The Chamber of Mines has, in turn, launched a legal challenge to some aspects of the charter, and the department is defending the action.

We remain committed to the creation of a legislative framework that enables the country to have a globally competitive, sustainable, and transformed mining and minerals industry. It is our guiding principle to legislate, in this regard - as Charles Dickens wrote in a different historical context - for the “best of times” and for the “worst of times”. In this regard, the department restates its readiness to provide necessary support to the legislators in processing the Mineral and Petroleum Resources Development Amendment Bill, currently with the legislators.

Furthermore, the Mine Health and Safety Amendment Bill is currently being processed through the National Economic Development and Labour Council, Nedlac. I’m pleased to note the progress which has been made in discussions with stakeholders and the Bill will, upon approval by Cabinet, be referred to Parliament. I have also prioritised the Bill to create a legal framework for the state-owned mining company, namely the African Exploration Mining and Finance Corporation, for referral to Cabinet and Parliament during this financial year.
To ensure policy clarity on coal and to promote sustainable management of this resource, I have directed that urgent work commence on the development of a coal policy framework. Accordingly, a task team has already commenced with the work, in this regard.

With respect to upstream oil and gas development, government will continue to create an enabling environment to increase exploration in both onshore and offshore territory. Accordingly, we have already gazetted regulations for oil and gas exploration production. We will continue to ensure that exploration and production activities of oil and gas are undertaken in a responsible manner that also protects the environment.

The department will, in collaboration with other government departments and relevant stakeholders, continue to ensure that the housing and living conditions of mine workers and their associated communities are improved. In this regard, the department will provide support to the implementation of the President-led Framework Agreement for a Sustainable Mining Industry and the Revitalisation of Distressed Mining Towns. Many of these are identified in the provinces of Limpopo, Mpumalanga, the North West, the Free State, and Gauteng, and in labour-sending areas in KwaZulu-Natal and the Eastern Cape. I need to assure hon members that areas not mentioned in this package are not escaping attention.
While there are many challenges in improving the housing and living conditions of mine workers, there are encouraging projects which are under way, as we speak. For example, in September 2014, my department handed over 400 houses to mine workers participating in the Royal Bafokeng Platinum’s home ownership project in Rustenburg. This project forms part of the company’s social and labour plans and will see a total of 3 100 units completed by 2018-19 in a manner that creates sustainable human settlements away from historical mining villages as we know them.

Also, yesterday, I officiated at the handover of the Hoofweg Learning and Resource Centre, implemented by Afrisam, here in the Western Cape, as part of their social and labour plan. This centre will go a long way towards improving the quality of learning within the Wesbank community.

The issue of illegal mining continues to receive our attention. Our working together with relevant stakeholders in the fight against illegal mining is yielding positive results. Just last month, the police in Kempton Park, Gauteng, arrested members of an illegal mining syndicate alleged to have fabricated over 16 000 fraudulent invoices worth about R437 million, reflecting purchases of second- hand gold jewellery. We will continue with our programme to address this matter decisively.
The department has also embarked on a process of raising awareness regarding the dangers of illegal mining and taking action against those found to be mining illegally. In this regard, relevant communities will be engaged in this matter, especially those who are involved in sand mining.

Members of the House will be aware that mining in South Africa often takes place on communal land or in close proximity to residential areas. This has, in some instances, led to conflicts over land use. We have thus created a number of mechanisms, working with provincial and local government, to deal with the conflicts arising from either consultation processes or those encountered during the mining phase. This includes task teams comprising our department, provincial government, traditional leaders, and relevant mining companies.
During the previous financial year, we held 263 consultations, the majority of which were in Gauteng, followed by the North West and Limpopo.

I would also like to inform hon members that we will continue to empower communities with necessary information regarding mining so that they can better understand their responsibilities and their rights, in this regard.

During the months of March and April, I conducted three izimbizo in Kimberley, Springbok, and Postmasburg, interacting with the public about mining issues and listening to the concerns of communities.
Uppermost on the list of issues raised were those relating to the support of small-scale mining. We have thus made a commitment to host a workshop on this matter, in conjunction with the Ministry of Small Business Development and the Northern Cape provincial government. This workshop is tentatively scheduled to take place before the end of July 2015.

State-owned entities reporting to the department play a major role in terms of research and development, as well as in implementing strategic programmes of government. Regarding research and development, we will continue to focus on research that will drive the growth of the industry in terms of potential new miners and operations. In this regard, appropriate support and resources will be provided to the Council for Geoscience and Mintek to allow them to continue with geoscientific and mineral processing research.
Similarly, support and guidance will be given to the Mine Health and Safety Council to ensure that the country continues to be involved in relevant and necessary mine health and safety research.

The SA Diamond & Precious Metals Regulator and the State Diamond Trader will continue to play a critical role in the promotion of beneficiation and in the regulation of South African diamonds and precious metals.

I would also like to inform hon members that preparations are already under way to hold a Diamond Indaba in October 2015, which
will provide an opportunity for stakeholders to discuss and address issues in this sector. We are also examining possibilities of establishing a bourse in the country.

As I conclude, I wish to thank members of this House for their support and diligent oversight of the work of my department. We look forward to continued engagement, and urge you to support this budget. I thank you. [Applause.]

Mr O J SEFAKO: Hon Chairperson, hon members, Ministers, Deputy Ministers, directors-general, senior officials and staff members, our viewers at home, and guests in the gallery, it is, indeed, a great pleasure to be given this opportunity to participate in the policy debates on Budget Votes 39 and 29 – the nine is a common denominator, because the two are, of course, inter-related.

I must hasten to confirm that the two departments did present before the Select Committee on Land and Mineral Resources their annual performance plans and their strategies for engagement. The committee had the opportunity to engage with both departments, although they presented individually, of course. There was a healthy and cordial discussion. As hon members represented their respective provinces, issues were highlighted and it was indicated that these should be broken down per province and per district.
Allow me, from the onset, to express my gratitude to His Excellency the President of the Republic of South Africa for deeming it fit to extend the window of opportunity for those who could not make their submissions for land claims by 31 December 1998. The opportunity to do so has been extended to 2019. Tribal leaders, including those of the Khoi and San, were, unfortunately, not able to submit their claims, previously. They will now have the opportunity to do so.

The land issue is a burning, national question, which, of course, needs to be handled with caution. I clearly remember the Minister of Land Reform and Rural Development making an invitation to the two land summits held in September 2014 and March 2015. The debates and contributions of the invitees became heated. I remember, quite clearly, Kgosi Thobejane making a very, very sharp statement that this matter could not be handled with kid gloves or be romanticised.

Commercial farmers, workers’ representatives, and members of civil society were all at those summits. The most important issue that came up was dealing with the 50/50 question, which is creating an opportunity that, historically, has been denied. Workers had been reduced to walking and talking instruments. The ANC-led government has managed to open up this opportunity so that the workers on the farms can also have the opportunity to own. It is a process that is taking place.
Getting to the question of mineral resources, the two Budget Votes are the stepping stones towards narrowing the gap between the haves and the have-nots. This gap was deliberately and systemically created by the previous regimes, starting from the imperialists, the colonialists, and the colonialists of a special type – apartheid, of course, and its surrogate states of the homelands. They were equally unfair in terms of land redistribution.

Much has been said by my two hon Ministers. What I am really saying is that, as the ANC ...

... ons ondersteun die twee begrotingsposte. Dit is vir my eintlik ’n genot om die geleentheid wat u verskaf het te gebruik, en ek bedank u. Dis ’n plesier. Dankie. [... we support the two Budget Votes. It is actually a pleasure to make use of the opportunity that you have granted me and I thank you. It is a pleasure. Thank you.]

An HON MEMBER: Hoor! Hoor! [Hear! Hear!] [Applause.]

Mr C F B SMIT: Hon Chairperson, hon Ministers, Deputy Ministers, hon members, and guests in the gallery, the hon Minister Nkwinti will soon be labelled as the destroyer of agriculture in South Africa, due to his flip-flop, populist, and unrealistic political announcements on land ownership.
It is very clear to South Africans that the hon Minister is clueless when it comes to agriculture. However, let us not forget that his mandate from Luthuli House is to bow down to the authoritarian influences of the SACP by ensuring that government has ownership of the land - not the people, but Zuma’s government. You see, this is an attempt ...

The CHAIRPERSON OF THE NCOP: Hon Smit, it is ... I suspect you will tell me “Zuma’s government” is a point in debate?

Mr C F B SMIT: Chair, let me rephrase: the hon President Zuma’s government.

The CHAIRPERSON OF THE NCOP: Please proceed.

Mr C F B SMIT: You see, this is an attempt to intensify the crony society of the ANC elite, to enrich themselves even more at the expense of the poor, and to hold onto power by holding the people to ransom with land - another blackmail strategy of a power-hungry and very nervous ANC. This will not work, hon Minister. The people of South Africa can see what you are doing and they will vote the ANC out as the ANC does not care about the people anymore.

Hon Minister, what research was done to justify the one-size-fits- all approach to land caps, or was this an ANC thumb-suck exercise? The current proposal of 1 000 ha for small-scale farmers, 2 500 ha
for medium-size farmers, and 5 000 ha for commercial farmers, universally, is totally unrealistic, especially when it comes to areas like the Karoo. The DA pleads with you, hon Minister.
Reconsider this, as it will also cap the viability of agriculture and the 1 million jobs we are to create though agriculture, as per the National Development Plan.

The other populist announcement made by the hon Minister was that foreign nationals may no longer own land in South Africa. Now, my question to you, hon Minister, is: How many of your comrades and ANC elite own land in foreign countries, like Zimbabwe? This is totally hypocritical from the ANC if you ask me. Furthermore, this will also hamper foreign investment and our economy that is already fragile, in turn costing us more jobs.

I attended the Communal Land Indaba in Johannesburg on 29 and 30 May, this year. At the Indaba, it was clear that the majority of people felt that they should have full ownership of communal land that can be used as collateral for financing further individual development. However, the Minister limited the options for discussion to only land-use rights and so-called title deeds that only give households land-use rights.

The department tried to justify these artificial title deeds as legitimate use as security for financing at financial institutions. Now, this is similar to my taking a copy of my lease agreement to
the bank and asking them to finance me based on that. Really, Minister, one plus one does not make three. You see? Once again, the ANC-led government does not want the poor tribal communities to break free from their grip of power. Instead, they hold onto land rights by denying these communities their constitutional right to have individual ownership of land.

In fact, the Constitution prescribes in the Bill of Rights, Chapter 2, sections 25(5) and (6), that the state must take reasonable legislative and other measures, within its available resources, to foster conditions which enable citizens to gain access to land on an equitable basis. This section the Minister mentioned. What he didn’t mention is the second part: A person or community whose tenure of land is legally insecure as a result of past racially discriminatory laws or practices is entitled, to the extent provided by an Act of Parliament, either to tenure which is legally secure or to comparable redress.

You see, hon Minister, we preach about integrated communities all over South Africa to break down the barriers of apartheid, but in communal and tribal areas, you want to reinforce these racial barriers to isolate these communities and control access to the areas, mostly based on race. It’s like, this is the Pedi area, this is the Tsonga area, so that other people cannot move into those areas and stay there.
What is the ANC’s intention in this regard, hon Minister? The “Wagon Wheel” Model for Communal Tenure is highly flawed, as this model will only reinforce the deprivation of individual rights and freedoms and will keep these communities locked up in poverty and dependency. Give the people what they deserve, hon Minister. That is, title deeds with full ownership that they can use to break free from poverty through individual freedoms and choices.

The department acknowledges that the reopening of land claims is giving them sleepless nights, as the previous claims have not yet been finalised.

My question remains: How long will people have to wait for their claims to be finalised? As per the current rate up to now, an average of 4 500 claims per year will be finalised over a 20-year period if one looks at the approximately 89 O00 claims from the previous claims period. At this rate, it will take the department
84 years to finalise the expected 397 000 new claims.

In addition, looking at the budget for land restitution of

R2 billion for this financial year and cost calculation, based on current land costs of R200 billion before inflation, to settle the
397 000 new claims will take the department at least 100 years to finalise. [Interjections.] This is an unfunded mandate, hon Minister. What wouldn’t you do for votes?
Hon Minister, you are totally neglecting rural development. The development of 12 000 rural livelihoods by 2020 is mediocre and not much to look forward to, considering the desperate state of these communities. Furthermore, cutting the number of socioeconomic infrastructure projects from 200 in 2014-15 to 115 in 2015-16 illustrates lack of commitment towards rural development. Another noticeable decline is the budget cut on the National Rural Youth Service Corps, Narysec, Programme that dropped with a staggering R332 million in 2015-16. This is a third less!

Under a DA-led government, we would increase the Land Reform budget to R10 billion over five years for the creation of post-settlement support and give an additional R130 million to the Land Claims Commission to allow for better monitoring of land reform processes. This is the vision of a caring government, hon Minister, a DA-led government that delivers real freedom to its people in a society of fairness that opens up the fruits of opportunity for all South Africans. This is a vision of individual freedom and full ownership. I thank you.

Mr J P PARKIES: Hon Deputy Chair, hon Minister, Deputy Ministers, hon members of the House, invited guests, the Reconstruction and Development Programme, RDP, document, asserts:
No political democracy can survive and flourish if the mass of our people remain in poverty, without land, without tangible prospects for a better life.

Democracy will really have little content and will be short-lived if it cannot address the socioeconomic circumstances facing the majority of our people within the expanding and growing economy. Our view of history is coloured by sedentary, landlubber historians. The RDP vision and the principles of the Freedom Charter remain our lodestar. We cannot talk about rural development without talking about land. Agriculture is a primary industry, and growth in the economy lies in the sector of agriculture.

The domineering confidence and serpentine DA behaviour in our politics on the land question represent capital. Growth and the measurable income in the output of the modern industrial economy are commonly seen as a priority. Development is portrayed as a marginal effort of redistribution to urban and rural poverty, and development is, or ought to be, viewed as a deduction from growth.

The physical infrastructure is a critical part of rural development for the sustainable livelihood of our people, meaning access to health care, education, affordable and safe public transport, sanitation, housing, and clean water. Any choice involves and has effects on political, social, and economic levels. We need fundamental change in our institutions and the processes, hon
Minister. The strategic objective of Rural Development should include firm co-ordination of the activities of the relevant government agencies, and the control of such should be for the people and by the people they are intended for.

Its positives and negatives depend on those who are involved to make a choice by virtue of authority and the force of willpower. It is the responsibility of the developmental state, therefore, to tamper with the structure of monopoly capital in the sector and the entire economy. The impact of our actions lies at the central commitment of our people to support the collective actions of the ANC-led government.

The fate of our people cannot be left by chance to the juggernaut of the liberal corporate regime and the masters of grand larceny. This process cannot be left to spontaneity. Our ANC-led government policies are not spurious on the land question. We are not intoxicated with populism.

Intensification, mechanisation, and the use of inputs during the 20th century have been hugely beneficial for the planet. New technology in the 21st century should yield gains, enabling us to turn more land back to Mother Nature to feed the approximately
9 billion people on planet Earth. That will realise real and genuine black economic empowerment in our land.
On Friday, hon Minister and Deputy Ministers, I raised an issue in our debate on agriculture. We were talking about Agri-parks. The issue I raised in that debate related to the seed industry. If we are to talk about real and genuine black economic empowerment, our people must be involved as producers and breeders, distributors and exporters, including labelling, in that particular sector. This is because it is an important sector if we were to talk about agribusiness and agro-processing – in order to make a dent in the poverty and unemployment in our land.

Imports coming in should create jobs for our people, production, and distribution. However, the issue that we raise, again, is in the same context - there is no concurrent legislation in place protecting traditional agriculture linked to the aforesaid. The rural, poor masses must be involved in storage and distribution.
This is because when it comes to the Agri-parks we are talking about, we can ask the question: In terms of these poor masses of our people, who will be the seed providers?

We carry knowledge of the pieces of legislation that are currently in Parliament that deal with the sector. We are aware of that.
However, will those pieces of legislation, the Bills, protect the traditional and small-scale farmers in the context of the Agri-parks that we are talking about and you are championing? If we were to be politically and economically independent, we ought to restructure the industry in totality or tamper with the structure. We ought to
ponder the realistic view on what the seed industry can have and contribute to the agricultural sector and agrarian reform.

The above view or perspective represents a holistic view and approach in what we are articulating in terms of reindustrialisation and the agro-industrial approach in the context of these Agri-parks.

The energy sector and the agricultural industry cannot be left entirely to private monopoly. I’ve raised this point already. Rural infrastructure is critical to facilitating access to markets and the availability of food, which is, first and foremost, a source of nutrition and, only secondarily, an item for trade. I repeat what I said on Friday - we need to be vigilant in reorganising the sector.

Regarding the population in sub-Saharan Africa, 214 million people are undernourished, representing 26,6% of the region’s people.

The fact that the apartheid regime excluded the majority of our people does not make our people less eligible for their contribution to the economy and that their relief be left entirely in the hands of the charity of their social betters in the kirk.

Hon Minister, agriculture is responsible for 70% of worldwide water usage. In South Africa alone, 60% of the water is consumed by this sector. I deliberately focused on and attention paid to this
particular sector. We contribute 50%, as a country, to the seed business of Africa.

Let’s talk about the co-operatives. Co-operatives in our ANC-led government’s programme must culminate in a serious business for our people - black people. That is what will represent genuine black economic empowerment. Co-operatives in our land, in our programme, should not be a makeshift process or makeshift business of poor people who are looking for jobs, who are affected by the tormenting poverty in our land. We need to use co-operatives to crack and tamper with the structure of our economy in this country. That is how we will transform our economy and crack the monopoly. Thank you. [Applause.]

Mr V E MTILENI: Eka Mutshamaxitulu, ku katsa na vaendzi lava nga kona eka galari, ndzi ri inhlikanhi. [To the Deputy Chairperson and the guests present in the gallery, good afternoon.]

For the past 21 years, this department has been limping from one excuse to another, trying to explain its failure to redistribute land in a meaningful manner to black people who were dispossessed of their land. Yours is a very good example of how not to develop policy.

From the 30% target of land transferred back to people by 1999 - a target that has shifted so much that it does not get mentioned
anymore - to the continuous fiddling with land redistribution programmes; from the settlement and land acquisition grant, which later got dumped in favour of the land redistribution for agricultural development grant to the Proactive Land Acquisition Strategy, to the superficial protection of farm workers from eviction through the Extension of Security of Tenure Act; and now, recapitalisation and development: All these interventions have failed to even scratch the surface of the problem of landlessness in our country, and, more sadly, have failed to protect farm workers from eviction from the farms they have been on for generations.

What these changes in approach show is that the department does not know how to approach land reform. The very few that have been given their land back through land reform have been further disenfranchised by the government’s lack of post-settlement support and poor settlement planning.

The people of Gwatyu in the Eastern Cape, whose tenure to land is insecure and who have failed to get any support from your government due to favouritism and deeply-embedded corruption in that province, are all testimony to the ANC-led government’s neglect of rural people. The Khoi and the San have been illegitimised by your government, as evidenced by the manner your government has handled the ?Khomani San land claim in the Northern Cape. The path chosen by the ANC after 1994 to the resolution of the land question has now been accepted by many to have failed spectacularly. Only 8% of the
land has been returned to people, 90% of which are considered to be failed projects.

As if that were not enough, the ANC has further raised the hopes of our people through the Land Restitution and Reform Laws Amendment Act, leading to a number of big land claims by chiefs who were misled by President Jacob Zuma that the amending Act would allow them to even claim for land that was stolen before the 1913 deadline originally set as the cut-off date for land claims. The amending Act makes no mention of claims going back to the period of dispossession before 1913. The ANC and the President have misled our people, once again. Our solution to the land question is simple: Expropriate land without compensation for equal redistribution; subdivide large, unproductive farms into small manageable farms; and ban all forms of farm evictions. [Interjections.]

Minister, while we’re reflecting on the past 20 years, it is important to remember mine workers in the Aurora Mine, which, since the empowerment deal involving President Jacob Zuma’s nephew and former President Nelson Mandela’s grandson collapsed, has left mine workers destitute. Lest we forget.

Minister, almost three years ago, it was Lonmin Mine, together with the ANC-led government, that killed our mine workers for what is still a very slave-like wage. [Interjections.] Lest we forget. It was Lonmin Mine, together with the Deputy President, that engaged in
the criminality of aggressive tax avoidance by transferring millions and millions of rand of profits so that they could mislead everyone and say they could not afford R12 500 per month, because they were not making a profit. Minister, your department knew very well that that was a lie.

The public has entrusted the Minister with a responsibility and with taxpayers’ money to ensure that those who are awarded licences do not exploit mine workers and loot our mineral resources. The Budget Vote tabled by the Minister is a clear indication that the ANC-led government insists on a very weak and loose approach to mining in the country. It should not surprise the House that the ANC-led government and the Minister have allocated only a mere R1,6 billion to the country’s mineral wealth. Over the next three years, only R4,9 billion is allocated to your department, Minister, to see to it that South Africa enjoys the much-celebrated, rich mineral resources beneath the soil.

In 2014, unofficial statistics showed that there were 84 fatalities in the mining sector, which could have been prevented had profit not taken precedence over mine workers’ safety. Yet, Minister, you have allocated only R563 million, 11% over the medium term of your budget, to mine health and safety. The EFF rejects this budget.

Hi ri khanimamba eka Mutshamaxitulu na vahlaleri va nongonoko lowu eka thelevhixini, ku katsa na Yindlu hinkwayo. Ndzi ri eka n’wina
vanani na nhlikanhi lowunene. (Translation of Xitsonga paragraph follows.)

[To the Deputy Chairperson and the viewers of this programme on television, including the House at large, we say thank you very much. I wish you a good afternoon.]

Mashego-Dlamini): Deputy Chairperson, all protocol observed. On this, the 60th anniversary of the Freedom Charter, we remember the famous words: “South Africa belongs to all who live in it, black and white.” We present this budget, Vote No 39, on the 39th anniversary of the students’ struggle against an inferior Bantu education. Their selfless struggle against the apartheid military junta has put us where we are today. Accordingly, we can today stand tall and say their struggle was not in vain and we dare not fail the efforts they made in the liberation of the broader society.

His Excellency the President, in the state of the nation address, announced the Nine-Point Plan to transform the South African economy. The Department of Rural Development and Land Reform has a significant role to play in several areas of these points. Most importantly, we have a key role in Priority 1: Revitalising agriculture and the agro-processing value chain. Given the nature of our mandate of rural development, we will also be driving initiatives to give effect to other priorities, including unlocking
small, medium and micro enterprises and co-operatives and the potential of township and rural enterprises.

Our Constitution exhorts us to improve the quality of life of all citizens and free the potential of each person, and we all share the responsibility of finding the best way to do this. Radical change must bring real benefits to rural people and the poor across South Africa.

The National Development Plan provides a long-term vision for accelerating development so that food security can increase and unemployment and inequality can decrease, creating a more inclusive society. This we will achieve through the diligent implementation of our plans and programmes, as articulated in our annual performance plan.

The department implements the socioeconomic infrastructure projects to support rural communities. One of these, completed last year, is the Beaufort West Youth Hub. It consists of a TVET college for the youth, community swimming pool, gymnasium, community amphitheatre, and a combi court for several sports disciplines. The total cost was R55 million. This facility, and others like it, underscores our commitment to placing youth at the centre of development by giving them opportunities to access the skills required to build our country.
Over the past financial year, the Animal and Veld Management Programme, or AVMP, has gained momentum across the country with more than 200 projects implemented. Significant progress was made in KwaZulu-Natal where several projects were completed to a value of R45 million, benefiting 2 000 livestock farmers. In addition, we have also launched an auction facility in Msinga, which is beginning to assist farmers to turn their livestock into economic assets and generate income for rural households. The AVMP created more than
1 600 jobs last year, specifically through the soil rehabilitation and de-bushing component.

Over the past year, we have also implemented 31 projects to revitalise five irrigation schemes across the country, with a key focus in KwaZulu-Natal, Mpumalanga, the Eastern Cape, and the North West through the implementation of the River Valley Catalytic Programme, which deals primarily with the revitalisation of irrigation schemes and agricultural development along river beds in South Africa. In this financial year, we intend to build on the gains that we have achieved thus far.

In the state of the nation address, His Excellency the President announced the establishment of district Agri-parks. Agri-parks will, in the medium term, be established in all 44 districts, as indicated by the Minister. An Agri-park will essentially ensure development from primary production through to processing and value addition, while, at the same time, fostering development-related enterprises.
The Agri-parks will be designed in a manner that allows the central component of the model to eventually emerge into a centre for various activities not limited to agriculture, including warehousing, processing, retail, input supplies, distribution, service access, financial services, market access, training, and development.

These parks will organise and mobilise farmers and agribusiness entrepreneurs. Partnerships with government departments, such as the Department of Agriculture, Forestry and Fisheries, the Department of Trade and Investment, the Department of Small Business Development, the Department of Co-operative Governance and Traditional Affairs, the Department of Water And Sanitation, provincial departments of agriculture and rural development and district municipalities, are critical to develop economic infrastructure like roads, energy, water, ICT, transportation and logistics corridors that support the Agri-park value chain.

We are looking to the Agri-parks model to achieve a transformational breakthrough - improving capacity and production of smallholder farmers, value-chain development, market access, encouraging private farmers’ participation and investment, and, most significantly, ensuring that resources are better used through focused interventions that can contribute to significant job creation.
In this financial year, the department will drive the establishment of the Agri-parks using the current programmes as levers for implementation. The following programmes will assist us to drive this initiative: the River Valley Catalytic Programme, the Animal and Veld Management Programme, enterprise and industry development, infrastructure development, and the Narysec programme.

Accordingly, the department has had consultative sessions with provincial and local government. As a result of these interactions, sites have been identified at 39 of the 44 districts across the country. In some areas, work has already commenced, such as in Springbokpan, in the North West, soon to be followed by the Free State, Mpumalanga, and the Eastern Cape. Several projects are already being implemented across the provinces to improve livestock production, crop production, and sustainable land use, as part of a production plan to eventually supply the Agri-parks, when completed.

Given the current challenges faced by black smallholder farmers in production and market access and the limited inroads they have made into the agricultural value chain, we intend to put in place a support mechanism for the Agri-parks for a period of 10 years to ensure sustainability. If implemented as planned, with the collaboration of all sector departments, Agri-parks will lay the foundation for rural industrialisation, make rural economic transformation a reality, and permanently free rural communities
from food insecurity. This will ensure rural economic transformation and food security for our rural communities.

An amount of R2 billion has been set aside for the implementation of the Agri-parks programme this year. This will be allocated across the districts with an additional portion of the resources being made available to the most vulnerable municipalities to assist with technical support and capacity to drive this initiative. A project management unit will be established as a support mechanism to this effect.

We will also build on the work that has started in developing the arts and crafts industry in the rural areas. More than 1 000 women have been trained and assisted in KwaZulu-Natal, Limpopo, Mpumalanga, and the Eastern Cape. We have been able to drive this programme through a partnership with Mninizo Trading. A strategy is being finalised to upscale this programme in this financial year to ensure that it is expanded and extended to all provinces and to also include women in all the various sectors of the industry.

To support these co-operatives with market access, the department has helped to establish a retail outlet in Durban. This, together with the trade fairs that co-operatives have been able to participate in, has significantly improved access to domestic and various international markets. An amount of R39,7 million will be
invested this year to build on this work. This can become a significant job driver in rural areas.

In the past year, we supported the Abasuki Tannery Primary Co- operative, in the Eastern Cape, that focuses on the production of traditional clothing. We are pleased to announce that Abasuki was able to showcase its work at the recent Cape Town International Jazz Festival with the assistance of a private entity called TCIA. This year, we will be increasing our involvement in the area of fashion design and production by supporting various rural enterprises and promoting equity models with established businesses. In this financial year, we have set aside R112 million to support 65 new nonagricultural rural enterprises.

In the past financial year, we supported the development of arts and culture in rural areas through infrastructure development and direct support of co-operatives. In rural development, 4 500 skills development opportunities will be provided through rural economic transformation, and 8 000 people will be employed in rural development initiatives, inclusive of Agri-parks.

The National Rural Youth Service Corps continues to flourish. In this financial year, 4 481 youth will be trained in pertinent skills required for rural economic transformation. These include engineering and the built environment, agricultural development, business management and administration, hospitality, tourism, arts
and crafts, education and development training, and safety and security.

We are pleased to indicate that we have partnered with the Big Fish School of Digital Filmmaking to train our young people, and we have in the gallery today the managing director of the company and Narysec youth who are part of the crew providing communication services to the department. Thank you, Deputy Chairperson. [Time expired.] [Applause.]

Mr R LENTIT (Western Cape): Deputy Chairperson, thank you very much for allowing me to participate in this important debate. Hon Deputy Chairperson, hon Ministers, hon Deputy Ministers, hon members, South Africa is in a unique position to create a sustainable framework that fosters self-sufficiency and supports net food exports.

Indeed, the hon Minister Nkwinti, in his budget speech on 8 May 2015, made reference to section 25(5) of the Constitution of our country. This speaks to the need for restorative justice in the arena of land redistribution. While there is no question of the importance of driving this agenda, it is equally, if not more, critical that we take cognisance of the prescripts of section 24 of the Bill of Rights, which states:

Everyone has the right –
(a) to an environment that is not harmful to their health or wellbeing; and
(b) to have the environment protected for the benefit of present and future generations, through reasonable legislative and other measures that –
(i) prevent pollution and ecological degradation;

(ii) promote conservation; and
(iii) secure sustainable development and use of natural resources while promoting justifiable economic and social development.

A strategy that fails to factor in the importance of climate change will lead to poor results for rural development, land reform, and the agricultural sector, at large.

The Western Cape, alone, produces 23,3% of the national agricultural GDP, which represents 45% of national agricultural exports and employs 150 000 farm workers. Anything that can destabilise the agricultural sector in our province and our country will therefore threaten thousands of jobs and could ruin an important export sector.

Eradicating poverty and deprivation, as denoted in the Reconstruction and Development Programme of 1994, is one of the most critical indicators for a democratic dispensation. In 10 years from now, we will not be judged on the strength of our laws or policies,
but measured against the collective will to deal with climate change. South Africa is vulnerable to the effects of climate change, which have the potential to destabilise agriculture and food security and undermine economic development in our rural areas.

The Western Cape has a Mediterranean climate, and our region is likely to see the greatest weather changes in the country, and that includes Limpopo. That’s why the DA-led Western Cape government has launched the SmartAgriFood project.

Research shows that the Western Cape will see an average warming of between 1,5°C and 3°C. When the climate changes, the farming sector cannot produce in the same way any longer. The apple farmers in the Overberg will experience a lack of water, reduced winter cold, heat stress, and hail. To tackle these changes, the farmers, especially small-scale farmers, will need to get assistance with water planning, management training, and reducing their carbon footprint. The sheep farmers in Laingsburg will suffer from a lack of water, plus drought and heat stress. Small-scale farmers need help in terms of improved water infrastructure and management changes.

Regarding land reform, I mention climate change, specifically, to show how vulnerable our agricultural sector is, and how dangerous it is to make radical changes without a proper understanding of the consequences. That is why the DA-led Western Cape government is concerned about the proposed ceiling on farm land. It is very hard
not to interpret the Minister’s intentions in any other way than that farm land that exceeds the national limits for land, for example 1 000 hectares for a small-scale farm, will be expropriated. This sets a dangerous precedent, and is not necessary to achieve the land reform goals.

Farming is, in essence, a biological process which takes place in an environment in which the characteristics are determined by geology and climate. Hence, a farm of 1 000 hectares in Stellenbosch or Villiersdorp is actually a large estate, while a person cannot make a living in the central Karoo area off 1 000 hectares. A regular farmer’s main income for the year would be R69 300. If we remove the cost of running the farm and if this farm has one worker, then the worker would earn more than the farmer.

The Minister also compared the situation to that of Europe, but Europe is significantly different from our situation here in South Africa. The average farmer in the European Union receives 20% of his or her income from subsidies, and further area-based payments are quite common. Furthermore, the majority of these farmers in the European Union would have a different secondary or often primary source of income. As the distances are much shorter, farmers tend to live in villages, which makes it easier to find additional income.

Most of the countries in Europe aren’t even close to South Africa’s level of self-sufficiency, and on top of that, they pay out massive
subsidies and tariffs that are passed on to the consumer. Economies of scale dictate that farm sizes will increase. This is a global trend, and only in those instances where the state is prepared to intervene heavily with subsidies can this trend be halted.

The Minister, himself, acknowledged that the average farm size in South Africa has increased from 750 ha, in 1950, to more than
2 000 ha, today. For this reason, the number of commercial farms in South Africa declined from 61 000, in 1996, to 39 000, in 2007. To introduce caps on the size of farms when the need is actually the opposite is a huge threat to the sustainability of the industry. If this is to be achieved, the cost to the people of South Africa will increase substantially and will be devastating to the poor.

The main problem with this is that the wrong issue is being addressed. The basic point of departure is that not enough agricultural land is available. For this reason, farm land above the minimum farm size needs to be expropriated and, most importantly, the owners should be compensated according to the principles of section 25(3) of the Constitution - replicated in the current draft Bill. Hence, government will buy this land.

However, we know that between 4% and 7% of all farm land in South Africa is, in any case, traded on the free market, every year. One does not have to expropriate land to get land for redistribution, unless the intention is to expropriate it at prices significantly
lower than market value. This, in turn, would open the state to be challenged in the Constitutional Court.

In conclusion, the DA supports the Minister’s intention of land reform and agricultural transformation. The Bill of Rights is a cornerstone of democracy in South Africa. It enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality, and freedom. The state must respect, protect, promote, and fulfil the rights in the Bill of Rights.

A diagnosis has been made but a symptomatic treatment modality, without dealing with the primary root factors, will not give the prognosis for growth and wellbeing that is required. Land reform, without an integrated environmental strategy that seeks to diagnose a flexible plot to respond to climate change, will result in failure.

Yes, we need transformation in the agricultural sector. The agricultural sector is one of the most important in our province and in our country, and we must be very careful with how we deal with it.

The industry is facing many challenges, and one of the most important ones is climate change. We have to help the industry, not create more obstacles. The land cap proposal is creating much uncertainty and instability in the system. Farmers are hesitant to
invest, with resulting lower-than-expected growth rates. We need reform that works, but we need land reform that works in a growing agricultural sector, not one that breaks it. I thank you.

Mr A S SINGH: Hon Chairperson, Ministers present, Deputy Ministers present, Members of Parliament, officials from departments, guests in our gallery, and fellow South Africans, it is, indeed, a great pleasure and privilege to participate in this very important budget debate for the Department of Rural Development and Land Reform 2015- 16, Budget Vote 39, and Mineral Resources 2015-16, Budget Vote 29.

This is a very historic year. It is the 60th anniversary of the Freedom Charter that was adopted in 1955, in Kliptown, Soweto. The Freedom Charter, in its preamble, states, “South Africa belongs to all who live in it, black and white.” Clause 4 of the Charter says, “The land shall be shared among those who work it!”

The mining industry is on a decline from year to year with a drop in employment, which I believe is a cause for concern, as this was a booming sector with great work opportunities. The department will continue to provide support for the implementation of the Framework Agreement for a Sustainable Mining Industry, and will continue to call on stakeholders to respect and implement it. We welcome the approval of the Department of Mineral Resources for over 36 new mining rights projects in the past 12 months, with the potential to create about 6 000 jobs.
During this debate, we remember all those who lost their lives in mining-related incidents and acknowledge the important role that mine workers have played in shaping the economy of this country. We need to ensure that the goal of zero harm to mine workers is ultimately achieved through intensifying monitoring and enforcement measures. We also welcome the reduction of about 86% of fatalities reported by the mines since the dawn of democracy, as the Minister says, from 615, in 1993, to 84, in 2014. We need to bring this number even lower in the next three years so that the fewer lives lost, the better, working towards the goal of zero harm to mine workers.

There were a number of deaths in the mining sector as a result of occupational diseases, which include pulmonary TB, silicosis, and noise-induced hearing loss. The ANC-led government has transformed a sector that was historically steeped under the influence of colonial production in the apartheid era, which benefited the white owners only, whilst black workers were paid a pittance for their hard work.

In the 2015 January 8 statement, our President, Jacob Zuma, acknowledged and stated that the ANC commits itself to continue working with the people to ensure that there is an enhanced benefit from this ownership. This year, we must finalise the amendments to the applicable laws to ensure that mine workers and mining communities share much more equality in South Africa’s mineral wealth. In a similar vein, the Freedom Charter states that:
The People Shall Share in the Country’s Wealth.


The mineral wealth beneath the soil ... shall be transferred to the ownership of the people as a whole;

The ANC’s vision, since the dawn of democracy in 1994, as reflected in the Reconstruction and Development Programme, states that we must seek the return of private mineral rights to the democratic government, in line with the rest of the world. We must invest in the infrastructure that can unlock the vast mineral wealth of the country, create jobs, and support the local beneficiaries of mineral deposits for the benefit of all South Africans. Our former President, uTata Nelson Mandela once said: “It is in your hands to create a better world for all who live in it.”

The 52nd ANC national conference in Polokwane resolved that the production and ownership should be transformed and inclusive, through an active and well-resourced industrial and trade policy aimed at creating decent work through the expansion of labour- absorbing sectors. The ANC-led government continues to contribute significantly to the socioeconomic development of this country.

The low levels of mineral beneficiation in the country deny South Africans an opportunity to aggressively address the development challenge related to the triple challenges of unemployment, poverty, and inequality, especially amongst the youth. We are, however,
encouraged by the Mine Health and Safety Council’s plan to invest in a centre of excellence to conduct research, health and safety training, and education that includes the youth. As we take part in this very important debate in June, we want to salute the youth of June 1976 who lost their lives.

We are encouraged by the opportunities to promote investment and material beneficiation, the plan to develop the oceans economy through Operation Phakisa, and to support all small-scale mining projects.

There are current regulatory frameworks that place an obligation on mining companies to convert, to upgrade hostels into family units and facilitate home ownership. This is the ANC’s policy for a better life for all, and it is important that families live together for a better understanding.

In order to improve on its licencing mandate through transformation, the SA Mineral Resources Administration System must be able to deal with the beneficiation of ordinary South Africans, in particular, those who have been historically disadvantaged. South Africa is a country that has a bad historical past, where the majority were denied participation in the economy, in particular, mining, except for labour under inhumane conditions. We also want to appeal to the department not to delay the issue of women in the mining strategy.
In terms of the economic benefits of shale gas, shale gas has the potential to contribute significantly to the envisaged accelerated, inclusive, and sustainable economic growth if mining is managed with care, with an understanding of the environment, and to the benefit of communities. As regards electricity generation through shale gas, it is calculated that 30 Tcf, or trillion cubic feet, of shale gas is enough to meet half of the country’s current electricity generation requirements for over 20 years.

The gas-to-liquids, GTL, resource can be used on the conversion to meet the country’s demand for domestic consumption. Its cost- competitive advantage is that it provides a potential source of cost-competitive energy advantage analogous to the United States of America. There, energy costs have dropped considerably since the development of shale gas, with the country projected to become a net energy producer by 2020. Regarding employment, the development of the resource has the potential to create employment opportunities directly and through leverage linkages.

The Mossgas gas-to-liquids projects created approximately 1 600 job opportunities from the developing of the 1 Tcf gas reserves. Side- stream inputs and downstream linkages have the potential to develop associated jobs in respect of the localisation of capital goods, consumables, and infrastructure development. The development of this resource will also contribute considerable revenue to the nation’s
fiscus, as it is estimated that a resource of 30 Tcf will yield a sale of over R1 trillion.

Government’s focus over the medium term is very clearly set out in the President’s Nine-Point Plan, in which numerous aspects apply to the mining sector. Some of these are the promise of financial assistance to Eskom to deal with the lack of electricity power; downstream beneficiation of our mineral wealth; encouraging private sector investment; and moderating workplace conflict.

The first pilot project of Operation Phakisa included promoting the offshore oil and gas sector. However, the President has announced government’s intention to roll out into the mining sector, as a whole. Government has announced a significant shift to gas as an energy source, initially procuring 2 400 MW of new gas-fired generation capacity from independent power producers, IPPs. This commitment obviously bodes well for the potential oil and gas sectors of this country, including the shale gas sector.

The ANC-led government has taken a number of positive steps in the past financial year in order to promote the sustainability and development of the mining sector. This includes, in 2014, the President taking charge of the implementation of the Framework Agreement for a Sustainable Mining Industry. The agreement includes labour, business, and government. The positive influence of this effect can be seen in the return of relative calm in the mining
industry since the resolution of the platinum strike. Government is also making progress in allocating resources to revitalise distressed mining towns and improve housing options for mine workers.

We support Budget Vote 39 and Budget Vote 29. I thank you. [Applause.]

Cllr B FORTEIN (Salga): Hon Chairperson, Hon Ministers, Deputy Ministers, Deputy Chair of the NCOP, hon members, ladies and gentlemen, and guests, the Minister of Rural Development and Land Reform, during his delivery of the budget speech in the National Assembly, fittingly cited the commemoration of the adoption of the Constitution of the Republic of South Africa, as this corresponded with the date of the delivery of his speech. He, similarly, highlighted the 60-year mark of the adoption of the Freedom Charter. These historic milestones have anchored South African politics and serve as a trial guide. They allowed the imagination of a desired future and the ability to reflect on a journey that we have undertaken to reach that desired reality for all South Africans. The responsibility to create that future rests largely on the state, driven, however, by the will of the people.

In consideration of the department’s Budget Vote, we welcome the development of the Rural Economy Transformation Model, not only as an approach to reach the targets of the National Development Plan,
but also in the realisation of the role that Agri-parks can play in increasing food production and attaining major, rural economic transformation. We welcome the emphasis in the Budget Vote of the allocation of R2 billion going towards institutional and capacity development, and/or skills acquisition, especially at a municipal level.

Our only concern is the extent to which these translate to sustainable capacity-building and the performance at a municipal level.

The SA Local Government Association would like to work closely with the Minister to realise the enhanced capacity of municipalities. We also trust that the Agri-parks will be integrated into many other similar concepts, such as agri-villages and agricultural hubs, which are already being implemented in some municipalities. This will ensure that there is no duplication of efforts and resources.

On the Spatial Planning and Land Use Management Act, we agree with the Minister. The Act should not be viewed in isolation. It should also be viewed in conjunction with the Integrated Urban Development Framework. In order to redress the inherited complexities of colonial and apartheid spatial planning, there are systematic issues that require all spheres of government to work together. The major constraint is the intergovernmental relations domain, although it is legislated.
There are, however, challenges regarding the ability of sector departments and municipalities to meaningfully engage in joint planning, focused investment, and collective implementation. Spatial planning on its own cannot achieve spatial transformation, though it has a central role to play. Spatial transformation is a combination of various aspects that include economic, social, and political will.

The Spatial Planning and Land Use Management Act is scheduled to come into effect on 1 July 2015, and Salga confirms its commitment to continue working closely with the department to ensure that all municipalities have the necessary systems in place to implement the legislation. We look forward to making constructive input into the legislation and policy development process in any legislation that has a bearing on the municipalities. The involvement of Salga at an early stage will assist in ensuring that municipalities make a meaningful contribution to the policy and legislative proposals that have a bearing on their areas of functional competence.

While it is essential to optimise the mining sector and leverage the economic benefits thereof, we need to bear in mind that the existence of mines has a significant impact on municipal planning on all levels. Mining activity brings with it issues such as the influx of migrant labour, the proliferation of informal settlements, and rapidly expanding needs for basic services and housing.
These are major challenges for local governments and have been known to lead to public discontent and protest action at a local level. It is therefore essential, through joint effort, to reconcile the objectives and practicalities of mining legislation with municipal integrated development and land use systems. The latter will serve as an enabler to the effective administration of social and labour plans as enablers of sustainable economies. I thank you. [Applause.]


LWEZOMHLABA (Mnu M Skwatsha): Sekela Sihlalo; abahloniphekileyo abaPhathiswa bethu bobathathu, ukuqala kuMnu Gugile Nkwinti, Mnu Ngoako Ramatlhodi noNks Joemat-Pettersson; amaSekela Baphathiswa, uMajola noMashego-Dlamini; neendwalutho zonke ezikhoyo apha, umlisela nomthinjana ndiyanibulisa. Le yinyanga ebuhlungu yeSilimela, inyanga yegazi iphinde kananjalo ibe yinyanga yokugcoba. Ndikhumbula into yokuba ... (Translation of isiXhosa paragraph follows.)


Skwatsha): Hon Deputy Chairperson; our three hon Ministers, firstly, Mr Gugile Nkwinti, Mr Ngoako Ramatlhodi, and Ms Joemat-Pettersson; the hon Deputy Ministers, the hon Majola and the hon Mashego- Dlamini; and distinguished guests present here, youth, greetings.
This is June, a painful month, a month of blood and a month of happiness. I remember that ...]
... dispossession and the colonial conquest was a very painful period. It has now become fashionable to only refer to 16 June1976. I am reminded of the Pondoland revolt of 1960. This process of dispossession has been a very painful one. Having said that ...

... ndingatsho Mphathiswa ukuba iSebe lezoPhuhliso lwamaPhandle noHlengahlengiso lwezoMhlaba olukhokelwa ngohloniphekileyo uNkwinti liyaqhuba. [... I can say that, hon Minister, the Department of Rural Development and Land Reform, led by the hon Nkwinti, continues with its job.]

If I consider the fact that two days from now, it will be 25 June and recall that 60 years ago, on 25 and 26 June, in Kliptown, our people declared South Africa as belonging to all who live in it ...

... ndingatsho ndingathandabuzi Mphathiswa, ndithi ooZ K Matthews, Helen Joseph, Lillian Ngoyi, Billy Nair no-Oliver Tambo xa bekujonga uxakeke ngulo msebenzi uwenzayo wokuphumeza amaphupho abo, batsho bathi, lo ngunyana wethu oyintanda, esikholisekileyo nguye, mlandeleni yena. [Kwaqhwatywa.] (Translation of isiXhosa paragraph follows.)

[... I can say without hesitation, hon Minister, that when Z K Matthews, Helen Joseph, Lillian Ngoyi, Billy Nair, and Oliver Tambo look at you, busy with the job of making their dreams come true,
they will say, This is our lovely son whom we have chosen. Follow him. [Applause.]]

Central to the work of this department is the National Development Plan. Land is key to ensuring that the long, sad story of colonialism and apartheid in our country ultimately has a happy ending. The National Development Plan, which has been endorsed by the majority of the parties in our country, is the guide to 2030. Chapter 6 of the NDP states “an integrated and inclusive rural economy” is the goal that we pursue. I am making this point because I want to emphasise the consistency of the ANC-led government, looking at the ball, concentrating on the ball, and not being diverted at all.

Some other parties speak A and act B. I am always reminded of ... having listened to the current leader of the DA when he speaks about the NDP and emphasises the fact that he does not support everything that the NDP states. Immediately, after having listened to that, I am also reminded of the former leader of the DA, currently still the Premier of the Western Cape, who was so emphatic that it’s the NDP and nothing else. Contradiction between two leaders: You won’t find that in the ruling party. [Interjections.] It appears that the opposition cannot decide whether they support the NDP, or not. The sooner they make up their minds, the better for our country.
For the current 2015-16 financial year, the department intends acquiring 208 350 hectares at a cost of R1,253 billion. Of this, R141,19 million will be spent on acquiring land for farm dwellers and R132,19 million for labour tenants. The intention of land acquisition is to recreate the class of black commercial farmers which was deliberately destroyed by the 1913 Natives Land Act and similar colonial and apartheid laws.

Our President, in his state of the nation address, outlined the Nine-Point Plan to ignite growth and create jobs. The second of the nine points is revitalising agriculture and the agro-processing value chain. This is the context in which the department is implementing and refining the Recapitalisation and Development Programme, launched in 2010, with the following objectives: increasing agricultural production, guaranteeing food security, graduating small farmers into commercial farmers, and creating employment opportunities in the agricultural sector.

Since the inception of this programme, R3,2 billion has been spent on recapitalisation. Much attention has also been given to ensuring that we make well-considered decisions on the selection of farms to be acquired and the beneficiaries of allocated farms, as well as which farms to recapitalise.

The National Land Allocation and Recapitalisation Control Committee was established in 2013 to ensure that land reform proposals for
acquisition, allocation, recapitalisation, and development are consistent with government policy - and to ensure interdepartmental co-ordination, co-operation, and budgetary alignment.

We intend to put what we have learned from the land acquisition and Recapitalisation and Development Programme to good use when we establish, as we are doing now, the Agri-parks. This afternoon, we have heard how many of us have been emphasising the issue of Agri- parks, a very, very important aspect of our work as we make sure that we really ensure that poverty is a thing of the past in our rural areas.

Money will also be allocated for the production of key commodities identified in the Agricultural Policy Action Plan, Apap, for the Agri-parks by rural producers outside of the land reform farms. This includes rural, village-based producers and owners of their own land. As everybody can see, the work of the Agri-parks is under way.

We are also acting on another NDP proposal, the creation of what we call district land reform committees, DLRCs. These will be responsible for identifying 20% of the commercial agricultural land in the district and giving commercial farmers the option of assisting its transfer to black farmers. In our Budget Vote debate last year, we said we would establish these committees. We are pleased to report that so far, in fact, we are certain that by the
end of July this year – not next year - we will have established the DLRCs in all 44 districts.

In order to implement the NDP’s recommendations, these committees will identify farms suitable for acquisition by government; advise our Minister on the strategic support needs of such farms; identify and interview potential candidates for farm allocation; and advise the Minister of the strategic support needs of recommended candidates. The department wants to ensure that these committees are representative of all key interest groups, including organisations of established farmers. The Minister’s responsibility will also be to appoint a chairperson after a recommendation from the DLRCs.

Members of the NCOP and the public are called upon to monitor the work of these important committees. Let us also take ownership on the implementation of the National Development Plan.

In the current year, we will implement new guidelines for the selection of beneficiaries. These emerged from discussions at the National Land Tenure Summit, held in September, which recommended that credible processes be put in place to identify and select emerging farmers deserving of support.

The point here is that these pronouncements by our Minister, which are regarded by our detractors as irresponsible, are only intended to take us forward. In fact, in September, we started with wide
consultation. We did not stop there. We went in March and, again, in May this year.

It’s a pity that the hon member from the DA - I don’t see him here anymore - availed himself to attend that particular summit in May and kept quiet for the whole day when South Africa was talking. I may just want to tell him that those were not dreams. There are people, particularly, white farmers, who have embraced the 50/50 policy framework that is advocated. Those are people who are looking into taking South Africa forward. It’s not a dream. It’s happening. We are speaking about something that is real.

Beneficiaries should have the ability, passion, and commitment to farm. The following categories will apply. In category A, communal and village subsistence farmers, municipal commonage farmers, and sustained homestead garden producers. In category B, agricultural sciences university and college graduates, agribusiness special course qualifiers, including Narysec participants. In category C - a special category - women, including single women, military veterans, people with disabilities, and farm workers, dwellers, and tenants.
Siyaqhuba, Mphathiswa. [We are moving forward, hon Minister.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): As you conclude, hon Deputy Minister ...
Skwatsha): Oh! [Laughter.] Alright. I just wanted to say that on the land claims, hon Deputy Chair, even there, you know that we have now stretched out and we are going to the deep, rural areas. In fact, our Minister, just a few days ago, went to Ebenhaeser to make sure that the settlements of the claims there are taken forward. I thank you very much. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Thank you very much, hon Deputy Minister. As we proceed, hon members, I must confess it’s very painful to have to stop members from concluding their speeches. There is a clock there. Just observe that clock. [Interjections.] If it is not working, then bring that to my attention so that it gets sorted out. [Interjections.] Alright.

Ms C LABUSCHAGNE: Hon Deputy Chair, hon Ministers and hon members, South Africa has one of the richest, most diverse, and most valuable mineral wealth deposits in the world. These are commodities that cannot be taken for granted. Therefore, the hon Minister should take its policy development, a sound regulatory environment, and investment into mining seriously.

A total of 81%, or R4,1 billion, of the department’s budget is focused on enforcing compliance with legislation and promoting sustainable resource use and management over the medium term. The department plans to monitor and enforce compliance with the Mineral
and Petroleum Resources Development Act of 2002 and the Broad-Based Socioeconomic Empowerment Charter for the South African Mining and Minerals Industry. The plan is to conduct 550 legal compliance inspections and 5 100 environmental management inspections over the medium term.

The department will continue doing research and advocacy work on hydraulic fracturing in preparation for licensing shale gas exploration and monitoring compliance with regulations once exploration starts. An additional amount of R108 million is granted for this work over the medium term.

Shale gas exploration is expected to contribute to economic growth and job creation. The DA is still urging the department to prove that the impact of fracking is thoroughly investigated and that the now published regulations will ensure that fracking, in South Africa’s history, will be seen as a major economic positive instead of an environmental dilemma with long-lasting effects on future generations.

The DA welcomes the target of a 20% reduction in occupational fatalities and injuries and a 10% reduction in occupational diseases.

The government’s 2014-19 Medium-Term Strategic Framework advocates for the protection and enhancement of environmental assets and
natural resources. The department aims to rehabilitate 150 derelict and ownerless mines and limit the flow of acid mine water into the environment. These are much-needed interventions to protect our scarce water resources from pollution, and to prevent illnesses and loss of agricultural activities in mining areas.

However, a big concern is the increase of 23,1% in expenditure for consultants and professional services to support the technical expertise needed for rehabilitation work. We call on the Minister to ensure that mining companies comply with rehabilitation plans and budgets accordingly, as prescribed, in order to prevent the situation from escalating in future.

Furthermore, the department aims to improve the participation of historically disadvantaged South Africans in the mining sector by granting a total of 600 mining rights and permits to historically disadvantaged South Africans, over the medium term. However, the challenge remains to ensure that the mining right or permit has been taken up by the same person to whom the prospecting right was granted.

The DA believes that small-scale and informal mining should be encouraged, legalised, and professionalised to promote entrepreneurship, self-development, and wider participation across the mining industry. We thus welcome the plan to support 240 small- scale mining projects.
Through the Mineral Policy and Promotion programme, 53,8% of the department’s budget is being spent to attract investment through promoting South Africa’s mining and petroleum sectors. The irony, however, is that since the promulgation of the Mineral and Petroleum Resources Development Act in 2002, South Africa’s mining has entered a period of uncertainty and a subsequent decline in confidence. The government purports to understand the importance of mining as a means to power economic growth and job creation, yet policy uncertainty has been shown to contribute to underinvestment in this sector.

Competition for capital from investors is fierce and they have raised their hurdle rates due to a tough global economy. The hon Minister must be conscious of South Africa’s global standing and positioning as a contributor to the international economy. However, is our government doing enough to attract more investment opportunities and guarantee a sustainable future for mining in South Africa?

Unfortunately, very little of freedom, fairness, and opportunities for all can be seen in the way the government is talking up the prospects of mining, while rules were imposed that will ensure that it does not grow. At times, government has been openly hostile to owners and potential investors, resulting in them looking to other destinations for their investments.
Mining currently accounts for some 60% of exports by value and is thus vital to the health of this country’s balance of payments. The DA views minerals as a natural resource that should be exploited to the maximum advantage of all the people of this country. To ensure that the exploitation of the resources benefits the country and its people, we must attract capital investment, both from inside and outside the country, by offering favourable rates of return. Once again, for the mining sector to be the key driver of economic growth and investment, the DA believes that this sector requires policy certainty, and an efficient and predictable regulatory environment.

The thicket of laws surrounding the possession and trade in diamonds should be reduced. South Africa should be a centre of diamond trading, cutting, and polishing by making these activities easier to conduct. Taxation changes can encourage all activities, from prospecting to diamond beneficiation. A percentage of royalty taxes should be used for the benefit of local communities where mining takes place.

The DA would streamline empowerment requirements for the mining sector. This would be achieved by replacing the multitude of requirements in the Mining Charter and the social labour plans required by the Mineral and Petroleum Resources Development Act with the empowerment code for mining that is aligned with the Broad-Based Black Economic Empowerment, BBBEE, Codes of Good Practice. The sectoral empowerment code for mining and the BBBEE Codes would be
simplified and aligned with national policy objectives in terms of job creation, skills development, and small business development. The regulatory environment should not only be designed for existing mines, but also look into accommodating exploration, junior companies, and entrepreneurs.

I suggest that the Minister contemplate these proposals before legislation and the rules of the mining sector in our country become the drivers of investment, economic growth, and jobs in other countries, instead of in our own country.

In conclusion, perhaps the hon Minister Ramatlhodi would be so kind as to enlighten us today on the grey water agreement in the Mogalakwena district, where he mysteriously landed a R20 million share in the PPL Anglo American Platinum mine for his wife. I thank you.

Mr M KHAWULA: Hon Deputy Chairperson, hon Ministers, hon Deputy Ministers, if you want to start a war with Africans, you tamper with one of their three precious attachments. The first one is land, the second one is livestock, and the third one is women. [Interjections.]

An HON MEMBER: Ja! Daar’s hy! [Yes! That’s it!] [Interjections.] [Laughter.]
Mr M KHAWULA: In 2014, the Minister introduced the Restitution of Land Rights Amendment Act, which was signed into law in June 2014. The IFP fully supported this amendment because we thought it was going to put some speed into resolving outstanding matters on land reform. The Minister further promised that mobile offices were going to be deployed throughout the rural areas of the country to assist the claimants in properly lodging the new claims. Hon Minister, this has not yet unfolded effectively. The process is still the same as what it was prior to the amendment of the Act.

The challenges pertaining to land reform are, indeed, compounded. The government’s slow pace on the land restitution programme, the 50/50 farmland ownership proposal by the President, and the announcement by the President that foreign acquisition of land will be limited to leasehold all add confusion to the already compounded situation. Whilst not all these may have been misguided or misdirected, the problem is thinking out loud and not converting the same thinking out loud to proper, clear policy directives.

The IFP is very clear about what needs to happen on the issue of land reform. It is for this reason that at the dawn of democracy in 1994, the KwaZulu Ingonyama Trust Act was proclaimed by the erstwhile KwaZulu government. This was meant to entrench KwaZulu land ownership forever in the hands and through the guidance of the Zulu King and his subjects.
Land was illegally taken away from rightful owners. Therefore, proper and guided land reform must be initiated, but all these processes must take their course within the bounds of the rule of law. We are not a lawless society. Hence, the country cannot afford to let these processes deteriorate into a state of lawlessness.

The problem is that the rule of law cannot pick and choose in the way that government is doing today. At the present moment, the rule of law applies when it suits government to do so, and sometimes does not apply when it does not suit government to do so. This kind of behaviour then spills down to the general behaviour in respect of the rule of law and disrespect thereof by the general populace.

Last time, I appealed to the Minister to collaborate with amakhosi [chiefs] in the rural areas in order to tackle rural development. Rural communities do have land available, especially for food security, intended for self-sustainability. However, things have changed these days. Climate change has brought with it new challenges to the way of doing things. Without the help and support of government, rural communities are not able to use the land effectively to ensure self-sustainability for food security for their families, which used to happen some years ago, with very minimal or no government support at all.

Umhlaba, mhlonishwa, omunye owathathwa ezandleni zamakhosi; uma seniwubuyisa nakha ama-trust. Lokhu kuyayiqhatha imiphakathi
yasemakhaya ngoba umhlaba wawuthathwe ezandleni zamakhosi, kodwa uma seniwubuyisa ... (Translation of isiZulu paragraph follows.)

[Hon Minister, land is one of the things that were taken from the hands of the chiefs, but when you return it, you set up trusts. This causes conflicts amongst the rural communities because the land must be returned into the hands of the chiefs ...]

... you create fiefdoms and kingdoms, and that is a problem. If land was taken from the hands of amakhosi [chiefs], it must be returned into the hands of amakhosi [chiefs]. Hon Minister, you must improve the record of land restitution.

Advocate, let me turn to your department. The same old stories need to be kept on being repeated when it comes to our mineral resources on the continent until effective changes take place. Africa’s mineral resources have continued to benefit people outside the continent more than they benefit people on the continent.
Beneficiation programmes need to be fast-tracked in order to deal with this anomaly.

For example, it is a shame that even the majority shareholding in the SA Reserve Bank belongs to a German family. In other words, as a country, we have a bank which we control by statute, but technically, it is remote-controlled from Europe! This is absurd, to say the least. I am just giving one example.
The rural communities of our country continue to be plagued by the activities of illegal sand mining, with no attention from government on this subject. I reported this to the hon Deputy Minister last year and appeal, once more, for attention to be directed to this issue.

South Africa, like many of the countries of our continent, is blessed with an abundance of mineral resources. However, these are not properly used to the maximum benefit of the inhabitants of our continent. Even where transformation has taken place in respect of our mineral resources, this has been coupled with greed, nepotism, and favouritism. As a result of this, some of the industries have had to close shop, to the detriment of our workforce, which is predominantly black South Africans. Poor management of our mineral resources must be dealt with. I thank you, Deputy Chairperson.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Thank you very much. I, in actual fact, expected an objection to or a point of order on the third aspect. It cannot be that African women are seen as possessions of African men, but members remained quiet. I was looking at members to rise on a point of order, but it is now on record that this Parliament does not ... [Interjections.] Alright.

Mr M KHAWULA: Hon Chairperson, on a point of correction, I did not use the word “possession”. I was very careful to say “attachment”, not “possession”.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): It makes it even worse! [Interjections.]

Mnu L B GAEHLER: Sekela Sihlalo, amadoda aya kuthi cwaka. Anezinto zawo amadoda. Akukho ndoda ihleli nenkosikazi enye. Usibona sithe cwaka nje; sinezinto zethu. Onke amadoda antsundu anjalo.
Asinakungxola ke, Mhlekazi. (Translation of isiXhosa paragraph follows.)

[Mr L B GAEHLER: Deputy Chairperson, men will keep quiet. They have their secrets. There is no man who survives with one wife. We have our own secrets, and that is why we are quiet. All African men are like that. Therefore, we can’t make a noise, Sir.]

Hon Deputy Chairperson, Ministers, Deputy Ministers and members, the strategic plan and budget of the Department of Mineral Resources needs be revisited so that all the mandates of the department are attended to during the current financial year. This includes the revision of the Precious Metals Act, the Diamonds Act, and others.

The integration and finalisation of the South African mineral resources database is an urgent matter. Continued delay in this area makes it very difficult for the historically disadvantaged people - underline historically disadvantaged people, not certain people or selected people - of this country to benefit from its mineral resources.
Further, the targets of the current administration, elaborated on during the state of nation address, will be a far-fetched dream. Indeed, the annual performance plan of the department can never be complete without a very clear and aggressive strategy on women and youth in mining. These strategies should cover both areas of direct participation and ownership, as well as the need to protect their rights at work. The gold sector wage negotiations should be looked at with interest so that they are managed properly and they avoid a repetition of the platinum mine experience.

We appeal to the department to assist the mine workers who have left their jobs due to illness to receive their benefits. This is a very sorry state in the rural areas, where people die without receiving their benefits.

We welcome the Minister’s announcement with regard to settlement of the 1998 Baziya land claim. We are certain that the resolution of this matter will lead to an unprecedented economic boom in the area of the King Sabata Dalindyebo Local Municipality.

However, we are equally concerned about the lack of progress with regard to the Highbury Timber, KwaLindile and Payne Farm settlement. Hon Minister, these beneficiaries have been waiting for over 17 years. Worst of all, if you talk about Highbury Timber, 45 beneficiaries were verified in the time of Deputy Minister Nxesi. To date, they have not been paid out, and some of them are dying. We
urge you to use your leadership to settle this claim, once and for all. Yes, we are very clear that these communities are fighting, but we need to come up with a solution to assist the people.

We always guard against limiting the scope of rural development to agriculture when, in fact, it covers a whole range of sectors that directly address the socioeconomic development of our community. In this regard, the strategic plan of the department is welcomed. There is a need to draw clear lines between the functions of the Department of Rural Development and those of the Department of Agriculture. This gives more importance seeing that, at provincial level, these departments are placed under one executive authority.

The formation of Agri-parks is welcomed. We welcome the one in Ncora, but it is still not at its full potential and we request the department to plough more money into these. We hope that this is not going to be another white elephant, like Magwa and Majola Tea Estate. We urge you to plough in more and do more for our people.

The UDM welcomes the 50/50 agricultural land policy. However, we are concerned because the President, in his state of the nation address, was talking of all the land. Now, all of a sudden, you talk of agricultural land. Chairperson, hon Minister ...

... kunzima kwezinye iindawo ukuba umntu ontsundu athenge indlu. Nakule ndawo ndikuyo kunzima. Masiyijonge loo nto leyo.
Ngowe-1964 ititshala yoMlungu yayikwazi ukuthenga indlu. Kutheni ngoku xa kuphethe urhulumente wethu kunzima ukuba abantu bakuthi bathenge umhlaba? Ibalulekile le nto mama uWana. Ningafane nje nibengathi niyayiphepha kodwa ibaluleke kakhulu. Abantu bethu nabo bayayifuna imihlaba. Bayafuna ukuthenga izindlu ezidolophini.
Bayafuna ukuthenga izindlu kwiindawo ezisemanxwemeni olwandle. Kule mihla, abantu abantsundu xa befuna ukwakha kwiindawo, phaya ezilalini, ezisemanxwemeni aselwandle kuthiwa kufuneka umntu akhe kumgama wekhilomitha ukusuka elwandle. (Translation of isiXhosa paragraphs follows.)

[... it is difficult in other places for a black person to buy a house. Even where I am, it is difficult. We need to address this carefully.

In 1964, a white teacher could buy a house. Why is it difficult for our people to buy land when our government is in power? Mama Wana, this is important. You can deny it, but it is very important. Our people also need land. They would like to buy houses in urban areas. They would like to buy houses next to the sea. Nowadays, when black people want to build houses in the villages next to the sea, they are told to build at a distance of a kilometre from the sea.]

Why is it, in our government? We need to address these issues. Thank you.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Deputy Chairperson, Ministers, Deputy Ministers, special delegates, Salga, distinguished guests, ladies and gentlemen, sometimes it is challenge when you happen to have a party that is represented by more than five people in this august House. However, every time we debate, we hardly get even a single person. If you are going to have one, it would be very fortunate for that person to be in the House for 10 minutes. Yet, those people would come here and make declarations of vote. I hope South Africans are watching. [Interjections.]

South Africa has launched a new charter to facilitate the sustainable transformation and development of its mining industry which emphasises the target of 26% black ownership of the country’s mining assets. It is imperative that we do not underestimate redressing historical and social inequalities, as stated by the Constitution of South Africa. The policy objectives stated in the Mineral and Petroleum Resources Development Bill are to expand opportunities for historically disadvantaged persons to enter the mining and mineral industry.

Our sons and daughters must benefit without shame from the exploitation of the nation’s mineral resources. It cannot be that our generations suffer the same struggle suffered by our forefathers.
We are aware of the department’s intention to deal with the scarcity of relevant skills, as this has been identified as one of the barriers to entry into the mining sector by historically disadvantaged South Africans. Sadly, to date, some continue to be disadvantaged.

In appreciating the strides that this country has made, we note the commitment by the department to re-engineer new and guiding transformational policies which, for a long time, never existed - or where they did, they preferred certain people over others. I refer to the Mine Health and Safety Amendment Bill, which will serve before our committees. We look forward to programmes such as the Mining Phakisa, which our hon President J G Zuma referred to in his state of the nation address. The Mining Phakisa will be convened to deliver fast and implementable results to the country’s development priorities.

The racial ownership pattern of the country’s mining assets has remained largely unchanged. According to the assessment that was made in previous years, it became evident that white men and women dominated top management and technical positions in South Africa’s mining industry. As if that were not enough, they earned much more than their black counterparts, regardless of skills and experience. Unfortunately, this is the history that we have inherited, and some of us pretend as if things have always been rosy.
The Mining Charter makes provision for the complete elimination of hostels on South Africa’s mines by 2015, and introduces a sustainable element premised on the understanding that the social licence to operate includes environmental health and safety performance.

For years, the mining companies have bullied their workers with the strict bottom line and overproduction that drove prices down in the first place. While we are cognisant of the many challenges that have become characteristic of the South African operating environment, we also acknowledge that local mining companies have learned to be adaptable and proactive when dealing with such programmes of survival.

Hon Minister, we applaud the role played by your department in addressing the plight of ex-mine workers in our respective provinces. As the House that represents the interests of provinces, we will always appreciate that whenever you call it - whether you term it imbizo or something else - we are made aware so that we can come and be constructive and give credit where it’s due.

Allow me to quote Amílcar Cabral:

Always bear in mind that the people are not fighting for ideas, for the things in anyone’s head. They are fighting to win material
benefits, to live better and in peace, to see their lives go forward, to guarantee the future of their children.

Let me be upfront and commend the Minister and his Deputies for the successful land summits that we were invited to. The outcome of the summits was clear confirmation that land is, indeed, a very emotive issue. It would be in order for our current generation to understand that land belongs to many that passed on, very few that are living, and very many that are still to be born.

As a permanent delegate representing Mpumalanga, I can speak with confidence, as I am from the Kasiboshwa community in the Nkomazi Local Municipality, the community that was dispossessed in Tenbosch. We applaud the role played by your department because that land has been restored back to that community.

Of course, there will always be challenges, but when they are telling ... Because we have people that survived what happened in 1954, you realise that we still have a challenge in addressing some of those. Others will come here and show us pictures, as if we are playing or we want to make a movie.

Allow me to use a book that was given to us. All of us claim that, at all times, we will pay allegiance to it. I will link it to what was said by the hon Skwatsha when he was dealing with the National Development Plan. The book that all of us always carry ... I wanted
to use the copy belonging to my friend, the hon member next to me, but unfortunately, he could not give it to me, because, as I read, you might think that I am adding, but I wanted to read from the hon member’s book. We all have the book. [Interjections.] I would be happy to have yours.

Let me quote the book as it states:

We, the people of South Africa,


Recognise the injustices of our past;

Honour those who suffered for justice and freedom in our land;


Respect those who have worked to build and develop our country; and

Believe that South Africa belongs to all who live in it, united in our diversity.

We therefore, through our freely elected representatives, adopt this Constitution as the supreme law of the Republic so as to –

* Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;
* Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;

* Improve the quality of life of all citizens and free the potential of each person; and

* Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.

May God protect our people.



That book is the Constitution of the Republic of South Africa. Are we, as members, honest to the preamble or are we just selective? [Interjections.] I challenge members: Let us not dare be selective when dealing with the Constitution, as the Deputy Minister Skwatsha quite correctly exposed some leadership of political parties’ serious contradictions when it comes to the NDP.

When we say we support Budget Vote 29: Mineral Resources and Budget Vote 39: Rural Development and Land Reform, we are not doing it because it is fashionable. We are doing it because we are trying to respond to the challenges that have been identified and clearly
stated in our preamble. When we say we want to honour those who suffered for justice and freedom in our land, let us, at all times, as members, ask ourselves, What does that mean? That will assist us.

To both departments, hon Ministers, and Deputy Ministers ...


Ngesintfu sakitsi kutsiwa, Nome ungayitfola inja igula kangakanani ngeke iyisukele imoto lemile iyikhonkhotse. Tikhonkhotsa lehambako. Ngiyabonga. [Tandla.] [In my language they say, Even if you find a very sick dog, it will never bark at a stationary car. They only bark at a moving one. Thank you. [Applause.]]


I wish to thank profusely all the hon members for their contributions, including those who saw matters differently.

The hon Sefako mentioned the 50/50 issue. There is a very interesting farmer, one Jonathan Bradfield, who owns a processing plant and a pineapple farm. He is offering 25% of the land where he grows pineapples, and 25% of the processing plant in the 50/50 concept. He is one of many who are celebrating this.

There is a disjuncture between the organisations and the members of the farming community. In terms of the ordinary farmer, we have more than 50 proposals in terms of the 50/50 policy framework. So, we are very, very excited about this.
As for the Agri-parks and co-operatives, thank you very much, hon Parkies. I think the question of seeds is critical. Thank you for that.

We have gone beyond the cut-off date of 1913. The President pronounced on this two years ago. We are working on the exceptions to the 1913 cut-off date for the Khoi and the San. Actually, the Khoi and the San are more advanced in policy development on the exceptions to the 1913 cut-off date, honourable EFF. We are working on the historical landmarks and heritage sites. It is going beyond the cut-off date of 1913.

Mr V E MTILENI: Deputy Chair, I rise on a point of order: I would just like to caution the Minister. [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Order, hon members!


Mr V E MTILENI: I rise on a point of correction. I am not the “honourable EFF”. I am the hon Mtileni.

The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): No, no, no. That is
not a point of order. [Laughter.] But you know, hon members ...

Mr V E MTILENI: This is very serious. [Interjections.] I want the Minister to know that ...
The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): No, no, no, hon
Mtileni. Just take your seat, please. [Interjections.] Hon Mtileni! Can you take your seat? Thank you. That’s not a point of order.
Proceed, hon Minister.


change, mentioned by the hon member from the DA, it is true. The Animal and Veld Management Programme actually deals with this question. We have got a programme for that. I don’t want to go into the details, but that is the programme. You’re correct, and we’re working on that.

Thank you very much, Salga. The Spatial Planning and Land Use Management Act is such a critical piece of legislation. The challenge there is that you’ve got modernity and postfeudal tensions there, which we are managing. So, it’s true. Thank you very much for offering to be part of that.

As for the lodgement, hon Khawula, it is actually happening. There are two mobile buses dealing with KwaZulu-Natal and the Eastern Cape – four in all for the country. It’s coming! It has already started. In actual fact, more than 70% of the total for the last five years, the previous window, have been lodged already. This all has to do with the mobile buses.
The last comment is this. How does one explain the fact that – I have been trying to do this – one has an ultra-right DA and an ultra-left EFF, yet, every time they debate, they come to the same conclusions? [Interjections.] How does this work?

An HON MEMBER: Opposites attract!


an ultra-right! [Interjections.] They come to the same conclusion. How does it work? I think we need some kind of theorisation on this. [Interjections.]

You know, in the apartheid Parliament, there used to be a party called the Conservative Party, led by one Dr Treurnicht. He was a breakaway from the National Party. He opposed everything that the National Party was doing – even good things. As a result, this leader earned the title, “Dr No”. We are seeing a reincarnation of Dr No here, in our Parliament, with the EFF, the breakaway party from the ANC, the governing party. They oppose everything the ANC says, no matter what! [Interjections.]

You know, you have been listening to the ringing of the bells in the National Assembly. They have a sign that says, “Divide! Divide!” Every time one puts anything – you know, we are going to go back to the National Assembly now. Listen to the bells there. It is they, who oppose everything the ANC does, no matter how good it is. They
are actually becoming a reincarnation of the Conservative Party of Dr Treurnicht of the past. Thank you very much. [Applause.]

The MINISTER OF MINERAL RESOURCES: Deputy Chairperson, I think the answer to your question, Minister Nkwinti, lies in the fact that the shape of the earth is round. If one person moves to the west and another to the east, they’ll eventually meet. [Laughter.] I’ll pass that.

I want to welcome all the contributions that were made. Let me say to the hon Mtileni, my homeboy from Limpopo, we did not murder the people in Marikana. Anyway, that matter is sub judice. The report concerning the matter will be coming out and we will be told what to do, going forward, in order to avoid a recurrence of that unfortunate situation. Marikana should not be celebrated, although there may be some amongst us who do so.

I think we are doing fine in terms of mining safety, reducing fatalities. We are on a good course in comparison to the previous fatalities that were there under apartheid, such as the example I gave in my input.

I want to move to the next question, which was asked by the hon Labuschagne on policy certainty. We definitely understand the need to do that and as a matter of urgency. It’s not that there is no law that is applicable, as we speak. The laws that seek to repeal are
still applicable. The Constitution of the Republic is also justiciable. With relevant Acts, both policies and administrative Acts are justiciable.

In a sense, the debate about policy certainty sometimes tends to be a bit exaggerated, in my view. I explain this to investors all the time, as I did yesterday at lunchtime, in a meeting I had at the Table Bay Hotel, with those who put money in the mines here in South Africa. I explained the process and how far we are in terms of seeking to put the Mineral and Petroleum Resources Development Act to bed. As legislation, it has gone through the processes. It is with the NCOP and the department will be assisting, in that regard.

Concerning the issue of the R20 million shares, if you are a public representative, you can’t have some ghosts and keep some skeletons in your closet. The truth is that the shares are there and they are in my previous wife’s name. They are subject to the legal processes of disposal. So, there is nothing that we are hiding anywhere. I say this because the impression is that we are not telling the truth about the shares. They are there and they were legally acquired.
They exist. I want to confirm that they are there. [Interjections.] Right.

I also want to deal with the attitude towards the investors. We are not hostile towards investors. I do a lot of work promoting investment in the Republic. The best thing that we do in order to
promote investment is to tell investors the truth, whether they like it, or not. So, your 26% issue is a major issue for debate wherever I go in the world. What I tell them is that there is a rational basis for that decision. We cannot allow a situation where whites continue to own the minerals even as we’ve separated them from the land. This is what the Constitution did in 1994.

Now, Cde Minister Nkwinti is battling with 1994 land ownership issues, but we were able to remove the minerals from the land and put them under state ownership so that we could access those minerals. So, 26% is the beginning of that process. When you tell the people the truth, they understand. Don’t try and sugar-coat the debates. I don’t try to do that. Whether I’m in New York or Cape Town, I tell them the truth - 26% will stay, and this is just the beginning.

Lastly, on the issue of beneficiation, we have to beneficiate because we know that the minerals are finite. So, if we can do something about those minerals to expand and fuel the economy, we should do so. We are going to beneficiate. We are going to designate certain minerals as strategic for development in the country so that we make it abundantly clear to the investors.

Yesterday, those that I had lunch with were saying there may be investment that pulls out. I said, well, it will be regrettable but we still have to do it, because Europe and America were developed on
the basis of beneficiation, with our minerals being used. So, our head of state and the government have taken decisions that we have to benefit our own people. Secondly, SADC has taken decisions, saying that we have got to industrialise. Therefore, as a Minister of Mineral Resources, I must avail of those minerals for those purposes. I thank you very much. [Applause.]

Debate concluded.



(Policy debate)


Vote No 26 – Energy:

The MINISTER OF ENERGY: Dumelang bomme le borre. [Ladies and gentlemen, I greet you.]

Hon Chairperson of the National Council of Provinces, Deputy Chairperson, hon Deputy Minister - and Minister, as he is leaving - members, managers, senior managers of the department, the National Development Plan seeks to eradicate poverty in South Africa by 2030. The overarching development goal this creates is an opportunity for intensive programmes for job creation.
The past year has seen a rapid evolution of our energy system. A crisis does present us with opportunities. We are poised at the fissure of a world class, dependable, and sustainable energy sector. The national energy backbone we are building creates hope for increased energy security, economic benefits, industrial development, job creation, and clean energy.

The commitments made by the President in the state of the nation address and the efforts specifically announced to deal with South Africa’s broader energy challenges include the need for the radical transformation of South Africa’s energy mix. This also includes effecting structural changes to public sector entities to assist them with addressing our energy challenges. Further investments in renewable energy and the provision of support for the transition to a low-carbon economy remain our key objective. Notwithstanding these focus areas, we will continue to exploit coal for producing electricity and liquid fuels.

One of the key lessons learnt from our past and current power challenges is the need to co-ordinate our planning and the timing of new energy investments. In response to this, government has put in place a planning framework for the energy sector, anchored in the Integrated Energy Plan and the Integrated Resource Plan, IRP.

These are the instruments to drive government’s set objectives beyond just energy security. They include policy objectives, such as
job creation through localisation, reducing our greenhouse gas emissions, and reducing water usage. Our efforts also continuously seek to diversify supply through regional integration, energy efficiency, lowering the cost of energy, and importantly, increasing access to energy.

These elements form an integral part of our strategic orientation towards energy security and access. Our experiences, to date, have shown that new investments in generation, alone, are insufficient and must be accompanied by significant expansion of the transmission network in order to minimise the overall cost of electricity. This is to maintain system reliability and to mitigate locational market power.

Our Renewable Energy Independent Power Producer Procurement Programme, REIPPP, continues to make notable progress, with projects now located in the Eastern Cape, Western Cape, Northern Cape, Free State, and North West - and we are growing in other provinces.
According to Bloomberg New Energy Finance Ltd, global interest in investing in renewable energy has increased, placing South Africa at number nine of the top ten clean energy investment countries, where other sectors are struggling to attract investments.

This programme has accumulated investment of R193 billion and we should congratulate it. It is a flagship programme between government and the private sector. It aims not only to secure clean
electricity, but also to contribute to socioeconomic development. We have contracted a total of 5 243 MW of green energy, which is connected to the grid.

Across all Bid Windows, to date, a total contribution of
R19,1 billion has been committed to socioeconomic development. This will be spent over the next 20 years as the projects are developed, with R6 billion earmarked for spending on enterprise development initiatives. I ask members to submit to us those initiatives that they would like funded.

Assuming an even annual spend, the average contribution per annum will be R955 million and R300 million, respectively. This can go a long way towards our efforts to alleviate and eradicate poverty. We urge provincial governments and municipalities to provide leadership on how these interventions should evolve. Alignment with the district and local Integrated Development Plans will be critical.

The procurement documentation for an additional 1 800 MW Bid Window will be available by the end of June 2015, with a submission date of the end of September 2015. This creates an opportunity for all ready projects, including those that were unsuccessful from the previous renewable energy Bid Windows 1 to 4. Early connected projects will receive preference.
Security of supply and the reliability of electricity are two of the most important contributors to the growth of the South African economy. The department is working tirelessly to find affordable solutions to the shortage of supply. In line with our commitments in this regard, the Co-generation Request for Bids was released to the market on 4 June 2015. The first Window of the 800 MW co-generation programme will be on 10 August 2015.

This programme is designed with many bid opportunities, and is intended to harness green- and brownfields projects, which will be a quick win in support of the demand in the country. Through this programme – here, we are including the other provinces - extensive coverage will be projects in Limpopo, Mpumalanga, and KwaZulu-Natal.

Our Gas to Power Request for Information documentation was released to the market at the end of May 2015. The opportunity to submit responses will remain open until 20 July. We are encouraged by the overwhelming interest in this programme. The procurement of 3 126 MW of this programme is on track and expected to kick off during the second half of 2015. The 2 500 MW coal programme bid submission date is 28 August, and we will announce preferred bidders by the end of the year.

Given the calls from developers and communities alike, this programme is being extended to offer opportunities for small-scale renewable energy producers. This will stimulate additional, small,
local entrepreneurs and the financial market to provide access to finance for such small entrepreneurs. Though our partnership with the Development Bank of Southern Africa, DBSA, and the German development bank, KfW, the small projects procurement approach is being implemented to promote partnerships between large, experienced developers and smaller, local entities to facilitate skills transfer and risk mitigation. I also request members to submit proposals for this.

Investments in the clean energy sector continue to assist in the alleviation of unemployment. It is estimated that about 21 900 jobs will be created during the construction period and 38 500 jobs during the operations period. I am happy to announce that through the Independent Power Producer, IPP, Office, the department will soon launch a dedicated programme for the development of young professionals, which will target Bursary Programmes, Graduate Programmes, and a Young Professionals Programme. This programme will focus on South Africans, with 80% of the total participants being employment equity candidates.

Over the past few months, the problems of load shedding have underscored the importance of saving energy. It is self-evident that more effort needs to be put into ensuring that the energy we produce goes further in being used for its intended purpose. Energy efficiency is recognised the world over as the most cost-effective manner of securing a resource as scarce as energy. The energy that
was never wasted is, indeed, the cheapest energy that can be harnessed.

In this budget year, the department will focus on the following energy efficiency initiatives. In so far as the policy and regulatory space is concerned, the National Energy Efficiency Strategy and Action Plan will be finalised. This will provide an analysis of our energy situation, isolating the factors that inhibit efficient energy usage. Entities with energy usage above certain thresholds at a contiguous site will be required by law to submit these energy management plans and monitoring functions.

We need private-sector assistance in providing energy statistics for our country. This will enable us to plan appropriately and to advance our energy security agenda. We therefore appeal to all stakeholders to play a positive role in this regard.

The Municipal Energy Efficiency and Demand Side Management programme will continue, and we make a call on all municipalities to take advantage of the potential of this initiative. The Income Tax Act, that we can explain to you, as well.

Our focus on reducing the energy consumption associated with street lighting worked very well in the Nelson Mandela Bay Metropolitan Municipality. This pilot project was successfully completed and we will now embark on a national roll-out of this project.
The model for the National Solar Water Heater Programme will be changed, with implementation now led by the Department of Energy instead of Eskom. The planned new contracting model has been submitted for Cabinet approval and, hopefully, it will be endorsed tomorrow. The Integrated National Electrification Programme, Inep, is responsible for planning, project management, and funding of the bulk infrastructure grid and nongrid, new connections for households.

President Zuma indicated in his state of the nation address that access to electricity had to be fast-tracked at the Amathole,
O R Tambo, Alfred Nzo, Umzinyathi, and Greater Sekhukhune District Municipalities because these districts have the highest infrastructure backlogs. [Interjections.] Just as long as you get it, the pronunciation will come later. The R4,2 billion was appropriated for this programme in the 2014-15 financial year. We achieved 233 455 household grid connections. This year, the Department of Energy has built five new substations, upgraded
15 more, and built more than 430 km of medium-voltage lines.


We must also indicate that most of the new household connections are concentrated in very remote areas. This causes challenges, since most of the rural areas are situated far from the existing grid.
This necessitates the installation of additional bulk infrastructure to connect these areas. Rural connections are, on average, four times more expensive than urban connections. In some cases, this
figure can be as high as 10 times more expensive. We therefore are looking at off-grid and nongrid solutions to our far-flung, rural areas. The development of fuel cells is one of the pilot projects we have done successfully and which we will roll out in the rural areas.

The Integrated National Electrification Programme received an allocation of R5,7 billion. Eskom and the municipalities will receive R3,6 billion and R2 billion, respectively. An additional R313 million is earmarked for the nongrid programmes. Due to the large rural connections still outstanding, Eskom has received a larger portion of the Inep. It has to deliver 280 000 new grid and nongrid connections in this budget cycle. We are monitoring Eskom very closely.

We are a caring government. [Interjections.] Our policies are meant to ensure that electricity tariffs that apply to the poor are sensitive to the plight of poverty afflicting many communities.
Municipalities are urged to isolate those end-users that are indigent for targeting with appropriate tariff designs.

Over and above inclining block tariffs, we have put in place numerous other mechanisms to protect the poor against high electricity tariffs. Free basic electricity and free basic alternative energy have been identified to assist poor families. Approximately R20 billion is transferred to municipalities for the
purposes of distribution as free basic electricity, and all municipalities are participating.

The solar water heater programme is meant to reduce the financial burden on beneficiaries by providing cost-effective technology for heating water. We believe that a combination of cross-subsidisation, free basic electricity, and solar water heating should cover the energy needs of the indigent.

Our fuel-switching strategy involves the substitution of electricity by liquefied petroleum gas. We are asking you to start cooking with gas and we have to start demystifying the notion that if you use a gas bottle for cooking, you are going to blow up. Well, the safety measures of using gas will have to be explained.

The total appropriation of the department for 2015-16 is R7,5 billion, with 93% being earmarked for transfer to
municipalities and state-owned entities. The remaining 7% will be used by the department.

I wish to announce to this House that South Africa will host the International Renewable Energy Conference from 3 to 7 October, in Cape Town. This is because the world sees us as the leading example on independent power producers with solar and wind energy or renewable energy. [Applause.] This is the first time the conference will be brought to Africa. We expect more than 6 000 delegates,
including over 100 Ministers. Hon members, Chairperson, you are invited. Your gold-embossed invitation will follow.

We want to encourage Parliament, the energy sector, and our communities to assist the Department of Energy and SA National Energy Development Institute, Sanedi, who will host this conference, to make it a success. We will be welcoming our delegates to Cape Town with the full support of government. We will make this a broad- based, international, renewable energy event, and not only an event for the elite few and for technicians and academics. There has to be a distinct focus on Africa and its development. Provinces like the Northern Cape and Western Cape have to have ordinary people represented there, telling their stories. Hon Deputy Chairperson, we have a good story to tell. [Applause.]

Mr E R MAKUE: Deputy Chairperson and members, hon Minister Joemat- Pettersson and Deputy Minister Majola, who are responsible for the Department of Energy, the senior staff from the Department of Energy, esteemed and interested persons in the gallery, and other followers of this debate, my sincere appreciation is extended to the hon Litho Suka who served this committee as chairperson with diligence. My appreciation is also extended to all members of the select committee for their commitment to the work that we have to do in this department. You should know that without your selfless commitment and generous support, we would not have achieved what we did. Thank you.
To all our young people in this beautiful country with so much untapped potential, we trust that your celebration of national Youth Day last week was meaningful and memorable. As we salute the heroes and heroines of 1976, this democratic government is painfully aware of the array of challenges that continues to plague our young people today. We look forward with enthusiasm to partnering with you in pursuit of consolidating the gains we have already made and improving on reaching your aspirations and dreams.

This government relies on the energy and the skills of our youth to ensure that the annual performance plan and the budget of the Department of Energy has meaning and significance for many generations to come. I’m intentionally starting with young people, to indicate that what this government is doing has long-term benefits for all people of this country.

Thank you, Minister, and staff of the Department of Energy for accepting the NCOP’s oversight responsibility and for presenting your strategic plan, your annual performance plan and your budget to the select committee as far back as on 5 May 2015.

The entities reporting to this department are the National Nuclear Regulator, the Central Energy Fund, the SA Nuclear Energy Corporation, the National Radioactive Waste Disposal Institute, the National Energy Regulator of South Africa, Nersa, and the SA National Energy Development Institute. It is important to draw your
attention to the fact that Eskom does not resort – no, it does not fall - under this department. Please therefore desist from raising matters that are unrelated to this Budget Vote.

By availing energy in a more equitable manner to all South Africans, instead of to an elite minority, this government has to increase the production of energy sources and supply to the grid. This is in line with addressing historical inequalities and poverty. In an article that is produced by the Power, People, Planet project, it is stated that 621 million Africans do not have access to electricity; and 60% of sub-Saharan Africa’s energy is consumed by South Africa. When we are planning energy production in this country, we are mindful of the rest of the continent.

It was the former President of Nigeria, Olusegun Obasanjo, and former Secretary-General of the United Nations, Dr Kofi Annan, who stated in a recent article:

Without universal access to energy services of adequate quality and quantity, countries cannot sustain dynamic growth, build more inclusive societies and accelerate progress towards eradicating poverty.

Therefore, this budget has that objective in mind, as well - dealing with the energy needs of our people so that we can succeed in our fight to eradicate poverty.
There is an array of the legislative and other mandates that form part of the annual performance plan of the Department of Energy. I will mention four of them: Firstly, to increase investment and capacity in power generation; secondly, to promote administrative justice in the decisions made by the energy regulator and accordingly, promote efficient regulation of the energy sector; thirdly, to increase diversification of the energy sources; and lastly, to ensure investment in power generation.

The Department of Energy plans to encourage increased investment in electricity generation, and Minister Joemat-Pettersson has referred to the partnerships that are being envisaged with the private sector. It is imperative to note that development of such major projects does not happen in a vacuum. As a responsible government, we have to ensure that appropriate legislation is in place and that our natural resources are adequately protected and managed in a sustainable manner.

The select committee also noted with appreciation that the Department of Energy considered the contemporary and future challenges in formulating its annual performance plan and strategic objectives. We are responsible to future generations.

An HON MEMBER: Hear! Hear!
Mr E R MAKUE: In its Strategic Objective 2.1, the department states that it is to improve energy security. The Department of Energy shall accordingly implement an integrated energy plan based on a diversified mix of energy generation, while increasing competition in the energy sector. In Strategic Objective 2.2, it is to improve liquid fuel energy security.

Regulations on petroleum and petroleum products will be monitored and enforced by the Department of Energy. Grid connections for those rural households that are still not connected are included in this budget. This may not be important for some opposition parties and may result in a vote against the budget. For us, in the ANC, it is important to indicate that government is committed to a better life and equality for all people through the presentation of this energy budget.

The Department of Energy’s nuclear energy branch is responsible for managing the South African nuclear energy industry and controlling nuclear material in terms of international obligations; and for nuclear legislation and policies to ensure the safe and peaceful use of nuclear energy. This department and government will not enter into projects without careful consideration of their pros and cons. In the end, our decision is to serve what is in the best interests of our people and our country.
Clean energy will be prioritised. The three sub-programmes of the Department of Energy branch are Energy Efficiency, Renewable Energy, and Climate Change and Designated National Authority.

The clean energy branch will co-ordinate and monitor the implementation of energy-related climate change response measures and environmental compliance. It is stated in Strategic Objective
6.1 of the budget that we are presenting to you. The target is to develop energy consumption baselines for an additional
100 municipalities; and to further identify development opportunities and provide necessary support to other renewable technologies that have the potential to contribute to the electricity, heat, and transport sectors. Awareness on renewable energy will be promoted within the public sector and the general public.

The Department of Education’s Programme 4 mentions a wide range of energy programmes and projects. Allow me to refer to only one of the annual targets, that is, to provide a sustainable electricity distribution intervention plan, including the effect on tariffs, and start with the implementation to deal with the electricity infrastructure backlog in mining town municipalities - municipalities mentioned in the state of the nation address and elaborated on by the Minister - and then finally, to also look at the so-called hotspots.
The approach of the ANC-led government is not only to supply energy to the rich and wealthy but to also look at the energy needs of people who have been historically neglected in this country. We do so at great cost to the fiscus. Programme 4 will also report on energy efficiencies initiated by municipalities through the Division of Revenue Act allocations and other entities with the amount of energy saved and on the detail of energy interventions, pending availability of resources.

It’s been my pleasure to present this budget for approval by the NCOP. Ngiyabonga. Siyaqhuba. [Thank you. We are moving forward.] [Applause.]

Ms E C VAN LINGEN: Hon House Chairperson, hon Minister, hon Deputy Minister, and hon members, the legacy of this government, this department, and this hon Minister will be a mountain of debt chaining future generations to long-term, large-scale projects. The current energy plan will rob the poor of any access to affordable electricity. This government plans to finance nuclear power generation by imposing debilitating electricity costs on future consumers, thereby putting our country’s precarious fiscus in a position of collapse. In spite of advice and multiple cautions from experts, this government knows better.

The NDP cautions against the potentially prohibitive costs of nuclear energy and asks for an in-depth investigation into the
viability of nuclear energy. The Integrated Resource Plan, IRP, 2013 update cautions against commitments to long-term, large-scale investment decisions. International research demonstrates that megaprojects generally miss their targets by large margins; one in
10 succeeds. Projects either cost double, or serve half the number of people, or take twice as long, or all three of them.

The immediate beneficiaries of a nuclear deal would be a very small, select few. In her budget speech, the hon Minister glibly stated that the Cabinet-approved IRP 2010 provides for 9,600 MW of electricity generated through nuclear power, with the first unit commissioned by 2023. However, she conveniently forgets that the IRP is a living document and that it should be updated every two years. She fails to note that the 2010 update, released in 2013 after consultation with energy experts, unions, industry, and civil society, is being completely ignored. Why? Is it because it does not meet the greedy needs of the chosen few?

We are currently suffering the effects of a preventable crisis caused by poor policy decisions over the past 17 years. The ANC-led government is, again, committing to unaffordable solutions based on outdated information. If the hon Minister has nothing to hide, why has she not tabled the International Atomic Energy Agency’s report on the readiness of this country for nuclear energy?
The hon Minister signed an agreement with Russia in September 2014, but only on Friday, 12 June 2015 – nine months later – were all the nuclear agreements tabled in Parliament. We noted on Friday, 19 June that the building of a nuclear power plant will commence at Thyspunt early in 2016 – conveniently, an election year.

Premature statements by Department of Energy officials clearly indicate political manipulation of a supposedly independent environmental impact assessment process. The process is still to be completed. Extensive public participation worth millions of rand are now nullified by the power and greed of the ANC.

The Russian agreement tabled in Parliament reveals that the agreement indemnifies the Russians from any liability arising from nuclear accidents during the reactors’ life, and that South Africa will be solely responsible for damage, both inside and outside South Africa. It hands the Russians a host of regulatory concessions and special favourable treatment in tax and other financial matters, but offers South Africa none such incentives. It requires Russia’s permission if South Africa wants to export nuclear technology it develops locally as a result of learning from the Russians, thereby hindering government’s aim that the nuclear new build programme will develop a globally competitive nuclear industry.

It is astounding that some clauses in the Russian agreement are actually in contravention of our country’s Constitution. In fact,
the clauses in the agreement irreversibly and inappropriately compromise our sovereignty.

It is a fact that international nuclear projects currently in progress have failed in meeting budgets and timelines, for example, the Akkuyu Nuclear Power Plant, in Turkey. It is important for South Africans to ask why the ANC-led government is ignoring the recommendations by the International Atomic Energy Agency with regard to the readiness for nuclear energy development in South Africa.

Where is the regulation framework? I heard the Minister referring to it and I hope it comes quickly because you can’t make it up as you go along. Why is there no costing plan upfront to ensure the affordability of the nuclear power plant build?

How does one budget on a scale from R400 billion to R1 trillion? Why is the government so secretive about the nonstrategic assets that will be sold off to generate R23 billion for energy security? The promise to fund the R23 billion was against the sale of nonstrategic assets. South Africans need to know why South Africa is held to ransom in a deal where Russia is the underwriter, yet it is not accountable for any liability, whatsoever, in the build-own-operate project.
Mr E R MAKUE: Chairperson, I wanted to ask the member whether there is a nuclear plant in the Western Cape.

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, no, no, no, hon Makue! You have to ascertain whether she is prepared to take a question. Are you ready to take a question, hon Van Lingen?

Ms E C VAN LINGEN: No, House Chair.


We would rather focus our attention on how to end electricity blackouts, and speed up energy efficiency and renewable energy programmes. In the short term, solutions to be implemented are: focusing on energy efficiency; amending the proposed Eskom Special Appropriation Bill granting Eskom R23 billion in equity to be converted to a loan with specific performance-related conditions; using a sound market-related solution to fund the energy programmes through privatisation; ensuring constant maintenance and management programmes for the generation, transmission, and distribution sections of the infrastructure; enacting the Independent System and Market Operator Bill; enabling smart grid contributions to the energy network by ordinary South Africans; immediately increasing renewable energy projects in the next five years through the renewable programme to meet the shortfall; and upgrading the grid for urgent conditions. I heard the Minister also referring to this.
In developing long-term solutions, these are: restructuring Eskom into three separate entities – generation, transmission, and distribution; determining affordable funding solutions for these entities, such as privatisation and government bonds; and adding renewable projects and possible gas imports from Mozambique, as well as exploring options of gas finds below the Orange River mouth.

The hon Minister is part of a snollygoster nucleus that controls the energy honey pot, the government, and the country for their own benefit. There is no compassion for the poor or the future of South Africa.

A DA-led government promises freedom, fairness, and opportunity under the guidance of our Values Charter and the DA’s Vision for 2029. Our holistic approach for energy, employment, and economic growth will ensure energy justice, employment opportunities, and equal opportunities.

The time for change at the ballot box is upon us. The DA will give power back to the people, invest in affordable energy security for the real benefit of South Africans, and expose the allure of false promises of the nuclear industry. Let us save South Africa before there is nothing to save. I thank you.

Mr B G NTHEBE: Hon Chair, hon Minister, Deputy Minister, special delegates, distinguished guests, Salga delegates, it is important to
note that the ANC has the responsibility to lead the entire society. We are providing services to you, hon Van Lingen, and your own membership, whether it is Christmas, Good Friday or a public holiday. We would not set up a nuclear plant simply because it is 2016, a year of elections. We will continue to render services to our people, despite the coming elections and we want to tell you now that you are still going to be defeated. [Applause.]

Mr V E MTILENI: Chair, is it parliamentary for a member to chew gum whilst presenting? The hon Nthebe has been chewing gum for the past two hours. [Laughter.] I thought that when he starts to debate he will take it out, but he continues to chew it.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mtileni, please take your seat. The hon Nthebe has not even spent three minutes addressing us but you are saying it’s for the past two hours. [Interjections.] No! Take your seat. Continue, hon Nthebe. Hon Mtileni, please take your seat.

Mr B G NTHEBE: Hon Mtileni, you must be very careful because you are not your own reflection. You are a reflection of the community you come from and you must be exemplary in all efforts to represent them in a manner that is truthful and representative of their own mission and vision with respect and truthfulness at all material times. [Interjections.]
Hon Minister, the ANC-led government is alive to the possibility and reality that energy security goes to the heart of economic development and sustainable livelihoods. The society that the ANC seeks to construct is a society free of all energy constraints, and this commitment on our part requires zeal and determination. We are committed, in that regard.

Yes, Minister, we want to agree with you that South Africa is not immune to the historical challenges that are impeding our sustainable developmental goals. I wonder to what extent others agree with me on that point. Yes, South Africa carries the responsibility to contribute positively to the country’s developmental needs and to Africa, broadly, as a continent.

We recommit to working with all stakeholders to find an amicable solution to the energy challenges facing the country. In all fairness, it is the ANC that first admitted that there are energy challenges in the country and set up structures in place for us to be able to sort out those challenges, moving forward.

We welcome the declaration that there are beginning to be signs of diversification in the energy sector, which saw 28% of the 48% of the independent power producers being black South Africans.
Minister, we want to press that point and ask you to continue to work in that regard so that we begin to become inclusive in our approach and to open up space in previously closed sectors for our
own people to be able to participate. Co-generation supply of about 720 MW will go a long way towards easing the pressure on the grid and we want to thank your leadership in that regard for making sure that this is possible.

The Grand Inga project is anticipated to be the largest hydroelectric power project in the whole world. With this potential to power the whole continent, we will demonstrate our commitment that, indeed, we are Africa and we are one. We want to say the following to those who do not understand and to those who were grandstanding on the Grand Inga project. When we take 4 800 MW and give it up for the domestic use of people in the Democratic Republic of Congo so that they can begin stimulating their own production in their productive sectors for domestic use; then bring the power line through Zambia and make sure that the Zambians tap into that reality; then bring it through Zimbabwe so the Zimbabweans tap into that reality; and ultimately bring it into South Africa, we will be contributing to the reality that Africa is one. We are, indeed, going in that direction. [Applause.]

We are also alive to the possibility that the greatest security in the world is your own people. If we are going to have a power line running from the DRC through Zambia and Zimbabwe and into South Africa, and the ordinary people in Zambia and Zimbabwe see the power line crossing and they cannot even relate to the meaning of the power line, then that does not project South Africa well to the
continent. We want to say that all efforts from your department are well appreciated.

There are two things that we must get right, moving forward. Firstly, we must begin to secure energy generation capacity so that we begin to mitigate the growing demand and stability as we move into the future. This is one reality that the DA probably does not understand.

Secondly, we must begin to capacitate our distribution infrastructural channels so as to match the generation capacity vis- à-vis supply and demand. If we are going to get these two things right: building the generation capacity and making sure that you have enough for your supply but also making sure that you have enough for your reserves; and matching your infrastructural development in terms of your distribution with demand and supply, then we are going in the right direction.

I grew up in a mud house. Never in my wildest dreams did I ever think that one day in my lifetime we would have access to energy, but this ANC-led government made it possible. I heard the hon Van Lingen say here that we are dealing with the matter of an ANC- created legacy in the past 17 years. When I was growing up, my mom was told right to her face that they couldn’t connect power to her house because her house was a mud house. Come 1994, we had power in such a mud house. [Applause.]
I grew up under such realities and that is why it is very difficult for me to understand when people pick and choose reality. Some of us are sitting here and celebrating the NDP. Now, the NDP talks about energy mix. When you want to separate nuclear energy from the energy mix, what are you saying? What is the expression from the NDP?

We are alive to the reality that achievement of the 5,5% economic growth rests squarely on energy security. All efforts are pointing to the positives. We are beginning to record now. To some, these might be nominal but to us, the commitment to face our challenges demonstrates our passion to address the challenges we are facing.

We want to note the progress recorded by the Northern Cape province in being the renewable energy capital of South Africa. If you go to the Northern Cape today and travel throughout the province, you will see clearly how renewable energy is becoming dominant in the Northern Cape, is beginning to spread throughout the country, and ultimately, will contribute to the continent. We want to appreciate your efforts in doing that. We call upon those involved in this process to be inclusive and to contribute to the skills revolution that we so need in our glorious country.

At this point, we want to raise to you, Minister, that there is something called the Spanish invasion. The Spaniards have come into our country, they have set up their renewable energy plants on private land, and therefore, part of the expectations from
government are not being realised. For example, How do you contribute to your skills revolution? How do you carry out your social responsibility in the nearby communities? How do you ensure that there is transfer of skills to those who are ... so that when the Spaniards go back home, we have people in this country who are well capacitated to take care of the renewable energy programme? We want to plead for engagement with such people so that they begin to understand what the vision and mission of the country is, moving forward.

More progress needs to be made in wind generation energy and we want to welcome what we have seen. The Swedes are going to come down to assist us, in this regard.

We remain unshaken in our quest to guarantee energy security to all South Africans, beyond creed or colour. The Five-Point Plan driven by the “war room” is an explicit appreciation of the challenges we are facing, including, but not limited to, endeavouring to resolve the Eskom challenges; seeing that demand-side management is addressed; exploring gas opportunities and Mozambique is beginning to come ... [Interjections.] ...

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Nthebe, your time has expired.
Mr B G NTHEBE: Hon House Chair, I was still coming to the DA and the EFF! [Interjections.]

As I wrap up, I think that the issue with Russia and South Africa is not so much about how nuclear energy is becoming dominant. It is about the jealousy that the DA has with regard to a former liberation movement being supported by dominant countries in the world.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Nthebe, your time has expired!

Mr B G NTHEBE: We support the Budget Vote. [Applause.]


The HOUSE CHAIRPERSON (Mr A J Nyambi): Let me repeat what was said by the Deputy Chair. Once you are there, the clock is also there. Therefore, you must check your time.

Mr V E MTILENI: Mutshamaxitulu, vatirhikulorhi na vaendzi, i madyambu lamanene na ku mi perisa. [Chairperson, colleagues and guests, good evening.]

To start with, the EFF does not support the Department of Energy’s Budget Vote. [Interjections.] Perhaps the Minister could first explain to the House why the ANC rented a crowd and bussed people to support a protest against an institution that it governs. This is
the reason we cannot support it. People of Soweto will see through these gimmicks a confused ANC. Rest assured, they will express their disgust at the ANC. Check what will actually happen in the next local government election because of your misbehaviour and mismanagement in all the departments. [Interjections.] This time around, rigging will not be part of everything.

To everyone else, a tariff hike of 25,3% requested by Eskom is sickening. It would be shameful conduct if the National Energy Regulator of South Africa, Nersa even begins to consider it because the poor, the working, and not forgetting the indigent South Africans, will have to dig deeper into their pockets and may not be able to afford this.

You are seeking to punish the poor. You are seeking to support the poor. You are seeking to punish the poor for 21 years of the ANC’s mismanagement of state-owned entities – Eskom, in particular. All you know, hon Minister, is golden handshakes, which you concentrate on and give to executives of state-owned entities.

Mr E R MAKUE: Chair, on a point of order: I think the hon Mtileni is misleading the public by talking about ANC entities. The ANC does not own Eskom. Nor are those respected people serving in these agencies pawns of the ANC. They are there because of the merit with which they were appointed. It was a transparent appointment ... [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): No, no, hon Makue. You have raised your point of order.

Mr E R MAKUE: I request that the hon Mtileni withdraws the remarks that these are ANC institutions. They are not. [Interjections.]

Mr V E MTILENI: Who seconded those people in those positions? It is cadre deployment. That’s what I mean - cadre deployment.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mtileni, hon Mtileni ...

Mr V E MTILENI: You only seconded ANC people in all those parastatals. That’s why I am saying ANC entities. Why do you always say “ANC-led government” and you want to disown this one? You cannot disown this one.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mtileni, will you allow me to make a ruling?

Mr V E MTILENI: Yes, but you cannot disown your entities. Why do you disown them? Make a ruling, House Chair.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Makue, that’s a point for debate. Continue, hon Mtileni.
Mr V E MTILENI: Thank you. This is a complete contradiction of section 5 of the National Energy Act, which demands that you provide universal access to appropriate forms of energy, Madam Minister. We cannot even ask you how you are going to ensure electricity supply, as you have identified it, as one of your seven key priority areas, when you don’t even know what is happening in Eskom.

Load shedding cannot be a permanent feature in the supply of electricity - or nonsupply of electricity, in your case. It is misguided and unacceptable for the ANC-led government to tell the nation that it must bear the consequences of your mismanagement and incompetence.

The energy crisis the country is facing is a demonstration of the incapacity of the ANC to govern and provide energy security. Without electricity, the government will fail to realise any of its industrial policy objectives. Our people want to establish small businesses and secure their economic freedom, but this government and this department are continuing to fail them. They need electricity to operate.

You have guaranteed multinational corporations like BHP Billiton sweetheart tariff deals until 2028. Yet, they have failed dismally to comply with the Mining Charter. The ANC-led government continues to support their illegal exploitation of natural resources at the expense of poor communities. You continue to support them while they
are embroiled in illicit financial flows, transferring profits to tax havens, and eroding government’s capacity to provide electricity to the poor.

Fragmentation to a point where departments don’t know what is happening in other departments does not start at the bottom. It starts with Ministers fighting over crisis management functions. There is a lack of clear coherent and co-ordinated policy between the Department of Energy and the Department of Public Enterprises.

We are told that Eskom does not have money to complete the construction of Medupi and Kusile. Yet, the President goes around negotiating nuclear deals which will paralyse the state budget. I therefore appeal for the following. Cut fruitless, wasteful, and unauthorised expenditure, stop continuing stealing from the government purse, and redirect all the funds to Eskom. [Interjections.] ANC cadres. Why are we not reducing energy use through energy efficiency measures, especially in mining and manufacturing? Why are we not reducing energy ... [Interjections.]

Ms L L ZWANE: On a point of order, Chairperson, in terms of Rule 46: The chairperson of the committee clearly explained that Eskom is not an entity of this department and you keep on referring to it.
Secondly ... [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): No, hon Zwane, address me. You can’t address ... Hon Mtileni, in terms of Rule 46, no member may deliberately make a statement in the Council which the member knows is false. So, refrain from doing that.

Mr V E MTILENI: Why are we not reducing energy use through energy efficiency measures, especially in mining and manufacturing? Why are we not reducing energy use through energy efficiency measures at home and commercial buildings ... [Interjections.]

Ms L L ZWANE: Still on the point of order, Chair: I had referred to the words that the ANC is stealing. I want the hon member to withdraw it because it’s an allegation that is unfounded.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mtileni, your time has expired. [Time expired.]

Mr V E MTILENI: No, it hasn’t. I’m still left with about 20 seconds. It cannot expire like that. You have been giving your own people extra time. Let me finish. I only have three more sentences. [Interjections.] Bear with me.

Why is the ANC-led government reducing the budget allocated for solar water heaters? [Interjections.] As long as we continue to see burning coal damage our environment, contradict the ... [Interjections.] [Inaudible.] ... of the National Energy Act, suffer
abuse of sickening tariff increases, and while nuclear deals have corruption written all over them, the EFF will not support the budget of the Department of Energy. Thank you.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mtileni ... [Interjections.] No. Order, members!

Hon Mtileni ... hon Mtileni, let me address you. You cannot do what you did now. Imagine if all the hon members tried to do what you are doing.

Mr V E MTILENI: [Inaudible.]


The HOUSE CHAIRPERSON (Mr A J Nyambi): No, I’m saying when your time has expired, your time has expired. There is no need for you to ...

Mr V E MTILENI: [Inaudible.]

The HOUSE CHAIRPERSON (Mr A J Nyambi): You have not even been recognised! [Interjections.] Hon Mtileni ... hon Mtileni ... [Interjections.] ... hon Mtileni, can you take your seat? Hon Mtileni, can you take your seat? You have not even been recognised.

When the hon Nthebe was here, he was stopped when his time had expired. The same happened with the hon Makue.
The DEPUTY MINISTER OF ENERGY: House Chairperson, hon chairperson of the select committee, hon Minister of Energy, and members of the executive who have left, Members of Parliament, senior officials of the Department of Energy, and members in the gallery, good afternoon to you all.

I would like to start by stating categorically that transformation is an imperative we cannot ignore. We ignore it at our own peril. The need for transformation will determine whether we develop or whether we perish.

It is amazing that we are still having to address some of these basic issues 21 years down the line, and it is a little rich for the DA to be the one to tell us about some of these issues, when they themselves, in the area that they control, cannot even handle Africans who are South Africans, and refer to them as “refugees”.

The Department of Energy, with our partners, remains seized with and committed to delivering quality services to our people. Energy is central to our developmental goal for a better life for all. To those with access to affordable, accessible, modern energy, it unlocks access to an improved quality of life, and access to information and to services. To those who don’t have access to this, it remains a major constraint.
It is true we are facing a challenge in terms of load shedding. Perhaps I should remind us all that we have never had blackouts. We are dealing with load shedding, and while this is something that irritates most of us, we must never lose sight of the fact that we have millions of South Africans who do not have access to energy at the switch of a button. We are still in the process of delivering that service to them. Most of those who don’t have this energy resource are mainly in the rural areas and the bulk of them ...

The HOUSE CHAIRPERSON (Mr A J Nyambi): A moment, hon Deputy Minister. Hon Essack, why are you standing?

Mr F ESSACK: Hon House Chairperson, would you please call the speaker to order and ask her to refrain from talking about Eskom issues regarding blackouts, energy, and load shedding issues?

The HOUSE CHAIRPERSON (Mr A J Nyambi): No. Take your seat. You are out of order.

Mr F ESSACK: She spoke about Eskom ...


The HOUSE CHAIRPERSON (Mr A J Nyambi): No. That is not a point of order. You are out of order, hon Essack. Take your seat. Continue, hon Deputy Minister.
The DEPUTY MINISTER OF ENERGY: Thank you, House Chairperson. I think we have to do some induction in terms of what the role of the Department of Energy is.

One of the vehicles that we use to engage our people that perhaps hon members ought to participate in is our public participation programme. This is a programme that ensures we visit the various communities, so that we continuously improve how government services are delivered and received by communities.

In the past eight months, we have interacted with various communities across the length and breadth of our country. We have interacted with the residents of Goso Forest in the Eastern Cape, who didn’t have access to electricity. However, I am pleased to announce today that the residents of Goso are switched on.

The same good story can be told about the residents of Ramofole in Matatiele, who last week, switched on the successfully delivered 660 electrical connections in Ward 24. [Applause.] Similar engagements have been held with the residents of Phalaborwa, Mashamba and Mahatlani, in Limpopo; Bushbuckridge and Nkomazi, in
Mpumalanga; Ulundi and Mtubatuba, in KwaZulu-Natal; Groot Marico, in the North West; and Chatty Extension and Ntabankulu in the Eastern Cape.
These engagements have enabled us to address the backlogs, and we do go back to give feedback where we have been met with challenges.
This Friday, hon member, I invite you to join me, together with Eskom, local government, and provincial government, as we return to Ntabankulu in the Eastern Cape. This will be followed by a visit to the Abaqulusi Local Municipality for a similar exercise. We are focusing our energies on the areas with the largest backlogs.

In all these engagements, we have interacted with our people who have reaffirmed their belief in this government, while not hesitating to tell us of our shortcomings in service delivery. This has ensured that we provide the technical and other support to these municipalities to ensure seamless service delivery.

We are tackling poverty, unemployment, and inequality through localising energy initiatives, one project at a time. It is also evident that we are on the right path. We will continue rolling out services to our people in a sustained manner, and we are determined and committed to reaching universal access by 2025 for all our people. Siyaqhuba. [We are moving forward.]

I conclude by reaffirming that together, as Team Energy, we remain committed and determined to continue working with Eskom and the Department of Public Enterprises to ensure that our electricity continues to accessible, affordable, and reliable for both business and our people; to accelerate the electrification of households; to
ensure that we address the issues of unfunded posts and the filling of vacant posts within our department; and to ensure that the strategic plans of our state-owned companies are aligned to those of the Department of Energy. Ke a leboga. [Thank you.] [Applause.]

Mr R LENTIT (Western Cape): Hon House Chairperson, as a representative of the Western Cape Provincial Parliament, I can see the effects the energy crisis has on our people, every day. In the face of that reality, it is quite incredible to listen to Minister Tina Joemat-Pettersson saying the energy crisis creates opportunities. As with every other denial of the ANC-led government, it is the poor people that suffer the most when our country faces a new crisis.

The energy crisis destroys jobs, and the energy crisis is destroying our economy. This, while the ANC is trying to beautify the energy crisis. It is taking away job opportunities, Minister Joemat- Pettersson, not creating opportunities for jobs. These job opportunities are being taken away at a time when unemployment is already record high.

The energy crisis disrupts learning at a time when our schools are already at the bottom of international school rankings. The energy crisis creates opportunities for criminals to commit crime, which is evident in our poor communities when there is load shedding. This is the only time I agree with Minister Joemat-Pettersson: The energy
crisis creates opportunities for criminals to commit crime. This is a real crisis. The energy crisis is busy compromising and destroying the socioeconomic landscape of our economy.

The IRP outlines the electricity mix for South Africa and is supposed to be updated every two years. It has not been updated since 2010. This is long overdue. The price of electricity has changed dramatically in this time, and the breaking news last Wednesday was that of a 25,3% hike. Is that an opportunity? No. Instead, this is an opportunity to deepen the energy crisis. This is an opportunity where our economy has been driven into the intensive care unit.

An updated IRP is urgently required to remodel the most cost- effective electricity mix options. This remodelling could exclude nuclear energy and dramatically increase renewable energy and gas. Gas will complement the increased renewable energy allocation.

Energy is key for our country to deliver on the goals of the National Development Plan to create jobs. To achieve that, we need to construct infrastructure to import liquefied natural gas and increase exploration to find domestic gas feedstock to diversify the energy mix and reduce carbon emissions. This is also to procure at least 20 000 MW of renewable energy by 2030.
To procure renewable energy by 2030, we have to import electricity from the region and we also have to create 11 000 MW of ageing coal- fired power stations in stepping up investment in energy efficiency and improve the energy efficiency of mining and mineral processing by 15% by 2030. Gas turbines can be invested in incrementally to match demand growth. The unit capital cost for gas turbines is cheaper. They are more easily financed and more able to adjust their outputs to make up for the shortfall from variable renewable energy sources.

The Western Cape government is not going to wait for national government to act. The DA-led Western Cape government will therefore continue to foster the supply of alternative energy. Our work on landing liquefied natural gas in our province continues.

The Western Cape has applied for designation of the Atlantis Special Economic Zone. The draft regulation for the Special Economic Zone applications has recently opened for comment and we will follow this process closely. The DA-led provincial government is co-operating with municipalities, particularly in the areas of waste to energy, such as the smart grid pilot project in Drakenstein.

For the Western Cape government, energy is key to poverty alleviation and job creation. We are also driving an initiative to create economic growth and job creation in the province, in partnership with the private sector. This process is known as
Project Khulisa. Project Khulisa is one of the game changers for the Western Cape government.

Another game changer is to stabilise the supply of energy. The Western Cape government, the City of Cape Town, and businesses in the province are working closely together to find a solution to minimise the impact of load shedding on our economic growth. This follows the two governments’ selection of achieving energy security as a game changer over the next five years.

These two governments have also worked on a number of potential solutions with businesses and are currently holding further discussions. Solutions include proposals on the management of load shedding, rooftop photovoltaic systems, energy efficiency, independent power producers, and power-purchasing agreements.

Minister Joemat-Pettersson is wrong. This is not a crisis that creates opportunities. The energy crisis is fatal. In February this year, a male patient in Bloemfontein, who was connected to two oxygen machines, died, allegedly after Eskom implemented rolling blackouts twice in one day. [Interjections.] Are we busy threatening the constitutional right to life?

Deputy President Cyril Ramaphosa said that other countries also have energy problems but that the South African government has a plan.
The question is, What is that plan, other than raising the cost of
energy by more than 25%? It has taken the ANC more than 20 years to come up with a plan, but we still don’t know what that plan is. The only plan is rolling notices on our TV screens with load shedding notices.

However, where the ANC fails, the DA delivers. That is why the DA has contingency plans and was able to keep the lights on in Cape Town when the rest of the country was going dark on Saturday, 20 June. The energy crisis escalated into a right to life crisis. It is now a Bill of Rights issue.

As announced by Minister Joemat-Pettersson here today, the world will descend on the soil of our beautiful country to attend a renewable energy conference. No, they are coming to our beautiful country because they are worried about our energy crisis. They are coming to advise the Minister and her government on how to get the energy crisis out of ICU. Minister Joemat-Pettersson, you are wrong: The energy crisis does not create opportunities but destruction. I thank you.

Cllr B FORTEIN (Salga): Hon Chairperson, hon Minister and Deputy Minister, hon members, ladies and gentlemen, local government in South Africa has contributed to the achievement of a number of significant social and economic development advances since the ushering in of the democratic municipal dispensation in December 2000. The majority of our people have increased access to a wide
range of basic services, including energy and electricity. More opportunities have been created for their participation in the economy of these sectors.

In the past 15 years, local government has been strategically positioned as a key platform for redistribution, predominantly through equitable service delivery. New energy legislation post 1994 also generated a new role for local government. The shift from conventional supply-side approaches towards a greater emphasis on demand-side management and sustainable development leads policy to implementation of actions located in the local government sphere.
Energy access for all, building efficiency, the roll-out of efficient water heating in the residential sector are but to name a few.

The Department of Energy is currently finalising the Integrated Energy Plan, which informs the future energy mix of the country, going forward. This plan is welcomed, with the hope that it will clearly outline and articulate the role of local government in future programmes and the implementation cascading down to the Integrated Resource Plan for electricity.

The implementation of the Renewable Energy Independent Power Producer Procurement Programme, which is a build-own-operate type of public-private partnership, and its progress, so far, is commended. Since its inception, the REIPPP has been more focused at a national
level where Eskom is an off-taker and a buyer of the produced renewable energy. Some municipalities which have participated in this programme have been involved only in the wheeling of the power to the Eskom grids and not as off-taker. While the South African government has recorded good progress in this programme, in the near future - if not already - Eskom may be constrained where the grid network availability and capacity is concerned.

The Department of Energy needs to start formulating plans to roll out programmes at local government level. Rolling out this programme at local government level may create a number of opportunities for municipalities in the infrastructure development, job creation, and upskilling of the municipalities’ technical employees, namely the engineers, the technicians, and the artisans, etc. So far, all these benefits and opportunities have only been recorded within Eskom.

Eskom is a national utility appointed to buy renewable energy, and the REIPPP is allowed to recover, through its tariffs, some of the funds to develop their infrastructure with the aim of integrating renewable energy into their developed grids. This only being a national programme and Eskom being the only off-taker also poses a missed opportunity for municipalities to develop and further expand their infrastructure to create capacity to integrate renewable energy into their networks.
The finalisation of the National Energy Efficiency Strategy and its Action Plan is also welcomed. It should, however, be emphasised that the strategy, in terms of its implementation or action plan, must comprise simple or not-so-complicated frameworks for access to funds, especially for smaller and incapacitated municipalities.
History has shown that the success of such strategy implementation is purely dependent on the nature of the action plans or implementation frameworks, whether they are simple or complex. The strategy needs to be clear on the role of local government or the municipalities. The previous Energy Efficiency Demand-Side Management programme that was implemented through Eskom proved challenging for implementation at the municipal level.

We further welcome the Department of Energy taking over the National Solar Water Heater Programme, which was previously within Eskom.
This is good news for municipalities because it means that they will be able to access the funds directly from the department.

It is also emphasised that a straightforward framework with less bureaucracy to access funds must be put in place and ensure that the framework, in itself, doesn’t delay the implementation of the projects, as this may lead to the funds being returned to the fiscus purely because of the constraints emanating from the complexity of the frameworks put in place in order to access these funds.
The SA Local Government Association, Salga, welcomes the Department of Energy’s pronouncement of the R2 billion for the Integrated National Electrification Programme, Inep, to be allocated to municipalities for the 2015-16 financial year. It is our respectful view that we will continue working with the department, Eskom, and other stakeholders to ensure that municipalities deliver by contributing to the attainment of the set new households connection targets, as envisaged by the new Electrification Road Map for South Africa.

We also recommend that the department, just like the model of the Inep, engages on funding projects for alternative energy bulk infrastructure at a municipal level. Eskom is currently having financial challenges and network constraints, to some level. The development of infrastructure for the integration of alternative or renewable energy into the municipal grids and networks where there is capability may be a missed opportunity for the country if further ignored.

Mr M KHAWULA: Hon House Chairperson, on a point of order: I just wanted to find out if it’s parliamentary for the presiding officer to go to sleep in the Chair? [Laughter.]

Cllr B FORTEIN (Salga): In conclusion, the Integrated Resource Plan of 2010 gives direction to national energy investment and development and has substantial policy implications for local
government. Local government forms the largest consumer wedge in the national demand forecasts. It is therefore imperative to also include a detailed analysis of municipal strategies and targets relating to demand and the potential of energy efficiency.
Transmission and distribution capacity modelling should also be taken into consideration, as it has an impact on areas such as embedded generation, efficiency, and demand management.

These national policy and programme developments illustrate the need for greater consistency and understanding in the approach to local government, particularly the large metros, which have a considerable role to play in the national energy picture. We also applaud the department for ensuring the finalisation of, among other things, the Integrated Energy Plan, the Electricity Regulation Amendment Bill, and the National Energy Regulator Amendment Bill on its legislative programme for the 2015-16 financial year.

In conclusion, hon Minister, we would like Salga to be extended an invitation for the seminar that will be held in Cape Town. Thank you. [Applause.]

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mtileni, why are you standing? [Interjections.]
Mr V E MTILENI: There was a point of order which was raised and I see you are just keeping quiet, Chair. You’re not responding to the House. Are you keeping quiet because it is about yourself?

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, it was not a point of order. So ...

Mr V E MTILENI: Why are you keeping quiet?


The HOUSE CHAIRPERSON (Mr A J Nyambi): Can you take your seat, hon Mtileni? I’ve made a ruling. It was not a point of order.

An HON MEMBER: You will never be the Chair, hon Mtileni!


Mnr W F FABER: Voorsitter, Minister, lede en gaste, Eskom is weer besig met sy prysverhogings met elektrisiteitstariewe van 25,3% vir hierdie jaar. Die Nasionale Energiereguleerder van Suid-Afrika moet mooi dink voor hulle so ’n verhoging goedkeur wat reeds die vuisvoos verbruiker totaal sal platslaan. Indien ’n mens na die verhoging gaan kyk en sien dat Eskom die geld in ag maande wil verhaal na die einde van sy boekjaar, werk die vergroting in werklikheid op 31,5% uit. U weet dit.

Mnr Molefe het gesê dat indien die verhoging nie toegestaan word nie, daar selfs meer kragonderbrekings sal wees. Dis nou natuurlik seker dreigemente teenoor Nersa en ons verbruikers om die toegewing
te verkry. ’n Beraamde R15 miljard word benodig vir die 2 000 MW dieselkragopwekkers ten tye van beurtkrag. Die realiteit is dat Eskom sowat R11,4 miljard bespaar het, omdat hy minder steenkool verbrand het weens agterstallige instandhouding, maar dit weet ons almal ook. Dit is dus duidelik dat die besparing van steenkoolverbranding goedsmoeds misgekyk word wanneer daar gekyk word na die verhoging van tussen R11 miljard en R15 miljard wat dieselkragopwekking moet dek.

Dan, Minister, so van werkskepping gepraat, Suid-Afrika kry ongeveer
1 400 gegradueerde ingenieurs elke jaar van ons eie universiteite by wie dan, byvoorbeeld, deur Eskom in diens geneem kan word en verder daar opgelei kan word, maar weereens hardloop ons ANC Kuba toe om ingenieurs in te voer – invoere, grys invoerprodukte, dink ek. Die Kubaanse ingenieurs se kwalifikasies word ook nie eens deur die
Suid-Afrikaanse Vereniging van Raadgewende Ingenieurs , SAVRI, wat deel vorm van die Washington-akkoord, erken nie. Dit is ’n internasionaal-geakkrediteerde kwalifikasie. Kubaanse ingenieurs beskik nie daaroor nie. Dit word nie aanvaar nie. Die situasie bekommer selfs die president van SAVRI, Abe Thela, maar ons Minister Joemat-Pettersson steur haar nie daaraan nie. Is dit nie tyd dat ons na ons eie mense omsien en werk aan ons eie mense bied, veral gegewe ons werkloosheidsyfer nie?

Waarom kyk die regering nie na gas nie, na die 100 triljoen kubieke voet in die sogenaamde Rovuma-vanggebied aan die kus van Mosambiek?
Mossgas het begin met 1 triljoen kubieke ton gas. Sasol is reeds besig om gas van Mosambiek in te voer deur 865 km pypleiding. Waarom werk ons nie saam met ons Mosambiekse bure langs ons nie? Wat is die rede waarom u na Rusland hardloop? Selfs Frankryk se kernkrag is goedkoper, Minister. Dit is die eintlike vraag. U moet ons antwoord, vandag.

Ek wens ek het meer tyd gehad, want ek sien hier Gwede Mantashe, die nuwe “Minister van Energie”, wil blykbaar ook gedeeltes van Eskom privatiseer. Dan weet hy ook nie meer wat hy wil privatiseer nie.
Eintlik moet die ANC met sy teenstrydighede binne homself en sy affiliate maar handdoek ingooi ... (Translation of Arikaans paragraphs follows.)

[Mr W F FABER: Chair, Minister, members and guests, Eskom is once again busy with its price increases on electricity tariffs at 25,3% for this year. The National Energy Regulator of South Africa should think carefully before they approve such an increase that will totally floor the already punch-drunk consumer. If one has a look at the increase and notes that Eskom wants to recover the money in eight months after the end of its financial year, the increase works out, in reality, at 31,5%. You know this.

Mr Molefe has said that if the increase is not approved, there will be even more power cuts. Of course, these are probably threats against Nersa and our consumers in order to secure the concession.
An estimated R15 billion is needed for the 2 000 MW diesel-powered generators during load shedding. The reality is that Eskom saved approximately R11,4 billion, because it burnt less coal due to overdue maintenance - but we all know that too. It is therefore clear that the saving on coal combustion is blithely ignored when the focus is on the increase of between R11 billion and R15 billion to cover diesel-powered generation.

Then, Minister, speaking about job creation, South Africa gets approximately 1 400 graduate engineers a year from our own universities who, for example, could then be employed by Eskom and receive further training there, but once again, our ANC runs off to Cuba to import engineers. Imports - grey imports, I think. The qualifications of the Cuban engineers are not even recognised by the SA Association of Consulting Engineers, SAACE, which forms part of the Washington Accord. It is an internationally recognised qualification. Engineers from Cuba do not have it. It is not accepted. The situation even has the president of SAACE, Abe Thela, worried, but our Minister Joemat-Pettersson isn’t concerned about it. Isn’t it time we took care of our own people and offered jobs to our own people, particularly given our unemployment rate?

Why doesn’t the government look at gas - at the 100 Tcf in the so- called Rovuma Basin off the coast of Mozambique? Mossgas began with
1 trillion cubic tons of gas. Sasol is already busy importing gas from Mozambique via an 865 km pipeline. Why are we not co-operating
with our Mozambican neighbours next door to us? What is the reason for your running off to Russia? Even France’s nuclear power is cheaper, Minister. That is the actual question. You must give us an answer, today.

I wish I had more time, because I see here Gwede Mantashe, the new “Minister of Energy”, also wants to privatise parts of Eskom, apparently. And then again, he doesn’t always know what he wants to privatise. The ANC, with all its conflicts within itself and its allies, should actually just throw in the towel ...]

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Faber ...


Mr W F FABER: I am finishing.

... en dan moet hulle net weet ... [... and then they should just be aware that ...]

The HOUSE CHAIRPERSON (Mr A J Nyambi): You are taking your time. Your time has expired.

Mnr W F FABER: ... Suid-Afrika verdien beter. [... South Africa deserves better.]

Mr M KHAWULA: House Chair, hon Minister, and hon Deputy Minister, the country is currently experiencing a problem of load shedding and
power outages. Partly contributing to this problem is Eskom’s delay in attending to the refurbishing of ageing infrastructure in a timely manner.

The issue of ageing infrastructure has today become one of the major challenges for the department and the country. Poor planning and poor management are also concerns. One hopes that the changes effected in some of the institutions concerned will bring adequate leadership that will have the necessary foresight into the issues, for example, Team Energy, through Eskom, getting two long-term contracts with coal suppliers for the plants. Some of these plants have ageing infrastructure where operations have ground to a standstill. On the other hand, Team Energy still continues to pay for and stock coal that is unused. As a result, Team Energy, through Eskom, has millions of tons of coal that remain unused in its stock because of poor planning.

When Medupi was kick started, timeframes were laid down. In accordance with these timeframes, Team Energy, through Eskom, contracted Exxaro for the supply of coal. Billions of rand have been spent on coal that should have been used but it has been unused in the stockpiles for the last two years, all because of poor planning. The continuous rise of electricity prices to a point of being unaffordable to the indigent is also a concern. As electricity tariffs go up, the demand for installation and usage is affected.
The department has identified seven key priority areas for focus during this financial year. Amongst these is electricity supply, which is a good thing. The department has set as its target
20 000 households with nongrid electrification. The department also has 45 141 targets for the installation of solar water heating units in the residential and commercial sectors. The department plans to build six new bulk substations and upgrade eight additional substations. Lastly, on targets, the department plans to electrify, with grid electrification, 260 000 households during the 2015-16 financial year.

These are really ambitious targets for a department that has not done that well in the past. Be that as it may, the issue is we still need to be given information, hon Deputy Minister, as to where all this work will be taking place. Relevant select committees will have to monitor the implementation and achievement of these plans. In terms of meeting timeframes and targets on nuclear energy, as a country, we need to improve. Even in this respect, the department has set targets that have to be monitored.

Most of us were shocked when the Minister did an about-turn on the issue of the board and chief executive officer at the SA Nuclear Energy Corporation, Necsa. This was within a period of not more than four weeks. One hopes that the Minister’s about-turn was not forced by instructions from above in order to benefit certain people, because this is what was reported on the issue in the media. One
also hopes that relations have returned to normal for all concerned at Necsa. I thank you, Chairperson.

Mr S G MTHIMUNYE: Hon House Chair, shall I join the other speakers who spoke earlier on this day and say all protocol observed? I shall also join you, hon Chair, in making reference to this colossus of our own African soil produced by the disciplined forces of the left Amílcar Cabral, who said that every generation must identify its mission, fulfil it or betray it.

The ANC, together with the people of South Africa, have identified a mission and it gravitates towards achieving that particular mission. Shall I also, with your permission, hon House Chair, make reference to the ANC’s NEC lekgotla recommendations, earlier this year? These are as follows: Firstly, for us to address the challenges of energy supply in our country, we need to expedite all viable options to increase supply in the short to medium term, for example, additional open cycle gas turbines, renewable independent power producers and co-generation, among others.

Secondly, assess ways of reducing demands which have low economic impact; thirdly, assess maintenance practices; fourthly, provide a financial support package to Eskom to address stress caused by the overruns on the building programme; fifthly, establish a “war room” to drive progress - and that “war room” is currently led by the Deputy President of the country; and lastly, ensure sustainable
solutions that will move towards cost-reflective tariffs. So, who in their right mind can dare challenge me when I say this is indeed a good story to tell? [Interjections.]

May I, with your permission, hon House Chair, present a synopsis of a little balance sheet around energy supply and demand in our country? The origins of the electricity supply industry in the first years of the 20th century, for example, were driven by the needs of the booming mining industry. Later on, the development of local nuclear capacity reflected concerns for power supply security.

In the 1950s, the apartheid government decided to develop a synthetic petroleum industry as a response to threats to crude oil imports. Today the ANC-led government’s focus is on widening household access to electricity, making modern energy services more equitable and affordable for the poor and increasing empowerment of the disadvantaged in the energy sector.

The sector remains at the heart of structural development in the economy. The energy sector has supported major investments in heavy industry and mining, which shape the economic and energy structure of the country. Much of the manufacturing sector is also linked to mining activities through mineral beneficiation and metal production. All these activities are energy intensive, relying on the availability of coal for electricity production.
One of the most effective arenas of change has been to shift the programmes of the state towards the reconstruction and development of our country, with particular focus on the poor and the marginalised by eliminating poverty and providing access to housing, water, electricity, sanitation, education, health, social protection, and support to the millions that were deprived of these basic rights under apartheid. The apartheid state planned the consignment of all African people to homelands. Whilst only partially successful, as many African people lived in townships and informal settlements on the outskirts of the South African cities, most remained isolated in underdeveloped homelands, trapped in a vicious cycle of abject poverty and unemployment.

The impact of apartheid spatial patterns also continues to be felt to this day. Most blacks were not provided with access to basic municipal services, such as electricity. In the homelands, these municipal services were often nonexistent. In black urban areas, if they did exist, they often did not meet basic needs and were often intermittent in nature.

So, the hon Van Lingen, representing the DA, in her right mind has the audacity to challenge the ANC on the issues of affordable electricity, vis-à-vis privatisation. This, to me, sounds very strange when it comes from a representative of the DA. My response to this is that the hon Van Lingen cannot hunt with the hounds and
run with the rabbits. It cannot happen in real life. From where I stand ... [Interjections.]

Ms E C VAN LINGEN: Chairperson, whenever any of us uses a word like “puppet” or “dog” or anything like that, it’s ruled as unparliamentary. I ask you to rule this expression unparliamentary, please.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Which expression, hon Van Lingen?

Ms E C VAN LINGEN: He said, I am running with the dogs and hunting with the rabbits. [Interjections.]

An HON MEMBER: You can’t run with the runners. [Laughter.]


The HOUSE CHAIRPERSON (Mr A J Nyambi): Order, hon members! Hon Van Lingen?

Ms E C VAN LINGEN: Chairperson, am I a rabbit?


The HOUSE CHAIRPERSON (Mr A J Nyambi): No, I am going to make a ruling.

Ms E C VAN LINGEN: Am I a dog?
The HOUSE CHAIRPERSON (Mr A J Nyambi): Allow me to make a ruling.


Ms E C VAN LINGEN: Thank you, Sir.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Yes, I am going to make a ruling, but I have to get its context and that can only be through the Hansard. Let’s allow him to continue. Take your seat, hon Van Lingen.

Ms E C VAN LINGEN: Chair, didn’t you hear?

The HOUSE CHAIRPERSON (Mr A J Nyambi): Continue, hon Mthimunye.


Ms E C VAN LINGEN: Didn’t you hear? The hon Khawula must ask you to wake up again!

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, I heard the word “rabbits” and ... Hon Mthimunye, continue.

Mr S G MTHIMUNYE: Thank you, hon House Chair. Again, the hon Van Lingen, in her own words, made reference to the ANC as being biased towards a chosen few. History shall absolve my ANC, like it has done many times in history. This movement of the people – the ANC – has always been biased towards the poor, and that is also on record in history. [Interjections.]
The hon Van Lingen continues, again, to suggest that the ANC-led government or the Department of Energy must suspend its constitutional obligation of service delivery just because it is a pre-election period. I think, again, hon Van Lingen, one cannot hunt with the hounds and run with the rabbits. [Interjections.]

Historical records of my organisation, the ANC, bear testimony to the fact that this is a people’s movement which has always been biased towards the poor.

In my final analysis, again, the rejectionist of note whom we began to see after the previous election ... [Interjections.]

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mthimunye, I am sorry. Hon Faber, why are you standing?

Mr W F FABER: Hon Chair, I would really love to ask this Member of Parliament a question which I know he will be able to answer. [Laughter.]

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, no, no. Let me first ascertain whether he is ready to take that question. Hon Mthimunye, are you ready to take a question?

Mr S G MTHIMUNYE: Chairperson, I always take questions from the hon Faber, but he knows where I take question from him. Not here.
An HON MEMBER: In the bus!


The HOUSE CHAIRPERSON (Mr A J Nyambi): No, he is not ready to take a question. Take your seat, hon Faber. [Interjections.]

Mr S G MTHIMUNYE: In that BMW at Polokwane Airport. [Laughter.] [Interjections.]

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mthimunye, I am sorry. Hon Dlamini?

Ms L C DLAMINI: Hon Chair, on a point of order. The hon Faber has just addressed the hon Mthimunye as, “this member”. He is “the hon Mthimunye”. [Interjections.] No, no.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Faber?


Mr W F FABER: Hon Chair, I will then refer to “that hon member”.

The HOUSE CHAIRPERSON (Mr A J Nyambi): Continue, hon Mthimunye.


Mr S G MTHIMUNYE: House Chair, to hon Mtileni, the EFF rejectionist of note, with concocted anger that is not original, so suspicious of being funded, comes here and again rejects the budget, as usual, whereas their organisation claims to be have the interests of the
working class at heart. Is this not self-contradictory, hon House Chair? [Interjections.]

Sihlalo, isisho sesiZulu sithi, “Zinqunywa amakhanda ziyekwe.” [Chairperson, according to an isiZulu saying, one need not say everything.]

Thank you. [Applause.]


The MINISTER OF ENERGY: House Chair, I would like to thank hon members very much for those responses. I will definitely take them into account when we have our following planning session.

Thank you to the Select Committee on Economic and Business Development. The inputs have really been well received.

Hon Lentit, you are concerned about there not being any opportunities, but then you go on a long rant about liquefied natural gas that will be developed, the Atlantis Special Economic Zone that will be developed - all by the ANC-led government. If these are not opportunities, then what are they?

We do not wish to wipe away the problems. We acknowledge that there are problems, but then there are equal opportunities. Building the gas backbone of our country has now become a priority, which it wasn’t a few years ago. So, for the gas-to-power procurement - if
you haven’t listened, please listen now; I’m repeating it - we have announced 3 126 MW of gas that will be procured. Now, that is already there and you might have missed it. Sorry, but the opportunity is still there. Run, it’s an opportunity!

You are speaking of energy security as a game changer. It is a game changer. The biofuels regulations are there and we have struggled for them for years. Now, it has come together. If you are not together, then that is your problem.

I cannot now implement an IRP 2013 which, in 2013, did not spell out the difficulties that we were going to have in 2015. If it was a document which told us that we were going to have these problems in 2015, it would have been worth implementing. So, how do you implement something which does not tell you about the challenges which you are currently facing? The ministerial advisory committee is advising me on what to do with the Energy Master Plan, the Integrated Energy Plan and the IRP. It will be IRP 2015 and IRP 2016 which speak to the current challenges that the country has.

With regard to the opportunities for local government at a municipal level, we will engage with local municipalities and Salga, in particular, on the details of working with municipalities. [Interjections.] In terms of the social responsibility of the IPPs, R19,1 billion will be available. Of that, R6 billion will be used
for enterprise development, and specific focus and attention will be paid to the youth and women.

Now, this Renewable Energy IPP programme, which will be over the next 20 years, will cost the taxpayer, and it is going to cost the taxpayer billions - even trillions - but we do not have a problem because it is wind and solar. So, what is your real problem with nuclear energy?

The Western Cape runs its energy on the nuclear energy of the Koeberg Nuclear Power Station. It is one of the cheapest sources of energy in our country right now. [Interjections.] So, if we could run a very efficient and effective nuclear energy programme through the Koeberg Nuclear Power Station and through the Pelindaba Nuclear Research Centre, are you saying that now, suddenly, because there is a black government, we cannot run nuclear energy? Your inferences are racist in the extreme. [Interjections.]

We did not give you a financial model, yet you are complaining about a financial model. You are complaining about the Russians. Is this the fear you have - that the Russians liberated you? The Russians did not just assist the ANC, the Russians liberated you, the DA, the historically white advantaged people of this country. [Interjections.]
The Russians assisted us in fighting apartheid and the Russians will assist us in developing our energy programme for our future prosperity. This prosperity, this better life for all, will not be developed by the Americans. It will be developed by our friends. We know who our friends are. I thank you. [Applause.]

The HOUSE CHAIRPERSON (Mr A J Nyambi): Thank you. Let me take this opportunity to thank Salga, the special delegates, Deputy Minister, and Minister, for availing themselves of their time for this budget debate ... [Interjections.] ... and all hon members.

Debate concluded.


The Council adjourned at 19:46.





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