House Chairperson, hon Minister, hon Deputy Ministers, hon members, South Africa's pre-1994 economic growth path was characterised by extremes of development and underdevelopment, resulting in the legacy of South Africa as a country of two nations.
The developed component of this economy has enjoyed historic over- investment, which achieved short-term cost-competitiveness. This, however, has been at the expense of the underdeveloped part of the economy, which represents the experiences of the vast majority of South Africans where economic potentials have not been able to harness results due to backlogs and underinvestment in social and productive capital.
Our Constitution and government are committed to building a truly nonsexist society and progressively addressing the legacy of the past. However, despite the changes ushered in by the democratic dispensation, there are gaps such as the lack of a budget document that gives a gender breakdown of spending by departments.
Identifying this gap, female MPs and women representatives of NGOs started the Women's Budget Initiative, which was and remains an important tool to assess the impact that the main budget has had on women since the democratic government came to power. Although called the women's budget, it is not a separate budget, but rather a policy tool that does gender breakdowns for the purposes of analysis and further improving our policies on a continuous basis. The Expanded Public Works Programme received an additional R3,2 billion in 2005 to boost provinces and municipalities, which, on the surface, will benefit women because of the Code of Good Practice, for the programme requires 60% female employment. Since 1999, the Department of Public Works has invested more than R1,7 billion and created 2 993 rural infrastructure projects and 123 738 jobs in the impoverished rural areas of KwaZulu-Natal, Eastern Cape, Free State, Mpumalanga, North West and Limpopo.
Since 1994 many women are now able to own houses irrespective of their marital status, age and race. The Department of Housing has adopted a policy, which says that in all the contracts that are given to emerging contractors, 10% of them should be given back to women. This sector is also empowering women through the People's Housing Schemes, which are largely composed of women. Many women benefited from the presidential-led projects aimed at poverty alleviation such as the Working for Water Programme. These projects employ members of communities to remove invasive species near and around dams and rivers so that water can flow with ease. Such programmes provide women with an income and, at the same time, communities benefit directly through their efforts. They are also trained and given skills for future purposes.
The deracialisation and redistribution nature of our social security system introduced since 1994 has benefited many black people and women in particular, especially such social grants as pensions and child support grants. However, our comprehensive social security system is still evolving and we need to improve on the delivery system of the already existing grants so that they indeed reach the core target groups - which are women and children.
The universal access to basic education through the schooling system, adult basic education and other skills training programmes continue to make an impact on the high levels of illiteracy amongst women. However, educating the girl-child continues to pose serious challenges because of the high dropout rate for girls, especially at secondary level.
The structures are demand-driven and include community gardens, multipurpose community centres, rural access roads, bridges, taxi ranks, market stalls, sports fields, additional classrooms, poultry houses, theme parks and many more. These projects benefited mostly women, because women were employed and for the first time some were able to put food on the table.
In last year's budget some consideration was given to tackling gender inequities. However, many interventions tend to be gender-blind. For example, interventions that benefit everyone, including women, will benefit women less than men and girls less than boys as a result of the imbalances mentioned above. Thus a gender-blind policy or intervention becomes gender- insensitive. What is needed is a move away from the gender-blind interventions to proactive gender- sensitive interventions. In order for this to happen, there has to be ongoing critical engagement with the impact of budget expenditures on vulnerable groups, both inside government and within the civil society.
This year's budget should address the imbalances observed with regard to who is most vulnerable in society. For example, those most vulnerable to HIV/Aids infections are female; those most vulnerable to poverty are female; and those most vulnerable to lower-paid employment and to unemployment are women. Within the South African context, racial, class and geographical factors compound these vulnerabilities.
Thus, when developing plans and programmes to address the imbalances within society, a gender perspective provides a critical lens through which these layers of inequalities can be considered, for example, the rolling out of ARVs to all those who are in need of them. Unless gender-sensitive plans and programmes have money allocated to them, it is not possible to implement them, thus the budget also needs to be gender-sensitive.
In keeping with our maxim that the people must govern, we must embark on a legislative process to make sure that women are the beneficiaries in our economy. It is best to fast-track and maximise our interventions for women entrepreneurs in our communities.
In his state of the nation address, the President of the Republic of South Africa said that we will also need to pay the necessary attention to the important issue of the inclusion of women, and that of Asgisa has, once more, confirmed the need for us to expand our small, medium and micro enterprises sector, paying particular attention in this regard to broad- based black economic empowerment and the development of women. Entrepreneurship is core to building a vibrant and sustainable SMME sector. The SMME sector is critical to achieving the key national development objectives of economic growth, employment creation and equity.
Without the development of women there cannot be development in the country. Women need to play an increasingly important role in the leadership of businesses in our country, and in particular in state-owned enterprises. None of you here today need me to remind you of the multitude of challenges that face women in business in South Africa. Thank you, House Chairperson. [Time expired.][Applause.]
Chairperson, Ministers and Deputy Ministers, hon members, members of the public, ... . . . . maqabane, bantu bakuthi niphelele kunye nani basebenzi ... . . . [... comrades, fellow countrymen and members of the labour movement ...] . . .We need to examine the ability of the current bbudget to advance workers' rights, which, are an integral part of the human rights. I say this because we have just been celebratedting Human Rights Day only just yesterday.
Chairperson, the current bbudget is characterised as a pro-poor bbudget by all, because of its contribution on to the social wage. T Let us say the total social wage for poor households has certainly been certainly substantially increased for poor households, particularly when we take into account that individual households have access to more than one of the social grants.
One may go further and include the provision of schooling, as well as the school fees, free nutrition programmes, etc. The extension of learnership allowances that were introduced in 2002 for another five years as well as the impact thereof on the job training and, skills development is worth mentioning, and co as well as commeanding. The bbudget also commits itself in to a favourable allowance for companies that will include workers lieaving with disabilities.
However, a question arises: Was well and i.e. what about the private sector's role? Will the private sector respond positively by taking the advantage of these initiatives as articulated in their current bbudget?
There will be benefits for labour, duowing e to improvements ion the long- term retirement savings, as well as a further increase of in finance foring in skills development. It is worth mentioning that labour will be amongst the beneficiaries from of the joint initiative on priority skills acquisition, as contained as outlined in Asgisa.
GThe Government's emphasis on the labour- intensive infrastructure spending enhances the sharing aspects of Asgisa, because it has a potential to increase the elasticity of employment creation.
Mphathisihlalo, siyafuna ukusoloko sisiva qho ngonyaka minyaka lei ukubangakumbi xa uHhlahlo -lwabiwo- mali lungathi luyixhasa ngamandla imizamo yokudalwa kwemisebenzi. [Chairperson, we would like to hear every year that the budget considers job creation as one of its priorities.]
The ANC has long committed itself to decent work and living standards in the context of improved equity ownership and management skills, as well as access to opportunities. Hence the bbudget is also ensuresing that through the promulgation of the Co-operatives ActBill co-operatives, as a new entity in the economy, will also have financial support.
In spite of the noble achievements, as stated above, there are a few challenges lying ahead. Aamongst others these is firstly, the ability of the Expanded Public Works Programme to convert short- term jobs into permanent, sustainable, quality jobs. I say this simply because there is an irrefutable assertion that workers are central to the economy of any country. And definitely the ANC commits itself to the full productive potential of our economy to be productive, as we all know.
Tondly, the sustainability and the extension in of the sharing aspect of Asgisa is also another challenge. Whilst recognising that Asgisa is has the intention of sharing the wealth that will be created, we also, as the ANC persuades us to, have to assume collective responsibility for ensuring that such ideals are fully realised.
Kumnandi, bantu bakuthi, xa sisithi urRhulumente makenze le, naleya. ngoko ke Kodwa ke masibambane ngeezandla, sisebenzisane norhulumente wethu, siqinisekise ukuba ezi nkqubo siza nazoibeka, siyavumelaenae ngazo, kwaye ziyaphumelela. [It's easy for us to say that the government should do this and that. We need to hold hands and work together with the government to ensure that all our programmes come to fruition.]Oko sikwenze sisebenzisana norhulumente wethu.
The extent of access by the unemployed to government grants must still be on all of our agendas, particularly those of MPs when they engage in their constituency work.
There has to be enhanced understanding by labour of government programmes so that they can take advantage of such programmes. Of course, another challenge is whether the small business sector will pass on any of the current tax benefits to workers.
Mhlalingaphambili, ndithe makhe mandicaphule nje zibe mbalwa kwezi zinto zithunukayo. Nokuba ezinye izinto zintle, kodwa ke noko makhe sizijonge ezi ziza kukhe zisithi ntsho ngamehlo. [Chairperson, I thought I should mention just a few of the issues that have the main points of contention. Although some of the programmes have good intentions, we should consider those that may cause us problems in the future.]
Organised labour must also take advantage of the substantial budget expansion. I also strongly maintain that they should provide leadership and consistently ensure that all the workers benefit from such expansion. If our country is to ensure human rights for all, our budget has to be integral to that noble endeavour.
Just as we recognise the centrality of workers in our economy, so should we admire the government's recognition of labour, as articulated in the current budget. Let us, however, take outstanding achievements to even higher levels. Iyabulel' ilali. [Thank you.]
Modula-setula le lekgotla, mokgatlo wa PAC o amohela dikabo tsena tsa letlole la setjhaba tsa selemo sena sa 2006. Kabo ena ya matlole e tla ka nako e thata ho batho ba habo rona ba ma-Afrika, ba futsanehileng, ba hlokang mesebetsi, ba phelang maemong a mabe a bodulo. Batho ba ha bo rona ba kenwe ke diketso tsa botlokotsebe mme basadi ba hlekefetswa ka mekgwa e mengata, dikgwebo tsa rona makeishebneng di wele mme di nkuwa ke melata.
Dikaabo tsebo tsena di fihla ka nako eo ka yona boramapolasi ba rona ba ma- Afrika ba tlaletsweng ke naha. Ba bang ba fumaneng mapolasi, empa ba hloka disebediswa. Empa re tshepa hore dikabo tsena tsa matlole di tla leka ho hlokomela ho loka ha a mang a mathata a boletsweng. Mmusmo o tlamehile ho bona hore ditjhelete tsa setjhaba di sebediswa hantle le ka toka.
PAC e re naha ena ya habo rona ena le bokgoni, empa batsamaisi ba yona ke matlaila. Mmuso o tlamehile ho fehla mesebetsi sepheo e le thibela hore naha ya habo rona e se be ya moruo o putlameng (welfare state), moo batho ba phelang e ele mekopa-kopa ya ditjhelete tse mona tsa matheka, tse kgothaletsang bana ba rona hore ba tlatse matlo a rona ka bana ba hlokang bo-ntata bona.
Mmuso o tlamehile ho thibela thekiso ya thepa ya setjhaba ka sena se bitswang privatisation. Thekiso ya thepa ya setjhaba ka mokgwa ofe kapa ofe, e fedisa mesebetsi, e atisa bofutsana, e kenya tlala le malwetse. Ditjhelete tsa setjahaba di lokela ho sebediswa ka tlhokomelo le toka.
Batsamaisi ba tlamehile ho hlokomela hore diphallelo eleng di donation, tse tswang matjhabeng ho phallela ditshebeletso tsa setjhaba, haholo batho ba futsanehileng, di sebediswa ho ya ka ditumellano le dinaha tse re phallelang kgahalanong le ditjhelete tsena tse kgutlelang ho beng ba tsona, hobane re sena bokgoni le boikarabello ho di sebedisa. Ditjhelete tsa setjhaba ha di sebediswe ho phahamisa naha ya ha bo rona. Ke a leboha. (Translation of Sesotho speech follows.)
[Mr M T LIKOTSI: Chairperson, the PAC supports the 2006 national budget. This budget comes at a very difficult time for Africans, many of whom are poor, unemployed and live in appalling conditions. Many people have become criminals and they abuse women in many ways. Businesses in the townships have closed.
This budget comes at a time when many African farmers do not know what to do with the farms they were allocated, because they do not have farming resources. We hope that the money will help solve some the above-mentioned problems and that the government will ensure that there is proper financial management.
The PAC asserts that this country has the resources, but the problem lies with administration. The government must create jobs to prevent the country from turning into a welfare state, where people beg for grants such as the child support grant, which encourages our daughters to fill our houses with children whose fathers are unknown to us. The government must also stop selling state property through privatisation. The selling of state property in any way results in unemployment and the accompanying poverty and diseases.
Directors of NGOs must ensure that donations from foreign countries to help communities are used according to agreements with donor countries, and that they are channelled towards poor communities. No funds should be returned to donor countries because of any organisation's incapacity to use them. Public funds must be used to uplift the people of this country. Thank you.]
Hon Chairperson, hon members, ladies and gentlemen, as South Africans and as part of a progressive humankind, we have a moral and political responsibility to change the society in which we operate, in the interest of a better future for the human species, in particular the poor and vulnerable sections of our society.
Whilst these ordinary masses of our people make history and change society, they find themselves trapped in demeaning poverty and underdevelopment. However, because our democratic movement, the ANC, and the ANC-led government have always prioritised developmental issues concerning these poor and vulnerable masses, and because the ANC-led government remains a beacon of hope for the masses, during the processes of distribution and appropriation of material resources of our country the ANC is always mindful of this hope and faith that the ordinary masses of our people have in our democratic movement and the ANC-led government.
These distribution and appropriation processes are always informed by the Freedom Charter which, amongst other things, provides that South Africa belongs to all those who live in it, black and white, and provides that the people shall share in the country's wealth. Needless to mention, these processes are also informed and guided by our notion of equality, which takes into account the legacy of apartheid inequalities and also reflects race and gender contradictions.
The justice system in South Africa was inaccessible to the majority of the poor and vulnerable sections of our country. The ANC firmly believes that access to justice is essential to any legitimate justice system because it strengthens public respect for the law and gives people confidence in the legal system. It is this belief and the vision of the ANC to improve access to justice for all which has underpinned the appropriation and related processes.
In essence, the Appropriation Bill is a product of the processes which took into account various progressive, political and policy considerations that include bringing justice services closer to all people, particularly rural and township communities; alleviating the onerous burden of long-distance travel to access justice services, which involves redemarcation and rationalisation of our magistrates' courts and High Courts; the intensification of programmes which seek to help the most vulnerable in our society, namely women and children; and strengthening criminal justice system initiatives and efforts.
Let me emphasise that we need to welcome all the progressive aspects of the Appropriation Bill, in particular the funding, which will assist the justice sector in developing infrastructure and capacity so as to further improve access to justice for all. The ANC supports the Bill. I thank you.
Chairperson, budget time is our favourite time of the year, as we can redevise our means to attain our goals for South Africa.
The MF is confident that the R12,1 billion tax cuts certainly have many smiling this year. The MF takes this opportunity to thank the hon Minister of Finance, Mr Trevor Manuel, for an outstanding budget - thank you, sir.
Bringing our attention back to the Appropriation Bill for 2006, the MF is pleased with the 9,58% allocated for appropriation to provincial and local government. We view local and provincial government as key institutions to providing delivery to our people. We applaud the allocation and request the effective dispersal of funds to ensure efficient delivery.
We are extremely pleased with the prioritisation of allocations made to Education and Health. Both sectors are crucial to the upliftment and wellbeing of our people. The increased effort towards adult education and the prioritisation of educating our people should greatly benefit skills development and growth for our economy.
As for Health, with the threat and reality of HIV/Aids, the allocation will benefit those infected, as well as boost the prevention of HIV/Aids. We, however, would have appreciated a bigger allocation to Labour, considering unemployment and our fervent effort to eradicate poverty. It is, however, correct that the bulk of the appropriation of 23,85% goes to Social Development. It is within this sector that our people are in most need; and it is through Social Development that the standard of living will be increased thus metamorphosising the poverty situation.
Another crisis in South Africa is our crime rate, which has been adequately combated by the 12,52% allocation of the appropriation. In respect of disputes globally and our necessity not only to protect ourselves but also to protect the innocent globally, the 9,16% allocated to Defence is supported.
We would have appreciated a larger allocation to Sports and Recreation. The importance of the sector needs to be realised through nation-building and global relations. We do, however, acknowledge the difference in allocation and would like briefly to say that if the foreign debts were written off we would have so much more funds to dispense on delivery and to cater for the needs of our nation. The MF supports the Appropriation Bill.
Chair, once again the hon Minister of Finance has successfully executed his extremely important and difficult task. The various allocations are evidence of the Minister's attempt at a fair distribution of state funds. I wish to compliment the hon Minister, together with the South African Revenue Service, for the meticulous nature in which they went about their business which has resulted in the excess of R30 billion.
Dit is dus duidelik dat die regering se vernaamste probleem nie noodwendig die beskikbaarheid van geld is nie. Die vraag ontstaan dus nou oor die regering se onvermo om die meeste van sy teikens te behaal. Die antwoord hierop blyk te wees dat die goeie werk van die agb Minister en die SAID ongedaan gemaak word.
Hierdie Huis het die afgelope tyd keer op keer voorbeelde gehoor van hoe die regering veral op plaaslike vlak versuim om hul mees basiese funksies te verrig, ten spyte van voldoende geld. Waar l die probleem? Daar is redelike eenstemmigheid hieroor, naamlik dat kapasiteit die primre rede is vir die onaanvaarbare bestedingstendense by sekere staatsdepartemente. Nie eens broodnodige buitelandse finansile hulp word doeltreffend bestee nie, met die gevolg dat sulke skenkings, bestem vir maatskaplike en ekonomiese ontwikkeling, teruggegee moet word, byvoorbeeld die R131 miljoen wat aan Europese organisasies en die R130 miljoen wat aan die EU teruggegee moes word. (Translation of Afrikaans paragraphs follows.)
[It is therefore clear that the government's main problem is not necessarily the availability of money. Hence the question now arises about the government's inability to reach most of its targets. Seemingly, the answer to this lies in the fact that the good work of the hon Minister and Sars is being undermined.
Recently this House has time and again heard examples of how the government, especially at local level, fails to provide the most basic services, in spite of sufficient money. Wherein lies the problem? There is reasonable consensus on this, namely that capacity is the main reason for the unacceptable expenditure trends of certain state departments. Not even badly needed foreign financial aid is spent efficiently, with the result that such donations, for example the R131 million and the R130 million that was meant for socioeconomic development, had to be returned to European organisations and the EU respectively.]
It would appear those are more or less the same departments that expose their inability to maintain healthy financial practices. The Department of Provincial and Local Government's inability to ensure that municipalities comply with primary compliance requirements is no longer acceptable. The hon Minister for Provincial and Local Government is in the habit of being reactive to matters resulting in little or no corrective measures and results, for instance his reaction towards the 48% of municipalities not meeting the submission dates for financial statements as required by the Municipal Finance Management Act.
HIV/Aids sufferers who form an extremely high percentage of the South African population are having a devastating impact on all levels of society, both private and public sectors. Despite the generous financial allocations for the fight against HIV/Aids, we still have to go a long way in setting up an adequate infrastructure to successfully fight HIV/Aids.
Agb Speaker, die afgelope kragonderbrekings in die Wes-Kaap is 'n manifestasie van nie net 'n gebrek aan kapasiteit en die gepaardgaande vaardighede nie, maar ook die afwesigheid van doeltreffende beplanning op verskeie vlakke. Die ekonomiese skade wat in die Wes-Kaap aangerig is, word op R1,5 miljard bereken. Meer kommerwekkend is die feit dat beide die regering en Eskom nie in staat is om 'n aanvaarbare aanduiding te gee van wat die omvang van die toekomstige onderbrekings sal wees nie. Hierdie toedrag van sake bedreig die teiken van 6% ekonomiese groei. (Translation of Afrikaans paragraph follows.)
[Hon Speaker, the recent power failures in the Western Cape are a manifestation not only of a lack of capacity and the concomitant skills, but also the absence of efficient planning at various levels. The economic damage caused in the Western Cape is estimated at R1,5 billion. Of more concern is the fact that both the government and Eskom are incapable of giving an acceptable indication of the scope of future power failures. This state of affairs threatens the target of 6% economic growth.]
The job well done by the hon Minister of Finance ... [Time expired.]
Hon Chairperson, Minister of Finance, hon members and members of the public, I greet you all. Minister of Finance, I would like to congratulate you for the most impressive record set in Budget 2006. The ANC, throughout its term, has been the democratic leader of government, which has preoccupied itself with the responsibility of transforming the South African economy from an economy that has been deeply characterised by inequality, dispossession, racial exclusion and skewed distribution of resources into one of the model developing economies of the world.
Our endeavour as the ANC government was to build a strong developmental economy which would comprehensively and effectively seek to redress the twin evils of apartheid, that is poverty and joblessness, which continue to exacerbate the structural gap between the developed few and the underdeveloped masses of our people.
Key to this economic policy approach has been to ensure that all people have equal share in the wealth of their country. At the same time, we have to ensure that we develop and sustain the economy.
We have to acknowledge that our economy is booming to the dismay of many of our detractors. However, we are prepared to move on to extend the net to other sectors of our economy and to improve and sustain this positive outlook on the economy.
For the past decade we have seen an increased growth in the economy by 4,9%. We have seen additional opportunities being made available for the previously marginalised groups, including blacks, women, youth and the poor. There has been lower government debt and inflation. Our labour market reforms have immensely improved our labour relations and there has been more certainty, high stability and high levels of confidence within our markets. We are proud to say that we have now decreased the debt burden of our country.
Today as we journey into the second decade of democracy, we are proud to highlight impressive breakthroughs made by the government in its effort to respond to the policy dilemmas and fundamentals.
The Constitution of South Africa places on government the mandated responsibility to provide basic services to all its people. For the larger part of society, these socioeconomic rights have never been as justifiable as they are today.
We have to recall that section 26 of the Bill of the Rights deals with the obligations of the state to ensure progressive realisation of the right to housing and section 27 highlights the right to health care, food, water and social security; whereas the right to education is enshrined in section 29.
The significance of this constitutional provision is clearly enunciated in the RDP document adopted by the democratic government. This has successfully highlighted key priorities for government and the impact on the fiscal system.
For the past ten years government spending has been focused on the redistribution of resources from the privileged few to the previously disadvantaged. Specific challenges have been identified with this approach. However, as long as it satisfied the constitutional obligation, it had to happen.
Firstly, large chunks of the government's budget had to be cut and redirected to address the basic needs of our community. Although this approach was extremely beneficial to the many who were locked in the poverty trap and the cycle of unemployment, it had its negative consequences arising from our slow growing economy, which was steadily readjusting to the volatile global markets.
But the major challenge lies in the analysis and questions raised by many of the economies across South Africa. The question of whether our booming economy is able to effectively respond to the redistributive demands and obligations that are entrenched in our Constitution and the economic policies still stands. It is, however, important to note that the milestones we have achieved in the first years of democracy have set an outstanding record of performance for this country, both economically and socially, especially in terms of delivering the hard services.
Notwithstanding the impact made by these services we must acknowledge that in some instances it has resulted in unforeseen circumstances, like the increasing high rate of dependency and the extension of racial inequalities.
Our social spending has been characterised by the redistributive thrust of our economy - and in many cases this has had a negative impact - which is quite often output-oriented, rather than input driven. Half the time, budget allocations and intergovernmental grants are linked to service delivery outputs.
It is time that government translates budgeted allocations to actual service delivery because it will not be sufficient for government to argue that it has met its obligations in terms of socioeconomic rights through the allocation of sufficient funds for health, education and other forms of service delivery. Let me refer to quite a few examples in education, health and housing. We have seen a dramatic drop in the quality of services provided to the people. This has been the case despite the fact that government has increased its allocation of funds to address these sectors.
It is thus clear that redistributing budget allocations does not immediately result in redistribution of service delivery outputs, as anticipated initially. Furthermore, it suggests that the binding constraint was not purely financial, but rather management capacity, especially on capital projects.
This can be coupled with the inability to spend effectively and this has been a phenomenon in most of the provinces where high budgetary allocations did not automatically result in high delivery rates.
In the light of the above it becomes a necessity to consider a budget reform at all levels especially the introduction of budget reforms in all spheres of government to specifically oversee the introduction of performance budgeting, which has a potential to improve public sector efficiency and effectiveness. The ANC supports the Bill. I thank you. [Applause.]
Mr Chairman, hon Minister, hon members, the DA welcomes the broad set of tax breaks announced in the budget. In particular, we welcome the reduction of the tax on retirement funds from 18% to 9%. This move has long been called for by the DA, and will positively affect retirement funding and increase the present low savings rate.
In my speech I will refer to the retirement industry and the second economy. Despite the impact of Aids, increasing longevity pushes up the need for postretirement income. It is generally accepted that pensioners should be self-supporting as much as possible and not be dependent upon the state or, in the end, the taxpayer.
The South African retirement industry is fairly sophisticated and the South Africans that belong to a registered pension fund can consider themselves fortunate. However, millions of South Africans do not belong to pension funds. They traditionally rely on extended family support and subsistence in the so-called second economy.
The plight of the pensioners, especially in the so-called retirement communities, with life membership is also something of grave concern, and I believe that the hon Minister and the Department of Finance are investigating this plight.
The hon Minister, in his Budget Speech, made mention of the fact that social grants contribute to more than half of the income of the poorest 20% of households. In a recent study of the bureau for market research at Stellenbosch university it was estimated that roughly two million people are employed in the informal sector. Lower-skilled and less-educated South Africans have no alternative to escape from unemployment and poverty and are often forced to participate in the second economy.
It is estimated that on its own the second economy employs about 1,72 million people and contributes only 2,1% of GDP. This comprises about 750 individual outlets with an average turnover of R68 000 per month, each employing between two or three individuals on average. Average remuneration per employee is around R1 000 per month, half the minimum required to sustain the average household in an urban community.
Armoede, werkloosheid en lae vaardigheidsvlakke is veranderlikes wat werklike, rele, ekonomiese groei inhibeer. Die Suid-Afrikaanse bevolking, soos talle ander, is besig om snel te verouder. Die openbare en private sektors sal toenemend moet saamwerk om volhoubare ekonomiese groei van tussen 5% en 6% te laat realiseer.
Dit sal gewis nie maklik wees nie, aangesien die feit dat groot gedeeltes van die Suid-Afrikaanse bevolking wat hul in die sogenaamde tweede of informele ekonomie bevind, in die verlede uiters beperkte toegang tot die formele ekonomie gehad het. Dit is dus gebiedend noodsaaklik dat die formele sektor deur middel van mentorskappe die hand na die agtergeblewe informele sakesektor uitsteek.
Lande wat die afgelope drie dekades ekonomies vooruitgegaan het, was aantreklike beleggingsbestemmings vir beleggers. Internasionaal aanvaarde ekonomiese norme is geerbiedig, soos byvoorbeeld vrywillige koper en verkoper. Korrupsie in geen vorm is geduld nie, met 'n onafhanklike regbank waar daar geen staatsinmenging van enige aard rakende die administrasie of regspleging plaasgevind het nie. Die DA versoek dat daar indringend na wyses gekyk word om die pensioenbedryf in die algemeen uit te bou, met dien verstande dat meer Suid- Afrikaners daaraan kan behoort, en dat die informele sektor van die ekonomie deur middel van aanvaarde internasionale riglyne en sakepraktyke uitgebou word, sodat ook hier aanvaarbare wins- en groeimarge sal realiseer wat tot volhoubare ekonomiese groei en welvaart die bre bevolking sal lei. (Translation of Afrikaans paragraphs follows.)
[Poverty, unemployment, and lower skills levels are variables that hamper actual, real economic growth. Like many others, the South African population is aging rapidly. The public and private sectors will have to increase their collaboration in order to achieve sustainable economic growth of between 5% and 6% percent.
This will certainly not be easy, given the fact that the greater part of the South African population which participates in the so-called second or informal economy has had extremely limited access to the formal economy in the past. Therefore it is vital that the formal sector should reach out to the disadvantaged informal business sector by means of mentorship programmes.
Countries that have prospered economically in the past three decades have been attractive investment destinations for investors. Internationally acceptable economic standards such as willing-buyer, willing-seller were maintained. Corruption was not tolerated in any form, with an independent judiciary where there was no interference from the state whatsoever regarding the administration of justice.
The DA requests an in-depth consideration of ways to expand the retirement industry in general, providing that more South Africans will be able to join, and that the informal sector of the economy will be expanded by means of accepted international guidelines and business practices in order to achieve acceptable profit and growth margins here as well that will lead to the sustainable economic growth and prosperity of the population as a whole.]
We face a number of formidable obstacles. At present our tax base is relatively small; approximately 4,3 million out of a population of 44 million people pay income tax. Unemployment is more than 30%. Our domestic consumer market is small. Our geographic location is not close to the EU, North America or the East. This contributes to additional transport costs for our exports.
Furthermore, some of our neighbouring countries, particularly Zimbabwe, experience an unacceptable inflation rate that runs into the 100 percentiles. The DA, therefore, calls upon government and the private sector to leave no stone unturned in generating a favourable economic climate, an essential prerequisite for future sustained economic growth. The DA supports this budget. I thank you, Mr Chairman. [Applause.]
Hon Chair, hon members, the thrust of this debate is about appropriating money for the state to be able to meet its requirements. These allocations should be linked to the mandate we received from the people of South Africa, guided by the Freedom Charter, the January 8 Statement, the national and local government manifestos and, lastly, the state of the nation address. This mandate is underpinned by the drive to eradicate poverty, create jobs and ensure that growth is shared amongst all the people.
The Department of Public Enterprises has a central role to play in terms of fulfilling this mandate, through its oversight and shareholder/manager role with regard to state-owned enterprises. The restructuring of state-owned enterprises seeks to promote economic growth, socioeconomic development and ultimately a better life for all. The ANC believes that this remains the role of SOEs in terms of their being central to the development of the state.
Thus it is important that the state remains the main shareholder in these enterprises in order to drive the national agenda of democratic revolution. It is our belief that these strategic areas should not be left to the market forces as they are unable to, on their own - and have no track record of doing this - redress historical imbalances.
The ANC believes that our state-owned enterprises can be more effective and efficient. Therefore we are supportive of the programme to restructure these entities to meet their developmental roles. However, we are equally adamant that such interventions should not be to the detriment of our strategic objectives, namely creating jobs, eradicating poverty and creating a better life for all.
The Department of Public Enterprises has been on track in ensuring that the state drives development through the public enterprises. The appropriation for the Department of Public Enterprises, with the exception of the R2 billion that has just been allocated to Denel, as Comrade Chris Gololo outlined, has remained more or less constant, which points to the DPE's sound financial management.
To a certain degree, the same cannot be said of all the state-owned enterprises. As we have stated before as the Portfolio Committee on Public Enterprises, we would have preferred that the various turnaround strategies be implemented earlier by these SOEs. The case in point is Alexkor, which the ANC believes can play an important role in contributing to the economic development of the Alexandra Bay community in particular, and the Namaqualand region in general.
We are extremely concerned about the financial position of Alexkor and welcome the Department of Public Enterprises' continued support for this vital state-owned enterprise.
Kwaye sinethemba lokuba lo mcimbi waseAlexkor, onxulumene nomhlaba nabantu balaa ndawo, uya kuthi wakuqukunjelwa urhulumente, esebenzisa iSebe lezeziMali, akwazi ukunika inkxaso eyiyo khon' ukuze iAlexkor ikwazi ukwenza umsebenzi wayo. (Translation of isiXhosa paragraph follows.)
[We hope that after the matter regarding Alexkor, which has something to do with land owned by people in that area, has been concluded, the government and the Department of Finance will be able to render their support in order that Alexkor could move forward with the task that is expected of it.]
Whilst we continue to be complimentary of Eskom, we feel that the developmental needs of the country will require it to increase its generation capacity. In this context, we welcome their short-term strategy in relation to recent outages. We also support their long-term strategy to meet the ever-increasing demand caused by higher-than-expected growth rates.
We welcome the decision to move SA Airways from Transnet, which allows Transnet to focus on its core mandate of being a freight carrier.
We further welcome the fact that the relevant unions and Transnet management are working together to address the challenges arising from the restructuring process. In seeking to resolve these issues, both parties should be guided by the mandate that was given to the ANC when it was voted into power, that is that they should remain aware of the imperatives to create jobs, fight poverty and promote shared growth.
Ukuxhasa olu hlahlo lwabiwo-mali, singuKhongolozi sithi, Mphathiswa wezeziMali, kulo nyaka-mali utshintsho kubomi babantu malungqamane neemali ezabelwe amasebe ngamasebe. Akufuneki ukuba kuthi noxa amasebe eyisebenzisile imali, ibe inguqu yona inqongophele ebomini babantu.
Kananjalo, ayamkeleki eyokuba amasebe angakwazi ukuyisebenzisa ngokupheleleyo imali abelwe yona. Silindele ukuba kulo mjikelo amalungu ePalamente awenze ngokuthe ngqo umsebenzi wawo wokuqinisekisa ukuba urhulumente wenza kangangoko anakho ukuqinisekisa ukuba iimfuno namalungelo abantu ... (Translation of isiXhosa paragraphs follows.)
[We, as the ANC, would like to support this budget and further say that it must ensure that it meets and fulfils its developmental roles as allocated to the different departments. There should be evidence among people and communities that monies allocated to and used by departments have fulfilled their intended function, which is to change the lives of people.
Furthermore, it is not acceptable for departments not to use funds allocated to them. This time we expect Members of Parliament to fulfil their mandate of oversight to ensure that people's needs and basic rights ...]
... are met through service delivery to the various sectors of our society.
Xa ndiza kuhlala phantsi, sifuna ukuba kulo nyaka-mali kuthi nokuba bayahamba okanye bayavuka ooMam' uMaRhadebe nooTat'uDlamini, baluve utshintsho oluze nolu hlahlo lwabiwo-mali. Kwaye sihlaba ikhwelo kubasebenzi bakarhulumente, nanjengabantu ekugqibeleni abangqamene ngqo nendlela yokuzisa ezi nkonzo ebantwini, ukuba babhinqe omfutshane kuba kaloku urhulumente ophetheyo akasokuze abheke phambili ngaphandle kokusebenza kwabo. Sithi ke kulo umjikelo umbhalo useludongeni. Ngalo mazwi i-ANC iyawuxhasa lo Mthetho usayilwayo. [Kwaqhwatywa.] (Translation of isiXhosa paragraph follows.)
[In conclusion, I would like to say that before and after the Rhadebes and Dlaminis have come and gone, they should experience change brought about by this budget. We call on public servants as the people who directly deal with service delivery, to commit themselves fully because there shall be no progress in this government without their support. This time around the writing is on the wall. With those words I would like to say that the ANC supports this Bill. [Applause.]]
Debate interrupted.