Chairperson, hon Minister of Finance, comrades and colleagues, in a developmental state like ours, with a history of neglect of the majority of the people, there can never be enough resources to address the imbalances of the past. The national government will not have enough resources to distribute to local governments.
However, national government allocates the equitable share, unconditional and conditional grants in order to provide constitutionally mandated basic services by local government.
Local government has a responsibility to push the frontiers of poverty further back. It also has a responsibility to have a policy for indigent citizens.
Section 229 of the Constitution therefore enjoins national government to come up with enabling legislation, though only after consulting with the Financial and Fiscal Commission and organised local government to come up with legislation on the Municipal Fiscal Powers and Functions Bill. This requirement has been complied with.
We will remember that similar legislation was passed for provinces and they did not opt to implement it. So, this Bill creates space for those municipalities that may wish to implement this Bill.
The Bill therefore seeks to promote predictability and certainty in respect of municipal fiscal powers and functions, to ensure that municipal fiscal powers and functions are exercised in a manner that will not materially and unreasonably prejudice the national economic policies and economic activities across municipal boundaries.
It also allows the Minister, on application by a municipality or group of municipalities or organised local government, to authorise a municipal tax.
In addition, it regulates the application process for authorisation of municipal taxes in respect of applications received. It also provides for matters that must be addressed in regulations, authorising and regulating the imposition and administration of the municipality surcharge tax.
This Bill spells out very strict measures before a municipality can finally be granted this power. So, it means that this power will not simply be a free-for-all.
The Select Committee on Finance would like to thank the National Treasury officials for their co-operation and assistance during the process of deliberations on this Bill. The committee proposes the adoption of the Municipal Fiscal Powers and Functions Bill.
Debate concluded.
That concludes the debate. I shall now put the question. The question is that the Bill be agreed to.
In accordance with Rule 63, I shall first allow political parties the opportunity to make their declarations of vote if they so wish. Is there any party that wishes to make a declaration? There is obviously none.
We shall now proceed to the voting on the question. Those in favour will say "Aye".
HON MEMBERS: Aye!
Those against will say "No".
HON MEMBERS: No!
I think the "Ayes" have it.
The majority of members have voted in favour. I therefore declare the Bill agreed to in terms of section 75 of the Constitution.
Bill agreed to in accordance with section 75 of the Constitution.