Madam Speaker and hon members, it is easy to be a celebrity; you just fall off your chair, and your name is all over. I wouldn't have got such publicity. Thanks to everyone that was entertained by that.
When the Minister of Finance tabled the Medium-Term Budget Policy Statement on Tuesday, he also tabled, among others, the Adjustments Appropriation Bill. For this current financial year, they were subsequently referred to the Portfolio Committee on Finance for consideration and report, as we hereby do. This is one of the main features of a developmental state - being responsive to the social needs of citizens and intervening by developing and deploying resources where they are needed most and prioritising the needs of the vulnerable in pursuit of a better life.
In terms of the Public Finance Management Act, section 30(2), the adjustments appropriation must provide for a number of things, including unforeseeable and unavoidable expenditure, expenditure already announced by the Minister during the tabling of the annual Budget, the shifting of funds between and within Votes and the roll-over of unspent funds from the preceding financial year. As explained during the tabling and briefing to the committee, this year's adjustments cut across all these categories. We were advised that the request for unforeseeable and unavoidable expenditure amounted to something like R33,2 billion, and the Treasury Committee approved R12,471 billion. We were accordingly informed that those that were not approved did not meet the criteria of being unforeseen and unavoidable. Those that met the criteria are outlined in the Bill, and my colleague, Comrade Arthur Moloto, will be talking to some of them in more detail.
The supplementary amounts that were announced in the 2008-09 Budget amounted to R10,2 billion, and mainly cover the first tranche of the Eskom loan, Public Works' retrofitting of government buildings with energy saving equipments, and Minerals and Energy's Demand Side Management programme. We've seen this in our areas where even municipalities are doing the same - exchanging bulbs with the energy-saving ones.
The other category was that of inflation-related adjustments in terms of section 30(2)(a) of the Public Finance Management Act. These range from the remuneration of civil servants, which takes the largest portion of these adjustments, followed by municipal costs for free basic services due to high energy costs and housing costs.
In line with our Polokwane conference resolution on prioritising education and health, compensation for inflation also goes to Learner Teacher Support Material and the National Student Financial Aid Scheme. Medical equipment and medicine costs are also accommodated in this regard. As we in the ANC have always maintained that inflation hurts the poor, the National School Nutrition Programme is therefore catered for in this category.
The other category of adjustments is that of roll-overs that amounted to R2,361 billion. This is with the understanding that all these adjustments have passed the test of section 30(2)(g) of the Public Finance Management Act.
In tabling our report on this Adjustments Appropriation Bill, we appeal to the relevant portfolio committees affected by these adjustments to follow up during their oversight on whether departments truly deserve the additional allocations and whether the roll-overs have not arisen as a result of poor planning or nonimplementation of their mandates. I raise this matter because with the time at our disposal, we were not able to engage with either the departments or relevant portfolio committees in order to satisfy ourselves with the validity of these requests. We merely relied on the treasury committee and National Treasury, for the Constitution enjoins Parliament to discharge the responsibility of oversight.
I want to take this opportunity to thank members of the committee for their hard work and understanding that delaying this Bill will prejudice the much needed adjustments, which will impact on the lives of the citizens of the country, hence we were able to fast-track it.
The ANC supports this Bill and trusts that the portfolio committees, as I have indicated, will follow up on the issues raised and those that Mr Moloto will be dealing with in more detail. Thank you.
Chairperson, section 213(2) of the Constitution provides that money may be withdrawn and, per implication, be moved within Votes if an appropriation Act is passed by Parliament, and that it be subjected to the conditions of the Public Finance Management Act. Section 30(2) of the Public Finance Management Act states that adjustment budgets may provide for the following: unforeseeable and unavoidable expenditure recommended by a committee of Cabinet; any expenditure in terms of section 16 - for example, the R1,3 billion for the Road Accident Fund, RAF; money to be appropriated for expenditure already announced by the Minister during the tabling of the annual Budget - for instance, the Eskom loan; and the roll-over of unspent funds from preceding financial years.
It is essential that the main Budget and these adjusted estimates support the sound fiscal stance we require to weather ourselves against the global financial storms. We want to applaud the Minister and the National Treasury for not bowing before the Luthuli House powers as yet. We are convinced that if the reported outcomes of the ANC summit are implemented, they will certainly jeopardise our global credibility and damage our monetary regime and the performance of our banking system.
Voorsitter, van hierdie hersiene uitgawes vir 2008-09 is geregverdig, hoewel dit kommerwekkend is dat die toegewysde fondse nie bestee kan word nie as gevolg van, onder andere, swak beplanning, swak vaardighede en swak bestuur. Sulke optrede sal nie help om ons ekonomie op dreef te bring nie. Ons vertrou dat empatie ook teenoor verbruikers getoon sal word, wie ook swaar kry.
Verblydend is die toewysings, onder andere, aan die volgende: gesondheids- en geletterheidsprogramme; skoolvoedingskemas; hoewel ons weet dat dit nie die probleem gaan oplos nie; en sosiale- en maatskaplike verligtingsmaatrels. Hoewel die R20 verhoging te min is, help dit vir seker om die effek van inflasie aan te spreek. Provinsiale en plaaslike regerings kry toewysings wat hopelik dienslewering sal verbeter en natuurlik sal bydra tot ramp- en ander noodverligtingsfondse wat ook noodsaaklik is.
Hoewel die R1,4 miljard vir die 2010 Fifa stadions nie onverwags is nie, is dit nou ekonomies noodsaaklik dat hierdie toernooi suksesvol sal verloop, want binne die huidige wreldekonomie sal die alternatief 'n ekonomiese ramp vir Suid-Afrika wees. Ons moet almal saamwerk om dit 'n sukses te maak. Kommerwekkend is egter weereens die toewysing aan die Padongelukkefonds, wat geld in 'n bodemlose put bleik te wees. 'n Alternatief vir die befondsing hiervan, moet gesoek word.
Die tweede gedeelte van die Denel Saab-waarborgooreenkoms en spesifiek hoeveel nog uitstaande is en wanneer hierdie tot 'n einde gaan kom, is kommerwekkend. Ons is baie bekommerd oor dit en die effek op ons ekonomie. (Translation of Afrikaans paragraphs follows.)
[Chairperson, some of these revised expenditures for 2008-09 are reasonable, although it is disconcerting that the allocated funds could not be spent as a result of, inter alia, poor planning, poor skills and poor management. Such actions will not help our economy find its feet. We trust that empathy would also be shown towards consumers who are also struggling.
The allocations are heartening, among others, to the following: health and literacy programmes; school feeding schemes, although we know that this is not going to solve the problem; and social welfare relief measures. While the R20 increase is not sufficient, it would certainly help to address the effect of inflation. Provincial and local governments are receiving allocations that would hopefully improve service delivery and, of course, would contribute to disaster and other emergency relief funds, which are also essential.
While the R1,4 billion for the 2010 Fifa stadiums are to be expected, it is now of economic importance that this event must be a success, because the alternative would prove an economic disaster for South Africa in the current world economy. We must all work together to make this a success. However, a concern is once again the allocation to the Road Accident Fund which seems to be money thrown down a bottomless well. An alternative must be found.
The second part of the Denel Saab guarantee agreement and specifically how much is still outstanding and when this would be paid is also a concern. We are very concerned about this and its effect on our economy.] Another concern is the obvious lack of capacity and skills within departments to manage and spend their budgets effectively, as well as the lack of focus to spend on essential service deliverables and not to stock the gravy train. It is a concern that not enough is done to empower the private sector to grow the economy and drive employment exponentially.
We need effective political accountability for what is happening in so many departments and trust that Parliament will indeed see to this in the years to come. It is in the best interest of our nation that we pass this Bill despite the many concerns and possible flaws.
Die DA ondersteun die wetsontwerp. Ek dank u. [Applous.] [The DA supports the Bill. I thank you. [Applause.]]
Madam Speaker, firstly, I want to endorse the sentiments expressed by both the hon Nene, chairperson of our committee, and the hon Marais with regard to the various departments' ability to roll out the funds they have and the increased allocations being made to them. This has been a source of concern for the IFP for some time. Many departments get more money than they can spend. This does not leave us, especially Members of Parliament, with much confidence when we see headlines like this in the newspapers:
State hospitals in crisis. State hospitals in KwaZulu-Natal are on the verge of collapse ....
They even say people are dying and ... [Interjections.]
Order, hon member! The noise level is unbearable. We appeal to the Whips to please assist us. Please continue, hon member.
Thank you, Madam Speaker. I hope I will get some injury time. But I hope I don't have to go into one of these hospitals where the health care is putrid, to say the least.
As the IFP, we are extremely concerned that while we may roll out funds, and while the National Treasury and the Cabinet have very good intentions, many departments are really not spending their money effectively and efficiently.
We welcome the fact that there is an increase in the allocation to the National School Nutrition Programme, although it is an inflation-related adjustment. We know and we read in newspapers that for many children who go to school, the only meal they receive is the meal they receive at school. But we would like to see this programme well supported and rolled out.
There is a bit of a concern about the additional R2,5 billion to the RAF. The RAF, I hope the hon Minister of Transport is here, is always in trouble. We don't know when the National Treasury is going to invoke a section whereby, as they did with the Land Bank, they oversee the administration of the RAF because too much money is going into it. They are receiving money, but a number of people are still not benefiting from this.
We will support the Adjustments Appropriation Bill. We really feel that the work of the hon Minister of Health is really cut out for her. The new vaccines to be rolled out to reduce infant and child mortality is a welcomed step, and we trust that all these interventions and monies are going to be well spent in the future. Thank you, Madam Speaker.
Madam Speaker, the ACDP wishes to highlight certain aspects of the Adjustments Appropriation Bill. As pointed out by speakers, we again have a special adjustment of R2,5 billion for the RAF. It seems the RAF continually needs additional adjustments, and this is an issue of serious concern.
Secondly, in view of the escalating building costs, we support the R1,4 billion adjustment to the 2010 Fifa World Cup stadium development, as well as the R600 million for unforeseen expenditure of the last mile access network.
As far as projected underspending is concerned, we note that there is a net reduction in the Department of Defence's 2008-09 baseline in the amount of R1,128 billion. This is explained mainly due to delays in the delivery of strategic defence equipment, and R1,9 billion will be added back in the next financial year. However, the question arises: What impact will our weakening currency have on payments due when this equipment is delivered? Will we have to pay more or will we be tied into a contract that will protect us in that regard?
In general, the ACDP supports the additional allocations for the school nutritional programme, the Occupational Specific Dispensation for nurses, and particularly the R50 million for new vaccines to combat infant and child mortality.
To conclude, I just want to thank Mr Nene for taking the fall the other morning as I would have been in that seat. So, thank you for your good work and for taking the fall for the ACDP. Thank you.
Madam Speaker, the adjustments appropriation is always our eyes into the progress made and the continued agenda of government. The MF is pleased that this Adjustments Appropriation Bill depicts such consistency in government plan.
We hope that the continued intention to loan Eskom funds to address the country's energy emergency shall deliver and relieve citizens from this burden. Furthermore, allocations that shall see our Social Security Programme extended is pleasing. At the same time, we need to revise ways to address the minimal funding to pensioners.
Eskom could so gracefully impose extra tariffs on citizens to foot their electricity bill to assist the energy crisis. Similarly, we need to bring our heads together on how to attain money to allocate a more livable amount to pensioners.
The MF will support the Adjustments Appropriation Bill. Thank you.
Madam Speaker, with my one minute, let me say that the PAC affirms that the Budget is an indication of who is valued in our society. In this regard, we welcome the Minister's observation that the Budget is not about markets and bonds, but about people. The Minister, however, does not adequately address this in his statement. This Budget is not about people. That is why old age pensioners get a lousy increase of R20,00 in this stormy economic sea. The gap between the poor and the rich is widening.
The PAC agrees with the Minister regarding infrastructure development. But it is puzzling that for a country with such huge infrastructure and human capital backlogs, more than R500 billion can be kept for the pension of just 2% of the population.
We can't keep on tolerating budgets that are pro-middle class and pro-rich. The Budget of this country must now start to have a pro-poor economic outlook for the aspirations of the poor majority and for political stability in this country, and, therefore, for the security of all citizens of the country. The increase on ... [Interjections.] Izwe Lethu! [Our Country!] We support the Adjustments Appropriation Bill. [Time expired.]
Madam Speaker, hon members, it's going to be a long day. So, I will be very brief.
The Portfolio Committee on Finance has satisfied itself that the Adjustments Appropriation Bill meets the requirements of section 30(2) of the Public Finance Management Act.
The amount requested to be rolled over is insignificant compared to the total Budget. Allow me to focus just on some few aspects of this Bill. An amount of R500 million is requested to provide short-term relief to committees and households facing undue hardships. I hope that would address the concerns of Dr Pheko. The RAF requires recapitalisation. An amount of R2,5 billion is requested to strengthen the financial position of the RAF. The African Renaissance fund has to be recapitalised for the purpose of acquisition of agricultural inputs for Zimbabwe. The National Treasury assured the Portfolio Committee on Finance that food would be distributed through reputable food agencies. The ANC government has intensified the fight against HIV and Aids. There is an unforeseeable and unavoidable expenditure of R300 million for the prevention of mother-to-child transmission dual therapy programme and shortfalls on treatment programmes.
Recent floods in KwaZulu-Natal and in the Western Cape caused extensive damage to roads, bridges and storm-water drainage systems. An amount of R1 billion is requested to repair this damage. There is an additional amount of R168 million requested by provincial and local government to deal with the rehabilitation of infrastructure damage by flooding and for costs incurred for providing temporary accommodation to displaced people.
South Africa plays a critical peacekeeping role on the continent. Therefore, we have to support all efforts aimed at bringing peace in war- torn areas. The Department of Defence is requesting an additional R100 million for the peace support operation in Burundi.
The ANC supports the Bill. Thank you. [Applause.]
Madam Speaker, hon members, I much appreciate the 15 minutes, and I shall make full use of them.
Let me start by expressing a concern that I believe it is fundamentally important that Parliament be given adequate time to deal with issues such as adjustments appropriation because it is so significant. The oversight role of Parliament is so very important in this regard. Unfortunately, this was impossible this time. But I think we must mark it as a difficulty and try to prevent this kind of issue in the future.
The hon Pheko says that our budgets aren't pro-poor. Well, I will challenge the hon Pheko to walk with me in any township where poor people are in this country. People will recognise me before they recognise him because they know that our budgets are pro-poor and they know what we represent in their lives - to raise the standard of living on a continuous basis. I will challenge him to this any day. I will challenge him to meet us at the polls next year, and we will see where the ANC and the PAC meet. [Applause.]
Just to deal with some of the issues, the matter of the RAF is one that was of course attended to by the Minister of Transport with the Portfolio Committee on Transport. In the second quarter of this year, a new piece of legislation was promulgated. But as we know, there are so many vested interests in this piece of legislation. Those who enriched themselves on the backs of accident victims have not wanted to let go. This is a big, big problem. It is not so much that the RAF is poorly managed. The problem is that there are systemic failures in the system because, as designed, it is fundamentally wrong. What happened in respect of the Swiss citizen and the amount of money that he was able to secure out of the RAF suggests to me that the RAF suffers systemic failures. This is what we have to repair. Legislation is part of the way to doing this. But it is not about a liquidity issue. Solvency issues will arise from time to time because of the design of the RAF. So, we have to repair that.
In respect of pensions and some things that the hon Pheko has been talking about - he even suggested that we might have been completely careless in the way in which we dealt with this matter - let me just explain. When I rose at this podium in February this year to table the Budget, the old age pensions, and it is the same for the disability grants, was R870 a month. We announced an increase of R70 a month then. Normally, that increase would last for a year. So, after that announcement it increased to R940. Taking account of the effects that inflation will have on that now, we added a further R20, raising the pensions to a new level of R960 from 1 October to 31 March 2009.
I hope that we will be in a position to stand here before the country again in February and increase pensions again to take account of the changes. This isn't a change for the year; it is a supplement to take account of the fact that the value of pensions has been eroded by inflation. That is all. It is R20 on top of the earlier R70. That is the context in which I think we have to see the increase.
In respect of the school nutrition programme, again enough was said of it. I want to give the assurance that what my colleague, the Minister of Education, has done with the department in building up the capacity to ensure that we can overcome some of the difficulties encountered in local situations needs to be commended. At this stage, we are just increasing the amount available to ensure that the ravages of inflation on food don't stand in the way of feeding children who, as the hon Singh said, frequently have that as their only meal. But beyond this, the roll-out of the programme to ensure that more children are fed for more days of the year and also moving this programme from primary schools to high schools are going to be very important changes. The money is in the medium-term estimates, and we will take account of that.
With regard to issues of the Denel guarantee, this is the second instalment of the guarantee with British Aerospace, BAE. This is a matter that was canvassed very extensively at the time of the special appropriation last year. The total indemnity provided is R1,6 billion. The first claim was R220 million and now this amount.
On the strategic defence account referred to by the hon Swart of the ACDP, we had to roll out these amounts because we can't take delivery. It is recorded in that way. These issues always arise if you have a Constitution that says that you shall have a defensive capability. Not that you may, but you shall. If you are going to have one, you better have a good one, hon De Lille. There is no point in having a Mickey Mouse one. So, these issues will arise from time to time. But the Bill is largely supported across the House, and I would like to express our sincere appreciation for that support, Madam Speaker. [Applause.]
Debate concluded. Bill read a first time.