Speaker, in an interview shortly after the hon Minister delivered his speech, I was told by one journalist that the worst nightmare for opposition parties would be if the Budget signalled a shift to the left. He then asked me if my worst nightmare had come true.
I immediately thought about the fact that, with a projected deficit of 7,6%, by any account, this is indeed a left budget statement. It sends a very strong signal that social spending will not be cut during this recessionary period. It makes financial provision for the extension of the Child Support Grant to all children under the age of 18 and provides an extra R900 million for antiretroviral treatment for HIV patients.
In addition, it gives our cash-strapped local government sphere an extra R12,6 billion and ensures that our infrastructure built programme will act as an economic stimulus during this recessionary period.
If this is supposed to be my worst nightmare - I thought to myself - then I would like to state for the record that I believe there is a very fine line between nightmares and dreams.
The fact is that the terms "left" and "right" do not apply in their traditional sense anymore. Proof of this lies in the fact that, on that same day, I heard the economist Brian Kantor - not a leftist by any means - state that he was against rigid inflation targeting, the supposed holy cow of the right.
It is clear therefore that we need an economic policy that does not preserve the status quo of half our people living in poverty, 40% unemployment and rising inequalities.
The ID supports the Medium-Term Budget Policy Statement and the Minister's commitment to reign in wasteful expenditure while expanding provisions to the poor. Perhaps now the hon Minister can start the difficult task of getting the message across to his Cabinet colleagues that it is not the car that maketh the Minister, but their solidarity with the poor. I thank you.
Deputy Speaker, hon members, the UDM is concerned about the effects of the recession on the average South African. People are struggling to make ends meet. Therefore we condemn wasteful and extravagant expenditure by government.
The economic situation is dire, as reflected by the shortfall of billions of Rand in tax revenues, which proves that government simply cannot afford to waste precious funding. The UDM is concerned about the growing Budget deficit. It is not healthy to incur such a long-term debt, which future generations will inevitably inherit.
The UDM is also concerned that the Minister will face an uphill battle against the left wing of the ruling alliance, which seems to be launching an all out attack on the idea of a free market. Now more than ever the UDM believes that a responsible and caring government should also be a government that allows the entrepreneurial drive of the man in the street to flourish. Now is the time to encourage people to create new wealth and prosperity. The UDM support this Medium-Term Budget Policy Statement. I thank you.
Adjunkspeaker, Minister Pravin Gordhan se mediumtermynbegrotingsbeleid getuig van 'n ewewigtige benadering tot ekonomiese beleid en daarmee kan die VF Plus hom geluk wens. Daar flikker egter 'n paar gevaartekens op die horison.
Indien die Minister wil h dat die belastingbetaler waarde vir sy geld moet kry - soos hy onderneem - moet hy nie net korrupsie bekamp nie, maar die onsinnige besteding op irrelevante items, soos oorsese reise in alle staatsdepartemente, vasvat.
'n Verdere voorbeeld: Om R200 miljoen vir die SAUK te gee as gevolg van wanbestuur, is nie waarde vir geld nie.
Daar sal ook indringend gekyk moet word na die sfeer van plaaslike regering, waar stadsrade miljoene rande spandeer op luukse partytjies en konferensies terwyl gewone mense nie kos het om te eet nie.
Daarom is dit net billik dat, as daar verwag word van die belastingbetaler om sy gordel in te trek, die staatsdepartemente dit ook sal doen.
Verder sal die Minister ook indringend daarna moet kyk om die belastingbasis uit te brei, aangesien 7 miljoen mense nie aanhoudend kan betaal vir 50 miljoen mense nie.
Die Minister se vooruitskatting van 'n groeikoers van 3,2% oor drie jaar is 'n realistiese benadering. Wat wel kommerwekkend is, is dat die leningsbedrag oor drie jaar vanaf 23% van die bruto binnelandse produk, BBP, na 41% sal groei. Geld wat geleen word moet terugbetaal word met rente, en dit sal die belastingbetaler wees wat daarvoor moet opdok. Soos dit is, kan die belastingbetaler nie die huidige belastinglas hanteer nie, en dit is sonder die beplande Eskom verhogings. Daarom sal die regering baie meer kreatief moet wees ten opsigte van die aangaan en terugbetaling van skuld. Indien die belastingbetaler, insluitend besighede, verder swaar belas word, sal die skepping van 4,5 miljoen werksgeleenthede oor die volgende vyf jaar bloot 'n hersenskim kan bly. Ons hoop dit is nie die geval nie. Ons bid jou wysheid toe, Minister Gordhan. Dankie. (Translation of Afrikaans speech follows.)
[Adv D A ALBERTS: Deputy Speaker, Minister Pravin Gordhan's Medium-Term Budget Policy Statement bears testimony to a balanced approach to economic policy and with this the FF Plus would like to congratulate him. However, several danger signals are flashing on the horizon.
If the Minister wants the taxpayer to get value for his money- as he is undertaking- he would not only have to combat corruption, but he will also have to clamp down on the senseless spending on irrelevant items, such as overseas travelling, in all of the government departments.
Another illustration of this: To give R200 million to the SABC owing to mismanagement, is not value for money.
There should also be a thorough investigation of the local sphere of government, where city councils are spending millions of rand on lavish parties and conferences, while ordinary people do not have food to eat.
It is, therefore, only fair that, if it is expected of the taxpayer to tighten his belt, the government departments should also be doing this.
In addition, the Minister should also have a thorough investigation with regard to expanding the tax base, in view of the fact that 7 million people cannot continue paying for 50 million people.
The Minister's forecast of a growth rate of 3,2% is a realistic approximation. What is alarming, however, is that over three years the loan amount will increase from 23% of the Gross Domestic Product, GDP, to 41%. Money that is borrowed has to be paid back with interests, and it will be the taxpayer who will have to cough up for this. As it is, the taxpayer is not able to cope with the current tax burden, and this is without the planned increases by Eskom. Therefore, Government will have to be a lot more creative with regard to incurring and the repayment of debt. If the taxpayer, including business, continues to be heavily taxed, the creation of 4,5 million job opportunities over the next five years will have to continue to be merely a pipe-dream. We hope that this is not the case. We pray that you will be bestowed with wisdom, Minister Gordhan. Thank you.]
Deputy Speaker, the executives and hon members, "Sanibonani." [Good afternoon.] Internationally, there is a growing consensus that good governance can promote pro-poor distributive outcomes and also reduce corruption. Budgets are particularly powerful instruments in socioeconomic transformation, redirecting public resources to benefit the poor and other vulnerable groups, particularly in the provision of public services.
The 52nd ANC conference in Polokwane made it clear that the bulk infrastructure tender processes did not take care of the emerging contractors. It also indicated the dying need for the centralisation planning. The latter has been achieved, much as the DA does not see the need for R500 million to be spent on the new divisions.
In the apartheid era, budgeting and budget processes were characterised by secrecy and lack of transparency, with negligible participation by Parliament or civil society. Thank you to the ANC who brought back our dignity and respect. This is indicated by the innovations included, the introduction of the Medium-Term Expenditure Framework, MTEF, and also the establishment of the Minister's Committee on Budgets so as to enhance political oversight and the allocation of resources.
The committees on finance had an opportunity to listen to different public hearings on the Medium-Term Budget Policy Statement, MTBPS. Some presentations were quite informative, while others were neither here nor there.
Let me share one of the perceptions that were raised by one of the presenters. This presenter said, "the patient is in the operation theatre, and the operation went well, but the patient died." The ANC is aware that the country is experiencing an economic downturn, but that doesn't mean that the patient is going to die, rather, the patient is in the recovery room. This means that we are recovering, but recuperation will depend on the commitment and the determination from all of us in this Chamber.
The ANC believes that an individual contribution will contribute towards the survival of the whole, which are our communities. The ANC's programme document, called the Freedom Charter, indicated very well that poverty and inequality must be eradicated. Indeed, the ANC-led government, within the 15 years, has tried to combat the problem, but there is still a lot to be done.
Let me share some achievements. The Expanded Public Works Programme, EPWP, is targeted at creating 1 million job opportunities in 5 years, to be implemented across the 4 sectors. If you listen and compare the network opportunities created in the financial year 2008-09, the total is 568 224, and the cumulative total comes to, within the 5 years, 1,6 million. Indeed, the ANC does not make a wish list when it sets up its programmes or its objectives.
The ANC also promised during its 52nd conference in Polokwane that it would halve poverty between 2004 and 2014. The real annual mean per capita analysis shows an improvement in the incomes of the poorest, rising from R783 to R1 141 in 2008.
The ANC has also acknowledged that the gap between the rich and the poor is increasingly growing. This is a sign that the deep structural nature of poverty and inequality in South Africa has a racial underpinning. It seems also that the lowest rate of improvement that I'm talking about is in the middle-income range.
The ANC-led government has provided appropriate social assistance support to all eligible beneficiaries. As of March 2009, just over 13 million people received social grants, which takes about 5,5% of our gross domestic product, GDP. The ANC supports this, much as the members on my left hand side strongly believe that the ANC shall create a social welfare state.
In 2007, a community survey estimated that people with disability constitute 4% of South Africa's population, and while opportunities have increased, there are still insufficient services and opportunities for people with disabilities to participate equally in economic transformation or development. The Constitution envisages a role for the legislature both in influencing the Budget and exercising oversight to ensure the effectiveness and the efficiency of the economy service delivery.
The ANC supports the Medium-Term Policy Statement. God bless you. [Time expired.] [Applause.]
Deputy Speaker, the ACDP broadly supports the three-year plan which has had to factor in a massive shortfall in tax revenues. We agree that, while borrowing now does seem to be the right thing to do, it is unsustainable in the long run.
We recognise, however, that fiscal expansion and, in particular, infrastructure spending have contributed to long-term capacity and short- term job creation. We welcome the additional R70 billion over 3 years to improve education, health services, the fight against crime, job creation, social services, infrastructure, etc.
Reducing unemployment and addressing poverty must remain our single biggest priority. The ACDP shares the Minister's concerns that the output and outcomes are lagging given the massive investments we are making. We support government's commitment to reducing wastage and achieving greater savings in departments. The ACDP will support the Medium-Term Budget Policy Statement which is presented against the backdrop of shrinking economic growth, a ballooning Budget deficit, and a mounting pressure on the new government. Thank you. [Applause.]
Deputy Speaker, it is ironic that, according to the speech of the Minister of Finance on the Medium-Term Budget Policy Statement, 500 000 people have lost jobs while on 3 June 2009, the President promised that, "between now and December 2009, we plan to create about 500 000 job opportunities." Instead people are left with economic devastation and the human tragedy of job losses.
The Medium-Term Budget Policy Statement for 2009 spells out several issues of concern; the decline of income tax at R21 billion, VAT at R31 billion, and Customs and Excise Duties at R9 billion lower than estimated in February. This leads to the country's borrowing requirement of R285 billion against the R89 billion of the previous financial year.
The procurement system has to be reformed to avoid fraudulent activities in the departments, including R615 million paid to employees doing business with departments. The government is losing billions of Rand on consultants who are not hired temporarily for specific expertise, but are hired to perform the duties of the employed officials - which is a double expenditure.
Finally, there is a concern with regard to the exorbitant salaries of municipal managers, their expensive vehicles and their highly-paid bodyguards. These have to be monitored during these hard times. I thank you. [Time expired.]
Deputy Speaker, the MF strongly believes that the deficit will have tremendous implications for and a negative impact on service delivery. The austerity measures such as saving schemes and reprioritisation of departmental programmes, non-core versus core functions, as a way and means of instilling financial management and discipline are welcome.
The MF feels that the austerity measures are not adequately addressed in all the areas of government, including the executive, like going on insignificant international trips, etc. However, the MF believes that this is a good initiative, but it should start from the executive level where more funds are spent.
KwaZulu-Natal is heading towards an overdraft of R4 billion as a result of poor financial planning. This has a detrimental impact on the money that is budgeted for service delivery. This means that less money is spent on service delivery and more on the executive, whereas, in actual fact, it is suppose to be the other way around. This will assist government if it is serious about transforming the economy and restructuring the public service and economic recovery. The MF will support the Medium-Term Budget Policy Statement.
Deputy Speaker and hon Members of Parliament, the world has experienced the worst financial and economic contraction, some say since 1930, others would say 1992 or 1993. Although the medium-term growth is low, South Africa's good economic choices over the past decade have allowed it room for the bold response that was presented in the Medium-Term Budget Policy Statement, MTBPS, by the hon Minister of Finance, hon Pravin Gordhan.
The Minister has tabled a series of policy measures that should contribute towards pushing back the frontiers of poverty. The Minister of Finance, in his foreword on the MTBPS, quoted the constitutional vision that enjoins us:
... to improve the quality of life of all citizens and free the potential of each person as we build a nation based on democratic values, social justice and human rights.
This is in line with the ANC's vision of creating a better life for all, understanding the challenges of confronting decades of subjugation, unemployment and the widening gap of inequalities between the rich and the poor. The Gini coefficient has now moved beyond 0,5 signalling the worsening inequalities.
In the past few months, an estimated 500 000 jobs have been lost, adding to the already high unemployment rate. This only serves to increase the challenges that face South Africa as a developmental state. That is why the ANC at the 52nd National Conference resolved to capacitate and build a developmental state that today has set bold policy measures to enable South Africa to respond to the changed economic environment and construct a more robust platform for growth as the world economy recovers.
In fact, the International Monetary Fund, IMF, believes that the world economy is beginning to turn the corner. This MTBPS enjoins the government to ensure that limited resources are utilised to produce maximum outputs without compromising the quality of services delivered.
An additional Budget of R78 billion over the Medium-Term Expenditure Framework, MTEF, is certainly most welcome. As the ANC, we congratulate the Minister for not revising down the Budget estimates, but boldly keeping them intact and ensuring that the priorities of the government are advanced to ensure that rural development, amongst others, is firmly placed on the agenda of service delivery.
The challenge facing the ones robbed of their land is the absence of a budget for land restitution and the creation of new farmers. Obviously, rural development cannot be relegated to one department as all departments have a role to play, including the Department of Economic Development, so that those who want to remain in the rural areas are allowed to do so. Many beneficiaries of land restitution have to wait for years before they can be compensated because of lack of budget. This is unacceptable.
We invited the Human Sciences Research Council, HSRC, who shared their warm appreciation for the vision and MTBPS, although they raised certain reservations. One of the reservations, amongst others, is funding for health.
The ANC acknowledges the MTBPS for taking into account the importance of local governments by ensuring that the Municipal Infrastructure Grant, MIG, grows over the MTEF period. It may not be enough, but it will go a long way in ensuring that, one day, there will not be much difference in infrastructure development between rural and urban areas.
The commitment of this government in creating sustainable and descent jobs is very clear in the MTBPS, if you look at the budgetary commitment for infrastructure.
The strategy and tactics document states:
The central task in the current period is the eradication of the socioeconomic legacy of apartheid; and this will remain so for many years to come. However, the establishment of a government based on the will of the people, progress in the transformation of the state, the codification of rights and implementation of progressive socioeconomic programmes represent a major change in the sociopolitical environment.
I would like to take this opportunity to thank members of the Standing Committee on Appropriations, across political parties, and staff for their support in ensuring that the MTBPS report was produced timeously and adopted unanimously by the committee members.
I also thank my secretary for going the extra mile to ensure that everything ran smoothly. The ANC support the MTBPS. I thank you. [Applause.]
Madam Deputy Speaker, hon Ministers and hon Members of Parliament, South Africa, like a number of other emerging economies, finds itself in a recession. Our tax revenue declined form R740,4 billion to R657,5 billion, while expenditure decreased from R843,3 billion to R841 billion. Budget deficit increased from an estimated 3,8% to 7,6% of Gross Domestic Product, GDP.
The DA agrees with the hon Minister of Finance that the increase in the Public Sector Wage Bill, which is higher than the official inflation rate, may lead to higher inflation pressure. Another inhibiting factor is the possible escalation in the price of electricity of 45%, which will adversely affect the entire economy. In a nutshell, further job losses are inevitable.
We compete in a global market where a competitive advantage of manufactured goods is influenced by the cost of energy. For instance, it's estimated that the cost of producing one ounce of gold will increase by 30% if the price of electricity increases by 45% in three years. At the current gold price production it will no longer be viable, leading to mine closures and job losses.
The greatest threat to the present South African economy, however, is unemployment. Estimates of job losses vary from 20% to 40%. Chronic unemployment has become a fact of life to millions of South Africans. It was estimated that in June 2004, 4,1 million workers were without jobs. What we need is an economic policy that makes South Africa independent from, and not dependent upon social grants.
More than ever before, we need a broad, holistic and strategic economic policy and leadership, and not irresponsible populist verbal attacks on our current fiscal and monetary policies. It appears that the Congress of South African Trade Unions, Cosatu, and the African National Congress Youth League, ANCYL, are determined to question the credibility of a senior member of Cabinet whose portfolio relates to planning, rather than to provide solutions to alleviate poverty, improve service delivery, curb the breakdown in law and order, and retain the independence of the judiciary - key components for sustained future economic growth.
The DA is in a position to provide a viable alternative economic policy. We acknowledge that apartheid was wrong. It used race to discriminate, embitter and drive millions of South Africans apart. Let us not repeat the mistakes of the past. Let us create an open society with equal opportunities where choice and merit are used, and not race quotas and cronyism, to provide an economic environment with positive growth and employment.
Incessant government intervention inhibits economic growth. The core function of the government is to co-ordinate and regulate. We need an effective and efficient public sector, free of corruption, which endeavours to develop our human capital, not to enrich a small close - knit lite with political ties to the ruling party. I thank you. [Applause.]
Hon Deputy Speaker, Ministers and Deputy Ministers, fellow colleagues, central to our developmental agenda as the ANC, the leading party in government, is the mammoth task of ensuring that all South Africans are provided with an opportunity to pursue economic growth, development and redistribution so as to realise a better life for all.
Our government's fiscal policy is the axis around which this developmental mandate orbits. It enables us to deliver on this mandate by providing resources in a manner that is sustainable and that complements the much- needed stability of the economy. As the ruling party, our beloved organisation the ANC has, since coming into power, striven for the realisation of a strategic perspective of contributing to a stable economy, which we understand to be crucial for creating an environment in which job creation can accelerate, entrepreneurial activities can flourish, and companies and households can invest with confidence.
The current global economic contraction has placed all governments' revenues under severe pressure at a time when economies require fiscal support the most, and at a time when liquidity is very scarce. As a result of our sound countercyclical fiscal policy, unlike many other countries in the world where budget deficits have increased, our healthy public finances enabled us to support growth and spending on infrastructure and social services.
In fact, our fiscal response to the economic recession is regarded as one of the largest in the world. The fact that our fiscal and monetary policy cushioned the impact of the budget deficit, which we are all aware moved from 1% of our GDP in the 2008-09 financial year to a projected deficit of 7,6% this financial year, is a much-welcomed reaction and confirms the correctness of the fiscal path we have opted for as the ruling party. We regard this development as a positive step forward towards the realisation of our massive programme to build economic and social infrastructure.
As the ANC we concur that the current expenditure trend will widen government borrowing requirements in order for the government to continue with its noble agenda of bettering the lives of our people. The fact that we entered the economic downturn with a budget surplus is a big plus for us as it creates space for us to continue with our long-term investment plans without having to worry too much about the recession's impact on such plans. It is in the same context that, as the ANC, we support the projected consolidated borrowing requirement of R285 billion.
The ability of government to finance its expenditure programme in a sustainable way is a very central principle of any fiscal policy. A key indicator of sustainability are debt-service costs. Hon Speaker and respectable House, if these costs are left to rise as a percentage of GDP over the long term, we will find it difficult to stick to our expenditure programme. To avoid the possibility of such an occurrence, we urge the Ministry to ensure that related spending is driven by real physical investment projects that will assist us to create jobs that will lead to growth in household expenditure, that will lead to injections to the tax revenue and that will make a positive contribution to the much-deserved economic growth.
It is our belief that such an approach will enable us to treat borrowing as a temporary solution that cannot be allowed to burden generations and inhibit future growth and service delivery. We agree that sustaining higher borrowing will lead to our having spiralling debt costs and eventually to a costly adjustment through lower spending on service delivery or, the most unfortunate situation, to increasing tax rates. This might have a very serious adverse effect on economic stability and growth.
Central to our attempt to curb a budget deficit will be the oversight capacity of both the National Assembly and the National Council of Provinces. As cited in the report of the Standing Committee on Finance, it is our submission as the ANC that, inter alia, the proposed measures be adhered to. The intended expansion of public sector capital expenditure is seen as a good enabler for economic productivity capacity, which will empower the state to continue providing required services and goods.
The expansion in public infrastructure expenditure is also welcomed as an initiative that will enhance the government agenda of economic growth and transformation of the economy in order to create decent work and sustainable livelihoods. We are convinced as the ANC that the newly introduced Ministries of the National Planning Commission and of Performance Monitoring and Evaluation will assist us in dealing with the problem of integrated implementation of all earmarked infrastructure programmes.
Indeed, our economic and social development is about our collective commitment as government, the private sector and civil society to realising the cited priorities of our government. It will be of the utmost importance to work together. Working together we can do. "Eendrag maak mag." [There is strength in unity.]
Hence, it is necessary for all of us to pay tax. Tax revenue has emerged as the key contributor to national income. Therefore it is extremely important for all taxpaying South Africans and companies to prioritise the payment of tax. In order to cater for current development needs and narrowing the worrisome budget deficit we really need to double our efforts and do things differently to boost tax revenue. We therefore welcome the tireless efforts in the form of penalties that are to be introduced by our hard-working, South African Revenue Service, Sars team. As commanded by the holy book, let's make sure that we owe no man anything and continue to shower the downtrodden with our love by abiding by the law by paying tax.
Taking our cue from the high-growth strategy studies conducted on 13 economies, we must use the five established growth reasons to further harness the economic moment we are currently in. These are: shifting resources to labour-intensive sectors; having fiscal and monetary policies that promote balanced, sustainable growth; increasing competitiveness, raising productivity, lowering costs; having trade and industrial policies that lower costs and create jobs; and improving public-sector performance and service delivery.
As the ANC we support the Medium-Term Budget Policy Statement, the MTBPS, and remain convinced that it is a budgetary and fiscal declaration of intent that has the full potential of ensuring that collectively we deliver on our mandate as assigned by the South African majority. Indeed, this MTBPS is an appropriate foundation for an economically sound Medium-Term Expenditure Framework, MTEF. Ke a leboga, Mmusa-kgotla. [Thank you, Deputy Speaker.] [Applause.]
Deputy Speaker, hon members, allow me firstly to thank all of the speakers for their very valuable contributions and for their support of the Medium-Term Budget Policy Statement, MTBPS. I must say, we could have saved a lot of time if they had only said, "we support", but I understand that this is a debating chamber, and so we have to debate!
Allow me also to thank the heads of the various committees: Mr Mufamadi, Mr Sogoni and Mr De Beer from the NCOP for their contribution towards implementing the new role that Parliament has and for their thoughtful approach to what we have before us.
Today is actually the day on which we - this executive that sits on my right - have been in office for six months. You can see that, in a very short six months, we have had a crisis, we have had a response to that crisis, and we have had some very insightful contributions from the ruling party and others on how best to manage that crisis so that South Africans, whether they be rich or poor, can actually cope with it much better.
In essence, I think what we would like to say to South Africa today as we debate the MTBPS, is that we reiterate the fact that we will deliver on our priorities as government. These priorities are: better health care; better education; more work opportunities - notwithstanding the current loss of jobs; our focus on rural development; and our determination to eliminate the crime and corruption that so bedevils South Africa.
We are saying that we will spend the R78 billion allocated over the next three years in a prudent way and take into account all of the many factors that have been raised by all the parties that have spoken here today.
We are also assuring South Africans and this House that the prudence, which has marked our previous management of finances, will continue to characterise the way in which we approach our responsibilities. We want to assure you that South Africa's fiscus is in good hands - that being the hands of Cabinet as a whole - and that we are very mindful of the tough situation we find ourselves in, and of the responsibilities that we carry.
Notwithstanding the difficulties that we have, we are also mindful of the fact that we have to take South Africa back on to a growth path. As the MTBPS said itself, President Zuma is quite determined that we don't just go back to the old norm, but that all of us, as South Africans, contribute to finding a new way of growing our economy to create many more jobs for many generations of South Africans who have been excluded from this possibility.
We are also committed - and we welcome the commitment of all of the parties in Parliament - to stopping waste and corruption, getting value for money, and to ensuring that the 1,5 million civil servants that work in government will join us in this particular campaign.
Above all, I think we need to send a message to South Africa that we will look after people who have lost their jobs and help them to either get retrained or to benefit from the UIF or from other measures that are available from the state.
We also want to send a message to the poor that their social grants will not be cut as far as we can help it, certainly not for the foreseeable future, and in fact we want to protect their income so that they can continue to have the benefit of state support.
We also want to send a message to our small, medium and large businesses, and the entrepreneurs who manage them, that they need to become a lot more innovative and bold - notwithstanding the climate we find ourselves in - and create jobs which will ensure that South Africans can have the dignity of a job, rather than just being dependent on welfare.
Let me also then give you some context. There was a G20 meeting over the weekend in St Andrews. Those of you who are golfers will know that St Andrews is supposed to be the home of golf. All I could do was stand at a distance and watch the golf course. I am sure that there are people in this Chamber who would have enjoyed being on the green grass.
Arising from that G20 meeting, a set of messages begin to emerge. The first is that the stimulus has certainly helped the world to cope with this recession better than what it would have. Our own efforts at a stimulus package - if you want to call it that - have helped South Africa as well.
The second message is that there is a recovery on the way, but it is a very cautious recovery. All of the graphs around the world are ticking upwards. But that ticking is a very gradual one; it's a very small one and no one can say for certain that it will amount to the "V" that everybody would like to see.
The third message is that there is agreement that the exit strategy that we all speak of and that some are beginning to venture towards, is not at our doorstep just yet. There needs to be continuous co-ordination within the G20 and around the G20 to ensure that we don't have the "W" that Mr Rubini and others spoke of.
It is of particular concern for us in South Africa and other developing countries if developed countries randomly exit from their stimulus strategies, as that could actually have a devastating effect on developing countries.
The fourth message is that there is a discussion going on now in the G20 and in other quarters which says that we need a new growth path, not just for South Africa but, indeed, for the world as a whole. There needs to be greater inclusivity, more balance in a multiple sense and the necessity to look for new what I call sources of growth.
We also talked about climate financing, but only to decide not to talk about it too much. There is still a huge debate going on about who bears responsibility for the climate challenges that we face, who should support the developing countries and how, in respect of both adaptation financing and mitigation financing, this support should be rendered.
Finally, there was a lot of discussion around regulation of the global financial system, around bonuses and some of the issues that hon members have actually raised here.
More specifically, I think we need to agree with members that we need to be cautious; we need to stabilise our economy; we need to ensure that we lay a new basis for the way in which South Africa grows. But laying that new basis is not going to come from one side of the House or from one social partner; it has to come from all of us, and that is what I hope this House will begin to focus its mind on and ensure that we get the debate that we require.
The new growth path that we speak of provides an opportunity for all sides of the House to co-create this new growth path. We have several parties who have said, "we have ideas". Well, let us try to create a forum where those ideas can be shared and let us tap into the creativity of all South Africans so that all of us can actually benefit.
We all agree with Mr Koornhof and others that our economy needs to be more competitive and that our small and medium-sized enterprises, SMEs, need to be supported more. We also agree with Mr Oriani-Ambrosini that we actually need a balance between spending, saving and debt management at the household. But there is no one answer to all of these things. There is a new balance that is required. There are times when we need to spend more and there are times when we need to save more. As the Christmas season comes up, that's the balance that we actually require.
We agree with Dr Rabie that the 45% electricity tariff increase is not the ideal for South Africa. The assurance that we, as Treasury and other departments, can give is that there is a collective in government that is working very hard under Ministers Hogan and Peters to ensure that we minimise the impact and tariff increase itself. We can also assure you that that work will actually carry on.
Let me assure you that the deficit is going to be managed. Debt is going to be managed very carefully. While we are also concerned about imposing upon future generations, these are, unfortunately, necessary things that we have to do to make sure that government can meet its commitments and the expectations of our people as well.
I want to agree with those colleagues who talked about service delivery and the need for improvement. The ruling party does not tolerate nepotism. It will not tolerate cronyism and wants to fight corruption as eagerly as anybody else.
I think what we need to focus on is, not who is better than the other, but rather on generating a collective commitment in this House, signed by all 400 members, in which we undertake to do everything each of us can do - regardless of the political party - to create a new culture in this country. That's what we need. Not competition about who has the better idea. [Applause.]
So, let me throw out an offer to all of us: let us find a way - and perhaps the whips of the parties need to meet to discuss this - to create the basis for a collective agreement on how we could fight corruption in this country in all its manifestations. Remember - and I repeat this - it is not just public servants who are corrupt; corruption comes from all forms and sides of our economy. It requires a total cultural change in terms of the way we approach business in South Africa and particularly, business with government.
So, let me invite all political parties to join us in this campaign. [Applause.]
We also don't want a bloated bureaucracy that does not deliver and that is low in its productivity. Let us also, together with Minister Baloyi, share ideas about how we move from where we are. We want more people to be employed in the frontline of service delivery, as teachers, as nurses, as doctors and as people delivering services rather than sitting behind desks. I'm sure he is going to come back to Parliament and give us more feedback in terms of what we are going to do concretely.
Finally, I want to agree that we urgently need to help Parliament set up the Parliamentary Budget Office. The budget allocations have been made to Parliament to enable this to happen. We would like to play whatever supportive role we can play, because this is the only way in which Parliament can hold not only the executive, but also various departments, to account and understand what is involved in budgets and ask people the right kinds of questions.
Oversight by Parliament takes another step through this current process with the Money Bills Amendment legislation allowing Parliament, through the appropriation committee - as we will discuss in a moment - to look into whether and what kind of role Parliament can play in amending budget allocations.
So, Parliament has an important responsibility. We welcome that responsibility and, over the next few years, we hope to work with you to ensure that there is greater accountability.
Once again, my thanks to all of the people who have contributed to the MTBPS and the debate on it. Thank you very much. [Applause.]
Debate concluded.