Chairperson, Minister Peters, hon members, ladies and gentlemen, Lubala is a small settlement about 35 km from Lusikisiki, and a bit more than an hour's drive from Port St Johns.
The road to Lubala cuts through the green hills of Pondoland, with occasional stray cattle sharing the space with cars on the road. The settlement has 83 households, and has been described as one of the poorest areas in one of the poorest provinces in our country.
Last week I was part of the team that, with Deputy President Motlanthe, visited Lubala where government's antipoverty strategy was launched in 2008. The area remains poor and underdeveloped. Our team visited about a quarter of the households and spoke to fellow South Africans who live without electricity, without running water and without modern sanitation or refuse removal.
Nomantombi Mhluthwa is a 74-year-old grandmother, who is the head of a household of three children. Her story of struggling under bitterly poor conditions was repeated by grandmothers in neighbouring households. Health care and educational opportunities for her and for the people of Lubala are limited.
The residents of the little village rely largely on income from social grants and some limited subsistence farming to feed their families. The village consists mainly of children and old people. This is the story of many, many rural areas.
Young people in Lubala struggle to find jobs in their village or in the surrounding areas and often leave as soon as possible, in many cases sending very little money back to Lubala. About 400 km from Lubala is the industrial town of Dimbaza. A decade ago it had about 140 factories providing work for people from neighbouring villages and towns.
By last year there were only four factories left in Dimbaza. As Dimbaza was deindustrialised it left poverty and development challenges in its wake. Many of those displaced by the contraction of economic activity have not found sustainable alternative employment; some have remained unemployed years after losing their jobs in Dimbaza.
In highlighting the challenges that Lubala and Dimbaza pose for us, hon members, we stare our reality, the South African reality, in the face. We seek through our policies and our implementation to change this reality.
There are opportunities to grow the Eastern Cape economy and expand its industrial base. Let me mention one example: The Eastern Cape currently produces about 20% of the country's milk; so, statistically, every fifth glass of milk you drink comes from the Eastern Cape. Almost half of that milk is processed outside the province.
My staff in the department are now working with the milk producers organisation and government agencies to determine whether there is a viable case for more agri-processing capacity in the province. We need to assess how much of this apparent imbalance is due to poor infrastructural development or lack of support for enterprises and how much is due to what you call bottom-line economics.
Hon members and Chairperson, I have spoken about the challenges of one little village in the Eastern Cape and one industrial town, but you will know from your experience that these stories are not unique to that province. Throughout the country in the provinces that each of you come from, as the official unemployment and income data shows, we face significant and, in many cases, very similar challenges.
The Economic Development department strategic plan and budget has to make a difference to the lives of residents in areas such as Lubala and Dimbaza and those in each of the provinces. I believe that the budget we have tabled and gone through today, together with the provincial and local budgets for economic development, can make a positive difference in the lives of our people. The Economic Development Department, EDD, budget allocation is R418 million, which covers the work of the department and certain entities that report to the department.
We have proposed the distribution of the budget as follows: The amount of R25,8 million for economic planning and co-ordination; R18,2 million for policy development work; R11,2 million for economic development and for dialogue; R44,8 million for administration, the work of the Ministry and capital expenditure; R152 million for small business funding through transfers to Khula and the South African Microfinance Apex Fund, Samaf; R102 million for the competition authorities to strengthen their work; and R64 million for trade administration and promotion to the International Trade Administration Commission of South Africa, Itac.
Hon members will see that the larger part of the budget, namely R318 million of the funding, will be transferred directly to entities that report to the Economic Development department. An important part of our capacity will be the partnerships we forge, particularly with provinces and local governments, to tap into the wider pool of knowledge, people and money that exists out there to address the country's challenges.
Last week, I met with members of the Select Committee on Economic Development when we presented our strategic plan and budget. I would like to thank the chairperson, hon Freddie Adams, and members of the select committee for the stimulating and fruitful engagement. I don't know why I'm coming in so infrequently to the NCOP when the engagement is so fruitful. I advised the select committee and we have done some work on the economic development budget of each province and of the main metros for a report that we shared with the members of the executive council, MECs, for economic development. We called them to Pretoria and we said on a PowerPoint presentation, "This is each of your budgets". Last year, these two levels of government, the provinces and the metros, which excludes many of the smaller local authorities, budgeted R6,7 billion for economic development. I'm excluding here the allocations for tourism - only economic development - with the metros accounting for R2,1 billion of this figure. For each three rands that we spend below national level, one rand comes from the budgets of the metros for economic development.
The point of this study was to determine the full value of potential resources for our joint mandate and to work with each other to improve this impact of our spending. If you add the budgets of the national Departments of Economic Development, Trade and Industry, Science and Technology, and Tourism as well as the development finance institutions, we have a potentially large funding resource available and this has to be focused on our priority of development and decent work.
However, economic development is not only promoted through the spending of line departments responsible for this function. The full Budget of the country is a resource we need to tap into.
My colleague, the Minister of Finance, announced in his Budget Speech in February this year that government in all spheres plans to spend R907 billion this year, and R2,9 trillion over the medium term. Over half of this amount goes to provinces and municipalities for education, health, municipal infrastructure and human settlement.
Now, clearly, this money is intended for these functions, but how we spend the money has a dramatic impact on economic development. We can do more for our people if we identify additional opportunities for local procurement by all three levels of government and by other public entities and state-owned enterprises.
To this end we have set funding aside and put it into the economic development budget to establish an office on local procurement and we have budgeted R3,8 million for work in this area. Through the department's programme on planning and co-ordination, we intend to ensure greater synergy in economic development across the different spheres of government.
Our work in partnership with the provinces may be of interest to hon members. We seek to identify the competitive advantages in each province; maximise the employment impact of these provincial strengths and benefit all provinces through exploiting the economic linkages between them.
Some of our work will identify or strengthen corridor opportunities across provinces and projects for economic clusters across sectors and regions. We have built greater coherence between national and provincial development agencies; we have built a strategic relationship with the South African Local Government Association, Salga, and metropolitan councils; and we have worked closely with the National Planning Commission and Minister Manuel to develop special and sector economic development plans, including those for the distressed sectors and regions.
Our work on sector policy will also support the Industrial Policy Action Plan, Ipap, announced by Minister Davies two months ago, as well as rural economic development initiatives. By the end of this financial year, we intend to have reviewed or produced at least five sector plans and ten special plans. National government manages key levers of economic development, including funding for small business development.
On 1 April the Economic Development department, EDD, assumed responsibility for three development finance institutions, namely the Industrial Development Corporation, IDC, Khula and Samaf. If we join their budgets they have in excess of R16 billion available for industrial development, a portion of which will go to business support. Our work will be to ensure that the R16 billion is spent wisely with the best development and decent work outcomes.
We recently announced the R2 million industrial development bond at very attractive interest rates that the IDC placed and which will allow it to expand its resources for job creation. This development bond has been fully taken up by the Unemployment Insurance Fund, UIF, which has placed surplus funds with the IDC.
Nelie Kok and his wife live in Keimoes, a town on the biggest island in the Orange River. They are members of a co-operative consisting of 82 members, which supports 450 people. They are Fairtrade accredited and their products are sold by Fairtrade all over Europe.
Their chief export is raisins and they would like to expand to make use of the 2 000 ha of land that they have, of which only 600 has access to some kind of an irrigation system. What is significant is that they would like to have more control over the value-adding process. In the period ahead, we will examine how well we have assisted entrepreneurs such as Nelie Kok to realise their potential and to create more jobs.
The EDD guides the work of three economic regulatory bodies, namely the Competition Commission of South Africa, the Competition Tribunal of South Africa and the International Trade Administration Commission of South Africa called Itac. The commission agencies have had considerable success in recent months with their investigations and actions against companies that are involved in price-fixing and collusion. Over the past decade, about R1,1 billion has been collected in penalties from companies that have been found guilty of anticompetitive behaviour. The global economic recession has had a damaging impact on employment in South Africa. Even before the recession, our economy was struggling to create sufficient jobs for those South Africans able and willing to work. Faced with these realities and the challenges of very high inequality and deep levels of poverty, we are working on ways to improve the employment performance of the economy and create many more decent work opportunities and better social outcomes.
This work we group under our policy work and we call it the "development of a new growth path". The central idea of this developmental growth path is to enhance the labour-absorbing capacity of the economy; to build the lower carbon emission economy; and to find ways to connect knowledge and innovation to the challenges of jobs and growth.
Through this work we've identified a number of areas where we believe new jobs can be created, namely infrastructure development; the green economy; the manufacturing sector; the knowledge economy activities; the rural agricultural and agro-processing sector; tourism and business process services; the social economy, which includes co-operatives; public sector growth; and the continental and regional economy. We are now working on bedding that down into real opportunities and identifying the provincial dimension.
The green economy, for example, has huge potential for employment creation in the energy, agricultural, manufacturing and service sectors, including ecotourism. Government departments, working together, are pursuing these opportunities in solar, wind and nuclear energy generation; solar heating geysers; biofuels and co-generation; repairing environmental degradation; ecotourism; smart manufacturing; waste management; the regulation of energy efficiency of commercial buildings; and the installation of more energy- efficient equipment.
It is apposite that my colleague, Minister Peters, follows immediately after me because she's been a leading proponent of turning the energy challenge into a green economy opportunity.
In our own budget, we will allocate R2 million for work on the green economy and green jobs and we will mobilise additional resources for investment. The IDC is already investing in a number of green economy projects ranging from solar power plants to manufacturing activities in the green economy.
We are conscious of the number of policy challenges; one of them is in skills development. We are a country with a relatively weak skills base for the modern economy that we are seeking to build. We need to produce more engineers, artisans, technicians and agricultural specialists to strengthen the economy and improve our competitiveness. By the end of this year, we plan to have the core of an economic development institute in place, which will draw together leading economists and development practitioners. It will commission research, seminars and workshops; and create a database of global economic development initiatives and institutions. We will make its resources and ideas available to provinces and use it as a means to develop a common knowledge platform across government.
I believe that there is no contradiction in advocating strong and vibrant competition in the private sector on the one hand, while supporting joint planning, co-operation and sharing to promote economic development, on the other hand. Competition and co-operation are not mutually exclusive; it's about finding the balance. One big part of our work, therefore, will be social partnerships to draw in the ideas of business and labour and to share that with communities.
Last year we hosted a very successful policy platform on rural development in KwaZulu-Natal. By the end of the financial year we will hold an economic development conference, which will also deliberate on the special dimensions of economic planning and co-ordination. For the year ahead, we are planning to develop social dialogue on growth and social equity issues at sector and workplace level so that we can build partnerships at the very heart of the wealth-creating machinery of the economy.
We have established a subprogramme to address the role of productivity, innovation and entrepreneurship in driving economic growth and development. The department will promote workplace productivity agreements and foster entrepreneurial endeavours in the economy, particularly among black entrepreneurs.
In the first month that the EDD was officially established, it took responsibility for co-ordinating government's work within the framework of South Africa's response to the international economic crisis. We have now launched 20 actions in this programme. One example is the training layoff scheme as well as the funding that the IDC is providing to companies and sectors in distress.
I spoke earlier of the challenges of the recession; we are confident that we can repair the damage of the recession and build an inclusive economy. We will maximise the economic development impact only by working together. Each of us has a role to play because the economy is about all of us, and employment growth and development are in the interests of all of us. I thank you.
Chairperson, Minister Patel, hon members of this august House, the National Council of Provinces, in September last year, working together with Ezinqoleni municipality in KwaZulu-Natal, we launched the Safe Illuminating Paraffin Stove Project in the town of Ezingolweni.
As we did that, we were once again reminded of the scale of poverty and underdevelopment that characterises our communities. In particular, what stood out was the plight of one resident who barely had a house to live in, let alone the bare necessities for survival. Working together with business leaders in the area, we were able to offer the lady and her two teenage sons a home and a sense of hope for a better tomorrow.
There was also a story that was shown on television last year of the death of three children from KwaZulu-Natal, who died when the generator they were using exploded. This happened after they had travelled for 10 km to watch the soccer game between our national soccer team, Bafana Bafana, and Uruguay.
It is these tragic events that continuously remind us of the enormousness of the tasks that face the democratic developmental state as it seeks to usher in a new era in energy planning, modelling, forecasting and service delivery.
Tomorrow, 23 April, I will be travelling to Grahamstown at the invitation of our national oil company, PetroSA, to participate in the opening of classrooms at a primary school that was established by the nuns of the Anglican Church in 1844. The new structure will provide a science and computer laboratory for about 200 children.
We are also going to offer these children a sense of hope and a promise of a better tomorrow. To date, PetroSA, a subsidiary of the Central Energy Fund, has spent a total of R260 million on such initiatives throughout the country.
For us to achieve social justice, we will continue with the implementation of the Integrated National Electrification Programme as a vehicle for social change. In spite of the challenges facing us as a department in relation to the implementation of this programme, we have made significant progress. I must indicate that, out of the 237 local municipalities, 128 of them will eradicate existing backlogs with regard to the electrification of formal households by 2011 and 2012.
The majority of these municipalities are in Gauteng, North West, the Western Cape, Free State, Mpumalanga and the Northern Cape. Accordingly, my department will prioritise the extension of the rural electricity network capacity to ensure that the rural communities of Limpopo, KwaZulu-Natal and the Eastern Cape achieve the same level of electrification as the provinces mentioned above.
To indicate our commitment to the goal of making sure that we prioritise these provinces, 64% of the total allocation of R2,8 billion has been allocated to the three provinces. In this regard, we have identified the municipalities that have backlogs of less than 5 000 to achieve universal access to electrification. In the Eastern Cape, we are targeting about 14 municipalities with a backlog of less than 5 000; in the Free State it is 17; in Gauteng it is 4, in KwaZulu-Natal it is 11; and in Limpopo it is 18. In Mpumalanga it is 4 municipalities; North West, 11 municipalities; Northern Cape, 26; and the Western Cape, 23.
You would have understood that these are the municipalities with backlogs of less than 5 000. Those with backlogs of more than 5 000 are as follows: In the Eastern Cape it is 24; Free State, three; Gauteng, eight; KwaZulu- Natal, 40; Limpopo, seven; Mpumalanga, 14; North West, 10; Northern Cape, one; and the Western Cape, two.
Out of the totals, there are 128 municipalities with a backlog of less than 5 000, and 109 municipalities with a backlog of more than 5 000. As regards the total budget for these municipalities in the year 2011-12, the Eastern Cape will receive about R167 million; Free State, R198 million; Gauteng, R80 million; KwaZulu-Natal, R180 million; Limpopo, R270 million; Mpumalanga, R35 million; North West, R216 million; Northern Cape, R94 million; and the Western Cape, R186 million. This makes a total of about R1,426 billion.
All metros have been left out of these arrangements, except Ekurhuleni, where 64 000 formal households still have to be electrified. In this regard, the rest of the metros will work on eradicating their backlogs and this they will do through the Breaking New Ground programme of the Department of Human Settlements.
I am pleased to report that restructuring of the distribution side of electricity has gained tremendous momentum over the past year. The state of readiness for the consolidation of the 187 municipalities and Eskom distribution systems into single, viable regional electricity distributors, REDs, as directed by the Cabinet decision of 25 October 2006, has reached its highest level ever.
Working together with the SA Local Government Association, Salga, our mayors, councillors and officials of the 147 municipalities out of 187 that distribute electricity, EDI Holdings has signed accession to co-operative agreements with these entities. They have subsequently committed themselves to actively participate in the EDI restructuring process.
Furthermore, over 30 municipalities, which together with Eskom constitute about 90% of the entire electricity distribution in the country, have undertaken the process of ring-fencing their electricity distribution assets in preparation for incorporating their electricity assets into REDs. Thus far, EDI Holdings has spent about R62 million to assist municipalities and Eskom with the ring-fencing exercise.
The huge backlog in maintenance, refurbishment and investment in EDI infrastructure, which is estimated at no less than R27 billion, continues to be a major challenge. This continues to have a negative impact on service delivery. The government has established an Interministerial Committee on Energy to urgently redress this situation, amongst other things. The process of integrating this programme into the overall Local Government Turnaround Strategy is under way.
The main focus in the months ahead for my department and its implementing agency, EDI Holdings, is to ensure that all stakeholders agree as soon as possible on the implementation plan to ensure the acceleration of the establishment of the six wall-to-wall REDs as agreed upon by Cabinet.
We expect the Department of Justice and Constitutional Development to finalise the processing of the proposed Constitution Seventeenth Amendment Bill after which we will be able to table the RED Establishment Bill.
Members of the National Council of Provinces are the ones who actually understand better than those of the National Assembly the impact of electricity distribution on municipalities, because you are the ones who are dealing directly with municipalities and provinces. You would know the challenges that municipalities have in relation to decaying infrastructure, where in some instances there is electricity, but people would be sitting without lights going on, primarily because the network that leads to the household is unable to provide that service to them.
It is important, therefore, ladies and gentlemen, that all parties who have the interests of South Africans at heart should support the Constitution Seventeenth Amendment Bill so that when people switch on the lights, there will be light.
As electricity tariffs increase, our main concern is the impact on the impoverished, the poorest of the poor. We will mitigate the adverse impact of tariff increases on the poor through a number of mechanisms over and above the free basic electricity programme.
The first mechanism is based on inclining block tariffs, and the second one is related to savings on the electricity bill which are derived from the solar water heating programme. For example, the tariff increase applicable to the indigent will be the lowest part of the block tariff proposed by the National Energy Regulator of South Africa, Nersa, and this is minus 10% for year one for consumption below 50 units per month, followed by 5,4% for year two and 5,5% for year three.
The highest increase is applicable to customers who consume more than 350 units per month, which is in line with the user-pays principle. If you are sitting in this House and your lights are on, your pumps are on, and everything is running, you must pay for that. You must also pay for what you waste, even for the electricity that you are not using. You will have to pay for that.
We will work with the Department of Co-operative Governance and Traditional Affairs, Cogta, and the National Treasury to sort out the funding of municipalities in so far as electricity distribution infrastructure is concerned. We need municipalities on our side as energy champions, and we call on them to apply surcharge increases in a manner that is sensitive to the circumstances of the indigent. We also appeal to the hon members of this House to support the restructuring of this sector.
You will remember that municipalities - and I am sure they have come a number of times to this House - indicated that they rely on the electricity revenue to be able to sustain themselves. Unfortunately, while electricity is providing the revenue, that money is not being used to sustain the infrastructure for electricity. It is being used for other services that municipalities need, so that is why we are appealing to you to engage with the finance committee.
You should be able to motivate for a better funding model for municipalities, so that they do not rely on what we call low-hanging fruit, which is easy for them to get. The increased electricity surcharge means increased revenue for municipalities.
However, that also works against energy efficiency, because if municipalities have to rely on the electricity charges, they would motivate people to use electricity so that they can have more revenue. It also works against their own challenge of revenue collection, because they are not able to collect the full revenue. So, as people use more, municipalities would believe that they would get at least half of that from electricity tariffs in order to sustain their programmes.
In order to encourage energy saving, a financial incentive scheme, to be known as the standard offer, will be introduced. In terms of this, project developers will be able to claim a rebate in respect of the amount of energy they have saved from the electricity system.
It is expected that these interventions will emanate from, firstly, the residential sector, by the replacement of incandescent lighting with energy- saving bulbs; secondly, the industrial sector, through the power conservation programmes in terms of which industrial customers will be able to claim incentives due from less energy-intensive production methods; and lastly, the commercial sector, with energy efficiency interventions like improved insulation in buildings.
We intend to intensify energy efficiency in the estimated 100 000 public buildings, which will be retrofitted to comply with energy efficiency standards. We urge the Department of Public Works to ensure that all provincial governments participate in this project. We once again call upon the hospitality industry to embrace the spirit of this campaign.
We would also like to congratulate the Department of Arts and Culture for working through the SA National Energy Research Institute, Saneri, on making Robben Island one of our major greening projects.
Solar water heaters are one of the key interventions in energy efficiency and demand-side management, EEDSM, in terms of which we are making a commitment to progressively deploy solar water heating for water heating in all residential dwellings. The outcomes of this programme are expected to include electricity demand reduction of about 3 600 megawatts, and localisation of solar water heating technology, design and production.
I am sure you have heard the Minister of Economic Development indicating the type of interventions his department will make to ensure that we emphasise and support localisation and the production of this technology locally. Issues of climate change mitigation and job creation as well as skills development are further expected outcomes.
As you may be aware, next week on 28 April President Zuma will launch the first massified solar water heater project in Winterveldt. This is a precursor to numerous other projects, which will ultimately result in the displacement of coal by the sun as an energy carrier for water heating in this country. Very soon, we will also be launching 5 000 units with the Sol Plaatje municipality.
We will also be working with the Departments of Public Service and Administration and Public Works on a framework to roll out solar water heating systems to public servants. We want to take this opportunity to thank the Japanese Embassy for being the most energy-efficient foreign mission in South Africa. We also want to congratulate the Legacy Group's Da Vinci hotel in Sandton for its retrofitting, from conventional water heating to solar water heating.
This year, the department will be launching the Working for Energy programme, with the primary objective of using the feedstock created from clearing alien biomass vegetation to produce power. We are happy to announce that we are working with municipalities, the Department of Water Affairs and the Department of Economic Development with regard to waste-to- energy projects. You heard the Minister announce the green economy initiatives.
Chairperson, we would like to reaffirm our commitment to establishing more integrated energy centres, IECs, throughout the country in order to reduce the impact of energy poverty. This programme is one of the vehicles that the department is using to contribute to government's commitment to rural development and sustainable job creation.
An integrated energy centre is a one-stop energy shop owned and operated by community co-operatives and organised as a community project. The IECs act as community information hubs and energy shops that sell illuminating paraffin, liquid petroleum gas - which is LPG - candles, petrol and diesel from oil companies directly to the community at more affordable prices.
The department, working together with the affected stakeholders, is currently reviewing the IEC sustainability strategy that was developed in 2005 in order to ensure that these IECs are achieving the desired results.
Discussions are under way with the Department of Rural Development and Land Reform to ensure that the IEC programme is aligned with the Comprehensive Rural Development Programme. This year, we intend to launch two IECs, in King Sabata Dalindyebo and Mbizana Local Municipalities in the Eastern Cape.
My department is also actively involved in assisting operating IECs in places like Ratlou in the North West, Mutale in Limpopo and Moshaweng and John Taolo Gaetsewe municipalities in the Northern Cape.
Through this House, I would like to appeal to you to engage with municipalities to make sure that they can process applications for land, in particular for sites for the IECs as quickly as possible, because the IECs are an instrument with which we can deal a blow to energy poverty.
Illuminating paraffin is the most commonly used and purchased fuel source for low-income communities in the country. It is used in varying degrees in almost half of all South African homes. Like all other fuels, illuminating paraffin is a hazardous substance which, when not properly handled or used, can result in unacceptably high levels of harm to humans, with financial and economic consequences.
To address this problem, the department together with the Central Energy Fund has embarked on a pilot programme to test the efficacy of new, safer illuminating paraffin appliances in areas previously devastated by paraffin- related fires. These areas are: Alexandra in Gauteng, with 350 beneficiaries; Ezinqoleni in KwaZulu-Natal, with 350 beneficiaries; Mbizana in the Eastern Cape, with 150 beneficiaries; and Imizamo Yethu in the Western Cape, with 350 beneficiaries.
The monitoring and evaluation consultants will issue a close-out report to the department in June 2010, and I believe that we will also be reporting back to this House on matters related to the outcome of this investigation or pilot programme. Chairperson, out of the 15 400 licences lodged in the petroleum industry so far, 12 431 have been processed. For the 2009-10 financial year, 3 041 licences were processed. From 1 April 2010, all regional offices were opened and running, and applications can now be lodged in the regions.
I have instructed the department to process licence applications within the stipulated time of 90 days, with the ultimate aim of reducing that time. The licensing of petroleum business activities also assists the department to monitor and enforce the economic empowerment of historically disadvantaged South Africans, as outlined in the Liquid Fuels Charter.
I also want to use the platform of this House to request members, through their constituencies and also through engaging with municipalities, to encourage municipalities to look at ensuring that people are not given sites for trading in petroleum products before getting their licence from the department. It happens at times, and then the licence application is turned down, which creates a problem for the particular individual. This is especially true of people who are just emerging in this particular industry.
The national oil company, PetroSA, is pursuing a number of strategic initiatives aimed at enhancing the national security of energy supply. One of these initiatives is Project Mthombo, the main objective of which is the construction of a crude oil refinery in Coega. My department is currently evaluating information which will enable government to take a decision on proceeding with the front-end engineering and design phase.
The GTL, gas-to-liquids, refinery is PetroSA's main revenue generator and supports a total staff complement of about 1 800 workers. It has generated thousands of jobs in and around the Mossel Bay and greater Southern Cape region, leading to a massive direct and indirect impact on the local economy. It continues to provide support to the local business community and has generated income through wages and salaries for most of the families in this area.
There is a continued search for oil and gas resources, with the primary aim of further sustaining operations at the Mossel Bay GTL Refinery beyond its current estimated economic life. To this end, there is ongoing exploration off the coast of Mossel Bay. Thank you very much. [Applause.]
Chairperson, hon Ministers and MECs, the president of the SA Democratic Teachers' Union, Sadtu, colleagues and members, I don't know when the hon Harris was appointed as the official timekeeper of this House, but I see him rising every time. I don't know if he has a new position or portfolio that we don't know about. [Interjections.]
Let me thank the Minister of Energy for being here today after getting up from her sickbed to deliver this Budget Vote. That speaks of commitment and we thank her for that. We wish her a speedy recovery from her illness.
This debate is all about new ways of doing things in order to improve on them, especially new opportunities with a focus on the threat of global climate change, such as alternative, cleaner and renewable fuels or energy sources. This is very true regarding energy. Our brand-new Department of Economic Development is presenting its first full budget before this Council.
On behalf of the committee I want to thank and congratulate both Ministers and their departments on the hard work they have done in preparing and presenting these budgets under the present economic climate. They have also done a sterling job in enlightening us on the content and details of these budgets.
Both departments are affected by the quest to seek greener, cleaner, meaner and other energy sources for our daily use and sustainable development.
In line with the ruling party's Polokwane resolutions, emphasis is placed on the utilisation of alternative sources and on the clear intent of our government to find a way of gradually replacing fossil fuels with new and better alternatives; and also to create green jobs to tap into the new green economy. [Interjections.]
I know now why the hon Sinclair is making a noise, because his party has no resolutions. [Interjections.] So that's why he is making that noise, as well as the hon Gunda, who doesn't even have a policy.
I wish to commend the Ministers and their teams for the strides they have made to advance the use of better technology as regards existing energy sources, such as coal and liquid fuels emitting undesirable gases. The focus on the preferred solar carrier for water heating or even wind energy is much needed, but our country also has extensive coastal areas where wave power could also be investigated, not to speak of thermal, ground or earth energy from our vast land areas which could be tapped to our advantage. [Interjections.]
Yes, hon Plaatjie, many countries have taken leading roles in the further refinement and development of alternative energy sources, such as the sun and wind, with technologies that are becoming cheaper and easier to implement.
Minister Peters, under your guidance and leadership, South Africa may become a world leader in harnessing natural powers such as the eternal movement of our coastal waters and energy from below the surface of the ground. I wish to point to the objectives of driving back poverty and growing the opportunities of a new, green economy. Yes, it is understandable that more nuclear capacity is needed to supply the bulk demand, but to reduce the demand-side needs by employing more alternative options for small-scale individual and even remote users is the way to go, hon Gunda.
In this regard solar cookers and other safer and cleaner methods of household use such as biofuels should be further explored to help the poor and especially marginalised people on farms in remote areas, where people up to now have had to prepare food using animal dung. This will go a long way in assisting our women and more specifically marginalised African women.
We can employ the latest technology or even improve on some internationally developed gadgets to be used to improve the lives of our poor people in rural areas and reduce energy poverty, but it can also create much-needed job opportunities to promote decent work for our people.
In the past, South Africa was a world leader by developing and inventing various products here. If we use the brain power that we already have, we may even develop new products for the prime international markets to the benefit of our people and our country's economy. We may even consider strategic partnerships to reach our goal also with other countries and those neighbours within our developing region, hon Gunda.
Our government should also further investigate the possibilities of agriculturally produced fuels, especially in the more arid or marginal production areas, with crops that are less prone to the consequences of climate change. [Interjections.]
I wonder, Chair, if the hon Gunda knows what climate change is, but we will leave that.
We welcome the announcement of a solar park, but would like to see more alternative uses all over our country. We also know that our electricity sector is vulnerable and under pressure. With soaring prices and huge dependency it is understandable that Cabinet resolved that 30% of new energy generation should come from independent energy producers.
Chairperson, I would just like to ask if the member will take a question.
No, sir. Maybe next week, but not now, sir.
But we could also have more people becoming independent of grid supplies, or at least reducing their dependency on it by consuming fewer units from the grid. This is possible if people have installed their own mini producers or have tapped into natural sources with alternatives such as solar and wind technology.
It is also to be welcomed that feed-in back into the grid be investigated. This will also ease the demand for more kilowatts to be generated as well as the capital needed to finance very expensive operations. We also welcome the proposed regulation by the hon Minister Peters of the price of liquefied petroleum gas, LPG, or gas for residential consumers.
The hon Minister's plans for abalone farms in stricken coastal towns are most welcome. I urge the Minister to expand this cultivation programme to benefit more towns that have a very high unemployment rate and to explore other species, such as the large-scale production of mussels and even crayfish - if the hon Plaatjie knows what that is.
New life could be given to agricultural and rural areas if some green industries could be developed there. In this regard, stimulation of cottage industries along international practice lines could assist many people in the second economy to be mainstreamed.
Expanding rail transport holds enormous potential for rural development and should receive priority to open up these areas economically.
Lastly, I want to thank everyone for the work done to fight and eliminate the unacceptable and exploitative practice of price-fixing. I thank the Ministers, the DGs and departmental staff who have always been available to assist the committee, as well as the committee members for a good and fruitful debate, as the Minister has already pointed out.
These Budget Votes are fully supported by the Select Committee on Economic Development. I thank you.
I approach this House with some trepidation. I am due to debate the Budget Vote for a department that we believe should not exist at all. Essentially we believe that there should be no funds appropriated for the Department of Economic Development and that the department should be stillborn and fade into history as soon as possible.
A year ago this department did not exist at all. Is there something new, as hon Adams seems to say, that this department is doing, or is it simply making up for the dysfunctionality of the Department of Trade and Industry? There is no place in a modern global economy for the kind of centralised economic planning and consequent economic ruin that characterised the now defunct Soviet bloc, and still lingers on in today's failed states such as North Korea and Zimbabwe. There is far too much regulation already in our economy.
Hon Chairperson, the more you treat people like children unable to control their own destiny, the more they will behave like children and require the services of a nanny state. This approach stifles initiative and condemns people to lives of mediocrity.
What is required is a deregulation of the economy in such a way that opportunities are created for people to take control of their own lives and become drivers of economic growth and thus wealth in South Africa.
We have no doubt that South Africans of all communities and backgrounds are capable of initiating new ideas and hard work. What they need are the opportunities for them to achieve their potential. Few, if any, of our people, wish to be dependent on social grants with no real hope of any chance of self-fulfilment or advancement. All our people want a better life for themselves and in particular for their children.
It should be self-evident that there are key areas which the state should prioritise. Probably the most important of these areas is education. There is no way in which we, as a country, can possibly compete globally with the largely abysmal education system that we have in South Africa today.
There can be no doubt that economic development can only take place on the scale that is required in South Africa if our people are healthy and an excellent health system is in place. We agree wholeheartedly with the ANC on this. Unfortunately the ANC has reduced health care in South Africa to a state of near collapse with whoever can afford it clamouring for the services of the private health care sector.
Then there is the rampant crime which our people face every day of their lives. This includes fraud and corruption as well as violent crimes such as hijackings, assault, rape and murder. No amount of gung-ho, "shoot to kill" bravado will solve this crime crisis.
Hon Chair, the Department of Energy has as a result of poor planning had to concentrate on stabilising and increasing the supply of electricity. In order to achieve this ability and increase the supply of electricity, Eskom was given the authority to build coal-fired power stations as well as the Ingula Power Station near Ladysmith.
We are all aware of the involvement of Hitachi in the coal-fired power stations, but we have been informed that Hitachi is also a supplier for the Ingula Power Station. If this is true then this is an additional source of profit for the ANC through Chancellor House, and yet another conflict of interest.
The ANC must come clean with the people of South Africa and tell us exactly the extent to which Hitachi is involved in the Eskom projects. In addition, Hitachi must divulge the extent of dividends which will likely accrue to Chancellor House, and thus the ANC, as a result of all the contracts awarded by Eskom to Hitachi.
It is irrelevant what the ANC wants done with these dividends as it is Chancellor House, as the shareholder, who will be due these dividends and not any third parties who may or may not be nominated by the ANC to receive them.
Eskom has also been given the authority to proceed with a concentrated solar power, CSP, project, a commendable source of clean and renewable energy. However, this simply puts more generation of electricity in the hands of Eskom which already has a monopoly. If the CSP project is a condition of the World Bank loan then it should be put on the market for other players to enter the electricity-generation industry.
The most obvious solution for new generation capacity would be the sale of existing power generators. However, this has been rejected and as a result consumers are going to have to pay massive increases in the cost of electricity.
Hon Chair, I have another four or five pages, but I see my time is now down to 23 seconds and I cannot say much more. Thank you so much. [Applause.]
Hon Chairperson and Ministers, according to Prof Haroon Bhorat, using the Gini coefficient index as an indicator, South Africa has overtaken Brazil as the country with the widest gap between the rich and the poor. South Africa is now the most unequal society in the world and the gap continues to increase.
This must be a wake-up call for all of us, especially the ANC government. The government is doing something wrong and certainly failing the mandate given to them by the electorate, a year ago today.
Chairperson, what are the realities of South Africa today? First, South Africa moved in 16 years from a race-based to a class-based society, with a majority of poor, neglected and forgotten citizens, who only become important during the run-up to elections.
Secondly, South Africa is no longer a developmental state but a welfare state, where the majority of especially the rural poor survive only on the monthly grants paid by the SA Social Security Agency, Sassa.
Thirdly, the current spatial development frameworks and patterns are not addressing or supporting the urgent and dire challenges of especially the poor and the rural areas.
In striving to address these challenges, economic development and energy are the flipsides of the same coin. This ANC has the privilege to decide if this coin can be a valuable gold coin or a meagre 50c coin. Currently, according to Bhorat, this coin is not even a 10c coin.
These two departments are indeed central and instrumental in building a sustainable and prosperous nation. These strategic plans have the ability in theory to enhance the five priorities in government's electoral mandate.
Chairperson, the current realities, however, remind us that if the government continues on the road they have embarked on, especially regarding energy, more questions will remain than answers. The Eskom monopoly, blackouts, secret deals, the Chancellor House debacle and the World Bank loan are proof of that unfortunate legacy that seems to haunt South Africa.
Alan Zarembo said, and I quote:
Coal, the dirtiest fossil fuel, is the crackcocaine of the developing world.
On World Earth Day that we celebrate today, it is essential to acknowledge that the future must be green. Alternate thinking and energy resources must be the guiding imperatives that abort fossil fuels as the considered form of energy.
The key focus of economic development on partnership-building with social partners and within sectors is the right one, but productivity, entrepreneurship, innovation and social dialogue must be the cornerstones of these activities. Key to these developmental opportunities, Chairperson, must be the energy needs of our country and region.
A relook at the spatial developmental framework of South Africa must put the Northern Cape, as an example, on par with Gauteng in terms of economic development. Gauteng's economy must be stabilised, but we need to grow the rural and marginalised areas of our country. Chairperson, only then will the 10c coin that we currently have, according to Bhorat, be transformed into a gold coin - even with a Mandela face on it! Collectively we owe that to the poor and forgotten people of our country. I thank you. [Applause.]
Chairperson, hon Ministers, colleagues, ladies and gentlemen, it's a great pleasure for me to debate the first ever budget of this department that has a great responsibility for transforming the economy that the country inherited from the neoliberals or after 40 years of National Party rule.
We should take cognisance of the fact that the policy that we inherited was capitalistic in nature and thus embraced the free market ideology. Therefore, the department has its work cut out in turning around the economy to address the socioeconomic ills that the democratic government has been grappling with for the past 16 years.
We have a few programmes in the department, including the administration programme. I should say that key appointments still need to be made, and other vacant posts need to be filled for this department to run smoothly. It is, however, encouraging that the department intends to use as few consultants as possible in all of its activities in order to save money.
It is also noteworthy to mention that the Minister will ensure that he has competent and skilled staff who will ensure that delivery is not compromised.
I would, however, like to make the Minister aware that cadre deployment of competent and skilled party loyalists to carry out the mandate of the people as espoused in the manifesto is not a sin. It is a developmental state that needs to implement policies that realise the objectives and aspirations of the populace.
Hon Lees has had the guts to say that our economy is overregulated. He forgets that we were able to weather the storm of a financial crisis because our regulations were still in place. Most countries that went for deregulation, that liberated the economy - wholesale liberalisation - are today facing an economic crisis; they didn't escape the storm of the financial crisis.
However, because we as South Africa were careful about liberalising our economy and we were careful about keeping some of the regulations in place, we were able to weather the financial storms a year or two ago.
I should also point out that the programme on economic development is key in order to make our economy viable. The bulk of the funds are put into this economic planning and development and one of the core functions of the programme is policy co-ordination. We are, therefore, looking forward to a seamless policy implementation within and between government departments in the near future as the department of policy development takes off.
However, it is worrying that most of the funds or the bulk of the funds in this department are channelled or transferred through to the development finance institutions, DFIs. Now, the DFIs have a history of not serving the needy, of not serving the poor, because at the end of the day they are chasing profit.
We do believe and hope that the mandate of these DFIs will be looked at and that the funding models will be changed, so that they address the needs of the poor and the economically downtrodden.
I think hon Sinclair is aware that his moving from the ANC to Cope was a mistake. He is well aware that the ANC is central - or the majority of the people are central - in making policy within the ANC. Cope still has to sit down and attend their conference to have their policies in place.
I think it's a hangover or, rather, he finds it very cold in Cope as they are unable to come up with policies that can take Cope or this country forward. The doors are still open so that he can come back home; he'll be much more welcome.
South Africa has never been a developmental state. He said that the developmental state is no more, but I would like to make him aware that South Africa has never been a developmental state. We took a conscious decision when we took over this Fourth Parliament that South Africa needs to be a developmental state.
Now, what is a developmental state? A developmental state is a state that makes sure that its citizens, its populace, benefit from the economy of the country. One of its key issues is to make sure that it deploys its cadres into key government institutions to make sure that the policies of the movement are implemented. So, we are not ashamed to say that the Minister should look into cadre development, deploying cadres who are skilled and competent to make sure that our policies are implemented.
Therefore, one should take solace in the fact that the government is in good hands and has a visionary leadership that knows what the needs of the people are. The leadership we are talking about is the people who are sitting here, those who are in Luthuli House, who are looking into policies to make sure that this country goes forward. Thank you. [Applause.]
Dr M B KHOZA (KwaZulu-Natal): Chairperson, hon Ministers, hon members, first of all let me express a word of gratitude from the KwaZulu-Natal province for being able to take part in this policy debate on Budget Vote No 27 on Economic Development.
We are meeting at a time when in KwaZulu-Natal we have had some exciting things happening on the economic development front. We have the King Shaka International Airport that is about to be opened. We are already beginning to see the Dube TradePort, which has a 60-year vision, showing signs of success.
We are also grappling with some of the challenges because we are forward- looking in KwaZulu-Natal; and, finally, we are also now looking at post- 2010 sustainability issues because the reality is that we had a lot of investment towards 2010. I just want to share with the House that economic development actually should not be taken for granted. South Africa is a country that has a lot of contradictions. If you go to one part, you feel as if you are in a developed country. When you go to another part, you feel, well, I am in a developing country. But as soon as you move to the periphery, you actually find that you are in an underdeveloped country.
Therefore, economic development should not be taken for granted, because it is there to bridge that gap and to facilitate policy that is going to enable those who were disadvantaged by racial capitalism to fully participate in our trade and industry and not as survivalist participants.
I also want to say, Minister Patel, in your budget speech you stated that some 5,8 million people are unemployed or no longer looking for employment. Indeed, there is no way we can simply think that these people, without any support from us as government, will be able to see the light of day. It is important, therefore, that all budgets - the budgets of national, provincial and local government - should make a difference.
I am very encouraged, and I know my province is very encouraged, that we are beginning to see intergovernmental relationships begin to work. We are no longer working in our own silos, but we have begun to leverage on the strengths of all the different spheres of government.
We also have the challenge, though, that as you have said, we have R380 million that is transferred to agencies. This is also important to us because even in KwaZulu-Natal, 65% of our economic development and tourism budget goes to public entities.
What becomes important is how we do oversight of these public entities, because at the end of the day it is clear that a large part of our deliverables will be happening at that level where a lot of money is going to. So, it becomes important that we actually begin to focus on that.
We are also encouraged by the fact that the department is focusing on a development path. This is also important, because there are signs that an economy that is driven by super greed has led us to the global recession that we now have.
Therefore, it is very important for the state to be able to have a balancing act where you balance the role the market forces can play but also protect your own citizens in the way that we have done. Noam Chomsky describes that as "profits before people", and I would love to believe that we as this government would like to put people before profits, because we know that super greed can be catastrophic. The KwaZulu-Natal government led by the ANC is putting people first. We have a "one home, one garden" campaign. This campaign is very important in revitalising people's belief in themselves so that they become their own liberators.
They have to recover from disillusionment and despair and see the beautiful day that comes with being alive. Therefore, it's very important that we do not simply accept that people have become withdrawn. We should be worried about why people are withdrawn and we should be finding something with which to encourage them.
We also feel strongly that we need to invest in reviving the African merchant who was squeezed out by apartheid segregation policies. There are limited economic activities in most African townships. It is even worse if you go to the rural settlements.
In order to grow a sustainable economy we need to focus on the areas where most of our people reside and create economic activities in those areas. We cannot speak of economic development if our people have to travel many kilometres, sometimes hundreds of kilometres, and end up spending their very meagre wages on transport rather than food.
Co-operatives are very important, but are meaningless if not coupled with access to markets. Our lesson in KwaZulu-Natal is that we have had a 95% failure rate of co-operatives. The study has come out very strongly in making the point that the failure of those co-operatives was not because they did not have the quality of produce, but the problem was access to markets. Therefore, access to markets becomes a very important point.
I also want to share with you that I met a woman from KwaHlomendlini, in one of the rural settlements in KwaZulu-Natal, who had singly farmed dry beans that were almost filling half of her rondavel. These beans were not stored properly, and most of them went to waste because they started to have iinunu [worms].
Yet South Africa imports most of these dry beans; so now the challenge for economic development is how we begin to identify these people who are there and are making up the statistics of unemployment, because they are not registered. They are registered as unemployed, but these people have the skill and the ability.
However, they probably have inadequate or no exposure to how markets work and how to send their products to the markets. We need to identify these people in an organised fashion and we will certainly bring down unemployment statistics. We may, in fact, review our definition of "unemployed".
Local economic development remains central in developing, growing and sustaining our economy. Every investment or every disinvestment happens within a municipal area of jurisdiction. I am glad that in our province the premier, hon Zweli Mkhize, is very much involved with the municipalities. MEC Mabuyakhulu is also working very closely with municipalities to make sure that local economic development begins to become an expression of provincial development.
I am encouraged by Minister Ebrahim Patel's commitment, as was well illustrated in his budget speech, that the Department of Economic Development will promote workplace productivity agreements. It will foster entrepreneurial endeavours in the economy, particularly those of black entrepreneurs. I think that with regard to the black entrepreneurs, we should really be declaring this a decade of black entrepreneurs so that we begin to encourage that culture. To survive in the market one has to have that resilience.
Finally, Chairperson, I want to remind us in this House that each one of us has a responsibility to grow this economy and to sustain it. Remember, the moment you employ one person you are already beginning to play a role in promoting the economic activity in your area. You are also beginning to reduce the statistics on unemployment. I thank you very much, Chairperson. [Applause.]
Chairperson, hon Minister Patel has highlighted, throughout his speech, the importance of employment creation and the plight of the people in our country, who, through their inability to find work, cannot support themselves or their families. This resultant unemployment of 5,8 million people affects the poverty status of people as well as causing inequality.
The Minister has highlighted the precarious existence of South Africans, with inadequate jobs and far too high a level of working poor. The 2009 ANC electoral manifesto highlighted the importance of creating decent work through inclusive, labour-absorptive economic growth.
The focus on decent work is an important approach of the ANC government, geared at creating work and decreasing inequality while gradually alleviating poverty.
Hon Sinclair, this is a result created by the previous apartheid regime of the National Party to which you once belonged. You jumped to the ANC and now to Cope.
The national department plays an important role in developing policies and guiding the framework within which the provincial departments align and act as the operating arms of the national department. The Gauteng provincial department of economic development is fully aligned with the strategies and policies as outlined by the national Minister.
The primary mandate of the Gauteng provincial department is to create decent work, through inclusive, labour-absorptive economic growth that promotes sustainable livelihoods and alleviates poverty and inequality. However, the provincial government has been innovative, and bold in the manner in which this priority is achieved.
The provincial department has acknowledged that there is structural unemployment, where unemployment rates have never broached the 21% level in the province, despite an average economic growth rate of nearly 6% over the period 2005 to 2007. The recession has exacerbated unemployment rates and poverty levels.
The department has focused on addressing the mandate of the provincial and national government by focusing on transforming the provincial economy through improved efficiency; sustainable employment creation; increasing economic equity and ownership; investing in people and sustainable communities; and social cohesion.
There are a series of short-term interventions as well as medium- to long- term interventions that will be implemented over the next year and over the medium term. The short-term interventions aim to address the structural unemployment and the impact of the economic recession, while the medium- to long-term interventions aim to progressively transform the Gauteng provincial economy.
Hon Sinclair, do you hear what Gauteng is going to do? The phasing-in is important, as is the vision to develop a growth path that focuses on the primary and secondary sectors, on the formal and informal sectors, on institutions ...
Chairperson, I was just going to ask the hon member if she is aware that many of the people who are sitting in the ANC were also members of the National Party. [Laughter.]
Key short- to medium-term interventions include the following. Firstly, there are the increased public employment programmes that target people excluded from mainstream economic activity or formal employment, particularly in rural areas, informal settlements and townships. This contributes to an employment safety net and is a form of employment guarantee.
Secondly, there are the youth employability programmes.
Thirdly, there are active industrial and sectoral development strategies to support labour-absorptive sectors and sectors in distress, while encouraging exports as well as localisation.
Fourthly, there is financial and nonfinancial support to small, medium and micro enterprises, SMMEs, and co-operatives in the formal and informal sectors of the economy.
Fifthly, we have pilot projects that focus on green jobs and green technology investment in the areas of energy efficiency, waste management and rural agricultural development and food security; and sixthly, increased strategic, socioeconomic and bulk infrastructure investment, encouraging infrastructure-led growth and effective spatial planning that unites the economy.
Furthermore, the infrastructure investment needs to focus on developing the necessary networks that bring people in the province closer together and address the backlogs in service delivery.
Thus, much like the national department, the Gauteng provincial department of economic development aims to promote a vision of an inclusive and sustainable Gauteng economy that promotes a developmental and equitable society, hon Sinclair. This is to be achieved through a series of short-, medium- and long-term interventions that will set Gauteng on an endogenous growth path that will create decent jobs and enterprise opportunities in an economy that is innovating, inclusive and green. I thank you. [Applause.]
Hon Chairperson, hon Ministers, hon members, this Ministry needs to be more than just an economic think-tank. It must possess the machinery and political will to ensure that the necessary interventions are driven through all government departments. Laat my toe om die Minister te bedank dat Nelie Kok ten minste aandag kry. Ons het vyf jaar baklei. Die provinsiale regering het dit al die pad gegnoreer. Hulle het die potensiaal om vir hulself werk te skep, indien u hulle werklik gaan help. (Translation of Afrikaans paragraph follows.)
[Allow me to thank the Minister for at least giving attention to Nelie Kok. We have been fighting for five years. The provincial government ignored this every step of the way. If you truly intend helping them, they will have the potential to create jobs for themselves.]
Many government departments failed to implement the measures required from the first industrial policy and created bottlenecks in the system. This cannot be allowed to happen again for the simple reason that delays serve only to worsen the inequalities in our society.
In this regard, I would like to quote Andile Mngxitama, the publisher of New Frank Talk, who wrote in the Sowetan, and I quote:
The truth is that most blacks experience increased poverty, disease, bad education and health care ... Economic racial inequalities lead to racism in the everyday interaction between blacks and whites. Basically, life for blacks remains an experience of humiliation. I believe that the extreme wealth of a few black individuals does not make the humiliating day-to-day poverty of 20 million black South Africans less bad.
My onlangse ervaring in Limpopo met "Taking Parliament to the People" is dat die mense wat in die omgewing van 'n myn bly nie mede-eienaars van die minerale is nie.
Die Onafhanklike Demokrate glo dat die enigste manier om armoede te verlig, is om mense aandeelhouers te maak in die betrokke myne waar hulle werk en in die omgewing waar hulle bly.
Die Noord-Kaap het baie minerale soos diamante, ystererts en mangaan, maar die mense het nie 'n aandeel in die rykdom van hul provinsie nie. Dit is baie vreemd.
Al wat ons in die Noord-Kaap het om te wys vir die lang jare van mynwese, is mense wat siek is van asbestose. Dit moet eindig. (Translation of Afrikaans paragraphs follows.)
[My experience recently in Limpopo with "Taking Parliament to the People" is that the people who are residing in the vicinity of mines are not co- owners of the minerals.
The Independent Democrats believe that the only way to alleviate poverty is to make people shareholders in the particular mine where they work and in the vicinity where they live.
The Northern Cape is rich in minerals like diamonds, iron ore and manganese, but the people do not have a share in the wealth of their province. This is particularly strange.
The only thing we have to show for all the years of mining in the Northern Cape is people who are sick as a result of asbestosis. This must end.]
This government that claims to be implementing policies according to the Freedom Charter must prove that "The people shall share in the country's wealth!"
Where is the wealth of this country? It is only in the hands of the old white elite and the new black elite.
Hoekom moet mense hof toe gaan oor hul eie rykdom, soos die Richtersveld se mense? Hoekom moet ons mense in die hof gaan baklei? [Why do people have to go to court for their own wealth, like the people of the Richtersveld? Why do our people have to fight in court?]
It is the apartheid regime that has done it. So, I want to ask the question: Hoekom moet die mense hof toe gaan? Dankie. [Why do the people have to go to court? Thank you.]
Chairperson, this is a debate on energy and not mineral resources.
Chairperson, Ministers, hon members of the NCOP, thank you for the opportunity to speak. Some things emerged during the debate that I would like to bring especially to the attention of the Ministers; both Minister Patel and Minister Peters referred to rural families who are burdened by extreme poverty.
If there is one case of neglect by the ANC, it is the neglect of those people. Thirty per cent of the highest-potential soil in South Africa is situated in the former homelands. That ANC government - from Derek Hanekom - has been given the technology to develop that land. With that technology you could double South Africa's maize yield; those people who are suffering rural poverty can be helped very easily and cheaply with known technology.
However, that soil was created by the good Lord and needs to be developed. Countries across the globe continue to struggle to rebuild their economies following the worst crisis since after 1929. After the past 18 months many people have been thinking about the issue of development and we have seen some very good examples in the speeches today - they have been making their voices heard!
A powerful new ideal has taken root and you have heard much of the green economies. It is an ideal that says we will fight pollution; we will take climate change seriously; we will intensify our efforts to identify and produce cheaper forms of energy; and we will commit ourselves - all of us - to building a better life for all, especially the poor people of the world.
At this point I would like to touch on the question of energy in our country and the role played by Eskom in its production and distribution. In February, at a media briefing to set out government's view of the massive tariff increases, national Energy Minister Peters fell prey to a serious bout of what one could call gobbledygook.
After stating that the positives of the decisions far outweighed the negatives, the Minister added that the time had come to consider energy intensity in the relative context of the jobs that we can create, in comparison to other less energy-intensive industries.
Then she said that without energy security, the levels of economic activity necessary to create new jobs could not be achieved. Perhaps the Minister needs to revisit the old Eskom plans for the Congo River, the second largest river in the world after the Amazon. Its hydroelectrical potential, as is known, is sufficient to power all of sub- Saharan Africa and bring energy security to all Africans. This should have been a major focus of the Nepad policy, but it has never been addressed.
I want to be quite blunt about this: The increases granted to Eskom will prove to be calamitous for small, medium and micro enterprises. And, should anyone have forgotten, let me remind you that SMMEs have long been regarded as an essential element of the South African economy.
Indeed, recent studies have shown that small and medium enterprises, especially, have overtaken the corporates in the provision of employment opportunities for the people of this country.
My question is: Where to now for small businesses? Perhaps the national government should tell us what they intend doing to alleviate the plight that awaits those small businesses. What we are seeing here is small businesses with their backs to the wall and with their knees squeezed tight against a steel gate.
It would, therefore, simply not be good enough to advise them to use less electricity. And it would be as tactless to pull out the tattered notepad containing that overused, scribbled sentence that says: "Our electricity is still the cheapest in the world".
The question that the people of this province and South Africa want answered is: When will our standard of living start to improve again?
Chairperson, I would like to raise another question about Eskom. In its present form, in this day and age, should it be entrusted with the responsibility of running the South African grid?
This is why I am asking: There is an increasing belief among proponents of a green economy that Eskom is far too unwieldy to be an effective, modern distributor of electricity. It was great for the 1980s, but in this second decade of our third millennium, it has become like a sumo wrestler sprinting against a Jamaican athlete.
At a time when energy institutions around the world have become renowned for innovation and a commitment to finding green sources of energy, Eskom continues to soldier on regardless. Perhaps it is time for those who judge performance and who make these decisions to have another look at the model.
There is a good reason for being critical of Eskom, just as there is a good reason for my party's criticism of national government's slow progress in developing a green economy for South Africa - in spite of the encouraging words that we have heard here this afternoon.
The DA acknowledges that there is some wonderful talent in South Africa, and of course, especially in the Western Cape. We know that there are thousands of people who want to give something back to this country. All of us must encourage them to contribute by creating the conditions that will enable them to continue playing a positive role.
We believe that it is crucially important to promote a can-do spirit in South Africa and to unite to crush the will-take culture that seems to continue to raise its head. The DA takes its role in opposition at national level and as a governing party in the Western Cape very seriously. We do not believe in criticising for criticism's sake; wherever we can we will try to offer alternatives.
The DA believes that the Western Cape has the potential to become the green technology hub of Africa, especially with regard to alternative sources of energy. There are a number of things that we believe count in favour of our province.
If we look at how successfully wind has been used to generate electricity in several countries around the world, it's quite easy to understand why people become excited at the prospect of generating wind-powered electricity all along our West Coast. That is not all: High energy, coast wave-generated electricity is a big possibility; within 150 km of Cape Town we have the Karoo starting, with its possibility for utilising the sun to generate electricity; and then bio- energy as well.
The rise of a global green economy has sparked a number of international developments of which I would like to mention just two. The first is the traditionally poor and in some cases very poor countries, which have embraced and developed green opportunities. The second is the way information flashes across the globe.
Perhaps we can look at Bangladesh and the microcredit arena where Grameen Shakti has launched a programme to bring renewable energy technologies to rural households. Since its launch, Grameen Shakti has installed photovoltaic solar systems in 205 000 homes across Bangladesh. Every month an additional 8 000 homes are fitted out, and by 2014 they contemplate 7,5 million such homes.
Grameen Shakti has also installed 6 000 biogas plants which can utilise dung and organic litter, and can generate gas for cooking as well as for electricity and organic fertiliser.
The same thing has happened in Germany where 280 000 jobs have been generated through renewable energy and offshore wind parks. Here we are looking at another 30 000 jobs. The retrofitting of buildings has been mentioned. I hope that the government and national government will pursue that with great energy.
Recycling in the USA is a US$236 billion industry and certainly something that South Africa must emulate and the government must stimulate to the maximum of its capacity.
I would like to just quote Mark Swilling, a South African academic, when he referred to what Gordon Brown had written:
... governments across the world have made green investment a major part of their economic stimulus packages. They have recognised the vital role that spending on energy efficiency and infrastructure can have on demand and employment in the short term, while also laying the foundations for future growth. ... the economies that embrace the green revolution earliest will reap the greatest economic rewards.
I think, for the sake of our children, Chairperson, that this is something that the national government and all provincial governments should pursue with the greatest energy. I thank you. [Applause.]
Chairperson, hon Ministers, hon members, DGs, distinguished guests, ladies and gentlemen, I will be failing if I do not assist you, hon Walters. I was impressed that you were quoting and it is clear that you are interested in learning.
I will pose questions to you as homework. Who created the current challenges? Who created the homelands you are talking about today?
Hon Gunda, I was checking with the DG on that side and she was surprised: "Who is this one?" You are the only one from one party who has never attended our meetings. No wonder the confusion.
Hon Lees, what an insinuation about the department of Education! Yesterday, we were told here that it is a fact that there is an overhaul of these further education and training, FET, colleges. There is a serious focus on engineering.
And hon Sinclair - hopping and jumping as he spoke here! My advice to all of you is that here in Parliament you can register for a basic economics class instead of blaming the department, and Parliament will pay for that.
Chairperson, it is an honour to be afforded an opportunity to participate in this debate on this historic day. It is on this day last year that the majority of the citizens of this country gave the ANC another opportunity to lead the fourth democratic Parliament.
After going through the department's strategic plan, indeed, we agree with you, hon Minister, that the decision taken by the President in May 2009, in this fourth democratic Parliament, to have a dedicated Energy department, has imposed enormous responsibilities on you to take on your mandate with the necessary dynamism and vigour.
Chairperson, allow me to quote the President of our country, His Excellency J G Zuma, while addressing the Copenhagen Climate Change Conference. He said, and I quote:
Climate change is a practical matter for the developing world ... Developed countries are historically responsible for 80% of the current emissions in the atmosphere. Developing countries are most affected by climate change and are least capable to adapt to the impacts. As they justifiably pursue their own development paths, it is expected that developing countries' emissions will increase.
In recognition of the reality of climate change, the ANC Polokwane conference resolved to recognise that climate change is a new threat on a global scale that places an enormous burden upon South Africans and Africans as a whole.
In recognition of the undisputed reality, the conference resolved to set target reductions of greenhouse gas emissions. This is part of the ANC's responsibility to protect the environment and promote sustainable development, and to participate in sharing the burden with the global community under a common framework for action.
The Constitution makes it important for the state to "... respect, protect, promote and fulfil the rights in the Bill of Rights", thus imposing upon it the obligation to protect the rights of the citizens to a healthy and clean environment.
In that regard, government is enjoined to ensure that the impact of climate change is rolled back and that alternative forms of energy are forthwith explored and added to the energy grid in a negation tactic progressing towards the total elimination of fossil-fuel-based energy production. This should be done either through coal combustion for electricity production purposes or industrial production inventories.
In complying with that imperative, we are pleased with the strategic plan and the speech presented today in taking the country forward despite the challenges identified.
Hon members, the budget as presented is in line with what has been identified by the ANC and the Minister of Finance, to mention but a few examples: support for labour-intensive industries through policy interventions, skills development, public employment programmes and a rural development strategy.
The Minister of Finance, in taking these things forward, further highlighted the obligation to assist industries to manage scarce resources more efficiently and to reduce greenhouse gas emissions through the appropriate pricing of energy. He saw this as a requirement for enabling investment in sustainable technologies. In this regard, he said, and I quote:
Green economy initiatives will create new opportunities for enterprise development, job creation and the renewal of commercial and residential environments. This must play a part in our new growth path.
The demand for green energy in South Africa cannot be an opportunity for other countries to increase their exports to our country, whilst turning our economy into nothing more than a warehouse for assembling and distributing finished goods. It is incumbent upon our government not only to ensure that intermediary and final goods are produced by South African firms, but also to ensure that the skills needed to produce such inventories are produced and used locally.
In that regard, South Africa will indeed create jobs, attract investment as a result of increasing her use of clean energy and in the same vein, be able to ensure sustainable energy supply.
The ANC is committed to ensuring a sustainable economy, where all South Africans, present and future, realise the right to an environment that is not harmful to their health and wellbeing. In doing so, the question of energy utilisation should be explored further in order to ensure that posterity is neither burdened with energy liabilities nor deprived of energy reserves due to overutilisation of energy resources.
The ANC is further committed to mobilising the public, business and other players to act responsibly and save energy, both collectively and as individuals, including through a mandatory national energy efficiency programme.
Hon Minister, your strategic plan commits the department to the continuation of the electrification programme to effect socio-economic development, job creation and poverty alleviation as well as addressing the past imbalances. The strategic plan views this programme as a vehicle for the department to achieve universal access in formal households by 2014. Indeed, on the programme of Taking Parliament to the People, what we have seen and the outcry of the people of the Greater Tubatse Municipality in Limpopo, will definitely be a thing of the past.
Energy plays an important role in the lives of the people who use it in different forums for various purposes. However, the disparities in modern energy provision brought about by the lack of access to infrastructure impact largely on poor urban and rural people. In the rural areas, women are the main users of fuel wood. Woodlands have been depleted in many areas while in others they are under heavy pressure.
The campaign for communities to save energy through using few appliances will assist the communities not only through savings in energy consumption expenses, but also in lowering the demand for electricity. On the other hand, human settlements, including the rural ones, should be electrified to ensure their integration into the main economy. [Interjections.]
Chairperson, we indeed commend what has been done for the people of Ezingolweni. It is indeed important that reliance on paraffin and other such unsustainable yet expensive sources of energy should indeed be phased out and replaced with universal electrification. In this regard, a case is for the building of more production capacity by Eskom and other envisaged players in order to reduce greenhouse gas emissions and be responsible global neighbours. [Interjections.]
In conclusion, Chairperson, allow me to conclude by quoting the Minister on her strategic overview statement ... [Interjections.] The ANC supports the budget. I thank you. [Applause.]
Chair, on a point of order: Is it parliamentary for another member to refer to a speaker and say that he is lying? Hon Gunda is shouting here, saying: "He is lying".
Hon Chair, I did not say the hon member is lying. That is why I asked him: "When?"
Which member are you referring to? Because I do not have the benefit of having heard hon Gunda. May I first establish something? Hon Gunda, is it true that you said to the hon member that he is lying? Hon members, can we just refrain from using words that will undermine the decorum of the House and allow the member to conclude his debate, please?
Thank you very much, hon member. May I, therefore, take this opportunity to call on hon Minister Patel to conclude the debate. [Applause.]
Hon House Chairperson and hon members, a number of very helpful ideas and many supportive comments have been made in the debate, and there appears to be a wide consensus on the importance of the green economy.
Hon Adams has cautioned us to go beyond abalone. I am happy to report to him that the programmes that we have in a number of areas will attempt to focus on the broad range of aquaculture and we hope that this can be an important part of job creation in coastal communities.
He also referred to the importance of acting firmly against price collusion. I am happy to advise hon Adams and members that we took action over the last number of years and eight motor vehicle companies have paid R51 million in penalties as a result of the work of the competition authorities.
Four airlines have paid about R108 million and three companies were levied with penalties totalling a combined R340 million for fixing the price of bread.
Hon Lees has said he is not convinced that we need economic development departments. I am happy to advise that in the province where the DA is in government, it does indeed have an economic development department. I am also happy to report that that department has asked us to work closely with it in addressing the economic challenges of the province.
More seriously though, hon Lees has raised the question about economic planning. I would like to point out that we put ideology aside and look at the facts out there in the world. Some of the fastest-growing economies in the world, that of China, India, Korea and other countries, have very substantial economic planning capacity that is available to the modern state and, therefore, outperformed many economies that have not had that capacity.
Finally, I would suggest to hon Lees most respectfully that simply repeating the mantra of deregulation doesn't constitute coherent policy. The experience out there in the world has been that countries and governments have to grapple with the right balance between the state and the market.
To find that balance is an evidential issue; it is based on the evidence before us. Indeed, the simplistic cause for deregulation lies at the very heart of the global economic crisis. The failure of government to effectively regulate financial markets has caused enormous damage to growth and to our joint efforts to address the challenges of poverty all over the world.
I have taken note, hon members, of the various comments that have been made with regard to particular provinces. In respect of the Northern Cape, I would say to hon Sinclair that the province is depending very highly on the primary sector. We need more balanced economic growth in the Northern Cape, but we have to do this while being mindful of the locational and physical challenges of the province.
We think there is an enormous opportunity for a major energy initiative. My colleague, Minister Peters, has spoken about the work that her department and others are doing to bring a large solar generating capacity on stream. We are now conducting studies to see how feasible this is.
A number of members have spoken well about the challenges of jobs. The hon Mnguni and hon M B Khoza have elaborated on aspects of this. I would like to make a point in support of what the hon Khoza has said. Take a photograph of Sandton and Lubala and compare them: one country, two realities.
What that points to is that economic growth, important as it is, is not sufficient. We need high and sustained economic growth. You need development policies that ensure that the growth takes place equitably across the country and that growth draws in opportunities for decent employment for the poorest South Africans. I believe the comments made by hon Khoza are particularly appropriate to that challenge.
You have also pointed, hon Khoza, to the importance of the economic agencies in KwaZulu-Natal and elsewhere. We have a challenge as far as economic agencies are concerned. Economic agencies are part of the machinery that is available to the public sector, but some degree of disconnection has begun to develop between the plans of Cabinets, whether it is a national Cabinet or a provincial cabinet, and the programmes and activities of many of the agencies. We need to find ways in which we can reconnect these so that we develop accountability.
Accountability would have at least four or five characteristics to it. Firstly, it would be to ensure that we have proper and tight oversight. Ultimately, the shareholder, the public sector, must take responsibility for the agencies that act in the name of the public. Secondly, there must be clarity on the mandate; if the agency knows what it is that the government expects from them and what their shareholder expects, then their conduct must be aligned to the requirements of their mandate.
Thirdly, we need to address the funding models of a number of the agencies to ensure that we have the sustainable capacity to finance the industrialisation and other economic development challenges. We have done some work now, looking at Brazil and Germany, to see what the underlying industrial funding model is that these economies are using to grow their manufacturing sector faster.
Germany is arguably the world's most competitive and advanced manufacturing sector. So, we are learning from their experience and seeing how we can catch that experience and share it with our development finance institutions, DFIs, and how we can get the Industrial Development Corporation, IDC, and other institutions to benefit from that.
Finally, it requires a regular evaluation of the impact of our development agencies at national, provincial and municipal level. Also, perhaps we can share a lot more of the joint work on this issue.
Hon Walters made two comments; one was on the importance of the green economy and I'm glad that hon Walters is supporting the government's thinking on the green economy. However, hon Walters has said, or certainly implied, that rural poverty had been caused by what he calls "the neglect of the ANC". This is a stunning denial of our history and disrespect for the facts because it implies a model that says that under apartheid, before the ANC came into power, there was a wealthy, prosperous and happy rural population in the homelands.
The reality is sadly not so. We sit with the legacy of migrant labour, poor infrastructure, weak skills and land dispossession. Our challenge as government is to reverse all of that. If we are saying, and if our paid people are saying that we must make this a greater priority than it has been in the past, then as the government we agree completely.
We have five priorities and we have elevated rural development to one of those five. We have created a dedicated Ministry to address this issue and we are working collegially to strengthen rural development.
In conclusion let me say that the challenges that we are facing cannot be addressed only at national level. They require fundamentally a better and a more effective system of intergovernmental co-operation and co-ordination. When national, provincial and local government work well together; when we take our separate resource envelopes and we try to find ways in which we can synchronise that; when we find ways of avoiding waste and duplication between the three levels of government, we can release the resources to address the challenges of our people.
We owe that to the people of Lubala, we owe it to the people of Dimbaza and we owe it to the people in each of your provinces. Thank you very much. [Applause.]
Chairperson, I think I need to indicate here that I thank all the participants; and particularly the chairperson of the select committee for the way in which he drives the work that is intended to make it possible for us to do what we have set ourselves to do: to create a better life for all.
In particular, in this instance we are saying that we would work with all the progressive forces to make it possible that we can do much more to improve the lives of our people.
Chairperson, I would be failing in my duty if I did not indicate also what the department is doing in relation to issues of the targeted groups like gender and the youth. I just want to indicate here that the department has started facilitating aggressively to show the participation of young people and women in the energy sector.
I need to indicate that because of the work that the department is doing in the energy sector, and by also encouraging the skills development programme and so being able to produce quite a number of young people who are interested in the nuclear sphere, we are going to be the host of the International Youth Nuclear Congress, which is going to be held immediately after the World Cup in South Africa.
This will bring all the young people who are interested in the nuclear field together on the shores of South Africa to make it possible that we can discuss the future of nuclear energy and make sure that we can produce electricity; that we make it possible to use nuclear energy for medicinal interventions and to get people fresh water and sustain household food security.
The department is also pleased to announce that it has already started to enjoy the benefits of its efforts in facilitating the empowerment of women through their participation in an energy and oil project in Bethlehem. This project is called the Bethlehem hydroelectric power scheme and was duly launched by the Deputy Minister of Economic Development, Ms G L Mahlangu- Nkabinde.
I also want to indicate here, ladies and gentlemen, that we are committed to ensuring that as South Africa we participate in ensuring that we make a success of this green economy. Those who were monitoring the economic developments around the economic meltdown would have realised that stats indicated that more jobs were created in the energy sector whilst the other sectors were shedding jobs. It would be wrong for us as South Africa not to grab this opportunity with both hands.
I want to indicate once more that it seems that some of the members, when they don't belong to the ruling party, become selective in their listening. I just want to say that listening is a skill. If you listen you will hear well.
I don't know why, hon Lees and hon Walters, you speak about Eskom's monopoly. We have said it several times - including last year when the President said it in his state of the nation address when all of you in this House were present - that we are establishing an independent system and market operator to be almost like a competitor to Eskom. This is because we are trying to break the monopoly of Eskom, a state entity.
Where have you seen that government actually says that they realise that we cannot have a state entity being a referee and a player! We are going to create another entity that is going to buy this power from the independent power producers. This will make it possible for everybody and every stakeholder to have access to the grid.
So, I just wanted to indicate that we are busy with legislation to make it possible that this state entity is established. We did indicate that within the next six months we are going to have an interim arrangement that will make it possible to start signing up the power that is generated through the wind and other energy sources that will be coming to the fore.
As I have said, I will indicate here that listening is a skill. We did indicate that we have done the feasibility study with the Clinton Climate Initiative in the Northern Cape for concentrated solar power. We are going to make it possible for the independent power producers also to participate, because if we create an industrial solar park we will be creating one zone where everybody will participate.
This is almost like creating a Coega in the Northern Cape, but for solar power in this instance. So, whoever is interested would not be doing environmental assessments because it would have been done for the entire industrial zone. We are saying that we are also creating this opportunity for all those who are interested to come and buy into this initiative.
The Minister of Trade and Industry released the new Industrial Policy Action Plan Part 2, Ipap 2, within which are located issues related to the green economy. The Minister of Water and Environmental Affairs has released indicators of when exactly the green economy policy documents will be released so that we will then be able to know the exact areas that have been identified for these green initiatives. This is because a green economy is an indication that we are alive to the environment, we do want environmental sustainability and we want to protect the environment for generations to come. We know that we are custodians of this earth for the generations that are yet to be born.
We, therefore, are responsible leaders who are saying, "What can we do so that we don't have the challenges that we have today that were created by climate change, because of reckless industrial development?"
We are actually saying that it would be wrong for us not to learn from the mistakes of the developed countries, in terms of driving development greedily and selfishly. As my comrade has said, super greed created the challenges that we have today. So, we are saying that we need to be responsible and think about those who are still going to come after us.
When we were holding the Climate Change Conference here in Cape Town, there was a child who told us that he doesn't want to go and live on the moon or somewhere else on a planet that he doesn't know. And so he asked us to protect this planet so that even his grandchildren could also live on mother earth - a nine-year-old! So, it is up to us as leaders to make sure that we are alive to the challenges of the environment. The hon Walters also spoke about the majestic Congo. Remember that we are in South Africa and the biggest rivers we have in South Africa are the Vaal and the Orange Rivers. We are also working together with the Department of Water Affairs to make it possible that going forward - whatever dam development there is - we are going to ensure that there is integration in terms of hydroelectric power generation.
However, we cannot have a situation where we as South Africa can say that we are going to bulldoze our way into the Congo and build a hydro scheme there. We need the partnership of the Congolese and that is why we are working together with the other four countries, including the Congo, to be able to develop the Western Power Corridor, Westcor, initiative. We are working with them.
I am saying that we are doing it because we want to make sure that within the Southern African power pool, South Africa is an equal partner with the DRC and the other Southern African Development Community, SADC, members. We would like to make sure that all the water on the continent and particularly in the region would be used for the benefit of creating energy.
However, we cannot just go in there without getting the support, without working together with the Congolese, because we cannot only focus on using that water for hydro schemes. We need to be able to look at a continental or a regional integrated plan. Now, on the 29th there will be a meeting of the Ministers of energy in the SADC region. One of the key agenda items will be Westcor, under which Inga 3, the Kunene River and the majestic Congo fall; so it is important that you understand that issue.
You would also remember that in the case of the Amazon River no single country can benefit from it without making sure that the seven other countries that share the waters of the Amazon River also benefit from it. So, members should not come to the House and raise issues that they know are not true.
Chairperson, I just want to take this opportunity to thank the chairperson of the select committee, members of the committee, departmental officials, my colleagues in Cabinet and President Zuma for his foresight in leadership to ensure that energy can be central.
We know that energy is the lifeline of all socioeconomic development imperatives. Without energy one would not be able to give birth to a healthy child, and without energy one would not even have a decent funeral. So, it is important that you understand that from conception to the grave we would be part of your daily life.
That is why it is important that when we debate and participate here we should remember that this is about people's lives and the life of economies. And it is about making it possible that we can grow the economy. That is why in working together with the Minister and his team we are going to make it possible to create the number of jobs that we set for ourselves. We set ourselves a target of 10 million jobs in the next couple of years that will come directly from energy.
It is important that we understand that energy will make it possible to live, but that it can also contribute to the quicker degradation of the environment. That is why we say that it is important that we become holistic, integrated and look at every other aspect of our daily lives.
I want to thank members for participating in this debate. We should also continue with the debate about electricity generation in South Africa, and about how much it costs before we can come here and talk about Hitachi as if we are so fixated on Hitachi.
Hitachi gave their story; why don't you listen to them? Why don't you listen to Chancellor House? Why don't you go to the ANC and get their side of the story about this thing? [Applause.]
Debate concluded.