Chairperson, once again I feel a little bit embarrassed that I have to take you backward on the programme. So, I want to sincerely apologise to you and to the House as well.
The response to the question raised by Mr De Beer is that a joint prefeasibility study undertaken between South Africa and Namibia has identified the construction of a dam near Vioolsdrift as a viable alternative to increase the available water yield from the Orange River.
However, a feasibility study to confirm water demands, the environmental flow requirements, optimisation of the size of storage that is required and the engineering design and cost of development is still required. So, there is still outstanding technical work that should reinforce the initial sense that we have as a department.
Prior to this feasibility study, both countries will embark on an initial baseline environmental monitoring of the river this year. Currently, there are ongoing negotiations with Namibia regarding the sharing of costs of the feasibility study, as well as the principles for sharing development costs and sharing water resources. Thank you, Chair.
Thank you, Mr Chairman. Minister, with regard to the funding required for this dam, would there be any implications for the Lesotho Highlands Water Project? In other words, would there be a trade-off between the schemes or is that not an issue?
Chairperson, there will not necessarily be a trade-off, hon member. Maybe this is a prediction of certain things that will happen in the future if you do well in your election campaign. [Interjections.]
No, it is not going to be like that. These countries have been working together, even on the Lesotho Highlands Water Project. We have, for some time now, been eyeing that kind of arrangement for the Orange River itself. So, there is some form of working together. I don't know what you actually mean by "trade-off". But the Lesotho Highlands Water Project remains that project. If there is to be a second phase of that project, we will then have another process, and that process is already under way. So, there is not going to be a trade-off, if you mean it in that context.
If we need funding, of course, the manner in which we have been funding projects of this magnitude - through the TCTA, the Trans-Caledon Tunnel Authority- will still prevail, even for this particular project. This is because the TCTA is not confined to only helping Lesotho. We will look at the same model with other projects of this size - that is, raising money from the bond markets and so on. Thank you.
Hon Bafer.
Not Bafer; Bafer must be a soccer star. [Laughter.] I am just Faber, the German Faber.
Yes, I'm trying to memorise your name.
Chair, in the Orange River system, where we in the Northern Cape always suck on the hind teat of the cow, there was a possibility a year or two ago that a dam would be built downstream. We would like to find out from the Minister if that possibility still exists.
I did not get the question from Mr Faber very well. Could he repeat the area that he is asking about?
Could you repeat that, Mr Faber?
It was from the Upington area down to the Springbok area, more towards the vast areas. They were speaking about perhaps building a dam in that area.
Is it clear, hon Minister?
I don't have those details yet, Mr Faber. I will come back to you in that regard. However, I know for a fact that the area in which the De Beers mining shaft is - where the Orange River divides Namibia and South Africa - has had some activity in terms of how we share the water in that area. Should we look at constructing a dam or should this dam also be an answer to that? But I will get the actual details of this. This is my old knowledge of the story. I don't know what the latest developments on the matter are as we speak. But I promise to come back with that information. Thank you.
Chair, I'm sorry that I have to harp on about the Lesotho Highlands Water Project. But I'm from the Free State province, so I'm interested in this.
We have the Katse Dam there, and I think it has been agreed that a second dam is in the process of being built. However, the overall Lesotho Highlands Water Project makes provision for three dams eventually, or there is a possibility of a third dam. Has that been explored? Do you think that is a possibility, Minister? Thank you.
This has been explored and it is a possibility. That is what will constitute phase two.
Chair, since we are talking about building dams and the scarcity of water and so on, especially in a place like the Eastern Cape province, I would just like to ask the Minister, as I think I did in my debate speech, whether there is any price increase for water in the pipeline and when will it be effective. Thank you, Chair.
That sounds like a new question altogether. When we ask supplementary questions, Mr Feldman, they should deal with the Questions written on the Paper. So, I don't allow new questions.
Chairperson, I would like to ask the Minister whether there is a memorandum of understanding between the two countries, and what the percentage of the budget is that will be shared for building the dam.
Chairperson, there is a standing co-operation agreement in this regard. But the details of working out cost-sharing will come when the business plan has been completed. I think it would be premature for me to give a response on how we will deal with that matter. However, there is a mechanism to work out the cost- sharing burden between countries. Fortunately, the experience that we gained from the Lesotho Highlands Water Project will guide and inform us. But this is still very much in the early stages. These issues come almost towards the end of the process.
In spite of the fact that the Chairperson ruled that I should not answer the question, I am tempted just to say one thing. There is no price increase for water tariffs in the pipeline. This is a long process that starts with the ANC and goes to all stakeholders, then there is consultation with all players, water users and the society of South Africa at large. We cannot just increase water tariffs because any increase in this has an inflationary effect. So, there is no way that we can just take this lightly because this is not a decision we can take lightly.
But I want to say that water boards, on an annual basis, do increase the tariff in line with annual inflation. But this is not a general increase in the price of water. If we were to increase the price of water by way of a general increase, it would then have an impact on the tariffs that the water boards charge.
In other words, the percentages that they demand now to increase their tariffs annually would then be even higher. Let us make an example of the 18 times that has been touted in the media. If we were to do that, it would mean that the prices that we have now would become 18 times higher. When, a percentage is put on that, one would surely come out with a bigger amount.
So, I'm saying that we cannot take that lightly. That is why I was tempted to answer this question, so that people are clear. But if hon members want to pose a new question on this matter, I can come back and explain. Thank you.
Okay. I am sure your temptation has worked for Mr Feldman. Thank you very much, Minister.
State of readiness of social grant payment system, strategies to contribute towards poverty alleviation and results of strategies
27. Mrs R N Rasmeni (ANC) asked the Minister of Social Development:
(1) With reference to the statement made by the President in the 2010 state of the nation address, that an additional 2 million children will access government social grants, (a) what is her department's state of readiness to accommodate these children into the system of social grant payment and (b) what strategies has her department put in place to contribute towards poverty alleviation;
(2) whether these strategies are yielding the intended results so far; if not, why not; if so, what are the relevant details?