Chairperson of the National Council of Provinces, Ministers present here, premiers present, the Premier of Limpopo in absentia, MECs, permanent and special delegates, traditional leaders, ladies and gentlemen, I greet you.
This month, which celebrates human rights, is indeed an important milestone in our country, as it not only marks the 50th anniversary of the Sharpeville and Langa massacres as the most important events of the liberation struggle but also acknowledges the progress we have made to restore the dignity and rights of all South Africans. I want to take this opportunity to commend the National Council of Provinces, NCOP, for having taken a decision at this time, during this month, to bring the people's Parliament to where it belongs, to the people.
The national orders, the highest awards that our country bestows on its citizens and foreign nationals who have contributed to our nation's attainment of democracy, as well as building democracy and human rights, were awarded to three distinguished Limpopo veterans and stalwarts who distinguished themselves in the struggle for justice, democracy, human rights and development. These recipients include Mr Tlou Theophilus Cholo, an activist and public representative in his own right, Mr Rashaka Frank Ratshitanga, and Ms Lydia Komape-Ngwenya, a former Member of Parliament, and many others. It is through their sacrifices and endeavours that today we can talk about the freedom and the democracy that we share.
Again I commend the NCOP for having brought this programme at this time and having chosen Limpopo because of the contribution made by these stalwarts and many others whom we all know. It was also in this province that the ANC's 52nd conference was held and ground-breaking resolutions were passed to accelerate service delivery and to further democratise the state in pursuit of the noble objective of a better life for all. We reaffirmed our commitment towards a developmental state that is responsive to the people's needs and allocates resources to fight poverty, inequality and social deprivation. As our first democratically elected President, Tata Nelson Mandela, put it in his address to the US Congress on 26 June 1990:
We must also make the point, very firmly, that the political settlement, and democracy itself, cannot survive unless the material needs of the people, the bread-and-butter issues, are addressed as part of the process of change and as a matter of urgency. It should never be that the anger of the poor should be the finger of accusation pointed at all of us because we failed to respond to the cries of the people for food, for shelter, for the dignity of the individual.
These important events are very appropriate for the 2010 Division of Revenue Bill that the NCOP is considering today, as the allocations contained in this Bill are intended to restore the dignity and rights of all South Africans by catering for services such as education, primary health, housing, water and sanitation, and electricity. It really makes it important that our oversight bodies, such as this Council, the legislatures and the National Assembly, use this legislation and all other information that National Treasury generates to ensure that the goals that many of our people in the country fought for during the liberation struggle, including the stalwarts from Limpopo, as I have identified, are realised.
In terms of section 214 of the Constitution, government needs to ensure a transparent and equitable system to divide nationally raised revenue between the three spheres of government. The Division of Revenue Bill that is before us today and its underlying allocations are the culmination of extensive consultation processes between national, provincial and local governments. Of the R112,2 billion additional resources available for spending over the next three years, national departments will receive R56,2 billion, which is about 50,1%. Provinces will receive an additional R45,6 billion, which is 40,6%, and municipalities will receive R10,4 billion, which is 9,3%.
The Division of Revenue Bill that was tabled in the National Assembly by the Minister of Finance on Budget Day was, as we all would recall, for the first time processed in terms of the Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009. A report was tabled with the Budget, explaining how the division of revenue and National Budget gave effect to the recommendations contained in the committee reports of the 2009 Medium- Term Budget Policy Statement. In that, we also indicated the reasons for taking this into account, as well as those recommendations that were not taken into account. So, I am happy to announce that the recommendations by the Select Committee on Appropriations were taken into account when we processed it, and responses were provided.
This Bill covers in detail all transfers to be made to provinces and municipalities over the next three years. The explanatory attachments also contain detailed information on the formulas for the provincial and local equitable share allocations and a detailed framework on each conditional grant to a province or municipality. However, allow me to caution that certainty of flows alone is not sufficient to ensure that services are delivered to our people.
In light of the need to speed up progress on South Africa's developmental challenges, government is now shifting away from focusing on activities to targeted outcomes to improve service delivery and increase accountability. That will become the focus of policy and implementation. These objectives, with associated activities and defined targets to be reached by 2014, have helped shape the 2010 Budget. It is important that all national and provincial departments, as well as municipalities, cut nonessential expenditure from their budgets and prioritise activities that will lead to improved outcomes.
Chairperson, let me turn to some of the highlights of the deliberations in the Select Committee on Appropriations on this Bill that the House is considering today.
Some of the issues that were raised by those who made representations to the committee point to the following pertinent matters about our budgeting, financial management and performance monitoring system: Firstly, and most importantly, the deliberations highlighted the importance of the NCOP in exercising its oversight role.
Secondly, the discussions highlighted not only matters of capacity and quality of spending but also spending pressures faced by provinces and municipalities. I am told that members of the select committee raised concerns regarding the ability of certain provinces to deal with costs associated with the implementation of the occupation-specific dispensation for health and education. Concerns were also expressed regarding the funding of smaller municipalities that struggle to maintain institutional capacity for effective local governance and administration. The lack of sufficient road maintenance was also highlighted as a key area of concern.
Thirdly, the latest available data needs to be used to determine grant allocations to individual provinces and municipalities in order to ensure that service delivery responsibilities are appropriately matched with resources.
Lastly, discussions also focused on the effectiveness of conditional grants currently in place. The importance of ensuring that grants' objectives are met prior to such grants being withdrawn or abolished, such as those that cater for water, sanitation and electricity facilities in schools and clinics, was stressed. The importance of transferring national offices communicating to receiving offices the qualifying criteria and grant conditions prior to the commencement of the financial year was also emphasised.
The committee supported the introduction of a number of new conditional grants to provinces and municipalities, such as the Rural Household Infrastructure Grant. These recommendations will be taken forward in subsequent budgets. The need to ensure an equitable division of the available resources to individual provinces and municipalities is one of the founding principles of our intergovernmental fiscal system.
The equitable share formula relating to provinces and municipalities therefore need to be appropriately structured. In other words, it should adhere to the principles of equity, efficiency, spill-over effects and facilitating democracy.
A review of the provincial equitable formula is under way that will, amongst other things, focus on education, health and social development, provincial infrastructure, which includes roads, economic services, governance and administration. The review should be completed in time to be adopted in the 2011 Division of Revenue Bill.
Similarly, a review of the local government fiscal framework and equitable share formula are under way in order to more appropriately deal with the different challenges faced by the 283 municipalities. Accordingly, historical backlog service delivery responsibilities and socioeconomic and demographic realities - a one-size-fits-all, therefore - does not recognise these differences and that is why we are looking at it.
The review, amongst others, also includes a review of all conditional grants to local governments and that is one of the recommendations that I indicated will be taken into account in the next financial year.
With regard to provinces, the increase of a baseline for the next three years to provinces is to sustain the social progress made in recent years to meet government's broader developmental objectives and mitigate the effects of the current economic downturn on the poor. Of the additional allocation to provinces, R33,9 billion is added to the provincial equitable share and R11,7 billion to conditional grants. Including these revisions, allocations to provinces will now amount to R322,9 billion in the 2010-11 financial year.
These allocations are in line with government's efforts to upgrade the quality of basic education, improve health outcomes and life expectancy at birth and develop sustainable rural communities and human settlements. An amount of R12,9 billion is intended to step up service delivery in health and education, and to implement the occupation-specific dispensation agreements in these sectors. Also, an additional R18 billion is intended for the carry-through costs of the 2009 public service salary agreements.
In support of government's commitment to step up efforts to deal with HIV and Aids decisively, R8,7 billion is also added over the next three years to ensure sufficient resources are available for government to deliver on its commitment announced on World Aids Day.
Turning to local government, over the next three years municipalities will receive R210,4 billion, including in-kind allocations and the sharing of the general fuel levy with metros, or an additional R12,2 billion. These additional allocations build on previous spending programmes and are directed to the local government priorities, namely the local government equitable share, which receives a further R6,7 billion to protect the poor from increased electricity prices and secure the delivery of free basic services to poor households.
Municipal infrastructure-related spending is allocated an additional R2,5 billion over the next three years. A process is under way to accredit large municipalities to administer national housing programmes. This policy shift should improve co-ordination and alignment of interventions in the built environment. Reforms are also under way to introduce programmes targeted at rural areas. Over the Medium-Term Expenditure Framework R1,2 billion is made available to cater for the roll-out of on-site water and sanitation services to very poor households where conventional connector services are not viable or appropriate.
In conclusion, Mr Chairperson, I would like to thank the hon Chairperson of the Standing Committee on Appropriations, Mr T Chaane, for his leadership and the members of the standing committee alike for their hard work in the processing of this Division of Revenue Bill.
Chairperson and members, it is clear that the allocations contained in this year's Division of Revenue Bill should put government in a better position to accelerate delivery and improve the efficacy of public services. Thank you very much. [Applause.]
Order! Just before I call on Mr Chaane, I would like to correct the mistake I made this afternoon when we closed the public hearing. Our sitting tomorrow starts at 09:00. Everybody must be seated by 08:30.
Ke kgopela set?haba seo se lego gona mo, le no bot?ana kamoka gore re tla thoma ka 09:00 bosasa. Ka 08:30 re swanet?e goba re dut?e ka mo. Motlat?a Mopresidente o tla thoma go bolela ka 9;00. Re tla goelet?a le mo radiong mathapameng a lehono gore bao ba ?et?ego ba sepet?e ba kgone go kwa. Ke a leboga. [Legofsi.] (Translation of Sepedi paragraph follows.)
[Please tell those who are not present that tomorrow we will start at 09:00. Everyone must be seated at 08:30. The Deputy President will start his speech at 09:00. We will also announce it on the radio this evening for the message to reach those who are already gone. Thank you. [Applause.]]
Chairperson, hon Deputy Minister, hon premiers, hon members, ladies and gentlemen. On 17 February 2010 the Minister of Finance, hon Pravin Gordhan, tabled the Division of Revenue Bill together with the Budget. This was in accordance with the relevant sections of the Money Bills Amendment Procedure and Related Matters Act of 2009, the Constitution and the Intergovernmental Fiscal Relations Act of 1997.
Following the tabling of the Division of Revenue and the engagements with the national Department of Treasury, the Select Committee on Appropriations, in accordance with section 4 of the Money Bills Amendment Procedure and Related Matters Act of 2009, held public hearings on 5 March 2010.
The committee received written and oral submissions from the Department of Higher Education, Department of Basic Education, Department of Energy, Department of Health, Department of Rural Development, SA Local Government Association, Salga, Financial and Fiscal Commission, FFC, Aids Law Project, Eskom, SA Institute of Chartered Accountants, the City of Cape Town and inputs from all nine provinces.
Therefore, it follows that today marks an end to the final leg of the very involved budget process of consultation on the Division of Revenue Bill as presented by the Minister of Finance. Today's debate will therefore further clear the way for the release and transfer of the equitable share of revenue to all three spheres of government from the beginning of April this year.
Government resolved many years ago to create a better life for all and to roll back the frontiers of poverty. Through experience and rich history of consulting the people, the ANC-led government resolved further that much more can be done to serve the needs and interests of the people with the limited and scarce resources available.
The strategy of maintaining focus on key priorities by involving every citizen was employed and popularised through the coming into being of the ANC's slogan of "Together we can do more." Indeed, if we all work together, irrespective of our party-political affiliations, doing things faster, better and differently, we can achieve more, as the President said during his state of the nation address.
The President declared this year a year of action. This is a call that we should all embrace if we are serious about improving the lives of our people. One is happy that the Minister of Finance has taken such bold action by tabling a Division of Revenue Bill that presents the outlook for a fragile economic recovery and discusses government's medium-term spending priorities.
Therefore, it is upon the recipients of the allocations to take further action in implementing policy priorities and deliver quality services to our people. We expect to see less talk and more action.
It is my view, as said by the members of the Select Committee on Appropriations, supported further by the views of different organisations, departments, persons who made submissions and political parties, that indeed the Division of Revenue Bill has achieved its objectives amidst trying economic turbulence brought about by the dark cloud of recession hanging over the entire world.
This Bill takes into account the national interests of the ruling party to allocate government resources in a manner that will benefit the nation as a whole. It fairly covers the priorities of the ANC as set out in its 2009 election manifesto and reflected in the 2010 state of the nation address.
The Bill takes explicit account of the cost pressures relating to the occupation-specific dispensation agreement in the health and education sectors, policies on HIV/Aids treatment, provision of housing, roads, electricity, water and municipal infrastructure.
The commitment to provide free basic services to the poor is further reinforced by this Bill through a substantial increase in the local government equitable share as well as the introduction of new and different types of grants. This increase will help municipalities to deal with the increased cost pressures of providing free basic services due to increased electricity charges as well as to expand such services to the poor people.
Over and above the increase in the local equitable share it will, over the next three years, benefit substantially from the new rural infrastructure grant that has been introduced to roll out on-site water and sanitation services to poor households, an increase in indirect and direct transfers for the municipal infrastructure grant as well as an increase in the Regional Bulk Infrastructure Grant to ensure that bulk water projects are accelerated to provide bulk water to households in a more sustainable manner as well as drought relief.
Throughout these schemes job opportunities will be created and more of our youth will be employed. It is encouraging to note that all these issues and programmes benefiting from the Division of Revenue are underpinned by the policies of the ANC.
To compensate for low revenue income at rural municipalities, provinces received a fair share of the nationally raised revenue as well as direct and indirect grants to ensure better service conditions for the teachers, doctors and therapists so as to retain skilled and experienced practitioners in these sectors. This includes new grants aimed at subsidising nongovernmental organisations, NGOs, dealing with home-based care programmes, technical secondary school recapitalisation grants to modernise technical schools and the Dinaledi Schools Grant to provide support to these schools so as to enhance the quality of mathematics and science in Grade 12.
As I have already mentioned, the Bill meets the requirements of the law and, under the current economic conditions, this much, with little and limited resources, can be done. We expect much more improvement in the coming years and surely the establishment of the Parliamentary Budget Office will go a long way to strengthen our future work as parliamentary committees.
I am satisfied that with the ongoing engagements between National Treasury, the FFC and all relevant stakeholders issues identified during the consultation processes will be seriously considered and addressed to the satisfaction of all involved. The department should seriously consider recommendations as contained in our report. As we move towards the release of the funds to different spheres of government and, therefore, departments and Parliament, important questions need to be raised. Such questions are: Are all institutions eligible to receive these funds and ready to use them for the purpose intended for? Do they have plans and systems in place to achieve this? The answer could be a quick yes, yet, at a closer look, one might find a different story.
Allow me to remind this House of some of the scandalous things that are in sharp contrast with the above answer. Last week, just three days before Human Rights Day - a day on which we also commemorate the unprovoked brutal killings of our struggle martyrs in Sharpeville in 1960 by the then apartheid police force - in the National Assembly, the head of this country, President Jacob Zuma, was attacked in Parliament by those who became so obsessed with hatred, driven by anger, bruised egos and crazy ambitions.
This small group, under the banner of a party called Cope, was on an attacking spree supported by minority parties whose commitment to the cause of a transformational agenda becomes more and more questionable. If you listen to the speeches of some of these leaders you would clearly hear people crying for the pre-1994 status quo.
Even more strange, laughable and ludicrous is their nerve to launch such an attack on the head of the country in Parliament on the pretext of exercising their constitutional rights. [Interjections.] [Time expired.]
Hon member, your time has expired. You can finish up that sentence. Finish up your sentence. Your time for speaking is over. You may conclude. That's what I'm saying.
As we move for the endorsement of the Division of Revenue Bill we should also commit ourselves to play an oversight role and check how these funds are utilised and root out any mismanagement and expose those who are hell bent on hiding themselves behind their loud voices, shouting war on corruption and mismanagement when they themselves are corrupt and unmanageable. On that note I move for the adoption of the Bill without amendments. I thank you. [Applause.]
Chairperson, the Eastern Cape supports the Division of Revenue Bill without reservations. I want to say today that South Africa is one of the few countries that have systematically developed systems of dealing with the Budget process. It consults with people, stakeholders and Members of Parliament. The final product of the Budget is indeed a product of the people. Having said that, we are not saying there are no challenges. The challenges are huge and they will be with us for a long time because we come from an era that has been bedevilled by racism and everything that goes with it.
The Eastern Cape supports this Bill, but notes the following: The debate takes place when economic crises continue to bare its ugly teeth at citizens of the world, including our country. South Africa has lost close to a million jobs during this crisis. Economists and analysts inform us that the beginning of the end of this crisis is upon us. This is indeed encouraging news. We welcome this because the economy of the country will improve as the crisis diminishes. We are pleased to note that government and the National Economic Development and Labour Council, Nedlac, have already developed strategies to curb joblessness, including making available funds to reskill our labour force.
Budgets have stabilised since 1994. I have mentioned before that there is certainty and stability through the Medium-Term Expenditure Framework, MTEF, process. Provinces and local governments are able to plan ahead on their programmes and projects. This is key to the achievement of service delivery in our country. The Eastern Cape is also encouraged that the Financial and Fiscal Commission, FFC, in our discussions during the public hearings, has acknowledged and brought back the whole issue of the costed norms approach in funding provinces. This, we believe, will go a long way in addressing the real cost or realistic cost of projects or programmes.
Today the Deputy Minister has also alluded to the whole review process of the funding criteria. This, I suppose, will also be accommodated during the hearings or the debates in arriving at the best funding criteria for the country. We are really pleased that there has been a rethink around funding formulas because the Eastern Cape is among the provinces that have suffered the most during apartheid in terms of backlog. The Committee on Appropriations has undertaken to discuss with Eskom the regional electrification programme which affects our province negatively, particularly the Alfred Nzo district in the Eastern Cape. The electrification programmes in that part of the country are slow or nonexistent because of the funding model Eskom is using.
Overall, the Eastern Cape believes that the 2010-11 Division of Revenue brings hope to the electorate. It will be able to deliver some key government priority areas, namely the alleviation of unemployment through the public works programme, providing a better health care system, delivering an improved education system and drastically reducing crime and corruption through an improved and professional criminal justice system. Chairperson, with those few words, I thank you. The Eastern Cape supports the Bill. [Applause.]
Hon Chair, hon Deputy Minister and hon members, there is no doubt that given the constraints placed upon him by the policies of the ANC and its alliance partners, the Minister of Finance has produced the best possible allocation of funds that he could. However, it is unfortunate that the allocations continue the long-standing trend of establishing a social welfare system at the expense of economic development. Economic development is the only way of achieving long-term poverty elimination and the reduction of income inequality. In his article in Focus recently, Prof Fedderke of University of Cape Town, UCT, argues that the stringent fiscal and monetary policy adopted by previous administrations has made funding available, which has been used for the development of the social security system and not for the development purposes of the economy. Thus, there has been reduced spending on key factors such as education, health and housing. The consequences for the country will be devastating as we fall further and further behind our global partners in terms of the availability of a high-quality workforce.
Another consequence of this skewed funding allocation towards welfare will be the inability to increase funding for health, policing and housing. There will be a reduction of funds available for these functions and the high expectations of the poor created by the ANC promises and endless plans without action will inevitably lead to more and more discontent and protest action.
Many in this House would have heard admissions and threats by people making submissions at this week's public hearings - that unless the government delivers on its promises of jobs and service delivery, they will continue to steal or will embark upon theft. What has our society come to when people can publicly, in the presence of Members of Parliament as well as senior members of the police, admit to being thieves or disclose their intention to engage in theft? Is this desperation or is it simply frustration at the lack of delivery on promises made for the past 16 years? I think it is the latter, because to suggest that poor people are thieves is an insult to the millions of poor people who do not resort to crime nor even contemplate doing so.
The local government sphere is allocated the smallest share of revenue. This is contrary to the view of the DA, which holds that as much authority and accountability as possible must be devolved to the sphere of government closest to the people. Local government is the sphere of government tasked directly with the provision of services, which, with some notable exceptions, has failed to meet the expectations of the people and, yet, they get the smallest allocation.
There is the vexed question of conditional grants, whereby the national government dictates to other spheres of government how funds should be spent. The ANC may argue that the municipal sphere of government in particular is beset with poor governance as well as a critical skills shortage. The way to deal with this problem is certainly not the centralisation of power, as is currently happening. The simple and obvious solution is to rapidly reverse the ANC policy of cadre deployment. Only persons of ability and who owe no debt of gratitude for their appointments to the ANC should be appointed as officials.
Despite the urgent need to address the issue of redistribution of land without negatively impacting upon food production, a mere R1,9 billion has been allocated to the Department of Rural Development and Land Reform as compared to the R6,2 billion requested by the department. The question of land reform cannot continuously, Budget after Budget, be effectively put on hold by way of relatively small allocations of funds. There is an urgent need for the remaining and vast rural land claims to be resolved and for both the claimants as well as landowners to be given closure on this process which has dragged on for the past 15 years. Unless funding for settling claims is increased dramatically, there is a distinct possibility that frustrations experienced by both claimants and landowners will increase levels of violence and attacks on farmers and, inevitably, will lead to a lack of food security, as has been the case in Zimbabwe.
Hon Deputy Minister, it is great to hear you say that there should be cuts in nonessential expenditure. May I suggest to you, sir, that your Cabinet colleagues look at a few areas where they could cut nonessential expenditure such as ministerial cars, the presidential jets and high ministerial hotel bills. Perhaps that's where we should start.
In conclusion, I raise the thorny issue of the use of police cars and personnel to escort members of the NCOP over the past few days. Not only do these vehicles and personnel carry out escort functions but they do so with blue lights flashing and sirens blaring. This bullyboy behaviour cannot be justified in our new democratic society. This is the kind of behaviour which one expects of failed states such as Zimbabwe, but certainly not in our new and successful South Africa. [Time expired.]
Your time is over, hon member. Just finish off.
The ANC needs to follow the lead of the DA government in the Western Cape and ban the use of police escorts and flashing blue lights in anything but an emergency situation. Thank you. [Applause.]
Hon Chairperson of the NCOP, hon Deputy Minister, hon members, mayors, councillors, distinguished members who have filled this venue, the North West Province supports the Bill. It is an honour to be offered this opportunity to participate in the debate on the first Division of Revenue Bill of this administration.
When we as public representatives debate the manner in which the nationally collected revenue or cake is divided, we do so in order to make sure that the competing national, provincial and local needs are addressed in a manner in which revenue will be shared equitably. We fully understand that all the needs cannot be catered for at the same time, but consideration needs to be taken of the pressing challenges and needs facing the provincial and local government spheres.
Particular attention needs to be taken to cater for areas that do not have huge capacity to raise their own revenue. Rural provinces and rural municipalities are always negatively impacted upon by the final sharing of the cake or allocation of the national Budget.
One of the priorities of this government is rural development. It needs to be undertaken with the seriousness it deserves. It becomes a challenge when the two spheres of government in rural provinces have to address the challenges faced by the communities with the limited resources they have available at their disposal. It must be kept in mind that the rural provinces and municipalities are always at a disadvantage when it comes to their own revenue-generation capacity.
This division of revenue is debated at a time when national government cannot collect enough revenue due to the recession.
Ka jalo, kwelo tlase ya ikonomi e dira kgatelelo mo pusong ya rona mme go botlhokwa gore le fa maemo a ntse jalo, puso ya bogareng e tshwanetse e netefatse gore porofense le dinaga magae di kgone go bona madi a a ka di thusang go tsweletsa ditirelo pele. (Translation of Setswana paragraph follows.)
[As a consequence, the recession puts pressure on the government. Nevertheless, it is important that the national government must ensure that funds are allocated to both the provinces and the rural areas to ensure service delivery.]
I would like to remind this august House that redemarcation of the provinces impacts negatively on the donating and receiving provinces. The North West province, in this instance, is always negatively impacted upon by this process during every election period. In 2006, the reincorporation of Mabopane, Ga-Rankuwa and Hammanskraal into Gauteng province impacted negatively upon the province in various ways. With the recent reincorporation of Merafong into Gauteng, the North West province has once more been negatively impacted upon. The province always loses high-density areas to other provinces, a factor that dramatically reduces its population. It must also be considered that, although the province has many mines, poverty still continues to increase in the province.
I would like to outline how the reincorporation of Merafong into Gauteng has impacted negatively upon the equitable share allocation to the province. The province submitted budget proposals to National Treasury as expected. These figures were based on the services rendered to the Merafong community. These included the figures of personnel and the statistics of communities that were serviced in that area. National Treasury did not take these proposals or the structural reviews in the final allocation into consideration, as reflected in the Division of Revenue Bill. National Treasury top-sliced from the North West allocation without any consideration for the issues raised above.
Provision for health is one of the priorities of this government and the reduction of its allocation will impact negatively on the delivery of health services in the province.
Ke rata go gopotsa maloko a Ntlo e gore Porofense ya Bokone Bophirima e kaiwa jaaka nngwe ya diporofense tse di sa beeng madi a a bonalang a a lebaneng le tsa boitekanelo. Ga go a nna jalo, lebaka ke gore gangwe le gape fa melelwane e segiwa se?wa, madi a a neng a ka tsweletsa boitekanelo mo matshelong a batho ba rona a feletsa a ngotlega. (Translation of Setswana paragraph follows.)
[I would like to remind members of this House that the North West province is regarded as a province that does not give enough budgetary consideration to health. That is not true; the reason is the new demarcations that happen now and then, which cause financial strain in the health budget meant for our people.]
This situation has worsened with the top-slicing from the provincial equitable share and it will be very difficult for the province to recover from such a negative impact. With little resources available to the province, the delivery of this priority will be compromised to a certain extent. The provincial budget proposals were based on the available statistics which were not considered.
Fa ke lebelela thuto, le yona e tlile go amega ka ntlha ya phokotso ya madi a a neng a tshwanetswe a abelwe porofense ya rona. [In my view, education will be adversely affected due to the decrease in budget that was supposed to be allocated for our province.]
The same approach was followed when dealing with health and the challenge we face is how to make up for the money that we budgeted for the provision of services to our people as a provincial government without the funds that have been unjustly cut from the final allocation to the province.
Tota go tlile go nna boima gore re kgone go fitlhelela batho botlhe ba porofense go ka tlisa ditirelo tse di maleba segolo jang mo thutong le mo boitekanelong fa Matlotlo a Boset?haba a sa re thuse ka matlole a mangwe go fitlhelela maikaelelo a rona. (Translation of Setswana paragraph follows.)
[It is truly difficult for us to be able to render services to all the people of our province particularly in the education and health sectors, especially when the National Treasury does not help us with funds.]
A poor and rural province like the North West province with a low revenue base cannot provide improved service delivery without the R889 345 million that has unjustly been transferred to Gauteng as a result of the redemarcation process. We can do more with this money if it is redirected to the province. If not, National Treasury must provide additional funding that can assist us through this financial year to enable us to cope with the delivery of services.
We strongly believe that with the powers vested in Parliament, as outlined in Money Bills Amendment Procedure and Related Matters Act of 2009, our predicament as a province can be addressed for this financial year. Let us remember that this amount of R889 million can do a lot regarding the delivery of services to the people of the North West province.
Jaaka baagi le puso ya Bokone Bophirima re na le tsholofelo ya gore puo e re e tlhagisang mo kopanong eno e tla utlwiwa le go arabiwa ka mokgwa o o tla tlisang tsholofelo e ntsi go batho ba rona. (Translation of Setswana paragraph follows.)
[We, the people and the government of the North West province, have hope that the views expressed by us in this gathering will be heard and be responded to in a manner that will restore the confidence of our people.]
We are going to improve on the spending of conditional grants during this financial year. We also started putting measures in place to assist municipalities to spend conditional grants. We believe that this effort will go a long way in improving spending of conditional grants.
We have also, as a province, endeavoured to do more with the limited resources available at our disposal. To stabilise the utilisation of funds and improved delivery of services in our municipality, we have invoked section 139 of the Constitution in four municipalities, namely Madibeng Local Municipality, Moses Kotane Local Municipality, Tswaing Local Municipality and Ngaka Modiri Molema District Municipality.
This action was intended to improve the delivery of services to our people and also to spend funds effectively because of challenges that these people were faced with.
Hon member, your time has expired.
Ke a leboga Modulasetilo le set?haba sotlhe se se fa, se se tlileng kopanong ya letsatsi la gompieno. Porofense ya Bokone Bophirima e dumelana le tokomane e e beilweng e ya Molaotlhomo wa go arolwa ga Matlole. Ke a leboga. [Legofi.] [Nako e fedile.] (Translation of Setswana paragraph follows.)
[Ms B P MABE: I thank the Chairperson and the people who are part of this gathering today. The North West province adopts the Division of Revenue Bill. I thank you. [Applause.] [Time expired.]]
Let us make things easy as we do not have a watch. When I hit the table you must know that you have one minute left, and when I hit it for the second time, you must know that your time is over. It will be easier that way.
Hon Chairperson of the NCOP, hon members of the NCOP, ...
... mago?i, set?haba ka kakaret?o, ... [... chiefs, the House, ...]
... it is indeed an honour for us to address this hon House. We address this House well aware of the task that has been squarely placed on our shoulders. We are addressing the House with appreciation and gratitude that you found it in you to visit our shores in line with the aspirations put eloquently during the fifties, namely that "The People Shall Govern".
Ours, hon members, is to ensure that our people realise this necessity. By indicating that the people shall govern, it was definitely not envisaged that this particular power should only end up at the polls. It was also not envisaged that it should end at public hearings and podiums. It was meant that the power should be bestowed wholly on the populace of the Republic of South Africa, without taking into account colour, creed, gender, religious belief, etc. The question that we should be asking ourselves is: Who are these people referred to by the Freedom Charter? It is, therefore, submitted that these people are the most downtrodden the most exploited sections of our society - the poor.
It is, therefore, upon us to ensure that these sections of society, which are composed of workers and the peasantry, become the governing body politic. These sections should determine their future. They should have self-determination and determine the path of their future. It is against the above background that, as the people of Limpopo, we are taking part in the debate on the Division of Revenue Bill for the 2010-11 financial year. As Limpopo we support this Bill.
We are sure that by now, hon members, you have experienced the rural nature of our province. It is indeed in this province that we still experience subsistence farming in its classic form. It is in this province that we find the most poor. It is in this province that we experience lack of facilities for the advancement of the aspirations of the Freedom Charter.
Our people in this province are part of a large section of extremely exploited farm workers who, at times, are even denied the universal right of suffrage by the super profit-making farm houses of this province. It is indeed painful that, whilst producing good agricultural products, they cannot enjoy them lest they are murdered because they are mistaken for baboons that are illegally harvesting products that do not belong to them. The Freedom Charter calls upon us to ensure that the land must belong to those who work it.
As citizens of Limpopo we thought that it is important to indicate that this province is a product of wars of resistance that were waged against the apartheid regime. The descendants of the great warriors like Sekhukhune, Makgoba, Mantatisi, Makhado, Ngungunyane, Modjadji, etc, took it upon themselves to wage "guerrilla warfare" mass action, including the workers' struggle, in continuance of the struggle for the total emancipation of the peoples of South Africa.
It is in this province that we share borders with Zimbabwe, Botswana, Mozambique and, therefore, it follows that instability in those areas will directly affect this particular area. It is against the above background that our people understand and appreciate the call by the Freedom Charter that there should be peace and friendship. Our people understand that they should appreciate and live side by side with foreign nationals.
Therefore, as a province, we would want to impress upon you, hon members, that as you divide the revenue of the country, it should be appreciated that this province is also home to a lot of foreign nationals that originate from as far afield as Indonesia. Therefore, this leads to budgetary constraints in all sectors of government.
Limpopo is one of those areas that experience an acute shortage of water. There is a slogan that says that water is life. It has been said time and time again that ordinarily in our province water is a scarce commodity. Let us ensure that we become innovative in this regard. Let us ensure that we harvest water. Let us ensure that not a single droplet is wasted. Let us ensure that we provide water for all.
Health and social development are key to a stable social order. It is, therefore, imperative that as representatives and messengers of the people we should at all times ensure that we strive to promote healthy social conditions and social living. Once more the government of the Republic has and continues to strive to ensure that the populace of South Africa shares in the Budget of the country.
We would like to indicate our gratitude to the President of the ANC and the President of the Republic of South Africa, Jacob Gedleyihlekisa Zuma, for presenting us with hope in the Division of Revenue Bill for the 2010-11 financial year. In the same vein, we will urge all departments in Limpopo to ensure that they spend their budget fully and wisely. The money as presented should be transparently spent; integrity should be the order of the day, and a process of spending coupled with accountability has to be followed to the letter. Having considered the inputs of the permanent delegates regarding this matter, we support the Bill accordingly. Thank you.
Agb Voorsitter van die Nasionale Raad van Provinsies, lede van die Raad, Ministers en Parlementslede van die provinsiale wetgewers en almal teenwoordig, vandag is 'n baie belangrike dag vir die werksaamhede en die uitvoering van die mandate van die regering verleen deur die Grondwet van Suid-Afrika. (Translation of Afrikaans paragraph follows.)
[Mr M J R DE VILLIERS: Hon Chairperson of the National Council of Provinces, members of the Council, Ministers and members of the provincial legislatures and everyone present, today is a very important day for the functions and the implementation of the mandates given to government by the Constitution of South Africa.]
The Division of Revenue Bill is the most important annual piece of legislation for any province. I want to mention the following documents. According to section 73 of the Money Bills Amendment Procedure and Related Matters Act of 2009, the money bills Act, section 10 of the Intergovernmental Fiscal Relations Act, Act 97 of 1997, and section 76(4) of the Constitution, the Minister of Finance must introduce the Division of Revenue Bill in Parliament. In accordance with these sections, the Minister of Finance, Mr Pravin Gordhan, tabled the 2010 Division of Revenue Bill before Parliament on 17 February 2010.
My province, the Western Cape, will receive 92% of its 2010 revenue in the transfers arising from this Bill. Most other provinces rely on the Bill for an even higher percentage of their income.
Sonder hierdie Wetsontwerp is die hande van provinsies afgekap, met ander woorde, geen dienslewering kan plaasvind nie.
Die manier waarop die land, Suid-Afrika, regeer word, word duidelik voorgeskryf deur die Grondwet van Suid-Afrika van 1995, naamlik 'n federale bestuur en die beheer van provinsies. Die nege provinsies is dus, naas die Nasionale Vergadering, die mees belangrike strukture in die uitvoering van wetgewende magte ten opsigte van die toewysing van geld aan plaaslike owerhede.
Die DA is dus 'n party wat op die beginsels van federalisme geskoei is en daarom waarborg ons dat die Grondwet van Suid-Afrika van 1995 te alle tye beskerm en verdedig sal word. (Translation of Afrikaans paragraphs follows.)
[Without this Bill the hands of the provinces would be tied; in other words, no service delivery would take place.
The way in which the country, South Africa is governed, is clearly prescribed by the Constitution of South Africa of 1995, namely federal governance and oversight of the provinces. Apart from the National Assembly, the nine provinces are the most important structures in the execution of legislative powers in respect of the allocation of funds to local authorities.
Therefore the DA is a party that is built on the principles of federalism and that is why we guarantee that the Constitution of South Africa of 1995 will be protected and defended at all times.]
The Western Cape welcomes the gradual trend of increasing fiscal federalism in our national Budget. Five years ago the national sphere of government spent more than half of the revenue raised. That is 50,3%, to be exact. By next year this will have dropped to 47%, meaning that provincial and local governments will together be spending the majority of national revenue. This shows that our tax money is moving closer to the people it needs to be spent on.
We are however concerned that an increasing proportion of the allocation to provinces is carved up into conditional grants. For 2010 almost one quarter of the money that my province received from the division of revenue comes in the form of conditional grants. This is an alarming trend. The more it continues, the more section 40 of the Constitution, which defines the provinces as distinct from the national sphere, is undermined.
We understand that certain provinces require a heavy hand from national government to prevent them from wasting money meant for service delivery, but we must be wary of limiting the freedom of those provinces that use their proximity to people to better target delivery.
The Western Cape welcomes the review of the fiscal transfer system that National Treasury has committed to complete in time for next year's Budget process. We are told that the review will have a special focus on the economic activity component of the provincial equitable share.
This is a progressive approach that will hopefully result in money being spent in those areas that can ratchet up economic activity, thereby multiplying government spending.
We hope that the review will be in line with the recommendations by the Financial and Fiscal Commission in 2009 that the form of revenue sharing should replace the economic activity component of the formula.
Hierdie aanbeveling sal die DA ondersteun, nadat dit bekend geword het. Dit kan ons verseker. [The DA will support this recommendation once it becomes public. That we can assure you.]
The education component of the provincial equitable share is by far the biggest at 51%. This is appropriate, given the importance of education spending. Importantly, it is also driven by data that is relatively accurate and up to date.
Onderwys is die sektor wat die beste moontlikhede vir ons mense daar buite stel. [Education is the sector that offers the best possibilities for our people out there.]
We cannot say the same about other components that are based on population figures that are neither recent nor accurate. Provinces such as the Western Cape experience permanent immigration as a daily reality. An analysis of the increases in the provincial equitable share over the medium term shows that the Western Cape will receive higher increases in the percentage terms than other provinces, but it is unclear whether these increases are in line with population increase.
More alarmingly, anecdotal evidence suggests that short-term medical tourism is taking place. That is where citizens of other provinces travel to the Western Cape, specifically to use our medical facilities. They come from provinces which received funds for care that they don't provide, while my province provides care that is unfunded.
Ons moet kyk om hierdie funksies, waarvoor daar nie `n mandaat is nie, te beheer, sodat die Wes-Kaap dit kan hanteer en ook die diens kan lewer aan die mense wat in die Wes-Kaap bly. [We will have to look at controlling this function, for which there is no mandate, in order for the Western Cape to deal with it and provide this service to people who are residing in the Western Cape as well.]
We have requested that Parliament be kept up to date on National Treasury's review of the fiscal transfer system as it is completed. The Western Cape supports the Division of Revenue Bill ... [Interjections.].
You still have one minute left. The first hit means you have one minute.
We have requested that Parliament be kept up to date on National Treasury's review of the fiscal transfer system as it is completed this year. We hope that this review helps to secure a fairer share of revenue for the provinces against the circumstances of the provinces.
The Western Cape supports the Division of Revenue Bill on the condition that this review brings the provincial equitable allocation in line with immigration into the province. I thank you. [Applause.]
UMntwana M M ZULU: Mhlonishwa Sihlalo, iPhini likaSihlalo, iPhini likaNgqongqoshe walo Mnyango, oNdunankulu bazo zonke izifundazwe zethu zaseNingizimu Afrika, njengeqembu uma sibuka siyaweseka uMthethosivivinywa wokweHliswa kweziNtela njengabantu abakhe kuleli lizwe laseNingizimu Afrika.
Bese sibeka ukuthi kufanele kube namasu okubheka ukuthi izigebengu ezisebenza kulabo masipala, kohulumeni basekhaya, ikakhulukazi izimenenja nabaphathi bezimali ikhona yini indlela eyenziwayo ukuze bachaze ngokusetshenziswa kwezimali zomphakathi.
Njengeqembu futhi siyakweseka ukuthi uMnyango ophatha izimali, noMnyango Kahulumeni Wokubambisana kanye Nezindaba Zezendabuko, kufuneka ubhekelele kulezo zibonelelo eziya komasipala abampofu njengasekhaya eMelmoth, eNkandla nakuzo zonke ezinye izindawo lapho kunomasipala abancane futhi abampofu kakhulu. Kufuneka kube khona indlela yokubhekelela ukuthi kulezi zibonelelo abanikezwa zona ikhona yini enye indlela abasizakala ngayo, nokuthi bangenza kanjani ukuba bakwazi ukuthola imali, bakwazi ukuzimela ngoba ekugcineni kuyofuneka bazimele ukuze bakwazi ukuhlangabezana nezidingo zabantu.
Njengeqembu seseka izincomo zekomidi elincome ukuthi kufuneka kubekhona lokhu okuthiwa yisibonelelo sezingane ezisezincane, ukuze kukwazi ukuthi nezingane zethu ezisemabangeni emfundo eyisisekelo zikwazi ukubonelelwa emphakathini njengabantu abanelungelo lokuphila.
Mhlonishwa uma ningenazo izindlela zokubheka ukuthi sizintshontsha kanjani izimali zikahulumeni kuyobe kusetshenzelwa ize leze. UMnyango wakho noMnyango Kahulumeni Wokubambisana kanye Nezindaba Zezendabuko ezweni, kufuneka kube nezindlela enizibekayo ekubhekeni amafa omphakathi ukuthi laphaya ebantwini bakithi abampofu njengami bayakwazi ukusizakala. Ngibonga kakhulu. Iqembu lami liyaweseka uMthethosivivinywa wokweHliswa kweziNtela. [Ihlombe.] (Translation of isiZulu speech follows.)
[Prince M M M ZULU: Hon Chairperson, Deputy Chairperson, Deputy Minister of this department, premiers of all the provinces of South Africa, as a party and as citizens of South Africa we support the Division of Revenue Bill.
And we need to state that there should be strategies in place so that those criminals who work at these municipalities - local governments - especially the municipal managers and the chief financial officers, can account for the use of taxpayers' money.
And as a party we also support the call that the Department of Finance and the Department of Co-operative Governance and Traditional Affairs must be considerate in terms of the subsidies that are allocated to poor municipalities like those in my hometown of Melmoth, or Nkandla and all the other places that have smaller municipalities that are also in great distress. There must also be other ways that will look into whether these subsidies can be beefed up in any way wether they can get other funds to enable these municipalities to stand on their own, because they must be able to stand on their own at the end for them to be able to meet the people's needs.
As a party we support the committee's recommendations in that there must be a government grant that supports young children. Our children who are still receiving basic education should receive assistance through government funds, because they also have the right to life.
Hon member, if you do not have ways of detecting how we misuse government funds, we are striving for nothing at all. Between your department and the Department of Co-operative Governance and Traditional Affairs, strategies must be put in place to see to it that public funds are accessible to our people who are poor like me. Thank you very much. My party supports the Division of Revenue Bill. [Applause.]]
Ms L HLONGWA (KwaZulu-Natal): Chairperson, Deputy Minister, hon members of the House, it is an honour for us to participate in such an important debate on the Division of Revenue Bill for 2010-11. The KwaZulu-Natal finance portfolio committee met on Thursday, 11 March, to consider and negotiate a mandate in respect of the Bill. The committee agreed to support the Bill without any amendments. This Bill was subsequently approved by the House on 23 March 2010. Chairperson, the Bill met all the requirements of the law and, therefore, all political parties felt it necessary to support it. We should thank the Deputy Minister who has today shared with us the good intentions by government to deliver services to our people amidst the recession. This confirms the commitment of the ANC to creating a caring society.
At the outset, we wish to express our appreciation for the introduction of the new grants, namely the Expanded Public Works Programme, EPWP, grant for the social sector, for which we are already developing a plan for it to be better utilised. The Technical Secondary Schools Recapitalisation Grant has brought relief to us as a province, as most of our technical schools were really not meeting the needs of technical schools. The further education and training, FET, function shift will help to alleviate the challenges faced by our FET colleges and also help us to stabilise the sector, which was somehow becoming a thorny issue in the Department of Education. Other grants include the water services operating subsidy, the municipal systems improvement grant and others.
Chairperson, the allocation to KwaZulu-Natal seems fair; we believe that we are allocated the largest share of all provinces. However, there is a need to mention the impact of unfunded national mandates that affect all provinces, inter alia the shortfall in allocation for the implementation of the occupation-specific dispensation, OSD, allowances made to all departments. This shortfall has a knock-on effect for future financial years.
The implementation of the OSD affecting various sectors also continues to exert pressure on the provincial fiscus, as these OSD packages are agreed to at the national level but are not always accurately costed when providing additional funding to the provinces. The shortfall in the higher- than-anticipated wage increase for public servants for the year 2009-10 also has a knock-on effect for future financial years.
We would like to highlight a few unfunded mandates particular to the province of KwaZulu-Natal: Firstly, there is the shortfall in the budget of the devolution of the property rates fund grant to provinces. This shortfall amounts to R221 million for the 2009-10 financial year, with a further projected shortfall of R321,5 million for the year 2010-11, bringing the cumulative shortfall to R542,5 million for the year 2010-11. This will increase substantially in the outer Medium-Term Expenditure Framework, MTEF, years.
Secondly, there is the unresolved dispute between the national and provincial Department of Public Works on the ownership of certain properties in the province for which rates must be paid. At present, the municipalities in which these disputed properties exist have to bear the cost of unpaid rates. The eThekwini Municipality has taken a decision to cut off electricity and running water to these government institutions.
Thirdly, we need to address the acknowledgement by the SA Social Security Agency, Sassa, of the debt owed to the provincial department of social development for the use of provincial facilities and resources for the current and past financial years but no commitment from the national Department of Social Development to pay these debts owed.
Another problem is the inability of the Department of Transport to meet its financial commitments to national road initiatives in KwaZulu-Natal, such as Sani Pass, the John Ross Highway in Richards Bay and the R102 upgrade for the new King Shaka Airport in eThekwini.
The new policy on incapacity leave, ill-health and retirement will cost a fortune in the province. This year it will cost about R28,7 million, R29,9 million in 2011-12 and R31,1 million in 2012-13. Though the province has sourced money to fund it, this initiative is totally an unfunded mandate and that is the opinion of the committee on finance.
Provincial Treasury requested a substantial amount of additional funding of R86,138 million, R92,657 million and R88,591 million for the municipal support programme for the year 2010-11. This is considered to be an unfunded mandate as the implementation of the Local Government: Municipal Finance Management Act in provinces has not been implemented with additional funds being provided by the National Treasury, but rather it is expected that provinces find the necessary funding for this mammoth task from within their provincial baselines. Some funding was allocated towards this but not nearly enough to cover the actual cost of implementation.
Education has requested additional funding of R338,409 million in this year, R494,666 million, and R591,399 million for the 2010-11 Medium-Term Expenditure Framework, MTEF, for the expansion of provincial examinations administrations, for which no additional funding was provided by the National Treasury.
The incorporation of Umzimkhulu into KwaZulu-Natal has brought about spending pressure in this Vote, since most of the schools in that area were mud schools, and we are still struggling as a department to eradicate that backlog. The province has costed this backlog at R44,1 billion if we are to deal with the infrastructure backlogs in all our schools in the province of KwaZulu-Natal.
Chairperson, the last point is that the Department of Public Works has requested substantial additional funding for R45,461 million, R47, 270 million and R49,566 million for the implementation of Gijima. The department also requested R2,328 million, R916 000 and R949 000 to enhance the functionality of the register to, amongst others, comply with the Gijima minimum requirements of a fixed assets register.
The impeding expenditure arises from the implementation of a new national Act, for which no additional funding was provided to provinces. Government departments have attended a workshop on this development, but there is little indication that they will be able to roll out this mandate in this current financial year.
The disaster management grant has been allocated R133 million for the year 2010-11. This amount will not cover the cost of emergency housing interventions, as in 2009-10, because we have already exhausted the allocation of R150 million and money still has to be paid, and we therefore need more money for disaster housing in KwaZulu-Natal.
The province of KwaZulu-Natal takes this opportunity to applaud the Division of Revenue Bill. As we have indicated before, it seeks to better the lives of our people, and it is certainly in line with the manifesto of the ANC. We extend our appreciation to Treasury for all the reviews that have to be done this year. The KwaZulu-Natal province applauds the select committee on the report tabled to us on 23 March 2010. We think that this is a step in the right direction, especially the recommendations in as far as the introduction of early childhood development grants and assistance to municipalities are concerned. As I alluded to earlier on, most of our municipalities in KwaZulu-Natal are in a bad state and need more money to service the people and also to build the capacity as suggested by the SA Local Government Association, Salga.
Chairperson, in closing, we are also delighted by the intention of Treasury to review the provincial equitable share, PES, formula as we think the province has fallen prey to this kind of a formula since KwaZulu-Natal has more than 8 million people. The KwaZulu-Natal province here commits itself to ensuring that monies appropriated for this year and allocations in the outer years are put to good use. With these words, Chairperson, we would like to thank you. We support the Bill. [Applause.]
Chairperson of the NCOP and your Deputy, Deputy Minister of Finance, hon MECs and members of the House, I salute you.
Tshiven?a tshi ri ?wana o thomaho u mela ma?o a n?ha, ndi shenga. Muvhuso wo vha wo fanela u zwi ?ivha zwauri musi Cope yo swika, ho bebwa ?wana wa shenga ane ha nga vhuyi na ?uvha na ?ithihi a humela murahu. Zwe ra zwi thoma ro zwi thoma nahone ri ?o isa phan?a. (Translation of Tshiven?a paragraph follows.)
[In Tshiven?a they say a child who cuts teeth on the upper jaw first is considered abnormal. The government should have known that the formation of Cope was like the birth of a child who cuts teeth on the upper jaw first - something unusual and there is no turning back. What we have started we started, and we will continue.]
The aim of the Division of Revenue Bill is to provide for the equitable division of revenue raised nationally among the national, provincial and local government spheres of government for the 2010-11 financial year.
Hambi loko hi pfumelelana na Bili leyi kuna leswi landzelaka. Loko hi vulavula hi Mpimanyeto wa Timali xana mfumo wu endla yini hi mali leyi ngo boheleriwa enengeni wa mpfuvu yi famba? Loko mi kamba leswaku i timasipala tingani ti nga nghenisiwa eka section 139 nhlamulo swi vula mali leyi nga famba. Sweswi hi pfumelela Nkavelo wa Timali lowu nga mpimanyeto wun'wana. Hi ya nyika masipala leswaku yi ya yi famba yi lova.
Hikwalaho loko hina va Cope hi ri kona hi lava ku vona leswaku swilo swi famba kahle. Hi ndlela leyi a hi mi chavisi. (Translation of Xitsonga paragraphs follows.)
[Although we agree with this Bill there is this: When we talk about the Budget, what does the government do with the money that is being wasted? When you check how many municipalities are included in section 139, the answer is the amount of money that is wasted. Now we support the Budget Vote, which is another budget on its own. We will give it to the municipality so that it can be wasted.
Therefore we, as Cope, are here to ensure that things go on smoothly. In this way we are not threatening you.]
During the public hearing, Treasury indicated that there were some gaps as far as the formula was concerned and that they were going to review it.
Xi nga vi xitshembiso ntsena. Yi fanele yi langutisisiwa hi vona leswaku ndzandzeriso lowu loko Financial and Fiscal Commission, FFC yi wu tirhisa yi kuma leswaku hi wona mpimanyeto lowu nga ta averiwa mfumo wa le xikarhi, swifundzhankulu na mimfumo ya miganga leswaku mfumo wu kota ku tirha.
Tolo nimadyambu ndzi twe Mutshamaxitulu wa NCOP eka mbulavulo wa yena. Loko ndzi swi vula eka lembeximali leri nga hundza a mi pfumelanga. Mi lo hleka. Sweswi ndza tsaka hikuva a mi hleki. I vule swin'wana mayelana na migodi leyi nga tala laha ka Sekhukhune. (Translation of Xitsonga paragraphs follows.)
[It must not be a promise only. It must be reviewed to ensure that, as a follow up, when the Financial and Fiscal Commission, FFC, implements it, it must find that it is the correct Budget that will be allocated to the national, provincial and local spheres of government so that the government can function.
Yesterday evening, I heard the Chairperson of the NCOP's speech. When I said it in the previous financial year, you did not believe it. You laughed it off. I am happy now because you are not laughing. He said something concerning the many mines in Sekhukhune.] I can see that there is light inside the Chairperson of the NCOP. He told us that we should wake up and do something.
Ndzi vulavule hi swihlerisisi swa nsuku na swin'wana. A mi kalanga mi pfumela. I swi vurile leswaku ku fanele ku endleka xin'wana na xin'wana leswaku ku va na swihlerisisi. Sekhukhune yi na 31 wa migodi kambe a ku endleki nchumu. Mfumo a wu pfuneti nchumu.
A ndzi ri eBurgersfort Clinic. Loko u ya lahaya swilo swi hlangahlangene, swi hlangahlangene. (Translation of Xitsonga paragraphs follows.)
[I spoke about gold refineries and others. You did not believe me. He said that anything, something, must be done so that there could be refineries. Sekhukhune has 31 mines, but there is nothing happening. The government does not provide any assistance.
I was at Burgersfort Clinic. When you go there things are mixed up, really mixed up.]
I would like to tell the government - ruling party - to take a step. I said we support the Bill. Therefore, you should start working. Thank you.
Modulasetulo wa Lekgotla la Boset?haba la Diprofense, mohl Mninwa Mahlangu, Motlat?a Modulasetulo wa Lekgotla la Boset?haba la Diprofense, mohl Memela, Sefepisegolo sa Lekgotla la Boset?haba la Diprofense, mohl Ntwanambi, Motlat?a Tona ya Dit?helete, mohl Nene, Modulasetulo wa Komiti ya Nakwana ya t?a Dit?helete, mohl De Beer, Modulasetulo wa Komiti ya Nakwana ya t?a Ditekatekanyo, mohl Chaane, Ditonakgolo, baemedi ba diPrimiya t?a diprofense t?a naga ya Afrika Borwa, maloko a Lekgotla la Boset?haba la Diprofense, malokokanna a makgotlatheramolao a naga ya Afrika Borwa, t?homi?o e botse ya dit?helete t?a set?haba ke e nngwe ya dikokwana t?a mmu?o wa temokrasi. Re le profense ya Gauteng, re thabela go t?ea karolo mo poledi?anong ye ya Molaokakanywa wa Karoganyo ya Letseno la Mmu?o la 2010 le 2011.
Le ge re t?weledit?e go tshwenyega mola le mola, le dikakanyo mabapi le Molaokakanywa wo, Gauteng e ya o thekga. Re thabela dibilione t?a ka godingwana ga 58 t?e di abet?wego profense ya rena. (Translation of Sepedi speech follows.)
[Mr H PAPO (Gauteng): Hon Chairperson of the National Council of Provinces, hon Mninwa Mahlangu; Deputy Chairperson of the National Council of Provinces, hon Memela; the Chief Whip of the National Council of Provinces, hon Ntwanambi; Deputy Minister of Finance, hon Nene; the Chairperson of the Select Committee on Finance, hon De Beer; the Chairperson of the Select Committee on Appropriations, hon Chaane, Ministers, representatives of premiers of the different provinces in South Africa, members of the National Council of Provinces, and members of provincial legislatures in South Africa, efficient and effective use of public finance is one of the principles of democratic government. We are glad as members of the Gauteng Legislature that we are taking part in the debate on the Division of Revenue Bill 2010-2011.
Even though we indicated a few challenges and also gave our opinions on the Bill, we support this Bill as members of the Gauteng legislature. We appreciate the allocation of more than R58 billion for our province.]
We also welcome the review under way of the equitable share formula. For the review process to be expedited, it is important for the Select Committees on Appropriations and Finance, respectively, to work closely and co-ordinate with finance portfolio committees of provincial legislatures.
We say this because reports of the Select Committees on Finance and Appropriations and decisions of this House on matters of the division of revenue have a direct impact on the work which is supposed to happen in the provinces and in the municipalities. Therefore, it is important that there is closer co-ordination between the two select committees and the provincial portfolio committees. I thank you. [Applause]
Hon Chairperson of the National Council of Provinces, hon Deputy Chairperson of the National Council of Provinces, hon Deputy Minister of Finance, hon MECs and hon members, the Division of Revenue Act sets out three-year allocations for an equitable share and conditional grants for provinces and local government. The contraction of the South African economy in the first half of the 2009-10 fiscal year has meant a reduction in tax revenue.
On behalf of my province, I would like to thank our government for not cutting spending over the coming medium-term even though the tax revenue will only recover slowly from its slumps. We also welcome the provision of a substantial share of nationally collected revenue from provinces to strengthen social services programmes that have an impact on human development and quality of life.
We further welcome the aggregate increase over baseline of the next Medium- Term Expenditure Framework, MTEF, period to sustain the social progress made in recent years. This will strengthen the government's broader developmental objective and further mitigate the effect of the recession on the poor.
With regard to conditional grants, we take note and welcome the introduction of four conditional grants to provinces, in particular the Expanded Public Works Programme for the social sector, which will assist greatly to ensure that home community-based care volunteers are paid. The recapitalisation grant for technical secondary schools will be used to provide equipment and facilities for these schools and improve the levels of skills required by the economy.
However, the creation of the further education and training colleges grant to facilitate the transfer of further education and training colleges to the national government caused great challenges in the Northern Cape. As part of the preparatory stage to shift the function, the amount spent by each province in this grant was ring-fenced to create the baseline for a new national grant.
The amount ring-fenced out of the province's equitable share would be received back and thus there would be no direct impact. Out of the Northern Cape equitable share baseline, an amount of R287,3 million over the MTEF period was taken away and only R160,5 million was reallocated as a conditional grant. A shortfall of R126,7 million must be financed from other equitable shares.
We further note and welcome the introduction of the Dinaledi schools grant with its intention to provide support to Dinaledi schools to enhance the quality of mathematics and science achievement in Grade 12 in these schools. Although the Expanded Public Works Programme Incentive Grant, which was introduced in the Expanded Public Works Programme, EPWP, Phase 2, is not new, we appreciate its intention to reinforce and reward public bodies that actually implement labour-intensive methods and utilise the existing infrastructure location effectively to increase the labour content of infrastructure delivery.
We further welcome the increase in the incentive amount for rural municipalities from R50 to R60 per person for a day's work. However, the challenge with the grant is that provinces and municipalities still find it difficult to integrate it through their infrastructure programme because, although it is allocated to provinces and thus included in the Appropriation Act of the province, the eligibility to access the incentive grant depends on or is based on performance in the previous quarter, once the thresholds have been met. If thresholds are not met, which is the issue in most cases, it will imply that the provinces, in real terms, will underspend their appropriate budget in that particular year. It would, however, be good practice not to appropriate indicative incentive allocations, but instead to claim from the national department as the eligible provincial departments meet their targets.
With regard to the provincial equitable share formula, does the equitable share formula adequately address the expenditure needs of the province? The fiscal disparities arise from two sources: Firstly, provinces may differ in their fiscal capacity - that is their ability to raise a particular level of revenue - given the revenue assigned to them with administrative effect. Secondly, provinces may also differ in their expenditure needs. Even when they have the same fiscal capacity, they may differ in the costs they faced in the provision of a standardised basket of public services due to geographic and climatological conditions.
In this regard, geographically large provinces such as the Northern Cape province will have to spend more on transportation infrastructure and possibly on recurrent operations in order to achieve the same level of service as smaller provinces.
Furthermore, the variations in regional prospectus are caused by two separate phenomena: Firstly, less densely populated areas typically require higher levels of government service and thus create higher costs because it is more costly to serve a population that is more spread out. Secondly, the cost of providing a standard unit of government service may be higher in less densely populated and more remote areas.
Geographically the Northern Cape shares approximately 30% of South African's land area. The institutional component of the provincial equitable share formula, which constitutes 5% of total transfers, is given to provinces in equal amounts to each province, irrespective of the size. The underlying logic is that there are fixed costs associated with the establishment of the institution for the provincial government and delivery of public services.
Given the difference in expenditure needs, does this logic still hold? It must be further noted that during the 2005-06 Division of Revenue Act, the vastness of the area of the Northern Cape was recognised and it was discovered that the amount was top-sliced to address the road infrastructure. However, the cost of delivering the service is not yet recognised. We understand that the current equitable share formula is currently under review and I think as an oversight body we must take up an active role in this process.
In conclusion, the Northern Cape province supports this Bill.
Hon Chairperson, hon members, guests, comrades and compatriots ...
... ke a le dumedisa. Dumelang! [... I greet you all. Greetings!]
Sanibonani! [Greetings!]
Hon Chair, I must say it is nice to be back home away from home. I see you have also improved your Rules to allow points of clarity. I must say, in our legislature that becomes a point of disorder because you are disturbing a member when he is still delivering a good speech. That was Comrade Papo.
It is indeed a great privilege for me to make a contribution in this august House on the occasion of debating the Division of Revenue Bill of 2010, in the year which the ANC has declared as the year of working together to speed up service delivery to the people.
Let me take just a short left.
Sihlalo ohloniphekile, ngizwe uMnumzane Lees lapha, ekhuluma okunye okuyindida. Uma eqala uthe, uMphathiswa ulisike kahle lelikhekhe, lendlaleka kahle. Eseqhubeka nenkulumo yakhe ... [Hon Chairperson, I heard Mr Lees here saying something confusing. When he started he said the Minister sliced this cake and allocated it perfectly. When he continued with his speech ...]
... he then criticised that there is unacceptably more allocation to social welfare, which is there to address the downtrodden people left in the lurch by the apartheid regime. In short, the DA is saying: let us cut the social grants, poverty alleviation programmes and other means and measures that are there to assist and uplift the previously disadvantaged people who were oppressed by the previous regime. Now I understand the reason that the DA- led Cape Metropolitan Municipality decided to build toilet pans without walls and call them toilets.
Noma sekuthiwa kusobala kangakanani, ngeke sithi ogogo nomkhulu bethu abayohlala endle kungenazindonga kulezi zinto abazibiza ngokuthi yizindlu zangasese. [No matter how logical it may seem to be, we cannot expect our grandmothers and grandfathers to go and relieve themselves where there are no walls - in the so-called toilets.]
I tried to listen attentively - because listening is a skill - to what hon De Villiers was saying. The only thing I could hear in the time allocated by this august House which was progressive on his part is that tax money is now moving closer to the people with this Division of Revenue Bill. I think in that he is coming closer to the ANC, and I thank him for that. I must also advise him that we expect the Western Cape government and the Cape Metro to put this into practice; to deal with the squalor of the conditions in which our people find themselves in Khayelitsha, Gugulethu and other areas.
I must further say that I could really not make any sense when he spoke about federalism. One of my English teachers told me that if something is not making sense, it is nonsense. What I know is that South Africa is a unitary country. Constitutionally, what we believe in is co-operative governance, as stipulated in Chapter 3 of the Constitution, whereby the three spheres of government are expected to complement each other rather than to compete against each other.
I must then say that this 2010 Division of Revenue Bill, which is being tabled and is going to be adopted today, is indeed in conformity with Chapter 3 of the Constitution. As such, to this end, this Bill put into practical terms and financial logic the affirmation of section 40 of our Constitution when it says:
In the Republic, government is constituted as national, provincial and local spheres of government, which are distinctive, interdependent and interrelated.
Clearly, this 2010 Division of Revenue Bill is crafted and anchored within the context of achieving the five major priorities as set out in the 2009 Manifesto of the ANC, which are designed to impact positively on the lives of the people of this country, as we continue to wage the struggle for a more nonracial, nonsexist and a democratic society.
As a representative of Mpumalanga province, which is one of the rural provinces, you should not be surprised that we are particularly pleased about the fact that this division of revenue is also pro-rural in its nature. Hence, we support the passage of this Bill unreservedly.
This is in line with our manifesto goals, which place rural development as a key priority focus within the context of rebuilding the potential for rural sustainable livelihoods. This prioritisation of rural development is particularly expressed by the Bill through the fact that attention was drawn to the rising allocation to municipalities in both the local government equitable share transfers and the municipal infrastructure grant, MIG, which contribute to the capacity of municipalities to maintain water infrastructure.
Again, we note that measures have also been taken to increase the Expanded Public Works Programme Incentive Grant to smaller and rural municipalities over the 2010 Medium-Term Expenditure Framework, MTEF, period.
Finally, that funding has also been set aside on the Department of Water Affairs' Budget Vote to accelerate progress in bringing water and associated economic opportunities to rural areas. In Mpumalanga we are well on course, notwithstanding the challenges to address these water issues in our communities through our flagship programme called Water For All.
We are also pleased to note and accept the new Expanded Public Works Programmes Grant for the social sector that will subsidise nonprofit organisations, so that they can pay salaries to care workers currently working voluntarily on social and health-care related matters in our communities. Our people have expressed great appreciation, during our public hearings, to the government for introducing this grant. This intervention will go a long way, especially in poor and rural communities, where nonprofit organisations have relied on volunteers to carry out some of the socioeconomic difficulties faced by our communities without any remuneration.
We would like to support and align ourselves with the view which suggests that steps should be taken, that procedures for shifting of funds and rollovers from municipalities back to the national government should not disadvantage poor performing municipalities and priority should be given to supporting structures to assist such municipalities.
In this regard, we think the view that we should develop procedures that are specifically aimed at both strengthening capacity-building, support for poor performing municipalities and linking initiatives to withhold stock or reallocate grants to specific interventions to address capacity constraints should be applauded.
We strongly uphold this view, because continuous shifting of funds and rollovers back to national government and best performing municipalities could be tantamount to taking from the poor to subsidise the rich. We are particularly pleased as the ANC that this division of revenue is really going to assist our people as we speed up service delivery.
Yes, the President of the country has made a clarion call for our government at all levels to work differently; to work harder, faster and smarter within the context of understanding that this is a year of action. Again, Comrade President Jacob Zuma, when closing the 2010 ANC national executive council lekgotla, said, "In our work, therefore, we should prioritise the people and we must improve on citizen care."
This also moves in line with what the late president of the ANC, O R Tambo, said when he was delivering a speech when awarded an honorary degree in law on 19 October 1991, in Fort Hare:
South Africa needs to believe in our capacity to overcome our painful history; to begin again and to regard our failures, when they occur, not as finite moments, but as occasions for a new beginning.
I thank you. [Applause.]
Chairperson, it is an historic occasion to participate in this debate in the Limpopo province during Taking Parliament to the People. It is also historic because it is the first time that we debate the Division of Revenue Bill and report to the NCOP as required by the Money Bills Amendment Procedure and Related Matters Act of 2009.
The late Comrade Moses Kotana was an architect of the struggle in this country to set the pace for renewal and to better the lives of our people. The Freedom Charter as adopted in 1955, the strategy and tactics as reviewed by the Polokwane conference, the ANC manifesto for which the ANC- led government received overwhelming support on 22 April 2009 and the state of the nation address inform the division of revenue to address the specific objectives to improve the people's lives and give them dignity. In 1994, the people of this country got political freedom, but the struggle for economic freedom is still on. That work to get economic freedom, which the late Comrade Moses Kotane started, still continues.
Last Thursday, the new alliance of the opposition parties had the audacity to put forward a motion of no confidence in the Head of State of this country. One thing that they forget is that the Head of State of this country engaged with countries of the world to get programmes going, to uplift the people in Africa to get water and to get sanitation and went to Copenhagen to engage with countries of the world to set the pace and get sensible resolutions to save the world. That is the Head of State about whom they put forward a motion of no confidence.
During the state of the nation address, the Head of State gave the marching orders for South Africa for the next five years. Going back to 22 April, South Africa's people spoke, and last Thursday Parliament spoke, and the opposition dismally failed.
The ANC government steeled its resolve to create a better life for all and roll back the frontiers of poverty by focusing on the five manifesto priorities as demonstrated in the equitable division of revenue across all its spheres. Hon Lees came to the podium and addressed this House regarding the social welfare of our people - that we create a social welfare system at the expense of economic development. Sometimes it seems to me people cannot read, because we dealt with a review of the Budget; we dealt with the speech of the Minister of Finance, and we dealt with the Budget as a whole and with the division of revenue.
It is all set in a programme to get South Africa economically viable and to get jobs for our people. What is the reality in this country? We had Bantustans - this province where we are now had two - the former Venda and Lebowa. The then National Party did not spend what it was supposed to spend on water, sanitation and job creation in the Bantustans. Go and read the Tomlinson Report, which you can get at the library in Parliament. It will give you the facts. That is the history and that is why we must deal with the reality as it is now.
The statement is made that we lied for 15 years and made promises. Memories are very short. Since 1995, 1 568 new schools were built, 47 771 new classrooms were erected and 13,6 million people are receiving social grants and can say tonight that they have got bread on the table. You want to take it away. If you take it away, what do you put in its place? What answer are you going to give to the constituency if you take the statement that you made on this podium? How are you going to do that?
Five hundred new clinics were built, 2 298 were upgraded, 125 mobile clinics were established, 13 new hospitals were built and 2,9 million houses were built. That is a reality. Now it is said that we make promises and we cannot keep the promises. I think we must give the opposition a political education lecture.
The division of revenue as a developmental tool should be acute in correcting the past wrongs and past imbalances and create a democratic society. South Africa is a country in transition, from a past of the exclusion of the majority from decent services. We admit the challenges are huge. We also admit we must still do more. We are not running away from our responsibilities. Many of our provinces are a conglomeration of the erstwhile South African Development Trust and the former Bantustans. This led to tension amongst provinces in resource allocation and service delivery. The provincial equitable share allocations, the local government equitable share allocations per municipality and all other allocations are allocations to meet target priority programmes of government.
The ANC supports the objectives of the Division of Revenue Bill as stated in section 2 of the Bill specifically referring to accountability by ensuring that all allocations are reflected in the budget of receiving provinces and municipalities, and by ensuring that expenditure of additional allocations is reported on by the receiving provinces and municipalities and its implementation.
The total equitable share to provinces is R260,9 billion, of which R61,8 billion is in conditional grants, totalling R322,8 billion to assist provinces to see that the circumstances of their people are improved.
The ANC is committed to increasing its oversight and we will do it. We are starting this weekend during the constituency period to see to it that the allocated funds towards our spending priority are well spent. I am referring to expanding employment and safeguarding social security, improving quality education and skills development, improving health care, rural development, and creating a built environment to support economic growth and to combating crime and corruption.
We are serious when we say we want clean governance and co-operative governance standards that must not be compromised. The division of revenue in the hands of government, based on the will of the people and the people- centred and people-driven principle, should be outcomes-based.
My time was cut, but the ANC supports this Division of Revenue Bill. Thank you. [Time expired.]
Your time has not been cut, hon member. Your speaking time has expired.
Chairperson, let me, again, take this opportunity to thank all members for supporting this Division of Revenue Bill. A number of points which show that our democracy is indeed maturing, particularly when it comes to dealing with issues that relate to addressing the inequalities of the past, were raised.
The chair of the committee spoke about the need to stretch limited resources at this trying time. Never in our history has this point been so relevant. Never in our history has the economic question - that of satisfying unlimited wants with limited resources - been so glaringly important.
Members unanimously raised the issue of the importance of oversight once resources have been deployed. I indicated in my speech earlier that all the recommendations that the committee has made will be taken seriously. Some of them will actually be carried forward into the next financial year, as it was not possible to accommodate all of them during this financial year.
Members have already dealt with Mr Lees's dilemma of coming from a different planet to the one we are on. You see, I grew up in a rural area where people would travel in tractors and sit at the back. Whilst all of them were facing the front, a few delinquents would be facing backwards; that is what we experienced. When everybody else is facing in one direction, in order to build, one of us is facing backwards. So, if anyone of us was wondering what happened to the perpetrators of the deliberate exclusion of our people from economic participation, now we know where they are; they are still in our midst. [Applause.]
We survived the structural adjustments in the past. For an hon member to come before this House and say that this Budget is skewed towards social expenditure instead of funding economic infrastructure just shows that we really represent different constituencies.
If we are blind to the fact that our people are still poor out there, we are not going to see the need for us to balance the two. Whilst we invest in the productive capacity of this country in order to build the economy, we also need to look at how best we can address the plight of the people who otherwise cannot mitigate the poverty that they live in.
I agree that local government receives a smaller share, but anybody who understands how government works knows that local government is actually supposed to rely more on the revenue that it raises. A number of members raised the issue of how important it is that local government is assisted in boosting its capacity to be able to collect its own revenue, but also at the same time to make sure that government departments and all other people who owe rates to local government pay those on time. If this does not happen, I want to urge members - as public representatives - to make sure that those are taken up and necessary steps are taken in order to address it.
I agree with the MEC from North West with regard to the provincial equitable share. I have made an offer to the MEC to mediate between North West and Gauteng, because we have a similar complaint from Gauteng - that they inherited an influx of functions that came from North West and that the allocation that we transferred from the North West is not adequate. So, we have the two to balance.
With regard to the issue of the equitable share review, at both provincial and local government levels, the support for this review is appreciated and it came from all members across the board. I would also just like to indicate that the Financial and Fiscal Commission forms part of the review team that deals with this. The issue of inward immigration from rural areas into some of our cities is also fully appreciated, and the updating of data, in order for us to be able to deal with this, is under way. I also want to indicate that the other problem that we are faced with is that in order for us to stop our people from migrating from the rural areas into towns, we need to develop the rural areas in order for them to be able to absorb their own people as well as ensure that they are economically viable, so that people do not move to the towns in order to search for greener pastures. We still have this balance that we all need to work towards addressing.
With regard to the issue of unfunded mandates that came up from the member from KwaZulu-Natal, again we agree. But, I must indicate that National Treasury has an even bigger unfunded mandate, because in order for us to finance our borrowing to finance our expenditure, we need to service the debt. So, we need to balance the two, particularly at this time when we cannot raise adequate revenue, because we will all suffer as a result of that. Therefore, the issue of reprioritisation becomes even more critical than before.
We have identified savings in some of the provinces and departments, and we request that members assist us in making sure that departments, provinces and local governments begin to look at their priorities and cut noncore expenditure in order to spend where our priorities lie.
Every time the budgets are passed at local government level, one of the things that we should look at is what the priorities of local government are. Some of the things might be nice to have, but may not be necessary at this time for us to fund. We, therefore, would like to call upon members to assist us during their oversight to ensure that that happens.
I cannot overemphasise the point I touched on earlier, that of payments of accounts to municipalities on time. In fact, it is a provision in the Public Finance Management Act, PFMA, that that should be the case. If there are disputes on accounts, provinces and municipalities should agree on how to resolve them. Again, we offer to mediate if there are any problems.
It is impossible for me to deal with all the issues raised. I have taken copious notes; my officials are also here. Those that are within our powers to address, we will, and those that are not, we call on the collective wisdom of this august House to assist us in addressing. Thank you, Chairperson, and thank you for supporting the Division of Revenue Bill. [Applause.]
Debate concluded.
Question put: That the Bill be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Bill agreed to in accordance with section 65 of the Constitution.