Hon House Chair and hon members, the ANC welcomes the tabling of the Division of Revenue Amendment Bill [B17 - 2011] as required by section 12(4) of the Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009. This Bill is being tabled in the context of a challenging world economic outlook, which has continued to perform below par since 2008. On the other hand, South Africa is faced with the daunting task of addressing inequality, unemployment and underdevelopment. Therefore, effective distribution strategies have been adopted.
Despite these huge challenges, South Africa has made considerable advances in its quest for the attainment of a quality life for all its citizens, including the poor. Ours is a caring government, as can be seen from the tools of intervention that government employs, for example the quick response in providing funds for the repair of damaged infrastructure, from housing to roads, schools, clinics, farms and so forth, as well as the number of people who are receiving welfare grants. The Bill makes provision for additional funds for higher than budgeted for wage agreements across provinces. We must applaud the resources made available for staff at Further Education and Training, FET, colleges so that their posts become permanent posts, thus ensuring that FET college deliver on their mandate.
Also welcome is the breaking up of the infrastructure grant to provinces in order to establish the education infrastructure grant and health infrastructure grant, as well as the roads and transport and agriculture infrastructure grants. This includes the allocation of R700 million for school backlogs. This grant grows to R5,1 billion over the Medium-Term Expenditure Framework, MTEF, so that mud and dangerous schools become a thing of the past.
An amount of R73 billion is budgeted for the Expanded Public Works Programme, EPWP, over the MTEF to create "short and longer-term jobs". A lot of monitoring is required for this grant to ensure that there is value for money. The grant continues to be spent slowly, especially in the provinces, except for KwaZulu-Natal. The Portfolio Committee on Public Works and the Standing Committee on Appropriations carried out separate oversight visits to KwaZulu-Natal in order to learn best practice. In short, we found that in KwaZulu-Natal the EPWP item is a standing item on the agenda of the provincial cabinet and therefore departments are required to report on the progress of job creation in cabinet meetings. If the other eight provinces could adopt this approach, expenditure would improve tremendously.
The national Department of Public Works should also look at the design of the programme. Again, we have requested National Treasury and the national Department of Public Works to look at the design of various categories of municipalities, in order to improve productivity at that level.
Though government has introduced the Infrastructure Delivery Improvement Programme, where technical advisers are deployed to assist with building a skills base that enables infrastructure units to overcome blockages to protect implementation, the reality of the matter is that there is room for improvement in infrastructure delivery. Parliament must ...
... commend government for shifting the composition of spending to support higher levels of infrastructure maintenance and capital expenditure, as such investment will promote economic growth and job creation, and support an enabling environment for further investment by the private sector.
The ANC supports the Division of Revenue Bill, as introduced by the Minister. [Applause.]
Mr Chair, the Division of Revenue Amendment Bill provides for the equitable division of revenue between the three spheres of government. The Bill now before Parliament will allow the flow of R562 billion in revenue to national government, R291 billion to provinces and R34 billion to local government.
When we look at the division of revenue, we in the ACDP are of the opinion that more funds should have been flowing to the local government area because that is where service delivery takes place. Nevertheless, the ACDP supports the Division of Revenue Bill and we feel that there are some good signs, like the increased expenditure on infrastructure, which will assist in creating jobs. Unfortunately, not enough has been spent in that area. Nevertheless, the ACDP supports the Division of Revenue Bill. [Applause.]
House Chair, Cope equally supports the Division of Revenue Amendment Bill, known as Dora. However, we want to raise a few issues regarding its implementation.
Number one is that we continue to say that the Ministers who are managing the budget must look at it continuously. The increase in personnel expenditure is a problem. Basically, it's spiralling out of control.
Number two is the investment in education. There is no doubt that there is a commitment in regard to investment in education. So far, 20% of the budget of government has gone to education. That demonstrates a commitment. However, we are concerned that quality output remains an issue for the Minister to manage and handle.
Equally, we are concerned about infrastructure issues, particularly pertaining to schools, and we believe that the Minister of Basic Education can and must deal with this particular question. One of the many issues flowing from this is the backlog in infrastructure. When we visited the Eastern Cape, we found conditions that were appalling, particularly at Manzana High School. It is without electricity and ablution blocks, yet across the street there is water and electricity. The difficulty is transferring this to the school. As we speak today, these conditions have not changed. We think the Minister can at least crack the whip so that these conditions change, because the quality and morale of teachers are affected by the conditions in which they find themselves at the school.
The last thing we want to raise is corruption. We believe that the money that is flowing down to all spheres of government must reach the right level, and not simply mean that it is time for certain people to eat, as is happening in Free State and Limpopo. However, we support the Bill.
Chairperson and colleagues, the IFP will also support the Division of Revenue Amendment Bill, but we have a few concerns. One of them is the huge inefficiencies in government. We trust that Treasury can look at this, particularly when it comes to the Department of Public Works and its relationship with other government departments. Last week we heard, right here, a report from the Justice committee in which they suggested that they should rather be carrying out their capital works projects and maintenance themselves. I think this holds equally true for other departments because delays mean costs, and there are huge inefficiencies when it comes to Public Works and other departments.
Also, I think Treasury needs to look at cost-effectiveness, in regard to building a classroom, for example. At one stage in KwaZulu-Natal, with public-private partnerships, we could build a classroom for about R80 000 and it could be done in double-quick time. Yet if a similar classroom were to be built by Public Works, it would cost you R280 000 and take double or triple the amount of time. So, I think we really need to start looking at efficiency.
I also believe that the problem with the ability of municipalities to raise their own income are cause for concern. Provincial governments and municipalities should not continually rely on the Division of Revenue Act and wait for national government to dispense funds to them. The whole question of payment of outstanding rates and service charges in many of the municipalities, which run into billions of rand, needs to be seriously addressed.
On the question of conditional grants, we believe that there needs to be a continuous evaluation of these grants. At least every quarter there should be reports that are monitored, not just reports given for the sake of ticking a box to say, "Yes, we've given a report." I mean, these are funds! We welcome the fact that Treasury has now taken it upon itself to transfer to others conditional grants of provinces or municipalities that don't spend this money. This kind of initiative is very, very welcome.
We also applaud the fact that Treasury has taken measures to encourage and reward municipalities and provincial departments that accelerate the implementation of cost-effective service delivery to our citizens. This is also a positive step.
Lastly, there's a lot of talk about toll roads and their high costs. Although we know that fuel levies are distributed to metropolitan municipalities, maybe it is time to come up with some innovative thinking about how conditional grants can ease the burden on some of the motorists, because at the end of the day this infrastructure is needed. South Africa is one country and whether the road is in Gauteng or going to the Wild Coast of the Eastern Cape, these roads are needed and we've got to find ways of ensuring that the roads are paid for. We will support the Bill.
Hon Chairperson and hon members, the complexity of the budget expenditure process necessitates that at times we gather here to discuss and make important amendments to the original division of revenue.
Necessarily, a large portion of revenue should be allocated to provinces and municipalities, because the nearness to the people of this government supposedly serves to make it more attuned to their needs. The service delivery mandate of national government resides in these two spheres of government.
It makes one despondent that these spheres have thus far, since the inception of our democratic dispensation, proven to be government's weakest link. Irregular expenditure in some of the poorest provinces, such as the Eastern Cape, and across the country has increased exponentially from just a few million rand a couple of years ago to billions of rand by 2011. Corrupt government officials appropriate public funds for private use with impunity. This negatively affects both the pace and quality of the service delivery our people receive. As we have noted many times before, at the heart of the problem is a severe lack of skills, coupled with an institutional culture that celebrates ineptitude and turns a blind eye to cronyism and tender fraud.
With the economy still reeling from the effects of the recent global economic downturn, national government initiatives to strictly monitor and improve expenditure at provincial and local government level would be a welcome reprieve. Government is there to deliver value for the tax we are paying. We, the taxpayers of this country, are not getting value for our money.
As the UDM has indicated before, and still does, government is missing an opportunity to improve service delivery by providing jobs to qualified and skilled professionals and reducing reliance on expensive consultants. However, the UDM supports the Bill.
Die ADJUNKMINISTER VAN LANDBOU, BOSBOU EN VISSERYE: Geagte Voorsitter, rooi ligte en alarms oor die Suid-Afrikaanse begroting en die Regering se fiskale bestuur het die afgelope paar weke afgegaan. Dit was duidelik uit die agb Minister se toespraak, asook uit die reaksie van finansile kundiges in Suid-Afrika en die buiteland. Die kernprobleem blyk te wees die herhalende verhoging in lopende uitgawes, insluitend die groei in die salaris- en lonerekening van die openbare sektor. Dit lei tot al hoe meer beperkinge op geld wat beskikbaar is vir kapitaal- en infrastruktuurbesteding aan die anderkant.
Ons word vandag in hierdie Huis gevra om deur hierdie wetsontwerp verskeie aanpassings aan die Begroting goed te keur wat presies hierdie punt illustreer. Kom ek gee vir u een voorbeelde. Aanvanklik het die Minister begroot vir 'n 5,5% salarisverhoging in die Staatsdiens. N onderhandelinge en druk is ooreengekom op 'n salarisverhoging van 6,8%. Die 1,3% wat die verhoging meer is as wat begroot is, klink onskuldig, maar die feit is dat dit daartoe gelei het dat ons vandag net vir die provinsies 'n bedrag van R3,2 miljard ekstra moet goedkeur om hierdie salarisse te kan betaal.
'n Nog groter probleem is dat baie staatsdepartemente nie daarin slaag om die kapitaalbedrae wat wel vir hulle begroot is, te bestee nie, so ons bestee aan salarisse, maar ons bestee nie kapitaal aan die anderkant nie. Hierdie wetsontwerp maak ook daarvoor voorsiening dat van daardie bedrae nou oorgedra kan word.
Die VF Plus wil die Minister bedank vir die bedrae wat wel vir oorstromingshulp aan boere begroot is. Di hulp is uiters noodsaaklik, veral om infrastruktuur in die landbou te kan herstel. Natuurlik is dit nie genoeg nie, maar sonder di hulp was die situasie baie slegter.
Ons bekommernis is egter dat die provinsies wat dit moet bestee hierdie geld nie altyd vinnig en doeltreffend genoeg bestee nie. Kom ek gee vir u een voorbeelde. Die oorstromings aan die begin van die jaar by Upington in die Noord-Kaap het meeste van die vloedkeerwalle langs die rivier weggespoel. Dit het baie skade veroorsaak. Binne enkele maande kom die renseisoen weer en meer oorstromings kan plaasvind, maar die keerwalle is nog nie herstel nie. In my hoedanigheid as Adjunkminister sal ek my bes doen om hierdie probleme te probeer oplos, maar ek vra ook die Minister om te help ten einde te verseker dat hierdie finansile hulp so spoedig en effektief moontlik met die nodige kontroles aangewend word. (Translation of Afrikaans speech follows.)
[The DEPUTY MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES: Hon Chairperson, red lights have lit up and alarm bells have been going off during the past few weeks because of South Africa's budget and the Government's fiscal management. This was clear from the Minister's speech, as well as from the reaction by South African and foreign financial experts. The central problem seems to be the recurring escalation in running costs, including the increase in the salary and wages account of the public sector. On the other hand, this is leading to more and more restrictions on the funds available for capital and infrastructure expenditure.
Today in this House, by way of this Bill, we are being asked to approve various adjustments to the Budget, illustrating this very point. Let me give you one example. Initially the Minister budgeted for a 5,5% salary increase in the Public Service. After negotiations and pressure, a salary increase of 6,8% was agreed upon. The increase of 1,3% above what had been budgeted for may sound harmless, but this is what has really caused our having to pass, just for the provinces, an extra R3,2 billion in order to be able to pay these salaries.
An even bigger problem is that many state departments are unable to spend the capital amounts that have been budgeted for them, so that we are spending on salaries, but on the other hand we are not spending capital. This Bill also provides that some of those amounts can be transferred.
The FF wants to thank the Minister for the funds that have been budgeted for flood relief to farmers. This aid is absolutely essential in order to enable, in particular, the rehabilitation of infrastructure in agriculture. Of course it is not enough, but without this aid the situation would have been a lot worse.
We are concerned, however, that the provinces that are supposed to distribute this money are not always able to do so quickly and efficiently enough. Let me give you an example. The floods at the beginning of the year near Upington in the Northern Cape washed away most of the flood weirs along the river. This caused a lot of damage. In a few months the rainy season will be back and there may be more floods, but the weirs have not yet been repaired. In my capacity as Deputy Minister I will do my best to try to solve these problems, but I'm also asking the Minister's help in order to ensure that this financial aid is allocated as speedily and effectively as possible, with the necessary controls.]
Hon Chairperson, hon members of the executive, Members of Parliament and comrades, as you have heard, the Standing Committee on Appropriations unanimously supported the Division of Revenue Amendment Bill which is before us for debate. To simplify a complex and technical process, a budget is the alignment of figures with policy within a legislative framework. It is this framework that specifies the process and procedures of how the budget is to be passed and allocated. Various mechanisms are legislated regarding how it is to be allocated and ultimately accounted for.
According to Jeremy Heimans, the budget is the most important economic policy tool of government and provides a comprehensive statement of the nation's priorities. Heimans adds that, as the representative of the people, Parliament is the appropriate place to ensure that the budget best matches the nation's developmental priorities within available resources.
It is in the application of the various budgets that we as legislators are required to apply our minds to evaluating the optimal utilisation of state resources in achieving the national developmental agenda. The developmental state leads in the definition of a common national agenda.
The national agenda set by the developmental state is a product of a broad and extensive consultation with society. Our priorities are a product of inputs from the public and a scientific analysis of the obligations imposed by the challenges of the epoch on the state and its people.
The Constitution does not only provide for prohibitive obligations but imperative ones. The state must protect and fulfil the rights in the Bill of Rights - socioeconomic rights not excluded.
The developmental state's structures and systems facilitate the realisation of the set agenda. Measures must not only be rationally linked to the purpose they are intended to realise but there must also be a reasonable likelihood that such measures will eventually lead to the achievement of the said purpose.
Legal instruments regulating powers and relations of the spheres of government must enhance meaningful co-operation among the said structures. There should be neither duplication of duties nor parallel functions where there is a convergence of interests. The means must be proportionate to the ends of poverty eradication, the elimination of inequalities and the obliteration of unemployment.
We must never undermine the progress that this government has made in the past 17 years of democracy. Being the progressive government that we are, we must provide meaningful responses to the glaring challenges that we face. Now is an appropriate time to reflect on a number of areas that may inhibit the implementation of national policies across all spheres of government.
Chapter 3 of the Constitution, dealing with co-operative governance, states that the national, provincial and local spheres are distinctive, independent and interrelated. It requires the spheres to provide effective, transparent, accountable and coherent government for the Republic as a whole. It is clear from the intention of these provisions that the drafters of the Constitution envisaged the various spheres' working together to achieve the national agenda, while recognising the distinct and separate roles of each sphere.
The Division of Revenue Act allocates revenue raised nationally among the three spheres of government. The provincial and local spheres are allocated their share of national revenue by virtue of transfers and grants. The provinces' equitable share is crafted into a provincial budget in the form of an appropriation Bill and this is subjected to provincial legislative processes prior to being enacted.
There are a number of government co-ordinating structures established at the national level that facilitate the alignment of the national budget to achieve national priorities by all spheres of government. These structures have the ability to influence the allocation of funds broadly in meeting the national policy objectives. However, their influence is limited in respect of aligning specific allocations with specific objectives pertaining to the national policies within a provincial budget. This may result in the national and provincial departments with concurrent competencies not utilising the revenue raised nationally to effect policy implementation in an integrated and co-ordinated manner. The net result is that service delivery is compromised and the state does not extract from the fiscus the optimum utilisation of its resources.
Besides relying on the provisions of co-operative government, the national sphere of government has no power over provincial departments other than to persuade provincial government to ensure that national policy is implemented at a provincial level. [Interjections.]
You guys really are missing Mr Ellis. You have to professionalise, you know! Amateurs! [Interjections.]
Compounding the problems associated with implementing a seamless system of government between the national and provincial spheres, both horizontally and vertically, within and between the spheres, is Chapter 5 of the Public Finance Management Act.
This chapter sets out the functions and responsibilities of accounting officers pertaining to their roles within departments or constitutional institutions. These functions and responsibilities are contractually specific to the department or the constitutional institution that the accounting officer is employed by. In effect, this contract-specific employment of accounting officers creates a measure of autonomy and independence. This results in entrenching a silo- based approach to governance and leads to a fragmentation of service delivery. No central administrative authority is currently empowered to co- ordinate any integration across and between the spheres of government. Government relies on accounting officers embracing the letter and spirit of co-operative governance to implement government policies in a unified and co-ordinated manner, leaving much to chance.
Section 100 of the Constitution provides that when provinces cannot or do not fulfil an executive obligation in terms of the Constitution or legislation, the national executive may intervene by taking appropriate steps to ensure fulfilment of that obligation. This provision of the Constitution is utilised as a means of last resort by national government to maintain essential national standards or meet established minimum standards for the rendering of services. In no way can section 100 be seen or utilised as a mechanism in co-ordinating the day-to-day implementation of national policy at the provincial level.
In a unitary state, all other government bodies are subject to the authority exercised by the national government bodies. [Interjections.] Clearly, you don't respect your Constitution. You should read it. [Interjections.]
Order, hon members!
The distribution of authority to other government bodies or levels can never restrict the authority of the national government to exercise its authority. The distribution of authority in a unitary state is never so extensive or entrenched that any authority is exercised totally independently of the national government and that national government is irrevocably divested of such authority.
Notwithstanding the unparalleled historic achievements of the ANC government to date in transforming the lives of South Africans, we must consider whether now is not the appropriate time to review the present legislative and constitutional structures pertaining to governance and to assess whether, in their current form, they are conducive to achieving the developmental objectives of a unitary state. [Interjections.] On this point, Comrade Ben Turok will agree with me because he penned it. We should bear in mind that a developmental state needs to be constructed with strong core institutions, capable of driving development. [Applause.]
Chairperson, just to liven up the debate a little, let us recall what I have said previously from this podium. Seeing as we are throwing billions of rand around here, how long would you take to spend a billion rand if you were to spend R1 per second? It would take you 31 years! So, as we talk about the R288 billion which is going up to R291 billion, let us bear in mind that next year our national Budget is going to reach a trillion rand, which will take you 31 000 years to spend at R1 per second - 31 000 years! This is very interesting and it shows you the amount of money that we are throwing around and spending.
We on the Standing Committee on Finance have expressed our concerns about the spiralling public sector wage bill. A large part of the amount being discussed here today in the Division of Revenue Amendment Bill is the R3,24 billion that is being allocated, in addition to the provincial equitable share, to providing for higher remuneration increases than what was provided for in the main Budget, which Deputy Minister Mulder referred to earlier.
The public wage was up from 31% to 42% of government revenue. Clearly this is unsustainable, not only in the short term but in the medium and long term. We are loaning money to fund current account expenditure while not spending on capital expenditure. This is something on which we as the ACDP are in full agreement with the National Treasury when it said, "Over the medium term, salary increases for all role players need to be given careful attention."
We note that the proposed budget framework provides a 5% cost of living adjustment. We would urge the government to look at this and not to accede to higher-than-budgeted salary increases next year. We saw that they were previously budgeted at 5,5%, they but went up to 6,8%. We do not want to come again next year to readjust the Division of Revenue Amendment Bill to pay for additional, higher than forecast public sector wage increases. The ACDP will support this Bill.
Chairperson, the MF notes with great sadness those affected by the disastrous floods in KwaZulu-Natal and other provinces and welcomes the funds made available for restoring damaged infrastructure for this financial year.
The three new grants - the agriculture, housing and transport infrastructure grants - will play a pivotal role in addressing poor infrastructure and the eradication of poverty. The additional allocation to education means that we must get value for money. The MF hopes to see the education backlog grants eradicate inappropriate school structures.
It is vitally important that there be proper monitoring of expenditure and also of outputs and services that are funded by government. The MF is concerned about rollovers, as this will make service delivery regress. We further note that in order to achieve the ultimately desired result, it is important to build institutional and human resource capacity, which will translate into efficient and effective service delivery. The MF will support the Bill.
Hon Chairperson, hon Ministers and Deputy Ministers, hon members and guests, 17 years ago we showed the world that we could unite around a common cause: a democratic, nonracial, nonsexist South Africa. We showed ourselves and the world that we could compete politically and find a shared understanding on a matter of common concern to all of us, namely building a better South Africa for our children and grandchildren. Now, we must use this remarkable national capability energetically and urgently to address the problems of jobs, growth and poverty.
The Division of Revenue Act lays down how the total government revenue should be divided and allocated among the spheres of government and within government.
Local government is represented on the Budget Council, where the Minister of Finance discusses the proposed budget with provincial and local government. The impact of the Budget is felt at the local level, where poverty, unemployment and inequality are found. That is where sustainable development is the key.
We all know what development is. It is defined by the World Conservation Strategy as follows: "development - interpreted as economic growth with desirable improvements in social conditions can be sustained if it takes into account social and ecological as well as economic factors." The World Commission on Environment and Development also defines sustainable development, referring to it as development that "meets the needs of the present without compromising the ability of the future generations to meet their own needs". The South African definition of sustainable development, according to the National Environmental Management Act, includes and stresses, "to ensure that development serves present and future generations". The budget should address the present in order to address the future of the next generation with regard to health, education, unemployment, inequality and human settlement.
The focus of this debate will be on local government and development. Sections 152(c) and 153(a) of the Constitution state that local government must promote "social and economic development", and "structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community ..."
Here we are talking about local economic development, LED, which has the following objectives: the creation of employment opportunities for local residents and the encouragement of small, medium and micro enterprises; the alleviation of poverty and equal redistribution of resources and opportunities to all residents; alignment with the country's macroeconomic strategy, which is focused on global markets and international investments; the creation of local LED units in the municipalities to empower, advise and support all economic initiatives and communities as a whole; the promotion of partnerships with relevant stakeholders; and self-reliance and sustainable development. All of this tells us that we need capacity, as well as social and physical infrastructure, to achieve these objectives.
One of the aims of the Local Government: Municipal Systems Act is to provide for core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of the local economies. Larger municipalities have the capacity to borrow against their income to assist in achieving this aim of the Act.
However, smaller municipalities are unable to do this and therefore rely on grants. How, then, can the smaller municipalities plan for their future sustainability needs when their budgets and capacities struggle to meet their current needs? Let us think of those municipalities that can hardly raise their own revenue, especially those in the rural areas. How do we, as a unitary developmental state, ensure that the priorities of government are planned for and implemented in these municipalities?
Regarding public-private partnerships, PPPs, the financing, provision and maintenance of infrastructure are, in most cases, seen as the responsibility of government. The question is whether government, with its limited resources, can manage on its own to meet the whole nation's needs. The involvement of the public and private sectors will benefit both, as well as civil society and the economy.
PPPs are based on the concept of sharing risk. They pursue common objectives and different partners provide complementary resources, contributing to programme design. However, it provides the illusion that funds are readily available for infrastructure repair, improvement and construction at little or no cost. This is not the reality. Investors ask for returns through user fees or future taxes.
On the government's side, PPPs are used at all levels in co-ordination with key national legislation, such as the Public Finance Management Act, the PFMA, and the Local Government: Municipal Finance Management Act. At the same time, municipalities are as important for successful PPPs as the national government is for the success of service delivery.
Public entities must start doing roadshows. They should be known and accessible to the communities. These are developmental institutions and they have their role to play in changing the lives of the people for the better. Their impact should be felt and seen in the communities and they are well resourced to effect this.
Regarding annual performance plans, these must be linked to the municipal ward codes. This will enable links to the integrated development plans, IDPs, and assist the vertical planning from national, provincial and local governments. This will also assist us as public representatives when we do our oversight, because we will know where the projects are and what the community's involvement is, because the plans in the area will be known to them. That will facilitate our oversight and enable us to do our oversight work better because we will know where the gaps are in the communities.
Provinces and municipalities continue to play an important role in accelerating growth and job creation. Taking into account the challenges, it will be exceedingly important in the period ahead to take strong action in pursuit of efficiency and better-targeted expenditure. Turning an economy around and achieving the kind of transformation required to draw the millions of unemployed people into the economy is not an easy task. We must be honest with our people about that.
This Division of Revenue Amendment Bill addresses government priorities. We must have the courage to make difficult choices about investment priorities, industrial policy options, spending priorities, technology alternatives and trade strategies. Expenditure priorities of provinces and municipalities need to focus on more efficient and effective service delivery, protecting the poor and creating employment.
None of us can rest or sleep peacefully until every South African can say, "I can see a better future. I can find a job. I can learn a skill." Our people need hope. Our people want the ANC government to lead. We will lead. The ANC supports this Bill.
The bickering on this side must stop. The only thing you must do is to be gender-sensitive. Go and ask yourselves why you always believe in being, as leaders, surrounded by men. You have Helen Zille surrounded by men. [Applause.] [Interjections.] You have your current Leader of the Opposition ...
Chairperson, I rise on a point of order. [Interjections.]
... surrounded by seven Whips ...
Chairperson, a point of order!
... and only one female Whip.
What has that got to do with this debate?
Thanks very much. [Interjections.] [Applause.]
Thank you, hon member.
Chairperson, on a point of order: I rose while the member was still at the podium. [Interjections.]
Order, please!
The hon member must stay!
What is the point of order, hon member? [Interjections.]
I submit that what the hon member was saying was unparliamentary ... [Interjections.] ... and had no relevance to the debate at hand. [Interjections.]
I will consult the Hansard on that and come back with a ruling. [Interjections.] Thank you.
Thank you, House Chairperson, and thanks to all the members who participated in the debate. Thank you for your support of the Division of Revenue Amendment Bill. As we know, this Bill deals with the in-year adjustments as a consequential piece of legislation to the adjustments appropriation that we passed earlier.
The amendments we are talking about deal with provisions made for higher than budgeted for wage agreements that were concluded in 2011, which most of the members have raised as a concern. We fully share the concern that when the wage bill rises at the rate at which it is doing, crowding out capital expenditure, it is not sustainable.
Some funding, which amounts to R752,2 million and is for the repair of agriculture, housing, roads, education and health infrastructure damaged by floods, also goes to provinces. The concern that was raised by the hon Deputy Minister of Agriculture, Forestry and Fisheries, the hon Mulder, is also noted. However, we want to urge that when these natural disasters strike, we should expedite the process of submitting claims to the department, so that the department is able to respond timeously. It does take a bit of time for us to get a proper costing that will enable us to deal with these issues. It also worries us that if we are still talking about the disaster that happened in 2010 at this time of the year, it is indeed late. However, this is a matter that we are addressing with the relevant structures.
An amount of R1,2 billion for conditional grants that were withheld in 2010- 11 was rolled over where provinces could prove that such funds were committed to specific projects. This is one of our concerns, and members also alluded to it: If there is no proper planning and implementation of programmes, we shall have to withhold those funds. We will only release them once we are satisfied that they will be spent appropriately. There were no adjustments to the local government equitable share, but various revisions were made to local government conditional grants. One of them was to cater for a newly established municipality in the North West after the municipal elections, and also to build in-house capacity and stabilise institutional and governance structures.
The chairperson of the committee, the hon Sogoni, spoke about an Expanded Public Works Programme model in KwaZulu-Natal, which he applauded for having worked exceedingly well. We join the committee in applauding them and hope that other municipalities and provinces will learn from the shining example of the glorious province of KwaZulu-Natal! [Laughter.] Hon Sogoni also emphasised the importance of oversight on this matter, in that the legislature and cabinet of KwaZulu-Natal take this seriously and ensure that the programme succeeds.
On the issue of more funds flowing to local government, which Mr Swart alluded to, we agree. However, at the end of the day, we also know that more funds flow to local government in a number of ways in addition to the equitable share. After all, grants are also part of this "outfit".
The concern about implementation, which hon Ramatlakane always raises on this podium, is also shared. We trust that in working with legislatures, also on oversight, we will ensure that the implementation is done in a cost- effective and efficient manner and we will monitor this.
Hon Singh talked about inefficiencies, which is what our legislation seeks to address. I would imagine that oversight plays an important role in making sure that the inefficiencies are dealt with and that we are able to get value for the money that goes to these levels of government.
Mr Ntapane from the UDM also raised the issue of local government being at the coalface of service delivery. We fully agree with him and that is why we will ensure that once funds are deployed to this sphere of government, they will be monitored so that the desired outcome is achieved.
Mr Snell raised the issue of enhancing monitoring mechanisms, as well as the issue of the centrality of planning and monitoring. We share your sentiment, Comrade Snell, with regard to the governance model of ensuring that the silo approach is dealt with. You will recall that in the committee the Minister also enjoined you to please put together a paper that would serve before us, in order to see how that can be best enhanced. I would also like to refer you to the National Development Plan, which also talks to the issue of recognising the unitary state, even when it comes to governance, in regard to monitoring expenditure.
Hon Mashigo talked about rural municipalities that cannot raise their revenue. This is why we have put in place a differentiated approach to look at the allocation of resources to these municipalities, in order for them to be able to deliver the services required by our people on the ground.
Once again, I would like to take this opportunity to thank members who participated in the debate, as well as the Standing Committee on Appropriations, for having processed this legislation to this point. [Applause.]
Debate concluded.
Bill read a second time.