Speaker and hon members, Cabinet will consider amendments to the Labour Relations Act in the next few months and I am not in a position to speculate on what Cabinet may decide on the matter.
It is, however, pertinent to point out the following - that the Labour Relations Act provides a legal framework for promoting and facilitating collective bargaining at the workplace and at sectoral level. Negotiations are by nature flexible and often result in both parties making compromises from their original positions.
The policies of the current government are to promote job creation and to protect vulnerable workers. The current legislation is flexible enough to allow for competition in the labour market. As the hon member will be aware, the Minister of Higher Education and Training recently published a Green Paper on postschool further education and training. The conclusion of the Green Paper process will undoubtedly have major implications for our labour market, as it will accelerate all efforts to build a capable labour force.
With regard to economic growth, our approach is that indeed the private sector plays a major role, but there is also a role for government, which is mainly to create an enabling environment for growth. However, and perhaps more importantly, we should not lose sight of the fact that economic growth must go hand in hand with job creation and generate the necessary revenue that enables government to pursue progressive developmental policies.
The massive infrastructure investment that was announced by the President during the state of the nation address and further elaborated on by the Minister of Finance during the Budget Speech is one of the initiatives that will contribute to the creation of an environment that enables growth.
In addition to infrastructure investment, we are implementing measures to diversify exports, to reduce the cost of doing business in South Africa, to reduce constraints to growth in various sectors, as well as to promote more efficient production systems and entrepreneurship and innovation. We also undertake, on a continuous basis, regulatory reform to improve competitiveness.
While it is true that the number of unemployed people rose by 107 000 last year, the Quarterly Labour Force Survey released earlier this month informs us that 365 000 people were able to get new jobs. Our main focus is to ensure that economic growth accelerates and that we create more jobs, mainly in the private sector. We were able to reduce the number of people unemployed in the years before the recession began, and we aim to return to that level of performance and even exceed it in the years to come. In the meantime, we are also providing short-term employment and various forms of social support for those not able to find jobs.
In this regard, the Interministerial Committee on Antipoverty and Job Creation has identified six programmes for intensification. These are the Expanded Public Works Programme, the Community Works Programme, the development of small enterprises and co-operatives, the Jobs Fund, vocational training, and the War on Poverty campaign. Our approach, as ably articulated in the New Growth Path, is that while investments in various initiatives take root, the economy and South Africans need a stronger short- term employment boost.
The advantage with the Community Works Programme is that it has proven its ability to expand rapidly and flexibly while the strengthening of community structures provides a platform for other programmes. The interministerial committee is taking special interest in the work of supporting small enterprises and the development of co-operatives, given the immediate livelihood and job creation potential of these activities. Finally, the Expanded Public Works Programme is being strengthened, and funding has been allocated for new projects. I thank you for your attention. [Applause.]
Mr Speaker, I would like to thank the Deputy President for his response. Understandably, there is a great deal of concern in the public, particularly given the job loss figures that you cited, and I am happy that the government acknowledges the 107 000 jobs that were lost in the last year. There is a great deal of concern about the amendments to the Labour Relations Act and the Basic Conditions of Employment Act, which are set to be coming down the tracks into the legislature this year.
The major concern is around the issue of clamping down on short-term and temporary contracts, because we know that this will significantly restrict the ability of the economy to absorb first-time workers, young workers, unskilled workers, and, in particular, workers who don't have previous work experience. It is a well-known fact, Mr Speaker, that you cannot get a job without experience, and you cannot get experience without a job. Will the Deputy President confirm whether or not these provisions are contained in the draft amendments to this legislation and, if so, how does he plan within these envisioned constraints to deliver on his mandate as the head of the Short-term Job Creation Commission? Thank you. [Applause.]
Mr Speaker, I would like to thank the hon Mazibuko. Recently at Nedlac an accord was signed by all sectors - that is organised labour, organised employers, the community chamber, as well as government - and part of that agreement provides for recognition of temporary workers as apprentices. In other words, the employers approached government and complained that they could not contribute to the training of new entrants to the labour market because, in the past, the requirement was that once you employ someone on a temporary basis, within three months that person should be taken on board as a full-time employee and not as an apprentice. So, this matter was referred to Nedlac. It was debated, discussed and an accord was signed, so there is an agreement which now allows for young people to gain experience - requisite experience - by being taken on board.
It is a signed accord; it is binding. The Minister of Economic Development, Minister Patel, was the main driver of that, because in our focus to try and create jobs it is important for us to address all the bottlenecks. Anything that would impede the entry of young people to the labour market should be addressed. Therefore, the amendments cannot be carried through if the practical effect of those amendments to the Labour Relations Act, as well as Basic Conditions of Employment Act, thwarts this effort of ensuring that young people can be absorbed and so gain the requisite experience in the work milieu. Thank you. [Applause.]
Mr Speaker and hon Deputy President, during the 2011 state of the nation address, the President put the issue of the youth wage subsidy on the agenda and, within an hour after that, Cosatu started throwing their toys out of the cot. The President then backtracked so fast that, during the 2012 state of the nation address, his silence on this issue was deafening.
Recently, Mr Mantashe decided to kick Mr Vavi in the teeth on the same issue. So, the question is, is the Deputy President prepared to support Minister Gordhan, who is perceived to be the person spearheading the issue of the youth wage subsidy, particularly because it seems as if Mr Mantashe has decided to harness Mr Vavi?
Hon Kganare, as far as I know, this matter is a work in progress; it is on the agenda of Nedlac. It is being debated there. We work on the basis of consensus, and, once consensus is reached at Nedlac, then it would be implemented forthwith without any delays, but the matter is work in progress. It is being debated in Nedlac. Thank you.
Mr Speaker and Mr Deputy President, I am glad you referred, this afternoon, to the efforts regarding job creation and economic growth in the country. Your reference to the Expanded Public Works Programme and your reference to the Community Works Programme, all of these things are welcome. All of us in this House, I believe, would like to see these jobs being created.
However, there is something that is very worrisome, and I believe, Mr Deputy President, you have a responsibility today to assure this House of this issue that I am raising now. There is a trend in the townships that people get employed only if they are card-carrying members of the ANC. [Interjections.] I would like to know whether this is ANC policy, because I don't believe it is. However, the community and the country need to be reassured that as we grow this economy, as we create those jobs that we all want to create, all the people of this country will have an equal opportunity to be employed in those jobs. Thank you. [Applause.]
Hon Motau, I can indeed assure this House that there is no such policy in the ANC whatsoever and that where such examples manifest themselves, please do approach us. We will be able to address that problem and attend to it forthwith. It doesn't have to be through formal channels. You don't have to make an appointment or go through the hotline. Come straight to us, and we will be able to attend to it. Thank you. [Applause.]
Speaker, thank you, hon Deputy President. Deputy President, you did respond to a certain degree on the youth wage subsidy scheme where you indicated that it is, at present, before Nedlac. However, this is a hugely important initiative to create jobs, with National Treasury indicating that 178 000 news jobs can be created through this scheme at a cost of R28 000 per job over a period of three years. Now, the concern is that it has already been almost a year since this initiative was announced. Given that the Minister of Finance has indicated that reservations expressed by the labour constituency can be addressed in the design and implementation of this incentive and that he would like to see greater urgency in resolving this matter, can government in any way expedite this matter, given that one has to achieve consensus but that there seems to be a block in finalising the Nedlac process? Thank you, Speaker.
Hon Swart, yes, as government, we would like this matter to be resolved sooner than yesterday but, of course, it is the nature of democracy. To persuade other slowcoaches takes a bit of time, but we are convinced that this would benefit the country and the economy if it were to be resolved, as I said, sooner than yesterday. Thank you.
Government's intentions regarding change in tender system
3. Mr L S Ngonyama (Cope) asked the Deputy President:
Whether the government intends to change the tender system; if not, what is the position in this regard; if so, what are the relevant details? NO351E
Speaker, hon Ngonyama, the current tender system applied by government is in line with the prescripts of section 217 of the Constitution of the Republic of South Africa of 1996, which provides that contracting for goods or services must be done in accordance with a system that is fair, equitable, transparent, competitive and cost-effective.
The acquisition of goods and services is encompassed in the supply chain management processes which form an integral part of government's financial management system. This approach gives effect to the letter and spirit of both the Public Finance Management Act and the Municipal Finance Management Act, the objectives of which are to secure sound financial management and combat fraud and corruption.
The Minister of Finance, during the Budget Speech, announced the following initiatives that will be implemented by National Treasury to improve the procurement capability within government: firstly, eliminating fragmentation in the system and strengthening the national procurement structure and processes; secondly, appointing a chief procurement officer who will have overall responsibility for monitoring procurement across government; thirdly, reviewing the competencies and capabilities required to perform the procurement function, as well as strict vetting of all supply chain officials; fourthly, developing a national price reference system to detect deviations from acceptable prices; fifthly, strengthening the tax clearance system to ensure that those who have defrauded the state cannot do business with the state; sixthly, undertaking a joint review, with the Minister of Public Works, of the validity and cost-effectiveness of all government property leases; and, lastly, improving the ability of departments to set the specifications for tenders. The Minister of Finance will provide details regarding the implementation of these measures. I thank you. [Applause.]
Hon Speaker, hon Deputy President, thank you very much for your comprehensive response. Of major concern to us is the appointment of the said chief procurement officer. With the experience of political appointees as the background of various appointments within the government, are we going to see another political appointee in this position? That's the first question, hon Deputy President.
The second question is based on what Prof Lumumba, who is known as Kenya's corruption guru, said in the Business Day today. Prof Lumumba says that South Africa has, actually, declined from position 54 to position 64 out of 183 countries in the world with regard to corruption. He goes on to say that we have to look at a multidisciplinary approach in dealing with this issue. He espouses strategies around targeted political commitment, as well as economic, legal, administrative and moral aspects that have to be introduced by governments to deal with the issue of corruption.
Hon Deputy President, are we, as a country, on course with regard to, especially, political commitment by government in dealing with corruption? Are we on course with regard to matters of moral and economic aspects?
Xhamel' omhle ... [hon Xhamela] ... your time has expired.
Ndiyabulela, Xhamela. [Thank you, Xhamela.]
Thank you very much, hon Ngonyama. Well, indeed, I would say that, as government, we are on course, given the number of instruments that have been enacted in legislation to fight crime and corruption. The points that I have enumerated point at an endeavour to strengthen the efficacy of our systems to ensure that no room is left for corrupt activities.
But, of course, all of that is meaningless if it doesn't happen in practice. It has to be seen happening. And, as government, we are committed to doing that.
With regard to your point about political appointees, I really don't know what that means because, in many instances, there are processes of selection, interviews, and so on. However, at the end, it is the political authority that then assents to the recommendations of structures that would have performed the preliminary work of interviewing candidates, and so on. I think the process would be the same in this case. In this country we have appointed heads of Chapter 9 institutions, among others, and they function very well independently.
Unless you argue that political appointments are tantamount to a lack of experience or skill, and so on. That's a horse of a different colour altogether. But, I think in the normal course of doing appointments, yes, indeed, the political authority has to sign off on such appointments. However, there are processes that produce the shortlist or something like that. [Applause.]
Somlomo, Sekela Mongameli, ndiphakamela nje ukucebisa kule nto yeziniki-maxabiso. Into ebuhlungu ngayo le nto yeziniki-maxabiso kukuba kwayekwa inkqubo apho urhulumente wayeqesha abantu abasokolayo, umzekelo, xa kusenziwa iindlela.
Ziyenziwa ke ezi ndlela kuqeshwe abo bantu bangama-20 okanye bali-15. Emva koko uyaphela umsebenzi, baphelelwe yimali abo bantu, kodwa ukunakekelwa nokulondolozwa kwaloo ndlela kuyakulinda kude kube lolunye uHlahlo-lwabiwo- mali kunyaka olandelayo. Ukuncedisa aba bantu basokolayo emakhaya, ingaba ayinakuba bubulumko na into yokuba kubuyelwe kulaa nkqubo yamandulo apho iSebe lezeMisebenzi yoLuntu lalinezixhobo zalo zokusebenza, kwiingingqi ngeengigqi kukho aba bantu kwakusithiwa ngoonontente, njalo njalo, khon' ukuze abantu bafumane umsebenzi?
Mandulo, ngethuba ubungunobhala jikelele wombutho wabasebenzi i-NUM, xa amadoda edendiwe phaya emigodini, besiwaxelela phaya emakhaya ukuba aza kuba iinkomo ngoko ke mawaye kuphangela kwiSebe lezeMisebenzi yoLuntu. Mhlawumbi ngelo xesha umntu uneminyaka engama-40 kodwa ebephangela enaloo minyaka ingama-40 ubudala ade abe kubudala beminyaka engama-65, eqinisekile ukuba inyanga nenyanga uza kufumana imali. Kuloo mali babesondla bekwafundisa abantwana babo.
Ingaba akuqondi na ukuba le nto ibandakanya iziniki-maxabiso, njengokuba uyibona ukuba inokubola okuninzi, iphinda isibethe ngokuphindwe kabini nakweli cala labantu kuba bathi sabayekisa into ababephila ngayo. Abantu bayakhalaza ngokuthi kunikwa mntu uthile iziniki-maxabiso aze loo mntu aqeshe inkosikazi yakhe nabantwana bakhe bodwa bona behleli emakhaya. Awuboni kanjalo, Mhlekazi? [Kwahlekwa.]
USEKELA-MONGAMELI WERIPHABLIKI: Enkosi, mkhuluwa wam, ndivumelana nawe ukuba, enyanisweni, iSebe lezeMisebenzi yoLuntu kunyanzelekile ukuba libuyele kulaa ndlela indala yokuba libe nabo abantu ekuthiwa ngabasebenzi jikelele bokwenza imisebenzi eyahlukeneyo. Umsebenzi jikelele wenza yonke imisebenzi. Umzekelo, xa kophuke ifestile esikolweni ize ixelwe ngentsimbi yethoba, ngentsimbi yeshumi umsebenzi jikelele woba sele ephaya efakela ifestile entsha. Ndicinga ukuba, ukuba singasebenza ngolo hlobo, kungabakho imisebenzi ezilalini kwaye nonakekelo nolondolozo lwezakhiwo nezinye iziseko zophuhliso lungenzeka ngexesha. Inkqubo enjalo ingasisebenzela nangokubhekisele kubantu abafana nabasebenzi bezamanzi nogutyulo. Umzekelo, ukho endimaziyo obebaluleke kakhulu phaya eBhayi ekuthiwa nguGalelekile Vito. Xa kukho umbhombho ovingcekileyo utaka ngoko nangoko aye kuwulungisa. Ndivumelana nawe, mkhuluwa wam. Enkosi. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)
[Mr B H HOLOMISA: Hon Speaker, Deputy President, I would like to comment on the question of tenders. The sad part about the issue of tenders is that government has phased out the process of utilising the underprivileged people, for example, when building the roads.
They do construct the roads with the manpower of 20 or even 15 people. And after that there are no more jobs, no salaries for those people, and the maintenance of those roads will have to wait for the budget allocation of the next financial year. To assist the underprivileged, wouldn't it be wise to revert to the old Public Works system which had its own resources, with its own road maintenance workers in each and every region, etc, to help people get employment?
Back then, when you were the secretary-general of NUM, we used to tell men who were retrenched from the mines to go and join Public Works so that they didn't end up stealing our cattle. Sometimes you will find that a person is 40 years old, but he will continue working until he is 65 years old, and by that time he is sure that he will get money each and every month. They looked after their families and managed to enrol their children in school with that money.
Don't you think that all this involves tenders, as you can see that it is rotten with corruption, and that this problem is twofold in the sense that people are also blaming us for depriving them of their means of survival? People are complaining that tenders are awarded to a certain person who employs only his family members, such as this wife and children, leaving the rest of the community members unemployed. Don't you think so, sir? [Laughter.]
Thank you, my big brother. I agree with you that the Department of Public Works must revert to the old ways of employing general workers who are going to focus more on odd jobs. A general worker is a jack of all trades. For example, if the school reports a broken window by nine o'clock in the morning, the general worker will be there by 10 o'clock to fix it. I think if we can work in that way, there will be job creation in the rural areas, and the maintenance of buildings and other infrastructure will be done in time.
A system of that nature can work to our advantage and also when it comes to people who are working with water and sanitation. For example, I know a Mr Galelekile Vito, who is very important in Port Elizabeth. When there is a pipe that is blocked, he doesn't hesitate to go there and fix it. I agree with you, my big brother. Thank you. [Applause.]]
Mr Speaker, in 2010 the DA submitted a private member's Bill in this Parliament to regulate the business interests of state employees, public representatives and other government office bearers in order to prevent them from doing business with the state. This proposal was scuppered because we were told by the government that similar legislation was coming down the pipeline and that we were pre-empting that legislation. But, to date, no such legislation has been tabled by this government.
Given the levels of corruption and nepotism that plague the tender process in government's spheres throughout the country, what I want to ask the Deputy President is: Will his Cabinet approve a Bill to regulate the business interests of state employees, like the one which the DA-run government of the Western Cape has passed? [Interjections.] If so, when will this Bill be introduced in this Parliament? If not, does this mean that the Cabinet endorses the existence of business relationships between state employees and the government for which they work? [Applause.]
Hon Speaker, hon Mazibuko, I'm not sure at what stage the process of a similar Bill that would regulate the business interests of state employees is. But, in principle, I think we are agreed that government employees, public office bearers, and so on, should not do business in a conflicting manner. So, if there is a need for a Bill, I will go back to my colleagues in Cabinet and enquire as to what stage such a Bill is at and what we are doing about this specific matter.
Indeed, we can't afford to be forever dealing with manifestations and problems emanating from conflicts of interest. As much as possible, we should also - in the same way that we prevent new HIV infections - prevent the temptation to stick our fingers in the till. Therefore, in principle, I undertake to go back to my colleagues to enquire as to what stage that process is at so that we can activate it. Thank you. [Applause.]
Hon Speaker, let me first and foremost thank the Deputy President for the detailed and comprehensive response. The Deputy President's response clearly illustrates that procurement of goods and services by the state is far more than just tendering. It is a tool designed to achieve developmental objectives for the delivery of basic services at the local level. It is a tool to reduce poverty and inequalities in society and promote social cohesion. It is also a tool to promote social activities and localisation of industries to promote manufacturing at the local level.
As the ANC, we further appreciate the measures already taken by government, particularly at the local level where the prevention of the convergence of political office and the bidding process has already taken place in order to avoid conflict in terms of tender awarding. We also welcome and support the speedy implementation of the measures announced in the Budget Speech, particularly the appointment of a chief procurement officer and the establishment of a national pricing reference system. We really feel that it is important to speedily put measures in place to achieve these objectives. Thank you.
Responsibility of three arms of state in transformation of society
4. Mr L N Diale (ANC) asked the Deputy President:
What is the key responsibility of the executive, legislative and judicial arms of state in leading transformation to achieve the vision of a united, democratic, nonracial, nonsexist and just society?