Speaker, on 17 October this year I announced a package of measures intended to address the widespread and unprocedural strikes in the mining sector, the violence associated with it as well as the economic slowdown that resulted from slower global growth.
The announcement followed a high-level dialogue on the economy with the National Economic Development and Labour Council, Nedlac, constituents, government, business, labour and the community sector.
The essential message that came out was the need to pool together our collective strength and resources and unite in action for the common good of our country.
Significantly, progress has been made since the dialogue. We have established a presidential taskforce on mining communities led by Minister Collins Chabane, which will look at human settlements, local economic development, transport as well as migrant labour issues in responding to the grievances and underlying causes of the strikes in mining towns.
We have seen a unified approach to responding to the labour issues since the dialogue. Union leaders have addressed meetings of workers to call on members to adhere to collective agreements and defend the collective bargaining system, whilst recognising the underlying grievances. A number of mining companies reversed decisions to dismiss workers and allowed for an orderly return to work, sometimes accompanied by negotiated settlements to grievances. At the height of the strikes in the mining sector, the Chamber of Mines estimated that 120 000 workers were on strike. Following these various interventions, this has been reduced to less than 30 000 workers who are still on strike, and negotiations are continuing. I must emphasise that the right of workers to strike and protest is constitutionally guaranteed. Our call is for this to be done within the framework of the law.
In the spirit of making a statement against inequality as proposed by the dialogue, Cabinet has committed to a salary freeze for the next 12 months for Ministers and Deputy Ministers. [Applause.] The Forum of SA Directors- General has in turn endorsed the call for a salary freeze for the directors- general. We now await the processes of consultation within the private sector regarding their executive salaries.
To promote the co-operation of all spheres of government, we have briefed provincial premiers, as well as district and local mayors of key mining towns. Since a number of accords were signed last year, we have also convened discussions with social partners about the implementation of commitments to the green economy, localisation and skills development.
One of the key problems identified in the Marikana area is the high level of debt by workers. The National Credit Regulator, together with the SAPS, has thus begun a crackdown on illegal and exploitative lending in the mining belt.
To promote improved living conditions and job creation, a number of infrastructure as well as community works programmes have been mainstreamed into the budget, as per announcements in the Medium-Term Budget Statement by the Minister of Finance.
We are encouraged by the co-operation we continue to receive from all the partners. We will continue to draw on the expertise and support of all partners in building our country. I thank you.
Speaker, I thank the hon President for an elaborate response. I am humbled by the effort. I am aware of the fact that as part of the action plan that you have alluded to, amongst other things, business has committed to using money provided for social plans as well as other social interventions to support local economic development. How will it be ensured that such interventions are economically viable and sustainable, instead of what I personally term bubblegum interventions? That is, providing lip service to deep-rooted economic development challenges faced by most of these communities. I thank you.
Speaker, as I have indicated, the social partners met to discuss not just the strikes but also the economic situation around the mine area, and the conditions, not just of the miners but of the communities around the mines. That is why we have agreed that there must be specific programmes that will deal with that kind of situation, including the human settlement question, which will go hand in hand with the activities of the economic development and really inject economic energy into those areas.
There are a lot of decisions we took in that regard. So, it is not going to be a bubblegum type of intervention. It is going to be a real intervention. Thank you. [Applause.]
Hon President, during the social partners' meeting of 17 October that you referred to, you said, among other things, that you addressed the issue of violence that is associated with strikes in the mining sector.
On a few occasions you have called on strikers not to get involved in violence and you have repeated the constitutional right of workers to strike, but your call seems to be falling on deaf ears. Whenever strikes take place, as is happening right now in the Western Cape, there is violence that includes the destruction of property and loss of lives. Unfortunately, not much is heard from the President. The President seems to be quiet. There have again been calls ... [Interjections.] ... for the Western Cape ...
Order, hon members, order!
Rev K R J MESHOE ... to be made ungovernable, and we have not heard the President respond to that.
My question to the President is, in the light of what is happening, particularly now in the Western Cape, what is the President saying to those who are perpetually and continually using violence that leads to the loss of property when they strike, and what is the President saying about the call to make the Western Cape ungovernable? Thank you. [Applause.]
Hon Speaker, if the hon member is not selective in getting to know what the President says he will know that I have been making this call for a long time. I started making it long before the mine strikes, when the workers were marching and protesting. I have made this call very strongly and I have continued to do it. I also made it at the mines. It was not the first time. [Interjections.] I have been making this call all the time ... [Interjections.] ... because it is not acceptable that when people protest or strike, they undermine the rights of other people who are exercising their own rights. This is what I have been saying, and I will continue saying so.
I have not said anything about people who talk about the ungovernability of the Western Cape because I don't exactly know what it means. [Interjections.] Absolutely ... [Interjections.] ... unless you explain it to me ...
Order, hon members, order!
... unless you unpack it for me with regard to what it means ... [Interjections.] ... because it might mean protests because of the very harsh conditions here, which is also happening throughout the country. [Interjections.] I don't know what it means. [Interjections.] If you unpack it for me, I will be able to give you a very intelligent comment. [Applause.]
On a point of order, sir. [Interjections.]
What is the point of order?
The President has just requested that we unpack this matter for him. Can we do it now? [Interjections.]
Sir, please take your seat. Hon Lekota, you have the floor. [Laughter.] [Interjections.]
Speaker and hon President, our real potential as a country and the capacity of society to deal with the challenges of the moment lie on the basis of what we can do, and we need leadership. What we need now is leadership ... [Interjections.] ... and leadership for society must come from government. [Interjections.] Right now the country ...
Order, hon members, order!
... is in turmoil and the levels of unrest and civil disobedience are increasing every day. [Interjections.] The lives of workers here in the Boland and in the vineyards are being lost every day. [Interjections.] Your Ministers are going there with conflicting messages. Some are encouraging the workers ... [Interjections.] ... to do things that are lawless and so on, and in the process we are losing more jobs than building them. Our situation is going to become completely untenable. [Interjections.]
Extraordinary conditions and circumstances require extraordinary efforts on the part of leadership, and I want to ask the following question. Mr President, why are you so quiet? [Interjections.] Why do we not see decisive leadership on your part in marshalling your forces so that we can see solutions begin to happen? [Time expired.] [Interjections.] [Applause.]
Hon member, your time has expired.
Hon Speaker, firstly I have not heard my Ministers conflicting on these issues. [Interjections.] I have not heard them. They have been going to address the issues as they pertain to their very specific portfolios. [Interjections.] They have been there ever since we had the strikes. [Interjections.]
One of the interesting things is the definition of leadership of this country. I don't know what we have in this Parliament and whether these are not leaders of their own parties. [Applause.] The pertinent question is what do they do in this House to give leadership to this country as representatives of the people and the public? [Applause.]
Why, then, should the question be selective? Is this not the leadership? Are you not a leader, hon member? [Laughter.] [Applause.] Now, I don't want to politic, because I can say that other leaders stand here to make the biggest noise and say nothing. Absolutely nothing! That's not leadership. [Interjections.] That's not leadership. If I had time I would have quoted Shakespeare with regard to what he says about such people. [Applause.] [Laughter.]
This claim that there is no leadership in this country is totally out of order. [Interjections.] There is a leadership in this country ... [Interjections.] ... which you can divide into many categories. In political parties ... unless you say there's no leadership in the political parties. [Interjections.] There's a leadership in government. [Interjections.] There's a leadership in society. That is why, when Marikana happened ... [Interjections] ... the leadership immediately moved in - the church, traditional leaders ... [Interjections.] ... the government. The question would be, what was the effort of the other political parties to give leadership? [Interjections.]
Order, hon members, order!
I think it is very important that, except for making statements ... [Interjections.]
There's a point of order.
On a point of order, Speaker. Your Excellency and hon members: I would like to inform his Excellency that opposition parties went to Marikana immediately. We didn't meander ... [Laughter.] We went straight there, sir. [Applause.] [Interjections.]
Order, hon members, order!
Well, we all live in this country. They all gathered together to criticise and not to seek a solution. That was the problem. [Applause.] That's the leadership I am talking about. Here was a country in trouble, and instead of coming together to decide what we could do, they gathered to criticise. That is unfortunately the leadership we have. [Applause.] Thank you, hon Speaker.
Mr Speaker, Mr President, I think most South Africans saw the high-level dialogue as another talk shop full of vague commitments. We heard a rehash of the same old stories about the infrastructure programme, the Expanded Public Works Programme, the Jobs Fund as well as a recap of Minister Patel's ideas on youth unemployment that make a point of leaving out the youth wage subsidy. However, the only new message that came through clearly was your call to chief executive officers, CEOs, to impose a freeze on salaries to tackle inequality.
Mr President, today you have had much to say on leadership, but do you not feel that if you are asking executives in South Africa to hold back, you should demonstrate your own commitment to spending restraint by putting a freeze on the R250 million to be spent on your compound at Nkandla? [Interjections.] [Applause.]
Order! Order!
Hon Speaker, well, firstly the social partners met; they are very serious and they discussed a lot of issues. I don't know what the member is trying to say when he says we rehashed this, because they rehash everything, every day! [Laughter.] Absolutely! [Interjections.]
Now, the last point that he is making about the house at Nkandla is a question here. That question is coming. [Interjections.] That question is coming. I think the hon member is in too much of a hurry. [Interjections.] We are coming to the question, and I am not going to answer it now. The time is coming. It's been asked by your leader, so its going to come and you are going to get the answer. [Applause.]
Hon Speaker, I rise on a point of order: Please would you rule on the rowdiness of the visitors in the gallery? [Interjections.]
Order, hon members! Order! Order, order, order, order! The visitors in the gallery ... [Interjections.] order, hon members! We welcome your presence here, but I would like to appeal to you to neither approve nor disapprove of what is said on the floor. You are most welcome here in the House, but in order for me to maintain order, I would appreciate your kind co-operation. I would not like for you to feel unwelcome. You are welcome, but please, no more noise from the gallery. [Laughter.]
Land ownership issues and foreign land owners 20. Mr V B Ndlovu (IFP) asked the President of the Republic:
(1) Whether he intends to instruct his Minister of Rural Development and Land Reform to hold discussions with (a) stakeholders on land ownership issues and (b) foreign owners of land; if not, why not, in each case; if so, in each case, (i) when and (ii) what issues will be covered;
(2) whether he will make a statement on the matter? NO2007E
Hon Speaker, since the approval of the Green Paper on Land Reform by Cabinet in August 2011, the department has conducted numerous consultative workshops with a range of stakeholders. The stakeholders consulted include organised agriculture, emerging and commercial farmers, academics, nongovernmental organisations, agribusiness, donors, and other interested parties. The discussions have focused on all the policy proposals contained in the Green Paper.
From these larger consultative processes, a national reference group was established, consisting of representatives from the earlier-mentioned groups. Six work streams aligned to thematic areas of the Green Paper on Land Reform have also been established and are operational. The streams include representatives from the SA Local Government Association, the SA Council of Property Valuers and other government departments. The stakeholders are discussing the proposals in the Green Paper to find the best ways of reversing the legacy of the 1913 Natives, Land Act.
The primary objective is to change the systems, patterns, ownership and control of land and landed assets. Our ultimate objective is to deracialise the rural economy for shared and sustained growth, and create democratic and equitable land allocation and use across gender, race and class. We also want to promote a strict production discipline in order to ensure national food security. That is why we promote the return to the land, so that communities, especially in rural areas, are able to plough and sustain themselves.
Sifuna abantu abasezindaweni zasemakhaya, babuyele emasimini balime ukuze baziphilise. [Ihlombe.] Yingakho ukubuyela komhlaba ebantwini bakuleli lakithi kubaluleke kangaka. (Translation of isiZulu paragraph follows.)
[We want our rural communities to return to the life of cultivating the land and sustaining themselves. [Applause.] That is why land redistribution is so important to us.]
The Green Paper also sets out the objective of graduating black farmers into successful commercial farmers through the Recapitalisation and Development programme. It also calls for the creation of institutions such as the Land Management Commission and the Office of the Valuer-General, which would become the arbiters of the principles of just and equitable land reform.
As you are aware, the National Development Plan also makes proposals for land reform which include the concept of district committees. It is proposed that these committees would identify and select people to be resettled. They would also identify people who demonstrate suitability, passion and commitment to rural development despite the limited space and resources.
The centenary of the Land Act next year will provide an opportunity to galvanise the whole country towards meaningful land reform and redistribution in a manner that promotes redress and reconciliation. The consultations amongst stakeholders and the affected people will continue until the policy processes are finalised. Land remains a central issue in the restoration of the rights and dignity of those who were dispossessed. I thank you, hon Speaker. [Applause.]
Somlomo, mhlonishwa Mongameli siyabonga ngempendulo osusinike yona. Okokuqala nje, mhlonishwa Mongameli, leli lizwe lafelwa wobabamkhulu noyihlomkhulu ngoba bevikela umhlabathi, lapho-ke ngisho umhlaba. Uma uMongameli ekhuluma ngokuthi kune-Green Paper, thina bantu basemakhaya asazi ukuthi usho ukuthini.
Okwesibili, uma uMongameli ethi kukhona izithangami okuhlalwa kuzo, thina lapho esiqhamuka khona kukhona abantu abazembulelwa izindawo zabo zokuhlala bakha kodwa base bebhidlizelwa imizi yabo, sebelala ezigangeni. Abanye abantu bayimihambima ngoba ingekho indawo abangahlala kuyona.
UMongameli akakuboni kufanele ukuthi, eminyakeni eminingi kangaka kusukela ngonyaka we-1994 kuze kube yimanje, ukuthi kuxoxiswane ngendaba yomhlabathi ngoba kwachitheka igazi ngomhlabathi.
UMONGAMELI WERIPHABHULIKHI YASENINGIZIMU AFRIKA: Somlomo, nelungu elihloniphekile leNdlu yesiShayamthetho sikaZwelonke, uma kuthiwa iPhepha eliluHlaza ngesiZulu, phecelezi i-Green Paper ngesilungu, kusho ukuthi yiphepha lokuqala elindlalela indaba ukuze ixoxwe. Kusho lokho. Uma kuthiwa nje i-Green Paper noma iPhepha eliluHlaza, wazi ukuthi yiphepha lokuqala ngqa elizothula inkulumo esizweni. Ayalandela-ke amanye, nawo anemibala yawo. Izifundiswa ezasho njalo akumina Gatsheni! [Uhleko.]
Leli phepha-ke limenyezelwe kabanzi ezweni. Uma izakhamuzi zangakubo kamhlonishwa zingakayizwa indaba ngizokhuluma noNgqongqoshe ukuze alilethe ngoba lilethelwa khona ukuthi kusunguleke izingxoxo zokuthi sizoyisombulula kanjani le nkinga. Hhayi ukuthi iyaqala, kade yayixoxwa le ndaba kwaze kwathathwa izinqumo. Kwaze kwenziwa ngisho uhlelo lokuthi umhlaba uzothengwa kanjani futhi uzobuyiswa kanjani.
Sikubeke kwacaca ukuthi lezo zinhlelo sibona ukuthi azikwazanga ukufinyelela engqikithini yendaba, yingakho nje sesithi asibuyele ezingxoxweni, njengesizwe, siluxoxe lolu daba ngoba sazi khona lokhu okushoyo ukuthi ngomhlaba kwachitheka igazi. Asifuni-ke liphinde lichitheke. Sifuna ukusebenzisa uMthethosisekelo ukuyisombulula le nkinga. Ngiyabonga Somlomo. [Ihlombe.] (Translation of isiZulu paragraphs follows.)
[Mr V B NDLOVU: Speaker, I wish to thank the president for his response. First, hon President, our forefathers died fighting for possession of the land. As a rural man, I do not understand what the Green Paper the President is referring to is.
Secondly, I do not know anything about the forums that the President is talking about. Where I come from some communities were allocated some land to build their homes, which were later demolished and they ended up having no place to live.
Does the President not think that the time has come to seriously consider issues of land redistribution and resettlement when it is such a long time after 1994? We must not forget that blood was shed for possession of this very land.
Speaker and the hon member of the National Assembly, a Green Paper is a tentative government report and consultation document of policy proposals for debate and discussion. It is the first step in changing the law, which the public is always informed about. Other papers with different colours then follow. That is what educated people told me, Gatsheni! [Clan name.] [Laughter.]
The general public was informed about the paper. If your community has not heard anything about it, I will ask the Minister to do it. The aim of informing the public about it is to initiate discussions to solve problems at hand. We have been discussing the issue for a long time and we even made decisions about it. We even devised the land redistribution programme.
We have already explained that those programmes proved to be unsuccessful; that is why we are discussing the issue again, as a nation. We have not forgotten about the bloodshed for possession of the land and we do not want it to happen again. Our aim is to follow policies of our Constitution to solve this problem. Thank you, Speaker. [Applause.]]
Mr Speaker, Mr President, your response to this question deals with peripheral issues with regard to meaningful land reform and land tenure reform for the majority of poor South Africans. My question in this regard is: What will you and the Minister of Rural Development and Land Reform do to address the issue dealing with the fact that 27 million South African citizens living on communal land and in former homelands do so with no formal security of tenure? Will you hold discussions with traditional leaders to ensure practical feudal land tenure reform, which the National Development Plan, NDP, refers to as the single biggest threat to comprehensive rural development in South Africa, and especially in the former homelands? I thank you.
Hon Speaker, I don't think in my answer I'm dealing with the peripheral issues; I'm dealing with the real issues. We are saying there is a Green Paper that is out there for discussion. If the hon member has views, that Green Paper gives him the opportunity to engage and deal with this very serious issue of land hunger in this country. He is absolutely welcome to engage. I don't think he is expecting that, as we say "let us discuss this", we must impose solutions or what we think. There is no one who is not going to participate. The traditional leaders are invited to participate. The political parties are also invited so that we can hear what their thinking is about the land issue because we haven't heard it, as well as civil society. So, the matter is being reopened for debate, precisely to address the very picture that he has painted of the land question in this country. So, we are inviting everyone to participate. You are invited to be part of the debate as well, hon member. Thank you. [Applause.]
Mr Speaker ... [Interjections.] Ask "Skreepot" about that!
Besides the positive developments in Nkandla, we believe that there are momentous challenges throughout the country. I can give you examples in Limpopo's rural areas of Nandoni, Muyexe and Mopani, though you gave the presidential programme on rural development, where you promised to address a number of problems apart from the agricultural problems, the land reforms there. You spoke of the water, the water pipes, boreholes, electricity, toilets, etc, something which has not been done until today, after a very, very long time.
We want to know when you are going to handle that, or have you been able to go and hold a meeting with the people there at all, or even the relevant Minister? When are you going to handle these particular problems, agricultural problems, as cited in that particular area?
Hon Speaker, well, the hon member, I'm sure, is aware that we have been to Limpopo many times. We have met the people in Limpopo and discussed the issues. Some of the areas he is mentioning, the Minister of Rural Development has visited. I have also been there at some given time. There is one thing that one cannot do. One cannot - unless one is a magician - solve the problems of this country overnight.
There are programmes of rural development that have been rolled out and that are being implemented. I don't think the Minister can be in every corner of this country at the same time. It is impossible, unless one is a magician. So, those matters and areas are being taken care of. This is in addition to the normal programmes of the province and the municipalities. Rural development is an additional kind of programme that comes in to make the intervention. So, we do have those areas in mind and something is happening, particularly at Muyexe, which you have mentioned. Thank you. [Applause.]
UMnu P S SIZANI: Mongameli, kukho abantu abafika kule Ndlu beze kumela abantu abangayi nokuya kubo. Iinkosi zelizwe lethu ziyayithatha inxaxheba kule ngxoxo yomhlaba, iNdlu kaZwelonke kunye nezindlu zamaphondo ziyakwenza oko. Umhlekazi uyayazi loo nto koko uyibuza nje kuba kukho abantu abaninzi abahleli apha. [Kwahlekwa.]
Mhlekazi, mna ke ndifuna ukuqonda ukuba le comprehensive land reforms strategy evunywe yiKhabhinethi, ithini ngabantu abavela ngaphandle abangazimiselanga kulima, nabangazimiselanga ukuba ngabahlali baseMzantsi Afrika, abafika ngokuthenga umhlaba baze bawugcine bangawusebenzisi. Incedisa njani loo nto ekongezeni ukutya elizweni lethu? [Kwaqhwatywa.]
UMONGAMELI WERIPHABLIKI YOMZANTSI AFRICA: Somlomo, hayi, eli phepha sithetha ngalo liyayichaphazela loo ndawo kwaye asisoze siyiyeke kwaphela. Indlela lo mhlaba wethu oza kuphathwa ngayo iyayichaphazela into yabantu abasuka ngaphandle beze kuthenga umhlaba, kwaye siza kuyilungisa xa kuqosheliswa lo mcimbi sithetha ngawo. Isisombululo siza kuba khona, abasayi kuvunyelwa ukuba babe nomhlaba apho basuka khona baphinde babe nomhlaba nalapha sibe singenawo umhlaba thina. [Uwele-wele.] [Kwaqhwatywa.] koko sifuna ukuyenza loo nto phantsi kweempembelelo zoMgaqo-siseko kunye noMthetho. (Translation of isiXhosa paragraphs follows.)
[Mr P S SIZANI: Hon President, there are members in this House who claim to represent people whom they do not even visit in their constituencies. Our country's chiefs do participate in the land debate, under the auspices of the National House of Traditional Leaders and the provincial houses of traditional leaders. The hon member knows that, but just asked the question because there is a huge audience here. [Laughter.]
Sir, as far as I am concerned, I would like to find out what the comprehensive land reform strategy, which has been approved by Cabinet, says about foreigners who have no intention to farm or to be residents of South Africa but just come to this country to buy land and do not use it. How does that contribute to food security in our country? [Applause.]
Hon Speaker, the Green Paper I'm referring to touches on this issue, and we will address it. The manner in which our land will be managed will affect the question of foreigners who come to this country to buy land, and that is something which will be addressed by the Green Paper. We will find a solution, and foreigners will not be allowed to own land in this country whilst we ourselves do not have land. [Interjections.] [Applause.] However, everything will be done in terms of the Constitution and according to the laws of this country.]
Sorry, Speaker, may I address you? There is no interpreting. Mr President, we would love to hear what you are saying but there is no interpreting.
Can someone check why there is no interpreting? Is there interpreting? [Interjections.] Order, hon members, order! [Interjections.] Hon members, order! Hon Deputy Ministers, order! [Laughter.] [Interjections.] Is there interpreting yet? [Interjections.]
You will have to speak in all the official languages, Mr President, one after the other! [Laughter.] All right, we now have interpreting. Continue, hon President.
Besendigqibile, Somlomo. [I have already made my point, hon Speaker.] [Interjections.] [Applause.]
Economic downgrades and plan of action in response
21. Mr L W Greyling (ID) asked President of the Republic: Whether, in view of the recent downgrades by Moody's and Standard and Poor's, he intends to present his programme of action on the economy to Parliament (details furnished); if not, why not; if so, what are the relevant details? NO3871E
Speaker and hon member, our task as government is to lay the foundations for long-term growth and job creation in a complex global environment where developments in other economies impact directly on local economic performance. Over the past few months, we have been faced by the twin challenges of slower growth, caused by a slowdown in the global economy, as well as unprocedural strikes in parts of the mining industry. Despite these difficulties, we remain focused on implementing our economic programmes aimed at achieving prosperity and a better life for all. We are building a thriving mixed economy, where the state, private capital, co-operatives and other forms of social ownership complement each other in an integrated way to eliminate poverty and foster shared economic growth.
The state of the nation address this year outlined that the central and most pressing challenges we face are unemployment, poverty and inequality. In responding to the three, we must simultaneously accelerate economic growth, which will assist us to create jobs, and promote dignity and social stability. Ministers regularly share with this House various aspects of the implementation of our economic programmes. To be able to achieve the prosperous society we seek, we need to, in summary, do the following: enhance growth and job creation; narrow inequality and the income gaps, especially between poor and upper-income groups, while expanding the ownership, control and management of the economy; continue improving the living conditions of poor communities; implement our economic and social policies more effectively; continue improving our education system and skills development; help small and medium-sized businesses to grow, employ and export. This should be done to sharpen the delivery of our infrastructure programme throughout the country and continue to deepen our fight against crime and corruption.
Economic transformation remains central to these programmes, in order to address the legacy of the past and promote reconciliation and growth. This includes promoting the ownership, control and management of the economy by black people, women, the youth and persons with disabilities. To respond in particular to the global economic slowdown and its impact locally, on 17 October I hosted a dialogue of Nedlac social partners to consider the current economic challenges we face. The programme of action arising from that session builds on the coherent broader vision set out in the National Development Plan and the complementary economic strategy contained in the New Growth Path.
In addition, on 25 October, the Minister of Finance tabled the Medium-Term Budget Policy Statement, which set out government's fiscal and economic policy for the next three years. In the long term, what we want the world to understand is that our biggest strength is the sound institutional framework of the country, built on the foundation of the Constitution. This framework has enabled resilience and makes South Africa capable of mediating the contradictions that sometimes become apparent in our young democracy.
We have held four national general elections, which have given practical expression to the country's commitment to democracy. We have a fully functional governance system with co-operation amongst the executive, the judiciary and the legislature. We have effective checks and balances, which include Chapter 9 institutions. All these ingredients provide a sound and stable environment in which we are implementing our socioeconomic programmes. I thank you. [Applause.]
Speaker, through you to the hon President, reading through the different reasons the credit agencies gave for their downgrade offers us an ominous warning of the many challenges that we will have to confront as a nation if we wish to restore investor confidence and signal that South Africa is a stable economy in which to do business. One of the problems that were identified is that the government is giving mixed messages and is failing to provide clear policy direction. On that point, the hon Minister of Agriculture, Forestry and Fisheries told protesting farm workers this week that no farm worker would face criminal charges for taking part in the violent strike and protest action and that she would speak to the National Prosecuting Authority, NPA, to ensure that all cases of intimidation and public violence are withdrawn.
Hon President, this is arguing directly against the rule of law in South Africa, and surely it cannot be the policy of this government. If it isn't, will you then be taking harsh action against this Minister and distancing the government from her destructive utterances, which are inciting people to take part in violent wild-cat strikes and signalling to the world that we do not respect the rule of law? I thank you. [Applause.]
Speaker, firstly, on the question of the downgrade of the country, I would like to state that there is a global economic meltdown which has led to many countries being downgraded by these institutions, including the United States, Greece, Spain, and many other countries. It has not said that it is because these countries are saying different things. They are examining many things in each country, in terms of where the economy is. Here, in this country, one of the reasons we met with the social partners was precisely to say that as the leadership of this country, we all need to speak in one voice. We need to speak in one voice, and we are speaking in one voice. [Interjections.] There is no doubt about it, including the social partners. Ministers from time to time intervene in situations to address the situations. I haven't heard contradictions. Perhaps I must have missed the news. What I have heard from the Minister of Agriculture, Forestry and Fisheries has been them trying to mediate in order to try and calm down and solve this situation. [Interjections.]
Order! Order, hon members!
That is what I have heard. I didn't hear the Minister saying anything that you are quoting. I didn't hear that. [Interjections.] All that I know - what has been reported to me - is that the Minister has intervened in an attempt to solve the problem of the farm workers. That is what I have heard. Thank you, Speaker. [Applause.]
Speaker, through you to the hon President, the President had indicated in response to the previous speaker that the perceptions about a country have a major impact on the grading of a country. Clearly, Mr President, you have mentioned Greece and everywhere else, but in South Africa it was specifically mentioned that political instability is a cause of concern in this country. What we have seen at Marikana and what we are seeing in the Western Cape is clearly not good footage on television that is being broadcast across the world. What is of graver concern is that messages are currently also running in the media about contestation within the governing alliance that has reached the point where a Member of Parliament marched into an ANC branch meeting, intimidating those present to support you. [Interjections.]
Order, hon members! Order!
Would you not make a public statement condemning all such actions, so that you can make sure that within your party and within the country, a climate of political tolerance is created, so that the world no longer has these concerns about our country? [Interjections.] Would you make such a public statement? Thank you.
Speaker, firstly, what comes first in the grading is the state of the economy of the country. Then they look at various things. You quoted Marikana. Marikana emerged from a strike. It is not political instability. The workers went on strike, which was a strike outside the framework of how labour and capital function in this country. As soon as that happened, as I said earlier, the leadership in this country moved in response to that situation. I think that is an important element which indicates the strength of this country in terms of dealing with its own problems. As soon as the Western Cape strike happened, the leadership moved in to deal with the situation. Where does it arise from? It arises from the poor salaries that those people get. It is not a political issue. [Applause.] It is not caused by the political situation; it is caused by the conditions of the farm workers. [Interjections.]
Now, these are the two things indicated. Then you came to the ANC. Unfortunately, you don't understand the democracy of the ANC. [Applause.] That is a problem many of you have. Democracy means that there is a contestation in the party, and the ANC can claim to be number one in the contestation. [Applause.] In exercising democracy, the members of the ANC have the right to have preferences and make choices. That is what happened. That cannot be a minus; it is a plus to the democracy in this country. So, you cannot count that as a factor that influences the grading or downgrading of the country. It cannot be. It is, in fact, a plus that democracy works in this country. [Interjections.] In this country, anyone can stand up and make any statement. In Parliament here, people can talk until they sweat, making the wrong point. This is democracy. [Applause.] Thank you, Speaker.
Mr Speaker, the credit rating agency Moody's attributed their downgrading of South Africa's credit rating to:
The challenges posed by a negative investment climate in light of ... increased concerns about South Africa's future political stability.
This, Mr Speaker, is an indictment of the President and his government's ability to lead this country.
The hon President has tried here today to pass the buck on leading this country. He has tried to claim that it is the responsibility of members in the opposition benches to run South Africa, yet he is the head of state. These are the President's questions, and not questions to the opposition. We elected you, hon President, to lead this country. [Interjections.]
Order, hon members! Allow the member to be heard.
We elected you in this House to run this country as its leader. So, let us talk about leadership. Parliament is here to hold the hon President accountable for leading this country.
There are indications that he is not doing the job adequately. So, my question to him is: Will he explain to this House - that elected him - why he thinks, in the face of increasing economic instability under his leadership, he deserves to continue his term of office as President of the Republic of South Africa? [Applause.]
Hon Speaker, this country is stable. [Applause.] Once again, if you know democracies, you go to old democracies in this world, there are strikes continually but that does not spell the fact that there is instability. You can go to Paris, London and everywhere and you will find that there are strikes and those strikes are a feature of democracy. They are not instabilities. In countries where there is no democracy, if people protest or go on strike, they are dealt with. In democracies, they continue as long as they do it within the framework of the law, and that is what is happening in South Africa.
What the hon member is saying is the view of the opposition, and they have the right to have their own views. Nobody could compete with you. I do not think you would have an opposition agreeing with the ruling party. That is the a nature of democracy. This country is stable, absolutely. Thank you, hon Speaker. [Applause.]
Mr President, you are absolutely right and you have my absolute support on the statement that the importance of democracy is vital to the country and it is indeed vital to the credit rating. You and I and everyone else in this House know and would agree that if a country does not hold regular elections and refuses to hold elections, it will immediately get downgraded because the avoidance of losing power by preventing an election leads to the loss of investors' confidence. My question to you, Mr President, is: What is the difference between preventing the holding of election and preventing a vote of no confidence, which is a constitutional power of the opposition and each member of this House? The Constitutional court has required this National Assembly not to impair and, in fact, to assist ... [Interjections.]
Speaker, on a point of order: The member is not responding to the question that has been asked to the President.
I thought it was a question. If I was the President, I would gladly respond to questions put to me. In the meantime, the burden of answering the questions is on President Zuma. The question is: How can you authorise your caucus to prevent this side of the House from holding a vote of no confidence, which will have an enormous impact on the credit rating of the country, and how is that different from not holding an election? [Time expired.] [Applause.]
Hon Speaker, the member definitely knows that I am not a Member of Parliament. I did not participate in the processes of this Parliament. I have heard that there was an issue raised and members of this House are dealing with the issue as they would want to deal with it. As I'm told, there are manners and procedures in which these matters are raised. I don't want to enter into the details of the matter that I'm not involved in. I don't think that the member is expecting me to answer the question which he must get from other Members of this Parliament. Thank you, hon Speaker. [Applause.]
Presidential Infrastructure Investment Conference to improve quality of life and reinforce industrialisation strategy
22. Mr H P Maluleka (ANC) asked President of the Republic:
In light of his statement at the Presidential Infrastructure Investment Conference that infrastructure development is a catalyst to sustainable economic development and the improvement of the quality of life of our people (details furnished) (a) what constitutes actual change in the quality of life of our people through the envisaged infrastructure programme and (b) how he anticipates it to reinforce our industrialisation strategy? NO3870E
Order, order! Question 22 has been asked by hon H P Maluleka, who is unfortunately absent due to illness. The follow up question ... [Interjections.]
I am here, Mr Speaker.
Are you back from the hospital?
No, Mr Suka is taking the place of Mr Maluleka.
Are you Mr Maluleka?
I am replacing him, Mr Speaker.
Let me start from scratch. Mr Maluleka is absent due to illness. The follow-up question will be asked by the hon L Suka. [Applause.]
Hon Speaker, hon member, the actual change in the quality of life of our people means that we provide more people with running water, electricity and gas, better roads and telecommunications, improved clinics and schools, parks and city buildings. These investments will give our people a better life and enable them to engage better, both as workers and as citizens. They are meant to correct the historic underinvestment and discrimination against black communities which, to this day, underpin poverty and inequality in our country.
You will recall that at the time of the transition to democracy, less than half of African households had piped water on site, or electricity. Similar disparities existed for investment in roads, telecommunications, schools, clinics, parks and other services. We have already spent billions to overcome underinvestment in our communities, and work is ongoing.
The Census 2011 results indicated that, amongst other achievements, access to basic services such as piped water, electricity and refuse removal more than doubled over the period 1996 to 2011. However, many more communities are still waiting for water, electricity, sanitation and other services, hence the importance of prioritising infrastructure development.
To make a meaningful impact amongst the poorest areas, the National Infrastructure Plan has identified 23 district municipalities, which are mostly in the former so-called "homelands", where poverty runs deep. Providing services is harder in these regions. For a number of reasons, the households are often relatively scattered, increasing the cost of network infrastructure like roads and water.
Unemployment is still highest in these regions, which were set up under apartheid deliberately to lack land and other productive resources. Our infrastructure investment will definitely change lives for the better.
The National Infrastructure Plan will reinforce industrialisation in two main ways: Firstly, it will provide a market for capital goods and construction materials. We expect a substantial boost, amongst others, to producers of bitumen, cement, structural steel products, generators and electrical equipment of all kinds, as well as rolling stock for Transnet and the Passenger Rail Agency of South Africa, Prasa.
Secondly, infrastructure will improve the overall competitiveness of our economy and open new economic opportunities for both established and emerging enterprises. Key projects in this regard include the investments to open up the northern mining belt and improvements in rail and road transport between KwaZulu-Natal and Gauteng. They also include projects that will open new economic opportunities for people in impoverished rural areas, including the development corridors around the Eastern Cape and the North West.
Lastly, significantly, we also won the rights to share the hosting of the Square Kilometre Array, SKA, which brings a host of development opportunities for the country.
In addition, the Minister of Energy has also announced concessions on renewable energy. All these will add enormously to our infrastructure development successes. I thank you. [Applause.]
Mr Speaker, critical to sustaining the infrastructure development programme is the ability to maintain the high levels of public investment by government and public sector agencies backed by investments in skills development. Now, the question is: Are the President and Cabinet taking the necessary measures to ensure that our fiscus is able to sustain the level of investment required; and what steps have been taken in this regard in order to avoid what has happened in other countries, for instance Portugal, with similar programmes? I thank you.
Hon Speaker, yes, government is taking all the necessary steps to ensure that our programmes succeed. We have spent a lot of time discussing whether our plans will indeed have the resources to implement. Certainly, we have put forward figures and those figures have been announced publicly as to what amounts are there to implement our programmes. So, that has been taken care of and there is no doubt about it. What we have as plans are going to be implemented and funded. Thank you. [Applause.]
Mr Speaker and Mr President, there is no doubt that in general terms infrastructure development is a catalyst to sustainable economic development. When we look at some of the kinds of infrastructure development that have taken place in the past two years, like the World Cup stadia that have been built, many of them are standing as white elephants. We need to question the desirability of that kind of investment in South Africa.
But having said that, Mr President, I think we are sitting on a ticking time bomb at the moment because of a number of youth who are unemployed in our country. Some of those youth have tertiary qualifications and some of them do not have those qualifications. Have the President and the infrastructure group taken advantage of the fact that for any future investment in infrastructure, the youth would be favourably considered for employment so that in a few years from now, we can say that many of the youth are gainfully employed in our country? Thank you.
Hon Speaker, hon member, firstly, the question of youth unemployment is a global problem. It is currently not only a South African problem. All countries are trying their level best to address it. Unfortunately, it has come at a time when there is a global economic meltdown, which adds to the challenge.
With regard to government, we discuss the issues of how we deal with the issue of youth. In fact, there are programmes that address the question of the youth. I am leaving aside the discussion that is at the National Economic Development and Labour Council, Nedlac, which we announced here, and there were others in a democratic country who held a different view. We are discussing with them because we thought it was a programme that was very important. We are very hopeful that, at the end, that discussion will be concluded and we will be able to have a clear programme. Different departments are, in fact, tackling the question of youth employment. It may not be known, because perhaps people have not talked about the specifics in their departments and I am sure that when the Ministers have the time to discuss their budgets they will be able to indicate what they are doing in their own departments. There is a lot that is being done, but of course the challenge is huge. Thank you. [Applause.]
Hon Speaker, Mr President, following your response, massive infrastructure development is easy to announce, but more difficult to finance and impossible to execute if you do not have sufficient high skills such as engineering, planning management, accounting and quantity surveying. Eleven billion rand was left unspent last year due to the very failure of the execution. As a result the finalisation of hospital and school programmes is lacking. We know that South Africa is rated the lowest and poorest in the world in maths and science. What are the active practical plans that have been implemented in securing and acquiring the relevant skills to ensure the success of this infrastructure development?
Hon Speaker, putting aside our long-term emphasis on education, which we believe is an important element in any government to address the challenges of a country, which are ongoing, we have organised very recently an investment summit wherein we called everyone, including the private sector, unions, civil society, as well as people who deal with education of engineers, to allow those key players in the country to buy in to this programme; and we have placed an amount of money from the government into this. This has been welcomed by all these sectors as, in fact, one of the first in the country where there is total agreement, and they are prepared to put their money where their mouth is in terms of ensuring that these programmes succeed. We have a programme that is supported by all key players in the country, and I don't think we will ever go wrong. From the government point of view, there are very concrete programmes that are being implemented to ensure that this programme succeeds. So, we should have no worries with all those challenges that we are aware of, but we are acting within that knowledge to ensure that it succeeds. Thank you. [Applause.]
Mr Speaker and Mr President, gross fixed capital formation, which is a measure of infrastructure investment, fell from 30% of gross domestic product, GDP, in 1982 to 18% in 1994, where it stayed till now. We therefore welcome this government's planned expansion in infrastructure investment as recent events indicate that there is a particular need to invest in rural logistical infrastructure to make our agricultural enterprises more competitive and therefore better able to produce jobs and higher incomes for workers.
So, why is it, Mr President, that instead of investing in rural areas, everywhere millions of rand are wasted on the indulgent and luxurious quarters fit for the emperor without clothes, which is you, sir, to sit in the pseudo monarchic seat of Nkandla? [Applause.]
Hon Speaker, I thought that the next question deals with Nkandla, which is your last question. I don't know why the hon member couldn't wait so that he could get in and ask his question so that he could get clarity. I don't want to pre-empt this important question from the Leader of the Opposition in Parliament. [Laughter.]
Hon Speaker, I rise on a point of order: Rule 63 states that members may not use offensive language, and I believe that the hon James, by referring to the President in the manner that he did, is actually insulting the President, and that is offensive language in terms of Rule 63. Could you please rule in this regard?
Indeed, I will study Hansard and come back on this issue, hon members. We move on to Question 23.
Implementable plans for Africa Integrated Maritime strategy to improve security in South African waters
23. Mrs C Dudley (ACDP) asked the President of the Republic:
Whether he, as president of the programme for infrastructure development in Africa (PIDA), is taking any steps to coordinate implementable plans for the Africa Integrated Maritime (AIM) strategy; if not, why not; if so, (a) how is this envisaged to improve security in South African waters and (b) what are the further relevant details?