The DA objects to Vote No 27. The portfolio committee report tabled in this House did not reflect that we had reserved our position. We won't approve this budget because this department has, since 1994, failed to deliver a robust, ubiquitous and affordable communications ecosystem on which to build a dynamic economy for growth, and an accessible platform for government service delivery.
Kenya is fast becoming Africa's magnet for major information technology, IT, corporations to launch their expansions into Africa, bringing with them economic growth, new jobs and innovations to uplift impoverished communities.
South Africa's former IT leadership in Africa is there for the taking. Last year the Minister slammed the door on a deal between Telkom and global communications leader, Korea Telecom, KT, Corporation. Now Telkom is battling to stay afloat and KT Corporation has moved its 4G expertise to Rwanda.
In South Africa we delayed digital television migration, spectrum allocation and major policy initiatives until those in power decide to which cronies the spoils must accrue. The department fails to spend its allocated funds and fails to oversee that its entities efficiently spend their millions. There is no point in approving R2 billion to a department that is too flat-footed to spend it appropriately in order to invigorate the nation. [Applause.]
Hon Chairperson, Cope will not support this Budget Vote. We realise that the National Planning Commission and the hon Manuel recognised the strategic role of an effective Communications department and how it could fulfil this role in order to leverage job creation and support a knowledge economy in the country. However, and unfortunately, the Department of Communications under Minister Pule has become the single largest stumbling block in the roll-out of cheaper and faster broadband in South Africa, and affordable communication tariffs.
The department has imploded. It is tied up in legal battles, internal strife and disciplinary processes, and this budget that will be voted through today will be used to continue those battles.
Apart from policy revision, workshops, colloquiums, indabas, other talk shops and of course participation in controversially funded international conferences such as the Information and Communication Technology Conference held here last year in June, it has no measurable output. Its impact as an enabler of telecommunications roll-out is zero. In fact, the industry has to either fight it in court or to work around the Department of Communications to roll out infrastructure to offer services and to introduce the latest technologies in South Africa. State-owned entities reporting to the Department of Communications are equally in a shambles, mostly as a result of the Minister's political meddling in their functions and their affairs.
The Independent Communications Authority of South Africa, Icasa's, failure to free up spectrum for broadband roll-out remains and paralyses it due to the Minister's failure to conclude the spectrum policy.
The SA Broadcasting Corporation, SABC, has its third board of directors in as many years. The Minister was acutely aware of serious governance transgressions committed by the former chairperson Dr Ngubane and his board, but was too scared to intervene and to correct this. The ongoing tug of war about who was going to make the most money from set-top boxes remains ongoing.
Cope will not support this Budget Vote. Thank you. [Time expired.]
Hon House Chairperson, the IFP will support Budget Vote No 27, but we do so strongly urging resolution of the following challenges. Broadband roll-out must be expedited. In the year ahead, we cannot continue to go along the path of more empty promises and more empty rhetoric. We need real delivery and real progress.
In addition, affordable telecommunications must be an immediate priority. South Africans pay some of the highest communication costs in Africa and the world. High prices and poor penetration of broadband services prevent the majority of South Africans from effective and equitable participation in the economy and political life. It is clear that this department must champion the ordinary citizen's right to communicate.
The SABC, SA Post Office, Sapo, Telkom and the Independent Communications Authority of South Africa, Icasa, still face inherent and debilitating challenges. This is untenable and must change.
Moreover, we need a strong regulator, strong and effective entities and effective monitoring and oversight by this department.
We need to urgently address these challenges, failing which this department will continue to fall short in the financial year ahead in meeting its objective of bringing meaningful change to the lives of ordinary South Africans. I thank you.
Voorsitter, die VF Plus is bekommerd oor die gebrek aan vordering in hierdie departement. Velerlei gebreke in die departement is besig om die land se ekonomie te ondermyn. In die eerste plek wag die land gespanne om te verneem wanneer selfoon- en brebandtariewe substantief gaan verlaag. Ons erken daar is nou beweging in hierdie verband, maar dit is alreeds laat in die dag, en dit neem al jare om te verlaag. Die gehalte van selfoonseine is ook sigbaar besig om te verswak, en dit is duidelik dat die selfoonstelsels nie die volumes in die land kan dra nie. Die gehalte is daarom daar ook besig om te verlaag. Dit is in belang van ons ekonomie dat die swak diens aangespreek word.
Tweedens is ons bekommerd oor die stilswye van die Minister oor 'n selfoonoperateur in Suid-Afrika wat blykbaar op 'n onwettige wyse 'n lisensie in Iran bekom het en sodoende internasionale reg waaraan hierdie regering verbonde is, verbreek het. Die feit dat hooggeplaastes in die ANC in die bestuur van MTN dien of gedien het, skep baie vraagtekens. Een of ander tyd sal die regering hieroor verslag moet doen. Die VF Plus sal daarom nie die begrotingspos ondersteun nie. Dankie. (Translation of Afrikaans speech follows.)
[Adv A D ALBERTS: Chairperson, the FF Plus is worried about the lack of progress in this department. All kinds of failings in the department are undermining the country's economy. In the first place, the country is waiting on tenterhooks to hear when cell phone and broadband tariffs are going to be lowered substantially. We acknowledge that there is now some movement in this regard, but it is late in the day by now and it has already taken years for it to be lowered. The quality of cell phone signals is also deteriorating noticeably, and it is clear that the cell phone systems are unable to carry the volumes in the country. That is why the quality is deteriorating. In the interest of our economy, this poor service must be addressed.
Secondly, we are uneasy about the Minister's silence regarding a cell phone operator in South Africa who apparently in an illegal manner obtained a licence in Iran, thereby contravening international laws to which this government is committed. The fact that high-ranking ANC officials are serving or have served on the board of MTN has created a lot of questions. At some point the government will have to give an account of this. The FF Plus will therefore not support this Vote. Thank you.]
Hon Chairperson, let me start by saying that as the ANC we are going to support this budget. We also want to congratulate the department on the improvement in its capacity to spend its budget. This is a fact and it is on record. We must also congratulate the department, through the leadership of the Minister, on filling all the vacancies at the higher level positions, from the Senior Management Service, SMS, level. This is also a fact and it is on record.
We must also applaud the Minister who has taken the initiative to ensure that by 2014 the department and the entities do achieve a clean audit. [Applause.] We thank the Minister for taking that leadership role in doing so.
On the last issue, I would like to make a call on the DA and all other parties that they should join us as the ANC and this Ministry in fighting the cost to communicate in this country, because it has become one of the difficult issues to deal with and it has a negative impact in terms of development for small, medium and micro enterprises, SMMEs, and all other people who want to further develop their businesses. I thank you. [Applause.]
Vote agreed to. (Democratic Alliance, Congress of the People, Independent Democrats and Freedom Front Plus dissenting).
Vote No 28 - Economic Development - put.
Declarations of vote:
House Chair, the Department of Economic Development's main activity is the co-ordination of the efforts of the other departments. In other words, the department has no projects of its own. Rather, what it does is piggybacking on those departments with coherent projects.
As I indicated in my Budget debate, this department has oversight over entities that have been cannabalised from other departments. I wish to reiterate what I said in the Budget Vote debate. I said that the department is unnecessary as it merely duplicates the functions of other departments. The department's New Growth Path is failing to meet its target of creating five million jobs by 2020, and should be abandoned in favour of the National Development Plan, NDP, which the DA supports.
The Youth Employment Accord is a poor cousin of the youth wage subsidy, and will not address youth unemployment adequately. Small, medium and micro enterprises, SMMEs, are being failed by the Small Enterprise Finance Agency, Sefa, by allowing intermediaries to charge up to 40% interest on small loans. This department must be disbanded and the DA will not support the budget. [Applause.]
Hon House Chairperson, whilst the IFP supports this Budget Vote, I would like to make a plea to the Minister in this department that, when unemployment stands at 25,2% and the majority of our youth in this country are unemployed, it is incumbent to know - and I reiterate what I said in the Budget Vote - that we request you, Minister, to whip all your colleagues into line to make sure that they meet the objectives of creating the jobs as they have been mandated to do.
Like I said in the Budget Vote, have your finger in every single pie to make sure that young South Africans get jobs because you might take for granted what even some of your alliance partners said - that this is a ticking time bomb. Well, the reality is that it is and, being Youth Month, the reality is that the crisis of 1976 is fast going to erupt in 2013 if we do not arrest this situation of unemployment.
Therefore, we should not have unnecessary delays in implementing what should be implemented to make sure that you have got self-help and self- reliance where young people are able to sustain their own livelihoods.
Whilst there are grants, no nation can survive on grants alone. We need to walk the route of ensuring that young South Africans get jobs. Whilst we support you, Minister, please implement your plans speedily to ensure that you are able to deal with this issue as a matter of urgency.
Hon Chairperson, I'm surprised to hear what hon Mubu and hon Hlengwa had to say. This morning, when the department was tabling the Youth Employment Accord, they were very satisfied and they even commended the department. But, when we are here, it is a different story.
The ANC supports Budget Vote No 28 on the Economic Development. In a short period the department made a concrete and measurable impact. It re-focused the Industrial Development Corporation with a major increase in approvals of industrial funding. It piloted the creation of a new small business funding agency through merging three small business windows in government. The new agency has approved more than double the value of lending compared to its predecessors. It helped to prioritise jobs in the mandate of the competition authorities, as stand subsequently endorsed by the Competition Appeal Court. It ensured tough action against price fixing, monopoly behaviour and cartels in the food, construction and telecommunication industries, with record fines and innovative settlements. It oversaw the work of the I-Tech with a policy directive on scrap metals and better alignment of tariff adjustments with the industrialisation goals of the state. It supports the country's infrastructure plan and provides the technical team for the Presidential Infrastructure Co-ordinating Commission, PICC. It created a transparent system to evaluate the impact of public agencies on jobs, rural development, youth employment and gender equity. In short ... [Time expired.]
Division demanded.
The House divided:
AYES - 240: Abram, S; Adams, P E; Baloyi, M R; Bam-Mugwanya, V; Berend, S R; Bhanga, B M; Bhengu, F; Bhengu, P; Bhengu, N R; Bikani, F C; Bonhomme, T; Booi, M S; Borman, G M; Boshigo, D F; Botha, Y R; Botha, T; Bothman, S G; Burgess, C V; Buthelezi, M G; Cebekhulu, R S; Cele, M A; Chiloane, T D; Chohan, F I; Coleman, E M; Cwele, S C; Dambuza, B N; Daniels, P N; Davies, R H; De Lange, J H; Diale, L N; Diemu, B C; Dikgacwi, M M; Ditshetelo, I C; Dlakude, D E; Dlamini, B O; Dlodlo, A; Dlomo, B J; Dubazana, Z S; Dube, M C; Duma, N M; Ebrahim, E I; Ferguson, B D; Fransman, M L; Frolick, C T; Fubbs, J L; Gasebonwe, T M A; Gaum, A H; Gcume, N P; Gcwabaza, N E; Gelderblom, J P; Gigaba, K M N; Gina, N; Gololo, C L; Goqwana, M B; Gumede, D M; Hajaig, F; Hlengwa, M; Huang, S - B; Jacobus, L; Jeffery, J H; Kekana, C D; Kenye, T E; Kganare, D A; Khoarai, L P; Kholwane, S E; Khumalo, F E; Khunou, N P; Kilian, J D; Koornhof, G W; Koornhof, N J J v R; Kubayi, M T; Landers, L T; Lekgetho, G; Lekota, M G P; Lesoma, R M M; Line-Hendriks, H; Lishivha, T E; Luyenge, Z; Mabasa, X; Mabedla, N R; Mabuza, M C; Madisha, W M; Madlala, N M; Madlopha, C Q; Mafolo, M V; Magagula, V V; Magama, H T; Magubane, E; Magwanishe, G; Makasi, X C; Makhuba, H N; Makhubela-Mashele, L S; Makhubele, Z S; Makwetla, S P; Malale, M l; Malgas, H H; Maluleka, H P; Maluleke, J M; Manamela, K B; Manana, N C; Manganye, J; Mangena, M S; Manuel, T A; Mashatile, S P; Mashigo, R M; Mashishi, A C; Masilo, J M; Masutha, T M; Mathebe, D H; Mathibela, N F; Matlanyane, H F; Matshoba, J M; Mavunda, D W; Mayatula, S M; Maziya, A M; Mdakane, M R; Mfeketo, N C; Mfulo, A; Mgabadeli, H C; Mkhize, H B; Mkhulusi, N N P; Mlambo, E M; Mmusi, S G; Mnisi, N A; Mocumi, P A; Mohai, S J; Mohorosi, M; Mokoena, A D; Molebatsi, M A; Molewa, B E E; Moloi-Moropa, J C; Moloto, K A; Moni, C M; Mosimane, C K K; Moss, L N; Motlanthe, K P; Motsepe, R M; Motshekga, M A; Motshekga, M S; Mpontshane, A M; Msimang, C T; Msweli, H S; Mthethwa, E N; Mthethwa, E M; Mufamadi, T A; Mushwana, F F; Muthambi, A F; N'wamitwa- Shilubana, T L P; Nchabeleng, M E; Ndabandaba, L B G; Ndabeni, S T; Ndebele, J S; Ndlazi, A Z; Ndlovu, V B; Ndude, H N; Nel, A C; Nelson, W J; Nene, N M; Newhoudt-Druchen, W S; Ngcengwane, N D; Ngcobo, B T; Ngcobo, E N N; Ngele, N J; Ngubeni-Maluleka, J P; Ngwenya, W; Ngwenya-Mabila, P C; Nhanha, M A; Nhlengethwa, D G; Njikelana, S J; Njobe, M A A; Nkoana- Mashabane, M E; Nkomo, S J; Nkwinti, G E; Nonkonyana, M; November, N T; Ntapane, S Z; Ntuli, B M; Ntuli, Z C; Nxesi, T W; Nxumalo, M D; Nyalungu, R E; Nyanda, S; Nyekemba, E; Oliphant, M N; Oosthuizen, G C; Pandor, G N M; Peters, E D; Petersen-Maduna, P; Phaahla, M J; Phaliso, M N; Pilane-Majake, M C C; Pilusa-Mosoane, M E; Pule, D D; Radebe, G S; Radebe, B A; Radebe, J T; Ramatlhodi, N A; Ramodibe, D M; Schneemann, G D; Segale-Diswai, M J; Selau, G J; September, C C; Sexwale, T M G; Sibanyoni, J B; Sibiya, D; Sindane, G S; Singh, N; Sisulu, M V; Sithole, K P; Sithole, S C N; Sizani, P S; Smith, V G; Snell, G T; Sogoni, E M; Sonto, M R; Sosibo, J E; Suka, L; Sulliman, E M; Sunduza, T B; Thabethe, E; Tobias, T V; Tsebe, S R; Tseke, G K; Tsenoli, S L; Tshabalala, J; Tsotetsi, D R; Turok, B; Twala, N M; Van Der Merwe, L L; Van der Merwe, S C; van Rooyen, D D; van Wyk, A; Wayile, Z G; Williams, A J; Williams-De Bruyn, S T; Xaba, P P; Ximbi, D L; Xingwana, L M; Yengeni, L E; Zikalala, C N Z.
NOES - 61: Alberts, A D; Boinamo, G G; Bosman, L L; Coetzee, T W; Davidson, I O; De Freitas, M S F; Dreyer, A M; Du Toit, N D; Duncan, P C; Eloff, E H; Esau, S; Groenewald, P J; Harris, T; Hoosen, M H; James, W G; Kalyan, S V; Kloppers-Lourens, J C; Kohler-Barnard, D; Kopane, S P; Krumbock, G R; Lamoela, H; Lee, T D; Lorimer, J R B; Lotriet, A; Lovemore, A T; Mackenzie, G P D; Marais, S J F; Max, L H; Maynier, D J; Mazibuko, L D; McGluwa, J J; Michael, N W A; Mileham, K J; Mnqasela, M; More, E; Motau, S C; Mubu, K S; Mulder, C P; Ollis, I M; Paulse, S; Rabie, P J; Ramatlakane, L; Rogers, F A; Ross, D C; Schafer, D A; Schmidt, H C; Selfe, J; Shinn, M R; Smiles, D C; Steyn, A; Steyn, A C; Stubbe, D J; Swart, M; Swathe, M M; Terblanche, J F; Van den Berg, N J; Van Der Linde, N J; Van Der Westhuizen, A P; Van Schalkwyk, H C; Waters, M; Watson, A.
Vote accordingly agreed to.
Vote No 29 - Energy - put:
Declarations of vote:
Chairperson, the DA cannot in good conscience support this Budget Vote when our country is once again faced with the looming prospect of load shedding. Electricity reserve margins have dwindled to zero and below international standards.
The primary responsibility for energy security lies with the Minister of Energy, and it is unfortunate to state that this Ministry has not done enough to ensure that the lights stay on and our economy is not constrained by a severe lack of electricity.
This is the very same department that refused to review the Integrated Resource Plan and has now committed to a nuclear future which, in fact, is rejecting the recommendations of the National Development Plan.
Furthermore, there is roughly 2 500 megawatts of energy that can be utilised from co-generation projects. It is unfortunate that the department has not created the right incentives to ensure that this electricity demand is taken off the grid.
The DA is also appalled by the alleged corruption that has taken place at PetroSA. This is from a company that has already wasted R2 billion on exploring for nonexistent oil and gas in Egypt and Equatorial Guinea, and is embroiled in a scandal in Ghana.
The DA cannot support the budget of this department until we see greater levels of accountability and effectiveness, Minister, in addressing the energy challenges of our country. Thank you.
Chairperson, it is rather surprising when you get someone who is hardly active in our committee making such statements.
In the first place, the department has adequately expressed its strategy in terms of addressing the Integrated Resource Plan. And, in a very short time, we will be getting a presentation on the Integrated Energy Plan, which is the basis for a revised IRP once it goes through the Cabinet. The very 3 500 co-generation initiatives are what the department is looking into right now. Some of the state-owned entities are working with the private sector in terms of taking some of the initiatives on co-generation. We need to applaud the department for ensuring that there are appropriate systems in place that ended up uncovering the fraud and corruption in PetroSA. It is nothing else but the systems that are embedded in the governance of PetroSA that uncovered what has come out into the public.
I don't know about the Ghana scandal. All I know is that there is a good deal that has been worked out between the two countries.
In any way, in support of Budget Vote No 29, and on behalf of the ANC, I wish to share the following with this august House. The budget is supported as a sequel of influences, amongst others, from the public and this Parliament, and so we have been able to get a budget of such a good character. This is a feature typical of a responsive and caring government.
Our country is currently facing serious challenges on the supply of both electricity and liquid fuels. However, the Department of Energy supported by Eskom, the Central Energy Fund, PetroSA and other entities are doing their best to ensure that the supply of energy is as adequate as is practically possible. Once again, the ANC unequivocally supports the Budget Vote No 29. [Applause.]
Division demanded.
The House divided.
AYES - 235: Abram, S; Adams, P E; Baloyi, M R; Bam-Mugwanya, V; Berend, S R; Bhanga, B M; Bhengu, F; Bhengu, P; Bhengu, N R; Bikani, F C; Bonhomme, T; Booi, M S; Borman, G M; Boshigo, D F; Botha, Y R; Botha, T; Bothman, S G; Burgess, C V; Cebekhulu, R S; Cele, M A; Chiloane, T D; Chohan, F I; Coleman, E M; Cwele, S C; Dambuza, B N; Daniels, P N; Davies, R H; De Lange, J H; Diale, L N; Diemu, B C; Dikgacwi, M M; Ditshetelo, I C; Dlakude, D E; Dlamini, B O; Dlodlo, A; Dlomo, B J; Dubazana, Z S; Dube, M C; Duma, N M; Ebrahim, E I; Ferguson, B D; Fransman, M L; Fubbs, J L; Gasebonwe, T M A; Gaum, A H; Gcume, N P; Gcwabaza, N E; Gelderblom, J P; Gigaba, K M N; Gina, N; Gololo, C L; Goqwana, M B; Gumede, D M; Hajaig, F; Hlengwa, M; Huang, S - B; Jeffery, J H; Kekana, C D; Kenye, T E; Khoarai, L P; Kholwane, S E; Khumalo, F E; Khunou, N P; Kilian, J D; Koornhof, N J J v R; Koornhof, G W; Kubayi, M T; Landers, L T; Lekgetho, G; Lekota, M G P; Lesoma, R M M; Line-Hendriks, H; Lishivha, T E; Luyenge, Z; Mabasa, X; Mabedla, N R; Mabuza, M C; Mackenzie, G P D; Madisha, W M; Madlala, N M; Madlopha, C Q; Mafolo, M V; Magagula, V V; Magama, H T; Magubane, E; Magwanishe, G; Makasi, X C; Makhuba, H N; Makhubela-Mashele, L S; Makhubele, Z S; Makwetla, S P; Malale, M l; Malgas, H H; Maluleka, H P; Maluleke, J M; Manamela, K B; Manana, N C; Manganye, J; Mangena, M S; Manuel, T A; Mapisa-Nqakula, N N; Mashatile, S P; Mashigo, R M; Mashishi, A C; Masilo, J M; Masutha, T M; Mathebe, D H; Mathibela, N F; Matlanyane, H F; Matshoba, J M; Mayatula, S M; Maziya, A M; Mdakane, M R; Mfeketo, N C; Mfulo, A; Mgabadeli, H C; Mjobo, L N; Mkhize, H B; Mkhulusi, N N P; Mlambo, E M; Mmusi, S G; Mnisi, N A; Mocumi, P A; Mohai, S J; Mohorosi, M; Mokoena, A D; Molebatsi, M A; Molewa, B E E; Moloi-Moropa, J C; Moloto, K A; Moni, C M; Moss, L N; Motlanthe, K P; Motsepe, R M; Motshekga, M A; Motshekga, M S; Mpontshane, A M; Msimang, C T; Msweli, H S; Mthethwa, E N; Mufamadi, T A; Mushwana, F F; Muthambi, A F; N'wamitwa-Shilubana, T L P; Nchabeleng, M E; Ndabandaba, L B G; Ndabeni, S T; Ndebele, J S; Ndlazi, A Z; Ndlovu, V B; Ndude, H N; Nel, A C; Nelson, W J; Nene, N M; Newhoudt-Druchen, W S; Ngcengwane, N D; Ngcobo, B T; Ngcobo, E N N; Ngele, N J; Ngubeni-Maluleka, J P; Ngwenya, W; Ngwenya-Mabila, P C; Nhanha, M A; Nhlengethwa, D G; Njikelana, S J; Njobe, M A A; Nkoana-Mashabane, M E; Nkomo, S J; Nkwinti, G E; Nonkonyana, M; November, N T; Ntapane, S Z; Ntuli, B M; Ntuli, Z C; Nxesi, T W; Nxumalo, M D; Nyalungu, R E; Nyanda, S; Nyekemba, E; Oliphant, M N; Oosthuizen, G C; Pandor, G N M; Peters, E D; Petersen-Maduna, P; Phaahla, M J; Phaliso, M N; Pilane-Majake, M C C; Pilusa-Mosoane, M E; Pule, D D; Radebe, G S; Radebe, J T; Radebe, B A; Ramatlakane, L; Ramatlhodi, N A; Ramodibe, D M; Schneemann, G D; Segale-Diswai, M J; Selau, G J; September, C C; Sexwale, T M G; Sibanyoni, J B; Sibiya, D; Sindane, G S; Sisulu, M V; Sithole, K P; Sithole, S C N; Sizani, P S; Smith, V G; Snell, G T; Sogoni, E M; Sonto, M R; Sosibo, J E; Suka, L; Sulliman, E M; Sunduza, T B; Surty, M E; Thabethe, E; Tobias, T V; Tsebe, S R; Tseke, G K; Tsenoli, S L; Tshabalala, J; Tsotetsi, D R; Turok, B; Twala, N M; Van Der Merwe, L L; Van der Merwe, S C; van Rooyen, D D; van Wyk, A; Wayile, Z G; Williams, A J; Williams-De Bruyn, S T; Xaba, P P; Ximbi, D L; Xingwana, L