Hon Deputy Speaker, hon Deputy President ... [Interjections.]
My apologies, hon Sogoni. Hon members, the level of noise is increasing.
Thank you, hon Deputy Speaker.
Order, hon members! The noise levels are rising higher and higher.
Thank you for your protection, hon Deputy Speaker. Hon Deputy President, hon members, and hon comrades from Ekurhuleni, sanibonani [good afternoon].
Please allow me to take this opportunity to table the report of the Standing Committee on Appropriations on the 2013-14 Division of Revenue Amendment Bill. The statement highlights the changes which have occurred in the 2013-14 Division of Revenue Act and in all three spheres of government.
The Division of Revenue Amendment Bill, together with the Medium-Term Budget Policy Statement and the Adjustments Appropriation Bill, was tabled in this House by the Minister of Finance on 23 October 2013. The Constitution of the Republic of South Africa requires that an Act of Parliament provides for the equitable division of revenue raised nationally among the national, provincial and local spheres of government. As that is the case, the Financial and Fiscal Commission was consulted and their recommendations have been taken on board.
Section 9(1) of the Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009, requires that the Standing Committee on Appropriations must consider and report on the Division of Revenue Amendment Bill after the fiscal framework has been adopted. It is against this backdrop that the committee is reporting on the changes in the 2013-14 Division of Revenue Act.
The committee welcomes the Division of Revenue Amendment Bill, 2013. We should ensure that the lives of our people are improved.
The committee noted the downward revision of the national allocation that resulted in the upward revision of the provincial and municipal allocations, where an amount of R3 058 billion was moved from the national allocation to increase provincial and municipal allocations.
The provincial upward adjustment is meant to cater for the following. These are, firstly, for the increase in the cost of wages for 2013-14 due to higher than anticipated inflation; secondly, to assist provinces with the increased cost of upgrading clerical positions as in the Department of Public Service and Administration 2012 circular; and, thirdly, for the transfers of payments for the devolution of property rate funds which were not transferred in 2012-13.
The committee welcomes the allocation for hosting the African Nations Championship Football tournament and the emergency medical services for the three host cities in the Free State, Limpopo and the Western Cape.
The committee also noted the declared underexpenditure on the health facility revitalisation grant component, which has been converted into a direct grant, which led to the downward adjustment of the national health grants.
The upward adjustment for the local government equitable share allocation is meant to cater for the following. Firstly, it is meant to cater for rollovers from the Bela-Bela Local Municipality that were not transferred in 2012-13 due to noncompliance. Secondly, it is for rollovers for the regional bulk infrastructure grant projects in five municipalities. Thirdly, it is for roll-overs for the rural household infrastructure grant. Fourthly, is rollovers for Naledi Local Municipality in the Free State for the Expanded Public Works Programme integrated for municipalities and, lastly, it is for new municipal disaster recovery grants to repair significant flood damage in the Western Cape, Eastern Cape, Limpopo and KwaZulu-Natal.
The only concern the committee has is around the rescheduling of the rural household infrastructure grant. This grant is aimed at providing capital funding for the reduction of rural water and sanitation backlogs. The committee is of the view that the rescheduling of the rural household infrastructure grant to an indirect grant may not result in improvement in the grant's performance.
The committee is also concerned, Comrade Mashego, about the level of debt owed by other spheres of government to local municipalities for basic services. Therefore, we would like to urge all those who are the recipients to pay for those services. The lack of payment for municipal services by other government departments destroys the capabilities of those local municipalities to collect adequate revenues to deal with service delivery backlogs.
We think that, working together, we will always do more to address poverty, inequalities and unemployment. The ANC supports the Division of Revenue Amendment Bill. I thank you. [Applause.]
There was no debate.
Bill read a second time.