Hon Deputy Speaker, hon colleagues of the ANC and hon members, the overview of the National Development Plan, NDP, quotes the Reconstruction and Development Programme as follows:
No political democracy can survive and flourish if the mass of our people remain in poverty, without land, without tangible prospects for a better life. Attacking poverty and deprivation must therefore be the first priority of a democratic government.
The 2014 Budget Review acknowledges the progress that has been made in improving the lives of the people. However, there remains a high level of poverty, inequality and unemployment, especially amongst the young people of our country. It acknowledges that in many parts of our country, public services are uneven or of poor quality, and that our economy is not growing fast enough to meet the challenges we face.
Therefore, the 2014 Budget and this Division of Revenue Bill address these challenges over the mediumterm in line with South Africa's long-term framework for economic growth and social development - the NDP. This signals the beginning of the implementation of the NDP across government.
The NDP Vision 2030 clearly states that the fiscal policy would be expected to play a central role in influencing the pace at which the economy will grow and its capacity to deal with key challenges that will arise over the next two decades. Domestic challenges include poor education and health outcomes, the challenges of coping with rapid urbanisation, infrastructure capacity weaknesses coupled with inadequate investment levels as well as household and spatial inequalities.
The inadequacy of infrastructure, particularly with respect to port facilities, roads, rail, energy, water and sanitation can hamper the long- term growth potential. The other challenge identified refers to low expenditure of conditional grants intended to address national policy priorities.
But how does the government propose to respond to these challenges? Firstly, to address low spending on infrastructure, the 2013 Division of Revenue Act implored any provincial department or municipality intending to undertake any infrastructure project to submit a detailed plan two years prior to the year of proposed implementation. Secondly, in the event of the funds being stopped as a result of slow spending, the receiving officer must submit a report explaining why those funds were stopped; in other words, the receiving officer is given the responsibility of explaining why those funds were not spent.
A new sanitation grant has been introduced to eradicate the bucket system in the country over the next two years. This grant will be administered by the Human Settlements department in conjunction with the Department of Water Affairs and the Department of Co-operative Governance and Traditional Affairs. However, I am sure the next Parliament will have to review in the next two years whether these objectives have been achieved.
A new clause 14 of the Division of Revenue Bill institutionalises the Built Environment Performance Plan, BEPP, as a tool for changing the spatial development patterns of our cities. The BEPP bridges the gap between the IDP and the Budget, giving effect to the Spatial Development Framework. This is a very detailed programme designed, amongst others, to support integrated city development.
The NDP says, and I quote:
Urban sprawl should be contained and possibly reversed as denser forms of development are more efficient in terms of land usage, infrastructure usage and environmental protection. The major concentration of urban poor should be spatially linked into the mainstream of city life through investments in transport infrastructure and the connecting corridors of development.
This Division of Revenue Bill seeks to address this programme. The ANC-led government strengthened the social infrastructure by consolidating the health infrastructure grants into one in order to improve the efficacy and value for money, improving oversight of the education infrastructure grant and ensuring that resources were put aside for maintenance. Hon members, this budget provides more resources to the poorer municipalities so that those municipalities can deliver free basic services such as water, refuse removal and electricity to the poor municipalities, especially to the 23 indentified poor districts that have been prioritised, to ensure that there is running water in every household in the rural areas of our country. The DA rejects the extension of all services to the poor. [Interjections.] Yes, that's why yesterday you opposed the fiscal framework and today you will oppose the Division of Revenue Bill. So, it is simple. It means that you don't want the poor people of our country to receive services, otherwise you would not oppose the Division of Revenue Bill.
The DA fails here in Cape Town to provide these services to poorer communities. They want the national government in turn to deprive our people of these basic services. The poor people should know by now that the DA has no interest in providing them with these services. All they need is their vote. You will not fool our people in Manenberg, Mitchell's Plain, Khayelitsha and Nyanga. [Interjections.] No wonder crime is so high in those places. This government is committed to fighting crime and corruption and this Division of Revenue Bill provides for services to fight corruption by strengthening the Office of the Procurement-General. However, the DA rejects this. Again, yesterday, the DA voted against the Public Service Administration and Management Bill because it proposes to professionalise the Public Service in agreement with the unions. What does the DA do? It rejects the Bill so that it can cling to the past and continue to complain about services that are not being rendered.
The DA in the past few weeks opposed all the laws that aim to improve the lives of the poor. The DA in the Western Cape, for example, refuses to allow children from poor communities to be sent to Cuba to be trained as doctors. Yet, all the other provinces send the children to Cuba so that they can be trained as doctors. It is the only province that refuses to allow children to be sent to Cuba to be trained as doctors. All it wants is to supply the poor people with blue t-shirts. The ANC uses this budget as a tool to improve the lives of the poor, but the DA says no, that's not their constituency.
The DA opposes hon Swart's attempts through the ANC to provide universal access to health, which is the National Health Insurance, NHI. What do they want from the people? They want their votes, because if the NHI is provided, they will lose profits derived from their private health services. They fear a lot of people might be treated at these facilities. They reject all programmes intended to improve the lives of the poor.
Our manifesto says we must implement the NDP. The ANC government established the National Planning Commission and commissioned it to come up with the NDP. We are implementing the NDP, and not because the DA all of a sudden chooses to become the champions of the NDP as if they were implementing it in their own province. [Interjections.] No, you are not.
The Division of Revenue Bill enjoins the Department of Human Settlements to devolve the powers to deliver houses to the six metropolitan municipalities. Initially, as we know, some metros do not have the capacity to deliver houses ... [Interjections.] ... including Cape Town. The other metros are better off, because they are at level 2. I am not sure if Cape Town is at that same level. [Interjections.] I know it is not.
The government has created a capacity-building grant of R900 million over the MTEF period in order for the municipalities to receive a human settlements grant to be able to deliver houses. This process will accelerate the delivery of houses as most bulk infrastructure planning takes place at the local government level. The ANC welcomes steps taken by the National Treasury in creating direct grants that are ring-fenced for a specific purpose. The indirect grants are meant to support those municipalities that may not have sufficient capacity to deliver those services. This requirement is in line with section 154 of the Constitution which enjoins the national and provincial government to support local government to deliver services.
In conclusion, may I take this opportunity to thank the ANC for giving me the opportunity to be in this Parliament. Without the ANC, I would never have been able to speak on this podium. I would also like to thank my colleagues for the support they have given me over the years, especially my colleagues in the financial cluster, Comrade Mufamadi, the Chairperson of the Standing Committee on Finance, Comrade Charel De Beer, the Chairperson of the Select Committee on Finance, and Comrade Tebogo Chaane, the Chairperson of the Select Committee on Appropriations, as well as the study group led by the Whip, hon Mashigo.
I would also like to extend my sincere thanks to all the members of the committee with whom we have worked over the past five years, including the DA members, who have been very supportive in this work, though they change when they come to this House. I don't know whether they have two mandates, one mandate for the committee and one for the House. However, I thank you for your support over the years.
I would like to thank the staff for their hard work in ensuring that the work of the committee was achieved, and also my secretary, Mrs Kakaza. The ANC supports the Division of Revenue Bill. Thank you, Deputy Speaker. [Applause.]
House Chairperson, for a chairperson of the appropriations committee, the hon Sogoni has an alarmingly poor grasp of numbers, the Western Cape's delivery numbers in particular. Here are the numbers, hon Sogoni: 76% of our provincial budget of the Western Cape is spent in poor areas. The Western Cape has the highest access to water, flush toilets and electricity of any province ... [Interjections.] There is access to free basic sanitation, water and electricity. [Interjections.]
Order, hon members! Order!
We have reduced the number of underperforming schools, under the ANC, from 85 to 23 today. When we took over the provincial government there was a shortage of 6 000 nurses; a vacancy rate of 34%. Today that vacancy rate is 1%. Those are the numbers of the DA's record in government, hon Sogoni. [Interjections.]
Turning now to the Division of Revenue Bill, the memo to the Bill says it is focused on promoting economic development, investing in infrastructure, and creating jobs. Unfortunately, like the fiscal framework, this Division of Revenue Bill is too conservative to achieve these objectives.
On Tuesday the Minister wondered whether the DA had suddenly became a radical party. The answer to that question, hon Minister, is no. We have always been a radical party. [Interjections.] Radical reform is the only way to tackle our economic problems and achieve our country's great potential. Radical reform is the only way to help the private sector to create the jobs we need. The agenda for that reform is contained in the DA's manifesto. This would set us on the path to drive growth up to 8% and help the economy create 6 million jobs, hon Minister. Those are not the DA's numbers, they come from a working paper written by Treasury's own researchers and published by the Reserve Bank last year.
This document shows our policy agenda. This document - our alternative budget - shows how we can afford to implement it within the fiscal constraints that this government has left us. I encourage all members to download the DA's alternative budget from the website, because it contains R8,7 billion's worth of tax cuts, R2 billion more spent on job creation, R9 billion more spent on education, R3 billion to put more capital in the hands of poor South Africans and R4,5 billion to secure our communities.
That doesn't mean that the DA believes we should live beyond our means. We cannot allow the Budget deficit number to run higher. But the good news is that we can afford all of this and still reduce the Budget deficit to 4%. [Interjections.]
Hon Chairperson, on a point of order!
Yes, hon member?
Chairperson, on a point of order: Is it parliamentary for an hon member to debate an item that is not on the Order Paper, because what is on the Order Paper is the Division of Revenue Bill, not the Budget Speech. Thank you.
Hon Harris, let's stick to the topic at hand, although we should also keep in mind that this is a broad political debate. Nevertheless, stick to the item on the Order Paper, please.
Chair, the question is, what would the DA do if we were passing this Division of Revenue Bill? I'll tell you what we would do.
We would streamline government by shutting down and integrating certain government departments and programmes, reducing the budget for the Presidency, and disband the National Youth Development Agency. By so doing, we would save more than R10 billion.
We would stop corrupt public servants from doing business with the state and would introduce a no-frills ministerial handbook - that's R13 billion.
We would introduce real cost-saving measures like we have done in the Western Cape government, where we reduced ANC spending in the provincial government on catering by 28%, on venues by 29%, on consultants by 38% and on advertising by 52%.
If this whole government operated like the DA does in government, we would save R5,8 billion on those noncore expenditure items. That is how the DA would afford to implement our policies. It would be the radical change that South Africa needs to create jobs and grow the economy. It would be the opposite of this conservative Budget that we have before us today.
If this is really Minister Gordhan's last term as Finance Minister, then I need to end by thanking him for his openness in working with Parliament and his respect for our oversight role here. Our debates, I am sure you will all agree, have been robust, but were focused on policy, as they should be. Although we disagree on how to fix South Africa's economic problems, I know that National Treasury and the finance family is dedicated to the Constitution and has the best interests of South Africans at heart.
This Minister is a man of integrity who lives by the standard that he sets. If he leaves, he will leave big shoes to fill. I thank you. [Applause.]
Hon Chairperson, hon Ministers, hon members, Cope rises in this debate to offer some comment and support for the Division of Revenue Bill for government to continue in its functions.
I am not a member of the appropriations committee. However, my esteemed colleague, hon Leonard Ramatlakane, on whose behalf I speak, is and he has participated in the public hearings with institutions and some departments of the Division of Revenue Act.
The committee was briefed and was particularly interested to see how the Budget is aligned to the National Development Plan, NDP, process. The building blocks for the alignment of the Budget and the NDP exist, but more detailed work is required in the departmental strategic plans and the annual performance plan. The incoming committee's MPs need to pay attention to the details that link the Budget to the NDP. As is always the case, the Division of Revenue Bill sees 47,5% allocated to national government, 43,5% to provincial government and 9% to local government.
We raised some concerns about the exchangeability between conditional grants. We are concerned that departmental capacity continues to be a moving target year on year. We are warned that the programme to build departmental capacity is not yielding positive results. Much work must be done to build departmental capacity and to stop relying on the capacity of consultants as this does not come cheaply.
It was revealed to the committee through the SA Local Government Association, Salga, presentation that much work needs to be done to ensure that the Intergovernmental Relations Framework works. We cannot, year after year, have the story of the unfunded mandates whilst the Intergovernmental Relations Framework Act empowers local and provincial government to jointly plan projects and developments.
We are concerned that the housing subsidy does not produce the desired results. We want to see the government act to resolve this.
We sincerely encourage the incoming committee members to take heed of these concerns that have been raised. Cope supports the Division of Revenue Bill. I thank you. [Applause.]
Hon Chairperson, is a pleasure to follow the hon Ferguson. She said that she does not serve on the committee, but I hope that next time round she will do so on behalf of Cope.
For me it has been a real pleasure to serve on the appropriations committee. It's remarkable that this committee deals with wide-ranging budgetary issues across all spheres of government. I want to thank the chair and all the colleagues in the committee for their collegiality at all times.
My humble suggestion to all parties here is that all new MPs should serve a stint on the appropriations committee for three to six months, because the committee allows one to have a broad view of what exactly is happening in government as far as expenditure is concerned. I think it will do all members good, even if they serve on portfolio committees. This is a committee that gives one a broad view.
The IFP will support this particular Bill. It is a constitutional requirement. But we have some suggestions, moving forward into the Fifth Parliament. I trust that the committees that will interrogate the budgets - the parliamentary committees and the Standing Committee on Appropriations - will vigorously interrogate spending patterns in all spheres of government. I know the Constitution makes provision for three spheres of government, but what we need to know is that 52,5% of the R1,4 trillion that is being appropriated, is appropriated to provinces and municipalities, with 43,5% going to provinces and 9% going to municipalities.
So, we in this House have a responsibility to interrogate very carefully the spending patterns within the provinces and respective municipalities. I say this because, when we read the Auditor-General's report and findings, it's shocking to see that only six or eight municipalities out of a possible 260 received clean audits. That is quite an alarming statistic.
Furthermore, the Fifth Parliament and the committees need to make efficient use of the Parliamentary Budget Office. We do know that it has been established under the Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009. Professor Jahed heads it and he works with some very capable staff who have been employed. We must use the Parliamentary Budget Office - the portfolio committees and the Standing Committee on Appropriations - to get advice at all levels to exercise our right to effect amendments to the Budget. Over the past 20 years, up till now, there haven't been any amendments to the Budget that was tabled by National Treasury in this House.
Moving forward, we need to make sure that we really serve the needs of the people out there. I am not saying this to suggest that the National Treasury is not doing its job, but the 400 members of this Parliament have to have their feet on the ground and be able to use provisions of this Act to make amendments to the Budget.
Other concerns include the issue of procurement, the capacity to deliver at different levels of government, conditional grants and the nonspending of conditional grants. The clauses in this Bill are welcome to the extent that national government will now be able to ring-fence amounts for conditional grants, and will also be able to intervene when provinces and municipalities are not spending.
But, what does sometimes happen is that money is taken away from municipalities that do not spend. This is not fair, because the people in those areas deserve to receive good services. If the cause of the nonspending is mismanagement within the municipality, which results in services not being delivered, then we certainly need to intervene.
Lastly, I do trust that the hon Minister and the National Treasury take seriously the recommendations of the Financial and Fiscal Commission, FFC. We had a very interesting presentation by the FFC and we hope that the hon Minister and the National Treasury take those recommendations seriously.
In conclusion, I want to say that we support the Division of Revenue Bill. I want to wish all my colleagues in this House everything of the best. Unfortunately I can't say, have a restful time with your family, because that's going to be the last thing on our minds for the next two months. Thank you. [Applause.]
House Chairperson ...
Mandiqale ndithethe isiXhosa. [Let me kick off by speaking isiXhosa.]
Firstly, providing statistics without context can be misleading ...
... kuba umngeni apho ukhoyo usekubeni abantu bavele bafune sikholelwe ukuba apha eKapa kwakungekho nendlu phambi kokuba baphathe, nto leyo engekhoyo, kungekho nendlu yangasese. Yintsomi kamlengana ke leyo. (Translation of isiXhosa paragraph follows.)
[... because the challenge is when people want us to believe that in the Western Cape there was not a single house or a single toilet before they came to power, which is not true. That is a myth.]
House Chairperson and hon members, we are gathered here to once more undertake the important task of dividing revenue between the three spheres of government to enable them to provide basic services and discharge their constitutional mandate. This exercise is critical in bringing the means for service delivery close to the people.
We are, however, faced with the challenge of spheres of government that either lack or do not have the capacity to spend the allocated funds. Even those that do spend their budget allocations have a tendency to waste it.
Even more worrisome is the fact that, generally, the provincial governments and municipalities that either waste or fail to spend allocated funds are the ones responsible for providing basic services to the poorest regions of our country. For these reasons, we look upon this Division of Revenue Bill with some trepidation, but to disagree with it just for the sake of disagreeing would be irresponsible. Yet, we have serious reservations about the ability of this division of revenue to result in the same proportion of delivery. There is no point in a division of revenue that is wasted, appropriated for private use or is returned to the national government unspent.
We call on government to develop and implement strategies to ensure that the funding that is spent is for the benefit of the people. The UDM supports the Division of Revenue Bill. [Applause.]
Phambi kokuba ndihlale phantsi, ngemvume yakho, Sihlalo weNdlu, apha bekumana kuphazanywa kuba ooNqaba baninzi, kucingwa ukuba ndingulo uye kwi- DA. Ndiba ngathi hayi ndihleli, babe abantu besithi hay' khona ungulo uhambileyo. Hayi, andihambanga. Kodwa ke omnye umntu ucebise ukuba ndifanele ndiphuze ohloniphekileyo uMnqasela njengophawu olubonisa ukuba ndiya phaya ... (Translation of isiXhosa paragraph follows.)
[Before I take a seat, with your permission, House Chairperson, I want to point out that there was some heckling directed at me here because it was thought that I was the Nqaba who went to join the DA, out of the many Nqabas here. Despite my protestations to the contrary, some people still think that I am that person. Someone advised me to kiss hon Mnqasela as a gesture that I am going to join the DA ...]
... and then I said to him, well, if there was any person that I would kiss, as a symbolic gesture, it would be the hon Tim Harris, but the challenge is that, before I can do that, I would need a step ladder, because he is quite tall. Thank you very much and best wishes for the elections.
Hon members, just leave the kissing for outside the Chamber, please. [Laughter.]
House Chairperson, nationally raised revenue is apportioned between national, provincial and local government in the Division of Revenue Bill, with provinces and municipalities receiving equitable shares as a general allocation and conditional grants to achieve specific outputs. The ACDP supports this Bill.
In the past, however, we have seen National Treasury intervening in a number of provinces to address financial mismanagement that seriously undermined service delivery. Whilst the ACDP fully supports those interventions, particularly in Limpopo, the question arises as to how these provinces were allowed to reach those shocking degrees of mismanagement. We learned, for example, that in Limpopo the 27 forensic investigations have led to more than 300 cases being opened. We also share concerns about municipalities in provinces not being able to fully spend their capital budgets, with local government only spending 84,6% of their infrastructure grants for the 2012-13 financial year.
While we appreciate that National Treasury will continue to build capacity in provinces and municipalities, clearly more needs to be done. Municipalities are meant to generate their own working capital from rates and levies, but require a bigger share of national revenue, namely R90 billion - well up from last year's R83,6 billion. Obviously it is in this sphere where service delivery is affected the most and where we have protests. So, we understand that increase, but financial mismanagement at those levels must similarly be addressed.
In this regard, we would enquire as to what progress is being made to strengthen those internal audits of municipalities. Clearly, we in Parliament need to exercise greater oversight to assist the National Treasury in addressing wasteful, irregular and corrupt expenditure. It is also apparent that long-term remedial action is required across the board to improve financial management and address wayward spending patterns. Although some progress has been made in this regard, there is still a long way for us to go to find the right balance between supporting national departments, provinces and municipalities, while at the same time holding them accountable.
We in the ACDP commend the Minister and national treasury for the initiatives already in place to address the concerns we have already raised and we will support the Division of Revenue Bill.
In conclusion, I would like to state that although I am not a member of the appropriations committee, I have the highest regard for Mr Sogoni and wish him and the members of this committee well. My thanks also to Mr Thaba Mufamadi of the finance committee and the members of the finance committee with whom I have served. It has been an honour to serve with you.
Minister, we wish you everything of the best. I have enjoyed engaging with you, I have enjoyed having you as a captive audience for two hours on the plane during the time around last year's budget. We wish you well. You have indeed been a good and faithful servant of South Africa.
Hon House Chair, comrades, it is a pity that we could not come to this podium today and announce that the appropriations committee has unanimously supported the Division of Revenue Bill. It is one thing to come here and grandstand and pretend to the populace of the Western Cape that you actually do not want to take the budget that is going to be appropriated for them. How do you expect to run the province? How do you expect to subsidise municipalities?
In this 20th year of our democracy, the Division of Revenue Bill is substantially different to when it was first introduced in this House, both in content and in the amounts that provinces will receive in equitable shares and grants to those of municipalities. This can be attributed to the formidable growth seen in the economy prior to 2008 and the prudent fiscal and economic policies implemented by the ANC subsequent to the global financial meltdown of 2008.
Broken down into the most simplistic definition, a budget is an expression of legislation or policy objectives in numerical form.
As we are celebrating two decades of democracy and paying homage to the liberation of our beloved country, we as the ANC reinforce and reemphasise our commitment to democracy. However, beyond that, our commitment is to create a better life for all in a South Africa in which all her citizens can live a dignified, safe and healthy life, free from the clutches of oppression and poverty, one in which every citizen can awake every day in their cities and rural areas to a job and with the knowledge that they will provide education for their children.
At this point, I am reminded of a poem in the late Oliver Tambo's biography, which says:
Because my mouth is wide with laughter And my throat is deep with song, You do not think I suffer After I have held my pain so long? Because my mouth is wide with laughter, You do not hear my inner cry? Because my feet are gay with dancing, You do not know I die?
For too long prior to 1994 the dignity of our people was undermined. In the past 20 years, recognising this, the ANC government has through the allocation of budgets delivered services that gave form to the policy and legislation that we spoke about previously. Amongst others, the following had been achieved since 1994: only 2,6 million social grants were allocated to a select few, but now in 2014 almost 16 million South Africans receive social grants; only 5,5 million households had access to electricity, but now in 2014 more than 41 million people have access to electricity, and approximately 3 million housing units and more than 855 000 serviced sites have been delivered.
In 1994 only 5 million people had access to sanitation, whereas by 2012 11,5 million households had access to toilets. In 1994 there was no free education for the majority of the schools in the country, but now in 2014 more than 80% of the schools are no-fee schools. In 1994 only 10% of families had access to safe water, whereas now in 2014 more than 92% have access to safe water.
In the history of our country there has never been a period where more people have been employed.
We recognise that the budget is a tool of transformation directed, inter alia, at addressing the triple challenge of poverty, unemployment and inequality. The budget is growing significantly each financial year and, consequently, so too are the resources allocated by the Division of Revenue Bill. The Division of Revenue Bill continues to advance the revolutionary gains that we have made over the past 20 years.
Amongst its primary aims, the objectives outlined in the National Development Plan, NDP, are to increase employment and reduce inequality by 2030, which are evident in the provisions of the Bill, thus creating the foundation for this long-term planning objective and the socioeconomic transformation of society. Allocations to give effect to the NDP are welcomed.
Furthermore, equitable share allocations that are to be appropriated to the provinces, and the various direct and indirect grants contained in the Bill, speak directly to the ANC's commitment to build on the progress made and its continued commitment to the creation of more jobs.
The past five years were focused on creating decent work opportunities and sustainable livelihoods for inclusive growth, rural development, land reform and food security, education, health and fighting crime and corruption. This budget continues to give effect to these priorities, and so too this division of revenue.
It cannot be denied that remarkable progress has been made in transforming the lives of millions of South Africans through the utilisation of prudent expenditure of budgets at our disposal. Of course needs currently exceed the demands placed on the fiscus, especially in a society that has been so unjustly skewed by historical institutionalised socioeconomic deprivation of the majority of its citizens.
Besides the social policy and legislative interventions aimed at creating a fair and just society, the ANC's economic plan for transforming the economic landscape in the form of the New Growth Path, the National Infrastructure Plan and the Industrial Policy Action Plan will contribute to expanding economic growth and, in turn, revenue collection by the state. In short, it will result in a better life for all through integrated strategies, plans and larger budget allocations.
We do not claim that we are not faced with challenges in transforming South Africa into a nonracist, nonsexist, democratic and prosperous society. Therefore, in the words of Amilcar Cabral, who said, "Tell no lies, and claim no easy victories", I need to point out certain structural challenges that face us as a government. What has become evident in the implementation of the National Health Insurance pilot projects are the varying degrees to which provinces are appropriating funds to construct and maintain their health infrastructure. This is particularly evident in the backlog in health infrastructure.
With stringent requirements that have been established by the National Health Service pertaining to the quality of infrastructure and the services they deliver, there are challenges inherent in the relationship between the national department and provincial departments in the alignment of budgets appropriated by provincial legislatures to achieve a common national objective. This example will be the same for most departments that have concurrent functions. This is something that we would like the Minister to apply his mind to in an effort to find a solution to this challenge.
In a similar vein, indirect conditional grants that are administered by the national department for implementation in provinces and the municipalities can pose an implementation challenge, as the national government departments are currently structured in a more focused way on policy development and monitoring rather than being structured in a manner to implement and operationalise projects on the ground, such as the sister departments in the provinces. We foresee that at a later stage this may pose an implementation challenge that the Minister may consider resolving.
In conclusion, the allocations made in the 2014-15 Division of Revenue Bill continue to build on the unparalleled advancements made by this government over the past 20 years. These advancements continue to build confidence in those who were previously marginalised to believe that today is indeed better than yesterday and tomorrow will be better than today. Together, we are moving South Africa forward. Thank you. [Applause.]
Thank you, Madam Chair, for this opportunity. Minister, the Budget for 2014 emphasises the need to maintain costs and improve efficiency across all spheres of government. But the reality is that we face a lack of consequences for poor performance and transgressions.
At 59% of departments and 45% of entities the root cause of poor audit outcomes is the lack of consequences. There are no consequences for corruption and maladministration, and municipal managers and managers at provincial level know this. We recommend that the year 2014 be the year of consequences for poor performance and transgressions.
The Standing Committee on Appropriations and the Select Committee on Appropriations have made several recommendations to the National Treasury and the Department of Co-operative Governance and Traditional Affairs with regard to intensifying measures towards realising Operation Clean Audit so that there is value for money. Only when this goal becomes reality will South Africa see the much needed improvement in service delivery levels. This reality, however, seems bleak noting the latest Auditor-General's report. It is quite clear that this report deprives poor people of services and there are no consequences for poor performance and transgressions.
The Auditor-General recently said that the lack of committed leadership lies behind the sharp decline in financial management in municipalities. Total irregular expenditure amounted to R9 billion, while fruitless and wasteful expenditure reached R568 million, more than double that of the previous year. His finding on local government audit outcomes in the 2011- 12 financial year are in conflict with the message that the ANC has been crafting ahead of this year's general elections.
Clean audits have remained at the low level of 5% out of 278 municipalities for the past three years and the overall audit outcomes have regressed, as indicated by the Auditor-General. We therefore note with concern that the constitutional interventions in terms of section 216(2) of the Constitution and 139 (1) (b) and (c) in terms of interventions at provincial level in municipalities to ensure that there is an adequate supply of essential services to residents were not mentioned in the budget.
There is a lack of adequate measures to address dysfunctional municipalities. These have not been announced, and government is vague on the exact consequences for transgressing officials. National Treasury support to municipalities is noted in terms of the S15 Gazette and the setting up of the Office of the Chief Procurement Officer is, I believe, a step in the right direction.
We share the concerns of the Financial and Fiscal Commission with regard to the growing trend of indirect grants. These grants should be coupled with a clear phase-out strategy and capacity-building of undercapacitated provinces and municipalities.
We also note with concern that the FFC was not consulted before many indirect grants were instituted. It is regrettable that the previous provision in the Act, that a portion of the grant must be used to build capacity at this level of government, has now been taken out. I believe that we should look at those aspects.
The division of revenue allocates 43,5% to provinces and 9% to municipalities, that 9% being about R90 billion. Efforts to reduce corruption in provinces and at local government have not yielded results to stop corruption and maladministration. I think that we need to come up with concrete steps with regard to this.
The Auditor-General has conducted numerous forensic investigations into irregularities and financial misconduct in the Public Service. There were 27 forensic investigations in Limpopo, whilst in the Free State, where there is a dysfunctional provincial administration, only 5 officials were suspended. We believe that Treasury ... Thank you. [Time expired.] [Applause.]
Hon Chairperson, the national Budget is, of course, the vehicle we use in order to achieve political goals and at the forefront of this is a better life for all our citizens. We note the increase in allocations to all spheres of government and welcome the benefits this will bring to the poor and the marginalised. The demonic alliance, sorry, I mean the Democratic Alliance ... [Laughter.] ... likes to constantly boast about the good story in the Western Cape. Everyone knows that this is absolute hot air, without any substance, just like the claims made by the hon Ross and hon Steenhuisen, who deliberately lied on national television in order to score cheap political points. Their throats are an open grave. They use their tongues to deceive.
Madam Chair, may I address you on a point of order?
It is a well-known rule that on this podium you do not refer to a member as having lied deliberately.
I didn't hear that.
Ask him to withdraw that, please.
Hon Bhoola, if you actually said that, could you please retract it.
Chairperson, I withdraw it. Their throats are an open grave. They use their tongues to deceive. The venom of asps is under their lips. Perhaps hon Steenhuisen and hon Ross should go and ask their very own leadership, who came begging with a bowl for my membership. [Interjections.] [Laughter.] [Applause.]
You see, the DA wants to transplant people of colour so that they can hoodwink the masses. They tried to hire a black leader, now they want to hire an Indian leader. [Laughter.] [Applause.] I am reminded of the words of Mahatma Gandhi, who said that South Africa ... [Interjections.]
Madam House Chair, may I address you on a point of order? [Interjections.]
Order! I can't hear. Will you all settle down, please. Yes, hon Kalyan.
It would appear that the hon Bhoola is smoking something. [Laughter.] He is misleading the House by saying that the DA came to him with a begging bowl. I have the e-mail to prove that he came to the DA. [Interjections.]
Chair, that is not a point of order. [Interjections.]
Please settle down. Order! Whether he came or you came, I was not there. So I am not saying ... [Interjections.]
He is misleading the House. [Interjections.]
I cannot rule on that because I was not there. Please take your seat. Continue, hon Bhoola.
It was the DA who deliberately tried to divide the MF. I am reminded of the words of Mahatma Gandhi, who said, "South Africans of Indian origin should not bow down to oppression and lose their self- respect." I certainly will not deviate from that course. The DA simply does not understand real transformation. [Interjections.]
Madam House Chair, may I ask, through you, if the member will take a question? [Interjections.]
Hon members, will you please be quiet!
I just want to find out which half he is. [Interjections.]
Hon Bhoola, are you prepared to take a question from the DA?
Madam Chairperson, I certainly will take it. I hope it is not nonsensical. But in true Bengal Tiger style, I maintain that I will and shall not work with dissidents of democracy who advance their own vindictive opportunistic agenda. [Interjections.] Whilst I raise issues, the DA prefers to make a personal attack on me. Why don't they release the land ... [Interjections.] ... so that we can go and build homes for the Indians, the coloureds and the African communities from whom they lobby for votes?
It is quite interesting to note - and why is this? - that DA Members of Parliament and councillors from all ranks throughout the country are running to join the ANC. The focus on planning and performance ... [Interjections.]
Madam House Chair, may I address you on a point of order? Earlier on in the debate, the hon Harris was asked to stick to the topic at hand and a ruling was made by hon Frolick that we are debating the Division of Revenue Bill. So will you please ask the hon Bhoola to do what we are supposed to be doing instead of ranting and raving like a lunatic?
I got your point, please sit down. Hon Bhoola, could you please stick to the topic. You have 32 seconds left.
The focus on planning and performance-based grants set out by this Bill is ... [Interjections.]
On a point of order: Firstly, is it correct that the Deputy Chief Whip of the DA calls the hon member a lunatic? I suggest that that is unparliamentary. Secondly, I would suggest that every frivolous point of order being made by the DA is a waste of time. Could the Chair please be more firm in order to stop those points of order.
To the members of the DA, can whoever said that hon Bhoola is a lunatic, please withdraw that, because it is unparliamentary.
Yes, I said it and I stand by it, but in the interest of the debate I withdraw it.
Thank you. Hon Bhoola, you have thirty seconds left.
The DA is intimidated because they know that I will make the entire ... [Inaudible.] [Interjections.] ... dance on my little finger ... [Interjections.]
Chairperson, on a point of order.
There is a point of order. Hon member, just hold on.
We did not hear the withdrawal by the hon member. We didn't.
Minister Sisulu, she did withdraw the remark, albeit softly, but she did withdraw it.
House Chairperson, the hon Kalyan did not withdraw it.
House Chairperson, she didn't.
She did not withdraw it unconditionally.
I heard her.
She said, "... in the interest of the debate I withdraw it". She did not withdraw it unconditionally.
All right. Hon Bhoola, you have 21 seconds.
House Chairperson, the hon Kalyan did not withdraw it. She said that she stood by her decision. That was not a withdrawal. It can't be conditional. A withdrawal has to be a withdrawal completely without conditions.
Hon Kalyan, can you please just simply say, "I withdraw" it.
I withdraw it.
Thank you. [Applause.]
The MF welcomes the eradication of the bucket system; we must stop treating our people like second class citizens. This is relevant right here in the Western Cape, where the DA thinks that it is humane to give people open toilets. Our citizens deserve more. Treat them like humans with dignity and respect.
The coloured community in the Western Cape continues to be marginalised by this white supremacist party. I thank you. [Time expired.] [Applause.]
Madam Chair, I have never seen the hon Bhoola in any meeting of the appropriations committee and I would like to suggest to him that he reads the reports by the Department of Performance Monitoring and Evaluation as well as Administration so that he can learn what is going on in government and that the Western Cape is the best-run province. [Applause.] [Interjections.]
Let me bring some calm. Today I deliver my maiden farewell speech, because I will never have the opportunity to do so again; so, no interruptions, please. [Interjections.]
Order! I can't hear the speaker.
I am supposed to debate the Division of Revenue Bill, but you have already heard the reasons advanced by my colleague the hon Harris on why the DA will not support the fiscal framework or this Bill. There is therefore no need for me to further dwell on the matter.
Since Tuesday morning very little serious business was in any case discussed in this House. The only matters of concern seem to be what positions members obtained on the party list and who is crossing the floor from which party to which. I could obviously not understand the concerns in this regard as I placed my name on the list and made it very easily to an elected position - that is, by simply putting my name on the pensioners' list.
To those of you who will not make it back to Parliament because you are badly placed on the list, I express my sincere sympathy as you had to go through strenuous processes to get onto the list, only to find out that you are also now on the pensioners' list. My advice to you is to take the direct route next time, like I did. Retiring members should please note that, as retirees, we will only receive pay until the 6th of May, so please do not moan about the fact that your work on election day will be unpaid.
During my time in Parliament I was fortunate enough to accompany the hon Speaker on an overseas trip. I asked the Speaker whether he could perhaps arrange a diplomatic posting for me when I retire. He replied that he has noticed my love for alcohol and females and he would therefore recommend me for a posting in Saudi Arabia. No, thank you, Mr Speaker, any another place will do.
On a more serious note, I am sorry to leave Parliament, because I learnt a lot whilst being here and made good friends across all political divides. [Interjections.]
House Chair, on a point of order.
I served on the appropriations committee for a long time and my thanks go towards Ministers Manuel, Gordhan and ...
One moment, please, hon member.
While I sympathise with the member, who is leaving the House, he is totally out of order. There is an item before the House that is for farewell speeches. Surely he should have negotiated with his party to put him on that list. [Interjections.] We are dealing with a different matter and he is therefore confusing the House. Can members of the DA ... [Interjections.] I ask that you call hon Dianne Kohler-Barnard for misconduct. She is disrespectful to other members. If she does not respect her colleagues, then I demand that she respects me as a member of this House. I will not have her showing those signs to me; I am not her maid. [Applause.]
Thank you, hon Kubayi. Hon members, I must ask you to moderate your language and debate the issue at hand. I also request that all members conduct themselves with the decorum befitting this House. I know that everybody is in a very robust mood, this being the last day of this Fourth Parliament. However, it does not mean that you can misbehave. Hon Swart, you have 37 seconds to finish off.
Madam Chair, may I again thank the chairman of the appropriations committee as well as Ministers Manuel, Gordhan and Deputy Minister Nene, as well as chairperson Sogoni and fellow committee members for their collegiality, as well as the staff for their hard work. I will miss Parliament in general.
I bid you farewell with the words of civil libertarian P J O'Rourke, when he said that giving money and power to government is like giving whiskey and car keys to your teenage boys. Remain vigilant therefore.
Returning members should ensure that their decisions, actions and general behaviour are of such a standard that the public out there maintains their faith in us as politicians and in Parliament as an institution. I thank you and bid you goodbye. [Applause.]
Chairperson, hon Ministers and Deputy Ministers, and Members of Parliament, the division of revenue reflects the progress we have made over the past 20 years as a result of conscientious planning and economic management, informed by the ANC's economic policy and appropriate fiscal and monetary policy.
These financial principles have led to our international recognition as having one of the best managed financial sectors in the world as well as a comprehensive and sophisticated legislative framework for management of the economy and comprehensive regulatory financial management. This financial system is underpinned by, amongst others, the ANC and constitutional imperatives to achieve an inclusive society through an efficient developmental state that builds the capabilities of the society and the economy and, in doing so, robustly intervenes to redress past imbalances.
The ANC's 53rd National Conference in Mangaung in December 2012 resolved to strive for an economic outcome that, amongst others, supports industrialisation, is biased towards job creation and ensures long-term stability, sustainable growth and development. In other words, the conference strengthened the resolve towards the New Growth Path that pursues economic growth through job creation, in line with the ANC's priority to create decent jobs and sustainable livelihoods.
The division of revenue is a financial instrument to ensure that policy programmes are brought into effect through the provision of the necessary financial resources across the three spheres of government. Health, education, social development services, housing and local amenities remain the largest categories of spending. For the 2014 Medium-Term Expenditure Framework, MTEF, period R147,6 billion is allocated through the direct and indirect grants for infrastructure, mainly in education, health, roads and housing. This is a significant increase in indirect grants to allow government to spend on behalf of other spheres of government. The Department of Performance Monitoring and Evaluation as well as Administration is defining performance indicators for each and every area of expenditure to improve and align spending plans with priorities.
I will discuss the areas where we feel a lot has been done and where a good story is to be told. We all know that we have the National Health Insurance, NHI, programme, which is known as universal health care coverage by the World Health Organisation. The purpose of this National Health Insurance programme is basically to meet the health needs of all the people and reduce the financial burdens encountered in health care. It also facilitates the attainment of the agreed millennium development goals, MDGs.
There are already 11 NHI pilot districts in the country to prepare the environment for its implementation. The department reported that there were 872 health facilities in these pilot districts - what a good story to tell, a better life for all. A strong health system, as well as infrastructure, is crucial as a precondition of this. We, as the leading party that consults with the people, have consolidated the grants, after reviewing them.
The national health grant caters for three major areas. These are the following: the health facility revitalisation, for which R3,1 billion has been allocated over the MTEF period; the family health care approach to primary health care, under the NHI, for which R1,2 billion has been allocated over the MTEF period; and the human papillomavirus (HPV) vaccine, a new vaccine for cervical cancer among women, which will be funded for 2014-15 and 2015-16 at R200 million per year, and which will thereafter be incorporated in the provincial equitable share. Planning for the phasing in is very important. In other countries, like Kenya, the vaccine is funded through public-private partnerships.
In education, we have the new occupation specific dispensation grant for therapists in education, amounting to R280 million. It will continue for the next two years, and thereafter it will be phased into the provincial equitable share. The National Student Financial Aid Scheme is very important, as it will lead to better jobs - decent jobs - for the youth of our country. It has spent R18,6 billion over the past five years. An amount of R19,4 billion is allocated for the MTEF period and will assist 500 000 students per year. Money is also set aside for the administration of this fund.
I would also like to address the bucket eradication programme. This has been on the government's agenda, but without any dedicated funding. An amount of R1,9 billion over the next two years has been made available from the Human Settlements development grant for bucket eradication. The regional bulk infrastructure grant and municipal infrastructure grant will fund the bulk infrastructure in terms of decisions taken at several meetings between the Ministers of Human Settlements, of Co-operative Governance and Traditional Affairs and of Water and Environmental Affairs.
The ANC deplores the inhumane and undignified ways used by the DA to address toilet problems in the Western Cape, which is also wasteful expenditure. More dignified ways can be learnt from other provinces. A total of R108 million is also set aside to upgrade the informal settlements.
With regard to security and agricultural grants, the ANC programme of rural development, land reform and agrarian change is based on the provision of social and economic infrastructure, land ownership redistribution, and agrarian support for subsistence farmers to upgrade them to a higher level of the competitive market. The Comprehensive Agricultural Support Programme, Casp, has received increased funding of R209 million for the implementation of the Fetsa Tlala strategy. The intention is to create 300 000 jobs by 2019, utilising the available productive land. Challenges in underspending have been identified and are being addressed in the form of proper training and skills development of all the personnel.
Food security is important for both household use and economic development of the country. Land restoration and success in land claims must be implemented for this programme to succeed. The people of Motlhabatse in Thabazimbi are grateful, hon Nkwinti, for getting their land back and are looking forward to support from Casp to banish famine and land hunger.
We will further strengthen the anticorruption measures to ensure that the division of revenue is strengthened with regard to the quality of spending. The ANC supports the Division of Revenue Bill.
Hon members, hon Harris and hon Ross should learn to consult with their members in the committee, who know that the Financial and Fiscal Commission consults the Minister on each and every part of the division of revenue, on each and every financial matter. It is just that they undermine the members in our committee. Maybe it is because they do not trust them. Maybe it is because the members who serve in the committee will tell the truth about what is happening in the committee. That is why they come here and talk of their dreams, when they are already ruining their dreams about the division of revenue. Keep your dreams to yourselves. You will never rule this country! [Interjections.]
Fix everything that is in the Western Cape. You are so pathetic. You do not even know what to say when you stand here. You take a manifesto that you copied from us. [Interjections.] All of the things in the manifesto, you copied from the ANC. You did not even go to the extent of trying to modify it. What a shame! [Interjections.] You talk of decent jobs. You take the jobs that we supply through the Expanded Public Works Programme, EPWP. [Interjections.] Then you say, "Decent jobs, decent jobs"! You hire poor blacks to march for jobs. You take them from their EPWP jobs! [Interjections.] You take them out and tell them to go and march for better jobs ...
Hon member! Hon member!
... when you are actually referring to the EPWP! [Interjections.] What a shame! The ANC supports the Division of Revenue Bill.
Hon member, your time has expired! Hon members! Order, please. Can we have some order? Before I request the Minister to come to the podium - I ask his indulgence - I wish to make a short statement.