Thank you, Deputy Speaker. The greatest part of the burden will be carried by our state-owned entities and the development finance institutions. But most importantly, the private sector will have to contribute significantly to the success of this project, both in terms of capacity and, of course, in terms of funding. Private-sector role-players will therefore have to be included not only in the Presidential Infrastructure Summit, but also in the Presidential Infrastructure Co- ordinating Committee. Nonetheless, we all acknowledge that the role of state-owned entities will be vital to the infrastructure project.
This brings the important issue - and I think this is a thorny issue, hon Minister - of administered prices to the fore. The current approach, whereby ordinary citizens pay for the construction of new infrastructure investments in the form of high price increases, la Eskom, is certainly unacceptable. It places pressure on the most vulnerable in our society and does remarkable economic damage to our country. We need to find a new financing solution, where assets pay for themselves over time. Citizens should not be forced to pay for new assets up front but rather later, when utilising these assets. It is just a fact to know that consumers must pay for consumption and not for capital expenditure. That should be the primary departure point.
We need to find partners that can help fund the construction of these projects now, so that we can pay them off over time and public-private partnerships, via our development finance institutions, could co-finance our build plan.
Expecting the state to go it alone now, on the back of massive price and tax increases for ordinary South Africans, is not realistic. If we consider financing infrastructure expenditure through a combination of fiscal allocations, borrower and user fees, the accumulative effect of excessive rises in prices will negatively impact on the economic performance of business and also of industry.
User fees and the principle of "user pays" should be implemented with caution and tariffs should be inflation-related. We need to price infrastructure in a way that makes us competitive and plan our prices better in advance. Hon Minister, South Africa has declined in terms of relative competitiveness and ease of doing business. However, the good news is that if we find the right private-sector partners, with the right know- how and deep enough pockets, especially in funding the construction phases of the infrastructure expansion, we can responsibly finance this project. Then this project will not only aid in modernising our country but also help to reduce poverty, create work and expand employment opportunities to more and more South Africans.
Undeniably the key challenge is in attracting the right partners and striking the right deals to achieve our goals in terms of debt sustainability. I think we have done well so far in our goals. But to do this, we need to invite the private sector to join the Presidential Infrastructure Co-ordinating Commission. [Applause.]