Hon Chairperson, yes, government intends to revise the funding formula for municipalities to implement the differentiated approach. This is part of an overall review of funding for local government that includes a review of the local government equitable share, and various other conditional grants to municipalities.
In the short-term we sought to develop a policy framework for municipal funding differentiation. We had targeted to do that by March this year. This has since been revised to February 2012. In the medium-term we will consult with stakeholders on the proposals for the review of the funding framework for municipalities.
These consultations will culminate in an intergovernmental functional and fiscal summit and, ultimately, a submission which will be considered by Cabinet. This work should be completed by February 2013. In the long-term, the focus will be on the implementation of a differentiated municipal financial management system that will commence in the 2013-14 municipal financial year. I thank you very much.