Chairperson, Cope welcomes the reduction in expenditure ceilings by R25 billion this year. There must be no relaxation on this score. It is time to exert optimal fiscal discipline, and we are happy that R65 billion has been set aside as a contingency fund. While organised labour is agitating against this, the Minister must hold firm. Half of South Africa has experienced the serious drought and money needs to be available for unforeseen expenditure and emergencies.
We accept that local government must have funds to address the spatial transformation of our cities, consistent with our Constitution. We, however, insist that the Municipal Finance Management Act is strictly applied and no deviations are allowed. The tender processes must be fully transparent and whistle-blowing must be encouraged. The Office of the Auditor-General has for many years pleaded for serious consequences for officials in municipalities who ignore the strictures of the Municipal Finance Management Act and those ignoring the Public Finance Management Act.
There has been no political will to deal decisively with transgressors. Now Standard & Poor's has given our government two years to mend the economy and enforce the strictest financial controls. There is no time to lose; otherwise we will be where Greece and Venezuela are today. This is really the last warning and chance for our government.
On the issue of funding the creation of viable and dynamic economic hubs in all our urban townships, large as well as small, we agree. Indeed, we want to see investments being made where people live so that that is also where they can find work.
Another issue we want to take up is that of improving forward planning and the efficiency of spending. Why do we always speak through the mouth of government about this, yet do nothing about it?
Finally, the allocation of R1,1 billion over the Medium-Term Expenditure Framework period for improving broadband is also a small start. South Africa needs cheaper and faster broadband. At present, as the Institute of Race Relations has recently shown, broadband is 10 times more expensive in our country, but much slower than in the United Kingdom. We need to correct this speedily and therefore set aside a bigger budget. The speed of our economic growth will be in direct proportion to the speed and affordability of broadband. I thank you.