Madam Deputy Speaker, and hon members, the APC fully supports the five principles that guided the framing of this Budget, especially protecting the poor and the need to maintain a sustainable debt level so that our actions today do not constrain our development tomorrow.
The APC is happy that the instrument of a budget deficit is used sparingly and cautiously. However, the APC is concerned that the Budget does not mark the anticipated radical departure from established spending patterns.
Government had an opportunity to radically intervene in rural economic development, but the APC views the expenditure of R1,8 billion on this item, over three years, as being very cautious taking into account the scale of the challenge.
The personal income tax relief for individuals is however nullified by an increase in consumer taxes. The APC is specifically concerned about the Road Accident Fund levy. The APC believes that other options could have been considered to bolster the fund's financial position rather than increasing the RAF levy. For example, government could have considered putting a cap on payable claims, ensuring that the fund benefits, first and foremost, South Africans and that claims by foreigners should be made in local currency.
This, we believe, could have avoided an increase or we could have had a lower increase. The Minister could also have given Parliament more details, that is, on the current standing of the fund and how much is hoped to be raised in order to sustain the RAF as a going concern.
Whilst the APC is not averse to the postponement of the implementation of the Mineral and Petroleum Royalty Act of 2008, hope that the approximate R 1,8 billion tax saving will lead to a constructive dialogue to save jobs should not have been the basis of decision-making.
Government should have asked for firm commitments first, otherwise we may see workers retrenched while the tax savings go into the pockets of the greedy. It is the contention of the APC that in the struggle to save jobs, government is lacking in equal and enthusiastic partners from private capital.
The APC strongly feels that we need to look beyond the figures and ask what impact there is on the quality of life of our people; that in these difficult financial and economic times for our country and the world, those tasked with looking after and using public funds do so guided by the need to have value for money, fight wastage, embezzlement, fraud, theft and corruption, which are said to be on the increase according to a recent study by the Public Service Commission. It is incumbent on Parliament, in discharging its oversight role, to ensure that the money so allocated is used for what it is budgeted for.
Finally, the APC is of the view that the world economic crisis highlights one objective truism that business decisions should above all make social sense. We must raise our collective voice against the greed, corruption and cronyism of a few that is now wreaking havoc all over the world. I thank you. [Applause.]