Mr Chairman, the appropriation for 2009-10 in general terms has received a positive reaction from economists and politicians alike. Of course, there are various items that one can criticise and some which we would have definitely done differently, but then one must remember that the Budget is a balancing act.
Each item of expenditure that we would like to increase must lead to a corresponding lowering of expenditure on other items, for instance, such as more police officers on the beat against fewer teachers in the classrooms; that is the choice that you basically have.
We fully concur with the Minister that you cannot solve problems by just throwing money at them. This is particularly applicable to education and specifically the Road Accident Fund.
The IFP is very concerned about the R1,6 billion bail-out for SAA, which is meant to support its turnaround strategy. Questions should be asked as to whether the South African taxpayers are now subsidising SAA and particularly the low-cost airline, Mango. When will the bail-outs to SAA stop and who's to say that they won't be back in a year or two asking for more money? This trend cannot continue.
Last year the Minister sneaked in the fossil energy levy, which in the end translated into an additional heavy load on the consumers of electricity and fuel. Now he has done the same with the fuel levy of 42 cents, which, together with the purported increase of 60 cents in the petrol price next month, would mean an increase of more than R1 in the price of petrol.
This may have serious effects on the inflation spiral and we all know that once you increase the price, the inflation goes up and if the price comes down, the inflation does not come down accordingly.
The hon Minister last year denied that South Africa is gradually working towards a global or basic income grant (BIG), which the IFP had requested, but if you look at the children's grant being extended to 18 and the lowering of the age requirement for male old-age pensioners, together with the increase in the EPWP and other social programmes, the tendency of gradually phasing in something like a BIG is confirmed.
The hon Minister of Finance has delivered a very good Budget and after many years this year was probably his most difficult task in view of the global financial meltdown and the effect that it is having on South Africa. With the substantial drop in income due to lower recovery from corporate taxes and VAT contributions, together with the demand for greater social expenditure, he nevertheless achieved a miracle by only increasing the budget deficit to 3,8%.
Now I want to be nice and pay tribute to this hon Minister, but before you think I am getting soft, let me assure you that this is not my farewell speech - hopefully not. But I don't know when the Minister may decide to go. I have walked a long road with this hon Minister Manuel, even before the new dispensation in 1994.
We served together in the Transitional Economic Council with the then Minister Derek Keys, Dr Zach de Beer and Professor Tshabalala. The Transitional Economic Council took over the functions of the Departments of Finance, Trade and Industry and Public Enterprises. How well I remember the relatively young activist and unionist from the UDF, Trevor Manuel, as the ministerial representative of the ANC, uncertain and maybe a little bit unpolished but the fastest learner I have ever come across. That is a real compliment, Mr Minister. [Applause.]
Remember that after 1994, when as Minister of Trade and Industry he was promoted to replace Chris Liebenberg as Minister of Finance, the shock to the financial sector was great. The prospect that this unionist and possible Communist would take over the reigns of Finance and Treasury almost backfired and you could see it in the markets; the stock exchange, the value of the rand, everything collapsed for a little while.
How ironic that today it is exactly the opposite scenario in that the markets fear the day that Trevor Manuel departs from the South African financial scene. This is testament to the outstanding job this hon Minister has done during his time in office. [Applause.] Under his guidance, the National Treasury and institutions such as Sars have improved drastically and served the people of South Africa with distinction.
We salute you for that, Minister, and we support the Budget. Thank you very much. [Applause.]