Chair, the purpose of this Bill is to provide for both the additional and interim funding requirements with regard to the departments in question. The Minister of Finance, in terms of section 30 of the PFMA, may table this adjustment budget in the National Assembly as and when it is necessary. This adjustment, therefore, has been awarded special status because the allocation cannot be delayed until October 2007.
The affected state-owned enterprises are confronted with unprecedented financial pressures and, as a consequence, an early adjustment is required. The amount of R1,9 billion requested with regard to the 2010 Fifa World Cup stadium development conditional grant is provided for in the Division of Revenue Act of 2007. This is not a new allocation; rather, as mentioned, it seeks to fast-track the funding requirement flow for the upfront procurement of input materials for stadiums such as roofs, structural steel and site development, in order to minimise the cost owing to inflation and exchange rate volatility.
Tight deadlines have been set for the completion of stadiums. Therefore, it was necessary to bring forward R1,9 billion from the 2008-09 budget to ensure that construction was not constrained by cash flow shortages. Members, all this means, therefore, is that construction for the 2010 stadiums by host cities is well ahead of schedule.
In addition, stadiums such as Ellis Park, the Royal Bafokeng Stadium and Loftus Versveld, should be renovated and ready for the Confederation Cup in September 2009. The early allocation, therefore, for the construction of soccer stadiums in terms of this Special Adjustments Appropriation Bill will ensure that affordable facilities are constructed in accordance with Fifa standards.
South Africa is convinced more than ever before that it will host a world- class Fifa World Cup in 2010 here in South Africa for all the people of this continent. There is no turning back, for we believe that the stakes are too high and our people cannot be disappointed, at least not by the ANC government as a trusted servant of the people.
Now, let me turn to the R700 million allocation agreed to by Cabinet to recapitalise the Land Bank, subject to conditions in respect of its executive mandate and provision of a turnaround strategy. Members are aware that agriculture is the backbone of this country in terms of making sure that it addresses poverty alleviation, hunger and, most importantly, food security for our nation.
It is also important to address the thorny issue of access to land for the majority of our people. In this regard, we have been assured by the management of the Land Bank that all of the R700 million requested will go towards development, amongst other things, to address this issue. It is also important to immediately address the issue of the deteriorating position of the bank, which has resulted from the writing off of large sums of money owing to nonperforming loans.
It is worth noting, however, that of the R15 billion written off over the past six to seven years, 95% of that was for white commercial farmers. We do understand that the farming business is very complicated and has many challenges. Some of these are beyond the control of the bank and the farming communities themselves - issues like droughts and floods. We therefore felt that this was a reasonable request in the short to medium term to address the challenges mentioned above.
On the issue of Sentech, the committee was unanimous about the allocation of R500 million to position Sentech as the wireless broadband wholesale provider and infrastructure developer. We are of the view that this is a highly competitive environment and requires highly skilled personnel. Therefore this allocation, we believe, will go a long way towards helping Sentech to retain and attract new skills.
On many occasions government entities or state-owned enterprises have been accused of having a shortage of skills, which hampers service delivery. We believe that this allocation seeks to address this question. Sentech is expected to address the issue of network coverage which will cover the rest of the country and, in particular, the underdeveloped areas of our country. For instance, you can tune in to SAfm from anywhere in the country and it will be predominantly white in nature.
The question therefore is: When will Sentech extend the coverage network enjoyed by SAfm to other radio stations such as Ukhozi and Umhlobowenene, to mention but a few? This is a critical issue which Sentech, through the Department of Communications, must address honestly because it talks to the issue of transformation.
We cannot, in this day and age, still speak about the underdeveloped areas in which people cannot access the services of this department. Therefore I take this opportunity to ask the Portfolio Committee on Communications, particularly comrades serving in that committee, to make sure that this issue is addressed as one of utmost importance, because in this day and age we cannot stand tall and say why this has not happened 13 years after our democracy.
The ANC therefore appeals to the National Assembly, because even though there were questions on some of the issues, as I have mentioned, most of the issues we were unanimous about, that this Bill must be passed. The ANC supports this Bill, and I thank you. [Applause.]