House Chair, to quote the Minister, our problem is simple, "we are spending more than we earn". South Africa is moving closer to reaching the fiscal cliff and we are in a dire situation. Our civil service remuneration, social assistance expenditure and the interest on government debt as a percentage of government tax revenue, has increased from 55%, 10 years ago, to more than 72% in 2019.
The government wage bill must be addressed; but how? Contain all inclusive government remuneration adjustments to the rate of inflation. In 2018-19, the average wage increase for officials was 6,8% - 2,2% higher than inflation.
In the private sector, the average annual salary is R250 000 and in the public sector it is more than R400 000. The other big problem is the looted, mismanaged state-owned entities, requiring multibillion rand bailout all the time.
Afrikaans:
Die enigste manier om die fiskus te red is om hierdie staatsuitgawes te beperk en staatskuld uit te wis, en dan staatsinkomste te verhoog.
Maar die probleem is, hoe doen ons dit? Ons kan dit slegs doen as die politieke wil daar is om die werklike besluite te neem om die uitgawes te beperk, en om die inkomste te verhoog.
Die enigste manier om ons inkomste te verhoog is om 'n gunstige omgewing te skep vir die vrye mark. Maar alles wat die ANC doen is tot die teendeel. Alles wat die ANC doen maak dit moeiliker om besigheid te doen in Suid- Afrika, en maak dit moeiliker om werk te skep. Op die ou einde van die dag verloor ons belastinginkomste.
English:
Who dictates to government what to do and what not to do? It is the alliance partners that are telling the government not to do what is necessary to contain the public service wage bill. It is your alliance partners who are preventing you from doing what is necessary and what I am sure the Minister wants to do with most of the state-owned entities. We are going to get closer to the fiscal cliff and face the fiscal cliff if you keep on listening to the alliance partners.
The failed ideology of the ANC is also to blame. We will have to wake up and really do what is necessary to save the economy. We need economic growth. But to get economic growth, we need the private sector. We need free market principles and we need to contain costs.
The cost containment measures announced by the Minister are a drop in the ocean and it is too late. It is because of the ruling party, who for many years just assumed that there will be money left in the fiscus. They just assumed that they can buy expensive cars. It is unfortunate that the hon Jackson Mthembu is not here, per usual he is not here, but in 1997 he said:
"I am a leader in my community, why is it wrong for me to buy a BMW with my provincial department's money of R2,3 million".
For 25 years, that attitude has cost this country greatly. It's that attitude of just spending the people's money and not doing what is necessary that has gotten us into this problem. I thank you. [Applause.]