Chairperson, hon members, the Division of Revenue Bill provides the first step in the process of service delivery, and by tabling this Bill the Minister complies with the Constitution of the Republic.
It is essential that a large proportion of the revenue should be channelled towards the provinces and municipalities in particular, as these two tiers of government are, by virtue of their proximity, supposedly better placed to deliver services. In addition, a large number of our municipalities, especially in rural areas, have a limited revenue-raising capacity and yet they provide a number of basic services free of charge. In this regard, we are pleased to see that transfers to the local government level have grown significantly over the years.
However, we wish to draw your attention to a few problematic aspects of the division of revenue. The first aspect is the failure of the provincial and local government spheres to spend the additional funding in such a way that it reaches the intended beneficiaries. The second aspect is the inadequacy of funding in instances where it does reach the intended beneficiaries.
I am fully cognisant of the fact that none of us in this House is in a position to give answers to these problematic aspects I have just raised. However, as my colleagues who were on this podium before me have alluded, the fact remains that we have no guarantee that this division of revenue is going to improve the lives of the intended beneficiaries.
This undesirable state of affairs has its roots in the lack of capacity and managerial skills at provincial and local government levels, coupled with the endless infighting in some municipalities. Furthermore, co-ordination and policy integration among the various levels of government is virtually nonexistent. This convoluted bureaucracy between the national level and the coalface of delivery has various leaks, backlogs and linkages that divert resources away from the intended beneficiaries.
Violent protests across the country concerning the failures in basic service delivery sufficiently make this the truth. We have to overhaul bureaucracies, unlock the backlogs and fix the leaks that prevent resources from translating into service delivery and value for money for the taxpayers. The UDM supports the Bill. I thank you.