Chairperson, I suspect that the most fascinating subject relating to this department is the question of the nationalisation of mines. This is a complex and fascinating debate that can be approached from different angles. Those learned in economics may argue from an economic standpoint, whilst those politically and historically inclined may approach it from their predisposed inclination. Of course, the department and government have said that nationalisation is neither the government's policy nor that of the ANC. But I am of the opinion that there is so much to be pondered on in these issues that forums must be created in which people can give their viewpoints.
I am no expert on the study of where and when the nationalisation of mines has worked or not worked, and what the prevailing circumstances were in any of the cases. I am, however, a witness to the fact that while we are said to be a major contributor globally to the minerals sector, that has not translated into a better quality of life for many of our people. We have seen communities close to where most of the mining occurs that are subject to abject poverty, and that can never be right. It is not right that people work in mines all their lives only to retire poverty-stricken! It is not right that there are communities and provinces where the mines make billions of rand, but the people still cannot afford tertiary education for their children, thereby continuing the cycle of poverty. Whether this means we must consider nationalisation or not is a question that needs an informed answer. I do assert, however, that the department has a responsibility to manage the status quo and ensure that we do not remain where we are.
The issue of adding value to South Africa's minerals before they are exported has been debated for a number of years. This debate is based on the argument that the South African beneficiation of gold currently affects only about 2% of current mine production, and that the country is not exploiting any comparative advantages of its large natural resource base. But the perception of South Africa's having a comparative advantage owing to the location of its mining industry does not in itself render the country competitive in terms of its downstream industries.
Monopoly in pricing is but one of the problems facing the South African mining sector, with more propaganda being spread instead of the true facts, thereby misleading debates. This must be rectified. The UCDP supports the budget. Thank you. [Applause.]