Hon Chairperson, hon Ministers and Deputy Ministers, hon members and guests, 17 years ago we showed the world that we could unite around a common cause: a democratic, nonracial, nonsexist South Africa. We showed ourselves and the world that we could compete politically and find a shared understanding on a matter of common concern to all of us, namely building a better South Africa for our children and grandchildren. Now, we must use this remarkable national capability energetically and urgently to address the problems of jobs, growth and poverty.
The Division of Revenue Act lays down how the total government revenue should be divided and allocated among the spheres of government and within government.
Local government is represented on the Budget Council, where the Minister of Finance discusses the proposed budget with provincial and local government. The impact of the Budget is felt at the local level, where poverty, unemployment and inequality are found. That is where sustainable development is the key.
We all know what development is. It is defined by the World Conservation Strategy as follows: "development - interpreted as economic growth with desirable improvements in social conditions can be sustained if it takes into account social and ecological as well as economic factors." The World Commission on Environment and Development also defines sustainable development, referring to it as development that "meets the needs of the present without compromising the ability of the future generations to meet their own needs". The South African definition of sustainable development, according to the National Environmental Management Act, includes and stresses, "to ensure that development serves present and future generations". The budget should address the present in order to address the future of the next generation with regard to health, education, unemployment, inequality and human settlement.
The focus of this debate will be on local government and development. Sections 152(c) and 153(a) of the Constitution state that local government must promote "social and economic development", and "structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community ..."
Here we are talking about local economic development, LED, which has the following objectives: the creation of employment opportunities for local residents and the encouragement of small, medium and micro enterprises; the alleviation of poverty and equal redistribution of resources and opportunities to all residents; alignment with the country's macroeconomic strategy, which is focused on global markets and international investments; the creation of local LED units in the municipalities to empower, advise and support all economic initiatives and communities as a whole; the promotion of partnerships with relevant stakeholders; and self-reliance and sustainable development. All of this tells us that we need capacity, as well as social and physical infrastructure, to achieve these objectives.
One of the aims of the Local Government: Municipal Systems Act is to provide for core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of the local economies. Larger municipalities have the capacity to borrow against their income to assist in achieving this aim of the Act.
However, smaller municipalities are unable to do this and therefore rely on grants. How, then, can the smaller municipalities plan for their future sustainability needs when their budgets and capacities struggle to meet their current needs? Let us think of those municipalities that can hardly raise their own revenue, especially those in the rural areas. How do we, as a unitary developmental state, ensure that the priorities of government are planned for and implemented in these municipalities?
Regarding public-private partnerships, PPPs, the financing, provision and maintenance of infrastructure are, in most cases, seen as the responsibility of government. The question is whether government, with its limited resources, can manage on its own to meet the whole nation's needs. The involvement of the public and private sectors will benefit both, as well as civil society and the economy.
PPPs are based on the concept of sharing risk. They pursue common objectives and different partners provide complementary resources, contributing to programme design. However, it provides the illusion that funds are readily available for infrastructure repair, improvement and construction at little or no cost. This is not the reality. Investors ask for returns through user fees or future taxes.
On the government's side, PPPs are used at all levels in co-ordination with key national legislation, such as the Public Finance Management Act, the PFMA, and the Local Government: Municipal Finance Management Act. At the same time, municipalities are as important for successful PPPs as the national government is for the success of service delivery.
Public entities must start doing roadshows. They should be known and accessible to the communities. These are developmental institutions and they have their role to play in changing the lives of the people for the better. Their impact should be felt and seen in the communities and they are well resourced to effect this.
Regarding annual performance plans, these must be linked to the municipal ward codes. This will enable links to the integrated development plans, IDPs, and assist the vertical planning from national, provincial and local governments. This will also assist us as public representatives when we do our oversight, because we will know where the projects are and what the community's involvement is, because the plans in the area will be known to them. That will facilitate our oversight and enable us to do our oversight work better because we will know where the gaps are in the communities.
Provinces and municipalities continue to play an important role in accelerating growth and job creation. Taking into account the challenges, it will be exceedingly important in the period ahead to take strong action in pursuit of efficiency and better-targeted expenditure. Turning an economy around and achieving the kind of transformation required to draw the millions of unemployed people into the economy is not an easy task. We must be honest with our people about that.
This Division of Revenue Amendment Bill addresses government priorities. We must have the courage to make difficult choices about investment priorities, industrial policy options, spending priorities, technology alternatives and trade strategies. Expenditure priorities of provinces and municipalities need to focus on more efficient and effective service delivery, protecting the poor and creating employment.
None of us can rest or sleep peacefully until every South African can say, "I can see a better future. I can find a job. I can learn a skill." Our people need hope. Our people want the ANC government to lead. We will lead. The ANC supports this Bill.
The bickering on this side must stop. The only thing you must do is to be gender-sensitive. Go and ask yourselves why you always believe in being, as leaders, surrounded by men. You have Helen Zille surrounded by men. [Applause.] [Interjections.] You have your current Leader of the Opposition ...