Thank you, House Chairperson, and thanks to all the members who participated in the debate. Thank you for your support of the Division of Revenue Amendment Bill. As we know, this Bill deals with the in-year adjustments as a consequential piece of legislation to the adjustments appropriation that we passed earlier.
The amendments we are talking about deal with provisions made for higher than budgeted for wage agreements that were concluded in 2011, which most of the members have raised as a concern. We fully share the concern that when the wage bill rises at the rate at which it is doing, crowding out capital expenditure, it is not sustainable.
Some funding, which amounts to R752,2 million and is for the repair of agriculture, housing, roads, education and health infrastructure damaged by floods, also goes to provinces. The concern that was raised by the hon Deputy Minister of Agriculture, Forestry and Fisheries, the hon Mulder, is also noted. However, we want to urge that when these natural disasters strike, we should expedite the process of submitting claims to the department, so that the department is able to respond timeously. It does take a bit of time for us to get a proper costing that will enable us to deal with these issues. It also worries us that if we are still talking about the disaster that happened in 2010 at this time of the year, it is indeed late. However, this is a matter that we are addressing with the relevant structures.
An amount of R1,2 billion for conditional grants that were withheld in 2010- 11 was rolled over where provinces could prove that such funds were committed to specific projects. This is one of our concerns, and members also alluded to it: If there is no proper planning and implementation of programmes, we shall have to withhold those funds. We will only release them once we are satisfied that they will be spent appropriately. There were no adjustments to the local government equitable share, but various revisions were made to local government conditional grants. One of them was to cater for a newly established municipality in the North West after the municipal elections, and also to build in-house capacity and stabilise institutional and governance structures.
The chairperson of the committee, the hon Sogoni, spoke about an Expanded Public Works Programme model in KwaZulu-Natal, which he applauded for having worked exceedingly well. We join the committee in applauding them and hope that other municipalities and provinces will learn from the shining example of the glorious province of KwaZulu-Natal! [Laughter.] Hon Sogoni also emphasised the importance of oversight on this matter, in that the legislature and cabinet of KwaZulu-Natal take this seriously and ensure that the programme succeeds.
On the issue of more funds flowing to local government, which Mr Swart alluded to, we agree. However, at the end of the day, we also know that more funds flow to local government in a number of ways in addition to the equitable share. After all, grants are also part of this "outfit".
The concern about implementation, which hon Ramatlakane always raises on this podium, is also shared. We trust that in working with legislatures, also on oversight, we will ensure that the implementation is done in a cost- effective and efficient manner and we will monitor this.
Hon Singh talked about inefficiencies, which is what our legislation seeks to address. I would imagine that oversight plays an important role in making sure that the inefficiencies are dealt with and that we are able to get value for the money that goes to these levels of government.
Mr Ntapane from the UDM also raised the issue of local government being at the coalface of service delivery. We fully agree with him and that is why we will ensure that once funds are deployed to this sphere of government, they will be monitored so that the desired outcome is achieved.
Mr Snell raised the issue of enhancing monitoring mechanisms, as well as the issue of the centrality of planning and monitoring. We share your sentiment, Comrade Snell, with regard to the governance model of ensuring that the silo approach is dealt with. You will recall that in the committee the Minister also enjoined you to please put together a paper that would serve before us, in order to see how that can be best enhanced. I would also like to refer you to the National Development Plan, which also talks to the issue of recognising the unitary state, even when it comes to governance, in regard to monitoring expenditure.
Hon Mashigo talked about rural municipalities that cannot raise their revenue. This is why we have put in place a differentiated approach to look at the allocation of resources to these municipalities, in order for them to be able to deliver the services required by our people on the ground.
Once again, I would like to take this opportunity to thank members who participated in the debate, as well as the Standing Committee on Appropriations, for having processed this legislation to this point. [Applause.]
Debate concluded.
Bill read a second time.