Thank you, hon Chairperson. Hon Minister, and let me join you in welcoming the hon Deputy Minister, other Ministers and Deputy Ministers present here, the leadership of organised labour, some of whom I've seen, the leadership of organised business, some of whom I've also seen, and officials of the Department of Mineral Resources, led by the outgoing director-general, Adv Nogxina, I greet you all. Let me join the Minister upfront in bidding you, Adv Nogxina, farewell and saying that we appreciate the contribution that you have made.
Comrades and fellow South Africans, let me from the outset state that the ANC supports this Budget Vote. There are very good reasons for us to support it. [Interjections.] Just keep quiet!
We are basing our support of this budget on the agreed theme: "Let there be change for the better in the mining industry." This theme is based on the fact that, since the discovery of minerals in this country in the 18th century, citizens of the country who were classified as nonwhites, including black women - and let me emphasise that, including black women - have been prohibited by law from ownership and from occupation of positions of power in this industry. Currently, meaning 17 years into our democracy, not enough progress has been made to change this situation. We will explain why we say that. This is a theme that is more relevant than ever to all stakeholders in the mining industry, particularly in our present-day circumstances.
Once more, hon Chairperson, allow me to dedicate this speech to the thousands of mineworkers who have perished in this industry over many years of mining in this country, and who continue to die. We are particularly concerned, and I am confirming your statement, hon Minister, about the increase in fatalities reported in the first two quarters of this year. This Parliament indeed extends its heartfelt condolences to their families and their loved ones.
Historically South Africa's mineral industry, largely supported by gold, diamond, coal and platinum group metals production, has made an important contribution to our economy. It has provided the impetus for the development of an extensive and efficient physical infrastructure, and has contributed greatly to the establishment of the country's secondary industries. Mining remains South Africa's largest industry in the primary economic sector, followed by agriculture.
Mining continues to be South Africa's principal earner of sought-after foreign exchange, although levels of earning are continuously declining. During the 1990s mining directly generated about 41% of total exports, approximately the same as the fast-growing manufactured goods export sector. From the year 2007 onwards real fixed investment in the mining sector improved by 14,8%. Unfortunately, this improvement was insufficient to compensate for the declines that took place in 2004 and 2005, with the result that production fell by 1,5% in 2006.
We further recognise the fact that, notwithstanding the sometimes jittery mood of the investor community, due to some perceptions of uncertainty regarding our mining policy, these are far from the truth, as confirmed by you, hon Minister. When you analyse our mineral strategy and reflect on our sustainable mining declaration, as agreed to by the Mining Industry Growth, Development and Employment Task Team, MIGDETT, we are continuing to refine government's commitment in both attracting and retaining domestic and foreign direct investments in the mining industry. This is more than clarified. The portfolio committee will continue playing its expected role in addressing both the genuine concerns and the perceptions of the investor community.
The mining industry continues, among others, to lead job creation in various sectors. We are of the firm view that this industry, through its leadership in MIGDETT and the guidance from the Ministry, will respond positively to the clarion call made by His Excellency President Jacob Zuma in his state of the nation address early in this year, 2011, that this year should be approached as the year of job creation.
The New Growth Path gives clear direction on how and where the mining industry should play its pivotal role in addressing this national objective. This is more urgent now than ever before, given the fact that the country is faced with an unemployment level currently at a staggering 25%, as reported by Statistics South Africa in its report on the first quarter of 2011. In this regard we acknowledge and applaud the role played by MIGDETT, a multistakeholder team that was established in 2008 as a direct response to and an attempt to mitigate the negative impact that would result from the global financial crisis.
Indeed, these efforts have been successful in reducing the potentially high numbers of job losses in the mining sector, in that we have seen that instead of the approximately 100 000 jobs that could have been lost at that time, only plus-minus 35 000 jobs were shed. This figure is still high when one considers the number of dependants of these mineworkers. However, this intervention demonstrates the correctness of our general theme in the ANC: "Working together, we can do more."
It is important for us - I want the opposition to pay particular attention to this section of my speech - to remind this august House that the people of this country from all walks of life converged at Kliptown in 1955, but not for political grandstanding and not to pretend to identify with the poor people of this country, as we have seen in the gimmicks and political posturing of the DA in these recent local government elections. [Applause.] In this real Congress of the People, we, the people of this country, declared that: "The people shall share in the country's wealth!" I will expand on this point later in this input.
We would further like to remind you, and refresh the memories of the people of this country, lest we forget, that the people's liberation movement, the ANC, in its watershed Morogoro Conference in 1969 adopted a strategy and tactics document. This document defined in clear terms the character of the national democratic revolution. I can see the hairsplitting! I repeat that it defined in clear terms the character of the national democratic revolution in relation to the apartheid sociopolitical relations that this democracy was meant to eliminate.
Before our colleagues on the left benches get terrified by this big term "national democratic revolution", NDR, and before they invoke the rooi gevaar [red danger] and the swart gevaar [black danger], let us define this term - as part of a political education that is free. The definition is: the NDR is a process of struggle that seeks to transfer power to the people and transform society into a nonracial, nonsexist and united democratic society.
Among other measures used, we will attain this noble goal through pursuing economic growth, development and redistribution so as to achieve a better life for all. These ideals remain as relevant today as they were before, and they inform our intervention in the mining industry. [Interjections.]