Chairperson, Minister, Deputy Minister, and colleagues, the aim of the Department of Energy is to formulate overall energy policy and to oversee its implementation to ensure access to affordable and reliable energy for all South Africans.
An affordable and reliable energy supply is crucial for our country's development. It impacts upon the ability to alleviate poverty, create jobs and improve the quality of life for all South Africans.
We have all witnessed the negative impact that increases in fuel and electricity prices have. An increase in the fuel price, for example, is felt by every South African, as it leads to price increases in transport, food and other essentials. Job creation, economic development and, ultimately, the elimination of poverty are all affected by issues of energy.
The work of the Department of Energy is therefore very important to all South Africans. The high crude oil price, which is currently hovering around US$110 per barrel - today it was around US$114 - and now the weaker rand, is putting pressure on many sectors of the economy and also on the lives of the ordinary South African.
We realise that this price is influenced by outside forces beyond our control. Considering the dire consequences that these price increases have, it is important for the department to find ways of minimising the effects thereof. We need to look at a new pricing formula for fuel and also provide some form of support and relief for the poorest members of our country, who once again bear the brunt for these increases.
Many of the poor, and especially those who live in rural areas, are still reliant on illuminating paraffin for their energy needs. High fuel prices will have an even harsher impact on them. During the Liquid Fuel Charter public hearings, it was found that the Petroleum Products Act was impeding the transformation of historically disadvantaged individuals.
With regards to electricity, the IFP is concerned about Eskom's ability to meet the country's electricity demands. The quest for development and economic growth has meant that demand for electricity has outstripped supply. This has contributed to load-shedding and blackouts, which we have all experienced.
In addition to this, there are still backlogs in the supply of electricity to households, especially in the rural areas. Eskom is faced with an uphill battle in its bid to ensure that South Africans enjoy a reliable and affordable energy supply.
While coal will be the primary electricity source for many years, it will not last forever, and it is not environmentally friendly. Our energy mix needs to be diversified and expanded, and clean coal technology must be implemented to minimise the impact that coal has on the environment. Cleaner and renewable energy, such as solar, wind and hydro must be incorporated into our energy mix on a larger scale, as should nuclear. Despite the many misconceptions and negativity that surround nuclear energy, there is still a place in our energy mix for nuclear.
We need to look closely at the unfortunate disaster in Japan, bearing in mind that it was a natural disaster. We need to educate the South African population on nuclear energy and its challenges, for example, high waste disposal and high cost, as we all know that nuclear is clean energy.
We also believe that more attention and resources should be given to the expansion of natural gas as an energy source. We thank the Department of Energy for influencing the price of gas to households.
The department has a difficult job to do in a very turbulent environment, and some good work has been done. However, there are still many areas where improvements must be made. The IFP would also like some clarity on why the cost of the multiproduct pipeline, which is under construction, is much higher than it was budgeted for. The Minister has said that in the next 50 years, we may benefit from it. The IFP supports the Budget Vote. I thank you. [Applause.]