Hon Chairperson of the NCOP, hon Minister of Finance, hon MECs, hon members of this House, distinguished guests, fellow comrades, I bring you all revolutionary greetings from the platinum province. It is my privilege and honour to be afforded this opportunity to take part in today's debate on the fiscal framework as tabled by the Minister of Finance on 23 February 2011.
As a province we remain fully supportive of the countercyclical fiscal stance adopted by our government two years ago. The countercyclical model provides a framework that seeks to save additional resources during good times for spending during difficult periods. Had it not been for the stance taken by our government, one wonders what would have happened during the economic recession of the past two years.
This is due to the sound financial management in the six years of strong economic growth; a strong foundation that saw South Africa managing to sail through the rough seas during the economic recession without huge casualties, as happened in other countries. We remain resolute and committed that 2011 is the year to pull out all the stops in our endeavours to create jobs. We wish to commend the Minister, Cabinet and the National Treasury team for their hard work and for making it possible once more for South Africa to be declared number one in an open and transparent budget process, overtaking even the developed countries that are regarded as old democracies.
During his state of the nation address, President Zuma declared this year "the year of job creation" and said this was a task that required the involvement of all and sundry. He directed that all spheres of government focus their resources, energy, skills and plans towards the attainment of this noble vision. Indeed, the creation of jobs cannot be the task of government alone - the private sector is also expected to play its part. Let us remember that having a job gives one dignity and allows for the fulfilment of one's worth.
As we engage further in today's debate, we should be mindful of the reality that economic growth that is inclusive is a prerequisite for reducing poverty, creating employment and improving livelihoods. The people of the North West province have hope that the direction taken by our government, as tabled in the national Budget, will change lives and have maximum impact on their lives. But it is also vital that we make our people understand that our country is not a welfare state. On this I agree with the President. They must participate in their own liberation from economic exclusion. Let us make them understand that government cannot do everything for them and they must actively help government to lift them out of poverty.
At the time of tabling the national Budget, the Minister indicated that the Budget provided benefits to the poor workers, business sector, small businesses, women and the youth. Our province, in response to the direction given by the President, took advantage of the space created and focused all resources on the priorities of government, with job creation receiving much more attention than ever before. The provincial treasury will continue to monitor the expenditure of various departments in line with the national priorities, in particular spending on infrastructure and conditional grants, which has been a challenge.
During the presentation of the national Budget, Minister Pravin Gordhan indicated the following:
We have taken on the challenge that the legacy of apartheid left us - a legacy of disempowerment, landlessness ...
I hope the DA is listening -
... inequality of opportunity, and millions of unemployed young people who cannot see a realistic prospect for a decent life.
He continued:
... now is the time to do extraordinary things, in dealing with our particular development circumstances. It requires new ideas and bold efforts from all: government, business, labour, communities and every family.
With regard to the economic outlook, the New Growth Path implores us to focus on key drivers such as continuing and broadening public investment in infrastructure; targeting more labour-absorbing initiatives in the agricultural and mining value chains; manufacturing, construction and services; promoting innovation through green economy initiatives; and supporting rural development and regional integration.
This New Growth Path has to unfold in an environment where the price of Brent crude oil has appreciated beyond the US$105 mark due to political instability in the Middle East. The high oil price impacts negatively on the consumer, because when the petrol price increases it has a multiplier effect on the increase of the price of transport, food and other commodities. The price increase poses a risk to inflation and the cost of living.
We support the Minister in his commitment to putting in place the measures that will ensure that banking charges are fairly set, transparent and do not create undue hardships for the poor. South Africans are among the few consumers across the globe who are charged high fees by banks for doing business with them.
With regard to the budget framework, public finances cannot address all the challenges and backlogs that are part of our lives and history as South Africans. To this end we have taken a conscious decision, as a province, to strengthen our working relationships with the private sector, communities, labour and traditional leaders as we continue to change the lives of our people.
As a province we do not have the potential, hon Minister, to create sufficient own revenue that can augment the equitable share allocated by national government. In this context, we face the serious challenge of a shortage of water in the province, and this requires huge investment in infrastructure. We call on your intervention to assist in this regard. We have not borrowed funds for any project for this financial year, but when the time comes to borrow funds we will do so responsibly in order not to burden future generations and also to ensure that we deliver quality services with these borrowed funds. The province has adopted a "no plan, no budget, use it or lose it!" principle, to address underspending and improve spending on core priorities. On 2 March 2011, the executive council approved a budget cut of 0,3% across all provincial Votes, except the Vote of the provincial legislature. The process made available R380 million to be reprioritised to address areas of pressure. Since the recession, we have been reprioritising spending to redirect funds from noncore items to core priorities of government. We welcome the review of the provincial equitable share and also support the fact that the Budget Council endorsed the new formula for health and the change of weight for health, education and basic components, based on surveys conducted nationally. The effect on our province is that the equitable share has been revised from 6,7% to 6,8% over the medium term.
We managed to increase our own revenue from R625 million to R652 million for the 2011-12 financial year. As a provincial government we are determined to reclaim the fifth casino licence, which will contribute positively to our own revenue enhancement. We will strengthen the entities and mechanisms that enhance revenue collection over the medium term. Discussions are unfolding with the North West Gambling Board to that effect.
Our intention is to pull together resources from various sources and invest in infrastructure projects that will impact maximally on the huge challenges that we experience as a province, like roads and water, over the Medium-Term Expenditure Framework, MTEF, period. As a province we are also expected to create labour-intensive jobs in the next financial year by employing more women, youth and people with disabilities.
Regarding job creation, we critically analysed our budget and concluded that over the medium term the funds that are available for job creation amount to R16 billion. Therefore, for this coming financial year, R5,3 billion will be available across provincial departments in exclusion of the local government sphere. The North West province supports the fiscal framework. Thank you, hon Chair. [Time expired.] [Applause.]