Chairperson, I'm just asking that the hon Ellis listen very closely so that I won't have to repeat my three minutes of speech.
We had a lengthy debate earlier this week about the fiscal framework where it concerns - and the ACDP expressed concerns about this - the budget deficits and ballooning government debt levels. Now as we deal with this Bill today, it is interesting that the Financial and Fiscal Commission warned that the fiscal situation in South Africa is very weak, especially regarding provincial and local governments. It added that, given the slow rate of economic recovery and the inherent lag in provincial and local government tax revenue growth, many provinces and local governments will eventually be forced to enact large cuts in public spending.
This is obviously a matter of great concern. In particular, the Financial and Fiscal Commission adds that public education and health are likely to be hit very hard. This is highly regrettable, but to a large extent unavoidable due to the fiscal framework and the situation with which we are faced. However, we agree with the commission that cuts should be limited to noncore areas to ensure that basic service delivery in the crucial areas of education and health is not compromised.
It is then very concerning to us as the ACDP that some conditional grants are being utilised to service overdraft debts at provincial and local government level. This is according to the report. This defeats the whole purpose of conditional grants, which are conditional on certain services being delivered and on compliance with specific requirements. We agree with the recommendations that have been made to address the issues of conditional grants.
We agree that "a more coherent and co-ordinated approach" is required in the management of conditional grants to ensure prudent spending and to achieve the intended objectives. Clearly as parliamentarians in our committees we will have to exercise better oversight, particularly in view of the Money Bills Amendment Procedure and Related Matters Act. The Parliamentary Budget Office, once it is up and running, will hopefully provide support to us in that regard.
Now as far as the report on this Bill is concerned, we clearly support the recommendation of the reopening of nursing and teacher-training colleges. The obvious question - as was raised before - is why were such institutions closed in the first place? Their closure resulted in a shortage of teachers, doctors and nurses.
We are also concerned that certain grants, relating to addressing backlogs in water, electricity and sanitation at clinics and schools, have been cancelled. Clearly there are still huge challenges in these areas and we wonder why that decision was taken.
Lastly, the Deputy Minister of Health stated this afternoon - if I heard him correctly - that there was no moratorium on the filling of vacancies in his department. I was then expecting him to object to the report on this Bill, which clearly states and recommends that, "the Department of Health should reconsider its moratorium on the vacancies", yet he did not express any view on this statement and recommendation in the report. But the ACDP will support the Division of the Revenue Bill.