House Chair, let me take this opportunity to thank all the members who contributed to the debate and supported this Division of Revenue Bill before this House. A number of issues were raised, but I am going to stick to those that relate to this Bill because some members happened to have brought the wrong speeches.
The issue of the conditional grants was raised by a number of members of this House and the committee. The performance of the grants has generally improved over the years. More children are being fed at schools compared to five years ago. Statistics also show improvement in terms of access to basic services such as water, sanitation, electricity and houses. HIV and Aids programmes are improving and a number of these grants are actually doing what they are supposed to do. However, we agree that more needs to be done. Processes are currently underway to review these grants. We trust that working together with the committee and this House, we will be able to improve on performance and oversight. At the same time we will ensure that government's programme of action is given effect.
Also, as Mr Singh indicated, we agree that provincial and equitable share formulas are based on outdated data. This is the reason that the matter is also being looked at and we trust that the 2011 Division of Revenue Bill will take this into account. One would recall that the last time we had a census was in 2001, hence the statistics we used are the only official stats available. However, we take the point, Mr Singh.
We also want to re-emphasise the fact that in order for us to ensure that these grants are not abused to pay debt or other unrelated matters which they were not meant for, as has been raised by some members, oversight in Parliament will assist us to identify those areas. The point you raised, Mr Singh, regarding the introduction of trading accounts, is a bit of a challenge because it would be difficult to monitor. We trust that you are going to work with us in finding a solution to this.
Regarding the issue of the Expanded Public Works Programme, phase two of the programme has a focus on increasing spending on labour-intensive programmes. I agree that these jobs are not sustainable, but research has also proved that once people have actually been in employ - no matter how short the period is - it provides them the opportunity to be able to move into other areas of employment.
The water services operating grant does make provision for the maintenance of existing water and infrastructure. We do, however, take the point and we should monitor whether municipalities utilise it according to the Act. Also, when it comes to the issue of capacity within municipalities, government is looking at the turnaround strategy. One would recall that the Minister of Co-operative Governance and Traditional Affairs tabled the turnaround strategy of the department. Part of that turnaround strategy looks at building capacity in a number of areas, amongst them financial management, infrastructure delivery and improving governance. So those are the areas that we would be looking at to ensure that that happens.
With regard to the issue of the recommendations by the Financial and Fiscal Commission, the FFC, as members would know, there is a response to those recommendations. We take the recommendations seriously. We are working together with the committee to ensure that those are taken into account.
Ms Ditshetelo raised the issue that the Bill must be consulted upon. The consultation process is the one that took place in the committee where - I'm told - the member missed a number of meetings. It would help when members take those consultative processes seriously because that is an opportunity to do just that. [Interjections.] However, we shall continue working with them even if it means visiting some of the members at home so that the consultation can take its real course!
Hon Ramatlakane raised the issue of whether Parliament would be equal to the task of oversight. I would want to believe that because this Parliament includes the hon member, it is equal to the task. All other members will work together to ensure that that happens.
Chairperson, without taking much of your time, once again let me take this opportunity to thank members for their support for the Division of Revenue Bill. I trust that we are now going to go out there and ensure that its implementation delivers what it is supposed to. I thank you. [Applause.]
Debate concluded.
Bill read a second time.