Hon Speaker, the unprecedented levels of load shedding due to government's failed energy policy have caused a drop of more than 25% in mining's contribution to GDP, which has contributed to the negative effect on the country's economic growth rate.
Nersa's recent approval of a 3,3% increase on top of the 27,5% levied last year has caused many people, particularly in the townships, to be deeply in debt as they struggle to pay their electricity bills.
We, unbelievably, also await a further application for another increase by Eskom of up to 54% later this year. The review of the Mining Charter is currently being undertaken, and the perception that the goalpost was unilaterally shifted shortly after the elections by the department will have negative financial consequences. Talks of nationalising the mining industry and the revival of a state mining company are of extreme concern.
In addition, the suggestion of setting up a resources bank funded by royalties payable by the mines is just as damning, as the funding of such a bank with competitors' money remains questionable.
If, as has recently been reported, a debate on the future of the South African mining industries is indeed to take place, it should rather discuss ways of stimulating the mining industry in order to maintain and indeed grow the industry as well as job opportunities.
The debate should not be on whether to nationalise mines, which in turn will cause the flight of capital and ever-increasing job losses, as recently evidenced by the withdrawal last Friday of Mitsubishi, a Canadian- registered mining company, from South African mining projects it wanted to invest in. The DA, therefore, opposes this budget. I thank you. [Applause.]