Speaker, the policy of holding unnecessary assets is so imbedded in the department that, in spite of our full confidence in the new Minister, the IFP will oppose the budget.
We urge the department to embark on the privatisation of nonperforming state enterprises, as well as those that serve no compelling public function.
The current global depression is reducing our tax revenues, while at the same time increasing the need for social spending, with an envisaged shortfall of R80 billion. It is envisaged that this shortfall will be made up with taxes forced onto our people with compounded interest in the form of increased public debt. We should make up this shortfall by considering selling some public enterprises.
There is no reason to continue to own, for instance, enterprises such as SAA and SA Express. In combination, they appear ripe to be sold, and should, preferably, not receive the requested R1,6 billion bailout. For 10 years Denel has been a major liability to taxpayers. This year they are approaching the Treasury for an additional R1,7 billion bailout. Domestically and internationally its weapons are not being satisfactorily sold.
In conclusion, we call upon the Department of Public Enterprises to become the incubator of enterprises still ahead of the market, but critical to our industrious future, such as biotechnology and nanotechnology research and to break up Transnet, devolving port infrastructure to the provinces and municipalities concerned, as is done in the rest of the world. I thank you.