I quote:
The developmental state should maintain its strategic role in shaping the key sectors of the economy, including the mineral and energy complex and the national transport and logistics system. Whilst the forms of state interventions would differ, the overriding objective would be to intervene strategically in these sectors to drive the growth, development and transformation of the structure of our economy.
Again, we will use the state-owned enterprises to do exactly that which Polokwane said we must do, to intervene in the economy, using them in order to make sure that we grow the economy, and we bring about development and transformation.
State-owned enterprises have a critical role to play in advancing economic growth, since they are responsible for delivering key infrastructure and manufacturing capacity. Infrastructure investments are a core part of our developmental agenda, and the state-owned enterprises are implementing comprehensive investment programmes to ensure that significant and sustained opportunities for investments are created in supplier industries.
Madam Chair, I will only focus on Denel, Eskom and Infraco, as the other members of the portfolio committee will be looking into other aspects - I am running through my speech lest you say my time is finished, Madam Chair.
It should be acknowledged that Denel's full potential as an arms manufacturing company is yet to be realised. Having passed a stage where it was in a messy state, Denel is beginning to position itself in the arms manufacturing industry and the future looks bright. Denel Land Systems has been awarded a contract by Armscor to develop the South African Army's new- generation infantry combat vehicles. This contract, which is worth R8 billion, is a tremendous boost to local industry. They have skilled human capital at their disposal, but I must say we lament - and we have raised this with Denel - that they are not reaching the targets that we have stated in terms of their management component, their engineers component, their scientist component, technologists, artisans and others. These components fall far short of what we want in terms of reflecting society as it stands today demographically. So we call on Denel: much as they are turning the corner, they will have to improve in terms of the complexion of their management, engineers, scientists, technologists and artisans.
We are very happy with what is happening at the level of Transnet, Madam Chair, and I will not say much about Transnet.
Coming back to Eskom, as the Minister said, it looks like we have to say to South Africans it is inevitable that Eskom must get the tariff hike. I don't think that it is my responsibility or my domain to say at which percentage level that tariff hike should be pegged, but I want to say to South Africans that we should begin to get ready for that kind of eventuality. But I will also call on Eskom to do what O R Tambo said to the Business International conference in London in 1987, that they should consult. They should consult their stakeholders that are in the same field as them as far as energy production is concerned, but they should also embark on an aggressive public education programme that informs the consumer, that informs South African citizens what tariff hikes are, how they come about, what Eskom needs the money for, what Eskom is going to use the money for.
My last issue will be the issue of cushioning the poor. I think that both we, as a shareholder as government, and Eskom are not assuring the poor enough that, in the case of this tariff hike, if and when it happens, and the ones that will follow, we will build mechanisms into those tariff hikes to make sure that the rich, who are the culprits in terms of heavy usage of electricity, will be the ones that are paying more than the poor, and that we will look for a regime that will cushion the poor and that will ensure that they do not subsidise the rich as far as electricity consumption is concerned.
Because I have one more minute, Madam Chair, and because Parliament is a platform for national engagement on issues of national interest, I will be failing in my duty as a public representative if I do not relate to this, Madam Minister. You will forgive me: this has nothing to do with Public Enterprises. This morning the spokesperson for the doctors who are on a wildcat strike said that they would do everything possible to bring the public health sector to its knees so that their demands are met. Now people who have medical aid, if they bring the public sector to its knees, they will have a recourse to resort to when their children and spouses and fathers and mothers and sometimes even their dogs and cats fall sick. They will have something to fall back on. I make an appeal, Madam Chair: Parliament will be failing in its duties if we do not say that, because of the law that says that they are rendering an essential service, they cannot continue to make statements like that, to say that they will do everything possible within their power to bring the public health sector to its knees.
Thank you, Madam Chair, and forgive me when I have been expedient. I did so because I had one minute extra. Thank you. [Applause.]