Hon Deputy Speaker, hon Deputy President Kgalema Motlanthe, hon Members of Parliament and esteemed guests, good afternoon to you all. This month, the month of June, is Youth Month in South Africa. This year we commemorate the 35th anniversary of the Soweto and related uprisings of 1976.
Hon members, we remember and honour the bravery of these young people in putting their lives on the line against the might of the apartheid regime. We remember with pride their fight for the right to live as free human beings in the land of their birth, the land of their fathers, and the land of their forbears since time immemorial. Parliament's theme for this year's Youth Month is, appropriately: Youth action for economic freedom in our lifetime.
Deputy Speaker, the latest economic estimate is that 42% of our young people aged between 18 and 29 are out of school and unemployed. Government has set itself a job creation target of 500 000 opportunities per year. Our oversight role, therefore, should be to critically examine the impediments to job creation and make recommendations on our findings.
The Business Report of 20 June 2011 - yesterday's Report - quoted an International Monetary Fund World Economic Outlook report, which upgrades South Africa's growth estimates from 3,5% to 4%. Whilst we are heartened by this news, we agree with the Minister of Finance when he says:
The South African growth path ... is not measurable by GDP alone. It must be an inclusive growth, which especially benefits the many South Africans who have been left behind.
Similarly, we need to develop new approaches to how legislatures are involved in the measurement of progress, factoring in developmental deficits and gains.
We are now almost halfway through the Fourth Parliament. Our country has just held very successful local government elections. The level of enthusiasm and high voter turnout signify the vibrancy of our polity and the faith of the people in our democratic institutions and our democratic dispensation.
At the beginning of this year, Parliament adopted the theme: Celebrating the legacy of freedom through strengthening links to the public. Our intention was to place emphasis on our core function, namely that of representing and reflecting the will of our people in our work.
Last year the Inter-Parliamentary Union, IPU, convened a ground-breaking conference on e-Parliaments. One of the areas examined was a way in which technology can be used to link up parliamentarians with their constituencies. While technology will enhance the way we work, we must be cognisant that most in our country do not have access to information communication technology. In the absence of technological solutions, members' constituency offices still remain the frontline of contact with the people - the barometer by which we can measure real change. Also, the pilot project on parliamentary democracy offices is currently being reviewed and the report, which will be considered by the relevant parliamentary structures, will be available at the end of this month, June.
In determining the budget allocations in Vote No 2 for the 2011-12 year, we took into account the spending trends over the last three years and the alignment of Parliament's strategic policy imperatives with the budget. The executive authority and Parliamentary Oversight Authority decided that only the Medium-Term Expenditure Framework indicative percentage increases should be requested for 2011-12.
I now wish to outline the progress made in the implementation of the five key areas of delivery in our strategic plan, namely: firstly, to build an effective and efficient institution; secondly, to strengthen the oversight function; thirdly, to increase public participation; fourthly, to improve co-operative governance; and, finally, to expand Parliament's role in international relations.
The strategic objective to build an effective and efficient institution is of paramount importance. The budget makes provision for the strengthening of the Offices of the Speaker, the Chairperson and the Secretary to Parliament. The role of House Chairpersons located in the Office of the Speaker and the Office of the Chairperson has continued to evolve. House Chairpersons have taken on additional responsibilities, for example, the work around information and communication technologies and the setting up of structures to give effect to the work of the Parliamentary Group on International Relations.
In addition, funding has been allocated to the unit dealing with the bodies listed in Chapter 9 and Chapter 10 of the Constitution. This unit, located in the Office of the Speaker and headed by the Deputy Speaker, is designed specifically to co-ordinate activities between Parliament and the Chapter 9 and related institutions. The unit supports the work of committees to ensure that we enhance the level of Parliament's support to these institutions in furthering their constitutional mandates.
Parliament has also invested in the upgrading of its communications, audiovisual and computer systems to improve our communications both internal and external.
For some time now Parliament has grappled with the issue of inadequate office and committee room space. Through successive parliaments plans have been discussed in the multiparty Political Oversight Authority. Clearly, there is a need to make sure that Members of Parliament have adequate offices and that the committee rooms are also adequate. Ideally, we should have a designated room for every committee of Parliament. That's the ideal situation. [Applause.]
To set the record straight, the Department of Public Works has, as you have seen, demolished buildings on two sites upon which offices for Members of Parliament and committee rooms will be erected. [Applause.] The funds for this project will be sourced by the Department of Public Works, working closely with Parliament.
Continuous evaluation of Parliament's organisational structure has highlighted inefficiencies in some areas when meeting Parliament's strategic objectives. One of these areas is the inadequate committee support system. This evaluation identified the need to reorganise the functions of the Legislation and Oversight Division into two separate divisions. A project has been established to develop these divisions which will focus on dedicated support to committees and the language services department. It is planned that this project will be completed by October 2011, in time for additional budget needs to be incorporated in the budget process for the financial year 2012-13.
The strategic plan indicates clearly that adequate rules need to be developed to provide for the effective functioning of oversight. Provision is therefore made in this budget for an oversight unit. The Oversight and Accountability Model will be launched in book form, along with a procedural guide to committees. This will be done later today. [Applause.]
In discussions with members and chairpersons of committees, the view has been expressed that there is a need for more on-site visits to monitor the delivery of services at the point where the people are supposed to benefit. In this regard, the budget allocation for more on-site visits has been increased by 11% over the budget allocations of 2010-11. [Applause.]
Hon members, as you know, concerns have been raised in respect of attendance in the House and its committees, and this matter needs to be urgently looked at by the Whips. In addition to this, I have also noted the concerns of members of the House in respect of questions to the executive and the availability of Ministers to respond to matters raised during Members' Statements. We will continue to look at these matters to find solutions that ensure that Parliament is not in any way impeded in fulfilling its constitutional mandates.
Funding for public involvement and participation in sectoral parliaments has increased, as has funding for dissemination of information on the functioning of Parliament and the facilitation of public access to Parliament. Since last year's Budget Vote, I can report that, following a directive from the Joint Rules Committee, a project plan for the development of a public participation model for the institution has been put in place. The project team is now working and fully operational.
With respect to improving co-operative governance, the strategic plan provides for improved mechanisms and the development of protocols to guide and govern the relationships between the different spheres of government and organs of state.
Deputy Speaker, the Speakers' Forum, composed of Speakers of the national and provincial parliaments, is a platform where we bring these principles to life. We meet every quarter and provide strategic guidance on the core mandates of the legislatures, which includes issues of governance, financial management and members' interests.
Under the auspices of the Speakers' Forum, a consultative seminar was held in March this year with the participation of provincial Speakers and secretaries. Also in attendance were members of the European Union. The focus was on four Millennium Development Goals, namely education, social development, environment and co-operative governance. Following this meeting, we established a project to produce a report detailing the South African legislative sector's contribution to the achievement of the Millennium Development Goals.
With respect to the improvement and expansion of the international relations aspect of our work, I am pleased to report that the support service, the International Relations Section, was elevated to the level of a division and a new head of the International Relations Division, a former ambassador, has been appointed to head this division.
At the regional level, we have continued to support the Pan-African Parliament, based in Midrand and hosted by South Africa. We continue to provide capacity-building assistance. Officials from our administration have assisted the Pan-African Parliament administration in the areas of strategic planning and finance management, amongst others.
We also continue to participate in the programmes of the SADC Parliamentary Forum, including its election observer and monitoring missions. Our parliament hosted training in election monitoring for Members of Parliaments of the SADC region. We have agreed to second a staff member specialising in gender policy and implementation to the SADC Parliamentary Forum.
Our country, government and people will be hosting the Conference of the Parties 17, COP 17, conference on climate change in Durban in December 2011. Parliament is embarking on an extensive programme of action, which includes training for members, advocacy and awareness, and a stakeholder consultative seminar. In addition, the South African Parliament is hosting an IPU meeting on climate change in Durban in December. This meeting will endorse a draft declaration from the South African Parliament which will be presented to Conference of the Parties on behalf of the IPU.
We will also be hosting the Globe International Legislators Forum in Parliament from 2 to 4 December. The main objective of this meeting is to gain a clearer understanding among legislators on global environmental and sustainable development issues, including climate change, land use, biodiversity and ecosystems decline.
Deputy Speaker, the Fourth Parliament has devoted considerable energy and resources to the implementation of the Money Bills Amendment Procedure and Related Matters Act. You will recall that last year I made reference to the potential impact of this piece of legislation and the necessity for parliamentarians to be familiar with the Act and its provisions. In this regard, you will all be aware of the training that Parliament has facilitated.
As a part of this process, the presiding officers undertook two study tours, one led by me and one by the Chairperson of the NCOP. The visits took us to Kenya, Germany, Sweden, Japan and the Republic of Korea. The objectives of the study tours included examining the extent of amendment powers in identified parliaments, and the relationship between these parliaments and other branches and agencies of the state.
We were struck by the high level and quality of personnel support that Members of Parliament and committees receive. Although we are aware that we will be unable to reach those levels in the short-term, we are, however, working on strengthening our support services - especially content and research - so that our members will be able to carry out their work more effectively and efficiently.
Upon our return from these trips, we convened a workshop with chairpersons of portfolio and select committees, and key administrative officials of Parliament to present our findings and debate the possibilities of further enhancing our work. After much robust discussion, it was agreed that the Technical Committee and Political Task Team would consolidate the report and propose a model to suit our needs and resources.
Hon members, you will be pleased to learn that Parliament spent 99% of its total budget allocation during the 2010-11 financial year. [Applause.] Parliament also utilised R45,5 million of retained funds during this financial year to fund - to answer your question - upgrading and improvements to committee rooms, offices and information technology equipment and systems. [Applause.]
Retained funds represent the underspending of prior years and the interest earned on those funds. Parliament has in the past few years utilised these funds in areas where there were immediate needs which could not be funded through appropriated funds and from the national fiscus. The improvements to the NCOP Chamber currently under way, as well as those intended for the National Assembly Chamber, which will commence during this financial year, will be funded from retained funds. The effect of all of this is that the balance of retained funds will soon be depleted, which is a good sign, as Parliament should continue to ensure that all voted funds are spent in the year as planned.
There has been some underspending in this financial year. This has, in the main, been in the programme for members' facilities, the delays in the implementation of the language policy and the delays in the appointment of content and research specialist support staff.
In further reviewing previous budget performance, we find that the total allocation to committees of the National Assembly in the 2010-11 financial year, excluding internal management committees and joint committees, was R34,4 million. Preliminary indications are that committees spent 100% of the budget that was allocated, and an additional R4 million to cover international travel expenses. In short, committees have been able to spend 100% of the funds allocated to them.
Hon members, I am pleased to confirm that Parliament received an unqualified report from the Office of the Auditor-General. [Applause.] There were, however, matters of emphasis that relate to the basis of accounting used and expenditure management. Parliament has established a team to address the issues raised by the Auditor-General to ensure improved financial management of Parliament. I am assured by the Secretary to Parliament that these issues will be addressed in the next audit phase. I take this opportunity to commend the Secretary to Parliament and his team for ensuring another unqualified report for Parliament ... [Applause.] ... and for making such strides in improving the financial management environment of Parliament.
I now wish to turn to the actual allocations in the 2011-12 financial year. This year Parliament received a total allocation of R1,675 billion, an increase of just over 5% relative to last year's budget allocation. This represents 1,2%, or roughly 2%, of the total national budget.
The figure of R1,675 billion is divided into five programme areas. The allocation for the administration of Parliament is R350 million, which is an increase of 1,2% over the R346 million of the 2010-11 financial year.
The allocation for legislation and oversight is R296 million, which is 1,3% less than the R300 million of the 2010-11 financial year. Of this, R50 million goes to committees, which represents a R5 million or 11% increase for this financial year.
The allocation for public and international participation is R109 million, which is an increase of 38% over the R79 million for the 2010-11 financial year.
The allocation for members' facilities is R222 million, which represents an increase of 14% over the R194 million of 2010-11.
The allocation for financial support to political parties totals R288 million, which is an increase of 2,1% over the R282 million for 2010- 11.
Members' remuneration is a direct charge against the National Revenue Fund and amounts to R410 million. And that, hon members, in a nutshell, wraps up the actual allocations. Later in this debate House Chairpersons Frolick, Hajaig and Skosana will be speaking in more detail about their programmes and the issues raised.
Hon members, all over the world widening pockets of inequality, poverty and increased joblessness are challenges governments have to find solutions for. The National Planning Commission has tabled its first diagnostic report in Parliament.
We note that the report places particular emphasis on political accountability and parliamentary oversight as key markers of democratic order. It states that the political leadership should acknowledge and support the legislature's constitutional mandate to hold government to account. On the other hand, Parliament must ensure that it has sufficient research and analytical capacity to scrutinise legislation and policy implementation. In essence, Parliament must ensure that it pursues its oversight mandate with vigour and integrity so that we not only hold government to account for the promises made to the people, but we also hold ourselves and each other accountable to the people who have placed their trust in us.
I am reminded of the statement made during the United Nations, UN, Millennium Summit of 2000 by UN Secretary-General Ban Ki-moon when he said:
... we must make sure that promises made become promises kept. The consequences of doing otherwise are profound ...
I am also reminded of the words of former President Nelson Mandela, who said:
It should never be that the anger of the poor should be the finger of accusation pointed at all of us because have we failed to respond to the cries of the people for food, shelter, for the dignity of the individual.
I thank you. [Applause.]