In respect of local government, the FFC recommended that the institutional component and revenue-raising correction component be reformed, so that the institutional component assists poor municipalities and the step structure of the differentiated tax mechanism of the revenue-raising correction component is removed. The current method of using actual property rates and own revenues collected to calculate the correction is problematic, as poor fiscal effort and reporting is used as a measure for additional funding, which could be seen as a contradiction of section 227(2) of the Constitution. The FFC recommends that this practice be replaced ... [Time expired.] The ANC supports the Bill. Thank you.