Deputy Chairperson, I must say at the outset that the ANC supports the Bill. South Africa is a unitary state and that feature should inform the division of revenue. A division of revenue which is devoid of a consideration of history is unlikely to address poverty and inequality. The division of revenue should, as a developmental tool, right past wrongs and correct past imbalances.
The division of revenue ... [Interjections.] Jy moet luister, agb Lees. Jy moet mooi luister. (You need to listen, hon Lees. You need to listen carefully.)
The division of revenue should not be a means of ensuring that more of the same happens in a balanced manner, but is to be tilted towards ensuring that the gap between the formerly disadvantaged and their opposite is narrowed to its ultimate obliteration.
The allocation of resources to the three spheres of government is a critical step in the budget process, required before national government, the nine provinces and the 283 municipalities can determine their own budgets. The allocation process takes into account the powers and functions assigned to the three spheres of government. The process for making this decision is at the heart of co-operative governance as envisaged in the Constitution.
The division of revenue is a financial instrument which the ANC-led government uses to ensure that its policy programmes are brought into effect through the provision of the necessary financial resources. Given that the programmes of government are targeted towards the poor, delivery and the budget are mutually re-enforcing elements of a common objective. Hence the Division of Revenue Bill is critical in ensuring that the fiscus does meet the priorities that the ANC has set for government in terms of delivery in the various spheres of government. It is a political instrument that has a specific focus and target, informed by ANC policy and priorities.
Therefore, the five-year plan, as set out at the ANC's 52nd national conference in Polokwane, does provide key indicators which should find resonance in the Division of Revenue Bill. The ANC National Elections Manifesto of 2009 and the 2011 state of the nation address inform the Division of Revenue Bill. The Bill is one instrument to achieve these objectives and, within its allocations, to track the priorities of government, which is essential.
The decision as to where money goes is not simply a structural decision between spheres of government, but rather represents and reflects a political choice between national, provincial and local government programme priorities. Again, when we examine the horizontal division between provinces, much of what the provinces must respond to is tied to fulfilling executive mandates and upholding constitutional obligations.
With regard to the equitable share for each province, again there are deep political considerations that inform the amount each province is given under the equitable share. These considerations are rural demographics, poverty levels, population size, backlogs and key development areas within the province, as well as projects and programmes that would create jobs.
For 2011, these needs are looked after through the equitable share formulas for provincial and local government, and through specific conditional grants. The developmental needs are accounted for in the strong growth in the provincial and local government spheres of nationally raised revenue. Both the equitable share and infrastructure grant formulas are redistributive towards poorer provinces and municipalities.
The ANC government continues to invest in economic infrastructure like roads and in social infrastructure like schools, hospitals and clinics, in order to stimulate economic development and job creation so as to address economic and social disparities.
The 2011 Medium-Term Expenditure Framework, MTEF, continues to strengthen provincial and local government's ability to provide social and municipal basic services and perform their constitutional functions. It is not the Western Cape that has determined that; it is the ANC-led government that has set up a framework under which funds are allocated. It is not a miracle, therefore, that one particular Western Cape government is able to implement this, because it is part of the overall government strategy to implement this and make sure that the poor get something from the fiscus. So, the Western Cape cannot stand here and gloat about this particular provision because it has been developed by the ANC and voted for in Parliament by the ANC-led government. That is the truth. We cannot sit here and distort it. It is wrong and unfair.
On the review of the provincial equitable share formula, the ANC government has agreed to a comprehensive review of the provincial equitable share formula and a task team is currently working on this, in time for the 2011