Chairperson, it's quite interesting to hear member Smith trying to describe the situation in municipalities, as if it's a crisis. In relation to the issues that are there, for all intents and purposes, he's misinterpreting it. There is no doubt that there are challenges, but these are not crises. This is a misrepresentation of the facts; in fact, that statement is bordering on misleading the House.
Responding on the issue of what will happen to the money and how to ensure that we compensate for the increases; I think hon Smith has answered his own question, that the amount of over R500 million is aimed at ensuring that it assists the poor in relation to the forthcoming tariff increases. Therefore, it is a matter that has been taken care of.
The second matter is an issue around the increase of R900 million which is dealing with supporting the poor in relation to tariff increases. The situation, Mr Smith, in municipalities is that they are undergoing a turn- around process; there is no crisis. Don't describe it the way you do. Those are challenges that are within our power to be addressed.