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					20 JUNE 2006                                    Page: 1 of 221

                          TUESDAY, 20 JUNE 2006

                                  ____



                PROCEEDINGS OF THE NATIONAL ASSEMBLY

                                  ____



The House met at 14:00.



House Chairperson Mr G Q M Doidge took the Chair and requested

members to observe a moment of silence for prayers or meditation.



ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.



                    PRESIDENT THABO MBEKI’S BIRTHDAY



                           (Draft Resolution)



Mrs R A NDZANGA: Chair, I hereby move without notice:



 That the House –



 (1) notes that on Sunday, 18 June       2006, President     Thabo Mbeki

     celebrated his birthday;



 (2) further notes the commendable manner in which the President

     carries out his duties on behalf of our country and people,
20 JUNE 2006                               Page: 2 of 221


     diligently contributing in the struggle to create a better life

     for all; and



 (3) wishes the President of the Republic a happy belated birthday

     and many more enjoyable moments now and in the future.



[Applause.]



Mr M J ELLIS: Mr Chairman, certainly the DA associates itself with

the motion without notice, but we do have a convention amongst the

Whips that it is the Chief Whip or the Deputy Chief Whip who will in

fact propose those motions on behalf of his or her party. I just

want to draw that to the attention of the Whips, and suggest that

they get their act together again.



The HOUSE CHAIRPERSON (Mr G Q M Doidge): If that matter can be

addressed by the Whips.



The CHIEF WHIP OF THE MAJORITY PARTY: Chair, can I respond, please?



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Can I deal with this point

first, Chief Whip?



I heard you say, Mr Ellis, that there is no objection to the motion.



Agreed to.
20 JUNE 2006                                 Page: 3 of 221


The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please respond, Chief Whip.



The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, the tradition of

this organisation called the ANC respects the role of veterans. The

birthday of such an important person befits somebody of the stature

of Ma Ndzanga. Thank you very much. [Applause.]



Mr M J ELLIS: May I respond to that, please, Mr Chairman? Mr

Chairman, we discuss this kind of thing at the Chief Whips’ Forum

and other bodies so often. It is a question of communication. I

would really say to the ANC if they had communicated that to us, we

probably wouldn’t have an objection, but it is always done on their

terms and that is the problem.



The HOUSE CHAIRPERSON (Mr G Q M Doidge): I have already said that

the matter will be raised among yourselves in the Chief Whips’ Forum

and be addressed.



Let us go on to the next motion without notice.



The CHIEF WHIP OF THE MAJORITY PARTY: Perhaps before that, let us

acknowledge the omission of the consultation part. We readily admit

to that.



                         WORLD REFUGEE DAY
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                         (Draft Resolution)



The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move without

notice:



  That the House –



  (1) notes that today, 20 June, marks World Refugee Day;



  (2) further notes that in celebrating this day, the peoples of the

      world commit themselves to redoubling their efforts to foster

      peace and friendship amongst all humanity;



  (3) realises that more still needs to be done to ensure conditions

      of peace and stability in all countries;



  (4) recalls that this year also marks the 55th anniversary of the

      adoption by the United Nations General Assembly of the

      Convention relating to the Status of Refugees in 1951, and

      that this convention sets the parameters on how refugees must

      be treated and how they should relate to their hosts;



  (5) commends our government, security forces, the African Union

      and other United Nations agencies on their efforts to secure

      peace on the continent; and
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  (6) calls on all South Africans to respect human rights and treat

      refugees with care and compassion.



Agreed to.



                       WORLD BLOOD DONOR DAY



                        (Member’s Statement)



Dr A N LUTHULI (ANC): Chairperson, 14 June has been designated World

Blood Donor Day. The ANC joins the international community in

observing World Blood Donor Day. This day aims to mobilise healthy

individuals to become regular, voluntary, unpaid blood donors, and

calls for commitment from the existing voluntary donors to continue

to donate regularly to enable the blood transfusion services and

partner organisations to provide the highest standards of care at

every stage of the transfusion process.



Every pint of blood an individual person donates saves the life of a

person involved in a car accident, or a person who has undergone

surgery.



We congratulate the SA Blood Transfusion Service on its progress

with transformation. The first matter in this regard is the

appointment of the first woman CEO, Dr Loyiso Mpuntsha. The second
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is the abolition of racial classification of blood donors and

products.



The ANC calls on all our people to join hands in the effort to save

lives by donating blood. Thank you. [Applause.]



  CONFLICT IN SOMALIA AND SOUTH AFRICA’S ROLE IN TROOP DEPLOYMENT



                         (Member’s Statement)



The LEADER OF THE OPPOSITION: Mr Chairman, the DA is deeply

concerned by reports, which have appeared very recently, of a

catastrophic humanitarian situation developing in Somalia. There is

every indication that a major confrontation is brewing between the

militia run by the so-called Islamic courts and troops loyal to the

transitional government, and there are prospects of an invasion by

neighbouring Ethiopia.



While the DA welcomes the decision to lay the groundwork for a

possible deployment of peacekeeping troops or missions to Somalia,

two critical issues need to be resolved. Firstly, which side of the

conflict has the legitimate right to support from outside forces?

Secondly, given the apparent deep mistrust that the majority of

Somalis have of foreigners, it still needs to be determined whether

a foreign force would serve to heighten or lessen the conflict.
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The South African government should therefore immediately announce

what role, if any, we as a country are to play in the proposed troop

deployment, and how advanced the plans are to deploy an African

Union peacekeeping mission.



I understand that this was discussed by the AU yesterday, and it

would be helpful if Parliament was enlightened by the government as

to the resolutions taken by the AU in this regard. Thank you.

[Applause.]



       SOUTH AFRICA’S ECONOMIC GROWTH AND UNEMPLOYMENT RATES



                        (Member’s Statement)



Prince N E ZULU (IFP): Hon Chairperson, those engaged in the study

of economics have the challenge of advising South Africa why its

economic growth does not generate enough jobs in the market.



All manner of tricks have been tried, and are being tried with even

more vigour, but sufficient jobs do not result from such trials. The

country has a growth rate of between 4% and 5% currently, and the

rate of unemployment remains unchanged, or grows even bigger in some

provinces. Indeed, it is a challenge.



We are left to speculate on many things. Some people speculate that

economic growth is not taking place across all sectors, and
20 JUNE 2006                               Page: 8 of 221


therefore some sectors carry the burden of providing jobs in

nonperforming sectors. Performing sectors are indeed job creators,

no matter how small they are in numbers, but the types of jobs they

create are those that attract the use of technology, which does not

manifest itself in massive employment. Sometimes such jobs require

highly skilled employees to the extent that foreign skills become

necessary, and the rate of unemployment remains static.



Many challenges can be further advanced in terms of why the

country’s economic growth does not satisfy the job market. It is

said that in the past 20 years there has been low or no

infrastructure investment in the country. If one casts one’s mind

back 20 years, a bleak picture of infrastructure investment reveals

itself.



We ask why it is so. We ask if South Africa needs to be more visible

and have programmes that are more transparent so that those who are

passionate about South Africa’s economic growth translating into

jobs and employment may also put their shoulders to the wheel.



We appreciate the efforts of all stakeholders on the economic front

... [Time expired.]



   MTN AND CELL C IMPROVE CELLULAR COMMUNICATION IN EASTERN CAPE



                        (Member’s Statement)
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Mnu N B FIHLA (ANC): Mhlalingaphambili, kwinkqubo yeembizo

karhulumente oxhuzula imikhala, okhokelwa ngumbutho wesizwe i-ANC,

abantu kwiphondo leMpuma Koloni bathe kutsha nje babika, phakathi

kwezikhalazo zabo, ingxaki yokungakwazi ukusebenzisa oonomyayi babo

kwiindawo abahlala kuzo.



Ngenxa yoko urhulumente uthe wathetha-thethana neenkampani

ezithengisa oonomyayi ukuzikhuthaza ukuba zizame ukuphucula

unxibelelwano ngoonomyayi kule ndawo. Sithetha nje ngoku iinkampani

i-MTN no-Cell C zibhinqele phezulu, izandla zinodaka, ziphucula

unxibelelwano ngoonomyayi kulo mmandla.



Umbutho wesizwe uchulumancile yintsebenziswano ethe yaboniswa zezi

nkampani ukusabela ikhwelo labantu bakuthi, kwaye sikhuthaza nezinye

iinkampani ukuba zizeke mzekweni. Ndiyabulela. [Kwaqhwatywa.]

(Translation of isiXhosa member’s statement follows.)



[Mr N B FIHLA (ANC): Chairperson, during the public hearings of the

ANC-led government recently, people in the Eastern Cape complained,

among other things, about the inability to use cellphones in their

areas.



In order to overcome this problem, the government negotiated with

certain cellphone companies to improve their network coverage in

these areas. Consequently MTN and Cell C are now actively trying to

improve the reception in those areas.
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The ANC is happy about the co-operation shown by these companies in

responding to our people’s call and we encourage other companies to

follow suit. Thank you. [Applause.]]



               ACKNOWLEDGEMENT OF PLIGHT OF REFUGEES



                        (Member’s Statement)



Mr S N SWART (ACDP): Chairperson, the ACDP acknowledges the plight

of refugees globally on World Refugee Day. For many South Africans a

refugee and an illegal immigrant are one and the same. Refugees,

like many foreigners, specifically from other African countries, are

often subjected to the xenophobia that exists in our country. The

ACDP is deeply disturbed by this, considering the fact that so many

other African countries opened their doors to South Africans who

fled their homes during the apartheid era.



The ACDP does not support any illegal entry into South Africa. We

do, however, condemn in the strongest possible terms the ill

treatment of refugees and asylum seekers who have been granted this

status legally by the South African government.



Last year, when the ACDP asked the Minister of Social Development

whether there was a refugee relief fund available to assist

refugees, we were informed that there was in fact such a fund, but

that it was not active because the process of appointing the board
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had taken too long owing to the complexity and dynamics involved

around issues of gender and stakeholder representation, and other

management issues.



The ACDP asks: Is it humane to allow those who are in many cases

escaping a terrible fate by coming to South Africa to be dealt

another blow owing to issues such as representation? The ACDP calls

on the Minister of Social Development to furnish us with further

details as to whether the refugee relief fund is fully operational.



Furthermore, we call on government to do all that is possible to

assist with the plight of those who are destitute owing to war and

other factors in Africa. [Time expired.]



 PUBLIC BUILDINGS TO BE MADE ACCESSIBLE TO PEOPLE WITH DISABILITIES



                        (Member’s Statement)



Mr V C GORE (ID): Hon Chair, in a major step forward for mobility-

impaired people and wheelchair users in South Africa the Equality

Court in Port Elizabeth has recently ruled that the Minister for

Justice and Constitutional Development and the Minister of Public

Works have unfairly discriminated against people with disabilities

with regard to providing access to buildings.
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In the judgment, the magistrate ordered that the building concerned

become accessible within a specified time period, and that the

national police commissioner and the area commissioner apologise in

writing for their attitude towards people with disabilities.



In a reply to a question posed by the ID in this House on Wednesday,

31 August 2005, the Minister of Safety and Security declared that

the building concerned was accessible to people with disabilities.

The questions that now need to be asked are whether the Minister

deliberately misled this House or was misinformed by his officials,

and how many other police stations that are supposedly accessible to

people with disabilities are in fact not?



This unfortunate situation has highlighted the fact that, in

particular, the Minister for Justice and Constitutional Development,

the Minister of Public Works and the Minister of Safety and Security

are not doing enough with regard to disability discrimination. The

ID therefore calls upon these Ministers and the government to

seriously reconsider their approach towards people with disabilities

and in future to ensure that all public buildings, whether rented or

owned, are fully accessible to people with disabilities. I thank

you.

                 POOR SERVICE AT MAMELODI HOSPITAL



                        (Member’s Statement)
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Mr M M S LEKGORO (ANC): Chairperson, the ANC’s parliamentary

constituency office in Mamelodi has in the past few months taken

steps to probe complaints by members of the community about the poor

quality service provided at the Mamelodi hospital.



The parliamentary constituency office found that the service is

indeed not satisfactory in a number of areas, such as attending to

patients that need emergency treatment, especially during the night.

Old age pensioners and other persons of an advanced age have

reported that there are times when they wait in queues for long

hours to have a simple checkup for blood pressure and to get new

prescriptions.



There are reports of repeated occurrences of shortages of medication

that is prescribed by doctors in the same hospital. It is also

apparent that the payment policy of the hospital is implemented

insensitively to the indigent.



We call on the MEC for health in the province and the Mamelodi day

hospital administration to pay urgent attention to this situation.

Our criticism of the hospital does not suggest that everything is

lost; there are many areas in which the hospital provides excellent

service.



We also wish to take this opportunity to commend the national and

provincial health departments for providing resources for the
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expansion of the hospital in question. We believe that that will go

a long way towards dealing with the health challenges in the

community. Thank you. [Applause.]



               BAD CONDITION OF PUBLIC ROADS IN NORTH WEST



                          (Member’s Statement)



Mr I S MFUNDISI (UCDP): Chairperson, much has been said and written

about the poor condition of roads in the country, but the greatest

culprit in this respect is none other than the North West province.



The condition of the N12, especially between Wolmaransstad and

Christiana, leaves much to be desired, to say the least. The Jekyll

and Hyde antics of the national Department of Transport and of the

provincial department do not help the public image of the government

at all. The latter keeps saying that the former is responsible for

the upkeep of the roads, and vice versa.



The UCDP maintains that the legitimate objective of a government is

to do for a community of people whatever they need done, but cannot

do at all in their separate and individual capacities. Roads fall

into this category. A community of people cannot be left to maintain

a public road.
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The number of deaths that have occurred on the N12 in the recent

past, particularly between Wolmaransstad and Bloemhof, is a real

cause for concern. It is simply a matter of time before litigation

is brought against government.



We are aware of claims submitted to the North West provincial

department of transport because of damaged tyres and shock

absorbers. The complete disregard of the Batho Pele call to the

Public Service cannot be countenanced any further. The public needs

good roads to ensure that the economy of the country flourishes.



The UCDP calls on the ANC-led government, in both instances, to live

up to their contract with the people and make them good roads and a

good life, if they are unable to make them better. I thank you.

[Applause.]



  PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK



                        (Member’s Statement)



Mr T D LEE (DA): Chairperson, at the weekend four major opposition

parties represented in this House, the DA, the IFP, the ACDP and the

FF Plus, launched a campaign to end floor-crossing. The campaign was

launched because, firstly, we recognise that floor-crossing in its

current form betrays the wishes of the electorate and lends itself

to bribery and corruption. Secondly, we know that two thirds of
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South Africans are opposed to floor-crossing; and, thirdly, we would

be failing in our duty as public representatives if we ignored the

wishes of the electorate.



We therefore urge every member of this House to support the Private

Member’s Bill that seeks to remove floor-crossing legislation from

the Statute Book. Let us show South Africa that narrow party-

political interests will never supersede the public interest in our

country. I thank you.



                  PROGRESS ON 2010 FIFA WORLD CUP



                        (Member’s Statement)



Mr M M DIKGACWI (ANC): Chairperson, the ANC is heartened by the

confidence Fifa and the broad international football community have

displayed towards our country and people. After meeting with the

2010 Local Organising Committee, the Fifa president is quoted as

having said that the event to be hosted by our country in four

years’ time will generate more money than the German World Cup.



He added that he was pleasantly surprised by the amount of work

already done by the LOC. This confirms the information shared with

the House by the Minister of Sport and Recreation that South Africa

has already met most of the deadlines agreed to with Fifa eight

months ahead of time.
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The Chief Executive Officer of the Local Organising Committee, Danny

Jordaan, confirmed that the funding target of R13 billion for the

2010 World Cup, the biggest in Fifa’s history, had already been

reached. Major sponsors of the event have already deposited their

millions into the Fifa bank account to illustrate their confidence

in our ability to organise the event. The event is projected to

create approximately 120 000 temporary and permanent jobs.



The ANC calls on all patriots to roll up their sleeves and intensify

their efforts to make the coming event a memorable one. Thank you.

[Applause.]



    JOINT BUDGET COMMITTEE AND EFFECTIVE OVERSIGHT OF GOVERNMENT

                              SPENDING



                        (Member’s Statement)



Mr T E VEZI (IFP): Chair, the Joint Budget Committee has a complex

and broad mandate given to it by resolution of Parliament in 2004.

The committee is, among other things, mandated to exercise effective

oversight over state spending on the consolidated budget, aligning

spending outcomes with government priorities and ensuring that there

is value-for-money spending by all government departments.



The IFP welcomes the fact that the committee last year held hearings

on provincial spending on health, housing and education. We all know
20 JUNE 2006                                Page: 18 of 221


that the provinces’ performance in service delivery is determined,

to a large extent, by their capacity to spend budget allocations. It

is therefore important that the budget committee continues to

monitor and oversee provincial spending in conjunction with the

Select Committee on Finance in the NCOP.



The IFP, however, is very concerned that some of the challenges

facing the committee have not been addressed effectively. Attendance

at the meetings of the committee is poor, and this seems not to be

treated with the seriousness it deserves. This should be rectified

immediately.



We support the move for more interaction with the Portfolio

Committee on Finance and the Select Committee on Finance as there is

no doubt that this will broaden the knowledge base of members to

effectively oversee government spending. I thank you.



               LEARNERSHIP PROGRAMMES IN THE WESTERN CAPE



                          (Member’s Statement)



Mr J D ARENDSE (ANC): Chairperson, the ANC-led government is

committed to programmes to train young people through learnerships

so that they can gain skills and work experience in order for them

to access jobs.
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The recent initiative taken by the Western Cape government to train

1 000 young people in various skills is one such programme. The

Western Cape government has an amount of R35 million in learnership

programmes. The programme was launched on the eve of the 30th

anniversary of the 1976 student uprising and in Youth Month. The

programme is not only aimed at providing skills but also promises

participants sustainable employment after 18 months of intensive

training.



The ANC urges all South Africans to embark on similar programmes to

give the youth opportunities to make a contribution to our society.

I thank you. [Applause.]



MINISTER OF SAFETY AND SECURITY’S COMMENTS ON CRIME IN SOUTH AFRICA



                           (Member’s Statement)



Mnr R J KING (DA): Geagte Voorsitter, die agb Minister van

Veiligheid en Sekuriteit begin al meer terugkrabbel na sy skokkende

ontkenning van die misdaadsituasie in Suid-Afrika. Na sy hopelose

onvanpaste optrede in reaksie op toesprake in sy begrotingspos hier,

het hy die volgende dag, steeds betower deur ondeurdagte toejuiging

uit eie geledere, homself herhaal in die Nasionale Raad van

Provinsies.
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Dit was al genoeg bewys dat ons agb Minister hom nie maar net per

ongeluk verspreek het en dalk polities ’n ligte “mistykie” gemaak

het nie, maar dat inderdaad elke woord wat Minister Charles Nqakula

op 1 Junie in die hierdie Raad geuiter het in werklikheid uit sy

hart gekom het en uit ware oortuigings spreek.



Om maar net aan die konsekwensies hiervan te dink laat elke

wetsgehoorsame mens sidder. Ek wil vir die agb Minister sê om nou in

verbystering oor die vloedgolf afgryse en kritiek wat hy ontketen

het terug te deins en met flou grappies oor “just a throwaway

remark” salf te probeer smeer, sal geen mens oortuig nie.



U sal iets dramaties moet doen, Minister, soos ek reeds in die

begrotingspos vir u gesê het. Geen woord wat u verder uiter sal u

politieke bas red of u beeld en politieke geloofwaardigheid kan

herstel nie. Neem asseblief dit wat u sien en hoor en waarneem

ernstig op. Aanvaar dat Suid-Afrika een van die mees gewelddadige

lande ter wêreld is en dat misdaad buite beheer is, en tree

dienooreenkomstig op. Dit is die minste wat wat enige

selfrespekterende land en sy mense met reg van sy Minister van

Veiligheid en Sekuriteit kan verwag. Ek dank u. (Translation of

Afrikaans member’s statement follows.)



[Mr R J KING (DA): Hon Chairperson, the hon Minister of Safety and

Security is increasingly backtracking following his shocking denial

of the crime situation in South Africa. After his highly
20 JUNE 2006                              Page: 21 of 221


inappropriate behaviour in reaction to speeches during his Budget

Vote here, and still mesmerised by ill-considered cheering within

his own ranks, he reiterated his statement in the National Council

of Provinces the following day.



That was sufficient proof that our hon Minister suffered no

accidental slip of the tongue and did not perhaps make a slight

political error, but that every word Minister Charles Nqakula

uttered in this House on 1 June did in fact come from his heart and

that it indicated true conviction.



To simply consider the consequences hereof makes every law-abiding

person shudder. I want to tell the hon Minister that to shy away in

bewilderment from the wave of horror and criticism he caused and to

try and be placating with lame jokes about “just a throwaway remark”

will not convince anyone.



You will have to do something dramatic, Minister, as I have already

said to you during the Budget Vote. No word you try to utter

henceforth will save your political skin or restore your image or

political credibility. Please take everything you see and hear and

observe seriously. Accept that South Africa is one of the most

violent countries in the world and that crime is out of control, and

act accordingly. That is the least any self-respecting country and

its people can rightly expect of their Minister of Safety and

Security. I thank you.]
20 JUNE 2006                              Page: 22 of 221

           NGUNI CATTLE BREEDING PROJECT IN NORTHERN CAPE



                        (Member’s Statement)



Mrs D G NHLENGETHWA (ANC): Chairperson, the ANC welcomes the

allocation of R4 million by the Industrial Development Corporation

for the establishment of the Nguni cattle breeding project in the

Northern Cape.



The IDC has signed a memorandum of understanding with the Northern

Cape department of agriculture and the University of the Free State

to foster co-operation between the different stakeholders to ensure

the success and sustainability of the project. As part of the

project, a number of communities in the province will receive a

consignment of 10 heifers and two bulls to make up the new class of

the Nguni herd over a period of five years.



The MEC for agriculture and land reform in the Northern Cape,

Comrade Tina Joemat-Pettersson, stated that the introduction of the

Nguni herds presented the province with new economic opportunities

in a sought-after market with an allied clientele.



The ANC believes that this project will stimulate economic growth in

the area and will contribute significantly to creating jobs and

reducing poverty. I thank you.
20 JUNE 2006                                 Page: 23 of 221

               POVERTY ALLEVIATION PROJECT OUTSIDE MAFIKENG



                           (Member’s Statement)



Mme M J J MATSOMELA (ANC): Re le Mokgatlo wa ANC, re itumelela

kabelo ya R22 million go tsweletsa lenaneo la ditirelo tsa setšhaba

kwa Modimola gaufi le Mafikeng, kwa porofenseng ya Bokone Bophirima.

ANC e ne ya re ka ngwaga wa 2002, fa e ne e keteka dingwaga di le

90, ya tshepisa gore mo dingwageng di le 10 tse di latelang, re

lebile ngwagakgolo wa go nna teng ga lekgotla la rona, re tla

tsepamisa matlho le go oketsa maiteko mo go fokotseng lehuma le

tlala.



Kgosi Ronny Seane Tawana wa Modimola o rile fa a tshwaela a re,

lenaneo le le fokoditse tlala mo motseng wa rona mme le re

tliseditse tshepo le botshelo jo bošwa mo Modimola. Se setla ka go

tlholwa ga ditiro di le 419 mmogo le katiso ya morafe, go fa batho

kitso le bokgoni tseo di neng di se teng. Seno se tlaa ba thusa go

bona ditiro mo isagong.



Re le ANC, re sa boeletsa maikano a rona a go dira le setšhaba sa

etsho, go tiisa dikgolagano gareng ga Maaforika Borwa le go

netefatsa gore batho ba tshwaragane le puso mo go tliseng botshelo

jo bo botoka go botlhe. Ke a leboga. [Legofi.] (Translation of

Setswana member’s statement follows.)
20 JUNE 2006                              Page: 24 of 221


[Ms M J J MATSOMELA (ANC): As the ANC, we appreciate the R22 million

fund allocated to complete the public service programmes in Modimola

near Mafikeng in the North West province. In 2002 when the ANC was

celebrating its 90th anniversary, it promised that in the next 10

years it would focus on reducing poverty and hunger.



In his comment, Chief Ronny Seane Tawana of Modimola commended the

programme for reducing hunger and bringing hope and a better life

for all in our village. This was as a result of 419 jobs created

together with training, which gave people knowledge and skills that

are so much needed. This will help them to get employment in the

near future.



As the ANC, we are recommitting ourselves to serve our people, to

strengthen unity among South Africans and to ensure that they work

together with government to ensure a better life for all. Thank you.

[Applause]]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): That was the last statement

we have time for this afternoon.



                    UNPARLIAMENTARY IMPLICATION



                              (Ruling)
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The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon members! Mr Gore

in his statement asked the question whether the Minister

deliberately misled the House. The implication that the Minister

deliberately misled the House is not acceptable as it reflects on

the integrity of a member of this House. A word or expression is

equally unparliamentary when it is put in the form of a question. I

therefore request Mr Gore to withdraw the implication that he made

that the Minister deliberately misled the House.



Mr V C GORE: Hon Chair, I withdraw the comment.



                            JOB CREATION

                        RESURFACING OF ROADS

                REPORT OF THE JOINT BUDGET COMMITTEE



                       (Minister’s Response)



The MINISTER OF FINANCE: Chair, I would like to respond to three of

the statements, the first being by the hon Prince Zulu, the second

by the member from the UCDP, and the third by the hon Vezi. I’m

sorry, but I didn’t see who it was from the UCDP as I was writing,

so please assist me as we proceed.



Prince Zulu raised the question relating to job creation in the

economy. Firstly, it is very important that we, in the House, never

propagate untruths about the economy, because the economy in the
20 JUNE 2006                              Page: 26 of 221


year to September created just over 630 000 new jobs. That growth is

larger than the growth of the population. It is, in fact, slightly

larger than economic growth as well. It is not that the economy is

not creating jobs; it cannot be that there is jobless growth in the

economy. What is an issue is that you are dealing with a huge

backlog coming over a very long period.



The other point that the hon Vezi raised is that not all sectors

will respond equally, and I think that that is correct. But we must

understand that as jobs move from one sector to the other - clothing

and textile jobs are increasingly moving to countries like China and

that is a global phenomenon - we need to be there and ready,

ensuring that we can create jobs in other sectors.



A big, big problem in our economy is that the skills base coming

through the schooling system, after years of neglect, does not allow

for rapid absorption into the economy and that is the big, big

problem that confronts us. That is why Asgisa has such a strong

focus on Jipsa to ensure that we can recruit the skills, but, more

importantly, that we can grow our own skills.



In respect of the second issue, with regard to the road between

Wolmaransstad and Bloemhof, the N12, one of the problems is that

road reconstruction is sometimes held up by all manner of processes.

In the North West of the country generally - and, I think, it would

cover that area, but it would also cover areas even towards Upington
20 JUNE 2006                                 Page: 27 of 221


- there were very heavy rains this year and the number of potholes

has actually increased quite tremendously.



I am advised by the National Roads Agency that the battle that

confronts them is whether it’s worth just resurfacing the road or

whether the road has to be rebuilt, and rebuilding roads requires

that they must go out to tender for design and then for

construction. So sometimes these processes are held up

unnecessarily. We are either going to have those kinds of processes,

for which we can then properly account for public finances, or we

are going to run ourselves into difficulties. It is a timing issue

with some of these things. I think that, very importantly, in that

part of the world, the very heavy rains in March and April of this

year have caused untold havoc to the road infrastructure.



I also appreciate the fact that the hon Vezi responded to the report

of the Joint Budget Committee. Of course I am saddened by his

comments about the poor attendance of members at the Joint Budget

Committee, and let me explain why. If you look at the report of the

Joint Budget Committee and look in particular at the approach of the

Select Committee on Finance, led by the hon Ralane, what is clear is

that Parliament is exercising its oversight role. It says:



 We have received your quarterly reports in terms of section 32 of

 the PFMA. In the case of the most recent report of the Joint Budget

 Committee, it is the third and fourth quarterly reports.
20 JUNE 2006                               Page: 28 of 221


It goes on to say:



 We are unhappy about the following issues. Kindly explain.



That is Parliament at its very best, exercising its oversight

responsibility. And when members of Parliament are then less than

diligent in the exercise of their responsibilities, I think it

leaves much to be desired. That is something that we clearly must

address, because the legislation gives the power to Parliament,

constructs the bridge for accountability and, if it’s not being

used, we in the executive can stick our hands in our pockets,

whistle and walk away. We plead with Parliament then in the same

spirit as the hon Vezi does: use the power that the legislation

gives you. Thank you, Chair. [Applause.]



  CONFLICT IN SOMALIA AND SOUTH AFRICA’S ROLE IN TROOP DEPLOYMENT



                       (Minister’s Response)



The MINISTER OF DEFENCE: Chairperson, with regard to the matter of

Somalia, I think it is important that we must just remember the

historical context in that this is one of the so-called failed

states that resulted during the closing years of the Cold War.



Following that, the East African region of nations invited a number

of the various formations that were at war with each other inside
20 JUNE 2006                              Page: 29 of 221


Somalia to engage in negotiations so that they could build the

foundations to reincorporate and unite the people. That action was

guided by the fact that the OAU and the African Union have persisted

with the approach that colonial boundaries should be maintained

because if one does not stick to them, we could unleash incredible

conflicts everywhere on the continent. So the approach of the

African Union continues to be informed by the idea that there is one

Somalia.



Now the majority of those formations that were at war signed an

agreement that produced the transitional government in Kenya, and

the AU continues to support that effort. The return therefore of the

transitional government was and is supported by the AU with the

understanding that that transitional government will continue with

the efforts of further uniting and consolidating the nation of

Somalis.



Nevertheless, as in the case of Burundi and in the DRC, there are

always one or two elements that will not be attracted to the idea of

peace, and this is the grouping that has declared a separatist

position of Somaliland. The AU - and we, of course, are bound as

part of the AU - supports the idea of Somalia. Therefore the

transitional government is a body that really deserves our support.

The media may well report ...
20 JUNE 2006                              Page: 30 of 221


The HOUSE CHAIRPERSON (Mr G Q M DOIDGE): Hon Minister, I can allow

you a few more seconds’ grace.



The MINISTER OF DEFENCE: Thank you, Chair. This is an education

class and I don’t know what to do with this matter. [Laughter.]



The HOUSE CHAIRPERSON (Mr G Q M DOIDGE): Order! The Minister is

going to continue.



The MINISTER OF DEFENCE: It may well be that reports suggest that

there is an imminent attack and so on. That’s not correct. Ethiopia

is cautiously guarding its eastern borders, but there is no

intention indicated anywhere either in the AU or in the African

Commission that Ethiopia is planning to attack Somalia. In any

event, as supporters with us of the transitional government, they

would find themselves attacking a transitional government that we

are supporting in order to put it in place.



With regard to the position of the SA National Defence Force, South

Africa, as part of SADC and as part of the Peace and Security

Committee of the AU, can only intervene in Somalia that is a

decision of the African Union. We have no independent decision in

terms of this. We don’t act as an unguided missile and just decide

anyhow that we want to go there or whatever. But, indeed, if there

were a call on the AU, the African Standby Force, the SADC brigade,
20 JUNE 2006                                Page: 31 of 221


would have to be mobilised to support the efforts of the African

Union to keep peace there.



  PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK

 PUBLIC BUILDINGS TO BE MADE ACCESSIBLE TO PEOPLE WITH DISABILITIES

MINISTER OF SAFETY AND SECURITY’S COMMENTS ON CRIME IN SOUTH AFRICA



                          (Minister’s Response)



The MINISTER IN THE PRESIDENCY: Chairperson, first of all with the

hon Lee, let me just say this: It’s always best to listen. The

President of the Republic of South Africa, who is also the President

of the ANC, said in this House that Parliament should discuss the

issue of floor-crossing. Parliament should discuss this issue, but

if you have made up your mind that floor-crossing is a betrayal, and

then say we must support the Private Member’s Bill, it means you

have stopped listening.



So, what would be the point of the ANC engaging you in a discussion

if you have already made up your mind? [Interjections.] So, don’t

make up your mind now. Enter into a discussion. At the end of the

discussion, Parliament will produce a report. Okay? So, don’t betray

your own intelligence. [Interjections.]



On the second point: Mr Gore, I want to agree with you. We do face –

and I say this as the Minister responsible for people with
20 JUNE 2006                              Page: 32 of 221


disabilities - a serious challenge with respect to ensuring that

public buildings are more accessible. But, you know what? You

yourself must become more active in the disability movement. Don’t

just sit here in this House. I don’t see you when the disability

movement is active. This is because we can’t do this on our own.

We’ve got to do this in partnership.



Secondly, become more active in the portfolio committee. That is

also set up to deal with these issues, and I don’t see you there

either. So, instead of coming here and raising issues, also use the

processes in Parliament that you have to ensure that all of us work

together to make sure that we stick to government policies with

respect to this particular issue. [Applause.]



Concerning the last question, the Minister of Safety and Security

has said previously and he said so now in an interview again that

when he said what he said, he was referring to three Members of

Parliament. [Interjections.] Just listen. You know what? I don’t

know what your parents do, but how did you grow up? Were you always

so rude to your parents? [Laughter.] So, just listen, okay?



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon, Minister, you

are running out of time.



The MINISTER IN THE PRESIDENCY: Well, you must control them too.

They must not be rude if they want us to answer. [Interjections.]
20 JUNE 2006                              Page: 33 of 221


The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please proceed, hon

Minister. Order!



Mr W J SEREMANE: Chairperson, I rise on a point of order. Is it

really parliamentary to be mentioning people’s parents here, when

they have nothing to do with this? [Interjections.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please take your seat, hon

Seremane. That’s not a point of order. Hon Minister, could you wrap

up your response?



The MINISTER IN THE PRESIDENCY: I don’t know how he thought he came

into this world. Maybe fell he off a tree if he didn’t have parents.

[Laughter.] [Interjections.] Or maybe somebody bit on an apple and

you came out. [Laughter.] So, the point I’m making ...

[Interjections.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Order!

[Interjections.] Order! Hon Minister, your time has expired.



The MINISTER IN THE PRESIDENCY: When you joined the DA from the PAC,

did you change politically and ideologically? [Interjections.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon Minister, your

time has expired. Order! Just give me a minute, hon Mulder.
20 JUNE 2006                              Page: 34 of 221


The MINISTER IN THE PRESIDENCY: No, the last time I said something

to him he never stopped crying.



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon Minister Pahad,

your time has expired, Sir. [Laughter.] [Interjections.] Order,

please!



The MINISTER IN THE PRESIDENCY: No, Im going to finish this

statement now and say ...



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon Minister!

[Laughter.]



The MINISTER IN THE PRESIDENCY: Chairperson, thank you very much,

but hon Seremane must explain politically and ideologically how he

made the jump. [Interjections.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Order!

[Interjections.] Order, hon members! [Interjections.] Hon members,

let me appeal to you: I could not be heard at all over the intercom

system. It’s ridiculous. Hon Mulder?



Dr C P MULDER: Chairperson, I just wanted to say that, with all due

respect, the Minister was going to react on a very serious matter

with regard to the remarks made by the Minister of Safety and
20 JUNE 2006                                 Page: 35 of 221


Security, and those backbenchers didn’t help us in getting the

answer. We didn’t get it at all. [Interjections.]



The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, could you please

ask the hon Seremane to contain himself? He is losing control of

himself. [Laughter.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! No, no! No response.

We are proceeding with responses from the Ministers.

[Interjections.] Order!



                  PROGRESS ON 2010 FIFA WORLD CUP

  PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK



                          (Minister’s Response)



The MINISTER OF SPORT AND RECREATION: Chairperson, I wanted to just

reaffirm what was said by the hon member about the need for

ourselves, first and foremost, to do away with the Afropessimism

that continues to be displayed outside these Chambers. We are now

told about a spurious event in term of which Fifa instructed South

Africa to change the names of some stadia.



My last meeting with the president and the secretary of Fifa was on

8 June. There has been no such indication, and there can be no such

indication. Rather, changes regarding the copyrights of hosting the
20 JUNE 2006                                 Page: 36 of 221


World Cup were already agreed to in 2004. These do not include

changing the names of the stadia. So, I only want to urge our

compatriots to begin to show self-confidence, the same confidence

that the world is beginning to have in us.



The SABC started broadcasting in Germany last week already, and you

should have seen the applause of the people in the stadium when they

heard this South African accent. They all rose up in excitement that

South Africa was participating already in the World Cup. [Applause.]

That is the spirit that we want to entrench.



I cannot sit down without agreeing with the Minister in the

Presidency on assisting members of this House as they make up their

minds on floor-crossing. I suppose I am entitled to do that, seeing

that I was the Chief Whip here in 1995 when the idea of floor-

crossing came up, not from this side of the House but from a Private

Member’s Bill sponsored by Mr Eglin of that side of the House. So,

as we come full circle and as we make up our minds on how to deal

with this circle, I thought we should remind ourselves of the

history of floor-crossing. Thank you very much, Chairperson.

[Applause.]



UNPARLIAMENTARY REMARKS MADE DURING SAFETY AND SECURITY BUDGET VOTE



                              (Ruling)
20 JUNE 2006                              Page: 37 of 221


The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Before we proceed

with the first motion on the Order Paper, I would like to give the

following ruling. During Declarations of Vote on the Safety and

Security Budget Vote on 13 June, the hon Adv T M Masutha raised a

point of order in regard to remarks made by the hon Mr P J

Groenewald in his contribution on behalf of the FF Plus. The hon

Minister of Education subsequently also rose on a point of order

with regard to Mr Groenewald’s remarks.



I undertook to study the Hansard and return to the House with a

ruling. Having now had the opportunity to study the Hansard, I rule

as follows: Mr Groenewald said in Afrikaans, with reference to the

Minister of Safety and Security:



 You are undermining democracy in South Africa, and if you

 undermine democracy, you are nothing other than a political

 criminal. Your remarks clearly indicate that you are a racist; you

 are nothing more than that.



Mr Groenewald then repeats his statement by saying:



 I said that the hon Minister is a racist and I stand by that,

 because it is the truth.



As correctly pointed out by the hon Minister of Education, there

have been various rulings in this House on calling another member a
20 JUNE 2006                              Page: 38 of 221


racist, and it is unparliamentary. As early as 1998, the former

Speaker ruled that it is never parliamentary to call another member

a racist, regardless of the context.



Similarly, the rules prohibit members from casting aspersions on the

integrity of, or imputing improper motives to other members. By

calling the hon Minister a political criminal, Mr Groenewald did

exactly that. Such accusations seriously undermine members in the

performance of their duties and they also undermine the image and

effectiveness of Parliament itself to function as the Constitution

intends.



I now ask Mr Groenewald to withdraw both offensive remarks, namely

that the Minister is a racist and a political criminal. Hon

Groenewald?



Mr P J GROENEWALD: Hon Chair, may I request a fair chance to address

you on this issue? [Interjections.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, I am requesting

a withdrawal from you.



Mnr P J GROENEWALD: Agb Voorsitter, ek wil vanuit die staanspoor sê

ek respekteer die integriteit van die Parlement, soos wat daar van

alle parlementslede verwag word, by uitstek van ’n Minister, om
20 JUNE 2006                              Page: 39 of 221


hierdie Huis se integriteit te respekteer. (Translation of Afrikaans

paragraph follows.)



[Mr P J GROENEWALD: Hon Chairperson, from the outset I would like to

say that I respect the integrity of Parliament, as it is expected of

all Members of Parliament, particularly of a Minister, to respect

the integrity of this House.]



The CHIEF WHIP OF THE MAJORITY PARTY: I rise on a point of order,

Chairperson. Please let us not allow an opportunity for a speech.

The member either withdraws or refuses to withdraw.



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon Groenewald, I am

requesting you to withdraw the offensive remarks.



Mr P J GROENEWALD: Agb Voorsitter, soos wat u my aangehaal het dat

ek die waarheid gepraat het, staan ek by die waarheid. Ek kan nie

die waarheid terugtrek nie. Ek weier om dit terug te trek. [Hon

Chairperson, as you have quoted me as I spoke the truth, I stand by

the truth. I cannot withdraw the truth. I refuse to withdraw it.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, if you are

refusing to withdraw the remarks, in terms of Rule 51, I ask you to

withdraw from the House. [Interjections.] Order!



The member thereupon withdrew.
20 JUNE 2006                                Page: 40 of 221

   SUSPENSION OF RULE 253(1) REGARDING SECOND SMALL BUSINESS TAX

               AMNESTY AND AMENDMENT OF TAXATION LAWS BILL



                           (Draft Resolution)



The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move the motion

printed in my name on the Order Paper, as follows:



  That Rule 253(1), which provides inter alia that the debate on the

  Second Reading of a Bill may not commence before at least three

  working days have elapsed since the committee’s report was tabled,

  be suspended for the purposes of conducting the Second Reading

  debate on Second Small Business Tax Amnesty and Amendment of

  Taxation Laws [B 15 – 2006] (National Assembly – sec 75) today.



Agreed to.



   SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL



                         (First Reading debate)



Ms J L FUBBS: Hon Chairperson, hon members of this House, comrades,

colleagues and my fellow countrymen, the Small Business Tax Amnesty

and Amendment of Taxation Laws Bill is more than just any Bill that

we have brought before this House. It is a Bill that deepens our
20 JUNE 2006                                 Page: 41 of 221


democracy, because it deals directly with the democratisation of the

tax regime.



Further than that, it also deals with the redistribution of the

gains that we have made, because it is only through a fair, a well-

balanced and an equitable taxation system that we are able to gain

and increase our revenues and, in that manner, contribute towards

the development and growth of our economy.



Small businesses play a key role in stimulating economic activity,

job creation and poverty alleviation; indeed, the very general

principles of living standards are improved. So many of our

businesses have been marginalised historically, and so many of them

excluded from the economic mainstream. When we look around at small

houses, at shacks on the streets and on the side of the road, we see

so many small enterprises operating.



This Bill offers people that opportunity, that generous opportunity,

as long as they are not earning, or their turnover does not exceed

R10 million a year, to come back into the greater economic South

Africa from which they have been excluded for so long, because as

long as they are excluded they will not benefit fully within the

economy.



But then there are also those small businesses that have not been

excluded from the mainstream, that operate from the garages of
20 JUNE 2006                              Page: 42 of 221


suburbs such as where I come from – Sandringham in the Sandton part

of the Johannesburg Metro.



In other parts of the country they operate almost economically

underground, and the reason for their exclusion from the tax system

is one of choice, choosing not to actually contribute to tax. People

who fall into that category I regard as refugees from the human

spirit - attitudinal aliens. They have made themselves attitudinal

aliens from our economic democracy. My appeal to such refugees is:

take the opportunity now to regularise and normalise your taxation.



As I said to begin with, this is the democratising of the tax regime

- it broadens the tax base, it facilitates the normalisation of tax

affairs of small businesses, and it also increases and improves the

culture of tax compliance. A culture of compliance will help us

expand the public purse and so contribute to the redistributive

thrust of the revenue itself.



I know that the main contents of the Bill have received much media

coverage, and indeed in this very House the Minister spoke about the

contribution this Bill would make. What I would like to just talk

about for a moment are the political considerations. The task of

democratising this tax regime has been a major undertaking, which

has been under way for a number of years. This Bill simply seeks to

continue that tax reform with a special focus on small business.
20 JUNE 2006                              Page: 43 of 221


Indeed, this is not the first time that amnesty has been offered.

The first time that that was done for those trying to avoid tax

compliance, or those who had no choice due to the historical

situation, was in the case of offshore funds being held illegally.

As you know, what we received in revenue there certainly has

contributed to our redistributive thrust. It was, indeed, highly

successful. But what we also need to do now, of course, when we do

succeed in these measures, is to have the Minister come back and

report to Parliament. Indeed, the Finance committee was very happy

to see that this was not just a conversational commitment, but that

it has been built into the Bill itself.



In fact, the success of the amnesty must be reported to Parliament,

and these details will include the number of applications received,

the number of applications approved and denied, the number of new

taxpayer registrations per type, and all amnesty levies payable. I

think that that indicates, once again, the commitment of the

Minister to parliamentary oversight and the recognition of how much

this leads to accountability.



When one talks and thinks of taxation itself, one is often reminded

of biblical stories about taxation. [Interjections.] That’s right.

Well, I must tell you, through the Chairperson, that the first house

I bought I found out had been used as a church, and I seriously

thought of becoming a member of the cloth so that I could also hold
20 JUNE 2006                              Page: 44 of 221


out my soup plate for a collection. However, I’ve chosen to earn my

wages in a different manner.



Indeed, it was very interesting to realise that during the biblical

times people then collected taxes for the very purpose of also

trying to improve the quality of people’s lives. However, what

became very seriously a matter of commission was that after the

Napoleonic wars tax was collected largely to defray expenditure of a

military nature. More recently in Britain, tax was largely imposed

to ensure that, indeed, the wealthy retained their income and the

poor or the lower middle classes lost theirs.



The difference in terms of the tax regime in South Africa is that it

does seek to equitably gather the taxes, but also, of course, to

redistribute them. South Africa is a developmental state, and in a

developmental state it is very important that equity and development

go hand in hand.



Another area which we must welcome on the part of the Ministry is

that it sought through wide consultation the views of people on the

ground, in business, in Parliament and in other areas as well. This

led to a series of revisions to ensure that the Small Business Tax

Amnesty and Amendment of Taxation Laws Bill would achieve its goal.



Of course, this is a very generous amnesty. This generous amnesty

actually says, “By the way, even if you have been ducking and diving
20 JUNE 2006                              Page: 45 of 221


for several years, we are not going to take that into account. What

we are going to take into account is the last financial year and up

to R10 million turnover.” Secondly, the one-off levy is going to be

cut from 10% to 5% in the Bill itself, and then there will be a

sliding scale.



Now, National Treasury is appealing to all small businesses to come

forward that have found themselves outside the net. But if small

businesses don’t come forward, they can expect the full wrath of the

law in this regard. Taxi owners are also advised to come forward so

that they too can be part of the taxi recapitalisation process.



This tax amnesty is a message of hope that tax continues to be used

as a redistributive instrument for change and, certainly, we accept

that small businesses, the engine of a developmental economy - which

is one in which your core capital is people and, as we know, small

businesses employ more people than larger businesses - can become

and are the engine of South Africa’s economy. The ANC supports this

Bill. Thank you, hon Chairperson. [Applause.]



Dr S M VAN DYK: Agb Speaker, Minister Manuel het ’n

belastingamnestie vir die kleinsakeondernemings in die 2006

begroting aangekondig. Behalwe vir die amptelike voordele, sal dit

ook Statistieke SA se data meer volledig maak vir ekonomiese

beplanning; meebring dat die werklike BBP meer akkuraat bereken

word; duidelikheid oor werkskepping meebring; die Minister se
20 JUNE 2006                              Page: 46 of 221


fiskale beplanning beter laat sinkroniseer met die ekonomiese

werklikhede en bedrog voorkom waar die werkgewer tans

werknemersbelasting verhaal, maar nie aan die ontvanger oorbetaal

nie.



Die DA wil sekere struikelblokke uitwys wat die goeie bedoelings van

amnestie in die wiele kan ry. Daar is geen direkte

aansporingsmaatreëls vir amnestie-aansoekers nie. Inteendeel, deur

te registreer as ’n belastingpligtige, sal daar ’n onmiddellike las

wees vir die applikant in terme van arbeidswette waaraan voldoen

moet word, wat verdere kostes inhou. Navorsing toon dat die

informele sektor belasting sien as die grootste nadeel van

registrasie en vind 24% van die informele sektor hulleself veiliger

buite die belastingnet.



Die voorskrifte vir amnestie is te akademies en

besigheidsonvriendelik. Indien die volle amnestieheffing nie betaal

word binne ’n gegewe tyd nie, of die applikant nie alle inligting

openbaar of verkeerde inligting verstrek, kan amnestie geweier word.

Dit wil sê ’n amnestie aansoeker wat onervare is met al die

voorskrifte van belastingopgawes kan oortredings per abuis maak, en

dit skrik mense af.



Die amnestietydperk van 1 Augustus vanjaar tot einde Mei volgende

jaar is te kort, omdat dit ’n geruime tyd sal neem voordat die volle

konsekwensies van amnestie by die kleinsakeondernemings sal uitkom.
20 JUNE 2006                              Page: 47 of 221


Amnestie-aansoekers het geen kultuur van boekhouding of die nakoming

van belastingprosedures nie en sal hulle ’n administratiewe eenheid

moet skep terwyl dit ook tyd sal neem om dokumentasie en inligting

bymekaar te kry.



Die huidige belastingvoorskrifte vir kleinsakeondernemings is te

tegnies en ingewikkeld, wat ook dien as rede dat baie entiteite tans

nog buite die belastingnet bly. Tyd is nodig vir behoorlike

opvoeding ten opsigte van al die soorte belasting wat uiteindelik

betaal sal moet word.



Die staat onderneem ’n taxi-herkapitaliseringsprogram waar die staat

’n R50 000 slopingstoelaag per taxi verleen, maar om daarvoor te

kwalifiseer moet taxi-eienaars ’n belastingsertifikaat toon. Gegewe

die amnestieheffing en belasting wat dan betaal sal moet word,

tesame met ’n nuwe motorpremie, sal taxi-eienaars eerder buite die

net bly.



Die vraag is ook hoe lank dit gaan neem om amnestie aansoeke te

verwerk. Deur ’n aansoek in te dien word amnestie voorlopig verleen,

maar indien die applikant nie spoedig ’n antwoord ontvang nie, kan

hy die volgende jaar se belastingopgawes weerhou, wat verdere

probleme skep.



Die moontlikheid dat amnestie geweier word kan ook aansoekers

afskrik. Onvolledige aansoeke kan die resultaat wees van onkunde om
20 JUNE 2006                              Page: 48 of 221


belastingopgawes behoorlik te voltooi. Indien die ontvanger navrae

rig vir meer inligting, kan amnestie dan geweier word. Dan beteken

dit dat die ontvanger ook vyf vorige jare se uitstaande belasting

kan eis, plus rente, plus boetes, plus nog moontlik strafregtelike

vervolging ook kan instel, en dit skrik mense af.



Gegewe die huidige kleiner winsmarge van kleinsakeondernemings,

behoort geen heffings op die belasbare inkomste van die 2006-jaar

gehef te word as vereiste vir amnestie nie. Die argument dat geen

heffing ander belastingbetalers sal benadeel, hou nie water nie.

Spesiale rekenkundige hulp behoort aan amnestie-aansoekers gegee te

word om die belastingadministrasie te vergemaklik.



Die jongste wysigings wat die Minister verlede week aangekondig het

kan lei tot verwarring. Die wysigings behoort tog duidelik en vinnig

bemark te word om foutiewe aansoek vroegtydig te vermy. Selfs in een

van die Sondagkoerante eergister is verkeerdelik na die

amnestietydperk verwys as 1 April 2004, in plaas van einde Februarie

2005.



Ten slotte, steun die DA die Minister in sy poging om alle

potensiële belastingpligtiges wel uiteindelik in die belastingnet te

kry. Die DA steun die wet. [Applous.] (Translation of Afrikaans

speech follows.)
20 JUNE 2006                              Page: 49 of 221


[Dr S M VAN DYK: Hon Speaker, in his Budget Speech of 2006 Minister

Manuel announced a tax amnesty for small businesses. Besides the

official advantages, it will also ensure that the data of Statistics

SA is more complete for economic planning; result in the actual GDP

being determined more accurately; provide more clarity regarding job

creation; result in better synchronization of the Minister’s fiscal

planning with the economic realities, and prevent fraud committed by

the employer who currently deducts tax from the employee but fails

to pay it over to the Receiver.



The DA would like to point out certain obstacles that could hamper

the good intentions of the amnesty. There are no direct incentives

for amnesty seekers. On the contrary, by registering as a taxpayer

there will be an immediate burden on the applicant in terms of the

labour laws which have to be adhered to, which involves further

costs. Research has shown that the informal sector regards tax as

the biggest disadvantage of registering and that 24% of the informal

sector feel safer outside the tax net.



The regulations for amnesty are too academic and business-

unfriendly. If the amnesty levy is not paid in full within the

prescribed period, or the applicant fails to disclose all relevant

information or provides incorrect information, amnesty can be

denied. That means that an amnesty seeker who is inexperienced in

terms of all the regulations regarding tax forms could inadvertently

default, and that drives people away.
20 JUNE 2006                              Page: 50 of 221


The amnesty period from 1 August this year to the end of May next

year is too short as it will take a considerable time for the full

ramifications of amnesty to reach small businesses. Amnesty seekers

do not have a culture of bookkeeping or completing tax procedures.

They will have to create an administrative unit, whilst it will also

take time to gather documentation and information.



The current tax regulations for small businesses are far too

technical and complicated, which is another reason why many entities

currently still remain outside the tax net. Time is required for

proper education relating to all the types of taxes to be paid

ultimately.



The state has undertaken the taxi recapitalisation programme in

which the state provides a scrapping fee of R50 000 per taxi, but in

order to qualify for this taxi owners have to produce tax

certificates. Given the amnesty levy and tax that will then have to

be paid, together with a new car premium, taxi owners would rather

stay outside the tax net.



The question is also how long it will take to process the amnesty

applications. By submitting an application, amnesty is granted

provisionally, but unless the applicant receives a speedy reply, he

may withhold the following year’s tax return, which creates further

problems.
20 JUNE 2006                              Page: 51 of 221


The possibility that amnesty could be denied, could further scare

off applicants. Incomplete application forms could be the result of

a lack of knowledge with regard to completing tax forms properly. In

the event of the Receiver requesting further information, amnesty

could then be denied. That means that the Receiver can demand

outstanding taxes for the past five years, plus interest, plus

fines, and possibly lay criminal charges as well, and that scares

people off.



Given the current smaller profit margins of small businesses, no tax

should be levied on the taxable income for the year 2006 as a

prerequisite for amnesty. The argument that no levies will

disadvantage other taxpayers, does not hold water. Special

accounting assistance should be given to amnesty seekers in order to

facilitate tax administration.



The latest amendments that were announced by the Minister last week,

could lead to confusion. Surely the amendments should be marketed

explicitly and promptly to prevent erroneous applications timeously.

Even one of the Sunday newspapers two days ago referred in error to

the amnesty date as being 1 April 2004, instead of the end of

February 2005.



In conclusion, the DA supports the Minister in his efforts

eventually to secure all potential taxpayers within the tax net. The

DA supports the Act. [Applause.]]
20 JUNE 2006                              Page: 52 of 221


Mr T E VEZI: Madam Deputy Speaker, the main purpose of this Bill is

to provide a small business tax amnesty in respect of the voluntary

disclosure of a failure to comply with the applicable tax laws. The

Bill also amends various tax laws to provide for enactment of

announcements made by the Minister of Finance during his 2006 Budget

Speech.



Many small businesses operating informally were excluded from the

economic mainstream, thus remaining outside of the tax system. These

businesses are now keen to regularise their tax affairs, but an

obstacle is their past noncompliance and the resultant potential tax

liabilities, penalties and interest.



It is the IFP’s wish that there be no problems of violence when the

taxi industry is also drawn into the net. We say this because there

are still unresolved issues in the taxi industry. Our concern is

that while the Minister and his team bring millions into the

coffers, organised crime is also busy drawing money out. The war

against poverty must be waged on all fronts, we agree. Corruption,

as the President has often pointed out, is a very worrying factor.



While we support the President in his peace efforts, we are alarmed

by the number of so-called asylum seekers who are involved in

organised crime in this country. The Department of Home Affairs

needs to be assisted by all Members of Parliament in trying to close
20 JUNE 2006                              Page: 53 of 221


the loopholes which are being opened. The IFP supports this Bill. I

thank you. [Time expired.]



Mr A HARDING: Madam Deputy Speaker, the ID believes that this Bill

will go a long way in broadening the tax base, normalising the tax

affairs of small businesses and improving the culture of compliance.

Most of the businesses affected by this Bill operate informally, and

have been historically marginalised and excluded from the economic

mainstream. The ID supports this piece of legislation.



However, we do have some concerns. We believe that the turnover

limit of R10 million should be increased to R14 million to be in

line with the new threshold limit set for business tax relief. This

will result in more businesses claiming amnesty and will ultimately

bring more taxpayers into the tax net.



Another concern we feel must be addressed are the implications in

terms of the Financial Intelligence Centre Act, and we suggest that

a specific Fica exemption be granted as one of the provisions of the

amnesty legislation.



The prohibition of carrying forward losses in previous years is

problematic, considering that many of these businesses operate on

small margins, but we acknowledge that a blanket provision may also

lead to abuse.
20 JUNE 2006                              Page: 54 of 221


While many small businesses may be eager to use this opportunity to

regularise their tax affairs, it is true that a lot of them will not

be able to cope with our complex tax legislation. This will increase

their dependence on tax advisers and practitioners, and the

resultant cost of tax compliance will increase their operational

costs.



We also suggest that the returns and the frequency will add to tax

compliance and that the length, relevance and quantity of

information be considered for small businesses. The ID supports this

Bill. Thank you.



Mr S N SWART: Madam Deputy Speaker, hon Minister, the ACDP supported

the tax amnesty for offshore funds held illegally and, similarly,

supports the provisions of this Bill that allows tax evaders to

regularise their tax affairs.



We believe it is long overdue and will bring a large number of tax

offenders into the net, thus increasing the spread of taxpayers.

This, in the long term, should result, we trust, hon Minister, in a

reduction of the tax rates.



The ACDP encourages all small businesses that have not regularised

their tax affairs to make use of the generous provisions of this

amnesty. This is a once-off offer to come clean that should not be

missed. In the words of Rhodes University tax professor, Professor
20 JUNE 2006                              Page: 55 of 221


Lester, “with the stroke of the pen, you will be transformed from a

tax leper to a fine, upstanding member of society”. If only it were

that simple to become such an upstanding member of society. However,

at the very least, as far as one’s tax affairs are concerned, one

can become legal and not have to be wary of tax inspectors. The ACDP

will support this Bill. I thank you.



Mr R B BHOOLA: Deputy Speaker, the MF views the small business tax

amnesty as a sure way to bring small businesses in line with Sars

requirements.



The MF hopes that small businesses will seize this opportunity,

instead of facing heavy penalties. This should normalise the tax

compliance culture. We do, however, feel that there are many

businesses that have been registered and face discrepancies, which

they have been penalised for. In all fairness, we suggest amnesty in

this regard too, which will further normalise tax compliance.



In view of the tax amnesty relief, the MF finds all provisions well

devised to administer the process. As a separate unit at Sars will

handle the small business tax amnesty applications, enquiry is

extended into transparency, accountability and oversight of this

process.
20 JUNE 2006                              Page: 56 of 221


The amendment of tax laws has been adequately dealt with. The MF

supports the Small Business Tax Amnesty and Amendment of Taxation

Laws Bill.



Mnu S E ASIYA: Sekela Somlomo ohloniphekileyo, baphathiswa

abahloniphekileyo, malungu ale Ndlu ahloniphekileyo nakumaqabane.

Ndibulela elithuba ndilinikiweyo lokwenza le ntetho kule Ndlu

nombandela woxolelo kwirhafu. Olu xolelo kwirhafu lwenzeka kanye

ngethuba apho sibhiyozela iminyaka engama-30 apho amaBhulu asePitoli

agwinta ulutsha eSoweto, kwaMashu, eNew Brighton eBhayi nakwaLanga

ngokunjalo.



Ikomishoni yababuthi berhafu, ngamava ayo okusebenzisana

noosomashishini abakhasayo nabancinci, kufunyaniswe ukuba uninzi

lwabo ababhalisanga okanye abandandalazisanga inkcukacha zabo

malunga nalo mthetho uthiwe thaca kule ndlu. Sibongoza amalungu ale

Ndlu ukuba awamkele lo mthetho njengomthetho ozakwenza oosomashishi

babhalise kwikomishoni ngaphandle kwedyudyu noloyiko lokungena

emgibeni wokujeziswa. Kukho izigrogriso zokuba wakubhalisa

uzakujeziswa kuthinjwe yonke into othe wayizuza ngaphambili. Ndifuna

ukuthi ngamampunge lawo.



Mandigxininise ukuba eli cham alinakuxhanyulwa ngabo baneencwadi

ezisaphengululwayo nezinekhwiniba. Xa ubani enengeniso engama-35

amawaka erandi akazukuhlawula nondancama kwirhafu kweli lizwe. Xa

unengeniso ingaphezu kwama-35 amawaka ubani wohlawula ipesenti
20 JUNE 2006                              Page: 57 of 221


ezimbini kwirhafu. Oosomashishini bacelwa ukuba bagxalathelane benze

imitsi yenkawu ukusebenzisa eli thuba.



Esi sisigaba sesibini kuxolelo lwerhafu lusenziwa ngurhulumente

olawulwa yinkongolo. Esokuqala isigaba kwakunikwe ithuba

oosomashishini abarhweba ngaphandle kwemida yeli. Abaninzi

balithabatha eli thuba beza ngaphambili. Lo nto yenza ukuba kubekho

uchatha kwingxowa kazwelonke.



Xa ndiphawula ngerhafu ndifuna ukuthi thaca kwasekuqaleni apha kule

Ndlu ihloniphekileyo ukuba wonke ubani okanye usomashishini

kuyimfuneko ukuba ahlawule irhafu nokuba yeyaluphina uhlobo. Kule

njika langa intetho izakujolisa kuxolelo kwirhafu oluthe lwacetywa

lwathiwa thaca kule ndlu nakwikomiti. Siye sayihla amahlongwane

savumelana ngamxhelo mnye sasamkela isiphakamiso eso.



Abanye oosomashishi ncakasane babephakamisa ukuba lunyuswe oluxolelo

kwirhafu luye kuma kwizigidi zamashumi amawaka erandi. Ikomiti

nesebe kunye nekomishoni yababuthi berhafu sithi le nyhweba yenzelwa

ukuba ixhanyulwe ngoosomashishini abancinci hayi oongxowankulu. Xa

uninzi lwabantu noosomashishi bethobela umthetho bahlawule irhafu

lonto ithi iinkqubo zophuhliso zikarhulumente wesizwe aziyi kusilela

koko ziyakwanda.



Kule veki iphelileyo besibhiyozela umhla we-16 kweyeSilimela 1976. A

baninzi bebezama ukucinga ukuba babesenza ntoni kwaye kwakusenzeka
20 JUNE 2006                              Page: 58 of 221


ntoni kanene ngaloo mhla. Ingaba sikhe sathatha umzuzwana sicinga

ngobume berhafu ngela xesha. Ngaloo nyaka irhafu yookopolotyeni

ibingama-43 ekhulwini. Irhafu ebihlawulwa ngabantu abamivuzo

iphezulu ibingama-66 ekhulwini.



Urhulumente okhokhelwa ngumbutho wesizwe i-ANC, ongafuni kujongana

ngezikhondo zamehlo noosomashishini abancinci nabakhulu uye weza

nale nyhweba yoxolelo kwirhafu ukuze kungabikho ngquzulwano phakathi

kwababuthi berhafu nabantu boMzantsi Afrika. Umyalezo kwikomishoni

yalapha ekhaya uthi unondyebo kandlunkulu uyenzile indima yakhe,

ngoku icekwa lilele kuni boosomashishini. Yenzani eyenu indima nize

ngaphambili.



Ikomiti eyongameleyo ithe xa igoca goca isebe nekomishomi kwacaca

mhlophe ukuba kuninzi ekufuneka kwenziwe ukufundisa oosomashishini

ukuze bangaziboni njengabafakwa emgibeni. Ndinethemba lokuba

ikomishoni xa iza kwenza ingxelo kwikomiti iza kucacisa ukuba

ngobani ababasebenzisana nabo kolu xanduva lungaka. Kule mfundiso

kufuneka babone ukuba kuyifuneko kwaye kulilungelo labo ukurhafa

nokungarhafi xa kufanelekile. Umceli mngeni kwikomishoni ngoku

kukhangela ukuba bangaphi na oosomashishini abafuna ukubafaka kulo

mnatha.



Siyikomiti eyongamele eli sebe kufuneka siyakhele umkhanyo le nkqubo

kuba isininzi saba bantu sithetha ngabo ngeli lixa ngabantu

abangazange baye esikolweni sezoshishino kwaye bondla iintsapho zabo
20 JUNE 2006                              Page: 59 of 221


abathathi ntweni. Ngokutsho andifuni ngathi ndiyalawula koko ndiyazi

ingathatha ithuba esingangonyaka. Ndiyazi mphathiswa ukuba lo mhlaba

sizakunyathela kuwo uthambile ufuna ubuchule kuchulwe ukunyathela.

Nathi kufuneka sibaze iindlebe sivule amehlo njengekomiti eyongamele

eli sebe. Sibongoza njengombutho wesizwe ukuba le Ndlu ibekekileyo

iwamkele lo mthetho uthiwe catha apha. Enkosi. (Translation of

isiXhosa speech follows.)



[Mr S E ASIYA: Hon Deputy Speaker, hon Ministers, hon members of the

House and comrades, I am grateful for this opportunity I have been

given to present this speech to this House on the issue of tax

amnesty. The tax amnesty came at a time when we commemorated the

30th anniversary of whites from Pretoria brutally killing the youth

from Soweto, KwaMashu, and New Brighton in Port Elizabeth and also

in Langa.



The commission of tax collectors, through its experience of working

closely with small and up-and-coming businessmen, has noticed that

most of them have not registered or have not disclosed their details

according to the Bill that has been presented in this House. We

appeal to the members of this House to support this Bill, as it will

enable businessmen to register with the commission without fear or

the threat of falling into the trap of being penalised. There are

rumours that people will be penalised and have their belongings that

they have collected seized once they register. I want to say that

that is not true.
20 JUNE 2006                                Page: 60 of 221


Let me stress that this opportunity cannot be made available to

those whose books are still audited and have qualified reports. If a

person earns R35 000 per annum, that person will not pay even the

minimum tax in this country. If the earnings are more than R35 000

the person will pay 2% towards tax. Businessmen are requested to act

quickly and make use of this opportunity.



This is the second phase of tax amnesty offered by the ANC-led

government. In the first phase the opportunity was given to

businessmen who trade outside the borders of this country. Most of

them grabbed that opportunity and came forward. This contributed

positively to the National Treasury.



When I comment about tax in this honourable House, from the outset I

want to say that it is necessary that every person or businessman is

appropriately required to pay any type of tax required. This

afternoon’s deliberations will focus on the planned tax amnesty

tabled in this House and to the committee. We scrutinised it

thoroughly and unanimously agreed to support the proposal.



Some businessmen even suggested that the ceiling for this tax

amnesty be raised to millions of rands. The committee, department

and the commission of tax collectors say this gesture is extended

only to small businessmen and not to the capitalists. When the

majority of people and businessmen abide by the law and pay tax,

government’s development programme will not fail but will prosper.
20 JUNE 2006                               Page: 61 of 221


Last week we were commemorating 16 June 1976. Most people thought of

what were they were doing and what happened on that day. Did we for

a moment think about the nature of tax during those days? During

that year the co-operative tax rate was about 43%. The tax paid by

people with high earnings was about 66%.



The ANC-led government, who do not want to be at loggerheads with

small and big businessmen, provided this golden opportunity of tax

amnesty, so that there should be no conflict between tax collectors

and South African citizens. The message sent by the National

Treasury to the commission is that Treasury has played its role and

that the ball is now in the court of businessmen. Make your mark and

come forward.



When the portfolio committee interrogated the department and the

commission, it became clear that a lot needs to be done to train

businessmen, so that they do not feel that they are being led into a

trap. I hope that when the commission presents its report to the

committee it will indicate the people who co-operated with them in

this huge responsibility. From this lesson they must see that it is

necessary that they pay tax and that it is their right to pay, or

not to pay tax if that is appropriate. The challenge to the

commission is to check how many businessmen they want to bring into

this net.
20 JUNE 2006                              Page: 62 of 221


As a portfolio committee in this department, we must carefully

observe this programme because most of the people we are referring

to have no formal education in business and they work to provide

food for their children; they are poor.



I do not want to appear to be making a ruling by saying this, but it

will take about a year. Minister, I know the area we are approaching

is a sensitive one and we need to tread very carefully. We must

listen carefully and be attentive as a portfolio committee in this

department. As the African National Congress, we appeal to the House

to support this Bill presented before us. Thank you.]



The MINISTER OF FINANCE: Thank you very much, Deputy Speaker. I’d

like to thank all the parties for supporting the Small Business Tax

Amnesty and Amendment of Taxation Laws Bill. There are a few issues

that are worth commenting on.



Dankie aan die agb Van Dyk vir die ondersteuning, maar jy doen dit

met so ’n swaar hart. Jy is so treurig oor die steun, maar ons los

dit maar vir nou. [Thank you to the hon Van Dyk for the support, but

you give it with such a heavy heart. You are so lacklustre about the

support, but we’ll leave it there for now.]



In respect of the hon Vezi regarding the taxi industry: clearly, you

are not going to be able to resolve all the issues with the tax

amnesty, but it is a very important start. Hon Harding, the R14-
20 JUNE 2006                              Page: 63 of 221


million threshold for small business kicks in in the 2007 year and

the R10 million is in line with the applicable maximum rate in the

year in the question.



In respect of the Financial Intelligence Centre Act, there will be a

waiver for advisers, but I have said before, and it is worth

repeating, that the tax amnesty does not render the evil gains of

criminals lawful. If people have acquired wealth by foul means, you

can’t by a tax amnesty now allow them to regularise their affairs.

They remain outside of the system, and I think it is important to

recognise that those who have broken the law must feel the full

weight of law enforcement, especially those who dispense chemicals

into townships that poison the heads of young people.



Finally, a number of members have spoken to this: clearly, we would

like to be in a position in which all our tax laws were simplified

quite extensively. It is work in progress. It is also important that

we don’t adopt this “ag foeitog” approach [“ah, shame” approach] in

respect of small business.



This is because there is actually a much higher level of

sophistication and savvy than what we give small business credit

for. Some have fallen into a situation now in which their tax

affairs are not in order. But, from our own engagement, I am quite

impressed with the amount of savvy and street wisdom that obtains
20 JUNE 2006                               Page: 64 of 221


and I am pretty sure that small businesses will know that it is in

their interests to regularise their affairs.



Thank you very much for the support. We ask that the matter now be

taken to the next stage.   Thank you very much, Deputy Speaker.

[Applause.]



Debate concluded.



Bill read a first time.



   SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL



                       (Second Reading debate)



There was no debate.



Bill read a second time.



  SECOND SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS

                                 BILL



                       (Second Reading debate)



There was no debate.
20 JUNE 2006                              Page: 65 of 221


Bill read a second time.



THE NEED FOR SOUTH AFRICA TO UNDERGO A SKILLS REVOLUTION IF IT IS TO

                      MEET THE GOALS OF ASGISA



                      (Subject for Discussion)



Mr C M LOWE: Thank you, Madam Deputy Speaker.



Professional skills are critically needed as the country moves into

a higher economic gear and one of the most fatal constraints to

shared growth is the lack of skills – nothing short of a skills

revolution will extricate the country from the skills shortage

crisis it faces.



These are the words of the Deputy President, speaking at the launch

of the Joint Initiative for Priority Skills Acquisition on 27 March.

“That fact”, she went on to say, “should be admitted with emphasis”.



The DA welcomes the Deputy President’s refreshing candour,

absolutely concurs with her assessment of the situation and thanks

Parliament for agreeing to debate this important matter this

afternoon.



South Africa needs to undergo a skills revolution if it is to meet

the goals of the Accelerated and Shared Growth Initiative for South
20 JUNE 2006                              Page: 66 of 221


Africa. My colleague the hon Van Dyk will speak to the need to

address the current legislated racial bias that prevents thousands

of skilled South Africans from applying for or being placed in those

skilled positions that are currently vacant. Suffice for me to say,

that starting a skills revolution also means stemming the flight of

scarce and crucial skills out of the country and welcoming back

individuals who have left the country because of the fact that

affirmative action quotas prevent them from getting work and

contributing to our country’s economy.



Every skilled position filled results in the creation of eight

further jobs – so if we fill the 500 000 skilled vacancies, we can

create up to 4 million new jobs and be well on our way to meeting

government’s goal of halving unemployment. These skilled individuals

can, in turn, mentor, train and teach the as yet unskilled

employees. Everybody wins.



But to do this with a skills revolution that will truly deliver the

skills and jobs, economic growth must be the non-negotiable priority

above racial preferencing. If we continue along the current path,

racial transformation will continue to occur only among South

Africa’s small elite at the expense of economic growth, jobs and

ultimately the unemployed masses.



Twelve years after the introduction of the RDP, the fundamental

problem remains the same, namely wide-scale unemployment of up to
20 JUNE 2006                              Page: 67 of 221


40% of the workforce, with much of it caused by a huge skills

deficit. Recent HSRC skills surveys show that fewer than 40% of

school-leavers currently find jobs.



There have been some successes within the Seta systems, but by and

large they have been an expensive failure. They have not nearly met

their learnership targets and, in the few exceptional Setas where

they have done so, only a very small percentage of learners have

actually gone on to find work. Even with the Minister of Labour’s

intervention in 2004, arising from the extremely poor performance of

the Seta system, the situation has hardly improved.



The DA’s solution to the skills crisis is to make companies and

private-sector bodies, which have the analytical, logical and

managerial ability to develop skills far more effectively than the

Setas, the engine rooms for the skills revolution. The combined

decentralised action of thousands of South African businesses will

result in an economy-wide responsive, efficient training environment

- a true skills revolution. If the entire existing budget for Setas

were channelled into such an initiative, the amount left over would

easily fund a nationwide tax rebate equivalent to one third of

tertiary institution fees for four years of successful study.



Combining such a scheme with a tax deduction of 150% of the first

R2 000 per month of every employee’s salary would create a situation

in which businesses are incentivised not only to employ more
20 JUNE 2006                              Page: 68 of 221


workers, but to train and develop them to meet the future skills

needs of the businesses and of South Africa.



Solving a problem of this magnitude also means clearly delineating

responsibilities between the Department of Education and the

Department of Labour. Yet it seems that these two departments have

been involved in a turf war over who has responsibility for what.

And the result has seen schools across the board producing

matriculants who cannot do simple maths or spell. Yet maths and

science are two key subject areas that learners require if we are to

effect a skills revolution.



Concerns raised by Professor Jonathan Jansen, Dean of Education at

the University of Pretoria, echo the very concerns raised by two

Seta CEOs at last month’s Labour portfolio hearings on youth

unemployment, concerns denied and shouted down by some members of

the portfolio committee. They are that the current education

syllabus produces learners who lack the basic skills of reading

thoughtfully, writing accurately and speaking fluently, as well as

the basic ability to work with numbers.



The SA Democratic Teachers Union has come out in full support of

Jansen’s suggestions. I think that the Portfolio Committee on Labour

needs to look at these concerns again and see how this lack of basic

skills makes it extremely difficult, if not impossible, for
20 JUNE 2006                              Page: 69 of 221


matriculants to find or create ordinary jobs, never mind highly

skilled positions.



The Deputy President agrees. Last week in Parliament she conceded

that there is still a big gap between the skills taught in schools,

colleges and universities and those required in the workplace.

Again, the DA wishes to acknowledge her frankness and to support her

views.



Employers spend considerable sums giving basic training to

matriculants before they can be given tasks that they should, by

that time, be able to figure out for themselves. Universities

confirm that first-year students, often with good school symbols,

lack the knowledge and skills to meet the educational demands of

higher education, including the inability to do basic library

research, work within a diverse team and solve the sort of problems

they may meet.



This problem of inappropriate education is as bad in the formerly

white schools as it is in the badly equipped black schools, although

in poor schools bad syllabi are compounded by teachers who lack

sufficient knowledge and sporadic school attendance.



In the time left to me at the end of this debate, I shall summarise

and conclude on this very important issue. Thank you. [Applause.]
20 JUNE 2006                              Page: 70 of 221


Mr L ZITA: Chairperson and colleagues, over the past 12 years the

ANC-led government has laid the foundation for stable yet

progressive rule. In this decade and beyond, we have surprised even

ourselves on the ability to keep a positive and stable macroeconomic

stance whilst addressing the demands for social protection and the

pursuit of pro-poor policies.



Some might undervalue the importance we ascribed to stability, but

we understood that only in this context would we be able to create

the conditions for sustained social transformation in our society.

Today the public rating of our government is the highest in decades.

Indeed, it is not the fecundity of our imagination speaking when we

say that, to the majority of South Africans across racial and class

divides, there is a palpable feeling that today is better than

yesterday and that tomorrow will even be better.



However, despite these achievements, in areas such as housing,

water, electricity and social protection, a lot still needs to be

done. Our levels of unemployment are narrowly estimated to be at 27%

whilst in an expanded form are estimated to be 40%.



According to the Labour Force Survey in September 2005, over 34% of

those employed were earning under R1 000 per month. Together with

those who were earning between R1 000 and R2 500, they constituted

60% of our labour force. To restate this: 60% of South Africans, the

majority of whom are African, earn less than R2 500 per month.
20 JUNE 2006                              Page: 71 of 221


This should be contrasted with the R52 million that Whitey Basson

from Checkers, the R42,7 million that Steve Ross from Edgars and the

R19 million that Phuthuma Nhleko from MTN get every year. Therefore,

we not only have a problem of high unemployment, we also have a

generalised situation of low wages and unacceptable levels of

inequality in our society.



Asgisa talks to this reality. Firstly, Asgisa seeks to address the

causes of this sad situation. You cannot find a solution to a

problem if you have not clearly determined the ailment. The problems

of our economy derive from it being an enclave economy, with a

limited manufacturing base and a limited domestic market dependent

on primary exports, undergirded by the overdetermination of

historically institutionalised racism.



This historically racist and enclave economy, designed for a

minority of South Africans, has failed to meet the needs of a

postapartheid society with unrestricted labour mobility and the

demands of a globalising economy. As a result of this, a number of

binding constraints are evident.



There is a tendency towards volatility of the currency, an expensive

and ineffective national logistics system, a shortage of suitably

skilled labour reinforced by the costs of apartheid geography as

well as barriers to entry, limits to competition and limited new

investment opportunities, with a regulatory environment which
20 JUNE 2006                              Page: 72 of 221


burdens small and medium-sized enterprises, and challenges in state

organisation, capacity and leadership.



The Accelerated and Shared Growth Initiative for South Africa is

about increasing the pace of growth whilst simultaneously sharing

the basis and the proceeds of that growth. To effect both the

sharing and the growth, the Asgisa programme locates the democratic

state at the helm of an accumulation process that seeks to catalyse

the broader economy on a renewed and sustained wave of investment.

Beyond this objective of investment it seeks to create an enabling

environment that fundamentally improves the conditions for doing

business in South Africa. To effect this, the government seeks to

invest R370 billion over the next three years in electricity,

transport and communications infrastructure.



Beyond this stimulating role, these investments are also designed to

improve the environment of business. There are also specific

sectoral initiatives that the Asgisa programme seeks to focus on.

They include business process outsourcing and tourism in the service

industry. In the manufacturing industry the priority sectors are

biofuels, chemicals, metals and metallurgy; agroprocessing; wood,

pulp and paper; clothing and textiles, and durable consumer goods.



Thirdly, the government seeks to consolidate and have an effect on

the second economy interventions by bridging the links between the
20 JUNE 2006                              Page: 73 of 221


first and the second economy, as well as strengthening sustainable

livelihoods.



As the ANC we want to underscore the fact that for us the Asgisa

programme has to be the anchor around which every policy of

government and the private sector is measured. Every programme of

government should be evaluated on the extent to which it advances

accelerated and shared growth. From the point of view of Parliament

this will be the angle from which we do our oversight work.



All of these interventions will be unrealisable without the

appropriate skills to realise them. To this extent, we agree as the

ANC with the topic of this debate. Indeed, nothing less than a

revolution will be needed to realise the acquisition of skills.



We endorse Jipsa, the Joint Initiative for Priority Skills

Acquisition. We endorse, in particular, the resoluteness and

creativeness that the government has put into this question. The

attempt to identify in precise terms what skills shortages we have

will go a long way in helping us to solve this challenge.



It is our view that whilst this process should be led by the

government, society should position itself to respond to these

identified sectors. If engineering or IT skills are needed, training

institutions should position themselves to respond to these needs.

To ensure that this societal positioning achieves the desired
20 JUNE 2006                              Page: 74 of 221


results, measures will have to be pursued to ensure that the skills

that people are trained in are of the appropriate character and

level. There should therefore be appropriate quality control

measures.



We also believe that what we are dealing with here is a moment of

epochal dimensions for our country. Epochal circumstances demand

epochal means. If we have serious skills shortages, why should we

not continue training even in the evenings? Why should we not

recruit enough trainers to ensure that, just like factories that

have to have night shifts to meet greater demands, we also have such

shifts for skills training?



As the ANC we believe it is important that we maintain the momentum

of a plough-back initiative to everyone who has something to offer

with regard to skills. Appropriate incentives should be looked at to

ensure that South Africans outside the country come back. We need to

ensure also that beyond material incentives a volunteer movement for

skills is mobilised. We need to establish, amongst other things, a

register of retired maths teachers who can be mobilised for the

challenge of skills. The same can be said for language teachers,

retired plumbers, electricians, etc. Our society needs to heed the

perennial call of the Congress of South African Students, Cosas,

which says: “Each one teach one.”
20 JUNE 2006                              Page: 75 of 221


Without undermining development in other African countries, we need

to position our country as a destination of choice for skilled

Africans on the continent and for those in the African diaspora. To

this extent we will have to fight the demon of xenophobia.



More importantly, it will be critical that all levels of government

and their respective business and labour counterparts co-operate in

establishing their localised Asgisa initiatives, including a skills

plan. Every municipality in our country should have the skills and

the resources to effect this.



It is important to indicate to Mr Lowe that it is not correct to

counterpose the need to involve all South Africans in the skills

challenge and the challenge of black economic empowerment and

affirmative action. These things reinforce each other. You cannot

say that one is more important than the other. Yes, we need to

invite people to come and contribute with their skills, but we must

also continue with the challenge of transforming the skills profile

of our society. It cannot be correct that only whites are engineers;

it cannot be correct that only whites are IT operators. We have to

ensure that everyone participates in all the critical skills our

society needs.



Secondly, with regard to the Setas, I think that indeed the Setas

are a challenge and all of us would acknowledge that. More can be

done to ensure that there is convergence between what the Setas are
20 JUNE 2006                              Page: 76 of 221


offering and what the industry needs. These are challenges that we

need to look at and address.



I would challenge business to come up far more energetically and

decisively to participate in the Seta process to ensure that they

themselves indicate the critical skills that they are missing so

that there is confluence and convergence between the market needs

and the supply of those skills in our society.



Only with this level of mobilisation will we be able to ensure that

the ambitious programme of Asgisa is able to meet the 6% growth rate

and halve unemployment by 2014. I thank you. [Applause.]



Prince N E ZULU: Hon Chairperson, the overriding goal of Asgisa is

to drive the country’s economic growth to sustained levels of 6% per

annum in order to accelerate delivery on absolute needs and broader

social development. This needs to happen faster and better in order

to avoid a future full of uncertainties for South Africa.



By now it is common cause among government, the business sector and

other role-players that South Africa suffers from a dire shortage of

skills in various fields, such as engineering, science and medicine.

To that end, the government launched Jipsa as a short-term measure

to acquire the priority skills the economy needs to expand and grow.

We welcome this move.
20 JUNE 2006                              Page: 77 of 221


However, Jipsa will only address short-term needs and the country

needs a complete rethink on skills development for the future. There

are many facts about the skill shortage that can be mentioned and I

want to highlight just two. Hon members would be aware that Eskom is

planning a massive expansion programme to increase electricity

supply, which is already under some pressure due to growing demand.

But, two years ago when Eskom looked for 400 qualified engineers in

the electricity field, it could only find 160 such engineers in the

country after a search that lasted more than a year.



The mining industry, one of the most important sectors in the

economy, relies heavily on artisans. But, of the 51 000 artisans in

South Africa, it is expected that about 70% will leave the industry

in the next five to six years due to natural attrition as the

average age is around 54. That means the industry will have to train

between 10 000 and 12 000 artisans every year, but currently there

are only 1 695 learners in artisan training. This paints a very

bleak picture.



These examples show the depth of the skills problem in our country.

But what is even more shocking is the fact that the majority of

learners who come through our school education system are simply not

ready to be taken up into training programmes, learnerships and

higher forms of education, because their basic skills such as

reading, speaking and writing are not up to the mark.
20 JUNE 2006                              Page: 78 of 221


We can talk about the need for a skills revolution, yes, but what we

really need is an education system that produces learners who

already have the basic skills to enter seamlessly into training

programmes and skills development learnerships.



While we agree that a skills revolution is necessary, the IFP feels

that an education revolution will serve our country’s long-term

interests and economic development more. Thank you.



Mr H B CUPIDO: Chairperson, if a skills revolution will ensure that

poverty and unemployment rates are halved by 2010 or 2014 and that a

6% growth rate will be achieved, it becomes more imperative that all

role-players consistently demonstrate their visible commitment to

such a skills revolution and provide the South African public with

ongoing evidence of measurable results.



The identification of scarce skills is an appropriate place to

start, and this first phase of the Joint Initiative for Priority

Skills Acquisition, or Jipsa, has been proceeding remarkably well.

The logical next step would be to focus on those institutions at

which South Africans can acquire these skills and it is at this

point that some critical issues arise.



By the time our learners reach the tertiary educational level, their

capacity to acquire skills has, to a large extent, already been

shaped by the preceding school years. In recent times, there has
20 JUNE 2006                              Page: 79 of 221


been a tendency to lower the standards of education in order to

boost pass rates. This lowering of standards significantly impairs

learners’ preparedness for the acquisition of further skills.



A further area of concern is the removal of formalised trade tests

for artisans. The ACDP is of the opinion that the setting of

standards for our technical skills groups must not be adversely

affected by the absence of these trade tests and that integrity must

be maintained in the certification of our artisans.



The ACDP supports the idea of a skills revolution as the primary

vehicle for accelerated and shared growth. [Time expired.]



Mr M J G MZONDEKI: Chairperson, let me start by sharing with the

members an article that appeared in Enterprise magazine in June

2006. This article on some of the work that is done by the Umsobomvu

Youth Fund is about encouraging young girls and boys to embark on

business.



This article says that that the fund’s Umsobomvu in-school

entrepreneurship programme has inspired a Limpopo-based schoolgirl

to invest her pocket money in a vegetable and fruit business in her

village. This girl, Reneilwe Kabe, 15 years old and a Grade 10 pupil

at Machedi Secondary School in Garankuwa village near Polokwane, was

the winner of a business plan competition held by the Umsobomvu

Youth Fund in collaboration with the Maths Centre and National
20 JUNE 2006                               Page: 80 of 221


Foundation for Teaching Entrepreneurship. She’s off to New York as

we speak to represent South Africa’s youth at the 26th National

Foundation Annual Programme Partner Retreat Conference. [Applause.]



The entrepreneurship programme was modelled on the NFTE programme,

which was brought to South Africa from the US by Umsobomvu. This

young entrepreneur was introduced to farming by reading her father’s

books on gardening. She uses her pocket money to buy seeds, and her

parents assist her to purchase the fertilisers and pesticides. We

are told that her business is flourishing. Her markets are the

health clinics in the area as well as the pension paypoints. She

says that the aim of her business is to provide the poor rural

community with easier access to fresh fruit and vegetables. She

says, “Starting my own business has brought me closer to health

issues and the importance of healthy food and a balanced diet.”



The article goes on to say that this programme by the Umsobomvu

Youth Fund has also benefited the community. The Umsobomvu programme

manager, Thembisile Khoza, says that the programme has already been

introduced to the Department of Education and is in line with the

national government strategy of outcomes-based education. Khoza

explains that the in-school entrepreneurship programme has begun to

bear fruit for the entire community and not just for children and

teachers.
20 JUNE 2006                              Page: 81 of 221


I think we can take a few lessons from this in that if all of us

begin to identify these little programmes that are intended at

skilling people from very young ages, I am sure we can go a long way

in meeting some of the challenges that we have. I wish I could see

more young boys and girls getting inspired in the same way that

Reneilwe did. If we did so, I’m sure that many of them would not be

queuing looking for jobs. They would be busy preparing their

recruitment policies. I also wish that Members of Parliament could

identify more of these programmes in order for us to sell more of

them to the rest of the country. I wish Reneilwe every success in

her endeavours.



The report of 2003 on the state of skills in South Africa summarises

the key features of the South African labour market as follows:

unemployment remains the key challenge for transformation for the

South African labour market. It says that providing training

especially to African unemployed youth could enhance their prospects

of accessing the labour market. Such an intervention can also

promote social cohesion and build the skills base from which

accelerated growth and development can be launched.



The proportion of African workers with relatively low educational

levels remains large and should form a focal point in attempts to

link skills development and equity, and my colleague Langa Zita has

alluded to the fact that we need to combine these two. We can’t talk

about skills development and not talk about employment equity.
20 JUNE 2006                               Page: 82 of 221




The African workers remain underrepresented in certain high-skill

occupations and this should also form a focal point in linking

skills and equity where training can assist and offer a chance for

promotion and mobility in the workplace.



I would like to focus my speech on the role of the employers and the

employees in skills development and training in the workplace. The

Labour Relations Act provides for a workplace forum, which is a

structure that allows for consultation between the employers and the

employees. The forum deals, amongst other things, with the

restructuring of the workplace, including the introduction of new

technology and new work methods, education and training and other

matters of consultation. There is no doubt that when such

restructuring takes place, when new methods are introduced, new

skills are also needed.



The employers have a prerogative to produce a skills audit, which

reflects the skills in that company. The workers must also ensure

that indeed the skills audit is a true reflection of the workplace

and, again, my colleague Langa Zita did say that the workers have a

role to play in ensuring that the skills we are given are the skills

that we indeed need as workers.



I earlier referred to the need for a link between skills development

and equity. The Employment Equity Act provides for a code of good
20 JUNE 2006                                 Page: 83 of 221


practice in the preparation, the implementation and the monitoring

of employment equity plans. The process needs to include proper

communication and awareness in terms of all stakeholders. This

includes the workers and the employers. The unions or the workers

need to ensure that through their representatives the plans indeed

address the inequalities in the workplace.



The ANC believes that through the strengthening of this process

workers can get an opportunity for mobility and promotion. Workers

can be trained and reskilled instead of being retrenched. Programmes

such as the Abet programme need to be properly communicated among

the stakeholders so that concerns, such the cost of training and

loss of production time – again, Comrade Langa Zita did talk about

where we could even extend training after hours - can be discussed

and resolved by all the stakeholders.



I want to talk about the role of employers in assisting new entrants

to acquire work experience. There are good examples of companies

that go out of their way to orientate new graduates who have no

experience and to place them in mentoring programmes for management

positions.



South Africa needs many more such companies so that together we can

reduce the number of graduates on the streets. My personal

experience is that many employers are reluctant to give such

experiential training; they want to have ready-mades. We further
20 JUNE 2006                              Page: 84 of 221


applaud the government’s commitment to skilling the nation through

various programmes such as the learnerships and apprenticeships.



Again, regarding the problem of the Setas, we appeal to all

stakeholders to deploy people who can add value to the Seta boards,

so that the Setas can function even better. Currently, there is an

outcry that the Seta boards are not strong enough because there is

reluctance by some stakeholders to place their key and senior staff

on these boards. We need strong boards that can influence the work

of the Setas.



The role that is played by Ditsela, which is the Development

Institute for Training, Support and Education for Labour, is highly

appreciated. Ditsela was created to help build the labour movement’s

education and organisational capacity. Hence, we said that we need a

very strong labour movement that can engage with the new challenges

that we all face, especially in the skills area.



Finally, we welcome Jipsa and we would like to quote the Deputy

President during the launch of Jipsa earlier this year. It is

unfortunate that I am quoting from the same book my colleague Lowe

quoted from:



 Nothing short of a skills revolution by a nation united will

 extricate us from the crisis we face. We are addressing log jams,

 some of which are systemic and therefore in some cases entrenched,
20 JUNE 2006                              Page: 85 of 221


 even in the postapartheid South Africa. The systemic nature of

 some of our challenges undermines our excellent new policies, at

 least in the short term, hence the need for interventions such as

 Jipsa to enhance implementation of our policies.



 Only if we have a nation that is united in partnership can we

 reverse the trend with regard to skills and give our policies a

 chance to succeed in the medium to long term.



Thank you, Chairperson. [Applause.]



Mr W D SPIES: Hon Chairperson, according to traditional economic

thought, the country’s most important resources are its mineral

wealth and its infrastructure. This is still true, but as the

information revolution has forced the global economy away from large

infrastructure and resources towards knowledge and skills, skills

are increasingly becoming an important commodity. That is why the

challenge is for any country not only to enable its population to

acquire skills, but also to retain those people once they have

acquired the skills that they need.



Skilled people are therefore any country’s most valuable asset.

Economist Dr Pieter Haasbroek of Barloworld calculated that for

every one professionally skilled person leaving the country, up to

eight job opportunities are taken with him or her. The exodus of
20 JUNE 2006                              Page: 86 of 221


skilled South Africans is therefore a determining factor in the

current unemployment crisis in the country.



The FF Plus commends the statesmanship, or rather stateswomanship,

displayed by the Deputy President when she accepted the challenge of

our party to have certain skilled and desperate white South Africans

screened and appointed by the Development Bank of Southern Africa.

In this regard, the FF Plus on behalf of Zanda van Rooyen, Esias

Pieterse and Chris van Zyl wishes to thank the Deputy President for

giving them the opportunity to offer their skills towards the

improvement of local government.



But these people are just a drop in the ocean compared to the

hundreds of thousands who have already had to leave the country in

order to earn a living elsewhere. Thank you. [Time expired.]



Mr I S MFUNDISI: Chairperson and hon members, there is a great need

for a philosophical, ideological, educational and psychological

overhaul of the mindset if this country is to ensure that we have

the required skills. Our education system has to be assisted to

transform itself to the point of producing graduates of the new age

of hope who will grapple with the challenges of information

technology. Our universities should revert to internships so that

when graduates leave university they have had first-hand experience

and potential employers have noted them already.
20 JUNE 2006                              Page: 87 of 221


Affirmative action should be put under the microscope to examine the

extent to which it is doing what it is meant to do in terms of the

Constitution. We have to guard against reversing the evils of the

past as no two wrongs make a right. To mind comes the unpleasant

situation in the Department of Home Affairs in which the accounting

officer, in his own words, admitted that he had no idea whatsoever

what the department was about when he was appointed to the post. The

floundering in the National Intelligence Agency is another example

of people appointed not because there were suitably skilled but

because they had a responsibility to belong to some or other

political party.



The rank-and-file members of the public put it beyond doubt when

they told the President at an imbizo in Namaqualand that placement

in jobs depended on political affiliation and not skills. We hope

that the words of President Mbeki that people should be arrested who

appoint people on the grounds of political correctness and not

ability will ring a bell to revolutionise meeting Asgisa goals. I

thank you. [Time expired.]



Dr S M VAN DYK: Agb Voorsitter, die kern van die debat is baie

eenvoudig: ons het ’n tekort aan geskoolde arbeid in Suid-Afrika,

terwyl die beskikbare geskoolde werkers ook nie die arbeidsmark

betree nie, vanweë regstellende aksie in die openbare sektor en

statutêre voorskrifte vir die privaatsektor. Ek wil dit duidelik

stel dat regstellende aksie nodig is om die ongelykhede van die
20 JUNE 2006                              Page: 88 of 221


verlede reg te stel, maar die probleem lê by die proses waarmee die

regering dit implementeer en dit bots direk met Minister Manuel se

goeie bedoelings met sy fiskale beleid om die ekonomiese groeikoers

te verhoog.



Regstellende aksie dwing sakeondernemings dat die rassesamestelling

van werkplekke die bevolkingsamestelling moet weerspieël. Dit maak

dat sakeondernemings eenvoudig nie hul produksieprosesse uitbrei nie

of dat hulle arbeid met masjinerie vervang – tot nadeel van

werkskepping.



In die openbare sektor bepaal regeringsbeleid dat regstellende aksie

toegepas word. Produktiwiteit word in die meeste gevalle buite

rekening gelaat en word comrades, vriende en familie aangestel.

Geskooldes van alle rasse word oor die hoof gesien. Baie aansoekers

word met vervalste skool- en nagraadse sertifikate aangestel, maar

die ekonomie is wreed genoeg om ongeskoolde arbeid se swak

produktiwiteit baie gou te openbaar. Daarom lees ons daagliks van

die swak finansiële en administratiewe bestuur van die openbare

departemente op al drie vlakke van regering.



Die gevolg van regstellende aksie, wat die beginsel van gelyke regte

en geleenthede minag, maak dat jong geskoolde arbeid die land

verlaat. Volgens Solidariteit is dit so dat vir elke 1 000

geskooldes wat die land verlaat, word 70 000 ander Suid-Afrikaners

sonder ’n inkomste gelaat. Hierdie emigrasie, tesame met die tekort
20 JUNE 2006                              Page: 89 of 221


aan ambagsmanne omdat die opleiding so swak is – en die agb Mark

Lowe het daarna verwys – bring mee dat die gemiddelde ouderdom van

’n Suid-Afrikaanse vakman nou 54 jaar is. Wanneer hierdie kundiges

oor ses jaar aftree, gaan Suid-Afrika ’n krisis belewe soos nog

nooit tevore nie en dit kan gevare vir Asgisa inhou.



Die regering moet een ding besef en dit is dat regstellende aksie

nie oornag geïmplementeer kan word nie. Dit moet oor tyd gebeur,

sodat die onderwysstelsel en tersiêre opleidingsinstansies, asook

die proses van indiensopleiding in die werkplek, arbeid beskikbaar

kan stel van ’n hoë standaard. In dié tyd moet die ekonomie sy

bestaande geskoolde arbeid van alle rasse benut, maar die

blindelingse, volgehoue, ongrondwetlike implementering van

regstellende aksie deur die ANC-regering voorkom hierdie proses.



Dan betoog die VF Plus die afgelope week voor die Internasionale

Arbeidsorganisasie van die VN dat net diegene wat na 2 Februarie

1990 gebore is, van regstellende aksie vrygestel moet word. Wat van

al die ander bruin, swart en wit mense wat wil werk en wat voor 1990

gebore is? Die VF Plus vra met ander woorde nou dat net diegene wat

16 jaar en jonger is, van regstellende aksie vrygestel word, maar

studente wat tans die mark betree, is in 1983 en 1984 gebore. Wat

van hulle? Gooi die VF Plus hulle nou weg? Het die VF Plus dan nou

skielik geen gevoel meer vir ander blankes nie? Wil die VF Plus hê

hierdie afgestudeerde studente en die huidige bestaande ouer
20 JUNE 2006                                 Page: 90 of 221


geskoolde wit arbeid wat reeds sedert 1994 deur regstellende aksie

benadeel is, dat hulle dan nou ook die land moet verlaat?



Die DA vra ’n sonsondergang vir die eensydige regstellende aksie

waar alle rassegroepe nie in berekening gebring is nie. Ons moet nou

ophou om nog heeltyd van ’n Nuwe Suid-Afrika te praat, wat daaglikse

voorgesette regstellende aksie vereis. Suid-Afrika is nou twaalf

jaar oud. Suid-Afrika is nie meer nuut nie. Ons is nou ’n gewone

Suid-Afrika en al wat Asgisa nou nodig het, is dat die gewone Suid-

Afrika sy arbeidsmark moet oopmaak vir alle geskooldes van alle

rassegroepe, waar die produktiwiteit van die applikant die maatstaf

moet wees vir sy of haar aanstelling. Ek dank u. [Applous.]

(Translation of Afrikaans speech follows.)



[Dr S M VAN DYK: Hon Chairperson, the core of this debate is very

simple: we have a shortage of skilled labour in South Africa, whilst

the available skilled workers do not enter the labour market because

of affirmative action in the public sector and the statutory

prescripts for the private sector. I want to state clearly that

affirmative action is necessary to address the inequalities of the

past, but the problem lies with the process used by the government

to implement it and it clashes directly with Minister Manuel’s good

intentions with his fiscal policy to improve the economic growth

rate.
20 JUNE 2006                              Page: 91 of 221


Affirmative action forces business enterprises to reflect the

population composition in their race composition in the workplace.

This results in business enterprises simply not expanding their

production processes or replacing their labour with machinery – to

the detriment of job creation.



Government policy determines that affirmative action be applied in

the public sector. In most cases productivity is not taken into

account and comrades, friends and family are appointed. Skilled

people of all races are ignored. Many applicants are appointed with

falsified school and post-graduate certificates, but the economy is

cruel enough to expose unskilled labour’s poor productivity very

quickly. That is the reason we read daily news reports about poor

financial and administrative management in Public Service

departments at all three tires of government.



The consequence of affirmative action, which disregards the

principle of equal rights and opportunity, is that young skilled

labour is leaving the country. According to Solidarity it is a fact

that for every 1000 skilled labourers leaving the country, 70 000

other South Africans are left without an income. This emigration,

together with the shortage of artisans because the training is so

poor – the hon Mark Lowe referred to this - has resulted in the

average age of a South African craftsman being 54 years. When these

experts retire in six years’ time, South Africa will experience a

crisis as never before and this can pose a danger for Asgisa.
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The government must realise one thing and that is that affirmative

action cannot be implemented overnight. It must be implemented

gradually so that the education system and the tertiary training

institutions, as well as the process of in-service training in the

workplace, can make skilled labour of a high standard available.

During the interim period the economy must utilise the existing

skilled labour force of all races, but the ANC government’s

indiscriminate, sustained, unconstitutional implementation of

affirmative action prevents this process.



Then we have had the FF Plus demonstrating in front of the

International Labour Organisation of the UN this past week, asking

that only those born after 2 February 1990 be exempted from

affirmative action. What about all the other coloured, black and

white people born before 1990 who want to work? In other words, the

FF Plus is asking that only those who are 16 years old and younger

to be exempted from affirmative action. Students entering the market

now were born in 1983 and 1984. What about them? Is the FF Plus just

casting them aside? Does the FF Plus suddenly no longer have pathos

for other whites? Does the FF Plus want these graduates and the

present older skilled white workers who have been prejudiced by

affirmative action since 1994, to also leave the country now?



The DA asks for an end to the one-sided affirmative action in which

all the race groups are not taken into account. We must cease

continuously speaking of a New South Africa that daily requires that
20 JUNE 2006                              Page: 93 of 221


affirmative action be continued. South Africa is twelve years old

now. South Africa is no longer new. We are now an ordinary South

Africa and what Asgisa now requires is that the ordinary South

Africa open its labour market to all skilled labourers from all

races, where the productivity of the applicant should be the

criterion for his or her appointment. I thank you. [Applause.]]



Mrs L S CHIKUNGA: Chairperson, members of the executive, hon Members

of Parliament, fellow South Africans, it was in 1953 that Dr

Verwoerd said these words:



 I just want to remind the hon Members of Parliament that if the

 native in South Africa is being taught to expect that he will lead

 his adult life under the policy of equal rights, he’s making a big

 mistake. The native must not be subject to a school system, which

 draws him away from his own community and misleads him by showing

 him the green pastures of European society in which he is not

 allowed to graze.



With these notorious and immoral words, Dr Verwoerd introduced Bantu

Education to Parliament in 1953 - not in 1994 - which began the era

of the apartheid education system. The shortage of skills and lack

of capacity, therefore, is by no means an accident of history, but

the result of a policy that was planned and approved by the then

parliament and implemented by the apartheid government.
20 JUNE 2006                               Page: 94 of 221


It is important to say these things today because, conveniently,

those who then were opposition parties were not heard opposing these

policies. Yet, today, they are clearly heard opposing the policies

of the democratic government and conveniently raising these issues

as if they are this government’s making. We did not hear or see them

opposing apartheid policies, not because we are not capable of doing

so but because they did not oppose them.



Those who opposed apartheid policies were heard and seen. For

instance, women who 50 years ago matched to the Union Buildings in

Pretoria were heard and they were seen. They were women of all races

and from different social backgrounds who made a stand for human

rights. In the petition to Prime Minister Strijdom, those women

declared, “We shall not rest until we have won for our children

their fundamental rights of freedom, justice and security.” And we

heard them.



Indeed, they did not rest. It is on the shoulders of these great and

gallant women of our struggle that we stand. As we confront new

challenges in the struggle for both the emancipation of women and

the economic recovery of our country and continent, we draw

inspiration from them.



The economy of our country has been consistently growing for the

past seven and half years. It is true that sustained economic growth

hinges on the development of skills in South Africa and even on
20 JUNE 2006                              Page: 95 of 221


sourcing them abroad. But it is also true that many people,

particularly women and the youth, have not benefited that much from

our growing economy.



When it comes to a lack of skills and capacity, and to poverty,

unemployment and a lack of basic services, women and the youth are

the hard-hit groups. Whilst it is true that generally, in terms of

total enrolment, gender equity has been achieved in the higher

education system in that the proportion of female students has risen

from 43% in 1993 to 52% in 1999, gender equity continues to remain a

problem, particularly in the former technikons where female

enrolment increased from 32% in 1992 to 42% in 1993.



Furthermore, the spread of women students across different programme

areas is still uneven. Female students are clustered in the

humanities but are underrepresented in the sciences, engineering and

technology, and in business and commerce postgraduate programmes.

This probably is the result of less emphasis on gender equity than

on race equity by institutions of higher learning, and it has to be

corrected. In this regard, the National Plan for Higher Education

set out to transform higher education to ensure that universities,

technikons and colleges produce workers who are adequately skilled

to make a difference to the South African economy.



It is further encouraging to note that the government has not only

assessed the challenges but has actually correctly diagnosed them as
20 JUNE 2006                              Page: 96 of 221


shortages of skills. Our government has further prescribed treatment

in the name of Asgisa and even Jipsa. The intended effects of Asgisa

as treatment include helping women to play a bigger role in the

economy by helping them to get training and skills; making it easier

for them to get loans to start businesses; helping them to take part

in farming projects and projects such as the production of arts and

crafts; giving them better access to basic services, and getting

more women into the Expanded Public Works Programme.



The Joint Initiative for Priority Skills Acquisition – Jipsa - aims

to identify the urgent skills needed and to effect quick yet

effective solutions. At the launch of Jipsa, the Deputy President

Mrs Mlambo-Ngcuka said: “The most fatal constraint to shared growth

is skills, and it should be noted that skills are not just one of

the constraints facing Asgisa but a potentially fatal constraint.”



Such a statement indicates the seriousness with which the

government, particularly the Office of the Deputy President, views

the issue of the skills shortage. But, in sharp contrast, in 1945 a

Mr J N Le Roux said: “We should not give the native any academic

education. If we do, who is going to do the normal labour in the

community?” This is how they think even today. They dropped the ball

and they are complaining about the way it is bouncing.



Jipsa and Asgisa are not just talk-show programmes. Through the

programme of Jipsa, the Department of Public Works and the
20 JUNE 2006                              Page: 97 of 221


Presidency have co-ordinated a programme with regard to the United

Arab Emirates to secure sustainable placement of women in

infrastructure projects. Also, in the hospitality and finance

sectors, offers have been secured for the placement of women - 100

women and unemployed graduates are targeted. These women are poor

and are from poor communities. By the way, Asgisa also aims to

initiate interventions to address deep-seated inequalities and

target the marginalised poor. Another 120 women and youth are being

placed with the Bombela Consortium to be part of the Gautrain

project.



Jipsa also recognises the need for private-sector involvement. In

this regard, the Old Mutual Business School is but one private-

sector body that has joined, basing its project management

curriculum on the Jipsa development programme. The Development Bank

of Southern Africa and Old Mutual also launched the Hluma

Development Local Investment Agency, a multimillion-rand initiative

aimed at facilitating investment projects in marginalised areas of

South Africa. Such initiatives show us the importance of unity as a

nation in pursuit of the goal of a better for all.



In conclusion, as we approach our work as MPs, I believe we need to

pay particular attention to these and other transformation elements

embedded in Asgisa. The ANC is the architect of establishing the

framework for social change. Let us continue to lead this country.

Those who are hysterical need to be watchful if they neglect
20 JUNE 2006                               Page: 98 of 221


treatment. Rest assured, one day they will see the light and join

us.



But if they do not join us, they will continue to be reborn purists

who failed to effect change at many points in their privileged lives

in the apartheid South Africa. They failed the people and supported

immoral policies. The ANC led the people to freedom. As women in

South Africa we are encouraged by opportunities suggested by Asgisa

and Jipsa. We believe as women that indeed we must be at the centre

of economic activities. I thank you. [Applause.]



Ms S RAJBALLY: Chairperson, the core drive of Asgisa is to halve

unemployment and poverty by 2014, followed by achieving a 6%

economic growth rate between 2010 and 2014. However, according to

the South African Employment Report released in April, we need to

create 60 000 jobs a month to achieve that. What heightens this

concern is that, according to economists, we are currently only

delivering 30 000 new employees a month.



The MF does, however, support the view that addressing our skills

shortage through local skills development and foreign skills

recruitment is essential to promoting South African economic growth.



We do, however, express our concern regarding xenophobia and the

safety of foreign recruits. We request that avenues be exhausted to

find local skills first to address shortages, and in this regard
20 JUNE 2006                              Page: 99 of 221


skills that are considered to be in short supply need to be clearly

identified. These fields needs to be highlighted at tertiary

institutions as potential future careers. Further, we need to

question why these shortages exist and prevent the loopholes from

draining our scarce skills supply.



The MF agrees that we need to undergo a skills revolution to meet

Asgisa’s goals that will liberate South Africa from the shackles of

poverty. Thank you, Chairperson.



Ms L L MABE: Chairperson, I would also like to join those who say

that South Africa needs a skills revolution, a revolution that is

going to ensure that those who were disadvantaged in the past will

have a better life in future. Those who have been disadvantaged in

the past will therefore contribute towards economic growth in a

country and a democracy that we have fought for, a country where we

have ensured that we laid down all our efforts to ensure that our

children and those of us who are still living benefit from all the

achievements.



But I would also like to say: Thank you, Lowe. For the first time I

want to thank you.



An HON MEMBER: The hon Mr Lowe.



Ms L L MABE: It doesn’t matter.
20 JUNE 2006                             Page: 100 of 221


The HOUSE CHAIRPERSON (Mr G Q M Doidge): No, hon member. Let us

address each other as “hon”. [Interjections.]



Ms L L MABE: Hon Lowe, thank you. I would like to say thank you

again for bringing this matter to the fore so that people who do not

understand why it is important for us to have affirmative action and

acquire skills and for those who did not have skills to be given

skills, will from now on understand this much better. I hope that in

what you have said, you will also educate your colleague the hon Van

Dyk, but I will come to him at a later stage during my speech.



We have a challenge as South Africa. We have a challenge as

government in that the economic growth we have been experiencing has

developed some employment but only to a certain extent. And it

should be borne in mind that unemployment was very high because

disadvantaged people, the black people, were not given the necessary

skills that are needed to grow the economy. This was not a mistake;

it was a deliberate intention of the past government to ensure that

the majority did not take part actively in the development of the

economy in this country. They were only destined to be in a

bottomless pit with regard to development in this country.



I also wish I could have been there when some of the people were

favoured by the past polices to ensure that they acquired the skills

that they needed when some of us could not have that advantage.
20 JUNE 2006                             Page: 101 of 221


I would also like to indicate that the economic growth we have

experienced has, to a limited extent, impacted positively on poor

households. This is because members of these poor households do not

have the necessary skills to enter the economy and participate

actively. It is not because they do not have the will to

participate, but because they do not have the necessary skills.



I would like to say that we want to thank those business partners

that have joined hands with government to ensure that we capacitate

those people that have the will to take part and also to acquire

those skills.



I would also like to say with regard to the public infrastructure

development that government is prepared to roll out and the private-

sector investment programmes, that there is no way that these can be

successful without giving the necessary skills to the majority of

our citizens. Those black people who did not have access to the

necessary skills must get skills in the engineering field to become

artisans, and that they must have on-the-job training. Once they

have gone through further education and training, they must have on-

the-job training to ensure that they gain the necessary experience.



I would also not support those who say that the private sector must

go only for those who have the necessary experience. Where will

somebody get experience if the person does not have on-the-job

training? This is because that is where you get the skills; that’s
20 JUNE 2006                             Page: 102 of 221


where you get the experience. Therefore, I want to challenge the

private sector - those of you who have not bought into the idea of

taking on the unemployed graduates – to employ the unemployed

graduates, give them the necessary skills and you will see wonders

in that they will develop within a short space of time.



I would also like to indicate that the Dinaledi programme is a good

one, but it is important that the teachers, those educators, be

trained. Those educators, at the same time, must be willing to be

trained, because you can try to train somebody but that person will

be untrainable if he or she has not changed his or her mind-set.



So it is important that those teachers who are taken for training

must change their mind-set. They must realise that they play a

crucial role in ensuring that we acquire the necessary skills that

we need as a country.



At the same time it is important that those who were advantaged in

the past, those who have skills acquired because of the preferential

treatment of past policies, must ensure that they also change their

attitude. They must ensure that, during mentoring programmes, they

do not do it for the sake of doing it. They must do it with real

commitment, because there is no use doing it just to please

government and to claim or even to charge government as much as they

want to without transferring the necessary skills.
20 JUNE 2006                               Page: 103 of 221


We are quite aware that in most of the programmes, or in most of the

projects that government gives to consultants, these people do not

transfer the skills. It is a fact. There are those who do it with

passion, but there are those who want to frustrate the efforts of

government to ensure that people get on-the-job training and

mentoring to acquire the necessary skills. This may be done to

ensure that the same people have the same benefits continually.



I would also like to say that, with urgently needed skills, we fully

agree that those retired, skilled personnel need to be taken on

board. When they are taken on board, as I indicated earlier, they

must be willing to share the experience they have. They must be

willing to share the skills they have, rather than do it for the

sake of doing it and coming back after a few months or going to

another project, feeling that they are indispensable. That should

not be allowed. Nobody is indispensable.



It is important that those people who are retired and who will be

brought to bear must ensure that they share those skills. They must

also remember that they are South Africans. As South Africans, this

is for the development of our country and our economy, from which

their children and grandchildren will benefit.



It is no use saying that the whites who have skills need to continue

to dominate the economy. It does not help, because they are in the

minority. For our economy to grow, it needs the participation of the
20 JUNE 2006                             Page: 104 of 221


majority. I would also like to thank the private sector, for

instance KPMG and the DBSA, for what they are doing to assist us in

terms of acquiring the necessary skills we need as a country.



I cannot continue with my speech if I do not indicate that without

the training of women, without the training of the youth who are in

the majority, who have energy ... You know, when you educate a

woman, you educate a nation. If you don’t educate women, if you

don’t give them the necessary skills, who will put food on the table

for the family? This is because most households are led by women.

Most households depend on women. We can go anywhere, but the fact of

the matter is that our economy is dependent on the youth and on the

women. So let us give these two groups the necessary support and

training.



I would also like to say that unemployed graduates need to take it

upon themselves to take training offered to them seriously. I know

that in some areas when these people are trained, they do not have

the passion to go through that training. It is just a waste. We

understand fully that it might be because they have been unemployed

for quite a long time. But I say, never despair. Never despair,

regardless of how long you have been unemployed. Undergo that

training, benefit from of it and then you will contribute towards

economic growth.
20 JUNE 2006                              Page: 105 of 221


I would also like to say that all these things that are frustrating

government efforts to ensure that those who were disadvantaged have

access to the economy are the baggage of the past. Given the type of

education that we have received, the type of education which my

colleagues on the left supported with passion, I expect that right

now they should support the efforts that government is undertaking

with passion, because they are the ones who contributed to the mess

that we find ourselves in as a country.



I would also like to respond to the hon Mfundisi. Hon Mfundisi,

remember when you said that appointments were made on the basis of

political correctness? Don’t forget that during the Mangope regime,

that is what you were excelling in. Don’t forget that. For your

information, government appoints people on merit and qualifications,

not the way you did, as brothers and sisters and as a family.



Hon Van Dyk: representivity is important. There is no way that the

economy can continue being dominated by whites. We are in the

majority, and we must be represented in the economy as the majority.

I would also like to remind you that when you say that there is poor

financial management, yes, you are correct. There is poor financial

management in the departments. Where does it emanate from? It

emanates from the policies that you supported in the past. The

government of the ANC is working hard to ensure that it addresses

those problems that it inherited from you people.
20 JUNE 2006                             Page: 106 of 221


I’d like to also say that financial management is a challenge for

government and a challenge for Parliament. That is why we have a

problem with underspending. That is why we have a problem with

overexpenditure. But government must still be committed to ensuring

that we develop those skills. Those artisans you referred to as

being around 54 years old ...



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, your time has

expired.



Ms L L MABE: I thought that I had 20 seconds left.



The HOUSE CHAIRPERSON (Mr G Q M Doidge): You are on minus 21

seconds.



Ms L L MABE: Thank you. [Applause.]



The HOUSE CHAIRPERSON (Mr G Q M Doidge): Good try, hon member.



Mr C M LOWE: Thank you very much, Chairperson. I’d like to thank

everybody for participating and for the contributions that they have

made in the debate this afternoon.



Perhaps in future debates - and I hope that they will be on this

very important topic - we could have the Deputy President and the

Ministers of Labour and Education present. I know they are all very
20 JUNE 2006                             Page: 107 of 221


busy people, but I think this sort of issue needs their input and

certainly their attention.



I’d also just very briefly like to respond to the hon Chikunga to

say while it is important, Ma’am, that we honour the past, we can’t

continue to live in it. I’m even young enough to have been born

after Verwoerd and Strijdom had died. The democratic Ministry of

Education has been around for 12 years. I think we have to

realistically look up and face the problems in the Education

department and deal with them and stop blaming the past.



A skills revolution, by its very definition, therefore has to

include a change in the way we currently racialise our skilled jobs,

but also has to include a serious and focused national debate on

what is worth learning in schools and how schools should be teaching

these subjects which are meaningful, so that pupils leave school

with the ability to read well, to analyse what they have read, to

write effectively and to speak from a logical perception. Hopefully,

that national debate has started here today and the DA intends to

contribute fully to it. We all have to win in this debate.



Four things that government can do immediately to address the skills

crisis are to identify priority-scarce skills and exempt them from

the employment equity requirements, as I have mentioned. Secondly,

we need to set up a development fund to address the shortage in

qualified teachers and graduates schooled in mathematical and
20 JUNE 2006                               Page: 108 of 221


natural sciences. Thirdly, I have talked about scrapping the

wasteful and ineffective Seta bureaucracies and making regulated

demand-based skills development in education attractive to employers

through tax incentives. Fourthly, we need to simplify the process

and reduce the timeframes for work permit applications and approvals

for skilled foreigners wanting to work in South Africa.



By the Deputy President’s own reasoning, unless the skills

bottleneck is unblocked, the battle against poverty and unemployment

cannot be won. The DA is ready to stand shoulder to shoulder with

government in tackling our skills crisis and facing down

unemployment and poverty, but it will mean facing up to unpopular

truths, making hard choices and introducing radical solutions, but

it can and must be done. We cannot fail. Thank you. [Time expired.]

[Applause.]



Debate concluded.



      CONSIDERATION OF FIRST REPORT OF STANDING COMMITTEE ON PUBLIC

                      ACCOUNTS – INGONYAMA TRUST BOARD



      CONSIDERATION OF THIRD REPORT OF STANDING COMMITTEE ON PUBLIC

                    ACCOUNTS – DEPARTMENT OF HOME AFFAIRS



     CONSIDERATION OF FOURTH REPORT OF STANDING COMMITTEE ON PUBLIC

     ACCOUNTS - STATE INFORMATION TECHNOLOGY AGENCY (PTY) LTD (SITA)
20 JUNE 2006                                 Page: 109 of 221

      CONSIDERATION OF FIFTH REPORT OF STANDING COMMITTEE ON PUBLIC

                 ACCOUNTS - TRADE AND INVESTMENT SOUTH AFRICA



      CONSIDERATION OF SIXTH REPORT OF STANDING COMMITTEE ON PUBLIC

     ACCOUNTS - SOUTH AFRICAN NATIONAL ACCREDITATION SYSTEM (SANAS)



     CONSIDERATION OF SEVENTH REPORT OF STANDING COMMITTEE ON PUBLIC

               ACCOUNTS - SOUTH AFRICAN BROADCASTING CORPORATION



     CONSIDERATION OF EIGHTH REPORT OF STANDING COMMITTEE ON PUBLIC

               ACCOUNTS - ONDERSTEPOORT BIOLOGICAL PRODUCTS LTD



      CONSIDERATION OF NINTH REPORT OF STANDING COMMITTEE ON PUBLIC

      ACCOUNTS - INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA

                                   LIMITED



      CONSIDERATION OF TENTH REPORT OF STANDING COMMITTEE ON PUBLIC

                           ACCOUNTS - GODISA TRUST



    CONSIDERATION OF ELEVENTH REPORT OF STANDING COMMITTEE ON PUBLIC

                     ACCOUNTS - FINANCIAL SERVICES BOARD



     CONSIDERATION OF TWELFTH REPORT OF STANDING COMMITTEE ON PUBLIC

                ACCOUNTS - DEVELOPMENT BANK OF SOUTHERN AFRICA
20 JUNE 2006                                Page: 110 of 221

       CONSIDERATION OF THIRTEENTH REPORT OF STANDING COMMITTEE ON

       PUBLIC ACCOUNTS - AIRPORTS COMPANY SOUTH AFRICA LTD (ACSA)



       CONSIDERATION OF FOURTEENTH REPORT OF STANDING COMMITTEE ON

           PUBLIC ACCOUNTS - ACCOUNTING STANDARDS BOARD (ASB)



       CONSIDERATION OF FIFTEENTH REPORT OF STANDING COMMITTEE ON

        PUBLIC ACCOUNTS - NATIONAL AGRICULTURAL MARKETING COUNCIL



       CONSIDERATION OF SIXTEENTH REPORT OF STANDING COMMITTEE ON

               PUBLIC ACCOUNTS - GREATER ST LUCIA WETLAND PARK



      CONSIDERATION OF SEVENTEENTH REPORT OF STANDING COMMITTEE ON

     PUBLIC ACCOUNTS - SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE

                                   (SANB)




       CONSIDERATION OF EIGHTEENTH REPORT OF STANDING COMMITTEE ON

     PUBLIC ACCOUNTS - EXPORT CREDIT INSURANCE CORPORATION OF SOUTH

                            AFRICA LIMITED (ECIC)



       CONSIDERATION OF NINETEENTH REPORT OF STANDING COMMITTEE ON

                      PUBLIC ACCOUNTS - COMPETITION TRIBUNAL



       CONSIDERATION OF TWENTIETH REPORT OF STANDING COMMITTEE ON

               PUBLIC ACCOUNTS - SOUTH AFRICAN NATIONAL PARKS
20 JUNE 2006                             Page: 111 of 221




      CONSIDERATION OF TWENTY-FIRST REPORT OF STANDING COMMITTEE ON

       PUBLIC ACCOUNTS - SOUTH AFRICAN BUREAU OF STANDARDS (SABS)



     CONSIDERATION OF TWENTY-SECOND REPORT OF STANDING COMMITTEE ON

                 PUBLIC ACCOUNTS - SOUTH AFRICAN TOURISM




Mr N T GODI: Chairperson, comrades and hon members, it is my

singular honour and pleasure to once more present before the House a

set of reports adopted and recommended by the Standing Committee on

Public Accounts. I must indicate that we have not departed from the

Scopa tradition of working by consensus and these 22 reports were

adopted unanimously.



I must also express my gratitude to my Scopa colleagues, the staff

and the Office of the Auditor-General for the amount of effort they

put into our huge workload. I only wish the House could appreciate

more and better the heavy responsibility it has placed on their

shoulders.



Be that as it may, let me point out that the reports we are asking

the House to adopt can be put into three categories. The first

category is the annual report of the committee. The report contains

a summary of the committee’s activities for the past year. It is

about its general oversight activities, including hearings that were
20 JUNE 2006                             Page: 112 of 221


held - 16 in total; the training workshop organised by the

Association of Public Accounts Committees, Apac; and the Apac

conference held in the North West.



The committee also undertook a study tour to Mozambique and was

invited to the conference of the Australasian Council of Public

Accounts Committees. We are satisfied, as Scopa, that the report

correctly reflects on our activities for the year and that these

activities fell within the scope of our mandate.



The challenges for Scopa, however, remain the need to cover a

greater volume of work, to strengthen the qualitative aspect of its

work, to ensure follow-ups on recommendations and to have a high

impact. In order for all the above to be realised, there is an

urgent yearning for the capacitation of Scopa, viz we need more

staff and our committee members need support staff individually.



The second category consists of those entities and departments whose

financial management and administration have so far not lived up to

the expectations of the Public Finance Management Act and National

Treasury regulations. We are referring here to the first report on

the Ingonyama Trust Board, the third report on the Department of

Home Affairs, and the fourth report, which is on the State

Information Technology Agency. These entities and department have a

range of inadequacies identified in their financial reports that do
20 JUNE 2006                             Page: 113 of 221


not assist the objectives of financial accountability, rules-based

administration and proper service delivery.



Beyond the observations that Scopa has made, which are actually an

indictment, we have also made specific and tough recommendations

which, when adopted by the House, will have to be responded to by

the said entities and department.



We are happy to stress to the House that National Treasury has made

it an obligation for departments or entities to include in their

annual financial reports a paragraph on Scopa resolutions, in which

a department explains what it has done to respond to the Scopa

resolutions. Therefore the resolutions we are taking here are not in

vain or for their own sake.



The third category is of reports from the fifth to the twenty-second

report. These are reports whose financial audits are clean and have

nothing substantive to be concerned or worried about. We wish to

congratulate these entities on adhering to the Public Finance

Management Act and National Treasury regulations in their financial

management and administration. We hope that future audits will be

equally unqualified. We also hope that others will emulate their

good example.



As we present these reports to the House, we also want to stress

Scopa’s commitment to its oversight mandate despite the massive
20 JUNE 2006                                Page: 114 of 221


underresourcing of the committee. The laws that we pass in this

House must be implemented to the letter by all officials and the

House must express itself unequivocally in instances of

transgression.



The aspirations and rights of our people to quality service delivery

cannot be subverted by indifference and perversion of the laws that

we pass in this House. I thank you, Chairperson. [Applause.]



There was no debate.



The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move

that the reports be adopted.



Motion agreed to.



Reports accordingly adopted.



 CONSIDERATION OF REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS -

                 ANNUAL REPORT (JANUARY TO DECEMBER 2005)



There was no debate.



The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move

that the report be adopted.
20 JUNE 2006                             Page: 115 of 221


Motion agreed to.



Report accordingly adopted.




  CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE - DEPARTMENTAL

 EXPENDITURE FOR THE SECOND AND THIRD QUARTERS OF 2005-06 FINANCIAL

                    YEAR – JULY TO DECEMBER 2005



CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE - ANNUAL REPORT OF

                       JOINT BUDGET COMMITTEE




Ms L L MABE: Hon Chairperson, hon members, I would like to present

the report of the Joint Budget Committee for the year, and the

second and third quarter reports of departments.



I would like to start by indicating that the Joint Budget Committee

was constituted by a resolution of 2003 and was only convened at the

end of 2004. It also became a long process to develop a strategic

plan over the third term of Parliament and this was completed only

at the end of 2005. To some people’s minds, the Joint Budget

Committee is still a young committee. That is true. But, being a

young committee, it is faced with serious challenges and it cannot

relax because that it is still young and wait to develop. It must

grow in leaps and bounds, regardless of its age.
20 JUNE 2006                             Page: 116 of 221


Amongst the goals of the Joint Budget Committee is that there must

be a review of annual expenditure reports for effective and

efficient spending by departments. These are very important

objectives in the work of the Joint Budget Committee. Also, the

committee must provide meaningful recommendations aimed at improving

government spending by engaging the executive effectively in a

dialogue in terms of expenditure in various departments.



The basic principle is that Parliament’s role in the budget should

not disrupt the integrity of the budget or the integrity of the

expenditure system. But Parliament must play an oversight role – the

departments must be accountable to Parliament for the fact that

Parliament votes on the budgets that go to those departments.



As a result, this Parliament has taken it upon its shoulders to do

rigorous oversight this term in terms of service delivery, and a

priority for Parliament is that we must ensure that we have proper

and effective oversight over the departments. We must also monitor

their spending, and that is the responsibility of the Joint Budget

Committee. It will take on that task diligently and with passion.



I would also like to say that spending in departments is not as

expected. We have sufficient financial resources as government, but

spending is still lacking. For example, during the second quarter of

the 2005-06 financial year government departments fell behind in

current and capital spending. Capital spending was at 29,5% and
20 JUNE 2006                             Page: 117 of 221


current spending was at 43,8%. The question is: why should this be

the case? Is it because we have a shortage of skills in those

fields? That is a question we need to answer as members.



But that does not mean that spending should not be done as expected.

We expect that spending should be done. At the same time it should

be done not for the sake of doing it, but to ensure that we deliver

the necessary service to the people.



Some departments are low spenders, and I do not want to delve much

into that. Let us take Agriculture, for example. Agriculture is

there to ensure that the poor in the rural areas get access to basic

stuff, which is food, and to ensure that the rural poor get access

to the economy. If Agriculture does not spend, then what? That

therefore says something wrong is being done to those people who are

poor, who are looking to government to ensure that their lives

become better on a daily basis. And the issue is, as members we need

to challenge the Departments of Land Affairs and Agriculture. Why

are they not spending, when that money is supposed to go to the

rural areas to develop people?



At the same time, there are some high spenders. But when we look at

the high spenders, we must also check the following: high spending

on what? Are they just spending because it is the end of the

financial year, or is it because it is the third quarter and that is

why they are spending? There should be consistent spending
20 JUNE 2006                             Page: 118 of 221


throughout all four quarters of the year. If people have done their

homework, that would be the case, but if they haven’t during the

first and second quarters, as is reflected in our report, there will

be underspending. These matters will be elaborated on by my

colleague, the hon Dambuza.



I would also like to refer to the lowest spenders on transfer

payments – provincial and local government departments. When there

is low-level spending on transfer payments, that tells us that local

government is suffering as it does not get money. If local

government does not get money, who will ensure that services are

delivered to the people? Where will local government get money from

if the national departments are not transferring money or funds?

That is a challenge we need to follow up: why funds are not

transferred on time, rather than making local government a dumping

ground of money allocated to various departments.



The Department of Arts and Culture is a low-level spender on

transfer payments. The monies that must go to agencies that promote

culture and art do not get there on time. That is why they spend in

such a low-level way. As the Portfolio Committee on Arts and

Culture, we need to challenge them. Why are they not transferring

those funds to various institutions?



With regard to capital spending, one of the lowest spenders was

Minerals and Energy at 5%. I don’t want to elaborate on that one.
20 JUNE 2006                             Page: 119 of 221


I’d like to move to the third quarter. With regard to the third

quarter, spending on capital funding was, as usual and as in

previous years, very low. We say that we want to roll out

infrastructure. If spending on capital is not sufficient, how are we

going to roll out infrastructure? We need to make departments

account for why they are not spending on infrastructure.



At the same time, I have indicated that Land Affairs is one of the

lowest spenders. Land Affairs is responsible for ensuring that land

restitution becomes a success. If they do not spend, how will it be

a success? This is because we expect that 2014 there will be a great

margin - that the majority of blacks have access to land. So Land

Affairs must spend in terms of ensuring that land restitution

becomes a success.



One of the challenges we face as a committee is the absence of

dedicated members and dual membership of NCOP members in that they

are members of the select committee and the Joint Budget Committee.

When we have to convene our meetings it becomes a problem because

the same people have to attend meetings of two different committees.



Another challenge we face is the frequent restructuring of

committees: today it is this member, but after three or four months

it is another member. That member has been moved to another

committee, and after two or three months again there is a new

membership. That makes stability a problem in the committee.
20 JUNE 2006                             Page: 120 of 221


The other thing is the absence of a dedicated researcher. I am happy

that at last Parliament has appointed a researcher for the Joint

Budget Committee. But we suffered when the researcher was deployed

to the Pan-African Parliament. We do want to thank Parliament for

appointing that researcher.



Also, there is the fact that we want to regularise our relationship

with Scopa and the portfolio committees and select committees so

that as the Joint Budget Committee we can inform various portfolio

committees in terms of spending in their departments long before the

Auditor-General comes with a report. This means that on a continual

basis portfolio committees will follow up on policy implementation

through budgeting, and it is our intention to have that interaction.



There must be that close working relationship between the Joint

Budget Committee, Scopa, the portfolio committees and the select

committees. I am just challenging them in that when we go to them

and request that we have joint meetings, they must be willing to

share information. Thank you very much, Chairperson. [Time expired.]

[Applause.]



Dr S M VAN DYK: Chairperson, the report of the Joint Budget

Committee on departmental expenditure makes for depressing reading.

The budget committee discovered that departmental expenditure is

decreasing gradually and that there is more underspending than there

was in previous financial years. Total underexpenditure increased
20 JUNE 2006                             Page: 121 of 221


from R3,6 billion in the 2004-05 financial year to R5,4 billion in

the 2005-06 financial year.



The Auditor-General’s reports too are often disheartening. The

Auditor-General discovered that national departments were guilty of

R37,3 million in unauthorised and R46,3 million in fruitless,

wasteful and irregular expenditure in the 2004-05 financial year.



As far as departments are concerned, they have been faced with a

budgetary reform process since 1994. Two fundamental changes have

taken place in the budgetary process, namely the introduction of

zero-based budgeting and, secondly, the introduction of the MTEF.

Zero-based budgeting has forced departments to critically review

performance, and to motivate for allocations based on proven past

delivery. The MTEF has introduced stability in the budgetary process

and has enabled departments to plan with longer-term strategies in

mind.



But government has realised that it needs to build on these

achievements, and in order to realise the desired efficiency in

Public Service delivery they gave birth to the Public Finance

Management Act. The implementation of the first phase of the Act

focuses on the basics of financial management.



Maar, Speaker, die Ouditeur-generaal het nou bevind dat departemente

nog net tot ’n mindere mate aan die vereistes van die wet op
20 JUNE 2006                                Page: 122 of 221


effektiewe finansiële bestuur voldoen. [But, Speaker, the Auditor-

General has now found that departments comply only to a lesser

extent with the requirements of the law that deals with effective

financial management.]



The second phase of the Public Finance Management Act focuses on

best practice financial management. In this regard, I refer to the

generally recognised accounting practice of converting from a cash

basis of accounting to the accrual basis.



Tans is een van die grootste probleme by staatsdepartemente juis die

kontantbasis van begroting waar sekere departemente nie die werklike

stand van uitgawes aan die Ouditeur-generaal voorhou nie. Baie

uitgawes word steeds aangegaan deur departemente wie se begrotings

uitgeput is, om welke rede ookal, voor die einde van die finansiële

jaar en dan word die skuld net eenvoudig oorgedra na die volgende

boekjaar wat met die nuwe begroting betaal word, asof die dienste

ook eers in die nuwe boekjaar gelewer sou wees. In die verlede het

die SAPD, byvoorbeeld, al tot R400 miljoen se ou skuld sodoende

ongesiens oorgerol na die volgende jaar toe.



Hierdie toedrag van sake beteken dat klein sakeondernemings wat

dienste lewer aan departemente nie betyds betaal word nie en sukkel

om hulle werkers se insetkostes te betaal, en gevolglik om te

oorleef. En dit werk direk in op die goeie bedoelings van Asgisa.
20 JUNE 2006                             Page: 123 of 221


Met die “accrual basis” van rekenkundigheid sal die uitgawes reeds

as ’n las beskou word wanneer die diens gelewer is, al is die

rekening nog nie betaal nie en sal bogenoemde wanpraktyke in hierdie

verband voorkom word.



Dit word verwelkom dat die begrotingskomitee aangetoon het dat hy

die toedrag van sake by departemente onder die soeklig gaan plaas

ter beskerming van sakeondernemings en ter wille van

verantwoordelike departementele finansiële bestuur. Die DA steun

hierdie verslag. Dankie. (Translation of Afrikaans paragraphs

follows.)



[At present one of the biggest problems experience in at government

departments is indeed the cash basis of budgeting where certain

departments do not reflect the true state of expenditure to the

Auditor-General. Numerous expenses are still incurred by departments

who have exhausted their budgets, for whatever reason, before the

end of the financial year and then the debt is simply rolled over to

the following financial year to be paid from the new budget, as

though the services will also be rendered in the new financial year.

In the past the SAPS has, for example, rolled over up to R400

million’s old debt, unobserved, to the following year.



This state of affairs means that smaller enterprises that deliver

services to departments are not paid on time and they battle to pay
20 JUNE 2006                             Page: 124 of 221


their employees’ input costs, and consequently to survive. And this

is directly contrary to the good intentions of Asgisa.



With the accrual basis of accounting the expenditure will already be

reflected as a liability when the service is rendered, even if the

account had not been paid and in this way the above malpractices

will be prevented.



It is to be welcomed that the budget committee has indicated that it

will place this state of affairs at departments in the spotlight to

protect business enterprises and in the pursuit of responsible

departmental financial management. The DA supports this report.

Thank you.]



Mr S N SWART: Chairperson, hon ... Well, there’s no Minister here.

The ACDP notes that the Joint Budget Committee has a wide-ranging

and complex mandate, which includes monitoring, on a regular basis,

monthly published actual revenue and expenditure per department.



We also note that the committee held meetings with every department,

including the financially challenged Home Affairs. The question then

arises as to how the committee missed the very serious financial

irregularities in this department, notwithstanding various warning

signals issued previously by the Auditor-General and various reports

of the Standing Committee on Public Accounts, Scopa. One can also
20 JUNE 2006                             Page: 125 of 221


ask the question: Why didn’t the Joint Budget Committee recommend

Treasury intervention, as the Minister has now done?



We do, however, appreciate that the committee is in a developmental

phase and has to meet various challenges. It is an almost impossible

task to monitor the monthly expenditure of all government

departments, amongst the committee’s various other tasks. It is,

therefore, imperative that we, in our portfolio committees, should

also regularly monitor the monthly expenditure of our departments.

The ACDP will support this report. I thank you. [Time expired.]



The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Swart, did you say that

there was no Minister in the House?



Mr S N SWART: No, this Minister.



The HOUSE CHAIRPERSON (Ms C-S Botha): That particular Minister?

Thank you.



Ms B N DAMBUZA: Chairperson, members of the executive, hon members

...



... okwam, ngale njikalanga, kukugxila nje kumba wenkcitho-mali

ngamasebe karhulumente kunye namaphondo kwisigaba sonyaka

ophelileyo. [... my duty this afternoon is to dwell upon the issue

of expenditure by government departments and provinces last year.]
20 JUNE 2006                             Page: 126 of 221


In pursuit of its monitoring and oversight mandate, the Joint Budget

Committee is guided by a range of national policy and legislative

frameworks, including the Constitution, in terms of which budget

processes are required to promote transparency, accountability and

effective economic and efficient public-sector expenditure control;

the Public Finance Management Act, by means of section 32 reports -

monthly, quarterly and annually - and the terms of reference of the

committee itself, which put an emphasis on the committee to practise

its oversight over actual expenditure in the implementation phase.



In terms of National Treasury regulations, departments are required

to have spent 50% of their budget by the third quarter. However,

various observations have been made in this regard. National

expenditure performance indicates that by the end of the second

quarter of the past financial year departments had spent an average

of 47,5%, with the Department of Education being the highest spender

at 75,18%, followed by the Department of Social Development.



The Departments of Agriculture and Land Affairs have been identified

as the lowest spenders, followed by Statistics SA. By the end of the

third quarter, reports indicated that there was an increase in

overall expenditure to about 70,47%, with the Department of

Education being the highest at 91,9%. The Sport and Recreation

department was the lowest spender, with a record of 24,67%.
20 JUNE 2006                             Page: 127 of 221


In terms of current expenditure, departments’ overall expenditure

was about 67,77% at the end of the third quarter, with the

Department of Arts and Culture being the highest spender at 106,52%,

and the Department of Sport and Recreation being the lowest spender

at 40,17%.



The overall average transfers were 72,49%, with the Department of

Correctional Services at 151,18% in the third quarter, and the

Public Service Commission being the lowest at 0,5%. Overall average

capital expenditure stands at 54,33%.



Departments with the highest overall capital expenditure included

Parliament, spending 210,37% by the third quarter, followed by the

Science and Technology department at 186,83%, Agriculture and Land

Affairs at 158%, Social Development at 142% and Public Service and

Administration at 133,47%.



The departments with the lowest overall capital expenditure at the

end of the third quarter were Defence at 0,00%, Arts and Culture at

1,72%, Sport and Recreation at 12,01%, Minerals and Energy at 16,33%

and Transport at 17,35%.



Generally, departments had spent a significant portion of their

budgets by the end of the third quarter. It is also important to

highlight that the Department of Communications significantly

improved its expenditure trends over the past financial year.
20 JUNE 2006                             Page: 128 of 221


Abaninzi baya kukhumbula ukuba kunyaka ophelileyo eli sebe belibizwa

qho ukuba lize kuvela phambi kwekomiti. Yiyo loo nto siye sabona

ukuba masilincome xa libonakalisa inkqubela-phambili. (Translation

of isiXhosa paragraph follows.)



[Many will remember that last year this department was regularly

called to appear before the committee. That is the reason we have

considered it necessary to congratulate this department when it

shows improvement.]



In conclusion, in order to respond to a call by the hon President in

his state of the nation address, it is important to register that

the Budget plays a pivotal role in achieving broad government

objectives such as the eradication of poverty, and development.

Therefore, the committee has resolved to strengthen its monitoring

and oversight functions to ensure that departments’ expenditure

promotes and improves the livelihood of citizens, and stimulates

economic growth and development. The ANC supports the report. Thank

you. [Time expired.] [Applause.]



Mr R B BHOOLA: Chairperson, in view of the departmental expenditure

report of the second and third quarters of 2005-06, the MF is

pleased that the departments have spent a significant portion of

their budgets. With 47,50% having been spent by end of the second

quarter, indications show an intention to deliver.
20 JUNE 2006                             Page: 129 of 221


We are pleased with the Department of Education, which spearheaded

spending in that quarter with 75,18% of its budget. Further, as the

third quarter concluded, overall spending was at 70,47%. We view

expenditure for 2005-06 as fairly consistent. The MF does, however,

express concern regarding underspending and roll-overs.



Concerning the annual report of the Joint Budget Committee, we are

pleased with it but we would like to stress the importance of

oversight visits that we hope will be embarked upon this year. The

MF supports the reports.



Mr S L DITHEBE: Deputy Chair, thank you very much for this

opportunity to address the House. In fact, in trying to do so I have

realised that I have left part of my speech behind. [Interjections.]

It is indeed a very short speech. I think I have left it behind.



I would like to say with regard to the report of the Joint Budget

Committee - despite the strident voices we hear every time from this

side, which strident voices say that by virtue of its majority the

ANC will always sing the praises of the executive and ignore those

very uncomfortable areas in so far as the oversight by Parliament of

the executive is concerned – that the support of this report by all

parties today is itself evidence to the effect that the ANC will not

shy away from exposing difficulties wherever they are found and does

not see any contradiction in playing that role and, in fact, giving

credit where it is due.
20 JUNE 2006                             Page: 130 of 221


This is, in fact, what the ANC is doing today. That the chairperson

of the Joint Budget Committee can stand in front of this House and

talk about the most uncomfortable trends in expenditure in various

departments and, at the same time, where these departments have done

well, credit them, is in fact proof of what I have said earlier.



I must say that because June 16 was celebrated only a few days ago,

we must not forget that this month is still celebrated as Youth

Month. I would like to paraphrase Nicaraguan poet, revolutionary and

priest Carlos Castaneda, who said that we must always think of those

who died because we are where we are today because of their

sacrifices. In fact, our Constitution calls on us to honour those

who suffered and sacrificed in order for us to have the sweet

freedom and dignity we enjoy as a people today.



As we think of those who died, we must ask whether we are increasing

the availability of life-sustaining goods and services like health,

food, protection, shelter and other things. We must ask whether we

are raising the standard of living generally for everybody. I have

no doubt that many of us will answer in the affirmative, but I would

like to add that many challenges still abound. These challenges

include the Department of Education, which has been spending its

resources well recently, but is nonetheless confronted with vexing

situations of the kind contained in the report of the SA Human

Rights Commission, despite all the good intentions to utilise these

resources economically, efficiently and effectively.
20 JUNE 2006                               Page: 131 of 221


The Departments of Sport and Recreation, Land Affairs and

Agriculture are some of the culprits who must be strongly cajoled

into spending their allocated budgets, as has been mentioned by the

chairperson and other speakers. The lessons we draw from this

experience is that Parliament is endowed with immense powers to

scrutinise and oversee executive action.



The National Treasury has asked Parliament to debate the research

paper that I have here and that is called “Guideline for Legislative

Oversight Through Annual Reports”. Perhaps we might realise that we

do not as yet need powers to amend the budget. I know that there

might be very strong arguments in support of that, but I think

proposals and information that we are familiar with already that are

contained in here will make us realise that we not exercising those

powers as well as we should.



We shall continue to deepen our oversight work as the Joint Budget

Committee and work synergistically and nonantagonistically with

sector portfolio structures in this institution.



The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, your time has

expired.



Mr S L DITHEBE: In this age of hope, as we work and yearn for the

soul of the new nation, we shall always think of those who died,

even from these hallowed Chambers. I thank you. [Applause.]
20 JUNE 2006                                Page: 132 of 221


Debate concluded.



The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chair, we move that the

Reports be adopted.



Motion agreed to.



Reports accordingly adopted.



   CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON CORRECTIONAL

               SERVICES - VISIT TO PRISONS IN NORTHERN CAPE



   CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON CORRECTIONAL

SERVICES - VISIT TO DURBAN-WESTVILLE CORRECTIONAL CENTRE IN KWAZULU-

                                  NATAL




Mr D V BLOEM: Chairperson, Minister, Members of Parliament, the

phrase “overcrowding in Correctional Services” has become almost

part and parcel of the uniform of this department.



There is a view out there that one of the main causes of

overcrowding is the minimum sentence. Some people are arguing that

we must do away with the legislation in this regard. I don’t think

so. It is not true that this minimum sentence causes overcrowding.
20 JUNE 2006                             Page: 133 of 221


Let’s go to the heart of overcrowding. The problem is awaiting-trial

inmates. Let me argue further. Why do we have people sitting in

prison awaiting trial for as long as seven years before they can

appear before a magistrate or a judge? A recent example is a young

lady who has been sitting in Pollsmoor prison. She has been sitting

there for three years waiting to appear in court. She was 17 years

old when she was arrested, and she is now 20 years old. That is the

problem with regard to overcrowding, not the minimum sentence.



We are sitting with 50 000 awaiting-trial prisoners in our prisons.

When we visited Durban-Westville prison in KwaZulu-Natal we found

that, there alone, we had 5 000 prisoners awaiting trial.



The report on our visit to the Northern Cape is a bit different from

other reports. In the conclusion of the report we say that we are

very impressed with the good communication channels between all the

role-players in the criminal justice cluster in this province. This

is the only way to address the problem of overcrowding in our

prisons. In all five towns, from Kimberley to Upington, everybody is

working together and looking for solutions to this problem:

magistrates, police, prosecutors, legal aid boards and NGOs - all of

them are involved.



We know that there will always be challenges, and I want to mention

some of these. They are danger allowance, recruitment of new
20 JUNE 2006                             Page: 134 of 221


members, the morale of staff, lack of females in management

positions, and the high number of people filling acting positions.



Let me deal with one of these challenges, and that is recruitment.

In Kimberley and Upington we held izimbizo. People, especially the

youth, complained about the process of applying for employment in

the department. They said that some of them filled in forms every

time vacancies were advertised, but that they were not short-listed.

They claim that some people apply only once and are successful. They

want to know what criteria are being used to select these people. We

must give urgent attention to this concern, because people are

raising this problem all over and not only in these two towns.



The committee visited Durban-Westville prison and found that the

biggest problem there was overcrowding, as I said earlier on.

Overcrowding ranges from 131% in the youth centre to 228% in Medium

B alone. A very serious challenge in this prison is the high number

of HIV/Aids cases. Aids is prevalent amongst the majority of

inmates.



Regarding the inmate tracking system that was installed earlier last

year, it is of great concern to the committee that the equipment got

lost. That equipment consisted of 8 292 tags worth R7 million. The

problem has not been addressed as this loss was reported in February

last year. The total cost of this contract amounts to R28 million.
20 JUNE 2006                             Page: 135 of 221


Under very difficult circumstances the staff of the department are

doing their best and are always willing to give their best. I want

to tell members of this House that we have very loyal, dedicated and

honest members in this department. There are only a handful of

corrupt and rotten apples.



On behalf of the committee, I want to thank Commissioner Mti, the

regional commissioner of the Northern Cape Mr Modise, and the area

commissioner of KwaZulu-Natal Mr Manana, for the good work that they

are doing in this area. It is an honour for me to present these two

reports to the House.



Let me deal with an issue regarding the privileges of inmates. I

have said many a time that we must really look at the privileges. We

can’t have murderers, criminals and rapists enjoying the very same

privileges as all other inmates in prison. We must take them and say

to them, as the Minister said last week when two criminals were

arrested that had escaped from Middledrift prison, that they are

going to spend the rest of their lives in Kokstad. I fully support

you, Minister. We must show these people that we are sick and tired

of escapes and of threats to our law-abiding citizens.



Minister, in some of these prisons these inmates think that they are

free. They want to control members, law-abiding citizens who have

done nothing wrong. They are there to dictate. Even if a member is

responding, they are going to be charged. I think we must really
20 JUNE 2006                              Page: 136 of 221


address that. Many of the members complain and say that these

inmates now have “better privileges than us”. Minister, we must

address these things.



These people have committed serious crimes outside. When they land

up in prison, they think that they will, all of a sudden, know the

Constitution and their rights in prison, because they are sitting

there with a Constitution. They say, “this and that are my rights”.

That is nonsense.



We must think first. We are not going to interfere with their

constitutional rights, but we must take away some of their

privileges. They can’t sit and watch television and have a nice time

in prison. It must be taken away. They must feel that they have done

something wrong. [Interjections.] You are next. We are going to put

you in jail and you are not going to talk like this. You are going

to be very ... [Inaudible.] ... in prison. We are going to deal with

you. [Interjections.]



The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Bloem, your time has

expired, on that note.



Mr M J ELLIS: Madam Chair ...



Mr D V BLOEM: No. There are still 20 seconds. I can see the clock,

Chairperson. Let me deal with Mr Ellis.
20 JUNE 2006                             Page: 137 of 221


The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Bloem, I am in the Chair

here and you will speak through me. If I have decided that your time

has expired, it has expired.



Mr D V BLOEM: I thank you very much, Chairperson. [Applause.]



Mr M J ELLIS: Madam Chair, does that mean that my point of order

falls away?



The HOUSE CHAIRPERSON (Ms C-S Botha): It does. Thank you.



Mr M J ELLIS: I am sure I stood up before he actually had finished.



The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Deputy Chief Whip, please

say that again.



Mr M J ELLIS: I said that I’m sure I stood to give a point of order

before he had finished.



The HOUSE CHAIRPERSON (Ms C-S Botha): You certainly did. But I

hastened the end of his speech. So it was my decision to stop the

speech, and you spoke after I had told him to stop.



Mr M J ELLIS: Well, I think you did us a favour by ending his

speech, Madam Chair. So I will sit down. [Laughter.]
20 JUNE 2006                             Page: 138 of 221


Mr W P DOMAN: Hon Chairperson, Minister, members, on behalf of my

bench-mate the hon James Selfe, I want to apologise that the DA was

unfortunately unable to attend the oversight visit to the Northern

Cape, but participated in the three-day visit to the Durban-

Westville Correctional Centre.



Durban-Westville is a vast complex, consisting of five prisons,

accommodating about 12 500 inmates, which is roughly double its

capacity.



The overcrowding leads to a number of problems. The staff are

overworked and stressed, the environment in which they work is very

dangerous, caseloads are impossibly large, and the lack of physical

space and the shortage of professional staff inhibit opportunities

for rehabilitation.



There are other problems too. The lack of promotion opportunities

and the absence of subsidised housing lead to staff demotivation.

But other problems pale into insignificance measured against the

reality of overcrowding.



As usual, overcrowding is everyone’s problem and therefore also no

one’s problem. The committee heard that the diversion programmes

were problematic, owing to the absence of information about previous

convictions, while the magistrates reported that they had never

received applications in terms of section 287(4) of the Criminal
20 JUNE 2006                                Page: 139 of 221


Procedure Act to convert sentences into those of correctional

supervision.



It is very frustrating when Parliament establishes mechanisms to

release inmates in a controlled and responsible way, but these

mechanisms are ignored or rendered useless.



More worrying still was the situation around the inmate tracking

system. This is an excellent system – in theory. Each inmate wears

an electronic tag, which allows the staff to determine who is in the

facility without having to do a roll call, and whether the right

inmate is in the right part of the facility at the right time. This,

of course, depends on the system working.



When the committee visited Medium A in which the system has been

installed, the system was not working terribly well. It was unable

to show tell members of the committee who was in a particular

section. Moreover, and I must repeat what the hon Bloem said, a

total of 8 292 tags valued at some R7 million were lost during the

implementation period of this project.



Despite having commenced in November 2004, the system has not been

fully implemented. It seems as if some staff members have actively

resisted or even sabotaged the implementation. If true, this is a

scandalous situation that the public accounts committee should

investigate thoroughly.
20 JUNE 2006                             Page: 140 of 221


The most tragic aspect of the visit was listening to nurses describe

the challenges they face in dealing with the large number of Aids-

infected inmates. Huge problems are encountered in rolling out ARVs

in the prison environment, while many people who ought to be

released on medical discharges cannot be released because their

families will not accept them or because the judges are unwilling to

grant the applications.



The committee, however, should be congratulated on the active way in

which it tackles its oversight responsibilities. The DA supports the

report and the recommendations.



Maar aangesien die besoek al verlede jaar plaasgevind het, is ons

teleurgesteld dat die aanbevelings nie intussen ten volle ingestel

is nie. Die departement sal hieraan moet aandag gee. [Tyd

verstreke.] [Applous.] (Translation of Afrikaans paragraph follows.)



[But considering that the visit already took place last year, we are

disappointed that the recommendations have not yet been fully

implemented. The department will have to attend to this. [Time

expired.] [Applause.]]



Mrs S A SEATON: Madam Chair, hon members, the IFP supports the

report of the portfolio committee on its oversight visits to prisons

in the Northern Cape in October 2005 and to the Durban-Westville

Correctional Centre in KwaZulu-Natal in March 2006. We fully align
20 JUNE 2006                             Page: 141 of 221


ourselves with the concerns expressed in these reports and support

the recommendations as well.



I share the concerns of Mr Bloem with regard to the overcrowding,

but I unfortunately do not have the time to go into it. But,

certainly, our staff have tremendously trying conditions to work

under, and I think we need to just say to them that we do support

them and we do understand.



I was also unfortunately unable to attend the Northern Cape visit

but did attend the Durban-Westville one. As far as the Durban-

Westville Correctional Centre is concerned, the IFP shares the

frustration of the committee particularly with regard to the

implementation of the inmate tracking system and the centre where it

is merely used for identification purposes - that’s all that it’s

being used for. It is hugely problematic that lost equipment, as

we’ve heard, amounted to some R7 million, and that the matter had

not been addressed for a long time after it had been reported.



The biggest shock, however, was that we were informed that the

inmate tracking system was functional, but this was not the case, as

we’ve already heard from Mr Doman, when the committee visited the

database room at the centre. The IFP therefore wholly supports the

committee’s insistence that the department must please come back and

report to us within three months after today’s adoption of the

report.
20 JUNE 2006                             Page: 142 of 221


In conclusion, I wish to raise a concern that the committee’s report

on the visit to the Northern Cape, which took place in October last

year, is only now being considered by this House. This is far too

long and we need to ensure that our reports are dealt with

timeously. The IFP does support the reports and the recommendations.

I thank you.



Mr S N SWART: Deputy Chair, the ACDP shares the concerns regarding

the high numbers of awaiting-trial prisoners who do not pose a

danger to society, but who cannot afford the relatively low bail

amount, in question, which may be as little as R100. Overcrowding

remains a problem, as has been pointed out, and is the root cause of

health problems and the spread of diseases such as tuberculosis and

HIV/Aids.



The ACDP also raised our concerns regarding the capacity problems

experienced by community corrections. We note that complaints were

raised by officials in the Northern Cape about a lack of staff and

vehicles which, according to officials, hampers their ability to

monitor parolees and probationers effectively.



However, hon Minister, there is good news. We particularly welcome

the restorative justice activities at various prisons, which create

or build a better relationship between the offender and the

aggrieved party. A highlight, mentioned in one report, was the

handing over of a house that was built by inmates to a victim of
20 JUNE 2006                               Page: 143 of 221


crime. To the department we say well done in that regard. The ACDP

will support these reports. I thank you.



Ms S RAJBALLY: Chairperson, Minister, in view of the portfolio

committee’s report regarding their visit to prisons in the Northern

Cape, the MF seeks that the Northern Cape and Free State be

separated as correctional service regions and that each be given a

suitable budget to address the sector’s needs. The overcrowding of

prisons, minimal resources, staff constraints and minimal funding

appear to be the key problems in these prisons.



We are pleased to note that there is good communication between all

components of the criminal justice cluster in this region. We call

for the challenge to be addressed through better funding. Further,

we call on the SA Police Service in these regions to clamp down on

offenders in terms of gangsterism, rape and murder.



As for the correctional facility in Durban-Westville, similar

constraints of serious overcrowding, minimal resources and staff

shortages are noted. These need to be addressed earnestly if we are

to deliver South Africa from its scary crime infestation. We would

appreciate some input on this facility’s expenditure traits to

analyse how to address its shortfalls. The MF supports the report.

Thank you. [Time expired.]
20 JUNE 2006                               Page: 144 of 221


Mr L M GREEN: Chairperson, the FD commends the chairperson as well

as all the members of the Correctional Services committee who

undertook the trips to both the Northern Cape and KwaZulu-Natal,

visiting several prisons in these provinces. The detailed reports

are evidence of much hard work done. Well done!



The FD is particularly encouraged by the restorative justice

activities at the Kuruman Correctional Centre, especially the good

example set by the inmates of this centre in building a house for a

victim of crime in this area.



We would like to encourage the Minister and the Department of

Correctional Services to continue to explore creative ways to

increase restorative justice activities.



The FD supports all the recommendations in this report, especially

the one that says that no person shall be kept in prison longer than

the time allocated in his or her sentence. It is criminal to keep

people in prison if they have served their time, especially if we

note that the report says that the Northern Cape prisons have 173%

occupancy. The FD supports this report. I thank you.



Mr E T XOLO: Deputy Chairperson, the visit to the prisons in Durban-

Westville and the Northern Cape was informed by the need to have an

insight of prison situations as part of the committee’s ongoing
20 JUNE 2006                             Page: 145 of 221


oversight. As revealed in the reports, there are challenges and

achievements in the sphere of imprisonment.



It is proper to say that in line with ANC policies the Department of

Correctional Services is committed to rehabilitation programmes. The

reports show that various programmes rendered are informed by the

diverse needs of different offenders. Some of the cases in both

prisons are dealt with through restorative justice in terms of which

the victim and the offenders are allowed to resolve disputes through

negotiations facilitated by a professional officer. These approaches

should be informed by the need to reduce the backlog and take into

account the nature of crimes and the ages of the offenders in order

to reduce overcrowding.



Ngakolunye uhlangothi, imibiko yalo Mnyango isisibonise isidingo

esikhulu sokubambisana nomphakathi ekuhleleni ukuthi kube khona

izinhlelo ezenziwayo, ikakhulu uma kukhona abazokhululwa ejele,

ukuze kungabe kusenzeka ukuthi bazithole sebebuyela ejele futhi.

Lezi zinhlelo zenzelwa ukuthi bemukeleke kahle emphakathini.



Olunye uhlangothi lugxile ekuthini lokho isiboshwa esikufunde

sisesejele, okunjengomsebemzi wezandla nemfundo yolwazi, sikwazi

ukuphila ngakho; nokuthi abamabhizinisi bakwazi ukuqasha labo

abakade beboshiwe, noma bazakhele owabo umsebenzi bangabheki ukuba

wokhamisa ngithele. Ngokwenza kanjalo labo bantu baba ngamalunga
20 JUNE 2006                             Page: 146 of 221


omphakathi ophilayo nowethembekile. (Translation of isiZulu

paragraphs follows.)



[On the other hand, the reports of this department show that there

is a huge need to collaborate with the public in planning programmes

to be put in place, particularly if there are inmates who are due to

be released from prison, so that they don’t return to prison. These

programmes are undertaken to make sure that they are reintegrated

with the community.



The other part is focusing on what an inmate has learned while in

prison, which is craft skills and skills knowledge and to be able to

earn a living with such skills. Businesspeople would be able to

employ such ex-inmates or they can open their own businesses and

avoid being beggars. By so doing, these people can be members of a

loyal and good society.]



All forms of discrimination against offenders should not be allowed.

It is noted in both reports on the visited prisons that the HIV/Aids

pandemic is on the rise. In this regard, the deaths of ill inmates

in prison should be avoided as stated in the Correctional Services

Act, Act 111 of 1998. This calls for more professional staff in

order to assess health-related matters, make appropriate

recommendations and take preventive measures.
20 JUNE 2006                             Page: 147 of 221


In conclusion, it is noticeable in the reports that holistic

approaches are of vital importance to ensuring the success of

rehabilitation goals. This requires the involvement of the

community, business, police members, NGOs, judicial officers and

even the Department of Social Development.



Above all, recommendations made by the portfolio committee should be

implemented and there should be a follow-up visit resulting from

previous visits. This will ensure that visits do not just take place

for their own sake, but that a proper process is put in place for

the future. The ANC supports this report. I thank you. [Applause.]



The MINISTER OF CORRECTIONAL SERVICES: Chairperson, hon members, I

must first of all thank the portfolio committee. We do appreciate

the oversight work of the portfolio committee, which greatly assists

us in fulfilling our mandate. It is very ably led by the hon Dennis

Bloem. Thank you to him and all the members of the portfolio

committee. There are always fireworks when my chairperson comes to

this podium. There are also fireworks when he goes to the prisons on

visits, because my officials know that he won’t take anything lying

down. He’ll make sure that things get moving.



What you have done today as Members of Parliament is that you have

actually contributed to an operation we have in Correctional

Services called Operation Masibambisane. As you’ll be going out to

the different areas where you live, please continue visiting our
20 JUNE 2006                             Page: 148 of 221


centres and make sure that as you visit our centres you follow up on

some of the things that are in these two reports. It’s always very

heartening to hear members say, “I tried to visit or I visited this

centre.”



I’ve just been talking to Mawa Ramgobin about restorative justice. I

didn’t know that he was so interested in it. He came to talk to me

about it. So, when you hear it mentioned here, you must know that

lots of people are involved and want to help. Judy Chalmers also

approached – she wants to visit a prison in her constituency. I

really appreciate that kind of approach in which our members go out

- Mr Mlangeni - to visit these centres. Xa bebona wena isithwalandwe

[When they see you as a man of great deeds] and having known what

prison life is like, they will gain some insight into what they can

come out with in prison, particularly the juveniles. [Applause.]



Let me quickly go through some of the issues. With regard to the

inmate checking system in Durban-Westville, I would like to assure

the committee that the problems around this system are being

attended to with more vigour now. We’ve identified the culprits who

sabotaged the system by stealing those 8 292 tracking tags or

gadgets at the Durban Westville Correctional Centre, and they are

facing disciplinary action.



The pilot programme is still going on, because we want to make a

success of it, and it can then go to other centres. All the gadgets
20 JUNE 2006                                Page: 149 of 221


were recovered and we’re now dealing with the thugs who stole those

gadgets. [Applause.]



In terms of professionals – nurses, psychologists and other

professionals we have spoken about - the underlying problem with

regard to this in our centres is the issue of remuneration. It’s

very difficult because we’ve got to deal with other departments in

terms of their remuneration. This is a matter that we’ve decided to

prioritise during this financial year so that we attract the best

skilled professionals to our centres.



The recruitment drive is aimed at ensuring that the centres that

have a dire shortage of such professionals are taken care of. We’re

also reviewing their salary packages so that we are able to retain

them within the department.



There are rehabilitation problems in our centres, and it is

compulsory - I’ve taken that decision - for all juveniles to attend

rehabilitation programmes. If they do not, they then get penalties.

So, regarding the privileges that you were talking about that we

should take away, chairperson, please help me so that we can do

those things. Take away those privileges.



No offenders are going to tell us what to do. We did not collect

them from the streets. We didn’t invite them to come to where they

are now. They committed crimes. So we should treat them as such -
20 JUNE 2006                             Page: 150 of 221


without being inhumane, without stripping them of their dignity,

without taking away any of their constitutional rights, but they

should know who is who in the zoo. [Applause.]



As stated previously, the department is currently in the process of

conducting an HIV and Aids prevalence survey and we do hope that

when we finish that we can bring those statistics here to the House

and let the House know what the situation is in terms of HIV and

Aids.



Meanwhile, other comprehensive HIV and Aids treatment initiatives,

which we are conducting jointly with the Department of Health, are

proceeding. These include further accreditation of three

correctional centres. Three of our centres have been accredited as

ARV sites in addition to Grootvlei in the Free State and Qalakabusha

in Pietermaritzburg.



Regarding the release of terminally ill inmates, I have publicly

stated that we are considering the release of terminally ill inmates

so that their welfare could be better taken care of by their

relatives. Those without relatives to take care of them could be

placed in government health care centres so that they can go home

or, if they are going to die, they can at least die in dignity and

not behind bars. We have relayed this matter to the Parole Review

Board and to the National Council of Correctional Services, which is

helping me.
20 JUNE 2006                             Page: 151 of 221


We are improving our internal communications. We are also looking at

the staff morale. That is why we had internal promotions this year

to try to lift the morale of our staff members, and we will continue

doing so, even this year. We took them from Grade 3 to Grade 2 and

then to Grade 1. We will start some time this year from Grade 1

upward, and try to get them promoted. [Applause.]



I just want to say one thing about recruitment. It has been a

problem. The Jali commission, which we spoke about today – this

document - has indicated that we need to outsource our recruitment

drive because our members interfere with that. We’ve done exactly

that. We have two companies that are doing that. But I can assure

members of one thing: it still takes a long time to get to the stage

at which you get all the information you want, because of the

numbers of people who apply to Correctional Services – who want to

work for us.



With regard to overcrowding, Nicro had a workshop during the past

two days, a colloquium, where our lovely Deputy Minister

participated in that programme. She assisted in that colloquium,

which sat for two days. Our new Acting Judge, Judge Nathan Erasmus,

also participated, and we are hoping to get good things from that

process.



Lastly, we are overhauling community corrections. It needs a total

overhaul. I’m sitting on the Chief Deputy Commissioner for
20 JUNE 2006                             Page: 152 of 221


Correctional Services, Tebogo Motseki, to make sure that we overhaul

community corrections so that judges can have confidence in

community corrections and then divert those that don’t deserve to be

in prison into that system. We need to make that system a good one.

[Applause.]



Separate regions? Not yet. We still are restructuring a lot of

things, so we cannot go into anything about separate regions at the

moment because we are still building capacity.



I must, as I stand here, thank the former Minister because he

started the Jali commission. He went to the President. I must thank

him for that, and it has come out with good recommendations. We will

try to really look at those recommendations and make sure that we

apply them - recommendations that the portfolio committee has made

on these two reports, and I’ve read the reports. We will, as a

department, make sure that we stick to whatever recommendations you

have given us. Please do not get tired of calling us to the

portfolio committee to report on the work that we do. We don’t feel

bad about that. Actually, to me, that is operation Masibambisane.

[Applause.]



The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Minister, will you please

take your seat. Hon member?
20 JUNE 2006                             Page: 153 of 221


Mr A M MPONTSHANE: Hon Chair, can we as the IFP acknowledge that

compliment from the Minister?



The HOUSE CHAIRPERSON (Ms C-S Botha): Well, you have done so. Thank

you. Hon Minister?



The MINISTER OF CORRECTIONAL SERVICES: Well, hon Ben belongs to the

IFP. So, it stands to reason that you can take that compliment for

yourselves.



I also want to thank the members of staff all over the country, and

to thank the senior management of the department who help when these

visits take place, who go with the team and make sure that they are

part of the team and know the problems that we have. Correctional

Services is not an easy department – it does not need a softy to try

to run it; it needs a bastard. Thank you. [Applause.]



Debate concluded.



The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move

that the reports be noted, and in saying that we want to make it

clear that it’s not for any disagreement with what is in the reports

or the recommendations. I think we’ve indicated that we also fully

support those recommendations. But the problem with the time-lag has

been alluded to in the debate, and we feel that there would be
20 JUNE 2006                                 Page: 154 of 221


technical problems in adopting the reports as opposed to noting

them. That’s the only reason we move that they be noted. Thank you.



Motion agreed to.



Reports accordingly noted.



  CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT IN TERMS OF

  SECTION 231(2) OF THE CONSTITUTION - CONVENTION ON INTERNATIONAL

                    INTERESTS IN MOBILE EQUIPMENT



  CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT IN TERMS OF

                SECTION 231(2) OF THE CONSTITUTION -

 CONVENTION FOR THE UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL

                             CARRIAGE BY AIR



There was no debate.



Convention on International Interests in Mobile Equipment and

Convention for the Unification of Certain Rules for International

Carriage by Air approved.



The House adjourned at 17:42.

                                __________



           ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
20 JUNE 2006                                               Page: 155 of 221


                                    THURSDAY, 15 JUNE 2006




CREDA PLEASE INSERT REPORT- Insert T060615E-insert – PAGES 1429-1441



                                     MONDAY, 19 JUNE 2006



ANNOUNCEMENTS



National Assembly and National Council of Provinces



The Speaker and the Chairperson



1.   Classification of Bills by Joint Tagging Mechanism:



     (1)   The Joint Tagging Mechanism on 19 June 2006 in terms of Joint Rule 160(6) classified the

           following Bill as a money Bill:



              (a)   Small Business Tax Amnesty and Amendment of Taxation Laws Bill [B 14 –

                    2006] (National Assembly – sec 77).



     (2)   The Joint Tagging Mechanism on 19 June 2006 in terms of Joint Rule 160(3) classified the

           following Bill as a section 75 Bill:
20 JUNE 2006                                                     Page: 156 of 221


                (a)   Second Small Business Tax Amnesty and Amendment of Taxation Laws Bill [B

                      15 – 2006] (National Assembly – sec 75).



National Assembly



1.   Referral to Committees of papers tabled



     1.   The following paper is referred to the Portfolio Committee on Home Affairs for

          consideration and report. The Report of the Auditor-General on the Financial Statements is

          referred to the Standing Committee on Public Accounts for consideration:



          (a)     Report and Financial Statements of Vote 4 – Department of Home Affairs for 2004-

                  2005, including the Report of the Auditor-General on the Financial Statements for

                  2004-2005 [RP 53-2006].



     2.   The following paper is referred to the Portfolio Committee on Justice and Constitutional

          Development:



          (a)     A report in terms of section 9(5)(b) of the Magistrates’ Courts Act, 1944 (Act No 32

                  of 1944), a list containing information with regard to vacancies in the offices of

                  magistrates which have remained unfilled for a continuous period exceeding three

                  months as on 31 March 2006.
20 JUNE 2006                                              Page: 157 of 221




   3.   The following paper is referred to the Portfolio Committee on Justice and Constitutional

        Development, the Portfolio Committee on Safety and Security and the Joint Standing

        Committee on Intelligence:



        (a)   Proclamation No R67 published in Government Gazette No 28282 dated 29

              November 2006: Commencement of sections 40 and 62(6) of the Regulation of

              Interception of Communications and Provision of Communication-Related

              Information Act, 2002 (Act No 70 of 2002): Amendment of Proclamation.



   4.   The following paper is referred to the Portfolio Committee on Science and Technology

        for consideration:



        (a)   The Corporate Strategy of the Department of Science and Technology for (2006/7)

              2005/6 to 2008/9.



   5.   The following paper is referred to the Portfolio Committee on Public Service and

        Administration for consideration:



        (a)   Report of the Public Service Commission (PSC) on the State of the Public Service for

              2006 [RP 39-2006].



   6.   The following papers are referred to the Portfolio Committee on Safety and Security:
20 JUNE 2006                                               Page: 158 of 221


        (a)   Report of the Independent Complaints Directorate (ICD) for January 2004 to

              December 2004, in terms of section 18(5)(c) of the Domestic Violence Act, 1998 (Act

              No 115 of 1998) [RP 209-2004].



        (b)   Report of the Independent Complaints Directorate (ICD) for January 2005 to

              December 2005, in terms of section 18(5)(c) of the Domestic Violence Act, 1998 (Act

              No 116 of 1998) [RP 56-2006].



   7.   The following paper is referred to the Portfolio Committee on Environmental Affairs

        and Tourism for consideration:



        (a)   Strategic Plan of the Department of Environmental Affairs and Tourism for 1 April

              2005 to 31 March 2010, 2006/07 Review.



   8.   The following paper is referred to the Portfolio Committee on Provincial and Local

        Government for consideration:



        (a)   Medium Term Performance Plan of the Department of Provincial and Local

              Government for 2006 to 2009.



   9.   The following paper is referred to the Portfolio Committee on Public Enterprises for

        consideration:



        (a)   Strategic Plan of the Department of Public Enterprises for 2006.
20 JUNE 2006                                              Page: 159 of 221


   10. The following paper is referred to the Portfolio Committee on Minerals and Energy for

        consideration and report. The Report of the Auditor-General on the Financial Statements is

        referred to the Standing Committee on Public Accounts for consideration:



        (a)   Report and Financial Statements of Mineral Technology (Mintek) for 2004-2005,

              including the Report f the Auditor-General on the Financial Statements for 2004-2005

              [RP 58-2005].



   11. The following paper is referred to the Portfolio Committee on Finance and the Portfolio

        Committee on Provincial and Local Government:



        (a)   Government Notice No 362 published in Government Gazette No 28740 dated 13

              April 2006: Publication of Local Government allocations and frameworks, in terms of

              the Division of Revenue Act, 2006 (Act No 2 of 2006).



   12. The following papers are referred to the Portfolio Committee on Finance and the

        Portfolio Committee on Labour:



        (a)   Exchange of Letters between the Government of the Republic of South Africa and the

              Government of the Federal Republic of Germany concerning the Project: Learnership

              Training System Programme, tabled in terms of section 231(3) of the Constitution,

              1996.
20 JUNE 2006                                                 Page: 160 of 221


        (b)    Explanatory Memorandum on the Exchange of Letters between the Government of

               the Republic of South Africa and the Government of the Federal Republic of

               Germany concerning the Project: Learnership Training System Programme.



        (c)    Exchange of Letters between the Government of the Republic of South Africa and the

               Government of the Federal Republic of Germany concerning the Project: Skills

               Development Strategy Initiative (SDSI), tabled in terms of section 231(3) of the

               Constitution, 1996.



        (d)    Explanatory Memorandum on the Exchange of Letters between the Government of

               the Republic of South Africa and the Government of the Federal Republic of

               Germany concerning the Project: Skills Development Strategy Initiative (SDSI).



   13. The following papers are referred to the Portfolio Committee on Finance, the Portfolio

        Committee on Public Service and Administration and the Portfolio Committee on

        Justice and Constitutional Development:



        (a) Exchange of Letters between the Government of the Republic of South Africa and the

              Government of the Federal Republic of Germany concerning the Project: Legislative

              Drafting Programme, tabled in terms of section 231(3) of the Constitution, 1996.



        (b) Explanatory Memorandum on the Exchange of Letters between the Government of the

              Republic of South Africa and the Government of the Federal Republic of Germany

              concerning the Project: Legislative Drafting Programme.
20 JUNE 2006                                               Page: 161 of 221




   14. The following papers are referred to the Portfolio Committee on Finance, the Portfolio

        Committee on Provincial and Local Government and the Portfolio Committee Foreign

        Affairs:



        (a) Exchange of Letters between the Government of the Republic of South Africa and the

           Government of the Federal Republic of Germany concerning the Project: Mpumalanga

           Rural Development Programme, tabled in terms of section 231(3) of the Constitution,

           1996.



        (b) Explanatory Memorandum on the Exchange of Letters between the Government of the

           Republic of South Africa and the Government of the Federal Republic of Germany

           concerning the Project: Mpumalanga Rural Development Programme.



   15. The following papers are referred to the Portfolio Committee on Finance, the Portfolio

        Committee on Safety and Security and the Portfolio Committee on Science and

        Technology:



        (a) Agreement between the Government of the Kingdom of Belgium and the Government

           of the Republic of South Africa on Technology-Aided Distance Self Learning in the

           South African Police Service, tabled in terms of section 231(3) of the Constitution,

           1996.
20 JUNE 2006                                              Page: 162 of 221


        (b) Explanatory Memorandum on the Agreement between the Government of the Kingdom

           of Belgium and the Government of the Republic of South Africa on Technology-Aided

           Distance Self Learning in the South African Police Service.



   16. The following papers are referred to the Portfolio Committee on Provincial and Local

        Government for consideration:



        (a) Exchange of Letters between the Government of the Republic of South Africa and the

           Government of the Federal Republic of Germany concerning the Project: Technology

           Diffusion through Technikons, tabled in terms of section 231(3) of the Constitution,

           1996.



        (b) Explanatory Memorandum on the Exchange of Letters between the Government of the

           Republic of South Africa and the Government of the Federal Republic of Germany

           concerning the Project: Technology Diffusion through Technikons.



   17. The following papers are referred to the Portfolio Committee on Finance, the Portfolio

        Committee on Foreign Affairs and the Joint Monitoring Committee on the

        Improvement of Quality of Life and Status of Children, Youth and Disabled Persons:



        (a) Exchange of Letters between the Government of the Republic of South Africa and the

           Government of the Federal Republic of Germany concerning the Project: Peace and

           Development Project, tabled in terms of section 231(3) of the Constitution, 1996.
20 JUNE 2006                                               Page: 163 of 221


        (b) Explanatory Memorandum on the Exchange of Letters between the Government of the

           Republic of South Africa and the Government of the Federal Republic of Germany

           concerning the Project: Peace and Development Project.



        (c) Exchange of Letters between the Government of the Republic of South Africa and the

           Government of the Federal Republic of Germany concerning Financial Cooperation in

           2005, tabled in terms of section 231(3) of the Constitution, 1996.



        (d) Explanatory Memorandum on the Exchange of Letters between the Government of the

           Republic of South Africa and the Government of the Federal Republic of Germany

           concerning Financial Cooperation in 2005.



   18. The following papers are referred to the Portfolio Committee on Finance and the

        Portfolio Committee on Trade and Industry:



        (a) Exchange of Letters between the Government of the Republic of South Africa and the

           Government of the Federal Republic of Germany concerning the Project: Programme to

           Develop Markets for Business Development Services, tabled in terms of section 231(3)

           of the Constitution, 1996.



        (b) Explanatory Memorandum on the Exchange of Letters between the Government of the

           Republic of South Africa and the Government of the Federal Republic of Germany

           concerning the Project: Programme to Develop Markets for Business Development

           Services.
20 JUNE 2006                                                Page: 164 of 221




   19. The following paper is referred to the Portfolio Committee on Agriculture and Land

        Affairs for consideration and report:



        (a)   Report and Financial Statements of the Commission on Restitution of Land Rights for

              2005-2006 [RP 54-2006].



    20. The following paper is referred to the Standing Committee on the Auditor-General for

        consideration and report:



        (a)   Activity Report of the Auditor-General for 2004-2005 [RP 231-2005].



    21. The following papers are referred to the Portfolio Committee on Education:



        (a)   Government Notice No 540 published in Government Gazette No 28719 dated 10

              April 2006: Call for written submissions from stakeholder bodies and members of the

              public on the draft policy document: An addendum to the policy document, the

              National Certificate: A qualification at Level 4 on the National Qualifications

              Framework (NQF), regarding learners with special needs, in terms of the National

              Education Policy Act, 1996 (Act No 27 of 1996).



        (b)   Government Notice No 603 published in Government Gazette No 28806 dated 8 May

              2006: Call for comment on the Further Education and Training Colleges Bill, 2006.
20 JUNE 2006                                                Page: 165 of 221


        (c)   Government Notice No 265 published in Government Gazette No 28657 dated 24

              March 2006: Calling for the nomination of persons to serve as members on the

              Second Umalusi Council for General and Further Education and Training Quality

              Assurance for the period 8 June 2006 until 7 June 2010, in terms of the Act, 2001

              (Act No 58 of 2001).



        (d)   Government Notice No 593 published in Government Gazette No 28790 dated 3 May

              2006: National policy regarding further education and training programmes: Approval

              of Modern Greek as an additional subject to be listed in the National Curriculum

              Statement: Grades 10-12 (General), in terms of the National Policy Act, 1996 (Act No

              27 of 1996) and the South African Schools Act, 1996 (Act No 84 of 1996).



   22. The following papers are referred to the Portfolio Committee on Environmental Affairs

        and Tourism:



        (a)   Government Notice No 385 published in Government Gazette No 28753 dated 21

              April 2006: Regulations in terms of Chapter 5, made in terms of the National

              Environmental Management Act, 1998 (Act No 107 of 1998).



        (b)   Government Notice No 597 published in Government Gazette No 28803 dated 5 May

              2006: Draft Regulations relating to listed threatened or protected species, made in

              terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10

              of 2004).
20 JUNE 2006                                                     Page: 166 of 221


             (c)   Government Notice No 598 published in Government Gazette No 28803 dated 5 May

                   2006: Draft national norms and standards for the regulation of the hunting industry in

                   South Africa, made in terms of the National Environmental Management:

                   Biodiversity Act, 2004 (Act No 10 of 2004).



TABLINGS



National Assembly and National Council of Provinces



1.     The Minister of Transport



       (1) Report and Financial Statements of the Road Accident Fund (RAF) for 2004-2005,

             including the Report of the Auditor-General on the Financial Statements for 2004-2005 [RP

             34-2006].



COMMITTEE REPORTS



National Assembly



1. Report of the Portfolio Committee on Finance on the Second Small Business Tax Amnesty and

     Amendment of Taxation Laws Bill [B 15 – 2006] (National Assembly – sec 75), dated 14 June

     2006:



        The Portfolio Committee on Finance, having considered the subject of the Second Small

        Business Tax Amnesty and Amendment of Taxation Laws Bill [B15 – 2006]                   (National
20 JUNE 2006                                                Page: 167 of 221


      Assembly – sec 75), referred to it, and classified by the Joint Tagging Mechanism as a section

      75 Bill, reports the Bill without amendment.



2. Report of the Portfolio Committee on Finance on the Small Business Tax Amnesty and

   Amendment of Taxation Laws Bill [B 14 – 2006] (National Assembly – sec 77), dated 14 June

   2006:



      The Portfolio Committee on Finance, having considered and examined the Small Business Tax

      Amnesty and Amendment of Taxation Laws Bill, [B14 – 2006] (National Assembly – sec 77),

      referred to it, and classified by the Joint Tagging Mechanism as a Money Bill, reports that it

      has agreed to the Bill.



3. Twenty-Third Report of Standing Committee on Public Accounts: Water Research

   Commission, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Water Research

      Commission for the year ended 31 March 2005, tabled in Parliament and referred to it, reports

      as follows:



   2. AUDIT OPINION
20 JUNE 2006                                                   Page: 168 of 221


      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Water Research Commission is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



4. Twenty-Fourth Report of Standing Committee on Public Accounts: Umalusi Council for

   Quality Assurance, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Umalusi Council for

      Quality Assurance for the year ended 31 March 2005, tabled in Parliament and referred to it,

      reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.
20 JUNE 2006                                                   Page: 169 of 221


   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Umalusi Council for Quality Assurance is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



5. Twenty-Fifth Report of Standing Committee on Public Accounts: Sedibeng Water Board

   Qwaqwa, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Sedibeng Water Board

      Qwaqwa for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as

      follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION
20 JUNE 2006                                                   Page: 170 of 221


      The Committee is of the view that no further interaction with the Accounting Authority of the

      Sedibeng Water Board Qwaqwa is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



6. Twenty-Sixth Report of Standing Committee on Public Accounts: State President Fund, dated

   15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the State President Fund for the

      year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION

      The Committee is of the view that no further interaction with the Accounting Authority of the

      State President Fund is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
20 JUNE 2006                                                   Page: 171 of 221


7. Twenty-Seventh Report of Standing Committee on Public Accounts: South African Institute

   for Drug Free Sport, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the South African Institute For

      Drug-Free Sport for the year ended 31 March 2005, tabled in Parliament and referred to it,

      reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      South African Institute For Drug-Free Sport is necessary for the financial year under

      review.

      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



8. Twenty-Eighth Report of Standing Committee on Public Accounts: Refugee Relief Fund,

   dated 15 March 2006:
20 JUNE 2006                                                   Page: 172 of 221


   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Refugee Relief Fund for the

      year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Refugee Relief Fund is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



9. Twenty-Ninth Report of Standing Committee on Public Accounts: Umngeni Water Board,

   dated 15 March 2006:

   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Umngeni Water Board for

      the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
20 JUNE 2006                                                   Page: 173 of 221




   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Umngeni Water Board is necessary for the financial year under review..



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



10. Thirtieth Report of Standing Committee on Public Accounts: Trans-Caledon Tunnel

   Authority, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Trans-Caledon Tunnel

      Authority for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as

      follows:



   2. AUDIT OPINION
20 JUNE 2006                                                   Page: 174 of 221


      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Trans-Caledon Tunnel Authority is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



11. Thirty-First Report of Standing Committee on Public Accounts, Social Relief Fund, dated 15

   March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Social Relief Fund for the

      year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION

      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION
20 JUNE 2006                                                   Page: 175 of 221


      The Committee is of the view that no further interaction with the Accounting Authority of the

      Social Relief Fund is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



12. Thirty-Second Report of Standing Committee on Public Accounts: South African National

   Accreditation System, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the South African National

      Accreditation System for the year ended 31 March 2005, tabled in Parliament and referred to

      it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      South African National Accreditation System is necessary for the financial year under

      review.
20 JUNE 2006                                                   Page: 176 of 221




      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



13. Thirty-Third Report of Standing Committee on Public Accounts: Rand Water Board, dated

   15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Rand Water Board for the

      year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Rand Water Board is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
20 JUNE 2006                                                   Page: 177 of 221


14. Thirty-Fourth Report of Standing Committee on Public Accounts: Rural Housing Loan

   Fund, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Rural Housing Loan Fund

      for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Rural Housing Loan Fund is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.

15. Thirty-Fifth Report of Standing Committee on Public Accounts: Magalies Water Board,

   dated 15 March 2006:



   1. INTRODUCTION
20 JUNE 2006                                                   Page: 178 of 221


      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Magalies Water Board for

      the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Magalies Water Board is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



16. Thirty-Sixth Report of Standing Committee on Public Accounts: Namaqua Water Board,

   dated 15 March 2006:



   1. INTRODUCTION

      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Namaqua Water Board for

      the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION
20 JUNE 2006                                                   Page: 179 of 221




      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.



   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Namaqua Water Board is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



17. Thirty-Seventh Report of Standing Committee on Public Accounts: Overberg Water Board,

   dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the Overberg Water Board for

      the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.
20 JUNE 2006                                                   Page: 180 of 221


   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      Overberg Water Board is necessary for the financial year under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



18. Thirty-Eighth Report of Standing Committee on Public Accounts: CHIETA, dated 15 March

   2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the CHIETA for the year ended

      31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.

   3. GENERAL MATTERS



      The Committee finds it totally unacceptable that CHIETA did not respond to Parliament’s

      resolution of 2004.
20 JUNE 2006                                                   Page: 181 of 221


      The Committee further requests CHIETA to supply a thorough explanation why the 60 days

      deadline was not met.



   4. CONCLUSION



      The Committee is of the view that, except for the aspects highlighted above; no further

      interaction with the Accounting Authority of the CHIETA is necessary for the financial year

      under review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



19. Thirty-Ninth Report of Standing Committee on Public Accounts: National Home Builders

   Registration Council, dated 15 March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the National Home Builders

      Registration Council for the year ended 31 March 2005, tabled in Parliament and referred to

      it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will be equally unqualified.
20 JUNE 2006                                                   Page: 182 of 221




   3. CONCLUSION



      The Committee is of the view that no further interaction with the Accounting Authority of the

      National Home Builders Registration Council is necessary for the financial year under

      review.



      The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



20. Fortieth Report of Standing Committee on Public Accounts: FOODBEV SETA, dated 15

   March 2006:



   1. INTRODUCTION



      The Standing Committee on Public Accounts, having considered the Annual Report and the

      Report of the Auditor-General on the Financial Statements of the FOODBEV SETA for the

      year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:



   2. AUDIT OPINION



      The Committee noted the unqualified audit opinion expressed by the Auditor-General, and

      trusts that future audit opinions will equally unqualified.



   3. GENERAL MATTERS
20 JUNE 2006                                                  Page: 183 of 221


        The Committee finds it totally unacceptable that FOODBEV did not respond to Parliament’s

        resolution of 2004.

        The Committee further requests FOODBEV to supply a thorough explanation why the 60 days

        deadline was not met.



   4. CONCLUSION



        The Committee is of the view that, except for the aspects highlighted above; no further

        interaction with the Accounting Authority of the FOODBEV SETA is necessary for the

        financial year under review.



        The Committee therefore awaits the next Annual Report and the Report of the Auditor General.



21. Report of the Portfolio Committee on Foreign Affairs on the Principles and Guidelines

   Governing Democratic Elections and Standards and Norms for Elections, dated 13 June

   2006:



   1.    SADC PRINCIPLES AND GUIDELINES GOVERNING DEMOCRATIC

         ELECTIONS



   The Southern African Development Community (SADC) Principles and Guidelines for Elections

   were adopted in Mauritius in 2004. They govern the conduct of elections in SADC member

   countries with an aim of enhancing transparency, credibility of elections, democratic governance to

   make sure that elections are free and fair and to create an environment in which elections result are
20 JUNE 2006                                                    Page: 184 of 221


  accepted by those who are participating in the election. The main body of the principles and

  guidelines include inter alia the following:



       Full participation of the citizens in the political process during elections.

       Freedom of association.

       Political tolerance.

       Regular interval for elections as provided for in the country constitution.

       Equal opportunity for all political parties to access State media.

       Equal opportunity to exercise the right to vote and be voted for.

       Independence of the judiciary.

       Impartiality of electoral institutions and voter education.



  The principles are developed with an intention of encouraging the adherence to broad human rights

  principles and norms, which would create an environment of peace and political stability. They are

  not binding to any state or government, but are voluntary for all member countries. Thus, their

  implementation solely resides with the individual government or country and in compliance with

  the election standards and/or constitution of that country.



  2.   SADC NORMS AND STANDARDS FOR ELECTIONS



  The SADC Norms and Standards for Elections are based on the Organisation of African Unity

  (OAU) or African Union Declaration on the Principles Governing Democratic Elections in Africa

  that was adopted at the 38th Ordinary Session of the Assembly of Heads of State and Government

  in 2002. They are also designed in accordance with the Universal Declaration of Human Rights.

  The main aspects of the norms and standards are the following:
20 JUNE 2006                                                  Page: 185 of 221




       (a)   The recognition that proper elections should include a process in which voters are

             registered to vote and have a right to be voted for.

       (b)   Voting would be secret.

       (c)   Individuals have a right to freedom of association and free to express themselves during

             elections.

       (d)   Adherence to multi-party democracy.

       (e)   Political parties must be treated equally, and have a fair share of resources distributed

             by government for the purpose of elections.

       (f)   Equal access to State media by both the ruling and the opposition parties.

       (g)   Establishment of an Independent Electoral Commission for the preparation and conduct

             of elections.

       (h)   Transparent and Democratic Election process.

       (i)   Free and Fair Elections.

       (j)   Voter education.

       (k)   Political tolerance during election campaigns.

       (l)   Independent Judicial System in the form of courts to deal with election offences,

             appeals and petitions and post elections legal issues.



  The norms and standards seek to establish a regional barometer for elections in member countries.

  They also aim at buttressing the human rights standards of member countries in line with the AU

  and UN declarations and protocols.



  3.   RECOMMENDATIONS
20 JUNE 2006                                                        Page: 186 of 221


   The following are recommendations arising from consideration of the above facts and issues

   relating to the SADC Principles and Norms and Standards:



           (a)     The SADC principles and norms and standards must be harmonised as opposed to

                   having two sets of analogous election guidelines.

           (b)     The central pillar should be to foster the application of one single elections barometer

                   for member countries.

           (c)     Parliament must adopt both the SADC principles and norms and standards as outlined

                   with the proviso that they will be harmonised.



   The Committee feels that there are no necessities to change our current norms and there’s no need

   for these to be harmonised with other election principles.



There is a call for SADC to have one election observation-monitoring tool.



Report to be considered.



22. Report of the Portfolio Committee on Foreign Affairs on the Comoros Presidential Elections:

   SA Observer Team, dated 12 June 2006:

   1. INTRODUCTION

                Within the framework of the national reconciliation process coordinated by the AU and in

                 response to the request of the Comorian authority, the international community deployed

                 observers to assess the conduct of the Presidential Elections of 14 May 2006 in the

                 Comoros.
20 JUNE 2006                                                 Page: 187 of 221


         In pursuance of the Peace and Security Council decision taken at its 47th Session held in

          Addis Ababa, Ethiopia on 21 March 2006, the Peace and Security Council requested the

          African Union Commission to coordinate the efforts of the AU partners in the Comoros in

          order to facilitate the smooth holding of the election process.



         South Africa and the African Union (AU) have been pivotal in securing the first round of

          elections (Primaries). This task emanates from the engagement by President Mbeki as well

          as Minister Dlamini Zuma in her capacity as Chairperson of the Countries of the Region

          on the Comoros.



         In terms of the Union Constitution of Comoros, the position of President rotates every 4

          years amongst the three Islands (Grand Comoros, Moheli and Anjouan).



  2. COMPOSITION DELIGATION

  A delegation of 10 members, consisting of five MPs, namely, Mr. DJ Sithole, Ms. M Maunye, Ms.

  A Van Wyk, Mr. P Smith, Mr. A Steyn and Mr. F Kgodumo of the Youth Commission, Mr. A

  Mali of the South African chapter of ECOSSOC and officials of DFA (Department of Foreign

  Affairs), Amb. C Seleka, Mr. S Mhlana and Ms. M Kekana arrived on the 23 April 2006 in the

  Comoros.

  3. PROGRAMME

         Ambassador Mabeta of South Africa introduced the delegation to Minister Madeira, the

          Political head of AMISEC and



         Ambassador Mouraad of the AU,
20 JUNE 2006                                                 Page: 188 of 221


         The Military leadership of AMISEC, Col Sibanyoni and Col Schoeman.



         The delegation was briefed on the general political situation in the Comoros and the

          expectations of AMISEC given the weaknesses discussed in the body of this report.



  3.1 MEETINGS WITH STAKEHOLDERS



  1. Union President, Mr. Azali Asoumani

  2. Minister of Foreign Affairs

  3. President of Grand Comoros, Mr. Abdou Soule Elbak

  4. President of Moheli, Mr. Faull

  5. President of Anjouan, Mr. Mohamed Bacar

  6. Candidates, AA Sambi , M Djannfari and I Halidi

  7. The Constitutional Court

  8. International Community

  9. All three Island CIECs (Comoros Island Elections Commissions) and the CNEC (Comoros

     National Elections Commissions).



  4. RESULT OF THE PRIMARY ELECTIONS, 16 APRIL 2006, IN ANJOUAN

  On 16 May 2006, Primaries were held with 13 Presidential candidates from Anjouan contesting the

  elections. The Primaries determine the top three candidates that then contest the National President

  Elections. The result of the Primaries on Anjouan was:



   A Sambi                                  26%

   M Djaanfari                              14.44%
20 JUNE 2006                                                  Page: 189 of 221


   I Halidi                                     14.30%



  4.1. Evaluation of the 1st Round of Primary Elections in Anjouan 16/04/06



       Irregularities were noted in the following voting stations:



           i) Nyumakele Region

                  -Voting Station of Ongojou 1

                  -Voting Station of Mirondroni

           ii) Sima Region

                  -Voting Station of Nindri

                  -Voting Station of Nindri 2



       Delays in the delivery of election material was noted as one of the critical weaknesses of

       CNEC as the late arrival of material resulted in NyuMakhele region’s voting stations opening

       as late as 13h00. Due to the late opening and other delays, some stations were allowed to go

       beyond the 18:00 closing time.



       Sudden changing of polling station presidents resulted in voters in the affected areas refusing

       to vote.



      The International Community and AMISEC were also criticized. It was noted that AMISEC

       personnel were not in every voting station despite explanations that the Military was

       efficiently deployed and that they were mobile to deal with any difficulties within 10 minutes.

       The expectation remained that AMISEC are required to be placed at every poling venue.
20 JUNE 2006                                                  Page: 190 of 221


      AMISEC was specifically pressured to take over the elections from the CNEC, as people felt

      nervous with the performance of the electoral body.



      It was noted that electoral officials in Anjouan gave in to political pressure and flaunted

      CNEC procedures.



      The delegation was briefed about attempts from a certain section of the political spectrum of

      the Comoros, arguing for the annulment of the elections due to perceived irregularities in the

      above mentioned regions and voting stations. All three Island CIECs raised a concern

      regarding the non payment or late payment of accounts from the side of CNEC.



      During the first week of the delegation’s visit in the Comoros, several events took place on the

      Island of Moheli that had the potential to create uncertainty on the ground. The first was

      related to a march by the military and the second with a strike action at the Island’s harbor.

      Both these issues were addressed with the relevant role-players and steps were agreed upon to

      address the situation and ensure that no repetition of it takes place.



  4.2. Corrective steps to remedy the identified weakness for the upcoming 2nd round of Union

      Presidential elections



      A workshop was held with CNEC, all three CIECs, IEC, Observers and AMISEC leadership

      to work through identified problems and agree on corrective actions to be taken and to

      allocate specific responsibilities to individuals and bodies.



      The following recommendations came out from the workshop:
20 JUNE 2006                                                  Page: 191 of 221


            Increase the Military Component of AMISEC,

            Increase Civilian Observers and improve their visibility,

            Appointment of Voting Station Staff to be done in time,

            IEC to train all election Staff,

            All election material to be dispatched in time by CIEC with AMISEC securing the

             material,

            Preparations of material to all voting stations to also be done in time,

            IEC and Observers be deployed in time,

            Arrangements are made between UNDP, CNEC and the three CIECs to address the late

             payment of accounts and to ensure that it does not happen again.



  5. ELECTION DAY



  Preliminary results of the Presidential Elections of 14 May 2006.



  The preliminary results for the Presidential elections held on 14 May 2006, was issued on 16 May

  2006 by the Minister of Interior, who is also in charge of the elections. The Constitutional Court

  will issue the official announcement of the results no later than Thursday, 18 May 2006.



  The following are the summarised preliminary results for the autonomous island of Grande

  Comoros, Anjouan and Moheli:



   Candidate        Grande             Moheli           Anjuoan             Total

                   Comoros
20 JUNE 2006                                                   Page: 192 of 221


    Sambi            64,35%            74,72%            45,70%            58,28%

    Halidi           29,50%            17,86%            27,65%            28,01%

   Djaafari          6,15%              8,43%            26,65%            13,72%



  6. POST ELECTIONS



            The AU and International observers issued a statement on 16 May 2006 declaring the

             elections free, fair and transparent. The SA/AU observers were deployed to the three

             islands to cover all the 624 voting stations. Three members were deployed in Moheli,

             five members in Anjouan and five members in Grand Comoros.



            Other observers come from the Francophone, Arab League, UNDP, Indian Ocean

             Commission, France, China and the USA.



            The voting process was conducted smoothly in almost all voting stations. There were

             isolated incidents of intimidation against some electoral officials and attempts to

             fraudulently cast votes by using forged ballot papers. The general observation from all

             observers was that there were no acts of violence and that the general conduct of the

             Comorian people was commendable.



            Errors on the voters roll were noted. One voter card number was used for up to five

             different voters and this opened the voters roll to manipulation.



            The SOMA agreement tasked AMISEC with the responsibility of distributing the voting

             material to all voting stations. Voting started slightly late in some of the voting stations,
20 JUNE 2006                                                Page: 193 of 221


         with a few voting stations opening very late due to inaccessibility and late delivery of

         materials.



        In all voting stations were officials, party agents for each candidate and a member of the

         AMISEC. It is important to note that certain voting stations had no AMISEC presence

         but a contingency plan was devised whereby AMISEC patrolled around these areas.



        AMISEC was also tasked with the rollback of all voting material including envelopes

         with the results, for each island, destined for the Constitutional Court.



  7. GENERAL OBSERVATIONS



        Daily meetings were held between members of AMISEC, CNEC and the international

         community to discuss matters regarding election preparations and to overcome

         anticipated problems that might arise during the elections.



        Training of electoral staff was minimal due to poor logistical planning.



        Lack of Professionalism and poor communication was noted in some members of the

         IEC.



        The question of how South Africa’s Institutions relate to each other when they are on

         deployments outside the country must be discussed. The approach adopted on the

         deployment of extra troops from RSA to the Comoros is a critical point in hand. The

         military informed all stakeholders in the Comoros and international community about the
20 JUNE 2006                                              Page: 194 of 221


         850 troops to be deployed by RSA just before the elections. It was the view of the RSA

         Diplomats that the matter was best placed between the AU and the RSA Capital and it

         should not be discussed in the AMISEC planning meetings. This view was not shared by

         AMISEC and the matter became a source of tension.



        The SABC was on the ground and they were unable to be assisted effectively by the

         AMISEC Media office. However, with the arrival of the Beeld journalist it was a

         different case. She was picked up and dropped at the airport by AMISEC and exclusive

         interviews were arranged for her.



        AMISEC Political Head, Mr. Madeira and IEC expert, Mr Steve Ngwenya confused the

         role of observers. In their view the IEC will be responsible for the deployment of AU,

         SA and other observers. They wanted observers to roll out and roll back voting materials

         and that observers should, together with supervisors, do trouble shooting during Election

         Day. After intense debate it was agreed that observers should be allowed to observe

         elections as per the normal guiding principles of observations.

  8. RECOMMENDATIONS



        Need to financially capacitate CNEC and CIEC’s to be able to independently perform

         their duties in future.

        Intensive training and skills transfer to CNEC and CIEC’s.

        Restructuring and depolarization of CNEC and CIEC’s and the Constitutional Court.

        South Africa to consider assisting in the retraining of the Comoros Security forces.

        Reevaluation of the voter roll and Voters Cards and the improvement of its management.

        The AU mandate to be clearly spelt out to the Observers special envoys.
20 JUNE 2006                                                Page: 195 of 221


           The SA DFA needs to clarify its responsibilities to the South African Observer Teams.

           The Institutional relationship to be clarified and streamlined, (this relates to behavior

            that has the potential to undermine the Diplomatic representatives of RSA, not

            limited to this mission).

           Institutional mandates in any mission to be communicated clearly to all involved so as to

            avoid the problems noted above.



23. Report of the Portfolio Committee on Foreign Affairs on the South African Parliament

   delegation to the 19th Plenary Assembly of the Southern African Development Community -

   Parliamentary Forum, dated 13 June 2006:



   1. INTRODUCTION



   The 19th Plenary Assembly of the Southern African Development Community-Parliamentary

   Forum (SADC-PF) took place in Gaborone, Botswana from 8 to 17 December 2005. The theme of

   the Plenary Assembly was, ― Redefining Strategic Priorities of the SADC Parliamentary Forum to

   Mainstream Parliamentary Dimensions to Regional Integration‖. The following Members of

   Parliament (MP’s) represented the Parliament of South Africa at the Plenary:




         The Hon. F Hajaig, MP (Head of the Delegation)

         The Hon. Mr E Sogoni, MP

         The Hon. Mr W J Seremane, MP

         The Hon. D J Sithole, MP

         Two Support Staff, Ms L D Lenzie (legal advisor) and Mr J Mokoena (researcher), assisted

          the delegation.
20 JUNE 2006                                                 Page: 196 of 221




  The Presiding Officers and representatives of the following twelve (12) of the thirteen member

  Parliaments of the Southern African Development Community Parliamentary Forum attended the

  Committee meetings and Plenary Sessions, viz.:



  Angola                                                 Mozambique

  Botswana                                               Namibia

  Democratic Republic of Congo                           South Africa

  Lesotho                                                Swaziland

  Malawi                                                 Zambia

  Mauritius                                              Zimbabwe



  The Parliament of the United Republic of Tanzania was not represented as it was dissolved

  pending the outcome of the Presidential and Parliamentary elections that were taking place in the

  country.



  2. OPENING SESSION



  The following dignitaries addressed the opening session:



          The Speaker of the National Assembly of Botswana, the Honourable Patrick Balopi (MP).

          The Chairperson of the SADC-PF and Speaker of the Zambian Parliament, the Honourable

           Amusaa Mwanamwambwa (MP).

          The President of the Republic of Botswana and Chairperson of the Southern African

           Development Community (SADC), His Excellency Mr Festus Gontebanye Mogae.
20 JUNE 2006                                                  Page: 197 of 221


         The Speaker of the National Assembly of the Kingdom of Swaziland, the Honourable

          S’gayoyo Magongo (MP).



  2.1. Welcoming Address by the host Speaker, the Hon Patrick Balopi

  The host Speaker, the Hon P. Balopi welcomed delegates to Gaborone, Botswana. The Speaker

  highlighted the historical commitment of Botswana to the ideals of SADC as evidenced by the

  precursor to SADC, the Southern African Development Coordinating Conference (SADCC), which

  was conceived in Botswana. Botswana first hosted the plenary assembly in March 1998 when the

  Forum was still very much in its infancy and shortly after the election of its first executive

  committee in Cape Town in 1997. The active participation of the Parliament of Botswana in the

  work of SADC-PF is a contribution that the country makes to the region and the African continent.

  The continued contribution of Botswana Members of Parliament in the Parliamentary Forum is

  immense with most of them holding positions in the Executive and Standing Committees. In

  September 2005, Botswana hosted a SADC-PF regional seminar on Electoral System Design. The

  government of Botswana is committed to the historical mission of SADC-PF.



  2.2. Welcoming      Address    by    the   Chairperson     of   SADC-PF,      the   Hon.    Amusaa

         Mwanamwambwa



  In his address to the opening session, the Chairperson of the Parliamentary Forum stressed the need

  for closer co-operation and collective decision-making on matters that affect citizens of the region.

  He emphasised the importance of Parliamentarians to participate in regional politics, development

  and integration, which could be enhanced by the creation of a SADC Parliament. It was pointed out

  that the 19th Plenary Assembly would, among other issues, develop a new Five-Year Strategic

  Plan. The Chairperson congratulated SADC Heads of State and Government for raising the
20 JUNE 2006                                                 Page: 198 of 221


  threshold of women representation in decision-making structures, increasing it from 30% to 50% in

  line with the African Union’s target.



  The SADC-PF will contribute towards the realisation of the goals envisioned in the Regional

  Indicative Strategic Development Plan (RISDP), as adopted in Tanzania. Through the proposed

  SADC Parliament, the objectives and plans of SADC can easily transcend national boundaries of

  countries. The Heads of State and Government, in approving the establishment of the SADC-PF

  foresaw the Forum as a nucleus of a future regional Parliament, unfortunately the role of

  parliamentarians in regional co-operation and integration remain undefined. The envisaged role of

  a SADC Parliament is primarily that of bringing parliamentary dimension to regional co-operation

  and integration.



  The coming into being of the Pan-African Parliament (PAP) in 2004 is a welcomed development

  and regional Parliamentary Forums are necessary for the PAP to fulfil its functions as outlined in

  its establishing protocol. The Chairperson of SADC must built consensus around the idea of

  establishing a SADC Parliament as a way of completing the building of a SADC community with

  all its constituent components, the Executive, Legislature and the Judiciary.



  The Chairperson thanked the Botswana government for hosting the 19th Plenary Assembly of the

  Forum and for the generous hospitality extended to delegates. He also thanked His Excellency,

  President Mogae for accepting the invitation to officially open the Plenary Assembly.



  2.3. Address by the President of Botswana, His Excellency Mr. Festus Gontebanye Mogae
20 JUNE 2006                                                 Page: 199 of 221


  In his address, the President of Botswana acknowledged the valuable role played by the SADC

  Parliamentary Forum over the years in building regional consensus and capacity. He appreciated

  the role played by the Forum in setting benchmarks for the promotion of gender equality, fighting

  against HIV and AIDS, and observing elections in SADC member countries. It was noted that

  SADC Election Observation Missions will benefit from the Forum’s experience in observing

  elections and thus, closer cooperation is necessary.



  The President noted that at the time when the SADC-PF was established in 1997, it was not

  considered necessary to establish a fully-fledged regional Parliament. The President assured the

  Plenary Assembly that the proposal to establish a SADC Parliament would receive careful

  consideration. The President also noted that Parliamentarians have a role to play in the RISDP and

  the Strategic Indicative Plan of the Organ on Defence, Politics and Security Co-operation among

  other SADC declarations and protocols.



  2.4. Vote of thanks by the Speaker of the National Assembly of Swaziland, the Hon. S’gayoyo

       Magongo

  The Speaker of the National Assembly of the Kingdom of Swaziland, the Hon S’gayoyo Magongo

  thanked the President of Botswana for his address to the Plenary Assembly and his election to the

  chairpersonship of SADC. In his address, the Speaker posed key questions for consideration and

  noted that the Region is at a time where co-operation at regional level must necessarily give way to

  competition. He called upon the Legislative and Executive arms of government to work

  cooperatively and not to the exclusion of the other in order to improve the socio-economic,

  cultural, and political situation of the people.
20 JUNE 2006                                                   Page: 200 of 221


  The Speaker suggested that the Southern African Development Community (SADC) must ask

  itself the following questions:



          What difference has it (SADC) made to the lives of women?

          Has SADC made any difference to the status of women in the society?

          What concerns do the children have in making it to a university?

          What difference will SADC make to the people of the region?

          What is it that will make people to be proud of being citizens of the region?

          What are the necessary facets of a fully integrated Southern African Development

           Community?



  On behalf of SADC-PF, the Speaker suggested that, during the tenure of the President of

  Botswana, as the Chairperson of SADC, there will be co-operation between the Executive and the

  Legislative arms of government and this would be enhanced in order to achieve regional co-

  operation and integration.



  3. EXECUTIVE COMMITTEE MEETINGS – KEY ISSUES

  3.1 Report of the Legal Sub-Committee



  The Legal Sub-Committee met and considered the credentials of delegates to the 19th Plenary

  Assembly, as prescribed in Article 6 (3) of the Constitution of SADC Parliamentary Forum. The

  Committee made the following observations and reported that:



     (a)     The Parliament of Tanzania was not represented, due to the pending general elections

             that were taking place in the country.
20 JUNE 2006                                                     Page: 201 of 221




     (b)    An apology had been received from the Parliament of South Africa, whose Speaker is

            currently leading the African Union (AU) Election Observer mission in Tanzania.



     (c)    Namibia did not have a member from the opposition.



     (d)    Parliaments of Lesotho, Mauritius and South Africa did not have representatives of their

            respective National Women’s Parliamentary Caucuses, due to the following:



  The Committee also noted that the Chairperson of the Lesotho National Women’s Parliamentary

  Caucus is currently leading the SADC Parliamentary Forum Election Observation Mission in

  Tanzania. It further noted that, Mauritius is yet to constitute a National Women’s Parliamentary

  Caucus following the elections in July 2005, while South Africa sent an apology on behalf of the

  Chairperson of the Country’s Women’s Parliamentary Caucus.



  It was noted that, most Parliaments had at least one-third representation of women and members

  from ruling and opposition parties in their delegations.



  In addition, the Executive Committee adopted a report of the Legal Sub-Committee relating to

  Guidelines for Elections of Chairpersons of Standing Committees. The elections will be conducted

  in terms of the 2003 electoral process, which requires that:



     (a)    Signed nominations for candidates should be submitted to the Secretary-General a day

            before the day of elections.
20 JUNE 2006                                                  Page: 202 of 221


     (b)     Names of duly nominated candidates should be publicized to committee members the

             day before elections.



     (c)     In electing office bearers, consideration should be made to gender equity and geographic

             spread of Member Parliaments.



     (d)     Election shall be by secret ballot.



     (e)     Outcome of elections would be subject to ratification by the Plenary Assembly.



  3.2 Report of the Chairperson



  The Chairperson reported on the following issues:



          The Office of the Chairperson made courtesy calls to the Heads of State and Government of

           Namibia, Botswana, Malawi and Zimbabwe.

          The courtesy call to the Namibian Head of State took place on the 14th July 2005.

          The courtesy call on the Head of State of Malawi took place on 22 July 2005 under the

           leadership of the Hon Duke Lefhoko, Vice Chairperson of SADC-PF.

          The courtesy call delegation to meet the Head of State of Botswana included the

           Chairperson, Vice Chairperson (Speaker of the National Assembly of Botswana) and

           members of SADC-PF in Botswana.

          The courtesy visit to President Robert Mugabe of Zimbabwe was carried out in terms of a

           decision made at the 17th Plenary Assembly and 18th Plenary Assembly.
20 JUNE 2006                                                  Page: 203 of 221


        The main purpose of the courtesy calls was for SADC-PF to be more inclusive by involving

         parliamentarians in its structures and programmes.

        During the visits, the Parliamentary Forum requested the Heads of State and Government to

         consider establishing the SADC Parliament under article 9 (1) of the Treaty, which

         establishes core organs of SADC.

        The establishment of the SADC Parliament would allow Members of Parliaments to be

         involved in SADC matters through a formalised legislative arm of SADC.

        During the courtesy calls, the Presidents of Namibia and Malawi expressed support for the

         establishment of SADC Parliament, of which the Presidents of South Africa and Zambia

         had already expressed support for the establishment of a SADC Parliament.

        The Heads of State and Government of Mauritius, Angola, Tanzania, and DRC were not

         visited.

        The Vice-Chairperson of SADC-PF also paid a courtesy visit to the Hon Prof Ali Nouhoum

         Diallo, Speaker of the Economic Community of Western African States (ECOWAS)

         Parliament in which it was agreed that the two bodies will work together.



  3.3 Report of the Secretary-General



  The report highlighted the following key points:

        The institutional development, preparatory work on the development of a new Five-Year

         Strategic Plan, support to policy organs, relations with SADC, networking and participation

         at international parliamentary conferences.

        The actual implementation of the activities which are expected to be hosted by the different

         member parliaments will be subject to consultation with the respective Parliaments to

         address issues of cost sharing, sitting calendars and local expectations, and other issues.
20 JUNE 2006                                               Page: 204 of 221


        The following are some of the issues that should be considered for incorporation in the

         work plan:



            (i)     Knowledge and information sharing and capacity building initiatives on

                    parliamentary reforms to enhance the independence and financial autonomy of

                    Parliamentary Forum.

            (ii)    Engagement with the PAP processes, including SADC caucus in the PAP.

            (iii)   Conscientisation of National Parliaments on the work of SADC-PF and the

                    establishment of permanent feedback mechanisms between parliamentary forum

                    and national Parliaments.



  3.4 Report of the Treasurer



  The following key points were made:



        The Committee noted that the audit for the financial statements for the year ended 31st

         March 2005 was conducted in July 2005.

        The Committee congratulated the Office of the Secretary General for this record.

        The Committee also noted the management accounts reported on the results for the six

         months ended 30th September 2005 with budget figures representing that period and that the

         budget needed rationalisation.

        The audited donor funded programmes, accountability statements provided in the report

         were noted and the Office of the Secretary General was congratulated for the good

         performance and auditors’ opinion.
20 JUNE 2006                                               Page: 205 of 221


       The Executive Committee considered the application for bank overdraft and Internet

        banking facilities, which was agreed to and concluded with the Forum bankers, Nedbank

        Namibia Limited.

       The Forum has an overdraft access of up to N$500 000.

       The arrangements regarding Internet banking facilities will be extended to the second

        bankers of the Forum, Standard Bank.

       Only nine out of the thirteen member Parliaments paid their annual mandatory

        contributions.

       The member Parliaments that are outstanding in their contribution should pay soonest.

       The increment of annual mandatory contribution per member Parliament of R850 000 will

        take effect from 1st April 2006.

       The staff compliment in the Office of the Secretary General has been increased with diverse

        nationalities and addressed the gender question through new staff recruitment.

       In August 2005, the Executive Committee reviewed the threshold of R2 000 000 for the

        purchase of the Secretary General’s new residence to R2 500 000 to accommodate transfer

        costs and other costs.

       The new residence of the Secretary General was acquired at R2 340 000, including transfer

        costs realising a saving of R160 000 on the approved budget of R2 500 000 and the

        Secretary General has taken occupation of the residence.

       The old residence of the Secretary General was renovated to increase its market value from

        R1 500 000 to 1 775 000 and estate agents have been commissioned to sell the property.

       The preparations for the 10th Anniversary of the SADC-PF in July 2006 are underway and

        the Treasurer should constitute and head a committee to consider activities for the

        anniversary celebrations.
20 JUNE 2006                                                      Page: 206 of 221


             The Committee should include representatives of the host country and the Clerk of the

              Country hosting the headquarters and the Clerk of the Country that will host the 20 th

              Plenary Assembly.

             All member Parliaments shall participate in the financing of the activities of the 10th

              Anniversary.



  4. STANDING COMMITTEES



  4.1 Committee on Democracy, Gender and Conflict Resolution/Peace-building



  The Committee considered the proposed new name of the Committee and agreed that it will,

  henceforth be, the Committee on Democratisation, Governance and Gender Equality. The Draft

  Strategic Plan for the next five years 2006-2010 was also adopted, aimed at the following strategic

  objectives:



  (i)        Effective implementation of regional integration programmes.

  (ii)       Improving institutions of democratic governance in the SADC region.

  (iii) Increased Professional performance.

  (iv)       Strategic partnerships and alliances established for parliamentary cooperation.



   The following Programme Areas for the Committee were adopted:



  (i)        Elections and Electoral Systems: This will include elections observation in order to keep a

             watching brief on the proper conduct of elections.

  (ii)       Gender: The adoption of protocols to accelerate gender equality in SADC
20 JUNE 2006                                                 Page: 207 of 221


  (iii) Strengthening Institutions of Democracy and Good Governance: working with institutions

         of civil society, political parties, and anti-corruption bureaus in order to strengthen their

         capacities.

  (iv)   Developing Best Practice and Policy Frameworks through Parliaments: such practices should

         also be aimed at mitigating and combating HIV and AIDS.



  4.2 Committee on Inter-parliamentary Co-operation



  The Committee acknowledged the observer status of the Forum in Inter-Parliamentary Union (IPU)

  and Commonwealth Parliamentary Association (CPA) as a desired achievement. It also

  acknowledged the collaborative mechanisms that have been established with New Partnership for

  Africa’s Development (NEPAD) and Association of West European Parliamentarians for Africa

  (AWEPA).



  The Secretariat was mandated to ensure that reports on Inter-Parliamentary co-operation activities

  are circulated to all member parliaments quarterly. It was agreed that Members attending SADC-

  PF meeting must present summary reports of the meeting to be discussed by their Parliaments.



  The Committee noted the need to increase advocacy work in individual Parliaments in order to

  increase awareness of the Forum’s activities. The Committee also acknowledge the Forum’s

  newsletter as a tool of information sharing.

  With regard to the Parliamentary Leadership Centre (PLC) Contributions, the Committee

  encouraged Members to appeal to their Parliaments to pay the contribution, as this is a requirement

  by the donor, the Africa Capacity Building Foundation (ACBF). The Committee raised concern on
20 JUNE 2006                                                Page: 208 of 221


  the recommendation that three members of the Committee be part of the Leadership Centre –

  Advisory Board but the Executive Committee approved only two (2).



  The committee recommended that the Chairperson of the Forum be part of the PLC Advisory

  Board since the committee will be responsible for the PLC. It also acknowledged that the Strategic

  Plan was well tailored, but raised concern over capacity to realistically implement the programmes

  suggested. It also received a submission from the Southern African Development Community

  Organisation of Public Accounts Committee (SADCOPAC) for the structure to be made part of

  SADC-PF. SADCOPAC is a body of Parliamentarians of the SADC region. The Committee

  recommended that SADCOPAC’s request to be part of the Forum be submitted to the Plenary

  Assembly.



  4.3 Committee on Regional Integration



  The key issues, which were noted and discussed by the committee included:



     Visa restrictions:



         o Bilateral negotiations regarding eliminations of Visa requirements among SADC

              Member States has resulted in the scrapping of Visa restrictions between Swaziland and

              Mozambique, and between Angola and Namibia.

         o It was also noted that Visa negotiations between some of the SADC Member States

              were continuing.

         o The treatment of Members of Parliament at South African Airports has not improved

              and this needs to be addressed.
20 JUNE 2006                                                Page: 209 of 221


    New Strategic Plan, 2006 – 2010:

        o The Committee considered the Draft Strategic Plan including its terms of reference and

            objectives.

        o It resolved that the strategic plan be adopted.

    SADC Protocol:

        o The Committee welcomed the SADC Protocol on the Facilitation of Free Movement of

            Persons.

        o It proposed that a workshop be convened to discuss the protocol as an instrument to

            facilitate regional integration.

    Relationship between SADC and SADC-PF

        o The Committee recommended that SADC pronounce itself on the relationship between

            the Forum and SADC and the status of the Forum thereto.

        o The Committee’s view was that the pronouncement will help clarify the issue of a

            regional Parliament and regional integration.

        o The election observation instruments by SADC and SADC-PF should be synchronised.

        o The Committee recommended a mechanism to include issues of SADC, SADC-PF and

            PAP in the school curriculum across the region.

    Transboundary Natural Resources Management (TNRM) Initiatives:

        o The Committee noted the TNRM meetings that took place in Angola, Namibia and

            Zambia.

        o The Committee recommended that information on transboundary projects be shared

            among member Parliaments and that the TNRM initiatives be put on the Regional

            Cooperation and Integration agenda.

    RISDP, NEPAD and Millennium Development Goals
20 JUNE 2006                                              Page: 210 of 221


        o The Committee has noted the submission by the Honourable Gamboa to integrate the

            Regional Indicative Strategic Development Plan (RISDP), New Partnership for Africa’s

            Development (NEPAD) and the Millennium Development Goals (MDG’s) into its

            agenda

        o The Committee approved the integration of RISDP, NEPAD and MDGs as proposed

            since this will guide the committee’s development and integration agenda.

    Poverty in the region

        o Majority of the people in the SADC region live below the poverty datum line surviving

            on US$1 per day.

        o The Committee proposed that poverty be a standing agenda item on its agenda.

        o Further recommended that SADC should rely on its internal resources instead of foreign

            assistance when dealing with poverty.



  4.4 Committee on HIV and AIDS



  The Committee made the following key points:



           The Committee considered country presentations on the role that parliamentarians and

            governments play in addressing HIV and AIDS.

           The Committee noted that Namibia has failed in two consecutive years to present a

            country presentation.

           The country presentations focused on progress made by countries

           The Committee noted the following:
20 JUNE 2006                                              Page: 211 of 221


               o The Secretariat did not keep contact with the Chairperson of the Committee on

                  matters pertaining to activities and decisions that need to be taken on behalf of

                  the Committee.

               o Food and nutrition are critical to people living with HIV and AIDS

               o The efficiency of stand-alone HIV and AIDS Portfolio Committees in relation to

                  infectious diseases in the region.

               o The Forum has repackaged material with support from the United States Agency

                  for International Development (USAID) Namibia in the form of fact sheet.

               o A handbook on HIV and AIDS, Gender, Human Rights for Members of

                  Parliament has been developed and will be validated by Member Parliaments

                  before going to press.

         The Committee agreed to the following:

               o HIV and AIDS should be dealt with together with other infectious diseases.

               o The interplay between HIV and AIDS, Tuberculosis and malaria should come

                  out clearly in the Strategic Plan.

               o The handbook on HIV and AIDS, Gender and Human Rights be circulated to

                  members of the Committee for validation

               o The Forum and SADC should work closely to synchronise a regional response to

                  the pandemic and regional programmes.

               o The Committee recommended that the Executive be lobbied to strengthen cross

                  border HIV and AIDS, Malaria and Tuberculosis programmes and activities.

               o The Committee also resolved that the consultant develops an HIV and AIDS

                  Action Plan based on the Strategic Plan objectives and other relevant documents.



  4.5 Committee on the Regional Women’s Parliamentary Caucus
20 JUNE 2006                                                Page: 212 of 221




  The Regional Women’s Parliamentary Caucus (RWPC) made the following key points:



        One of the objectives of the SADC-PF Regional Women’s Parliamentary Caucus mandate

         is to advocate and influence the participation and representation of women in elective

         political and decision making positions, including advocacy and lobbying.

        The objective of the RWPC advocacy and lobbying in Zambia is to influence political

         parties and a broad range of stakeholders to put in place mechanisms that will increase

         women’s representation in the Zambian Parliament to at least have 30% women.

        The lobbying and advocacy mission to Zambia was conducted from the 5-19 August 2005.

        The lobbying and advocacy mission was undertaken in terms of the SADC Declaration on

         Gender Development and Norms and Standards for Elections in the SADC region.

        The SADC Declaration commits SADC countries to the achievement of at least 30% (this

         threshold has been increased) representation in positions of power and decision-making by

         the year 2005.

        In terms of the African Union (AU) Constitutive Act and Declaration and the August 2005

         SADC Summit resolution, SADC countries are now expected to achieve 50-50

         representations of women and men.

        The Committee resolved to actively promote the 50% representation of women at

         parliamentary level.

        The RWPC assessment and stakeholders consultations reveal that Norms and Standards for

         Elections in the SADC region was the reference document that informed the review of

         electoral laws.

        The RWPC was concerned that most parties claim to have incorporated the SADC

         Declaration principles but this was not visible.
20 JUNE 2006                                                Page: 213 of 221


        The Committee recommended the following:



           (a)    Awareness campaign about the importance of women’s political participation and

                  representation at all levels of power and decision-making.

           (b)    Effective implementation and evaluation systems to track down progress on

                  women’s empowerment in all spheres.

           (c)    Capacity development for women.

           (d)    Political parties to implement stated commitments on achieving gender equality

                  and institute intra-party democratic processes to review the mainstreaming of

                  gender equality.



  5. PLENARY SESSIONS – KEY ISSUES



  5.1 Thematic Session of the Plenary Assembly

  The following presentations were made in line with the 19th Plenary Session theme‖ ―Redefining

  Strategic Priorities of the SADC Parliamentary Forum to mainstream parliamentary Dimensions to

  Regional Integration‖.



  5.1.1 Address by the Deputy Executive Secretary of SADC, Engineer Joao Samuel Caholo



  The address of the Deputy Executive Secretary covered progress and challenges in the region.

  According to the Deputy Executive Secretary, In 2004, real Growth Domestic Product (GDP) of

  the SADC region grew at the rate of 4.1% as compared to 3.2% in 2003. It was also observed that

  average economic growth of the region was below the average economic growth of the continent

  over the same period. This economic growth was due among other factors, peace and political
20 JUNE 2006                                                   Page: 214 of 221


  stability obtained in the region, sound macro-economic reforms in the SADC member countries.

  According to crop production vulnerability assessment conducted in April/May 2005, 9.7 million

  SADC citizens will require food assistance.



  The challenges facing the region include inter alia, peace and political stability in the Democratic

  Republic of the Congo, poverty, food insecurity, HIV and the AIDS pandemic, low rate of

  investment, and gender inequalities.



  5.1.2 Presentation by Professor Max Essex of the Harvard School of Public Health



  The presentation covered progress made in the development of vaccines and other interventions in

  Southern Africa. It recognised the need to conduct multiple trials with modern designs,

  international cooperation and regional expertise will be critical in this regard. The presenter

  advised that modern behavioural change is important to avoid the spread of the pandemic. An

  emphasis was placed on the provision of anti-retroviral drugs to those infected. It was also

  emphasised that Parliaments must be committed to fighting the spread of HIV and AIDS through

  legislative interventions and sharing of best practices.



  5.1.3 Draft Strategic Plan for the Southern African Development Community Parliamentary

        Forum: 2006-2010

  The Plenary Assembly reiterated its commitment to continue lobbying for the establishment of the

  SADC Parliament to foster regional cooperation and integration. The Plenary also agreed to

  develop mechanisms to deal with SADC matters, to facilitate monitoring and evaluation of the

  budget and programmes of SADC. A call was made for the acceleration of Intra-African trade to

  mitigate the unfavourable terms of the World Trade Organisation (WTO).
20 JUNE 2006                                                   Page: 215 of 221




  In addition, the Plenary Session approved the Parliamentary Leadership Centre and its work plan

  including the advisory board.

  The Plenary adopted the vision and mission of SADC-PF which were amended to read:



        Vision: ‖A delivery focused, people centred institution that accelerates and promotes

         parliamentary participation in regional decision making for the benefit of the citizens of

         SADC‖.



        Mission: ―To facilitate strategic partnerships within the SADC region, promote information

         sharing, initiate and implement projects that enhance regional integration and promote

         effective and professional parliamentary practice‖.



  The Plenary Assembly also adopted the SADC-PF organisational structure as proposed by the

  executive committee.



  The following four (4) strategic objectives contained in the draft strategic plan were adopted.

  These objectives are:



    (a) Improved institutions of democratic governance in the SADC region.

    (b) Effective implementation of Regional Integration Programme.

    (c) Increased professional performance of Members of Parliament and parliamentary staff

         under the Parliamentary Leadership Centre (PLC).

    (d) Strategic Partnership and Alliances Established for Parliamentary cooperation.
20 JUNE 2006                                                 Page: 216 of 221


  5.2 Policy Session of the Plenary Assembly



  The Plenary Assembly also dealt with the following key issues:



            The Plenary endorsed the PLC Advisory Board to be chaired by the Secretary General

             and will include members of the Forum.



            Country Reports



  Countries presented written reports highlighting progress in dealing with issues that the Forum has

  decided upon, covering the following issues:



       o     The SADC principles and guidelines for democratic elections and women

             representation.

       o     Support for Women’s Parliamentary Caucus.

       o     The implementation of the SADC Parliamentary Forum Norms and Standards for

             elections.

       o     Ratification of SADC protocols, treaties and legal instruments for purposes of regional

             integration and cooperation.

       o     Steps taken to deal with the HIV and AIDS, including prevention and the fight against

             the pandemic.

       o     Cooperation and participation in the Pan African Parliament activities and the African

             Union and the New Partnership for Africa’s Development.

     HIV and AIDS:
20 JUNE 2006                                                    Page: 217 of 221


          o     The Plenary Assembly approved a Plan of Action for national Parliaments to address

                the continued increase in the rates of HIV infections.

          o     The Plan covered prevention, treatment, discrimination, cultural practices and the Care

                of Orphans and Vulnerable Children.

        Action Plan

          o     The Plenary adopted a work plan for January-December 2006, which included inter

                alia, programmes on electoral reforms, norms and standards, the parliamentary

                leadership centre, advocacy and lobbying, gender issues, and women representation,

                poverty reduction and HIV and AIDS, peace and stability and site visits.

        Future Plenary Sessions:

          o     The 20th Plenary Session will be held in Maputo, Mozambique, in June 2006.

          o     South Africa has been requested to host the 21st plenary session late in 2006.



                                       TUESDAY, 20 JUNE 2006



ANNOUNCEMENTS



National Assembly and National Council of Provinces



The Speaker and the Chairperson

1.       Assent by President in respect of Bill



         (1)    Children’s Bill [B 70D – 2003] – Act No 38 of 2005 (assented to and signed by

                President on 8 June 2006).
20 JUNE 2006                                                   Page: 218 of 221


2.   Fast-tracking of Bill



     (1)      The Joint Subcommittee of the Joint Programme Committee on 20 June 2006 took the

              following decision:

              That—

              (1)    noting South Africa's international commitment to adopt special legislative

                     measures regarding the 2010 FIFA World Cup within specified timeframes;

              (2)     further noting that the 2010 FIFA World Cup South Africa Special Measures

                      Bill [B 13–2006] which was introduced on 6 June 2006 is to be split into

                      separate section 75 and section 76 Bills;

              (3)     in accordance with Joint Rule 216(2) the two Bills upon receipt be fast-tracked

                      by shortening any period within which any step in the legislative process

                      relating to the Bills has to be completed, but subject to public participation in

                      the process of the consideration of the Bills, in order for the Bills to be passed

                      by both Houses before 31 August 2006;

              (4)     for this purpose the relevant NA and NCOP committees confer on the Bills;

                      and

              (5)     the National Assembly committee finalises its consideration of the Bills by 31

                      July 2006 and the NCOP committee reports formally on both Bills in time for

                      the approved deadline to be met by Parliament.

     (2)      In terms of Joint Rule 216(4) this decision must be tabled in both Houses for

              ratification.



3.   Bill returned to Executive
20 JUNE 2006                                                  Page: 219 of 221


     (1)   On 20 June 2006 the Speaker and the Deputy Chairperson, after consultation, referred the

           2010 FIFA World Cup South Africa Special Measures Bill [B 13 – 2006], introduced in

           the National Assembly as a section 75 Bill on 6 June 2006, back to the Minister of Sport

           and Recreation, as it contains both section 75 and section 76 provisions.



4.   Reintroduction of Bill



     (1)   The Minister of Sport and Recreation



           2010 FIFA World Cup South Africa Special Measures Bill [B 13 – 2006 (Reintroduced)]

           (National Assembly – sec 75) [Explanatory summary of Bill and prior notice of its

           introduction published in Government Gazette No 28593 of 10 March 2006.]



     Reintroduction and referral to the Portfolio Committee on Sport and Recreation of the

     National Assembly, as well as referral to the JTM for classification in terms of Joint Rule 160.



     In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the

     Joint Tagging Mechanism (JTM) within three parliamentary working days.



5.   Introduction of Bill

     (1)   The Minister of Sport and Recreation



           (a)   Second 2010 FIFA World Cup South Africa Special Measures Bill [B 16 – 2006]

                 (National Assembly – sec 76) [Explanatory summary of Bill and prior notice of its

                 introduction published in Government Gazette No 28593 of 10 March 2006.]
20 JUNE 2006                                                   Page: 220 of 221




           Introduction and referral to the Portfolio Committee on Sport and Recreation of the

           National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for

           classification in terms of Joint Rule 160.



           In terms of Joint Rule 154 written views on the classification of the Bill may be submitted

           to the JTM within three parliamentary working days.



COMMITTEE REPORTS



National Assembly and National Council of Provinces



1.   Report of the Mediation Committee on the Older Persons Bill [B 68B and B68D – 2003]

     (National Council of Provinces – sec 76), dated 14 June 2006:



         The Mediation Committee, having considered the Older Persons Bill [B68B and B68D –

         2003] (National Council of Provinces – sec 76), as well as the papers referred to it, reports

         that it has agreed to a new version of the Bill [B68F – 2003 (Reprint)].



         The Committee notes with concern the technical errors that occurred in the processing and

         preparation of the printed version of the Bill in the National Assembly. The Committee

         recommends that the Presiding Officers investigate the reasons for the technical errors, and

         report to the Joint Rules Committee on measures to be put in place to avoid similar errors in

         future.
20 JUNE 2006                                    Page: 221 of 221


National Assembly



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