331235_1 by keralaguest

VIEWS: 13 PAGES: 77

									23 February 2011                                 Page: 1 of 77

                       WEDNESDAY, 23 FEBRUARY 2011

                                  _____



                   PROCEEDINGS OF THE NATIONAL ASSEMBLY

                                  ______



The House met at 14.03.



The Speaker, Mr Max Sisulu, took the Chair and requested members to

observe a moment of silence for prayers or meditation.



ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.



                            APPROPRIATION BILL



                              (Introduction)



                         DIVISION OF REVENUE BILL



                                (Tabling)



The MINISTER OF FINANCE: President Jacob Zuma, Deputy President

Kgalema Motlanthe, Cabinet colleagues, MECs for finance, the

Governor of the SA Reserve Bank, Ms Gill Marcus, members of the

diplomatic corps, distinguished guests, Members of the House and hon
23 February 2011                            Page: 2 of 77


Speaker, it is my privilege to introduce the second Budget of

President Zuma’s administration.



Mr President, you outlined our programme of action in the state of

the nation address two weeks ago. Your vision for the future is

abundantly clear:



  We want to have a country where millions more South Africans have

  decent employment opportunities, which has a modern infrastructure

  and vibrant economy and where the quality of life is high.



This Budget, Mr President, reflects the collective determination of

the government to address with passion and energy the challenges of

creating jobs, reducing poverty, building infrastructure and

expanding our economy.



The Budget sets out a financial framework for implementing this

vision, a framework that is sound and sustainable. It recognises

that building South Africa is a multidecade project that must

invigorate our capacity to grow, and must include all South Africans

in that growth.



This Budget sets us on a path, hon members, that will be neither

easy nor uncontested. Hard work and difficult choices lie ahead, but

the journey is certainly under way. We have embarked on the long
23 February 2011                            Page: 3 of 77


walk to economic freedom. All South Africans aspire to these

freedoms:



    Freedom from poverty;

    Freedom from need;

    Freedom to exercise our talents and thrive as individuals; and

    Freedom to work together as communities, as organised social

    formations, as business enterprises, and, above all, as a proud

    and forward-looking nation.



What does this Budget offer?



Mr Speaker, the 2011 Budget ensures:



    firstly, that government can intensify activities that make a

    difference to the lives and prospects of all South Africans;

    secondly, that priority programmes required for implementing

    the New Growth Path are funded; and

    thirdly, that macroeconomic stability is maintained, with

    necessary adjustments to support enterprise and job creation.



In tabling another weighty load of documentation today, our aim is

to display transparently how South Africans benefit from

government’s programmes and policies and how their tax contributions

are spent.
23 February 2011                            Page: 4 of 77


On that note, hon members, we can be proud of the announcement that

South Africa was once again recently rated as the most transparent

of 94 countries when it comes to the availability of Budget

information. [Applause.]



This Budget provides for all sectors of South African society.

For the poor, the Budget continues to expand spending on housing,

rural development, better community services and social assistance

grants for the elderly, the disabled and children in need.



For workers, the Budget emphasises job creation and expenditure on

the “social wage,” including access to health services, education,

social security, transport and municipal infrastructure.



For the business sector, the Budget expands investment in

modernising our infrastructure and transport logistics, accelerating

further education and skills development and supporting research,

technology and industrial investment.



For the small business sector, there are targeted financial and

enterprise development programmes, and tax relief measures. Of

course, we certainly need to do more for small business.



For the youth of our country there is expanded access and financial

assistance for further education, and a range of initiatives aimed

at expanding job opportunities.
23 February 2011                            Page: 5 of 77


All of this, and more, we must do within a sound fiscal framework.

We must also recognise that we are taking steps, this year and next,

on a long-term growth path, a decades-long transformation and

expansion of our social and economic possibilities.



In reflecting on commitments made in last year’s Budget, we can

point to progress on several fronts:



    Savings have again been identified in low-priority categories

    of spending, releasing over R30 billion to frontline service

    delivery allocations.

    Support for the Industrial Policy Action Plan is further

    enhanced. Tax and spending measures are proposed to improve

    investment and trade performance, enhance science and

    technology, accelerate job creation, boost small enterprise

    development, strengthen rural development and provide emerging

    farmer support.

    Education and skills development are bolstered over the period

    ahead through expanding further education colleges, student

    financial assistance, and a new school building programme.

    Spending on economic and social infrastructure of over

    R800 billion is projected over the next three years.

    A new community-based family health care programme is to be

    introduced as part of the national health insurance, while work

    is proceeding on the design and consolidation of our social

    security arrangements.
23 February 2011                             Page: 6 of 77


    At Parliament’s request, we are tabling guidelines on long-term

    fiscal sustainability and debt management.



An opportunity to create hope for young people



Above all, we must ask the question: What are we doing for our

youth? Mr Speaker, we live in an extraordinary time in human history

– a time of immense transition, of profound risks, but also of great

opportunities. We are in the midst of epoch-changing shifts in the

global economy as large fast-growing countries, particularly China

and India, have become major world producers and consumers. Their

weight in world trade, finance and investment and in restructuring

the world’s industries affects every country, every firm and,

indeed, every family.



Fast-growing economies that are raising living standards and

creating jobs have one thing in common: They are continually moving

into new products and improving the ways of producing the things

that they want to sell to others. Adaptation to the disciplines and

the productive possibilities of the new global economy opens up new

opportunity for improving living standards and expanding employment.

But it also presents great challenges because we have to seize these

opportunities and seize them with passion.



We have taken on the responsibility to build a better South Africa.

We have taken on the challenge that the legacy of apartheid left us:
23 February 2011                             Page: 7 of 77


a legacy of disempowerment, landlessness, inequality of opportunity

and outcome, and millions of unemployed young people who cannot see

a realistic prospect for a decent life. Confronting these realities

is not about blaming the past or denying our own shortcomings. It is

about recognising that now is the time to do extraordinary things in

dealing with our particular development circumstances. It requires

new ideas and bold efforts from all South Africans: government,

business, labour, communities and, indeed, every family member.



We must show, across the economy, the game-changing strengths we

have shown on big issues before, from creating our democracy in 1994

to hosting the Soccer World Cup last year.



Now we have to ignite the flame of higher inclusive growth and,

above, all sustain it. We cannot view the fact that 42% of young

people between the ages of 18 and 29 are unemployed as merely a

statistic. Young men and women in cities, informal settlements,

towns and villages may not have jobs. Nonetheless, they possess the

awareness and the ability to learn; they set new fashion trends and

inspire us with their music. They have hope, and look to us to give

meaning to that hope.



In response, we must take measures to ensure that our young people

can look forward to decent work in productive, competitive

enterprises. It means that, as government, we will continue to

strengthen social expenditure, enabling families to commit to
23 February 2011                               Page: 8 of 77


participating in education and community activities, while

supporting the old and sick.



Inclusive growth means strenuous efforts to cut back poverty and

shrink the inequality that continues to blight us. The South African

growth path we envision is not measurable by GDP alone. It must be

an inclusive growth, which especially benefits the many South

Africans who have been left behind.



Inclusive growth also means addressing the climate change challenges

that confront the long-term global outlook. This year South Africa

will host the 17th United Nations Conference of the Parties on

climate change, Cop 17. Our own efforts to green our economy, so to

speak, will come under special scrutiny at that time. Mitigation

initiatives are not just about reducing the dangers associated with

a hotter future, but they also offer significant opportunities to

create jobs and reduce costs in our economy.



And so, in mapping a New Growth Path that will lead to rapid

creation of jobs, that will ensure an equitable distribution of

benefits, that will reduce inequality, ignite industrial development

and transform rural and urban communities, in charting this course,

we are mindful of the specific realities of our own circumstances

and the changing shape of the global economy.



As Comrade Chris Hani so rightly said:
23 February 2011                             Page: 9 of 77


  We want to build a nation free from hunger, disease and poverty,

  free from ignorance, homelessness and humiliation, a country in

  which there is peace, security and jobs.



[Applause.]



It is time to celebrate and embrace the potential of our unemployed

young, knowing that they are our future. How we meet this challenge

will shape the quality of life that our children and their children

will enjoy in the decades to come.



Economic outlook



Mr Speaker, there are encouraging signs of stronger recovery in the

global economy as we enter 2011. But it remains essentially what is

now called a two-speed recovery. There is moderate growth in the

United States and slower growth in parts of Europe, whereas China

and many other emerging economies continue to expand quite rapidly.



The roots of this divergent growth pattern lie in the unbalanced

structure of world growth in the years leading up to the financial

crisis. World growth came to rely too heavily on countries that

exhibited overly high consumption, financed by countries with high

savings and large trade surpluses.
23 February 2011                           Page: 10 of 77


The financial crisis and subsequent recession brought painful

adjustments. However, the shift in world trade, investment,

manufacturing, incomes and consumption is a structural transition

that will take many years, as a multipolar world evolves.



Until the turn of the century, developing countries accounted for

about 20% of global output. This will increase to 40% by about 2015.

So the world is indeed changing and the balance, if you like, is

moving eastward and southward.



Developing economies in Africa, Latin America and South Asia will

play an increasingly important role in the global economy in coming

years as incomes rise and poverty falls.



South Africa’s invitation to join the Brazil, Russia, India, China,

Bric, economies reflects this broadening of the sources of economic

growth. Over the next five years, these economies will account for

36% of world economic growth. We have to construct our own growth

and development strategies to propel our economy forward, create

jobs and, above all, compete on the global stage.



The New Growth Path outlines our approach to accelerate growth and

employment, focusing on several key drivers:



    Continuing and broadening public investment in infrastructure;
23 February 2011                           Page: 11 of 77


    Targeting more labour-absorbing activities in the agricultural

    and mining value chains, manufacturing, construction and

    services;

    Promoting innovation through the “green economy” initiatives,

    and

    Supporting rural development and regional integration.



The latest estimate released yesterday by the Statistician-General

is that the domestic economy grew by 2,8% in 2010. Strong commodity

prices, low interest rates, and faster global growth have been the

main forces behind our economic recovery. Improving household

consumption and accelerating investment will support an increase in

economic growth over the medium term. Real GDP growth is projected

to reach 3,4% in 2011, 4,1% in 2012 and 4,4% in 2013.

Steady employment gains – though inadequate – of about 2% a year

will raise disposable incomes, supporting household consumption and

investment.



Private gross fixed-capital formation – this is investment in our

economy – increased in the second and third quarters of 2010, a

positive sign and a marked turnaround after five successive quarters

of decline. Total investment is expected to grow by 3,9% this year.



The buoyancy of the investment recovery is an important determinant

of future economic growth. Real growth in exports is expected to
23 February 2011                              Page: 12 of 77


average 6,5% a year over the medium term as commodity exports

benefit from strong demand and high prices.



Inflation is forecast to remain within the target range of 3% to 6%,

edging towards the upper end of the range in 2013 as the economy

strengthens.



However, increasing food and oil prices represent serious risks to

the inflation outlook. The price of Brent Crude reached US$107

yesterday. Further increases will put upward pressure on prices more

broadly.



The improved terms of trade for South Africa contributed to a better

current account deficit for 2010 than was expected a year ago. As it

widens from the 3,2% of GDP expected this year to 5% in 2013, we

would like it to reflect rapidly rising investment rather than

higher consumption.



Macroeconomic stability in an uncertain world



Mr Speaker, the growth and transformation of financial markets in

recent decades have seen increased volatility of exchange rates and

capital flows. Global commodity markets now account for significant

fluctuations in prices for our energy imports, mineral exports, and

food supplies.
23 February 2011                           Page: 13 of 77


The macroeconomic environment facing South Africans – through

interest rates, exchange rates, inflation, and credit conditions –

can be destabilised by those international shocks. Once again, there

is a prospect that something that has nothing to do with how we

manage our economy can act as a disruptive factor. The macroeconomic

policy’s task is to provide a stable and predictable economic

environment by offsetting such shocks as far as possible.



Our monetary policy, designed to target inflation, has been

conducted successfully by the South African Reserve Bank, achieving

the current low rate of inflation and interest rates.



Fiscal and monetary policy will continue to work in partnership.

Monetary policy, conducted by the Reserve Bank, will continue to be

focused on controlling inflation, and we will continue to ensure

that fiscal policy is countercyclical within a sustainable long-term

framework.



Movements in the exchange rate affect different sectors of the

economy in different ways, and present difficulties in macroeconomic

policy for many countries. Recognising the impact of rand strength

on the manufacturing industry, in particular, we announced measures

in October, during the Medium-Term Budget Policy Statement, MTBPS,

to moderate the potential effect of capital inflows.
23 February 2011                           Page: 14 of 77


    Firstly, we said that foreign exchange regulations were amended

    to permit greater foreign investment by South African

    institutions and individuals.

    Secondly, we stepped up foreign exchange purchases by the

    Reserve Bank, and this has helped to moderate upward pressure

    on the rand.



As a result of these policy adjustments and in line with shifts in

investor sentiment globally, the rand depreciated from December 2010

to mid-February 2011 by about 10% on a trade-weighted basis.



During 2010 South Africa received net inflows of R92 billion in

liquid foreign capital, which contributed to upward pressure on the

exchange rate. However, since December last year, South Africa

experienced some reversal in these capital flows. Along with

uncertainties and volatility in global financial markets, this

contributed to the depreciation of the rand.



Furthermore the increases in oil and food prices I referred to

earlier pose significant risks to the inflation outlook both

globally and domestically. Government will continue to assist the

Reserve Bank to accumulate foreign exchange reserves when market

conditions are favourable and engage in foreign currency swaps to

moderate the effect of capital flows on the exchange rate.
23 February 2011                           Page: 15 of 77


In 2010, for example, we spent R53 billion assisting the Reserve

Bank and using some of its own resources in order to balance this

volatility in the rand.



Overly rapid currency depreciation carries risks to macroeconomic

stability, however, and so we expect the Governor of the Reserve

Bank to be vigilant in monitoring inflationary pressures and

ensuring that monetary policy is effective in meeting our inflation

targets. The credibility of monetary policy in achieving our target

inflation range, combined with our commitment to fiscal discipline,

are important foundations for moderating exchange rate volatility

which, in itself, is important for better growth in South Africa.



Changes in the volume and direction of capital flows may be

significant over the year ahead, and are largely beyond our control

or influence. We will allow the actions announced in the MTBPS to

have their full effect and continue to monitor capital flows.



Other countries also experienced high capital inflows in 2010.

Several, including Brazil, South Korea, and Thailand, introduced tax

or regulatory measures to deter those investment flows and currency

speculation. We have examined these options and their impact, and

will continue to monitor the adjustments made in other countries,

while recognising that circumstances vary from country to country.
23 February 2011                           Page: 16 of 77


National Treasury is very cognisant of the risk of financial

instability and currency volatility that can arise from large

capital movements. If necessary, appropriate steps to moderate these

effects will be taken together with the Reserve Bank.



Transformation of the financial sector



Mr President, you pointed out in your state of the nation address

that our financial sector proved to be remarkably resilient in the

face of the recent financial crisis and the global economic

meltdown. In line with global developments, there are further steps

to be taken to enhance the regulatory framework and improve

financial services. The proposed reforms include a shift to a “twin

peak” system of financial regulation, with market conduct under the

Financial Services Board, and prudential regulation in the Reserve

Bank. An interagency financial stability oversight committee will be

formed, and a council of financial regulators. A policy discussion

paper sets out the new framework for how the financial sector could

better serve South Africa.



Among the issues to be addressed are the findings of Judge Jali’s

inquiry into competition in banking – findings that are echoed by

many people’s complaints that bank charges are high and opaque. A

senior citizen, Mr Bill Nobile, wrote to me last week:
23 February 2011                           Page: 17 of 77


  We do not fully understand the complexity of the payment systems

  for credit and other cards but there does appear to be

  considerable leeway in reducing costs to the customer, including

  the elderly.



[Applause.]



I have met with the chief executives of our banks to take up this

issue, and I believe it is time to put in place measures that will

ensure that banking charges are fairly set, are transparent and do

not create undue hardship. [Applause.]



As part of the work of modernising and harmonising our investment

framework, Treasury is releasing two further discussion papers, one

on the regulation of foreign direct investment, and another on the

prudential framework for institutional investors. We look forward to

consultation with stakeholders on these issues over the coming

months.



The fiscal framework



South Africa adopted a countercyclical fiscal stance two years ago,

ahead of the crisis. We entered the recent recession with a healthy

fiscal position – we have to thank Minister Manuel for that – and a

comparatively low level of debt. This allowed us to maintain

government spending despite a sharp deterioration in revenue.
23 February 2011                           Page: 18 of 77




Government spending continues to grow over the next three years,

though at a slower rate than in the recent past. Since the MTBPS

last year, several additional spending allocations have been made.

They include a provision to respond to the damage caused by last

year’s floods.



The impact of slightly slower growth in revenue and the additional

expenditures as a result caused a deficit for the next year of 0,7%

of GDP higher than we projected in October. The trend remains

downwards, however, with a deficit of 3,8% of GDP expected in 2013-

14. This reduction in the deficit over the next three years is

consistent with stabilising the growth in our debt and the conduct

of a countercyclical fiscal policy. National government net debt is

set to rise from R526 billion at the end of 2008-09 to over

R1,3 trillion in 2013-14. I don’t know how many noughts those are!



Mr Speaker, to ensure that our spending on schools, hospitals and

roads is not crowded out by an ever-rising interest burden,

government debt needs to be managed sustainably. We don’t want an

unmanageable increase in expenditure, nor do we want the severe

austerity measures some Western countries have had to adopt.



In view of these considerations, Parliament asked the National

Treasury to investigate how we might reinforce long-term

sustainability of our public finances. For the further consideration
23 February 2011                           Page: 19 of 77


of Parliament, we will be proposing a set of fiscal guidelines,

informed by three principles:



    The first is a countercyclical fiscal stance, to counteract

    variations over the business cycle. What this simply means is

    that there will always be times when growth is good and revenue

    is good and there will be times when growth is not so good and

    revenue is poor. We need to save in the good times and spend in

    the bad times. And how we manage these cycles as they go on is

    the crucial challenge that this countercyclical fiscal policy

    will allow us to meet.

    The second is long-term debt sustainability, to ensure that

    financing costs do not crowd out expenditure on public

    services. By this we mean we can borrow, but we must make sure

    that the interest that we pay on our debt does not become so

    huge that we do not have enough money to spend on housing,

    welfare, education and other priorities in South Africa.

    The third is intergenerational equity, so that our children’s

    wellbeing is not compromised by short-term interests. It is

    easy to borrow now, but future generations will have to pay for

    that borrowing. So we need some balance. [Applause.]



Developing fiscal and budgetary guidelines will strengthen

parliamentary oversight, encourage transparency and enhance

accountability.
23 February 2011                           Page: 20 of 77

Division of revenue



Mr Speaker, in respect of the Division of Revenue, our Constitution

sets out criteria for the sharing of nationally-raised revenue

between national departments, provinces and municipalities.

Proposals for this division are set out in the Division of Revenue

Bill that is in this pack.



Total expenditure from the National Revenue Fund of R889 billion is

provided for in 2011-12, which is 9,8% more than the revised

estimate of the current financial year.



    Firstly, debt service costs will amount to R77 billion, rising

    to R104 billion in 2013-14. Though our overall debt burden

    remains moderate, the size of the budget deficit at present

    results in debt service costs rising faster than any other

    category of spending over the period ahead.

    Secondly, in keeping with established practice, the budget

    framework includes an unallocated contingency reserve of

    R4 billion this year. This allows for unforeseeable and

    unavoidable spending requirements next year, and future policy

    priorities over the medium term.

    Thirdly, this leaves R808 billion to be allocated between

    national, provincial and local government in 2011-12. Minister

    Sisulu, only R808 billion. [Laughter.] National departments are

    allocated 47% of the total, provinces 44% and municipalities
23 February 2011                           Page: 21 of 77


    just under 9%. Remember that municipalities are also supposed

    to generate their own revenue. National transfers to local

    government have increased substantially, and will amount to

    over R70 billion in budgetary assistance and infrastructure

    grants in 2011-12.



Revisions to baseline, savings and reprioritisation



Mr Speaker, the proposed Medium-Term Expenditure Framework, MTEF,

has been structured to enable government’s policy priorities to be

implemented in accordance with delivery agreements signed with the

President.



The 2011 Budget makes available R94 billion in addition to baseline

allocations over the next three years. Savings of R30 billion were

identified, of which R21 billion was reprioritised within

departmental baselines to meet existing commitments.



In order to accommodate additional funding for the National Student

Finance Aid Scheme, NSFAS, all departments were required to effect

unprecedented spending cuts of 0,3%, amounting to R6 billion, which

went to Minister Nzimande. [Applause.] I thought he would smile a

little bit more, but he wants more! [Laughter.]
23 February 2011                           Page: 22 of 77


I want to place on record our appreciation to Cabinet colleagues and

departmental accounting officers for their co-operation in this

unprecedented exercise.



Part of this revision to baseline allocations is the carry-through

cost of the 2010 wage agreement, which requires an additional

R39,4 billion for remuneration of employees over the MTEF period.

The Public Service salary bill has doubled over the past five years,

from R156 billion to R314 billion. This constitutes just under 40%

of consolidated noninterest expenditure.



Consolidated government expenditure



Members of the House will know that the spending plans of national

government departments, public entities and social security funds

are set out in considerable detail in the Estimates of National

Expenditure. Estimates of consolidated government expenditure for

the period ahead are set out in chapter 8 of the Budget Review.



Consolidated expenditure is projected to increase from R897 billion

in 201-12 to R1,2 trillion – we are all growing up! – in 2013-14,

with noninterest spending on public services growing by an average

of 8% a year.



What are we spending the money on?
23 February 2011                             Page: 23 of 77


Creating jobs



Firstly, creating jobs. As you have emphasised, Mr President, our

aim is to put development first, and not dependence on welfare. As

isiXhosa-speaking people say: Masizenzele. Let’s do it ourselves.

[Laughter.] [Applause.] I was thinking of someone who would say that

we should not do it ourselves. [Laughter.]



The Budget therefore proposes a range of measures to accelerate

employment creation over the period ahead:



    As announced by the President, R9 billion has been set aside

    over the next three years for a jobs fund to co-finance

    innovative public- and private-sector employment projects.

    Further Education and Training colleges are allocated

    R14 billion in the period ahead and student financial

    assistance will be stepped up.

    Over R20 billion goes to Sector Education and Training

    Authorities, Setas, and R5 billion to the National Skills Fund,

    which have key responsibilities for training work seekers.

    The Expanded Public Works Programme is allocated R73 billion

    over the next three years, including community-based projects,

    environmental and social programmes and maintenance of roads

    and infrastructure.

    Tax incentives have been renewed for manufacturing investment

    of R20 billion, with a focus on job-creation potential.
23 February 2011                           Page: 24 of 77


    Investment will be increased in housing, residential

    infrastructure and services.

    Small enterprise development initiatives will be strengthened,

    including a focus on employment activation by the National

    Youth Development Agency, NYDA. [Applause.]

    Initiatives are under way to promote rural employment, and

    provide stepped-up support for agricultural producers.

    Funding is allocated for renewable energy, environmental

    protection and green economy initiatives.

    As promised last year, details of a R5 billion youth employment

    subsidy are set out in a discussion paper, for further

    consideration in this House and at the National Economic

    Development and Labour Council, Nedlac.



Now, if we add all of these, we have approximately R150 billion to

spend both on job creation and on skills-related activities over the

next three years.



We must offer young work seekers real hope, where at present there

is despair. We need to do things differently, as the President often

urges us. We need to have the courage to pilot new approaches and

build new partnerships, promoting innovation throughout our economy.



Improving the quality of education
23 February 2011                           Page: 25 of 77


Education takes up the largest share of government spending – 21% of

noninterest allocations – and receives the largest share of

additional allocations.



    An amount of R8,3 billion over the MTEF period is added for

    schools infrastructure. A programme to address backlogs in

    school facilities over a three-year period will be administered

    by Minister Motshekga’s department.

    Just under R1 billion is added for the Funza Lushaka teacher

    bursaries and bursaries for postgraduate students in natural

    sciences.

    R9,5 billion is provided for expanding Further Education and

    Training colleges and skills development. Including adjustments

    for the remuneration of teachers, a total of R24,3 billion will

    be added to education and skills spending over the next three

    years, which rises from R190 billion next year to R215 billion

    in 2013-14.



Ministers Nzimande and Motshekga exercise stewardship over this

moeney, Mr Speaker, over the largest network of service providers in

our economy, and over the most important programme of investment in

future growth and distribution.



Enhancing health services
23 February 2011                            Page: 26 of 77


Several further steps in implementing Minister Motsoaledi’s ten-

point plan for reform of the health services are accommodated in

this Budget. Total spending on public health services has increased

strongly over the past three years to R113 billion projected for the

next year.



In addition to provision for higher personnel expenditure over the

period ahead, over R8 billion is added to specific health service

interventions, laying the foundations for the National Health

Insurance. This includes, amongst other things:



    R1,2 billion to introduce family health care teams;

    money to improve the quality in health facilities, medical

    equipment and hospital systems;

    improvement in the district-based maternal and child health

    services;

    a new office of standards compliance to inspect and certify

    hospitals;

    funding for the Department of Health to lead the necessary

    institutional and management reforms;

    revitalising health infrastructure, including a new

    infrastructure grant for provinces; and

    expanding capacity to train medical doctors and nurses.



Let me emphasise that one of the things that Minister Motsoaledi and

I are quite anxious about is that, as far as tertiary hospitals and
23 February 2011                           Page: 27 of 77


the new medical training facilities are concerned, if we are to

deliver them with efficiency, it is important that they are co-

ordinated at a national level.



Total expenditure on the comprehensive HIV/Aids conditional grant

will amount to R26,9 billion over the MTEF period, based on an

increase in the number of people on treatment from 1,2 million this

year to 2,6 million people by 2013-14.



The phasing in of the national health insurance will require

substantial reforms to address imbalances across the public and

private sectors and expand health professional training. The

financial and organisational implications of these reforms are being

jointly addressed by the Department of Health and the Treasury.



Making communities safer



Additional resources, Minister Mthethwa, are also allocated to the

Safety and Security cluster led by you and Ministers Radebe, Cwele

and Mapisa-Nqakula for the period ahead.



A total of R12,8 billion goes to the departments of Police, Justice

and Constitutional Development, Correctional Services and the

Independent Complaints Directorate. The Budget provides R2,1 billion

for an increase in Police personnel to 202 260 in 2013-14, from
23 February 2011                             Page: 28 of 77


about 190 000 at present. They have really done their calculations

well!



An additional R670 million is allocated for the upgrade of

information technology, and R490 million is for the construction of

courts, including the High Courts in Nelspruit and Polokwane.

[Applause.] That must be people from Polokwane applauding.

[Laughter.]



Total expenditure on public order and safety functions will amount

to R91 billion next year.



Defence



On Minister Sisulu’s Defence Vote, further allocations are made for

assistance in safeguarding the country’s borders, and to upgrade and

maintain border facilities and equipment.



Additional funding of R1,3 billion will bring total expenditure on

Defence and State Security to R38,4 billion next year.



Economic development and industrial promotion



Additional allocations in support of industrial and economic

development over the period ahead include:
23 February 2011                           Page: 29 of 77


    R600 million for enterprise investment incentives;

    R735 million for the Competition Commission and other economic

    regulatory agencies;

    R250 million to the Industrial Development Corporation to

    support agroprocessing businesses;

    R120 million for the National Tooling Initiatives, so all of us

    can learn to be carpenters;

    R282 million for the micro-finance Apex Fund; and

    R55 million for Khula Enterprises to pilot a new approach to

    small business lending.



Under the guidance of Minister Davies, about R10 billion will be

spent on the Industrial Policy Action Plan investment promotion over

the MTEF period, including the automotive production and development

programme, clothing and textile production incentives, the film and

television production incentive and support for small manufacturing

and tourism enterprises. The word “incentive” means that we are

giving money away.



Small businesses are an important source of jobs. Businesses that

employ fewer than 50 workers account for 68% of private sector

employment.



We need to get our small business sector growing and growing fast.

Allow me to share just a few inspiring examples from small business

entrepreneurs in South Africa:
23 February 2011                           Page: 30 of 77


    Mr Kosi is a young man with a passion for building skills in

    his community, Willowvale. He has set up a small ICT training

    centre where he has trained more than 120 people in IT skills.

    Mr Norman Mpedi is an ex-MK combatant who, after being forced

    to live off the bush in Angola, discovered the umviyo fruit and

    has grown this into the thriving juice-making Nguni Juice.

    [Interjections.] That’s what it is called. So here is an ex-

    combatant who one would think would not do this kind of thing

    and he has shown what entrepreneurship and creativity can do.

    Our third example is that of Antonio Pooe who started Exactech

    Fraud Solutions in 2007 as a small one-person business

    operating out of his home. He has since grown it into a company

    with offices in Johannesburg, Cape Town and Durban and now

    employs 24 people.



Let’s congratulate them. [Applause.]



These are but a few examples of the thousands of small and micro

businesses which have taken root and fill a vital space in our

economy. In many instances they have been supported by financing

from both the private sector and programmes of the Department of

Trade and Industry.



Rural development and agriculture
23 February 2011                           Page: 31 of 77


These are crucial areas in our economy. Under Ministers Joemat-

Pettersson and Nkwinti government’s land reform and agricultural

development programmes are focused on rural job creation and poverty

reduction, while expanding agricultural production and improving

food security.



Additional allocations amounting to R2,2 billion go to these

functions, including a further R400 million for the comprehensive

agricultural support programme and the Land-Care Programme grant and

funding to enable a further 5 000 recruits into the National Rural

Youth Services corps.



Including provincial allocations for agricultural support, a total

of R19 billion will be spent on rural development and agriculture in

2011-12.



Transport



Minister Ndebele, I have no money for tolls right now. [Laughter.]

Additional allocations of R10,3 billion are made over the MTEF for

transport infrastructure and services on Minister Ndebele’s Vote.



    This includes R3,8 billion for maintenance of the coal haulage

    road network, financed from the increased levy on electricity

    collected from Eskom.
23 February 2011                           Page: 32 of 77


    An additional R1,5 billion goes to provinces for road

    maintenance and weighbridges, as part of a new conditional

    grant for roads infrastructure, so that we don’t complain about

    potholes any more.

    Funds are also stepped up for the Passenger Rail Agency of

    South Africa, for replacing signalling infrastructure and

    refurbishing rail coaches.

    A further R2,5 billion goes to municipalities for public

    transport systems and infrastructure improvement.



Consolidated government transport spending will amount to

R66 billion next year.



Environmental protection and adapting to climate change



As I mentioned earlier, this is also a crucial task. Funding

amounting to R800 million has been set aside over the next three

years for “green economy” initiatives, including those recently

announced by Minister Patel. Specific allocations will be made in

the Adjustments Budget.



Additional allocations for research into energy-efficiency

technologies are proposed – Minister Peters will be happy with that

– while provision is also made for efforts to prevent wildlife

trafficking and improved air quality, waste disposal and coastline

management.
23 February 2011                             Page: 33 of 77


A total of R2,2 billion is allocated for environmental employment

programmes over the medium-term period and funding is provided on

Minister Molewa’s Vote for hosting the Conference on Climate Change,

Cop 17, in November this year. Total spending on the Integrated

National Electrification Programme will increase to R3,2 billion in

2013-14.



Housing and community amenities

Mr Speaker, recent research published by the Development Policy

Research Unit confirms that significant progress has been made in

the delivery of housing, water, sanitation and electricity, as the

President mentioned in his speech.

    The proportion of poor households living in formal dwellings

    has increased from 47% in 1994 to 66%;

    Households with piped water have increased from 28% to 53%;

    Those with electricity for lighting from 20%to 75%; and

    Those with flush or chemical sanitation from 18% to 37%.

Additional allocations to Minister Sexwale’s Vote for human

settlements upgrading and municipal services amount to R4,9 billion

over this period.



Two new grants to provinces and municipalities are proposed under

Minister Shiceka’s oversight to respond more rapidly to disasters.



A further R3,6 billion is added for water infrastructure and

services, including funding for the acid water drainage threat
23 February 2011                           Page: 34 of 77


associated with abandoned underground mines. A report on this by a

team of experts has been approved by Cabinet, and Minister Molewa is

taking the lead in consulting with industry on a shared and co-

ordinated response to the challenge.



Government aims to upgrade 400 000 homes in informal settlements by

2014. A new urban settlements development grant contributes

R21,8 billion over the next three years for these projects.



Total spending on the housing, water and community amenities social

wage will amount to R122 billion in 2011-12.



Social protection



The social protection budget is another substantial part of the

social wage in South Africa. This practical expression of a caring

society amounts to R147 billion in 2011-12, and provides income

support to poor households and has been extended over the past

decade, mainly through the phased extension of the child support

grant to older children.



At present, close to 15 million fellow citizens receive social

grants on Minister Dlamini’s Vote, equivalent to more than a quarter

of the population. Thirty-eight per cent of social grant payments go

to pensioners, 35% to children in poor households, and 19% to the

disabled.
23 February 2011                           Page: 35 of 77


With effect from April this year:

    The monthly state old age grant and the disability and care

    dependency grants will rise by R60 a month to R1 140;

    [Applause.]

    and here’s a plus: For pensioners over the age of 75, the old

    age grant will rise by a further R20 a month to R1 160;

    [Applause.]

    Foster care grants will increase by R30 to R740;

    The child support grant will increase from R250 to R260 in

    April, and to R270 in October. [Applause.]

    Revisions are also proposed to the means test thresholds, which

    will benefit households with modest incomes that reduce their

    grant entitlements.



Social protection also includes unemployment insurance, occupational

injury compensation and the Road Accident Fund. Proposals are now

well advanced for alignment and consolidation of these social

security arrangements, together with the introduction of a mandatory

basic retirement savings plan. Over R9 billion a year is currently

spent in administering our fragmented social security system. An

integrated and better co-ordinated social security system will offer

better protection to vulnerable households, at a lower

administrative cost, and lay a foundation for future generations.



That’s all the spending. Now, where’s the money going to come from?
23 February 2011                            Page: 36 of 77

Revenue estimates and tax proposals



Let me turn, Mr Speaker, to the revenue required for these spending

plans. Members of the House have been very patient, and may be

thinking of the need for liquid refreshment, and the cost thereof! I

will say something about that in a moment. But first let me report

on the revenue side.



Revenue outcomes and tax expenditures



I am pleased to report that tax revenue has recovered during 2010-

11. The revised estimate is R672 billion, or 12,3% higher than last

year.



Personal income tax has increased strongly, as have VAT receipts and

customs duties. However, corporate income tax revenue has remained

below projections, indicating the effect of the 2009 recession on

company profits and maybe something else.



Total budget revenue, including provincial receipts, and income of

social security funds and public entities, is R755 billion, or

13,6 % above the 2009-10 estimate.



This Budget Review includes, for the first time, a tax expenditure

statement. This is a summary of potential tax revenues foregone as a

result of various tax incentives. The purpose of the statement is to
23 February 2011                           Page: 37 of 77


make transparent those fiscal incentives or indirect subsidies that

lie behind the headline revenue and spending numbers. The initial

estimate puts the value of tax expenditures – that’s money that we

give away in one form or another – at R78 billion a year.



We are also publishing the latest edition of the annual Tax

Statistics, which provides the most detailed view to date of our tax

base and revenue contributions and helps to complete the overall

picture of the budget system.



Tax proposals – individuals, trusts and non-business entities

Mr Speaker, revisions to the personal income tax brackets and

rebates are proposed, which represent relief for individuals to the

extent of R8,1 billion. These adjustments compensate virtually only

for the effects of inflation for the coming year and the balance of

the fiscal drag effect that could not be accommodated last year.



From March 2011:

    Tax will be payable only on income above R59 750 for taxpayers

    below age 65, and R93 150 for those 65 and older.

    A third rebate of R2 000 per year is proposed, increasing the

    tax threshold for taxpayers aged 75 and older to R104 261. In

    other words, the over-75s get an additional tax break.

    An increase in the annual tax free interest income to R22 800

    for individuals below 65 years is proposed, and to R33 000 for

    individuals 65 years and over. The Treasury is exploring the
23 February 2011                           Page: 38 of 77


    possibility of incentivised savings schemes for housing and for

    education as alternatives to this exemption.

    The tax free lump sum benefit upon retirement will increase

    from R300 000 to R315 000.



As in past years, inflation-related increases will be made to the

monthly thresholds for tax-deductible contributions to medical

schemes. These deductions and those for qualifying out-of-pocket

medical expenses will be converted into tax credits with effect from

March 2012. A tax credit is more equitable since it provides for an

equal benefit to all taxpayers regardless of their income. Right

now, it is the wealthier people who benefit.



Changes to the tax treatment and administration of contributions to

retirement funds are also proposed. These will simplify

administration and improve the fairness of the system. There will be

extensive consultation on this matter. The proposals include the

treatment of employer contributions as a fringe benefit, limits on

tax deductible contributions and the alignment of the tax treatment

of provident and pension funds.



Some of the ideas are that from March 2012, an employer’s

contribution will be treated as a taxable fringe benefit, and

employees will be allowed to deduct possibly up to 22,5% of taxable

income for contributions to approved retirement funds. It was

proposed that a maximum of R200 000 a year will be deductible. With
23 February 2011                           Page: 39 of 77


a view to protecting workers’ savings, it is proposed that the one-

third lump-sum withdrawal limit applicable to pension and retirement

annuity funds should also apply to provident funds.



What is happening here is that people, when they get into a bit of

difficulty or need, withdraw all of their savings and, at the end of

their working life don’t have much on which to depend. So, these are

some of the proposals that will be looked at.



The following capital gains exclusion amounts will be increased from

1 March 2011:



    For individuals and special trusts, from R17 500 to R20 000;

    On death, from R120 000 to R200 000;

    On disposal of a small business when a person is 55 years or

    older, from R750 000 to R900 000.



The annual trading income exemption for public benefit organisations

will increase from R150 000 to R200 000, and for recreational clubs

from R100 000 to R120 000.



Withholding tax on gambling winnings



Mr Speaker, we have decided to become a bit innovative this year and

impose a withholding tax on gambling winnings. Last year we

indicated that the taxation of gambling winnings would come under
23 February 2011                            Page: 40 of 77


review. With effect from April 2012, all winnings above R25 000,

including pay-outs from the National Lottery, will be subject to a

final 15% withholding tax. This is in line with practice in a number

of other countries, such as the United States, where that tax is

30%. [Applause.] We hope it will assist in discouraging excessive

gambling. [Interjections.]



The SPEAKER: Order, hon members!



The MINISTER OF FINANCE: Of course, if you want to contribute to the

fiscus, please do go and gamble so that we can get that 15%!

[Laughter.] Despite the obvious merits of this argument, I expect

vigorous debate during the parliamentary process, just not today,

please!



National health insurance



Proposals are under review for a national health insurance system,

as part of the broader restructuring and enhancement of health

services. There will be substantial cost implications. We will

consider and consult – let me repeat; we will consider and consult –

on options for meeting the funding requirements, including a payroll

tax payable by employers, an increase in the VAT rate and a

surcharge on individuals’ taxable income.
23 February 2011                             Page: 41 of 77


Now let me repeat before you all get anxious about this. These are

all options. We will have to consider the pros and the cons of each

of these options. We do require more money to get this scheme going

but ultimately it will benefit all South Africans. The question is:

Where do we get it from and what is the best form in which to do it?



The fiscal and financial implications of health system reform, and

alternative revenue sources, will be examined in the year ahead.



Tax proposals – businesses



For businesses, the following is proposed:



    As indicated in previous years, a dividends tax will take

    effect on 1 April 2012, replacing the secondary tax on

    companies.

    Dividend schemes that undermine the tax base will be closed by

    treating the dividends at issue as ordinary revenue. These

    include dividend cessions, where taxpayers effectively purchase

    tax free dividends without any stake in the underlying shares.

    Government introduced the concept of a venture capital company

    into the Income Tax Act in 2009, but the response to it was

    poor. The approach will be refined so as to facilitate greater

    access to equity finance by small and medium businesses and

    junior mining companies.
23 February 2011                          Page: 42 of 77


    From March 2011, the turnover tax for micro businesses with an

    annual turnover up to R1 million will be adjusted so that tax

    will be payable only if turnover exceeds R150 000 a year. In

    other words, below that, you pay no tax. The rate structure

    will also be reviewed.

    Also, from 1 March 2012, micro businesses that register for VAT

    will no longer be barred from registering for turnover tax.

    The learnership tax incentive, designed to support youth

    employment, will expire in September 2011. Government proposes

    to extend this for a further five years, but subject to an

    analysis of its effectiveness with all stakeholders. The take-

    up until now has been low.

    A youth employment subsidy is proposed. Subject to completion

    of consultations, it will take the form of a tax credit costing

    R5 billion over three years to be administered by the South

    African Revenue Service through the PAYE system. This is

    subject to further consultations.

    To support the objectives of the Industrial Policy Action Plan

    and the New Growth Path, certain investments qualify for tax

    relief. Consideration will be given to expanding such

    incentives for labour intensive projects in industrial

    development zones.



Indirect taxes
23 February 2011                          Page: 43 of 77


    The transfer duty exemption threshold will be increased from

    R500 000 to R600 000.

    Excise duties on alcoholic beverages will be increased by

    between 4,5% and 10,3% – an increase of 6,4 cents ...

    [Interjections.] ... wait a minute, this is the part you need

    to consider before you go and have a drink... for a 340ml can

    of beer, 13,5 cents per bottle of wine, or R2,86 for a bottle

    of spirits - now, Mr President, I must get this one right -

    izinyembezi zika-Queen. [Queen’s tears.] It comes from his

    territory. [Laughter.]

    Taxes on tobacco products will increase between 6% and 10,2%;

    it will be 80 cents more for a packet of cigarettes.

    [Applause.]

    Currently there is an ad valorem excise tax on motor vehicles.

    The rate increases as the price of the vehicle increases. These

    rates will remain unchanged below a purchase price of R900 000.

    For vehicles above R900 000, the tax rate will increase to a

    maximum of 25%, from 20% at present. [Applause.]

    The general fuel levy will increase by 10 cents a litre on both

    petrol and diesel on 6 April 2011.

    The Road Accident Fund levy will be increased by 8 cents to

    80 cents a litre.

    Increases will take effect on 1 October 2011 in the air

    passenger departure tax on flights to international

    destinations.
23 February 2011                             Page: 44 of 77


       The levy on electricity generated from nonrenewable and nuclear

       energy sources will increase by 0,5c/kWh to 2,5c/kWh from

       April 2011. The increase should not impact on electricity

       tariffs, as it has already been taken into account in the

       National Energy Regulator’s approved tariff structure.



Tax administration



Mr Speaker, allow me to pay tribute again to the continued support

that all of us received from millions of honest taxpayers. Can we

applaud them, please? [Applause.] Their contributions are reflected

in the recovery of tax revenue this year. We have been able to

expand spending where other nations have been forced into austerity

adjustments. Even those who have not contributed fully to date have

begun to come forward to take advantage of the Reserve Bank and

Sars’ voluntary disclosure programmes. Others who wish to do so have

until the end of October this year to join the 1 200 applicants so

far.



Administrative reforms will continue to focus on ensuring that all

those who earn an income through employment or other economic

activity pay what is due to the fiscus.



This year, Sars will turn its attention to enhancements to the

business tax process, including corporate income tax, VAT and the

enhanced turnover tax for emerging businesses. As with personal
23 February 2011                           Page: 45 of 77


income tax, a prerequisite for these improvements is an accurate

picture of all business entities no matter their size or tax

liability. Sars, in partnership with other state institutions, will

make significant improvements to the business registration process

this year, including conducting a door-to-door drive in all sectors

of our economy to complete the picture.



Tax and customs evasion remains a serious threat. Working together,

the Police, the prosecuting authority, the Financial Intelligence

Centre and Sars ensured that more than 200 taxpayers were convicted

of fraud and tax evasion during the last six months alone.



Recently, customs officers with the support of the police impounded

nearly 3 000 illegally imported second-hand vehicles, two

significant tobacco smuggling rings have been snuffed out ...

[Laughter.] ... and a tobacco manufacturer has been shut down in the

last month. We are also, in conjunction with the tobacco industry,

investigating a new method of marking and authenticating legal

cigarettes with a counterfeit-proof digital system to replace the

current diamond mark.



Mr Speaker, the sector most visibly affected by the illicit economy

in recent years has been the clothing and textile industry,

resulting in significant loss of jobs in local manufacturing plants.

In the coming months a multidisciplinary task team comprising

representatives of the manufacturing, importing and retail
23 February 2011                            Page: 46 of 77


industries and a range of public sector stakeholders, will begin

interventions across the entire value chain to clamp down on illicit

clothing and textile imports.



Measures to combat fraud and corruption



Mr Speaker, public procurement plays a significant part in the

economy and is central to government services. However, citizens and

taxpayers do not get full value for money, as we have said

repeatedly, because this is an area vulnerable to waste and

corruption. This compromises the integrity of governance and

frustrates the pace of service delivery.



Alongside the work of the competition authorities in addressing

supplier collusion and tender-rigging, a strong procurement

framework is critical to boosting jobs and service delivery. The

first round of measures announced in October will come into effect

this year:



    Government departments will be required to establish rigorous

    demand management procedures, including submission of advance

    tender programmes for the next financial year to the relevant

    Treasury authority. This will be so throughout government.

    Limits will be prescribed for variation orders, to restrict

    significant changes to procurement orders and bring our system

    in line with international standards.
23 February 2011                           Page: 47 of 77


    Companies bidding for tenders will be required to disclose the

    identity of all directors ... [Interjections.] [Applause.] ...

    to determine whether any of the directors are government

    officials and to establish whether they are tax compliant.



There are currently 53 investigations involving procurement

irregularities – there are many more irregularities – involving

contracts worth about R3 billion. Minister Radebe recently reported

that 65 people linked to some of these investigations have been

arrested and brought before the courts. More than R250 million has

been seized by the state.



Sars is investigating another 9 cases of tender fraud, with a total

value of approximately R1,7 billion. Sars has also increased its

analytical capacity with the aim of ensuring that vendors winning

state contracts satisfy their tax obligations fully. As at the end

of January 2011 Sars had identified some 13 000 vendors who have won

state contracts and who owe taxes amounting to over R1 billion.



Mr Speaker, as we have said, we have a shared responsibility to

prevent corruption and we call on all citizens to blow the whistle

on corruption and to report any procurement irregularities to the

relevant authorities. [Applause.]



In this regard, we welcome the announcement from Business Leadership

South Africa that it intends to name and shame or expel members who
23 February 2011                           Page: 48 of 77


offer or accept bribes, or break laws while doing business. Let’s

applaud their gesture. [Applause.]



Equally important is the call of this government to its managers to

ensure that our communities and our taxpayers get full value for

their money. Poor delivery and stealing from the fiscus are never

acceptable. Senior managers of our institutions and municipalities

are expected to work actively to improve their procurement processes

and oversight.



Infrastructure investment, city planning and development finance



Public sector infrastructure spending

Mr Speaker, government and state-owned enterprises will spend more

than R800 billion over the next three years on new power stations,

road networks, dams and water supply pipelines, rail and port

facilities, schools, hospitals and government buildings. This builds

on the steady progress made over the past decade, which saw the

contribution of government and public enterprises to gross fixed

capital formation rise from 4% of GDP in 2000 to 8,6% in 2009. These

are long-term investments in the future of our country, and in the

capacity of the economy to grow and create jobs for generations to

come.



Major projects under way include, as you know:
23 February 2011                           Page: 49 of 77


    the Medupi power station;

    the Transnet multiproduct pipeline; and

    the freeway improvement scheme.



These investments are largely financed through borrowing, with costs

recovered from future electricity consumers and road users.



As part of a long-term strategy for modernising public transport in

metropolitan areas, the Passenger Rail Agency of South Africa is

embarking on an 18-year programme to replace its coach and

locomotive fleet at an estimated cost of R86 billion.



While infrastructure spending in the lead-up to the Soccer World Cup

assisted in moderating the impact of the recession on South Africa,

there has been an apparent deterioration in government construction

spending over the past year.



The challenge of intensifying infrastructure spending over the

period ahead will require attention to planning, budgeting and

contract management in national and provincial departments and

municipalities.



Planning and financing cities for inclusive growth



It is time for special initiatives to accelerate growth and

development in South Africa’s cities, which have immense potential
23 February 2011                            Page: 50 of 77


for inclusive growth and are home to many millions of poor people.

The public finance challenge is to balance investment in expanding

urban capacity while also providing key public services –

electricity, refuse removal and public transport, amongst others.



An efficient and cost-effective public transport system is crucial

because the majority of our people live too far from where work

opportunities are.



In addition, through better land use management, we need to deliver

integrated human settlements that break from the apartheid past.

[Applause.]



A start is made in this Budget, in the allocation of funds directly

to cities to upgrade informal settlements. Minister Sexwale will

implement the accreditation of municipalities that have demonstrated

their capacity to manage the low-income housing subsidy system. The

public transport function, including the management of rail, has

been delegated by Minister Ndebele to metropolitan municipalities in

terms of the National Land Transport Act.



These are steps that create direct responsibilities for city

councils, and open up opportunities for accelerating investment and

change in the urban landscape and how cities promote their local

economic development.
23 February 2011                            Page: 51 of 77

Conclusion



Mr Speaker, in conclusion, I extend my sincere appreciation to the

President and Deputy President for their unwavering support and wise

counsel. Keeping our country on a steady course through the Great

Recession, as it is now called, has been a challenging task for all

of us and the support of the Presidency has been both indispensable

and inspirational. Let us applaud them, please. [Applause.]



I would like to thank my Cabinet colleagues for their support. The

Budget is our collective statement. Your positive and encouraging

contributions have been most helpful. Thank you very much.

[Applause.]



The members of the Ministers’ Committee on the Budget have

shouldered an immense responsibility to restructure and reform our

fiscal system and make bold recommendations to Cabinet. Theirs has

been an excellent and enduring team effort. [Applause.]



Our thanks to my colleague, Deputy Minister Nene, who has offered

wise insights and shared many responsibilities. He forms an

invaluable part of a maturing Ministry. [Applause.]



Thanks also go to the MECs for finance, who play a vital role in

managing over 40% of our national Budget.
23 February 2011                          Page: 52 of 77


Our collective thanks go to:



    Governor Gill Marcus and the staff of the South African Reserve

    Bank for their marvellous co-operation and assistance;

    [Applause.]

    Commissioner Oupa Magashula and the South African Revenue

    Service. We hope they have produced the revenue we need by

    31 March. [Applause.]

    Jabu Moleketi, chair of the DBSA, and CEO Paul Baloyi, for

    their efforts; [Applause.]

    the Financial and Fiscal Commission and its acting chair

    Bongani Khumalo; [Applause.]

    Nedlac, its managing director, Herbert Mkhize, and

    representatives of the business, labour and community

    constituencies; [Applause.]

    the hon Thaba Mufamadi and hon Charel de Beer, who chair the

    Standing and Select Committees on Finance respectively and to

    the two chairs of the Appropriations committees, the hon Eliot

    Sogoni and hon Teboho Chaane, whose work starts now.

    [Applause.]

    the Director-General of the National Treasury, Lesetja Kganyago

    – who is now becoming a veteran – and the National Treasury

    team, who continue to surpass their own high standards and

    remain wonderful examples of loyal and professional public

    servants, and who are an invaluable asset to our democratic

    state; [Applause.]
23 February 2011                            Page: 53 of 77


    the staff of the Ministry, who make life easier for me; and

    to my family for their support and sacrifices so that I may

    serve our country.



Once again, my sincere appreciation to the wide range of South

Africans who continuously provide positive feedback and ideas on how

government could work better and differently.



Fellow South Africans, the President has stated very clearly that

job creation is our number one priority. This Budget outlines what

government’s capabilities and finances can do to support the

delivery of jobs. Now it is time for all of us to say “making South

Africa work begins with you and me”.



Giving every South African the dignity of a job, the security of an

income, the prospect of training, the support to launch new

businesses, the confidence to be an entrepreneur and the sheer

passion and optimism to break the shackles of unemployment, is the

best legacy this generation can leave for the next.



The world is full of opportunities. Ours is the task of transforming

these opportunities into real, tangible outcomes which all of our

people can experience and call their own.



I want to quote Mandisa Motha-Ngumla, who sent in a wise tip:
23 February 2011                           Page: 54 of 77


  Government must teach its people to fish, not be suppliers of

  fish. The latter is not sustainable The government pond will never

  be able to supply more fish in 20 years than it is doing now to

  the ever-growing masses of people of this country. Let’s work to

  reduce dependency and give back dignity that was eroded by our

  past.



[Applause.]



We repeat what we said last year: With jobs comes dignity; with

dignity comes participation; and from participation emerges

prosperity for all.



Mr Speaker, I have pleasure in tabling the Budget Review of 2011,

the Division of Revenue Bill, and the Appropriation Bill for this

House to consider.



Finally, let us be inspired by Madiba, who said:



  In judging our progress as individuals we tend to concentrate on

  external factors, such as one’s social position, influence and

  popularity, wealth and standard of education ... It is perfectly

  understandable if many people exert themselves mainly to achieve

  all these. But internal factors may be even more crucial ...

  honesty, sincerity, simplicity, humility, pure generosity, absence
23 February 2011                             Page: 55 of 77


  of vanity, readiness to serve others – qualities which are within

  easy reach of every soul.



Thank you. [Applause.]



The SPEAKER: Order! Hon members, distinguished guests, on your

behalf I wish to thank the hon Minister of Finance.



The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, hon President,

hon Deputy President, hon Minister of Finance, distinguished guests,

I move:



  That, notwithstanding the relevant provisions of the Rules on

  Money Bills, the fiscal framework, revenue proposals as well as

  the Minister of Finance’s speech be referred to the Standing

  Committee on Finance for consideration and report.



Agreed to.



The House adjourned at 15.25.

                                __________



             ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS



ANNOUNCEMENTS
23 February 2011                                                Page: 56 of 77


National Assembly and National Council of Provinces



The Speaker and the Chairperson



1.   Draft Bills submitted in terms of Joint Rule 159



     (1)   Division of Revenue Bill, 2011, submitted by the Minister of Finance. Referred to the

           Standing Committee on Appropriations and the Select Committee on Appropriations.



National Assembly



The Speaker



1.   Introduction of Bills



     (1) The Minister of Finance



           (a)   Appropriation Bill [B 3 – 2011] (National Assembly – proposed sec 77).



           (b)   Division of Revenue Bill [B 4 – 2011 (Reprint)] (National Assembly – proposed sec

                 76).



                 Introduction and referral to the Joint Tagging Mechanism (JTM) for classification in

                 terms of Joint Rule 160.
23 February 2011                                                 Page: 57 of 77


                 In terms of Joint Rule 154 written views on the classification of the Bills may be

                 submitted to the JTM within three parliamentary working days.



2.   Referral to Committees of papers tabled



     (1)   The following papers are referred to the Standing Committee on Finance:



           (a)     Government Notice No R1049, published in Government Gazette No 33750, dated

                   10 November 2010: Determination of fees payable to the Registrar of Financial

                   Services Providers in terms section 41(1) of the Financial Advisory and

                   Intermediary Services Act, 2002 (Act No 37 of 2002).



           (b)     Government Notice No R1069, published in Government Gazette No 33763, dated

                   19 November 2010: Amendment of Part 5A of Schedule No 1 (No 1/5A/149) in

                   terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



           (c)     Government Notice No R1070, published in Government Gazette No 33763, dated

                   19 November 2010: Amendment of Rules (DAR/77) under section 120 of the

                   Customs and Excise Act, 1964 (Act No 91 of 1964).



           (d)     Government Notice No R1071, published in Government Gazette No 33763, dated

                   19 November 2010: Amendment of Part 3D of Schedule No 1 (No 1/3D/11) in

                   terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
23 February 2011                                          Page: 58 of 77


       (e)   Government Notice No 1105, published in Government Gazette No 33781, dated

             26 November 2010: Amendment of Schedule 2 in terms of section 75 of the

             Financial Intelligence Centre Act, 2001 (Act No 38 of 2001).



       (f)   Government Notice No 1106, published in Government Gazette No 33781, dated

             26 November 2010: Commencement of the Financial Intelligence Centre

             Amendment Act, 2008 (Act No 11 of 2008), in terms of section 29 of the Act.



       (g)   Government Notice No 1107, published in Government Gazette No 33781, dated

             26 November 2010: Amendment of Money-Laundering and Terrorist-Financing

             Control Regulations in terms of section 77 of the Financial Intelligence Centre

             Act, 2001 (Act No 38 of 2001).



       (h)   Government Notice No R1119, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 1 (No 1/1/1418) in terms section

             48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (i)   Government Notice No R1120, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 1 (No 1/2A/152) in terms of

             section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (j)   Government Notice No R1121, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 1 (No 1/2B/153) in terms of

             section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
23 February 2011                                        Page: 59 of 77


       (k)   Government Notice No R1122, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 1 (No 1/3A/12) in terms of section

             48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (l)   Government Notice No R1123, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 1 (No 1/3B/13) in terms of section

             48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (m)   Government Notice No R1124, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 1 (No 1/5A/150) in terms of

             section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (n)   Government Notice No R1125, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 1 (No 1/5B/151) in terms of

             section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (o)   Government Notice No R1126, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Part 1 of Schedule No 2 (No 2/332) in terms of

             section 56 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (p)   Government Notice No R1127, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 3 (No 3/666), in terms of section

             75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
23 February 2011                                         Page: 60 of 77


       (q)   Government Notice No R1128, published in Government Gazette No 33817, dated

             1 December 2010: Amendment of Schedule No 6 (No 6/18), in terms of section

             75(15) of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (r)   Government Notice No R1131, published in Government Gazette No 33813, dated

             3 December 2010: Amendment of Rules (DAR/78) under sections 19 and 120 of

             the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (s)   Government Notice No R1145, published in Government Gazette No 33824, dated

             3 December 2010: Amendment of Schedule No 3 (No 3/667) in terms of section

             75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (t)   Government Notice No 1202, published in Government Gazette No 33859, dated

             17 December 2010: Exemption in terms of section 92 of the Public Finance

             Management Act, 1999 (Act No 1 of 1999).



       (u)   Government Notice No 1213, published in Government Gazette No 33881, dated

             17 December 2010: Variation of Policyholder Protection Rules (Short-term

             Insurance) 2004 in terms of section 55 of the Short-term Insurance Act, 1998 (Act

             No 53 of 1998).



       (v)   Government Notice No 1214, published in Government Gazette No 33881, dated

             17 December 2010: Variation of Policyholder Protection Rules (Long-term

             Insurance) 2004 in terms of section 62 of the Long-term Insurance Act, 1998 (Act

             No 52 of 1998).
23 February 2011                                           Page: 61 of 77


       (w)    Government Notice No R1225, published in Government Gazette No 33897, dated

              24 December 2010: Amendment of Schedule No 1 (No 1/1/1419) in terms of

              section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (x)    Government Notice No R1226, published in Government Gazette No 33897, dated

              24 December 2010: Amendment of Schedule No 4 (No 4/335) in terms of section

              75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (y)    Government Notice No R1227, published in Government Gazette No 33879, dated

              24 December 2010: Amendment of Rules (DAR/79) under sections 19 and 120 of

              the Customs and Excise Act, 1964 (Act No 91 of 1964).



       (z)    Government Notice No 1247, published in Government Gazette No 33900, dated

              31 December 2010: Technical changes of public entities in terms of sections 47

              and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999).



       (aa)   Government Notice No 1248, published in Government Gazette No 33900, dated

              31 December 2010: Listing of public entities in terms of sections 47 and 48 of the

              Public Finance Management Act, 1999 (Act No 1 of 1999).



       (bb)   Government Notice No 1249, published in Government Gazette No 33900, dated

              31 December 2010: Delisting of public entities in terms of sections 47 and 48 of

              the Public Finance Management Act, 1999 (Act No 1 of 1999).
23 February 2011                                            Page: 62 of 77


       (cc)   Government Notice No 1250, published in Government Gazette No 33900, dated

              31 December 2010: Technical changes of public entities in terms of sections 47

              and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999).



       (dd)   Government Notice No 1251, published in Government Gazette No 33900, dated

              31 December 2010: Technical changes of public entities in terms of sections 47

              and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999).



       (ee)   Government Notice No 1252, published in Government Gazette No 33900, dated

              31 December 2010: Delisting of public entities in terms of sections 47 and 48 of

              the Public Finance Management Act, 1999 (Act No 1 of 1999).



       (ff)   Government Notice No 1253, published in Government Gazette No 33900, dated

              31 December 2010: Delisting of public entities in terms of sections 47 and 48 of

              the Public Finance Management Act, 1999 (Act No 1 of 1999).



       (gg)   Government Notice No 1254, published in Government Gazette No 33900, dated

              31 December 2010: Listing of public entities in terms of sections 47 and 48 of the

              Public Finance Management Act, 1999 (Act No 1 of 1999).



       (hh)   Agreement between the Government of the Federal Republic of Germany and the

              Government of the Republic of South Africa concerning Financial Cooperation in

              2009, tabled in terms of section 231(3) of the Constitution, 1996.
23 February 2011                                           Page: 63 of 77


       (ii)   Explanatory Memorandum to the Agreement between the Government of the

              Federal Republic of Germany and the Government of the Republic of South Africa

              concerning Financial Cooperation in 2009.



       (jj)   Assistance Agreement between the United States of America and the Republic of

              South Africa for Tri-Lateral Assistance and Cooperation, Democratic

              Consolidation, Advanced Increased Sustainable Local Government Service

              Delivery, Increased use of HIV/Aids and other Primary Health Care Services,

              Increased Access to Quality Education and Training, Support Economic Growth,

              Regional Objective – Rural Livelihoods Diversified in Southern Africa (USAID

              Assistance Agreement No 674-2010-00), tabled in terms of section 231(3) of the

              Constitution, 1996.



       (kk)   Explanatory Memorandum to the Assistance Agreement between the United States

              of America and the Republic of South Africa on USAID Assistance Agreement No

              674-2010-00).



       (ll)   Financing Agreement between the European Community and the Government of

              South Africa concerning youth empowerment through culture and sport

              programmes, tabled in terms of section 231(3) of the Constitution, 1996.



       (mm)   Explanatory Memorandum to the Financing Agreement between the European

              Community and the Government of South Africa concerning youth empowerment

              through culture and sport programmes.
23 February 2011                                                 Page: 64 of 77


         (nn)       Specific Agreement between the Government of the Kingdom of Belgium and the

                    Government of the Republic of South Africa on a Belgian-South African Study

                    and Consultancy Fund, tabled in terms of section 231(3) of the Constitution, 1996.



         (oo)       Explanatory Memorandum to the Specific Agreement between the Government of

                    the Kingdom of Belgium and the Government of the Republic of South Africa on a

                    Belgian-South African Study and Consultancy Fund.



         (pp)       Government Notice No R8, published in Government Gazette No 33926, dated 14

                    January 2011: Amendment: Exchange Control Regulations under section 9 of the

                    Currency and Exchanges Act, 1933 (Act No 9 of 1933).



         (qq)       Government Notice No R9, published in Government Gazette No 33926, dated 14

                    January 2011: Amendment: Orders and Rules in terms of the Exchange Control

                    Regulations, 1961.



   (2)   The following papers are referred to the Standing Committee on Finance for

         consideration and report:



         (a) Government Notice No 1104, published in Government Gazette No 33781, dated 26

                November 2010: Amendment of Schedule 1 (List of accountable institutions), tabled in

                terms of section 73(3) of the Financial Intelligence Centre Act, 2001 (Act No 38 of

                2001).
23 February 2011                                              Page: 65 of 77


         (b) Report and Financial Statements on the Registrar of Friendly Societies for 2008

             [RP253-2008].



         (c) Report of the Registrar of Short-term Insurance for 2008 [RP269-2010].



         (d) Report of the Registrar of Long-term Insurance for 2008 [RP270- 2010].



   (3)   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 Overview of the

            Implementation of the Financial Disclosure Framework: Financial Year 2008-09 to

            June 2010 [RP171-2010].



   (4)   The following paper is referred to the Portfolio Committee on Human Settlements

         for consideration and to the Portfolio Committee on Public Service and

         Administration:

         (a) Report of the Public Service Commission (PSC) on the Consolidated Monitoring and

            Evaluation Report on the Departments of Housing (Human Settlements) Evaluation

            Cycle for 2009-10 to July 2010 [RP216-2010].



   (5)   The following papers are referred to the Portfolio Committee on Science and

         Technology for consideration and report:
23 February 2011                                                Page: 66 of 77


         (a) Southern African Development Community (SADC) Protocol on Science, Technology

            and Innovation, tabled in terms of section 231(2) of the Constitution, 1996.



         (b) Explanatory Memorandum to the Southern African Development Community (SADC)

            Protocol on Science, Technology and Innovation.



   (6)   The following papers are referred to the Portfolio Committee on Water and

         Environmental Affairs for consideration and report. The reports of the Independent

         Auditors on the Financial Statements and Performance Information are referred to the

         Committee on Public Accounts for consideration:



         (a) Report and Financial Statements of the Rand Water 2009-10, including the Report of

            the Independent Auditors on the Financial Statements and Performance Information for

            2009-10.



         (b) Sustainability Report of Rand Water for 2009-10.



         (c) Report and Financial Statements of Umgeni Water for 2009-10, including the Report of

            the Independent Auditors on the Financial Statements and Performance Information for

            2009-10.



         (d) Report and Financial Statements of Amatola Water for 2009-10, including the Report of

            the Independent Auditors on the Financial Statements and Performance Information for

            2009-10.
23 February 2011                                            Page: 67 of 77


       (e) Report and Financial Statements of Sedibeng Water for 2009-10, including the Report

          of the Independent Auditors on the Financial Statements and Performance Information

          for 2009-10.



       (f) Report and Financial Statements of Albany Coast Water Board for 2009-10, including

          the Report of the Independent Auditors on the Financial Statements and Performance

          Information for 2009-10.



       (g) Report and Financial Statements of Pelladrift Water Board for 2009-10, including the

          Report of the Independent Auditors on the Financial Statements and Performance

          Information for 2009-10.



       (h) Report and Financial Statements of Overberg Water for 2009-10, including the Report

          of the Independent Auditors on the Financial Statements and Performance Information

          for 2009-10.



       (i) Report and Financial Statements of Bloem Water for 2009-10, including the Report of

          the Independent Auditors on the Financial Statements and Performance Information for

          2009-10.



       (j) Report and Financial Statements of Mhlathuze Water for 2009-10, including the Report

           of the Independent Auditors on the Financial Statements and Performance Information

           for 2009-2010.
23 February 2011                                               Page: 68 of 77


         (k) Report and Financial Statements of the Bushbuckridge Water Board for 2009-10,

               including the Report of the Independent Auditors on the Financial Statements and

               Performance Information for 2009-2010.



         (l) Report and Financial Statements of the Lepelle Northern Water for 2009-10, including

               the Report of the Independent Auditors on the Financial Statements and Performance

               Information for 2009-10.



   (7)   The following papers are referred to the Portfolio Committee on Human

         Settlements for consideration:



         (a) Departmental Updated Strategic Plan of the Department of Human Settlements and

               Performance Plans for 2010–13.



         (b)     Letter from the Minister of Human Settlements, dated 11 January 2011, to the

                 Speaker of the National Assembly, explaining the delay in the submission of the

                 Annual Report of Thubelisha Homes for 2009-10.



   (8)   The following paper is referred to the Portfolio Committee on Social Development

         for consideration. The report of the Auditor-General on the Financial Statements and

         Performance Information is referred to the Committee on Public Accounts for

         consideration:
23 February 2011                                               Page: 69 of 77


         (a) Report and Financial Statements of the South African Social Security Agency (Sassa)

            for 2009-10, including the Report of the Auditor-General on the Financial Statements

            and Performance Information for 2009-10 [RP46-2010].



   (9)   The following paper is referred to the Portfolio Committee on Mineral Resources

         for consideration and report:



         (a) Report of the Mine Health and Safety Inspectorate for 2009-10.



   (10) The following papers are referred to the Portfolio Committee on Justice and

         Constitutional Development:



         (a) Proclamation No R76, published in Government Gazette No 33865, dated 9 December

             2010: Referral of matters to existing Special Investigating Unit and Special Tribunal in

             terms of section 2(1) of the Special Investigating Units and Special Tribunals Act ,

             1974 (Act No 74 of 1996).



         (b) Proclamation No R2, published in Government Gazette No 33697, dated 14 January

             2011: Referral of matters to existing Special Investigating Unit and Special Tribunal in

             terms of section 2(1) of the Special Investigating Units and Special Tribunals Act ,

             1974 (Act No 74 of 1996).



         (c) Proclamation No R3, published in Government Gazette No 33722, dated 14 January

             2011: Referral of matters to existing Special Investigating Unit and Special Tribunal in
23 February 2011                                              Page: 70 of 77


            terms of section 2(1) of the Special Investigating Units and Special Tribunals Act ,

            1974 (Act No 74 of 1996).



   (11) The following papers are referred to the Portfolio Committee on Trade and

        Industry:



        (a) Bilateral Agreement between the Government of the Republic of South Africa and the

           Government of the Syrian Arab Republic, tabled in terms of section 231(3) of the

           Constitution, 1996.



        (b) Explanatory Memorandum to the Bilateral Agreement between the Government of the

           Republic of South Africa and the Government of the Syrian Arab Republic.



        (c) Government Notice No 1059, published in Government Gazette No 33760, dated 12

           November 2010: Proclamation of the effective date for the National Gambling

           Exclusions Database in terms of section 87 of the National Gambling Act, 2004 (Act

           No 7 of 2004).



        (d) Government Notice No R1072, published in Government Gazette No 33763, dated 19

           November 2010: Amendment of Compulsory Specification for Manually Operated

           Switches for Appliances (VC 8052) in terms section 13(1)(a) of the National Regulator

           for Compulsory Specifications Act, 2008 (Act No 5 of 2008).



        (e) Government Notice No R1073, published in Government Gazette No 33763, dated 19

           November 2010: Compulsory Specification for Motor Vehicles of Category N1 in
23 February 2011                                           Page: 71 of 77


          terms of section 13(1)(a) the National Regulator for Compulsory Specifications Act,

          2008 (Act No 5 of 2008).



       (f) Government Notice No R1074, published in Government Gazette No 33763, dated 19

          November 2010: Proposed amendment of Compulsory Specification for Cord Sets and

          Cord Extension Sets (VC 8029) in terms of section 13(4) of the National Regulator for

          Compulsory Specifications Act, 2008 (Act No 5 of 2008).



       (g) Government Notice No R1075, published in Government Gazette No 33763, dated 19

          November 2010: Amendment of Compulsory Specifications for Plugs, Socket-outlets

          and Socket-outlet Adaptors (VC 8008) in terms of section 13(1)(a) of the National

          Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).



       (h) Government Notice No R1076, published in Government Gazette No 33763, dated 19

          November 2010: Compulsory Specification for the Safety of Starters for Tubular

          Fluorescent Lamps (VC 8039) in terms of section 13(1)(a) of the National Regulator for

          Compulsory Specifications Act, 2008 (Act No 5 of 2008).



       (i) Government Notice No R1077, published in Government Gazette No 33763, dated 19

          November 2010: Compulsory Specification for Appliance Couplers (VC 8012) in terms

          of section 13(1)(a) of the National Regulator for Compulsory Specifications Act, 2008

          (Act No 5 of 2008).



       (j) Government Notice No R1078, published in Government Gazette No 33763, dated 19

          November 2010: Proposed introduction of a new Compulsory Specification for
23 February 2011                                            Page: 72 of 77


          Personal Protective Equipment-Safety Footwear (VC 9002) in terms of section 13(4) of

          the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).



       (k) Government Notice No R1079, published in Government Gazette No 33763, dated 19

          November 2010: Amendment of Compulsory Specification for the Safety of Flexible

          Cords for Electrical Appliances (VC 8006) in terms of section 13(1)(a) of the National

          Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).



       (l) Government Notice No R1080, published in Government Gazette No 33763, dated 19

          November 2010: Compulsory Specification for Motor Vehicles of Category M1 in

          terms of section 13(1)(a) of the National Regulator for Compulsory Specifications Act,

          2008 (Act No 5 of 2008).



       (m) Government Notice No 1099, published in Government Gazette No 33818, dated 29

          November 2010: Proposed consumer protection regulations, published for public

          comment in terms of section 120(2)(a) of the Consumer Protection Act, 2008 (Act No

          68 of 2008).



       (n) Government Notice No 1078, published in Government Gazette No 33789, dated 23

          November 2010: Draft amendments to the National Gambling Regulations of 2004,

          published for written comment in terms of section 87 of the National Gambling Act,

          2004 (Act No 7 of 2004).
23 February 2011                                           Page: 73 of 77


       (o) Government Notice No 1171, published in Government Gazette No 33848, dated 6

          December 2010: Members appointed to the Securities Regulation Panel in terms of

          section 440B(6) of the Companies Act, 1973 (Act No 61 of 1973).



       (p) Government Notice No 1106, published in Government Gazette No 33857, dated 10

          December 2010: Phase 1 of the Draft Financial Sector Charter of the Codes of Good

          Practice, published for comment in terms of section 9(5) of the Broad-Based Black

          Economic Empowerment Act, 2003 (No 53 of 2003).



       (q) Government Notice No R1228, published in Government Gazette No 33897, dated 24

          December 2010: Correction Notice: Compulsory Specification for Replacement

          Brake-Lining Assemblies for Road Vehicles in terms of section 13(1)(A) of the

          National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).



       (r) Government Notice No R1229, published in Government Gazette No 33897, dated 24

          December 2010: Amendment: Compulsory Specifications for Compact Fluorescent

          Lamps (CFLs) (VC9091) in terms of section 13(2)(c) of the National Regulator for

          Compulsory Specifications Act, 2008 (Act No 5 of 2008).



       (s) Government Notice No R1230, published in Government Gazette No 33897, dated 24

          December 2010: Notice of intention to amend regulations in terms of section 42 of the

          Trade Metrology Act, 1973 (Act No 77 of 1973).

       (t) Government Notice No 1259, published in Government Gazette No 33900, dated 31

          December 2010: Notice by the Competition Commission of the rejection of an
23 February 2011                                             Page: 74 of 77


           application for exemption by Grain South Africa in terms of section 10(7) of the

           Competition Act, 1998 (Act No 89 of 1998).



   (12) The following papers are referred to the Standing Committee on Finance for

        consideration and report:



        (a) Protocol between the Government of the Republic of South Africa and the Government

           of the United Kingdom of Great Britain and Northern Ireland to Amend the Convention

           for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with

           respect to Taxes on Income and on Capital Gains, tabled in terms of section 231(2) of

           the Constitution, 1996.



        (b) Explanatory Memorandum to the Protocol Amending the Double Taxation Convention

           between the Government of the Republic of South Africa and the Government of the

           United Kingdom of Great Britain and Northern Ireland.



        (c) Agreement between the Government of the Republic of South Africa and the

           Government of the Republic of Kenya for the Avoidance of Double Taxation and the

           Prevention of Fiscal Evasion with respect to Taxes on Income, tabled in terms of

           section 231(2) of the Constitution, 1996.



        (d) Explanatory Memorandum to the Double Taxation Agreement between the Government

           of the Republic of South Africa and the Republic of Kenya.
23 February 2011                                              Page: 75 of 77


   (13) The following papers are referred to the Portfolio Committee on Justice and

        Constitutional Development for consideration and report:



        (a) Convention on Cybercrime, tabled in terms of section 231(2) of the Constitution, 1996.



        (b) Additional Protocol to the Convention on Cybercrime, concerning the Criminalisation

           of Acts of a Racist and Xenophobic Nature committed through Computer Systems,

           tabled in terms of section 231(2) of the Constitution, 1996.



        (c) Explanatory Memorandum to the Convention on Cybercrime and the Additional

           Protocol to the Convention on Cybercrime, concerning the Criminalisation of Acts of a

           Racist and Xenophobic Nature committed through Computer Systems.



   (14) The following paper is referred to the Standing Committee on Finance for consideration

        and to the Portfolio Committee on Cooperative Governance and Traditional Affairs:



        (a) Municipal Budgets for the 2010 Medium-Term Revenue and Expenditure Framework

           (MTREF) in terms of section 16 of the Local Government: Municipal Finance

           Management Act, 2003 (Act No 56 of 2003).



        (b) Report to Parliament on the over- and underspending of municipalities as at

           30 June 2010 – November 2010.



   (15) The following paper is referred to the Committee on Public Accounts for consideration:
23 February 2011                                                    Page: 76 of 77


          (a) General Report of the Auditor-General on the National Audit Outcomes for 2009-10

                [RP1-2011].



     (16) The following paper is referred to the Committee on Public Accounts for consideration

          and to the Portfolio Committee on Cooperative Governance and Traditional Affairs:



          (a) Consolidated General Report of the Auditor-General on the Provincial Audit Outcomes

                for 2009-10 [RP2-2011].



TABLINGS



National Assembly and National Council of Provinces



1.   The Minister of Finance



     (a) The Speech of the Minister of Finance on the National Annual Budget – 23 February 2011

            [RP6-2011].



     (b) The Budget Review 2011 [RP5-2011], including –

                 the fiscal framework;

                 revenue proposals for 2011, inclusive of the customs and excise duties;

                 the estimates of national revenue for 2011; and

                 responses to recommendations in reports referred to in sections 5(2), 6(7) and 6(12)

                  of the Money Bills Amendment Procedure and Related Matters Act, 2009 (No 9 of

                  2009).
23 February 2011                                              Page: 77 of 77


   (c) Division of Revenue Bill [B 4 – 2011 (Reprint)], tabled in terms of section 10(1) of the

          Intergovernmental Fiscal Relations Act, 1997 (Act No 97 of 1997).



   (d) Appropriation Bill [B 3 - 2011].



   (e)   National Treasury Policy Document: A Safer Financial Sector to Serve South Africa Better,

          2011.



   (f)    Tax Statistics, 2010.



          The fiscal framework and revenue proposals, as well as the speech of the Minister of

          Finance, are referred to the Standing Committee on Finance for consideration and

          report.

								
To top