Hon Chair, Ministers, Deputy Ministers and Members of Parliament, I don't think we will respond to Mr Harris because he is not a member of our committee. [Interjections.] A member of our committee has spoken and conveyed the views of all of us.
The ANC vision for the future is abundantly clear. We want a country where millions and more South Africans have decent employment opportunities, with modern infrastructure and a vibrant economy, where the quality of life is both sustainable and equitable.
This division of revenue presents a significant change from the 2012 division of revenue. We take note of the fact that the National Treasury has seriously considered the committee's recommendations where we had members of the DA in 2012 as part of our oversight. The tightening up on how respective grants in the provinces are applied for and spent is welcome.
The ANC principle of centralised planning is reflected in the fact that government's Medium-Term Expenditure Framework reflects the realignment of activities of departments to the National Development Plan, NDP, in which we believe. The economic freedom the ANC speaks of, and which the 2013 division of revenue seeks to achieve, is underpinned by the drive towards dealing effectively with the triple challenge of poverty, unemployment and inequality. Research published by the Development Policy Research Unit confirms that significant progress has been made in the delivery of housing, water, sanitation and many other basic services. Here, I will talk about what has been achieved and what anybody can see in line with the division of revenue.
With regard to health, the ANC's guiding policy framework, the Freedom Charter, states that a preventative health scheme shall be run by the state, where the aged, orphans, disabled and the sick shall be cared for.
The ANC-led government has made great progress in addressing the needs of the citizens and acknowledged that a lot still has to be done. The promise made to the people of South Africa can be seen in the transformation that the Department of Health has brought. We all know that the department has achieved many changes, namely an overall improved life expectancy; HIV/Aids campaigns that have gained momentum, with more people having been tested and those who tested positive being on ARV treatment; reduction in mother- to-child HIV transmission - the prices for medicine were negotiated and reduced and a lot of money has been saved; and the department having finalised the health facilities audit in all the provinces. The list goes on. Underspending of conditional grants, as it has been with all the members of the committee, has been our great concern. The big question was: How can money allocated for a specific purpose on infrastructure not be spent on it? As a result, the ANC-led government and the National Treasury came up with the solution that the three conditional grants must be merged. These are the hospital revitalisation grant, which has R10,7 billion; the health infrastructure grant, which has R3,8 billion; and the nursing college and school grant, which has R269 million. This allows flexibility to move funds from poorly performing projects to performing projects within the province.
Business plans should be submitted to the Department of Health two years in advance and incentives must be given where the provinces have proven capacity. Building blocks have been put in place since 2009 in readiness for the implementation of the National Health Insurance, NHI. Hospital revitalisation and the building of new hospitals are taking place to make public hospitals places of choice and of universal coverage. Unlike private hospitals, which remain extremely costly and do not allow for universal coverage, the NHI has a foundation and everybody knows where it is going.
The health infrastructure grant demonstrates the extensive capital expenditure in the Bill and it is linked to the requirements of the NHI. There are 10 district pilot sites that have been identified, and practitioners who will be contracted to the clinics. Primary health care centres have been strengthened and schools have also been put in place so that more clinics can start there in order that a link may be established to assist with determining who should go to the clinic for consultation. That is a great improvement, part of the vision of the ANC.
Regarding social development the social grant allocation is R113 billion for the 2013-14 financial year and will be increased to R129 billion in the 2015-16 financial year, reaching 17,2 million beneficiaries. The grants are implemented and administered by a separate national government agency, known as the South African Social Security Agency, Sassa.
The main objectives are to alleviate poverty and improve the socioeconomic status of vulnerable persons and families as it addresses health, education and the income of the poorest of the poor. There are several other interventions by the government which address the plight of the poor, most of whom are found in the informal settlements, where they are plagued by social factors resulting in a lot of social ills.
The Budget also provides for additional funding to provincial welfare services in the medium term, including the absorption of social work graduates, nongovernmental organisations which are facing a decline in donor funding, social sector support that is lent by the Expanded Public Works Programmes, EPWPs, where we find early childhood development, ECD, training and community-based care workers, who are funded through those EPWPs.
Sassa's separate administration enables social workers to concentrate on their core functions. The social fabric of families and communities is disintegrating. We are faced with the scourge of social abuse and sexual assault of children. Social work and community development skills and professional interventions are needed to address these increasing scourges.
Infrastructure grant allocations are given to education to address both basic and higher education. This proves that the ANC will not rest until every child is educated and every citizen has received tertiary education which is linked to the economic skills of the country.
Close monitoring of the performance of the above-mentioned grants by Parliament is crucial. Parliament exercises oversight over departments and it is the Members of Parliament who, as public representatives, should demand value for money, as it is public funds that are used for infrastructure projects.
Weak capacity and integration and poor co-ordination of projects reduce the impact of infrastructure. The Presidential Infrastructure Co-ordinating Commission, PICC, has identified these infrastructure gaps. Eighteen strategic integrated projects were developed to support economic development and address service delivery in the poorest communities. Through infrastructure and industrialisation, jobs will be created as outlined in the New Growth Path. This lays the foundation for higher growth ... [Interjections.]