Chairperson, the Minister has a difficult job indeed. Whilst government is increasing the social security net indefinitely, and departments and state-owned enterprises, SOEs, are spending money like there is no tomorrow, you have to find more money to spend.
Whilst government's plans to create a growing economy and more jobs are not making real inroads in relation to the winds of entropy and decay, you have to find more fuel to keep the engines going. Whilst we are increasingly facing a state addicted to corruption, nepotism and name-dropping to get rich quick at the expense of the poor and the middle class, you have to stem the tide and the wind blowing good corporate governance into oblivion. It is indeed a difficult job you have, Minister - even more so morally, as you are financing state programmes with other people's money. The money that this government is using, abusing, and allowing to disappear into individuals' pockets is not the government's money. It belongs to the taxpayers and the people of this country in general; and it doesn't seem like you get that message.
Die belastingbetaler het 'n reg dat belastinggeld rasioneel, sinvol en moreel korrek aangewend word. Die algemene bevolking het die reg dat belasting aangewend word vir die goeie, sodat werk geskep kan word. Dit, weet ons, gebeur egter nie na behore nie. (Translation of Afrikaans paragraph follows.)
[The taxpayer has the right to see revenue being appropriated in a rational, sensible and moral manner. The general population has the right to see revenue appropriated for the good, so that employment may be created. We know, however, that this is not really happening.]
You get some things right, but most of the other things not.
Ons gee erkenning aan die Minister vir wat u regkry en vir u harde werk, veral om staatsaankope te polisieer. Minister, laat ek verduidelik hoe ons belasting verder gemors word. U is nou nie direk aanspreeklik vir hierdie probleme nie, maar u beheer die beursie. Daarom het u wel invloed om van die probleme aan te pak. (Translation of Afrikaans paragraph follows.)
[We give credit to the Minister for what you are getting right, and your hard work, especially in policing state purchases. Minister, let me explain how our revenue is being wasted further. You may not be directly accountable for these problems, but you are holding the purse strings. That is why you do have some influence on addressing some of these problems.]
You have influence over the problems, as you control the purse.
Ons belasting word eerstens aangewend om te betaal vir duur militre avonture in Afrika wat nie op menseregte nie, maar op duistere agendas gebaseer is. Tweedens, rasgebaseerde arbeids- en besigheidsmaatrels hou die ekonomie terug en skep nuwe slagoffers. (Translation of Afrikaans paragraph follows.)
[Our revenue is, firstly, employed to pay for expensive military adventures in Africa that are based not on human rights, but on murky agendas. Secondly, racially based labour and business measures are holding back the economy and creating new victims.] Let me further repeat some of the problems I mentioned in last year's debate. A lack of service delivery, as mentioned before, at local government level is increasingly leading to service protests. The Auditor- General has indicated that the central reason for this is the lack of skilled people in local government due to cadre deployment. Wasteful and fruitless expenditure of tax money in all departments continues. Inadequate job-creation strategies and a static tax base is a problem. Most jobs are created by the state and not by private enterprise. There is inadequate policing of crime, corruption and so forth.
Ons wil die Minister graag aanraai om ernstig met sy medeministers hieroor te praat. Indien die effektiewe aanwending van belasting nie daartoe lei dat die ekonomie begin groei nie, gaan ons ekonomie al hoe meer soos 'n piramide-skema begin funksioneer, en dit het waarskynlik al begin. (Translation of Afrikaans paragraph follows.)
[We would like to advise the Minister to have serious discussions with his fellow Ministers in this regard. If the effective appropriation of revenue does not lead to growth in the economy, our economy will start to function more and more like a pyramid scheme, and this has probably already started.]
So, let's not become another Greek tragedy. I thank you.
Chairperson, firstly the ACDP wishes to commend the Minister, National Treasury and Sars on their exceptional work in managing the state finances. The Budget earlier this year was very broadly well received, and we, as opposition parties, sent a very positive message out on that, hon Minister, something which is very important.
The main thrust of this Budget Vote is about galvanising society behind a national effort to place the country on an investment-led growth path. This the ACDP clearly supports. We understand the need to stimulate economic growth in the short term to create more sustainable jobs. It is imperative, however, that if government wants real economic growth, it must create the environment to make South Africa more competitive, efficient and productive.
The National Development Plan, NDP, which all opposition parties support together with the majority party, proposes a social compact to reduce poverty and inequality and raise employment and investment. Many of us referred to sentiment before. It is all about investor sentiment. This National Development Plan is a significant positive step, and its alignment with the budget process is also positive. We have also seen very positive capital inflows into the country, and we need to bear that in mind.
When one speaks about the social compact, of great concern to us is the tremendous and significant weakening of the rand that we have seen today. The volatility of our currency - it is now at R9,51 - to what has that been attributed? It has been attributed to trade union brinkmanship.
We see the National Union of Mineworkers, NUM, has demanded a 60% wage increase in the mining industry. This is clearly an attempt to bolster dwindling membership numbers, which have been lost to their rival, the Association of Mineworkers and Construction Union, Amcu. It is important to bear in mind what the International Labour Organisation's South African director, Vic van Vuuren, said. He warned that forcing employers into steep and unaffordable wage settlements will not only curb the growth of companies but could also mean job losses that the economy does not need and cannot afford. This warning should be heeded, as we already see what is happening in the platinum sector, with 6 000 jobs set to be lost at Anglo American Platinum, Amplats.
We, as the ACDP, share the sentiments expressed by the Minister, where we appeal to all parties in the spirit of a social compact to reach agreements that will strike the correct balance between what meets the expectations of employees and what companies can afford. The country cannot afford damaging industrial action, whether legal, particularly the violent wildcat strikes that we saw last year, leading to the Marikana tragedy. Minister, we agree with you. We need concerted action; there is no room for complacency.
Balanced, fair, socially responsible choices must be made in the interest of the country as a whole. We are in this together. We will sink or swim together. Let us choose to swim together. The ACDP will support this Budget Vote. I thank you. [Applause.]
Chairperson, it is an honour to participate in a session chaired by one of our women struggle icons. I feel very humbled. Hon Ministers, hon Deputy Ministers, my colleagues Members of Parliament, distinguished guests, the National Treasury team, we agreed as the ANC collective that the SA Revenue Service, Sars, as an organ of state has a mandate to contribute directly to the economic and social development of the country in order for government to meet its priorities. Cognisant of that fact, our ANC-led government through the National Development Plan, NDP, 2030 vision adopted a New Economic Growth Path to drive the economy. In order to achieve the noble objective of the NDP, Sars is expected to continue to effectively collect the revenue required by the government to meet its fiscal and policy responsibilities, as well as continue to facilitate legitimate trade in order to grow the country's economy.
In addition, Sars is expected to promote effective government, strong leadership and active citizenry by, among other things, continuing to improve service and raising compliance; continuing to partner with government units to improve the state's overall effectiveness and efficiency; engaging with other players in tax and customs administration, regionally and internationally; reducing the cost of compliance and the cost of doing business in South Africa; raising the competitiveness and export earnings of the country through the efficient and effective facilitation of legitimate trade; ensuring that Sars is corruption free and assisting in anticorruption measures across government, particularly in procurement processes; and drawing all citizens and entities into a relationship with Sars.
It is crucial to note that this Budget Vote is set in the context of continuing global financial stability concerns. Developments in the global tax environment have implications in the manner in which Sars collects the revenue required to meet government's fiscal responsibilities. The current global economic environment, which, inter alia, is characterised by slow growth, has produced significant shocks worldwide that have led to drastic changes in tax revenue performances and large swings in government deficits and debts. As a country, South Africa has not been immune to the impact of this unfortunate environment.
To compound matters, sophisticated tax avoidance and evasion schemes that lead to the erosion of the tax base of countries and possibly causing major risks to the country's fiscus proliferate. A recent report, by the Organisation for Economic Co-operation and Development, OECD, on addressing base erosion and profit shifting established that greedy and callous multinational corporations continue to use sophisticated schemes like intragroup transactions, transfer pricing manipulation and hybrid mismatches to exploit loopholes in local tax codes, double taxation agreements and tax treaties to avoid or significantly minimise their tax obligations in countries where they operate and make profits.
The recent agreement by the Group of 20, of which South Africa is a member, to adopt the proposals of the OECD report to counter these abusive schemes is welcomed by the ANC as a step in the right direction.
This Budget Vote, inter alia, undertakes to conduct research on large companies' deductions and benchmark findings against industries' norms to establish gaps in order to strengthen risk profiling. This will go a long way towards enhancing compliance by large businesses.
Increased Sars involvement in international exchange of information programmes through continued engagements with other countries' tax authorities will improve Sars' ability to trace the flow of funds, and also ensure that Sars is familiarised with these ever changing schemes and develop the skills and collaborations needed to combat the erosion of the South African tax base. Subsequently, everyone who has the use of our beloved country's public resources will pay their fair share in taxes.
We are comforted by the fact that in order to strengthen external relationships in the customs environment in the region, Sars has resolved to place more focus on regional information exchange which seeks to reinforce customs' ability to expedite regional trade. This will be enhanced further by electronically interconnected systems and aligned customs databases. In order to minimise the administrative burden in customs for travellers, this Budget Vote confirms that Sars will be implementing the Passenger Processing System, PPS. The PPS will ensure that the traveller's experience when entering or leaving our country is improved to the best ever. Also, easier security and data exchange between the different border agencies will be realised. It is hoped that through these initiatives the long queues that our border posts are experiencing will be something of the past.
The Budget Vote further confirms that Sars will be deploying a batch of cargo, container and baggage scanners at selected ports. This will ensure that Sars' risk management capabilities in customs are strengthened. The proliferation of illicit cigarettes is a major concern to our committee. As a country, we are currently experiencing significant losses in excess revenue. It is estimated that there is an annual loss of between R4,5 billion and R6 billion to the fiscus due to the smuggling and consumption of contraband cigarettes. The earmarked increased supervision of cigarettes exported via warehouses and targeted communications campaigns with industry and consumers is highly welcomed. This will empower our smokers to differentiate between "makoya" [authentic] and fake - "fong kong" - products, but also to understand the risks illicit cigarettes pose to their health and the economy.
Let us take our cue from the words of wisdom by our living legend Tata Mandela when he said, and I quote:
Our youth is our future. Whether our country will rise from the ashes of apartheid to become one of the world's success stories will to a large extent depend on what we invest in educating and training our youth.
This Budget Vote confirms that Sars will implement the youth employment incentive scheme. [Applause.] Unlike some who want everyone to believe that this is the only effort by our government to address the unemployment challenge, this scheme is one amongst a plethora of initiatives meant to deal with youth unemployment.
This initiative attempts to give effect to government and private sector commitment to the spirit and the letter of the Youth Employment Accord, as signed by government representatives and social partners, including those who all of a sudden are hell-bent to peddle blue lies at any given opportunity about the accord.
It seems as if a certain Mr Gana Makashule, who was sent to represent and sign on behalf of the blue liars, failed to report back on the outcome of a meeting where this accord was signed. Anyway, out of the ubuntu values, that are in abundance and are exhibited by the ANC members, allow me to reiterate some of the key interventions meant for youth employment. Those are to improve education and training opportunities for the gap grouping between school-leaving and first employment; to connect young people with employment opportunities through, amongst others, the support for job placement schemes and work readiness promotion programmes for young school- leavers; and to provide young people with work experience. By the way, youth entrepreneurship and co-operatives are also encouraged. [Interjections.]
I must indicate that no amount of howling will sway us from implementing an agreement. Howling is mere opportunism, political expediency and seeking to appropriate what the ANC-led government has initiated.
As indicated by the Minister, South Africa needs leaders who can serve as good ambassadors, not howlers or opportunists whose arguments lack content and substance. South Africa needs leaders with content.
Sifuna abaholi abakhuluma into enomqondo. [We want leaders who will make sense when they speak.]
The Budget Vote further confirms that Sars will continue to make improvements to its administrative systems and processes in order to reduce the administrative burden on taxpayers and traders. This will, inter alia, be realised by the rationalisation of corporate income tax return forms so as to minimise the administrative burden on the taxpayer.
As the ANC, we are satisfied that this Budget Vote will ensure delivery of cost-efficient, rapid and reliable service to all taxpayers and traders, hence our unconditional support. Thank you. [Applause.]
Chairperson, hon Minister, South Africa is currently underperforming economically, both in terms of our peers in sub-Saharan Africa and in terms of what is required to grow the number of jobs that our people so desperately need. We simply cannot be satisfied with South Africa's current level of economic growth and we have to implement bold policy initiatives that will make a real difference to our future growth prospects.
We believe it is unacceptable that the level of infrastructure investment is still only at 7% of our GDP, when we expect it to be more than 10%, given the 15 years of massive underinvestment that has plagued this sector.
We are seeing the impact of this underinvestment throughout our country, from failing water treatment plants to decrepit electricity distribution grids. We realise that government can clearly not do this alone. We must create an appropriate institutional environment that will bring the capital and the expertise of the private sector into this arena. Building public- private partnerships has proved to be highly effective in the Western Cape, where the provincial government launched the Western Cape Economic Development Partnership, EDP, last year. By March of this year, the EDP had the support and input from 134 organisations and partners across six sectors of the regional economy, proving that the private sector is ready and willing to join hands with government to solve our problems.
We would also like to know when Treasury will finalise the financial model for the SA Renewables Initiative, as it is embarrassing that we are still unable to access the billions that progressive European countries have made available to support our renewable energy ambitions. We also urge Treasury to conduct a thorough economic feasibility study into the proposed nuclear build programme as it could impose long-term costs that our economy will simply not be able to endure.
It seems that in the absence of bold policy initiatives, all this government can produce are a whole host of hopeless accords. Minister, I am sure you are aware that an accord will not magically resolve the discord that resides amongst our youth, given their shockingly high levels of unemployment. They need real solutions and not consensus-seeking statements that deliver nothing tangible.
I fail to see why after four years of stalling on the implementation of the youth wage subsidy, there is now the absurd statement that a policy initiative will only be implemented once there is consensus amongst all constituents as per the Youth Employment Accord.
Minister, we support your youth employment tax incentive, announced in your budget, but we will only believe it when we actually see it implemented. This Youth Employment Accord merely highlights the fundamental discord that resides in the heart of this government. It is time to stand up to vested interests and to ensure that the 4,7 million unemployed youth of this country are given the respect that they deserve in terms of real policy solutions that will address their plight.
Let us finally end the back and forth on this issue and implement the youth wage subsidy now. I thank you. [Interjections.] [Applause.]
Hon Chairperson, hon Minister Gordhan, hon Deputy Minister Nene, hon members, ladies and gentlemen, comrades, in global terms, South Africa's international financial policy must be shaped by the interplay between diplomatic, political, environmental, economic and regional co- operative dynamics that define early 21st century international relations.
South Africa's foreign policy is therefore driven by a clear and critical understanding of our national, regional and continental priorities in a multipolar world where the geostrategic politics of the African continent are, once again, becoming increasingly central to global political economic competition for natural resources and market share.
In order for South Africa to achieve its national goals of eradicating poverty, lowering inequality and creating employment opportunities, foreign financial relations must be driven by our domestic, economic and social demands, as well as our regional, continental and global obligations.
This goal is driven by the Treasury's programme for international financial relations. Work in the programme is given effect by the international and regional economic policy divisions which facilitate the deepening of South Africa's role in regional and international economic integration.
The strategic objectives are: to advance South Africa's interests specifically, and those of Africa more generally; to actively promote South Africa's financial and economic relations in bilateral and multilateral forums; to formalise the process in which South Africa disseminates knowledge on regional, financial and economic development; and to participate in bilateral and multilateral forums.
Die Komitee van Tien Afrika-ministers van Finansies en die Presidente van die Sentrale Banke ontmoet gereeld met die hoofde van die Ontwikkelingsbank van Suider-Afrika, die Kommissie van die Afrika-unie en die Verenigde Nasies se Ekonomiese Kommissie vir Afrika, waar onderwerpe soos onder meer die G20-agenda, voorkeursake vir Afrika, die rol van finansile regulasies en Afrika se stem en verteenwoordiging in internasionale finansile instellings bespreek word.
Die doel van die samekomste is om druk uit te oefen vir groter deelname en inspraak vir Suid-Afrika en Afrika-lande, asook beduidende hervorming van die Bretton Woods-instellings en prosesse. Dit verseker dat die stem van Afrika in die forums vir internasionale ekonomiese beleidformulering gehoor word.
Uitkomste in hierdie verband sluit in onderling ooreengekome response wat by die G20 ingevoer word, asook die ontwikkeling van toekomstige werkprogramme en geleenthede om Afrika se sienswyses oor te dra. (Translation of Afrikaans paragraphs follows.)
[The Committee of Ten African Ministers of Finance and Central Bank Governors meet regularly with the heads of the African Development Bank, the Commission of the African Union and the United Nations' Economic Commission for Africa where, amongst other topics, like the G20 agenda, matters of priority concerning Africa, the role of financial regulations and Africa's voice and representation within international institutions are discussed.
The aim of these meetings is to pressurise for greater participation and say for South Africa and African countries, as well as substantial reforms with regard to the Bretton Woods institutions and processes. This ensures that the voice of Africa is heard in the forums for international economic policy formulation.
In this regard, results include mutually agreed responses which are incorporated by the G20, as well as the development of future work programmes and opportunities to convey African's points of view.]
After the barriers to investment came down with the advent of democracy in South Africa, businesses moved quickly, with encouragement from the ANC-led government, to take advantage of the market opportunities on the continent. The stock of South African direct investment in the rest of Africa equals approximately 5% of our GDP, with a broad cross-section of the corporate community involved. South African banks appear to be well positioned to take advantage of expanding financial services throughout Africa.
In this regard, it is pleasing to note that South African financial institutions continue to consolidate their role as catalysts of financial development and regional integration within the SADC, and the continent at large. The strategic emphasis on regional financial development in Africa presents South Africa with a challenge to redouble our efforts.
It is therefore not surprising that the Treasury's programme for international financial relations also leads the reform of the governance and administration structures of African institutions which enhances South Africa's shareholding and influence at the African Development Bank, working towards ensuring effective financial administration of the SADC Financial Committee's Secretariat, and contributing towards the review of the SADC's Regional Indicative Strategic Development Plan.
On the international scene, the International Monetary Fund, IMF, is committed to working together with South Africa to provide the advice and analysis that can address and unleash our own and the continent's full economic capabilities. As a member of the G20, and being one of the largest economies in sub-Saharan Africa, South Africa has a clear role to play in ensuring global economic stability and contributing to sustained and balanced economic growth. The mobilisation of support for the African agenda is a key priority of South Africa's international financial relations.
South Africa's accession to the increasingly influential Brics formation, therefore, offers enormous opportunities, not only for the country, but also for our friends and neighbours on the continent. Financial co- operation mechanisms established within the Brics structure further enhance the potential to mobilise resources for development and regional integration within the SADC.
Nader aan ons tuisfront bevorder die Tesourie se Eenheid vir Internasionale Finansile Betrekkinge integrasie en versterk die Tesourie bande binne die substreek deur die skepping van 'n klimaat wat dien as die onderbou vir ekonomiese aktiwiteite met die lidlande van die Suider-Afrikaanse Doeane- unie. Onderhandeling is aan die gang ten opsigte van 'n nuwe inkomsteverdelingsooreenkoms vir die Doeane-unie wat bestaan uit Botswana, Lesotho, Namibi, Swaziland en Suid-Afrika. Die eenheid speel 'n leidende rol tydens die onderhandeling betreffende Suid-Afrika se voorstelle ten opsigte van die hersiening van die ooreenkoms deur die Doeane-unie. Die eenheid word ook deur die Departement van Handel en Nywerheid bygestaan tydens multilaterale onderhandeling wat gerig is op die implementering van die Doeane-unie se finansies en beleggingsprotokol. Die eenheid gaan ook Suid-Afrika se moontlike lidmaatskap van die Afrika-uitvoer-invoerbank en die Afrika-herversekeringskorporasie ondersoek.
Die ontwikkeling en vooruitgang van Afrika bly die sentrale doelstelling van die ANC se perspektiewe en beleidsrigtings vir die bevordering van die Afrika-renaissance en die transformasie van die instellings wat vir globale finansile bestuur verantwoordelik is.
In hierdie verband het president Jacob Zuma die afgevaardigdes van 60 lande tydens die openingsessie van die 21ste Wreld- Ekonomiese Forum oor Afrika meegedeel dat die internasionale finansile en ekonomiese wreld nie meer na die "ou" Afrika kan verwys nie, aangesien dit dringend nodig geword het om nuwe betrekkinge te ontwikkel wat Afrika tot voordeel strek - betrekkinge en vennootskappe wat verskil van di wat tot dusver gegeld het.
Dit is ANC-beleid dat betrekkinge met internasionale finansile instellings soos die Wreldbank en die Internasionale Monitre Fonds op so 'n wyse bedryf word dat dit die integriteit en die belange van die Suid-Afrikaanse ekonomie en bevolking bevorder. Maar bowenal moet ons self 'n beleid nastreef wat ons in staat stel om afhanklikheid van internasionale finansile instellings te voorkom. (Translation of Afrikaans paragraphs follows.)
[Closer to home, the Treasury's Unit for International Financial Relations promotes integration and the Treasury strengthens ties within the subregion by creating a climate that serves as a substructure for economic activities with the member countries of the Southern African Customs Union. Negotiations is taking place with regard to a new agreement concerning the distribution of income for the Customs Union which consists of Botswana, Lesotho, Namibia, Swaziland and South Africa. The unit plays an important role during the negotiations of the proposals by South Africa concerning the review of the agreement of the Customs Union. The unit is also supported by the Department of Trade and Industry during multilateral negotiations which are aimed at the implementation of the financial and investment protocol of the Customs Union. The unit will also investigate possible membership of the African Export-Import Bank and the African Reinsurance Corporation.
The development and progress of Africa remains the central goal of the ANC's perspective and policies for the promotion of the African renaissance and the transformation of the institutions responsible for global financial management.
In this regard, President Jacob Zuma informed the delegates of 60 countries during the opening session of the 21st World Economic Forum on Africa that the international financial and economic world cannot refer to the "old" Africa any longer seeing that it has become urgent to develop new relations which should benefit Africa - relations and partnerships which differ from those that were valid up to now.
It is the policy of the ANC that relations with international financial institutions like the World Bank and the International Monetary Fund should be conducted in such a manner that it enhances the interests of the South African economy and population. But above all we ourselves should pursue a policy which will enable us to prevent dependency on international financial institutions.]
South Africa is very fortunate to have capable financial managers who maintain the prudent international financial policies that can create an economic climate conducive to growth and job creation. At the same time, the medium-term strategy, as outlined in the 2013 Budget, is essential to rebuild fiscal buffers and reduce external vulnerabilities. These policies can provide the space to implement the reforms needed to increase growth and employment. These policies bring the most benefits to the entire population and continue building an inclusive country that can be a proud example to the international community. The ANC supports Budget Vote 10. I thank you. [Applause.]
Hon Chairperson, I think the Minister has to forgive us for being doubting Thomases today. Minister, if something is announced during the state of the nation address and the Budget - the government's two most premier platforms for announcing new policy - and then three years later you still have not implemented it, you will forgive South Africa for never believing anything you say again.
I must respond to what the hon Van Rooyen said. We are very glad for yet another commitment with regard to the implementation of the youth wage subsidy, of which, to be frank, we have had many, many before. The question is: Will we wait another three years ... Where is the hon Van Rooyen? ... [Interjections.] ... for the implementation? How long will it take? Minister, I am not sure whether you are aware of this, but today it is 1 195 days since you first announced the youth wage subsidy. South Africa has been waiting 1 195 days for a new plan to give young South Africans a chance at getting their first job. [Interjections.]
Again, I say it was brave, innovative and exciting. This party does not oppose it. We supported it, hon member. Call it what you want, it is fundamentally a good idea that will help hundreds of thousands of young people to get their first break in life, by getting a job and by beginning to build a better future. If it had been implemented when the President first said, it would already have benefited ... listen to this, Minister ... 442 935 young people. Today, you owe them an apology. [Interjections.]
All of my ANC colleagues should listen to the following. It is a commitment that you can take to the bank. Next year, when the DA gets into government in Gauteng ... [Interjections.] ... the youth wage subsidy will be implemented from day one. [Interjections.] [Applause.] That is what we have done in the Western Cape. We have already helped thousands of young people, who are still waiting, 1 200 days later, for your plan. They already have it in the Western Cape. Where the DA governs we see the crisis that you were speaking about, hon member. We see the crisis, we understand the solution and then we implement. [Interjections.] We would still like to see a national government programme. That is what we would like to see. [Interjections.] Where, then, is the youth wage subsidy and what happened to it? We are no closer today, 1 195 days later, than we were in February 2010.
We can't hide away from the facts. This policy has been singled out by the Minister's unionist opponents, both inside and outside his party, as a site of battle over who calls the shots in the ruling alliance ... [Interjections.] ... which everyone must now agree is an alliance in name only. [Interjections.] Yet the Congress of South African Trade Unions, Cosatu, and Minister Patel seem to be winning. The 1 195 days' delay so far confirms this impression.
Will the hon member take a question? [Interjections.]
Excuse me, hon member, no howling, please! Hon Hill-Lewis, would you like to answer the question?
Chair, I would like to finish my speech and then at the end I will answer his question. Thank you.
Please continue.
Now, instead of getting behind a genuinely decent and sensible policy proposal ... I want to answer your question so I am going to rush ... we have been presented with a half-baked Youth Employment Accord that makes vague and oblique reference to incentives. It is one word in the entire document, without any detail or a timeline. The Minister was quick to point out that the accord makes way for private-sector measures ... [Interjections.] ... as long as they are "approved by all constituencies".
Allow me to ask the Minister whether, in his mind, more than three years after announcing this subsidy and 440 000 jobs lost, the signing of the youth accord now means that he has got sufficient consensus to implement it? Why was it not implemented the day after that accord was signed? If so, please tell us when it will be implemented.
Sir, I will take your question now. [Laughter.]
A HON MEMBER: Time's up!
Hon Mufamadi, please ask your question.
Is there no question?
He withdrew his privilege of asking a question. [Interjections.] [Laughter.]
Hon Chairperson, I cut my entire speech to make ... [Inaudible.] However, let me just say ...
Just hold on please, hon Hill- Lewis.
I wanted the hon member to answer this question honestly and genuinely. [Interjections.] Who wrote the speech? Is it the hon Harris or he? [Interjections.] We have heard this speech before. [Interjections.] [Time expired.]
Chairperson, I will conclude by telling the Minister that we are not holding our breath. [Applause.]
Hon Chairperson, hon Minister of Finance, Mr Pravin Gordhan, Deputy Minister of Finance, Nhlanhla Nene and our chairperson of the committee, Comrade Mufamadi, my Whip, the hon members of this House, comrades and friends on my left, speaking on behalf of the ANC, I would want to avoid a situation whereby one would be deterred from responding to the prophecies of doom and dark horses that exist and that want to be in charge of this country when they have nothing to offer.
The National Treasury provides for the government's pension and postretirement medical benefit obligations to former employees of state departments and bodies, as well as retired members of the military.
Programme 7 of the Treasury's budget provides policy analysis and advice on an ongoing basis by completing annual reviews and implementing recommendations in accordance with stakeholder agreements reached on pension reforms, postretirement medical benefits, political office bearers and pension legislation.
The objectives and measures are as follows: to pay pensions to people who made sacrifices or served the public interest in the democratisation of South Africa through full implementation of the Special Pensions Amendment Act; to improve the turnaround time for pension payments by reviewing special pensions, medical pensions, military pensions and injury on duty processes and procedures; and lastly, to alleviate poverty by ensuring timely and accurate monthly payments of military pension funds, contributions to medical aid schemes, risk and administrative fees on behalf of members of the Political Office Bearers Pension Fund.
The Civil Pensions and Contributions Fund provides for the processing ... Ungangxami ndiyabuya mfo wethu, [Don't rush, I'm coming back to your point, my brother.] ... and payment of pensions and medical subsidies to retired civil servants, the injured, the disabled and the dependants of deceased civil servants and former struggle veterans in terms of various statutes, collective bargaining agreements and other commitments. The military pensions and other benefits make provision for the processing and payment of military pension benefits and medical claims arising from injuries sustained during various wars, including South Africa's liberation wars - I don't know whether you were there, my friends.
Before the integration of the forces, statutory force members were contributing to the Government Employees Pension Fund and stood to receive pension benefits on termination of their service. The former nonstatutory forces members, on the other hand, did not have the opportunity to contribute to any pension fund. This created a disparity between the former natural statutory fund, members and the former statutory forces members in as far as pension benefits were concerned.
The ANC, therefore, as champion for social transformation and human development, noted at its Polokwane conference that many former MK members remained destitute, unemployed, poor, and did not receive much assistance from the state, and that some of these former members were demobilised from the SA National Defence Force, SANDF, with little safety nets for their survival. We applaud the department for conceding to the demand of the ANC as the leader. [Applause.]
The conference went further and resolved that direct interest must be taken in the MK military veterans, and that has been done through the establishment of the Department of Defence and Military Veterans. This is a clear indication that the ANC, and the ANC alone, remains charged and bears the brunt of aspects that actually put our own comrades in the plight that they find themselves in just because not all of them could be absorbed into the system. Now, it is the ANC that is taking that responsibility and driving the process of meeting all their needs. [Interjections.] [Applause.]
The revised dispensation also brought about equity amongst members with more or less than 10 years service, to the extent that 50% recognition for members with less than 10 years service in the previous dispensation was cancelled. The Government Employees Pension Fund rules for the revised dispensation were approved, paving the way for implementation.
Bangayilibala ke aba bangapha ngasekhohlo kum ukuba kumagqala namajoni esasinawo phambi kokuba sifumane inkululeko, awabo kwakukho imirhumo ayeyenza njengokuba ayesilwa egebenga abantwana babantu. Kodwa la wona alwela ukuba kukhululwe umntu, le nto ifunwa nguThixo, wona ayengenanto ayifumanayo - ayengenamivuzo. Kwakungenakurhunywa nto kakade! (Translation of isiXhosa paragraph follows.)
[The ones on my left have forgotten that the veterans and soldiers we had before democracy - their soldiers - received donations for fighting against and killing our people. But ours were fighting for the freedom of all, this is what God wants, yet they received nothing - they did not have any rewards. Nothing was given to them, by the way!]
However, the ANC-led government ...
... uze ngaphambili wathi anisoze nife, nifele ilize. Namhlanje baneendawo zokuhlala. [... came forward and said you are not going to die, and die in vain. Today, they have residences.] [Applause.]
The ANC, as the leading political party in this country, has the responsibility of ensuring that yesterday remains different from tomorrow; it will never be the same.
Ungomso wohlukile kwizolo. Sifun' ukubulela ... [Tomorrow is different from yesterday. We want to show gratitude ...]
... as the ANC, for the deployment we made that ensured that the finances ...
... ezijongene nokuba kulungiswe iinkxwaleko ezenziwa ngoorhulumente bangaphambili zabelwe oko. Umfo kaGordhan nomfo kaNene, beqhutyelwa ngumzukulwana kaFuzile, baqinisekisa ukuba ... [... meant to redress injustices caused by the apartheid government are allocated for that. The son of Gordhan and the son of Nene, with Fuzile's grandson at the helm, are ensuring that ...]
... the gaps that exist between the haves and the have-nots are actually closed, including those who fought ...
... phaya emahlathini, becunyuzwa iintloko ngooyihlomkhulu benu, nina makwedini! [Kwaqhwatywa.] Kufuneka siyitheth' icace ... [...there in the battlefield. They were crushed and killed by your forefathers, you boys! [Applause.] We need to state it clearly ...]
... as the ANC, that ...
... ukususela ngowama-2010 ... [... from 2010 ...]
... when we revised the national nonstatutory forces' pension dispensation, which was approved by Cabinet at its meeting on 24 November 2010, we made provision for 100% recognition of the service period of the former nonstatutory forces members. This report followed a Cabinet decision in 2009, to create a new service dispensation for the Defence Force.
Ngubani ke ongathi lo rhulumente we-ANC akawenzelanga nto kwaye engazimiselanga kuwenzela nto amagqala namaxhoba okulwela inkululeko? Ndithi ... [Who can say that this ANC-led government did nothing and is not prepared to do something for the veterans and the victims of the struggle? I'm saying ...]
... down with the Blues, down! The ANC, and the ANC alone, remains committed to ...
Will the hon member take a question?
Will you take a question, hon member?
I don't respond to spokespersons here. I respond only to hon members of this committee, because the committee is the spokesperson for the hon Lewis.
Makahlale phantsi, ndiza kubuya ngaye ... [Uwele-wele.] [He must sit down; I will get back to him ... [Interjections.]]
I therefore, on behalf of the ANC, call upon all those who have moved out of our ranks to form a party on the basis of their anger to come back home. It is too cold out there. [Interjections.] As my own experience has taught me, it may just be one of them who has a problem with just one ANC member or leader and has decided to hang him or herself. So, there is no need for solidarity with someone who has an issue with an ANC member and not the