Deputy Speaker, hon members, good evening. The Constitution of the Republic mandates Parliament to pass an Act that outlines procedures in terms of which money Bills can be amended. This piece of legislation will go a long way towards empowering Parliament to exercise its oversight responsibility more comprehensively by holding government accountable for both nonfinancial and financial performance.
The Money Bills Amendment Procedure and Related Matters Bill seeks to establish a procedure to amend money Bills before Parliament within the context of oversight findings and the adoption of a fiscal framework. It further establishes a parliamentary budget office to provide research support to Parliament and its committees in maintaining oversight of the Budget process and possible amendments to money Bills.
During the past 14 years, Parliament managed to change a lot of racist apartheid laws that excluded the majority of people of this country. But when it comes to the oversight role over the executive, the approach has not been the same and it has not lived up to expectations. You have a situation where some committees are willing to ask the executive difficult questions in ensuring that the monies appropriated to them are spent accordingly. On the other hand, you have committees that have chosen the easy route of becoming the spokesperson of the executive and ignoring their political responsibility as outlined in the Constitution. The behaviour can be attributed to lack of capacity in committees to analyse strategic plans and budgets presented to them by government departments. Therefore, the establishment of the budget committee, with all the resources it requires, will respond directly to this challenge.
Section 9 of this Bill prescribes a clear procedure on passing the Division of Revenue Bill. It says that any amendment to the Division of Revenue Bill must be consistent with the adopted fiscal framework and section 214 of the Constitution and that the Standing Rules must, amongst other things, provide for the participation of chairpersons of other committees and civil society by means of public hearings. These Standing Rules must also provide for provinces and local governments affected by the amendments to respond to the proposed amendments.
In ensuring that Parliament exercises its rights responsibly, the Bill proposes that Parliament consults with our institutions that enhance democracy and transformation. In this case, we are talking about the Financial and Fiscal Commission, which gives advice to organs of state on fiscal matters.
Regarding the passing of an appropriation Bill after the adoption of the fiscal framework, the appropriation Bill must be referred to the committee on appropriations of the National Assembly. This clause proposes that the Minister table proposals setting out strategic priorities, measurable objectives and other performance information for each department, public entity or institution against expected revenue and proposed expenditure according to their plans.
After the appropriation Bill has been referred to the NCOP, it must be referred to the committee on appropriations of the Council. The House must then consider the recommendations of the committee on appropriations to release funds within seven days after the committee has reported to the House.
Regarding the passing of revenue Bills, they must be referred to the committee on finance of the National Assembly for consideration and report. In amending revenue Bills and revenue proposals, Parliament and its committees must ensure that the total amount of revenue raised is consistent with the approved fiscal framework and the Division of Revenue Bill. Parliament must also consider the impact of proposed changes on the composition of tax revenue with reference to the balance between direct and indirect taxes and also consider regional and international tax trends. Standing Rules, in relation to this section must provide, amongst other things, for the committee on finance to consult with other committees and to report to the House in terms of subsection 7.
At the beginning of my input I mentioned that one of the objects of this Bill is to establish a budget committee. This committee will focus mainly on providing Parliament and its committees with independent, objective and professional advice and analysis on matters relating to the Budget and other money Bills. Its core function is to support the implementation of this Act by undertaking research and analysis for the committees. The function also includes the following: providing reviews and analysis of the documentation tabled in Parliament by the executive; and providing advice and analysis on proposed amendments to the fiscal framework, the Division of Revenue Bill and money Bills and on policy proposals with budgetary implications.
In conclusion, this is such a powerful piece of legislation which we have been waiting for for quite some time. We hope that committees will use this space that is being created by this Act to address the socioeconomic conditions of our people effectively. The ANC supports this Bill. Thank you. [Applause.]