Chairperson ... [Interjections.] ... this is an SMME shirt! [Applause.]
Holobye Davies, vamanana vambirhi lavo saseka va Swandla swa Holobye, Swirho swa Huvo na vuyeni lebyi nga eka galari ... [Minister Davies, the two beautiful lady Deputy Ministers, Members of the House and the guests in the gallery ...]
... the basis of South Africa's economic challenge is a structural economic challenge which, if not qualitatively addressed, will exacerbate growing income inequality. This challenge relates to skewed patterns of ownership and production, characterised by inequality, dualism and marginalisation. In addition, the monopolistic domination of the economy is an obstacle to the goals of economic transformation, growth and development.
Hon Wayile has given us a context so that, when we look at the challenges that are faced by South Africans, they are not seen as being seeds planted by the ANC. No, all that the ANC government is doing is uprooting most of the evil things that were planted as long ago as the time of Dr Verwoerd and his colleagues.
The year 2012 was declared the International Year of Co-operatives and the theme was, "Co-operative enterprises build a better world". The theme seeks to capture not only the significant role that co-operatives are playing in the global economy and at local level, but also to articulate the resilience and stability of the co-operative enterprise model. To illustrate this, I may mention that when the whole world was sunk in depression and the other economic forms could not shoulder the world, it was co-operatives that held the economy sky high. [Applause.] All those countries that have co-operatives embedded in them did well under those strenuous conditions.
Let me tell you why co-operatives are important. When we talk about co- operatives, one could think that we are talking simply about developing countries, but we are talking about developed countries as well. For example, France has 21 000 co-operatives which have created one million jobs. In Kenya, 63% of the population derive their livelihoods from co- operatives. Approximately 250 000 Kenyans are employed by and gain their income from co-operatives. By the way, while we were in Kenya cheese, milk and yoghurt were made in our presence - that is the reality. In Columbia the co-operative movement provides 137 888 jobs. In Indonesia it provides 288 586 individuals with jobs. In the USA - it is important that you listen carefully, as this is the USA - 30 000 co-operatives provide more than two million jobs! When we say that we must strengthen co-operatives in South Africa, we are looking at a model that succeeds.
How should SMMEs and co-operatives be treated in order to succeed? It is critical that SMMEs and co-operatives are paid on time after they have rendered services, either to government or the private sector. [Interjections.] Government should protect SMMEs and co-operatives from big business, who sometimes run away without paying the subcontracted SMMEs and co-operatives. [Applause.] Working space is often a challenge to SMMEs and co-operatives. Here we call upon municipalities to ensure that they assist them with land and other infrastructural needs.
It is important to note that white people who acquired land through the Land Act of 1913 should not be too greedy and hold onto the land. Greed kills. [Interjections.] White people who acquired land in that manner should make part of it available to the government so that it can be used for co-operatives and SMMEs. [Applause.]
What factors make co-operatives and SMMEs succeed? We have nonfinancial support in the form of the Small Enterprise Development Agency, Seda. We also have financial support in the form of the National Empowerment Fund, NEF, the Industrial Development Corporation, IDC, and the Small Enterprise Finance Agency, Sefa.
The Co-operatives Amendment Bill calls for the establishment of a co- operatives development agency, as well as a co-operatives tribunal. The NCOP has already passed the Co-operatives Amendment Bill and very soon we will have the Co-operatives Amendment Act. [Interjections.] I am very good at being rude, but I am controlling myself. Please, don't push me there, because I can easily go there! [Applause.]
The co-operatives development agency will support, promote and assist with the development of co-operatives, provide financial and nonfinancial support to co-operatives, and provide business and support services to co- operatives. The main function of the co-operatives development agency is to intervene when there is conflict amongst co-operatives. There is also financial support. The function of the agency is, inter alia, nonfinancial support services, education, and training.
Let me spell out the fact that co-operatives must not be relegated to being poor little institutions! Co-operatives can be giants! In the countries that I have spoken about, co-operatives build buildings and rent them out. They must be seen as maintaining sustainability. They are growing all the time. That is why, typically, the following should be remembered. The type of activities that are engaged in by co-operatives should not be regarded as "little ones", but ... The ANC supports this Budget Vote. Thank you. [Time expired.] [Applause.]