Hon Chairperson, Minister, Deputy Minister, hon members, guests, ladies and gentlemen, let me also express my condolences to the chairperson of the committee, hon Peter Maluleka, who has had three bereavements consecutively. It has been a sad time for him.
I rise on behalf of the ANC in support of the budget for the Department of Public Enterprises. We noticed that the economic crisis resulted in an increased role for the state in the economy in major parts of the world, particularly in driving investment. In South Africa, where the private sector's activities have continued to be subdued, state-owned companies have assumed major strategic importance regarding investment, job creation and economic growth, hence the ANC-led government's decision to make major investments in infrastructure.
State-owned companies are not created to maximise profits or incur losses, but rather to drive the developmental agenda. It is therefore correct for the state to intervene - when the invisible hand of the market fails - and provide a guarantee to SA Airways, in this instance. It cannot be construed as a moral hazard. It is common cause that the working capital of the airline was depleted, presenting the immediate risk of the company not being able to meet its obligations. The deterioration of the debt equity position of the company required the intervention of the shareholder to stabilise the company.
We want to congratulate SAA for making sure that every Member of Parliament who flies SAA has never, ever been late for Parliament. [Applause.] This is in line with what government is doing with the South African Airways Act, as amended in 2007. Let me quote what it stated when we amended it:
Since the Republic's rapidly developing economy requires reliable and extensive air transport capacity; and since the state desires to promote air links with the Republic's main business, trading and tourism markets within the African continent and internationally; and since the state has a developmental orientation and regards South African Airways as a national carrier and strategic asset that would enable the state to preserve its ability to contribute to key domestic, intra-regional and international air linkages, the state intends to retain it as a national carrier.
When I checked the Hansard, I saw that the DA supported that Bill.
Investment by the state corporations has played a fundamental role in moving the economy out of the recession and has crowded in private sector investment. The policy strategy is to use the strength of the state-owned enterprises and to direct private sector investments in the productive sector of the economy to stimulate the manufacturing and entrepreneurship development programmes that will enhance the deracialisation of the economy. The strategy is also to create new firms and industries and to focus on the productive economy as opposed to tender-dependence in economic transformation.
As members have said previously, the ANC welcomes the constant search to use information and communications technologies to improve service delivery to citizens. As was said earlier, this extends to all areas, stretching from the health sector, making sure that we can transfer files and/or medicines of patients to remote areas, to having links with various schools, and so on. It also involves connecting very many different centres through high-speed bandwidth. Broadband Infraco's overhauled network is available as a core platform to deliver such service to citizens. Broadband Infraco has become an important part of almost every aspect of the knowledge economy, especially so in activities that rely on the provision of data and information, particularly in service sectors.
The ANC-led government, through Broadband Infraco, assumed the status of a major investor in the West African Cable System, Wacs, which is a submarine fibre-optic cable of about 14 5000 km long that links Southern Africa, West Africa and Europe. In South Africa and Africa we are at last starting to experience lower international bandwidth costs to create sustainable and efficient international bandwidth in South Africa. Very importantly, it will also ensure cost-effective access for the Square Kilometre Array, the SKA, telescope as we heard earlier on. We want to congratulate Infraco. You are often not spoken about because you are a small entity, but you are doing big things. [Applause.]
Comrade Minister, the ANC wants Infraco to continue aligning the entity with the objectives of the National Development Plan; the SA Regulatory Framework to be changed to ensure that Internet broadband capacity improves; and prices to fall significantly so that access improves.
Today we heard many different members in the opposition on various aspects of the Transnet pensions issue. This is just absolutely pure politics that is being dished up for everyone here. [Interjections.] The trustees have implemented most of what we as Parliament brought to them. They have put it very clearly to us where it was impossible and not affordable for them to comply. They are currently even considering changing some of the rules! More than that, the trustees are coming to Parliament quarterly to report to us on what is happening regarding the pensions issue. We will meet you on the hill. [Interjections.]