Chair, I am just coming to the podium because of the height of the microphone, not to invite questions from the hon Manuel. [Laughter.] It is quite a dangerous situation to be that close to the Minister. Hon Chairperson, thank you for the opportunity. Hon members, in the last year, South Africans have been subjected to significant increases in the cost of living. Electricity - I am always speaking about it - fuel, food and public transport have all become more expensive in a matter of months.
The cost of a basic food basket has increased on average by 16% per year for the past five years, well above the inflation rate of about 6%, and the price of electricity has effectively increased by 82,3% in the past three years. Petrol prices have increased on average by 11% over the past decade and, to top it all, Metrorail's ticket prices have effectively increased by 69% in the past three years, which is a significant increase. I think we will talk about that later.
This is, unfortunately, a continuation of a painful trend. When prices increase at this rate, significant pressure is exerted on the poorest of South Africans, and many speakers have alluded to that. Millions of people will be forced to decide what to cut from their budgets this month - quite a tragic situation. Some commentators suggest that the increasing cost of living is purely due to external factors and that we are powerless to act.
There is, in fact, a great deal that government can do to help shield poor South Africans from rising prices, foremost of which is, of course, devising economically sound policies built on accurate and honest statistics, and I think the Minister has alluded to that as well.
This indicates the importance of statistics, the subject before us today. Information is indeed power in a knowledge economy, and the platform of a planning and monitoring environment is anticipated in our Statistics Act, Act 6 of 1999. The draft national development plan asserts that South Africa can eliminate poverty and reduce inequality by 2030, and I would like to join my Afrikaans-speaking colleague by saying the following in Afrikaans.
Dit is inderdaad 'n belangrike doelwit, dame, en ek dink u het ook daarna verwys dat die voorsitter se nasionale ontwikkelingsplan se doelwit om teen 2030 armoede te verminder en ongelykhede uit te skakel onderskryf word - en ek dink ons deel almal hierdie visie. 'n Ekonomiese en sosiale infrastruktuurinvestering is krities noodsaaklik om volhoubare groei te bevorder. (Translation of Afrikaans paragraph follows.)
[It is indeed an important goal, madam, and I think you also referred to the fact that the goal of the chairperson's national development plan to reduce poverty and to eliminate inequalities by 2030 should be endorsed - and I think that all of us share this vision. Investment in economic and social infrastructure is of vital importance to the promotion of sustainable growth.]
The recent economic downturn in the South African economy, accompanied by higher unemployment and poverty, constitutes issues that trigger demands for new and better statistical information, and that was alluded to in many new methodologies that the committee is embarking on. Radical inflation in the products that predominantly affect the poor also calls for serious reflection on how inflation is measured.
Firstly, the official unemployment figures have been contentious for some time, and it is no secret that the most recent figure of 25,2% for the first quarter of 2012 is an understatement of the truth. Let me just get to the notes of the hon Minister, who indicated in his opening remarks how important the figure of employment actually is. You also indicated, Minister, that the important factor here is that people will know and Parliament will be trusted in terms of this figure. The figure excludes discouraged workers.
Di syfer sluit ontmoedigde werkers uit. [This figure excludes discouraged workers.]
I think this is hugely problematic, and the parameters within which "discouraged" is defined are questionable at best. Are you really only discouraged if you haven't sought work for a week prior to responding to the labour force survey? I think the hon Ollis would also know something about the labour force survey.