Thank you very much, Chairperson. Chairperson, at the start of this debate, we were informed that you could not be found. I just thought that I would give you a friendly reminder that in this environment that I am in now, we do not allow for a vacuum. [Laughter.]
Allow me, Chairperson, to acknowledge the presence here with us today of a delegation of Namibian Ministers, who are here with us for the South Africa- Namibia binational. We have with us the Minister of Safety and Security, the Minister of Defence and the Minister of Home Affairs. [Applause.]
Chairperson, Ministers, Deputy Ministers, hon members, ladies and gentlemen, in September last year, former Minister Charles Nqakula became Minister of Defence after a well-publicised sudden double vacancy in the Ministry. In eight short months he boosted the morale of the Defence Force and gave it dignity and integrity. We extend our sincerest appreciation to you, dear Comrade Charles, for your contribution, given in humility, as always. [Applause.] May you have many peaceful nights, knowing that you have handed this institution over to two equally committed people, the Deputy Minister and I.
Today, as I speak, despite the challenges that we encounter around the doctors' strike, I stand very proud that there is not a single South African that needs medical assistance at affected public hospitals that is not being provided such assistance, as the Defence Force has stepped in to fill the gap left by the striking medical practitioners. The SA Medical Health Services is currently deployed in KwaZulu-Natal, Gauteng, the Free State, the Western Cape and Mpumalanga. My sincere gratitude goes to all those officers who have responded to our urgent call for assistance as we allow the Minister of Health to resolve all other outstanding challenges in the health sector. You have delivered us from an untenable situation and done us very proud.
That leads me to say with confidence to this House that our country and our people are in good hands in the Defence Force, at all times. General Ngwenya, chiefs of the services, to you and the Defence Force, thank you very much. [Applause.]
Chairperson, we have with us today representatives of military veterans. It is a singular honour for us that when finally the government sought to recognise the immense contribution of our military veterans, we, my deputy and I, should have been found to be the people to chart the scope and direction of this commitment.
It is a poignant and significant moment indeed for all of us who sit in these chambers and craft laws, secure in a democracy which we owe to our veterans. It has taken us as a government a long time to get to this point. We recognise that without you, we would not be who we are, or where we are. Finally, you are now in your rightful place, and this is cause for celebration. [Applause.]
To execute our responsibility we have established a task team consisting of members of the Military Veterans Association and representatives of various stakeholders. The task team resides under the Deputy Minister and he will elaborate on this in his input. Preliminary indications are that we would want to go the route of a separate Vote and a separate department for military veterans. [Applause.] Mr Van der Merwe, you better close your mouth! This would allow us to create the necessary vehicle within which we can provide for our responsibilities for military veterans.
Notwithstanding the protracted delay in addressing this issue, it is my considered view that our approach should be informed by well-researched, properly benchmarked and well-crafted strategies. It is in this regard that the Deputy Minister will place the task team report before this House for consideration as we build consensus around military veterans' issues, through a thorough consultation with other organs of state, industry and business, so as to provide for knowledge sharing in developing a multipronged strategy.
The deadline we have set ourselves is October 2009. I humbly ask the military veterans, the people affected by this, for a little more patience as we craft this vehicle that will support our work. We pledge our commitment to you and we hope we can make up in some way for the pain and sacrifices you have endured.
Now, I turn to the budget. Hon members will understand that the budget as it stands before us right now is primarily concerned with the Defence Force.
At this point I want to acknowledge the Portfolio Committee on Defence, our oversight body. I am looking forward to a good and strong working relationship. As you all know, there are a number of challenges that we are facing in Defence that require us to work together. It is my hope that the Portfolio Committee on Defence will in this regard be sympathetic to defence matters. Did I get a smile from you?
In the past three weeks we have had occasion to brief the Portfolio Committee on Defence on our strategic vision for the current period. We were encouraged that members of the committee were very clearly on top of their responsibility. I want to assure them: So are we, and we hope that this makes for a very healthy and dynamic partnership.
My Deputy Minister and I are not new to this portfolio. As a matter of fact, we are pleased to be back at a place where we both cut our political teeth. It is our intention to nurture the relationship between ourselves and the committee for the benefit of our national assets - the SA National Defence Force and the people who fought for our freedom, the military veterans.
In the past week an important matter has been raised in discussions of the Portfolio Committee on Defence, important in the sense that right at the outset it allows us to be in alignment with each other, and ensures alignment with the rules and regulations of Parliament and the spirit of the Constitution. The matter under discussion is the demand by the portfolio committee that the Department of Defence provides it with a briefing on the state of readiness of the SA National Defence Force.
As I indicated, the Deputy Minister and I are old hacks in this environment. We both sat on the Joint Standing Committee on Defence, we both sat on the Portfolio Committee on Defence, we both sat on the Joint Standing Committee on Intelligence and we both sat on the committee making inputs to the constitution-writing process, specifically dealing with defence and security. Here therefore is the spirit of the Constitution that we were part of creating and our understanding of this.
To give effect to section 199(8) of the Constitution, the basic assumption and intent was that, while we understood that we had an oversight responsibility, which ensured maximum accountability, we also had ensured that this oversight responsibility was sensitive to the security and the defence establishment and that this security was as important to protect as was the requirement for transparency.
Now, it is quite possible - I have no idea, but it is quite possible - that over the years a different practice has slowly been creeping in. It is fortuitous therefore that the matter was raised right at the beginning of our term in office, for it allows us to put corrective measures in place. I urge members to look into the matter so that we in the executive are very clear on what the various mandates are: Our mandate, your mandate, the mandate of the Joint Standing Committee on Defence and the mandate of the Joint Committee on Security Matters in Parliament.
We have an obligation to insist that the state of readiness of the SANDF can only be given to such a committee as has the right to call for closed meetings. If such a committee is indeed the Portfolio Committee on Defence, it would help us to have this as a common understanding. Then we can make the necessary arrangements that at all times when you require briefings which we regard as of a secure nature, we call for closed meetings.
It is in the interests of the country and in your interest that we insist on this. We have no other interest beyond ensuring that your security is protected by all concerned. We stand ready therefore to brief you on the state of readiness of the SANDF. We only ask that you ensure the security environment and mandate where this can be done.
I was heartened, however, to see that at the last briefing on the state of readiness of the SANDF in 2008, the committee had itself ensured maximum adherence to security requirements.
We have now been responsible for the Defence Force for all of six harrowing weeks. It would be proper right from the outset to admit that we have major challenges at Defence and it is for this reason that we are hoping to have a good relationship with the portfolio committee; one that transcends party- political boundaries and concentrates on this national asset.
The first challenge that confronts us is a declining budget where our domestic obligations remain defined in the Constitution, against a backdrop of our growing international responsibilities; against a deteriorating infrastructure; and, very importantly, against a clear and pressing reality that the conditions of service for the Defence Force need our immediate attention. We have a responsibility to enhance and maintain comprehensive defence capabilities to ensure that the territorial integrity of our country and its sovereignty is protected. This is a constitutional requirement and we need to keep ourselves in a state of competence, in a state of constant renewed advancement, and, in a language that is very common here, in a state of readiness. With a declining budget our competence is severely hampered, with dire consequences.
Peace, that which we are required to guarantee, is immeasurable. What it provides for ourselves and the African continent cannot be quantified. It is that without which it would not be possible for us to realise our development as a continent. We provide that, and for growth, we need to continue providing that, because it ensures our own sustainability. It is not a choice; it is a requirement, an obligation. I request hon members to consider this as we present the budget of the Defence Force.
We are of course acutely aware that we are in a recession, but we request that you assist us to stem the decline, because it is eroding our capacity. We are aware of the constraints of government, therefore we will propose a number of strategies that we will be putting in place to ensure that we are not an additional burden to the state. However, we cannot allow another decline and should not allow any further erosion from the Defence budget.
The second challenge we are faced with is perhaps our own shortcoming. For the past nine years or so the Auditor-General has given us qualified reports. This is a matter that concerns us, as I am sure it concerns you. We have immediately put steps in place to ensure we have the necessary capacity in our financial management to begin to produce different results, because we are keenly aware that it is only when we begin to effectively marshal our resources that we can get better returns.
To begin with, we have had to look at the structure of the Defence Force and its relationship to the Secretariat for Defence to see if we cannot have logical alignment there. We have had extensive discussions around this matter and the Deputy Minister has been asked to look into this. I chose the Deputy Minister because I thought that this is something that only a male logic can disentangle. [Laughter.]
We would then have to move swiftly to fill the vacant position of CFO and ensure we can give all the necessary infrastructure support for this office. We must ensure that there is improvement in the current planning, management and monitoring of departmental spending, ensuring value for money for the Department of Defence. Our third challenge is the defence industry. We are aware that we have not had outstanding performances in the defence industry, ie Armscor and Denel. We are paying particular attention to ensuring that the necessary management and governance is in place.
I have on my table a report from the Portfolio Committee on Defence, dated 2008, indicating that the committee has looked at the matter of Armscor and made some very strong recommendations. I would like to ask for time to deal with the matters that have been raised in the report. I have had occasion to meet with the chairperson of the board of Armscor and we have agreed that we need to deal decisively with a number of outstanding matters.
On the matter of Denel, we have to serve notice to hon members that we intend to negotiate Denel back into the ambit of the Defence Force. [Applause.] I have had discussions with the Minister of Public Enterprises and indicated that, at the very least, we need to embark immediately on a strategic realignment of Denel. Denel is a strategic security manufacturing asset for Defence and we would like to retain it as such. [Applause.]
I am aware that the defence industry requires an exhaustive interrogation. Both Armscor and Denel will be part of this, which must consequently extend to every sector of the industry. This should be conducted in a way that will subsequently produce effective command and control measures and effective turnaround.
The fourth challenge is an outdated Defence policy. We are embarking on a policy review to ensure that the Defence Force is in line with the lived reality of our democracy. We want to take on board what we have become and take into account new challenges facing us as a country and as a continent.
We have new obligations beyond our borders now. Our responsibility on the continent has become an important part of our foreign policy. A new policy review has to consider the logic that underpins the necessity of a force design of the SANDF that must be able to contribute appropriately to disaster relief, peacekeeping and humanitarian assistance as part of buttressing the project to consolidate democracy in countries that have recently emerged from conflict.
It is with the realisation of this necessity that the department is developing a review document which will be distributed for comment once it is consolidated. The strategy focuses on the achievement of the mandate by having the required capabilities, as opposed to being a financially driven strategy.
Major changes have taken place in the Defence environment over the past 15 years. The world has changed radically, forcing us to look at new approaches to doing things. The new environment requires of us new thinking about our place in it, our relevance to it and possibilities that are thrown up by this. Our approach will now have to give absolute priority to the economic development of our country and our value-add to our society.
Chairperson, we have identified the above challenges that we have elaborated on and have worked out what we are we doing about them, for now.
The negative impact of the present economic situation on the country and the world is daunting. This has impacted negatively on government planning. However, I have learnt a few apt phrases with this economic situation and the one that strikes a chord with me, is "Let's not waste a good crisis." Let's use it to think creatively about how we can turn it into an opportunity. For us as the Department of Defence, it offers us an opportunity to position ourselves to offer essential skills that will grow the economy.
The Defence Force is one of the best multidisciplinary training grounds you can find anywhere in the country. It is home to cutting-edge technology and research, be it in medicine, engineering and hydro, or space and meteorological research.
In a country bedevilled by skills shortages, it presents itself as one avenue that the nation can tap into. It is an equal opportunity provider to those who wish to advance themselves. It can provide all forms of skills imaginable. The programme of training and skills transfer that the Department of Defence can provide might prove to be the answer as we search for the formula of what makes for an efficient and capable state.
In rethinking our role in the economy, we would like to provide training for essential skills in the economy. We believe we can play a pivotal role in providing the bulk of this. In any country, the defence force is an institution where young people are given skills. We want to inject this into our society, because we have huge skills training capabilities and have tested this through our Military Skills Training Programme. We want to extend this to cater for various industries and government departments.
The Military Skills Training System aims to provide the SANDF with the military human resources required by the Defence mandate to empower the youth through training and development opportunities whilst serving in the Military Skills Development System, and to instil sound ethics and values of civic responsibility. It can form the department's primary contribution to invest in the youth and to alleviate unemployment and poverty by preparing them for decent and rewarding careers.
A positive outcome of the Military Skills Development System is that while the SANDF provides the skills, it takes the unemployed youth and provides them with discipline, civic education, character development and purposefulness, and infuses them with patriotism.
We wish to sell this concept of opening up our skills development for government departments and the private sector. A very good example of the skills that we have been able to provide over the years is the pilot training programme that we have had. SAA, South African Airways, today is ranked as having the highest standard of aviation safety in the world. We would like to claim that this is in no small measure owing to the bulk of their pilots coming from the Defence Force. [Applause.]
This type of training allows us to provide continual service. The list of possibilities for government is endless - I just quoted SAA. What this does do is to allow the Defence Force to re-skill our youth, provide a spurt of energy into our economy and provide us with some revenue from the various departments we are servicing as a service provider, which means that our renewal can be taken care of by ourselves.
We are faced with huge unemployment, especially amongst the youth, a youth that could quite possibly be disgruntled, with no prospects of employment. We are the answer to that unemployed youth. We can increase our capacity, so that we can respond to the second most urgent challenge facing us in this country. [Applause.] If you want to deal with the issue of unemployment, think creatively about the Defence Force.
Chairperson, the matter of our support to the South African Police Service, SAPS, has raised concerns. Let me clarify: We have agreed with the justice, crime prevention and security cluster that we need to play a more active role in assisting the SAPS to deal with issues of crime. These are matters under discussion at the moment, against a backdrop of very clear legislative mandates that we are aware of.
What we have agreed to in principle, though, is the fact that the defence of our borders might need to remain in the hands of the Defence Force for some time. This will ensure that we can release the police to deal with crime inside the country. [Applause.] Our first protocol was signed by the President in 2008 and we will be working on this on an incremental basis.
We turn now to the soft underbelly of Defence: its skills and human resource base. Like any other defence force around the world, the SANDF depends on men and women who have chosen to serve their country and its citizens. We are very proud of these officers who have distinguished themselves in the course of their duties as we celebrate 10 years of peacekeeping on the continent. Our contribution and professionalism can be attested to by the acknowledgement received from the African Union and the United Nations pertaining to the manner in which we have conducted ourselves during our deployment.
The creation of a dependable, agile and flexible human capital base remains my focus for the financial year. The high rate of skills migration and dearth of rare skills require the introduction of modern approaches for mobilisation and deployment of human capital, so as to accelerate the accumulation of specialised skills and retain these. The demand for a well- trained, multi-skilled, disciplined and well-equipped defence force as a critical lever for the developmental agenda of government is a reality we cannot avoid.
The outflow of skilled technical personnel, engineers and combat personnel from the Department of Defence continues to lead to a reduction in the experience levels at units. Incentive schemes to mitigate this challenge have been introduced and are adjusted regularly in line with changing requirements. Further, we are exploring a strategy to address the retention of scarce skills within the Department of Defence.
I want to assure the Defence Force staff that their conditions of service are a concern to us. We are seized with the matter and I would like to engage each one of them through the proper management structures to see how we can attend to this. We are acutely aware that the state of readiness of the SANDF depends primarily on the morale of our soldiers.
Having assessed our options, we are considering making a request for a separate Department of Defence that would allow us to deal creatively with our own needs and specificities. There is a precedence to this in the creation of a special dispensation for the intelligence services. We would like to apply this to ourselves if it is possible. However, this would require some thought and further negotiation.