30 OCTOBER 2007 Page 1 of 104 TUESDAY, 30 OCTOBER 2007 ____ PROCEEDINGS OF THE NATIONAL ASSEMBLY ____ The House met at 12:04. The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation. ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000. SPRINGBOK VICTORY IN RUGBY WORLD CUP (Draft Resolution) The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move: That the House - (1) congratulates the Springbok rugby team on winning the 2007 IRB World Cup; (2) expresses its appreciation to the team for its part in making Saturday, 20 October 2007, a memorable occasion; 30 OCTOBER 2007 (3) Page 2 of 104 acknowledges that the Springbok’s victory united the country; and (4) expresses the hope that South Africa will retain the World Cup in 2011. Mr T D LEE: Thank you, Madam Speaker. While today is about the Springboks, we must not forget the Cheetahs who are the Curry Cup champions of South Africa. [Applause.] Madam Speaker, on Saturday, 20 October, I sat with my family in Port Elizabeth, the home town of Alistair Coetzee, watching the Springboks play the final match in the Rugby World Cup. It was my sister’s fiftieth birthday and what a birthday present. I will always remember where I was that night, because that is how we as humans commemorate great moments in our lives, with strong and unyielding passion, with the memory of the event that never fades away. That was a great moment in South Africa’s history. To the Springboks, to the support team and to you, Jake White, we will honour you and we will miss you when are you no longer the coach of our team. I salute you! [Applause.] 30 OCTOBER 2007 Page 3 of 104 In die DA, glo ons daaraan, dat jy op verdienste in ‘n span moet kom en weet ons dat al hierdie spelers op verdienste in die span is. [Applous.] Ons weet dat julle danksy julle ingebore en later vertroetelde talente, sover gevorder het en ook danksy skole wat julle potensiaal raakgesien het en julle gedruk het om dit te verwesenlik. Die span wat na verdienste gekies is, het die belangrikste rugbytoernooi ter wệreld gewen. Gevolglik was daar ‘n massiewe opwelling van positiewe emosie en ‘n gebeurtenis met min gelyke in Suid-Afrika se geskiedenis, wat almal verenig het. Daarenteen is daar voorstaanders van kwotas wat glo dat ras moet bepaal watter keuses Suid-Afrikaners moet maak. (Translation of Afrikaans paragraphs follows.) [The DA believes that a person should be included in a team on merit and we know that all these players have earned their place in the team. [Applause.] We know that they got as far as they did thanks to their inborn talents, which were developed later, thanks to the schools that spotted their potential and pushed them to realise that potential. The team, which was chosen on merit, won the most important rugby tournament in the world. 30 OCTOBER 2007 Page 4 of 104 Consequently there was an enormous upsurge of positive emotions, and an event with few equals in South Africa’s history, which united everyone. On the other hand, there are those who favour quotas, who believe that race should determine the choices South Africans must make.] Many of those people who fervently call for quotas are sitting here today ... [Interjections.] ... basking in your glory - the very institution they have actively fought to undermine. Jake, there is no doubt that success has many fathers but failure is an orphan. Now the question South Africa needs to ask in the light of this triumph is: Do we want to limit our choices by focusing on race, as the ANC believes we should ... [Interjections.] ... or should we strive to be the best we can, like the Springboks? If we want to be the best, then the government needs to support us and provide us with opportunities so that we can make the choices that we want to make. Prof B TUROK: Madam Speaker, on a point of order: What the speaker is doing is dividing the House when it should be united. [Applause.] The SPEAKER: Hon member that is not a point of order. The hon member is expressing a view. 30 OCTOBER 2007 Page 5 of 104 Mnr T D LEE: Suid-Afrika se mense is die enigistes wat kan besluit watter een van die twee opsies hulle wil hệ. ‘n Mens hoop dat die Springbokke se oorwinning sal help om daardie keuse makliker te maak. As ek so na die opwelling kyk, het die mense die keuse gemaak. Julle het self gesien hoe mal die mense in die strate oor julle was - en nou verwys ek na die Springbokke. Julle het ‘n beker en heldestatus huis toe gebring en dit met julle optrede, onder al die mense in hierdie ... (Translation of Afrikaans paragraph follows.) [Mr T D LEE: The citizens of South Africa are the only people who can decide which of the two options they prefer. One hopes that the Springbok’s victory will help to make that choice easier. When one considers the upsurge of emotions it is clear that the people have made their choice. You saw for yourselves how crazy the people in the streets were about you – and now I am referring to the Springboks. You brought home a trophy and the status of heroes and spread it among all the people ...] The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, is the speaker prepared to take a question? Mr T D LEE: At the end I will take any question, Madam Speaker. The SPEAKER: He is left with six seconds. 30 OCTOBER 2007 Page 6 of 104 Mr T D LEE: Julle het ‘n beker en heldestatus huis toe gebring en dit met julle optrede onder al die mense in hierdie land versprei. Danksy julle, is almal in Suid-Afrika vandag helde. Baie dankie. [Applous.] [You brought home a trophy and the status of heroes and spread it among all the people in this country. Thanks to you, everyone in South Africa is a hero today. Thank you. [Applause.]] Mr B W DHLAMINI: Madam Speaker, thank you very much for allowing us this special sitting in the National Assembly today, in honour of our rugby team. It is indeed a privilege to have them in our midst. Four years ago, Jake White announced to South Africa and the world, as he took over the reins of the rugby team, that his dream and goal was to lead the South African rugby team to World Cup glory in 2007. His goal wasn’t going to be an easy one to achieve and the road ahead was going to be a difficult one, but he never lost focus on what he wanted to accomplish. His methodology was to nurture and develop a bunch of highly talented young rugby players, while drawing on the experience of the old hands in his team. He made the Springboks a family, a collective, the proud team they are today. [Applause.] Throughout his four-year term as a Springbok coach, rugby also remained the ultimate political topic, a frequent target of our frustration with the pace of transformation. Six months before the 30 OCTOBER 2007 Page 7 of 104 World Cup, the hon Butana Komphela even threatened to withhold the passports of the Springbok team because the squad did not reflect transformation sufficiently. But Mr Komphela and the IFP knew very well that transformation was not the responsibility of rugby players, but rugby administrators. However, every dark cloud has a silver lining. Mr Komphela is a constant thorn in rugby’s side, but the Springboks even managed to get Mr Komphela on their side as he was seen in Paris, wearing his rugby T-shirt and cheering on the Amabokoboko. [Applause.] And this is probably the most significant achievement of this World Cup victory in France. It has shown us how powerful sport is as a nation builder. We must take note and build on this wonderful experience. As South Africa lifted the Webb Ellis Cup on 20 August 2007, at braais and gathering places across this beautiful country of ours, we South Africans, black or white, IFP or ANC, PAC or FF Plus, rich or poor, forgot our differences and stood as one to celebrate as a nation. [Applause.] As Andrew Molefe, a Sowetan reporter, so beautifully puts it: Colour didn’t matter. We hugged, cried and kissed across racial lines. Our collective blood was green. 30 OCTOBER 2007 Page 8 of 104 I would like to end with this special tribute to John Smit, Jake White and the boys by repeating the words of our leader, Prince Mangosuthu Buthelezi, who, following our dazzling World Cup victory, said: All South Africans are today justly proud of the Springboks. Quite simply, they represent the best of us. Viva, Amabokoboko, viva! You represent the best of us! [Applause.] Mr J H VAN DER MERWE: Madam Speaker, on a point of order: As this Parliament makes laws, I propose that we immediately make a law that Mr Jake White remains the coach of the Springboks. [Applause.] The SPEAKER: Hon Van der Merwe, you are trying to sneak that one in from behind. [Laughter.] Mr G T MADIKIZA: Madam Speaker, hon members and our esteemed guests, the South African national rugby team, the Springboks; the Springboks will by now have some inkling of what their achievement has meant for all South Africans. If they had any doubt, then the welcome at the airport and the subsequent street parades culminating in Cape Town yesterday would have convinced them that as a nation we are overjoyed with their victory. 30 OCTOBER 2007 Page 9 of 104 I hope to emphasise to them that when we salute their victory it is not merely a question of our celebrating a success, but also celebrating the manner in which they achieved their success. We are celebrating not just the final winning score when the whistle was blown, but also the way in which you sang the national anthem before the first whistle was blown. We celebrate the sportsmanship you displayed on and off the field. We celebrate because you have achieved a remarkable feat not only because you are talented, but because you worked hard. The dedication that went into preparing for the tournament and the obvious dedication that went into every single game was a display of a work ethic. We need to thank the coach for delivering what he promised, for keeping a cool head and for executing a strategy that was four years in the making. We also need to single out the captain for his display of quite example-driven leadership. It is important that this team understands that we are not just happy that they won rather, we, as a nation, are filled with a deep sense of pride about the way they won, to know that people abroad will think of us as a nation possessing such qualities. It is wonderful to see our boys competing on the international stage and showing the whole world the qualities that we, as a nation, 30 OCTOBER 2007 Page 10 of 104 aspired to - tenacity, teamwork, sportsmanship, humility and so much more. I want to assure this team that when South Africans hail you as heroes it is because we realise that you are human, you get hurt and bleed just like the rest of us. Many a South African child has been inspired by watching the captain getting stitches and returning to the field, or Percy strapping his knee and still kicking three vital penalties. It is your humanity that makes us admire your achievement so highly. Thank you. [Applause.] Mrs P DE LILLE: Madam Speaker, on a point of order: I think Mr Jake White must bring the cup down here so that we can touch it. I promise you, nobody will steal it. [Interjections.] Shut up! I also want to apologise that I never came to Paris to watch you beat the English Roses. I also want to thank the team, the coach and administrators. You all made us proud. When I was a little girl growing up in Beaufort West, I always wanted to play rugby - to also take on the boys like I’ve taken them on in the classroom - but then I didn’t grow big enough to make it into the Springbok team, but decided to come to Parliament and tackle them here with my mouth. 30 OCTOBER 2007 Page 11 of 104 I had the honour of watching the rugby game with Chester Williams and his family and I learned quite a lot that night. You should have seen the sense of relief on Chester Williams’ face when the final whistle blew. You have made us proud. You are the only team that was playing there not only to win, but also to play for a vision. The pressure on you must have been tremendous and yet you emerged victorious. I think over the past week that you’ve been going around the country you must have noticed it in the eyes of the supporters how we feel about our team. Whether rich or poor, black, white or coloured, they understood that you are the proof that when we stand together as a nation, we can overcome anything. [Applause.] We face so many challenges and we must savour this great moment of victory and take strength from the fact that the vision of a unified nation is attainable in South Africa. To Mr Jake White, the coach, I want to salute you for everything, and on behalf of the ID, I want to wish you a bright future. Thank you. [Applause.] Rev K R J MESHOE: Madam Speaker, it is an exceptional privilege for me to thank our national rugby team, the Springboks, for once again putting South Africa on the international map as a winning sporting 30 OCTOBER 2007 Page 12 of 104 country. Your convincing win over England in the World Cup final inspired our nation as a whole, and in particular the Proteas and Bafana Bafana. There was a time when it seemed that our Proteas were losing against the Pakistani side, but I believe it was because of your example and inspiration that they turned their game around and brought another trophy home. Springboks, your preparation for the World Cup, your training, your dedication, your willingness to give it your all, and to take the knocks, has meant so much to us as a nation. You truly behaved and conducted yourselves as professionals and ambassadors, and for that we salute you. I specifically want to congratulate the coach, Jake White, for a job well done and for silencing his critics. Sir, the fact that you led the Springboks to victory in spite of the criticism, ridicule and even condemnation that was unfairly levelled against you, makes you a very special man and one of the best rugby coaches in the world. [Applause.] If this Assembly had the right to vote for a rugby coach, then I believe an overwhelming majority would have retained you. [Applause.] Lastly, to see you all as a team, bowing before the Lord, thanking him for the victory after your splendid performance, made you God’s champions, and that has been the greatest blessing to me. You are our heroes; you are our champions; you are our esteemed ambassadors. 30 OCTOBER 2007 Page 13 of 104 May the Lord continue to keep and bless you all, including your families. Thank you. [Applause.] Dr P W A MULDER: Agb Speaker, namens die Vryheidsfront Plus, ons gelukwense en dank aan die Springbokspan. Ek het ‘n boodskap vir elke Springbok, maar kan in twee minute net by enkeles uitkom. (Translation of Afrikaans paragraph follows.) [Dr P W A MULDER: Madam Speaker, on behalf of the FF Plus, our congratulations and thanks to the Springbok team. I have a message for each and every Springbok, but will only get to a few of them in the two minutes at my disposal.] To Jake White, the coach who put up with a lot of criticism, I wish to quote the American President Lincoln, who also had to put up with a lot of criticism. He said: I do the very best I know how, the very best I can. If the end brings me out wrong, then angels swearing I was right would make no difference. If the end brings me out all right, what was said against me won’t amount to anything. Ek dink aan Percy Montgomery, wat, ek dink, die speler van die toernooi moet wees. Toe ek sien hoe hy onder die hoë skoppe van Jonny Wilkinson moes deurloop, het ek aan die woorde van die oudSpringbok, Basie Viviers, gedink, wat jare terug gesê het: 30 OCTOBER 2007 Page 14 of 104 Flyhalves wat baie skop, maak die fullbacks baie beroemd. Aan Bryan Habana, rugbyspeler van die jaar, wil ek ‘n aangepaste Vorster-storie vertel. [Applous.] Op die lughawe bestorm ‘n jong man my en vra of ek Pieter Mulder, leier van die Vryheidsfront Plus is. Hy sê hy het baie waardering vir wat ons in die Parlement doen en hy vra my vir my handtekening. Toe ek klaar is, vra hy dat hy nog ses handtekeninge wil hê! Ek is verbaas en vra hoekom. Hy sê, “Man, miskien as ek gelukkig is, kan ek ses Mulder-handtekeninge verruil vir een van Bryan Habana!” [Gelag.] Nou, dit sê iets van waar ons nou trek. (Translation of Afrikaans paragraphs follows.) [I’m thinking of Percy Montgomery, who, I think, should be the player of the tournament. When I saw how he was peppered by the high kicks of Johnny Wilkinson, I thought of the words of the former Springbok, Basie Viviers, who years ago said: Flyhalves who kick a lot, make fullbacks very famous. I want to tell Bryan Habana, rugby player of the year, an adapted Vorster story. [Applause.] A young man came rushing up to me at the airport and asked me if I was Pieter Mulder, the leader of the FF Plus. He said he had a lot of appreciation for what we are doing in Parliament and he asked for my autograph. When I had signed he said that he wanted six more autographs! I was surprised and asked why. He said, “Man, if I’m lucky, I will be able to exchange six Mulder 30 OCTOBER 2007 Page 15 of 104 autographs for one Bryan Habana autograph!” [Laughter.] Now, that says something about where we are currently.] Sir, in this Assembly we mostly disagree with each other. At times we have had serious disagreements with each other about rugby and the Springboks. However, before the final match, the FF Plus submitted a motion here, and a part of it reads thus: ... that this House conveys its support and best wishes to the Springboks and expresses the hope that the Springboks will be crowned the rugby world champions on Saturday. Madam, unbelievably, no debate followed and I am happy to tell you that the motion was accepted enthusiastically and unanimously. [Applause.] Die oorwinning van die Springbokspan en die reaksie daarop wys vir my dat gewone Suid-Afrikaners ver voor baie van ons as politici is. ‘n Merietespan met Habana as held het waarskynlik meer vir goeie verhoudinge gedoen as al die gepraat hierso. Die mense daar buite soek goedgesindheid, hulle soek sukses en nie onnodige politiek nie. Wat die toekoms van Suid-Afrika betref, wil ek vir die mense in die Huis sê, as ons die regte besluite hier neem, kan ons die atmosfeer wat tans in Suid-Afrika heers, vir altyd behou. Ek dank u en ek sê 30 OCTOBER 2007 Page 16 of 104 dankie vir die Springbokke daar bo op die gallery. (Translation of Afrikaans paragraphs follows.) [The Springbok team’s victory and the reaction to it show me that ordinary South Africans are far ahead of many of us politicians. A team selected on merit with Habana as its hero has probably done more for good relations than all the talking here. The people out there want goodwill, they want success and not unnecessary politics. Concerning the future of South Africa I want to say to the people in the House that if we take the correct decisions here, we can retain the atmosphere currently prevailing in South Africa forever. I thank you and I thank the Springboks up there in the gallery.] Ms M P MENTOR: Madam Speaker, on a point of order: Of the 12 parties here today - including my party, the ANC - eleven have fielded male speakers. Patricia de Lille was the only female speaker. The supporters of rugby are men and women. I wonder what message we are sending to the female supporters who are here, especially my daughter who is sitting over there. [Applause.] The SPEAKER: That’s not a point of order, but it is a very serious point, and I think this House, particularly the different political parties, must ponder on it. 30 OCTOBER 2007 Page 17 of 104 Mr I S MFUNDISI: Madam Speaker and hon members, we in the UCDP align ourselves with the motion to congratulate the Springbok rugby team on their magnificent performance and good sporting conduct, on and off the field. I tried my best to “green” myself, and I did it in my own way, unlike the other people. That the Springboks, after the tournament, almost swept the boards regarding awards, speaks volumes about them as sports ambassadors of this country. In spite of the whingeing that can still be heard around, the Springboks represented the nation well. We know that human beings are fastidious most of the time. That is why even in the present day there are those who still complain or who have reservations about the progress this country has made in the economy. It is not surprising that those doomsayers keep on saying it could have been done better if it was done this way or that way. The Springboks shouldn’t tear themselves apart over that. After all, Chihuahuas keep yelping at moving vehicles! We, in the UCDP, say that the team, their management and all involved have done their nation proud. As sportsmen, they all deserve our respect, recognition and support. The Springbok team has shown how it is done; they have succeeded in bringing all South Africans together as a nation. We should not allow this unity to fall away in what we say or do, hereafter. 30 OCTOBER 2007 Page 18 of 104 May the team grow from strength to strength and go to greater heights in their green and gold. Well done, Jake and “die manne” [the team.] Thank you. [Applause.] Mr R B BHOOLA: Madam Speaker, I have mentioned previously that South Africa is not just a sporting nation, but also a winning nation. On Tuesday morning our victorious Bokke arrived at the OR Tambo International Airport and were met by a huge number of supporters who have evidently crossed the apartheid divide and supported the team irrespective of the ill effects of that regime. If anything, we congratulate and thank the Bokke for a fabulous win and for bridging that divide. We have witnessed supporters throughout the country reaching out in celebration. We are extremely proud of our people who have found it in themselves to come together and unite at this auspicious moment, with the Bokke having emerged victorious. The MF has immense respect for the sport of rugby. We believe that the support it has received throughout South Africa shows that it has the potential to bring about transformation at the highest level. 30 OCTOBER 2007 Page 19 of 104 May the sensational win be a further affirmation of our enduring faith in the value of inculcating a culture of sport amongst our youth, so that one more child participating in sport is one more kept out of court. As a new democracy, we are striving to bridge many racial and gender divides. Rugby, like soccer and cricket, can help us to do that. We cherish the hope that this beautiful game of rugby will be developed and extended to the rural and disadvantaged communities. We applaud the rugby captain for his impeccable leadership. We also applaud his astoundingly heroic team. Last but not least, we thank Jake White, the South African rugby coach, who steered our team to success. Bokke, South Africa salutes you! Keep up the good spirit! This message comes from the hon Minister of Sport and Recreation in KwaZulu-Natal, Mr Amichand Rajbansi. We wish you beautiful thoughts and wonderful, great and overwhelming success for the future. Thank you. Mr M T LIKOTSI: Madam Speaker, the APC wishes to pay tribute to the Springbok rugby team for winning the International Rugby Board World Cup 2007. You have made us very proud and restored our fading dignity in this sport, guys. The APC wishes to thank our brilliant coach Jake White and his technical staff for a job well done. We thank you guys who stood the 30 OCTOBER 2007 Page 20 of 104 test of time and, to the captain John Smit, we thank you for steering this Springbok ship through troubled waters in France. Tribute should also go to the SA Rugby Board who, under difficult circumstances, soldiered on to where we are today, the deserving champions. The APC pays tribute to the nation for standing firm behind the Springboks through hell and high water. Without you supporters, it could have been difficult for the Springboks to withstand the pressure from its competitors. Keep on supporting the team at all times, win, draw or lose. We thank the President, the Deputy President and the Minister of Sport and Recreation for boosting the team’s morale in France. You displayed your leadership qualities when it was least expected. Well done! Last, but not least, we thank your spouses, partners and families for allowing you to represent the country in a tough competition. We know it was hard to see your loved ones being battered mercilessly on the playing field in France. Your support is greatly appreciated. We thank you. [Applause.] Mr L M GREEN: Madam Speaker, the FD thanks you for calling this special assembly to honour the Springboks at Parliament today. Bringing home the Web Ellis Trophy is, first of all, a victory for sport and South Africa, combining discipline, focus, talent, 30 OCTOBER 2007 Page 21 of 104 management skill and opportunity to produce a winning team. The formula for success is found in doing the basics right and to follow through with endurance, perseverance and a belief in oneself, the team and a sound set of noble virtues and values. The victorious Springbok team has shown that they possess these qualities to be crowned worthy champions of the 2007 Rugby World Cup. The victorious Springboks also lifted the Web Ellis trophy as a symbol representing a nation that believes in itself. The 2007 Rugby World Cup victory captured the imagination of a nation, reminding us of our collective success in changing a hostile political system into an open democratic system through peaceful means. The victory took us back to the historic elections in 1994, with Madiba personifying the first truly great democratic President of this land. We were also reminded of how the new South Africa inspired the Springboks’ first Rugby World Cup win in 1995, which was followed by Bafana Bafana winning the Africa Cup of Nations in 1996. The Springboks also won the highest accolades at the World Cup. Well done, John Smit, for being voted the best captain. Well done, Bryan Habana, with your eight tries, for being voted the best player, and well done, Jake White, for being voted the best coach at this tournament. [Applause.] 30 OCTOBER 2007 Page 22 of 104 We congratulate the Springboks on having won the Rugby World Cup. Go on and use your experience to mentor others. Well done, Springboks! Well done! Amandla! [Applause.] Mnr S SIMMONS: Speaker, ek kon gister nie help om ’n knop in my keel te kry toe ek die toejuiging van Kapenaars van alle rasse meegemaak het in die middestad nie. Ek wil aan die Bokke en hul afrigtingspan sê julle het meer vir nasiebou gedoen as menige politici. Ek wil dus die agb Hoofsweep van die ANC se resolusie beaam waar hy erkenning gee aan die Bokspan se bydrae tot nasiebou. (Translation of Afrikaans paragraphs follows.) [Mr S SIMMONS: Madam Speaker, yesterday I couldn’t help but get a lump in my throat when I experienced the acclamation of Capetonians of all races in the city centre. I would like to say to the Bokke and their coaching team that they have done more for nation-building than most politicians. I would, therefore, like to associate myself with the ANC Chief Whip’s resolution in which he acknowledges the Bok team’s contribution to nation-building.] Madam Speaker, many commentators have correctly pointed out that the World Cup victory gave nation-building in South Africa massive momentum. This momentum is being seriously threatened by constant 30 OCTOBER 2007 Page 23 of 104 ill-considered statements regarding transformation by the Chairperson and Deputy Chairperson of the portfolio committee on sport. If we are able to capitalise on this momentum, the Whippery of the ANC should give serious consideration to replacing the hon Khompela and hon Frolick as Chairperson and Deputy Chairperson of the Portfolio Committee on Sport and Recreation. [Interjections.] There are more than enough members within the ANC with much more appropriate credentials and, therefore, with a better insight into rugby and sports in general than these gentlemen. Mr T M MASUTHA: On a point of order: Is it parliamentary for the hon member to cast aspersions on a fellow member without going the way of a substantive motion? The SPEAKER: Hon member, there is nothing unparliamentary in what the member has said so far. Please finish up, hon member. Mr S SIMMONS: Thank you, Madam Chair. To Mr Hoskins and his council: Please ensure a nonracial rugby fraternity, one that is neither white nor black, but one that provides all the opportunities to share in the joy and pleasure of the game. Consider your colleague and Bok team manager Mr Yeye’s recent statement that our national team should not be customised for any specific race group, but that it should always reflect the best talents South Africa has to offer. [Applause.] 30 OCTOBER 2007 Page 24 of 104 The NA rejects representivity as a racial concept. I thank you. [Applause.] The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I would first of all like to acknowledge and call upon these people whose names I am going to read out to stand up so that this House will see them, since this is an auspicious moment. I call upon Mr Oregan Hoskins, who is the President of SA Rugby. [Applause.] The second one is Mr Zola Yeye, who is the manager. [Applause.] I also call on Jake White, the coach, to stand up. [Applause.] I know there are many I could have called but I am just going to call the last two, who are Percy Montgomery ... [Applause] ... and I am also going to call Bryan Habana. [Applause.] This is a memorable moment in the history of our country. Our people are united in rejoicing at the victory of the Springbok team. Whilst we celebrate the Springbok victory, I just want to give a little history so that these great guys, the sporting team, and everybody in South Africa should know where we come from. [Interjections.] I want to say, as we go on, we must build such that any victory becomes the victory of the people with their hearts and minds. 30 OCTOBER 2007 Page 25 of 104 The SPEAKER: Order! Can I stop that activity over in that corner? Please proceed, hon Chief Whip. The CHIEF WHIP OF THE MAJORITY PARTY: When we get this type of moment of victory, it must be a true victory from our hearts, souls, cities, townships and rural areas. In this we shall be saying all of you are welcome to become Springboks. We are saying to you who have won today that tomorrow you will be coaches of the future, but don’t forget other people. If we don’t do that, we will have serious problems like we had in the past. In boxing, we had two champions, a black and a white champion. We had Vicky Toweel who was a white bantamweight champion, and we had Slumber Gogotya a black bantamweight champion in the past. Vicky Toweel went on to win the world championship. David Gogotya was not allowed to fight then. One day it was arranged that these two champions would do some sparring in a corner in a gym. Funnily enough, they sparred and Gogotya dropped the world champion. There was silence and the government said that this fact must not be published. We also had Jacob Ntuli, who left South Africa, who was a good flyweight champion. He left South Africa because he could not see his way forward. He went to Britain and won the British Empire Championship. That man could not come back to South Africa to fight 30 OCTOBER 2007 Page 26 of 104 in our midst. He was kept in England because apartheid could not accommodate him. Let us take the case of tennis. Tennis is dead in South Africa nowadays. We no longer speak of Ferreira and others. It is dead and it can only survive if all our people, all of us, are prepared to develop everybody in South Africa in our sporting activities. [Applause.] This is to the Springboks: This is not a political speech, but to make you think, so that you are better sportsmen of tomorrow and tell the true history and you can say not that way, but this way. Whilst we celebrate we must also not forget that, last week, Bafana Bafana won the Council of Southern Africa Football Associations Cup, too. [Applause.] To the Springboks, we say: Halala halala [well done], to you. We also say carry this with pride, but remembering that South Africa needs you not only as a particular Springbok, but as all the Springboks in South Africa. I thank you. [Applause.] The SPEAKER: That concludes the debate and I take it that there are no objections to the motion and it is, therefore, agreed to. I will now suspend the proceedings until 14:00 when the Minister of Finance will deliver the Medium Term Budget Policy Statement. Debate concluded. 30 OCTOBER 2007 Page 27 of 104 Motion agreed to. Business suspended at 12:45 and resumed at 14:07. MEDIUM-TERM BUDGET POLICY STATEMENT ADJUSTMENTS APPROPRIATION BILL (Introduction) The MINISTER OF FINANCE: Madam Speaker, hon members, our dear friends in the House and at home, in tabling the 2007 Medium-Term Budget Policy Statement, we can affirm that economic growth and investment in public services are steadily bringing a better life to millions of our people. We can look back with pride on the course we chose in implementing our Reconstruction and Development Programme, because we can see the fruit of the new constitutional order we built; of the transformation of policy and service delivery we undertook; of the tough decisions we made and the dedicated efforts of South Africans from all walks of life who have contributed to our social progress and economic renewal. Today is better than yesterday, and tomorrow will be even better than today. [Applause.] We can assert this confidently because our progress is recorded and measured, and the facts speak louder than any rhetorical flourishes. 30 OCTOBER 2007 Page 28 of 104 Yet the message of today’s Budget Statement is not that we have reached our destination or that victory can already be claimed; it is that we have advanced to new challenges and another phase in our transformation journey still lies ahead. The 2007 Community Survey released by Statistics SA last week tells a story of steady progress in public service delivery. In 1996 just over half our people did not have water in their homes. Today, over 88% of our people have access to piped water. In 1996, only 64% of our people lived in formal houses. Today, over 70% enjoy this right. In almost every area of public service delivery, from access to schooling and health care to refuse removal; from electrification to access to computers; from roads and streetlights to sports facilities; from telecommunication services to public transport, we can point to steady progress in living standards. Development is also about access to jobs. It’s about security of income and redressing past inequalities. We can show measured quantitative progress on these fronts, although we clearly still have more work to do in these dimensions of reconstruction and development. So, in tabling the 2007 Medium-Term Budget Policy Statement, we also reaffirm our commitment to building a stronger economy, faster job creation, social and broadening participation and economic opportunities for deepening all. South the quality Africa is of now 30 OCTOBER 2007 Page 29 of 104 entering its 9th year of the longest economic upswing since the national accounts have been recorded in this country. National income has risen by 22% per person since 1999, with increases across all income groups. Employment is rising faster than at any point since the 1960s. Fixed investment has increased sharply since 2002, by over 10% a year. These are, indeed, substantial steps towards our medium-term economic goals - growth of 6% a year or more, an unemployment rate of below 14% by 2014 and an aggregate poverty rate half that recorded in 2004. Our commitment is not just an aspiration towards these targets. We intend to measure progress, step by step, in sharing the democratic dividend among all of our people. We need to understand that the present buoyancy in our economic growth is partly a consequence of favourable global economic conditions. High commodity prices, low interest rates and strong international demand have contributed to the momentum of our income growth and to financing investment through capital inflows. We need to welcome and take advantage of the opportunities of global growth, but we then also need to distinguish temporary prosperity from structural progress. We need to ensure that windfall gains are wisely invested and surplus resources are set aside for when markets turn against us in times ahead. 30 OCTOBER 2007 Page 30 of 104 On the domestic front, our economy remains strong, buoyed by rising investment in productive capacity, higher employment and incomes, strong consumer demand and healthy foreign capital inflows. Last week’s announcement of a R37 billion investment by the Industrial and Commercial Bank of China in one of our leading banks indicates that international confidence in our economy is high, and perhaps also signals a new place for Africa in the changing patterns of trade and finance flows in the 21st century. So the healthy economic outlook that we are able to table today is of interest not just to our own people, but also in our region and the wider world. We expect the South African economy to grow by 4,9% this year and 4,5% in 2008, before returning to about 5% in the year 2009 and 2010. The outlook is somewhat less positive than it appeared in February. Financial crises in developed markets, global imbalances, high food and oil prices internationally and slowing growth in the USA and other developed countries do cloud the sky. The advent of the subprime mortgage crisis in the US is further evidence of the interconnectedness of our world, and also a reminder of the fact that we must build up our cushion against global volatility. Our approach to international finance and monetary management has meant an accumulation of over US$30 billion in foreign reserves with the South African Reserve Bank, which in itself is a considerable 30 OCTOBER 2007 strength and Page 31 of 104 also a contribution to greater exchange rate and interest rate stability. In the fiscal stance outlined today we indicate how public finances are also contributing to the resilience of the economy in the context of both international uncertainty and the future investment requirements of our own economy. In regard to inflation and capacity utilisation we are mindful that more rapid economic progress has itself brought new dimensions to the struggle. globally, and In the I want context to of increasing emphasise that oil these and are food prices global price increases, rising inflation has re-emerged as a policy concern. Our expanding investment spending has run well ahead of our ability to save, contributing to an increased current account deficit on the balance of payments. productivity further and This highlights industrial acceleration in the importance competitiveness growth and as employment a of improved condition creation over for the decade ahead. The recent increase in CPIX inflation to 6,7% has necessitated steps to curb inflation and the Reserve Bank, on the recommendations of the monetary policy committee, has implemented those steps. Global price trends present an inflation challenge for all economies at this time. Food and commodity prices have increased sharply in recent years. More recently, the depreciation of the US dollar and 30 OCTOBER 2007 Page 32 of 104 continued market pressures have increased oil prices to over US$90 per barrel, an increase of 23% in just the last two months. We must pause and consider the impact of that on an economy like ours, where so many of our people live far from where they work and where the bulk of South Africans are dependent on hydrocarbon fuels to get around. A 23% increase in the global price clearly has a very profound impact. The global trends have interacted with our own rapid economic growth, agricultural supply conditions, broader supply pressures and skills deficits to push the CPIX above the inflation target this year. The rate of capacity utilisation in the economy is very high and in some sectors demand pressures are generating higher prices. These price pressures will not abate quickly, yet addressing them and returning to within the inflation target range is important for our long-term growth. Higher inflation reduces our competitiveness, undermines the real income of rich and poor households alike and creates greater uncertainty for the investment decisions of firms. The task of bringing down inflation cannot just be left to the Reserve Bank. Robust investment in capacity is underway and this will reduce some of the price pressures over time. All actors in the economy have a role to play. In particular, an improvement in the fiscal balance will help to moderate inflation and create space for stronger private sector economic activity. 30 OCTOBER 2007 Page 33 of 104 Because we are so determined to make tomorrow better than today, we must carefully analyse our present pattern of growth. For the next two years offset somewhat by investment domestic slower rising has growth private not production been or and household public matched in in by savings. spending investment. a Our commensurate Rising will increased increase inflation be and a in high current account deficit are both signs of robust economic growth and that we run the risk of not being able to finance that growth in the future. In order to address these imbalances, we need to sharpen our microeconomic policy instruments through lowering the costs of doing business, stepping up our efforts in skills development, increasing trade competitiveness and investing in infrastructure that will support our economic expansion. To grow rapidly and to sustain that growth, we must increase exports for they are the source over time of the revenue that must pay for our imports. The prices of gold, platinum and other commodities have risen sharply in recent years and this has helped us, but we need to take further and more aggressive steps to diversify our trade capacity. Because of its impact on productivity and innovation, trade policy has a central place in promoting competitiveness. Our approach needs to ensure that competition is fostered through tariff simplification 30 OCTOBER 2007 Page 34 of 104 and reform and that incentives for investment and for research and development are appropriately targeted and effectively administered. Public accountability is critical to the success of such initiatives, so we will seek to publish appropriate reviews and assessments of our progress. In addition, both industrial and labour market policies must focus on raising the labour intensity of the economy so that we can create jobs at an even faster pace. Greater progress in channelling young people into jobs has to be central to the policy objectives over the coming years. In all of these matters, we face intense international competition. A recent survey of 600 chief executives of multinational companies said a shortage of qualified staff ranked as their biggest concern. No, this survey was not conducted in South Africa. The skills shortage complained about is in Asia. Yes, a region with almost half the world’s population is experiencing severe skills constraints. China is battling with severe shortages of lawyers – Gerda, there’s an opportunity. Major Indian companies are complaining about a shortage of IT professionals contrary to common wisdom about the IT epicentre of the world being in India. Everywhere companies are experiencing difficulty managerial expertise. in finding industrial, commercial and 30 OCTOBER 2007 Page 35 of 104 Last week, the European Union announced its intention to recruit 20 million skilled foreigners over the next two decades. I believe that this kind of parasitic conduct of nations is wrong. [Applause.] The point we need to debate about South Africa’s skills shortages is not whether they exist or not, but how we should confront the challenge and deal with it, recognising that everywhere else in the world they are focused on the same thing. We will continue to place education and skills development at the top of our budget priority list. Building a learning society is partly about improving the quality and content of what goes on in the classroom, but it is also about investment by businesses and their employees, about communities taking ownership and responsibility for their schools and about how families communicate values and capabilities to their children. I am aware that the negotiations with educator unions on the occupation-specific dispensation have encountered some difficulties. We all know that a better career progression system is needed to retain good teachers and so efforts to unblock these difficulties must enjoy our full support. I think it is appropriate in this context that this House pledges support for Minister Pandor in this endeavour. 30 OCTOBER 2007 Page 36 of 104 The area of skills development is clearly one in which we will make more progress if we address the institutional and financial barriers that stand in the way of aligning resources with needs. I share with the Minister of Labour a disappointment that financial management has been poor in several of our sector education and training authorities. At the end of last year, our Setas held over R3,7 billion in cash reserves – effectively levy income that employers had not utilised to reimburse training expenses or skills development projects that had not yet been implemented. Other parts of our higher and further education system that are ready to expand enrolment and step up their contribution to human investment do not have the financial resources to do so. This surely cannot be correct, and so we have to explore options for improving the integration of our education and training financing arrangements and we must do this together. For the past five years, public spending has increased by an annual average of 9,4% in real terms. That is 9,4% above inflation. If a comparison is made with expenditure in 1995, it shows that public spending has doubled in real terms since then. Higher spending has been financed by falling debt service costs and rising tax revenues. We must take into account that some of the growth in our revenue is cyclical, related to high commodity prices and the consumption boom. 30 OCTOBER 2007 Page 37 of 104 It is incumbent upon us to manage these cyclical revenues differently. In this Medium-Term Budget Policy Statement, we introduce the concept of a structural budget balance. This scares Minister Thoko Didiza, who thinks that the word ``structure’’ does not belong there. So, sometimes it is also referred to as a cyclically adjusted budget balance. The structural balance attempts to calculate the effect of cyclical revenues on our budget balance. It is not about structural adjustment, if that is what you want us to say and agree to. This addition to our box of tools allows us to ensure that public spending is protected, even if conditions worsen. Revenue that is cyclical must be treated differently. To do otherwise, we admit, would be reckless. Some of the cyclical revenue should be spent on things that raise our ability to grow faster in the long term - things such as infrastructure, education and institutional capacity. It also makes sense to use some of that cyclical revenue to pay off debt or to save for future needs. With this in mind, government is proposing to budget for a surplus of about 0,6% of the GDP for the next three years, so that when economic conditions deteriorate we have the resources to cushion the economy. When cyclical revenues are removed from our calculations, 30 OCTOBER 2007 Page 38 of 104 the structural budget balance indicates a deficit that will rise to about 1% of the GDP in the fiscal year ending on 31 March 2011. The tax burden on the economy has risen since 2004, mainly due to the cyclical windfalls accrued as a result of higher consumption and commodity prices. Rising employment and higher salary increases have also led to a rise in tax revenue. This year, we project to collect about R8,5 billion more than what we budgeted in February, mainly due to higher inflation and related salary increases. I just want to remind this House that in previous years we have always collected substantially more. This year we are in the R8,5 billion zone. We expect that over the medium term, main budget revenue will be about 27,5% of GDP. We reaffirm the principle that cyclical revenues should not be used to provide permanent tax relief. However, proceeds from better administration and tax compliance and the broadening of the tax base may be used to lower the tax burden, as we have done in the past. Apart from the Medium-Term Budget Policy Statement we are also going to table an Adjustments Appropriation Bill today. We have tabled two adjustments appropriations this year. The special adjustments budget tabled in September 2007 dealt with urgent transfers for the following items: The sum of R1,9 billion brought forward from 200809 to finance the construction of stadiums for 2010; R2,5 billion 30 OCTOBER 2007 Page 39 of 104 for the pebble bed modular reactor project; R700 million for the Land Bank; R222 million for Denel; R45 million for Alexkor; R500 million to Sentech for wireless broadband infrastructure. In the Adjustments Appropriation Bill that we table today, we include details of amounts rolled over from last year’s budget as well as unforeseen and unavoidable expenditure. These include an amount of R654 million for expenditure resulting from fires, floods and other adverse weather conditions – I think we all recall what happened to grazing land and forests a few months ago - R400 million for the prevention and treatment of multi-drug-resistant tuberculosis; R744 million to support the restructuring of SAA; R1,9 billion to accommodate the higher-than-budgeted costs of the 2007 salary agreement. Taking into account about R5 billion in underspending, total spending amounts to R542 billion - about 15,4% more than expenditure in the past fiscal year. The revised estimate for the budget surplus is R10,8 billion, which is marginally higher than the R10,7 billion projected in February. The proposed budget framework for the next three years makes provision for about R81 billion of additional allocations, allowing for spending on services to rise by 6,4% a year in real terms over the next three years. Of this amount, about R15 billion goes towards funding the higher cost of the 2007 Public Service salary agreement. 30 OCTOBER 2007 Page 40 of 104 A further R2 billion goes towards the occupation-specific dispensations proposed for educators and the envisaged dispensation for social workers. In 2006, the budget provided R4,6 billion for occupation-specific adjustments in the health sector. About R4,3 billion over the MTEF period will go towards compensating pension and social grant beneficiaries for rising food prices and other cost-of-living increases, so that we can maintain the value of social grants. Of the remaining amounts, municipalities receive about R12,6 billion to accelerate the pace of delivery of water, sanitation and electricity connections. These resources also cover the additional costs of providing poor households with free basic services. Over the next three years, infrastructure transfers to municipalities total R57 billion, reflecting a firm commitment to sharing the fruits of economic development. This includes a further R2 billion for public transport infrastructure and systems. Provinces receive about R36 billion, mainly for targeted interventions to improve the quality of schooling, health care and welfare services. The proposed budget framework provides for growth in the provincial equitable share of 11,9% a year over the next three years. The new estimates of provincial population numbers are taken into account in the allocation of these funds. 30 OCTOBER 2007 Page 41 of 104 Several conditional grant allocations are revised upwards. A further R2,1 billion goes towards funding the comprehensive HIV and Aids programme. Early learning opportunities and the expansion of Grade R are also prioritised, because these are programmes that improve outcomes in later years. Provision will be made for more places for learners with disabilities, who therefore have particular needs, in our schooling system. The School Nutrition Programme receives a further addition to take higher food prices into account and to feed more children for the full school year. Earlier this year, the Minister of Education released a report detailing the state of school facilities. It illustrates considerable progress over the past decade, but also signals that more needs to be done. Whereas in 1996, 51% of schools were overcrowded, this figure has now dropped to 24%. The number of schools without electricity has decreased from nearly 14 000 to 4 300. [Applause.] Schools without adequate water have declined from 8 800 to 3 150. The number of schools with access to computers has increased significantly, but there are still 17 000 without them. With these challenges in mind, a further R2,7 billion is proposed for school building and maintenance over the MTEF period. [Applause.] National departments receive about R33 billion of the proposed additional expenditure. Much of this will go to economic infrastructure and services, including a substantial rise in funding for industrial development incentives. 30 OCTOBER 2007 Page 42 of 104 We will also increase spending on fighting crime, improving service delivery in the Department of Home Affairs and expanding labourbased employment programmes. Higher education will benefit from additional allocations in recognition of rising student numbers and the need to boost financial assistance to students. The 2008 budget framework favours programmes that induce efficiency savings in other areas of spending - for example, removing nonroadworthy vehicles, reducing road accidents and taking pressure off our emergency services and trauma health care services. Increasing the number of agricultural extension workers enhances the prospects of successful land reform projects. Allocating resources to the right areas is only half the battle. The 2008 budget framework raises the bar in the quest to improve value for money. In line with the Presidency’s Monitoring and Evaluation Framework, the Treasury has issued guidelines for the development of performance measures related to each programme. The intention is to assist Parliament and the public to hold departments to account for the delivery of key outputs. Therefore, let us look beyond how much there is to what that money buys. As part of finalising the 2008 MTEF, national departments are asked to make R2,3 billion worth of savings as part of an efficiency programme. National departments are asked to improve their management of expenditure on travel, entertainment, marketing, 30 OCTOBER 2007 Page 43 of 104 catering, events and consultants. [Applause.] It is anticipated that provincial treasuries will adopt a similar approach in the finalisation of their budgets. These savings will be reprioritised towards frontline services. Madam Speaker, I pause for applause at this stage. [Applause]. Thank you, it is welcomed; it was so spontaneous, it is really beautiful! This Budget Framework and the related economic policy proposals provide a clear platform for investment in the infrastructure and services that are likely to raise our growth path towards 6%. About R20 billion of the additional amounts go towards capital formation, signalling a continuation of the drive towards broadening access to basic services and increasing economic efficiency. Allocations for targeted salary increases are related to performance systems presently being implemented in the Public Service. For fear of being very unpopular, let me say that this excludes Members of Parliament. On the basis of sound fiscal and economic policies, we have made significant progress in improving the quality of life of all South Africans, policies particularly in place implementation and capacity those living through and in steady monitoring poverty. With improvements service the in delivery, right building we can accelerate progress in transforming the lives of all South Africans. 30 OCTOBER 2007 Page 44 of 104 Madam Speaker, ten years ago this month, the South African Revenue Service Act was promulgated to give effect to a key element of our public finance reforms – the creation of an administratively independent, efficient and effective revenue and customs authority that would be able to fund our spending objectives in a sustainable way. Since those chaotic days, the Revenue Service has evolved into an organisation respected and admired across the world. [Applause.] The SA Revenue Service has been at the centre of a series of tax administrative and organisational reforms that have completely changed our relationship with taxpayers. A key element of the social contract between government and citizens is that paying one’s fair share of taxes is essential to all of our futures and that revenue collection is as much about a better service to the public as it is about enforcement. It is this virtuous circle which lies at the heart of our fiscal policy and at the centre of Sars’ unyielding drive to promote compliance by providing ever higher service levels, greater simplicity and ease of access to honest taxpayers. Madam Speaker, none of us needs reminding of the unrelenting vigour, dedication and passion of Commissioner Pravin Gordhan and the 15 000 men and women who work for the SA Revenue Service. [Applause.] Today, as we congratulate the management and staff of Sars for ten years of dedicated service, we must also thank South African 30 OCTOBER 2007 Page 45 of 104 taxpayers – individuals and companies – for their contributions to our nation’s development. The Commissioner has asked me to mention that tomorrow is the deadline for tax returns. [Laughter.] Madam Speaker, we are close to the highpoint of our year as the host of the G20. In just three weeks, we host the Finance Ministers and Central Bank Governors from the 19 systemically most significant economies and the European Union as the 20th party just outside of Cape Town. This meeting follows a series of consultations dealing with fiscal space, the impact of commodity prices and reform to the World Bank and the International Monetary Fund. We have also used our chairmanship of the G20 to bring African finance ministries into a dialogue with more developed countries on issues of development. I would like to thank colleagues in Cabinet, and in particular members of the Ministers’ Committee on the Budget, for their role in crafting this policy statement. I would also like to say thank you to the staff of Statistics South Africa, the Ministry of Finance and the National Treasury. Madam Speaker, I hereby table the 2007-08 Adjustments Appropriation Bill, the Adjusted Estimates of National Revenue, 2007 and the Medium-Term Budget Policy Statement for consideration by Parliament. I thank you. [Applause.] 30 OCTOBER 2007 Page 46 of 104 The SPEAKER: The Medium-Term Budget Policy Statement will be referred to the Joint Budget Committee and the Portfolio Committee on Finance for consideration in accordance with their respective mandates. The Adjustment Appropriation Bill, together with related papers, will be referred to the Portfolio Committee on Finance for consideration and report. REVENUE LAWS AMENDMENT BILL SECURITIES TRANSFER TAX BILL (Introduction) The MINISTER OF FINANCE: Madam Speaker, it gives me great pleasure to introduce the Revenue Laws Amendment Bill and the Securities Transfer Tax Bill for this year. These Bills contain the second instalment of tax announcements contained in the annual February 2007 Budget address to the nation. Given the complex nature of the South African economy, these Bills cover an expansive range of tax topics. However, despite these disparate topics, government’s goals for the tax system remain clear and consistent – to achieve equity, certainty, efficiency and simplicity. These all call for a broadening of the tax base and, where possible, a reduction in the complexity of the tax code. 30 OCTOBER 2007 Page 47 of 104 However, it must be stressed that unintended loopholes exploited by some taxpayers and their highly sophisticated advisers will not be tolerated. The additional revenue stemming from closing these loopholes will provide scope for further tax reforms or funds available for critical expenditure priorities and lower tax rates where deemed appropriate. In terms of business taxation the main focus of the Bills is the Secondary Tax on Companies - STC. The STC rate will be reduced from 12,5% to 10%. The rate reduction comes with the closing of significant loopholes that have emerged in the market place. A small group of taxpayers have sought to disguise otherwise taxable sales and taxable dividends through a variety of means. Many of these schemes seek to artificially classify both sets of transactions as a tax-free return of capital or a set tax-free intra group dividends. While many of these schemes are remote to all but a very elite set of tax experts, the costs of these schemes should not be ignored. We understand that some private equity fund managers are very active in this regard and there is an international outcry, because in the UK they found that private equity fund managers pay less tax than domestic workers, for instance. 30 OCTOBER 2007 Page 48 of 104 This drive to close loopholes should, however, not be perceived as an anti-business attitude on the part of government. The set of Bills presented today contain a range of measures designed to support the growth of business. Shares held by taxpayers for at least three years will now automatically receive beneficial capital gains tax rates. For individuals with savings held directly in the form of shares, this change will mean that there will be certainty that the tax from growth from these shares will be limited to a 10% capital gains rate. Other provisions in the Bills presented today seek to minimise the tax impact of mergers and acquisitions, many of which are important for our country’s goal of transformation. Finally, in order to encourage infrastructure development, the Bills contain depreciation tax relief for new and used rolling stock, railways port infrastructure, environmental equipment and commercial buildings. There are also a few special situations. As strange as it may seem to some our tax system does have a sympathetic heart. Beyond the broad-based relief in income tax rates granted earlier this year, certain situations call for special assistance. Of particular note is the taxation of sporting bodies. 30 OCTOBER 2007 Page 49 of 104 Our national and provincial sports organisations contain both professional and amateur sports divisions. Our children in amateur sports today need support so that they can become our future stars in rugby, soccer and cricket, or at least so that they can enjoy themselves along the way. Under the proposed amendments, professional sports organisations can now obtain tax deductions for funding amateur sports development directly. [Applause.] Since most funding for amateur sports today is derived this way, the deduction should play a very significant role. On a different note, certain workers face the risk of physical injury or even death in their jobs. In order to compensate them for this danger of doing such work, government presently provides taxfree compensation in terms of the Compensation for Occupational Injuries and Diseases Act of 1993. However, some employers provide additional death and injury benefits that are currently subject to tax. The proposed amendments allow for tax-free treatment for up to R300 000 for these additional benefits. Our policemen and women who face a daily risk in protecting our society will be major beneficiaries in these proposals as well. [Applause.] Lastly, many of our poorer citizens lack ready access to banking facilities, especially in the rural areas. Earlier this year, the National Treasury introduced the Co-operative Banks Bill so that 30 OCTOBER 2007 Page 50 of 104 communities can form their own associations for everyday savings and loans. We are proposing an amendment that complements this effort by providing small business tax relief for co-operative banks. This relief spares these co-operative banks from a flat 29% tax charge. Co-operative banks will now be eligible for tax exemption for up to R43 000 of their annual net income, a 10% charge for income up to R300 000 and 29% only thereafter. [Applause.] The second set of Bills deals with securities transfer taxes on shares. It is important to note that Securities Transfers Tax Bills do not represent the new tax. These Bills merely combine preexisting stamp duties on unlisted shares and pre-existing uncertificated security taxes on listed shares. The new regime simplifies many archaic rules and streamlines exemptions. Most taxpayers should benefit from the reduction in compliance costs associated with these changes. Once again, Madam Speaker, I would like to thank the chairperson of the Portfolio Committee on Finance, the hon Nhlanhla Nene, for his leadership and the members of the portfolio committee for their constructive role in the process. I would like to say the process because whilst there is a belief that Parliament does not amend money Bills as any member of the 30 OCTOBER 2007 Page 51 of 104 Portfolio Committee on Finance would be able to testify, hon Cronin, they have been through this, they have heard hearings, they have submitted to us the amendments that are necessary and these changes in the Bills before this House reflect the views and wisdom of the Portfolio Committee on Finance. [Applause.] So, Madam Speaker, I hereby table the Revenue Laws Amendment Bill, 2007, and the Securities Transfer Tax Bill 2007. Thank you very much. [Applause.] Bills referred to the Portfolio Committee on Finance for consideration and report. NOTICE OF MOTION Dr J T DELPORT: Deputy Speaker, I wish to give notice that I shall move: That Parliament debates the ethical standards of conduct that judicial officers ought to adhere to and the role of the Judicial Services Commission in this regard. CONGRATULATIONS TO NATIONAL CRICKET TEAM (Draft Resolution) 30 OCTOBER 2007 Page 52 of 104 The CHIEF WHIP OF THE MAJORITY PARTY: Deputy Speaker, I move without notice: That the House - (1) notes the excellent performance by our national cricket team, the Proteas, in Pakistan on Monday, 29 October 2007; (2) acknowledges that the magnificent performance of the cricket team in the tournament demonstrates the hard work by the team and management; and (3) congratulates the Proteas on winning the test series and the one day tournament in Pakistan. Agreed to. CONGRATULATIONS TO BAFANA BAFANA (Draft Resolution) Mr M J ELLIS: Thank you, Madam Deputy Speaker. I move without notice: That the House – 30 OCTOBER 2007 (1) Page 53 of 104 congratulates Bafana Bafana on their 4-3 victory over Zambia to win the COSAFA Castle Cup in Bloemfontein on Wednesday, 24 October 2007; (2) notes that this win denied defending champions Zambia winning the Cup a record fourth time; (3) recognises that this was only the second success in 10 years for South Africa in this annual Southern African Championship; (4) further recognises that this win means that the trophy will remain in South African hands, as this final was the last match to have been played in the history of the COSAFA Castle Cup; and (5) congratulates the team and coach Carlos Parreira on this win and the boost it has given to footballers across the country. Agreed to. CORRECTION WEEK (Member’s Statement) Mrs L S CHIKUNGA (ANC): Madam Deputy Speaker, Deputy President, Members of the Executive and hon members, we welcome the progress 30 OCTOBER 2007 Page 54 of 104 made by the Department of Correctional Services during Correction Week from 15-19 October 2007. It is one of the main highlights on the Department of Correctional Services’ calendar and aims to create awareness around the various correctional programmes driven by the department and its partners to break the cycle of crime. The focus week of Correctional Services seeks to inculcate knowledge and understanding of the department’s core mandate of safe custody, rehabilitation and social reintegration of offenders, whilst also encouraging meaningful public participation and involvement in the implementation of the mandate. Some members from this House attended the week’s activities and as such were exposed to the celebration of best practices, model partnerships and successes in ensuring safe custody, the progress made in rolling out the implementation of the White Paper in centres of excellence and pockets of best practices in social reintegration programmes. We acknowledge the strides made by the Department of Correctional Services under the stewardship of Minister Balfour. Most of us are still talking about Correction Week and as the ANC we urge all hon members to participate in turning around the many challenges facing the country’s correctional system and make their mark in building a safer, more secure and prosperous South Africa, 30 OCTOBER 2007 Page 55 of 104 where all can enjoy a better quality of life. I thank you. [Applause.] AGENDA TO TOPPLE DA-LED MULTIPARTY GOVERNMENT IN WESTERN CAPE (Member’s Statement) The LEADER OF THE OPPOSITION (DA): Madam Deputy Speaker, the ANC is currently engaged in its tenth attempt to topple the democratically elected multiparty government in the Western Cape. They have, obviously, not learnt that in a democracy, you must accept the will of the voters. It is an outrage for the Western Cape Premier, Ebrahim Rasool, and the Western Cape Provincial Police Commissioner, Mzwandile Petros, to be abusing resources of state to pursue their party-political agenda against the DA-led multiparty government. Commissioner Petros has shown his political bias by continuously allowing evidence that is part of a police investigation to be selectively leaked to the media. It also seems that he reports on almost a daily basis to Premier Rasool on the status of investigations into the Premier’s political opponents, which is a clear conflict of interest and undermines the constitutional requirements of a politically neutral police service. The real outrage lies in this: Why have Commissioner Petros, Premier Rasool and Safety and Security Minister Nqakula not taken any action against Badih Chaaban, the councillor accused of making death 30 OCTOBER 2007 Page 56 of 104 threats, offering bribes and having links to the criminal underworld? The ANC will, clearly, go all out to protect this man ... [Time expired.] NEGOTIATIONS ON TEACHERS’ SALARIES (Member’s Statement) Mr A M MPONTSHANE (IFP): Madam Deputy Speaker, the IFP has noted with some concern that the negotiation process on teachers’ salaries seems to have hit new difficulties, with at least three major unions rejecting government’s occupation-specific dispensation document. Naptosa, the National Professional Teachers’ Organisation of SA, called the document “unworkable” and has called for negotiations to be placed on hold, while Sadtu, the SA Democratic Teachers’ Union, called it “a sham”. It does appear strange that it would allegedly, take a new teacher about 57 years to be eligible for the maximum proposed salary. Surely, if this is true, this proposal must be deemed unworkable and unrealistic. The IFP recalls with concern the negative effects on learners of the recent Public Service strike. It is clear that if common ground cannot be found between teachers and the department, the potential for further disruption in the education sector cannot be discounted. 30 OCTOBER 2007 Page 57 of 104 It is, therefore, of the utmost importance that the unions and the department go back to the drawing board to come up with a solution that will benefit both, by improving the salaries of teachers whilst improving their performance. I thank you. BUILDING OF PEDESTRIAN BRIDGE AT DE DOORNS APPLAUDED (Member’s Statement) Mnu M M DIKGACWI(ANC): Sekela-Somlomo, siqwalasela ngemigcobo nochulumanco olungazenzisiyo ibhulorho esandula ukwakhiwa eDe Doorns. Ngenxa yeentsokolo zezopolitiko wawungekho umhlaba owawubekelwe bucala kulungiselelwa ukwakhiwa kwezakhiwo ezinje ngale bhulorho. Sikwaqaphela nokuba imali engangezigidi ezinga-20 eerandi esetyenzisiweyo ukwakha le bhulorho yenze ukuba kuvuleke amathuba engqesho kuninzi lwabantu baseDe Doorns. Le bhulorho iza kucutha inani leengozi, njengoko abantu abaninzi bebetshayiswa ziimoto xa bebuya emsebenzini benqumla indlela besiya kumatyotyombe abo, abanye bevela kufolela imisebenzi. Singabahlali baseNorth Side nabaseSouth Side ku-N1 siyabulela kumasipala norhulumente wephondo bebambisene ne-SA National Road Agency Ltd ngokuqinisekisa ukuba amathuba emisebenzi ayavuleka, 30 OCTOBER 2007 Page 58 of 104 kwanokuba abantu baza kusinda ekutshayisweni ziimoto. Kwakhona abantu baza kukwazi ukuya ezikliniki, ezikolweni nasezivenkileni ezikwelinye icala lika-N1. Siyabakhuthaza nabanye abaneenjongo zokuphuhlisa kulaa mmandla ukuba benjenjalo. Abahlali balaa ndawo basezintwaleni, bafuna ukuhlanjululwa ngamabhakethi eJeyes Fluid. Yizani kutyala imali eDe Doorns. Enkosi. (Translation of isiXhosa member’s statement follows.) [Mr M M DIKGACWI (ANC): Madam Deputy Speaker, we note with joy and genuine happiness the bridge that has just been erected at De Doorns. Due to political pressures, there was no land that had been earmarked for such a bridge. We also note that the amount of R20 million that was used to build this bridge created job opportunities for many of the people of De Doorns. This bridge will reduce the number of accidents, because a number of people used to be knocked down by vehicles when going to and coming from work, having to cross the highway on the way back to their shacks, some coming from seeking jobs. As residents of North Side and South Side, along the N1, we would like to thank the municipality and the provincial government, in collaboration with the SA National Road Agency Ltd, for ensuring that job opportunities were created and that people will no longer 30 OCTOBER 2007 Page 59 of 104 be knocked down by vehicles. Furthermore, the people will now be able to go to the clinics, schools and shops on the other side of the N1. We encourage others who intend to develop that area to do likewise. The residents of that area have problems with an infestation of fleas. They need to cleanse the area using buckets of Jeyes Fluid. Come and invest at De Doorns. Thank you.] MALARIA VACCINE (Member’s Statement) Mrs C DUDLEY (ACDP): Deputy Speaker, the ACDP welcomes breakthrough research in the United States in developing a vaccine against malaria. We are encouraged by news of an American scientist leading an international team of researchers to produce a vaccine against malaria. As Africans we all know the terrible toll taken by malaria every year, with an especially heavy toll on infants. Whilst we are pleased that companies are establishing industries in malarial areas and are endeavouring to protect their staff through the use of DDT, we, however, recognise that DDT has its own negative effects and is not the ultimate solution. 30 OCTOBER 2007 Page 60 of 104 So it is with real hope that the ACDP recognises the work being carried out by a biotechnology firm in Maryland, using malarial mosquitoes themselves to manufacture a vaccine against malaria. Although there is a long way to go before they will be able to license it and deploy it as an effective eradication method, this vaccine brings hope. It promises the birth of economy and prosperity in ravaged areas, and could save lives. We look forward also to developments in this regard within South Africa’s science and technology sector. Thank you. MURDER OF THREE FEMALE LAUNDRY WORKERS (Member’s Statement) Ms D M RAMODIBE (ANC): Madam Deputy Speaker, on behalf of the ANC I rise to bring to the attention of the House and share with you and the nation at large, one of the challenges faced by our new democracy, as the country advances towards transforming itself into a nonracial, nonsexist, united and democratic society. In the constituency where I am deployed in Vanderbijlpark near Vereeniging, I have been following up a case of three female workers, namely Joyce Lesito (28), Constance Moeletsi (30) and Victoria Ndweni (30). In 2006 they were allegedly placed into a dry 30 OCTOBER 2007 Page 61 of 104 cleaning washing machine that contained chemicals. They were later found dead. The administration of justice should be accessible to all the people. It must be credible and legitimate. The case against the accused dragged on in the Vereeniging Magistrate’s Court and was delayed by bail applications for the perpetrators. They were later granted bail, despite public objections and demonstrations by the ANC Women’s League and the alliance partners. The case has now been put in abeyance or suspended, pending further investigation. It was alleged that there was not enough evidence against the accused. I call on the Minister for Justice and Constitutional Development to investigate this very serious matter. I thank you. SLOW PACE OF LAND REDISTRIBUTION (Member’s Statement) Mr M V NGEMA (Nadeco): Madam Speaker, poverty is the parent of revolution and crime. This is an observation that was made by academic and philosopher, Aristotle. It was this statement that came to mind when the media report seen over the weekend stated that less than 5% of agricultural land has been transferred into black hands since 1994. 30 OCTOBER 2007 Page 62 of 104 The issue of land will continue to open wounds for the people of this country. Reports of widespread protests against the slow pace of white-owned farmlands being transferred into black hands and delays in compensating families who were forced off their land during apartheid are disturbing, owing to the fact that the people were promised the transfer of 30% of white-owned farmlands by 2014. This year only 258 890 hectares have been redistributed, which is almost 40 000 hectares less than in 2002. South Africans have been extremely patient and understanding with regard to the issue of land redistribution. However, when there are reports of widespread underperformance in the redistribution of land ... [Time expired.] SUSPENSION OF ABALONE HARVESTING (Member’s Statement) Mnr I F JULIES (DA): Mevrou die Speaker, die Minister van Omgewingsake en Toerisme se besluit om die oes van perlemoen stop te sit sal slegs die wettige vissers straf terwyl die stropers steeds sal voortgaan met hulle kriminele bedrywighede. Deur dié stap sal die Minister juis die belanghebbendes verloor wat ’n rol speel in die beskerming van die vissery. 30 OCTOBER 2007 Page 63 of 104 Wat gaan nou gebeur met wettige perlemoenvissers? Hulle sal in armoede verval. Die Regering se plan om ’n maatskaplike armoedeverligtingsplan bekend te stel om hierdie vissermanne te help sal nie werk nie. Dit is wel waar dat Suid-Afrika ’n perlemoenakwakultuurbedryf nodig het, maar dit sal jare neem om opbrengste te toon en dus ook om die vissers van ’n inkomste te voorsien. Die grootste probleem met die perlemoenbedryf is dat 300 wettige perlemoenvissermanne en 700 ander wat betrokke is by die verwerking van perlemoen miljoene rande belê het in fabrieke en in bote. Die kapitaal is nou bestee en dit is onwaarskynlik dat dit oorgedra kan word na ander visserye, wat reeds oorgekapitaliseer is. Daar is baie vissermanne wat die banke baie geld skuld vir bates waarvoor hulle nou nie meer sal kan betaal nie. Die DA versoek die Minister om dringend sy besluit te heroorweeg en om so spoedig moontlik met die wettige vissermanne te vergader om die gemeenskaplike bestuur van hierdie hulpbron te bespreek. Baie dankie. (Translation of Afrikaans member’s statement follows.) [Mr I F JULIES (DA): Madam Speaker, the Minister of Environmental Affairs and Tourism’s decision to put a stop to abalone harvesting will only punish legal fishermen while poachers will continue with their criminal activities. By taking this step the Minister will, in 30 OCTOBER 2007 Page 64 of 104 fact, lose the interested parties who play a role in the protection of the fishing industry. What is going to happen to legal abalone fishers? They will fall into poverty. The government’s plan to introduce a social poverty alleviation plan to assist these fishermen won’t work. It is, indeed, true that South Africa needs an abalone aquaculture industry, but it will take years to show a return as well as supplying the fishermen with an income. The biggest problem in the abalone industry is that 300 legal abalone fishermen and 700 others who are involved with abalone processing have invested millions of rands in factories and boats. The capital has already been spent and it is unlikely that it can be transferred to other fisheries, which are already overcapitalised. There are many fishermen who owe the banks a lot of money for assets they will no longer be able to pay for. The DA requests the Minister to reconsider his decision as a matter of urgency and to meet with the legal fishermen as soon as possible to discuss the joint management of this resource. Thank you very much.] MURDER OF DR “POX” REGHAVJEE 30 OCTOBER 2007 Page 65 of 104 Prof S M MAYATULA (ANC): Somlomo, into yokugetyengwa ngokumasikizi kuka-Gqr “Pox” Reghavjee eQonce ngentsasa yayizolo, ilanga lihlabe umhlaba, isothusile, kwaye isivusele umnyele thina bantu baseMpuma Koloni. Lo ibingugqirha wabantu nosincede kakhulu nangexesha localucalulo kwingingqi yaseQonce. Sithi kwabo bambuleleyo: Ingalo yomthetho inde. Sihlaba ikhwelo kwabomthetho nakuluntu ngokubanzi ukuba lubambisane ukulwa nalo mthyoli ukuze kufunyanwe abenzi bobu bubi. Enkosi. [Kwaqhwatywa.] (Translation of isiXhosa member’s statement follows.) [Prof S M MAYATULA (ANC): Madam Deputy Speaker, the brutal murder of Dr “Pox” Reghavjee in Queenstown, yesterday morning, in broad daylight, has shocked us and has disturbed us as the people of the Eastern Cape. This was a people’s doctor who helped us greatly during the apartheid era in Queenstown and surrounding areas. To those who killed him we say: Beware the long arm of the law. We would like to plead with law enforcement officials to co-operate in fighting this abomination so that the perpetrators of this crime may be brought to book. [Applause.]] SCOURGE OF VIOLENCE AT SCHOOLS (Member’s Statement) Ms C N Z ZIKALALA (IFP): Madam Deputy Speaker, we are in a crisis and do not seem to have any solutions at hand. The level of violence in and around our schools has spiralled out of control. A Durban 30 OCTOBER 2007 Page 66 of 104 teacher was stabbed and robbed of her vehicle as she was leaving her school in Marianhill yesterday. The incident happened just a few days after 23 teachers were held up at Savanna Park Secondary School, near Marianhill. The future of our children and grandchildren looks bleak. They are not able to concentrate on their school activities as they have to be vigilant for acts of violence and criminal activities. The only way that we will overcome this scourge is for all of us to work together and try our utmost to find lasting solutions. It is unacceptable that learners do not feel safe in their schools. The future of our country and of our youth needs to be liberated from the unscrupulous criminals who are holding them hostage and who seem to commit their criminal activities at will. The culture of violence and lack of respect must be stopped before it takes root in our society and becomes the norm. I thank you, Madam Deputy Speaker. IMPROVED SERVICE DELIVERY IN SOSHANGUVE (Member’s Statement) Mr H P MALULEKA (ANC): Madam Deputy Speaker, Soshanguve is one of the biggest townships in Tshwane, which, like many of our townships, is still lagging behind as regards some essential services. Our 30 OCTOBER 2007 Page 67 of 104 government has established a number of departments within the township. Residents of Soshanguve now have services provided on their doorstep by the following government departments: Labour; Correctional Services; Justice; SA Police Service; Social Development; Home Affairs; and GCIS. We would like to thank the MEC for Social Development in Gauteng, Mr Kgaogelo Lekgoro, for his quick response after we brought to his attention the need for more resources for social workers who work in Soshanguve. The MEC has made the following tools of the trade available to our social workers: computers with 3-G connectivity, four cars of which two are subsidised, and office space, which is currently being renovated. We have also been informed that social workers who are not office-bound will be provided with cellphones. These interventions can only mean improved service delivery and the realisation of our commitment to create a better life for all. I thank you, Madam Deputy Speaker. [Applause.] KAUSHIK PATEL NAMED CHIEF FINANCIAL OFFICER OF SAA (Member’s Statement) Dr S M VAN DYK (DA): Deputy Speaker, last week SAA appointed Kaushik Patel, the former chief financial officer of Telkom, as its new chief financial officer. No mention was made of this to the 30 OCTOBER 2007 Page 68 of 104 Portfolio Committee on Public Enterprises, which was briefed by the airline a week before. SAA’s overstretched board is known not to pay attention when it matters most and therefore this situation creates suspicion and concern. Just take into account that Mr Patel will be SAA’s fourth CFO in only one year. Members will agree with me that this is a highly unusual situation for a multi-billion rand company to be in. It is also the same year in which SAA Chief Executive ``Emperor`` Khaya Ngqula promised to turn the state airline’s R883 million loss into a R47 million net profit. Of course, seeing is believing. Given SAA’s performance under him, Ngqula’s abilities are by no means proven. Along with the fact that he has a hand in at least 22 other companies, he will need all the assistance he can get to turn SAA around. About 2 232 employees will lose their jobs to save R863 million. They need to know that this is not for nothing. Another R3 billion in taxpayer’s funds have been requested from Treasury, of which R1,3 billion has already been paid for recapitalisation. South Africans need to know that Mr Patel’s appointment was the culmination of an exhaustive process to find a CFO to guard the 30 OCTOBER 2007 Page 69 of 104 taxpayer’s ever-increasing investment in SAA. Public Enterprises Minister Alec Erwin needs to provide that assurance to Parliament. Thank you, Madam Deputy Speaker. [Applause.] ELDORADO PARK FM (Member’s Statement) Mr S J NJIKELANA (ANC): Madam Deputy Speaker, my statement is about another creative and dynamic development tool for Eldorado Park. On 15 September, history was made in Eldorado Park in the Deep South around Johannesburg when Eldorado Park FM was formalised. Whilst the establishment of community radio stations is a growing activity in South Africa, the uniqueness of Eldorado Park FM is confirmed by the composition of its board of directors, which is well balanced in terms of gender, race and age grouping. What was also admirable was the effort put in by the youth empowerment network of Eldorado Park in relentlessly pursuing this project to its current stage of development. The board of Eldorado Park FM committed itself to promoting community values and a true sense of South Africanness. There was a clear commitment that various languages other than English and Afrikaans would also be used. 30 OCTOBER 2007 Page 70 of 104 Participation from the areas that will be covered will be strongly encouraged and adhered to. Areas that will benefit are Slovo Park, Kliptown and Klipspruit in Soweto and Freedom Park as well as Eldorado Park itself. Even local councillors have endorsed the intention for the station to cover local activities in the City of Johannesburg regarding service delivery and development projects generally. Thank you. [Applause.] DEPARTURE OF DIRECTOR-GENERAL OF AGRICULTURE AND LAND AFFAIRS AND PERFORMANCE OF DEPARTMENT (Member’s Statement) Mnr A H NEL (DA): Dit is vanoggend aangekondig dat die Minister van Landbou en Grondsake en die Direkteur-generaal van Grondsake ooreengekom het dat sy dienste beëindig word. Die hele saga spruit voort uit mnr Glen Thomas se bywoning van die Wêreldbeker-eindstryd waar hy, ongelukkig vir hom, op televisie gesien is. Dit wys ‘n mens hoe ‘n gevaarlike spel rugby is! [Gelag.] Feit is egter dat Grondsake al ‘n geruime tyd nie presteer nie. Die Minister het die department laat ondersoek deur die Staatsdienskommissie. Die President het sy ontevredenheid uitgespreek met die leiding van die department wat, volgens hom, net beplan, maar niks uitvoer nie. 30 OCTOBER 2007 Page 71 of 104 Die Minister en haar Adjunk kan egter nie agter rugby skuil nie. Hulle moes al lankal opgetree het. Hulle het hul plig versuim. (Translation of Afrikaans member’s statement follows.) [Mr A H NEL (DA): It was announced this morning that the Minister of Agriculture and Land Affairs and the Director-General of Land Affairs have agreed that his services would be terminated. The whole saga resulted from Mr Glen Thomas attending the World Cup Final where, unfortunately for him, he was seen on television. This goes to show what a dangerous game rugby really is! [Laughter.] However, the fact is that Land Affairs has not been performing for quite some time. The Minister has had the department investigated by the Public Service Commission. The President has expressed his dissatisfaction with the leadership of the department, which, according to him, only plans, but never carries anything out. The Minister and her Deputy cannot hide behind rugby, however. They should have acted long ago. They have neglected their duties.] AIDS STATISTICS AND THE NEED TO REVISE AIDS POLICIES (Member’s Statement) 30 OCTOBER 2007 Page 72 of 104 Dr R RABINOWITZ (IFP): Deputy Speaker, the recent comments from the United Nations Children’s Fund that our country has lost the Aids battle give us cause for concern. One hears reports from various sectors of the Health department that the numbers of people with HIV are decreasing in certain categories. However, statistics that have been issued by the statistical bodies monitoring the Aids epidemic in South Africa indicate that, although their statistics are not identical, in all categories the numbers of people suffering from HIV are increasing, and the numbers of people who will die from HIV will increase from the current 1 000 per day to 1 100 or 1 200 per day in the coming years. That being the case, something drastic should be done about our current Aids policies. The Minister of Finance’s voting of additional money to fight HIV and tuberculosis is not the answer. Thank you. AGENDA TO TOPPLE DA-LED MULTIPARTY GOVERNMENT IN WESTERN CAPE (Minister’s Response) The MINISTER OF SAFETY AND SECURITY: Deputy Speaker, obviously the fear of the ongoing investigation into the case that the hon Botha has referred to, is causing them sleepless nights. Hon Botha, the fact of the matter is that your entire leadership is running scared. 30 OCTOBER 2007 Page 73 of 104 Do you remember the English phrase that says, “the guilty are afraid”? I am sure you can recall that. The fact that you are trying to divert attention from the DA and the possibility that there is more that is going to be uncovered in the investigation, is causing you sleepless nights; but we are going to continue to investigate the case. If a crime has been committed, we will investigate. [Interjections.] The DEPUTY SPEAKER: Order, please, hon members! NEGOTIATIONS ON TEACHERS SALARIES; SCOURGE OF VIOLENCE AT SCHOOLS (Minister’s Response) The MINISTER OF EDUCATION: Deputy Speaker, with respect to the proposed occupation-specific dispensation, which I have placed before the Education and Labour Relations Council, it’s important, perhaps, to say to the member who made the statement that it is vital in negotiations that you don’t negotiate in the media. Therefore, what we have done is to meet with the union representatives, and my department and the unions are discussing the areas in which there appear to be different approaches with respect to the model. 30 OCTOBER 2007 Page 74 of 104 I shall just repeat that what we would want to achieve is, of course, an occupation-specific dispensation for teachers that must be achieved in terms of the agreement reached in the Public Service bargaining chamber. That dispensation must be linked to performance assessment, because we have agreed that performance has to be a core part of the model. It must support career pathing in a positive fashion for educators in service; it must recognise experience; it must encourage qualifications and recognise them; and it must also support us in retaining scarce skills in the critical core subjects or gateway subjects: maths, science and technology. We hope that the final model, which I trust will be agreed to, and which I think we know is as far apart as our statements in the media may indicate, will at least have these core principles enshrined in it. On the matter of violence in schools, clearly, this is an aspect that all of us should be worried about. I think what we should be doing is to engage our young people in our communities, in our homes and in our schools, to begin to share a set of core values that we would promote and hope young people would espouse the notion that when there is a quarrel you resolve it without a knife, a gun or a dangerous object; if you differ, you discuss the difference and arrive at an agreement. 30 OCTOBER 2007 Page 75 of 104 I think this Parliament has great experience at finding one another in a range of domains. We need to transmit that manner of conflict resolution to the children of our country and, as parents, play a greater role in shaping the moral fibre of our children and not just leave this to teachers. Apart from the rules and measures we put in place each of us, as South Africans, have a role to play. SUSPENSION OF ABALONE HARVESTING (Minister’s Response) Die MINISTER VAN OMGEWINGSAKE EN TOERISME: Speaker, ek wil graag reageer op die agb Julies van die DA se verklaring oor die kommer oor die opskorting van perlemoenvangste. Laat ek dadelik sê dit is nie ’n besluit wat ons maklik geneem het nie, maar dit is ook nie die eerste keer dat dit gebeur in ons visbedryf nie. Daar is al voorheen sulke noodtoestande verklaar ten opsigte van sommige van die visbronne waar daar ’n probleem was. Wat met die perlemoen gebeur, is dat hierdie bron jaar ná jaar besig is om dramaties te krimp. Dit het oor die afgelope dekades gekrimp van ’n jaarlikse kwota van duisende ton na 600 ton enkele jare gelede, en tot slegs 125 ton verlede jaar. 30 OCTOBER 2007 Page 76 of 104 By al die besluite wat ons neem, neem ons ’n sterk wetenskaplike inset in berekening. Wat baie belangrik is, is dat ons dit nie net gaan opskort het nie. Ons het ook daarmee saam ’n maatskaplike plan aangekondig om die impak te versag op dié mense wat geraak word, maar ons weet almal dit is baie moeilik om die impak 100% uit te skakel. Dis ’n baie moeilike besluit vir enige regering om te neem. Ek vergader later vanmiddag met Cosatu en Masifundisi. Ons het niks om weg te steek nie. Die besluit wat ons neem, is ’n besluit waarvan ons die inligting met enigiemand kan deel, en ek is selfs bereid om dit direk met Cosatu te bespreek. Môreoggend sal ek ook aan die portefeuljekomitee ’n deeglike voorlegging daaroor doen, maar dis ’n moeilike besluit en ons kyk na alle opsies om te kyk of ons nie steeds die impak kan versag nie. [Applous.] (Translation of Afrikaans Minister’s response follows.) [The MINISTER OF ENVIRONMENTAL AFFAIRS AND TOURISM: Speaker, I would like to respond to the hon Julies of the DA’s statement regarding the concern about the suspension of abalone fishing. Let me say immediately that this is not a decision that we took lightly, but it is also not the first time that this has happened in our fishing industry. Such states of emergency have been declared 30 OCTOBER 2007 Page 77 of 104 before with regard to some of the fish resources where there was a problem. What has happened to the abalone is that this resource is diminishing drastically year after year. Over the last few decades it has declined from a yearly quota of thousands of tons to 600 tons a few years back, and to only 125 tons last year. In all the decisions we take, we take a strong scientific input into account. What is very important is that we are not simply going to suspend it. Along with it we also announced a social plan to soften the impact on those people who are affected, but we all know that it is very difficult to eradicate the impact 100%. It is a very difficult decision for any government to take. Later this afternoon I will be meeting with Cosatu and Masifundisi. We have nothing to hide. The decision we are taking is a decision we can share the information of with anyone, and I am even prepared to discuss it with Cosatu directly. Tomorrow morning I will also give a thorough presentation on it to the portfolio committee, but it is a difficult decision and we have to look at all the options to see if we can’t still soften the impact. [Applause.]] 30 OCTOBER 2007 Page 78 of 104 MURDER OF DR “POX” REGHAVJEE (Minister’s Response) The MINISTER OF CORRECTIONAL SERVICES: Deputy Speaker, I am only taking the one issue, which is on the murder of Dr “Pox” Reghavjee, because there is a Minister for the one on correctional services, and that is the Deputy Minister of Correctional Services. Malunga no Gqr “Pox” Reghavjee eQonce, sithumela imiyalezo yosizi novelwano kusapho lwakhe nakubantu beelali zonke zasekhaya, nezijikeleze idolophu yaseQonce. Ukugetyengwa kwalo qgirha wabantu kusothusile sonke. Kwabo benze obu bubi neli nyala lihlasimlisa umzimba sithi, ingalo yomthetho inde. Amapolisa aphume iphulo njengokuba ndithetha nje, athe mbende emva kwabo ukuze ababambe abo sathana. Niyaya emaplangeni, kanti naseKokstad entolongweni ndinilindile. (Translation of isiXhosa paragraphs follows.) [With regard to the murder of Dr “Pox” Reghavjee in Queenstown, we would like to convey our condolences to his family and to the people of the villages surrounding Queenstown. The murder of this people’s doctor has shocked all of us. To those who have committed this heinous deed we would like to say: beware the long arm of the law. 30 OCTOBER 2007 Page 79 of 104 The police are investigating as we speak. They are tracking them down so that they may arrest these devils. You are going to appear in court and I am waiting for you at the Kokstad prison. CORRECTION WEEK ELDORADO PARK FM (Minister’s Responses) The DEPUTY MINISTER OF CORRECTIONAL SERVICES: Deputy Speaker, I want to respond to the statement made by the hon Chikunga as well as that of the hon Njikelana. Firstly, I want to welcome the statement of the hon Chikunga, and secondly, to re-emphasise the call of the hon member to all of us to mobilise and rally our communities behind the Department of Correctional Services call to make corrections, rehabilitation, and social reintegration the responsibility of all South Africans in order to ensure a safer and more secure South Africa. Lastly, I would like to remind the members of the yellow ribbon campaign – and I only see the Minister and myself wearing our yellow ribbons - since I explained the purpose of the yellow ribbon campaign last week. It is aimed at embracing ex-offenders upon their 30 OCTOBER 2007 Page 80 of 104 release and encouraging them to live crime-free lives and join the majority of people who are upright citizens of this country. On the second statement by the hon Njikelana, I would also like to congratulate Eldorado Park FM on their launch in September 2007, and hope that the community of Eldorado Park and beyond will use this radio station to increase their participation in local, provincial and national government. Lastly, I would like to call on Eldorado Park FM to raise topical matters that will assist, not just that community but all South Africans, to bring to the attention of law makers issues that will enable them to create a better life for all. Thank you. [Applause] The DEPUTY SPEAKER: Hon Deputy Minister, I do apologise for my pink rose. Thank you. [Laughter.] AGENDA TO TOPPLE MULTIPARTY GOVERNMET IN WESTERN CAPE (Minister’s Response) The MINISTER IN THE PRESIDENCY: Deputy Speaker, those who shout the loudest about democracy respect it the least. They must explain to us, because before you intercept anybody’s communications you need a court order. Did they have a court order or not? Do not come here, digress, and talk of something else or somebody else getting reports 30 OCTOBER 2007 Page 81 of 104 without telling us whether they did or did not have a court order. They paid this money ... Mr M J ELLIS: Deputy Speaker, may I rise on the point of order to say that we have already had a response from a Minister to the hon Sandra Botha on this matter, and I believe the Rules imply that there should be only one ministerial response to each issue. Thank you. THE LEADER OF THE OFFICIAL OPPOSTION: Madam Deputy Speaker, I would be delighted to have a second one. Thank you. The MINISTER IN THE PRESIDENCY: Yes, that is your democratic right. That is the first point. The second point is that they must come clean. Did the DA and that speaker intercept the communications of their own members or their allies such as the ID without a court order or not? Surely we need to come clean on those questions, because if you did that I want to know what respect you have for democracy. The third point is that the DA knows ... [Interjections.] The DEPUTY SPEAKER: Order, hon members! I need to be able to follow what is being said in the House and you ... Mr M J ELLIS: It is not worth following. The DEPUTY SPEAKER: It is worth following from where I am sitting. 30 OCTOBER 2007 Page 82 of 104 The MINISTER IN THE PRESIDENCY: Ag, laat hulle skreeu man, [Oh, let them shout], because there is nothing else they can do. The third point is that they know that it is not in the power of the Minister or the Premier or anybody else to charge people. That is the responsibility of the Directorate of Public Prosecutions, but those who feel aggrieved by what Mr Chabaan has done have a right to go and charge him. So why do we stand here, under the protection of this Chamber, and make these statements? Go and lay a charge, because that is your democratic right. The last point that I want to make is that if you respect democracy you will, therefore, respect the fact that this side of the House has 70% of the legislative powers here in South Africa. Respect democracy. [Time expired.][Applause.] MURDER OF THREE FEMALE LAUNDRY WORKERS (Minister’s Response) The MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Yes, interception without permission is a crime. There is a charge for that. My sister ... 30 OCTOBER 2007 Page 83 of 104 ... ke batla go tlatsa polelo e e dirilweng ke wena ka kgang ya batho ba ba neng ba bolawa ba bo ba tsenngwa kwa ditshelong tsa “dry-clean”. Ditopo tsa bona tsa fitlhelwa koo. Nnete ke gore bagarona ba utlwile botlhoko thata. Bagarona ba ntse ba re kwalela ba re botsa gore a go na le sengwe se re se dirang ka kgang eo naa. Kwa tshimologong ya kgang e fa re dira dipatlisiso, re utlwile gore diphosonyana di diragetse mo tsamaong. Ga re ise re fitlhelele sentle gore go diragetse eng. Ke kwaletse Mokaedi wa Lekgotla la Bosetšhaba la Botšhotšhisi ke mo kopa gore a re fe pegelo ka botlalo. Ke solofela gore pegelo eo e tla tla. E tla re thusa gore re le Khuduthamaga re kgaleme fa re kgalemang teng, re kgothatse gore ba dire tiro tsa bona jaaka ba tshwanetse go di dira. Ke tla bowa ke bega sentle ka kgang e. Gona re diegile mme le rona re emetse dikarabo. Ke a leboga. (Translation of Setswana paragraphs follows.) [... I would like to support you on the issue you have raised in your statement, namely the issue of people who were killed and then stuffed into dry-cleaning machines. Their corpses were then hidden there. 30 OCTOBER 2007 Page 84 of 104 The truth of the matter is, our people were seriously affected. Our people are still writing to us, asking us whether we are doing something about this. At the beginning of this case, while we were investigating it, we were told that some mistakes had been made in the meantime. We did not discover exactly what had happened. I wrote to the Director of Public Prosecutions requesting him to give us a full report. I hope the report will come. It will help us as the Executive to condemn the perpetrators if need be and encourage them to do their work as expected. I will come back to report in full on this issue. Indeed, we took some time, but we are also awaiting answers. Thank you.] The House adjourned at 15:29. __________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS FRIDAY, 26 OCTOBER 2007 ANNOUNCEMENTS National Assembly 30 OCTOBER 2007 Page 85 of 104 The Speaker 1. The following paper is referred to the Portfolio Committee on Labour for consideration and report. The report is also referred to the Portfolio Committee on Environmental Affairs and Tourism in accordance with its mandate. The Report of the Auditor-General is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Food and Beverages Manufacturing Sector Education and Training Authority (FoodBev-Seta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 65-2007]. 2. The following papers are referred to the Portfolio Committee on Labour for consideration and report. The reports are also referred to the Portfolio Committee on Finance in accordance with its mandate. The Reports of the Auditor-General are referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Insurance Sector Education and Training Authority (Inseta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 67-2007]. (b) Report and Financial Statements of the Banking Sector Education and Training Authority (Bank-Seta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 57-2007]. 30 OCTOBER 2007 (c) Page 86 of 104 Report and Financial Statements of the Finance, Accounting, Management Consulting and other Financial Services Sector Education and Training Authority (FASSET) for 20062007, including the Report of the Auditor-General on the Financial Statements for 20062007 [RP 63-3007]. 3. The following papers are referred to the Portfolio Committee on Labour for consideration and report. The reports are also referred to the Portfolio Committee on Trade and Industry in accordance with its mandate. The Reports of the Auditor-General on the Financial Statements are referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Services Sector Education and Training Authority (Services Seta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 88-2007]. (b) Report and Financial Statements Clothing, Textiles, Footwear and Leather Sector Education and Training Authority (CTFL-Seta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 60-2007]. (c) Report and Financial Statements of the Wholesale and Retail Sector Education and Training Authority (W&R-Seta) for 2006-2007, including the Report of the AuditorGeneral on the Financial Statements for 2006-2007 [RP 78-2007]. 4. The following paper is referred to the Portfolio Committee on Labour for consideration and report. The report is also referred to the Portfolio Committee on Agriculture and Land Affairs 30 OCTOBER 2007 Page 87 of 104 in accordance with its mandate. The Report of the Auditor-General is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Agricultural Sector Education and Training Authority (Agri-Seta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 56-2007]. 5. The following paper is referred to the Portfolio Committee on Labour for consideration and report. The report is also referred to the Portfolio Committee on Health and the Portfolio Committee on Social Development in accordance with their mandate. The Report of the Auditor-General is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Health and Welfare Sector Education and Training Authority (HW-Seta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 66-2007]. 6. The following paper is referred to the Portfolio Committee on Labour for consideration and report. The report is also referred to the Portfolio Committee on Education in accordance with its mandate. The Report of the Auditor-General is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Education, Training and Development Practices Sector Education and Training Authority (ETDP-Seta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 62-2007]. 30 OCTOBER 2007 7. Page 88 of 104 The following paper is referred to the Portfolio Committee on Labour for consideration and report. The report is also referred to the Portfolio Committee on Environmental Affairs and Tourism and the Portfolio Committee on Sport and Recreation in accordance with their mandate. The Report of the Auditor-General is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Tourism, Hospitality and Sport Education and Training Authority (Theta) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 77-2007]. 8. The following paper is referred to the Portfolio Committee on Defence for consideration and report. The Report of the Auditor-General on the Financial Statements is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Armaments Corporation of South Africa Limited (ARMSCOR) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 101-2007]. 9. The following paper is referred to the Portfolio Committee on Finance and the Portfolio Committee on Safety and Security for consideration and report. The Report of the AuditorGeneral on the Financial Statements is referred to the Standing Committee on Public Accounts for consideration: 30 OCTOBER 2007 (a) Page 89 of 104 Report and Financial Statements of the Financial Intelligence Centre for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 133-2007]. 10. The following papers are referred to the Portfolio Committee on Arts and Culture for consideration and report. The Reports of the Auditor-General on the Financial Statements are referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the National Museum – Bloemfontein for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007. (b) Report and Financial Statements of Artscape for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007. (c) Report and Financial Statements of the South African State Theatre for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 156-2007]. (d) Report and Financial Statements of the National Arts Council of South Africa (NAC) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 186-2007]. (e) Report and Financial Statements of the Robben Island Museum for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 1612007]. 30 OCTOBER 2007 (f) Page 90 of 104 Report and financial Statements of the Pan South African Language Board (Pansalb) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 174-2007]. (g) Report and Financial Statements of the William Humphreys Art Gallery for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007. (h) Report and Financial Statements of the National Film and Video Foundation (NFVF) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 150-2007]. (i) Report and Financial Statements of the Iziko Museums of Cape Town for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007. 11. The following papers are referred to the Portfolio Committee on Environmental Affairs and Tourism for consideration and report. The Reports of the Auditor-General on the Financial Statements are referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of South African Tourism for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007. (b) Report and Financial Statements of the South African National Biodiversity Institutes (SANBI) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007. 30 OCTOBER 2007 (c) Page 91 of 104 Report and Financial Statements of the Greater St Lucia Wetland Park Authority for 20062007, including the Report of the Auditor-General on the Financial Statements for 20062007. 12. The following paper is referred to the Portfolio Committee on Finance for consideration and report. The Report of the Auditor-General on the Financial Statements is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Financial and Fiscal Commission (FFC) for 20062007, including the Report of the Auditor-General on the Financial Statements for 20062007 [RP 143-2007]. 13. The following papers are referred to the Portfolio Committee on Trade and Industry for consideration and report. The Reports of the Auditor-General and the Independent Auditors on the Financial Statements are referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Industrial Development Corporation of South Africa Limited (IDC) for 2006-2007, including the Report of the Independent Auditors on the Financial Statements for 2006-2007. (b) Report and Financial Statements of the Competition Commission for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 1022007]. 30 OCTOBER 2007 14. Page 92 of 104 The following papers are referred to the Portfolio Committee on Public Enterprises for consideration and report. The Reports of the Auditor-General and the Independent Auditors on the Financial Statements are referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of Vote 9 – Department of Public Enterprises for 20062007, including the Report of the Auditor-General on the Financial Statements of Vote 9 for 2006-2007 [RP 196-2007]. (b) Report and Financial Statements of the South African Forestry Company Limited (SAFCOL) for 2006-2007, including the Report of the Independent Auditors on the Financial Statements for 2006-2007. 15. The following paper is referred to the Portfolio Committee on Public Enterprises and the Portfolio Committee on Minerals and Energy for consideration and report. The Report of the Independent Auditors on the Financial Statements is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Pebble Bed Modular Reactor (Proprietary) Limited for 2006-2007, including the Report of the Independent Auditors on the Financial Statements for 2006-2007. 16. The following paper is referred to the Portfolio Committee on Labour and the Joint Monitoring Committee on Improvement of Quality of life and Status of Children, Youth and Disabled Persons for consideration and report. The Report of the Independent Auditors on 30 OCTOBER 2007 Page 93 of 104 the Financial Statements are referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Umsobomvu Youth Fund (UYF) for 2006-2007, including the Report of the Independent Auditors on the Financial Statements for 20062007. 17. The following paper is referred to the Portfolio Committee on Labour for consideration and report. The Report of the Auditor-General on the Financial Statements is referred to the Standing Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Commission for Conciliation, Mediation and Arbitration (CCMA) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 93-2007]. TABLINGS National Assembly 1. The Speaker (a) Report and Financial Statements of the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities (CRL) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007 [RP 126-2007]. 30 OCTOBER 2007 (b) Page 94 of 104 Letter from the Minister of Home Affairs, dated 28 September 2007, to the Speaker of the National Assembly, in terms of section 65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the delay in the tabling of the Annual Report of the Department of Home Affairs for 2006-2007. TABLING OF ANNUAL REPORT OF THE DEPARTMENT OF HOME AFFAIRS IN THE NATIONAL ASSEMBLY: 1 APRIL 2006 – 31 MARCH 2007 Dear Speaker In terms of section 65 (2)(a) of the Public Finance Management Act, 1999 as amended, you are hereby informed that the Annual Report of the Department of Home Affairs will be submitted late. The Auditor-General is still finalising his report as he has to consider post-balance sheet events. Please accept my apology in this regard. Yours sincerely N N MAPISA-NQAKULA, MP MINISTER OF HOME AFFAIRS 30 OCTOBER 2007 Page 95 of 104 MONDAY, 29 OCTOBER 2007 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Introduction of Bills (1) The Minister of Environmental Affairs and Tourism (a) National Environment Management: Integrated Coastal Management Bill [B 40 – 2007] (National Assembly– proposed sec 76) [Bill and prior notice of its introduction published in Government Gazette No 30141 of 6 August 2007.] Introduction and referral to the Portfolio Committee on Environmental Affairs and Tourism of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160. In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM within three parliamentary working days. TABLINGS 30 OCTOBER 2007 Page 96 of 104 National Assembly and National Council of Provinces 1. The Speaker and the Chairperson (a) Report and Financial Statements of Vote 2 – Parliament for 2006-2007, including the Report of the Auditor-General on the Financial Statements of Vote 2 for 2006-2007 [RP 97-2007]. TUESDAY, 30 OCTOBER 2007 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Draft Bills submitted in terms of Joint Rule 159 (a) Revenue Laws Second Amendment Bill, 2007, submitted by the Minister of Finance. Referred to the Portfolio Committee on Finance and the Select Committee on Finance. (b) Security Transfer Tax Administration Bill, 2007, submitted by the Minister of Finance. Referred to the Portfolio Committee on Finance and the Select Committee on Finance. 30 OCTOBER 2007 2. Page 97 of 104 Introduction of Bills (1) The Minister of Finance (a) Adjustments Appropriation Bill [B 41 – 2007] (National Assembly – proposed sec 77) (b) Revenue Laws Amendment Bill [B 42 – 2007] (National Assembly – proposed sec 77) (c) Revenue Laws Second Amendment Bill [B 43 – 2007] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 30398 of 22 October 2007.] (d) Securities Transfer Tax Bill [B 44 – 2007] (National Assembly – proposed sec 77) (e) Security Transfer Tax Administration Bill [B 45 – 2007] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 30398 of 22 October 2007.] 30 OCTOBER 2007 Page 98 of 104 Introduction and referral to the Portfolio Committee on Finance of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160. In terms of Joint Rule 154 written views on the classification of the Bills may be submitted to the Joint Tagging Mechanism (JTM) within three parliamentary working days. TABLINGS National Assembly and National Council of Provinces 1. The Minister of Finance (a) Medium Term Budget Policy Statement 2007 [RP 228-2007]. Referred to the Joint Budget Committee and the Portfolio Committee on Finance for consideration and report, in accordance with their respective mandates. (b) Adjustments Appropriation Bill, 2007 [B41-2007]. Referred to the Portfolio Committee on Finance for consideration and report. (c) Adjusted Estimates of National Expenditure 2007 [RP 229-2007], which includes: 30 OCTOBER 2007 1. Page 99 of 104 Memorandum on Vote No 1 - "The Presidency", Adjustments Estimates, 20072008; 2. Memorandum on Vote No 2 - "Parliament", Adjustments Estimates, 2007-2008; 3. Memorandum on Vote No 3 - "Foreign Affairs", Adjustments Estimates, 20072008; 4. Memorandum on Vote No 4 - "Home Affairs", Adjustments Estimates, 20072008; 5. Memorandum on Vote No 5 - "Provincial and Local Government", Adjustments Estimates, 2007-2008; 6. Memorandum on Vote No 6 - "Public Works", Adjustments Estimates, 20072008; 7. Memorandum on Vote No 7 - "Government Communications and Information System", Adjustments Estimates, 2007-2008; 8. Memorandum on Vote No 8 - "National Treasury", Adjustments Estimates, 2007-2008; 9. Memorandum on Vote No 9 - "Public Service and Administration", Adjustments Estimates, 2007-2008; 30 OCTOBER 2007 10. Page 100 of 104 Memorandum on Vote No 10 - "Public Service Commission", Adjustments Estimates, 2007-2008; 11. Memorandum on Vote No 11 - "South African Management Development Institute", Adjustments Estimates, 2007-2008; 12. Memorandum on Vote No 12 - "Statistics South Africa", Adjustments Estimates, 2007-2008; 13. Memorandum on Vote No 13 - "Arts and Culture", Adjustments Estimates, 2007-2008; 14. Memorandum on Vote No 14 - "Education", Adjustments Estimates, 20072008; 15. Memorandum on Vote No 15 - "Health", Adjustments Estimates, 2007-2008; 16. Memorandum on Vote No 16 - "Labour", Adjustments Estimates, 2007-2008; 17. Memorandum on Vote No 17 - "Social Development", Adjustments Estimates, 2007-2008; 18. Memorandum on Vote No 18 - " Sport and Recreation South Africa", Adjustments Estimates, 2007-2008; 30 OCTOBER 2007 19. Page 101 of 104 Memorandum on Vote No 19 - "Correctional Services", Adjustments Estimates, 2007-2008; 20. Memorandum on Vote No 20 - "Defence", Adjustments Estimates, 2007-2008; 21. Memorandum on Vote No 21 - "Independent Complaints Directorate", Adjustments Estimates, 2007-2008; 22. Memorandum on Vote No 22 - "Justice and Constitutional Development”, Adjustments Estimates, 2007-2008; 23. Memorandum on Vote No 23 - "Safety and Security", Adjustments Estimates, 2007-2008; 24. Memorandum on Vote No 24 - "Agriculture", Adjustments Estimates, 20072008; 25. Memorandum on Vote No 25 - "Communications", Adjustments Estimates, 2007-2008; 26. Memorandum on Vote No 26 - "Environmental Affairs and Tourism", Adjustments Estimates, 2007-2008; 27. Memorandum on Vote No 27 - "Housing", Adjustments Estimates, 2007-2008; 30 OCTOBER 2007 28. Page 102 of 104 Memorandum on Vote No 28 - "Land Affairs", Adjustments Estimates, 20072008; 29. Memorandum on Vote No 29 - "Minerals and Energy", Adjustments Estimates, 2007-2008; 30. Memorandum on Vote No 30 - "Public Enterprises", Adjustments Estimates, 2007-2008; 31. Memorandum on Vote No 31 - "Science and Technology", Adjustments Estimates, 2007-2008; 32. Memorandum on Vote No 32 - "Trade and Industry", Adjustments Estimates, 2007-2008; 33. Memorandum on Vote No 33 - "Transport", Adjustments Estimates, 2007-2008; 34. Memorandum on Vote No 34 - "Water Affairs and Forestry", Adjustments Estimates, 2007-2008; Referred to the Portfolio Committee on Finance for consideration and report. 2. The Minister for Public Enterprises (a) Report and Financial Statements of arivia.kom (Pty) Ltd for 2006-2007, including the Report of the Independent Auditors for 2006-2007. 30 OCTOBER 2007 3. Page 103 of 104 The Minister of Trade and Industry (a) Report and Financial Statements of the Technology and Human Resources for Industry Programme (THRIP) for 2006-2007, including the Report of the Auditor-General on the Financial Statements for 2006-2007. (b) Report of the National Industrial Participation Programme for 2006-2007. National Assembly 1. The Speaker (a) Agreement between the Republic of South Africa and the Government of the Republic of Cuba on the Employment of Technical Advisors, tabled in terms of section 231(3) of the Constitution, 1996. (b) Letter from the Minister for Public Enterprises, dated 25 October 2007, to the Speaker of the National Assembly, in terms of section 65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the delay in the tabling of the Annual Report of Arivia.kom for 2006-2007. TABLING OF ARIVIA.KOM’s FINANCIAL STATEMENTS 2006 – 2007 Dear Speaker 30 OCTOBER 2007 Page 104 of 104 In terms of section 65 (1)(a) and (2) of the Public Finance Management Act, 1999 (Act No 1 of 1999), as amended, I am required to table Arivia.kom’s Annual Report and Financial Statements in Parliament within six months after the end of the financial year to which those Statements relate. As Arivia.kom’s financial year ended 31 March 2007, the Annual Report and Financial Statements must be tabled in Parliament not later that 30 September 2007. We are in the process of winding down this state-owned entity. Since our last submission the shareholding in the company has changed resulting in Eskom Enterprises now the major shareholder with 58,5% and Transnet 41,5% of Arivia.com. No Annual Report for Arivia.com has therefore been prepared for the financial year 2006/7. Audited financial statements for that period however are available. In compliance with the PFMA requirements I therefore wish to table the Arivia.kom’s financial statements before Parliament. Kind regards ALEC ERWIN, MP MINISTER OF PUBLIC ENTERPRISES