Address by President Jacob Zuma in response to the debate on the Presidency Budget Vote, National Assembly, Cape Town

13 June 2013

Honourable Speaker,

Deputy President,

Ministers and Deputy Ministers,

Honourable Members,

Good afternoon to you all.

This year's Presidency Budget Vote debate took place during a critical time in our country.

There is still no end in sight to the global financial crisis and economic growth still seems a bit elusive.

We are therefore going through a period that requires unity and common purpose.

It requires leaders from all sectors to lead the country towards action that builds confidence in the economy and which makes our economy more resilient.

It is a period of focusing on solutions and of working together to solve our problems.

It is the time of counting our achievements and our blessings as a nation. In our achievements, we draw lessons and the strength to overcome whatever challenges we may be facing at any particular time.

In this regard, I raised yesterday the need to support the mining sector and to ensure that there is a restoration of labour peace and order in the mining towns.

The mining industry has played an important and significant role in shaping the development path of the South African economy over a century.

Cities and towns have been built on the backbone of the mining industry as well as other related industries such as manufacturing, financial services, electricity and transportation.

In addition, mining has been cited as one of the six job drivers in the New Growth Path, which now forms part of the National Development Plan. 

It is important as well that close to 60 percent of South African exports are mining sector related.

Mining companies also account for a large portion of the Johannesburg Stock Exchange capitalisation and attract significant amounts of foreign inflows which help to finance the current account.

The National Treasury reports that the mining strikes of last year subtracted 50 basis points from growth and an additional 30 basis points from growth in the current year.

If it was not for the mining strikes the economy could have created more than fifty seven thousand jobs. While the mining sector has recorded some recovery in the first quarter of 2013, the sector is still performing below its potential.

It is for this reason that we place a high premium on restoring stability in the mining sector.

The Deputy President will meet the mining stakeholders tomorrow. We are encouraged by the seriousness with which the industry takes the intervention.

It is therefore disturbing that some parties see in this serious matter an opportunity for mudslinging instead of supporting the process.

Some Honourable Members of the Official Opposition have even distorted the reasons for the depreciation of the Rand, probably as part of the agenda to  continuously portray the country as failing.

The fact is that markets were very volatile on the day of the media briefing on the economy. Traders responded to news from the United States on quantitative easing, a form of very lax monetary policy in the United States. This led to the strengthening of the dollar.

Thus the Rand's weakness is a natural consequence of lower commodity prices and a surging dollar.

Domestic events such as labour unrest would also have added to an already volatile situation.

Markets were also surprised by the weak GDP figures. There had been an expectation that growth would be between one and two percent. When the 0,9 percent growth figures  were released, there was a sell-off of the Rand.

The bottom line is that we should exercise caution when dealing with such matters and avoid uninformed or loose talk that may exacerbate the situation.

We have noted as well that some opposition speakers used a statement by the Governor of the South African Reserve Bank selectively to suit their own ends.

The South African Reserve Bank has consistently expressed its concerns about the continued global financial crisis and its impact on emerging markets, including South Africa.

The government respects the views of the Bank, as well as the fact that it acts in the interests of the country and not on a party political basis.

It is therefore unfortunate that some in the opposition have, in this debate, endeavoured to use the Bank for their own narrow political purposes.

This again reflects how some of the opposition parties functions as opposition for opposition's sake, and fail dismally to recognise the need to put the country first.

Honourable Members,

The ANC took a conscious decision to establish a planning entity in the fourth administration. This is outlined clearly in the 2009 Manifesto of the ANC, as follows;

"We will ensure a more effective government and improve the coordination and planning efforts of the developmental state by means of a planning entity to ensure faster change".

Thus the National Planning Commission was established as the planning entity referred to in the Manifesto. The National Development Plan that it produced last year, is one of the key achievements of this fourth administration.

We now have a long-term socio-economic development road map. It ensures certainty with regards to the direction of the country in the next 20 years.

The Plan was adopted by Cabinet. It enjoys the support of parliament. It was also endorsed by the ruling party the ANC, at its national conference in Mangaung in December. The NDP also enjoys the support other sectors of society. Very few policy documents have ever enjoyed such wide-spread support.

Given our democratic culture and tradition in the ANC, we allow freedom of expression and debate. Therefore, we do not share the hysteria expressed by some in the Opposition when people raise their views about the National Development Plan or criticise it.

As outlined yesterday, we are already in the implementation phase of the Plan.

All government department strategic plans and those of municipalities and provinces will be aligned to the Plan.

Honourable Speaker,

The 19th of June is the centenary of the coming into effect of the 1913 Land Act, through which land was summarily taken away from black people.

The painful impact of the Land Act is best understood through the statements of ANC leaders at various times. Former ANC secretary general, Sol Plaatje summed up the impact as follows;

"Awaking on Friday morning, June 20, 1913 the South African native found himself, not actually a slave, but a pariah in the land of his birth"[1].

In a letter to the Prime Minister of the time on the 14th of February 1914, the first president of the ANC Rev John Dube, said the following in protest against the 1913 Natives Land Act;

"We have seen our people driven from the places dear to them as the inheritance of generations, to become wanderers on the face of the earth".

ANC President Sefako Makgatho, in his Presidential Address to an ANC annual conference in Cape Town in 1919 stated as follows;

"The Native Land Act still operates as mercilessly in different parts of the Union, and as a result many native families are still working for white farmers only for their food".

Former ANC President Dr AB Xuma best explains the importance of land in his Presidential address to the 1941 ANC conference.

He said; "The fundamental basis of all wealth and power is the ownership and acquisition of freehold title to land. From land, we derive our existence. We derive our wealth in minerals, food, and other essentials.

"On land we build our homes. Without land we cannot exist..... Without land-rights any race will be doomed to poverty, destitution, ill-health and lack of all life`s essentials''.

President Nelson Mandela, in his statement from the dock in 1964, also described life for landless black people living under a regime founded on the doctrine of white supremacy.

He said;

"Forty per cent of the Africans live in hopelessly overcrowded and, in some cases, drought-stricken Reserves, where soil erosion and the overworking of the soil makes it impossible for them to live properly off the land.

"Thirty per cent are labourers, labour tenants, and squatters on white farms and work and live under conditions similar to those of the serfs of the Middle Ages".

It is for this reason that the democratic government had to prioritise land reform as part of redress and as part of the goals of national reconciliation.

The Chief Whip of the majority party, Hon Motshekga reminded us that the ANC government identified nation building and restitution as part of the national agenda. 

Uma kuqala uhulumeni wentando yeningi ngo-1994, abantu bakithi babelindele ukuthi kubuye nomhlaba ngoba kwakuyinto ebaluleke kakhulu kwezazibangwa.

Njengoba sizobe sikhumbula lolusuku lweminyaka eyikhulu selokhu kwashawa umthetho owaphuca abamnyama umhlaba, phecelezi i-Natives Land Act, sizobe sibheka indima esesiyihambile ekubuyiseni umhlaba.

In the State of the Nation Address, I announced the re-opening of the lodgement of land claims, for those who did not claim during the first window of opportunity.

Cabinet has approved the Restitution Amendment Bill for public comment, which will assist those who missed the 1998 cut-off date.

Consultations will be undertaken with regards to the 1913 cut-off date for the descendants of the Khoi and San, the heritage sites and historic landmarks. 

The Minister of Rural Development and Land Reform outlined work that is being done on the land question.

We reiterate our call to those who need land and those who must release land to cooperate and ensure that the process is undertaken amicably, successfully and within the framework of the Constitution.

Honourable Bhengu you reminded us of the need to construct a positive narrative about our country. You mentioned a few positive attributes which include;

• Good infrastructure
• Institutions that work
• Robust democracy
• A dynamic private sector
• Strong public finance and healthy financial institutions.

Indeed we should learn to trumpet these successes.

South Africa is a much better place to live in since the dawn of freedom in 1994 and that message should not be drowned by negativity.

Honourable Meshoe raised an important issue of how we can support shop owners in townships and villages who now find themselves facing competition from enterprising foreign nationals.

The Department of Trade and Industry has programmes of supporting small businesses. 

The statistics for the past financial year are as follows;

• 1,514 SMMEs were supported through the Incubator programme,
• 314 SMMEs were supported through the Co-operative Incentive Scheme, and
• 1,213 SMMEs were supported through the Black Business Supplier Development Programme.

Honourable Members

I trust that the Democratic Alliance has noted the comments of Minister Chabane, Honourable Bhoola and Honourable Ngcobo on the need to be honest and genuine in appreciating President Mandela.

We raised the point last year that people should not create their own superficial image of Madiba.

They must love Madiba the Volunteer-in-Chief of the Defiance Campaign, Madiba the uMkhonto Wesizwe commander-in-chief, Madiba the revolutionary, Madiba the long-serving prisoner.

We must not only focus on Madiba the first President of a democratic South Africa who implemented ANC policies of reconciliation and transformation.  His rich legacy and history must not be distorted.

Honourable Members,

Let me reiterate our seriousness with regards to fighting the scourge of drugs and substance abuse.

Honourable Mfundisi you are correct it should not take the visit of the President to an area for there to be action or service delivery.

You made an example of my visit to Eldorado Park. Government Departments are attending to the drugs and substance abuse problem nationwide. It is one of our key campaigns given the seriousness and negative impact.

It is unfortunate that Honourable Steenhuissen has dismissed such a crucial programme that will save our youth and many families as electioneering in this debate.

The mothers of Mitchells Plain, Eldorado Park, Westbury, Mamelodi, kwaMashu, Galeshewe and many areas find hope in the government intervention.

An email I received from Ly-anne Snowy Trenton of Westbury pleading for assistance states that children are "breastfeeding from Tik, Dagga, Cocaine, Heroine, and are finding their comfort in lolly lounges".

She states; "Please the concerns are the same all over regardless of our colour, creed, religion or status, we are all crying out to "SAVE THE CHILDREN". I foresee a lost generation if we do not strike while the iron is still hot".

Earlier this week the Gauteng task team dealing with drugs visited Ennerdale and Westbury.

Honourable Members,

We have done a lot to promote national reconciliation and nation building.

The democratic government also made the removal of racist legislation out of the statutes its first task in 1994.

Honourable Manamela revealed last night that prejudice and racism are still very much a part of some sections of society, even in political parties that claim to be non-racial.

What Hon Manamela said, is supported by what Former President Mandela said in his statement from the dock in 1964.

He outlined the fundamental prejudice and beliefs that black people are subhuman.

He said;

"Menial tasks in South Africa are invariably performed by Africans. When anything has to be carried or cleaned the white man will look around for an African to do it for him, whether the African is employed by him or not. Because of this sort of attitude, whites tend to regard Africans as a separate breed.

"They do not look upon them as people with families of their own; they do not realize that they have emotions - that they fall in love like white people do; that they want to be with their wives and children like white people want to be with theirs; that they want to earn enough money to support their families properly, to feed and clothe them and send them to school".

Honourable members,

We are thus challenged to work harder still, to eradicate racism and related intolerances from society. We trust that some in the Opposition will not be found wanting in this regard.

Honourable Members,

Honourable Speaker

We learned with sadness, the news of the passing of Mrs Freda Cronin, mother of Deputy Minister Cronin. We extend our sincere condolences to the Deputy Minister and his family.

Allow me to extend our good wishes to trade unionist and freedom fighter Reg September, who turns 90 years old today. May he have many more!

On the 17th of August 2013, the Department of Sports and Recreation and Arts and Culture will host the Inaugural Nelson Mandela Sports Day in Johannesburg.

The Springboks and Bafana Bafana will share a field in taking on foreign opponents. This will be followed by a cultural diversity International Concert. The event is part of celebrating the legacy of Madiba. It will also promote  nation building, reconciliation and patriotism.

Honourable Members,

We wish all young people a successful National Youth Day commemoration on June 16. We also extend good wishes to all fathers as June 16 this year is also Father's Day.

Honourable speaker,

Honourable Members,

South Africa is indeed a much better place than it was 19 years ago.

On behalf of the Deputy President, the two Ministers and our Deputy Minister, we thank you all for your support.

I thank you.

Issued by The Presidency, June 13 2013

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