Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698928450073.pdf (South Africa)
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 1 THURSDAY, 3 MARCH 2022 ____ PROCEEDINGS OF MINI-PLENARY SESSION - NATIONAL ASSEMBLY ____ Members of the mini-plenary session met on the virtual platform at 14:00.

House Chairperson Mr M L D Ntombela took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS The HOUSE CHAIRPERSON (Mr M L D Ntombela): Hon members, before we proceed, I would like to remind you that the virtual mini- plenary is deemed to be in the precinct of Parliament, and constitutive the meeting of the national Assembly for debating purposes only.

In addition to the rules of the virtual sitting, the rules of the National Assembly, including the rules of debate apply.
Members enjoy the same powers and privileges that apply in a sitting UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 2 of the National Assembly.

Members should equally note that anything said in the virtual platform is deemed to have been said to House and maybe ruled upon.

All members who have logged in, shall be considered to be present and are requested to mute their microphones and only unmute when recognised to speak.
This is because the microphones are very sensitive and will pick up noise which might disturb the attention of other members.

When recognised to speak, please unmute your microphone and connect your video.

Members may make use of the icons on the bar, at the bottom of theirs screens which has an option that allows a member to put up his or her hand to raise points of order.

The secretariat will assist in alerting the Chairperson to members requesting to speak.
When using the virtual system, members are edged to refrain or desist from unnecessary points of order or interjections.

Hon members, we shall now proceed to the First Order of this mini-plenary session, which is a subject for discussion in the name of the hon D M Stock: On expanding the comprehensive social security system, in order to not leave anyone behind.

I now recognise the hon D M Stock from the virtual platform.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 3 EXPANDING THE COMPREHENSIVE SOCIAL SECURITY SYSTEM IN ORDER NOT TO LEAVE ANYONE BEHIND (Subject for Discussion) Mr D M STOCK: Hon House Chairperson, today we are debating the critical aspect which is enshrined in the Constitution and its Bill of Rights.

A debate on expanding the comprehensive social security system to leave no one behind.
It directly speaks about securing the socioeconomic rights for all South Africans.

The democratic dividends for all South Africans can only be brought through the realisation of the promise and commitment of creating a united and prosperous South Africa.

It is critical that we premise our debate with the correct conceptual understanding of the comprehensive social security system.

It is comprehensive because it responds to the multiple deprivations.
The poor experience deprivations from access to basic services such as water and sanitation, shelter, food and lack of income.

Those are some of the issues that the debate should be able to deliberate around.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 4 The National Development Plan states that by 2030, South Africa should have a comprehensive system of social protection that includes social security grants, mandatory retirement savings, risk benefits and voluntary retirement savings.

It emphasises that part of our approach to social protection is through a social wage which includes no-fee schools, free basic services and subsidised public transport.
In addition to creating more jobs in the private sector, a significant broadening of government’s public employment programmes will also be able to help to ensure that fewer households live above the poverty line.

Addressing poverty requires a multiple dimensional approach which a comprehensive social security system responds to.

Since the democratic breakthrough, the ANC has placed a social wage at the centre of transforming the lives of ordinary South Africans without leaving no one behind.
We have witnessed an increase in social grants for the elderly and also broadened our social protection system to include people with disabilities, child grants and foster care grants which also brings about relief to the vulnerable people throughout our country.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 5 This is a commitment of the ANC to ensure that we eradicate hunger in our nation.

South Africa now pays grants to more than 46% of the population.
For the current year government has allocated approximately about R44 billion for a 12-month extension of the R350,00 social relief of distress grant.

The legacy of apartheid has entrenched inequality and poverty in our country.

In the process of addressing inequality and unemployment through economic development and transformation, our caring ANC government has ensured that the majority of poor are protected and are being taken care of.
As the ANC-led government, we went further through the introduction of social relief of distress grant which has demonstrated to bring about much-needed relief for the unemployed, particularly the youth who are not covered by the current grant payments.

The grant has provided relief for those with food security challenges.

It has enabled the unemployed to search for employment, whilst for others it has alleviated poverty in their households.
We do not agree with the notion that we are building a welfare state which creates a dependency syndrome on the state.

This UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 6 notion is devoid of the facts and ignores the comprehensive nature of our social wage.

The people of South Africa, black and white pledged in the Freedom Charter that there shall be houses, security and comfort.
A major area which requires enhancement in our comprehensive social security system is the integration of the provision of social services in a systematic manner which will actually be able to enable a developmental transition of the poor to the mainstream economy.

This can be done through an integrated system which has information-sharing capabilities which grants recipients into educational opportunities, employment opportunities, as well as other economic opportunities.
Our social transformation seeks to ensure that the development of our people is anchored by the freedom to realise their potential and for them to be able to be their own liberators.

A critical policy debate which requires Parliament’s Social Development’s portfolio committee, in particular, to grapple with, is to answer a question on the introduction of the basic income grant.

The level of income inequality in our country contributes to the level of poverty.
Asset poverty and landless UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 7 for economic production are also part of the drivers of inequality in our country.

Restoring the dignity of all South Africans is an imperative of the ANC government, in order to improve their wellbeing of South Africans through access to health care, access to education, skills development and a provision of the safety net.
These are democratic gains we should continue to build on through expanding our system to cover for the unemployed between the ages of 18 and 59.

We welcome the Expanded Public Works Programme and other Presidential Employment Stimulus opportunities which will support over 1 million unemployed South Africans.

It will also be able to bode well for the skills development and creating economic opportunities, particularly for our youth and our women.
In order to address inequality, we need to all social partners working government to enable the redistribution of assets and income through transforming economic sectors and creating equal opportunities.

The creation of an inclusive economy is also at the heart of addressing the unequal economic patterns.
The ANC remains committed to advancing social policies which provides the safety UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 8 net for the poor and also to place all South Africans on a developmental path.

I thank you, hon House Chairperson.

Ms B S MASANGO: Chair, the DA is cautiously encouraged to see this very important matter being debated outside election season as has been the case many times before.
One wonders if the magnitude and depth of the needs of the very vulnerable in South African society has really resonated in these hallowed chambers of the otherwise uncaring ANC government.

The fact that we debate this matter today, exactly 22 years since it was mooted via a committee led by Prof Vivienne Taylor, proves that the need has been in our midst and under our very noses for that long.
However, this ANC government has merely looked the other way, hoping it would simply disappear or magically go away.

Among the sections of our population, the most neglected are those who desperately stand to benefit from a comprehensive social security system; those who shoulder the heaviest burden and responsibility to provide for their families.
However, this is the group that is subjected to the most barbaric carrot- dangling strategies during election times, primarily by the ANC Ministers of Social Development, the ANC presidents and at times UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 9 even the ANC Ministers of Finance, not because there were concrete plans to implement the expanded comprehensive social security system but because of the ANC’s need to be heard to appreciate the struggles of millions of South Africa’s poor.
In the year 2000, the ANC government appointed Prof Taylor’s committee to investigate ways for the state to reform the social security system to provide comprehensive coverage for all.

The committee called for the introduction of a range of measures, including a universal basic income grant of at least R100 a month.
The Taylor committee further noted that, as a developing economy coping with the structural legacies of apartheid, South Africa was unlikely to be able to create stable and meaningful employment opportunities for all economically active adults in the foreseeable future.

Twenty years later we are in no better a position than we were.

In fact, if we look at it empirically, we are substantially worse off in 2022.
With levels of unemployment reaching crisis proportions due to gross corruption, the mismanagement of the economy by the ANC government and the recent COVID-19 pandemic, soundbites regarding a basic income grant abound.

Yet, no UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 10 concrete, reasonable plans have come forward.

This display of insensitivity to the plight of millions of South Africans is concerning at best, and cruel and criminal at worst.
Even those who receive social grants are subjected to random annual increases that do not begin to match the exorbitant electricity, petrol, food and transport prices that are increased exponentially.

Households have to make do with a measly R350 grant to put food on the table.

The topic of today’s debate partly says, not leaving anyone behind.

It is a misnomer.
It is a misnomer.

It is the policies of the ANC government that continues to leave millions of poor people in South Africa behind, stuck in endless poverty with no hope of a brighter future.

These policies exclude those who need them most to build a better life but are instead exclusive and lack distributive capacity.

They only create opportunities for self- enrichment for the ANC-aligned elite and well connected.
Those card-carrying cadres are the sole beneficiaries of these opportunities, while the impoverished majority languish outside the boundaries.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 11 The need for a comprehensive social security system in South Africa is not in dispute.

How it is done is what should be of greater concern.
According to a 2004 report of the Basic Income Grant Financing Reference Group, which was entitled, Breaking the poverty trap: “Nearly a decade after South Africa’s historic transition to democracy, pervasive poverty and inequality pose the greatest threat to human dignity and social cohesion”.

This was in 2004, and the threat posed then has continued to play itself out in many protests by various sectors of our society.
This is a stark reminder that the ANC government left a huge section of society behind a long time ago.

Unfortunately, government does not have the luxury of time to ensure that it walks back to the people it has left behind.

It has no realistic solutions to what remains a real threat to stability and cohesion in this country.
It is curiously interesting to note from the same report of 2004 that: To date, government has yet to announce a formal position on the basic income grant or indeed on any of the Taylor committee recommendations.

Instead, it has repeatedly deferred a decision at successive Cabinet lekgotlas.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 12 Given the situation we are confronted with today, it is no wonder that this debate is not evoking the excitement and hope it should, as history might just be repeating itself to the detriment of so many that ought not and must not be left behind if stability and social cohesion are to be preserved in South Africa.

I thank you, Chairperson.


Ms N N SIHLWAYI: Hon House Chair, restoring dignity of the poor and the marginalised through the provision of basic services.

Hon Chair, we come from a very painful past where the majority of South Africans, blacks in general and African people were denied human rights in their country of birth.
The oppressed majority fought against colonialism and apartheid to establish a society founded on the democratic values of social justice and other fundamental human rights to improve the quality of their lives and of all citizens to unleash their potential.

Hon Chair, ... IsiXhosa: ... andimazi u-Taylor.


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 13 English: The Nationalist Party, the Democratic Party ... IsiXhosa: ... nale ngxubevange yanamhlanje ... English: ... have caused an unforgettable human destruction in our motherland.

We will never forget.

The new democratic South Africa was founded within the constitutional principles contained in the Bill of Rights as a cornerstone of our democracy.
The HOUSE CHAIRPERSON (Mr M L D Ntombela): Connection problems.

Hon Sihlwayi, your line of connection is very bad.

Ms N N SIHLWAYI: Can I proceed, Chair?

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Yes, please but your line is bad.

Ms N N SIHLWAYI: Is it not audible?

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 14 The HOUSE CHAIRPERSON (Mr M L D Ntombela): Slightly you are but you keep on breaking but you may continue or move away from that place.
Ms N N SIHLWAYI: Okay, these rights affirm the democratic ... [CONNECTION PROBLEMS.]

The HOUSE CHAIRPERSON (Mr M L D Ntombela): You are now gone hon Sihlwayi, totally inaudible.

Ms N N SIHLWAYI: Let me change the position.

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Hon members, patience please.

Ms N N SIHLWAYI: Hon Chair, I was to say, the democratic state therefore must respect, promote and fulfil these rights as enshrined in the Constitution.

In fact, Chair, it is proper to mention their origin.
The Freedom Charter policy statement of the ANC articulates well a clear vision for our country, by proclaiming equal rights for all who live in it.

The closing statement in the Freedom Charter reads as follows UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 15 These freedoms we will fight for side by side throughout our lives until we have won our liberty.

IsiXhosa: Singangxanyelwa madoda, ama-350 eminyaka asiyondlwane iyanetha.
Siyeza sisendleleni, ningasingxameli.

English: The social cluster therefore denotes the fundamental values of the Freedom Charter towards the implementation of government programme.

Chair, just to raise the issues, which are these rights that we believe are fundamental for our people that should be protected by other institutions and by the state?

The Right to access to adequate housing, section 26 of the Constitution.
In the early 2000s a community was evicted from a land which they had occupied under the then Oostenberg Municipality, now known as Kraaifontein Municipality.

The community sought relief from the courts, and the Cape of Good Hope found that the community were entitled to adequate shelter as enshrined in section 21(1)(c) and both national and provincial government had to intervene to rescue the community and provide the necessary services.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 16 Government of the Republic of South Africa and Others vs Grootboom and Others showed that government had an obligation to act positively in ameliorating the plight of hundreds of thousands of peoples living in deplorable conditions throughout their living.
The court stressed with no certain terms that all rights in the Bill of Rights are interrelated and mutually supporting and the state must ensure that those rights are progressively realised within the available resources.

Typical example hon Chair, that the Minister of Human Settlements is unblocking the blocked projects because those people that have blocked projects do not have adequate housing and therefore government has got to see how best can it address the plight of their people.
This would ensure that no one who deserves adequate housing is left behind.

The second right is the Right to Human Dignity, everyone has an inherent dignity and the right to have their dignity respected and protected.

Chair, gender-based violence is a curse in our country which needs to be addressed not tomorrow but today.
In 2001 for example, two Ministers of the Safety and Security and Justice and Constitutional Development were sued by a complainant who was attacked and abused by someone who was UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 17 released by courts charged with attempted rape.

The woman claimed that the two departments were negligent in releasing the accused and that she had her dignity violated.
It is a duty of the state, therefore to protect women from all sexual violence that they face.

The court considered a potential liability for both police and prosecutor for releasing the criminal with such activities and gave bail that this could amount to wrongful conduct.

How could the police and the courts release an accused who attempted rape, without having proper measures in place to protect the complainant?
The conduct by the police and court officials constitute negligence and should result in consequences.

Now, because of negligence of some officials, the government is now liable for wrongful conduct.

We must ensure that our police and the courts protect those that are vulnerable and marginalized, in particular women and children.

No one should be excluded from the basic services.


We salute the ANC-led government that in this coming financial year, has prioritised the implementation of the national UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 18 strategic plan of gender-based violence and femicide to further promote and empower women in our society.
Three new pieces of legislation have been enacted and signed into law by President Ramaphosa to strengthen the criminal justice system and by putting in place measures to assist the survivors of gender-based violence and femicide.

We commend that no one should be left behind, should be excluded and no one should be erased from benefiting in basic services.

Thank you very much.

IsiXhosa: Bendibuza ukuba imizuzu le yam ibilahlekile iphelele phi?

English: Thank you very much.


IsiXhosa: USIHLALO WENDLU (Mnu M L D Ntombela): Hayi khange ilahleke mama ibikhona.

English: UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 19 Thank you very much.

Ms P MARAIS: Hon Chairperson, allow me this opportunity to wish my Commander-in-Chief and President, Julius Sello Malema a happy revolutionary birthday.

You are loved by South Africans because you care for all.
I also wish to greet the officials of the EFF under the capable leadership of the President and Commander-in- Chief who is appearing before the East London Magistrate Court for a frivolous case by AfriForum, a racist organisation.

We will not surrender the EFF to racists because the EFF is the only weapon in the hands of poor people.

The EFF is the only organisation fighting for the increase of social grants.

We must increase social grants for older persons from R1 890 to R3 780 per month.
We must increase social grants for people living with disability from R1 890 to R3 820 per month.

We must increase social grants for our War veterans from R1 890 to R3 820 per month.

We must increase child support grants from R460 to R920 per month, and we must double all other social grants.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 20 We cannot talk about expanding the comprehensive social security system when the current system continues to subject many poor people to perpetual poverty.

All 12 million beneficiaries in the SA Social Security Agency system must afford decent food and not be visited by hunger now and again, as is the case today.

To be hungry is to live side by side with death.


Black people will continue to be death-bound subjects unless we double their social grants.

While we continue to fight for an increase in social grants, social grants in themselves are not the solution.

Grants are supposed to be a means to an end.

While we appreciate and acknowledge the big difference that social grants make in the lives of our people, it is not the solution.

Our people want decent housing.

Our people need food security.


Our people need to live closer to work, school, places of worship, and recreational facilities.

We will not give our people a decent standard of living and pull them out of poverty through social grants.

The only way to alleviate poverty is to be a country that produces what it consumes and exports anything that we produce, a surplus.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 21 Therefore, all Sassa beneficiaries on social grants must be active members of the economy and must be able to earn a living and not rely on social grants, except children, orphans, war veterans and foster care families.

There is a clear relationship between a productive economy, a growing economy, an economy that employs people, and poverty.
But we know that the ruling party does not have a practical or believable plan that combines social security and economic policy.

Currently, SA Social Security System is merely a payment system.

There is no long-term plan to lift people out of poverty.

To simply add more unemployed and struggling people into the Sassa database will not solve our problems.
While we continue to advocate for some form of grants for all who are struggling, including unemployed people who spend a lot of money to look for work without any assistance.

As the EFF, we maintain that a practical and sustainable solution is economic redistribution, economic growth and industrialisation of South Africa as a whole.

We should not trust the Treasury that continues to cut social grants budget and come here every year to mock our people with R20, R30 and R90 increases.
The sooner UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 22 we remove the parasitic, incompetent and corrupt ruling party from power, the better.

Thank you Chair.

Ms L L VAN DER MERWE: Thank you very much Chairperson, I’ll leave my video off, I’ve got connection issues.
Hon House chairperson, our country is on its knees under the stewardship of the current government South Africa has been crippled by unethical leadership, illegal migration, the disintegration of the rule of law and other ills.

When the leaders of our country fought for freedom, they dreamt of just that.

A country free of poverty, free of fear, free of despair and free of injustice.

Sadly 28 years after the dawn of democracy, we are far from free.
Our people are trapped in poverty, almost half of South Africa’s population counts on some type of grant alone as their only form of income.

They walk the narrow road between hunger and starvation daily.

Our youth have relegated to the unemployment lines; they have been relegated to the R350 Sassa pay out lines while millions more are now discouraged job seekers.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 23 In the phase of this devastation Chairperson, the ruling party tables a debate on expanding the comprehensive social security system today.

Yet despite what the hon Stock said, South Africa is already a welfare state.

Where is the ruling party’s much needed solutions?

Expanding the social welfare system is only a plaster on a gaping wound.
How are we going to lift our people out of poverty and despair and restore their dignity?

Chairperson, that is what we should be debating today.

Let me state this as I’ve done that the IFP supports the basic income grant yet it is very clear that government keeps dangling the carrot that they cannot afford.

South Africa’s current debt burden is at R4,35 trillion.
South Africa’s debt over the next year or two will be projected to be R5,4 trillion, debt servicing fees will be at R268 billion per annum alone thus economic recovery and big might just be a distant dream.

This week a number of Ministers were implicated in corruption and the third Zondo Commission Report.
If our Ministers alongside criminals didn’t devoir the money in our state coffers through corruption, there would be more than enough basic income UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 24 grants.

We need as a matter of urgency to recoup money from all those even our Ministers that stole from the state and by extension stole from the poor.
Chairperson, expanding the social welfare system should first and foremost focus on the child support grant with whatever increased cost of food, caregivers are often forced to skip meals because they cannot afford sufficient food.

It is against this background that IFP calls for an increase of the child support grant which currently stands at R480.00 per month well below the food poverty line of R624 per person per month.

Expanding the social also comes with strengthening the Sassa system.
For far too long, millions have been side lined from Sassa by criminals both within and outside government.

If we could remind ourselves that today to date, not a single government official has paid back a single cent stolen when they collected a R350 grant and other grants unlawfully.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 25 Chair, finally, our immigration system has collapsed due to the failures of the Department of Home Affairs.
Far too many non- citizens have taken employment without being legally permitted to do so.

The IFP has proposed changes to the employment services Amendment Bill through Private Members Bill.

We would like to see South Africans, especially young prioritised in the low skilled market.

We are happy that government has heard our please and the Department of Labour is piloting similar legislation which looks to get South Africans to work.
Let us change our thinking from wealth estate to a state that considers the welfare of its people and puts them first.

Thank you Chairperson.

Ms T BREEDT: Thank you Chairperson.

Chairperson, the continuation of the R350 SRD grant will cost South Africa R44,4 billion in the coming financial year.

It means that in all spending of social grants for 2022/23 will increase to an unprecedented R364,4 billion.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 26 In other words, 3,9% of our GDP or 48% of this coming year’s budget will be spent on social wages.

The Minister of Finance was very clear last week that the R350 SRD grant will only be extended for the next 12 months even when taking Cat into account, it is still estimated that over the next three years, the social wage will take up 59,4%, that’s almost 60% of the government’s entire non interest spending.
Then the hon Stock wants to expand the comprehensive social security system to where, with what money, how, where will we get the money from?

We currently have to borrow money to be able to afford our current needs.

The question of today’s discussion of is in essence incorrect and is a testament to what is wrong in South Africa today and the government style of the ANC.

The focus should not be having more people dependant on social security but less.
The topic of today’s discussion should have been; what reforms are made necessary to not leave anyone behind but ensure self - sustainability.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 27 The Minister of Finance preaches pension reform but we should be careful when as Parliament we consider this.
We do not want to create a situation where more and more people will be reliant on government in their old age because they spent their pension funds during these current tough times.

This will create a vicious cycle.

As is currently the case with our current old age recipients do not even receive the minimum wage and can therefore not even afford the most basic of needs.

If they do not have family or children to support them, they are as good as dead.
What will then happen to our parents and our grandparents if we do pension reforms that the Minister preaches if we allow this to happen.

And to to add to the gloom Chair, it has recently been announced that the teacher retention rate in basic education is worsening.

That means the student, teacher ratios will be greater in future.
Further meaning a greater percentage of unemployed teachers but also the greater number of students not receiving the necessary attention in schools to ensure proper employment UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 28 in future.

This of course means more people reliant on government and of course you understand the rest of that cycle.
The hon Stock in his comments will most probably not see anything wrong with this because that would mean an increase in the welfare estate which they think is good.

Chairperson, the focus should be that of education, empowerment, self-sustainability and a conducive environment for the private sector to create jobs.

We should move away from thinking that welfare is the only option to our citizens in the current devastating position.

We should start thinking of prosperity, wellbeing and success.
It is then and only then when we will realise what needs to happen that our focus needs to shift, that laws need to be created to encourage job creation and entrepreneurship and not to start entrepreneurship economic growth and I will conclude with age old saying, give a man fish and he eats for day but teach a man how to fish and he eats every day.

Chairperson, I thank you.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 29 Ms M E SUKERS: Thank you hon Chair.
I wish to state that the ACDP supports temporary relief for those in need.

We cannot however make it permanent state that disables individual agency and human development of the young, healthy and able body.

It is important to refer back to the report of the high level panel on the assessment of key legislation and the acceleration of fundamental change.

One of the key recommendations referred to building human capabilities to enable economic participation, social cohesion and engage citizenry.
Government must not do what the individual and community can do for themselves.

We have to with urgency attend to barrier that exist for adults to enter skills programmes and further learning.

The continued delay in implementing the nation senior certificate for adults is one such a barrier.

There is not one person in the House that does not agree on the need for an effective and holistic security safety net for the vulnerable.
However, we face the challenge of an untransformed sluggish social development system.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 30 In addressing social security and the expansion thereof, there is a very important element that must be discussed and it is the element of goodwill.

Government should not and cannot go with it along in providing an effective plan to address the deepening crisis of poverty and its devastating impact on the psyche of our people.
Goodwill has been eroded and it led to the resistance of plain exhaustion of the taxpayer and serious social development partners.

This is a challenge in creating a comprehensive social security system that is not only government dependent.
The second challenge is the misuse of capacity programmes aimed at upliftment, patronage and the ever expanding supply chain network to repair votes and buy loyalty is bankrupt political strategy that abuses EPW programmes and NPO funding and here in the Western Cape to Limpopo right nationwide.

Remove corruption and the perverse political strategy from funding and social development programmes, transform the civil service, and this is project that must be embarked upon before you talk expansion.
A corrupt system will deepen the crisis and UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 31 exhaust the badly needed goodwill in order to create temporary safety nets for the poor and those who need it the most.

We have to break generational cycles of poverty by transforming the system.

Thank you Chair.

Mr B N HERRON: Chairperson, the level of inequality is South Africa’s greatest existential threat.
It is not only unjust, given the history from which our democratic country emerged, it is wholly unsustainable.

It has created a social tender box that of deprivation and division, and last July we witnessed the ease with which this box could be ignited.

Dismantling the deeply entrenched divisions that keep South Africans apart must be our single overarching priority.

The truth is that our economy is unable to generate enough jobs to reduce, let alone, eliminate unemployment.
This leaves millions of South Africans without an access to an income.

A combination of unemployment and poverty has led to increased and indescribable hardship where poor families are starving and scavenging for food.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 32 The country cannot afford not to address these people’s plights.
South Africa has a well-established social assistance programme of cash transfers but the programme excludes millions who are 18 to 59 years old the assumed age of economic activity.

Section 28 of our rights based Constitution guarantees every person the right to sufficient food, water and social security.

It is in this context that the debate about a basic income guarantee or grant must be understood.
When an economy is unable to provide enough jobs for people to earn an income and take care of themselves financially, then the state has a duty to provide some social security.

This is not a gift nor a handout; it is a right.

The social relief grant that has been providing nearly 10 million beneficiaries with some cash transfers is welcome, and we welcome the extension of it as a first step bur we need to progress from here and provide a permanent safety net for those who need it.
The question of the quantum of that safety net is continuously challenging.

The most recent data published by Statistics SA UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 33 shows that the food poverty line is R624 per month per person.

This is the amount of money a person needs to purchase the minimum daily food required to live.
So, the fastest way to achieve a comprehensive social security system is to start with a basic income grant at least the food poverty line.

Obviously we must address affordability.

Chairperson, if you start from the premise that no adult can be expected to live without any income, then you stop asking how we can afford it and start asking how we can afford not to.

We are not unaware of the current financial constraints — it is a matter of prioritisation.
If the Minister of Finance follows through on the plan to introduce zero base budgeting and identifying our absolute priorities, it will free up significant savings.

The introduction of a basic income grant is the only way to directly address the growing epidemic of deprivation, hunger and malnutrition.

Thank you.
Thank you.

Mr K L JACOBS: Hon Chairperson, in order to create a prosperous society with a sustainable and equitable economic development and to improve productivity for growth, the health of the citizens is the wealth of the nation.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 34 The aspirations of the 2030 Agenda are based on inclusiveness and ensuring that no person is left behind which is in line with the theme of this debate.
In the same breath, the vision for the health sector is to ensure a healthy nation for all South Africans.

This further emphasises the importance of achieving universal health coverage by ensuring that every South African has access to health care services regardless of their socioeconomic status.
At the essence of human development there are three principles that are directly linked to economic development; to live a long and healthy life, to acquire knowledge and to have access to resources needed for a descent standard of living.

South Africa has a comprehensive social security system as a response to imperatives of human development.

Over the democratic order we have expanded basic services in both the urban and the rural areas, particularly for the marginalised.
Health and economic development are interdependent, presenting an important opportunity through the National Development Plan, NDP, to integrate health within goals of broader socioeconomic development.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 35 The NDP goals are aligned to the Sustainable Development Goals and to the AU Agenda 2063 aimed at millions of South Africans having improved living conditions in a context where, for historical reasons, South Africa is amongst the most unequal societies, but much progress has been made in critical areas such as the provision of clean water, electricity, sanitation, education and health.
Despite this progress the poorest and most vulnerable people are left behind.

This means that there remains a need for investing in the poorest and most marginalised towards universal health coverage.
In 2016 the World Health Assembly, WHA, issued a ground breaking revolution together with the Rio Political Declaration on Social Determinants of Health which commits countries to build momentum or speed for the development of dedicated national action plans and strategies to deal with exclusion, in access and social determinants of health in order to reduce health inequities.

The WHA Rio resolution recognises the fragmentation that offer resource public health system.

It underscores ...

[Inaudible.]


... that leaves many people behind, underscores the African UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 36 Charter on Human and People’s Rights, the Declaration of ...

[Inaudible.]

... and the World Health Organisation’s constitution.

All of which call for ...

[Inaudible.]

... take full responsibility for the health of the people.

Hon Chairperson, the universal health coverage then becomes of paramount importance.
It seeks to provide a preventive health scheme shall be run by the state.

Provision of free medical care and hospitalisation for all with special care for mothers and young children.

This is what guides the ANC on the realisation of the National Health Insurance.

It is in this context that South Africa is currently in the process of reforming its health systems through the NHI to achieve the following outcomes.
An improved access to quality health services for all South Africans, irrespective of whether they are employed or not.

Pool risks so that equity and social solidarity would be achieved through the creation of a single fund.

Procure services on behalf of the entire population and efficiently mobilise and control financial resources and to improve health systems performance and for everyone to experience universal health coverage.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 37 South Africa’s ...

[Inaudible.]

... the implementation of the Sustainable Development Goals through the Domestic Developmental Agenda and Policy.

To have a good health is essential to sustainable development and the 2030 Agenda reflects the complexity and interconnectedness of the two.
It takes into account widening the economic and social inequalities, effort urbanisation, threats to the climate and the environment, the continuing burden of HIV and other infectious diseases and emerging challenges such as COVID-19 and noncommunicable diseases.

South Africa has made great progress in developing health outcomes, for example, increasing the life expectancy of South Africans such as decrease in the leading causes of death ...

[Inaudible.]
[Inaudible.]

... reducing maternal mortality rate, under-five mortality rate, neonatal mortality rate ...

[Inaudible.]

...

Decrease in new HIV infections and incidents of ...

[Inaudible.]

... A lot still needs to be done to realise the number of ...

[Inaudible.]
In conclusion, Chairperson, research has shown that achieving the SDG targets depends on collaboration between stakeholders, UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 38 government, private sector, civil society, academic research institutions and international organisations working together with all stakeholders and partners we can ensure that the goals that South Africa has already met are sustained and that the progress made before the pandemic does not roll back.
Out health care system has demonstrated its capacity through the coronavirus pandemic which is a security health risk to the nation.

Finally, Chairperson, we call on all people who have not vaccinated to please be vaccinated.

Remember that vaccination saves lives.

Thank you.

Mr M G E HENDRICKS: Al-Jama-ah congratulates the hon Marais on the revolutionary maiden speech on the birthday of her commander-in-chief – happy birthday hon Julius Malema.
In his first Sona address, President Ramaphosa announced that every family will get a warm plate of food and no one will be left out.

After his third Sona, this has been done.

Congratulations, President Ramaphosa.

Well done.


President Ramaphosa to expand the social security system, launched the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 39 Expanded Public Works Programme, EPWP, matriculants helping out in schools, and Home Affairs using graduates to do scanning.

These are not decent jobs but expanding the social security system.
To expand the social security jobs, President Ramaphosa must get call centre jobs in our 10 000 villages.

The first step is to get successful bidders for the spectrum to provide free data to the villages and the Department of Communications and Digital Technologies to launch a satellite internet where the towers cannot reach.

The bidders who have satellites must be given preference in allocating the spectrum.
Village children can work as call centre agents from home to expand the social security system by this employment scheme so that no one is left out.

No one must be left out from earning a living, even just to put a loaf of bread on the table.

Mpame village, where I also live, is also ready for a call centre poverty alleviation scheme.

Thank you very much, hon Chair.


Mr A M SHAIK EMAM: Thank you, House Chairperson, I must agree with Dr James that, in fact, a lot of progress has been made in UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 40 the last 27 or 28 years in the country, but at the same time, hon House Chairperson, we must admit that with 46% of South Africans on some form of social assistance, we cannot expect not to leave anyone behind.

When there is 34,9% unemployed and ...


[Inaudible.]

... about 42% unemployed, we cannot expect not to leave anyone behind.

When 70% of our youth in this country are unemployed, we cannot expect not to leave anyone behind.

When seven million people go hungry to bed, we cannot expect not leave anyone behind.

What South Africans are not looking for is a handout.

What South Africans are looking for is an opportunity to be part of an inclusive economy.
What South Africans are looking for is a position to be able to find themselves suitable jobs so that they do not depend on our handouts.
I have heard people talking about one thing – to increase grants and some particular amounts of money – the question is: Should we not be concentrating on how we must reduce the number of people in this country dependent on social assistance and make the rest of them, particularly the younger generation, more UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 41 productive?

That is basically what we should be concentrating on.
House Chairperson, 79 cents estimation – and this is an old list – out of every rand in this country is debt service books and public sector wage bill, which means 21 cents is spent.

Of that 21 cents, 11 cents are on corruption and looting, which means we spending 10 cents in this country on delivering services to the people on the ground.

How are you going to have a more inclusive government economy if you are going to spend only 20 cents out of every rand on improving the quality of lives of our people?
The question is: Is it sustainable to have ...

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Hon member.

Mr A M SHAIK EMAM: Is it my time?

The HOUSE CHAIRPERSON (Mr M L D Ntombela): No, you can continue, hon Emam.

Somebody was disturbing us.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 42 Mr A M SHAIK EMAM: Thank you, House Chairperson.

I have been doing some homework, particularly on some of the major changes ...

[Inaudible.]
[Inaudible.]

... particularly from the 20th of the month.

If you look at the exorbitant increases in the price of goods and every supermarket you go to - I can name a whole lot of them – you’ll find the prices are the same ...

[Inaudible.]

... With food prices and fuel price rising ... and remember, many of our people - like the previous speakers have said – rely on public transport to get to work.

If a great percentage of ...

[Inaudible.]

... what have they got to live on?


Thank you very much, House Chairperson, I have run out of time.

Ms N T MKHATSHWA: Good afternoon House Chair.

May I just please kindly have an indication whether or not the ANC has any remaining minutes from our previous speakers.

The HOUSE CHAIRPERSON (Mr M L D Ntombela): I will check, the will inform me, for now up to so far I am not very sure.

The staff will indicate then.

Ms N T MKHATSHWA: Thank you very much.


Hon House Chair and members, and most importantly fellow South Africans UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 43 sanibonani(greetings).

We are gathered this afternoon to debate the motion on the expansion of a comprehensive social security system, and ensuring that no single South African is left behind.
We debate this motion in the month of this young democracy of ours, commemorating the Human Rights Day on 21 of March.

I find it rather symbolic as at the core of social security systems, is the protection of citizen’s human rights by acknowledging the need to uphold the dignity of citizens, considering the socioeconomic, political disparities and inequities that confront them.
Looking at the context of South Africa in particular, our comprehensive social security system exists with an appreciation of the need to address the structural inequities, deeply rooted in the apartheid regime, total disregard for the basic human rights of black people in this country.
The Background Paper on Social Protection issued by the Presidency reminds us that, government social protection framework is built on the principle of comprehensiveness and thus income support social services, social insurance and the provision of free basic services to vulnerable households UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 44 constitute governmental holistic approach to addressing poverty.
The right to social security must be appreciated within a broader context of government striving to alleviate immediate vulnerabilities.

However, with the medium to long-term goal for the realisation of self-sufficient citizens.

Hon members, and I'd like hon Breedt and a number of other hon members who spoke earlier to listen attentively to what I am about to say.
In advancing a comprehensive social security system we must appreciate as alluded to in the National Development Plan, NDP the importance of access to education in empowering citizens to be active participants of the economy.

The Bill of Rights of Africa states that the right to education, education which the ANC has resolved remains an apex priority of government’s ... [Inaudible] ...policies and an essential pillar of our fight against the triple challenge of poverty, inequality and unemployment.
The ANC further notes that, failure to accelerate inclusive access to education and training, directly threatens the achievement of this key objective.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 45 Hon members, key elements of our comprehensive social security system must include free education for those who cannot afford which it does, as education is one of the cornerstones of development.
The acquisition of skills and knowledge through education enhances citizens’ capabilities in advancing equality, poverty reduction and economic growth, thus breaking the chain of poverty across generations.

Inclusive access to education can be realised when free-fee education in this country, fee waivers in this country, scholarships, block grants, supported by nutrition feeding schemes, scholars’ transport, free textbooks and educational resources, student allowances and stipends to mention but a few.
Appreciating that education as part of the comprehensive social security system, is an investment to the country’s developmental state agenda, South Africa has allocated in this year alone, a significant budget of R441,5 billion towards learning and culture.
In the basic education sector, government has attempted to create safety nets through free education, fee waivers, feeding schemes, scholar transport free textbooks and learning materials UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 46 to mention but a few.

A comprehensive social security system appreciates the school nutrition programme, in the fact that it assists in ensuring the nutrition of children but also increases school attendance.
This is supported by a budget allocation of R26,7 billion over the medium term for 19 950 schools.

Over the medium term, R6,7 billion is allocated to infrastructure grants.

In the higher education sector, government has attempted to create safety nets through the state funded interventions, such as the National Research Foundation, Funza Lushaka Bursary Scheme and the National Student Financial Aid Scheme to mention but a few.
An estimate of R4,1 billion has been allocated to Funza Lushaka with the aim of providing more than 36 000 bursaries over the medium term.

One hundred and forty-three point three billion has been allocated to National Student Financial Aid Scheme, Nsfas over the medium term, benefiting an estimate of 2,5 million students over the next three years.
So, contrary to the notion that the government recklessly aims to create state dependent citizens, these safety nets within the border education system aim to empower citizens with skills and UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 47 knowledge to participate in the alleviation of deeply rooted social conditions, such as widespread poverty, significant levels of income disparity, vulnerability and exposure to risk.
However, this is not expressed loosely without an appreciation of a high unemployment rates, including the high graduate unemployment rates in this country.

The Green Paper on Comprehensive Social Security and Retirement Reform 2021 articulates that, unemployed adults aged 18 to 59 account for about a quarter of those living in poverty.

It further states that social assistance does not currently address the need for those who are unemployed without any means of support.
The paper recommends active labour market interventions with allowances linked to skills development, and the Expanded Public Works Programme, further education and training and youth unemployment programmes.

The biggest challenge we have is that, whilst the state attempts to address systemic inequities through the provision of skills and knowledge, the economy is not receptive to the increasing numbers of skilled and knowledgeable citizens.
This is concerning as it may exacerbate income and opportunity inequalities, increase poverty and possibly lead to the false idea that there is no value add on educational investments.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 48 This is where we must act as taught by President Cyril Ramaphosa on ensuring that industry plays its part in job creation, whilst the state coordinates plans and guide the development of the economy.
This must be supported by a continuous audit of the skills need of a country’s economy, and complements thereof in the curricula of both basic and higher education.

This must be appreciated with an understanding that modern social security system must be designed to support job creation, by eliminating measures that discourage labour market participation and establishing mechanisms that promote social integration.
Hon members, President Cyril Ramaphosa reminded us in the state of the nation address and in his response to the debate thereof that, we ought to leave no one behind.

That is why it is important for us to see the progressive expansion of our comprehensive social security system, that will respond to society’s varying levels of risk.
We must also state that in order for citizens to feel that they are not left behind, we must ensure that safety nets are easily accessible, and that there are measures put in place for them not to be abused.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 49 There must be modern technology, strengthen the master social security registry and build on the consolidated Social Security fabric interface.
That is why we welcome the collaboration between SA Social Security Agency, Sassa and Nsfas to ensure that a student coming out of basic education, who is a Sassa beneficiary does not have to be subjected to the dignity stripping exercise or perpetually having to prove their indigence, but rather the Nsfas system will automatically identify the application and grant them a real time offer.
In leaving no one behind, we must commit ourselves to improving access coverage, administrative efficiency, delivery and transparency and expansion of a comprehensive social security system.

Hon members of the DA, hon Masango, you say you want your cautiously encouraged.

I want to implore on you to decide whether or not you are coming or going.
I think the President hon members ... and listening to many members that are contradicting themselves as well as colleagues from hon Van der Merwe you speak about it being a plaster but at the same time you’re advocating for these grants and also advocating for an UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 50 increase in funding allocation, even hon Breedt.
Members are seemingly coming or ... IsiXhosa: ... andiyazi nokuba niyeza okanye niyahamba ... English: ... you are coming or going, I don’t know what's going on there.

What I mean to say to you is that, we must be reminded by the President’s state of the nation address when he said: There are moments in the life of a nation when old certainties are unsettled and new possibilities emerge.

The President says: “In these moments, there’s both the prospect of great progress and the risk of reversal”.
Let members be reminded that, the path we choose now will determine the cause for future generations.

I want to appreciate the healthy engagements, that hon ... [Inaudible] ... have articulated.

I mean, he clearly state that social securities are not a gift, they are rights.
Therefore, UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 51 anyone who seeks to undermine the importance of social security and want to loosely allude to them as us as the ANC government, creating a ...[Inaudible] ... estate in fact ...[Inaudible]... on the point of, of class privilege.

We understand the importance of these social security systems ... [Interjections] ... that colleagues will in future engage more healthily in these debates.
I thank you House Chair.

Ms A L A ABRAHAMS: Chairperson, this topic of debate is something of déjà vu.

It is a topic debated in this Parliament before with consensus the social security system must be all inclusive.

The reality for those who live in situations of excruciating poverty and deprivation is that the values and rights enshrined in the Bill of Rights and Constitution such as freedom, equality and human dignity have not yet been fully realised under the ANC.
Far too many destitute South Africans are still excluded from receiving grants, government services and unable to fully participate in the country’s economy and society despite 28 years of democracy.

Millions of South Africans are already left behind such as our vulnerable children not yet old enough to vote invisible to the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 52 ANC.
An amount of 17,5%, over 1,8 million eligible children cannot access the child support grant.

One in four children, 27% under the age of five is stunted.

It has been like this since 1999.

What of these children left behind all while the ANC donates R50 million to Cuba?

An estimated 3,4 million children aged 0-6 years cannot access an early childhood development programme, ECD.
They too are left behind by the Department of Social Development, with little hope the Department of Basic Education will see much improvement.

Not to mention the Department of Social Development’s inability to pay the R496 million ECD Presidential Stimulus Relief Fund announced two years ago.

An amount of R351 million already rolled over from last year hangs in the balance as we draw to the end of the financial year.
The Social Assistance Act was amended two years ago and I was relieved to hear the Finance Minister make mention of the child support top-up in his Budget Speech.

However, if the measly increases to grants is anything to measure by, the value of the top-up may not serve it’s desired purposed.
Perhaps Cabinet should take a stroll down the baby toiletry isle or the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 53 stationery and school uniform section to get a realistic idea of the cost of raising a child in South Africa today.

The DA maintains its position that the child support grant must be in line with the food poverty line.
The ANC at the wheel for 28 years has left government institutions incapable of delivering an all-inclusive, all access social security system with the ANC themselves the primary obstacle.

Government is fragmented in the delivery of the basket of services to the destitute.

Before one can access the SA Social Security Agency, Sassa, grant, tertiary education or employment, a birth certificate or ID is required, a known failure of Home Affairs.
The bankrupt SA Postal Service, further burdens the poor with increased travelling expenses to the next service point as more offices close.

We speak of a social security floor, but the only floor many know is the concrete payment outside of SASSA.

The absence of a central information management system, a one stop shop, sends South Africans into a maze of nondelivery, leaving people behind.
Social security cannot be looked at in isolation and UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 54 requires a whole of government and society approach.

In times of crisis South Africans open their hearts and donate generously.

Nongovernment organisations, NGOs, in particular are on the frontline shouldering the burden of government service delivery failures yet are first on the chopping block when it comes to budget allocations.
The 2021 Social Security Peer Review shows South Africa is rich in civil society partners who should play the dominant role is shaping the policy space for social security.

I just hope Minister Zulu takes the recommendations to heart and it was not just another annual performance plan, APP, tick box exercise.

South Africa is a signatory to range of international treaties, declarations and conventions on the issue of social security and poverty alleviation.
The ANC’s own National Development Plan has a vision for a comprehensive social protection floor by 2030.

But without concrete implementation plan South Africans will continue to languish in poverty with nondelivery the only certainty.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 55 The social contract which the President spoke about in his state of the nation address, Sona, address, can only be built on the foundation of trust.
The ANC has time and time again broken this trust.

Therefore, the only way to honestly leave no one behind is through a new government in 2024.

The DA once again invites all to read our offer and solution to addressing inequality in our economic justice policy.

A sustainable development goal model.

A plan for South Africa to beat the past and build the future.

I thank you, Chairperson.


Mr W M MADISHA: Chair, we need a comprehensive social security system that has the capacity to create a set of benefits that are guaranteed for larger sections of vulnerable South Africans.

I here refer to millions of the poor and the unemployed.

I must remind you that South Africa is considered to be number one in the whole world when it comes to unemployment and yet only 1% of South Africans owns 41% of our country’s wealth.
The presently proposed social security system lags a coherent inclusive platform for a restructured system that involves especially millions of vulnerable South Africans.

It lags an inclusive and comprehensive system which is long overdue.
It UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 56 lags a clear vision of how a government will counter what already overflow in the department, namely, maladministration, corruption, loss of public confidence, individual greed and many more challenges.

It is more interdepartmental and multitier.

It lags the capacity to create a set of benefits that are guaranteed for larger sections of the vulnerable South Africans.
I must emphasise that the issue of joblessness that you have sited goes very far beyond what’s purported and something must be done.

The majority of people who are given jobs are non-South Africans because those who employ them can exploit them very easily.

The employers do not follow the Labour Relations Act and all those particular laws that are supposed to be followed.

One supposes the objective of implementing the child support grant and the basic income grant.
It is a fact that in the milieu which we exist South Africans will continue to die unless they are implemented.

But the question that we must ask is, when will this be done because our people are swimming in a very serious sea of poverty and death?

Thank you very much.

Mr D M STOCK: Thank you very much, hon Chairperson.
We have heard from different debaters of this motion: Expanding the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 57 comprehensive social security system.

We all agree that we need to improve and transform the conditions of the majority who have been marginalised by colonialism and the apartheid system, which ensured that it deprived the blacks and Africans in particular.
All these deprivations are the legacy of apartheid which should be addressed by the ANC democratic government, to equalise the inequalities that we find throughout our country.

The ANC from the Reconstruction and Development Programme to the National Development Plan, NDP, has placed the provision of social services and expansion of a comprehensive social security at a high level, which is very consistent.
As the ANC, we have made an imprint in the fibre of the nation, we entrench ubuntu, by being the caring government.

The government has walked with all the social partners from business, labour, civil society organisations, traditional leaders and the people of South Africa in general, to build a society which guarantees a wellbeing and social protection of all its people.
Hon members and House Chairperson, Dr Kenny Jacobs has actually clearly outlined the efforts of government in ensuring access to healthcare for all South Africans and also a National Health UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 58 Insurance, NHI, for all South Africans.

This is going to guarantee access to quality healthcare and various specialisation for the poor, which will actually be market driven.
There is a progressive policy which the ANC has committed itself to realise in the near future.

Hon Mkhatshwa has also outlined the intervention in education and skills development to improve the nation’s human capabilities in order to build developmental state and inclusive society.

We must never tell untruths to the people of South Africa, and claim that nothing has not been done to change the living conditions of the poor.
We can also not claim that all the challenges affecting our people, have been resolved.

But what is a fact and a least reality for many South Africans is that, we have changed a lot of systemic social and economic variants which reproduced poverty throughout our people’s lives.

Our programme of social transformation for self-liberation is indeed on course.
We need to ensure that we radically transform the economy of the country in order to build an inclusive economy which will address the racial nature of distribution of assets and income.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 59 Socio-economic transformation is imperative to guarantee the socio-economic rights of all South Africans.

Economic growth should be redistributive through growth of labour intensive industries and high productive centres.
The government has expanded social wage, and the private sector working with government and labour, can increase job opportunities and reinvest in the economy for the economic growth to increase our tax revenues and to further expand the social protection.

The President of South Africa, hon His Excellency Mr Ramaphosa has called on all social partners to engage on a Base Income Grant, BIG.
Hon Masango from the DA, does not tell the people of South Africa that the ANC government has ensured that nearly half of the population currently receives at least one social grant from the state implementing imperatives in the tailored report which was commissioned by the ANC government.

The household income of the poor is secured through our comprehensive social security system.
This hon member from the EFF who has actually participated in the debate through her maiden speech, has actually made contributions, but because it’s her maiden speech, I will UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 60 actually not respond to what she has said in the debate.

We will actually be able to attend to those issues in the next debate.
Hon Breedt from the DA, our comprehensive social securities anchored by education and expanding skills development, is not limited to grants, ours is empowering the poor for self- liberation.

We have largely agreed in this debate that we need to provide a safety net through a Basic Income Grant for the poor, except from the FF Plus, for obvious reasons, of course.
As the legislative arm of the state, we need to continue engagement and mobilise social partners in forging a pathway for Basic Income Grant to transition grant recipient into a labour market in education and also skills development opportunities.

We should also play our oversight function to ensure that government programmes achieve their outcomes, because fiscal allocation by government can bring about a change and also leave no one behind.
Hon Chairperson, let me thank all the members who have actually participated to the debate, and who have actually made positive contributions in the debate.

Unfortunately, to those who came to UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 61 the debate to play politics and to just and to just flirt their party line, I’ve got nothing to say to them, but I just hope that they will change.
Next time, when issues if this magnitude, issues that are before us which are very important, they must be able to put their party line aside and be able to build on an issue at hand.

Thank you very much to all those who have made contributions, and I also thank you very much, hon Chairperson.

Setswana: Ke a leboga.

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Thank you, hon Stock.

Hon members, that concludes the debate.


We shall now proceed to the second session of this mini-plenary session, which is the subject for discussion in the name of hon K J Milleham, on the negative impact of the rising costs of electricity and other forms of energy on the Republic.

I now recognise the hon K J Milleham.


THE NEGATIVE IMPACT OF RISING COSTS OF ELECTRICITY AND OTHER FORMS OF ENERGY ON THE REPUBLIC UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 62 (Subject for Discussion) Mr K J MILEHAM: Chairperson, South Africa and her people are suffering.

It’s not just the days and weeks without electricity that affect us, but also the spiralling costs.
We are expected to pay, and pay, and pay, and pay, for an entity that can only keep the lights on and its generation plants running 59% of the time, according to the latest Eskom System Status Report.

Eskom’s tariff has increased by 9,61% over last year’s tariff.

And while that was significantly lower than the 20,5% Eskom had requested, it is still more than double the country’s official inflation rate.
It was only through the sustained efforts of the DA, the various municipalities where we govern, and civil society organisations, that Nersa heard the call to limit Eskom’s increase.

And yet, given that Eskom and Nersa are once again in court arguing over the tariff determination methodology, we await the court’s judgement to hear whether a further R59 billion will have to be recovered.
If so, consumers and businesses will once UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 63 again be expected to foot the bill for ANC mismanagement, incompetence and corruption over many years.

One only has to look at the mess that are the Medupi and Kusile coal plants, to see what happens when comrades and cadres are permitted to loot freely.
Let us not forget that much of our electricity pricing issues arise from Eskom debt incurred to build these two power plants, and facilitated by the likes of Chancellor House and Hitachi Power Systems for the benefit of the corrupt and thieving ANC.

And it was done on the watch of one Samson Gwede Mantashe, our esteemed Minister of Energy, who at the time was the Secretary-General of the ANC, and intimately familiar with the dealings of Chancellor House.
These two mega plants which were supposed to end load shedding, have an energy availability of just 63,3% at Medupi and a shocking 24,5% at Kusile according to the most recent data available.

Chairperson, the price of 95 Octane petrol has increased by 44% since January last year.

In the same period, diesel has increased by 13% and illuminating paraffin by 20%.

At the time that the Basic Fuel Pricing model was introduced in 2003, South Africa was a net exporter of refined petroleum products.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 64 Over the past two decades, however, that situation has changed dramatically, and the country is now a net importer, and given the recent closure of four of South Africa’s refineries in the past two years, the situation has only worsened.

As a result, the Basic Fuel Price Model is no longer the appropriate methodology to determine the price of liquid fuels.
It is absolutely unacceptable that a full third of the price we pay for petrol goes into government coffers, not to secure our energy future, but rather to pay for general government’s expenses.

This is not a caring government.

It is a government that is robbing consumers to pay for its own flagrant excesses, wastefulness and corruption.

[Interjections.]

AN HON MEMBER: Where is the robbery?

Mr K J MILEHAM: Sorry, Chair.

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Hon member, please don’t do that.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 65 Mr K J MILEHAM: Don’t do what, Chair?

The HOUSE CHAIRPERSON (Mr M L D Ntombela): No, there’s a person who has just disturbed us.

Please go on, hon Mileham.

Mr K J MILEHAM: Thank you, Chair.

In this regard, we are pleased that Minister Mantashe has heeded our request to comprehensively review both the pricing of liquid fuels and electricity.
We welcome his acknowledgement on Tuesday that high energy prices are perpetuating energy poverty, and that the formula used by Nersa to determine the price of electricity is, to quote the Minister, “backward”.

Yesterday on Radio 702, Dr Dale McKinley, a noted political economist said, speaking of the war of Russian aggression in Ukraine: It’s not just at the fuel pump that we are going to feel this immediately.

There is a huge range of knock-on effects.


It goes across the board and it hits the consumer very hard.

It seems we are far away from this political war in Europe.

Economically, it’s a global issue and particularly for South Africa, it’s going to hit us very UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 66 hard, and it’s going to hit most obviously those who are least able to afford it.
The reality is that we have not yet begun to see the impact of the despicable Russian invasion in Ukraine in fuel pricing.

That will only really impact on next month’s prices and one aspect that has not been considered is the impact that this will have on electricity pricing.

Remember that we use diesel to fuel Eskom’s peaking plants, many of which now run almost 24/7 at great expense to keep the lights on and minimise load shedding.
In fact, Chairperson, if we were to allow more competition, ease the difficulty of doing business, and reduce the heavy- handedness of government price setting, we would undoubtedly be in a far better position economically.

Instead, government takes its cut on every litre of fuel and kilowatt of electricity, and as a result, businesses are closing their doors, citizens are becoming unemployed and more South Africans are seeking greener pastures.

This government has a lot to answer for.


The rotating door of Ministers of Energy has done little to resolve the crisis, whether of generation capacity or UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 67 electricity and fuel pricing, because the Ministry is captured by the same disease that affects everything the ANC touches: a complete lack of accountability and willingness to accept the consequences of their actions.
Nearly every entity in the Department of Energy is in the red.

The Auditor-General has repeatedly highlighted supply chain management issues and irregular expenditure.

The department and its entities fail to meet the most basic of key performance indicators, and yet somehow, life goes on and no one is held responsible.

In the meantime, it is ordinary South Africans who continue to suffer.

And so we get to the nub of the matter: What is to be done?
We need to address the affordability of refined fuels and electricity in a manner that ensures meaningful systemic change, and does not merely pay lip service to resolving this issue.

When the prices of fuel and electricity increase, every other product and service becomes more expensive as a result of the knock-on effect.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 68 Ordinary South Africans struggle to satisfy their daily needs, whether that’s transport, heating, cooking, lighting, manufacturing or countless other activities.
The cost of living in South Africa has become unaffordable, primarily because of above inflation increases to fuel and electricity prices; costs which are, if not totally in the control of government, are certainly far more susceptible to government manipulation and management than in a deregulated economy.

The DA has been clear and unequivocal in its call on national government.
Unbundle Eskom and create a truly independent grid operator; open up the grid to competition, and remove the cap on renewable energy generation in the Integrated Resource Plan; make it easier, through a concerted red-tape reduction programme, for municipalities, businesses and consumers to either generate their own electricity or to procure directly from independent power producers; and incentivise the importation and local production of electric vehicles to reduce the reliance on refined fuels; deregulate the fuel sector and allow the free market to determine pricing and more specifically, get rid of the unaffordable taxes and levies that government use to cover their incompetence and corruption; and UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 69 abandon all plans to purchase Sapref or other refining capacity.
Government has proven over and over again that it cannot run businesses effectively, and a massive investment would be required to bring this plant up to the proposed clean fuel standards.

Chairperson, South Africa cannot afford to wait for another government talk shop, indaba or task team to address the crisis of affordability it now faces.

If Minister Mantashe is not up to the task of addressing the problems in our energy sector, he must go!

Thank you, Chair.

Mr T B MUNYAI: Point of order, Chair.


The HOUSE CHAIRPERSON (Mr M L D Ntombela): What is your point of order, hon member?

Mr T B MUNYAI: Sorry Chair, he has already finished and is already off the floor.

I wanted to clarify this matter, hon Chair.

The price of petrol ... UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 70 The HOUSE CHAIRPERSON (Mr M L D Ntombela): Hon member, I have not given you ...

[Interjections.]

Mr T B MUNYAI: Oh, no problem!


The HOUSE CHAIRPERSON (Mr M L D Ntombela): ... to do that.

Mr T B MUNYAI: Thank you, hon Chair.

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Thank you very much.

Hon members, may I make you aware that, as I call the hon Magaxa to the platform, hon Mina Lesoma will be taking over.

Are you ready, hon Mina?

Ms R M M LESOMA: Yes, hon House Chair, Ntombela.

The HOUSE CHAIRPERSON (Mr M L D Ntombela): Okay.

Hon Magaxa, go for it.


Mr K E MAGAXA: Hon House Chair, the country’s electricity demand has grown since 1994.

As the ANC-led government, we have systematically supplied electricity to communities who were UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 71 historically deprived of basic services under apartheid.

This means that the majority of the population suffered from energy poverty, which deprived people of a dignified, modern and civilised style of living.
The ANC-led government sort to transform the lives of the majority by providing basic housing, water and electricity.

This supply of the basic services also extended itself to indigent and poor households receiving free electricity units and water.

This was part of its campaign of creating a better life for all.

The economic growth and development in the country, since 1994 has also increased the demand for electricity.

I think it is important for the previous speaker to take that into consideration.
The country has an electricity supply shortfall due to growth in demand and not timeously increasing generation capacity.

The Sona 2020, addressed this matter of increasing the supply of electricity through increasing generating electricity through renewable energy projects.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 72 Accordingly, regulatory measures for the development of this project have been promulgated.
The expansion of green energy also created opportunities for industrialisation and job creation.

The economic thinking of that sort come from the black, green and gold economic book of the ANC, not from some unutilised and untested blue book.

Based on our energy demands, South Africa has traditional multiple energy carrier such as renewable, coal, hydroelectricity and nuclear.

This multiple energy carriers also contribute to security of supply.
The largest supplier of cheap electricity in South Africa has historically occurred through coal generation.

This has served as the backbone of the developments of mining, agriculture and industry.

However, with the high global level of carbon emissions and climate change, the country has international commitments to reduce its carbon footprints.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 73 The ANC-led government has declared that this will occur through a just transition.

The rational for just transition is to ensure that the country is able to effectively supply its electricity demand to ensure the economic growth and development as well as ensure ...

[Interjections.]

Mr N M PAULSEN: Where is your tie and your jacket?


Mr K E MAGAXA: More over the government must address energy poverty if the majority of the people are able to participate in the Fourth Industrial Revolution.

The country has an energy mix that is contained in the integrated resource plan.
Government seeks to expand all energy resources to ensure that the country’s electricity demand is met and enabled at an economic reconstruction and recovery plan which includes beneficiation, organisation and industrialisation.

This is aimed at job creation and a reduction of triple challenges of poverty, inequality and unemployment.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 74 In the case of coal generation, it is imperative that government continue pursuing clean coal technologies and carbon capture and storage with other countries such as China, Germany, etc among others.

Nuclear energy generates cheap electricity without the mission associated with coal fired plants.

Natural gas is another clean source of energy.


The recent finds along the coast of the country and in neighbouring countries is an energy source which need to be utilised to power the economies of the region and creating the standard opportunities for beneficiation.

It is also pleasing to note that the President in Sona 2022 highlighted the development of the KwaZulu-Natal Water Project which included a hydroelectric plant which is clean source of energy which will provide cheap electricity.
Expansion also include growing the renewable energy industry to supply electricity.

However, the renewable sector has well-known limitation which it has not yet overcome.

Namely power storage capacity, power generation and lack of the economy of scale.

Experts have already estimated that only 30% of the country’s UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 75 overall electricity demand can be supplied through renewable energy.
This means that while clean energy is the future it will not be fully supplied through a renewable energy as the hon Mileham is obsessed with in his recent article.

The cost of electricity in South Africa is graduated through a transparent formula and is determined through an arm’s length process by National Energy Regulator of SA, Nersa.

Therefore, the cost is not determined by the government.

Increases are based on input costs, assets and revenue requirements.
The process is very rigorous as Eskom’s circular recently applied for a tariff increase of nearly 20% which Nersa declined and reduced it to 9,61% based on its formula and calculations.

Therefore, Nersa’s approved tariff increase balanced the interests of all stakeholders, namely government, Eskom, business and ordinary poor residential communities.

The Nersa’s guidelines also determine municipal tariffs to improve the current distribution model as all municipalities apply for tariff approval.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 76 This is an area of concern as the level of profit which some municipalities make from electricity and water is a grave cause of concern especially for the poor and the working class.

This also negatively impacts on the middle strata as it erodes disposable income and reduce savings.
It is very concerning that in some parts of the country such as the Western Cape, the cost of electricity and water to the people is extremely high.

In addition to the high electricity tariff, there is a supplier surcharge and connection fees that are paid every single month as if there are monthly connections.

Therefore, the blue book is based on dubious market economics if this is the practice.
Electricity and water is for the common good and not of something where municipalities should be seeking super profit, as it is the case in the City of Cape Town.

This causes structural inflation in the economy and discourage investment in the economy as basic inputs costs are high.
Take a real life example, of a renewable energy project in the Western Cape such as Darling Wind Farm which was a project UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 77 located here.

It supplied electricity to the City of Cape Town at 48 cents a kilolitre, while at the time the retail cost of prepaid electricity was 129 cents per kilolitre, which is criminal.
This indicates a profit margin of over 200% the breakeven cost for production by the Darling Wind Farm was 68 cents a kilolitre and when the company attempted to negotiate with the DA-led City of Cape Town to pay the breakeven costs, the city refused even though it would have still made a 100% profit.

This real life example forced one of the earliest renewal project in fact forced that particular company to be liquidated due to the intransigence of the City of Cape Town.
Those who stay in the glass house must not start violence of throwing stones.

In fact, hon Chairperson, it is important that an audit must be conducted on the level of profit which municipalities make from electricity and water as this certainly require regulation to prevent high earned costs.
The DA in the Western Cape especially the City of Cape Town is still charging people those charges when there was drought, despite massive UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 78 rains taking place on daily bases.

People are still paying triple.

Services in the Western Cape are supplied to selective parts of the province not the majority.
Increasing costs is the only way the City of Cape Town engages in selective supply in order to undermine and press down the poor.

For they are obsessed with inequalities.

The City of Cape Town only works on high costs.

That is how they continuously create inequalities and bringing back the apartheid system.

These increases in costs translates into high tariffs and in turn erode disposable income and places hardship on the working class, the poor as well as the middle strata in the city.
This neoapartheid is not a mistake, as it is designed to increase poverty, inequality and unemployment.

In conclusion Chair, as I am sitting here, in my area, we do not know when the dustbins were last taken by the City of Cape Town.

While people here in Cape Town are paying almost triple R1 200 per month, but still those people are still suffering the poor services of the DA-led government.

Thank you.

[Time expired.]


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 79 Mr M J CUTHBERT: Hon Chairperson, the decision by National Energy Regulator, Nersa, to hike electricity tariffs by 9,61%, coupled with a petrol price increase of R1,46 per litre and diesel price increase of R1,48 per litre is a punch to the gut which South Africans can ill afford.
Recently, the South African Local Government Association, Salga has reported in the Citizen Newspaper has electricity prices have increased by an astronomical 307% since 2009.

If the fact that more than one in three South Africans find themselves unemployed wasn’t bad enough, those who are fortunate enough to have a job have seen their income eroded by 5,1% since December 2019, according to the BankservAfrica Take Home Pay Index.
According to the latest Household Affordability Index, by the Pietermaritzburg Economic Justice and Dignity Group.

Year- on-year basket prices have increased by 8,9% outstripping headline inflation.

The cost of the average household food basket increased by R354,52 from R4001,17 in February 2021 to R4355,70 in February 2022.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 80 The moral of the story is each time you raise input costs, businesses pass these costs into the consumer and South Africans become poorer.

There is little doubt that a large proportion of the input cost passed to consumers are as a result of the incessant energy hikes meted out to them year after year.
Instead of focusing on bringing more generating capacity on to the grid, introducing competition into the energy market and investing in alternative sources of energy government has set on its hands.

All the while both businesses and consumers have been forced to purchase the electricity through the state-owned monolith Eskom, that is of course contingent on its ability to deliver on its commitment to supply you with electricity.
As we know, hon Chairperson, it’s been more a case of lights out than lights on since 2007.

Despite the limited reprieve offered by government in allowing 100megawatts of self-generation during 2021 and symbolic movement towards splitting up Eskom up Eskom into three separate entities, energy reform has never been a priority for this government.

That is where the DA enters the ring, hon Chairperson.
Having recently adopted our revitalised energy policy at the sitting of our federal council this past UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 81 week.

We can criticise the government until we are blue in the face but, if we fail to table alternatives then we are not serious about the business of government.

Some of the key interventions we aim to implement when we form part of the governing coalition are as follows.
Realising a just energy transition by investing in the reskilling and retraining of workers for the green economy, incorporating renewable energy into the market at a faster pace by removing restrictive caps on the uptake of renewable energy, containing energy prices and expanding capacity by removing Eskom from the electricity generation business and creating a more competitive and diversified energy market, improving energy efficiency by using evidence-based interventions such as time-of-use tariffs, load shifting, solar geysers and mixed forms of generation, setting a more ambitious emissions reduction target that would more closely align with the Paris Climate Agreement and, finally, allowing municipalities to generate, consume and sell their own electricity.
The fact is South Africans have been left punch-drunk by the price hikes over the last few years and only the DA has a UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 82 tangible path forward towards realising an energy secure future.

I thank you.

Ms P MADOKWE: Thank you very much, House Chairperson.
In the not-too-distant past, South Africa was one African country that was repeatedly projected to be a world-class participant with similar standards to developed countries.

However, our beloved country has sunk into chaos and darkness, both figuratively and literally during the last decade or so.

With each passing year, it is marked by all of the traits that characterise underdeveloped countries.
Growing unemployment, exponential job losses, high crime rates, decreasing education standards, absurd minimum wages, an unrepentantly corrupt leadership, and so on.
As expected, our government’s recent state of nation address, sona, and Budget Speech show no hope of rescuing the economy or creating jobs, as our government has dismally failed to produce plans for economic recovery or fiscal sustainability, is hell- bent on auctioning off our state-owned enterprises, SOEs, and is tying us and future generations to paying debts rather than UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 83 developing our country by raking in debt from the International Monetary Fund, IMF, the World Bank, and other global loan sharks.
The average South African household is taking in less money, after numerous job losses.

The cost of living, especially for basic necessities such as electricity, fuel and other forms of energy generation has become unbearable.

The recent increases in electricity and fuel prices are a cruel addition to poor people’s agony.
Low-income households can barely make it as is, young people are sinking into depression, small businesses are still grappling with the consequences of COVID-19, and the consequent increase in food prices, transport prices and further limited access to basic goods and services does not make things easier.
The privatisation of Eskom through the introduction of Independent Power Producers, IPPs, instead of building internal capacity, as projected, has had no impact on electricity generation or access for disadvantaged households.

Instead, it has assured profit maximisation and that access to electricity is limited to the wealthy, as a result of these price hikes.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 84 The EFF has long warned against giving a massive and critical duty like guaranteeing a reliable and inexpensive electricity supply to a clueless De Ruyter, whose entire strategy has revolved around sucking Eskom dry and then selling it off for next to nothing.
The government must implement an elaborate energy strategy based on a broad energy mix that balances the use of fossil fuels and renewable energy resources ...

[Inaudible.]

...

The HOUSE CHAIRPERSON (Ms R M M LESOMA): Proceed hon member.

You have muted yourself again.

Ms P MADOKWE ...

Apologies for that Chairperson.


The government must implement an elaborate energy strategy based on a broad energy mix that balances the use of fossil fuels and renewable energy sources while taking climate change and the country’s developmental needs into account.

South Africa must not allow itself to be bullied by Western nations which emit the most carbon and whose development pathway was on the backbone of fossil fuels.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 85 The line between environmental imperialism and environmental protection is razor-thin, and the West’s newly discovered environmental consciousness of convenience must not dictate how South Africa should manage its energy generation.

Communities, on the other hand, must not be bullied into surrendering their homes and livelihoods.
The concerns raised by communities about foreign fuel firms such as Shell, conducting seismic surveys on our coasts are reasonable and should be taken into account, rather than the arrogant dismissal that has dominated the discourse.

The government’s failure to deregulate the fuel price, saying that South Africa is not market ready for deregulation, has resulted in repeated and significant fuel price spikes.
The petroleum industry is highly monopolised, with little to no support for emerging local and black-owned businesses, and the government has failed miserably to level the playing field between wholesalers.
Notwithstanding some of the international variables beyond our control that influence the basic fuel price, the government has been unable to account for the highly unjustifiable 15% freight UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 86 premium or its failure to engage freight companies on this ridiculous amount.
If the freight premium was introduced at a time when the Southern African coast was considered dangerous and plagued by piracy and that is no longer the case, why has our government allowed for the extortion of South Africans for so long?
The inclusion of Road Accident Fund, RAF, levies which have been poorly managed over time, in the basic fuel price makes no sense, and as a result, all local factors that affect the basic fuel price should be reviewed, and a more equitable and rational pricing model should be implemented.

There is no justification for such frequent fuel spikes since inland countries such as Lesotho and Botswana, which buy fuel from us, can sell cheaper fuel than us.
The EFF has long warned against the dangerous concoction of the private sector’s exploitative nature and a government that has relinquished its basic responsibilities of service delivery and policymaking to the private sector.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 87 We should all be concerned about this year’s state of the nation’s address, sona, over-praise of the private sector and the dangerous decisions that followed, including price hikes.
Having said that, we applaud the Department of Mineral Resources, DMR,’s commitment to safeguard PetroSA from private sector vultures yearning for its demise, and we hope that a similar amount of effort will be put towards exploiting challenges faced by refineries and developing existing facilities into a South African mega refinery through collaboration by relevant departments.
Such measures should result in lower energy generation costs and thus ensure fairer and more regulated prices for our people, particularly those from low-income communities who should always be at the centre of all government initiatives.

Thank you very much, Chair.

Mr S S ZONDO: Hon House Chair, South Africa, in its current state, has one of the worst energy policies and strategies in the world.
Our energy needs as a country are met with inconsistent access, poor quality and harmful impacts to our citizens.

However, the lack of attention paid to the energy crisis in South Africa has a marked impact on all citizens of this country, especially the poor.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 88 In late February 2022, the National Energy Regulator of SA, Nersa, awarded Eskom the right to increase electricity rates by 9,61%, after it had initially requested almost double that.

Already our people are struggling to pay the current electricity rates, and for what?

We regularly see load shedding, so it cannot be for the reliability of the system.
The high rate increase also cannot be justified by Eskom’s ability to provide universal access, as many South Africans still cannot access electricity in their places of residence.

The truth of the matter is that our policies on energy are at least 10 years behind the rest of the world.

Therefore, we are observing illegal electricity connections in townships and other informal dwellings, as there is no alternative and electricity is unaffordable.
Ironically, we are meant to be progressing at a fast rate to a just energy transition, where we start giving local communities affordable access, stakeholdership and sustainable power so that they may develop their communities.
In this sense, His Excellency, our President Emeritus, Prince Mangosuthu Buthelezi’s words ring true, when he voices his “concern with the political will, and the ability, of the ruling UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 89 party to do everything the President has committed to do in his state of the nation address”.

In our current situation, electricity is a real obstacle to employment in South Africa.
With the ever-escalating tariffs and persistent load shedding, small businesses cannot afford to keep their doors open.

Small businesses require constant turnover in order to survive and pay employees.

Eskom must be held directly accountable for its contribution to the half-million job shed last year.

The absurdly high cost of energy has a devastating effect on addressing youth unemployment in South Africa.
The struggling youth find it increasingly difficult to find jobs in an already declining economy, yet their energy demand remains valid, albeit unaffordable.

Added to this are the numerous fuel price increases, the most recent attributed to the inhumane Russian invasion of Ukraine, further preventing the youth to go out and actively seek jobs.
The reality of the expense when taking a taxi or any other type of unreliable public transport provides a life-or-death choice UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 90 of whether to seek employment or let their families starve.

The high cost of electricity tariffs also means that staying at home and doing desktop work is now a luxury.
The increase in the overall energy, electricity and fuel costs, will further slow down our economy and entrench the ongoing job losses we have become used to.

This will happen as a result of a slower tourism and transport sector, as people are less inclined to travel locally and support local businesses.

If we do not address the escalating costs of energy ... [Time expired.]

The HOUSE CHAIRPERSON (Ms R M M Lesoma): Hon member, your time is up!

In future, you must learn to time yourself.

Thank you.
Thank you.

Afrikaans: Dr W J BOSHOFF: Agb Huisvoorsitter, ... English: ... the economic activity is equivalent to the use of energy.

It is not money that makes the world go round, but energy.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 91 Therefore, use of fossil fuels has been central to the industrial revolution.

It extended available labour beyond that which humans and draught animals can metabolise.
In short, fossil fuels ended slavery and turned animals into pets.

As fossil fuels are concentrated and mostly buried, the cost of energy became monetised.

Pre-industrial existence was built on evenly distributed energy in the form of food, feed and firewood, which was free, but scarce.

It was replaced by concentrated and mostly imported energy, which was costly, but abundant.

The net effect for industrialised societies, as well as those near the sources of energy, was highly beneficial.
South Africa was endowed with abundant coal, quite a bit of uranium, little gas and no crude oil.

Coal is ideal for stationary applications and we built huge power stations and a national electricity grid.

We even turned coal into liquid petroleum, which worked surprisingly well, although we never even approached self-sufficiency.

In fact, if it wasn’t for recurring oil crisis since 1973 with ever increasing crude oil prices, this project might never have been feasible.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 92 The ever weakening rand contributed to the same result.

Energy supply was ensured by refining of imported crude oil, which was done on a scale sufficient for the local economy.

The capacity to store a large oil reserve was created.

We even entered the select club of nuclear powers, in order to become energy self- sufficient.
In 1994, the prospect of an internationally acceptable political dispensation held the promise of a great energy and therefore economical future.

Cheap, dependable electricity was generated domestically, while an end to sanctions meant that crude oil could be had at market price.

Little did one know that Eskom as well as the rand would implode due to bad policy, driving up energy prices.

In fact, the rand fell from around R3,50 per dollar in 1994, to the current R14,50.
Fortunately, technology is not stagnant.

While the impact of fossil fuels on the climate became known, the ability to harness sun and wind energy at affordable prices developed.

Concurrent UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 93 is the development of batteries, as well as green hydrogen, as storage systems for fluctuating renewable energy.
Transition from one energy dispensation to the next, especially a just transition, is easier when the old one is in crises.

In other words, if Eskom was in excellent shape and if a strong rand could buy lots of crude oil, and if South African refineries did not burn down or were closed, it would have been difficult to justify transition to an alternative still ridden by uncertainties.
Currently, South African businesses and consumers implement renewables not for the sake of some transition, but for survival.

The 25 giga watt of dependable coal generated electricity left, buys time to solve problems of the transition.

While being a huge dark cloud, rising energy prices might have a silver lining.

In future, international conflict – very hot or very cold places - and fluctuating currencies may have less impact on communities in South Africa.
Even an ANC government might not be able to devastate the economy anymore.

I thank you.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 94 Mr B N HERRON: Chairperson, the rising cost of electricity is certainly stifling economic growth, but I’d like us to focus on its impact on families and social cohesion.
We can debate about the build quality and the continuing spatial injustice, but the democratic state has built millions of subsidised homes, connected millions of people to the electricity grid and provided millions of people with access to water.

These deliverables should have contributed towards reducing the level of inequality, but the people living in these homes cannot afford electricity nor can they afford water.

No one should be denied access to these services because they are unaffordable.
They are essential to our development as human beings and they are essential building blocks if we are to develop a just and inclusive society.

If this House is to have an honest debate, we need to discuss how to achieve complete transparency in the electricity supply chain, how to reduce the price of bulk supply and how to put an end to the profit-making by municipalities who are literally throttling consumers.
Many municipalities are now using, illegally in my view, prepaid electricity meters as a debt- UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 95 collecting tool.

I recently met a disabled resident in Mitchells Plain who hasn’t had water for over a year.

Her situation mirrors that of many across our country.

Her water is disconnected but she is still charged the fixed-pipe levy and other water charges.
The City uses her prepaid electricity payments to collect, what it says, is an unpaid water account.

And when she is able to scrape R10 together to buy electricity, she gets 2.6 units.

They take R3.10 from her R10 as a repayment fee.

The hon Mileham and the DA must acknowledge that part of the unaffordability problem are the huge mark-ups on electricity - the profit-making by municipalities.
While the woman in Mitchells Plain battles to survive, the DA’s flagship government, Cape Town, collected R8,2 billion in electricity revenue in the first half of this financial year, for which it paid R5,4 billion.

That’s a whopping R2,8 billion profit in just six months.
For the full financial year, the City projects revenue of R15,7 billion and bulk purchases of R11,2 billion, with a gross profit of R4,5 billion and a projected net profit of UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 96 R2,6 billion.

Imagine R2,6 billion in the hands of a consumer or a small business?

This leads us to the necessity of transparency.


We get to interrogate and oppose Eskom’s tariff increases, but we cannot say the same for the National Energy Regulator of SA applications, or Nersa applications, by municipalities.

When I did a Protection of Personal Information application, or Popi application, recently for the City of Cape Town tariff application to Nersa for the current financial year, my request was refused by the City, with the City claiming that it falls within commercial activities.
Perhaps the hon Mileham and the DA can explain why a municipal Nersa application is regarded as confidential and in whose interests this is.

Thank you.

Dr M J CARDO: Hon Chairperson, the rising cost of fuel and electricity is crippling this country; and, as always, it’s the poor and unemployed who bear the brunt of surging prices.

Petrol has just gone up by R1.46 per litre.

Diesel increased by between R1.44 and R1.48 per litre.

Illuminating paraffin shot up by R1.21 per litre.


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 97 Our economy is hamstrung by high energy costs.

What does this mean for the beleaguered citizens of our nation?

Firstly, more expensive petrol means more expensive food and transport.

For those South Africans lucky enough to have a job and earn an income, they will spend more money on getting to the workplace.

Their rands and cents will drain away faster.


But for the 7,6 million unemployed South Africans actively searching for a job, the price hike will hit them harder.

When the price of petrol goes up, taxi fares rise.

This makes it much more onerous for workseekers to afford the taxi which takes them into town in search of a job, and which takes them home at the end of the day.
So they abandon all hope; they stop looking for work; and they join the ever-growing pool of 3,8 million discouraged individuals convinced they will never find employment.

Meanwhile, higher transport costs ultimately lead to higher food costs, which means that more and more people who are poor and unemployed go hungry.

Secondly, more expensive paraffin means more expensive fuel for our most vulnerable households.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 98 Millions of poor South Africans rely on illuminated paraffin as their primary source of cooking fuel.

The costlier it becomes, the more difficult it is for parents to keep themselves and their children warm and fed.

Thirdly, more expensive electricity means household budgets get stretched to breaking point.
Whereas a fixed rand value of electricity used to last the whole month, now it’s gobbled up within a matter of weeks or even days.

Bigger electricity bills mean there’s less money for everything else, from bare necessities to small luxuries.

Every single line item of household expenditure has to be cut to the bone.

Savings are depleted faster.

In short, sky-high energy prices are placing an intolerable strain on the most vulnerable South Africans.
The government wrings its hands and comes up with excuses.

“COVID-19 has devastated the economy, and driven up inflation”, says the ANC.

“We are facing global headwinds”, is another well- worn line.

But most of the headwinds started blowing before the pandemic struck.

They were whipped up by the ANC’s own economic mismanagement, policy incoherence and incompetence.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 99 Two things are true of the ANC.
One, it produces a lot of hot air.

Two, its talk is cheap.

Now, if only there was some way of bringing these two facts into harmony and harnessing their combined potential, then South Africa would have the largest and cheapest energy supply in the world.

In the meantime, let’s start with the basics.

Let’s break Eskom’s monopoly and the year-on-year electricity tariff increases inflicted on South Africans.
And let’s review the fuel pricing model, which benefits the state but punishes the most vulnerable.

If we can do those two things, we will be helping the poor and unemployed.

Thank you.

The DEPUTY MINISTER OF PUBLIC ENTERPRISES: Thank you very much House Chair, my apologies.

May I request that I take off the video.

My network here is not so good.

With your permission, House Chair.

The HOUSE CHAIRPERSON (Ms R M M Lesoma): Please, you may.
The DEPUTY MINISTER OF PUBLIC ENTERPRISES: Thank you very much House Chair.

We are meeting today at a time when the world is UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 100 faced with the challenge of war between Russia and Ukraine.

A war which can end up creating many more economic hardships and the myriad of other crisis for the entire globe if things are not managed properly.

House Chair, we must never fear engagements, dialogue and negotiations.
It is for this reason that we must continue calling for engagements to resolve even the most difficult of problems facing humanity.

The President in his state of the nation address, highlighted plans in place to put Eskom in a correct path and a proper pedestal by making the assessment of progress when all these entities experienced paralysis against the backdrop of the five-year Medium Term Strategic Framework.
In February 2019, the ministry of Public Enterprises announced bold initiatives towards fundamentally restructuring Eskom and the electricity supply industry.

Where emphasis was placed on securing a safe, reliable and affordable entity supply industry for the country.

The department published a roadmap for Eskom in the reformed electricity supply industry in October 2019.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 101 This roadmap recognised that South Africa was blessed with an abundance of energy sources which we wish to drive economic growth, social development to benefit all its people.

It also identified the importance of electricity supply security and pricing that is geared towards promoting competitiveness of the South African economy and to boast our industrialisation.
For purposes of this debate, it is important for one to underline the following key outcomes that ought to be achieved in terms of that roadmap.

Firstly, transitioning from the existing dependants on fossil fuels to a mixed of energy sources as the integrated resource plan of 2019 dictates.

Secondly, the restructuring of Eskom into different subsidiaries, generation, transmission, as well as distribution.
Thirdly, an intensive focus on radical improving the current operations and eliminating inefficiencies in generation, and the greater requirement for transparency in the governance of both the Eskom holdings, as well as its subsidence.

Of course, also having a rigorous approach to cutting wasteful costs optimising revenue and resolving the debt burden, as well as the just transition which will involve all the stakeholders.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 102 House Chair, Eskom plays a critical role in the South African economy through the provision of electricity.

It is therefore imperative that its tariffs enable it to find its operations through the revenues derived from the sales thereof.
Eskom is operating in a regulated environment and their tariffs are determined by the National Energy Regulator of South Africa, NERSA, through a multi-year priced termination methodology.

The Electricity Regulation Act requires NERSA to ensure that all licences, including Eskom, recover the efficient cost of electricity and the fair return.

Cost reflective tariffs are a prerequisite to enable Eskom to provide the economy with reliable electricity at affordable prices.
Migration towards cost reflective tariffs as envisaged in the electricity pricing policy has not yet happened.

The cost of service approach is a common feature of the regulatory pricing frameworks and is employed by NERSA in other sectors by other regulators within South Africa and by utility regulators globally.
The recent NERSA decision to approve a tariff increase of 9,61% - I think I need to explain this because a lot has been said around this and some of it factually UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 103 inaccurate - for which only 3,49% tariff was against Eskom’s application of 14,58% for the year 2022-23.

The other 6,12% increase was for the previously approved under recovery from the regulatory clearing account mechanism.
This regulatory clearing account mechanism deals with previous revenue under over recoveries.

The implementation of this revenue recovery account was part of the court order with 2022-23 revenue requirement.

So in reality, the approved 3,49%, excluding the regulatory clearing account is not only less than Consumer Price Index, CPI, of 5,9% presently, but also less than the Independent Power Producers Procurement Programme, IPPPP, cost increase of 5,85% in 2023.
The government appreciates and welcomes the tariffs by NERSA because they will be balancing customer affordability whilst supporting Eskom’s sustainability.

Eskom’s constrained financial position is having a negative impact on the entity’s ability to execute result maintenance on their plans which results in high unplanned capability loss factor.
But in order to caution the indigent customers and distressed companies, Eskom is implementing free basic electricity of 50 Kilowatt-Hour subject UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 104 to be reviewed, as well as a negotiated pricing agreement respectively so as to support those indeed who are in serious need.
As the ANC, we are a caring government that sympathises with the plight of our people, and we understand that Eskom is one of the vital tools of their livelihood.

Eskom continues to connect the previously disadvantaged households to the grid through the electrification programme funded by the Department of Mineral Resources and Energy.

For the financial year that ended 2021, a total of 106 669 new connections were completed.
This demonstrates the ANC-led government’s commitment to redress in correcting the sins of the part.

Contrary to the DA that makes so much for the energy costs through these tariffs, just visit them in their backyard, the contrary is true as the cost they subject the poor in those municipalities that are under their control.

In fact, hon Magaxa as well as hon ...

[Inaudible.]

... make real in exposing their hypocrisy.


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 105 A financially sustainable Eskom is crucial for recovery of South Africa’s economy.

Further cost reflective tariffs are essential for the entity to be able to execute its mandate which is the provision of reliable, operating and affordable electricity.
Of course the operating model is no longer fit for purpose and thus the turnaround plan to enable the entity to execute its mandate.

Eskom is implementing a turnaround plan which is aimed at increasing efficiencies within the business.

The restructuring of Eskom is one of levers of the plan which will improve transparency, agility and promote competition in the energy sector.

In December 2021 Eskom has established a separate transmission subsidiary.
A separation of generation and distribution is anticipated on 31 December 2022.

This we do, not at the instance of the DA because we have determined so in the roadmap as I have outlined.

The end state of this restructuring of Eskom is to have an independent transmission system marketing operator that will be able to buy electricity from all the producers based on the least cost and this will increase competition and decrease the price of electricity.
Of course to improve operational UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 106 performance, the entity is implementing a Nine-point plan focusing on fixing Medupe as well as Kusile defects, fixing full and partial load losses and long term outrages.

In addition, Eskom is implementing its reliability maintenance recovery programme.
The President did make mention of the need to procure the 400 Megawatts that will be procured to enable the entity to create space for its plans to meet the growing demand.

This will be filled by renewables and other energy sources such as gas and nuclear.

There is a need to invest on energy infrastructure to ensure that the country has adequate supply of energy at an affordable price.
As I conclude, the entity is recovering from the phenomenon of state capture and through the implementation of the turnaround plan and the restructuring process, this will go a long way to achieve operational efficacy.

The department will be monitoring the recommendations of the commission on Eskom and will work with various law enforcement agencies to ensure those who are implicated are brought to justice.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 107 It is against the above that Eskom must be supported in its renewal journey.

We are beginning to see green suits here and there and when this process is completed we are sure Eskom is ...

[Inaudibled.]

... provide reliable electricity for the economy.

I thank you.

Mr S M JAFTA: Thank you, hon House Chairperson.

May I leave my video off please?


Hon House Chairperson, as we schedule this debate for discussions the National Energy Regulator of South Africa approved a 9,6% tariffs increase for Eskom.

We also know that Eskom just as we were planning our programme for this received a guarantee of R21,9 million from the Minister of Finance in his Budget Speech.

To make matters worse we have a super Minister of Mineral Resources and Energy who is blocking every effort to diversify our pool of electricity generation.
It was the same Minister who declared in 2015 that, I quote: “The crisis that Eskom was a positive crisis.” It took much convincing for this Minister to bring on board embedded electricity.
Despite the White Paper on energy published in 1998, declaring his commitment to promoting a new model of development and a new paradigm for the development of the energy sector the fixation on coal by the Minister is the real crisis UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 108 we must confront.

Even the central funds ...

[Inaudible.]

... itself in securing a reliable and affordable diversified energy securing solutions for South African economy by 2030.
Hon House Chairperson, I digress the latest fuel adjustment for March 2022, exposes the ANC’s dismissal approach to energy security not only the adjustments set to deepen the plight of the poor, they equally will have a significant impact on basket of goods and services that are used to measure inflation.

This adjustment will have an inflammatory effect and will also erode consumer purchasing power for household food consumption living many poor South Africans forced to opt for fuel over food items.
Changes for March in petrol prices were very high.

Hon House Chair, these prices are not a fisher of a developmental state, they are not aimed at social justice and just order for the poor of masses.

In restructuring the entire regime of energy security we must start with the Minister.

Central energy fund and National Energy Regulator of South Africa, Nersa, must leave politics behind and focus on their mandate.

It cannot be business as usual.

I thank you, hon House Chair.


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 109 Ms C M PHIRI: Thank you, hon House Chair, Mme Lesoma.

Allow me also to request to switch off my video for a better reception if you give a permission, may I do so.

Thank you, House Chair.


Hon members and fellow South Africans, even this was a DA motion I nearly brought the speech on sexual harassment in the Western Cape provincial government by the former Chair of the DA in Western Cape.

This is a motion which needed to be brought to the House for the debate in the near future.

However, House Chair, allow me to focus on the motion at hand.
This is something not only wrong, but profoundly shaming when a motion sponsored by the concern of white minority comes to dominate the national debate 28 years after the ushering in the democracy.

The underlying implication of this debate is that high electricity tariffs are an aberration in the history of South Africa because the ANC-led government and that the very same government has become a milestone around the efficient energy industry in the country.
Ironically, history shows that between 1976 and 1989 Eskom has involved large investment in generation capacity expansion that led to large increases in electricity’s tariffs.
Moreover, between 1979 and 1982, the oppressive apartheid regime experienced a growing electricity UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 110 demand that led to the load shedding even when Eskom was supplying electricity to a selected few to the exclusion of the majority of black people.
Therefore, the misreading of experiences in the sponsored debate does not only throw the infamous baby out of the bathwater, but also peddles prejudice that makes understanding Eskom strength and weaknesses particularly difficult.

House Chair, we are not surprised that the motion for this debate was sponsored by hon Mileham.
Few weeks ago he published an article arguing that renewables energies are the future of this country regardless of the fact that renewable does not provide a baseload energy needed to guarantee uninterrupted electricity supply.

House Chair, excuse me for saying this, but hon Mileham’s argument is probably the most ...

[Inaudible.]

... idea in the world.


For example, Eskom mid-term report as of the 30th September 2021, showed that the installed electricity capacity was 46 000 megawatts excluding the planned and unplanned capability loss factors and that coal rather than renewables was responsible for the lines shares of the generation capacity.
Moreover, the unit cost of using coal to generate electricity UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 111 was cheaper relatives to renewables.

This does not however mean that the cost of renewables has not dropped in the past 10 years.
Thus, seen if we were to leave the supply of electricity solely to the renewables today they will not meet the current electricity demand on the one hand, and there would be repress rather than enable access to energy justice for the poverty stricken households on the other hand.
This indicate that political economy of energy in South Africa is not something that hon Mileham and the DA with their technical tool kits that particularly well equipped to comment on, but I would give them the benefit of the doubt since John Locke once remarked that human beings are roughly equal in their mental capabilities.
House Chair, hon Mileham and the DA would argue that the market must be free to allow renewables to show their full potential contrary to the popular belief a free market is an illusion.

Markets are proposed by rules that determine who can participate and regulations including common reporting standard, CRS, regulations.
For example, the Electricity Regulation Act and the electricity pricing policy have been amended by the ANC-led UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 112 government to allow competitive electricity market to drive affordability through fair competition.

Secondly, Nersa’s decision to approve Eskom’s tariffs the increase of 9,6,1% took into account the prevailing socioeconomic condition when determining electricity tariffs.
For instance, if market forces were left alone to determine prices amid the growing electricity demand price will be higher because producers will be taking advantage of economies of scale in a small market by international standard, but large in Sub- Saharan African terms.

The two examples I’ve just highlighted indicate that the ANC-led government is neither a demonise nor a dysfunctional institution in terms of the management of affordable access to the electricity.
House Chair, breaking away from the DA’s ideological clock that pretend to be an objectively economic ...

[Inaudible.]

... is the first step towards understanding the complex energy industry in South Africa.
The DA’s ideological clock that advocates for free market suggests that Eskom’s natural monopoly is not fair, instead we should have a free market in the energy industry where different producers compete for customers while the ANC- UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 113 led government supports a competitive market in the energy industry.
It rejects disputes argument that prohibits the exploitation of coal for electricity generation and exports led economic growth in the short term.

Coal is one of the biggest contributors to job opportunities and economic growth and free market economies that the DA has immersed in self and cannot assure us in advance that the job losses in coal sector will be compensated by increase in the renewable sector.
Moreover, the country generates electricity through other energy carriers which it will not abandoned.

The DA’s distorted ideological clock has serious implications as it will result in the misguided use of South Africans abandoned natural resources.
This is the reason why President Ramaphosa emphasised in 2022, state of the nation address, the importance of empowering the aging coal power stations to save more jobs and utilise coal as it will put a downward pressure on the high cost of independent power producers, IPPs, in the short term.
This needs to occur on clean coal technologies and carbon capture sulphur dioxide from flare gas must be captured and the sulphur extracted and monetise for the manufacture of fertiliser and dynamites for mining and therefore provide industrialisation UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 114 opportunities and job creation opportunities rather than pollution.

The current technology captures 97% of the sulphur dioxide.
House Chair, the motion for debate sponsored by hon Mileham concentrates more than it is necessary on Eskom’s failure to the neglects of the trial and error nature of the performance even in the most successful cases.

Factors other than operational and financial performance do not account for success in hon Mileham’s world view.

Consider for the example, the Statistic South Africa, Stats SA, has revealed that more than 90% of South African households have access to electricity.
Thanks to the Department of Mineral Resources and Energy integrated national electrification programme and nongrid connection.

Eskom is responsible for largest component of this connections and the ANC-led government continues to provide targeted subsidies of 50 kilowatts per hour electricity per household per month for the vulnerable households to narrow the gap between physical access and affordability access to electricity.
Without targeted subsidies the increase of electricity prices is above the inflation rate over the past decades will increase poverty UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 115 levels and energy poverty to the level of avoidance in the daily lives of our citizens.

Aside from targeted subsidies there are mechanisms put in place to minimise the burden of electricity price.
For instance, Eskom and IPPs pay taxes that are used by ANC-led government in areas of public expenditure with procure incidents like social grant.

Social grant in turn offset the burden of high electricity prices on the poor.

Of course, the DA will argue that social grants are pertinent.

However, it is natural that what is a low wage in the eyes of the DA is a handsome wage in the eyes of a black poor people due to the historical injustice of the past.
For yet, another example, municipalities are allowed to procure electricity directly from Eskom ... [Time expired.]

Mr G K Y CACHALIA: Chair, electricity used to be cheap.

However, over the course of some 13 years, the price of electricity has increased by 460%.

Last year, the electricity price went up by 15%, with another hike of 10% this year.

Now, let’s do what economists do and hold everything constant.
When you do this, you see that a 1% increase in electricity UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 116 prices causes economic growth to drop by 0,036%.

Now remember that the economy is expected to grow by 1,9% this year.

Even the ANC should be able to understand the importance of finding a balance between low supply and high demand, and that the only solution is to allow more players into the industry rather than increasing prices.
And, unless you’re thick as mince, you will realise that price controls should never be used to rule demand because, even if managing price causes a decrease in usage, the decrease in electricity demand results in a decrease in economic activity.
Hon Herron and hon Minister, it’s time to remove price controls and implement a windfall profits tax on producers to capture a portion of any electricity price increases above a benchmark and return the proceeds to consumers through tax reductions that moderate the impact on the poor, small businesses and other consumers.

That’s how you do it.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 117 Electricity must be available and affordable.
It is currently neither and the only credible solution is to fix the baseload issues at Eskom, and open up the playing field to competitors.

While government finally appears to be moving in this direction, albeit at a snail’s pace, the model has to change.

Hon Phiri, the crisis is now deep into its second decade.

Loadshedding hovers like a dark ANC cloud.

It is unlikely that there would be any reprieve from steeply rising tariffs.
Surely it’s time for sense to prevail and institute the commission of inquiry that the DA has called for – as was done in 1983, resulting in major organisational and institutional changes.

It’s time again, no, isn’t it, hon Phiri, instead of regurgitating false techno-babble.

The hon Magaxa says that shortage in supply is due to increased demand.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 118 Ms J TSHABALALA: No, no, no!
It is hon Magaxa, and you must breathe “Magaxa”.

Spell it right!

Mr G K Y CACHALIA: Can I please get this time back?

The HOUSE CHAIRPERSON (Ms R M M Lesoma): Okay.

Mr G K Y CACHALIA: The hon Magaxa says that the shortage in supply is due to the increase in demand.

[Interjections.]

He should know better.

[Interjections.]

The HOUSE CHAIRPERSON (Ms R M M Lesoma): No, hon members!

We must allow the member to proceed.

Mr G K Y CACHALIA: ...

[Inaudible.]


... the economy, and therefore demand, and the shortage, as we all know, is due to successive ANC governments’ strangulation of the economy and energy sector with the dual hands of mismanagement and theft.

Let’s get real here!

Debate concluded.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY (VIRTUAL) THURSDAY, 3 MARCH 2022 Page: 119 The mini-plenary rose at 16:37.