SPEECH BY MR. ELLIS THEMBA VEZI - MP

National Treasury aims to promote economic development good governance, social progress and rising living standard through accountable, economic, efficient, equitable and sustainable management of South Africa's public finances. Treasury is responsible for preparing a sound and sustainable national Budget and equitable division of resources between the three spheres of government. Real total GDP grew from R770 Billion in 1994 to R1.5 Trillion in 2005. In 2005 the economy grew by 5%. National Treasury is expected to advance economic growth, broad based empowerment, progressive realisation of human rights, and the elimination of poverty. The total allocation of R218 Billion (includes transfers to provinces) R17 Billion (8%) more than 2005 for increases to SARS and provincial and local government.

What remains a concern to the IFP is whether the existence of vacancies within Treasury has any impact on its ability to deliver of its mandate.
The IFP hopes that the accrual system is now almost complete. Treasury should now insist on performance otherwise officials will always use lack of capacity as an excuse for failing to perform. The IFP encourages Treasury to ensure that the PFMA is applied vigorously, that the public sector managers, manage more efficiently and are held more accountable. The launch of Asgisa requires National Treasury to play a pivotal role in providing the necessary sound economic analysis that should underscore this process. The IFP wishes to congratulate Treasury on its stable economic management.

The aim of SARS is to collect tax revenue and provide customs service. The IFP commends the commissioner, his senior management team and all SARS staff for their outstanding revenue collection performance in 2005/2006. SARS collected R3545,9 Billion last year, R21 Billions more than target bringing budget deficit down to 1.6% of GDP. SARS allocation is R4.8 Billion more that last year for capacity building and project management. The free movement of goods means that SA is exposed to greater levels of transnational criminal activity. These activities sometimes threaten national economic security. SARS should optimise compliance and risk management. It should also enhance trade facilitation and Border Control.

The aim of Stats SA is to produce accurate and reliable data in the following areas:
a) Economic growth - the measurement of the Gross Product.
b) Improving the measurement of price changes
c) Employment and job creation re-engineering of the labour force survey Stats allocation is R1 Billion, R333 Million (4.5%) more that 2005 for Surveys on Income and Expenditure, community and Labour force. The challenge to produce high quality data to meet the information needs of the state is massive. Stats SA faces high organisational risks. Stats SA as a scientific institution, operates in a society that for many years was deliberately and systematically denied proper development in the mathematical sciences. Official Stats provided an indispensable element in the information system of democratic society, serving the government the economy and the public with data about the economic demographic, social and environmental situation.

In congratulating SARS let me quote that famous American case:
"Over and over again the courts have said there is nothing sinister in so arranging our Affairs so as to keep taxes as low as possible. Everybody does so, rich or poor and all do right, nobody owes any public duty to pay more than the law demands. Taxes are enforced extractions, not voluntary contributions. To demand more in the name of morals is mere scant."


FOR FURTHER INFORMATION CONTACT
Mr. Ellis Themba Vezi: 076 287 8754
Noleen Hendricks: 082 886 9848