SPEECH BY MR EJ LUCAS IFP MP
BUDGET VOTE 30

Madam Speaker

It is a pleasure to be associated with The Department of Minerals and Energy because The Department is well on its way to ensuring legislation is developed in establishing a democratic, non-sexist and non racist South Africa.

We are also pleased to note that transformation has taken place in The Department and congratulate those who have demonstrated their ability of being competent. A South African reality is that if you are black, people tend to focus mostly on your shortcomings. And, as transformation becomes more and more a reality in The Department, black South Africans are compelled to work even harder. It is also worth noting that those who have defaulted within The Department have been dealt with, without fear or favour by The Minister.

However, there still remains a difficult and long road ahead. Broad Based Black Economic Empowerment has a major hurdle to overcome in order for it to be fully inclusive. This hurdle is the initial funding of projects. Finance houses are not prepared to take the risk. It is therefore important that interventions be found to overcome this immediate problem. If not, all the hard work done by The Minister and her Department to this point will not achieve its noble purpose. BEE is often referred to as the enrichment of a few. I am however aware that this is not the intention of The Minister. She has contributed greatly to transformation within her area of competence. Making BEE deals more inclusive therefore, becomes vital in order to shift the focus away from the enrichment of the few to the empowerment of the many.

We are pleased to see that the overall allocation to The Department, as well as each of its six programmes, has increased in 2005/06 budget. Overall expenditure has increased from R1.9 billion last year, to R2.1 billion in the current budget. Over the last three years there has been an annual average increase of 14.1 percent.

We are particularly pleased that the allocation for Programme 2: Promotion of Mine Health and Safety has received an increase. This programme aims to protect the health and safety of mine employees and people affected by the activities of mines. The recent spate of mine accidents is cause for great concern and needs to be addressed urgently. We have however, been assured by the Minister that there will be a Health and Safety summit this year where the problems will be addressed. The safety of miners is of the utmost importance and must not be taken for granted or compromised.

The aim of Programme 3, Mineral Development, is to promote, transform and regulate the minerals resources industry to achieve equitable and sustainable development. Expenditure on this programme has increased at an annual average rate of 27.5% over the past three years. This is very encouraging and important if The Department is to achieve the stated aims of this programme.

It is important that we continue to encourage beneficiation, bearing in mind that the mining houses do beneficiate in the primary stage of our raw materials. The IFP believes however, that more jobs can be created if more focus is paid to beneficiation of the final product as well. This, in our view, remains a major challenge.

The Richards Bay coal terminal appears to have a few problems. I have been informed that the construction of the additional facility is underway but the rail facility which is operating at capacity at the moment will be unable to carry more coal, thereby restricting job creation, as was intended by the construction of the additional facility.

The Inkatha Freedom Party expresses its concern about the price of fuel. We do appreciate the fact that external forces, beyond the control of the Minister and her Department affect the fuel price. The strengthening of the rand has been marvellous in regards to balancing the fuel price. However, it has had a negative effect on the mining industry, resulting in many job losses. The dilemma still remains what the Rand - Dollar exchange rate should be. While the person in the street is happy with a strong Rand, industry prefers a weaker rand. Some Provincial Governments are thinking of an additional fuel levy, which will hurt the motorist and public even further. The IFP once again places on record its concern about the misuse of the Road Accident Fund, especially as it has a direct impact on the price of fuel.

The Mining Qualification Board has a wonderful six months training for introduction into the mining industry. I hope that all the members of the Portfolio Committee will have an opportunity to attend. The Mining Qualification Board has also embarked on jewellery training, small scale mining and 1500 learners and ex-mine workers training project for 2266 trainees in ten district municipalities at a total cost R 37 million.

The Free Basic Electricity Programme has unfortunately not reached the poorest of poor, mostly in the rural areas. The cost still remains high and whilst there is remarkable improvement in the supply of electricity the challenge still remains, especially in rural areas.

There is a need to assure people that the use of nuclear energy is safe. The report by Earthlife Africa at Pelindaba was very alarming and many people are still concerned. The Inkatha Freedom Party therefore proposes that Earthlife Africa and the Department jointly carry out tests thereby removing any doubt about the test result correctness. It is important that the people of the area are reassured and feel safe.

With these remarks, the Inkatha Freedom Party supports the budget vote.

The major challenge, however, still remains job creation.