PIETERMARITZBURG: 21 July 2009

Madam Speaker, The Honourable Premier, and Honourable Members 

Madam Speaker, this budget debate takes place at a most crucial time in the life of our province and as Leader of Official Opposition I have the responsibility to critically examine it as well as its impact on the various sectors of our society. Let me start by acknowledging that many mistakes were made by the previous administration and, while that is perhaps inevitable for a five-term administration, the new administration must nonetheless recognize these mistakes and learn from them. 

The province's five-year report for 2004 - 2009 identified rural areas as having the highest annual inflation rate of 13.3% which is higher than the national average.  The report also identified the need for improved integration of government programmes, partnerships with the private sector to boost economic growth, and development programme for better co-ordination on HIV / AIDS, agricultural production and poverty eradication.  However, to government's credit, by early this year all our 61 municipalities had adopted development plans and improved service delivery. 

As this is our first budget debate to be presented by this government since the April 22nd watershed elections, it is important that we examine it with a fine comb, as well as the related policies and programmes set out in the ruling party's manifesto and its policy statements, and that we also look at the performance of this administration's short innings of the first 100 days in office.  The last three months have seen some issues being the subject of debates and speculation in the public discourse.  

Debates about the nationalization of mines and other parastatals and the exposing of corruption have been the two key issues that have defined the new government.  Corruption seems to have entered a high gear and it has been institutionalized in the public service. 

Last week started with the suspension of the head of SA Social Security Agency (SASSA) over alleged misuse of funds, followed by a damning report of the Public Service Commission about lack of financial disclosure by some 8 545 senior managers in the public sector.

According to the PSC, at least 434 managers have potential conflicts of interest between their jobs and their personal business interests. 

The Auditor-General's much publicized report has shown that some 2000 public servants have pocketed about R600 million, through the state contracts since 2004/05 financial year. Under these circumstances most Director-Generals of provinces including our own have admitted to national SCOPA that they have not done anything about this depressing tale of impunity.  Suspension of some public servants on full pay goes on endlessly, often ending quietly with golden handshakes amounting to millions of rands. 

Madam Speaker, the budget is not simply about the next twelve months but is the first year of a strategic plan for the Medium Term Framework.

While it has to be responsive to short term challenges, it must weave these responses into the long term framework in such a way that it is consistent with, and at least avoids compromising, long-term effectiveness. A budget is also a statement of priorities, not just an accounting exercise.  The stated priority of government is putting people at the centre of the policy focus, which sounds similar to the theme of the President's State of the Nation address. 

Never in the history of our country did our people have to contend with such burdensome mortgages, punishing food and fuel costs, crushing cost of private medical care, devastating electricity bills, increasing rents and leases, increasing mortgage rates on house bonds, mounting tuition costs, mounting personal debts, suffocating interests on loans, salary cuts, redundancies and job losses. 

Owning a home is the dream of every person. However, the high interest rate regime and the worsening economy are converting that dream of owning a home to a nightmare.  The reality is that many people live in fear of losing their homes and still others are doubtful of ever owning their own home.  Colleagues, if it is not us, elected members in this House that should find solutions to the challenges our people are facing, and then really whose responsibility is it?

Standing here today speaks volumes to the fact that I am still very optimistic about the future of this great province despite the global financial crisis.  As we acknowledge the global financial meltdown, we must also properly assess and quantify the local component of the problems with which we are faced.  No one can seriously participate in a discussion at this level without those acknowledgements.  It is against that background, that I make my presentation. 

The provincial budget is to be considered as the blue print for development in the fiscal year for which it applies.  More than a combination of expenditure and revenue projections, the provincial budget should be founded in a social framework that centralizes and emphasizes the hopes and aspirations of the people. We on this side of the House strongly recommend that this administration has a responsibility to forge a partnership with the people of KZN and to agree with opposition to a blueprint that takes us through the crisis of some R3-billion budget overdraft while not affecting service delivery. 

Government has stated that health is one of the six priorities of this administration.  As leader of Official Opposition, I have indicated in my weekly newsletter two weeks ago that the IFP welcomed the decision taken by medical doctors to suspend their industrial action over OSD, that had disrupted public hospitals across the province and that had cost the taxpayer an estimated of R10 million. The doctors' strike was a clear sign of desperation and frustration with their working conditions and also revealed government's apparent inability to deal with the strikers or, for that matter, the impact of their industrial action on one of the important areas of service delivery.  Government has learnt the hard way that turning for help to the private sector as it did in the case of dozens of ICU patients in KZN may have cost more in principle than acceding to the employees' salary demands. 

In a time of crisis, as seen with that industrial action, one of the most fundamental factors is that government leadership must enjoy the trust and confidence of the people.  This trust factor allows the strikers to believe and feel confident that their leaders have their interest at heart. The test is in not just what is said but more importantly what is done. It is not just proclamation - it is also demonstration.  Recent media reports indicate that some 2000 people are now on the waiting list for ARV medication at Edendale Hospital, which stopped giving new patients ARVs some 10 weeks ago.  Regardless of the challenges that the ailing health care system faces, it is not acceptable to stop the initiation of new patients onto ARV therapy.

Many studies have shown that if ARV treatment is delayed for patients with low CD4 counts and opportunistic infections, this results in unnecessary illness and premature deaths. 

KZN is faced with a major challenge. There is a global component and there is a local component.  In the mid 1990s as it became clear that the modern challenges of the day were not bounded by national borders the United Nations coined the phrase: "Think Globally - Act Locally".

This was the guiding theme in the Global Fight against HIV/AIDS epidemic. In the wake of the new situation that the world now finds itself, grappling as we all are with the great economic challenges of our day, I commend this approach to our province. We must forge a strategy of Thinking Globally, Negotiating Regionally, Planning Nationally and Acting Locally.  Nothing can be left to chance. We must be proactive and targeted and we must enlist all our people in this important provincial objective. This year more than any other in our recent past, we must all come to our province's rescue. 

Each of us will be required to do better in our dealings with the people we serve and with whom we come in contact. The economic situation and budget overdraft that face us have given a clear indication of how interdependent we all are for our survival as a province. The current provincial experiences have also given clearer meaning to the concept of people-centred policy and the need to balance people's lives as we keep focus on balancing the provincial books.  Unless both are prioritized, our targets will be missed and our efforts shall be in vain. 

There are some issues and areas of significant importance where there is an imperative for action and I wish to suggest that we should cooperate to move the province forward.  Both sides of this House will need to adopt basic civility in our mutual dealings, by putting the interests of the province before political partisanship at all times, and by respecting the role of opposition in all matters of public importance.

Let us in this House all set aside the differences that separate us and focus on the bonds that unite us. 

I thank you.

Contact:
Dr Bonginkosi Buthelezi
082 516 0156