Madame Speaker,  

I have been a member of the Portfolio Committee on Minerals and Energy for many years and I believe that during this time I have always been fair in my appraisal of the department's performance. While there have been areas of weakness I do believe that in the past the department has performed relatively well, but that it is now in a very difficult and challenging period. 

It is easy to be a leader in times of prosperity and when all is going smoothly, as was the case with our economy and this department for many years. The true test of good leadership, however, is during times of difficulty and uncertainty as is now the case. It is not as easy to accept the responsibility and accountability that comes with failure and criticism as it is to accept the compliments and praise of success. This department is facing many difficulties and, hence, needs its leadership to stand up and make the bold and innovative decisions required to keep it on course to meet its aim, which is to formulate and implement an overall minerals and energy policy to ensure the optimum use of minerals and energy resources. It is also important that people with the necessary skills and knowledge are appointed to key positions within the department so as to allow the department to function optimally in pursuit of this aim. 

A look at the 2006/07 Annual Report of the department reveals that the Electricity and Nuclear Programme as well as the Hydrocarbons and Energy plan Programme had very high vacancy rates, 43.9 % and 52.6 % respectively, among permanent staff during the period under review. This high rate is not good for the department and will hamper its performance. If it has not as yet, we urge the Minister and her senior personnel within the department to correct this situation and ensure that this vacancy rate is decreased and the department is properly staffed with skilled people who will contribute to the achievement of the aim. 

The energy crisis and the high fuel prices are just some of the issues that are having a detrimental effect on our economy and society, and this department can and must play a leading role in providing some relief in this regard. Innovative leadership and planning are needed. These crises must spur this and all departments and relevant role players into action to contemplate our long term energy needs and issues, and take the necessary actions needed to ensure that our future with regard to energy is bright.

This period of crisis must be used to consider and examine all aspects of our energy and not just our energy security. Other aspects like technology, innovation and the environment, with regard to energy must also be examined. 

The price of fuel has increased yet again and this will no doubt cause the already high prices of goods to become even more expensive and eventually unaffordable to many. These high prices will push the poorest members of our society even further into the depths of poverty. While we do understand that the incredibly high crude oil price is a global phenomenon we, in the IFP, believe that this department can do more to protect the end users from the suffering that these exorbitant prices inflict. For a start, we feel that the various factors, such as levies and taxes, which contribute to the basic fuel price paid at the pump, need to be re-examined so as to determine whether adjustments can be made which will result in savings for the man on the street.  

While the ever increasing prices of petrol and diesel get attention, that of paraffin does not. We seem to forget that many South Africans, especially the poor and those living in rural areas, are still reliant on paraffin for their energy needs. This department, together with the oil companies and all other relevant stakeholders, must consider all options including the provision of subsidies, to make paraffin more affordable and ease the pain and suffering of the many people who are still dependant on it. This would be real socially responsible and acceptable behaviour.  

The mistakes that were made by the governmental departments and stakeholders, including this department, in the events which led to the energy crisis are well documented. We hope that those mistakes will not be repeated and that the lessons learnt will be taken to heart and serve as a reminder of the importance of proper and insightful planning and leadership.

The main objective should now be to ensure a reliable and affordable supply of energy as well as to educate the nation about the efficient and sustainable use of energy.  

The high interest rates, coupled with the ever increasing fuel and food prices contribute to the extremely high, and for some unaffordable, cost of living in South Africa. Any attempts to increase the price of electricity more then the inflation rate will only compound this problem and increase the vulnerability of the poorest members of our society, and we, in the IFP, will oppose any such attempts. Increases should be implemented over a period of time so as to allow consumers time to adjust to the situation and not an unaffordable once off increase as proposed by Eskom. We do understand that large sums of capital must be raised for Eskom to increase its generating capacity to meet the demands of a growing economy and population, but this capital must not be raised at the expense of the ordinary citizens of South Africa as they just cannot afford it.  

Issues concerning the environment have taken on greater importance in recent times, and this must be kept in mind when expanding our generating capacity.

I do understand that in the short to medium term renewable energy sources will not be sufficient to meet our energy demands, but I do believe that we must invest more time, resources and effort  into the investigation and development of renewable energy sources that will complement our unique African circumstances and not compromise the food security of our people.  

The promotion of small scale mining operations and the beneficiation of our natural mineral resources have been on the national agenda for many years.

These two sectors can and must play a bigger role in the economic and social development of South Africa. The progress with regard to their promotion has, however, been too slow and this is resulting in valuable opportunities being lost.  

With regard to small scale mining operations, there are still too many obstacles and entry barriers to overcome for people and organisations wishing to enter this field. Chief among these barriers is the large capital outlay required to start up an operation and the difficulty in obtaining affordable financing as well as a lack of technical support. If the department is really serious about the promotion of small scale mining, and I think it is, then it must make a greater effort to provide the support, both financial and technical, required by potential entrants hoping to participate in small scale mining ventures.

Mining has played a leading role in the development of our economy and country so it is unfortunate that after all these years we have still not made any great inroads into beneficiating our wealth of natural mineral resources. The beneficiations of our minerals is an opportunity that must be exploited as it can open up new avenues, and provide a much needed boost for the mining sector and the economy as a whole. The department must increase its efforts at the promotion of beneficiation.

Madame Speaker, the contribution of this department to the development of South Africa and its people has been great. I do, however, believe that much more can be done to ease the hardships that we are currently facing and improve the lives of many more South Africans. The energy crisis and the high fuel prices, in particular, are areas where leadership from this department is sorely needed. Now, during these testing and uncertain times, is when we really do need the department's leaders to stand up and make use of their resources to increase their contribution to our country's development. I would especially like to see the department playing a bigger role in, and putting more effort into, the development of our rural areas which have largely been ignored.

The IFP supports this budget vote.

I thank you.
 

FOR MORE INFORMATION CONTACT
Mr Eric Lucas MP:
 082 557 2481