The Congress of South African Trade Unions (COSATU) presented its submission on the Appropriation Bill to the National Assembly’s Standing Committee: Appropriations allocating funds to Departments, Entities and State-Owned Enterprises in the 2024/25 financial year.
We welcome the progressive allocations contained in the Appropriation Bill, especially the massive R943 billion investments in infrastructure over the Medium-Term Expenditure Framework, particularly in water, roads, schools and sanitation. If fully spent, these will help overhaul and modernise aging infrastructure and provide a massive boost to the economy and job creation. We however remain concerned that more should have been done to reinforce and invest in the frontline services society and the economy depend upon.
Key to growing the economy and creating jobs is resolving network and logistics blockages. We welcome the R253 billion debt relief for Eskom and the massive strides Eskom workers have made overcoming loadshedding and efforts to ease municipal debt. To ensure loadshedding does not return and unlock new generation capacity, government must fast track the planned 14 000 kms in new transmission lines.
Whilst there has been progress easing port congestion, Transnet needs to be given further support to ensure it is able to provide the logistics support required to unlock the mining, manufacturing and agricultural sectors and help save and create thousands of badly needed jobs. We welcome the R47 billion loan guarantee provided to Transnet.
Similar intervention plans are needed to stabilise and rebuild other embattled State-Owned Enterprises (SOEs), in particular Metro Rail, the Post Office and the Postbank, Denel and the South African Broadcasting Corporation. Retrenching 6 000 workers at the Post Office threatens the revival of this entity. The revival of South African Airways is positive news.
The planned intervention and capacitation programmes in 140 municipalities to tackle corruption, reduce wasteful expenditure and improve municipal service delivery is key to rebuilding struggling municipalities and ensuring the massive R943 billion (R486 billion by SOEs and R214 billion by municipalities) infrastructure programme is spent well.
The SRD Grant and the Presidential Employment Stimulus have been critical poverty and employment interventions. The SRD Grant lays the foundation for the Basic Income Grant. It needs to be raised to the Food Poverty Line and its participants linked to skills and employment opportunities. The Presidential Employment Stimulus is key to tackling youth unemployment and needs to be increased not reduced.
COSATU remains deeply concerned about the impact of cuts and below inflation budget adjustments to several frontline departments and the effect these have on their ability to deliver quality public services. Society depends upon well-functioning public services. The below inflation increases to Health, Industrial and Exports Programmes, Agriculture and Defence are concerning. Cuts to the CCMA, Home Affairs, Metro Rail and the electrification programme will have a dire impact on their ability to deliver upon their mandates.
Above inflation increases for schools, the Police, Courts, housing, roads and especially water infrastructure are welcomed. The tax incentives for the local manufacturing of electric vehicles and an additional R1 billion in industrial financing will be a positive injection for motor manufacturing jobs. The increase in the Police headcount is positive but needs to be increased to reduce the high levels of crime. Similar increases in skilled personnel are needed in the National Prosecuting Authority and the Courts.
The public service wage bill, contrary to neo-liberal propaganda, is not out of control at 31% of the budget. In fact, it has decreased from 35% and this is resulting in rising vacancies amongst doctors, nurses, teachers, police and other essential frontline workers. The state cannot run on tables and graphs. It requires skilled professionals if it is to deliver the quality public services society depends upon.
Government has done well rebuilding the South African Revenue Service. Whilst the additional R1 billion allocated to it is welcome, more should be given to SARS to boost tax compliance, tackle customs fraud and thus bring the revenue the state requires.
It is critical Parliament increase its oversight role over departments, entities, municipalities and SOEs, to ensure funds are spent correctly, and corruption and wasteful expenditure are substantially reduced.
Issued by COSATU.
For further comment please contact:
Matthew Parks
Parliamentary Coordinator
Cell: 082 785 0687
Email: matthew@cosatu.org.za
Cape Town, South Africa