Southern African Catholic Bishops’ Conference
PARLIAMENTARY LIAISON OFFICE

THE BASIC INCOME GRANT:
ERADICATION OF POVERTY

SUBMISSION ON THE CONSOLIDATED REPORT OF THE COMMITTEE OF INQUIRY INTO A COMPREHENSIVE SYSTEM OF SOCIAL SECURITY FOR SOUTH AFRICA: ‘TRANSFORMING THE PRESENT – PROTECTING THE FUTURE’

9 & 10 ^Th June 2003

Introduction
This submission on the Report of the Committee of Inquiry into a Comprehensive Social Security System for South Africa focuses on the issue of providing universal income support as a means of realizing the constitutional right of access to social assistance for adults and children living in poverty.

Key findings of the Committee of Inquiry
The following findings of the Committee are of particular relevance to the government’s obligation to ensure universal access to social security as required by the South African Constitution:
Depending on precisely which poverty line is used; between 45 – 55% of South Africans are living in poverty (between 20 – 28 million citizens).
Income distribution in South Africa is highly unequal;
High unemployment, including the massive net loss of formal sector jobs, and the growing shift towards peripheral, insecure work is exacerbating the poverty situation;
The impact of the HIV/AIDS epidemic will exacerbate poverty and inequality
The patchwork of social grants is inadequate to meet the challenge of stamping out extreme poverty, and there are enormous gaps in the current system… Poor adults under the age of 60/65 years at which point they qualify for a grant for the aged have no social security assistance. Currently about 60% of the poor, or 11 million people, are not covered by the current social security system. As expressed by the Committee: "Half of the poor live in households that receive no social security benefits at all, and the rest remain poor in spite of the benefits they receive."
From a comprehensive social protection framework, "the existing programme of social assistance grants is considerably high cost relative to its level of social effectiveness."

One of the main findings of the Committee, based on extensive research, is that "that one of the most effective means of reducing destitution and poverty is to provide some minimum support in the form of a social assistance grant." The major policy recommendation of the Committee is the phasing-in of a basic income grant as its analysis indicates that it "has the potential, more than any other possible social protection intervention, to reduce poverty and promote human development and sustainable livelihoods."

Southern African Catholic Bishops Conference Position
We strongly endorse the underlying philosophy of the Committee of Inquiry’s Report that social security reform should form part of a comprehensive social protection "package". This should be "designed to ensure, collectively, at least a minimum acceptable living standard for all citizens."

The basic income grant will contribute to fulfilling a key aim of comprehensive social protection to guarantee a minimum acceptable living standard, as well as the objective in the White Paper for Social Welfare of 1997 that "all South Africans have a minimum income, sufficient to meet basic subsistence needs, and should not have to live below minimum acceptable standards."

The basic income grant will also benefit particularly vulnerable groups such as women and children living in poverty. It will substantially increase net household resources whereas an exclusive focus on children’s social grants overlooks the fact that the entire household will consume whatever grant one gives for the child. R100 will be like the Biblical mustard seed, very small, but once planted on fertile soil and taken care of, it will grow into a big tree where birds can make nests and live in its branches (Matthew 13:31-32). And ultimately, even the poorest of the poor will have the opportunity to become independent of outside assistance.

It is unjust that some people in the same country should live in luxury while others exist in grinding poverty. The continued denial of access to social assistance for the majority who are poor, coupled with increases in the prices of basic essentials such as food continues to crush down the poor.


It is the churches’ concern in light of the principles of the Common Good and the Preferential Option for the Poor crystallised from its Social Teachings that the necessary, legitimate and acceptable conditions conducive to meeting the needs of the greater community be met. The common good is the good of the majority of people, not of minorities. The common good is the meeting of individual needs and the needs of the community at the same time. The good of all is to be observed. If we do something that prevents other people from meeting their needs, then we are harming others, and because we are linked to and depend on these people for our good, we will ultimately harm ourselves. In reality not enough people work in solidarity with others for the common good. These results in many people being materially poor being disadvantaged, oppressed and marginalised in society. The needs and problems of the poor, the oppressed and the marginalised tend to be ignored in our country.

Conclusion
The implementation of the Basic Income Grant will improve the lives for all poor South-Africans and will help bridging the gap between those who have and those who have not.