FINAL VOTING MANDATE ON THE DIVISION OF REVENUE BILL [B4B-2004]
Tuesday. 2 March 2004
The Chairperson of the Finance Committee, Ms J L Fubbs. tabled the Final Voting Mandate on the Division of Revenue Bill [B4-2004] as follows:
1. PROCESS FOLLOWED The Standing Committee on Finance deliberated on the Division of Revenue Bill [B4B 2004], a Section 76 Bill, which was introduced in the National Assembly and tabled a Negotiating Mandate on Monday, 1 March 2004.
- The Division of Revenue Bill was informally referred to Finance Committee on Friday. 20 February 2004 in terms of Rule 6.48(1) prior to the formal referral to the Committee on Friday, 27 February 2004 in terms of Rule :3.49(1 )(c).
- The Finance Committee deliberated on the Division of Revenue Bill on Tuesday. 24 February 2004; Thursday, 26 February 2004; Friday, 27 February 2004 and on Tuesday. 2 March 2004.
- The Chairperson of the Finance Committee, Ms J L Fubbs, Mr M H Seloane as well as the Researcher, Mr M Youash who attended a briefing on the Bill at the NCOP on Wednesday, 25 February 2004 briefed the Finance Committee on Thursday, 26 February 2034.
- On Monday 1 March 2004, Mr M H Seloane presented the Gauteng Legislature's Negotiating Mandate at the NCOP and briefed the Finance Committee on Tuesday, 2 March 2004 on the deliberations at the NCOP.
The NCOP deliberations required a legal opinion on the nature of three proposed amendments. The legal opinion was sent to the Committee for its consideration on the morning of Tuesday,2 March 2004.
- The Finance Committee adopted the final Voting Mandate on Tuesday, 2 March 2004.
2. PRINCIPLE OF THE BILL The principle of the Bill is informed by Section 214(1) of the Constitution and the lntergovernmental Fiscal Relations Act, 1997 to provide for the following:
- The equitable division of revenue raised nationally among the national, provincial and local spheres of government
- The determination of each province’s equitable share of the provincial share of the revenue;
- Any other allocation, to provinces local governments or municipalities from the national government’s share of that revenue, and any conditions on which those allocations may be made; and
- Section 214(2) of the Constitution requires that the Bill may only be enacted after the provincial and local spheres of government and the FFC has been consulted, and after any recommendations of the FFC have been considered.
3. DETAIL OF THE BILL
The Finance Committee’s concerns raised in the Negotiating Mandate are of a longer term nature and related to the coming comprehensive review of the Intergovernmental Fiscal Relations System. In particular,
- National Treasury acknowledged the substantive issues raised in Gauteng’s Negotiating Mandate;
- Legal opinion from the Parliamentary Legal Services Office confirmed that the proposed amendment of a financial year in the text of the Bill is of a technical nature, and that the proposed name change of "Thusanang" municipality to "Dikgatlong" by the Northern Cape Legislature could amend to a substantive change and should therefore be left as is because it will not affect the financial transfers to the municipality.
4. CONCLUSION The finance Committee unanimously supports the principle and the detail of the Division of Revenue Bill [B4B-2004] as negotiated in the meeting of the Select Committee on Monday, 1 March 2004 at the NCOP.
5. FINAL VOTING POSITION ADOPTED BY THE COMMITTEE In terms of section 65 of the Constitution, the Finance Committee recommends that the House confer authority on the Gauteng Provincial Delegates/ to the NCOP to vote in favour of the Division of Revenue Bill[B4B-2004]
GAUTENG PROVINCIAL LEGISLATURE
RESOLUTION
Tuesday, 2 March 2004
I , the Chairperson of Chairpersons Committee, Mr G M Nkomfe, hereby table the following resolution in terms of Rule 2.12:
That this House adopts:
the report of the Portfolio Committee on Finance regarding Final Voting Mandate on the Division of Revenue Bill[B4B-2004]-Section 76
PROPOSER : MR NKOMFE
CHAIRPERSON OF CHAIRPERSONS COMMITTEE