FINAL MANDATE

WESTERN CAPE PROVINCIAL PARLIAMENT

09 MARCH 2005

 

COMMITTEE REPORT:

Report of the Standing Committee on Finance and Economic Development, on the Division of Revenue Bill [B8B-2005] (NCOP), dated 9 March 2005, as follows:

 

The Standing Committee on Finance and Economic Development, having considered the subject of the Division of Revenue Bill [B8B-2005] (NCOP), referred to the Provincial Parliament in terms of the rules of the National Council of Provinces (NCOP), begs to report that it confers on the Western Cape’s delegation in the NCOP the authority to support the Bill with the following amendments.

MR GR STRACHAN

CHAIRPERSON

Section 11(2) reads,

The National Treasury must publish the allocations and frameworks for such allocations in the Gazette, prior to the transfer of any funds to a province or municipality.

Should read

The National Treasury must publish the allocations and frameworks for such allocations in the Gazette, within 30 days after the transfer of any funds to a province or municipality.

Section 15(2)(b) reads,

Ensure that administrative processes and procedures comply with all requirements set by the transferring national officer;

Should read

Ensure that administrative processes and procedures comply with all requirements set by the transferring national officer and agreed to by the respective receiving officers.

Section 15(2)(c) reads,

Ensure that social assistance transfers and administration spending are in accordance with the approved payment schedule for each type of social security grant included in the Social Assistance Transfer allocation, and administration for each month of the year.

Should read

Ensure that social assistance transfers and administration spending are in accordance with the approved payment schedule for each type of social security grant included in the Social Assistance Transfer allocation, and administration over the period of the financial year.

Section 15(5),

Over expenditure attributable to non-compliance with legislative requirements and poor management procedures must be funded from the Provincial Revenue Fund, unless National Treasury determines otherwise.

Over expenditure on other conditional grants results in the relevant department being liable. This section holds the Provincial Treasury liable for over expenditure on the Social Security grant which is inconsistent with that of other conditional grants.

In addition, the Social Security function will be shifted from the Provincial to the National sphere of government from 1 April 2005, Provincial Treasury will therefore be held liable for over expenditure of a national function which is untenable.

Section 16(1) reads,

Any transfer of an allocation aimed at developing and improving municipal systems and the capacity of municipalities to perform function assigned to them, may only be made in terms of a framework determined by the national accounting officer responsible for local government, in consultation with National Treasury.

Should read

Any transfer of an allocation aimed at developing and improving municipal systems and the capacity of municipalities to perform function assigned to them, may only be made in terms of a framework determined by the national accounting officer responsible for local government, in consultation with both Provincial and National Treasury.

Section 17

Section 17 should be removed in its entirety from the DoR Bill.

Section 154(2) of the constitution reads – Draft national or provincial legislation that affects the status, institutions, powers or functions of local government must be published for public comment before it is introduced in Parliament or a provincial legislature, in a manner that allows organized local government, municipalities and other interested persons an opportunity to make representations with regard to the draft legislation.

It is not 100% certain that all interested parties have been given the opportunity to comment on the DoR Bill. If this is the case, then this section should be removed.

Over and above constitutional requirements, amending other legislation through the DoR Bill makes legislation administratively difficult to manage as it becomes hard for persons to keep track of the changes.

The DoR Bill has a shelf life of one year, are amendments made to other acts in the Bill also repealed when the DoR Bill is repealed at the end of the financial year. Which Act has the overarching power. How will persons working with Housing Act know that amendments have been made to the Act within the DoR Act?

Section 17(5)

Even if the decision is taken to keep Section 17 in the Bill, section 17(5) should be removed for the following reasons.

Sections 9 and 10 of the Municipal Systems Act are pursuant to the Constitution and in disregarding these sections in the DoR Bill the constitution is being disregarded.

Section 9(3) of the Local Government: Municipal Systems Act, 2000 states that the cabinet member, Deputy Minister or MEC initiating the national or provincial legislation referred to in subsections (1) and (2), must take appropriate steps to ensure sufficient funding and capacity building initiatives as may be needed, for the performance of the assigned function or power by the municipalities concerned.

Disregarding this section in the DoR Bill allows the allocation of the housing function to municipalities to be an unfounded mandate.

Section 35 add,

35(2) – Prior to the aforementioned re-allocation of funds, National Treasury must address any issues which may have led to the under expenditure in Provinces or municipalities.