ADDRESS BY BA MARTINS, ANC MP DURING THE DEBATE ON PUBLIC ENTERPRISES

Issued by African National Congress - Parliament

12 April 2003

Madam Speaker
Your Excellency Deputy President Jacob Zuma
Honourable Minister of Public Enterprises
Esteemed Members of Parliament

Nine years since the historic advent of democracy in 1994, government has made steady progress in addressing apartheid's dubious legacy of inequality and abject poverty.

This has required the development and implementation of substantial programmes for expanding service delivery and confronting the stubborn socio-economic disparities still found within South African society.

This state of affairs has further required ensuring sustained economic growth in a mercilessly competitive and volatile global setting - whilst at the same time consolidating democracy and a culture of human rights, reconciliation and peace.

Two successful rounds of democratic elections have also seen the consolidation of democracy.

If truth be told - and it must be told: the ANC has steered the ship of state well in these sometimes rough and stormy waters. It has charted a path of more effective and speedier transformation towards development, and an improved quality of life for all South Africans, especially for workers and the poorest of the poor.

The evidence of concrete experience tells us that the historic positions of the ANC on state assets restructuring, remains correct and valid. These positions have sought to redirect State-Owned Enterprises towards the developmental goals of the state. In the context of the many complex challenges facing our society, a case-by-case approach to restructuring informed by the balance of evidence continues to be central to this process.

There are still some people however who think that restructuring is simply another polite word for privatization. Restructuring is a far more complex process with a variety of options and results. Those averse to a powerful developmental state, constantly appeal to reduce that state's involvement in economic activity and wish even to curtail its regulatory functions in favour of naked market forces.

Adherents of this approach view the state sector and state owned enterprises in democratic South Africa as nothing more than single-opportunity cash cows to be milked to death once and for all, through the wholesale disposal at bargain basement prices, to consolidate the even greater concentration of capital in select private hands in South Africa. The same people decry infrastructure investment as unprofitable; and the improvement of peoples' social conditions as patronage.

Honourable Members

State Owned Enterprises, must continue to meet the developmental goals of South Africa. The objectives of the restructuring of state owned enterprises which include: increased efficiency, enhanced service delivery, mobilization of private sector capital, economic growth, employment, human resource development and black economic empowerment should be pursued with increased vigour.

Proceeds realized through the restructuring of state owned enterprises since 1997 amount to R27,6 billion, of which R18,4 billion was paid to the National Revenue Fund. The government's programme of restructuring various State assets remains an integral part of the broader reconstruction and development of South African society. It is envisaged that restructuring will improve the overall competitiveness of the country's economy both from a macro and micro-economic perspective by lowering production input costs in the economy. By lowering the costs to consumers it promotes wider access for consumers to affordable services.

Significant progress has been made in the restructuring programme. Key achievements for 2002-2003 are progress in the restructuring of Denel, Transnet and various non-core entities. The focus of restructuring activities for 2003-2004 and beyond will be on the energy, forestry and transport sectors.

The public debate about restructuring confirms the fundamental reality of our society. State-Owned Enterprises permeate almost all aspects of our lives on a daily basis. They provide the essential services such as electricity and transport critical to our goal of a better life for all.

It is thus important that State-Owned Enterprises remain accountable to the public and it is important that they administer their prices within acceptable levels.

We are further concerned about the impact of some of the recent price increases on poor households, especially that of Eskom. Honourable Minister, I wish to call on the Department to ensure that this matter is addressed as a matter of urgency.

A related matter where we think there should be clear policy is the allocation of performance bonuses for management. Whilst recognizing that performance bonuses are a legitimate way of providing incentives, it is important that State-Owned Enterprises do so within a Policy Framework, so that there is both transparency, and that such a process is not manipulated.

Honourable Minister, concerns have also been raised about safety in our trains. I am aware that safety is a transport function. However, as the Shareholder Department, I should think that there are interventions that could be made by Metrorail and Transnet in this regard. We are also concerned about the ongoing legal dispute between Metrorail and civil society organizations, especially in the Western Cape.

We accept that restructuring will serve to integrate the country's public, private and social capital and expertise to maximize South Africa's economic growth.

Under our democratic dispensation, political democracy without economic democracy will have no true meaning. Our Constitution entrenches both civil and political rights as well as economic rights. In sum what we describe as quality of life, flows from the structure and management of the economy.

The ANC remains dedicated to: creating a better life for all our people; and to pushing back the frontiers of poverty. The ANC supports this vote.

In conclusion: ten years ago today, when I received a phone call informing me about the assassination of Comrade Chris Hani, the following words by Brecht acquired a new meaning for me: