SPEECH DELIVERED BY M GONIWE, ANC MP DURING THE DEBATE ON BUDGET VOTE 31: MINERALS AND ENERGY APPROPRIATION BILL

15 May 2003

Madame Speaker
Madame Minister
Madame Deputy Minister
Honourable Members

Today's debate takes place against the backdrop of massive and decisive advances made in addressing the key challenge facing our country - pushing back the frontiers of poverty. We are of the firm view that our achievements should be measured by the extent to which we contribute to pushing back the frontiers of poverty, redressing the imbalances of the past and thereby providing a better life for all.

In this context we boldly submit that when the history of this county is written, the pioneering role the Department of Minerals and Energy played in designing and effecting broad-based socio-economic empowerment strategies will feature prominently.

Apartheid, by excluding the majority of South Africans from meaningful participation in the economy, denying them skills, stripping them of their assets and undermining their communities, concentrated wealth in a small racially defined elite. This is the structure of the economy that we have inherited; our historical challenge is to transform this economy.

It is not merely enough to remove the barriers of apartheid; we need to proactively redress the wrongs of the past. We need comprehensive strategies which will guarantee access to the economy for those previously excluded at all levels, while at the same time increasing the overall competitiveness of our economy.

Black economic empowerment should provide rapid access to ownership, management and control of economic activities for previously disadvantaged South Africans, as well as socio-economic development, better working conditions and remuneration, development in rural areas and opportunities for small and micro-enterprises in as many parts of the economy as possible. The consequences of failing to achieve this will be severe for us all.

The 20th century saw immense development of our mineral and energy resources, yet the majority of the population did not benefit - on the contrary - more often than not they paid for this development with their blood and their sweat, and not infrequently their lives.

The challenge of the post-apartheid era is to transform these sectors to secure a sustainable future for all. This is the core of this government's minerals and energy policy. More specifically, the concept of broad-based socio-economic empowerment, pioneered in the minerals and energy sectors, provides for a comprehensive transformation of our economy, from the boardrooms of our mining giants to the remote rural areas.

We should recognise the pioneering role played by the Liquid Fuels Charter, the first blueprint for the transformation of a sector of our economy.

White Papers outlining government's vision for the transformation of the minerals-energy complex were tabled in 1998. In the last year, however, we have really begun to see the fruits of this transformation. Some key milestones deserve mention:

We must also congratulate the Minister on her recent receipt of the highest accolade from the National Union of Mineworkers, in recognition of her championing of the cause of ordinary people in our country, in this case mineworkers, who bear the brunt of injury, death and ill health in the mining industry. This is a testament to the broad-based nature of the empowerment that the Minister is promoting.

As we implement more and more post-apartheid legislation, the role of both the Department and its associated regulators increases in importance and complexity. Good governance is extremely important, both in the state sector and in the private sector. We are pleased that recent problems in some of these institutions have been resolved openly and even-handedly; the conduct of our institutions and those who work in them should be beyond reproach, and it is the responsibility of every citizen in our country to report corruption or maladministration.

Nevertheless, there seems to be a growing trend, in the media and elsewhere, to portray black leadership, in government institutions and business as being corrupt and incompetent. Managers and leaders should be evaluated on their merits alone, without reference to race.

Finally, in congratulating the Minister, her department, and the associated institutions on another year of outstanding achievement, we note that the Department still has significant capacity constraints. The more we transform the governance of the minerals and energy sectors, the more responsibilities we create for the Department and associated institutions. It is imperative that this should be recognised in the budget process, if we are to realise the full potential of these sectors for our society and our economy.

I thank you