BY
HON MR LOURENS DE KLERK IFP MPL
Madam speaker and Honourable members.
Just a few months ago we debated the 3rd Quarter Reviews. A dismal picture was painted by the MEC for Finance regarding the performance of the Municipalities in KwaZulu Natal. Today it is de ja vu as nothing has changed much. As a matter of fact the situation is worse!
The report explains the current financial position of the Republic of South Africa and also the province of Kwazulu Natal with the country’s economic growth outlook for this year of only 0.6% down from 1.1% forecast for January 2017.
This dismal growth is also compounded by a projected tax revenue shortfall of R50 billion and that we as a country will be downgraded further very soon.
On a political level there is uncertainty within the ANC. Corruption is on everybody’s lips and is so overwhelming that it drowns out any ray of light , hope or positive thinking.
Unemployment is rising unabatedly. But it seems that the reality of our economic financial position is not fully understood by the governing party.
It is the governing party’s policy that they believe in a developmental state which means that government plays a central and active role in the economy. This policy mistakenly believes that government can have a positive impact on the economy.
It then goes without saying that on its own admission the ANC has failed in the execution of their developmental state, as the economy is not growing and the poor remain poor and vulnerable!!!
That is the socialist and communist biggest error to believe that growth can be stimulated by government intervention through statist policies but in truth it is only a free market that can positively support growth.
The reality of this misunderstanding of economic principals is now clear for all to see and that is a stagnant economy. The result is that there is no money there can be no social progress and it doesn’t matter what John F Kenney says. The old age saying rings true-“Money talks”.
Notwithstanding the municipalities of KZN has a revenue shortfall of R2.2 billion and also notwithstanding an upward adjustment operating expenditure, municipalities still underspend. The municipalities also underspend on capital expenditure to the amount of R2.1 billion , Debt management remains a problem. National Condition grants is not fully utilised.
All said it is clear that there is a serious lack of capacity our municipalities. Cader deployment has caused havoc.
It is clear that the bomb is about to explode and because of poor economic policies and ineffective municipalities which suffers from Cader deployment we are now at a precipice and must brace ourselves for the worst and all thanks to the outdated and poor financial / economic policies of the ANC.
The IFP implores the ANC to change their economic policies and move to a common sense free market system with the least possible government intervention.
I thank You
