Address to the National Council of Provinces by the honourable Minister of Finance Pravin Gordhan on The role of the National Council of Provinces in cooperative government and intergovernmental relations: Unlocking the synergy for collective effort

Chairperson
Ministers and Deputy Ministers
Members of Parliament and Provincial Legislatures
Mayors and Councillors
Ladies and Gentlemen.

We are sixteen years into democracy, of which fourteen have been guided by one of the most respected constitutions in the world.

The constitution enjoins us to

Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;

Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;

Improve the quality of life of all citizens and free the potential of each person; and

Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations. “

It is also important to remind ourselves that our constitution and the intergovernmental system we have today is a product of political negotiations, and compromises during the negotiations.The Interim Constitution which embraces the outcome of our constitutional negotiations, list a set of constitutional principles which the 1996 Constitution must be based upon.Among the constitutional principles are the following:

XVI

Government shall be structured at national, provincial and local levels.

XVII

At each level of government there shall be democratic representation.

XVIII

The powers and functions of the national government and provincial governments and the boundaries of the provinces shall be defined in the Constitution.

XIX

The powers and functions at the national and provincial levels of government shall include exclusive and concurrent powers

XX

Each level of government shall have appropriate and adequate legislative and executive powers and functions that will enable each level to function effectively. The allocation of powers between different levels of government shall be made on a basis which is conducive to financial viability at each level of government and to effective public administration, and which recognises the need for and promotes national unity and legitimate provincial autonomy and acknowledges cultural diversity.

XXI

A set of criteria shall be applied in the allocation of powers to the national government and the provincial governments.

XXIV

A framework for local government powers, functions and structures shall be set out in the Constitution.

XXV

The national government and provincial governments shall have fiscal powers and functions which will be defined in the Constitution.Similarly, local government must be provided for."

We in the ANC have always been clear that we required a “unitary federalism” in South Africa if we were to overcome the legacy of apartheid.Today we aspire to be a developmental state which is uncompromisingly focussed on job creation, improving education and health, providing better security to our people and developing our rural areas.Clearly dynamic economic growth which both creates jobs and eradicates poverty is central to our mission.

We also want an active and activist state.We want a capable state – a state which has the strategic, leadership, operational and resources capabilities to ensure that our mission is accomplished.

The recent financial crisis has clearly demonstrated that:

The state remains the ultimate protector of people’s interests as markets overreach, on both the upswings and the downswings of capitalism. Self-regulation – à la 16th-century Scottish bankers – or a light-touch regulatory system cannot be the solution for the modern financial world. A co-ordinated, activist and sceptical regulatory system is needed...... A smarter, more active state is the way forward.”- (Ajay Chhibber, Financial Times 24-8-2010)

Our constitution recognises that centrifrugal focus operate within a quasi federal system.So we uniquely developed chapter 3 on co-operative governance which sets out the principles of co-operative government and intergovernmental relations.Among these are the following:

  • secure the well-being of the people of the Republic;
  • provide effective, transparent, accountable and coherent government for the Republic as a whole;
  • respect the constitutional status, institutions, powers and functions of government in the other spheres;
  • not assume any power or function except those conferred on them in terms of the Constitution;
  • co-operate with one another in mutual trust and good faith by-
  • fostering friendly relations;
  • assisting and supporting one another;
  • informing one another of, and consulting one another on, matters of common interest;
  • co-ordinating their actions and legislation with one another.

The National Council of Provinces (NCOP) is also a unique institution which was designed to “ensure that provincial interests are taken into account in the national sphere of government”.In addition, the participation of 10 part-time local government representatives in the NCOP was probably a world first!

The allocation of exclusive and concurrent powers to the different spheres of government determines the roles and responsibility of each sphere within this framework of co-operative government and intergovernmental relations.

Chairperson, this summit asks crucial questions:

After 16 years of democracy, can we say that our co-operative governance is optimal?Do we have the maximum synergy among the various structures of government?

Are we as organised and aligned as we need to be to deliver government services to our people and to be a leading force for development and change in our society?

We have done well in our first 16 years.But we could have done better.

We have made excellent gains in providing access to water, electricity and housing and access to health and education services are on par with the most developed nations, but the quality of our services is poor.

Let’s take a look at our development score. What is working and what is not? Our expenditure on education, for example, is on par with most developed nations, but the quality of our learners lags that of peer countries. In 2006, South African learners ranked last out of 40 countries for overall Grade 4 reading achievement and last out of 46 countries on Grade 8 mathematics achievement. Despite increased spending on health and other relevant social services, life expectancy in South Africa has consistently decreased since 1990. We are one of the only 12 countries whose maternal mortality has increased since 1990.

Health and education outcomes are impacted on by a range of factors outside these sectors including poor delivery of housing and basic services. The Constitution and the local government legislation require national and provincial government to support and build the capacity of municipalities, yet so many of our municipalities are in financial crisis mainly because the basics are not done properly.

This world, and indeed South Africans themselves, have become accustomed to the idea that we will pull off miracles repeatedly!The peaceful path to democracy, the 1994 elections, the uniting role of sport, and more recently the World Cup are but some examples.

There is another massive task we have been undertaking for the past decade and a half: that of building a developmental and capable state and transforming South Africa and offering a better life for all South Africans.In ten to twenty years time we will know whether we have pulled off another miracle!

For now, Chairperson, you ask a more focussed question: what role can the NCOP play in enhancing co-operative governance and intergovernmental relations?

I offer the following thoughts and challenges for your consideration:

1. We need to do more to inculcate the ethos of “unitary federalism” and co-operative governance in the minds and hearts of the public, politicians and civil servants.We must question whether the culture of politics and the operational culture of civil servants enhances our regional vision of a cohesive state and society.

2. In bridging the provincial and local government voice into national deliberations, is there a need to review the interaction and quality of disclosure between the National Assembly and NXCOP?So that both a diversity of views and different perspectives are embraced in national deliberations.

3. We need a more active engagement from provinces and local government on economic matters, in particular the dynamic role provinces and municipalities can play in providing economic infrastructure and opportunities to our entrepreneurs and our unemployed youth.

4. The NCOP could more critically look into whether we are building correctly, focussed and resilient institutions of the developmental state.

5. The concurrent areas of education, health and housing require urgent attention.There must be a more vigorous interrogation of organisational and delivery capability and the obstacles to genuinely ensuring that our children receive better education and our people receive better health care.

6. The poor utilisation and misuse of resources in our provinces and municipalities are reaching serious proportions.Honest citizens can no longer sit passively which a small clique of rent-seekers plunder the state.The NCOP must urgently play active role in this regard.

7. Concretely the area of procurement practises in provinces and municipalities require urgent attention. The recent arrest country wide is but the tip of the ice berg.

Above all, a developmental state is judged by which it delivers and the impact it has on the lives of our people.We can certainly do more both through the NCOP and other institutions to truly create more synergy and better alignment so that we can say we have made a “difference”.

Thank you.

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