Speech by David Maynier, Minister of Finance & Economic Opportunities, Western Cape Government, Western Cape Provincial Parliament, Cape Town
“A Budget for Hope”
Honourable Speaker and Deputy Speaker
Honourable Premier and Cabinet Colleagues
Honourable Leader of the Opposition Honourable Leaders of Opposition Parties
Executive Mayors and Deputy Mayors
Honourable Members of the Western Cape Legislature
Members of the Consular Corp Heads of Department Municipal Managers
Special Guests
People of the Western Cape
1. Introduction
Two weeks ago, Premier Alan Winde delivered his State of the Province Address, in a small town, some distance from here, called Genadendal. Which is a symbol of pain and strife, but also a symbol of freedom and courage. When Premier Alan Winde delivered his State of the Province Address, he called on us to stand together, and to lead from the front. He also called on us to get the job done, and to provide the hope we need in the Western Cape. Which is why, today, we table “A Budget for Hope” in the Provincial Parliament.
This budget:
- provides hope because it is a budget that supports job creation. This budget:
- provides hope because it is a budget that builds safer communities. And, this budget:
- provides hope because it is a budget that delivers well-being for communities.
However, in the end, this budget provides hope because it is a budget that supports the plan to defeat COVID-19, which is destroying lives, and is destroying livelihoods, in the Western Cape.
2. We have mobilised a R2.17 billion “war chest” to defeat the virus in the Western Cape
When we gathered here a little more than a year ago, for the tabling of the last main budget, not a single case of COVID-19 had been identified in the Western Cape.
But the very next day:
- the first positive case of COVID-19 was identified in our province; and
- a global COVID-19 pandemic was declared by the World Health Organization.
We had a plan, and we were prepared, but we could not have imagined what was to come, at the time. We have lost 11 363 people as result of the COVID-19 pandemic in the Western Cape.
Stop and think about it, for a moment: 11 363 people have lost their lives as a result of the COVID-19. Which means there are 11 363 families who have been left devastated by the COVID-19 pandemic in the Western Cape. We are locked in a struggle between a virus, and a vaccine, and the virus is winning - for now. So, we face a choice: defeat the virus or be defeated by the virus. And, to defeat the virus, we must, above all, vaccinate as many people, as fast as possible. Which is why we have mobilised a R2.17 billion “war chest” to defeat COVID-19 in the Western Cape. We have:
- allocated R325.6 million for the rollout of vaccinations, which will be spent on rolling out up to 5.1 million vaccinations in the Western Cape. We have:
- allocated R75 million for the procurement of vaccines, which may be spent on procuring up to 500 000 single-shot vaccines for the Western Cape. We have:
- allocated R20 million for communication on vaccines, which will be spent on communicating the benefits of being vaccinated in the Western Cape.
And we have:
- allocated R832 million to respond to a possible third wave, which will be spent on inter alia rapidly expanding testing, providing personal protective equipment, and on ensuring sufficient supply of oxygen and critical care capacity in the Western Cape.
However, there is significant, and unprecedented, uncertainty in the environment, which has major cost implications:
- we do not know when we will receive more vaccines from national government;
- we do not know how many vaccines we will receive from national government;
- we do not know whether we will receive single-shot or double-shot vaccines; and
- we do not know which vaccines will be approved by the regulator.
We also do not know the time, the location and the magnitude of a possible third wave in the Western Cape. So, to ensure that we remain sufficiently agile and flexible, we have ring-fenced a further R800 million in the provincial reserves to support the fight against COVID-19 in the Western Cape.
Which could be utilised for a range of needs:
- to rollout vaccines;
- to procure vaccines; and
- to respond to additional costs arising from the fight against COVID-19 in the Western Cape.
We have also allocated an additional R116 million, in this financial year, to fund the cost of the second wave and to jump-start the rollout of vaccinations. We have, in the end, matched a R1.08 billion contribution from national government, with a R1.09 billion contribution from provincial government, to mobilise a R2.17 billion “war chest” to defeat COVID-19 in the Western Cape. In the end, when it comes to the struggle between the virus, and the vaccine, the vaccine will win, because humankind has never been better prepared to defeat a pandemic threatening the future of the world.
3. We have mobilised R100 million to provide humanitarian relief in the Western Cape
We must also be prepared to step up and expand humanitarian relief to people who are struggling as national government runs out of “fiscal firepower” with:
- the UIF TERS relief scheme having been terminated on 15 March 2021; and
- the COVID-19 social relief grant being terminated on 30 April 2021.
So, to respond to the needs of people, who have lost jobs, who cannot make ends meet, and who are going hungry, we have also allocated:
- an additional R50 million for public employment programmes; and
- an additional R25 million for immediate food relief.
We have, in addition, ring-fenced a further R25 million in the provincial reserves for immediate food relief in the Western Cape.
