Friday, 21^st June, 2024

The House met at 0900 hours

[MADAM FIRST DEPUTY SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

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Madam First Deputy Speaker: Order!

I have been advised that we have no quorum.

Acting Hon. Leader of the Opposition and Hon. Deputy Chief Whip, please, mobilise your people. I saw the Hon. Government Chief Whip walking out of the House to do so as well. I have not seen any efforts being made on the left.

Mr Chewe: We do not have leadership!

Business was suspended from 0903 hours until 0913 hours.

Madam Frist Deputy Speaker: We now have a quorum.

Hon. Members, this is just a reminder that we are painting a bad picture to the public. Members of the public expected the Sitting to have started at exactly 0900 hours, but we are coming into the Assembly Chamber slowly and one after the other. Only a few Members were punctual. Please, let us not waste taxpayers’ money, and follow the rules of this House. We start our Sitting at 0900 hours, sharp, on Fridays.

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ANNOUNCEMENT BY MADAM FIRST DEPUTY SPEAKER

ACTING LEADER OF GOVERNMENT BUSINESS IN THE HOUSE

Madam Frist Deputy Speaker: Hon. Members, I have received communication to the effect that in the absence of Her Honour the Vice-President, who is attending to other Government Business, the Minister of Finance and National Planning, Hon. Dr Situmbeko Musokotwane, MP, has been appointed the Acting Leader of Government Business in the House from today, 21^st June, 2024, until further notice.

Thank you.

Hon. UPND Members: Hear, hear! 

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BUSINESS STATEMENT

The Minister of Finance and National Planning, and Acting Leader of Government Business in the House (Dr Musokotwane): Madam Speaker, I wish to inform the House that the House Business Committee met on Thursday, 20^th June, 2024, to determine and schedule Business of the House for the period 25^th June, 2024, to 5^th July, 2024. Accordingly, the Committee resolved to lay before the House the following business for consideration for the next two weeks:

Announcements

The Hon. Speaker may make an announcement to the House on any day when it is necessary to do so.

 Rulings

The Hon. Speaker may render rulings, if there will be any.

Ministerial Statements

 Hon. Ministers may render ministerial statements, if there will be any.

 Bills

The Bills listed hereunder will be considered:

1. The Zambia Institute of Advanced Legal Education Reading (Amendment) Bill, No. 4, 2024, Second Reading;

1.  The Matrimonial Causes (Amendment) Bill, No. 5, 2024, Second Reading;

1. The Lands Tribunal (Amendment) Bill, No. 6, 2024, Second Reading;

1. The Zambia Qualification Authority Bill, No. 7, 2024, Second Reading; and

1. The Human Rights Commission Bill, No. 8, 2024, Second Reading

Madam Speaker, the dates for presentation of the Bills are yet to be determined.

 Reports on International Conferences

The reports on International Conferences will be rendered, if there will be any.

Supplementary Estimates

 The hon. Minister of Finance and National Planning is expected to move the Motion of Supply on the Supplementary Estimates No. 1, 2024, today, 21^st June, 2024.

 Parliamentary Committee Reports

The following Committee reports will be considered during the week:

1. Report of the Committee on Legal Affairs, Human Rights and Governance on the fight against Corruption in Zambia, on 25^th June, 2024;

1. Report of the Committee on Local Governance Housing and Chiefs Affairs on the Review of the Implementation of the Constituency Development Fund, on 26^th June, 2024;

1. Report of the Committee on Education, Science and Technology, on the Review of the Implementation of the 2013 Zambian Curriculum: Opportunities and Challenges, on 27^th June, 2024;

1. Report of the Committee on Transport, Works and Supply on Road Freight Transport in Zambia, on 28^th June, 2024; and

1. Report of the Parliamentary Delegation to the 148th Inter Parliamentary Union (IPU) Assembly and Related Meetings held in Geneva, Switzerland, from 23^rd March, 2024, to 27^th March, 2024, on 3^rd July, 2024.

Madam Speaker, more reports are expected to be availed in due course.

Questions for Oral Answer

The Ministers will respond to twelve Questions for Oral Answer, as set out hereunder during the same period. The details of the Questions which, I will not read here, are contained in the Notices of Questions circulated to all hon. Members and other stakeholders.

The questions on standby to replace questions that may not be placed on the Order Paper on the designated day for one reason or another are set out hereunder:

Question No.                         Sector

 

373                                       Technology

377                                       Infrastructure

339                                       Transport

337                                       Infrastructure

405                                        Health

299                                         Health

382                                        Education

346                                       Transport

313                                      Local Government

Madam Speaker, on behalf of the House Business Committee, and in accordance with Standing Order No. 189(5) of the National Assembly of Zambia Standing Orders, 2024, I have the pleasure to present the business for the next two weeks to this august House.

I thank you, Madam Speaker.

URGENT MATTERS WITHOUT NOTICE

MR SIMUMBA, HON. MEMBER FOR NAKONDE, ON DR MUSOKOTWANE, HON. MINISTER OF FINANCE AND NATIONAL PLANNING, ON THE ZAMBIA REVENUE AUTHORITY TRIBUNAL

Mr Simumba (Nakonde): Madam Speaker, thank you for giving me this opportunity to raise an urgent matter without notice. It is directed to the hon. Minister of Finance and National Planning.

Madam Speaker, the Zambia Revenue Authority (ZRA) is an institution under the watch of the Ministry of Finance and National Planning. The authority has been operating without the Tax Appeals Tribunal for one year and three months. A Tax Appeals Tribunal is a court that deals with appeals of tax disputes between the ZRA and taxpayers. Section No. 4 of the Tax Appeals Tribunal Act empowers the hon. Minister to appoint seven members who need to seat on that tribunal. The ZRA has taken advantage of not having that tribunal in operation, and it is making arbitrary decisions for our taxpayers. One of the decisions that the authority has made is the illegal garnishing taxpayers’ bank accounts. It is also illegally closing down some taxpayers’ shops, seizing goods and also–

Madam First Deputy Speaker: Hon. Member, wind up your matter.

 Mr Simumba: Madam Speaker, the question that begs an answer from the hon. Minister is: Why has the ministry taken so long to appoint members of the Tax Appeals Tribunal so that our taxpayers can be appealing to the tribunal concerning their issues?

 I seek your guidance on this matter, Madam Speaker.

Madam First Deputy Speaker: Hon. Member, that matter does not qualify to be raised under Urgent Matters Without Notice. That is a matter that has been happening – you said– over one year? When we are looking at urgent matters without notice, they have to be matters that have occurred within the last twenty-four hours. What you have explained qualifies to be filed in as a question. So, you can file in a question on that matter.

We make progress.

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MOTION

SUPPLEMENTARY ESTIMATES OF EXPENDITURE, NO. 1 OF 2024

The Minister of Finance and National Planning (Dr Musokotwane): Madam Speaker, I beg to move that the House do now resolve–

Interruptions

Madam First Deputy Speaker: Order!

Dr Musokotwane: Madam Speaker, I beg to move that the House do now resolve into Committee of Supply to consider Supplementary Estimates of Expenditure No. 1, 2024.

Eng. Milupi interjected.

Madam First Deputy Speaker: Hon. Minister of Finance and National Planning, you may continue.

Dr Musokotwane: Madam Speaker, I am a bearer of a message from His Excellency the President of the Republic of Zambia recommending favourable consideration of the Motion I now lay on the Table.

Dr Musokotwane resumed his seat.

Interruptions

Madam First Deputy Speaker: Hon. Members, I apologise for that brief breakdown in the proceedings. The hon. Minister of Finance and National Planning will proceed to present the Supplementary Estimates of Expenditure No. 1 of 2024.

Dr Musokotwane: Madam Speaker, in accordance with Article No. 203 of the Constitution, in which the amount appropriated in an Appropriation Act is insufficient to meet the expenditures in that financial year, the Minister responsible for finance is expected to lay before the National Assembly Supplementary Estimates of Expenditure for approval. By virtue of the authority conveyed in the Article of the Constitution, which I quoted above, I now present the Supplementary Estimates of Expenditure No. 1 of 2024. The total Supplementary Budget I present today stands at K41.9 billion. As I present this Budget, it is important to put matters into perspective in view of recent developments that have made it necessary to present the Supplementary Estimates.

Madam Speaker, all the hon. Members of this august House are aware that during the 2023/2024 Farming Season, we experienced a severe drought, arguably the worst in nearly sixty years of the country’s existence, affecting over 9.8 million people, which is almost 48 per cent of the population. The drought situation has brought about significant crop loss, which has threatened the nation’s food security, as it has left a destructive impact on agricultural production. Water availability and power generation have also been negatively impacted, while livestock diseases and many other areas of the economy have also been badly affected.

Madam Speaker, the agricultural sector is projected to decline by 19 per cent, while there is a projected reduction in productivity across all sectors of the economy due to electricity rationing. As a result, the real gross domestic product (GDP) growth has been revised downwards from the 4.7 per cent we expected this year to only 2.3 per cent.

Madam Speaker, other macroeconomic factors have also been negatively affected by the drought. For example, in the first quarter of 2024, inflation averaged 13.5 per cent compared with 12.9 per cent in the last quarter of 2023. By May 2024, the annual inflation rate rose to 14.7 per cent from 13.8 per cent in March 2024, mainly due to high food prices. In that regard, we also have to import food, among other basic needs, which will worsen the trade balance, thereby pushing the current account balance to a deficit of 0.2 per cent of the GDP, compared with a projected surplus of 3.7 per cent of the GDP for 2024.

 Madam Speaker, let me highlight the notable proposed expenditure allocations contained in the Supplementary Estimates of Expenditure No. 1, 2024. Out of the recommended K41.9 billion, K8.3 billion or 19.8 per cent of the revised Budget will be dedicated to facilitating the Government’s drought response interventions in an effort to provide lifesaving and early recovery assistance to the millions of Zambians affected by the disaster. Of that amount, K5.2 billion has been allocated to the Ministry of Community Development and Social Services for the Social Cash Transfer (SCT) programme. That allocation will facilitate a top-up of K200 for all the 1.3 million households already enrolled in the existing programme. The top-up will ensure that the recipients will now receive K400 per month.

Hon. UNPD Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the top-up is aimed at alleviating the impact of high food prices among our vulnerable population during the drought response period. Therefore, it is expected to run up to June 2025, in line with the drought response plan. Apart from the 1.3 million households that will now be receiving the K400 per month, an additional 1.2 million households that have been severely affected by the effects of the drought but are not on the existing SCT programme are also expected to be supported under the newly-developed Emergency Cash Transfer programme. They will receive assistance from the Government of K400 on a monthly basis up to June 2025. By extending the SCT programme, the total number of beneficiaries under the programme now comes to 2.5 million households from the original 1.3 million households. In addition to that, the Government recognises that the effects of the drought have impacted more than the 2.5 million households that it is able to assist through the cash transfer programmes. The households on the programme are those that are generally considered to be vulnerable due to old age, disability and other factors. However, the severe drought of 2024 has brought about hunger even to able-bodied people since they lost most of their crops. Those citizens are not on either of the cash transfer programmes that I have announced but, if given a chance to work, they could have their livelihoods improved. Therefore, to assist that category of the affected but viable population, the Government has proposed to implement a “Cash for Work” programme, for which an initial amount of K2 billion has been allocated. The amount is expected to be increased up to a maximum of K3.8 billion in 2024 alone after financing procedures and processes are finalised with some of our co-operating partners. At that point, I shall return to this House with a request to augment that allocation.

Madam Speaker, the public works that will be done under the “Cash for Work” programme will include road maintenance, side road vegetation control, drainage clearing in our cities so that the water from the rainfall in the next rainy season clearly flows away, canal clearing in wetlands, garbage collection and general public area cleaning and so on and so forth. The work will only be offered to citizens in drought affected areas who are not on any Government assistance programmes, such as the SCT. That will be done to avoid double-dipping and ensuring that the available resources go towards helping as many affected families as possible.

 Madam Speaker, I need to categorically affirm to this august House that the stance and resolve of this Government is to ensure that no Zambian dies because of hunger. In that regard, I wish to re-affirm the Government’s commitment to ensuring that there is food security in the country amidst the drought. The Government, through the Food Reserve Agency (FRA) will buy maize from the current harvest, which is from the early planting rotation that was done last year and the winter maize that will be planted. However, we are fully aware that the local farmers are not able to meet the country’s total demand for maize. I, therefore, wish to inform this august House that modalities are currently being finalised to facilitate the importation of maize by the private sector and the FRA. The locally produced maize plus the maize that will be imported shall be enough to meet the country’s requirements.

Madam Speaker, by putting cash in the pockets of those who are affected by the drought, whether through the SCT or through “Cash for Work” programmes, the recipients will be enabled to buy maize and other food stuffs of their choice. The Government is aware, however, that even if people get the cash, there may be challenges in buying grains like maize due to its short supply. To mitigate that risk, the FRA will be positioning maize every month in all the affected wards so that those who have acquired cash through the Government or other means may be able to buy the maize close to where they reside. The Government will be providing updates to this House on a regular basis.

 Madam Speaker, with regard to ensuring that nutritional levels and cognitive abilities are maintained during this drought-response period among our school-going children, this Government has decided to upscale the School Feeding programme from early childhood education (ECE) to secondary education in about thirty-seven affected districts. That programme will also ensure that our children continue attending classes and not miss school due to hunger and starvation during this period. In that regard, K392.2 million has been allocated over and above the approved budget of K111.7 million in the 2024 Budget. 

Madam Speaker, under the water supply and management subsector, the Government is resolute in building resilience against current and future climate change effects through the implementation of various early recovery interventions. In that regard, K306.6 million has been allocated under the sector. The proposed allocation will help the Government to maintain and rehabilitate dams in eighty-four affected districts, drill high production boreholes as well as provide the required water treatment chemicals for some water utility companies.

Madam Speaker, under the livestock and wildlife sector, the Government is proposing to spend an additional K460 million to undertake, among others, heightened livestock disease control. That is to ensure that sufficient surveillance and vaccines are provided to curb dry-spell livestock diseases. The allocation will also cater for the protection of grazing areas and rangelands for livestock and wildlife as well as facilitating the provision of supplementary feeding for the animals.

Madam Speaker, of the recommended K41.9 billion in this Supplementary Budget, K14.6 billion or 34.8 per cent has been dedicated to addressing external debt service obligations. The required expenditure for debt service follows debt restructuring agreements reached between the Government and its creditors who include the official creditors, bond holders and other private creditors, for which discussions were still on-going at the time of preparing the 2024 National Budget.

Madam Speaker, the milestones reached in our debt restructuring process are pivotal to the development of our country. In particular, resumption of external debt servicing, which was suspended in 2020 with our various creditors, will now remove the debt-default tag on our country and, hence, facilitate future inflow of both investment and private sector development. Zambians having a tag as defaulters ends now.

Madam Speaker, let me remind the House that following the debt restructuring agreements reached so far, the Government is expected to pay US$750 million in the base case scenario and about US$3 billion in the medium case scenario between 2023 and 2031on our bilateral debt. In both cases, the amount to be paid is significantly lower than the US$6.3 billion that would have been paid in the same period in the absence of the debt restructuring agreement.

Madam Speaker, for the Eurobonds, the Government is expected to pay about US$1.6 billion under the base case scenario and about US$1.8 billion in the medium case scenario between 2024 and 2031. The amounts payable in both cases are much lower than the US$3.8 billion that was payable by 2027 if the debt had not been restructured. In addition, accrued interest reaching up to US$800 million has been waived in the concluded deal.

Madam Speaker, K15.2 billion or 36.3 per cent of the Supplementary Budget will be dedicated to dismantling of fuel arrears, which were contracted during the Patriotic Front (PF) Administration.

Hon. PF Members: Question!

Dr Musokotwane: Madam Speaker, as we are all aware, fuel was heavily subsidised before 2022 and suppliers were not fully paid by the Government then. We are now left with the obligation of resolving that problem if we are to make meaningful traction in ridding our citizens of that liability burden. The proposed facility will enable the Government to replace the expensive late payment interests on fuel arrears of around 18 per cent per annum, some as much as 24 per cent per annum, which means that the liability doubles every four years or five years.

Madam Speaker, there are a few other items relating to debt that are contained in the Supplementary Estimates. Prominent among them is the US$30 million advance to Zesco Limited to enable the company to import electricity from Mozambique. I must say that when Zesco Limited tried to import electricity from Mozambique recently, the corporation was reminded of an electricity supply arrangement for which it collected the commodity, but has not paid for to-date, and since it wanted to buy some more, it was asked to pay for that one. So, that is the payment that was given in advance to Zesco Limited. Otherwise, it would not have been able to import electricity because of that unpaid bill left from the PF regime days.

Madam Speaker, let me now address the proposed source of the Supplementary Expenditure. I wish to indicate that K17.2 billion will be realised through the declaration of savings from existing budget allocations to various Government institutions and departments. The amount will be raised by cutting costs on activities such as workshops, local and international travel as well as other general Government operations. I request for everyone’s understanding on the issue of the cuts, especially in the public sector. We have received tremendous support from co-operating partners. However, it is imperative that the Zambian Government and its people take the lead in making sacrifices in order to feed our compatriots so that the support from donors merely complements our efforts. Just to repeat the point that the budget will be cut in areas of travel, workshops and other things not considered essential so that we save money to feed our people.

Madam Speaker, apart from our input, a further K4.3 billion will come as additional support from co-operating partners in 2024 aimed at addressing the drought situation. In that regard, I wish to affirm my Government’s sincere gratitude to all our co-operating partners, such as the World Bank, the European Union (EU) and other bilateral partners, for the prompt and decisive response to President Hichilema’s clarion call for assistance during this time of distress. That, indeed, confirms the true partnership and friendship that exists between us. A friend in need is surely a friend indeed!

Madam Speaker, I wish to further indicate that K3.8 billion of this Budget is from additional revenue that has been realised in the year, and was not part of the 2024 Revenue Estimates. It includes dividends posted by the Bank of Zambia (BoZ), which were earlier projected, as well as some money forfeited to the State from individuals and institutions who are believed to have irregularly acquired it. We are now putting that money to use for members of the public who are the true owners.

Hon. UPND Members: Hear, hear!

Dr Musokotwane: Madam Speaker, finally, a balance of K16.6 billion is proposed to be facilitated through additional concessional financing using both domestic and external sources. Let me categorically mention that out of the total allocated to supplementary estimates, US$194.5 million is part of the funds expected to come from the International Monetary Fund (IMF), as additional financing specifically aimed at supporting the country’s response to the drought situation. In view of that and other changes to the 2024 financing requirements, I have also brought the revised Annual Borrowing Plan for 2024 in accordance with the Public Debt Management Act. 

Madam Speaker, in conclusion, the important factors that have made it necessary to present the Supplementary Budget No. 1, 2024 are, firstly, the devastating drought that has left many of our citizens hungry. The Supplementary Budget has provided resources to put cash in their pockets through the SCT and “Cash for Work” programmes. That will assist them in buying food. That is what any responsible Government should do. Secondly, there are a number of problems all related to debt that were left behind by the PF Government. They need to be cleaned up at this stage.

Mr Kampyongo: Hear, hear!

Interruptions

Dr Musokotwane: Madam Speaker, as you may recall, this country was left with unsustainable debt by the PF Government. The debt has, by and large, been restructured, which makes it possible for Zambia to resume –

Interruptions

Madam First Deputy Speaker: Order!

Dr Musokotwane: Madam Speaker, the debt has, by and large, been restructured, which makes it possible for Zambia to resume debt servicing while still leaving enough money to finance social programmes even better than before. The shame of being a defaulter has been removed from this country. Related to that, there is other debt that had not been paid by the previous Government, that is the amounts owed to the fuel suppliers, as I indicated earlier on, and for electricity imports from Mozambique. The Supplementary Budget I have presented addresses those issues. The problem of unpaid bills under the previous Government are being resolved step by step.

Hon. UPND Members: Hear, hear!

Dr Musokotwane: That is what the Government promised to do, and it is now delivering.

Madam Speaker, I wish to thank our citizens for the support they continue to render during these difficult times. I also thank the co-operating partners led by the World Bank and the IMF who have extended extraordinary support to Zambia in mitigating the calamity of the 2024 drought.

 Madam Speaker, lots of gratitude to the President, the Cabinet and this House for the good leadership. The extraordinary support Zambia is receiving from co-operating partners is not an accident. It reflects the trust that the Government has brought for our country. We must continue to maintain good governance. Hon. Colleagues will remember that in the past, when money meant for the SCT programme was stolen by politically aligned persons, the co-operating partners quickly withdrew their support.

Interruptions

Dr Musokotwane: Under this Government, Madam Speaker, public money will be managed honestly for the benefit of the public.

Madam Speaker, I thank you.

Hon. UPND Members: Hear, hear!

Madam First Deputy Speaker: The Estimates stand referred to the Expanded Planning and Budgeting Committee for consideration. The Committee is required to submit its report on the Estimates to the House by Friday, 5^th July, 2024.

 We make progress.

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MINISTERIAL STATEMENT

MEASURES TO MITIGATE ESCALATING COMMODITY PRICES

The Minister of Small and Medium Enterprise Development (Mr Mubanga) (on behalf of the Minister of Commerce, Trade and Industry (Mr Chipoka Mulenga)): Madam Speaker –

Interruptions

Madam First Deputy Speaker: Order!

Hon. Members, let us give the hon. Minister room to present the ministerial statement.

Mr Mubanga: Madam Speaker, I want to firstly express my gratitude for this opportunity to given to me to share information on matters that are pertinent to our nation, particularly at a time when our country as well as our neighbouring countries are grappling with food security matters. 

Madam Speaker, Hon. Mumba, the Member of Parliament for Kantanshi, raised concerns regarding the rise in prices of goods, especially food prices in view of the reduced crop production. The Government is fully aware of the situation at hand to the extent that His Excellency, Mr Hakainde Hichilema, the President of the Republic of Zambia, declared the drought that the country is experiencing a national disaster and emergency. The drought has significant implications for national food security, impacting crop yields and water availability for human consumption, agricultural activities and energy production. The prolonged dry spells have strained our farmers who are grappling with reduced harvests.

Madam Speaker, in the recent past, prices of essential commodities have increased in the country, as evident from the inflation rate, and that has contributed to the high cost of production and doing business as well as the high cost of living. It is also worth noting that the consequence of reduced production amidst heightened demand is high prices. The Government is aware of the reduced crop production, and has put in place measures to cushion the effects of high prices on the well-being of our people. Maize production has been severely impacted by the drought. Nevertheless, the Government has put in place measures to ensure stable supply and access to the commodity across the country, especially in drought-hit areas where not much rainfall was recorded.

Madam Speaker, the measures put in place are as follows; firstly, the Government has removed duty on the importation of maize through Statutory Instrument (SI) No. 30, 2024. That simply means that the private sector will be able to import as much grain as possible without paying Import Duty. The incentive will also enable feed manufacturers to have access to maize, and manufacture enough feed for livestock and fish. That will ensure that prices of poultry products and fish remain relatively stable.

Secondly, Madam Speaker, the Government, through the Food Reserve Agency (FRA) and the Disaster Management and Mitigation Unit (DMMU), will import 660,000 metric tonnes of maize to help with the national consumption demand. The DMMU will distribute the maize to centres where communities will easily buy and process it into mealie meal. Additionally, the Government is also encouraging farmers across the country to embark on planting early maize and winter maize through various forms of irrigation. That will help with the continuous supply of grain throughout the drought period.

Madam Speaker, thirdly, the Government will expand the Social Cash Transfer (SCT) programme vertically and horizontally. Vertical expansion simply means that the transfer value for the programme will be increased to a K400 allocation per month from the current K200. Horizontal expansion means that the Government will cover an additional 1.2 million households on an emergency cash transfer programme for the drought response. In addition, the Government will also upscale the School Feeding Programme to include an additional thirty-seven districts affected by the drought as well as increase spending on water resources development and management.

As regards inflation, Madam Speaker, the Bank of Zambia (BoZ) and the Ministry of Finance and National Planning are handling and working together on that.

Madam Speaker, the Government has also attracted investment in the production of Compound D and urea fertiliser, which when fully operational will reduce the cost of inputs in the production of maize and soya beans. Further, the Government, through the Zambia National Services (ZNS), is producing mealie meal to give consumers an opportunity to obtain the commodity at a cheaper price. The Government is also working with private sector milling companies to produce mealie meal at a lower cost, which in turn will help reduce the cost of mealie meal on the local market.

Madam Speaker, with regards to fuel, Zambia wholly imports all her petroleum products. However, the Government is working out measures to facilitate the reduction of fuel prices. Recently, it converted the Tanzania Zambia Mafuta (TAZAMA) pipeline from transporting crude oil to transporting finished low sulphur gas oil (LSG); diesel. The Government is also working with private sector players to expand the storage capacity for fuel to 400,000 litres. Plans have also reached an advanced stage to set up a storage plant with more than 240,000 litres capacity for liquefied petroleum gas (LPG) in Chibombo District. That will be the first ever plant for LPG. It will be operational by August 2024. The LPG plant will be replicated in other parts of the country.

Madam Speaker, as I conclude, the Government, through the ministry, is also conscious and alert to the introduction of any legislation that is seen to increase the cost of doing business. As such, the Business Regulatory Review Agency (BRRA) is actively engaged to ensure that a regulatory impact assessment is undertaken before introducing any legislative charges.

Madam Speaker, the Government remains committed to ensuring food security, reduced cost of fuel pump prices and prices of essential commodities. Further, it will continue to monitor the prices of essential commodities and take appropriate action, where necessary.

Madam Speaker, I thank you.

Madam First Deputy Speaker: Hon. Members, you are now free to ask questions on points of clarification on the ministerial statement  by the Acting hon. Minister of Commerce, Trade and Industry.

Hon. Member for Nakonde, you may proceed.

Mr Simumba (Nakonde): Madam Speaker, thank you very much.

Madam Speaker, there is a saying that when the Government fails to change the lives of the people, the people should change that Government.

Hon. PF Members: Hear, hear!

Mr Simumba: I am sure –

Madam First Deputy Speaker: Hon. Member for Nakonde, we are making clarifications on the ministerial statement that was issued by the hon. Minister.

Hon. PF Member: It is the same one!

Mr Simumba: Yes, my point is on the statement.

Madam First Deputy Speaker: I did not hear the hon. Minister talk about that.

Mr Simumba: It is the same.

Madam First Deputy Speaker: Please, go straight to your question.

Mr Simumba: Madam Speaker, the United Party for National Development (UPND) Administration promised the people that it was going to change and reduce the high cost of living. The hon. Minister has confirmed that essential commodities are highly priced. The question is: When is Zambia going to enjoy the life that the people used to enjoy, which had low prices of essential commodities?

Mr Mtolo interjected.

Mr Mubanga: Madam Speaker, when we took office in 2021, the country was already facing serious economic issues.

Interruptions!

Madam First Deputy Speaker: Order!

Mr Mubanga: At one point –

Madam First Deputy Speaker: Order, hon. Minister!

Hon. Members, the voices are becoming louder, if you want to have a caucus, please, just step outside of the House so that the hon. Minister can continue with the responses and the people who are tuned in may be given a chance to listen.

Hon. Minister, you may continue.

Mr Mubanga: Madam Speaker, as I was saying, before we took office in 2021, the country had serious economic issues. At one point, there was even a default in paying back the country’s debt. Those are the issues we started working on, and we managed to restructure the debt. We are on our way to a recovery.

I thank you, Madam Speaker.

Hon. UPND Members: Hear, hear!

Mr Tayengwa (Kabwata): Thank you, Madam Speaker.

Madam Speaker, I think, people who are affected by the hunger situation that we are going through, as a nation, are the weak in society; the most vulnerable people. In most parts of the country, we have a situation in which mealie meal that is delivered by the Zambia National Service (ZNS) is supposed to be sold at K230, yet there are people who have taken advantage of that price and are abusing the system. They are buying the mealie meal in bulk and exploiting the weak in our country by selling the mealie meal between K320 and K370. What measures has the ministry put in place to protect the interests of the weakest person in our country?

Mr Mubanga: Madam Speaker, the Government is looking into that issue. There are agencies we are working with to ensure that anyone who will be found selling mealie meal they bought at a cheaper price from the ZNS to our people at a higher price is dealt with.

I thank you, Madam Speaker.

Mr Kapyanga (Mpika): Thank you, Madam Speaker.

Madam Speaker, your directive to the hon. Minister of Commerce, Trade and Industry was to render a ministerial statement on the measures being taken to ensure that the prices of essential commodities in our country remain stable. In his submission, he started talking about the drought situation and other things. The reason we have high prices of essential commodities is that, firstly, this Government has increased electricity tariffs, tripled the price of fuel, …

Interruptions

Mr Kapyanga: … and it exported maize–

Madam First Deputy Speaker: Order, hon. Member for Mpika!

You are not supposed to bring in another topic, and start debating it. You are supposed to be seeking clarifications on the ministerial statement that was issued by the hon. Minister. Do you have a question on the ministerial statement that was issued?

Mr Kapyanga: Madam Speaker, I have a question on the same misleading ministerial statement.

Laughter

Madam First Deputy Speaker: Hon. Member for Mpika, please, let us not change the rules of the House. The public was listening to the ministerial statement. Now, you have added the word ‘misleading’. How will the people feel? The instructions were clear; to ask questions on points of clarification on the ministerial statement. We are not judging the ministerial statement. Do you have a question or not so that we give a chance to other hon. Members?

 

Mr Kapyanga: Madam Speaker, I have a question.

Madam First Deputy Speaker: Can you also withdraw the word, ‘misleading’ for the sake of the people who are listening to the proceedings.

Mr Kapyanga: Madam Speaker, for the sake of the people who are listening to the proceedings, I withdraw the phrase, ‘misleading ministerial statement’, but I remain misled, as a Member of Parliament.

Laughter

Madam First Deputy Speaker: No, hon. Member. I think, you can resume your seat. You are not following my instructions. I asked you to withdraw the word ‘misleading’ because the ministerial statement has already been issued I do not think –

Mr Kapyanga: Madam Speaker, I withdraw the phrase that is not leading to facts, and proceed to ask my question.

Laughter

Mr Kapyanga: Madam Speaker, my question to the hon. Minister is: What measures have been put in place to avert the escalating prices of essential commodities taking into account factors such as high electricity tariffs and price of fuel?

Mr Mtolo interjected.

Mr Mubanga: Madam Speaker, production is extremely important, especially concerning our food security. The Government’s policy was about telling the people to go back to the land.

Mr Simumba: Aha!

Mr Mubanga: The farmers were encouraged, and they cultivated. However, because of the drought, they were affected.

Mr Kampyongo: Hear, hear!

Mr Mubanga: Madam Speaker, because of the effects of the drought, the Government has put up measures. Earlier, I said that we would import 660,000 metric tonnes of maize to cushion what is happening. We are also encouraging our people to continue farming during winter and the dry seasons. The Government is giving irrigation schemes to support farming. My primary ministry; the Ministry of Small and Medium Enterprise Development, will be giving solar components and irrigation systems to our farmers so that we can all fight what we are going through. People must understand that when a country is going through a situation like a drought, we need to work as a team. This is not the time for politicking. It is a time that, as hon. Members, we work as a team to encourage our people to go back to the land so that we can fight what we are going through.

I thank you, Madam Speaker.

Mr Mtolo interjected.

Madam First Deputy Speaker: Is that an indication for a point of order?

Mr Mtolo: Yes.

On a point of order, Madam Speaker.

Madam First Deputy Speaker: A point of order is raised by the hon. Minister of Agriculture.

Mr Mtolo: Madam Speaker, my point of order is premised, …

Mr B. Mpundu: Abene ba nsala!

Interruptions

Madam First Deputy Speaker: Order!

Mr Mtolo: …on the fact that when we stand on the Floor of this House, we need to give factual statements. The point of order is raised against the hon. Member for Mpika and, as much as it is not contemporaneous, also Hon. Luka Simumba.

Mr Simumba: Aha!

Mr Mtolo: Madam Speaker, we have just been told by the hon. Minister of Finance and National Planning that as at August 2021, …

Hon. PF Members: Yes!

Mr Mtolo: … the Patriotic Front (PF) Government left a debt, …

Hon. PF Members: Yes!

Mr Mtolo: … of US$526 million on fuel supply arrears.

Hon. PF Members: What about maize?

Mr Simumba: Talk about the maize as well!

Interruptions

Mr Mtolo: Madam Speaker –

Madam First Deputy Speaker: Order!

Hon. Member for Mpika and hon. Member for Nakonde, can you, please, leave the House. When you are organised, you can come back. You are distracting the business of the House.

Madam First Deputy Speaker: You may continue hon. Minister.

Mr Mtolo: Thank you, Madam Speaker. They will listen to the point of order from outside the House. Parliament is digitally advanced.

Listen when you go out, it is meant for you.

Hon. Kapyanga and Hon. Simumba left the Assembly Chamber.

Laughter

Mr Mtolo: Madam Speaker, the people of Zambia need to be told the facts.

Interruptions

Mr Mukosa interjected.

Mr Mtolo: Madam Speaker, when the PF Government was leaving office, it left debt on fuel supplied previously, which people thought was cheap when in fact, there were hidden costs. As a consequence, we, as the United Party for National Development (UPND) Government, took over US$526 million of debt. A debt that we have been paying interest on at the rate of almost 24 per cent.

Interruptions

Madam First Deputy Speaker: Order!

Mr Mukosa: On a point of order, Madam Speaker.

Mr Mtolo: You sit down and listen. Why do you want to hide?

Interruptions

Mr Mtolo: Madam Speaker, we took over US$526 million of debt for fuel supplied.

Interruptions

Madam First Deputy Speaker: Order!

Mr Mtolo: The Zambian people did not know that that was debt we were accruing.

Hon. B. Mpundu and Hon. Mukosa interjected.

Madam First Deputy Speaker: Order!

Hon. Members on my left; Hon. B. Mpundu and the hon. Member for Chinsali, nobody gave you the Floor, yet you were shouting.

Mr Mulunda: They are dull!

Madam First Deputy Speaker: One of the roles of the Hon. Speaker is to admit points of order, which I have done. How do you come in with your own matters while the hon. Minister is still on the Floor raising his point order?

 Please, let us observe the rules of the House. This is not a playground where we can just –

Mr B. Mpundu continued talking.

Madam First Deputy Speaker: Hon. B. Mpundu, please, leave the House.

Mr B. Mpundu: Madam Speaker, why is he calling me childish?

Interruptions

Hon. Kangombe walked towards the Opposition Bench whilst pointing at Hon. B. Mpundu.

Mr B. Mpundu walked to the middle isle.

Mr B. Mpundu: Why are you calling me childish?

Madam First Deputy Speaker: No, Hon. B. Mpundu.

Interruptions

Madam First Deputy Speaker: Order!

Hon. Member for Sesheke and hon. Member for Nkana, please, leave the House. Go and finish your business outside.

Mr Nkulukusa: Kangombe, go and beat him up!

Mr B. Mpundu left the Assembly Chamber.

Mr Kangombe was escorted back to his seat by other hon. Members.

Madam First Deputy Speaker: Hon. Member for Sesheke, you might as well leave the House.

Mr Kangombe left the Assembly Chamber.

Interruptions

Madam First Deputy Speaker: Order!

We have to make progress.

Can we, please, observe the rules of the House. We started the proceedings late, and now we are bringing unnecessary issues into House, thereby delaying the whole programme. Can the Hon. Party Whips, Hon. Leader of the Opposition, and Hon. Government Chief Whip help us to ensure order in the House. Please, let us avoid debating whilst seated.

Hon. Minister of Agriculture, can you be precise in your point of order. Let it not be a debate.

Mr Mtolo: Madam Speaker, my point of order is: Are the hon. Members on your left, those who seem not to have the facts with them, in order to not tell the Zambians that the UPND Government took over a debt of US$526 million on fuel supplied, and that as at March 2024, we have a debt of US$877.18 billion on fuel? Are they in order to not inform the public the fact that we are seriously grappling with the repayment of debt because of previously mismanaged issues? Are they in order to question the statement by the Acting hon. Minister of Commerce, Trade and Industry who said that we are grappling with paying back debt on electricity and fuel supplied? Instead of absorbing the fact that the current Government is working hard, they come up with issues that are quite novel and not necessary in this debate.

Interruptions

Madam Frist Deputy Speaker: Order!

Hon. Members, I think, this issue arose because people debate whilst seated. Can we avoid debating while seated. Even the point of order was too general. The hon. Minister has actually debated his point of order. There is nothing for me to rule on because he even made recommendations in his submission.

That point of order, hon. Minister, is not admissible.

Hon. Opposition Members: Hear, hear!

Madam First Deputy Speaker: Let us make progress.

Hon. Member for Bwana Mkubwa, you may proceed.

Mr Mwambazi (Bwana Mkubwa): Thank you, Madam Speaker.

Madam Speaker, knowledge is power. I think, and believe that when we come to Parliament, we give alternatives to the Government on what it is lacking and how we can move forward, together, make progress for this country. However, we seem to merely politick at times.

Madam Speaker, the Government has converted the Tanzania Zambia Mafuta (TAZAMA) pipeline in order to transport finished petroleum products from Tanzania to the TAZAMA facility in Ndola. That was done in order to mitigate and reduce the price of petroleum products, such as diesel. The hon. Minister has also given some guidelines on how to access the pipeline, which seems to favour certain oil marketing companies (OMCs). How is the Government ensuring the full participation of the private sector in the usage of the pipeline, as it works towards mitigating or reducing the price of fuel?

Mr Mubanga: Madam Speaker, the Ministry of Energy is handling that issue. It is working on modalities around that issue to ensure that everyone is catered for.

 I thank you, Madam Speaker.

Mr Mung’andu (Chama South): Thank you, Madam Speaker.

Madam Speaker, let me take this opportunity to thank the hon. Minister of Finance and National Planning for presenting the Supplementary Budget. We are grateful that this Government will attend to the needs of our people, particularly those of us who have people who have been affected by the drought; a situation that has resulted in the serious hunger situation. We are looking forward to that.

Madam Speaker, my question is a rider on the question asked by the hon. Member for Bwana Mkubwa. For us to have energy security, we need to put in place a system that ensures that we are able to keep the petroleum products for usage for almost a year. That is the reason we have oil storage facilities dotted around the country, and there are still on-going projects to ensure that all provincial centres have those facilities, as indicated by the hon. Minister. That should be done so that in an event that transporters in Dar es Salaam or, indeed, the oil producers in the Middle East– considering the escalating levels of violence that take place in that region– are unable to ship oil to Dar es Salaam, we should survive, as a country, for, at least, a year. That brings about predictability in terms of oil prices. Is your Government planning to ensure that we have sufficient stock?

Madam Speaker, I know that Indeni Petroleum Refinery is not viable, but is the ministry planning to put up an investment either through a public-private partnership (PPP) or the public sector to ensure that we start processing oil products locally, as opposed to bringing in already finished products, so that in case of an eventuality, the economy of this country is not affected?

Mr Mubanga: Madam Speaker, we are actually encouraging the private sector to come on board. This Government is working with the private sector so that the sector can invest in that space. At the moment, we are expanding the storage facilities, as I mentioned in the statement. By the end of the year, we will have a plant in Chibombo. Private investors are also invited to participate in the development.

I thank you, Madam Speaker.

Ms Halwiindi (Kabwe Central): Madam Speaker, I would like to thank you for giving me this opportunity ask a question on behalf of the people of Kabwe Central.

Madam Speaker, before I say anything else, allow me to congratulate His Excellency the President of the Republic of Zambia, Dr Hakainde Hichilema, on the recognition of his service in the economic advancement of Zambia and its citizens; enabling the citizens have access to education and the revitalisation of international trade.

Hon. UPND Members: Hear, hear!

Ms Halwiindi: Madam Speaker, when we talk about the rising cost of living standards and assess what is happening around the world, we also note that it is a global issue. I would like to congratulate the New Dawn Government because we have heard about the programme it has for social protection; the increment in the Social Cash Transfer (SCT) allowance and the food supplements it is distributing to the whole country. The Government is doing a commendable job.

Madam Speaker, despite the Government zero-rating certain items, for instance, solar energy components, some private sector players and individuals are still increasing the prices of those products. Sometimes, prices are increased three times in a day, hence, even causing the high cost of living in the country. How is the Government engaging the private sector to ensure that the sector does not take advantage of the situation?

Mr Mubanga: Madam Speaker, the Government is encouraging local businesses to use solar energy facilities. One of the ways it has done so is by removing taxes on solar energy components. It is also engaging the private sector in the solar energy space to ensure that it does not disadvantage our businesses by hiking the prices. The agencies that the Government is working with have been told that whoever will be found hiking prices will be penalised.

I thank you, Madam Speaker.

Mr Chisopa (Mkushi South): Thank you, Madam Speaker.

Madam Speaker, between January and April, people were buying mealie meal for as much as K600 to K700 in Mbosha, which is in my constituency in Luano, Chingombe and Mboroma. Even now the price is still the same, and the Zambia National Service (ZNS) is not able to supply to those areas. Currently, a bag of maize is going at K330, and the Government intends to import more maize from Russia or South Africa, I do not know. How does the Government intend to reduce the price of mealie meal to K50 if we are buying a bag of maize at K330?

Mr Mubanga: Madam Speaker, there is what we call demand and supply. The commodity is not enough because of the drought, that is why we are going to import. I also have said that we are encouraging our families in this country to continue farming by using irrigation methods so that we can have food in our homes. Years back, each family was encouraged to have one lima, and this Government is encouraging families, including hon. Members of Parliament, to do the same. We should be the ones to lead so that members in our constituencies follow suit. I am encouraging every Zambian to acquire some irrigation system and get to the land. The issue of the pricing coming down will happen when each one of us gets into maize growing. I would like to repeat this point in another way. The Government is not there to bring in the maize we are talking about, especially to the hon. Members of Parliament. I would like them to be the examples. As we are here, in this House, we must lead and be the examples.

I thank you, Madam Speaker.

Mr Hamwaata (Pemba): Thank you, Madam Speaker.

Madam Speaker, the hon. Minister has informed this august House that a liquefied petroleum gas (LPG) plant will be constructed in Chibombo. By what percentage should we expect the cost of fuel to reduce, as a result of that initiative?

Mr Sing’ombe: On a point of order, Madam Speaker.

Madam First Deputy Speaker: A point of order is raised by the hon. Member for Dundumwezi.

Hon. Chisopa left the Assembly Chamber.

Mr Sing’ombe: Madam Speaker, I am grateful for this opportunity to raise a point of order. I should have raised it immediately the hon. Member who has just walked out of the House talked about mealie meal.

Madam Speaker, is the hon. Minister in order to not have reminded my hon. Colleagues, including the hon. Member for Nakonde who talked about the high cost of living, which he attributed to the increase in mealie meal prices, that in 2019, when this country had a partial drought, the Patriotic Front (PF) Government was feeding the people of Zambia maize bran, instead of mealie meal?

Hon. UPND Members: Hear, hear!

Hon. PF Members: Question!

Madam First Deputy Speaker: Order!

Hon. Member for Dundumwezi, your point of order is not admissible in the sense that we do not advise the hon. Ministers about what to respond to or how to respond to the questions.

Laughter

Madam First Deputy Speaker: Hon. Minister, you can respond to the question that was raised by the hon. Member for Pemba.

Mr Mubanga: Madam Speaker, the hon. Member for Pemba asked what the percentage will be in terms of the fuel price reduction when we increase the capacity of LPG storage facilities.

Madam Speaker, my statement did not mention any, …

Hon. Simumba interjected.

Mr Mubanga: … percentage in reduction. I was just talking about the capacity for storage of LPG in our country.

I thank you, Madam Speaker.

Madam First Deputy Speaker: Was that the hon. Member for Nakonde who assisted the hon. Minister in responding?

Hon. Member for Nakonde, I think, you can leave us for good for today. Leave the House.

Mr Simumba left the Assembly Chamber.  

Mr Hamwaata interjected.

Madam First Deputy Speaker: Hon. Member for Pemba, you are just given one opportunity, per person, to ask a question in a segment.

Mr Hamwaata: Madam Speaker, the hon. Minister has not answered the question I asked.

Madam First Deputy Speaker: Hon. Member, find another avenue to raise that matter. You cannot ask –

Mr Hamwaata: Madam Speaker, the hon. Minister did not get the question. 

Madam First Deputy Speaker: I get you, but find another way of bringing it up to me.

Hon. Member for Pambashe, you may proceed.

Mr Chitotela (Pambashe): Madam Speaker, Governance is a continuous process and, in life, there comes a time when you need to, …

Mr Mung’andu crossed the Floor.

Madam First Deputy Speaker: Order! Order!

Hon. Member for Chama South, use the other way. You are passing in between the hon. Member debating and the Hon. Speaker.

Mr Chitotela: Madam Speaker, there comes a time when we need to be factual as we progress, as a nation. The issue of debt is an economic matter. We should leave it to the hon. Minister of Finance and National Planning. In 2021, the debt on petroleum products was –

Madam First Deputy Speaker: Order, hon. Member!

 Are you asking a question? I cannot get what you are saying.

Mr Chitotela: Madam Speaker, I am asking a question, which I am paraphrasing.

Madam Speaker, the debt on petroleum products was at US$500 million and, currently, it is almost at US$900 million. Governance is a continuous process. Domestic debt was at K90 billion, and it is currently over K200 billion. Governance is a continuous process because every Government borrows to feed its citizens. So, the debt increases. My greatest concern is the living standards of the Zambian people.

Madam Speaker, one of the causes of the increase in the prices of commodities is the cost of petroleum products and energy. The Government seems to have an appetite for engaging one company called Agro-Fuel Investments Limited, which seems to dominate the monopoly of supply of petroleum products in Zambia. The company is not serving the interests of the citizens of Zambia. Is the Government intending, for once, to serve the Zambian people, and do away with that company which belongs to Shashi Patel? What is in that company?

Mr Kafwaya interjected.

Madam First Deputy Speaker: Hon. Member for Lunte, please, let us try to avoid distracting or disturbing the person on the Floor. These are questions that need to be responded to.

Mr Kafwaya: Madam Speaker, it is a point of order.

Madam First Deputy Speaker: On whom is the point of order?

Mr Kafwaya: Madam Speaker, from the beginning, I say that the devil is a liar. Hon. Chitotela cannot join those who are lying.

Laughter

Madam First Deputy Speaker: Order, hon. Member!

Please, resume your seat. Let us not bring talk about the devil into this House.

Hon. Minister, you may respond to the question posed by Hon. Chitotela.

Mr Mubanga: Madam Speaker, this Government is very inclusive. We are extending open hands to anyone who wants to enter into the petroleum sector, and they will be given opportunities to supply fuel.

I thank you, Madam Speaker.

Mr Kampyongo (Shiwang’andu): Thank you so much, Madam Speaker.

Madam Speaker, I agree that we have to work with the hon. Minister, but in working with him, he should also learn to listen to us when we give advice. The ministry is responsible for facilitating trade. I remember standing here, on the Floor, advising the substantive hon. Minister not to facilitate the trade of maize, which was in large stocks then. Today, the Acting hon. Minister has told us that the Government is going to import more than 600,000 metric tonnes of maize. The substantive hon. Minister and his hon. Colleague there[u1]  even made Her Honour the Vice-President coin what she called “Nalumangonomics”; increasing the prices in order to reduce, which the Zambian people are yet to see.

Laughter

Madam First Deputy Speaker: Order!

Business was suspended from 1040 hours until 1100 hours.

[MR SECOND DEPUTY SPEAKER in the Chair]

Mr Kampyongo: Mr Speaker, before business was suspended, I was in the process of posing a question.

Mr Speaker, the people of Zambia have heard many assurances through this august House by the hon. Minister of Agriculture and the hon. Minister of Commerce, Trade and Industry. The assurances culminated into the Hon. Leader of Government Business in the House equally giving further assurances. We were initially told that we were food secure and, therefore, there was no need for us, as Members of Parliament; the representatives of the people, to be worried when we questioned the Government’s plans to export more than 1 million metric tonnes of maize. All those matters are on record, and the Hon. Leader of Government Business in the House even came up with what she themed as “Nalumangonomics” –

Mr Second Deputy Speaker: Ask your question, hon. Member.

Mr Kampyongo: Mr Speaker, I want to make it clear so that the hon. Minister can give a clear response. The idea around “Nalumangonomics” is prices being increased in order to reduce them, which the people of Zambia have been waiting for.

Mr Speaker, now that the Government has said that it is going to import 650,000 metric tonnes of maize, in the hon. Minister’s heart of hearts, would he say that there is logic in that action? Should the people of Zambia still trust the Government? They were assured that the country was food secure, and that there was no need for them to be worried. For the Government to, firstly, export maize, and now to want to import it in the same manner it increases prices in order to reduce them is illogical. So, whether the intention was to export in order to import, was it logical for the Government to export those large quantities of maize? Now, the hon. Minister of Finance and National Planning is being stressed in trying to find foreign exchange (Forex) through the Supplementary Budget in order to import the same consignment of maize that was exported, all facilitated by the Government itself.

Mr Second Deputy Speaker: Order, hon. Member!

Hon. Minister, you may respond. I think, the hon. Member has asked enough questions.

Laughter

Mr Mubanga: Mr Speaker, when a country is going through a drought–

 Mr Speaker, I am pausing so that the people can really understand what a drought really means. A drought means that there will be no production of our staple food, which is maize. If there was no drought, we would not have imported 660,000 metric tonnes of maize. However, because of what we are going through, we have decided to import the commodity. Furthermore, even in the midst of all the challenges that we have, the Government is not sitting idly. We have winter maize and early planting initiatives adding on to the national food basket. Soon, we will overcome what we are talking about.

Mr Speaker, I thank you.

Mr Mumba (Kantanshi): Thank you very much, Mr Speaker.

Mr Speaker, I am glad that the hon. Minister’s statement was presented just after the much awaited Budget re-alignment, which has been ably announced by the hon. Minister of Finance and National Planning. I appreciate the planned efforts that have been announced so far. However, I think, the people of Kantanshi would like the Government to be more ambitious. What do the people mean? Our food basket is not just about mealie meal. The various interventions that have been announced are welcome but, again, we are a country that has failed to produce cheap mealie meal even after spending close to half a billion United States Dollars (US) every financial year to respond to maize production needs. That, however, is not my intention when I ask about what the Government is going to do about the announced crop output. My intention is to find out what will happen to the cost of cooking oil, and what intervention the Government will put in place to regulate that commodity. Is it going to meet with companies like Amanita and Soyola to find out how they can work together to ensure that the cost of cooking oil does not go beyond the normal market price range?

Mr Speaker, at the moment, the cost of a chicken in Kantanshi is K150. Obviously, that means that stock brans that are used in poultry farming have become expensive, and will continue being expensive. So, what the people of Kantanshi wanted to know is how ambitious the Government is going to be in engaging manufacturers of essential commodities? For example, the Zambia Sugar Company was met by representatives from the Ministry of Commerce, Trade and Industry over its products, and we saw a reduction in the cost of a 2kg packet of sugar from K84 to K60. Are we going to see those kinds of interventions, and how soon will they be implemented so that our people can be confident that the Government is being more ambitious and proactive in meeting the producers even with the measures that have been announced? Is the Government also holding discussions with big chain stores like Shoprite and Choppies to see how the rising prices can be mitigated through tax rebates and so on? That was the spirit behind the concern that I raised.

Mr Speaker, how soon is the Government going to have such engagements, and how regularly is it going to be communicating with the people of Zambia on the updates so that we are confident that the challenges are being addressed holistically?

Mr Mubanga: Mr Speaker, I would like to thank the hon. Member for Kantanshi who has raised those concerns.

Mr Speaker, the Government is proactive. Soon, we will address such issues. I talked about engaging some of the companies that are trading in solar energy components, and are charging our people high prices. We are engaging companies just as the hon. Member has talked about the engagements with the Zambia Sugar Company and many other companies that might take advantage of the drought situation to escalate the prices of commodities.

Mr Speaker, the hon. Member is asking about how soon the interventions will be implemented. My answer is, very soon. The Government is looking into that and we will see to it that it is done.

Mr Speaker, I thank you.

_______

REPORT OF THE COMMITTEE ON LEGISLATION AND INTERNATIONAL AGREEMENTS ON THE CONSIDERATION OF THE STATUTORY INSTRUMENTS FOR 2023

Mr Mutale (Chitambo): Mr Speaker, I beg to move that this House adopts the Report of the Committee on Legislation and International Agreements on the Consideration of the Statutory Instruments (SIs) for 2023, for the Third Session of the Thirteenth National Assembly, laid on the Table of the House on Tuesday, 18^th June, 2024.

Mr Second Deputy Speaker: Is the Motion seconded?

Mr Kolala (Lufubu): Mr Speaker, I beg to second the Motion.

Mr Mutale: Mr Speaker, during the year under review, your Committee considered a total of seventy-two SIs issued by different Government ministries and agencies. I will only highlight a few of the issues encountered during its deliberations.

Mr Speaker, during the period under review, your Committee held a stakeholder engagement meeting with the Ministry of Labour and Social Services, and representative associations on Statutory Instrument (SI) No.48, the Employment Code (Minimum Wages and Conditions) (General) Order, 2023; SI No. 49, the Employment Code (Domestic Workers, Minimum Wages and Conditions of Employment) Order, 2023; and SI No. 50 of 2023, the Employment Code (Shop Workers, Minimum Wages and Conditions of Employment) Order, 2023. The meeting was held against the background of immense stakeholder concerns regarding high non-compliance to the regulations. Your Committee’s findings and recommendations are well documented in its report. However, allow me to highlight some of the concerns raised by the stakeholders.

Mr Speaker, your Committee observed with concern the low staffing levels at the Ministry of Labour and Social Security, which is only operating in sixty-four districts at present. In that regard, your Committee urges the Government to expedite the process of restructuring the ministry to ensure that the staffing challenges are resolved.

Mr Speaker, your Committee is further concerned that the Department of Labour, which is responsible for conducting inspections and ensuring compliance to the labour laws, has only eleven functional vehicles countrywide. That situation is affecting the effective conducting of routine inspections. Your Committee urges the Government to address the transport challenges that the department is facing in order to improve service delivery to the people of Zambia.

Mr Speaker, your Committee was concerned about the responses from the Executive in the Action Taken Report. Hence, it also undertook to assess the implementation of SI No. 39 of 2016, the Provincial and District Boundaries (Division) (Amendment) Order (Kalumbila and Mushindamo Districts), which created Kalumbila and Mushindamo districts. Your Committee noted with concern that while the intention to create new districts is well intended, the declaration of new districts is often not met with matching funding for building relevant infrastructure. Your Committee urges the Government to consider setting aside funding for the construction of infrastructure in Kalumbila District and all the other recently-declared districts in the country. Your Committee further urges the Government to expedite the process of degazetting the site in Kafulabunga area or consider the alternative location in Mafita area, which the stakeholders identified.

Mr Speaker, your Committee takes note that there has been progress made with regards to the Committee’s recommendations. Of the eighty-six recommendations made by your Committee in its report for the Second Session of the Thirteenth National Assembly, forty-seven were closed following the submissions of the Action Taken Report. That is an indication of a progressive step towards the Executive acting on the Committee's recommendations.

Mr Speaker, your Committee would like to urge the Government to enhance awareness and sensitisation with regards to delegated legislation, in particular, the SIs issued by ministries and quasi-Government institutions, in order to ensure compliance and appreciation of the regulations.

In conclusion, Mr Speaker, I would like to thank your Office and that of the Clerk of the National Assembly for the support rendered throughout your Committee’s sessions. I would also like to thank all the Government institutions that availed themselves during your Committee’s local tours of Lusaka Province, Central Province, the North-Western Province and Copperbelt Province as well as stakeholders who provided written memoranda, which your Committee relied on. For the information of the hon. Members, your Committee has also undergone modernisation. The name has changed from Delegated Legislation, it is now called Legislation and International Agreements, meaning that our scope has been widened.

With that submission, Mr Speaker, I beg to move.

I thank you, Mr Speaker.

Mr Second Deputy Speaker: Does the seconder wish to speak now or later? 

Mr Kolala: Now, Mr. Speaker.

Mr Second Deputy Speaker: Hon. Member for Lufulu, you may proceed.

Mr Kolala: Thank you very much, Mr Speaker.

It is Lufubu Constituency.

Mr Speaker, allow me to thank the mover of the Motion, the chairperson of the Committee, Hon. Mutale, for the excellent manner in which he has moved the Motion.

 Mr. Speaker, as you have heard, your Committee undertook tours and held meetings in which many things came out. As the seconder of the Motion, I will also look at a few things since the report has already been circulated. Other people will talk about the other issues.

Mr Speaker, on behalf of the people of Lufubu, the first thing I would like to bring to the attention of the House and the general public is the implementation of Statutory Instrument (SI) No. 41 of 2023, and the Tanzania Zambia Mafuta (TAZAMA) Pipeline, which we found operating at full capacity with sufficient stock during our tour. So, even when some people are talking about deficiencies or whatever, just know that they may be political statements. Otherwise, everything is in order. We expect to see the people of Zambia benefiting from that initiative because it may result in a reduction in fuel prices.

Mr Speaker, the second point I would like to bring out is on SI No. 60, on water utility companies, which talks about the removal of Value Added Tax (VAT). The SI was well-intended and very helpful. However, because of certain factors, we need to do more. The SI is not enough to see to it that our people get water at a lowered cost. From the findings of your Committee, currently, the water utility companies are making losses because they pay VAT and all the other tax requirements on chemicals and other equipment that they need for their operations. That makes it difficult for them to reduce the tariffs.

Mr Speaker, the third point is on SI No. 63, about which the Government was thoughtful in seeing to it that local councils are supplemented with funds to maintain roads, which is a very good initiative.  Of course, some city councils complained that the amount is not enough looking at how much work needs to be done. However, we know that the local authorities also have the Equalisation Fund and the Constituency Development Fund (CDF). I think, it is important to appreciate the Government for that initiative. I know, and your Committee realises that in emergencies, that fund will be very helpful. The only unfortunate thing is that at the time we were touring the local authorities, it was already about five months into the year, and they had not yet received the funds.

Mr Speaker, the fourth issue is on SI No. 67, the Customs and Excise (Suspension) (Media, Music and Film Equipment) Regulations. It is a well-intended and appreciated SI by the players in that industry. The only issue that was brought out and needs to be looked into is that of the clearing agents at the borders, which brings in another cost. The stakeholders are requesting that the Government looks into removing the agents.

Mr Speaker, the last point I would like to talk about is SI No. 51 on the Public-Private Partnership (PPP) regarding the Konkola Toll Plaza. It is a well-intended project, and the perfect move by the New Dawn Government. It is a very good lesson that we witnessed. The toll fees were fair except for two categories. The first one is on truck and trailers that are being charged K1,250. I think that should have been a two-way thing. One-way enforcement is too much for our people. Secondly, the Fuso Fighters that carry livestock are charged K350. I think that fee is too high. We request the relevant ministry and the people who look into such matters to ensure that even before the close of July, the fees structure is looked at and reduced to a reasonable fee of, at least, K100 or K150. That would be helpful.

Mr. Speaker, with that bit of additional information, I beg to move, and I support the report.

I thank you, Mr Speaker.

Mr Kampyongo (Shiwang’andu): Mr. Speaker, let me start by thanking and commending the mover of the Motion, the hon. Member of Parliament for Chitambo and the seconder of the Motion, the hon. Member of Parliament for Lufubu, as I make a few contributions in support of the adoption of the report.

Mr Speaker, let me also take this opportunity to acknowledge the hon. Minister of Labour and Social Security, whom we engaged last time regarding the issue of the National Health Insurance Management Authority (NHIMA). She seemed adamant and comfortable that NHIMA was well placed under her ministry. It is commendable that her ministry heeded our advice. That is how it should be. We are not here, in this House, to politick. We are here to point out certain omissions to the Government. So, I commend her ministry for taking heed of our recommendation to take NHIMA back to the Ministry of Health.

Mr. Speaker, your Committee’s report is well elaborated. I will just take an interest in some of the issues your Committee focused on concerning Statutory Instrument (SI) No. 48, the Employment Code, in general, and SI No. 49, which is the Employment Code meant for domestic workers in view of the minimum wage. The report highlights many challenges the ministry faces as far as stakeholders concerns. The concerns are mainly on non-compliance to the regulations either by the employers or failure by the ministry to follow up on non-compliant employers. We have a responsibility to pass laws and adopt Statutory Instruments (SIs) that are enforced by the Government. It comes to nothing if the laws cannot be enforced. The challenges the Committee’s report has raised are not insurmountable, such as motor vehicles for inspectors, they are things that the ministry can easily address to make the inspectors more effective. What is worse is that it does not show confidence in the system to the members of the public seeing their Government officials not being respected. There was a case in point, which was brought to the attention of the members of public. Senior inspectors from the Ministry of Labour and Social Security went to a transport company to conduct inspections, then, a person within that company called someone they were connected to. After that call, the officers were told to stop executing their mandatory functions. That should not be tolerated because it makes your people vulnerable. Imagine how the workers at that transport company felt. I am sure that they felt neglected by their own Government. They had issues they wanted to raise, and had reported the company to the ministry. They wanted support in order for them to be protected by their Government. So, in terms of the authority of ministry officers, we need to see authority; “teeth to bite”, people who are breaking and ignoring the law.

Mr Speaker, the other issue is obviously on continuous decentralisation. We need the presence of ministry officers in all the districts. We are told that we only have officers in sixty-four districts. That is undesirable. It is important that the ministry gets closer to the workers so that they can be protected. Further, with the biting economy, the people are stressed. The current minimum wage is outdated. I do not know what someone can do with K1 million when a bag of mealie meal costs K450.

Hon. Members: K1000!

Mr Kampyongo: I mean K1000, sorry. Thank you for the correction hon. Colleagues.

Mr Speaker, we do not know what one can do with K1000 when a bag of mealie meal is just about K450. Some people have to pay rentals, while others have to travel from their homes to places of work. What can they do? The minimum wage threshold is already outdated. It has been overtaken by the high cost of living. According to the food basket cost, as assessed by the Jesuit Centre for Theological Reflection (JCTR), a household of five people requires around K10,000. So, how many of our people are able to put food on the table? Most of our workers are stressed. We understand that the companies they are working for are equally pressed between a rock and a hard place. Most manufacturers have been adversely affected by loadshedding. So, production has reduced. Some of those companies will resort to the easiest thing to manage the situation, which is cutting back on labour. It is a very interesting balancing act. Those are the realities that a well-meaning Government must dedicate its time to addressing.

Mr Speaker, even as the hon. Minister of Finance and National Planning has presented the Supplementary Budget, he knows how difficult it is going to be to raise the revenue needed because the major contributors to the revenue basket are companies that are in production like Trade Kings Zambia and breweries. Now, if those companies cannot produce, how do you get revenue? Workers are also looking for better working conditions. Those are realities that the Government has to deal with in order for the people know that it is still relevant to them. Otherwise, the way the Government is looking tired, it will be very difficult to convince the people.

Hon. UPND Members: Question!

Mr Kampyongo: The Government needs to redeem itself. The matters on which to redeem itself are those that were raised in the report. Mr Speaker, it should show care for its people not us, we are just players here, in this House. Soon, the people will renew our mandate depending on what we do, especially the Government. It will go back to the same people who are failing to put food on the table.

Hon. UPND Members: Question!

Mr Kampyongo: That is the reality. Government hon. Members can pretend and say, “Eh eh!” but it will dawn on them.

Laughter

Hon. UPND Members: Question!

Mr Second Deputy Speaker: Order!

The hon. Member’s time expired.

Mr Kampyongo: With those few comments, I implore the hon. Minister of Labour and Social Security to be proactive.

Mr Second Deputy Speaker: Hon. Member, as you were concluding, the language you used was not parliamentary.

Mr Kampyongo: I withdraw the unparliamentary statement, and replace it by saying that the Government will go back to those people.

Mr Second Deputy Speaker: Resume your seat, hon. Member.

Hon. Member for Chama South, you may proceed.

Mr Mung’andu (Chama South): Thank you, Mr Speaker.

Mr Speaker, let me thank the mover of the Motion for the job well done.

Mr Speaker, I just want to touch on two issues. Firstly, the mover of the Motion indicated that the Ministry of Labour and Social Security is having challenges in terms of staffing. I would like to make an appeal by saying that if our people are to see meaningful contributions coming from that ministry, it is important that the Government considers up-scaling in terms of labour inspectors. Many of our people are in the informal sector, particularly in the small and medium enterprises (SMEs). I can see that the “Small” Minister, …

Hon. UPND Members: Question!

Mr Mung’andu: or … the hon. Minister of Small and Medium Enterprises Development is not around.

Mr Speaker, if one were to the check information on the informal sector, one would find that many of our people are either working as shopkeepers or welders; in restaurants, lodges or on construction sites. If we requested the Ministry of Labour and Social Security to give us statistics, we would discover that, probably, 60 per cent of our workforce is absorbed in that sector. How do we protect, for example, the rights of construction workers, shopkeepers and security personnel if we do not have sufficient labour inspectors? It is important that, as the Government makes pronouncements on the minimum wage, especially in the informal sector, it also has mechanisms to ensure that enforcement is done. The conditions of service that our people work under are bad, but they have no options. At times, they even fear addressing labour officers because they know that the moment those officers leave the sites, they will probably lose their jobs. It is important that the matter is looked into. As we look at Committee’s recommendations, I hope that the matter will be closed. We need enough labour inspectors.

Mr Speaker, my final point is on what the seconder of the Motion indicated; that the Committee was happy to see that the Tanzania-Zambia Mafuta (TAZAMA) Pipeline Limited was pumping processed diesel and had sufficient stock. Much as that is a good thing, we need to have strategic fuel reserves secured in almost all the provinces. I know that there are storage tanks that were completed in the Eastern Province. We also have many of them here, in Lusaka, like along Buyantanshi Road and beyond. The Government has to ensure that those tanks are filled up with diesel and other petroleum products.

Mr Speaker, at most of the filling stations, they do not have kerosene in stock. We need the products stored up for one reason; if transportation through the pipeline is disrupted– that is not our wish, as Zambians– by certain events, the country should not be affected. If anything, we should plan for any eventualities. If the sources of our crude oil are unable to supply to our country, we should be able to sustain ourselves for more than a year. That is the plan that we should put in place, as a nation.

Mr Speaker, we are talking about operationalising the Ndola Energy Power Plant again. That is a diesel-powered plant, which consumes millions of litres of diesel per day. What plans are we putting in place, as a nation, to ensure that we plan for a rainy day? Not only that, planning is a measure that will cushion the impact of the monthly revision of fuel prices. If we stock up enough fuel in our storage facilities, we will give relief to the consumers of petroleum products in terms of monthly price reviews. Should our currency also fluctuate, prices would be maintained for a month or two. As the situation is currently, when there is a fluctuation in fuel pump prices on the international market, it immediately affects our consumers.

Mr Speaker, the report is spot on. I, on behalf of the people of Chama South, am in support of it. With those few contributions, I wish to submit.

I thank you, Mr Speaker.

The Minister of Justice (Ms Kasune): Mr Speaker, allow me to commend the work of the Committee on Legislation and International Agreements for the work done during the Third Session of the Thirteenth National Assembly.

Mr Speaker, it is imperative for me to start by indicating that according to Article No. 62 and Article No. 63, Chapter No. 1 of the Laws of Zambia, only Parliament has the power to enact legislation in Zambia. However, Article No. 67 permits Parliament to confer the power to make Statutory Instruments (SIs) on a person or authority. Therefore, the work of this Committee; its mandate, which is, among others, to check on whether the delegated function of making SIs is being done within the confines of the enabling legislation, is highly commendable.

Mr Speaker, may I equally state that we have taken due note of the Committee’s observations and recommendations arising from part one of the report and, indeed, from the debaters who have also raised some concerns. Though I was a bit lost on some points raised concerning the Ministry of Labour and Social Security and the Ministry of Finance and National Planning.

Mr Speaker, we note that the Committee ably considered a total of seventy-two SIs. The findings were that the issuance of all the said SIs was done in accordance with the enabling legislation. Preparation and drafting of the SIs are done by my ministry. Therefore, I am elated to receive a report that confirms that the Government complied with the enabling legislation in the execution of delegated legislation. May I also hasten to mention that the Action Taken Report on the Committee’s observations and recommendations on the second part of the report will be subsequently tabled before this august House.

Mr Speaker, on behalf of the New Dawn Government of the United Party for National Development (UPND) under the able leadership of His Excellency the President of the Republic of Zambia, Mr Hakainde Hichilema, may I reiterate that we are fully committed to ensuring that the Acts of Parliament are timely supplemented by requisite SIs in order to make the laws of the Republic of Zambia more efficacious. In that regard, it is our goal to continue ensuring that when preparing and drafting SIs, all the stakeholders are consulted and that there is strict adherence to the delegated authority under the enabling legislation.

Mr Speaker, with those few words and response from the Government, I thank you.

Mr Mutale: Mr Speaker, I am grateful that our report has seen the face of the House today. I would like to thank the seconder of the Motion, the hon. Member for Shiwang’andu, the hon. Member for Chama South and the hon. Minister of Justice for contributing to the debate on this Motion.

Mr Speaker, the issues we raised in our report are very important for the Executive to act on. One issue that I have in mind is that of the Konkola Toll Plaza. We need to ensure that the toll fees at that plaza are revised. We know that it is under a Public-Private Partnership (PPP) agreement, but the fees that are being paid there are quite high.

Mr Speaker, we also need to look at issues concerning the Tanzania-Zambia Mafuta (TAZAMA) Pipeline. We were told that when the pipeline starts pumping finished products, we would see a variation in terms of fuel pricing. So, it is the wish of this Committee that the Ministry of Finance and National Planning ensures that the price variation comes through so that the people of Zambia can benefit from the pumping of finished products.

Mr Speaker, labour matters are very important, especially for shopworkers and maids. We need to ensure that our people start feeling the ‘heat’ of the Ministry of Labour and Social Security by adjusting the minimum wage.

Mr Speaker, with that said, I would like to thank your Office and that of the Clerk of the National Assembly for giving us the opportunity to undertake our work in an environment that was conducive.

I thank you, Mr Speaker.

Question put and agreed to.

REPORT OF THE COMMITTEE ON NATIONAL ECONOMY, TRADE AND LABOUR MATTERS ON FISCAL DECENTRALISATION IN ZAMBIA AND ITS IMPACT ON THE ECONOMY

Ms Sefulo (Mwandi): Mr Speaker, I beg to move that this House do adopt the Report of the Committee on National Economy, Trade and Labour Matters on Fiscal Decentralisation in Zambia and its Impact on the Economy, for the Third Session of the Thirteenth National Assembly, laid on the Table of the House on Thursday, 20^th June, 2024.

Mr Second Deputy Speaker: Is the Motion seconded?

Mr J. Chibuye (Roan): Mr Speaker, I beg to second the Motion.

Ms Sefulo: Mr Speaker, with reference to Order No. 209(j) and Order No. 210 of the National Assembly of Zambia Standing Orders, 2024, the Committee has considered the subject of fiscal decentralisation in Zambia and its impact on the economy.

 Mr Speaker, allow me to state from the outset that fiscal decentralisation empowers the local Government to make decisions tailored to the needs and preferences of their communities, thereby improving our responsiveness and accountability. With financial resources managed closer to the point of service delivery, there can be a more efficient and effective provision of public resources.

 Mr Speaker, allow me to comment on some of the key findings from the Committee’s engagement with various stakeholders on this topical issue. The Committee observed that the funds given to the local authorities through the Local Government Equalisation Fund (LGEF) have remained unchanged over a long period of time, thereby defeating the intended purpose, as the fund cannot meet the current needs. In that regard, the Committee recommends that the Government considers increasing the allocation to the fund to meet the current needs of the local authorities.

 Mr Speaker, another issue that the Committee was confronted with was that of the limited allocation of the grant in lieu of property rates. The Committee notes that Government properties are exempt from paying property rates. Instead, the local authorities receive a grant in lieu of rates. The Committee is, however, concerned that the grant is only a fraction of the rateable value of Government properties and is rarely paid on time. The Committee recommends that the Central Government revises the grant in lieu of rates upwards to make it more reflective of the market value of Government properties under local authorities.

 Mr Speaker, let me now comment on the poor state of the payment systems in some local authorities. The Committee observed that some local authorities still rely on manual payments which, in the Committee’s view, are easily manipulated resulting in loss of income. Additionally, clients are sometimes reluctant to line up or travel long distances to pay their rates. The Committee recommends that the Government takes measures to ensure that all the local authorities digitalise their payment systems by using options such as online or mobile payments.

 Mr Speaker, another thorny issue is that most local authorities are highly indebted, especially concerning statutory obligations. That situation should not be allowed to continue as it compromises the services provided in their jurisdictions, as most resources are directed towards servicing historical debts. The Committee recommends that the Government takes practical measures to resolve the indebtedness of most local authorities. More specifically, the Government should put measures in place to strengthen local authority institutions by enhancing their administrative and financial capabilities to ensure effective resource management. Additionally, there is a need for statutory bodies, such as the National Pensions Scheme Authority (NAPSA) and the Zambia Revenue Authority (ZRA), to consider waiving penalties on the debts owed by the local authorities.

As I conclude, Mr Speaker, allow me to place on record the gratitude of the Committee to all the stakeholders who rendered both written and oral submissions, which helped enrich the report before the House today. The Committee also wishes to thank you, Hon. Speaker, and the Clerk of the National Assembly and his staff for the guidance and support rendered to it.

With the above stated, Mr Speaker, I beg to move.

I thank you, Mr Speaker.

Mr Second Deputy Speaker: Does the seconder wish to speak now or later?

Mr J. Chibuye: Now, Mr Speaker.

Mr Kapyanga: Why?

Laughter

Rev. Katuta interjected.

Mr Second Deputy Speaker: May you resume your seat, hon. Member for Chienge.

Hon. Member for Roan, you may proceed.

Mr J. Chibuye: Thank you, Mr Speaker.

 Mr Speaker, as I appreciate and sincerely thank the chairperson of the Committee for moving the Motion, allow me to add a few pertinent issues even though she has covered most of points on fiscal decentralisation in Zambia and, indeed, its impact on the economy.

 Mr Speaker, I will zero in on a few points, eight in number, starting with the point on the power to raise and spend resources. Through our interaction, as a Committee, we were informed that even though the local authorities are allowed to raise some resources, the spending power still remains with the Central Government. The Committee, therefore, recommended that revenue, such as toll fees and motor vehicle licensing, be under the jurisdiction of the local authorities, as it is stated by the law.

 Mr Speaker, the chairperson of the Committee alluded to the point about the failure of the local authorities to meet statutory and other obligations, and I just want to echo her sentiments. Indeed, some of the local authorities are highly indebted. Most of the debt comes from statutory obligations, such as the National Pensions Schemes Authority (NAPSA) and the Zambia Revenue Authority (ZRA). Those are historical debts. The Committee suggested that the Government should consider writing off the debt so that the local authorities can start on a clean slate.

Mr Speaker, the third point is on the low disbursement of the Local Government Equalization Fund (LGEF). It came out clearly that the allocation that is given to the local authorities by the Government is not enough. It was recommended that the Government considers increasing or adjusting the allocation to the fund upwards so that the local authorities can meet some of their needs.

 Mr Speaker, in terms of the increased workload for the local authority staff, it was learnt that they have been overloaded from the time the Constituency Development Fund (CDF) allocation was increased from K1.6 million to the current K30.6 million, and as such, the Committee recommends that the Government considers creating incentives, such as extra duty allowances for principal officers and other officers directly involved in the implementation of CDF activities so that they are matched with the extra responsibilities that they are encountering. Additionally, the Government should develop a remuneration strategy for members of the Ward Development Committees (WDCs), as they play a critical role in fiscal decentralisation.

Mr Speaker, the other thing is the grants in lieu of rates. I do not want to belabour the point because the chairperson has already alluded to it. Indeed, most Government properties do not pay land or property rates, instead, the Central Government pays the local authorities grants in lieu of rates. It was recommended by the Committee that the Central Government revises the grant in lieu of rates to make the provision more reflective of the market value of Government properties. 

Mr Speaker, the Committee also learnt that personal levy has been static for some time, that it has been at K15 since 1997 when it was revised under the Personal Levy Act, Chapter No. 329 of the Laws of Zambia. The Committee recommends that personal levy should be adjusted upwards to increase the revenue raised by the local authorities.

 Mr. Speaker, most of the local authorities should migrate from the manual payment system to digital payment systems.

 Mr Speaker, in terms of the equal allocation of the CDF across all the constituencies, the Committee notes with concern that the size of a constituency, population, infrastructure development and other factors are not taken into consideration. Your Committee recommends that the Government adopts an equitable mechanism for the allocation according to the needs of a constituency. Further, the line ministry should provide additional funding to support different sectors of the economy, and not solely rely on the CDF.

 Mr. Speaker, with those few words, I submit.

I thank you, Mr Speaker.

Mr Kambita (Zambezi East): Mr. Speaker, thank you very much for this opportunity given to me to contribute to the debate on the Motion to adopt the report of your Committee, which is on the Floor of the House.

Mr Speaker, I endeavour to simply comment on the milestones that we have made through the decentralisation process, which is aimed at devolving fiscal functions to the most relevant and lowest organs of governance in our country; the local authorities. If one can see clearly, the local authorities are best placed for fiscal decentralisation in that they are the ones also managing the Constituency Development Fund (CDF), which has been managed well as far as the implementation of decentralisation is concerned. Fiscal decentralisation also requires the decentralisation of the revenue envelope. We seem to have done well on the expenditure side of decentralisation, but the revenue envelope is still centralised. Most of the funds that are spent at the local authority level still come from the Central Government.

Mr Speaker, looking at our laws closely, they seem to be in conflict with what we want to achieve in terms of decentralisation. I have in mind the Public Finance Management Act, 2018, which is instructive in terms of how public finances need to be accounted for by public institutions. The Act has rules on how public money is supposed to be collected and expended. The famous Control 99 Account is well explained in terms of how it should be utilised. Your Committee also delved a bit into explaining the challenges that the local authorities are facing in terms of rates.

Mr Speaker, there are some local authorities that are fairly rich in this country. If we achieved much in the planned mineral exploration activities, we would expect most of our local authorities to be quite rich. As the mining industry booms, the higher the amounts collected from rates would be because there would be more economic activities at the local level. However, your Committee was magnanimous enough to flag the challenges that the local authorities face, especially since they just receive grants from the rates that they collect. That is how the law is set. We need to simply re-visit the laws. When we commit ourselves to something, we should also be quick to commit to adjusting the laws so that they are in conformity with others.

Mr Speaker, I like the motivation so far seen from the Cabinet to make Government functions more efficient. There are already several laws that are being brought to the House for amendments during this Meeting. So, it is all about efficiency. The ideas and motivation are there to achieve total decentralisation except for the impeding issues that are in the laws in terms of how they are set. While we may want to achieve something on one hand, the law slows us down in trying to achieve it on the other hand. So, we have to collectively revisit our laws so that they can be efficient enough to achieve total decentralisation. I think, that is what your Committee talks about in the report. It has flagged the challenges or bottlenecks that exist at the local authority level. The challenges are such that we are unable to achieve the full devolution of functions, especially on the revenue envelope. The local authorities still have to depend on the Local Government Equalisation Fund (LGEF) to function appropriately.

Mr Speaker, the local authorities are surviving because of the CDF. The administrative component seems to be financing their operations. Of course, most of the work that they are doing is CDF-related. However, the scenario is a bit different for local authorities in rural and urban areas. In the urban areas, they seem to have more responsibilities. They manage big markets and perform many other functions, including cleaning up the cities. Those functions are not funded by the CDF mostly because that fund goes towards financing capital infrastructure and micro-capital infrastructure projects. In the rural areas, that is feasible, but for the urban local councils, they need the laws to be softened so that their revenue envelope may be good enough for them to function like the cities in developed countries; cities such as London, Manchester and New York, where a municipality is functional and self-contained. Even when coming up with by-laws in those cities, the authorities are effective because they are able to raise their own resources to finance their expenditure in terms of the mandate that they are expected to deliver on to the people they stand for.

Mr Speaker, in terms of our setup, the message in my submission is that we should re-look at some of the laws that slow down the decentralisation and devolution of certain Government functions to the important lower organ of the Government; the local authority, so that we can run an efficient Government, which is a good initiative.

Mr Speaker, with those few words, I submit.

I thank you, Mr Speaker.

Mr Kampyongo: Thank you so much, Mr Speaker, for giving me this chance to also make a few comments in support of the Motion to adopt the report ably moved by Hon. Sefulo and seconded by Hon. J. Chibuye.

Mr Speaker, I think, the issues raised in the report are pertinent and they require the Executive to address them. The Local Government Equalisation Fund (LGEF) was meant to create some kind of harmony between the local councils with the capacity to raise revenue and those that have no capacity. For example, the rural local councils cannot be compared to the town local councils. The lack of funds, which should be disbursed to the local councils, has posed a challenge on the only fund that seems guaranteed. Everybody is now pointing to the Constituency Development Fund (CDF). That is the reason there are challenges, such as the incident we heard about in Kalabo where the council opted to fall back on the CDF out of the need to implement certain undertakings because the LGEF which, ordinarily, should have been utilised was not flowing. As we know, the councils use the LGEF to undertake certain programmes and projects. However, what is available is the CDF allocation. So, that is why that council was found wanting. It might not be the only council in that situation. There could be other local councils in the same situation. We need to find a way of addressing the challenges because failure to do that we will continue to find our councils in such situations.

Mr Speaker, the issue of decentralisation has always been about ensuring that the portfolio functions of the Government are placed closer to the people with matching resources. However, when we move ten steps forward, we also move fifteen steps backwards. What do I mean? In terms of the CDF, which is the fund in question, we are made to believe that decision-making is supposed to be a down-up process; from the Ward Development Committee (WDC) to the CDF Committee (CDFC), then, having the recommendations forwarded for implementation. We have been told that within the first quarter of the year, we must finish making the plans. However, what is happening is that when the constituency makes its plans according to the funds, as allocated in the Budget, it starts receiving circulars from the Central Government about other projects which, probably, take up half of the amount that the constituency needs to disburse. So, the plans that are made by the CDFC have to be changed. Those are issues that need to be dealt with. The process may seem to be down-up, yet the decision-making is up-down.

Mr Speaker, what has shocked all of us is the decision to mop all the funds back to the Central Treasury from the local council accounts. Money is disbursed to the local councils through the local banks, and then it is called back. The local councils have to make recommendations about projects, for example sending details to Lusaka about a certificate number that is ready for payment for the construction of a school. What sort of decentralisation are we implementing? I think, hon. Colleagues on both sides of the House are faced with that challenge. We need to address it because when funds are appropriated and planning is done in the first quarter of the year, the expectation is that the local council will give out contracts or undertake procurement of what has been recommended by the CDFC. How is that process going to work out when the funds are not sitting in the local banks? The local councils have to send the payment certificates to Lusaka. I do not know, then, what kind of decentralisation we are implementing. The recommendations from your Committee are well-intended. 

Mr Speaker, in terms of manual payments that the report has spoken to, we also need to factor in challenges that the local councils are facing with regards to that. They are failing to process payments because they do not have power supply the whole day. How are they going to work if power supply is only available at night? Those are things that the Government needs to co-ordinate on so that the system is not ground to a halt. Those are the issues that are happening in our local councils. The report is thorough in that regard. We would not only want the Local Government but also the ministry to respond to the challenges that our local councils are facing.

Mr Speaker, regarding the point on the rates, from what and where can some of our local councils in rural areas, including Mwandi, collect rates to raise revenue? Is it from the royal palace? That is the only visible infrastructure in rural areas. If the Government attempted to do that, it would be assured of not coming back to this august House.

Interruptions

Mr Kampyongo: She is the mover of the Motion, she knows what I am talking about.

Mr Speaker, again, the LGEF was meant to help local councils, such as Mwandi and Luangeni, where they do not have anything that they can say has value apart from the few properties belonging to the Member of Parliament for the area. That is where a bit of value can be placed. Just like in Shiwang’andu, what can you realise from the rest of the structures? It comes back to the fact that the LGEF must be guaranteed in the rural areas.

Mr Speaker, I thought I could make those contributions.

I thank you, Mr Speaker.

Mr Chinkuli (Kanyama): Thank you, Mr Speaker, for this opportunity you have given me to add my voice to the debate on the Motion on the Table.

Mr Speaker, I would like to thank the mover and seconder of the Motion to adopt the report. It has been ably tabled and has brought out certain issues that have made me change the way I perceived the local council.

Mr Speaker, the House may wish to note that the local council is associated with inefficiencies. However, looking at the report that is being debated, one realises that it is because of certain challenges that it faces that it is looked at as an inefficient structure. Historically, the local council was designed to stand on its two feet, of course, with minimum supplements from the Central Government. It has been designed to have revenue bases where it can tap into resources through which it can sustain itself. With some policy pronouncements and changes, certain buffers or baskets were removed leaving it so vulnerable that each time it wants to conduct operations, it has to beg for funds from somewhere else. The local council was managing entities such as water and power supply, and motor vehicle licensing needs. Since those were removed, the local council does not stand on any revenue. It should have been provided with somewhere to tap funds from for its sustainability. Unfortunately, nothing was provided.

Mr. Speaker, functions are given to the local councils without matching resources. The Constituency Development Fund (CDF) management function has been given to the councils, but the question of how they are supposed to manage that component is a challenge.  Two days ago, we wanted a vehicle so that we could undertake certain tasks with a certain local council. We were told that there was no fuel for the vehicle. So, one can start questioning how functions can be given to an institution that cannot manage such issues.  Previously, despite having buffers or a revenue base to tap into, the local councils were given general grants for which they had jurisdiction to decide on whatever project or programme that needed to be carried out. Secondly, they could be given a special grant which, of course, they had no jurisdiction over because it was meant for programmes such as the containment of the cholera outbreak or any other disease. The Government could give that special grant for a particular purpose. The other type of grant was the capital grant for infrastructure development. It was used on capital projects that needed to be embarked on. The councils did not have any jurisdiction to that allocation because it was meant for a particular project. So, by having all the highlighted resources, they were able to function according to their mandate. However, the resources that they are supposed to tap into have been removed, which becomes a challenge for them. 

Mr Speaker, we are talking about decentralisation, and the local councils are not financially sound, yet we are assigning several functions to them. What results do we expect? The Government should look into their plight and ensure that the functions that are known to sustain them are given to them. If they cannot be given the functions, the Government should look for other avenues through which the councils can be helped to stand on their own. As my hon. Colleague put it, the councils are trying to tap into the CDF, which has guidelines, to see how best that fund can help them execute their mandate. That is not practical because auditors would want to find out what the funds are being used for. If we are to decentralise certain functions to our local councils, I would like to appeal to the Government to empower them so that they can stand on their two feet and give us the much-needed service delivery.

 Mr Speaker, I thank you. 

Mr Nyambose (Chasefu): Thank you very much, Mr Speaker, for giving me this opportunity to add my voice to the debate on this important report, which I support.

Mr Speaker, the local authorities were created to provide municipal services to the people. An effectively functioning local government system is the desire of every person and the Government of the day. I am happy that the mover of the Motion, the chairperson, and the seconder brought out serious issues that point to bringing back resources to the local authorities through fiscal decentralisation. As others have alluded to the fact that the local authorities need to have resources, I also add my voice to the same view. However, I will point out some of the issues that are challenges, as espoused by the other debaters.

Mr Speaker, the Government is the main institution that exists in most rural and urban areas in terms of infrastructure, such as schools and Government offices. However, it does not contribute much to grants in lieu of rates. I support your Committee’s recommendation urging the Government to ensure that it gives grants equivalent to the benefits forgone on rateable properties that exist in local authorities. As such, a local council in Chasefu, for example, will benefit. Currently, Chasefu and all the newly-created districts are not recognised as rateable districts. I would like to appeal to the Government to come up with a recommendation or law that will ensure that each district is rateable and can, therefore, charge rates on structures owned by people in such districts.

Mr Speaker, I would also like to mention that the local council’s high indebtedness is real. I have worked in the local council my whole life. The indebtedness is historical.  The local councils are struggling. Where did we go wrong? The time we started looking at local councils as commercial institutions is when we lost it. The local government is a wing of the Government. It is charged with the function of providing municipal services on behalf of the Central Government. However, at a certain point in the years past, council houses were sold off, and the local councils were asked to stand on their own. We lost it.  We are now coming back to the concept of decentralisation. Councils are perceived as independent institutions, which is not supposed to be the case.  The local government is the same as the Ministry of Education or the Ministry of Health.  It is a critical institution of the Government. Hence, local councils need to be given adequate resources.

Mr Speaker, councils are failing to pay retirees because they have been labelled. I am happy that the Government has brought back normalcy through decentralisation by giving them the responsibility to manage the enhanced Constituency Development Fund (CDF) because it is the wing that provides municipal services.  The Government has enhanced the CDF and, hence, asked the local councils to function as a real local government system.  We need to fine-tune the requirements about where they can generate revenue. However, if they were taken as commercial entities, they would be overcharging members of the community, then, the citizens would rise against their Government. They would not blame the local councils if such a situation were to occur, but they would say that the Government is overtaxing them. So, we need to find the money. Through fiscal decentralisation, the local councils should be given the resources for them to undertake the functions that we are taking to them.

Mr Speaker, billboard levies are collected by the Road Development Agency (RDA), a Government institution. The councils are told that they cannot collect levies for billboards placed along main roads, yet they are within their jurisdiction. Why stop them from collecting those levies? If another wing of the Government is collecting that levy, then, the councils will not have resources. Councils are failing to pay off retirees because they do not have the money. So, I support the recommendations.

Mr Speaker, the other thing I can say about what is contained in your Committee’s report is that personal levy needs to be revised.  However, most of the local councils, such as Chasefu, do not collect personal levy. Only Lundazi and Chipata city councils collect personal levy because the Ministry of Finance and National Planning has not given the personal levy codes to all the other districts that were created in the Eastern Province. So, small local councils are grappling because they cannot collect personal levy, which is being collected by other councils. The Chasefu Local Council does not even collect personal levy from the 473 teachers who were deployed to our town from the 30,000 recruited teachers because the local council’s code is still with the ministry. The ministry is supposed to deal with that matter by ensuring that each council has its own personal levy code so that they can collect what is due to the council from the civil servants.

Mr Speaker, I do not believe in the inefficiencies found in local councils, and I wanted to debate over the same matter at some point in time in the past. When a Council Secretary or Town Clerk is moved to another local council, that council starts functioning well. For other council officers, even if they are moved to other councils, they remain failures. So, labelling councils as being inefficient is not fair. It is an administrative issue. The local government should ensure that it has management or performance contracts for each officer so that the money that is coming under the devolution process is utilised properly. Some officers are failing.

Mr Speaker, in terms of organisational structure, local councils have so many people in administrative positions. Positions such as the human resource and administrative office can have about five officers at a small council, instead of having engineers who are supposed to administer the CDF allocation. The CDF is a major factor under the devolution of resources to the local councils. It is a major step, but we need to improve it so that the people of Zambia can see that the resources given to them by the Government are well-utilised.

Mr Speaker, I would have spoken more. This is an emotional subject for me, but I end here.

I thank you, Mr Speaker.

Mr Fube (Chilubi): Thank you, Mr Speaker.

Mr Speaker, this report has highlighted many issues, and we need to speak on them, as it may be.  My starting point is fiscal decentralisation. When talking about fiscal decentralisation, we need to bear in mind that there must be fiscal autonomy for the local government. Without fiscal autonomy, then, we are missing the point. Currently, the approach we have taken is that of one-size-fits-all. The local authorities are classified into different categories. There are city councils, town councils and all that, meaning that when we look at the base of –

Interruptions

Mr Fube: Please, the noise is too much.

Mr Speaker, when we look at the base of how local councils collect revenue, the economic activities are different. For example, the economic activities in Chilubi are not something that you can talk about. However, when it comes to money, they are –

Mr Mposha interjected.

Mr Fube: Mr Speaker, this hon. Minister is disturbing me.

Mr Speaker, when it comes to the money that the local government is supposed to bank on to emphasise fiscal decentralisation, it is mainly the Local Government Equalisation Fund (LGEF) and the Constituency Development Fund (CDF). Those funds are seen as something that has a semblance of what the local councils can depend on.

Mr Speaker, when we talk about the institutional and regulatory framework that manages all the finances that local councils come into contact with, I have in mind the Public Finance Management Act of No. 1 of 2018, the Constituency Development Fund Act, the National Planning and Budgeting Act No. 1 of 2020, and the Public Procurement Act No. 8 of 2020. Those instruments are supposed to facilitate the flow of activities, especially when it comes to developmental projects. That reminds me of the bottom-up approach that the CDF envisaged to achieve, which starts with the triggering of activities through a project list compiled by the Ward Development Committees (WDCs). However, when looking at that process and the fiscal decentralisation factors, the WDCs are overlooked in one way or the other. The situation currently is that the WDCs generate a list of projects and channel it to the Constituency Development Fund Committees (CDFCs). However, at that point, they find instructions from Lusaka; the Ministry of Local Government and Rural Development, on how the money is supposed to be spent. That takes me back to the issue of fiscal autonomy.

Mr Speaker, when the hon. Minister of Finance and National Planning was presenting the 2023 National Budget, I remember that on page No.45 of the Budget when he talked about the money that had been disbursed, he said that 75 per cent of the money was allocated to the CDF. He also promised that the 2024 Budget would take an equity approach, which would take into consideration issues such as the differences in constituencies, whereas some are rural. For example, in Chilubi, we have twenty-four wards, and its topography is very confusing. If one looks at the structure of financing currently, one will see that the local government is banking on the LGEF to pay the twenty-four councillors, and since there are no proper economic activities for the council to raise resources, it is struggling to do other things. LGEF has become more of an allowance fund for the councillors and it ends there.

Mr Speaker, equity approach was expected to seal the gaps among the urban, rural and peri-urban constituencies, but that did not happen. What we expected was for the rural constituencies to be receiving more because the economic activities in those areas are fewer, but that was not so.

Mr Speaker, the local government is protected and has a constitutional mandate. If we were to read Article No. 151, and Article No. 152 of the Constitution, we would note that they support the structure. The Constitution says that the local government should spearhead decentralisation at the district level. Since it is constitutional, what is lacking is a supportive environment in terms of legal and policy frameworks to support the already existing constitutional provisions so that local authorities can be in a position to champion development.

Mr Speaker, since most of the budgets, as per the local government approach, are supposed to be activity-based, I think, that is what is supposed to reflect at the national level regarding the instruments that I mentioned earlier, especially the National Planning and Budgeting Act. That means that the Integrated Development Plans (IDPs) that have been embarked on should also fit most of the activities into the local authority’s mandate. Alas, the situation we have is one in which an IDP has been developed, but when resources are available, we have all sorts of instructions around the resources. At the end of the day, we do not achieve the intended purpose. I think, with the development of the IDPs, it is high time we considered developing a district fund that the local authorities can administer apart from the CDF, which can specifically address the different developmental needs in particular districts.

Mr Speaker, I would have like to go on and on, but I realise that there is a need to properly wrap up the debate. The hon. Minister has to speak at some point. I support most of the recommendations made in the report. However, we need to realise that fiscal decentralisation should match with fiscal autonomy. That is my main message. That is also the message from Chilubi because there is no fiscal autonomy on the funds that are going into the district.

I thank you, Mr Speaker.

The Minister of Finance and National Planning (Dr Musokotwane): Mr Speaker, let me start by thanking the Committee on National Economy, Trade and Labour Matters for the report that it has rendered to this House. The topic that the Committee dealt with is fiscal decentralisation in Zambia and its impact on the economy. Fiscal decentralisation, if I may, simply means that the Central Government pushes money towards the district councils and rural areas. If it is done, what is the impact on the economy? Also, if it is not done, what is the impact on the economy? That is what this report here, on the Floor, is dealing with.

Mr Speaker, before I respond to the specific issues, I want to ask a question: Has fiscal decentralisation taken place? My answer is yes. It is taking place. Relatively, at least, it has happened. Three years or four years ago, the money sent from the Central Government to the district councils was not much. In most instances, it was not even enough to pay council employees later on to finance development projects that were expected across the country. With the decision made by the United Party for National Development (UPND) Government to enhance the Constituency Development Fund (CDF) three years ago, certainly, we can say without any doubt that a lot of money has been pushed to the rural areas through our district councils.

Mr Speaker, as a result of the impact of that decision on the economy, we see many things taking place. Where previously, there were no classrooms or teachers' houses, they are now being constructed in rural areas. What we see clearly, as construction is taking place in rural areas, is that our rural contractors are benefiting. They have found contracts, and they are busy undertaking construction projects. That is a positive impact on the economy in the rural areas.

Mr Speaker, our rural traders who sell building materials are busy because projects are coming up and require supplies of cement, window frames and stuff like that. That is an impact on the economy. Even those who sink boreholes are busy doing so, and that is another impact on the economy. Construction companies hire people in rural areas. Those people get paid, and they are enhancing their livelihoods. So, that is happening under fiscal decentralisation. Perhaps, I can give one more example. You will recall that previously, desks in schools were hardly available. If the Central Government wanted to procure desks, it would import them from South Africa or China. However, because the Government has pushed money into the rural areas and decided that the country is not going to import desks, our rural carpenters are busy making desks, and we see a lot of innovation in the manner in which desks are being made. So, without any question, fiscal decentralisation is taking place and the impact on the economy is positive in those rural areas.

Mr Speaker, the next question I would like to ask is whether fiscal decentralisation has taken place sufficiently. I would say that we can do better, especially if we can manage to make the implementation of CDF projects more effective. For now, as we know, the CDF allocation lies with the local councils and implementation is not as effective or as fast as we would want to see it happen. So, obviously, that makes the argument for increasing the CDF allocation, in real terms at least, even more hard to sell, but we should not give up. As hon. Members, we should keep on pushing so that the councils can perform better. If that happens, I think, the Central Government would even be happier to put more resources under the CDF. In the past, we have not done enough.

Mr Speaker, the point on the CDF, perhaps, leads me to answer some of the issues that were raised. One of the points raised was that the money for the CDF allocations is swept back to the Treasury. That just follows the stipulations of the so-called Treasury Single Account, which was introduced during the Patriotic Front (PF) Government’s time, and which we adhered to. We agree with that provision because we have been seeing a lot of money lying idly in local council accounts for long periods of time, and when the ministry wants to fund another activity, we cannot do that because the money is tied up in the council accounts. That is the reason we said the money should be taken back to the Treasury. When the local councils need it to fund something out of the CDF budget, they should say so. The standards of performance that we have agreed to is that when a local council says it needs the money to spend on a project, which is in their budget, it must be released within four days.

Hon. UPND Members: Hear, hear!

Dr Musokotwane: Mr Speaker, the delays are from the local councils because they submit their requests late. As the Treasury, we make sure that the money is available within four days when they need it. So, hon. Colleagues should not despair. The money is available. When the constituency needs it, the respective councils should submit accordingly. Hon. Members can also get in touch with me to help them out with the process. Even without getting in touch with me, the money is available.

 Mr Speaker, in terms of increasing the allocation to the Local Government Equalisation Fund (LGEF), I think, that is the matter we are discussing now. We are failing to absorb the CDF alone, at least, not as much as we would want it to be. So, why should we increase the LGEF allocation? The fund is supposed to be used for infrastructure. That is why in noting that we were not able to absorb infrastructure through the CDF, the LGEF would be devoted to paying the salaries of council officers since many of the councils are not able to do so. The only thing is that many of our local councils are lumped with excessive labour. Sometimes, we do not need the people who are brought in as employees in our councils. For example, there are ten fire brigade officers in Kalabo, which fire are they going to fight in that district, which requires ten people? That is something that my hon. Colleague, the hon. Minister of Local Government and Rural Development, is working on.

Mr Speaker, I think, the rest of the points raised were just suggestions, which we have taken note of. Perhaps, just a comment on the point made about the property rates, that is to increase the grants in lieu of rates. We accept that observation. However, it is also true that many local councils have the capacity to collect more revenue. If we look at a city like Lusaka, from the number of people with properties, we see that the percentage of those who are paying rates is probably about 10 per cent. So, we want to see the councils step up and collect more rates. In fact, if they did so, we would afford to lower the rates.

Otherwise, Mr Speaker, the rest are recommendations, and we have taken note of them, and we will try our level best to implement them.

Mr Speaker, I thank you.

Hon. UPND Members: Hear, hear!

Ms Sefulo: Mr Speaker, I would like to thank Hon. Kambita, Hon. Kampyongo, Hon. Chinkuli, Hon. Nyambose and Hon. Fube for debating the Motion on your Committee’s report, and the recommendations that they have made.

That said, Mr Speaker, I thank you.

Hon. Members: Hear, hear!

Question put and agreed to.

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ADJOURNMENT

The Minister of Finance and National Planning, and Acting Leader of Government Business in the House (Dr Musokotwane): Mr Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.

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The House adjourned at 1251 hours until 1430 hours on Tuesday 25^th June, 2024.

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