DAILY PARLIAMENTARY DEBATES FOR THE FIRST SESSION OF THE ELEVENTH ASSEMBLY

Thursday, 24th November, 2011

The House met at 1430 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

__________

QUESTIONS FOR ORAL ANSWER

CULTURAL PRODUCTS MAINSTREAMING

32. Mr Kaingu (Mwandi) asked the Minister of Chiefs and Traditional Affairs:

(a) what plans the Government had to mainstream cultural products into economic gain to create wealth;

(b) how the Government was assisting entrepreneurs in the creative and visual arts to achieve sustainable enterprises; and

(c) how citizens were being assisted to derive real benefits from indigenous knowledge.

The Minister of Chiefs and Traditional Affairs (Mrs Wina): Mr Speaker, the Government will closely work with Their Royal Highnesses to transform their traditional ceremony venues into platforms where the local people, who are producers of cultural goods and services, will be marketing and selling their products to the locals and international visitors for wealth creation, hence putting more money in their pockets.

Hon. Government Members: Hear, hear!

Mrs Wina: Additionally, the Patriotic Front (PF) Government will continue with the construction of provincial cultural centres which will also be extended to district level. Upon completion, these facilities will avail space for our cultural practitioners to sell their cultural goods and services to tourists and art lovers. This is to enable them generate income while music, theatre, dance and other performing arts can help our artists to provide entertainment to the masses. This will earn them reasonable incomes for their work at these cultural villages.

Mr Speaker, while the established artists and cultural centres will provide some form of apprenticeship to cultural practitioners, the PF Government feels that formal education in the arts is essential in order to attain high levels of skills development.

Sir, it is, therefore, the Government’s intention to encourage teaching of art subjects at all levels of education.

Mr Speaker, the PF Government will continue to support programmes of the National Arts Council of Zambia so that individual artists and arts’ associations benefit.

Sir, the Government will also review relevant legislation to support the development of the cultural sector.

Mr Speaker, in order for our citizens to derive benefits from indigenous knowledge, we are doing it through the following measures:

(i) the PF Government will continue to support programmes of traditional health practitioners of Zambia in administering traditional medicine to our people; and

(ii) the PF Government will continue to support the holding of recognised traditional ceremonies where a lot of indigenous knowledge is exhibited for posterity.

I thank you, Sir.

Mr Kaingu: Mr Speaker, that was a very good answer, indeed. However, I would like to find out whether the ministry is considering engaging big shops like Shoprite and Game Stores to promote community-based enterprises or produce and products, especially from rural areas.

Mrs Wina: Mr Speaker, the Ministry of Chiefs and Traditional Affairs has plans in those lines. At the moment, we are encouraging our artists to produce the best. We are also looking into the issue of quality control so that what they sell is marketable not only locally, but also internationally.

I thank you, Sir.

LOCAL GOVERNMENT ELECTIONS

33. Mr Chisala (Chilubi) asked the Vice-President:

(a) what had caused the failure by the Electoral Commission of Zambia (ECZ) to conduct local government elections in a number of wards during the 2011 Tripartite Elections; and

(b) how many wards had been affected in the following provinces:

(i) Eastern;

(ii) Northern;

(iii) Western; and

(iv) Southern.

The Vice-President (Dr Scott): Mr speaker, the failure by the ECZ to conduct local government elections in a number of wards was due to uncontested wards, deaths of candidates and candidate errors arising from transposition of candidate pictures and omission of validly nominated candidates on some ballot papers, as per an attached schedule (Appendix 1) which I will lay on the Table.

Mr Speaker, the wards that were affected are as follows, province by province:

Provinces Ward/District 

Eastern 
Eight Wards: Khumba in Chadiza District;
 Chibungwe in Chama District;
 Rukuzye in Chipata Distrct;
 Kasamanda and Ncheka in Mambwe District; and
 Wachitangachi, Msuzi and Chilola in Lundazi District.

Northern 
Five Wards: Katamba and Bumba in Chilubi District;
 Lualuwo in Kasama District;
 Lyendwe in Mpulungu District; and
 Thendere in Mafinga Distrct.

Western 
Two Wards: Luanchuma in Lukulu District; and
 Lewanika in Mongu District.

Southern
Six Wards: Nachibanga and Mubula in Choma;
 Mosi-o-Tunya and Maramba in Livingstone;
 Mulimya in Siavonga; and
 Mwenda in Sinazongwe.

Mr Speaker, I will lay the paper on the Table because the part I have left out has very detailed information on wards with cases of picture transposition and those with omission of validly nominated candidates.

Mr Speaker, I thank you. 

Mr Chisala: Mr Speaker, may I learn from His Honour the Vice-President whether the ECZ has plans of revamping its performance to the expectation of the Zambian people, especially that people have been complaining about its poor performance.

Dr Scott: Mr Speaker, it is hard to say whether failing to hold elections in thirty plus wards out of 2,000 plus is a very poor performance. We should be reviewing the ECZ with the view to getting ever better conducted elections.

I thank you, Sir.

Mr Habeenzu (Chikankata): Mr Speaker, as regards ballot papers, what I know is that people from different political parties were sent to counter check and verify whether the ballots that had been printed were correct. Now, I am wondering how there were some ballot papers missing when they were brought.

Dr Scott: Mr Speaker, this answer makes no reference to missing ballot papers. It makes reference to transposed pictures, for example, which is quite common. In this case, you would find that the ballot paper was there, but the picture had been switched with another name. Furthermore, the answer makes reference to omissions of validly nominated candidates. In this instance, for example, seven candidates would be nominated, but only six would appear on the ballot paper when it came to be inspected. Quite why these errors were not picked up in their entirety at an early stage of inspection, I really cannot say because I was not involved.

I thank you, Sir.

Dr Kalila (Lukulu East): Mr Speaker, may I know where the ballot papers that will be used in the upcoming by-elections were printed.

Dr Scott: Mr Speaker, as I recall, apart from the fact that this is a new question, for this round, we are using the same printer (UPG) as we used in the general and tripartite elections. However, from now on, we are going to use our own printing equipment.

I thank you, Sir

Dr Scott laid paper on the Table.

INDIGENOUS CITIZENS IN HOSPITALITY INDUSTRY

34. Mr Kaingu asked the Minister of Information, Broadcasting and Tourism what assistance was available to indigenous citizens in the hospitality industry to enhance their participation and enable them derive tangible benefits from real tourism.

The Deputy Minister of Information, Broadcasting and Tourism (Mr Tembo): Mr Speaker, I wish to inform this august House that the PF Government attaches great importance to the sustainable development of the tourism sector due to its socio-economic benefits. Such benefits include job creation, revenue generation for the Government, through taxes, foreign exchange earnings, promotion of rural development as well as being a catalyst of wealth creation and a strategy for poverty reduction.

Mr Speaker, hon. Members of this House may wish to know that there are tremendous opportunities for indigenous Zambians to participate in the tourism sector. This is because Zambia is endowed with numerous tourist attractions which are yearning for exploration. These attractions are the natural and cultural heritages presented through, among others, wildlife in twenty national parks and thirty-six game management areas, diverse culture with seventy-three dialects, over forty waterfalls, rivers and lakes as well as the scenic landscapes. The above attractions, in most cases, tie in with people’s ways of life and, therefore, can be interpreted, packaged and developed for the benefit of the people who live around them. Participation in the tourism sector, in this regard, will not only create the necessary job opportunities, but will also assist in redistributing wealth from tourism through entrepreneurship.

Mr Speaker, the Government employs a number of strategies in order to assist indigenous citizens in the hospitality industry to enhance their participation and enable them derive tangible benefits from real tourism. These include, among others, financing.

Mr Speaker, the Citizens Economic Empowerment Commission (CEEC), a public institution, was established, in 2006, for the purpose of providing finance to Zambians to participate or re-finance their businesses to include those in the tourism sector. The CEEC, as members may recall, has among others, sources of funds amalgamated in some sectoral empowerment funds, in 2007, such as the Tourism Development Credit Facility (TDCF) in order to save the people of Zambia better through a streamlined structure. This empowerment fund is meant to grow through timely re-payments in order to serve more Zambians. My plea to hon. Members present here is for them to take interest in the activities of members in their constituencies who have borrowed from the CEEC, TDCF and, indeed, other sectoral empowerment funds and urge them to repay the loans for the benefit of the Zambians.

Mr Speaker, another strategy aimed at enhancing indigenous citizens’ participation in the tourism sector is the prioritisation of the tourism sector in the Zambia Development Agency Act.

This prioritisation entails that sector players can benefit from incentives under the Act. Incentives give an operator relief and an opportunity to restructure the business for it to be viable. These incentives apply to domestic and foreign as well as new and existing businesses.

Mr Speaker, in order to further enhance the participation of indigenous Zambians in the tourism sector, my ministry provides advisory services to would-be investors and players in the sector as well as technical information on issues such as trends in tourism.

Sir, in addition, my ministry, in collaboration with other land owners, spearheads the planning of tourism development areas in order to make land readily available for both foreign and domestic investments. My ministry further packages and promotes identified opportunities for investors. All the above is done in order to facilitate decision making to would-be-investors and players in the sector.

Furthermore, Mr Speaker, my ministry, through the Zambia Tourism Board (ZTB), provides market access to all licensed tourism enterprises to include those, by indigenous Zambians, through their promotional activities, both at home and abroad. Licensed tourism enterprises are uploaded on the ZTB website and, in some cases, are included in promotional materials that are used in their promotion and marketing campaigns.

Sir, this is because the ZTB undertakes generic marketing of a destination and are, therefore, better placed to include all tourism outfits in their marketing undertakings. This is further with the understanding that tourism marketing is a costly activity and that most indigenous Zambians run outfits at the micro and small levels and therefore, do not have adequate resources to engage in sustained marketing campaigns of their outfits.

Finally, Mr Speaker, I wish to inform this august House that my ministry is trying to assist indigenous Zambians to participate in the tourism sector and has undertaken to bring business closer to the operators through engaging them, encouraging the promotion of the Meetings, Incentives, Conferences and Exhibitions (MICE) sub sector of the tourism product. This is because MICE tourism is resilient to external shocks and that it brings in direct income, jobs and other socio-economic benefits to the hosting destination.

Sir, it is as a result of the above that Zambia, together with Zimbabwe, was granted an opportunity to jointly host the United Nations World Tourism Organisation (UNWTO) General Assembly in 2013.

Let me take this opportunity, Mr Speaker, to urge the private sector, civil society organisations and other specialised professional groups to partner with the Government in bringing the meetings, conferences, seminars and also exhibitions to the different locations of our country for MICE tourism to directly contribute to the growth of the economy.

I thank you, Mr Speaker.

Hon. Government Member: Hear, hear!

Mr Kaingu: Mr Speaker, that is a very good answer, indeed.

Hon. MMD Members: It is too long!

Mr Kaingu: Hon. Minister, the big sister concept is a very good concept and it has worked in other sectors like agriculture. Will your ministry not consider adopting this big sister concept where big operators can adopt small operators?

Mr Tembo: Mr Speaker, that is quite a good suggestion, we will ensure that we adopt it.

I thank you, Sir.

Mr Chisanga (Mkushi South): Mr Speaker, in his answer, the hon. Minister has talked about many things. My question is that this Government has been in power for two months, therefore, why is it misleading the people of Zambia that it has done a lot in this ministry?

The Minister of Information, Broadcasting and Tourism (Mr Lubinda): Mr Speaker, that question was, obviously, meant to be provocative. However, when former hon. Ministers ask questions in the manner that Hon. Kaingu has, this Government will provide the answer as it is, without making reference to whether it is the previous Government that came up with these programmes or not. This is because this Government is a very responsible Government and will give you the answers that are suitable. I hope my colleague will realise that when we give answers, we give them honestly and truthfully.

I thank you, Mr Speaker.

Dr Kalila: Mr Speaker, to assess the level of uptake by indigenous Zambians of the measures outlined by the hon. Deputy Minister, I would like to know, as a matter of example, just two indigenous companies that have benefited from these measures.

Mr Lubinda: Mr Speaker, that is, obviously, a new question, but I can assure my dear brother that there are more than twenty indigenous companies that benefitted from only one incentive, that is the financial incentive from the Tourism Development Fund which, to date, is owed a colossal amount of K135 billion. Beyond that, there are many other indigenous tourism enterprises that benefitted from the allocation of land, some of which are owned by hon. Members of Parliament who are extremely enterprising. When they went to ask for land for tourism enterprises, they were given preferential treatment.

Sir, I would like to take advantage of this question and kindly appeal to my good friend to go back to Lukulu where there are many beautiful sites along that beautiful river. Please, take advantage of this incentive that we are giving you and come to us. We will assist you to acquire land so that you can go into tourism enterprises.

I thank you, Sir.

Mr Habeenzu: Mr Speaker, how accessible is the Tourism Development Fund? Can an indigenous person from Chikankata access it?

Mr Lubinda: Mr Speaker, the hon. Deputy Minister said that there are incentives to support indigenous Zambians. If the hon. Member knows that the people of Chikankata are as indigenous as any other Zambian then, obviously, they too can access that money. It is very accessible. All they have to do is go to the Citizens Economic Empowerment Commission (CEEC) through the district offices. If the hon. Member had been careful enough to follow debate, in this House, he would have known that the CEEC is now represented in every district of the country. Please, may he go and inform the people in Chikankata that they should not lose out. This is their money and they need a very effective Member of Parliament for them to access it. Please, go and educate them because we want them to benefit.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Mbewe (Chadiza): Mr Speaker, I would like to find out whether there is no need for collateral to access this money.

Mr Lubinda: Mr Speaker, my hon. Colleague, who was a Deputy Minister, will have known that the fund we are talking about is domiciled in the Ministry of Commerce, Trade and Industry and that such questions would best be answered by my colleagues in that ministry. Nonetheless, let me inform him that as a way of making that fund accessible to a lot of Zambians, the threshold was reduced to K50 million and all applicants for funds up to this amount do not require to provide any collateral. I thought that was something that my colleague would have actually been educating us on this side about.

Thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Muchima (Ikeleng’i): Mr Speaker, I would like the hon. Minister to clarify whether he is referring to the fund under the CEEC or a different one. If it is a different fund, what is it and how much is involved?

Mr Lubinda: Sir, I am extremely surprised that my good friend, who has been sitting here listening very attentively, missed the answer which has been repeated three times. Firstly, it was mentioned by my colleague, the hon. Deputy Minister, and I also reiterated twice that the Tourism Development Fund has now become an integral part of the Citizens’ Economic Empowerment Fund (CEEF) which my good friend is actually a beneficiary of.

Thank you, Sir.

Laughter

MINERAL EXPLORATION IN NORTHERN PROVINCE

35. Mr Chisala asked the Minister of Mines and Natural Resources:

(a) when mineral explorations were last carried out in the Northern Province; and

(b) whether any mineral deposits were found and, if so, what these minerals were.

The Deputy Minister of Mines and Natural Resources (Mr Musukwa): Mr Speaker, the Ministry of Mines and Natural Resources last carried out mineral explorations in the Northern Province during the period 2007 to 2008. The explorations were carried out in 1030 north-east, 1030 south-east, 1130 north-east and 1130 south-east degree sheets areas covering parts of Kasama, Mporokoso, Luwingu, Mpika and Chilubi districts. The works done involved geochemical sampling of base metals.

The results showed no presence of base metal deposits in the area.

I thank you, Mr Speaker.

Mr Chisala: Mr Speaker, does the Government have any serious intentions of getting back to the remaining districts to carry out fresh explorations?

Mr Musukwa: Mr Speaker, the Government continues to engage in serious exploration works across the country and, in due course, we will be able to go to the area in question.

I thank you, Sir.

2011 CONSTITUENCY DEVELOPMENT FUND

36. Mr Chisala asked the Minister of Local Government, Housing, Early Education and Environmental Protection:

(a) how many constituencies had received  the 2011 Constituency Development Fund (CDF) as of July, 2011; and

(b) what reasons had been advanced for the non release of the CDF to the rest of the constituencies.

The Deputy Minister of Local Government, Housing, Early Education and Environmental Protection (Mrs Banda): Mr Speaker, fifty-seven constituencies received their CDF as of 31st July, 2011, totaling K41 billion. The Ministry of Finance and National Planning cited the poor revenue inflows in the collection of taxes and the expenditure on the general elections which was funded by the Government of the Republic of Zambia as the reasons for the non release of the CDF in full.

Thank you, Sir.

Mr Chisala: Mr Speaker, may I know the breakdown of how this disbursement was carried out.

The Minister of Local Government, Housing, Early Education and Environmental Protection (Professor Luo): Mr Speaker, I really love this question because I think it is important for the hon. Members of Parliament to know that when we are in leadership, we should share the cake  equally.

The distribution was as follows. Fifty-five Movement for Multi-party Democracy (MMD) constituencies received the CDF by 31st July, 2011. By the same date, one National Democratic Focus (NDF) constituency and one United Party for National Development (UPND) constituency were given this fund, but none of the Patriotic Front (PF) constituencies had received this money.

Hon. Government Members: Shame, shame!

Professor Luo: However, on 31st August, 2011, further funds were distributed. Fourteen MMD, four UPND and one PF constituency received funding.

In the third phase that was disbursed during my tenure of office, we set a criterion of giving opportunity to rural constituencies first because of rural poverty.

Hon. Government Members: Hear, hear!

Professor Luo: The distribution was as follows. Seventeen PF rural constituencies received CDF because they were left out in the first phase. The UPND, which was trailing behind the MMD, received CDF for seven of its constituencies and five MMD constituencies were given this fund, despite the former ruling party’s selfishness.

Hon. Government Members: Hear, hear!

Professor Luo: Currently, we have thirty-nine constituencies, mainly from the urban cities that have not received their CDF. We require a total of K28 billion to be able to distribute the CDF to the remaining constituencies. The Ministry of Finance and National Planning has assured us that we will be given these funds soon and they will be distributed based on opportunity so that those who have not received can be given priority.

Mr Speaker, we must remember that these offices we hold are for the benefit of Zambians not for the benefit of a few.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Mwiimbu (Monze Central): Mr Speaker, I would like to find out from the hon. Minister, the number of UPND constituencies that received the CDF before her time. I would also like her to confirm whether the constituencies which were represented by the UPND Members of Parliament that received it are held by rebellious hon. Members of Parliament.

Hon. Government Members: Pact yawonaika nomba.

Professor Luo: Mr Speaker, we did not actually do a breakdown of constituency by constituency. However, I will come back to the House to give the actual constituencies that have received these funds. It is possible that, maybe, this was the case, but I would not like to speculate.

I thank you, Sir.

Dr Chituwo (Mumbwa): Mr Speaker, can the hon. Minister of Local Government, Housing, Early Education and Environmental Protection indicate if other than what she has stated, such as party affiliation, there were any other criteria used for the disbursement of these funds.

Mr Chisala: Aba tabaliko, nimwe mwali mu system.

Professor Luo: Mr Speaker, without sounding rude to my uncle, the hon. Member of Parliament for Mumbwa, he is the immediate past hon. Minister for this ministry and he has the answer of the criteria used. It would have been nice for him to share the criteria with us. However, in the ministry, when we asked for the criteria that was used, the officers did not tell me except that the MMD constituencies were given.

Mr Speaker, you may also wish to know that when I was showing you the distribution, the last amount that was released was K21, 600,000,000. The figure includes money that was borrowed to satisfy the fourteen constituencies. Therefore, when we were paying the K24 billion that was given, we had to pay back the money that was borrowed. I just cannot remember the three constituencies, but I can come back to the House and give this information.

I thank you, Sir.

Mr Kazabu (Nkana): Mr Speaker, may I know from the hon. Minister of Local Government, Housing, Early Education and Environmental Protection what, in her view, was the rationale and justification for the discriminatory distribution of these funds.

Professor Luo: Mr Speaker, the way disbursement was done, for example, one was on 14th June, 2011, and the other on 31st August, 2011. As much as I would not like to really speculate in this august House, these periods were very close to the elections. The other thing that has baffled me ever since I came to this House is when you look at the people who came back as hon. Members of Parliament, you realise that they are mainly former hon. Ministers and I end there.

I thank you, Sir.

Laughter

Hon. Government Members: Hear, hear!

Ms Sayifwanda (Zambezi East): Mr Speaker, I am one of the MMD Members of Parliament from Zambezi District, but both Zambezi East and Zambezi West did not benefit from that fund. The Ministry of Gender and Women in Development distributed moneys to all the 150 Members of Parliament in this House. I would like to find out from the hon. Minister, because time is running out, when this money will be disbursed to the remaining constituencies.

Professor Luo: Mr Speaker, I sympathise with my young sister, the hon. Member of Parliament for Zambezi East. This week and last week, we are celebrating sixteen days of Gender Activism. So, you may be a victim of gender-based violence …

Laughter

Professor Luo: … and I will ensure that there is gender balance in the distribution of the CDF during my tenure of office. I want to assure you, hon. Member of Parliament, that as soon as money is made available by the hon. Minister of Finance and National Planning, you will receive priority.

I thank you, Sir.

Mr Habeenzu: Mr Speaker, how is the distribution of the CDF for next year going to be done?

Professor Luo: Mr Speaker, I will come back to the House to give you the criteria that will be used to distribute the CDF next year. Secondly, because of the abuse cited in the audit report of the CDF, we are now trying to put a piece of legislation in place to ensure that the law takes its course should the CDF be abused.

I thank you, Sir.

Mr Speaker: Hon. Member for Kalomo Central.

Hon. Government Members: Aah!

Mr Muntanga (Kalomo Central): Mr Speaker, my constituency is one of those that have not received the CDF. A week ago, the hon. Minister of Finance and National Planning confirmed that the money had been transferred to the Ministry of Local Government, Housing, Early Education and Environmental Protection for onward transmission, but when will it be disbursed? I talked to the hon. Minister of Local Government, Housing, Early Education and Environmental Protection and would like to know what her position is.

Professor Luo: Mr Speaker, unfortunately, my appointment in the Government of the Republic of Zambia is that of hon. Minister of Local Government, Housing, Early Education and Environmental Protection and not Minister of Finance and National Planning. Therefore, this question is, probably, misdirected.

I thank you, Sir.

Mr Taima (Solwezi East): Mr Speaker, I would like to find out from the hon. Minister if she is aware that, in her response, there is a general insinuation that all MMD constituencies were given the CDF prior to the elections. I would like to find out from her if she knows that out of the entire North-Western Province, only about three constituencies were given the CDF even when the North-Western Province had ten constituencies that were MMD out of the total number of twelve. To be more specific, Solwezi East, which was and still is MMD, has not received that money and I am not a female hon. Member of Parliament as Hon. Sara Sayifwanda. Is she aware of that status quo?

Laughter

Professor Luo: Mr Speaker, yes, I am aware that there are about four constituencies that are MMD-held in the province, while there are nine UPND constituencies and twenty-six PF constituencies that have not received the CDF.

If you know the definition of gender, it encompasses both male and female. Therefore, you may also be a victim of gender-based violence.

Hon. Government Members: Hear, hear!

Professor Luo: Mr Speaker, you may also wish to know that there was a question raised on some of the constituencies for which money was borrowed, which I think was a second thought by the MMD party in trying to show that the distribution was being done equally. The money that was borrowed as an afterthought was for Kasempa, Mwinilunga East and Mwinilunga West. I assure you, hon. Member of Parliament, that during my tenure of office, I will set a criterion which I will share with the House to bring fairness and sanity to the distribution of the CDF.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Mwanza (Solwezi West): Mr Speaker, my question has been overtaken by events.

Dr Kazonga (Vubwi): Mr Speaker, the hon. Minister indicated, in her response, that in the first disbursement, fifty-five were MMD constituencies. Later on, she indicated that she made a special consideration by using the criterion of rural poverty. Would the hon. Minister indicate, out of those fifty-five MMD constituencies, how many were rural so that we make a reasonable comparison with what she later said?

Professor Luo: Mr Speaker, without sounding rude to the hon. Member of Parliament who has just asked a question, we should learn to be apologetic to the people of Zambia. Even if I had to give a breakdown of the constituencies that received the fund, I do not think that it can justify the action that was taken.

I thank you, Sir.

Dr Musokotwane (Liuwa): Mr Speaker, it would still have been useful to get the breakdown so that the truth comes out. As a matter of demonstrating that the previous Government was a balanced one, is the hon. Minister aware that Liuwa Constituency, to date, has not received the CDF?

Professor Luo: Mr Speaker, I did say that there are four MMD constituencies that have not received the CDF. Maybe, the hon. Member was not listening, but we all get upset when the hon. Minister of Finance and National Planning is not listening to us and wants to be mingy with the money. Perhaps, the hon. Member, who is asking the question, was a victim and was punished for not releasing the CDF in good time.

I thank you, Sir.

Laughter

Ms Imenda (Luena): Mr Speaker, the hon. Minister stated the major political parties as beneficiaries of the CDF. Is she aware that there are some minority parties, which I will not mention? If she is aware, have they also benefited?

Professor Luo: Mr Speaker, I just want to share, once again, with the House that the distribution of the CDF will not be based on party politics, but on fair distribution. When the criterion is set, we will bring it to Parliament so that we inform everybody how it will be distributed. I am also aware that this Parliament has women in the minority, some of whom represent some of these small parties. Definitely, we will take gender into account when making the criteria.

I thank you, Sir.

_______________{mospagebreak}

MOTIONS

BUDGET 2012

(Debate resumed)

Mr Mtolo (Chipata Central): Mr Speaker, first of all, I would like to congratulate the hon. Minister of Finance and National Planning on his able presentation of the Budget.

Mr Speaker, to me and the people of Chipata, we consider this Budget as one that offers continuity. We note, with pleasure, that programmes that are fundamental, for example, the Food Reserve Agency (FRA) and Farmer Input Support Programme (FISP), have not been disturbed, but enhanced. That shows that the current Government would like to continue on the good works that were started by the former Government.

Mr Speaker, I would also like to acknowledge the fact that the hon. Minister of Finance and National Planning has given credit to the former Minister of Finance and National Planning, Hon. Dr Musokotwane, on the good works that he did. He actually mentions him by name. It is also a fact that the current rating of Zambia as a B plus economy is also appreciated by the current hon. Minister of Finance and National Planning. In this regard, we would like to say that that is the way things are supposed to be.

However, it is clear that the Budget needs some input from the hon. Members present here. There are contradictions which must be pointed out to the hon. Minister so that he could correct them. For example, on paragraph 107 of the Budget Speech, the hon. Minister of Finance and National Planning starts with a hard statement that reads:

 “… empty glory of statistical euphoria.”

Mr Speaker, I feel that statements like that were definitely misplaced in such a profound document. These documents are read by many people and are supposed to be impartial and non-political for us not to be misunderstood as a people of Zambia.

Mr Speaker, when you look at figures, for example, on education, you will note that, in the PF Manifesto, it is clear that there was some statement, again, attributed to the MMD Government on the lack of support. The term used was “a paltry 18 per cent allocation of the Budget to the education sector.” However, a stark contradiction is that, in the current Budget, the allocation is even less than 18 per cent. It is 17.5 per cent. I think such a statement should be corrected.

Mr Speaker, let me now talk about health.  In the PF Manifesto, which I have read many times and will continue doing, it is stated that 15 per cent of the gross domestic product (GDP) will go towards health, but the current figure is 9.3 per cent. One wonders why there should be such a certain and glaring difference.

The other issue I want to look at, Mr Speaker, is the lack of innovation and firmness in the speech. The people of Zambia, including myself, expect a new outlook and innovation in the Budget. These are simple things. I have gone through this Budget and I have not seen issues where the Government should outlay funds on capital projects in this thick volume.  For example, forty-seven years after Independence, we still have one old stretch of railway line across our country.  Why should it be like that? The worst thing is that, in the current Budget, there is nothing to improve that. This is a new Government and I am part of it. So, I would like to see capital projects, which are of value, like railway lines included in this Budget. That is what we need. This ‘B plus’ rating that Zambia has achieved, which the hon. Minister says offers an opportunity to diversify options of resource mobilisation should be used on real projects in this country. We cannot, until now, be talking of one railway line. Let us construct a railway line from Chipata to Lusaka so that we can add value as a new Government. To me, that is what I expect from this Budget.

Mr Chikwanda entered the Assembly Chamber.

Mr Mtolo: Mr Speaker, I am very happy to see the hon. Minister walking in.

Ms Kalima: Quality.

Mr Mtolo: Sir, on dams, one would have expected explicit statements just like the President presented his speech by categorising the exact number of dams to be constructed in each province. That is the type of development people expect now in Zambia.

On agriculture, I expected the hon. Minister to simply state, in very clear terms, for example, that so much money is needed to build silos in a given province.

Hon. Opposition Members: Hear, hear!

Mr Mtolo: That is the type of development and Budget that we would like to see. We want real capital projects that the private sector will find very difficult to do. There will be very few people who will come in our country to construct railway lines and to build silos in certain places which are of very high productivity.

Sir, as regards the areas with water bodies, like Chilubi where my brother comes from, I would have expected the Government to improve the current situation there by buying boats so that they can be used for transportation rather than the canoes which kill our people. Those are the types of projects we would like to see.

Hon. Member: CDF.

Mr Mtolo: The CDF is very little.

People from rural areas, Mr Speaker, have common problems, such as the lack of water, hospitals, feeder roads and schools. Whether you are PF, UPND or MMD, what is needed are these simple things and, I think, our current Budget should direct resources towards those things that people need. Why should I go back to Chipata and be asked whether or not we have approved the Budget to which my response would be in the affirmative and, then, six months later, people still continue drinking water from the same water holes as goats, cattle and wild animals. I think we need to simplify our Budget and give the people what they want. These are problems which I believe are owed to lack of innovation and firmness, which our Budget is actually a victim of.

Mr Speaker, I also expected, in this Budget, to see innovation. We know that no matter what happens this time, next year, farmers who would have delivered their produce will still remain unpaid because we have seen that the figure that has been provided is less than what is required. Even if the FRA gets money from the banks, we will still have a shortage because we know that we will have a lot of maize that will be produced. Why not have innovations to support programmes by introducing a receipt system? This will be good for the farmer so that whoever has a receipt has value and can use it for trade? For example, this time, instead of farmers still hanging on to the receipts and expecting to be paid money, they could have used these receipts to go to fertiliser distribution agencies so that they can be given their inputs on time.

Hon. Opposition Members: Hear, hear!

Mr Mtolo: That is the type of innovation that we would like to see in the Budget.

Mr Speaker, whilst talking about this, I would like to take advantage of my time to state that maize, in Zambia, will continue being one of the major crops. Even with our low output per hectare, the House might want to know that no matter what happens, in South Africa, for example, because of their soils, their output per hectare cannot be compared to that of Zambia. In fact, the output for the farmers in South Africa is as good as our peasant farmers. Why is South Africa producing more? It is because it uses more land. I thought I should state this because, yesterday, I heard my brother talk about this. I do not want to contradict him, but to add value to what he said.

Hon. Members: Hear, hear!

Mr Mtolo: Having said that, Mr Speaker, allow me to talk about agriculture in relation to the Budget. I have been a great admirer of the current hon. Minister of Finance and National Planning. I have actually been reading many of his articles and it is discernible from them that he is a man who believes that agriculture will and should be the mainstay of our economy. He believes so much that the Zambian Budget should be funded domestically, not through external sourcing. He is also a great believer in equitable distribution of wealth. Now, since the Budget is out, I would like to ask him a few questions before it is approved.

In this first PF Budget, agriculture has been given 6.1 per cent of the total GDP. The MMD had given it 5.9 per cent. However, the guidance from the Maputo Declaration is 10 per cent of the GDP. One wonders why Hon. Chikwanda, who has continuously talked about agriculture, would now give us an allocation of 6.1 per cent of the GDP. I am yet to understand this.

Mr Speaker, as regards the issue of borrowing, Hon. Chikwanda is a man who believes in the domestic financing of our Budget. However, I look at this Budget and painfully realise that 23 per cent of it will be financed by money from outside and that external financing is of two types. 70 per cent is made up of loans while only 30 per cent are grants. I ask myself why Hon. Chikwanda would start getting money from outside and increase the borrowing capacity for us to finance our Budget. All along, I have read and loved how he writes because his documents are well-written and pleasant to read. His use of the English language is fantastic. This is why I wonder why he is borrowing more money to finance our Budget. In all his writings, not only this year, but all the years that he has been at home writing many reports, he has spoken about domestic financing.

Interruptions

Laughter

Mr Mtolo: As regards the equitable distribution he has talked about repeatedly, we know that, in Zambia, about 64 per cent of the people are poverty-stricken. However, when you look at the money that has been given to agriculture, which money will go straight into the pockets of the poor people, it is only 6.1 per cent of the GDP. I, ask myself, again, what mathematics the hon. Minister is applying. We, in the rural areas rely on the Government. I and the whole of Chipata were very happy when we heard that he is the hon. Minister of Finance and National Planning for the reason that he was not an elected hon. Member of Parliament, but nominated. We were very delighted. However, with these figures, he is worrying us. Where is the equitable distribution, Sir?

Hon. Opposition Members: Hear, hear!

Mr Mtolo: By the way, as regards the 23 per cent that he wants to borrow, he is aware that, as at now, only 50 per cent of all the money the foreigners said they would give us has been given. How can he rely on them again? This is the end of the year, and yet we have only received 50 per cent. These are figures in his report.

Mr Speaker, before my time runs out, I would like to talk about crop diversification. On this issue, it is easy to say that we will diversify. We can easily strangle the people producing maize.

The Vice-President walked into the Chamber.

Mr Mtolo: I would like to remind His Honour the Vice-President, who has just walked in, and it is very nice to have him here, that when we are dealing with diversification, …

Laughter

Mr Mtolo: … let us be very careful. If we are going to diversify, for example, into groundnuts, we have to ask whether Zambia is now ready to grow and sell them. It is not ready because, in the whole country, we do not have more than five shelling or grading plants. How can we diversify into that crop only to sell it in shell? The answer is we cannot. Therefore, we should have money in the Budget to support the shelling and grading of groundnuts. It is the same thing with cassava. I mentioned in my …

Interruptions

Mr Mtolo: Kutongola yayi mayo.

Laughter

Mr Mtolo: I mentioned, in my maiden speech, that cassava needs technology. The cassava that we produce and sell is totally unmarketable anywhere in the world. For it to be, we need technology. Therefore, in this Budget, we should start putting money for technological enhancement, either through the University of Zambia (UNZA) or, indeed, research stations that can produce this technology.

Hon. Opposition Members: Hear, hear!

 Mr Mtolo That is what we would like to see in Chipata.

Lieutenant-General Shikapwasha: Quality!

Mr Mtolo: Mr Speaker, I can see that my time is running out. I will leave out of my debate issues on tourism and the environment. However, I will make sure I give the content to one of my colleagues who has not presented yet.

Sir, we, in Chipata, would like some simple questions to be answered. Where are the railway lines and when are they going to be laid? The PF has an opportunity, as a new Government, to tell us to tighten our belts so that money can be used for real projects like railway lines. I would like answers on boreholes. Where are they? Like my brother from Kalabo complained, we need clean water.

Hon. Opposition Members: Hear, hear!

Mr Mtolo: Therefore, hon. Minister of Finance and National Planning, give us an increased CDF because that money has some kind of ownership. I will be able to make more boreholes for the people of Chipata and that is what we want.

Hon. Opposition Members: Hear, hear!

Hon. Opposition Member: Zoona.

Laughter

Mr Mtolo: Mr Speaker, the last issue I can talk about is that of many primitive deaths that can be prevented in our country. This can be done by answering this simple question: Where are the hospitals? Let us have more hospitals. We should be seeing these things happen. We do not want money to be budgeted, and yet just go towards allowances. Hon. Minister, when you say, “This money is for building hospitals,” we should see the hospitals.

Mr Speaker, I thank you.

Hon. Opposition Members: Hear, hear!

Mr Chipungu (Rufunsa):  Mr Speaker, I thank you for affording me an opportunity to debate the Motion on the Floor. From the outset, I wish to record my support for it. There are many reasons for my supporting the Motion and they include the fact that this Budget is, certainly, a good one.

Hon. Government Member: Hear, hear!

Mr Chipungu: Mr Speaker, I have observed that my input, in the capacity of the portfolio that I held, some time back, has been reflected. Everything that we suggested has been reflected. This Budget is also an MMD Budget.

Mr Speaker, I note that the hon. Minister of Finance and National Planning is a product of the MMD …

Hon. MMD Members: Hear, hear!

Mr Chipungu: … with long experience in running the Government. Look at his name initials, A. B …

Hon. Members: C

Mr Chipungu: I want to end at A and B and his colleague RB …

Laughter

Mr Chipungu: These are very similar initials, indeed, and the two were best friends at Independence. Mr Speaker, I also want to look at the theme for this year, which is: “Making Zambia a better Place for All.” This was surely taken from our slogan, which was: “RB, a President for all Zambians.”

Laughter

Mr Chipungu: Mr Speaker, I am, however, sad that the PF Government has failed to reduce the size of the Yellow Book. His Honour the Vice-President used to condemn the volume of the Yellow Book. He used to talk about carrying it on a wheelbarrow. This time around, he has failed to reduce it. Why has he failed?

Mr Speaker, let me start my debate by commending the hon. Minister of Finance and National Planning for being mature in the manner he presented his Budget Speech. Obviously, we all saw that he was calm during his presentation. He was composed and displayed a good sense of humour, but still remained focused.

Sir, I was particularly happy that he acknowledged the fact that the MMD left a strong base in place. Whether one likes it or not, the MMD is still a giant.
 
Laughter

Mr Chipungu: It performed very well. You can see this from the number of developmental programmes that it left behind.

Hon. Opposition Members: Hear, hear!

Mr Chipungu: Mr Speaker, unlike other hon. Members in this august House, the hon. Minister further commended the performance of his predecessor, Hon. Dr Situmbeko Musokotwane who is the former Minister of Finance and National Development.

Mr Speaker, the hon. Minister showed maturity when he informed this House that the PF Government would commit itself to finishing off developmental projects that were started by the MMD Government. This is commendable and is how it should be.

Sir, I have only two issues which I hope to talk about. I want to talk about skills development, particularly, relating to the work of the Ministry of Labour, Youth and Sport and the CDF.

Mr Speaker, I am somehow saddened to see that the Ministry of Youth, Sport and Child Development, that was coming up so well, has been messed up. It has been realigned …

Mr Speaker: Order! The word ‘messed up’ is unparliamentary. May the hon. Member withdraw it.

Mr Chipungu: Mr Speaker, I withdraw that word.

Sir, the activities of the Ministry of Youth, Sport and Child Development were confused …

Laughter

Mr Chipungu: … by being merged with the Ministry of Labour.

Mr Speaker, this is not right. We need a stand-alone ministry, in Zambia, …

Hon. Opposition Members: Hear, hear!

Mr Chipungu: … to take care of the challenges that our youths are facing today. I find it very difficult to welcome the new change. Those who had never been to the ministry which used to deal with youth affairs had the tendency to demean its importance.

However, Mr Speaker, I want to state that this used to be a very important ministry which had so many challenges. I would like to emphasise the fact that there is a need for a stand-alone ministry which will be able to critically address a number of problems affecting our youths today. I am, therefore, urging the PF Government to create a separate ministry for youth affairs immediately.

Hon. Opposition Members: Hear, hear!

Mr Chipungu: The youths compose 68 per cent of the total population in this country. Can this recently-merged ministry really look at their problems from the labour point of view?

Hon. MMD Member: With Shamenda’s age!

Laughter

Mr Chipungu: Mr Speaker, we have institutions such as the Commonwealth which are advocating for the creation of a stand-alone ministry to deal with youth’s affairs. Now, why should Zambia, which is forty-seven years of age, go backwards by merging the ministry dealing with youths’ affairs with another ministry?

Sir, under the previous Government, we went round this country holding conferences for our youths. The problems that they were bringing out were similar. One of the issues that was coming out very clearly is that they wanted a stand-alone ministry which would be dealing with youths’ affairs. They said that they did not want a ministry which would combine their issues with those for sport, child development or labour. They wanted a stand-alone ministry.

Hon. Opposition Members: Hear, hear!

Mr Chipungu: Mr Speaker, I want to emphasise, once again, that we had the privilege of being visited by the Secretary General of the Commonwealth. In our meetings, he indicated that most of the Commonwealth countries, if not all of them, needed to create a stand-alone ministry for youths’ affairs.

Sir, although there is an upward increment in the allocation for issues to do with labour, sport and youth with regards to infrastructure development, there is still a need to look at the ministry responsible for these issues just like other ministries. It should be given the same attention just like the ministries of Agriculture and Livestock, Education, Science and Vocational Training or Health.

Mr Speaker, I suggest that this ministry should be given more money and not the little amount that has been allocated to it. In order to run this ministry, not less than K500 billion, would be the best.

Sir, I am, however, happy with the Government’s commitment to hosting the 2012 Zone Six Games. I note that a sum of K3.4 billion has been allocated for infrastructure development. What about money for sports development?

Mr Speaker, there is no money which has been allocated for infrastructure development in rural areas. We must bear in mind that the majority of the people who use facilities like sports infrastructure are our youths.

Sir, the PF has started ignoring the plight of the youths, after they voted it into power. I think that is not right.

Hon. Opposition Members: Shame!

Hon. Government Members: Question!

Hon. MMD Member: Emphasise!

Mr Chipungu: Mr Speaker, my last point is about the CDF. It has done wonders in many constituencies, including in Mandevu.

Hon. Opposition Members: Hear, hear!

Mr Chipungu: Mr Speaker, we were told, in this august House, that, in Mandevu Constituency, a number of bridges were constructed using the CDF. I think that was commendable. In my constituency, it has equally done wonders. The CDF has made it possible for a number of bridges to be constructed in my constituency. It has also enabled us renovate a number of schools and teachers’ houses. It has also made it possible for us to construct some community markets and bus stations, just to mention a few projects.

Sir, if this money is increased, the volume of projects would also increase in my constituency.

Mr Speaker, my proposal, therefore, is that the CDF be increased to not less than K2 billion.

Hon. Opposition Members: Hear, hear!

Mr Chipungu: Sir, without increasing this money, I am sure that the rural constituencies like mine will continue suffering in terms of accessing development. We are likely to suffer because most of the money from the line ministries will not be received by rural constituencies.

Sir, I want to emphasise, once again, that it is important for the CDF to be increased.

I thank you, Sir.
 
Hon. Opposition Members: Hear, hear!
 

Mr Zimba (Kapiri Mposhi): Mr Speaker, thank you for giving me this wonderful opportunity to add my debate on the important Motion which is currently on the Floor. I call this opportunity wonderful because this is the first time I am debating such an important Motion in my life.

Hon. Members: Hear, hear!

Mr Zimba: Sir, allow me to congratulate the hon. Minister of Finance and National Planning for the manner in which he presented the Budget. I was so impressed that he presented the Budget with an open mind. He has shown maturity and wisdom.

Hon. Government Members: Hear, hear!

Mr Zimba: Mr Speaker, it is not easy to bounce back at ministry level, especially after being away from it for some years. However, I am not surprised that the hon. Minister has come back to the Ministry of Finance and National Planning because his integrity is unquestionable. In the Budget Speech, the hon. Minister did acknowledge that the MMD Government laid a solid foundation for this county’s development. It is rare to find people who can praise others for the good things they have done because the world is full of jealousy and confusion. There are a few hearts of that nature. Therefore, Hon. Chikwanda should be given a lot of good names because he is very open minded when doing things.

Mr Speaker, I have learnt one or two things from Hon. Chikwanda. He mentioned that the MMD laid a solid foundation for this county’s development because it left reserves of about US$2.5 billion representing 4.3 months worth of import cover. That is excellent. The MMD Government had done very well on that part. That is why the hon. Minister of Finance and National Planning was able to come out in the open and congratulate it for the work it did. It is from the gross national reserves that we sometimes measure the growth of our economy. For instance, if the PF Government raises the national reserves to become worth about US$5 billion by the end of its term, then we will say that it would have performed well.

Mr Speaker, allow me to go in detail and analyse the Budget quickly. I will firstly talk about agriculture because I am a farmer. Agriculture is a major source of growth for our economy because it can bring about development through the alleviation of poverty throughout the country. By the way, did you know that when God created this world, he gave Adam and Eve a farm to cultivate and not to play around with?

Laughter

Mr Zimba: Mr Speaker, therefore, when we talk about agriculture, we are referring to a development initiative which God had started. Thus, you should not confuse things in this sector. Whatever professions you have, you will one day retire and go back to your farms because that is where you started your personal development from. I would like to tell the hon. Minister of Finance and National Planning that agriculture is very important and that it must stay in Zambia forever.

Mr Muntanga: Hallelujah!

Laughter

Mr Zimba: Mr Speaker, sometimes, we may need to go beyond the Maputo Declaration of 10 per cent and up our allocation to the agricultural sector to about 15 per cent of the National Budget because agriculture is here to stay. The mines which we always keep talking about will, one day, be closed. All the minerals underground will one day finish. It is not possible for us to predict when that day will be because we cannot see what is underground. However, in the agricultural sector, it is possible for us to do things according to our plans. 

Mr Speaker, allow me to thank the PF Government for continuing with the FISP. It is a very good innovation. We can bear with it for only having increased it by K15 billion because it has just formed Government.

Hon. Government Members: Hear, hear!

Mr Zimba: Mr Speaker, in the 2013 Budget, we will need them to improve on this. There is only one thing that is worrying me. You will find that when this money is released, extension services will be nowhere to be seen. These extension officers have become farmers. They are the ones who are fighting for the same fertiliser that the peasant farmers are supposed to get. This is a problem. I am urging the PF Government to sort this problem out. How does K50 billion address the issues which I have mentioned above? I think this figure is too little. I urge the hon. Minister to increase the allocation because it will need to sort out a lot of issues.

Mr Speaker, I also want to tell the hon. Minister that we deliver fertiliser to peasant farmers through co-operatives. Surprisingly, they were not mentioned anywhere in the Budget Speech. This is very dangerous. The co-operatives were not mentioned both in the President’s Address and the Budget Speech and, therefore, were not mentioned in all the speeches that followed. If we do not include issues to do with co-operatives in our planning, one day, we will be doomed. Sometimes, I travel to Kenya where co-operatives are active. The Kenyans are now doing better than us in this regard despite us being the ones who taught them how co-operatives are supposed to work. In Zambia, the participation of co-operatives in the agricultural sector is diminishing because of non allocation of funds to their operations.

Mr Speaker, when you go to Rwanda, which is coming from war, you will find that co-operatives are doing fine. If the PF Government does not move quickly in this regard, it will be in trouble, at the end of the day, because it will fail to deliver what the peasant farmers require.

Mr Speaker, is the hon. Minister aware that 2012 has been declared as the International Year of Co-operatives by the United …

Interruptions

Mr Zimba: No, I will mention it myself. Why do you want to tell me?

Laughter

Mr Speaker: Order! The hon. Member does not require any assistance to deliver his speech.

Laughter

Mr Zimba: Mr Speaker, does the hon. Minister of Finance and National Planning know that 2012 has been declared as an International Year for Co-operatives by the United Nations Secretary-General? This declaration is asking governments, across the world, to channel their development funds meant for various programmes through co-operatives. The Government, in Zambia, should channel some of its funds to various sectors through co-operative movements so that they are kept active. Without well-functioning co-operatives, we shall have a problem because there will be confusion in our developmental system. The best thing we can do is to strengthen the role played by co-operatives in the country’s development.

Mr Speaker, I am also worried that the purchasing of maize has only been allocated K300 billion. Most of my colleagues here have debated soundly that we spend trillions of kwacha when purchasing maize. Therefore, it does not make sense for the Government to allocate K300 billion towards this purpose. I wish the hon. Minister of Agriculture and Livestock was around. I would have actually told him that, in September and October, he will sweat. He will run around to look for money for the purchase of maize. The best he can do is to persuade the hon. Minister of Finance and National Planning to find more resources for this exercise so that he does not have to run around looking for money in September and October. I am sure everyone will remember what I am saying during that time.

Hon. Opposition Members: Hear, hear!

Mr Zimba: Mr Speaker, when traders and briefcase business people discover that the Government has only allocated K300 billion for the purchase of maize, they will re-organise themselves. They will come and buy this maize cheaply from our farmers, who will be broke when the Government runs out of money for the purchase of maize. The business people will buy maize at between K25,000 and K30,000 per bag, which means that our farmers will not make a profit at all. Owing to this, by the time the Government will find more money, there will already be a problem. So, farmers are not a hindrance to the agricultural sector any more. They are hard workers and need to be supported in a big way.

Mr Speaker, farming is a business. One should not think that it is something to play around with. The best thing to do is to support the farmers. Hon. Minister of Finance and National Planning, how I wish you had increased this fund because that would have been a good thing.

Sir, there is a friend I met at a farm and the father was telling him that, “Sonny, do not think that when you are drinking tea in town we are also automatically drinking tea in the villages, no.”

Laughter

Mr Zimba: When this was said, I immediately realised that we, in the rural areas, definitely need to be fully supported.

Mr Speaker, the balance of K800 billion from the K1.6 billion allocation to the agricultural sector, is not enough. The previous speakers have already mentioned that this money has to cater for livestock, irrigation implements, strengthening of co-operatives, dam construction and many more. Therefore, this K800 billion allocation is still very little.

Sir, I do not know why we, sometimes, underrate agriculture. At the moment, we are supposed to be talking of allocating to this sector in trillions of kwacha since the kwacha has devalued. If we continue talking in terms of billions, then, we are not going anywhere.

Mr Speaker, let me quickly talk about local government and housing. I have noticed, in the Budget Speech, that you have increased grants to the councils by up to 100 per cent. I think this is a good move because the councils are limping. This will help them move forward. When the 100 per cent grants are released to the councils, they will move forward and do better.

On the other hand, Sir, my worry is on the CDF.

Hon. Opposition Members: Hear, hear!

Mr Zimba: The CDF does a lot of wonders in our constituencies, but now you are letting it go just like that. I have observed that every debater has said a lot about it. Therefore, I would propose that since we are asking for K5 billion, which we have been told is not feasible at the moment, can the hon. Minister of Finance and National Planning be kind by giving us K2.5 billion. This way, as I go back to Kapiri Mposhi, the people will appreciate and say, “Hon. Zimba, you have worked something out.” I am sure my reputation as an hon. Member will become more credible.

Laughter

Mr M. H. Mumba: So what?

Laughter

Mr Zimba: Mr Speaker, let me now talk about the windfall tax.

Hon. Opposition Member: Hammer!

Mr Zimba: This is what made the PF win the elections.

Hon. Government Members: Awe! Awe!

Mr Zimba: It talked highly about this so much while the MMD was busy listening.

However, last week, when I went to the constituency, the people were asking me about this windfall tax. I told them that we were waiting for the PF Government to reintroduce it. If I were in the shoes of the PF Government, the best thing I could have done would have been to apologise.

Hon. Opposition Members: Hear, hear!

Mr Zimba: It will put this case to rest.

Hon. Opposition Members: Hear, hear!

Mr Zimba: It will do wonders. Apologise by telling the people that while you said one thing, you have changed your stance because what you have found is another thing. This will put this matter to rest.

Hon. Opposition Members: Hear, hear!

Mr Zimba: Sir, let me also talk about the bank interest rates. This is the only thing that the PF Government has done wonders about within ninety days.

Mr Livune: Question!

Mr Malama: Well-done!

Mr Zimba: Well-done, the PF Government, for reducing the bank interest rates because we have physically seen this and it is working.

Hon. Government Members: Hear, hear!

Mr Zimba: We will not always be negative. We will be both negative and positive. So, where we will be negative, accept that as well.

Hon. Government Members: Hear, hear!

Laughter

Mr Zimba: Mr Speaker, I am forced to look at my colleagues on your right because they are looking at me eagerly.

Laughter

Mr Zimba: The other thing that the PF Government has actually scored in is reducing the price of fuel, although the reduced figure is little. Last week, I was buying about seven drums of diesel and what I found out, that day, is that I pocketed about K2 million.

Hon. Government Members: Hear, hear!

Mr Zimba: That is a reality. Hold on.

Laughter

Mr Zimba: Let me quickly talk about the retirees. I do not want to speak when we resume business after its suspension.

Laughter

Mr Zimba: Sir, the K400 billion that has been allocated to the retirees is very little. The retirees’ package is in trillions and , therefore, K400 billion is very little. Please, can you increase this because the retirees are waiting out there. There are so many retirees in my constituency.

Mr Speaker, finally ….

Mr Muntanga: Do not panic!

Mr Zimba: Finally, …

Mr Speaker: Order!

Business was suspended from 1615 hours until 1630 hours.{mospagebreak}

[MR SPEAKER in the Chair]

Mr Zimba: Mr Speaker, before business was suspended, if you can recall, I had just used the word “finally” to indicate that I was at the final edge of my debate.

Sir, all I wish to do is appeal to the PF Government to start implementing the projects it has presented in the Budget immediately. All that has been done, so far, is that the Budget has been shown to us and we have analysed it and debated on it. The best thing that remains is for it to be implemented and we will be waiting for this.

I thank you, Mr Speaker.

Mr Chungu (Luanshya): Mr Speaker, thank you for giving me this opportunity to debate the Motion on the Floor as this is my first time to debate this kind of Motion since I am a first-time parliamentarian.

Sir, I would like to congratulate the Minister of Finance and National Planning, Hon. Alexander Chikwanda, for a well-presented Budget. Many hon. Members who have spoken before me have talked about this great son of the soil. He has been the man he is, today, from the past. He is not ashamed to call what is good just that. As such, he commended the former hon. Minister of Finance and National Planning for a job well-done. I am told by the people that were there, in 1974, that he did the same then.

Mr Speaker, those that were in the immediate past government and have spoken before me have been telling us that that this is an MMD Budget and they are very pleased because we have inherited it. I do not see any reason these people, so pleased about their budget, should start contradicting themselves. I can excuse those that were not in the Executive for they did not know what their colleagues had done for the 2012 Budget.

I will move on to the education sector. In the area of education, there is an increment in the budgetary allocation, but I would appeal to the hon. Minister in charge to critically look at the many problems that this sector is facing. I come from Luanshya, which is an urban town, and we still have children who go to school and sit on the floor. This is even after forty-seven years of independence.

The only schools that are in Luanshya are those that were built by the United National Independence Party (UNIP) Government. There has not been any new school built in the last twenty years of the Movement for Multi-party Democracy (MMD) rule. The only new schools that I have in my constituency are community schools, which are manned by untrained teachers who are not even remunerated. I, therefore, expect a fair share of the funds that have been allocated to this sector for my constituency.

Mr Speaker, mining still remains a source of worry for those of us that are coming from the mining towns. After the days of the Zambia Consolidated Copper Mines (ZCCM), the mines have continued to go down on the Copperbelt. The mines’ workforce has gone down. The townships have also been run down. Some of these townships are a sorry site. I would appeal and urge the hon. Minister of Mines and Natural Resources to look at the small-scale mines. This is an area where the country can benefit a lot.

Sir, I will give you an example of Kagem Mining Limited, in Lufwanyama District. There is nothing to show in Lufwanyama that it houses a giant mining company which, early this year, produced the best emerald with the highest number of carats. Just that one piece of stone can change the face of Lufwanyama. However, that has not happened. All we are going to remain with when Kagem Mining Limited closes shop will just be pools and dams of water if we do not move in as the Government so that the country can benefit from this mine.

Mr Speaker, if you paid a visit to Kagem Mines, today, you would find that there are Indians who have taken over jobs from Zambians, as security guards, in spite of our forty-seven years of independence. This is a very shameful thing. We need to do a labour audit at that place. It is the biggest mine with the largest surface area, but it has not invested in equipment because it chooses to hire it.

Mr Speaker, I will move on to the health sector. This is a very important sector as many families across our country are finding it difficult to care for their sick because of the lack of drugs and health facilities. In the town where I am coming from, Luanshya, the Government has never built a hospital there in the forty-seven years of independence. The only hospitals that we have in Luanshya were built by the mining companies. These mines are namely, Roan Hospital, Luanshya Hospital and Thomson Hospital, which was not even meant to be a hospital as it was an aged people’s home and was donated by Mr Jack Thomson in 1957.

If you go to Luanshya, today, you will discover that this hospital is in a dilapidated state. It has no equipment. If one is admitted at Thomson Hospital to be treated for malaria, he/she will be cured of it, but will go out with a cough. We do not even have an incubator or delivery beds and the roofs are leaking at Thomson Hospital. With the increase in the money allocated to the Ministry of Health, I am appealing to the hon. Minister in charge to do something about Thomson Hospital.

Mr Speaker, on the CDF, …

Hon. MMD Members: Hear, hear!

Laughter

Mr Chungu: … as much as we would want the CDF to be increased, we have just been told that this is an MMD Budget. Since we have just inherited a budget that was formulated by the MMD, I am meant to believe that whatever is appearing in it is the making of the previous Government.

Interruptions

Hon. Government Members: Hear, hear!

Mr Chungu: The hon. Members on your left have admitted that it is their Budget.

Mr Speaker, as regards the threshold of K2 million for non-payment of Pay as You Earn (PAYE), I am a very happy person that the economy of my town and constituency, Luanshya, which has about 10,000 workers, will benefit from this. I know that every month that comes after 1st April, each year, my town will benefit an extra K2.5 billion from the economy. This is very good because that money was never there before and it is, therefore, extra money.

Mr Speaker, this is really a listening Government. We know why our friends were voted out of power. It is because they did not listen to the cries of many Zambians. We would not want to make the same mistake, knowing why they were voted out.

Sir, when the President makes a mistake, all these PF parliamentarians that you see here are bold enough to point it out to him.

Hon. Opposition Members: Question! Aah, aah!

Mr Chungu: This is because we do not want to end up with a naked king like our friends did.

Laughter

Mr Chungu: So, hon. Members of the Opposition should not disallow a penalty before it is taken, but give us a chance to implement our policies. We will accept our failures and will not be adamant when we go wrong. Where they advise, we take note of the good advice. Sir, that is why when those people on your left are debating, hon. Members of the Executive take notes of the good points made. They just do not sit there if the House has noticed.

Hon. Opposition Members: Where are they?

Mr Chungu: The Vice-President is there.

Mr Speaker, we shall not take the Zambian people for granted because they put us in office. So, we will just do the right thing.

Mr Speaker, this Government has given back to the chiefs the dignity that they deserve. The Government will never parade chiefs and turn them into party or political cadres. We will respect them and will never allow them to come to the airport like our colleagues did.

Mr Speaker, there are assertions of …

Mr Mweetwa: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Mweetwa: Mr Speaker, thank you very much for allowing me to raise this important point of order. I have noted that, for almost more than ten minutes, the hon. Member on the Floor is debating issues unrelated to the specific Motion we are here to debate. Is he in order, therefore, to continue his cross country debate, leaving the Motion on the Floor of the House?

Hon. Opposition Members: Hear, hear!

Mr Speaker: I note that, occasionally, the hon. Member has made reference to the Budget but, by and large, has been referring to generic issues.

Laughter

Mr Speaker: Granted the nature of the Motion before the House, I would urge him to focus on the Motion as much as possible.

You may continue, hon. Member.

Hon. Opposition Members: Hear, hear! Long live the Chair.

Mr Chungu: Mr Speaker, I thank you for your guidance. There are assertions that this country is being turned into a police State …

Interruptions

Mr Speaker: Order!

Hon. Member, I have just made a point. I made the same point, yesterday, and I would like to reiterate that in order to avoid digressing from the Motion at hand, let us try and focus on the issues in the Budget. I stated, yesterday, that the hon. Minister of Finance and National Planning has made proposals which are subject to debate. If we introduce extraneous matters without let or hindrance, there is a risk of departing from the Motion.

Laughter

Mr Speaker: The anxiety of the Chair is departure from the Motion. If there are specific issues, there are other ways of bringing them such as asking questions and so on and so forth. However, for the time being, the agenda is to discuss the Motion.

Hon. Opposition Members: Hear, hear!

Mr Speaker: That is what is on the Order Paper.

Mr Chungu: Mr Speaker, thank you for your guidance. I was just getting to wind up my debate.

Laughter

Mr Chungu: Mr Speaker, I am appealing to all the hon. Members to support the Budget.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr M. H. Malama: Cikulu namubeba.

Mr Mabumba (Mwense): Mr Speaker, thank you for giving me this opportunity to debate the Budget which was presented by the hon. Minister of Finance and National Planning in this House. Before I debate the Motion on the Floor of this House, I would like to take this opportunity to give my maiden speech which I did not give earlier on.

Mr Speaker, I stand in this House as a representative of the people of Mwense. As you are aware, some of us come from rural constituencies where you see poverty at its best. Therefore, I am a representative of the people of Mwense who are voiceless, under represented and under privileged.

Mr Speaker, from as far back as a decade ago, my aspiration was to passionately represent the people of this country. First and foremost, I am very grateful to the PF which gave me an opportunity to stand on its ticket. For me, it is not regrettable because it adopted a winning candidate.

Mr Speaker, for those that do not know Mwense Constituency in terms of location, it is 100 km from Mansa, which is the provincial headquarters of the Luapula Province. Mwense Constituency produced the Second Republican President of this country, the late Dr Chiluba, may his soul rest in peace.

Hon. Members: Hear, hear!

Mr Mabumba: Mr Speaker, having said that, for those who knew the late President, I think they can agree with me that he brought political modernisation in this country when he introduced multi-partism. I, therefore, pay great tribute to him.

Hon. Government Members: Hear, hear!

Mr Mabumba: Mr Speaker, politics in Mwense Constituency are a little challenging. It is also important for me to thank the PF Executive Committee, the provincial leadership for the Luapula Province, the District Executive and the Constituency Executive for adopting me as parliamentary candidate.

Mr Speaker, let me also take this opportunity to thank my wife, Vivien, my children, David, Faithwell and Leon for giving me the support during the campaign even before the adoption.

Hon. Government Members: Hear, hear!

Mr Mabumba: Mr Speaker, let me also take this opportunity to congratulate you on your election to that position. Evidently, between those who were competing for that position, you were the one qualified for it.

Hon. Government Members: Hear, hear!

Mr Mabumba: Mr Speaker, let me also take this opportunity to congratulate the hon. Deputy Speaker and the hon. Deputy Chairperson of Committees of the Whole House on ascending to their positions.

Mr Speaker, during the campaign, I never had materials and finances to give the people of Mwense Constituency, but they still supported me. The only thing they had on 20th September, 2011 was a simple voter’s card and it was that voter’s card which they used to bring me to this House.

Mr Speaker, the former Member of Parliament, Mr Chongo, who stood on the MMD ticket, had all the money and materials, but the people of Mwense Constituency resolved not to vote for the MMD just like they did, in 2006, when they voted for Hon. Chongo. 

Hon. Government Members: Hear, hear!

Mr Mabumba: Mr Speaker, before I touch on other issues, let me also take this opportunity to say one thing. I do not think there is any person in this House who can disagree with me that this country has, for the first time, elected the most experienced politician by the name of His Excellency the President, Mr Michael Chilufya Sata, notwithstanding the contributions that Dr Kaunda made to this country.

Hon. Government Members: Hear, hear!

Mr Mabumba: Mr Speaker, I do not think anybody would disagree with me on that point.

Hon. Government Member: Walicenjela, iwe, ai?

Mr Mabumba: Mr Speaker, in the past, we saw how the media was used to demean and damage the reputation of the President. Therefore, I would also like to take this opportunity to congratulate Hon. Shikapwasha who apologised on the Floor of this House.

Hon. Government Members: Hear, hear!

Mr Mabumba: Mr Speaker, as Zambians, when we are in national positions and make mistakes, we need to search our hearts and apologise to the people of Zambia the way Hon. Shikapwasha did. Therefore, Hon. Shikapwasha, I thank you passionately for what you did.

Hon. Government Members: Hear, hear!

Mr Mabumba: Mr Speaker, I expected people who were closer to the authorities and contributed to the damage of this country to also apologise to the people of Zambia. However, I have never seen them do that on the Floor of this House. What are they waiting for? Why are they not following the steps of Hon. Shikapwasha? We are not here for jokes.

Mr Speaker, one politician, in Europe, said …

Interruptions

Mr Speaker: Order!

Mr Mabumba: … politics is not a game because it can change the life of a person. As a nation, we need to correct ourselves and apologise where we know that we misled the Zambian people the way Hon. Shikapwasha did.

Mr Speaker, as politicians, we find it easy to make political pledges during campaigns. Speaking for myself, I made a commitment to the people of Mwense Constituency, who voted for me, that I want to be the first hon. Member of Parliament to sign a social agreement with them on what I am going to do for them in the next five years, God willing.

Interruptions

Mr Mabumba: Mr Speaker, people can heckle or do whatever they want to do …

Interruptions

Mr Speaker: Order!

 That is his preference.

Mr Mabumba: Mr Speaker, thank you for your protection. Indeed, that is my preference.

Sir, the job of a politician is not well-defined. Therefore, as hon. Members of Parliament, most of us find that we have not done anything for our people at the end of the five years despite the CDF being given to us. I, therefore, want to make a commitment to my people that I am going to fulfill my promises and I have no regrets about saying that.

Mr Speaker, having said that, I want to move on to the oppressive nature of the elections that we have had in this country and state that they are not anything that we, as Zambians, would like to go back to. It is gratifying that the PF Government has made a commitment to reform the way elections are conducted in this country. We need to conduct elections, taking into account the integrity of people and not where you start damaging the integrity of individuals.

Mr Speaker, at the moment, in Mwense Constituency, there is no clean water and proper sanitation at the district hospital. When a person falls sick, he/she has to be taken to Mansa, which is 100 km away. If a patient goes to a rural health centre, he/she will be told that there are no drugs and cannot be admitted because there is no linen.

Mr Speaker, during the September campaigns, I visited a health centre which is within the Boma, I found that the MMD Government had their chitenge flags hanging on trees all over when hospitals had no drugs and linen.

Mr Speaker, when it is time for women who are pregnant to deliver, they are asked to carry with them tablets of soap and jik. Should we be happy about such things as a country?

Hon. Government Member: No!

Mr Mabumba: Mr Speaker, we need to change the direction of this country.

Mr Speaker, coming to agriculture, Mwense is a rural constituency, but if you look at the way agriculture inputs were distributed, it was so politicised that some intended beneficiaries ended up not getting anything. I, therefore, wish to state that the economic and social challenges in Mwense Constituency are not insurmountable. What I have said about my constituency in comparison with what my colleagues said about their constituencies tallies because they too do not have clean water and feeder roads. Even the main roads such as Mansa/Kashikishi are completely damaged. Meanwhile, the MMD contracted one of its party cadres to repair it, but he never did anything. Is that a country that we should be proud of living in? I do not think so.

Mr Speaker, coming to the Budget Speech, first of all, I want to take this opportunity to thank the hon. Minister of Finance and National Planning. I am very happy because he is from the Kaunda Regime.

Hon. Government Members: Hear, hear!

Mr Mabumba: When we look at the country, today, we note that the UNIP Government did so many things which the MMD Government failed to do. Instead, it destroyed this country. It is against this background that His Excellency the President, Mr Sata, had to search for a man of integrity to provide financial leadership to this country.

Mr Speaker, I also want to thank the unions and civic organisations that have commended the hon. Minister of Finance and National Planning for the Budget presentation.

Mr Speaker, going into specifics of the agricultural sector, for instance, I will not go into the details of whether the allocation is enough or not, but that I have seen that money has been allocated to this sector. This is continuity which one hon. Member talked about in the sense that, during campaigns, the MMD Government was telling people that if they voted for the PF, the FISP and crop purchasing would be discontinued. However, as PF, we campaigned using our manifesto. This can be evidenced by the presentation that the President made to this House. The Budget that was presented by the hon. Minister of Finance and National Planning was anchored on the President’s Speech in the sense that we will continue with the FISP and buying the crop from the farmers.

What is important, though, is that we recognise the structural challenges in the agriculture sector. Like other people have said, there are no roads and storage facilities and this has led to late delivery of inputs. The farmers and transporters are not paid in good time. What sort of government was the MMD which never paid attention to the farmers and transporters?

Mr Speaker, as the hon. Minister stated, there shall be continuity and, in the years to come, there will be some structural reviews so as not to promote mono crop production. For example, with regard to maize, they are saying that there is a bumper harvest, but if you go to my constituency as well as other rural constituencies, there is no evidence of the talked-about bumper harvest. Maybe, it is in other sectors. The amount of taxpayers’ money that is spent on crop marketing is too huge and it needs to be reviewed.

Mr Speaker, if you go to countries such as Tanzania and other African countries, you will not find this much money spent on one crop. I, therefore, implore the hon. Minister to diversify so that agriculture can provide employment and contribute to wealth creation in this country.

Mr Speaker, I also concur with what Hon. Zimba said. If you look at the agriculture sector in this country, co-operatives are not given the emphasis they are supposed to be given. I, therefore, want to request the hon. Minister of Agriculture and Livestock to regard co-operatives as an engine that can help create wealth in our constituencies and the nation at large.

In the past, the Zambia Co-operative Federation (ZCF) played an important role in this country. Therefore, why do we not revitalise the ZCF with a view to making it an engine for wealth creation like I said earlier?

Mr Speaker, the economic and social sectors of this country and the debates of the hon. Members of Parliament attest to the fact that this country has been mismanaged over the past twenty years. In some parts of the country, people do not have clean water, proper roads and hospitals. Where are we going as a nation?

Mr Speaker, as much as our colleagues want to be praised for the good things they did for this nation, for me, I only give them credit for the transport sector. When the United Bus Company of Zambia (UBZ) went under receivership, everybody wondered where we were going. However, the MMD Government managed to liberalise the economy and we no longer have transport problems in this country. We give them credit for the transport sector in this country because it is doing fine. I do not regret giving them credit. Unfortunately, our colleagues want to take credit even where it is not due. I do not even know how to describe the situation in the rural areas. If you look at the provision in the Budget for social and economic sectors, you will notice significant amounts of money are going towards the development of hospitals, roads and technical colleges.

Mr Speaker, like our colleagues have been saying, the PF Government campaigned on its manifesto and the President said the same during his speech to the House. The Budget Speech also provides for the construction of roads as stated by the President in this august House.

Mr Speaker, if this money is going to be invested into roads, hospitals and water reticulation, I am sure we are going to create employment. As a result, there will be disposable income in our rural constituencies and everywhere else in this country. It is only through these economic sectors that we will be able to reduce the poverty which our colleagues in rural constituencies are facing.

Mr Speaker, it is regrettable to hear an hon. Member of Parliament saying that there is no poverty in this country. Please, hon. Members, let us be passionate. For those of our colleagues who are living in poverty, it is not their wish to find themselves in such situations. When we are in this House, let us bear in mind that there are Zambians out there whom we represent. Therefore, let us not mislead the nation. It is very regrettable that an hon. Member of Parliament, who was even an hon. Minister, can debate in that matter. It is unfortunate.

Mr Speaker, through you, hon. Minister of Finance and National Planning, this money that has been allocated to the social and economic sectors should be used for wealth creation for this country. Every nation is developed through investment in these sectors.

Mr Speaker, let me talk about social protection. Many of our retirees in this country are not paid in good time. The allocation of K4 billion plus, like the other hon. Member said, is insufficient. However, I advise the ministries concerned to realise that what is important, in this country, is to restructure legislation that governs pensions. This is the only way there can be prudent financial management in these pension schemes. Most of the pension schemes are so indebted that they cannot pay retirees when they retire. The lack of funding in this sector makes it prone to corruption because a person has to bribe somebody before he is paid his pension. 

Mr Speaker, on taxation, the hon. Minister, within the shortest possible time that he had to deliver the Budget to the House, looked at the most important aspects that needed to be addressed. The restructuring of PAYE is going to provide K1 million as additional income to our economy.

Mr M. H. Malama: Hear, hear!

Mr Mabumba: Why do we not commend the hon. Minister for that measure? If you look at a teacher or nurse in a rural constituency, K1 million of disposable income is enough for him/her to buy a television set, bicycle or mattress. Therefore, we need to commend the hon. Minister for this measure.

Hon. PF Members: Hear, hear!

Mr Mabumba: Mr Speaker, on the mining sector, in this country, there have been significant debates on whether or not the mines are contributing enough money to this country. It is debatable whether it is true or not. However, the measures that the hon. Minister has brought to this House clearly indicate that it is to provide assurance to the Zambian people that we can engineer our tax administration in this country with a view that the mining sector starts contributing to the economic dispensation of this country. The mineral royalty tax from 3 per cent to 6 per cent is a lot of money that will go into the economic sector of this country. The Import Value Added Tax (VAT) Deferment Scheme on copper, cobalt ores and concentrates that has been removed is going to contribute a lot of money to the social and economic development of this country.

Mr Speaker, export duty on copper has been harmonised so that duty can be paid on other minerals as well. This is an indication that our mining taxation has been engineered on the premise that the mines have to contribute to this country.

In conclusion, let me say that this country will only develop if we have a unified approach or shared vision. Let us rebrand ourselves as new politicians and forget the mistakes that have been made. Our colleagues made mistakes, but let the PF learn from them so that we can deliver the social and economic agenda for this country and turn round the socio-economic fortunes of this country. God bless Zambia.

With these few remarks, I thank you, Sir.

Hon. PF Members: Hear, hear!

Ms Kalima (Kasenengwa): Mr Speaker, I thank you and my God for allowing me to contribute to the debate on the Budget Speech presented to this House by the hon. Minister of Finance and National Planning. I salute him for the wonderful presentation and I am humbled that this Budget was presented by a gallant man who was Minister of Finance and National Planning before or just about the time I was born. It shows his professionalism, hence the reason, I believe, His Excellency the President, Mr Sata, fell back on him despite the age and regardless of the availability of young people and that times have to change now. Hon. Chikwanda, I congratulate you.

Hon. Members: Hear, hear!

Ms Kalima: Mr Speaker, on the Budget, I have questions and difficulties on the priorities of the PF Government. The pronouncements seem to differ from its action. There are priorities of putting more money in people’s pockets, bridging the gap between the rich or poor and the haves or have-nots. There are many priorities through this Budget, but I am convinced that this is to secure their victory in 2016. As a confirmation, we have seen the quick formation of the Ministry of Chiefs and Traditional Affairs whose role is vague. Secondly, we have seen the increase of perks for chiefs and Paramount Chiefs, including my own Paramount Chief, Chief Mpezeni, from K1.5 million to K4.5 million and for other chiefs from K1.2 million to K4.2 million. We have seen the pronouncements on the renovations of the chiefs’ palaces and the latest is the purchase of tractors for chiefs for their subjects to hire. Will the chiefs collect money on behalf of the PF Government from people that do not have money? I bring to this House the voices of the headmen in Kasenengwa and the headmen at large. I wonder why the headmen, who are the custodians of the people, who are the have-nots, were left out in the national cake as though they are not Zambians. Again, it is a lack of being in touch with the reality of the grassroots that caused this.

Interruptions

Mr Speaker: Order! 

As the hon. Member proceeds, she should bear in mind the ruling I made earlier about focusing on the Motion. I do not like to repeat myself.

You may continue.

Ms Kalima: Mr Speaker, the points I am putting across are in relation to the Budget. The increase of chiefs’ perks is in the Budget. Again, it is a lack of being in touch with the reality of the grassroots that caused this. I believe if the PF Government really did interact with the grassroots, it would have known that the headmen are as equally important as the chiefs.

Hon. Opposition Members: Hear, hear!

Ms Kalima: The PF would have known that the headmen also are custodians of the people and deserve some money since the chiefs have been made a priority.

Secondly, I believe this will just widen the gap between the poor and rich, considering that the chiefs already have something. I know that it is very important and I support it, but I believe the headmen should also have a share in this cake. This voice that I bring to this House is not my own. I represent the people of Kasenengwa and I am speaking on their behalf. They want to know what is happening. Why have they been left out in the Budget?

Mr Speaker: Order!

I think we have a system which amplifies voices ...

Laughter

Mr Speaker: Please, try and position yourself in such a manner that you are audible, but also maintain your audience.

You may continue.

Ms Kalima: Mr Speaker, the Government is trying to widen the gap between the rich and the poor and create enmity at village level. I am sure that if Hon. Bweupe, Hon. Chitotela, Hon. Mwewa and Hon. Malama for Mfuwe, who represent rural constituencies, were consulted, they would have advised that the headmen be included. I would be failing in my duty if I did not demand that the headmen be included. Bad advice and a lack of consultation will cost the PF a victory in 2016 if it continues on this path. Already, we have seen so many reversals as a result of poor consultation.

Mr Speaker, secondly, the issue of job creation was said to be a PF priority. However, this Budget does not address job creation although it tries to address skills training through the Zambia National Service (ZNS), a programme initiated by the MMD.

Hon. MMD Members: Hear, hear!

Ms Kalima: Mr Speaker, the Zambian population is growing at the rate of 2.8 per cent with 52 per cent expected to be between the ages of fifteen and sixty-four years by 2015. This translates into 8 million people. Most of these are the youth who need employment. To address this call, we need proper planning of resource allocation and investment. This can be achieved through the growth of the private sector, mainly the small and medium enterprises (SMEs).

I, therefore, expected the Government to engage with banks, such as the Standard Chartered Bank, to learn how best to help create jobs through the SME initiative.

Hon. Opposition Members: Quality!

Ms Kalima: Mr Speaker, the Standard Chartered Bank is a pioneer and an expert in this field. The Government should not only have engaged the banks on the reduction of lending rates, but also on issues of job creation. Let me hasten to add that the reduction of lending rates is good and I am a beneficiary. I run a firm and have running loans and, therefore, will benefit immensely. However, the reduction in lending rates will only benefit a countable number of Zambians as most Zambians lack collateral as was stated by the hon. Member for Kalabo Central. The Government should speak more of guarantees to act as a bridge between the bank and individuals intending to do business. The growth of business will contribute to the creation of jobs.

For example, if we promote five SMEs and four of them fail, at least, one of those will succeed and we would have created five jobs. In five years, we would have created, at least, twenty-five jobs. We should concentrate on SMEs in order to encompass this population which is growing at the rate of 2.8 per cent.

Hon. Opposition Members: Hammer!  

Ms Kalima: Mr Speaker, I would like to speak on agriculture. Agriculture is key to the growth of our economy and is the only benefit to the rural Zambians. This benefit is through the Farmer Input Support Programme (FISP). In contrast, the people in the urban areas benefit from many other different programmes. The FISP is a programme that was started by the MMD and has seen Zambia become a middle-income country. It has contributed to the reduction of the inflation rate to a single digit. It has also helped the stabilisation of the exchange rate below K5,000, although we have now seen it escalating to K5,100 in the sixty days of the PF in office.

Hon. Opposition Members: Hear, hear!{mospagebreak}

Ms Kalima: Mr Speaker, my heart bleeds to learn that there is a reduction in the support to the farmer despite the fact that the MMD budgeted for a lima pack consisting of two D-Compound fertiliser, two Urea fertiliser and a 10 kg bag of seed for the farmer. My farmers in Kasenengwa have been calling me to ask me what is going on as they are now receiving 1x 50 Kg of D-Compound and 1 x 50 Kg of Urea. I thought this was as per the 2011 Budget by the MMD Government. What has happened? Why is this pack being reduced to only half a lima pack when the MMD had already budgeted for one lima? Whenever the Government thinks of cutting down on costs in the Budget, the rural people are always the victims.

Hon. Opposition Members: Hear, hear!

Ms Kalima: I am surprised that even before the PF Government could study the FISP, the Government had plans to reduce the support in this years’ Budget. I wanted to know what the Government was going to do with the FISP and had an opportunity to speak to the hon. Minister of Agriculture and Livestock at length who explained to me what I wanted to know.
 
Hon. Kapata, yesterday, spoke about a programme which is already operational, at the moment, through the Food and Agriculture Organisation (FAO) and the Commercial Farmers’ Union (CFU), a programme that we are using under the voucher system. The hon. Minister of Agriculture and Livestock also spoke to me about a different programme. However, it is important to look at the FISP. This is the only programme that the rural Zambians have. It can either break or build the PF. Therefore, I urge you to look at this programme and study it at length before you can think of either reducing it or increasing the inputs.

Hon. Member: Hanjika!

Ms Kalima: Mr Speaker, there are so many other things that can be reduced. We can reduce on the commissions of inquiry, for example.

Hon. Opposition Members: Hear, hear!

Ms Kalima: Mr Speaker, the President has already pronounced the renovations of airports throughout the country. I wonder what benefit it will bring to rural Zambians. It is, probably, only the President and the hon. Ministers who will be able to fly into Mbala, Chipata and all the other areas. However, not even they will fly all the time because, most likely, this will only be feasible in 2016.

Mr Speaker, my appeal is for us to ignore plans for the rehabilitation of airports and redirect the funds to other needy areas such as the FISP and road construction. The people in the rural areas are the least considered. There are so many things that the rural people would want to benefit from.

Hon. Member: Tetwakwangalilako utu.

Ms Kalima: Mr Speaker, basically, the Budget is good and we can benefit from it. However, we have to redirect some of the resources from areas which, according to me, are neither priorities nor necessities. A good example of such is the programme to reconstruct airports.

Interruptions

Ms Kalima: It is true, Hon. Malama, through the Chair, and that was spoken about.

Interruptions

 Ms Kalima: Mr Speaker, I just wanted to emphasise the importance of the rural people because, to me, this Budget does not seem to address the plight of the rural person. It is not pro-poor, but for the rich.

Hon. Opposition Members: Hear, hear!

Ms Kalima: This Budget aims at moving the person that already has to an even higher level and the one that has not to just look on and say we are now in the PF Government. Let us consider the have-nots.

Hon. Opposition Members: Hear, hear!

Ms Kalima: For me, the people in Kasenengwa are a priority. When we budget, let us not do it based on Lusaka or up to the provincial towns. Let us go to the ward and branch levels. Let us understand this.

Hon. Opposition Members: Hear, hear!

Ms Kalima: Mr Speaker, when you talk to planners, you will discover that they only end at provincial level. I, therefore, emphasise and demand that we look at the poor people and those in the rural areas and prioritise their needs.

Mr Speaker, I thank you.

Hon. Opposition Members: Hear, hear!

Mr Pande (Kasempa): Mr Speaker, I thank you for the opportunity to debate the Motion on the Floor. I would like to congratulate the hon. Minister of Finance and National Planning for the several accolades that he has received nearly from each and every hon. Member who has spoken before me. He rightly deserves them.

Mr Speaker, the hon. Minister has been very magnanimous in presenting the Budget honestly. He has honestly acknowledged the performance of his predecessor as well as the strong foundation that was left by the MMD Government.

Sir, one of the hon. Members indicated that it is tradition for Ministers of Finance and National Planning to praise predecessors, but it is actually not. The hon. Minister, Dr Alexander Chikwanda, means well and he meant what he said. He has identified the good work that Hon. Dr Musokotwane and his Government did.

Mr Speaker, the foundation left by the MMD is very strong. We, therefore, expect the PF Government to build on it.

Hon. MMD Members: Hear, hear!

Mr Pande: Sir, the hon. Minister has also acknowledged the fact that the MMD Government achieved and sustained a single-digit inflation rate. On this one, I would like to implore the hon. Minister to work hard to maintain it so that, if it remains at that level, maybe, even for five years, we could be looking at debasing our currency. We can knock off the zeros, which cannot be done in high-inflation circumstances. Ghana is one country that has done it successfully. I see this country going in that direction if we work hard, together with the officials at the Bank of Zambia, to maintain the single-digit inflation.

Hon. MMD Members: Hear, hear!

Mr Pande: Mr Speaker, on borrowing, when some of our colleagues on your right were in the Opposition, they used to criticise us when we talked about borrowing for projects.

Mr Mukanga laughed.

Mr Pande: I can see Hon. Yamfwa Mukanga laughing because he is one of the culprits.

Hon. Opposition Members: Hear, hear!

Mr Pande: Mr Speaker, the hon. Minister has honestly identified that …

Mr Speaker: Order!

I do not think it is appropriate for the hon. Member to refer to whoever a culprit. It is inappropriate to refer to an hon. Member as a culprit for having held a certain view. As much as you may be at liberty to identify him/her, certainly, the word ‘culprit’ is inappropriate. May the hon. Member withdraw that word.

Mr Pande: Mr Speaker, I withdraw that word and replace it with, ‘ he was a supporter of the idea of not supporting borrowing’.

Sir, the PF Government, through the hon. Minister, indicates that it will also consider the borrowing of non-concessional loans for projects with high economic and social returns. This is an honest reality. I, however, would like to caution that borrowing, as we had planned in the MMD, must be within sustainable limits.

At one time, the external support to the Budget was about 45 per cent. However, at the time the MMD was leaving office, it was less than 20 per cent. In this year’s Budget, it has gone to 23 per cent. It is my hope that this trend will not be continued. Ideally, we should be trying to reduce dependence on external borrowing. Like one hon. Member had earlier indicated, external borrowing is not always reliable. You can be let down at the time when you most require that money. Of course, we still need assistance and appreciate our co-operating partners.

Sir, we attained the ‘B plus’ credit rating but, again, our colleagues did not believe it. Now, the hon. Minister has actually acknowledged that this will help the country. It has opened up the opportunity for Zambia to diversify the areas of external financing. Therefore, for those who doubted the ‘B plus’ rating, it is real.

Mr Speaker, although the hon. Minister has identified the high rate of unemployment and, particularly among the youths whom they were promised to, there are, unfortunately, no clear measures in the Budget intended to create jobs for them.

Sir, I was looking at a situation in which we could have seen more resources go to programmes for youths, such as the Kalingalinga Metal Fabricators. We should plan to bring them together and create more jobs. We should plan for the youths in Garden Compound, who are making door and window frames, and see how we can bring them together to create more organised jobs for them.

Sir, the hon. Minister, in Paragraph 38, tries to address this by saying that it will be done through the diversification in the agricultural sector. However, when you scruitnise what has been allocated to agriculture, there is only research. We do not expect any new jobs from research because researchers are already there. I had hoped that there could have been some money going to manufacturing. However, we have not targeted any industry that would generate jobs. Is it the textile or bottling industry? This has not been made clear. It clearly means that there is no provision for job creation.

Sir, as regards interest rates, there is euphoria that we have reduced interest rates. Nevertheless, the hon. Minister knows, as much as I do, that when the banks reduce interest rates to 15 per cent, what we should understand is that those are merely base rates. When you ask for money, they will load in the administration and risk. This means that you are not getting that money at 15 per cent. Depending on how you have behaved in the past, you could easily get that money at 19 or 20 per cent.

Mr Speaker, someone on your right said that interest rates will continue going down until they are at 5 per cent. However, what we should know is that this goes hand and glove with the inflation rate. If the inflation rate is at 8 or 9 per cent, you cannot expect interest rates to be at 5 per cent. Until we fight and house inflation at 5 per cent, we should not expect interest rates to continue going down.

Mr Speaker, I have also noticed that we have not done much to broaden the tax base in this Budget. I would have loved the hon. Minister to do better than he has done. The only area that he has touched is the issue of 15 per cent tax on commissions paid to non-residents. I think that is a new element by which he is trying to broaden the tax base. I would have loved a situation where the tax base was broadened so that other tax bands under PAYE could also have been reduced. In this particular Budget, they are static and, therefore, some people will not have more money in their pockets like the others who have benefited.

Mr Speaker, I would like to now deliver a message from Kasempa to the hon. Minister. The people appreciate the fact that you have included the Kasempa/Kaoma Road on feasibility studies, but they would have loved the inclusion of another critical road, the Kasempa/Mumbwa Road.

Lieutenant-General Shikapwasha: Hear, hear!

Mr Pande: That is the gateway to North-Western Province. It is not there and I believe it is something that can be looked at because it has economic value. The other road is the Lufwanyama/Kasempa. Once these roads are done, the pressure on the Chingola/Solwezi Road will be reduced. Some motorists will be using the Kalulushi/Kasempa Road while others will be using the Kasempa/Mumbwa Road.

The other message is that the people expect a district hospital to be built in Kasempa, this year, as was planned. I have no doubt that this will be done.

Sir, on the CDF, many have already spoken and, knowing you, you have taken note. I am not going to put any figure, but I believe that you have understood and you will do something.

Mr Speaker, the other message is from the people of the North-Western Province. They have noted that they have been totally left out of the Cabinet. They, however, believe that this is a prerogative of the President, but they do not look forward to being left out of the economic development of the country, particularly, realising that a large chunk of the mineral royalty tax will come from their province.

Hon. Opposition Members: hear, hear!

Mr Pande: Mr Speaker, one of the projects that they would want to see is the construction of a university. They cannot understand why one district could have two universities. Lusaka is going to have three public universities while there are other provinces where there are no universities. I know President Michael Sata will agree that we need to have universities in those provinces that have none currently.

Mr Speaker, the other message from the North-Western that goes to the PF Government is for it not to destroy what the MMD has left behind. The hon. Minister of Finance and National Planning has already acknowledged the strong foundation that has been left by the MMD.

Hon. MMD Members: Hear, hear!

Mr Pande: You should work hard to build on what has been left so that we also praise you when we come back in 2016. It is very clear that we are coming back.

Hon. MMD Members: Hear, hear!

Mr Pande: There is no doubt that we are coming back.

Mr Chilangwa: Ichiloto ububi!

Laughter

Mr Pande: We wish to encourage you to work hard. When we do so, it is for the benefit of all Zambians. I would advise the hecklers to be paying attention because the advice that is coming from here is for the benefit of the country at large. I have noticed that serious hon. Ministers have been taking notes when some of my colleagues have been speaking. Those who are not serious have been heckling.

Interruptions

Mr Pande: Yes, I can see one hon. Minister there is taking notes and that is what we would want to see. Please, do not destroy what the MMD left.

I thank you, Mr Speaker.

Hon. MMD Members: Hear, hear!

The Deputy Minister of Local Government, Housing, Early Education and Environmental Protection (Mrs Banda): Mr Speaker, having gone through the Budget, I take this opportunity to place before this august House the need for effective and efficient service delivery systems at the local government level. As you may be aware, the performance of the local government has been very poor considering the important role that local authorities need to play in national development. The hon. Minister of Finance and National Planning has committed K257 billion to the local government sector. We can confidently say that we can build a system that is able to respond and adapt to changing circumstances. To this effect, I can say that all local authorities can deliver social service to all households, including informal settlements although at varying levels.

Mr Speaker, the 2012 period will mark a positive sign of increased levels of community participation in the governance of our councils. This was not the case under the MMD Government. As councils, we were heavily used as vessels of political survival by parties.

Hon. Government Members: Hear, hear!

Mrs Banda: Sir, in the 2012 Budget, Zambia will witness a drastic improvement in the accountability of its councils to the public, especially on service delivery and financial management. From the start of our term as the PF Government, we are committed to fostering a local government system that is transformed, well-capacitated, stable, accountable and transparent. We are also promoting greater community participation, generally, which is viable and sustainable, to speed up access to basic services. In this light, the PF Government is committed to the creation of an oversight structure to ensure that both the administration and councillors are held accountable in their delivery of services to the communities. It is of paramount importance that we continue with the right things so that we can build a proud, united and self-respecting nation. Our actions, today, should be such that they not only benefit the present, but also honour the past and benefit future generations.

Mr Speaker, our Government has set clear targets on the acceleration of service delivery to citizens and these targets speak to the core and key deliverables that the PF seeks to achieve during its first term of office.

Mr Speaker, the Government has prioritised local government and housing as everyone’s business after we all came to agree that this sphere was in distress during the MMD regime. We affirm our commitment to the implementation of the Local Government Turning around Strategy. The main areas of focus are the status on the provision of basic services, such as water, sanitation and housing development.

Today, we need councillors and hon. Members of Parliament who respect and dignify our communities. We need men and women who are prepared to humbly service the people and comply with legislation governing local government without negotiations. We need councillors who can resist the temptation to interfere in the awarding of tenders and contracts, especially those involving the utilisation of the CDF.  I would also like to argue that there is no need to increase the CDF from K720 million to K5 billion per constituency.

Hon. Opposition Members: Question!

Ms Kapata: Hear, hear!

Mrs Banda: First and foremost, there is a need to clearly define the development agenda and performance index of the CDF if any increment is to be effected.

Hon. Government Members: Hear, hear!

Mrs Banda: Mr Speaker, I wish to state that if we were to follow expenditure allocation patterns in the local government system, we would find out that Zambia’s performance allocation to the sector has been poor when compared with other countries in the region. Under the MMD Government, about 3 per cent of the government’s revenue, as a proportion of the total National Budget, was spent at local government level. There is a need, therefore, to provide more resources to local government as it is closer to the people, whom all hon. Members of Parliament represent in this House.

Mr Chisala: Hear, hear!

Mrs Banda: If we are serious, as a nation, to improve the social service delivery system, the CDF is not the best option as the utilisation and management of these funds has been problematic since inception.

Interruptions

Mrs Banda: However, there are concerns raised that public resources are not maximised if they are expended on thousands of small diverse projects, which fail to move the country together towards common goals. When the total envelope available to the CDF is relatively small, this is less of a concern, but where political pressures are expanding the slice of the National Budget, which is spent on the CDF, projects the danger increases that a sizeable amount of public funds will be spent on projects which ultimately do not have a long-term impact.

Sir, I want to argue that the CDF is …

Mr Ntundu: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Ntundu: Mr Speaker, I rise on a very serious point of order against the hon. Member debating. Is the hon. Member debating, who is now a hon. Minister, in order to contradict herself, and yet when she was sitting on the left side of the House, she was in the forefront urging the MMD Government, then, to increase the CDF? I need your serious ruling.

Hon. Opposition Members: Hear, hear!

Laughter

Mr Speaker: Order!

My ruling is that as you continue debating, hon. Minister, take into account that point and see if you can address it.

Laughter

Hon. Government Members: Hear, hear!

Mr Speaker: You may continue.

Mrs Banda: I want to argue that the CDF is most often easily spent on short-term projects which benefit a small number of residents. The larger struggle for the CDF development fund is to identify relevant and viable projects which have long-term value. Many constituencies have been unable to account for these funds resulting into loss of public funds.

Hon. Government Member: Hear, hear!

Mrs Banda: The CDF in, its current form, will not do the nation any good even if it was to increase to K5 billion.

Hon. Opposition Members: Aah!

Ms Lubezhi: Question!

Ms Kapata: Hear, hear!

Mrs Banda: The current CDF guidelines of 2006 are too weak in enforcing its provision as a legal mandate of the institution administering the CDF is questionable. A co-ordinating mechanism at local level is required to monitor and streamline the multiple sources of funding flowing to grass root level.

Sir, in some cases, the CDF might be used to contribute to the budget of an existing project for which there are insufficient funds available. There is a need, therefore, to enact a Constituency Development Fund (CDF) Act to deter any further abuse of the public funds. This Act should provide the basis on which the CDF should be allocated to constituencies and some of the variables that could be considered are: the size of the constituencies; the population and the poverty levels.

Hon. Government Member: Hear, hear!

Mrs Banda: The current form where the CDF is allocated equally across the constituencies is not fair and lacks equity in the distribution.

Interruptions

Mr Mbewe: Yes!

Mrs Banda: Our constituencies vary in terms of population and size, …

Mr Mbewe: Ema ministers aya!

Mrs Banda: … therefore, the equal sharing mechanism is not the best model. Hence, there is a need to introduce a formula on the allocation of the CDF.

Mr Speaker, the formula should take into consideration the above variables which are to see realistic development being achieved. It is, therefore, critical that densely populated districts with high poverty indices should be able to receive more funds than less populated districts with fewer people living in poverty.

Sir, the projects to be funded under the CDF are in some cases duplicated as, in some cases, line ministries are also doing the same projects. I am of the considered view that the CDF should be merged with the capital grant and the local authorities should have two windows of accessibility.

The community and district should be allowed to access these funds based on harmonised project proposals and projects that are in line with the national plans. This will help to maximise the impact of resource utilisation. Each constituency should prioritise its projects in a coherent strategy which is linked to national goals and as a medium-term framework of about more years. For example, in Jamaica, a reform was introduced to address this same issue. Each hon. Member of Parliament is required to submit a five-year development plan, developed within the context of national priorities, for his/her constituency. While this reform promotes long-term planning, it increases the similarity between the CDF project and the government’s regular development programme.

I thank you, Mr Speaker.

Hon. Government Member: Hear, hear!

Mr Chilangwa (Kawambwa): Mr Speaker, first and foremost, I would like to congratulate the hon. Minister of Finance and National Planning, for a well-crafted and well-presented Estimates of Revenue and Expenditure for 2012.

Sir, the theme of the 2012 Budget is, “Making Zambia a better place for all.” Indeed, that is how it should be. Zambia must be a better place for all. As we have noted from the speech, the PF Government is determined and is prioritising job creation and addressing youth unemployment. This is how it should be because we are drawing lessons from the past. The people of the Luapula Province, Kawambwa in particular, have been denied this opportunity.

Sir, when the MMD took over the government twenty years ago, Luapula had flourishing industries. We had Mansa Batteries, Lakes Fisheries of Zambia, Mununshi Banana Scheme, Luapula Co-operative Union and Kawambwa Tea Company. These industries had  a combined work force of over 5,000 people …

Mr Ngonga: Balyonaula!

Mr Chilangwa: … with other supportive industries with over 10,000 people. Mr Speaker, all those jobs have gone with the wind. They have gone with the MMD. All those companies have closed. Kawambwa Tea Company is on a death bed as we speak now.

Hon. Government Members: Hear, hear!

Mr Chilangwa: This is what the PF Government is addressing through this Budget.

Mr Speaker, the people of the Luapula Province have been longing for this to happen for a long time. Now, it has come to pass. With this Budget, the people of the Luapula Province are confident that fortunes are going to be reversed in their favour.

Mr Ngonga: Hear, hear!

Mr Chilangwa: Sir, it is worth noting that the PF Government is placing special emphasis on the development of electrical energy. This is welcome and we also note that substantial amounts of money have been set side in the 2012 Budget for the development of the Kafue Gorge Lower Power Project. That is welcome, but I urge the hon. Minister of Finance to, please, go a step further and develop power projects in the Luapula Province, which has very little power to write home about. The only power station that we have in the Luapula Province is the Musonda Falls Power Plant, with an installed capacity of five kilowatts and even that is, actually, limping as it is now working at three kilowatts.

Mr Speaker, we need enough energy to run the industries in Luapula. We need the Musonda Falls Power Plant to be upgraded to at least have a capacity of ten kilowatts. We also need Kalungwishi Hydro Power Station to be developed.

Hon. Government Members: Hear, hear!

Mr Chilangwa: Sir, Kalungwishi River has substantial potential for the development of a big power plant. Unfortunately, in the past, those on your left who were in the Government, the MMD, gave a concession for the development of Kalungwishi Hydro-Power Station to a milling company.

Mr Ngonga: Alale, alale, alale!

Mr Chilangwa: However, nothing has happened for the last five years. I am very sure that this listening Government will cancel this concession so that it can be given to people who can develop this power station and provide the people of the Luapula Province with adequate power.

Mr Ngonga: Hear, hear!

Mr Chilangwa: Mr Speaker, with power, the sky will be the limit in the development of Luapula. We will be able to develop or redevelop Mansa Batteries, Luena Estates and Kawambwa Tea Company.

Mr Speaker, it is worth noting that this listening Government is going to take tourism in this country to another level and this is gratifying. Luapula has potential for the development of tourism as it has so much to offer. The province has lakes and rivers, a national park and eleven waterfalls, all of which can be harnessed for the development of tourism. The people of Luapula are very confident that this listening Government will even implement the Destination Luapula Project that was launched, in 2008, and was supposed to go a step further in 2009. This project was allocated over K600 million in the 2009 estimates of expenditure, money which has not been seen in Luapula to date.

Sir, the Luapula Province is supposed to be part of the so much talked about Northern Circuit. However, in all the pronouncements, since 2009, the former Government was only talking about Kasaba Bay. In all the Budget speeches for 2009, 2010 and 2011, the MMD Government only talked about Kasaba Bay whenever referring to the development of tourism in the Northern Circuit. That is not the way it should be. The Northern Circuit Programme for the development of tourism should include the Luapula Province.

Mr Ngonga: Hear, hear!

Mr Chilangwa: Mr Speaker, in 2009, the then hon. Minister of Finance and National Planning presented some estimates of expenditure on the development of tourism, especially on the development of the Northern Circuit as follows:

“We hope to attract to the area more than twelve world class hotels thereby creating thousands of jobs for our people.”

That was, in 2009, but to date, there is no single world class hotel in the area. This is despite the fact that, in 2009, over K50 billion was spent in the area and K95 billion in 2010. The people who live in the Northern Circuit were expectant that jobs were going to go their way. They were expectant that with the coming of twelve world class hotels to the area, their livelihoods were going to be changed forever. It was never to be.

Mr Speaker, I implore this listening PF Government to revisit these efforts on the development of tourism so that the people in the Northern Circuit can see the real fruits of changing government.

Mr Ngonga: Hear, hear!

Mr Chilangwa: Sir, with the increased agriculture allocation in next year’s Budget, it is my hope that the farmer support packs for Kawambwa Constituency, in particular, will be increased. For your information, Kawambwa can easily be the food basket of this country. It has the perfect climate, high rainfall, good soils and enjoys rainfall from October continuously up to the beginning of May. Even as some people were lamenting, in this House, that their areas are going to experience drought, in Kawambwa, maize is already growing and some of it is already twelve to thirty centimetres high.

Mr Speaker, we need to harness areas with the potential for increased food production and which do not give us challenges in relation to climate change. We need to zero in on those areas and Kawambwa provides such an opportunity.

Mr Speaker, I am grateful to note that there is also an increment in the allocation to the health sector. Money has been increased in next year’s Budget and we are grateful and hopeful that the people of Kawambwa, in particular, are going to enjoy some good health facilities from the few health centres that we have. My special request to the hon. Minister is that we need Kawambwa District Hospital to be included in the health facilities that are going to be expanded. We need equipment, drugs and an ambulance for Kawambwa District Hospital. Only then will the people of Kawambwa see the true benefits of the 2012 National Budget.

Sir, in the education sector, it is good to note that next year’s Budget has included the construction of a number of schools. That is how it should be, but these schools should not be constructed in a few isolated areas. Kawambwa has been left out for a very long time and has not had any new high school built over the last twenty years. The people of Kawambwa are confident that with this allocation, they will see new schools coming up in the area. They also hope to see the rehabilitation of old schools, including Kawambwa Boys Secondary School which has dilapidated ablution blocks.

Mr Speaker, on infrastructure, we are very grateful that, in this year’s Budget, the Government intends to spend substantial amounts of money on the construction and feasibility studies on some of the major roads. That is how it should be. This is because in the twenty-year reign of some of the people who are seated on your left, no single road was built in the Luapula Province.

Hon. Government Members: Hear, hear! It is true.{mospagebreak}

Mr Chilangwa: Not even a feeder road was built. They patched up a few places, but immediately the rains came, the roads were washed away. The people of the Luapula Province, Kawambwa in particular, are eagerly looking forward to next year when some of these projects are going to be implemented.

Mr Speaker, I would like to appeal to the hon. Minister of Finance and National Planning on the need to have a number of feeder roads worked on as a matter of urgency because if that is not done, Kawambwa Boys Secondary School and St Mary’s Girls’ Secondary School will be cut off during this rainy season. I, therefore, ask, on behalf of the people of Kawambwa, that remedial works be done urgently to address their plight.

Mr Speaker, in conclusion, the 2012 estimates, as presented by the Hon. Alexander Chikwanda, is a well-thought-out Budget, excellent in character and very good with all points of deliverables. This is a stepping stone, bearing in mind that we had to put this Budget together within a few weeks after winning the election. It was not easy, but you did it. Well-done. That is how it should be and everybody, including the people on your left must support this Budget. Instead of just singing about the CDF, they should look at the bigger picture of this Budget and its character.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Ngonga: Muli baume.

Mr Milambo (Mwembeshi): Mr Speaker, may I start by appreciating and thanking the hon. Minister of Finance and National Planning for recognising, in his Budget presentation, that there is a firm and sound foundation left by the MMD Government for his Government to start from. May I also thank the hon. Minister for withstanding the heat and pressure which was exerted on him by the highly expectant Zambians, who wanted to know how this Budget was going to transfer and put more money into their pockets.

Mr Speaker, the Budget delivered to this House by the hon. Minister of Finance and National Planning did not handsomely address the concerns of the many Zambians, more especially the youths who turned out in large numbers to vote for the PF. There is no agenda for the youths in this Budget. I have looked at it and I think I am qualified enough to analyse it.

Hon. UPND Members: Hear, hear!

Mr Milambo: The agenda for youths is totally absent.

Hon. Opposition Members: Hear, hear!

Mr Milambo: Mr Speaker, may I talk about taxation and I want to dwell much on PAYE. In this Budget, the non taxable income on PAYE was increased by 100 per cent, from K1 million to K2 million. This move has, no doubt, increased the disposable income for the Zambians in the formal employment sector. Now, in Mwembeshi, where I come from, we have only less than 150 people in formal employment. So, this Budget does not appeal to them whatsoever.

Interruptions

Mr Milambo: Mr Speaker, this move has, no doubt, increased the disposable income for the Zambians in formal employment, but the question which begs an answer is: How many Zambians are in formal employment? Statistics show that there are only 511,000 people who are in formal employment in Zambia. According to this Budget, more money will only be put in the pockets of 511,000 people, as these are the people who are in formal employment. In view of this, the Budget is only targeting a small fraction of 13 million Zambians and, therefore, does not qualify to be referred to as pro-poor Budget.

Mr Speaker, further, this Budget is not at all inclusive and it has even widened the gap between the poor and the rich. For this Budget to be more inclusive, the best move would have been a reduction of the VAT percentage by 2 per cent, which is from 16 per cent to 14 per cent. This reduction by 2 per cent would have resulted in the revenue loss of K590 billion. This loss would have been regained if the PF Government had reintroduced the windfall tax.

Hon. UPND Members: Hear, hear!

Hon. Government Members: Aah!

Mr Milambo: Mr Speaker, this is the plain truth. If the PF had taken this route by reducing the VAT percentage by 2 per cent from 16 per cent to 14 per cent, the Budget would have taken care of many Zambians as VAT is universal in its application compared to PAYE, which is totally dependent on the people who are formally employed.

Hon. Opposition Members: Hear, hear!

Mr Milambo: Mr Speaker, let me talk about windfall tax. The PF promised the people of Zambia to reintroduce the windfall tax once voted into power. It is now in power, but has not reintroduced the windfall tax. Has it not cheated the people of Zambia?

Mr Speaker: Order! The word ‘cheated’ is unparliamentary. May you withdraw it please?

Mr Milambo: Mr Speaker, I withdraw the word ‘cheated’ and I replace it with ‘misled’. This type of misleading will shortly catch up with the PF…

Hon. Opposition Members: Hear, hear!

Mr Milambo: … because 2016 is around the corner. Continue misleading the people.

Laughter

Mr Milambo: Mr Speaker, I would want to advise the PF Government to reintroduce the windfall tax if it wants to be in agreement with the many Zambians.

Hon. UPND Member: Hear, hear!

Mr Milambo: As we are debating here, Zambians are listening. As you went around campaigning, Zambians were listening. Do not u-turn. If the PF does not reintroduce the windfall tax, I am assuring it that 2016 will be too hot, …

Hon. Opposition Members: Hear, hear!

Mr Milambo: … difficult and unbearable for it.

Hon. UPND Members: Hear, hear!

Mr Kampyongo: Ulabeja!

Mr Milambo: Mr Speaker, with regard to agriculture, I would not want to talk more about the Maputo Declaration on Agriculture and Food Security which states that 10 per cent of national budgets go towards agriculture. This point has been laboured on by a lot of people from this side of the House although the Budget did not meet the 10 per cent as per requirement of this protocol.

Mr Speaker: Order!

Business was suspended from 1815 hours until 1830 hours.

[MR SPEAKER in the Chair]

Mr Milambo: Mr Speaker, when business was suspended, I was talking about agriculture and I said that I did not want to talk about the 10 per cent of the Maputo Declaration on Agriculture and Food Security, which this Budget has failed to meet.

Hon. UPND Members: Hear, hear!

Mr Milambo: This point has been adequately dealt with by a number of debaters from my side.

Mr Speaker, let me straight away talk about the K800 billion which was allocated to irrigation, infrastructure, livestock, fisheries and aquaculture development. Just at a glance of what is involved in these activities, one would say that this Budget has not adequately handled this part of agriculture.

Mr Speaker, it does not require an economist or accountant to understand that this amount is not adequate. It just requires common sense. The amount is not enough. I want to believe that even my colleagues on your right will agree with me that there is a need to adjust this amount upwards.

Hon. UPND Members: Hear, hear!

Mr Milambo: Coming to the issue of constitution making, we were first informed, in this House, by the President of Zambia, His Excellency Mr Michael Chilufya Sata, that the new Constitution would be reviewed and delivered to the Zambians in ninety days. However, the hon. Minister of Justice thereafter changed and advised this House that it is not possible to have a new Constitution in ninety days but, probably, in twelve months.

Mr Speaker, may I advise the Executive to consult each other thoroughly and adequately before they make any matter public. This will save them from future embarrassments of changing goal posts.

Hon. Opposition Members: Hear, hear!

Mr Milambo: As is the case with the timeframe of the new Constitution, we are in the process of approving the Budget for 2012 …

Hon. UPND Member: We want them to apologise.

Mr Milambo: … and we have been told by the hon. Minister of Justice that the process of drafting a new Constitution is also underway. Sir, it will be a minus for this House if we were to go ahead and approve this Budget without an allocation for the Constitution-making process.

Hon. UPND Members: Hear, hear!

Mr Milambo: It would be a big minus for this House.

Mr Speaker, as regards the CDF, much has been talked about the K120 billion allocated to the CDF not being enough. This amount translates into K800 million per constituency. If we were to take a constituency such as Chongwe, which has ten wards, and divide the K800 million by the ten wards, we will be talking of K80 million per ward. What development can there be with K80 million?

Hon. UPND Members: Nothing!

Mr Milambo: I insist that the CDF be adjusted upward to K5 billion.

Mr Speaker, I would like to remind my friends on your right that the PF is a town party, and history has it that there is no ruling party in Africa …

Interruptions

Mr Speaker: Let the hon. Member debate freely.

Interruptions

Mr Speaker: Order!

Let the hon. Member debate freely. May you continue.

Mr Milambo: I thank you, Sir, for your protection.

… which has continued to be popular in towns and cities.

Mr V. Mwale: Bauze!

Mr Milambo: Mr Speaker, the sooner the PF realises that it should start developing rural areas and increasing the CDF, the better for it.

Mr Mweetwa: It will not realise.

Mr Milambo: Mr Speaker, if it does not do that, 2016 will become its exit point.

Hon. Opposition Members: Hear, hear!

Mr Milambo: Mr Speaker, as I conclude, I want to inform the nation that this Budget is neither a pro-poor one nor is it inclusive. My rating of this Budget is a ‘B’ class.

I thank you, Sir.

Hon. Opposition Members: Hear, hear!

Mr B. Mutale (Kwacha): Mr Speaker, I would like to pay my gratitude to the hon. Minister of Finance and National Planning for the Budget that was presented to this House. The Budget is a pro-poor one although some hon. Members in other quarters do not seem to see this point. This is a pro-poor Budget, which is putting more money in the people’s pockets. This includes people on both your left and right. The K2 million tax exemption threshold is a very good thing that has happened to this country. The teachers, police officers and miners will all benefit from it.

Hon. Government Members: Hear, hear!

Mr B. Mutale: This is a very good move by the PF Government because it has fulfilled its campaign promises of “more money in people’s pockets and lower taxes.” These are the lower taxes the PF was talking about in its campaign. However, the doubting Thomases do not want to see that the K2 million tax exemption threshold has benefitted not only the 80,000 people in formal employment that we are talking about, but their families are also beneficiaries. Therefore, the K2 million threshold is benefiting a lot more people than the numbers we are talking about.

Hon. Government Members: Hear, hear!

Hon. PF Member: Hear, hear!

Mr B. Mutale: Mr Speaker, on the health sector, money has been allocated and I hope this will translate into making the people, who go to hospitals, benefit by getting drugs. I will make reference to our former governments, but excuse the UPND because it has never been in the Government before.

Hon. PF Members: Hear, hear!

Mr B. Mutale: If, for example, a patient travels from Zambezi on referral to any nearest hospital, that patient will be given a prescription. How can a patient get into town and buy drugs? The hospital is supposed to have drugs for patients coming from the villages. They are poor people as we have heard here. Those people sleep on wires not even on mattresses. If you go to a hospital such as the University Teaching Hospital (UTH) ...

Mr Speaker: Order! Please, address the Chair.

You may continue.

Mr B. Mutale: Mr Speaker, I was just carried away.

Laughter

Mr Speaker: Order! Yes, in the wrong direction.

You may continue.

Laughter

Mr B. Mutale: Sir, it is unfortunate that our friends do not want to support this Budget though I totally support it. This is because the poor people will benefit from this Budget as it will provide the necessities. It should not be like in the past where people were just being given prescriptions. People were coming from very distant places such as Zambezi and Mporokoso and had no money to buy drugs. If more money is allocated to this sector, people will benefit by having drugs, linen and other things that go with caring for a sick person. Let the PF Government make an effort by turning round this vision which was passed onto to the people. In fact, the PF is just carrying on the burden that was left by the MMD and is trying to improve on it. I am sure, as a working Government, the hospitals will start giving drugs to patients very soon instead of prescriptions.

The other issue is about people running tu ntembas and opening up private pharmacies in the hospital premises. They sell drugs to patients who do not even have money. Let these be run by the hospital authorities. The PF Government will ensure that patients admitted in hospitals benefit from the pro-poor Budget. If a patient is admitted and is given a prescription, but has no money to buy drugs, that patient will end up dying because of a lack of medication. Therefore, the PF Government will look after the poor people. In fact, we will all benefit from this venture.

Let me discuss the Ministry of Local Government, Housing, Early Education and Environmental Protection. More money has been allocated to this ministry. Before Independence, there were community centres where children used to spend most of their time. Children need to go to such centres even to start learning how to write. There is writing on the floor and writing on slates until they graduate into writing into smaller books. These facilities have been abandoned and turned into beer halls and churches by the MMD, but they are meant for children to be kept off the streets to prevent them from getting into bad habits. I appeal to the ministry to make sure that these centres are re-established so that children can start going there to play games, among other things. If we do not invest in these children at a tender age, we will end up having children of bad character and then we will start complaining that the children of today have no respect for elders. The bad character is because of where they are coming from. We have not invested in the children. So, there is a need to invest in them and if we do not, we will reap what we have sown.

The other issue is about the local government embarking on improving water and sanitation for its people because it is responsible for their welfare. In fact, mostly, the water utility companies have been stagnant. The plants are not grown, but the population has been growing everyday. The demand for water compared to the population is not compatible. Therefore, we should engage ...

Lieutenant-General Shikapwasha: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Lieutenant-General Shikapwasha: Mr Speaker, is the hon. Deputy Minister in order ...

Hon. Government Members: He is not a Deputy Minister.

Lieutenant-General Shikapwasha:  Is he not a Deputy Minister?

Hon. Government Members: No.

Mr Speaker: Order! He is not a Deputy Minister. I hope that was not the basis of the point of order. If it was, please, hon. Member, continue.

The hon. Member for Kwacha may continue.

Laughter

Mr B. Mutale: Mr Speaker, I have just been promoted. I hope it will be seen.

Laughter

Mr B. Mutale: Mr Speaker, we need to have facilities enhanced such as street lights, road markings and drainages in the communities we live in. We find roads being washed away because the drainages are not there, but I appeal to my Government to provide civic education to the people so that they stop throwing litter anyhow. This should be enhanced because we want to have a clean Zambia. We have a programme which was started by the MMD. This is the “Keep Zambia Clean and Healthy Campaign”, but we never saw anything done. I urge the hon. Minister of Local Government, Housing, Early Education and Environmental Protection to embark on this programme so that we keep our environment clean.

Mr Speaker, the Copperbelt University (CBU) is in Kwacha Constituency. This institution of higher learning needs serious attention. It has always been underfunded. Eight students share one room. They cook and read in the rooms. It is very uncomfortable for the students. The Government, therefore, needs to do something about it. The funding should be increased so that students at this university are assisted.

Mr Speaker, secondly, we need to put a bridge across the Kafue River in Kwacha Constituency. There has never been a bridge from the time of the UNIP. The United Party for National Development (UPND), …

Laughter

Mr Mutale: I am sorry UNPD.

Laughter

Mr Mutale: Before the MMD came into office, it campaigned on the platform that it would build the bridge, but it never happened. We, as the PF, defeated it because it was telling us lies.

Sir, I now appeal to my Government to consider the construction of this bridge and I am sure that it has been budgeted for. The reason for the appeal is that Kitwe has stopped growing in the absence of this bridge. We have run out of space. The moment we make a bridge across the Kafue River, everything will open up and new investors will come. At the moment, investors are going round buying the same small properties that are available. Some of them have turned homes into offices because there is no room for expansion. The moment my Government constructs the bridge, it will benefit not only Kitwe, but also Mufulira and Ndola. Even as we think of building a modern airport, that is the location to look at. This is a place where we can put up a modern airport and a modern stadium. We can also put up a modern hospital there, instead of sending people to South Africa for specialist treatment for knees that hurt like mine. I would be able to get treatment across the Kafue River if we put up a bridge.

Sir, my point is that if Kitwe Town and the Copperbelt Province at large have to grow, the much-talked about Mufuchani Bridge has to be built. Business houses in other towns do not have space either. Therefore, if this bridge is built, we will see a lot of progress. We will attract more investors and create employment in Kitwe and Kwacha Constituency in particular.

Mr Speaker, allow me to inform you that, in the forty-seven years of Zambia’s Independence, the Mufuchani area has never had clinics or schools. The only school in the Chantete Area is the one run by the Faith Baptist Church. The MMD Government could have done something about it because it promised people that it would, but never did. As regards the clinics, my MMD officials, the community and I there started making three clinics in this area.

Hon. B. Member: MMD Officials?

Mr B. Mutale: Not the MMD, but PF officials.

Laughter

Mr V. Mwale: Expel him. Ba Guy Scott namumfwa?

Mr B. Mutale: Mr Speaker, it was the PF officials and I.

Mr Speaker: The record has been corrected.

Laughter

Mr B. Mutale: Mr Speaker, my Government should take over these projects that were started in this area and complete them.

Laughter

Mr B. Mutale: The PF Government should assist the people in that area because they do not have heath facilities. There is not even one health centre. However, the community, through the PF party and its Government, started making these clinics. We need assistance to finalise them so that people can have places to go to for health services.

 Mr Speaker, my other appeal is to the hon. Minister of Local Government, Housing, Early Education and Environmental Protection.  The people of Chantete walk to the Ndola/Mufulira Road to bury their dead. Walking to and from this burial place takes about eight hours. It take for hours going and four hours getting back. The hon. Minister should kindly consider allocating a piece of land where these people can bury their loved ones. They will appreciate it. They were left without support by the MMD Government, which used to go there with Chitenge materials, which are irrelevant to their health. The best thing we can do, as the PF, is to empower them by giving them what they need. They contributed to building this clinic by making the bricks.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr D. Mumba (Chama North): Mr Speaker, …

Hon. Government Members: Obama!

Mr D. Mumba: … I thank you for according me the opportunity to add my voice to the debate on this important Motion on the Supply of the Estimates of Revenue and Expenditure for the fiscal year 1st January, 2012 to 31st December, 2012, delivered by the hon. Minister of Finance and National Planning.

Mr Speaker, first and foremost, let me appreciate the hon. Minister for recognising the efforts of the previous Government, the MMD. For me, this is what is supposed to be done because governance has no finishing line. If you are able to appreciate the foundation, you will be able to build on it. We all appreciate this and thank the hon. Minister of Finance and National Planning.

Hon. Opposition Members: Hear, hear!

Mr D. Mumba: Mr Speaker, having done that, I now want to draw the attention of the hon. Members to page 5 of the Budget Speech on which the current hon. Minister of Finance and National Planning was appreciating his predecessor. He started with commendations. Of course, all of us are able to tell what exactly transpired. We had a single-digit inflation rate and the GDP grew to a desired level. All of us can see that and I would have wanted to see three areas highlighted.

Sir, of the three, only one was highlighted in the review of the 2011 Budget performance. I have no problem on this one because I have seen it. The second area I would have wanted to see stressed is that of the infrastructure projects. If we take the health sector, for example, we could have stated which health post or district hospital we had started constructing. That could have provided a basis for understanding what projects had been completed and those that were on-going. The other area I would have wanted to see is an assessment of the Sixth National Development Plan (SNDP).

Interruptions

Mr D. Mumba:  Mr Speaker, before I go into details, let me draw the attention of the House to the difference between a budget and a plan so that we can appreciate the Vision 2030, the SNDP and the Medium-Term Expenditure Framework (MTEF). In simple terms, a plan is a statement of what one intends to do. A budget is a financial implication of carrying out what one intends to do. This means that the Budget depends on the plan. The plan can stand on its own. The reason I wanted to see the assessment of the SNDP was to get a background because the implementation is coming to an end this 31st December, 2011. We would have seen if there were any challenges. If there were any challenges, the SNDP should have been used as the tool for us to sort them out.

Hon. Members: Hear, hear! Obama talking.

Mr D. Mumba: We should not just guess how much is required in the health or agricultural sectors. This is because a plan is a roadmap. Time and again, we need to review our plans.

Mr Speaker, may I draw the attention of this House to 2006, when Zambia had a vision of becoming a middle income nation. By then, we were saying that, by 2030, Zambia would be a middle income country. The poverty levels by then were 62.8 per cent. At the moment, the poverty levels are at 65.5 per cent. This is according to the Human Development Report for 2011.

Sir, what does this mean to us? It means that 65.5 per cent of the 13 million Zambians are swimming in poverty. They are not able to live on around one dollar, which is the international threshold. This is the benchmark. This is serious.

Mr Speaker, we have 39.5 per cent who are able to live on a dollar plus a quarter a day. This is just a small part of the population. The 60 per cent, which is about 7.8 million Zambians, cannot live on a dollar plus a quarter a day. This is the international poverty threshold. It is the benchmark. The situation is quite sad.

Sir, we are saying that we are growing economically, but on the other hand the impact is not being felt by the people on the ground.

Mr Speaker, let me bring in an equation in my debate.

Laughter

Hon. Members: Hammer!

Mr D. Mumba: We have inputs which have to be processed in order to come up with the outputs. The type of outputs that we produce are based on our  efficiency. The inputs that we are talking about are machinery, funding and personnel. Those are the critical inputs. The outputs should be what we desire to achieve.

For example, if we build a hospital, it can be classified as an output. However, if we had to analyse the equation up to just the output, then, we will be making a mistake. It is no wonder the impact is not being felt on the ground.

Hon. Members: Hear, hear!

Mr Kazonga: MMD!

Laughter

Mr D. Mumba: Mr Speaker, we should go a step further to see what benefits the growth in our economy is bringing to our people. The output part answers only one part of the question. What benefits is the growth bringing? Who is benefiting from the growth? We expect this growth to trickle down to entrepreneurs and ordinary Zambian citizens.

Hon Members: Hear, hear!

Mr D. Mumba: Now, how should we do that? We should look beyond the first step.

Sir, if we take the first step to be the building of a hospital, what will be the outcome? The outcome should be a low maternal mortality rate recorded.

Hon Members: Hear, hear!

Mr D. Mumba: That is real impact. We are not just interested in seeing the hospital. You can build ten or twenty of them, but if the impact is not felt, we will just be singing about various development theories.

Hon. Members: Hear, hear!

Mr D. Mumba: I am sure that, in this House, we have a lot of professors, doctors and so on and so forth. Even as accountants or economists, our interest should be beyond the theories. We should be interested in changing the quality of lives for the Zambian people.

Hon. Members: Hammer!

Mr Chikwanda: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Chikwanda: Mr Speaker, the hon. Member claims to come from Chama, but the way he is debating can make one think that he comes from Chinsali. This is because the very high level of reasoning he is exhibiting is not commensurate with him coming from Chama. Is he in order to debate in that manner?

Laughter

Mr Speaker: Order! Well, I think, as an exception, he is in order. May the hon. Member continue, please.

Laughter

Mr D. Mumba: Mr Speaker, I thank you very much for your ruling. I appreciate it. In fact, I no longer belong to the Eastern Province. For your information, I am an hon. Member of Parliament from the Muchinga Province.

Laughter

Hon. Members: Hear, hear! Hammer!

Mr Speaker: Order! Maybe, that explains it.

Laughter

Mr D. Mumba: Mr Speaker, what I mean is that Chama Constituency is among the six districts which are in the new Muchinga Province. So, I can proudly say that I am an hon. Member of Parliament who belongs to the Muchinga Province.

Sir, having fully talked about the equation which I brought into my debate, let me now talk about direct taxes.

Mr Speaker, I give credit to the hon. Minister of Finance and National Planning regarding the new tax measures which he wants to employ. Although others might not agree with them, I think their implementation will lead to our people having more money in their pockets.

Hon. Government Members: Hear, hear!

Mr D. Mumba: Sir, when talking about new direct tax measures, I have in mind the ones connected to the Pay as You Earn (PAYE).

Hon Members: Hear, hear!

Mr D. Mumba: Mr Speaker, when the 2010 Budget was being presented, the threshold for those who were getting between K800,001 to K1,335,000 was put at 25 per cent. For those who were getting between K1,335,001 to K4,100,000, it was put at 30 per cent, while for those who were getting above K4,100,000, it was pegged at 35 per cent.

Sir, when the 2011 Budget was presented, it did state that those who were getting K1 million were going to be exempted from paying tax. It was pegged at 25 per cent for those who were getting between K1,001,000 to K1,735,000 and at 30 per cent for who were getting between K1,735,000 to K4,200,000 while it was put at 35 per cent for those who were getting above K4,200,000.

Now, the PF Government has increased the tax free threshold from K1 million to K2 million. This means that it has been increased to K24 million from K12 million per annum. This is a good thing. I think we should give credit when it is due.

Hon. Government Members: Hear, hear!

Mr D. Mumba: Sir, even if we are targeting 80, 000 direct beneficiaries, we should also realise that the multiplier effect phenomenon has a lot of benefits. For example, we may have families of about six people and maids who could be depending on individuals who are part of these 80, 000 people. When the hon. Minister of Labour, Sport and Youth establishes the minimum wage, it will lead to an increase in the salaries of the maids.

Hon. Government Members: Hear, hear!

Mr D. Mumba: Under the new tax regime, if someone gets K2 million, it will all go into his or her pocket. Suppose someone gets K3 million, what will be the take home salary? To me, if someone gets K3 million, it will be K2 million plus 75 per cent of K800,000 and 70 per cent of K200,000. The person will walk away with K2,740,000 and only pay K260,000 as PAYE which is 9 per cent of K3 million. 91 per cent of the K3 million will all go into the pocket, which is more than 80 per cent of the person’s pay.

Hon Government Members: Hear, hear!{mospagebreak}

Mr D. Mumba: Mr Speaker, let me also talk about the new lending interest rates in relation to the reduction in the country’s reserve ratio. I think there should be a balance there because if the cost of borrowing is reduced, then, the country’s belt will have to be tightened. This means that, at one point, the commercial banks will compromise their liquidity.

The reduction in the cost of borrowing will create the demand for loans. The demand can only be met by also reducing the reserve ratio so that the commercial banks can enjoy more liquidity.

Hon Members: Hear, hear!

Mr D. Mumba:  This has an effect on the aggregate demands. As we all know, the GDP is made up of the total market value of the all the goods and services produced in a country in a given year, equal to consumer, investment and Government spending plus the value of  exports minus imports.

Now, to get the Gross National Income (GNI), we will simply add the net income from abroad, which includes labour compensation plus property income.

Hon Government Members: Hear, hear!

Mr D. Mumba: Mr Speaker, the proposed tax measures will make the aggregate demand to go up.

Mr Speaker, I also want to commend the hon. Minister of Finance and National Planning and the PF Government for increasing the grants to local authorities. One thing I should mention is the need for capacity building to be done on the ground. This is because if it is not done, even if we increase the resources to the local authorities, nothing will be achieved. Let me demonstrate how capacity building is key in relation to the four M’s, which are machinery, methods, manpower and material. If you have a skilled manpower, you will be able to use the right methods, machinery and material to produce quality services or products.

Hon. Member interjected.

Laughter

Mr D. Mumba: Mr Speaker, much as there has been an increment in the grants to the local authorities, it is imperative that there is capacity building on the ground.

Mr Speaker, I also want to comment on the further recruitment of the 2,500 front line medical personnel. When I heard about that, I was happy because, in my constituency, …

Laughter

Mr D. Mumba: … some health centres are manned by classified daily employees (CDEs) who pose a danger to our lives. So, at least, when I heard about the recruitment, I was relieved. Now, I expect some of these medical personnel to be sent to Chama North Constituency and not the Chama which is now in Muchinga Province.

Laughter

Mr D. Mumba: Mr Speaker, on education, I think the further recruitment of 5,000 teachers is a welcome move and I appreciate the PF Government for that. At the moment, the pupil-teacher ratio will be reduced. The reduction in the pupil-teacher ratio will lead to effective and qualitative service delivery in as far as education is concerned. I think that move is in the right direction. 

Sir, before I conclude, let me just highlight the following. Firstly, as we are implementing these activity programmes in the five-year period, let us not take it the business as usual way, but as a project. If we do that, as each year lapses, we would have covered a milestone. When we engage in activities correctly and successfully, we will be sure that, at the end of the year, even the GDP will bear meaning on the lives of local Zambians. That one is very key.

Hon. Members: Hear, hear!

Mr D. Mumba: Mr Speaker, secondly, I think we should be able to prioritise activities because we have competing demands over the little resources that we have at hand. When we are able to prioritise something which is important and urgent, we should rank it first. For instance, if you have seen that people are dying of cholera in a given area, why not drill a borehole so that people can access clean and safe water? Those are the areas that should be prioritised.

Mr Speaker, we also have to work as a team and this is very cardinal. In this area, we need to use team formation which has four stages. You will remember that when we just came to this House, we were in stage one, which is forming. At this stage, we did not know each others’ backgrounds …

Laughter

Mr D. Mumba: … and so we could come into conflict easily. The second stage was storming. This stage was a crucial one because we had conflicting objectives. Now, we are at the stage of norming. At this point, we know each other. For instance, we have the Hon. Mr Speaker and hon. Minister of Finance and National Planning in place. This means that we know each other. The final stage, which I am expecting, is performing.

Hon. Members: Hear, hear!

Mr D. Mumba: Mr Speaker, when we are performing, I should not expect any wrangles here and there. At this stage, quite alright we can put up constructive, but not destructive criticism.

Hon. Members: Hear, hear!

Mr D. Mumba: Sir, let us support issues which are straight forward. In fact, even when a child at home is wrong, you cannot just start by condemning him/her. You will begin by commending the area in which the child has done well and using the word ‘however’ you can point out the area of weakness in which you wish the child to improve. That way, you will find that your child will be encouraged and you will have a positive feedback.  However, if you start by condemning your child, he/ she will be discouraged.

Sir, above all, as we are in the House, we should fear God. In order for us to implement what we have planned, we need God to be in our midst because on our own, we cannot do anything. When God’s presence is with us, he will be able to give us wisdom on how best we can drive this nation. This House is a summary of Zambia.

Laughter

Mr D. Mumba: Sir, the 150 Constituencies are a summary of Zambia. This means that we are the engine that should drive the economy so that we better the lives of the Zambian people. Therefore, if we spend most of the time fighting, it will mean that we will have less time to work on things that can add value to our economy.  I think that would not be admirable.

Mr Speaker, although time is not with me, …

Hon. PF Members: Continue!

Mr D. Mumba: Sir, as we are doing our business, let us look at the equation I talked about earlier. You will find that many companies in Zambia work like that. There are companies that say that they have achieved, but on the other hand, poverty is still prevailing. Now, let me give you an example of companies that just base their performance on figures. There are situations where, today, a company is operating and, tomorrow, it is under receivership. Why is the management overtaken? It is because you will find that accountants are using creative accounting and doing window dressing. They can just plot figures on stock using the first in first out (FIFO) method.

Laughter

Mr D. Mumba: You will find that computers are bought at a lower price, but get valued at different prices to increase the gross profits so that even if you subtract the administrative costs, you have a huge net profit. At book value, you will even say that the company is performing well, but two years down the line, the company will be under receivership. This means that the ratio will be highly geared. Therefore, we should do away with that. Let us see what impact our growth is having on the lives of the people of Zambia.

Hon. Members: Hear, hear!

Mr D. Mumba: Sir, only when that is done will we be moving in the right direction. We should not be applying a lot of theories. We know that we have been to school because we have professors, doctors, accountants and economists in this House.

Laughter

Mr D. Mumba: Therefore, let us focus on real issues. When we say that something should be done a certain way, it should be done that way.

Mr Speaker, I thank you.

Hon. Members: Hear, hear!

Mr Mwali (Chifunabuli): Mr Speaker, thank you for this opportunity to debate the Motion on the Floor of this House. Firstly, my admiration is to the hon. Minister of Finance and National Planning for skilfully managing the transition from the MMD to the PF Administration. The same admiration is extended to the rest of the Front Bench under the able leadership of the Leader of Government Business, His Honour the Vice-President, Dr Guy Scott.

Mr Speaker, we should commend the President for having had the wisdom to appoint a distinguished Zambian with impeccable qualifications, skills, experience and maturity.

Mr Speaker, we should not underestimate the pressure under which this Budget was prepared. These pressures came to the fore on 23rd September, 2011, when President Sata was declared winner. Zambians voted for change and expect that change. However, these expectations should not be left hanging. They have to be grounded in the reality of the present Zambian economy.

Sir, we are assured that with the hon. Minister of Finance and National Planning in the driving seat, Zambia and all of us can only expect the best. The Budget, which was delivered almost two weeks ago, has generated a lot of interest. It has been subjected to numerous reviews, but most of the credible and reputable individuals and organisations seem to agree on the basic aspects of the Budget. One of them is that the Budget is in line with the PF Manifesto.

Secondly, this Budget is not pro-poor. As expected, this being the first Budget, and considering the mammoth task that is ahead of this administration, there is no way these expectations could be met in the first Budget but, as most reviews say, we still have more budgets to come. So, we should remain hopeful.

Nonetheless, Mr Speaker, as an hon. Member of Parliament representing a backward rural constituency, Chifunabuli, in a backward province, Luapula, I should be concerned about the revenue at the disposal of the hon. Minister of Finance and National Planning. His answers, yesterday, regarding the issue of taxations were very instructive. At least, he was able to give us insights into the direction he is likely to take on tax.

Sir, the thrust of the PF Manifesto is on poverty alleviation, to transform the Zambian economy and the Zambian society. For this to be done, we require a lot of resources. In as much as we, hon. Members of Parliament, are concerned with the expenditure side, I think we should also be concerned with the revenue side. Where will the money come from?

Mr Speaker, when we talk about economic growth in our country, especially the growth in the GDP, we should be mindful of the fact that our economy is dependent on foreign investment, especially in the mining sector. Accordingly, the big chunk of the GDP is that production which is in the hands of foreign investors. Very little is in the hands of the local people.

Sir, accordingly, in the foreseeable future, the tax that is going to be levied on the profits from foreign investment will matter a lot. I commend the hon. Minister for showing boldness in his first Budget to increase the mineral royalty tax from 3 per cent to 6 per cent. At the same time, I wish to spur the hon. Minister to move a little further and, maybe, try and approach the tax levels that are being applied in some of our neighbouring countries and other economies for us to be able to raise enough revenue to support our anticipated expenditures.

At the same time, Mr Speaker, I would like to know whether we are considering the mineral royalty tax as a substitute for income-related tax. Will it not be prudent, in future, apart from raising the level of the mineral royalty tax, to also look at the income-related tax?

Sir, the hon. Minister of Finance and National Planning has been very realistic when he says that it is not possible, as things stand, to bring the informal sector into the tax net due to prohibitive administration costs. We are, however, mindful that the informal sector, in Zambia, constitutes a major component of our economy. I agree with the hon. Minister that we need elaborate studies to guide us as we try to bring the informal sector into the tax net.

Mr Speaker, as Zambians, we have been down the road of crippling foreign debt. We know that …

Mr N. Banda: Drink some water.

Mr Mwali drank some water.

Mr Mwali: Thank you, hon. Minister. We have been down that road before and I think we need to be cautious.

Successcive ministers of finance, before and after the Highly Indebted Poor Country (HIPC) Initiative, continued assuring us that the foreign debt level was still sustainable. Yes, we agree with them, but we should be cautious. It might be more advisable to first of all, exhaust our domestic sources of revenue before we go down that road again.

Mr Speaker, most of the hon. Members of Parliament who have spoken before me, especially those from rural constituencies, have highlighted the significance of the increase in the PAYE threshold. My constituency only comes to life when the frontline Government workers, teachers, nurses, agriculture and extension officers are paid. Therefore, this increase in the PAYE threshold is most welcome and will greatly benefit my people in Chifunabuli just like most rural constituencies.

Sir, I take note that President Michael Sata is truly governing this country by the Ten Commandments. He has delivered on his promise to the people of Chifunabuli by giving them …

Mr Hamududu: Keep the Sabbath and love your neighbour!

Mr Mwali: … an allocation for feasibility studies, detailed designs and preparation of tender documents for the Samfya/Musaila/Luwingu Road. We are very grateful for that.

Hon. Government Member: Hear, hear!

Mr Mwali: This road will do a lot to my constituency and the neighbouring constituency, in Luwingu.

Sir, I wish to request His Honour the Vice-President and Leader of Government Business in the House to inform our President that, with that road, Chifunabuli will be a no go area for the MMD.

Hon. Government Members: Hear, hear!

Mr M. H. Malama: Bwekeshenipo!

Laughter

Mr Mwali: Mr Speaker, I am quick to appreciate the pace at which the hon. Minister of Finance and National Planning had to work to draft this Budget in the limited space of time. We can only hope that hon. Members from Luapula will continue to engage the Ministry of Agriculture and Livestock concerning the fishing industry in the province. All Luapula hon. Members, as I have reminded the hon. Minister of Finance and National Planning, agree that fish restocking is critical for our people’s livelihood.

Hon. Members: Hear, hear!

Mr Chikwanda: Money will come.

Mr Mwali: It is great if funding for this exercise will come. Long live, the hon. Minister.

Hon. Government Members: Hear, hear!

Laughter

Mr Mwali: Mr Speaker, having been assured of money coming for the fishing industry in Luapula, I can now sit down.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr M. H. Malama (Mfuwe): Mr Speaker, as a preacher man, I am able to read the mood of the listeners in this House and, therefore, will be very brief. Firstly, I want to join my colleagues, who really saluted the hon. Minister of Finance and National Planning for having moved the Motion, but I will not end there. I will extend my salutations to the Republican President because the hon. Minister of Finance and National Planning came to this House as a bearer of a message from the Head of State. This means that whatever praises that we have showered on the hon. Minister should also go to the Republican President.

Hon. Government Members: Hear, hear!

Mr M. H. Malama: I want to believe that the Republican President checked the Budget Speech before it was presented here. I wish to remind this House and the nation at large that we have a very humble President this time around. When you compare the picture that some political parties wanted to paint of the current President on television in the previous regime with what is happening now, you can tell that he is a humble man. If the President was anything like the picture they wanted to portray, he was not going to recognise the small achievement the previous government made in the past twenty years.

Mr Speaker, therefore, I salute, firstly, the Republican President and also the hon. Minister of Finance and National Planning. Furthermore, I wish to state that for me, the 2012 Budget is 100 per cent in the right direction. One thing I should actually remind my colleagues and myself is that the plans for a year cannot satisfy everybody in here. I know that some people want to bring different ideas and, of course, some are important. However, the PF Government is a listening one and I am sure we are listening. We are not hard to hear because it is hardness that actually helped the past Ruling Party to march out of office, giving us the opportunity to take over. I want to believe that the same will happen to us if we do not listen and follow what the people are saying.

Mr Speaker, before I talk about the CDF, I want to say that the people are anxiously waiting to see what we are going to do in the Government. So, we will be very steady. As long as whatever you will be telling us makes sense, we will take it because that is the medicine. I keep on refusing when people say we need the CDF as hon. Members of Parliament because we want to come back. No, we are not alone. There are so many people out there. What is important is just to deliver because if you deliver, then, you will come back. Even if you continue delivering, surely, you cannot continue occupying the seats that we are occupying. No. If it was like that, the new hon. Members were not going to be in this House. Therefore, let us learn to give a chance to other people so that we see how they can also dance.

Hon. Government Members: Hear, hear!

Mr M. H. Malama: Mr Speaker, on this point, allow me now to say that it is really surprising to see some experienced men in this House stand up to debate with anger and bitterness. It is not necessary to debate like that. This is the democracy which we embraced in 1991. So, let us accept change.

Hon. Government Members: Hear, hear!

Mr M. H. Malama: There is nothing wrong with fulfilling what democracy demands.

Mr Speaker, as I conclude my debate, I would like to look at one point which is very important to me. The people on your left have spoken about the CDF. I think when I used to sit on your left, I was one of those who never missed the CDF in my speeches. When I was that side, if you may recall very well, I stated that if there will be any Government that will help out the local authorities, it will never come out of power because the local governments are the ones that understand what is happening in the districts. For example, Mpika Municipal Council understands my constituency very well.

Mr Speaker, at this juncture, may I remind the people who have been thinking that Mfuwe is in the Eastern Province that it is not. I will continue preaching this message. Even the road that was worked on is not the Mfuwe/Chipata, but Chipata/Malambo. Mfuwe Constituency used to be called Mpika East in the UNIP days. Therefore, Mfuwe Constituency is in Mpika District and Muchinga Province.

Mr Speaker, I am not worried about the CDF and I am very comfortable with the status quo. This is why I do not even intend to debate the whole twenty minutes because I now have confidence and hope that the Nabwalya Road, which I used to talk about, will definitely be worked on by this Government.

Hon. Government Members: Hear, hear!

Mr M. H. Malama: Mr Speaker, I have with me two copies of the Budget Address for 2012 and for 2011. The one for 2011 has a picture of fingers on the cover which some political parties thought were flashing the symbol of a certain political party, not knowing that it was pointing at the way out.

Laughter

Mr M. H. Malama: Mr Speaker, I am so happy that there is an increment in the allocation of the local government authorities. That gives hope for the people of Mfuwe Constituency because the problems that they talk about day in and day out are best understood by the local authorities not the Central Government. This is where we go wrong. If we pump more money into local authorities, there will be no need of even talking about the CDF. In fact, the people need to understand the history of the CDF. The CDF came up as a result of a lack of development in some constituencies.

Hon. Government Member: Tell them, tabalebumfwa.

Mr M. H. Malama: It was somebody who used to sit in this important corner, where we are sitting who came up with the idea of the CDF.

If development was moving in all directions in this nation, there was going to be no need to talk about the CDF. Unfortunately, some constituencies never used to benefit from the national cake. This is why that wise hon. Member of Parliament thought of coming up with the idea of the CDF. Therefore, if there was not going to be an increment in the allocation to local authorities, I would have joined those hon. Members on your left who are asking for the CDF to be increased. It is the local authority that is supposed to be responsible for working on feeder roads as well as schools and health issues in rural areas. This is why my hon. Colleagues on your left need to understand things. Should this Government allocate enough money to local authorities, I can assure you, no one will be crying for the CDF and that is what we want. In fact, K5 billion is not little money. It is only that our hon. Minister of Finance and National Planning is very careful. There is no way he could have increased it to K5 billion because, as I speak, I am also a member of the Local Government Committee and I know that the utilisation of the CDF is pathetic.

Hon. Opposition Members: Where?

Mr M. H. Malama: In some areas.

Interruptions

Mr M. H. Malama: Mr Speaker, whether they like it or not, they should just listen because what I am saying …

Mr Speaker: Let the hon. Member debate without hindrance.

Mr M. H. Malama: Mr Speaker, the CDF is well-intentioned, but the way we use it to implement projects is pathetic. Sometimes, when you look at some structures that were built using the CDF money, you just laugh. I am not saying that the CDF is a bad idea, but that we should be very careful with it. If we want to increase the CDF, we should also look at capacity building. We need to have people at local level who can really handle that taxpayers’ money. We should not just come here and talk about the CDF.

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

Mr M. H. Malama: Mr Speaker, what we are saying, here, is that we need to look at the increment in grants to local authorities …

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

Mr M. H. Malama: … and, for those who want to raise points of order, I wish to rest my case.

I thank you, Sir.

Hon. Government Members: Hear, hear!

 

ADJOURNMENT

The Vice-President (Dr Scott): 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 1744 hours until 0900 hours on Friday, 25th November, 2011