DAILY PARLIAMENTARY DEBATES FOR THE FIFTH SESSION OF THE TENTH ASSEMBLY

Friday, 17th June, 2011

The House met at 0900 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

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BUSINESS OF THE HOUSE

The Vice-President and Minister of Justice (Mr Kunda, SC.): Mr Speaker, I rise to acquaint the House with some idea of the business it will consider next week. On Tuesday, 21st June, 2011, the Business of the House will begin with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. After that, the House will debate the Motion to adopt the Report of the Committee on Government Assurances.

Sir, on Wednesday, 22nd June, 2011, the Business of the House will begin with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Thereafter, the House will consider Private Member’s Motions, if there will be any. The House will then consider the Motion to adopt the Report of the Public Accounts Committee on the Report of the Auditor-General on the Accounts for the Financial Year Ended 31st December, 2009.

Mr Speaker, on Thursday, 23rd June, 2011, the Business of the House will begin with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Then the House will deal with any other business that may be outstanding.

Sir, on Friday, 24th June, 2011, the Business of the House will begin with His Honour the Vice-President’s Question Time. This will be followed by Questions, if there will be any. Thereafter, the House will consider presentation of Government Bills, if there will be any. Then the House will deal with any other business that may be outstanding.

Sir, on this day, all things being equal, I intend to move a Motion to suspend the relevant Standing Orders to enable the House complete all the business that will be on the Order Paper and, thereafter, adjourn sine die.

Mr Speaker, I thank you.

Mr Kambwili: There will be no more V. J

Laughter

Mr Speaker: Order!

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MINISTERIAL STATEMENT

ROTARY KILN AT NDOLA LIME COMPANY LIMITED

The Minister of Mines and Minerals Development (Mr M. B. Mwale) (on behalf of the Minister of Tourism, Environment and Natural Resources (Ms Namugala)): Mr Speaker, I wish to thank you for according me this opportunity to respond to the point of order raised in this House on Thursday, 9th June, 2011 on the suspension of the operations at the Ndola Lime Company Limited.

Sir, the House may be aware that Ndola Lime Company Limited, a subsidiary of the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), is the main producer of lime which is used by mining companies and the agricultural industry in the country. The company also exports its high quality lime to other countries in the region such as Malawi, the Democratic Republic of Congo (DRC), Zimbabwe and Tanzania.

Mr Speaker, Ndola Lime Company Limited employs two kilns, vertical and rotary, in the production processes. The company mines limestone and processes it in a crushing plant to produce stone aggregates for feed into the vertical and rotary kilns for the production of quick lime. The current capacity of each kiln is 400 tonnes per day, hence the company is able to produce a total of 800 tonnes per day of quick lime. During the financial year ended 31st March, 2011, Ndola Lime Company Limited achieved a fourteen-year quicklime production record of 173,669 tonnes. The company also operates a hydrating plant for the production of hydrated lime.

Ndola Lime Company Limited supplies quick lime and hydrated lime to all the mining companies in Zambia. While the local requirements are currently about 400 tomes per day, the demand is increasing in line with the growth in the mining sector. Further, the company exports quicklime and hydrated lime to the DRC, Malawi and Zimbabwe as already mentioned. The value of exports during the year ended 31st March, 2011 amounted to K42 billion. The demand for lime in the region is also increasing.

The rotary kiln was commissioned in 1972. Over the years, the efficiency of the Dust Abatement Unit has deteriorated. Consequently, the company installed a new Dust Abatement Unit on the rotary kiln in 2010 to ensure that the kiln operates within the dust emission allowable limits of 50 milligrams per cubic metre.  On 2nd June, 2011, the dust collecting plates of this unit developed a fault and became defective. Preparations were made to shut down the unit in order to replace the plates.

As required by the law, to operate such an industry, the company requires to obtain a permit from the Environmental Council of Zambia, now known as the Zambia Environmental Management Agency (ZEMA), that is issued under the Air Pollution regulations.

Mr Speaker, the vertical kiln is on planned annual maintenance to replace refractory bricks, a process that normally takes about forty days to complete. This situation made the company run its production processes on one kiln only. Unfortunately, during the first week of June, 2011, the only operational rotary kiln suffered a major breakdown on the electrostatic precipitator (ESP), a dust abatement component. The non-functioning of the ESP has inevitably led to serious pollution of the environment in Ndola City, with emissions significantly above the acceptable threshold of 50 milligrams per cubic metre required under the Air Pollution regulations.

Mr Speaker, in trying to correct the situation, Ndola Lime Company Limited procured the services of a South African Company which assessed the damage and advised the company that repairs would need a period of not less than four months to complete. In the meantime, the company proposed mitigation measures and requested the agency to allow them to continue running the defective kiln until the vertical kiln is fixed while repairs of the ESP go ahead.

Mr Speaker, during this period, ZEMA received numerous complaints from the public concerning the emissions coming from the continued operations of the plant. In response, the agency conducted an on-the-spot analysis and found that the proposed mitigation measures were unsatisfactory, as pollution levels were beyond the acceptable limits.

Mr Speaker, the House may wish to know that, before my ministry took any action, the agency made enquiries from the major mining companies who are the immediate consumers of Ndola Lime Company Limited products concerning their stock levels. The agency confirmed that the mining houses had lime stocks that would last for, at least, a period of three weeks. It was also established that, by the end of the three weeks, the vertical kiln that had been undergoing routine maintenance would be functional.

Mr Speaker, with these measures in place, my ministry, through the agency, found it necessary to issue a compliance order to Ndola Lime Company Limited to shut down the rotary kiln by suspending the permit Number ECZ/ND/AP4/O64/4. This measure was meant to minimise health risks to the people of Ndola City, resulting from the dust emissions. It was also meant to facilitate the expeditious repairs of the ESP and completion of service maintenance on the vertical kiln by Ndola Lime Company Limited. It was also meant to serve as a deterrent to other erring companies.

Mr Speaker, the agency lifted the suspension on Monday, 13th June, 2011 upon which Ndola Lime Company Limited resumed production. This was after further assessment by the agency that established that Chambishi Metals and Mopani Mines only had less than one day’s supply contrary to the earlier findings that indicated that mining companies had adequate stocks of lime for pollution control. The suspension was, therefore, lifted to avoid the risk of increased pollution due to inadequate lime supply.

Mr Speaker, the other option would have been to keep Ndola Lime Company Limited shut and effect the closure of Konkola Copper Mines Plc (KCM), Mopani Copper Mines, Chambishi Metals and Sino Metals Leach Plants which would have resulted in non-production of both copper and cobalt during this period.

Sir, the House may wish to know that as a precautionary measure to reduce pollution during this period, Ndola Lime Company Limited was directed to reduce production from the normal 55 tonnes to 48 tonnes of lime per hour. Another precautionary measure to reduce pollution was the use of fine materials.

Mr Speaker, Ndola Lime Company Limited is expected to produce lime under the controlled measures until 27th June, 2011 when the kiln under maintenance will be back in order.

Sir, I wish to assure the House that the agency will continue to monitor progress at Ndola Lime Company Limited and lime stock at various mining operations to ensure they have enough stock levels for pollution control purposes in their operations.

Mr Speaker, in conclusion, allow me to state that Ndola Lime Company Limited is currently implementing a recapitalisation project which will address the many operational challenges that the company has faced in the past which include environmental issues. The project is meant to re-engineer the lime production process in line with modern technological innovations. The recapitalisation project is expected to be fully commissioned in 2012 and will increase quicklime production at Ndola Lime Company Limited to over 1,000 tonnes per day. The total investment of the project is US$62 million.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Speaker: Hon. Members are now free to ask questions on points of clarification on the ministerial statement given by the hon. Minister of Tourism, Environment and Natural Resources.

Mr C. K. B. Banda, SC. (Chasefu): Mr Speaker, in recapitalising Ndola Lime Company Limited, will the Government invite private investors or it will provide the necessary funding itself?

Mr M. B. Mwale: Mr Speaker, what should be understood is that Ndola Lime Company Limited is a business entity and has to come up with business models of its own to ensure that the recapitalisation project is successful. It has to be understood that before inviting any other partners, Ndola Lime Company Limited has to enhance its value so that the Zambian people can see that their property has some value.

I thank you, Sir.

Mr Chongo (Mwense): Mr Speaker, in the event that the lime dust capturing system is suffocated or inactivated, has your ministry determined how this material can be converted into some other usable product as the case is with sulphur dioxide which is converted into acid so that the environment is not polluted?

Mr M. B. Mwale: Mr Speaker, the only point that has to be understood is that, in this case, we are talking about dust particles and, as far as we know, there is no technology that can usefully use these emissions.

I thank you, Sir.

Mr Kambwili (Roan): Mr Speaker, while appreciating the steps taken by the Zambia Environmental Management Agency (ZEMA) to save lives in other mining townships, may I find out if the Government has any intentions to conduct random pneumoconiosis examination for the people who live within the perimeter of Ndola Lime Company Limited, especially those in Ndeke.

Mr M. B. Mwale: Mr Speaker, this Government is running a very efficient health system. Anyone who may develop some complaints is free to utilise any of our medical services.

I thank you, Sir.

Mr Milupi (Luena): Madam Speaker, ZEMA is to be congratulated on enforcing regulations to protect the environment. However, under what circumstances, will ZEMA be overridden? In this particular matter ZEMA’s decision was overridden because Chambishi Mines had underestimated the amount of lime it had in stock. Under what other circumstances will this management agency be overridden by this Government?

Mr M. B. Mwale: Mr Speaker, the only time that ZEMA can be overruled is where there is a serious threat to human life where we feel if we do not supply lime, life will be endangered. As correctly cited, in our mining operations, if we do not have lime, there will be serious pollution. This is why we had to engage ZEMA to ensure that our mining companies are continuously supplied with lime so that pollution is not exacerbated.

I thank you, Sir.

Mr Lumba (Solwezi Central): Mr Speaker, what measures will the Government take to ensure that there is a continuous supply of lime should Ndola Lime Company Limited be shut?

Mr M. B. Mwale: Mr Speaker, in my statement, I indicated that we are recapitalising Ndola Lime Company Limited to ensure that, in line with new technological advances, we have new kilns installed at the plant so that the mining operations are assured of adequate supply of lime and there is some for export.

I thank you, Sir.

Mr Mushili (Nodal Central): Mr Speaker, for how long has Ndola Lime Company Limited been carrying out the maintenance of the kilns, which they said, upon replacement at the cost of US$65 million, would reduce the emissions which have endangered the lives of the people of Ndola and their property?

Mr M. B. Mwale: Mr Speaker, my appeal to the hon. Member for Ndola Central is that he listens very attentively to figures that are read out in this House. In my statement, I did not mention US$65 million, but US$62 million.

Mr Speaker, the project of recapitalising Ndola Lime Company Limited has been going on for the past few years and we are very certain, as a Government, that it will come to fruition in the near future. This is being driven by the fact that we would like to see that, before any other path is thought of by this Government, the value of that plant is raised.

I thank you, Sir.

Mr Habeenzu (Chikankata): Mr Speaker, my question has been overtaken by events, but I will ask one anyway.

Laughter

Mr Habeenzu: In the process of renovating Ndola Lime Company Limited, obviously, the workers have been affected. Does the Government have any plans to help the workers at this company?

Mr M. B. Mwale: Mr Speaker, the hon. Member for Chikankata truly did not have a question to ask.

Hon. MMD Member: Yes!

Mr M. B. Mwale: As far as we know, the employees of Ndola Lime Company Limited have continued to be in employment. They have not been affected in any way.

Mr Speaker, I thank you.

Mr Msichili (Kabushi): Mr Speaker, despite the suspension of the permit by the agency, it was reported in one of the daily papers that the operations had not stopped. I would like to find out from the hon. Minister who is telling the truth.

Interruptions

Mr M. B. Mwale: Mr Speaker, I will indulge the hon. Member for Kabushi because he probably just walked into the House.

Laughter

Mr M. B. Mwale: In my statement, I clearly stated that the company’s operations resumed on 13th June, 2011 and, as a precautionary measure, Ndola Lime Company Limited was instructed to reduce production from 55 tonnes to 48 tonnes of lime per hour.

Mr Speaker, I thank you.  

Mr Chanda (Kankoyo): Mr Speaker, I would like to find out from the hon. Minister what major health complications can arise from lime emissions. 

Mr M. B. Mwale: Mr Speaker, primarily, very fine lime dust emissions may give rise to a condition called silicosis.

I thank you, Sir.

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HIS HONOUR THE VICE-PRESIDENT’S QUESTION TIME

Mr Mooya (Moomba): Mr Speaker, a new Al-Qaeda leader has been appointed. May I know the Government’s reaction to this development?

Laughter

Hon. UPND Member: Is he the brother?

Laughter

The Vice-President and Minister of Justice (Mr Kunda, SC.): Mr Speaker, I wish to thank the hon. Member for that information. I know that you are talking about terrorism. All I can say is that, in Zambia, we have an anti-terrorism legislation and all measures are in place to ensure that we have a safe environment.

I thank you, Sir.

Mr Kakoma (Zambezi West): Mr Speaker, following His Honour the Vice-President and Minister of Justice’s indication that Parliament will adjourn sine die on Friday next week, I would like to find out from him when Parliament will be dissolved and when the Local Government Parliamentary and Presidential Elections are likely to be held.

Hon. Opposition Members: Hear, hear!

The Vice-President and Minister of Justice: Mr Speaker, that is the prerogative of the President. I am not privy to that information. However, I can assure the hon. Members that, this year, we are going to have elections and, definitely, the National Assembly will be dissolved. This is the only assurance I can give.

I thank you, Sir.

Laughter 
 
Mr Kambwili (Roan): Mr Speaker, I would like to find out from the His Honour the Vice-President and Minister of Justice when the Ndola Lime Company Limited employees will be paid their dues. The receiver of Roan Antelope Mining Corporation of Zambia (RAMCOZ) owes Mpelembe Drilling K2.8 billion.

Mr Speaker, people are suffering. They cannot take their children to school as a result of non-payment of their money for the last six years. May I know when this Government will make the receiver, the Administrator-General, release the money for the employees to be paid?

The Vice-President and Minister of Justice: Mr Speaker, the hon. Member’s question is not clear. He is talking about Ndola Lime Company Limited and RAMCOZ and I am not sure which is which. I do not think that there is any problem at Ndola Lime Comapny Limited.

However, for RAMCOZ, the receiver is taking care of the issues he has raised.

Mr Speaker, I thank you.

Hon. Opposition Members: Aah!

Mr Zulu (Bwana Mkubwa): Mr Speaker, last week, the International Monetary Fund (IMF) announced that Zambia had been rated among the top four high performing countries in Africa.

Interruptions

Mr Zulu: I would like to find out from His Honour the Vice-President and Minister of Justice what this means for the people of Bwana Mkubwa, in particular, and the people of Zambia in general.

Hon. Opposition Members: Hear, hear!

The Vice-President and Minister of Justice: Mr Speaker, international organisations such as the World Bank and IMF have been showering accolades on us for our performance. We have received a positive credit rating of B+. Even Mrs Clinton made similar remarks about Zambia’s economic performance when she came here.

This means that we are creating employment for the people of Bwana Mkubwa in particular and Zambia, in general, through construction and various economic activities and infrastructure development. It also means that we have sufficient food for our people through bumper harvests. We are also encouraging our people to grow more food. These are positive indicators for the economy.

A lot of people have confidence that we will attract more investment as we go along, especially in the next five years when we win the elections. We have a development plan and will continue developing the country.

I thank you, Sir.

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

Mr Beene (Itezhi-tezhi): His Excellency the President will flag off the construction of the Itezhi-tezhi Power Station any time from now. Unfortunately, the road leading to that place has turned into a bush path because it has not been maintained by this Government. What plans does the Government have to work on that road for the safety of the contractors and people of that area?

The Vice-President and Minister of Justice: Mr Speaker, this clearly shows that the hon. Member does not visit his constituency regularly.

Laughter

The Vice-President and Minister of Justice: The information we have is that the Zambia National Service (ZNS) is on the ground, working on that road. Indeed, we want to develop and provide power because the economy is expanding at a very fast rate.

Laughter

The Vice-President and Minister of Justice: Therefore, we want to provide power to the mining sector and for industrial development. We are committed to developing the Itezhi-tezhi Power Station and we will work on the road. Therefore, please, visit your constituency, otherwise you will not win the elections.

I thank you, Mr Speaker.

Laughter

Hon. Government Members: Hear, hear!

Mr Lumba (Solwezi Central): Mr Speaker, maize was exported because of the so-called bumper harvest. Can His Honour the Vice-President and Minister of Justice confirm that by exporting maize at less than the production cost, we are subsidising foreign nationals?

Hon. Opposition Members: Hear, hear!

Interruptions

Mr Speaker: Please, pay attention.

The Vice-President and Minister of Justice: Mr Speaker, we are subsidising maize production because we do not want hunger in this country.

Mr Shawa: Hear, hear!

The Vice-President and Minister of Justice: Our farmers have risen to the challenge and are benefiting from the subsidies. What is of primary importance for us is to ensure that there is food security in the country and we have achieved that. That said, we also have to export the surplus maize. There is no alternative to that. Primarily, we want to eliminate hunger and the situation, in the past, where we would import yellow maize. Therefore, it is for the benefit of the poor people, especially those in rural areas. Those are the people we are targeting and they are benefiting from the subsidies of maize production and other crops.

I thank you, Sir.

Mr C. K. B. Banda, SC. (Chasefu): Mr Speaker, there was pomp and splendour at the commissioning of the construction of the 84 km stretch of the road between Chipata and Lundazi this year. I was there four days ago and saw that a lot of equipment had been removed from that road. Can His Honour the Vice-President and Minister of Justice assure us that construction of this road will be completed before the onset of the rains?

The Vice-President and Minister of Justice: Mr Speaker, we are committed to that project but, of course, I have taken note of the other issues you have raised and will look into them. That is our stronghold so, …

Laughter

The Vice-President and Minister of Justice: … we will not leave any stone unturned. We will move in and ensure that the road is completed.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Interruptions

Mr Speaker: Order!

Mrs Banda (Chililabombwe): Mr Speaker, was the Government not aware that the eclipse of the moon was going to take place this week because there was no publicity?

Interruptions

Mr Mwiimbu: They had no idea!

The Vice-President and Minister of Justice: Mr Speaker, we know about those things.

Laughter

The Vice-President and Minister of Justice: It was widely publicised and I am surprised that she has asked that question because even your president in this House, Dr Scott, mentioned it in this House. Therefore, what are you talking about?

I thank you, Sir.

Laughter

Mr Mwiimbu (Monze Central): Mr Speaker, …

Interruptions

Mr Speaker: Order!

Mr Mwiimbu: … the chaotic voters’ verification exercise ended on 12th June, 2011. However, there are still a lot of anomalies that have not been corrected by the Electoral Commission of Zambia (ECZ). His Honour the Vice-President and Minister of Justice is aware that a credible electoral process can only be accepted and take place in a country if the verification exercise is credible. What measures is the Government putting in place to ensure that all the anomalies that are still obtaining on the voters’ registers are corrected before the elections take place in this country?

The Vice-President and Minister of Justice: Mr Speaker, as per our standard practice, the reason for that verification is for us to eliminate all the anomalies in the register. It is normal that some anomalies were discovered because that is the purpose of the exercise. I do not agree with you that the verification exercise was chaotic like you have suggested. Mistakes have been identified because that was the purpose. The ECZ, I believe, is working hard to rectify all those anomalies because that was the purpose of the exercise. Citizens went to their registration centres to check their particulars and those anomalies which have been identified will be rectified.

I thank you, Sir.

Mr Kapeya (Mpika Central): Mr Speaker, why has the Government chosen to continue running the Zambia National Broadcasting Corporation (ZNBC) without a board ever since the last board was dissolved in December, 2010 instead of bringing names of the new board for ratification to Parliament? In the absence of a board, may I find out from the Government who has allowed the ZNBC to start spending public funds since it is the board that approves its budget, as indicated in Section 13 of the ZNBC Act?

Hon. Opposition Members: Hear, hear!

The Vice-President and Minister of Justice: Mr Speaker, the process of constituting the board in accordance with the law which we passed in this House is on-going and we should conclude that exercise in the near future. As regards the expenditure and running of the corporation, indeed, the management is efficiently running the ZNBC.

Hon. Government Member: Hear, hear!

The Vice-President and Minister of Justice: We can see programmes where development is being shown on the ZNBC …

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Justice: … and popular programmes such as Stand Up For Zambia.

I thank you, Mr Speaker.

Laughter

Hon. Government Members: Hear, hear!

Mr Speaker: The hon. Member of Parliament for Mandevu is not in the House.

Mr Syakalima: She did not indicate.

Mr Speaker: She did.

Mr Nkombo (Mazabuka Central): Mr Speaker, the people of Mazabuka advised me to ask the question that I am going to ask today. The people of that constituency are still nursing the emotional wounds that were inflicted on them as a result of the deaths that were caused by the stampede that your agent, the Zambia Police Force, created in Mazabuka in March, 2011. Subsequently, they are also nursing serious emotional wounds as a result of the indiscriminate gun shots that resulted into the killing of two other innocent people. According to the promises made by the Government, if the investigations have been concluded, the people there are in demand of the names of the two police officers who shot the last two victims of that ordeal in March this year. They were also promised …

Mr Speaker: Order! You are wasting so much time, ask your question.

Mr Nkombo: Mr Speaker, the people would like to know the names of the officers who killed the innocent people in Mazabuka, if the investigations have been concluded.

The Vice-President and Minister of Justice: Mr Speaker, that was a very sad episode. We regret that such an incident happened. This is a matter which we have been investigating. At the moment, we have not determined who was responsible for the shootings. However, it is a matter that we are still looking into.

I thank you, Sir.

Mr Mwango (Kanchibiya): Mr Speaker, civil servants are not supposed to engage in active partisan politics. May I know why some civil servants such as district commissioners and permanent secretaries, who have applied for adoption to contest parliamentary seats in the forthcoming elections, have not been fired from the Civil Service.

The Vice-President and Minister of Justice: Mr Speaker, there are provisions in the Government Service that regulate matters of that nature. If a civil servant wants to go into politics, the law states clearly that he has to resign. The law will catch up with those who are participating in partisan politics while holding on to Civil Service positions.

I thank you, Sir.

Mr Syakalima (Siavonga): Mr Speaker, I would like to find out from His Honour, the Vice-President and Minister of Justice whether, in the last ten years, as a Government, and he, himself, in particular, as a normal human being, thinks the IMF B+ rating of economic performance could have gone to an A+? Also, have you been frustrated, as a Government, that you have not achieved much in the last ten years, vis-á-vis the Bottom Road we have been talking about and which you have not started constructing?

Interruptions

Mr Muyanda: Yes!

Mr Speaker: Order!

That question is not yours, do not take credit for it.

Laughter

The Vice-President and Minister of Justice: Mr Speaker, a B+ is an excellent rating. It is commendable and attributed to the hard work of the people of Zambia and also the prudent economic management by this Government. Countries such as Angola, Kenya, and Ghana have attained the same rating.

Hon. Members: Hear, hear!

The Vice-President and Minister of Justice: Therefore, it is a very good one. As regards the Bottom Road, I have personally inspected its state. I am not like some of the hon. Members who do not visit their constituencies.

Laughter

The Vice-President and Minister of Justice: We have programmes for such infrastructure and it is in our interest that we work on these roads.

I thank you, Sir.

Hon. Members: Hear, hear!

Mr Mwenya (Nkana): Mr Speaker, Zimbabwe Iron and Steel Company (ZISCO) is still a Zimbabwean parastatal. At one time, it bought Monarch Steel Zambia Limited and operated it for over five years. During that period, workers were ill-treated and not paid. The company was later sold to a Chinese company. Despite being paid in full by the Chinese company that bought it, ZISCO remitted all the funds to Zimbabwe and disappeared without paying the Zambian workers. The Ministry of Labour and Social Security is aware of this issue, but nothing has been done about it. I would like to find out from His Honour the Vice-President and Minister of Justice what efforts are being made to pay the workers who have been languishing for the past three years.

The Vice-President and Minister of Justice: Mr Speaker, as the hon. Member has rightly pointed out, that is a labour matter and the Ministry of Labour and Social Security is addressing it. As a Government, we are concerned about situations of that nature because we want our workers to be paid whatever dues are owed to them. Having been brought to the attention of the Ministry of Labour and Social Security, it is a matter that can be looked into.

I thank you, Sir.

Mr Speaker: Order! Stop the clock!

Hon. Members must remember what we learned behind the scenes. One of those issues is how better to ask questions. If you stand up and tell a story, especially with the clock ticking, you will consume time meant for two other hon. Members who would have wished to ask questions on behalf of their electorate. When asking a question, do not recap what the hon. Minister or His Honour the Vice-President and Minister of Justice said. Do not say, “I heard you say …” or “What does he mean by that?” Go straight to the point to save time.

I see a number of hon. Members wish to ask questions. They may not have the opportunity to do so from what I can see now.

Mrs Chitika-Molobeka (Kawambwa): Mr Speaker, the current road rehabilitation in Lusaka and the Copperbelt has cheered many people and they are saying the Movement for Multi-party Democracy (MMD) Government should go beyond 2012.

Hon. Members: Hear, hear!

Mrs Chitika-Molobeka: I would like His Honour the Vice-President and Minister of Justice to confirm that they shall work hard so that the Kawambwa-Mansa Road can also be tarred beyond 2012.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Justice: Mr Speaker, we shall work on as many roads as we can and, as you have rightly pointed out, the people of Zambia are very happy. We have explained our programme. They have been crying for good roads and, as a listening Government, we have responded and shall continue to address the needs of our people.

I thank you, Sir.

Mr Milupi (Luena): Mr Speaker, the constitutional requirement for a person to qualify to contest as Republican President, according to Article 34 (3b), is that both the parents of that person must be citizens of this country by birth or descent. There has been a raging debate concerning His Excellency the President, Mr Rupiah Banda’s father’s area of birth. Why has His Honour the Vice-President and Minister of Justice not come to this House to issue a statement to clarify this matter for this country once and for all?

Mr Muteteka: You are from Angola!

The Vice-President and Minister of Justice: Mr Speaker, the Zambian President, His Excellency the President, Mr Rupiah Bwezani Banda, qualifies to stand as a candidate for the Office of President. He is Zambian and both his parents are Zambians by birth or descent. That is a factual situation which has been explained.

Hon. Members: Hear, hear!

The Vice-President and Minister of Justice: In any case, he has been providing leadership to this country, and very well for that matter.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Chanda (Kankoyo): Sir, subsequent to the letter I wrote to His Honour the Vice-President and Minister of Justice on the Government’s giving of housing stock to the people of Butondo and Kankoyo, which was done, may I know when these people will be issued with title deeds.

The Vice-President and Minister of Justice: The hon. Member wants to claim credit for that …

Laughter

The Vice-President and Minister of Justice: … Government initiative. This was done under the Government’s Housing Empowerment Scheme and we shall issue title deeds to those people. It is the President who has given the houses to deserving Zambians. We acknowledge that the hon. Member wrote the letter he has talked about. However, we also knew that there were houses in that area. It is part of our programme to empower our citizens with housing and we have done exactly that.

I thank you, Sir.

Mr Msichili (Kabushi): Mr Speaker, talking about houses, recently, the President was on the Copperbelt empowering residents with houses. He further instructed institutions such as the National Pension Scheme Authority (NAPSA) to lower the purchase price of houses to sitting tenants. I would like to find out from His Honour the Vice-President and Minister of Justice why this instruction has not been adhered to, to date, and when it will be effected.

The Vice-President and Minister of Justice: Mr Speaker, I believe that a presidential directive should be adhered to and will be adhered to. We will follow up the matter and if there is any specific institution the hon. Member has in mind, he should let me have the information thereon so that we can follow it up. We want to empower citizens with housing.

I thank you, Sir.

Mr Chisala (Chilubi): Mr Speaker, Chilubi and Mungwi are the only districts in the Northern Province which have no district hospitals. I would like to find out when the Government will construct the health institutions in question.

The Vice-President and Minister of Justice: Mr Speaker, we shall continue with our Infrastructure Development Programme. We have just put in place the Sixth National Development Plan (SNDP) for the next five years. We shall implement that plan, which includes construction of hospitals. The hon. Minister of Health is here and is taking note of that. The hon. Member should formalise it by following it up with a letter so that we can include that specific project in our plan. We work according to plans because we believe in development planning.

I thank you, Mr Speaker.

Mr Lubinda (Kabwata): Sir, may His Honour the Vice-President and Minister of Justice indicate to this House why his Government has lamentably failed to resuscitate the operations of the Mulungushi Commuter train and decongest the city of Lusaka despite the World Bank having given the no-objection and this House having passed the Motion thereon successfully.

The Vice-President and Minister of Justice: Mr Speaker, I understand that particular project has been advertised and the hon. Member has seen those advertisements. We are looking for a contractor and service provider so that, as he has said, we can decongest the city in addition to other efforts we are making to enable the people to travel efficiently and in comfort within the city of Lusaka.

I thank you, Mr Speaker.

Mr Ntundu (Gwembe): Mr Speaker, may I find out from His Honour the Vice-President and Minister of Justice why the United States Dollar to Kwacha exchange rate is still high, at K4,880, despite the copper prices being reasonably high at the moment.

Mr Speaker: His Honour the Vice-President and Minister of Justice will complete the answer.

The Vice-President and Minister of Justice: Mr Speaker, what is important is stability of the currency. The rate at that level is very conducive for exports.

I thank you, Mr Speaker.

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

QUESTIONS FOR ORAL ANSWER

FILLING STATIONS AND FUEL FUMES

521. Mr Simama (Kalulushi) asked the Minister of Energy and Water Development what measures had been taken to ensure that fuel filling stations do not emit fumes in the atmosphere and hence contribute to the heating of the ozone layer.

The Deputy Minister of Energy and Water and Development (Mr Imasiku): Mr Speaker, fumes emitted at filling stations are classified as volatile organic compounds (VOCs). These fumes can contribute indirectly to the depletion of the ozone layer. Fuel fumes are emitted into the atmosphere while refuelling a car and from spillage into the underground during the offloading of fuel tankers at filling stations. In other instances, fumes can also be emitted from leaks resulting from faulty equipment.

Mr Speaker, I wish to inform the hon. Member of Parliament that technical standards for the energy sector have been developed by the Zambia Bureau of Standards (ZABS) in collaboration with the Energy Regulation Board (ERB) and other stakeholders. Currently, the standard that guides the construction of filling stations requires, amongst others, that designs incorporate leak detection mechanisms for the underground tanks and oil spillage containment in the form of drainage and oil interceptors. This requirement is aimed at reducing environmental pollution caused by leaks and spillages.

Another requirement currently being enforced is that prior to the construction of a filling station, developers submit an Environmental Project Brief (EPB) to the Zambia Environmental Management Agency (ZEMA) for approval. The EPB must address environmental impacts of the project, including emissions of fumes at filling stations and how these will be managed.

However, in its current form, there is no standard that requires zero emission of fumes at filling stations in the atmosphere. In order to address this challenge, there is a need for investment in latest technology which involves the installation of vapour recovery systems at every filling station and other fuel storage facilities. Preliminary research into this subject has revealed that in countries where this technology has been applied, such as the United Kingdom, a phased approach was adopted. In the initial roll out of this technology, only filling stations which dispensed large volumes of fuel in excess of 3.5 million litres a month had the systems installed.

Further, the petroleum standards have been in existence for over five years and will soon be reviewed according to prescribed standards developmental procedure. This review will consider the latest developments in technology for the fuel industry. The technology for vapor recovery systems could also be considered as part of this review process. However, an appropriate legal framework is required for this undertaking.

I thank you, Mr Speaker.    

Mr Nkombo (Mazabuka Central): Mr Speaker, I thank the hon. Minister for the response regarding the measures the Government has taken to deal with the fumes that are emitted into the ozone layer. I would like to find out from the hon. Minister what the Government is currently doing to stop traders from selling fuel in undesignated places such as roadsides. To be specific, in Mwinilunga, there is a place called Kabandayujima where people sell fuel from jerrycans because of a lack of filling stations there.

Mr Imasiku: Mr Speaker, we are not aware of such illegal activities taking place. Since you have informed us about them, we will inform the relevant authorities so that appropriate action can be taken.

I thank you, Sir.

NORTHERN PROVINCE SCHOOLS

522. Mr Chisala (Chilubi) asked the Minister of Education:

(a)  how many new schools were opened in the Northern Province from 2008 to 2010, district by district; and

(b)  how many community schools were converted into conventional schools by the Government during the same period.

The Deputy Minister of Education (Dr Kawimbe): Mr Speaker, there were eighty-six new schools opened in the Northern Province from 2008 to 2010, district by district as follows:

District No. of Schools

Chilubi 11
Chinsali 7
Kasama 6
Kaputa 9
Luwingu 6
Isoka 6
Mbala 7
Mpika 6
Mungwi 9
Mporokoso 6
Mpulungu 7
Nakonde 6
Total 86

Mr Speaker, sixty community schools were converted into conventional schools by the Government between 2008 and 2010.

I thank you, Sir.

Mr Chisala: Mr Speaker, since the running of learning institutions is the responsibility of the Government, may I know why the Government has delayed in taking over the running of a number of community schools.

Dr Kawimbe: Madam Speaker, the setting up of community schools is an initiative of the communities and, as a Government, we have no direct control over how it is done. However, we appreciate the efforts of our people who want to make their children receive good education. As a ministry, we do not only wait to assume the responsibility of supporting community schools after turning them into Government schools. Even before we convert them into Government schools, we provide teaching and learning materials wherever possible. For instance, we have just recruited 5,000 new teachers and some of those trained teachers will be going to those community schools before the Government eventually takes them over. Our plan is to eventually turn all community schools into Government schools.

Hon. Government Member: Hear, hear!

Dr Kawimbe: As we spread and bring education closer to the communities where our people live, we will see a situation where there will be no need for the communities to establish community schools.

I thank you, Sir.

TEACHERS’ HOUSES CONSTRUCTION

523. Mr Chisala asked the Minister of Education:

(a) how many teachers’ houses were earmarked for construction from 2008 to 2010, countrywide; and

(b)  how many such houses have since been completed.

Dr Kawimbe: Mr Speaker, teachers’ houses in basic schools that were earmarked for construction from 2008 to 2010, countrywide, were as follows:

Year Number of Houses

2008 369 
2009 280
2010 239

Mr Speaker, the targeted number of houses for 2008 and 2009 have been completed while the two hundred and thirty-nine houses which were earmarked for construction during 2010 have not yet been constructed due to delayed funding from the co-operating partners. However, the ministry plans to budget for the completion of the 239 houses in the 2012 budget.

I thank you, Sir.

Mr Chisala: Mr Speaker, despite the Government releasing funds towards the construction of staff houses in Chilubi in 2009, the houses have not been constructed at Kanshishye, Lukaki and Chinkumbi schools. I would like to find out why the Government has lamentably failed to make a follow up on this issue.

Dr Kawimbe: Mr Speaker, if I heard the hon. Member correctly, funding to construct those schools was apparently released. We are happy to learn that the money was released. Therefore, the problem is definitely not at the centre, but at the periphery. However, I am grateful that the hon. Member has brought that issue to our attention. We will make follow ups on that matter.

I thank you, Sir.

Dr Machungwa (Luapula): Mr Speaker, the Government has constructed many classrooms across the country during the period in question, and yet the number of houses that are earmarked for construction are considerably very small. Why is there such a disparity? Why does the Government not put aside more resources for building enough houses that will be commensurate to the number of teachers it expects to recruit to man all the classrooms that have been built across the country?

Dr Kawimbe: Mr Speaker, as a ministry, we also agree with his observation that the provision of teacher’s houses has fallen behind the expansion of other infrastructure such as classrooms. As the hon. Member may be aware, we have just recruited 5,000 teachers. As a ministry, our next highest priority will be the provision of institutional accommodation for our teachers.

I thank you, Sir.

Mrs Phiri (Munali): Mr Speaker, when this Government started asking donors to pack up and go, did it have an alternative source of funding for the Ministry of Education?

Dr Kawimbe: As a ministry and Government, we believe that there are certain principles that are very important for us. When we have differences of opinion with our co-operating partners, we will not sacrifice what we stand for, as a Government, just for the sake of aid. We will not accept aid at all costs, but will accept aid when it is in line with what we believe in as a country.

I thank you, Sir.

Mr Mwenya (Nkana): Mr Speaker, of the many houses that have been said to be constructed and the remaining 239 to be constructed, how many are earmarked for Kitwe?

Dr Kawimbe: Mr Speaker, our plan for 2012 and beyond is to ensure that all teachers are decently accommodated. A teacher who is not properly accommodated cannot be expected to give the best in terms of teaching our children. We will make sure that the constituency of Hon. Mwenya in Kitwe is covered by that programme.

I thank you, Sir.

Mr C. K. B. Banda, SC. (Chasefu): Mr Speaker, five teachers’ houses at Umi Basic School in Lundazi Constituency and five teachers’ houses at Kapekesa Basic School in Chasefu Constituency were earmarked for construction in 2008, but soon after the construction works were started by a company called Gabman, the projects were abandoned. To date, construction works are not taking place at the site and the projects have been abandoned. I would like to find out when the Government will wake up to reality and start building these houses.

Dr Kawimbe: Mr Speaker, the contractor in question has failed us, as a ministry, even in other parts of the country and this matter is currently receiving our serious attention.

I thank you, Sir.

TEACHERS’SALARY ARREARS

524. Mr Mwango (Kanchibiya) on behalf of Mr D. Mwila (Chipili) asked the Minister of Education:

(a) how much money, in the form of salary arrears, was owed to teachers countrywide as of 31st March, 2011;

(b) how the salary arrears arose;

(c) when the arrears above would be paid; and

(d) what caused the delay in paying the arrears.

Dr Kawimbe: Mr Speaker, salary arrears owed to teachers by 31st March, 2011 stood at K46,756,127,400. The arrears arose as a result promotions. When teachers are officially promoted, they are paid in arrears, backdated to the time they started acting.

The transfer of teachers from urban to rural areas also automatically attracts a rural hardship allowance, which may take sometime to be effected on the payroll. It used to take time to put teachers who were recruited on the Payroll Management and Establishment Control (PMEC) system. This also led to the ministry accruing salary arrears.

Another cause to the problem is that when some teachers who have attained certain qualifications apply for the upgrading of their salaries, it normally takes time for the changes to be effected.

Mr Speaker, as soon as funds are made available, the arrears will be paid. So far, K30 billion has been released for the payment of various arrears owed to our teachers. Budgetary constraints are behind our failure to settle the arrears.

Mr Speaker, I thank you.

Mr Mwango: Mr Speaker, how many teachers does the Government still owe money countrywide?

Dr Kawimbe: Mr Speaker, as I indicated earlier, K30 billion has been released towards the clearing of these arrears. This means that the statistics are very dynamic. If you really want us to give specific statistics, you need to ask us a separate question and also give us time for the data you are interested in to be collected.

I thank you, Sir.

MALARIA IN KANYAMA CONSTITUENCY

525. Colonel Chanda (Kanyama) asked the Minister of Health:

(a) how the country managed to scale down the prevalence of malaria in Zambia by over  60 per cent between March, 2010 and March, 2011 as reported in the media;

(b) whether this achievement is sustainable and, if so, how;

(c) what the rate of the decline in the prevalence in Kanyama Parliamentary Constituency, if any, was and if there was none, why; and

(d) what measures had been taken to ensure a drastic decline in incidences of malaria in Kanyama Parliamentary Constituency.

The Deputy Minister of Health (Dr Kalila): Mr Speaker, Zambia made great progress in its fight against malaria by increasing coverage of all malaria control services. These include the prevention through the use of insecticide treated nets, indoor residual spraying (IRS), intermittent presumptive treatment for pregnant women. They also include the management of malaria cases using efficacious anti-malarial artemisinin-based combination therapy (ACT) drugs coupled with definitive diagnosis, using rapid diagnostic tests and microscopy. The uptake of these interventions by the community members have been enhanced by an interactive information education and communication strategy.

Mr Speaker, results from the 2010 National Malaria Indicator Survey show that ACTs increased dramatically since 2008. The IRS activities have also expanded into more rural malaria-prone areas of the country. Combined insecticide treated nets and IRS coverage continue to increase while malaria deaths reported from health facilities in Zambia have declined by 66 per cent. This result, along with other supporting data, indicates that Zambia has reached the 2010 Roll Back Malaria target of reducing malaria mortality by more than 50 per cent when compared to 2000.

Mr Speaker, the current gains in this fight against malaria in the country have great potential of being sustained and scaled up, largely due to the political will that this Zambian Government has demonstrated on this cause. These efforts are being supplemented by a strong partnership with multilateral, bilateral profit and non-profit non-governmental organisations (NGOs) and the private sector.

Mr Speaker, according to the 2010 National Malaria Indicator Survey, the malaria parasite prevalence in children under the age of five years in Lusaka Province has reduced to less than 1 per cent from 2005. A steady decline of malaria incidences was recorded in the Kanyama Health Centre catchment area. However, an increase in the malaria incidence rates was recorded between 2009 and 2010. This increase was partly due to the high rainfall received during this period that resulted in the proliferation of major malaria vectors and the inherent resurgence of malaria cases. On the other hand, the increase in transmission could be attributed to the unchecked imported malaria cases from high transmission areas of the country that could act as an active reservoir of the malaria parasites.

Lastly, to combat the increasing malaria transmission levels in Kanyama Constituency, preventive measures that include IRS, insecticide treated nets, intermittent presumptive treatment of pregnant women and environmental management have been scaled up in the area. Early diagnosis and treatment has also been strengthened through the active malaria case detection being conducted in the area. To increase the malaria control interventions, community involvement in sensitisation campaigns have been enhanced.

Mr Speaker, I thank you.

Colonel Chanda: Mr Speaker, the hon. Minister has mentioned the fact that in-door residual spraying has contributed to the reduction of the incidence of malaria in many parts of the country, Kanyama inclusive. Is it possible that the ministry could consider extending this phenomenon to outside residual spraying by virtue of the massive stagnation of water in the Kanyama Catchment area?

The Minister of Health (Mr Simbao): Mr Speaker, at the moment, the ministry is running a programme which is targeting to eliminate the vector, which is the mosquito. There is a health team in place which is going round the country spraying all the lava sites for mosquitoes. This is being done so that, in future, we may not see any mosquitoes.

Sir, the experience, this year, has been that there has not been the usual cry, in Lusaka, about malaria because, using planes, we flew over Lusaka and sprayed all the areas we thought to be breeding points for mosquitoes. Therefore, this particular issue that the hon. Member has raised is being addressed very effectively by this Government.

Mr Speaker, the programme will come to an end, maybe, this year. At this point, we will be able to see the results of the activity and resume spraying lava sites for mosquitoes if not successful. We have a separate programme apart from the indoor residual spraying which targets the breeding grounds for mosquitoes.

I thank you, Sir.

Dr Machungwa: Mr Speaker, can the hon. Minister state if any of these programmes have been extended to Luapula Constituency, especially in the Bangweulu Swamps, because I have not seen any there?

Mr Simbao: Mr Speaker, these programmes have been carried out in all areas in Zambia, including the Bangweulu Swamps. The distribution of nets, however, is done at health facilities. The Anglican Church, especially in Luapula, has also helped in distributing the mosquito nets.

Mr Speaker, the hon. Member may also wish to know that the distribution exercise of mosquito nets has just ended in the Luapula Province. About 1,200,000 were distributed there because there was a resumption of malaria cases.

Hon. Opposition Members: Aah!

Mr Simbao: The ministry also distributed 980,000 mosquito nets in the Northern Province because of the increase of malaria cases. If no mosquito nets have been distributed to the Bangweulu Swamps, it means there is no malaria in the area. Otherwise, the whole country has been covered.

I thank you, Sir.

Dr Katema (Chingola): Mr Speaker, elimination of the vector is very cardinal. Therefore, may I find out why the ministry has embarked on spraying of the lava rather than getting rid of the breeding ponds by improving drainages in Kanyama Constituency, which is a cheaper way.

Mr Simbao: If the hon. Member for Chingola happened to visit Kanyama, he would find that the council is very busy constructing drainages.

Colonel Chanda: Where?

Mr Simbao: You should visit Kanyama. Do not just ask where. This is a continuous programme. Kanyama is not a simple place to deal with in terms of constructing a proper drainage system and I hope the hon. Member knows that. The rock that underlies the earth is very near the surface. The area hon. Member of Parliament also knows that the Government carried out a lot of work in trying to break the rock. Since I always visit the health facility there, I know that there is a very good drainage system from the main road leading to the health facility. I can only ask the hon. Member for Kanyama, maybe, to ask for information about the underlying rock from the relevant authorities.

Sir, owing to this rock, initially, there were some suggestions that, maybe, the people be moved. This Government decided not to go that way, but, instead, opted to make it habitable by providing what is expected of the people of Zambia.

I thank you, Sir.{mospagebreak}

SAFE DRINKING WATER IN ZAMBIA

526. Mr Mwenya asked the Minister of Local Government and Housing:

(a) what percentage of the Zambian population had access to safe drinking water;

(b) what targets for achieving safe drinking water for all had been set for the Fifth National Development Plan (FNDP);

(c) what the objective and target for the Sixth National Development Plan (SNDP) on safe drinking water countrywide was;

(d) which areas were adversely affected in terms of access to safe drinking water in Zambia; and

(e) when water was declared safe and fit for drinking and by which authority.

The Deputy Minister of Local Government and Housing (Mr Muteteka): Mr Speaker, according to the results of the Demographic Health Survey (DHS) conducted in 2007 by the Central Statistical Office (CSO), the official source for the country coverage figures for water supply and sanitation, the accessed water is as follows:

 Area Percentage 
  
 Urban 82

 Rural  20

 Total Average 42

However, data from the latest Joint Monitoring Programme Survey undertaken by the United Nations (UN) on a global level for 2008, the access to water supply is recorded as follows:

 Area Percentage

 Urban 59

 Rural 43

 Total Average 49

Mr Speaker, having observed the disparity in the reporting, my ministry has set up an information management system for the purpose of collecting up-to-date statistics through the local authorities. This system will provide coverage figures, dissolution and location of water points as well as physical status of the existing facilities both for water supply and sanitation. The provision of such information will enhance the planning process and prudent decision-making on access to safe and clean water.

Mr Speaker, during the Fifth National Development Plan (FNDP), the overall objective for the urban water supply and sanitation was to provide adequate, safe and cost-effective water supply and sanitation services through the development and provision of sustainable water and sanitation services to more people in urban and peri-urban areas through:

(i) commercialisation, private-sector participation and independent regulation;

(ii) support to the National Urban Water Supply and Sanitation in Development that focuses on enhancing institutional capacities, policy and legal frameworks and information management for planning and development at national, provincial and district level;

(iii) support to investment programmes that aim at increasing access to safe adequate water supply to 80 per cent of the urban and peri-urban population by 2010 and proper sanitation systems to 70 per cent for the urban and peri-urban population by 2010; 

(iv) involve service providers in the achievement of investment programmes;

(v) accelerate community publicity programmes and information through local authorities on boiling water or using chlorine to make water safe.

Mr Speaker, the targets for rural water supply and sanitation were to undertake the following:

(i) provide adequate, safe and cost-effective water supply and sanitation services with due regard to environmental issues;

(ii) provide adequate, safe and cost-effective water supply and sanitation services with due regard to environmental issues in the facilitation of universal access to safe, adequate and reliable water supply and sanitation services in rural areas. This is to be done through institutional support activities to facilitate more effective planning, implementation and monitoring of rural water supply, focusing on developing a supportive legal framework, institutional development, including development and implementation of appropriate capacity building at community, district, provincial and national level;

(iii) information management system, advocacy and publicity, district planning, sanitation and hygiene education operation and maintenance systems;

(iv) capital investment programmes consisting projects for the construction of new facilities and rehabilitation of facilities to secure or safeguard existing coverage, focusing on integrated rural water supply and sanitation investment projects in all provinces with priority given to extension of water and sanitation facilities and related hygiene education awareness campaigns in the presently underserved Northern, Western, Luapula and Lusaka provinces programmes for rehabilitation of existing facilities.

Mr Speaker, as the House may be aware, our vision for the water supply and sanitation sub-sector is a Zambia where all users have access to water and sanitation and utilise them in an efficient and sustainable manner for wealth creation and improved livelihood by 2030.

Our goal is to achieve 75 per cent accessibility to reliable safe water and 60 per cent adequate sanitation by 2015 in order to enhance economic growth and improve the quality of life.

In this regard, the key performance indicators, up to 2015, have been set. I have a schedule with a lot of statistical information and, with your permission, I will lay it on the Table of the House.

Mr Muteteka laid the paper on the Table.

Mr Muteteka: Mr Speaker, the accessed water by districts is presented in the table that I have laid on the Table of the House. I must also add that access to water is dynamic as it is affected by breakdown of equipment, loss of facilities due to change in salt or iron concentration and the construction of new facilities.

However, based on the table, the most adversely affected districts, in 2011, are Chilubi and Milenge with projected access of less than 30 per cent for 2011 and less than 8 per cent in the base year 2000.

Madam Speaker, this august House may wish to know that the Government, through my ministry, has since embarked on a project to drill and equip boreholes in these districts and the rest of the Northern and Luapula provinces where more than 1,500 boreholes will be constructed in 2011/2012.

Mr Speaker, lastly, water is declared safe when it meets the World Health Organisation (WHO) standards for drinking water at the time of completion of the water source. The water is tested by the contractor and approved by the Ministry of Local Government and Housing. Local district health teams and environmental teams conduct periodic water testing and sampling for water quality and management.

From time to time, the Ministry of Health also collects samples for testing to ensure that the water remains safe, especially during epidemics.

Mr Speaker, I thank you.

Mr Mwenya: Mr Speaker, currently, in the country, people are being advised to either boil or add chlorine to drinking water. Could the hon. Minister confirm that, as a nation, we have not yet reached a level of providing safe drinking water at the source of distribution.

The Minister of Local Government and Housing (Dr Chituwo): Mr Speaker, in our response, we indicated the targets we have set ourselves in the Sixth National Development Plan (SNDP). We also stated the measures that we have put in place to continuously test the water. Therefore, being a continuous process, we have not reached a stage where we can presume that all the water is safe and even when we do, it is prudent that we periodically take samples to test it so as to ensure that the safety is maintained.

Mr Speaker, I thank you.

Mr Lubinda (Kabwata): Mr Speaker, may I find out from the hon. Minister why his Government has failed to liquidate its debt to water utilities such as the Lusaka Water and Sewerage Company, thereby making it difficult for these companies to provide sewer reticulation networks to prevent a situation where a lot of the people, in areas such as the one infamously referred to as Chalala, in Kabwata Constituency, and Kamulanga, depend on septic tanks which risk contaminating underground water in an area from which we extract more than 50 per cent of the total water that is consumed in Lusaka.

Dr Chituwo: Mr Speaker, the Government is handling debt by dismantling it as and when funds are available. Our utility companies such as the Lusaka Water and Sewerage Company do not solely depend on the dismantling of the debt by the Government. We are also assisting these companies. For instance, there are proposals, at the moment, for them to access funding to improve the water supply and sanitation in the city.

Mr Speaker, it is really two-pronged where there is, on one hand, the liquidation of the debt and on the other, assistance in more investment in the area of water supply and sanitation.

Mr Speaker, I thank you.

Mr Chongo (Mwense): Mr Speaker, on the water utility in Luapula and in particular, Mwense,  how does the ministry intend to help such utilities that receive less than K3 million per month and, therefore, cannot expand the provision of water to its people?

Dr Chituwo: Mr Speaker, we are cognisant of the low income because of the low population, particularly, in rural districts. The income is raised from the supply of water and sewerage facilities. In order to assist these utility companies, we will continue to give them grants so that they can improve the facilities that have difficulties in meeting the needs of the population.

Mr Speaker, consequently, we can see a position where, as the general population increases, there will be more economic activities and more consumers in those areas but, before that, we shall continue to assist these utility companies to meet the basic needs of the residents in terms of safe water and sanitation.

I thank you, Sir.

NKANA WATER & SEWERAGE COMPANY ADB LOAN

527. Mr Mwenya asked the Minister of Local Government and Housing:

(a) what the value of the loan obtained by Nkana Water and Sewerage Company from the African Development Bank  (ADB) for the provision of water borne toilets and sewerage system was;

(b) which townships on the Copperbelt were earmarked for the above service provision; and

(c) when the entire project would be completed.

Mr Muteteka: Mr Speaker, the Government of the Republic of Zambia embarked on the preparation of a National Urban Water and Sanitation Programme (NUWSSP) which will form the basis of a unified approach for the development of water supply and sanitation services in all the country’s urban areas. The programme is scheduled to be launched by the Ministry of Local Government and Housing in June, 2011.

Sir, pursuant to the above, the Government of the Republic of Zambia has obtained financing from the ADB amounting to US$57 million for Nkana Water Supply and Sanitation Project (NWSSP). In addition to the above amount, the Government will contribute about US$6.2 million. The NUWSSP is one of the several interventions included in the NWSSP.

Mr Speaker, the project covers the entire area of operations of Nkana Water and Sewerage Company (NWSC), comprising the City of Kitwe and the towns of Kalulushi and Chambishi, all of which are within a distance of 30 km apart. The activities …

Mr Speaker: Order!

Business was suspended from 1045 hours until 1100 hours.

[THE DEPUTY CHAIRPERSON OF COMMITTEES in Chair]

Mr Muteteka: Mr Speaker, before business was suspended, I was saying that the NWSSP covers all the operations of NWSC. This project includes Kitwe, Kalulushi and Chambishi. All these towns are 30 km apart. The activities include rehabilitation of the water supply and sanitation network, solid waste management, renovation of offices and institutional support.

Mr Speaker, the project is expected to be completed in December, 2016.

I thank you, Mr Speaker.

Mr Mwenya: Mr Speaker, despite the US$57 million that has been released, we have not seen any significant works being undertaken in areas such as Buchi and Kamitondo which were highlighted for toilet rehabilitation. Could I find out what has happened to the money and why the project is now being pushed further to 2016.

Dr Chituwo: Mr Speaker, the works have actually started. In fact, one of the areas where the public-private partnerships are effective is that of toilet rehabilitation in Wusakile. There are significant works in the areas which are planned. Perhaps, I will invite my colleague to come with us on a conducted tour so that he sees the work that has already been done. This will truly meet the needs of the expanding population in Kitwe, Kalulushi and Chambishi.

I thank you, Sir.

Mr Lumba (Solwezi Central): Mr Speaker, in 2000 or 2005, the Lusaka Water and Sewerage Company got a similar loan of about US$20 million or US$21 million from the World Bank and over US$15 million of that amount was used for consultancies and not in network rehabilitation. I would like to find out how much of that US$50 million plus of this ADB loan for the NWSC will go to consultancies in terms of percentage and what will go towards the actual network rehabilitation.

Dr Chituwo: Mr Speaker, I do not have the details with me. However, the hon. Member can submit a question or if he really wants to know, we can provide him with this information at our offices.

I thank you, Sir.

Mr Lubinda: Mr Speaker, undoubtedly, there is a huge backlog of water supply throughout the country, including the Copperbelt towns. As the case has been in Lusaka, besides the ADB loans and investments from the Government, there are also other parallel investments such as the so-called Water Supply Sanitation and Drainages Programme to be financed by the Millennium Challenge Co-operation. I would like to find out from the hon. Minister whether a similar arrangement is being considered for the Copperbelt beyond the ADB financing and Government direct support.

Dr Chituwo: Mr Speaker, I do not know what the hon. Member of Parliament for Kabwata wants to know. The answer in short is, no, because as he stated, the ADB and Government have put their resources together in order to answer our residents’ needs.  At the moment, we do not have any other player on the Copperbelt unlike the case with Lusaka.

I thank you, Sir.

SADC AND COMESA SUBSCRIPTION FEES

528. Mr Mwango (on behalf of Mr D. Mwila) asked the Minister of Foreign Affairs:

(a) how much money Zambia paid to the following organisations as subscription fees from 2009 to-date:

(i) the Southern African Development Community (SADC): and

(ii) the Common Market for Eastern and Southern Africa (COMESA); and

(b) what the benefits of Zambia’s membership to both SADC and COMESA were.

The Deputy Minister of Foreign Affairs (Professor Phiri): Mr Speaker, Zambia has paid a total of US$4,438,000 to SADC towards annual member states’ contributions from 2009 to the current financial year 2011/2012, broken down as follows:

Year Amount (US$)

2009/2010 1,438,000.00
2010/2011 1,413,000.00
2011/2012 1,587,000.00

Mr Speaker, with regard to COMESA, Zambia has paid subscription fees amounting to US$1,573,624.84 from 2009 to date, broken down as follows:

Year Amount (US$)

2009 396,825.00
2010 597,048.00
2011 579,751.84

Mr Speaker, Zambia is a founding member of both SADC and COMESA. As you are aware, the headquarters of the latter is in Lusaka. As such, Zambia has derived direct benefits from its membership to both SADC and COMESA through the implementation of joint programmes that enhance regional co-operation and integration.

Mr Speaker, the objectives of SADC, as stated in Article 5 of the Treaty, remain relevant, but member states underscore the need to ensure that poverty alleviation is addressed in all SADC activities and programmes with the ultimate objective of eradicating it.

Further, HIV/AIDS is a major threat to the attainment of the objectives of SADC and is, therefore, given priority in all the SADC programmes and activities. The objectives of SADC, as stated in Article 5 of the Treaty, are to:

(i) achieve development and economic growth, alleviate poverty, enhance the standard and quality of life of the people of Southern Africa and support the socially disadvantaged through regional integration;

(ii) evolve common political values, systems and institutions;

(iii) promote and defend peace and security;

(iv) promote self-sustaining development on the basis of collective self-reliance and the interdependence of member States;

(v) achieve complementarities between national and regional strategies and programmes;

(vi) promote and maximise productive employment and utilisation of resources of the region;

(vii) achieve sustainable utilisation of natural resources and effective protection of the environment; and

(viii)  strengthen and consolidate the long-standing historical, social and cultural links among the people of the region.

Mr Speaker, with regard to SADC, Zambia has derived benefits from its membership through the implementation of joint programmes that enhance regional co-operation and integration by striving to meet its objectives listed above. In this regard, the following have been some of the obvious benefits:

(i) the launching of the SADC Free Trade Area in  2008 has not only opened up some potential markets for Zambian export products, through the enlargement of the liberalisation of trade, but has also made the conduct of business much easier than it was before, through improved trade facilitation and custom procedures. For example, Zambia has enjoyed a stable economic growth rate of 6 per cent over the past three years, partly due to initiatives such as the above mentioned;

(ii) Zambia enjoys peace and stability, partly as a result of the immense contribution that SADC has made towards the consolidation of peace, security and stability in the region;

(iii) with regard to agriculture, the implementation of the Dar-es-Salaam Declaration and Action Plan on Agriculture and Food Security as well as other strategies aimed at attaining food security at the regional level has immensely contributed to the favourable regional food security situation in Zambia. For example, selling of our excess maize stock to the Democratic Republic of Congo (DRC) and the Republic of Zimbabwe;

(iv) regarding livestock, Zambia has continued to benefit from regional efforts to control and manage trans-boundary animal diseases, in particular, foot and mouth disease (FMD), cattle lung disease (Contagious Bovine Pleural Pneumonia- CBPP), African swine fever and the New Castle disease;

(v) in terms of fisheries programmes, the Government has scaled up the promotion of fish farming (aquaculture) among small-scale fish farmers to improve fish production as a result of policies formulated at the regional level. More dams and fish ponds for fish breeding are being constructed all over the country;

(vi) in addition, activities implemented in the area of HIV and AIDS in the country are a result of the implementation of policies and strategies adopted at the regional level, for example, the Maseru Declaration on Combating HIV and AIDS; and

(vii) SADC has contributed towards job creation. For example, fifteen Zambians are currently working for the SADC Secretariat and projects.

Mr Speaker, with regard to COMESA, currently, there are nineteen members states with a total population of about 390 million. The aims and objectives of COMESA have been designed so as to remove the structural and institutional weaknesses in the member states by pooling their resources together in order to sustain their development efforts either individually or collectively. These are as follows:

(i) attain sustainable growth and development of the member states by promoting a more balanced and harmonious development of its production and marketing structures;

(ii) promote joint development in all fields of economic activity and the joint adoption of macro economic policies and programmes; to raise the standard of living of its peoples, and to foster closer relations among its member states;

(iii) co-operate in the creation of an enabling environment for foreign, cross-border and domestic investment, including the joint promotion of research and adaptation of science and technology for development;

(iv) co-operate in the promotion of peace, security and stability among the member states in order to enhance economic development in the region;

(v) co-operate in strengthening the relations between the common market and the rest of the world and the adoption of common positions in international fora; and

(vi) contribute towards the establishment, progress and realisation of the objectives of the African Economic Community (AEC).

With regard to the benefits from COMESA, among others, Zambia has derived the following benefits from its membership:

(i) by hosting the Headquarters of COMESA, Zambia derives benefits from various projects through the inflow of foreign exchange that is brought about by funding, as well as, through the non-Zambians who are employed and are paid in foreign currency;

(ii) COMESA has also contributed to job creation, as a number of Zambians are working for the organisation as well as for its projects. Currently, there are 184 Zambian nationals employed by the COMESA Secretariat and these are on projects such as the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) and the Preferential Trade Area (PTA) Bank;

(iii) the COMESA Free Trade Area (FTA) and the transition to the customs union have created significant trade opportunities for Zambian traders. For example, traders now have easy access to COMESA member states markets and this, in turn, gives them added advantage to conduct cross-border trade;

(iv) COMESA is supporting the implementation of Simplified Trade Regimes (STR) which is a mechanism that allows smoother and formalised small-scale cross border trade in the region. The implementation of the STR is already underway between Zambia, Malawi and Zimbabwe;

(v) in the implementation of the North-South Corridor Aid for Trade Programme, a number of one stop border posts (OSBP) are being constructed with the aim of facilitating the ease of conducting business between member states and Zambia. Amongst these is the Chirundu OSBP, which was commissioned on 5th December, 2009 as Sub-Sahara’s first OSBP corridor. Work to establish the OSBP is in progress at Nakonde/Tunduma and Malaba whereas the design of the Kazungula Bridge and OSBP has been completed and preparations for its implementation, including sourcing of funding, is on-going;

(vi) in the energy sector, Zambia is poised to benefit from the implementation of electric power interconnection projects, including the Zambia/Tanzania/Kenya (ZTK) Inter-connector, which will link the Eastern Africa Power Pool (EAPP) and the Southern African Power Pool (SAPP) and enhance power trade within the tripartite; and

(vii) in the area of transport links, the road network and other cross border infrastructure such as roads and bridges along the North-South Corridor have been worked on. This will further promote trade among member states.

Mr Speaker, the aforementioned illustrate, briefly, the benefits that Zambia derives from its membership to SADC and COMESA.

I thank you, Sir.

Hon. Government Member: Hear, hear!{mospagebreak}

MINDOLO POLICE CAMP

529. Mr Mwenya asked the Minister of Home Affairs:

(a) when the police cells at Mindolo Police Station in Kitwe would be rehabilitated; and

(b) when the water supply system to Mindolo Police Camp where officers and their families have been drinking contaminated water would be rehabilitated.

The Deputy Minister of Home Affairs (Mr Taima): Mr Speaker, the cells at Mindolo Police Station will be rehabilitated this year, once the budgeted for funds are released.

The water supply system to Mindolo Police Camp will be rehabilitated this year as indicated above, once the budgeted funds are released by our colleagues responsible for finances.

I thank you, Mr Speaker.

Mr Mwenya: Mr Speaker, could the hon. Minister specify how much has been budgeted for the rehabilitation of the police cells and water reticulation system at Mindolo Police Station.

The Minister of Home Affairs (Mr Lungu): Mr Speaker, a total of K825 million was approved in this year’s budget for the rehabilitation of police cells and water reticulation system as in part (b) of the question. However, this amount is for the whole nation and not particularly for Nkana. Once funds are released, we will decide where to take the money.

Sir, you may wish to know that, so far, K100 million, has been released. You will also recall that we had a debate in the House about the problem of cells in Choma and, therefore, this K100 million has gone towards the rehabilitation of cells in Choma. Once all the money has been released, we will know which cells can be attended to, including the water supply at Mindolo Police Camp.

I thank you, Mr Speaker.

Mr Chisala: Mr Speaker, when will the staff houses in the same area be rehabilitated?

Mr Lungu: Mr Speaker, in the Sixth National Development Plan (SNDP), there is a provision to rehabilitate staff houses in various camps. Therefore, that will be taken care of during the period under discussion.

I thank you, Sir.

Mr Lubinda: Mr Speaker, can I find out from the hon. Minister the source of this contaminated water? Is it from shallow wells or piped water? If it is piped water, what is causing the contamination?

Mr Lungu: Mr Speaker, as Ministry of Home Affairs, we cannot tell the source of the contamination but, maybe, our colleagues who deal in matters of that nature would be able to tell us. All we know is that the water is contaminated.

I thank you, Mr Speaker.

SAFE DRINKING WATER IN KITWE

530. Mr Mwenya asked the Minister of Local Government and Housing:

(a) when water pipes to supply safe drinking water to the following townships in Kitwe were laid:

(i) Mindolo/Miseshi;

(ii) Buchi/Kamitondo;

(iii) Buyantanshi;

(iv) Parklands;

(v) Rokana;

(vi) Chachacha; and

(vii) Mukuba; and

(b) what the lifespan of galvanised water pipes was.

Mr Muteteka: Mr Speaker, I wish to inform the House that water pipes to supply safe drinking water in the mentioned townships were laid in the years tabled below:

Location Initial Installation Partial Replacement

Mindolo/Miseshi 1950 Nil
Buchi/Kamitondo 1950 1999
Buyantanshi 1970 Nil
Parklands 1945 1950
Rokana 1940 1980
Chachacha 1978 1990
Mukuba/Natwange 1995 Nil

Mr Speaker, for further clarification to the House, the life expectancy of mild steel in a protected environment is fifty to 100 years. The life expectancy of galvanised pipes deteriorates fast when used in harsh environments such as hot water, alkaline/acid water or chlorine. The lifespan of GI pipes may dwindle to 15-20 years in such harsh environments.

Mr Speaker, galvanised steel is steel that has been covered with a layer of zinc. During galvanising, steel is immersed in a molten zinc bath, ensuring a tough uniform barrier coating. Zinc’s natural corrosion resistance protects the steel pipe from the corrosive effect of water and environment in general.

Mr Speaker, I thank you.

Mr Mwenya: Mr Speaker, from the response given, we are able to tell that these pipes have been in existence for a very long time and that most of them are blocked and there is very little water passing through. What deliberate programme has been put in place to replace the worn out galvanised pipes to improve the supply of water and reduce the loss of water through the holes in most of these rotten pipes?

Dr Chituwo: Mr Speaker, truly one sees that these pipes were laid a long time ago but, of course, there is the issue of wear and tear. There is an on-going project with the NWSC and the major purpose of the ADB loan is not only for improving the water source and reservoir, but also the issues of distribution. That is the programme which is on-going and I am sure that even the company is concerned that a lot of water that has been purified at a high cost is lost and does not reach the residents. This is a loss to the company.

I thank you, Sir.

Mr Simuusa (Nchanga): Mr Speaker, the trend now is to move away from galvanised pipes to high density plastic (HDP) pipes which give almost a lifetime guarantee and are cheaper. Is the Government considering using HDP pipes as opposed to galvanised pipes in townships?

Dr Chituwo: Mr Speaker, I presume that when the hon. Member says, the Government, he is referring to companies that work on its behalf. I would like to believe that the use of HDP pipes being the trend and since the company is striving to be efficient in its operations, that is the way to go rather than continuing with the old technology.

I thank you, Sir.

Dr Machungwa: Mr Speaker, considering that pipes in most of our towns, cities and districts were laid a long time ago, they would have deteriorated to levels where they would be very inefficient in reticulating water. Is the hon. Minister willing to work closely with the water companies to ensure that they replace some of these water pipes by even using the suggested method of using HDP pipes?

The Deputy Chairperson: Order!

The question is similar to the one already asked.

INDENI PRODUCTION CAPACITY

Mr Chisala asked the Minister of Energy and Water Development:

(a) what the production capacity of Indeni at its inception in 1973 was;

(b) what the capacity currently was; and

(c) how many times the pipes had been replaced on the entire stretch of the pipeline from Dar-es-Salaam to Ndola.

The Deputy Minister of Energy and Water Development (Mr Akakandelwa): Mr Speaker, the production capacity of Indeni, at its inception in 1973, was 662,000 metric tonnes of crude feedstock. The refinery design capacity is 1.1 million metric tonnes.

Mr Speaker, while the design capacity is still the same, the production capacity in 2010, for example, was 626,140 metric tonnes. Over the refinery lifetime, the highest production capacity of 798,000 metric tonnes was recorded in 1976 while the lowest of 16,848 metric tonnes was recorded in 2000 just after the refinery fire of 1999.

Since its inception in 1968, the pipeline has had several sections replaced in an effort to retain its production capacity. The major replacements have been carried out as follows:

Year Stretches of Replacements

1988 13 km  between Ruvu and Chamakweza
64 km between Chamakweza and Bwawani

1990 15.4 km between Pugu and Mlandizi
34 km between Bwawani and Melela.

1993 6 km between Melela and Ndola.      
   
2009 5 km between Kigamboni and Chamakweza  

2011 This year the works are on-going as 4 km of 12 inches in 6 sections between 445 km which is Ilula and 456 km which is Mazombe are being worked on. This includes repairs by sleeves on forty-one isolated weak points between 446 km and 467 km which is the Iringa Pump Station.

I thank you, Sir.

Mr Chisala: Sir, from 1973 to date, the number of customers has increased greatly. What immediate plans has the Government made to meet the demand of consumers in Zambia?

Mr Akakandelwa: Mr Speaker, the installed capacity is 1.1 million metric tonnes. We have, in fact, never used the facility to full capacity since inception. Therefore, there is still room to cater for more consumers.

I thank you, Sir.

ZESCO PROFITS

532. Mr Chisala asked the Minister of Energy and Water Development:

(a) how much profit the  Zambia Electricity Supply Company (ZESCO) Limited recorded in 2008, 2009 and 2010; and

(b) how much money was spent on the construction of the Lumangwe Hydro-Power Station in Mporokoso District.

Mr Akakandelwa: Mr Speaker, the ZESCO operating results for 2008, 2009 and 2010 are as follows:

Description 2008 2009 2010
 (K’ billion) (K’ billion) (K’ billion)

Profit for the year 35,358 39,750 354,344

Mr Speaker, there is no Lumangwe Hydro-Power Station Project. However, in 1999, ZESCO commissioned Montgomery Watson Harza to carry out a feasibility study to establish the power potential of the Kalungwishi and Luapula rivers. The study cost US$1.34 million and it established that up to fifty-four megawatts of power could be generated at Lumangwe Falls. Due to its scenic beauty, the falls will not be exploited for power generation.

Mr Speaker, I thank you.

Mr Chisala: Sir, are there any other alternative projects that the Government intends to carry out in terms of hydro-power development in the Northern Province?

Mr Akakandelwa: Mr Speaker, the Northern Province is not isolated. I know there is a need for power in the Northern Province and, therefore, it will be connected to the national grid. That way, its electricity demands will be catered for.

I thank you, Mr Speaker.

Dr Machungwa: Mr Speaker, what was the rationale behind spending US$1.3 million on a feasibility study at Lumangwe Falls when the Government did not want to disturb the scenic beauty of the area?

Mr Akakandelwa: Mr Speaker, it is good to have such information just in case we change our mind, in future, if and when the demand for more power justifies such a move. I, therefore, do not see anything wrong with the study because it provided information that is useful for national planning.

I thank you, Sir.

Mr Simuusa: Mr Speaker, ZESCO has been posting healthy profits from 2008 to 2010. I wish to find out from the hon. Minister why a picture that ZESCO is a company that is struggling financially has been painted and why this picture has been used to justify increases in tariffs.

Mr Akakandelwa: Mr Speaker, I am happy that ZESCO has been making profits. However, if the hon. Member cared to look at the figures, he will see that, in 2008, we had K35 billion, K39 billion in 2009 and K354 billion in 2010, which is almost tenfold. Obviously, there is a quantum leap, I must state, because of the effort that the Government and ZESCO have put in to modernise and make the company efficient. Therefore, credit must go to the policies of this Government for this good performance.

I thank you, Sir.

______________

MOTION

REPORT OF THE COMMITTEE ON ECONOMIC AFFAIRS AND LABOUR

Mr Kakoma (Zambezi West): Mr Speaker, I beg to move that this House do adopt the Report of the Committee on Economic Affairs and Labour for the Fifth Session of the Tenth National Assembly laid on the Table of the House on 3rd June, 2011.

The Deputy Chairperson: Is the Motion seconded?

Mr Zulu (Bwana Mkubwa): Yes, Mr Speaker.

Mr Kakoma: Mr Speaker, the world has, in the last decade, witnessed the emergence of giants in manufacturing such as China and India. The rise in manufacturing in these economies has brought out corresponding increases in the demand for and consequently a rise in the price of raw materials on the international market. Countries that are naturally endowed with key resources such as minerals, oil and timber have been recording impressive economic growth rates ranging from 5 per cent to as high as 15 per cent per annum. In these countries, extractive industries have been thriving. Zambia is one such country where extractive industries have been active in the last decade, save for the period 2008/2009, when the world experienced an economic crisis.

Mr Speaker, in order to appreciate the actual impact on our country, your Committee undertook a study on the impact of the extractive industries on Zambia’s economy with respect to mining in the post-privatisation era. I am sure hon. Members have thoroughly read the report of your Committee and are familiar with the full details of the study. In this vein, let me now highlight the major findings.

Sir, there is a positive as well as negative impact of the extractive industries on Zambia’s economy. The mining sector contributes to the growth of the gross domestic product (GDP). The overall contribution of the mining sector to the GDP is about 10 per cent. This contribution is rather low for an economy driven by mining. It should be noted that between 2001 and 2009, the average economic growth rate per annum, according to the Central Statistical Office (CSO) figures has been 5.4 per cent. All forms of mining and quarrying contributed, on average, 1.6 percentage points of that growth rate.

Nevertheless, the rebound of the mining sector has resulted in the increase of production of copper from less than 300,000 tonnes per annum before privatisation to over 700,000 tonnes per annum in 2010. This has brought about a new lease of economic life on the Copperbelt and North-Western provinces.

Mr Speaker, the contribution of the mining sector to the Treasury is mainly through taxes. Although the value added tax (VAT), Pay-As-You-Earn (PAYE), customs duties and the total contribution of mining taxes as a percentage of the GDP is minimal at less than 2 per cent, the Government benefits from mineral royalties while local authorities do so through property rates.

Mr Speaker, dividends, with the exception of the US$18.1 million paid by Kansanshi Mine in 2010, are also insignificant. Most mines in which the Government has an equity stake, through the Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH), are still reporting losses. The general opinion among non-State actors is that the current tax regime is inadequate to guarantee maximum benefits from the mineral wealth despite the current high metal prices on the international market, because of the following:

(i) the tax incentives that the Government has granted mining companies are too generous;

(ii) the Zambia Revenue Authority (ZRA) lacks capacity to audit mining companies for tax purposes. Related to this, the country does not have reliable critical information such as production costs of mining companies, especially for gemstone mines; and

(iii) there is interference in the collection of property rates from mining companies by local authorities.

Mr Speaker, the Government, on the other hand, is convinced that the current tax mining regime is adequate.

Your Committee notes that what is needed is to reach consensus on a fair tax regime.

Zambia has an added advantage in deciding on a fair tax because it has gone through periods of low and high metal prices. In addition, some investors in the mining industry have shown willingness to discuss the windfall tax and find ways of implementing it.

Mr Speaker, your Committee recommends a simple tax applicable in the mining sector which should be easier to administer by the ZRA, considering its current limited capacity with respect to mining taxation. A tax on volume produced or total value of exports will be simple to administer. A remodelled windfall tax which takes into account production costs should be introduced.

Apart from Chibuluma Mines Plc, your Committee did not find evidence of any mine paying variable profit tax.

It is also cardinal, in the short term, to implement the Mineral Royalty Sharing Mechanism, as provided for in the Mines and Minerals Development Act of 2008. This will ensure that local communities directly benefit from the mineral wealth in their respective areas. This also has the advantage of minimising the apprehension that people may have towards foreign investors.

Mr Speaker, in order to increase revenue, in the medium term, your Committee urges the Government to consider the following:

(i) current mining operations should be treated separately from new mining projects. At present, existing companies that are about to fall into tax-paying positions deliberately embark on new projects in order to continue declaring losses;

(ii) reducing capital allowance from 100 per cent to 25 per cent. The 100 per cent capital allowance is too high in a given year, making it easier for mining companies to reduce profits;

(iii) reducing the period for carry-forward losses from ten to five years. Given the high production levels and metal prices, the economic life of a mine can be reduced. For example, if the economic life of a mine is ten years, with better technology, minerals can be exhausted in less than ten years; and

(iv) reducing the tax stability period from ten to five years. Economic factors are dynamic and to wait for ten years before changing the tax regime is contrary to rational economic thought.

Furthermore, Zambia is also losing revenue through international transfer pricing. Parent companies of mining firms operating in Zambia should be required to buy copper and other metals from Zambia at the London Metal Exchange prices.

Mr Speaker, employment levels in the mines are lower today than they were in the 1990s, largely due to advanced technology and the capital-intensive nature of mining today. There is also concern in the quality of jobs and the conditions under which the workers operate. There continues to be cases of intimidation, lack of training and poor contract terms of employment. There is a need for the Ministry of Labour and Social Security to become more proactive and address these concerns.

Mr Speaker, between 2006 and 2009, the total foreign direct investment (FDI) inflows amounted to US$2,838.7 million. However, since most capital investments are financed through borrowing, this will result in outflows in later years as the loans mature.

Mr Speaker, mining still remains the main foreign exchange earner. Records show that, in 2005 and 2006, the percentage contribution of mining to export earnings was as high as 91 per cent.

Mr Speaker, in terms of backward linkages, opportunities have been created for entrepreneurs to supply mining companies with some inputs. Unfortunately, most of such inputs are imported. There are few locally manufactured inputs into the mining sector. Local suppliers are also finding it difficult to supply the mines, as some mining firms tend to favour foreign suppliers.

The situation for forward linkages is similar in that Zambia does not have a developed manufacturing sector that utilises outputs of mining companies as inputs. There is a need, therefore, for more value addition to copper in the country to maximise the local benefits.

Mr Speaker, owing to the low copper intake into the local manufacturing sector, your Committee recommends that Zambian entrepreneurs promote more value addition in partnership with investors from emerging economies such as China and India which already have established markets.

Mr Speaker, mining, by its nature, comes with negative impacts. In Zambia, this is mainly on the environment and the road infrastructure. With respect to the environment, the impact is through the following:

(i) air pollution, mainly dust and gas emissions;

(ii) water pollution, both surface and underground water systems; and

(iii) land degradation, mainly through deforestation, slag dumps, tailings dumps, dams and mining pits.

Mr Speaker, the House is familiar with cases concerning the mentioned effects on the environment. Although mining companies have put in place environmental mitigation measures, the concern from the communities and local authorities is that the apparent inability of the Zambia Environmental Management Agency (ZEMA) has remained under the Environmental Management Act of 2010 which makes it difficult for it to penalise mining companies when they contravene environmental laws. Since the House recently passed the Environmental Management Act, your Committee can only hope that Zambia will witness an improvement in the way mining companies are dealt with for contravening environmental laws.

Mr Speaker, on road infrastructure, the negative impact is visible for all to see. With the moribund railway system in place, up to 90 per cent of copper is now transported by road. With the increased production of copper and other minerals such as coal, manganese and nickel, the road network will be further constrained. This is in addition to the fact that Zambia is also a major cargo transit route for the Democratic Republic of Congo (DRC) and Malawi.

Since mining is likely to remain the mainstay of the economy, for sometime, the Executive should come up with more sustainable strategies such as revamping the railway system and making mining companies share part of the burden of maintaining the road network.

Mr Speaker, let me conclude my debate by talking about transparency and accountability issues. Concerns have been raised in the way the Government enters into agreements with mining companies. The recent fiscal agreements are not open for public scrutiny. This indicates that the Government is not willing to make the process more transparent and prevent unnecessary speculation. There are also concerns regarding the declaration of profits and taxes as well as the inadequate banking of mining revenue locally and remittance of sales revenues from Zambia. There are even more challenges of accountability in the gemstone sub-sector. Production and sales of gemstones are not closely monitored by the Government. Therefore, the country is not benefiting much from this sub-sector despite the potential that it has.

Your Committee, however, notes the progress that has been made under the Extractive Industries Transparency Initiative (EITI). Your Committee urges the Government to ensure that all mining companies subscribe to the initiative. In addition, the Government should ensure that discrepancies in the reported figures are dealt with expeditiously to prevent unnecessary suspicions.

Mr Speaker, I wish to thank you and the Clerk for the advice, guidance and other services you have provided to your Committee during its deliberations. Members of your Committee are also grateful for having accorded them the opportunity to be on the Committee on Economic Affairs and Labour in the Fifth Session of the Tenth National Assembly. Your Committee is also grateful to all the witnesses who made submissions to your Committee in this session both on topical issues and Bills.

Mr Speaker, lastly, the Committee wishes to place on record its appreciation for the National Democratic Institute sponsorship of the tour of Mufulira by your Committee and selected members from the Committee on Estimates and the Public Accounts Committee.

Mr Speaker, I beg to move.

The Deputy Chairperson: Does the seconder wish to speak now or later?

Mr Zulu: Now, Sir.

Mr Speaker, I wish to second the Motion, urging this august House to adopt the report of your Committee on Economic Affairs and Labour for the Fifth Session of the Tenth National Assembly.

Mr Speaker, the Chairperson of your Committee has highlighted major issues contained in the report. Therefore, in seconding the Motion, I will just look at the benefits of mining as well as labour matters.

Mr Speaker, the Government of the Republic of Zambia, through the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH), has shares in most of the mining companies operating in the country. The shareholding ranges from 10 to 20 per cent. This is relatively low shareholding that can, at times, be advantageous to the country when it comes to exposure to risks and also when there is a need to inject more capital in the operations of the mines. However, when there is a boom in metal prices, as is the case now, the situation works out to the disadvantage of the minority shareholders.

The prices of metals on the international market are high and production is also high, but very little is going into the Treasury. The people who are benefiting are those who provided the required recapitalisation funds, and hence inadvertently expose themselves to the risks of a possible collapse in the prices. This is a bitter lesson for our country. There is an immediate need for the Government, through the ZCCM-IH, to increase its shareholding levels in the mines to the levels that will enable the country to adequately benefit from the high metal prices. However, this should not be at a level that will threaten the operations of the mines, that is, a level at which the Government may fail to inject fresh capital, when the need arises.

Mr Speaker, there are companies in Zambia in which the Government is the majority shareholder that are now struggling with their operations due to a lack of new capital injection. These include companies such as the Nitrogen Chemicals of Zambia (NCZ), Zambia Electricity Supply Corporation (ZESCO) and Zambia National Building Society (ZNBS).

Mr Speaker, as hon. Members may have noticed in the report, Vale SA of Brazil has offered to buy the Metorex Group of South Africa for US$1.1 billion. Metorex Group of South Africa is also a majority shareholder in Chibuluma Mine Plc. and Sable Zinc Kabwe Limited. Vale SA is, however, not interested in the mine in Kabwe which is a small, but modern profit-making metal processing company. This is now an opportunity for the ZCCM-HI to acquire major shares in this company.

Mr Speaker, increasing our shareholding in such operations is the best way of guaranteeing ourselves maximum benefits without relying heavily on the tax benefits. This opportunity may have already been lost as there are press reports now to the effect that Sable Zinc Kabwe is to be sold to Glencore, the majority shareholder in the Mopani Copper Mines.

Mr Speaker, Zambia has a lot of gemstones. However, the mining sub-sector, since independence, operates in what one would describe, for lack of better terms, ‘a secret way’. Production and sales figures of gemstones are not readily available and, therefore, the wealth generated is not known. It is also difficult to state if correct taxes are collected from the gemstones.

Mr Speaker, there are other nations that have benefited a lot from the gemstones mined in Zambia. This is a very strange phenomenon because most of the gemstone miners are Zambians.

Mr Speaker, your Committee wishes to see more Government involvement in this sub-sector and, therefore, it is recommending, among other things, that the following be undertaken:

(a) establishing an equipment hire scheme which should include exploration equipment such as core-drilling machines which are very expensive for small-scale miners to acquire;

(b) promoting joint-ventures between Zambian small-scale miners and foreign investors who may have access to cheaper investment funds;

(c) assisting in the establishment of a loan scheme within the framework of the Citizens Economic Empowerment Programme;

(d) assisting in the establishment of a private sector-operated gemstone auction so that all gemstones can be sold locally;

(e) creating linkages between small and large-scale miners for purposes of production, polishing and marketing; and

(f) promoting value addition to the gemstones before exporting them.

Mr Speaker, there are many ways in which Zambia can benefit from mining. What are contained in the report are just a few.

Sir, expanding benefit opportunities from mining corps requires more innovation. For example, there is currently no Zambian metal trading company that purchases metal concentrates, uncut gemstones and finished metal products such as copper cathodes in bulk. However, there are companies in the region which purchase minerals from Zambia which they take to the international market. There exists an opportunity for Zambians to play a major role in marketing their own metal products.{mospagebreak}

Mr Speaker, let me now talk a bit about labour matters. It is true that mining has contributed to the creation of employment even though the levels are still less than the ZCCM days. According to the Central Statistical Office (CSO), in 1990, the ZCCM had 64,700 employees. At the time of privatisation, the number of employees had reduced to 35,000. In 2009, the number of employees in the mining sector increased to 55,000, but this was still below the 1990 figure. It will be quite a challenge to achieve these levels because mining is highly capital intensive these days.

Your Committee was informed that in 2010, one new mine with about 3,000 workers produced 146,000 tonnes of copper while an older mine with about 21,000 workers produced 173,000 tonnes. In other words, at the new mine, one worker produced 48.6 tonnes of copper per annum while at the old one, one worker produced 8.2 tonnes of copper per annum. This shows that increased investment and high production in the mines will not necessarily mean more jobs because of the use of new mining technology which is not labour intensive.

It is important for the Government to improve the quality of the few jobs that have been created. It is not right, at this stage of our development, to have reports of miners working under inhuman conditions. To this effect, the Ministry of Labour and Social Security should ensure that practices such as labour brokering are discouraged and that all investors respect the Zambian labour laws. In addition, all labour-related laws that are outdated and weak should be amended so that the Zambian worker can be happy again.

Sir, since the time of privatisation, mining technology has advanced. Unfortunately, our college and university education system have not developed at the same pace. We are now caught up in a situation where mining companies have difficulties in engaging our graduates because of the gaps between what Zambian colleges and universities can produce and the requirements of the mining industry.

Mr Speaker, this situation seems to be worsening everyday as, only last week, one of the mining companies put up an advertisement in one of the daily newspapers for Grade 12 graduates to apply for scholarships to study at South African universities in various mining and engineering disciplines. This is a serious wake-up call for us to invest more in science and technology training.

Mr Speaker, let me end by joining the mover of the Motion to thank you, the Clerk and all witnesses for having supported the work of your Committee on Economic Affairs and Labour.

I thank you, Sir.

Mr Lumba (Solwezi Central): Thank you, Mr Chairperson, for giving me this opportunity to debate this important Motion.

Mr Speaker, let me start by saying that we should be specific when talking about metals because the metal in question is copper. There has not been a better time for copper mining than now. From what I have heard and known, copper is a wasting asset. Therefore, we need to find opportunities to maximise our benefits from copper mining.

Mr Speaker, copper has been a star performer both before and after the credit crunch. The main movers of this performance of copper have been the eastern countries, particularly China. In 2005, China accounted for about 22 per cent of the world’s consumption of copper. If the Government is aware that copper is a wasting asset, and, as a result, it is thinking of diversifying the economy, the money which it can use to do so should come from copper, which is the mainstay of our economy. This report has brought out all the benefits we can derive from copper.

Mr Speaker, how much tax are we getting from copper mining? On page 2 of your report, your Committee shows a table of the contribution of the mining companies to the tax revenue. It is sad to note that our mainstay of the economy is contributing very little to the country’s revenue.

Page 3 of your report, Mr Speaker, again gives us another sad story. The Pay-As-You- Earn (PAYE) contributes more to the Treasury than any other form of tax. Your Committee has stated that the number of people working in the mines has reduced and, therefore, that sector only accounts for 26 per cent of the total money collected by the Government through PAYE.

Mr Speaker, sadly the mining sector’s contribution to the gross domestic product (GDP) has reduced from 40 per cent at independence to below 10 per cent in 2007. This is what the graph in your report indicates.

Mr Speaker, in terms of employment offered through the mining sector, as the seconder of the Motion has stated, there has been a reduction from 12 per cent in 1990 to 8 per cent in 2009, as your report has shown in the table on page 5.

When you think of the contribution to foreign exchange earnings, your report states that, in 2010, supply to the banking sector was US$905 million out of the export earnings of US$6 billion.

Mr Speaker, you can see that when one is trying to read through your report and see what we are getting from the mainstay of our economy, copper, at a time the commodity is fetching very high on the market, the question that one asks is why it is like this. Is it a deliberate ploy by the Government not to maximise the revenue when it wants to diversify the economy? Where will we get the money to invest in diversification if we cannot do it now?

Mr Speaker, I know that we want to protect the investors, but they are not our relatives and are not interested in helping us. They have come here because they want to make profits. When the chips are down, we have seen how they quickly put the mines on care and maintenance or even pull out. Who suffers as a result of that? It is our workers who remain unemployed. What is attracting the investors to the country is the high price of copper. However, when the price goes down, they will be the first to pack their bags and go.

Mr Speaker, when I just came back into the country, after the 2001 elections, the first news I heard was that the Anglo-American Corporation was packing and leaving. The Roan Antelope Mining Company of Zambia (RAMCOZ) also left and we can go on and on about how these people we are trying to protect and pamper leave us when the chips are down.

Mr Speaker, I would like to suggest to the Government that this is the time to get the money it needs to diversify the economy. This is the time to get the money from copper to invest in tourism, agriculture and improve our manufacturing industry. Why is the Government scared of the investors? We can promote Zambians. During the time of the ZCCM, there were more Zambians working in the mines who knew how to extract, process and export the copper than there were expatriates. We had the Metal Marketing Company (MEMACO) and other subsidiaries of the ZCCM which could do what these investors are doing. However, at the moment, in any mining company, the top people are non-Zambians and we have left our own people out.

Hon. Government Member: Finally!

Mr Lumba: Not yet. I know you want to go and attend interviews.

Laughter

Mr Lumba: Sir, I know that people want to go, but I cannot finish talking about copper and what is happening without talking about the North-Western Province, and Solwezi in particular. We are being cheated that we are the new Copperbelt.

The Deputy Chairperson: Order!

Could you use a different word from ‘cheating’.

Mr Lumba: Mr Speaker, I withdraw the word ‘cheating’ and replace it with ‘deceived’, if that is parliamentary.

Laughter

Mr Lumba: Mr Speaker, we are being deceived or misled that we are the new Copperbelt of Zambia, but we cannot compare the North-Western Province to the Copperbelt Province.

Mr Speaker, recently, the Government embarked on what it is calling the Formula I Project for roads. I can debate here that over 80 per cent of the money funding this project is from the Kansanshi Mine, but no single road is being worked on in Solwezi.

The Solwezi/Chingola Road is at the mercy of the Kansanshi Mine, through its corporate social responsibility. The Government is not doing anything about the road. It is only a miner in Solwezi who comes from work to no proper accommodation and fetches water in a twenty-litre yellow bucket after spending over eight hours in the open pit of Kansanshi Mine. It is a raw deal we are getting even though we are being told that we are the new Copperbelt of Zambia.

Mr Speaker, if you go further and look at Lumwana, the Lumwana River where villagers used to get their fish is no longer able to accommodate fish because the Lumwana Mine has been disposing some of its waste into it. In fact, the river is drying up.

Mr Speaker, if you went to Solwezi, today, because of the number of buses and trucks that move around there, you would be under the impression that the town had just come out of a war because the roads are not anything to talk about. In fact, having been to all the provincial towns in this country, I can safely say that Solwezi is the least developed. You cannot compare it to Mongu, Kasama or Mansa, and yet it is contributing more to the GDP of this country than any of these towns. It is also contributing more to the so-called Formula 1 Project than the towns I have mentioned.

Mr Speaker, the elections are coming and the people of Solwezi have noted these problems.

Mr Speaker, with those few words, I thank you.

Mr Chongo (Mwense): Mr Speaker, I have a very short contribution on the issues arising from the presentation by the Chairperson of the Committee. He talked about this Government not having the capacity to check on the mines’ cost of production. Indeed, this is true in a way. I believe that the only way we can go around this problem is by encouraging these mining houses to engage local investors to do the supplying. Of course, we need other investors, especially in the areas where Zambians may not have the capacity.

Mr Speaker, in the area of engaging local manpower, you may need to know that Zambia, since independence, has produced a number of graduates in mining engineering. We have technicians and technologists from the Copperbelt University who, today, are either roaming the streets or have opted to venture into other areas because they cannot be taken in by the industry. This is so as most of their jobs have been taken up by even inferior manpower that we are bringing into this country. Once we bring those people in, we have to pay them a lot of money and this is contributing to the cost of production. I believe that the Government needs to do something about that.

Sir, I am happy that the Chairperson, if I heard him correctly, talked about windfall tax and the need to put in place a tax system that is very convenient for both the Government and the investor. This is the way to go. Of course, it justifies the Government’s position that windfall tax is not the best way to tax these mines. We, however, can create a system that is appropriate. The idea is to get as much benefit as we can so that this country can benefit.

Mr Speaker, even as we get the tax we need, we should realise that benefits should accrue to almost every Zambian. We also need to ensure that the people who contribute to the creation of the wealth, the miners, also benefit. How can this be done? It can be done if the Government gets reasonable tax out of the mines so that it remains with enough resources to increase the salaries of the workers who are generating this money. It is not enough for them to benefit from the construction of hospitals and other facilities, but also directly by having hefty salaries.

Sir, there are a number of mining companies that are not paying these miners handsomely. Therefore, let us not tax because we want to kill off or maximise on tax because the miners who produce this wealth may feel discouraged to do so. As a result, the Government may not get the benefits that it wants to get therefrom.

Lastly, Sir, the Chairperson talked about mining houses evading paying tax because, each time they are about to graduate …

Interruptions

The Deputy Chairperson: Order!

Mr Chongo: … from their tax exemptions, they start another project. 

It is good for this country to open up new mines because we can be rest assured that many school leavers will be absorbed into these mines. We need, therefore, to encourage such mining houses. As they continue production, they should have enough money to open up other mines so that Zambians benefit.

With these few words, I thank you, Sir.

Hon. Opposition Members: Hear, hear!

The Minister of Finance and National Planning (Dr Musokotwane):  Mr Speaker, I thank you for the opportunity to make some remarks on the report that has been presented to this House. I have a few points in reaction to some of the issues that were mentioned.

Mr Speaker, first and foremost, according the report, is the issue of the contribution of the mining sector to the GDP being low. It is indicated that, in the 1970s, the GDP was around 40 per cent, even though I have not personally checked this figure, and that now it is around 10 per cent.

I think that the explanation for this is very simple. The mining sector was extremely dominant in our economy in the 1970s. There was hardly any other economic activity. Those of us who were adults then will remember that commodities such as tomatoes, beef and cabbage were imported. Clearly, there was hardly anything else the economy was producing. It is, therefore, not surprising that the contribution of the mining sector to our GDP, then, was so high.

This situation has changed dramatically today. The mining sector, in terms of production, is about where it was in the 1970s. However, since then, our agricultural sector has expanded. We have large amounts of sugar, maize and beef being produced. This should not be surprising. As the economy continues to grow, provided the other sectors continue to expand as we wish them to, it may not be possible that the mining sector alone can ever get back to the contribution level of 40 per cent to the GDP. This is because in as much as the sector will be expanding, so will tourism and information and communications technology. Therefore, if everything is expanding, which is what diversification is all about, we cannot expect the mining sector to get back to being dominant in the economy.

Mr Speaker, as far as the tax contribution is concerned, we have said repeatedly that the confusion is that many people just want to say that the contribution is low without going beyond to analyse what the problem is. Is it because the law that we have on taxation is inadequate? Is it because implementation of this law, even if adequate, is not good? I would like to reiterate that all of those who debate such issues take time to study the tax laws applying to mining in other countries.

There are many mining countries in Africa. Just next door, there is South Africa, Namibia, Zimbabwe and the Democratic Republic of Congo (DRC). There are also countries such as Ghana, Australia, Canada, the United States of America (USA) and South America that understand what these laws say. Is the Zambian law on taxation inferior or too generous, as you say, compared to other countries?

When you study these laws, you will find that we are somewhere in the middle. This means that out tax regime is neither excessively high nor is it excessively generous. You need to understand this because if you act outside that framework, you may not attract investment. You must realise that investment is about sharing. For example, in this country, we have the mineral resources and other people have the financial resources and so, we share and split the dividends.

The question is: What is the best formula of sharing the spoils? It is to look at what everybody else does? Should we share according to the way every other mining country does? In other words, should we share according to the laws that obtain in other countries? If you are too generous, of course, you are doing yourself disfavour and if you are overly expensive then you end up discouraging investment. That balance must be there.

Sir, in the case of Zambia, I believe and I am sure that all experts looking at this will agree that the law is sufficient. What, then, is the problem? People are confused because they think that when they see so many tonnes of copper coming from underground, then tax must be paid immediately. Unfortunately, it does not work that way. If you have a mine that is as new as Lumwana Copper Mine, which just started producing copper last year, you cannot expect it to pay the same amount of taxes as an old mine, perhaps, not old, but a mine that is mature, such as Kansanshi Mine. This is because the investors will have pumped in billions of dollars and, at the time, will not have recovered this money. Lumwana Copper Mine is new. Some people even said, before it starts producing copper, it should start paying taxes. Doing that is a recipe for ruining the economy because, then, these investments that you see will not come.

Sir, this is not only true in mining, but also in every other sector in the economy such as manufacturing and agriculture. I know about agriculture because I do a bit of agricultural activities. Even there, one is given a period of time …

Hon. Member: Grace period!

Dr Musokotwane: Yes.

… grace period or period in which you recover the losses that you have incurred such as the stumping costs for the fields, the amount of money you spent on tractors and all that. It is also like that in tourism and manufacturing. Therefore, it is a standard practice.

Mr Speaker, we are saying that, as mines, one by one, recover these initial costs, definitely, the amount of revenue from the sector will increase. For example, when Kansanshi Mine opened, we expected it to recover its money in ten years, but within two to three years, it recovered all its money. Today, Kansanshi Mine is the single biggest payer of taxes in this country. This is a mining company. There is no other company in Zambia, not even Zambian Breweries or anything, that pays as much tax as the Kansanshi Mine.

Therefore, we should be slightly patient for, at least, two to three years. After the mines each recover their costs, we will, naturally, see the amount of taxes from the mining sector.

Mr Nkhata: Hear, hear!

Dr Musokotwane: We expect that, in the next four to five years, about 33 per cent of all the revenues in the country will come from the mining sector.

Mr Nkhata: Hear, hear! So, vote for us!

Dr Musokotwane: If we are impatient and just want to grab everything, it will not work. For example, it is like when you plant a maize seed and you have a choice to either decide to harvest it before it is matured or wait for it to mature. Obviously, you will get a minimal yield when it is harvested before it matures compared to a person who waits for the maize to mature. It is exactly the same principle.

Sir, I have heard what my colleagues are saying, but I urge the country and the House to be patient so that we can see more wonders return to our country.

Mr Speaker, a point was raised to the effect that there is a tendency for mining companies to make a new investment in another mine so that they avoid paying taxes when they see that their tax exemption period is about to expire. This is not true because every mine is treated separately. For example, First Quantum Mine is opening a new mine, Kalumbila, where there was a ground-breaking ceremony. That mine will not be treated in the same way as Kansanshi. Therefore, the separation you are talking about already exists, and hence the danger that you talked about cannot arise.

Finally, let me talk about the issue of employment. It is true that in the 1970s and 1980s we had almost 60,000 miners working on the Copperbelt. That was part of the problem because the level of the labour force that was in these mines was far too high. It was the same with a lot of parastatal companies such as Zambia Airways. The labour force was too high to be sustained by the mines.

Mr Speaker, as we produce copper, we have to compete with others. Our mining sector was coming down and we complained about the low prices. Over the same period of time, the mining of copper in Chile was expanding with the same low prices. When ours was going down, Chile’s was expanding, hence the richness of Chile today. The problem was that the labour force was too big. Therefore, the cost of production was very high and so there was not enough money to put back into the industry. Today, under the private sector, we ought to accept that if we are to compete, the latest technology must be utilised so that if the prices collapse, the mines are able to stand firm and continue to give employment to our people.

Mr Speaker, we can expand employment in the mining sector by continuing with the provision of the conducive environment that we have today so that more mines open up and we can have more labour being employed in the new mines. The other thing that this Government is doing is to encourage value addition in the copper mining sector. This is why we have, for example, the Chambishi Multi-Facility Economic Zone, for example. This is for the purpose of using our copper so that we can become centres of excellence for the production of copper alloys such as brass, bronze and the manufacturing of items such as electric motors that require a lot of copper. Therefore, employment should come from the mines and also copper-related industries. I thought I should make those clarifications.

I thank you, Sir.

Hon. Members: Hear, hear!

Mr Kakoma: Mr Speaker, I thank you for giving me this opportunity to wind up debate on this very important subject. I would like to thank the hon. Members who have contributed to the debate on this Motion and, in particular, Hon. Lumba, Hon. Chongo and the hon. Minister of Finance and National Planning.

Mr Speaker, on the issue of the need to separate new projects from the existing mining activities, the hon. Minister may wish to know that your Committee was told by one mining investor that between paying taxes to the Government and investing in a new project, he would rather invest in a new project than pay taxes to the Government. That is why we found it necessary to make this recommendation. If the hon. Minister needs more information, your Committee is prepared to provide it.

Mr Speaker, I wish to urge the House to adopt this report which will revolutionise mining operations in Zambia and also maximise the benefits to the Zambian people.

I thank you, Sir.

Question put and agreed to.

______________

BILLS

REPORT STAGE

The Companies (Amendment) Bill, 2011

Report adopted.

Third Reading on Tuesday, 21st June, 2011.

THIRD READING

The following Bill was read the third time and passed:

The Supplementary Appropriation (2009) Bill, 2011

____________

MOTION

ADJOUNRMENT

The Vice-President and Minister of Justice (Mr Kunda, SC.): Mr Speaker, I beg to move that House do now adjourn.

Question put and agreed.

____________

The House adjourned at 1243 hours until 1430 hours on Tuesday, 21st June, 2011.

APPENDIX TO QUESTION 526

Key Baseline  Annual Targets

Performance 2009 2011 2012 2013 2014 2015
Indicators

Proportion of rural 53 61 65 69 73 75
population with safe 
drinking water supply (%)

Proportion of rural population  33 43 48 53 58 60
with access to adequate
sanitation (%)

Proportion of urban 74 75 76 77 79 80
Population with access to
safe water supply (%)

Proportion of urban population 37 44 48 52 56 60
with access to adequate 
sanitation (%)

Vulnerability Assessment 0 0 1 1 1 1
and Risk Management
Plan Completed