DAILY PARLIAMENTARY DEBATES FOR THE FOURTH SESSION OF THE TENTH ASSEMBLY

Wednesday, 28th October, 2009

The House met at 1430 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

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QUESTIONS FOR ORAL ANSWER

MEMORANDUM OF UNDERSTANDING WITH AFRICAN DEVELOPMENT BANK

156. Mr Mukanga (Kantanshi) (On behalf of Mr D. Mwila) (Chipili) asked the Minister of Community Development and Social Services:

(a) why the Government entered into a memorandum of understanding with African Development Bank for a loan facility to support vulnerable families under the Food Crisis Response Programme for 2009/2010;

(b) how much money was given to the Government by African Development Bank for the programme; and

(c) what the terms of the memorandum of understanding were.

The Deputy Minister of Community Development and Social Services (Mr Muteteka): Mr Speaker, member countries had made a request to the African Development Bank (ADB) to help resolve the challenges that were brought about during the increase in the global food prices. The African Food Crisis Response (AFCR) programme provides the framework for accelerated support to member countries of the ADB affected by increased food prices in 2008/2009.

At the annual meeting of the bank held in Maputo in 2008, attended by some ministers of finance, the bank proposed some short-term measures to address the food crisis. One such measure was to utilise uncommitted funds from closed loan projects. The Government of the Republic of Zambia accepted the bank’s proposed short-term measures to address the food crisis.

Following this, the Government submitted to the bank a request for utilising residual funds from three closed bank funded projects in Zambia. These were the Agricultural Marketing Processing and Infrastructure Project, Education III Project and the Health Sector Support Project (Health II). These projects had completed more than 90 per cent of their planned activities and outputs.

The letter of agreement signed is, therefore, not a new loan, but an arrangement to allow for the utilisation of uncommitted funds from existing loans for the purpose of purchasing fertilizers, seeds and other planting materials to boost crop production among vulnerable, but viable members of society in Zambia.

Mr Speaker, the total amount of money which was allocated and was uncommitted from the three ADB loans was mopped up to about US$3,240,000 which in kwacha terms translated into K14,904,000,000 to supplement the Food Security Pack (FSP) programme implemented under my ministry.

Mr Speaker, the agreement under the article (3) clearly states that:
“the intervention does not constitute a separate project or programme distinct from the project financed under original agreements” 

Article (4) on terms applicable states that:

“the amounts allocated shall remain subject to the terms and conditions including any other terms of payment or other financial terms stipulated under the original agreements pursuant to which the resources were provided by the fund for the original project.”

Mr Speaker, traditionally, all ADB loans under the original agreements are interest free loans payable over forty years with a ten year grace period and a 0.75 per cent of the principle as a commitment fee.

Mr Speaker, with your permission, I lay this document on the Table for further clarifications.

Mr Muteteka laid the document on the Table.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Mukanga: Mr Speaker, I would like to find out from the hon. Minister what terms were jointly agreed upon to monitor progress and improvements for this support that was being provided to the vulnerable families.

Mr Muteteka: Mr Speaker, initially the FSP used to be implemented by the Programme Against Malnutrition (PAM). However, this year, we have taken over the implementation of the programme in six provinces.

As regards the monitoring mechanisms that we have employed, our offices have acquired the capacity to implement and monitor the exercise. We are also working closely with the traditional rulers, churches and the general public to identify the vulnerable, but viable citizens in the communities. The aim is to see to it that we promote food security in the homes of the vulnerable, but viable people.

The monitoring is in the sense that all the beneficiaries of this programme will receive fertiliser and inputs for three years to start with and, thereafter, are expected to graduate so that we can pass on the programme to other beneficiaries.

I thank you, Sir.

Dr Scott (Lusaka Central): Mr Speaker, PAM has been going on for 18 years and has considerable capacity. I just wondered why the ministry is now taking over its functions. Additionally, how is it that we suddenly expect people to graduate when they have not been graduating? What is new or what has changed?

Mr Muteteka: Mr Speaker, indeed, PAM was tasked to implement the FSP programme. However, this was during the period that the ministry was building capacity. A number of officers have since been trained on how to manage this project and have graduated. They are back at the ministry to implement the programme and, therefore, there is no need for us to allow PAM to continue when we have built our capacity. Now that we have the capacity, we are satisfied that this programme will be properly implemented.

As regards people graduating, we expect that one should graduate in terms of food security, if he or she manages what he or she is given properly, in the three year period in which they receive the fertilisers. The three year period has been put in place to ensure that people are sensitised on the implementation of the programme. We believe that this is an adequate period for one to graduate.

I thank you, Mr Speaker.

Ms Kapata (Mandevu): Mr Speaker, 68 per cent of the Zambian population is in poverty. I would like to find out from the hon. Minister at which level has this programme improved the lives of vulnerable families.

The Minister of Community Development and Social Service (Mr Kaingu): Mr Speaker, this programme has helped in the rural areas. In fact, in the absence of this programme, the situation would have been worse. I agree with the hon. Member that the poverty levels are much more than the 68 per cent which she has mentioned because in some provinces like Luapula Provinces and Western Province, the poverty levels are at 76 per cent while Central Province is at 79 per cent.

Like my hon. Deputy Minister has said, we have implemented this programme through the Programme Against Malnutrition (PAM). When we made an assessment, we noticed that with assistance from the ADB, this programme was going to help the vulnerable. Of course, we need more resources to try to reach everybody.

I thank you, Sir.

Mr Mulenga (Kwancha): Mr Speaker, I would like to find out from the hon. Minister what quantitative methodology was used to ensure that the poverty levels that we talking about are addressed and what the Government is doing in that regard. Can you lay the papers of the Table so that we to know what we are talking about?

Mr Kaingu: Mr Speaker, the quantitative methodology that we are using is to ensure that the materials that we have acquired reach the most vulnerable people. We can use figures to substantiate what I am saying. Unfortunately, we do not have the figures right now. Although the hon. Member said that the poverty levels are about 10 per cent of our population, which is about 1.2 million now. However, with the mitigation programme that we have put in place, through the food security programme, these levels have been reduced from 10 per cent to about 7 per cent. To prove that, we need to show the figures, but we do not have them right now.

I thank you, Sir.

Mr Milupi (Luena): Mr Speaker, the hon. Minister gave out some figures on the poverty levels in this country. He said the poverty levels for Luapula Province were at 72 per cent, 76 per cent for Western Province and 79 per cent for Central Province. Could the hon. Minister indicate why and how poverty levels in Western Province have dropped such that even Central Province is now poorer than Western Province.

Mr Kaingu: Mr Speaker, I sincerely apologise if I said that the poverty levels for Luapula Province are at 72 per cent. However, the correct position is that Luapula Province and Western Province are at 76 per cent. This is according to the latest information collected from the Central Statistical Office (CSO). Although Central Province is highly urbanised, I am afraid, it is the poorest of all our provinces. It has been like that and statistics show that the poorest province is actually Central Province and not Western Province.

Furthermore, I would like to inform the hon. Member that we have put up a lot of initiatives in Western Province. For example, we have initiated the cash transfer programme in Kalabo and Senanga. The food security programme, which was implemented through PAM, performed well in Western Province. It has helped to mitigate the poverty levels.

Mr Muntanga: And Kalomo!

Mr Kaingu: Not Kalomo.

Laughter

Mr Kaingu: Of course, we are aware that poverty levels in Zambia are quite high and if it was not for the programmes that are being implemented through my ministry, the levels could have been higher than anticipated. My ministry is implementing several programmes like the food security pack, women in development and slow cash transfer. Therefore, the Government is trying its level best to address this problem. I know that when we say that, most hon. Members tend to blow hot air …

Interruptions

Mr Kaingu: … as somebody would want to say. However, it is very important that the Constituency Development Fund (CDF) helps us to mitigate these problems.

Hon. Opposition Members: No!

Mr Kaingu: Please, try to form up women clubs along side the clubs that we are forming in my ministry.

I thank you, Sir.

MKP TRUST HOSPITAL

157. Mr D. Mwila (Chipili) asked the Minister of Commerce, Trade and Industry:

(a) who the shareholders of MKP Trust Hospital in Lusaka were as at 30th June, 2009

(b) what the nationalities of the current shareholders are; and

(c) what special facilities exist at this hospital.

The Minister of Commerce Trade and Industry (Mr Mutati): Mr Speaker, I would like to inform the House that the shareholders for MKP Trust Hospital in Lusaka as at 30th September, 2009, were as follows:

 Shareholder’s Name  Number of Shares Nationality
 
 Muhamadi Yazid Merzouk 2,750,000 Algerian
 Han Yong 1,500,000 Korean
 Betty Mulongoti 2,025,000 Zambian
 Ho Un Ran    500,000 Korean

Mr Mutanga: Which Mulongoti?

Mr Mutati: Mr Speaker, the special facilities that exist at the hospital include the following:

(i) Oncology unity;
(ii)  Obstetrics and gnaecologist department;
(iii) Antiretroviral therapy unit;
(iv) Paediatrics department;
(v) Acupuncture unit;
(vi) Intensive care unit;
(vii) Pharmacy department; 
(viii) Emergency ambulance services unit.
(ix) Surgery department involving Obstetric, gynaecology and general cases;
(x) Pain management clinic;
(xi) Voluntary counselling and testing unit;
(xii)  Ear, nose, throat unit,
(xiii) Ophthalmology unit;
(xiv) X-ray and ultra sound department;
(xv) Electro cardio gram unit; and 
(xvi) Out patients services.

Mr Speaker, I thank you.

Mr Mukanga: Mr Speaker, I would like to find out what deliberate plans exist in the Government to ensure that Zambian medical professionals are encouraged to own, build and operate hospitals like this one.

Mr Mutati: Mr Speaker, the majority of surgery clinics and other clinics in this country are owned by Zambian nationals. I think that as a nation, we should shift from focusing purely on ownership to focusing on issues of value addition and contribution to economic development.

Mr Speaker, I thank you.

Ms Kapata: Mr Speaker, I would like to find out how many Zambian doctors work in this hospital.

Mr Mutati: Mr Speaker, I may not have the precise number, but I am told that the majority of medical doctors working at this hospital are Zambians.

I thank you, Sir.

Mr Mulenga: Mr Speaker, I would like the hon. Minister to tell this House the portfolio of shareholders as regards to nationals being is quantified. I would like him to say this.

Mr Mutati: Mr Speaker, the question asked by the hon. Minister is rather complicated. I just read out the shareholding at MKP Trust Hospital a minute ago.

I thank you, Sir.

Mr Kasongo (Bangweulu): Mr Speaker, I would like to find out whether the institution floats its shares on the Lusaka Stock Exchange (LuSE) in order to allow more Zambians to acquire shares in it.

Mr Mutati: Mr Speaker, in private investment, the investor makes the decision on how he wants to proceed. Secondly, there is sufficient investment space available for those that have the capacity to invest. Thirdly, there are facilities to access resources in order to create investment. Therefore, for Zambians, it is not only MKP Trust Hospital that they can invest in. There are other investment opportunities that they can pursue.

Mr Speaker, I thank you.

Mr Simuusa (Nchanga): Mr Speaker, I wish to find out from the hon. Minister whether this hospital receives any assistance in any form from the Government of the Republic of Zambia.

Mr Mutati: Mr Speaker, the role of the Government in this institution, as in most, is one of regulation. This hospital, like any other, is regulated by the appropriate Government ministry.

I thank you, Sir.

Mr Speaker: Order!

I would like to guide the honourable House that this question got on the Order Paper inadvertently. We normally do not discuss private enterprises in this House. As you have seen, the shareholding and the ownership are all private. I want to emphasise so that we do not set a precedent for the future.

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BILLS

SECOND READING

THE SUPREME COURT AND HIGH COURT (Number of Judges) (Amendment) BILL, 2009

(Debate resumed)

The Vice-President and Minister of Justice (Mr Kunda, SC.): Mr Speaker, in addition to what was said in support of this Bill, I wish to urge all hon. Ministers to support this Bill for the following additional information which I wish to give.

Mr Speaker, this Bill came about as a result of instructions given by the Judiciary to the Ministry of Justice recommending the increase in the number of Judges in the Supreme Court and High Court. I have read the report of your Committee which dealt with this Bill and from this report, it is clear that the Committee is against prescription of the number by Statutory Instrument.

Mr Speaker, we have conceded to this observation. As a result, we have circulated amendments as recommended by the Committee. I have also held further consultations with His Lordship, the Chief Justice, and we agreed that we should maintain the status quo whereby this honourable House should fix the number of Judges in both the High Court and Supreme Court.

Mr Speaker, as a sign of good faith on our part, we have circulated amendments in advance which will be effected at Committee Stage to increase the number of High Court Judges to fifty and Supreme Court Judges to eleven.

Mr Speaker, the increase in the number of Judges is necessary because of the workload in the High Court and also the need for its decentralisation. Currently, in subordinate courts, we have 150 magistrates’ positions filled. Some of the cases from the subordinate courts move up to the High Court. In the local courts, we have 985 local court justices. Now, if we maintain the number of Judges in the High Court at thirty, we have been advised by experts in the judiciary, His Lordship, the Chief Justice and, of course, Judges that this number is too low. There is a lot of pressure on the High Court because of the restrictive establishment.

We have a lot of pending applications by lawyers who would like to join the Bench. Furthermore, it will also be necessary because the Judiciary has a programme of decentralising operations of the High Court.  This means that in each provincial centre, we shall revert to the system of having resident Judges so that we can expedite the dispensation of justice.

Accordingly, I would like to appeal to all hon. Members that in view of this explanation, this Bill should not be controversial. By increasing the number of Judges, we are also looking at the future. We cannot keep the establishment at this low number of thirty. We are also creating an establishment which we can fill at any time. We have also been advised that fifty, which the Judiciary is recommending, is a good number. Therefore, I would like to urge all hon. Members to support this Bill and that, when Mr Speaker puts the question, we will vote yes.

 I thank you, Mr Speaker.

 Hon. Members: Hear, hear!

Question put and agreed to.

Committed to the committee of the Whole House.

Committee on Thursday, 29th October, 2009.
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MOTION

BUDGET 2010

(Debate resumed)

The Minister of Agriculture and Co-operatives (Dr Chituwo): Mr Speaker, I wish to thank you for allowing me to add my voice to the Motion moved by the hon. Minister of Finance and National Planning on 9th October, 2009.

Mr Speaker, let me start by conveying my condolences to the family to the late Mr John Mwanakatwe, SC., who was once a Minister of Finance and National Planning and also held many other portfolios. He was, indeed, an icon in our history.

Mr Speaker, I wish to commend my colleague, the Minister of Finance and National Planning, for presenting such a clear, focussed and an all-encompassing Budget Speech. Foremost, I would like to commend my colleague for retaining the theme ‘Enhancing Growth Through Competitiveness and Diversification’.  The retention of this theme speaks volumes.

Mr Speaker, I heard some colleagues say that the retention of the theme meant that there was little else to consider and that, probably, my colleague had run out of ideas. That is far from the truth.

Mr Speaker, if I may remind you: When one is listening to a melodious, sweet and scintillating song, what normally happens from the audience is that we hear shouts of “Encore, encore!” This means “Please, sing that song again.”

Mr Speaker, indeed, it is very clear that after analysis of the hon. Minister of Finance and National Planning’s speech by various professional bodies, it was acclaimed to be a Budget Speech that creates hope.

Mr Speaker, I listened very carefully to many colleagues who contributed and my confinement will be to the agricultural sector. The current data shows that, on average, the small-scale farmers produce between 1.5 to 1.7 metric tonnes of maize per hectare.

This translates into thirty to thirty-nine by 50-kilogramme bags of maize per hectare. From our findings, we also know that some of these small-scale farmers can actually produce between 3 and 3.5 metric tonnes per hectare translating into sixty to seventy by 50-kilogramme bags of maize. Therefore, it is clear that a combination of land preparation, choice of good quality seed and the utilisation of the fertilisers do impact on productivity. We know from farmers that have embraced conservation farming techniques that, in fact, this amount of produce can be produced in half a hectare. Hence, the rationale that instead of slogging our small-scale farmers that are able to control the weeds in the most parts of our country, surely, they can produce this in a much more pleasing manner and they can put their efforts elsewhere.

Mr Speaker this is not to say that there is no role for the co-operatives and farmer units. Indeed, with the fertiliser prices having come down, this is the time for co-operatives and farmer organisations to complement the Farm Input Support Programme so that the small-scale farmers can increase their cultivated land.

Mr Speaker a further advantage from the Farm Input Support Programme has been the fact that instead of 200,000 farmers benefiting, this time around, we shall have 500,000  small-scale farmers benefiting form the subsidy.

Mr Speaker, in order to assist the farmer, what we have done is to empower the extension and advisory services. The Ministry of Agriculture and Co-operatives will be handing over 400 motorbikes and more than seventy motor vehicles tomorrow. The motors vehicles are mainly for camp extension officers so that these officers can reach the farmer groups much more easily. Therefore, with the combination of the extension service and other modalities that I have mentioned, it is clear that we can achieve much more in ensuring food security at household level and leaving some for sale.

Mr Speaker, I listened to hon. Members of Parliament who posed a challenge with regard to what one would do in a polygamous marriage where there was more than one wife.

Mr Speaker, it is not possible for us to prescribe for every situation. This is where it is important to engage the camp agriculture committees at that level in their selection of would-be beneficiaries. This is an insurmountable problem.

Mr Speaker, let me go further in my contribution on the Farmer Input Support Programme (FISP) in poverty alleviation. Hon. Members lamented the high levels of poverty in our rural settings and alleged that the MMD Government, in fact, is doing nothing.  That is far from the truth. How possible is it that it is doing nothing, and yet there has been one demonstration that in order to provide the much needed maize market, this year, as at 23rd October, the Food Reserve Agency (FRA) purchased over 175,000 metric tonnes of maize predominately in the rural areas. This translates into K229 billion. The mandate of the FRA is to go out to the remote areas where it would not make sense for the private sector to conduct their business.

Mr Speaker, the short breakdown of the maize purchase is as follows:

 Province FRA Maize Purchased

Central  K22 billion
Copperbelt K7 billion
Eastern K38 billion
Lusaka  K19 billion
Luapula  K21 billion
Northern K65 billion
North-Western K12 billion
Southern  K40 billion
Western  K3 billion

As I stated earlier, this amount of money has gone into the pockets of the small and middle scale farmers in our rural setting.

Mr Mulonga: Hear, hear!

Dr Chituwo: Surely, is that not a contribution to poverty reduction and income generation in our rural communities? Surely, it is.

Sir, having changed the Fertiliser Support Programme (FSP) to the FISP implies that there will be more to this programme than merely fertiliser and maize seed. In fact, one major component is that of training. The farmer must be trained on how to correctly utilise the inputs.

Secondly, the addition of other seeds other than maize will be done. We are developing the rice seed to be included in the package for next year and give to those areas that traditionally grow rice. These areas are such as Chama, Chienge, Kaputa, Zambezi, Chavuma, Mongu, Kalabo, Senanga and Lukulu. In fact, this year, the FRA bought rice amounting to K2 billion from these districts. Therefore, one can see the contribution that rice growing will do once we have the proper pure seed next season.

Mr Speaker, an issue was raised by hon. Members with regards to why the Government spends so much money on the National Strategic Reserve. What are the factors that determine the quantity of the National Strategic Food Reserve? Clearly, we are still working on the duration of three months reserve which translates into 250,000 metric tonnes. This is determined by the finances available and the shortage facilities which, over the years, have improved to approximately 2 million metric tonnes capacity, the useable one readily available being 1.1 million metric tonnes.

To ensure good crop marketing from the small-scale farmers, we have embarked on a rehabilitation programme of silos. The House may recall that in June, this year, His Excellency the President, Mr R. B. Banda, commissioned the Lusaka Silos off Mungwi Road. Sir, on this programme, we note that the hon. Minister of Finance and National Planning has committed himself to assist us by continuing the programme of rehabilitation of silos in Ndola and Kabwe and also to upgrade the storage facilities in Serenje, Mbala and Mufumbwe as well as to upgrade the existing slabs in the country, particularly, in Chambeshi, Chisamba, Kalomo, Petauke and Kapiri Mposhi.

Sir, one lesson we have learnt from the surplus production of maize, this year, is that the marketing aspect has improved. It is in this regard that when His Excellency the President appointed his Cabinet, he directed that the hon. Minister of Agriculture and Co-operatives holds stakeholder meetings to come up with a private-public partnership marketing institution. This consultative process is underway.

Mr Speaker, one other important aspect the hon. Minister of Finance and National Planning mentioned in his speech is the issue of commercialisation of farm blocks. Clearly, one can see the commitment by my colleague in resource allocation to the Nansanga and to Luena arm blocks. We have on record that in each province, traditional leaders have allocated land for use as farm blocks. The only limiting factor is the issue of surveying. However, when this is done, we will continue to encourage foreign and local investors to invest in these very lucrative areas.

Sir, this is not to say that there is no farm block in the North-Western Province because there is. I admit that there is no farm block in Zambezi West because we do not work that way, but on a larger scale than at constituency level.

Mr Speaker, I would like to state that, over the years, we have found the progressive increase in the productivity generally. In 2000, we had only about 43,000 metric tonnes of maize having increased to 1.9 million metric tonnes in the 2008/2009 farming season.

One other important element the hon. Minister of Finance and National Planning mentioned was that of having a control over the issues of production and that is irrigation. Mr Speaker, since 2000, the ministry has embarked on development of small irrigation schemes. We, in the ministry, have been able to add to the existing irrigation area. In 2002, we added just over 500 hectares for rotational cultivation. Between 2005 and 2006, four irrigation schemes were completed adding another 327 hectares whereas in the 2007/2008 season a total of thirteen irrigation areas were completed adding a further 296 hectares.

Mr Speaker, irrigation project schemes undergoing constructions in 2009 would add, when completed, another 292 hectares. Clearly, there is a focus on small holder farmers. We are still engaging our partners to build large water bodies in Mufulira, the Central and Southern provinces in Lusitu area so that we can increase on irrigated land.

Mr Speaker, it is clear from what I have said with regard to agriculture and co-operatives that the hon. Minister of Finance and National Planning, in his planning, was focused and laid a foundation for further development in these areas. It is an act of faith that will stimulate our small-scale farmers to increase on productivity.

Mr Speaker, there can be no better beginning than proper planning and we, as a Government, are confident that, consistent as we are, we can truly make Zambia a bread basket of the region. These successes, notwithstanding the challenges facing the Ministry of Agriculture and Co-operatives around the production and productivity, the issues of strengthening, extension and advisory services for which by the way resources have been allocated, this year, together with the issue of value addition, I am convinced that we have demonstrated that agriculture, through co-operatives and other stakeholders, is the definite engine for sustainable socio-economic development.

Mr Speaker, I urge all hon. Members to support this well articulated 2010 Budget.

I thank you, Mr Speaker.

Hon. Members: Hear, hear!

The Minister of Lands (Mr Daka): Mr Speaker, I thank you for granting me the opportunity to add my voice to the Motion on the revenue and expenditure for the 2010 Budget brought to this House by the able-bodied hon. Minister of Finance and National Planning.

Laughter

Mr Daka: Mr Speaker, I want to describe this Budget as stupendous and splendid.

Laughter

Mr Daka: Mr Speaker, first and foremost, I would like to pay tribute to my late friend, Hon. Ben Tetamashimba whom Hon. Liato and I called the revolution. I also do not want to forget my late hon. Deputy Minister, Mr Hamir.

Mr Speaker, allow me to join the general policy debate of the Progressive hon. Members of this august House who are in support of the Motion before us.

Mr Speaker, on land and real estate, in an effort to mobilise more resources to meet our developmental objectives as a nation, the MMD Government has proposed measures payable under the Land Act such as the increase in consideration fees, ground rates and consent fees. These measures should be seen in the context of enhancing revenue for the Government and thereby improving service delivery. These measures are by no means meant to penalise property owners.

Mr Speaker, allow me to take a swipe at the growing tendency and practice amongst some of my fellow Zambians. It has been observed that some of our citizens when are leased land by the Government, resale it to foreigners at inflated prices that are astronomical and later come back to the Government to complain about not being considered for land allocation. There is a saying that goes “he who sets fire to his father’s house will inherit the wreckage.” If this trend continues, it is these people who sell land indiscriminately that will suffer at the end of the day. The Government will, therefore, deal firmly with culprits found wanting in this regard.

Mr Speaker, we have, therefore, planned to carryout various sensitisation programmes to the general public on the guidelines of land allocation, survey and registration of both customary and state land. As we sit in this House, we are councillors or shall I say that we have dual roles in the sense that we are part and parcel of local governance and, let alone, this House. What has been happening in the past is that when land is planned, the councillors and the officials in the council allocate as many as sixteen plots to one person. I have evidence to that effect. It is not by the colour of any party, but I would like to say that illegality is illegality whether by the MMD or by the Pact, which is unpacking, or by any other party. When land is allocated illegally, it is not the right thing.

Mr Muntanga: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Muntanga: Mr Speaker, yesterday, you banned all of us in the Opposition from mentioning the word “Pact.” Is the hon. Minister in order, now, to start mentioning it? Is he in order to ignore your ruling?

Interruptions

Mr Speaker: Order! The hon. Member for Kalomo is right. I said it very clearly, yesterday, that in this House, you are identified by the door through which you came, labelled, in most cases, political parties whilst others are independents. I said that I do not want to hear any reference to the word Pact in this House because it is not in accordance with the law. The hon. Minister will avoid making reference to it. Will the hon. Minister continue, please.

Mr Daka: Mr Speaker, I will take your valuable advice. My point is that whenever there is illegality being done, we want to apportion it to parties. However, what I would like to emphasise is that the Ministry of Lands or the Government at large have decentralised land allocation. At the district level, the council is in charge of planning and forwarding the names. At provincial level, we have land officers, but what is obtaining, especially here in Lusaka, in Bauleni, in particular, is that one councillor allocated himself sixteen plots, another eight with another allocating two plots.

Mr Muntanga: Arrest them.

Mr Daka: Mr Speaker, these facts have come to my office and what I would like to emphasise here, today, is that illegality is illegality regardless of the parties that we come from. The law will take its course on anybody founding wanting.

Mr Speaker, I now move to telecommunications.  Information and communication technologies (ICTs) are, nowadays, the cornerstone of any knowledge-based economy, which we, as Government, are striving to establish here in the country. It is said that, “those who refuse to drink water from the well of knowledge will die of thirst in the desert of ignorance.” What I am trying to emphasise is that the technology of fibre optic has come. Technology has come and no matter how much we may close our borders, it may by-pass us and go to the Democratic Republic of Congo (DRC) as C.Com has done today. C.Com is in the Democratic Republic of Congo, but Zambia has not slept because even the Zambia Electricity Supply Corporation (Zesco), when putting pylons and transmission lines inside there, there are built in cyber optic which we should all embrace.

Mr Speaker, when we go to our constituencies, today, we are able to communicate using cellular phones, which was not the case at one point. However, now, I can speak to anybody in Msanzala and find out what is happening there. This shows how much the Government has put in to enhance ICTs. Instead of us delivering mail by bicycle to Sikongo, one just taps on their computer and somebody receives the information on the other side.

Interruptions

Mr Daka: This is what we mean by technology transfer and technology arrival. Technology arrival has come to Zambia and we must embrace it. This is with the good governance of His Excellency, Mr Rupiah Bwezani Banda together with the late President, Levy Patrick Mwanawasa and may his soul rest in peace. The Government is committed to re-invigorating the telecommunications network and …

Interruptions

Mr Daka: … connectivity in the country. Projects such as the fibre optic are meant to enhance connectivity within the country and outside the world.

Mr Speaker, on the issue of introducing private sector participation in ZAMTEL, the sale of the 75 per cent shares is one way of enhancing the nation’s wealth not only through attracting private sector investment, but also enhancing technology transfer and a practical way of reducing the digital divide between the rural and urban areas and Zambia and the rest of the world. We cannot afford to fold our arms and hide behind the unknown as important national assets go to waste. These are measures which need to be supported by all well meaning Zambians. By appropriately introducing private sector strategy in the economy, the Government indirectly frees the scarce resources available to the other needy areas of the economy, where the private sector will not find economically attractive, but are socially desirable for the good of the people. A good example is ZANACO’s participation of a foreign investor. This is a clear testimony that ZANACO is growing bigger and stronger everyday. The Government means well.

Agriculture and Livestock

Mr Speaker, the global economic crisis has, once again, reminded us of the urgent need to diversify our economy from being dependent on copper to a broad-based economy where other sectors significantly contribute to the growth and development of our nation.

It is no secret that agriculture has been identified as a sector where growth is expected, hence the allocation of more resources in the 2010 Budget amounting to  K1,139.0 billion from K1,096 billion in 2009 for agriculture. This shows that the Government has improved on its commitment and promises.

Mr Speaker, the review of the Fertiliser Support Programme (FSP) already undertaken and the change of the programme to Farmer Inputs Support Programme will also ensure a broader coverage of the target group, a diversification of the crop range from large-scale farmers to small-scale farmers.

The challenge remains with us politicians to minimise the politicisation of this very good and well meaning national programme. I heard my colleague the hon. Minister of Agriculture and Co-operatives, who has said that farming blocks have been allocated or are earmarked in all provinces. I am glad to stand here and say that the Ministry of Finance and National Planning has allocated more money to the pocket of the Ministry of Lands for the survey programmes. We will ensure that surveys are done in all the provinces in Zambia to ensure that farming blocks are enhanced.

Transport, Roads and Railways

Mr Speaker, the Government continues to allocate adequate resources to the development of our transport network with a view to reducing the cost of doing business and improving access to rural areas. In 2010, a Budget sum of K1.461 trillion has been allocated to construction, rehabilitation and maintenance of roads, indeed, a true testimony of the Government’s commitment to ensuring that the economy grows using transport as a vehicle and catalyst.

Mr Speaker, it is the Government’s considered view that overtime, these investments being made in roads infrastructure will be supplemented with commensurate investments in the railway sector, so that the bulk of the cargo being transported on our roads will be shifted to rail and thereby make savings on the resources needed to maintain the roads.

Ms Lundwe: Hear, hear!

Mr Daka: Mr Speaker, I will come to education and skills training. Technology transfer cannot come with skills training. Investors have come from Malaysia and India, but we cannot allow Zambia to be a selling point. We should allow Zambia to be a manufacturing point of technology transfer.

Hon. Opposition Member: Hear, hear!

Mr Daka: If you look at all these countries that were industrialised during the World Wars, they were below the Zambian status at independence.

Ms Lundwe: Hear, hear!

Mr Daka: It is with skills training and proper foundation of education that we will ensure technology transfer arrives in Zambia.

Hon. Members: Hear, hear!

Mr Daka: Mr Speaker, I want to emphasise the point of investment here in Zambia today. When we hear a Zambian has bought shares in one of these organisations, we start murmuring. I want to remind my good friend, Hon. Muntanga, …

Hon. Government Members: Hear, hear!

Mr Daka: … that he was a shareholder in Tombwe.

Hon. Government Members: Hear, hear!

Mr Daka: … and I was wondering why he was surprised when the name Mulongoti was mentioned on M. K. P. Hospital.

Hon. Government Members: Hear, hear!

Mr Daka: We should be very happy …

Mr Muntanga: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Muntanga: Mr Speaker, is the hon. Minister in order to …

Mr Speaker: Order! Is this the second time he is raising a point of order on this speech?

Hon. Members: Yes.

Mr Speaker: Aah, ah! May you resume your seat. The hon. Minister may continue.

Laughter

Mr Daka: Thank you, Mr Speaker. Tombwe will be celebrating tomorrow and my good message to our colleagues here is that when investors come, even on land acquisition, I have educated my own traditional rulers that when people are acquiring lodges, they make sure that Zambians have 25 per cent of that land allocation and those who are investing 25 per cent. It is important that we participate in all these ventures. We are always negative, that is why we always cut our tails not knowing that we are going to bleed because that tail is part of us. We are here temporarily. At one point or the other, we will be ordinary Zambians. We will be in the street and people will be laughing at us and asking why we brought miners from all over the world, but did not have any shares. There is a better way of doing business. That is by buying shares and yet, we want to starve ourselves and be jealous of something we will never have. When something is doing well, we must appreciate and praise the other person. That is how we will uplift the standard of living in this country.

Hon. Government Members: Hear, hear!

Mr Daka: We have always been negative against each other.

Mr Speaker, I want to urge my fellow Members of this House that as hon. Minister of Lands, my door is very much open. We will not only allocate land to foreigners, but we want all Zambians, including you, Members of Parliament, to come over and acquire land for productive purposes and not for re-sale.

Hon. Members: Hear, hear!

Mr Daka: Mr Speaker, the Government of Mr Rupiah Bwezani Banda is a well meaning Government because it is not closing eyes to anybody, but bringing everybody, including Hon. Request Muntanga, to see me and the President whenever he so wishes. This is how we are inclusive in this Government. As leaders in charge of the Government today, we want to look and treat everybody as a citizen of Zambia. However, what is absurd to note is that we will be watching wrong things happening and saying it is the MMD, PF and UPND cadre who is a Mayor who is selling plots there. For me, the agents of land is all councils despite the position of who is in the council whether it is the Opposition or ruling, but at the end of the day, when legalities are being done, we will suspend that council, they will not allocate or plan that land because they have done wrong things.

Hon. Opposition Member: Quality.

Mr Daka: Mr Speaker, as we stand or as we sit in this House, we must take cognisance of the fact that we are leaders for a temporary period. When we leave, whatever laws we have made in this House will catch up with us, but we must be very careful with legality and we must not section illegality to a particular face or colour because when something is wrong we must condemn it.

Mr Speaker, I want to leave my friends with sometime to also contribute meaningfully and therefore, I have no further words to say.

I thank you.

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

The Minister of Tourism, Environment and Natural Resources (Ms Namugala): Mr Speaker, I thank you very much for giving me this opportunity to also contribute to the Budget Motion on the Floor of this House.

Mr Speaker, to start with, let me commend the brilliant hon. Minister of Finance and National Planning for a very inspiring Budget presented this month and to take effect in 2010. This is a milestone and hon. Members must congratulate themselves for the decision they took to change the Budget Cycle. When I came to this House eight years ago, I found a debate on the need to change the Budget Cycle by the likes of Hon. Sibetta, Hon. Sichinga and Hon. Nawakwi. For all the hon. Ministers and hon. Members of Parliament at that time, it was just something to talk about. However, in came the visionary leadership of His Excellency, Rupiah Bwezani Banda, which questioned why this could not be done. We have done this and the decisive and visionary leadership of President Rupiah Banda must be commended for this.

Hon. Government Members: Hear, hear!

Ms Namugala: This is a Government of responsible men and women who realise that they have to makes decisions, sometimes unpopular, but if …

Mrs Phiri: Question!

Ms Namugala: … they are for the good of the people of Zambia, we do take them.

Hon. Government Members: Hear, hear!

Mrs Phiri: Question!

Interruptions

Professor Lungwangwa: Angelina chikokoshi.

Ms Namugala: Mr Speaker, a budget can be a very effective tool against poverty, depending on how well balanced it is. It is an instrument of economic policy. The 2010 Budget and its theme of “Enhancing Growth Through Competitiveness and Diversification” shows seriousness and focus and is a reflection of this Government’s commitment to continue on the path of economic growth through diversification. I, therefore, strongly urge hon. Members of Parliament to ensure that they reflect on the theme for the 2010 Budget because for Zambia to sustainably develop, there is a need to diversify our economy. This diversification must not slow down when copper prices increase. I know that the Government is focused on ensuring that, through this Budget, we develop the non-mining sectors such as agriculture, manufacturing and tourism.

Mr Speaker, we should never again, as a country, put all our eggs in one basket. Whereas it is fashionable to have a new theme for every Budget, the serious and committed hon. Minister of Finance and National Planning says, “The essence is not the theme, but the content and focus of the Budget.” Congratulations, hon. Minister, because, indeed, the essence is the focus of the Budget and in 2010, we are continuing with the theme of “Enhancing Growth Through Competitiveness and Diversification”.

Mr Speaker, our country has been having a deficit Budget, at least, for the eight years that I have been in this House. This simply means that our revenues are not sufficient to cover all our intended expenditure. Allocation of national resources is, indeed, as Hon. Mulonga put it last week, exactly the same as running a household. If you do not have enough, you borrow or tax your people to close up the revenue gap.

Mr Speaker, the hon. Minister is not proposing to tax the people more, but to borrow in order to close up this gap and I agree with him on this matter. In fact, you will note that whereas he could have simply kept the Pay-As-You-Earn (PAYE) exempt threshold at K700,000 per month, he has provided relief to our people by increasing the threshold to K800,000. I hope hon. Members have noticed that K85 billion will be left in the pockets of our people. This is real money and not the imaginary money that we have heard of from some of our opposition political leaders without telling us where the money they intend to put in the pockets of our people will come from.

Ms Lundwe: Hear, hear!

Ms Namugala: Mr Speaker, I have heard some hon. Members in this House say that the contribution of personal tax, PAYE, to the national resource envelope is too high and that corporate tax should be more. I would like to demonstrate to the contrary by just highlighting a few examples of these two types of tax in other countries. In the United Kingdom, personal tax contributes 27.2 per cent of the national revenue base while corporate tax amounts to only 11.1 per cent. In the United States of America, which is a big economy, personal tax is at 45 per cent and corporate tax is at 12 per cent. In Zambia, the Government is proposing 19.2 per cent corporate tax. Clearly, even in developed countries personal income tax is a large contribution to national tax receipts.

Mr Speaker, what can we, therefore, do to improve our revenue and address the poverty situation in our country? In my opinion, Zambians must become more productive. We need to have a new mindset towards work. In other words, the output per man hour of Zambians must be improved. Currently, Zambian workers, on average, cannot even compete with some workers in the southern African region. If, for example, you go to a construction site, you will find our people cooking nshima as early as 1000 hours. By the time a Zambian worker will have laid one block, a Chinese worker will have laid ten.

Interruptions

Ms Namugala: Mr Speaker, this is a fact that we must all come to terms with and ensure that we help our people to change their mindset towards works. It is true that we could be more productive and that our people’s attitude towards work is very negative.

Hon. Government Members: Hear, hear!

Ms Namugala: Therefore, we might have the workers, but the quality and efficiency leaves much to be desired.

Mr Speaker, the other measure, and a sure way of improving our revenue base, is to encourage more foreign direct investments by providing an enabling environment for investors to bring their investments to Zambia.

    For this to happen, we must refrain from issuing derogatory statements such as the Chinese this or the Chinese that. What we need are jobs. Whether they are provided by the Chinese or not, our people need jobs. After all, if the Chinese are willing to bring their money and invest without the usual conditionalities that we have grown to expect from other co-operating partners, we shall have a serious and caring Government that accepts such investment. In addition, if the investors are willing to accept and respect our laws, it does not matter what colour they are; they can be blue, black or yellow as long as they add value to the lives of our people.

Mr Speaker, there is a need for us to develop infrastructure in the country and this has been debated by several hon. Members of Parliament. The need cannot be over emphasised. In my opinion, the proposal by the hon. Minister of Finance and National Planning, in paragraph 66 of his speech, and I quote:

“While we will continue to contract concessional debt as a first option, however, for high return investments, the Government may consider seeking non-concessional financing.”

This has my full support. Borrowing is acceptable if it is for the right reasons. To me, high return investment is a very good reason for Zambia to borrow. Please, hon. Minister, borrow in order to complete those roads that are discussed in this House year in and year out if that makes economic sense.

Mr Speaker, for hon. Members who are complaining about the budget being the same as that for 2009, I wonder whether they have noted, for instance, that the allocation to water and sanitation has doubled. Hon. Members, the allocation for water to our people has gone up two times. Have you noticed this? You are saying that the budget is the same as that for 2009, and yet you have eyes, but cannot see.

Mr Speaker, Hon. Gerry Chanda, yesterday, in his debate, was nostalgic about the four meals a day he used to have at secondary school. Hon. Member, free does not mean zero cost. There was a cost and there is still a cost. Maybe, we are paying for it now. The question I have is: For all that we enjoyed and for all the memories we have, was that the most prudent way to spend the national resources at that time? I live that question to the hon. Members to debate and answer.

Mr Speaker, some hon. Members on your left are waiting to come to this side of the House and they are saying that when they come to this side of the House, they will change things.

Mrs Musokotwane: We are coming there!

Ms Namugala: I have news for them. They will not come to this side of the House in the next 100 years.

Interruptions

Ms Namugala: We are here providing the leadership that the nation needs. Keep hoping, but I can assure you, hon. Members, that you have a long time to wait.

Mr Speaker, in paragraph 75 of the hon. Minister of Finance and National Planning’s speech, he has issued a timely warning to public servants and hon. Members of Parliament, that he will take the necessary action for any public servant who dares to misappropriate public resources. I support this because we can no longer tolerate public servants who amass wealth at the expense of the poor people in Muyombe. We cannot continue to tolerate it because it is wrong and we must support the hon. Minister for making it very clear to public servants not to misapply public resources. In short, do not steal money that belongs to an old woman in Kaputa.

In this regard, let me call on all well-meaning hon. Members of Parliament to rally behind this Government and denounce misappropriation of public resources. Let us stigmatise the public servants who are found wanting in this regard so that society rejects them. It should not be fashionable for a junior government officer to own mansions.

Mrs Phiri: But senior officers?

Ms Namugala: Working for six years or less should not be fashionable for public officers to amass wealth at the expense of our people and this point is non partisan. After all, these resources are meant for our people. Therefore, through you, Sir, let me urge the hon. Members to assist the Government in ensuring that we stigmatise those who take resources from the poor people.

Mr Speaker, we must monitor and sensitise our communities against theft of public resources. Hon. Minister of Finance and National Planning, we are right behind you on this one because we think it must be done.

Lastly Sir, we, as Zambians, have become very good at being negative about every issue. The hon. minister said in his statement, and I quote:

“Stop contaminating the minds of the young ones with negative attitudes. Instead, let us challenge, encourage and inspire our youths so that they can achieve feats even under difficult conditions. This is what will move our country forward”.

Like in every situation, if you only chose to see what is bad, you will see it. You can also chose to see what is good and you will see it. Hon. Members, let us not be negative about the process of development.

Mr Speaker, for those who want to infect us with the negative attitudes, smile, we are in charge this side. Take comfort, we are driving Zambia forward and we are taking Zambia to prosperity.

Hon. UPND Members: Forward!

Ms Namugala: Mr Speaker, let be talk very briefly on the political scene. If politics are not going to advance the process of development, then they are of no good to anybody or the people of Muyombe. I feel that politics must be a vehicle to foster economic and social development for all our people.

Mr Speaker, while the world is moving forward, becoming small and digitalised, it is trading in intellectual services and is outsourcing almost everything such as goods and services, we, in Zambia, are practicing tribal and politics of insults while the rest of the world is competing to initiate the future. We are throwing stones at our political opponents and using abusive language to campaign. Surely, we are going in reverse. For me, it does not matter whether it is this side or that side of the House that practices tribal politics, tribalism is just wrong and it should not be tolerated by anybody. Tribalism is retrogressive and bad for our children and the future of this country. Therefore, it must not be tolerated. The world is in motion, hon. Members, it is moving forward. Therefore, let us not take our country backwards. Let us catch on with the rest of the world.

I thank you, Sir.

Hon. Government Members: Hear, hear!

The Minister of Home Affairs (Mr Mangani): Mr Speaker, I thank you for giving me this opportunity to contribute to the debate on this very important motion presented by the hon. Minister of Finance and National Planning.

From the onset, I would like to thank the hon. Minister for presenting an excellent budget for 2010. I further wish to commend the hon. Minister of Finance and National Planning for having prepared a budget that is focusing more on utilising local resources. It is very important either as individuals or Government, that we focus more on what we are able to do as a Government or individuals because if we rely too much on external help, we will end up compromising ourselves in difficult situations.

Mr Speaker, our country is faced with a lot of challenges such as unemployment, drug abuse and many other criminal activities which eventually end up being handled by my ministry. Some of those criminal activities are very detrimental to development of our country. The issue, for example, of drug abuse or trafficking has become a serious problem in the country and, unfortunately, even some of our young boys and girls end up being used without knowing what is happening. A case in point is that of a young girl I talked about a few days ago by the name of Jean Daka who was apprehended in Singapore. I had the opportunity to interview this girl to find out what really happened. I was shocked to hear the story that the girl was purely used by very sophisticated people. This is a girl I think reminds me to caution hon. Members that when immigration officers ask you a simple question, “Did you pack this luggage yourself or witness packing this luggage?” We easily get annoyed and we think that it is a foolish question. This girl, unfortunately, was enticed by sophisticated people to take a birthday present to someone in Singapore. The luggage was packed by a so-called Ephraim and immediately she arrived there, within a short time, the police were on her and got the luggage away. Fortunately, I must thank one important person in all this who is a local lawyer in Singapore who volunteered to assist this girl without any reward. She is only nineteen years old and has been there for two years. She is now twenty-two years old and could still be prison. Most of our lawyers could have demanded for a lot of money.

However, the point I am trying to emphasise is that here is a case of a young girl who was used and would have been in a big problem almost messing up her future. One question I asked her when I met her was, what is your message to Zambians as I go? She said, “Please, Minister, go and tell, particularly the young ones to be very careful”. I want to emphasise that we need to be extremely careful with some of the criminals who have invaded us and are taking advantage of our good environment.

As regards drug and alcohol abuse, which contributes to criminal activities, I am glad to report, Mr Speaker, that my ministry has achieved significant success in dealing with the challenges related to this. These challenges have to be managed properly as they border of national security.

For the fist time, I want to thank my sister in-law, the hon. Member for Munali, for being very active in ensuring that the under aged who are patronising the bars, were taken to the police station a week ago. This is a challenge and is what leadership entails. Leadership does not simply mean criticising, but also getting involved if you identify a problem.

Hon. Members: Hear, hear!

Mr Mangani: I was very happy that she was very active on this issue. We need to manage this process because if you are going to allow the young ones to go to bars as early as 1800 hours and come back very late, it is not good for our nation. I am grateful, therefore, that 2010 Budget shall continue to support most of the programmes which are being undertaken by my ministry.

Mr Speaker, peace and security is the prerequisite to the creation of a conducive environment for all other programmes to strive. Be it health, business, education, political or even sporting activities. We need to undertake all these in a peaceful environment. Consequently, it is imperative that the maintenance of law and order is enhanced by strengthening the capacity of the law enforcement agencies and securing adequate support from all stakeholders.

Mr Speaker, some of the recent crimes that have occurred in our country are a source of great concern. For example, the hon. Member for Kantanshi, Mr Mukanga, raised a very important issue involving some murder cases in Mufulira. Indeed, we are active in solving this problem, but we cannot understand how a human being can almost turn into an animal, hunt fellow human beings, and kill them. We are appealing to the community to work together with us so that individuals who develop such habits are brought before the courts of law. A similar case took place in Chipata where a woman and two daughters were murdered a week ago and these murders are happening everyday. I am happy that the hon. Minister of Finance and National Planning has given us support to make sure that we continue providing the security required to combat these crimes. I wish to assure the House that the Ministry of Home Affairs will ensure that the perpetrators of all these crimes and any other persons who disturb the peace in this country are brought to book.

I also wish to appeal to members of the community to assist the police by reporting any case because in most cases, the police do not work in isolation. The concept of community policing is to enable the community help the police combat crime. If you notice something very strange in your communities, let us work hard to support the police.

Mr Speaker, in the spirit of team work, may I also appeal to fellow politicians to desist from making careless political statements. These sometimes have the potential to upset one group against another …

Mr Daka: Lubinda.

Mr Lubinda: Aah!

Mr Mangani: … and this is not good for the development of this country. This has led to a situation where I have seen, lately, politicians being chased or hunted and this is very unfair at this time. This has also led to a situation where we are constantly in an election mood. We are not focusing on the plight of our people. I think there should be time for us to focus on national development.

Hon. Government Members: Hear, hear!

Mr Mangani: May I also mention, Mr Speaker, that we celebrated forty-five years of our independence, but we should be very careful not to practise politics with either a regional or tribal inclination. This is uncalled for at this day and age and is a recipe for anarchy.

Mr Speaker, I wish to emphasise that the benefits of peace and security are not only a preserve of those in power or authority. This is why when we hear that some hon. Members in the Opposition or any members of the community have been attacked, we need to work hard to ensure that they are helped in one way or the other. We feel this is important because we have to provide security for every Zambian.

The positive offshoots of peace are enjoyed by everybody in this country whether in authority or not and politician or not. It is also the responsibility of all of us to safeguard the peace that we have so far enjoyed.

Mr Speaker, I was privileged to attend an important African Union Summit on Refugees which was held in Kampala a week ago. The experience from there was quite emotional. We were told of situations where, simple things that we thought could not create tension ended up in people killing each other and caused a lot of problems in that country.

Major Chibamba: Even here.

Mr Mangani: It is important to use that experience. As Zambians we have managed to keep peace and have kept refugees for a long time, but should be careful not to fall into the traps of what has happened in other countries.

Mr Muntanga: Do you hear that, Daka?

Mr Mangani: Mr Speaker, I wish to further commend that hon. Minister of Finance and National Planning for ensuring that the welfare of our men and women in uniform is taken care of in next year’s Budget. This is evident through the provision of funds to continue with the programmes of infrastructure development. Construction of border control posts, police stations and police houses will boost the morale of our officers who help us maintain peace in the country.

Mr Speaker, in conclusion, …

Mr Muntanga: Continue!

Mr Mangani: Mr Speaker, I call upon all patriotic Zambians and all those that live in this country to a big challenge. Yes, indeed, we may have taken peace for granted, but we have a commodity that we have to preserve all the time.

I thank you, Sir.

Hon. Members: Hear, hear!

Hon. Member: Well done.

The Deputy Minister for Lusaka Province (Mr Shawa): Mr Speaker, allow me to express my deep and fervent gratitude to you for according me this chance to also add my humble voice on to this debate on the floor of this House and indeed that of Lusaka Province.

Hon. Government Members: Hear, hear!

Mr Shawa: Mr Speaker, let me seize this opportunity to congratulate and welcome Hon. Geoffrey B. Mwamba, popularly known as G. B. M., to this reputable House.

Mr Mulyata: Hear, hear!

Mr Shawa: Mr Speaker, you and I come from the same background, even if I am may not know your flavour, in that we went through the science of pedagogy.

Hon. Members: Hear, hear!

Mr Shawa: When teaching either children or adults, we must not be stingy or economical with praise and encouragement. For example, if a child gets an answer wrong in any subject, it is not advisable to shout at this child and use terms such as “You are dull”, “You are useless” or “You are hollow”. Rather, in a warm voice and friendly manner, encourage and help your student to develop interest in the subject.

Mr Speaker, a discouraging person is also referred to as a wet blanket.

Hon. Government Member: Hear, hear!

Hon. Member: Ema teacher ayah!

Mr Shawa: Mr Speaker, the Budget Speech delivered by Hon. Dr Situmbeko Musokotwane, is a wonderful one that brings hope and a spirit of continuity.

Mr Speaker, the last thing we want as mature and conciliatory people on your right hand side are battles, let alone battles of insults, mudslinging and violence.

Mr Speaker, I was very sad recently that in one of the campaign programmes, I witnessed materials of military nature like tear gas being used on some people. This must not be encouraged in Zambia.

Mr D. Mwila: Point of order!

Mr Shawa: Mr Speaker, as leaders, we must not be violent and quarrelsome. A leader must be self controlled, respectable and gentle.

Major Chizhyuka walked into the Chamber.

Hon. Member: Major!

Mr Shawa: Mr Speaker, let our debates …

Hon. Members: Hear, hear!

Mr Shawa: Let our debates be inspiring and educative.

Hon. Members: Hear, hear!

Mr Shawa: Mr Speaker, in the 2010 Budget, the Lusaka Province …

Mr Speaker: Order!

Business was suspended from 1615 hours until 1630 hours.

[MR SPEAKER in the Chair]

Mr Shawa: Mr Speaker, before business was suspended, I was saying that in the 2010 Budget, Lusaka Province has been allocated K30.2 billion against the K27.5 billion allocated in the 2009 Budget. The 2010 Budget constitutes K13.3 billion as personal emoluments, K8.3 billion as the Poverty Reduction Programme Fund, K8.7 billon as recurrent departmental charges and K12 million as grants.

Mr Shawa coughed.

Mr Shawa: Excuse me. Mr Speaker, under the Poverty Reduction Programme, the province has channeled more resources towards stimulating economic growth and poverty reduction through infrastructure development, especially in health, education and road infrastructure as well as agriculture development.

Mr Speaker, as a province, our focus in 2010 will be to complete most of the projects started in the last two years.

Mr Speaker, under the health sector, the Lusaka Province continues to ensure improved quality of life for all by improving accessibility to health services through  the provision of health infrastructure as close to the community as possible. The focus will be on the construction of the Lusaka Provincial Hospital in the premises of Chainama, the Makeni Clinic and completion of the Chaisa Health Centre in Lusaka as well as the Bunda Bunda Health Centre and a theatre block at Chongwe District Hospital.

Mr Speaker, I would like to thank the hon. Members of Parliament in these areas for their support.

In fact, we have already completed Chaisa Health Centre and what is remaining for now is the fence.

Hon. Government Members: Hear, hear!

Mr Shawa: Mr Speaker, still under construction, we are constructing institution houses at Kafue Hospital and Kasinsa Rural Health Centre in Luangwa.

Sir, in education, in line with the Government policy of universal basic education, the province continues to promote access to educational facilities through infrastructure development and the provision of school requisites which include teaching materials, laboratory equipment and furniture. Regarding infrastructure development, the province will continue to construct laboratories, additional classroom blocks, dormitories and other infrastructure in Lusaka, Chongwe, Kafue and Luangwa districts.

Furthermore, high schools are being constructed in Lusaka and Luangwa. For the information of the House, a contractor has already gone to Luangwa and will soon begin working on the project.

Mr Speaker, others are seeing nothing in their areas yet this Government under the leadership of His Excellency President Rupiah Bwezani Banda is taking development to virtually all parts of this country.

Sir, this is not surprising at all because even the son of God once said, “You have eyes, but cannot see. You have ears, but do not hear.”When he healed the ten leapers, only one of them went back to say thank you. Sometimes it is very difficult for people to acknowledge even the good that is taking place in their areas.

Mr Speaker, just the two simple words, ‘thank you’ are very difficult to come out of some mouths. Only attacks and condemnations come out at supersonic speed.

Sir, let me also talk about the road infrastructure. I would like to commend our working Government for the earthmoving equipment which has helped improve the state of some of the roads in the province. The province will continue to rehabilitate a number of roads under the recently established Rural Roads Unit. The Rural Roads Unit will conduct maintenance works on all feeder roads and other priority roads in the province.

The main roads that require urgent attention include the D145, Luangwa Road, D177, Kalubwe Road, D170, Old Mumbwa Road, D158, Kafue Road and Nyamanongo Road. In order to improve the capacity of the Rural Roads Unit, the 2010 Budget for the unit has been increased by more than 50 per cent. We are very grateful to you, hon. Minister of Finance and National Planning. This will allow the unit, this time around, to carry out more maintenance works on the roads in the province to help improve the movement of goods and services.

Mr Speaker, with this Budget, we have hope in the areas of tourism, mining and agriculture especially in the areas of fish outgrower scheme which we have initiated in this province. We have also introduced some activities in the livestock improvement.

Sir, once again, this is a good budget and it is full of hope for the helpless, hopeless, poor and vulnerable people of Lusaka. Let the Budget be supported very progressively. Let Lusaka Province continue to be a destination for serious investment.

I thank you, Sir.

The Minister of Livestock and Fisheries (Mr Machila): Mr Speaker, I thank you for giving me the opportunity to make a statement on the hon. Minister of Finance and National Planning’s 2010 Budget Speech especially on issues relating to the Ministry of Livestock and Fisheries Development. I wish to commend the hon. Minister for the way he presented his second budget in the same calendar year.

Sir, I also wish to congratulate the former MMD candidate for Kabwata Constituency on his election as Patriotic Front (PF) Member of Parliament for Kasama Central.

Laughter

Mr Machila: It is a pity he did not win Kabwata in 2006 for the MMD.

Laughter

Mr Lubinda: Iwe Bradford, ni Budget iyo yamene ukambapo!

Mr Machila: Mr Speaker, it is gratifying to note the emphasis accorded to the livestock and fisheries sub-sectors. The livestock and fisheries industries have immense potential to contribute to the development of our country. We are truly going to be the next copper of this country.

The new Ministry of Livestock and Fisheries Development will focus on the development of the livestock and fisheries sub-sectors and effectively tackle the constraints that the two have been faced with over time.

The policy of the ministry will be to control livestock and fisheries diseases  and increase the production and productivity of the two sub-sectors.

Interruptions

Mr Speaker: Order! I want to follow the debate.

Mr Machila: Mr Speaker, the ministry has three core departments which are:

(a) the veterinary services, whose mandate is disease control, protection of public health and the control of disease carriers such as ticks, fleas, tsetse flies and others;

(b)  livestock development, whose mandate is to increase livestock production efficiency and support livestock trade; and

(c) fisheries development, whose mandate is to ensure the sustainable utilisation of fish resources in fisheries and the promotion of aquaculture development in Zambia.

Mr Speaker, small-scale farmers are actively taking part in milk production through their involvement in dairy cooperatives. Milk collection centres have been set up by non-governmental organisations (NGOs) in collaboration with the Government. Farmers are also able to access dairy loans from Micro Bankers Trust. This has helped small-scale farmers to generate incomes. This helps to alleviate poverty.

Sir, support to small-scale farmers is vital so that they can break the cycle of poverty. To this effect, my ministry is subsidising the vaccination of foot and mouth disease, east cost fever and contagious bovine pleuropneumonia. My ministry is also supporting fingerling production and the construction of milk collection centres.

It is pleasing to note that farmers are now actively taking part in livestock disease control. This is evidenced by the increase in interaction with extension staff and increased purchases of vaccines and chemicals. Participation in herd health schemes spearheaded by the private sector has more than doubled. This is further evidence that stakeholders are now willing to invest in livestock production.

Mr Speaker, the construction and rehabilitation of infrastructure such as laboratories, office blocks and the electrification of fish farms has improved service delivery due to improved working conditions. In addition, the rehabilitated Government fish farms have contributed positively towards the supply of quality fingerlings to fish farmers. Furthermore, capacity is being built in communities to take up the challenge of co-managing the resources on natural waters. This is aimed at sustaining these resources and enhancing public-private-partnerships(PPPs).

Sir, my ministry is committed to spearheading veterinary and livestock development through demand-driven research technologies and livestock disease surveillance activities. Some of the biggest challenges in the sector that are being actively pursued are:

(i) water for the animals;

(ii) affordable and quality feed (both for commercial feed and grazing grounds); and

(iii) steady supply of breeding and production stock.

Mr Speaker, the creation of a livestock disease free zone in Lusaka, Central and parts of Copperbelt provinces that my ministry has embarked on, will help make the livestock industry a major contributor to economic growth of this country. To ensure that the large investments that are being put in this area yield maximum benefits, the departments of veterinary services and livestock development and the private sector are working in partnership . It is envisaged that livestock production will double within the next ten years due to increased investment.

Sir, the main thrust in 2010 for the livestock sector will be the operationalisation of the livestock disease free zone which include the following:

(i) establishment of livestock breeding centres;

(ii) provision of livestock service centres;

(iii) rehabilitation of camp houses for extension officers in order to improve; the working and living environment of its staff;

(iv) the procurement of transport; and

(v) livestock and fish production.

Mr Speaker, my ministry is geared to implement the above programmes with the support of this august House, the private sector and the farming community.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

The Minister of Labour and Social Security (Mr Liato): Mr Speaker, I would like to start by thanking you for giving me this opportunity to debate the 2010 Budget as presented to this august House by the hon. Minister of Finance and National Planning.

Mr Speaker, from the outset, I want to thank the hon. Minister of Finance and National Planning for coming to this House and presenting a Budget that gives hope to our people. The hon. Minister presented a Budget for 2009 at the beginning of this year, which was widely condemned in this House by the hon. Members of Parliament on your left.

Mr Speaker, I want to say that it is the same Budget which was widely condemned that has managed to pull us through a difficult time that we were going through during the global economic crisis or the economic credit crunch. In emphasising the point, I want to say that it is not everything that our colleagues on your left condemn that is truly bad.

Mr Speaker, in the 2010 Budget, the hon. Minister gives us a reflection of the difficult moments that we went through during the credit crunch. During that time, we obviously lost many jobs. A few months ago, there were apprehensions in the nation. Our detractors were everywhere shouting slogans and prophesising doom. This was due to the challenges that we were facing at the time. There were job losses, loss of revenue and gloomy projections in our Gross Domestic Product (GDP) growth. However, as I speak today, there is a new feeling of recovery on the horizon. Our mines are back on track and the jobs of our people have been regained, meaning that the Government’s stimulus package has no doubt given us the fruits. This is what I call giving hope to our people.

Mr Speaker, it is, indeed, phenomenal that while economic growth for Sub-Saharan Africa is expected to plunge to 1.2 per cent in 2009 as compared to the buoyant growth of 5.5 per cent in 2008, our economy is expected to register a 4.3 per cent growth. This, again, is giving hope to our people.

Mr Speaker, looking at the 2010 Budget and the distribution of resources in this Budget, I stand here confident in my support of the macro-economic objectives this Budget seeks to pursue, namely the attainment of over 5 per cent GDP growth rate, 8 per cent end of year inflation, and reduction of domestic borrowing to 2 per cent of GDP. This is, indeed, offering hope to our people.

Mr Speaker, without doubt, we are on the right track as a nation. Resources have been allocated to develop tourism through infrastructure development in the Northern Tourism Circuit and other places, building of roads and rehabilitation of airports. Resources have been allocated to improve agriculture through infrastructure development such as farming blocks, feeder roads and rehabilitation of silos.

Mr Speaker, there is no doubt that for my ministry, the activities in the agricultural sector, tourism industry and the construction business, will create a lot of jobs for our people.

This visionary leadership of His Excellency, President Rupiah Bwezani and the MMD, is focused on creating jobs for its people. While our colleagues on your left may not be seeing this, it is very clear that in this Budget, a lot of money has been allocated in the areas of tourism, agriculture and the construction industry. Our ministry will simply have to embark on the exercise of registering how many jobs will be created this year.

Mr Speaker, just here in Lusaka, the National Pensions Scheme Authority (NAPSA) has invested a sum of US $200million in various business activities and ventures involving residential and commercial properties. All these will give thousands of jobs to our people. Furthermore, this listening Government has provided for tax relief for the differently abled and increased the allocation towards social protection to cater for retirees and the vulnerable groups our society. This, too, is giving hope to our people.

Mr Speaker, six years from now, the world will be taking stock of the achievements made towards the attainment of the millennium development goals (MDGs). It is only through the visionary leadership of President Rupiah Bwezani Banda, as reflected in a budget such as this, that Zambia will be among the family of the nations that will be there to boast of having drawn its people out of extreme poverty.

Mr Speaker, the Ministry of Labour and Social Security wishes to register its profound pride in this year’s budget because, through it, we are very confident that more jobs will be created for the people.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr Chisala (Chilubi): Mr Speaker, first and foremost, I would like to thank you for according me this chance to contribute to the Budget Speech presented to this august House by the hon. Minister of Finance and National Planning.

Mr Speaker, I want to congratulate my brother, Prince Geoffrey Bwalya Mwamba …

Hon. PF Members: Hear, hear!

Mr Chisala: …for emerging victorious …

Mr Speaker: Order!

There are no other titles in this House apart from that of honourable.

 Mr Chisala: Mr Speaker, I thank you for your correction. 
  
Mr Speaker, I want to congratulate Hon. Geofrey Bwalya Mwamba for having emerged victorious in the just-ended Kasama Central By-election.

 Hon. Opposition Members: Hear, hear!

Mr Chisala: Mr Speaker, I want to remind my brother the fact that during the course of the campaign, you exhibited the spirit of togetherness and hard work. I, therefore, want to request you to continue with the same spirit.

 Hon. Opposition Members: Hear, hear!

Mr Chisala: It will only be through doing the same that the people of Kasama Central Parliamentary Constituency shall keep you in that seat for ever and ever and nobody will unseat you.

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

Mr Chisala: Mr Speaker, I will be failing in my duties if I do not pay tribute to my colleagues, the MMD, and the candidate that they featured because if they did not bring Mr Mugala in the poll race, it was going to be very dull.

Mrs Phiri: Hear, hear!

Mr Chisala: Mr Speaker, I further want to congratulate my colleagues from the United National Independence Party (UNIP) and All Peoples Congress Party (APC) and their leaders, including Independents candidates, because that is the way things are supposed to be conducted in a democratic nation.

 Hon. Opposition Members: Hear, hear!

Mr Chisala: Mr Speaker, allow me, at this time, to talk a bit about the tax regime in this country. Tax in this country is extremely high to the extent that it is even believed that in the entire Central and Southern African Region, Zambia has the highest tax rate.

 Hon. Government Members: Aah!

Mr Chisala: Mr Speaker, if it was the PF / UPND Pact in power, we would reduce tax so as to reduce the burden which has been placed on the Zambian people.

 Hon. Opposition Members: Hear, hear!

Mrs Phiri: It is coming!

Mr Chisala: Mr Speaker, our people in the private sector and workers in Government institutions are suffering a lot because the threshold which has been pegged at K800,000. is not helping them at all. I, therefore, suggest in strong terms that it would be prudent for the hon. Minister of Finance and National Planning to raise the threshold to at least K1 million.

Mr Speaker, it is very unfortunate that in 2006, the threshold was at K600,000. Last year, it was raised to K700,000. We have been told that in the 2010 Budget, the threshold will go up to K800,000. When you take this into consideration and due to the inflation which has been affecting the Zambian community, you will definitely see that the K100,000.00, which has been added is not enough because it is not matching with the inflation rate. Therefore, in this connection, I want to emphasise that the threshold should go up to K1 million so that we cushion the Zambian community.

Mr Speaker, let me now talk about the education sector. While I appreciate the attention which the education sector has received with an allocation of K3.3 trillion, which translate into 19.9 per cent, at face value, I would say that this is not enough because this country will have the mammoth task of upgrading our schools, particularly from lower basic to upper basic schools. A number of secondary schools need to be built and teachers’ salaries need to be increased. Teachers’ allowances which include rural hardship and responsibility allowances, just to mention just a few, need be paid. Therefore, the amount of money which has been allocated to the Ministry of Education needs to be increased so that even salaries for our dear teachers can go up.

Sir, when I was contributing to the Presidential Speech, I requested the Government that it would be prudent for them to see to it that they pay our teachers heftily. Only if we do that will our teachers stop going on strike. In the absence of doing that, our teachers will continue going on strike year in and year out.

 Mr Speaker, what I am offering here is free advice. If it were the pact in Government we would have increased the salaries of our teachers. I want to reiterate that when you come to negotiations with the labour movement, this Government should ensure that you offer our teachers between 25 and 30 per cent increase. Our teachers have the mammoth task of looking at our syllabus, making schemes of work, weekly forecasts, lesson plans and, above all, evaluating the work that they discharge.

Mr Speaker, let me talk a bit about the windfall tax which was suspended sometime back.

 Hon. PF Members: It was withdrawn!

Mr Chisala: Rather, withdrawn.

Mr Speaker, when the late President, Dr Mwanawasa, SC., brought the Bill to this august House, we all supported it overwhelmingly. We supported the windfall tax because we knew very well that it was through that tax that this country was going to collect enough revenue which was going to help us pay our teachers well. Unfortunately, it was discovered that within a very short period, after the demise of the late President, this tax was withdrawn.
Sir, if it was the PF in Government, we would re-introduce this tax because we feel that it is very important. We are crying out that we do not have a big resource base. This is the problem which has been created by ourselves because we have abundant natural resources. Therefore, the only way forward is to ensure that we re-introduce the windfall tax.

Mr Speaker, on the other hand, let me inform the Government in power that we, in the Opposition, are here to offer free advice to our colleagues while theirs is to ensure that they drive the programmes. We have been trying, time and again, to give this piece of advice to them, but they do not seem to care about it.

Hon. Colleagues, you should remember that at one time, we were also part of the Executive. We have found ourselves where we are because we differed at some point, and we did that on principle.

  Therefore, when we come to this House to advise you, it is important that you take our advice because Zambians out there are listening and following our debates. Hence, it is prudent that the tax base is broadened by this Government.

Mr Speaker, the introduction of variable tax is a good idea and I appreciate it, but I want to advise the Government that this kind of tax regime can only work well if the Government considers collecting part of the money from companies that are supposed to pay before the end of the year. If the Government is not going to do that, we shall always be running in conflict with company owners.

Sir, let me now talk about the health sector. In this years Budget, we had 1.2 per cent allocated to the health sector. In the 2010 Budget, it has been reduced to 0.6 per cent. However, when you look at this allocation to the health sector, you definitely draw a conclusion that this money is not enough.

Mr Chota: Yes!

Mr Chisala: With this kind of allocation, one would wonder whether we can build district hospitals in places such as Chilubi and Mungwi, which have not had a district hospital for the last forty-five years. Mr Speaker, I wish to appeal to the hon. Minister of Finance and National Planning to do something about this.

Mr Chota: Yes!

Mr Chisala: Sir, it is my humble request. I am requesting the Government to do something about it so that the hon. Minister of Health may consider constructing a district hospital in Chilubi. I know it is your responsibility, as a Government, to ensure that you provide such facilities.

Mr Chota: Tell him!

Mr Chisala: Mr Speaker, in Chilubi, we have been losing huge sums of money in the health sector because we have to transport patients from Chilubi to Luwingu. You are talking of a distance of about 145 km. Other patients are referred to Lubwe Mission Hospital in Samfya District, which is 76 km on water. When we take our patients there, they are not treated free of charge. We pay over K300 million monthly.

Hon. Government Members: Aah!

Mr Chisala: That is a huge sum of money which can be used for other important projects. Sir, the hon. Minister should take this as a serious request because if he is not going to do anything about this situation, I know that the people out there shall not rest over until something is done about it.

Mr Speaker, if it had been the PF and UPND in power, they would have first considered constructing district hospitals in all districts where such institutions do not exist. If possible, suspend the construction of health posts because, in my view, a district hospital is more important than a health post.

Hon. Opposition Members: Hear, hear!

Mr Chisala: Sir, allow me to talk about the delimitation of this country into more constituencies. We are all aware that there will be elections in 2011. We were informed that Government is considering dividing the constituencies countrywide. However, I wonder when this programme will take place and why the Government is delaying its implementation. It would be prudent for the Government to pump in some money in this programme so that by January, 2010, this programme takes place.

If the Government is not going to give the Electoral Commission of Zambia (ECZ) enough time to go round the country and divide the country into more constituencies …

Mr Chongo: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Chongo: Mr Speaker, I rise on a very serious point of order and seek your serious ruling. Is the hon. Member debating in order to bemoan the slow pace at which the Government is implementing the delimitation exercise when he knows so well that this is an issue that is being debated at the National Constitutional Conference (NCC) where he attended and stopped? Is he in order?

Laughter

Hon. Government Members: Hear, hear!

Mr Speaker: The hon. Member of Parliament for Mwense is reminding the hon. Member of Parliament for Chilubi that there is a very important national forum where he could have raised those issues regarding the delimitation of constituencies and related matters. That forum is known as the NCC, which is operating under an Act of Parliament passed by this House and which designates all hon. Members of Parliament as members of that forum. That is a challenge I throw to the hon. Member for Chilubi to deal with.

May he continue, please.

Laughter

Mr Chisala: Mr Speaker, let me talk about another important issue, …

Hon. Members: Awee!

Mr Chisala: … which is transport for the Zambia Police Service, Zambia National Service, Zambia Air Force and Anti-Corruption Commission.

Sir, the last time I debated on the Presidential Speech, I emphasised on the Floor of this august House that the departments I have mentioned above were lacking transport. For this reason, the Government should, in the 2010 Budget, allocate more money to the Zambia Police Services and the rest of the Government departments that I mentioned earlier because it is through providing departments with enough transport that their efficiency will be seen. In the absence of transport, it will be very difficult for the people in the mentioned departments to continue performing effectively.

Mr Speaker, I want to also reiterate that the issue of buying an aircraft for the Zambia Police Service and Zambia Intelligence Service should seriously be looked into in next year’s Budget.

Sir, allow me, now, to talk about street vending. I have seen on the streets of Lusaka how the street vendors are being chased by the Zambia Police. If street vending was legalised, the situation in this country would definitely normalise. I can give a concrete example of one country called India.

Hon. Government Members: Aah!

Mr Chisala: In India, street vendors are given hawker licences hence are able to go about with their business in a normal manner. The people that this Government has continued chasing away from the streets using the State police are our own Zambian people. It is the responsibility of the State to look after them. They should not be chased away.
 
  If you continue chasing them, they will find it very difficult to feed their families and, therefore, I am requesting my colleagues on your right to see to it that they look into this issue seriously.

Mr Speaker, the issue of the CDF is an important one which should be looked at critically. The amount of money allocated for this, in the 2010 Budget, is not enough. The amount of money is supposed to be raised to K1 billion because this was the promise made by the former Minister of Finance and National Planning.

Lastly, I want to request the Government to see to it that the money from the donors, once given, be directed to projects. It should not go to the ministries. This is because we have observed that there is rampant financial mismanagement in the ministries.

Hon. Members: Hear, hear!

Mr Chisala: We should do things the way they were done in the past when moneys were directly channelled to the projects. When this is done, things will move smoothly.

I thank you, Mr Speaker.

Mr Mwiimbu (Monze Central): Mr Speaker, I thank you for according me this opportunity to debate the Budget Speech presented by the hon. Minister of Finance and National Planning. First and foremost, I would like to state that Zambians are not asking for a favour from the Government and they are not there to be praise singers of the Government for performing obligations that are conferred on them in the Constitution and laws of this country.

Hon. UPND Members: Hear, hear

Mr Mwiimbu: It, therefore, means that the statement by the hon. Minister for Lusaka Province asking the nation to be thankful is misplaced and misdirected. We are not going to be asking for favours from the Government.

Mr Shawa: On a point of order, Sir.

Mr Mwiimbu: Mr Speaker, the Government has an obligation to provide services to the residents and citizens of this country.

Hon. Opposition Members: Hear, hear!

Mr Mwiimbu: That is its obligation and it is not supposed to be ask for favours from anybody.

Mr Speaker, I would like to address myself to the scandalous and obnoxious yearly shortage of fuel in this country.

Mr Shawa: Ninkani yakudala iyo!

Mr Mwiimbu: Mr Speaker, the shortage of fuel has become a yearly event and the Government is aware that this manufactured fuel shortage always occurs around September and October of every year. The question that needs an answer, on behalf of the people of Zambia is, who the beneficiaries of the scandalous shortage of fuel are?

Hon. Member: It is projected.

Mr Mwiimbu: Who is actually engineering the shortage of fuel? We are all aware that the Government has given itself the responsibility to be the major importer of fuel in this country. If it is failing the people of this country by importing the requisite fuel, it is then failing the people of this country. What we have noted is that this is a deliberate failure to enable some individuals and organisations benefit from this shortage. We have seen that there is no transparency whatsoever in procurement whenever there is a fuel shortage. Underhand and dubious procurement procedures are used in importing fuel at the expense of the Zambian people. We are all aware, as responsible leaders, that the fuel shortage that occurred in this country led to the loss of business. A lot of organisations lost money and business as a result of the calculated failure by the Government.

Mr Speaker, we are all aware that the people have been complaining about the issue of procurement of fuel and the Government has deliberately ignored the pleas of the people. Fortunately, there are two important things that have happened in the last three months of the fuel shortage. The first is that the fuel shortage has inflicted pain on the Zambian people and they will never forget what has happened. Secondly, the good thing that has happened is that the people of Zambia have lost confidence in the Government and they have resolved to making sure that a government which is prudent in the management of resources be put in place. The UPND and the PF and other co-operating partners shall ensure that such malady does not recur in this country when we come into power.

Hon. UPND Members: Hear, hear!

Interruptions

Mr Mwiimbu: Mr Speaker, I have heard the Government praising itself about the agriculture and marketing policies of the MMD working. Alas, we are all aware that any hon. Member who represents people is aware that the marketing strategy has been disastrous. This year, there was a directive that the FRA was going to purchase 4,000 by 50 kg per depot leaving out the majority of the small-scale farmers without a market. Would you say that this is a good policy?

Mr Speaker, in my view, the policy is worse than atrocious, to say the least. We have been told by the MMD Government that, this year, it has increased the beneficiaries for the FSP. In its mind, it believes that by reducing the quantities of fertiliser and seed from eight to four bags is an achievement. However, this will reduce the land to be supported from one hectare to half. That is why the majority of the stakeholders are saying that what the Government is doing is not protecting and enhancing agriculture. If anything, what this Government is doing is impoverishing the people. Those who had the privilege of getting eight bags of fertiliser will, this year, get four bags. If the Government is not aware, most of the peasant farmers will only be able to produce twenty-five of 50kg bags of maize and that is if they will not eat green maize. If they sell the twenty-five bags of maize, they will only raise about K2 million per acre.

   This Government is aware that they have a policy of ensuring that anyone who has a child in a boarding school pays not less than K700,000 per term. Assuming somebody from Liuwa has five school-going children in a boarding school, …

Hon. UPND Member: Which he has.

Mr Mwiimbu: … they will be required to pay K3.5 million per term. Where would they get the money to pay for their children? It therefore, means that the children of that peasant farmer will not be able to go to school. It, therefore, means that the children of the children of these who have been failing to go to school will continue wallowing in poverty.

Hon. Opposition Members: Hear, hear!

Mr Mwiimbu: What pride do they have in this system of fertiliser support? A prudent Government would have found it proper and expedient to borrow money, increase the number of beneficiaries and bags of fertilisers that should be given to a farmer. That way, you would be able to promote agriculture …

Mr Muntanga: Hear, hear!

Mr Mwiimbu: … and ensure that the families will sustain themselves and send their children to school.

Mr Speaker, as a result of the deliberate policy of impoverishing our people, they are no longer able to afford medical facilities in this country. It is not unusual for our people in the rural areas to fail to meet their medical obligations. As a result of that failure, our people are dying in numbers. Is it not unusual that in Lusaka alone, everyday, more than 200 people are buried?

Mr Muntanga: Eh!

Mr Mwiimbu: The statistics are there.

Hon. Government Members: Aaah!

Mr Mwiimbu: You multiply 200 by 30, you are talking about 6,000.

Mr Muyanda: Too bad.

Mr Mwiimbu: And that Government is proud that they are working for the benefit of the citizens of this country.

Mr Muntanga: Oh! That is why there are hearses.

Mr Mwiimbu: Yes, that is why they decided to buy hearses so that the dead bodies are transported to the cemeteries instead of buying ambulances.

Laughter

Mr Muyanda: Very bad.

Mr Mwiimbu: Mr Speaker, it is high time our colleagues realised that their policies are not working. We are here to give you advice free of charge in the remaining eighteen months. If you are independent of wisdom, it is up to you, I am just advising you. It is free.

Laughter

Mr Muntanga: Hon. Shikapwasha.

Mr Mwiimbu: You either take it or leave it. It is up to you.

Laughter

Mr Mwiimbu: Mr Speaker, I want to talk about the road infrastructure. The returning Members of Parliament from the Southern Province and I have been talking about four roads yearly, from the year 2001. These are the Bottom Road, Zimba/Livingstone Road, Monze/Nico Road.

Hon. UPND Member: And the Nico/Choma Road.

Mr Mwiimbu: This is the eighth year and I want to stand here very proudly and state that we have been fighting for the rehabilitation of that road, especially the Choma/Namwala Road from 2001. Those of us who have been in this Parliament …

Interruptions

Mr Muyanda: Yes, yes.

Mr Muyanda: … have ensured that every year moneys are provided for that road. The record is there. It therefore, entails that it has been the collective responsibility of Members of Parliament from the Southern Province …

Interruptions

Mr Mwiimbu: … and the other Members of Parliament who are nationalistic in this House who have been ensuring that money is provided and the road is worked on. We have been prodding. Even some of you who were outside would hear us talking about this road. I would like to appeal to this …

Hon. Government Members: It is Hon. Chizhyuka.

Mr Mwiimbu: … Government that the Bottom Road should be worked on and adequate funding be thereto provided. You should realise that the people of the valley have suffered more than any other people in this country.

Mr Muyanda: Hear, hear!

Mr Mwiimbu: They felt the brunt of the liberation struggle. There was no development that has been taken to the valley because of the war that was taking place there. The people of the valley suffered the occasion to pave way for the Kariba Dam and they have continued to suffer because those are the same people who are found in Sichifulo.

Mr Muyanda: Yes, ba pa Zambezi.

Mr Mwiimbu: We are appealing to this Government to reconsider the issue of evictions of the people in Sichifulo.

Finally, Mr Speaker, you have advised on several occasions that Members of Parliament should not use this Floor to abuse people who are not in this House and are not able to defend themselves. I tend to think it is high time that those colleagues of ours, who have the propensity to abuse their rights and privileges of this House to abuse and insult others because they tend to think they are protected by the regulations and law, to stop it. The people who are out there and are not Members of Parliament have also got rights like any other citizens.

Hon. UPND Members: Yes.

Mr Mwiimbu: It is not proper for any Member of Parliament to stand up here and abuse the people whom she or he is supposed to protect. It is not correct. We are supposed to be here to protect the interest of those who have had no privilege of being in this House. We should not be seen to be abusing our people out there.

Hon. UPND Members: Hear, hear!

Mr Mwiimbu: Mr Speaker, if you belong to an organisation, there are rules and regulations. If you do not want to belong to that organisation, leave that organisation, but do not use Parliament to scandalise the organisation that has sent you to this House.

Hon. UPND Members: Hear, hear!

Mr Mwiimbu: It is not correct. If you want to do that do it outside and not in the House.

With those few remarks, Mr Speaker, I thank you.

Hon. UPND Members: Hear, hear!

Mr Speaker: I shall give a chance to one contributor from my right, then, we have to go to the Chairperson of the Committee on Expanded Estimates.

The Minister of Information, Broadcasting Services (Lieutenant-General Shikapwasha): Mr Speaker, I thank you for giving me an opportunity to debate on the Motion that is on the Floor of this august House. Mr Speaker, allow me to congratulate the hon. Minister of Finance and National Planning, Hon. Dr Situmbeko Musokotwane on the very good Budget that he has presented in this House.

Hon. Government Member: Hear, hear!

Lieutenant-General Shikapwasha: Mr Speaker, I commend the hon. Minister for making history in that Hon. Dr Musokotwane has presented two budgets in one year. The 2009 early this year and now the 2010 Budget ready for next year.

Mr Speaker, I commend the hon. Minister for making history in that Hon. Dr Musokotwane has presented two Budgets in one year; the 2009 Budget early this year and now the 2010 Budget is ready for next year. I also join Hon. Dr Situmbeko Musokotwane and many others who have spoken and paid tribute to the late John Mwanakatwe, May His Soul Rest in Eternal Peace, who inspired many of us and has, indeed, left an indelible mark on Zambian financial annals.

Mr Speaker, it would be totally wrong for me not to commend His Excellency, Mr Rupiah Bwezani Banda, for the great fatherly leadership he has continued to provide to this great nation, Zambia. He has calmly and with great integrity given wonderful leadership under great challenges and severe provocation. I urge all Zambians to give our President all the support he needs to steer this country to greater heights.

Sir, let me also congratulate Hon. G. B. Mwamba on winning the Kasama Central By-election. I have known Hon. Mwamba for a long time, that is, since we first met in Dar-es-Salaam. I was a diplomat and he came there to collect his first business asset, a minibus from Japan, in 1985. I have seen his business grow and he has been a Movement for Multi-Party Democracy (MMD) stalwart …

Hon. MMD Members: Hear, hear!

Lieutenant-General Shikapwasha: … and therefore, we welcome him to this House with no holds barred.

Interruptions

Lieutenant-General Shikapwasha: Mr Speaker, I have been listening to the debates on this Motion with great interest and many have debated, including the hon. Member for Monze, who has just sat down and many other hon. Members on your left. Some have debated great negative points that have disappointed me. One particular one that touched me was how the hon. Member of Parliament for Kanyama, Hon. Colonel Chanda paid glowing remarks to the colonialists who looked after him well as he was having three meals a day provided for by the colonialists.

Laughter

Lieutenant-General Shikapwasha: Mr Speaker, I want to put the record straight. I lived under colonial rule from the time I was born until after independence day on 24th October, 1964. At five years, my aunt was working for a white policeman, but I was not allowed to mix with his children. If I mixed with his children, my auntie would lose her job because they were children of a colonialist. Apart from that, in Kabwe, there were streets where blacks could not walk on because only white colonialists were allowed to use these streets. As for shopping, blacks needed a pass to buy items in the centre of the city. When we went to the shops, we were only allowed to buy through a window and not to enter inside the shops.

Sir, I remember very well when our forefathers, Hon. Kapwepwe and Dr Kaunda, came to try and break these pass laws that were there and decided to go and buy a sawing machine with legs. When they went to a shop window, they paid and the young lady who was there asked them, “what machine do you want boys?” They said, “We want the machine with legs.” After she went and consulted she said to them, “Come in front and collect your machine.” They said, “No, we want it to pass through this window.” The argument went on for the next fourteen days until the colonialists removed the laws that they had put in place. These are the colonialists that we know and not the ones that the hon. Members said were giving him three meals a day. I, therefore, am very surprised that Hon. Colonel Chanda was having three meals a day during the colonial rule. I would like to say that the only people who were having three meals a day from the colonialists are those who were their informers.

Hon. Members: Hear, hear!

Laughter

Lieutenant-General Shikapwasha: These are the ones who went to inform the colonial administration on the liberation or freedom movement.

Interruptions

Lieutenant-General Shikapwasha:  Mr Speaker, I am not pointing fingers at anyone. Please, read my lips.

Laughter

Lieutenant-General Shikapwasha: Mr Speaker, the other debater who also attracted my attention was Hon. C. Mulenga, the hon. Member of Parliament for Chinsali. Only a few months ago, at the start of this year, Hon. C. Mulenga is on record in this august House as having paid glowing tribute to Hon. Prof. Lungwangwa, the hon. Minister of Education, for having built wonderful schools in his constituency. A few months down the line, he is calling us names. Why all this negative debate? It is because we are a working Government.

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

Lieutenant-General Shikapwasha: Mr Speaker, we are a Government that has provided schools, hospitals and other health centres and roads in every constituency of the hon. Members on your left. Not one of them can say we have not built anything in their area. We have done so.

Mr Speaker, all that this working Government is doing is also contained in this wonderful Budget that Hon. Dr Musokotwane has presented. This is a working Budget and it gives positive-minded Zambians a number of positive permutations.

Mr Speaker, it is a Budget which outlines the incentives and permutations that we so much need to create wealth for our people. It is a Budget that will move the Zambian economy for greater benefits for our people. New roads are going to be constructed. Just a few minutes ago, Hon. Mwiimbu was asking and pleading for the Bottom Road to be rehabilitated and yet we are tarring the roads in the Southern Province. However, he says that he does not appreciate what we are doing. The people in the Southern Province appreciate this and are thankful to this Government that listens and understands their needs.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: He may not be able to appreciate what we are doing, but the people do so …

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: … and we are aware that the people are thankful to this wonderful Government.

Mr Speaker, many roads are going to be rehabilitated and completed while many new others are going to be started of all over the country. This is a working Government with a working Budget. The 2010 Budget will bring about a great number of school places for our children at all levels of our education system. It is a Budget that provides for more houses for teachers in rural and urban areas. It is a Budget that puts money into the teachers and other civil servants’ pockets. This is a great and meticulously worked out piece of financial art.

This Budget provides for a growth in the economy whilst many economies in Africa and worldwide are suffering under the weight of their national demands. This Budget cuts across all walks of life for women, men and youths. It brings into focus the Ministry of Livestock and Fisheries Development. It also brings into focus our womenfolk with greater achievements under the Department for Gender. Men, women and youths will exhibit their commercial skills in the Multi-Facility Economic Zones (MFEZ) that we are establishing. This is an innovation from this Government.

Sir, even before these sound innovations of this working, listening and transparent Government take root, jobs will be created for our people all over the country in the construction industry. If this is the kind of Budget that quenches the developmental thirst of this country, what more with the dams that are going to be built in Southern Province where Hon. Mwiimbu does not want to acknowledge our work?

Hon. Opposition Members: Where?

Lieutenant-General Shikapwasha: Mr Speaker, what more with the billions of Kwacha that are going to be spent on boreholes so that our people can have water. This is a Budget that has given greater flexibility to the Constituency Development Fund (CDF). All the hon. Members of Parliament on your left will access the CDF and are going to be the actuators of development in their constituencies.

Mr Speaker, I need to warn hon. Members, especially those on your left, that when they go out there, they should not abuse CDF. First of all, they should not go and tell the Zambians that they are the ones who bring CDF. They should tell the Zambians that the MMD Government has sent this development fund.

Hon. MMD Members: Hear, hear!

Hon. Government Members: Hear, hear!

Lieutenant-Colonel Shikapwasha: Be truthful, we have heard that when we gave you relief food for people, you went and said that you are the one who brought the food which is not true. Stop misinforming the people.

Mr Speaker, I want to advise the people on your left to be truthful and factual to the electorate, tell them that the MMD Government has brought not only CDF, but all the development that they are seeing in your constituency.

Secondly, tell the electorate that you can speak to us, we have received you well and that because we listen to you, we have gone ahead and agreed to develop your constituencies.

Thirdly, tell the people that all the development they are seeing in your constituencies is because you are co-operating and working with a listening and winning Government, the MMD Government.

Hon. Government Members: Hear, hear!

Lieutenant-Colonel Shikapwasha: Mr Speaker, through you, please, tell the people that after forty-five years of independence, you have surely seen the hand of God in Zambia. There is great peace, love from the President, political tolerance, spirit of reconciliation and good neighbourliness; and indeed, tell our people that we are working very well as Zambians. Tell them also that there is no room for insults, tribalism or regionalism and violence in this nation. Neither is there any room to speak evil about others. There is also no room for homosexuals and such perverts in society.

Hon. Government Members: Hear, hear!

Lieutenant-Colonel Shikapwasha: Mr Speaker, I want to end with a wonderful reflection of Hon. Sakwiba Sikota who said that many do not know what they were doing forty-five years ago at independence. He spoke so well unlike other cousins of mine, the indunas or past indunas who do not speak that well.

Mr Speaker, I remember very well how I could not stop my tears rolling down my young chicks, as emotions filled my heart seeing the union jack being lowered and the Zambia National Flag being hoisted and the reassuring melodies of the National Anthem at the Independence Stadium.

Mr Speaker, two years later, I was in the Air Force as one of the very few young Zambian pilots to defend the independence of Zambia. I had options to go and study Accounts at Wits University, study Aeronautical Engineering Aviation Technology at a College in Boston, United States of America, but I chose to defend the independence and people of Zambia; and indeed, we did defend it very well to an extent that forty-five years down the line, Zambia is continuously not only independent, but there are also opportunities for us to flex our independent minds and be able to bring understanding to our country.

Therefore, we defended both the Western, North-Western and Eastern provinces from the Portuguese, the Copperbelt Province from the civil war that was happening in the Democratic Republic of Congo and Lusaka from the Rhodesians who wanted to destroy this nation.

Hon. Government Members: Hear, hear!

Lieutenant-Colonel Shikapwasha: This is a pedigree of some of those people who are here in this wonderful House. We did not look for fat salaries, we just worked for our country and indeed, many that followed us like Hon. Major Chizhyuka and Hon. Brian Chituwo and many others. We worked to usher in a democratic Zambia, not that of insults, but a free and prosperous Zambia. I do not know what those on your left
were doing at the time. Therefore, this Government extends its unflinching hand of brotherhood and sisterhood to all the hon. Members on your left and all those we all represent.

Let us pass this wonderful budget. It is a piece of art as it brings a greater future for our nation.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr Hamududu (Bweengwa): Mr Speaker, I thank you for the opportunity to present the findings and recommendations of your Expanded Committee on Estimates on the 2010 Estimates of Revenue and Expenditure.

From the outset, let me state that your Committee are cognisant of the fact that the world economy has still not fully recovered from the effects of the global recession arising from the global economic crisis. However, they were encouraged to note that in the words of the hon. Minister of Finance and National Planning, the green shoots of recovery are beginning to manifest in various forms. Notably for Zambia, copper prices on the international market are on the rebound.

Mr Speaker, allow me now to brief this august House with regard to some of the key issues that your Committee encountered in their work.

Your Committee noted that the obvious impact of the global economic crisis on the Zambian economy is that economic growth is expected to slow down in 2009 while the annual inflation rate is expected to be above the target at the close of the year. Further, as a result of the global economic downturn, the Zambian domestic economy has been characterised by a sharp decline in external trade. With this background, your Committee appreciate that the 2010 Growth Domestic Product (GDP) rate projection of 5 per cent, though on the lower side, is realistic. However, they urge the Government to take a bold and decisive action to ensure higher economic growth rates in future for the country to have the ability to make a meaningful impact on the poverty levels in the country. In the present circumstances, it is clear to your Committee that the projected growth will not necessarily reduce poverty. It is, however, disheartening for your Committee to note that despite the moderate positive economic growth recorded over the past few years, poverty and unemployment still remain serious challenges.

Mr Speaker, your Committee were also concerned that the 2010 Budget was not different from the previous ones regarding the distribution of the tax burden. Again, individual and household incomes would bear the burden of taxation by paying about 28 per cent of the total tax revenue while corporate tax, including that from the mining companies, would only account for 12 per cent of the total tax revenue.

Your Committee heard from various stakeholders that despite the current economic hardships and dampened domestic demand, the Government had not seen it fit to increase the tax exempt threshold to, at least, K1 million from the K700,000 of 2009. It was also noted that there was an urgent need to revise the tax bands in an effort to stimulate and harness domestic demand. Further, it was not clear on what basis the Government had decided to increase the threshold by only K100,000.

Mr Speaker, your Committee noted that large increases in the country’s public revenues were potentially available from non tax revenues. However, non tax revenue had not performed well over a long period of time. It was forecasted that this source would, in 2010, contribute K721.8 billion as compared to the 2009 target of K453.3 billion. In the light of this, the challenges in administering user fees and charges, largely associated with revenue leakages through corruption, must be urgently addressed in order to realise the full potential of our non-tax revenue base. In the same vein, some stakeholders expressed concern at the rate of damage to our road infrastructure, especially by foreign transporters. They wondered whether it was not time for the issue of toll gates to be seriously considered.

Sir, considering the economic classification of the proposed expenditure in the 2010 Budget, your Committee were unhappy to note that only 18 per cent of the total expenditure would go towards capital expenditure whilst 78 per cent of the total expenditure would be spent on recurrent expenditure. In the same light, your Committee noted that the capital expenditure constituted only 4.11 per cent of the projected GDP. This meant that minimal resources would be reinvested for sustained economic growth to be attained. The investment income ratio of 4.11 per cent is grossly inadequate. Your Committee, therefore, urge the Government to significantly increase the allocations to capital expenditure in order to ensure sustainable economic growth.

Sir, it is your Committee’s view that since the focus has remained on diversification and competitiveness, the Government should make an effort to address the various regulatory and micro-economic barriers to competitiveness of various sectors through a comprehensive sectoral analysis. The Government should pay particular attention to matters such as availability of affordable credit, market development, energy and infrastructure constraints, among many others. For example, the road sector is highly underfunded and, therefore, the road infrastructure cannot contribute to increased economic activities in the outlying areas of our country.

Mr Speaker, while agreeing that it is possible for borrowed resources to be used to stimulate economic growth if such resources are channelled towards productive sectors and activities, your Committee note that it is not immediately clear, from the 2010 Budget proposals, as to where the borrowed resources would be directed and the risk of these resources being used for consumption expenditures is high. In such a case, the borrowing merely serves to push interest rates upwards and crowd out the private sector that already has difficulties in accessing credit and may be detrimental to the economy.

It is also worrisome to your Committee that the Government has deviated from its target as regards the levels of borrowing as pronounced under the Fifth National Development Plan (FNDP) and there does not seem to be any serious plan to set the country back on course to achieve the set goal in the FNDP.

Mr Speaker, another important issue that your Committee dealt with is that of the proposed increase in duty on diesel. They hold the view that this proposal has come at an inopportune time when the economy is grappling with the impact of the global economic recession. Diesel, being an important input in most industrial processes as well as the transport sector, this move may contribute to an escalation in costs of production and consequently in prices of essential goods and services as well as inflation levels which would negatively impact on the capacity of the economy to attain most of its macro-economic targets for 2010. Your Committee, therefore, seriously call for the deferment of this increase until the economy stabilises.

Mr Speaker, your Committee agree that the agriculture sector is the key to the development of our country, especially on account of the fact that it has the capacity to lift a large number of people out of poverty. The pronouncements by the Government in terms of prioritising the sector are, therefore, most welcome. However, they are concerned that the budgetary allocation for development activities in the sector does not appear to reflect this priority. In fact, no significant resources have been set aside for crop diversification, irrigation development, livestock production and disease control and agriculture infrastructure development programmes. This is an indication of the fact that the sector may not record the levels of growth that could be capable of contributing significantly to overall economic growth in Zambia. They call for an urgent review of this situation so as to ensure that the country develops a vibrant agriculture sector which will be a major contributor to economic growth.

Sir, in addition to this, your Committee note that the Farmer Input Support Programme (FISP), which has been allocated the bulk of the resources in the 2010 agriculture budget, is more of a social safety net than an agricultural business development incentive, particularly in its current form, with reduced inputs per farmer. In this regard, most stakeholders who appeared before your Committee recommended that FISP be transferred to the Ministry of Community Development and Social Services …

Hon. Opposition Members: Hear, hear!

Mr Hamududu: … and reflected as a social safety net in the form of a food security pack to avoid distorting the budget for agriculture.

Hon. Government Members: Hear, hear!

Mr Hamududu: The classification of FISP as a food security pack will give room to the Ministry of Agriculture and Co-operatives to come up with better innovative incentives to develop the agriculture sector such as access to affordable credit by farmers. This will ensure viability of agricultural business. They further recommend that FISP undergoes a comprehensive evaluation in order to improve its implementation and impact.

Mr Speaker, with regard to mining, most stakeholders who appeared before your Committee called for the reintroduction of the windfall tax introduced in 2008 and later abolished in 2009. They felt that with the current tax regime, Zambians will not benefit from the high copper prices induced by high demand on the world commodity market.

Your Committee recommend that the old tax regime, which provided for the application of windfall tax beyond a certain price threshold, should be restored since, at its trigger point, the normal profit margin would have been provided for in the case of both low and high cost mining operations. Your Committee wish to re-emphasise that the payment of windfall tax would, therefore, not, in any way, affect the profitability of mining operations, but would merely serve to enable the Zambian Government share in the super-normal profits that would be reaped by the mining sector as a result of the high international copper prices.

Hon. Opposition Members: Hear, hear!

Mr Hamududu: Mr Speaker, in terms of funding to the health sector, your Committee wish to reiterate their observations in numerous previous reports that leaving the financing of critical sectors such as health to the co-operating partners, is not in the interest of Zambia as a nation and leaves many Zambians vulnerable. In this regard, while your Committee appreciate the increase in the domestically-funded portion of the health sector budget, they note that the reduction in the overall health budget for 2010 is detrimental to the country’s chances of achieving the Fifth National Development Plan’s vision of providing Zambians with equity of access to cost effective, quality health care as close to the family as possible, not to mention the fact that it will affect our capacity to achieve the 2015 Millennium Development Goal target on health. They, therefore, propose that the Government take immediate steps to ring fence this key social expenditure and maintain it at the 2009 levels as a minimum.

Mr Speaker, another sector that is critical to Zambia’s development efforts is the water and sanitation sector. Your Committee call upon the Government to take responsibility for this sector which is critical to the lives and livelihoods of many poor Zambians and which has hitherto been almost completely financed by the co-operating partners.

On local governance, Sir, I wish to touch on the issue of the abolition of crop levy.

Hon. Opposition member: Hear, hear!

Mr Hamududu: Most stakeholders who appeared before your Committee submitted that the move to abolish the crop levy will not benefit the producers, but the grain traders since this levy was payable at the point of export from the district by the exporter. It was not applicable to a farmer who sold his produce within the district. Further, the assertions by the Government that the move to abolish this levy will benefit the producers because they will receive higher prices from the buyers of their produce may be incorrect since there is no assurance or guarantee that this will be the case.

Your Committee, therefore, call on the Government to rescind its decision as it will be detrimental to the financing of local authorities, ...

Hon. Opposition Members: Hear, hear!

Mr Hamududu: … especially that for some councils, crop levy constitutes the main source of revenue. Further, the envisioned grants that the Government proposes to give to the councils in lieu of crop levy might turn out to be unreliable as there has been a historical trend of poor release of grants by the Central Government to councils.

Mr Mwiimbu: Hear, hear!

Mr Hamududu:  Mr Speaker, Your Committee note that in 2009, the funds released to provinces as support for rural road rehabilitation under the Rural Roads Unit did not reach some districts.

Mr Mwiimbu: Hear!

Mr Hamududu:  The committee therefore, strongly urge the Government to release these funds directly to the district councils in future with clear guidelines about their use so as to avert diversions of funds.

On the Constituency Development Fund (CDF), your Committee urge the Government to consider a substantial increase of the fund to at least K1 billion …

Hon. Members: Hear, hear!

Mr Hamududu: … to enable local communities directly engage in the reconstruction and development of the country and bring about a sense of responsibility among communities.

On the energy sector, your Committee was concerned that although numerous problems continue to beset the electricity sub-sector, with a serious power shortage looming, the Government is not moving at the right speed as regards ensuring the country develops new generation capacity. Although we appreciate the efforts that that have been made through the commencement of the Kariba North Bank Extension Project, more concerted efforts need to be made to ensure that finance is sourced for new projects, especially in places where feasibility studies have already been completed such as Itezhi-tezhi and the Kafue Gorge Lower. This will go a long way in ensuring that the anticipated development in other sectors of the economy such as mining, tourism and manufacturing have access to the requisite provision of energy.

I thank you, Mr Speaker.

Hon Members: Hear, hear!

The Minister of Finance and National Planning (Dr Musokotwane): Mr Speaker, I wish to thank you for the opportunity you have given me to wind up debate. I also wish to thank the hon. Members that have contributed to the debate on the Motion of the 2010 Budget.

Sir, a lot has been said during this Motion. However, I will not be putting to good use the House’s time if I try to respond to the issues that were raised point by point. Instead, I shall organise my response around three themes. These three …

Dr Musokotwane drank some water and coughed

Hon. Opposition Members: Hear, hear!

Dr Musokotwane: Mr Speaker, these themes are as follows:

 (i) the vision reflected in the Budget;

 (ii) mobilising tax revenue; and

 (iii) crop  levy.

Dr Musokotwane coughed and drank some water.

Laughter

Dr Musokotwane: Mr Speaker, let me start with the issues regarding the Budget and the development vision.

Sir, I recognise that the Budget tends to be quite extensive in its coverage of issues. As a result, it is quite possible that some hon. Members may fail to draw together the various strands making up the Budget’s vision. To cover for this inadequacy, they may find it easy to simply characterise the Budget as having no vision. Let me, therefore, assist …

Dr Musokotwane coughed and drank some water

Hon. Opposition Members: Assist yourself.

Dr Musokotwane: Let me assist them by reminding them aware of some key issues.

The issues are as follows:

 (i) poverty still remains a serious problem in Zambia.

(ii) the primary cause of poverty has been the lack of strong and consistent economic growth many years after independence

(iii) following the bold economic measures of reform, such as privatisation and economic liberalisation that started in the early 90’s, the Zambian economy has now slowly began to enjoy sustained growth in the excess of 5 per cent ever since 2002.

(iv) with growth taking place, the signs of progress have been visible everywhere.

(v) the global economic crisis that started in 2008 threatened the progress that Zambia was making, especially if it would result in wide spread closure of the mines and related industries.

(vi) the 2009 Budget was crafted largely to minimize the adverse effects of the global economic crisis and with a projected growth for the year at 4.3 per cent, this objective has by and large been met.

(vi) the 2010 Budget has adopted the theme of the 2009 Budget, which is to respond to the global economic crisis and encourage economic diversification. On the later, this is done by continuing certain projects which were started under the 2009 Budget, but have not been completed, Examples of these projects are the Kasaba Bay Project, the Nansanga Farm Block Project and development of disease free zones for livestock among others.

Mr Speaker, returning the 2009 Budget theme of economic diversification is not a sign of lack of innovation as alleged by these colleagues on your left. Instead, it is a sign of innovation. It demonstrates that this alert Government, knowing very well that some objectives cannot be completed in one year, will not blindly change the theme of the Budget so as to remain in the traditional comfort zone of change for the sake of change.

Mr Speaker, I listened very carefully to hon. Members who have claimed that the Budget is hollow and without vision. To the contrary, the Budget is underpinned by solid vision ...

Hon. Government Members: Hear, hear!

Dr Musokotwane: … whose key elements I have just outlined.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Further, the Budget has received favourable reaction from reputable local and international organisations.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Therefore, Mr Speaker, I wonder who is advising these colleagues on your left and what is their reputation?

Hon. Government Members: Hear, hear!

Dr Musokotwane: The Government’s development programmes are guided by Zambia’s 2030 vision that was prepared in an open and participatory process by the best brains that Zambia could assemble. It is this vision that influenced the thrust of the Fifth National Development Plan (FNDP) which was prepared in the same meticulous manner as the vision 2030. In turn, the annual budgets that the hon. Minister of Finance and National planning presents to this august House propose spending of money in pursuit of the FNDP goals.

Therefore, Mr Speaker …

Mr Speaker: Order!

Business was suspended from 1815 hours until 1830 hours.{mospagebreak}

[MR SPEAKER in the Chair]

Dr Musokotwane: Mr Speaker, just before break, I was talking about the vision and I wish to continue by saying that the Government has a vision which is very clear. The process for implementing this vision is also very clear. What is also clear and very sadly so, is that many hon. Members of Parliament on your left, who should, normally, be well informed people about the planning documents, the Vision 2030, seem to be unaware about the existence of these documents. No wonder few, if any of them at all, made any reference to these documents. I find this very sad because these are national documents that they should be aware of and clearly by saying that there is no vision, it means that they are not aware.

Sir, many hon. Members on your left compiled long lists of almost everything that they could think about and then stated that since the 2010 Budget did not have money for these items, it followed that the Budget was poor. The intention is to give a false impression to the Zambians that if they were in power, they would deliver on all such items. This approach is characteristic of people that have no clarity about their objectives.

Mr Speaker, the approach is, indeed, a manifestation of leaders without a vision. Failed leadership, as some colleagues said, except that the failure is very firmly on their side.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Any serious leader including a head of a family must honestly recognise that money is always limited and you cannot do everything at one goal.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Therefore, we must learn to prioritise and that is what this Government has been doing.

Sir, we have focused on education resulting in all hon. Members of Parliament gratefully and publicly acknowledging in this House that many schools are being worked on in their constituencies.

Mr Speaker, we have also focused on health resulting in all hon. Members of the Opposition without exception fearing to take up the challenge from the hon. Minister of Health on three separate occasions regarding the availability of drugs.

Sir, we have also focused on growing the economy which has seen our economy registering a respectable projected 4.3 per cent in 2009 when nine countries surrounding us and beyond have done much less.

These successes require the discipline of focus realising, for example, that you cannot establish farm blocks everywhere in the country at the same time because the result would be uncompleted projects in many places.  On the other hand, the completion of one project such as a farm block or a livestock disease free area shows the Government’s resolve to establish similar projects in other part of the country in the near future.

Mr Speaker, this Government will stay on course to ensure that it delivers Kasaba Bay as the destination of choice for international conferencing and tourism …

Hon. Government Members: Hear, hear!

Dr Musokotwane: …so as to create thousands of jobs. It will stay the course for delivering Nansanga Farm Block and set the standard in Africa for high quality agriculture combined with agro-processing for small, medium and large-scale farming. Indeed, it will stay the course for delivering quality social services like education and health.

Mr Speaker, what this Government will not follow is the course of the parties in deceiving the public that they will deliver millions of things when even a child can tell that there is no capacity for doing so.

Hon. Government Members: Hear, hear!

Dr Musokotwane: This completes my first theme as far as vision is concerned. I will now turn to my second theme, which is mining taxation.

Mr Speaker, Zambia’s mining industry started in 1908 when Kansanshi Copper Mine in North-Western Province started operating on a commercial scale. In the ensuing years, more copper mines were established and these included Roan Antelope Mine in 1911, Bwana Mkubwa in Ndola in 1913, Nampundwe in 1914, Rhokana in 1922, Konkola in 1923, Nchanga in 1924, Mufulira in 1928 and Chibuluma in 1939. Mining quickly became the major provider of employment and foreign exchange earnings as well as being the mainstay of the Zambian economy.

Mr Speaker, in 1968, the Government partially nationalised the two mining groups by acquiring 51 per cent majority shares in both Anglo-American Corporation (AAC) and the Rhodesia Selection Trust (RST). Consequently, the names of the two companies changed from AAC and RST to Nchanga Consolidated Copper Mines (NCCM) and Roan Copper Mines (RCM) respectively. Sir, in 1980, the Government merged the two groups into a single monopoly namely the Zambia Consolidated Copper Mines (ZCCM).

Mr Speaker, the Government’s belief in nationalising and re-organising the mining industry was that the country was going to derive more benefits from the exploitation of our mineral resources.  With the advantage of hindsight, it is a fact, today, that these acts failed to correctly balance national interest against the economic necessity.

Mr Speaker, during the period of ZCCM, we chose to ignore the fact that there was need to feed the cow that gave the milk. In simple terms, we did not re-invest in ZCCM and by the late 1990s, the company was completely ruined. Instead of paying tax to the Government, it was the Government that actually had to subsidise ZCCM using taxpayers’ money to the tune of US $1million per day.

Mr Speaker, my colleagues in the House who were directors and managers, or even advisers to ZCCM, know this fact very well. They entered a mining industry that was vibrant and contributed to the economy in many ways such as educating most of us but, shamefully, they left a skeleton of an industry that drew away from the Government what it previously gave. Therefore, Sir, these colleagues need to reflect soberly about their roles in this sad episode and take a more modest position regarding their knowledge on mining-related economic policy. They should not pretend that they know everything.

Mr Speaker, to cut the long story short, copper production, by 2000, had reduced to only 230,000 metric tonnes per annum or just about one third of the production reached in the mid-1970s. 

At this level and given the high operational costs mainly due to lack of capitalisation, most people thought that Zambia had reached the end of her mining life. Jobs were being threatened and lost and the decay of the mine townships started.

Mr Speaker, in view of these challenges, the Government in 2000, privatised the mining industry. In order to facilitate the substantial recapitalisation and investment that the sector required so much, the Government had to provide some incentives, particularly fiscal incentives. It also had to enter into agreements with the private owners of the mines to protect their investment.

Mr Speaker, this august House will also recall that when he Government provided tax incentives in 2000, which included the reduction of mineral royalty rate from 2 per cent to 0.6 per cent and company income tax from 35 per cent to 25 per cent, these were meant for the former ZCCM mines, which were very deep and wet and, therefore, very expensive to run.

Sir, the formulation of the 2008 mining tax regime was intended to ensure that the tax system remained stable and robust and that it worked for both high and low metal prices as well as high and low operating costs. This required making assumptions about the levels of metal prices and the cost of productions in the industry.

The highest tax rate as a proportion of taxable income in good times for the mining companies was estimated to reach 60 per cent while the lowest would be about 34 per cent. On average, therefore, the effective tax rate would come to about 47 per cent. This was the regime that was proposed by the team of experts and which Cabinet approved. Notwithstanding the above explanation, it became apparent during the implementation that the assumptions on which the experts had designed the 2008 mining tax regime did not hold. It also became clear that some mining companies, especially those operating old mines, which were deep and wet, would end up paying much higher taxes than was projected mainly because of the escalating cost of production which were historical and were not assumed in the design of the tax regime. For example, the cost of petroleum products increased by more than 100 per cent while labour costs increased by about 50 per cent.

As a result, the average effective tax rates for the mining sector went beyond the intended 47 per cent as announced by the hon. Minister of Finance and National Planning in the 2008 Budget. A major contributor in this outturn was the windfall tax that imposed very high incremental tax on gross revenue without allowing the mining companies to deduct its costs of production before arriving at a taxable income. What followed was a standoff with mining companies the whole of 2008 and that is why most of the projected windfall revenue for the year was not collected even by the time I assumed office at the end of the year.

Mr Speaker, let me now turn to the point of whether the current mining tax regime is buoyant enough to appropriately contribute to the Treasury, particularly in good times. Let me also clarify that the absence of windfall revenue tax does not mean that there are no taxes payable by the mining industry. On the contrary, other taxes still apply and these include company tax, mineral royalty tax and customs duty on certain imports as well as Value Added Tax (VAT) where appropriate.

Further, as I explained during the debate of the 2009 Budget, variable income tax is also payable and it has the same objectives as windfall revenue tax in that it imposes higher tax rates for abnormally huge profits arising from extraordinary high prices of copper. It, however, differs from windfall taxes in that the tax payer is allowed to deduct their cost of production before tax is imposed. Some hon. Members in this House have claimed that the variable income tax is much harder to collect compared to the windfall tax. However, Mr Speaker, as I just explained, the very tax that is claimed to be easier to collect, which is the windfall tax, was never collected in 2008.

Sir, after privatisation of the mining sector in 2000, not only did the Government save resources by stopping to subsidise the mining industry, but also started seeing them increasingly contribute to taxes. In 2001, for example, tax revenues from the industry were merger at 0.3 per cent of total taxes. By 2007, the contribution increased to 8.4 per cent. We have also seen improvements in Pay as You Earn (PAYE) contribution from mine workers, which is now an average of 11 per cent of the total taxes. Mining companies have also become major contributors to local authorities in the mining towns in terms of property tax. They are now basically the major sources of financing for local authorities in mining areas in form of property taxes.

Mr Speaker, these figures may seem small, but this is because most of the investments that the mining companies have made are still being carried forward as losses for tax purposes. Carry forward losses for tax purposes is a normal arrangement for all industries, not just in mining. It allows a company to recover its start up losses before coming into a tax paying position. I wish to inform this House that by 2007, the loss carry forward by the seven big mines was estimated at US$2.2 billion or equivalent to almost K11 trillion. This, of course, has had a major impact in terms of tax contribution by the mining sector. The effect of the current high prices is to reduce the estimated time that the carry forward losses will apply.

Sir, let me substantiate my points by demonstrating to this House the amount of tax revenues we anticipate from the mining industry after they have recouped their investments. I will do that by using tax payments that Kansanshi Mine has made so far.

Mr Speaker, Kansanshi Mine is one of the mines that has, so far, managed to recoup its investment and the company started paying taxes in 2006. In 2007, for instance, the company paid K97 billion in income taxes and K0.7 billion in mineral royalties. In 2008, they paid K355.5 billion in income taxes, K109.5 billion in windfall taxes and K71.5 billion in mineral royalties. In 2009, the company has, so far, paid K192.7 billion in income taxes and K58.6 billion in mineral royalties.

Sir, the 2009 figures for Kansanshi Mines do not include the additional revenues from the tax changes introduced in 2008 and re-aligned in 2009. This is because the company has contested the regime change and the matter is now under arbitration. If the contested revenues are included and copper prices stabilise at the current levels, Kansanshi Mine alone would be contributing in excess of K500 billion in form of company income tax and mineral royalties to the Treasury.
RRR
Mr Speaker, once Mopani, KCM, Lumwana, Luanshya, Chambishi and the rest of the mining companies extinguish their loss carried forward, each one of them will be contributing almost the same amount of tax revenues to the Treasury. In essence, once the big mining companies extinguish their losses and come into a tax paying position, we project that the mining industry will be the major contributor to the tax revenues with company income tax and mineral royalties alone contributing more than 30 per cent of the total tax revenues. Effectively, mining companies will be paying an effective tax rate of not less than 47 per cent, which was the principle objective of the 2008 mining tax reform.

Mr Speaker, this is the basis on which we want to insist that the current mining tax regime is buoyant enough to give us the desired revenues from the mining sector, but at the same time, securing enough returns on investment by the mining companies. Attempts to increase the effective tax will give us some additional revenues in the short term, but will ruin the future of the mining industry. It will distort the economics of the mining projects and may affect new investment. The consequences are as grave as they were when we ruined the industry under ZCCM. Now that the mining industry is on an upward trajectory, with output expected to reach one million tons in the next three years, it would be very inopportune to now take measures that could reverse this trend.

Mr Speaker, we surely need to feed the cow that gives us milk so that tomorrow we can have more milk. A number of hon. Members asked the question why Zambia, with so many natural resources, remains poor. We can also extend the question and ask why natural resource-poor countries like Japan, Hong Kong, Singapore, Mauritius and others are rich. The current debate on the mining taxation partly illustrates the point. We all learnt that production and therefore, wealth creation has several factors that include natural resources, labour, capital, technology and a few others. Each of these factors needs the other to create sustained economic expansion. While Zambia, indeed, has the natural resources, it lacks adequate provisions of other factors such as capital. Without the other factors, natural resources such as land or mineral ores will, by and large, remain raw and untapped.

This is why it is necessary that we create an enabling environment so that we can attract other factors of production to Zambia such as capital and technology. And this is precisely what this Government is doing and the various projects that Hon. Mutati outlined yesterday are an example of that. Trying to undo this, as Hon. Kambwili is fond of doing with his hostile attitude towards those who bring capital to the country, will mean that the creation of new jobs such as those at Muliashi in Luanshya will be threatened.

Hon. Members: Hear, hear!

Dr Musokotwane: Mr Speaker, the wealthy countries with little or no natural resources have attained their status because they quickly learnt how to attract other factors of production to themselves. They have attracted capital and technology from all over the world and they have imported the raw materials from natural resource rich countries such as ours to create industrial complexes. To achieve this, they have adopted policies that are attractive to capitalists. We too can do the same and, with our natural resources, we can make very fast progress. It is important, therefore, that we are mindful of the type of taxes we impose, lest we eat just for now and then starve shortly thereafter.

By the way, I dispute the assertion that one of the PF Members made when he claimed that with a PF Government in place, they would reintroduce the windfall taxes. We know this to be totally untrue because the PF President wrote a letter to the former Minister of Finance and National Planning strongly condemning the introduction of the windfall tax.

Hon. Members: Hear, hear!

Mr Speaker, once Mopani, KCM, Lumwana, Luanshya, Chambishi and the rest of the mining companies extinguish their loss carried forward, each one of them will be contributing almost the same amount of tax revenues to the Treasury. In essence, once the big mining companies extinguish their losses and come into a tax paying position, we project that the mining industry will be the major contributor to the tax revenues with company income tax and mineral royalties alone contributing more than 30 per cent of the total tax revenues. Effectively, mining companies will be paying an effective tax rate of not less than 47 per cent, which was the principle objective of the 2008 mining tax reform.

Mr Speaker, this is the basis on which we want to insist that the current mining tax regime is buoyant enough to give us the desired revenues from the mining sector, but at the same time, securing enough returns on investment by the mining companies. Attempts to increase the effective tax will give us some additional revenues in the short term, but will ruin the future of the mining industry. It will distort the economics of the mining projects and may affect new investment. The consequences are as grave as they were when we ruined the industry under ZCCM. Now that the mining industry is on an upward trajectory, with output expected to reach one million tons in the next three years, it would be very inopportune to now take measures that could reverse this trend.

Mr Speaker, we surely need to feed the cow that gives us milk so that tomorrow we can have more milk. A number of hon. Members asked the question why Zambia, with so many natural resources, remains poor. We can also extend the question and ask why natural resource-poor countries like Japan, Hong Kong, Singapore, Mauritius and others are rich. The current debate on the mining taxation partly illustrates the point. We all learnt that production and therefore, wealth creation has several factors that include natural resources, labour, capital, technology and a few others. Each of these factors needs the other to create sustained economic expansion. While Zambia, indeed, has the natural resources, it lacks adequate provisions of other factors such as capital. Without the other factors, natural resources such as land or mineral ores will, by and large, remain raw and untapped.

This is why it is necessary that we create an enabling environment so that we can attract other factors of production to Zambia such as capital and technology. And this is precisely what this Government is doing and the various projects that Hon. Mutati outlined yesterday are an example of that. Trying to undo this, as Hon. Kambwili is fond of doing with his hostile attitude towards those who bring capital to the country, will mean that the creation of new jobs such as those at Muliashi in Luanshya will be threatened.

Hon. Members: Hear, hear!

Dr Musokotwane: Mr Speaker, the wealthy countries with little or no natural resources have attained their status because they quickly learnt how to attract other factors of production to themselves. They have attracted capital and technology from all over the world and they have imported the raw materials from natural resource rich countries such as ours to create industrial complexes. To achieve this, they have adopted policies that are attractive to capitalists. We too can do the same and, with our natural resources, we can make very fast progress. It is important, therefore, that we are mindful of the type of taxes we impose, lest we eat just for now and then starve shortly thereafter.

By the way, I dispute the assertion that one of the PF Members made when he claimed that with a PF Government in place, they would reintroduce the windfall taxes. We know this to be totally untrue because the PF President wrote a letter to the former Minister of Finance and National Planning strongly condemning the introduction of the windfall tax.

Hon. Members: Hear, hear!

Dr Musokotwane: So, with that letter from the PF President condemning the windfall tax, are these PF Members now rebelling against their president, I ask, Mr Speaker?

Hon. Government Members: Hear, hear! Hammer!

Dr Musokotwane: Finally, let me talk about the crop levy. It has been argued, with great passion, that this Government has harshly disadvantaged local councils by abolishing the crop levy because many of them are dependent on this levy for survival. The Government wishes to strongly refute this for many reasons.

Mr Speaker, firstly, the Government has stated that it has put money aside in the Budget to compensate the councils fully. This is fairly easy because we have information on how much each and every council was collecting in form of crop levy. Therefore, with the money provided and available information, it will obviously be easy to compensate them.

Mr Speaker, secondly, the Government is against this tax because it created adverse economic conditions that discourage the long-term development prospects of agriculture in many of the district councils, especially those that are distant from the major consumption areas. Since most crops, especially maize, have to be transported from the remote growing areas to the heavy consumption areas along the line of rail, transport costs can be quite high.

Mr Speaker, for these remote growers imposing an additional cost in the name of crop levy, renders them even more uncompetitive in relation to growers near cities. And since the selling price is fixed by the market, meaning that the farmer cannot independently fix the price of their produce, it is the profit margin of the farmer that suffers in the face of  high transport costs and the crop levy. As a consequence, crop levy makes it even more uncompetitive to grow maize in remote areas. This works to the disadvantage of the remote areas because it discourages investments in those areas. This, of course, perpetuates poverty.

Mr Speaker, some hon. Members and this was strongly argued by Hon. Masebo, claim that the Government has removed crop levy because the intention was to favour the crop traders because they are the ones who pay crop levy and therefore, the removal of the levy has no meaning for farmers. This is a mistake. Economists are aware that there can be a divide between the intended target of the tax and the actual entities that bear the brunt of the tax. For example, the Government raises the tax on beer. The intention may be that the consumers must pay this tax to discourage drinking, but it could happen that the demand for beer may already be too low and the breweries may reckon that passing on this tax to the consumers may damage their business through lower sales. The breweries may, therefore, absorb the tax by leaving the price of beer unchanged so that their profit margins decline as they, themselves, meet the cost of the added tax.

Hon. Government Member: Hear, hear!

Dr Musokotwane: In short, although the tax was meant for the consumers, it is the breweries that end up paying it.

Mr Speaker, using similar reasoning, it is not necessary in that case that crop traders bear the brunt of the crop levy. In fact, they pass the cost of this to the farmers through reduced purchase prices since farmers tend to have little bargaining power. This analysis is not a mere theory, as Hon. Hachipuka is saying, because it reflects the reality on the ground.

  As I speak, I have a huge pile of letters from ZNFU members all over the country and all of them, without exception, are passionately commending this Government for abolishing the crop levy.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Mr Speaker, they have taken this stance because they understand very well that crop levy affects them. In other words, this is not a theoretical issues.

Mr Speaker, thirdly. is the issue of who we speak for as hon. Members of Parliament. This Government has been accused of showing no care for councils because of expunging crop levy.

Hon. UPND Members: Yes.

Dr Musokotwane: This is said even when we have clearly stated that councils will be compensated.

Interruptions

Dr Musokotwane: When we speak for the interest of councils, what do we precisely mean by councils? Do we refer to council employees or councils because we see ourselves as councilors since we are hon. Members of Parliament or, indeed, do we refer to councils in terms of buildings?

Interruptions

Dr Musokotwane: Sir, for the Government, the answer is very clear. In addition to the elements that I have spoken about, in other words the employees of councils, the councilors, the Government also, very importantly, include the interests of the people when we refer to councils. Councils are only councils, first and foremost, because of the human beings that live there. Without them, the other elements such as structures are meaningless because there cannot be councils without residents.

How then can hon. Members of Parliament ignore the interests of their residents and poor farmers that they represent and fail to see the injustice that the crop levy imposes as the economic analysis presented earlier demonstrated? I applaud Hon. Simbao for his excellent example during his debate which reminded all of us that this tax is really unjust.

Mr Simbao: Hear, hear!

Laughter

Dr Musokotwane: Mr Speaker, no doubt all the farmers throughout Zambia have listened very carefully to the debate on crop levy. I am sure, by now, they know which hon. Members of Parliament stand shoulder to shoulder with them …

Interruptions

Dr Musokotwane: … and those who are harshly against them.

Interruptions

Dr Musokotwane: Mr Speaker, if I may advise Hon. Muntanga, by keeping quiet on this unjust levy, he has turned against his voters and farmers. I would love Hon. Mwiimbu to come back …

Mr Mwiimbu: Seek my support.

Laughter

Dr Musokotwane: … and be in this House during the presentation of the 2011 Budget, but this can only happen if he co-operates with this Government.

Mr Mwiimbu: Aah!

Dr Musokotwane: Mr Speaker, if he chooses, at this very moment, to raise a point of order so that he can disassociate himself from this unjust tax, I will not feel offended.

Laughter

Dr Musokotwane: So let him stand up and disassociate himself through a point of order.

Hon. Government Members: Hear, hear!

Laughter

Dr Musokotwane: Mr Speaker, in concluding, I wish, once again, to commend the 2010 Budget to this House. This budget is an important cog in the rolling wheel that will deliver Zambia to the Vision 2030 aspirations. With the conducive environment that the Government provides and the excellent projects such as those mentioned by Hon. Mutati yesterday, Zambia is assured of a bright future. If we maintain this, the projects will just be like a starter meal. The main course is still to come so that we all get satisfied.

Mr Speaker, I thank you.

Hon. Members: Hear, hear!

Mr Speaker: Order!

Since the Order Paper does not provide for this, Committee work will commence tomorrow Thursday, 29th October, 2009.

ADJOURNMENT

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

Question put and agreed to.

______________

The House adjourned at 1907 hours until 1430 hours on Thursday, 29th October, 2009.