DAILY PARLIAMENTARY DEBATES FOR THE THIRD SESSION OF THE TENTH ASSEMBLY

Tuesday, 17th February, 2009

The House met at 1430 hours

[MADAM DEPUTY SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

________

QUESTIONS

CLOSURE OF NON-PROFIT MAKING MINES

124. Mr Imenda (Lukulu East) asked the Minister of Mines and Minerals Development:

(a) whether it was lawful for investors, as soon as they realised that they were not making profits, to close their mines without taking into account the plight of workers and their tax obligations to the Government;

(b) how much was paid to the workers who were laid off in 2008 as a result of the process at (a) above; and

(c) what measures had been taken to avoid a repeat of the same in future.

The Deputy Minister of Mines and Minerals Development (Mr Nkhata): Madam Speaker, the House may wish to know that Section 34 of the Mines and Minerals Development Act, 2008, provides for the suspension of mining operations on the occurrence of any force majeur (unforeseen event beyond the reasonable control of a holder). As of now, it is only Luanshya Copper Mines Plc (LCM) and Chambeshi Metals Plc (CMP) that have put their mining operations under care and maintenance due to depressed metal prices.

Madam Speaker, regrettably, the Bwana Mkubwa Processing Plant (BMPP) was shut down in 2008 because of the inability to obtain feed (oxide copper ore) from the Lonshi Mine in the Democratic Republic of Congo. Following the exhaustion of the tailings dump materials at Bwana Mkubwa, which was the prime feed stock for the plant, the mine decided to acquire material from Lonshi Mine. The Government has made efforts to assist the mine to have a normal supply of feed.

As regards the workers and tax obligations, mining companies are required under the labour laws to pay the workers all the outstanding dues before laying them off. Additionally, the mining companies are required to psychologically re-orient the workers for alternative livelihoods. All outstanding tax obligations due to the Government are required to be settled as per the Income Tax Act.

Madam Speaker, in response to part (b) of the question, a total of K37,223,763,314 was paid out by LCM Plc to workers that were laid off in 2008.

Mr Kambwili: Questions!

Laughter

Mr Nkhata: Bwana Mkubwa paid out a total of K18,165,144,000 to the workers that were laid off in 2008.

Madam Speaker, as regards to part (c) of the question, the Government is actively exploring ways of minimising suspension of mining operations. Some of the measures undertaken are:

(a) introduction of tax measures in the 2009 national Budget aimed at reducing production costs;

(b) in the short to medium term, strengthen the Ministry of Mines and Minerals Development through restructuring to increase compliance monitoring; and

(c) in the long term, possible increase of Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) equity in mining companies in order to have a controlling share. This will enable ZCCM-IH to have a bigger influence in the development and investment decisions made by mines where ZCCM-IH Plc would hold shares.

I thank you, Madam Speaker.

Mr Imenda: Madam Speaker, arising from the answer given by the hon. Minister, I would like to find out why the Government does not come up with a plan such as the one currently existing in South Africa where the local people are empowered to engage in huge projects such as running mining companies. Introducing such a plan in our country would put Zambians in a position to run mines such as the ones which have been dumped by the foreign investors.

The Minister of Mines and Minerals Development (Mr M. B. Mwale): Madam Speaker, although I do not understand the follow-up question by the hon. Member, I will, however, attempt to answer it. As a country, we have a long history in mining and have had many systems in place. As my hon. Deputy Minister has stated, whenever workers are laid off, they are supposed to be re-oriented psychologically on what next to do with their lives. Even in previous Governments, we have had schemes put up, like the one Kabwe, where a farming block has been set up to specifically cater for retrenched miners.

Madam Speaker, I pray that the hon. Member will come to my office so that I may get more details from him regarding this matter so that we may be able to move forward together as a country.

I thank you, Madam Speaker.

Mr D. Mwila (Chipili): Madam Speaker, even though, Government has a golden share in most of these mining companies, people still keep loosing their jobs. I would like to find out from the hon. Minister exactly what the problem is in most mining operations because I am concerned with the fact that a lot of people keep being retrenched whenever a mine closes.

Mr M. B. Mwale: Madam Speaker, I thank the hon. Member for Chipili for his follow-up question. If he followed the earlier response very clearly, one of the measures that we have put in place as the Government is to try and increase ZCCM-IH’s stake in the mining companies so that we can have a controlling share. This means that we can closely monitor operations and have a say on whatever is taking place in our mines.

Madam Speaker, as regards a golden share, it has got its own limitations in that, it may only apply whenever a serious valuation is supposed to take place, for example, in terms of finding other partners in that company. Regarding what transpired in the case of LCM Plc, as my Deputy Minister informed the House, it is taken care of through the Act.

I thank you, Madam.

Mrs Masebo (Chongwe): Madam Speaker, I just wanted to alert the hon. Minister and in the same vein, find out what he is doing about this problem because it is clear …

Madam Deputy Speaker: Hon. Member, you are not supposed to be alerting the hon. Minister, you ask a question.

Mrs Masebo: … the hon. Minister stated that a number of people have lost their jobs and we hear that more are going to be retrenched. I would like to find out from the hon. Minister whether he has made any efforts to arrange for a meeting between the Mine Workers Union of Zambia (MWUZ) and His Excellency. A meeting of such a nature is important as it can help the President understand the depth of the problems that are faced by the mines so that he can have a better appreciation of what is really on the ground.

Mr Mwale: Madam Speaker, in an instance like the LCM Plc one, the prime persons are the shareholders. This Government has continuously engaged the shareholders to see how operations at the mine can be continued.

As regards the unions, the Government has already engaged them to discuss issues surrounding the retrenchments. We are already making arrangements for the unions to meet His Excellency the President who is fully aware of the current situation on the Copperbelt Province.

I thank you, Madam.

Mr Milupi (Luena): Madam Speaker, does the hon. Minister agree that inspite of the drop in copper prices which happened only in the last quarter of 2008 that in fact, the average price in that year was in the excess of US$6,000 per tonne. Therefore, most mining companies were able to make profit such that the fall in copper prices could not be used as an excuse for retrenching anybody. Does he agree with that statement?

Mr Mwale: Madam Speaker, I am following the hon. Member very well. If I remember well, even the ministerial statement that I gave recently did indicate that this Government does not agree that the price of copper that is currently obtaining on the market can lead to a massive retrenchment of employees in the mines. As a Government of a country which is heavily involved in mining, we know what copper prices have been obtaining. The price of above US3,000 is very good and can still make the operations of any mine viable.

I thank you, Madam.

Mr Simuusa (Nchanga): Madam Speaker, ZCCM-IH holds shares in most mining companies on behalf of the Government; and indeed, the Zambian people. It also has got access to all the information from these mining companies. I would like the hon. Minister to tell me through you, why they always seem to be to be panicking whenever they hear that a mine is closing down or like they do not know what is really happening. It is surprising that whenever the investors announce that they closing a mine, we get shocked and yet ZCCM-IH is a shareholder which is also supposed to be a watchdog for the Zambians on the board.

Mr Mwale: Madam Speaker, I think the hon. Member is quite passionate about mining because of the area he comes from. ZCCM-IH is doing everything it could to see to it that it monitors the operations of the mines on the Copperbelt and elsewhere. I hope that the hon. Member has taken note of the commitment by this Government to increase its shareholding in mining companies so that it could have a say in the decisions taken in terms of investments and operations.

I thank you, Madam.

Mr Mwenya (Nkana): Madam Speaker, the answers that the hon. Minister has given have made me develop a lot of concerns over developments in Luanshya.To add to it all,  this is not the first time that we are seeing the closing of the mine in Luanshya. Closures of the mine in Luanshya have been happening from time to time. Would the hon. Minister of Mines and Minerals Development indicate to this House the viability of mining in …

Dr Scott crossed the Floor.

Madam Deputy Speaker: Order! The hon. Member for Lusaka Central knows exactly how to move in the House.

Dr Scott indicated assent.

Mr Mwenya: … Luanshya. If mining is not viable in Luanshya, what is the Government planning in terms of diversifying into other sectors, unlike the current situation where the only source of jobs is a mine that keeps closing down? Why can we not come up with a lasting solution so that our people are covered once and for all?

Mr Mwale: Madam Speaker, mining operations in Luanshya are still very viable. Let me inform the House that there are oxide caps which can be treated with the simplest form of technology through solvent extraction and electro-mining of copper. This form of technology is cheaper.  In essence, LCM is still very viable and has some life.

Madam Speaker, in trying to come up with a long-term solution, this Government is taking into account all the past mistakes. May I make an appeal to the people of Luanshya to remain calm. It may seem as if we are taking too long in coming up with a solution even when we are not. We are just trying to avoid what happened in the past by finding a credible investor.

Madam Speaker, we are very mindful of the welfare of the people of Luanshya as a Government.

Mr Kambwili: Question!

Mr Mwale: You can continue questioning us because you always want to find an opportunity to exploit when there is a crisis.

I thank you, Madam.

Mr Kambwili (Roan): Madam Speaker, the hon. Minister stated that the mine in Luanshya is viable while his Deputy Minister said mines can only close when they are faced with problems beyond their control. Is the hon. Minister not contradicting his Deputy Minister who said mine in Luanshya was closed because it was not viable and yet the hon. Minister is saying that the mine can still make money? I would also like to find out the viability of Baluba Mine in particular?

Mr Mwale: Madam Speaker, Luanshya Mine is still very viable. As I have alluded to, copper oxide caps can be treated at low cost at the mine. Therefore, I am not at all, contradicting my Deputy Minister.

I thank you, Madam Speaker.

Dr Machungwa (Luapula): Madam Speaker, the hon. Minister of Mines and Minerals Development has repeated several times that the Government intends to increase the shareholding of ZCCM-IH so that they can have a controlling share in most mines. Is the hon. Minister now saying that the Government is planning to nationalise the mines because if you buy controlling shares, you are nationalising? And also where will that money come from because you have failed to even resuscitate LCM?

Mr M. B. Mwale: Madam, I thank the hon. Member for asking that question because it will avail me an opportunity to clear the air. The Government has no intention of nationalising the mines. When I refer to have a controlling share, it means having decision making powers. When you have a shareholding of less than 15 per cent, you have no control in terms of decisions and directing the operations of the mines. We also prefer to increase our equity in the mines to the 25 per cent or 30 per cent level so that we can have a say in whatever happens in the mines and not shareholding of over 51 per cent.

I thank you, Madam.

Mr Chongo (Mwense): Madam, the hon. Minister in his answer said that many metallurgical plans are being studied in trying to find new sources of feed. Now, since this is the case, does the hon. Minister not see the need to revamp old sites instead of encouraging new metallurgical plants which do not even have adequate feed so that at least other mines do not close because of non-availability of feed?

Mr M. B. Mwale: Madam, the only thing that the Government has done is to ensure that the BMPP and other smelters have the necessary feed.

Madam Speaker, let me inform the hon. Member that the installed capacity of smelters as of now is 750,000 metric tonnes, but I am sure he is quite aware that our production as of now in terms of statistics is slightly above 500, 000metric tonnes. This means that we have excess capacity of over 200,000 metric tonnes and, therefore, we can do well with the importation of concentrates from neighbouring countries so that BMPP can have the necessary ore for its production purposes.

I thank you, Madam.

Mr Mukanga (Kantanshi): Madam Speaker, the miners that were retrenched in 2000 have not been paid their pension fund contributions by Mukuba Pension Scheme because the mining companies they were working for were not remitting their contributions to the pension authority. What institutional framework exists to compel these mining companies to honour their obligations in that respect?

Mr M. B. Mwale: Madam, I realise that the hon. Members has smartly sneaked in the question, but he would have done well to have submitted that question. However, I would like to inform him that those companies who are yet to remit their Mukuba Pension Scheme contributions have to fulfill that obligation at the point of exit and when they leave without doing so, ZCCM-investment Holdings meets does it.

I thank you, Madam Speaker.

Mr Mushili (Ndola Central): Madam, in answer to the supplementary question asked by the hon. Member for Chipili, the hon. Minister said that…

Interruptions

Mr Mushili: … Government will buy more shares in the mining companies. Is the Government considering inviting the local…

Madam Deputy Speaker: Order! Can we follow the debate?

May the hon. Member for Ndola Central continue, please.

Mr Mushili: Is the Government considering inviting local private companies to buy shares in the existing mining companies that are owned by foreigners?

Mr M. B. Mwale: Madam, I thank the hon. Member for his follow up question. I would like to inform the House that most of these mining companies are publicly listed and anybody is free to buy shares.

Madam, I thank you.

Mr Beene (Itezhi-tezhi): Madam, the major factor which has caused a lot of instability in the mining sector is the global recession. The Government is putting in measures to make sure that they help these mines so that they do not completely collapse. When is the Government going to follow what other governments are doing in other parts of the world to help bailout their local industries from closing up?

Mr M. B. Mwale: Madam, the Government is alive to the fact that Zambians are well informed. They are hearing what other governments are doing to bail out their industries.

This country does not have the capacity to inject funds into the ailing industries. However, what we have done as indicated through the pronouncements of the hon. Minister of Finance and National Planning in way of giving an incentive to the mines is to remove windfall tax. This is a move that has not been appreciated by many hon. Members. The other issue is that in order to see that our smelters are utilised to the fullest, the importation of concentrates is being discouraged.
 
I thank you, Madam.

Mr Nkombo (Mazabuka): Madam, arising from the answer the hon. Minister gave regarding the Government’s intention to find more credible investors with regard to LCM, I would like to know if he is implying that the existing investor is not credible. When did the hon. Minister find out that this current investor is not credible? Was it at the time when the copper prices came down? If you did find out before then, what action did you take in order to save the people’s jobs?

Mr M. B. Mwale: Madam, at no time did I state that the current owner of LCM is not credible. However, as a Government, we would like to see to it that we find a credible investor for the Mine. That is not one and the same. However, the point that I would like to reiterate is that we need the support of this House to ensure that the Ministry of Mines of Minerals Development is strengthened so that it can carry out its monitoring role.

I thank you, Madam Speaker.

ACQUISITION OF SPORTS EQUIPMENT FOR RURAL AREAS

125. Ms Limata (Luampa) asked the Minister of Sport, Youth and Child Development when the ministry will assist the youth in rural areas to acquire sports equipment such as footballs and jerseys.

The Deputy Minister of Sport, Youth and Child Development (Dr Kalila): Madam Speaker, my ministry has been distributing sports equipment, especially footballs to the youths in rural areas through their respective hon. Members of Parliament.

Hon. Government Member: Hear, hear!

Dr Kalila: Madam Speaker, according to our records, my ministry has so far distributed well over 1,032 footballs to 105 constituencies. It is my ministry’s considered view that these footballs are given to youths who cut across party affiliations but live together in their respective constituencies.

Madam Speaker, it is not the responsibility of my ministry to distribute jerseys to clubs. You may wish to know that clubs are responsible to dress their teams. In a case where my ministry has distributed jerseys, the rationale was to reward winners during sports festivals or community tournaments that have been monitored by us.

I thank you, Madam Speaker.

Mr Chisala (Chilubi): Madam Speaker, the provision of the football jerseys would remain of no value if stadiums are not constructed countrywide. I would like to find out from the hon. Minister whether his Ministry has any plans to construct stadiums of a modern standard.

The Minister of Sport, Youth and Child Development (Mr Chipungu): Madam Speaker, we have answered this question before, that we have no plans to build stadiums for the simple reason that we have no funds.

I thank you, Madam.

Mr Malama (Mfuwe): Madam Speaker, I would like to find out from the hon. Minister when the ministry will increase the number of footballs that are distributed to constituencies, as the current allocation, which is ten per constituency, is not enough.

Interruptions

Madam Deputy Speaker: Order!

Mr Chipungu: Madam Speaker, we shall definitely increase the allocation when we receive more footballs from well wishers, or indeed, when we have the money to procure more.
 
Madam Speaker, may I take this opportunity to say that up to now, some of the hon. Members of Parliament have not come forward to collect their footballs. Please, do not cry foul when the opportunity is taken away from you.

I thank you, Madam Speaker.

Mrs Musokotwane (Katombola): Madam Speaker, I would like to urge the ministry to ensure a more user friendly distribution system of the footballs instead of the current one where you are told to go back over and over again, if the person in charge is not available. Some of us have already been there twice and not found the person in responsible for distributing the footballs. There must be another person to attend to us and give us the boreholes. I am sorry the footballs.

Laughter

Madam Deputy Speaker: That was a comment. Can we have the next question?

ALLOCATION OF LAND TO WOMEN COUNTRYWIDE FROM 2006-2008

126. Ms Limata asked the Minister of Lands how many women countrywide were allocated land from 2006 to 2008, year by year.

The Deputy Minister of Lands (Mr Hamir): Madam Speaker, the number of women who were allocated land from 2006 to 2008 countrywide was 3,698. This is broken down as follows:

Year   No. of Offers Issued

2006   1,623
2007   1,001
2008   1,074

I thank you, Madam Speaker.

Dr Kalumba (Chienge): Madam Speaker, in terms of ratio or percentage, how does that compare to the total number of men allocated with land?

The Minister of Lands (Mr Mukuma): Madam Speaker, in terms of percentage, the allocations stand as follows:

Year   No. of Offers Issued  Percentage

2006   1,623    21.7   
2007   1,001    19.9
2008   1,074    18.6

I thank you, Mr Speaker.

Mr Mukanga (Kantanshi): Madam Speaker, considering that the figures the hon. Minister has given are going down, what plans has the ministry made to ensure that the women folk are encouraged to acquire land.

Mr Mukuma: Madam Speaker, as the hon. Members are aware, land is distributed through the councils which are our agents. As a ministry, we shall continue to pressurise the councils to observe the Government policy of allocating 30 per cent of land to women. Maybe, previously, we had not asserted enough authority on the councils. However, we have now decided that this point should be emphasised so that 30 per cent of the land in any given area is actually allocated to women.

I thank you, Madam.

Hon. MMD Member: Hear, hear!

Mr C. K. B. Banda, SC. (Chasefu): Madam Speaker, may the hon. Minister tell the House how many women were allocated farm land out of the total pieces of land allocated.

Mr Mukuma: Madam Speaker, we will require to sit down again as a ministry to analyse these figures in order for us to properly establish how many of the women were allocated farm land, residential or commercial plots. In the meantime, we could only manage to come up with the breakdown of the ratios.

I thank you, Madam Speaker.{mospagebreak}

GLOBAL FINANCIAL CRISIS EFFECTS ON ZAMBIA

127. Mr Imenda asked the Minister of Finance and National Planning what the latest position of the Government was on the effects of the global financial crisis resulting from the credit crunch in the United States of America (USA) on the Zambian economy.

The Deputy Minister of Finance and National Planning (Ms Kapwepwe): Madam Speaker, I would like to state that the global economy is in a state of recession and turmoil. What started as a localised credit crunch in the USA has now spread across the world with varying effects.

Madam Speaker, the effects of this crisis have been felt on investment and growth in advanced economies, creating a recessionary climate in these countries that eventually has spread to the rest of the world.As a result, our growth prospects have also been threatened with a slowdown expected in the mining, tourism and construction sectors.

Job losses have already started occurring in some of the sectors causing second round effects within the economy. The Gross Domestic Product (GDP) has emerged largely unhurt in 2008 and grew at 6 per cent, but is expected to slow down in 2009.

The Government’s assessment so far indicates that the banking sector in Zambia has not been severely affected by this crisis. This, however, does not mean that the sector is not vulnerable to second round effects such as companies that have borrowed money from banks failing to repay as a result of cash flow problems arising from the slow down in economic growth this year.

The more direct effect has been on Zambia’s main export commodity which is copper which has had its price plummeting to around US$ 3200 per metric tonne from a high of around US$ 8900 per metric tonne in June last year. This has led to closure of some high cost mines and in turn has led to some job losses.

Madam Speaker, further, the exchange rate of the Kwacha against major currencies has been depreciating. This is largely attributed to the global economic crisis.

Interruptions

Ms Kapwepwe: In addition, interest rates on Government Securities and commercial lending rates have increased explained partly by negative investor sentiments.

Interruptions

Madam Deputy Speaker: Order! Hon. Members, the Chair must listen. If there are other issues that you want to discuss, leave the house and then come back when you are through. You cannot speak continuously and make the Chair strain in order to listen to what is being said on the Floor of the House.

Hon. Deputy Minister, you may continue.

Ms Kapwepwe: Madam Speaker, foreign portfolio investors have become increasingly risky averse to domestic assets such as bills and Government bonds. One of the consequences of this has been a draw down on their holdings on Government securities, as those that have matured have not been rolled over.  This weakened demand for Government securities has led to a gradual increase in interest rates. This has, in turn, led to an increase in bank commercial lending rates.

Madam Speaker, the impact of the global events I have described and the subsequent effects on the domestic economy will significantly affect budget operations in 2009. While this situation warrants concern, there is need to put the effects of global crisis in context at least on the basis of the current prices of copper. Although the copper prices have drastically fallen from their peak in July, 2008, their present level is still much higher than the waste that we have seen in the last ten years. About a decade ago, a metric tonne of cooper sold for US$1,332. The situation is, therefore, not yet a disaster and as such we should not lose confidence. Further, an expected increase in copper production of 180,000 metric tonnes from Lumwana in 2009, will help.

It is also imperative to note that the Government views these events as a short-term phenomenon. In the medium to long run, the Government is confident that Zambia will continue to provide a strong and conducive environment for investors and businesses alike.

I thank you, Madam Speaker.

Mr Imenda: Madam Speaker, the situation that has been given by the hon. Deputy Minister is alarming.

Laughter

Mr Imenda: As a result, various countries, have given their survival plans regarding the world economic crisis.

Hon. Opposition Members: Hear, hear!

Mr Imenda: In Zambia, the crunch is treated like its nothing serious. For us in Zambia, it seems its still business as usual. When are we going to be availed a survival plan for Zambia?

The Minister of Finance and National Planning (Dr Musokotwane): Madam Speaker, every country has designed a survival plan according to the specific circumstances that they are facing. This is a matter that, perhaps, I can speak a little bit more at length tomorrow as I wind up the Motion. In case of Zambia, the Budget indicated specific areas that constitute our survival strategy. Firstly, we want to be able to moderate the effects of the crisis on the mining sector and measures to do this were adequately outlined in the Budget. Secondly, to deliberately promote or encourage the development of other sectors so as to minimise the total impact of the crisis on the rest of the economy because there will be a number of sectors to depend on. For now, that is all I can say, Madam Speaker.

I thank you, Madam Speaker.

Mr Mwiimbu (Monze Central): Madam Speaker, one of the effects of the global financial crisis is the steep rise in food prices. What measures is the Government putting in place to cushion the people of Zambia from this global food crisis which is affecting the people of Zambia, especially, the people of Sichifulo, who the hon. Minister of Southern Province does ...

Major Chizhyuka: Hear, hear!

Madam Deputy Speaker: Order!

Laughter

Madam Deputy Speaker: Order!

The Sichifulo issue was dealt with in this House and is over. No hon. Member would be allowed to sneak it into the debate.

Interruptions

Madam Deputy Speaker: Order!

Dr Musokotwane: Madam Speaker, the hon. Member is aware that a few weeks ago the Government announced plans to sell subsidised maize to the millers which resulted in the reduction of mealie meal prices. Obviously, the Government cannot subsidise everything.

Secondly, he is also aware of the number of initiatives that the Government announced in the Budget to support the agricultural sector in the coming few years.

I thank you, Madam.

Ms Kapata (Mandevu): Madam Speaker, I would like to find out from the hon. Minister, with the global financial crisis, which of the Millennium Development Goals is Zambia going to attain by the year 2015 and which ones are going to fall out.

Dr Musokotwane: Madam Speaker, we believe that this financial crisis is not permanent, but may last for one or two years, although we are not quite sure. Therefore, in as much as it threatens the attainment of the Millennium Development Goals (MDGs), I still believe that we should not see this as a disaster that is going to close everything we are working on. We expect improvements in the economy in the next coming few years.

I thank you, Madam.

Mr Hachipuka (Mbabala): Madam Speaker, a few years ago, this country experienced an economic crisis, the late President Levy Mwanawasa, may his soul rest in peace, organised an Indaba. This meeting involved many citizens coming together to decide the country’s way forward. Why is this Government not contemplating revising the Medium Term Expenditure Framework (MTEF), Fifth National Development Plan (FNDP) and Vision 2030, publicly, so that all stakeholders can be seen to participate in shaping a new direction for the country in view of the credit crunch?

Dr Musokotwane: Madam Speaker, the meeting that the hon. Member is talking about will be arranged in due course and the date will be announced to the public. I can confirm that, it is coming. However, let me also add that irrespective of the way we see it, the fundamental issue, in the case of Zambia, is over dependence on one sector, copper. It boils down to the issue of how we diversify the economy and recommendations in this regard have already been made by different stakeholders. Therefore, you will notice the FNDP is about diversifying the economy. I think the most critical issue is how to start this diversification.

I thank you, Madam.

Hon. Government Members: Hear, hear!

Dr Scott (Lusaka Central): Madam Speaker, one of the prerequisites of diversification is affordable interest rates, but in this country, the economic managers are allowing the rates to rise astronomically in response to the pull out of the so-called portfolio investors that everybody else in the world calls currency speculators. Can the hon. Minister tell us how he intends to square the need for diversification with the high interest rates prevailing? Nobody except a slightly insane person would borrow money for investment at the current rates.

Dr Musokotwane: Madam Speaker, it is true that there is need for interest rates to come down, especially at this time when the cycle demands for diversification of the economy which requires more investment so that more jobs can be created due to the high demand for goods and services. In the next few weeks, this is something that we will be working on, very strongly with my colleagues at the Bank of Zambia, so that we can get the problem sorted out.

I thank you, Madam.

Mr L. J. Mulenga (Kwacha): Madam Speaker, it is very clear that our investment portfolio in this country is dominated by foreigners and the operations of these investors are threatened in countries where the credit crunch is real. Will the hon. Minister of Finance and National Planning tell this House that we are not glossing over issues that may affect the operations of these international companies because once these firms are hit, especially those in the financial sector, we will be done as a country.

Dr Musokotwane: Madam Speaker, the majority of the banks in this country are local banks. Zambia National Commercial Bank Plc (ZANACO) is still the biggest bank in the country. The foreign banks we are basically talking about are Standard Chartered Bank and Barclays Bank. These are very significant players but the most fundamental point worth noting is that the local banks that are in this country are separately incorporated and regulated. In this regard, they are shielded from the shocks that are affecting the operations of the other banks in other parts of the world. From that perspective, I do not see the basis for the kind of fear that the hon. Member has. In any case, even for those foreign banks other than for one which is still operating quite well, I have not heard of any problems with their parent banks abroad.

I thank you, Madam Speaker.

Mr C. K. B. Banda (Chasefu): Madam Speaker, the exchange rate has admittedly gone wild, if not unpredictable of late. Is it as a result of the global financial crisis and if not, what is responsible for this?

Dr Musokotwane: Madam Speaker, in the written response that we provided, we did alluded to the relationship between the global economic crisis and what is happening to Zambia’s economy, including its exchange rate. However, we do believe that what is happening currently is to some extent an exaggeration and is something that we are looking into. I have been dealing with these issues since 1993 and never at any time did we have such an exchange rate problem. I believe that our economy is better placed today than in 1993 to withstand pressures from the world economy that may affect our exchange rate. I therefore, believe that the exchange rate problem that we are currently experiencing is exaggerated.

Madam Speaker, let me also add that the economic recession’s impact on the exchange rate is not just affecting Zambia. We have seen the same phenomena in a number of other African countries. To some extent, I would perhaps even say we have fared better.

I thank you, Madam Speaker.

Mr Lubinda (Kabwata): Madam Speaker, in response to one of the questions raised, the hon. Minister said that this crisis would not last for long. Within one or two years, it will be over. What economic fundamentals is he using to predict that the global economic crisis will be over within one or two years when there are countries such as Japan that have been facing recession for a better part of the last twenty years, given that this country never ever foresaw this economic crisis?

Dr Musokotwane: Madam Speaker, I do admit that one can never be absolutely sure. At the same time, I think one needs to examine the kind of actions that have been taken elsewhere to deal with this crisis. In our response, I started by indicating that this crisis started in the banking sector where confidence broke down because people were failing to pay their debts. We know that in the affected countries, governments have taken steps to recapitalise some of the major players in their financial sector. Governments in these countries have taken steps to encourage banks to start lending. So, this is something we know is positive and is happening.

Madam, similarly, in these same countries, a large part of the crisis is caused by the fact that the confidence of the consumers and investors has gone down and they are spending less. Therefore, the production capacity is there, but people are simply spending less. It is only a few days ago when we all heard that the United States of America Congress has approved a stimulus package. In this regard, it is these positive elements which I believe are addressing the issues at hand that give me some hope that in fact, the crisis will not last long. The crisis in Japan that is being talked about lasted long largely because the banking then was ‘toxic’ and the Japanese Government did very little or nothing to sort out its banking crisis. This time, that is not the case.

I thank you, Madam Spekaer.

Hon. Government Members: Hear, hear!

PROVISION OF TRANSPORT TO THE OFFICE OF THE PRESIDENT

128. Mr Chisala (Chilubi) asked the Vice-President and Minister of Justice when suitable transport would be provided to officers in the office of the President (Special Division) to enhance their operations.

The Deputy Minister in the Vice-President’s Office (Mr Sichilima): Madam Speaker, Government has over the years been acquiring suitable land and water transport within the resources available for the Office of the President, Special Division. This exercise will continue.

Madam Speaker, I thank you.

Mr Chisala: Madam Speaker, we all know the importance of that particular office. In places such as Chilubi, the people have serious problems in terms of water transport. As I am talking…

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

Madam Deputy Speaker: A point of order is raised.

Mr Muyanda: Madam Speaker, is the House in order to go on with the proceedings when question numbers are transposed. What is indicating on our screen is Question 129 when in the actual sense, it is Question 128. I need your serious guidance.

Interruptions

Madam Deputy Speaker: Order! The question numbers on the Order Paper are correct. I think the mistake is on the other side and we will ask our colleagues dealing with the machines to correct what they have put on the screen. The hon. Member may continue.

Mr Chisala: Madam Speaker, all of us know that this office plays a very instrumental role in protecting the Zambian community. His Honour the Vice-President and Minister of Justice may wish to know that the people of Chilubi and Luwingu Districts have no reliable water transport. All the purpose boats are in a limping state. When will the Government consider buying modern boats for the office in question?

The Vice-President and Minister of Justice: Madam Speaker, I wish to inform this august House that in 2006 and 2007, Chilubi was allocated a new land cruiser and a boat. I can also confirm that we are in the process of procuring another land cruiser for the same area, which I think will alleviate the problem of transport to some extent.

Madam Speaker, the issue of procuring vehicles and boats is an on-going undertaking, which we are committed to.

I thank you, Madam.

UNBUDGETED EXPEDINTURE IN 2008

129. Mr Imenda asked the Minister of Finance and National Planning how much, in unbudgeted expenditure, was spent on the following in 2008:

(a)      increase in civil service wages;

(b)       presidential by-election;

 (c)       power rehabilitation programme; and

(d)      importation of fuel.

Ms Kapwepwe: Madam Speaker, the increase in the civil service wage took up a total amount of K178.7 billion. This was in addition to the K323.9 billion, initially budgeted for under the Medium Term Pay Reform Programme, under head 99, Constitutional and Statutory Expenditure. The total provision for the Medium Term Pay Reform Programme was therefore K502.6 billion.

Madam Speaker, the by-election in total took up K247.0 billion. Of this amount, K216 billion went directly to the Electoral Commission of Zambia (ECZ), K5 billion went to the National Registration Office, K1 billion went to the Ministry of Information and Broadcasting Services for publicity, K8 billion went to the Zambia Air Force and K17 billion went to the Zambia Police.

Madam Speaker, the Government spent K98.5 billion on the power rehabilitation project. Resources had to be provided in view of the critical power situation in the country.

In conclusion, the importation of fuel has not been financed through the budget, but by using short term credit facilities from the PTA bank.

Madam Speaker, I thank you.

Mr Imenda: Madam Speaker, I would like to find out from the hon. Minister the extent of effect that the expenditure mentioned has had on the current budget.

Dr Musokotwane: Madam Speaker, the impact of this expenditure was largely on the 2008 Budget, when supplementary provisions were brought to this House. Secondly, some of the expenditure was extremely large, for example, the presidential by-election. Therefore, a number of programmes from last year’s Budget had to be suspended.

Madam Speaker, I thank you.

Mr Chisala: Madam Speaker, which specific areas were affected as a result of this unbudgeted for expenditure? Further, how were these programmes compensated in 2008?

Dr Musokotwane: Madam Speaker, I do not have the exact details. However, I believe some capital projects and certain running costs of the Government were affected.

I thank you, Madam.

Mr Lubinda (Kabwata): Madam Speaker, could the hon. Minister explain the extent to which these figures were captured in the supplementary expenditure report which was presented here in October, last year.

Dr Musokotwane: Madam Speaker, I believe we came to the House and presented supplementary expenditure reports in the case of all these items.

I thank you, Madam.

TOURISTS WHO VISITED ZAMBIA FROM 2006 TO 2007

130. Mr Imenda asked the Minister of Tourism, Environment and Natural Resources:

(a) how many tourist visited Zambia in 2006, 2007 and 2008;

(b) how much revenue was earned from the tourism sector in the period at (a) above;

(c) to what extent visa fees were helping or encouraging tourists to visit Zambia compared to other countries in the SADC region; and

(d) what factors made Zambia unattractive in tourist arrivals compared to South Africa, Kenya and Botswana.

The Deputy Minister of Tourism, Environment and Natural Resources (Mr Mwangala): Madam Speaker, 758,860 tourists visited Zambia in 2006 while 897,413 visited in 2007. The ministry has not yet completed collection and compilation of data for the tourists who visited in 2008. Therefore, the number of tourists who visited in 2008 can only be availed once the exercise is completed and information validated.

Madam Speaker, the estimated revenue earned from the tourism sector in 2006 was US$176,700,00.00, while in 2007 it was US$ 188,000,000.00. As stated above, the amount in revenue earned in 2008 will be availed as soon as the exercise of data compilation is completed.

Mr Kambwili: Quality!

Mr Mwangala: Madam Speaker, it is not possible to determine the impact of the revision of the visa fees at the moment. The effects will only begin to show after one or two years as the statutory instrument on the waiver and revised visa fees was only issued two months ago. 
 
Madam Speaker, all the three countries namely, Sasa Afilika…

Laughter

Mr Mwangala:…Kenya and Botswana are at an advantage in terms of attracting international tourists due to the following reasons. Zambia has no national airlines while South African and Kenya have big national airlines compared to…

 Interruptions

Madam Deputy Speaker: Order!  I am sure the House is interested in listening to the answer. Can we give an opportunity to the hon. Minister to finish speaking.

 Hon. Government Members: Hear, hear!

Mr Mwangala: Madam Speaker, I will repeat because of the noise.

Madam Speaker, Zambian has no national airline while South Africa and Kenya have big national airlines capable of competing internationally. By offering international flights, tourists are able to fly directly to these countries thereby reducing on the cost of travel since they do not have to make a number of connections. Although Botswana’s national airline is not that big, it is able to service domestic routes effectively and is well linked to international carriers.

Zambia’s tourism infrastructure is relatively underdeveloped in terms of the road network, airports and telecommunication compared to the three countries.

Quantity and quality of support facilities like accommodation establishments, eating outlets, entertainment houses, banking and health facilities are cardinal for any successful tourism destination.  Unfortunately, Zambia is lacking in most these facilities in comparison with the three counties. For instance, it is almost impossible to pay for services in Zambia using credit cards outside the line of rail, yet, most tourists depend on credit cards.

Madam Speaker, in comparison with the three countries, the private sector in Zambia has a long way to go in terms of service delivery. Despite the immense opportunities in the tourism sector, they have not been able to seize them so that they can make the country’s tourism sector internationally competitive.  This is largely due to the dependence syndrome, where every entrepreneur looks to Government to kick start every developmental activity. There is need for the private sector to be pro-active like they are in the rest of the region

Madam Speaker, in the region Zambia has the lowest marketing and promotional budget. For instance, Sasa Afilika’s marketing and promotion budget is well over U S $180 million…

Interruptions

Madam Deputy Speaker: Order! At least, the Chair would like to listen. People seem not to be ready to listen to this answer on both sides of the House. It is very important that we listen to every answer that is given by Government. I want to encourage hon. Members sometimes not to concentrate on looking at the short comings in our speech or reading and get derailed from the real issues.  We know very well that in the neighbouring countries our colleagues are able to debate even in other languages local languages. Therefore, let us appreciate that we are able to communicate which is what matters the most.

 Hon. Government Members: Hear, hear!

Madam Deputy Speaker: Order! Really, this appeal is for both sides of this House. Can we allow the hon. Minister to read through his answer.

Mr Mwangala: Madam Speaker, it is now a culture of this House…

Madam Speaker: Order!

 Laughter

Madam Deputy Speaker: Order! You do not qualify anything that the Chair has ruled on. Continue reading your answer.

Laughter

Mr Mwangala: In the region Zambia has the lowest marketing and promotional budget. For instance South Africa’s marketing and promotional budget is well over U S $180 million, Tanzania’s is U S $18 million and Botswana’s is U S $7 million. Kenya’s figures are not available, but well above Tanzania while Zambia’s budget is an equivalent of U S $1 million which is not adequate.

The three countries have well equipped and managed transport sectors in terms of luxury coaches, tour and transfer vehicles, serviced trains and others forms of transportation.

Madam Speaker, the above factors inhibit Zambia from attracting more tourists in comparison with South Africa, Kenya and Botswana.

 I thank you, Madam Speaker.

 Hon. Members: Hear, hear!

Mr Imenda: Madam Speaker, realising that we are not competing favourably, the implementation of the Botswana/Namibia Triangle will increase the influx of tourists into Zambia. When will we be in a position to effect that arrangement?

The Minister of Tourism, Environment and Natural Resources (Ms Namugala): Madam Speaker, the hon. Deputy Minister has given a very comprehensive answer.

Mr Kambwili: Question!

Laughter

Ms Namugala: On the Trans-frontier Conservation Areas (TFCA), I want to assure the hon. Member of Parliament that we are working very hard with the two countries mentioned to ensure that we realise the overall objective of that initiative.

 I thank you, Madam Speaker.

Mr Mwiimbu (Monze): Madam Speaker, it is right to state that the majority of international tourists who visit Zambia are from the United States of America, Britain and South Africa. It is also a fact that these countries are very sensitive to issues related to human rights. What measures is this Government putting in place to ensure that there is no brutality by wildlife rangers in the game management areas (GMAs) and national parks.

 Hon. Opposition Members: Hear, hear!

Ms Namugala: Madam Speaker, this Government ensures at all times that human rights are protected and that there is no brutality whatsoever anywhere where we have wildlife police officers managing GMAS and national parks.

I thank you, Madam Speaker.

Mrs Mwamba (Lukashya): Madam Speaker, I would like to know the actual revenue earned by this sector in the two years that the hon. Minister referred to. What has been given here is revenue to Government. What was the actual revenue earned by the tourism sector?

Mr Lubinda: Hear, hear!

Ms Namugala: Madam Speaker, the revenue that was mentioned is the revenue earned by the sector and not by Government. Therefore, it is the total revenue earned by the tourism sector.

I thank you, Madam Speaker.

Hon. Government Member: Hear, hear!

Major Chizhyuka: Madam Speaker, with regard to revenue gained, I just want to know what happened to the K216 million …

Laughter

Major Chizhyuka: … which the hon. Minister mentioned in her ministerial statement as the money that was earned for three years from 2003 to 2005 in the Sichifulo Game Management Area.

Hon. UPND Members: Hear, hear!

Laughter

Major Chizhyuka: Madam Speaker, if we divide the K216 million which her ministry earned for three years, by a denominator of 100,000 people in Chief Nyawa and Chief Siachitema, what actual benefit do the  local  people of  Sichifulo get …

Hon. UPND Members: Hear, hear!

Major Chizhyuka: … given the fact that my calculation realises K780.00 per person which does not even buy a newspaper or a tissue paper. Is that good revenue and what economic value does that add to our people as perpetrated by the ministry?

Hon. UPND Members: Hear, hear!

Laughter

Mr Kambwili: Yaa, mwaliba abaume muno!

Madam Deputy Speaker: The Minister may answer if she has done all her  
calculations …

Laughter

Madam Deputy Speaker: … and considering the word “perpetration”, she may answer if she has the answer.

Ms Namugala: Madam Speaker, the question we are dealing with has to do with the revenue earned by the tourism sector. However, I would like to inform the hon. Member that the money that is earned by the community resource boards is particular to a specific area. In the case of Sichifulo, which we dealt with this last week, we indicated that this money is shared between the Zambia Wildlife Authority (ZAWA) and the community resource boards, which include the chiefs who appreciate what Government has done for the area.

Hon. Government Members: Hear, hear!

Interruptions

Mr Chisala (Chilubi): Madam Speaker, last year, when I visited the Ministry of Tourism, Environment and Natural Resources, I was told that the Government of the Republic of Zambia was in the process of creating a game reserve in Lusaka. It was an idea that I welcomed because I knew that if a tourist centre is created in Lusaka, definitely the country is going to be earning some revenue from it. How far has the ministry gone in creating a tourist centre within Lusaka?

Ms Namugala: Madam Speaker, it is true that Government intends to open a park in Lusaka. We are on course. This park will be opened before June this year.

I thank you, Madam Speaker.

PROJECTS FOR NEEDY WOMEN IN ZAMBIA

131. Ms Limata asked the Minister of Gender and Women in Development what plans the ministry had made to ensure that women in need countrywide were mobilised and assisted by the Government with start up capital for income generating projects.

The Deputy Minister of Gender and Women in Development (Ms Changwe): Madam Speaker, the House may be aware that the Gender In Development Division (GIDD), is the national co-ordinating body for gender matters. Therefore, the mandate for GIDD is to co-ordinate, monitor and evaluate the implementation of the National Gender Policy which it hopes will enhance the full and equal participation of both women and men in the socio-economic and political development of Zambia.

Madam Speaker, the good news is that currently, GIDD has developed a Joint Gender Support Programme which it will use as an instrument to mobilise resources and to among other things, facilitate and operationalise partnerships that will promote the implementation of initiatives for the economic empowerment of women. This initiative is aimed at providing funds to women as start up capital.

Madam Speaker, the Division has, through the Joint Gender Support Programme set aside K1,496,000,000 for the years 2009 to 2011.This money will be used to run a grant facility that will support different projects by women. Furthermore, the Division has also set aside K581,967,000 to be used for providing entrepreneurship training to women. In implementing these activities, GIDD will work with the relevant institutions that relate to these issues. The implementation of these activities will be done in rural districts in all the nine provinces of Zambia.

Madam, in terms of facilitating the economic empowerment of women, the Division is working with the relevant public service institutions to ensure that women are specifically targeted during programme implementation. These institutions include:

(i) the Citizens Economic Empowerment Commission (CEEC) which is operating the Economic Empowerment Fund (EEF) for both women and men;

(ii) the Ministry of Community Development and Social Services;

(iii) the Ministry of Labour and Social Security;

(iv) the Ministry of Mines and Minerals Development;

(v) the Ministry of Agriculture and Co-operatives;

(vi) the Ministry of Lands; and

(vii) the Ministry of Education.

Madam Speaker, in accordance with the division’s responsibility, even though these programmes shall be implemented by the different ministries, it shall ensure that they are all gender responsive.

I thank you, Madam Speaker.

Mrs Musokotwane (Katombola): Madam Speaker, it is saddening that the question was going to the Ministry of Gender and Women in Development but the answer is coming from GIDD which is just a division. When is Government going to bring legislation in this House which will make the Ministry of Gender and Women in Development strong in real terms so that when we ask questions to the ministry, we are not answered by the Permanent Secretary in GIDD?

Madam Deputy Speaker: That question is slightly out of the power of the Minister of Gender and Women in Development.

Mr Lubinda: Madam Speaker, when GIDD was established, it was given the mandate to provide policy guidance on gender issues to the Government. Why is it that now we are being told that this division is also going into actual implementation which is the domain of the Ministry of Community Development and Social Services? Why are you moving away from providing policy guidance to the actual implementation of programmes?

The Minister of Gender and Women in Development (Ms Sayifwanda): Madam Speaker, with your permission may I read the answer my hon. Deputy Minister gave in reply to the substantive question and I quote: “Gender in Development Division is going to work hand in hand with the Ministry of Community Development and Social Services, Ministry of Labour and Social Security and other ministries which were mentioned.”

Madam Speaker, GIDD is going to coordinate these programmes through the ministries which are highlighted in the reply.

I thank you, Madam Speaker.

RECRUITMENT OF LOCAL COURT MANGISTRATES COUNTRYWIDE

132. Ms Limata asked the Vice-President and Minister of Justice when the Ministry will recruit more local court magistrates countrywide and in Luampa Parliamentary constituency, in particular.

The Deputy Minister of Justice (Mr Chilembo): Madam Speaker, the recruitment of local court magistrates to replace those who have retired and for new local courts is an ongoing exercise by the Judiciary. It is demand driven, but is also subject to the availability of funds. For the courts in Luampa Parliamentary constituency, the process to recruit additional local court magistrates has been initiated by the provincial local courts officer and proposed candidates will be considered by the Judicial Service Commission in the course of the year.

I thank you, Madam Speaker.

_________{mospagebreak}

MOTIONS

BUDGET 2009

(Debate resumed)

The Deputy Minister of Sport, Youth and Child Development (Ms Cifire): Madam Speaker, allow me to quote Hon. Syakalima whom I have great respect for in terms of intellect.

Madam Speaker, when Hon. Syakalima contributed to the debate on the Motion he said and I quote  “as Government, for …

Mr D Mwila: On a point of order, Madam Speaker.

Ms Cifire: Iwe na iwe!

Laughter

Ms Cifire: Madam Speaker, he said for a journey of a thousand kilometres, we had done five kilometres …

Mr D Mwila: On a point of order, Madam Speaker.

Ms Cifire: Madam Speaker, for an eminent scholar like Hon. Syakalima, this is not an empty statement but one that does attest to the fact that Government is on course with its development programme and with the vision that it has given to the people of Zambia. It answers the question as to whether we are able to overcome our problems and the answer is, ‘yes we can.’

Hon. Members: Hear, hear!

Mr D Mwila: On a point of order, Madam Speaker.

Madam Deputy Speaker: Order! The Chair is following the debate and the House has been guided. The Chair cannot see or hear anything that goes against procedure. What the Chair is talking about right now is that all hon. Members know what constitutes a point of order but since the hon. Member has insisted, I hope his point of order is on procedure.

Mr D Mwila: Madam Speaker, I rise on a very serious point of order. Is the hon. Minister of Education in order to keep quiet over the two week strike by the teachers in Luapula Province over none payment of their hardship allowance which was introduced in April last year. Our children have not being going to school. I need your serious ruling.

Madam Deputy Speaker: In appreciating that point of order, I hope the House does also appreciate that the Chair does not have to rule on every point of order.

Will the hon. Deputy Minister continue, please?

Hon. Members: Hear, hear!

Ms Cifire: Madam Speaker, Hon. Syakalima agrees with us that we have a vision for this country. We are on course with the stimulus package that we have come up with for the people of Zambia which promises to bring about development in the country’s infrastructure, health, education and sports facilities as well as attend to gender issues.

Madam Speaker, speaking on sport, I want to state that we as a nation have found an alternative to football. We have been losing in football but have kept winning in boxing which has become a popular sport.

Hon. Members: Hear, hear!

Mr V Mwale: Esther Mumbi Phiri!

Ms Cifire: In fact, Madam Speaker, it has proved that our gender policy is working as we can see that we have more females than men attaining success in this sport.

Mr V Mwale: Mumbi!

Laughter

Ms Cifire: Apart from Esther and Mable, we have also started seeing potential in the House …

Mr V Mwale: Mumbi!

Laughter

Madam Deputy Speaker: Order!

Laughter

Madam Deputy Speaker: Order! The hon. Member will not debate unparliamentary issues and make them parliamentary. Will the hon. Deputy Minister continue but avoid using that route.

Laughter

Ms Cifire: Madam Speaker, on a serious note, I will take up an advisory role as alangizi to female sports persons.

Madam Speaker, finally, I want to pay special tribute to the hon. Member for Lubansenshi (Mr Chota) whom while demonstrating how the hardworking the hon. Minister of Works and Supply gets on site did not realise that he was actually practicing the ngoma dance.

Laughter

Ms Cifire: In this vein, I have appointed him leader of the Impi …

Madam Deputy Speaker: Order! That appointment is not ratified by this august House, and therefore that information is not needed here. Will the hon. Deputy Minister continue, please?

Laughter

Ms Cifire: Madam Speaker, I would like to remind the House that the Ncwa’la ceremony is taking place next weekend.

I thank you, Madam Speaker.

The Minister of Education (Professor Lungwangwa): Madam Speaker, I am most grateful for the opportunity to add my voice to the Motion of the 2009 Budget. Allow me, Madam Speaker, to join all those well meaning hon. Members who without hesitation or reservations congratulated the hon. Minister of Finance and National Planning, Dr Musokotwane who is the hon. Minister behind this Budget and one of the few accomplished economists with impeccable credentials that are internationally acclaimed.

Hon. Members: Hear, hear!

Professor Lungwangwa: Madam Speaker, Dr Musokotwane is not an ordinary economist. He is an economist with a PHD in economics …

Hon. Government Members:  Hear, hear!

Professor Lungwangwa: … and a specialisation in monetary economics. A PHD is the epitome of …

Mr Mukanga interjected.

Professor Lungwangwa: … epistemology especially as it relates to the method of enquiry, validity, scope and the distinction between justified belief and opinion.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: Madam Speaker, Zambia is therefore, better served to have this rare son of the soil taking charge of the economic affairs of this country taking up the position of Minister of Finance and National Planning.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: Madam Speaker, the Motion before the House should challenge all of us to reflect on what is in national interest in the face of the global economic crisis. Our debate should not be parochial or dictated predominantly by subjective emotionalism.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: Madam Speaker, we cannot develop this nation on the whims of our narrow political sentimentalism.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: As national leaders facing the challenge of national survival, we must rise above partisan considerations, think and act in terms of what is in national interest.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: Like all other nations in the world, our nation is facing a great threat of a global magnitude which is the global economic crisis. This crisis is not of our own making, but being members of the global community we are caught up in it. Our approach to this threat must be sober, serious and dictated by patriotism, …

Madam Deputy Speaker: Order!

 Business was suspended from 1610 hours until 1630 hours.

[MADAM DEPUTY SPEAKER in the Chair]

Professor Lungwangwa: Madam Speaker, before we went for break, I was saying … unity and national survival should come first in everything we say and do.

Madam Speaker, as national leaders, we must discuss the 2009 budget from an informed understanding of the implications of the global economic crunch on our country in the short, medium and long term. The emerging understanding of the global economic crisis is that, while developed countries are experiencing sharp contradictions, households in developing countries are much more vulnerable and are likely to experience acute negative consequences in the short and medium term.

Madam Speaker, the global economic crisis is exposing households in developing countries to increased risk of poverty and hardship. Almost 40 per cent of developing countries and Zambia is in this group are highly exposed to the poverty effects of the crisis. Countries where there are higher proportions of poor households have larger shares of the population that will be vulnerable to the shocks of the global economic crisis. The poor will be hit hardest.

Madam Speaker, the time to critically come out with strategies and plans which might help in mitigating the impact of the global crisis on vulnerable groups of our people is now. The Budget has afforded us an opportunity to do so. However, to do that we need to understand what the global economic crisis is.

Madam Speaker, the effects of the global economic crisis on the poorest countries will be slower export growth, reduced remittances, and lower commodity prices. Countries that depend on commodity exports will experience reduced incomes. The crisis may also lead to a reduction in private investment flows, thus making weak economies even less able to cope with internal vulnerabilities and development needs.

Madam Speaker, expert advice that is emerging from those that are critically following the global economic crisis is that governments in high risk countries like Zambia should aim at investment support that ensures continued, and if possible, expanded delivery of core services like education, health and basic infrastructure and wherever possible to reinforce and improve access to safety net programmes like public employment, community and social welfare development. Protection of the great majority of the households that will be affected by the global economic crisis will depend on the ability of a government to cope with the fallout and to finance programmes that create jobs, ensure the delivery of core services and provide safety nets.

Madam Speaker, a critical factor in containing the effects of the global economic crisis is the country’s institutional capacity to implement programmes aimed at mitigating the impact of the crisis and avoiding delays in long term investments upon which economic recovery and long term development depend.

Madam Speaker, lessons from an earlier crisis point to the importance of safeguarding investment in long term development projects. Policies have to be established which will protect long term investment in infrastructure and social development, avoiding unnecessary cuts in essential public expenditure and restoring high quality economic growth over the long term.

Madam Speaker, it is clear from the analysis of the global economic crunch which I have just outlined that we have the challenging task as a nation to pay special attention to this crisis. Those with critical analytical minds have been quick to note that the 2009 Budget has been framed within the context of the global economic crisis.

Hon. Government Members: Hear, hear!

Mr Kambwili: Question!

Professor Lungwangwa: The Budget contains vital strategies for mitigating the impact of the global economic crisis on our country in the short, medium and long term. This is the reason why the Budget has received positive comments from all those who understand the state of the world economy today.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: Madam Speaker, the Government has acknowledged the existence of the global economic crisis and the impact it is likely to have on our country. The hon. Minister of Finance and National Planning put the Government’s stand very clearly in the following words:

“As a result of the weakening global demand, the global economy will beyond doubt, negatively impact our economy and constrain our efforts to reduce poverty. Our export prospects will be affected and job losses may be inevitable.”

This is the reality of the world today which we cannot run away from as national leaders. The hon. Minister of Finance and National Planning has presented a budget that invites all of us to reflect on this international reality and its implications for our country. We must pay attention to the global economic trends.

Madam Speaker, the 2009 Budget is not about who makes the loudest speech and can be heard far and wide. Neither is it about looking for areas upon which to fix the Government. Rather, this Budget is a call for critical reflection and strategic thinking about what we can do as a nation to protect ourselves against the onslaught of the global economic crisis. The Budget has been realigned in that direction.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: This is why it has been described as an excellent budget.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: The key strategic objectives of the Budget are:

 (a) Protection of the core social sectors: The Budget has paid attention to the core social sectors which are pertinent in improving the quality of life of the greater majority of our people and these are education, health, community welfare and providing adequate water and sanitation.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: The K577.9 billion for infrastructure development within the K2.6 trillion allocated to the education sector will create more opportunities for children to go to school. Putting more children in school by creating more school places. This is a sound strategic response to the world economic crisis. We should understand the K214.4 billion which has been allocated to the National Rural and Urban Water Supply Project in the same context of efforts by this Government aimed at protecting the basic needs or our people. The same goes for the allocation of K1,823.4 billion to health and K374.2 billion to social protection.

(b) Achieving economic growth: The Budget acknowledges the fact that if we are to get out of the economic crisis, our economy has to grow. Growing the economy is therefore a necessary imperative. It is in this vein that K3,021.2 billion or 19.8 pre cent of the Budget has gone into activities and sectors that will impact positively on economic growth.

Madam Speaker, we must all understand that recovery from the global economic crisis dictates, as a matter of necessity, that measures be taken to grow the economy. In a mono-economy like ours, economic growth entails giving attention to diversification of the economy from mining to other sectors like agriculture, manufacturing and tourism.

Madam Speaker, providing funding to the Multi Facility Economic Zones (MFEZ), farming blocks like Nansanga and the development of the tourism sector should be understood as the Government’s strategic responses aimed at making the economy grow. This is how jobs and wealth will be generated. Criticism of the MFEZ and the farming blocks is unwarranted and reflects lack of understanding of what is strategically important for the country and our people.

(c) Making the country economically competitive: One of the problems we face as a country is the high cost of doing business. The Budget addresses this problem by emphasising the need for infrastructure development especially construction and rehabilitation of roads, railways and airports. Raising the country’s competitive level will help in attracting private investment. The struggle for capital, especially on the international capital market, requires that we make our country the first choice destination for investment. The Budget has done this by outlining incentives to investors, including scrapping off of the windfall tax in the mining sector.

Hon. Government Members: Hear, hear!

Mr Kambwili: Question!

Professor Lungwangwa: (c) Institutional capacity building: The Budget aims at building the capacity of the local councils through programmes for enhancing human, technical and financial capacities in order to enable them effectively deliver quality and responsive services. Institutional capacity building is important in achieving an all inclusive economic restructuring reform process which will stimulate broad based economic development.

Madam Speaker, all those who understand this Budget have commended it as a forward looking budget.

Hon. Government Members: Hear, hear!

Professor Lungwangwa: It fits very well in the nation’s short, medium and long term development goals. The Budget stands squarely against the global economic crisis as a strategic response to it.

Mr Kambwili: Question!

Professor Lungwangwa: Each part of the Budget fits in so well that it is not possible to justify cuts to any of its parts.

Madam Speaker, there have calls for a raise in the Constituency Development Fund (CDF) allocation. As appealing as such a demand might be, it is not realistic under the current budgetary provisions.

Mr Kambwili: Question!

Interruptions

Professor Lungwangwa: Efforts must be made by each one of us to ensure that we achieve the targeted economy growth. This is our route to increased revenue which, in turn, will raise the CDF to the levels where we would like it to be.

Madam Speaker, those who understand the economic realities of our time should in fact strongly applaud Hon. Dr. Situmbeko Musokotwane and tell him that he has done well. Let us get down to work and operationalise the Budget. This is what we should do in this House without any iota of hesitation.

Madam Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr Kambwili: Go back and teach at the university.

Interruptions

Madam Deputy Speaker: Order! Order!

The Minister of Lands (Mr Mukuma): Madam Speaker, I wish to thank you for affording me this opportunity to contribute to the Motion on the Floor.

Firstly, I wish to congratulate His Excellency the President, Mr Rupiah Bwezani Banda, for winning the 30th October, 2008, Presidential by-election.

Mr Kambwili: Question!

Interruptions

Mr Mukuma: His victory has brought great pride not only to the winning party, Movement for Multi-party Democracy (MMD), but to the nation as a whole because the election was free, fair, transparent and highly commended by external observers. His Excellency the President, Mr Banda, is a very experienced politician and administrator. President Banda’s capacity to rule this country should not be doubted at all.

Hon. Government Members: Hear, hear!

Mr Mukuma: All he needs is support of all well meaning Zambians for the country to move forward.

Madam Speaker, I also wish to congratulate His Honour the Vice-President and Minister of Justice and Leader of Government Business of this august House, Mr George Kunda, SC, on his appointments.

Interruptions

Madam Deputy Speaker: Order! The House is not listening. Can the House listen to the hon. Minister.

Can you continue.

Mr Mukuma: I have no doubt that he will perform very well in his new position and I wish him well.

Hon. Government Members: Hear, hear!

Mr Mukuma: Madam Speaker, allow me also to congratulate Mr V.J. Mwaanga, MP for bouncing back as Chief Whip.

Hon. Government Members: Hear, hear!

Mr Mukuma: His presence and participation in Parliament is always appreciated by the majority of us in this august House. He is warmly welcomed back into Parliament.

Madam Speaker, let me now join other speakers who have congratulated Hon. Dr Situmbeko Musokotwane, MP, Minister of Finance and National Planning for a well presented national Budget for 2009.

Madam Speaker, I find it extremely unfair for some hon. Members of this august House to say that the 2009 Budget contains nothing and that it is hollow.

Madam Speaker, it is important to acknowledge the positive things that are reflected in the Budget and to deal with issues in a non-partisan approach for the sake of mother Zambia. The speech carried a clear and well focused message of wealth creation and poverty reduction anchored on diversification of the economy. The key sectors of which require diversification are agriculture, tourism, manufacturing, construction, transport and energy.

Madam Speaker, the theme ‘Enhancing Growth through Competitiveness and Diversification’ is well articulated in the Budget. The policy measures and supporting expenditure proposals for 2009 clearly respond to the theme’s message.

As a nation, we cannot afford not to diversify. The current happenings on the Copperbelt Province are enough indicators that diversification is imperative. Metal mining can no longer be solely relied upon to provide the needed economic growth. The budget’s emphasis on diversification is extremely welcome and should be supported by all well meaning Zambians. As Zambians, we need to rise to the challenge and spearhead the diversification plan so as to increase our participation in the country’s economic development.

Madam Speaker, as the Government facilitates the development of the northern tourism circuit and tourism in general, Zambians should not adopt a negative attitude towards foreign investors and shy away from partnering with them. Partnerships are essential for Zambians in order for them to pick up entrepreneurial skills from investors who may have been in the business longer. The Government will continue to play its part by investing in these areas to create an enabling environment for business. We need both local and foreign investors in order to accelerate growth in this sector.

Madam Speaker, in the area of agriculture, I commend the Ministry of Finance and National Planning for increasing the resource allocation to this sector. The call by His Excellency the President in his opening speech of this session to continue with emphasis on increased and sustainable food security at all levels should be heeded because it is through the development of agriculture that we will be able to improve the livelihoods of the majority of our people.

Madam Speaker, this Government has always attached great importance to agriculture and through progressive policies and development programmes, the nation is now able to have surplus food after a normal harvest. It is therefore, not true to say that MMD policies have failed because the nation is now able to feed itself which was not the case before this Government came into power. For drought prone areas, let us encourage people in these areas to move away from maize and to concentrate on growing crops like cassava, millet, sorghum and rice. These disaster prone areas always receive these natural disasters which are not friendly to maize growing. The crops that I have just mentioned have been grown without fertiliser before and could still be produced without it so as to   reduce heavy dependence on fertiliser support and improve food security in the disaster prone areas.

For the diversification strategy to succeed, it will require all hon. Members of Parliament, civil society organisations (CSOs), churches and the people in general working together with the Government. No one should stand aloof and fold their hands and say the Government should be only institution working at bringing development to this country. This is the time we need every Zambian with progressive ideas to come forward.

Madam Speaker, some hon. Members on your left have criticised the provision in this year’s Budget to zero rate tax on agricultural equipment on the grounds that it will only benefit commercial farmers with resources. This criticism is not justified because the needs of small-scale farmers have also been addressed through increased funding to the cattle restocking programmes which will enable them to use animal power to improve productivity. The fact is that commercial farmers are equally playing an important role in improving food security in this country and should not completely be abandoned. They too, need Government support to enable them produce export crops and compete effectively on the world market.

Madam Speaker, the Government is mindful that most of our young people lack skills. Even if jobs were created, some of them may not be employed because they do not have relevant skills. In view of this, the Government is determined to ensure that skills development goes hand in hand with its efforts to create jobs. The Government has put in place measures to make this a reality. It is gratifying to note that the private sector, CSOs and community based organisations (CBOs) are supplementing Government efforts in skills development. This is how it should be. By having educated and skilled youths, our country will be guaranteed of a better future.

Hon. Government Members: Hear, hear!

Mr Mukuma: Madam Speaker, in our diversification efforts, it is important that our nationals take advantage of the many measures and institutions that have been put in place. An example is the CEEC.

Madam Speaker, the CEEC is there to respond to the needs of Zambians who want to actively participate in the economy. Apart from providing financial resources for business ventures, this measure will improve the equitable distribution of wealth by increasing the number of people who are contributing to the growth of the economy. It therefore deserves to be supported by all Zambians.

Hon. Government Members: Hear, hear!

Mr Mukuma: Madam Speaker, I find it strange that some people are criticising the setting up of MFEZ. This is misplaced criticism. The hon. Members of this august House must know that these zones are meant to open up areas for investment. The zones will have all the needed infrastructure so that any investors, local or foreign, can easily set up business ventures. It is, therefore, not true to say that only Chinese or foreign investors will benefit from the K30 billion set aside for development of these zones. These zones are for all the people. 
RR Madam Speaker, Zambia is pursuing an open door policy whereby investors from all over the world are free to come and invest in this country. At present, there is a good response from investors from the eastern part of the world. Let us take advantage of them instead of being hostile towards them.

Madam Speaker, as we deal with the effects of the global financial crisis, it is time that attitudes of some Zambians changed. Many of our compatriots are in the habit of frustrating Government’s good efforts, especially those of improving infrastructure countrywide. Examples include the vandalising of road infrastructure, poor workmanship and abandoning projects. Such occurrences clearly show that Zambians consider their involvement in various developmental programmes as merely an opportunity to make money and not to contribute to the development of this country. This attitude is dangerous and if not changed, will block the accelerated growth of our economy. As hon. Members, there is need to participate in sensitising our communities against such acts. It is also important as leaders to accept and appreciate the collective responsibility we have of developing this nation. Let us stop shifting blame on Government for our collective failures.

Madam Speaker, this year as His Excellency the President said in his opening speech that this is a challenging year. We, as Zambians, in general and hon. Members of Parliament in particular need to collectively work together. We have only one country which we have to cherish. It is only when we work together for a common purpose that we can come up with a strategy that will enable us as a nation to overcome the negative impact of the global financial meltdown affecting major economic powers in the western world.

Madam Speaker, I am aware that all efforts to develop this country require land. Therefore, there is need to distribute land efficiently and in a transparent manner. I wish to inform this august House that the Ministry of Lands is already implementing programmes aimed at making land available to all developers, both local and foreign as and when it is required. To this end, the ministry has established a customer service centre and an integrity committee to enhance accountability and transparency in the allocation of land. To improve land availability, the ministry in conjunction with the Ministry of Agriculture and Co-operatives and other relative ministries has embarked on the creation of land banks and farm blocks throughout the country.

Interruptions

Mr Mukuma: These are being created with a view of promoting commercial farming in Zambia and increasing the production of export crops.

Madam Deputy Speaker: Order! Can I have order in the House?

May he continue, please.

Mr Mukuma: I am aware, Madam Speaker, that most of the land is under the control of our traditional leaders and that there will be need for my ministry to negotiate with the chiefs to release land for development. In view of this, I wish to implore the hon. Members of this august House to assist the Ministry of Lands to obtain land from the chiefs in their respective areas for development. It is the only way socio-economic development can occur in our rural areas.

Madam, there have been allegations in this House that my ministry is giving preference to foreigners in land allocation. This is far from the truth.

Hon. Member: Question!

Mr Mukuma: Since, as a nation, our priority is job creation and poverty reduction, preference is also given to investors with money to invest and create wealth and employment. Currently, there are more foreign investors with money than local investors and we are giving them land to invest their money in line with our national aspirations and development priorities. This situation should not be interpreted that the ministry is favouring foreign investors in land allocation. It is, therefore, important for hon. Members of this august House to join the Government to explain the importance of foreign investors in Zambia rather than criticising them for bringing money into Zambia.

Hon. Government Members: Hear, hear!

Mr Mukuma: Madam Speaker, I wish to conclude by stating that unlike what the opposition are saying, the MMD Government has achieved a lot for this country and under the able leadership of His Excellency the President, Mr Rupiah Bwezani Banda, we will continue to build on what we have already achieved.

Madam Speaker, I thank you.

Hon. Government Members: Hear, hear!

Ms Masiye (Mufulira): Thank you, Madam Speaker, for giving the voice of Mufulira an opportunity to debate.

Hon. PF Member: Hear, hear!

Ms Masiye: I say the voice of Mufulira because I represent the people of Mufulira Constituency and so as I stand here to speak, Mufulira Constituency is speaking because I am echoing what they tell me to come and inform you.

Madam Speaker, this afternoon, before I came to the House, I deliberately phoned the Mufulira Constituency Office to ask the constituency assistant to phone all the residential development committees (RDCs) chairmen and vice-chairmen to listen to the radio today because their voice today is being echoed. As I speak now, Mufulira Constituency is listening.

Hon. PF Members: Hear, hear!

Ms Masiye: In case you have forgotten, RDCs are committees that are selected to addresses the concerns of people who stay in zones that are delimitated by the councils in specific area.

Therefore, RDCs know no PF, MMD and UPND but know Zambia as their country and in this particular case the ones in Mufulira know Mufulira Constituency as their residence.

Madam Speaker, the issue that touched me most in the Budget Speech presented by the hon. Minister of Finance and National Planning is on Page 1, paragraph 5, and I quote:

“This economy will be one that provides ample opportunity for every citizen to realise their potential and fully provide for their families. I see all our citizens, in all corners of our country, waking up each morning well nourished, in decent housing, with access to clean water and sanitation. I see our citizens having paved roads that do not flood each rainy season, reliable and renewable energy and high quality health and education services that are within easy reach.”

Paragraph 8 also says, and I quote:

“Sir, just as we expect citizens to work hard to drive our economy forward, they expect Government to play its role in creating a conducive and competitive environment for wealth creation and poverty reduction in every part of our country.”

This includes Mufulira Constituency.

Madam Speaker, in one of the legendary ancient books titled Hebakin, there is an old adage which says: “Where there is no vision, people perish”.

Hon. PF Members: Hear, hear!

Ms Masiye: Zambia is blessed today because it has a hon. Minister of Finance and National Planning with a vision.

Hon. PF Members: Hear, hear!

Ms Masiye: The desire to share in the implementation of such passion is what prompted me to join politics to be of service to even just a fraction of Zambians particularly those living in Mufulira Constituency.

Madam Speaker, Zambia is pursuing an open door policy whereby investors from all over the world are free to come and invest in this country. At present, there is a good response from investors from the eastern part of the world. Let us take advantage of them instead of being hostile towards them.

Madam Speaker, as we deal with the effects of the global financial crisis, it is time that attitudes of some Zambians changed. Many of our compatriots are in the habit of frustrating Government’s good efforts, especially those of improving infrastructure countrywide. Examples include the vandalising of road infrastructure, poor workmanship and abandoning projects. Such occurrences clearly show that Zambians consider their involvement in various developmental programmes as merely an opportunity to make money and not to contribute to the development of this country. This attitude is dangerous and if not changed, will block the accelerated growth of our economy. As hon. Members, there is need to participate in sensitising our communities against such acts. It is also important as leaders to accept and appreciate the collective responsibility we have of developing this nation. Let us stop shifting blame on Government for our collective failures.

Madam Speaker, this year as His Excellency the President said in his opening speech that this is a challenging year. We, as Zambians, in general and hon. Members of Parliament in particular need to collectively work together. We have only one country which we have to cherish. It is only when we work together for a common purpose that we can come up with a strategy that will enable us as a nation to overcome the negative impact of the global financial meltdown affecting major economic powers in the western world.

Madam Speaker, I am aware that all efforts to develop this country require land. Therefore, there is need to distribute land efficiently and in a transparent manner. I wish to inform this august House that the Ministry of Lands is already implementing programmes aimed at making land available to all developers, both local and foreign as and when it is required. To this end, the ministry has established a customer service centre and an integrity committee to enhance accountability and transparency in the allocation of land. To improve land availability, the ministry in conjunction with the Ministry of Agriculture and Co-operatives and other relative ministries has embarked on the creation of land banks and farm blocks throughout the country.

Interruptions

Mr Mukuma: These are being created with a view of promoting commercial farming in Zambia and increasing the production of export crops.

Madam Deputy Speaker: Order! Can I have order in the House?

May he continue, please.

Mr Mukuma: I am aware, Madam Speaker, that most of the land is under the control of our traditional leaders and that there will be need for my ministry to negotiate with the chiefs to release land for development. In view of this, I wish to implore the hon. Members of this august House to assist the Ministry of Lands to obtain land from the chiefs in their respective areas for development. It is the only way socio-economic development can occur in our rural areas.

Madam, there have been allegations in this House that my ministry is giving preference to foreigners in land allocation. This is far from the truth.

Hon. Member: Question!

Mr Mukuma: Since, as a nation, our priority is job creation and poverty reduction, preference is also given to investors with money to invest and create wealth and employment. Currently, there are more foreign investors with money than local investors and we are giving them land to invest their money in line with our national aspirations and development priorities. This situation should not be interpreted that the ministry is favouring foreign investors in land allocation. It is, therefore, important for hon. Members of this august House to join the Government to explain the importance of foreign investors in Zambia rather than criticising them for bringing money into Zambia.

Hon. Government Members: Hear, hear!

Mr Mukuma: Madam Speaker, I wish to conclude by stating that unlike what the opposition are saying, the MMD Government has achieved a lot for this country and under the able leadership of His Excellency the President, Mr Rupiah Bwezani Banda, we will continue to build on what we have already achieved.

Madam Speaker, I thank you.

Hon. Government Members: Hear, hear!

Ms Masiye (Mufulira): Thank you, Madam Speaker, for giving the voice of Mufulira an opportunity to debate.

Hon. PF Member: Hear, hear!

Ms Masiye: I say the voice of Mufulira because I represent the people of Mufulira Constituency and so as I stand here to speak, Mufulira Constituency is speaking because I am echoing what they tell me to come and inform you.

Madam Speaker, this afternoon, before I came to the House, I deliberately phoned the Mufulira Constituency Office to ask the constituency assistant to phone all the residential development committees (RDCs) chairmen and vice-chairmen to listen to the radio today because their voice today is being echoed. As I speak now, Mufulira Constituency is listening.

Hon. PF Members: Hear, hear!

Ms Masiye: In case you have forgotten, RDCs are committees that are selected to addresses the concerns of people who stay in zones that are delimitated by the councils in specific area.

Therefore, RDCs know no PF, MMD and UPND but know Zambia as their country and in this particular case the ones in Mufulira know Mufulira Constituency as their residence.

Madam Speaker, the issue that touched me most in the Budget Speech presented by the hon. Minister of Finance and National Planning is on Page 1, paragraph 5, and I quote:

“This economy will be one that provides ample opportunity for every citizen to realise their potential and fully provide for their families. I see all our citizens, in all corners of our country, waking up each morning well nourished, in decent housing, with access to clean water and sanitation. I see our citizens having paved roads that do not flood each rainy season, reliable and renewable energy and high quality health and education services that are within easy reach.”

Paragraph 8 also says, and I quote:

“Sir, just as we expect citizens to work hard to drive our economy forward, they expect Government to play its role in creating a conducive and competitive environment for wealth creation and poverty reduction in every part of our country.”

This includes Mufulira Constituency.

Madam Speaker, in one of the legendary ancient books titled Hebakin, there is an old adage which says: “Where there is no vision, people perish”.

Hon. PF Members: Hear, hear!

Ms Masiye: Zambia is blessed today because it has a hon. Minister of Finance and National Planning with a vision.

Hon. PF Members: Hear, hear!

Ms Masiye: The desire to share in the implementation of such passion is what prompted me to join politics to be of service to even just a fraction of Zambians particularly those living in Mufulira Constituency.

Madam Speaker, what is vision? The Longman Active Study Dictionary gives one of the definitions of the word vision as “the knowledge and imagination that is needed in planning for the future with a clear purpose.” It even gives an example “We need a leader with a vision.”

Hon. PF Members: Hear, hear!

Ms Masiye: Madam Speaker, Zambia has seen leaders with vision before. One of our legendary former presidents claimed that he had a vision where he saw light at the end of the tunnel. Unfortunately, he was the only privileged person who used to see that light at the end of the tunnel.

Dr Chishimba: Hear, hear!

Ms Masiye: This vision was never realised as clouds grew darker over Zambia and change became inevitable. The story is best told by the MMD as it was the events which occurred during that period which ushered them into power.

Madam Speaker, the dark cloud is still there.

Hon. Opposition Members: Hear, hear!

Ms Masiye: Madam Speaker, in the recent past, there was a bit of light, but that light is fading. If the Executive is not careful, the light will keep growing darker until it becomes inevitable for them to give way to people who have a better vision.

Hon. Opposition Members: Hear, hear!

Hon. PF Member: Ebanakashi aba!

Ms Masiye: Madam Speaker, a special, gracious and inspiring vision will have no effect if it is not shared.

Dr Chishimba: Hear, hear!

Ms Masiye: I mean shared, not only in the Budget Speech, but like the relay torch in the olympic games is given from one participant to another until its finally lit at the end of the race. The torch which was lit last at the previous olympic games is always carried to the next ones. That is real vision. That is the vision that stays.

Dr Chishimba: Hear, hear!

Ms Masiye: Madam Speaker, I urge the hon. Minister of Finance and National Planning to carry his torch from one hon. Minister to another and from ministry to ministry because seeing from the debate on the Floor of this House, not all the ministers carry his passion.

Dr Chishimba: Hear, hear!

Ms Masiye: Madam Speaker, Martin Luther King Jr, carried his torch from generation to another, from one black person to another and from one white person to another. His dream was finally realised by Mr Barak Obama becoming the first African-American President of the United States of America.

Hon. Member: Change!

Ms Masiye: Mind you, the people who voted for Mr Obama within his party and across the USA, were not just blacks, otherwise, he would not have made it. I want to believe that in some cases, black supporters even failed him.

The message I am trying to tell you, hon. colleagues, is that not every person that smiles at you and calls you a colleague because you are privileged now, is really supporting you. Your real support might just lie on the left side of the House for you to successfully implement and see your vision bear results.

Hon. Opposition Members: Hear, hear!

Ms Masiye: Madam Speaker, when people criticise and give advise from the left side of the House, they are ridiculed. People pride in their authority and thus loose their vision. They do not know their purpose in Government.

Madam Speaker, for this Government to succeed, given the vision which was brought out by the hon. Minister of Finance and National Planning, all Zambians regardless of their political affiliation and whoever they choose to support at any given time, should be treated the same. The example must start within this House.

Dr Chishimba: Hear, hear!

Mr V. Mwale: Ndimwe mumenyana kaili.

Ms Masiye: We ought to learn to respect ourselves regardless of our varying opinions, outlook on life and political stance. If we do not do this, we are not worth being here because we supposed to lead by example.

Dr Chishimba: Hear, hear!

Ms Masiye: Madam Speaker, last week, this House listened to a debate where an hon. Minister went out of his way to politic instead of confining his debate to his ministry which is very critical and at the centre of development in this country. He went out of his way to relegate, and I will repeat the word I used, relegate or better still to reduce himself to the level of a cadre. He limited his responsibilities to only those that he has for his political party. That is running away from responsibilities bestowed upon him by this country.

Dr Chishimba: Tell him!

Ms Masiye: Madam Speaker I would like to urge the hon. Ministers to just concentrate on doing their jobs. I am sure all of them know your job descriptions. You all know the expectations of the people that voted for you. In case you were not voted for, you know the expectations of your appointing authority.

Hon. PF Members: Hear, hear!

Ms Masiye: Madam Speaker, in case there was no orientation of the hon. Ministers, I am urging whoever is responsible for that exercise to revisit that task. The hon. Ministers should take a leaf from the chief executives of companies and realise the value that is in having a portfolio of high importance.

Dr Chishimba: Hear, hear!

Ms Masiye: It is a huge responsibility to be an hon. Minister. It is a big position. It is so sad that the value of ministerial offices have been reduced to just the privileges that come with the portfolios.

Madam Speaker, during a workshop yesterday, we saw the hon. Minister of Works and Supply intimidate the hon. Members of Parliament that if they do not make roads in their constituencies, bakasebana.

Dr Chishimba: Shame!

Ms Masiye: Madam Speaker, I was appalled. I said tukasebana shani? How are we going to be ashamed? The responsibility of implementing the Budget is in the hands of the different ministries. The civil servants and technocrats are at the ministries. How dare you tell the innocent hon. Opposition Members of Parliament to do your job for you?

Hon. Opposition Members: Hear, hear!

Ms Masiye: When we tell you to increase the CDF, you cry foul.

Hon. Opposition Member: Bwekeshapo!

Ms Masiye: That is because the CDF has proven useful and is the only fund over which the hon. Members of Parliament have authority to implement programmes.

Hon. Opposition Members: Hear, hear!

Ms Masiye: Madam Speaker, as though that was not enough, I looked down in anguish, when I listened to the hon. Deputy Minister of Sport, Youth and Child Development turn this House into a comedy. She talked of Nc’wala, Impi and a Chilufya who lost a boxing match. A female hon. Member of Parliament rejoicing over other women fighting is a shame.

Hon. Opposition Members: Hear, hear!

Hon. PF Members: Bwekeshapo!

Ms Masiye: Regardless of political affiliation, …

Hon. Opposition Member: Bamulasa!

Madam Deputy Speaker: Order! The hon. Member debating should be careful not to tread on issues where a ruling was passed. The word ‘shame’ in the context you have used it has been ruled out of order.

Ms Masiye: Madam Speaker, I thank you for your guidance. I withdraw the word shame and replace it with ‘unfortunate’.

Laughter

Ms Masiye: Madam Speaker, when hon. Members on your left hand side touch thorny issues on the Floor of this House, the hon. Ministers do not hesitate to say that why did you not come to my office? You could have asked me to walk out and we could have debated and so on. That is because they do not want the press to report on them or the listeners on the airwaves to judge them for what they really are.

Hon. Opposition Members: Hear, hear!

Ms Masiye: Madam Speaker, I will say this now …

Hon. Members: Say it

Ms Masiye: … and I will say it in the old English. I am privileged to have read a bit of Victorian English. “Hear ye thou, thou august House, hear ye now you people of Mufulira Constituency, for now I give my testimony”.

Mr Lubinda: Osakamba chizungu cha so sibanvela.

Laughter

Hon. PF Member: Ebanakashi aba!

Ms Masiye: Last year, in October, 2008, I wrote a letter to the Minister of Health requesting for things that we did not have at the Kamuchanga Hospital, the main hospital in the Constituency. I requested on behalf of the people of Mufulira who had complained and written to me through their resident development committees (RDCs), which represent the MMD, PF, UPND and others with no party affiliation. They have been crying from time immemorial. They spoke to me, and I spoke to the hon. Minister of the Ministry of Health at that time. I am still speaking on the Floor of this House, people of Mufulira Constituency, I hope you are listening. Hear thou me, I am telling you, now.

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

Ms Masiye: We requested for a laundry machine and a generator because there is an electricity problem in Mufulira. Five months down the line, I have not received a response from the Ministry.
 
Madam Speaker, I also wrote to the hon. Minister of Education requesting a very honourable thing. We lost a State President and in Mufulira, there is an area called Kansuswa and most of you know that is where the late President did his primary education. The request was very simple. Shall we rename Kansuswa Basic School after our late beloved President Levy Patrick Mwanawasa and do something to turn it into a special monument by which we can remember him? Hats off to him, may his soul rest in peace. Madam Speaker, I have not received a response.

Madam Speaker, Mufulira Constituency has never had a high school since independence. We requested for that, but we have not had a response to date. Earlier, I phoned my personal assistant and requested him to go the post office, hoping that per adventure we could have some luck. I received some mail today, this morning to be specific, and I thought there was a response for us, the people of Mufulira. Alas, there was nothing. I made that request five months ago.

Madam Speaker, I wrote to the hon. Minister of Home Affairs requesting for a paltry K350,000 to help us boost the electrification of Sikalangwe Police Camp. To date, we have not received an answer. My group and I committed 50 per cent of last year’s CDF to a water reticulation project in Sikalangwe Camp since we could not afford to give all our CDF to Sikalangwe Camp.The hon. Minister of Local Government and Housing said he could not help us out and that we were irresponsible because we did not put our CDF into projects that were viable. Luckily after some time we managed to do things ourselves. The reason why Sikalangwe Police Camp in Mufulira has water today is because we the people through the CDF have taken it there.

Madam Speaker, we requested for a market and water reticulation projects in some areas in Mufulira from the Ministry of Local Government and Housing. The only thing I ever got was a carbon copy of a letter I wrote to Mulonga Water and Sewerage Company and the reply I received. It has been five months down the line and there has been no further response from the ministry.

Madam Speaker, I spent the CDF wisely, but my concern is that whenever I wrote these letters and carbon copied them to the then Acting President, they never reached him. His ministers never at all bothered to pass on these letters. The question that I ask is, if they cannot give regard to a letter that is carbon copied to their President, Mufulira Parliamentary Constituency, what are you? Are they going to hear you?

Hon. PF Members: No!

Ms Masiye: The CDF I am talking about was shared between two wards. Part of the money was spent on a small school in an area where I have councillors who are members of the MMD and five Patriotic Front (PF) councillors. I did not look at the colour of their chitenges or what positions they have in their party. To me, they are all my people. I represent them with a passion. As a result, I did not care who got the CDF. Take a leaf from me, hon. Ministers.

Hon. PF Members: Hear, hear!

Ms Masiye: Madam Speaker, men of old used to tell tales so that people did not forget. To end my debate, I would like to refer to an ancient kingdom. This is a real story about a kingdom that was led by the wisest king, Solomon.

Mr Muntanga: Amen!

Ms Masiye: When Solomon died, his son Absalom took over.

Interruptions

Madam Deputy Speaker: Order!

Ms Masiye: When Absalom took over, the people of Israel gathered and said, “Son of Solomon, your father gave you huge responsibilities …”

Madam Deputy Speaker: Order! We do not quote the Bible in that manner, otherwise, another one will quote something else.

Ms Masiye: Madam Speaker, I did not say I am going to give a Bible reading. I said …

Madam Deputy Speaker: Order!
Laughter

Madam Deputy Speaker: Order! The Chair is very much aware of what is in the Bible.

Laughter

Madam Deputy Speaker: Can you continue.

Ms Masiye: Madam Speaker, I thank you for your guidance.

The tale talks of leaders who do not listen to the people and concludes by saying that what ever authority is given to them can at some point in time be taken away from them for behaving in an irresponsible manner.

Hon. PF Members: Hear, hear!

Ms Masiye: Some people in the tale even lost precious kingdoms which had as many as twelve tribes and remained with two.

 Hon. PF Members: Hear, hear!

Ms Masiye: Madam Speaker, if this Government is not careful, the responsibility that as given to them on a silver platter may be taken away from them and by the time they wake up, it will be too late.

Dr Chishimba: Amen!

Ms Masiye: Madam Speaker, in conclusion, the vision is very clear, but to achieve this vision, we need right virtues to surround it and then victory will be certain. I say may God bless Zambia and Mufulira Constituency.

Interruptions

Ms Masiye: Brethrens, hear thou me.

Hon. PF Members: Hear, hear!

The Minister of Mines and Minerals Development (Mr M. B. Mwale): Madam Speaker, I thank you for allowing me to contribute to the debate on the Motion of Supply moved by the hon. Minister of Finance and National Planning on 30th January, 2009.  Hon. Minister of Finance and National Planning, your Budget speech was focused and clearly spelt out the Zambia you would like to see. Hon. Minister never mind about those who have negatively debated your speech. In Christian circles, such people are known as dream stealers and in other circles they are called rouble rousers who want to blur your vision.

Hon. Government Members: Hear, hear!

Mr M. B. Mwale: Oh, yes, hon. Minister remain focussed.

Madam Speaker, I am indebted to all hon. Members of the House who have debated the Motion before me in relation to the mining industry. I intend to confine my debate to the following issues:

(a) regulation of the mining industry;

(b) measures to enhance the contribution of the sector to Government revenue; and

(c) resuscitation of underperforming mines.

Madam Speaker, my Ministry is responsible for the regulation of the mining sector. There have been complaints that the nation is not benefiting as much from the sector due to the ineffective regulation governing the sector. Hon. Charles Milupi, unfortunately he is not in the House, reiterated the same point. I want to respond by first highlighting the causes of this perceived poor regulation of the mining sector.

The mining sector has in the post-privatisation era, 2000 to 2008, expanded considerably as indicated by the increase in mining right holders.We have had the following developments:

(a) gemstone licence holders increased from 385 to 772;

(b) small-scale mining licence holders increased from 71 to 401;

(c) prospecting permit holders increased from 55 to 101;

(d) large scale prospecting licence holders increased from 40 to 196; and

(e) large scale mining licence holders increased from 12 to 34.

During the same period Madam Speaker, satisfactory exploration activities led to the acquisition of large scale mining licences and new mines came on stream. These are:

(a) Bwana Mkubwa in Ndola, owned by First Quantum Mining and Operations Limited;

(b) NFC Africa in Chambishi;

(c) Chibuluma Mine, owned by Metorex Group of Companies;

(d) Kansanshi Mining PLC in Solwezi, owned by First Quantum Mining and Operations Limited;

(e) Lumwana Copper Mines in Mwinilunga/Solwezi, owned by Equinox Resources Limited; and

(f) Munali Nickel Mine in Mazabuka, owned by Albidon (Zambia) Limited.

Madam Speaker, in addition, a number of projects have come up, thus clearly showing the levels of investment that have come into our industry after privatisation. These are:

(a) at Nkana and Mufulira Leach Plants were their has been the incorporation of the solvent extraction and electrowining tanks which have since been constructed and commissioned;

(b) Sable Zinc constructed and commissioned a solvent extraction and electrowining tank house in Kabwe for the production of copper and cobalt;

(c) at Konkola Copper Mine (KCM),a new concentrator with the capacity to treat six million tonnes of ore per annum has been commissioned. This is in addition to the development project which is the Konkola Deep Mining Project (KDMP) which we all know is scheduled to come on line early 2010;

(d) at both KCM and Mufulira Copper Mine (MCM), acid plants have been constructed and commissioned to meet the ever growing demand for acid by  leach plants; and

(e) our country’s copper production stands at more than 750,000 tonnes per year following the successful rebuilding project at Mopani, the commissioning of a smelter at Konkola Copper Mine (KCM) at Nchanga and the continued operations of Chambishi Copper Smelter by the Chinese at Chambishi.

All these are large projects that have taken great investments.

  Madam Speaker, against these developments, there is inadequate capacity in my ministry to meet the emerging challenges. This situation is exacerbated by the scarcity of mining related skills in the country at present.
   
 Madam Seaker, the Government under the able leadership of His Excellency, Mr Rupiah Bwezani Banda recognises the many challenges faced by the Ministry. It has set the strengthening of the institutional framework of the ministry as its strategic focus in the Fifth National Development Plan (FNDP). The ministry under my predecessor commenced the following:

(a) updating the Mines and Minerals Act of 1995 which was repealed and replaced by the Mines and Minerals Development Act of 2008; and

(b) rehabilitating and upgrading laboratories so that they can handle ore, concentrates and metal analysis.

Madam, all these measures are in recognition of the need to improve my ministry’s capacity. My ministry will be seeking the support of this House during the evaluation of funds in the Yellow Book so that it can get enough funds to facilitate the recruitment of professional personnel. My ministry requires skilled manpower in order to fill vacant positions which are critical to its operations. Before privatisation, it was easy to police and monitor the industry because all the large scale mines were under Zambia Consolidated Copper Mines Limited (ZCCM), a parastatal. Now that the mines are in private hands, there is need for Government to find better ways to closely and effectively monitor the exploration and mining companies in terms of mining programmes, safety, health, mining practices and declaration of mineral production and exports among others.

Measures to Enhance the Contribution of the Sector to Government Revenue

Madam Speaker, the House may recall that the Mines and Minerals Development Act No. 7 of 2008, Section 106, states that metals can only be exported after a mineral analysis certificate is issued. This is intended to detect the type of metal exported and that it is not under valued. This addresses the concern raised by Hon. Chota and Hon. Chanda over the non-declaration of precious metals and the subsequent loss of Government revenue.

Madam Speaker, as alluded to by Hon. Chota, under ZCCM, we had a Ndola Precious Metals Plant which used to process the slimes from the electrolytic refining plants in Nkana, Mufulira and Ndola to produce gold, silver and selenium. Production of these metals has ceased because the owners of the refineries, KCM and Mufulira Copper Mines (MCM) prefer to export the material to processing plants abroad with higher recoveries. As Government, we appeal to our people to seize this opportunity and set up a refinery for recovering the precious metals and enter into negotiations with KCM and MCM to toll treat the slimes at a cost lower than plants overseas.

Madam Speaker, Hon. Hamududu expressed fears that the Chinese will soon have an upper hand in production of copper and manufacturing and thus influence the price of copper. The hon. Member of Parliament should know that the price of copper is determined on international markets such as the London Metal Exchange. However, we appreciate the investment being made by the Chinese in our copper mining industry…

Hon. Government Members: Hear, hear!

Mr M. B. Mwale:…and we look forward to the establishment of value adding plants so that Zambia can realise the true value of her metals. These will take the form of copper rods, cubings, wire and cables, copper artifacts and cobalt chemicals and salts.

Resuscitation of Underperforming Mines

Madam Speaker, underperformance of the mines now is seen in the light of the following:

(a) poor allocation of capital for development work, an activity which is critical to production;

(b) a falling head grade; and

(c) low tonnage output.

Madam Speaker, against this background of high fixed costs, the foregoing results into high operational costs. In the light of falling metal prices, the mines have come under great pressure and while Luanshya Copper Mines Plc (LCM) is already under care and maintenance, other operators are also threatened if their management do not address the issue of high production costs.

Madam Speaker, I acknowledge that the nation has been calling upon Government to take over the assets of LCM in order to avoid job losses in the industry. Others have even found the would be equity partners such as Puku Minerals and Madini Resources Ltd.

Madam Speaker, Hon. Kambwili has requested for the actual steps that Government is making in this direction. In addition, Hon. Mukanga commented that people need jobs other than terminal benefits. I wish to inform the House that as the Government, we are moving swiftly to ensure that operations at LCM which is under care and maintenance, resume as soon as possible. To this end, the technical committee appointed by Government to look into the modalities of resuming operations at LCM is making good progress.

Hon. Members: Hear, hear!

Mr M. B. Mwale: Madam Speaker, I have a simple message for my fellow miners in Luanshya.They should judge this Government under the leadership of President Rupiah Bwezani Banda by its deliverables and not by outbursts of hot air.

Hon. Government Members: Hear, hear!

Mr M. B. Mwale: Madam Speaker, to the hon. Members on your left, they should be made aware of the fact that the miners in Luanshya are well informed of what is happening to the global economy and that what has happened at LCM Plc and Chambeshi Metals is not of Government’s doing. In this financial crisis, Zambia is not a leader, it is only a passive player, but has to suffer the consequences. In such times, we should unite as a nation and stop politicking. With a unity of purpose, we shall cross the bridge. Demonstrations would only change the perception that investors have of Zambia being a safe place for investment.

Hon. Government Members: Hear, hear!

Mr M. B. Mwale: Madam Speaker, with regard to Maamba Collieries Limited (MCL) which Hon. Muntanga alleged has been neglected, I wish to remind the House that Government in an effort to revamp the mine transferred its shares to ZCCM-IH. ZCCM-IH has made progress in identifying a strategic equity partner for the recapitalisation of MCL and setting up of a thermal power plant. The process began in 2007 when ZCCM-IH put out a request for proposals in the press inviting qualified and experienced companies to bid as strategic equity and technical partners to start running the company. The evaluation of the bids has been finalised and Nava Bharat (Singapore) PTE Ltd has been recommended to ZCCM-IH as a preferred bidder.

Madam Speaker, the Government is alive to the fact that Zambia is part of the global village and its citizenry are well informed on what other Governments are doing to bail out their economies. Members will agree that we do not have the financial muscle to inject money into our ailing industries.

However, this Government in realising the financial crisis has had a negative impact on the mining industry, announced a stimulus package in the 2009 National Budget. The package includes:

(a) the removal of windfall  tax;

(b) increase of capital allowance to 100 per cent;

(c) reduction of duty on heavy fuel oils from 30 to 15 per cent;

(d) removal of customs duty on copper powder, copper flakes and copper blisters; and

(e) inclusion of copper and cobalt concentrates imported for our smelters on the import deferment scheme for Value Added Tax (VAT) purposes.

Madam Speaker, these measures are expected to reduce production costs of mining companies and at the same time, encourage utilisation of the local smelting capacity which at the moment stands at 750,000 tonnes per annum.

Hon. Government Members: Hear, hear!

Mr M. B. Mwale: Madam Speaker, Members of this House can attest to the fact that numerous heavy trucks carrying concentrates and transiting through our country to neighbouring countries were damaging our roads. The introduction of the import deferment scheme for concentrates is anticipated to increase the volume of concentrates treated in our local smelters.

Lieutenant-General Shikapwasha: Quality!

Mr M. B. Mwale: The benefit to our country is lessened damage to our roads due to reduced heavy trucks moving concentrates to other countries.

Madam Speaker, regarding Hon. Chimbaka’s question on the opening up of large-scale mines in Luapula Province, I wish to inform the House that the Government saw it fit to empower Zambians through small-scale mining projects and these are expected to graduate to large-scale mining projects with time. Our concern, however, is that most licences are held by Zambians who are not creating permanent and pensionable jobs. Our appeal is for these miners to seek development partners in order to move to large-scale mining.

Madam Speaker, I wish to conclude by stating that the difficulties experienced in the mining sector are not unique to Zambia. Many other countries are going through the same, if not worse. I want to assure the House that the Government is doing everything to safeguard the mining industry while at the same time, facilitating the development of greenfields.

Madam Speaker, I thank you.

Hon. MMD Members: Hear, hear!

The Minister of Sport, Youth and Child Development (Mr Chipungu): Madam Speaker, I wish to thank you most sincerely for according me this opportunity to contribute to the Motion on the 2009 Estimates of Expenditure, whose theme, Enhanced Growth through Competitiveness and Diversification, is very clear.

Madam Speaker, from the outset, I would like to commend and congratulate the hon. Minister of Finance and National Planning, Hon. Dr Situmbeko Musokotwane, and his entire staff for a well prepared Budget and for the able manner in which he articulated and skillfully presented it.

Hon. MMD Members: Hear, hear!

Mr Chipungu: Madam Speaker, the Budget Speech was inspiring and it touched on all the important sectors of the economy. It is regrettable that some hon. Members on your left have difficulties in understanding this Budget.

Hon. MMD Members: Hear, hear!

Mr Chipungu: Madam Speaker, the Budget has put in place measures to stimulate economic growth for our nation and to mitigate the negative impacts of the global economic crunch being experienced in developed countries.

Madam Speaker, further, the Budget makes a good start in our long and complex journey towards economic growth and prosperity in line with the FNDP and our 2030 national vision, which aims to transform our great nation into a middle income group.

Mr Chipungu cleared his throat.

Hon. Opposition Members: Water!

Mr Chipungu: Madam Speaker, I have no doubt that once implemented, this Budget will not only help transform the lives of our citizens through empowerment, but will also lead to further economic development and improved welfare for our people. The Budget, therefore, should be fully supported by all well-meaning people, who have the interest to see our nation develop to greater heights.

Hon. MMD Members: Hear, hear!

Mr Chipungu: Madam Speaker, the hon. Members calling the speech hollow have simply failed to comprehend the Budget and to correctly analyse the positive impact it will have on our economy.

Madam Speaker, suggestions from Hon. Dr Guy Scott that we abolish organisations such as Disaster Management and Mitigation Unit (DMMU), Zambia Competition Commission and the Environmental Council of Zambia (ECZ) are retrogressive. These institutions are serving the Zambian people and are on record to be doing extremely well.

Madam Speaker, I would like to commend the Chinese investors ...

Hon. MMD Members: Hear, hear!

Mr Chipungu: …who are doing a good job. Wholesome condemnation and discrediting Chinese investors will not help at all. No leader, with the interest of the nation at heart would try to discourage investors who are performing well.  This is why it would be very dangerous for the people of Zambia to entrust the leadership of this country to hon. Members on your left.

Hon. MMD Members: Hear, hear!

Mr Chipungu: Madam Speaker, the people of Zambia should continue trusting the MMD leadership under the able leadership of His Excellency, Mr Rupiah Bwezani Banda. Allow me now to refer to some of the provisions in the Budget to stress why it needs all our support.

 Agriculture and Food Security

Madam Speaker, agriculture is an important sector. Its role in economic development, food security and national pride is critical and cannot be underestimated. The sector has potential to boost our economy. I am happy to observe that a number of incentives have been introduced and that the Fertiliser Support Programme (FSP) will continue.

In this regard, I would like to commend the hon. Minister for supporting this sector. This year’s increase in the budget by 37 per cent is a reflection of the Government’s commitment to improving agricultural productivity.

Madam Speaker, my ministry will contribute to this noble goal through our youth and child empowerment programmes undertaken in collaboration with the Afro-Asian Rural Development Organisation (AARDO).

 Decentralisation

Madam Speaker, cognisant of the importance of decentralisation in national development and local empowerment, I cannot agree more with what the hon. Minister has suggested. Decentralisation broadens national participation in development and creates a sense of satisfaction and oneness.

Madam Speaker, our country is a youthful nation. Out of 11 million Zambians, 66 per cent comprise the youth spread across the country. As a ministry responsible for youth and child development, I find the need for decentralisation urgent and useful. We need to decentralise our operations in order to meet the aspirations of our people, alleviate poverty and thereby contribute to the well-being of the majority of population of this country who are the youth.

 Education

Madam Speaker, education is a universal right. It goes without saying that only well trained young people can safeguard our future. It is also true that the country’s wealth is based on the knowledge and skills of its citizens. Only high standards of knowledge and education can ensure Zambia’s place in the global economy.

Madam Speaker, the increase in the allocation to the Ministry of Education is, therefore, a well thought development since skills and creativity are essential pre-requisites for economic and social development.

Madam Speaker, to a large extent, my Ministry is actively involved in imparting skills in the youth through programmes conducted at various resource centres throughout the country and at the Zambia National Service camps. The ministry will therefore, continue with this daunting task, closely collaborating with the Ministry of Education. Together, we should be able to succeed.

Madam Speaker, I, therefore, totally agree with Hon. Sinyangwe’s assertion that a lot needs to be done to equip our youth with the necessary skills. You will note that many of our citizens who have excelled in sports and brought honour to this country are youths who are still in schools. While the Ministry of Education offers scholarships to the less privileged and those that excel academically, we are seriously considering extending scholarships to sportsmen and women who have excelled both academically and in sports who have in turn helped put Zambia on the map. These will be recognised and helped to succeed in their educational pursuits and other disciplines in order to empower them and thereby secure their future.

Infrastructure ─ Private/Public Partnerships

Madam Speaker, in the Budget presentation, emphasis was placed on promoting private-public partnerships. We support the initiative and urge the private sector to size the opportunity.

Madam Speaker, in the context of sport, youth and child development, one of the areas where our attention must be directed is in swimming. Currently, there are many under utilised swimming pools across the country either owned by local authorities or private institutions like the mines. If these facilities were rehabilitated, they would contribute significantly to the development of the sport and support the youth and children in their careers for their benefit and that of the nation.

Madam Speaker, I have observed that many of these swimming pools are seasonal. This means that these facilities are only used in the hot season from September to November and thereafter, they remain unused. Therefore, my suggestion is that we should together explore the possibility of rehabilitating this infrastructure through public private partnerships to ensure optimisation of these facilities by utilising them throughout the year.

We are considering having heated swimming pools because such facilities will provide continuity in training which will in turn increase the competence and skills of our youths and children. Our colleagues in neighbouring countries are leaders in the filed of sport because they can use their facilities throughout the year. I have met most of our young swimmers who have done us proud in international competitions. Most of them look like they can do even better when facilities are availed to them for use during the whole year.

Madam Speaker, it is therefore, my humble appeal to the private sector to take up the challenge here in Lusaka, Copperbelt, Livingstone provinces and indeed, the whole country including the rural areas.

Madam Speaker, I wish also to implore hon. Members to apportion part of their CDF…

Hon. Members: Hear, hear!

Mr Chipungu:…towards the infrastructure development including the swimming pools in their constituencies.

 Hon. Government Members: Hear, hear!

Mr Chipungu: Once again, I wish to hail Government for this good budget and urge this House and the public at large to fully support it.

 I thank you, Madam Speaker.

Hon. Members: Hear, hear!

The Deputy Minister of Finance and National Planning (Ms C. M. Kapwepwe): Madam Speaker, thank you for according me this opportunity to make my contribution to the Motion on the Floor.

Madam Speaker, allow me to begin by taking this opportunity to thank His Excellency the President, Mr Rupiah Bwezani Banda, for having given me this rare honour and privilege to serve the people of Zambia as a Member of Parliament and Deputy Minister of Finance and National Planning.

Hon. Government Members: Hear, hear!

Ms C. M. Kapwepwe: I join other members of my family who sat in this august House before me. My father, Simon Mwansa Kapwepwe who not only served in the Opposition, but in several portfolios including that of Finance Minister and as Vice-President and Leader of Government Business in the House…

Hon. Government Members: Hear, hear!

Ms C. M. Kapwepwe:…and my sister, Chilufya Kapwepwe who served as MMD Member of Parliament for Lunte. I commit myself to the same level of dedication and service to the Zambian people to whom all of us have pledged to serve and deliver economic and social development.

Hon. Government Members: Hear, hear!

Ms C. M. Kapwepwe: Madam Speaker, this Year’s Budget has been prepared against the backdrop of a global financial crisis and great uncertainty for major world economies. Some previous debaters before me have indicated, this is indeed, not time to be timid and fall back on a safe and predictable budget. This is indeed, a time to be bold and “bite the bullet” and respond effectively in a very challenging situation. This is indeed, precisely how this Budget has responded.

Hon. Government Members: Hear, hear!

Ms C. M.  Kapwepwe: Madam Speaker, some hon. Members have in their debate questioned the linkage between the 2009 Budget and Government planning and long term objectives. As already ably pointed out by debaters from this side of the Floor, one only needs to peruse through the following documents, namely:

(a) the MTEF – 2009 to 2011;

(b) the FNDP 2006 to 2010;

(c) the Vision 2030; and

(d) the President’s Speech to Parliament in January, 2009.

Madam Speaker, one has to be very analytical in order to discern the very deliberate, concise and focused way this Government is proceeding in ensuring poverty reduction and the sustainable development of this country.

Hon. Government Members: Hear, hear!

Ms C. M. Kapwepwe: Some hon. Members have even insinuated that there is a bias and inconsistence in budget allocations for infrastructure development. In response, it is true to say that even a quick perusal of the above mentioned documents will clearly show them that this Budget is directly connected to Government’s already established vision.

Hon. Members: Hear, hear!

Ms C. M. Kapwepwe: The MTEF supports sustained macro-economic stability, promotes economic diversification and the enhancement of competitiveness of the Zambian economy.

The 2009 Budget is also very much aligned to the FNDP which focuses on key strategic areas such as agriculture, infrastructure development, health, education and skills development among others. The plan also seeks to encourage Government to focus its spending on strengthening the relevant economic and social infrastructure, especially roads, schools, hospitals, energy and communication sectors and enhancing agriculture and rural development. Government’s medium term goal is to accelerate economic diversification which entails moving away from mining sector dependency to agriculture, tourism and manufacturing.

Hon. Government Members: Hear, hear!

Ms C. M. Kapwepwe: Madam Speaker, the 2009 Budget has indeed, addressed the critical elements of national planning, placing emphasis on economic diversification, infrastructure development, development of the agriculture and tourism sectors while addressing the challenges in health and education. This budget has not only ably responded to building on Government’s strategies for significant and sustainable development, but has remained responsive to the current economic challenges while maintaining the local perspective.

Madam Speaker, I now wish to address some specific issues which have been identified as areas of concern by some hon. Members in the House. Many have said that this budget does not offer a response to the impact of the world economic crisis. On the contrary, it this budget has proposed deliberate action to address the current economic challenges. There may be some hon. Members and indeed, the public at large who expected to hear specific words or phrases such as ‘stimulus package, survival plan, bailouts of banks and other companies.’ These may be relevant solutions for particular economies which are very differently structured and very well developed.

Hon. Government Members: Hear, hear!

Ms C. M. Kapwepwe: The depth and impact of the crisis will clearly be different for emerging economies which are less dependent on credit and financial and money markets than our friends in highly developed economies. This year’s budget has indeed responded to the financial crisis. Realising that its greatest impact will be on the mining sector which is a major contribution to our economy, Government has proposed specific incentives which have ably been articulated by the hon. Minister of Finance and National Planning who itemised the following strategies:

(a) inclusion of copper and cobalt concentrates on the important deferment schemes for VAT purposes;

(b) increase of capital allowances to 100 per cent;

(c) reduction of customs duty on heavy fuel oils from 30 to 15 per cent;

(d) reduction of customs duty on heavy fuel oils from 30 to 15 per cent; and

(e) removal of customs duty on copper powder, copper flakes and copper blisters and other incentives.

Madam Speaker, this has been a deliberate effort to ensure that the mines are able to survive the world economic crisis and more importantly guard against job losses in this sector.

Other incentives which have been proposed and are aimed at promoting growth include:

(a) overall increase in expenditure as compared to the previous year ;

(b) significant increase in the agriculture budget;

(c) tourism infrastructure development; and

(d) tax incentives for manufacturing sector through the Multi-facility Economic Zones and industrial parks.
                     
Madam Speaker, various other incentives have also been proposed which are aimed at promoting domestic and foreign investment and ultimately economic growth.

Windfall Tax

Madam Speaker, another area which stimulated considerable debate was the proposed removal of  windfall tax and its replacement by a variable profit tax.

Ms Lundwe: Hear, hear!

Ms Kapwepwe: Various concerns have been raised by hon. Members on your left including wild speculation as to the motive and reason for this action. Some Members have advanced such reasons as fear, arm twisting and other reasons which may be a result of vivid imaginations. I would like to assure the House that this action has been well thought out and fully deliberated on.

Hon. Government Members: Hear, hear!

Ms Kapwepwe: The windfall tax in its current form is onerous, and has faced legal and administrative challenges in its enforcement. Its legality has been questioned against the backdrop of signed development agreements. Government is aware that many hon. Members who have contributed to debate on this issue have questioned the capacity of Government and in particular, Zambia Revenue Authority (ZRA) to collect a variable tax calculated on profits. Let me assure the House that steps are being taken to strengthen the capacity of ZRA in the following areas:

(a) the qualified auditors and accountants who work for ZRA are to undergo training in auditing multinational companies;

(b) they will also undertake cite visits to South Africa to learn and gain knowledge of how the revenue authority there addresses these challenges;

(c) introducing a programme supported by the Norwegian Government to audit the mining companies with the inclusion of ZRA staff; and

(d) there are international agreements in place for exchange of tax related information concerning multinational companies.

Hon. Government Members: Hear, hear!

Ms Kapwepwe: Madam Speaker, these measures are a direct response to the capacity challenges posed in the area of tax administration in the mining sector.

Public Expenditure Management and Financial Accountability

Madam, I now turn to an area of grave concern for not only all Members of this House but for all Zambians and that is public expenditure management and financial accountability.

Madam Speaker, it is true that year after year the Auditor-General’s Report cites many areas of irregularities and misappropriation in public expenditure. Government has embarked on several initiatives with the support of various donors to enhance public expenditure management and financial accountability. Of note is the opening of the Auditor-General’s office in provincial capitals to ensure the work of this office is enhanced by its proximity to the ministries, provincial programmes and other spending agencies. In this year’s Budget, an amount has been allocated to this programme in addition to continued donor support. This will undoubtedly strengthen Government’s oversight on how the country’s is expended.

Plans are also underway to review Government’s accounting and treasury systems in order to offer more controls, checks and balances meant to ensure a more robust control environment. These actions include:

(a) implementation of the Financial Management and Information System (IFMIS);

(b) reform of the Public Procurement Act to streamline and enhance the tendering process, thereby avoiding the underutilisation of allocated capital expenditure and its resultant negative impact on implementation of development programmes;

(c) strengthening of financial sector regulation and supervision; and

(d) improvement of cash and expenditure management through the establishment of a treasury single account.

The above actions, Madam Speaker, are aimed at better management of public expenditure flows including the re-organisation of government banking operations thereby significantly reducing idle cash balances.

Madam Speaker, the MMD Government continues to follow its well articulated development programmes. This year’s Budget is another building block in the strategy of poverty alleviation and sustainable economic and social development. The Zambian people’s vision of becoming “a prosperous middle income nation by 2030” is firmly on course.

Hon. Government Members: Hear, hear!

Ms Kapwepwe: We would do well to all work together towards the achievement of this vision.

Mr Sichilima: Quality!

Ms Kapwepwe: I wish to conclude, Madam Speaker, by quoting from the President’s Address to this august House in January 2009 and I quote:

“I invite all Zambians regardless of their political leaning, ethnicity, race or religious background, to unite behind our common agenda of defeating poverty, creating wealth for ourselves and propelling Zambia forward, towards prosperity.”

In keeping with this statement, I urge all hon. Members of the House to support this Budget.

I thank you, Madam Speaker.

Hon. Government Members: Hear, hear!

The Deputy Minister of Home Affairs (Mr D. Phiri): Madam Speaker, I would like to thank you for the opportunity you have given me to debate the motion on the Floor.

Madam, I join other hon. Members of this House in congratulating Hon. Situmbeko Musokotwane, MP on his well deserved appointment as Minister of Finance and National Planning.

Hon. Government Members: Hear, hear!

Mr D. Phiri: Let me also commend the Minister of Finance and National Planning for his first ever Budget Speech which he so ably delivered to this House.

Hon. Government Members: Hear, hear!

Mr D. Phiri: Madam Speaker, I have taken time to reflect on the Budget Speech itself as well as the various comments from Members of this House on the Budget Speech from the nation at large. The general feeling is that the 2009 Budget Speech is realistic in light of uncertainties in the global economy.

Hon. Government Members: Hear, hear!

Mr D. Phiri: My view, Madam Speaker, is that, it is a balanced Budget because it has taken into account both endogenous and exogenous variables.

Hon. Government Members: Hear, hear!

Ms Cifire: Tell them!

Mr D. Phiri: Madam Speaker, my fellow economists such as the Minister of Finance and National Planning and young ones such as the hon. Member of Bweengwa Hon. Hamududu and others in this House, know that budget preparation entails always being mindful of internal and external factors that are likely to impact on the execution of the budget.

Hon. Government Members: Hear, hear! Hammer!

Mr D. Phiri: Madam Speaker, I am glad that the Minister of Finance and National Planning has taken into account such factors.

Madam, most importantly the Minister of Finance and National Planning in his Budget took into account Zambia’s macro economic frameworks which include:

(a) outlook for growth;

(b) poverty and;

(c) job creation in relation to the developments in the global economy.

Madam Speaker, the tightening of financial markets in the highly industrialised economies such as the United States of America and Europe has significantly reduced the likely availability of financing for direct investment. To support this point, the Minister of Finance and National Planning says on page 2 of the Budget Speech that:

“Mr Speaker, preliminary data indicates that the global economic growth in 2008 slowed to 2.5 per cent from 3.7 per cent in 2007. This was on account of the onset of recession in the last two quarters of the year, triggered by the turbulence in the financial markets of these economies.”

Madam Speaker, it is a fact that these global developments had some negative effects on the domestic economy, adversely affecting growth and inflation and this is why the Minister of Finance and National Planning was candid to say that the global economy will beyond doubt, negatively impact our economy and constrain our efforts to reduce poverty.

Notwithstanding, our resolve as the MMD Government to fight poverty, …

Hon. Government Members: Hear, hear!

Mr D. Phiri: … an issue that President Banda’s Speech to Parliament put on top of the agenda. Madam Speaker, the real issue that people are asking or want to know is whether this Government has put in place through the 2009 Budget an economic stimulus package. Madam Speaker, the answer is yes.

Madam Speaker, in the 2009 Budget, the Minister of Finance and National Planning has put in place the following measures:

(a)  providing tax rebates and tax relief in excess of K2 trillion;

(b) proposing a number of fiscal measures in order to support the mining industry so to avert further job losses;

(c) reducing income tax for some people; and

(d) developing MFEZs in Chambeshi and Lusaka, following the East Asian Model. The MFEZs offer the prospect of faster industrial development and employment hence contributing to the diversification our economy. This model has worked wonders in Asia and I am convinced that it will work in our country and create the much needed employment.

Madam Speaker, allow me to comment on the broad macro economic targets for this year namely:

(a) achieve growth of 5 per cent;

(b) lower inflation to 10 per cent; and

(c) limit domestic borrowing to 1.8 per cent of Gross Domestic Product (GDP).

Madam Speaker, dissenting views on the 5 per cent growth target have emerged in this House. Other hon. Members have argued that 5 per cent targeted growth of GDP cannot reduce poverty while others have argued that the Minister of Finance and National Planning should have projected a lesser growth target.

Madam Speaker, to start with the 5 per cent is we want to achieve is ambitious yet a modest figure. The manner in which the hon. Minister of Finance and National Planning has arranged resources in this year’s budget is definitely supportive of that 5 per cent target. It is a target that we want to achieve and all the players in the economy, including all hon. Members here should be galvanised towards achieving the 5 per cent target.

Madam Speaker, if we can all deliver on the good policies in agriculture, namely, the FSP which this Government is very committed to, livestock development and improvement of extension services, the 5 per cent target is tenable.

Madam Speaker, tourism development is critical to our economy. Others have argued that the increase on budgetary allocation to tourism will not yield immediate results. It is important for this Government to invest in tourism development for it has a lot of potential to grow into a big sector.

Madam Speaker, this is a sector which as the President said in his Address to the National Assembly has proved to be resilient to external shocks. Again, this is also in line with Government’s policy of re-allocating resources from non-priority areas to the main ones. Others have condemned us for limiting domestic borrowing to 1.8 percent of Gross Domestic Product, to them I would like to say that if we borrow internally, we shall essentially be taking away money from the private sector.

Interruptions

Mr D Phiri: If we borrow a lot of money internally, the other players on the market will not have resources. The little money that will remain on the market …

Madam Deputy Speaker: Order! Let us listen and we should lower voices when consulting.

Mr D Phiri: Madam Speaker, the little money that will remain on the market will be costly, thereby making the cost of business expensive in Zambia. Inflation will be on the rise. We have learnt from past lessons that increased internal borrowing by Government has brought about undesired inflation and high interest rates which is why this Government has continued to pursue tight fiscal and monetary policies.

Madam Speaker, with regard to the Ministry of Home Affairs, the budget has increased marginally from K182 billion in 2008 to K188 billion in 2009, representing a 3 per cent increase. In line with the ministry’s mandate of maintaining internal security, I commend Government for this increase as it will enable it to be able to do the following:

(a) construct prisons in various parts of this country;

(b) construct border posts in some parts of the country;

(c) rehabilitate a drug rehabilitation centre under the Drug Enforcement Commission;

(d) construct police houses;

(e) recruit  police officers;

(f) construct immigration border posts; and

(g) recruit immigration officers.

Madam Speaker, I thank you.

Hon. Members: Hear, hear!

The Minister of Community Development and Social Services (Mr Kaingu): Madam Speaker, in contributing to the debate on the 2009 Budget Motion by the hon. Minister of Finance and National Planning (Dr Situmbeko Musokotwane), I wish to first pay special tribute to our late President Dr Levy Patrick Mwanawasa, SC who was, in fact my mentor in various aspects of life and throughout my political career.

Hon. Members: Hear, hear!

Mr Kaingu: Madam Speaker, I would also like to congratulate His Excellency the President Mr Rupiah Bwezani Banda on his election as President of the Republic of Zambia. Madam Speaker, President Banda has a unique personality with traits of tolerance and resilience as exhibited through his extension of an olive branch to all those who opposed him during the presidential election campaigns and, indeed, to those with opposing views to his style of leadership as a reigning President of Zambia.

Hon. Members: Hear, hear!

Mr Kaingu: Madam Speaker, the Budget that we are debating which was presented to this august House by the hon. Minister of Finance and National Planning shows that he is the most qualified hon. Minister of Finance and National Planning since 1964 …

Hon. Members: Hear, hear!

Mr Kaingu: … is an inspiration to us and, please, Dr Musokotwane, do not be intimidated because leadership is not about ‘I’ but ‘we’. I would like to assure you that we are behind you.

Hon. Members: Hear, hear!

Mr Kaingu: Madam Speaker, I know that the people who worked with Hon. Magande are still at the ministry.

Hon. Member: Bulela!

Mr Kaingu: Madam Speaker, I have enormous hope and confidence in the current Minister of Finance and National Planning in the sense that he is well qualified for the job. He is the most qualified Minister of Finance that Zambia has ever had. He has a PhD in economics.

Hon. Members: Hear, hear!

Mr Kaingu: Madam Speaker, I would like to thank Dr Machungwa for recognising that aspect because for some of us who are studying, we are encouraged to see that there are people like you who appreciate education.

Hon. Members: Hear, hear!

Madam Deputy Speaker: Order! Hon. Minister, can you speak through the Chair because you will soon attract comments.

Laughter

Mr Kaingu: Madam Speaker, the 5 per cent economic growth is achievable. In fact, the hon. Minister of Finance and National Planning can actually achieve the 5 per cent economic growth target through good agricultural production alone. Looking at the shortage of food in the world today, agriculture alone can enable this country earn a lot of foreign exchange. As for those who are despising tourism sector, I would say that it is a sheer lack of understanding of the potential that it has. This has made them not to even appreciate the efforts that the Government is putting in place to develop the tourism sector.

Madam Speaker, I now want to humbly speak about my ministry. My ministry is a vehicle that was created by this caring Government to look after the vulnerable and most disadvantaged people in Zambia. The mission statement of my ministry is “to effectively and efficiently facilitate the provision of socio-economic empowerment and welfare support to the poor and vulnerable and to promote the development and preservation of culture for sustainable human development”.

Hon. Members: Hear, hear!

Mr Kaingu: Madam Speaker, in order to fulfil this mission, my ministry has put in place policies and programmes to address the needs of the poor and vulnerable groups, including persons with disabilities, as well as the preservation and promotion of culture. The programmes are structured within the framework of the FNDP.

Madam Speaker, let me now itemise each programme that is found at my ministry in relation to the budget, of course.

Madam Speaker, the public welfare assistance scheme (PWAS) …

Madam Deputy Speaker: Order!

Business was suspended from 1815 hours until 1830 hours.{mospagebreak}
[DEPUTY CHAIRPERSON in the Chair]

Mr Kaingu: Mr Speaker, before I was interrupted by the tea break, I was saying the PWAS is one of the Government’s major social safety nets aimed at providing support to the most needy such as old, disabled or chronically ill persons who have no support from anyone.

Interruptions

The Deputy Chairperson: Order! Can we listen.

Mr Kaingu: The programme targets the poorest of the poor. The PWAS is in three major components namely; education, health and social support. In the year 2008, my ministry allocated K4.29 billion towards this programme. In this year’s Budget, K6.7 billion has been allocated to this programme. This increment is due to the high demand for social welfare support from vulnerable people.

Interruptions

The Deputy Chairperson: Order! Can we listen.

Street Children’s Programmes

Mr Kaingu: Mr Speaker, with an allocation of K10 billion to this programme in 2008, my ministry made progress by rehabilitating and reintegrating street children into their families and communities. In addition, the resources were used to turn the Chikumbi Learning Resource Centre in Chibombo District into a child care facility model, where children who have been removed from streets are accommodated and empowered with life skills.

Mr Speaker, I humbly ask this House to listen to what I am saying because if they will not listen, I will not be able to answer their questions when question time comes.

Hon. Government Members:  Hear, hear! Babuze.

Mr Kaingu: In this year’s budget, my ministry has allocated K4 billion to this programme.

Mr Muntanga was making noise.

Mr Kaingu: Hon. Muntanga.

Hon. Members: Hear, hear! Kalomo.
                        
 Cash Transfer Scheme
 
Mr Kaingu: Mr Speaker, the cash transfer scheme targets households that are headed by the elderly, children, orphans, as well as incapacitated persons, who are caring for orphans and vulnerable children (OVC). The assistance given is in terms of cash. The advantage of cash is that it is more flexible especially in Hon. Muntanga’s pockets  …

Laughter

Mr Kaingu: … than material support.

Mr Muntanga: On a point of order, Sir.

Laughter

The Deputy Chairperson: Order hon. Minister. It would appear the hon. Minister really wanted to hear Hon. Muntanga say something. You have your point of order, Hon. Muntanga.

Laughter

Mr Muntanga: Mr Speaker, is this hon. Minister, who I am trying hard to support in order to drag me into this cash transfer, …

Laughter

Mr Muntanga: … when I do not benefit from it as an individual…….

Laughter

Mr Muntanga: … and yet, him who is also becoming disabled is surer of benefiting. Is he in order to drag me into this.

Laughter

The Deputy Chairperson: So, hon. Minister, to avoid points of order of that nature, stop referring to Hon. Muntanga or any other person.

Can you please, continue.

Mr Kaingu: Thank you very much, Mr Speaker. Currently, the scheme is being piloted in Kalomo, …

Laughter

Mr Kaingu: Kazungula, Katete, Monze and Chipata.

Hon. Government Members: Hear, hear!

Mr Kaingu: My ministry has set aside K1.5 billion as counterpart funding and this year’s budget is K3.5 billion …

Mr Shakafuswa: On a point of order, Sir.

The Deputy Chairperson: A point of order is raised.

Mr Shakafuswa: Mr Speaker, I rise on a very serious point of order. Is the hon. Minister in order not to mention that Hon. Muntanga’s relatives are benefiting from government welfare support in Kalomo because he is unable to give them cash transfers. Is he in order not to mention that?

Laughter

Mr Shakafuswa: I need your serious ruling.

Laughter

The Deputy Chairperson: Order! Well, I know it is getting late, but …

Laughter

The Deputy Chairperson: … let us listen and give the hon. Minister the chance to debate.

Can you continue, hon. Minister.

Mr Kaingu: Mr Speaker, this year, K3.5 billion has been allocated to this programme in order to include five additional districts, bringing the total number of districts where this scheme will be piloted to ten. This is the beginning of the roll-out plan to turn the scheme into a nationwide programme.

Persons with Disabilities

Mr Kaingu: Mr Speaker, in an effort to address the plight of persons with disabilities, my ministry through the Zambian Agency for Persons with Disabilities (ZAPD), in last year’s budget allocated K5 billion for the implementation of programmes and activities aimed at improving the welfare of the disabled. In this year’s budget, a similar amount has been allocated to ZAPD. The ministry has also endeavoured to empower persons with disabilities through micro-finance services such as the National Trust for Disabled which has been allocated K550 million.

Hon. Government Member: Hear, hear!

Mr Kaingu: The ministry is also spearheading the mainstreaming of disability issues in order to track the budgets of other ministries so that they are responsive to the needs of the disabled. To make this initiative a success, we have appointed disability focal point persons in each ministry.

Hon. Government Member: Hear, hear!

Mr Kaingu: Mr Speaker, it is important to remember that all of us here are potentially disabled.

Food Security Pack Programme

Mr Speaker, the ministry implements the food security pack programme which is meant for vulnerable, but viable farmers. However, some of the hon. Members only find vulnerable people viable when it is time for elections.

Hon. Government Member: Hear, hear!

Mr Kaingu: Mr Speaker, currently, the ministry had engaged the Programme Against Malnutrition (PAM) to implement 65 per cent of this programme, while 35 per cent will be implemented by the ministry. It is hoped that when the ministry is through with its capacity building activities for its staff, then it will be in charge of 100 per cent of the programme.

  In this year’s Budget, the ministry has allocated K10 billion for this programme.

Mr Speaker, let me humbly make an appeal to my fellow hon. Members of Parliament who seem to be demonising the indigenous foods. I want say here that us who were born and raised in villages, and I am not talking about those who were born in Busakile or Chamboli …

Laughter

Mr Kaingu: … but in villages in rural areas, we used to eat vegetables. These vegetables were not rape, cabbage or spinach but indigenous vegetables. We used to eat fruits …
Laughter

The Deputy Chairperson: Just continue.

Mr Kaingu: We used to eat fruits but they were not oranges or apples.

Major Chizhyuka: On a point of order, Sir.

The Deputy Chairperson: Order, hon. Members! In all fairness, I want us to listen to the hon. Minister but I will give you the point of order, hon. Member for Namwala. On this hon. Minister, this will be the last point of order. You have your point of order.

Major Chizhyuka: Mr Speaker, is the hon. Minister, who is debating relatively better than last time …

Laughter

Major Chizhyuka: … in order to deal with an issue of indigenous fruits when in actual fact, the presiding Speaker had earlier ruled against us debating on this matter on the Floor of this House. It was on that basis that some of us did not deal with this matter of indigenous foods in our earlier debates and let it hang because the Speaker ruled against talking about it.

Laughter

Major Chizhyuka: I beg your serious ruling on this matter.

Hon. UPND Members: Hear, hear!

The Deputy Speaker:  The serious ruling on this matter is that a point of order is being raised on an issue that was debated a long time ago. So that point of order cannot be allowed.

Can the hon. Minister continue.

Hon. Government Members: Hear, hear!

Mr Kaingu: Mr Speaker, the only difference between me and hon. …

The Deputy Chairperson: Order! You discuss the Motion  ...

Laughter

The Deputy Chairperson: Do not continue referring to the point of order.

Mr Kaingu: Mr Speaker, what I am saying is that there are some people who are just blowing hot air and think that is debating.

Mr Speaker, we used to eat potatoes but they were not Irish potatoes. So, these hon. Members of Parliament who are trying to demonise the indigenous fruits have to be very careful because some of us were raised and weaned on that food. To-date, my people are still eating this food. So it is not right to …

Mr Syakalima: So what are you trying to say?

Mr Kaingu: I am saying exactly what you are hearing.

Laughter

Mr Kaingu: Mr Speaker …

Interruptions

The Deputy Chairperson: Order! Order! Continue, hon. Minister.

Mr Kaingu: In caring for the aged, the ministry realises the need to provide better welfare for old persons. In this regard, my ministry looks after destitute old persons by providing grants to institutions looking after or working with old persons. My ministry has developed a national aging policy aimed at addressing some of the issues elderly persons face.

As regards women’s development programmes, the contribution of women to the development and the welfare of our society cannot be over emphasised. For this reason, my ministry in this year’s budget has allocated K700 million as grants to women’s clubs in order to empower them economically.

Hon. Government Members: Hear, hear!

Mr Kaingu: It is evidently clear that our women in rural areas cannot access the CEEF.

Mr Speaker, my ministry will continue to provide non-formal education and skills development to the women, youth and persons with disabilities who have not had a chance to access formal education, particularly in the rural and remote areas, in order to improve their livelihoods.

In this year’s budget, K1.5 billion has been allocated to this programme in order to support infrastructure projects on a self-help basis and to also contribute towards the renovation of buildings that will assist in facilitating the implementation of these projects in communities. Self-help projects are labour based and community driven.

Mr Speaker, finally I would like to talk about preservation, development and promotion of arts and culture. In the 2009 budget, my ministry will focus on policy coordination, review of legislation and support to arts and cultural industries to stimulate employment and wealth creation in the cultural sector. My ministry has allocated a colossal sum of K1.43 billion towards the development of arts and cultural infrastructure.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

The Minister of Information and Broadcasting (Lieutenant-General Shikapwasha): Mr Speaker, I thank you for giving me this wonderful opportunity to add my voice to the debate on the 2009 Budget Speech by the hon. Minister of Finance and National Planning, Dr Situmbeko Musokotwane.

Mr Sichilima: You should baptise them.

Lieutenant-General Shikapwasha: Mr Speaker, from the onset, let me commend and congratulate Dr. Musokotwane for the wonderful and visionary Budget that he has presented to this august House.

Mr Speaker, in so doing, I must first of all thank God the Almighty for the wisdom that he has given to President Rupiah Bwezani Banda for appointing a man with a great vision for the Zambian economy.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: Mr Speaker, I place on record my congratulations to His Excellency, President Rupiah Bwezani Banda, for winning a free, fair and transparent Presidential election.

Hon. Government Members: Hear, hear!

Mr Sichilima: Bwekeshenipo!

Lieutenant-General Shikapwasha: Yes, I wish to congratulate the President for wining a free, fair and transparent election.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: Let me also congratulate His Honour, the Vice-President for being appointed to his portfolio. I also wish to commend him for the wonderful leadership that he gives to us in this wonderful House.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: Mr Speaker, President Rupiah Bwezani Banda set the tone, pace and drive for Zambia to achieve political and economic stability just after the nation was moving out of the spirit of mourning our late President, Dr Levy Patrick Mwanawasa, SC.

Mr Speaker, many of us on your right and left shared great and intimate moments of reflection with the late President, Dr Mwanawasa. Many times the late President would reflect loudly on how if he had been given the opportunity, he would move Zambia out of poverty.

Mr Speaker, the late President argued that if all those who were insulting, opposing and giving him grief would only give him at some time an opportunity to preside over Zambia in a more peaceful environment, he would deliver on many issues before his time would come to an end.

  Of course, when the late President died, there were many words of accolades for him and indeed, many spoke about how good he was when he was dead. This is hypocrisy.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: We must give to Ceasar what belongs to Ceasar when Ceasar is alive.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: Today as a nation, we are seeing the same trend of unnecessary hatred, unnecessary opposition and insults towards President Rupiah Bwezani Banda. The same people that gave late President Levy Mwanawasa grief are now on President Rupiah Banda.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: Mr Speaker, should we not learn as Zambians the vital and important lessons from the death of one President and apply the wisdom to help another President rule over the nation well.

Mr Speaker, I have known and worked very closely with His Excellency Rupiah Bwezani Banda for more than forty years. I want to tell you that this is a man of great wisdom. He is a man with a heart to serve people from the lowest to the highest level. He is very educated, a great diplomat who, after only offering a few words of diplomacy on the situation in Zimbabwe, the entire situation turned for the better.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: Mr Speaker, I urge all those who have described the President’s Speech as hollow to read it again. May be, the hollowness is in themselves.

Hon. Government Members: Hear, hear!

Lieutenant-General Shikapwasha: Mr Speaker, when President Rupiah Banda was elected by the United Nations to go and preside over the independence process of an emerging Namibia, as a ‘silent President,’he did very well. Today, Namibia is a prosperous nation. His tenacity made it possible for him to sort out a very difficult situation in Namibia.

Mr Speaker, I want to appeal to the Zambians to give this President time for him to bring out the gifts and the talents that made it possible for him to deliver Namibia. He can also deliver development to this nation.

Mr Speaker, I must say that President Rupiah Banda has actually started to deliver. As you know, it is very difficult for a nation to lose a President. When President Mwanawasa died, President Rupiah Banda presided over the nation very well considering that the nation was in great grief.

Interruptions

The Deputy Chairperson: Order!

Please let us consult quietly.

Lieutenant-General Shikapwasha: Mr Speaker, President Rupiah Banda held Zambia together at a time when it was very difficult for the country to move forward. Not only did he steer the country through a difficult time, but he provided a peaceful, free, fair and transparent presidential election using a shoestring budget.

Therefore, this is a man that we must support as Zambians and ensure that he delivers. I must maintain that very few economies can hold their own after the death of a President and immediately after an election. The economic crisis has placed many demands upon the economy, but it is still holding together under the leadership of President Rupiah Banda.

Mr Speaker, this Budget presented by Hon. Dr. Musokotwane is a very good budget. It is visionary and simple. It is a budget that can be understood by a common man anywhere in Zambia. Co-operating partners have described it as a very good budget. The Budget has made our co-operating partners commend Zambia on its economic policies. It has even made many of our co-operating partners to even promise never to reduce their direct budget support to Zambia.

Mr Speaker, let me illustrate this to you by a wonderful article that came out in the Daily Mail newspaper yesterday and it was headed, ‘Britain Pledges Continued Support’

Mr Speaker, let me read a little bit of this article that I shall lay on the Table. It reads:

“Britain will not reduce direct budget support to Zambia despite the global credit crunch.

Kerry McCarthy who is a Member of Parliament for Bristol and Parliamentary Aid to Douglas Alexander, Secretary of State for International Development said that her Government would continue to provide financial aid to Zambia and other poor countries although Britain’s economy has also been badly affected by the global recession.

Ms McCarthy said there would be no reduction in budget support and that support to Zambia and other countries was expected to increase to an average of above 0.7 per cent of her country’s gross national income by 2013.”

Ms McCarthy is part of the delegation of British Members of Parliament who are in the country on a six-day visit.”

Mr Speaker, this is wonderful commendation by Members of Parliament from the United Kingdom who taught us how to budget and who produced this august House here. They are commending this country for its wonderful economy and good governance. How then can those who are learners on your left, especially from the PF come and criticise this Budget when those that are teaching them are saying that it is a good one? How can the learners criticise this budget as hollow?

Mr Speaker, our co-operating partners are pledging their continued support to Zambia because of its good governance, good budgeting and the way it runs its economy such that even the poor are benefiting from the country’s wealth. Therefore, it is necessary for hon. Members on your left to commend Hon. Dr Musokotwane for this wonderful Budget. However, they do not want to commend him because their violent blindness has denied them the vision of a good budget.

Mr Speaker, it is written indeed, like Hon. Masiye said in the wonderful book that “Where there is no vision, people perish.” This budget provides a vision and hope for all the people of Zambia. This is the truth, there is no vision where there is no vision, there is no hope where there is no hope and people live in panic. In this Budget, my colleague, the hon. Minister of Finance and National Planning has clearly defined our vision for this country in terms of national expenditure for the next twelve months.

Mr Speaker, we have a vision and the people of Zambia are going to benefit a lot from it. The hon. Minister has stated that there shall be growth of, at least, a minimum of 5 per cent. This is necessary because then, we can also be able to overcome inflation and provide adequate food for our people.

Mr Speaker, as Chief Government spokesman, I am sometimes very perturbed and disturbed with the issues that have been debated in this august House. One of those issues is captured in today’s Times of Zambia on page 2 which has the headline “Stop supporting illegal settlements.”

Mr Speaker, being lawmakers, we must ensure that people from our constituencies obey the laws that we make here. We cannot therefore be supporting illegality when we know the law. For example, is it not in these illegal settlements that Cholera is born? We need to make sure that our people live in planned settlements. This will make our people live in good conditions. Is it not necessary that we should also teach our people how to catch fish without using mosquito nets? 
Why should our people use mosquito nets to catch fish when we can teach them alternative ways of catching fish?  If we all allow this trend to continue, it is going to destroy our country. Therefore, it is necessary as hon. Members to teach our people to follow and obey the laws.

Mr Speaker, the rank and file on your left, especially from the PF is being inculcated with the spirit of Esther Phiri. This spirit is moving very badly.

Laughter

Lieutenant-General Shikapwasha: Let me say that when the head is violent, the rest of the body will also be violent.

Laughter

Lieutenant-Shikapwasha: My appeal, therefore, to my colleagues in the PF is whilst you were born out of violence…

The Deputy Chairperson: Order! The Chair would prefer that you veer off that path.

You may continue, please.

Lieutenant-Shikapwasha: Mr Speaker, Zambians want an economy that provides many opportunities for all citizens to realise their potential and fully provide for their families. Zambians want to wake up early in the morning well nourished. Our people also want to have decent housing with access to clean water and sanitation.

Mr Speaker, Zambians want paved roads. God’s people do not want roads that flood every rainy season. Zambians do not want councils that have been given K2.4 billion to buy motor vehicles to keep Zambia clean but do not want to use these resources. Zambia wants reliable and renewable energy. Zambians above all want quality health and education. They also want a prosperous and peaceful Zambia.

Mr Speaker, this is the vision of the people of Zambia. It is the vision of President Rupiah Bwezani Banda. It is the vision of the hon. Minister of Finance and National Planning. It is the vision of the MMD Government.

Mr Speaker, it is all in this wonderful Budget that my colleague has presented to the House. Therefore, I beg that each one us to support this Budget.

I thank you, Sir.

Hon. Government Members: Hear, hear!

The Minister of Home Affairs (Dr Mwansa): Mr Speaker, I thank you most sincerely for giving the opportunity to contribute to the Motion on the Floor of the House so ably moved by the hon. Minister of Finance and National Planning, Dr Situmbeko. Musokotwane. I congratulate my colleague and friend for a well delivered Budget Address.

This budget is very significant in many ways. Sir, 69.7 per cent of the budget will be financed from domestic revenue, 18.1 per cent will be financed by grants from co-operating partners and 12.2 per cent will be financed through domestic borrowing. This is a major achievement considering that not too long ago 30 to 35 per cent of the budget was financed by grants from co-operating partners. What this means in part is that our part is becoming more and more home grown and had it not been for projected lower revenues from the mining industry than earlier predicted, the contribution from grants and co-operating partners would have been much lower.

In terms of overall expenditure, the emphasis continues to be placed on areas that will grow the economy further, that is, agriculture, tourism, infrastructure development as well as areas that will improve the quality of life, that is, health and education. This high expenditure level earlier mentioned signifies our determined and decisive assault on urban poverty in general and our desire to promote rural development.

Since 2002, the economy has been growing steadily at the average of 5.3 per cent per annum, especially in the last 5 years or so. This is significant considering that the population growth rate has been around 3 per cent over the same period.

While the national population growth rate is at 3 per cent, that of Lusaka stands at 6 per cent. It is for this reason at least in part that the hon. Minister of Finance and National Planning has decided to meet the challenges of urban development by allocating the area sufficient funding. This year, there is a provision of K10 billion dedicated to alleviating problems of poor drainage and sanitation in Lusaka. This is over above the K214 billion proposed for urban and rural water sanitation nationwide.

Within the Ministry of Home Affairs, we will continue through the budget to improve the welfare of the men and women in security wings. We shall remain on course in the construction of both residential and office accommodation in order to meet demands of increased manpower levels. By the end of the first quarter of this year, more than 500 housing units for the Zambia Police Force will be completed. These housing units are in various locations nationwide. The Government will start a further construction of 1,000 housing units for the police this year.

Mr Speaker, in April this year, the Zambia Police Force will recruit 1,500 young men and women…

Hon. Government Member: Hear, hear!

Dr Mwansa: … in order to increase levels of security in our country. The recruitment of policemen and women will be accompanied by the acquisition of requisite equipment so that we can have an efficient law enforcement institution that will quickly respond to distress calls by victims of crime.

Mr Speaker, through the Budget, we will strive to respond to challenges in the area of governance by improving the living standards and conditions of prisoners. This will be accompanied by the construction of new prisons and rehabilitating the existing ones. In addition, efforts to decongest prisons will be intensified through the recent introduced parole system on one hand and regularly releasing of inmates at Independence Day and on Africa Freedom Day on the other hand.

In the coming years, significant attention will be paid towards recruitment of prison officers. We shall also from available resources continue to issue National Registration Cards (NRCs) for all eligible Zambians. We shall this year intensify our mobile national registration exercise in order to ensure that every Zambian is captured thereby empowering all eligible voters. Government is currently holding discussions with the Electoral Commission of Zambia on the matter so that NRCs and voters’ card are issued at the same time or simultaneously.

Mr Speaker, the national budget is and should be seen not only as a vehicle symbol for development but also for unity. It must bind us together and not divide us. The budget is and must be seen as a collective declaration of what we want for our country. The budget is and must be the bearer of a collective aspiration of a prosperous and poverty free Zambia. This year, the budget is a good attempt at achieving or realising these national aspirations.

Mr Speaker, we live today under extraordinary circumstances brought about by the global economic difficulties. We need extraordinary responses to the extraordinary circumstances we have found ourselves in.

Under today’s challenges of low revenues from our traditional exports, low level of foreign investment inflows translating in low public expenditure, job losses as well as challenges resulting from climate change or global warning as well as the pressures on the exchange rate, there is no them and us divide. We are all in this together. Our history teaches that when faced with extraordinary circumstances and challenges, the people of Zambia have to reason collectively and in unity to respond to those challenges.

In 1964, when faced with colonial power and justices and denial of opportunities, we rose together under the leadership of our founding fathers, the men and women to free ourselves. In 1965, barely a year after gaining our independence from colonial power, the neighbouring countries still under British rule rebelled against that government and declared unilateral independence. That was a hostile act necessitating border closure. The unilateral declaration of independence (UDI) threatened our survival as a young nation as our export and import route was now under the rebel government. The people of Zambia remained calm and in support of the government of the day in efforts to open up alternative routes for our exports and imports, hence the eventual construction of the railway line called Tanzania Zambia Railway (TAZARA).

In 1991, when our civil liberties which we gained in 1964 came increasingly under threat, again, we rose together and collectively regained those freedoms and liberties.

 In 1992, barely a year after the MMD came into power, the country was faced with an unprecedented drought which resulted in low crop yields in many parts. The people of Zambia collectively worked with the Government of the day to ensure adequate food supply and no single Zambian or resident starved.

In 2002, our country faced certain economic collapse when the Anglo-American Corporation pulled out of Konkola Copper Mine (KCM), our largest copper mine. Jobs were threatened directly in the mining industry and indirectly in the supply of goods and services industry to the mines. That single act by Anglo-American Corporation threatened the peace and security of our country.

The Government of the day and the people collectively, yet again, faced this challenge. Through team work and determination on the part of the leadership of the day on the one hand and the patience and support of the people  on the other, another investor, Vedanta Resources, was found to take over Anglo-American assets and save the country from economic collapse.

Mr Speaker, we have cited all these examples to show that the challenges we face today such as the economic crisis as it affects us, is not insurmountable. Like other crises we have faced in the past, it is not beyond our proven collective ability as a nation to rise above challenges and move on in unity.

Today’s challenges are a matter of national interest. The leadership at all levels such as the communities, churches, non-governmental organisations (NGOs), labour movements, professional organisations and the people they lead, should respond to these challenges, negotiate the bends, climb the mountains and cross the valleys together. Then after the long journey, we shall safely arrive together.

I am a firm believer in the collective power of the Zambian people to rise above difficulties, confront challenges and find solutions together.

Hon. Member: Hear, hear!{mospagebreak}

Dr Mwansa: We should draw upon our lessons from history and solve our current problems together. All of us have a role to play, whether we are farmers, teachers, health workers, construction workers, mine workers and others. We must learn to do differently that which we do everyday and put in extra effort and hours.

Hon. MMD Members: Hear, hear!

Dr Mwansa: Mr Speaker, this is not the time to discourage direct foreign investment. It is the time that we should attract foreign investment, individually and collectively, in all areas that will grow the economy.

If there are issues of concern about foreign investors such as labour and employment practices, including low emoluments to workers, we can tackle them through discussions involving all parties concerned. I note with dismay the targeted discouragement of foreign investment by certain ill-wishers.

Mr Speaker, let me conclude by making an appeal to all hon. Members of this House to support this year’s Budget because:

(a) it is an embodiment of our collective aspirations as a people to become a middle income country once again by 2030. This Budget has put us on the right path to reach that target.

(b) This year’s Budget has allocated significant resources to areas that will grow the economy further and bring relief to our people.

(c) This year’s Budget is largely home grown and the reliance on foreign funding is at its lowest in the recent past.

I thank you, Mr Speaker.

The Minister of Health (Mr Simbao): Mr Speaker, I thank you for giving me this opportunity to debate the issue of health as reflected in the Budget.

Interruptions

The Deputy Chairperson: Order! We do not seem to be listening. The hon. Minister may continue.

Mr Simbao: I wish to join other distinguished hon. Members of this House in congratulating the hon. Minister of Finance and National Planning for presenting the 2009 Budget, whose theme “Enhancing Growth through Competitiveness and Diversification” clearly demonstrates Government’s commitment to respond to the many challenges posed by the global economic crisis.

 I wish to commend the hon. Minister for increasing the budget allocation to the Ministry of Health from K973 billion in 2008, to K1.133 trillion in 2009. We would have definitely welcomed a bigger amount because we had budgeted for K1.5 trillion. This, however, presents an increase by K160 billion.

As a ministry, we accept this budget as allocated. We understand that other ministries also require resources to provide services which will contribute to improving the health status of our population.

Mr Speaker, I would like to talk about the concerns of some of the hon. Members of Parliament which were raised during the debate. These include inadequate drugs, high levels of malnutrition, funding allocated to HIV and Aids not yielding positive results, unfair distribution of health posts in the country and the outbreaks of Cholera being experienced in urban areas and not in rural areas.

 Mr Speaker, I wish to provide the following clarifications on the issues as mentioned above.

Inadequate Drugs in the country

Mr Speaker, since 2007, a lot of improvements have been made in the procurement of drugs and medical supplies due to the increased allocation to this specific area. The allocation to drugs increased from K80 billion in 2006, to K180 billion in 2007. This has further increased to K206 billion in 2009.

Mr Speaker, the availability of essential drugs at health centres was estimated at 68 per cent in 2008, while that of the referral hospitals was at 80 per cent. The increase, though marginal, will help to ensure that the drug availability increases to 75 and 85 per cent for health centres and referral hospitals respectively.

The establishment of a drug supply budget line, strengthening of the drug supply logistics management system and the refurbishment of Medical Stores Limited (MSL) to improve storage capacity, are all measures that have been put in place to improve the drug situation.

In addition, the ministry has entered into framework contracts with various suppliers in order to make drug supply more predictable. These are long term contracts for a period of two to three years. What this means is that we will request for drugs and they will be delivered without necessarily paying on the spot.  This will give us some predictability of some kind.

It is expected that with all these measures being put in place, the drug supply situation in the country will improve even further.

Mr Speaker, I will be paying an official visit to the MSL tomorrow. I would be very glad if hon. Members of Parliament, who would have time to spare, can accompany me so that they can go and see the stocks …

Mr Magande: What time?

Mr Simbao: 1130 hours.

… of the drugs at MSL. They will be able to ask any questions and see for themselves the system that has been put in place for supplying medicine to every clinic and health centre in this country.

Mr Speaker, I have heard the heckling over transport and that can be arranged, but with no allowances. A bus can be arranged

Laughter

        Malnutrition

Mr Simbao: Mr Speaker, in 2007, the Zambia Demographic and Health Survey results, showed improvements in stunting levels and children being underweight in Zambia from 46.8 to 45.4 per cent and 23 per cent to 14.6 per cent respectively.

Mr Speaker, malnutrition is not only caused by lack of food, but also poor feeding practices of children by parents. There are various types of foods such as proteins, carbohydrates and vitamins. These foods are available locally in the form of beans, kapenta, cassava, groundnuts, caterpillars and fruits such as oranges, guavas, mangoes etc. There is need for Zambians to make use of the locally available fruits because they are nutritious and can contribute towards addressing the problem of malnutrition.

Mr Speaker, there is a tendency to only look for meat or chicken and in the absence of that, fish because people believe that only those foods can be nutritious, but that is not the case. We have a lot of all these other foods in addition to what I have mentioned that can assist in making a baby healthy. Our experience at the UTH right now, is that it is not because of lack food, but the absence of parents from homes that is causing malnutrition. The simple reason is that when the parents are away, their children are not properly fed. We would like to appeal to hon. Members of Parliament to encourage parents with babies to ensure that their babies are brought up in a conducive environment. In that way, we will stop losing children in numbers. The children should be fed on time with the required quality and quantity of food.

In Zambia, we have observed the situation where mothers or parents appear to be well nourished, but their children are stunted or underweight. We wonder what might be the cause. How come the older people look well while young children are malnourished in hospitals? Therefore, we are encouraging the young mothers and other parents to take care of their children.

Funding allocated to HIV/AIDS

Sir, with regard to the issue relating to the funding allocated to the HIV/AIDS not yielding positive results, I would like to state that the increased flow of funds and stakeholder participation at all levels of society have yielded positive results in HIV/AIDS control as revealed by the 2007 Zambia Demographic and Health Survey results. The HIV/AIDS prevalence rate has reduced from 16 per cent in 2002 to 14 per cent in 2007.

  Further, the current Zambia Demographic Health Survey shows that Zambia has achieved the universal awareness levels of HIV/AIDS by increasing awareness levels to 99 per cent. The number of people on ARVs has increased from 137,000 in 2007 to 228,000 this year. By end of 2007, we had about 12,140 children who were on ARVs. Currently, over 15,000 children are accessing ARVs. The number of centres providing prevention of mother to child transmission (PMTCT) had increased from 678 in 2007 to 935 in 2008.

Sir, in addition, the Government, through the Ministry of Health strengthened pediatric anti-retroviral therapy (ART) through putting in place diagnostic machines which use dry blood spots for detecting the virus in the first few weeks of a child’s life. These machines are available in Lusaka, at University Teaching Hospital (UTH) and Kalingalinga Urban Health Centre and also, on the Copperbelt at Authur Davison Hospital. There is a carrier system in place and dry blood spots are collected from various health centres all over the country and transported to hospitals that have these diagnostic machines. The cost of the first line ARVs is estimated at US450 per patient per year and the target for this year is 228,000 patients.

Mr Speaker, people are querying why too much money has been put in the AIDS fight when in fact it is inadequate. If you multiply US$450 per patient per year by 228,000 patients, you will find that it is US$102,600,000 per year. If you convert that into kwacha, it will be K554 billion. Now, in this year’s Budget, we have only K306 billion out of which only K89 billion has been allocated to ARVs. This means that we have a very big deficit of about K350 billion and this will have to be filled up by our co-operating partners.

Madam Speaker, there was another question as to why the population seems to be very high of those that are living with the HIV/IADS virus. In Zambia, we have been fortunate because we are provided with free ARVs and that is why we are not losing a lot of people. 

Interruptions

Mr Simbao: Mr Speaker, in other countries, ARVs are very expensive and people cannot afford to buy them. Their governments do not provide free ARVs but this Government has managed to provide free ARVs.

Hon. Government Members: Hear, hear!

Mr Simbao: Mr Speaker, once again, let me appeal to the hon. Members to test for HIV/AIDS so that those who are infected can be able to access these free ARVs. In other countries, the population of those taking ARVs is going down because of the cost of the drug.  In Zambia, the population is going up. Therefore, people should not be surprised when they see a lot of money allocated to ARVs. We do not want a situation where patients should buy these ARVs because once we start doing that, we will lose a lot of people and our population will go down.

           Infrastructure

Mr Speaker, investment relating to infrastructure development is done in accordance with the developed standards…

Interruptions

The Deputy Chairperson: Order! He is talking about health posts and you are making noise. Please listen. Continue hon. Minister.

Interruptions

Mr Simbao: Sir, I was saying that investment in the sector relating to infrastructure development is done in accordance with the developed standard designs of how health posts, centres and hospitals should look like. The Ministry of Health has developed a three year Capital Investment Plan which was developed as a result of…

Interruptions

Mr Simbao: Mr Speaker, can I be protected.

The Deputy Chairperson: Order! I think the hon. Minister is right. Hon Members of the Executive should pay more attention. I am not saying that the ones on my left should not, but you see the dichotomy is that the hon. Minister is speaking and you are talking loudly. Give him a hearing.

The hon. Minister may continue.

Mr Simbao: Mr Speaker, I thank you for your protection.

Laughter

Sir, I am talking about health posts. I am appealing to hon. Members to hear me out.    We have developed a three-year capital investment plan, which we came up with, after a census we carried out on medical equipment, health service delivery, human resources, infrastructure and the utilisation of health services. The infrastructure budget has been decentralised to the provincial level. The selection of the location for the construction of health posts is based on population, distance to health facilities and disease burden. This year, the ministry is targeting a minimum of twenty-seven health posts.

Mr Speaker, the planning process in the Ministry of Health is done using the bottom-up approach. The locations of these health posts will be decided by the provincial health directors (PHDs).People at the headquarters have no say about where these posts must be constructed. Therefore, when a health post is constructed in one area and not another, it is not because of instructions from the headquarters, but from the province. If, therefore, a Member of Parliament is not satisfied with the location of the health post, he or she can go to the provincial health director and lodge in a complaint.

 Mr Speaker, as you are aware, most of the problems faced by the health sector are multi-sectoral by nature, whose solutions involve the participation of other sectors. These include the problem of Cholera outbreaks in the country. It has been noted that the Cholera prevalence rate is high in unplanned settlements of urban areas such as Kanyama Compound. This has been mainly attributed to the poor sanitation and drainage systems. Therefore, in order to curb the Cholera situation, multi-sectoral collaboration is of great importance. This involves the participation of all the sectors in the country. The problem of unplanned settlements is caused by the construction without permission from the government. These settlements usually lack support services such as water and sanitation, roads and drainages. The only way to address the Cholera situation in urban areas is to ensure that all the areas where people are constructing houses are provided with the necessary support services by the local authorities.

Mr Speaker, some of the key determinants of a health community are nutrition, literacy, good housing, health services, water and sanitation. My ministry intends to work with all the other sectors responsible for issues concerning health.

Mr Speaker, in line with the vision of my ministry, which is to provide equity of access to cost-effective quality health services as close to the family as possible, we intend to continue addressing the human resource crisis through training, recruitment and retention. We want to continue with the construction, rehabilitation and re-furbishment of our infrastructure. We also intend to construct theatre units in four clinics in Lusaka this year. This means that these clinics will be upgraded to first level hospitals. We are very positive that we will decongest UTH in this manner.

Hon. MMD Members: Hear, hear!

 Mr Simbao: Furthermore, we will continue in our efforts to address the major contributors to the disease burden such as HIV and AIDS, Tuberculosis, Malaria and non-communicable diseases. We had a meeting with the PHDs and it was suggested that we also find one clinic in Ndola and one Kitwe, which could be upgraded to a first level hospitals. Therefore, it is not just in Lusaka.

Mr Speaker, I thank you.

Hon. MMD Members: Hear, hear!
________

ADJOURNMENT

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

Question put and agreed to.
________

The House adjourned at 1935 hours until 1430 hours on Wednesday, 18th February, 2009.