Debates- Friday, 10th August, 2007

DAILY PARLIAMENTARY DEBATES FOR THE FIRST SESSION OF THE TENTH ASSEMBLY

Friday, 10th August, 2007

The House met at 0900 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

_______

BUSINESS OF THE HOUSE

The Minister of Defence (Mr Mpombo): Mr Speaker, I rise to give the House some idea of the business it will consider next week.

On Tuesday, 14th August, 2007, the House will begin with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. After that, the House will consider stages of any Bills already presented before the House.

On Wednesday, 15th August 2007, the business of the House will begin with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Thereafter, the House will consider Private Member’s motions, if there will be any. After which, the House will consider stages of Bills already presented.

Mr Speaker, on Thursday, 16 August, 2007, the business of the House will begin with Questions if there will be any. This will be followed by the presentation of Government Bills if there will be any. The House will then consider the Second Reading Stage of the National Constitutional Conference Bill No.26 of 2007. After that, the House will deal with any outstanding stages of Bills before it.

On Friday, 17th August, 2007 the Business of the House will begin with His Honour the Vice-President’s Question time. Then the House will consider Questions for oral answer if there will be any. This will be followed by presentation of Government Bills if there will be any. Thereafter, the House will debate the Fisheries Amendment Bill No. 29 of 2007, at Second Reading. Then the House will consider any outstanding business that might have not been concluded the previous day.

Mr Speaker, all things being equal, it is my intention, on this day, to move a Motion to suspend the relevant standing order to enable the House complete all business on the Order Paper and all matters arising there from to enable the House adjourn sine die.

I thank you, Mr Speaker.

______

QUESTIONS

STATISTICS OF ZAMBIAN AND EXPATRIATE WORKERS AT NFC MINING PLC IN CHAMBISHI

783. Mr Simama (Kalulushi) asked the Minister of Mines and Minerals Development how many Zambian and expatriate workers at the Non-Ferrous Corporation Africa Mining (NFC) Plc in Chambishi are in the following categories:

(a) management;

(b) general worker; and

The Deputy Minister of Mines and Minerals Development (Mr M. B. Mwale): Mr Speaker, NFC Mining Plc at Chambishi has a total of 2,183 employees broken down as follows:

Category Zambian Workers Expatriates

Management nil 5

General Workers 1,1919 135

Short-term contracts 124 nil

Mr Simama: Mr Speaker, is the hon. Minister aware that if we do not have any Zambian in the management, the company could be declaring less output figures so that the pay less tax?

The Minister of Mines and Minerals Development (Dr Mwansa): Mr Speaker, we are very concerned with Chambishi NFC and the fact that they have no Zambians in the management category. However, we do not think that this has to do with tax. We will be bringing this to their attention, as it is unhealthy because we have a lot of Zambians who are capable of working in this category just as it is the case in any other mining company. We do not see why NFC should not have any Zambian in the management category.

I thank you, Mr Speaker.

Mr Kambwili (Roan): Mr Speaker, the position of Manager- Human Resources was one of the positions that were Zambianised. How come at Chambishi an expatriate was given a work permit for a job that could be performed by a Zambian.

Dr Mwansa: Mr Speaker, as I said earlier, it is unhealthy for an expatriate to be performing duties of human resource management and we certainly would not like this to continue anymore. Just as we said when we answered a similar question on Konkola where we stopped an expatriate from performing duties related to human resource management, the same should apply to this company. Again, we will be bringing this to their attention.

I thank you, Mr Speaker.

REVENUE FROM MFUWE CONSTITUENCY FROM 2001 TO 2006

784. Mr Malama (Mfuwe) asked the Minister of Tourism, Environment and Natural Resources:

(a) how much revenue was collected from the following sources in Mfuwe Parliamentary Constituency from 2001 to 2006

(i) game management areas; and

(ii) national parks; and

(b) how much of the revenue above was re-invested in the local communities.

The Deputy Minister of Tourism, Environment and Natural Resources (Mr Kaingu): Mr Speaker, a total of K3.082 billion was raised from the Munyama and Mukungule Game Management areas in Mfuwe Constituency from 2001 to 2006.

Mr Speaker, the North-Luangwa and Northern half of South Luangwa National parks fall within the boundary of Mfuwe Constituency. A total of US$ 234,552 was raised from these national parks during the same period. The amount is equivalent to K956,972,160 at the K4,080 exchange rate.

Mr Speaker, K1.265 billion was re-invested in the local communities during the period 2001 to 2006, broken down as follows:

Category Amount (K)

Wildlife Protection 569,250,000

Community Projects 442,750,000
Community Resources

Board Administration 253,000,000

Total 1,265,000,000

Mr Malama: Mr Speaker, considering the amount of money the ministry raised from the national parks in Mfuwe Constituency, and the states of the roads that have been abandoned, I would like to find out what the ministry is doing to ensure that the Nabwalya and the Mpika-Mukungule roads are worked on so that more tourists can visit Mfuwe.

The Minister of Tourism, Environment and Natural Resources (Mr Pande): Mr Speaker, roads are a responsibility of the Ministry of Works and Supply, and not the Ministry of Tourism, Environment and Natural Resources. However, we sometimes work on the roads in the parks. Depending on the availability of resources, we look at the roads and if it is in the ministry’s jurisdiction, we can work on them.

Additionally, the Government gets half of the resources that are raised. Some of this money which remains within the community is supposed to go into projects. If the community is able to work on some of the roads, this money can be channeled to that purpose. For example, form such resources, the people of Nabwalya have been able to construct a clinic, a police station and have also been able to sponsor students to go for training.

I thank you, Sir.

Mr Muntanga (Kalomo): Mr Speaker, apart from the benefits of money going to the local communities in the national parks, people living in national parks, for example in Western Province, also benefit from ivory bangles and traditional skins, as this is important for tourism.

I would like to find out from the hon. Minister what will happen to this part of the culture since the department has banned the wearing of ivory bangles and traditional skins.

Mr Pande: Mr Speaker, the Government attaches great importance to the culture of this country. If traditionalists want to use certain items which are considered Government trophy, there is a procedure of applying to the Ministry of Tourism, Environment and Natural Resources or through the Zambia Wildlife Authority (ZAWA). A permit is given, if genuinely they are to be used for traditional purposes.

I thank you, Mr Speaker.

Mr Kanyanyamina (Kanchibiya): Mr Speaker, what measures has the Government put in place to improve the status of the roads in national parks that have not received any face lifts since independence, but rip money through wildlife and tourism.

Mr Pande: Mr Speaker, earlier, I indicated that maintenance of roads falls under the Ministry of Works and Supply. However, there are some areas like the Eastern Province, where we have, as a ministry, through co-operating partners, worked on some roads. At the moment, we have secured equipment through some co-operating partners in the Kafue National Park and we will start works on the roads soon. These are the measures that are in place.

I thank Mr Speaker.

DEPLOYMENT OF A MEDICAL DOCTOR TO CHIPILI CONSTITUENCY AND CONSTRUCTION OF A DISTRICT HOSPITAL IN MWENSE DISTRICT

785. Mr D. Mwila (Chipili) asked the Minister of Health:

(a) when a medical doctor would be sent to Mwenda and Chipili Health centres in Chipili Parliamentary Constituency; and

(b) whether the Government had plans to build a district hospital in Mwense District.

The Deputy Minister of Health (Dr Puma): Mr Speaker, Mwenda and Chipili rural health centres do not have enough facilities and equipment needed to support the efficient utilisation of doctors. Considering the critical shortage of doctors in the province, there are no immediate plans to post doctors to the two health centres.

Further, yes, there are plans to build a district hospital in Mwense District just as there are plans to build district hospitals in all the districts that do not have hospitals.

I thank you, Mr Speaker.

Mr D. Mwila: Mr Speaker, I would like the hon. Minister to tell us what types of patients are supposed to be seen by doctors. I would also like to know the criteria used by the Government to select areas where district hospitals should constructed.

Dr Puma: Mr Speaker, doctors are trained to handle higher levels of cases. As a result, we have categorised health service delivery into various levels. Health service delivery starts at community level, where we have community health workers. If the community cannot handle the case at the community level, the patient is referred to the health post level, and further, to the health centre level and finally, to the first level at the hospital.

Ideally, doctors are expected to work at first level hospitals where there are facilities that are available to conduct operations and other advanced health care services at that level.

In terms of the criteria that we use to identify a place to build a hospital, we look at the population. There is a specific size of population that we consider so that the service at that level can be well utilised by the community. At the same time, because of resource constraints, we look at the whole country then decide where we are going to begin the construction from. Currently, we are constructing hospitals in Kapiri Mposhi, Shang’ombo, Mkushi, Samfya and other areas.

I thank you, Mr Speaker.

Mr C. K. B. Banda, SC. (Chasefu): Mr Speaker, as a follow up to the answer given by the hon. Minister, could he kindly tell us when a district hospital will be constructed in Katete, especially that land was allocated to the ministry a long time ago for that purpose.

Dr Puma: Mr Speaker, as I indicated earlier, it is the intention of the ministry to have a hospital in each district in this country. However, because of resource constraints, this is being done in phases. I have already mentioned the hospitals that are already under construction. Once these are finished, we are already identifying more arrears where the hospitals will be constructed until every district in this country has a hospital.

I thank you, Mr Speaker.

Hon. Members: Hear, hear!

Mr Kapeya (Mpika): Mr Speaker, could the hon. Minister tell us what plans the ministry has to beef up the doctor requirements in all the institutions that are understaffed.

Dr Puma: Mr Speaker, hon. Members are aware that this question has been asked from time to time.

Mr D. Mwila: Just answer!

Dr Puma: Starting early this year, the ministry has set aside funds to ensure that we recruit more staff in our health facilities. At the moment, Treasury authority has already been given to recruit doctors and nurses to be posted to these facilities and the exercise has started. I am aware that there is already a doctor who has been sent to Mpika District Hospital.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Interruptions

CANALS DUG IN NALOLO PARLIAMENTARY CONSTITUENCY

786. Mr Mwangala (Nalolo) asked the Minister of Communications and Transport:

(a) how many canals were dug in Nalolo Parliamentary Constituency from 2003 to 2005, name by name;

(b) what the state of the canals at (a) above were at present; and

The Deputy Minster of Communications and Transport (Mr Mubika): Mr Speaker, I would like to inform the House that no new canals were dug in the Nalolo Parliamentary Constituency between 2003 and 2005. However, in 2003, two existing canals namely, Luandala and Kataba-Namemba were rehabilitated at the following costs:

Name of Canal Amount (K)

Luandala 9,960,000

Kataba-Namemba 9,960,000

Mr Speaker, in 2004, two canals were rehabilitated as follows:

Name of Canal Amount (K)

Mangundu 5 million

Luanda 5 million.

Sir, in 2005, no funds were released for works on canals in the Western Province.

Mr Speaker, due to inadequate funding, most of the canals in the province are not in good condition and require rehabilitation.

Sir, currently, the Government has no plans to dig more canals in Nalolo Parliamentary Constituency, but has an on-going programme of rehabilitation and maintenance of the existing canals.

I thank you, Mr Speaker.

Mr Mwangala: Mr Speaker, the hon. Minister is fully aware that agriculture in the Western Province depends on canals. Since it has taken two years without clearing agro-canals in the Western Province, how do we expect food production to increase in this respect?

Mr Mubika: Mr Speaker, just last week, Hon. Mwangala was at my office and he was informed that some funds have been released to the Western Province for the rehabilitation of about five canals in Nalolo Parliamentary Constituency.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Sinyinda (Senanga): Mr Speaker, as a way of encouraging people to produce more food, does the ministry contemplate providing tools instead of digging or rehabilitating canals.

Mr Mubika: Madam Speaker, we do not provide tools. We just provide the money.

Laughter

Hon. Members: Mr Speaker!

Mr Mubika: Mr Speaker,…

Laughter

Mr Mubika: I am sorry, Mr Speaker.

Sir, the ministry just provides money and contractors use the same money to buy tools to be used on the canals.

I thank you, Mr Speaker.{mospagebreak}

SUSPENDED OR DISMISSED COUNCIL SECRETARIES AND TOWN CLERKS IN THE SOUHERN PROVINCE

787. Mr Ntundu (Gwembe) asked the Minister of Local Government and Housing:

(a) how many council secretaries and town clerks were suspended or dismissed in the Southern Province, district by district from 2002, to-date;

(b) how many of those at (a) above appealed to the Provincial Appeals Board and who they were; and

The Deputy Minister of Local Government and Housing (Mr Kazonga): Mr Speaker, I wish to inform this august House that two town clerks and four council secretaries were dismissed from 2002 to-date while only one council secretary was suspended as shown in the table below:

District Number Suspended Number Dismissed

Livingstone                         nil                                 nil
Kazungula                         nil                                nil
Kalomo                              nil                                 nil
Choma                                nil                                  1
Monze                                nil                                2
Mazabuka                         nil                                 1
Namwala                            nil                                1
Itezhi-Tezhi                       nil                                 1
Siavonga                          nil                               nil
Gwembe                           1                                nil
Sinazongwe                    nil                                 nil
Total                                   1                                  6

Mr Speaker, among the dismissed, only Mr Brighton Tandabala and Mr Duncan Choma appealed to the Provincial Appeals Board while Mr Brian M. Ndumba was the only one among the suspended who appeared before the Board.

Sir, only Mr Brian M. Ndumba had his case ruled in his favour by the Provincial Appeals Board. Mr Brighton Tandabala withdrew his case that was ruled against him.

I thank you, Mr Speaker.

Mr Ntundu: Mr Speaker, I would like to find out from the hon. Minister why the Provincial Appeals Board reinstated Mr Brian M. Ndumba who brought a bus for Gwembe District Council to Lusaka without the blessings of the council? Up now, that bus has not yet gone back to Gwembe.

Hon. Opposition Members: Hear, hear!

The Minister of Local Government and Housing (Mrs Masebo): Mr Speaker, the procedure for dealing with disciplinary matters in local government is such that officers who are disciplined by their respective local authorities have the right to appeal to the Provincial Appeals Board. In this case, the affected officer appealed and the Appeals Board heard to his case.

aybe the council did not put up a good defence. Therefore, just like in any other case, even if one appeals to the courts, the Judge will take a decision. If the council is not satisfied, it has the right to appeal to the High Court.

I thank you, Sir.

LOCAL AND FOREIGN CONTRACTS

788. Mr Kambwili asked the Minister of Works and Supply:

(a) how many road contracts had been awarded from 2001 to 2006;

(b) how many of the road contracts above had been awarded to the following in the same period:

(i) local contractors; and
(ii) foreign contractors;

(d) how much of the money at (c) above had been externalised.

The Deputy Minister of Works and Supply (Mr Tetamashimba): Mr Speaker, I wish to inform the House that the total number of contracts awarded from 2001 to 2006 was 127.

Foreign contractors were sixteen as indicated in the table below which I will lay on the Table of the House.

The local contractors were 111 and it is also indicated in the table that I am going to lay on the Table of the House.

The total amount paid to foreign contractors for the period at (a) was K363,065,110,000.00.

The total amount paid to local contractors for the period at (a) was K250,171,680,000.00.

Part (d), about 25 per cent to 30 per cent is externalised and the rest is used on procurement of materials, machinery and labour. Details of externalised money can be obtained from the Ministry of Finance and National Planning or the Bank of Zambia.

I thank you, Sir.

Mr Tetamashimba laid the paper on the Table.

Hon. Government Members: Hear, hear!

Mr Kambwili: Mr Speaker, foreign contractors come with their equipment only and not the labour. Labour is provided by the Zambian people. Is the hon. Minister, therefore, thinking of introducing a fund where local contractors can obtain loans to buy machinery to avoid externalisation of money in the road construction sector?

Mr Tetamashimba: Mr Speaker, I wish to state that when some contractors bring in their employees, especially the professionals, they are paid in foreign exchange and the money is externalised to their bank accounts in the foreign countries.

Therefore, there is a provision in the law that when a big contractor is doing a job in our country, a certain number of people can be recruited from their country of origin. Those people are paid in foreign exchange. Obviously, they would not want to be paid in a local currency in a bank account here in Zambia. It pays across the board.

Mr Kambwili: I did not ask about that!

Mr Tetamashimba: Apart from that, I can say that the issue of labour falls under the Ministry of Labour and Social Security.

I thank you, Sir.

Mr Kambwili: I did not ask about that!

Mr Speaker: Order!

Mr Mooya (Moomba): Mr Speaker, I note that foreign contractors were paid K363 billion compared to K250 billion that was paid to local contractors and for local contractors, that is a huge amount of money. How is the ministry addressing the issue of poor workmanship being exhibited by the local contractors?

Mr Tetamashimba: Mr Speaker, first and foremost, you may wish to know that when the current hon. Minister came to the ministry, one thing he has tried to do and which he is doing at the moment, is to encourage the National Construction Council (NCC) to employ youths who are on the streets for a certain period of months after which they will form a company and the ministry will help them with the finances to work on the roads.

With regards to the Zambian contractors, I think there is nothing we can do except help these contractors send their people to the National Construction Council (NCC) for refresher courses. That is the only way these contractors can benefit from us so that their people can be in a better position to do the job.

I thank you, Sir.
Mr Speaker: The Hon. Member for Kantanshi …

Mr Kambwili: On a point of order, Sir.

Mr Speaker: On the Chair! Do you want to raise a point of order on the Chair?

Mr Kambwili: No, not on the Chair!

Mr Speaker: It is not done!

Mr Mukanga (Kantanshi): Mr Speaker, the hon. Minister has …

Mr Kambwili: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Hon. PF Members: Hear, hear!

Mr Kambwili: Mr Speaker, I rise on a very serious point of order. Is the hon. Minister of Works and Supply in order to answer to a question I did not ask him? The question I asked was: Was there any deliberate policy by the Government to put in place a fund for the local contractors to borrow money that they can use to buy equipment to avoid foreign contractors? However, he started talking about labour issues. Is he in order to answer a question which he was not asked?

Mr Speaker: The hon. Member of Parliament for Kantanshi may conclude.

Mr Mukanga: … agreed that there is poor workmanship on most of the projects that are being conducted by the local contractors. At whose expense are these works done in this country?
Mr Speaker: The hon. Minister of Works and Supply may also deal with that point of order as he replies.

Mr Tetamashimba: Mr Speaker, the Ministry of Works and Supply has no funds that it can give to anybody who wants to go into the construction business. If you want to be a contractor, all the banks are now asking people to go and borrow because the economy in this country is better than what it was in the past.

Hon. Government Members: Hear, hear!

Mr Tetamashimba: Therefore, for any contractor who wants money to buy equipment, the banks are advertising for loans everyday. I hope the hon. Member of Parliament will be in a position to tell his people in his constituency that money is available at the banks because President Mwanawasa’s Government has made it possible for the economy to be what it is today.

Hon. Government Members: Hear, hear!

Mr Tetamashimba: Coming to the question asked by Hon. Yamfwa Mukanga, I wish to say that the loser is obviously the tax payer. All the money that we budget for the roads comes from you, Hon. Yamfwa Mukanga. Therefore, the loser ends up to be you, as part of the Government. The loser is not the contractor.

However, I wish to say that in the agreement, there are clauses that state that if a contractor does a shoddy job, the consultant is not supposed to sign the certificate. If the consultant ends up certifying the works that the contractor has done his best, and yet nothing has happened, what normally happens is that the Government will pay the money. By the time you realise that the job was shoddily done, may be it is the time when the Auditor-General is asking questions.

So there is a provision that money is paid only when a consultant certifies the work, but where he certifies work that has not been done according to specification, then obviously the Government will lose money through the consultant who has certified the works.

However, efforts are being made by the hon. Minister to make sure that before payment, all the jobs are not only certified by the consultants, but also our officials in the provinces. The officials should confirm that the jobs are well done before the ministry can pay.

Hon. Members: Hear, hear!

Mr Tetamashimba: That way, it will be very easy for the hon. Minister not to endorse payment to a contractor who has done a shoddy job.

I thank you, Sir.

Mr Mwansa (Chifunabuli): Mr Speaker, I wonder whether the ministry is contemplating taking legal action against some of the consultants who have certified works that were shoddily done.

Mr Tetamashimba: Mr Speaker, I thank the hon. Member for that question which seeks transparency. When a consultant certifies works which are shoddy, it means there was some conniving to steal money from the Government. This is why the Auditor-General has always spoken out on such issues. I feel that, as a Ministry, we are just trying to find the best way to deal with such issues. Is the best way for us going to the Anti- Corruption Commission or to the Office of the Auditor-General?

The hon. Minister, from now onwards, will put his foot down and insist, through his workers in the provinces, the regional engineers, that the consultant sign the certificates when he is satisfied that the job has been done to our specifications. Only then will payment will be made.

Mr Speaker, I can assure the hon. Member that during the time His Excellency the President will allow us to be at the ministry, you will not hear after we leave the ministry that we had authorised payment to contractors whose jobs were shoddy. That, I can promise you.

I thank you, Sir.

Hon. Members: Hear, hear!

Mr Nkombo (Mazabuka): Mr Speaker, I would like to find out from the hon. Minister whether the Government has put measures in place to ensure that the contract terms in terms of timing of completion of these works is adhered to by the contractors and their counterparts, the consultants.

Mr Speaker, I ask this question in the light of the fact that the hon. Minister of Works and Supply last week, but one told this House that Mr Sable Transport had been paid some money to conclude the works on the Kasama/Luwingu Road, and yet on the other hand, last week, the hon. Minister was also on record as having expressed disappointment with Sable Transport for not completing the works on that road even when they had made that serious undertaking.

I would like to know what measures the Government has put in place to make sure that these contractors adhere to the time of completion of these projects.

The Minister of Works and Supply (Mr Simbao): Mr Speaker, first of all, I would like to make a clarification. The hon. Member who has asked the question knows very well that in the budget, we have only allocated K20 billion for the Kasama/Luwingu Road. The distance remaining is about 120 kilometres and K20 billion can only cover something like eighteen to twenty kilometres. What is required to complete the works is about K120 billion which we did not budget for. He knows that and so there is no way I could have made such an erroneous statement that K20 billion can complete the works on that road. I did state here and he did make a follow up question that I did discuss with Sable Transport who said that they would not take this money in the budget to the arrears. He is going to use this money on the road. I was on that road about seven days ago. He has prepared eighteen kilometres which is almost equivalent to K20 billion. What is the problem for him is cement. He needs 33,000 pockets of cement. I discussed with Hon. Mutati to assist him secure that amount of cement, but unfortunately, Hon. Mutati is away and so that has not happened.

Mr Speaker, Sable has promised to use the K20 billion in the budget on the road and not to take it against his arrears. That is what I said. It is important here for all of us to know that, in most cases, most of the contractors fail to finish their contracts in time because they are not paid all the moneys that they are supposed to be paid. We pay them some moneys and later we start having problems in paying them the rest.

Mr Speaker, fortunately, at least this year, most of the moneys that were allocated in the budget have been released, but unfortunately they are small amounts. For example, for the Kasempa Turn Off to Kabompo Road, we have something like 229 kilometres left and we were only apportioned K20 billion in the budget. We will only work on about eighteen kilometres when we have about 229 kilometres to do. So the contractors cannot finish that road this year, not even next year if we give them only K20 billion. In most cases, these contractors are not finishing on time because we are not allocating enough money to these projects as required.

I thank you, Sir.{mospagebreak}

CHAMBISHI COPPER SMELTER

Mr D. Mwila asked the Minister of Mines and Minerals Development:

(a) when the Chambishi Copper Smelter would be completed;

(b) how much money would be spent on the construction of the smelter;

(d) how many Zambians had been employed on a permanent basis;

(e) how many Chinese had been employed and what their qualifications were; and

(f) how many jobs would be created after the completion of the smelter.

Mr M. B. Mwale: Mr Speaker, the Chambishi Copper Smelter project will be completed in December, 2008.

Mr Speaker, a total of US$300 million (fixed asset US$200 million, floating asset US$100 million) will be spent by Chambishi Copper Smelter to construct the smelter.

Mr Speaker, the estimated annual production of the smelter is 150,000 tonnes of blister copper per year. At the peak of production, the smelter will process 300,000 metric tonnes of copper per year. This copper will be processed in the local refineries according to the London Metal Exchange specifications.

Mr Speaker, currently, there are 469 Zambians employed on renewable contracts by Chambishi Copper Smelter. It is expected that at the peak of construction, between 1,200 and 1,500 Zambians will be employed.

Mr Speaker, a total of 260 Chinese have been employed by Chambishi Copper Smelter and these are qualified engineers with experience in this type of installation of the ISA smelter. This is a new technology of highly energised electrodes.

The construction of the smelter is in three phases. Under Phase One, 1,000-1,500 Zambians will be employed while under Phase Two, which is during the turn-key period and Phase Three that will facilitate for normal operation jobs will be scaled down to 700-1,000 jobs after the completion of the smelter.

I thank you, Sir.

Mr D. Mwila: Mr Speaker, I would like to find out from the hon. Minister why the local contractors have not been involved in the construction of the smelter.

Dr Mwansa: Mr Speaker, my Deputy Minister has ably answered the question. This is a hi-tech construction to the most modern specifications and there were no Zambian companies to undertake this high level construction. That was the reason.

I thank you, Sir.

Mr Simama: Mr Speaker, is the hon. Minister aware that most of the Chinese people who are employed are just casual workers. Some of them are just dump truck drivers, bricklayers and others were digging when I went to visit the site. What is the ministry doing about this?

PF Members: Hear, hear! Quality.

Mr Speaker: Order!

Dr Mwansa: Mr Speaker, the expatriates working at this facility are highly qualified and the Ministry of Home Affairs took care in giving them work permits to ensure that they were qualified for the work they were to do. If they were found moving a wheelbarrow, surely, it does not mean that an engineer cannot handle a wheelbarrow. The Chinese culture of work is such that even engineers can do manual work. That is how they work and that is how they have advanced.

Mr Hachipuka (Mbabala): Mr Speaker, is it possible that the hon. Minister of Mines and Mineral Development can make available to this House a list of the 260 and their qualifications so that we can assess their degree of qualifications.

Hon. Opposition Members: Hear, hear!

Dr Mwansa: Mr Speaker, the Ministry of Home Affairs is very competent. My colleague Hon. Shikapwasha took care to assess their documentation which was made available before he gave them work permits. I am not sure that we could bring the information the hon. Member for Mbabala has asked for because I am not sure whether Parliament can do that.

I thank you, Sir.

Mr Mwenya (Nkana): Mr Speaker, I would like to find out from the hon. Minister of Mines and Mineral Development which hi-tech technology these Chinese are trained in that our local engineers from the University of Zambia (UNZA) and Copperbelt University (CBU) are not trained in.

Dr Mwansa: Mr Speaker, my Deputy Minister answered this question by saying that this is a highly energised electrode facility and we have no Zambians qualified in that type of engineering and that is why we have expatriates there.

I thank you, Sir.

Mr Kambwili: What type of Zambian qualifications? Surely, can you bring 265 expatriates to one project?

CONSTRUCTION OF A MODERN HIGH SCHOOL IN CHIPILI

790. Mr D. Mwila asked the Minister of Education whether there were any plans by the Government to construct a modern high school in Chipili Parliamentary Constituency.

The Minister of Lands (Mr Machila): Mr Speaker, there are no immediate plans to construct a school in Chipili Parliamentary Constituency, as there is one already. The only plan the ministry has is to continue improving the existing infrastructure at the school through the rehabilitation of the existing classrooms and teachers’ houses.

In addition, there are plans to construct extra classrooms as the school expands. Currently, the Member of Parliament may wish to know that there is a science laboratory that is under construction.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr D. Mwila: Mr Speaker, I would like the hon. Minister of Education to inform this House if this Government, the MMD Government, has constructed a high school in Luapula Province in the past six years.

Mr Machila: Mr Speaker, I believe that is, in fact, a new question.

I thank you, Sir.

Laughter

THE REVENUES OF ZAFFICO FROM 2001-2006

791. Mr Simama asked the Minister of Tourism, Environment and Natural Resources:

(a) how much ZAFFICO received from the sale of round logs from 2001 to 2006; and

(b) how much money ZAFFICO used to replant trees in the period above.

Mr Kaingu: Mr Speaker, the revenue ZAFFICO received from the sale of round logs from 2002 to 2006 was K27,295,844,000 broken down as follows:

Year Revenue Received (Kwacha)

2001/2002 2,920,298,000

2002/2003 3,910,014,000

2003/2004 5,264,616,000

2004/2005 7,172,365,000

2005/2006 8,028,551,000

Total 27,295,844,000

Mr Speaker, of the amount received in the period above, K13,243,201,287 was spent on replanting, broken down as follows:

Year Money Spent on Replanting (K)

2001/2002 949,501,145

2002/2003 1,747,817,817

2003/3004 2,947,459,561

2004/2005 3,369,518,867

2005/2006 4,228,903,897

Total 13,243,201,287

I thank you, Sir.
Mr Simama: Mr Speaker, is the hon. Minister aware that during the period he stated there was no replanting? There has been no replanting in the Zambia Forestry and Forest Industries Corporation (ZAFFICO). What measures is the ministry putting in place to assist ZAFFICO intensify replanting?

Mr Kaingu rose before Mr Speaker called on the Minister.

Laughter

Mr Speaker: Order! I wonder what that was all about.

Mr Pande: Mr Speaker, ZAFFICO has been replanting. As you can see from the figures, there has been an increase in the revenue and money spent on replanting. Almost 50 per cent of the revenue earned is going towards replanting. Additionally, the hon. Member wanted to know what the ministry is doing about encouraging ZAFFICO to replant. It is now like a song that we are always talking about replanting. Even ZAFFICO know that their continued existence depends on replanting. If they do not replant, there will be no ZAFFICO.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Mukanga: Mr Speaker, what mechanism has been put in place to ensure that the figures he has been mentioning correspond with what is on the ground? When did he last visit ZAFFICO because tree planting does not seem to correspond with what is pertaining?

Mr Pande: Mr Speaker, I have officers on the ground and besides, ZAFFICO has m plantations in other areas apart from the ones in Kitwe, Luanshya or Mufulira. You may be talking about the plantation in your area when there is replanting in Ndola and other areas. Therefore, do not consider what you see in your area as the overall picture relating to ZAFFICO replanting.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Msichili (Kabushi): Mr Speaker, I would like to find out what the Government is doing about the deforestation which is caused by charcoal burners.

Mr Pande: Mr Speaker, deforestation by charcoal burners is a big issue in the country and it was only yesterday that the Deputy Minister was appealing to hon. Members of Parliament to assist where they can. At the moment, we are trying to ensure that the cutting of trees is done on a sustainable basis. What we should bear in mind is that we cannot do without charcoal burning. We should realise that almost 80 per cent of the Zambian household depends on charcoal for energy. Therefore, the Government, at the moment, is trying to find ways of producing charcoal in a sustainable manner.

I thank you, Sir.

ABUSE OF CONSTITUENCY DEVELOPMENT FUND

792. Mr D. Mwila asked the hon. Minister of Local Government and Housing what measures the Government had taken to reduce the misuse of the Constituency Development Fund.

Mr Kazonga: Mr Speaker, I wish to inform this august House that the Government has taken a number of measures to reduce the misuse of Constituency Development Fund (CDF) by either council officers or, indeed, any other person entrusted to administer the fund. The following are some of the measures the Government has put in place:

Revision of Guidelines

In December, 2006, the ministry issued the revised guidelines on the management and utilisation of the Constituency Development Fund which was laid by the hon. Minister of Local Government and Housing on the Table of this House before, for the benefit of hon. Members of the House.

Frequent Audit of Councils’ Accounts

The ministry has undertaken a nation-wide audit of all CDF accounts to ensure proper utilisation of these public funds. Where misuse of funds has been identified, culprits have been prosecuted. Frequent audit of CDF has minimised the misuse of funds because of the fear of being prosecuted.

Training of Council Staff and Councillors in Financial Management

The ministry, with the assistance from co-operating partners, has developed Local Authorities Financial and Audit Manuals which documents will be used to train council staff and councillors in Financial Management.

A programme has already been drawn by the ministry and some co-operating partners to train trainers who will conduct trainings for council staff and councillors in all the provinces. The training programmes are aimed at enhancing accountability in local authorities.

Approval of Projects

The ministry will also ensure that projects to be funded are in line with the guidelines that were issued in December, 2006.

Mr Speaker, in addition, the penalty for misuse of Constituency Development Fund by the council is the suspension of the council or forfeiture of the grant. If it s a member of the Constituency Development Fund Committee or a council official who has abused CDF, legal action shall be instituted against the culprit.

I thank you, Sir.

Mr D. Mwila: Mr Speaker, last year and this year, this House approved a budget for Provincial Local Government officers for the purpose of auditing and inspecting the projects in the constituencies. I would like to specifically find out which councils have been discovered to have financial irregularities, and which people have been prosecuted.

Mrs Masebo: Mr Speaker, I do not have all the names of the councils off the cuff, but I am aware that Kaoma District Council is one such council. As regards last year, that is the only council I can think of, but I am aware that there could be two other councils in the country where some anomalies have found. We are taking action against them.

I thank you, Sir.

Mr C. K. B. Banda, SC.: Mr Speaker, could the hon. Minister tell the House when this year’s Constituency Development Fund will be released since the House will be adjourning next week.

Mrs Masebo: Mr Speaker, it was on the Floor of this House two weeks ago, that I indicated that the Ministry of Finance and National Planning are working very closely with my ministry in agreeing when this money will be released, taking into account the fact that Members of Parliament are here. They have, in the past, complained to me that whilst they are absent, sometimes these resources are not used according to their expectations. We have agreed with the Ministry of Finance and National Planning that before the hon. Members get back, the money will be released.

Thank you, Sir.

Hon. Members: Hear, hear!

Mrs Sinyangwe (Matero): Mr Speaker, I would like to find out whether we still want to maintain the 10 per cent administrative fee for constituency money that is released, because I believe if a constituency is given K200 million, K20 million is too much for administration.

Interruptions

Mr Speaker: Order!

Mrs Masebo: Mr Speaker, the guidelines that were issued in December, 2006 are going to be used in the implementation of the money that will be released this time around. We will analyse the situation and see whether they will really be any need for us to review the guidelines. I think it is important that Members of Parliament, as they go back to their constituencies, since they are part of the Constituency Development Committees, see how this money is going to be used. When they get back, they will give us a report and they will make suggestions wherever they feel that there should be amendments to the guidelines. However, for now, these are the guidelines that are going to be implemented.

Thank you, Sir.

Hon. Members: Hear, hear! Quality!

Dr Scott (Lusaka Central): Mr Speaker, I wonder if the hon. Minister who is a professor emeritus of Local Government could advise us whether we have been wrong in the Lusaka City Council by passing a resolution that the Auditor-General’s Office should scrutinise the management of the Constituency Development Fund, the Ward Development Fund, the Youth Development Fund and any other development funds that might be hallucinated by the Government from time to time. Is this not the correct way of ensuring proper accountability in local government?

Mrs Masebo: Mr Speaker, the Auditor-General, is supposed to audit, by law, any resources that are spent by any organisation, be it Government or quasi-government that uses funds that are approved by this House. The Auditor-General is not restricted. She can send officers anywhere. However, under the Local Government Financial Act, the Minister of Local Government and Housing has powers to appoint auditors under her ministry to audit books of accounts of the councils every year which must laid on the Table of this House.

The Minister of Local Government and Housing also has powers to send auditors for on spot audits for any resources that are sent to councils. We have powers to conduct audits both at local government and national levels through the Auditor-General’s Office.

Thank you, Sir.

Mr Kasongo (Bangweulu): Mr Speaker, some former and current hon. Members of Parliament have been associated with the same weakness. What action is the hon. Minister going to take against them, because the money was intended to improve the standard of living of our people?

Hon. Opposition Members: Hear, hear!

Mrs Masebo: Mr Speaker, the Local Government Act stipulates what action the Minister must take where there has been misapplication of resources. Some of them have already been mentioned by the Deputy Minister.

Firstly, if it is the council itself that has misapplied these resources, we have an option to dissolve or suspend that council. If it is a specific individual, be it an officer a Member of Parliament or councillor, we can, again, make that person pay back that money in addition to being prosecuted by the courts of the land. I think that there are enough provisions to deal with anybody who is found wanting in as far as the use of the Constituency Development Fund is concerned.

I have always indicated on the Floor of this House that it is very important that as Members of Parliament, we provide leadership to our local councils. It is very important that the guidelines are very clear. The very fact that we are Members of Parliament does not mean that this money belongs to us, no. We are major stakeholders because we are answerable to our people, as we have been elected to serve them.

I just want to appeal to the hon. Members as they go back to their constituencies, to, please, work with their councils. Help the council secretaries, town clerks and communities because they are there to help even myself as their Minister. I cannot be everywhere at the same time else. Help us.

Thank you, Sir.

Hon. Members: Hear, hear!{mospagebreak}

SHIFTING DISTRICT EDUCATION BOARD SECRETARY’S OFFICE TO SHANGOMBO BOMA

793. Mr Mwangala asked the Minister of Education:

(a) whether the Government had any plans to shift the Shangombo District Education Board Secretary’s office accommodated in a building at Senanga to Shangombo Boma;

(b) how much the ministry had so far spent on the rehabilitation of the building at (a) above; and

Mr Machila: Mr Speaker, under part (a), I wish to state that yes, the Government does have plans to shift the District Education Board Secretary’s (DEBS) Office to Shangombo Boma. This explains why the Ministry of Education embarked on the construction of an office block at Shangombo Boma. The office block is at gable level, but works have stalled because in 2006, the district was not funded for the project. However, the office of the DEBS has budgeted for the continuation of the construction.

Additionally, even when the project is completed, it may take sometime before the office finally shifts back due to lack of staff and accommodation at the Boma where there are no houses to rent. The ministry will allocate further funds to enable the DEBS construct some staff houses at the new Boma site when resources become available.

Hon. UPND Members: Hear, hear!

Mr Machila: Mr Speaker, the ministry has not spent any money on rehabilitation as there are no old structures at Shangombo Boma to rehabilitate. However, a total of K161,700,000 has so far been spent from 2002 when the project started. The project was first funded under Basic Education Sub-Sector Investment Programme (BESSIP) and later under Sector Pool.

Mr Speaker, Shangombo was until 1997, a part of Senanga District and was administered from Senanga Boma. There are still schools in Senanga West across the Zambezi River, which are administered from Senanga and are in similar circumstances. It is undisputable that the administration of the district from Senanga is proving to be difficult and costly for both teachers and the office of the DEBS, especially during the flood period when the West Bank is virtually cut off from the rest of the province. In addition, the location of the office in Senanga means that co-ordination between the Ministry of Education and other departments becomes problematic since they are not located in one place.

Thank you, Sir.

Mr Mwangala: Mr Speaker, is the hon. Minister aware that administering Shang’ombo from Senanga Boma for many years has been a burden on the children’s education as well as making it impossible for parents to consult teachers on a daily basis on the performance of their children?

Mr Machila: Mr Speaker, I can confirm that the ministry is, indeed, aware, but we are also alive to the fact that the circumstances, as they stand, are what we have to deal with. As and when resources will be made available, we will improve on the current situation.

I thank you, Sir.

Mr Sinyinda: Mr Speaker, I would like to find out from the hon. Minister why it has taken so long to build the offices in Shang’ombo. The construction started in 2002 and up to now the building is not finished.

Secondly, I would like the hon. Minister to confirm whether running the District Education Board Secretary (DEBS) from Senanga has contributed to the poor school performance of pupils in Shang’ombo District because there is not enough supervision from the office of the DEBS.

Mr Machila: Mr Speaker, the delay in the construction of offices since 2002, as stated, is largely due to the problems that have been faced by the contractors who are undertaking this job. However, I would like to assure the hon. Member of Parliament that the Government is very committed to this important sector. We are not satisfied with the situation. Therefore, when resources are available we shall attend to it.

I thank you, Sir.

COMPANIES LISTED ON THE LUSAKA STOCK EXCHANGE

Mr Ntundu asked the Minister of Finance and National Planning:

(a) how many companies were listed on the Lusaka Stock Exchange and what their names were;

(b) whether any of these companies risked being removed from the Stock Exchange; and

(c) which of the companies at (a) above had the highest listed shares and which ones had the least listed shares and how much the shares were worth in each case.

The Deputy Minister of Finance and National Panning (Mr Shakafuswa): Mr Speaker, I wish to answer as follows:

(a) there are sixteen companies listed on the Lusaka Stock Exchange, namely:

(i) African Explosives Plc
(ii) BP Zambia Plc
(iii) Cavmont Capital Holdings Zambia Plc
(iv) Chilanga Cement Plc
(v) Farmers House Plc
(vi) National Breweries Plc
(vii) British American Tobacco Plc
(viii) Investrust Bank Plc
(ix) Standard Chartered Bank Plc
(x) Zambian Breweries Plc
(xi) Shoprite Holdings Plc
(xii) ZCCM Investment Holdings Plc
(xiii) Zambeef Products Plc
(xiv) Metal Fabricators of Zambia Plc
(xv) Zambia Sugar Plc
(xvi) Pamodzi Hotel Plc

(b) the Lusaka Stock Exchange has not received any notification for delisting from any of the companies, neither has it revoked any proceedings to de-list any company; and

(i) Zambia Sugar Plc with a share price of K250.1;
(ii) Investrust Bank Plc with a share price of K45.00
(iii) Cavmont Capital Holdings Zambia Plc with a share price of K7.18

companies with the lowest shares deposited in the central shares depository are:

(i) ZCCM Investment Holdings Plc with a share price of K4,500.00
(ii) Shoprite Holdings Plc with a share price of K15,000.00
(iii) African Explosives with a share price of K1,650.00

I thank you, Sir.

Mr Ntundu: Mr Speaker, I would like to find out from the hon. Minister why the Government does not intervene when a company that is listed on the Lusaka Stock Exchange is about to be liquidated, but shares are still advertised.

Mr Shakafuswa: Mr Speaker, as I indicated in my answer, we have not had a company on which we have been notified that it has to be de-listed or that the Stock Exchange has deemed it fit that this company be removed. Therefore, I do not understand what you mean when you say that when a company is about to be liquidated because I am not aware of any such company.

I thank you, Sir.

Mr Muteteka (Chisamba): Mr Speaker, surprisingly, on the list of companies read out by the hon. Minister, I did not hear Celtel Zambia being mentioned. I am aware that this company is supposed to have sold 41 per cent of its shares to the Zambian public, but nothing has been done up to now. I would like to find out from the hon. Minister what measures are being taken to compel Celtel Zambia to sell the 41 per cent shares to the public.

Hon. Members: Hear, hear!

Mr Shakafuswa: Mr Speaker, I am aware that according to the licence that was given to Celtel Zambia by the Communications Authority, they were supposed to sell 41 per cent shares first to Zambia Telecommunications Ltd (ZAMTEL), but in the instance that ZAMTEL did not get the shares, they were supposed to be floated to the Zambian public. I do not know what has happened because from the time Celtel Zambia came into being, nothing has been done. We will get in touch with the Ministry of Communications and Transport and see how we can resolve this issue.

I thank you, Sir.

USE OF GOVERNMENT VEHICLES

796. Mr Imenda (Lukulu East) asked the Minister of Works and Supply:

(a) what the Government’s policy was on the movement of GRZ vehicles after working hours, weekends and holidays;

(b) which category of Government employees were entitled to personal-to-holder vehicles; and

Mr Tetamashimba: Mr Speaker, the ministry wishes to inform the House as follows:

(a) the Government’s policy on the movement of GRZ vehicles after working hours, weekends and holidays is that they should all be parked and will only move with the express permission of the Controlling Officers or Permanent Secretaries of the respective ministries in writing or pass to use the vehicles. This is also complemented by the signing of the log book, indicating the routes to be used, the time and date;

(b) the category of Government employees who are entitled to personal-to-holder GRZ vehicles are as follows:

(i) Cabinet Ministers, Deputy Ministers; Permanent Secretaries; and above;

(ii) Supreme and High Court Judges;

(iii) for the Defence and Security Officers, those from the rank of Colonel and above; and

(c) the Government does not spend any fuel on non-Government trips. Any expenditure on non-Government trips will be deemed misuse.

I thank you, Sir.
Mr Imenda: Mr Speaker, I would like to find out from the hon. Minister why a unit that used to monitor Government vehicles’ movements after working hours and weekends is no longer operational.

Mr Tetamashimba: Mr Speaker, I wish to inform the House that in the Government, we have a wing under the Ministry of Works and Supply called the Controller of Government Transport. This is the office that controls all Government vehicles. You may have come across people, along the roads, especially in Lusaka, with tops written CGT. These officers inspect Government vehicles that are on the road. If they discover that a person who is driving the vehicle has no authority, that vehicle will be impounded and will only be released when the Controlling Officer, who is the Permanent Secretary of that ministry, explains to the Ministry of Works and Supply why that vehicle was on the road. Normally, there is a charge for driving a Government vehicle outside working hours and during holidays when the vehicle is not supposed to be on the road.

I thank you, Sir.

Mrs Musokotwane (Katombola): Mr Speaker, I would like to find out from the hon. Minister if there were vehicles found on the roads outside working hours. If so, how many were impounded in the last twelve months.

Mr Tetamashimba: Mr Speaker, obviously, I cannot, off hand, know the number of vehicles that have been impounded or misused in the past twelve months because even in the past one month, I cannot manage. However, I want to say that it is misuse for people to use Government vehicles without authority.

As Members of Parliament, you should not think that the job of controlling Government vehicles is only on the shoulders of the Ministry of Works and Supply. If you find a person driving a Government vehicle while drunk, it is your responsibility to protect your property by reporting that person to the police. I also wish to inform the House that we have proposed ways of finding out which vehicle is moving from one province to the other. When this system is in place, people who are in the office of the Controller of Government Transport will be able to know that this vehicle, which is in Lusaka, comes from such a province and question how, therefore, it is in another province.

We are trying to put in place a mechanism to do that, but I wish to appeal to all hon. Members of Parliament that Government’s property is for everyone of us, whether we are working or not. If you see somebody misusing Government property, you have the right to report to the police and we shall definitely do something about that person.

I thank you, Sir.

GWEMBE DISTRICT HOSPITAL MORTUARY

797. Mr Ntundu asked the Minister of Health when the fridge at the Gwembe District Hospital Mortuary would be rehabilitated or replaced.

Dr Puma: Mr Speaker, the repairs of the 1 X 4 trays mortuary unit at Gwembe Hospital has already been worked on. Therefore, the Ministry of Health has no immediate plans of replacing the unit, as it is performing well.

I thank you, Sir.

Mr Ntundu: Mr Speaker, the answer that has been given by the hon. Minister is not correct. Why does this ministry want to make the Government favour other districts at the expense of others? Are you aware that bodies at Gwembe District Hospital decompose as a result of this fridge which is not working?

Dr Puma: Mr Speaker, at the moment, this is the information available at the ministry, but I will have to make a follow-up and brief the hon. Member accordingly.

I thank you, Sir.

ZAFFICO PLANTATION COMPARTMENTS

798. Mr Simama asked the Minister of Tourism, Environment and Natural Resources:

(a) how many plantation compartments were owned by ZAFFICO before some of its assets were sold to the Copperbelt Forestry Company Limited; and

(b) how many plantation compartments, in cubic metres, were for the following trees:

(i) pine; and
(ii) eucalyptus.

The Deputy Minister of Tourism, Environment and Natural Resources (Ms Tembo): Mr Speaker, a total of 1,934 plantation compartments were owned by the Zambia Afforestration and Forestry Industry Corporation (ZAFFICO) Limited before its assets were sold to the Copperbelt Forestry Company Limited in 2001.

There was a total of 1,436 pine compartments with a standing volume of 10.6 million cubic metres.

As for eucalyptus, there were a total of 445 eucalyptus compartments with a standing volume of 3.6 million cubic metres before the ZAFFICO assets were sold to the Copperbelt Forestry Company Limited.

I thank you, Sir.

HIGH COST OF PRODUCTION AND PRICIING OF ZAMBIAN PRODUCTS

799. Mr Chimbaka (Bahati) asked the Minister of Commerce, Trade and Industry:

(a) why the cost of production of most Zambian products was higher than that of similar products produced in neighbouring countries in the SADC region; and

(b) why some Zambian products such as sugar and cement were sold cheaply in other countries, but not in Zambia.

The Deputy Minister of Commerce, Trade and Industry (Ms Siliya): Mr Speaker, the cost of most Zambian products is higher than that of similar products produced in neighbouring countries in the Southern Africa Development Community (SADC) region for the following reasons:

(a) differences in economic structures of Zambia and other SADC countries. For example, the exchange rate parity may work against Zambian products if they are not on a par.

Products are cheaper in countries with weaker currencies than those with stronger currencies and this is true with products from Zimbabwe where cement, for example, is much cheaper than cement in Zambia on account of the weak Zimbabwean Dollar; and

(b) geographical location compounded by economies of scale tend to be in favour of products in SADC member countries that are close to the sea, as there is an incremental cost of bringing products inland from the sea which is the case with most Zambian products. The Government is, however, making serious efforts to address the issue of the high cost of local products through the Private Sector Development Programme where the bottle necks of doing business are being identified and removed.

The second part of the question was why some Zambian products such as sugar and cement are sold cheaply in other countries, but not in Zambia.

The pricing of products such as sugar and cement on the external market is determined by the dynamics of the international market. These products are produced in bulk in order to make economic sense and are primarily sold on the domestic market. The residue is what is sold on the international market.

However, the external market pricing of the residue is distorted by incentives such as subsidies. For instance, Brazil, which is a world producer of sugar, provides incentives to its sugar producers by devaluing her currency so that her sugar remains cheap and competitive on the international market.

Additionally, export products such as cement and sugar are not subject to Value Added Tax and enjoy special incentives such as the duty draw back scheme, which essentially reduces the cost of these products compared to those sold on the domestic market.

I thank you, Mr Speaker.

Hon. Members: Hear, hear!

Dr Scott: Mr Speaker, it is very pleasing that the Government has, at last, admitted that its feckless monetary policies are contributing to our inability to compete …

Hon. Member: Zoona.

Dr Scott: … but I am interested in another aspect which recently came to my attention. In Chipata, the price of diesel is K6, 300.00 per litre. In Mzuzi just across the border in Malawi, it is K4,100 per litre. The diesel in Malawi is from the same source, Indeni, as the diesel in Lusaka. Furthermore, you will find graders on the other side maintaining the roads, whereas, on our side they are hard to find.

Could the hon. Minister tell us whence this discrepancy and high cost element which has nothing to do with the exchange rate comes in because these are dollar prices or fixed kwacha prices. Where does this discrepancy arise and how is it going to be corrected?

Ms Siliya: Mr Speaker, first of all, let me explain that the competitiveness of our exports is determined by a number of factors and not just the exchange rates as we have repeatedly stated on the Floor of this House. Zambia’s exchange rate is determined by market forces and the Government has nothing to do with it. In some countries, the devaluing of the currency …

Mr Speaker: Order!

Business was suspended from 1045 until 1100 hours.

Ms Siliya: Madam Speaker, before business was suspended, I was saying that the foreign exchange parity is not the only instrument that determines the competitiveness of our products.

However, the difference in the pricing has a lot to do with the general economic structure of the country. The Ministry of Energy and Water Development has belaboured this point many times on this Floor, particularly, as it relates to the International Pricing Parity (IPP) as well as the tax structure of our economy in general.

I thank you, Madam Speaker.

Mr Mwiimbu (Monze): Madam Speaker, I would like to find out from the hon. Minister of Commerce, Trade and Industry, what incentives are given to the Zambia Sugar Company to enable them export sugar at a cheaper price than the price they are offering on the Zambian market.

Ms Siliya: Madam Speaker. In the statement, in answering the question by the hon. Member of Parliament for Bahati Constituency, I mentioned that the pricing of commodities such as sugar on the international market is determined using international prices and that is what contributes to the difference between the domestic and international price.

In terms of incentives, we have an Investment Promotion and Protection Agreement with the Zambia Sugar Company which is the same template of agreement that we use in determining the investment agreement with anybody bringing in a significant amount of investment to this country. If the hon. Member of Parliament so wishes, he could come to my office and have a look at the type of agreement we have with the Zambia Sugar Company.

I thank you, Madam Speaker.

Mr C. K. Banda, SC.: Madam Speaker, is the hon. Minister of Commerce, Trade and Industry aware that Chilanga Cement exports cement to Malawi which is in turn imported into Zambia and sold in shops in Lundazi at a highly inflated price, thereby, exploiting the poor people of Lundazi? If the hon. Minister is aware, are there any measures being taken to ensure that this exploitation is brought to a halt, as definitely, development projects are grinding to a halt because cement is sold at an exorbitant price.

Ms Siliya: Madam Speaker, we are aware of the problems of cement pricing in this country and our ministry is in constant discussion with Chilanga Cement over this issue. However, the long-term solution to this problem is further investment in the cement industry by the private sector, both locally and through foreign investment.

Obviously, the economy is doing well, and hence this high demand for cement so that we can put up so many developmental projects, particularly in the mining industry. The long-term solution, truly, is further investment in the cement industry in order to meet the current and future demand.

I thank you, Madam Speaker.

CONVERSION OF MWEKERA FORESTRY COLLEGE INTO A UNIVERSITY

800. Mr D. Mwila asked the Minister of Tourism, Environment and Natural Resources whether the Government had plans to turn Mwekera Forestry College into a university.

Ms Tembo: Madam Speaker, the Ministry of Tourism, Environment and Natural Resources has no intention of turning Mwekera Forestry College into a university. However, a close working relationship between the Mwekera Forestry College and the Copperbelt University already exists.

I wish to inform this House that the college is Zambia’s Forestry College in Mwekera, Kitwe.

I thank you, Madam Speaker.

Hon. Members: Hear, Hear!

Mr D. Mwila: Madam Speaker, I would like to find out from the hon. Minister whether she is aware that the students doing practicals have problems because the university is located in town and the practicals are conducted at Mwekera Forestry College.

Is the hon. Minister aware that it is expensive for the students to travel? If she is, what is the ministry doing about it?

Mr Pande: Madam Speaker, we are aware that the university is in town while the college is outside town. However, when it is time for practicals, transport is arranged by the college authorities for the students.

I thank you, Madam Speaker.

Mr Simama: Madam Speaker, is the hon. Minister aware that Mwekera Forestry College, which was built by Finnish International Development Agency (FINIDA) with very good infrastructure for university standards, is currently underutilised?

Mr Pande: Madam Speaker, the facilities at Mwekera Forestry College are very good. This means that the quality of education that our students are receiving is high and may be equivalent to that of a university. So, yes, we are aware.

I thank you, Madam.{mospagebreak}

LACK OF ACCOMODATION FOR THE SHANG’MBO DISTRICT HEALTH MANAGEMENT BOARD AND ITS EFFECTS ON THE HEALTH DELIVERY SYSTEM AND GOVERNMENT EXPENDITURE ON THE REHABILITATION OF THE FORMER SENANGA URBAN CLINIC BUILDING

801. Mr Mwangala asked the Minister of Health:

(a) when the Shangombo District Health Management Board, which is currently accommodated in the former Senanga Urban Clinic building, would shift to Shang’ombo Boma;

(b) what the effects of operating from Senanga were on the delivery of health services, considering that Senanga is 200km away from Shangombo; and

Dr Puma: Madam Speaker, whilst on the Floor, and before I come to this question, I would just like to clarify the issue that was on the Floor earlier. I have confirmed with the Director of Health that the fridge supposedly not working at Gwembe Mortuary is in fact, working. I would like to appeal to the hon. Members of Parliament to ensure that they visit their constituencies other than turning this House into a place where they can find out what is happening in the constituencies.

Hon. Government Members: Hear, hear!

Dr Puma: Madam Speaker, coming to the question …

Mr Ntundu: On a point of order, Madam.

Madam Deputy Speaker: A point of order is raised.

Mr Ntundu: Madam Speaker, I rise on a very serious point of order in this House. Is that hon. Minister …

Madam Deputy Speaker: Order! Stop that finger pointing, and speak through the Chair.

Interruptions

Madam Deputy Speaker: Order!

Mr Ntundu: Is the hon. Minister in order to tell this House that the fridge at the Gwembe District Hospital Mortuary is now working, when just a few days ago, I was in my constituency, and I can confirm that the fridge was not working? Is the hon. Minister in order?

Madam Deputy Speaker: The hon. Minister was challenged by the hon. Member that even though the hon. Minister had given the response that the mortuary fridge in Gwembe was working, in fact, it is not.

The hon. Minister did promise the House that he would have to find out and he has come back, after speaking to the Director of Health and re-confirmed that the mortuary fridge is actually working. At this point, the Chair does not see anymore challenge until the hon. Member comes back from the constituency with new information.

The Hon. Minister may continue.

Hon. Members: Hear, hear!

Dr Puma: Madam Speaker, in response to the question by the hon. Member for Nalolo,
Shangombo District was created from Senanga District in 1997. Due to the non availability of offices, staff houses, water, electricity, and other utilities in Shangombo District, temporary accommodation was offered at the former Senanga Boma Clinic, which they have now extended.

Currently, the first referral hospital is under construction, and is situated at Shangombo Boma bordering with Angola, leaving the seven health centres more accessible to Senanga Hospital than Shangombo. The construction of the hospital alongside fourteen houses for the staff is incomplete, and there is no provision for administrative offices. The relocation of Shangombo District Health Management Team would only be done once the infrastructure for the district is completed and ready for occupation.

Mr Speaker, there is a cost attached to travelling from Senanga to the health centres in Shangombo District to provide technical support, monitor and supervise health care providers. The costs are in terms of fuel, ferry charges and the many hours’ of waiting to cross the pontoon and allowances paid to staff. However, the major cost incurred is on the transportation and referral of patients to Senanga Hospital.

It should also be noted that even if the Shangombo Hospital is completed, 50 per cent of the health centres i.e. seven out of fourteen, will continue to refer patients to Senanga, which is more accessible than Shangombo Hospital, which is centrally located. In order to provide services closer to the household, the district will continue to pay part of their grant to Senanga for providing services to some of the population. The seven health centres will continue to refer patients to Senanga Hospital.

The population of the seven health centres put together is 37,275 out of the district total of 73,605, representing more than 50 per cent. With this scenario, one ambulance will continue to be stationed at Nangweshi for referral cases while another one will be stationed at Shangombo.

Madam Speaker, in the past years, most health facilities, including the Provincial Health Office in the Western Province, were supported by the Government of the Netherlands. Part of the package for the support was to improve the infrastructure in the various stations. Upon realising that Shangombo had inadequate office accommodation, Dr Paul Dielmens, a Dutch doctor, during his term of contract, initiated the extension of the offices. This was done at no cost on the part of the Government, as all the works were paid for by Dr Paul Dielmens.

I thank you, Madam Speaker.

Mr Mwangala: Madam Speaker, is the hon. Minister aware that the distance between the Health Centre in Shang’ombo and Senanga, which is 200 kilometres, has an effect on Government policy in delivering effective and quality services to the people of Shang’ombo.

Dr Puma: Madam Speaker, the ministry is aware. This is the reason, as a ministry, we embarked on the construction of this hospital so that the services are taken closer to the community. I am also aware that an ambulance that was donated by UNCR is located at one of the health centres and is servicing Shang’ombo to transport patients to Senanga.

I thank you, Madam Speaker.

Dr Kalumba (Chienge): Madam Speaker, could the hon. Minister state that it is not convenient or acceptable to continue the status quo of managing Shang’ombo from Senanga, as it contradicts the policy of decentralisation and risks the provision of quality health care. Could he also state that something is going to be done to secure funding urgently to manage Shang’ombo from within the district?

Dr Puma: Madam Speaker, I would like to mention that the situation is not unique for Shang’ombo. Most of the new districts that were created are in a similar situation, including Sinazongwe and Lufwanyama. These institutions are operating from the nearest district where there is enough accommodation. As a ministry, we are doing everything possible to source funds so that the districts can actually move to where they are supposed to be working from.

I thank you, Madam Speaker.

Mr Imasiku (Liuwa): Madam Speaker, from what the hon. Minister has said, it appears that Shang’ombo district is still under Senanga, because the hospital is not completed. Could I learn from the hon. Minister what measures have been taken to compel the contractor to complete this hospital which has been under construction for many years now. Actually, it could have been completed three years ago? What punitive measures are taken against this contractor?

Dr Chituwo: Madam Speaker, being the client that has been affected by the delayed completion of the hospital, the supervisor in all Government works is my hon. Colleagues the hon. Minister of Works and Supply.

Madam Speaker, last week, I shared this with the House the fact that the issue of the delays in the completion of Shang’ombo District Hospital had reached a stage where the Ministry of Justice was asked to intervene. Therefore, as soon as that is done, we foresee a situation where speedily, Shang’ombo District Hospital will be completed thereby.

I hank you, Madam Speaker

COMPANIES CONTRACTED TO SUPPLY SCHOOL DESKS TO SCHOOLS IN GWEMBE DISTRICT FROM 2002 TO-DATE

802. Mr Ntundu asked the Minister of Education:

(a) which companies were contracted to supply school desks to the schools in Gwembe District from 2002 to-date; and

(b) how much was paid to each company.

Machila: Madam Speaker, I would like to inform the House that the companies that were contracted to supply school desks, the names of the recipient schools, the number of desks received and the amount paid are as follows:

Company Name School Year Number of Desks Amount

Joysa Enterprises                Kalelezhi              2003                         40                          8,933,000
Joysa Enterprises                Nakasiika             2003                         40                          8,933,000
Joysa Enterprises                 Mabula                 2003                         20                          4,466,500
Joysa Enterprises               Gulumuntunga      2003                         20                           4,466,500
Lucy Springs Traders          Henga                   2005                         20                         6,400,000
Lucy Springs                        Kkutwa                2005                          20                          6,400,000
Lucy Springs                        Hamatuba            2005                          20                         6,400,000
Lucy Springs                        Chitongo              2005                          20                          6,400,000
Lucy Springs                        Siakazembwe    2005                         20                          6,400,000
Lucy Springs                        Simwami             2005                           20                          6,400,000
Lucy Springs                       Kanyenyengwe 2005                          20                          6,400,000
Lucy Springs                      Malobe                2005                         16                           5,120,000
Lucy Springs                      Kalelezhi              2005                          18                           5,760,000
Lucy Springs                       Gwembe Basic    2005                          22                           7,040,000
Total                                                                                                                         316 89,519,000

Madam Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr Ntundu: Madam Speaker, the issue of the Government paying money on shoddy works is getting out of hand and no one ...

Interruptions

Mr Ntundu: Madam Speaker, the problem with hon. Ministers is that they do not go to these offices to check what works go on.

Interruptions

Madam Speaker: Order! There should be no conversation here. Could the hon. Member please, speak through the Chair?

Mr Ntundu: Madam Speaker, through you, I would like to find out from the hon. Minister - although I am going to spare him because he is not the correct minister to answer this question – whether he has taken time to go and check the types of desks that have been supplied to the schools in Gwembe?

Madam Speaker, I would like to challenge the hon. Minister of Education, including the hon. Minister of Health to accompany me to Gwembe to go and check the types of desks that have been supplied to the schools. This is taxpayers’ money and we pay tax.

Madam Speaker: Order! What is your question?

Madam Speaker, my question is that has the hon. Minister taken trouble to go and inspect the desks? Is he also ready to go with me to Gwembe to go and inspect these desks for him to confirm that the Government has actually, paid this colossal sum of money for shoddy work.

Hon. Opposition Members: Hear, hear!

Mr Machila: Madam Speaker, I shall be more than glad to go to Gwembe with the hon. Member of Parliament if he is prepared to supply fuel and give me an allowance for the trip.

Laughter

Mr Machila: On a more serious note, Madam Speaker, the authority in the area that deals with education is responsible for ensuring that the works are properly done. I may also add that as area Member of Parliament, it is also important that not just Hon. Ntundu, but all us play an active role in bringing matters to the attention of the ministry. I have taken note of his concerns and I shall convey them to the substantive minister.

I thank you, Madam.

Mr Kasongo: Madam Speaker is the Hon. Minister of Education aware that what is obtaining in Gwembe is obtaining everywhere because those who awarded contracts are party cadres. The desks that they are making are of a sub standard …

Mr D. Mwila: Hear, hear!

Mr Kasongo: … to the extent that the Government is losing a lot of money. If he is aware, what measures is he going to put in place to ensure that only credible contractors are awarded contracts in order to save colossal sums of money which should be reinvested in other activities?

Mr Machila: Madam Speaker, the issue alluded to by the hon. Member of Parliament is a concern to the Government. As you are aware, the Government has been on the receiving side of malpractices by contractors in various sectors. You are aware of the efforts that are being made by the Minister of Works and Supply in terms of contractors in that area. Again, I have taken note of these concerns in respect to the supply of desks and I shall convey this to my hon. Colleague the substantive minister.
I thank you, Madam.

NUMBER OF EXPATRIATES GIVEN WORK PERMITS IN MINING COMPANIES

803. Mr D. Mwila asked the Minister of Mines and Minerals Development:

(a) how many expatriates had been given work permits in the following companies from 2005 to 2006:

(i) Luanshya Copper Mines Plc;
(ii) Mopani Copper Mines Plc; and
(iii) Chambeshi Metals Plc; and

(b) whether there had been expatriates working without work permits and, if so, what measures had the ministry taken to correct the situation.

Mr M. B. Mwale: Madam Speaker, a total of seventy-two expatriates were granted work permits in the companies listed in the question from 2005 to 2006 broken down as follows:

Mine                                          No. of Expatriates
Luanshya Copper Mines Plc                3
Mopani Copper Mines Plc                   56
Chambeshi Metals Plc                         13

As regards the number of expatriates working without work permits, I would like to inform the House that, there are no expatriates working in the companies stated in (a) above without work permits.

I thank you, Madam Speaker.

Mr D. Mwila: Madam Speaker, I want to find out from the Hon. Minister of Mines and Minerals Development whether his ministry works hand in hand with the Ministry of Home Affairs. It is like the Ministry of Home Affairs does things on their own without consulting the Ministry of Mines and Minerals Development. Do they work hand in hand to ensure that the right people are brought into this country to do the right jobs?

Dr Mwansa: Madam Speaker, the portfolio of granting work permits belongs to the Ministry of Home Affairs, but we work hand in hand to ensure that we do not get expatriates for jobs that Zambians can perform.

I thank you, Madam.

Mr Kambwili: Madam Speaker, if I got the Hon. Minister of Mines and Minerals Development correctly, he stated that during this period of time, only three expatriates were employed by the Luanshya Copper Mines. I would, therefore, like to find out whether the following names are expatriates or Zambian local employees:

(a) Mr Abinam from Finance;

(b) Mr Bethel, Chief Operations Officer;

(d) Mr Rajesh Kumar.

These people have been at Luanshya Copper Mines since inception. Are they Zambians or expatriates?

Dr Mwansa: Madam Speaker, the question is very specific. How many expatriates were given work permits from 2005 to 2006? In any case, the names he has provided and asked us to confirm whether they are Zambians or not, is really a new question.

I thank you, Madam.

Mr Chanda (Kankoyo): Madam Speaker, the issue of expatriates on the mines will keep coming to this House as long as we are not getting satisfactory answers from the Hon. Minister.

Hon. PF Members: Hear, hear!

Mr Chanda: I say so because some of us have interacted with these companies as senior union officials and we know what we are talking about. When is this Government going to be serious and safeguard the interest of the Zambians?

Hon. PF Members: Hear, hear!

Dr Mwansa: Madam Speaker, it is not our wish to bring in expatriates for jobs that Zambians can perform and we have made this point very clear. In the case of Mopani alone, there are five new projects going on there and these projects require the expertise which may not be available locally.

Additionally, there are contractual obligations between the suppliers of technology to construct, install and commission with the relevant mining companies and these are contractual so they should be fulfilled.

I thank you, Madam.

Mr Nkombo: Madam Speaker, I have a question for the Hon. Minister of Mines and Minerals Development, bearing in mind what he has just said that experts come and get permits at the expense of Zambians who we have trained with public finances. What measures has the Government put in place to ensure that experts that come, and I am speaking about people without colour, do not engage in racial and social malpractices such as smoking psychotropic substances or in local terms dagga or ganja as was the case with two employees of a company subcontracted by Albidon Mine in Mazabuka called Capital Drilling that were caught with a substantial amount of cannabis. All that happened to them was that they appeared before a subordinate court and then …

Madam Deputy Speaker: Ask the question you are narrating the entire story.

Mr Nkombo: Madam Speaker, I am trying to qualify my question by saying …

Madam Deputy Speaker: Ask the question!

Mr Nkombo: What measures has the Government put in place to police the behaviour of expatriates who discriminate against our locals because they feel they are racially superior and that they do not engage in social activities such as smoking dagga, commonly known as ganja?

Dr Mwansa: Madam Speaker, that sounds like a question for law enforcement and we have adequate laws and the Police Service to police and arrest people who break the law. In any case there is no evidence that expatriates in our mining industry engage in racialism or smoking dagga. I have never heard of that kind of incident.

I thank you, Madam.

MINE SUPPLIERS

804. Mr Kambwili asked the Minister of Commerce, Trade and Industry:

(a) what measures the Government had taken to protect mine suppliers; and

(b) how much money the following mines paid to local and foreign suppliers from 2002 to 2006:

(i) Mopani Copper Mines Plc;

(ii) Konkola Copper Mines Plc;

(iii) Lumwana Copper Mines Plc; and

(iv) Kansanshi Mining Plc.

Ms Siliya: Madam Speaker, mine suppliers are business entities spread out from various sectors of the economy such as the manufacturing sector, fabrication, provision of goods and services, etc. Therefore, in line with the Government’s market-oriented policies, all players in the economy, including mine suppliers, are allowed to compete with products from other countries in a spirit of fair competition.

However, in an instance where unfair competition has been proved to exist, the Government has put in place various policies, measures and legislation to address such situations. The following are the instruments put in place for companies such as mine suppliers to address different types of undue competition:

(i) anti-dumping, countervailing and safeguarding measures in the face of imports causing or threatening to cause injury to the suppliers; and

(ii) adjusting exchange rates to calculate the value of imports from Zimbabwe which is on a par with Zambian goods and services.

In addition, the Government enacted the Citizens’ Empowerment Act to provide overall protection to Zambians to give them the comfort of participating in business, which ordinarily, they could not participate in.

Madam Speaker, the amounts of money paid to the local and foreign suppliers by Lumwana Mining Company, Mopani and Konkola Copper Mines Plc respectively are as follows:

Period Mine Local Suppliers (US$) Foreign Suppliers (US$) Total (US$)

2005/2006 Lumwana 48,594,627.85 100,432,534.38 149,027,162.23

2002/2006 Mopani 1,471,840,963 478,462,981 1,950,303,944

2004/2005 Konkola 1,160,500,000 307,170,000 1,467,670,000

2006/2007 Kansanshi 133,270,492 16,350,940 149,621,432

I thank you, Madam.

Mr Kambwili: Madam Speaker, this year, this Government introduced a law to give tax rebates to mining companies when importing mining machinery and spares and they say this has not been extended to their contractors and suppliers. Do you not think that this is going to disadvantage the contractors and suppliers, as the mining companies will tend to order the equipment directly to enjoy that tax rebate as opposed to equipment that has tax from our local suppliers and contractors that will tend to be expensive?

Ms Siliya: Madam Speaker, the tax rebate offered to the mining companies and any other investors are contained in the Zambia Development Agency Act, but my ministry is working very closely with the Mine Suppliers Association - particularly on the Copperbelt - the ones supplying to the mines, to make sure that we try and build their capacity so that they can continue to do business with the mines.

Madam Speaker, in the long term, the solution is further investment in manufacturing because what makes the products of the Mine Suppliers Association uncompetitive is that most of them are acting as middle men and importing these products and then trying to resell to the mines and the mines have to make business decisions. If they can buy the same machinery by importing it at a cheaper price, like from South Africa, they will do that.

Madam Speaker, so as a long-term solution, the Government would like to encourage further investment in the manufacturing industry and this is why we welcome the Multi Facility Economic Zone on the Copperbelt to be put up by the Chinese so that we can encourage manufacturing in copper products so that our Mine Suppliers Association can, at least, reduce their cost of doing business and this will keep them in business for a long time with the mines.

I thank you, Madam.

Mr Chanda: Madam Speaker, I have difficulty appreciating answers coming from the Government. I wonder how it would be possible for Mopani to have paid local suppliers when major projects that were carried out in Mufulira, such as the Acid Plant, Oxygen Plant and ISA Smelter were done by expatriate companies. I would like clarification on this issue.

Ms Siliya: Madam Speaker, I am not sure what the hon. Member would like clarification on, but I would like to believe he is wondering how Mopani Copper Mines Plc paid more to the Mine Suppliers Association than to foreign suppliers. Well, I will illustrate my answer by comparing the Mopani Copper Mines Plc to Lumwana Mining Company which is under implementation phase right now. They actually paid, to foreign suppliers, over US$100 billion compared to US$48 million to local suppliers because they are, at the moment, importing a lot of machinery to set up the mines while Mopani Copper Mines has established itself and is doing more business now with the Mine Suppliers Association compared to their payments to foreign suppliers which were only US$478 million.

Madam Speaker, I wish to state that these figures were actually supplied to the Ministry of Commerce, Trade and Industry straight from the mining companies.

I thank you, Madam.

RESTOCKING OF TEAK TREES

805. Mr Simama asked the Minister of Tourism, Environment and natural Resources what measures the ministry had taken to restock teak trees in the Western and Southern provinces.

Ms Tembo: Madam Speaker, my ministry does not intend to restock the teak forests in either Southern or Western provinces. Research trials carried out some years back revealed that our teak forests do not fair well in plantation compartments. As such, it was found that establishing teak plantations would not be viable, hence the decision by my ministry to carry out silvicultural (tree husbandry) practices that encourage natural regeneration of teak forests in collaboration with local communities. These silvicultural practices include good harvesting methods and fire protection measures.

In addition, my ministry has purchased two four-wheel drive Toyota Hilux vehicles for Livingstone and Sesheke offices. These vehicles are used to monitor the exploitation of teak forests and carry out early burning in teak forests as a measure to promote natural regeneration.

I thank you, Madam Speaker.

Mr Simama: Madam Speaker, is the hon. Minister aware that besides the depletion of teak trees through selling and stealing, they are also depleting through a disease which attacks leaves, leading to wilting and eventually drying? What is the hon. Minister doing about this?

Hon. Opposition Members: Hear, hear!

Mr Pande: Madam Speaker, yes, we are aware and the ministry, through conducting research, is trying to see what can be done to solve this problem. Currently, there is a concessionaire who is in the Western Province who is working in collaboration with the ministry to conduct this research.

May I also add that on the regeneration of teak forests, further research is being carried out to see whether we can use other ways of regeneration apart from the natural one.

I thank you, Madam Speaker.

ALLOWANCES FOR POLICE OFFICERS

806. Mr Malama asked the Minister of Home Affairs how much money, in the form of allowances, was paid to police officers for patrolling roads when the President was travelling.

The Deputy Minister of Home Affairs (Ms Njapau): Madam Speaker, the police officers who are assigned for “route lining” when the President is travelling are not paid any allowance.

I thank you, Madam Speaker.{mospagebreak}

PRODUCTION OF MOTOR VEHICLE AND REVITALISATION OF THE SUPERSONIC RADIO INDUSTRY IN LIVINGSTONE

807. Mr Chimbaka asked the Minister of Commerce, Trade and Industry:

(a) when Zambia would begin producing its own motor vehicles for local use and export; and

(b) when the Supersonic Radio Industry in Livingstone would be revitalised to provide the Zambian market with local radio sets and for export to other countries.

Ms Siliya: Madam Speaker, in the 2006 National Budget, which was followed with Statutory Instrument No. 9 of 2006, the Government suspended duty to zero per cent for a period of five years on all machinery, fixtures and equipment, tools and motor vehicle parts used in assembly of motor vehicles. This measure was aimed at reducing the cost of assembling vehicles locally and attracted investors such as Tata Zambia.

To this effect, Tata Zambia has commenced assembling vehicles in Zambia for both domestic and foreign markets.

The Government is also encouraging firms to invest in the motor vehicle assembly lines, motorcycles and bicycles in the Multi-Facility Economic Zones(MFEZ), which have been created under the Zambia Development Agency Act No. 11 of 2006. Already, inquiries have been received from Chinese firms expressing interest to start assembling motor vehicles of varying classes locally.

On the second part of the question, the Government has no plans to revitalise the Supersonic Radio Industry in Livingstone as the business of doing business has been left in the hands of the private sector. However, through the Zambia Development Agency Act No. 11 of 2006, under the Multi-Facility Economic Zones plans are underway to encourage the development of High-Tech industries in the Lusaka South MFEZ and the High-Tech Industrial Park for China Nonferrous Mining Company (CNMC), Lusaka.

RELEASED BUDGETARY ALLOCATIONS

808. Mr D. Mwila asked the Minister of Finance and National Planning how much money, in terms of budgetary allocations, was released in 2005 and 2006 for Luapula Province.

Mr Shakafuswa: Madam Speaker, in 2005, funds amounting to K18,519,960,821 were released against a budget allocation of K19,667,726,018 and this represents a 94.4 per cent of budget releases.

As for 2006, K16,304,372,645 was released against a budget allocation of K18,708,077,974 and this represents a release of 87.2 per cent.

I thank you, Madam Speaker.

Mr D. Mwila: Madam Speaker, despite Luapula Province being underdeveloped, we have continued, as a province, getting peanuts from this Government. I want to find out from this Government the criteria they used in allocating the funds to each province or are they going to review the system which they normally use so that all the provinces will get an equal piece of the cake?

Mr Shakafuswa: Madam Speaker, it is very laughable for the Member of Parliament to think other provinces are given fewer resources than what is due to them.

Interruptions

Madam Deputy Speaker: Order!

Mr Shakafuswa: The Government allocates money on the basis of absorption and availability of resources. Monies which are released to the provinces are taken there because of the activities and depending on what Parliament has allocated. The hon. Member is a Member of this House and he knows it is just unfortunate that, maybe, he was not here the period he has referred to. He knows allocations come to this House and he knows what budget this House has.

To be very honest, you will find that apart from the monies which are shown, the ones I have mentioned are the provincial allocations. There are other monies which go to the province, through the Ministry of Works and Supply for the roads which are being done there. There are monies which go through the Ministry of Education for school infrastructure development. There are monies that are allocated through line ministries. If you put these monies together, you will find that a substantial amount of money is going to our people in the Luapula Province. This Government has the Luapula Province at heart because it is part of this big nation called Zambia.

If you want more money allocated, wait for the next budget, and you will see where we will remove the money so that we give the Luapula Province, because you have the powers as hon. Members of Parliament to do so.

However, to insinuate that one province is not given money, I think, is misleading the people of Zambia and trying to alienate the people of the Luapula Province, which is very wrong and should not be encouraged by hon. Members of Parliament.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Mwansa: Madam Speaker, I have noticed a reduction in the allocation of funding for the year …

Mr Mwenya: On a point of order, Madam.

Madam Deputy Speaker: A point of order is raised.

Mr Mwenya: Madam Speaker, I rise on a very serious point of order. I seek serious guidance from you. On two occasions, the hon. Minister of Mines and Minerals Development stood on the Floor of this House today and alleged that we do not have qualified Zambian engineers to participate in the construction of the Chambishi Metal Smelter, hence the reason for bringing in 260 Chinese. He, again, mentioned that seventy-two expatriates had been given work permits because we do not have, again, qualified Zambian engineers, and yet the University of Zambia and Copperbelt University are yearly offloading onto the streets, engineers in all fields. Most of them are unemployed. Further, the University of Zambia and Copperbelt University are internationally accredited high institutions of learning. Is he in order to create an impression that our graduates are half baked, inferior and cannot compete internationally, hence allowing expatriates to fraud the few employment opportunities that can be given to Zambian workers? I seek your serious ruling.

Hon. Opposition Members: Hear, hear!

Madam Deputy Speaker: Order! This is a very serious point of order. However, the Chair was right here when those issues were raised. The Chair does not recall the hon. Minister saying that there are no qualified engineers. The hon. Minister talked of specialised engineering, hi-tech and, therefore, that allegation cannot be taken by the Chair. The Chair, again, was here when the seventy-two expatriates were referred to and at that point, the Chair does not recall the mention of qualification and the hon. Minister stating that there were engineers. Therefore, hon. Members, let us listen and understand the tract (inaudible) raised that even as the hon. Minister was on the Floor.

For general guidance, if you feel that there is a misleading statement, you raise the point of order, there and then. This is the way we proceed. This is why we ask for points of order on procedure in the House. Immediately you feel misled, you stand up and correct the misleading statement.

The hon. Member may, please, continue.

Mr Mwansa: I am most obliged, Madam Speaker. I was saying that from the answer given by the hon. Minister, the budgetary allocation to the Luapula Province in 2005, compared to the 2006 allocation, seems to be reducing. They had allocated a lot more in terms of percentages to Luapula in 2005, and yet they have allocated less than they did the previous year, that is, about 84 per cent allocation in 2006. What led to the reduction in budgetary allocations to Luapula in 2006?

Mr Shakafuswa: Madam Speaker, we are allocate budgets when we allocate for projects. If we allocate certain moneys when the project is actually being implemented, you will find that more money is allocated. However, when that project is completed, you find in subsequent budgets lesser moneys are allocated. Yes, the money which was released might look smaller, but budgets are estimates. If you recall, we had elections in 2006 and a lot of resources were channelled towards elections. You find that since you have to meet that obligation, whether you want it or not, it affects the overall releases of the overall budget implementation. These are things we expect and since you who know the Budget and see how it is spent, you expect these things as the budget is implemented and executed.

I thank you, Madam.

SHIFTING OF DISTRICT AGRICULTURE OFFICE AT NANGWESHI TO SHANGOMBO BOMA

809. Mr Mwangala asked the hon. Minister of Agriculture and Co-operatives:

(a) when the district agriculture office at Nangweshi would shift to Shangombo Boma;

(b) what the effects of operating from Nangweshi were on the delivery of agricultural extension services and inputs to the peasant farmers in Shangombo District; and

The Deputy Minister of Agriculture and Co-operatives (Mr Mulonga): Madam Speaker, the District Agricultural Officer at Nangweshi will shift to Shangombo Boma when the infrastructure, that is, the office blocks and staff houses are provided for in Shangombo Boma like any other Government department in the district.

Madam, as regards part (b) of the question, Nangweshi is geographically centrally located compared to Shangombo Boma, which is in the corner of the district. Therefore, the delivery of extension services and agricultural inputs is much better from Nangweshi than Shangombo Boma.

Madam Speaker, with regard to part (c), the district office spends according to the approved budget annually. However, the district incurs additional costs on transport when officers attend Quarterly District Development Co-ordination Committee Meetings and occasional meetings called by the District Commissioner.

I thank you, Madam.

Mr Mwangala: Madam Speaker, is the hon. Minister aware that the District Agriculture Co-ordinator resides separately from his subordinates who are in Shangombo Boma and are without transport, making administrative co-ordination as well as delivery of agricultural extension services and inputs to the peasant farmers in the district very difficult?

The Minister of Agriculture and Co-operatives (Mr Kapita): Madam Speaker, the ministry is aware of the fact that the District Agriculture Co-Ordinator (DACO) lives away from his colleagues. However, we have said that as soon as accommodation is available at Shangombo and as soon as an office block has been constructed, DACO can always move to Shangombo. However, I am happy to say that currently, the operations in terms of delivery of goods and services is concerned, we are doing a much better job from Nangweshi than Shangombo although at the end of the day, when accommodation is available, we shall move. Currently, we are not being disadvantaged at all.

I thank you, madam.

Mr Kanyanyamina: Madam Speaker, in my Bemba language, we say uwalila mutule, bala mutula, meaning the one who cries for help must be helped. When will this Government help Shangombo with extension services because there is an alternative of camping? A camping facility would alleviate the suffering of the people of Shangombo. When will they make alternative measures to emergency services for the people of Shangombo? Please, heed the cry of Shangombo. We are tired.

Hon. Members: Hear, hear!

Laughter

Mr Kapita: Madam Speaker, I would like to thank the hon. Member for Kanchibiya for crying out for help for the small-scale farmers of Shangombo. Probably, before I answer that question, I would like to take advantage of this question to appeal to all hon. Members of this House, and more especially those from rural constituencies to take that same keen interest in the operations of my ministry in extension services provision, training and marketing because if they do that, they will be helping their own electorates in ensuring that they get the services from my officers. That concern is, to me, is very important and I will make sure that I work with the hon. Members to deliver the goods and services.

In terms of camping facilities, yes, Shangombo like Nakonde, Mpongwe, Lufwanyama, Nyimba and Mambwe are all new districts, including Chienge and Milenge in the Luapula Province. Being new districts, we have not definitely given them all that they require, but that is not to say we are not working. We are going to ensure that Shangombo District, like all other new districts, get their share of agriculture camping areas and we are able to send officers to the camps in Shangombo and in other new districts.

I thank you, Madam.

Mr Muntanga: Madam Speaker, there is a problem of transport and a misunderstanding between the local people and the ministry over officers staying in one corner of the district, such as, at Nangweshi and Shangombo districts. Is the ministry contemplating finding a central place such as Natukoma, which can cater for people in Nangweshi and Shangombo? The ministry has done this in the Southern Province, where the agricultural headquarters is in Choma and not necessarily at the provincial headquarters. If they do this, administration will be done properly. Is the ministry thinking of finding a solution to this misunderstanding since both Shangombo and Nangweshi are at the edge?

Mr Kapita: Madam Speaker, I would like to say that I have not yet consulted on that issue and so I will not confirm anything. However, I promise to find out from my Permanent Secretary because we believe that we are supposed to provide goods and services to the farmers and we shall do what is right for us to deliver those services. If it requires finding a central place, as we have done for the Southern Province, it will be done.

Let me take advantage, again, of this question. The next four years for us in agriculture are very critical because in State House, there is Mr Mwanawasa. I want to take advantage of the Mwanawasa presidency to advance the cause of agriculture in this country because we have a man who loves agriculture. We have a man who is committed to agricultural development and we have a man who wants to see a better rural area in Zambia.

Hon. Government Members: Hear, hear!

Mr Kapita: Madam Speaker, because of that, I am taking full advantage of this. That is why I am making all these appeals.

I thank you, Madam Speaker.

Hon. Government Members: Hear, hear!

FOREIGN INVESTORS/COMPANIES CONCESSIONS

810. Mr Ntundu asked the Minister of Finance and National Planning:

(a) how many foreign investors or companies enjoyed tax concessions and which are these;

(b) how much revenue the Government lost annually as a result of these concessions; and

Mr Shakafuswa: Madam Speaker, tax concessions do not only apply to foreign companies, but also to local companies undertaking activities for which tax concessions are given. These concessions are either in the form of income tax or trade concessions.

Madam, with regard to concessions under income tax, there are nine companies enjoying this type of concession and these are mining companies. The following are the companies:

(i) First Quantum Mining and Operations Limited formerly Bwana Mkubwa Mining;
(ii) Konkola Copper Mines Plc;
(iii) Chambeshi Metal Plc;
(iv) Luanshya Copper Mine Plc;
(v) Chibuluma Mine Plc;
(vi) Kansanshi Mine Plc;
(vii) NFC African Mining Plc;
(viii) Mopani Copper Mines Plc; and
(ix) Lumwana Copper Mine Plc.

These companies enjoy concessions in the form of a company tax rate of 25 per cent instead of the general company rate of 35 per cent. They also enjoy concessions in the form of mineral royalty at the rate of 0.6 per cent instead of the general rate of 2 per cent which was revised to 3 per cent in the 2007 Budget.

Madam Speaker, in terms of trade-related tax concessions, there are over 800 companies, both foreign and local that enjoy concessions. These concessions are based on the description of goods, as provided for in the Customs and Excise Act. They include goods under relief or specific statutory instruments approved by the Ministry of Finance and National Planning, suspension of duty for mining rights holders, suspension of duty on medical and all agricultural inputs and equipment, suspension of duty on import and equipment for investment approved by the Zambia Investment Centre now under the Zambia Development Agency (ZDA), suspension of duty on insecticides for the treatment of mosquito nets and selected items used in the manufacture of cement, roofing sheets, textiles and clothing sectors.

Madam Speaker, this is generally aimed at reducing the cost of doing business so that companies operating domestically can remain competitive on the international market.

(b) The revenue forgone by the Government as a result of the tax concessions from January to December, 2006 was K93.78 billion. As a result of trade tax related concessions, the Government loses, on an annual basis, the following revenue:

Year Revenue lost

2001 K700 million

2002 K89.6 billion

2003 K190.5 billion

2004 K361.8 billion

2005 K196.3 billion

2006 K198.1 billion

Total K1.37 trillion

(c) At the moment, Bwana Mkubwa and Kansanshi are paying company tax, but most of the mining companies still have tax losses carried forward. As soon as the losses are extinguished, they will start paying company tax. As regards mineral loyalty, all the companies enjoying the tax concessions involved in mining production are paying the loyalty tax except Bwana Mkubwa. This is so because their minerals are mined in the Democratic Republic of Congo and only processed here in Zambia.

(d) As for the companies enjoying trade tax related concessions, they will start paying tax when the time for the concessions expire or when the Government policy changes; that is when the exempted goods become taxable.

I thank you, Madam.

Mr Ntundu: Madam Speaker, iyi boma musobela maningi, through you, I would like this Government to …

Madam Speaker: What does it mean?

Mr Ntundu: Madam Speaker, it means that this Government is not serious and they are playing too much. K1 trillion is a lot of money. I now realise why I am traveling on bad roads in Gwembe because this Government is dragging its feet to negotiate with …

Mrs Masebo: On a point of order, Madam.

Madam Speaker: A point of order is raised.

Mrs Masebo: Madam Speaker, my good colleague who is speaking has really pushed me to rise on a very serious point of order. Is the hon. Member of Parliament, who is a very senior member of this House and is doing very well this sitting- I see that he has improved compared to the last time, …

Laughter

Mrs Masebo: … that is why he came back- to malign this Administration, which is working hard even in his constituency and to use that kind of language which is not allowed in this House.

Interruptions

Madam Speaker: Order! The hon. Member used a foreign language in the House, but he gave us the meaning of what he said and the Chair believes that was the correct interpretation. As regards to maligning the Government, the Chair believes that it is important for Government Members to also stand up and …

Hon. Opposition Members: Malign!

Madam Speaker: …Not malign. Order!

Laughter

Madam Speaker: … give the correct picture of what the Government is doing when any hon. Member misleads the House in their own perception.

Hon Members: Hear, hear!

Mr Ntundu: Madam Speaker, before the point of order was raised by my very good friend named ‘Evergreen’, I was saying that I would like the hon. Minister to tell this House when the Government would enter into negotiations for all of these companies to start paying tax without excluding those bamene bakuchekelani.

Madam Speaker: Withdraw bakuchekelani.

Laughter

Mr Ntundu: Madam Speaker, I withdraw bakuchekelani.

Mr Shakafuswa: Madam Speaker, there is one issue I would like this House to know. Anywhere in the world where trade is done, there is give and take. We might have given a concession, for example, to Chilanga Cement Plc to bring in their bags duty-free for a purpose such as for the price of cement to be maintained at a certain level. This House, including the hon. Member, gave rebates on trade of mosquito-nets and other items, but there is a social cost to it. We said, ‘lets make the price of mosquito-nets cheap so that people are able to buy them for at least K10,000 each.’ This House approved this and therefore, helped to save lives.

It is only somebody who does not understand the purpose of this that can say we are doing nothing. I will give an example. You saw that we spent K2 trillion in trying to maintain the Zambia Consolidated Copper Mines (ZCCM) between the period of 2001 to 2006; an answer which was given here. So, how can you question why we let somebody come and invest in ZCCM when at that particular time it was not attractive for anyone to come and invest there. It is because of that background that we had to bend backwards?

Today, you can stand up and say it was a wrong decision while the copper prices are high, but at that time you would not have invested in that mine as well because it was not attractive.

The Government makes decisions on behalf of the nation which can result in losses, but it also benefits because the investment in these mines has created employment. Therefore, we have to look at the broader picture. With regards to renegotiating with the mining companies, you aware that we have already started doing this. Some companies have even indicated that after the negotiations, they will start paying the new rates that have been proposed in the budget. We are moving forward and we need the support of this House because even hon. Members of this House are part of the Government and they even approve the proposals that are made in the budget. Therefore, we have to move together.

I thank you, Madam.

Hon. Government Members: Hear, hear!

Mr Zulu (Bwana Mkubwa): Madam Speaker, I would like to find from the hon. Minister whether employing 235 Chinese general workers is part of the concession.

Mr Shakafuswa: Madam Speaker, I never mentioned the employment of 230 workers and as such, I will not comment on that issue.

I thank you, Madam.

SATURNIA REGINA PENSION SCHEME

811. Mr D. Mwila asked the Minister of Mines and Minerals Development how many employees from the following companies were members of the Saturnia Regina Pension Scheme:

(a) Konkola Copper Mines Plc;

(b) Mopani Copper Mines Plc; and

Mr M. B. Mwale: Mr Speaker, a total of 19,705 employees from the companies mentioned earlier are members of the Saturnia Regina Pension Scheme, broken down as follows:

Company No. of Employees

Konkola Copper Mines Plc                  10,838
Mopani Copper Mines Plc                     8,867
Copperbelt Energy Corporation Plc      nil
Total                                                    19,705

Madam Speaker, employees of the Copperbelt Energy Corporation (CEC) are not members of the Saturnia Regina Pension Scheme because the company has its own scheme known as the Copperbelt Energy Corporation Pension Trust Scheme which was established in 2000. All permanent and pensionable employees of the Copperbelt Energy Corporation belong to this scheme. The scheme was created as a body corporate and registered as a trust and is managed by the same fund managers that run the Saturnia Regina Pension Scheme, namely African Life Financial Services (Zambia).

I thank you, Madam.

Mr D. Mwila: Madam Speaker, the MMD Government has allowed these companies to come with their own pension schemes. For example, Konkola Copper Mines Plc and Mopani Copper Mines Plc have come and …

Madam Deputy Speaker: Can you, please, ask your question?

Mr D. Mwila: … I will ask Madam. I am still building up my question.

Madam Speaker, in this country, we have our own pension scheme, the Mukuba Pension Scheme. Therefore, I would like to find out from the Government why they have allowed these companies to come with their own pension schemes as a result of which Mukuba Pension Scheme is collapsing. Are there any plans by the Government to review the existing arrangements?

Mr M. B. Mwale: Madam Speaker, it is true that we have the Saturnia Regina Pension Scheme,
established under African Life Insurance. This scheme is not a foreign company. It is registered here in Zambia.

Madam Speaker, may I also inform the House that in this country, the pension schemes have been
liberalised. Any company is at liberty to subscribe to any pension scheme without any undue influence from the Government. However, we take note that as a Government, we have obligations to the Zambian people.

As regards Mukuba Pension Scheme, this is a pension scheme that was established when ZCCM Limited was in operation. Now that it has been privatised, the companies that are operating the mining companies are at liberty to join whatever pension scheme they may wish to.

I thank you, Madam.

Hon. Government Members: Hear, hear!

RENOVATION OF CHIPEPO HIGH SCHOOL

812. Mr Ntundu asked the Minister of Education when Chipepo High School and the teachers’ houses, which were in a dilapidated state would be renovated.

Mr Machila: Madam Speaker, there are numerous problems related to infrastructure at Chipepo High School and teachers’ houses since the school is old. As such, there is a need for rehabilitation works to be carried out.

The major rehabilitation works started as far back as 2003 when the school benefited with a sum of K250 million from the Highly Indebted Poor Countries (HIPC) initiative funds. All this money has been utilised in the said infrastructure works that could not all be completed at once. The exercise will continue as the ministry has prioritised rehabilitation, maintenance and construction of high schools in this year’s budget. It should be noted that works will have to be done in phases.

I thank you, Madam.

Mr Ntundu: Madam Speaker, I would like to find out whether there was an audit to the funds that were released to Chipepo High School through ZAMSIF?

Mr Machila: Madam Speaker, I risk misleading the House. I would need to refer to the officers in the ministry to confirm that this was done.

I thank you, Madam.

___________

BILLS

REPORT STAGE

The Trade Licencing (Amendment) Bill, 2007

The Matrimonial Causes Bill, 2007

Report adopted.

Third Readings on Tuesday, 14th August, 2007.

THIRD READING

The following Bills were read the third time and passed:

The Plant Breeder’s Rights Bill, 2007

The Penal Code (Amendment) Bill, 2007

The Appropriation (Amendment) Bill, 2007

_______

MOTION

ADJOURNMENT

The Minster of Defence (Mr Mpombo): Madam Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.

______

The House adjourned at 1237 hours until 1430 hours on Tuesday, 14th August, 2007.

Search form

You are here

parliament.gov.zm