DAILY PARLIAMENTARY DEBATES FOR THE FIRST SESSION OF THE TENTH ASSEMBLY

Thursday, 8th February, 2007

The House met at 1430 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

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MINISTERIAL STATEMENT

THE NEED TO AVERT POWER SHORTAGE IN THE COUNTRY

The Minister of Energy and Water Development (Mr Mutati): Mr Speaker, I am deeply honoured to have this opportunity to address this august House on the important subject of the power supply situation and plans that have been put in place to avert power shortage in this country.

Sir, efficient and reliable power supply on a sustainable basis is critical for economical growth, alleviating poverty and improving the economic well being of our people. The amount of power required to support the growth rate of the economy and access expansion over the next five to ten years is approximately 10 per cent per annum.

Although the Zambia Electricity Supply Cooperation’s (ZESCO) on-going rehabilitation and re-powering programme of existing hydro-plants when fully completed in 2008, will improve the power situation, Zambia will begin to face a severe power shortage within a year, thereafter. Expansion in all areas of power supply infrastructure from generation, transmission through to the final distribution level and rural electrification and improving efficiency and service delivery are urgent priorities. In order for the sector to meet these challenges, there is urgent need to improve the financial viability of ZESCO. Over the past several years, electricity pricing has not adequately covered the cost of electricity supply, which has led to the weak financial performance of ZESCO with its adverse impacts on the quality of service delivery and has become a major constraint in increasing  access to electricity.

Mr Speaker, the with regard to the Southern African Situation, the Southern African Eastern Africa Region electricity balance is now in short supply. The threat of power failure, particularly blackouts looms high whether it is in South Africa, Zimbabwe, Kenya, Tanzania or Zambia. The Southern African Region no longer has enough capacity to meet the increasing demand for power. With modest growth rates the region will need about 2,000 mega watts a year to sustain economic growth. Simply put, US$2 billion on an annual basis will be required to meet the growing power demand in Southern Africa.

Mr Speaker, on the other hand, the region has the world’s cheapest power, so cheap that infact, in the last twenty years, no new plants have been built because of the following reasons:

(i) Potential Investors have been wary of the high investment risk.

(ii) International funds have not been available for the region as other more competitive regions provided better returns on investment.

(iii) The existing electricity tariffs cannot support construction of new power plants. This has caused investors to shy away from investing in the region.

Sir, as regards, the Zambian situation, the looming power shortage is a major threat to Government’s effort to achieve sustained economic development in agriculture, tourism and mining sector, and also delivering electricity, not only to the household, but also to our schools, hospitals, clinics in rural areas as well as enhancing the provision of safe drinking water.

Mr Speaker to address this matter, Government has taken the first steps towards alleviating this looming shortage. Through the US$300 million Power Sector Rehabilitation Project being implemented by Zesco, an additional 210 mega watts will be available by the end of 2008 by up-rating machines at Kafue Gorge and Kariba North Bank Power Station. Through the commercialisation of Zesco, issues of unmetered customers and non-technical loses will be addressed to ensure efficient use of the power so that the little we have goes a long way.

Sir, given that our Fifth National Development Plan targets annual growth of around 8 per cent, means that Zambia requires quality and reliable electricity and increased capacity in the range of 200 mega watts per year to avert shortage.

Mr Speaker, the long-term solution lies in increasing capacity by building new plants. In this regard, we have made some progress in project preparation and the following key projects are at various stages of consideration:

Hydro Power Project

1. The 120 mega watt Itezhi-tezhi Hydro-Electric Project. Zesco and Tata will form a joint venture company to develop the project, which is expected to be commissioned towards the end of 2009 at an estimated cost of US$150 million.

2. The 360 mega watt Kariba North Bank Extension. Zesco and Synohydro with financing from China Exim Bank are working together to implement this project. It is expected to be commissioned in 2011 at the cost of US$250 million.

3. A 750 mega watt Kafue Gorge Lower Project. The Ministry is seeking to engage IFC as transaction adviser to develop the project as a public private partnership. It is expected to be commissioned in 2012. The cost of this development is estimated in the rage of US$800 to US$1 billion.

4. The 163 to 208 Mega Watt Kalungwishi River Hydro Electric project. We are currently evaluating two bids from Zambian firms with the view of choosing a preferred bidder who will develop this project. The expected commissioning date is 2012. The cost of development shall be made known once the bid evaluation exercise is completed.

Transmission Line Projects

Mr Speaker, the key projects include the following:

1. The Zambia Tanzania Kenya Power Interconnector. This is designed to transfer power up to 400 mega watt from Zambia and the southern region to East Africa and vice versa. One of the major benefits of this line is that it will resolve the problem of low voltages currently being experienced in Luapula and Northern Provinces by dropping off energy in Kasama. It is expected to come on line by 2010.

2. the 220 kv Zambia-Namibia Line has already been constructed. This will ensure an exchange of power of 200 megawatts between the two countries. Further, with this line in place, the issue of low voltages in Western Province should be a thing of the past;

3. we are looking at enforcing the Zambia-Democratic Republic of Congo line to firm up exports and imports up to 500 megawatts; and

4. the Kalungwishi Project has a transmission line component to it that will address the issue of low voltage being experienced in Luapula and this should be completed by 2011.

Mr Speaker, the overall investment requirements in hydro-generation and transmission line capacity expansion over the next 5 years is estimated to be US$2.1 billion and the bulk of which will be procured from the private sector.

Mr Speaker, in the power supply situation, we do not have many options. Under normal circumstances we should meet any power shortfall through imports since Zambia is inter-connected with other countries through the Southern African Power Pool. However, this option is not visible as our neighbours are in a worse situation than us and, in fact, need to import significant amounts of power. Further, the do-nothing option has not been considered because of its dire constituencies.

Mr Speaker, Zambia must, therefore, move quickly to develop projects I have mentioned above to avert the looming power shortage. However, for these projects to be developed substantial investments are required and the investors should recover their expenses. This is possible if only the price of power is set at a level where this is possible. A cost of service study recently conducted by ZESCO and the Energy Regulation Board show that the current tariffs can not support these planned new investment and have become a major constraint to increasing access to power. We must, therefore, create conditions to attract private investment into the sector. A viable energy sector is an important prerequisite for economical development. This matter, therefore, ought to be addressed with urgency to avoid continued severe load shedding and poor service delivery in the future as well as stifling of economic growth.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr Speaker: Hon. Members are now free to ask questions on points of clarification on the statement which has been made by the hon. Minister of Energy and Water Development.

Mr Hachipuka (Mbabala): Mr Speaker, arising from the presentation by the hon. Minister of Energy and Water Development, what percentage of Zambia Electricity Supply Company’s power production currently is being exported because there is load shedding?

Mr Mutati: Mr Speaker, the issues of power must be properly understood particularly as it relates to load shedding. The cycle of power is 24 hours. What happens in any 24 hour cycle is that between 6 a.m. and 9 p.m. everybody switches on the geyser and everything else and at that time, we have a shortage of power and, therefore, it is necessary to load shed or import power during that period. Again, at 1630 hours to 2100 hours, the cycle repeats, but the demand for power in between goes down. Since we have surplus capacity, it is only prudent that during the time when the demand for power locally is down, we should export the surplus into the region to enable us earn some money.

I thank you, Sir.

Dr. Scott (Lusaka Central): Mr Speaker, can the hon. Minister tell us why we are not financing this US$2.1 billion for expansion through institutions like the IBRD and World Bank which charge reasonable interest rates and have good terms and conditions for Kariba North Bank and Kariba Dam? Why are we not going to the private sector because not only we will incur the costs apart from commercial interest rates, but we will also incur commitment to export?

Mr Mutati: Mr Speaker, one of the critical elements is financing appropriately the power expansion project because that will have an impact on the tariff. What we have done for Itezhi-tezhi, for example, is to put in as much equity in the development of this particular project and only borrow on a concessionary basis the balance in order to keep the tariff impact long.

Secondly, in the case of Kafue Lower, we have said we have approached IFC which is a sub-set of the World Bank and by going through IFC we are going to have access to cheap concessionary and long term financing. The basis of this is to keep the cost of financing of this project as low as possible so that we do not push up the tariff unnecessarily.

In the case of Kariba North Bank Extension, we have engaged colleagues from China through the Exim-Bank who are going to provide us with a combination of concessionary loans and below commercial loans in order to keep again the overall cost of the development. We are doing the correct thing.

I thank you, Sir.

Mr Sinyinda (Senanga): Mr Speaker, I am aware that even with the rehabilitation of the power station in Livingstone, Western Province is still suffering from black outs almost everyday. Why does the Government not consider seriously the establishment of a hydro-electric power at the Sioma Falls which I know is second to the Victoria Falls on the Zambezi River so that this power can be exported not only to Namibia, but to Angola as well?

Mr Mutati: Mr Speaker, there are two issues here. Firstly, we are putting the inter-connector between Victoria Falls and Katima Mulilo. One of the primary purposes of that inter-connector is to stabilise the voltage in Western Province. Secondly, in the field of power, proximity of the plant is not a key determinant. You can have a plant anywhere provided that plant is put at a site where it is most cost effective. Now, when we did our ranking, we found that Sioma Falls on per unit basis was much more expensive than Itezhi-tezhi, Kafue Lower and Kariba North Bank. For that reason, we will do a least cost first before we get to the high cost.

Thank you, Sir.

Hon. Government Members: Hear, hear!

Mr L. J. Ngoma (Sinda): Mr Speaker, having been categorical that the tariffs for ZESCO are too uneconomical to support foreign investment, can the hon. Minister state in this House that ZESCO wants to increase tariffs which are already beyond reach to most Zambians?

Mr Mutati: Mr Speaker, the Chief Executive Officer in Zimbabwe last week called a press conference over this whole issue of cheap power. What he said was very crucial. He said in Zimbabwe, it is costing them $90 to produce a kilowatt which they are selling at $5.They are importing power at 4 cents and then selling it at .02 cents. He said that the economics of this is that we have cheap power, but what cheap power does to you is that you can have happiness today, in 5 to 10 years time, the thing that you are postponing today will catch up with you. It is important to take decisions that will fall store for you to take unpleasant decision later on.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Mschilil (Kabushi): Mr Speaker, I would like to find out from the hon. Minister what measures the Government is putting in place for not offering tariffs to farmers on irrigation.

Mr Mutati: Mr Speaker, farmers that specifically fall under the Zambia National Farmers Union are currently negotiating with ZESCO on the discount, although the negotiations have not yet been completed.

I thank you, Sir.

Mr Lubinda (Kabwata): Mr Speaker the monies for electricity in Zambia have been a topical issue for a number of years. I would like to find out what the shifts from monthly metering to pre-paid metres have had on the cost structure of electricity. Could he also explain why it is that when there is power outage in other areas, the residents are informed, expect for the people of Kabwata where electricity is cut off without any warning taking to consideration the destruction it causes to equipment.

Mr Mutati: Mr Speaker, it is correct that the energy economics are shifting. We are going increasingly in pre-paid metres. One of the big advantages of pre-paid metres is that people consume as they go. We have found out that it helps, particularly, in reducing the outstanding amounts on ZESCO’s accounts.

Today, ZESCO is owed over K200 billion. The pre-payment is going to assist us get down this huge debt. As for the residents of Kabwata not being informed, we shall ask ZESCO to take this issue up.

I thank you, Sir.

Mr Mooya (Moomba): Mr Speaker, I note that there are four new plants and one of the new plants will be at Kariba North Bank. May I know if the existing Kariba Dam, especially the wall, is structurally found to be for further development?

Mr Mutati: Mr Speaker, in the original design of the Kariba Dam on the north bank, the tunnels for additional uses were already provided for. What is going to happen at Kariba North Bank is for us to fix into there the electrical mechanical plant that is required to generate power.

Through the Zambezi River Authority, we are on a continuous basis carrying out operations and maintenance so that we ensure that the Kariba Dam remains sound.

I thank you, Sir.

Dr Njobvu (Milanzi): Mr Speaker, the hon. Minister has not included rural electrification. May the hon. Minister tell this House the status of rural electrification?

Mr Mutati: Mr Speaker, the other key objective is to increase access to power, particularly in the rural areas. Starting last year, we have been providing separately a budget line for rural electrification. This year, we are going to continue providing satellite for rural electrification.

However, one of the challenges that we have is that we have too many projects that we started, just like in the road sector. Therefore, our primary strategy is to finish those three that we started before we embark on new projects. Therefore, we can have people that have access to power as opposed to people looking at ready cleared and poles planted without having access to power. So, we will carry on the programme as prudent as possible.

I thank you, Sir

Mr Imenda (Lukulu East): Mr Speaker, just yesterday, the Government assured us that energy will not be exported to neighbouring countries at the expense of local consumption. However, today, the hon. Minister told us that he is going to export energy to earn foreign exchange. In his reply could he also comment on what he said about the Inga  electrification?

Mr Mutati: Mr Speaker, let us take it clear, we are not exporting energy outside Zambia at the expense of the domestic market. Any export that we are conducting between 0900 hours, 1500 hours and after 2100 hours is during the space when we have surplus capacity and because energy is a continuous process, you cannot store it. Therefore, if you do not export it, you do not earn, you lose. So, the economics tell us that when you have surplus capacity, it is prudent for you to export and we only export when we have surplus.

I thank you, Sir.

Mr Bonshe (Mufumbwe): Mr Speaker, in rural areas generators constantly breakdowns and there are shortages of diesel.

Mr Speaker, in Mufumbwe we always have constant power outages; they switch off electricity at 2200 hours affecting even the hospital. I do not know whether there is something being done at the ministry to resolve the situation?

Mr Mutati: Mr Speaker, diesel generation of power is perhaps the most expensive source of power. On average, it will be costing us about 25 cents to generate a kilowatt and we are selling it at below 3 cents. Therefore, to provide it for 24-hour cycle, will only increase the burden going to ZESCO. ZESCO is trying very hard, at least, to maintain a certain level of power in diesel generation.

In the medium to long-term, the plan is to replace all those pipes that are diesel generated by connecting to the national grid.

I thank you, Sir.

Mr Hamududu (Bweengwa): Mr Speaker, I would like to find out from the hon. Minister whether the Zambian Government is planning to join in the Inga Hydropower Station in Democratic Republic of Congo with so much potential that we have locally.

Mr Mutati: Mr Speaker, there are potentially two routes on how you can procure power from Inga into Zambia. One of the routes is through Lubumbashi on to the Copperbelt. We have said that we are going to put an interconnection at the falls so that we are able to transfer power up to 400 mega watts through that falls which will originate from Inga.

The other route is what is being considered by our colleagues from Congo, Namibia, Angola and South Africa they used to call ‘development’. This is a major project that will probably cost US $3.4 billion. Our own position is that before we join the West COM Development,

let us deal with the projects that we have identified as least cost in Zambia before we look outside.  So, we are going to focus on the development in Zambia first before we go outside.

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QUESTIONS

RETENTION OF GOVERNMENT INSTITUTIONS INSURANCE BUSINESS WITH ZAMBIA STATE INSURANCE CORPORATION

254. Mr Nkombo (Mazabuka) asked the Minister of Finance and National Planning what immediate measures the Government had put in place to ensure that Government institutions retained their insurance business with the Zambian State Insurance Corporation to assure its sustainability and avoid its collapse.

The Deputy Minister of Finance and National Planning (Mr Shakafuswa): Mr Speaker, the Government has not put up any particular measure to ensure that Government institutions retain their insurance business with the Zambia State Insurance Corporation to ensure its sustainability and avoid its collapse. It would be against the market liberalisation for the Government to support only one institution in the country while there are many insurance companies in operation.

In this regard, Government institutions will choose from the market insurance companies that they feel provide efficient services at affordable prices. In view of this, the Zambia State Insurance Corporation is only encouraged to compete favourably with the other insurance companies and the company has been doing so otherwise, it would have already gone under.

I thank you, Sir.

Mr Nkombo: Mr Speaker, does the hon. Minister understand that the Zambia State Insurance Corporation is a Zambian company that is fully audited and is not permitted to handout checks like we see with the other competitors that are in the habit of practicing such tendencies. I would like him to give me an honest answer.

Mr Shakafuswa: Mr Speaker, if I heard the hon. Member clearly, I think the question borders on corruption. Therefore, I would encourage the hon. Member if he has got any such information to avail it to the relevant authorities. They will ensure that people who are doing underhand methods to get business to disadvantage other companies are brought to book.

I thank you, Sir.

Mr Chilembo (Chama North): Mr Speaker, I would like to find out from the hon. Minister if the Government owes any money to the Zambia State Insurance Corporation in unpaid premiums and if so, how much could it be?

The Minister of Finance and National Planning (Mr Magande): Mr Speaker, yes, the Government does, in fact, owe the Zambia State Insurance Corporation quite a substantial amount of money. Unfortunately, most of this debt accumulated when, exactly, what Hon. Nkombo wants the Government to do-  Government interfered in the business of the Zambia State Insurance Corporation by getting policy because they said it was their institution without paying premium and that is what we want to avoid. We are trying by all means to liquidate this huge accumulated debt.

I thank you, Sir.

Mr Mwansa (Chifunabuli): Mr Speaker, from the answer given by the hon. Minister, it is quite clear that the Zambia State Insurance Corporation was created by the Government itself. If the ministry or the Government has problems with its operations, would it not be much better to privatise it before it goes under than to leave it to the whims of economics and lead to losses for the people working there and the public which has put insurance money there?

Mr Magande: Mr Speaker, we do not intend to privatise the Zambia State Insurance Corporation because we already have a lot of private insurance companies. This particular parastatal has been able to operate in this competitive market and has been a profitable venture. So, we are not going to privatise it.

Hon. Members: Hear, hear!

Mr Magande: Let more private companies come and compete with the Zambia State Insurance Corporation.

I thank you, Sir.

Hon. Members: Hear, hear!

Mr Kambwili (Roan): Mr Speaker, I would like to find out from the hon. Minister what has happened. We have seen, in the recent past, that a lot of Government parastatals have shifted their insurance from the Zambia State Insurance Corporation which is supposed to be part of their parastatal company to a private company, Professional Insurance. What is the reason behind this shift? For instance, ZESCO has taken its insurance to Professional Insurance and recently TAZAMA Pipe Line and Indeni have also taken their insurance to Professional Insurance. I would like to find out from the hon. Minister what has led to this.

Mr Magande: Mr Speaker, the decision of how to conduct business by these parastatals is a boardroom decision. We have not made a policy, as Government, that they should abandon the Zambia State Insurance Corporation. So, we are not privy to that kind of detailed information.

I thank you, Sir.

CONSTRUCTION OF A NEW POLICE STATION IN SENANGA

255. Mr Sinyinda (Senanga) asked the Minister of Home Affairs when the Government would consider building a new police station in Senanga to replace the dilapidated one.

The Deputy Minister of Home Affairs (Ms Njapu): Mr Speaker, the building of the new police station has been included in the Fifth National Development Plan from 2006 to 2010 under the Public Safety and Order Sector, Infrastructure Development.

Mr Speaker, within the sector, the police stations will be built or replaced as and when need arises and funds released accordingly.

Mr Speaker, as for Senanga Police Station, the Government has taken an interim measure of releasing K46, 064, 000 to rehabilitate the station. Mulilakwenda Enterprise is the company contracted to carry out renovations and they are already on site.

Sir, apart from the provisions of infrastructure development in the Fifth National Development Plan, the Zambia Police Service has also made proposals in the 2007 Budget for the rehabilitation of police camps.

I thank you, Sir.

FEASIBILITY STUDY ON UPGRADING THE KASAMA-KAPUTA ROAD

256. Mr Sikazwe (Chimbamilonga) asked the Minister of Works and Supply:

(a) whether a techno-economic feasibility study had been carried out on the upgrading of the Kasama-Kaputa Road; and

(b) if not, what the reasons for not carrying out the study were.

The Deputy Minister of Works and Supply (Mr Tetamashimba): Mr Speaker, the ministry has not yet carried out a techno-economic feasibility study for the upgrading of Kasama-Bulaya-Kaputa Road although there was a provision of an amount of ZMK750 million in the 2006 Budget. The study could not be undertaken because the Ministry of Finance and National Planning did not release the funds to the Ministry of Works and Supply.

I thank you, Sir.

Mr Sikazwe: Mr Speaker, following the recent work plan from the RDF for 2007, 2008 and 2009, this project has not been in their plan. When is the work plan going to be realised and when is the money which was planned for going to be utilised?

Mr Tetamashimba: Mr Speaker, when estimates are presented by the hon. Minister of Finance and National Planning and the Budget is approved, it does not necessarily mean that money is in the bank and can be given to any road infrastructure. That is just an estimate and it depends on whether the Government through its agencies can raise all the money that we project in the Budget. Sometimes it becomes difficult to raise all the money.

Sir, coming to the question on the work plan, the ministry has been given a work plan for three years up to 2009 and we want to concentrate on the roads that we have put in the Budget. If the Government, through the agencies such as ZRA raised enough and the Minister of Finance and National Planning releases that money, those are the roads that are going to be done in three years. After the last work plan which is in 2009, in 2010 and 2011, since we shall still be in Government, we are going to put another estimate.

Interruptions

Mr Tetamashimba: Therefore, we are going to be working according to the work plan that we are putting in place. We can assure the hon. Member of Parliament that although we shall live as MMD beyond 2011, the programme is going to come in either in 2010 or 2011.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Muntanga (Kalomo): Mr Speaker, only yesterday, the Acting Leader of Government Business was answering a similar question of upgrading the Nsumbu Habour.  He was clarifying whether there are serious discussions with the Ministry of Works and Supply on upgrading which will lead to Nsumbu Habour and whether the Government has had serious discussions with private investors. May I know whether this year there are serious discussions with the ministry who have had no plan to upgrade the same road?

Mr Tetamashimba: Mr Speaker, although normally I would have said it is a new question, I will attempt to answer it. What we have done as Ministry of Works and Supply is put all the roads in the work plan for 2007, 2008 and 2009. The hon. Members of Parliament had an opportunity to have access to the documents in which we have planned which roads are going to be done in three years. Now, if it happens that there is a donor willing to help to construct a certain road which they would want to do as a preference by that donor, then that money, if released, will be used on that road. Our intentions we are to proceed on the annual work plans so that we can distribute roads to all the constituencies in all the parts of the country.

Mr Speaker, I thank you.

Dr Kalumba (Chienge): Mr Speaker, from the response by hon. Minister of Works and Supply, can he just help us understand…

Dr Scott: On a point of order, Mr Speaker!

Mr Speaker: A point of order is raised.

Dr Scott: Mr Speaker, I am sorry to raise a point of order while the previous hon. Minister of Finance (Dr Kalumba) was talking. I wish to raise this one on the current hon. Minister of Finance and National Planning.  I was shocked this morning to find that the lead stories on all three newspapers concerned the theft by public servants of K3 trillion. I could not believe if at all the three stories seemed to be consistent.

Mr Speaker, K3 trillion, just as a guide, it increases on the sum of the annual value of HIPC, Budget support, Budget for the Ministry of Health and part of Budget for the Ministry of Education. In other words, is it half of the money that the hon. Minister of Energy and Water Development needed for his end of year Development Plan in the energy sector. I wonder if the hon. Minister of Finance and National Planning could be in order to be operating the ministry with such a loose financial control and would say that this astronomical sum of money can possibly go missing and further more be apparently unreported by the Auditor-General. Is he in order not to inform us about this national disaster?

Interruptions

Dr Scott: Mr Speaker, I will quote the head line in the Times of Zambia of Thursday, 8th February, 2007 and I quote:

“K3 Trillion stolen from State, ‘Levy reveals Public Service workers’ major failings...”

The rest is in the story and I will lay the paper on the Table.

Mr Scott laid the paper on the Table.

Hon. Opposition Members: Ba kawalala!

Mr Speaker: Order! The hon. Member for Lusaka Central has referred to the report about large amounts of money reportedly stolen. He wonders why the hon. Minister of Finance and National Planning has kept quiet about the matter. My ruling is as follows:

It is a fact that those amounts, if accurate, were approved by this House as part of the Annual Budgets. Under normal circumstance, I was going to ask the hon. Minister of Finance and National Planning to come to the House tomorrow and make a ministerial statement. However, quiet obviously, that will not be possible tomorrow because he is performing an entirely different function which we are all invited to.

In other circumstances with and in view of the matter, I task the hon. Minister of Finance and National Planning to come to the House on Tuesday next week with a concise ministerial statement in which he will inform the House as to what has actually happened and how he intends to remedy the situation.

Hon. PF Members: Hear, hear!

Mr Speaker: The hon. Member for Chienge was in the process of raising a Supplementary Question.

Dr Kalumba (Chienge): Mr Speaker, given the commitment by the Government to ensure that the Northern Tourist Circuit - meaning that the promotion of tourism in North and Luapula Province must be a priority for Government, does the ministry intend to collaborate with the Ministry of Tourism and the Ministry of Finance and National Planning to at least re-allocate some money for the study to be under taken on this road so that the project remains within the Government’s?

The Minister of Works and Supply (Mr Simbao): Mr Speaker, I would like to thank you together with Hon. Dr Kalumba for his question so that I make a clarification.

Mr Speaker, it is true that this particular road is waiting for 2007. It is also true that there is nowhere at this time where we can find money. We are running the role of plan for three years in which case issues are re-looked at once again. Mostly what we are doing this year are roads that are on going from last year and some years back. As these roads come to an end, we will put on new roads. Therefore, definitely, there is an opportunity to look at this road in the 2008 Budget.

I thank you, Mr Speaker.

Mr Matongo (Pemba): Mr Speaker, with the new budget in process called Medium Term Expenditure Framework which covers a three-year period from the first year of the Fifth National Development Plan, could the hon. Minister of Works and Supply state that in fact, this particular road is not in the Fifth National Development Plan because if it is then it is a known event. Could he confirm that?

Mr Simbao: Mr Speaker, I thank you and I would also like to thank the hon. Member for Pemba.

Sir, the importance of the infrastructure cannot be over emphasised. We mentioned that this is the road that we planned for in 2006. We did not carry it on in 2007 because we did not start anything on it. What we carried were jobs that we were working on. Therefore, this is the road that is already in our plans and we shall have to do it at one time whether it is in the Fifth National Development Plan or not.

I thank you, Mr Speaker.

CONSTRUCTION OF HYDRO-POWER STATION IN NORTH WESTERN PROVINCE IN 2006 TO 2011

257. Mr Katuka (Mwinilunga East) asked the Minister of Energy and Water Development:

(a) how many hydro-power stations the Government had planned to construct in North-Western province from 2006 to 2011; and

(b) how many districts would be connected to the national grid in the period above.

The Deputy Minister of Energy and Water Development (Mr Sichilima): Mr Speaker, I would like to inform the House that several sites in North Western Province of about seven were studied by the year 2001. Two of these, Chikata Falls and West Lunga were recommended for development as soon as possible to meet short to medium term electricity requirements for the province and to replace the costly diesel generation. However, the ministry decided to include Kabompo Gorge to the list of projects. These have now been advertised in the press for developers to express their interest which projects they would like to be considered for. Bids are expected in early February, 2007. It is the ministry’s intention that all the three projects be developed or be in the process of being developed by 2011.

Mr Speaker, the ministry will have clearer perspective on the electrification requirements for each province once the Rural Electrification Master Plan is completed in December, 2007. The planning period for the Master Plan will be from 2007 up to 2030. Therefore we intend to make it as comprehensive as possible.

In the meantime, hon. Members may be aware of the ongoing works by ZESCO regarding the connection of Lumwana to the national grid through a 330kV power line. Once this line is commissioned, it will open opportunities for connecting the other districts to the grid. Therefore, we must develop a programme for systematic expansion of the network and this is what the Rural Electrification Master Plan will help us achieve.

I thank you, Mr Speaker.

Mr Katuka: Mr Speaker, from the hon. Minister’s response, it clearly shows that between now and 2011, there will be no works in Mwinilunga District concerning the generating of electricity other than the thermal generators that are in existence. A study according to the hon. Minister was done in 2001, but up to now nothing has been done. Could he assure us that they will do something before 2011?

Mr Sichilima: Mr Speaker, in case the hon. Member was not attentive, I have answered that.

As soon as the Lumwana line is open, the 330kV might open to these other districts. Like my hon. Minister said in his statement, it is about it being economical. On the other side, the Government has advertised to private investors of which if they declare interest, they maybe allowed. Therefore, it is not right to say that nothing will be done.

I thank you, Mr Speaker.

RISK ALLOWANCE AND ACCOMMODATION FOR POLICE OFFICERS

258. Mr Ntundu (Gwembe) Asked the Minister of Home Affairs:

(a) whether there were any plans to review upwards the current risk allowance paid to officers in the Zambian Police Force; and

(b) when the Government would build adequate residential accommodation for officers in the Zambian Police Force in all the nine provinces of Zambia.

The Deputy Minister of Home Affairs (Mr Musosha): Mr Speaker, the question from Hon. Ntundu who want to know whether there are any plans from the Ministry of Home Affairs to review upwards the current risk allowance paid to officers in the Zambia Police Service and when the Government will build adequate residential accommodation for officers in the Zambia Police Service….

Mr Speaker: Order! Order! Zambia Police Force.

Mr Musosha: Mr Speaker, I thank you. Zambia Police Force.

Mr Speaker, the risk allowance which was paid to officers in the Zambia Police Force was abolished through the Public Service Management Division Circular No. B1 of 2004 and introduced the exposure allowance instead.

Mr Speaker, the House may wish to know that the risk allowance was K2,000 per month while exposure allowance is K50,000 per month.

Hon. PF Members: Aah!

Mr Musosha: The building of adequate residential accommodation for officers in the Zambia Police Force in all the nine provinces of Zambia has been included in the Fifth National Development Plan 2006 and 2010 under the Public Safety and Order Sector - Infrastructure Development.

Mr Speaker, with all things being equal, by 2010 there should be a considerable improvement in the residential accommodation for officers in the Zambia Police Force.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Mtonga (Kanyama): Mr Speaker, is there political will on the part of Government to give the police an appropriate allowance by cutting the huge allowances that ministers get for cell phones which amounts to more than K120 billion per month.

Mr Sichilima: On a point of order.

Mr Speaker: A point of order is raised.

Mr Sichilima: Mr Speaker, I rise on a very serious point of order. Is the hon. Member of Parliament for Kanyama (Mr Mtonga) in order to bring issues that we have been warned before by the Chair not to debate ourselves. In this case, he is referring to the Front Bench’s allowances. I need your serious ruling.

Hon. Government Members: Hear, hear!

Mr Speaker: The Hon. Deputy Minister of Energy and Water Development has raised a point of order referring to the tradition of the House that we do not debate matters relating to their emoluments in general. That being the case, may the hon. Member for Kanyama rephrase his supplementary question?

Hon. Government Members: Hear, hear!

Mr Mtonga: Mr Speaker, I am grateful for that wise guidance and I would like to rephrase the question. Is there political will from your Government Hon. Minister, to give police officers an appropriate allowance which can be drawn from some other surplus allowances like that of cell phones being given to some government leaders?

Hon. PF Members: Hear, hear!

Laughter

Mr Speaker: It seems the hon. Member for Kanyama had problems in rephrasing his question …

Laughter

Mr Speaker: … however, the Hon. Minister of Home Affairs may answer.

Lieutenant-General Shikapwasha: Mr Speaker, first and foremost, I wish to thank the hon. Member for Kanyama for that question. As a caring Government, we are very concerned on the conditions of service for all our uniform personnel police men and women included. And therefore, we continuously try to improve the conditions of service. This particular allowance that is now called exposure allowance used to be K2,000 only. With time, when this Government came into power, we immediately improved it. Sir, I want to assure the House and the nation at large that we will continue to improve on the exposure allowance.

I thank you, Sir.

Mr Ntundu: Mr Speaker, is the Hon. Minister aware that the reason why there is corruption in the police force is because Government is not giving police officers incentives? If he is aware, I wonder how Government will achieve the fight against corruption if police officers are not motivated.

Lieutenant-General Shikapwasha: Mr Speaker, the Government is aware of the many challenges that our police officers are exposed to. I cannot confirm on what the hon. Member of Parliament has said that there is corruption in the police force. I am yet to see a study or survey brought to my table that there is corruption in the police. I, therefore, wish to say that my Government is continuously improving the accommodation, allowances, pay structure, new uniforms and good working conditions.

I thank you, Sir.

Ms Mumbi (Munali): Mr Speaker, following the recent shooting which was in Chazanga, and the Hon. Minister here has told us that the police get K2,000 to K50,000 exposure allowances pertaining to them being shot. I would like to get an assurance from the Minister of Home Affairs, because on today’s news we heard that this police officer is at high risk by these robbers who want to kill him. After this officer is discharged and what assurance is Government going to give this House that this police officer will be protected and if he lives in Kalingalinga or Chazanga, is there possibility that this police officer will be taken to a police camp for security?

Hon. Opposition Members: Hear, hear!

Mr Speaker: That question seems to be outside the question under consideration however, due to its urgency can the Hon. Minister give assurance to that supplementary question.

Lieutenant-General Shikapwasha: Mr Speaker, first and foremost, I want through you to inform the House that, this young sub-inspector risked his life to save the lives of Zambians. And therefore, my Government considers him as a hero.

Hon. Members: Hear, hear!

Lieutenant-General Shikapwasha: That being the case, I cannot reveal to the House and to the nation what we are going to do in order to protect him because the same criminals will know about it.

I thank you, Sir.

Mr Sikota (Livingstone): Mr Speaker, I thank the Hon. Minister for his quick intervention in the case of Sub-Inspector Thoka who he has upgraded to full inspector. I take it that this promotion he got is by way of compensation. And I take it that the risk allowance which is now the exposure allowance has an element in it of compensation for officers who get shot like Sub-Inspector Thoka. Therefore, I would like to find out whether there are any plans to make the compensation that these officers get when they get shot like Sub-Inspector Thoka to be raised to a reasonable level because at the moment they are terribly inadequate.

Lieutenant-General Shikapwasha: Mr Speaker, I would like to assure the hon. Member of Parliament for Livingstone (Mr Sikota) that this Government is considering raising the allowances and compensations that are in place currently.

I thank you, Sir.{mospagebreak}

MONEY RELEASED FOR FEEDER ROADS IN SOUTHERN PROVINCE FROM 2003 TO 2006

259. Mr Ntundu asked the Minister of Local Government and Housing:

(a) how much money was released for feeder roads in Southern Province from 2003 to 2006; and

(b) which feeder roads were worked on district by district.

The Deputy Minister of Local Government and Housing (Mr Kazonga): Mr Speaker, in terms of part (a) of the question, the Government through the emergency drought recovery programme under the office of the Vice President released K7.6 billion for feeder roads in Southern Province between 2003 and 2006.

Mr Speaker, for part (b) of the question, the roads which were worked on are listed and I will lay on the Table the document which has all the details in conformity with the second part of the question.

Mr Kazonga laid the paper on the Table.

Mr Ntundu: Mr Speaker, the reason the Minister has decided not to reveal the work that has been done with the money that was released is because he is aware that there are no feeder roads that were done in the Southern Province. So, Sir, as hon. Member for Gweembe …

Mr Speaker: Order! The hon. Member for Gweembe is raising an argumentative issue without ensuring that the roads that he is interested in may have been worked on. I shall, under the circumstances, do something that has not been done before. I shall refer this document immediately to the hon. Member for Gweembe (Mr Ntundu), but he must return it to the Table of the House afterwards.

A House Messenger handed the document to Mr Ntundu

Mr Speaker: While the hon. Member is studying that document, is there any supplementary question?

Mr Mwansa: Mr Speaker, I would like to find out from the hon. Minister what measures are put in place when these amounts of money are released to ensure that the roads for which the money is intended have been worked adequately.

The Minister of Local Government and Housing (Mrs Masebo): Mr Speaker, the Government issued guidelines on how resources that are being released from sector ministries are supposed to be disbursed in terms of the contracts that are issued and in this case, these resources were released to the districts and the districts did follow the guidelines in disbursing public resources.

I thank you.

Mr Ntundu: Mr Speaker, having looked at the answer that has been provided by the hon. Minister, there is a serious omission because Gweembe is not appearing. I would like to find out why the Minister did not release funds to Gweembe. Why?

Laughter

Mrs Masebo: Mr Speaker, that is a fair question because I note that under Choma, there are eight roads and in fact, all the districts are listed here except for Gweembe. Mr Speaker, one of the reasons could be that Gweembe has had a different allocation because of the Gweembe Fund, which resources were being used for projects such as electrification, road works and so on. So, Sir, it could be based on that reason and that is why Gweembe was omitted from these resources.

I thank you.

Mr Speaker: Order! Can the hon. Member for Gweembe return the answer to the Clerk of the National Assembly?

Mr Ntundu returned the answer to the Clerk of the National Assembly.

Mr Matongo: Mr Speaker, I would like the hon. Minister to answer a question I have been raising for a long time in this House and that is on the classification of roads. Sir, Gweembe being rural, except for Chisekese/Munyumbwe, could have roads which are agricultural and, therefore, they do not fall under her ministry.

Secondly I would like to find out from the Minister to what extension under the new budgeting system because it is rolling over from one year to three years under the five years development plan. She must have the answer, I hope. How much extension of the road network in Choma District would have been increased from 991 kilometers to something else? Could the hon. Minister advise us on that?

Mrs Masebo: Mr Speaker, the question is new, but I will try to meet the expectations. Firstly, the issue of the road network within districts is determined by the districts themselves in accordance with the plans that they have come up with. For example, if they are opening a new settlement, the district will determine what sort of roads will be built within that settlement and they will also name the roads and have them gazetted. Sir, I do not have that information out rightly.

Secondly, it is the question of the categorisation of roads. He is right that we have agricultural roads, urban roads and feeder roads in the rural areas and we do have the main roads. In the past agricultural roads were under the Ministry of Agriculture and Cooperatives and the urban roads which include feeder roads. Township roads were under the Ministry of Local Government and Housing. Main roads were under the Ministry of Works and Supply and in 2002, arising from the new transport policy a new legislation was enacted placing all the roads in the country under the Road Development Agency which is under the Ministry of Works and Supply. This Road Development Agency also saw the establishment of the Road Fund and other road safety under the Ministry of Transport and Communications but the three are reporting to five Ministries which includes Ministry of Local Government and Housing; Ministry of Finance and National Planning; and the Ministry of Works and Supply and the Chairman is the Minister of Transport and Communications (Mr Daka).

Mr Speaker, from that, we have rationalised the institutional framework of road management in the country, but the Minister of Works and Supply shall appoint local authorities as road authorities, so in effect it means that the local authorities countrywide 
are still the managers of the roads within their boundaries, okay.

I thank you, Sir.

DEVELOPMENT OF THE SOURCE OF THE ZAMBEZI RIVER INTO A TOURIST ATTRACTION

260. Mr Katuka asked the Minister of Tourism, Environment and natural Resources what measures the ministry has taken to develop the source of the Zambezi River into a major tourist attraction.

The Deputy Minister of Tourism, Environment and Natural Resources (Mr Kaingu): Mr Speaker, the ministry has been implementing a programme to develop the source of the Zambezi River into a major tourist attraction within the context of an approved management plan.

Mr Speaker, as a result of this programme, which is being implemented through the National Heritage Conservation Commission, the ministry has constructed walk boards along 75 per cent of the viewing areas; an information centre; a boom gate; car park; a three bedroomed house for the conservation assistant, which is roofed and only remaining with fittings, a camp site, and the erection of a water tank.

The remaining activities through this programme include finalising the construction of the remaining part of the walk boards. Further works will involve exploration for water in order to sink a borehole. In addition, a house for the site manager will be constructed. Energy for the area will be provided through a generator and solar power. A vehicle will be procured for use by the project.

Mr Speaker, I wish to confirm that funds are available to do these remaining works with the completion of the above works this year. The source of the Zambezi will have been developed to international standards.

I thank you, Sir.

Mr Sikota: Mr Speaker, arising from the answer given by the hon. Minister, and in view of the fact that we are talking about the source of Zambia’s foremost river, I would like to find out whether all the environment concerns will be taken into account in view of the sensitivity of this particular area that we are talking about and whether all these various developments that are being talked about have taken that into consideration.

Mr Kaingu: Mr Speaker, I confirm that we have taken care of that.

Hon. Government Members: Hear, hear!

Dr Kalumba: Mr Speaker, can the hon. Minister confirm that some things are better left untouched. Is it necessary to put up all these structures at the source of the Zambezi?

Mr Kaingu: Mr Speaker, yes, it is very important for us to do so to attract outside visitors to see where this mighty Zambezi starts.

Dr Scott: Mr Speaker, the question referred to a major tourist attraction. I wonder whether the hon. Minister believes that many people will fly half way across the world to observe some water seeping out of the ground in mushitu.

Laughter

Dr Scott: To be specific, how many tourists annually does he expect to be attracted to the source of the Zambezi?

Mr Kaingu: Mr Speaker, although, we are actually developing that area it will still be a very restricted area.

I thank you, Sir.

Mr Muntanga: Mr Speaker, we understand the hon. Minster of Tourism, Environment and Natural Resources hasput the source of the river to international standards as a major tourist attraction and he also wants me to be a restricted area.

Laughter

Mr Muntanga: Mr Speaker, could this Government tell us exactly what they want to do? We have a disaster over the springs on the Great East Road where the Chinese tried to put some pipes and failed. They nearly disturbed the springs in Chinyunyu. Have we taken this into consideration before they dry up the Zambezi River? Mr Speaker, I want a proper explanation from this Government.

Mr Kaingu: Mr Speaker, yes, we are going to develop the area, but the entrance to the source was restricted. It is not that everybody will walk there like the way it is at the Victoria Falls.

Laughter

Mr Kaingu: There will be restrictions and we will be allowing people to go there, but really it will not be an open area.

Hon. Government Members: Hammer!

GRADUANTS FROM THE FERTILISER SUPPPORT PROGRAMME FOR DECEMBER, 2006

261. Mr Katuka asked the Minister of Agriculture and Cooperatives:

(a) how many people graduated from the fertiliser Support Programme as of December, 2006; and

(b) how many of those at (a) above were capable of sustaining themselves financially.

The Deputy Minister of Agriculture and Cooperatives (Mr Kalenga): Mr Speaker, no farmers have graduated from Fertilizer Support Programme. This is due to adverse weather conditions experienced in some areas and poor husbandry practised by small scale farmers, which has resulted in them not making adequate profit from maize production.

Due to the slow pace of rebuilding the resource base of small-scale farmers, a lot of them are still not able to effectively sustain themselves.

I thank you, Sir.

Mr Katuka: Mr Speaker, this programme started in 2002 and it has been on going. If no one has graduated since then, is the programme viable?

Mr Kalenga: Mr Speaker, the programme is viable. We are a listening and caring Government, so we want to look after our farmers and we will continue drilling our farmers to look after themselves.

Mr Nkombo: Mr Speaker, the hon. Minister of Agriculture and Cooperatives Hon. Kapita admitted in this House that on the Fertilizer Support Programme, there have been a few malpractices in form of theft. I would like to find out whether they have made any arrests and if they have, how many dockets have been opened and how many convictions they have secured.

Mr Speaker: The hon. Minister of Agriculture and Cooperatives may answer, but the House recalls that there was an elaborate reply on this matter last week or a week and half ago. Can the hon. Minister give an answer if necessary?

Mr Kalenga: Mr Speaker, I agree the hon. Minister gave an elaborate statement in this House, and I do not know whether the hon. Member was not listening.

Laughter

Mr Kalenga: Mr Speaker, some of those who mismanaged are on suspension and others reported to the police.

Those who want to know how many have been prosecuted, they are free to come to our officers and we can give them that information.

Mrs Musokotwane (Katombola): Mr Speaker, the hon. Minister said that one of the reasons the project has not succeeded is the weather. We know very well that the only province that has problems with the weather is Southern Province. Most of the provinces in this country have very good rains. Why have farmers not graduated in those provinces where weather is not a problem?

Mr Kalenga: Mr Speaker, weather is a natural thing. I do not know whether the hon. Member for Katombola is following us. Just yesterday, the President came back from North Western Province where there are floods and the area was declared a disaster area. So, bad weather is all over the country.

I thank you, Sir.

Laughter

Mr L J Mulenga: Mr Speaker, my question regards the fertiliser support services. What is given translates to one hectare. Can one hectare translate into viability? Can you be honest and answer that question?

Laughter

Mr Speaker: Order! The question is irrelevant.

Laughter{mospagebreak}

PROVISION AND SINKING OF BOREHOLES IN KASIYA WARD IN LIVINGSTONE TO ATTAIN THE MILLENNIUM DEVELOPMENT GOALS

262. Mr Sikota asked the Minster of Local Government and Housing:

(a) whether the Government had any plans to provide and sink boreholes for the people of Kasiya Ward in Livingstone; and

(b) how far the Government had gone in ensuring that Kasiya Ward made progress towards attaining the Millennium Development Goals relating to access and provision of water.

Mr Kazonga: Mr Speaker, under the National Rural Water Supply and Sanitation Programme, my ministry has developed a plan to provide water facilities such as boreholes in the rural areas.

Sir, all councils have been advised to prepare District Water Supply and Sanitation Plans indicating what type of water facilities, costs and areas where these facilities can be provided.

Kasiya Ward, being a rural ward, will benefit from boreholes as long as Livingstone City Council includes the project in the District Water Supply and Sanitation Plan.

Mr Speaker, the Government has already drawn a programme as indicated in the first part of the response, relating to access to water and provision of water in Kasiya Ward. However, attainment of the Millennium Development Goals should not be left to the Government alone. All citizens, including hon. Members of Parliament can contribute effectively towards the attainment of the goals relating to access to and provision of water by attending council meetings and providing viable contributions that can bring about development to the councils.

I thank you, Sir.

Mr Sikota: Mr Speaker, seeing that Livingstone Council has made the provision of water to Kasiya Ward a priority and that it is part of their District Water and Sanitation Plan, can the hon. Minister give assurances that this will be attended to and when it will be done.

Mrs Masebo: Mr Speaker, if a district plans and prioritises water supply and sanitation in their district plans, the council should also budget, firstly, within their meager resources and then the Government will also mobilise resources from the National Treasury and our cooperating partners. I can confirm that in this year’s budget plan by the ministry, we have prioritised water supply and sanitation.

However, as to whether there are a number of boreholes that have been prioritised in Livingstone, it might not be possible for that to be achieved in one budget year. However, I hope that this year, 2007, Livingstone Council will ensure that Kasiya becomes one of the first wards to be given water.

I thank you, Sir.

Mr Mukanga (Kantanshi): Mr Speaker, I would like to find out what percentage of the Millennium Development Goals has been completed. When we talk about completion, I think we should be monitoring these Millennium Development Goals.

Mrs Masebo: Mr Speaker, in our daily efforts in terms of evaluating and monitoring, I am aware that the various districts are taking note of these matters. This is why from time to time we have made statements to the effect that Zambia has to invest more in the sub-sector of water supply and sanitation if we are to achieve the Millennium Development Goals on time. We are a few years from 2015 and all I can say is that we are making steady progress.

I thank you, Sir.

COXSWAINS

263. Mr Sikazwe (Chimbamilonga) asked the Minister of Communications and Transport why the Government stopped training outboard motor drivers known as coxswains.

The Minister Communications and Transport (Mr Mubika): Mr Speaker, the Government has not stopped training outboard motor drivers known as coxswain. In so far as the ministry is concerned, I have no information to the effect that Government stopped training coxswains. My ministry still carries out training of coxswains through the Department of Maritine and Inland Waterways upon request. For instance, in the year 2004, the department upon request from Zambia Wild Life, trained twelve coxswains.

I thank you, Sir.

Dr Kalumba: Mr Speaker, could the hon. Minister confirm why the training of drivers is a private enterprise activity. Why should the training of coxswain be the responsibility of the Government?

The Minister of Science, Technology and Vocational Training (Dr Chituwo): Mr Speaker, that is a very good observation, but in terms of skills training, there is the issue of partnerships. It is not long ago when the Ministry of Transport and Communication had ITC. As a ministry responsible for skills training, this is where we partner with the private sector.

Secondly, we are focusing, as a Government on five key areas, i.e. agriculture, tourism, mining and manufacturing. In tourism one of the attractions is that of the waterways. So, we have interest in seeing that there are skilled personnel in this area.

I thank you, Sir.

Mr Sinyinda: Mr Speaker, I would like to know whether there are any people monitoring the competence coxswains considering the fact that so many people drown every year.

Dr. Chituwo: Mr Speaker, yes we have the Director of Maritime. We do have a department under the inspectorate wing and the only constraint is the ability to cover all our water masses, but that provision is available.

Thank you, Sir.

WITHDRAWAL OF FADED POLYMER KWACHA NOTES AND THE INTRODUCTION OF K100, 000 BANK NOTES

264. Mr Ntundu (Gwembe) asked the Minister of Finance and National Planning:

(a) when the faded polymer kwacha notes would be withdrawn from circulation;

(b) what action the Government was taking against people who refused to transact in faded polymer kwacha notes; and

(c) whether there were any plans to introduce one hundred thousand kwacha bank notes.

Mr Shakafuswa: Mr Speaker, I would like to inform the House that the Bank of Zambia has been withdrawing faded polymer notes particularly the 2003 series which had an ink problem through the formal banking system and has been replacing them with the upgraded 2004, 2005 and 2006 series polymer bank notes. The 2004, 2005 and 2006 series bank notes have performed better than the earlier 2003 series polymer notes which were found to be of poor quality. The bank has withdrawn almost the entire 44 million pieces of 2003 series of the polymer notes. As at 31st December, 2006, the bank removed from circulation accumulating total of 51.6 million pieces of polymer bank notes with a face value of K37.5 billion and most of which were from the 2003 series. The bank has also continued to withdraw the subsequent 2004 and 2005 series when they become unfit for circulation. The Bank of Zambia has observed that the post 2003 series polymer bank notes last much longer than the paper bank notes and about 15 months or five times longer. All commercial banks have been advised not to reissue any faded polymer notes or any unfit bank notes for that matter, but they have to deposit with the Central Bank. The bank will continue with its sensitisation campaigns and encouraging the public to deposit faded polymer bank notes with the commercial banks.

As regards (b), bank notes issued by the Bank of Zambia remain legal tender until demonetized. Legally, this means that no one should refuse to accept a bank note in spite of their condition. It is, therefore, the civic duty of all stakeholders particularly business houses and traders to accept all bank notes and deposit worn out bank notes with their respective banks who would in turn forward them to the Bank of Zambia for replacements.

With regard to (c), generally central banks worldwide tend to restructure or redesign bank notes after every 5 years or when the value of the highest denomination reaches a threshold of 60 per cent of the total currency in circulation. As at 31st December, 2006, the concentration of the K50,000 denomination in circulation was 48.2 per cent and, therefore, below 60 per cent threshold. The Bank of Zambia will, therefore, continue to monitor the demand for higher denomination…

Mr Speaker: Order!

Business was suspended from 1615 hours until 1630 hours.

Mr Shakafuswa: Mr Speaker, when business was suspended, I had just started answering part (c) of Question No. 264.

Mr Speaker, generally, central banks worldwide tend to restructure or redesign bank notes after every 5 years or when the value of the highest denomination reaches a threshold of 60 per cent of the total currency in circulation. As at 31st December, 2006, the concentration of the K50,000 denomination in circulation was 48.2 per cent and, therefore, below the 60 per cent threshold. The Bank of Zambia will, therefore, continue to monitor the demand for high value bank notes with a view to introducing a new structure if need arises.

I thank you, Sir.

Mr Ntundu: Mr Speaker, the answer that has been given by the hon. Deputy Minister of Finance and National Planning is not correct. Looking at the amount of faded polymer notes that are still in circulation and the answer that the hon. Deputy Minister has given, there is so much variance. I would like to find out why this Government is letting the Bank of Zambia get away with such a serious anomaly?

Mr Shakafuswa: Mr Speaker, the hon. Member is actually free to check the statistics. I do not know how he will check his statistics with the polymer notes in circulation and come to the conclusion that we have given a false answer. We have given you the correct answer. The Bank of Zambia is not getting away with anything. All the notes which are withdrawn through commercial banks go to Bank of Zambia and they are not reintroduced into circulation. You are free to go to Bank of Zambia and check those records.

I thank you, Sir.

Dr. Machungwa (Luapula): Mr Speaker, in answer to part (c) of the question, the hon. Deputy Minister has indicated that the K50,000 will only reach a threshold of 48 per cent. At that rate, very shortly, chances are that it will reach a threshold of 60 per cent and be forced to introduce a hundred thousand Kwacha note or something higher. We also know that if we introduce these higher denomination notes, they tend to fuel inflation because people stop dealing in lower denomination notes. This is empirical and has been happening. Is it not desirable that the ministry should resist issuing higher denomination notes in the future to try and preserve the value of our currency?

Mr Shakafuswa: Mr Speaker, I think, my learned friend has got a problem in understanding inflation. The higher denomination of the currency will not fuel inflation at all. It is the management of the total fiscal policy that can determine whether there is inflation or not as being witnessed with the good work that the New Deal Government has done so far.

However, I can assure you that the proper solution will be done at an appropriate time depending on the movement of currency on the market.

I thank you, Sir.

Mr Ngoma (Sinda): Mr Speaker, following the response from the Ministry of Finance and National Planning about the Bank of Zambia getting away with it, he said that whichever notes that are being brought to the Bank of Zambia are being re-printed. What disciplinary measures have been taken against people that led the country to engage itself in the printing of these notes that faded away?

The Minister of Finance and National Planning (Mr Magande): Mr Speaker, fading of notes or any currency is not a question of negligence. Other denominations are also fading. On a daily basis, the Bank of Zambia is withdrawing soiled, oiled and faded notes. It is not just polymer notes.

Mr Speaker, there has been no disciplinary action taken against those people who led the country engage into printing of these polymer notes because we felt that the mistake was not with the Bank of Zambia, but with the printing company that offered to replace the notes that were wrongly put with the wrong ink. We now have proper notes in circulation and are doing very well.

I thank you, Sir.

Mr Muntanga: Mr Speaker, you will recall that a motion was moved in this House over the faded notes. At that time, the then Magoye Member of Parliament, Hon. Haakaloba moved a motion and brought in a faded note in this House. The hon. Minister’s answer then, was a promise that the company responsible was going to replace the fading notes and that, by the end of that year, everything would be normalised. May I know why this has taken long, and that up now, their answer says: ‘We have directed that they withdraw it’. Why was it not done, even after they resolved in this House that these polymer notes that are fading should be removed?

Mr Magande: Mr Speaker, Hon. Muntanga has a very good memory. We did issue a ministerial statement in this House that we have ordered an equivalent, for example, of K40 billion of these polymer notes. When we discovered that this order worth K40 billion notes was wrong and would fade in the market, we decided to request for a replacement of K40 billion of new notes with proper markings and the lead marks on them.

However, when the new notes come, we state that we can only introduce the new notes on the markets as we withdraw the old K40 billion notes that are susceptible to setting. We have got new notes from the printers that have better characteristics and are the ones that we are re-introducing on the market as we withdraw the notes that are susceptible to setting.

I thank you, Sir.

Mr Kasongo (Bangweulu): Mr Speaker, the question still remains unanswered. The Ministry of Finance and National Planning made a commitment on the Floor of this House in reaction to the same motion that was moved by the former Member of Parliament for Magoye (Mr Haakaloba) who even laid the same note on the Table. Why is it taking so long a time for the ministry to honour that commitment?

Mr Magande: Mr Speaker, companies that printed the notes that were susceptible to setting have replaced them by giving us new notes without payment and are much stronger. The one that Hon. Haakaloba laid on the Table, if it is in Mr Haakaloba’s pocket who is not in this House, until it comes back, we will not replace it with a better note which is waiting at the Bank of Zambia. Therefore, until the money out there in the economy comes back, we will not release all the replacement money because it is meant for replacement.

Mr Nkombo Mr Speaker, after realising that the Canadian Bank Note Company had defaulted on the quality of the polymer note that they sold to this country, why did this Government not find it necessary to go back to Thomas de Larue to order proper bank notes?

I would also like to find out what the Ministry of Finance and National Planning, and indeed, the Bank of Zambia are doing about the description of this same polymer note because children that are born today do not know it as kwacha any more. They know it as one pin. Is there anything that the Government is doing to introduce the correct nomenclature of our currency?

Mr Magande: Mr Speaker, when the polymer notes that we had introduced in the economy started showing weaknesses, we went back to the company that had printed them to complain about the quality of those polymer notes. The company agreed to replace the notes with better characteristics. At that point, there was no need to engage in a new tender process where another company that had not printed the notes was going to bid and print the notes.

The company that Hon. Nkombo mentions might not have the competence of printing polymer notes. We have used them for a long time in printing the ordinary copper notes, but not polymer notes. Therefore, they might not be the experts for printing polymer notes.

I thank you, Sir.

DEGAZETTING RURAL URBAN MIGRATION IN ZAMBIA

265. Mr Ntundu asked the Minister of Tourism, Environment and Natural Resources when the Government would degazette the Musisa and Makuyu Forest Reserve.

The Deputy Minister of Tourism, Environment and Natural Resources (Ms Tembo): Mr Speaker, the Government has started the process of degazetting the Musisa Forest Reserve. Once this process is completed, the said forest reserve will be degazetted.

As for the so-called ‘Mukuyu’ Forest Reserve, I wish to inform this House that there is no forest reserve called by that name.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Speaker: Hon. Member for Mapatizya. Sorry the hon. Member for Moomba by prior arrangement will ask his question.

Mr Ntundu stood up.

Mr Speaker: Order! I look and if you do not react quickly, I move on. So, next question!

CAUSES FOR RURAL URBAN MIGRATION IN ZAMBIA

266. Mr Mooya (Moomba) ( On behalf of Mr Sejani (Mapatizya) asked the Minister of Finance and National Planning:

(a) what the causes of rural-urban migration in Zambia were; and

(b) what programmes the Government had initiated in order to develop rural areas in Zambia.

Mr Shakafuswa: Mr Speaker, let me begin by stating that Zambia has never undertaken any comprehensive study or survey to find out why people move from one place to another. The Government, in future, will ensure that such a study is undertaken.

Generally, rural urban migration in our nation has been, mostly, in response to perceived and actual employment opportunities in our urban centres. It is a well known fact that previously, there was little development taking place in rural areas while our cities and urban areas have better developed social facilities and services. These better social facilities and services also act as pull factor for rural people to migrate to urban areas.

Mr Speaker, let me point out that poverty levels in terms of levels of income, education and health are higher in rural than urban areas. Rural areas have limited formal employment opportunities and less pay. This situation has forced people to migrate to urban areas to look for the jobs which may not be there.

Lastly, but not the least, population increases in some rural areas has made peoples move to towns. For example, when people increase in numbers in rural areas, there may arise some problems over land. This may lead to migration to other rural area or to urban areas.

Mr Speaker, with regard to the question about what programmes the Government had initiated in order to develop rural areas in Zambia, it is vital to let this august House know that the New Government has put a number of programmes in place in order to uplift the standard of living for our rural people and in turn stabilise the rural population.

The cornerstone of these programmes is the organisation policy which includes fiscal decentralisation which involves allocation of funds to the lowest administrative organ of the Government, namely, the constituencies. This provides the rural people with the ability to plan and develop facilities such as schools and clinics which they desire for their continued stay in a particular locality.

Mr Speaker, other programmes to improve roads, water supply and sanitation, provide rural electrification, free basic education and free attendance of health facilities are meant to improve the standards of living of the rural people.

As lack of income is one of the aspects of poverty, the Government is implementing programmes that facilitate earning of income by the rural people. The labour-based method of road rehabilitation is a major effort that provides incomes to rural people. Lack of food is mitigated by food-for-work programmes under which the workers are given food after doing some productive work.

We all know that most of the rural population are engaged in agriculture and fishing. To encourage these people to continue with their vocation, the Government provides free advisory services to the farmers and fishermen so that they adopt better methods and produce surpluses for sale and earn incomes. To make agriculture profitable and encourage the rural people to remain in rural areas, the Government gives out free inputs to the viable, but vulnerable and subsidises the cost of inputs for viable small-scale farmers. The Government also transports the inputs to near the farmers and buys their produce at markets closer to their homes.

Mr Speaker, the Government plans to double its efforts to improve the economic and social conditions of both rural and urban areas in the next few years. The fiscal space has been created by good economic management and debt write-off. The effort will be anchored on the programmes of the Fifth National Development Plan and the Long-Term Vision 2030 recently launched by His Excellency, Mr Levy Patrick Mwanwasa, SC. However, there is no Government on earth which has managed to turn the whole country into an urban area. In fact, there are many people who will always feel proud to stay in rural areas for environmental reasons, such as good open spaces. Our development aim should, therefore, not be to create crowded urban communities.

I thank you, Sir.

Mr Muntanga: Mr Speaker, the hon. Minister has mentioned two important factors being the cause of the urban rural migration. The first being in search of employment and the second being shortage of land. He has not stated what the Government would specifically do to address these two important issues raised in his answer. May I know what is going to be done?

Mr Shakafuswa: Mr Speaker, if the hon. Member listened to my response, I said that the Government is encouraging those in rural areas who are productive to engage in farming as a form of employment. We are encouraging the farmers to farm on their land through provision of subsidies and free inputs for those who are vulnerable so that they can depend on their land for a livelihood. For those in fishing areas, we are teaching them good methods of fishing.

Mr Speaker, I think we have got a lot of land and it is just a matter of how we distribute our land. Basically, we have got a good land system which is based on our customs where our customary leaders look after everybody who wants to stay in their localities.

I thank you, Sir.

Mrs Musokotwane: Mr Speaker, the hon. Minister raised some issues about what the Government is doing to stop people coming to rural areas. Could the hon. Minister inform this House if those activities have been implemented in the rural areas and have arrested the situation?

Mr Shakafuswa: Mr Speaker, as I said, we are in the process of doing a study. I know because of poverty levels in the urban areas, most of us are not encouraging our relatives to come and stay with us. As a result, most of our people are in rural areas where there is productivity.

Mr Speaker, through the Fifth National Development Plan we have embarked on a pro-poor spending budget, whereby most of the monies in the budget will go to the pro-poor activities. If you spend money on schools, we will be creating more work for more people to work on the sites.

So, with that in mind, we are trying to create wealth in rural areas and keep people there. For those who are not fairing well, it is more profitable for them to go back to rural areas. Some people make sure that while they are still working they use up all their money and save nothing such that at the time of retirement they are paupers.

Mr Sinyinda: Mr Speaker, arising from the answers given by the hon. Minister of Finance and National Planning, I would like to find out whether the Government has got a deliberate programme whereby people in rural areas can be talked to so that they know exactly what the Government would like them to do. For example, young people or communities would like to be talked to so that they know the disadvantages of being in urban areas. Is there any deliberate programme like we used to see in the past whereby Governors and Provincial Permanent Secretaries would go out to talk to people and tell them what they are supposed to do in their respective areas?

Mr Shakafuswa: Mr Speaker, that was a very good question and I am happy that the hon. Member raising this question is part of the Government. It is therefore, his duty to ensure that people in his constituency are adequately given that information. On top of that, I think through the decentralisation programme, a lot of people think it has not started. For example, the Government has already decentralised education. Education decisions are now done at district level. Health has also been decentralised. At the Ministry of Finance and National Planning, we are trying to decentralise although we are trying to ensure that there is fiscal capacity at district level to be able to handle matters of governance. With that, it will mean that Government will be at the footstep of the people. Since all hon. Members of Parliament are at district level, it will mean that we are going to run Government together with hon. Members of Parliament and ensure that we disseminate information at local level. That will enable people to get the information a.

I thank you, Sir.

Major Chizhyuka (Namwala): Mr Speaker, the general SADC guideline with regard to the contribution of agriculture to the GDP of the country is supposed to be 10 per cent. The Government has decided that it should give 5 per cent contribution. How do you expect to create employment in order to swat rural migration to the urban areas in the absence of sufficient capital injection to support agriculture? On top of that, how do you also create employment in the absence of banks like the Lima Bank and Cattle Banks to support agriculture and create employment as opposed to the labourer employment to Zimbabwean farmers. As a rider, the hon. Minister is aware that the very reason why the Tonga people of Southern Province have migrated and created chiefdoms all over including Kapiri Mposhi and other areas is because of the very fact that there is no land in Southern Province. How do you expect to create agriculture ventures in Southern Province where today, there is no land and even the land that used to be there has been taken over by Zimbabwean Farmers? How do you hope to retain the rural people to stay in the rural areas and create rural employment in the advent of the difficulties in the rural areas today?

Mr Magande: Mr Speaker, as the hon. Member of Parliament has said, because of the increase in population in Southern Province, it would seem there is not enough land for the people who are there. One of the permits of Zambian Democracy according to the constitution is that a Zambian is free to move and settle anywhere. This Government is going to make sure that anybody who wants to do that is protected under the constitution. That is why some of the people who felt they could not find enough land in Southern Province moved and created villages in other parts of the country. That is because we allow people to move and settle anywhere.

Sir, Southern Province is not the only rural area. There are other rural areas where there is still land. Those who want to be productive can still move and settle where there are still big pieces of land.

I thank you, Sir.

Mr L. J. Mulenga: Mr Speaker, arising from the answer given by the hon. Minister of Finance and National Planning that the people in the rural areas are given free fertiliser and are supported, I wonder whether the hon. Minister…

Mr Speaker: Order! This has been going on for far too long today and I will talk about it. If you have to ask a supplementary question, go right to the question.

Mr L. J. Mulenga: Mr Speaker, thank you for your guidance. I would like to find out from the hon. Minister if he has assured the rural people that he will support them.

Mr Magande: Mr Speaker, I appreciate the hon. Member of Parliament is from Kwacha Constituency which is in town and I am an hon. Member of Parliament for Chilanga Constituency which is in the rural area. Even to get to this House, I had to discuss with the electorates on their problems and we have identified that part of the support for agriculture is what they want. Yes, we have talked to the people and I am sure a lot of hon. Members of Parliament from rural constituencies have talked to their people.

I thank you, Sir.

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

FUNDING THE HYDROPWER PROJECT AT KALENE MISSION 
IN MWINILUNGA

267. Mr Katuka (Mwinilunga East) asked the Minister of Energy and Water Development whether the Government had plans to fund the hydro-power project being constructed by missionaries at Kalene Mission in order to reduce the high cost of running the thermal power station in Mwinilunga District.

Mr Sichilima: Mr Speaker, the Mini-Hydro Power Project being constructed by the missionaries at Kalene Mission is a private sector driven initiative that involves the setting up of a 0.7 Meager Watts power plant at a point of 50 kilometres down stream from the source of the Zambezi River. The Government is encouraged by the emergence of projects of this nature promoted by the private sector and fully supports this initiative.

In this particular case, the Government, through the Rural Electrification Authority has provided support by was of capital subsidy of K100 million out of the total project cost of K9.1 billion (US$2,276,365).

Mr Speaker, the K9.1 billion will be spent on the following main project components:

(i) Civil works of the canal waterway; power station house including tailless;

(ii) 700 mega watts generator and associated equipment (flywheel, transformer, switchgear and cables); and

(iii) a distribution line from the power station to various demand centres such as Kalene Hospital and two schools named Nyakaseya, Chiyazhi and Ikelene, Sakeji Basic Schools, two clinics, a commercial farm and approximately 350 residential houses.

The K100 million subsidy will finance part of the cost of the 33KV distribution line. The entire line alone is estimated to cost K1.6 billion (U S $400,000).

Mr Speaker, I must emphasise that the 1 per cent subsidy provided by the Government to this project should be seen more as a gesture of support and goodwill to encourage the private sector. Although the amount offered is not much compared to the total cost, it is the spirit in which this amount has been given, that is important.

I thank you, Mr Speaker.

Mr Katuka: Mr Speaker, I would like to find out from the hon. Minister if with that kind of support the district will be connected after commissioning of the plant.

Mr Sichilima: Mr Speaker, as this will be a private sector driven, it could be considered. If it is considered, they will connect the line to the district and if connected, the community will benefit.

ILLEGAL ALLOCATIONOF PLOTS IN THE COUNTRY

268. Mr Mooya (Moomba) (on behalf of Mr Sejani) (Mapatizya) asked the Minister of Lands what measures the Government had taken to address the problem of illegal allocation of plots in Lusaka and other major cities in the country.

The Deputy Minister of Lands (Mr Muteteka): Mr Speaker, I wish to inform this august House as well as the nation at large that through the Ministry of Lands, the Government has taken measures to address the problems of illegal allocation of plots in Lusaka and other major cities in the country. These are as follows:

(a) the Ministry of Lands has put in place a land advocacy campaign of disseminating procedures and guidelines on how to acquire land;

(b) the Ministry of lands has embarked on a transparent and accountable process of land allocation by advertising the plots to members of the public in the national press. At the same time, the Ministry of Lands has taken administrative measures of inviting officers from other wings of the Government to be on the interviewing panel when conducting interviews. This includes officers from the Anti-Corruption Commission, Drug Enforcement Commission, Lusaka City Council and Provincial Planning Authority;

(c) the Government has warned the public including political cadres from all political parties and chairmen not to engage in illegal land allocation as this is illegal under the Lands Act. Through the mandated arms of Government, the Government will arrest and prosecute all those found wanting;

(d) during the advocacy campaigns, the Ministry of Lands has revoked agency ship of some councils that have not followed laid down procedures in allocation of land; and

(e) the Ministry of Lands in liaison with the Ministry of Home Affairs and Ministry of Local Government and Housing will work hand in hand to demolish all illegal structures.

Mr Speaker, I thank you.

Mr Sichilima: Hear, hear!

Dr Scott: Mr Speaker, I was with the Town Clerk of Lusaka this morning checking up on this very issue. Currently, the problem appears to be that when illegal allocation is done, the police do not take action even though it is reported to them and things continue.  Is the hon. Minister aware of this and if he is what measures has he taken to coordinate with the correct arms of Government?

Mr Muteteka: Mr Speaker, the Government and my ministry are aware of the illegal allocation of land. I wish to inform this august House that those who have been found wanting have been brought to book. I also want to mention that at the moment, we have one Zambian national in prison because of the illegal allocation of land.

I thank you, Mr Speaker.

Mr Muntanga: Mr Speaker, the hon. Minister has tabulated the procedure of allocation of land which is legal. Legality means that most land in Zambia remains bare and not demarcated.  In the process, there is no value for land. If someone builds something …

Mr Speaker: Order! Ask your question.

Mr Muntanga: Mr Speaker, what will the Ministry of Lands do to the people who put up structures on land that has been given illegally to add value to it?

Mr Muteteka: Mr Speaker, the Ministry of Lands is administering land according to the law. There is a procedure on how to acquire land. Once you acquire land, you are given a Title and you enjoy the rights of the Title which includes developing that piece of land. If you do not develop that land, there is a law to re-enter and repossess that land from an individual who has failed to develop it.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Major Chizhyuka: Mr Speaker, I have taken trouble to look at the documents of some those Zambians whose properties were destroyed. The documents are legal and are signed by the legal officer of the council.

Mr Speaker, the question that I would like to ask the hon. Minister of Lands is that since when id it become prudent in Zambia to go and destroy somebody’s structure at 0100 hours when you as a Government have police and security agencies to assist perform that task in broad day light so that you do not inconvenience a Zambian who has taken time and spent money to acquire land and build a property to roof level and you come and destroy it oblvious of the problems of the Zambians. Since when did it become necessary for you to do that because we hold elections from 0600 hours to 1700 hours during the day? Why do you choose to go and destroy other people’s houses at 0100 hours? What are you afraid of when you have an entire Police Force and the entire army to protect you?

Hon. UPND Members: Hear, hear!

Mr Sichilima: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Sichilima: Mr Speaker, I rise on a very serious point of order. Is the hon. Member on the Floor in order to come to this House to say that he has taken trouble to check these documents and to him, the documents were legally obtained when the officers on the ground have said they are illegal. Is he in order? Mr Speaker, members of the public are listening as we are debating now. Is he in order to misleading the nation and yet the officers on the ground have said that those are illegal papers hence the demolition. I need your serious ruling, Sir.

Mr Speaker: The Hon. Deputy Minister in the Ministry of Energy and Water Development has raised a point of order on a question which is being asked by the hon. Member for Namwala. My serious ruling is that it is up to the Minister of Lands to answer.

Laughter

Hon. Opposition Members: Hear, hear!

Mr Speaker: The hon. Member of Parliament for Namwala can complete his question and the Hon. Minister of Lands will answer.

Hon. Opposition Members: Hear, hear!

Major Chizhuyuka: Mr Speaker, I have already completed my question.

Lieutenant-General Shikapwasha: Mr Speaker, I thank the hon. Member of Parliament for Namwala, Hon. Chizhuyuka for that question. Sir, one of the biggest problems that we have over illegal allocation of land is that we have leaders that are advocating anarchy on the allocation of land.

Mr Sichilima: Hammer Minister!

Lieutenant-General Shikapwasha: This has become a political issue and we degenerate the land which is very valuable for the future generations we reduce to being sold so cheaply. Therefore, this Government has stood very firmly on those that are illegally constructing structures where they have not been given title or where they have not applied or if they have done it illegally. Every demolition means that our officers have researched to find the legality of that structure being there. And if it is illegal, it must be demolished.

Mr Muntanga: At night!

Lieutenant-General Shikapwasha: Mr Speaker, the law does not go to sleep.

I thank you, Sir.

Hon. Government Members: Hear, hear!

COMPLETION OF THE GWEMBE-TONGA DEVELOPMENT PROJECT

269. Mr Mooya (Moomba) (on behalf of Mr Sejani) (Mapatizya) asked the Minister of Energy and Water Development:

(a) when the Gwembe-Tonga Development Project would be completed;

(b) what major projects had so far been completed by the Project; and

(c) what would happen to the projects which have not been completed, such as the Bottom Road.

Mr Sichilima: Mr Speaker, the Gwembe-Tonga Development Project whose main objective was to mitigate some of the negative impacts resulting from the construction of the Kariba Dam came to an end on 30th September, 2006. Not all the planned activities on the project have been done due to limited budget.

The projects that were completed are as follows:

Construction of the Bottom Road

(i) 393 kilometre of road de-mined;

(ii) planning and design of the total 721 km of Bottom road completed; and

(iii) construction of seven culverts along the Munyumbwe/Chipepo road.

Development of Water Resources

(i) thirty boreholes were drilled;

(ii) three dams and one weir have been constructed; and

(iii) one water reticulation was rehabilitated and constructed at Lusitu.

Electrification

Sinazongwe District: Chiefs palaces, some schools and clinics, public institutional houses, irrigation schemes, Kaluli Development Foundation.

Gwembe District: Chiefs palaces, some schools and clinics, public institutional houses, Chipepo harbour, parishes and Munyumbwe Township.

Siavonga District: Mundulundulu Sandy Beach, Chief Simamba’s palace, Lusitu Irrigation Scheme and Lusitu Water Works.

Technical Assistance and Supplies

(i) 6,078 households were provided with high yielding crop varieties of maize, sorghum, pearl millet, cassava, beans and groundnuts;

(ii) forty-one farmer cooperatives were established and 150 of their members were trained in co-operative management;

(iii) sixty-four community agriculture workers were trained and provided with bicycles and equipment for extension services, land-measuring tapes, weighing scales and radios for farm forums;

(iv) two irrigation schemes were completed, one in Siavonga and another in Sinazongwe;

(v) nineteen irrigation team leaders trained;

(vi) two trucks and a tractor procured;

(vii) ten dams were planted with fingerlings in Sinazongwe;

(viii) thirty Boran bulls were distributed across the project area to improve the local breeds;

(ix) livestock drugs to treat 55,000 animals (cattle, chickens, goats) were distributed for treating various diseases;

(x) eleven veterinary camps provided with veterinary support equipment (eleven solar refrigerators, eleven motor bikes and veterinary kits)

(xi) twenty-two community livestock auxiliaries trained and provided with basic transport (bicycles); and

(xii) 600 treadle pumps distributed to communities across project area. One treadle pump to cater for three households.

Achievement of the Health Status Objective

(i) four new clinics were constructed and installed with solar panels. Twenty clinical staff houses were built with VIP toilets;

(ii) one clinic at Chabbobboma was rehabilitated;

(iii) one school (Nkandanzovu) was constructed including twelve staff houses were built with VIP toilets. Solar panels were also installed;

(iv) 102 members of the neighbourhood health committees were trained and provided with 102 bicycles; and

(v) 51,168 people sensitised on dangers and prevention of HIV/AIDS.

Programs such as the bottom road and other developments that were not completed have been included in the Fifth National Development Plan. As you may be aware, grading of the bottom road is an on going programme.

I thank you, Sir.

Mr Mooya: Mr Speaker, may I know the value of the projects he has tabulated?

Mr Sichilima: Mr Speaker, the value as estimated, if we give out the figure now we may mislead the nation because some of it was not completed due to change of time. This will keep on coming. Maybe for the benefit of the Members, and with your permission, I wish to lay the document on the Table so that Members of Parliament can explain to the members of the public.

Mr Sichilima laid the document on the Table.

Mr Muyanda (Sinazongwe): Mr Speaker, I thank you for allowing me to ask a very sincere and frank question. Why is the Hon. Deputy Minister of Energy and Water Development (Mr Sichilima) so strong in misleading the nation and this august House over projects which have not taken place in Gwembe, Sinazongwe and Siavonga?

Sir, you will recall …

Mr Speaker: Order! You have already asked your question. You asked why he is bent on misleading the nation. What other question do you want to ask?

Mr Muyanda: I thank you for your guidance. My second question is …

Laughter

Mr Muyanda: … why has the Minister certified that schools were electrified in the valley when this august House had a delegation to Southern Province, specifically Sinazongwe and we found nothing done by the Tonga/Gweembe Project? By then the Minister of Energy and Water Development was Hon. Mpombo. May the hon. Minister brief this august House on these two major points, please?

Mr Speaker: The hon. Minister of Energy and Water Development will not give a bonus answer. He will choose one of the two questions.

Laughter

Mr Sichilima: Mr Speaker, I will start by urging my colleagues that what we give out here is researched. Besides, the projects that we have mentioned here which have been completed are there for all to see. There is no time that the Government committed itself to electrifying each and every school in that area. Assisting people with seed was done only once because this is not an everyday thing. Mr Speaker, even when the people visited, they did not trace those who were assisted because it happened a year ago.

Mr Speaker, on the issue of the physical structures that are there, one problem that we have in that area is that even palaces, one chief decided to move out of the palace to settle in another area, but still wanted the Government to shift the electrification lines to where he is. I can only urge the hon. Member to educate our brothers and sisters that what was put there is for our good use, and these are things like clinics.

I thank you.

Mr Syakalima (Siavonga): Mr Speaker, in his submission, the Minister stated that the Bottom Road is an on-going project where they are grading. I would like to find out whether grading can be on-going when it has not yet started.

Mr Sichilima: Mr Speaker, it saddens me when leaders rise to mislead the nation. A gravel road …

Mr Speaker: Order! That word is unparliamentary.

Mr Sichilima: I withdraw that statement. Sir, in answering the question raised by my young brother from Siavonga, I would like to say that when a gravel road is graded this year, it does not mean that it will remain permanent. The terrain is rocky and mountainous and those factors cannot make a road all weather. Sir, in my reply, I said, three hundred and seventy three kilometres was graded by the on-going works. The plan is underway and this is mentioned in the Fifth National Development Plan and later even a better road might be designed for that area.

I thank you.

Mr Ntundu: Mr Speaker, in response to the answer given which is misleading to the nation, I would like to find out from the Minister whether he has been to Gweembe and he should also name this chief he is accusing of having wanted the palace to be put in another place. May he be specific?

Mr Sichilima: Mr Speaker, you will recall that this subject of Gweembe is a hot one because recently it was live on radio and one chief was there who talked what I am talking about.

Mr Speaker, I have been to Gweembe and in areas where the hon. Member has not been.

Laughter

Mr Sichilima: Mr Speaker, the projects that he is talking about are well known to me. Mr Speaker, the issue of the school which is said to have been deserted is there. I would like to appeal to hon. Members to go and educate our brothers to see that they go back to these services which have been put there permanently.

I thank you.

Mrs Musokotwane: Mr Speaker, I would like to find out from the Minister when the Bottom Road was last graded.

Mr Sichilima: Mr Speaker, the roads in general are planned …

Hon. UPND Members: Bottom Road.

Laughter

Mr Sichilima: … by the Government and this Bottom Road was worked on. On when it was graded, my colleagues in the Ministry of Works and Supply are on the ground and have the answer.

I thank you.

Mr Muntanga: Mr Speaker, I want to have serious answers from the Government. The question of the Gweembe/Tonga programme is a serious issue which is bent on reducing the suffering of the people in the Gweembe Valley after the construction of the hydro electric power station. Is this Government satisfied with what has been stated now as the correct things to reducing the sufferings of the people of Gweembe Valley and not even addressing the other areas that have been uncovered?

Mr Mutati: Mr Speaker, the issues of displacement are critical to the Government and we do know how much the people in that area have suffered. What we have attempted to do may not fully address what the people in the area have suffered including the Bottom Road.

You may be pleased to know that in the annual work plan for the Ministry of Works and Supply, we have provided K5 billion to begin work on the Bottom Road.

I thank you.

TRANSFORMATION OF THE FORMER PRESIDENT’S CITIZENSHIP COLLEGE IN KABWE INTO A UNIVERSITY

270. Mr Imenda asked the Minister of Education when the former President’s Citizenship College in Kabwe will be transformed into a fully fledged university.

The Minister of Education (Professor Lungwangwa): Mr Speaker, the Government has been working on turning the former President’s Citizenship College, now called the National College for Management and Development Studies, into a third public university by the end of 2006.

However, because of the pending financial obligations in winding up the college into a public university, it was not feasible to transform the college by the end of  2006.

The key obligations in this transformation lies in paying of severance packages of staff and clearing off the debt stock of the college which Government is currently assessing. A special board of survey has been appointed by the Secretary to the Treasury for the purposes of winding up the affairs of the college. The special board of survey is expected to submit its report this month February 2007.

Immediately, these obligations are cleared the ministry will issue a statutory instrument announcing the commencement of the establishment of the university.

I thank you, Sir.

Mr Imenda: Mr Speaker, is the hon. Minister aware that as a matter of deformation a country like Uganda during the time of Museveni managed to have a university in every province. Why are we, as a country, so relaxed to have education as a priority into considering that education is the basis of development?

Professor Lungwangwa: Mr Speaker, the Government is very aware and very committed to the provision of education, and in particular, tertiary education. A lot has been done in the last five years to create an environment for the private sector investment in tertiary education. Currently we have six private universities which are operating side by side with the two public universities. The Government has plans to accelerate private sector investment as well as public sector investment in tertiary education. If the hon. Member cares to read the current document, he would understand the position of the Government in this regard to the importance of human capital in national development or in the transformation of this economy into a middle even economy. It is very clear that the commitment is there and the Government is serious about taking education as a foundation for development of this country.

I thank you, Sir.

Mr Sikota: Mr Speaker, seeing that the hon. Minister has stated that there are some problems with regards to PCC and the starting up of a university there, I wonder whether the hon. Minister and the Government have considered, whilst waiting for these problems to be solved in Kabwe, going to other colleges where the Government had stated it wanted to upgrade into a university namely, the college in Livingstone which does not have those problems.

Professor Lungwangwa: Mr Speaker, I am not quite sure what the hon. Member is referring to. If the hon. Member is referring to the current college which offers teacher training, that is, David Livingstone Teacher Training College, that would just be a college or a university college offering teacher training. The third public university would be a broad-based academic institution offering diverse academic programmes in line with other public universities.

I thank you, Sir.{mospagebreak}

ZESCO FINANCIAL OPERATIONS

271. Mr Kasongo asked the Minister of Energy and Water Development what measures the Government had put in place to enable ZESCO operate on a financially sustainable basis.

Mr Sichilima: Mr Speaker, the Government is committed to ensuring that ZESCO operates in a financially sustainable manner. It is in this light that the Government decided to embark on a commercialisation programme, which aims at improving the financial performance of ZESCO among other things. The key activities that would boost revenues, increase operating margins and improve service delivery include the following:

(i) Metering of all existing customers and ensuring that no new customers are connected without a metre;

(ii) installing prepayment metres;

(iii) reduction of billing errors and improvement of revenue collection; and

(iv) controlling of costs.

In order to have a tariff that will take into account the economic efficiency, financial viability and social objectives of the utility a cost of service study was commissioned. The study has among other things shown that the current tariff levels are low and will need to be adjusted to cover the full cost of producing electricity.

Further, the Government secured about US$300 million through the power rehabilitation project for the refurbishment of the power generation, transmission and distribution infrastructure so as to improve the reliability of supply and financial viability of the utility.

The Government has also established the rural electrification authority (REA) in an effort to relieve the financial burden on ZESCO of implementing non-profitable rural electrification projects. Such projects will now be implemented with funds from REA.

I thank you, Sir.

STIMULATION OF ZAMBIA’S INDUSTRIAL DEVELOPMENT

272. Mr Kasongo asked the Minister of Commerce, Trade and Industry what measures the Government had put in place to stimulate Zambia’s industrial development.

The Deputy Minister of Commerce, Trade and Industry (Ms Siliya): Mr Speaker, I wish to state from the onset that the overall policy of the Government has shifted since 1991, to make the private sector the engine of growth. The role of Government is to facilitate the development of the private sector driven economy.

In order to make the private sector thrive, Government has stabilised the macroeconomic fundamentals by lowering inflation, interest rates, and stabilising the exchange rate. The lowering of inflation (to a single digit) has led to greater investor confidence, whereas the lowering of interest rates (to approximately 20 per cent) has led to increased access to credit by the private sector. The stabilisation of the exchange rate has had a positive impact on the private sector by making it easier for businesses to plan.

The stabilisation of these macroeconomic fundamentals has led to increased investment activity in Zambia’s industry, by increasing investment by Zambians and foreigners in the Lusaka Stock Exchange, in mining, agriculture, tourism and manufacturing to mention, but a few areas of Zambia’s industrial development.

In addition to stimulating Zambia’s industrial base through stabilising the macro-economy, the Government has come up with the commercial trade and industrial policy whose vision is and I quote.

‘to develop an enabling economical environment in Zambia which supports private investment, enables the development of the domestic productivity capacities and contribute to the expansion of Zambia’s international trade.’ End of quote.

The commercial trade and industrial policy aims at developing and open competitive dynamic and sustainable private sector rate industrial sector. One of the specific objectives of this policy includes the stimulation and encouragement of value additional activities on primary exports, as a means of increasing national export earnings and creating employment opportunities.

Anchored on the commercial industrial and trade policy are the manufacturing commerce and trade policy chapters of the Fifth National Development Plan 2006 to 2010, which contain specific plans and programmes for stimulating Zambia’s industrial development in the following areas:

1. Investment Promotion

2. Capital Market Development

3. Technology and Industrial Skills Development

4. Micro Small Media Enterprise Development and the Citizens Economic Empowerment Initiative

5. Rural Industrialisation

6. Product Quality Improvement

7. Crosscutting Issues such as HIV/AIDS Gender and the Environment.

Sir, the Government has put in place measures to make the private sector the engine of growth. However, there is need for an attitude or mind set change by the private sector participants in making these measures succeed in stimulating Zambia’s industrial development. For example, the credit culture of Zambians needs to change and it is hoped that the Credit Reference Bureau will help to achieve this.

Mr Speaker, to operationalise these measures, which are meant to stimulate Zambia’s industrial development, Government has established a number of key institutions such as the Zambia Development Agency (ZDA), Multi-Facility Economic Zones (MFEZ), the Citizens Economic Empowerment Commission (CEEC), to mention but a few.

Sir, with regard to the Zambia Development Agency, it is a one-stop window to facilitate both local and foreign investors to do their business with less barriers. This development will help improve the investment climate and thereby, help stimulate investment and industrial development in the country. Under the Zambia Development Agent, there shall be established a division charged with the task of promoting Micro, Small and Medium Enterprises, which will administer the Micro, Small and Medium Enterprise Development Fund, which will:

(a) Assist enterprises, particularly, the Micro, Small and Medium Enterprises to access affordable finance.

(b) To remove administrative barriers to the establishment of business enterprises.

(c) To improve the regulatory framework and establishment of multi-facility economic zones in order to enhance both exports and locally oriented manufacturing industries.

(d) To provide adequate infrastructure such as roads, rail and telecommunications.

(e) To ensure access to affordable modern technology.

(f) To address issues of low domestic demand and crosscutting issues such as HIV/AIDS gender and environment.

Mr Speaker, on the Multi-Facility Zones, these will help promote both exports and oriented domestic oriented industries in special industrial zones. The zones will have the entire necessary infrastructure provided for the easy commencement and conduct of manufacturing activities. The programme to develop the Multi-Facility Economic Zones has already initially started with the establishment of the Lusaka and the Chambeshi Multi-Facility Economic Zones. It is the plan of Government to roll out the programme of establishing the Multi-Facility Zones with the help of the private sector to every district of Zambia. The Multi-Facility Economic Zones investors will enjoy attractive fiscal incentives coupled with care services including assistance in obtaining relevance licences, permits and facilities. The Multi-Facility economic Zones investors are thus assured of lower operational course, faster set up and smooth operations.

Sir, as regards the Citizens Economic Empowerment, the Citizens Economic Empowerment Commission will administer the citizens Economic Empowerment Fund which will seek to empower Zambians in the broadest sense possible. Some of the measures that will be used to implement Citizens Economic Empowerment Initiative will include:

1. Targeting citizens, citizens owned, citizens influenced companies for support to acquire economic assets in specific sectors.

2. To create, develop and designate specific sectors of the economy where only citizens, citizens owned companies or citizens influenced companies may trade or be active.

3. Creation of centres of excellence in strategic locations, equipped with appropriate processing equipment will be made available to the citizenry at a fee for value addition.

4. Requiring that the procurement of Government, the mines or other large scale business, that is, companies with up to 50,000 be subject to requirement that at least 30 per cent in value of that procurement be awarded to citizens, citizens owned companies or citizens influenced companies and specify an associated implementable carrot and stick mechanism for compliance purposes.

5. Requiring and implementing the requirement that for most foreign direct investment be implemented on the basis of joint ventures with citizens, citizens owned companies or citizens influenced companies.

6. Requiring and implementing the requirement that for certain Lusaka Stock Exchange listed companies limits be prescribed on the level of control of foreigners in order to enhance the participation of citizens, citizen owned companies or citizen influenced companies in those companies with foreign participation.

7. Creating and promoting business incubation centres with the participation of the private sector, especially the financial institutions at strategic locations in the country.

8. Revising the general school curriculum to incorporate and emphasise entrepreneurial skills development at primary, secondary and tertiary education levels.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Kasongo: Mr Speaker, the concept of private sector investment has always favoured non Zambians. When is the Government going to address this imbalance in line with the Economic Empowerment Bill, which was passed in this House last year?

The Minister of Commerce, Trade and Industry (Mr Konga): Mr Speaker, it is true that the Citizens Economic Empowerment Act was passed in this House. At this effect, the Government has appointed commissioners to address all the concerns that have disadvantaged citizens.

I thank you, Sir.

Mr Mbewe (Chadiza): Mr Speaker, I would like to find out why it is not compulsory for investors to partner with Zambians.

Mr Konga: Mr Speaker, the Government as we have indicated, is going to ensure that once the Citizens Economic Empowerment Commission is functional, at least 30 per cent of investment of shares will be for Zambians.

I thank you, Sir.

Mr Mushili (Ndola Central): Mr Speaker, while they know very well that the real problem why indigenous Zambians do not have businesses is because of liquidity problems. Why can the Ministry of Commerce, Trade and Industry introduce a system such as black empowerment, which has been implemented and is working well in South Africa? The real problems that Zambian businessmen are facing are lack of money.

Secondly, Zambians have always been promised the tax free zone and Ndola was mentioned to be one of the cities to enjoy the tax free zone. This is one of the things that I will ask the Ministry of Commerce Trade and Industry to implement as one way of stimulating the development of industry, which no longer exists.

Mr Speaker: The hon. Minister of Commerce, Trade and Industry will answer one of those questions.

Mr Konga: Mr Speaker, His Excellency the President of the Republic of Zambia and the President of the People’s Republic of China commissioned the Chambishi Muilt-Economic Facility Economic Zones on Sunday, 4th February, 2006, located in Kitwe. I think that is one of the issues that will be started in Chambishi. As soon as the private sector comes forward, it will be developed like other areas in Ndola.

Thank you, Sir.

Mr Kambwili: Mr Speaker, how I wish this Government could move away from theories and become…

Mr Speaker: Order! Ask you question hon. Member for Roan.

Mr Kambwili: I am coming, Mr Speaker. Thank you for your guidance.

Mr Speaker: No, ask your question now. Or you do not ask at all.

Mr Kambwili: Mr Speaker, is the hon. Minister aware that when Dunlop Zambia Limited, Johnson and Johnson Zambia Limited and Colgate Palmolive Zambia Limited withdrew from Zambia, the main reason being that of tax? What is this Government doing to reduce tax so that they can attract back the investors that left as a result of tax?

Mr Konga: Mr Speaker, the Government through the Zambia Development Agency is giving tax incentives to industries and investors. I think that question can be addressed if those people come. They will be given incentives.

Thank you, Sir.

Mr Speaker: Order! I will guide the House to study the very elaborate answer given by the hon. Minister of Commerce, Trade and Industry on this question. Secondly, I would like to encourage hon. Members, especially those who have come to this House for the first time to look at the Act that the hon. Minister referred to. It provides a lot of information on indigenous empowerment. You will find that very helpful.

Business was suspended from 1757 hours until 1900 hours.

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MOTIONS

SUSPENSION OF STANDING ORDERS 19 AND 20

The Minister of Information and Broadcasting Services (Mr Mwaanga): Mr Speaker, I beg to move that the Standing Orders 19 and 20 be suspended to enable the House to sit from 1415 hours to 1800 hours on Friday, 9th February, 2007, if business is not concluded before that hour.

Mr Speaker, hon. Members may recall that when I indicated the business of the House for this week on Friday, last week, I informed the House that the hon. Minister of Finance and National Planning will present this year’s Budget of Friday, 9th February, 2007.

It is for this reason that I am moving this motion to enable the House to sit in the afternoon, tomorrow rather than in the morning, as is normally the case. This is a non-controversial motion and I am confident that it will be supported by all hon. Members in the House.

Mr Speaker, I beg to move.

Hon. Members: Hear, hear!

Mr Muntanga (Kalomo): Mr Speaker, in supporting the motion which is straight forward, I would like, at this stage, to urge the Government that it is normal that we should have the Budget given in the last week of January, and the fact that we had a rare opportunity of having our Parliament opened in October, we were looking forward that for the first time, there was a chance of the Budget being brought to Parliament before the end of the year in December. Then we were thinking that at that time, if the Budget was brought in December, we would have had an approved Budget before the beginning of the year.

Mr Speaker, it is very important that the Budget is not delayed because during the period of the three months that the Budget is being debated, the Government business continues and rise heavily on the ever authority of the President to give an expenses. It is at this time that we have the civil servants that will do everything they want to do as evidenced with the K3 trillion loss of money.

Mr Speaker, I welcome this adjournment so that the hon. Minister of Finance and National Planning present the Budget.

I thank you, Sir.

Mr Lubinda (Kabwata): Mr Speaker, I would like to adopt the debate for the hon. Member for Kalomo in so far as the presentation of the Budget is concerned.

However, over and above all, the fact that the Budget presentation has been delayed this year, it therefore, means that the Government will have time to do good work, especially on the Estimates.

Mr Speaker, for the last two years, this House has had to ask the Government to withdraw the aspects of the estimates because of inaccuracies and that makes it very difficult for this House to debate the Estimates of the people.

Mr Speaker, I would like also to remind the Government that on money basis it produces documents that assist this House and the people out there to understand the basis on which the Government proposes its Budget and Estimates. These documents include one very important report, the Economic Report.

As the hon. Minister of Finance and National Planning, the Economic Report for 2006 should have by now, been presented to the House for us to prepare ourselves to assimilate what shall be contained in the Budget speech that will be presented to us tomorrow. That has not been presented yet.

That being the case, I would like to appeal to my colleagues in Government that soon after the Budget speech has been delivered to this House, before they provide to us the Estimates, which, I am reliably informed might take a week before we see them, they do produce and present to us the Economic Report.

Mr Speaker, another matter with regard to the Estimates is the fact that last year, there was an addendum provided to the Estimates that which they referred to as the Comparative Figures between 2005 and 2004. As you are aware, the Budget Estimates for last year contained something like 1,061 pages that is a very voluminous document.

Above that, we also have several addenda provided, it makes analysing the Budget extremely difficult by Members of Parliament.

I would like to appeal to the hon. Minister of Finance and National Planning that if they have not yet concluded the offering of that Budget in such a fashion that would not be easy for us to analyse the content and intention of the budget, they are better off delaying the presentation of the Estimates rather than bringing fear on document that will require extra information on before we can debate it.

Mr Speaker, in 2003, debating this particular motion, I did raise one concern. That concern might have been extremely valid then because we were struggling to reach the HIPC completion point. However, the fact that we have attained the HIPC completion point does not still subtract from the substance of the matter that I raised. I want to reiterate what I said then. It is very difficult for us to celebrate as parliamentarians. It is extremely good that when we see the Budget Speech of the hon. Minister we relax in debating. We have to ask ourselves at whose expense we are doing it. We also ought to ask ourselves who is attending these functions and what kind of trillions the Members of Parliament are given to interact with the people that ministry intends to provide interaction with us.

Very often, when we have functions such as the one that the hon. Minister of Finance and National Planning has already started preparing, and I think he started preparing for it last week on the grounds of this National Assembly.

We do not only have the opportunity to discuss the Budget with people in the business sector because most often, the grounds of Parliament are over crowded by people who do not even understanding the spelling or the meaning of the Budget. I would like to ask the Leader of Government Business that it is too late now because the Government money has already been spent on buying alcohol and food for us to have tomorrow. However, one thing that we are still able to do is to ensure that on his invitation list, he excludes all those people who shall be coming here for no other reason, but to pay patronage to those in Government; and here, I am talking about cadres.

I think it is important for us to interact, but please the environment also aught to be conducive for us to interact. If you have cadres here, the interaction between the Opposition and those in Government becomes difficult.

Unfortunately, as a society, we have not managed to teach our people. I would like to urge all of us to take this as a challenge, to teach our people to relate to each other in the very same way that we, in Parliament, relate to each other.

We are friends, we had tea together, but our people out there do not seem to understand that. They do not seem to appreciate that. When they are here, they think that Government Ministers are their property and cannot be accessed even by hon. Members of Parliament, especially, from the Opposition. That makes it difficult for us to achieve the purpose for which those functions are organised and for which the Zambian people pay so much money.

Sir, I would like to say that what I am talking about might be above the head of my friend Bikilon …

Mr Speaker: Order, the hon. Member will withdraw the phrase above the head of somebody.

Laughter

Mr Lubinda: I with draw and I thank you, Sir.  I just want to advise my good friend Bikilon to listen to me because what I am saying, he must learn from.

Laughter

Mr Lubinda: Mr Speaker, let me end by urging my Colleagues from the Opposition that the business we are going to start tomorrow is, extremely, important. It is one of the most important functions of this House. I would like to appeal to all the different political groupings on this side to take that matter seriously and to ensure that we create some kind of interaction so that as we debate, we are seen to be debating for the sake of; (a) developing our country; and (b) ensuring that our Colleagues on the Government Benches will listen to what we are saying to what we are saying because we intend to contribute positively and intelligently to the authoring of our national budget.

With those few word, I would like to support the motion and I thank you.

Hon. Members: Hear, hear

Mr Mwaanga: Mr Speaker, I would like to thank the hon. Members who have spoken in support of this non-controversial and straightforward motion. I would also like to thank those hon. Members who have supported this motion through their golden silence.

Mr Speaker, an impression may have been created that the budget is being presented late or the budget has been delayed during this year, 2007. I just want to allay those fears by stating categorically that where as in certain years it has been the practice, and I must emphasise the word ‘practice’, to present the budget during the last Friday of January, it is not a constitutional requirement. The constitutional requirement is that the budget has to be presented to Parliament within ninety days from the commencement of the financial year which means that the budget can be presented to this House before the 31st March of any given year. I hope that this explanation is clear because the budget is being presented within the time limit which is set by the Constitution of Zambia.

Hon. Government Members: Hear, hear!

Mr Mwaanga: Mr Speaker, I would like to respond to what Hon. Lubinda has said. I have heard the very cynical manner in which he has made his contribution and this is the same manner in which he does make this contribution on this particular motion year in and year out since he has been in this House.

Laughter

Mr Mwaanga: This is welcome. It adds a lot of humorous relief to this debate which is necessary sometimes as we do our work.

Mr Speaker, otherwise, I am very grateful for the support which this House has given unanimously to this motion and I thank you all for your support.

Mr Speaker, I beg to move.

Hon. Members: Hear, hear!

Question put and agreed to

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ADJOURNMENT

The Minister of Information and Broadcasting Services (Mr Mwaanga): Mr Speaker, I beg to move that the House do now adjourn.

_______

The House adjourned at 1916 hours until1415 hours on Friday, 9th February, 2007