Friday, 20th November, 2015

The House met at 0900 hours

[MR SPEAKR in the Chair]

NATIONAL ANTHEM

PRAYER

________

BUSINESS OF THE HOUSE

The Vice-President and Minister of Development Planning (Mrs Wina): Mr Speaker, I rise to give the House some idea of the Business it will consider next.

Sir, on Tuesday, 24th November, 2015, the Business of the House will commence with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Then, the House will resolve into Committee of Supply on the 2016 Estimates of Revenue and Expenditure and will consider the following Heads:

    Head 21 – Loans and investments – Ministry of Finance; and

    Head 37 – Ministry of Finance.

On Wednesday, 25th November, 2015, the Business of the House will begin with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Thereafter, the House will consider Private Members’ Motions, if there will be any. The House will then consider the Second Reading Stages of the following Bills:
    
(i)    The Constitution of Zambia, N.A.B No.16 of 2015; and

(ii)    The Constitution of Zambia (Amendment) Bill, N.A.B No.17 of 2015.

After that, the House will consider the Committee Stage of the Gender Equality and Equity Bill, N.A.B No.19 of 2015. The House will then resolve into Committee of Supply on the Estimates of Revenue and Expenditure and the following Heads will be considered:

    Heads 88 and 90-98 – Office of the President – Provinces.

Sir, on Thursday, 26th November, 2015, the Business of the House will start with Questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Then the House will resolve into Committee of Supply on the 2016 Estimates of Revenue and Expenditure and will consider the following Heads:

    Heads 88 and 90-98 – Office of the President – Provinces.

Sir, on Friday, 27th November, 2015, the Business of the House will commence with the Vice-President’s Question Time. This will be followed by Questions, if there will be any. After that, the House will deal with presentation of Government Bills, if there will be any. Then, the House will resolve into Committee of Supply on the 2016 Estimates of Revenue and Expenditure and the following Heads will be considered:

    Heads 88 and 90-98 – Office of the President – Provinces.

Mr Speaker, I thank you.

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CLARICATIONS BY HER HONOUR THE VICE-PRESIDENT AND MINISTER OF DEVELOPMENT PLANNING

IMPORTANT NATIONAL ISSUES

Mr Speaker: Hon. Members, before we commence Her Honour the Vice-President and Minister of Development Planning’s Question Time, I will give Her Honour the Vice-President  and Minister of Development Planning an opportunity to clarify some statements arising from the previous session. Any follow-up questions on the statement that will be given may be pursued during Her Honour the Vice-President and Minister of Development Planning’s Time.

The Vice-President and Minister of Development Planning (Mrs Wina): Mr Speaker, I rise to give clarification to some of the queries raised during Her Honour the Vice-President and Minister of Development Planning’s Question Time of the 16th and 23rd October, 2015. I had indicated to this august House that I will return to give further information after verifying the issues.

Mr Speaker, Hon. Miyanda, Member of Parliament for Mapatizya Constituency, had alleged that the reason for the low water levels in Kariba Dam is that the Zimbabweans were pumping millions of litres of water at a place called Deka Dam for their mines in Hwange.

Mr Speaker, the Zambezi River Authority water user’s database updated in 2009 indicates that Hwange Thermal Power Station in Zimbabwe is the largest single abstractor of water from the Zambezi River at an average of 2 million cubic metres per day. The water is pumped from a point near Deka Drum. This water is largely used as cooling water for the Hwange Thermal Power Plant part of which drains back into the Zambezi River through Deka River. Both the abstraction point of the Deka River and the Zambezi River Confluence are located upstream of Lake Kariba.

Mr Speaker, the annual average inflow into the Kariba Dam from the Zambezi River at Victoria Falls is in the order of 34 billion cubic metres. The total storage capacity for energy also called live storage, for Kariba is 65 billion cubic metres. Thus the abstraction by Hwange Power Station translates to 2 per cent and 1 per cent of the Zambezi River annual average flows at Victoria Falls and the Kariba live storage, respectively.

Mr Speaker, water balance computations for the Kariba Reservoir have also shown that this abstraction is quite insignificant as far as the generation of energy is concerned at the Kariba Dam. For instance, this abstraction translates to about 1.5 per cent of the actual amount of water used for power generation at Kariba in 2014.
 
  Sir, it is further worth noting that all abstractions independent of the lake take into consideration of the provisions of the Southern African Development Community (SADC) Protocol on Shared Watercourses that stipulates that each riparian State’s need for socio-economic development can abstract up to 1 per cent, obviously without negatively affecting the ecosystem of the shared watercourse.

Mr Speaker, in view of the above, the abstraction has not been the cause of the water shortage on the Lake Kariba, just as the Maamba Collieries Thermal Power Station’s abstraction directly from the lake in the first quarter of 2016 will not, in any way, cause a water shortage on the Lake Kariba.

Mr Speaker, the second query came from Hon. Jack Mwiimbu, Member of Parliament for Monze Central, regarding the point that the Local Government Service Commission (LGSC) was charging councils for its sittings.

Sir, our investigations have revealed that the LGSC has neither levied councils for its sittings ...

Mr Livune: Question!

The Vice-President and Minister of Development Planning: … nor engaged in any corrupt practices as it acts in the best interests of the councils. It should be noted that when the hon. Minister of Local Government and Housing issued a directive to the commission on 17th October, 2015, to urgently address human resource matters and cases at the Livingstone City Council, the commission had not yet been funded and had already exhausted the August, 2015, funding. Therefore, the council, through the Society for Local Authorities Chief Executives (SOLACE), agreed to make minimal contributions towards the commission’s urgent sitting in Livingstone to deal with outstanding human resource cases of the Livingstone City Council as well as other councils in the Southern Province.

Mr Speaker, the commission, therefore, remains resolute in executing its mandate and ensuring that employees of the LGSC exercise their duties in a professional, diligent and meritorious manner in order to achieve national development through the effective and efficient delivery of the necessary social services to the communities.

Mr Speaker, let me now respond to a query by the hon. Member of Parliament for Lukulu West, Hon. Mutelo, who wanted to know the progress on the Katunda/Lukulu/Mumbeji Road.

Sir, works for the upgrading to bituminous standards of the 270 km of the Katunda/Lukulu/Mumbeji Road were advertised in August, 2015. The road was split into three lots for ease of implementation and these are:

(a)    Lot 1 is Katunda to Sitaka, with  a length of 102 km;

(b)    Lot 2 is Sitaka to Lukulu, with a length of 87 km; and

(c)    Lot 3 is Lukulu to Mumbeji, with a length of 86 km.

Mr Speaker, the evaluation process for the three lots have been concluded. It is envisaged that the works will commence in the first quarter of 2016.

Sir, finally, Hon. Imenda, Member of Parliament for Luena Constituency, wanted to know whether I was aware about the serious shortage of water in the Limulunga Royal Village. I consulted the Western Water and Sewerage Company which services the royal village. I was informed that the shortage of water has been caused by the reduced borehole yields due to the decrease of underground water in the area. To address this issue, the company is in the process of deepening the boreholes so that more water can be abstracted. For a long-term measure, the Government, with the help of the German Government, has conducted the pre-feasibility study in the Western Province and is in the process of engaging consultants to prepare detailed designs and tender documents in readiness for the construction of the new water and sanitation infrastructure in the Western Province in order to improve the provision of water and sanitation services in the province.

Mr Speaker, I thank you.

Hon. Opposition Members: Hear, hear!

__________

HER HONOUR THE VICE-PRESIDENT AND MINISTER OF DEVELOPMENT PLANNING’S QUESTION TIME

Mr Namulambe (Mpongwe): Mr Speaker, before Ngabwe District was created, there were no problems with the location of polling stations or boundary problems between Kapiri Mposhi and Mpongwe Districts. However, following the creation of this new district, conflicts on the location of polling stations and boundaries have arisen and people are failing to register as voters because they are being forced to go to the newly created district, which seem to be in another constituency even before the Constitution is amended. What is the position of the Government on this matter? There has been no response to our correspondence to the Government and the Electoral Commission of Zambia (ECZ) to help us understand how the matter is being attended to.

  The Vice-President and Minister of Development Planning: Mr Speaker, the rural populations are very thankful to the Patriotic Front (PF) Government for creating new districts.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: Surely, there have been some issues regarding the delimitation of the districts as well as the constituencies and wards. The Government is still in the process of rectifying all the anomalies which have arisen out of the creation of the districts. I believe that the issue in question will be resolved as soon as possible. We will ensure that the Electoral Commission of Zambia (ECZ) Delimitations Committee as well as the provincial and district administrations are involved in this matter so that we can resolve it quickly.

Mr Speaker, I thank you.

Mr Musonda (Kapiri Mposhi): Mr Speaker, I would like Her Honour the Vice-President and Minister of Development Planning to comment on the assertions that she issued a decree banning the holding of political meetings, particularly on the Copperbelt Province.

The Vice-President and Minister of Development Planning: Mr Speaker, I thank the hon. Member for posing that question because we really need to put the record straight regarding this matter. First of all, the Vice-President of Zambia cannot issue a decree. This country is not a monarchy. This country is a democratic Republic ...

Hon. Opposition Members: Question!

The Vice-President and Minister of Development Planning: ... where its people enjoy all their rights.

Hon. Opposition Members: Aah!

The Vice-President and Minister of Development Planning: Sir, this is a country where the population enjoys the fundamental rights guaranteed by the Constitution.

Hon. Government Members: Hear, hear!

Mr Speaker: Order!

Let us have some order.

The Vice-President and Minister of Development Planning: Sir, regarding what was said about the meetings on the Copperbelt, I think that a verbatim report is there for anyone to see whether I had said that all the meetings had been banned on the Copperbelt. The problem we have is that there are media outlets which always like to manipulate issues. In my mother to tongue, we use the word, ‘kupesula’ to describe such a situation.

   Hon. Government Members: Hear, hear!

Mr Speaker: Order!

Meaning?  

The Vice-President and Minister of Development Planning: Mr Speaker, the word means the act of manipulating or changing details and not a minor ...

Hon. Government Members: Alteration.

The Vice-President: ... alteration.

Interruptions

Mr Speaker: Order!

The Vice-President and Minister of Development Planning: Mr Speaker, the manipulation of words can cause trouble in this country. People should report the words as they come out of someone’s mouth. They should not increase or reduce the amount of words. What I said in this House was that at the time permission was requested to hold meetings on the Copperbelt, the President of the Republic of Zambia, Mr Edgar Chagwa Lungu, was on the Copperbelt, and was engaged in discussions with the mining companies, workers, and trade unions to see how they could ...

Interruptions

Mr Speaker: Order!

The Vice-President and Minister of Development Planning: ... resolve the matters on the Copperbelt, particularly those associated with the operations of the mining companies. I had indicated that every political party has a right to assemble its members or to hold a political rally. However, the police assessed the situation and realised that it was not appropriate to hold public rallies at that time. Only those who took this statement out of context know the reason they did so.

Mr Speaker, the people of this country, and the political parties of this country have every right to hold public rallies anywhere, provided that they observe the laws and regulations prevailing. The police will advise whether it is suitable for a political party to hold a rally for its own security, or for the people in a particular area. I hope that those who are listening to what I am saying will also understand that we are not trying to stop any political party ...

Hon. Opposition Members: Question!

The Vice-President and Minister of Development Planning: ... from holding meetings.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: Mr Speaker, I believe that yesterday, you had ordered the hon. Minister of Home Affairs to give a ministerial statement on the incidents that happened in Luanshya last week or a few days ago. If an incident of that magnitude took place, as has been reported in the newspapers, and if there were Patriotic Front (PF) members involved in that fracas, I can only apologise.

Hon. Opposition Members: Aah!

The Vice-President and Minister of Development Planning: However, if what was reported in some sections of the media did not take place, then, I would like other people also to apologise.

I thank you, Sir.

Hon. Government Members: Yes!

Brig-Gen. Dr Chituwo: Mr Speaker, I want to understand where Her Honour the Vice-President and Minister of Development Planning stands with regard to the protection of the rights of citizens. When two people are communicating, one person, that is, the sender of the message may think that he has made himself clear, but the receiver may not receive the message in the way the sender intended it to be received. Does Her Honour the Vice-President and Minister of Development Planning still stand by the statement she made in this House that political parties should not go to the Copperbelt because of the challenges which are there? Her Honour the Vice-President and Minister of Development Planning stood in this House and swore to uphold and protect the Constitution, with regard to the rights of the citizens whose freedoms her Government must protect. Her words and actions are not very clear with regard to the protection of the rights of the citizens by the police.

Hon. Opposition Members: Hear, hear!

Mr Speaker: Order!

The Vice-President and Minister of Development Planning: Mr Speaker, we can dwell on this matter forever and ever. The issue is that there was no ...

Interruptions

The Vice-President and Minister of Development Planning: Excuse me.

Mr Speaker, there was no way the hon. Member can say that I said one thing, and now I am saying something else. I think I have explained what I said last time. What I said, as additional information, was that if the situation on the Copperbelt was volatile at that time, then no political party should hold meetings there, if possible.

Hon. Opposition Members: Aah!

The Vice-President and Minister of Development Planning: Mr Speaker, I did not say that from now onwards, no political party should hold a meeting on the Copperbelt. I do not remember saying those words. Maybe, the hon. Member was sitting somewhere else, and not inside here.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Mutale (Kwacha): Mr Speaker, I would like to find out from Her Honour the Vice-President and Development Planning how the e-Voucher system is benefiting the farmers in the areas where it has been introduced.

The Vice-President and Minister of Development Planning: Mr Speaker, I think that the e-Voucher system is going to benefit the farmers in the long run. There may be some teething problems after the introduction of the system, but you will find that as we move on, this system will be of great benefit to the farming community.  

Mr Speaker, you will notice that the people, who are crying the loudest, are in areas where the e-Voucher system was opposed. These are ones who were benefiting from the bad management of the system, initially. As far as this Government is concerned, this system has been introduced and we will run with it because we believe that farmers will benefit from it.

I thank you, Sir.  

Hon. Government Members: Hear, hear!

Mr Chansa (Chimbamilonga): Mr Speaker, I would like to find out from Her Honour the Vice-President and Minister of Development Planning, if all the farmers who sold their maize to the Food Reserve Agency (FRA) have been paid.

The Vice-President and Minister of Development Planning: Mr Speaker, the Government has done a commendable job this year ...

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: … in meeting the requirements of farmers, especially with regard to payments for the maize collected by the Food Reserve Agency (FRA). However, there may be some pockets, here and there, of farmers who have not received their payments yet. I believe that the Ministry of Agriculture is on top of the situation …

Interruptions

Mr Mwila: Yes!

The Vice-President and Minister of Development Planning: … because the Treasury has been very generous in supporting the ministry so that it meets the farmers’ requirements.

I thank you, Sir.

Mr Mbewe (Chadiza): Mr Speaker, life in Zambia has become unbearable. The cost of living has gone up. Prices for goods and services are changing every day ...

Interruptions

Mr Speaker: Order, on my right!

Mr Mbewe: … to the extent that most Zambians are failing to afford them.

Sir, does the Government have any plans to make the United States Dollar the legal tender in Zambia instead of allowing these daily changes in prices, and if not, why?

Ms Lubezhi: Dollarise!

The Vice-President and Minister of Development Planning: Mr Speaker, when Zambia attained Independence in 1964, I was there, and I saw the first notes of the kwacha. This currency, which I am very proud of, ...

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: … is the legal tender in this country. The Government has no desire, whatsoever, for now, to adopt the United States of America Dollar as the legal tender.

Mr Speaker, no one can claim that things in Zambia are rosy. We are definitely experiencing some economic hurdles. This Government is not sitting idly and watching its people suffer. This is why we are doing everything possible to ensure that we stabilise the kwacha to mitigate against the shocks that the whole country has experienced as a result of low copper prices, low water levels in our water bodies, which has resulted in the low capacity to generate electricity, and ultimately, in load-shedding everywhere.

Sir, these challenges are being experienced by everyone. The Zambian Government is not taking delight in seeing its people suffer under these conditions.

I thank you, Sir.

Mr Hamudulu: Sir, recently the hon. Minister of Justice appeared before the Parliamentary Committee that is considering the Constitution Amendment Bill and indicated that the Government had no position, yet, on the matter.

Mr Speaker, in view of the current rampant abuse of human rights being perpetrated by the Patriotic Front (PF), is Her Honour the Vice-President and Minister of Development Planning able to tell us the Government’s position on the Bill of Rights?

Ms Lubezhi: Correct!

Mr Speaker: Hon. Member for Namwala, …

The Vice-President and Minister of Development Planning: Mr Speaker, …

Mr Speaker: Just a moment, Your Honour the Vice-President and Minister of Development Planning.

Hon. Member for Namwala, can you stop with the running commentaries? Continue, Your Honour the Vice-President and Minister of Development Planning.  

The Vice-President and Minister of Development Planning: Mr Speaker, the Government of the Republic of Zambia has a stance on the Bill of Rights. The position is that the Bill of Rights will be taken to the referendum.

I thank you, Sir.

Mr Livune (Katombola): Mr Speaker, charity begins at home. What makes the Patriot Front (PF) cadres think that they can terrorise anyone, beat up people at the Inter-city Bus Station and harass politicians like United Party of National Development (UPND) President Hakainde Hichilema, and his deputy, Hon. G.B. Mwamba, on the Copperbelt? Why is the Ruling Party failing to discipline its cadres?

Ms Lubezhi: Hear, hear!

The Vice-President and Minister of Development Planning: Mr Speaker, there is no guarantee that the cadres who harass other people belong to the PF.

Hon. UPND Members: Aah!

Mr Mulenga interjected.

Laughter

The Vice-President and Minister of Development Planning: I am very surprised to hear this comment from the hon. Member. Even criminals who attack people are branded as PF cadres. This is not how it should be. Sometimes, I know that there are criminal elements who are not political cadres in our society who go on rampage attacking other people.

Sir, two or so months ago, there was a conflict somewhere on the Copperbelt, either in Ndola or Kitwe. Our members, including the PF District Chairperson, were arrested and the case is in court. So, you can see that when our members are involved, we take action.

Mr Mwila: Yes!

The Vice-President and Minister of Development Planning: Sir, there are some criminal elements who masquerade as PF cadres. These people may even belong to other parties.  

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Sing’ombe (Dundumwezi): Mr Speaker, the people who attacked the United Party for National Development (UPND) Secretariat in Kitwe were Patriotic Front (PF) cadres.

Interruptions

Mr Sing’ombe: Sir, is Her Honour the Vice-President and Minister of Development Planning branding her cadres as criminals? Why is she part of a Government of criminals?

Hon. UPND Members: Hear, hear!

Mr Speaker: Hon. Member for Dundumwezi, I would rather you withdraw the last part. The reason is very simple. The Government, which includes all of us seated here, has three branches which are: Legislature, Judiciary and Executive.

Laughter

Mr Sing’ombe: Mr Speaker, I withdraw the word ‘Government’ and replace it with ‘party’.

Mr Speaker: Her Honour the Vice-President and Minister of Development Planning can now respond to the question.

Hon. UPND Members: Hear, hear!

  The Vice-President and Minister of Development Planning: Mr Speaker, as explained, the incident that took place in Kitwe will be brought back to the House next week when the hon. Minister of Home Affairs will give his ministerial statement on the matter.

I thank you, Sir.

Mr Mwila: I am coming.

Mr Lufuma (Kabompo West): Mr Speaker, it is clear that the fundamental human rights of the citizens of Zambia are being trampled upon by the Patriotic Front (PF) Government, the PF- sponsored Zambia Police Force and their cadres with impunity.

Hon. UPND Members: Hear, hear!

Mr Lufuma: Sir, Zambia is not like a battleground ...

Mr Kalaba: Question!

Mr Lufuma: ... where the Opposition political parties are under siege. What happened on the Copperbelt has not been condemned.

Mr Speaker: What is your question?

Mr Lufuma: Sir, is Her Honour the Vice-President and Minister of Development Planning in a position to categorically condemn the barbarism of the PF on the Copperbelt which is eating away at our democracy?

Hon. Opposition Members: Hear, hear!

The Vice-President and Minister of Development Planning: Mr Speaker, the barbarism that the hon. Member is referring to is not being perpetrated by the PF cadres.

Hon. Opposition Members: Aah!

Hon. Government Members: Hear, hear!

Mr Speaker: Order!

The Vice-President and Minister of Development Planning: Sir, let me assure the hon. Members that Zambians enjoy their freedoms. Why is it that hon. Members of Parliament did not question an incident in which other Zambian citizens were attacked by United Party for National Development (UPND) cadres in Mazabuka recently.

Hon. Government Members: Hear, hear!

Hon. Opposition Members: Aah!

Mr Mwila: You attacked Dandy Crazy.

Mr Speaker: Order, both on the left and right!

Mr Kalaba: They knifed Dandy Crazy.

The Vice-President and Minister of Development Planning: Mr Speaker, I have said before in the House that the disciplining of our party officials or cadres is the responsibility of all of us, as leaders. Let us not apportion blame on each other. We need to discipline the unruly elements within our political parties.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: Sir, the unruly elements are not only in the PF, but also in other parties.

Hon. Opposition Members: No!

Mr Kalaba: Beating musicians?

The Vice-President and Minister of Development Planning: Sir, we need to take heed of the reconciliation and forgiveness that was declared in the country recently.

I thank you, Sir.

Hon. Opposition Members: Question!

Mr Chilangwa (Kawambwa): Mr Speaker, can Her Honour the Vice-President and Minister of Development Planning give us the economic outlook for the future, especially for the first quarter of next year, ...

Hon. Government Members: Hear, hear!

Mr Chilangwa: ... bearing in mind that next month we approving this Budget that has elements that do not rely on the foreign exchange rate which means its value will remain intact as emoluments do not require us to buy dollars as they are paid as they come.

Hon. Opposition Members: Aah!

Mr Speaker: Your question, hon. Member?

Interruptions

Mr Speaker: Order!

Mr Chilangwa: Sir, bearing in mind that this Government is doing something about the power supply, especially that the Itezhi-tezhi ...

Interruptions

Mr Speaker: Order!

Hon. Member for Kawambwa, can you ask a specific question, otherwise I will move onto the next person.

Laughter

Mr Chilangwa: Mr Speaker, taking into account all the good things that the Government has done to ensure that the economy gets back on track, what is the outlook of the economy for the first quarter of next year?

Hon. Government Members: Hear, hear!

Interruptions

Mr Speaker: Order!

Hon. Government Members: It is a long question.

The Vice-President and Minister of Development Planning: Mr Speaker, Zambia has a big economy. It is only the Zambians who do not understand the extent to which we are blessed to have all the resources to help take the economy of this country to higher heights.

Sir, I was in London recently where I attended a conference of investors. This meeting was oversubscribed with 400 investors who wanted to have more information about investing in Zambia.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: Sir, why were the people doing that if they knew that the Zambian economy was dead?

Mr Speaker, that conference indicated that there was still a lot of goodwill in the world regarding this economy. The Government is not sitting idly. The Government is addressing the economic issues that have arisen of late.

Mr Kalaba: A German Minister is coming.

The Vice-President and Minister of Development Planning: Sir, our co-operating partners are working with us to address some of the economic issues. We have been receiving delegations in the country of late, composed of investors who want to bring their money into Zambia and partner with the Government and the private sector to develop the various sectors of the economy for the betterment of our people.

Sir, the German Foreign Affairs Minister is arriving today to engage the Government on certain economic issues that the German community ...

Mr Muntanga: What is the outlook?

The Vice-President and Minister of Development Planning: The outlook is the bright.

Hon. Government Members: Hear, hear!

Mr Mwila: The kwacha has picked up.

The Vice-President and Minister of Development Planning: Sir, the outlook is bright.

Mr Livune: Question!

The Vice-President and Minister of Development Planning: It is only the believers in doomsday who do not see the light on the horizon. Zambia is on the move.

I thank you, Sir.

__________

QUESTIONS FOR ORAL ANSWER

UPGRADING OF THE SAMFYA/KAPATA ROAD

180.    Mr Kasandwe (Bangweulu) asked the Minister of Works and Supply:

(a)    whether the Government had any plans to upgrade the Samfya/Kapata Road to bituminous standard;

(b)    if so, when the plans would be implemented; and

(c)    if there were no such plans, why.

The Deputy Minister of Works and Supply (Dr Mwali): Mr Speaker, there are no immediate plans to upgrade the Samfya/Kapata Road. However, the road may be considered for future upgrading if prioritised by the local authority.

Mr Speaker, the plans in part (a) of the question will only be implemented once the road is prioritised by the local authority.

Sir, the works on the road have never been prioritised.

I thank you, Mr Speaker.

Mr Kasandwe: Mr Speaker, the road in question is very important to the people of Bangweulu. In fact, I would like to thank the Government for grading the road a few weeks ago. Is it possible for the Government to work on this road in phases in view of limited funds?

Dr Mwali: Mr Speaker, I agree with my colleague that this is a very important road. I used this road in 1964 when we went there for Independence Celebrations.

Hon. Government Members: Hear, hear!

Dr Mwali: Sir, we still await the prioritisation of this road by the local authorities.

I thank you, Sir.

CONSTRUCTION OF KASHILA SCHOOL IN CHEMBE

181. Mr Mbulakulima (Chembe) asked the Minister of General Education:

(a)    why the money meant for the construction of Kashila School was diverted to Kafwanka School in Chembe Parliamentary Constituency;

(b)    who authorised the diversion; and

(c)    when the money for the construction of Kashila School would be released.

The Deputy Minister of General Education (Mr Mabumba): Mr Speaker, I wish to inform the House that the money meant for Kashila School was diverted to Kafwanka School in 2013 because access to Kashila was not possible as bridges were washed away by rains and, up to now, the area is still not accessible.

Sir, there was a stakeholders’ meeting in Milenge District involving the District Education Board Secretary, District Commissioner as well as the District Development Co-ordinating Committee members, who directed the Provincial Officer (PO) to divert the funds based on the answer which I have given.

Mr Speaker, the money was varied. We hope that the PO will provide funds in the annual work plan for the construction of Kashila School in 2016.

I thank you, Sir.

Mr Mbulakulima: Mr Speaker, there has been no school in Kashila for a long time. The money which was provided to construct Kashila School was diverted. Can the hon. Minister assure me that his ministry is on top on things and that the money will be reimbursed so that the people of Kashila can have access to education? The variation of money can only be done by the Secretary to the Treasury. We now seem to be getting the impression that the local authorities have the power to do that. What measures is the hon. Minister putting in place to ensure that the people of Kashila get what belongs to them since the Government had already authorised the use of that money?

Mr Mabumba: Mr Speaker, although he raised two different issues, they are both linked to the provision of funds to upgrade Kashila School. I said that since our budget has been approved, we will consider that in the next annual work plan.

I thank you, Sir.

Mr Pande (Kasempa): Mr Speaker, the hon. Minister stated that the main reason the money was diverted was that the bridges were washed away and up to now the area is still not accessible. Is the hon. Minister not considering liaising with the Office of the Vice-President so that bridges can be put up in the area and Kashila School can be constructed?

Mr Mabumba: Mr Speaker, I raised that issue with the provincial leadership at PO level and asked them to engage the Disaster Management Mitigation Unit (DMMU) so that the area can be made accessible. Since the area is not accessible, even if we were to allocate funds to that school in 2016, they would still be diverted.

I thank you, Sir.

____________

BILLS

SECOND READING

THE PROPERTY TRANSFER TAX (Amendment) BILL, 2015

The Minister of Finance (Mr Chikwanda): Mr Speaker, I beg to move that the Bill be now read a second time.

Sir, the Bill before the House is principally seeking to amend the Property Transfer Tax Act so as to revise the rates of tax applicable on the transfer of property. The Bill further provides for matters connected with, or incidental to, the revision of the rates of tax applicable on the transfer of property which is land and shares in this case.

Mr Speaker, this Bill is straightforward and I accordingly commend it to the House.

Mr Speaker, I beg to move.

Mr Hamududu (Bweengwa): Mr Speaker, I thank you for the opportunity to present the views of your Committee on Estimates on the Property Transfer Tax (Amendment) Bill,  2015, which was referred to it by this august House on Thursday, 5th November, 2015.

Sir, let me mention that your Committee undertook an in-depth study of the Bill. I wish to refer the House to pages 2 and 3 of your Committee’s report for the objects as well as the salient features of the Bill.

Mr Speaker, the stakeholders who appeared before your Committee noted the reduction of property transfer tax on land and shares from 10 per cent to 5 per cent. They submitted that the measure will spur positive growth in the property market and increase activity from Zambians in the property and capital markets.

Sir, the stakeholders argued that the higher property tax rate of 10 per cent was prohibitive and discouraged people from completing property transfer transactions. They thus submitted that the proposed measure will increase the revenue collected by the Government.

Mr Speaker, one practical example which was given was that in 2013 when the rate was at 5 per cent, the Government managed to collect K172.2 million, but in 2014 when the rate was increased to 10 per cent, the collections reduced to K159.1 million.

Sir, your Committee supports the reduction of the rate of tax applicable on the transfer of property and is of the view that this will encourage investment in land, buildings, capital markets and other related sub-sectors such as real estate. Your Committee, however, observes that the measure may not spur investment in land transfers to desired levels because most of the land is not on title. Your Committee is of the view that the only way transactions can be captured will be to implement a deliberate policy to directly capture most of the land information on the land information system and issue title deeds. Your Committee strongly recommends that the Government hastens the formalisation of land ownership by issuing ownership documents to individuals. Your Committee further urges the Government to look into the possibilities of creating  a semi-autonomous land agency to handle all land matters efficiently.

Mr Speaker, in conclusion, your Committee wishes to thank all the stakeholders who appeared before it and tendered both oral and written submissions.

Sir, gratitude goes to you, for affording your Committee the opportunity to study the Bill.

Mr Speaker, your Committee also appreciates the services rendered by the Clerk of the National Assembly and her staff during its deliberations.

Mr Speaker, I thank you.

Mr Chikwanda: Mr Speaker, I wish to thank the Committee on Estimates and all the hon. Members for supporting the Bill.

Sir, I also wish to take note of the observations made by your Committee as well as the submissions by other stakeholders. May I take this opportunity to respond to the Committee’s observations and recommendations.

Mr Speaker, a concern was raise that the proposed downward revision of the rates of tax applicable on transfer of property may not spur investment in land transfer.

Sir, I wish to inform the House that the Government intends to conduct a comprehensive national land audit soon in order to ascertain the statistics on the quantities and categories of land. This will contribute to the hastening of the formalisation of land ownership by the issuance of land title deeds immediately the land is allocated. Further, the Ministry of Land, Natural Resources and Environmental Protection has developed and rolled out the Zambia Integrity Management Information System (ZIMIS) to all provinces except the newly recreated Muchinga Province. This will improve efficiency in the land allocation process and revenue collection.

 Sir, I wish to assure the House that the Government will accelerate the implementation of both the national land audit and the National Land Titling Programme so as to ensure improved certainty of land location and ownership, guarantee ownership and security of tenure which will enable property owners to access loans using their properties and collateral as well as improved revenue collection for the Treasury.

Mr Speaker, the Bill is straightforward and I commend it to the House.

 Sir, I beg to move.

Question put and agreed to and the Bill read a second time.

 Committed to the Committee of the Whole House.

Committee on Tuesday, 24th November, 2015.  

THE VALUE ADDED TAX (Amendment) BILL, 2015

Mr Chikwanda: Mr Speaker, I beg to move that the Bill now be read a second time.

Mr Speaker, the Bill before this House is principally seeking to amend the Value Added Tax Act so as:

(a)     to prohibit companies dealing only in exempt supplies from being eligible to be treated as part of a recognised group of companies;

(b)    to provide for the confidentiality of taxpayers’ information;

(c)    to provide for the use of fiscal cash register or other equipment in recording daily sales; and

(d)    to provide for matters connected with, or incidental, to the foregoing.

Sir, this Bill is straightforward and I accordingly recommend it to this House.

Mr Speaker, I beg to move.

Mr Hamududu: Mr Speaker, your Committee considered the Value Added Tax (Amendment) Bill, 2015.

Sir, your Committee on Estimates was tasked by this august House to scrutinise the Bill in detail and I wish to mention that the report before this House contains the observations and recommendations of your Committee. Various stakeholders were invited to appear before your Committee to make written and oral submissions on the proposed Bill.

Mr Speaker, he Value Added Tax (Amendment) Bill, 2015 seeks to amend the Value Added Tax Act, Cap. 322 of the Laws of Zambia in order to reduce leakages and protect taxpayer information. Specifically, the amendment provides for among other things, the introduction of fiscal cash registers for recording business transactions.

Mr Speaker, the aim of the introduction of these registers is to enable the Zambia Revenue Authority (ZRA) to monitor transactions as they occur and thereby reduce revenue leakages as well as provide for the confidentiality of taxpayers’ information.

Mr Speaker, your Committee and the stakeholders who appeared before it were in support of the Bill and commends the Government for bringing it to the House. However, in supporting the Bill, most stakeholders expressed concern with regard to the introduction of fiscal cash registers. They submitted that although the use of fiscal cash registers would enhance compliance and also optimise value added tax revenue collection, they felt that the implementation would face a lot of challenges.

Sir, one area of concern was that the registers would require high speed internet connectivity and consistent power supply. They were of the view that given the current slow internet connectivity and inconsistent power supply, the measure would face serious challenges. Other stakeholders expressed concern about the removal of Value Added Tax on non-life insurance products and replacing it with a levy of 3 per cent on premiums. The stakeholders contended that although the measure was meant to help solve the administrative and compliance challenges that were faced on hybrid insurance products, the 3 per cent levy was more like a turnover tax.

Mr Speaker, after examining the stakeholders’ submissions and also its own scrutiny of the Bill, your Committee observes that the introduction of fiscal cash registers will require vey reliable internet connectivity and consistent power supply. Your Committee, therefore, strongly recommends that the Government should ensure that necessary infrastructure to support high speed and reliable internet connectivity is put in place expeditiously before the full operationalisation of this new system.

Sir, while your Committee appreciates that the number of measures have been put in place to cushion the impact of power deficits, it recommends that a long-term strategic plan be put in place to attract more investment in the energy sector to guarantee uninterruptible power supply.

Mr Speaker, lastly, subject to the above, your Committee urges this august House to pass the Bill.

Sir, on behalf of your Committee, I wish to thank you, Sir, and the Clerk of the National Assembly for the guidance and administrative support which was rendered when considering the Bill. I further thank all the stakeholders who submitted on the Bill.

 Mr Speaker, I thank you.   

Mr Chikwanda: Mr Speaker, I wish to thank the Committee on Estimates and the hon. Members for supporting the Bill. I also wish to take note of the observations made by the Committee.

Mr Speaker, the deployment of enhanced information and communications technology (ICT) solutions through the use of electronic devices such as fiscal cash registers is intended to improve the performance of Value Added Tax (VAT). This is by ensuring that the Zambia Revenue Authority (ZRA) monitors, directly, transactions on which VAT is collected by registered business as the transactions occur and thereby improve compliance and reduce revenue leakages.

Sir, indeed, I agree that the necessary ICT infrastructure with adequate bandwidth needs to be put in place to minimise downturn times and ensure the successful use of fiscal cash registers. The reliable electric power supply and interventions that are being put in place to arrest power deficits will be significant to the implementation of this programme.

Mr Speaker, we are also cognisant of the fact that as with any other technological improvement, the implementation of fiscal devices alone cannot achieve meaningful results. It has to be complemented with comprehensive compliance improvement strategies that are clearly risk-based for the different segments of taxpayers.

Sir, this Bill is straight forward, and I accordingly commend it to this House.

Mr Speaker, I beg to move.

Question put and agreed to and the Bill read a second time.

Committed to a committee of the Whole House.

Committee on Tuesday, 24th November, 2015.

THE CUSTOMS AND EXCISE (Amendment) BILL, 2015

Mr Chikwanda: Mr Speaker, the Bill before this House is essentially seeking to amend the Customs and Excise Act so as to:

(a)    remove customs duty on green houses and rose seedlings;

(b)    revise the customs duty rates applicable to the importation of motor vehicles and impose a surtax on the importation of vehicles older than five years;

(c)    increase specific excise duty rates on tobacco products;

(d)    provide for the keeping of transactional records for a minimum period of six years; and

(e)    provide for matters connected with, or incidental to, the foregoing.

Sir, the Bill is straightforward and I, therefore, commend it to this House.

Mr Speaker, I beg to move.

Mr Hamududu: Mr Speaker, I thank you for the opportunity to present the views of your Committee and those of the stakeholders on the Customs and Excise Amendment Bill, 2015.

Sir, your Committee undertook an in-depth study of the Bill, which was referred to it on 5th November, 2015. Your Committee was informed that the object of the Bill is to amend the Customs and Excise Act so as to:

(a)    remove customs duty on green houses and rose seedlings;

(b)    revise the customs duty rates applicable to the importation of motor vehicles and impose a surtax on the importation of vehicles older than five years;

(c)    increase specific excise duty rates on tobacco products;

(d)    provide for the keeping of transactional records for a minimum period of six years; and

(e)    provide for matters connected with, or incidental to the foregoing.

  Sir, a number of stakeholders, who appeared before your Committee, supported most of the amendments. One of the amendments which I can single out is the removal of excise duty on greenhouses and rose seedlings. Stakeholders had a strong view that the move would help revive the horticulture sector as well as facilitate the diversification of the economy and promote non-traditional exports.

Mr Speaker, some stakeholders also noted that the proposal to introduce an export duty on unprocessed wood at 40 per cent and that of semi-processed wood at 20 per cent and the increase of customs duty on wood and wood products from 25 per cent to 40 per cent was progressive. In addition, the proposed change is likely to promote local manufacturing and value addition in wood.

Sir, in supporting the Bill, your Committee observes that the revision of customs duty rates applicable to the importation of motor vehicles and imposition of surcharge on the importation of vehicles older than five years may have an adverse effect on Government revenue.

Mr Speaker, your Committee further notes that the revision of the rates may increase the cost of importation of vehicles thereby reducing the volume of motor vehicles imported into the country. Your Committee, therefore, recommends that the surcharge and revised customs rate should be implemented only if incentives are introduced on the procurement of newer vehicles.

Sir, in conclusion, your Committee pays tribute to all the stakeholders who appeared before it and tendered both oral and written submissions. Gratitude goes to you, Mr Speaker, for affording your Committee an opportunity to study the Bill. Your Committee also appreciates the services rendered by the Clerk of the National Assembly and her staff during its deliberations.

I thank you, Sir.

Mr Chikwanda: Mr Speaker, I thank the Committee on Estimates and the hon. Members for supporting the Bill. I have taken note of your Committee’s observation that the imposition of surcharge on the importation of vehicles older than five years may mostly affect poor people in lower income brackets.

Mr Speaker, it is for this reason that the surcharge is being proposed at a minimal amount of K2,000 only. Regarding the proposal to implement the proposed revised customs duty rates and the surcharge only if incentives are introduced on the procurement of new vehicles, it should be noted that most of our citizens may still not be able to afford to purchase new motor vehicles even with incentives, given the low per capita income in our country. Therefore, direct incentives for the purchase of new motor vehicles may be redundant in view of the fact that this will only benefit those who can afford and not those in lower income brackets. The Bill is straightforward and I commend it to the House.

Sir, I beg to move.

Question put and agreed to and the Bill read a second time.

Committed to a committee of the Whole House.

Committee on Tuesday, 24th November, 2015.

THE INCOME TAX (Amendment) BILL, 2015

Mr Chikwanda: Mr Speaker, I beg to move that the Bill be now read a second time.

Mr Speaker, the Bill before this House is principally seeking to amend the Income Tax Act so as to:

(a)    extend the application of the ten-year period for carrying forward of losses to businesses applicable to businesses carrying on electricity generation;

(b)    extend the withholding tax on management and consultancy fees to resident consultants;

(c)    clarify the tax treatment of winnings from gaming, lotteries and betting when such winnings are by virtue of employment or office held;

(d)     remove the withholding tax applicable on the discount income of Government bonds;

(e)    increase the capital allowance rate from twenty-five per cent to fifty per cent for businesses carrying on electricity generation;

(f)    clarify that only companies who, shares are listed on the Lusaka Stock Exchange qualify for a reduced corporate tax; and

(g)    provide for matters connected with, or incidental to, the foregoing.

Mr Speaker, other proposed changes to the Income Tax Act are simply meant to align the Act to relevant provisions in other Acts and also strengthen the law for better and effective tax administration.

Sir, this Bill is straightforward and I accordingly commend it to the House.

Mr Speaker, I beg to move.

Mr Hamududu: Mr Speaker, in accordance with its terms of reference, as provided for in the Standing Orders, your Committee was tasked to scrutinise the Income Tax (Amendment) Bill, 2015.

Mr Speaker, in examining the Bill’s content, several stakeholders, including the Ministry of Justice, Zambia Revenue Authority (ZRA), Civil Society for Poverty Reduction (CSPR), Zambia Institute of Chartered Accountants (ZICA), Zambia Association of Chambers of Commerce and Industry (ZACCI), Bankers Association of Zambia (BAZ), Real Estate Investment of Zambia (REIZ) Plc, National Economic Advisory Council (NEAC) and Ministry of Finance were invited to comment on the Bill.

Sir, most of the stakeholders welcomed the decision to zero-rate all power generating appliances from paying tax and to allow the investors in the energy sector to carry forward tax losses for ten years and increase the capital allowance rate from 25 per cent to 50 per cent for businesses carrying on electricity generation. The decision to provide these incentives was widely supported. Stakeholders, however, expressed concern that although it was understandable that the Government is trying to cushion the existing power deficit, the ten-year period for carrying forward the tax losses was rather too long. Stakeholders were of the view that there was a need to shorten this period. In encouraging the move, they suggested that the process of investing in the energy sector should be simplified in order to promote private investors to put up power plants.

Sir, your Committee supports the extension of the period for carrying forward losses for businesses engaged in the generation of electricity and the increase in capital allowance rate to 50 per cent from 25 per cent on implements, machinery and plants. It, however, recommends that more should be done to attract investment in the power sector to reduce the power deficit such as the charging of cost-reflective tariffs. Your Committee also recommends the streamlining of the requirements to invest in the energy sector in order to attract more investors.

Sir, in conclusion, your Committee wishes to express its gratitude to you, for granting it the opportunity to scrutinise the Income Tax (Amendment) Bill, 2015. Your Committee also wishes to thank the office of the Clerk of the National Assembly and her staff for the support rendered to it throughout its deliberations. It is also indebted to all the stakeholders who appeared before it for their co-operation in providing the necessary information.

Mr Speaker, I thank you.

Mr Chikwanda: Mr Speaker, I wish to, once again, thank the Committee on Estimates and hon. Members for supporting the Bill. I also wish to take note of the pertinent observations made by the Committee. Your Committee recommended that more should be done to attract investment in the electricity power sector.

Sir, I wish to inform the House that apart from the incentives that have been proposed under the Bill, with regard to accelerated capital allowances and the extended period of carrying forward of losses, building and installation of power stations is a priority sector under the Zambia Development Agency Act. This means that all qualifying investors in the sector are entitled to duty free importation of their capital equipment and machinery for a period of five years as well as an income tax holiday of five years from the start of operations. We believe that coupled with the charging of cost-reflective tariffs, these incentives are necessary to spur investment in the power sector.

Mr Speaker, this Bill is straightforward and I, therefore, commend it to the House.

Mr Speaker, I thank you.

Question put and agreed to and the Bill read a second time.

Committed to a committee of the Whole House.

Committee on Tuesday, 24th November, 2015.

THE LANDS (Amendment) BILL, 2015

Mr Chikwanda: Mr Speaker, I beg to move that the Bill be now read a second time.

Mr Speaker, the Bill before this House is principally seeking to amend the Lands Act so as to implement the financial measures for the 2016 Budget in respect of transactions on land. Specifically, the Bill seeks to:

(a)    revise the circumstances under which consideration is payable in respect of the alienation of land;

(b)    revise the percentage of consideration to be paid into the Land Development Fund; and

(c)    provide for matters connected with, or incidental to, the foregoing.

Sir, the Bill is straightforward and I, therefore, commend it to this House.

Mr Speaker, I beg to move.

Mr Pande (Kasempa): Mr Speaker, in accordance with its terms of reference, as provided in the Standing Orders, your Committee was tasked to scrutinise the Lands (Amendment) Bill, 2015.

Sir, in order to appreciate the ramifications of the Bill, your Committee received both oral and written submissions from various stakeholders.

Mr Speaker, let me state from the outset that your Committee is in full support of the Bill. As hon. Members are aware, this amendment is being made as a response to the measures that the Government announced in the 2016 National Budget. Your Committee was informed that the measures have been motivated by the fact that putting more customary land on title and raising the consideration paid for land alienation to the market value could help the Government raise more revenue. Your Committee has also been informed of the need to revise the proportions of consideration fees committed to the Land Development Fund to allow for more resources to go towards other development programmes.

Mr Speaker, the Bill has two objectives that are distinct in nature and received different reactions from stakeholders. I will address them one after another. The first objective concerns the proposal to revise consideration payable in respect of the alienation of land. Your Committee is glad to report that all the witnesses that appeared before it supported this measure and your Committee is accordingly in support of this measure because of the anticipated increase in revenue as a result of the increase in fees for transactions on land.

Mr Speaker, there was, however, one concern expressed by some stakeholders. This was in regard to the amendment proposed under Clause 3 which means that only the Government will be exempt from paying consideration. In the view of the stakeholders and that of your Committee, that if this is not addressed, it may disadvantage other groupings such as persons that may have stayed on a particular piece of land for a long time and wish to get title.

Sir, in addition, the provision does not also take into account the fact that some persons and entities might wish to get land for a cause that could contribute to the general welfare of the community. Your Committee, therefore, is recommending that a proviso be made in the clause so that special circumstances be considered for alienation of land without paying consideration.

Mr Speaker, the second objective is on the proposed revision of the percentage of consideration to be paid into the Land Development Fund from 75 per cent to 25 per cent. Your Committee wishes to report that some stakeholders, mostly those associated with the local government system, were opposed to this proposal. They were of the view that reducing the percentage of consideration to be paid into the Land Development Fund from the current 75 per cent to 25 per cent will negatively affect service delivery in local authorities.

Sir, your Committee interrogated this matter with the Permanent Secretary from the Ministry of Finance who assured it that although the percentage is being reduced from 75 per cent to 25 per cent, the actual revenue going to the local authorities will not reduce because of the expected significant increase in revenue as a result of collecting consideration at market value. The Ministry of Finance also indicated that revenues were generally expected to increase as a result of the expected increase in the volume of transactions arising from this amendment.

Sir, in light of this explanation, your Committee is in full support of the measure as it will increase the funds available to the Consolidated Fund while leaving enough funds in the Land Development Fund for use by local authorities for land development.

Mr Speaker, I wish on behalf of your Committee to express our gratitude to you for granting us the opportunity to scrutinise the Lands (Amendment) Bill, 2015. Your Committee also wishes to thank the Office of the Clerk of the National Assembly for the support rendered to it throughout its deliberations. It is indebted to all the witnesses who appeared before it for their co-operation in providing the necessary briefs.

Mr Speaker, I thank you.

Mr Chikwanda: Mr Speaker, I wish to sincerely thank the Committee on Economic Affairs, Energy and Labour and also the hon. Members for supporting the Bill.

Sir, we will bring to the House the necessary amendment to the Bill with regard to paragraph H of sub-section 3 of the Lands Act. This follows the ministry responsible for lands’ submission to your Committee that paragraph H should not be deleted.

Sir, this Bill is quite straightforward and I commend it to the House.

Mr Speaker, I beg to move.

Question put and agreed to and the Bill read a second time.

Committee on Tuesday 24th November, 2015.

THE INSURANCE PREMIUM LEVY BILL, 2015

Mr Chikwanda: Mr Speaker, I beg to move that the Bill be read a second time.

Mr Speaker, the object of the Bill before this House is to provide the imposition, payment and collection of an insurance premium levy and provide for matters connected with, or incidental, to the foregoing.

The Bill is straightforward and I commend it to the House.

Mr Speaker, I beg to move.

Mr Pande: Mr Speaker, your Committee was tasked to scrutinise the Insurance Premium Bill, 2015.

Sir, in seeking to understand the ramifications of the Bill, your Committee sought oral and written submissions from various stakeholders including the representatives of the insurance companies and insurance brokers.

Mr Speaker, let me start by informing the House that your Committee fully supports the Bill. Your Committee also wishes to report that the Bill received the support of all the stakeholders who made written and orals submissions. Your Committee notes that the Bill was supported mainly because it is a measure being taken by the Government in order to simplify taxation in the insurance sector. As the House may be aware, taxation of the insurance sector using Value Added Tax has created a lot of challenges which resulted in various administrative arrangements being put in place to try to ease the accounting process. It is, therefore, the hope of your Committee that this measure will improve compliance on the accounting of tax on insurance and increase the revenue on the treasury.

Sir, although the Bill is generally welcome, your Committee makes two specific observations and recommendations.

Mr Speaker, your Committee is concerned that the Bill has not stated clearly who will be responsible for remitting the levy to the Zambia Revenue Authority (ZRA), which if left unattended to, will create confusion in the administration of the levy. Your Committee, therefore, recommends that Clause 5 of the Bill be amended to provide clearly that the levy shall be remitted by the party that comes into first contact with the premium to the ZRA.

Sir, your Committee is concerned that the name of the Bill, ‘Insurance Premium Levy’ may result in confusion, since an insurance premium levy …

Mr Speaker: Order, on the right.

Mr Pande: … payable by insurance companies to the Pension and Insurance Authority under Section 29 of the Pension Scheme Regulation Act already exists. Your Committee, therefore, proposes that the levy be called the ‘The Insurance Premium Tax’ and consequently, the Bill be called the ‘Insurance Premium Tax Bill’.

In conclusion, your Committee wishes to express its gratitude to you, Mr Speaker, for granting it the opportunity to scrutinise the Insurance Premium Levy Bill, 2015. Your Committee also wishes to thank the Office of the Clerk of the National Assembly for the support rendered to it throughout its deliberations. Further, your Committee is indebted to all the witnesses who appeared before it for their co-operation in providing the necessary briefs.

Mr Speaker, I thank you.

Mr Chikwanda: Mr Speaker, I wish to sincerely thank the Committee on Economic Affairs, Energy and Labour. I wish also to thank the hon. Members for supporting the Bill. I thank all the stakeholders for their contributions on this matter.

Sir, the Bill is meant to ease compliance as regards accounting for tax in the insurance industry. This is in view of some administrative challenges which have arisen due to the imposition of Value Added Tax (VAT) on non-life insurance.

Mr Speaker, I am pleased to inform this august House that in coming up with this proposed Bill, the Government consulted widely with stakeholders such as the Insurance Association of Zambia (IAZ) and particularly, the insurance brokers, who have faced difficulties in respect of accounting for VAT on non-life insurance premiums in a timely manner. Given that the Bill is premised on the submissions of the stakeholders in the insurance industry, we are confident that it will adequately address the current challenges.

Mr Speaker, your Committee raised the concern that the Bill was not clear on who should account for the levy. I wish to assure the House that the Bill is unambiguous because of the fact that the levy will be due at the time an insurance premium is paid to the insurer or an insurance broker who then must remit it to the Zambia Revenue Authority (ZRA). Further, since the insurer or insurance broker will account for the levy under the Insurance Premium Levy Act, we do not foresee that this will be in conflict with any other law.

Sir, the Bill is straight forward and I, accordingly, commend to this House.

Mr Speaker, I beg to move.

Question put and agreed to and the Bill read a second time.

Committed to a committee of the Whole House.

Committee on Tuesday, 24th November, 2015.

____________

COMMITTEE OF SUPPLY

[THE CHAIRPERSON OF COMMITTEES in the
Chair]

The Chairperson: Order!

Business was suspended from 1045 hours until 1100 hours.

[THE CHAIRPERSON OF COMMITTEES in the
Chair]

VOTE 45 – (The Ministry of Community Development and Social Welfare – K429,556,448).

The Minister of Community Development and Social Welfare (Ms Kabanshi): Mr Chairperson, firstly, I would like to thank you for according me this opportunity to discuss the 2016 Estimates of Expenditure for my ministry, which is the Ministry of Community Development and Social Welfare, under Vote 45.

Sir, during the Official Opening of the Fifth Session of the Eleventh National Assembly on 18th September, 2015, His Excellency the President of the Republic of Zambia, Mr Edgar Chagwa Lungu, announced the realignment of the primary health care function from the Ministry of Community Development, Mother and Child Health to the Ministry of Health, thereby, reverting my ministry to the Ministry of Community Development and Social Welfare.

Mr Chairperson, I wish to assure the people of Zambia that the Ministry of Community Development and Social Welfare shall remain steadfast in executing its mandate in line with its various portfolios that include the following:

(a)    provision of adoption services;

(b)    Community Development Policy;

(c)    community development training;

(d)    Disability Affairs Policy;

(e)    juvenile correction services; and

(f)    non-formal education and skills training.

Sir, furthermore, I wish to stress that my ministry shall continue to execute its mandate in other functions such as Non-governmental Organisations Policy, probational services, persons with disabilities, Social Welfare Policy, support to self-help initiatives, as well as welfare services and counselling organisations.

Mr Chairperson, allow me to inform the nation, through this House, that my ministry’s allocation in 2016 stands at K429,556,448 compared to the 2015 budget allocation of K2,028,157,674, representing an upward increase in the ministry’s allocation of 23 per cent. It is, therefore, gratifying to note that the ministry’s budget allocation for 2016 has received this increase to facilitate the smooth implementation of social protection programmes during the 2016 budget, and for that, I commend the hon. Minister of Finance, Mr Alexander Chikwanda.

Hon. Government Members: Hear, hear!

Ms Kabanshi: Sir, the Ministry of Community Development and Social Welfare will continue to play an instrumental role of providing and facilitating social protection to the poor and vulnerable groups in Zambia. Through the realignment of ministries, the ministry is now well-repositioned to promote adequate social protection, and is determined to ensure that provision of social welfare and community development, as well as empowerment and rehabilitation of persons with disabilities, survivors of gender-based violence (GBV), and human trafficking is delivered to the most disadvantaged people of our country. At this juncture, allow me to highlight some of the key programmes under my ministry.

Social Cash Transfer Scheme

Mr Chairperson, the Social Cash Transfer Scheme aims at providing social assistance in the form of cash to people who are extremely poor, incapacitated, and who cannot benefit from the employment opportunities in the labour market. The beneficiaries of this scheme require regular and continuous assistance to survive. Hence, this scheme is contributing significantly to breaking the yoke of inter-generational poverty among vulnerable people. In 2015, the Government and its co-operating partners has been implementing the Social Cash Transfer Scheme in fifty districts. It supports 145,000 beneficiary households. In order to strengthen the implementation of the programme, various activities ranging from capacity building, through training of officers, to sensitisation of various stakeholders such as the hon. Members of Parliament, community members, traditional leaders, as well as  beneficiaries of the programme, have been conducted by the ministry in conjunction with its co-operating partners. Furthermore, capital equipment which includes motor vehicles, motorbikes, bicycles, as well as information technology equipment have been procured and distributed in an effort to enhance service delivery and monitoring in the districts.

Sir, in 2016, a total of K302 million has been allocated to this programme, with the Government providing K250 million, while the co-operating partners are providing K52 million. This increased allocation has enabled the ministry to bring on board twenty-seven new districts to the scheme, and the total number of beneficiaries has now come to 250,000 households. It is expected that with this scale-up, coverage will be rationalised and consequently, the impact of this programme maximised. The 2016 budget allocation for the scheme will also focus ensuring that there is consolidation of the electronic payment system for transfers in order to address possible fiduciary risks. In addition, my ministry plans to roll out the management information system to all the twenty-seven new districts to ensure the provision of real time information to enhance decision-making. As you may know, this intervention clearly signifies my Government’s determination to uplift the lives of the underprivileged members of our society and hence, significantly contributes to narrowing the gap between the rich and the poor.

The Public Welfare Assistance Scheme

Sir, this programme is meant to provide assistance through the provision of funds towards the education and skills requirements for orphans and vulnerable children as direct welfare support across 105 districts in the country. To this end, the programme has been allocated K6 million in the 2016 budget, as compared to K5 million in 2015, to enable the ministry to continue providing the education needs of vulnerable children. Currently, 50,000 children are beneficiaries of this programme, and the same number of beneficiaries will be maintained in 2016.

Support to Persons Living with Disability

Mr Chairperson, as I said in my preamble, the Ministry of Community Development and Social Welfare has a mandate to provide support to underprivileged people of our country, who include people living with disabilities. In this vein, one of the vehicles my ministry uses to support underprivileged people is the provision of operational grants to institutions, to mitigate the challenges that people with disabilities face by providing lifelong skills training in fields such as tailoring, entrepreneurship and provision of micro credit. To this effect, a total of K26,320,000 has been allocated to various institutions to assist them build capacity so that they can offer effective service delivery to people living with disabilities and other disadvantaged persons. Notable among these institutions is the Zambia Agency for Persons with Disabilities (ZAPD), National Vocational Rehabilitation Centre (NVRC), National Trust Fund for the Disabled,  Zambia National Library and Cultural Centre for the Blind, and the Matero After Care Centre, to mention but a few.  

The Food Security Pack

Sir, the overall objective of the Food Security Pack programme is to eradicate hunger and provide household food security among vulnerable households in the country. This programme is aimed at empowering vulnerable, but viable small-scale farmers with farming inputs with a view of nurturing the beneficiaries and consequently weaning them off from the programme in order to stimulate food security among vulnerable people. In 2015, the programme targeted to provide support to 30,100 households under rain-fed farming, and 5,000 households have been earmarked for support in the form of alternative livelihood interventions, which include provision of animals for rearing and fish farming. Under the 2016 budget estimates for ministry, emphasis will be extended to adopting and strengthening innovations to enable the efficient delivery of inputs to beneficiaries. In addition, my ministry will continue to implement the Food Security Pack Programme in all the districts. To this effect, K20 million has been allocated to this programme in the 2016 Budget.

    Economic Development of Women Programme

Mr Chairperson, this programme will continue to empower women by providing grants and micro-credit loans to women clubs and associations to support them venture into income generating activities. Currently, the programme is supporting 700 women clubs with grants, and 5,333 women, in fifty-two districts, with micro-credit. In 2016, the ministry intends to strengthen the decentralised system that was introduced in 2015 in which districts have been awarded with grants and micro-credits. In 2016, the Government has allocated K16,402,500 and 15,000 beneficiaries have been targeted for this programme.

  Sir, lastly, but not the least, allow me to inform hon. Members of Parliament that my ministry has made headway in ensuring that the administration of the Non-Governmental Organisations Act, 2009 is in line with various pieces of legislation and that stakeholders buy into this piece of legislation. To this effect, my ministry and the Ministry of Justice, in conjunction with various stakeholders, have continued to hold various consultations on the development of a roadmap to review the Non-Governmental Organisations Act No. 16 of 2009 in order to harmonise it with various instruments such as the Patriotic Front (PF) Party Manifesto and other pieces of legislation, to ensure compatibility and to improve the regulation and registration of the activities of non-governmental organisations (NGOs) in Zambia.

Sir, I am, therefore, glad to inform this House that so far, the on-going consultations, have been bearing fruit and a mutually agreed upon roadmap on reviewing the Non-Governmental Organisations Act, has since been reached, by all the stakeholders.  In this regard, I wish to inform hon. Members, and indeed, the country at large that so far, the ministry has registered 503 NGOs, translating into 388 local NGOs and 115 international ones, since the commencement of the registration of NGOs in 2013. Consequently, in the 2016 Budget, a total of K4,396,009 has been allocated towards the administration of the Non-Governmental Organisations Act that includes its harmonisation with other instruments. With this submission, I wish to appeal to this House to support the 2016 budget estimates for my ministry.

Mr Chairperson, I thank you.

Hon. Government Members: Hear, hear!

Mr Muchima (Ikeleng’i): Mr Chairperson, this Vote has my support. However, in supporting it, I want the hon. Minister to be very attentive to my submissions.

Mr Chairperson, this ministry is meant to care for the vulnerable, especially in rural areas. I have worked in the Northern Province before and I know the Northern and Luapula provinces including Chilubi Island very well. I also know, very well, the constituency where the hon. Minister comes from.

Mr Chairperson, the poverty levels in the North-Western and Western provinces are extremely high. It shocks me because the hon. Minister’s presence is very prominent when there are by-elections in most areas. The hon. Minister would be in an area distributing relief food and other things, using the money which is supposed to go to Chilubi Island, Ikeleng’i or Chama. We want the hon. Minister to be on the ground and not to be trotting with Her Honour the Vice-President and Minister of Development Planning to places where by-elections are taking place. This culminates into mismanaging a decision which was well-intended for poor people. This trend should stop.

Mr Chairperson, this ministry is very critical. The poverty levels in Zambia, especially in rural areas, are high. Poverty, in Zambia, is not something that should be trivialised. We should be extremely concerned about it. Hon. Ministers, when appointed to these ministerial positions, should have a heart for the people. Politics bring us here to make decisions for the people. This is not what is happening. We have disabled people everywhere in this country, but look at the way the Zambia Agency for Persons with Disabilities (ZAPD) is operating.  

Mr Chairperson, in the United National Independence Party (UNIP) and the Movement for Multi-party Democracy (MMD) days, the Ministry of Community Development and Social Welfare had a lot of infrastructure. It had farms and so on and so forth, but we lack the capacity to re-organise now. There are farms in Luapula Province, Chifwema, which is very near here, Mushota and many other places, which are being poorly managed. This is one ministry which should be compassionate, as should we all, irrespective of where people come from.

Sir, if you look at children in villages, you cannot help, but shed tears. Where is the ministry? I am happy that there has been a re-alignment of ministries. There were distortions because the social aspect of this ministry had been completely removed. The Government should not make changes anyhow. Take time to study and understand the situation. We are supposed to get statistics from this ministry.

Sir, the Ministry of Community Development and Social Welfare was there even in the colonial era. Its officers were moving. Take a leaf from that and put more emphasis on it. During this time that we are here in Parliament, for instance, officers could be moving from one village to the next, collecting statistics and other data about who should receive aid. Today, however, politics have taken centre stage. You need to be a cadre to benefit more from Government programmes. God will not spare us if we take this route. There is a need to go back to our terms of reference, especially with this inflation rate that has doubled, from 7 to about 14 per cent. This means that even the poverty levels have accelerated.

Sir, we have a free society where people can produce as many children as possible. People in villages do not mind as long as a child is born. It is, however, the responsibility of the Government to take care of every citizen. It is the Ministry of Community Development and Social Welfare that should be lobbying the Ministry of Health or the Ministry of Works and Supply for clinics and bridges, respectively. The Ministry of Community Development and Social Welfare can co-ordinate with other ministries and give us statistics. Unfortunately, its officers are always here in town and whatever is happening is only in theories. This is a ministry which should have bicycles, motorbikes and land cruisers so as to easily reach out to every poor Zambian.

Mr Chairperson, we need the Government, through its Ministers and directors, to be visible in rural areas so that they can give us accurate statists for places like Chavuma, Mutanda and Kazungula. We came up with the Social Cash Transfer Programme for a reason. We should not just aim at increasing it for political expedience because 2016 is an election year. Since the pilot has indicated that it is a good programme, we should have rolled it out to every district in Zambia by now instead of only increasing the amounts for the current ones. First of all, this low amount of money should have first been taken everywhere so that its effects are felt by more people. Why should we increase the amounts of money received by a few people while others benefit from it? The hon. Minister should look at this and act quickly.

Sir, the recommendations for bursaries come from this ministry and this area needs attention. We have boys and girls who have performed well, but have no means to access education. These boys and girls are not being considered. The hon. Minister’s Office should pick the names and bring them to the Ministry of Higher Education. I went to my constituency not long ago and found some boys who have been accepted to go to university, but cannot access a bursary. The hon. Minister’s Office does not seem to understand the process. These people we need to help now are the leaders of the future. A leader can come from anywhere.

Mr Chairperson, several communities need social amenities to be provided by the ministry in conjunction with the Ministry of Local Government and Housing. When you train a dog whilst it is still young, it will capture those mannerisms. Let us teach our children manners whilst they are still young, especially in the villages where there are no television sets. Today, when you take computers to the village, the people there experience challenges because of a lack of exposure. It is supposed to be the responsibility of the hon. Minister to go into the villages to monitor Government projects. The hon. Minister should not just be used to going to areas where by-elections have been created.

Sir, this country is poor because we have created unnecessary by-elections. The money that has gone to by-elections is the same money which is supposed to relieve the people from serious stresses.

Mr Mwaliteta: Question!

Mr Muchima: Mwaliteta, I am telling you that this country needs to be focused and address issues.

Laughter

Mr Muchima: Sir, we are being evil to ourselves. Let us spread our little resources in meaningful areas. We need a sharp leadership of tomorrow to be cultivated today. Let us have a unified  idea to take Zambia to the next level. We should not remain in the past as things change. Let us change with time.

Mr Chairperson, accessibility to certain places is almost impossible as bridges have been washed away. Information on such things is supposed to come from the hon. Minister. There is an area in one of the villages in my constituency which did not get a borehole because bridges had been washed away. Government officers cannot even go and get statistics there because the area is inaccessible. Some people are slipping off makeshift bridges and dying, yet there is a ministry which should be addressing these issues.

Sir, there are handicapped people everywhere whom we have paid very little attention to. The place where the hon. Minister comes from and the place that I come from are the same. I could enjoy working with her ministry because I have a heart for the people.

   Mr Chairperson, when the MMD was in power, it did not discriminated according to party membership in giving out hammer mills. However, today whatever is being distributed is only given to Patriotic Front (PF)-held areas.

Mr Ng’onga: Question!

Mr Muchima: Tell me what you have distributed in Ikeleng’i, Mwinilunga or the North-Western Province ever since the PF came into power? Nothing. I can challenge you to bring statistics. This is the fourth year. Nothing has been done. When I was in that ministry, we distributed things to everyone and I personally went everywhere.

Sir, we are against the Government using resources for campaigns because we need these resources for every poor Zambian. The education needs in Zambia are real. I know Senga Hill very well. I know places like Panonde, Kwakawimbe, Kwansokole and many other places. The poverty levels in those places are high. We need the hon. Minister in charge of social welfare to intervene.

Mr Chairperson, we have roofs blown off at schools. When you approach the Government for K74,000 to put iron sheets on the roofs of schools, we are told to wait for another Budget. Surely, how do you provide education when it is raining heavily in places where schools have no roofs? Pupils will not learn. I have been telling one of the hon. Ministers that I am going to talk to the hon. Minister of Finance about this issue. How can you fail to release K100,000?

Sir, there was a time when we did not have a lift in the ministry. We did not wait for another Budget. We went to the Ministry of Finance. They sympathised with us and released money to repair the lift there. That is the way we should be operating. I do not think the hon. Minister of Finance can fail to release K100,000 to send to our poor brothers and sisters in the North-Western Province to put up iron sheets in schools with blown off roofs, where children are not learning. They are ignoring the cries of the people by claiming that there is no money in the Budget. However, when it comes to travelling with the President, I see hundreds of vehicles following him. One air ticket to travel abroad costs about the same amount as the roofing sheets which are needed in some areas. They are failing to apply money where it is needed. We need to support this ministry.

I thank you, Sir.

Mr Namulambe (Mpongwe): Mr Chairperson, thank you for giving me this opportunity to debate this Vote, which I support. Before I advance some of the points that I have, may I appeal to our colleagues in the United Party for National Development (UPND) who have decided to boycott the deliberations in the House to come back to the House ...

Mr Zulu: Today, again?

Mr Namulambe: ... because this is a very important session in which we are considering the Budget.

Sir, today, we are dealing with a ministry that is very attached to the community, the vulnerable, who are the people that we represent. It is for this reason that I would have loved to get valuable contributions from the some of our colleagues from the UPND in advising the Government on some of our experiences in our respective constituencies so that the programmes for the people that we represent are addressed properly. I, once again, appeal to them to end this boycott. Otherwise, it may not be of value if they continue to do so.

Hon. Government Members: Hear, hear!

Mr Namulambe: Sir, it is important for us to debate national issues because there are people whom we represent. Much as there are problems, let us address them appropriately at appropriate times.

Mr Chairperson, I like the statement the hon. Minister issued regarding what has been done in her ministry and also what they intend to do in the coming year. However, there are certain issues that I would want to address such as the overlapping functions between her ministry and, for instance, the Ministries of Youth and Sport, and Gender. She had talked about the support being given to 700 women clubs and I know that the Ministry of Gender is also helping some women clubs. So, there is a need to harmonise the work with these clubs because they may be dealing with the same people. The Ministry of Gender is not at district level, so maybe, when it comes to its functions, it could be important that the officials from the Ministry of Community Development and Social Welfare work hand in hand with it so that there is no duplication of functions in terms of assistance given to the women clubs.

Sir, when I brought out the fact that this ministry could have overlapping functions with the Ministry of Youth and Sport, I was talking from experience. This is because both ministries claim superiority on who should administer the Child Policy because the Ministry of Community Development and Social Welfare also deals with orphans and vulnerable children. At the time we were dealing with the issue of taking the vulnerable children to skills training centres at Chiwoko and the Kitwe Zambia National Service (ZNS) camps, we had a conflict because we did not know which ministry had this responsibility. So, we ended up picking youths instead of the children for whom the programme was meant.

Mr Chairperson, also, with regard to the administration of the Child Policy itself, there is no clear cut stance to determine which ministry is mandated to administer that policy. It is more or less a policy which is administered jointly. At some point, I remember that the Cabinet ordered the two hon. Ministers to come up with a joint cabinet memorandum so as to see how the Child Policy was going to be administrated. So, as the hon. Minister winds up her debate, she should talk about how the Child Policy is currently being administered because I know that the Department of Child Development is in the Ministry of Youth and Sport and there is a department in her ministry which is dealing with orphans and vulnerable children.

Mr Chairperson, let me talk about the issue of the Food Security Pack and Social Cash Transfer schemes. These programmes are, indeed, very important for the people whom we represent. If well administered, they could actually uplift the living standards of our poor people in the rural areas. The challenge is the way some officials administer these programmes.

Sir, let me share with this House what I encountered when I served as Permanent Secretary in Mwinilunga. At one time, when the Ministry of Community Development and Social Welfare, through the Department of Social Welfare, was distributing blankets and some foodstuffs to the old people, I randomly picked a name of one of the beneficiaries and requested to visit that person to see the impact of this programme and whether he was benefiting from what the Government was doing. One of the officials told me that the person stayed in a far-flung village and that it was difficult to reach that area. Fortunately, together with the District Commissioner, I managed to reach that village. When we asked for the person we had gone to see, we were told that he died ten years ago, yet his thumb print was allegedly taken two weeks before I requested to visit him. I argued that he was recently given beans, cooking oil, rice and two blankets and I even showed the people at his village his thumb print. They still insisted that he died ten years old. I asked to see his grave because I wanted to prove a point. I was shown his grave. The officer who was issuing out the items almost collapsed and, of course, I immediately suspended him.

Sir, we need to know the beneficiaries of the Food Security Pack Programme. In Mpongwe, if this programme is there, then I do not know who the beneficiaries are. I only see people lining up at the District Agriculture Co-ordinating Officer (DACO’s) Office for the Farmer Input Support Programme (FISP). It is also important to monitor the Social Cash Transfer Scheme so that it benefits the intended beneficiaries. This is because some officers use this money for their personal business and then later replace it. So, the Government needs to come up with a monitoring mechanism on the funds that it releases. These programmes are very important for our vulnerable people. Thus, we need to monitor them properly. The ministry should have a monitoring and evaluation team that is effective. I urge the hon. Minister and her two Deputies to ensure that the officers at provincial level visit the district offices at random and ask for documentation on these programmes. Most of the officers in the Government do not read reports. Thus, they do not even realise whether the reports submitted are different or the same.

Sir, let me talk about the people who are physically challenged. These people need special attention. I have noticed that as a way of integrating them into the society, we make them queue up as if they are able bodied. There should be special treatment for people who are physically challenged because they did not choose to be in that condition. I am not saying that we should encourage them to be lazy.

Sir, one of the newspapers carried a picture of a physically challenged person who has no arms, but is able to make doors using his feet. If anything, these people do not like to be looked upon as lazy people. They want to do something. Therefore, they must be encouraged to do something. It is for this reason that I want to appeal to the Republican President to emulate what the former President did by appointing Hon. Lazarus Tembo Deputy Minister in one of the ministries then. It is important that when these nominations are being made, the physically challenged considered because it is very difficult for them to go out there and campaign for a seat.

Sir, I know that it is difficult to help the physically challenged people because they are  difficult people to deal with, especially the blind. If we can have one of them in positions of leadership and entrust them with the role of dealing with their colleagues, they would do better. Use a thief to catch a thief. It is important that when we are considering people to appoint in positions of authority, we do not just look at the able bodied.

Sir, as we are championing the issue of appointing women to leadership position, let us also champion the issue of appointing the physically challenged to positions of authority because they can be of help in developing the country. Although some of them could have difficulties in walking, they do not have difficulties in thinking. Some of them could have challenges with the sight, but do not have the challenge in terms of thinking. Let us try to promote such people. We should also monitor the performance of the clubs which the ministry has been initiating. Are they performing well? Are the funds properly utilised? We ought to do this because we have the responsibility to ensure that the public funds that the Government is spending are properly accounted for. Let us ensure that there is value for the money expenditure so that the people can see and appreciate the efforts that the Government is making. Without proper monitoring and evaluation, the programmes by the ministry will not achieve the intended results. The Government should also ensure that it publicises what it is implementing. People should know in each and every district what programmes the Government is implementing so that the public can help us do the evaluation.

 Mr Chairperson, I thank you.

Hon. Opposition Members: Hear, hear!

Ms Kabanshi: Mr Chairperson, I thank you for giving me this opportunity to wind up debate.

Sir, from the outset, I would like thank the two hon. Members, Hon. Muchima and Hon. Namulambe, for the positive contributions that they have made. I would like to react to the point that was raised by Hon. Muchima. Hon. Muchima, …

 Mr Muchima: Yes!

Laughter

Ms Kabanshi: … this Government, which is being led by His Excellency, Mr Edgar Chagwa Lungu, is focused and committed to uplifting the living standards of our people.

 Hon. Government Members: Hear, hear!

 Ms Kabanshi: Sir, the hon. Member said that we take resources from other area to fund by-elections. I want to advise Hon. Muchima that sometimes, it is important for us to be truthful in what we say. We are scaling up the Social Cash Transfer Programme to seventy-seven districts. Are we having elections in all those districts?

Hon. PF Members: No!

Ms Kabanshi: Sir, we are not. Therefore, what Hon. Muchima said is not correct. Let us be truthful as we try to address these issues.

Mr Chairperson, let me comment on the blown off roofs and the bursaries that are supposed to be given to the students who cannot afford to pay school fees. The Government is trying to meet those challenges. This Government is trying to help as many students as possible. We cannot do everything.

Sir, in promoting the Family Planning Programme, we were working together with the Ministry of Health to scale up family planning so that, at least, the families can have the manageable number of children that they can afford to feed and take to school. However, we still remain committed to help the vulnerable through many different programmes.

Mr Chairperson, Hon. Muchima also talked about the hammer mills that my ministry used to buy and distribute. The hammer mills only benefited a small group of people. When we came into power, the Social Cash Transfer Programme was only in thirteen districts. As I am speaking today, the Social Cash Transfer Programme is benefiting 145,000 people. By next year, the beneficiaries will increase by 100,000 because we are going to cover about 250,000 people. We want as many people to benefit from the Government coffers as possible. I have gone round and seen that the hammer mills which were distributed under the Movement for Multi-party Democracy (MMD) are only benefitting a few individuals. The PF Government does not want to leave out anybody in its projects.

 Hon. Government Members: Hear, hear!

Ms Kabanshi: Sir, if those hammer mills worked well, we could have been talking about reducing the poverty level, maybe, by 30 per cent. The current statistics shows that the poverty levels were only reduced by 3 per cent, which means that the hammer mills have not had so much impact on the communities. It is important that we all work together and see how we can solve the problems of the people.

Mr Chairperson, Hon. Namulambe talked about the overlapping of programmes among different ministries such as the ministries of Youth, Sport and Child Development, Gender and my ministry. It is true that our functions overlap. This is also common for other ministries. What is required is for the hon. Ministers from different ministries is to work together.

Sir, the Ministry of Youth, Sport and Child Development is responsible for Child Development while my ministry is in charge of taking care of the vulnerable children. Therefore, these three ministries should work together to enable us to deal with all the issues effectively.

Mr Chairperson, let me now comment on the monitoring of our projects.  I want to say that the PF Government has done very well in this area.

 Hon. Government Members: Hear, hear!

 Ms Kabanshi: Sir, when the PF Government came into power, it bought about forty-six Land Cruisers and sent them to all the areas where we are implementing different programmes. We also bought some motorcycles to enable us to reach out to as many people as possible. Apart from that, we also distributed 100 bicycles in all the areas where we are implementing the Social Cash Transfer Programme. We have also engaged the officers in my ministry so that we can work together and utilise the equipment which has been given to the communities to enhance the monitoring process. We do not want people to just sit in their offices when they should be reaching out to the needy. That is why we have embarked on improving the country’s infrastructure like grading the feeder roads. When we give people vehicles and motorbikes, we want them to reach out to many places. Lunga is also being considered to have its channels dredged so that our officers can reach all the areas there including those that are hard to reach.

Sir, on the disabled, I want to say that the PF Government loves everybody and does not want to leave anybody behind. That is why, when the PF came into power, the first Act to be passed by this Parliament was the Persons with Disabilities Act. A policy was also put in place so that it can be implemented. The hon. Member also talked about the farms for the disabled. To this effect, the Government has increased the funding to the Zambia Agency for Persons with Disabilities (ZAPD) from K9 million to K21 million. What we want is the farms to be productive. That way, we will create an enabling environment for the disabled to achieve their dreams. We do not want them to just be moving around. They should be productive.

Sir, I want to thank all the hon. Members for supporting the Vote for my ministry. Let us work together and develop this country.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Vote 45/01 ordered to stand part of the Estimates.

Vote 45/02 ordered to stand part of the Estimates.

Vote 45/03 ordered to stand part of the Estimates.

Vote 45/04 ordered to stand part of the Estimates.

Vote 45/05 ordered to stand part of the Estimates.

Vote 45/06 ordered to stand part of the Estimates.

VOTE 33 – (Ministry of Commerce, Trade and Industry – K318,300,884).

The Minister of Commerce, Trade and Industry (Mrs Mwanakatwe): Mr Chairperson, I thank you for the opportunity to deliver my policy statement on the 2016 Budget Estimates for the Ministry of Commerce, Trade and Industry. My ministry is charged with the responsibility of formulating and implementing policies and programmes to promote the growth of the commercial, trade and industrial sectors. The ministry is now also responsible for co-operatives development.

Sir, the strategic focus of my ministry has been:

(a)    the growth of the manufacturing sector through value addition;

(b)    expanding trade and market access for Zambian goods and services;

(c)    increasing citizen involvement in wealth creation; and

(d)    the creation of a supportive and conducive investment and business environment.

Mr Chairperson, this is in line with the ministry’s role in the Strategy Paper on Industrialisation and Job Creation.

Manufacturing Sector

Mr Chairperson, in the last three years, the manufacturing sector in Zambia has increasingly diversified with previously declining sub-sectors showing marked improvements. The manufacturing sector’s contribution to the Gross Domestic Product (GDP) averaged 7.6 per cent with the food and beverage sub-sector continuing to dominate the sector. The paper and paper products, chemical, rubber and plastic products and the non-metallic mineral products also made significant contributions to the manufacturing sector. The textiles and leather products sub-sectors, which in the past, had performed badly, showed significant improvement, growing from the negative growth of about 55 per cent in 2011 to positive growth averaging about 11 per cent between 2012 and 2014. This growth in the various sub-sectors of manufacturing has been as a result of increased investments in the mining and agriculture sectors, which supply raw materials into manufacturing. This signifies that our interventions to ensure value addition to locally available natural resources and produce is yielding desired results.

Sir, although growth in the wood and wood products as well as the non-metallic sub-sectors was below expectations, the two sub-sectors experienced some growth, which is positive in itself.

Mr Chairperson, my ministry will continue to facilitate and promote the growth of the manufacturing sector as a key priority. We are revising the National Industrialisation Policy to refocus, primarily, on value addition and increased citizen participation in manufacturing. We also intend to put in place a policy framework that will expand the role of small and medium enterprises in value addition. Our goal is to ensure that manufacturing and industrialisation in general contribute effectively to the diversification agenda articulated by His Excellency the President during his Address to this House.

Investment Promotion

Mr Chairperson, the promotion and facilitation of local and foreign direct investment is critical to our value addition and diversification programme. In order to attract both local and foreign investment, the Government has continued to undertake trade missions to attract investments, some led at the highest level of His Excellency the President and Her Honour the Vice-President and Minister of Development Planning. Since the coming into office of the Patriotic Front (PF), annual investment pledges have averaged US$6.5 billion. The various investment missions undertaken by the Government this year alone have resulted in pledged investment in excess of US$4.2 billion. The key investment pledges recorded in 2015 include the establishment of a railway line from Chipata via Petauke to Mpulungu Harbour, copper cable manufacturing to be located in Lusaka South Multi-Facility Economic Zone (LSMFEZ), a cement factory plant to be based in Chongwe and additional plants to be established in collaboration with Ndola Lime Limited and Oriental Quarries Limited. This attests to the favourable investment policy that this Government has put in place to ensure a private sector led economy.

Sir, investment pledges are an important measure of investor confidence, as they represent the real intent by those who seek to make Zambia the destination for their money. One of the major investments that were recently actualised is the Dangote Cement Company Limited. This company has invested US$400 million on the Copperbelt in Ndola rural, which has as of August, 2015, created 1,500 direct jobs and about 5,500 indirect jobs. Actualised investments for 2014 were estimated at US$24.7 billion, whilst the actualised investments for 2015, from January to June, was estimated at US$24 billion. These values are only from projects that are registered with the Zambia Development Agency (ZDA). Investments were in various sectors, including infrastructure, manufacturing, agriculture, energy, mining and tourism.

Private Sector Development and Business Reforms

Mr Chairperson, Zambia continues to implement targeted investment climate reforms and business environment reforms through the private sector development interventions. Private sector development provides for expanding job opportunities, increased supplies of goods, services and tax revenues. The overall objective of improving the business environment is to increase private investments, improve competitiveness and increase domestic, regional and international trade resulting in more people escaping from poverty by either starting a business or finding employment a new or existing business. The business reforms are aimed at improving the regulatory business environment.

Mr Chairperson, according to the latest World Bank 2016 Doing Business Report, Zambia ranked ninety-seven out of 189 countries. This puts Zambia at eighth position in Africa, sixth in Sub-Sahara Africa, fifth in the South African Development Community (SADC) and fourth in the Common Market for Eastern and Southern Africa (COMESA) in terms of the ease of doing business. This shows that Zambia improved her business regulatory quality and efficiency. Zambia now stands at ninety-three out of 148 economies in the Global Competitiveness Index for 2015/2016 and is the eighth most competitive economy in Africa.

Sir, during the period under review, other business reforms undertaken included the automation of single business levy and construction permits. The Business Regulatory Act was enacted in 2014 and the Business Regulatory Review Agency (BRRA) has been established and made operational. The purpose of this institution is to ensure the development of quality business regulation that is informed by a comprehensive regulatory impact analysis.

Trade Sector

Mr Chairperson, the country has continued to increase trade with total exports and imports recording a growth rate of 4.3 per cent and 7 per cent, respectively, in 2014. The growth in imports has resulted in a declining trend in the trade surplus. This trend has continued into the current fiscal year. The decline in the trade surplus is attributable to the decline in international commodity prices. The major exports continued to be the intermediate goods category mainly consisting of copper cathodes and other copper-related products, whose prices on the international market have not been favourable.

Sir, the percentage share of non-traditional exports to the total exports was 21 per cent in 2014 and rose to an average of 25 per cent in the first three quarters of 2015. The major non-traditional exports have been maize, excluding seed, copper alloys, refined copper wires and tobacco. Others included cotton, sulphuric acid, precious or semi-precious stones, raw cane sugar, electric energy, cement and semi-manufactured gold. Asia, mainly dominated by China, Europe and SADC, mainly dominated by the Democratic Republic of Congo (DRC), were the largest export markets accounting for about a third of the total exports.

Sir, major imports have been gas oils and/or petroleum oils, cobalt oxide, machinery and equipment and chemical fertilisers. The SADC region remains Zambia’s largest source of imports, accounting for above 50 per cent of the country’s total imports. The second largest source of imports was the Asian region, accounting for about 30 per cent of Zambia’s total imports.

Mr Chairperson, in recognition of the strategic importance of the regional markets, I am pleased to inform this House that Zambia signed a bilateral trade agreement with the DRC. Negotiations with the Angolan Government have also been concluded and we should be signing the agreement in the very near future. The bilateral agreements facilitate duty and quota free access into the DRC and Angola for most goods produced in this country, thereby expanding our non-traditional exports significantly. These countries significantly expand the market for Zambian products.

Sir, further, Zambia was among the Eastern and Southern African countries that initialed the tripartite Free Trade Area (FTA) Agreement, which covers COMESA, the East Africa Community (EAC) and SADC. The tripartite FTA will be the largest trading block on the continent, bringing together a population of over 625 million people from twenty-six countries and a combined gross domestic product (GDP) of US$1.3 trillion and a rapidly growing middle class. It will represent a significant market for Zambian goods and services. We will, therefore, be signing the agreement once the ratification formalities have been concluded. Further, my ministry will continue to encourage and facilitate Zambia’s utilisation of preferential market schemes offered by China, Canada and United States of America (USA).

Standardisation and Quality Assurance

Mr Chairperson, in order to compete favourably on the international market, Zambian products have to meet the required quality and standards. A sound standardisation and quality assurance system is a necessary pre-requisite to trade expansion. The national quality infrastructure plays a vital role in supporting the production of quality products and assuring our trading partners of the integrity of our products. In this regard, my ministry has continued to invest in the Zambia Bureau of Standards (ZABS) and Zambia Weights and Measures Agency (ZWMA), in collaboration with our development partners. Work on the accreditation of the testing laboratories across the country has commenced. Further, over 100 laboratory staff have been trained in international standards certification. This is all part of skills enhancement for laboratory staff that is required for the laboratories to be accredited. The Government, in collaboration with its co-operating partners, is also procuring equipment to enhance the country’s capacities in legal and scientific metrology. This equipment will facilitate an expanded scope of inspections and allow for standardisation and quality assurance services to be available nationwide.

Mr Chairperson, in terms of a legal framework, I am pleased to report to the House that in the next sitting, I will bring four Bills that will reform the institutional framework on standardisation, quality assurance and metrology and bring it line with international best practices.

Economic empowerment

Mr Chairperson, in the area of economic empowerment for the people of Zambia, the Government is largely using the Citizens Economic Empowerment Commission (CEEC) as one of its principal vehicles through which financial support is being provided to Zambians to facilitate their effective partnership in value addition to local raw materials and produce.

Sir, in 2013 and 2014, the CEEC approved over 1,800 empowerment projects located in forty-two districts of the country disbursing over K51 million in empowerment funding. About 91 per cent of the projects funded from the empowerment fund are located in rural areas. Projects being undertaken by women accounted for 37 per cent of the total projects. While the number of projects undertaken by the youths accounted for 35 per cent.

Mr Chairperson, through the Value Chain Cluster Development Programme, the CEEC has been supporting value addition in forestry and agro products. The CEEC funded thirty-four timber processing projects on the Copperbelt and in the Western Province at a total cost of K2.2 million. In Lufwanyama District, K1.8 million has been disbursed to finance five timber processing projects.

Mr Chairperson, with respect to food processing, the CEEC has, so far, disbursed a total K21.5 million to finance ninety food processing projects. These value addition investments are making it possible for the Zambian people to add value to resources readily available in their district with the ultimate objective of ensuring equitable economic development. These efforts by the CEEC contributed to the creation of 17,000 jobs.

Mr Chairperson, going forward, in 2016, the CEEC will work towards implementing the K60 million African Development Bank supported cassava commercialisation initiative in Kasama, Mansa and Solwezi districts. The initiative is expected to create 12,000 jobs and off-farm jobs and roll out the Value Chain Development Programme (VCDP) for thirty districts which are yet to be reached by the programme. The VCDP should lead to the creation of 30,000 sustainable rural jobs within the next two years. In addition, the CEEC will work towards the creation of new value chain clusters in eight districts that should ultimately create 4,000 sustainable jobs within the next two years.

Mr Chairperson, in this connection, the Government, through the CEEC, has allocated in the 2016 Budget K187.5 million to the empowerment fund. I want to commend the hon. Minister of Finance for this much-improved allocation to the CEEC fund.

Co-operatives Development

Mr Chairperson, co-operatives are a strategic area of focus in delivering both economic and national social development. The recent transfer of the co-operative portfolio to my ministry is intended to re-position the co-operative concept as a viable business model which will contribute to private sector growth and contribute to wealth and job creation. The majority of co-operatives registered in 2015 were multi-purpose co-operatives. Most of them were agriculture oriented. The number of co-operatives registered as at October, 2015, stood at 34,649 nationwide.

Mr Chairperson, despite this large number of registered co-operatives, it should be pointed out that a significant number of them are largely inactive. The key challenges faced by co-operatives include under capitalisation, inadequate entrepreneurship and management skills, failure to respond and to adapt to the changing macroeconomic environment, low literacy and numeracy levels, poor governance and low co-operative education and training.

Mr Chairperson, my ministry is committed to revamping the co-operative movement so that it plays a pivotal role in job creation and poverty reduction. In order to ensure that the co-operative concept takes root as an effective business model contributing to poverty reduction, wealth and employment creation, my ministry will review the National Co-operative Development Policy to broaden its scope in order to stir the development of all forms of co-operatives. It is important for co-operatives to have a legal framework that supports them as a business model suitable for all sectors. In this regard, my ministry will bring to Parliament a Repeal Bill and replace the Co-operative Societies Act, 1998 and other subsidiary legislation in order to strengthen the legal and institutional framework that will facilitate the re-orientation and re-formation of co-operative organisations across all sectors.

Sir, further, my ministry will invest in building the capacities of co-operatives and the ministry frontline staff so that the co-operative business is conducted based on sound corporate values and proven business principles. We will partner with stakeholders that promote and render support to co-operative development efforts and programmes in the country.

The 2016 Budget

Mr Chairperson, there has been a significant reduction in the allocation to my ministry, particularly for operations. This is consistent with the Government’s decision to embark on fiscal consolidation. To accommodate these Budget cuts, my ministry has cut back significantly on operational expenses earmarked for 2016. This has been achieved by prioritising programmes which should be supported, and rationalising planned expenditure by focusing on increased synergies between departments. Whereas the transition is expected to be challenging, I am confident that the ministry will remain effective in delivering on its mandate.

Sir, the 2016 Budget allocation to my ministry is K318,300,884. Out of this Budget, K58.8 million of this will be funded by co-operating partners. This House may note that out of the total Budget, K219.2 million has been allocated to statutory bodies as grants. This is because statutory bodies under my ministry are responsible for a large part of the implementation of policies and programmes whilst the ministry focuses on formulating policies, providing of necessary guidance and creating a conducive environment for business and private sector development.

Mr Chairperson, in conclusion, let me re-emphasise that our strategic focus for the medium term remains the implementation of measures to promote industrialisation and job creation in the country. We will continue to implement reforms to improve the business environment and investment climate.

Sir, I call upon the hon. Members of Parliament to support my ministry’s Budget.

Mr Chairperson, I thank you.

Hon. Government Members: Hear, hear!

Ms Kalima (Kasenengwa): Mr Chairperson, I thank you for giving me the opportunity to support this Vote. As most issues have been addressed by the hon. Minister, I will be brief in my submissions.

Sir, firstly, we all know that the Ministry of Commerce, Trade and Industry is key to the running of the economy. Right now, the talk around the country centres on the exchange rate. Everybody is talking about the state of the economy, including those who do not understand economics. This underscores the importance of the Ministry of Commerce, Trade and Industry in ensuring that the economy grows and the country develops. The ministry basically charts the way forward for the nation.

Mr Chairperson, in my brief submission, I will focus on co-operatives. I am glad that when the President came to this House, he talked about the importance of co-operatives. He moved the co-operatives portfolio function from the Ministry of Agriculture to the Ministry of Commerce, Trade and Industry.

Mr Chairperson, most people think of co-operatives are agriculture-oriented. Co-operatives are important because they contribute to the welfare and development of the nation. Through co-operatives, we can generate income for the nation and create jobs.

Sir, from the few things that the hon. Minister was able to pick out, I noted that the co-operative movement did not perform as expected. She indicated that although 36,000 co-operatives were registered, most of them were inactive. This is true. Most co-operatives at the moment are just conduits for collecting fertiliser and other inputs during the farming season, like now. After they collect their inputs, they pack their certificates. In this vein, I would like to appeal to the hon. Minister to ensure that the co-operatives are sensitised about the help which they can access from the Government. They need to be aware that the co-operatives are not just to be used for receiving agro inputs from the Farmer Input Support Programme (FISP), but other things as well.

Mr Chairperson, I have noticed that it is very difficult to register a co-operative. In my constituency, I have over 300 women’s co-operatives. You will be shocked to learn that less than fifty of these co-operatives are registered mainly because the registration process is very difficult. The registration process is also very long. For example, there are two certificates that a co-operative is supposed to get in order to be registered. One is from the Ministry of Agriculture, and the other one is from the Ministry of Home Affairs. The certificate from the Ministry of Agriculture is very cheap. It is only K10, but the process involved is extremely long and difficult such that people do not want to engage in it. On the other hand, the certificate co-operatives have to get from the Ministry of Home Affairs costs K250. This amount might sound like a small amount, but many groups in Kasenengwa have been finding it very difficult to raise it. Therefore, I appeal to the hon. Minister of Commerce, Trade and Industry, whose ministry has taken over the portfolio function of co-operatives to work on the registration process for co-operatives. The registration process should be made as simple as possible, considering that co-operatives are  vital to the economic development of the nation and for job creation.

Sir, with these few words, I support the Vote.

I thank you, Sir.

Mr Namulambe: Mr Chairperson, thank you very much for giving me this opportunity to debate this Vote. I also thank the hon. Minister of Commerce, Trade and Industry for giving her policy statement on how she wants the ministry to run next year, in order to bring prosperity to our Mother Zambia. From the outset, let me say that I support the Vote for the Ministry of Commerce, Trade and Industry. I also want to congratulate my older brother, Hon. Mpundu, for his elevation to the position of hon. Deputy Minister in this ministry.

Sir, Zambia, being a landlocked country, is an opportunity for it to showcase its potential to provide what is lacking in other nations. I was at the border between Zambia and Zimbabwe, and was glad to see that many Zimbabweans are taking our maheu drink to Zimbabwe. Somehow, that is helping us to earn foreign exchange. It is for this reason that value-addition should be encouraged. The Citizens Economic Empowerment Commission (CEEC) should promote value-addition activities for co-operatives. Yesterday, when debating the Vote for the Ministry of Agriculture, I said that I will not eat anything produced from outside the country. Zambians should start adding value to what they produce. Exports to neighbouring countries would make us earn the foreign exchange that we require.

Mr Chairperson, I am aware of a certain company in this country that makes chibwantu, which a lot of people, including myself, keep buying. This drink is also being exported. Therefore, it is important that value addition is encouraged.

Sir, we must support indigenous Zambians who wish to invest locally. Let banks lower rates for Zambians who wish to borrow. If a Zambian invests locally, profits will not be repatriated, as opposed to having foreign investors who come to mine our copper. Their only investment is in terms of equipment which they use to mine the copper. However, this is not investment that we can be proud of because the profits are externalised. In the end, it is the country where these investors come from that benefit more. If we are to grow, let us, as Zambians, think the way Indians do and help each other.

Sir, co-operatives will be good if we work together. We can produce goods which we can export to earn some foreign exchange. Also, profits realised from those exports would be re-invested in our economy which would make it grow. If we depend on outsiders, we will remain impoverished. During the Scramble for Africa, developed countries milked us and have continued to do so through the raw materials they have continued to get. Copper keeps going out of this country. Why can companies not come and invest here and process copper into a finished product?

Mr Chairperson, the hon. Minister talked about the copper cable manufacturing and supplying company’s relocation to the Lusaka South Economic Multi-facility Zone. I do not know whether I got her clearly on the re-location part. I know that Metal Fabricators of Zambia (ZAMEFA) Plc, which manufactures and supplies copper cables, is in Luanshya, Zambia. Re-locating that company will kill Luanshya.  

Mr Chairperson, if the copper cable manufacturing and supplying company which was talked about is ZAMEFA, then it should not re-locate to Lusaka. However, if there are plans to have a similar company at the Lusaka South Economic Multi-facility Zone that can transform copper into a finished product, then I will support them completely.

Mr Chairperson, my colleague from Kasenengwa talked about co-operatives. I think that we ought to educate our people on the types of certificates because there are various laws in this country that gives certificates. For example, what sort of certificates do people get under the Societies Act? There is also the Club Registration Act. The Co-operative Act, under the Ministry of Agriculture, also has these certificates. So, first and foremost, the people should be made to understand what kind of certificates they require when setting up co-operatives.

Mr Chairperson, it is a good thing that the Ministry of Commerce, Trade and Industry will be responsible for the co-operative movement in Zambia. In the past, co-operatives just dealt with agricultural inputs. The co-operatives should do much more than that.

Sir, during the days of the United National Independence Party (UNIP), I remember that some of these co-operatives were running shops. What was lacking was the training of people on how to run the co-operatives. We should invest in training so that our people get educated on what is expected of them. When we talk about value addition, let the CEEC make consideration to fund the co-operatives which are going to come up with viable projects because these are going to be helpful in showing us what kind of businesses we are supposed to promote.

Mr Chairperson, I am glad that the Cabinet listens when we speak. I remember that I once talked against foreigners being allowed to make blocks and sell chickens under the guise of being investors. The decision to restrict such businesses to Zambians must be applauded. After a Cabinet meeting, the Chief Government made an announcement regarding this issue. What we now need to see is the implementation part. We should not see foreigners selling chickens because they are killing our businesses. Let that business be for Zambians.

Sir, on the issue of block making, the directive that foreigners should partner with Zambians was due to expire after six months. We are counting how many more months are left. Let us see to it that at the end of those six months, a decision is made to send investors who have not partnered with Zambians back to their countries. What investment are they bringing? After all, the price of cement has been reduced, but the price of blocks has not reduced. They are just milking us after all. That money is not reinvested in Zambian because they take it back to their countries.  

Mr Chairperson, I hope they are listening to what I am saying because I do not mind even if they go. Zambians can also make blocks.

Mr Muchima: Hear, hear!

Mr Namulambe: Sir, Zambians cannot fail to buy block-making machines. These are programmes which the CEEC can fund. If Zambians form co-operatives, but do not have collateral, let the Government buy the machinery for them so that they can use it and pay back. Check the bank accounts of these foreigners. You will see that there is nothing in them. They send all the money to their countries which means that the dollar that we are crying for is going out of the country. It would help if this money was held by Zambians.

Sir, China deliberately devalued its currency in order to empower the Chinese because the more they exported, the more money they had. At some point, China is going to make sure that its currency goes back up and, at that point, the Chinese will have a lot of money. Let us take advantage of the devaluation of the currency. If I am to export something now, I am gaining because I will have more money once the kwacha gains.

So, Mr Chairperson, it is time that we encouraged our local people to venture into businesses. The degrees which young people get should make them knowledgeable enough to set up businesses. We must not always think of being employees. We must also think of becoming employers. Kansanshi Mine is owned by the Paschall Brothers who have employed thousands of Zambians. As Zambians, we can also form co-operatives and become employers. We can even hire foreigners to come and work for us. We must change our mindset as Zambians …

Hon. MMD Members: Hear, hear!

Mr Namulambe: … and think of ways of contributing to national development.

Sir, all of us have been sick at some point. At times, those who are involved in bad accidents survive while those who were involved in minor accidents died. So, those of us who are still alive must question why God preserved our lives. It could be that there is something that we have not yet done. We, thus, need to make a meaningful contribution to the development of our country. The Bible states that all of us need to work. Those who do not work must not eat so, let us not be lazy. We are all capable of working hard because God has given us the necessary power and authority. Being poor is a choice. It is for this reason that we need to create an enabling environment for the establishment of businesses. As Zambians, we should be productive. Those of us who are charged with the responsibility to be in the House must always be here …

Hon. Government Members: Hear, hear!

Mr Namulambe: … so that we contribute effectively to the running of this country.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Muchima: Mr Chairperson, I have been tempted to say a few words. This ministry is critical to our economy. I would like to thank the President for choosing the current hon. Minister of Commerce, Trade and Industry because she comes from a background of accountancy and is also a business lady.

Sir, Zambia has abundant resources, especially in the mining sector. Therefore, we need to support the hon. Ministers of Commerce, Trade and Industry, and Mines and Minerals Development. This ministry needs to carry out a research on why raw timber is taken to China, but is brought back as a finished product for the Zambians. Is it something that we cannot do in Zambia or could it be that we do not have the machinery or skillS?

Mr Chairperson, secondly, who comes up with the conditions that are attached to these loans? For instance, let me declare interest because I am a businessman. I got a loan from the Citizens Economic Empowerment Commission (CEEC), which has repayment terms which are too strict. There is a need to renegotiate the conditions, especially for those who are in the hospitality industry because it is not all the time that they have clients.

Mr Chairperson, if someone wants to borrow money in developed countries, they will ask that person if he/she has the capacity to repay it. They do not restrict the borrower to pay back the money in one year because someone would not know whether he or she will have customers or not. We need to spread out repayments so that people are encouraged to repay our loans. The repayment conditions should not be uniform. For example, if someone borrows K1 million, he/she should not be told to pay K50,000 every month because it may not be possible for that person to make that kind of money in a month? These are the conditions that are making it difficult for the Zambian economy to grow. The conditions are discouraging Zambians venturing into businesses. The Government should know that we are not going to run away, especially if we put up infrastructure. Why should the Government stiffen the borrowing conditions for its own people?

Sir, if there is any area which this Government needs to enhance, it is the administration of the Citizens Economic Empowerment Commission (CEEC). The Government should borrow cheap money because it has the capacity to do that. Thereafter, it can distribute the money amongst its citizens and compete favourably with the commercial banks. If the Government did that, the banks would automatically be forced to lower their interest rates. The Government should give out loans so that the local hotels can be standardised to the levels of the Inter-continental and Taj Pamodzi hotels. If the Government would do that, the interest rates would go down and there will be employment creation. I know that the hon. Minister has got the capacity because she looks like a person who can perform.

Mr Chairperson, let me say something about the international trade fairs. When you go China, products are always on display and people are encouraged to buy them. When it comes to our trade fair in Ndola, the only products that are available to be bought are foreign products.

Sir, I was in Uganda recently. I was amazed to see locally made well polished chairs and beds by the roadside. Why can we not do the same in Zambia?  The culture which was left by our colonial masters should come to an end.  We should be employers in our own fashion. I know that the country follows the World Trade Organization (WTO) rules and other regulations. It might not be easy for us to export our products to the United States of America because they will find a way to apply strings so that they can protect their indigenous products. We should also be clever and find a way of doing the same. Companies from the West depend on our raw materials. We should also find ways and means to make our raw materials not reach their market in such a manner.

Sir, let us create competition among ourselves. The father and mother that we know is the Government.  When someone is looking for food, that person will go to his mother or even the wife.  When you find that the conditions are stiff, where else can someone go and eat from.

Laughter

Mr Muchima: Mr Chairperson, the Government should relax a bit and let the conditions become easy to handle. If this Government gave fiscal incentives to the local citizens, the economy of this country would expand and promote job creation. The same incentives that are given to foreigners to set up mining companies should be given to the local people like Mr Muchima for him to set up a hotel, buy a truck and other things which are important to his business.

Sir, if the Government gave me money to build a mall in Solwezi or Kalumbila, the local people will benefit from its presence while I will be paying back the loan. In Zambia, most shopping malls belong to foreigners. These are poor people in their country of origin, but have managed to borrow money and invested it in Zambia. Yet, Zambians are not moulding themselves into that status. What are we waiting for? Are we waiting for God? Let us plan for ourselves and move so that we can join those who are already in business.

  Sir, someone talked about engaging in the business of cooking nshima. We need to encourage people who are doing such businesses. The Government should help people who need it. If you went into the market, you would find people who have ventured into carpentry and other sectors. The Government must identify those with needs and address them. If it did that, then this economy would improve.

Sir, adding value to products is critical for any business to thrive. When you look at our infrastructure, for instance in Ikeleng’i where we produce pineapples, you will agree with me that the road network is very poor. So, when someone is transporting the pineapples to Lusaka, he/she faces so many challenges because at times, the vehicles being used to transport the pineapples break down on the way. Being a perishable product, the pineapples may go bad if they are not transported on time. Ikeleng’i is close to the border between Zambia and Angola, and so, if the multi-facility economic zone (MFEZ) was deliberately put up in the rural parts of the country like Zhimbe, it would have turned it into a city. Then, you would see how people would trek from here to go and live there. Just look at Nakonde District. People live there and are doing a lot of businesses with their colleagues from the neighbouring country. The same thing can happen to our border areas. By doing that, we would be creating employment for our people.

Mr Chairperson, the packaging of our products in Zambia is very poor. We produce honey, yet we do not know how to package it. We always look for used cooking oil containers and put our honey in there. That sort of packaging is not attractive. It is like when you are a woman elo wazilekelela. If you do not dress well and polish your shoes, nobody will look at you. So, let us package our products properly. Let the Government bring in packaging machines and make them affordable. That way, people will be able to package their products properly. If we do that, we shall not only be adding value to these commodities, but we will also be making them attractive. Further, I wish to urge the hon. Minister to re-examine the capital market. How is it doing in Zambia? How long has it been in existence? Has it lived up to expectations? If there are problems, what can we do to make it vibrant so that the shares become attractive? Do we need integration within the country or the region?

Sir, in Zambia, we have plenty of water. We must encourage people to own sugar plantations. Look at the Zambia Sugar Company. It produces sugar and uses the by-products to produce electricity. Today, if we took that deliberate step, say in my area where I have vast land, and planted sugar cane, we would create employment and add value to that product.

Mr Chairperson, I am glad that you talked about Angola and the Democratic Republic of Congo (DRC), which are my neighbours. Those countries depend on Zambia for many things. Unfortunately, as a country, we do not want to improve our border areas. Look at the Kasumbalesa Border Post. We should open up other areas so that we boost our country’s trade because we have the potential to do so. I am glad that she brought up the issue of our legal framework. Let that legal framework look at the contribution of a Zambian. I am appealing to the hon. Minister to do something about the Pineapple Cannery in Ikeleng’i. We produce the sweetest pineapples in the world. Even if there are some investors there already, we still need the support of the Government. I am glad that the hon. Minister has indicated that she wants to visit that place. She is welcome to the area. That is the attitude we want.

Sir, although game ranching is more inclined to tourism, it is important that we venture into it. We have vast land and water, and so, it would thrive there. As I am speaking today, it is raining heavily there. We can also brand the African mushroom. Other than the mushroom, we also have beans from Mbala and Solwezi, which we can package nicely and sell. We have pupwe which can also be marketed. When you go to China, you will not start looking for Zambian food, but our Chinese counterparts will come to Zambia and look for their food here. Let us also make our food attractive and enjoyable. We have lost grip on our economy. There is a need to get hold of it once again. Hon. Minister, I know that you are vicious and so, I want to encourage you to move us to another level.

With these few words, I thank you, Sir.

The Chairperson: Hon. Minister, wind up debate.

Mrs Mwanakatwe: Mr Chairperson, I ...

The Chairperson: Order!

Laughter

(Debate adjourned)
________

HOUSE RESUMED

[MR SPEAKER in the Chair]

(Progress reported)

_______

The House adjourned at 1257 hours until 1430 hours on Tuesday, 24th November, 2015.