Debates - Thursday, 31st October, 2013

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DAILY PARLIAMENTARY DEBATES FOR THE THIRD SESSION OF THE ELEVENTH ASSEMBLY

Thursday, 31st October, 2013

The House met at 1430 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

__________

QUESTIONS FOR ORAL ANSWER

BRIDGE TO LINK KANG’WENA TO LUANFULA

156. Mr Katuka (Mwinilunga) asked the Minister of Transport, Works, Supply and Communication whether the Government had any plans to construct a bridge across the Kafue River to connect Kang’wena to Luanfula in Solwezi East Parliamentary Constituency.

The Deputy Minister of Transport, Works, Supply and Communication (Mr M. H. Malama): Mr Speaker, there are no immediate plans to construct a bridge across the Kafue River along the primary feeder road connecting Kang’wena to Luanfula in Solwezi East Parliamentary Constituency. However, depending on the availability of funds, it will be considered for inclusion in the Road Sector Annual Work Plan (RSAWP) once it has been prioritised by the local road authority.

I thank you, Sir.

NAMUSHAKENDE/NAKANYAA AND NAKANYAA/NAMAUMBA ROAD

157. Prof. Lungwangwa (Nalikwanda) asked the Minister of Transport, Works, Supply and Communication:

(a) when the rehabilitation works on the Namushakende/Nakanyaa Road in Nalikwanda Parliamentary Constituency would be completed;

(b) when the culverts at Nakanyaa would be rehabilitated;

(c) when the rehabilitation of Nakanyaa/Namaumba Road would commence; and

(d) what the time frame for completion of the project at (c) above was.

Mr M. H. Malama: Mr Speaker, works on the Namushakende/Nakanyaa Road have been completed and the road is passable.

Sir, due to constraints in funding for the 2013 RSAWP, works on the culverts at Nakanyaa will be considered in the 2014 RSAWP. The Nakanyaa culverts were not prioritised by the responsible local road authority, hence their exclusion from the 2014 RSAWP. However, in 2014, they may be considered for inclusion in the 2015 RSAWP, depending on the availability of resources and the order of priority submitted by the local road authority.

Mr Speaker, the Nakanyaa/Namaumba Road is approximately 43km and the approximate duration of its rehabilitation is eighteen months.

I thank you, Sir.

Prof. Lungwangwa: Mr Speaker, the response to part (a) of the question is erroneous and embarrassingly disappointing because only 10km of the 55km stretch has been completed. The ministry has been misled by the officials on the ground.

Mr Speaker: What is your supplementary question?

Prof. Lungwangwa: Mr Speaker, my question is: What will the ministry do about the disappointing fact that it has been made to give an erroneous answer by the officials on the ground?

Mr M. H. Malama: Mr Speaker, the only thing that we can do is to re-visit this matter. We cannot keep arguing here. The information I have provided is what we were told, and I have developed special interest in knowing who is telling the truth. For that reason, I promise the hon. Member that we will get back to him soon and give him the correct answer.

I thank you, Sir.

Mr Mufalali (Senanga): Mr Speaker, I have driven on the Namushakende/Nakanyaa Road. Does the ministry have inspectors tell it the facts on the ground? I ask this question because even the 10km that is claimed to have been worked on is a disaster. It is not something about which one can be happy.

Mr M. H. Malama: Mr Speaker, I can assure the hon. Member that there is a system of inspectors or engineers in place who give us information. However, when there are disparities between what our officials on the ground say and what we are told in this House, we take it upon ourselves to visit the place.

I thank you, Sir.

Mr Mooya (Moomba): Mr Speaker, culverts are just pipes that are very cheap compared with bridges. Why can those culverts not be constructed immediately?

Mr M. H. Malama: Mr Speaker, hon. Members of Parliament need to know that this country is not small. It may look like this work is small, but we always rely on what comes to us. We consider what we are requested to prioritise. Yes, it could be a small job, but you need to know that the personnel at the ministry or the Road Development Agency (RDA) cannot just dream about what is required, for example, next month. They will always depend on the information they are given to know what needs to be done in a given area. That is why it is always important for hon. Members from all parts of this country to inform the local authorities whenever there is a problem so that the information can be passed to the RDA regional offices. The RDA regional offices will, then, relay it to their national office. When that is done, we will not delay in working on small projects throughout the country.

I thank you, Sir.

Rev. Lt. Gen. Shikapwasha (Keembe): Mr Speaker, the hon. Members of Parliament who have asked the questions on this issue have driven on the road in question. Would it not be prudent for the hon. Minister to send a team to go and verify the information or do it, himself?

Mr M. H. Malama: Mr Speaker, that is what I said I would do. This question came to us and we followed the Government procedure of getting answers to bring to the House. When the hon. Member who asked the question said that we gave a disappointing answer, I, then, said that we would follow it up. So, we will make a serious follow-up.

I thank you, Sir.

Mr Miyutu (Kalabo Central): Mr Speaker, the hon. Minister indicated that there is a breakdown of communication between the ministry headquarters in Lusaka and the offices in the rural places. Therefore, will the ministry consider decentralising the Rural Roads Unit (RRU) to the districts so that it gets information from the experts?

The Minister of Transport, Works, Supply and Communication (Mr Mukanga): Mr Speaker, firstly, I was listening to the hon. Deputy Minister as he was answering, and he did not say that there is a breakdown of communication. We have collected the information and we will verify it, including what we have been told by the hon. Members, through visits. We want to ensure that we are doing the correct thing. Secondly, to answer the hon. Member’s question, we do not have the intention of decentralising in that manner.

I thank you, Sir.

Dr Kaingu (Mwandi): Mr Speaker, do hon. Ministers bother to verify the information that they get from their officers on the ground or do they just bring it to the House unverified?

Laughter

Mr Mukanga: Mr Speaker, I appreciate the question from the ‘hon. Minister’ —

Interruptions

Mr Mukanga: Sorry, the hon. Vice-President of the Movement for Multi-party Democracy (MMD).

Hon. MMD Members: Hear, hear!

Mr Mukanga: Mr Speaker, we verify every detail that is given to us. We are not copy-cats who just bring the information we receive. We understand the need to give the best answers that we can and strive to do so. However, when there is a problem that you have identified in our answers, then, we research and inform you of the results.

I thank you, Sir.

Brig-Gen. Dr Chituwo (Mumbwa): Mr Speaker, listening to the hon. Minister, I can tell that there is a problem. Is there anything that can be done, between now and 2014, to alleviate the suffering of those people since that area is cut off?

Mr Mukanga: Mr Speaker, I appreciate the question from the Second Vice-President of the MMD.

Sir, we will go back, verify the information and see what we can do in the interim.

I thank you, Sir. {mospagebreak}

PHASING OUT OF BASIC SCHOOLS

158. Mr Sianga (Sesheke) asked the Minister of Education, Science, Vocational Training and Early Education:

(a) what the time frame for the phasing out of basic schools countrywide was;

(b) how many basic schools would be upgraded to secondary schools in Sesheke Parliamentary Constituency; and

(c) how many secondary schools would be constructed in the constituency.

The Deputy Minister of Education, Science, Vocational Training and Early Education (Mr Mabumba): Mr Speaker, the Patriotic Front (PF) Government’s vision in education is to have primary schools offering Grades 1 to 7 and secondary schools offering Grades 8 to 12. All schools will have to conform to that system. However, the implementation of the new system will be in a phased approach as the financial resources required to remove the Grade 8 and 9 pupils from the current basic schools is huge because more secondary schools need to be constructed and some expanded to absorb all learners. Thus, an exact time frame cannot be given at this point in time, but in due course.

Sir, the Provincial Education Officer (PEO) for the Western Province will advise on which basic schools will be upgraded into secondary schools in Sesheke Parliamentary Constituency. For 2014, as we have repeatedly said, the Government’s focus will be to upgrade 220 basic schools countrywide. Therefore, I urge the hon. Member for Sesheke and other hon. Members to consult the PEOs on this matter.

Mr Speaker, the Government’s priority shall be to construct secondary schools in constituencies or districts that do not have them.

Sir, for the information of the hon. Members of Parliament, before Sesheke was split into Mulobezi and Mwandi districts, we already had two secondary schools under construction in each respective area. As I have said before, we need to give priority to other districts or constituencies that do not have any secondary school.

I thank you, Sir.

Mr Sianga: Mr Speaker, whilst I appreciate the response from the hon. Deputy Minister, when will a secondary school be constructed on the West Bank of Sesheke?

Mr Mabumba: Mr Speaker, as I have said, for now, as far as the ministry is concerned, Sesheke had two secondary schools under construction before it was split. The one in Mwandi is almost complete while the one in Mulobezi is not far behind. So, our priority will be to focus on the districts and constituencies that do not have any secondary schools because they have a greater need. Sesheke will be considered at a later stage for additional schools. I have been to Sesheke and I know, exactly, where the secondary school is supposed to be built.

I thank you, Sir.

Mr Mufalali: Mr Speaker, how long will it take for the PEOs to give the information on the schools that will be built and upgraded in each district or constituency?

Mr Mabumba: Mr Speaker, the PEOs have that information. I consulted the hon. Minister earlier and confirmed that the Permanent Secretary is working on some guidelines that will be circulated to the PEOs. Hon. Members need to start consulting their PEOs so that they would have submitted their requirements by the time the list is distributed to the provinces.

Sir, I am sure that this information will be available to hon. Members by December, 2013, or January, 2014.

I thank you, Sir.

Mr Livune (Katombola): Mr Speaker, my understanding is that the schools must be upgraded by January, 2014. When, exactly, is the deadline for the PEOs to submit the required information?

Mr Mabumba: Mr Speaker, we are yet to meet with the PEOs and set a deadline. Once we agree on that, we will come back to this House to inform it before December, 2013.

I thank you, Sir.

SESHEKE WATER RETICULATION PROJECT

158 Mr Sianga asked the Minister of Local Government and Housing:

(a) whether the Water Reticulation Project in Sesheke Parliamentary Constituency would be extended to the following:

(i) Sesheke Secondary School;

(ii) Nalisa Village;

(iii) M’Clop Upper; and

(iv) Lyamango.

(b) what the name of the contractor working on the project was;

(c) what the estimated cost of the project was; and

(d) when the project would be completed.

The Deputy Minister of Local Government and Housing (Mr Kufuna): Mr Speaker, the Water Reticulation Project currently being implemented in Sesheke under the Sesheke Water Supply Improvement Programme does not extend to Sesheke Secondary School, Nalisa Village, M’Clop Upper and Lyamango.

Sir, the name of the contractor working on the project is Best Brands Zambia Limited.

Mr Speaker, the estimated cost of the project is K735,992.50. The project is expected to be completed by 31st December, 2013.

I thank you, Sir.

Mr Sianga: Mr Speaker, when will the water supply problem at Sesheke Secondary School be rectified?

Mr Kufuna: Mr Speaker, we have a pending project for Sesheke, Nalisa Village, M’Clop Upper and Lyamango. The assessments have been done and the cost of the works will be K1.6 million. We are just waiting for funds from the Devolution Trust Fund (DTF).

I thank you, Sir.

Mr Mufalali: Mr Speaker, for some of us, Sesheke High School is the alma mater. Could we have a time frame for the project that will include the school?

Mr Kufuna: Mr Speaker, I said that we were still waiting for funds from the DTF. When the funds are availed to us, we will determine when the project can be completed.

I thank you, Sir.

ESTABLISHMENT OF A GLASS FACTORY IN THE WESTERN PROVINCE

160. Mr Mutelo (Lukulu West) asked the Minister of Commerce, Trade and Industry whether the Government had any plans to facilitate the establishment of a glass factory in the Western Province in light of the abundance of sand in the area.

The Deputy Minister of Commerce, Trade and Industry (Mr Siamunene): Mr Speaker, the Government has put in place policy instruments, such as the Zambia Development Agency (ZDA) Act No. 11 of 2006, which are aimed at attracting private sector investment in priority sectors, including manufacturing, in rural areas. Further, the industrialisation and job creation strategy that the Government has developed is focused on developing value-adding industries that will use the abundant raw materials that the country is endowed with, especially those found in the rural areas. In this regard, the Government will facilitate and support private-sector investment in the manufacturing of glass products in the Western Province.

I thank you, Sir.

Mr Mutelo: Mr Speaker, are the plans to bring in the private sector in the near future or are they in the long term?

The Minister of Commerce, Trade and Industry (Mr Chenda): Mr Speaker, we cannot afford to miss the opportunity to facilitate investment and create employment opportunities and wealth in our country. So, we stand ready to facilitate any would-be investor who will show interest in developing a glass-manufacturing plant in the Western Province.

I thank you, Sir.

Mr Belemu (Mbabala): Mr Speaker, I am aware that the ministry has, from time to time, indicated that it will market Zambia as an investment destination. Is this one of the projects or potential projects that it is marketing as it goes out to promote various investment options?

Mr Chenda: Mr Speaker, for now, it is not one of the projects that we are marketing.

I thank you, Sir.

Mr Mufalali: Mr Speaker, how, then, does the ministry intend to establish a glass factory or persuade private investors to do so if the project is not one of those it is marketing?

Mr Chenda: Mr Speaker, our role, as a Government, is to provide an enabling environment for private-sector investment. For now, we have not seen any investor who has shown interest in investing in that project.

I thank you, Sir.

Mr Antonio (Kaoma Central): Mr Speaker, is there any Government initiative to market investment opportunities in the Western Province to private investors?

Mr Chenda: Mr Speaker, when marketing the country, we showcase the various endowments of the various provinces and districts. For the Western Province, the potential for cashew nut production is the one that we will continue to market to would-be investors.

I thank you, Sir.

Mr Miyutu: Mr Speaker, the issue of investing in cashew nut production has been there for a long time. However, it has not been realised. Could the hon. Minister mention any project planned for the province apart from the cashew nut one?

Mr Chenda: Mr Speaker, the Western Province is endowed with many natural resources, including its fantastic timber and a great potential for livestock production. All these are potential areas for investment. We will not restrict ourselves to cashew nut production. We are showcasing the whole potential that the province has.

I thank you, Sir.

__________

MOTION

BUDGET 2014

(Debate resumed)

The Deputy Minister for Copperbelt Province (Mr Mwenya): Mr Speaker, before we adjourned, yesterday, I was highlighting the major projects that were undertaken on the Copperbelt during 2013. They are endless.

Sir, the theme of the hon. Minister of Finance’s 2014 Budget Address is, “Moving Forward to Consolidate Growth and Social Justice in Peace and Unity.” As the Copperbelt Province, we commit ourselves to achieving that and have already aligned ourselves to it, as can be seen from the very successful holding of the Independence Day Investiture Ceremony in Kitwe recently, which was graced by His Excellency the President, Mr Michael Chilufya Sata, the First Lady, Dr Christine Kaseba, and the First Republican President, Dr Kenneth David Kaunda. The success of that event firmly shows the peace and unity that we enjoy across all political boundaries in the province.

Mr Speaker, I commend the giant step that the Government has taken, through the Ministry of Finance, to provide long-term financing to the private sector, of which a K150 million bond has been secured and is ready for disbursement. The private sector is key to sustainable and consolidated national growth, and a major window for massive job creation which, in turn, will lead to the much-needed poverty eradication in the country.

Mr Speaker, the Government has shown goodwill and extended its support to the doorsteps of private entrepreneurs. It is up to them to take advantage of this opportunity. It is my sincere appeal to the business community to quickly rise to the challenge so that we resuscitate our manufacturing industries on the Copperbelt.

Mr Speaker, this country is in a dire need of infrastructure development and rehabilitation. We need more schools, hospitals and roads to accelerate …

Mr Mweetwa: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Mweetwa: Mr Speaker, thank you very much for affording me the opportunity to raise this point of order, which borders on very serious national interest.

Mr Speaker, the Patriotic Front (PF) Government has been spending a lot of taxpayers’ money trying to shut down a very popular online social media platform called the Zambian Watchdog. It has also gone ahead to harass journalists whom it has linked to the publication’s work. In today’s The Post Newspaper, there is an article under the headline, “Mwamba Got Himself Retired – Mulongoti.” In the opening paragraph, the article reads:

“The Zambian Watchdog has offered to give Mwamba back his former job as the online publication’s correspondent now that he has been with immediate effect retired from the civil service in national interest as Permanent Secretary at Cabinet Office.”

Sir, is the PF in order to expend so much attention and taxpayers’ money on trying to close the very popular social media platform called the Zambian Watchdog and, in the process, accuse it of being a propaganda vehicle for the Opposition when, actually, it is people among its number who are correspondents of that very important publication?

I need your serious ruling, Sir.

Mr Speaker: Well, I do not follow or subscribe to the publication in question. Therefore, it is very difficult for me to state who its subscribers are and what measures have been taken to forestall it or otherwise. So, with my scanty knowledge about the publication, I cannot take any position on the matter.

Continue, hon. Minister.

Mr Mwenya: Mr Speaker, before I was interrupted, I was trying to drive home the point that, indeed, as a country, we need to accelerate sustainable growth and, to achieve that, the country has, if necessary, to borrow for long-term investment and attract investors.

Mr Speaker, what is the essence of having huge reserves at the expense of national development? It is surprising that our predecessors talk about what was left in the reserves, yet the country was left in an obsolete state in terms of general welfare.

Hon. PF Members: Hear, hear!

Mr Livune: Question!

Mr Mwenya: Mr Speaker, there is a well-known Biblical story of three men who were given money by their master who was going away for a long time. The first was left with five, the second with two and the third with one. On his return, the master called the men and asked them what they had done with the money. The one who had been given five had invested his money in a business and multiplied it. The second, who had been given two, had done the same. However, the third, who had been given one, had buried it in the ground. So, he dug it up and gave it back to his returning master.

Hon. Opposition Members: Hear, hear!

Interruptions

Mr Speaker: Order!

Mr Mwenya: Mr Speaker, the Government will definitely borrow to invest for the purpose of triggering the much-needed socio-economic growth in the country.

Mr Speaker, we are grateful to our vastly-experienced hon. Minister of Finance for the wonderful work he is doing. We, on the Copperbelt, are grateful to the Government, through the Ministry of Finance, for the considerations mentioned below in the 2014 Budget.

Mr Speaker, in education, we are proud …

Interruptions

Mr Speaker: Order, on the left.

Mr Mwenya: … that the construction of student hostels at the Copperbelt University (CBU) will now become a reality and Phase II of the construction of Mukuba University is progressing very well.

Hon. PF Members: Hear, hear!

Mr Mwenya: Mr Speaker, we are also grateful that the Copperbelt has been considered for the upgrading of basic schools into secondary schools, and construction of primary school classrooms and teachers’ houses, which have always been a great concern.

Mr Speaker, in the health sector, we are grateful that our two major hospitals, Ndola and Kitwe central hospitals, are on the verge of being modernised to become centres of excellence in health care. A number of clinics and district hospitals are also earmarked for construction and, for others, official opening, …

Mr Chansa: Hear, hear!

Mr Mwenya: … for example, Lufwanyama District Hospital.

Mr Chansa: Hear, hear!

Mr Mwenya: Mr Speaker, recently, I launched the rehabilitation of the railway line in Chingola. The works are advancing well and we expect all towns in the province to be linked by rail before the end of 2014.

Mr Mushanga: Hear, hear!

Mr Mwenya: If this is not a milestone, then, what could it be, Mr Speaker?

Mr Speaker, the Constituency Development Fund (CDF) has been very helpful in mitigating urgent needs at the constituency level. Our Government has embarked …

Mr Nkombo: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Nkombo: Mr Speaker, at the mention of the CDF, I was prompted to raise a point of order that I believe to be of extreme importance to this country. The point of order I am raising hitches on a Constitutional breach on the part of the Executive.

Mr Speaker, before I raise my point of order, allow me to invite all those who have the Constitution to turn with me to paragraph one of the Preamble, which states:

“We, the people of Zambia, by our representatives assembled in our Parliament, having solemnly resolved to maintain Zambia as a Sovereign Democratic Republic ... recognise the equal worth of men and women in their rights to participate and freely determine and build a political, economic and social system of their own free choice.”
 
Mr Speaker, under National Sovereignty and the State, Part I, as amended by Act No. 18 of 1996, the Constitution reads:

“i. Zambia is a unitary, indivisible, multi-party and democratic sovereign State.

ii. All power resides in the people, who shall exercise their sovereignty through democratic institutions of the State in accordance with this Constitution.

iii. This Constitution is the supreme law of Zambia and, if any other law is inconsistent with this Constitution, that other law shall, to the extent of the inconsistency, be void.

iv. This Constitution shall bind all persons in the Republic of Zambia and all Legislative, Executive and Judicial organs of the State at all levels.”

Sir, in accordance with the directive principles of State policy under Part IX of this Constitution, we are reminded about the obligations of the State as well as those of the citizen.

Mr Speaker, in his discourse, the hon. Minister for the Copperbelt Province spoke about how helpful the CDF has been not only to hon. Members of Parliament, but also to the constituents. In my hand is a letter on which I have raised this point of order. It was authored on 6th September, 2013, by a very senior citizen of this country, who resides at Ibex Hill, Plot No. 100/635, P.O Box 38171, Lusaka, Zambia. It is addressed to His Excellency the President, Mr Michael Chilufya Sata, State House, ...
 
Hon. Opposition Members: Oh!

Mr Nkombo: … Lusaka. {mospagebreak}

Mr Speaker, the letter reads:

“Your Excellency,

RE: Suspension of Developmental Projects in Mkaika Constituency and Katete District.”

Hon. Opposition Members: Aah!

Mr Nkombo: I hope that the hon. Member for Mkaika and Sinda constituencies are here (looking at Hon. Mtolo Phiri and Hon. L. J. Ngoma).

Mr Speaker: Hon. Member, address the Speaker.

Mr Nkombo: Sorry, Sir.

Mr Speaker: What is the point of order, if I may ask?

Mr Nkombo: Mr Speaker, this letter is what constitutes my point of order. With your permission, I want to quote selected parts of it. I will not take long.

The letter reads:

“Reference is made to today’s discussion with Your Excellency regarding the above subject. The projects that must be suspended or withdrawn, with immediate effect, are as follows:

(i) street-lighting of Katete Stores. Pits were dug two weeks ago, but are awaiting fabrication of the metal street poles. The Ministry of Local Government and Housing, Katete District for action;

(ii) immediately suspend paving of township roads under Pave Zambia 2,000 at Katete Stores and Katete Boma in Mkaika Constituency. Road-clearing commenced last week and tarring has not started. Contractor is on site. This, again, delegated to the Ministry of Local Government and Housing, Katete District Council;

(iii) rural electrification of Matunga, Chavuka, Kadula, Vulamukoko and Chimtende wards. Works in progress. In addition, please, suspend electrification of Milanzi and Sinda constituencies;

(iv) construction of modern market at Katete Stores. Funds already allocated, but works not yet commenced. Ministry of Local Government and Housing delegated;

(v) construction of bus stop at Katete Stores. Funds already allocated, but works not yet commenced. Ministry of Local Government and Housing delegated;

(vi) construction of dam at Katete Stores for urban water supply, ...

This is why I referred to the directive principles of State policy, which bind the State to do certain things, resources being available. I continue with the letter:

“Funds allocated, works not yet commenced. Please, suspend drilling of all boreholes. Action delegated to the Ministry of Local Government and Housing;

(vii) tarring of Mutezitezi/Msoro Road under the Link Zambia 8,000 Initiative. Works not yet commenced;

(viii) co-operatives for Farmer Input Support Programmes are controlled by Movement for Multiparty Democracy (MMD) officials. Ministry of Agriculture and Livestock delegated for action. Please, suspend;

(ix) withdrawal of Social Cash Transfer Programme in Kadula, Vulamukoko and Chavuka wards in Mkaika Constituency.”

Sir, this is most disheartening.

“Ministry of Community Development, Mother and Child Health delegated for action.

Yours faithfully, Mr David Phiri. 
Mobile Number: +260977193307”.

Hon. Opposition Members: Niyamene number!

Mr Nkombo: Mr Speaker, is the Government in order to continue breaching the Constitution by selecting which areas to develop, contrary to the wishes of the people of this country, as dictated …

Interruptions

Mr Speaker: Order!

Mr Chisala interjected while pointing at Mr Nkombo.

Mr Nkombo: Hon. Chisala, do not point at me.

Mr Speaker: Order!

Address the Speaker.

Mr Nkombo: Having lost the by-election in Mkaika by 1,000 to 9,000 votes, this Government is coming up with these divisive methods of governance. Is this Government in order to do that?

Sir, I need your ruling.

Mr Nkombo laid the paper on the Table.

Hon. Opposition Members: Hear, hear!

Mr Speaker: Order!

I have heard the point of order raised by the hon. Member for Mazabuka Central. However, I am at a loss as to how the letter he has just read is actually a breach of the Constitution by the Executive. If I am wrong in failing to comprehend the connection, then, the most appropriate body or branch to determine that is, obviously, the courts of law. If the Constitution has been breached, according to your perception, the right forum is the court. Further, I do not think that this House should be debating correspondence of this sort.

Hon. Government Members: Hear, hear!

Mr Speaker: Regardless of the people corresponding, I do not think that this should be a subject of debate for this House. Besides, we are all aware that one of the fundamental rights protected by the Constitution is the right to privacy. It does not matter how high or low the people corresponding are. We need to respect the right to privacy.

The hon. Deputy Minister may continue.

Mr Mwenya: Mr Speaker, before the disruption, I was trying to re-emphasise the importance of the CDF, …

Hon. Opposition Members walked out of the Assembly Chamber.

Mr Mwila: Mwaya kwisa?

Mr Mwenya: … which has really helped in mitigating urgent needs at the constituency level. We have also seen …

Mr Mulenga: Mufumyemo na ma cards umo!
 
Mr Mwenya: … the support to nearly all the ministries but, more especially, the ministries of Education, Science, Vocational Training and Early Education; Home Affairs and Health.

Mr Speaker, I thank the hon. Minister of Finance for, once again, increasing the CDF. In the agricultural sector, 100,000 hectares have been indentified at Luswishi in Lufwanyama District for the creation of a farming block in order to promote agriculture in the province. Under the forestry sector, the Government recognises the need …

Interruptions

Mr Speaker: Order, on the right!

Mr Mwenya: … to safeguard the environment and use the natural resources sustainably in order to attain the socio-economic development of the country. Even though the Copperbelt has thirty-eight forestry reserves, covering 489,665 hectares, it is faced with dwindling forests due to encroachment, charcoal-burning and illegal cutting of trees. In line with the PF Manifesto’s promise to address the issue, the province has embarked on a tree-planting exercise. A nursery has been started, which is expected to raise 1,500 seedlings annually for planting in the communities and forestry reserves. Further, the chiefdoms have been encouraged to reserve land for tree-planting purposes.

Mr Speaker, in the PF Manifesto, infrastructure development is key to realising sustainable economic development. So, a good number of road projects have been initiated on the Copperbelt Province in the last few years, some of which have been completed successfully while others are still under implementation.

Sir, employment levels have gone up in the province. Currently, over 1,800 people are employed in the various projects in the region.

Mr Mwaliteta: Hear, hear!

Mr Mwenya: This signifies the Government’s commitment to ensuring that infrastructure development’s resultant effect is a reduction in poverty levels and people are able to meet their basic needs at the household level.

Mr Speaker, in line with the PF Manifesto’s policy of maintaining and upgrading water and sewerage infrastructure in the urban and peri-urban areas of the province, various programmes have been implemented since 2011 under Mulonga Water and Sewerage Company (MWSC) in Mufulira, Chingola and Chililabombwe; Kafubu Water and Sewerage Company (KWSC) and Nkana Water and Sewerage Company (NWSC), which services Kitwe …

Mr Speaker: Order, on the right!

Mr Mwenya: ... and Kalulushi districts. We anticipate that the last project will be completed in 2014 and, hopefully, the flow of safe drinking water will improve.

Mr Speaker, lastly, I want to thank the hon. Minister of Finance, again, for revising the Pay-As-You-Earn (PAYE) tax-exemption threshold to K3,000 ...

Hon. Government Member: Hear, hear!

Mr Mwenya: ... and harmonising civil servants’ salaries. That has fulfilled the PF Manifesto’s promise and slogan of “More money in the people’s pockets and lower taxes”.

Hon. Government Members: Hear, hear!

Mr Mwenya: Mr Speaker, with those very few words, I thank you.

Hon. Government Members: Hear, hear!

The Deputy Minister in the Vice-President’s Office (Mr Mwango): Mr Speaker, I thank you for allowing me to contribute to the 2014 Budget. My debate will be on five topics, namely, job creation and deferred recruitment, PAYE, maize marketing, resource allocation and Budget implementation.

Mr Speaker, the Government has deferred Public Service recruitments to 2015. This measure allows us to provide the necessary infrastructure for essential Public Service workers. As a responsible Government, we have decided to focus on infrastructure development in 2014 so that the conditions of current and future Public Service workers are uplifted. In the past, the Public Service recruited workers without putting the basic infrastructure in place. I further wish to state that, whilst the Public Service will suspend recruitment in 2014, the Government will continue to create an enabling environment for the private sector to expand. This will include, but not be limited to, Government investment in economic zones and substantial outlays in energy, roads and agriculture.

Mr Speaker, the Government remains committed to providing relief to workers. That is evident in the unprecedented and generous 2013 wage increases and the adjustment of the PAYE tax-exemption threshold. We have been striving to align ourselves with the food basket. Resources permitting, over the medium term, the PAYE bands will still be adjusted accordingly. This reflects the PF’s thrust towards having more money in our people’s pockets.

Mr Speaker, I commend the hon. Minister of Finance for enhancing transparency in the maize-marketing system. This is the first time that all receipts from sales of maize by the Food Reserve Agency (FRA) will be deposited in a Government account and reflected in the Yellow Book. Further, to strengthen accountability and curtail the accumulation of contingent liabilities, the operations of the FRA will be funded directly from the Budget from 2014.

Mr Speaker, I am glad to note that expenditure allocations have been aligned with the Government’s development agenda. For example, notable increases can be seen in the agricultural sector, whose ministry has had an allocation that is 73 per cent more than the 2013 levels. The road sector’s allocation has increased by 50 per cent while those for education and health have increased by 53 and 29 per cent, respectively. The Ministry of Community Development, Mother and Child Health’s budget has grown by 22 per cent. That is, primarily, due to large increases in programmes like the Social Cash Transfer Programme, in which the Government’s contribution has increased from K 17.5 million to 150 million in 2014.

Mr Speaker, allow me to comment on a subject that has not received considerable attention in the past. We need to remember that the Government’s money belongs to the people. Therefore, citizens have the responsibility to hold their Government to account in its use of their resources. In this regard, the proactive PF Government is creating conditions that enable citizens to participate in a meaningful way. This begins with the timely provision of information to citizens.

Mr Speaker, in conclusion, once the Budget has been approved, I urge all hon. Members of Parliament and the citizenry at large to join us in a Government-wide monitoring and evaluation of its implementation.

Mr Speaker, I thank you.{mospagebreak}

Hon. Government Members: Hear, hear!

The Minister of Agriculture and Livestock (Mr Sichinga): Thank you, Mr Speaker.

Sir, I wish to take this opportunity to thank the hon. Minister of Finance for delivering to us a Budget under the theme, “Moving Forward to Consolidate Economic Growth and Promote Social Justice in Peace and Unity”. I endorse the hon. Minister’s submission and, therefore, rise to support the progressive Motion he has moved in this House.

Sir, I am also thankful for the contribution that has already been made by the hon. Deputy …

Mr Bwalya: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Bwalya: Mr Speaker, I rise on a very serious point of order, especially that hon. Ministers are now responding to the various issues that our colleagues in the Opposition raised.

Sir, we all came here to represent the people who voted for us, and we are here at a very great expense to the taxpayers. Therefore, as we transact our Business, we should do so without being emotional, even when the decisions made do not go in our favour.

Mr Speaker, we have reached a very critical point, at which we expect those who raised issues to listen and get the answers from hon. Ministers. I appreciate that we have the right to walk out of the Assembly Chamber. However, the Business will continue as long as the quorum is maintained. So, is it in order for a good number of the Opposition hon. Members of Parliament to walk out at a time when answers to the issues that they raised during their debates are being provided, especially given that we are discussing the Budget, which will help in developing their constituencies?

I need your serious ruling.

Hon. Government Members: Hear, hear!

Mr Speaker: My ruling is that we are guided by our own internal constitution, the Standing Orders, which outline procedures for resolving grievances of this nature. I do agree that it is not only a duty to listen to your responses but, also, and more so, to represent the constituency at all times. That is the paramount duty. Regardless of how you view a particular position taken by the Speaker, you still remain a representative of the people. Otherwise, if you ask me, it is a disservice to the electorate, not to mention the taxpayer.

That is my ruling.

Hon. Minister, you may continue.

Hon. Government Members: Hear, hear! Long live the Chair!

Mr Sichinga: Mr Speaker, before the point of order was raised, I was appreciating the contributions already made by my hon. Deputy Minister responsible for Livestock and Fisheries Development yesterday. I take his debate as my own because it will help to reduce the volume of my own contribution to this debate.

Sir, I wish to dwell on the macro level because I will tackle the micro or detailed issues when we discuss our ministry’s budget.

Mr Speaker, I wish to elucidate the macro indicators regarding a possible deficit during 2013, some of which were raised in this House. I also want to touch on the issue of Government borrowing.

Sir, I have analysed the last ten years, from 2002 to 2012, comparing the Budgets with the supplementary and excess expenditures submitted to this House. The figures are available. In terms of excess expenditure, the percentages were 2.9 in 2002, 5.1 in 2003, 4.5 in 2004, 4.6 in 2007, 9.3 in 2008, 7.3 in 2009 and 14.7 in 2010, way before the PF Government got into office. It should be clear, from this analysis, that the assertion that the PF Government is over-committing the country to debt is made out of context. I will revert to this matter later. By the way, since there are running commentaries on this side, I have been a qualified accountant for forty-seven years. Therefore, I know what I am talking about.

Mr Speaker, when officially opening the Third Session of the Eleventh National Assembly, His Excellency the President emphasised the important role that the agricultural sector should play in our economic development, job creation and increased income generation among the rural population. That point was underscored by the hon. Minister of Finance in his Budget Speech. Indeed, the agricultural sector provides many opportunities for our Government to diversify the economy from copper because Zambia has a vast land, labour and water resource endowment, which offers a very high potential to excel in agricultural development. Out of Zambia’s 75 million hectares, 58 per cent or 42 million hectares is classified as arable land. Given the foregoing, it is obvious that Zambia’s potential for agricultural productivity, value addition, and the renewability of the economy is almost next to none in the Southern Africa Development Community (SADC) Region. However, potential that is not actualised does not contribute anything tangible to national growth. It is from this realisation that the PF Government seeks to do things differently in so far as agricultural development is concerned.

Sir, as a Government, we are taking a proactive approach to addressing the various challenges that have inhibited the actualisation of Zambia’s agricultural potential. We are cognisant of the existence of the following challenges in the agricultural sector:

(a) low crop and livestock production and productivity;

(b) agricultural support tailored towards a mono-crop, which is maize;

(c) high prevalence of livestock diseases, which have been mentioned by the hon. Members on your left;

(d) high post-harvest grain losses;

(e) limited value addition;

(f) a lack of assured markets coupled with poor transportation infrastructure; and

(g) inappropriate marketing legislation, specifically, with reference to the Credit and Marketing Acts.

Sir, the Government’s policy and strategic thrust is to mitigate these challenges and realise the agricultural sector’s full potential by improving crop and livestock production and productivity. Low productivity remains the major challenge to the Zambian small-holder crop and livestock farmer. So, at Nansanga, Luena and in the nine other farm blocks, most of the factors in low crop productivity are being addressed as follows:

(a) mechanisation;

(b) rural electrification; and

(c) development of irrigation infrastructure.

Sir, all these factors are the issues that the hon. Minister of Finance has very ably addressed in his Budget. In addition, the Ministry of Agriculture and Livestock is promoting a number of interventions with the support of the Budget. These include:

(a) conservation farming and other good agricultural practices;

(b) developing and releasing high-yield seed varieties;

(c) domestic production of fertiliser, through the recapitalisation of Nitrogen Chemicals of Zambia (NCZ) factory in Kafue;

(d) sourcing cheaper top-dressing fertiliser, with the help of our bilateral partners, which will contribute to the small-scale farmers’ enhanced productivity, through the Farmer Input Support Programme (FISP)  and electronic voucher (e-voucher) system programmes;

(e) allocating more funding to research and extension services in order to produce and deploy new agricultural technologies that will increase productivity; and
 
(f) promoting of rural agro dealers and agricultural business centres to improve access to high-quality agro inputs by small-scale farmers.

Mr Speaker, there are also corrective measures being effected by the PF Government. They include:

(a) livestock re-stocking with superior breeds at Mukulaikwa, Mbesuma, Kanchindu, Chishinga and Kanyama livestock breeding centres;

(b) scaling up of artificial insemination by constructing thirty additional artificial insemination centres, which are linked to the milk collection centres countrywide;

(c) promoting animal health, through the construction and rehabilitation of more than 600 dip tanks, and intensifying vaccination campaigns countrywide in 2014.

Sir, these are the issues that the hon. Members of Parliament who have walked out were supposed to be listening to.

(d) creation of livestock disease-free zones in Lusaka, the Copperbelt and Central provinces to enhance the export of Zambian beef to outside markets, including Asian markets;

(e) promoting pastures and rangeland management around the thirty milk collection centres (MCCs) to increase milk production. In fact, the hon. Minister of Finance officiated at the launch of one of the centres earlier, this year; and

(f) construction of 200 level-one and 100 level-two one-stop livestock service centres countrywide, where extension services like dipping, spraying, vaccination, artificial insemination, de-worming, branding and castration will be done.

Sir, the PF Government is prioritising crop diversification, which will be based on demand-driven promotion of crops other than maize, such as rice in the Western Province, Chama and Chambeshi in the Northern Province. The other crops are soya beans, wheat, cassava, cashew nuts, palm oil, sugar cane, sorghum, barley, groundnuts and sunflower, depending on the agro-ecological zones of the country based on soil and rainfall patterns that favour particular crops. The new approach is that the potential buyers should be identified before farmers go into production. We are carrying out soil analyses in particular locations. We are also collecting data on rainfall patterns at the district level to ensure that the programme is implemented correctly.

Sir, small-holder farmers have been disadvantaged, as far as accessing agricultural loans from commercial banks is concerned, due to a number of factors that include stigma arising from a track record of high default rates, high cost of credit, which makes it unaffordable because of the high interest rates and stringent borrowing conditions, including collateral. Some current mitigation measures include the development of monetary policies to reduce the commercial lending rates. Again, we thank the hon. Minister of Finance for undertaking this work in conjunction with the Bank of Zambia.

Sir, irrigation will be developed. We are endowed with 40 per cent of the total SADC water resource. Therefore, we have no excuse, whatsoever, for failing to utilise the irrigation potential in the country. The PF Government is seriously pursuing irrigation development programmes for both large-scale and small-holder farmers, through the development of irrigation infrastructure like dams, canals and boreholes, and promotion of related technologies, such as central pivot systems. In this case, we have a programme worth US $115 million supported by the World Bank. This money is being employed and this is why we went to Mbeza, in Namwala, to look at the possibilities of implementing the programme. I am disappointed that the hon. Member of Parliament for Namwala is not here to hear what we are doing in her constituency.

Mr Speaker, we are also collaborating with our co-operating partners in our target to bring over 15,000 hectares of land under irrigation in high potential areas, such as Nega-nega in Mazabuka, in the next three years. Unfortunately, the Member of Parliament for Mazabuka Central is also not here. The other areas are Kanakantapa in Chongwe, Lusitu in Chirundu, an area we visited with the hon. Member of Parliament, Mwamboshi in Chisamba, Lumwana-Maheba in Solwezi, Katongo-Kapala in Mpika, Nyampande in Petauke and Milosu in Mkushi. Evidently, it cannot be said that development is only being taken to one area. Clearly, development is being spread evenly throughout the country. To this effect, K621 million has been allocated to the establishment of these irrigation schemes.

Mr Muntanga interjected.

Mr Sichinga: Mr Speaker, the hon. Member of Parliament for Kalomo Central should listen because I will implement projects in his area as well.

Hon. Government Members: Hear, hear!

Mr Sichinga: Sir, over the years, the country has experienced colossal post-harvest losses of food grains and perishable fruits. In order to mitigate that, the challenge to the Government has been that of effecting measures to increase the FRA’s food storage capacity in silos and other facilities from 750,000 metric tonnes to 1.2 million metric tonnes. The hon. Minister of Finance has indicated this. Let me explain to you where they will be located.

Mr Speaker, we want the storage facilities to be covered, and I want to immediately mention that we expect to attain 2 million metric tonnes of covered storage by 2020. Currently, works are in progress to upgrade ninety-eight concrete slabs, Hon. Muntanga, Shadow Minister of Agriculture in the United Party for National Development (UPND), into covered sheds with an estimated capacity of 500,000 metric tonnes. In addition, silos will be built in Lusaka, Ndola, Kabwe, Kitwe, Chisamba and Monze. Too bad that the hon. Member of Parliament for Monze Central is not in the House. The Government is also upgrading and rehabilitating facilities to create another 112,500 metric tonnes of storage capacity. New silos will also be constructed in Kalomo, your constituency, Hon. Muntanga. So, you and your colleagues in the UPND cannot complain that the Government is not taking development to your areas. We will do the same in Kaoma, hon. Member of Parliament …

Mr Muntanga: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Muntanga: Mr Speaker, I am sitting here, listening to the hon. Minister’s theatrical debate. However, is he in order to talk about a silo to be built in Monze, when it is already there and only needs to be repaired and, then, jump to talking about a non-existent silo in Kalomo, and expect me to smile about it? Is the hon. Minister in order to drag me into his debate?

I need your serious ruling, Sir.

Mr Speaker: My ruling is: Hon. Minister, just address the Speaker. Debate without reference to hon. Members, both those who are present and those who have elected to be absent.

Continue but, please, just focus on your debate and take into account the factual inconsistencies raised in the point of order.

Mr Sichinga: Mr Speaker, before the point of order was raised, I was saying that the Government would raise the country’s storage capacity by 112,500 metric tonnes by upgrading and renovating existing facilities and that new grain silos would be constructed at Kalomo, Kaoma, Chinsali, Mansa, Mufumbwe and Petauke to create an additional 225,000 metric tonnes of storage capacity. We are talking about 2014 but, since we are not yet in that year, it is not possible for these structures to be there. Suffice it to say that they will be constructed.

Mr Speaker, thirdly, we are creating ready markets for agricultural commodities. Some of the programmes that the PF Government is implementing to create ready markets for small-holder farmers are the promotion of contract farming, through outgrower schemes, and linking small-scale farmers with agro-processers.

Mr Speaker, in order to support the Ministry of Agriculture and Livestock, a budget for its programmes in 2014, which covers 561 …

Ms Imenda: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Ms Imenda: Mr Speaker, the hon. Minister has gone around the country telling people many things, but I have not heard him say anything about fruit processing, especially for cashew nuts and mangoes, in the Western Province. We have also not heard him link this with the clusters that he used to talk about.

Is he in order not to connect these issues?

Laughter

Mr Speaker: First and foremost, the hon. Minister has not finished debating. Secondly, I have repeatedly ruled that we should not suggest the content of any hon. Member’s debate. These are largely highlights. Even, for argument’s sake, assuming those issues were omitted, the hon. Minister has just carefully and, on his own volition, decided what to highlight.

Continue, hon. Minister.

Mr Sichinga: Sir, I appreciate your ruling. I indicated, in my opening remarks, that, today, I would cover only the macro level of agriculture. ‘Macro’ refers to the bigger picture. When we discuss the ministry’s budget, I will go to the micro level and cover the issues raised by my colleague.

Sir, in order to support the ministry in 2014, we have a budget that covers 561 pages, from pages 1023 to 1584, and the budget has been …

Mr Ng’onga: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Ng’onga: Mr Speaker, thank you for according me the opportunity to rise on this serious and important point of order, which is in national interest. I apologise to the hon. Minister on the Floor.

Sir, the hon. Minister of Agriculture and Livestock has worked very hard to secure Compound D and Urea fertiliser, some of which has even arrived in the districts as we speak. However, to date, there has been no order for agricultural seed. No seed has moved out of Lusaka to any of the district centres, yet it is 31st October, 2013. In Kaputa, the rains have already started falling, and I know that it is also raining in most parts of the Northern Province. Therefore, is the hon. Minister of Agriculture and Livestock in order, to date, not to have secured enough funds to take seed to where it is needed to avoid other serious problems next year?

Hon. Opposition Members: Hear, hear!

Mr Speaker: My ruling is that I have approved a request by the hon. Minister to issue a statement that will cover, among other matters, the subject of that point of order. That statement will be issued early next week. So, please, wait for that comprehensive statement and engage him afterwards, if you will still need clarification.

Continue, hon. Minister.

Mr Sichinga: Mr Speaker, I am much obliged.

Mr Speaker, the ministerial budget has been raised by 73 per cent, from this year’s K1.745 billion to K3.031 billion. Of that budget, K1.575 billion, representing 52 per cent, is meant for poverty reduction. So, we are addressing the needs of the people. While the amount does not cover all our requirements, including the provision of seed, and a lot more is required to support our programmes, it will go a long way in enabling the ministry to increase its support to the agricultural sector. It is my sincere hope that we will improve on the speed at which we deliver inputs to our farmers.

Sir, the hon. Minister of Finance has repeatedly re-affirmed his deep appreciation of, and total commitment to, the speedy development of a diversified agricultural sector. If the country failed to produce food, it would also fail to sustain the livelihoods of its 14 million people and reduce poverty levels in the country. The Budget we have before us goes a long way in preventing that. The prospect of hunger in the country, after it has attained some impressive agricultural production results, is much too ghastly to contemplate. Therefore, I have no doubt in my mind that, given the commitment of the hon. Minister of Finance, he will not fail to provide adequate resources at the right time and in a manner that enables our ministry to execute its life-sustaining mandate in a robust manner. With a common purpose, a concerted effort and the full support of the hon. Members of this House in approving the Budget, we stand in good stead to turn the agricultural sector into a true engine for economic growth. That can be realised if we work together towards scaling up the implementation of programmes and strategies that I have highlighted above rather than passing running commentaries as I speak. A successful implementation of these programmes will increase incomes for the rural populations, enhance household food security and, ultimately, reduce poverty among our people.

Mr Speaker, it is not a given that we will have this Budget. However, from my understanding of economics and how budgets work, this is a balancing act. I have not got everything I needed, neither has anybody else. The hon. Minister of Finance is looking for additional resources because we have an income deficit. That is important for us to appreciate. Economic development is not an event, but an infinitely continuous process. It is good that this has been acknowledged by some of the earlier debaters. Therefore, our contribution to Zambia is, obviously, dependent on the funding we get, and we are quite satisfied that what we have got will take us farther than what we got last year. The capital expenditures that are being provided will be helpful to the agricultural sector in ensuring that what we produce can reach the markets.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

The Minister of Commerce, Trade and Industry (Mr Chenda): Mr Speaker, I thank you for giving me this opportunity to add my voice to the 2014 Budget policy debate. Let me start by congratulating my counterpart, the hon. Minister of Finance, on a well-articulated Budget Speech.

Sir, the theme of the Budget, “Moving Forward to Consolidate Growth and Social Justice in Peace and Unity”, effectively captures the mindset of the PF Government in terms of our fiscal policy focus over the medium term. The country’s macro-economic performance, as articulated in the Budget Speech, has been well above average. We seek to consolidate these gains so that the resources generated can be channelled to the cause of social justice and growth. We are targeting growth in jobs and wealth. This theme is outlined in every section of the Budget Speech.

Mr Speaker, a lot has been said during the policy debate, and one of the recurring themes has been the questions over the number of jobs and the realism of our job-creation projections. It does not come as a surprise to me that we have some ‘doubting Thomases’ in our midst. We live in an economy in which people had become accustomed to marginal average annual job-creation rates of 3 per cent. The idea that our economic policy can and will deliver higher annual job-creation rates of around 200,000 can easily be mistaken for political rhetoric. However, the difference with the PF Government is that it is under no illusion about the reasons it is in office. I know that the people out there want us to deliver jobs. Therefore, everything we do is about creating wealth and jobs. The President, in his Speech to this House, was very categorical in stating that creating jobs was our first priority.

Hon. Government Members: Hear, hear!

Mr Chenda: Mr Speaker, hon. Members of this House are now debating a projected number of jobs to be created because this Government dares to give itself ambitious, yet realistic, targets. In the history of this country, we are the first Government to take such a bold step, and we should be commended for it. Our confidence is derived from the fact that our policies are targeted at making the citizen a key player in the economy rather than a spectator.

Hon. Government Members: Hear, hear!

Mr Chenda: Mr Speaker, Zambia’s projected gross domestic product (GDP) growth of 7 per cent is even higher than the regional projection of 5.5 per cent, and is the result of judicious, sound and far-sighted policy-making by this Government. We are running this economy on a rational approach focussed on creating an environment that is conducive to doing business. You will see, from the structure of our Budget, that, in allocating expenditure, we are also answering the question of how these jobs will be created. The Government has clearly stated where and how it expects jobs to be created. We are addressing constraints to growth, such as inadequate infrastructure, through the construction and rehabilitation of roads and rail facilities nationwide. We are addressing illiteracy, through a school development programme targeting both urban and rural populations. We are also empowering our people with skills, through university and college development programmes.

Sir, the hon. Minister of Finance has informed this House that the Government released K106.9 million to the Development Bank of Zambia (DBZ) to support the financial needs of industry, particularly the small and medium enterprises (SMEs). Rural enterprises have also benefitted from the resumption of funding by the Citizen Economic Empowerment Commission (CEEC). Clearly, we mean what we say. Rather than urge the financial sector to lend to SMEs, we have provided the money to be made available to them.

Mr Speaker, for many years, we talked about restoring economic activities in Kafue by reviving the NCZ, but nothing was ever done. By September, this year, however, the NCZ had produced over 70,000 metric tonnes of Compound-D Ffertiliser, and the value chain created by the revitalisation of the plant is creating jobs and boosting economic activity in the district and surrounding areas.

Mr Speaker, the Government launched the Link Zambia 8,000 Project and, as reported by the hon. Minister of Finance, we are already rehabilitating or constructing 1,500km of road network. Roads that, for years, were used merely for gaining political mileage, such as the Mongu/Kalabo, Kalabo/Sikongo, Sikongo/Angola Border, Kasama/Mporokoso/Kaputa, Mbala/Nakonde, Mansa/Luwingu, Chipata/Chadiza/Katete, Chama/Matumbo, Isoka/Muyombe/Chama and the Bottom Road, from Munyumbwe to Changa, are now actually being worked on.

Hon. Opposition Members: Question!

Mr Chenda: Mr Speaker, rather than complaining about the energy deficit in the country, we are confident of bringing an additional 590mw of power on-stream to support our industrialisation agenda.

Mr Miyutu: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Miyutu: Mr Speaker, I have been listening attentively to the debate by the hon. Minister, and I am quite touched by the mention of the Kalabo/Sikongo Road as one on which works are in progress. However, that is only true if he is talking about a Kalabo/Sikongo Road in another province, not the Western Province.

Sir, is the hon. Minister in order to say that the Kalabo/Sikongo Road, which is in a deplorable state and has not been worked on, is being worked on? Is he in order to mislead the people of Zambia by saying that there is something happening on that road?

I need your serious ruling.

Hon. Opposition Members: Hear, hear!

Mr Speaker: Hon. Minister, as you continue with your debate, please, clarify that matter.

Mr Chenda: Mr Speaker, the hon. Member of Parliament for Kalabo Central may seek comfort in the fact that this road will be worked on. The Government has committed itself to working on it.

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

Mr Chenda: Mr Speaker, we are not just talking, but also working systematically and delivering on our promises. It is these bold steps we are taking to address constraints that give us the confidence that we shall deliver. The reality is that you cannot attain growth without addressing the challenges that constrain people from seeing, creating and taking advantage of the opportunities in the economy. The impact of the 7 per cent average annual GDP growth on the people should be significant. However, we all know that too many of our people continue to struggle to meet basic needs. By investing in the creation of capacity for growth in our provinces and people, we are empowering them to take the driving seat in the development of their country. Development is only sustainable when it is relevant to the average citizen. One can only say that a country is developing when women can innovate and establish income-generating ventures, and the youth can acquire skills and get jobs after graduating or, perhaps, become employers of their fellow youths.

Mr Speaker, the growth of this country requires high inflows of foreign direct investment (FDI). Even as we target it, however, it is not enough for us to receive this FDI.

Mr Sikazwe: On a point of order, Sir.

Mr Speaker: A point of order, is raised.

Mr Sikazwe: Mr Speaker, thank you very much for giving me this opportunity to raise a point of order. I sincerely apologise to the hon. Minister, who was debating very well, for disturbing his debate.

Sir, I am getting concerned. Is Hon. Nkombo in order to trick hon. MMD Members into walking out of the Assembly Chamber only for him to sneak back in?

I need your serious ruling.

Hon. Government Members: Hear, hear!

Mr Speaker: Those issues are beyond me. It is up to the participants in the walkout to decide.

Hon. Minister, you may continue.

Mr Chenda: Mr Speaker, FDI inflows have not translated into significant reductions in poverty for the majority of Zambians. We want the FDI to be relevant to the local entrepreneur, through business linkages, up and down the value chain created by the investment.

Mr Nkombo: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Nkombo: Mr Speaker, I know that you have ruled several times that points of order must be raised contemporaneously.

Laughter

Mr Nkombo: Sir, I was trying to reconcile the hon. Minister’s statements and thought of rising on this point of order while he is still on the Floor.

Sir, this House is guided by Cap 12 of the Laws of Zambia, which extends immunities and privileges to any witness or hon. Member submitting on the Floor of this House, for as long as what they are submitting is the truth and nothing other than the truth. In reaction to the point of order that was raised by the hon. Member of Parliament for Kalabo Central, on the hon. Minister’s statement that the Kalabo/Sikongo Road was a work-in-progress, the hon. Minister said that it was a work-in-anticipation. Is he in order to continue being inconsistent, against the provisions of Cap 12 of the Laws of Zambia? Further, would it not be prudent to cite him for breaching the provisions of Cap 12? Would he not consider being as honesty as his brother here, Hon. Wynter Kabimba, SC., whom we are about to give a medal for honesty in terms of how he sees things in his Government?

Mr Speaker: My ruling is that the hon. Minister made a statement in relation to the project in question. When the point of order was raised, I gave the hon. Minister the opportunity to clarify. As far as I am concerned, he clarified things. Therefore, I am not able, for now, to effect the kind of reconciliation that you speak of. However, whatever the case, I still take it that the clarification superseded the prior statement.

May the hon. Minister continue, please.

Mr Chenda: Mr Speaker, we want the FDI to be relevant to the citizens by creating jobs for them. Our approach in ensuring that focuses on mutual benefit between foreign investors and local entrepreneurs. Our desire is a win-win situation. That is why we are rationalising the tax incentives regime of our country. We do not want to create an unbalanced business environment that favours those with United States Dollars against those with the Kwacha. Our policies are focused on making Zambian-owned companies competitive. We want Zambians to learn to compete and dominate the region.

Mr Speaker, the reason mining companies and other large-scale investors should buy from the local companies is that it makes economic sense to the country. When they buy local, they create jobs and wealth in our country. We have no desire to export jobs. We want them kept in …

Mr Speaker: Order!

Business was suspended from 1615 hours until 1630 hours.

[MR SPEAKER in the Chair]

Mr Chenda: Mr Speaker, before business was suspended, I was stating the reason mining companies and other large-scale investors should buy from local companies. Equally important is the fact that it must make business sense to the mining companies and other large investors for them to buy local because that would require the quality of Zambian products to be competitive. The products would have to be of good quality and affordable price, and meet the buyers’ specifications. Our programmes, therefore, target those elements, through increased access to finance, so that local businesses can borrow at low rates, improved road and rail networks so that the local businessmen can transport goods at low cost and low regulatory costs so that the local businesses can operate in a low-cost business environment.

Mr Speaker, to enable our people to effectively tap into the potential for growth occasioned by investment in agriculture, tourism and manufacturing, the Government has programmes addressing the business environment. Sustainable jobs will be created only when there is increased local productivity. For the manufacturing sector, the Government will continue to invest in the Multi-Facility Economic Zones (MFEZs). The localisation of fiscal incentives in the urban areas in the MFEZs will, undoubtedly, increase …

Interruptions

Mr Speaker: Order, on the left!

Mr Chenda: Mr Speaker, the localisation of fiscal incentives in the urban areas in the MFEZs …

Mr Mweetwa: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Mweetwa: Mr Speaker, I thank you for giving me the opportunity to raise this point of order, which I consider to be very important. It borders on the procedures and traditions that govern the conduct of business in this House.

Sir, the traditions of this House, by and large, arise from the rulings of the Hon. Mr Speaker, which become precedents that, later, customise themselves as part of the governing laws of the House. That said, is this House in order to entertain double standards and ignore its own precedents without nullifying them so that they no longer serve as platforms from which to draw the direction of its proceedings? I ask this because this House, a year or two ago, following a point of order that, if my memory serves me well, was raised by the hon. Deputy Minister of Home Affairs, Mr Chilangwa, on whether Former President, Mr Rupiah Banda, was in order, in accordance with the Former Presidents’ Benefits Act, to continue enjoying the benefits prescribed in that piece of legislation when he was still involved in active politics, as President of the MMD.

Mr Speaker, this House has a ruling on record in which the Hon. Mr Speaker ably and aptly interpreted the Former Presidents’ Benefits Act and, immediately, that caused Mr Rupiah Banda to cease to be the President of the MMD in order to continue receiving his benefits.

Further, Sir, when debating the lifting of the immunity of Former President, Mr Rupiah Banda, objections and points of order were made and raised by hon. Members on your left, who contended that the matter was before the courts of law and, therefore, this House could not debate it. The ruling was that this House enjoyed unique powers in relation to proceedings on the Floor of this House. As elected representatives of the people, here gathered, who swore to uphold, protect and defend the Constitution of this Republic, lately, we have raised points of order that border on the interpretation of the law by this House. Without nullifying the precedent of interpreting the Former Presidents’ Benefits Act, this House has referred such matters to the Judiciary.

Sir, is this House in order to entertain double standards?

Hon. Opposition Members: Hear, hear!

Mr Speaker: My ruling is short, and it is that the ruling is reserved.

Hon. Government Members: Hear, hear!

Mr Chenda: Mr Speaker, before the interruption, I was saying that, for the manufacturing sector, the localisation of fiscal incentives in the urban areas in the MFEZs would, undoubtedly, increase the attractiveness of those facilities.

Mr Speaker, the MFEZs and industrial parks must be supported, as they will contribute to job creation, enhance our diversification efforts, increase our production levels and support growth in exports to the region and beyond. We will continue to encourage many investors to take advantage of these facilities and invest in them.

Sir, the Government will continue to provide a policy, legislative and regulatory environment conducive for private sector-led growth. We are actively exploring the use of a regulatory impact analysis as a tool to understand the unseen or unintended impacts of policy decisions so as to inform the policy-making process.

Mr Speaker, we believe in making good regulations for business and want regulations that focus on health, the environment and safety, rather than regulating for mere control or revenue purposes. This will include the continuation of business registration and licensing reforms. We will also continue to engage the private sector because it is an important partner in development.

Sir, as the hon. Minister of Finance stated, decentralisation is a practical demonstration of the Government’s commitment to enhancing citizen participation in local governance, development and service delivery. Every district we have created is a hub of industrial activity and job creation. In the last two years, the Government has created thirty new districts, of which eighteen are already functional. A new district requires roads, electricity, an airport or airstrip, a bank and a functioning Public Service to facilitate economic activity. More importantly, a new district means creating opportunities for wealth and job creation.

Interruptions

Mr Speaker: Order, on the left!

Mr Chenda: A new district means more power to the people to define their own destiny.

Mr Speaker, in winding up my debate, I wish to state that this is an action-orientated Government. We are determined to develop our country, as demonstrated by the way in which we are allocating and utilising national resources. In every sector with potential to impact on development, we are making progress.

Mr L. J. Ngoma and Mr Miyutu rose on points of order.

Mr Speaker: A point of order is raised.

Hon. Members: Which one?

Mr Speaker: The hon. Member for Sinda.

Mr L. J. Ngoma: Mr Speaker, I am grateful to have caught your eye.

Mr Speaker, listening attentively to the Minister of Commerce, Trade and Industry, Hon. Chenda, talk about development in the new districts has caused me to rise on this very serious point of order.

Sir, not long ago, on the Floor of this House, we were informed that new districts, such as Sinda, through the agreement entered into by His Excellency the Republican President, Mr Michael Chilufya Sata, and former hon. Member for Mkaika, Mr David Phiri, developmental projects would be suspended. Is the hon. Member in order to mislead this House that developmental projects will continue in new districts when the Executive is busy suspending them behind closed doors with impunity?

I seek your serious ruling.

Hon. Opposition Members: Hear, hear!

Mr Speaker: My ruling is that I do not think that it is fair and proper, in the context of the debate, to link what the hon. Member for Sinda has said with the debate of the hon. Minister of Commerce, Trade and Industry. You cannot make that nexus. He is debating as the hon. Minister of Commerce, Trade and Industry and, so far, there is no basis on which I can rule him out of order.

Continue, hon. Minister.

Mr Chenda: Mr Speaker, we, as a Government, look forward …

Mr Mbewe: Mr Speaker, on a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr Mbewe: Mr Speaker, I only rise on points of order when compelled, and this one is very compelling.

Sir, is Hon. Col. Panji Kaunda in order to wear a torn wig and sit in a wrong place, instead of sitting with his friends in the Front Bench? Those who wear wigs sit in front.

Laughter

Mr Speaker: My ruling is that you should have consulted him on the design of the wig …

Laughter

Mr Speaker: … before classifying it as torn. 

The hon. Minister may continue.

Laughter

Mr Chenda: Mr Speaker, as a Government, we look forward to the co-operation and support of hon. Members of this House in approving the 2014 Budget. We need to work together to develop this country. There will be enough time for politics later. A developed Zambia is good for all of us and those whom we lead.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Speaker: The hon. Minister of Chiefs and Traditional Affairs.

Hon. Opposition Members: Ngoshe!

The Minister of Chiefs and Traditional Affairs (Prof. Luo): It is a great name …

Laughter

Prof. Luo: … and it is, indeed, a name I will enjoy having for many years, until I die.

Mr Speaker, thank you very much for giving me the opportunity to add to the many voices that have congratulated the hon. Minister of Finance, Mr Alexander Bwalya Chikwanda, …

Mr Livune: Question!

Prof. Luo: … on his well-structured and well-thought-out Budget, which has focused on Zambians’ aspiration and desire for the development that they have been denied for many years.

Mr Speaker, in contributing to the debate on the 2014 National Budget, I want to reflect on some of the issues that were raised by the hon. Member of Parliament for Chipata Central, who questioned the relevance of the Ministry of Chiefs and Traditional Affairs. Without interrogating and analysing what he was saying, he went ahead to suggest that the ministry should be re-visited. In spite of the point of order that was raised by Hon. Kawandami, who reminded the hon. Member that the ministry had been approved by this august House after its noble creation by the President, the hon. Member insisted that the ministry should be re-visited. Seeing as the hon. Member of Parliament might have been seeking education on the functions and relevance of the ministry, I feel compelled to spend some time this afternoon on providing some information that might help, not only the hon. Members of Parliament present, but also the nation as a whole on the relevance of the Ministry of Chiefs and Traditional Affairs.

Mr Speaker, people in progressive countries do not focus on the name, but the portfolio content of a ministry. I will come back to this in a minute. I also want to refer to what was said by the hon. Member for Mbala about the lack of thought and investment in the development of the important sites that can attract tourism to the Northern Circuit. Allow me, therefore, to raise some issues that will substantiate the importance and need for us to recognise the Ministry of Chiefs and Traditional Affairs. I will provide more information during the policy debate on my ministry.

Sir, the institution of chieftaincy is as old as humanity in Africa. Its existence can be seen in other societies beyond our continent, as recorded in the Bible and the histories of European societies. Many of the great stories of development engender the successful tutelage of chiefs or kingdoms in various societies the world over.

Prof. Lungwangwa: On a point of order, Mr Speaker.

Mr Speaker: A point of order is raised.

Prof. Lungwangwa: Mr Speaker, thank you for granting me this point of order.

Sir, you have ruled, very clearly, that the debate on the Budget, whether it is from the left or the right, must be closer to the themes of the Budget. Since the hon. Minister of Chiefs and Traditional Affairs started debating, I have been browsing through the Budget Speech, but there is no reference to chiefs and traditional affairs as a theme.

Hon. Opposition Members: Hear, hear!

Prof. Lungwangwa: Mr Speaker, is the hon. Minister in order to go against your clear ruling on the need to stick to the themes in the Budget? Is she in order to take us through this elaborate defence of her ministry, which has no bearing on the Budget, as a theme?

I need your serious ruling.

Hon. Opposition Members: Hear, hear!

Mr Speaker: Hon. Members will recall that these issues were raised by other hon. Members of the House. This is the opportunity for the hon. Minister to respond. You will note that I was quite liberal yesterday and the previous day and allowed my colleagues on the right to also respond to specific issues that had been raised by the hon. Members on the left. That notwithstanding, we all need to bear in mind that there is a specific Motion. I have stated this before, and I will reiterate it. It was only yesterday that I indicated that our colleagues on the right, more than anything else, should augment the sterling efforts of the hon. Minister of Finance. This was my appeal yesterday, and continues to be today.

Hon. Government Members: Hear, hear!

Mr Speaker: The hon. Minister may continue.

Prof. Luo: Mr Speaker, that point of order justifies my decision to explain the importance of my ministry. I would like my colleagues in this august House to know that the Ministry of Chiefs and Traditional Affairs is important and interfaces with all the other ministries in this country.

Hon. PF Members: Yes.

Mr Sikazwe: That is right.

Prof. Luo: Most importantly, it is the ministry that will bring about rural development. So, I beg the hon. Members to keep quiet and listen to the Professor at work.

Hon. Members: Hear, hear!

Mr Livune: Question!

Laughter

Mr Speaker: Are they questioning the Professorship?

Laughter

Prof. Luo: Mr Speaker, …

Mr L. Ngoma: On a point of order, Sir.

Interruptions

Prof. Luo: Mr Speaker, the PF Government, led by His Excellency the President, Mr Michael Chilufya Sata, created the Ministry of Chiefs and Traditional Affairs in recognition of the cardinal role that the traditional authorities play in our society.

Mr Sikazwe: That is right.

Prof. Luo: Mr Speaker, at Independence, like many other African countries, Zambia was at the crossroads regarding the fate of traditional institutions. I think that it is good that they were maintained.

Mr Speaker, let me remind the hon. Members of Parliament that, during the colonial times, development revolved around the chiefs. Hon. Muntanga will recall that this is why headmen are called ‘simabbuku’ in the Southern Province.

Laughter

Prof. Luo: They were …

Mr Muntanga: On a point of order, Sir.

Mr Speaker: A point of Order is raised.

Mr Muntanga: Mr Speaker, is the hon. Minister of Chiefs, Traditional Affairs and Witchcraft …

Hon. PF Members: Aah!

Mr Muntanga: … in order to drag me into her debate about ‘simabbuku’, whatever that means, instead of her telling us what her ministry’s planned programmes in the Budget are? She should not lecture to us about ‘basimabbuku’, a term whose meaning she might not even understand.

I need your serious ruling, Sir.

Mr Speaker: Hon. Minister of Chiefs and Traditional Affairs, please, keep the hon. Member out of your debate, at least, in his individual capacity, so that we make progress.

Continue.

Prof. Luo: Nka kulowa ing’ongo.

Laughter

Prof. Luo: Mr Speaker, in the pre-colonial days, chiefs collected statistics, ensured food security and cleared roads. These are some of the things that we, as a ministry, are trying to participate in.

Mr Speaker, let me focus on the issues that were raised. The lack of development in the Northern Circuit, for example, – and I will spend a lot of time talking about rural development later – through the National Heritage Conservation Commission (NHCC), which falls under our jurisdiction, we have invested in the development of the Kalambo Falls and the source of the Zambezi River. These are two of the many projects mentioned in the Budget Speech. I also want to mention that, apart from the source of the Zambezi River and the Kalambo Falls, we have worked on the Chishimba Falls, Kundalila Falls, Ntumbachushi Falls, David Livingstone Memorial and the Kifuba National Monument. In the other parts of the country, we are opening up the Mulobezi Open Air Museum, Ing’ombe ‘Ilende’ National Monument in Chirundu …

Mr Livune: Question!

Mr Sikazwe: That is right.

Prof. Luo: … and Chinyunyu Hot Springs, and have continued with the works at the Victoria Falls. The work involves the construction of totally new infrastructure, where it did not exist, and upgrading it, where it existed with lower standards. We have even gone out of our way to raise extra-Budgetary funds. We are also working with the Liverpool School in carrying out excavations on the Kalambo Falls Archaeological Site and intend to put up trails to attract tourism to the site because Kalambo Falls is associated with the evolution of man. You can now decide whether this ministry is not relevant.

Mr Sikazwe: That is right.

Prof. Luo: Mr Speaker, we have constructed ablution blocks, visitors’ information centres, ticket offices, fencing and walking trails, and sunk boreholes and installed water tanks where they did not exist. Of interest to the hon. Member of Parliament for Mbala is that, through the RDA, we are working on the road to Kalambo Falls. We are also working on the road to the other waterfalls in Mporokoso, the Kalumangwe and Kabulubulwe falls. We also intend to do more in terms of establishing historical cultural museums by working with the Liverpool School in Mambwe District. We are also having discussions with some of the mining companies on our intention to set up a mining museum in Kabwe. So, we are not only concentrating on Livingstone or the Mosi-o-Tunya Falls. We think big, and will walk the talk.

Mr Speaker, regarding development in the rural areas, it is not the name of the relevant ministry that delivers. In fact, in this country, we spend too much energy on titles. Sometimes, we say that we do not want one person to be called a head of department, let him or her be called a director; or we do not want somebody to be called a co-ordinator, let him be an executive director.

Brig-Gen. Dr Chituwo: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Brig-Gen. Dr Chituwo: Mr Speaker, is the hon. Minister of Chiefs and Traditional Affairs in order to condemn the fact that we spend too much time on titles when she propagates the practice a lot? She is on record promoting it by demanding to be addressed by her title of Professor. Is she in order to mislead this important House and the nation?

I need your serious ruling, Sir.

Mr Speaker: My ruling is that I will request the hon. Minister of Chiefs and Traditional Affairs to clarify that position in due course.

Continue, hon. Minister.

Prof. Luo: Mr Speaker, I am referring to titles that people have not worked for.

Hon. PF Members: Hear, hear!

Prof. Luo: The title of Professor is one that you have to work for.

Sir, we spend too much time giving ourselves titles like Executive Director when there is minimal productivity. My Government recognises chiefs as important partners, and working closely with them on developmental activities identified by them is one of our top priorities.

Mr Speaker, my ministry has chosen to focus on the promotion of the cottage industry in our chiefdoms. Our dream is to change rural Zambia using the natural resources found within the chiefdoms. We have been promoting, at least, three to five industries in every chiefdom. This approach is aimed at facilitating job creation, poverty reduction and rural development. My hon. Colleagues may know, through reading and exposure, that Japan, Israel and India were developed using the One Village, One Industry Model. This is the approach that we are using.

Mr Speaker, out of 288 chiefdoms, twenty-nine have already submitted the economic activities that they would like to engage in, some of which hinge on value-addition. My ministry has, therefore, gone round forming development committees, and mobilising and sensitising chiefs, their subjects and those who will oversee the developmental projects. The identified activities mainly revolve around animal husbandry, crop and fish farming, poultry and bee-keeping. The ministry has just completed processing the requests for support from chiefdoms. Our resources have come from the 2012/2013 Budget. However, we have also approached the private sector and co-operating partners to support some of our activities. We are also having discussions with investors and promoters of the cottage industry.

Sir, the ministry has sensitised chiefdoms on sustainable resource utilisation, entrepreneurship, innovation and creativity. Next year, we hope to see more products related to natural resource preservation and processing of indigenous foods from our chiefdoms, such as mushrooms, caterpillars, traditional vegetables and fruits, and water. We have started these activities with the support of United Nations High Commission for Refugees (UNHCR). We have started fish-farming activities in Chief Mumena’s Chiefdom and poultry-farming in Chief Mutondo. We are also establishing a poultry farm and constructing a school that will train people in cottage-making in Chief Matebo’s Chiefdom.

Mr Speaker, with the support of the Chinese Government, value-addition equipment has been purchased, delivered and launched in Chief Nalubamba’s area. The equipment includes a tractor, tipping trailer, planter, disc plough, harvester, maize sheller, a milling unit with a portable sewing machine and 50kg empty mealie-meal bags ready for the market. We also delivered 175,000kg of seed during the launch. Contrary to the assertion by the hon. Member of Parliament for Namwala that the equipment delivered was second-hand, this ministry does not deliver second-hand machines because it is headed by resourceful people. This equipment was brand new. {mospagebreak}

Mr Sikazwe: That is right!

Prof. Luo: Mr Speaker, because we know that this is an innovation in the country, we have arranged visits for our chiefs to countries where similar programmes are being implemented for them to be exposed. To that effect, we took eight chiefs to Namibia to learn how their fellow chiefs are participating in developmental activities and what structures are necessary for the successful implementation of the activities. One of our chiefs was sent to England to participate in a partnership forum, whose major focus was on development using resources available in the chiefdoms.

Hon. Government Members: Hear, hear!

Prof. Luo: Furthermore, four chiefs travelled to Ghana to learn from the Ghanaian model of chiefs’ role in development, which is one of the most successful in the world. We were able to see how chiefs set up big plantations of palm trees with huge factories in the middle that process oil and soap, and even make brooms. We hope to do the same in Zambia in one or more chiefdoms.

Mr Speaker, in two weeks, seven chiefs will travel to China to learn how to use cottage-making equipment. We have more exposure activities planned for our chiefs to understand the importance of their role in national economic development.

Mr Speaker, my ministry, in conjunction with the RDA and other relevant Government departments, has embarked on a programme aimed at opening up chiefdoms and improving road infrastructure to facilitate easy transportation of farm products. Furthermore, it will create jobs. We have even gone into discussions with the RDA for the chiefdoms to participate in the maintenance of roads and clearing of road drainages. 

Mr Speaker, my ministry, in collaboration with the Ministry of Mines, Energy and Water Development …

Mr L. J. Ngoma: On a point of order, Sir.

Mr Speaker: A point of order is raised.

Mr L. J. Ngoma: Mr Speaker, I thank you for giving me the opportunity to raise another point of order, which borders on the freedom of assembly, movement and association of hon. Members of this House, which, to me, is of national interest.

Mr Speaker, I have been listening attentively to the hon. Minister of Chiefs and Traditional Affairs, but I am surprised that, although her time is coming to an end, she appears unwilling to indicate that chiefs should let hon. Members of Parliament move and interact freely with their constituents in this country. Allow me to quote from an article in The Post Newspaper of 26th October, 2013, headlined, “Madzimawe Bans Kalima from Conducting Meetings.”

Hon. Opposition Members: Aah!

Mr L. J. Ngoma: Mr Speaker, the article reads:

“Chief Madzimawe of the Ngoni people in Chipata has banned Kasenengwa MMD Member of Parliament, Victoria Kalima, from holding meetings in the chiefdom which is part of the constituency.”

Mr Speaker, the article goes on as follows:

“Chief Madzimawe said that every time Kalima speaks in Parliament, she does not talk about Kasenengwa, but condemns the Government.”

Sir,, is the hon. Minister of Chiefs and Traditional Affairs in order not to inform Chief Madzimawe, even through this House, that hon. Members of Parliament are free to interact with their constituents, and that it is wrong for chiefs to involve themselves in such activities?

Mr Speaker, I seek your serious ruling.

Mr L. J. Ngoma laid the paper on the Table.

Hon. Opposition Members: Hear, hear!

Mr Speaker: My ruling is that, if you want to establish the position of the hon. Minister of Chiefs and Traditional Affairs on the subject of your point of order, the easiest, most convenient and appropriate thing to do is to file a question to her. I do not want to talk about the Constitution because I have reserved a ruling on another point of order related to that. I will address those issues in the ruling.

Hon. Minister, continue.

Prof. Luo: Mr Speaker, it is my hope that hon. Members of Parliament have benefited from the elementary brief that I have shared with them. I invite them to the ministry for more information so that they appreciate the role of this great ministry in the development of this country.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

The Minister of Local Government and Housing (Mrs Kabanshi): Mr Speaker, I thank you for giving me this opportunity to contribute to the 2014 Budget Address by the hon. Minister of Finance, Mr Alexander Chikwanda, MP, to this august House on Friday, 11th October, 2013. The 2014 Budget address theme, “Moving Forward to Consolidate Growth and Social Justice in Peace and Unity”, aptly describes the PF Government’s commitment to inclusive development. This commitment is demonstrated by the revision, adoption and launch of the National Decentralisation Policy, which seeks to promote inclusive and participatory planning and budgeting by local communities.

Sir, it is because the PF Government believes in moving forward to consolidate growth and social justice in peace and unity that, for the first time in Zambia, the African Day on Decentralisation, Local Governance and Local Development was commemorated on 10th August, 2013. We, as a Government, want to empower local communities because they are best-suited to identify their needs and challenges. Our policy is to support a people-centred and people-driven development process, through decentralisation. To demonstrate our commitment, we are taking the power and resources to the lower organs from the Central Government. The 2014 National Budget speaks for itself. A total of K626.6 million has been allocated to grants to local authorities while K550 million has been allocated for infrastructure development in the newly-created districts, including Sinda.

Mr L. J. Ngoma: Aah! No.

Hon. Government Members: Hear, hear!

Mrs Kabanshi: Everybody will benefit from that, Mr Speaker.

Sir, the allocations I talked about are in addition to the K661 million allocated to housing and social amenities, which includes K417.8 million for improving water supply and sanitation. The allocations will contribute to improved delivery of municipal services, such as clean and safe drinking water, better sanitation, improved urban and feeder roads, markets and bus stations.

Mr Speaker, there is no better way of moving forward to consolidated growth and social justice in peace and unity than investing in basic services that will be accessible to everyone without any form of discrimination.

Mr Speaker, in this year’s Budget, K210 million has been allocated to the CDF, and my ministry has drafted a Constituency Development Fund Bill for consideration by the Cabinet. We want to make the distribution and utilisation of the CDF more responsive to the needs of the local communities.

Hon. Government Members: Hear, hear!

Mrs Kabanshi: Mr Speaker, it is neither the policy nor the intention of the PF Government to discriminate anybody or any section of society in the disbursement of the CDF.

Hon. Opposition Members: Question!

Hon. Government Members: Hear, hear!

Mrs Kabanshi: Our development is inclusive because His Excellency the President, Mr Michael Chilufya Sata, said that he would rule this country on the basis of the Ten Commandments.

Hon. Opposition Members: Question!

Mrs Kabanshi: Mr Speaker, I, therefore, wish to take this opportunity to explain to those constituencies that have not yet received the 2013 CDF allocation why that has happened.

Sir, efforts are being made to disburse the CDF to all the constituencies before the end of the year, despite the limitations that my ministry faces. We deserve commendation.

Hon. Opposition Members: Question!

Hon. Government Members: Hear, hear!

Mrs Kabanshi: Mr Speaker, of the 150 constituencies, ninety-four have received their full CDF allocation for 2013.

Hon. Government Members: Hear, hear!

Mr Kabanshi: Mr Speaker, that leaves a balance of fifty-six constituencies.

Mr Sikazwe: Only.

Mrs Kabanshi: Mr Speaker, my ministry has received a further K50 million from the National Treasury, and the process of distributing it to thirty-eight constituencies has already started.

Hon. Government Members: Hear, hear!

Mrs Kabanshi: Mr Speaker, my ministry will disburse the CDF to the remaining eighteen constituencies as soon as possible. I, therefore, appeal for patience from those who have not yet received their allocation. Who knows, you may be the first ones to be funded next time.

Hon. Government Members: Hear, hear!

Mrs Kabanshi: Mr Speaker, those who have already received may be the last to receive in the next allocation.

Sir, I appeal to hon. Members of Parliament to help in promoting transparency and accountability in the utilisation of funds so that councils can prudently use and retire the CDF.

In the 2014, my ministry has budgeted for monitoring and evaluation of CDF projects …

Mr Muntanga: On a point of order, Mr Speaker.

Mr Speaker: A point of order is raised.

Mr Muntanga: Mr Speaker, I seek your ruling on the hon. Minister of Local Government and Housing.

Sir, in the list of the fifty-six constituencies that were given the CDF, which you demanded to be made available to the House, it was very clear, for example, that, out of the fourteen constituencies in Luapula, thirteen had received their CDF. Only one was left out, which is represented by an MMD hon. Member. When we followed the whole list, it showed that there was selective distribution. Is she in order to continue provoking us by saying that she is not selective, when she actually showed extreme favouritism in the first allocation in June, this year, according to the papers that were laid on the Table? Is she in order to do that without explaining whether there are other constituencies that were given the CDF?

I seek your ruling, Mr Speaker.

Mr Speaker: I can see that there is an attempt to usurp the powers of the Speaker, but it will be in vain. I will direct the hon. Minister, as she continues addressing this subject, to take into account the observation by the hon. Member for Kalomo Central and respond accordingly.

The hon. Minister may continue.

Mrs Kabanshi: Thank you, Mr Speaker, for your guidance.

Sir, ours is a working Government.

Mr Livune: Question!

Mrs Kabanshi: I did not indicate that we had stopped allocating the CDF.

Mr Muntanga interjected.

Mrs Kabanshi: There was the first allocation and we have continued. We will finish disbursing the funds very soon. By next week, we will only remain with eighteen constituencies. So, we are not being selective at all, but have given every constituency what is due to it, apart from the eighteen.

Hon. Government Members: Hear, hear!

Mrs Kabanshi: Sir, in 2014, my ministry has budgeted for the monitoring and evaluation of CDF projects to improve efficiency and accountability. I hope that hon. Members will support the Budgetary allocation, …

Mr Livune: Question!

Mrs Kabanshi: … as it is well-intended.

Mr Speaker, the PF Government, through my ministry, is determined to revamp the operations of the local government system, which had almost ground to a halt, so as to directly improve service delivery and reduce poverty levels in our communities.

Sir, the PF Government, under the able leadership of His Excellency, …

Mr Livune: Question!

Hon. Government Members: Hear, hear!

Laughter

Mrs Kabanshi: … Mr Michael Chilufya Sata, is working hard to ensure that the favourable economic growth indicators that Zambia has recorded over the years do not only end up as mere statistics, but are translated into real change for the betterment of the majority of the citizens. I, therefore, appeal to all the hon. Members of this House to support the PF Government and His Excellency the President, Mr Michael Chilufya Sata, as we move forward to consolidate growth and social justice in peace and unity.

Sir, I am confident that the whole nation is eagerly waiting to commemorate Fifty Years of God’s Favour on Zambia for Continued Peace, Unity, Democracy, Patriotism and Prosperity, next year.

Mr Speaker, I thank you for giving me the opportunity to contribute to the debate on the 2014 National Budget.

Mr Speaker, I thank you.

Hon. Government Members: Hear, hear!

Mr Hamududu (Bweengwa): Mr Speaker, your Committee considered the Estimates of Revenue and Expenditure for the Financial Year 1st January to 31st December, 2014. During this process, various stakeholders were invited to appear before your Committee to submit written and oral comments on the proposed Budget. I will now highlight some of the findings and recommendations of your Committee.

Sir, the witnesses who appeared before your Committee expressed concern over the Government’s failure to meet the macro-economic objectives in the 2013 Budget. For example, the 2013 GDP growth rate is projected to remain at 6 per cent, lower than the Budget forecast of 7 per cent, while the projected year-end inflation rate of 6 per cent is unlikely to be achieved. As at end of September, 2013, inflation remained above the target of 7 per cent.

Sir, your Committee would like to state that fiscal deficits are a common feature in most countries. Zambia has been running Budget deficits for some time now. However, your Committee is concerned about the sharp increase in the 2013 projected Budget deficit from 4.5 per cent to 8.5 per cent of the GDP. This sends a wrong signal about the Government’s management of expenditure. Your Committee is aware that, when the country has experienced such a problem in the past, it has mainly been as a result of external factors that the country had not control over, for instance, sudden increases in the price of oil on the international market and sudden depreciation of the Kwacha, making the import bill bigger than planned. Regrettably, the current situation has mainly resulted from unplanned expenditure, which we had control over, such as the creation of new districts and construction of new universities and roads that were not provided for in the Budget. Your Committee does not wish to underrate the importance of these projects in any way. However, they should have been properly planned and provided for in the Budget. To avoid a repeat of this problem and meet the projected 6.6 per cent fiscal deficit in 2014, your Committee seriously urges the Government to stick to the activities planned and provided for in the Budget. The revision of Zambia’s credit rating by various rating agencies should send a message that something is wrong and needs to be corrected.

On employment-creation, Sir, the witnesses who appeared before your Committee bemoaned the lack of a comprehensive employment strategy for the creation of 200,000 jobs in 2014, especially that the tentative report by the hon. Minister of Finance indicates that, by September, 2013, only 58,000 jobs had been created, against a target of 200,000 jobs. Your Committee urges the Government to come up with a comprehensive employment-creation strategy to deal with the serious unemployment situation in the country.

Sir, your Committee notes that the external debt has considerably increased in the last few years, from less than US$1 billion in 2005 to US $3.13 billion in 2013. While your Committee notes that the current external debt is still sustainable, it recommends that measures be put in place to prevent the country from falling back into another debt trap.

On mining taxation, Sir, the witnesses who appeared before your Committee expressed concern over the fact that the contribution of the mining sector to the National Treasury is quite small. Your Committee finds it unacceptable that, in 2013, the contribution of mining taxes to the GDP was expected to be only 2.8 per cent, and is expected to rise only marginally to 3.1 per cent in 2014. Your Committee is concerned over the Government’s failure to maximise tax revenues from this important sector, especially in times of high metal prices.

Sir, the witnesses were also concerned about the over-reliance on profit-based taxes that have not benefited the country due to inherent sophisticated compliance-avoidance techniques, such as transfer pricing and hedging. In this regard, your Committee knows that the raising of the Mineral Royalty Tax from 3 to 6 per cent in 2012 achieved minimal benefits because it is a corporate-tax-deductable expense. Your Committee proposes that the Government modifies the application of the Mineral Royalty Tax so that it ceases to be a corporate-tax-deductable expense. Your Committee also recommends that the Government comes up with an appropriate tax system that will enable the country to derive the maximum benefit from both its large-scale and small-scale mining in the various parts of the country, and from the various types of minerals that exist, apart from copper.

Mr Speaker, your Committee knows that the Government has increased the allocation to the agricultural sector from 5.8 per cent, in the 2013 Budget to 7.2 per cent in the 2014 Budget. However, it is also aware that the country is a signatory to the Maputo Declaration on Agriculture and the Comprehensive African Agriculture Development Programme (CAADP), which require the Government to allocate, at least, 10 per cent of the National Budget to the agricultural sector. The current allocation, though increased from last year’s, falls short of that commitment. In addition, while maize is important and requires continuous support, it is important to provide enough resources to key drivers of holistic agricultural development, such as research, extension services, new technology, irrigation, soil fertility management and livestock and fisheries development. Your Committee further recommends that the Government promotes the participation of the private sector in input distribution and crop marketing to reduce the pressure on the Treasury. To enhance that, there is a need to promote the export of crops to boost agricultural business by taking advantage of the food deficit in the region and beyond.

Sir, your Committee is of the view that the agricultural sector plays a significant role in poverty alleviation, as over 60 per cent of the people in our country depend on agriculture. Therefore, to reduce extreme poverty, which stands at 42 per cent, significant attention should be paid to the sector.

Mr Speaker, on education, your Committee notes that the allocation to the sector has increased from 7.5 per cent, in the 2013 Budget, to 20.2 per cent, in the 2014 Budget. This allocation meets the Cairo Protocol requirement of 20 per cent. However, your Committee is concerned about the general low quality and standard of education in Zambia. Therefore, it is regrettable that much of the ministry’s budget will be directed towards infrastructure development in the new universities while the serious challenge of classroom space and materials needed to improve the quality and standard of education at the primary and secondary school levels remain under-funded. The over-emphasis on university education is crowding out the attention that should be paid to foundational education, that is, the primary and secondary education levels, at which the majority of our learners are.

Mr Speaker, stakeholders expressed concern that little attention is paid to technical education and skills development, which are key drivers of economic development in developing countries that require the skills of artisans.

Sir, your Committee notes that the allocation to the health sector has reduced from 11.3 per cent in the 2013 Budget to 9.9 per cent in 2014. Your Committee is concerned about this reduction because it faces many challenges, such as poor supply of medicines, inadequate medical personnel and dilapidated infrastructure. The reduction is also not in keeping with the Abuja Declaration, which encourages governments to allocate, at least, 15 per cent of their national budgets to the health sector, and our Government is a signatory to the declaration. In light of the above, your Committee urges the Government to increase the allocation to this sector. The increment will go a long way in meeting various health-related millennium development goals (MDGs).

Mr Speaker, your Committee is concerned that the Budgetary allocation to water and sanitation sector continues to be insignificant. Inevitably, this has a corresponding effect on the disease burden and poverty. This is evident in the MDGs Progress Report, which estimates that 80 per cent of preventable diseases in Zambia are related to poor sanitation. Your Committee, therefore, recommends that the Government increases the allocation to this sector.

Sir, your Committee notes that the allocation to the Local Government and Housing sector has marginally increased. Your Committee is aware that the local authorities are faced with challenges like huge debts to employees and utility companies, and non-payment of pension arrears and terminal benefits. Your Committee is concerned that the funding for infrastructure in the newly-created districts will crowd out the fiscal space for addressing existing challenges in the old local authorities. In this regard, your Committee recommends that the Government increases the allocation to the local authorities for them to meet the challenges that they currently face.

Mr Speaker, your Committee is concerned about the poor levels of nutrition, with stunted growth caused by chronic malnutrition currently estimated at 46.46 per cent, as reported in the MDG Progress Report co-authored by the United Nations Development Programme and the Government. Malnutrition has strong negative effects on education outcomes and the productivity of a population. Therefore, it will be a long-term drain on the economy. The Committee urges the Government to provide targeted funding and implement interventions that will reduce and, eventually, eliminate malnutrition among the Zambian children.

Sir, in the 2014 Budget Address, the hon. Minister announced a moratorium on the recruitment of civil servants. With the 650 clinics to be built across the country next year, and the current shortage of essential workers in schools and hospitals, the Government should consider putting an exemption of this measure on essential workers in the health and education sectors to avoid a crisis in the next two years.

Mr Speaker, as I conclude, I wish to record your Committee’s indebtedness and gratitude to you for according it the opportunity to consider the 2014 Estimates of Revenue and Expenditure. I also thank the stakeholders that appeared before your Committee and contributed to its work. Gratitude also goes to the Clerk of the National Assembly of Zambia and her staff for the service rendered to your Committee.

I thank you, Sir.{mospagebreak}

Hon. UPND Members: Hear, hear!

The Minister of Finance (Mr Chikwanda): Mr Speaker, I wish to express my very profound gratitude to all hon. Members of Parliament for their practical contributions on the Motion of Supply on the 2014 Budget, which I presented to this august House on 11th October, 2013.

Sir, allow me to especially compliment the Expanded Committee on Estimates for the wise counsel rendered to us during our interaction with its meticulous Members. The Committee has raised very pertinent observations on both the revenue and expenditure policies. We cannot agree more with its comments, observations and recommendations, which are well articulated in its report. I also wish to acknowledge the resourcefulness of the various stakeholders, collaborators and the general public, who provided very constructive comments on the various aspects of the Budget.

Sir, my work would not have been possible without your unwavering guidance and wisdom, and I thank you most profoundly. I will attempt to respond to some of the issues raised by hon. Members of this august House as briefly and as explicitly as possible. I wish to inform the House that while it may not be possible to provide adequate responses to all the issues that have been raised, I strongly believe that most of these concerns will be adequately addressed by my very able colleagues on your right when they deliver their respective ministries’ policy statements in the Committee of Supply.

Mr Speaker, hon. Members have rightly expressed their disquiet about the paltry contribution of the mining sector to tax revenue. The mining sector in Zambia contributes merely 5 per cent to the domestic tax revenue while it contributes, at least, 11 per cent in the other SADC major mining countries. The mineral royalty tax in these countries is 3 per cent while it is 6 per cent in Zambia. The low contribution of the mining sector in Zambia can only be attributed to the pervasive tax fraud, a state of affairs that we are dealing with by placing a team of experts in the Zambia Revenue Authority (ZRA) to design systems that will enable the Government to determine both the quantities and content of the minerals produced in Zambia. Only then shall we be able to re-structure the mining taxation in a way that optimises revenue from the sector without impairing its operations. Minerals are a non-renewable resource, and it is only fair that the country gets a fair and reasonable return from its non-renewable resources. That way, we will safeguard the interests of posterity.

Mr Speaker, some stakeholders have raised concerns over the fact that the revenue projections, particularly for non-tax revenues, for 2014 are over-ambitious. The increase in non-tax revenue targets is on account of the new requirements of all statutory bodies collecting public funds to channel all their collections to the Treasury. This is one of the PF Administration’s policies aimed at strengthening accountability in the use of public funds. In 2014, the following institutions will be required to channel their revenue collections to the Treasury:

(a) the Zambia Information and Communication Technology Authority (ZICTA);

(b) the Patents and Company Registration Agency (PACRA):

(c) the Zambia Bureau of Standards (ZABS);

(d) the Zambia Weights and Measures Agency (ZWMA); and

(e) the Zambia Environmental Management Agency (ZEMA).

Sir, although these funds will be channelled to the Treasury, adequate arrangements have been made to ensure that funding to these institutions is not affected. The funds will be deposited into a dedicated account at the Bank of Zambia while releases will be made directly from the account without having to channel such funds through Control 99.

Mr Speaker, other policy measures that have contributed to the increase in non-tax revenue estimates are the tolling of selected road infrastructure and the national land titling project, which I announced in my Budget Address.

Mr Speaker, some of the stakeholders, particularly those in the tourism sector, have raised concerns about the revision of the incentives for the tourism sector. Zambia will continue to be a tourism destination of choice in view of our vibrant cultural heritage, natural wonders and game, among other unique endowments that our country is blessed with.

Sir, last year, I announced the suspension of customs duty on new motor vehicles for the tourism enterprises, duty rebates on new articles and equipment needed to furnish or refurbish accommodation and catering facilities for businesses licensed as tourism enterprises. These concessions are still in place even after the successful hosting of the United Nations World Tourism Organisation General Assembly (UNWTO-GA). I wish to urge the business community in the tourism sector to come forward and access these incentives, which will expire at the end of the year.

Mr Speaker, I wish to allay the fears over the suspicion that the Government intends to do away with all incentives granted to investors under the Zambia Development Agency (ZDA). These claims are totally misplaced and we should not pay much attention to them. What we have proposed is to streamline the granting of incentives through the ZDA in order to prevent abuse and revenue leakage. Incentives under the ZDA mechanism will continue, but will be confined to sectors in the MFEZs, industrial parks and rural areas.

Sir, we have continued to receive recommendations for the Government to cast the tax net wider and capture the income being generated in the informal sector. The informal sector is one of the sectors classified as ‘hard-to-tax’ because of the nature of its transactions. The administrative arrangements and costs of effectively taxing income in this sector far outweigh the revenues that can possibly be generated. The most effective and feasible way to tax the informal sector is through indirect taxation, such as value added tax (VAT) and excise duty, as opposed to income taxation. This means that we need to have most of the goods consumed in Zambia, excluding foodstuffs, brought into the tax net. Then, everyone, including the informal sector traders, will pay the tax on the goods they consume. This is an area in which the Government is currently exploring ideas. This House will be informed once a decision has been made.

Mr Speaker, with regard to the expenditure policy for the 2014 Budget, one issue that came out prominently during the policy debate was the issue of the recruitment and wage moratorium. I wish to reiterate that the Government has proposed a deferment of net recruitments to 2015 and wage adjustments to 2016. However, it is important to note that replacements due to retirements, resignations, deaths or dismissals and other factors will still be undertaken in 2014. This implies that all the institutions that will embark on the replacement of staff for the reasons I have highlighted above will be authorised to do so because the positions are already provided for in the 2014 Budget.

Sir, emoluments in the public sector are characterised by glaring disparities and inequalities. The PF Government has raised the emoluments of those trapped at the bottom substantially in its continued efforts to bridge the gaps. This exercise will take ten years to put things on an even keel. As a consequence of the adjustments, the wage bill for the 2014 fiscal year is K15.5 billion or 52 per cent of the locally-generated revenues, which are forecast at K29 billion. The moratorium is dictated by fiscal unsustainability and the dire need to rationalise salaries. Workers in the Public Service should appreciate the Government’s commitment to moral benchmarks that principally entail a reduction in inequalities in the salary structures. The Government also has a serious obligation and responsibility to upgrade expenditure on growth-promoting projects. Only in this way can we grow the economy and give it the vibrancy that guarantees fiscal sustainability and responsibility. All of us serving our country in the Public Sector have to make a little sacrifice and take into account the sad plight of millions of our compatriots who have no jobs or any gainful economic activity. The salaries in the public sector now far surpass those in the private sector. Let us remember that the tax contributions of the workers in the private sector are a substantial contribution to Government revenue, which supports emoluments in the public sector. Lavishing public sector employees with unsustainable benefits to the exclusion of the overall interests of the population, including of those who are yet to get jobs, is an abdication of our responsibilities to run an inclusive Government. It is in this spirit that I make a passionate plea to all of us in the public sector to assign primacy to the country’s long-term development needs, not immediate ego-gratification.

Hon. Government Members: Hear, hear!

Mr Chikwanda: Mr Speaker, the CDF –

Hon. Opposition Members: Hear, hear!

Mr Chikwanda: I knew, I knew that even those who were dosing would wake up.

Laughter

Mr Chikwanda: Mr Speaker, the seemingly inadequate allocation to the CDF is merely a reflection of the glaringly huge resource gap that we have, as a country. It is in this vein that we have heard the suggestions from various hon. Members to make modest adjustments so as to accommodate the suggestions put forward. The disbursement of the fund has also provoked a heated debate.

Hon. Opposition Members: Yes.

Mr Chikwanda: Mr Speaker, the CDF is a quick way of taking development to the people in various localities of the country.

Hon. Opposition Members: Hear, hear!

Mr Chikwanda: Mr Speaker, we must find equitable and expeditious ways of allocating the CDF outlays.

Hon. Opposition Members: Yes.

Mr Chikwanda: Mr Speaker, my ministry will critically look at the structures at the district level to determine the effectiveness of using districts as a route for the disbursement of the CDF.

Hon. Opposition Members: Hear, hear!

Mr Chikwanda: Mr Speaker, this will be in conformity with the Government’s objective and thrust towards decentralisation.

Hon. Opposition Members: Hear, hear!

Hon. Opposition Member: Do not resign, Sir.

Mr Chikwanda: Mr Speaker, I was hired by the President, not …

Hon. Opposition Members: Hear, hear!

Mr Chikwanda: … the Zambian Watchdog.

Laughter

Mr Chikwanda: Mr Speaker, as the pace of development quickens, there will be resource gaps occasioned by inadequate revenue in relation to the many projects that we have to finance, apart from Constitutional obligations like emoluments and servicing of debts incurred in the past. Concerns about the country’s ability to repay loans or debt-sustainability are very legitimate. The only way out is ensuring sustainable high growth rates. The PF Administration is mindful of the debt trap we were in before 2005 and our thrust is to watch the debt profile, both local and external. We need to put a lot more effort in developing sectors with huge potential. If our borrowing targets the growth sectors of agriculture, energy and tourism, our debt servicing will be bearable.

Mr Speaker, it is appropriate for me to acknowledge the wise counsel of the former Chancellor, the former Minister of Finance, Hon. Dr Musokotwane, on the need for us to practice fiscal prudence. Let us bear in mind that external lenders are comfortable to lend to Zambia because they are convinced that we have the ability to pay. They also approve of our sound macro-economic policy framework and the enabling environment we have created for both local and foreign investment. The peace and stability that characterise Zambia induce confidence in our economy. It is, however, imperative that we avoid living beyond our means so that we do not encumber future generations with unsustainable debt.

Hon. Opposition Members: Hear, hear!

Mr Speaker, a number of stakeholders and collaborators have recommended that the Government enhances transparency in the budgeting process so as to accord the public an opportunity to contribute to the policies. Currently, the general public is involved in the Budgeting process, through the Medium Term Expenditure Framework, which is issued every year. The Government issues a Green Paper, which is a policy document that outlines key policies for the short and medium terms, and provides indicative budgetary allocations to each sector. It seems that, even with this process already in place, stakeholders still feel that they are not fully involved in the process. I am glad to inform you that the PF Administration has taken steps towards correcting that, starting with the development of the Planning and Budgeting Policy, on which there are on-going stakeholder consultations. I will come back to this August House with the Planning and Budgeting Bill after we have received the comments and the Cabinet has given its approval.

Mr Speaker, yesterday, you requested me to explain the issues surrounding Statutory Instrument (SI) No. 89 of 2013, and the implications of its re-alignment at the behest of His Excellency, the President. The SI was issued to suspend export duty on copper ores and concentrates for one year. The rationale of SI No. 89 was to ensure that revenue from the mines is not unduly delayed as a result of the stockpiling that is currently going on. According to Section 134 of the Mines and Minerals Development Act, the mineral royalty tax is due when the minerals are sold, either in a raw or processed form. Given that mining companies have been producing and stockpiling, the Government has not been able to receive revenue, as projected, to fund its operations. The issuance of SI No. 89 was part of cash-flow management so that the Government could not be compelled to resort to short-term borrowing at a high cost or curtailing expenditure to institutions due to non-receipt of mineral royalty tax.

Mr Speaker, the revocation of SI No. 89 will not occasion any revenue losses, but may result in further delays of revenue into the Treasury. The delay in receiving mineral royalty tax on copper ores and concentrates is dependent on the time it will take mining companies to process and sell the copper.

Mr Speaker, in conclusion, it is encouraging that Parliament is diligently and positively executing its oversight function and mandate.

Mr Speaker, I thank you.

Hon. Members: Hear, hear!

Question put and agreed to.

__________

ADJOURNMENT

The Vice-President (Dr Scott): Mr Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.

__________

The House adjourned at 1805 hours until Friday, 1st November, 2013.