Wednesday, 30^th November, 2016

 

The House met at 1430 hours

 

[MR SPEAKER in the Chair]

 

NATIONAL ANTHEM

 

PRAYER

 

_____

 

QUESTIONS FOR ORAL ANSWER

 

SUSPENSION OF BROADCASTING LICENCES

 

30. Mr Miyanda (Mapatizya) asked the Minister of Information and Broadcasting what the reasons for the suspension of the broadcasting licences were for the following media houses after the 11^th August, 2016 General Elections:

 

1. Muvi Television;
2. Komboni Radio; and
3. Itezhi-tezhi Radio.

The Minister of Information and Broadcasting (Ms Mulenga): Mr Speaker, the broadcasting sector is regulated by the Independent Broadcasting Authority (IBA), under the Independent Broadcasting Authority Act No. 17 of 2002, as amended by Act No.26 of 2010.

 

Mr Speaker, the IBA, therefore, ensures that there is professionalism and impartiality in the electronic media industry by developing standard operating procedures for broadcasting stations. The authority monitors broadcasting stations to ensure that they comply with the law and standard operating procedures. When a broadcasting house fails to comply with the standard operating procedures, it is censured in accordance with the laid-down procedure. The three stations were censured for non-compliance.

 

The Government is glad to note that the authority executed its mandate in a professional manner by ensuring that media houses abided by the conditions of the broadcasting licences. Further, it is important to note that the IBA continuously monitors the operations of broadcasting stations according to their licences, and many of the issues that arise during the monitoring exercise are resolved promptly and quietly.

 

Mr Speaker, the IBA will endevour to ensure sanity in the broadcasting sector by making certain that all broadcasting stations adhere to the IBA Act, all the relevant laws of Zambia, standard operating procedures and the code of ethics.

 

Mr Speaker, I thank you.

 

Mr Miyanda: Mr Speaker, according to the hon. Minister’s response, the issue here is that of non-compliance. Hon. Minister, I wish to find out from you what the three stations did not comply with that necessitated the evocation or withdrawal of their licences?

 

Ms Mulenga: Mr Speaker, some of the reasons include poor moderation of programmes, news bulletins, and the use of staff to openly campaign for some political parties.

 

I thank you, Sir.

 

Mr Miyutu (Kalabo Central): Mr Speaker, on one hand, we have the Independent Broadcasting Authority (IBA). On the other hand is the Government and, in between, are the media houses, which include the Zambia National Broadcasting Corporation (ZNBC). In your view, hon. Minister, is the IBA independent of Government influence? If not, how much influence is there from the hon. Minister of Information and Broadcasting?

 

Ms Mulenga: Mr Speaker, the IBA is an independent body that receives no influence from the Government.

 

I thank you, Sir.

 

Mr Mwiimbu (Monze Central): Mr Speaker, the hon. Minister mentioned that one of the reasons for closing the three broadcasting stations was the use of staff to openly campaign for Opposition political parties.

 

Hon. Government Members: Mm!

 

Mr Mwiimbu: I would like to find out from the hon. Minister whether or not, under the democratic dispensation of this country, it is an offence to air programmes for Opposition political parties?

 

Ms Mulenga: Mr Speaker, in my response, I stated clearly that one of the reasons for evoking the licences was the use of staff to openly campaign for political parties. This is not in line with the Editorial Policy. In fact, two of the media houses admitted the existence of these irregularities in their broadcasting before the Independent Broadcasting Authority (IBA) Board.

 

I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Mr Muchima (Ikeleng’i): Mr Speaker, the Zambia National Broadcasting Corporation (ZNBC) is one of the institutions regulated by the Independent Broadcasting Authority (IBA). One of the reasons stated for the revocation of licences for the three media houses was the use of staff to openly campaign for political parties.

 

Mr Speaker, is the hon. Minister of Information and Broadcasting aware that officers in the Lunda Section of the corporation have continued to campaign for the Patriotic Front (PF) and that officers who support the United Party for National Development (UPND) have been banished?

 

Ms Mulenga: Mr Speaker, no complaint relating to such an incident has been brought before the IBA. So, I cannot treat what the hon. Member is saying as gospel truth.

 

Sir, I made it clear that members of staff participated in the campaigns that were broadcast, contrary to the Editorial Policy.

 

I thank you, Mr Speaker.

 

Mr Kasonso (Solwezi West): Mr Speaker, I would like to find out from the hon. Minister whether or not she is aware that the Zambia National Broadcasting Corporation (ZNBC) was partisan in the airing of campaign messages for political parties. Why did the Independent Broadcasting Authority (IBA) not censor the campaign messages that were aired by the ZNBC?

 

Ms Mulenga: Mr Speaker, n o such complaint was made against the ZNBC. I am sure that is why the IBA did not take any action. We are hearing about this for the first time.

 

I thank you, Mr Speaker.

 

Hon. Government Members: Hear, hear!

 

Prof. Lungwangwa (Nalikwanda): Mr Speaker, …

 

Mr Mwiimbu: On a point of order, Sir.

 

Mr Speaker: Order!

 

Hon. Member for Monze Central, I should have indicated earlier on that I do not normally allow points of order in this segment of the Business of the House.

 

Hon. Member for Nalikwanda, you may continue, please.

 

Prof. Lungwangwa: Mr Speaker, could the hon. Minister clearly explain to the House what is unethical about openly campaigning for a political party on the part of both the private and public media?

 

Ms Mulenga: Mr Speaker, private radio and television stations have the right to campaign for political parties. I think the hon. Member for Nalikwanda did not hear me clearly because I said that members of staff were part of those political campaigns, contrary to the code of ethics.

 

I thank you, Mr Speaker.

 

Hon. Government Members: Hear, hear!

 

Mr Mbangweta (Nkeyema): Mr Speaker, in light of the clarification by the hon. Minister that some media houses were censored because of being partisan, I would like to find out from her whether the Independent Broadcasting Authority (IBA) has one set of rules which applies to the Zambia National Broadcasting corporation (ZNBC) and another set of rules which applies to the private media.

 

Ms Mulenga: Mr Speaker, I suppose I answered that question. The IBA did not receive any complaint from the general public in regard to the ZNBC.

 

I thank you, Mr Speaker.

 

Hon. Government Members: Hear, hear!

 

Mrs Mazoka (Pemba): Mr Speaker, I would like the hon. Minister of Information and Broadcasting to be truthful.

 

Sir, our party used to pay for …

 

Hon. Government Members: Which party?

 

Mrs Mazoka: The United Party for National Development (UPND), of course.

 

Laughter

 

Mr Speaker: Order!

 

Hon. Member, please, do not be distracted.

 

You may continue, please.

 

Mrs Mazoka: Mr Speaker, the UPND used to pay for space on the Zambia National Broadcasting Corporation (ZNBC) Television, but the ZNBC refused to air its programmes. It is, therefore, surprising that today, the hon. Minister is saying that there was no complaint whatsoever from the public.

 

Hon. Government Members: Ah!

 

Mrs Mazoka: Sir, complaints were registered. I would like the hon. Minister to be honest. She should not come to this House and tell us things that she knows are not true. Could she be sincere.

 

Hon. UPND Members: Hear, hear!

 

Interruptions

 

Mr Speaker: Order!

 

Let us have some order.

 

Hon. Members, I am following the debate closely.

 

The Question by the hon. Member for Mapatizya is why the three private media stations were closed. The hon. Minister has since advanced an explanation for the closure. However, the hon. Member for Pemba has introduced a new subject relating to political advertisements that were paid for. According to her statement, complaints were raised in relation to the advertisements that were paid for. However, that is not the subject before us. The subject before us is why the stations were closed. It is not whether or not complaints were lodged after the failure by the Zambia National Broadcasting Corporation (ZNBC) to broadcast the advertisements. That is not the question at hand.

 

Hon. Government Members: Hear, hear!

 

Mr Speaker: I know that this is an emotive subject, but let us present it clearly and seek clarification on the statement issued by the hon. Minister.

 

Mr Kundoti (Luena): Mr Speaker, I realise that there is a lack of truthfulness in most of what the hon. Minister is saying.

 

Mr Speaker: Order!

 

Hon. Member for Luena, take your seat.

 

Laughter

 

Mr Speaker: Order!

 

There is no need for these aspersions. If you wish to seek clarification, do so.

 

You may continue, please.

 

Mr Kundoti: Mr Speaker, the hon. Minister has told this House that the suspension of the licences for the television station and two radio stations was that members of staff of the three media houses campaigned for Opposition political parties.

 

Hon. Government Members: Question!

 

Mr Kundoti: However, Sir, she has not specified whether the members of staff campaigned publicly on the streets, in their programming or content. If the hon. Minister is referring to campaigns through programming, I believe it was normal for editorial staff of the broadcasting houses to disseminate information.

 

Mr Speaker, the Zambia National Broadcasting Corporation (ZNBC) …

 

Interruptions

 

Mr Speaker: Order!

 

Mr Kundoti: … airs programmes that are pro-Patriotic Front (PF), yet there is no objection from the Government. I say so because …

 

Mr Speaker: Order!

 

What is your question? I am getting impatient with you.

 

Hon. Government Members: Hear, hear!

 

Mr Kundoti: Mr Speaker, my question is: Why has the Independent Broadcasting Authority (IBA) not censored the ZNBC when it has been used as a tool to spread messages of hatred in this country?

 

Hon. UPND Members: Hear, hear!

 

Mr Speaker: Order!

 

Ms Mulenga: Mr Speaker, I indicated that the participation of members of staff in the campaign was not the only reason for the closure of the media houses. There were other reasons such as poor moderation of programmes and misleading news bulletins.

 

Sir, it is equally deceiving for the hon. Member of Parliament to deny the participation of the radio and television stations in political campaigns when the media stations admitted the unethical conduct before the IBA Board.

 

I thank you, Mr Speaker.

 

Hon. Government Members: Hear, hear!

Mr Jere (Livingstone): Mr Speaker, I would like the hon. Minister to comment on what is enshrined in the Supreme Law of the land, namely Article 50 of the Constitution which states:

 

“A political party and a candidate contesting in an election shall have access to the media, especially during election campaigns.”

 

Sir, the hon. Minister has stated that the broadcasting of the three media houses was contrary to the code of ethics. Does she not think that people were denied the much-needed information on from Opposition political parties and their candidates in order for people to make informed decisions before casting their vote?  

     

Ms Mulenga: Mr Speaker, in my earlier response, I stated that media houses are allowed to disseminate information on behalf of any political party as long as they abide by their editorial policy. On the other hand, journalists have what are called journalism ethics. If they do not follow the code of ethics, their licences are suspended. Moreover, the media houses in question admitted before the Independent Broadcasting Authority (IBA) that their broadcasting was contrary to the code of ethics.

 

I thank you, Mr Speaker.

 

Hon. Government Members: Hear, hear!!

 

NYIMBA LOCAL COURT

 

31. Mrs Mwansa (Nyimba) asked the Minister of Justice:

 

1. why the construction of Nyimba Local Court had stalled;
2. when the construction works would resume;
3. what the time frame for completing the project was; and
4. what the total cost of the project was.

 

The Minister of Justice (Mr Lubinda): Sir, construction works at Nyimba Local Court have stalled due to a lack of funds to pay the contractor. The works will resume as soon as funds to pay for all the certified works are made available. The time frame for the construction of Nyimba Local Court is sixteen weeks effective 1^st October, 2013, when the contract was signed. The total cost of the project is K1,290,361.50. A total of K45,000 has so far been paid, leaving a balance of K940,361.50.

 

I thank you, Mr Speaker.

 

TOWNSHIP ROADS IN NCHELENGE DISTRICT

 

32. Mr A. B. Malama (Nchelenge) asked the Minister of Local Government:

 

1. why works on the upgrading of township roads in Nchelenge District had stalled;
2. when the works would resume; and
3. what the time frame for completing the project was.

 

The Minister of Local Government (Mr Mwale): Mr Speaker, works on the Nchelenge District township roads have stalled due to non-payment of certified works. Works will resume when funds are made available to the contractor. Additionally, the hon. Minister of Housing and Infrastructure Development informed the House that the contractor is on the list of contractors that are scheduled to be paid from the funds that have been released by the Ministry of Finance. The contractor should be paid K3 million possibly this week and should go back on site soon after.

 

Sir, the time frame for the completion of the project will be determined by the timely release of the project funds by the Ministry of Finance. Works will begin once the contractor is back on site. However, the Ministry of Housing and Infrastructure Development has to certify certain construction works and issue certificates. That is what will determine the completion period. However, all things being equal, it should take under ten weeks to complete the project.

 

I thank you, Mr Speaker.

 

DAMS AND BOREHOLES IN NYIMBA DISTRICT

 

33. Mrs Mwansa asked the Minister of Water Development, Sanitation and Environmental Protection:

 

1. whether the Government had any plans to construct more dams and sink additional boreholes in Nyimba District, which was currently facing a critical shortage of water;
2. if so, when the plans would be implemented; and
3. if there were no such plans, why.

 

The Minister of Water Development, Sanitation and Environmental Protection (Mr Kaziya): Mr Speaker, the Government has plans to construct more dams and sink additional boreholes in Nyimba District. Ten potential dam sites countrywide have been identified since 2014 under the Small Dams Development Programme. The Government has budgeted for ten boreholes in 2016 in Nyimba under the National Rural Water Supply and Sanitation Programme. Out of the ten potential dam sites, the one in Kacholola is undergoing feasibility studies and is likely to be constructed in 2017. The construction of the remaining potential sites will be evaluated during between 2017 and 2021. When funds are made available, the planned ten boreholes will be drilled in the remaining months of 2016.

 

I thank you, Mr Speaker.

 

Mrs Mwansa: Mr Speaker, in his ministerial statement yesterday, the hon. Minister talked about industrial boreholes. How many industrial boreholes will be allocated to Nyimba District?

 

Mr Kaziya: Mr Speaker, we intend to allocate three industrial boreholes to Nyimba.

 

I thank you, Mr Speaker.

 

POLICE STATION AND STAFF HOUSES IN MPULUNGU DISTRICT

 

34. Mr Chansa (Chimbamilonga) asked the Minister of Home Affairs:

 

1. when the construction of a police station and staff houses in Mpulungu District would commence;
2. how many staff houses were earmarked for construction;
3. what the cause of the delay in commencing the project was; and
4. what the time frame for completion of the project was.

 

The Minister of Home Affairs (Mr Kampyongo): Mr Speaker, the construction of a police station and staff houses in Mpulungu District will commence as soon as funds are made available. Land has been secured for the project. Forty staff houses are earmarked for construction along with the police station. The delay has been due to the non-availability funds. The estimated time frame for the project to be undertaken is about eighteen months. However, the actual period can be established when the contract is awarded to a contractor.

 

Mr Speaker, I thank you.

 

Mr Ndalamei (Sikongo): Mr Speaker, the hon. Minister clearly stated that the project will only be implemented when funds are made available. Has the the construction of the police been included in the 2017 or 2018 Budget?

 

Mr Kampyongo: Mr Speaker, there is a likelihood of the police station being included in the 2018 Budget because, as guided by the Ministry of Finance, we shall concentrate on the completion of the projects that are underway.

 

I thank you, Sir.

 

DISTRICT HOSPITAL IN MKUSHI

 

35. Ms Mwape (Mkushi North) asked the Minister of Health:

 

1. why the contract for the construction of a new district hospital in Mkushi was terminated;
2. when the works would resume;
3. what the time frame for the remaining works was; and
4. what the staff establishment for the following categories at the hospital would be:

 

1. doctors
2. nurses; and
3. other support staff.

 

The Minister of Health (Dr Chilufya): Mr Speaker, the contract for the construction of Phase II of the new district hospital in Mkushi is being terminated due to non performance by the contractor, African Contractors Limited. The company was contracted to construct Phase II of Mkushi District Hospital, which comprised two wards, six houses, external walkways and water reticulation facilities. The contractor went on site in June, 2015. Twelve months after handing over the site, the contractor had only done works valued at less than 5 per cent of the contract sum. The contractor has been absent from the site for more than twenty-eight days.

 

Sir, the Ministries of Health and Justice are currently working on the termination of the contract. Thereafter, the remaining works will be tendered and a suitable contractor appointed to complete the works.

 

Mr Speaker, the works are expected to be completed within twelve months.

 

Sir, the staff establishment comprises twelve doctors, seventy-one nurses and 116 support staff.

 

Mr Speaker, the House may also wish to note that the recruitment of health personnel is ongoing and the ministry has already been granted authority to recruit more staff.

 

I thank you, Sir.

 

HEALTH POSTS IN MAPATIZYA

 

36. Mr Miyanda asked the Minister of Health:

 

1. when the following health posts in Mapatizya Parliamentary Constituency would be completed:

 

1. Kanyanga; and

 

1. Mafumba

      b. who the contractor for the project was; and

      c. why the contractor had abandoned the project.

 

Dr Chilufya: Mr Speaker, Kanyanga and Mafumba Health Posts in Mapatizya Parliamentary Constituency are part of the 650 health posts that the Government is constructing through the Indian Line of Credit. The completion of the project has delayed, as it is awaiting release of counterpart funding from the Ministry of Health. The Ministry of Health is currently in discussion with the Ministry of Finance in order to expedite the release of the counterpart funds.

 

Sir, the contractor for the two health posts is Megha Engineering Limited of India.

 

Mr Speaker, the contractor has not abandoned the project. There has been a delay in the completion of the project arising from the delay in the release of counterpart funding for the project. The contractor is expected to expedite the completion of the works as soon as the counterpart funds for the project have been released.

 

I thank you, Sir.

 

Mr Miyanda: Mr Speaker, Hon. Muntanga, may his soul rest in peace, Hon. Sing’ombe and I,  had a meeting with the said contractor at Kalomo District Office. He made it clear that no one in this country should tell him what to do and when to complete the project because he was using money from his country of origin. When is the Ministry of Finance expected to release money for the completion of the two projects?

 

Dr Chilufya: Mr Speaker, I will be reluctant to comment on the statement by the contractor, but will be quick to clarify that the contract was funded by both the Indian and Zambian governments. The Ministry of Health, with support from the Ministry of Finance, is duty bound to fund US$5.9 million of this contract as counterpart funding while the Indian Government is supposed to release US$50 million for the same project. For the contractor the hon.  Member has referred to, the Indian Government has done its bit and we are waiting for the release of the counterpart funding from the Zambian Government. We are still in discussion with the Ministry of Finance on the release of the funds.

 

I thank you, Sir.

 

Mr Mwiimbu: Mr Speaker, the hon. Minister and his predecessor both briefed us on the Floor of this House pertaining to the 650 health posts. They indicated that three contractors had been awarded contracts for the project and that money was available. They also gave a time frame when the health posts would be completed. What has changed? The availability of money for the project has been confirmed more than five times on the Floor of this House. What has changed after the elections?

 

Dr Chilufya: Mr Speaker, I agree with Hon. Mwiimbu that the contract was awarded to three contractors and the contract was supposed to run for two years. We have updated the House on what happened to the third contractor called Angelique International Limited. There was a discussion between the Zambian and Indian governments on the conduct of Angelique International Limited that led to the termination of the contract. That explains the delay in the completion of health posts in the four provinces, namely North-Western, Luapula, Muchinga and Northern. As for the other two contractors, we updated the House that after engaging the contractors, they gave us revised schedules on the completion of the health posts, citing various reasons. One of the reasons is that there was a delay in the release of counterpart funding. The funding from the Indian Government that came through the Indian Line of Credit has been released intermittently, depending on the production of certificates of completion of certain phases of the project. We are now waiting for the contribution from the Zambian Government.

 

Sir, the contractors have not abandoned the sites. However, their pace may have reduced because of the delay in the release of the counterpart funding. Nonetheless, we are working closely with the Ministry of Finance to ensure speedy release of the US$5.9 million that will unlock the project. So, nothing has changed in terms of the number of health posts. It is the time frame that may have been affected by the unforeseen delays in the release of counterpart funding.

 

I thank you, Sir.

 

Prof. Lungwangwa: Mr Speaker, I have a similar question. April, 2016, was set as the completion date for all the 650 health posts. Is the hon. Minister of Health in a position to give us another update, hopefully, before this Session of Parliament comes to an end?

 

Dr Chilufya: Mr Speaker, I would like to refer to the ministerial statement I made a few weeks ago in which I stated that we consulted with various stakeholders, including the Ministry of Finance, and revised the completion period for the health posts. After the consultation, we set April, 2017, as the completion date.

 

I thank you, Sir.

 

Mr Miyutu: Mr Speaker, this project has been running from 2011 and it appears that it will take more than 10 years to be completed. The money from India has been released, but the counterpart funding from the Zambian Government, which is supposed to be serving its own people, has not been released. Is this a sign of ...

 

Interruptions

 

Mr Miyutu: ... a Government which wants get health services closer to the people?

 

Dr Chilufya: Mr Speaker, I question the question.

 

Laughter

 

Dr Chilufya: Mr Speaker, there is unequivocal evidence that this Government is committed to the health of its own people. The Government has appropriated resources towards infrastructure expansion, year after year, from the time the Patriotic Front (PF) came into power, …

 

Mr Mwale: Mwaona manje!

 

Dr Chilufya: … and it has been done equitably.

 

Sir, the Government has built forty hospitals in the last five years. Of the 650 health posts, 400 have been completed. In addition, we have continued to modernise the other facilities; have recruited human resource; have invested in drugs, and have improved service delivery countrywide. The commitment of the PF Government, under His Excellency Mr Edgar Chagwa Lungu, to the improvement of health services in this country cannot be questioned. I wish to assure the hon. Member of Parliament that there is adequate evidence, if he wants to see it, of the commitment that this Government has to health.

 

Sir, further, we need to be factual. The commencement date for this project was April, 2014, and it was supposed to end in April, 2016. All the extensions to the project that have been made have been justified.

 

I thank you, Sir.

 

Dr Kalila (Lukulu East): Mr Speaker, I need some clarity on the counterpart funding. Has the Indian Government released its entire share of the funding  or have the projects failing to proceed because the Indian Government has made it a precondition for us to pay the counterpart funding first?

 

Dr Chilufya: Mr Speaker, the Indian Government has been meeting its obligations and it is time for us to release the counterpart funding. Like I said earlier, there is commitment from the Ministry of Finance and we are working closely to ensure that the US$5.9 million is released to ensure that the project is unlocked. The Indian Government is not withholding any resources and the Government is working tirelessly to ensure that resources are found for the completion of the project.

 

I thank you, Sir.

 

Mr Mutelo (Mitete): Mr Speaker, how sure are we that the health posts will be completed by April, 2017? I ask because the hon. Minister of Health came here, saying, “No, no, no...” ...

 

Laughter

 

Mr Mutelo: Come April, 2017, is the hon. Minister of Health going to give us another, “No” or will this be the final one?

 

Laughter

Dr Chilufya: Mr Speaker, I like the new vocabulary from Mitete. I do not know which, “No, no, no” he is referring to.

 

Laughter

 

Dr Chilufya: However, I will stick to what I said. The consultation with various stakeholders has resulted in the new projected date for the completion of the project. If there shall be a need for a change of date because of unforeseen circumstances, we shall not shy away from updating the House. We will come back and update the House. I hope I have adequately responded to that new vocabulary.

 

I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Mr E. Musonda (Kamfinsa): Mr Speaker, sometime back, the hon. Minister of Health mentioned on the Floor of the House that the termination of the contract with Angelic Contractors was purely due to the differences between the Indian and Zambian governments. However, in response to the question by Hon. Jack Mwiimbu, the hon. Minister of Health has actually drawn the Zambian Government into those differences. Could the hon. Minister of Health inform the House what actually transpired and confirm whether or not the Zambian Government was involved.

 

Dr Chilufya: Mr Speaker, the Zambian Government was party to a contract with Angelic Contractors. So, the termination of the contract had to be done by one of the parties, which was the Zambian Government. The contract was mutually terminated with Angelic Contractors after the input from the Indian Government. We are not being drawn into the difference between Angelic Contractors and the Indian Government, but are doing our part to protect public interest.

 

I thank you, Sir.

 

Mr Ng’onga (Kaputa): Mr Speaker, the hon. Minister of Health indicated that over 400 of the 650 health posts have been completed. If this is so, which provinces are they in? There does not seem to be any in the Northern, Luapula or Muchinga provinces.

 

Hon. Opposition Members: Hear, hear!

 

Dr Chilufya: Mr Speaker, the health posts in the Western Province are nearly complete. The health posts in the Southern Province are more than 80 per cent complete while those in the Central Province and Copperbelt province have been completed. We are still faced with challenges challenges with the seventy-four health posts in Luapula and Northern provinces, more than sixty health posts in Muchinga Province and a few health posts in the North-Western Province.

 

Sir, there is no discrimination of any kind in the construction of health posts. The project has been equitably distributed. When there were challenges with one contractor, we did not shuffle the resources or contractors, but let the contracts run their costs. Hon. Member of Parliament, the project is ongoing and more than 400 health posts have been completed, most of which are in the Western, Southern, Central and Copperbelt provinces. A few are in the northern part of the country.

 

Mr Speaker, I thank you.

 

Mr Chabi (Chipili): Mr Speaker, I am getting excited by the responses from the hon. Minister of Health, especially when he mentioned that the construction of the rural health posts will be completed by April, 2017.

 

Sir, a few weeks ago, …

 

Mr Speaker: Order! Hon. Member, this is time for questions.

 

Mr Chabi: Mr Speaker, I am trying to refer to the statement that was made by the hon. Minister a few weeks ago, when he said that by the end of this year, the Zambia National Service (ZNS) will move in to construct the rural health posts, especially in Luapula Province. In Chipili, five health post have not yet been constructed. Could the hon. Minister tell the people of Chipili whether the five health posts in Chipili are part of those to be completed by April, 2017.

 

Mr Speaker: Is completion not completion?

 

Laughter

 

Dr Chilufya: Mr Speaker, the hon. Member of Parliament for Chipili has correctly said that the ZNS will mobilise in various provinces that were affected by the termination of the contract for Angelique International Limited. The project is still on course. I am not too sure what controversy that raises.

 

Mr Speaker, our target is to complete the health posts by April, 2017, and we are way before that. I do not see the controversy either. I would like to remind the hon. Member for Chipili that in Chipili, the construction of two health posts has commenced. The excavation has already been done and the materials are almost on site. Therefore, it is not like there is nothing going on in Chipili. The project has commenced and will continue until the end. Let me reassure the people of Chipili that the health will be completed as scheduled.

 

I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Mr Mbangweta: Mr Speaker, given that the hon. Minister’s statement came earlier than that by the hon. Minister of Finance and the fact that there are still contractual issues with Angelique International Limited, other contractors and the issue of counterpart funding, would it not be prudent for the hon. Minister to consider revising the completion date for the health posts. This is almost December and the contractors will soon be going on holiday, which leaves you with only four months to do the job.

 

Dr Chilufya: Mr Speaker, if there will be a need to change the dates, we shall get back to the House. For now, we shall stick to the date that was agreed upon by the various stakeholders.

 

I thank you, Mr Speaker.

 

Ms Mwape: Mr Speaker, what measures has the ministry put in place to ensure that the health institutions, especially those in places like Mkushi North which are shun by health personnel, are run by qualified staff?

 

Dr Chilufya: Mr Speaker, the Government recruited qualified health personnel this year. It is also currently recruiting health personnel and deploying them in health posts and various hospitals. This is meant to enhance the quality of health service. So, the provision of human resource for health is a priority for this Government. Our policy is to have all the health posts managed by qualified health personnel, and we are on track. With support from the Ministry of Finance, the deployment of human resource in various health facilities in ongoing.

 

I thank you, Sir.

 

Mr Ng’ambi (Chifubu): Mr Speaker, in my constituency, all the three health posts have been completed and two of them are operational. When is the last one going to be operational? In addition, when is the ministry likely to send medical staff there?

 

Dr Chilufya: Mr Speaker, I would like to confirm that we have already deployed staff in the third health post in Chifubu. We should be able to operationalise the facility in no time as soon as the recruitment of human resource is completed. I am aware that all the health posts that are completed are now staffed. So, there should be no anxiety on the part of the hon. Member for Chifubu because there is staff now at the facility which will soon be operationalised.

 

Mr Speaker, I thank you.

 

Dr Musokotwane (Liuwa): Mr Speaker, some contractors have not paid their employees for six to eight months now. Who should pay the employees and when?

 

Dr Chilufya: Mr Speaker, the Government entered into contracts with three major contractors who, in turn, sub-contracted Zambian companies. So, we are not part of the contracts between the major contractors and sub-contractors. We are not privy to the issues that exist between the two parties. Our commitment to the contractors is to honour the obligation to pay them and expect them, in turn, to honour their obligations to the Zambian companies.

 

Mr Speaker, I thank you.

 

MPULUNGU HARBOUR

 

37. Mr Chansa asked the Minister of Communication and Transport:

 

1. when the works to expand the Mpulungu Harbour would commence
2. what the total cost of the project was; and
3. what the time frame for the completion of the project was.

 

The Minister of Works and Supply (Mr Nkhuwa) (on behalf of the Minister of Communication and Transport (Mr Mushimba)): Mr Speaker, currently, the Government, in collaboration with the African Development Bank (ADB), is undertaking detailed feasibility and engineering design studies. These studies will give the Government estimated costs and other requirements to successfully implement the project. Therefore, until the studies are completed and resources mobilised, the exact date of commencement of the project is unknown. The studies are expected to be completed by September, 2017.

 

Mr Speaker, the exact cost of the project is not yet determined because the feasibility studies and detailed engineering design studies are yet to be completed. Once completed, the engineers’ estimates will provide the tentative cost estimates for the physical project.

 

Mr Speaker, as mentioned earlier, the exact date of completion for the reconstruction works is also yet to be known. However, it will depend on the commencement date for the project and activities to be undertaken during project implementation. The studies are expected to be completed by September, 2017.

 

I thank you, Sir.

 

Mr Ng’onga (Kaputa): Mr Speaker, I would like to find out whether the project will be implemented in the foreseeable future because, as things stand, Tanzania is improving its Kasenga Harbour which is a direct competitor to the Mpulungu Harbour. Is this project getting favourable consideration as an important activity for the people of the Northern region?

 

Mr Nkhuwa: Mr Speaker, for the information of the hon. Minister, this is a grant from the African Development Bank (ADB). It is not a loan. The Government is committed to ensuring that the project is completed. However, the feasibility studies will be completed in September, 2017. We shall ensure that the project is implemented.

 

Mr Speaker, I thank you.

 

Prof. Lungwangwa: Mr Speaker, nine ministries were recently ratified in this House and marine infrastructure is supposed to be under the Ministry of Housing and Infrastructure Development. We are now being told that the Ministry of Communication and Transport superintends over the development of the Mpulungu Harbour. Can we get clarification on whose portfolio the Mpulungu Harbour is located.

 

Mr Nkhuwa: Mr Speaker, at the moment, the Mpulungu Harbour is under the Ministry of Communication and Transport.

 

Mr Speaker, I thank you.

 

Mr Mwiimbu: Mr Speaker, is the hon. Minister not aware that when this House created portfolios, that responsibility was moved from the Ministry of Communication and Transport to the Ministry of Housing and Infrastructure Development?

 

Laughter

 

Mr Nkhuwa: Mr Speaker, I am aware that certain responsibilities have been removed from the Ministry of Communication and Transport. However, this particular responsibility is still under the Ministry of Communication and Transport.

 

I thank you, Sir.

__________

 

MOTION

 

BUDGET 2017

 

(Debate resumed)

 

The Minister of Local Government (Mr Mwale): Mr Speaker, I thank you for giving me the opportunity to contribute to debate on the 2017 Budget Speech by the hon. Minister of Finance. It was an elaborate and confidence-building speech which all well-meaning Zambians received with hope and patriotism, amidst the current challenging economic period.

 

Mr Speaker, in his speech, the hon. Minister of Finance said that the Government wishes to achieve real Gross Domestic Product (GDP) growth of, at least, 3.4 per cent. However, I have noted that a number of my colleagues on your left have criticised this target. In my opinion, it is important to be realistic and true to ourselves, as demonstrated by the hon. Minister of Finance.

 

Mr Speaker, if this is a realistic and attainable target based on our economic and financial projections, it would be folly to suggest a figure that we cannot attain all because we want to be ambitious. We are better off beating this target than setting one that we know we would not attain. For that reason, I wish to commend the hon. Minister of Finance for setting a realistic and attainable target.

 

Mr Speaker, in his speech, the hon. Minister of Finance also reiterated the President’s directive to make Kafue an iron and steel Multi-facility Economic Zone (MFEZ) under the Diversification and Industrialisation Programme.

 

Mr Speaker, I am glad to inform this august House that in 2017, my ministry will position itself to facilitate the realisation of the Presidential directive through the revision of the Kafue Development Plan, pursuant to the Urban and Regional Planning Act No. 3 of 2015 and in line with the Seventh National Development Plan which is under preparation.

 

Sir, my ministry will work with the Ministries of Finance, National Development and Planning and other stakeholders to ensure that the foundation is laid for Kafue to achieve the status of an iron and steel MFEZ.

 

Hon. PF Member: Hear, hear!

 

Mr Mwale: This will not only contribute to the creation of decent jobs, but also support industrialisation for value addition and the diversification of our economy.

 

Mr Speaker, through the local councils, my ministry will try to provide adequate land nationwide to support various investors who want to set up industries that will contribute to the creation of the targeted hundred thousand descent jobs. This will be achieved by working together with other Government institutions, including the Industrial Development Corporation (IDC) and the Zambia Development Agency (ZDA).

 

Mr Speaker, the hon. Minister of Finance referred to the fact that the Government will, in 2017, pilot a National Land Titling Project whose objectives will include, among others:

 

(a)        giving citizens titled assets for credit extension;

 

(b)        enhancing the collection of land rates to finance Government activities;

 

(c)        establishing an integrated and sustainable land registry on the status of land and its use;

 

(d)        protecting vulnerable groups such as women; and

 

(e)        resolving challenges involving disputes among parties.

 

Mr Speaker, my ministry, through the councils countrywide, is an agent of the Commissioner of Lands and presides over land matters in all districts. At the same time, the hon. Minister of Local Government is the principal planner for spacial planning in Zambia, working through planning authorities. Therefore, for the Land Titling Project to be successful, my ministry will work closely with the Ministries of Lands and Natural resources and Finance and will contribute effectively to the collection of land rates that will contribute to income generation for the Government.

 

Mr Speaker, my ministry is elated at the hon. Minister of Finance’s provision of money for the Councils Equalisation Fund (CEF) which will help all councils, especially those with a poor revenue base, to deliver services.

 

Mr Speaker, I promise to ensure that my ministry monitors the prudent and efficient utilisation of funds by all the councils. The mismanagement of funds should be a thing of the past.

 

Further, my ministry will continue to build capacity and provide policy direction to all councils in order to prepare them for more functions under the Decentralisation Programme.

 

Mr Speaker, finally, I am glad to state that the hon. Minister of Finance has demonstrated, through the Budget Speech, how the Patriotic Front (PF) Government wishes to keep its promise of walking the talk.

 

Mr Livune: Question!

 

Mr Mwale: Mr Speaker, I repeat that I am glad to state that the hon. Minister of Finance has demonstrated, through the Budget Speech, how the PF Government wishes to keep its promise of walking the talk.

 

Mr Nkombo: Question!

 

Mr Mwale: The Government intends to cut on wasteful expenditure and focus on unlocking the potential in sectors that will grow the economy and create real decent jobs for its citizens. The economic challenges that the country is going through should be experienced by all of us, not just a section of some people. We should all demonstrate that we are ready to sacrifice for Mother Zambia.

 

Hon. Opposition Members: Oh!

 

Mr Mwale: Our President has led by example …

 

Mr Livune: Question!

 

Mr Mwale: … on this path by cutting his salary by half.

 

Hon. Opposition Members: Ah!

 

Mr Mwale: Mr Speaker, it is up to each one of us, …

 

Hon. Opposition Members: Ah!

 

Mr Mwale: … including the hon. Members on your left, …

 

Mr Livune: Question!

 

Mr Mwale: … to show how we shall demonstrate to our people that we meant it when we said that they are our masters and we are their servants.

 

Mr Speaker, I thank you.

 

Hon. Government Members: Hear, hear!

 

The Minister of Health (Dr Chilufya): Mr Speaker, I thank you for the opportunity to present my Maiden Speech. Allow me to begin by congratulating His Excellency the President of the Republic of Zambia and Her Honour the Vice-President, Madam Inonge Mutukwa Wina, on their deserved victory in the 11^th August, 2016 General Elections.

 

Mr Speaker, further, I would like to congratulate you, the First Deputy Speaker and the Second Deputy Speaker on your election to those positions.

 

Mr Speaker, the people of Mansa Central are special to me. I should hasten to state that without them, I would not have been here. Allow me to thank the people of Mansa Central for giving me a fresh mandate to represent them for the next five years. My pledge to the people of Mansa Central is continued development. We shall focus on the education of the girl and boy children who are illegible; expand access to clean and safe drinking water; continue enhancing the health of the people of Mansa Central; and work with stakeholders to enhance agriculture in the area. The people of Mansa Central have placed their confidence in me. I appreciate this and shall never take it lightly.

 

Mr Speaker, allow me to thank the His Excellency President for honouring the people of Mansa Central and myself by giving me the rare opportunity to serve as Minister of Health. I wish to pledge my loyalty and commitment to him and the people of Zambia and to diligently serve them.

 

Mr Speaker, I take over office from an experienced Minister of Health, Hon. Dr Joseph Kasonde, the man who laid a firm foundation for the health sector, mentored and tutored me. I would like to state that only a few are as privileged as I am to have worked under him and to have been built to this level. I wish Hon. Dr Kasonde the best in his endeavours and promise to continue building on the strong foundation that he laid in the health sector.

 

Mr Speaker, allow me to quickly comment on the Budget Speech that was eloquently delivered on the Floor of the House by the hon. Minister of Finance. The Budget was themed on an economic recovery programme, “Zambia Plus” and is rested on five pillars. In these pillars, we see a Government that is born from real experience and incumbency. We also sense a future that is bold, challenging, yet attainable.

 

Mr Speaker, “Restoring Fiscal Fitness for Sustained Inclusive Growth and Development” means looking at many facets of our economy. The hon. Minister of Finance set clear targets within the gross domestic product (GDP) growth at 3.4 per cent and a year-end inflation rate of under 9 per cent. I would like to focus on the statement of intent to achieve a crystallised activity for Zambia.

 

Mr Speaker, for the nation to be productive, it is important for us to invest in the health of our people. The hon. Minister of Finance stated clearly that we shall focus on the health of our people. He also declared that we shall spend K5.8 billion on health. This amount included human resource development, human resource recruitment, the provision of essential drugs and targeting our overall agenda of attaining stronger health systems and services for our people.

 

Mr Speaker, one key determinant of productivity is labour. For us to be productive as a nation, we need to invest in the health of our citizens, produce a healthy citizenry and labour force, and contribute to improved productivity. I wish to appreciate the hon. Minister of Finance’s position on health. Health is central to sustainable development. It is for this reason that it has been spared in the wider context of fiscal consolidation.

 

Mr Speaker, I must state that key determinants of health lie outside the health sector. The determinants of good health are nutrition, education, water and sanitation. The speech by the hon. Minister of Finance focused on the key determinants of health. It has focused on agriculture which will anchor the renaissance of our economy and with it the spiralling effects of good health and nutrition. With the mixture of private sector interventions and deliberate Government support, the Budget boldly makes agriculture a serious economic undertaking and a major contributor to the GDP and the Treasury. In so doing, we it enhances food security, nutrition and, therefore, contributes to the production of a healthy nation.

 

Mr Speaker, water and sanitation are at the core of a healthy and productive citizenry. The hon. Minister of Finance made it clear that we, as the Government, shall invest in improved access to safe and clean drinking water through the sinking of boreholes and other water and sewerage plants. We shall empower people to be their own masters in managing their own health by giving them access to clean and safe water.

 

Mr Speaker, I have referred to the key determinants of health as a way of emphasising the direct link between health and economics. Education of the girl child and improved literacy leads to better decision-making in health. My ministry is a direct beneficiary of improved literacy in the nation. Therefore, the statement by the hon. Minister of Finance that he will invest heavily in education and entrepreneurial skills training means that our society will be literate enough to make healthier decisions.

 

Mr Speaker, key highlights of the health budget were that health workers would be recruited in 2017. The Hon. Minister further said that essential drugs worth K769 million would be procured. This is a statement of intent by the PF Government to invest in the health of its people.

 

The Speech by the hon. Minister of Finance resonated well with the policy pronouncement in the His Excellency the President’s Speech where he emphasised the breaking of silos to address all the key determinants of health to ensure that our people are healthy. So, addressing water and sanitation, agriculture and education, is addressing the health of our people. Therefore, I call this Budget a healthy Budget.

 

Mr Speaker, as I conclude, I wish to emphasise that health yields undoubted dividends. Healthy people are more productive. Cognitive development in our infants is enhanced with good health. Healthy infants and children can develop and become better adults. The only way the economic strides contained in this Budget can be attained is by investing in health directly and we are seeing increased investment in health. Increased investment in health will translate into hundreds of billions of kwacha per year in additional income which can be used to improve living conditions.

 

Sir, the increase in the allocation to social cash transfer means that there will be improved household income that will enhance the health of our people. It should be emphasised that for every 10 per cent improvement in life expectancy at birth, there is a corresponding 4 per cent increase in the GDP. That is why I see a common trend and thread in all the sector budgets. When agriculture is well resourced, people are healthy and there will be fewer costs in terms of treatment in hospitals. When people have access to clean and safe water, they will be healthier and there will be fewer costs on hospital care. Then, the resources shall be redirected to other areas of need.

 

Mr Speaker, I wish to urge the hon. Members of this House to fully support the Budget. There was a call for improved infrastructure in many constituencies. The Government has made a clear statement of intent through this Budget to expand infrastructure. There is adequate provision for infrastructure development in all parts of the country. Health is non-partisan and we expect to continue building health posts and hospitals in various parts of the country to ensure improved access to health services. Our agenda shall remain that of having stronger health systems and services for healthier people.

 

Mr Speaker, I thank you.

 

Mr Kafwaya (Lunte): Mr Speaker, I am privileged and delighted to deliver a report of your Expanded Committee on Estimates which considered the Estimates of Revenue and Expenditure for the year ending 31^st December, 2017.

 

Sir, in making these considerations, various stakeholders were invited to appear before your Committee to make written and oral submissions from which I now highlight some of the findings and recommendations.

 

Mr Speaker, in reporting these findings and recommendations, I will consider the following themes:

 

1. macroeconomic objectives;
2. agriculture;
3. Sinking Fund;
4. diversification;
5. energy;
6. skills development;
7. mineral royalty;
8. fiscal and monetary policy; and
9. conclusion.

                       

Mr Speaker: Order, hon. Member!

 

Hon. Member, please, raise your voice. You are quite distantly located and we have to strain our ears to follow what you are saying.

 

Interruptions

 

 

Mr Speaker: Order!

 

Mr Kafwaya: Mr Speaker, your Committee notes the macroeconomic objectives set in the 2017. It is also of the view that most of the targets are realistic and achievable. However, it is concerned that the set target for the fiscal deficit at 7 per cent of GDP is high. Your Committee considered that setting this target high might have negative implications on the much-desired fiscal consolidation as pronounced by the hon. Minister of Finance in his Budget Speech to Parliament and the nation at large.

 

Sir, your Committee is aware that one of the factors that contributed towards the stifling of economic growth, among other things, was the growing fiscal deficit which has led to debt accumulation and higher interest payments. It is expected that a fiscal deficit should be funded, anyway. The proposed borrowing to finance the deficit may further increase the interest payments. In addition, Government participation in domestic borrowing may have the effect of crowding out the private sector if not well handled.

 

Mr Speaker, your Committee urges the Government to exercise caution in the process of contracting debt as a means of financing the projected deficit. In this regard, your Committee supports the progressive austerity measures outlined by the hon. Minister of Finance and recommends that the Government stays on course by adhering to planned activities and avoiding variations where practicable.

Sir, regarding the GDP growth objective of 3.4 per cent, your Committee is of the view that this is achievable. In line with the interconnectedness of economic activities, your Committee feels that economic growth will be impacted by the country’s ability to generate and distribute electricity. Your Committee, therefore, urges the Government to increase its focus on enhancing power-generation capacity.

 

Mr Speaker, your Committee notes that there is an increase in the resource allocation to the agriculture sector. It further notes that significant amounts are planned to be channelled through the Food Reserve Agency (FRA) and the Farmer Input Support Programme (FISP). It is the view of the Committee that the Government should consider reviewing the impact of the two programmes on our rural poor and make necessary adjustments looking ahead.

 

Sir, in view of the above, your Committee recommends that the Government considers increasing allocations to programmes such as livestock development, irrigation, research and development, and extension services in the agriculture sector. This may have the potential to foster the diversification process as promoted by both His Excellency the President of the Republic of Zambia, Mr Edgar Chagwa Lungu, and the hon. Minister of Finance, Hon. Felix Mutati.

 

Mr Speaker, your Committee notes that the Government wishes to roll out the Electronic Voucher (e-Voucher) Programme by 100 per cent. Your Committee also notes that the e-Voucher Pilot Phase encountered some challenges. It is, therefore, the view of your Committee that the Government should devise a risk management approach to counter the effects of possible challenges in the 100 per cent roll-out phase.

 

Mr Speaker, your Committee observed that there was no allocation for the Sinking Fund in the Budget under review. The fund is meant to ensure certainty of loan repayments as and when they fall due. It is, therefore, your Committee’s view that the Government considers allocating resources to this fund. This will guarantee loan repayments.

 

Sir, your Committee notes, with gratitude, the Government’s call for diversification from not only a mining-centred economy to maize-centred agriculture and other cash crops, fisheries and livestock, but also one anchored on other sectors such as agriculture and tourism.

 

Mr Speaker, it is your Committee’s view that the policy on diversification be reflected in the funding to programmes which support the policy such as livestock, fisheries, research and development, and extension services as already referred to.

 

Mr Speaker, your Committee observes that the Government plans to employ major policy changes in the energy sector by implementing cost-reflective tariffs and allowing the procurement to be undertaken by the private sector. It is also of the view that going forward, adequate measures, resulting from a comprehensive situation review be instituted, not only aimed at ensuring a smooth transition, but also providing stability.

 

Sir, your Committee notes that the Government has proposed a 0.5 per cent skills development levy as a non-tax measure. Your Committee appreciates the principle underpinning this proposal and wishes to urge the Government to ensure that proceeds of this initiative be applied to the intended goal in order to develop a specific type of skills needed to take the country to the next level.

 

Mr Speaker, your Committee is aware that the Government has been receiving mineral royalties from the mining companies. It is also aware that there has been inconsistency in the recognition of this revenue as either a tax or non-tax revenue. Therefore, it is your Committee’s view that this recognition inconsistency causes difficulty in making comparative conclusions year on year. Consequently, it recommends that its recognition be made consistent so as to provide for ease of performance assessment and comparison.

 

Sir, your Committee recommends that there be co-ordination between the activities of fiscal policy and monetary policy. This will ensure that the efforts of the two sides of the economic management activities are pooled in one direction to ensure the recovery sought by the country. This will also ensure the maximisation of benefits from implementing the two sides of management policies.

 

Mr Speaker, as I conclude, I wish to record your Committee’s gratitude to you for according it the opportunity to serve on this important Committee. I also wish to thank all the stakeholders who appeared and made submissions before your Committee. This contributed significantly to the outcome I now lay before you today. Gratitude also goes to the Clerk of the National Assembly and her staff for the services rendered to your Committee.

 

I thank you, Sir.

 

The Minister of Finance (Mr Mutati): Mr Speaker, I wish to thank you for giving me the opportunity to wind up debate on the Budget Motion. I wish to thank the Expanded Committee on Estimates for the comprehensive observations and recommendations that it has rendered through its report. I have studied the report extensively. Therefore, I now wish to make appropriate comments.

 

Sir, I also wish to thank the hon. Members of Parliament for their enthusiasm, maturity, candour and genuine advice rendered on the Floor of this House. Further, I wish to thank the various stakeholders that we have engaged with for their constructive critique and advice given to the Government on the 2017 Budget. This simply shows that we are in this together

 

Mr Speaker, it will be difficult for me to respond to the various issues that have been raised by the hon. Members of Parliament and the Chairperson of the Expanded Committee on Estimates. However, I shall attempt to group the issues that have been raised in four categories.

 

Sir, the first category refers to what the former Minister of Finance, the hon. Member of Parliament for Liuwa Constituency, called intelligent spending and what His Excellency President Lungu referred to as smart spending when he officially opened this Parliament.

 

Secondly, I will address myself to issues around the fiscal deficit, the interplay between monetary and fiscal policy, and the direction that the country is going to take in order to address this issue.

 

Thirdly, I will address myself to macro-economic stability as a key driver of growth and how, in effect, the 2017 Budget is going to be implemented.

 

Fourthly, I shall address myself to the issues that have been raised in regard to policy consistency. Then, I shall render some closing reflections.

 

Mr Speaker, the hon. Member of Parliament for Liuwa said yesterday that the Budget is an important instrument for improving people’s lives and inspiring hope. This statement was paraphrased last week by the hon. Member of Parliament for Lupososhi who said that it was not necessarily what you get, but your spending habits that make you rich.

 

Mr Speaker, to put this Budget together, difficult decisions and choices had to be made. Particularly, we told ourselves that we cannot spend money that we do not have. Some key elements that we confronted in the 2017 Budget were those related to agriculture. We decided to maintain the subsidy targeted at production and removed the one associated with consumption. This meant that we needed to migrate from the current framework of the Farmer Input Support Programme (FISP) to the e-Voucher System. This goes to show that we are not afraid of failure. We are going to walk on this turf.

 

Mr Speaker, the wastage that was associated with the FISP or the uneven targeting of the programme needed to be dealt with. We wanted to use agriculture as the platform to diversification. That is why we have included a number of crops such as cassava and beans in the e-Voucher System. In 2017, we are going to support over 1,000 emerging farmers with financial facilities. 

 

Further, as part of diversification, over US$55.4 million has been set aside for the Cashew Nut Programme in the Western Province. This programme will impact over 600,000 farmers.

 

Hon. Government Members: Hear, hear!

 

Mr Mutati: Mr Speaker, we are also setting aside resources for irrigation. This is a key platform for diversification. The contribution of agriculture to the gross domestic product (GDP) should increase from 8 per cent to 10 per cent in 2017. These are the issues that we are dealing with in this sector. 

 

We also had to address the issue of fuel subsidies. In this vein, we decided to remove the subsidies on fuel so that the pricing of fuel pricing is market determined. Consequently, we have been able to make some savings last month and this month and, potentially, next month. These savings have, in part been used to clear the arrears for contractors and providers of services. They have also been used, in part, for infrastructure development.

 

Mr Speaker: Order!

 

Business was suspended from 1615 hours until 1630 hours.

 

[MR SPEAKER in the Chair]

 

ANNOUNCEMENT BY MR SPEAKER

 

ROAD SECTOR AGENCIES’ SENSITISATION WORKSHOP

 

Mr Speaker: Hon. Members, before we proceed, I have an announcement to make.

 

I wish to inform all hon. Members of Parliament that the National Road Fund Agency (NRFA), the Road Transport and Safety Agency (RTSA) and the Road Development Agency (RDA) will hold a half-day Parliamentary Sensitisation Workshop on the Operations of the Road Sector Agencies on Monday, 5^th December, 2016, starting at 0800 hours in the Auditorium at Parliament Buildings.

 

All hon. Members are urged to attend this important workshop.

 

I thank you.

 

______

 

Mr Mutati: Mr Speaker, when business was suspended, I was about to start talking about the energy sector.

 

Mr Speaker, one critical decision that we made in the energy sector was to migrate to cost-reflective tariffs. We have engaged a consultant to carry out this work and we expect the report be ready by the end of June, 2017.

 

We have also decided to engage the private sector. However, in doing so, we are conscious of the fact that we need to secure the security of the nation in terms of fuel supply so that if there is any disruption of any kind, the economy is not affected. All these decisions will have an impact on the people. Yesterday, the hon. Minister of Community Development and Social Welfare said that we should not leave the people behind in whatever we do.

 

In ensuring that we carry along the most vulnerable in our society, we have increased the allocation to the Social Cash Transfer in the 2017 Budget by 85 per cent, to K552 million. Further, we intend to provide food to 1.25 million school-going children in 2017. In an effort to be inclusive of everyone, we shall provide almost K1.6 billion in next year’s Budget to clear the arrears for the pensioners.

 

Hon. Government Members: Hear, hear!

Mr Mutati: This is aimed at cushioning the vulnerable in our society.

 

Sir, the second key issue that was also raised by the Chairperson of your Committee is I regard to fiscal deficit. Agreeably, the task of restoring stability and escalating growth will not be easy. We also agree, particularly with the Chairperson of your Committee, that fiscal deficit at 7 per cent is fairly high. Yesterday, my good friend, the former Minister of Finance, the Member for Liuwa, Hon. Dr Musokotwane, said that sometimes we make an improvement if we lose by twenty to zero. Then, in the next round, you lose by eleven to zero. This means that you have lost, but have made an improvement.

 

Mr Speaker, in our case, we are only losing two goals to one. So, there is potentially a direction that we are going to take to address the fiscal deficit. How are we going to address this? One of the four things that we are going to do that were also mentioned in the Budget is that we are going to restrict capital expenditure, particularly expenditure that is financed from borrowings. We are also going to ensure that we use public-private partnerships (PPPs), starting with the dual carriageway from Lusaka to Ndola.

 

Hon. Government Members: Hear, hear!

 

Mr Mutati: The Ndola/Mufulira and Chingola/Chililabombwe roads will also be financed by the private sector because we believe that infrastructure can be developed by the private sector.

 

Mr Speaker, the third thing that we are doing is to ensure that unplanned for expenditure is grossly minimised by implementing the Integrated Financial Management Information System (IFMIS) in the various Government ministries and spending agencies and by putting in place the Single Treasury Account (STA) that will minimise and contain some of the wastage that it has been associated with.

 

Mr Speaker, we are also carrying out necessary revisions to the Public Finance Act so that it becomes more punitive to the abusers of public resources. We are revising the Zambia Public Private Partnership (ZPPP) Act. All this is meant to address the issues around the pressure that the fiscal policy is exerting on monetary policy.

 

Sir, a typical example that I can give is that of a borehole drilled by the hon. Member of Parliament for Kasenengwa at K18,000, and another one drilled by the hon. Minister of Local Government at K45,000. From this, you can see the fiscal distortion. Therefore, when we revise the Zambia Public Private Partnership Act, the prices will be benchmarked so that there are a standard prices …

 

Hon. Government Members: Hear, hear!

 

Mr Mutati: … for all the activities within the Government. We, therefore, believe some of these measures will begin to reduce the pressure of fiscal policy on monetary policy.

 

Mr Speaker, the third item that was raised was in regard to implementation. The key issue here is that of attitude.

 

Sir, the hon. Member for Mbala said that when a senior Permanent Secretary appeared before your Committee to respond to issues relating to the Budget, he said that we are not designed to deliver output. So, that is what is affecting implementation.

 

Mr Speaker, my good friend, Hon. Lubinda, talked about the introduction of performance contracts so that we can begin to measure the performance of the Civil Service, including us, hon. Ministers, so that we should be judged by our performance. Just like one unionist said, you cannot get rich by demanding, but you can only get rich by performance. That is the attitude that we are going to adopt. Attitude is key in our dispensation.

 

Mr Speaker, the fourth pillar is that of policy. The Chairperson of your Committee made reference to policy consistency. Sometimes, it is better to have a bad policy that is implemented consistently than a good policy that is not implemented.

 

Hon. Members: Hear, hear!

 

Mr Mutati: Sir, we have chosen to be consistent in regard to policy, particularly in key sectors such as mining, agriculture and industrialisation. The classification of the Mineral Royalty Tax needs to be addressed.

 

Mr Speaker, the 2017 Budget has made no provision for the Sinking Funds. When formulating the Budget, we decided on a high deficit of beyond 7 per cent in case we want to provide for a Sinking Fund. Our motive was to defer the creation of the Sinking Fund for 2017 and direct our effort to refinance particularly the Eurobonds. So, the strategy for next year is that we shall begin to refinance the Eurobonds to achieve better pricing and elongate the maturities because that is what has made us provide for the Sinking Fund, as referred to by our colleague, the Chairperson of the Expanded Committee on Estimates.

 

Sir, we also agreed with the Chairperson that the Skills Development Fund needs to be managed properly. As we industrialise and diversify the economy, the whole issue of skill becomes important because it affects productivity. In 2017, over K240 million will be reserved to address the issue of skills deficiency.

 

Mr Speaker, the other day, the hon. Minister of Labour and Social Security told me that a foreign national is able to lay 500 blocks per day. Another one from an African country lay 350 blocks, while a Zambian national will lay 250 blocks. Therefore, there is a deficiency that we must address. Perhaps, the Skill Development Fund is the beginning of that journey to address the issue of skills deficiency.

 

Sir, yesterday, the Zambia National Farmers Union (ZNFU) engaged the hon. Members together with the hon. Minister of Agriculture. It asked for more relief so that it can increase the diversity in agriculture. The only thing that we said is that relief must be given with corresponding productivity and generation of revenue or jobs. You cannot ask for something without giving something in return. You cannot be in the habit of receiving only without giving. Therefore, as the Government, we are not an industry that has competences in giving favours. We have to run this ship correctly.                                 

 

Mr Speaker, may I conclude by giving some reflections on some of the statements that were made on the Floor of this House regarding the 2017 Budget. Let me start by saying that I would like to agree with some of the statements.

 

The hon. Member of Parliament for Monze Central said that we should strengthen the strings that hold us together. In effect, he meant that we are in this together. If the economy performs well, everybody wins.

 

Mr Speaker, the hon. Member for Ikeleng’i said that we must not promise what we cannot deliver. The Government’s philosophy for 2017 onwards is to stick to the National Budget and deliver upon it.

 

The hon. Member for Bwana Mkubwa said that we should not be seized and captured by today’s failures, but think of the success that may come tomorrow. In other words, let us be hopeful.

 

Mr Speaker, I will end with the remarks of the hon. Member for Mbala who said that we are not designed to change attitudes. So, what will make the 2017 Budget successful is a change of attitude and for us to believe that we are in this together, and have collective wisdom. This is what is going to make Zambia a better place.

 

Mr Speaker, I thank you.

 

Hon. Members: Hear, hear!

 

Question put and agreed to.

 

ADJOURNMENT

 

The Vice-President (Mrs Wina): Sir, I beg to move that the House do now adjourn.

 

Question put and agreed to.

 

­­____________ 

 

The House adjourned at 1649 hours until 1430 hours on Thursday, 1^st December, 2016.