Wednesday, 23^rd November, 2016

 

The House met at 1430 hours

 

[MR SPEAKER in the Chair]

 

NATIONAL ANTHEM

 

PRAYER

 

______

 

MINISTERIAL STATEMENTS

 

KABWE-PENSULO 330 KV TRANSMISSION LINE FAULT

 

The Minister of Energy (Mr Mabumba): Mr Speaker, I thank you for giving me the opportunity to present a ministerial statement on the power outages that have affected five provinces.

 

Mr Speaker, on Saturday, 19^th November, 2016, the Zambia Electricity Supply Corporation (ZESCO) experienced a disturbance in its power system at 1300 hours which resulted in the loss of power supply to Muchinga, Northern, Eastern, Luapula and Central provinces. The loss of power supply happened when the 330 KV Kabwe-Pensulo Line at the Pensulo Substation in Serenje tripped due to a fault on a line following a strike of lightning. The fault resulted in twelve towers sustaining broken insulators, cut conductors, complete damage of the optic fibre guard wire and damage to some of the tower members. This was on a stretch covering approximately 6 km.

 

Mr Speaker, due to the severity of the fault, a total load of about 342 MW was lost during the disturbance. However, the 330 KV Kabwe-Pensulo Line was not restored due to the extent of the damage. Repairs on the line started on the evening of Saturday 19^th November, and have been ongoing since then. The delays are as a result of the adverse intermittent weather conditions.

 

Mr Speaker, the repair works involved the replacement of the conductor, optic fibre cable, insulators and steel members on the towers. It is expected that the repair works will be concluded on Wednesday, 23^rd November, 2016.

 

Mr Speaker, it should be noted that ZESCO had to mobilise equipment from the Zambia National Service (ZNS) and other private companies like TBEA of China to manage the extensive repair works.

 

Mr Speaker, the damage to the ZESCO infrastructure is estimated to cost around US$1.5 million. This includes the cost of replacement of materials and hire of equipment.

 

Mr Speaker, I thank you.

 

Mr Speaker: Hon. Members are now free to ask questions on points of clarification on the statement issued by the hon. Minister.

 

Ms Katuta (Chienge): Mr Speaker, will the Zambia Electricity Supply Corporation (ZESCO) compensate business owners for the losses they have incurred as a result of the power outage? When there is such an occurrence, there should be alternative ways of providing power.

 

Mr Speaker: Order!

 

 I would like to remind those who seek to ask points of clarification that only one question is allowed per Member.

 

Mr Mabumba: Mr Speaker, under normal circumstances, I do not think that it is ZESCO which is supposed to compensate the business owners. While I regret the inconvenience that the disturbance has caused for business in the five provinces, I wish to state that it was a natural calamity. Had it been due to negligence on the part of ZESCO, the issue of compensation would have arisen. Therefore, ZESCO will not compensate anyone because it did not anticipate the fault.

 

Mr Speaker, I thank you.

 

Mr Mwiimbu (Monze Central): Mr Speaker, we have heard the explanation that the hon. Minister has given pertaining to the power blackouts in the Northern region. I wish to find out from him what has necessitated the severe load-shedding in the last two weeks in the other parts of the country that have not been affected by the problem in the Northern region.

 

Mr Speaker: Order!

 

Hon. Members, you are supposed to ask supplementary questions. I know that the hon. Minister is also responsible for that aspect. However, I am afraid that as important as it is, it does not fall within the purview of the statement. He has come in on a specific mission.

 

Mr Kabanda (Serenje): Mr Speaker, Hon. Katuta partly covered my question. I wanted to find out about a fallback plan in the event of outages such as this one.

 

Mr Mabumba: Mr Speaker, we do not have a fall back plan on the Kabwe-Pensulo Transmission Line, hence the challenge that we are experiencing. However, our focus will be on another transmission line from Kabwe to Pensulo, given that we have five provinces that get power from there. So, we have already tendered a transmission line that is supposed to be part of the fallback strategy.

 

Thank you, Sir.

 

Mr Chisopa (Mkushi South): Mr Speaker, I wish to sympathise with the hon. Minister because I know that this could only be compared to a disaster. I equally sympathise with the five provinces that have been affected by this situation, bearing in mind that the amount of money ...

 

Mr Speaker: Order!

 

Hon. Members, I have always cautioned that there is no need for prefaces. It is about questions. You either have a question or do not have one. If you do, get to it right from the outset.

 

You may continue.

 

Mr Chisopa: Mr Speaker, I thank you for your guidance. I know very well that US$1.5 million will impact the Government coffers. How has this money been sourced?

 

Mr Mabumba: Mr Speaker, fortunately, much of the material needed to carry out the repair works is already in the Zambia Electricity Supply Corporation (ZESCO) stores. All that has to be done is request for it. The estimated cost of the material to be used in the repair works is US$1.5 million.

 

I thank you, Sir.

 

Mr Daka (Msanzala): Mr Speaker, I would like to find out from the hon. Minister what measures the Government and ZESCO have taken to ensure that there is no recurrence of such a calamity elsewhere, on another line. Technically, such accidents are preventable. In view of this, have we put any lightning arrestors on the other lines so that we do not suffer a similar calamity like the one on the Pensulo Line.

 

Mr Mabumba: Mr Speaker, the long-term sustainable solution would be to have by-pass transmission lines, as lightning is not preventable. The transmission lines between Pensulo and Kabwe had insulators and conductors, but they still got burnt. If we hada fallback transmission line, then, power would still be wheeled to the other parts of the country. For instance, there is a transmission line that goes to the Copperbelt. However, we have erected another transmission line from Mumbwa to Kalumbila. This means that if the transmission line that goes to the Copperbelt is affected, power can still be transmitted to the Copperbelt using the Mumbwa/Kalumbila Transmission Line. This is what we want to do in the other parts of the country where we do not have a fallback transmission line. If we had an interconnector with Tanzania, we would be able to import power from her into the Northern parts of the country like Kasama or Nakonde which are near Tanzania.

 

Mr Speaker, so, like I said earlier, we have to invest in additional transmission lines as a fallback strategy.

 

I thank you, Sir.

 

Mr Lufuma (Kabompo): Mr Speaker, I would like to thank the hon. Minister for that statement. Since the damage is extensive and the money required for the repairs is US$1.5 million which is quite colossal, is there insurance cover for such a calamity?

 

Mr Mabumba: Mr Speaker, given the nature of work that the Zambia Electricity Supply Corporation (ZESCO) is involved in, much of its business is covered by insurance. Obviously, some of the money might be claimable from insurance companies.

 

I thank you, Mr Speaker.

 

Mr P. Phiri (Mkaika): Mr Speaker, unfortunately, the Eastern Province is one of the provinces that have been affected by the power outage. Hon. Minister, when are we likely to have power restored?

 

Mr Mabumba: Mr Speaker, the feasible date for restoration of power is tomorrow. However, if our teams complete the repair works in the middle of the night, then, power is likely to be restored around that time. However, having been to the site this morning, it would be safer to say that power will be restored tomorrow.

 

I thank you, Sir.

 

Mr Nkombo (Mazabuka Central): Mr Speaker, in responding to the question by the hon. Member of Parliament for Kabompo, the hon. Minister mentioned that the Zambia Electricity Supply Corporation (ZESCO) has insurance cover for most of its installations. Is he confirming that the part of the line where the accident occurred also had insurance cover? Can he also confirm that the claim process has commenced, considering that it involves a colossal amount of money?

 

Mr Mabumba: Mr Speaker, I appreciate the question by Hon. Nkombo. However, I have to confirm whether that particular part of the line is covered.

 

I thank you, Sir.

 

Mr Speaker: That is a specific response. That is what it should be always. If we are not sure, we should say so.

 

Mr Mukumbuta (Senanga Central): Mr Speaker, may I inform the hon. Minister that overhead transmission lines are always vulnerable to such calamities. Is the Government considering installing underground transmission lines?

 

Mr Mabumba: Mr Speaker, there are some areas where underground cables have been installed. For example, the transmission line that goes into Chilubi is underground. However, it has proved safer to have overhead transmission lines.

 

I thank you, Mr Speaker.

Mr Mutale (Chitambo): Hon. Minister, having in mind that the Pensulo Substation was recently refurbished and the main transformers were replaced with new ones, may I found out from the hon. Minister if any of the new transformers have been affected by the power outage?

 

Mr Mabumba: Mr Speaker, the substation at Pensulo has not been affected by this fault. Only about 6 km, involving twelve pylon towers, have been affected.

 

I thank you, Sir.

 

Dr Malama (Kanchibiya): Mr Speaker, I note that we have personnel manning some places on the transmission line. Were there any casualties resulting from the incident?

 

Mr Mabumba: Mr Speaker, the fortunate part is that the transmission lines are in the bush. So, there were no casualties. However, if there were human beings nearby, there would have been many casualties because most of the area has been burnt.

 

I thank you, Mr Speaker.

 

Mr Mukosa (Chinsali): Hon. Minister, why has it has taken so long for the Zambia Electricity Supply Corporation (ZESCO) to rectify the situation because six to seven days without electricity is a long time.

 

Mr Mabumba: Mr Speaker, it has taken about four days to have power restored because the incident happened on Saturday. We are talking about a stretch of 6 km which covers twelve transmission towers. So, this is a huge amount of work to be done.

 

Sir, I have requested ZESCO to show a video of the damage that took place during prime time on the Zambia National Broadcasting Corporation (ZNBC) Television so that the Zambian people can appreciate why we were not able to restore power on time.

 

I thank you, Mr Speaker.

 

Mr Bwalya (Lupososhi): Hon. Minister, Tebea is the company that was contracted to work on the line from Pensulo to Kasama and from Pensulo to Chipata. For avoidance of doubt, may I know whether the portion of the power line that has been affected is under the TBEA contract and whether the accident could be attributed to poor workmanship.

 

Mr Mabumba: Mr Speaker, these are old transmission lines. They do not cover the new transmission lines that were put up by TBEA.

 

I thank you, Sir.

 

Mrs Jere (Lumezi): Mr Speaker, may I find out why it has taken the hon. Minister this long to give a statement on this calamity …

 

Hon. Opposition Members: Hear, hear!

 

Mrs Jere: … because keeping quiet for too long leaves room for speculation and for people to say a lot of negative things against the Government.

 

Hon. Government Members: Hear, hear!

 

Mr Mabumba: Mr Speaker, as you may be aware, I was not in the country when the accident happened and only learnt about it upon arrival. On Monday, Her Honour the Vice-President and I went to Mwinilunga for a ground breaking ceremony of a mini-hydropower station. Also, I did not want to issue a ministerial statement before having a physical check of what happened.

 

Hon. Government Members: Hear, hear!

 

Mr Mabumba: So, this morning, Hon. Sikazwe and I flew to Serenje to see the extent of the damage so that as I address my hon. Colleagues and the Zambian people, I speak from an informed position.

 

Hon. Government Members: Hear, hear!

 

Mr Mabumba: Sir, we took time to go to Serenje to assess the situation. Like I said earlier, power is likely to be restored by tomorrow.

 

I thank you, Mr Speaker.

 

Mr Ngulube: Hear, hear!

 

Mr Mung’andu (Chama South): Mr Speaker, from this incident, it is clear that we, as a country, are not prepared for such calamities. Is the ministry putting in place measures to ensure that in the event of a power outage, there are alternative ways of transmitting power to the districts?

 

Mr Mabumba: Mr Speaker, I totally agree with my colleague because there are five provinces that do not have power. However, like I said earlier, we need to invest in additional transmission lines so that when we have a major fault like the one we had, …

 

Interruptions

 

Mr Speaker: Order! Order!

 

Mr Mabumba: Mr Speaker, firstly, we need to invest in additional transmission lines. We also need to invest in the Kabwe/Pensulo Transmission Line so that we can continue to transmit power in the event of such calamities. I also mentioned that we need to invest in the Mumbwa/Kalumbila Transmission Line in case there is a problem on the Leopard Hills/Kabwe Transmission Line. In future, we shall construct another transmission line from Pensulo to Mansa because, at the moment, Luapula Province gets power through the Northern Province. So, to address the situation, we intend to construct a separate transmission line into Luapula and another one from Kabwe into Pensulo.

 

Secondly, Sir, since we depend on power from Kariba and, considering how long it takes for the power to be transmitted, when there is a major fault like the one we recently experienced, some provinces are affected. Last Monday, Her Honour the Vice-President and I went to Mwinilunga for a ground breaking ceremony of a mini-hydropower station. We shall promote the establishment of mini-hydropower stations so that we can have localised generation and transmission of power. This way, when major transmission lines are affected, some provinces will not be affected.

 

I thank you, Sir.

 

Mr Chabi (Chipili): Mr Speaker, in one of his responses, the hon. Minister said that on the Main News this evening, a video will be shown in the interest of the affected people in the five provinces. How are they going to watch the video when there is still no power?

 

Laughter

 

Mr Mabumba: Mr Speaker, that is a very interesting question by my neighbour in Chipili. However, I wish to assure him that there is power on the Copperbelt and in Lusaka, Southern, and Western provinces. When they watch that video, I am sure they can share it via WhatsApp with those in the affected areas of Luapula and other provinces.

 

Interruptions

 

Mr Speaker: Order!

 

Mr Mabumba: Mr Speaker, there are some isolated districts which have not been affected by the power outages. For instance, there is a 1 MW-power station in Shiwang’andu. So, the people in Mbala will be able to watch the news on Prime Television. Also, those in Kasama will be able to watch because of the Chishimba Mini-Hydropower Station. Like I said earlier, those in the isolated districts that have not been affected by the power outages will be able to see the damage that is on the Kabwe/Pensulo Transmission Line.

 

I thank you, Sir.

 

Mr Musonda (Kamfinsa): Mr Speaker, I think my question on the contribution of other smaller sub-stations in the affected areas has been partly answered by the hon. Minister.

 

THE PRICE OF MEALIE MEAL IN THE COUNTRY

 

The Minister of Agriculture (Ms Siliya): Mr Speaker, I thank you for giving me the opportunity to deliver a ministerial statement on the price of mealie meal in the country. This statement has been necessitated by the question raised by Hon. Chibanda during Her Honour the Vice-President’s Question Time on Friday, 18^th November, 2016. Let me state that the Government has also observed the increase in mealie meal prices.

 

Sir, currently, the national average price of a 25 kg bag of breakfast mealie meal is around K90, while that for roller meal is between K65 and K70. I am aware that in some outlying areas, the prices are even higher. The increase in mealie meal prices during the period from November to April this year is a normal phenomenon and is a result of the increased demand for the commodity in the open market. The increased demand for mealie meal during this period is due to the decline in maize stocks for most households and the affected households increasingly rely on purchasing mealie meal from the open market.

 

Mr Speaker, despite the current increase in the price of mealie meal locally, it is worth noting that the price still remains much lower than those prevailing in the region. In the first week of November this year, the prices of mealie meal and maize in the region were as follows:

 

       Country/City                                Breakfast                                     Breakfast

                                                           US$/25 kg                                   ZWK/25 kg

                              

       South Africa                                    14                                           140

       Kenya/Mombasa                              12.5                                         125

       Malawi/Lilongwe                             16                                            160

       Mozambique/Beira                           15.2                                         152

       Mozambique/Maputo                       18.5                                        185

       Zambia/Lusaka                                  9                                              90

       Zimbabwe/Harare                            17                                            170

 

Mr Speaker, the Government has been heavily subsidising maize production at various stages of the maize value chain. At the production stage, the Farmer Input Support Programme (FISP) subsidy of K1,700 per farmer in the 2015/2016 farming season translates into a subsidy of K42.5 per 50 kg bag of maize produced per hectare. At the marketing stage, the Food Reserve Agency (FRA) spends an additional K30 per bag on storage, transportation and fumigation. The FRA does not pass these costs onto the millers.

 

Sir, currently, the price of mealie meal in Zambia does not reflect all the associated costs on the maize value chain, including the farmer’s investment and his/her expected return on investment, the Government’s investment, through the FISP and the FRA, and the expected return on investment and the miller’s investment and return, and all the costs associated with the wholesale and retailing of the commodity. For instance, between November, 2015 and November, 2016, the FRA supplied a total of 853,767 metric tonnes of maize at K1,700 per metric tonne against a market price of K2,120 per metric tonne, resulting in a loss of approximately K358,581,980.40.

 

Mr Speaker, in order to address the challenges faced in relation to mealie meal prices annually, the Government has come up with short and long-term measures in setting maize and mealie meal pricing. This entails coming up with tough decisions which will result in making savings in the long run which can then be channelled towards subsidising and increasing production. This would result in having economies of scale which would further result in a decrease in mealie meal prices.

 

Sir, we have seriously taken into consideration the impact of the strategies on the wellbeing of poor and vulnerable communities, and households in the country. We have also considered implementing the following short-term measures to address the issue of rising mealie meal prices in order to safeguard the poor households:

 

1. increasing community sales of maize through the FRA, especially to communities and households of need. This will be done in conjunction with the Disaster Management and Mitigation Unit (DMMU) in the Office of the Vice-President;

 

1. increasing maize sales to the solar milling plants that have been established across the country under the Zambia Co-operative Federation (ZCF); and

 

1. the FRA giving special allocations for education and health institutions, prisons and other institutions, as required.

 

Sir, to sustainably address the challenges in the pricing of maize and mealie meal faced by producers and consumers, the Government, through the FRA, will implement the following measures in the 2017/2018 marketing season:

 

1. paying farmers a producer price that covers the cost of production, including profit margins;

 

1. buying 500,000 metric tonnes of maize for strategic reserves;

 

1. setting the selling price of maize to millers which will reflect the full cost of purchase, transport, storage and fumigation, among others. This will ultimately have an impact on consumer prices;

 

1. encouraging the establishment of a mealie meal market that is efficient and diverse through crop diversification. This will include the production of blended mealie meal in order to cushion those who may not be able to afford 100 per cent maize meal; and

 

1. reviewing the existing legislation in line with the operations and mandate of the FRA.

 

Mr Speaker, these are some of the strategies that the Government will implement in order to stabilise agricultural marketing, particularly maize and mealie meal marketing.

 

Sir, it is time the Ministry of Agriculture focused on the business of agriculture. The planned realignment of Government expenditure in the maize value chain, that is, subsiding production and not consumption, should result in significant savings. Once again, the resources that the Government will save can then be channelled towards increasing production and improving productivity in the sector, especially through investment in extension services. This will result in lower costs of production and income for farmers and stable prices for consumers ultimately. Simply put, it will result in an efficient maize value chain.

 

I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Mr Speaker: Order!

 

Hon. Members are now free to ask questions on points of clarification on the statement given by the hon. Minister of Agriculture.

 

Mr Kopulande (Chembe): Mr Speaker, the efforts that the Government has made in addressing the high cost of mealie meal are appreciable. You may recall that in my maiden speech, I bemoaned the inconvenience that the people of Chembe have suffered due to the Government’s refusal to allow maize grain and maize meal to be transported through the Pedicle Road. As a result, the mealie meal, which is produced on the Copperbelt Province, particularly in Mufurila, is transported to Chembe via Serenje which is a distance of about 825 km instead of using the Pedicle Road which is 85 km. May I know why the people of Chembe have to suffer such an inconvenience that they now have to buy a 25 kg bag of mealie meal at K100 for breakfast and K90 for roller. Is this not a contradiction because Chembe is a highly deprived community with low incomes? Is there anything that the Government can do, in the short term, to ameliorate the effects of the high living of the people who are now being pushed towards finding other means of survival?

 

Ms Siliya: Mr Speaker, I appreciate the concern by the hon. Member of Parliament. However, let me state that this is a unique year. The fact that we are talking about banning of exports of grain at a time when there is such a huge market in the region is a clear demonstration that this is a unique year.

 

Sir, we were forced to set up a committee on maize which will decide on issues of maize movement in the country and beyond the borders in order to safeguard national food security in the country. The committee comprises all the security wings and is chaired by the Secretary to the Cabinet. It meets every day and I also chair the meetings once a week. 

 

Mr Speaker, this issue has been brought before the committee on several occasions. Indeed, it makes sense for a miller on the Copperbelt to buy grain from the Northern and Luapula provinces and transport it to the Copperbelt through the Pedicle Road. However, since we, as the Government, have made a decision to safeguard our national food security, we cannot take a risk by allowing grain to be transported to another country without the responsibility of our security wings. This is only for security reasons even though it does not make business sense.

 

Mr Speaker, one can argue that this has ultimately impacted the price of mealie meal. However, we had to make this decision because national food security comes first. In view of this, our advisors, the security wings, have clearly stated that we should effect the ban which includes not allowing maize to pass through another country as it comes into Zambia. Some millers have argued that they can provide their own security. This is not feasible because, ultimately, it is the responsibility of the Government to secure the grain. We also know that there is so much demand for maize, especially the Democratic Republic of Congo (DRC), that we run a risk of having Zambian trucks hijacked or having unscrupulous business people telling us that their truck broke down along the Pedicle Road in the DRC and could not move for one week. We would have no control over that.

 

Hence, we decided not to let the maize be transported through any borders in order to effectively manage its value chain. As much as it makes business sense, we had to take into consideration all the risks and decided to put a ban on the export of maize meal and grain so that we do not end up importing maize.

 

Mr Speaker, I thank you.

 

Mr Kopulande indicated.

 

Laughter

 

Mr Speaker: Order!

 

Just to give some counsel to the hon. Member for Chembe, unfortunately or fortunately, whichever way you may look at it, our rules do not allow you to ask a follow-up question.

 

Laughter

 

Mr Speaker: If it were so, quite frankly, there would be no end to the debate, as we could construct an endless dialogue. So, we normally encourage hon. Members to either look for support in their neighbourhood …

 

Laughter

 

Mr Speaker: … or engage further the hon. Minister outside the Chamber. Engage them in their offices and interrogate these serious issues until you find amicable and conclusive solutions. I do not underestimate their capabilities, but we have to find alternative platforms to conclude such issues.

 

Mr Mwiimbu: Mr Speaker, former Ministers of Agriculture have made similar assurances on the Floor of this House pertaining to the pricing of maize and mealie meal. We were assured that the Government was in charge and that it had put measures in place to forestall the escalation of mealie meal prices.

 

Hon. Minister, what difference is there between the measures that you have put in place and those that were put in place by your predecessors, which never saw a fall in the price of mealie meal?

 

Ms Siliya: Mr Speaker, what we have tried to do in the past is intervene at one point only in the maize value chain. We have intervened at consumption level by giving the sixty or seventy millers in the country subsidised grain so that they reduce the price of mealie meal. The cost of subsidising the maize is just under K360 million each year.

 

Mr Speaker, what is different now is that we have looked at the whole value chain so as to make smart subsidies. We now want to subsidise the producers or farmers so that they are rewarded appropriately. This means that the Food Reserve Agency (FRA) will not sell any maize to millers anymore. The millers will have to go to the market. In the event that millers buy maize from the FRA, they will have to buy it at a cost-reflective price so that we can save K360 million every year and, perhaps, re-invest it in production and extension services to increase production.

 

The question of whether or not maize should go over the borders is as a result of limited production, which has ultimately driven the prices of mealie meal upwards. If we increased production by making the right investment, we would enjoy economies of scale. For now, however, it is necessary for the Government to keep intervening in the maize value chain.

 

Mr Speaker, instead of the FRA focusing on cushioning the poor at community level by giving them maize, we focus on producing the 25 kg bag of maize. The question to ask is: Who eats the 25 kg bag of maize? Most people in rural areas keep grain which they buy cheaply and mill at the hammer mills. As the Government, we have to come up with interventions.

 

What is different with this new intervention is that we have removed consumption subsidies and focused on smart subsidies at production level only. By so doing, we have stopped subsiding the few millers because they are the only ones who are getting rich in this value chain. In the past, the Government’s subsidised millers. This pushed the price of mealie meal upwards or downwards, depending on the millers.

 

Mr Speaker, I thank you.

 

Hon. PF Members: Hear, hear!

 

 Mr Miyanda (Mapatizya): Mr Speaker, we were told on the Floor of this House, that any farmer who delivered maize to the Food Reserve Agency (FRA) would be paid within fourteen days. Some farmers who delivered maize to the FRA in July last year have not been paid to date.

 

Mr Speaker, according to the hon. Minister, the FRA will now provide maize to poor communities, as a short-term measure. How will this work? Will the agency give maize, which has not been paid for, to the communities, then, take it back for resale?

 

Ms Siliya: Mr Speaker, the late payment of farmers is a reflection of the inefficiencies in our maize value chain. In this country, we have about 1.6 million peasant farmers who produce food, especially maize, but have remained poor despite the support that the Government has continued to render to them. This means that the agriculture pyramid is burdened at the bottom and only a few people in agriculture make money at the top. Consequently, production among many peasant farmers has continued to remain low. Hence, food security is threatened because we are always dealing with small amounts of maize stocks for a country like ours that can produce up to 5 million metric tonnes of maize. When we produce beyond 2 million metric tonnes, we call it a bumper harvest. This is how we have failed to take advantage of the regional market. So, looking at the whole value chain, from production through to the possible export market, our farmer has no access to income.

 

Since the Government assists farmers through the Farmer Input Support Programme (FISP) on one hand and, on the other hand, goes back to bite the same farmers, it is losing at two levels. Money that can be used to sink boreholes and construct schools in constituencies is used to pay farmers through the FISP and, later on, as payment for the maize. This is why farmers are never paid on time. Late payment of farmers has become a norm.

 

Sir, instead of the FRA selling a 50 kg bag of maize to the miller at K143, it is being sold at K85. So, the Government incurs losses at FISP, when buying from the farmers and by subsiding the millers. Should it be shocking that there is no money now to pay the most important people, the farmers or producers? 

 

Mr Speaker, we now want to review the value chain. We want to pay the farmers the right price for their maize by buying only 500,000 metric tonnes of maize. We shall not lose money by selling maize to the miller at a cheaper price. We are going to sell it at the right price so that we also have money to pay the farmers.

 

Mr Speaker, I said earlier on that we must pay the farmers the right amount of money. Normally, we determine what we are going to pay the farmer purely based on politics or emotion. We have to re-evaluate the investment of the farmer in relation to production and negotiate the right price to pay him/her. The farmer produces food for us. So, let him/her be rewarded for his/her work.

 

Sir, when we reward the farmer, other things will fall in place because there will be increased production. Our cry has been to have the poor farmer paid the right amount for his/her maize. We pay farmers so little that they it cannot take care of their needs the whole year. The biggest challenge for many of us hon. Members from rural constituencies has been to support our constituents when they can actually take care of their needs through farming.

 

 I thank you, Mr Speaker.

 

 Hon. Members: Hear, hear!

 

 Mr Muchima (Ikeleng’i): Mr Speaker, can the hon. Minister shed more light on the installation of the solar milling plants. It was announced that the Government would install the solar milling plants in most parts of the country in order for the prices of mealie meal to come down.

 

The hon. Minister of Finance also announced that the export of maize will be allowed next year on condition that the exporter pays 10 per cent tax. However, today, the Government is talking about subsidising the production of mealie meal. What will be the economic market price of the mealie meal, considering all that has been said?

 

 Mr Mwiimbu: Hear, hear!

 

 Ms Siliya: Mr Speaker, I have said that the above-mentioned measures will be implemented in 2017/18.

 

Sir, I wish to repeat the issue of the maize-value chain. Before maize is milled into mealie meal and packed in a 25 km bag or before it is taken to the mill, it has to be produced. So, what goes into that production for the commercial farmers? Of course, they have their own considerations such as labour, irrigation and all the costs associated with the production of maize. For us as the Government, the first inputs are the seed and fertiliser that is provided through the Farmer Input Support Programme (FISP). So, when we say that the inputs cost the Government so much, it simply means that it cost the people of Zambia.

 

Sir, the Government has invested K2.8 billion in FISP for 2017/18 the farming season. In so doing, the investment by the farmers in terms of labour and other associated issues has not been factored in. Thereafter, we have to ask ourselves whom we want to reward in the maize value chain. Most of us have always said that the poor farmer should be rewarded first. We even refer to them as peasant farmers. So, if the farmer graduated to the next level and became an emerging or industrious farmer, he/she would now buy farming inputs from the market and that would enable us to release the K2.9 million FISP which we would use to install a power plant in Ikeleng’i. To do this, we have to ask ourselves what to do first.

 

Sir, first and foremost, we have to support the farmer for a limited period. The suggestion in the document was that a farmer should be supported and weaned off within three years. So, let us support the farmer by ensuring that he/she is paid a cost-reflective price for his/her work. Hopefully, we can begin to track this/her income to ensure that the farmer graduates to the next level, instead of making huge investments, but the farmer is not paid in the final analysis. If that be the case, there shall always be ‘poor relatives’ in the villages.

 

Sir, the Government has planned to install 2,000 solar mills. It took almost fourteen months to conclude the financing agreement. That is what has delayed the implementation by the Ministry of Commerce, Trade and Industry. Although I know that so far, about 200 solar plants have been installed. There are still some more to be installed. Therefore, my message to all the hon. Members of Parliament is that the solar mills are demand-driven. Please, encourage your people to apply for the solar mills. While we try to address the production challenges by subsidising production, we are also weary of the fact that there are poor communities. Even here in Lusaka, there are areas where there are hammer mills for people to grind mealie meal cheaply.

 

Mr Speaker, in rural areas, most people do not buy the 25 kg maize. Instead, they grind their maize into meal-meal or take it to the mills. So, to remove subsidies on consumption, the Government had to come up with a social programme on the side by putting up solar mills so that when people from poor areas cannot afford to buy a 25 kg bag of mealie meal from the shop, they can buy cheaper maize from the Food Reserve Agency (FRA) since the Government will not subsidise the rich millers.

 

Sir, at the moment, whether one is a Members of Parliament, ambassador of whichever country or lives in Shang’ombo, as long as he/she lives in Zambia, he/she is receiving the same amount of subsidies. Everyone is buying food at the same price. This is not sustainable. While we are all focused on maize meal, it is not sustainable. Let us focus on producing other foodstuff, including blends like cassava-maize which will also create jobs for people. All these interventions are aimed at increasing productivity, cushioning the poor, supporting the farmer and creating an efficient maize value chain which will enable all of us to save money that can be channelled towards other uses.

 

I thank you, Mr Speaker.

 

Hon. Government Members: Hear, hear!

 

Mr Kabanda (Serenje): Mr Speaker, it would appear that the hon. Minister has actually ventilated most of the issues that are being raised on the Floor of the House. Nevertheless, my point of departure is that I would like to know what the key performance indicators are, which have culminated into the Government’s decision to increase the budgetary allocation to FISP when we know that this project is not feasible.

 

Ms Siliya: Mr Speaker, I am not so sure whether I heard the hon. Member’s last word. Did he say FISP or not feasible?

 

Mr Kabanda: I said feasible.

 

Ms Siliya: Sir, I wish to repeat what I said. Maybe, I will be clearer.

 

Mr Speaker, the Government has the responsibility to grow the private sector which includes manufacturers and farmers. Therefore, farmers should be rewarded appropriately for us to clear the inefficiencies in the agriculture sector.

 

The Government also understands that it has a social responsibility to the vulnerable in society. In this regard, it shall continue to support the private sector and the farmers who are industrious through the Farmer Input Support Programme (FISP). The FISP allocation has been increased to K2.9 billion so that farmers can also increase production. Farmers are also being encouraged to diversify into growing other crops such as orange maize, cotton, groundnuts, sunflower, soya, mix beans, rice and cassava that have been included in the FISP.

 

Sir, if we implemented all the things that I have talked about, the ban on the exports of maize and other crops would be lifted because we are planning for increased production and productivity. Although we talk a lot about maize in this country, it is such an expensive crop to produce because the yields are low. On average, Zambian farmers produce about two metric tonnes of maize per hectare. In other countries, farmers produce about six to eight tonnes per hectare. Therefore, the cost of producing maize in this country is higher and our return is low. In the long term, we have to ask ourselves how long we are going to continue investing huge sums of money in this crop when the return is very low.

 

Mr Speaker, the Government has a responsibility to look after the people who cannot afford the basic needs of life through the Ministry of Community Development and Social Welfare and the Office of the Vice-President. It is possible for the Government to encourage the private sector to produce more on one hand and cushion the poor people on the other hand. Therefore, let us not have one size-fits-all kind of solution to this. We cannot have the same price of mealie meal for the poor and rich. That way, we shall not be able to develop the country.

 

I hope that I have now provided some clarity.

 

I thank you, Sir.

 

Mr Daka: Mr Speaker, who is cushioning the private sector players against the cost of inventory after banning it from selling its maize to whoever it so wishes, yet the Food Reserve Agency (FRA) can only buy 500,000 metric tonnes? The liberalisation of the maize market has precipitated production because the private sector offers a higher price than the FRA. If the private sector players are hoarding the maize they bought last year, there is an inventory cost. Is the Government looking at that?

 

Ms Siliya: Mr Speaker, the trend has been that the private sector offers a lower price than that offered by the FRA. This is a unique year in that what we have on the market are distortions by non-producers. These are speculators who saw an opportunity to come into Zambia to buy maize, because they could borrow money cheaply where they come from, so that they can export it in the region. That is what makes the situation unique. As such, it would be unthinkable for the Government to begin to cushion speculators The Government has a responsibility to the people of Zambia. We cannot allow people to export maize simply because there is a market in the region. Moreover, that money will not come to Zambia because the grain traders who participate in the business are not Zambians.

 

Mr Ngulube: Hear, hear!

 

Ms Siliya: I have not met a Member of Parliament or someone I know who is in this business. Instead, I have seen foreigners who have 700,000 metric tonnes worth of maize stocks. If we allow them to export the maize, the money will not come back to Zambia. What would we, the people of Zambia, achieve by allowing people from outside to come and buy our maize and export it at our expense? That is why we have talked about introducing a 10 per cent tax on maize exports. However, we have to be mindful of the fact that every time we export a bag of maize, we are losing a milling job.

 

However, going forward, our focus should not be on maize only. That is the message the Government is sending out there. We have to change the way we deal with matters relating to food. We should not only focus on maize, but also other crops. That is why we have included other crops in FISP.

 

Mr Speaker, I would like my hon. Colleagues to appreciate that this is a unique year. In the past, it was the FRA that took the lead in the pricing of maize. At the moment, the private sector seems to have a higher price for maize. However, I wish to repeat that most of the players in the private sector are not producers. They are purely speculators and the Government will not cushion them because we have to put the national interest first.

 

I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Interruptions

 

Mr Speaker: Order!

 

I can see that the interaction amongst hon. Members, both on my left and right, has increased in volume with the passage of time while the hon. Minister has carried on with her response.

 

Mr Chali (Nchanga): Mr Speaker, a few days ago, the print media reported that maize was exported to Malawi on a Government-to-Government arrangement. At what price per metric tonne was the transaction?

 

Ms Siliya: Mr Speaker, the only role that the Government played in this transaction was through the Ministry of Agriculture, of responding to the request from our neighbouring country in the spirit of good neighbourliness and to also honour a contract that had been signed before the ban on the export of maize was effected. Therefore, on a Government-to-Government basis, we have allowed the export of 100,000 metric tonnes of maize. The Malawian Government has engaged a private agent from Malawi, whose name I have forgotten, to facilitate the transaction between the two Governments. As a ministry, our role was purely to facilitate the export permit.

 

I thank you, Sir.

 

Mr Chaatila (Moomba): Mr Speaker, Zambia has been exporting maize to countries like Zimbabwe, which the hon. Minister made reference to in terms of price comparison. Now, I really do not know of what value the data she is giving us will be to the Zambian people who are largely producers of maize, as opposed to the countries which have been mentioned here. Is she not comparing mangoes to oranges?

 

Ms Siliya: Mr Speaker, I think this was purely a parity comparison for monetary purposes because we wanted to show the reason for the demand pull of our maize in the region. The price of maize in a country like Zimbabwe, whether it is from here or elsewhere, is always at a certain level and also pushes the price of mealie meal to a certain level. I think we must also demonstrate to our people in Zambia that the Government has done a commendable job of turning the FRA into a warehouse for millers for the whole year, thus depressing the price of mealie meal for quite a long time. I think that is the point I wanted to make.

 

I thank you, Sir.

 

Mr M. K. Tembo (Sinda): Mr Speaker, what measures have been put in place to prevent the smuggling of mealie meal from Zambia to our neighbouring countries, especially through the Kasumbalesa and Kazungula borders?

 

Hon. Members: Hear, hear!

 

Ms Siliya: Mr Speaker, the President appointed a committee on maize that has been monitoring the movement of maize within Zambia and beyond its borders since September. Like I said, this committee is chaired by the Secretary to the Cabinet. It meets every single day without fail and also monitors the movement of maize within the country.

 

I am happy to report that when I meet the members of the committee once a week, I get feedback on the wonderful job the State security wings are doing at some borders. There is security personnel on all the border routes, especially those leading to Zimbabwe and Malawi. Many trucks carrying maize grain have been impounded on these routes. On the Kasumbalesa Border, however, most of the trucks that have been impounded carry mealie meal, and not maize grain. People have gone to the extent of carrying bags of mealie meal on their backs or carrying them in car bonnets into the Democratic Republic of Congo (DRC).

 

However, I think the bigger question is: If there is a market for these commodities across the borders, why have we not responded through legitimate exports? It is because our production is low. When our neighbouring counties, particularly Malawi and Zimbabwe, produce more, it seems we also produce more. When there is a shortfall, however, we find that even the 2.8 million metric tonnes that we produced this year is nothing.

 

So, we have to close the borders and deny the private sector an opportunity to make money. That decision was not made lightly because we know that although some people are speculators, others borrowed the money to buy the maize and now, they are stuck with the diminishing stocks of maize and do not know how they will pay back the money. However, we have to consider all the factors at play, including our responsibility to the people of Zambia not to have shortages at all. This is why we are in this situation.

 

Mr Speaker, I thank you.

 

Mr Ngulube: Hear, hear!

 

Dr Musokotwane (Liuwa): Mr Speaker, what I have understood from the hon. Minister is that subsidies on mealie meal will be removed. The savings realised will be utilised for development, including putting higher subsidies on the Farmer Input Support Programme (FISP). The people of Liuwa will not benefit from that because the removal and adding of subsidies is not distribution neutral. The people of Liuwa will not benefit because there are no FISP activities or presence of the Ministry of Agriculture in Liuwa. In 2013, the hon. Minister’s predecessor said that the Government would remove subsidies on mealie meal and the savings realised therefrom would be channelled towards development programmes. During that period, not a single primary school was constructed in Liuwa. In other words, we did not benefit from the removal of the subsidies. Would the hon. Minister consider stating the quantity of savings to be realised from the removal of subsidies? Out of that amount saved, the Government can give X per cent to Liuwa and, maybe, increase the Constituency Development Fund (CDF) so that we can build schools, clinics and buy water pumps for the people. That way, we can rest assured that when we remove subsidies on mealie meal, the people will benefit in a real sense. However, if the removal of subsidies is going to be done as described, I am afraid, we are going to get nothing in terms of development as seen over a few years ago.

 

Ms Siliya: Mr Speaker, firstly, I am glad that the hon. Member of Parliament appreciates the principle behind the removal of subsidies. I think his point of departure is implementation. It is time we began to believe in ourselves. Once we agree on these principles, it will be critical for all of us to agree on what to do with the savings. For example, yesterday, I said that when I was in Chipata with the hon. Minister of Finance he made an on-the-spot decision to support projects that have been outstanding for the last three or four years. These are projects that are meant to support water supply in Chipata, which has been a problem for a number of years. He assured the people that they would get the money the following Monday. When asked where he was going to get the money from, he categorically said that it was going to come from the savings on fuel. If we agree on the principles, then, all of us will want to get something from the National Treasury to give back to our people, especially in Liuwa. We appreciate the challenges in the Western Province. Yesterday, I said that even agriculture cannot have one solution for the whole country. That is why in the Western Province, we have given farmers another form of support through the Cashew Nut Programme. We are taking US$55 million to the Western Province only. However, there will still be farmers who will grow maize and FISP is encouraging them to not only grow maize, but also rice. We should also pay them the right price for their produce so that they can have household economic security. I am happy that we agree on the principles behind the removal of subsidies. As for the issue of how the savings made from the removal of subsidies will be used, I am sure that as a former hon. Minister of Finance, the hon. Member for Liuwa can give his wise counsel to Hon. Mutati so that he can begin to redirect some of these savings to where he would like to see them.

 

I thank you, Sir.

 

Mr Zimba (Chasefu): Mr Speaker, if the consumer subsidies are removed, is the expenditure for the Farmer Input Support Programme (FISP) going to reduce or is the production subsidy going to increase?

 

Ms Siliya: Mr Speaker, I think that is a very important question because we have seen that over the years, the budgetary allocation to FISP has continued to increase and the number of beneficiary farmers has also increased. We have to ask what has been the return on this investment. We keep seeing that production levels are still minimal and the contribution of agriculture to the gross domestic product (GDP) still remains below 9 per cent, yet the Ministry of Agriculture is a de facto labour ministry because it employs over 70 per cent of the people in the country. If it employs so many people, how can it only contribute 9 per cent towards the GDP? Something is wrong and, when something is wrong, it does not matter how much we try to conceal it with make-up to make it look good because when the make-up has been removed, at some point it will show that something is wrong. So, we have to do the right thing ...

 

Hon. Government Members: Hear, hear!

 

Ms Siliya: ... by addressing the basic problem. What is wrong is that we have continued to put money in the FISP. Every year, the budgetary allocation for this programme goes up, but we still experience the problems that the hon. Member of Parliament for Liuwa talked about. Where are the schools and boreholes? Where are the rich farmers? There should be farmers driving beautiful Lamborghinis because they have been supported by the Government. Where are they? All we see in this value chain are millers and transporters making money while the farmer continues to be poor. This situation cannot continue. We must feel for our relatives and reward them. If you reward businesses appropriately, you increase investment and production. If you increase production, you have economies of scale. If you increase economies of scale, demand reduces. That is the ultimate situation. Of course, there will be other prevailing factors, but let us begin from somewhere. For a change, in 2017, we should make the farmer happy so that we focus on other things in 2018 and 2019. We cannot solve all the problems with one Budget. Let us begin from where it matters most and, that is, rewarding the farmer. When we reward the farmer, we can then look at those who are weak in society through the Ministry of Community Development and Social Welfare. Let us enable the farmer to make money and then we can share the money. Seventy per cent of the population are in the agriculture sector, but they contribute 9 per cent to the GDP. Mining contributes only 10 per cent to the GDP, yet there are few mining companies. Something is wrong with the scale. Let us do the right thing by focusing on agriculture.

 

I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Mr Sing’ombe (Dundumwezi): Mr Speaker, the hon. Minister is not fit to run this ministry ...

 

Hon. Government Members: Ah!

 

Interruptions

 

Mr Speaker: Order!

 

Let us not make aspersions. That cannot be an absolute statement, anyway. I know it is an expression of opinion, but let us be careful how we express the opinions.

 

Mr Sing’ombe: I withdraw the statement, Mr Speaker.

 

Mr Speaker: Very well.

 

Mr Sing’ombe: Mr Speaker, 2017 and 2018 will be a failure in terms of agriculture as a result of the delays in releasing inputs to farmers. How does the hon. Minister intend to improve in this area?

 

Ms Siliya: Mr Speaker, the hon. Member would have been better informed had he taken up the offer to have tea in my office.

 

Hon. Government Members: Hear, hear!

 

Mr Ngulube: Eh, ma offer!

 

Laughter

 

Ms Siliya: Mr Speaker, figures do not lie. We should have listened carefully when the hon. Minister of Finance told us that the country is going through a period of austerity and that we cannot spend what we do not have. The country has gone through a lot of economic shocks emanating from external factors and massive expenditure because of the elections. Generation of revenue by the Ministry of Finance has been a challenge because of the reduced economic activity in the country. Figures do not lie. So, this should separate emotions and personal opinions from facts.

 

Sir, I think the hon. Minister of Finance has done a tremendous job by not only keeping his commitment to the Ministry of Agriculture for 2017 and 2018, but also realising that the farming season is already upon us and we need to procure inputs like fertiliser and seed. The hon. Minister of Finance and I have met almost every day to prioritise the payments to farmers. By the time the Government had reconstituted after the elections, we owed the farmers almost K500 million. However, it has now been reduced to K150 million. We want to make sure that all the famers are paid before the peak of the farming season. This morning, the hon. Minister of Finance promised that all the farmers will be paid by next week.

 

Mr Speaker, we have already distributed 80 per cent ...

 

Interruptions

 

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

 

Ms Siliya: ... of fertiliser, especially Compound D. We concede that we have not done well with urea. However, we have talked to the suppliers and informed them that they cannot hold the Government to ransom because of payments. The hon. Minister of Finance is working hard to make the payments.

 

Sir, I am happy that we have dealt with the K133 million debt owed to the millers and the distribution of seed began this week. That is as far as input distribution is concerned.

 

Mr Speaker, I take it that when the hon. Member of Parliament says I have failed him, he is referring to his personal request for 200 bags of fertiliser.

 

Mr Speaker: Order! Order!

 

Hon. Minister, that statement has been withdrawn. Let us not proceed in that fashion. Please, continue, unless you have concluded.

 

Ms Siliya: I withdraw my statement that the hon. Member requested for 200 bags of fertiliser for himself.

 

I thank you, Sir.

 

Laughter

 

Mr Mbangweta (Nkeyema): Mr Speaker, the concern on our side is – which the hon. Minister herself has agreed to – that there are challenges associated with the Farmer Input Supply Programme (FISP), yet a big allocation has been proposed for this in the Budget for 2017. What is the basis for this? What we, on this side, feel is that the Government should have instituted a study, for instance, to delve into the issues associated with FISP and come up with recommendations on how to address them before increasing the allocation. I think that is where the problem is. Why has the Government not thought about commissioning a study which would inform policy decisions?

 

Ms Siliya: Mr Speaker, the hon. Member is right in that we all know that there are challenges regarding FISP, and I am the first to concede that. In my discussion with various stakeholders, including the Zambia National Farmers Union (ZNFU) this morning, we agreed that we could do things better. One of the glaring challenges is that of ascertaining who the 1.6 million farmers we give support to are. Sometimes, we are not even sure about this because there is no clear database. Even within the ministry, it is difficult to ascertain who will select the beneficiaries in Chilubi, for instance, how the beneficiaries will be picked and whether some of them are ghost farmers. This is why we came up with the e-Voucher system. However, this, too, has implementation challenges which we ought to address. Nonetheless, we are convinced that technology is the way to go.

 

Sir, we are working with the Indaba Agriculture Policy Research Institute (IAPRI) to address these issues and collect data that will inform our decision-making. However, at the same time, we cannot address what we do not know such as increased crop production, crop diversification and improved yields. We know that those are challenges and we felt that the best way to meet them would be to heavily support a list of crops other than maize in order to diversify. Last year, cassava was not even on the list of crops supported by FISP. How do we diversify the consumption of foods if we are not supporting crops like cassava? At least, we know that we are doing the right thing there. Implementation may be a challenge, but we have commissioned IAPRI to conduct a study for us. This, however, does not mean that we should not support what we know can work such as crop diversification and increased production.

 

I thank you, Sir

 

Princess Mwape (Mkushi North): Mr Speaker, do we have enough maize to last until the next harvest?

 

Mr Speaker: Hon. Minister, I think that is a very plain question.

 

Laughter

 

Ms Siliya: Mr Speaker, the country is not under any threat. Like I have said before, we have enough maize stocks in the country and we effected the export ban to ensure that they last.

 

I thank you, Sir.

 

Mr Munkonge (Lukashya): Mr Speaker, I am happy that the hon. Minister has attempted to identify the reasons behind the high prices of maize, one of which is the low yields. We should be in a position to have two harvests of maize per year, but we have not exploited that opportunity. If we had two harvests of maize per year, we would be able to meet not only the local demand, but also regional demand. Sometimes, I am surprised to hear that the entire industry has been demonised in the name of ‘rich millers’ when, in fact, they are only reacting to the circumstances they find themselves in. With urbanisation, we are going to need ...

 

Mr Speaker: Hon. Member, I have been quite liberal. Your preamble is long and winding.

 

Mr Munkonge: Mr Speaker, I apologise. Let me just put this point forward.

 

Mr Speaker: Yes!

 

Mr Munkonge: Mr Speaker, with urbanisation, we are going to need more and more industrial mills to cater for the urban population. People will not be able to take their maize to solar mills. As much as there are incentives for the entire maize value chain, I would also be interested to hear from the hon. Minister what incentives are being given so that more local millers can participate in owning industrial-size mills so that we have more ‘rich millers’ in Zambia.

 

Ms Siliya: Mr Speaker, the hon. Member of Parliament has raised an important point. The more players there are in the market, the better the competition. Competition is ultimately good for the consumer because it brings down prices. I always say that it is important for us to appreciate those facts. Firstly, it is important for us to change our attitude. For many of the players in the milling sector, I think that the challenge has been that of a lack of finances. I know of a Zambian who is trying to set up a milling plant in the North-Western Province, but is faced with the challenge of a lack of working capital, capital investment and so on and so forth. I keep urging the hon. Minister of Finance to use the carrot-and-stick approach on the commercial banks so that they take a chance on Zambians.

 

Sir, if the Government allocates a lot of money towards agriculture, the Ministry of Agriculture will put the money in commercial banks. If the commercial banks are making money out of money from the Government, that is, the money for the people of Zambia, the hon. Minister of Finance should impress upon them to reward the citizens, especially those who want to take opportunities in agriculture. Firstly, we need to solve all the problems by, for instance, mechanising agriculture and increasing productivity. Thereafter, we have to introduce irrigation systems. We cannot depend on rain-fed agriculture. Then, we should look at the types of fertiliser to be used. We should also decide whether it is just the usual Urea and D Compound to be used or we have to carry out further research in specific fertilisers.

 

Mr Speaker, there are also issues of warehousing. We have been talking about increasing production and productivity, but do we have the warehouses in which to stock the produce? That is another business opportunity for citizens that the commercial banks can finance.

 

Sir, the final stage in the value chain is agro processing. That should be the whole value chain to transform agriculture in this country. So, we should know the stage of the value chain at which to intervene. That point is much appreciated and I think the hon. Minister of Finance is listening attentively.

 

I thank you, Sir.

 

Mr Kafwaya (Lunte): Mr Speaker, I have to commend the hon. Minister’s sense of fashion. She really does look classy today.

 

Hon. Members: Hear, hear!
 

Mr Kafwaya: Mr Speaker, is the Farmer Input Support Programme (FISP) designed to be perpetual or it is going to end after it has achieved its objectives? If so, when is it likely to end?

 

Ms Siliya: Mr Speaker, I am grateful for the compliment by the hon. Member of Parliament for Lunte.

 

Hon. Government Members: Hear, hear!

 

Ms Siliya: Mr Speaker, I agree with the hon. Member of Parliament that there may be flaws in the original design or implementation of FISP. The objective of the FISP was to support small-scale farmers so that they can graduate from being peasant farmers to another level. Clearly, after many years of implementation, we still do not know who has graduated. Maybe, it is because we do not have efficient data. That is why we have asked the Indaba Agricultural Policy Research Institute (IAPRI) to carry out a study for us and collect data on income growth among the households that are supported by FISP. That is the first thing that we have done.

 

Sir, even as we wait for that, we have to make decisions on how long we can support a farmer. We do not think that a farmer should be supported for more than three years. That was the thinking when FISP was designed. However, the support is in perpetuity. We now have to make those tough decisions because in times of austerity, you have to cut your coat according to the cloth. We are saying that if we supported so many farmers this year and gave them a chance to grow not only maize, but also cash crops such as cotton and sunflower that are on the FISP list, would this help the farmers to be food secure and earn an income that can enable them to look after their children and have a surplus to save? We all know that an economy needs savings. Even at household level, you must have savings. If you are living from to hand to mouth, you will have nothing to leave your children when you die. So, we must have savings.

 

Therefore, Mr Speaker, we have to create an opportunity for farmers to begin to have maize for consumption and sale. They should also produce other crops so that they can have a real income at household level. At the moment, we are interrogating all these issues because they are critical. I can assure you that the Zambia National Farmers Union (ZNFU) and other stakeholders are committed to getting this right. That is why we have come up with the tough decision of removing consumption subsidies and increasing production subsidies.

 

I thank you, Sir.

 

Mr Speaker: Are you able to indicate when the programme will end? I think that was part of the question.

 

Ms Siliya: Mr Speaker, I apologise. Honestly, I cannot tell at the moment. I will have to come back to the House once I have been informed by the studies that are being conducted currently, especially by IAPRI.

 

Mr Ngulube (Kabwe Central): Mr Speaker, I am aware that there have been many complaints of fraud in the administration of the Farmer Input Support Programme (FISP). This necessitated the introduction of the electronic Voucher system (e-Voucher system) in order to reduce on fraud. When will the people of Kabwe Central get their solar hammer mills so that the prices of mealie meal can reduce? When the programme started, a number of constituencies were given solar hammer mills, but Central Province has not received a single one. As a result, mealie meal prices are higher than they are in Lusaka and on the Copperbelt.

 

Hon. Members: Hear, hear!

 

Ms Siliya: Mr Speaker, the distribution of solar milling plants are a responsibility of the Zambia Co-operative Federation (ZCF) in the Ministry of Commerce, Trade and Industry. As a member of the Cabinet, I recall that the hon. Minister of Commerce, Trade and Industry clearly made the point that it was important to understand the installation of the solar milling plants would be demand driven and that out of the 2,000 solar milling plants only about 200 have been installed. I wish to urge the hon. Member of Parliament to follow up with the ZCF in the Ministry of Commerce, Trade and Industry.

 

I thank you, Sir.

 

Mr Ngulube: Hear, hear! Tamulelumba abanenu? Nshile moneka bwino?

 

Mr Mecha (Chifunabuli): Mr Speaker, I am elated by the news that the Government is going to remove the consumption subsidy. I have actually been advocating for this. This is an important cost-saving measure for the nation. However, the pronouncement by the hon. Minister is not reflected in the Budget Speech which was delivered by the hon. Minister of Finance. I would like the hon. Minister to comment on the disconnect between what she is contemplating doing in 2017 and what the Ministry of Finance has captured in terms of cost-saving measures.

 

Ms Siliya: Mr Speaker, the Government is one entity and we are all part of the Governemnt, including the hon. Members of Parliament and the people of Zambia. At any given time, the Government has to review the situation and see how it can best serve the people. While the Ministry of Agriculture leads the promotion of agricultural activity in the country, we require a number of enablers, including the Ministry of Finance. So, we are in constant consultation and I am sure that as we continue to engage the hon. Minister of Finance he, too, will make an appropriate statement. The decisions are not made by the Minister of Agriculture alone. They are made by the Government, through Cabinet, and the Minister of Finance sits in that Cabinet.

 

I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Mr Kamboni (Kalomo Central): Mr Speaker, the hon. Minister of Agriculture mentioned that Chipata had water problems and the hon. Minister told the people that he would solve them using money that would be saved from the removal of subsidies. Was that in the Budget or it is just an expenditure on impulse?

 

Sir, on a lighter note, it is raining. So, can we, please, kick-start the e-Voucher system because the farmers are waiting?

 

Mr Speaker: I do not think that I will request the hon. Minister to answer that question. She was just giving an example of responsiveness. That is all. I do not think that it is necessary for us to now go into the details of the water problems in Chipata in the context of this statement.

 

Mr Nanjuwa (Mumbwa): Mr Speaker, my question has been covered by the hon. Member of Parliament for Kabwe Central.

 

_________

 

QUESTIONS FOR ORAL ANSWER

 

C400 ROAD PROJECT

 

14. Mr Ng’ambi (Chifubu) asked the Minister of Housing and Infrastructure Development:

 

(a)        when the implementation of the C400 Road Project on the Copperbelt Province would commence;

 

(b)        what had caused the delay in commencing the project;

 

(c)        whether the funding for the project had been secured; and

 

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

 

The Minister of Housing and Infrastructure Development (Mr Chitotela): Mr Speaker, it is expected that the works on the C400 Project on the Copperbelt will commence by April, 2017, upon the conclusion of the financing arrangement.

 

Mr Speaker, the delay in the commencement of the project is because the Government and the contractor are still in the process of finalising the financing arrangement for the project. They are expected to conclude in the first quarter of 2017 and works will commence in April of the same year.

 

Mr Speaker, the funding for the project is being arranged through the China Development Bank of China.

 

Sir, the project will be executed within three years from the date of its commencement.

 

Mr Speaker, I thank you.

 

Mr Mwiimbu (Monze Central): Mr Speaker, the hon. Minister of Finance informed this House and the nation that only on-going projects will be financed and that there would be no financing of new ones. I would like to find out whether there is a variation pertaining to this project which will benefit the good people of the Copperbelt and, if there is, why are the projects in other provinces not varied?

 

Mr Chitotela: Mr Speaker, if my memory serves me well, the hon. Minister of Finance stated that we shall prioritise projects of high economic value, including the new ones that the ministry responsible for infrastructure development feels will benefit the people of Zambia and will bring returns on investment. We shall implement such projects, whether they are new or ongoing.

 

Mr Speaker: Order!

 

Business was suspended from 1615 hours until 1630 hours.

 

[MR SPEAKER in the Chair]

 

MKUSHI TOWNSHIP ROAD PROJECT

 

15.  Princess Mwape (Mkushi North) asked the Minister of Local Government:

 

(a)        why the project of upgrading township roads in Mkushi had been abandoned despite the contractor being paid more than 50 per cent of the contract sum;

 

(b)        how much work, in percentage terms, was still outstanding;

 

(c)        what the time frame for completing the outstanding works was; and

 

(d)        what the way forward on the project was.

 

The Minister of Home Affairs (Mr Kampyongo) (on behalf of the Minister of Local Government (Mr Mwale)): Mr Speaker, the upgrading of the township roads in Mkushi has stalled following the contractor’s poor management of resources after he was paid for the works done.

 

Sir, the outstanding amount of works is 60 per cent and the project is expected to be completed in 2018.

 

Sir, the process to terminate the contract has commenced and the ministry will procure another contactor when it has been exhausted.

 

Mr Speaker, I thank you.

 

Mr Muchima (Ikeleng’i): Mr Speaker, it is not unusual to have contractors abandoning projects under the Patriotic Front (PF) Government. I thought that the best contractor was picked during the tendering process. How come the contractors are abandoning works? What could be wrong?

 

Ms Lubezhi: Hear, hear!

 

Mr Kampyongo: Mr Speaker, I would like to thank the hon. Member for that follow-up question. It is not the correct impression that contractors under the PF Government are abandoning projects. Yes, there are contractors who have performed according to their contractual obligations. Conversely, some contractors, like the one in question, have disappointed the Government. This is a local Zambian contractor who abandoned the contract.

 

Mr Speaker, as the Government, we have been trying to give an opportunity to local contractors to participate in this type of projects. They are the same people who have been complaining that the Government awards contracts to Chinese contractors. The abandoning of contracts is one of the reasons for not opting for local contractors. When contractors tender for works, there are stipulated requirements which they must meet before a contract is awarded. At the point of procurement, assessment and tender evaluation, a contractor would meet all the obligations but, when it comes to implementation, they perform to the contrary. That is why the Government always ensures that there is some form of security when awarding contracts.

 

Sir, when a project is abandoned, the Government does not only lose money, but also time in terms of project implementation. However, we shall revoke what the contractor has put up as performance guarantee because that is what it is meant for. In case of failure by the contractor to perform, the financial document to secure Government resources is revoked. So, that is what is going to happen in this instance.

 

Mr Speaker, I thank you.

 

Mr Lufuma (Kabompo): Mr Speaker, notwithstanding the answer given by the hon. Minister, I would like to find out what long-term measures the Government has put in place to forestall the abandoning of projects by contractors regardless of the party in power. Zambian contractors do not perform well and they abandon projects midway. I know that the money will be recouped, but that is not the solution. We want Zambian contractors to perform so that the money remains in the country. What long-term measures are put in place to ensure that local contractors do the job, finish it and the money remains in the country to develop and grow the economy.

 

Mr Kampyongo: Mr Speaker, I wish to thank the hon. Member for that important question. To some extent, he has provided a response to the same concern.

 

Mr Speaker, the desire of the Government is to have its own people participate in the economic activities of the nation. Contracts to do with roadworks and developing infrastructure are areas where we expect most of citizens to participate in because, like the hon. Member has said, the money will be retained in circulation. We would like to have as many local contractors as possible taking up jobs and building capacity so that they can get major contracts and not just work as sub-contractors. Not all local contractors abandon their works. Our desire is that local contractors develop capacity. There are many interventions that the Government has put in place like the Citizens’ Economic Empowerment Commission (CEEC) which is meant to empower people. If it is a question of procuring heavy equipment, the local contractor can access loans to procure the equipment and perform to the expectation of the Zambian people.

 

Mr Speaker, going forward, we shall continue to encourage local contractors to build capacity. As the Government, we are at their disposal. The hon. Minister of Finance announced the allocation to small and large-scale entrepreneurs. That is what we intend to do as the Government. We cannot abandon local contractors because that will not be the best solution.

 

I thank you, Mr Speaker.

 

Princess Mwape: Mr Speaker, the people of Mkushi would like to know when the contract is going to be terminated because it has caused a lot of anxiety.

 

Mr Kampyongo: Mr Speaker, we sympathise with the people of Mkushi. The reason we procured the contract on roads was to help the people. However, it is difficult for me to state when the process of terminating the contract will be exhausted because there are a number of factors to be considered such as the obligation of the contract so that we avoid other legal encumbrances that may delay the commencement of the works. We want to make sure that all the necessary obligations in the contract are met. As soon as that is done, the new contractor will be procured and the people of Mkushi will be informed as and when this new contractor will get on the ground.

 

I thank you Mr Speaker.

 

Ms Miti (Vubwi): Mr Speaker, we have seen instances where contractors who abandon works ‘jump’ from one contract to another. Today, you will hear that they are in Vubwi, they abandon a contract there and the next time you hear that they are in Milenge on another project. Hon. Minister, are the contracts legally bound? If they are, why do we have instances where contractors ‘jump’ from one unfinished project to another?

 

Ms Lubezhi: Hear, hear!

 

Mr Kampyongo: Mr Speaker, I want to thank the hon. Member for that interesting question. Yes, there has been this tendency by some greedy Zambian contractors who want to take more than their hands can carry. In the end, they fail to perform. Before one can grow capacity, they want to participate in this and that contract. As the Government, we have started the process of blacklisting contractors who fail to perform in order to curtail this behaviour and give opportunities to contractors who are capable of performing to the expectation of the citizens.

 

I thank you, Sir.

 

Mr Zimba (Chasefu): Mr Speaker, other than the Government retrieving its monies from the terminated contracts, are there other punitive measures that the Government takes? Since the hon. Minister said that the Government loses time through terminated contracts, are there any other punitive measures that are taken to deter such occurrences.

 

Mr Kampyongo: Mr Speaker, like I said earlier, other than just evoking the performance guarantees, there are liquidated damages which are calculated and slapped on the contractor for the cost that the Zambian Government could have incurred. This is because any delay in the implementation of a project is a cost. So, the liquidated damages are also slapped on the contractor. Other than opting to drag the contractors to court, these measures are sufficient enough.

 

I thank you, Sir.

 

Mr Ngulube (Kabwe Central): Mr Speaker, I am aware that one Zambian contractor was awarded contracts for roads in Kabwe, Mkushi, Kapiri Mposhi, Kasempa and many other areas. However, the standard of works that the contractor put up leaves much to be desired. There were potholes on the roads after two months of tarring them. Notwithstanding the fact that his contract might not be revoked, will such Zambian contractors who waste Government resources by producing shoddy works to the detriment of the community be allowed to bid for similar works?

 

Mr Kampyongo: Mr Speaker, it might not be true that the contractor who worked in Kabwe is the same contractor who worked in Mkushi. Having been at the Ministry of Local Government at the time these works were being done, I know that the works in Kabwe were done by Asphalt …

 

Mr Ngulube: Roads Zambia.           

 

Mr Kampyongo: … Roads Zambia Ltd and the contractor who undertook works in Mkushi was Keren Engineering Company. Like I said earlier, when a contractor underperforms, the same performance guarantee is applicable. There is also a liability period after the job has been completed. This period binds the contractor to remedy some of the defects that might crop up after the completion of the works. The issue of potholes is then covered and taken care of. Like I said, the contract covers all the aspects where the contractor does not perform in accordance with the terms in the contract. I have further stated that when we discover that contractors have a perpetual habit of not performing in accordance with the contractual obligations, we blacklist them. That is what we do to some of the contractors.

 

Mr Speaker, I thank you.

 

CHIEFTAINESS KANYEMBO’S PALACE

 

16. Mr A. Malama (Nchelenge) asked the Minister of Chiefs and Traditional Affairs:

 

1. when the construction of Chieftainess Kanyembo’s Palace in Nchelenge District, which commenced in 2015, would be completed;

 

1. who the contractor for the project was;

 

1. what had caused the delay in completing the project; and

 

1. what the estimated cost of the project was.

 

The Minister of Chiefs and Traditional Affairs (Mr Sichalwe): Mr Speaker, the construction of Chieftainess Kanyembo’s Palace, which encompasses the main house and queen’s quarter and is currently standing at wall plate level, is earmarked for completion in 2017.

 

Sir, the contractor of this project is Pavesi Marketing and General Contractors Ltd.

 

Mr Speaker, the delay in the completion of the palace has been caused by factors such as budgetary constraints.

 

Sir, the estimated cost of the project is K1,140,054.

 

Mr Speaker, I thank you.

 

Mr A. Malama: Mr Speaker, I presume this estimate was for 2015. Did the hon. Minister make a provision in the 2017 Budget for the completion of the project, bearing in mind the overheads that the contractor might request?

 

Mr Sichalwe: Mr Speaker, indeed, we have incorporated the completion of Phase I of the project of constructing palaces in the 2017 Budget. Phase I encompassed ten provinces and each province provided three palaces. They are all at different levels of construction and we have prioritised the completion of Phase I of the project of the construction of palaces in the 2017 Budget.

 

I thank you, Mr Speaker.

 

Mr Muchima: Mr Speaker, I am happy to hear that the construction of the chiefs’ palaces will be completed in 2017. I have in mind Chieftainess Ikeleng’i’s Palace which is still at foundation level. How many other palaces in the North-Western Province are on the list to be completed in 2017?

 

Mr Sichalwe: Mr Speaker, in the North-Western Province, we had earmarked the construction of three palaces. These comprise Kalilele, which is at super structure and is almost complete and only needs 200 blocks for the structure to be completed, Ikeleng’i, which is at box level, and Kucheka, which is at costing level for the full contract to be considered.

 

I thank you, Mr Speaker.

 

Mr Speaker: As we progress, please, let us bear in mind the location referred to in the question. Let us not take the hon. Minister wherever we want him to go.

 

Mr Lufuma: Mr Speaker, the hon. Minister has mentioned that there are three palaces that were supposed to be constructed in the North-Western Province, with Kucheka being one of them. Kucheka Palace was among the first to be earmarked for construction. I am surprised to hear that it is at costing level. Why is it still at this level?

 

Mr Sichalwe: Mr Speaker, I would have to come back to the House with a more detailed response to that question because we have written to all the provinces for an update on why the palaces are standing at their current position despite funds having been released to all the ten provinces in 2014.

 

I thank you, Mr Speaker.        

 

Dr Musokotwane (Liuwa): Mr Speaker, the hon. Minister mentioned that palaces that are in Phase I of the construction of palaces are at various levels of development. The palace at Libonda Royal Village in Liuwa is in Phase I, but the construction has not commenced. Could the hon. Minister explain why despite being in Phase I of the project, nothing of any sort has been done at this palace since 2013 or so.

 

Mr Sichalwe: Mr Speaker, what I have under Phase I for the Western Province is Imwiko, Kandala and Kahare palaces. I would like to ask the hon. Member to give us more details about the palace he has referred to. 

 

I thank you, Sir.

 

MULTI-FACILITY SPORTS COMPLEX IN NYIMBA

 

17. Ms O. Phiri (Nyimba) asked the Minister of Youth, Sport and Child Development:

 

1. whether the Government had any plans to construct a multi-facility sports complex in Nyimba District;

 

1. if so, when the plans would be implemented;

 

1. if there were no such plans, why; and

 

1. what the estimated cost for such a project was.

 

The Minister of Youth, Sport and Child Development (Mr Mawere): Mr Speaker, the House may wish to know that the Government has no plans to construct a multi-facility sports complex in Nyimba District.

 

However, the House should note that the Government plans to construct modern sports facilities at national, provincial, district and community levels in order to increase access to modern sports infrastructure and equipment.

 

In this regard, the ministry is developing an infrastructure development plan that will guide the construction of modern sports facilities throughout the country, including Nyimba District. Once completed, the plan will be implemented in phases, subject to the availability of funds.

 

Mr Speaker, the estimated cost of putting up a district multi-facility sports complex is K25 million.

 

I thank you, Sir.

 

_______

 

BILLS

 

FIRST READING

 

THE SUPPLEMENTARY APPROPRIATION BILL, 2016

 

The Minister of Finance (Mr Mutati): Mr Speaker, I beg to present a Bill entitled the Supplementary Appropriation Bill, 2016. The object of the Bill is to authorise supplementary expenditure from the general revenues of the Republic monies required for the services of the Republic during the financial year ending 31^st December, 2016, not exceeding in the aggregate three billion, nine hundred and forty-nine million, six hundred and forty-four thousand and eight hundred and fifteen kwacha.

 

Mr Speaker, I thank you.

 

Mr Speaker: The contents of the Bill have already been considered in the Committee of Supply.

 

Thank you.

 

Second Reading on Thursday, 24^th November, 2016.

 

_______

 

MOTION

 

BUDGET 2017

 

(Debate resumed)

 

Mr Chibanda (Mufulira): Mr Speaker, I thank you for according me the opportunity to add the voice of the people of Mufulira Constituency to the Motion presented by the hon. Minister of Finance to this august House on 11^th November, 2016.

 

Mr Speaker, I commend the hon. Minister of Finance for his presentation of this ‘mild’ Budget. It is ‘mild’ in the sense that the people of Zambia expected a harsh Budget that would probably ground them into abject poverty. This is because of the talk that was going round the country concerning the prevailing economic situation, with many people purporting the economy to be on stand-still. Alas, this Budget was done with full consideration of the people of Zambia. It is a pro-poor Budget that is meant to address poverty as per the Patriotic Front (PF) Manifesto.

 

Mr Speaker, I wish to refer to one or two paragraphs in the Budget Speech of the hon. Minister of Finance. The 2017 Budget proposes to spend about K64.5 billion. Out of the total Budget, K19 billion will be funded by external financing. Clearly, this Budget is home-grown.

 

Hon. PF Members: Hear, hear!

 

Mr Chibanda: Mr Speaker, from the preamble, I can tell that this Budget was prepared by an accountant. The hon. Minister clearly states, in his speech, that we cannot borrow beyond our ability to pay back. 

 

Hon. PF Members: Hear, hear!

 

Mr Chibanda: Clearly, this is the language of an accountant. I know that the hon. Minister of Finance is an achieved accountant.

 

Hon. PF Members: Hear, hear!

 

Mr Chibanda: Mr Speaker, the people of Mufulira have a few comments on the Budget.

 

The hon. Minister has allocated K5.8 billion to the health sector, representing 8.5 per cent of the total Budget. Our concern is that this amount falls way below the Geneva threshold of 15 per cent. Out of K5.8 billion, K4.7 billion will go towards emoluments, while slightly over K1 billion will go towards medical supplies, drugs and infrastructure.

 

The people of Mufulira feel that the hon. Minister could have done slightly better, owing to the fact that the area is one of those meant to benefit from a new hospital, which is not yet complete. We, therefore, think that K1 billion should have been increased. We hope that in the forthcoming Budgets, the exchequer will consider pushing this amount higher. However, we wish to commend the hon. Minister for the over 2,000 jobs for the frontline medical staff that have been employed by the Ministry of Health.

 

Mr Speaker, the hon. Minister proposes to allocate K10.8 billion to the education sector, which is 16.5 per cent of the Budget. Out of this amount, he is suggesting that K8.4 billion goes towards remunerations, leaving a little for research and infrastructure.

 

Sir, I still feel that this allocation could have been better than this, as an educated nation is a healthy nation. Therefore, I feel that the research component should have been prioritised for our colleagues in the Ministry of Higher Education to add more value to the education sector.

 

Mr Speaker, still on the education sector, I feel that since a new ministry has been created to undertake the construction obligations of the country, the Ministry of Higher Education still has an obligation to complete some of the schools that are under construction.

 

Sir, I am from a constituency, which has schools that are in operation, but have no toilets. For instance, there are schools in the peri-urban part of my constituency where teachers and pupils share toilets.

 

Hon. Members: Ah!

 

Mr Chibanda: Sir, with that in mind, the hon. Minister of Finance should have allocated more towards this sector, knowing that he has a passion for education.

 

Mr Speaker, we all know that very little has been said about the energy sector. However, the people of Mufulira Central wish to request the hon. Ministers of Finance and Energy to include mining companies that the ordinary Zambian has been subsidising, when implementing cost-reflective tariffs for 2017.

 

Mr Speaker, with regard to the agriculture sector, may I commend the hon. Minister of Finance for heeding to His Excellency the President’s call, when he opened the Twelfth Session of this Assembly, to diversify the economy from a copper-based economy to an agriculture-driven one.

 

Sir, the hon. Ministers of Finance and Agriculture should be commended for being brave enough to give a humongous figure of K2.9 billion to the Fertiliser Input Support Programme (FISP). This clearly heeds to the His Excellency the President’s call to place the farmer at centre stage of the agriculture sector if we have to move from a mining-oriented economy to an agriculture-oriented economy.

 

Mr Speaker, I wish to commend the hon. Minister of Finance and my sister who is in a nice attire, for a job well done. You are a really hands-on hon. Minister.

 

Hon. Members: Hear, hear!

 

Mr Chibanda: Sir, in this regard, I wish to request the hon. Minister of Agriculture to put measures in place to evaluate the peasant farmers because year in and year out, they remain at peasant farmer level when they are supposed to be progressing to subsistence-farmer level and, eventually, commercial-farmer level. Therefore, I hope the hon. Minister of Agriculture will heed this advice and find ways and means of assisting the farmers.

 

Mr Speaker, I am aware that there was a question on the Floor of this House this afternoon by the hon. Member of Parliament for Lunte, asking how long FISP will assist the farmer. With the allocation towards FISP, I feel that it is important for the ministry to evaluate the farmers and see whether or not they are maturing, or else they shall perpetually remain peasant farmers.

 

Hon. Members: Hear, hear!

 

Sir, this country has a deficit of over three million housing units. Therefore, this should be looked at because we need shelter.

 

Mr Speaker, over 40 per cent of Zambia’s population has no access to clean water. We feel that more needs to be done in order to address the water situation in Mufulira Central because as the saying goes, “Water is life”. Therefore, this needs urgent attention. We also wish to see this ministry support the water utility companies in our respective towns with a view to improving the supply of water.

 

Sir, still on sanitation, I wish to say that 50 per cent of the rural population of this country has no access to proper sanitation. Clearly, more needs to be done, as sanitation is critical to the provision of good health care.

 

Mr Speaker, the people of Mufulira Central are excited about this Budget, as it has clearly pronounced that the C-400 Road Project will be completed. We are indebted to the hon. Minister of Finance for giving us our fair share of the road network. I would like to appeal to him to ensure that he fulfils his promise of ensuring that the three-year road contract is completed, considering that the Copperbelt is the commercial heart of this country.

 

Sir, in that vein, I would like to salute the hon. Minister of Finance for mentioning in his speech the construction of crucial roads like the Chingola/Kitwe Dual Carriageway, which has been progressing at a slow pace.

 

Sir, you may wish to know that there have been a number of fatalities on this road owing to the haulage that it carries. I, therefore, feel honoured that the hon. Minister of Finance has brought back memories of the olden days when we were together somewhere. Mentioning the construction of the Chingola/Kitwe Dual Carriageway clearly shows that he means well and should be supported by all Zambians.

 

Hon. Members: Hear, hear!

 

Mr Chibanda: Mr Speaker, let me talk about the companies that the hon. Minister referred to in the Budget Speech. He said that he was considering carrying out an evaluation of some parastatal companies to see whether or not they were viable. If not, they should be hived off. He called a spade a spade by saying that he was going to privatise the institutions.

 

Sir, as Mufulira Central Constituency, we support the Government’s intent as long as it is done to benefit the Zambians. We are aware that some Zambians got colossal amounts from the privatisation of some State-owned enterprises. Some of them have become so big that they are now vying for the Presidency of this country ...

 

Hon. Government Members: Hear, hear!

 

Mr Speaker: Order!

 

Let us have some order.

 

The convention is to avoid dragging people from outside into our debate. The reason for this is that they do not have the opportunity to deflect whatever accusations are levelled against them. So, we intend to encourage that debates deal with issues and not personalities.

 

You may continue.

       

Mr Chibanda: I thank you for your guidance, Mr Speaker, although I did not mention any names.

 

Interruptions

 

Mr Chibanda: Mr Speaker, regarding the privatisation process, our view is that institutions that will not be found economically viable be privatised with the Zambian in mind. Zambians have graduated from the level where they were in terms of business. So, they have to start investing in the companies themselves.

 

Hon. PF Members: Hear, hear!

 

Mr Chibanda: We know that there is a lot of skepticism regarding privatisation because it entails that the parastatal companies will be in foreign hands. In view of this, they should be privatised to the Zambians. We know that not all of them will be privatised. Those that will be found not to be economically viable should be privatised with the Zambian people in mind.

 

Mr Speaker, let me now go to a controversial subject, which is the cordon line, popularly referred to by a term I shall withhold.

 

Laughter

 

Mr Chibanda: Mr Speaker, history is the best teacher. We have realised that our colleagues that hail from the western part of the country are somewhat skeptical about the cordon line. They probably feel that the Ministry of Finance and the line ministry should have consulted them before allocating the money for the cordon line. However, since the money has already been allocated, the hon. Minister of Finance should consider dialoguing with them and take their concerns and requests into account when drawing up the 2018 Budget. In the meantime, the allocation should be diverted to Mufulira for the Ndola/Mufulira Road which has more economic value at the moment than the cordon line.

 

Interruptions

 

Mr Speaker: Order! Order!

 

Mr Chibanda: Mr Speaker, as I mentioned earlier, history is the best teacher. We know for a fact that the Government has allocated colossal sums of money to projects in some parts of this country that have not been appreciated. So, we feel that the people of the Western Province should be engaged in some form of dialogue and if they are agreeable, they will be considered in future budgets. For now, there are parts of this country that really need the allocation for the cordon line.

 

Mr Mukata interjected.

 

Mr Speaker: Order! Order!

 

Interruptions

 

Mr Speaker: Please, take a seat, hon. Member.

 

Mr Chibanda resumed his seat.

 

Mr Speaker: Let us have some order. You will have an opportunity to rebut that proposition if you want. You cannot do it while seated. Just as a point of guidance, the hon. Minister of Finance makes proposals in his Budget Address. That is why until virtually post mid-December, you will be debating the entire Budget, including the Yellow Book, and he is there listening. Therefore, he has the leverage, even at this juncture, to consider whatever is being debated.

 

So, as we debate, let us bear in mind that nothing is cast in stone. Allocations will only be cast in stone when the Appropriation Bill is converted into the Appropriation Act. That is the process that we follow. So, let us not stifle debate, directly or indirectly. That is the whole purpose of budget approval. Ultimately, it is a function of the Legislature. We are trying to improve the cycle so that the Parliamentarian’s role is much more effective than is the case at the moment. In case you do not know, your colleagues are looking at the Budget Estimates in the background. That is part of the process. Your colleagues, who are absent from this House are sitting in a Committee for that purpose.

 

Mr Livune interjected.

 

Mr Speaker: No, you must understand these processes. So, let us be accommodating in our debates. That is what democracy is all about. It is about tolerance.

 

Hon. Government Members: Hear, hear!

 

Mr Chibanda: Mr Speaker, having said all that, I would be failing in my duties if I did not commend the hon. Minister of Finance for paying special attention towards the payments of suppliers and contractors. Contractors and suppliers are owed colossal sums of money that have remained unpaid for a long time. This has made some of them ineffective because of failure to recapitalise their respective businesses. Therefore, this is a job well, hon. Minister of Finance. We feel that this is the way things ought to be.

 

Sir, contractors and suppliers must be eager to do business with the Government. They should not shy away from doing business with the Government because of the fear that they will never be paid. The paradigm shift means well for this country. It is with this in mind that we wish to recommend all the well-meaning Zambians to support this noble Budget for 2017. May the Budget be approved by all of us.

 

With these remarks, I thank you, Sir.

 

Hon. Government Members: Hear, hear!

 

Mr Jamba (Mwembezhi): Mr Speaker, I wish to add my voice to those of the many hon. Members who have debated this Motion. From the outset, I wish to state that there is a saying in my language that goes, amano yafuma mwifwesa yaya muculu. This means that the advice that comes from small people can also be taken into consideration.

 

Laughter

 

Mr Jamba: Mr Speaker, I have taken time to look at the Budget Address with keen interest. The proposals in the 2017 Budget are good, if only we would walk the talk. I think that the hon. Minister of Finance has driven the point home by stating that we cannot spend what we do not have. This is a good point.

 

However, it should be noted that there is a deficit in the revenue side of this Budget. This is an indication that we shall continue borrowing. Currently, our external debt stands at 35 per cent, while domestic debt is at12 per cent, bringing the total debt to 47 per cent of the gross domestic product (GDP). This shows that we shall continue borrowing and that, at some point, we may end up auctioning our country to creditors.

 

My humble request to the hon. Minister is that he should abolish borrowing. I agree with him that the 28.9 per cent lending rate for banks is high. What makes it high? I think it is the Government that makes it high because it is borrowing from the banks using Government bonds. When the Government reduces borrowing, the lending rate is going to go down. I understand that during the time of late President Mwanawasa, SC., the lending rates were at 4 per cent and 5 per cent. When we reduce the lending rate, the banks are going to be the ones chasing after people, encouraging them to get loans. However, as it is now, which bank can want to give me a loan when the bank knows I can die and they can lose their money? The banks are lending to the Government because they are sure that they are going to get back their money. The Government should desist from borrowing locally so that the cost of money can reduce.

 

Mr Speaker, let me quickly go to agriculture. I agree with the hon. Minister of Agriculture that we should stop subsidising farmers. The last time she gave a ministerial statement in this House, she proposed that the Government stops subsidising farmers. However, it appears this was not supported because the Farmer Input Support Programme (FISP) has been included in the Budget. It is better to introduce a programme that will enable farmers to quickly graduate from FISP. When the rainy season comes, you will find some shops in Soweto selling fertiliser. Where does that fertiliser come from? It comes from FISP. We should ensure that farmers graduate from FISP so that we do not continue spending money on them.

Let me come to the issue of the Cordon Line in the Western Province. Having a Cordon Line is not a bad idea. However, there are wild animals there that migrate all the time, hence that wire cannot be sustained. Let me put a proposal to the hon. Minister which can generate revenue for the country in two or three years. If we improve the programme of artificial insemination of animals and put barriers on either side of the wetlands of Kafue, the Kafue wetlands can produce over 30,000 head of cattle and we can sell it on the world market. Within three years, we can improve our revenue.

 

Sir, let me talk about industrialisation. The people who were born after 1990 may be surprised to hear about the Industrial Development Corporation (IDC). To me, the IDC is the same as the Zambia Industrial and Mining Corporation (ZIMCO) and the Industrial Development Corporation (INDECO). Without close supervision, this IDC can become a white elephant which will consume a lot of money, which could have been used to improve the economy. I would like to see an industry in Zambia which has been facilitated by the IDC and is flourishing. We have to monitor the IDC properly so that we ensure that what happened to ZIMCO and INDECO does not recur.

 

Mr Speaker, I am aware that mining is a big issue. In fact, in my constituency, there is an iron ore mine which is owned by the Universal Mining and Chemical Industries Limited (UMCIL). It is also the same company that owns a steel plant in Kafue and the steel produced there has been zero rated. The people of Mwembezhi are asking why the Government is milking a cow in Nampundwe and fattening another cow in Kafue. Industrialisation should be in all areas and not just certain areas. We need to improve the mining industry. The people in the areas where steel is processed should benefit. It was a good idea to have the steel processing plant in Kafue, but companies investing in Nampundwe and Mwembezhi should also have their products zero rated so as to improve industries in these areas.

 

Sir, let me quickly talk about energy. I wish to request the Government not to change their decision concerning subsidies. Today, the Government will say that it is doing away with subsidies and, tomorrow, it will say that they are being reinstated. The Government should be consistent with its decision. When there are inconsistencies, the people who want to invest in the economy may be discouraged to do so.

 

Sir, I commend the hon. Minister of Finance for bringing these ideologies here.

 

I thank you, Sir.

 

Hon. Members: Hear, hear!

 

Mr Speaker: He meant ideas.

 

Laughter

 

Dr Chanda (Bwana Mkubwa): Mr Speaker, thank you for giving me the opportunity to contribute to the debate on the Budget that was presented by the hon. Minister of Finance, whose theme was, “Restoring Fiscal Fitness for Sustained Inclusive Growth and Development.”

 

I wish to commend the hon. Minister of Finance for presenting a pragmatic Budget in challenging economic circumstances. We need to appreciate that Zambia’s economy is faced with some historic challenges which this Budget is trying to address. The hon. Minister’s Budget is in line with the President’s Speech for the Official Opening of Parliament, which challenged us to be pragmatic, visionary and change our mindsets from that of, “Business as usual, to business unusual.” The Zambian economy has faced a headwind. There have been various factors, both external and domestic, affecting the economy. Growth has been sluggish. If you look at the external markets, you will see that the global gross domestic product (GDP) has reduced. Many countries in the Eurozone, and China have had slow economic growth and our economy, which is dependent on copper exports, has not been spared. The price of copper declined by over 30 per cent and the country also has an electricity deficit which has affected productivity. The inflation rate was high  and reached a peak of 22.9 per cent by last year. We have had deteriorating factors in terms of ...

 

Mr Speaker: Hon. Member, can you assure me that you are not reading that script by putting it down?

 

Laughter

 

Dr Chanda: Mr Speaker, I was basically saying that our economy has faced various headwinds both domestically and externally. I have highlighted the challenges that the country was faced with locally because it is important to highlight the context in which the Budget is being presented.

 

Sir, the hon. Minister of Finance presented a great Budget, but what do we, as a nation, aspire to? The difference between the rich and poor countries is self confidence, vision and creativity. Zambia cannot afford to do the same things we did in the past. The great Albert Einstein said, “The significant problems that we face today cannot be solved at the same level of thinking that we were at when we created them.” Basically, we need to have elevated thinking in order for us to solve the problems we have today.

 

Mr Speaker, various sectors of the Budget have been talked about and I will look at these sectors both in terms of revenue generation and expenditure that has been proposed. I will start with the key issue of the local ownership of the economy.

 

Sir, Zambia, as a country, seems to have lost self confidence. There is a belief that we cannot run the economy on our own. Having worked in various countries with different international people ...

 

Hon. Members: Hear, hear!

 

Dr Chanda: ... I believe the intelligence quotient (IQ) of a Zambian is higher than that of some of the people we want to entrust the economy with. If a Zambian can manage to handle an international job, why is it that we cannot run our own economy?

 

Interruptions

 

Mr Speaker: Order, on the left!

 

Dr Chanda: For example, most of the shops in Zambian shopping malls are foreign owned. Almost everything in Shoprite is made outside Zambia. We are basically creating employment for farmers and manufacturers in South Africa who have turned Zambia into a dumping ground for their goods. That is actually my concern when it comes to hiving off non-performing State-owned enterprises. I hope we are talking about giving these institutions to Zambians who have the capacity to run them rather than having a knee-jerk reflex towards a foreigner coming to run our institutions.

 

Mr Speaker, fifty-two years after Independence, can we fail to run the retail sector? That is unbelievable.

 

Hon. Opposition Members: Hear, hear!

 

Dr Chanda: In my opinion, retail shops like Shoprite, Pick n Pay and Spar are glorified versions of a kantemba. A kantemba is a small shop where we buy the things we need in our neighbourhoods. We do not need any specialised skills. It is not the equivalent of landing on Mars or the moon. These are basic skills.

 

Hon. Opposition Members: Hear, hear!

 

Dr Chanda: We had the Zambia Consumer Buying Corporation (ZCBC) and NIEC before. So, what is stopping us from running retail shops?

 

Hon. Opposition Members: Hear, hear!

 

Dr Chanda: I will give an example of Kenya.

 

Mr Speaker, Kenya, which basically has the same economic standing as Zambia and a higher gross domestic product (GDP), decided a long time ago that it wasnot going to be a province of South Africa. That is why when you go to Kenya, you will see that the retail sector is domestically grown.

 

Hon. Opposition Members: Hear, hear!

 

Dr Chanda: In Kenya, there is Nakumatt, not Shoprite. Also, the banking sector is locally grown. As a result, Kenya has generated a domestically-owned economy and exports commodities to other countries.

Hon. Opposition Members: Hear, hear!

 

Dr Chanda: I am saying all this in agreement with the hon. Minister of Finance ...

 

Hon. Opposition Members: No!

 

Laughter

 

Dr Chanda: ... because the Budget theme is pushing for a home-grown economic recovery programme.

 

Hon. Government Members: Hear, hear!

 

Dr Chanda: Some people are saying that Zambia is being managed by the International Monetary Fund (IMF), yet the Budget is pushing for a home grown economic plan. What I am saying is in line with the hon. Minister’s Budget Speech. Further, as guided by the Hon. Speaker, nothing is cast in stone. So, we shall support the hon. Minister of Finance with the caveat that we have the capability to run a home-grown economy rather than sub-contracting it to foreigners whom some people believe are more superior to us.

 

Mr Speaker, countries are like individuals. If an individual loses self confidence, for some reason, he/she fails to do even the most basic things. The various economic and political problems that we, as country, have experienced have made us lose self confidence. As a medical doctor who has studied psychology, some of the symptoms of loss of self confidence are pessimism, depression and negativity. You basically become risk averse and take comfort in the status quo. However, I wish to challenge all of us to rise above this. Let us have the self confidence to do things that we have never done before.

 

Hon. Members: Hear, hear!

 

Dr Chanda: The fear of failure will not lead us anywhere. It is only when we venture into uncharted waters that we shall progress.

 

Sir, the reason some countries colonised the whole world is that they revealed needs that were beyond the ocean, which had monsters that swallowed people. However, they dared that belief. I wish to call upon all the Zambians to dare that belief and move from-business-as-usual to business-unusual.

 

Mr Speaker, the Budget is progressive and will benefit the people of Bwana Mkubwa. It also talks about the various things that the hon. Minister has done to reorient our economy from being a purely import-based economy to an export-driven one. The hon. Minister has introduced many types of taxes. For example, there is a tax on exports of locally-manufactured goods. How much skill is needed to make a tooth pick? Do you need someone from South Africa or China to make a tooth pick, which you can substitute with a chipyango which is a traditional one for you?

 

Hon. Government Members: Hear, hear!

 

Dr Chanda: The hon. Minister is protecting our domestic industry and that is what we call the infant industry theory. He is also trying to develop a home-grown economy. We must stop believing that anything made outside Zambia is more superior. Even if it were, that is no reason for not trying to produce our own.

 

Mr Speaker, for example, Japan, China and Singapore used to be third world countries, making inferior goods. We used to laugh at the Chinese and other countries for their inferior goods, but these countries have learnt how to produce quality goods over time. In this case, let us put quantity first because quality is built over time. When we build quality we shall not only serve the domestic market, but also the export market. That is the type of thinking that the hon. Minister manifested in his Budget Speech.

 

Sir, the other day, I watched the hon. Ministers of Agriculture and Finance in Chipata doing some community work. The hon. Minister of Agriculture said that she was not the Minister of Maize, but the Minister of Agriculture. The weakness that we have had in the agriculture sector, which is the main sector in the diversification of the economy, is that we have made it ...

 

Mr Speaker: Order, on the left!

 

Dr Chanda: ... ‘maize-centric’. That is why we can debate issues related to maize the whole day in this House. We do not argue about yams, millet or any other cash crop. We are ‘maize addicts’ in the same way that we are ‘copper addicts’ and ‘hydro-electricity addicts’.

 

Ms Siliya: Hear, hear!

 

Dr Chanda: There is a need for a paradigm shift. We need to move away from this and the hon. Minister of Agriculture is leading the way. 

 

Sir, the Farmer Input Support Programme (FISP) has been talked about exhaustively. I wish to say that the programme should be designed in such a way that the beneficiary farmers graduate to another level. The intentions of the FISP are good. However, we do not measure success by good intentions, but by results. What are the results of FISP? Research has shown tha FISP has not significantly lowered the poverty levels at macro-level in the country. In the current Budget, FISP and the Food Reserve Agency (FRA) account for about 70 per cent of the budget for agriculture. Is that an efficient way of managing our resources? Are people like me supposed to benefit from FISP? We have been told about seasonal shops that sell fertiliser. These are the key questions we should be asking.

 

Mr Speaker, the results of a survey that was conducted last year revealed that there are 1.6 million poor households in Zambia. This is interesting and that is why the President said that sectors should not operate in silos, but should be synergistic and integrated. If FISP is meant to target 1 million households, the Social Cash Transfer Scheme targets another 500,000 and the Cashew Nut Initiative targets another 600,000, then, we are well on our way to achieving our target of reaching the poor households in Zambia. We need to create synergies amongst programmes if they are to yield good results. Otherwise, it does not matter how much money we plough into programmes, if they are not well targeted, they will not yield any results.

 

Sir, the definition of insanity in psychology is doing the same things and expecting different results. As the Legislature, we shall support the Government, the Ministry of Finance and the Budget, but with the necessary changes that are aimed at efficient utilisation of resources so that we have returns on investment. There are ‘low hanging fruits’ that we can invest our money in. What are the drivers of the economy? Energy is a key driver of the economy. We should allocate more funds to the energy sector. We should have big dreams for the energy sector.

 

Hon. Government Members: Hear, hear!

 

Dr Chanda: Sir, let us create excess capacity for domestic consumption and export. We have export markets. For instance, Ethiopia has invested heavily in huge hydropower projects not because it needs all that power capacity for domestic use, but that it is targeting East Africa. It knows that countries like Kenya and Tanzania can benefit from this power. Economies of all these countries are growing rapidly, hence the need for power. When is Zambia going to reach that stage? I think that is the route we should take.

 

Mr Speaker, I also wish to talk about the allocations to the social sectors such as health and education. Year in and year out, we talk about Zambia not being able to reach the Abuja Declaration of allocating 15 per cent of its National Budgets to health. This is not feasible because, as a country, we lack donor co-ordination in Zambia. There is a lot of money in the health sector. I have worked in that sector both in public, private and international non-governmental organisations (NGOs). For instance, the United States Agency for International Development (USAID) in Zambia provides US$300 million per year for these sectors. There are many other players in the sector but, if there is no co-ordination, nothing will happen. Yesterday, I asked some researchers from the Policy Monitoring and Research Centre (PMRC) if they had conducted any research to find out how much money there is in the health sector and whether that money is actually being efficiently allocated.

 

Mr Speaker, in Rwanda, the Government has created a data base for all the donors. At the time the Budget is presented, we should have an idea of where the monies are so that we avoid duplicating efforts or spending money where someone is already spending. We should be assertive because this is our country.

 

Hon. Members: Hear, hear!

 

Dr Chanda: The fact that someone is coming to donate money does not mean that they own the country. We are Zambians by birth, ‘in life and in death’.

 

Hon. Members: Hear, hear!

 

Dr Chanda: So, we need to set the agenda for donors in the areas of priority. In this case, the areas of priority are growth areas. These are the low hanging fruits that I referred to earlier. Where can we achieve the most? So, even as we consider the Budget, let us look at the areas where we can have quick returns. If we are going to have returns after twenty to thirty years, very few of us will be in this Parliament.

 

Mr Livune: Question!

 

Dr Chanda: So, let us have quick returns that are going to create jobs. If we create jobs, we are going to fight poverty in a more efficient manner.

 

Hon. Members: Hear, hear!

 

Dr Chanda: Mr Speaker, I am not a socialist, but I know socialists believe that the more money you pump in poverty, the better you become. I am not against helping those in need, but I am against helping the lazy. If you are lazy and we invest in you, we are going to make you comfortable in your poverty.

 

Hon. Members: Hear, hear!

 

Dr Chanda: Mr Speaker, in my belief, which is neither religious nor cultural, I do not give alms to able-bodied people. In Zambia, I have seen someone with bigger muscles than me begging. They can convert their muscles into productive labour and earn some income.

 

Hon. Members: Hear, hear!

 

Dr Chanda: Sir, similarly, at national level, there are people who benefit from poverty- targeted programmes when they are not supposed to. For example, if the hon. Member for Bwana Mkubwa is benefiting from FISP and the Social Cash Transfer Scheme, then, there is poor targeting of programmes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

Hon. Members: Hear, hear!

 

Dr Chanda: Sir, I know that the Pay-as-You-Earn (PAYE) is high. We belong to the middle class and we are affected, but that does not mean that we should take advantage of the poor or rob the Government. This is what is called, “The voice of Jacob and the hand of Esau”, where you give with one voice and take with the other. So, I wish to urge the Government, the Ministry of Finance and the respective ministries to put strong monitoring mechanisms in place so that whatever money we gain and spend is well targeted. We also need to have clear projections of what we are going to get and under what period. Basically, we should have a project mindset. We are not here forever. We are not going to have ‘forever programmes’. We are going to have programmes that are well targeted and estimated so that we know the projections.

 

Mr Speaker, I have worked in Rwanda and one thing I was very impressed about that country, apart from having a performance-based approach in the public sector, is the fact that for every project that was implemented, there was a billboard put up to indicate when the project would start and end. The dates are clear for everyone to see. So, if you are given a project as a local contractor, all the information will show. I am happy that the hon. Minister of Finance has allocated a huge sum of money to Small and Medium Enterprises (SMEs). They are given money for projects year in and year out, but all that we hear about is projects being abandoned. In Rwanda, there is accountability. If you do that, you will run away on your own. You do not wait to be asked because the dates are clear.

 

Laughter

 

Dr Chanda: That is all about project management. So, I wish to urge the Government to take such disciplinary measures and blacklist some people. What is the equivalence of stealing from the public? This is when you are given public resources and you run away with them.

 

Hon. Members: Hear, hear!

 

Dr Chanda: Mr Speaker, I wish to conclude by thanking the hon. Minister of Finance for a pragmatic Budget.

 

Mr Livune: Question!

 

Hon. Government Members: Hear, hear!

 

Dr Chanda: Sir, looking at the macroeconomic objectives that have been set in the 2017 Budget, every specialist, whether inside or outside Zambia, including those from ‘Matero University’ agree that these are realistic and attainable.

 

Mr Speaker, I thank you.

 

Hon. Members: Hear, hear!

 

Mr Machila (Magoye): Mr Speaker, I thank you for giving me the opportunity to contribute to the debate on the Budget. In his opening remarks, the hon. Minister of Finance mentioned that resources in the 2017 Budget were allocated to promote equitable development across the country. That statement gave a bit of hope to the people of Magoye. However, it was short-lived when the hon. Minister stated that no new projects would be started due to limited resources. He also stated that we are going to spend what we have and not what we do not have, and that the existing projects were going to be completed. Since there were no projects in Magoye, the people consider the Budget hostile. There are no unfinished projects in Magoye. Therefore, there is nothing to be completed.

 

Laughter

 

Mr Machila: Mr Speaker, the people are now not expecting anything good from the Budget.

 

Mr Speaker, the people of Magoye expected to hear the hon. Minister of Finance to talk about the upgrading of roads leading to productive areas in the constituency such as Itebe and Chivuna, were we have good ranchers and farmers in various crops. The upgrading of roads would ease the transportation of commodities to the main market centres. So, the people were disappointed when the hon. Minister of Finance said that the Government would only concentrate on the existing projects.

 

Mr Speaker, the hon. Minister stressed that roads that lead to productive areas would be constructed. However, I was amazed that he did not mention the rehabilitation of the Great North Road, from Turnpike in Kafue, to the greater part of the Southern Province. That road passes through Zimbabwe, Botswana and Namibia. If you go through the Western Province, it will link you to Angola, yet there is no allocation for this road which has actually become a death trap, as it is in bad shape. From the Munali Hills, through Mazabuka in Kaleya and Magoye, there are no longer potholes on the road, but drum holes.

 

Laughter

 

Mr Machila: Mr Speaker, I wish to appeal to the hon. Minister of Finance to allocate resources for the rehabilitation of this portion of the road because it is an international road. The economy of Zambia depends mainly on imports. Therefore, the southern route is too important to be ignored.

 

Mr Livune: That is right!

 

Mr Machila: Mr Speaker, let me now discuss the issue of dip tanks. A few of them have been constructed in Magoye Constituency and most of them in areas where there is no water. No boreholes have been constructed to make them useful, yet they have been declared completed and have been handed over to the communities.

 

Mr Speaker, I appeal to the hon. Minister of Finance to deliberately allocate resources for the construction of boreholes near the dip tanks to make them operational because they are white elephants in their current state. Government resources will go to waste if dip tanks are constructed where there is no water.

 

Mr Speaker, I was excited when I looked at the Budget and saw that 2,000 new boreholes would be constructed and 1,000 rehabilitated. This is good news. However, I am worried about the lack of precision in indicating how many are going to which region because the 2,000 boreholes may end up in one region, depriving others. Such has happened before where so many kilometres of road works where concentrated in certain regions while others had nothing.

 

Hon. UPND Members: Hear, hear!

 

Hon. PF Members: Question!

 

Hon. UPND Member: Bauze, mbuya!

 

Mr Machila: Mr Speaker, the idea is okay, but I am worried about its implementation. If I had the mandate, I would have suggested that since Zambia has ten provinces, and there are 2,000 new boreholes scheduled to be sunk, why not sink 200 boreholes in each province? That way, resources and development would be distributed fairly. I know that some areas already have many boreholes and do not need any more. In this case, areas where more boreholes are needed can be allocated slightly more. For instance, in Magoye, we need 100 new boreholes. The fifty existing boreholes need rehabilitating.

 

Mr Speaker, the people of Magoye are anxious to have a share of the 2,000 boreholes and do not expect a situation like the one we had in the past where good roads went to areas which are less productive. The roads in these areas were upgraded to bituminous standard, leaving Magoye which is a grain basket of Zambia.

 

Hon. UPND Members: Hear, hear!

 

Mr Machila: Mr Speaker, we have talked a lot about the e-Voucher system. I know that in some areas, this system has not been introduced. In Magoye, however, it has been operating for the last two years, suffice it to say that it has been haphazardly implemented.

 

Mr Speaker, the allocation to individual farmers was equivalent to 4 x 50 kg bags of fertiliser and a 10 kg bag of maize seed. Those of you who understand agriculture will know that this is inadequate, considering that we are targeting the poor and vulnerable. So, when you give them four bags of fertiliser, it means that they will have a harvest of about twenty to twenty-four bags which will merely go to consumption. However, if you gave them eight bags of maize like was the case during the late President Mwanawasa, SC.’s reign, four bags of fertiliser would go towards producing maize for consumption and the remaining four would go towards improving their economic status. How do you hope to improve their economic status with four bags of fertiliser?

 

Hon. UPND Member: No way!

 

Mr Machila: You are spreading the inputs thinly over a wide area and are, therefore, doomed to fail from the start.

 

Laughter

 

Hon. UPND Members: Hear, hear!

 

Mr Machila: So, you should not be asking why farmers are not graduating to another level. How can they graduate? Poverty plus poverty equals poverty.

 

Hon. UPND Members: Hear, hear!

 

Mr Livune: Poverty squared!

 

Mr Machila: Mr Speaker, the e-Voucher system is economical, but the activation of the vouchers is usually delayed. For example, the rains have started in Magoye, but the e-vouchers have not been activated and are intended to be activated in December when the planting season is almost ending. Then, you complain about farmers not being able to graduate to another level. You activate the e-Voucher in November and then put the farmers to task.

 

Hon. UPND Members: Hear, hear!

 

Hon. UPND Member: Bauze, mbuya!

 

Mr Machila: The Government delays the farmers and then wants to hold them accountable for its mistake.

 

Hon. UPND Members: Hear, hear!

 

Mr Machila: Mr Speaker, areas like Magoye are typically rural and when you give the peasant farmers e-vouchers, they have to travel about 90 km to Mazabuka Town. This is an added cost. So, they end up selling part of their inputs. Therefore, you make the agro-dealer richer and the vulnerable even more vulnerable. In fact, the vulnerable have now become an endangered species.

 

Hon. UPND Members: Hear, hear!

 

Laughter

 

Mr Machila: Mr Speaker, another problem that we have is that we want people to undertake economic activities that they do not know about. Allow people to do what they know best. Those that know how to produce maize, let them do so; those that want fishing, let them also go ahead and fish; and those who want to hunt, let them do so.

 

Laughter

 

Mr Machila: You want everybody to grow maize. For some of you who may be too young to remember what happened in 1987, I will tell you that the issue of maize is political and can get a Government out of power. There were food riots in 1987 because of food shortages. So, if you are not careful about this food issue, it will get you out of power.

 

Laughter

 

Mr Machila: Mr Speaker, one of the contributing factors to the poor performance of the agriculture sector are the poor extension services. In Magoye, for instance, we do not have enough agriculture extension services officers. The Nanchengwa and Nkonkola areas in Chief Hanjalika’s area has been abandoned. In Mwanachingwala and Chalimbana areas, there are no veterinary officers. This has affected the productivity of the small-scale farmers.

So, invest in extension services and you will see results from agriculture. The talk about agriculture being at the centre of our development agenda is just receiving lip service. If the Government does not invest in extension services, deliver inputs in time and ensure that there are markets closer to the farmers, the agriculture policy is likely to fail.

 

The people of Magoye expect the Government to work on the feeder roads and give the people freedom of expression ...

 

Hon. Opposition Members: Hear, hear!

 

Mr Machila: ... with due respect to others. Today, the political climate in the country is so hostile that even when you want to contribute positively, if you are perceived to be an opponent, your contribution is deemed to be bad.

 

Mr Mwiimbu: Hear, hear!

 

Mr Machila: A piece of brotherly advice to the hon. Ministers of Agriculture and Finance, is that, please, take note of the observations, sit down and reorganise the Budget because, in its current form, …

 

Ms Lubezhi: Eh!

 

Mr Machila: … it needs complete surgery.

 

Laughter

 

Hon. Opposition Members: Hear, hear!

 

Mr Machila: If we do not do that, about this time next year, we shall be saying that we gave you free advice.

 

I thank you, Mr Speaker.

 

Hon. Opposition Members: Hear, hear!

 

Mr Simfukwe (Mbala): Mr Speaker, I thank you for allowing me to debate the speech of the hon. Minister of Finance which was presented to this House on 11^th November, 2016.

 

Mr Speaker, I wish to say that the contents of the hon. Minster’s speech were timely, considering what the situation was like one or two years ago.

 

Mr Speaker, listening to the hon. Minister of Finance, I could tell that he has grasped the opportunity to undertake real fiscal consolidation. We needed to do this much earlier, but I think that the hon. Minister of Finance has taken advantage of the fact that we have had too many elections. So, it was difficult to undertake real fiscal consolidation.

 

Mr Speaker, with one election every two years, any politician, regardless of which political party or country he/she is from, is not likely to implement fiscal consolidation no matter how bad things are in the economy. He/she is likely to remain expansionary and continue to spend even what he/she does not have because that is the nature of the political business cycle.

 

Mr Bwalya: Hear, hear!

 

Mr Simfukwe: Mr Speaker, I was happy to hear an eminent person from one of our important economic institutions say that fiscal management is political. This person made me feel comfortable with the fact that there are two sides of the economy, the monetary side that is managed by the Central Bank, and the fiscal side that is managed by the Ministry of Finance and related ministries. He said that the fiscal side is where we manage issues of spending, borrowing and how or what to spend on, is a political process. How you spend the money in the country and the instructions you issue, what you want to spend on or whether you want to borrow, is all political. This can happen to any Government. The duty of the monetary side is to fire-fight all the explosions that come out of the way politicians spend money. The monetary experts have to manage the side effects by making sure that the interest rates are properly managed and the exchange and inflation rates are stable. That is the way things stand.

 

Sir, with five years remaining before the next General Elections; it is possible for fiscal management not to be purely political, but to have a bit of economics to build the economy, be productive, create employment and do the things that economists believe in. We need to combine political-decision making with economics. That is what Hon. Mutati has done. He has taken advantage of the calmness in the country. It is time to do some economic management. I am happy with the hon. Minister because he has taken advantage of the prevailing peace. The elections are over, people have won while others have lost, …

 

Laughter

 

Hon. Government Members: Hear, hear!

 

Mr Simfukwe: ... but it is now time to build the economy. It is time to do difficult things. Some cadres are used to grabbing people’s plots somewhere near my farm whenever we are nearing an election. So, they think that the politicians will not ‘touch’ them. Now, their plots have been demolished.

 

Laughter

 

Mr Simfukwe: The cadres have been chased away, big houses have been demolished because this is time to manage things properly, and not to politicise issues.

 

Hon. Government Members: Hear, hear!

 

Mr Mutati entered the Assembly Chamber and sat next to Mr Simfukwe.

 

Mr Simfukwe: It is time to stabilise the economy.

 

Mr A. B. Malama: Kokolapo!

 

Mr Simfukwe: The hon. Minister is sitting next to me now.

 

Hon. Government Members: Hear, hear!

 

Mr Simfukwe: Hon. Mutati has grasped the opportunity and we are going to see that the people who manage our interest, exchange and inflation rates will now find it easy to do their work because there is proper economic management with very little political content. I see our country moving forward before we get to another political season when the politicians will start giving more political fiscal instructions than they are doing now.

 

Hon. Government Members: Hear, hear!

 

Mr Simfukwe: Mr Speaker, despite such a progressive Budget that everyone has agreed is okay, I wish to warn that there are some institutional challenges lying ahead. Some of the challenges have been there since Independence. So, hon. Minister, I am now going to warn you about things that can go wrong if not taken care of. These are not new.

 

Mr Speaker, ministries are key implementers of what the hon. Minister wants to achieve. However, some of them are not ready. Some ministries, by their nature, were not designed to carry out the kind of instructions that the President and hon. Minister have issued. His Excellency the President said that he wants diversification, value addition for all agro produce, industrialisation and technology development which is appropriate, achievable and affordable. Some ministries, which are responsible for carrying out these instructions from the President and the hon. Minister of Finance, cannot do that. They were incapable of carrying out such instructions in the era of the United National Independence Party (UNIP) days and the Movement for Multi-party Democracy (MMD), to date. Today, one Permanent Secretary (PS), whose name I will not mention, admitted that his ministry cannot carry out the instructions issued by the President. We asked him whether his ministry could do what it is being asked to do and whether it is designed to do this kind of work. His response was in the negative.

 

Ms Lubezhi: Ah!

 

Mr Simfukwe: Sir, I will not mention the name, but the hon. Members of the Expanded Committee on Estimates know the PS I am referring to. He said his ministry was designed just to spend on inputs and provide services, and not to deal with outputs.

 

Ms Lubezhi: Shame!

 

Mr Simfukwe: So, without an effort to restructure some of the ministries …

 

Ms Lubezhi: No wonder they cannot perform!

 

Mr Speaker: Order! Order!

 

Mr Simfukwe: This has been a problem since Independence.

 

Mr Speaker: Order!

 

Business was suspended from 1815 hours until 1830 hours.

 

[MR SPEAKER in the Chair]

 

Mr Simfukwe: Mr Speaker, before business was suspended, I was saying that the hon. Minister of Finance’s Budget Speech is timely for the state in which our economy is in. I also said that there are some pitfalls that need to be looked out for. These pitfalls are mostly institutional.

 

Sir, public-private partnerships (PPPs) are one of the vehicles that the hon. Minister has proposed to be used to raise finances for important economic projects in the country. This is one of the most popular ways worldwide for governments to raise finances. It is, therefore, forward looking for the hon. Minister to include this approach in his strategies for next year.

 

Mr Speaker, however, it is common knowledge that in most places where PPPs have been implemented so far in the country, there is a general belief that the Government does not come out with a good deal and that the private side tends to get a better share of benefits from these kind of initiatives. Experts have said time to review the legislation on PPPs has come.

 

Sir, therefore, I would like to urge the hon. Minister to implore the Government departments or units to, once more, take a look at the legislation and guidelines that govern the PPP-financing arrangement so that whenever we undertake this kind of initiative, there is a win-win deal between the Government and the private partners.

                                                                                             

Mr Speaker, I also wish to commend the hon. Minister for allocating K3.6 billion towards the clearance of arrears for contractors in this country. The hon. Minister was clear that this will help the liquidity situation in our economy. I know the Government owes the contractors about K5 billion or more. Clearly, three quarters of the money will be released into the economy.

 

Sir, however, there are two types of contractors in this economy. Small and Medium-sized Enterprises (SMEs) or local contractors are Zambian companies that, when they are paid any of this money, will spend it in our country. Economists have argued that this money is going to have a multiplier effect in our economy and will certainly address what the hon. Minister wants to achieve, that is, improved liquidity. The other type of contractors are the foreign contractors. Most of them take most of the money they get out of the country. So, there is very little benefit to our economy. I, therefore, wish to implore the hon. Minister of Finance to split the allocation so that we know how much will be paid to local and foreign contractors.

 

Mr Mukosa: Hear, hear!

 

Mr Simfukwe: Sir, if it is possible, I suggest that three quarters or 70 per cent of this money t be used to pay arrears for local contractors.

 

Hon. Government Backbenchers: Hear, hear!

 

Mr Simfukwe: Mr Speaker, I also wish to share one concern. In our country, we do not seem to be doing well in the area of measuring our progress. We are probably doing much better than we think. When the President said that 1 million jobs would be created in the next few years, some people did not agree with him. Even when the hon. Minister of Finance reduced the figure to the one year target of 100,000 jobs, some people did not agree with him. This is because our experts in statistics are not helping us. We are failing to benchmark our economic progress. The targets that the hon. Minister has set can only be monitored if the statistics are given properly. As things stand, I know that it is not possible to monitor employment creation on a monthly or quarterly basis. We have to wait for a survey which may be undertaken once every two or three years.

 

Sir, therefore, I wish to implore the hon. Minister to ‘shake up’ the officers at the Central Statistical Office (CSO) and all the statistical units in the various ministries to start benchmarking and measuring progress so that the information can help educate the people and the planners can assess how we are doing. This is because if we do not know where we are now, we will not know how to measure our progress. There is a serious problem of a lack of data, especially at sector and sub-sector levels.

 

The Ministry of Energy has been talking about cost reflective tariffs. It is shocking to learn that the last time we got to know the cost reflective tariff for this country was in 2006. So, even though we are being told that we are paying below the cost reflective tariff, it is possible that we could be paying more because no one in the Ministry of Energy knows how much a cost reflective tariff is. It has not been determined.

 

We understand a study is about to be carried out, yet people have already been mentioning that we are paying below the cost reflective tariff. The lack of economic data is a serious anomaly. It will make it difficult for the hon. Minister of Finance to measure how we shall achieve what we have set out to achieve.

 

Mr Speaker, I also wish to comment on budget planning. In future, the Legislature should be involved at much earlier stages of the budgetary process. I am happy that in the Amended Constitution, there is a provision on the enactment of legislation on planning and budgeting. This will help hon. Members of Parliament tremendously.

 

We have heard from several hon. Members of Parliament that the Cordon Line, which has been budgeted for, is not wanted by the hon. Members from that area. This is a sign that the Legislature is being involved too late in this process. I hope that the hon. Minister will bring the Planning and Budgeting Bill to the House because I know that it will make it mandatory for this House to be involved at much earlier stages of the development of the Budget.

 

Hon. Members: Hear, hear!

 

Mr Simfukwe: Mr Speaker, I wish to say that we have been ranked one of the hungriest nations in the world. Since I have not yet seen the detailed Yellow Book, I do not know if the provision for support to nutrition is still there because it is missing in the summarised one. If this is an anomaly, this budget line, which has always existed, should be looked at so that there can be a provision for this in the mother-child component of the Ministry of Health where the allocation is found. If it is an anomaly, please, hon. Minister, rectify it.

 

Finally, I want to share with the House that when this country does not do well, it is all of us adults who have failed our children and outsiders.

 

Hon. PF Members: Hear, hear!

 

Mr Simfukwe: Yesterday, there was an event for Save the Children where brilliant young people asked questions. They cannot tell which political party is which. They do not know who is in the United Party for National Development (UNPD), Patriotic Front (PF) or the Movement for Multi-party Democracy (MMD). They cannot tell us apart. To them, we are leaders in the Government. So, the failure to lift this country out of poverty is seen as a total failure by all of us, adults.

 

Ms Lubezhi: No!

 

Hon. PF Members: Hear, hear!

 

Mr Simfukwe: Furthermore, when we fail as a country, the outside world will not say that this country has failed because of the party in Government. It will say that Zambians have failed to develop their country. It will laugh at us collectively.

 

I, therefore, wish to implore the House to support the hon. Minister of Finance and his Budget. All the experts are agreeable with what is in the Budget. However, their only worry is the implementation aspect. By the way, implementation is not done by the hon. Minister of Finance alone. It should be done by the private sector, the public sector and us as, the Legislature.

 

Let us support the hon. Minister of Finance and tell all those who are lazy and are wasting our time; those who are not using the resources properly in this country; and the civil servants who are failing to perform to step aside.

 

Mr Speaker, I thank you.

 

Hon. PF Members: Hear, hear!

 

Mr Mwamba (Lubansenshi): Mr Speaker, I am delighted to have this opportunity to debate the Motion of Supply. For me to debate it well, I will look at the genesis of the Budget.

 

I have heard from the debates inside and outside this House that the Budget is for Hon. Felix Mutati, President Edgar Lungu and the Patriotic Front (PF). As far as I know, in formulating the Budget, information is sent to districts and constituencies, asking people to come up with ideas. Heads of departments and ward development committees meet and agree on their needs. This is consolidated at sector/department level.

 

Thereafter, the council convenes the District Development Co-ordinating Committee (DDCC) meeting. At this meeting, the wards development committee members, non-governmental organisations (NGOs) and Government departments meet to select and consolidate their budgets into one booklet. The booklet is taken to the Provincial Development Co-ordinating Committee (PDCC) that is chaired by the Permanent Secretary. This meeting comprises all heads of departments, churches, NGOs and district secretaries and their district commissioners. They sit and look at this document and consolidate. Thereafter, the Permanent Secretary brings it to Lusaka. So, each province sends its budget to Lusaka. In Lusaka, the stakeholders are invited to look at the budgetary requirements from the ten provinces and pick and consolidate them. The document is what is called the Budget. This is the document we are debating at the moment. 

 

I have never seen a Budget discussed at the PF Headquarters in Lumumba and brought to this House; I have never seen a Budget solely owned by the PF; I have never seen a document emanating from State House; and I have never seen a document that has been looked at by President Lungu, his Ministers and PF members brought to this House and called Lungu’s Budget.

 

Hon. PF Members: Hear, hear!

 

Mr Mwamba: I have given the genesis of the Budget so that people can look at the National Budget as their own. Only then will whatever is in this Budget be appreciated. We should work together and implement it rather than play the blame game. So, leaders in this House, I have given the background of the Budget so that there is consensus as we look at it.

 

Mr Speaker, I wish to acknowledge that the Budget has a ‘bad’ economic background. It is being perceived as a ‘bad’ Budget because it cannot meet all or needs. For instance, we had inadequate rainfall. As a result, we did not have enough water in our rivers. The low water levels in the water bodies have brought about the electricity problems that we are experiencing. Therefore, the insufficient power being generated by our generating plants is due to low water levels.

 

Sir, the low water levels have a ripple effect on the economy. This has also affected production in the mines and other industries.

 

Once the production of copper is affected, the entire economy is equally affected because copper is the major contributor to the gross domestic product (GDP) of this country. Consequently, there is not enough money to cater for the areas that need agent attention.

 

Sir, we have heard many debaters say that the Budget does not have much to offer. Others are asking why boreholes are not being sunk in their constituencies. The Budget contains block figures that the sector ministries and departments will work with. So, if we want to bring our grievances or register our needs, it is better to bring them to the attention of the sector ministries or departments so that as the hon. Minister shares the resources among the sector ministries and departments, the ‘cries’ of the people can be taken into account.

 

Mr Speaker, my constituency wants roads and schools to be constructed in the State farm which was established in 1995. I, therefore, wish to implore the hon. Minister of Agriculture to take into account the requirements of the hon. Members. This is the only way the ‘cries’ of the people can be attended to.

 

Sir, we know that the money is not enough and that money will never be enough. However, we can do with the little money that has been allocated. What is important is to prioritise our needs.

 

Mr Speaker, I am happy that the ministries of Agriculture, Education and Health have been taken care of in the Budget. Therefore, it is up to the hon. Ministers in charge of the ministries to ensure that the hon. Members’ requirements are met. The Ministry of Education has had problems of inadequate accommodation, teachers and classrooms for some time now. So, the money that has been allocated for infrastructure development should be shared equally.                  If we do not improve the education sector, there can be no development. In this regard, I wish to thank the hon. Minister of Finance for the allocation for teacher recruitment in the Ministry of General Education and for the recruitment of  staff in the Ministry of Health.

 

Mr Kampyongo: Hear, hear!

 

Mr Mwamba: Although our economy is in a bad state and some schools do not have teachers, we should be patient. We are slowly meeting the requisite levels of staffing in the various sectors. Patience will take us to higher heights. We, therefore, need to work together to improve our country.

 

Mr Speaker, allow me to also comment on the allocation to the Ministry of Agriculture. I agree with the previous debaters who spoke about the Farmer Input Support Programme (FISP). We have lost a lot of money through this programme because of a lack of accountability. However, with the introduction of the Electronic Voucher (e-Voucher) System, there shall be accountability on the part of the farmer. Even the low production that we have been lamenting will improve. Farmers will use the e-Voucher to procure inputs in good time. This will result in improved agricultural production.

 

Sir, there is a lot that I wish to talk about.

 

Mr Kampyongo: Hammer, hammer!

 

Mr Mwamba: All that is needed is patience and accountability in the implementation of the 2017 Budget. We are all aware about the reports of the Auditor-General. I we should strictly follow-up the cases of abuse of public funds so that the culprits are brought to book. The Permanent Secretaries (PSs) and other controlling officers who are found wanting should be removed from office and replaced with credible people.

 

Mr Livune: Hear, hear!

 

Mr Mwamba: The 2017 Budget should achieve its objectives. We really want this Budget to give us the ‘fruits’ that have been projected in it.

 

Mr Speaker, in his Budget Address, the hon. Minister talked about improving skills in many sectors. We have been ‘crying’ for skills improvement. However, we should ensure that the people who have skills are employed. That is why there is an allocation for this in the Budget.

 

Mr Speaker, in conclusion, …

 

Mr Livune: Hear, hear!

 

Mr Mwamba: … I wish to state that we have had socio-economic challenges for some time. All that we need to do is continue overcoming them slowly. Like I said earlier, no matter how little the money may be, all that we need to do is put it to good use.

 

I thank you, Mr Speaker.

 

Hon. PF Members: Hear, hear!

 

Mr Chiyalika (Lufubu): Mr Speaker, thank you for giving me the opportunity to contribute to the debate on the speech by the Minister of Finance, Hon. Felix Mutati.

 

Sir, on behalf of the people of Lufubu, I wish to say that this is a good Budget on face value in the sense that various sectors of the economy have been considered. One of the sectors that affect my constituency is agriculture. Many proposals have been made to improve agriculture and one of them is diversification. Instead of concentring on maize, we should grow other crops, particularly that maize is costly to produce. The other crops that have been proposed in our quest to diversify are cotton, rice and a few others. This is a welcome move.

 

The Farmer Input Support Programme (FISP) is not being well managed. There has been a suggestion to introduce the e-Voucher system in FISP. We have been assured, through this Budget, that the e-Voucher system is going to reduce the wastage that is associated with FISP.

 

A project to grow cashew nuts in the Western Province has been proposed. This project is targeting 600 beneficiaries, 300 of which are women. One hundred thousand youths are also going to benefit from this project. I attended a workshop at Protea Hotel in Chisamba at the weekend at which one of the resource persons made a presentation in regard to the poverty levels in the country. He said that the poverty levels in the urban areas have reduced by 50 per cent. However, the poverty levels in rural areas have only reduced by 1 per cent. Going by that disparity, you can see that there is more poverty in rural areas. So, the hon. Minister of Finance should concentrate on improving lives in rural areas, particularly Ngabwe. I am glad that the Cashew Nut Project is being implemented in the Western Province, which is one of the provinces with the highest poverty levels. This project is going to uplift the standard of living of the people of the Western Province.

 

Forty million United Stated Dollars has been sourced and allocated for emerging farmers. In his Speech for the Official Opening of the Twelfth Session of the National Assembly, His Excellency the President said that one of the ways of diversifying the economy is by improving agriculture. I think that this is good allocation in the sense that most of farmers, particularly peasant farmers in rural areas, use traditional farming methods. The allocation will enable them to buy modern farming equipment.

 

Another issue that affects agriculture is climate change. We do not recognise the effects that it has. However, I am glad that there is an allocation in the Budget to cater for programmes such as irrigation schemes to combat the effects of climate change.

 

Sir, on energy, I think the current system of pricing our energy products is not cost-reflective. In this vein, the Government has proposed to remove the subsidies on fuel which has already been done. The savings from this will go a long way in supporting social sectors such as health and education.

 

Mr Speaker, one hon. Member gave figures showing how the Government is losing money by subsidising rich companies in the mining sector that do not pay taxes in full. The Government cannot continue subsidising mining companies and other rich people at the expense of the poor in the rural areas.

 

Hon. Government Members: Hear, hear!

 

Mr Chiyalika: Mr Speaker, another proposal in the Budget is to increase the allocation for the provision of clean drinking water to the rural population. In my constituency, most people do not have access to clean drinking water. I am glad that there is a proposal in the Budget to sink 2,000 boreholes. This will go a long way in meeting the needs of our people. I wish to urge the hon. Minister of Finance to ensure that the boreholes that have been planned are distributed equally to all rural areas where they are needed.

 

Sir, a good amount of money has been allocated to the education sector and special emphasis has been placed on the recruitment of teachers. Once the teachers are recruited, priority must be given to deploying them in rural constituencies. When teachers are sent to rural areas, they usually run away when they cannot find accommodation. This is bad because every civil servant who is on the payroll is paid a housing allowance. So, teachers should find their own accommodation.

 

Mr Speaker, there is also a proposal to change the bursary system for students at various Government universities. The payment of bursaries has been a problem in the past. So, the introduction of the Student Loan Scheme will solve this problem.

 

Sir, another sector of interest is health. The people of Lufubu Constituency are happy that the health sector workers will be given priority despite the tight Budget. The people of Lufubu are of the view that they will benefit from the recruitment of workers in the health sector, as there are no qualified health personnel in the constituency.

 

Mr Speaker, I thank you.

 

Hon. Members: Hear, hear!

 

ADJOURNMENT

 

The Acting Leader of Government Business in the House and Chief Whip (Mr Musukwa): Mr Speaker, I beg to move that the House do now adjourn.

 

Question put and agree to.

 

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The House adjourned at 1911 hours until 1430 hours on Thursday, 24^th November, 2016.

 

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