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Thursday, 11th October, 2018
Thursday, 11th October, 2018
The House met at 1430 hours
[MR SPEAKER in the Chair]
NATIONAL ANTHEM
PRAYER
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ANNOUNCEMENT BY MR SPEAKER
PORTFOLIO COMMITTEE CHANGE
Mr Speaker: In keeping with Standing Order 131(11) which empowers the Standing Orders Committee to make adjustments to the membership of a Committee as and when need arises, the Standing Orders Committee has made the following change to the composition of the Committee on Media, Information and Communication Technologies:
Mr Darious Mumba MP, will replace Mr Joseph Kabamba, MP.
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MINISTERIAL STATEMENT
PROGRESS ON LAUNCH OF NATIONAL AIRLINE
The Minister of Transport and Communication (Mr Mushimba): Mr Speaker, it is my honour and privilege to take the Floor. I wish to thank you most sincerely for according me the opportunity to issue a statement on the progress made towards the launch of the national airline.
Mr Speaker, the establishment of the national airline and investments being made by the Government in the transport sector is in line with the focus of the Seventh National Development Plan (7NDP) and the newly approved National Transport Policy which aims to transform Zambia into a transport and logistics hub for the Southern Africa region. Further, the national development plan and the policy seek to promote a sustainable, efficient, safe and integrated transport system, making Zambia a regional transport hub.
Mr Speaker, at present, Zambia’s aviation sector is projected to grow at the rate of 13 per cent year on year, signifying the sector’s potential to contribute towards the country’s Gross Domestic Product (GDP) and the creation of employment in our country.
Mr Speaker, arising from the above, the ministry is working to position the country strategically so as to optimise the benefits from the projected growth in the aviation sector. Furthermore, global growth trends in the aviation sector indicate that the continent of Africa will remain a strong growth area for a long time going into the future. In order to capitalise on these growth prospects, the Government has created the national airline, the Zambia Airways (2014) Limited, because it is aware of the fact it is critical to the attainment of our growth aspirations in the aviation sector.
Mr Speaker, the national airline will play a catalytic role in the growth of tourism, horticulture, trade and manufacturing sectors as it will create convenient delivery schedules for business and tourism. It will also open up untraditional routes and thus, offer new business opportunities to untapped areas and, therefore, enhance revenue collection for the Treasury. Furthermore, establishing a national airline will ensure the maximum utilisation of the aviation infrastructure currently being constructed and upgraded at a cost of over US$1 billion. The construction and upgrading of aviation infrastructure is being done to reposition Zambia as an aviation hub for the Southern Africa region.
Mr Speaker, broadly speaking, the national airline will contribute to employment creation in various economic sectors with direct and indirect linkages to its supply chain. Moreover, for every aviation job created, a further seven more permanent jobs will be created in support sectors. The investment that we are putting in the aviation sector is paying dividends and has resulted in our aviation safety and security efforts being recognised by international organisations such as the Airport Council International Africa Chapter which recently awarded the Harry Mwaanga Nkumbula International Airport with the award of best airport and best improved safety airport in Africa in the category between 10,000 to 20,000 air traffic movements.
Mr Speaker, as you may be aware, the Government is establishing the national airline with Ethiopian Airlines (ET) as a strategic partner. When established, the national airline will operate purely on commercial principles without Government or political interference in its operations.
Hon. Opposition Members: Question!
Mr Mushimba: Mr Speaker, the Government, through the Industrial Development Corporation (IDC), signed a shareholders’ agreement with the ET on 19th August, 2018, which prescribes the conditions of the partnership between the two entities. In this regard, the IDC will have 55 per cent majority shares while the ET will have 45 per cent minority shares.
Mr Speaker, the Government, through the IDC, is in the process of appointing a board of directors for the national airline which is currently being vetted by various Government wings to determine their suitability to serve on the board. Soon after the board is formally appointed, it will immediately appoint the Chief Executive Officer (CEO) of the national airline and other top management staff.
Sir, the airline’s top management team shall recruit support staff and commence to build systems for operationalising the airline including certification and registration of the equipment. The certification and registration process will take a minimum of 116 days from the day the CEO for the national airline lodges the application papers for the air operator’s certificate with the Civil Aviation Authority (CAA). As certification is on-going, the national airline management team will recruit and train the air crew, ground handling staff, marketing and aircraft maintenance staff. The team will also prepare various operational manuals which are a requirement by the International Civil Aviation Organisation (ICAO) and the Civil Aviation Act, 2016.
Mr Speaker, given the time frame it will take to complete the airline certification and registration processes, which is estimated to last a minimum of 116 days, we can safely say that the launch of our national airline will take place in the first quarter of 2019. We will inform this House and the public at large of the exact date once the management which is constituted by the board is put in place.
Sir, as the Government, we are aware that the transformation of the Kenneth Kaunda International Airport (KKIA) into an aviation hub is premised on a good network of international airlines flying into Zambia from various international destinations. In order to attract international carriers to fly into Zambia, the Government, under the able leadership of His Excellency the President, Mr Edgar Chagwa Lungu, has signed bilateral air service agreements (BASAs) with other countries in order to create a mutually beneficial framework that will allow an easy movement of airlines into Zambia from various destinations across the globe. The BASAs signed will also allow the seamless passage of the airline’s aeroplanes into various countries that we have signed the agreements with.
Mr Speaker, in the recent past, the Government has also signed BASAs with the Royal Kingdom of Saudi Arabia, Morocco and the Republic of Turkey. Following the signing of the BASA with the Government of Turkey, the Turkish Airlines will commence commercial flights into Lusaka from Istanbul within the last quarter of this year. This will create the most direct flight into Lusaka from Europe and will, therefore, reduce the flight time for passengers travelling to Lusaka from Europe. It is also envisaged that the introduction of Turkish Airlines flights into Zambia will make entry into Europe cheaper and thus cut the air fares for Zambian travellers into Europe. This will lead to improved airline connectivity between Zambia and Europe. The improved air transport connectivity to peripheral regions will also increase the appetite for multinational firms to invest in Zambia. The introduction of the flights will also improve trade between Zambia and Turkey.
Sir, in terms of our readiness for Turkish Airlines to commence flight operations into Lusaka, the Ministry of Transport and Communication has since submitted to the Turkish Airlines the necessary requirements for certification to commence operations into Lusaka. The CAA has since received and evaluated the formal application for the permit validation from Turkish Airlines while the Ministry of Transport and Communication is in the process of issuing the air service permit which will be ready within this month.
Mr Speaker, the Turkish Airlines has indicated the desire to commence two flights into Lusaka per week from Istanbul. This is the beginning of our vision to transform Lusaka into a transport and logistics hub of the Southern Africa region.
Sir, in closing, I want to thank His Excellency the President, Mr Edgar Chagwa Lungu, for maintaining warm bilateral relations with Turkey and other countries which we have signed BASAs with. I also want to thank Her Honour the Vice-President, Mrs Inonge Mutukwa Wina, for the leadership and supervision she has ably given my ministry in the discussions with the Turkish Airlines to make sure that the first flight by Turkish Airlines into Lusaka is successful.
Mr Speaker, I thank you.
Hon. Government Members: Hear, hear!
Mr Speaker: Hon. Members are now free to ask questions on points of clarification on the statement which has been delivered by the hon. Minister of Transport and Communication.
Mr Lufuma (Kabompo): Mr Speaker, I would like to take this opportunity to thank the hon. Minister of Transport and Communication for the statement that he has delivered this afternoon.
Mr Speaker, airlines all over the world, especially those in Africa, in particular, are not performing well. The experts have warned and advised the Zambian Executive not to go into establishing a national airline because of the pitfalls which have been experienced by other airlines that have existed before, including Zambia Airways. What makes the hon. Minister think that the Zambia Airways (2014) Limited will be successful?
Mr Mushimba: Mr Speaker, I wish to thank the hon. Member for that question. It is an important question because we have seen some national airlines that have struggled and others that have collapsed such as ours in 1994. In the same token, we have also seen some national airlines that have performed admirably. One of them is our strategic partner, the ET. It has been profitable for a long time and is the best on the continent. Therefore, we can learn a thing or two from it. That is possibly why we went into the partnership with that particular airline.
Sir, we are confident about the success of the national airline, especially now, because of what I spoke to in terms of the market. If you look at the aviation sector’s projected growth in Africa, and Zambia in particular, you will see that it is pegged at 13 per cent year-on-year. If you look at traffic in Zambia particularly, you will see that it stands at 1.5 million passengers and has been growing by 10 per cent every year. This is projected to continue growing at that rate for the next ten to twenty years. The other reason is that of the partnership we have signed with an entity which knows something about running a national airline. Further, we are confident because the Government is committed to making sure that this airline is run as professionally as possible with no interference from politics and downloading all the good corporate governance dictates. We are confident that the time to have a national airline reintroduced cannot be more right than now because in the diversification agenda that His Excellency the President has been preaching about tourism, agriculture and industrialisation, you cannot remove connectivity or the appropriateness of air travel. Thus, the setting up of an airline is important to the agenda.
I thank you, Sir.
Dr Chanda (Bwana Mkubwa): Mr Speaker, we are grateful that the Patriotic Front (PF) Government is actually bringing a national airline to life after over twenty years of its absence. Now that we know that the Ethiopian Airlines (ET) is actually one of the major airlines servicing Southern Africa and East Africa, and potentially, the Zambia Airways (2014) Limited is going to be its competitor, how does the ministry hope to manage the competition when it gets fierce between the two airlines?
Mr Mushimba: Mr Speaker, the question by Hon. Dr Chanda is definitely one which has to be addressed considering the face of the corporation and the partnership which the Government has entered into. This question was addressed when we first hammered out the contracts and partnership agreements which the Government has signed with the ET. The ET is coming in as a minority partner at 45 per cent while the Zambian Government is coming in as the majority partner at 55 per cent.
Sir, in the agreements which the Government has signed, we have made sure that Zambia Airways (2014) Limited is protected so that it can compete fairly with any airline including the ET. The clauses which have been put in the contracts demonstrate that the Zambia Airways (2014) Limited will not be impeded at all by the ET because the partnership is only to allow the entity to compete fairly. So, in all the shareholder, maintenance and management agreements, which the Government has signed, we have made sure that the autonomy of this airline is maintained. I can assure you that there will be no restrictions or hindrances from the ET for Zambia Airways (2014) Limited to compete fairly with it on any route in Africa or internationally.
I thank you, Sir.
Ms Mwashingwele (Katuba): Mr Speaker, in his statement, the hon. Minister spoke about the issue of employment and actually, he mentioned the categories which will be looked at, at first. Is the hon. Minister able to tell this august House the total number of the Zambians who will be employed?
Mr Mushimba: Mr Speaker, in the business modelling of the entire thought process into the rebirth of the national airline, the focus was in terms of the number of people to be employed. Firstly, we are going to start with three planes that are going to service a few regional and domestic routes with a certain number of people whom we will start with. As we start growing, after three of four years, we will add more regional and international routes. We are looking at a full capacity of, at least, 500 employees to be directly employed by the national airline. Like I said, to every job that the national airline will create, there will be about seven other jobs which will be created due to the domino effects. There will be other industries which will be created around the national airline.
I thank you, Sir.
Mr Zimba (Chasefu): Mr Speaker, my question is a rider to the one which was asked by the hon. Member of Parliament for Katuba. The Ethiopian Airlines (ET) like any other company, would want to protect its interests in the Zambian Airways (2014) Limited. Now, in terms of staffing, I have in mind the Indo-Zambia Bank (IZB), where the Managing Director is from India while the General Manager is from Zambia. The top management at the IZB is mostly of Indian origin. Do we expect to see the same scenario at the national airline, looking at the ET wanting to protect its interests?
Mr Mushimba: Mr Speaker, as Zambia, part of the reason we insisted on being the majority shareholder in the discussion with the ET or any potential partners whom we spoke with, was to protect what our vision for the national airline was at the beginning. The protection of that vision included having the autonomy on which routes to fly, how to use the national airline to grow certain industries and meeting all the objectives that we set, including employment creation.
Sir, the agreement on employment says that a seven member board will be appointed, four from Zambia and three from the Ethiopia. The board chairperson will be chosen from the four Zambian members. The board will then be instructed to hire top management. The instruction is to hire the best professionals from anywhere they are residing so that we give ourselves a chance to run this institution just as any other good business. We prefer the top management to be Zambian. We know that as Zambia, we trained many aviation experts when Zambia Airways was operational. We know that they are out there. We are appealing to them to apply for the top management jobs. However, the basis for hiring top management is to initially hire the best to make sure that we give Zambia Airways (2014) Limited a chance to be a sustainable venture moving forward.
I thank you, Sir.
Mr Ng’ambi (Chifubu): Mr Speaker, I wish to thank the hon. Minister for that well-articulated statement. The hon. Minister has indicated to this House that in the medium-term, the airline is going to service domestic and regional routes. In the long-term, he indicated that the airline will be able to service the intercontinental routes. From the business model, can the hon. Minister indicate how many offices the airline intends to open in foreign countries?
Mr Mushimba: Mr Speaker, obviously, the number of offices which will be opened will be dictated by the routes which we will use, how busy they are and the best way to service them. We will, obviously, manage not to be wasteful. We will not open offices which will bring a minimal value to this venture. So, in our business model, we want to start with domestic routes. Today, there are many routes domestically which are not being serviced by Mahogany and Proflight. We want to make sure that such routes are opened up. The ministry plans to work on all the provincial airports, aerodromes and airstrips to make sure that we cultivate a new cadre of air travellers. We will bring them to Kenneth Kaunda International Airport (KKIA) so that they can now start flying internationally as well. So, wherever the national airline will start flying, and the business case is made for offices, we are going to open them.
I thank you, Sir.
Dr Musokotwane (Liuwa): Mr Speaker, the plan to reopen Zambia Airways is similar to the principle which would be behind the Government deciding to reopen the United Bus Company of Zambia (UBZ).
Hon. Member: Hear, hear!
Dr Musokotwane: Mr Speaker, I say so because already, there are a number of players in the airline industry in Zambia. The hon. Minister mentioned Mahogany and other companies. What is the motivation of risking public money trying to compete in an industry where the private sector is already active?
Mr Mushimba: Mr Speaker, that is a very important question. We sat to analyse the market by business modelling and consulting a lot of experts. We questioned everything. At the end of it all, when we came up with the plan that we have, we actually addressed the question which the hon. Member has asked.
Sir, as a country, we have invested heavily in all forms of transportation, especially under the Patriotic Front (PF) Government of His Excellency the President, Mr Edgar Chagwa Lungu. There has been no skewness in terms of investments. There have been equal investments in aviation, road, water and railway transportation. As we looked at the potential of the aviation sector, we realised that it is a very unique industry. It probably cannot be compared to transportation by road. We have embarked on diversifying the economy with regard to tourism, agriculture and industrialisation. The industries which we want to diversify into require a lot of foreign direct investment (FDI), especially if we talk about tourism. At the moment, someone would probably need to make between seven to ten connections over three days to travel from Europe to go and see our nice white sandy beaches in Samfya. I do not know how we are going to grow our tourism sector with such encumbrances.
Mr Speaker, the PF Government does not just talk about things. People and previous Governments have spoken about diversifying the economy without putting the necessary infrastructure in place. What we are doing here is making sure that we do more than just speak about things. We want to facilitate the happening of the things which we talk about. Tourism must be facilitated. Air transport is key to ensuring that we facilitate that connectivity. We need more direct connections to grow some industries. When Zambia Airways used to be operational, we used to export flowers to France. That industry died with Zambia Airways because you cannot send flowers that will take three days to reach France as they would wither.
Sir, this is the rebirth of the national airline. As we speak about growing and diversifying the economy, we need to provide the necessary tools to ensure that the diversification process becomes a reality.
I thank you, Sir.
Hon. Government Members: Hear, hear!
Dr Kambwili (Roan): Mr Speaker, I want to be on record as having advised the Government that this route it is taking will not work. It is a wrong decision for Zambia. Nalikwebele tabulapo.
Hon. Government Members: Meaning?
Dr Kambwili: Sir, it means that in future, there will always be a person who will say that he/she warned you. In future, I will tell those in Government that I warned them.
Sir, how does the hon. Minister come to Parliament to tell us about establishing an airline without telling us how much is going to be invested in it and where the money is going to come from, in view of the fact that our economy is struggling? Is there no liquidity in the market? How much is the Government investing in the airline and where is it getting the money?
Hon. Opposition Members: Hear, hear!
Mr Mushimba: Mr Speaker, I wish to thank Hon. Dr Kambwili, the PF Member of Parliament for Roan Parliamentary Constituency, for that question.
Hon. Government Members: Hear, hear!
Laughter
Mr Mushimba: Sir, we carried out an analysis on how much it would cost to make this investment. When we announced our partnership with the ET, we also announced a US$30 million investment which was the initial amount required to start this venture. The Government’s shares are owned by the IDC. We did that because the IDC has its own balance sheet which can make it possible for the entity to go into the market to raise resources to invest in ventures such as the airline.
Mr Speaker, because of how lucrative and profitable the forecast has been for this national airline, based on the traffic count, growth projections, aviation investments which we have made and certification of our airports which we are receiving almost daily, there are people in the market who are willing to invest in this venture. The Treasury will not be as burdened as people may assume when the national airline becomes operational.
I thank you, Sir.
Mr Kabanda (Serenje): Mr Speaker, from where I am standing, I see a lot of competition from the already established airlines. What special skills or strategies are going to be applied to outwit the competition?
Mr Mushimba: Mr Speaker, indeed, there is some competition that the newly established airline is going to face domestically and internationally. However, what gives us comfort is that there are certain routes that are not currently being serviced domestically and internationally. If you look at domestic routes, I do not think there is a flight between Lusaka and Nakonde, which is an interesting route which gives us access to the northern part of Zambia. There is no one servicing the Lusaka/Chipata and Lusaka/Mansa routes right now. There are many routes that are not being serviced that need to be serviced.
Sir, our strategy is to start out as a budget airline which will enable us to compete very aggressively in terms of pricing. We want to make sure that we are efficient by deploying equipment that is fuel efficient. We will fill the seats with people because we will be servicing routes that are important which are not being serviced right now. In doing this, we are actually going to cultivate a new cadre of travellers by opening up routes that are not being serviced. That way, we will make flying with the national airline affordable.
Mr Speaker, at the moment, one of the hindrances to growing ...
Interruptions
Mr Speaker: Order on the left!
Mr Mushimba: ... air travel is the price. I usually give examples of the Lusaka/Ndola route which, not too long ago, would cost K4,000 for a round trip. It was very prohibitive to fly that route except for people that were corporate travellers whose fares were paid for by companies. However, when Mahogany came on board, we saw a reduction in the price by almost 50 per cent. When the national airline comes on board and competes on this route, we are going to make sure that the end winners are the consumers because they are going to be able to afford flying. It will be a question of how efficient we shall be with our processes such as how fast we will be turning around our planes and how often we will fly on these routes. We can start making profits based on volume versus what has been obtaining.
I thank you, Sir.
Mr Musonda (Kamfinsa): Mr Speaker, to start with, how many aeroplanes, makes and models will the airline start with? Secondly, will the aeroplanes be leased or owned by the airline?
Mr Mushimba: Mr Speaker, business plans, models and forecasts were done to determine the equipment which we needed to fly on the routes we want to service. We settled on three aeroplanes that will be leased to own, which means that once they come in, we will be paying a lease amount which will be going towards the ownership of the aeroplanes. We have zeroed in on two turboprop planes like the Bombardier Q400 and a Boeing 737 to start servicing the initial phase when we launch the airline.
I thank you, Sir.
Mr Chansa (Chimbamilonga): Mr Speaker, since the Government has revamped the national airline and is aiming to promote tourism and other activities, is it considering constructing Kasaba Bay International Airport?
Hon. Government Members: Hear, hear!
Mr Mushimba: Mr Speaker, the Northern Circuit is actually an interesting destination for the national airline which includes Kasaba Bay and Mbala Airport which has just been commercialised and that used to belong to the Zambia Air Force (ZAF). We are opening up the Northern Circuit to ensure that we access more areas in the country by road, air, water and the railway. Plans are underway to ensure that we create new destinations such as Kasaba Bay.
Mr Speaker, I thank you.
Mr Lihefu (Manyinga): Mr Speaker, I am sure the hon. Minister is aware that the Civil Aviation Authority (CAA) has revised the levies upwards even for airstrips that are in rural areas which are run by missionaries. Does the hon. Minister not think that the revising of the levies upwards will make the operations of the missionaries in rural areas who depend on grants difficult?
Mr Speaker: Hon. Member for Manyinga, that subject has nothing, whatsoever, to do with the statement given.
Ms Chisangano (Gwembe): Mr Speaker, I would like to find out from the hon. Minister what measures have been put in place to ensure that the airline will not be misused by political cadres in unnecessary entourages that will not pay for tickets.
Mr Speaker, I thank you.
Mr Mushimba: Mr Speaker, I touched on this subject earlier. We have learnt our lessons from the collapse of the Zambia Airways as well as other airlines on the continent and outside that are struggling. We have also learnt lessons from airlines that are profitable, including our partner, the ET, which has been profitable for a long time. It is lean and efficient because there are certain things that it does that Zambia Airways (2014) Limited will copy. Part of the reason we invited the ET to be our partner is obviously to ensure that it brings the technical, commercial and operational knowhow so that we start on a solid footing.
Sir, we are going to ensure that good corporate governance and necessary controls are instituted. Political interference is certainly something that His Excellency the President and I have spoken about. We will ensure that it ends upon the appointment of the board. We will also ensure that the airline is run as a business with all the dictates of good business practices.
Mr Speaker, I thank you.
Mr A. Mumba (Kantanshi): Mr Speaker, I must mention that there is a mismatch between the infrastructure which is supposed to support what the Government is trying to do, particularly the airports that are being upgraded, with the size of the aeroplanes which the hon. Minister has talked about. Even just the …
Mr Speaker: Hon. Member for Kantanshi, you may have very valid points to make, but the problem is the context. The issue here now is for you to seek clarification and not to debate. You are debating.
Mr A. Mumba: Mr Speaker, I thank you for your guidance. Could the hon. Minister share with us the cost implication of the interest that the Government will be paying on the lease for the aircrafts.
Mr Mushimba: Mr Speaker, if I understood the question well, the hon. Member wants to know the cost implication as regards the interest and fees that we are going to pay for the lease. As stated earlier, we couched the agreement to our maximum benefit. We want to ensure ownership by the Zambia Airways (2014) Limited of the planes which it will acquire under this arrangement as quickly as possible. We will ensure that the bulk of the money that we will be paying for the planes that we will have goes towards the ownership or the principal debt.
Mr Speaker, with what I saw in the lease to own agreement, I am very comfortable that the fees and cost of the leasing is minimal. The bulk of the money will be going to the payment of the principal debt. The ownership of the planes will be sooner rather than later. The cost implication, therefore, is something that is palatable because it was worked into the overall picture as regards the numbers and profitability of the national airline.
Mr Speaker, I thank you.
Prof. Lungwangwa (Nalikwanda): Mr Speaker, I think that we still need further clarifications. As the hon. Minister is aware, establishing an airline has various cost parameters. For example, there are costs on the aircrafts, fuel, staff training, staff remuneration and infrastructure beyond the Kenneth Kaunda International Airport (KKIA). This is a total package. I am sure that in their business analysis and modelling, they must have come up with an initial total packaging cost of establishing the airline. Can the hon. Minister shed light on this for our benefit and that of the nation.
Mr Mushimba: Mr Speaker, the hon. Member’s question is well put. Being a former hon. Minister of Transport and Communication, this was probably one of the projects he looked at. I agree with him that the cost parameters are, indeed, the ones he highlighted with fuel and staff related costs being the highest. There is also the acquisition of equipment and, obviously, the operational costs as the business starts. All of these issues were looked into.
Mr Speaker, in an earlier answer I gave, I said that we had calculated US$30 million as the first injection to get the airline off the ground. This is the money that has been secured and will meet all our initial costs as stated above.
Mr Speaker, I thank you.
Mr Daka (Msanzala): Mr Speaker, is the equipment that the ministry wants to hire from the Ethiopian Airlines (ET) on wet or dry lease? Since we want to make Zambia as a hub of air transport in the region, can we look at the international speed limit standard for going into the airport? Our speed limit is 60 km per hour when the international standard is a minimum of 100 km. As we begin this airline, can we ensure that the speed limit is lifted.
Mr Mushimba: Mr Speaker, I am surprised how he snuck in two questions instead of one as per the rules.
Mr Speaker, considering that we have timelines on which we want to get in the air, the idea is that we do a wet lease. We will actually have the planes coming into the country with pilots so that we give the Zambia Airways (2014) Limited an opportunity to orient the pilots it is going to hire to the type of equipment that it will have. At a certain time, the pilots can then be let go because the airline’s employees would have been capacitated. This is the idea.
Mr Speaker, as regards the issues related to the speed limit for going into our airports, it is outside the statement I gave. However, as a bonus answer, I wish to state that we can review the speed limits to ensure that we balance the safety and efficiency needs of the people getting to our airports.
Mr Speaker, I thank you.
______
QUESTIONS FOR ORAL ANSWER
CONSTRUCTION OF HEALTH POSTS IN KAPUTA
61. Mr Ng’onga (Kaputa) asked the Minister of Health:
- when the construction of health posts in Kaputa District under the 650 Health Posts Project will commence;
- how many health posts will be constructed;
- where the health posts will be situated; and
- what the time frame for the completion of the project is.
The Minister of Health (Dr Chilufya): Mr Speaker, the construction of health posts in Kaputa District under the 650 Health Posts Project has commenced. The contractor has started mobilising in the four provinces where the contract was initially terminated.
Sir, the actual date for Kaputa is 30th October, 2018, and the project is expected to be completed within eighteen months. The two health posts will be constructed in Kaputa District and shall be situated in Kasepa and Chipili.
Mr Speaker, I thank you.
Mr Simbao (Senga Hill): Mr Speaker, I wish to thank the hon. Minister for the encouraging answer. However, is he aware that the people of the Northern Province and, in particular Kaputa, are very upset because the health posts have not yet been constructed? Is he also aware that if the health posts are not constructed this time, the party will lose popularity terribly?
Dr Chilufya: Mr Speaker, I am aware of what the hon. Member has said. The consolation is that the construction of the health posts in Kaputa will commence on 30th October, 2018. The contractor is in the country and is actually just mobilising countrywide.
Mr Speaker, I thank you.
Mr Mung’andu (Chama South): Mr Speaker, the contractor is supposed to construct health posts not only in Kaputa but also in the Luapula Province, Northern Province and Muchinga Province. Is the hon. Minister in a position to clarify when the contractor will construct health posts in Kaputa and Chama South?
Dr Chilufya: Mr Speaker, I would like to remind the House that this question was dealt with comprehensively two weeks ago. We gave the timelines for the construction of health posts in the four provinces. Let me reiterate our consistent position that the contractor is in the country and he has planned to start the works between 1st October and 10th October, 2018. True to his word, he has arrived in the country. As I speak, he is working out modalities of being in every part of the four provinces. So, the mobilisation in all the four provinces will take place by 30th October, 2018.
Mr Speaker, I thank you.
SOCIAL CASH TRANSFER SCHEME BENEFICIARIES
62. Mr Hamusonde (Nangoma) asked the Minister of Community Development and Social Welfare:
- what the total number of beneficiaries under the Social Cash Transfer Scheme was, as of 30th April, 2018, countrywide;
- whether the Government has any plans to increase the number of beneficiaries; and
- if so, when the plans will be implemented.
The Minister of Community Development and Social Welfare (Ms O. Phiri): Mr Speaker, the total number of beneficiaries under the Social Cash Transfer Scheme as at 30th April, 2018, was 574,663.
Sir, the Government plans to increase the number of beneficiaries to 700,000 by December, 2018, countrywide.
Mr Speaker, the implementation of the plans to increase the number of beneficiaries is already underway. The ministry is currently conducting the enumeration of the registered households.
Thank you, Mr Speaker.
Mr Ng’onga: Mr Speaker, what is the percentage of the Government’s contribution to the Social Cash Transfer Scheme?
Ms O. Phiri: Mr Speaker, the Government provides 75 per cent of the funding to the Social Cash Transfer Scheme.
Mr Speaker, I thank you.
Hon. Government Members: Hear, hear!
Mr Mwiimbu (Monze Central): Mr Speaker, I would like to ask the hon. Minister of Community Development and Social Welfare to refer to page 23 of the President’s Speech that was delivered to this House. She has just told us that the number of beneficiaries under the Social Cash Transfer Scheme is currently 574,663. The President said that the programme is being scaled up to reach a total of 700,000 beneficiary households countrywide by the end of this year and that currently, 632,020 are benefitting. Who is telling the truth?
Ms O. Phiri: I did not get his question, Sir.
Interruptions
Mr Speaker: Hon. Leader of the Opposition, could you put your question in an abbreviated manner.
Interruptions
Mr Speaker: Order!
Let us have some order, please.
Mr Mwiimbu: Mr Speaker, the hon. Minister has told this House and the nation that currently, there are 574,663 beneficiaries under the Social Cash Transfer Scheme in this country. When the President came to address us, he stated that currently, 632,020 households are benefitting from the scheme. The question is: Who is telling the truth?
Ms O. Phiri: Mr Speaker, the hon. Member of Parliament for Nangoma asked what the number of beneficiaries was as of April and not currently. The President stated the current number of beneficiaries.
I thank you Sir.
Hon. Government Members: Hear, hear!
Dr Kambwili (Roan): Mr Speaker, the donors have withdrawn or withheld their support to this programme. The hon. Minister has said that the Government provides 75 per cent of the funding which is needed while donors cover 25 per cent. The hon. Minister has also informed the House that the ministry intends to increase the number of beneficiaries. In view of the fact that we do not have money in the economy, where is the Government going to get the funds to cover the 25 per cent donor component plus the cost for the increased number of beneficiaries?
Ms O. Phiri: Mr Speaker, the donors have not withdrawn their aid. They have just suspended it.
Mr Kambita: That is a withdrawal.
Mrs Simukoko: Hear, hear!
Ms O. Phiri: Mr Speaker, after we sit down with the donors, they will make a conclusion. Thereafter, they will come back …
Interruptions
Mrs Simukoko: Hear, hear!
Ms O. Phiri: … and we will continue with our payments to support the vulnerable people.
I thank you, Mr Speaker.
Hon. PF Members: Hear, hear!
Mr Chabi: Quality!
Mr Lihefu (Manyinga): Mr Speaker, I would like to thank the hon. Minister for the answers.
Interruptions
Mr Speaker: Order on the left.
Mr Lihefu: Sir, would the hon. Minister be able to tell this august House and the nation how much each beneficiary has been getting.
Ms O. Phiri: Mr Speaker, the hon. Member is not specific on which beneficiaries he is referring to. There are various payments to different categories of the vulnerable people.
I thank you, Mr Speaker.
Hon. Government Members: Hear, hear!
Mr Mung’andu: Mr Speaker, is the hon. Minister in a position to share with all the hon. Members of this House the names and numbers of the beneficiaries in each constituency so that we are able to make follow-ups?
Mr Speaker: Hon. Member for Chama South, I want to be clear. Are you saying today or in future?
Mr Chabi: Through the pigeonholes.
Mr Mung’andu: Mr Speaker, through the pigeonholes.
Ms O. Phiri: Mr Speaker, my office can provide that information.
I thank you, Mr Speaker.
Hon. PF Members: Hear, hear!
Mr Hamusonde: Mr Speaker, may I find out from −
Dr Kambwili: Wiipusha mu Chitonga.
Laughter
Mr Hamusonde: Stop disturbing me.
Laughter
Mr Hamusonde: Mr Speaker, is it possible for the hon. Minister to tell me when the beneficiaries are going to be paid their balances from January to date because the last payment in Nangoma was in January 2018 and today, we are in October.
Dr Kambwili: Iwe, tawaishiba? Kwaliba ama arrears.
Ms O. Phiri: Mr Speaker, I would like to inform the hon. Member for Nangoma that we shall pay the beneficiaries when funds are made available by the Ministry of Finance.
Hon. UPND Members: Owe!
Dr Kambwili: When?
Hon. Government Members: Hear, hear!
Mr Nanjuwa (Mumbwa): Mr Speaker, I am aware that the Social Cash Transfer Scheme beneficiaries are in arrears because the Government has not been able to pay them on time. However, the hon. Minister is indicating that she wants to increase the number of beneficiaries when her ministry has not been able to pay the current beneficiaries on time. How can she reconcile the two positions?
Ms O. Phiri: Mr Speaker, the Government has a mandate to clear the arrears. In this coming financial year, the Government will make sure that the beneficiaries receive their money.
I thank you, Mr Speaker.
Ms Chonya (Kafue): Mr Speaker, for the sake of the potential beneficiaries out there, can the hon. Minister tell us the different types of packages that her ministry offers under this Social Cash Transfer Scheme.
Ms O. Phiri: Mr Speaker, I will come back to the House to give details of the different packages. I do not have that information right now.
Mr Speaker, I thank you.
Hon. PF Members: Hear, hear!
Mr Chabi: Quality
Mr Livune (Katombola): Mr Speaker, I am grateful for the opportunity to ask a question. When there was a demand from some donors that the money which was misused or abused be refunded by this country, we learnt that some funds were refunded. Is it true that the Government has refunded some donors?
Ms O. Phiri: Mr Speaker, what I can say on that matter is that the investigations are still ongoing. I think it is too early for me to start pre-empting the investigations. I will wait until the investigations are concluded to give a detailed report to this House.
I thank you, Mr Speaker.
Hon. Members: Hear, hear!
MUFUMBWE TOWNSHIP ROADS
63. Mr Kamondo (Mufumbwe) asked the Minister of Local Government:
(a) when the contractor who gravelled the township roads in Mufumbwe District will be paid;
(b) what has caused the delay in paying the contractor; and
(c) when tarring of the roads at (a) will commence.
The Minister of Local Government (Mr Mwale): Mr Speaker, I wish to inform this august House that the contractor will be paid once the funds are released by the Ministry of Finance. The delay to pay the contractor has been caused by budgetary constraints. The tarring of the road will resume once funds are made available.
I thank you, Mr Speaker.
Mr Lihefu: Mr Speaker, the people of Mufumbwe are very annoyed because these township roads −
Mr Speaker: Hon. Member, ...
Laughter
Mr Speaker: ... this is time for clarifications and not for you to render reports.
Do you have anything to clarify?
Mr Lihefu: I wanted to make a clarification.
Mr Speaker: Ask a question of clarification.
Mr Lihefu: Mr Speaker, thank you very much for your guidance. Were these township roads budgeted for? If they were, why has the contractor not been paid on time so that he can start working on the roads?
Mr Mwale: Mr Speaker, indeed, the township roads were budgeted for, but, time and again, we have said to this Parliament that a budget is a wish list, whether we like it or not.
Mr Michelo: It is a what?
Mr Mwale: Sir, it is a wish list of the things we want to do.
Mrs Simukoko: Hear, hear!
Mr Mwale: Sir, on the other side of things, you will have to raise money to be able to meet the demands of the wish list.
Mrs Simukoko: Hear, hear!
Mr Mwale: Sir, we have not been able to raise the money to pay the contractor even though the allocation was in the Budget which was rightly approved by this House.
Mr Speaker, what the Government did was try to make arrangements to find extra money to deal with all the contracts that were above the 80 per cent completion level so that we could clear them off before we could start new projects.
I thank you, Mr Speaker.
Mr Kamondo: Mr Speaker, I would like to find out from the hon. Minister whether the gravelling of the roads in Mufumbwe is like the projects which the Government is undertaking which are above 80 per cent –
Mr Lufuma: On a point of order, Sir.
Mr Speaker: A point for order is raised.
Mr Lufuma: Mr Speaker, I would like to thank you for giving me this opportunity to raise a very important point of order. This august House has a schedule to meet and discuss the Budget for four months. This is a very important document to the nation. Here we are now, Sir, with one hon. Minister of Local Government, calling the Budget as a wish list.
Laughter
Mr Lufuma: Sir, seriously, is the hon. Minister in order to trivialise the Budget, which goes through a process of four months of debates, by calling it a wish list? Is he in order to say that the Budget is a wish list, meaning that we are wasting our time debating it?
Hon. Opposition Members: Hear, hear!
Mr Speaker: I think we are dealing with a matter of expression here, which I may also call semantics. If we want to be very formal and to put this matter to rest, we would say that a budget is a financial plan.
Hon. Government Members: Correct!
You may continue, hon. Member.
Mr Kamondo: Mr Speaker, I would like to find out from the hon. Minister whether the project for upgrading the roads and gravelling in Mufumbwe is above 80 per cent completion level or not and also whether the Government is going to fund it.
Mr Mwale: Mr Speaker, only 40 per cent of the works have been carried out on the roads in Mufumbwe.
I thank you, Mr Speaker.
Mr Muchima (Ikeleng’i): Mr Speaker, the Patriotic Front (PF) was loud and clear over the township roads. Nothing has been done in Mufumbwe and other districts in the North Western Province with regard to the townships roads. The hon. Minister is saying that the Government will work on the roads when money will be available. I would like to know whether the Government has included money in the 2019 Budget for the road works in question to be completed.
Mr Mwale: Mr Speaker, yes, we wish to fulfil this project. So, once funds are made available, we will work on the road. The outstanding amount to be paid is only K31 million. Therefore, once the hon. Minister of Finance makes available that money, we will be able to fulfil this wish.
I thank you, Mr Speaker.
Mr Mwiimbu: Mr Speaker, the hon. Minister may have noticed that similar questions are being asked by a number of my colleagues on your left and right. Does the hon. Minister not think that it is prudent on his part to come up with a plan of informing this House and the nation on how he is going to address the issue pertaining to the tarring of the township roads? You may also notice that there is another similar question which is coming up.
Mr Mwale: Mr Speaker, there is no harm in doing that. I suppose we have just been constrained with time. We thought we needed to actually just hold a workshop within the precincts of Parliament to discuss this issue in detail. So, we intend to do that hopefully, we will find some time.
I thank you, Mr Speaker.
Mr Speaker: I will take the last three questions from the hon. Member for Mufumbwe again, hon. Member for Mazabuka Central and lastly, the hon. Member for Mitete.
Mr Kamondo: Mr Speaker, the contractor for the project in Mufumbwe had carried out a lot of jobs such that he had shifted all his equipment to the area and even set up a quarry. Does the hon. Minister think that the delay to fund the project might actually end up forcing the contractor to demobilise, which is going to be costly for the Government? Does he not think so?
Mr Mwale: Mr Speaker, yes, under the circumstances, the contractors would have to demobilise so that they do not incur a lot of costs on their part because they have to keep on watching over the equipment, paying the people who are maintaining the equipment and so on and so forth. This is what normally happens. However, we have always been able to negotiate with the contractors that at the time they are mobilising again, they do not charge us extra costs. Most of the contractors have agreed with us to proceed in that manner. We hope that when we find the money, we will negotiate with the contractor so that we are not charged for extra costs.
I thank you, Mr Speaker.
Mr Nkombo (Mazabuka Central): Mr Speaker, defaulting on a contract such as the township roads contract in Mufumbwe and many other towns, including the town where I hail from, attracts penalties. The hon. Minister has just said that the ministry is now negotiating with the contractors so that that they do not factor in the cost for demobilisation. I would like to find out from the hon. Minister whether now that the there is no money to finish the works on many township road projects, the Government has funds to pay the default penalties?
Mr Mwale: Mr Speaker, at the moment, there are no penalties to talk about. In addition, I would to thank His Excellency the President for using his wisdom to guide us further that, in fact, we first needed to deal with contracts which were almost complete before we could engage new ones to avoid having new contracts piling up when we have old ones which are still outstanding. So, at the moment, we cannot talk about any penalties because we have not been charged with any.
I thank you, Mr Speaker.
Mr Speaker: The last question will be from the hon. Member for Mitete.
Mr Mutelo (Mitete): Mr Speaker, I would like the hon. Minister to make it clear to the people of Mufumbwe with regard to what they should get from what he has said. Are the works going to be carried out when funds are made available by the hon. Minister of Finance or after the projects which are at 80 per cent completion level are completed because the hon. Minister has just said that the project under discussion is at 40 per cent completion level? So, which statement should the people of Mufumbwe go for?
Mr Mwale: Mr Speaker, I will clarify the issue by stating that the projects date as far back as 2011, 2012, 2013 up to now. For now, we have been guided to, first of all, request for money from the Ministry of Finance to deal with the projects which are at 80 per cent completion level and above. Once these projects are completed, we will then come to those which are at 50 or 60 per cent completion level in order to take them out of our way before going to the next level until we finish everything. After that, we will then begin to contract new works because we will have dealt with the backlog which goes as far back as 2011. The hon. Member should remember that the projects were catered for in other financial years, but we now have to look for money to deal with them in this particular financial year or the next one. I hope this clarifies the issue.
I thank you, Mr Speaker.
LOCAL AUTHORITIES SUPERANNUATION FUND ANNUITIES
64. Mr Lufuma (Kabompo) asked the Minister of Local Government:
- whether the payment of annuities to beneficiaries by the Local Authorities Superannuation Fund is up to date;
- if not, why the payment is not up to date;
- what the total amount owing is; and
- when the outstanding amount will be paid.
Mr Mwale: Mr Speaker, I wish to inform the House that the payment of annuities to the pensioners of the Local Authorities Superannuation Fund (LASF) are not up-to-date. The payments of the annuities to the pensioners are not up-to-date because of the declining financial performance arising from the impact of the closure of LASF before new members could be paid their dues.
Mr Speaker, as of 31st July, 2018, the retirees were owed a total of K453.81 million broken down as follows:
- K99.8 million owed to retirees in receipt of annuities; and
- K354.01 million owed to retirees in form of lump sum retirement benefits.
Mr Speaker, the Government targets to pay all the outstanding annuities and lump sum retirement benefits by the end of 2019, subject to the availability of funds.
Mr Speaker, I thank you.
Mr Lufuma: Mr Speaker, this question was prompted by retirees who were on this fund. Unfortunately, the person who asked me to ask the hon. Minister this question passed on last month. He is gone and his name was Mr Simutonga. The retirees have been waiting for this money for a long time. Is the hon. Minister honestly able to confirm whether or not this money will be paid? Can he tell the people what the correct position is. Is this fund defunct?
Mr Mwale: Mr Speaker, I would not say defunct as such because I think there is still some level of operation that can be redeemed from the situation going on with LASF. I do not know if I can make a commitment beyond the one which I have made. I said that our target is to try to clear the arrears by 2019. There are many efforts that we are making as the Government to make sure that we do that.
Mr Speaker, the situation six months ago was different, but the Government pumped in K250 million in the process. That is why we have this kind of a situation at the moment. Our target is that by 2019, we should have dealt with all the problems. By then, the pension reforms that are being spearheaded by the Ministry of Labour and Social Security will have kicked in to make sure that there is sustainability going forward.
I thank you, Mr Speaker.
Mr Livune: Mr Speaker, is the hon. Minister able to state whether this institution is bankrupt considering the fact that it must have some serious negativity in terms of its standing in the pension sector?
Mr Mwale: Mr Speaker, I would say that the institution is struggling and not bankrupt. I think it has not been declared bankrupt yet. So, it is not in that state yet, but I would say that it is struggling.
I thank you, Mr Speaker.
Ms Mwashingwele (Katuba): Mr Speaker, is the hon. Minister able to confirm that there are no funds because the Ministry of Local Government never actually remitted the money to the Local Authorities Superannuation Fund (LASF) but, on paper, the workers made their contributions?
Mr Mwale: Mr Speaker, that is one of the contributing factors to why there is this situation. However, I would say that the contributions from particular councils were never remitted, but not the Ministry of Local Government. That is one of the reasons why this fund is struggling.
I thank you, Mr Speaker.
NEW NATIONAL REGISTRATION CARDS ISSUANCE
66. Mr Miyutu (Kalabo Central) asked the Minister of Home Affairs:
- when the issuance of new national registration cards will commence; and
- what additional features and biometric data will be incorporated into the new national registration cards.
The Minister of Home Affairs (Mr Kampyongo): Mr Speaker, with your permission, before I just give my response, allow me to register my congratulations to the Chipolopolo Boys for redeeming their chances to qualify for the next Africa Cup of Nations (AFCON) tournament. I also want to encourage our brother, the captain of the side, Mr Mweene, to reflect on the mistake he made and be ready for the game on Saturday this week because such mistakes are common in soccer.
Mr Livune: Question!
Hon. Government Members: Hear, hear!
Mr Kampyongo: Sir, we do not want our boys to disappoint the House that gave the team unanimous support yesterday.
Mr Speaker, the Department of National Registration, Passport and Citizenship has established the Integrated National Registration Information System (INRIS) to improve the storage and retrieval of information of Zambian citizens and residents. This enhanced information system has addressed problems such as identity fraud and different persons sharing the same national registration card (NRC) numbers. The issuance of the new cards from this system will be piloted in 2019.
Mr Speaker, the new NRCs will have additional security features, including biometric data of the card holders, namely the ten fingerprints, and full face. The fingerprints will be stored on a chip embedded on the card. The new NRCs would also be machine-readable. As a result, it will now be possible to identify the card holders with certainty. The new NRCs will, therefore, be more secure and less vulnerable to fraudulent use by unauthorised persons. To avoid situations where citizens share the same NRC numbers, the numbers for the first time applicants will be system and computer generated.
Mr Speaker, I thank you.
Mr Nkombo: Sir, a while ago, when the President of the Republic of Zambia was speaking at a certain function, he suggested that going into the future the national registration card (NRC) must be void of the name of the chief where the holder comes from. I would like to find out from the hon. Minister whether his Government has pursued this thought any further than the President’s pronouncements and if so, what was the motivation of excluding the traditional place of birth in terms of chiefdoms?
Mr Kampyongo: Mr Speaker, first of all, I want to correct the impression which is being created by the hon. Member. As an hon. Member of Parliament, he should know better than everyone else that the President of the Republic of Zambia is the President for all. So, he should not refer to him as my President. He should have said the President of the Republic of Zambia.
Mr Speaker, the comment he is making –
Mr Speaker: Hon. Minister of Home Affairs, maybe, before we make an issue of that, we need to be clear about the record. I am not very sure whether he said, “Your President”, but the record speaks for itself, anyway. I do not want to make a positive determination in the absence of the record. However, you may wish to note that the record may show something otherwise.
Mr Kampyongo: Mr Speaker, that is well-noted.
Mr Speaker, I was with His Excellency the President of the Republic of Zambia, in Rwanda, when we had gone to tour the genocide sites. As he was talking to journalists, one journalist asked him a question as to how this issue of ethnicity could be dealt with in order to avoid a genocide like the one that happened in Rwanda. In response, the President said that we should strive to ensure that people be identified as citizens, who are equal and that it was not important to look at people’s ethnicity. He further he said that if it was possible, maybe, we could look at just identifying people as Zambians without saying a Zambian from tribe A or B. That is what the President said. In that spirit, he said, maybe –
Interruptions
Mr Speaker: Just give me a minute, hon. Minister.
The three hon. Members there, please, why do you not take leave of the House ...
Hon. Opposition Members: Hear, hear!
Mr Speaker: ... for the moment.
Continue, hon. Minister.
Mr Kampyongo: Mr Speaker, in that spirit, the President said that, maybe, as a nation, it is time we considered identifying ourselves as Zambians regardless of one’s ethnic grouping in terms of tribe. So, that is how that matter came about. We are just saying that let us explore ways of ensuring that there is oneness. People should regard themselves to be the same without looking at the tribes which they belong to. We shall reflect on this issue for now. For now, it is not Government policy.
I thank you, Sir.
Ms Mwashingwele: Mr Speaker, with the experience we had in 2015, when the Government was conducting the national registration card registration exercise, it was a very big challenge for people to move to their districts to do the registration. Is the Government considering introducing the mobile registration exercise in 2019 so that we can capture all our youths who need to register across the country?
Mr Kampyongo: Mr Speaker, I wish the hon. Member had posed that question yesterday when I was dealing with the issues to do with mobile registration. The system I am talking about is a new system that the Government is introducing. We are changing the type of NRC from the current one to the new machine-readable card just as we have changed the passport regime. This is a continental agenda.
Sir, as to whether we will embark on a mobile registration exercise, it has been budgeted for, and progressively, we shall see how we can do it in various provinces. We have created a number of new districts. The whole idea of creating new districts was to ensure that services such as the issuance of national documents are brought closer to the people. That is the whole idea. It was done to lessen the mobile issuance of NRCs, especially that we are going digital. The cost implication for this exercise will be different from what it was in the past because this exercise is digital. There will be a mobile registration exercise that will be conducted from next year going forward.
I thank you, Sir.
Mr Kasonso (Solwezi West): Mr Speaker, the hon. Minister has indicated that the new national registration card is going to be an integrated one, meaning that it is going to contain a lot of information. What will be the cost of this card?
Mr Kampyongo: Mr Speaker, if I got the hon. Member of Parliament for Solwezi West correctly, he wanted to find out the cost that the citizens will incur when obtaining a new card. This is a national exercise. Yes, indeed, it is coming at a great cost to the Government, but there will be no cost for the people to exchange their old NRCs to obtain new ones. However, if you exchange your old card for a new card and then lose it, to get another one, there will certainly be a cost just like it is currently, except the cost then will change because the new cards will be of a high quality.
I thank you, Sir.
Mr Miyutu: Mr Speaker, there have been one pilot exercise after another and in 2021, we will have the General Elections. How much time will be taken from the pilot stage of this exercise to the time when we shall have the verified new national registration cards (NRCs)?
Mr Kampyongo: Mr Speaker, this is a very important programme that should not be linked to elections. A lot of work has been done around the process. As I speak, all the records of the NRCs, including that of the hon. Member who might have obtained his card in Kalabo, have been converted to digital formats. So, at the time when the hon. Member will go to change his NRC, all he will need to do is present his old card and then, his file will be retrieved from the computerised system. All he will need to do is add more information to form part of his biometric data on the card before it could be printed.
Sir, all the stakeholders have come on board. The Smart Zambia Institute (SZI) and financial institutions have come on board. These new cards will be machine-readable and, therefore, it will be easier to authenticate them. The cards we have now are outdated because they are in an analogue format. They are typed on old typewriters, printed and then laminated. So, it is very difficult for financial institutions to verify or authenticate them in terms of ownership. They would have to go to retrieve the files physically to authenticate the cards. However, the new cards will be helpful to financial institutions because the chips will be acceptable to their systems. Therefore, they will be able to see, for instance, that yes, indeed, this is Mr Chinga Miyutu, who has these fingerprints, and ...
Hon. Government Members: Hear, hear!
Mr Kampyongo: ... is the owner of this NRC.
Mr Speaker, a lot of work has been done. All stakeholders, including the Electoral Commission of Zambia (ECZ), are on board. There will be nothing like someone who has died being registered to vote because we are enhancing the registration of all events about citizens including births and deaths. However, the issuance of the new NRCs is a very important process, which we are not linking to any electoral cycle. However, we will not state the exact period within which people should change their NRCs because of the growth in our population since 1964. Therefore, we cannot restrict the period in which people should change their old NRCs to the new ones. We shall run with the citizens and hon. Members as the system is being rolled out.
I thank you, Sir.
Mr Michelo (Bweengwa): Mr Speaker, I thank the hon. Minister for his statement.
Mr Livune: Question!
Mr Michelo: Sir, let me begin by saying that what works in other countries cannot easily be applied in this country. The issue in Rwanda is very different from the one here in Zambia. With regard to indicating a person’s tribe and the name of their chief on the National Registration Card (NRC), does the Government have any plans to consult the people of Zambia, the chiefs and the entire country properly so that the people can advise it on how best this matter can be handled?
Mr Speaker: Are you still on Question 66?
Mr Michelo: Yes, Sir.
Mr Kampyongo: Mr Speaker, I also have the same challenge as you. I think my dear hon. Colleague is off tangent. I do not know what his question is. However, if he was trying to make a follow-up on my earlier explanation to the question which was asked by the hon. Member of Parliament for Mazabuka Central Parliamentary Constituency, I would like to state that I am talking about a very important national system here. What the hon. Member is saying is unrelated to this matter.
Mr Speaker, I thank you.
Mr Nanjuwa: Mr Speaker, how much will the implementation of this exercise, which seems to be very costly, cost the nation?
Mr Kampyongo: Mr Speaker, I appreciate the hon. Member’s question. Indeed, this programme is costly. However, it is a must have programme. Like I said, we now live in a global village, where issues to do with civil registration have taken centre stage at the African Union (AU) and Southern African Development Community (SADC) levels. When we talk about civil registration, what we are saying is that there should not be any chance of scandals or invisibility which would lead to a person not being identified and documented until he/she is an adult. These are agendas that we are feeding into as a nation. Yes, the exercise will be costly, and I may not be able to give the actual costs for the entire programme to be rolled out throughout the country, but I will progressively share with the House and the nation at large how much the cost will be as we roll out the programme. We are working with our co-operating partners. The partners have been with us from the time we started implementing this programme. Again, I may not give the exact cost, but I will be able to update this august House and the nation on how much we shall spend on rolling out this programme.
Mr Speaker, I thank you.
Mr Mwiinga (Chikankata): Mr Speaker, I would like to ride on the question asked by the hon. Member of Parliament for Bweengwa. Has the ministry held any consultative fora to find out from the stakeholders whether or not they are happy with this move?
Mr Kampyongo: Mr Speaker, I do not know which move the hon. Member is referring to.
Mr Speaker: Hon. Member for Chikankata, which move are you referring to?
Mr Mwiinga: Mr Speaker, I am referring to the introduction of new national registration cards.
Mr Kampyongo: Mr Speaker, we are running a Government. We have changed passports and drivers’ licences before. This programme is long overdue. Like I said, we are in a global village. Some of these documents will start being recognised internationally. Everything, including the banking and financial systems, is changing. Therefore, the identification of citizens cannot be left behind. With the SZI, we are saying that it is smart solutions all the way just like we are using these gadgets here (pointing at his microphone).
Ms Mulenga: Hear, hear!
Mr Kampyongo: Sir, I do not think we had to consult everybody when changing the microphones and say, now Parliament has to change the way it operates to go digital. To my dear brother, the hon. Member, I wish to state that we are running the Government on behalf of the people. Therefore, what we are doing is in the best interest of the nation and our citizens.
I thank you, Sir.
Prof. Lungwangwa (Nalikwanda): Mr Speaker, I thank the hon. Minister for his statement. However, I want him to tell us that we are living in a digital revolution, the fourth industrial revolution. We are now at a place where the world is digitalised. Thus, an electronic national identification system is important. However, the challenge is the lack of public awareness. Could the hon. Minister just shade some light on the public awareness or public education programmes that the Government has put in place so that people in the remote areas of Nalikwanda know what is happening and also understand the importance of changing their current national registration cards (NRCs) to electronic ones.
Mr Kampyongo: Mr Speaker, I am grateful to the hon. Member of Parliament for Nalikwanda Parliamentary Constituency, Hon. Prof. Lungwangwa, for his question. I agree with him that we are moving with time. What we are doing now is making sure that the infrastructure is set up. The next phase will be sensitisation, which will start from here. All the hon. Members of Parliament will be made to appreciate and understand how the system will be working. That way, the responsibility of disseminating information will not only be left to the Ministry of Home Affairs and the Department of National Registration, Passport and Citizenship. It will be a national programme. I would like to see Prof. Lungwangwa going to sensitise the people in his constituency by telling them about the need to change their NRCs because we are moving with time. The people must be told that the identity cards that they have need to be changed. That way, when people go to vote, they will just present the card and the system will automatically pick their details. All the stakeholders will be brought on board, including the hon. Member. At that point, we can share information with our citizens.
Mr Speaker, I thank you.
Mr Ng’ambi (Chifubu): Mr Speaker, firstly, I want to commend the hon. Minister for using technology to come up with a security document which will also deal with a lot of challenges that have come through based on the basic national registration cards that Zambia is using today. Procedurally, what mechanism has the Government put in place to ensure that this new biometric national security document is a full-proof? How is the Government going to use the old files which are currently manual? What procedures will be put in place before the process goes public?
Mr Kampyongo: Mr Speaker, I appreciate the question and concerns raised by the hon. Member of Parliament for Chifubu Parliamentary Constituency.
Mr Speaker, as I said earlier, all the manual files which we have had since 1964 have now been converted to digital format. So, the procedure has been made easier for people to have their NRCs renewed because all the data has been computerised. Therefore, upon presentation of an old NRC, the information will be retrieved from the records and the processing will then start. If there is additional information which the citizen would want to add in terms of biometric data, it will then be included at that point. These are details like the profession and marital status. After that, the new identity card will then be processed.
Mr Speaker, I also said that there will be no cost implications at any point to the citizens. We will be dealing with a lot of matters at that point. The only people who should be worried are those who have NRCs which are not genuine. At that time, the system will not have the records of those who could have fraudulently acquired their documents. So, all the records starting from 1964 have been captured and stored. The people will get their NRCs through that procedure. We shall make it as simple as possible for the citizens both in rural and urban areas.
I thank you, Sir.
Mr Speaker: Order!
I will take the following last questions: Hon. Member of Parliament for Zambezi West, hon. Member of Parliament for Kabompo, hon. Member of Parliament for Katombola, hon. Member of Parliament for Lukulu East and hon. Member of Parliament for Solwezi Central.
Princess Kucheka (Zambezi West): Mr Speaker, hon. Minister –
Mr Sing’ombe: On a point of order, Sir.
Mr Speaker: A point of order is raised.
Mr Sing’ombe: Mr Speaker, I rise on a point of order against the hon. Minister of Home Affairs. He has been continuously indicating that all files from 1964 to date have been digitalised. Is he aware that in 1964, there were no NRCs and that the first cards were produced in 1966? I seek your serious ruling on this matter.
Hon. Members: Hear, hear!
Mr Speaker: My serious ruling is that you are asking the hon. Minister questions. So, why not just put a question to him?
Interruptions
Mr Speaker: He is not out of order. If you have a question to put to him, ask him. How can he be out of order?
Interruptions
Mr Speaker: Of course, you know where I am ending.
Laughter
Princess Kucheka: Mr Speaker, going digital these days is the right way to go. At the moment, the current national registration card (NRC) has places for gender, date of birth, place of birth and chief, but no place for tribe. In his response, the hon. Minister said that removing the place for the chief will bring oneness. I do not know whether he talked about tribe and oneness. Is the hon. Minister aware that on the current NRC, there is no place for tribe?
Mr Kampyongo: Mr Speaker, when hon. Ministers are giving responses, it is important for hon. Members of Parliament to follow because people out there are listening. At no time did I mention that these NRCs will have no place for tribe or anything of that sort. I was responding to the hon. Member of Parliament for Mazabuka Central who attributed his question to the pronouncements which His Excellency the President made in the Republic of Rwanda. I said that what the President said was not policy. The President just said that it was important that people are not identified by their ethnic groupings. That is all I said. At no point did I say that we were going to change the details that are on the current identity cards. Identity cards which have been computerised have maintained all the details just as they are.
Mr Speaker, I can give my colleague, Hon. Sing’ombe, a bonus answer. When the country became the Republic of Zambia in 1964, there was a transition. There were people who were in Zambia who were from Northern Rhodesia, and so, their records show that there was a transition on how they became Zambians. Therefore, we do not want to lose that information, hence, computerising all the details. When I talked about the process as having begun in 1964, I meant that all the aspects of citizenship have been co-opted. As you know, there have been changes to the Citizenship Act from time to time. Hence, it is not just about the first NRC. I am talking about all the records.
Mr Speaker, I thank you.
Mr Lufuma: Mr Speaker, I know that the digitised National Registration Cards (NRCs) are supposed to make things more efficient be it in the financial sector or political arena in terms of voting. I would like to find out how this digitised NRC will assist in making the elections more efficient so that it only takes a day to announce the results instead of taking days or weeks. How is the new NRC going to help in making the voting system efficient?
Mr Kampyongo: Mr Speaker, this system is very important and will only assist the electoral process in as far as identifying citizens is concerned, and the cleaning up of the records, probably, for the ECZ. As you know, when a registered voter dies, it takes a certain process to get them off the records, but now, all processes in the system will be speaking to each other. If you heard me in the previous responses, I said that all the stakeholders are on board. So, in terms of the stakeholders updating their records and including the new entrants on the system, there will be linkages.
Sir, as I said earlier, we are also enhancing the registration of events for citizens starting from birth. That is why we are now decentralising the issuance of birth certificates which form part of a citizen’s identification. We are now going to all the provincial centres to make sure that our people can access birth certificates. This is part of the requirement of the law so that people are recognised as Zambian citizens. The other aspect which is connected to the electoral process is for the other stakeholders, but will greatly be helped in as far as citizenship identification, the cleaning of records and updating of electoral records is concerned.
I thank you, Sir.
Mr Livune: Mr Speaker, the hon. Minister mentioned that the national registration card (NRC) issuance is being made easier by the creation of new districts, meaning that the facility has been brought as close to the people as possible. However, let us look at vast districts. Is it possible, and if it is, what is the procedure, to get officers within the district to go and assist in the issuing of NRCs in areas which could be 80 km away from the Boma if people are willing to make a contribution for sustaining the officers in that area?
Mr Kampyongo: Mr Speaker, I agree with the hon. Member for Katombola that even though we are creating new districts, there are still people who will be slightly far away from the Government services. However, we are not going to stop the Government exercises regarding the mobile issuance of identity cards. Even as we roll out this programme, there will be a need to reach out to some people because it might be a challenge for them to go and exchange their old cards for a new cards. Therefore, the mobile registration exercise will continue. Since this is a Government programme, I do not see how it would work if the community funded it. We want the Government to continue financing the programme so as to ensure that it remains solely in charge of it.
I thank you, Sir.
Dr Kalila (Lukulu East): Mr Speaker, my question is on the registration of births which I know the hon. Minister made a few remarks about.
Sir, I have seen that we have, at different times, enhanced our citizen identity documents through changes such as those effected on our passports and now, it is changes to our National Registration Cards (NRC). I also see the efforts to improve our birth registration, which is very important and is often given low attention. Are we also thinking of improving the features of the birth certificates to ensure that there is no fraud associated with that important document?
Mr Kampyongo: Mr Speaker, I am sure that the hon. Member is aware that issues to do with civil registration are led by institutions that deal with the issuance of birth certificates and national identity cards. The institutions are assisted by the Ministry of Health. We have always moved together.
Sir, the incoming chair of the Conference of Ministers on Civil Registration, which consists of the ministries responsible for health on board, is trying to create linkages. In relation to birth registration, we have piloted something in Livingstone whereby even births occurring in health facilities are linked through the recording system online such that even before the actual records are taken, the national registration office should have already received information about this new birth. The issuance of birth certificates is already automated. The certificates are already printed with enhanced and unique features which cannot be tempered with because they are embedded in the system. We are sure that the systems are foolproof to ensure that there is no fraud at any given time. There are linkages which have been created.
Mr Speaker, it is the same thing that we are doing with death registration. We depend on the Ministry of Health for verbal autopsies as we are recording deaths that occur in areas that have no health facilities. We are moving together. I believe it is a comprehensive programme which the Government is committed to continue appropriating resources to.
I thank you, Sir.
Mr Mulusa (Solwezi Central): Mr Speaker, as we appreciate the new design of the national registration card, did its design involve our local experts or have we employed foreign experts, as usual?
Mr Kambita: Chinese.
Laughter
Mr Kampyongo: Mr Speaker, there has been a lot of consultation in order for us to improve on the quality of NRCs. That is why I said that we have a multi-sectoral approach. I just explained how much we have been working with the Ministry of Health, for example. There are also other institutions that we are working with. I talked about the SZI being at the centre. We also consulted the ECZ, chiefs and local leadership in various areas. The consultation has been quite inclusive. I wish to assure the hon. Member of Parliament and the nation that this is a national programme. We shall carry hon. Members of Parliament through the programme so that they can understand what we shall be doing at any given stage as we start rolling it out.
I thank you, Sir.
_______
MOTION
BUDGET 2018
(Debate resumed)
Mr Bwalya (Lupososhi): Mr Speaker, thank you for this opportunity to debate, for and on behalf, of the people of Lupososhi Constituency, the Budget presented by the hon. Minister of Finance to this House.
Sir, the hon. Minister of Finance raised quite a number of issues which I feel I need to comment on. There is a saying which goes “United we stand and divided we fall”. That also applies to the economy of this country. If we are united economically, we shall stand, and if we are divided economically, we shall fall economically. Therefore, it is important that as Zambians, we realise that what we say about our country out there, or even within the country, which has a negative connotation will affect the economy negatively.
Mr Speaker, the performance of the kwacha that was alluded to by the hon. Minister of Finance in this House and its depreciation has a lot to do with what we say internationally and locally, especially the negative sentiments. It is, therefore, my appeal as the hon. Member of Parliament for Lupososhi Constituency that we start practicing what I may call economic diplomacy and patriotism so that our economy can grow for the wellbeing of the Zambian people who elected us –
Mr Speaker: Order!
Business was suspended from 1640 hours until 1700 hours.
[MADAM FIRST DEPUTY SPEAKER in the Chair]
Mr Bwalya: Madam Speaker, before business was suspended, I had begun my debate by talking about what the hon. Minister of Finance said in her Budget Speech as regards the depreciation of the kwacha.
Madam Speaker, the performance of the economy is, by and large, dependent on the character of its citizenry. With this said, it is time that all of us in the Republic of Zambia exercised patience and practice or what may be termed as economic patriotism. It is only when one is patriotic that one will be able to have an attractive character.
Madam Speaker, economic fundamentals are very sensitive to what we portray out there. The ground moves very fast depending on how we, as Zambians, portray the nation in the Diaspora. So, I want to urge our colleagues and the people of Zambia, at large, to carry themselves properly so that the economy of this country can do better.
Madam Speaker, you may recall that not too long ago, there was a lot of propaganda by some Zambians, especially from Opposition political parties –
Hon. PF Member: Ba UPND.
Mr Bwalya: … that we, as a country, had sold a number of strategic institutions.
Madam Speaker, I can assure you that such pronouncements actually caused the depreciation of the Kwacha because investors are very sensitive to such kind of sentiments. The sad part is that they are not even true. Investors begin to draw back and hold back their investments.
Madam Speaker, it is very important that people introspect before they utter anything, especially on issues that border on the economy of the Republic of Zambia. After all, we all aspire to lead a country with a progressive economy and, most importantly, the people of Zambia, who aspire to move from the lower income to the middle income level. So, there is no way that we are going to do this if every day that we wake up, we find a lot of propaganda and negative things about our country.
Madam Speaker, on page 3 and paragraph 15 of the Budget Speech, the hon. Minister talked about the increase in the cost of crude oil. Again, I want to state that we need to provide leadership which will be bold enough to tell the people of Zambia that we have very little or no control over the price movement of crude oil on the international market.
Mr Livune: Question!
Mr Bwalya: Madam Speaker, this is because we do not have any oil within the Republic of Zambia. We also do not have access to what I may call a borehole where we can easily get oil. So, we must be very clear in our minds that, in fact, it is important that we brace ourselves for more increments because we have no control on decisions regarding oil prices.
Hon. UPND Member: Subsidies.
Mr Bwalya: It is not right that we should drive this country back to subsidies. We should subsidise production and not consumption.
Hon. PF Members: Hear, hear!
Mr Bwalya: So, every political party that desires to lead this country must know that Zambia has no oil and, therefore, is at the mercy of those that sell it out there.
Madam Speaker, I can speak with a lot of confidence that a peek at the region will show that, in fact, this country delayed to increase the price of fuel because before we increased, other countries like Tanzania already had. If you go to Tanzania, Namibia and Zimbabwe, the increased cost of fuel is the reality on the ground and we, as a country, cannot run away from it because we are in a global village.
Madam Speaker, in fact, the Tanzania-Zambia Mafuta (TAZAMA) Pipeline Limited originates from Tanzania. So, if the country that is more or less at the source of the oil can increase the price of fuel after being affected by the international market, who are we, a landlocked country, not to be affected? So, it is important that we provide leadership by stopping to tell people things that are untrue and things that we cannot do.
Madam Speaker, even if in the unlikely event that a certain political party came into power, it would be very difficult for it to control that price …
Hon. Member: Which political party?
Mr Livune: Question!
Mr Bwalya: … because the country has no control whatsoever on it. So, we need to provide leadership and tell the people of Zambia the truth about the price of oil. The day, the year and the time when we will have our own oil, perhaps, we will be able to have a lot of power. This is not mealie-meal whereby we can order the Food Reserve Agency (FRA) to release some maize grain from the strategic food reserve so that we can control the prices. This is a different thing altogether.
Madam Speaker, none of us on your right side are happy that the price of fuel has gone up. The fact is that we have to be realistic and be within the parameters of what the international market is providing.
Madam Speaker, copper will continue being the number one foreign exchange earner for Zambia for a number of years to come. However, it is important that we have an appropriate policy direction. We know that there are quite a number of minerals within the Republic of Zambia. I want the hon. Minister of Mines and Minerals Development together with his counterpart, the hon. Minister of Finance to understand that there are many other minerals that we do not seem to tap into in terms of the revenue collection for the country. We have concentrated on copper and cobalt, but what about the gold, diamond and other precious stones that we have? Some of them are earning more revenue than even copper. So, it is important that we look at this aspect so that we can be able to broaden the tax base, and get quite a substantial amount through taxes from the other precious minerals that we have.
Madam Speaker, this is the more reason it is also important that we look at the statistics that we have. How credible are our statistics to help us plan effectively for the wellbeing of the Zambian people? I have stated several times on the Floor of the House that the Central Statistical Office (CSO) needs state-of-the-art equipment in order for it to produce quality, timely and effective statistics to facilitate effective planning. It is important to have many institutions that are charged with the responsibility of statistics. Unless and until we begin getting quality statistics, it will be very difficult to plan.
Madam Speaker, this country needs to carry out what I may call a wealth census. That way, the debt sustainability ratio that we are struggling with can easily be pushed up. Immediately we conduct the wealth census, we will be able to realise that we are actually worth more than what we have been displaying in terms of the Gross Domestic Product (GDP) and the debt sustainability ratio. We have natural resources and a God-given comparative advantage because 40 per cent of water resources in the Southern African Development Community (SADC) are within the Republic of Zambia. That should be able to see us generate as much energy as possible. So, if we had to conduct the wealth census, we would then be able to grade ourselves properly, raise our debt sustainability level and borrow even more. However, the reason we are saying that we are in distress in terms of debt is that we have not been able to get proper statistics.
Madam Speaker, tourism, coupled with what I may term the informal sector, which is not captured in the tax net, can actually earn us a lot of money. We can prioritise certain areas. The hon. Minister of Tourism and Arts needs to realise that for a long time, we have depended on the Southern Circuit in terms of tourism. The Northern Circuit has very good potential that has been expounded and propounded upon, and has been documented. The coming up of the Northern Tourism and Investment Expo creates an opportunity for us to address the inequalities that are available in development. We will actually identify the gaps that are there in the tourism sector. The Northern Circuit, and the Northern Province to be specific, has many natural resources that can attract as many tourists as possible and can eventually contribute to the foreign exchange that we need to import oil. We have Lumangwe Falls, Chishimba Falls and Kalambo Falls in the Northern Province and the Kasaba Bay, which has been lying idly for a long time. These sleeping giants need to be awakened so that we can attract as much investment as possible so that we can contribute to the National Treasury. We just need to work on the much-needed roads in the entire country.
Madam Speaker, let me also inform the hon. Minister of Finance that the Northern Province has remained behind primarily because of the road network. It is important that as we implement the 2019 Budget, we open up the rural areas so we can be able to enhance the living standards of the people within Lupososhi Constituency. So, I would like to tell the hon. Minister of Finance and hon. Minister of Housing and Infrastructure Development that the Luwingu/Nsumbu/Chaba/Chilubi Road requires urgent attention so that we can attract the much- needed tourists to see Lake Bangweulu, who can easily connect to Samfya. That way, we will eventually generate the much-needed dollars to enable us to continue surviving. The hon. Minister of Finance and hon. Minister of Housing and Infrastructure Development should ensure that the Mporokoso/Kaputa Road is worked on. The people of the Northern Province feel the 2019 Budget has brought hope and will enable them to drive the nation forward. We praise the Patriotic Front (PF) Government for doing quite a number of things, but there are other things that require attention in order to satisfy the needs of those who voted for us. The Luwingu/Samfya Road is yet another road which is in a bad state. This road passes through Luwingu District, Chifunabuli District and Lupososhi District into Samfya District. The road requires to be worked on.
Madam Speaker, I would like to inform the hon. Minister of Finance that the Budget does not seem to have quantitative figures to show the implication of the various changes and revenue measures that have been taken. Perhaps, as she interacts with us and responds, she should let us know whether certain measures will result in a revenue gain or loss or whether they are revenue neutral or expenditure neutral. After she brings up the relevant pieces of legislation for amendment so that they can be in line with the pronouncements that has been made, we want to know whether or not we will be making a bit of revenue by taking certain measures.
Madam Speaker, we need to address the issue of character. As I conclude, I want to emphasise that we only have one country. Unless we portray ourselves correctly as leaders, it will be difficult for neighbouring or foreign countries, friends and, indeed, those supporting us to support our country. Your character can only be described by what you say, how you carry yourself and how you portray your image. All of us need to portray a good image of this country and as we do so, we must realise that we only have one country called Zambia. So, leave the politics in Zambia. When you are out there, know that you are from Zambia and no-one can change that. We need to understand that fact because posterity will judge us. Posterity will be able to follow you. The record that you were conniving with foreigners to bring about propaganda will still be there. That should not be done in the Republic of Zambia. We must be one. Let us fight on the political platform, but when it comes to the economy, we must be united …
Mr Livune: Question!
Mr Bwalya: … and ensure that we do what is correct.
Madam Speaker, I thank you.
Hon. Government Members: Hear, hear!
Mr Kalobo (Wusakile): Madam Speaker, I thank you for the opportunity to debate the 2019 Budget. Allow me to start by saying that the speech which was presented on 14th September, 2018 by His Excellency the President of the Republic of Zambia, Mr Edgar Chagwa Lungu …
Mr Livune: Question!
Mr Kalobo: … which had set the tone for a shared responsibility in Zambia’s transformation agenda towards the Vision 2030 resonates well with the speech which was presented on 28th September, 2018 …
Mr Michelo: Was hollow.
Mr Kalobo: … by the hon. Minister of Finance, Hon. Margaret Mwanakatwe.
Hon. PF Members: Hear, hear!
Mr Kalobo: Madam Speaker, we have seen that the projected 4 per cent of economic growth is due to the favourable commodity market. Again, we have seen in this Budget that export earnings grew by 20.7 per cent. Presently, our copper is selling at over US6,000 per tonne. Our cobalt is selling at over US80,000 per tonne. The US$3.5 billion export earnings which are being talked about so much have no meaning on the lives of the Zambians people.
Mr Mwiimbu: Hear, hear!
Mr Kalobo: The youths in Wusakile are asking me if there is any advantage for them by the export earnings being at US$3.5 billion.
Mr Machila: Nothing
Mr Kalobo: I told them, it is nothing …
Hon. UPND Members: Hear, hear!
Mr Kalobo: …because it has just landed in the pockets of these multinational companies. The tax evasion, avoidance and transfer pricing are a source of concern in this country. The multinational companies have not made any significant contribution to the revenue of this country.
Mr Nkombo: Hear, hear!
Mr Kalobo: Madam Speaker, our poor workers have continued paying more than what we are collecting from Company Tax and Mineral Royalty Tax which is a very sad development.
Madam Speaker, I have seen in the print media the statement which was issued by the President of the Zambia Chamber of Mines through which he has presented to the Government his ten point plan on how to double production in the mines so that the Government can collect more taxes.
Mr Livune: Whose ten point plan?
Mr Kalobo: Madam Speaker, the President for the Zambia Chamber of Mines went further to state that if we collect high taxes from these mines, Zambia will be a difficult place to invest in. I think, to be patriotic is a key thing for all of us.
Mr Bwalya: Bebe!
Mr Kalobo: Madam Speaker, Zambians should have allegiance to their own country. The President for the Zambia Chamber of Mines seems to be advocating for the multinational companies to pay lower taxes.
Mr Nkombo: On a point of order, Madam Speaker.
Mr Kalobo: Madam Speaker, what is in this Budget Speech is not about increasing production.
Ms Kapata: Ah!
Ikalafye!
Mr Kalobo: What is in the Budget is –
Mr Nkombo: I am sorry, but we cannot talk about a man who is not here to defend himself.
Madam First Deputy Speaker: Hon. Member, please, resume your seat.
Yes, indeed, I would like to guide the hon. Member for Wusakile that you can debate the institution or the comments which have been made through it and not the individuals in it because they are not able to come here to defend themselves.
You may continue with your debate.
Mr Kalobo: Thank you, Madam Speaker, for your guidance. I am very much aware of Standing Order No.53 (1). With me are two newspapers, the Daily Nation of Friday, 5th October, 2018, which is carrying the story on page 4 and the Times of Zambia of the same date which has the story on page 7. I will lay the two newspapers on the Table of the House.
Laughter
Hon. Members: Hear, hear!
Mr Chabi: Jerabo!
Laughter
Mr Kalobo: Madam Speaker, I was saying that what is in the Budget Speech is about collecting the right taxes and not increasing production. If we looked back from the time the multinational companies took over the mines, I think we would notice that there has been growth in the mining sector by over 300 per cent. Production was around 250,000 metric tonnes. This time, production is about 850,000 metric tonnes. There has been significant growth, but the issue is about collecting the right taxes.
Madam Speaker, I am calling on every well-meaning and patriotic Zambians to join this race which has been started by His Excellency the President …
Mr Mecha: Hear, hear!
Mr Kalobo: … to collect the right taxes by this Government. If we collected the right taxes, we will see meaningful youth and women empowerment funding as well as continuous funding for the Constituency Development Fund (CDF). However, if we have Zambians who are advocating for lower taxes for the mining companies, where are we going? What will the future of this country be?
Mr Sichone: Kokolapo apo!
Mr Kalobo: Madam Speaker, there is no journey which has no destiny. Every journey should have a road and destiny. The Vision 2030 being talked about is based on the right taxes from these mines. Increasing taxes in the mining sector will benefit all the Zambians, which includes the vulnerable on the streets and students. This time, we have only students from the Copperbelt University and University of Zambia who are benefiting from the bursaries and loan scheme. We want all the students from the private and public higher learning institutions to benefit from these loans. This can only happen if we collected the right taxes. So, I am calling for patriotism from all corners of the country.
Madam Speaker, let me also contribute to the debate on the reintroduction of Sales Tax. Value Added Tax (VAT) has got more advantages than the Sales Tax.
Mr Nkombo: Hear, hear!
Mr Kalobo: Madam Speaker, if these mines are abusing tax refunds, the best option is to zero rate the minerals so that they do not get the VAT refunds from the cost of their raw materials. With VAT, there are more advantages because more goods and services are taxed. These goods and services are levied at every stage of production and distribution. Again, we have more agents collecting tax on behalf of the Government. So, VAT is better. The world now is moving from Sales Tax to VAT.
Ms Chonya: Dununa reverse!
Mr Kalobo: VAT promotes local manufacturing by reducing the cost of doing business through VAT refunds …
Mr Kambita: Tell them.
Mr Kalobo: … on the cost of their inputs. VAT creates a broader tax base while Sales Tax has a narrow tax base because fewer goods and services are taxed. Most of the suppliers of the goods and services fall outside the Sales Tax gate. Again, in Sales Tax, there is promotion of tax on tax. In short, it is a tax on tax because the inputs and the final products are taxed. So, the proposal from the good people of Wusakile is that we –
Mr Chabi: We go back to VAT.
Mr Kalobo: Madam Speaker, the problem that we have is the mines that are not paying the right taxes. So, we should zero rate the minerals so that they do not get refunds. That way, I think we will achieve what we want as a nation. So, if we have to go for Sales Tax, how are our small and medium enterprises (SMEs) going to grow because they have not been talked about in the Budget Speech? We do not know whether there will be thresholds to enable our SMEs to grow. Since, the hon. Minister of Finance is not in the House, whoever is taking the notes should tell her about this.
Hon. Members: The hon. Minister is in the House.
Laughter
Mr Kalobo: Oh! The Acting Minister of Finance is around. So, the people of Wusakile and Zambia at large want to know how our SMEs are going to grow if we take that route.
Madam Speaker, let me now talk about the restructuring of the Zambia Electricity Corporation Limited (ZESCO). Maybe, allow me to quote what is in the Budget Speech on page 23, paragraph 149, where the hon. Minister said:
“Sir, through the Industrial Development Corporation, Government has been restructuring State-owned enterprises to make them competitive, viable and contribute to national development. In this regard, ZSIC Life Limited has been successfully restructured while Zesco Limited, Zamtel Limited, Zambia Daily Mail and Times of Zambia will be restructured in 2019.”
Madam Speaker, the statement on the State-owned enterprises (SOEs) has led to the people of Wusakile and Zambia at large to start speculating. What does the Government mean by this statement? Is it going to reduce the labour force or dismantle the value chain of transmission, generation and distribution? If it is to reduce the labour force, what model will be used? Is it last in, first out (LIFO), first in, first out (FIFO) or is it voluntary separation? All the three models have disadvantages. If we choose to use LIFO, the biggest number to be affected is the one for the young people, who are the youths.
Mr Chabi: Hear, hear!
Mr Kalobo: Madam Speaker, if we decide to go for the second one, FIFO, the veterans in the company will be affected. So, the disadvantage of FIFO is the losing of the institution’s memory in terms of skill. With the last one, voluntary separation, the company risks losing experienced and skilled employees. The good people of Wusakile are saying that ZESCO is viable.
Madam Speaker, according to this Budget, we have been told that we are now moving from an energy deficient to an energy secure nation. This is a situation, which will see increased productivity and reduced load-shedding. It is a situation whereby we will see the prevention of jobs losses, which may result from the energy deficit. For instance, in 2015, more than 15,000 jobs were lost. This is an indicator that ZESCO is still viable. Therefore, very serious political will needs to be applied when dealing with ZESCO. The solution, therefore, is to revise the power purchase agreements which the Government signed with the independent power producers and the power supply agreements with the bulk consumers, which are the mines. The mines are failing to pay the right taxes. They have also failed to create one million jobs. The money earned by the mines does not fund our development needs. On top of that, the Government is subsidising the operations of the mines. How can we buy power at twelve cents and sell it at six cents to the mines?
Mr Kambita: Hammer!
Mr Kalobo: So, the people of Wusakile want an answer from the Government to when it is going to revise the two agreements.
Mr Kambita: That is right!
Mr Kalobo: Madam Speaker, the people of Wusakile are also aware that the agreement between the Government and the Copperbelt Energy Corporation (CEC) is coming to an end in 2020.
Mr Kambita: Hear, hear!
Mr Kalobo: Madam Speaker, the people of Wusakile are appealing to the Government not to renew its agreement with the CEC because ZESCO can directly transact with the mines. Why should there be a middleman in the transaction?
Madam Speaker, other than that, I would like to commend the Government and ZESCO for the private-public partnerships (PPPs) which it has entered into because they are beneficial. They are helpful because there are options aimed at attracting foreign direct investment (FDI), technology transfer and expertise to revamp the SOEs. Therefore, the propaganda we hear on the social media that ZESCO has been sold is not productive for the country.
Hon. Government: Hear, hear!
Mr Kalobo: Madam Speaker, trying to assume power using propaganda is tantamount to a coup.
Hon. Government Members: Hear, hear!
Mr Kalobo: Madam Speaker, I studied history at senior secondary school. The war in the Balkan states, that include Greece and those which are near France was caused by the misinterpretation of what was called ‘arms race telegram.’
Mr Kambita: Question!
Hon. Government Members: Hear, hear!
Mr Kalobo: Indeed, it is a question of not being objective.
Madam Speaker, people should be concerned about the future of this country. Not being concerned is not Zambian, and is unpatriotic, archaic and also an unproductive way of doing politics.
Madam Speaker, with these few words, I again would like to call upon every patriotic Zambian to join the race to collect the right taxes. The good people of Wusakile support this Budget.
I thank you, Madam Speaker.
Hon. Government Members: Hear, hear!
Mr Kasonso (Solwezi West): Mr Speaker, I would like to thank you for giving me an opportunity to debate the Budget on behalf of the people of Solwezi West and, indeed, the North Western Province.
Madam Speaker, from the outset, I would I like to say that as hon. Member of Parliament for Solwezi West, where Kalumbila Mine and Lumwana Mine are situated, I am not in support of the 2019 Budget.
Hon. UPND Members: Hear, hear!
Mr Kasonso: I will demonstrate to the House why I am not in support of this Budget.
Mr Kalobo laid the paper on the Table.
Hon. Government Members: Hear, hear!
Mr Kasonso: Madam Speaker, first of all, I am not supporting this year’s Budget because for the past three years, our National Budgets have not been benefitting the people of the North- Western Province, in general. In fact, I am of the view that it is high time that our country started looking at its methodology of budgeting. Perhaps, we should have a radical change in the way our Budget is structured so that the bulk of the funds start going to the rural area or provinces because this is where most of the challenges of our people are found. The rural areas are poorer than urban areas. Further, there are more people who reside in rural areas than urban areas. At the moment, the Budget is structured in such a way that ministries which normally focus more on developing urban areas receive more funds. As a result, rural areas will continue to be poorer than urban areas.
Madam Speaker, I am also not supporting next year’s Budget because of the tax policy which the Government is proposing, particularly on mineral royalties. In Ghana, the Mineral Royalty Tax is shared with the communities in which the mining companies operate. Therefore, as the hon. Member of Parliament for Solwezi West, why should I support this Budget when the people around the areas where Lumwana Mine and Kalumbila Mine will not get a share from the Mineral Royalty Tax which the mines will pay this Government? If, at least, even 0.1 per cent was returned to our people in the areas in which the mines operate, I was going to take a different position.
Mr Livune: Hear, hear!
Mr Kasonso: Madam Speaker, the mining industry in this country employs close to 90,000 people. If this tax policy is going to be implemented, it means only one thing. The mines are going to reduce the number of people with jobs. In other words, there will be a reduction in employment. Is that what this Government wants?
Madam Speaker, in 2018, the Value Added Tax (VAT) policy is a tool that has already raised K38.8 billion, taking into account that the total Budget for this year is K71 billion. In other words, the tax collected has already hit more than 50 per cent of the 2018 Budget. Therefore, where is the challenge or problem with VAT?
Madam Speaker, the way I see it, the Government is coming up with this new policy of Sales Tax purely because of the challenge that it has with the mining industries. In any case, the hon. Minister of Finance should be calm when it comes to the mining industry because the mining companies are not our enemies. They are our partners in development. We need to sit down with them, regardless of the challenges that may be prevailing and iron out the differences. The hon. Minister will be able to get a fair position on the mines, rather than approaching issues as if we are at war with the mining companies. Anybody who pays tax in this country is a partner in development with the Government. Therefore, any taxpayer should not be treated as if he/she is an enemy. Not at all.
Hon. Opposition Members: Hear, hear!
Mr Livune: Look at them.
Mr Kasonso: Madam Speaker, the other concern which I have for this country is the failure to diversify our economy. Since Independence, this matter has just been receiving lip service from every Government that has been in power. It is the same case with this Government today regarding next year’s Budget. It is all about tidbits and sound bites. There are no serious measures which are contained in the 2019 Budget to diversify the economy. As I have said, what is there are purely tidbits and sound bites.
Madam Speaker, for instance, our colleagues have talked about the tourism sector. I know that the serious Movement for Multi-party Democracy (MMD) Government identified the Northern Circuit as one of the best tourism products in this country. In other words, I am talking about the Kasaba Bay, which was identified as a new product to add to our existing tourist attractions such as the Victoria Falls, Luangwa National Park and Kafue National Park.
Madam Speaker, the development of the Kasaba Bay area, which was going to be part of the Northern Circuit, would have made it possible for tourists to stay in the country much longer. At the moment, the tourists who come in this country are spending less than half a day and then fly out of Zambia. The Kasaba Bay area is where we have the second deepest lake in the world, after the one which is in Russia. The Northern Circuit also has Nsumbu National Park. Apart from Kasaba Bay, there are three other very good bays, namely the Cape Kachese, Ndole Bay and Nkamba Bay. The MMD Government made sure that the Surveyor-General was on the ground to ensure that the mapping of the whole area was done. The only challenge at that time was a question of power which, again, was addressed through the upgrading of the Lusiwasi Hydro-Power Station. There was also a challenge with the road between Mbala and Nsumbu. Today, our colleagues on your right have ignored the programme of the Northern Circuit which was going to be a catalyst for tourism development in the northern part of our country and, indeed, in Luapula Province.
Madam Speaker, after neglecting Kasaba Bay, the Executive is now talking about building an airport in Ndola on the Copperbelt Province, which basically is not a tourist destination as such. Why does the Government want to spend that kind of money, which is US$350 million, to build this new airport? We should have been putting up infrastructure such as roads in places like Kasaba Bay and developing its surrounding area, which is a very attractive tourism product.
Madam Speaker, this country needs to be serious when it comes to diversifying our economy. In any case, this is why when we have a challenge with the mining industry. The mining companies have a stronger say. All they have to do is tell us that they will reduce the number of mine employees if they do not get their way. This is because we have not diversified the economy. We need to come up with serious measures to face this challenge as a nation.
Mr Livune: Hear, hear!
Mr Kasonso: Madam Speaker, the other item which I want to talk about is the issue of national unity, which is very close to my heart. On page 32, which is the last page, the hon. Minister of Finance when concluding her 2019 Budget Address, said the following in paragraph 200:
“Mr Speaker, as I conclude my Budget Address this afternoon, I wish to echo the theme of His Excellency Mr Edgar Chagwa Lungu, President of the Republic of Zambia’s Address to this august House just two weeks ago. The President’s clarion call was for all Zambians to commit themselves to “Working Together to Achieve Vision 2030”.
Madam Speaker, unity is one of the ingredients for development. If it is missing, there will be no meaningful development in this country. Dr Kenneth Kaunda was President of Zambia for twenty-seven years. Whenever he had a press conference or an opportunity to address the Zambian people, he could speak for three hours. Out of those three hours, perhaps 50 per cent of the address would just be about national unity. This is because Dr Kaunda identified national unity as a very important ingredient for development. All of us here, leaders, need to fix the problem of national unity, but our colleagues on the right carry a higher responsibility in this regard.
Madam Speaker, an hon. Minister cannot continue to say, in my constituency. How can an hon. Minister have a constituency? An hon. Minister’s constituency is Zambia. Immediately you are appointed Minister, your constituency becomes Zambia.
Hon. Opposition Members: Hear, hear!
Mr Kampyongo: Question!
Mr Kasonso: Madam Speaker, there is no ‟questionˮ.
Hon. Ministers are leaders for the whole country. When they allocate development, they should do it in a manner that shows they are looking at improving Zambia, and not just their constituencies. A President should not say that development will only go to the people who will vote for his party. That should not be the case. A President has no constituency. His constituency is Zambia. The way our colleagues on the right are distributing development needs rethinking. We need leadership. They should develop Zambia. Dr Kaunda did not make Chinsali, his birthplace, heaven on earth. Late Dr Chiluba did not make Chipili or the Luapula Province heaven on earth. Late Dr Levy Mwanawasa, SC., did not make Chibombo or Lambaland, where he came from, heaven on earth. These Presidents, may their souls rest in peace, did not do that because they realised that they were Presidents of the whole country, Zambia. I suggest that perhaps, in future, candidates for the Presidency should do a simple exercise of drawing the map of Zambia ...
Mr Mwiimbu: Hear, hear!
Mr Kasonso: ... so that when they become President, they realise that they are for all Zambians.
Madam Speaker, I repeat that the issue of unity is cardinal. Of course, my message also goes to my colleagues on the left. Let us fix this issue of national unity because it is important. It is something that all of us, leaders, must reflect on. The way things are going will not benefit anybody.
Madam Speaker, in conclusion, the policy content in this Budget does not favour the people of the North-Western Province. In any case, the Budget performance, for the past three years, has been between 22 per cent and 30 per cent. This year, if it is going to grow by 20 per cent, we are lucky, as a nation. If the economy is growing at 3.4 per cent, there is no way we are going to reduce poverty in this country. The surest way to reduce poverty is to grow the economy and create more jobs for our people. That is the surest way.
Madam Speaker, the issue of accountability also worries me. Where are the controlling officers? Who are the Permanent Secretaries (PSs)? What are we reading and seeing today? How is it possible that US$4 million, which translates into about K40 million, can be misused or misapplied in a ministry when there is a PS or controlling officer and an hon. Minister? The job of the PS is to monitor how much money is in the ministry everyday. So, how is it possible that a ministry can lose such a colossal sum of money unless there is something wrong with the quality of PSs which the Government has hired? Let us fix that.
Madam Speaker, let us learn how rich people live. The Government is calling certain initiatives austerity measures. Austerity measures means that pain must be felt from those initiatives. Where is the pain when people are still flying first class? All of us here should declare that we shall fly economy class. Perhaps, only the President should be exempted because of security. The rest of us leaders must show the country that they mean business. Looking at the body language of the hon. Minister of Finance, that is not possible, yet she should be the first among equals, who should take the lead. Her body language should be such that the other hon. Ministers know that the country is in distress. From distress, it is possible to be in a crisis and eventually a collapsed economy. So, the hon. Minister of Finance must be serious in addressing all the challenges surrounding the economy.
Madam Speaker, with these few words, I thank you.
Hon. Opposition Members: Hear, hear!
Mr Mecha (Chifunabuli): Madam Speaker, thank you for giving me an opportunity to present the views of the people of Chifunabuli.
Madam Speaker, I was trying to figure out the departure point for the debate, having listened to various hon. Members of Parliament and the views that they have brought forward. As you may be aware, my tradition is not to be repetitive, so I will be quite focused.
Madam Speaker, this country has undergone a lot of development. If we look at the Budget for next year seriously and compare it with the Budget which is being implemented, I think you will notice that there are various similarities. It would only be good that my departure point starts with the review of the performance of the 2018 Budget. The people of Chifunabuli have sent me here on the ticket of the Patriotic Front (PF).
Hon. Government Members: Hear, hear!
Mr Mecha: Madam Speaker, last weekend, I went to Chifunabuli for the Kwanga Traditional Ceremony, which was very successful. The inflow of local tourists was very high. It was unprecedented. You may be wondering why I am giving this kind of introduction. This Government of the PF has awarded district status to Chifunabuli.
Hon. Government Members: Hear, hear!
Mr Mecha: Madam Speaker, those of us who understand the implication of having that kind of status will agree with me that it is the only vehicle to ensure service delivery for the people of Chifunabuli. That is the interest of the people of Chifunabuli. They wanted to see what was in it for them in the 2018 Budget, and whether it will deliver the desired services to Chifunabuli Constituency. I am here to demonstrate whether this patriotic Government is delivering to the expectations of the people of Chifunabuli or not.
Madam Speaker, Her Honour the Vice-President of Zambia was in the constituency not long ago. The President of the Republic of Zambia was also in the constituency not long ago. They had an opportunity to interact with the people of Chifunabuli. They understand the needs of the people of Chifunabuli. They made serious commitments to the people of Chifunabuli. As I was entering the district called Chifunabuli, over the weekend, in the company of a good number of hon. Members of Parliament, I was shocked that for the first time, a tarred road has reached the people of Chifunabuli.
Hon. Government Members: Hear, hear!
Mr Mecha: The works have started. The Government has started tarring the road, and we had an opportunity to step on the first works.
Mr Livune: Question!
Mr Mecha: So, the works of the PF Government are commendable.
Madam Speaker, you may be wondering how I got to Luapula over the weekend. I actually flew there. The PF Government has laid a very good environment for the aviation industry.
Hon. Government Members: Hear, hear!
Mr Mecha: Madam Speaker, planes are now able to fly and land in Mansa. Mahogany Air has actually reintroduced flights to Mansa. Now, I only have to cover a short distance between Mansa and Chifunabuli. This is the beginning of development in the area. When bringing development to an area, the first thing you do is to create a conducive environment. This is what the PF Government is doing. As I was coming back from Chifunabuli, a boat landed there. This is a 120 seater brand new boat which was bought by the Government of the Republic of Zambia to service the people of Chifunabuli District and Samfya District as well as Chilubi Island. We are indebted to the Government.
Hon. Government Members: Hear, hear!
Mr Mecha: Madam Speaker, you cannot compare our boat with the planes we see in Zambia here. It is a sea bus. We will enjoy the comfort of that sea bus.
Hon. Government Members: Hear, hear!
Mr Mecha: Madam Speaker, that is not the only thing we are doing. Last week, I engaged the hon. Minister of Transport and Communication regarding communication towers in specific areas. That was not to say the ministry had not done anything. As I speak, 90 per cent of Chifunabuli District is covered by the communication network. Only 10 per cent is remaining before the entire district is covered. That is the foundation for development that the PF Government has laid down there.
Hon. Government Members: Hear, hear!
Mr Livune: Question!
Mr Mecha: Madam Speaker, this is a Government which planned for the people of Chifunabuli when it was giving us the district status. As I speak, we have money to employ staff under the district council. We currently have twenty-six members of staff deployed to Chifunabuli District. They are all on the payroll and the people of Chifunabuli have started getting the services from the Chifunabuli District Council. What can be better than that? Will I have the moral right to tell the people of Zambia that the PF Government is not delivering in Chifunabuli. My interest is at that micro level. We have talked about the Budget performance at a macro level, but my constituency is at a micro level, and the interest of the people is to see development at that level.
Madam Speaker, Chifunabuli has been benefitting from the agriculture policies which are in place. It was one of the pilot districts for the Electronic (e-Voucher) Voucher System. More than 3,000 people have continued benefitting from the programme. That is not the only thing. This year, we commissioned a dip tank which was actually installed by the Government Republic of Zambia in an effort to diversify the economy of Chifunabuli District. If you go there, you will be shocked to see the number of animals in Chifunabuli. That is not to say we do not need any more support from the Government. We need support. As you may be aware, we have been preaching diversification in Chifunabuli Parliamentary Constituency. This is the more reason we introduced pig farming there. Unfortunately, as it was reported here in Parliament, we lost most of the pigs to the African Swine Fever. Our only prayer is that the Ministry of Fisheries and Livestock will come in to compensate the farmers timely.
Ms Mulenga: Hear, hear! I am coming.
Mr Mecha: Thank you so much.
Madam Speaker, we have already started working on the Improved Rural Road Connectivity Project. I think about two wards are already benefitting from that project. We have started uprooting the trees. All that is needed is a grader to go pass through the area. Then, we will be good to go.
Madam Speaker, these are some of the things that we are doing in Chifunabuli to lay ground for improving the local economy. Not long ago, President Lungu was here to remind us about the Vision 2030 and to outline the trajectory through industrialisation. I know that this Budget has attracted various sentiments from people. There are people who are asking why the hon. Minister of Finance has allocated more money to the economic sectors instead of the education sector. Why should she allocate more money to the economic sector and not the agriculture or health sectors?
Madam Speaker, the process of developing a Budget is a balancing act. There are so many things that we need to look at. We know that some of these services we are getting are as a result of the loans that we are accruing. We have an obligation to pay back the loans as they fall due if we are a responsible Government, and we are doing that. This Budget has sufficiently provided for the redemption of the debts which are due next year.
Hon. Opposition Members: Question!
Mr Mecha: Madam Speaker, the same people will question this Government if it does not redeem its indebtedness. The other balancing act is between the economic and social sectors. President Lungu came to this House and laid down his trajectory via industrialisation. How do we realise that if we do not allocate sufficient funds to the economic sectors? There are various things that we achieve through that allocation to the economic sectors. The first thing we need to do is provide a conducive environment for industrialisation through improving the road infrastructure and, indeed, several other things. That is already happening in Chifunabuli. That is the first thing to do. Without that foundation, you will not realise the desired industrialisation.
Madam Speaker, within that economic sectors is where we have provided for the Food Reserve Agency (FRA) and the Farmer Input Support Programme (FISP) both of which fall under agriculture. What is the reason for allocating a lot of money to these sectors? Our expectation is that industrialisation will draw the inputs from the agriculture sector. Therefore, this sector must be harnessed so that it can capture the inputs. If I talk about the multi-facility economic zone (MFEZ), which the PF has created, the Budget has outlined that so far, US $3.3 billion has gone into industrial packs as well as the MFEZs. That is a lot of money for investment. Already, 15,000 jobs have been created. So, you can see that we are laying the foundation. If you look at the entire structure, you will see that there are incentives like the Local Content Strategy which aims at ensuring the utilisation of local material. The implication is that if you want to ignite the industrialisation process, there must be 35 per cent locally available inputs in the industrial processes. It is through this local content provision that the micro, medium and small-scale enterprises are going to benefit. This points to job creation in these particular areas. There are also other incentives that have been provided for to add value to the different products. The hon. Minister talked about the 15 per cent tax for those who go into the processing of copper cathodes. Is that not an incentive to excite industrialisation, ...
Mrs Simukoko: It is.
Mr Mecha: ... as well as job creation? It is. We know that the small-scale entrepreneurs have been struggling with the management of taxes because they are complicated on the basis of the turnover. There is now an incentive that 4 per cent of the turnover will be the tax. Is this not promoting the local initiatives in this country? You will see that this Budget has various incentives. Of course, there are complications. A colleague of mine talked about Value Added Tax (VAT). I know that the hon. Minister has been very cautious in handling the issue of transitioning from VAT to the Sales Tax. She does ...
Madam First Deputy Speaker: Order!
Business was suspended from 1810 hours until 1830 hours.
[MADAM FIRST DEPUTY SPEAKER in the Chair]
Mr Mecha: Before business was suspended, I was just about to outline the value of the industrialisation approach that the PF Government has taken.
Madam Speaker, those of us who have read the Budget have seen the various commitments that the PF Government has made. The PF Government, founded on the basis of inclusivity and not leaving anyone behind has committed itself to developing the pineapple industry in the North-Western Province. We know the people of the North-Western Province have been growing pineapples which have been going to waste. Thus, the President wants to add value to that. So, this Budget will actually address that aspect.
Madam Speaker, the Eastern Province produces so many fruits which are going to waste. There is a commitment by the PF Government to actually develop the fruit processing facility in the Eastern Province. The same goes for the Western Province where we are developing the cashew nut value chain. Back to Muchinga Province, the palm oil value chain is being developed. There is great commitment by the PF Government to develop that industry.
Madam Speaker, as regards the set-up of the aquaculture industry under the Aquaculture Development Enterprise Project, it will cover a number of provinces, …
Ms Mulenga: Hear, hear!
Mr Mecha: … meaning that very few provinces and, I think, no province will be left behind.
Ms Mulenga: C’mon Mecha!
Mr Mecha: So, all the provinces will be covered.
Madam Speaker, concerning the packaging of the social protection interventions, you will again realise that this Budget covers every province. What can be a better basis for exciting the unity of purpose in a country called Zambia? If not by giving equal opportunities and resources to all the areas and the people of Zambia, which approach should the PF Government take?
Hon. Opposition Members: Question!
Mr Mecha: Madam Speaker, we have no moral right to mislead the people of Zambia because this Government means well. All the interventions that the Government has outlined are non-discriminatory. We must be responsible enough to tell the people of Zambia the truth. I know the way people work differs. Some people prefer to interact with service providers, including the Government departments, in order for them to work better while other people prefer to work in isolation. The people who work in isolation may not have the information for their constituencies. Therefore, even justifying what the PF Government is doing may be difficult for them because they have no basis. They are not on the ground.
Madam Speaker, all the negative sentiments we have been hearing about would not have been there had it been only one thing. This is what the hon. Minister of Finance needs to do expeditiously. We have been waiting for a bill on planning and budgeting. If that Bill was brought to Parliament, hon. Members would be privy to the assumptions and also the contents of the Budget before it is brought to the House, and we would defend it on her behalf. She would only have to say very few words. Hence, I would like to urge the Government to actually bring that Bill because it means well for the people of Zambia. It is also about capacity building because no one will be able to manipulate the hon. Members of Parliament because their capacities would have been built.
Madam Speaker, we know that we have resource constraints in the area of health. We have passed the Health Insurance Act. It is law now. What is remaining is just to develop the regulations. That is all. That is the most effective resource mobilisation instrument which can actually supplement the Budget. It is working well in various countries, and if we can expedite the process of regulation, I think we will achieve a lot in the area of health. I know that the donor commitment in the area of the human immunodeficiency virus and acquired immune deficiency syndrome (HIV/AIDS) programmes is going down. We will need to fill the gap. The only filler we have is the funding from the National Insurance Scheme. Thus its implementation must be expedited.
With those few words, I would like to support the Budget.
I thank you, Madam.
Hon. Government Members: Hear, hear!
Mr Michelo (Bweengwa): Mr Speaker, before I begin to interrogate the Budget for 2019, let me make a brief comment on the recent happenings at the University of Zambia (UNZA). The untimely death of Vespers Shimuzhila is unconditionally regrettable. The illogical operation by the police at UNZA was 100 per cent avoidable if only the Patriotic Front (PF) Government had taken responsibility. I know now that the Zambians are mourning our beloved young lady. The Shimuzhila family, UNZA students and lecturers as well as all the other universities and colleges in this country are mourning. May her soul rest in peace.
Madam Speaker, it is an undisputable fact that the PF Government inherited a growing economy from the Movement for Multi-party Democracy (MMD) Government in 2011. It was on 11th November, 2011, when the hon. Minister of Finance then, Mr Chikwanda presented the first Budget for 2012 on the Floor of this House. In the Budget for 2012, on page 1, paragraph 3, the then hon. Minister of Finance said:
“Mr Speaker, as I begin this Budget Address, I wish to acknowledge the macroeconomic achievements that the country has attained when the economy was under the stewardship of my predecessor, Hon. Dr Situmbeko Musokotwane, MP. I would like to pay tribute to him and the previous administration for laying a strong foundation upon which this Government will build on.”
Madam Speaker, in paragraph 5 he said:
“Sir, in his address to Parliament, His Excellency the President outlined an ambitious programme of action to begin his administration’s vigorous and unrelenting fight against poverty. As we embark on the path to transform our nation, hard work is required and difficult choices will have to be made. But, as a nation, we have collectively chosen this path. With this unity of purpose, we are confident that the challenges before us may be intractable but certainly not insurmountable. It is our duty to ensure that the benefits of our recent economic successes are felt by every Zambian. Thus the theme of the 2012 Budget is “Making Zambia a better place for all”.
Ms Kapata: Enzo belenga muntu?
Mr Michelo: Yes, I was reading. It is a quotation.
Ms Kapata: Oh.
Mr Michelo: Yes.
Laughter
Mr Michelo: Jean the Baptist.
Mr Kambita: Mukula!
Mr Michelo: Madam Speaker, the PF Government set some specific objectives which were:
“... geared towards maintaining a stable macroeconomic environment conducive to investment, inclusive growth and employment creation.”
On the fiscal side, the PF set their target through the hon. Minister of Finance, in paragraph 27, in which he stated as follows:
“Sir, the specific macroeconomic objectives in 2012 will be to:
- achieve real Gross Domestic Product (GDP) growth of above 7.0 per cent;
- attain end-year inflation of no more than 7.0 per cent;
- limit overall fiscal deficit to 4.3 percent of GDP and domestic borrowing to 1.3 per cent of GDP; and
- maintain gross international reserves of, at least, four months of import cover.”
Madam Speaker, that is what the hon. Minister said in 2012. Since 2011, the PF has been stirring this economy. Where has it led us?
Mr Sikazwe interjected.
Mr Michelo: Madam Speaker, from the targeted GDP growth of above 7 per cent in 2012, which was in line with Vision 2030, we are now talking about, at least, 4 per cent in 2019. This is where the PF has brought us. In fact, for us to achieve the Vision 2030 our GDP growth rate should have increased from 7 per cent per annum.
Madam Speaker, for us to reach Vision 2030, we needed to sustain and attain annual real GDP growth of 6 per cent between 2006 and 2010, 8 per cent between 2011 and 2015, 9 per cent between 2016 and 2020, and 10 per cent between 2021 and 2030. I cannot say much on inflation because I think the PF is doing a bit well between 6 and 7 per cent.
Hon. Government Members: Hear, hear!
Mr Kafwaya interjected.
Mr Michelo: Madam Speaker, with regard to the fiscal deficit which, in simple terms, is related to borrowing, our average was 2.7 of GDP between 2005 and 2011.
Mr Kafwaya: On a point of order, Madam Speaker.
Madam First Deputy Speaker: I am not allowing points of order.
Mr Michelo: The deficit was at 2.7 per cent when the PF came into Government and now, is at 7.4 per cent. By 2019, the PF is targeting 6.5 per cent. This is where we are now under the PF Government.
Madam Speaker, the hon. Minister of Finance has even put her picture alongside the picture of the President on the front cover of the Budget booklet, something which we have never seen before in this country. We do not know why she is even opening her mouth. Perhaps, she wants to chew something from our Budget.
Hon. Government Members: Aah!
Laughter
Madam First Deputy Speaker: Order, hon. Member for Bweengwa! You are not debating the hon. Minister of Finance. You are debating the speech that she delivered to this House. Refrain from bringing the person into your debate.
I hope you have noticed that I am sitting on the edge of the Chair because it is likely that I will be interjecting your debate.
Laughter
Madam First Deputy Speaker: Continue, hon. Member and I hope I can sit back.
Laughter
Mr Michelo: Madam Speaker, about 50 per cent of this Budget is going to service debt and salaries. That is all it is going to do.
Mr Mukosa: Question!
Mr Michelo: Madam Speaker, only K9.3 billion is remaining in the Budget presented by Hon. Mwanakatwe. This K9.3 billion is the amount that we are going to discuss for the next two months, but look at how big this country is. There is definitely no money in this Budget.
Madam Speaker, I can only define this Budget as stillborn.
Mr Mung’andu: Question!
Mr Michelo: This is a stillborn Budget. Aka nkoombe kaboola kafwide mbokazyalilwa akambo.
Laughter
Mr Mung’andu: Meaning?
Mr Michelo: Meaning it is stillborn.
Mr Kambita: The whole of the Budget?
Mr Michelo: Yes.
Madam Speaker, the other thing which surprised me was the fees and fines. How can a Minister of Finance with the entire PF Government sit down and start planning to raise money through punishing Zambians? It is not fair to this country.
Mr Mukosa: Question!
Hon. Opposition Members: Hear, hear!
Mr Michelo: They plan to raise K4.2 billion by punishing Zambians.
Madam Speaker, only K4.8 billion is expected to be collected from Mineral Royalty Tax. Since the minerals are ours, the Government is supposed to get more money from them instead of punishing the Zambian people. I am sure that every person who voted for the PF in 2011, 2015 and 2016 is regretting.
Hon. Government Members: Question!
Hon. Opposition Members: Hear, hear!
Mr Michelo: Madam Speaker, there is no way we can be allocated K1.6 million for the Constituency Development Fund (CDF). You know that the CDF is the only money we can use to take development to our rural constituencies. I know that most of the hon. Ministers grew up in town. Mbasi komboni buyo aba. Bakaliakuzylilwa mumakomboni.
Hon. Government Members: Question!
Mr Michelo: It means that they were born in town.
Madam Speaker, the Electronic Voucher (e-Voucher) System has failed completely in Bweengwa Constituency. The then hon. Minister of Agriculture was here on the Floor of this House screaming loudly that the e-Voucher System was going to work properly, but what have we seen as Zambians? It is a total failure.
Madam Speaker, on the issue of taxes, when the PF was campaigning in 2011, it duped the Zambian people that they were going to have more money in their pockets.
Madam First Deputy Speaker: Withdraw the word ‘duped’.
Mr Michelo: Madam Speaker, they mislead the Zambian people that they would have more money in their pockets. What do we have now? Nothing! Look, there is only a handkerchief in my pocket. We have no money completely, but look at those, amubalange. Tuda tukando twakomena tuda akambo kakulya mali esu, these hon. Ministers.
Mr Mung’andu: Question!
Madam First Deputy Speaker: Hon. Member for Bweengwa, I think that after two years, you have enough experience to know what the official language in this House is. You still have seven minutes. You can make very good use of it.
Continue with your debate.
Laughter
Hon. PF Member: Interpret what you said.
Mr Michelo: Madam Speaker, I thank you for your guidance.
Madam Speaker, let me ask the PF Government to remove tax on WhatsApp calls. Let me also ask it to remove the tax on boreholes. It is not buying the water that we have from China. It is not the Chinese who are giving us the water. It is the God of the Heaven who gives us that water. Why is the PF Government charging the people of Zambia tax on that water? It is our water and it is free from heaven. It is God-given.
Madam Speaker, the PF Government also needs to remove the teacher’s licence fee. Why are the teachers being charged that tax? The Road Tax should also be removed because it is not helping the people of Zambia.
Hon. UPND Members: Hear, hear!
Mr Michelo: Madam Speaker, the PF Government needs to reduce the price of fuel to an acceptable level of about K8. At the moment, Zambia has the highest cost of fuel in the region. In fact, it is the highest in the entire Africa. Why? It is because the PF Government has failed. This is an indisputable fact.
Mr Mukosa: Question!
Mr Mung’andu: Question!
Mr Michelo: The PF Government has no capacity to manage the affairs of this economy.
Mr Mung’andu: Question!
Interruptions
Mr Michelo: Madam Speaker, can you protect me?
Mr Mukosa: Question!
Laughter
Madam First Deputy Speaker: Firstly, hon. Member for Bweengwa, you represent the people and for that reason, I try as much as possible to allow you to represent them by allowing you to debate for a full twenty minutes. I am reluctant to curtail your debate for the sake of the people of Bweengwa, but you need to debate –
Mr Michelo turned to address Hon. Mung’andu and Hon. Mukosa.
Madam First Deputy Speaker: Order!
Please, pay attention to what I am saying. You need to debate in a manner that shows respect to not only the other hon. Members, but to this House as well. You cannot refer to other hon. Members of Parliament the way you have just done. I want you to do two things. Firstly, withdraw the statement you just made and, secondly, apologise to them.
Those hon. Members of Parliament, like the hon. Member for Chinsali, after they have been given the apology, should move back to their seats.
Hon. Members: Hear, hear!
Madam First Deputy Speaker: Hon. Member for Bweengwa, withdraw your remarks and apologise.
Mr Michelo: Madam Speaker, I withdraw the remarks and apologise.
Mr Michelo: Can you go now. Go! (Addressing Hon. Mung’andu and Hon. Mukosa)
Laughter
Madam First Deputy Speaker: Hon. Member for Chinsali, please, go back to your seat.
Mr Michelo: Can you go back?
Mr Mukosa resumed his seat.
Laughter
Madam First Deputy Speaker: There is another one, the hon. Member for Chama South.
Laughter
Mr Mung’andu resumed his seat.
Laughter
Madam First Deputy Speaker: The hon. Member for Bweengwa may continue.
Hon. UPND Members: Hammer!
Mr Michelo: Madam Speaker, I thank you and I ask the hon. Members, once again, to forgive me.
Madam Speaker, on the issue of taxes, I am asking the PF Government to introduce Sin Tax on beer because it does not make any sense in this country.
Mr Livune: Hear, hear!
Mr Michelo: Madam Speaker, we do not want to pass this country to the next generation full of people who drink beer every day.
Mr Mukosa: Question!
Hon. UPND Member: Hear, hear!
Mr Michelo: We should try by all means to raise tax so that people can reduce on taking beer. Maybe, that is why the PF Government is failing. Maybe, it is because people take alcohol almost on a daily basis. You know quite well, mama, what beer does when somebody takes it. It goes straight to the brain and develops sores. That is the time when the staggering begins.
Madam First Deputy Speaker: Is that expert advice you are giving us?
Mr Michelo: Yes, Madam Speaker.
Laughter
Madam First Deputy Speaker: Please, debate the Budget.
Mr Michelo: Madam Speaker, my other issue is the non-completion of the works on the Monze/Niko Road. I am very disappointed that the works on this road have not been completed. It is because of the discrimination of the PF Government and its bad leader, President Edgar Chagwa Lungu.
Interruptions
Mr Michelo: Madam Speaker, he is busy taking development to Chifunabuli while ignoring Bweengwa. The road is impassable at the moment. The road from Kafue to Mazabuka and Monze is very bad, but development is just going to one side. I do remember quite well mama that there was a time –
Madam First Deputy Speaker: Order!
The Speaker is not a ‘mama’ in the House.
Laughter
Mr Michelo: I thank you for your guidance, Madam Speaker.
Madam Speaker, I do remember quite well that in 2011 and 2016, there were hon. Members of Parliament here from the northern part of Zambia, who were busy on the Floor of this House jumping and screaming loudly that there was development in their areas. Where are they right now? They are not here. Most of the hon. Members of Parliament from the northern part of the country are new. The others did not come back because the people in their areas got annoyed. They discovered that the hon. Members of Parliament were just misleading them when debating in Parliament because there was no development in their areas as was claimed. So, it is the entire country. These people are not telling the people of Zambia the truth. There is no development.
Hon. UPND Members: Hear, hear!
Mr Michelo: Madam Speaker, the only thing we want to ask of the PF now is that if it has failed, it should resign and give a chance to the United Party for National Development (UPND) and its intelligent leader, HH, so that he can drive this economy forward.
Madam Speaker, at the moment, you can see that people who go to buy merchandise from outside the country are no longer managing because the Kwacha is depreciating on a daily basis. This is because of the poor leadership of the PF.
Madam Speaker, with those few words, I thank you, mama.
Hon. UPND Members: Hear, hear!
Ms Chonya (Kafue): Madam Speaker, I thank you for giving me this opportunity to add my few thoughts to the debate of the 2019 Budget. My thoughts are few because I think that my colleagues that spoke before me, especially from our side, did a tremendous job in terms of exposing the areas where this Budget could actually be improved. They also did a very good analysis of how this Budget ought to be interpreted.
Madam Speaker, my own interpretation in the area of prioritisation is that the Budget has not sufficiently given priority to areas that are really pressing. I agree with one hon. Member who observed that the lumping together or the allocation of a big chunk of funds to this area called ‘Economic Affairs’ did not do justice in informing, for instance, the people of Kafue whether or not within that blurred allocation, there is actually something for the Nitrogen Chemicals of Zambia (NCZ). Under the segment for State-owned enterprises (SOEs), the Budget Speech is completely silent. I was very disappointed because when I looked at the back cover, it gave me hope as it has a picture of the NCZ. I was hoping this Budget would say a lot of things about this only company that we have been crying about in Kafue. So, when we are talking about industralisation, like I have appealed in the past, the step towards industralisation should not be about establishing new companies at the expense of the old ones. After all, the NCZ gives us a very good advantage to quickly boost the job creation figures. The President talked about 300 jobs which have been created by other fertiliser production companies that have come on board and another 200 by the Zambian Fertilisers Limited. These are small numbers compared to the NCZ’s potential where close to 2,000 jobs are at stake.
Madam Speaker, when the hon. Minister of Agriculture was recently responding to a question on the Government’s indebtedness to the NCZ, he informed this House that the Government owes the company K24 billion and that it appropriates K6 million every month to this company. However, what he did not say and what the nation needs to know is that the K6 million that the company receives every month is only meant to meet the basic remuneration costs. The allocation excludes its statutory obligation to the National Pension Scheme Authority (NAPSA) and several other obligations. So, this debt has been building up over the years while the company has been receiving the K6 million allocation every month.
Madam Speaker, although K24 billion seems a bit low, what the hon. Minister of Agriculture did not say was that, in fact, its indebtedness to the NCZ was as high as K900 billion, which was reduced overnight. That reduction did not go towards supporting the NCZ and its production. When the calculations were done, K500 million ended up going to the private investors who are supplying fertiliser on the Zambian market at the expense of the NCZ. This is why I have a gloomy face. I cannot celebrate. I was envying my colleague from Chifunabuli as he talked about the nice things that have been done in his constituency. Indeed, this is very good, but it is a different case with Kafue.
Madam Speaker, apart from the NCZ workers, the workers who undertook the Water Bulk Project have been crying for improved conditions of service and their gratuities. I was not even aware of this and only read about it on social media that the police had given the workers at the NCZ permission to demonstrate over their unpaid gratuities but, of course, this permit was later cancelled. So, this is the situation in Kafue Town. In almost every section or corner of the town, someone is crying about this and that. There is really nothing good to point at or talk about.
Madam Speaker, another group of concerned stakeholders have approached me. These are retired teachers in Kafue District. They worked for their money, which they have not been paid up to now. Even the health workers who were recruited two years ago by the Ministry of Health, and worked for seven months without pay have not been paid their outstanding payments up to this day. Therefore, they were looking for something specific in the Budget Speech that would address how the Government would meet its obligations to the workers.
Madam Speaker, there are various statements of how the Government intends to mobilise its resources to support the Budget. The hon. Member for Kalomo Central debated well. He questioned how the Government hopes to raise funds on the basis of punishing people. What if there were no offences? This is food for thought for our leaders as they think of mobilising resources. I was shocked to read in the Budget Speech because what I thought was an innocent National Titling Programme meant to empower Zambians with land is actually one of the PF Government’s measures to quickly mobilise money in order to meet the various obligations that it has. Much as we may want title deeds, let us be careful of the manner in which we are doing this. In my constituency, there have been some prolific steps whereby some people are trying to demarcate land in order, I suppose, to issue title deeds, but without taking into account the people who have lived on these pieces of land for a long time. So, at the moment, most of the people in the rural community of Kafue are crying. If the people hear that the Government will subject them to what the Government is trying to do to raise money through land titling, it will be difficult for them to support this project.
Madam Speaker, the national debt is a topical issue at the moment and because of this, the Government intends to mobilise external resources. It never admitted in the past that it is in a financial crisis when we tried to engage it on this matter. However, one section of the Budget Speech talks about the measures that the Government has actually taken to try to move our economic situation from a moderate risk situation to a low risk situation. When you are aiming to get to a moderate situation, it means that you are coming from a worse off situation. So, to me, that was a direct admission by the Government that we were or are still in a financial crisis. However, I wish it could acknowledge this fact because, then, it will also be very realistic about the measures it is trying to put in place to address the debt crisis.
Madam Speaker, a few days ago, the hon. Minister of Justice reassured us on the Floor of this House that the Government had not breached any provision of the Constitution by not subjecting all the loans which it has contracted to this House to approve. However, my view is that the spirit and intent of the Constitution must be respected. When the Zambians came up with this recommendation, they were hoping that a responsible Government would quickly put in place measures or even bring a Bill to Parliament to actualise that particular provision of the Constitution. That way, we could have helped the Government to not continue with its borrowing rampage to the extent of putting everybody in a tight corner. Everyone is crying about the stringent measures that the Government is trying to put in place in order to mobilise resources to meet its other obligations.
Madam Speaker, I promised that I will be very brief because this issue of debating the Budget Speech and President Speech appears like an academic exercise.
Hon. UPND Members: Hear, hear!
Ms Chonya: Madam Speaker, it seems we are just here to fulfil a programme or calendar of Parliament because nothing much seems to change despite the many brilliant suggestions that people have been giving to try to improve our situation. People have cried about agriculture in this country and made suggestions which do not seem to be taken up by the Government, yet it acknowledges that agriculture is the largest source of livelihoods which, if supported, could even help us create the jobs that we are talking about.
Madam Speaker, if this Government did very well, we would have no basis for criticising or giving alternative views. Our colleagues seem to be immune to advice, especially from the Opposition, more especially if they suspect that it is coming from the man of goodwill, our president, Hakainde Hichilema.
Hon. UPND Members: Hear, hear!
Ms Chonya: Madam Speaker, before I conclude, I thought I would just make one or two observations on the budget for the education sector. Of course, I support the reintroduction of the Zambia Education Publishing House so that it can help us to produce low cost education materials to support our schools because the situation at the moment is pathetic. Some of the schools have never seen chalk nor teaching and learning materials. If this particular intention was implemented, then we might see a bit of an improvement. However, we also need to implement stringent public financial management systems that will ensure that the funding for the sector trickles down to where it is supposed to go. I can say with confidence that the current scandal which we are talking about of the Social Cash Transfer Scheme is just a tip of the iceberg of what is happening in the different ministries. This scandal has only been exposed because donor money is a bit ‘sensitive’. If people can dare to do that with donor money, then you do not want to imagine what else is happening with the public funds in the ministries which are supposed to help us implement various teachers’ programmes.
Madam Speaker, you can see that in this year’s budget for the education sector, strangely, there is no mention of teacher recruitment. In the past three to four budgets, there has been a mention of the recruitment of 5,000 teachers. This particular Budget is completely silent apart from the mention of the recruitment of 3,500 frontline workers that I see under the Ministry of Health. The Budget talks about the continued upgrading of primary schools into secondary schools, but when I took a look at the Output Based Budget, I saw that it does not even give the expenditure. The expenditure was zero under the upgrading component for last year. So, one wonders how they have been doing it. I am not surprised because I know that my office, for instance, is full of letters from different schools asking for contributions to complete schools which the Government said it wants to upgrade into secondary schools.
Madam Speaker, why would the Government embark on such a programme without putting aside sufficient funds and relying on well wishers and the corporate world within our constituencies for us to be able to support its programme? Yes, corporate social responsibility should be encouraged, but I think the Government itself must begin showing its commitment towards driving its programmes before it can come to us who have not even received the Constituency Development Fund (CDF). If we had received thirty-two mangoes ...
Laughter
Ms Chonya: ... maybe, we would help, but we have not even seen the CDF. Only a section of this House has received the CDF. In the meantime, we as hon. Members of Parliament are under fire out there for the money which we have we have not even seen.
Madam Speaker, let me end by requesting that the hon. Minister of Higher Education comes back to this House to give us a proper ministerial statement on the situation regarding the University of Zambia (UNZA). This is in relation to the education budget because we do not see any allocation on the unbundling of UNZA into various campuses. This is a huge undertaking which the hon. Minister cannot afford to just gloss over and talk about like a by the way thing because this issue came up when we were talking about the death of the UNZA student. The hon. Minister is not in the House, but I hope that this information that she needs to come back to us so that we interrogate this policy direction of dismantling the Great East Road campus so that we know how that distribution of these universities will be conducted can reach her. Maybe, at that point she will tell us now that she is thinking of putting up another campus in the Southern Province. Perhaps, that is where she would like to bundle some of those staunch students so that they do not cause riots in Lusaka. According to the hon. Ministers warped view, for lack of a better term –
Madam First Deputy Speaker: You cannot use −
Ms Chonya: So we −
Madam First Deputy Speaker: Hon. Member for Kafue, you know you cannot use that word.
Ms Chonya: I am trying to look for a – Okay, I drop that word. Madam Speaker, I will replace the words with in the hon. Minister’s own way of thinking.
With those remarks, I thank you, Madam Speaker.
Hon. UPND Members: Hear, hear!
Mr Miyanda (Mapatizya): Madam Speaker, let me start by talking about the lady who passed on at the University of Zambia. If this was your child, niece or daughter, how would you have reacted to such a situation? We have seen on television and elsewhere, what I think we should not have seen. We might have engaged in a lot of politics on this death, but if it was your relative, how were you going to do things?
Madam Speaker, both the President and the hon. Minister of Finance used this one phrase “leaving no one behind”. I think most of us are way behind. I will give you an example of the Link Zambia 8,000 km Road Project. I think as people from the Southern Province, Western Province and North-Western Province, we have not really got much from the Link Zambia 8,000 km Road Project. Meanwhile, people are telling us that they are not leaving anyone behind. They are also saying let us work together and let there be unity.
Madam Speaker, the hon. Member for Chifunabuli said that he got shocked that there is a tarred road in Chifunabuli. Truly, the hon. Member for Chifunabuli should be surprised because to cover the whole Mapatizya, which is a total of 60 km, I need five hours. So, how can one explain that? Although the Government is saying that we should move together in unity, I doubt it if there will be unity under the current arrangement because some people are so proud and keep saying that they have developed their areas and that they have almost everything including roads. Having been to Chifunabuli and Milenge during Committee tours, I am consoled. After what I saw, I cannot believe that someone can stand on the Floor of the House to tell me …
Mr Kampyongo: Question!
Hon. Opposition Members: Hear, hear!
Madam First Deputy Speaker: Order!
Hon. Member for Mapatizya, you have the Budget Speech before you. Focus on it.
Mr Miyanda: Madam Speaker, I would like to thank you for your guidance.
Madam Speaker, I was talking about the Link Zambia 8,000 km Road Project. Under this project, we were told that the Government would work on the stretch of the Bottom Road from Siavonga to Zimba. The late President Mr Michael Chilufya Sata, may his soul rest in peace, came up with this project because he had declared Choma the headquarters of the province. So, they need to work on the Zimba Road so that the tourists who are entering Zambia from Zimba can use the tarred road so that they could either go to Choma or the tourist capital, Livingstone. That dream is not there.
Madam Speaker, people were boasting that they were working on the Bottom Road in the Southern Province yet there is nothing happening.
Interruptions
Mr Miyanda: Yes, they moved a bit, but after …
Hon. Government Members: Aah!
Mr Miyanda: … someone who was working with them left, they also stopped.
Madam Speaker, let me now talk about the issue of electricity. When one is driving to Kapiri Mposhi somewhere near Mulungushi University in Kabwe, he/she would admire the electricity power lines crossing over to export power to other countries while people who live where the source of power is are still living in darkness. The schools and clinics are not yet connected to the National Grid and yet, the Government is busy exporting power to other people. On the other hand, they are saying that we need to work together. So, how can I work with them when I am still spending nights in darkness? My country produces power for other countries. So, why are they saying that we must work together?
Hon. Opposition Members: Hear, hear!
Mr Miyanda: Madam Speaker, let me now talk about the Social Cash Transfer Scheme. The hon. Opposition Members were accused of having clouded minds when they said that something was wrong with the Social Cash Transfer Scheme. People who were referred to as a small group, have now turned out to have been telling the truth. After what happened, the people on your right are now experiencing a storm.
Laughter
Mr Miyanda: With due respect, Madam Speaker, things are not okay on your right. We all feel for the other person who used to be hon. Minister, but has since gone. What has been revealed is exactly what we were saying, which they kept on denying. Instead, they said that hon. Opposition Members have clouds on their minds, which make them not to see things properly. The hon. Members on your right are now experiencing a storm. They are busy firing people from ministry to ministry. So, how many people are going to remain in the Civil Service?
Hon. Livune: Hear, hear! Hammer!
Mr Miyanda: Things are not okay in this country. As for the Cash Social Transfer –
Laughter
Mr Miyanda: Madam Speaker, where I come from, we say that no matter what one does, there comes a time in life when one cannot hide the situation. In Tonga, we say, ‘Ntunji tuzinganyo’. This means that when the sore becomes worse, you will show it to other people …
Laughter
Mr Lubinda: Because you are in trouble!
Mr Miyanda: … because it is painful. They were saying everything was okay when they knew that things were not alright until the sore somewhere started –
Hon. UPND Members: Started showing.
Mr Miyanda: Yes!
Mr Miyanda: Madam Speaker, the other issue I want to talk about is the problem of retirees. Retirees are people who would have spent half of their life time working. Unfortunately, they still go for another ten years without being paid their dues. Most people who retired after 2005 have not received their terminal benefits to date. Unfortunately, some of them, especially the retired teachers are still occupying Government quarters just because they have not been paid their K5,000 repatriation allowance. Someone vibrant is supposed to shift into those houses, but cannot because someone is waiting to be paid his/her repatriation allowance in order to leave. These people are supposed to enjoy their benefits, but unfortunately, they are not even able to send their children who should probably even be in colleges or universities to school.
Madam Speaker, the other issue I want to talk about is the Saudi Arabian goat arrangement.
Madam First Deputy Speaker: Order!
You are now debating in a cross-country kind of manner. You have a Budget before you, hon. Member for Mapatizya. Please, relate your debate to the Budget Speech. You may continue with your debate, but relate it to the Budget Speech.
Mr Miyanda: Madam Speaker, I would like to thank you for your guidance.
Madam Speaker, both the speeches from His Excellency the President and the hon. Minister of Finance brought out issues to do with the market for goats in Saudi Arabia.
Mr Mwiimbu: Yes!
Mr Miyanda: Madam Speaker, although the two speeches brought out this issue, something is still worrying almost everybody. Of late, we have been seeing people who cannot even speak our language come to the Southern Province. They are so smart because they come with people to interpret the language for them. Balefwaya tumbuzi, meaning they want goats. The owners of the goats will not benefit as much as the traders who have come to the province from the transactions. What will happen is that our farmers, who are the owners of the animals, will now become the third party in that business transaction. If anything, the farmers are supposed to be told how these transactions will be carried out. Unfortunately, sooner rather than later, His Excellency the President is going to flag off this Saudi Arabian goat arrangement. The fact is that the people of Mapatizya do not even know where Saudi Arabia is. We also do not know whether the animals will be transported alive or as carcasses. I know that when I speak, some people do not understand what I say.
Madam Speaker, let me now talk about livestock. I am not talking about remnants, but real livestock like cattle. The hon. Minister has proposed that we need to improve cattle breeds through artificial insemination. That can only be done with commercial farmers and not our peasant or small-scale farmers. The best thing to do for small-scale farmers to improve their breeds is to import quality bulls. For artificial insemination, you only have a matter of hours in which a cow can get pregnant. Therefore, on behalf of the people of Mapatizya, I would propose that they find us quality bulls in order to improve the breeds of cattle in this country. One bull can service over fifty cows. This would work well because a bull can service cows whether they are drinking water or wherever they are.
Madam Speaker, I also want to talk about the Food Reserve Agency (FRA). At times, the way the FRA operates worries me. As we speak, the situation is such that the FRA has mopped up all the maize around the country. By mopped up, I mean that the agency has just collected the maize without paying for it. It is like the FRA was just getting maize wherever it could find it. In the last marketing season, trucks would take the maize away immediately after it was weighed. The farmer would not even receive K1 for his/her crop. The maize was just moved elsewhere, but the Government is saying that it has bought maize through the FRA. This is not the case. It is like the maize of our farmers has just been taken by the Government free of charge. This is why I am worried about for our farmers. It is not that we do not have money to pay them. We are just taking advantage of them.
Madam Speaker, my other comments are on the Farmer Input Support Programme (FISP). This is a very good programme, but what worries me is that the same people have been on the scheme since 2010 for some. Eight years down the line, the same people are benefitting from this programme. When you look at the population of farmers in this country, it is close to 2 million. Therefore, the question people are asking is: When are others going to benefit from FISP?
Madam Speaker, let me talk about mining, especially regarding the small-scale miners in the gemstone sub-sector. In Mapatizya, we have amethyst. It is the finest in the world. Unfortunately, our youths and other people have not really benefitted from this resource. Even the Youth Empowerment Fund has not been used to empower the people in Mapatizya through loans and so on and so forth.
Madam Speaker, therefore, my appeal to the Government is to help small-scale miners with, at least, some start-up capital. Most of them are engaged in illegal mining. This will not get them anywhere. As I speak to you, we have one casualty in the University Teaching Hospital (UTH) who was involved in the illegal digging of minerals. This person was injured when the ground collapsed. That is how bad it is.
I thank you, Madam Speaker.
Hon. UPND Members: Hear, hear!
Mr Phiri (Mkaika): Madam Speaker, thank you so much for the opportunity to debate the Motion on the Floor. In the first place, I want to say that I am in support of the 2019 Budget.
Interruptions
Mr Phiri: Madam Speaker, this is the eighth National Budget presented by the Patriotic Front (PF) Government. Therefore, I will highlight issues in relation to the previous Budgets from 2011 to-date. Thereafter, I will go into the 2019 Budget and then conclude my debate. I am a happy person because I see what the PF Government is doing. As part of the people who put the PF in power, this is at least giving me hope.
Hon. PF Members: Hear, hear!
Hon. UPND Members: Question!
Interruptions
Mr Phiri: Madam Speaker, as the Movement for Multi-party Democracy (MMD), I think we are happy with what the PF Government is doing. This has given us hope. As I said, let me highlight what the other seven Budgets were able to achieve in my constituency and country as a whole. First of all, the people in Mkaika Constituency are happy with the communication towers which they have seen the PF Government install.
Hon. PF Members: Hear, hear!
Mr Phiri: Madam Speaker, in the past, the people used to climb hills and trees just to get a phone signal. However, that is now a thing of the past because they are able to communicate with people around the country and beyond from any point in the constituency. For that, the people of Mkaika have sent me to come and deliver …
Mr Mukumbuta: Pa nkoloko.
Mr Phiri: … a thank you message to the PF Government for what it is doing for them.
Hon. PF Members: Hear, hear!
Interruptions
Mr Phiri: Madam Speaker, the second thing I want to talk about is the roads. The people of Mkaika appreciate the tarring of township roads in the constituency. They never had tarred township roads. This time around, we are able to drive up to our homes using the tarred roads, which have been worked on by the PF Government.
Interruptions
Mr Phiri: Madam Speaker, this is what the previous Budgets have achieved from 2011 to-date. I have not come to the 2019 Budget yet, but I will do so.
Madam Speaker, in the education sector, I want to confirm that one secondary school is being constructed in my constituency. This has made the people happy. The construction work is going on as I speak.
Madam Speaker, I am talking about schools. The people in my constituency are happy about the construction of schools. Schools are being constructed. The people are saying that as long as they are seeing development, they will continue supporting the PF.
Madam Speaker, let me now come to hospitals and clinics. Madam, I want to attest here to the fact that out of the 650 health posts which we allocated countrywide, four have been completed in Mkaika Constituency and opened to the general public.
Hon. PF Members: Hear, hear!
Mr Phiri: All this is what the people of Mkaika have seen during the execution of the past seven Budgets which have been produced by the PF Government.
Hon. PF Members: Hear, hear!
Mr Phiri: Madam Speaker, the people of Mkaika would also like to appreciate the PF Government for the dam which was constructed right at the town centre. The people are now able to drink water twenty-four hours a day, seven days a week.
Hon. Government Members: Hear, hear!
Mr Phiri: This is what the previous Budgets have done.
Madam Speaker, while I stand here, I cannot hesitate to congratulate the President on his achievements. He has done well and should continue being focused.
Hon. Government Members: Hear, hear!
Mr Phiri: It is said even in the Bible that people will have eyes, but will not see.
Hon. Government Members: Hear, hear!
Mr Phiri: Madam Speaker, let me now come to the 2019 Budget. I support the approval of this Budget because I am a representative of the people.
Madam Speaker, every day, in your prayer to this House, you have been saying that the people out there have entrusted us with the mandate to support the Executive with the running of the country. Part of our mandate is to support the Budget.
Hon. Government Members: Hear, hear!
Mr Phiri: Madam Speaker, I do not know why some of my colleagues have said that they are not going to support the Budget when this is what will take water to their constituencies so that their people can drink it.
Hon. Government Members: Hear, hear!
Mr Phiri: This is the Budget where money to construct schools in their constituencies will come from.
Hon. Government Members: Hear, hear!
Mr Phiri: So, we need to support this Budget. There is no one from outside who is going to support this Budget. As the MMD here, we are going to support this Budget.
Madam Speaker, I am happy that the hon. Minister of Finance said that she will continue with the Social Cash Transfer Scheme. This money is benefitting us a lot in our constituencies. Our people are now able to eat because of this money. They are able to buy, at least, a bag of mealie-meal at the end of the month when they are given this money. People appreciate this money.
Madam Speaker, the construction of feeder roads is talked about in Pillar III of the Budget. This move is welcome in Mkaika, and Katete District as a whole. Some feeder roads have been done, while others have not. I hope that other roads will be worked on using money from this Budget. There is a need to work on the Msolo Road, Matunga Road and Lupande Road using the 2019 Budget. Enhancing human development includes upgrading schools, and this will be done in 2019. This is a welcome move, and the people in Mkaika are happy about this. As I have already said, one secondary school was given to Mkaika Constituency. The construction is happening now. What I am saying is the truth. I cannot say anything which is not true. Drive from here to Mkaika. You will see that township roads are there. The dam I mentioned is there. The roads are there. The construction of a secondary school is happening now at Kafunga Primary School.
Hon. Government Members: Hear, hear!
Mr Phiri: Madam Speaker, at Kagoro, we have Kapoche Secondary School. There are schools everywhere. The people of Mkaika are also happy with the construction of the university which the Government is about to give us. We are waiting for this project.
Hon. UPND Members: Question!
Interruptions
Mr Phiri: Madam Speaker, am I protected?
Madam First Deputy Speaker: Order, hon. Members behind the hon. Member on the Floor! We need order on both the left and the right.
Interruptions
Madam First Deputy Speaker: Let us have order in the House and allow the hon. Member for the Movement for Multi-party Democracy (MMD) to complete his debate.
Hon. Government Members: Hear, hear!
Hon. UPND Members: Chwe, chwe, chwe, chwe!
Mr Phiri: Madam Speaker, I can see that the people are happy to hear from the former Ruling Party, but want to disrupt my debate. I was saying that people are happy about the construction of a university in Mkaika Parliamentary Constituency. They are just waiting to see the construction of this important institution in the area. This university will benefit many people countrywide. It will also create employment for people within and outside, and so, we welcome this development.
Hon. Government Member: Hear, hear!
Mr Phiri: Madam Speaker, we have St. Francis Mission Hospital in Katete, which is not enough to cater for the people. We need a district hospital. We are, therefore, appealing to the Government to consider giving us a district hospital. A district hospital will help decongest St. Francis Hospital. The population of Katete is not as it was in the past. It has grown, hence the need for us to have a district hospital.
Madam Speaker, the people of Mkaika are happy with the 2019 Budget because of the revised Mineral Royalty Tax. We feel that the mines are not contributing enough to this country’s economy. The adjustments should stand so that we can collect the much-needed revenue from our mines.
Madam Speaker, in conclusion, I want to urge all hon. Members in this House to support our colleagues because they need it.
Hon. Government Members: Hear, hear!
Mr Phiri: Madam Speaker, without our support, our colleagues cannot succeed to deliver.
Madam Speaker, with these few words, I thank you.
Ms Kasanda (Chisamba): Madam Speaker, I would like to start by conveying my heartfelt condolences to the family of the young lady from the University of Zambia who passed on.
Madam Speaker, as I stand here before you today, the voice that shall speak is not mine, but that of the people of Chisamba who voted for me through the ballot.
Madam Speaker, I would like to first talk about the Budget that was presented by the hon. Minister of Finance. The people of Chisamba are saying that they do not agree with the Budget and that it should not be approved.
Hon. Opposition Members: Hear, hear!
Ms Kasanda: Madam Speaker, the people of Chisamba are saying that I have previously participated in approving a Budget which did not benefit them. The people of Chisamba are saying that the Budget that was approved last year did not take any water to Chisamba. There is no clean drinking water in Chisamba. People are still sharing water with animals such as …
Mr Sikazwe: Question iwe!
Ms Kasanda: … dogs. People are still sharing water with pigs. Pigs are able to go to the banks of the river to deliver thereby mixing blood with water which people are drinking today. Therefore, the question the people asked me is: How can you go back and approve a Budget that does not work for the people of Chisamba?
Madam Speaker, we have a problem. The people of Chisamba are also saying look at the girl child. The girl child has to walk long distances. Their mothers walk long distances as well just to go and fetch clean drinking water. At the end of the day, I am supposed to come here and assist the Patriotic Front (PF) Government to approve the Budget which is not going to benefit the people of Chisamba.
Hon. Opposition Members: No!
Ms Kasanda: Our people are dying of cholera and typhoid, yet we are here to talk and talk while nothing is being done.
Madam Speaker, regarding the health sector, health is a prerequisite to the socio-economic development of any country and nation. Therefore, Zambia is not an exception. The PF Government needs to take this into consideration seriously.
Mr Mwamba: On a point of order, Madam.
Madam Speaker: Order! Hon. Member for Chisamba.
Madam First Deputy Speaker: Hon. Member for Lubansenshi, I am on record as having ruled that there will be no points of order.
Hon. Opposition Members: Yes!
Madam First Deputy Speaker: Continue, hon. Member for Chisamba.
Hon. Opposition Members: Hear, hear!
Ms Kasanda: Madam Speaker, I was saying that the PF Government needs to take the need to invest in the health sector into serious consideration.
Madam Speaker, we are not sure if the allocation to the health sector for 2018 will benefit the people of Chisamba. The people are still walking long distances just to access a health facility or centre. We have had mothers delivering by the roadside. Some of them, as they travel the long distances end up delivering in the bush. Once they deliver, the traditional leaders and us are saying that they need to pay a fee for not delivering in a hospital. That is disadvantaging our people, in particular, the women.
Madam Speaker, we have our mothers taking their children for under-five treatment fifty-four years after Independence. All this is happening when the PF is saying that it does not want to leave anyone behind. We feel that we are being left behind. When we ask for development, all you say to us is −
Madam First Deputy Speaker: Order, hon. Member for Chisamba!
Hon. Members: Hear, hear!
(Debate adjourned)
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The House adjourned at 1955 hours until 0900 hours on Friday, 12th October, 2018.
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WRITTEN REPLY TO QUESTIONS
TARRING OF TOWNSHIP ROADS IN KAPUTA
65. Mr Ng’onga (Kaputa) asked the Minister of Local Government:
- when the tarring of township roads in Kaputa District will commence;
- who the contractor for the project is;
- when the contract for the project was signed; and
- what the time frame for the completion of the project is.
The Minister of Local Government (Mr Mwale): Mr Speaker, the Government plans to commence the upgrading of selected township roads to bituminous standard in Kaputa in 2020, subject to availability of funds. There is no contractor as the process to engage the contractor is yet to commence, subject to availability of funds. Owing to the above-mentioned position, there is no contract in place. The time frame shall be determined once the scope of works is known.
I thank you, Mr Speaker.
DEPLOYMENT OF DOCTORS TO KABOMPO DISTRICT HOSPITAL
67. Mr Lufuma (Kabompo) asked the Minister of Health:
- whether the Government has any plans to deploy additional doctors to Kabompo District Hospital to reduce the critical shortage of doctors;
- if so, when the plans will be implemented; and
- how many doctors are earmarked for deployment.
The Minister of Health (Dr Chilufya): Mr Speaker, the Government has plans to deploy additional doctors to Kabompo District Hospital and, indeed, other parts of the country to reduce the critical shortage of doctors. The Government has posted two doctors to Kabompo District Hospital and one doctor has reported. This has brought the total number of doctors currently providing a service to three.
Sir, as stated earlier, two doctors have been posted to Kabompo District Hospital. One has already reported and the other is expected to report before the end of October 2018.
I thank you, Sir.