Wednesday, 16th October, 2019

Wednesday, 16^th October, 2019

The House met at 1430 hours

[MR SECOND DEPUTY SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

_______

ANNOUNCEMENT BY MR SECOND DEPUTY SPEAKER

ZIMBABWEAN PARLIAMENT DELEGATION

Mr Second Deputy Speaker: Hon. Members, I wish to acquaint the House with the presence, in the Speaker’s gallery, of the following hon. Members and staff of the portfolio Committee on Primary and Secondary Education from the Republic of Zimbabwe:

Hon. Priscilla Misihairabwi Mushonga, MP - Chairperson and Leader of the

Delegation

Hon. Nokuthula Matsikenyere, MP

Hon. Ellina Shirichena, MP

Hon. Josia Sithole, MP

Hon. Colleta Mutambisi, MP

Hon. Ophias Murembiwa, MP

Mr Absolom Kunzwa - Committee Clerk

Mrs Elizabeth Hove - Assistant Counsel

Mrs T. Mukurazhizha - Ministry of Finance

Mr Mafovera - Ministry of Primary and Secondary

Education

Mr Rafomoyo - UNICEF Zimbabwe

Mr T. Chinembiri - UNICEF Zimbabwe

I wish, on behalf of the National Assembly of Zambia, to receive our distinguished guests and warmly welcome them in our midst.

I thank you.

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QUESTIONS FOR ORAL ANSWER

KALOMO TOWNSHIP ROADS REHABILITATION

34. Mr Kamboni (Kalomo Central) asked the Minister of Local Government:

when the rehabilitation of township roads in Kalomo District will commence;
how many kilometers are earmarked for rehabilitation; and
what the total cost of the project is.

The Minister of Local Government (Dr Banda): Mr Speaker, the rehabilitation of township roads in Kalomo District will commence once other ongoing projects are completed. The Government is implementing projects in a phased manner, with priority put on projects that are 80 per cent and above completion and those in provincial centres. This is to ensure that all projects are completed.

Sir, 10 km has been earmarked for rehabilitation.

Mr Speaker, the cost will only be known once the contract is signed for procurement.

I thank you, Sir.

Mr Kamboni: Mr Speaker –

Mr Mwiimbu: On a point of order, Sir.

Mr Second Deputy Speaker: A point of order is raised.

Mr Mwiimbu: Mr Speaker, I rise on a very serious constitutional point of order.

Sir, you are aware that before we assume our duties as hon. Members of Parliament, we swear before you to defend the Constitution of the Republic of Zambia and any other laws that are made thereunder.

Mr Speaker, I have noticed with alarm, the propensity on the part of the Patriotic Front (PF) Government to enforce the law in a discriminatory way. What I have noticed is that whenever an issue arises where PF members are involved in breaking the law, the PF Government does not take action against them.

Sir, you may not be aware that part of last week and this week, there has been a very topical issue where members of the United Party for National Development (UPND) threatened to assist the Zambia Police to police bus stations and markets.

Mr Kampyongo: Question!

Mr Mwiimbu: Mr Speaker, instead of responding to ensure that law and order in the markets and bus stations is adhered to, the hon. Minister of Home Affairs, through the Zambia Police, has unleashed police officers, with a view to arrest law abiding citizens who are not happy that there is a breakdown of law and order in the markets.

Hon. UPND Members: Hear, hear!

Interruptions

Mr Mwiimbu: Mr Speaker, as if that is not enough, I am aware that there is a law which was passed by this House pertaining to the management of markets and bus stations. The Patriotic Front (PF) cadres have taken over bus stations and markets with impunity. They are harassing members of the public at bus stations and markets, but the PF Government has not done anything about this matter.

Mr Speaker, today, there are hundreds and hundreds of police officers in town and bus stations in particular, protecting PF cadres who are breaking the law. Instead of the police ensuring that these PF cadres are removed from markets and bus stations, the police are protecting the cadres and assuring them that they must remain in those bus stations. On the Copperbelt, the PF cadres even demonstrated –

Mr Second Deputy Speaker: Order!

Hon. Member, a point of order is being awaited by the Chair.

Mr Mwiimbu: Mr Speaker, I am building my facts. I have to give you facts on why I am raising a point of order.

Mr Speaker, on the Copperbelt, the PF cadres operating from bus stations demonstrated, seeking the protection of the police, but the police have been brought out to protect those who are breaking the law. Taking into account what the hon. Minister of Home Affairs said yesterday, that the Government will not allow any disorder in this country, are the people on the right in order to perpetrate this habit of lawlessness, where the PF cadres are the law in this country? Members of the public have complained about this situation. Are they in order to continue perpetrating lawlessness and supporting lawbreakers just because they are members of the ruling party?

Mr Second Deputy Speaker: Well, in the first place, the hon. Member has debated his point of order. Additionally, it would have been helpful had the hon. Member filed that point of order in form of a question for the hon. Minister of Local Government to respond to. The hon. Minister would have come with a full answer.

My ruling is that the hon. Member should file a question. That will be very helpful because the hon. Minister will bring a more detailed response. Not only that, it will also enable hon. Members to ask more questions on the matter. In this regard, his point of order will be clarified.

May the hon. Member for Kalomo Central, please continue.

Mr Kamboni: Mr Speaker, I have heard that the Government is working on projects that are at 80 per cent completion. From 2016, I have asked this same question three times now. In some towns, this Government has started constructing new township roads, when it has said that it will only concentrate on projects which are at 80 per cent completion. The people of Kalomo District are listening. The roads in Kalomo are in very bad state. There are no proper roads at all, and the previous hon. Minister of Local Government confirmed this. In the 2014/2015 Budget, these township roads were budgeted for and they even appeared in the Budget. What went wrong for these roads not to have been worked up to now?

Dr Banda: Mr Speaker, in 2014, the ministry tendered the works for a 10 km Kalomo urban roads project. However, Treasury authority was not granted due to budgetary constraints. Therefore, the contract was not signed. Due to the passage of time, the works will have to be re-tendered because the cost will definitely be different.

I thank you, Mr Speaker.

Mr Kabanda (Serenje): Mr Speaker, the rehabilitation of township roads in the country started as far back as 2012. I should say, it started immediately the Patriotic Front (PF) Government came into power. Arising from the question by the hon. Member for Kalomo, there are township roads which have not been completed after having been started. What we are seeing is the construction of new roads in certain areas. How do we deal with the roads which have been abandoned as the case is in Serenje Constituency?

Mr Second Deputy Speaker: Order!

Hon. Member, the question on the Floor is on Kalomo Central Constituency. If the hon. Minister has a bonus answer, I will permit him to respond to that question.

Dr Banda: Mr Speaker, I will give a bonus answer to the question raised by the hon. Member for Serenje. The answer is the same as the earlier one. Currently, there are no finances to construct township roads. However, the Government has embarked on the completion of the existing projects which are at 80 per cent completion in provincial centres. After that, whatever money will be available will go to the construction of roads in other districts.

I thank you, Mr Speaker.

Mr Sing’ombe (Dundumwezi): Mr Speaker, in Chitonga, we say, “Nolituba mba nyoko.”

Mr Ngulube: Meaning!

Mr Sing’ombe: This means that no matter how old your mother is, she is your mother, and you need to help her.

Mr Speaker, Kalomo was the first capital city of Northern Rhodesia. Since then, Kalomo has never had proper township roads. For how long will the Patriotic Front (PF) Government look on without constructing township roads in the former capital city of this country?

Dr Banda: Mr Speaker, this Government is very proud of Kalomo for having been the first capital city of this country. It is the Government’s intention to construct township roads in all the districts, be it old or new, including Kalomo. The only handicap it has right now is the lack of finances, and there is nothing it can do without finances. To construct those roads, this Government requires money. Therefore, when money will be available, this Government will certainly be very proud to work on township roads in Kalomo.

I thank you, Mr Speaker.

Ms Kasune (Keembe): Mr Speaker, the hon. Minister has said that funds have to be available for the Government to work on township roads in Kalomo. The concern at hand is that in some townships, roads are not being constructed or they are not even at 80 per cent completion but construction has begun. What is the criterion that Kalomo has to meet before the roads are rehabilitated?

Dr Banda: Mr Speaker, we have not formulated any new criteria, except that we would like to finish the projects which are at 80 per cent completion level. We want to begin with provincial centres before we go into the districts.

Mr Speaker, I thank you.

Mr Lihefu (Manyinga): Mr Speaker, the hon. Minister is saying that construction works can only be done when funds are available. Currently, the Government is –

Mr Miyutu: On a point of order, Sir.

Mr Second Deputy Speaker: A point of order is raised.

Mr Miyutu: Mr Speaker, I thank you for according me this chance time to rise on a very disheartening point of order. This is in view of the welfare of the people of Kalabo. I received a phone call at 1226 hours today, informing me that there is a new price of maize in Kalabo.

Mr Speaker, I remember the hon. Minister of Agriculture giving a ministerial statement in this House concerning the price of maize which is sold by the Food Reserve Agency (FRA) all over this country. The price which the hon. Minister stated was K111 per 50 kg of maize.

Mr Speaker, is the Government, through the Ministry of Agriculture which is responsible for the FRA, in order to cause an application cost of K4.50, on the people of Kalabo in order for them to buy a bag of maize? Is the Government in order to cause this cost deliberately without the hon. Minister informing this House that there is a new cost for acquiring a bag of maize? I seek your serious ruling.

Mr Second Deputy Speaker: Hon. Members, you would be very helpful if you raised some of these points of order in the form of questions. Surely, like the Hon. Mr Speaker has been guiding concerning certain information, it would be very difficult for me to just conclude that the Government is not in order on an issue like this one, which requires an explanation from the hon. Ministers who are in charge.

The hon. Minister of Agriculture would have been the right person to give details had this point of order came as a question in this House. Therefore, the hon. Member is also encouraged to write a question. In fact, because it borders on food, I would ask him to file an urgent question so that the hon. Minister of Agriculture can come to this House and give full information. That is my ruling on this point of order.

May the hon. Member for Manyinga continue, please.

Mr Lihefu: Mr Speaker, I thank you once again. The hon. Minister is saying that the Government does not have money to start new projects in Kaoma. Is he telling the nation that the Government is completely broke that it cannot even rehabilitate the bad roads in Kaoma?

Dr Banda: Mr Speaker, it is actually Kalomo and not Kaoma. The Government is not broke per se. The money that is available is to assist it complete the projects which are at 80 per cent completion level in provincial centres. Thereafter, that same money will be taken to districts as the Government budgets for the subsequent years.

Mr Speaker, I thank you.

Ms Tambatamba (Kasempa): Mr Speaker, Kalomo is a very old town that the Government should care about and ensure that as a historical town, it is kept at a level where it is used for tourism purposes, including local tourism.

Mr Speaker, Kasempa too, which has been waiting for township roads to be upgraded to bituminous standard, is in the same category. There is contractor who was given to do the job, but had to stop the works to wait for funding. My concern is also on the fact that when you tell a contractor to stand-by for years, even beyond the timeline for the completion of the contract, you incur costs.

Is the hon. Minister going to revise the contract or has he already done so, so that the country does not incur penalties from the contractors, until such a time when the Government is able to fund such projects?

Dr Banda: Mr Speaker, naturally, when there is a delay, the costs definitely shifts and the aspect of revision cannot be avoided. However, the answer still remains that there are no funds now to complete all those projects which are below 80 per cent completion level. Our only hope is to move with speed to complete the projects which are at 80 per cent completion in the provincial centres and then move on to the districts.

Mr Speaker, it is the intention of the Government to go to Kalomo. I agree with the hon. Member that Kalomo and Kasempa are historical places which require attention from the Government and it shall receive the attention at an appropriate time.

Mr Speaker, I thank you.

Mr Second Deputy Speaker: The last question will come from the hon. Member for Mazabuka Central.

Mr Nkombo (Mazabuka Central): Mr Speaker, the pronouncements for austerity and termination of all projects that were below 80 per cent completion level were made by His Excellency the President a long time ago. I want to find out from the hon. Minister, and he should look me straight in the eye as he answers …

Interruptions

Mr Nkombo: … which Vote our hon. Colleagues in the Government normally get money from to try and fix roads when there are by-elections. A case in point is Mangango, where they moved equipment and deceived the people by fixing roads. As soon as they won the election, they left and went to Sesheke. They then went to Katuba and fixed the road at Chunga, expressly. Where do they find such money or is it just their way of deceiving the Zambians that they are doing projects that are at 80 percent completion point and above? We heard from some of the hon. Minister’s hon. Colleagues that in certain constituencies, all roads are tarred. A case in point is what I heard the hon. Minister of Higher Education say that in Kankoyo all the roads are tarred.

Dr Banda: Mr Speaker, I want to make it very clear that I did not hear His Excellency the President terminating works when he talked about austerity measures. However, it is the prescribed actions which followed thereafter that made us to terminate or suspend some of the works due to lack of funds. When funds will be available, we are definitely going to continue with those works which have been suspended.

Mr Speaker, there is no Vote to get money from and move equipment to where there are by-elections. I am assuring the hon. Member that whatever equipment he saw and wherever he saw it, it was not a local government programme. I made it very clear to somebody who asked a similar question about Mangango. It was definitely not a programme or a project under the Ministry of Local Government. As a result, I do not know which Vote the hon. Member is talking about.

I thank you, Sir.

Mr Second Deputy Speaker: Order!

The hon. Member for Kalomo Central is the one who asked the question on the Order Paper. Therefore, he is entitled to ask two questions. I will, therefore, allow him to ask a second follow up question.

Mr Kamboni: Mr Speaker, we have heard about the projects which are at 80 per cent completion and they do not seem to be improving or reaching 100 per cent completion. We have had road accidents because the roads are impassable. Should we, the people of Kalomo declare that Patriotic Front (PF) Government has failed and close those roads?

Hon. Government Members: Question!

Dr Banda: Mr Speaker, we have not failed. This is the reason I said that the Government will construct the roads in Kalomo, the moment we are done with the current projects. Kalomo is its priority area.

I thank you, Sir.

UNIVERSITY CONSTRUCTION

35. Mr Munkonge (Lukashya) asked the Minister of Housing and Infrastructure Development:

when the construction of a university in Lukashya Parliamentary Constituency will commence;
what the estimated cost of the project is;
what the time frame for the completion of the project is; and
when the university is expected to be opened to the public.

The Minister of Housing and Infrastructure Development (Mr Mwale): Mr Speaker, the construction of a university in Lukashya Parliamentary Constituency commenced in the year 2018. The estimated cost of the project is US$225 million for the two universities in Lukashya and the Frederick Titus Jacob (FTJ) University in Kasama and Mansa Districts, respectively.

Mr Speaker, the time frame for the completion if the project is thirty months.

The university in Lukashya Parliamentary Constituency is expected to be officially open to the public during the 2021/2022 academic year.

I thank you, Sir.

Mr Munkonge: Mr Speaker, the land is already cleared and this has been referred to as commencing of the project. When will the actual construction begin?

Mr Mwale: Mr Speaker, I cannot give the exact date. However, the site was handed over to the contractor and some financing arrangements that had delayed the project have been sorted out. So construction starts very soon, but indeed the clearing and handing over of land to the contractor is the activities which happened in Lukashya because this project is also in Mansa. There is significant progress with the one in Mansa.

I thank you, Mr Speaker.

Mr Muchima (Ikeleng’i): Mr Speaker, the hon. Minister has said that there were some difficulties with the financing arrangements. I would like to find out who is financing the project. Is it the Zambian Government or has it outsourced some financing from some donor and it is the donor that has these challenges? What are the conditions?

Mr Mwale: Mr Speaker, this is a loan from the Export-Import (EXIM) Bank of China.

I thank you, Sir.

Mr Munkonge: Mr Speaker, would the hon. Minister still stick to thirty months as the period for completion of this project, if we have financial challenges?

Mr Mwale: Mr Speaker, at the moment, I have no reason to doubt that that would be done in thirty months. I think things can still happen as scheduled, even though we have had slight delays.

I thank you, Sir.

Dr Musokotwane (Liuwa): Mr Speaker, it was just a few minutes ago when the hon. Minister said that infrastructure that is not yet at 80 per cent completion would not receive priority in terms of funding. Now, we have heard about a new piece of infrastructure in the name of the university which is at 0 per cent and that we are borrowing money to construct the university. Can he clarify the position as to why a piece of infrastructure that is at 0 per cent status gets funding while there are many others that are more advanced, but are not being funded.

Hon. UPND Members: Hear, hear!

Mr Mwale: Mr Speaker, this is a very good question, indeed. The policy by the Government to first complete infrastructure above 80 per cent completion was only made last year by the President. The financial closure for construction of these two universities was done in the year 2017, long before the introduction of that policy. Secondly, similar questions may arise on some projects that may begin now and there are at 0 per cent or not yet started. Projects that are financed by external co-operating partners are not affected by this 80 per cent completion policy. This involves funds raised by ourselves as a ministry through the Treasury. If we have a co-operating partner who is interested in doing a project with us, we actually engage them and start new projects, if financing is coming from outside the country.

I thank you, Sir.

LUAMPA/MACHILA ROAD TARRING

36. Mr Chikote (Luampa) asked the Minister of Housing and Infrastructure Development:

whether the Government has any plans to tar the Luampa/Machile Road in Luampa Parliamentary Constituency;
if so, when the plans will be implemented;
whether the Government has any plans to rehabilitate the following roads in the constituency:

Lui/Mulwa; and

Nkengo/Mayukwayukwa; and

d. if so, when the plans will be implemented.

Mr Mwale: Mr Speaker, the Government has no immediate plans to upgrade to bituminous standard Luampa/Machile Road in Luampa Parliamentary Constituency due to financial constraints. The upgrading of the road to bituminous standard will be considered in future work plans subject to the availability of funds.

Mr Speaker, the plans will be considered in the future road sector work plans subject to availability of funds. In the interim, the Government will endevour to keep the road in a motorable state.

Sir, the Government has no immediate plans to rehabilitate Lui/Mulwa Road. However, plans are there to rehabilitate the Nkengo/Mayukwayukwa Road under the Improved Rural Connectivity Project. The procurement process of engaging a contractor is currently ongoing and it is expected that the contractor will be engaged by the end of the fourth quarter of 2019.

Mr Speaker, rehabilitation of Nkengo/Mayukwayukwa Road is expected to commence in the fourth quarter of 2019, after engagement of a contractor. On the other hand, works on Lui/Mulwa Road will be considered in future road sector work plans subject to the availability of funds.

I thank you, Mr Speaker.

Mr Chikote: Mr Speaker, this PF Government has been in office for eight years now and they are almost winding up.

Hon. UPND Members: Hear, hear!

Hon. PF Members: Question!

Mr Chikote: Now, most of the responses which we are getting are that the Government does not have money to construct roads. This road is very important and during the reign of Dr Kaunda, it was being serviced to help the people who live along that road, like those of Nyambi and Inkunikila. When is the Government going to have money to assist the people who live along that road?

Mr Mwale: Mr Speaker, let me start by saying that the hon. Member expresses his opinion by saying we are winding up as PF Government. Zambians have a different opinion all together.

Hon. PF Members: Hear, hear!

Mr Mwale: Mr Speaker, we have committed ourselves to rehabilitate this road. All we are saying is that we do not have the money at the moment. Just like many other roads, we have rehabilitated or constructed in this country, once we have funds, we are going to work on this road. I think that reference to the United Nation Independence Party (UNIP) Government having rehabilitated this road, which is a long time ago, is misplaced. This PF Government has constructed a lot more roads than UNIP did in the entire twenty-seven years it was in power.

Mr Muchima: Ah!

Hon. UPND Members: Hmmm!

Mr Mwale: This is a fact.

Hon. Opposition Members: Question!

Interruptions

Mr Second Deputy Speaker: Order, hon. Members.

Hon. PF Members: Hear, hear!

Hon. UPND Members: No!

Mr Mwale: This is a fact. I will repeat and say that the PF has constructed more roads the time it has been in power than the entire twenty-seven years of the UNIP Government. This is the fact.

Hon. PF Members: Hear, hear!

Mr Mwale: Mr Speaker, the likelihood that this road will be rehabilitated is high under this Government. We just need to organise ourselves and put money together and we will work on this road. We love the people of the North-Western Province and this road will be worked on.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Ndalamei (Sikongo): Mr Speaker, the hon. Minister is saying that they have worked on a lot of roads. In the Link Zambia 8000 Road Project, which roads did the Government work on in the Western Province? Let him tell me.

Hon. UPND Members: Yes!

Mr Mwale: Mr Speaker, I do not need to go far even to the time of my predecessors. Two weeks ago, the Ministry of Housing and Infrastructure Development released K20 million to start works on the Mongu/Limulunga Road. Seven days ago, the contractor mobilised and as I am talking to you now, the road is being worked on. This is a new road which is being worked on. I am talking about the time that I have occupied the office. I will not go as far back as when other people have been in this office.

I thank you, Mr Speaker.

Hon. PF Members: Hear, hear!

Mr Muchima: Mr Speaker, the hon. Minister is contradicting himself. He said only those roads that are funded externally will have works commence if they are at 0 per cent. Now, he is trying to appease the people of Luampa that he is looking for a contractor and very soon he will commence works on that Luampa/Machile Road yet he said he can only continue with those projects that are at 80 per cent or above. Is he telling me that he has sourced for money internationally to work on the roads in Luampa?

Mr Mwale: Mr Speaker, I did not say that the Government is looking for money and that very soon it will start working on this road but that it does not have money for this road. I also said that once the money is made available, it will be able to attend to this project. I further said that for now, the Government will make sure that the road is motorable by ensuring that it does some rehabilitation here and there but it will not work on the road. This is the response that I gave. It will stick to its plan of dealing with projects that are above 80 per cent completion first, and then go down to 60 per cent and 40 per cent until to the level where it can contract new projects. However, with externally financed projects, it will start Greenfield projects. It has no problem with that. Therefore, the Government will stick to its policy statement.

I thank you, Mr Speaker.

Dr Musokotwane (Liuwa): Mr Speaker, I think we are getting confused because a few moments ago, we were told that only projects which 80 per cent completion and above will continue. Then when we gave examples, to the contrary, the statement changed to say if a project is funded from outside the country then that limitation of 80 per cent and above falls away. Earlier on, when the hon. Minister of Finance was presenting his Budget Speech, he maintained that projects that are at 80 per cent completion and above will be funded. Those projects which are not at 80 per cent completion and above will not be funded because of the overall budget limitations. Can we get a final and conclusive statement about the projects that are funded from loans because we are now totally confused.

Mr Mwale: Mr Speaker, the Government has remained consistent. I said that projects above 80 per cent completion will be given first priority and will be considered before other projects. It has also remained consistent that it can start new projects if they are financed by external partners. I think I have made this clear. Almost on a daily basis, the Government is ground breaking projects that are financed externally. However, with the money that the Government raises, the projects that are above 80 per cent completion will be given first priority, and then it will begin to come down in that order. It is very consistent on that and it will not change its position.

I thank you, Sir

Mr Livune (Katombola): Mr Speaker, the Luampa/Machile Road is commonly referred to as the Simungoma Road by many people who are listening and those interested in this road. This is an extremely important road. You are talking of connecting Luampa, Mulobezi, Mwandi, and Sesheke and Kazungula. I am not too sure if this Government regards this road to be very important. I am asking this question because here in Lusaka, the Government is making tarred roads up to people’s yards. In all the compounds it is tarring the roads just like it is doing on the Copperbelt meanwhile the poor people of Mulobezi, Sesheke and Luampa have to pay for these loans at the end of the day. Is the Government serious when it tells us to wait until money is found?

Mr Speaker, is the hon. Minister able to give us a list of those roads that are above 80 per cent completion so that we can surely know which roads are being talked about. I seek the intervention of Mr Speaker.

Mr Mwale: Mr Speaker, I think that was more of a statement. However, let me start by dealing with the statement itself. It is not true that the Government is borrowing or paying for the improvement of roads for people of Lusaka and the Copperbelt whilst living out people in rural areas. The Government just acquired a US$300 million from the World Bank for the rural connectivity project. Furthermore, I said that one of the roads that will be worked on is Nkengo/Mayukwayukwa Road, under the rural connectivity project. It borrowed US$300 million from the World Bank to deal with rural areas. It is not true that the Government is not attending to people in rural areas. My predecessor had announced that it will deal with about 5000 km of gravel roads in the rural areas, and that they will be done by Chinese contractors who have already been contracted and they are about to commence the construction works.

Mr Speaker, the ground breaking has already been done. In fact we have secured about 2000 km already which is going to be worked on in the rural areas. This Government cares for people in the rural areas, because these are the people who feed this nation.

Hon Livune: Question!

Mr Mwale: We are opening up rural areas. I do not think there is a Government that has opened up rural areas more than the PF Government in that...

Hon: UPND Members: Question!

Mr Mwale: ...it has created new districts to make sure that people in rural areas are empowered and have access to services.

Mr Kambita: Question!

Mr Mwale: We take turned rural areas into towns. This is a reality, and Zambians can see for themselves what I am talking about. It is not true that we are building roads in Lusaka and leaving out rural areas. People in rural areas are getting a fair share of development.

Hon. UPND: Member: Question!

Mr Mwale: Mr Speaker that is the response I can give to that question.

I thank you, Sir.

Hon. PF Members: Hear, hear!

Mr Second Deputy Speaker: Order!

Hon Members, let us give an opportunity to the hon. Minister and allow him to answer the questions without interruptions.

Mr Mandumbwa (Mulobezi): Mr Speaker, it is good that even Her Honour the Vice-President is in the House today ...

Hon. Members: Hear, hear!

Mr Mandumbwa: ... because she says that I only ask questions on Fridays.

Laughter

Mr Mandumbwa: I do ask questions when I find it necessary.

Hon Members: Hear, hear!

Mr Chabi: Fourteen years!

Mr Mandumbwa: Mr Speaker, I will not call this road old, but ancient, for the reason that it was there before most of us in here came into being. The Luampa/Machile Road was used by our forefathers even before independence. It was an important road for the people of the Western Province.

Mr Chabi: Uleumfwa Slang!

Mr Mandumbwa: It is quite surprising to note that new roads are being constructed, leaving out this ancient road which our forefathers used when they were fighting for independence for this country. The people of Nyambi and the Kaywala are completely cut-off. What immediate plans does the Government has to help those people so that they can be mobile too?

Hon. Members: Hear, hear!

Mr Mwale: Mr Speaker it is very clear that this road is very important. And I think that this Government will not downplay that. We believe that roads in this country are important. Moreover, they deserve the attention that other roads receive. We have committed ourselves as Government to work on this road as long as we manage to raise money. Remember that we have a commitment to finish the projects which are above 80 per cent completion and that we have opened up so many projects which we have to deal with. However, we reiterate that in the meantime, we will try and make this road motorable. This is the commitment that we have made as a Government, owing to the facts that have been stated by the hon. Member of Parliament for Mulobezi. We understand the importance of this road. We will do our very best to find money for the road, but in the meantime, we will make the road motorable.

I thank you, Mr Speaker.

Mr Nanjuwa (Mumbwa): Mr Speaker, the hon. Minister mentioned that the procurement of Nkengo/Mayukwayukwa road will be completed by the fourth quarter of 2019. May I know the budgeted amount of on this road?

Mr Mwale: Mr Speaker I need to provide that extra information later on, but I am very sure that the works will commence before the end of 2019.

I thank you Mr Speaker.

Mr Mubika (Shangombo): Mr Speaker, the Luampa/Machile Road is the shortcut road for traffic which is coming from the Copperbelt Province via North-Western Province to Walvis Bay. Why is Government not considering advertising this road so that we can go the Public Private Partnership (PPP) way, and install toll gates? Unlike the Government spending more money, the private sector can come on board to tar that road so that it can be a shortcut to Walvis Bay.

Mr Mwale: Mr Speaker, the Government is not averse to that proposal. It can actually engage PPP. I must say that people interested in working on roads with Government on a PPP arrangement are actually on the lookout right now. Most of them are making proposals to Government considering the roads which are viable. We have seen different proposals coming to our tables and I wonder why this is not one of those that people are earmarking. However, we will do a bit more advertising and see if people can get interested on working on this road on a PPP basis. That is a good idea.

I thank you, Mr Speaker.

Ms Kasune (Kembe): Mr Speaker, given that this road connects Luampa, Mulobezi, Sesheke and indeed Kazungula, has the ministry classified it as an economical road? That is because this road may help to source for funds.

Mr Mwale: Mr Speaker, I can confirm that indeed, this is an economic road and we know that for sure.

I thank you, Mr Speaker.

Mr Chikote (Luampa): Mr Speaker, the Patriotic Front (PF) Government has said that it will not leave anybody behind. As I am speaking, I have teachers in Inkunikila, Nyambi and Mwangalesha along the same road, including nurses. When these people go to get their salaries, they go for two to three weeks. They leave pupils unattended to; the reason being that the road is poor. They walk all the way from their respective schools to Kaoma. Therefore, what immediate measures is the PF Government putting in place to assist the pupils who are suffering in these wards as we wait for the road to be tarred?

Mr Mwale: Mr Speaker I will ask the Member of Parliament to bear the good news to the people of Luampa including the teachers and nurses that the Government cares for them and that they will not be left behind. The only time they would see help on that road, is from this Government because it is the only Government which is capable of delivering. Before the whole road is overhauled, it will soon make it at least, motorable. We have made this commitment as a Government.

MSANZALA SCHOOLS REHABILITATION

37. Mr S. Banda (Kasenengwa) (on behalf of Mr Daka (Msanzala)) asked the Minister of General Education:

when the rehabilitation of the following Schools in Msanzala Parliamentary Constituency will commence:

Matonga;

Mwambula; and

Mwanika;

b. what the timeframe for the completion of each project is; and

c. what has caused the delay in commencing the project.

The Minister of Information and Broadcasting (Ms Siliya) (on behalf of the Minister of General Education (Mr Mabumba)): Mr Speaker, the ministry is aware of the need to rehabilitate Matonga, Mwambula and Mwanika schools in Msanzala Parliamentary Constituency and other primary schools around the country that are in a deplorable state.

Sir, the cause of the delay in commencing the works is as a result of non-availability of funds at the moment.

I thank you, Mr Speaker.

SESHEKE DISTRICT NURSING SCHOOL CONSTRUCTION

38. Dr Imakando (Mongu Central) (on behalf of Mr Kangombe (Sesheke)) asked the Minister of Health:

when the construction of Yeta School of Nursing in Sesheke District will commence;
what the estimated cost of the project is; and
what the timeframe for the completion of the project is.

The Minister of Health (Dr Chilufya): Mr Speaker, Yeta School of Nursing has commenced operations using the existing infrastructure and already has in excess of 120 students. The expansion of the school will commence in 2020.

Sir, the estimated cost of the project will be determined after the framework of the expansion is concluded. Further, we expect to take two years to complete the expansion project.

I thank you, Mr Speaker

Dr Imakando: Mr Speaker, can the hon. Minister please confirm that there will be a provision for this nursing school in the 2020 Budget.

Dr Chilufya: Mr Speaker, the Budget provision exists under refurbishment. Like I said, the context in which the question is asked almost suggests that the school does not exist, but it does and there is an existing infrastructure. Therefore, the aspect of adding an extra classroom block and laboratory is what is included under the refurbishment budget for next year.

Mr Speaker, I thank you.

_______

BILL

THIRD READING

The following Bill was read the third time and passed:

The Zambia Medicines and Medical Supplies Agency Bill, 2019

_______

MOTIONS

BUDGET 2020

(Debate resumed)

Mr Simfukwe (Mbala): Mr Speaker, in accordance with its terms of reference, as provided for in the Standing Orders, your Committee was tasked to scrutinise the Estimates of Revenue and Expenditure for the Financial Year 1^st January to 31^st December, 2020.

Sir, despite the very limited time available for the Committee to undertake this important task, it was able to accommodate stakeholders from various interest groups in society, including academia, research institutions, civil society organisations, the children’s Parliament and the hon. Minister of Finance.

Sir, in its quest to have an appreciation of the implications of the Budget on the performance of key sectors in the economy, the Committee undertook a brief review of the budgetary allocations for twelve selected line ministries.

Mr Speaker, the interaction by the Committee with the selected ministries validates the argument that there is urgent need for the Budget to be analysed by relevant Parliamentary portfolio Committees, in order to enhance the role of Parliament in the Budget approval process. It is the expectation of the Committee that the ongoing review of the Standing Orders will culminate in the introduction of sector Budget analysis by portfolio Committees in our Budget approval process.

Sir, allow me now to highlight some of the key concerns which stakeholders highlighted to the Committee during the interaction. One concern that was repeatedly raised by the stakeholders was the current debt position, which stood at US$10.23 billion for external debt and K60.7 billion for domestic debts, while accumulated domestic arrears stood at K20.2 billion, excluding outstanding Value Added Tax (VAT) refunds.

Mr Speaker, stakeholders expressed serious concern that the debt obligations for 2020 were even higher than the total allocation for education, agriculture, health, tourism, manufacturing and mining sectors combined, by far. Further, it was stated that in 2020, the projected debt servicing would stand at 50 per cent of domestic revenue.

Stakeholders expressed fear that the debt position may result in more borrowing to finance other budgeted activities, which would effectively worsen the debt burden. In addition, stakeholders noted that while the Government had outlined proposed measures on debt management, which included slowing down external debt contraction, postponement or cancellation of some pipeline loans, ceasing the issuance of guarantees and refinancing of existing loans, there are no specific details on how the set targets will be achieved. However, they were optimistic that the 2020 to 2022 medium term debt strategy would highlight the specific measureable targets for the set objectives, especially the exchange rate, which if left unchecked, may have a huge impact on external debt.

Mr Speaker, stakeholders also expressed concern that the Government failed to secure the International Monetary Fund (IMF) economic stabilisation and growth programme. They contended that given the country’s debt stock, which constitutes about 40 per cent of the total National Budget, a comprehensive programme is required to facilitate the framework for possible support by the donors and enhance Foreign Direct Investment (FDI), especially that many of the African Eurobond issuers have a programme with the IMF. They submitted that the IMF remains key in addressing the current debt burden. In this regard, the Committee recommends that this House urges the Government to ensure that the IMF is engaged to facilitate an economic recovery programme. The engagement should materialise before the end of the 2019 financial year so as to stimulate economic recovery and stability.

Sir, one key microeconomic indicator that worries most stakeholders is the continued decline of the international reserves, which now stand at 1.7 months of import cover. This has been mainly attributed to the high external debt service payments and exacerbated by rising inflation. Given the failure to achieve the set 2019 target of raising international reserves to at least three months of import cover, stakeholders wondered how the new set target of 2.5 months, which would require an additional US$700 million to the current import cover will be achieved in 2020, given that debt servicing obligations will continue. In this regard, the Committee urges the Government to take robust measures to meet the target of raising international reserves to 2.5 months of import cover by promoting export diversification to significantly increase and maintain international reserves within the set target. Additionally, the measures on debt management should be implemented as promulgated in the 2020 Budget Address. In the short-term, engagement with the IMF will also help attract foreign investment and ultimately contribute to the enhancement of the international resources.

Sir, another matter that the stakeholders raised was the unexplained delay in taking measures aimed at strengthening the role of Parliament in the Budget process through the enactment of planning and budgeting legislation. Stakeholders were displeased that whereas assurances have been given on the tabling of this piece of legislation, the picture does not look promising as the end of the 2019 financial year is fast approaching without any plans to table the Bill. Further, no mention was made by the hon. Minister of this important piece of legislation in the 2020 Budget Address. Other pieces of legislation that were identified as being instrumental in strengthening public financial management with specific focus on debt management, include the Public Procurement Act No. 12 of 2008 and the Loans and Guarantees (Authorisation) Act Chapter 366 of the Laws of Zambia. Stakeholders wondered why the Government had delayed the harmonisation of these pieces of legislation with Article 205 of the Republican Constitution as amended. In view of this, the Committee recommends that the Government should present these pieces of legislation during the current Budget meeting of the House without any further delay.

Mr Speaker, let me draw your attention to yet another matter that the stakeholders highlighted on fiscal consolidation. Stakeholders noted that the measures taken by the Government to attain fiscal consolidation by enhancing revenue collection through the comprehensive review of the tax system, among other strategies, appear too ambitious. They were of the view that given the sluggish performance of the economy in recent financial years, as evidenced by the low growth of the Gross Domestic Product (GDP) to below 3 per cent, expenditure cuts, while maintaining realistic revenue measures, would have guaranteed effective fiscal consolidation. Further, considering that from 2017 to 2019, about 90 per cent of the microeconomic objectives have not been attained, it is likely that even the 2020 microeconomic objectives may also not be achieved. In this light, the Committee recommends that Government should consider remodelling the fiscal consolidation targets by instituting expenditure cuts while maintaining realistic revenue targets.

Mr Speaker, before I conclude, allow me to point out that the majority of stakeholders commended the Government on the decision to maintain the Value Added Tax (VAT) against the Sales Tax following various concerns by stakeholders on the matter. However, stakeholders expressed concerned on the revenue target of 22 per cent of GDP for the 2020 financial year. They submitted that the prevailing economic conditions would suppress economic productivity and ultimately compromise revenue collection in the country. The expected drop in mining production and earnings, excessive load shedding, expected increase in electricity tariffs, high fuel prices and, generally, the high cost of production, would negatively affect economic activities and the projected revenue collection.

Mr Speaker, as I conclude, I wish, on behalf of the Committee, to express our gratitude to you for granting us the opportunity to scrutinise the estimates of revenue and expenditure for the 2020 Budget. Further, I also wish to thank the Clerk and her staff for the support rendered to the Committee during it deliberations on the estimates of revenue and expenditure for the 2020 fiscal year. Last but not least, I wish to pay tribute to all the stakeholders who made both oral and written submissions at short notice to your Committee during this period.

Mr Speaker, I thank you.

The Minister of Finance (Dr Ng’andu): Mr Speaker, as I wind up the debate on the estimates of revenue and expenditure for the financial year ending 31^st December, 2020, I would like to thank the hon. Members from both sides of the House for debating this Motion with the outmost candour and passion.

Mr Speaker, in the midst of this passionate debate, confusion was expressed at some point regarding my own gender. I want to assure this House that I am still male. I also wish to express my gratitude to the expanded Budget Committee for working tirelessly and according various stakeholders and the general public, an opportunity to provide constructive comments on the various aspects of the Budget.

Mr Speaker, in the course of the debate, there was also an attempt to identify me as the only good man from amongst my hon. Colleagues in the Government. While I was naturally flattered by these accolades, I must be quick to add that flattery is a form of corruption, and I know that this House takes a very dim view of corruption.

Interruptions

Dr Ng’andu: Mr Speaker, nineteen days ago, I came to this House as a bearer of a message from His Excellency, Mr Edgar Chagwa Lungu, President of the Republic of Zambia, recommending favourable consideration by this House of the 2020 Budget. This Budget was prepared through the combined work of all of us in Cabinet. In presenting it to this House, I was the privileged mouthpiece speaking on behalf of all my able and hardworking colleagues in Cabinet.

Sir, as I speak to request for unfettered support for this Budget, I have attempted to capture and respond to some of the concerns and issues raised by hon. Members of this House in the course of the debate. In so doing, I want to begin by stressing that the Budget has been prepared against a backdrop of limited fiscal space, which has affected the amount of discretionary resources available for the implementation of these budget allocations. Consequently, it has had a telling effect on the amounts of resources allocated under the various heads of expenditure.

Mr Speaker, the first concern expressed was that in its content, the Budget does not speak to the theme, which is “Focusing National Priorities towards Stimulating the Domestic Economy.” On the contrary, I wish to state that the Budget abundantly attempts to do just that. Current liquidity constraints present a challenge to economic activity and growth in the country. To be able to stimulate economic activity, the Budget proposes a number of measures to help individuals, small businesses and corporate entities gain access to this much-needed liquidity. These measures include:

zero-rating capital equipment and machinery for the mining sector and zero-rating VAT on copper cathodes sold locally so that mining companies and companies involved in copper processing are not subjected to liquidity constraints induced by delays associated with the VAT refund system and which adversely affects corporate cash flows and, subsequently, production;
substantially increasing the allocation of resources directed at dismantling arrears in order to unlock liquidity among small-scale contractors and various suppliers of goods and services to the Government; and
increasing the use of local contractors through the enforcement of the requirement to allocate at least 20 per cent of works being done under any major projects in order to put more money in the hands of Zambians, who in turn, will use it to lubricate the economy through their spending. In short, there will be more money in people’s pockets.

Hon. Government Members: Hear, hear!

Dr Ng’andu: Sir, furthermore, fiscal incentives in the form of suspension of duty on aquaculture equipment are intended to encourage investment leading to growth in this industry. It is also pertinent for the House to note that notwithstanding the existing constrained fiscal space, this Budget has not yielded to the temptation to adjust upwards direct taxes and VAT rates. This is meant to preserve disposable income in the hands of ordinary taxpayers.

Hon. Government Members: Hear, hear!

Dr Ng’andu: Mr Speaker, a second and widely repeated concern expressed mainly by hon. Members on your left was that the amount allocated to public order is excessive because it will serve to enhance the capacity of the security personnel to teargas innocent citizens.

Sir, the truth is that the allocation under this Head is intended to facilitate the completion of various infrastructural projects such as housing units for men and women in uniform, modernise their equipment and provide other resources necessary for them to carry out their work. Particularly, it is intended to replace obsolete equipment which is of no use in the face of the complexity of fighting crime and protecting the integrity of this country given the rapid change in technology. In addition, funding for these projects will come from disbursement of loans that have already been contracted and not new borrowing.

Hon. Government Members: Hear, hear!

Mr Livune: Question!

Dr Ng’andu: Sir, I am also weary to think that the work of our men and women in uniform, some of whom put their lives on the line everyday in the course of their duty, can be trivialised as to be reduced to only that of throwing teargas at people. I think it is totally inappropriate to characterise the work of our security service personnel as essentially being that of brutalising our people. On the contrary, we owe it to them to honour them for their sacrifice and service to this country and one way in which we can do this is to equip them adequately to the extent that we can in order for them to continue to guarantee our safety as a people and as a nation.

Hon. Government Members: Hear, hear!

Dr Ng’andu: Mr Speaker, the third concern raised was that the amount allocated to climate change is too small and not commensurate with the pivotal position that has been given to climate change in this Budget. In response to this, it is necessary to give context to the K611,777,853 shown in the Budget under the Head, “Environmental Protection”. This amount specifically covers funds for climate change and resilience projects and the Zambia Integrated Forestry Landscape Project under the Ministry of National Development and Planning. It also incorporates the Environment Management and Protection Project and Zambia Environmental Management Authority (ZEMA) under the Ministry of Water Development, Sanitation and Environmental Protection and, finally, the Climate Policy implementation and Forestry Management Project under the Ministry of Lands and Natural Resources. The reduction in the allocation from 2019 to 2020 is due to the completion of the Itezhi-tezhi/Dundumwezi/ Namwala Climate Resilience Project.

Hon. Opposition Members: Question!

Hon. Government Members: Hear, hear!

Dr Ng’andu: However, the Budget does respond more specifically to the climate change challenge with a number of measures which in part propose to:

suspend import duty on machinery used for the processing of solid waste to generate electricity and produce organic fertilisers;
abolish customs duty on liquefied petroleum gas;
increase carbon tax on motor vehicles entering Zambia by 20 per cent; and
remove VAT on stoves, other gas cookers and gas boilers.

Dr Ng’andu: Mr Speaker, these measures are intended mainly to reduce dependence on hydro-power and encourage the use of other sources of power for domestic and industrial consumption. The measures contained in the 2020 Budget are also in addition to measures already announced in the 2019 Budget which include:

customs duty exemption on machinery and equipment that are imported for building of power stations, irrigation canals and dams;
zero-rating for VAT purposes energy saving appliances, machinery and equipment which include energy efficient lighting lamps, fluorescent tubes and bulbs, solar geysers, solar panels, solar batteries and inverters for solar power; and
increasing customs duty on electric geysers, electric stoves and shopping plastic carrier bags to 40 per cent from 25 per cent.

Sir, environmental protection is also mainstreamed under the various heads of expenditure. Since it is considered as a major cross-cutting issue, all ministries and spending agencies will be expected to incorporate environmental concerns in their programmes.

Mr Speaker, it is gratifying to note this House’s great concerns expressed here regarding how the Government proposes to fund measures intended to increase this country’s capacity to meet the challenge of climate change. This suggests that this House has gone past the stage of climate change denial.

Hon. Government Members: Hear, hear!

Dr Ng’andu: However, just in case there is doubt or ambivalence in the minds of some hon. Members, I wish to direct attention to the words of one of Russia’s greatest writers, Leo Tolstoy, who writes thus:

“At the approach of danger, two voices always speak with equal force in man’s soul. One voice tells us to weigh the danger and act now, the other says it is too painful and tormenting to think about the danger when it is not in man’s power to foresee everything and save himself. In solitude, we listen to the voice of alarm, in company we listen to the voice of denial.”

Sir, the question is: Which voice are we listening to in this House?

Mr Speaker, the fourth concern expressed is that our allocation for debt management is inadequate, especially since debt is, as it were, “the elephant in the room.” Bringing debt to levels which are sustainable is one of the key objectives that this Budget seeks to achieve through the implementation of a battery of measures, which includes:

slowing down on debt contraction;
postponing and/or cancelling certain pipeline loans; and
ceasing the issuance of sovereign guarantees in pursuit of fiscal fitness.

These measures require that we give some clarity to the K30.6 billion reflected in the Budget as external financing and which has been construed as new borrowing. This amount is not additional borrowing, but is mostly disbursements from already contracted loans, which cannot be cancelled or delayed without suffering costs in the form of penalties or giving rise to legal liabilities, which could end up costing the country much more money. These resources will continue to finance various developmental projects and programmes, including the improvement of urban and, particularly, rural access roads, which are so desperately needed, especially in the rural constituencies that most of us are concerned about.

Prof. Luo: Hear, hear!

Dr Ng’andu: The resources are also needed for the completion of hospitals and schools, among others, and re-scoping some works in the road sector from bituminous to all weather gravel roads in order to reduce the cost of completing already designated roads.

Mr Livune: Question!

Dr Malama: Correct!

Dr Ng’andu: Other measures also include:

expanding the National Road Tolling Programme, which will constitute the backbone of the roads maintenance programme;
completing the expansion and modernising of the Kenneth Kaunda International Airport (KKIA) as part of the effort to make Zambia an air transport hub, given its geographical location. We must be ambitious enough to transform Zambia’s geographical location a strategic advantage in as far as air transportation in the region is concerned; and
increasing the use of the balance sheet financing models such as Public Private Partnerships (PPPs) to implement projects which have the capacity to generate future income streams on a sustainable basis.

Hon. Government Members: Hear, hear!

Dr Ng’andu: Mr Speaker, the fifth concern expressed calls into question; the adequacy of the proposed domestic resources mobilisation strategy. Against the background that the estimated level of tax compliance in Zambia is somewhere around 58 per cent, there is a lot of room for increased revenue collection by addressing tax compliances and administrative challenges using automation provided by emerging technology. Accordingly, the Budget proposes a number of measures which aim to increase compliance and, therefore, increase tax revenue. These include:

upgrading tax online systems within the Zambian Revenue Authority (ZRA) for domestic taxes and linking them to the customs systems to ensure all import Value Added Tax (VAT) claims or refunds are validated through the system based controls against data in the customs system;
implementing a service platform and payment gateway to create efficiencies in service delivery and tracking of revenues;
making it mandatory to use Electronic Fiscal Devices (EFDs) for all consumption tax related transactions, which will include VAT and turnover tax; and
enforcing a mandatory capture on invoices of the Taxpayer’s Identification Number (TPIN) and names of the buyer and seller of goods and services among businesses and the Government transactions. This makes it difficult for people to cheat.

Ms Siliya: Hear, hear!

Dr Ng’andu: Further, we want to ensure that VAT claims are timely audited and verified.

Mr Second Deputy Speaker: Order!

May the hon. Minister withdraw the word ‘cheat.’

Dr Ng’andu: Mr Speaker, I withdraw the word and replace it with the word ‘evade’ or ‘non-compliance’.

Dr Malama: Correct!

Mr Lusambo: Hear, hear!

Dr Ng’andu: Mr Speaker, other measures also include:

enhancing data analytical and bulk data matching with third party institutions such as the Patents and Companies Registration Agency (PACRA), Ministry of Lands and Natural Resources, National Pension Schemes Authority (NAPSA) and Zambia Public Procurement Authority (ZPPA), so that transactions taking place in these entities can be captured by ZRA, and where tax is applicable they can pick it;
using the electronic tax clearance certificates, especially in public procurements in order to avoid incidents of forgeries associated with manual tax clearance; and
dealing with the challenge of transfer pricing by providing for price premium adjustment. Transfer pricing is a huge source of leakage in our tax system and we need to deal with it.

Sir, in addition, the Budget, introduces a number of tax related measures with the view to increase revenue by proposing to:

limit input VAT claims on consumables, such as stationery, lubricants and spare parts for all entities, except where these are stock in trade;
charge customs duty at 10 per cent on specialised mining capital equipment and machinery which currently is taxed at 5 per cent;
limit input VAT claims from mining companies on diesel to 70 per cent from the previous 90 per cent; and
limit input VAT from mining companies on electricity from 80 per cent from the current 100 per cent. This is to capture the fact that mining companies do not generate output VAT because all their products are sent out as exports.

Mr Speaker, in combination, the last three measures will enhance revenue collection from mining companies, which is in response to the view that the country needs to collect more tax from mining companies than it is currently collecting. These tax related measures will be supplemented by specific non-tax measures, including revaluation of properties following the enactment of the Rating Act, the modernisation and automation of revenue collection processes and provision of Government services.

Sir, another concern expressed in the debates relates to how wastage and abuse of resources in the public sector will affect the performance of the 2020 Budget. In response to that, the Budget proposes to use automation in the delivery of Government services in order to bring about efficiency gains, which should reduce the cost of running the Government and remove wastage. A number of specific measures that the 2020 Budget proposes to implement include:

effective management of the public service wage bill and other expenditures. This measure is necessary so that the Government can remove ghost workers from the payroll, dead people should not continue getting paid;
revising the Public Procurement Act to provide for reference pricing and strengthening oversight for high value procurements;
implementing a comprehensive system for the appraisal of projects in order to strengthen the management and implementation of public investment; and
reforming the Farmer Input Support Programme (FISP) by ensuring that the FISP register is electronically verified using the Zambia Integrated Agricultural Management Information System (ZIAMIS) and is effected and, thus, remove duplicates and ghost farmer beneficiaries.

Mr Speaker, the above concerns are by no means exhaustive, but capture in a greater part the key talking points around the 2020 Budget. The Government thinks that the Budget is realistic and does not raise false expectations. A combination of such measures as bringing debts to sustainable levels, enhancing domestic resource mobilisation, effectively managing expenditure, increasing efficiency of the Government and reducing on wastage in the public sector, which are contained in the 2020 Budget, can deliver the necessary adjustments that can put us on the path to sustainable growth, even with the current backdrop of a limited fiscal space.

Mr Speaker, therefore, I urge this House to look at proposals contained in this Budget with abundant favour.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Lubinda: Ema Minister aya!

Question put and agreed to.

ADJOURNMENT

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

Question put and agreed to.

_______

The House adjourned at 1611 hours until 1430 hours on 17^th October, 2019.

____________

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