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NATIONAL ASSEMBLY HANSARD - 23 JANUARY 2013 VOL. 40 NO. 25

Thursday, 23rd January, 2014.

The National Assembly met at a Quarter-past Two o'clock p.m.

 

PRAYERS

(MR. SPEAKER in the Chair)

MOTION

RATIFICATION OF THE LOAN AGREEMENT BETWEEN THE GOVERNMENT OF ZIMBABWE AND EXPORT-IMPORT BANK OF CHINA RELATING TO KARIBA HYDRO POWER STATION

THE MINISTER OF FINANCE & ECONOMIC PLANNING (MR. CHINAMASA): I move the motion in my name THAT WHEREAS, Subsection (3) of Section 327 of the Constitution of Zimbabwe provides that an Agreement which is not an international treaty but which has been concluded or executed by the President or under the President's authority with one or more foreign organisations or entities and imposes fiscal obligations on Zimbabwe does not bind Zimbabwe until it has been approved by Parliament;

And WHEREAS, the Loan Agreement between Government of Zimbabwe and Export-Import Bank of China relating to Kariba South Hydro Power Station Extension Project being implemented by Zimbabwe Power Company (ZPC) was concluded on the 11th day of November 2013, in Harare, Zimbabwe.

NOW THEREFORE, in terms of Section 327 (3) of the Constitution, this House resolves that the aforesaid Loan Agreement be and is hereby approved.

Mr. Speaker Sir, one of our priority issues is to get right and to fill the gap in energy. It is in this regard that I am taking the opportunity to table for approval by this august House the loan agreement for the Kariba South extension.

Government, in its efforts to meet current and future power requirements, as well as to improve service delivery which contributes to economic growth, is in the process of implementing a Power Generation Expansion Programme.

Some of the major power stations earmarked under the Power Generation Expansion Programme include the Hwange Thermal Power Station 7 and 8; Kariba South Hydro Power Station; the Batoka Gorge Hydro Power Station and I might add and it is not in my speech the Gwai Thermal Power Station.

In this regard, Government is in the process of mobilizing resources for the expansion of the above mentioned power stations. In line with the above, a Preferential Loan Agreement was signed between the Government of Zimbabwe and the Export-Import Bank of China on 11th November 2013, for the Extension of Kariba South Hydro Power Station.

The Kariba South Hydro Power Station Extension Project entails the construction of additional two power generation units which will provide an additional 300MW of power to the national grid.

The contractor of the project is Sinohydro Corporation Limited of China and the commercial contract was signed on 20th December 2012 between the Zimbabwe Power Company (ZPC) and the Contractor.

The project will be implemented over a period of three years.

The contract price for implementing this project is US$355 million, of which US$319.5million will be provided under the aforementioned Preferential Loan Agreement, signed between the Government and the Export-Import Bank of China, representing 90% of the contract price.

The Zimbabwe Power Company is obliged to provide the remaining 10%, amounting to US$35.5 million of the contract price. I might add Mr. Speaker Sir that, that amount has since been paid.

In addition, the Zimbabwe Power Company will be required to raise US$85 million to cover the project development costs. In this regard, an allocation of US$10 million has been provided in the 2014 Budget estimates to assist the Zimbabwe Power Company.

The loan of US$319.5 million from China Exim Bank will attract an annual interest rate of 2%, commitment fees of 0.25% per undrawn amount and a management fee of 0.25% on the loan amount. The loan repayment period is 20 years including a 5 year grace period.

The project is being implemented by the Zimbabwe Power Company, who will be responsible for the principal loan and interest repayment from the proceeds of electricity sales into the national grid.

Zimbabwe's current generating capacity, Mr. Speaker Sir, stands at 1 200MW per day against a current power demand of 2 200MW. However, this represents suppressed demand considering that industry is operating at below capacity.

13. Implementation of the Kariba South Hydropower Station Extension Project is expected to yield the following benefits:-

· Reduction of load shedding by 300MW at peak times, but that is of course, after the gestation period of construction.

· Zimbabwe is an agro based country, therefore, reliability in energy supply will improve agricultural production which will ensure food security and availability of agricultural raw materials to industry.

· Reliable domestic power supply will reduce power imports, which in turn will release funds to other critical power generation priorities.

· The project will also create employment over the three years implementation period.

· The project is the least cost capacity extension in Zimbabwe as it will utilise existing infrastructure such as the Kariba Dam and transmission lines running from Kariba to Alaska Mine.

· The project will minimise power outages when other existing generating units are undergoing maintainance.

With these remarks, Mr. Speaker Sir, I ask this august House to approve the loan agreement which we signed in November with the China-Exim Bank, the loan being US$319.5 million. I thank you.

MR. BITI: Thank you Mr. Speaker Sir. I rise to express our side of the House's support for this particular agreement and also acknowledge that this agreement is in fact a baby of the Government of National Unity. It was spearheaded by the ex-Minister of Energy, Cde. Mangoma. - [HON. MEMBERS: Inaudible interjections]-

Mr. Speaker Sir, the amounts that have been sourced from the Chinese Import and Export Bank for the financing of the Kariba South power construction, in the sum of US$319 million, represents work that should have been done at Kariba South, possibly, 10 or 20 years ago. What is happening in this matter is that two generators are going to be constructed or inserted at Kariba South by Sinohydro. The Zambians did the same work using the same company 12 years ago. So, in fact we are 12 years behind.

The generation capacity of Kariba, at peak is 700MW. That is the maximum. If you construct these two additional generators you will be able to increase output from Kariba South by 35%, which is 35% of 700MW. Even with this increased capacity and the depressed status quo of de-industrialisation, the country's requirements of energy are around 4000MW. So, even with Kariba South, the country still needs to do a lot with regards to the issue of the power sector. I submit Mr. Speaker Sir, that the negotiations that had been started in respect of Hwange 7 and 8, which would increase power generation in Zimbabwe by 1000MW, should continue and be concluded.

The negotiations that had been started with the Zambian Government with regards to Batoka; as colleagues will know, the Zimbabwean Government, at least the GNU was in negotiations with the Government of Zambia over the construction of a power station at Batoka, which would produce about 2000MW in respect of which Zimbabwe would get 1000MW. I hope that these negotiations will be concluded.

Coming to this specific agreement, the new Constitution does not allow this Parliament to act as a rubber stamp to debts that would already have been contracted. The new Constitution insists that Parliament gives its approval before the agreement is executed. In this matter, the agreement was executed on 13th November, 2013. So, the point we are making, Mr. Speaker, is that while for now we will happily turn an oversight to Section 327 of the Constitution, in future the Government of the day must respect the laws of the country. With those few words, Mr. Speaker, I support the motion.

MS. ZINDI: Thank you Mr. Speaker, I also rise to support the motion presented by the Minister of Finance and Economic Development, on this loan facility. I would say that this loan facility, in order to upgrade our electricity generation, was long overdue. Looking at the power cuts that we are experiencing as a country and over the period of time we have been going through the power cuts, this has had a negative impact on our industry. As we read in the papers, where we are being told that the industry is operating at about between 34-49% and what does that spell in terms of jobs. Definitely, it tells us that there are quite a number of our people losing jobs and it has got a chain reaction in terms of the industry, irrigation farming and others.

So, the sooner they speed up, the better, in terms of the Minister of Finance and whoever is involved in terms of further negotiations for the thermal power generation in order to augment our capacity generation so as to facilitate even the smelting of the platinum which we have been informed that it is being done in South Africa for example. In the process, we are losing quite a number of other minerals as we are told that there is gold and all other minerals. I am a layman in terms of minerals but I am told quite a number of other - [MR. BITI: Yes you are, I concur with you on that one you are very correct] - [HON. MEMBERS: Inaudible interjections].

As I said Mr. Speaker, through you, I am a layman in as far as minerals are concerned and I would not know exactly what the types of minerals, are but I have heard of gold of course. So, all those minerals would actually be within the borders of Zimbabwe because I do not think there could be anybody else who could be honest enough to say to the Zimbabwean Government, oh! We have found this and that and here are your remittances in terms of the minerals that were found in there. So, if it is done within our borders the better. Hence, I am supporting this loan. Minister, you can happily sign that deal even though there are some who are of the opinion that Parliament - [HON. MEMBERS: Inaudible interjections] - through you Mr. Speaker, the deal has already been signed.

As I said earlier on, this is the right time that we should focus on capacity generation of our electricity in the country. I thank you.

*MS. CHIMENE: Thank you Mr. Speaker Sir. I would like to agree and support the motion by the Minister of Finance and Economic Development. Before I delve much into it, I want to thank our President, Cde Mugabe for the wisdom that he had in having a friendship with countries like China who have now come in to show that they are genuine friends. They are real friends who can understand that my colleague is now having challenges. So I want to immensely thank the Head of State for choosing friends who can give credit because some other friends cannot give credit even money to purchase a loaf of bread. It is a lot of money that they have given as especially looking at the fact that it is a country that is giving another country such a large amount of money. We are thankful to President Mugabe for such wisdom - [HON. MEMBERS: Inaudible interjections]-

MR. SPEAKER: Order, order, there is no need for heckling please. Can you allow the hon. member to complete her debate.

*MS. CHIMENE : Thank you Mr. Speaker Sir. Mr. Speaker Sir, if we had an opportunity to work starting from the year 2000, you find that this discussion began a long time ago and because we had some political instability and lack of unity of purpose even in this House, this credit should have come in this House even last year but probably it might have failed to sail through.

Now, I am supporting the minister by saying, minister, the credit that you got should work as we support our Head of State saying find another line of credit so that everything that has to be put in place is put in place. We are assuring you that in this House, we can now pass every Bill that has to be passed in this House without any hindrance. Therefore, congratulations minister. We are supporting, as Parliament and as your team, that we should take the credit and we must have it so that it can work. Thank you Mr. Speaker.

MR. KEREKE: Thank you Mr. Speaker Sir, for according me this opportunity to support earlier speakers on the important subject of energy. I do concur with Hon. Biti that sometimes even when the Constitution says, one thing, if it is in the public interest we need to be flexible and meet as a House to agree and approve.

Mr. Speaker Sir, I want to add further to the positive points already contributed by earlier speakers to say, good and noble projects like this very one, die at the altar of implementation. A loan which gives you 5 years grace period and an annual interest rate of 2%, which is well within the country's threshold of London Interbank Rate liable(LIBOR) +-3%, this is an example of a very good loan at extremely soft terms.

Now, I was going to make a request Mr. Speaker Sir, that our tentacle that deals with energy, goes into the depth of the details of implementation for the oversight role of Parliament, to then ensure that the virtuous loan bears fruit.

There is a tendency Mr. Speaker Sir, that in noble projects, there is a leakage factor of 50 - 60%. The loan has been approved and it is sufficient to do the job but two to three years down the road, the equipment starts to rot at the implementation side - [AN HON. MEMBER: Kunyanya kuZANU ikoko] . The project consultants start to board aero-planes to fly back and we would then wonder 10 years down the road, when the project is not completed because we allow certain costs to come in too late in the project. You will hear of consultancy fees that were never part of the project, you will hear of some workshops to be done in another continent. To talk about Kariba South… -[HON. MEMBERS: Hear, hear]- We would want this Parliament to be a different one in that where there are noble projects, the House unites in supporting those projects regardless of political affiliation. This has been demonstrated by Hon. Biti. Implementation is what we need to emphasise on.

Today, I had the opportunity to buy one daily newspaper, 'The Herald' which had an article on hefty salaries of US$200 000 and something in Zimbabwe per month. The same institution cannot pay for medical bills for cancer patients. I am bringing it in this House because it is relevant -[HON. MEMBERS: Hear, hear]- I am bringing it in Mr. Speaker Sir, because it is very relevant to the decision brought before this House that this House condones and approves this very good loan.

Zimbabwe! Zimbabwe! Zimbabwe! Let us not allow daylight robbery to tax payers -[HON. MEMBERS: Hear, hear]- The subscriptions that are being paid by civil servants hoping that on the day of reckoning when it matters the most and they need to access a certain service must be deployed usefully. They cannot get the service. Our industries are operating at terribly below capacity and it is the hope that this energy project will go a long way in elevating our capacity utilisation. I just want to end by saying that the loan is a noble loan. As Parliament, our oversight role on the Executive, we need to make sure that no penny is lost through leakage. Thank you Sir -[HON. MEMBERS: Hear, hear]-

MR. MARUMAHOKO: Mr. Speaker, yes, the look East policy is now bearing fruits. Electricity is key to the growth of our industry and to anything that we may need to do in terms of developing our country. This country can do more if we were to look at the small thermal generations. Look at Mutare; Mutare can light itself in terms of small generation if we were to proceed that way.

During my time in the Ministry of Energy, that was in 2004 to 2008; we encouraged small thermal generation to be carried out in the Mutare area and in the areas where we have big dams that can afford to generate electricity. In Lupane, where you come from, Mr. Speaker; there are vast resources of cobalt methane. Cobalt methane can also add to the generation of our electricity. I wonder what happened to the pilot project we started in Lupane for cobalt methane in order to generate electricity. If that project had been carried through, we would be talking of a different story together.

On beneficiation of products in this country, if there is no electricity, we might as well forget. So this is a noble loan that the minister negotiated. We should thank the Chinese for not looking at what the world says about Zimbabwe but taking us as their partner. I would also want to add my voice to that, this is a noble loan and I also urge every member in this House to support the loan.

MR. MARIDADI: Thank you Mr. Speaker. I rise to add my voice to this very important motion but I wish to highlight just a few technical issues about the investment in Kariba South.

Mr. Speaker Sir, as we celebrate this investment and that there will be an increase of 350 megawatts, we must also be cognisant of the fact that; investing only in power generation might not be the end of our woes. We also need to invest in the grid that evacuates the power from the source of generation to sub stations and to again invest in the networks that then distribute that power to the consumers. After getting this loan, efforts must be put to get money to invest into the grid and into the network.

I also want to say that the increase in 350 megawatts is not for base load but for picking up load. I also wish to say that the route we must be investment in green projects. We must invest in Batoka jointly with the Zambian Government after the Zimbabwean Government has done good a debt that has been outstanding since the disbandment of Federation. Zimbabwean and Zambian Governments must be guarantors of the Batoka loan. Those are the issues that I would like to highlight but the most important is that, there must be an investment in the grid because the grid has not had any investment ever since it started operating in the 1960s.

I will give you an example in Mabvuku-Tafara, the network that was installed in the 1970s when that suburb was established is the same dilapidated network that we still expect to carry load from sub-stations into the households. That network is not good enough for that load. I thank you Mr. Speaker.

*MR. MACKENZIE: Thank you Mr. Speaker.I would also want to add my voice to this issue on the loan. I am the Member of Parliament for Kariba Constituency. I want to thank our Government, our President and Ministers for their expertise and intelligence because of the oversight on the needs of the nation. We have had problems in the supply of electricity leading to power cuts. As residents of Kariba, we are the people who were moved from Kariba so that the dam could be constructed and the country accesses electricity, but alas, the rural areas of Kariba are not electrified because generation of electricity in the country is low. Therefore we only hope, by the fact that this project is going to be implemented, electricity is going to be distributed to rural areas, which especially include rural Kariba.

Mr. Speaker Sir, the implementation of this project is going to lead to the increase in the employment creation in Kariba. We are looking forward to the creation of 700 jobs and we hope and trust that these jobs will be given to residents of Kariba. It is a known fact that Kariba is a drought prone area; whether we talk about irrigation, we cannot carry out irrigation due to power problems. Therefore, we hope that when this project is implemented, we will have more irrigation projects that will assist...

MR. MUTSEYAMI: On a point of order Mr. Speaker Sir. The hon. member is not speaking to the motion. It is more important that we appreciate all presentations but he must stick to the motion and be clear - [HON. MEMBERS: Inaudible interjections] -

MR. SPEAKER: Order, order. The hon. member who has raised a point of order, I think was not listening very carefully. What the hon. member was trying to put across is that, such a project similar to Kariba must create local employment - [HON. MEMBERS: Hear, hear].

*MR. MACKENZIE: Thank you Mr. Speaker Sir, I am saying this project means that according to the people of Kariba, we are looking forward to getting employment for the people in our area. We are also looking forward to implementing irrigation schemes in our country and we hope this project is going to take four years. These four years should lead to the economic development of Kariba because we will have more investment in Kariba through people coming to support this noble cause. More houses for accommodation and offices will be created because of this agreement and Kariba is going to develop.

Consequently Mr. Speaker Sir, I hope that all the hon. members in this House should support this noble idea. Even if there are sanctions prevailing in the country, which were borrowed for us by our fellow Zimbabweans, this is going to be a noble cause which will lead to the development, not only of Kariba, but of Zimbabwe as a whole. I thank you.

MR. MADZIMURE: Thank you Mr. Speaker. I am totally in support of the approving of the loan agreement that the hon. minister has presented to this House. I would also want to thank those who initiated the negotiations for this particular agreement who include the former Minister of Energy - [HON. MEMBERS: Inaudible interjections] - Mr. Speaker, it is important to acknowledge people who have done something good for the country. This was a protracted negotiation for us to get to this agreement. Mr. Speaker, this is what we call development cooperation and whenever you enter into such agreement, there are certain conditions that must be made clear.

MR. SPEAKER: Order, order. Hon. Zindi, can you observe decorum please. Can you carry on.

MR. MADZIMURE: Thank you Mr. Speaker. There is no free lunch in this world. As a result, whenever you enter into an agreement, you must look at your side and say, what is it exactly that we are going to benefit. Therefore, it is important that the minister also should have taken some bit of time to get to the details and tell this House on how much we are going to benefit as a country. The 350 megawatts that we are going to benefit should not be only the benefit to be derived from this particular agreement. Whenever we have an agreement, we must ensure that whatever is going to be supplied, we as Zimbabweans are in charge of the materials that will be supplied.

In terms of the technical assistance that is required, it must be very clear as to what extent we will receive technical assistance and for what period will we receive the technical assistance. It should also be clear on how much is going to be left in the country and what we are going to benefit in terms of our own people being able to maintain. Mr. Speaker, it is common knowledge that in most cases, you find that out of the $390 million that we are going to get, very little will go to the actual work, which may end up forcing us to look for some more money to add to this. There are also certain contracts that will be entered into and that is where my real concern is.

Mr. Speaker, we now have this culture that in any contract that we enter into, 10% goes to an individual's pocket and these are some of the things that are going to happen to this particular contract - [HON. MEMBERS: Inaudible interjections] - What is it that we should do as Parliament Mr. Speaker? It is the role of this Parliament to periodically receive reports from the minister, of the progress on the implementation of this particular project. Mr. Speaker, it is important for us to know exactly how long the project is going to take so that as Parliament, we will be able to do our oversight role. Therefore, project review and project reports must be submitted to Parliament because we will have authorised this particular loan and the Executive must be accountable.

The other issue Mr. Speaker is, we cannot rest after having achieved this. The 350 megawatts will add on to the 1 200 that we generate but we need 250 which is a surpassed figure. We are also using a wrong measure altogether at this particular moment because our industry is performing so badly that the energy requirement that we require right now is not, under normal circumstances, what should be our real requirement. Mr. Speaker, it is important that all other projects that need to be carried out to ensure that we generate more power, must be embarked on, especially the Batoka where we are guaranteed of something like 200 000 megawatts as Zimbabwe. There is that possibility that we can also be a net exporter of energy; we must be able to export energy. Mr. Speaker, the issues that I have raised include the conditions of the loan such as, who will be responsible for what?

Hon. Mackenzie was right when he was talking about what his aspirations are out of this particular project, but I tell you Mr. Speaker, he will be the first person to come back here and say the people of Kariba have benefited nothing. It must be clear that whenever you embark on such a project, the local people can actually see the difference. As far as I am concerned, the $390 million, if it is going to be all spent in Kariba, there should be crumbs falling from the table for the people of Kariba. For the whole implementation period of the project, life in Kariba should not be the same. It must be transformed and maybe, transformed forever.

MR. CHINOTIMBA: I want to thank the Minister of Finance and Economic Planning and in support, I would like to say the loan that he is talking about, should be used for Zimbabwe. I also wanted to give a word of advice to the Minister. Since the beginning of the Inclusive Government, a lot of things were said, for example, the Noah Petrol issue that had been arranged by the former Minister of Finance when they got rid of Mobile to come up with Petro Trade and other service stations that were formed. Within five years, we had more than nine companies. As a result of that Noah issue, we ended up not getting enough fuel. We do not want a repeat of such kind of corruption.

When funds are advanced to Zimbabwe, those funds should be used by the people of Zimbabwe to develop our country. We do not want corrupt activities as what happened with the previous Minister of Energy who formed nine companies. We want the money to be used …

MR. MUNENGAMI: On a point of Order Mr. Speaker. The contribution being put forward by Hon. Chinotimba does not have substance as it does not have tangible evidence. It is just hearsay. We do not debate rumour mongering because as far as we know, there was a similar case that was tried before the courts and there was no evidence. Again, Hon. Speaker, the issue that was raised by the minister, has been thoroughly debated. We need to be debating on the budget. This issue was concluded. Should we continue debating issues of yesteryear into the future?

MR. SPEAKER: Order, order. Hon. Chinotimba had not finished debating. So, at this juncture, I do not think it is proper to anticipate that there is no evidence when a person has not finished debating. Hon. Chinotimba, you can continue with your debate.

* MR. CHINOTIMBA: I was making my contribution, and looking at the state of our country because of financial and electricity problems, we need to thank the Minister for what he has brought before this august House. As Members of Parliament, we should support and advise him on the best way forward for the development of our country nekuti kuziva mbuya huudzwa.

There is an adage that says, 'once bitten, twice shy', therefore we need to be fore-armed and I am talking of what happened. This happened. We have heard of people who have created new companies and changed their names so they could get into corrupt activities. We are saying such corrupt activities should end now and give priority to the Zimbabweans so they can benefit from what is rightfully theirs.

Mr. Speaker, as Members of Parliament, we have to debate meaningfully and not just rubber-stamp motions. When a person has done something wrong, he should be tried personally and not blame on an organisation or party because of one individual. We cannot blame MDC as a whole because of one person. Let us pin-point the blame on that person. If one MDC person is divorced by his wife, it is that person and not the MDC party.

The issue that I am debating, they may laugh or mock me, but it is the issue of corruption because it was raised and people clapped their hands. The issue of private companies as said by Hon. Kereke, is not about ZANU PF or MDC, it is an individual. When a person has a case to answer, he should be taken before the courts and not castigate an organisation or party. We are parliamentarians. If there was a person who was on payroll while also undertaking corrupt activities, let us point at that person. …

MS. MATIBENGA: I wish to raise a point of order. The hon. member is switching from one language to the other and I know that - [HON. MEMBERS: Inaudible interjections].

MR. SPEAKER: Order, order. The point of order is in order.

Hon. Chinotimba, we agreed that we are not going to do code switching in our debates. Therefore, you may continue.

*MR. CHINOTIMBA: Thank you Mr. Speaker Sir. At times I find that we have very few matching words in Shona. Therefore, I had to put some little bit of English in order for me to explain my point clearly. I could not find proper Shona words, hence code switching. I agree with my fellow contributors to this motion that, we need to support the motion raised by the Minister of Finance. Thank you very much.

*MR. CHAMISA: Thank you Hon. Speaker for affording me this opportunity to make my contribution. I realise that Hon. Chinotimba made his contributions in Shona. If I make my contribution in English, he may not be able to comprehend my contribution. Therefore, I will make my contribution in Shona for his benefit.

*MR. SPEAKER: Order, order. Hon. Chamisa, you are going round and round without explaining yourself clearly. I would kindly ask you to withdraw your statement? It is unparliamentary language.

*MR. CHAMISA: Thank you Mr. Speaker Sir. I apologise and I withdraw my statements. -[HON. MEMBERS: Inaudible interjections]-

Thank you Mr. Speaker Sir. The motion which has been raised by the Minister of Finance is important. It affords us to get development through the generation of electricity. I know my seniors in the Party have supported this motion. Whilst we are together in the support, I have a few questions which I have to raise regarding this credit facility which is being extended to Zimbabwe. Why is it that Zimbabwe is always borrowing money left, right and centre? When are we going to come to a stage whereby, as the august House and as a country, we will be able to extend credit facilities to other countries?

I also want to know Mr. Speaker Sir, that when we are borrowing money from China, where is it creating its wealth where we cannot also go and create our own wealth, so that we can give other countries credit facilities? I know that according to our views, this money which we continue borrowing from other countries and other institutions, we are putting our country into problems. This will affect our future generations. They will inherit a country which is wholly or badly indebted, yet they have nothing to do with these credit facilities.

My main worry with these credit facilities is that, this country China which is always giving us assistance, the minister should explain to us so that we understand. We have had some projects which were undertaken by China. I have two objections to these credits given to us by China. Most of the projects that were undertaken in friendship between Zimbabwe and China are sub-standard. I can mention a few of these projects which we may come across regarding these projects which have been implemented by China. I can mention and write these projects down. You know the problem at the National Sports Stadium. It is one of the projects which was badly implemented by China.

The problem that I have with China is that, when the Chinese are coming to a country to implement their projects, they bring all the implements and everything such as the tools including even the dogs. Mr. Speaker Sir, I think when they come into the country, they should also include some local content, when they are implementing these projects. I am referring especially to building projects. They should involve the locals.

The other question I have is that, we have had people all over the country, talking about the poor projects implemented by the Chinese.

Therefore, as representatives of the people, we are echoing what our constituents are saying. Before we answer these questions, other things also arise. A good example is that people are saying, they are supposed to be benefitting from the diamonds, but nothing is coming to help them -[HON. MEMBERS: Inaudible interjections]-

MR. SPEAKER: Order, order.

MR. HOLDER: Thank you Mr. Speaker Sir. I just want to raise a point of order. I think the hon. member is out of order. We are talking about electricity, but he is now introducing the diamond factor which is not consistent with the debate under discussion. -HON. MEMBERS: Hear, hear]-

*MR. SPEAKER: Order, order. The questions which are being asked by Hon. Chamisa are directed at the credit facilities which are extended to Zimbabwe, which also include this current debate which is the motion we are debating, therefore it is not out of order.

*MR. CHAMISA: Thank you Mr. Speaker Sir. I thank you for your ruling. I am through with my question and my conclusion is directed to the Minister of Finance. In most cases where we take such huge credits, I would advise that the people who are in our industries, who are our workers must also be allowed to make their contributions. The people who are also in different areas who are going to be beneficiaries, especially these workers; we need to hear their voices and what their contributions are when we are talking of credit facilities because these credit facilities are also eroding their incomes. We therefore need to get their contributions.

*MR. SPEAKER: Hon. Chamisa, you said you were concluding your speech.

*MR. CHAMISA: Yes, Mr. Speaker, I was about to conclude my speech but I have had some interference. My conclusion is, when we borrow such amounts, let us bear in mind whether we are not creating problems for the future. You find that future generations will find themselves in financial problems because of these credits and we may never be able to get ourselves out of these problems. There is a saying that says, 'once beaten twice shy' and again we also say, 'fore warned is fore armed'. As members of this august House, we need to make our contributions fruitfully for the benefit of the nation. I thank you.

*MR. MUKWENA: I have come to make my contributions regarding this motion which has been raised by the Minister of Finance and Economic Development. This is a noble and grand idea which is in support of the ZIM ASSET Financial Project. I also thank His Excellency for the Look East theme; this has opened up flood gates for prosperity of Zimbabwe.

Let me dwell on the motion by the Minister. This is ZIM ASSET in two senses, which means we will start with implementing ZIM ASSET.

Hon minister, we thank you very much for this noble idea. Whenever we are borrowing money to generate electricity, that is what we call development. The basis of any development is electricity and we urge that next time, let us go and launch the Batoka Electricity Project. Therefore, Hon. minister, we kindly ask you to share ideas with your fellow members in the Cabinet and the Executive so that 2014 is going to be declared a year of intelligence in Zimbabwe through such projects and generation of electricity.

When we have electricity, we know that even in our country, we are going to benefit because we have not benefited fully from projects such as the REA Projects, especially in chiefs homes, clinics or schools because there is no electricity. We look forward to benefiting from the loan which we are taking because there is going to be lots of electricity to be generated and we need to go for assistance from our friends in the East so that we create, build and construct bridges, roads and dams for irrigation schemes so that the country develops.

Hon. minister, feel free to get loans and credits so that the country develops. I look at some projects that are in Beitbridge; we now have a toll gate and this is development because people are doing all their businesses and the country is developing. They are benefiting because of the loan which was taken to construct a developmental project. Hon. minister, we support you fully and thank you Mr. Speaker, for affording me this opportunity.

MR. MUCHENJE: Thank you Mr. Speaker, I have risen to support the motion moved by the Hon. Minister of Finance. May I say that this is the noblest announcement ever made by any Minister of Finance for the past five years. I would also want to grab this opportunity to thank His Excellency, the President of Zimbabwe, for his visionary, calculative and prophetic Look East policy which has seen real friends coming to our rescue at a time when we are under sanctions.

As long as we are under sanctions, borrowing becomes a necessary evil. I thank you.

*MS. TSOMONDO: Thank you Mr. Speaker, for affording me this opportunity to make my contribution. Mr. Speaker, I would like to thank my fellow Members of Parliament for their contributions. I have heard Hon. Chamisa, in his contribution in which he was saying we must not borrow from other countries, I would wish advise Hon. Chamisa to read some papers so that he consult widely. He will find that his friends who imposed sanctions on Zimbabwe, the Americans are also borrowing money from China and yet they say we should not borrow from China. He is saying, the Chinese are bringing all the materials they are using but they are different from the British who bring nothing, yet come and take everything from us. When the British came into this country, they brought obscenities and other things which are anti-African culture.

My advice to Hon Chamisa, Mr. Speaker Sir, is that there is no country which can carry out developmental projects without getting financial assistance from its friends. I thank you.

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (MR. CHINAMASA): Mr. Speaker Sir, I want to thank all the hon. members who have contributed in this very robust debate. The bottom line to the contributions is that I have 99.5% approval. The only exception was Hon. Chamisa, though he started by supporting and then went on to reject the loan.

Hon. Speaker, this is an issue I will be singing as a chorus for as long as and until the energy deficit gap is filled. We have a huge deficit in energy. We are years behind and we have to catch up. There is a

correlationship between availability, cost of energy and economic growth. If we do not get our energy supplies right, we should not expect, in all fairness any meaningful economic growth. So, this is a foundation that we have to put in place and I am very pleased that in laying this foundation, I have the support of both sides of the House.

Hon. Biti, thank you for supporting and giving credit where credit is due. I do recall of course that when you were my predecessor, you never gave me credit for introducing the multi-currency regime. The principle is right that we should give credit where it is due and when I did not get it, I never complained though I knew that the credit was mine.

Hon. Zindi and Hon. Chimene, thank you for the support. Hon. Kereke, I will make sure that we guard against the dangers that you have spelt out. We should have value for money. We are borrowing this amount so that it can go into the construction and give us additional power. We will make sure that it reaches and serves the purpose for which we secured the loan. We will definitely guard against the danger.

What I think you need to know is that in this particular case, the equipment is coming from Kariba North, a company that was constructing for the Zambian Government. At the moment, they are already in possession of the construction site and are in the process of moving this equipment from Kariba North across the dam wall to our site. So, there is no new equipment that is being bought and this has helped to reduce the cost of this project.

Hon. Marumahoko, thank you for the support. Hon. Maridadi thank you for the support and the point you made is very valid. As we add additional generating power, we need to put into place and upgrade the transmission lines or the national grid. That is already being taken care of, even in the projects that we are going to put in place such as the Batoka and Hwange Seven and Eight. When they generate power, the existing infrastructure is not adequate to carry that power. So, it is very clear that we also have to invest in the transmission lines.

Hon. Mackenzie, thank you for the point you made about ensuring that there is local employment. We will bring this to the attention of the contractor so they ensure that local Karibeans are engaged in the construction of the project.

Hon. Madzimure, thank you for the point you made about the need for project reviewing and monitoring. That precisely is what the Portfolio Committee on Energy is there for. They can ask for progress reports at any time and I hope that they will be seized with this responsibility. I think you came late after I had given my statement because you then went on to ask about details of the loan which I had already given. However, for your sake, for the benefit of the House and for those who may not have been here when I made my initial statement, the details are as follows:

The loan amount is US$319.5 million. The total contract amount is US$355 million. Zimbabwe Power Company is expected to pay 10% of the contract price in the sum of US$35.5 million. The interest rate is 2% per annum, management fees is 0.25% on undrawn down loan amount. This fee of 0.25% is a once off charge on the loan amount. In other words, this is to hasten expeditious implementation of the project. If the money sits with China-Exim bank and it is not being utilised, we mount a lot of interest by way of management fees. So, it is very important that basically the amount is drawn down expeditiously.

Commitment fee is 0.25% and repayment period is 20 years including a grace period of 5 years. The projected implementation period for this project is 3 years.

Coming to the contribution by Hon. Chinotimba, he gave a mouth watering contribution. We are definitely not going to support corruption which is leading to the destruction of Zimbabwe. We need to work together and nip corruption in the bud before it destroys the country. Thank you for the advice that whenever we talk of corruption, we should direct our criticism to the particular individual or the families involved in corruption.

On the issue of Mr. Mangoma, I have no knowledge about the issue but I am sure it is Hon. Mangoma. I have nothing to do with that. That is up to you because I am sure you have evidence to support the allegation.

Thank you very much Hon. Chamisa for moving out of this august House because I was going to look down upon you because of the disturbing issues that you raised. It is a pity you do not understand the meaning of credits. I really feel ashamed because I held you in high esteem. What you should know is that no country can develop using its own resources, it has to borrow from other countries. In our day to day living especially in our own homes, we also have credits.

For example, Kariba Dam was constructed through credits from the Word Bank. All the development that you see in the construction of our dams, are funds extended to us as credit facilities from the World Bank. The most important thing is that when you are getting a credit, you should borrow money for developmental projects because if you use borrowed money on leisure and social things, you will find that it will be difficult to pay back that money. You need to get money on credit for developmental purposes. I am also looking forward to borrow more funds for the development of Zimbabwe and what we want to develop in Zimbabwe is the energy sector. What I am looking forward to are loans with a repayment interest of 2%. I will sign and consult with you after I have signed.

Hon. Tsomondo seems to have introduced a new issue which is a response to Hon. Chamisa. She stated that not only is Zimbabwe borrowing from other countries but countries as great as United States also borrow money from China. We also go there with our begging bowl together and ask for monies as loans. China is the biggest creditor of United States of America and when it is borrowing, it does not borrow in a piece meal fashion like what we are doing. They borrow trillions of dollars. The only difference we have with United States is that when USA is borrowing, it is borrowing for consumption purposes to support their budget, but in our case, we are borrowing money to embark on developmental projects and these will be a benefit to future generations. That is a noble cause.

I know that Hon. Chamisa is a graduate from the university and I hold you in high esteem. I know that you are a lecturer but your understanding of loan facilities has brought shame on my intelligence. Surely, what you have portrayed in this august House is not what I expected of you. You need to think twice whenever you make contributions in this House. I held you in high esteem. You are an intellectual. Remember, sometime back I used to say you belong to the wrong party. You are supposed to be in ZANU PF because you are more intelligent than most hon. members on the other side. What I will do is that I am going to give you a lecture on credits.

There is no country in this world which can embark on developmental projects using its own funds without borrowing from other countries. As individuals, we also borrow money for different uses in our day to day living and that is allowed. I want to make Hon. Chamisa understand that Zimbabwe is not the only country which borrows money from China. We have lots of countries such as United States which borrows money from China to pay salaries to its workers. As Zimbabwe, we are borrowing money for the development of the country and for the benefit of our future generation.

Let me turn to the issue of diamonds which Hon. Chamisa raised. The Minister of Mines and Mining Development stated that he is going to look into the operations of each and every diamond mining company and he is supposed to submit a report which will explain their operations regarding diamond mining in this country. Firstly, we will look at a particular company and we want to know how many diamonds have been taken from the country and secondly how much they have been sold for. We need to know that as a country.

What we want to do is to cut down on these other companies and identify a company which will work in conjunction with the Government so that we do not have these small companies working on our diamonds. This will take time. It is not an event but a process. I am sure I have enlightened you on the need for the country to borrow from other countries so that we can carry out our developmental projects.

I want to thank Hon. Mukwena and Hon. Muchenje for supporting this motion. I want to say this - sanctions or no sanctions, we would have been borrowing. Let us be very clear about that. To do investments into power generation, is heavy and no country can basically mobilise those resources from its own resources. Very few countries can. Even the more developed countries would be borrowing from the World Bank.

The point that I am making is that, the investments into power and water are heavy and we cannot lift ourselves by our own bootstraps. We have to make these things happen now so that we can grow our economy. Hon. Tsomondo thank you once again for enlightening this House that United States is the biggest borrower from China. With these few remarks, I thank you all for supporting this agreement and I move that the motion be adopted.

Motion put and adopted.

MOTION

FINANCE BILL: BUDGET DEBATE

Second order read: Adjourned debate on motion that leave be granted to bring in the Finance Bill.

Question again proposed.

MR. BITI: Mr. Speaker Sir, it is an honour and privilege to join the debate on the 2014 national budget pursuant to the contributions of the Chairpersons of committees that commenced on Tuesday.

The Budget Speech and the Budget itself is an important tool for national planning; it is an important tool for providing economic direction that the country will be pursuing and the economic agenda that the country will be pursuing.

There is no question, Mr. Speaker Sir, that our country is mired in crisis. There is a huge crisis of expectation that the hon. minister himself, captured in his own Statement by acknowledging that budget bids against the Consolidated Revenue Fund were in excess of US$8 billion and the budget itself is US$4.2 billion. Out there, our people expect the Government to do virtually and literally everything. There is expectation around energy, the state of roads, schools and agriculture. As we speak, there are 2.3 million people that have to be fed in Zimbabwe. So the crisis of expectation is huge.

There is a crisis of confidence in this economy Mr. Speaker Sir. The lack of belief that those in control have got solutions and can chart

a path forward to addressing the fundamental problems that are affecting this country. Mr. Speaker Sir, you only need to look at the number of retrenchments that are taking place in the country; an average of 300 retrenchments per week. You only need to look at our revenue figures, and I will speak on those a little bit later on. You only need to look at our ballooning balance of payment crisis, both in the capital and current account. All those things are reflective of the crisis of confidence that is affecting this country.

I would also like to submit, Mr. Speaker Sir, that we are also mired with a crisis of leadership. When a country is mired with the kind of political, social and economic problems that are afflicting our country it is important for the country to provide leadership. You read headlines that, a million children are not going to school and yet the voice of Government is conspicuous by its…- [HON. MEMBERS: Inaudible interjections]-

MR. SPEAKER: Order, order. There is a difference between heckling and shouting. You are allowed to heckle in terms of Standing Orders. The debate shall be open to every hon. member. So, if you can listen carefully and then submit yourself in response to whatever might have been raised by whom so ever has spoken before you. If we can respect that sense of decorum, I think we will make some leap forward in analysing the budget for the sake of the nation.

MR. BITI: Thank you Mr. Speaker. Given the coalition of these crisis that I have referred to; the crisis of legitimacy, expectation of confidence and leadership, the 2014 budget then takes a sui generis role in providing clear direction of how the country should move.

Mr. Speaker Sir, I want to underpin and define what I can say are the structural binds that our country is facing in respect of which leadership ought to have been provided by this budget. There is no question that the number one structural bind that the country is facing is the absence of capital; to put it simply, the absence of money. This country requires capital in the form of foreign direct investment, overseas development assistance and domestic revenue in order to finance the budget itself. That is self evident Mr. Speaker. I am aware of the budget constraints that our country is facing. We require resources.

The second thing that is binding our country behind capital is the structural bind of de-industrialisation. Our country is deindustrialising at an accelerated pace. If you go to cities like Bulawayo, Gweru and Mutare, places like Msasa, Southerton; the whole of Zimbabwe the industrial sector has become ghost towns and ghost industries. The fact that 84% of our working people are now in the informal economy is a reflection of this massive de-industrialisation that is arresting our country. With great respect to the Hon. Minister of Finance and Economic Development, we cannot celebrate the birth of what he described as a new economy. We cannot celebrate the return to the existence of artisanal subsistence industry which occurred before the industrial revolution. We cannot celebrate that.

The third structural bind is the issue of production. The country is not producing. If you go to our supermarkets, they are laden with imported goods. If you look at our current account, the fact that we now have a ratio of imports to exports of 4:1 is a reflection of the absence of production. We are simply not producing and we are simply not exporting. We have become a large supermarket economy for economies such as South Africa. So, it is a structural bind which we have to deal with.

The fourth structural bind which we have to address is the structural bind of decayed infrastructure. We spoke in this august House a few minutes ago about the issue of electricity and energy. As I said before, we are producing between 900MW to 1 200MW. We are in a permanent state of black outs. What is required right now is 4 000MW and in the next 10 years, is 6 000MW. The total cost of dealing with the energy deficit alone is around US$6 billion.

We have the challenge of roads. The total road network of Zimbabwe is around 88 000km of road. Of that, only 15% is paved. Even that which is paved is deteriorating. If you drive, for instance, along the road from the Gokwe- Empress road, you avoid the paved surface. It is actually better to drive in the bush than on the paved surface. So, this is the state of roads.

If you look at the state of our dams, even in a good rainy season, the country loses 75% of its natural rain to the Indian Ocean. Therefore, it is imperative to construct as many dams as possible around the country. The total cost of addressing the infrastructural deficit alone is around US$12.5 billion and I refer, Mir. Speaker Sir, to the report and the study that was carried out by the African Development Bank on the state of our infrastructure in 2010. We have to build and deal with the question of infrastructure.

The fifth bind which we have, Mr. Speaker Sir, is the bind of poverty in our country. The fact that 34 years after independence the per- capita income of our citizens is US$370. The fact that we still have a dual enclave economy where more than 70% of our people are living in the rural areas where there is no electricity, decent housing and water is a reflection -[HON. MEMBERS: Inaudible interjections]- Hon. Speaker Sir, this country cannot move unless and until we address the issue of the dual enclave economy. We have to liquidate the divide between the rural and the urban.

The fifth bind or rather the 6th bind which we are facing Hon. Speaker Sir, is the bind of the national debt. The budget puts the national debt at US$6, 6 billion, but if you look closely at the figures in the budget, there is a total ignorance of amounts that are owed to parastatals and amounts that are owed to other non-governmental bodies.

There is also a total discounting of interest on this debt. Therefore the correct figure of sovereign debt that Zimbabwe is facing is a figure of US$10, 1 billion and if the Government does the legal thing vis-à-vis the Reserve Bank debt, you are adding another US$1, 5 billion to the national debt. That means the total debt that we are talking about can easily be US$12 billion.

Now, the thing with debt Hon. Speaker is that, it is a development issue as long as we have got the US$2 billion arrears that we have with the World Bank, the US$500 million arrears that we have with the African Bank, the US$3 billion arrears that we have with the Paris Club Debtors; we cannot borrow cheap money, we cannot receive the grants that are available at the World Bank and the African Development Bank. I am pleased Hon. Speaker, that the Minister accepts that we cannot deal with the issue of the infrastructure unless we are able to access the huge seas of money that are on the international financial institutions. So, we have to deal with the question of debt.

Now, Hon. Speaker, all these are issues that require solutions. All these are issues that require leadership and at the conclusion of my statement, I will come to the solutions that the country should be pursuing.

MR. SPEAKER: Order, Hon. Minister.

MR. BITI: Mr. Speaker, I am going to suggest solutions at the conclusion of my speech but let me come to the specifities of the 2014 budget. Mr. Speaker Sir …

MR. SPEAKER: Order, order, that corner there, Hon. Dr. Labode, your own is presenting can you give him an ear please.

MR. BITI: Mr. Speaker Sir, let me come to the merits of the 2014 budget. I want to say Hon. Speaker Sir, that no budget can be crafted in a vacuum. A budget must be crafted on the basis of a developmental path that the country will be pursuing. In the past four and a half years; on the basis of either the Medium Term Plan or the Short Term Emergency Recovery Programme, which documents have adopted for Zimbabwe the development plan of a modern developmental state; all the budgets were anchored on the agenda and vision of a developmental state; modern, democratic developmental state.

Now, one of the things that hits you Hon. Speaker, when you read this budget, is the absence of the concept of that ideological footing that supports and underpins this budget. What developmental path are we pursuing? The budget has no philosophical or ideological underpinning. What developmental path are we pursuing? If you look at China, which my learned friend, the Hon. Minister spoke of, in 1980, President Ye Jianyingadopted a developmental plan for China that was export oriented. That was labour intensive and the net result of that is that China now is the second largest economy in the world. Now, the lacuna in this budget is that absence of that ideological underpinning. What ideological agenda are we pursuing?

There is a statement in the budget that the underpinning agenda of the budget is ZIM ASSET - [HON. MEMBERS: Yes, yes]. Hon. Speaker Sir, I took the pains of carefully reading, carefully analysing and carefully absorbing ZIM ASSET. Other than the ideological anchor of sanctions, ZIM ASSET is absolutely bankrupt and it offers no vision and it has no direction of moving the country forward and with great respect Hon. Speaker Sir, I know that it was crafted outside Government. So, Government bureaucrats should not plead guilty to the sins of ZIM ASSET.

There is no trajectory of where we want to be in 2018 and how we are going to arrive there from the document that is called ZIM ASSET. No wonder why Mr. Speaker, when you look at this budget, you actually find out that there is a cursory reference to ZIM ASSET. You only find it in the cover, "Towards an empowered society and a growing economy". This is taken from ZIM ASSET but on the content of the document, there is absolutely no reference to ZIM-ASSET and you do not blame the Minister or the technocrats at the Ministry of Finance because there is nothing that can offer direction to people from ZIM-ASSET.

The second thing that I would like to talk about, about the budget is that, you can only describe it and I hope my learned friend the Hon. Minister is familiar with R. L. Stevenson who wrote a story about Dr. Jekyll and Mr. Hide. Dr. Jeckyll and Mr. Hide were two people in one person; the good and the bad. So, when you read this budget, you actually find correct theoretical understanding of the challenges that are facing this country. That is the good and that is the Mr. Hide of it but when you go to the solutions, it is almost as if - [HON. MEMBERS: Inaudible interjections] - HON. Speaker Sir, this country cannot move unless and until we address the issue of the dual enclave economy.

It is almost as if the persons who defined the problems are different or they come from another planet to the person who prescribed the solution - [HON. MEMBERS: Hear, hear.] - so you see this Dr. Hyde and Jekyll that you see the technocrats correctly identifying the problems and then the politicians or rather the ZANUnisation of the budget - [HON MEMBERS: Inaudible interjections]- and just to give one example Mr. Speaker Sir; the budget correctly identifies that the country needs foreign direct investment. The budget correctly identifies that and it correctly identifies that the US$320 million of FDI that the country got in 2013 is not good enough. So, you cannot fault that reasoning but the presentation of the budget for 30 minutes, we were entertained by the antics of indigenisation which is totally opposite to the agenda of attracting foreign direct investment in this country. So, Mr. Speaker, you see this Mr. Jekyll and Hyde Syndrome in the budget, I can give you an example. But Mr. Speaker Sir, the starting point of a budget is that it must be a credible document, the budget itself must be a credible Budget, it must be a credible document. To measure, there is one thing in the budget which you cannot afford to politicise, because that is done by experts and that Hon. Speaker Sir, is your macro-economic frame work. What is going to be the growth trajectory of the country? The credibility, the legitimacy of any budget depends on the credibility and legitimacy of the macro-economic framework. Chinonzi bhajeti Mr. Speaker Sir, is the macro-economic framework which is the predictions, the forecast that the budget is making and the assumptions that the budget is making. Now, this is a budget Mr. Speaker, that makes assumptions that for the year 2014 the growth rate is going to be 6.1 %. This is the forecast that the budget is making.

MR. SPEAKER: Your time is running out.

MR. BITI: Thank you Hon Speaker. I will move fast. The macro-economic framework in this budget projects and forecasts 6.1% but if you look at the macro-economic fundamentals as defined in the budget itself, they do not sustain a projected growth rate of 6.1%. It is not possible. You will start with the underpinning factor of mineral growth, commodity growth. The budget itself accepts that in 2014, there is going to be depressed demand and prices for our commodities; gold platinum and so forth and you know Hon. Speaker, that 35 % of GDP is now coming from commodities. Now, if the commodities themselves the mining sector is going to grow by less than 2%, how do you sustain a macro-economic projection that is worth 6.1%? There is no serious economics Hon. Speaker Sir.

The World Bank projects that our economy will grow by 4.2% in 2014. Mr. Speaker Sir, if you look at the assumptions of the 6.1%, the assumptions are the following; timely and full implementation of the measures proposed in the ZIM ASSET programme - [MR. MATANGIRA: Inaudible interjection]-

MR. SPEAKER: Order, order! Hon. Matangira, can you please stop leading that chorus? Thank you.

MR. BITI: Hon. Speaker Sir, the budget makes important statements about the problems and challenges that are facing this country and it provides important figures. When you juxtapose those important statements and figures against the forecast and projection of 6.1%, the 6.1% is hanging. It is not supported by the macro-economic fundamentals. When you look at the assumptions that are in paragraph 3.31 and I hope Hon. Chinamasa you are listening. There is no, Mr. Speaker, you cannot do, you cannot forecast and define budget assumptions without dealing with …

MR. SPEAKER: Order! Order! Will the hon. member holding the floor address the Chair and not the Hon. Minister responsible? Thank you.

MR. BITI: Mr. Speaker Sir, the most important assumption, one of the most important assumptions that should have been taken into account at page 94 of the budget is the question of energy. Is Zimbabwe going to produce even one thousand two hundred mega watt of energy in 2014?

[TIME LIMIT]

MR. SPEAKER: Order! hon. member's time has expired.

MR. GONESE: ThankMr. Speaker Sir, I move that the hon. member's time be extended. [HON. MEMBERS: We object.]

MR. SPEAKER: Order, t he hon. member will carry on - [HON. MEMBERS: Hear, hear] - Order! Hon. member you can take your seat. The Speaker forgot his Bible of Standing Orders, when there is an obvious objection the hon. member cannot carry on -[HON. MEMBERS: Hear. hear. ]-

MR. KEREKE: Thank you Mr. Speaker Sir. I rise to …

*MR. MUNENGAMI: On a point of order Mr. Speaker. When we were attending the post-budget seminar, you explained hon. Speaker that we must critically analyse the budget so that we should not have any blinkers. You also explained that we should be united as a House - [HON. MEMBERS: Inaudible interjections] -

MR. SPEAKER: The House is guided by Standing Orders. Hon. members must remember that we are guided by our own Standing Orders. I want to refer you to Standing Order No. 58. On the limitation of speech, it says clearly, "when the Speaker is in the Chair, members shall not exceed 35 minutes in speaking." -[HON. CHIBAYA: Inaudible interjections]- Hon. Chibaya do you want me to order you out of the House - [HON. MEMBERS: Inaudible interjections] -

I was saying Subsection (a) of Standing Order No. 58 advises us as follows: When the Speaker is in the Chair, members shall not exceed 35 minutes in speaking to any question before the House, except in the case of a Vice President, ministers and members in charge of Bills or motions, who shall not be restricted in regards to the length of time they may speak in moving the Second or Third reading of a Bill or in reply to the debate there on or in moving a motion and in reply to the debate there on. Provided that on motion moved at the expiration of the time limit, the member may be permitted to speak in excess of 30 minutes for not more than 10 minutes. Such motion which no notice shall be required, shall be decided forthwith without amendment or debate and shall not be deemed to be affirmed unless the House unanimously concurs. The House did not unanimously concur. That is why I did not ask Hon. Biti to proceed for the next 10 minutes because the House had not unanimously concurred. That is the situation, if we could respect our own Orders and be guided accordingly.

MR. KEREKE: Thank you Mr. Speaker Sir. I want to applaud Hon. Biti for his contributions on the budget. I also want to, first congratulate the Minister of Finance for successfully presenting what we would say, an eclectic national budget. Eclectic in the sense that if you have to walk a rope with both your hands tied at the back, one of your leg injured or impaired and you devise mechanisms that will enable you to walk that rope, you are a practical eclectic person. Therefore, we want to say, the 2014 budget is an eclectic policy instrument given the circumstances of our country. At the present moment, the resources the country is able to generate are far short than what we would require.

Hon. Biti articulated and I do agree with him that our infrastructure alone, will require in the range of $5 to $6 billion. That is about an accurate estimate. At the present moment, even if you tax companies and individuals a 100%, we will not be able to raise $10 billion because of the level of economic activity. The instrument of the budget simply says, those in charge of the Treasury compute and calculates how much tax revenue you will get and out of that pot, come up with spending policies and policy changes in the affairs of the Treasury to keep the country going. That is precisely what the budget has done given the pot of resources that are there.

We need to look at the following key sectors and I will start with the financial sector. The budget is proposing to introduce a lender of last resort function for the Central Bank, which means, where currently banks are not free to lend to one another heading mostly to our own indigenous banks failure to survive the current liquidity crunch. The victim is the economy but the budget is proposing a solution. I want to advise the hon. minister that it has been a long time before this economy saw a lender of last resort. Even if you put the money tomorrow, there is no guarantee that there is capacity to use it.

Therefore, we recommend training programmes and we need to speak openly. Hon. members would need to be trained to be able to read and interpret what is going on. We need our banks to be trained; we have dealers and treasurers who, for a long time have not strike a Treasury deal in the economy. There has not been any Treasury bills issued.

Hon. Biti, through you Mr. Speaker Sir, was at the helm of Treasury for the country when there were no Treasury Bills issued to activate the Money Market. The point I am making, Mr. Speaker Sir, is that let us appreciate the modesty eclectic efforts that have been put in place. Let us then make sure that our own markets are ready so that the instrument yields the desired objectives.

Still on the banking sector, we would want to promote financial sector stability through fair distribution of deposits of public funds within the market. There are tendencies where the Treasury, for one reason or another, may prefer a particular institution. You will find that Treasury deposits are at a particular institution. You look at NSSA, my favourite, deposits are at a particular institution. The net result is that most of these very useful indigenous banks are paralysed out of operation, yet there are Treasury funds which must be distributed in the market as a deliberate market stabilisation tool.

How does Government place its deposits in the market? If Government places and quarantines its deposits in one corner, then the virtues of public funds are not being realised in the market. We would want a policy where Government deposits circulate in the market. It will create financial sector stability.

Hon. Biti, Mr. Speaker Sir, talked about the import - export imbalance. That is a very critical point. The budget did present this as a challenge, an unsustainable challenge where exports are in the range of plus or minus $4 billion imports which means us as Zimbabwe spending to other countries around $8 billion. If it was a human being, the rate of losing weight would be to be left with the bone; where what you are getting in, is coming in multiples of two, to a rate of four. What you are getting out, it could be blood you are donating and could be double, $8 billion. That picture alone must be corrected even before we finish the first quarter of 2014.

How do you correct it? Firstly, there is a considerable effort now in Government to demystify diamond revenues and for good reasons, it is the people of Zimbabwe who are saying diamonds are a natural resource, our resource is being dug from the bellies of our land and so, let us be accountable. Let us see the money on the table. Let us get the money to work. So, Government is putting in place policies which I think will enable reasonable revenue to be realised out of diamonds and net-worthy is the focus of value addition.

If one compares in quantity terms, as well as quality terms, the volume of diamonds being produced by some of our neighbours, for instance, Botswana. You look at Zimbabwe, we are talking of 11 - 12 million carats. I am not saying kilogrammes. Carats mean you are already speaking the language of quality. Yes, 11 - 12 million carats. Half of that, if carefully valued should get us to no less than $10 - 15 billion. We are being short-changed at the marketing level.

How are our diamonds being marketed? There is a coterie of dealers and middle persons, who present themselves to such juristic institutions like the MMCZ. They get issued with licences. You ask which office they are operating from, they just carry themselves. They buy diamonds at say $30 per carat. The same unit will be sold at no less than a $1 000. This is reality. The focus now buy Government to say, let us value add locally our diamonds, is a very noble one. That gap between $4 billion exports and $8 billion imports, if we carefully work around how to unlock value of that which it is, we are going to produce as estimated by the Hon. Minister of Finance that 11 - 12 million carats. If efforts are put to ensure properly value added and the marketing is fair, we would be out of the woods just by looking at that.

Secondly, Mr. Speaker Sir, the shortfall on our balance of payments, there was earlier debate on the extent to which Zimbabwe can borrow. I want to say because of the resources we have, there is ample reasonable ground that we secure long-term loans for 10, 15 or 20 year loans, whose terms enable us to fix our short-term challenges. Correct our energy, infrastructure and retool our industry, we are then able to repay those loans.

The challenge we have with Zimbabwe is that, the word order when it comes to Zimbabwe, they speak with a forked tongue. I am referring to the International Monetary Fund (IMF), the World Bank, to name but a few. The American Government almost came to a standstill in October last year; they are the ones who print US$. The IMF is headquartered in Washington DC in 8th Street and there is a tunnel which links the IMF to the World Bank. They never spoke a vowel when they were in Zimbabwe to explain to us how it is a fact that a purported global leader, in the name of USA goes broke and the IMF and the World Bank are there. They are mute and they do not comment.

Zimbabwe, along with all the other members of the IMF got funding, $520 million in 2009 which was really free money. I am speaking here in ballpark terms. The funding was for us to stabilise our financial systems. To show the cruelty and the double standards of the IMF, at that stage, Zimbabwe owed IMF a US$140 million.

They took that money in its entirety, from the pocket of Zimbabwe and staged it into some separate account which they called an Escrow account. Instead of paying back the loan so that Zimbabwe could be seen as having fulfilled its obligations, in order words, no arrears with the IMF. They do not want that language to apply on Zimbabwe; yet, the money equivalent to pay off the loan has been staged and parked right next to the loan account. Hon. Biti confirms that it is still there.

We encourage and plead with the hon. minister to please trigger the full settlement. It is a policy paper which needs to be put. The effect is as follows: It will put America in a very awkward position. On the one hand, they have got ZIDERA which says, Zimbabwe must not be supported. Any director must not support any policy move to support Zimbabwe. If Zimbabwe is fully paid, there is absolutely nothing in the Charter of the IMF, which stops us from getting cheap loans. There is nothing even if you read from start to finish, of the IMF Charter. The reason Mr. Speaker Sir, is that we are being ill treated. It is because we allow ourselves to be abused, to some extent.

Hon. Biti spoke of the Paris Club. As long as you are foul with the IMF, it is very difficult to secure loans from a group of donors or from a group of lenders. Their lending is usually preferred because it carries certain developmental ground components. It is cheap money. It is long term in nature to the extent that we are still seen as irregular with the IMF. Hon. Biti knows it. He was our Hon. Minister of Finance. You cannot approach the Paris Club. The moment you are square with the IMF, even the World Bank, they begin to be soft with you.

So there is need for Zimbabwe to make it its case. There is no legal instrument which would stop the legitimate Government of Zimbabwe, to say that money in our Escrow, please apply it to pay off our loans. It will put America in a very embarrassing situation. Mr. Speaker Sir, the budget looked at capacitating our industry. We want to say, as a country, we need to live with certain realities. If back in the days, we used to use an ox-drawn plough, and you have a 50 hectare plot, you need to change from that ox-drawn plough to a more rigorous piece of equipment. Our industries need a structural shift in terms of the technologies that we are using. It is very discouraged in this modern day, to hide behind import duties, as a way of sustaining our industries. It does not work.

You cannot put make-up to cover certain topographical issues on the face. Our industries must know that China has moved to a point where it costs a dollar to make five T-shirts. Yet, here, we want the producer to be selling a T-shirt for US$20. The world has become so porous that isolating ourselves through artificial borders of duties; it will not save our purpose for two reasons. We are signatories to the SADC Protocols which committed Zimbabwe to progressive reduction of duty. We celebrated as a country. We are ardent members of SADC, and various other global trading pacts. To then cry and say, let us raise duties to protect our own kith and kin, I want to propose Mr. Speaker Sir, that within the confines of our very limited fiscal space, an exposure trip be done.

A few of our industry captains should go and see how far and fast the world has moved in terms of production. Go in the printing business. It used to be huge printing stations that employ 200 people. If you go to our own Government Printers, there are now modern machines. The work which used to be done by 20 people, you need only three operators to do double the work at a fraction of the cost. So on industry, we need a different formula and not protectionism because it will be so short-term for our industries.

I want to wind up by saying, the budget that has been presented, presents an opportunity, and Hon. Biti mentioned of what he saw as the disconnect, between ZIM ASSET and macro-economic framework. I think it is a matter of opinions. -[HON. MEMBERS: Hear, hear]- ZIM ASSET is a document which speaks, to my constituency in Bikita, when they are at the shade there, under the baobab tree, they can clearly relate to ZIM ASSET. -[HON. MEMBERS: Hear, hear]- Mr. Speaker Sir, what we need is the actual policy responses at the implementation level. So what Government has done is that it has put the broad policy framework. You are the electorate, you elected Government into place. These are the deliverables.

The duty now is for the Executive and the Legislature, to see to it that the commitment that the Executive have made, they are being followed through, to realise the fruits that are defined in ZIM ASSET. If you put Mr. Speaker Sir, being a farmer, you can plan to have so many hectares of tobacco, soya-beans and sunflowers in your head. You can also put it on paper, that if you do not fumigate, not just fumigating, but on time, using the right chemicals, with the right attitudes by those that are fumigating, because they may concentrate there on the crops. You will not realise the objectives. ZIM ASSET is such a crisp, precise, simple and a basic document which we must implement. There were some echoes at that time when it was being crafted, it is the people who were giving input, much the same way as the Constitution came from the people. I want to thank you Mr. Speaker.

*MR. CHINOTIMBA: My point of order Sir, is that I am asking that the member's time be extended.

*MR. SPEAKER: Order, order. Hon. Chinotimba, you guessed wrongly, his time has not expired yet; he still has five minutes more.

DR. KEREKE: Thank you Mr. Speaker, I want to conclude my contribution Mr. Speaker Sir, by urging line ministries, that for the budget to achieve the objectives as set and articulated by the hon. minister we need to review the implementation, where things are going off the rails, we correct in good time. To the Treasury and to the hon. minister, a regular handicap which is often imposed on ministries is where beautiful sums of money are in the Blue Book as to the allocations, in reality you get some of it, the first installment coming as late as November. Meanwhile, the Ministry was supposed to have been delivered, and the Treasury can do its best to ensure that funds as allocated to Ministries and departments come in good time so that the arms of Government can implement the various objectives. I thank you Mr. Speaker Sir.

MR. MASHAKADA: Thank you Mr. Speaker Sir, I want to start by thanking all Chairpersons of all Portfolio Committees who contributed to this debate and also thank Dr Kereke and Hon. Biti for already highlighting some of the key issues contained in the budget. Mr. Speaker, through you, I want to engage the Minister of Finance and try to objectively look at the budget and its structure and be able to proffer some solutions and suggestions, time permitting.

My first comment, Mr. Speaker Sir, is that from the onset, this budget is very difficult to implement. - [HON MEMBERS: Inaudible interjections] - it is not Hon Chinamasa's fault; it is a technical issue that I want to hold. This budget is very difficult to consummate, precisely because of all the binds that Hon. Biti mentioned there is one serious critical bind which is the lack of fiscus space, that is the critical bind and I think it was made from all the presentations by Committee Chairpersons.

They mourned that not enough was allocated to their portfolios, this is a point that I am putting across - there is limited space, room to maneuver. If you look at the budget - I am now looking at the budget framework, the budget provides for revenues of US$4 billion which is 29.3% of GDP against bids of US$8.9 billion. You can already see that the expectations in the nation far exceed what the revenue can hold or can accommodate. Now, out of US$4 billion revenue projections, total recurrent expenditure is going to chew US$3.6 billion. Out of the US$3.6 billion, US$3 billion will go towards employment costs.

In the Minister's words that will only leave and I quote 'US$92 million to do all other things, operations, capital projects and all other obligations. You can see that we are not necessarily looking at US$4 billion; we are actually looking at US$492 million. This is the bind I was referring to but you do not need a rocket scientist to see that the Minister has no room to maneuver, his hands are tied because the revenue base is very low.

Hon. Speaker, in the budget, the Minister has also smuggled supplementary estimates for 2013. My recommendation is that it will be neater to present the supplementary estimates on their own so that Parliament can be able to scrutinise them item by item rather than run them in the budget statement. If you look at the revenue heads, the performance of the revenue heads, you find that indirect taxes or VAT are dominating. This tells you that this economy is not producing, we are depending on consumption expenditure, and hence we have to rely on VAT as source of our revenue.

Mr. Speaker Sir, the other issue that has been raised in the budget which is of great concern and has got severe implications on service delivery are the payment arrears to service providers to the tune of US$97.1 million. It means Government is not able to pay service providers and this will dislocate the economy because everyone is owed money by Government. The Minister will have to try hard to make sure that these payment arrears to the tune of US$97.1 million are settled

Mr. Speaker Sir, this is where the role of development assistance comes in. I have talked about the limited space of internal revenue generation. In the minister's budget, you will note that in 2013, development partners assisted Zimbabwe to the tune of US$161.6 million. The World Bank alone assisted the health sector to the tune of US$15 million and these figures are as authenticated by the Minister of Finance. UNICEF assisted Government to the tune of US$435 million through the Health Transition Fund and US$54 million through the Education Transition Fund. My point is that we must continue to work and engage with these development partners so that we can augment our budgetary resources rather than chastise them.

For us to improve our revenue base there is need to look at FDI. Hon. Biti has already highlighted that US$320 million is a drop in the ocean. We need to up our investment promotion game so that we can attract FDI in the region of US$1 billion to US$1.5 billion to boost our domestic resources. Most importantly, we need to address the supply side so that we have got production through supporting agriculture, mining and the manufacturing sector. This will enable us to grow the cake from the current US$14 billion to US$50 billion, US$70 billion or US$100 billion so that our taxable income or revenue base can also increase. I am emphasing the point that the Minister will really have to juggle around the funds to meet all the competing needs because the fiscal space is quite limited.

On the macro-economic framework, which is very important as highlighted by Hon. Biti, the budget projects a 6.1% growth rate alongside an inflation rate of 1.5%. The question to be asked is, what are going to be the drivers in the economy to achieve a 6.1% growth? That is the essence of the macro-economic framework.

I will start with agriculture. It is often thought that agriculture is going to be the trajectory through which the 6.1% growth rate is going to be achieved. In fact the statement says, "agriculture is going to grow from -3% to 9%. How realistic is this projection? Under agriculture, you must realise that the rainy season came rather too late. Secondly, the inputs have not been availed to agriculture, especially A2 farmers. I do acknowledge the US$161 million that you availed to agriculture. However, I think my interpretation is that the US$161 million will just go towards improving subsistence farming in our country because it constitutes packages like 10kg seed, 10kg AN and 10kg compound D. That will not solve the trouble in the agricultural sector of food security but will go more towards achieving subsistence needs.

If you look at the agriculture sub sectors, apart from tobacco I do not see any other crops that can catapult this growth rate to achieve 6.1%. We are already importing maize. Cotton is not doing well because of the cotton merchants who are not giving favourable prices. The wheat crop is being affected by energy and water supply. Soya bean is nothing to talk much about. So, apart from tobacco driving this economy, I doubt whether we can achieve the 9% projected growth rate in agriculture, which would have a booming effect on the 6.1% overall growth rate.

On mining, if you look at the Stock Exchange, you will see that the mining indices have been bearish, especially after July. Mining needs heavy capital to kick-start production. Where we are coming from, the period 2009 to date was a period where mines were reopening and trying to adjust because they had closed in 2008. Therefore, to think that mining is going to be the centre to catapult the 6.1% growth is being too optimistic.

On manufacturing, Dr. Kereke has already alluded to the limitations of the manufacturing sector. All in all, I think we must moderate the growth forecast of 6.1%. It could be on a more optimistic or exaggerated side.

On balance of payments, in his statement the hon. minister said something to the effect that we must not be worried about the trade deficit or current account deficit because the money that is funding our imports is coming from smuggled gold and diaspora remittances. This is not true. The reality is that Government is importing food, fuel and electricity and this has nothing to do with smuggled gold or remittances. Companies are importing raw materials and machinery and that also has nothing to do with remittances and smuggled gold as bolded in the statement.

Individuals are importing vehicles, luxury goods and trinkets. So, we must treat this current account deficit as a real deficit and not pretend it does not exist. If you look at the figures of imports, the ratio of US$8.3 billion compared to US$3-US$4 billion exports, this imbalance is quite worrying. The current account deficit now stands at 30% of GDP and if you add external debt to that, it means that our commitments are very massive. In fact, if you look at the metrics of our debt as a percentage of revenue, it now stands at 173%, which is acknowledged in the budget. As a percentage, of exports it stands at 149%, which means that all the export revenue that we will get will have to service our debt and we should add an extra 49% on top. This is not sustainable.

There are some measures in the budget which the minister addressed. He talked about the need for fiscal discipline in the parastatal sector and I think this should be emphasised. You saw in today's paper the salaries of Chief Executive Officers of PSMAS. So, the thrust of fiscal discipline is very important.

He also talked about public procurement and the need to publicise high tenders. That focus is very important. He also talked about bank charges and interest rates but I am disappointed that on bank charges and interest rates, nothing has been done and no measures have been put in place to make sure that banks lend to the agricultural sector at affordable rates to make sure that banks appetite for higher financial charges are moderated. It is an area which you need to relook at to make sure that banks play ball.

The Budget Statement was very significant in the sense that the minister said that the Budget Statement was coming hard on the heels of the 31st July 2013 elections and therefore to me, the budget should be the instrument to judge the implementation of ZIM ASSET. What was the budget supposed to do? It was supposed to address the confidence issues that Hon. Biti raised. Some of the confidence building measures are as follows:

i. Indigenisation and economic empowerment policy,

ii. Multiple currency regime,

iii. Energy and food crisis

To what extent did the Budget Statement address confidence issues bedeviling the economy? It is an acid test for the budget. Yes, the minister got it correct on the maintenance of multiple currency regime but this is weighed down by indigenisation. Your pronouncement on indigenisation weighed down all the confidence measures that you wanted to address. It is very simple, the debate is not about indigenisation or not. That is not the debate. The debate is at what level and at what stage do you want to indigenise. You cannot get an investor coming to surrender 51% in this day and age -[HON BITI: It does not happen.]- We have to agree because the investor would have borrowed this money. You cannot borrow money to lose 51%.

If I were the Minister of Finance, -[AN HON MEMBER: Hausi futi.] - I would reduce the threshold so that you can attract investors. China, which we are celebrating as the second largest economy, had to backtrack on indigenisation. For them to be where they are, they had to make a strategic move to bring investment first, promote exports, encourage inflow of capital so that they could modernise the economy. If they had insisted on 51%, China would be not where it is. At this juncture, we have to make a strategic retreat to make sure that investment flows into the country.

For your own information, China had to allow Singapore and Taiwan to come in to build industries and create employment. In fact, there is one town in China which was built by Singapore. A whole town which was built and run by Singapore for 30 years. After 30 years, that town was surrendered to the Chinese authorities. That is how you get investment coming into your country.

If you look at the budget you ask yourself, what are the measures that have been pronounced to stimulate the economy? Is this budget providing economic stimulus or not? At this present moment, we need economic stimulus. We need to kick start production and the supply sector of the economy. There is little evidence to show for that.

The Minister of Finance and Economic Development himself was very clear on page 97 of the budget. I want to refer you to page 97 of the budget where he identifies the down risks that might trap the success of the budget.

i. He says this budget is going to fail because of poor rainfall.

ii. This budget is going to fail because of employment pressures. It is him admitting.

iii. This budget is going to fail because of low FDIs.

iv. Little progress on debt resolution will also slow the implementation of this budget.

v. Most importantly, he admits that lack of clarity on key policies particularly indigenisation and economic empowerment is going to be the waterloo of this budget.

vi. He also says the slow recovery of the global economy is going to affect the implementation of the budget.

These down risk factors need to be addressed and have not been addressed in this budget. For that reason, this budget remains a pie in the sky because the money is not there. Ministries are going to be allocated fewer resources and it goes on and on.

The challenge in this country is to address revenue generation. How do we grow the economy? How do we grow the cake so that we expand our revenue base? Is the natural resource dividend on its own without investment able to push us to fund our day to day needs. Is VAT going to be the panacea to all our revenue needs? I say we need to augment our local revenue generating capacities with FDI, overseas development assistance and therefore there is no option but to reengage the international community to ameliorate our revenue circumstances.

 

MR. MUSANHI : Whilst I agree with some of the speakers that have spoken before me in relation to the budget that was presented by the Minister of Finance, we do not want to make the same mistake that was made by the former Minister of Finance when he was in the office. We do not want to appear as if things are normal in Zimbabwe whilst our economy is being strained by sanctions that are impeding progress in this country. -[HON. MEMBERS: Inaudible interjections]- I insist, I insist and I insist.

THE TEMPORARY SPEAKER: Order please. Let us hear the hon. member in silence please.

MR. MUSANHI: Mr. Speaker Sir, we are not in a global world where we cannot protect our industry. The race in the sand has to start from the same spot. If someone starts running in the sand whilst others are still stagnant, you are not going to catch up with those who have started running before you.

Mr. Speaker Sir, our industry is crippled by a lot of impediments that will make it not progress and if it is not protected, there will be no industry hence why the former Minister of Finance has destroyed the industry. In about five years, we had no industry to talk about because he opened all the borders for competition when he knows very well that others are tied up and others were already running. So, Mr. Speaker Sir, I do not want to mislead our new Minister of Finance and Economic Planning and tell him to say that do not protect the industry. The industry has to be protected if we have to have the future of our industry.

Mr. Speaker Sir, the present industry has to be mechanised in order to be more productive whilst it is being protected. I want to understand that our new Minister of Finance and Economic Planning has put up a budget which is well presented and we must support it. In conclusion, I would like to urge those people who think that things are normal in Zimbabwe yet they are not normal. We have to work hard as Zimbabweans so that we progress. -[HON: MEMBERS: Inaudible interjections]-

THE TEMPORARY SPEAKER: Order, order please. Hon. members, we are hon. members, so let us behave like hon. members. I do not want to be forced to ask one of you to go out, please.

MR. BHEBHE: Thank you Mr. Speaker. Before I start debating this budget, I have a message from my constituency. As you are all aware, for four years Nkayi Constituency did not have a representative in this House in the last Parliament. The message that I have from the constituency is to thank those that sympathise with the situation that prevailed then, in particular from both Houses. There are those that are friends of Nkayi from ZANU PF, thank you very much and not to mention those from my party, the message from the constituency is, 'thank you very much'.

The second message is to ask this hon. House to closely look into the constitutional provisions that resulted in what happened in the last Parliament, which is the abuse of power by individuals from within political parties. So, we need to look into that so that we do not have a situation where a part of this country is not represented in this hon. House.

Mr. Speaker, going into the budget…

MR. CHAPFIKA: On a point of order Mr. Speaker. Hon. Bhebhe is out of topic. We are here to debate a very important issue which is to do with the survival of the economy of Zimbabwe within a very limited time. So, for him to bring to the fore the challenges within the various formations of the MDC, be it MDC-N, MDC-O, MDC-Z or what, is inappropriate and out of order Mr. Speaker Sir. I thank you.

THE TEMPORARY SPEAKER: Order please. The point of order is taken. Hon. Bhebhe, although I sympathise with your situation, please stick to the debate. Thank you.

MR. BHEBHE: Thank you Mr. Speaker. Mr. Speaker, I will go straight into the budget. I will zero-in to the mining sector because according to the Minister of Finance and Economic Planning, he alluded to the fact that mining is going to be one of the major drivers of this economy. He goes on to highlight the economic challenges that might be a hindrance to that endeavour.

I will just pick on three of the challenges that I believe are a serious challenge, in particular to the mining sector. The first challenge is the issue of the high premium risk of this country. The second one is the low investor confidence that we have in this country and the third one is the lack of accountability and transparency in the exploration of minerals in this country. Those are going to be the impediments that might make us not achieve what the Minister of Finance has projected as the 11.4 percent growth in that sector.

Mr. Speaker Sir, from a business point of view, when you are budgeting, there is need for one to come up with key result areas, of which according to the Minister of Finance again, within that sector, he mentioned seven key result areas. I would like to go through each and every one of them and highlight the challenges that might force the Minister of Finance to revise the projected growth in that sector from 11 percent most probably to a minus figure.

First and foremost, the first one is the issue of health and safety in that sector. As a country, on that key result area, we have done fairly well except the issue of seriously dealing with the issue of HIV and Aids within that sector.

Mr. Speaker Sir, the second one that he highlighted was the issue of monitoring and surveillance of the mining activities. The biggest challenge that will affect this budget in terms of that key result area is the lack of transparency and accountability. I would want to explain that when it comes to monitoring and surveillance, it is often that those same people that are charged with monitoring or surveillance on that sector are the same people that are involved in corruption in that industry. As long as we do not bring about professionalism in monitoring the exploration of those resources, I do not foresee us achieving the target growth that the Minister has spoken about.

The third key result area that the Minister of Finance spoke about was the issue of sustainable mining in the country. Mr. Speaker Sir, there is no way you can speak about sustainable mining when you are so broke; the way this country is broke. When there is no transparency first of all in the issuance of the licences and claims. The issuance of licences and claims, first and foremost, it is politicised and is not professional. As long as the status quo remains, I do not see us having the zeal of achieving sustainable mining.

The fourth key result area that the speaker spoke about is the marketing of the mineral products. Mr. Speaker Sir, I would want to make reference to the diamond mining taking place in Marange. The minister, in his budget presentation, puts it clear that eleven million carats of diamonds was extracted from Marange. What is surprising is, out of that eleven million carats, we did not see anything being remitted to Government. The biggest question is that if you knew that it was eleven million carats that ware produced in Marange, what follow-up was done to ensure that Government gets the revenue that it is supposed to be getting from that sector.

He further projected that in 2014, we are expecting twelve million carats from Marange. The biggest question is that, if Government failed to put measures to prevent the corrupt deals and tendencies that were taking place there, what new measures has he put to protect the twelve million projected carats from Marange?

The fifth key result area that the hon. Minister of Finance spoke about is the indigenisation of the mining sector. Mr. Speaker Sir, whilst we all agree that as indigenous people of Zimbabwe, we need to participate in our own economy. The truth of the matter is as indigenous people, at the moment we do not have the capacity to extract those minerals at value sell so that we get the revenues that we so require in this country.

Again, because there is lack of transparency when it comes to the issue of indigenisation - the issue of indigenisation cuts across political lines but when it comes to the implementation of that policy, you will find that those that are charged with the implementation are involved in corrupt dealings and kickbacks. How then do we expect ourselves to benefit or to see a prosperous indigenisation? That again will hinder the anticipated growth that is expected from that sector.

The sixth key result area is the issue of promotion of the mining investment. When we invited officials from the Ministry of Mines and Energy, in particular that department had actually bidded more than US$7 million for that sector because that pertains to the key result area. Out of the US$7 million that they had bidded for; they were not allocated even a cent. The biggest question is how do you then expect to promote or market our mining investment.

Mr. Speaker, Sir, the seventh one is the audit of all claims in the country. Mr. Speaker, that breaks the logic of why we should be talking about auditing of those mining claims now. If you send a child to school for 33 years, with the same teacher, same headmaster, same school, same textbooks and that child does not pass, the question is do you just continue sending your kid to the same school without making any change?

My worry is there are only five mining commission offices in this country and two which are manned by deputy mining commissioners to make them seven. Surely, it does not take this Government to realise that the hive of corruption is taking place in these offices. So, for the minister to expect to have any improvement in terms of issuance of mining licences from those offices when they are still manned by the same commissioners and the same deputy commissioners, then we expect a change. I have all the respect for the newly appointed minister. I do not know how he is going to exorcise the demon that is in those mining commission offices.

I want to summarise the issue of the seven key result areas that I have just spoken about. In terms of professionalism, those appointed, if there is a political will, let there be proper supervision, accountability and transparency with the issuance of the mining certificates. I want to go the other challenges that the Minister of Finance highlighted, which is the issue of illegal sanctions which are causing the economic meltdown. Let us assume those sanctions are the ones that are a cause of the economic meltdown that is prevailing in the country. The question I want to pose to the Minister of Finance is, you projected a GDP growth of 6.1% but those sanctions are still there. How then do you expect a growth of 6.1% when you have not dealt with those sanctions? How do you achieve the GDP of 6.1% when the sanctions are still prevailing? You have not put measures to stop them.

Mr. Speaker, the Minister of Finance went on to say Zimbabwe offers an excellent investment climate. The Minister of Finance represents a part that has been in power for 33 years that had opportunities of correcting all these other ills for 33 years. Unfortunately, I do not see where the Minister of Finance is coming up with conditions that he is talking about which are excellent in Zimbabwe that we could not take advantage of from the 33 years that he has been in power.

Mr. Speaker, one of the reasons he is going to use to reach the projected percentage that he talks about is the issue of indigenisation….

THE TEMPORARY SPEAKER: Order, order, you are left with five minutes.

MR. BHEBHE: Mr. Speaker, I will round up. The indigenisation policy that we are advocating in this country is of 51% locally and 49% foreign. The million dollar question here is, where you get an investor that is going to provide an investment that is 100% capital, 100% equipment, and 100% commitment to be a minority shareholder. What I know for a fact, Mr. Speaker, we have spoken about the look East Policy, the Look East Policy has actually corrupted the diamond industry of this country. Unless if we are saying the very people from the East, the wise Chinese from the East are prepared to meet the 100% commitment to be a junior partner in any business. I have never seen that happening anywhere in the world.

What I know is, Chinese are very clever, right now the Minister of Finance was presenting a loan from China. I want to demonstrate how Chinese are clever, they gave you money, because they are clever, they followed their money and took the contract. This means that Zimbabweans are not benefiting anything out of that contract. 350 mega watts will not make any much difference and for us to believe that people that borrow us money and follow it are the same people who will turn around this economy; it is a joke Mr. Speaker...

(Time Limit)

MR. MAHLANGU: I move that the hon. member's time be extended.

AN HON MBEMBER: I object.

MR. SPEAKER: Order, order hon. members

*MS MANGWENDE: First of all, I would want to thank our Minister of Finance, Hon. Chinamasa. I would want to comment on what was said by Hon. Biti that ZIM ASSET was ZANUnised. The fact is ZANU PF is the Government, so you cannot separate it from its Government. For us who came in this House recently, we want to correct all that went wrong during Hon. Biti's era. Sanctions have been there for over 10 years now, so we are working out things so that they move smoothly in this country.-[AN HON MEMBER: Did you come in recently?]- Rome was not built in a day. When Hon. Biti was the Minister of Finance, he was talking of Binya road, Tokwe Mkorsi dam, but still he did nothing on all these areas. The problem is sanctions. Thank you Mr. Speaker.

MR. CHIMANIKIRE: Thank you Mr. Speaker. Mr. Speaker Sir, first and foremost, I would like to thank the various Chairpersons who chair various Committees for their reports. Indeed their reports were reflective of resourced product of cooperation between the two major parties that are here in Parliament - [AN HON. MEMBER: Major!]- Mr. Speaker Sir, it is important that sometimes we listen to each other. We may be of different parties but sometimes munhu anoudzwa nebenzi agoteerera agobudirira. So I would like to acknowledge that among two or three things we may raise, one or two things may be very important for the progress that we so seek in this country. I believe that, while we may be two different major parties, what we are trying to achieve is one thing. We would like to see Zimbabwe developed. If we are not careful, we will sink back to the same status quo that we were in the last Parliaments where we will make a lot of noise and very little progress.

Mr. Speaker, I believe that the basic goal of a budget in any economy is to achieve stabilisation of that economy and also put safety nets for the poor and the marginalised in order to address the issue of the reduction of poverty. Mr. Speaker, I believe that the budget as it was presented, its aim was to restore social sectors which include health and education systems, aimed at development. In trying to achieve these objectives, I believe that, in the presentation, the issue of parastatals should be addressed.

I hope that the mid-term budget will address the issue of parastatals that are operating at losses, rendering them technically insolvent. I could give an example, but there is no need to give examples, we all know it. NetOne was the first mobile operator in this country, today it is the smallest in terms of services rendered to our public. Why? - [HON MEMBERS: Sanctions!] - Econet came in under the same environment, and today it is the biggest operator in this country. Ngatitereranei, there is no point of us shouting at each other, let us try and listen.

Mr. Speaker Sir, when we look at Air Zimbabwe, when we look at National Railways, there is need to privatise some of these parastatals in order for them to give services to the Zimbabwean public. Within the region, airlines have gone to joint ventures, even in South Africa. South African Airways is not wholly owned by South Africa, it has got joint ventures with companies that are operating in Germany, with companies that are operating in France. Why are we hanging on to our airline like a baby hugging the bottle that he feeds on? We need to legalise some of these things and allow private participation. Mr. Speaker Sir, this country among other things, there is need for us to engage in the establishment of a stabilisation fund. Chairperson after Chairperson representing each and every committee that presented their report here were talking about the Government giving money to this and that.

Mr. Speaker, the purpose of coming up with a business is in order to achieve profits. At one stage, I was wondering whether these Chairpersons who were reporting the issue of Government distributing money were actually talking about Government being an investor. Government is there to setup an infrastructure that should be followed so that an economy can be able to succeed and not to be engaged in business that is not the business of Government.

So, Mr. Speaker, I do sympathise with the Minister of Finance in some of the allocations that he made, they are not real because - [HON. MEMBERS: Inaudible interjections] - hear me through, we expect to conduct business and not to look towards Government to be sharing out tax payers money, that is not the business of Government.

In agriculture, Mr. Speaker, at one stage in this country we were a net exporter of our products and agriculture was the largest employer. There is need to return to those good old times when agriculture would be the biggest employer, when agriculture would be the net exporter of what they produced. There is need to have research on markets and on products that we should be exporting from agriculture in this country and there is need to grow the agro industry in this country.

We experienced and acknowledge that there are critical shortages in farming inputs. There is also the issue of poor water management, from the area where I come from, there are a lot of dams that are not being utilised for irrigation or otherwise - [HON. MEMBERS: Inaudible interjections] - kwangu ku Guruve nekuMvurwi uku.

When it comes to mining, the principles that are being advocated by the Ministry of Finance I think, the last speaker covered those areas. There is need to improve returns to the fiscus, eradicate corruption and bring benefits to the indigenous Zimbabweans but that area needs a lot of foreign direct investment and the story has already been told.

In manufacturing, currently manufacturing is characterised by serious failure to supply goods and services demanded by consumers in Zimbabwe. There is a drastic decline in industrial output and investment. I felt pained when I watched on television that we have a Chinese joint venture in this country that is preparing yarn for export to China when we are actually buying clothes that are being imported from China. Why can we not be making those clothes? If we are talking about indigenisation, why should we be exporting yarn when we are closing factories in Kadoma and Chegutu? I could not understand it. So, we should not speak with a forked tongue as Hon. Kereke was suggesting. On one end we are saying indigenisation but we are exporting raw cotton, zvinorevei izvozvo? I think, we should be able to say what we mean and do what we say.

The issue of reduced supplies of raw materials locally is an issue that I have just been raising. This has also resulted in the reduction of our skilled manpower in the various manufacturing industries that we have in this country. There is need to open up the industry to foreign direct investment as well, while cautiously indigenizing.

I listened to the Minister of Finance when we were in Victoria Falls and I was a very happy man on that day when I heard him say that there is need for us to revisit our indigenisation laws. It was a very sad day when he announced, when he was presenting his budget that indigenisation laws were not going to be revised. I believe that one day, in the next five years, the Minister of Finance will find it necessary to revisit indigenisation laws. I will not suggest figures today because I know you will be shouting and not listening but there is need, I am suggesting, a revisit to indigenisation laws in order to attract foreign direct investment for the betterment of this country.

On tourism, Mr. Speaker Sir, there is need for further investment in road infrastructure, rail infrastructure, airports, transport services, hotels and lodges and also in the training of personnel. We need new marketing strategies.

Those of us who may be lucky to be watching digital television see advertisements from Zambia, advertising the Victoria Falls; we see advertisements from South Africa, advertising our Victoria Falls but we do not see any Zimbabwean advertisements about our own Victoria Falls -[HON. MEMBERS: Inaudible interjections]- there is something wrong.

Mr. Speaker Sir, I am talking about DSTV which has a wider international audience. However, despite that lack of advertisement and marketing, our Minister of Tourism has won several prizes. I do not know what for because the minister is not even capable of marketing our country. We should be able to enhance our competitive capacity. We need to improve our regional tourism and indeed we need to improve our domestic tourism, thus whereby we can be able to afford to go on holidays I wonder how many Members of Parliament managed to go on holiday because we could not afford to pay for the lodges and so on and so forth, very few managed. - [HON. MEMBERS: Inaudible interjections]-

On bilateral agreements, Mr. Speaker, I would also want to suggest that there is need for us to maintain our bilateral agreements. Regional trade and cooperation is very important for a growing economy like ours.

I would like to conclude by referring to an issue which I think is very important, cross border trade with South Africa. I was listening to information this morning that says, there is an average of about 9 000 people who cross the border into South Africa from Zimbabwe. We should be looking at the issue of reducing the tariffs that we charge to local importers SMEs and so on and not increasing them. If we were to reduce them, this would also affect the prices that Zimbabweans pay for the products that are imported from across the border. We need to address the issue of a pro-poor budget as you had highlighted in your budget.

Finally, Mr. Speaker, the general industrial peace that is being enjoyed in this country should be reciprocated by employers offering generous salaries to their employees for 2014. I thank you Mr. Speaker.

MR. CHAKONA: Thank you very much Mr. Speaker. I would like to thank you for giving me this opportunity. I also want to thank those who presented their reports during the debate on this motion. I first of all want to remind members that our nation is led by a very capable leadership, a leadership that was elected by the people of Zimbabwe and is focused on its people. The people of Zimbabwe have bestowed their confidence on this Government through the harmonized elections of 31st July, 2013.

I think that the budget that was presented had a number of solutions to the economic challenges that our nation is facing. It also had measurable milestones, specifically the GDP and issues to do with mining, agriculture, tourism and so on. I heard previous speakers speaking passionately about the problems that this nation is facing. They spoke so eloquently about what the nation is going through, but they did not speak eloquently about the solutions. That is the problem.

The issues to do with infrastructure, I heard Members of Parliament who stay in an urban centre speaking about infrastructural decay in rural areas. How did they see it? How did they hear about it? Our roads are under rehabilitation at the moment. We have seen motorised graders being deployed in almost every district and they are doing a sterling job. In my own constituency, I would like to thank the Minister of Transport and Infrastructual Development for doing something that I can see, something that we can see and we can experience.

We have also seen in urban centres potholes being filled with the pothole filling machine that was bought by this Government and that is working in our favour. We have also seen a number of initiatives to augment electricity shortages in this country and there are tenders being floated. Those are all measures to correct the situation that is in this country. I am therefore encouraged by this budget and encouraged by the initiatives that this new Government, led by ZANU PF is doing.

There is talk about developmental planning and yet there is ZIM ASSET which is there. It has got measurable milestones and objectives that we can see because it has numbers associated with every sector and that developmental plan that we have in the name of ZIM ASSET is basically, the plan that the Minister of Finance and Economic Development has used to come up with this budget. So, the issue of planning has been catered for and we are very encouraged by the minister.

I think there is also another problem that we do not understand. When the issue of sanctions is talked about in this House, some people disagree but we all know that we cannot access money from multilaterals because of sanctions. There is talk about encouraging people to bring foreign direct investments and yet that is impossible in the presence of sanctions.

Mr. Speaker, I would like to tell you that I was interviewed by a journalist who works for a radio station in the UK and I was very surprised that most of the people who interviewed me on that radio station were Zimbabweans stationed in the diaspora. I was so surprised about their negative attitude towards their own country, negative attitude towards their own nation and I was really disturbed by that. They kept on saying, we cannot bring investors because there is corruption in the country including political issues, yet, my hon. members are talking about foreign direct investment when there are people who are out there preventing people from coming into this country to invest.

I am also very discouraged, Mr. Speaker, because when I visited different countries in the region and when I read their newspapers, I could never tell whether a Member of Parliament quoted in the paper was from the opposition or the ruling party. In Zimbabwe, you can easily tell that this is a member of the opposition by the way they will oppose anything to do with this Government and anything that comes out of Government.

Mr. Speaker, the only way we can correct the situation in this country is when we can speak with one voice, one objective and when we can zero in on certain goals as a nation. For as long as we fragment ourselves and oppose anything to do with this nation, we will never get anywhere. Mr. Speaker, hon. members know the impact of this budget to their own lives and the constituencies they come from, yet they are opposing the same budget. They are expecting the Minister of Finance and Economic Development to perform miracles in this particular august House and produce money and direct foreign investors. Where is he going to get them unless we otherwise do the right things and attract those people to come to our nation? Our nation is surrounded by people who do not love it. Our nation has got hon. Members of Parliament who do not love their own country.

Mr. Speaker, I heard those who were speaking passionately about the de-industrialisation of this nation but just a few years ago, there was the DEMUF, if I am not mistaken, which was put in place to address the same de-industrialisation that is taking place in those towns they are talking about. The very same speakers are the ones who did not release the money to address the de-industrialisation. This Government has only been around for the past four or so months and they expect it to perform miracles that they could not perform in five years. It is also important to note that the very speakers were in charge of industry, commerce and finance and they failed to address the very same problems that they are expecting us to resolve in four months.

Mr. Speaker, when I was listening and also read the budget speech, the minister came up with a number of solutions and the first one was obviously on value addition. Instead of us zeroing on industry which has been eloquently described by my predecessors, we see another dimension in terms of industrialising our nation; that of value addition. If we could emphasise on that, we would actually create more jobs, industries and all that is in ZIM ASSET.

We also see in the budget, the issue of supporting agriculture, whereby. Inputs have been distributed to most of the areas in agro-based districts. As we speak right now, there is a very good crop out there and my dear comrades are here sitting. They do not know what is out there because of this Government.

So, I would therefore like to thank the minister for a job well done under difficult circumstances to make sure that there is food security in this nation. What more would you want? Let us pass this budget.

Mr. Speaker, there is also talk about tourism. We need to do something to make sure that we get more receipts from tourism. But how are our tourists going to come if we speak negatively about this nation and about the same budget that is going to bring in tourists to this nation. So, those are the areas I just want to touch on. I do not want to repeat what the other honourable members have said but I think the budget has done tremendous work in addressing the very areas and sectors of our economy that are critical to make sure that we drive this country to another level.

Mr. Speaker, I want to thank you. The minister spoke about the re-birth of this economy because for five years, this economy was never birthed. The predecessors failed to give birth to an economy. I therefore want to thank you Mr. Speaker, for this opportunity.

MS. MPARIWA: Thank you Mr. Speaker. Let me begin by thanking those who have spoken before me to debate on the 2014 budget I also wish to inform the House that I do not need to belabour on points that I think my colleagues have adequately covered.

Mr. Speaker Sir, if you go to the statement made by the Minister of Finance in December, paragraph 933 to 940, those paragraphs are to deal with labour. It must also be understood that labour is not a commodity and therefore, it has aspirations. It is different from machinery and is different from any other object because they have got life. Workers have got expectations Mr. Speaker, and as such, they need to be promoted and protected by the Government; the very Government that has actually put the budget in this Parliament.

Paragraph 933 speaks about the reform of the labour laws Mr. Speaker, where the minister is proposing to introduce labour market flexibility through the Minister of Labour and Social Welfare and I actually believe that, to interpret the labour market flexibility, the proposal is that, employers will be given the right to hire and fire willy-nilly. They would be given the right to sub-contract workers and they would be given a right to outsource, even labour that can be availed by workers in Zimbabwe, for example, the debate around Chinese bringing their own labour in Zimbabwe. Is that the Zimbabwe that we want? A Zimbabwe with an unemployment rate hovering around over 80% and 84% of the employees in the informal sector? Mr. Speaker, I do not think any normal Zimbabwean and any Member of Parliament in this House would appreciate to have such kind of a scenario in the country.

Therefore, we need to collectively think and talk about those who cannot represent themselves, the voice of the voiceless - [HON. MEMBER: Shinga mushandi shinga!]- Therefore, negotiated flexibility is the way to go. The way to go Mr. Speaker, it takes two to tango. There has to be social dialogue of the two parties and that is the employer and the employees. Be it Government, business or labour because in the arrangement of the private sector, we have the tripartite negotiating forum where you have three parties; the Government, business and labour but in some cases, at enterprise level, you will simply have the Employment Council dialoguing with the employees in a particular sector. That route Mr. Speaker, will not leave a gap because when people have negotiated, they have agreed themselves to actually engage in flexible labour with conditions of service because one gap that labour market inflexibility introduces is insecurity in terms of the workers -[DR. GUMBO: Is that hon. member talking budget issues?]-

MS. MPARIWA: I am coming there Hon. Gumbo, just give me time. A worker cannot plan because you do not know your future tomorrow. Is that the Zimbabwe we want? Because when you are talking about unemployment, you are talking about employment creation in this particular document I believe that Mr. Speaker, we should not kick out John so that we save Mary. We should not have employees that are new all the time. We need permanency at the work place. We need social dialogue. Social dialogue, if engaged properly with the workers, the employers, Government and business, which for example, the Government Mr. Speaker …

THE TEMPORARY SPEAKER: Order, order please. Hon. Mpariwa, I had allowed you to talk about other issues you should not continue giving us stories outside the budget subject. Get to the point please, get to the actual debate.

MS. MPARIWA: Thank you Mr. Speaker Sir. In the budget statement by the Hon. Minister Chinamasa, he did allude to what I am talking about. He did allude to the Employment Councils. He did allude to collective bargaining and as such, I think the statements that I am making actually are related to the budget.

Recently, we have heard instances where Government was engaging with its employees and when we talk about social dialogue, we really mean that they are issues to do with lives and money and are issues to do with the national fiscus. The reason why Government has given its employees US$54 instead of US$79 is a matter related to the budget, hence there is a gap in the budget of giving the employees adequate salaries. What is the way forward Mr. Speaker? I tend to wonder.

Mr. Speaker Sir, the right to assemble and the right to free collective bargaining leads to a stable employment and leads to a stable economic development by the workers so that they produce. The much needed production cannot be done and cannot be achieved if workers and business are not talking together. So, economic sense tells you that they are at an enterprise level and this is why I have mentioned that workers have got aspirations because they are the ones that produce in terms of getting the much needed fiscus.

Mr. Speaker, when you have engaged in social dialogue, that leads to a social contract which then can promote the productivity at shop floor level. Social contract, because it has been mentioned in the budget, actually legalises the decisions between the employer and the employee. When everybody else is satisfied that they can work together, there will be productivity because the much needed production that has been mentioned in the budget is part of what I am talking about. Mr. Speaker, social protection programs in the budget is for the vulnerable groups, namely the elders, orphans, child headed households, chronically ill and people with disabilities. These have been heavily under funded and we need not over emphasise.

You take a scheme for the vulnerable groups that I have mentioned, assisted medical orders which has been allocated 3 million out of 7.6 million that they requested and this is going towards just servicing the debt that they have with various institutions. So, therefore, the category that I have just mentioned at the top will remain vulnerable because if anyone has to fall sick, if anyone is hungry because out of the 2.3 million that are hungry, this category also belongs to the 2.3 million.

You talk of BEAM Mr. Speaker Sir, where we need our children to go to school and one million has been left out already, we do not know the school drops out that will happen during the season. I have been a Minister of Labour in the past Government. I know very well that most of these children will drop out because Government alone cannot resource this particular BEAM. With donors that have been paying US$20 million, US$15 million-UNICEF for example, DFID for example, we face a gloomy future for our children. The net effect is school drop outs and child labour, of which the children will be on various streets of our towns and locations in search of food and money so as to fend for the elderly because children that are in that position deserve a social safety net of the Government.

I believe that the minister has to think and relook at this particular vote which caters for the vulnerable and the poor. In fact Mr. Speaker, you will find that in the 2014 budget statement, there is nothing to celebrate for the workers. This budget is very much anti-workers, by actually trying to smuggle something that has been happening long ago which the Labour Act has tried itself to do away with, the minister is trying to smuggle it back. I believe that the working poor will remain poor and the gap between the rich and the poor will keep widening. I thank you.

*MR MATAMBANADZO: -[AN HON. MEMBER: Shuwa munhu akaenda giredhi two …]Thank you Mr. Speaker Sir, for the opportunity you have given me to debate in support of the budget done by our minister which indeed is a good Budget, but we see it being looked down upon by some hon. members from the opposition party. These members that are against this budget are looking down upon it because I liken them with pupils in a remedial class.

I was once a photographer at school at primary schools. There is a special class where those children are found. I am not surprised by the behaviour here because these hon. members are criticising this budget saying, there is little funding; funds allocated are very little. If we are to look at the former minister who also spoke in this House Hon. Biti, the former Minister of Finance, he had his budget, many budgests, but failed to give salary increases to the civil servants who had voted for them. Not even a single cent was allocated to them but this budget, seeks to do so, but they are disapproving it. The little that has been given has enabled the civil servants to applaud the increment that they have been given countrywide.

Minister, you did a good budget and in our language, they say, too many cooks spoil the soup. Minister, you have done very well and I am going to award you some marks. When the opposition came in the Inclusive Government, they had some of their people in parastatals who approved budget and got the money and sit on it for Government fail. Minister, I urge you to investigate and find out these people who were planted by the opposition in parastatals. They should be quickly investigated and removed so that the budget and this country can be successful.

Mr. Speaker Sir, when you see some of us in this august House, it is not all of us who are pro-development of this country. The opposition deny that there are sanctions in this august House but when you talk to them outside, they will tell you that they are in control of the sanctions and so, they are hitting you left, right and centre.

I am perturbed by the few people that are voting inside to come to this august House. I will make sure that all the people are aware and will not vote for you once they are aware that you are wicked and cruel because you do not want those people who voted for you to have a better living.

The previous speaker was talking about unemployment levels. How can they be employed when you boast and are proud that you have done a good job by imposing illegal sanctions in this country? How are these companies going to be opened? I know that there are many of you in Bulawayo. The City of Bulawayo which is your strong hold. Have you noticed that a lot of people are suffering because companies are not opening up? You know that you are friends with whites who have a lot of money…

MR. SPEAKER: Order! hon. member address yourself to the Chair and no one else.

MR. MATAMBANADZO: Thank you Mr. Speaker Sir, I thank you for your guidance.

MS. ANASTANCIA NDLOVU: Thank you Mr. Speaker Sir. The hon. member on my right and to your left said that the hon. member debating here is grade zero and that is unparliamentary. He must withdraw [HON MEMBERS: Inaudible interjections]

MR. SPEAKER: Order! Order. The hon. member concerned, withdraw your statement.

MS. L. SIBANDA: Thank you Mr. Speaker Sir. I withdraw my statement.

*MR. MATAMBANADZO: Mr. Speaker Sir, I am saying to our hon. members from ZANU PF, let us be united and assist in giving constructive ideas to this budget so that the budget can be progressive and the capabilities of the minister can be enhanced as he crafted this good budget. I urge all of us to be united in that regard.

We should not behave like Bulawayo companies. The President said, these companies should be opened but are we able to open these companies. Most of the companies in Bulawayo belong to the whites and these whites connived with the people in the opposition to close them. If we are not careful, these companies are not going to reopen. The whites closed these companies because they want the country to experience hardships. There is also mention of Americans having said that if Zimbabwean companies close, we will pay you whilst you are not producing up until the ZANU PF Government has been dislodged. These companies belong to the whites who are conniving with other people so that the Bulawayo populace can suffer hardships ot revolt against Government.

I strongly believe that with this budget, we will come up with ideas to enable Bulawayo companies to reopen as per the President's direction. When these companies are being reopened, we will come up with ideas that I cannot discuss here because these are thieves and they may steal them. They will come up with counter suggestions to this so that we cannot be successful.

On diaspora Mr. Speaker Sir, those outside the country went there because of the education they attained from 1980, from free education that they had from the President and ZANU PF. When the children went there, the opposition took advantage of the fact and started behaving as if they were the ones who had educated them and started manipulating them so that they cannot support this country whilst they are in the diaspora although they had acquired education from this country. Be that as it may, Mr. Speaker Sir, through the Minister of Finance, we have the brains and we will come up with a serious counter. The ones from the opposition should be very strong with their sanctions but we will counter them to show them that they are not intelligent. We are in a war situation and we return fire with fire.

At the moment Mr. Speaker Sir, I am saying the diaspora should bring in money without fail. We will talk to them nicely and we will not coerce them so that they can pour money into Zimbabwe. I was listening to the budget presentation by the Minister of Finance; there are 2.5 million people in the diaspora. If we take those who are well educated and those that are not educated, the average pay I calculated it and if we are to get $200 from each person, we get $500 million per month. If we were to get that amount per month we will get $6 billion a year. I will reiterate so that they can understand. I said there are people who are in the diaspora who are being estimated at 2.5 million.

MR. SPEAKER: Order, order. In terms of our Standing Orders, please do not repeat yourself.

*MR. MATAMBANADZO: Thank you Mr. Speaker Sir. The Chinese that are being made reference to in this august House and are being accused of bringing menial labour from China, that is incorrect. They bring their money into this country and come here as company directors. They want to supervise their projects because there are thieves that have been planted by opposition so that they would steal the money whenever the Chinese bring in their money. So, they bring in their intelligence inorder to safeguard their investments so that their money cannot be stolen by these people that have been planted.

When the British were ruling this country, when I was growing up, there were white police officers and even the headmasters were white. Was it not the workforce for the whites? What problem is there that the Chinese have come with their own force?

Mr. Speaker Sir, I conclude by saying, mention has been made here about the issue of clothes which are alleged to be coming from China and are not durable. When I look at Hon. Maridadi, he is wearing a suit from China. Mr. Speaker Sir, it is my plea that the clothes that are alleged to have come from China, these are the same clothes that people allege that we have a private company in South Africa. The South Africans are importing these suits from China. Cross border traders are going to South Africa and buy these suits for resale in Zimbabwe. They come and are a problem in here.

Mr. Speaker Sir, I ask that this budget that the minister has come up with be supported in this manner. We should take our clothes straight from China, once they land here, people will buy from the warehouse for resale and sell to these people - [Laughter]- This means our people, if you look at them, if you closely examine this through our Ministry of Finance and Economic Development - if you look at the entire country from one border to the other, Harare, Bulawayo as our biggest cities, how many people are in flea markets? How many people are leaving with $250 going to South Africa? That is why they are taking our country as their private company.

In conclusion, I came up with a project in my constituency which is going to look at that by opening up a warehouse so that my constituents can stop going to South Africa. They should spend their money within the constituency so that we can open up all the companies in Kwekwe Constituency.

MS. MATIBENGA: Thank you Mr. Speaker Sir for giving me this opportunity to add my voice to the motion before the House. I will not belabour the points that have already been aptly and adequately addressed by the previous speakers. I do not want to go into the introductory remarks in my observations around whether there is a relationship between ZIM ASSET and the budget statement or whether there is a possibility, even of them being distant cousins. I shall leave that and hold it in abeyance and go to specific issues.

I would like to talk about the women's issues as enunciated in this budget statement. It is quite lamentable that women's issues continue to be placed at the periphery. I say so Mr. Speaker, because you find women's issues on page 206 of a 262 page document. It says a lot Mr. Speaker Sir, because here we are talking about 52% of the population of this country. So, if issues relating to more than the population are relegated to the back burner, it is indeed a cause for concern.

I think I would not have made a big error if I concluded that women's issues continue to face the challenge of continuing to be addressed as a matter of lip-service and there are no commensurate enunciations that really address these issues. For example, paragraph 911 which talks about the establishment of community centres. The ministry put a bid of $300 000 for setting up community centres and when you look at the allocation, hon. minister did not allocate a single dime for these activities. I shall leave the women's issues at that level.

I would have failed in my duty, Mr. Speaker Sir, if I do not also add my voice on the labour issues that are raised in this budget, and to that effect, I am referring to the paragraphs alluded to by Hon. Mpariwa and that is from paragraphs 932 onwards. I notice with interest that now, we are speaking the language of the Bretton Woods where we want to sacrifice our own in preference to capital and I am really worried. Since when have we started speaking the language of the capitalists?

My colleague, Hon. Mpariwa, has already spoken about the issues of labour market flexibility and I just want to repeat that it would be the saddest day for the workers in this country if we are to go that route of labour market flexibility, tinenge tave kuchekeresa vana.

I also would like to refer to the budget statement on page 53 which has got a pie chart that refers to revenue heads performance. When I look at that pie chart, I notice that Pay As You Earn contributes 20% while the employers or corporates contribute 10%. I know some of us, where we come from, have tried to argue that it would be more prudent to tax corporates more than we tax the individual because a corporate is set up precisely and specifically to make profit, whereas an individual goes to work to try and look after their children and they are taxed more.

We have lost that debate according to the statement that I see in the budget. I want to zero in on why the Government is not seeing that by protecting the workers who contribute 20% of the revenue heads, we are actually putting our mouth where our money is. I plead with the minister to relook and reconsider that. This is the goose that lays the golden eggs, the workers through their Pay As You Earn.

Lastly, Mr. Speaker Sir, I also want to just make a comment on labour market flexibility. I would like to implore this House to disabuse itself from thinking that when you are talking about productivity, it is solely the duty of a worker. The hon. minister talks about lack of work ethics and things related to that. I would like to put it to this House that resources equal result. The issue of productivity is equally the responsibility of the employer as it is the responsibility of the employee.

If the workers are not equipped or in a factory that is not well-equipped, you can kiss goodbye to productivity. If there is labour unrest or no harmony at the workplace, you can kiss goodbye to productivity. Therefore, I go back to the issue raised by Hon. Mpariwa, the issue of the critical nature and the importance of a legislated social dialogue, be it tripartite at national level or bi-partite at the industrial level.

Mr. Speaker Sir, I would like to conclude by making a wish and a plea. I am hoping that the labour law reform that we are talking about will not be a labour reform that relegates the workers in this country to slavery. It will be a labour law reform that makes sure that, Government stays as a referee and a regulator that ensures a win win situation. I know that for sure, without referring to what has just recently happened with the civil servants. I know that through dialogue, people can accept an increase of one cent, but if you force it on them, there will always be labour unrest. So, Mr. Speaker Sir, allow me to thank you very much for giving me this opportunity. I can say to you that, we should never condemn our own people to slavery. The chorus of the capitalists, we should protect our people from exploitation by capital. I thank you Mr. Speaker.

*MR. MAPIKI: Firstly, I would like to thank Hon. Minister Chinamasa. It shows that you apply your mind and yet you are applying practical knowledge. Keep it up. If we were to talk about snakes, you are the type that swallows the other snakes from the tail to the head. It shows that you are now fusing your expertise. The problem that we faced, that when John was sent to baptise the people, I am talking about the ZIM ASSET. People were unaware that Jesus was coming. When you constructed the budget, you were basing it on the ZIM ASSET. People did not quickly accept it, but they were unaware that in Zimbabwe, we budget our things because of tools that are there.

When Cuba realised that it had no diesel because of sanctions, it introduced bicycles. But, that was the issue then in Cuba. When we told our colleagues that we have had the sanctions, people thought we were playing games. They are now being hurt by these sanctions. We are saying they must remain steadfast. That is why we are now saying that sanctions are evil. We applaud Hon. Minister Chinamasa. We looked at what he did in the industries. You will realise that the big companies in Zimbabwe were being led by whites. You exhausted your efforts on small to medium enterprises because they say that, if you want development, you start with your own people. We should not start with multi-national corporations.

When they stayed in stay away activities, we stayed at work not at home showing that we have our country at heart. You have put a considerable amount for small miners. About a million dollars is there. The small miners in our communal lands, I employ 80% of the workers and 70% of the gold that is being received at Fidelity Printers is coming from small miners. Shamva gold mine failed to produce 10% and deliver it to Fidelity Printers. We thank you Hon. Minister Chinamasa for your ideas. You are cutting our cloth according to our size. What you are being encouraged to look at is what Australia and America have said. We should not be doing that.

Look at the example of Angola. When they realised that Savimbi had called for sanctions, Angola took stock of its resources, oil and other sectors. We should also do the same. They then approached China because they had the resources that were valued at billions of dollars, and they requested for a small amount because that was backed by their resources. We should support Hon. Minister Chinamasa and we should support this budget. This is a war between the mouth, teeth and the tongue. They have problems in what should be said in the day, but when it comes to digesting food, they assist each other.

I should urge you boys that you should not run away from what is fundamental.

MR. MUTSEYAMI: I thank you Mr. Speaker Sir. I think it will be proper if the hon. member can address hon. members as hon. members. Zvevakomana wozozviita kumarara.

MR. SPEAKER: Can the hon. member withdraw the word boy?

MR. MAPIKI: Thank you Mr. Speaker. I withdraw. I was making reference to hon. members that you should be able to look and deal with issues that pertain to your own spirits because, foreigners cannot do that. They will do it wrongly. I realise that the budget that was crafted by Hon. Minister Chinamasa, was able to identify with the people as there are a lot of people that are in the communal lands, who are the beneficiaries of this budget more than the industrialists.

He talked about food security and nutrition that there should be promotion of small grains such as rapoko because they do not require a lot of fertilizer. You can be able to harvest them. If you have cassava, you can also come up with flour or mealie-meal out of that. I thank you for your expertise Hon. Minister Chinamasa and your intelligence. It has shown that we are an able people of this country. A lot of people can talk. They talk a lot of theories, hence our direction that we should have F2s, because it was practical. Now we have realised that the practical lessons that were learnt, are now taking this country to a better level of development.

Let us process drinks from tomatoes and sweet potatoes. Let us extract our sugar from the wild fruits mazhanje. Let us also use musau fruits for the production of beer. By so doing, we can show that we are now using our natural resources and putting our minds to it. Mr. Speaker Sir, once you have challenges, can you then say you want to change your birth certificate? You belong to that family and you will die a member of that family. Your spirits are of that family. If you are of the Museyamwa clan, you will not be blessed because you are of the Nyamuzihwa clan.

As the people of Zimbabwe, we should address our minds to the budget. I thank you Mr. Speaker because at the moment, I am proud that I am speaking about my birthright. A lot of people are suffering because of infrastructure. I was grateful about the road infrastructure because of graders. We should only budget money for diesel. We now have rigs so that what we need is the diesel for the drilling of boreholes and we can have irrigation. In the elections, we were saying the ball in the gate but now we are saying, money in the bag. The money can be in the bag if we apply our minds to it or if our minds are functioning properly. We are looking at the way things are done by Dr. Chombo's ministry because we said we have inadequate funds in the budget. We should look and see what we should do to enhance it. In Government departments, investigations are being made to find out what people are earning in local government. Those that escaped during the Inclusive Government have screws tightened on them and it shows that we are applying our minds to our own things.

Dr. Chombo's ministry have their own programme of infrastructure framework. People in councils are being asked to promote small to medium enterprises so that shops can be constructed which will be inexpensive. This requires little capital because it is in-tandem with what we intend to do and it is the reason why we say that sanctions are hurting our people. If people fail to accept that they are being hurt by sanctions, it causes problems. Sanctions are what we are referring to as gonaramachingura.

If we were to move and see what our hon. members talked about on labour issues; if you are blind, you cannot lead those with eyes because you would have already failed. What we are doing is to promote Mupedzanhamo and Siyaso, to come up with door frames and window frames that are made of drums and this is what other countries are doing. It is exactly what China has done. They have seen that there is no cotton in their country but they have a lot of silk. The suits that we are talking about are made of silk and not cotton because silk is abundant in China.

What they have done is that they lower their costs by producing ten suits per ten minutes instead of producing a single suit. We should not be breaking our heads thinking that this budget is unattainable. We should be grateful to Hon. Chinamasa because he applied his intelligence on it.

Mr. Speaker Sir, in conclusion, I want to thank Hon. Chinamasa, I have observed that the win by ZANU PF was not by accident. It was not a fluke because the events show that people are now ruling and being ruled because those that are being ruled now, will be ruled forever. Those that are now ruling, will rule forever. I thank you Mr. Speaker Sir.

*MS NKATAZO: Thank you Mr. Speaker. Firstly, I would like to extend my gratitude and congratulate our Minister, Hon. Chinamasa because of the huge task that he has in connection with our budget. When we were in the committees discussing about the budget, we found out that he was carrying a burden that did not belong to him. Hon. Biti left a lot of untackled issues in a number of departments about money which was not utilised. The problem that we are facing at the moment is that the budget presentation shows that US$16 million was not allocated by Hon. Biti because he was saying that he was doing quite well in allocating funds in terms of the budget. Maybe he wanted to please people because he had been appointed a minister.

At the moment we are suffering and I would like to thank Minister Chinamasa and our President, Cde. Mugabe for giving us a man with a lion heart. If we look at our budget, I am very happy that we should not be saying that he allocated insufficient money because he is trying as much as he can to put together this budget. The department lost a lot of money because of the Inclusive Government which profited us nothing in the past five years.

I would also want to thank Hon. Chinamasa on the issue of prisons. When we look at gender, we cannot say that the funds allocated were insufficient. We are saying that women prisoners are having problems with their sanitary wear and clothing for their children. We apleaded with those that are going to be allocating funds for prisons to provide sanitary wear for women and children that are being incarcerated together with their mothers. We saw that 77 children are being kept in the prisons. If it were possible, it is our plea that, for those that are ten years and below, we want their welfare to be looked into and that they should be able to go to school. They should be in the range of grade 0 to grade 7, but we are worried whether they are accessing education as they are in prison. We ask that they look at that in the budget so that the children go to school whilst in prison.

When we look at our ZIM ASSET, without saying ZANU PF but saying it is a Government thing, we are happy that food and nutrition mostly affects women because in a family household, the mother is the one who knows about the hunger of the children.

We looked at our budget and saw that we have places like ARDA that are lying idle. There are big houses there. There are women who are growing tomatoes and vegetables which they deliver to Mbare Musika. They lose a lot of money when they take their produce to the market. It is my proposition that these places be refurbished because some of the women are losing their lives as they travel on the road and die in road accidents. Again, these shelters shouid be refurbished and turned into markets where they can sell their produce locally.

It is Hon. Biti who left these debts which at the moment are of $7 million that are owed to Members of Parliament and these debts are now bothering Hon. Chinamasa. If Hon. Biti was here we would have asked him why there was such an allowances debt amounting to US$7 million for the previous former Members of Parliament. That is what we were supposed to have quizzed him about but he has left. We are now giving our Minister, Hon. Chinamasa headaches on how he is going to pay these allowance arrears. We should now be talking about development of 2014.

I heard the former Minister Hon. Mpariwa, talking about the Chinese bringing workers to Zimbabwe. The Chinese are bringing experts on construction of boosters. The workers that are doing the menial work are Zimbabweans that are being drafted in. It is not that we are being used by the Chinese, no! I beg to differ as that is incorrect. As has been mentioned by Hon. Mpariwa, the boosters that are being put-up are not being fixed in Harare, Highfield or Mabvuku. These are some of the things that we may see because we live in the communal lands where these boosters are being fixed. They are carrying stones and sand for the construction of these boosters and they are being paid and putting this money to good use in their communal homes.

In conclusion, I would like to thank the minister for our budget because when you look at it, you may say the amounts are insufficient because of its nature. I would want to thank you Hon. Chinamasa and ask you to remain steadfast. Keep it up Shumba. You are a man and you should not backtrack. Do not be frightened or feel threatened but remain resolute. All of us who are here sitted in this august House, both MDC and ZANU PF are expecting to see the budget covering motor vehicles so that we can have our motor vehicles from you Hon. Chinamasa. This is the first budget of its kind by you Hon. Chinamasa. I thank you Mr. Speaker.

MR. ZVIZVAI : Mr. Speaker Sir, I wish to thank you for giving me this opportunity to contribute to this instrument for delivery of the aspirations of the people of Zimbabwe 2014. Thank you very much Hon. Speaker.

I wish to speak on a few things. Most importantly to say this budget has been premised as the Minister of Finance said, on the richness of policy and poverty in terms of countable dollars. What that means is that, the budget is pivoted on correct thinking so that we can grow the cake in the short term as well as in the long term. I, therefore, wish to applaud the minister from the onset for getting Zimbabweans into the right mindset with respect to the development of this nation.

What generally happens is that people have got a wrong perception. They believe that we should come here to rubber stamp but I, personally and the team on my side are not opposed to the budget. We wish to contribute and enrich the budget for the benefit of this nation. Let us not be mistaken, Zimbabwe is for all Zimbabweans and not for ZANU PF or MDC, but it is ours together.

Mr. Speaker, the challenge we face with respect to this particular budget, is with respect to the issue of honesty, which leads to the credibility of this budget. Mathematically, if you look at the extrapolations that the minister has got in his budget proposal, you will find that he worked backwards. He wanted a budget of US$4.2 billion and then he factored in a 29.3% budget to the national GDP factor. If you look at the general trend since 1980, the budget is generally between 23% and 25% of nominal GDP. However, in 2014, the minister has chosen to mislead the nation by saying it is going to be 29.3%. That is not possible Mr. Speaker Sir.

So, we invite the minister to look again at those numbers so that we are looking at a credible budget that can be achieved. There are two things that he has done, 29.3% of nominal GDP equals the national budget of US$4.2 billion. It has never happened and it will not happen this time. If the minister has also clearly looked at international trends with respect to performance of economies throughout the world, economies are performing around 3.4% to 3.6%, with the exception of the Chinese economy which is about 7.3%. What magic is there for us to get to 6.1% if the budget depends wholly and solely on commodities and mineral resources? The prices of commodities and minerals that we have in this country are slumping on the international market. [HON. MEMBERS: Inaudible Interjections]- Yes, except for nickel.

MR. SPEAKER : Order, order. May I please indulge the minister to the fact that he will have his time to bite the cherry instead of responding to the contributor.

MR. ZVIDZAI: Thank you Mr. Speaker Sir, for being so fair and protecting me from the mighty of the minister. It is my wish to always respect the chairs of the ministers and consequently, I expect reciprocity.

All I am asking for, is what the contribution of nickel is in the mining sector. You will find that nickel is commonly a low priced mineral. So, generally speaking we are working on very false assumptions. My own belief is that if we are very lucky and have done very well, the economy will grow by about 4.5%.

Mr. Speaker Sir, the issues of trust have been at the top of the minister's thrust with respect to the performance of the budget. You have said we must build confidence, we must build trust, we must make sure that the instruments that we produce in this august House are instruments that are credible and that we all can believe in. I have got a question. The minister's budget is going to be funded mainly from VAT, PAYE and import duty. All this is related to industrial and value addition. This is where value is added. If a whole minister stands up and decides to foolishly shoot himself in the foot, things do not work out.

MR. SPEAKER : I thought Hon. Zvidzai was debating on the right track but now we have no idea of what you mean by "a whole minister". Can you withdraw that statement?

MR. ZVIDZAI : Mr. Speaker Sir, I withdraw my statement.

MR. SPEAKER : Thank you.

MR. ZVIDZAI : What I intended to say was that if the golden goose that lays the egg is industry and commerce or value addition, what we must do as a nation is all together, across our political divide, is to make sure that industry is assisted. We must make sure that the manufacturing sector is assisted. We must make sure that the beneficiation thrust that we all talk about is supported. Beneficiation does not happen at tomato selling points. Beneficiation does not happen at Mupedzanhamo or Kotamayi Boutique. Beneficiation does not happen there but in industry. It happens in industry for those who might not know.

We need to make sure that we do not allow ourselves to sit up and say we want to kill the formal economy so that we can tshovha everybody into the informal economy. How are you going to get the budget funded if you kill the goose that lays the golden egg? Issues of trust, confidence building, and integrity are very important. When we talk about confidence building - it is an issue of playing the game to the rule. It is an issue of rule of law.

The Constitution of this land has clearly and unequivocally said not less than 5% of the national budget shall be transferred to sub national Governments, provincial Governments or local authorities and to the Chiefs Council. It has not given anybody a choice as to whether it is discretionary. Whether they might choose to give provinces money or not. The Constitution has not said that. It has said it shall be done. If we do not play the game to the rule we do not inspire confidence. If we do not play the game to the rule no one will ever, got to Rufaro Stadium and play soccer using cricket rules. It does not work.

Let us work according to rules so that we inspire confidence for the nation so that people can have confidence in the nation. It is very worrying and in another way very pleasing. We are very lucky as a nation that the Presidency have now chosen Ministers of Finance to be people of books, lawyers. This budget has been developed by one of the big legal minds in this country, second to Hon. Biti-[HON. MEMBERS: Inaudible interjections.]- One would think that the budget would stick to law, very legal.

MS. CHIMENE : On a point of order! May the hon. member address the minister with dignity which is called for? He is not second to anything. He is the minister appointed by the Head of State, Commander-in-Chief of the Zimbabwe Defence Forces. May he withdraw that statement?

MR. SPEAKER : There is no need for that comparative posture between the current minister and the former minister. If you could kindly withdraw that statement.

MR. ZVIDZAI : It was not my intention to hurt anybody. I withdraw the statement. All I was saying is that this budget has been developed by a lawyer of esteem and you expect that - look I am a chemist. If I had developed this, I would probably have missed things here and there. If this budget had been developed by me, an ignoramus at law or Cde. Chinotimba or Cde. Black - [HON. MEMBERS: Inaudible interjections]- he would have missed the point.

MR. SPEAKER : There is no need really to go into those disparaging remarks about fellow hon. members in particular the minister and Hon. Chinotimba. It is unnecessary and unparliamentary. The rules are very clear. Kindly state your case.

MR. ZVIDZAI : I withdraw Mr. Speaker Sir.

MR. MUSANHI : On a point of order. His time has run out.

MR. SPEAKER : Order! Please hon. member do not assume the role of the Chair.

MR. ZVIDZAI : I will make three quick references so that I can sit. The first thing is that the Constitution says a minimum of 5% of the national budget must go to provincial councils, to local authorities, and, there is nothing that has been allocated to these sub-national Governments. It makes the whole budget unconstitutional.

Mr. Speaker Sir, additionally, the Constitution is very clear as to what should happen to the Chief's Council. The chiefs in this country are entitled as defined by the Constitution, to a certain amount of money; not from any ministry but directly from Treasury so that they can help function and work with the people in the communities and they can develop the communities. But, these chiefs have been denied this opportunity by this budget and this budget again is unconstitutional on that basis. I thank you.

MR. SPEAKER: The other issues raised at the end of your debate will be dealt with appropriately next week.

MR. MACHINGURA: Thank you Mr. Speaker for this opportunity that you have given me to say a word or two about the budget.

There is a saying that says, 'when I look at you, you appear stupid, but when you open your mouth, you remove all doubt'. I would like to commend the hon. minister for bringing to this House a budget that is next to none. After he had presented his budget, I said in my heart, there is a true son of Zimbabwe who has the interests of the people of Zimbabwe at heart. From the proceedings in this House …

MR. MAHLANGU: On a point of order Mr. Speaker.

Mr. Mahlangu ordered Mr. Machingura to sit down.

MR. SPEAKER: Order, order. I disabuse the hon. member's order because you are ordering the fellow hon. member to sit down. That is not your role. Hon. member continue.

MR. MACHINGURA: Thank you Mr. Speaker. In the contributions in this House, I think that the minister has been able to gather the corn and left the chaff to the wind and, which direction the chaff will take, I do not know but most probably the corn is kept.

The people of Chipinge, which is the constituency that I represent, are very happy with this budget because it is a true reflection of the ZIM ASSET. When I listened to the contributions that have been made by a lot of people in the House Mr. Speaker, they were actually taking their notes from the ZIM ASSET. They could have done a lot better if they had read the ZIM ASSET before. Why can they not be like the biblical Nicodemus who was quite shy to face reality during the day but at night, he gathered strength. I urge hon. members in this House that if we had read our ZIM ASSET, I think we were going to make meaningful contributions.

Another point that I noted is that, every Chairperson who rose in this House, was giving statements like, if the minister would avail more funds to this ministry. The budget does not belong to the minister but to us. We are the Government. So, if we feel that we are supposed to give more money to this or that ministry, we are not supposed to say the minister. I think that, in my personal opinion, the minister did a very good job and I commend the Minister of Finance and Economic Development Mr. Chinamasa, Shumba, to carry on with the good work. I thank you Mr. Speaker.

MS. KHUPE: Thank you very much Mr. Speaker for affording me this opportunity to add my voice to what other hon. members have already said in so far as this budget is concerned.

Let me begin by saying that, a budget is the most comprehensive statement of a Government's social and economic plans and priorities. It determines how public funds are raised and who is going to benefit from those public funds. It determines how those public funds are going to be used. Having said this Mr. Speaker Sir, Zimbabwe must be able to achieve sustainable human development through this budget. Development is the ability of a country to satisfy the needs of the people using its own resources. The needs are food, shelter, health, education, clean water, electricity, infrastructure and so on. This budget Mr. Speaker Sir, must therefore adopt a basic needs approach that begins and ends with the people, which is the real objective of development.

Looking at this budget, Mr. Speaker, we said we are supposed to be frank with each other and to be open to each other. We are not supposed to be intolerant when other people are speaking. Listen to their views and take whatever you think is good for you and leave what you do not think is good for you. Mr. Speaker Sir, for me looking at this budget in its current form, it does not begin and end with the people. This budget is not speaking to the welfare of the entire population. It is only speaking to about 2% of the population because 73% of this budget is going towards employment costs. It is a fact.

Mr. Speaker Sir, the other thing that I would like to interrogate is that, this is a consumptive budget and Government's thrust must be to grow the economy and lower the proportion of the wage bill in the entire budget. The other thing that I would like to interrogate is growth. This budget speaks to a 6.1% growth and the question that I would like to ask is that, is this growth going to facilitate the empowerment of vulnerable groups such as women and youth? Is this growth going to make sure that it reduces poverty and is it going to create jobs because growing without jobs is meaningless?

Right now what is needed is pro-poor growth and diversifying growth. This is what we need. Currently, Zimbabwe is highly informalised. Zimbabwe is running on an informal trade and informalisation does not facilitate capital accumulation Mr. Speaker Sir. The informal sector is supplying imported goods, hence why our imported goods in 2013 stood at 7.6 billion as opposed to our exports which stood at US$2.8 billion. Our economy is not creating new money. In fact, money is getting out of the country, hence my call that the informal sector must be formalised.

Mr. Speaker Sir, once the informal sector is formalised, to produce. It will have the capacity to employ more people, it will have the capacity to diversify and it will have the capacity to create new money. Right now, the Minister of Finance allocated US$100 million to the informal sector. Believe me Mr. Speaker Sir, the entire US$100 million is getting out of the country and not even a dimeis going to come back to this country.

Like I said earlier on, the informal sector does not produce goods, it is a net importer of goods. Mr. Speaker Sir, we are a market of other countries as we speak - Botswana, South Africa, Zambia, Malawi, you name it. This is what we are. The informal sector cannot grow without the mainstream economy and it is a fact that the informal sector provides livelihood and income opportunities to a large sector of the population. However, the problem is that these businesses are not able to capture growth opportunities when they can be a major source of employment growth. So, Mr. Speaker Sir - [HON. MEMBERS: Inaudible interjections] - No, listen. Efforts to unlock this potential must concentrate on exploiting value change. The focus of Government, right now must be to support increased productivity in the public sector and to facilitate entry of new firms.

Bulawayo used to be called enthuthu ziathunga, the rising smoke. It was called enthuthu ziathunga because industry was operating 24/7. The workers were coming in at six in the morning, knocking off at two. Another shift coming in at two, knocking off at ten and then those that came at ten were knocking off at six. We had a diversified economy because our industry was operating one thousand two hundred and sixty (1260) separate units producing seven thousand (7000)different products. That is how diversified our economy was. This enhanced our export earnings.

If you look at the manufacturing sector, it has accounted for 32% of our export earnings. We had GND shoes; we had Merlin and all these other companies. The informal sector, Mr. Speaker Sir, survived on the formal sector. This is what our mothers were doing. They were buying GND shoes, leather bags, and bed linen from cotton printers, towels from Merlin and they were buying puma blankets from National Blankets. They were selling these products in Botswana, Malawi and Zambia. This is the reason why our banks had a lot of money. Our mothers had the capacity to bank money because they would not need that money at that time; they only wanted to use the money at the end of the year. So, the banks had a lot of money and some of us built houses through CABS loans because banks had money.

Mr. Speaker Sir, like I said earlier on, this budget must therefore ensure that it supports increased productivity in the private sector and facilitate entry of new firms. This will lead to employment creation because employment is nexus between growth and poverty reduction. This budget must create descent jobs and descent salaries for our people.

The other issue that I would like to talk about in this budget has to do with women. Hon. Matibenga has spoken about this issue as well as the other hon. member. Women constitute 52 % of the population and they contribute more than 80 % to the gross domestic products. Half of the food consumed in this country comes from a woman's hand. Women work ten times harder than men. Women are creators of women yet HIV wears the face of a woman; hunger wears the face of a woman, poverty wears the face of a women and discrimination wears the face of a woman. Women die whilst giving birth and women watch their children dying from malnutrition caused by economic deprivation.

Mr. Speaker Sir, gender budgeting is not just the right thing to do but it is the smartest thing to do because it will contribute to the attainment of all the millennium development goals. Gender budgeting ensures that needs of women, men, boys and girls are taken into consideration. I hope and trust that the minister is going to take into consideration needs of all women, men, boys and girls. Any development that excludes half of humanity is as good as no development.

As we speak, women are in the bottom pyramid. They do not have food and they do not have basic needs that they need. If women are educated and healthy and if they have got money in their pockets in their name, their families will flourish. If the families flourish, the nation will flourish too. At this moment, I would want to transport this whole House to the rural areas because 70 % of the people in Zimbabwe live in the rural areas. The majority of these people are women.

I would want to talk about this woman who is in village 1, ward 18 in the Bubi district. She wakes up every day in the morning at 4 o'clock a.m. It is either this woman is pregnant or she is carrying a bag on her back. She goes to cultivate the fields to grow crops using primitive and unmechanised tools in the deep heat of Zimbabwe. This woman spends the whole day there, later in the day she comes back to the village...-

MR. SPEAKER: Order, order. Hon. Ncube at the back there and your colleague next to you, can you please observe some modicum of measured laughter. Hon. Khupe.

MS. KHUPE: Thank you Mr. Speaker Sir. I said this woman spends the whole day in the fields using primitive or unmechanised tools in the deep heat of Zimbabwe. She then comes back to the village, picks a bucket to fetch water and she walks for kilometres to go fetch that water. She comes back before she goes out again to fetch some firewood and comes back. She starts preparing food for her children. Every day in her life, this woman sleeps very late and wakes up very early in the morning. Women spend more than 60 % of their time doing household chores and yet at the end of the day, you will find that if this woman is pregnant she will not be able to go for antenatal care. If she is sick, she cannot even go to the clinic because every day of her life, she is touring from the village to the fields and back.

The point that I would like to arrive at Mr. Speaker Sir, is that yes, this budget has everything to do with women and nothing else. This budget must ensure that there is rural transformation. This is the point that I would like to arrive at. We want rural transformation where women are able to open water from the tapes, able to switch lights from the wall, able to cook using stoves, able to bath under a shower and able to flush toilets. This is the rural transformation that I am talking about.

The Constitution is very clear Mr. Speaker Sir, it says in Chapter 4, declaration of rights, Section 77, right to field and water. Every person has a right to safe clean water. This will also bring me to the fact that depending on rain water does not help. You will give people seeds, fertilizer, the rain will come, all of a sudden it disappears and these women spend most of the time in the fields and yet they will not harvest anything Mr. Speaker Sir.

I want this budget Mr. Speaker Sir, to look at modern agricultural technologies like drip irrigation. With drip irrigation, you use a small piece of land, little water but the yield is very high. At the same time, drip irrigation is going to reduce the workload for women, so that they do not work up early as people who are going to the fields and coming back and doing all sorts of things. With drip irrigation you just walk a few miles, you switch on the pipes for an hour, you go back to your village. After an hour you are able to do anything because you have got nothing to do. If this woman is pregnant, she will be able to go for antenatal care.

Mr. Speaker Sir, our maternal mortality as we speak right now is 960 out of every 100 000 live births, meaning more than twenty women die every day while giving births. This budget must ensure that we reduce maternal mortality.

Mr. Speaker Sir, I would also want to talk about the issue that has been talked about. Zimbabwe is currently experiencing a growth that squanders resources that are needed for future generations. As we speak right now, gold, platinum and diamonds account for 65% of our export earnings. Mr. Speaker Sir, there is absolutely nothing to show that these minerals are accounting for 65%. Do you know that our grandchildren are going to spit on our tombs because all they will find are holes because these minerals are natural resources, at some point they will get finished. Other members have already alluded to value addition and beneficiation and I know that the minister has already spoken about that. This budget must ensure that we move away from being primary producers to secondary producers.

Mr. Speaker Sir, when I look around this House, I am supposed to see gold glittering in your eyes because Zimbabwe has got gold, I am supposed to see diamond glittering in your eyes. Mr. Speaker Sir, I know the minister has already spoken about this issue, the issue of geological survey. Investors will not come to a country to do experiment, they want to come and invest where they know how much we have underground. Look at what Angola did, look at what the United Arab Emirates did, they took advantage of their oil and developed their countries. Mr. Speaker, development is not rocket science where you are supposed to invent something in order to do something.

Mr. Speaker, development is about discovery, development is about copying from other people. Why are we not copying from Angola and the Asian Tigers. It is high time we move away from what I call nato, (no action, talk only). We are very good at talking but when it comes to action there is zero. Mr. Speaker Sir, Zimbabwe is a very rich country. If we start doing the right way, it will be an economy to beat any in Africa.

I would like to conclude by saying in my own analysis, this budget Mr. Speaker Sir, is not going to be able to deliver real change to the people of Zimbabwe. This budget is not speaking to the entirety of the population. This budget is going to speak about 2% because 73% of this budget is going towards salaries. This budget will not be able to adopt a basic need approach. I thank you.

MR. MGUNI: Thank you Mr. Speaker. Mr. Speaker Sir, the budget that we have here did not come from mars. I stand to differ with the former minister of finance who said one of the things that will make this budget fail is the confidence that is against the leadership.

Now, when we look at this whole budget, where it came from, it came from ZANU PF manifesto in transit to ZIM ASSET. If we look at that, it shows innovation, credibility, the tried and tested of our leadership. This if very good, it shows that we have great leaders who could deduce what we have produced as majority and then they took everything to themselves to make this budget work.

Mr. Speaker Sir, I hereby stand today to tell you that I have attended budget meetings for various countries in SADC, this is the most innovative budget I have ever seen. This has got policies that are there to empower the people, if you do not understand the empowerment of the poor, that is why others are now affiliated to a person who cannot speak English. They do not understand that we have to empower that person to speak English because they say knowledge is power, they need to understand where we are going. Mr. Speaker Sir, there are still people with blinkers that if America and Britain are not there, nothing goes. No, Mr. Speaker, we have forged relationships with the BRICS countries. BRICS does not mean Britain; it means Brazil, India, China and South Africa. We are forging that ahead, like what I heard people talking about, because I am very clear on performance management systems. People were saying you ruled for 33 years and you failed, it is not true Mr. Speaker Sir. The first 10 years, we were forced to sit with those who were opposing us. They did not want to put in genuine polices that we wanted here. They ruined the economy of this country, like in South Africa now, ANC is now a statue, there are people who are controlling that country as I am talking. This is the same phase that we faced from 1980 to 1990.

Mr. Speaker, there is another five years that ZANU PF was not alone, it has to be subtracted from 33 years.-[HON MEMBERS:Hear, hear]- we have to be realistic, we want realistic things that will make the nation move. We do not want to build progress on IQ calculated information. Mr. Speaker Sir, the indigenisation policy, a lot of people even in the Parliament do not understand it, but the Hon. Minister when he opened this budget speech explained clearly that, that is why he wants to explain and make everybody clear so that the investors cannot fear anything. I want to quote in Ndebele, Mr. Speaker on this indigenisation, will you allow me? 'In a man's home lapha okuhlala khona ubaba sokubulewe inkukhu ubaba udla iqolo lomlenze umnikazi womuzi, ungambona esidla amathumbu kasobaba he is not a father that one. We must empower Zimbabwe.

MR. MAHLANGU: On a point of order Mr. Speaker, can the hon. member kindly use one language.

MR. SPEAKER: There is no point of order because the hon. member has asked for permission to quote in Ndebele.

MR. MGUNI: Mr. Speaker, on this budget debate, I will ask all hon. members to be tolerant because people of Zimbabwe never chose any member here based on education or criteria on credentials. They chose a person who is capable of representing them. It is therefore indicating correctly well ZANU PF's maturity because they care for everyone, whether you went to school or not. I thank you Mr. Speaker.

MR. HLONGWANE: Thank you Mr. Speaker. I have very few remarks to make pertaining to the budget presented by Hon. Minister of Finance and Economic Development, Hon. Chinamasa. The minister is presenting this budget in a very constrained environment, with the economy that is asphyxiated by a very difficult economic embargo, that this country has been battling for the last 13 years. I think that the minister does deserve commendations for trying to put together this very important economic instrument we call a budget in this kind of reductive environment.

It is also important Mr. Speaker to note that the minister does not have control over issues around money supply growth because we are not using currency that belongs to us as a country. So there is no money that we print, therefore the minister is not in control of monetary policy. The minister is not in control of the exchange rate. This is the kind of operating environment that this budget is coming in. Hon. Kereke earlier, brought before this House a very important but stunning point around money that was given to most IMF members as special drawing rights. That money which is US$5000 million more or less about the equivalence of what is owed to IMF by Zimbabwe, was set aside in an Escrow account instead of it being deployed to deal with the arrears that are owed to IMF.

There are clear political reasons why this is happening Hon. Speaker, and these are significant matters that need to be dealt with. The Global power hierarchy in which Hon. Minister Chinamasa is trying to get this economy to be talking to other economies as he always alludes, is a very difficult Global power achitecture, one of subjugation, one which has serious imperial designs, one which continues to subjugate the people of Zimbabwe, even in this very obvious case of the special drawing rights in which US$140 million out of the US$500 could have been deployed towards the clearance of the arrears owing to the IMF. The reasons clearly being that once that is settled, it will unlock new money and that is one of the most challenges that the minister has got in this budget as part of the macro-economic environment. Cannot generate new money.

The fact that the money we are using in Zimbabwe is not our own money, makes it difficult therefore, in an environment of this economic embargo to generate new money that is to unlock new money from other financial institutions. This is the kind of environment that the minister is bringing this budget in. The minister is also bringing this budget in an environment of sustained skills flight. There is a direct co-relation between skills and development of the economy, which is obvious. A lot of Engineers have left this country; I think Hon. Maridadi will allude to that fact. Himself having been at ZESA, he will know that part of the reason, apart from the issues around capacity for generation and so on and development of the grid, part of the reasons why such a specialised assets like ZESA are having problems now is because the highly trained Technicians and Engineers have left for the so called greener pastures.

So, the minister is bringing in this budget in that kind of economic environment which is very difficult.

I will speak a little also around the issue of the embargo. Our economy in Zimbabwe is not modeled around the Chinese economy or the Asian economies. It has a pan European template, for simple reasons that we are a former colony of Britain, a European country. We have developed relations with the technologies in Europe and most of the businesses that we find in our industry have got equipment and apparatus that are imported from those countries.

So, the sanctions measures or the embargo on Zimbabwe by Europeans then have a significant impact on Zimbabwe when they are imposed in the manner that they have been. It then becomes important to speak to this issue with clarity and not to duck and dive around it.

This is important because global power hierarchies again as I said, have put in place a system that is very steeply vertical that makes countries of the south very dependent on the global north in almost everything, whether it is consumption of technologies or other products. Southern countries are intravenously linked to the northern countries and when the north have that kind of advantage, we find ourselves in a very constrained economic environment when we have the kind of an embargo that we have.

So, the hon. Minister of Finance has done a lot of scissors kicks in this budget. He has tried in this budget to, in his own words, come up with a budget instrument which is long on policy but very short on money in terms of the quantum of monetary resources available to it. This is the kind of scenario that the minister is bringing up this budget.

What do I proffer as suggestions going forward against this kind of backdrop? It is clear that given the various submissions made by the Chairpersons of Committees yesterday and the day before that I think the minister is going to find himself in a situation where he has to come up with a supplementary budget. There is not even one committee that came here and said that the department they oversight on had been adequately funded. All of them are complaining that the Votes are below expectation and they are expecting much more allocations in order for them to acquit their business in a manner that they are expected to do as Government departments.

I want to suggest other alternatives which are off budget measures in order to carry the economy forward in the year 2014, given the constraints around issues of money supply growth.

It is clear to me that one of the things that the Minister of Finance and Economic Development will have to do is to encourage line ministries that are responsible, especially for infrastructure development, is to escalate the model around build, operate and transfer (BOT) as well as triple Ps. I think that is going to become very important in an environment where we do not have money to finance various infrastructure projects in our country.

Infrastructure is important for economic development. Others say, an investment in infrastructure brings about a much more added investment in the economy. I agree with that kind of school of thought, where we develop these arteries - our railways, roads and we have a smooth road network or a smooth railway system to carry goods and enable commerce to happen, I think, it is important that that kind of investment is realised but obviously modeled around BOT as well as triple Ps. I imagine the same obtaining for energy development because energy sector development is clearly one of the most important imperatives in terms of the realisation of economic growth. We are talking of irrigable agriculture, without electricity that will not happen. We are talking of industrial production, a lot of industries have closed shop because there is no predictable power supply and it becomes difficult to plan. So, issues around infrastructure development modeled around BOT as well as triple P are going to become an important off budget measure to escalate development in the given circumstances.

The issue of the Angola model has been made reference to by the former Deputy Prime Minister. I think that is one way to go again, as part of off budget measures. In Angola, upon realisation of a cessation of hostilities in 2001, I believe when they removed rebel leader Savimbi, there was a Donor Conference in Angola to try to look at issues of how to raised money to assist economic development in Angola.

So, all European countries came as well as the traditional western donor countries. Out of that donor conference, Angola raised US$200 million and it was clearly not sufficient for their needs. They went to the Chinese and engaged them on the back of a huge oil and gas reserve. They agreed with the Chinese that they could mortgage a certain quantum of oil and gas reserve against a certain amount of money, to lent.

Just in that transaction they raised US$22 billion, which money is being moved into Angola for infrastructure development and the development of their economy. Notwithstanding the fact that most of it is not coming in as cash into Angola, but it is technology transfer issues. It is the movement of materials, the expertise, technical cooperation that is coming into Angola and the realisation of a modern infrastructure development that we begin to see in Angola. I think that is one way that we can deal with these matters off budget. Given the fact that we have a huge resource base as far as our minerals are concerned, I think that is one area that we need to look into.

Hon. Chinamasa, I want to commend you for publicly stating that you are going to engage with all and sundry vis-a-vis issues of making sure that Zimbabwe is able to get out of the woods. In my view, engagement is the only constant - [HON. MEMBERS: Hear, hear] - We cannot close ourselves in a cocoon as a country.

It is important, in my view Hon. Chinamasa to speak to the people that are not very pleasant to us, to discuss with them around a table and dissect issues of our economy and say, how do we move forward? I think that thrust that you have brought in this national conversation around our economy is very important if it is sustained. I think it is important that we take that view and go forward with it.

The Chinese have done a very good job in terms of issues around technology and the President has often spoken, for the last ten years about the Look East policy. I think it is important to give expression and meaning to the Look East policy. It is important, Minister of Economic Development, that the various small technologies that enable a rural farmer, for example to produce to be found in Zimbabwe.

There are very cheap technologies; we do not want to consume those technologies lock, stock and barrel. They can be brought in here for assembling. Small tractors that are twelve horsepower for instance with a one or two disk plough to enable rural farmers to be able to escalate their production. There are several other technologies that I can make reference to. We do not have to consume those technologies as they are from China. They can be brought in as completely knocked down kits that are assembled here, that brings the price of those products down and enables production to occur. The supply side of the economy obviously is very important.

The last point Mr. Speaker, is that there is the whole issue about statistics. The statistics around corruption rankings for instance. Again, because of the architecture global power hierarchies and the fact that

in Zimbabwe, some of those people that represent those very otherwise reputable organisations, in certain instances, you then find them getting involved in politics, domestically.

In my view, there is no very clear integrity of data that is published globally about the image of Zimbabwe. I think a lot of this data is concocted to achieve certain political aims. Issues around corruption in these rankings, Zimbabwe is always number three from the bottom, and there are several other rankings that are not very amiable to us, which makes Hon. Chinamasa's job very difficult when a person is sitting in some capital somewhere and has got money and they think that they want to go to Zimbabwe. That is the first thing that they look at; how does Zimbabwe rank in terms of this and in terms of that. My suggestion to that effect Hon. Speaker, is that ZIMSTAT must work very closely with the Minister of Information and Publicity to repudiate and also to counter those kinds of fabrications that come from mischievous and malicious elements that are bent on discrediting Zimbabwe to sustain an economic agenda that takes Zimbabwe down. I think ZIMSTAT needs to look into that as it falls under your portfolio, I believe. I think you can do a good job to encourage them in that direction.

Having said that, Hon. Speaker, it is my view that we cannot blame the Minister of Finance and Economic Development for coming up with a budget in such a difficult operating environment. Therefore, I want to urge that this budget be passed unanimously in this House. That we all come together and support the Minister of Finance and Economic Development by passing this budget so that we move forward as a country. We do not want to continue to hamstring ourselves around political issues on what is supposed to be a straight forward economic matter. Thank you Hon. Speaker.

MRS. CHINANZVAVANA: I would like to thank you Hon. Speaker Sir, for affording me this opportunity to speak on the 2014 national budget. I would like to thank those who have spoken before me for eloquently enunciating most of the issues, of which I am not going to deal much on. I am going to buttress on one issue that concerns the future, that is the children of Zimbabwe's education.

Mr. Speaker Sir, in the education sector, the budget allocation for the Ministry of Primary and Secondary Education of US$865 669 000 against the ministry's bid of over US$1.2 billion is rather worrying, considering the provision of efficient functionality of the ministry's mandate. Of the allocated US$865 million, more than 95% of this total is said to be covering employment costs, leaving a balance of less than 4% for operational costs. One is left to wonder how then this would sustain a credible education system for our Zimbabwean children.

It is highly worrying considering that Section 75 of the Constitution of Zimbabwe states that every citizen of Zimbabwe has the right to basic state funded education, especially primary and secondary. This constitutional requirement would be defeated in that there is not even enough to run the business of the ministry, let alone provision of credible state funded education to the children of this nation. I am further worried, Mr. Speaker Sir, that we should be advocating for pro poor policies and alignment of constitutional mandates. Further considerations should be made in relation to this allocation such as resourcing for the education sector in order to alleviate the plight of short changing the Zimbabwean standard of education. The 3.03% that would be left over after over 95% has been taken by employment costs is a far outcry to be adequate for the provision of material resources and infrastructural development.

Mr. Speaker Sir, talking of infrastructural development, the nation has a burden of substandard schools that are in dire need of infrastructural development. There are the formal and the so called satellite schools, whose situation is so desperate that children are learning under trees and in this rain in disused falling down tobacco barns which are a menace to the livelihoods of our children. There is need for urgent redress to this situation, hence a need to revise the budget for the Ministry of Education, Sport, Arts and Culture.

Mr. Speaker Sir, may we implore for the provision of subsidiary measures. For how long, without infrastructure, will our Zimbabwean children be exposed to this life threatening situation in schools, where they are supposed to be nurtured to grow both physically and intellectually? We have over 1 300 of the so called satellite schools requiring new structures; 833 of them being primary schools and over 500 of them secondary schools, exposing over 65 000 children to the hazards of nature and substandard education. These, considering the substandard nature of their resources, cannot be expected to get to the pass rate of the national examination, yet they sit the same examinations as those children at schools like Roosevelt, Allan Wilson, St Georges College, to name but a few.

This is a glaring human rights abuse to the formal satellite schools considering the provisions of standards of education. Above all, Mr. Speaker Sir, there are those who should benefit from the Basic Education Assistance Module (BEAM), whose fate is yet unknown. We hear of over a million primary school children who may not have their right to education because their plight is not known as BEAM is not going to provide for them this year. This issue will have to be revised and looked into.

MR. HOLDER: Point of order Mr. Speaker Sir. The hon. member here is presenting what has been presented by the committee. So, I think it is a repetition of what was presented before. - [HON. MEMBERS: Inaudible interjections.]-

MR. SPEAKER: Order, order. Will the hon. member strike new ground please?

MRS. CHINANZVAVANA: Thank you Mr. Speaker Sir, I was just going to outline why and how we are saying we have been shortchanged in the education sector of Zimbabwe.

In conclusion, this issue has to be revised and looked into. It would help us to review the remuneration of the teachers in Zimbabwe and supporting staff, lest we become mutilants of our own home grown Constitution that calls for basic, standard, state funded education for the people of Zimbabwe. I thank you Mr. Speaker.

MR. MUDEREDZWA: Thank you very much Mr. Speaker Sir. First and foremost, I would like to thank the Minister of Finance and Economic Development for coming up with a balanced budget that came out as a result of lots of consultation. Mr. Speaker Sir, we received evidence that many people were consulted and they gave input to this budget. This is why it is so balanced. Even the bankers confirmed that day that they had nothing with the Minister. All they requested for, it was provided. So, we would like to thank the Minister for that approach. We lament that it is a stand still budget but this budget is not as a result of the fault of the Minister. We know there was a Government that was there yester year and what happened yester year, let us forgot because those are bygones.

We would like to address this issue moving forward. The budget that was presented by the Minister is addressing all issues to do with ZIM ASSET. ZIM ASSET is the driver of the Government of the day towards realising the wishes and the aspirations of the people. ZIM ASSET is directed towards food security and nutrition, social services and poverty alleviation, infrastructure and utilities, value addition and beneficiation. These issues are being addressed by the budget, so I would like to thank the Minister for that.

However, I have got areas that I feel I have to reinforce so that the Minister can give special attention to those areas. I was quite disturbed when I noted that in the Ministry of Defence, the Zimbabwe National Army has not been recruiting over a long period of time. This is not proper Hon. Speaker Sir, because what should happen is that we should have continuous recruitment in the defence forces. We need protection today and tomorrow and the defence forces should be well looked after in this respect.

Mr. Speaker Sir, I am happy that the retention fund was recommended for the Ministry of Home Affairs. It is the survival kit of that Ministry as we look at ZRP, Immigration and the Registrar General's Office. I hope the Minister is going to uphold what has been happening in the past.

Mr. Speaker Sir, I come from a rural constituency, Buhera Central. My concern is that the budget allocation that was given to Rural Electrification Agency (REA) is too minimal. REA is the driver of developing rural areas in the area of electricity and we noted that there is only US$2 350 000.00 that was allocated to REA in this respect. We are appealing to the Minister of Finance and Economic Development to address that aspect because in my rural area, we do not have electricity and it is quite disturbing that when you go back home, they always ask you, when are the schools going to be electrified.

Mr. Speaker Sir, I also want to raise my concern on the aspect of tarring rural roads. The budget is not talking about that and what I have seen is that we are concerned about upgrading roads which are already there. I take for example the Birchenough-Murambinda road. This road has been on plans for years and when I look at the budget, I did not see anything to that effect. When I look at that, I would like to believe that the Hon. Minister is going to address such an issue because this road, like I said the other day, is the key to the development of the whole district. Even people in Chipinge, when they want to come to Harare, they come via Masvingo or Mutare which is very expensive. We have the ethanol plant there and when we would like to transport fuel to Harare, the direct route to Harare from Chipinge is via Buhera and that road is quite poor such that it cannot be used at all.

Mr. Speaker Sir, I take concern on the aspect of boreholes in the rural areas; water supply for human consumption. I have not seen anywhere in the budget where this aspect is being addressed. We come from rural areas Mr. Speaker Sir and our concerns are rural. I am appealing to the Minister not to delegate this issue to the District Development Fund (DDF) alone. We need a vote from this House that seeks to direct itself towards water supply in the rural areas.

My last contribution Mr. Speaker Sir is on agriculture. We do have Agricultural Extension Officers in the rural areas but they are not mobile. I was looking at the budget and I thought, there is somewhere where they are going to be provided with vehicles or even motorcycles. I think that aspect should be addressed because farmers in the rural areas need to be assisted and Agricultural Extension Officers need to be mobile. All in all, I have noted that the Minister was cutting his jacket according to the cloth Mr. Speaker Sir, and as I know him, he is a bold fighter. He is just starting and he is on a starting line and given the chance and the time, I am convinced he is going to deliver. So in that spirit, Mr. Speaker Sir, I am urging all Members in this House to support this budget so that the nation moves forward. I thank you.

MR. MAHLANGU: Thank you Mr. Speaker Sir for giving me the opportunity to contribute on the 2013/2014 budget. I would like to also acknowledge and thank the Minister of Finance for giving us time as a Parliament, to extensively debate this budget.

Mr. Speaker Sir, yes as a country we have got a lot of challenges. I think we all agree today that we have got a lot of challenges. If we look at these challenges as a Parliament, we will agree that we have got these challenges. I think that is the only way we can try to come together as Members of Parliament to assist even the Minister of Finance, looking across the political divide. Minister, I am going to contribute on our National Environment and our Natural Resources, also supporting my Chairperson for Natural Environment and National Resources, Ms Anastancia Ndlovu - [ AN HON. MEMBER: And our President]-

Mr. Speaker Sir, our environment and our natural resources is a gift from God. No one manufactured the environment, even our animals. Our lions, our elephants, those are a gift from God. Even our diamonds and national resources themselves gold, platinum are a gift from God. It is not from anyone. So, Mr. Speaker Sir, it is very important for us as a country, to conserve our environment also to protect our national resources. Why I am saying that Mr. Speaker Sir, of late, I think it is public knowledge, even in the Budget Statement from the Ministry of Finance that a lot of measures need to be taken to correct our past in terms of environment conservation. If you still remember all of us Mr. Speaker Sir, last year at Hwange National Park, we lost about more than hundred elephants through cyanide poaching. A lot of villagers were tortured by police.

Cyanide Mr. Speaker Sir, is a very expensive poison not any ordinary villager can afford to buy that cyanide. We wonder now who was sponsoring those villagers with that cyanide? So, Mr. Speaker Sir, what we are saying is that, we need as a country, to protect our national resources. We should never have any political bias towards our national resources. We need to agree as Members of Parliament that is my duty, it is your duty, it is a duty for all of us, even the Committees to protect our national resources and our environment.

Mr. Speaker Sir, I propose and I second the statement from the Minister that we should resuscitate our campfire project. We need to resuscitate our campfire project Mr. Speaker Sir, in order to involves committees in the preservation of our environment. We need to involve our villagers, our people, so that they do not become vulnerable to these poachers because of poverty. So it is very important and essential Mr. Speaker Sir, to involve everyone, even the stakeholders in the preservation of our environment, and our national resources. Because at the end of the day, the last defenses of our natural resources are the people, not even a gun not even our national party workers. The communities that live there are the last defence of our environment. So we need to empower our people by ensuring that they also have a share in whatever income is realised from the sale of those resources.

I also come to the issue of climate change Mr. Speaker Sir. Climate change Mr. Speaker Sir, affects all of us, affects our well being, affects our people in terms of agriculture. So Mr. Speaker Sir, it is very important that our greatest challenge that we have in terms of environment change are veldt fires. Who are behind these veldt fires? We need to look at these issues Mr. Speaker Sir, and come out with stiffer punitive measures to ensure that the people that are involved in these veldt fires are arrested, are given stiffer sentences.

Then Mr. Speaker Sir, it is very important again to safeguard our trees, our forests. We need to safeguard our forests, by ensuring that we protect our trees from being cut down and used as firewood. We need to ensure that we come out with renewable energy so that our people are empowered in the rural areas and empower ZERA to ensure that our people in rural areas afford electricity, so that the level of deforestation is not increased. I also want to go to tourism...

MR SPEAKER: Order! Order! The Chair orders the hon. member to direct to the actual provisions of the actual budget.

MR. MAHLANGU: I thought that Mr. Speaker Sir, I am responding to some of the issues that are in the budget about the environment and natural resources. Now I am going to tourism that is in the budget, that is what I am responding, I am still in the budget.

MR SPEAKER: Order! Perhaps the hon. member did not understood the Chair. I am saying if you are discussing environment, are you saying the provisions for environmental issues are inadequate or adequate something like that?

MR. MALHANGU: Thank you Mr. Speaker Sir, as I said before, I am going to tourism. Mr. Speaker Sir, our Victoria Falls is one of the largest tourism resort in the world. We have heard of late Mr. Speaker Sir, about increasing arrivals of our tourists into this country. But we wonder sometimes, who is arriving Mr. Speaker Sir. Are these people arriving assisting this country in terms of contribution towards GDP or they are just tourists coming into the country to enjoy themselves or to look for investment issues and so on. Mr. Speaker Sir, we need to look at our tourist arrivals. Are these tourists from the western countries or Asia? What I know is that we have people who have been coming into this country without helping us. We are not getting anything from some of the tourists that are coming to this country. We only get those book tourists that come to this country, just to come and see and they go back.

Mr. Speaker Sir, I propose to the minister that we need also to encourage domestic tourism to encourage our people to go and view our tourist resorts at a low cost and not to compete with foreign tourists. It is important to allow school children in order to know our history, to also be given an opportunity to go free of charge to view our tourist resorts because these are a national heritage for our children. It is essential that we promote our own tourism by encouraging locals to also go and view these tourist resorts.

Mr. Speaker Sir, going to the budget, the allocation that was given to the Ministry of Tourism is not enough for the ministry to cover its costs. The minister should look at this budget and ensure that he increases their bid. Since these tourist resorts are a national heritage for our children, we need also to involve locals as I said earlier on when I talked about environment. We should empower the people that are actually in those tourist resorts; we need to empower those people by ensuring that they are the first people to benefit. If you go to Victoria Falls, you might find that people who are staying in Victoria Falls do not even know the resort area. Therefore, it is imperative that we empower the local people themselves before you call the Chinese or people from America to come and view these tourist resorts. Mr. Speaker Sir, without much ado, I thank you.

MR. HOLDER: Thank you Mr. Speaker Sir, for giving me this opportunity to contribute to the national budget. Looking at the national budget on Section 24, Mr. Speaker Sir, in 2014 the global economy is expected to grow by 2.9 to 3.2% recorded in 2012. That is actually very good Mr. Speaker Sir. I would like to commend the hon. minister for highlighting in Section 40 where global oil prices are projected to decline by 3% in 2014. That is favourable to Zimbabwe oil input.

On Section 41, projection of prices to decline to 4.2% with the exception of nickel, this is where I feel Zimbabwe as a country should take advantage of that. The nickel price is going up and if we manage to mine and export more nickel, we will be able to contribute more to the economy. In Section 102 of the mining sector, it was projected to grow by 17.1% in 2013 which has been dropped downwards to 6.5% mainly on account of lack of exploration. That is true Mr. Speaker Sir.

I would like to compliment the hon. minister for taking note of all that and highlighting it so that the members could understand exactly what is taking place. In Section 103, Mr. Speaker Sir, the reduced output was not tabled for gold and diamonds and a positive performance in platinum, nickel and coal. That again, we can see that a lot of home work was done by the hon. minister. On Section 104, it is projected to grow in 2014, 11.4% on the planned investment - that was lack of performance in the gold, diamonds, nickel and coal.

In Section 107 Mr. Speaker Sir, gold production was predicted to increase by 7.1% from 14 000 kilogrammes in 2013 to 15 000 kilogrammes. Mr. Speaker Sir, the incentives that are being put on the table are that the royalties that were being charged were too high, it was 7% royalties and 2% presumptive tax, taking it up to 9%. The hon. minister actually reduced the royalties from 7% to 3% for those that are producing less than 500 grammes. I think the 3% should also be included onto the big producers because the big producers will end up only sub-letting 500 grammes because they want to pay 3% instead of 7% royalties.

Talking about investor confidence Mr. Speaker Sir, the tax which the Government is charging, 10% presumptive tax and 15%, if you add the two it gives us 25% for exporting the PGM minerals. I think the investors in that sector would actually have no confidence but if we reduce it and come down to about 12%, I am sure that will give a lot of investors confidence to continue expanding the platinum section, the PGM minerals.

Mr. Speaker Sir, one thing that I noted from the hon. member who spoke about education, ZANU PF did what MDC did not do and that was to educate people since 1980 and we have the highest literacy rate in Africa. Let me add by saying, when Hon. Khupe debated, she spoke about development in the rural areas, putting water all sorts of things; dams and so on. During the time when she was in office Mr. Speaker Sir, what did she do for the rural areas that she can point back to and say that she put taps and developed to make life easy for the women in the rural areas.

Mr. Speaker Sir, also adding to the budget that was presented, the minister spoke about the budget of Parliament which was $20,5 million. I feel that this budget should be added because the importance of this august House, the importance of executing and debating the issues here; I feel that, Mr. Speaker Sir, we need to add more to this budget so that we are able to deliver our work efficiently. Without taking too much of your time, I would like to comment that the hon. minister did a perfect job in the budget.

However, on the chrome producers, Mr. Speaker Sir, in Section 117, 312 285 tonnes of chrome was produced during the first 11 months in 2013, compared to 394 657 tonnes that was produced in the same period in 2012. This had declined by 82 372 from 2012. The low output was due to the fact that there was no window period. Now, if you look at the market, the chrome and nickel price is rising and we as a country, need to take advantage of that. If we could have a window period to move in to that sector and supply the chrome and nickel that is required, this will help in contributing to the fiscus. With those few words, once again, I would like to thank the hon. minister for such a splendid job, well done.

MR. MATANGIRA: I want to thank you Mr. Speaker Sir, for allowing me to air my views and comment in support of what the Minister of Finance and Economic Development has given us in the budget. I would not want to dwell much on what other hon. members have deliberated upon in support or not supporting, but I would like to affirm with figures, not thoughts or something that one may want to say this is what may happen in the country.

In agriculture, the said increase, actually in percentage; from where I come from, in 2013, the hectarage that was put under maize was 11 285 ha compared to 2014, we have got 19 134 ha. It is an increase of 51% in that particular district where I come from. Tobacco, in 2013, we had 3 067 ha of tobacco, this year we have got 4 765 ha, an increase of about 55%. Soya beans, in 2013 we had 3073 ha in Bindura, this year we have got 5 065 ha. This is an increase of 45%.

When we talk about the province of Mashonaland Central, we have an increase of maize in hectarage of a rise of 7%. In 2013, Mashonaland Central Province planted 135 149 ha and in 2014, it has planted of to date 144 834 ha, an increase of 7%. Tobacco, 2013 was 21 384 ha and 2014 has got 28 242 ha, a rise of 32%. These statistics show that in agriculture, we are definitely going to have a rise in production. I want to allude and say that, the people were given inputs in time on the Presidential Seed Pack; people were given seed, fertilizer and lime on time.

If you are driving in the rural areas, you will feel the Lord has come down to earth. Like the Israelites, when they made wrongs in their journey to Israel or the Promised Land, the Lord usually hit them with whatever hunger and sicknesses. On 31 July, the Israelites again, actually remembered their journey to the Promised Land and we did well. We voted rightly because we had forgotten where we came from, where we were and where we are heading to. With the rains coming, this is going to be a prosperous year.

All I would want to do, Mr. Speaker Sir, is to request the Minister of Finance and Economic Development to actually avail enough money to the GMB because what it means is, in the district of Bindura alone, if we are going to have the tonnage from 19 000 at three tonnes per hectare, we are going to yield +/- 57 000 tonnes. By $350 per tonne, we will require +/- $20 million to purchase that maize.

My feeling is, the GMB has got to be capacitated so that it can be able to pay for the maize to feed the nation rather than the people or contractors who come to the people and rob our rural folk by purchasing the same maize at $180 per tonne to go and feed either chicken or maybe to make stock feed. I am thinking that it will be wise to have GMB capacitated to have the money to pay the farmer in time. Those who are in the business of stock feed should be allowed to import the maize to make the stock feed. We understand it is an industrial business. They also produce food for the nation but it is rather the people have the food security that we are talking about in the ZIM ASSET. Enough food for the people. Those that want the stock feed must import their feed.

The same should be done with the soya beans and tobacco. We are saying if industries are going to have a chance at survival again, we are going to have a high yield in tobacco. Maybe we should want to reopen BAT. They must make the cigarettes here rather than us having to export the tobacco and we are growing other people's economies. We are talking about a situation whereby the soya that we are grow here, it used to go to Liver Brothers. Liver Brothers would use it to extract cooking oil for us. The cooking oil would be cheaper than what we are importing. The same cooking oil, we do not know from what crops and how it has been grown, whether GMO or not GMO. If we would consume what we grow, we know exactly what we are eating.

Mr. Speaker Sir, having said this, I also feel that as hon. members in this august House, we have to feel for ourselves. We have to be ourselves. We do not have to say, for the sake that we differ. We are coming from different walks of life politically. But, when we are talking about the country, we are talking about ourselves. We are talking about our lives, our children and our tomorrow. People talk about education. The people that liberated this country were not a people that said, who is educated to liberate it. It was the feeling of oppression that we fought against.

We are saying agriculture, if liberated from the throngs and chains of sanctions, the banks should be able to finance agriculture. The economy of this country will turn around so well. We want to thank the Minister of Finance for having crafted such a beautiful budget for this country not to be destructed by whoever or whatever. - [HON. MEMBERS: Hear, hear]- when people say it is not labour friendly, everybody was saying labour is the major cost in any productive country or industry. We understand it, but, we had become burgers sitting on golden stools. We have got everything like the minerals. We are talking about indigenisation, In my constituency, Bindura, we have got the community share ownership trust. It has done wonders.

It has repaired roads, it has built schools, it is building hospitals and clinics, and we say indigenisation is not right. When foreigners come in, they milk your cows. They take your milk and at the end of the day, you say we are not having milk. You are not having milk because you are allowing people to take what you own and you say yes, Boss. Indigenisation has benefited. The 51% and 49% we are saying Amen, if a man comes into the country, it is not immediate that we are talking about the 51% and the 49%.

We have got our minerals. Gold for instance, mining sector is set to grow as well, but how? I remember in the past years, the Minister of Mines would work in conjunction with Fidelity, the sole trader in gold in Zimbabwe. It was built in 1987 to process and refine gold for Zimbabwe so that most of that gold, would be used in the industries, in jewelery and refined silver as well for industrial beneficiation. Whatever excess was left would be exported. Today, when you look at it, in 2009 and 2012, there was a liberalisation of gold. Anyone who needed it could buy it and export it. Where to, no one was asking and we are saying today, the Ministry of Mines, will say fine. We have got gold buying licences that were issued by the Government of National Unity. Who they gave those permits were not miners.

There were some people who were in town who would have the permits. They would buy the gold and the ministry would not account how much the gold was bought by those buyers. So we are saying to the Minister of Finance, it is our thought that if you would let the Minister of Mines to issue those permits, in conjunction with Fidelity because Fidelity would know, who are those that are delivering the gold to Fidelity. Those who are not delivering may be, would say that is fine. We revoke the permit and we stop them from having that permit. The Gold Millers Association (ZIGMA), they had a rule of saying anyone who has got that certificate to produce that gold and mill for the people, must produce a kilogram. How many do we have in the country?

We have got over 300. The gold buying licences, we have got over 85. If we say each one of them produces a kilogram of gold every month, Zimbabwe will have a lot of gold. Beneficiation we are saying, why should we keep on wanting to export our gold for another refinery in South Africa before we sell it internationally. Fidelity must be the sole refiner of Zimbabwean gold. We are saying, when we talk about prices of gold in Zimbabwe, it is international. Most of our gold, if it goes down South, if it is smuggled, whatever and whichever means, we are asking the Minister of Finance to incentivise the production of gold. The country that has got gold, we want to base, if we have to borrow money off shore, we have such an amount of gold with us. We will say whatever we are boning against this gold, we are not going to be crying babies forever.

We have got a lot of gold in this country. If we want to participate in gold mining, we want now to say, the formalisation of the korokozas must be done in a manner and way that ZESA must be taken to those that are in the remote areas, like where I come from. We have got a lot of artisanal or actual miners. If ZESA is put there and mills are put in place, those makorokozas will now dig the ore with the help of the Ministry of Mines. They take them to the mills and Fidelity is there at the mills and they collect the gold.

It will not surprise us that this year alone, we would be able to produce over 30 tonnes of gold. The leakages are there because the Government of National Unity, for the last five years, was like a beehive where bees and flies would be making same honey, and no one eats it. So this time around, with this Government of ZANU PF, with an eligible minister who we have, we intend to produce more gold. Our economy will turn around. Beneficiation, if need be, if it is permissible, the Minister of Finance will now say fine, why do we not make coins of gold instead of using American dollars. We use our coins, and it will be given money its worth. If it is an ounce, an ounce will be so much money and that is that. Then, we trade in gold. I want to thank you Mr. Speaker Sir, for having given me this opportunity to air my views.

MR. CHIBAYA: I want to thank you Hon. Speaker for recognising me. I think if we look at our watch, it is almost 10.00 pm. Hon. Minister, this shows the seriousness of hon. members in this august House. I am not going to take much of your time but there is only one issue which I feel is important, which I want to touch on. Parliament is one of the pillars of State. I am quite sure that as Parliament or as legislators, we have got three roles. The representative role, the oversight role and that of making laws, but, if you look to the money that was allocated to Parliament of Zimbabwe, I am sure hon. members sometimes, we do not need to just hackle where it is not necessary. -[HON. MEMBERS: Inaudible interjections]-

Mr. Speaker, I am sure that we benefited when you organized that budget workshop at Rainbow Towers. If I heard you correctly, you actually indicated to us that you had budgeted for about US$38 million and as Parliament, you were only given US$23 million. The hon. members in this august House will agree with me that after this Parliament, they will go to third floor to queue for coupons which are not there. I just stand up here Mr. Speaker to represent all those hon. members in this august House. This is a serious issue and I am sure they can make noise but as you go out of this august House, all of them will come to me.

All Portfolio Committees will want to go and visit various projects that are being done by the ministry. But, if we do not have money as Parliament, we cannot do anything. If our coffers are dry hon. members, we cannot do anything. I would want to appeal to the hon. minister, Hon. Antony Chinamasa, if he can consider increasing our budget as Parliament of Zimbabwe.

The salaries we are getting are low and also the salaries that our staff are getting as hon. members including myself are low including the salaries that our staff are getting. To be honest, it is not motivational, it actually de-motivates. The truth of the matter is that sometimes it is difficult to represent people when your stomach is empty. My colleagues in this august House who are here for the first term and will want to come for a second term like myself, for me to come for a second term, people would want to see me doing something that is physical. They expect you to bury people, send their children to school - [HON MEMBERS: Inaudible interjections] - I am very happy that the noise they are making is actually supporting me.

Hon minister, if we are to compare our salaries with what is being paid to our colleagues in the SADC region, I am sure you will agree with me that we are actually lowly paid. So, I am requesting the hon minister to consider our plight as Members of Parliament and also that of our staff of Parliament. I would like to thank you Mr. Speaker, for giving me this opportunity.

MR. MUTSEYAMI: I would like to add my voice to this cause of the national budget. I will talk about the issue of the war veterans, those who fought for the liberation of this country. I think it must be put on record for the fair hearing of the House that my father died a Major, so it must be stressed to you for those who claim to be war veterans alone. He died a Major called John Salami Mutseyami, he served this country.

We have an Act of Parliament which prescribes the ministry to allocate monies for projects to the war veterans. Ever since the enactment of this clause, no allocation has been done to that effect, for war veterans to move into projects for their survival and for empowerment in whatever respect for the past 15 years. Specifically looking into the ministry, I am a member of a Committee for Home Affairs and Defence and we have a challenge with the allocation done.

The hon. minister through you Mr. Speaker Sir, the allocation which was done for the school fees of the war veterans - is really a challenge. The money which has been allocated to them is US$18 million which caters for their welfare. Of the US$18 million, the last term's fees is accruing to US$10 million of which they are left with US$8 million which cannot cater for the new year for all the kids who are going to schools of the war veterans. Hon. minister, please can you kindly look into this matter as a matter of importance so that we have a way forward. Hon. minister, through you Mr. Speaker, with the allocation having been done for the medical support, rehabilitation to the war veterans, there is a challenge. Investment has not been done much into rehabilitation of the war veterans who have had problems as a result of going to war. If you can invest in the psycho-social for the war veterans, that will go a long way in their rehabilitation, up keep as well for their good living.

Hon. minister, we have had challenges across the country with regard to the burying of war veterans. This is as a result of lack of administrative offices in districts. There are no administrative offices and districts, we only have administrative offices at provincial levels with only one vehicle. The issue of supervising the administration aspect of war veterans - is really a challenge, specifically looking at the war veterans. The hon. minister may look into this, as a matter of priority with the idea that the liberation war heroes liberated this country and I think it is good for them to enjoy the best of this country. For the good cause that we have come a long way the whole day, Hon. Minister, I would appeal to you to look into this issue seriously. I thank you.

*MS. CHIMENE: Mr. Speaker Sir, thank you very much for giving me this chance to add my voice especially on the issue which has been recently debated. As a war veteran, I am so touched and so disturbed. I know there are other war veterans in here and if this is to do with us the living, we will respect the dead with a song.

Broke into a song (vazhinji navzhinji takavafushira).

Mr. Speaker Sir, this coming from the opposition, if it is not a joke, we receive it. Thank you very much.

+MS. R. MPOFU: Thank you Mr. Speaker Sir. Firstly, I would like to congratulate the President, Cde. R. G. Mugabe for winning the elections on 31st July, 2013. I would also like to congratulate him for appointing Minister Chinamasa, a brave and brilliant leader who knows where he is coming from and where he is going. I support the minister's budget. He is not the only one who crafted this budget. This is a manifesto for ZANU PF, the ruling party. This budget, I am sorry to say, whether you like it or not is for everyone and all black people should accept this budget which was crafted from ZIM ASSET. It is not ZANU PF only that crafted ZIM ASSET, but Zimbabwe was destroyed by the British. The sanctions are there and they are killing us. We are all aware that the sanctions are there.

Where is Biti now, why is it that he failed. He failed because of sanctions which were imposed by the British on us. People continue to say there are no sanctions but they are there and they are affecting all of us. What is required here is to know that an African is an African. The British must go back to their homes with their sanctions. We fought for this country. Women must unite and accept this budget, even though we were not allocated a lot of money. This budget is affected by sanctions and all of us blacks are affected. It does not matter which party you are affiliated to, the sanctions are affecting everyone and they are just as good as satan. The sanctions must go, must go, must go.

You are all now saying Chinamasa but where was Biti all this time. Mr. Speaker Sir, I am not criticising anyone. I know we all want vehicles and so we must assist Minister Chinamasa by embracing ZIM ASSET. The young, old, men and women should all embrace ZIM ASSET.

We have to build dams and start our irrigation schemes. We must all support ZimAsset. Mr. Speaker Sir, I love everyone and I will come out in the open. All hon. members are here to represent the people despite the different parties that we come from. We all fought for this country. We are not here to play but we are here to rebuild the country. We are talking about sanctions here. Let us all work together as one but do not degrade me.

Some people died for this country and blood was shed for this country and now you are saying you do not want grade zero. What are you, the educated doing? Selling out the country? You do not sell your country. Some of us were assaulted but we have forgiven each other. We must come together and fight this creature called sanctions. It is not Chinamasa's fault. Biti was there and he also failed.

Mr. Speaker Sir, let us unite. I am one of you though I cannot see but that does not mean I am crippled. It is just that I cannot see but I can use my brains. As for you, you can see and talk. I am saying in Jesus' name sanctions must go.

Lastly, I would like to say the President is not ruling this country on his own but it is Jesus Christ and Mbuya Nehanda. Let us all come together and rebuild this country.

MR. MADZIMURE : -[HON MEMBERS: Ambotaura uyu. Rega titaurewo]

MR. SPEAKER : He spoke on the other motion and not this one.

MR. MADZIMURE : Thank you Mr. Speaker for your guidance. I am not a new comer into ParliamentI have been here long before. I have got a few issues to raise with the minister, but the first one refers to the issue of war veterans - [AN HON MEMBER: Gara pasi.]- Tinokunyarayi muno umu.

MR. MATANGIRA : On a point of order! The hon member said to the hon member sitting as mupfanha. It is unparliamentary.

MR. SPEAKER : Hon. Member can you withdraw the statement please.

MR. MADZIMURE : Thank you Mr. Speaker, the issue that I wanted to add my voice is to do with the issue of war veterans. We still have got living war veterans who still bear scars -[HON MEMBERS: Haana kuwithdrawer].

MR. SPEAKER : Order! Did you withdraw?

MR. MADZIMURE : I did not say that.

MR. SPEAKER : Anything in the record? We will have to play the record otherwise it was not very clear.

MR. MADZIMURE : I just wanted to say, Mr. Speaker we have war veterans who are alive who still bear scars that they received during the war. When war veterans attempted to demonstrate towards the end of the year because of certain obligations that the Government of Zimbabwe should meet as far as war veterans are concerned, even dogs were set on the war veterans.

The last time that the war veterans demonstrated at the offices of the Minister of Finance, there were no police. Even the Minister of Finance was brave enough to get out of his office and meet the war veterans. He discussed with the war veterans and gave them assurances that he met. That was Hon. Biti. We have war veterans right now vanokwereta zvimbadzo from their own associations. It must be on record, if I am saying lies and I can be charged. War veterans receive zvimbadzo - real war veterans and not people who pretend to love war veterans. They use war veterans when they want to get into power.

I have lived with war veterans and even in my family, I have got war veterans who have been used during elections who appear on television. I am talking about something that I know. I lived with war veterans and I even visited war veterans who had been captured when they were at Bindura. I was even there when I saw some of them being taken away going to be thrown into the pits. When we are talking about war veterans, I think it is important that we really say what we mean.

MR. HOLDER : I just want to find out. Is this to do with the budget?

MR. SPEAKER : Will the hon member address himself and not in general terms please.

MR. MADZIMURE : I am referring to the welfare of war veterans and I am saying this to emphasise the point that when we talk about war veterans, we must not pay lip service.

MR. HOLDER : I think this particular topic was presented to the committee. The reason why I am asking is it to do with the budget. He needs to answer yes or no.

MR. SPEAKER : I think the point of order, hon member here is that you should not repeat what obviously has been already stated unless if you have got some new dimension. I say this in respect of Standing Order Number 75 which is quite clear that repetitious debate should not be allowed. If the hon member can bring out a new dimension.

MR. MADZIMURE : I rest my case as far as that issue is concerned. What I know is that some of these issues when they are raised, are like thorns in mud. Mr. Speaker, I was going to deal more on the minister's assumption

MR SPEAKER : May I advise the hon member that you do not argue against the ruling of the Chair.

MR. MADZIMURE : The issues that I wanted to raise with the minister are the relationship especially between ZIM ASSET and the budget. If you look closely at ZIM ASSET, the value attached to ZIM ASSET is US$42bn. If you look at our budget Mr. Speaker, the total budget is $4.1 billion. Forty two billion dollars translates to about eight billion dollars that should be spent on a yearly basis for us to achieve the aspirations in ZIM ASSET. But, if you look at the budget, especially for this year, 2014, you will find that what is left for the actual development, which is the money that we expect to meet the expectations under ZIM ASSET is $1.1 billion.

Out of the $1.1 billion, there is already an overrun from last year because we have suppliers that we have not paid and if you add up, you will find that we are now running to about $400 million. If you subtract $400 million from the $1.1 billion, we are left with about $600 million. That is what we expect to use, whether it is $700 or $800 million that is what we expect to use for the development of this country. But, there are also issues to do with the development itself because, what we now have is a situation where we need a lot of money to repair the infrastructure that we already have.

If we look at our roads Mr. Speaker, they are in a very bad state. If you look at our buildings, they are in a bad state. So, effectively, Mr. Speaker, there is virtually nothing that we can say will go towards ZIM ASSET. We also have some expenditures that will come, which under normal circumstances, are not expected but obviously because of the natural developments, we will have those expenditures.

So, Mr. Speaker, the situation that we have here is that almost nothing will go towards ZIM ASSET. Most of our money will go towards recurrent expenditure. We cannot continue to have a situation where we use 75% of the budget to cater for people like ourselves who are Government employees and are almost 2% of the population. Therefore, it is important that we focus more on creating more wealth. This year alone, the CZI says, about 50% of those companies that were operating last year may not open again.

What does that say to the 20% that we get as pay as you earn? It means that 20% that we got from the pay as you earn in the year 2013, this year we may get 10 to 15%. How are we going to close that gap? So, it is important that a real plan is put in place to make sure that industry continues. The more we close more companies, the more we have a deficit on our balance sheet. We are going to continue importing more goods and exporting less and less. Where are we going to continue getting the money to import from?

The minister seems to be saying, the deficit is not in strict sense a deficit because most of the monies that fund imports, he suspects that it comes from the diaspora remittances. Mr. Speaker, it is important that we talk about remittances and say, how can we harness the remittances so that they go through our banking systems. It is important that, confidence that is required for people to use the banks, the minister takes measures to have that confidence given back to our people.

It is important for a nation to understand where all their resources are coming from. It is dangerous for us to assume that some of the money that we use to import comes from even gold smugglers. If there is any feeling that some of the money comes from that source, then we must make sure that the budget addresses the issue of leakages and close those leakages. It is important that the minister does that because the issue of the supply side of our budget must be addressed and addressed fully. I thank you Mr. Speaker for this opportunity.

*MR. CHINOTIMBA: Thank you Mr. Speaker Sir. I would want to first thank Minister Chinamasa for his intelligence during the times of difficulties or the difficulties that the country is facing so that he can come up with this budget for this year.

I do not want to go in detail but save to thank him. I was touched by what Hon. Mutseyami said. We are all members of the same Portfolio Committee of Defence and Home Affairs. He may be a member of the opposition but what he has said is painful. I cannot repeat it because he said it all. What he has just left out is the amount that is allocated to the Ministry of Defence in terms of landmines. We have a lot of landmines that are killing people in Zimbabwe. There is also the issue of the reburial of war veterans in Zimbabwe. He has mentioned that some people were killed during the war and they were thrown into mine shafts. Since last year, the Minister of Finance, when Mr. Biti was still there, we appealed to him that the Government should assist us with funding to rebury these people which they are now accepting as the opposition party. They are now saying that it is touching them as well. If they are being touched, we have been requesting that funding since last year.

Whether a person is a war veteran or not, if the bones of a human being are exposed, we will have certain disasters. The rains will not fall because the bones of a person are sacred. From the Bible that I read, Moses said that, when I die, carry my bones and bury them properly. We have war veterans that died in this country and they require to be buried and there is no funding for that despite the fact that it is well known that those we need to rebury are in deed war veterans. I urge members of the opposition to be in the mould of Hon. Mutseyami if he is sincere. If they were to do that, everything would go well and our economy will move to better levels.

The point is that, when we have discussion here, they pretend to understand.

MR. SPEAKER: Hon. member, you are now vacillating from one language to the other. Speak in Shona.

*MR. CHINOTIMBA: Thank you Mr. Speaker Sir. Some of these things are painful. You saw the lady Member of Parliament crying and I as a former liberation war veteran, it hurts me. When the minister allocates funds for Ministry of Defence, why should we not revert to the old days so that we do not become part and parcel of that ministry because of that allocation? We then run the risk of being branded as people who are power hungry. If we could stand alone, maybe that could be the solution to this problem.

We do not see anything bad about the wisdom because we are members of the same forces. The intelligence that we have is not borne by such people like Hon. Mutseyami because he said his father was a war veteran. His father was a soldier and I hope he was teaching him about the difficulties he was encountering during the war. I hope that he was being sincere and he will be able to tell his colleagues in the MDC to support the war veterans.

I would want to thank the Hon. Minister of Finance in the manner in which he diligently performed his duty during a time when the economy is in troubled waters. The collapse of the economy did not start from the allegations that are being made that we destroyed the economy. The difficulty that I had was that most of the trade union members have already left this august Assembly but the decay of the economy was not caused by ZANU PF per se. The ailing of the economy started in 1999 to 2000 when the MDC Party was formed. When this Party was formed, it was not properly set up like what the NCA of Madhukus is doing. It was formed in a rude manner and it was based on destroying this country. This country was shaken and I say so because of what happened. Stores were burnt; people were assaulted and there was looting in the shops.

This was caused by the then General Secretary of the Zimbabwe Congress of Trade Union who was Morgan Tsvangirai. He was at the forefront of destroying the economy of this country in 1999 to 2000. I am sorry, I am the President of the Zimbabwe Federation of Trade Unions. When I woke up from my slumber, I realised that we had to come up with this because they say that Chinotimba is not educated. We are educated but we do not show it - [laughter]- and we showed them.

I thank you the Minister of Finance. My standing up here was because we thought that as Members of Parliament we have seen what is there. I was pained to hear that there is need for foreign direct investment in a country that we suffered for. The foreign direct investment is that we are getting from China but they in turn want their friends from the USA that do not like this country. We say let us be united and go to foreign donors, in Britain they do not want.

When we tell them that the country is under siege from sanctions, they deny it but they are saying the war veterans that would have died should be buried properly. How can they be buried when there is no funding? I feel pained about the minister who crafted the budget during difficult times. It is true that the budget is bad, we cannot deny it but we are saying that it should be allowed to sail through with the defects that it has. If possible, it should be passed today. It would have been proper that we pass the budget today so that we put an end to this issue. Children are not going to school because they are waiting for the budget to be passed. Whether some of us criticise the budget or support it, at the end, the two thirds majority is needed to pass the budget. Whether they are present or not, its fanana business will move on.

The Bible says in Psalms 50 verse 13 that "you as a person, I saw you and when your mother is being insulted you will be present. I saw you hurting your own brother. I saw you gossiping about your own brother", which the MDC are doing about Robert Mugabe. They go to European countries -

MR. MAHLANGU: On a point of order Mr. Speaker Sir. I think we are discussing a national budget of this country and we have to be serious. We are not here to discuss an MDC budget. The hon. member seem to be discussing about Tsvangirai and the MDC. We are not here for that but we are here for serious business. Thank you Mr. Speaker Sir.

MR. SPEAKER: Order, order. I think the hon. member was winding on the issue of external factors that impinge upon the budget. So if you could complete your debate.

*MR. CHINOTIMBA: Thank you Mr. Speaker. I want to proceed and I am not insulting anyone. I am talking about unity amongst the MPs and unity in our country. What I am trying to say

is that we should be united, and act as united people. I made reference to the Bible so that you could understand that God hates people who go and back bite. I am proposing that the budget should not take long but should be concluded today. The position that I want to say is that hon. members, the budget is now here and Hon. Chinamasa should be supported ten times over. I thank you.

*MR. MUKWANGWARIWA: I am in support of this budget, I heard Hon. Madzimure saying the budget that was done by the Minister of Finance and Economic Development, Hon. Chinamasa does not address ZIM ASSET, I want to place it on record, if you go to page 67 of the ZIM ASSET, the issue of power generation, we have just passed the signing of this loan that it covers Hwange and Kariba. They have said that those who want to come to Zimbabwe after opening up tenders should come and invest. In terms of the economy of this country…

MR. MUTSEYAMI: On a point of order Mr. Speaker. The hon. member is not addressing the issue of budget. He is now stressing on a workshop to do with ZIM ASSET.

MR. SPEAKER: The point of order is misdirected. The hon. member is trying to demonstrate that the budget actually does impinge upon ZIM ASSET and again, the hon. member was just giving an example.

*MR. MUKWANGWARIWA: I urge the Minister of Finance to look at the issue of pensions that there be sufficient funding for pensioners rather. The relevant ministry should have adequate funding. There are some people who are pensioners who have not received any of their pensions and are suffering in the communal areas.

I also want to thank Hon. Chinotimba. I support what he has said and share the same sentiments that we should summarise and pass the budget today.

THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (MR. MNANGAGWA): Mr. Speaker Sir, I have no doubt that colleagues here will agree with me that you have afforded us ample time to debate the Budget. I have no doubt that the majority of those who wanted to express themselves have done so. We have reached a stage where there is more repetition than constructive debate being produced in the House. For that reason, I move that the debate be now adjourn.

Motion put and agreed to.

Debate to resume: Tuesday, 28th January, 2014.

On the motion of THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (MR. MNANGAGWA), the House adjourned at Seventeen Minutes to Eleven o'clock p.m. until Tuesday, 28th January, 2014.

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National Assembly Hansard Vol. 40 NATIONAL ASSEMBLY HANSARD - 23 JANUARY 2013 VOL. 40 NO. 25