Money Bills Amendment Procedure and Related Matters Act

IMPLICATIONS OF THE MONEY BILLS AMENDMENT PROCEDURE AND RELATED MATTERS ACT NO 9 OF 2009 TO PARLIAMENT\PROVINCES PRESENTATION BY COMMITTEE SECTION 28 August 2009

Objectives of the Act Provides Parliament with procedure to amend money Bills. Provincial Legislatures may enact Legislation to provide for a procedure to amend money Bill (Schedule on norms & Standards for Provincial Legislatures).

Implications Establishes new committees Appropriation Committees in both Houses Finance Committees in both Houses Impact in the Parliamentary Programme More time to be allocated to Committees to be able to meet the deadlines mentioned in the Act.

Implications Impact in the manner in which Committees are functioning. - Committees to have coordinated approach when doing their work (conferral). This will save time. Financial implications. - establishment of new Committees - establishment of the Budget Office

Crucial dates for Parliament i.r.o the Budget Medium Term Budget Policy Statement – MTBPS – tabled in October Appropriation Bill & Division of Revenue Bill (DORA) – tabled in February (Provinces) Adjustments Appropriation Bill – tabled in October (together with MTBPS)

Budgetary Review & Recommendations Reports Before the adoption of the MTBPS by National Assembly (usually at the end November), all National Assembly\Portfolio Committees should review the performance of Departments they oversee and report to the House on their findings. The review should focus on effectiveness and efficiency of a Department on service delivery.

Implications Time be allocated to committees to review the performance of the Departments to be able to compile the Budgetary Review & Recommendation Report (BRRR). (2 weeks) Tools to do that: Annual report of Departments tabled at the end of September, monthly, quarterly expenditure reports published by Treasury, Auditor-General’s report & SCOPA findings etc.

Implications Committees to table their reports by mid October. Will the reports be formally referred to the Standing Committee on Appropriation? OR will they be informally referred thru the ATC? The Act is silent on involvement of NCOP Committees in the BRRR process. However the rules allows conferral by Committees. Therefore NA & NCOP Committee can jointly review the performance of Departments.

MTBPS Usually tabled at the end of October each year and referred to Finance & Appropriation Committees of both Houses. Committees must report after 30 working days which excludes Constituency period after the tabling of MTBPS. Committees may make recommendations to amend. Reports of Committees should be referred to the Minister within 7 working days after adoption by the House.

Implications In reality the process spills over to the second week of February. If MTBPS is tabled at the end of October: In November - 16 working days (12 hours per committee) In January – 8 working days (2 last weeks allocated to Committees) In February – 6 working days

Implications Parliament should debate the reports tabled by the Committees before referring them to the Minister within 7 working days. Minister will have a week to consider the recommendations made by Parliament before tabling the Budget (usually tabled 3rd week of February).Is this time sufficient?

Fiscal Framework & Revenue Proposals Tabled in February & referred to Finance Committees of both Houses. SC & ST on Finance to facilitate public participation (public hearings) jointly. Committees should report within16 days after the tabling of the National Budget to both Houses. The report must be clear whether they accept or amend. If a Committee amends, the relevant Minister should be given 2 days to respond on the proposed amendments.

Implications In reality Parliament have 14 working days to process the Fiscal Framework (2 days is for the Minister’s response) Public Participation? (nature: extensive or invite the usual stakeholders?) Fiscal framework should be adopted around the 3rd week of March.

Division of Revenue Bill (DORA) Section 76(1) After adoption of Fiscal Framework, DORA is referred to Standing Committee on Appropriations (NA). Parliament (NA & NCOP) should consider & report within 35 days after adoption of Fiscal Framework, which should be adopted during 3rd week of March.

Implications If strictly follows the 35 days of the Act, without applying the six week cycle of the NCOP, DORA will be finalised by the end of June. DORA has to follow a Section 76(1) procedure in terms of Constitution, therefore it has to follow six week cycle in the NCOP, which amounts to 30 working days.

Implications The six week cycle of NCOP leaves 5 working days for NA. 35 days includes 3 days to be given to the Minister to respond to the report of Committees if amendments are proposed. Therefore Parliament has 32 days to report.

Appropriation Bill After the adoption of Fiscal Framework, the Appropriation Bill must be referred to the ST on Appropriation of the NA. Should be passed by Parliament within four months after the start of the new financial year. This means by the end of July it should be passed by Parliament. Committees should facilitate public participation. Ministers should be given 10 days to respond to proposed amendments

Implications Referral of Appropriation Bill\Budget Votes to the relevant Committees should be done by 3rd week of March immediately after the adoption of Fiscal Framework. Time to be allocated to Committees to consider the Budget Votes referred (2 weeks in May, no plenaries) Committees to report to the House around 3rd week of May in order to accommodate Minister’s response before reporting to the House.

Implications If there are proposed amendments there will be sufficient time for the Minister to respond to proposed amendments. Time allocated to NCOP to consider & report on Appropriation Bill?

National Adjustments Budgets Tabled in October & referred to Finance Committees of both Houses. ST on Finance should report within 9 working days on revised Fiscal Framework. Minister should be given 2 days to respond to proposed amendments on Fiscal Framework. ST on Appropriation should report within 9 working days on revised DORA (NCOP processes, Mandating Procedure Act). Minister should be given 4 days to respond to DORA

Implications In reality, Committees have: 7 working days to report on the revised Fiscal Framework as 2 days is for Minister’s response. 5 working days to report on revised DORA as 4 days is for Minister’s response. Impact to the NCOP six weeks cycle (current practice, not following six weeks cycle) for DORA.

Implications If following the six week cycle as mandated by the Mandating Procedure Act during adjustments, in total the NCOP will need 60 working days in a Parliamentary programme to consider DORA (initial & revised format). Does NCOP need six week cycle for the revised DORA?

Any other Revenue Bill Is tabled & referred to relevant Committee. Minister should be given 14 days to respond to proposed amendments.

Implications of clustering the two Committees by NCOP? Workload from the two NA Committees Sharing of Membership with other NCOP Committees (i.e two Chairpersons of other Committees) Programme of Parliament (Provincial Weeks, taking Parliament\NCOP to the People)

Norms and standards for provincial legislatures A money Bill sent to the Premier for assent must be consistent with: - Fiscal Framework and DORA adopted by Parliament

Implementation In principle, the Bill can be implemented on the basis that: Parliamentary Programme is reviewed to accommodate the deadlines Committees review the manner in which they are functioning. There is healthy relationship between Parliament & the Executive. Availability of the Resources

Implementation BRRR can be implemented immediately without delay. THANK YOU