Cape Town - The National Treasury is in support of the devolution of powers to provincial and local governments, despite the country’s president and the ANC opposition to the DA’s Western Cape Provincial Powers Bill.
In response to the Western Cape’s recommendations for amendments by the National Council of Provinces (NCOP) to the Division of Revenue Amendment Bill (DRAB), the National Treasury expressed its support for the devolution of rail, housing and bus services to capable provincial and local governments.
The DA’s Western Cape spokesperson on Budget, Deidré Baartman, said according to the response to the recommendation of the Western Cape budget committee that fiscal decentralisation be encouraged by the National Treasury to empower provinces and municipalities for more effective service delivery, the National Treasury is on record as supporting the devolution of rail, housing and bus service functions in a responsible and sustainable manner where capacity constraints are considered.
In response to the DA’s recommendations on the DRAB, the Treasury must encourage fiscal decentralisation to empower provinces and municipalities for more effective service delivery instead of promoting centralised fiscal control.
The Treasury said: “The recommendation is noted. The National Treasury is on record supporting the devolution of rail, housing and bus service functions in a responsible and sustainable manner where capacity constraints are considered. We believe that, where possible, local governments should have greater fiscal control to better manage the resources available to them and enhance their ability to provide essential services.”
It further stated that “we acknowledge the potential benefits of devolving certain powers to provinces and metros to achieve efficiency and improve service delivery.
“We will collaborate with relevant stakeholders to identify areas where this approach could be effective.
“For instance, we are exploring the devolution of certain provincial bus routes to the City of Cape Town. However, we will proceed cautiously to avoid any potential pitfalls along the way.”
Baartman said this was a clear indication that the tough fiscal realities of this national budget could have been better managed had capable governments like the Western Cape government been given additional power and subsequent funding over certain core functions of government.
“The DA in the Western Cape has for a number of years called for the devolution of certain powers from the national government, including policing, public transport, energy, trade and harbours.
“It is good to see that National Treasury has joined the Western Cape ‘WhatsApp group’, and I hope that they are able to help make the case for devolution to their colleagues in the national government,” said Baartman.
The ANC’s finance spokesperson in the province, Nomi Nkondlo, said it was worth noting that fiscal decentralisation was not new, as the current governance and fiscal framework provided for it.
“The RSA Constitution in Schedules 4 and 5 makes provision for the powers and functions of nationals and provinces, including concurrency. What we differ with the DA power grab through the back doors is to try to win what it is unable to secure through the ballot.”
She said: “We are vehemently opposed to the DA driving an agenda that takes us back to segregation and colonies. The National Treasury is a national department and thus bound by the Cabinet statement of August 30, 2023, as represented by the president.
“The DA Provincial Powers Bill has been declared unconstitutional by three legal opinions commissioned and shared with an internal multiparty oversight committee established by DA majority vote in the legislature,” Nkondlo said.