Johannesburg - The DA says it is opposed to tax increases or a wealth tax to fund the zero-percent fee hike for next year because there was enough money in the Budget to make up the universities’ shortfall of around R2.6 billion.
This comes as the Presidency says it is engaging universities on various options to meet the 0% fee increase announcement made by President Jacob Zuma 10 days ago as #FeesMustFall student protests gathered at the Union Buildings.
Last month, Higher Education Minister Blade Nzimande said there was enough money for free university eduction, albeit in the private sector.
“The government must have the political will to tax the rich and wealthy to fund higher education,” Nzimande said during the parliamentary debate on higher education transformation. None of us must develop cold feet about the necessity of taxing the rich.”
On Friday, during a hearing on October’s medium-term budget policy statement (MTBPS) by the appropriations committee, the Human Sciences Research Council told MPs that without a wealth tax, free education was impossible.
But yesterday, DA MP and finance spokesman David Maynier said the party would oppose any additional taxes.
“The shortfall (for the zero percent fee increase) can be funded from within the existing Budget without any further tax increases or squeezing the private sector.”
Instead, the immediate impact of the no-fee increase next year would be mitigated by moving R720 million from the Department of International Relations’ allocation for its foreign missions. That could be absorbed by the department by cutting back on above normal salaries and closing offices that serve no strategic purpose.
While the academic year corresponds to the calendar year, the financial year runs from April 1 to March 31. For the 2016/17 financial year, a further R183.9m could be reallocated from various departments, which listed expenditure such as:
* Purchase of bulls for reproductive purposes (R540 000).
* Establishment of a South African Network for Women in Transport (R7.5m).
* Office furniture and critical security equipment for members of VIP protection (R26.5m).
* Guarding services rendered to the defence headquarters (R11.4m).
However, Maynier admitted that the DA’s proposal of shifting the R2bn earmarked as South Africa’s contribution to the National Development Bank, or Brics Bank, might not be an easy sell. “We might have an opportunity to reach an agreement on that,” he said.
The special appropriations bill for the bank is before Parliament. The money was raised from the government’s sale of its Vodacom shares, with the other R23bn allocated to the troubled power utility Eskom.
Under the Money Bills Amendment Procedure and Related Matters Act, Parliament has the power to amend budgetary allocations, including those announced in the MTBPS.
An agreement by both the National Assembly and the National Council of Provinces is needed following deliberations and recommendations from the respective Houses’ appropriations committees.
The process is under way and due to be completed this month, when the MTBPS and its related Adjustments Appropriations Bill are voted on.
Tomorrow, higher education funding, including free undergraduate studies, comes under the spotlight when the parliamentary appropriations committees meet the higher education committee, departmental officials and representatives of Business Unity South Africa.
The Presidency said there would be an announcement on a commission of inquiry on long-term funding solutions and broader transformation issues and access.
Such a commission comes in the wake of previous funding investigations, including a higher education 2012 report indicating free university education for poor students was possible, and another report on possible changes to the National Student Financial Aid Scheme, which is available to students from households with a joint R120 000 annual income.
POLITICAL BUREAU
THE STAR