COMMISSION ON SOCIAL SECURITY

PANEL

Chair: Chez Milani
Presenter: Randall Howard (Labour)

RESPONDENTS

Business: Elize Strydom
Community:Petronella Linders
Government:Fezile Makiwane

RAPPORTEURS

Siphiwe Mabaso and Joy Smith

1. Welcome and opening

The chairperson opened the commission and welcomed all present. He clarified the theme of the Commission and introduced the Speaker and the Respondents.

2. Summary of issues raised by Randall Howard

2.1 The intention of the Constitution is to afford all people socio-economic rights. This places a huge legal and social obligation on Government to address this issue.

2.2 Access to social assistance for those unable to support themselves and their dependents is a fundamental human right enshrined in the Bill of Rights of the Constitution. It is one of the socio-economic rights recognised by the Constitutional Court as critical to the transformation of our society.

2.3 Section 27(1)(c) of the Constitution entrenches the right of everyone to have access to social security, including, if they are unable to support themselves and their dependents, appropriate social assistance.

2.4 In terms of Section 27(2) of the Constitution, the state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right.

2.5 Section 28(1) of the Constitution recognises the particular rights of children under the age of 18 years. These include rights to basic nutrition, shelter, basic health care services and social services. This imposes an additional burden on the state to prioritise the satisfaction of children's social security needs.

2.6 In terms of Section 7(2) of the Constitution, the state must respect, protect, promote and fulfil the rights in the Bill of Rights.

2.7 In terms of International Law which South Africa has ratified, South Africa is obliged to give effect to the right to social security in terms of the Convention on the Rights of the Child, the Convention on the Elimination of all forms of Discrimination against Women and the International Covenant on Economic, Social and Cultural Rights.

2.8 As the Constitution is the Supreme Law of the country, all laws, policies and programmes that effect people's access to social security must be measured against its requirements, thus the Social Security Report (Taylor Report) attempts to give credence to that Constitutional obligation.

2.9 Key socio indicators indicate that 45% - 50% of South Africans live in poverty.

2.10 Income distribution in South Africa is highly unequal.

2.11 There is high unemployment, including the massive net loss of formal sector jobs.

2.12 The HIV/AIDS epidemic will deepen poverty

2.13 The existing programme of Social Assistance is considerably high cost relative to its level of social effectiveness.

2.14 The key challenge is to find an effective way to reduce poverty in our country.

2.15 The Basic Income Grant (BIG) as recommended by the Commission is based on a reality that South Africa's social deficit is growing.

2.16 Whist there may be many challenges against BIG there is agreement amongst the major key stakeholders that there was a need for a Comprehensive Social Security System and a co-ordinated response to the countries' social problems.

2.17 There is no income support system for certain sectors of our population due to the fact that our Social Security system is inadequate and ineffective.

2.18 The argument raised against the recommendation that a sum of R100 per month be provided as a Basic Income Grant is not sustainable because international experience shows that BIG payments can stimulate the economy. This is contrary to the argument that people might become dependent on BIG.

2.19 Government was to finalise the Social Security Policy in January 2003

3. SUMMARY OF THE RESPONSE BY ELIZE STRYDOM

3.1 There is a need to address the plight of people living below the poverty line. A person who has access to or earns less than R400 per month is deemed to be living below the poverty line.

3.2 It is estimated that BIG would cost about R7 Billion per year which could either be through insurance or through tax.

3.3 The Taylor Commission accepted that a perfectly targeted grant that is properly administered to ensure that it benefits the people it is intended to and that would be monitored would go a long way in addressing the problem.

3.4 Experience has shown that BIG creates a culture of reliance that becomes a norm for generations.

3.5 BIG would eventually create a lack of self-esteem.

3.6 The following proposals were raised:

• Full take -up of the existing Social Security Grants.
• The Child Grant is extended from 6 years to 18 years.
• Institute a Public Works Programme that links the development of skills to empower people to develop themselves after the completion of the programme.
• Accelerate the School Feeding Scheme Programme.
• Look into the issue of job creation.

4. SUMMARY OF THE RESPONSE BY PETRONELLA LINDERS

4.1 Concern was expressed that whilst the Constitution recognises that children have a right to social services, children remain the most marginalised section of our population.

4.2 BIG would enable people to look for work rather than make people reliant and not look for work. BIG would provide a guaranteed constant income to households living below the poverty line.

4.3 BIG should not be seen as the only solution but should rather be seen as part of a package that should include the disability grant and other grants.

4.4 The Public Works Programmes have created dependency and when the programmes are terminated, it creates misery for the people who are dependent on them.

4.5 A comprehensive programme with guaranteed employment for 2 years or more is proposed.

4.6 The proposal that the Child Support Grant be extended from 6 years to 18 years is supported, but that the extension should not be seen as the replacement for BIG.

4.7 Similarly in the case of people with disability, BIG should not be seen as a replacement for the Disability Grant but rather as an addition.

4.8 Currently Social Security emphasises social assistance and the minority benefits from social insurance.

4.9 Research should be conducted into how much the current state of poverty is costing South Africa today.

5. SUMMARY OF THE RESPONSE BY FEZILE MAKIWANE

5.1 Government has not yet taken any decision regarding the report on Social Security and it would be discussed during a extended Cabinet Meeting in January 2003.

5.2 He understands the term Social Security to mean, "any programme that the society puts up to prevent individuals from falling into destitution".

5.3 From a South African context of Social Transformation, the key principle values that should underpin our society's Social Security are:

• Human Rights approach.
• The State should come in where people cannot support themselves and those who have the means should provide for themselves.
• Affordability, as there would be no point in putting up something that we cannot afford and therefore we must ascertain sustainability and affordability as we are a developing country.

5.4 Regarding BIG, he said that Government had accepted that poverty has many dimensions and cannot be resolved with the use of one instrument. There is a need to address income poverty, asset poverty and capability poverty, this requires a strategy to have balance between these.

5.5 There is a need to come up with Income Support Measures, that is cash transfers to individuals, which would get individuals out of the poverty cycle.

5.6 Income generating measures which would include Relief and Public Works Programmes. People lose skills, as they are unable to fund themselves.

5.7 Providing instruments to provide Social Security as provided for in the Constitution and terms of International Law and Conventions such as, the Convention on the Rights of the Child, the Convention on the elimination of all forms of discrimination against women and the International Covenant on Economic, Social and Cultural Rights would cost R60 - R80 billion.

5.8 Parties need to jointly look at mechanisms that should be put in place to eradicate and alleviate poverty.

5.9 If the Child Support Grant is to be increased, affordability needs to be taken into account.

6. THEMES OF THE DISCUSSION

6.1 A comment was made that there was convergence amongst key stakeholders about the need for a Comprehensive and Integrated Social Security System. However, the key issue around BIG was the affordability.

6.2. Labour's initiatives around Social Security

Labour had taken up the issue of Social security at industry level as well as in negotiations with Government. Whilst the matter had not been handled in a properly co-ordinated way, the question was discussed in every strategic meeting.

• Unions have convened workshops and distributed pamphlets on Social Security.
• Labour was not convinced that BIG would create dependency as even domestic workers earn a minimum wage of above R400, and therefore people would rather look for work than to depend on a R100 grant.
• Government can make a political decision to support BIG.

6.3. Business' contribution to Social Security

Employers are doing a lot regarding the issue of social assistance and the issue of social welfare. Many employers pay into the Unemployment Insurance Fund (UIF) and Social Insurance and many employers pay maternity benefits and make further contributions through paid compassionate leave and pension.

6.4. Government's commitment to Social Security

Government work around Social Security is co-ordinated by five Cabinet Ministers and underneath the social clusters that make recommendations on various matters of Social Security. He further said that issues regarding efficiency and service delivery are key issues on the agenda of the Cabinet.

7. CONCLUSION

7.1. The Commission emerged with convergence on the following areas:

• The need for a Comprehensive and a Co-ordinated Social Security System.
• The need to eradicate and alleviate poverty.
• The need to come up with Income Support Measures that provide cash transfers to individuals, which will get individuals out of the poverty cycle. The need also for Income Generating measures which would include Relief or Public Works Programmes.
• The extension of the Child Support Grant from 6 years to 18 years though the details regarding funding needed to be discussed.
• The implementation of BIG was in principle agreed to however it was doubted by Business and Government if BIG was affordable, parties agreed on the need to further discuss this aspect.