South Africa’s street-activist-turned-minister-of-finance effortlessly cruised through his second budget this week, delivering the bad news with wit and the good news with his trademark Cheshire-cat grin.
It was a virtuoso performance by Trevor Manuel – except for the blaps at the end when he thanked President Nelson Mandela “in his absence” for his support. Mandela had been there from the start sipping Perrier water and absorbing how his finance minister intends walking the tightrope of a low-growth, pre-election economy.
Manuel swiftly reminded the house how last year the president had prompted him when he lost his place, but that this time he had been so silent. “My sincerest apologies,” he offered to Mandela and to guffawing parliamentarians.
Manuel could be excused for missing the president, having had to contend for the past hour with not only two teleprompters – hopelessly camouflaged by some plants – but also a written text on the lectern before him.
“We must root out corruption, which eats at the fabric of society. For that reason we must do everything in our power to uproot it in government and business,” Manuel said in halting Sesotho during his opening remarks. There were cheers from the ruling party and a few giggles from all, including Deputy President Thabo Mbeki, as Manuel wrestled with the vernacular.
Manuel gave special mentions only to Minister of Labour Tito Mboweni – for his successful labour-relations strategy – and, for less obvious reasons, to Minister of Housing Sankie Mthembi-Mahanyele, who applauded herself as Manuel celebrated her achievements in the housing field.
Minister of Water Affairs and Forestry Kader Asmal was the most demonstrative in his approbation for the individual department allocations, giving a small whistle of excitement when Manuel announced a hike in education spending to R6,5-billion.
Asmal, as is now the custom, took centre stage when Manuel turned to “sin taxes” and expressly apologised to the water minister as he announced hefty increases in cigarette tax. “Tax on cigarettes, Professor Asmal, will go up by 29%.”
Thabo Mbeki got off more lightly, with pipe tobacco going up an average of only R2,11/kg. Communications minister Jay Naidoo was the only minister who applauded as Manuel announced increases in tax on liquor – except for sorghum beer “because of the howls of disapproval last year from Dr [Mangosuthu] Buthelezi when I announced the charge on sorghum beer”.
Manuel’s colleagues giggled wryly when he announced his surprise decision to hit South Africa’s recently demutualised life assurers with a special tax.
Manuel explained how he had called in the heads of Old Mutual and Sanlam to announce the move that morning. “I want to express my appreciation for the manner in which they received the news.”
The minister was effusive in his praise for his team at the Ministry of Finance, led by his trusted lieutenant, Maria Ramos. “They have given up time and sleep – both theirs and mine,” he said, before lapping up a standing ovation.
Manuel’s mother, seated alongside Govan Mbeki, looked on admiringly as the ruling party filed out in a glow of self-congratulation. The opposition, meanwhile, sharpened its knives over what Democratic Party chief Tony Leon, momentarily unsure of his constituency, branded a budget that was “bad for the poor, the unemployed and the motorist”.