Full debate on how Finance Minister Mthuli Ncube was grilled in Parliament

HON. SIKHALA: Mr. Speaker Sir.  I was carefully listening when all other Ministers were answering questions from Hon. Members of Parliament.  I take strong reservations over the way the Minister of Finance and Economic…

THE HON. SPEAKER: The Hon. Minister of Finance and Economic Development.

HON. SIKHALA: The Hon. Minister of Finance, over the way he reacted to the question by Hon. Matambanadzo. He said, ‘I will answer the question’ though it was full of entertainment.  Mr. Speaker Sir, what the Hon. Ministers must understand is the principle of the separation of powers – the Executive, the Judiciary and the Legislature.  For them to be Ministers does not mean to say they are more superior than us – [HON. MEMBERS: Hear, hear.] – We are also an arm of Government in terms of the separation of powers, so when we ask questions in this House we plead with our Ministers to respect us. If they do not respect us we will also do the same to them – [HON. MEMBERS: Hear, hear.] –

THE HON. SPEAKER: Hon. Sikhala.

HON. SIKHALA: Yes, Mr. Speaker Sir.

THE HON. SPEAKER: Yes, your point is noted and I am sure the Hon. Minister understood – [HON. MEMBERS: Inaudible interjections.] –

HON. T. MLISWA:  On a point of clarity Mr. Speaker Sir.

THE HON. SPEAKER: What is your point of clarity?

HON. T. MLISWA: Mr. Speaker Sir, very clear the Minister did admit there is inflation when he was speaking, inflation has gone up. How then can he say the economy is doing well when inflation is going up?  It is then the only country in the world which says the economy is doing well when inflation is going up.  How does he respond to the inflation going up yet it should be going down. Inflation is a critical word and he said it is going up.  He said that inflation is going up and he said we are on track in dealing with the economy yet inflation is going up, it does not make sense. You have to tell us what sort of economy it is that when inflation is going up, the economy is doing well – [HON. MEMBERS: Inaudible interjections.] –

THE HON. SPEAKER: Order, Hon. Members. Hon. Minister, please clarify that issue raised by Hon. Mliswa.

HON. PROF. M. NCUBE: Mr. Speaker Sir, let me clarify on the issue that Hon. Mliswa raised.  Inflation is high. The last time we reported on it, it stood at about 66% on an annual basis. So it is high and I will be on record to say that inflation will remain high until about October this year, that is our prognosis – [HON. MEMBERS: Inaudible interjections.] – After that, it is expected to fall right into early next year.

Our reasons are as follows; the increase in inflation is also due to a technical factor in the sense that when the inflation picked up in October last year 2018 to about 16% just for that month alone, that shifted the index to a higher level and the way inflation is measured you always compare the level of index from the previous year to the current year.  If you take the index this time last year and you compare that to the index now you have that gap and that gap is the 66%.  If you work out the inflation on a month to month basis from January to February and March, that inflation level remains low and I would not be surprised if in effect it begins to decline and goes into negative – [HON. MEMBERS: With RTGs?] – While the year on year inflation is high, the month to month inflation is low and that is a technical explanation. I have been on record to say so and I put that on record – [HON. MEMBERS: Inaudible interjections.] –

An Hon. Member having stood up.

THE HON. SPEAKER: Why are you standing up?  If you do not want to go outside, please take your seat. If you want to follow the debate on the issue, please come up with a motion – [HON. MEMBERS: Inaudible interjections.] – Order Hon. Members! I am advised that the Hon. Minister will make a statement on the issue, so we will proceed after his statement accordingly.

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