Traditional Leaders Amd; Remuneration of Public Office Bearers' 2nd Amd Bills: voting

Meeting report

PROVINCIAL AND LOCAL GOVERNMENT PORTFOLIO COMMITTEE
7 April 2000
NATIONAL HOUSE OF TRADITIONAL LEADERS AMENDMENT BILL; REMUNERATION OF PUBLIC OFFICE BEARERS SECOND AMENDMENT BILL

Documents handed out:
National House of Traditional Leaders Amendment Bill [B15 – 2000]
Remuneration of Public Office Bearers Second Amendment Bill (attached to end of minutes)
Remuneration of Public Office Bearers Act, 1998

SUMMARY
Chairperson: Mr YI Carrim
The National House of Traditional Leaders Amendment Bill and Remuneration of Public Office Bearers Amendment Bill were agreed to by the Committee.  The Committee is to vote on the two Bills on 11 April 2000.

MINUTES
The chairperson went through the two Bills clause by clause with the committee to establish the parties standing on each clause. Mr R Sizani, Deputy Director: Provincial and Local Government, represented the Department.

National House of Traditional Leaders Amendment Bill
Clause 1
Clause 1(a) was agreed to.

Clause 1(b) was agreed on with Ms G Borman (DP) noting her party’s reservations on the clause.

Mr P Smith (IFP) asked what had been the House of Traditional Leader’s concern if they had asked for the amendment.

Mr Sizani said that their concern was that in the Act there was nothing enabling them to remove the Chairperson if they wanted to.

Clause 2
Ms Borman said she did not agree with the provision that certain members be full-time members of the House because a full-time member is a paid member and this would amount to those members receiving double salaries.

Mr Sizani clarified that this would not happen as the Remuneration of Public Office Bearers Second Amendment Bill provides that a member of the House who holds different public offices simultaneously is entitled to only the salary, allowances and benefits of the public office for which he or she earns the highest income.

The clause was agreed to by all the parties.

Clauses 3 and 4
These clauses were agreed to by all the parties.

Remuneration of Public Office Bearers Second Amendment Bill
The Chairperson observed that the Bill is still with the State Law Advisor’s Office but the Committee could deliberate on it in the meantime.  The Chairperson went through the substantive amendments and Committee agreed to all the clauses of the Bill.

The Chairperson indicated that the voting on the Bills would take place on 11 April 2000.  The meeting was adjourned.

Appendix 1:

GENERAL EXPLANATORY NOTE:

[             ]         Words in bold type in square brackets indicate omissions from existing enactments.
_______        Words underlined with a solid line indicate insertions in existing enactments.


BILL

To amend the Remuneration of Public Office Bearers Act, 1998, so as to correct a cross-reference in respect of a definition; to make fresh provision regarding the payment of salaries and allowances of traditional leaders holding more than one public office simultaneously and the payment of allowances to traditional leaders; to exempt the Minister from consulting with the pension funds and medical aid schemes concerned when the upper limits of the contributions to the pension funds and medical aid schemes are determined; to provide that a Municipal Council determines the amount of the contribution to a pension fund or medical aid scheme to which its members belong; and to make certain textual alterations; and to provide for matters connected therewith.

BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:-

Amendment of section 1 of Act 20 of 1998

Section 1 of the Remuneration of Public Office Bearers Act, 1998 (Act No. 20 of 1998) (hereinafter referred to as the principal Act), is amended by the substitution for the definition of “traditional leader” of the following definition:

“’traditional leader’ means any person identified in term of section5[(4)](5).”.


Amendment of sections 5 of Act 20 of 1998

2.         Section 5 of the principal Act is amended-

(a)       by the substitution for subsection (2) of the following subsection:

“(2)      Despite the provisions of subsection (1), a traditional leader, a member of a provincial House of Traditional Leaders or a member of the National House of Traditional Leaders who holds different public offices simultaneously, is only entitled to the salary, allowances and benefits of the public office for which he or she earns the highest income, but-

(a)       this subsection shall not preclude the payment of out of pocket expenses for the performance of functions other than those for which such office bearer receives such highest income; and

(b)       where only an allowance has been determined in terms of subsection (1) in respect of a traditional leader's membership of a provincial House of Traditional Leaders or the National House of Traditional Leaders, such a traditional leader shall be entitled to such an allowance in addition to his or her salary, allowances and benefits as a traditional leader."; and

(b)       by the substitution in subsection (4) for the words "salaries and allowances" of the words "salaries, allowances and benefits".

Amendment of section 7 of Act 20 of 1998

3.         The English text of section 7 of the principal Act is amended by the substitution in subsection (2) for the words "Subject to" of the word "Despite".

Amendment of section 8 of Act 20 of 1998

4.         Section 8 of the principal Act is amended by the substitution for subsection (5) of the following subsection:

"(5)(a) The upper limit of the contribution to be made to the pension fund of which a member of a Municipal Council is a member, shall be determined by the Minister [after consultation with the pension fund concerned and] after taking into consideration the recommendations of the Commission.

(b)       The [Minister] Municipal Council, after consultation with the pension fund concerned, shall determine the amount of the contribution and such amount shall annually form a charge against and be paid from the budget of the municipality concerned.".

Amendment of section 9 of Act 20 of 1998

5.         Section 9 of the principal Act is amended by the substitution for subsection (5) of the following subsection:

"(5)(a) The upper limit of the contribution to be made to the medical aid scheme of which a member of a Municipal Council is a member, shall be determined by the Minister [after consultation with the medical aid scheme concerned and] after taking into consideration the recommendations of the Commission.

(b)       The [Minister] Municipal Council, after consultation with the medical aid scheme concerned, shall determine the amount of the contribution and such amount shall annually form a charge against and be paid from the budget of the municipality concerned.".

Substitution of expression in Act 20 of 1998

6.         The principal Act is amended by the substitution for the expression "Council of Traditional Leaders", wherever it occurs, of the expression "National House of Traditional Leaders".

Short title

7.         This Act shall be called the Remuneration of Public Office Bearers Second Amendment Act, 2000.

MEMORANDUM ON THE OBJECTS OF THE REMUNERATION OF PUBLIC OFFICE BEARERS SECOND AMENDMENT BILL, 2000

1.1       Section 5 of the Remuneration of Public Office Bearers Act, 1998 (Act No. 20 of 1998) (hereinafter referred to as “the Remuneration Act”), establishes a framework for determining the salaries, allowances and benefits of traditional leaders, members of provincial Houses of Traditional Leaders and members of the National House of Traditional Leaders. Although section 5(1) of the Remuneration Act, allows the President to determine salaries and allowances in respect of the above-mentioned office bearers, section 5(2) only allows an allowance to be determined in respect of a traditional leader's membership of a provincial House of Traditional Leaders or the National House of Traditional Leaders. In view of the Cabinet decision that certain members of the National House of Traditional Leaders are to be remunerated as full-time members of that House, it is necessary to allow salaries to be determined in respect of a traditional leader's membership of a House of Traditional Leaders or a Municipal Council, which in turn requires the introduction of a measure that will prevent the public office bearer concerned from receiving more than one salary.

1.2       In terms of sections 8 and 9 of the Remuneration Act, respectively, the Minister may only determine the upper limit of the contributions to be made to pension funds and medical aid schemes of which municipal councillors are members, after the Minister has consulted every pension fund and medical aid scheme concerned. It has been practically impossible for the Minister to engage in such consultations due to the number of pension funds and medical aid schemes, and the number of councillors. This has necessitated the amendments to these sections to provide for the consultations to be done by the Municipal Councils concerned, and not by the Minister. The effect being that the Minister only needs to take the recommendations of the Independent Commission for the Remuneration of Public Office-bearers into account in determining the upper limits of contributions to pension funds and medical aid schemes, whilst the respective Municipal Councils have to consult the relevant pension funds and medical aid schemes when the actual contributions are determined.

1.3       Irreconcilable differences between the two official texts of the Remuneration Act, as well as incorrect cross-references, are corrected.

2.1       Clause 1 of the Bill amends section 1 of the Remuneration Act by correcting an incorrect cross-reference.

2.2       Clause 2 of the Bill amends section 5 of the Remuneration Act by introducing the principle that a public office bearer who holds different public offices simultaneously shall be entitled to the salary, allowances or benefits of such office for which he or she receives the highest income.

2.3       Clause 3 of the Bill amend sections 7 of the Remuneration Act by correcting irreconcilable differences between the two texts of the Remuneration Act.

2.4       Clauses 4 and 5 of the Bill amends sections 8 and 9 of the Remuneration Act to exempt the Minister from consulting with the pension funds and medical aid schemes concerned when the upper limits of contributions to the pension funds and medical aid schemes to which councillors belong are determined. Provision is made for Municipal Councils to determine the actual amount of such contributions. Irreconcilable differences between the two texts of section 9 of the Remuneration Act are also corrected.

2.5       Clause 6 of the Bill amends the Remuneration Act to reflect the change of the name "Council of Traditional Leaders" to "National House of Traditional Leaders".
 
Bodies/Organisations consulted

National House of Traditional Leaders
MINMEC on Traditional Affairs

Implications for Provinces

None

Implications for Municipalities

Municipal Councils will have to consult with the relevant pension funds and medical aid schemes before determining the actual amount of the contributions to be made to pension funds and medical aid schemes to which the councillors concerned belong.

Parliamentary Procedures

The Department of Provincial and Local Government is of the opinion that the Bill must be dealt with in accordance with the procedure prescribed by section 75 of the Constitution. The Bill does not fall within a functional area listed in Schedule 4 to the Constitution, nor does it provide for legislation envisaged in the sections referred to in section 76(3) of the Constitution. Although the Bill provides for legislation envisaged in Chapter 13 of the Constitution, the Bill does not affect the financial interests of the provincial sphere of government.