NAMC Application for Statutory measures in Wine Industry: deliberations
NCOP Agriculture, Land Reform and Mineral Resources
13 November 2001
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LAND AND ENVIRONMENTAL AFFAIRS SELECT COMMITTEE
13 November 2001
NAMC APPLICATION FOR STATUTORY MEASURES IN WINE INDUSTRY: DELIBERATIONS
Chairperson: Rev P. Moatshe
Documents handed out:
Draft Submission to the Minister: the Implementation of the Continuation of
Statutory Measures in the Wine Industry (National Agricultural Marketing
Council)
SUMMARY
Mr I. Bezuidenhout presented the National Agricultural Marketing Council's
(NAMC) application for statutory measures in the wine industry to the
Committee. Following a short period of questions they waited for the arrival of
enough members for a quorum. When sufficient members had arrived to constitute
a quorum, the Committee approved the application for the levy. Â
MINUTES
The Chairperson welcomed the members of the Committee and mentioned his
concern about a sufficient number of members being present for a quorum. He welcomed Mr Bezuidenhout of the NAMC to
speak to the members on the wine levy application.
NAMC Application for Statutory Measures in the Wine Industry
Mr Bezuidenhout stated that the Wine Industry Forum applied for statutory
measures in July 2001, in accordance with the Marketing Act. The NAMC believed that the requests were
indeed consistent with the statutes of the Marketing Act, as the objectives
worked towards increasing market access for all market participants, promoting
the efficiency of the marketing of agricultural products, optimising export
earnings from agricultural products, and enhancing the viability of the
agricultural sector. He added that the
NAMC believed that the approval conditions set by the Minister had also been
met. The levy would be applied to
grapes for wine, grape juice in concentrate for wine production, packaged drinking
wine and wine spirits. On each of these would be a levy for research and
development, information and wine export generic promotion. Mr Bezuidenhout stated that it was necessary
to promote each of these areas in order to create a more viable industry. 80% of the fund would have to be used for
improvements in the business, a maximum of 10% could be used for
administration, and a minimum of 10% would have to go towards transformation. Other conditions of the NAMC included that
all businesses in the wine industry would have to provide the NAMC with updates
and information on the process every year.Â
Discussion
The Chairperson welcomed the members to ask questions or make comments.
Mr A. Van Niekerk (NNP) stated that these levy applications were brought before
the Committee so that they could ensure that levies were not used to keep
incomers out of the industry. He said
that he was very happy that this proposal would most certainly not do that. He then asked whether the levies would be
used primarily in particular areas or if there was a way to be certain that
levies from one area would not be used to subsidise the industry in
another. He also commented that, though
they were not in a position to make an amendment, he thought it important that
the Committee add a suggestion that surplus funds from this levy only be used
within the wine industry specifically.Â
Mr Bezuidenhout replied that the funds collected would only be used in the
province where they were collected.Â
Rev M. Chabaku (ANC) stated that she was fully in favor of the application, but
she was concerned with how the industry treated seasonal workers and whether
wages were sufficient. The issue of how
work was conducted in the wine industry was of interest to her.
Mr Van Niekerk replied that, though it was an important issue, it was not
applicable to this discussion.
After waiting for an additional member to arrive so that the Committee quorum
could be met, the Chairperson read the motion of approval on the NAMC levy
application with the suggestion that surplus funds be used only within the
industry and the members approved. The
meeting was adjourned.
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