Committee Report on DTIC Quarter 4 Performance

Meeting report

Opening Remarks

The Chairperson welcomed the Committee and stated that the agenda was to look at the draft Report on the fourth quarter financial and non-financial report of the Department of Trade Industry and Competition (DTIC) and to consider minutes of previous meetings.

The agenda was adopted.

Committee Report on DTIC Quarter 4 Performance

The Chairperson stated that due to changes in the parliamentary programme, the Committee was not able to conclude its deliberations and adopt the report at the end of the second quarter therefore it was rescheduled for consideration in the third quarter. By 23 August 2022, only the ANC had submitted concluding remarks for consideration. The Committee will consider minutes from 31 May, 7 June, 8 June and 10 June 2022.

The Committee Secretary noted that no other party had submitted comments. The ANC submitted additional comments to the draft report.

The Committee Secretary took the Committee through the proposed conclusions of the ANC:

1. The Committee was of the view that unemployment remains a challenge and welcomed efforts by the DTIC and business to address this.

2. The Committee supports the implementation of the Master Plans as a tool of government, working with organised labour and business to unlock investments, increase exports, industrialise, and structurally transform the South African economy.

3. The Committee was concerned about the continuous underspending and the impact it may have on its programmes. This may hamper the implementation of its programmes and the development imperatives of government.

4. The Committee was concerned about the impact of the illegal exports of scrap metal and its impact on infrastructure. The Committee encouraged the DTIC, in conjunction with the South African Police Service and other relevant government departments, to expedite the development of additional measures to discourage scrapyard owners from purchasing stolen cables and other public infrastructure, including a possible ban on the export of scrap metal.

An additional comment was made by the ANC which welcomed the publishing of the draft policy on the temporary ban of scrap metal for public comments.

The period under review is the fourth quarter. The policy document was published after 31 March 2022 so it does not fall within the scope of the period under review. It would be better placed within the Budgetary Review and Recommendations (BRR) Report.

5. The Committee noted that there had been limited uptake of the Film and Television Incentive for the production of local stories. It was of the view that the DTIC should continue promoting the incentive to local producers given the multiplier effect on the upstream and downstream industries.

6. The Committee was concerned about the impact that the national lockdown had on black industrialists. It encouraged the DTIC to promote the Black Industrialist Programme to ensure greater uptake and to offer non-financial support to black industrialists to ensure their sustainability. Furthermore, the Committee requests the DTIC to reconsider the formulation of its key performance indicators in respect of its incentives to specify clear targets regarding the number of black industrialists to be approved for each financial year.

Amendments were made to this point for the sake of clarity.

7. The Committee welcomed the DTIC's proactive approach in monitoring the tender advertisements and bid documents to ensure that they specify the local content requirements for designated goods and services, and measures to ensure that government departments and entities implement these requirements

8. The Committee acknowledged the DTIC's efforts to engage National Treasury on the development of the new Public Procurement Bill in relation to localisation.

9. The Committee welcomed the DTIC's efforts to ensure beneficiation and black participation in the renewable and clean energy sector to assist in addressing South Africa's energy challenges.

10. The Committee noted the ongoing challenges with the Tirisano Construction Fund resulting in underspending. It encouraged the DTIC to engage the relevant construction companies to find a solution to this matter.

11. The Committee encouraged the Minister to expedite the finalisation of the appointment process for the Director-General position, which has been vacant for over a year, as well as other senior management positions. It also emphasised that the DTIC's organisational structure design process should be completed to ensure that the structure is fit for purpose and that the necessary posts can be filled. It was of the view that this was critical to ensure the stability and strategic direction of the DTIC.

12. Given challenges faced by some of the DTIC's entities, the Committee was concerned by the slow progress on the review of the entities' governance framework. It encouraged the DTIC to allocate the necessary resources to ensure that this review could be concluded and the necessary changes to the governance framework are implemented.

The Chairperson thanked the Committee Secretary. As this is the ANC’s concluding remarks, is the ANC satisfied with the amendments made to points 4 and 6?

Mr M Malematja (ANC) said, on the issue of point 4, the comment regarding the publishing of the draft policy was included in the proposed conclusions as the Committee did not approve the report in the second quarter and it was therefore assumed that it would be appropriate to include it in the report even though it occurred after 31 March 2022. The comments by the Committee Secretary are, however, noted and it can be moved to the BRR Report.

Mr S Mbuyane (ANC) said that point 6 is fine and can remain as is. Clear targets need to be set regarding Black Industrialist Programme.

The Chairperson asked if any other political parties would like to submit additional input.

Mr W Thring (ACDP) said that ACDP is glad that the aspect of beneficiation is being included and that the ACDP looks forward to the policy of beneficiation being fast-tracked.

The Chairperson noted that there were no further additions and moved to the adoption of the report.

Mr Mbuyane moved to adopt the report.

Ms N Motaung (ANC) seconded the adoption of the report.

No objections or abstentions were noted.

The report was adopted with the amendments.

Committee Minutes

The Committee Secretary took the Committee through the Minutes of Proceedings of the Portfolio Committee on Trade and Industry on 25 May 2022.

The minutes were adopted without amendments or objections.

The Committee Secretary took the Committee through the Minutes of Proceedings of the Portfolio Committee on Trade and Industry on 31 May 2022.

The minutes were adopted without amendments or objections.

The Committee Secretary took the Committee through the Minutes of Proceedings of the Portfolio Committee on Trade and Industry on 7 June 2022.

The minutes were adopted without amendments or objections.

The Committee Secretary took the Committee through the Minutes of Proceedings of the Portfolio Committee on Trade and Industry on 8 June 2022.

The minutes were adopted without amendments or objections.

The Committee Secretary took the Committee through the Minutes of Proceedings of the Portfolio Committee on Trade and Industry on 10 June 2022.

Mr Z Burns-Ncamashe requested that Mr M Tshwaku‘s (EFF) title be changed to Dr in the minutes.

The minutes were adopted.

The Committee Secretary noted that the next Committee meeting would be on 30 August 2022.

The Chairperson thanked the Committee and adjourned the meeting.