National Small Enterprise Amendment Bill: adoption

Small Business Development

05 December 2023
Chairperson: Ms V Siwela (ANC)
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Meeting Summary

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The Portfolio Committee on Small Business Development convened to finalise the National Small Enterprise Amendment Bill. The Bill provides for the establishment of the Small Enterprise Development Finance Agency; to ensure the provision of financial and non-financial support services to small enterprises; to promote the development of sustainable and responsible co-operative banking; to provide for the establishment of the Office of the Small Enterprise Ombud Service; to enable an equitable trading environment for small enterprises through the provision of affordable and effective access to justice; and to empower the Minister to declare certain practices in relation to small enterprises to be prohibited as unfair trading practices and make regulations relating to unfair trading practices.

The Committee deemed the Bill desirable, considered and voted on the B-List of amendments and voted in favour of the Bill as a whole. The EFF raised objections to particular clauses.

Meeting report

Opening remarks

The Chairperson, Ms V Siwela (ANC), welcomed attendees and outlined the agenda focusing on considering and adopting the National Small Enterprise Amendment Bill. Without delay, she handed over to the Committee Secretariat to address roll call and apologies, asking if there were any.

The Committee Secretariat noted an apology from Mr H Kruger (DA), explaining that he supports his wife, who is currently hospitalised in the ICU. The Secretary then proceeded to confirm the attendance of Members, department officials, and parliamentary colleagues.

The Chairperson extended well wishes to Mr Kruger's wife by wishing her a speedy recovery.

The agenda received approval, and the meeting moved forward.

Report of the Portfolio Committee on Small Business Development on the Motion of Desirability of the National Small Enterprises Amendment Bill [B16 - 2023]

 Mr Sibusiso Gumede, Committee Content Advisor, acknowledged that most of the issues in the motion of desirability had already been addressed, covering aspects such as the Bill's introduction, referral, objectives, and Committee considerations. He outlined the procedural steps followed since the Bill's referral to Parliament in June 2023.

He emphasised that, according to National Assembly (NA) Rule 286, subsections 4(i) and (j), the Committee had to vote on the motion of desirability. If rejected, the Bill would be immediately tabled with its report, or if adopted, the Committee could proceed to deliberate on the legislation details based on received inputs and engagements.

Mr Gumede shared uncertainty about the Committee's handling of the voting process, suggesting that the Committee Secretariat might be aware of who is present and voting on the platform. He noted the two alternate Members from the DA and UDM, stating they were not eligible to vote. He then deferred to the Committee Secretariat to manage this aspect of the voting process.

The Chairperson urged the Committee Secretary to swiftly initiate the voting process, following the outlined procedure in NA Rule 286, subsection 4(i) and (j), as indicated by the Content Advisor.

The Chairperson instructed the Secretary to inquire about the voting preferences of each eligible member on the platform, prompting a closure of the voting chapter.

Mr F Jacobs (ANC) suggested voting along party lines and, in his capacity as the whip, said all Members of the African National Congress voted in favour of the Bill.

The Chairperson emphasised the continuation of the procedure, instructing that the next party be called upon to indicate whether their Members on the platform were voting in favour or against the Bill. The Chairperson highlighted the importance of following the established process, akin to how it is done in the House.

Mr J De Villiers (DA) said his party supported the Bill.

Inkosi B Luthuli (IFP) voted in favour as well.

https://pmg.org.za/tabled-committee-report/5611/

Consideration of and Voting on the B-List

The Chairperson introduced Ms Telana Halley-Starkey, Parliamentary Legal Advisor, who would lead the Committee in considering and adopting the B List of amendments from the Portfolio of Small Business Development. B16A-2023 indicates the List of amendments made clause by clause before the Bill changes to B16B-2023 after the amendments are processed.

Ms Halley-Starkey explained that, typically, this task is assigned to the Committee Secretary. However, she proceeded to take the Committee through the B List. She confirmed that the amendments adopted by the Committee had been incorporated into the List. She suggested reading through each clause and pausing for the adoption of each.

Ms Halley-Starkey said no amendments were made to the long title of the Bill or the various definitions contained in it. She then asked for the Committee Members' votes or resolutions on the adoption of clause one.

Clauses 1, 2, 3

The Members adopted the clauses with no objections or amendments.

Clauses 4, 5, 6

The Members adopted clauses with no amendments or objections.

Clause 7

The clause was adopted.

Ms B Mathulelwa (EFF) stated that, as the EFF, they do not adopt the clause.

The Chairperson acknowledged Ms Mathulelwa's objection, stating that it was noted.

The Chairperson explained that the clause was adopted in the first session, and now they are verifying what transpired. The Chairperson emphasised the need for clarity on how the law will be regulated, referring to the Bill.

Clauses 8, 9,10,11, 12

The Members adopted the clauses with no amendments or objections.

Ms Halley-Starkey informed the Chairperson that the consideration of the A-Bill had concluded, and the last remaining item was the schedule, which was adopted in Clause 9 of the Bill. She mentioned that the rest of the Bill includes the memorandum of objects, which forms part of the Bill.

Adoption of the whole Bill

The Chairperson requested a mover to adopt the entire Bill, encompassing clauses one to 12.

Ms M Lubengo (ANC) moved for the adoption, and Mr Jacobs seconded the motion.

The entire Bill, comprising clauses one to twelve, was subsequently adopted by the Committee.

There were queries regarding whether the EFF intended to withhold support for the entire Bill or specific clauses.

Ms Mathulelwa clarified that her objection pertained specifically to the amendment of section 20 and Section 3, along with the proposed Section 3A subsection one. She emphasised that her opposition was targeted at these specific provisions, not the entire Bill.

Report of the Portfolio Committee on Small Business Development on the Adoption of the B-Bill of the National Small Enterprise Amendment Bill [B16 – 2023]

 The Committee Content Advisor presented the report on the adoption of the National Small Enterprise Amendment Bill. The Bill, labelled [B16-2023], was referred to the Committee on Small Business Development on 29 June 2023. The Department briefed the Committee on proposed amendments on 30 August 2023. Public comments were invited and published through various channels from 10 October 2023 to November 2023.

Public hearings were initially set from 26 October 2023 to 23 November 2023, but were extended due to the voter registration weekend. Provincial hearings took place during this period, with a total of 4 933 participants attending from all nine regions of South Africa. Of the participants, 508 submitted oral submissions, with 79% supporting the Bill, 6% rejecting it, and 15% partially supporting it.

Written submissions included 310 forms, where 80% agreed with the Bill, 15% opposed it, and 5% were unsure or neutral. There were 19 significant written submissions, with 10 requesting oral presentations scheduled for 28 November 2023, via a virtual platform.

As of 10 November 2023, the Committee received 322 electronic emails related to the Bill. The report indicates a thorough public participation process, with a majority of stakeholders expressing support for the National Small Enterprise Amendment Bill.

The Chairperson interjected and asked why this was being repeated again. Stating that the Committee had gone through this in the previous meeting(s).

Mr Jacobs urged the Committee to expedite the proceedings, emphasisng the time pressure due to the Chairperson’s need to return to the House. He appealed for a swift conclusion of the section.

Mr Gumede sought guidance from Ms Halley-Starkey to ensure the correct procedural steps. He proceeded to provide an overview of the Committee's activities, where they deliberated on the A list and the B list of the Bill. The Committee, with Members from ANC, DA, and IFP, approved both documents. Section 4 highlighted the clauses discussed by Ms Halley-Starkey, and Section 5 acknowledged the parliamentary staff for their role in the public participation process and documentation development. Section 6 presented a recommendation for the National Assembly to adopt the B bill, with plans for referral to the National Council of Provinces after National Assembly approval.

Ms Lubengo moved for the adoption of the report, and Mr Jacobs seconded the motion.

The report was adopted by the Committee.

Mr Gumede requested to clarify the objection from the EFF under Section 3 of the report.

The Chairperson emphasised the need for the National Assembly to adopt the report for referral to the National Council of Provinces.

The Chairperson then sought any Members willing to move for the adoption.

Ms K Tlhomelang (ANC) moved for the adoption of the report, affirming it as a true reflection of the proceedings. Ms Lubengo seconded the motion.

Read full report here https://pmg.org.za/tabled-committee-report/5612/

The Chairperson thanked the Members for the adoption of the report, extending thanks to the legal advisors, state law advisers, officials, and all participants, including the public. She conveyed appreciation to the Members for their cooperation and leadership throughout the process.

The meeting was adjourned.

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