Progress Report on Past Decade: Department briefing

Meeting report

COMMUNICATIONS PORTFOLIO COMMITTEE
5 October 2004
PROGRESS REPORT ON PAST DECADE: DEPARTMENT BRIEFING

Chairperson:

Department PowerPoint presentation

SUMMARY
The Committee discussed its forthcoming visits to the Eastern Cape, KwaZulu-Natal and the Free State, to evaluate the work of the Department on the ground. In the Eastern Cape, Members would visit Lusikisiki to assess the activities of the Post Office, radio stations, and telecentres. Some Members raised their concerns about alerting Department officials and instead suggested surprise visits. The Committee then agreed to alert officials in order to question them, and to combine urban and rural visits.

The Department then briefed the Committee on the policy, legislative and regulatory framework of the information and communication technology (ICT) sector. They reported that the Postal Business Unit priority projects included 'corporitising' the Postbank, and transforming the South African Post Office.

Director-General's presentation
The Director-General, Mr John Jware, reported that the Department had achieved much over the past decade. It had enacted laws that regulated broadcasting, and facilitated the establishment of quasi-governmental bodies like the Independent Communications Authority of South Africa (ICASA). The establishment of the third cellular operator had heralded the widespread use of telecommunications for ordinary South Africans. The privatisation of Telkom had been hailed as a major achievement. Airwaves had been made accessible to various groups such as women, youth and religious group through the establishment of community radio stations. The amount of local content on radio and television had increased to 20%. The establishment the National Film and Video Foundation was expected to facilitate broadening of the South African Film Industry.

The establishment of the second fixed telephone line was expected to stimulate competition within the telecommunications industry, attract direct foreign investment, and benefit consumers. The tendering process had been subjected to delays, but these were expected to be sorted out soon.

The State Information and Technology Agency Act No 88 of 1998 had been enacted to ensure that all government departments could access each other's information databases. Large sections of the population had no access to postal services, especially in rural and informal settlements. The Department's suggested solution was a 'Citizens Post Office (CPO)', along the lines of Postnet. Community members would be trained in management and the daily running of the CPO. Only 14 such offices were operational thus far. Another initiative by the Department was the installation of the Public Information Terminals (PIT), whereby computers and fax machines were installed in existing Post Offices for public use. Small, Medium- and Micro-Enterprises could use (PIT) for a business directory.

One of the challenges faced by the Department had been to transform the Postbank into a corporate entity. The South African Postal Services had to be turned into a service-orientated concern. That could be done by establishing a regulatory body along the lines of ICASA. Its task would be to monitor, evaluate, and regulate postal services. Funding black economic empowerment groupings and women, people with disabilities and youth, had posed tremendous challenge for the sector. Balancing universal service delivery with profit in quasi-governmental entities, had been bit difficult for the Department. Skills development in the communications sector needed urgent attention if the Department was to meet its mandate. The Ministry of Communications had forwarded certain proposed laws for debate, namely the Convergence Bill, National E-Strategy Policy, Digital Broadcasting Policy, and the Broadband Policy.

Discussion
Ms S Vos (IFP) enquired about the type of legislation needed in order for social grants to accessible at Post Offices. What criteria were used when appointing the South African Broadcasting Corporation?

Mr J Radebe, the Department Deputy Diretor-General (DD-G), replied that the Department of Social Services had been facilitating the payment of social grants through the Post Office. The provinces had the powers to initiate such ventures by approaching the Post Office for provision of social grants. Private companies had done a poor job in providing social grants. The Post Office had better infrastructure to undertake such challenges

Mr Jware added that the Committee had set up a framework to influence the process of appointing boardmembers. The Department had already forwarded a broad and transparent framework of how the board would be elected. The framework was subjected to stipulated regulations by ICASA. There had been much discussion among political parties on the issue of the board. The SABC had operational policy that was subject to public scrutiny and ICASA regulations. The South African public had a platform to which they could raise their complaints, the Broadcast Complaints Commission.

Mr R Pieterse asked why ICASA had not taken over the role of oversight and monitoring of the Post Office. He felt another regulatory body would be a waste of time and resources.

The Chairperson asked about the role of the Post Office in providing basic technological services such as the internet, fax, and telephones in the rural areas.

Ms S Vos asked about the role of the Domain Name Authority. What would be the uses of the satellites donated by the Indian Prime Minister? What were the advantages of launching satellites?

Mr Radebe answered that the satellites would very useful in relaying information to scattered areas, such as doctors needing to communicate with other medical personnel at rural hospitals. Most ideal satellite spaces suitable for South Africa, had been taken over by other countries like Malaysia. The role of the Domain Name Authority was to administer licences, and regulate the '.za'. The Authority had nine boardmembers.

Mr Jware added that the Post Office had been mandated with providing Citizens' Post Offices. Eskom and Telkom were expected to provide electricity, cabling and internet and telephone connectivity.

Mr M Maziya (ANC) commented that corporitasation of the Postbank has been on the cards for some time. Why did the Department not pull its weight on the issue? Where did the Department bank their funds and why? What had the Department done to in sorting out of high Telkom tariffs?

What was the role of the Department in providing addresses? The postboxes provided before, were far away from residential areas, and people had to travel far to them.

Mr Radebe replied that one option was to integrate the Postal Regulator with ICASA instead of setting up a new regulatory body. The South African Local Government Association (SALGA) and Statistics South Africa had teamed up to compile the National Database of Addresses. High tariffs could be addressed by policy changes from Parliament. Monitoring and evaluation of tariffs by the Regulator could be another option.

He added that the Department had been using Nedbank, as had other Departments. The Post Bank had had to tender, just like all the other banks that tendered for government business. The Post Bank had to position itself to offer all services offered by other banks. Policy decisions had to be made which would enable Post Bank to offer more services than they were currently providing. The Ministry of Finance was spearheading this process.

The meeting was adjourned.