Petroleum Products Amendment Bill: briefing and voting

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Meeting report

 

ECONOMIC AND FOREIGN AFFAIRS SELECT COMMITTEE
27 October 2004
PETROLEUM PRODUCTS AMENDMENT BILL: BRIEFING AND VOTING

Chairperson:
Ms N Ndalane (ANC)

Documents handed out:
Petroleum Products Amendment Bill [B16-04]
Department proposed amendments to the Petroleum Products Amendment Bill
Department PowerPoint presentation on the Petroleum Products Amendment Bill
Department proposed new clauses to the Petroleum Products Amendment Bill

SUMMARY
The Committee met for the presentation and finalisation of the amendments to the Petroleum Products Amendment Bill [B16-2004]. The Department of Minerals and Energy explained the proposed amendments. The Committee adopted the proposed changes in Sections 1, 2 and 3.

MINUTES

Department briefing
Mr Nhlanhla Gumede, Department Chief Director of Hydrocarbons, presented the proposed new clauses and amendments to the Bill. The first ‘objective of the Bill’ was to substitute or delete certain conditions regarding the purchase and sale of petroleum products manufactured from coal, natural gas or vegetable matter; and to authorise the Minister of Minerals and Energy to make regulations and to make amendments to the envisaged licensing system.

Mr Gumede added that, under the objectives of Bill, the Department proposed that they change "must" to "may". Mr Gumede explained that their second objective was to correct technical errors that had crept in, as well as to correct definitions in the Principle Act and Amendment Bill.

Mr Gumede added that the Department had proposed the amendment of section 1 of Act 120 of 1977, as amended by section 1 of Act 61 of 1985, section 1 of Act 68 of 1991 and section 1 of Act 58 of 2003. He explained that the word "’wholesale’ meant the "purchase and sale in bulk of petroleum products by a licensed wholesaler to or from another licensed wholesaler, or to or from a licensed manufacturer, or sale to a licensed retailer or to an end-consumer for own consumption and ‘wholesaler’ shall be interpreted accordingly".

With regards to the Correct Ownership clause, he explained that the Amendment of Section 2A of Act 120 of 1977, as inserted by section 3 of Act 58 of 2003, "(c) in the case of retail and wholesale licences be the owner of the business [entity] concerned". The Department had also requested the deletion of "entity" here. With regards to the "Correcting System Regulation," Mr Gumede further requested the deletion of "and the supply of prescribed petroleum products to such licensees," from 2E (1).

Mr Gumede requested the insertion of "to effect certain technical adjustments" in the Long Title. He also suggested the deletion of "Petroleum Products Act 1977, (hereinafter referred to as the principal Act)" to be replaced with "Principal Act."

Discussion
The State Law Adviser, Mr Herman Smuts, said he did not have anything to add since the amendments were very technical.

The Chairperson asked Mr Gumede of the relevance of "vegetable matter" had to the Bill. Mr Gumede replied that the government was currently trying to promote the use of ‘bio-diesel‘ from vegetable matter. He then explained the vegetable oil production process, in which seeds were processed into plant oil and then went through further refinery. The government intended to test this product as a possible alternative to crude oil.

The Chair read the Motion of Desirability for consideration of the Bill, to which Members agreed. She read the Amendment Bill from Section 1, through to Section 3 on the Bill, to which Members also agreed. The Chair put the entire Amendment Bill to the Committee, and noted that Members had agreed to adopt it.

The Chairperson informed Members that she would not be chairing the following meeting as she would be on a trip to Tanzania and then Namibia to observe elections. Mr D Mkono (ANC) nominated Ms M Themba (Mpumulanga) (ANC) to chair the following meeting, and the Committee agreed.

The meeting was adjourned.

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