Shortlisting of SATRA Councillor Nominations; Broadcasting Bill: discussion

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Communications and Digital Technologies

09 February 1999
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Meeting report

COMMUNICATIONS PORTFOLIO COMMITTEE
9 February 1999
SHORTLISTING OF SATRA COUNCILLOR NOMINATIONS; BROADCASTING BILL: DISCUSSION

Documents handed out:


ANC proposed amendments to Broadcasting Bill (Appendix 1)
Letter from SATRA chairperson outlining criteria for councillor appointments

(Appendix 2)

SUMMARY
A shortlist of eleven SATRA nominations was agreed upon.

The parliamentary law advisor explained the procedure for dealing with the Broadcasting Bill that had been referred back to the committee by the President. Political parties gave preliminary comments on the two clauses in the Broadcasting Bill that had been deemed unconstitutional but requested time to prepare position papers.

DETAILED MINUTES
Shortlisting of SATRA Councillor nominationsThree councillor positions needed to be filled from the 26 nominations received. The committee decided on a shortlist of eleven once each of the five political parties present had stated their preferences. (Both the Democratic Party and the Inkatha Freedom Party asserted their dismay at the paucity of expertise amongst the pool of nominations).

The following is the shortlist with the number of votes received from the political parties and they will each be asked to attend a thirty minute interview with this committee:
Ms X Kakana 5
Ms N Gosa 5
Ms K Baloyi 2
Ms V Simelane 2
Mr W Currie 5
Dr S Mudaly 2
Adv I Tiholwe 4
Mrs H Gouws 2
Ms F Mayimele-Hashatse 4
Ms M van der Walt 2
Mr T Makhakhe 2

Broadcasting Bill
The Parliamentary law advisor, Adv A Meyer, referred to Joint Rules 150, 152 and 153 in explaining the procedure the committee should follow in dealing with a bill referred back to Parliament by the President because of substantive defects. Rule 152 states that the Committee is confined to discussing only the clauses with which the President had reservations. Rule 153 allows for either amendment of these clauses or if the substance is so defective, it allows the bill to be rescinded.

Adv Meyer was asked by the committee to identify the problems and possible solutions with regard to the substantive defects but he declined to give an off-the-cuff opinion.

The political parties requested time to finalise their positions as only the ANC had a written position paper with regard to proposed amendments. In the meantime they each gave their preliminary reflections on Clause 40 (1) (a) and Item 6 in the Schedule which introduces a new clause, 13 (a), into the IBA Act.

ANC position: Clause 40 (1) (a)
They welcomed the referral of the bill back to Parliament which was in line with a constitutional democracy and were pleased that only two clauses had been deemed unconstitutional. They believe that the minister has a role to play with determining regulations on procedural and administrative matters but it needs to be put beyond reasonable doubt that this does not infringe on the independence of the IBA which is tasked to regulate broadcasting.

NNP position:Clause 40 (1) (a)
They expressed their disappointment that the parliamentary law advisors had not picked up the problems earlier. They stated that ministerial powers with regard to regulating IBA matters must be excluded.

IFP position:Clause 40 (1) (a)
Though they accept the committee is confined to only the two clauses identified by the President, they believe there are constitutional and substantive defects that go far beyond those two clauses. With regard to Clause 40 (1) (c), they wanted to know what is the meaning of "administrative and procedural matters".

DP position:Clause 40 (1) (a)
They believe the substance of the bill so defective that it should be rescinded.
In their proposed amendments, the ANC does not define what is intended by Clause 40 (1) (a) as "any matter" is enormously broad and likewise in Clause 40 (1) (c), "administrative and procedural matters" need to be defined. Examples of policy-making matters that the Minster is permitted to regulate according to this bill were cited: Clause 38 (4) (a), Clause 3 (2), Clause 30 (4) which allows the Minister to prescribe the level of local content, Clause 11 (a).
Pointing out that this sector needs to be immunised from government control,
Clause 13 (a) needs to be entirely deleted.

FF position:Clause 40 (1) (a)
They stated that the executive of a government always tends to take away power from Parliament via regulation. In analysing this bill one must look at the worst scenario. They agreed with the DP concerns.

PAC position:Clause 40 (1) (a)
They believed that the parties passed this bill in good faith and did not intend that there be an overlapping of powers. However the independence of the IBA needs to be clear.

Mr Kekana (ANC) listed examples of power being given to the Minister in this bill which need to be clarified: Clause 1 (ix) (c), Clause 1 (xxxiii), Clause 18 (2), Clause 3 (2), Clause 19 (2), Clause 20 (2), Clause 38 (4).

He continued by asking Adv Meyer to differentiate between regulate and regulation; plus the meaning of Clause 1 (xxxiii) where the Minister is charged with administration of this Act; and if there was a role for the Minster beyond merely channeling money to the IBA. He suggested looking at the experience and the problems of the IBA with the above in mind.

Adv Meyer responded that the IBA functions in the sphere of the executive since it is not part of the legislature or the judiciary. He could not give guidance at this stage on how far the powers of the Minister reach within the confines of the Constitution and where precisely the line should be drawn before the Ministerial powers become overbroad and overlap with those of the IBA. He added that making regulations is not the same as regulating.

Mr du Toit (ANC) defined ‘regulate’ as laying down abstract, general norms whereas ‘making regulations’ is imposing specific directives. Both he and Ms Smuts (DP) disagreed with Adv Meyer that the IBA belonged with the executive. These independent bodies are a type of fourth power subject only to the Constitution and law and not subordinate to the executive. (Section 85 of the Constitution gives authority not power to the executive).

Ms Smuts referred to the Gilbert Marcus opinion that states S192 of the Constitution, a clause unique to this country, ensures Parliament cannot transfer the power of regulation from an independent body to the Minister. This was to avoid executive control of broadcasting as in South Africa’s past.

Adv Meyer acknowledged that the IBA is not within the realm of the executive but believed that clarity was needed on how far this independence reached with regard to this specific bill.

An ANC member stated that the discussion was becoming academic and one needed to be more specific in addressing the president’s reservations. He suggested using the ANC proposed amendments as a basis for discussion.
Ms Vos (IFP) said that the IFP was not prepared to work from the ANC proposal but wanted to come with their own mandated position. The NNP felt that the committee was concerning itself too much with "semantics". This was rejected by Ms Smuts and Ms Verwoerd (ANC) who felt that this discussion involved deep legal questions and was not time-wasting.

The parties echoed similar views when reviewing the Clause 13A which is an amendment to the IBA Act and appears as Item 6 in the Schedule of the Broadcasting Bill. Both the DP and IFP wanted convincing reasons why this Ministerial power was needed. The only justifiable power was Clause 13A (b) where the Minister could direct the IBA to make special investigations, for example, into digitalisation. The FF asked how can one ‘direct’ someone who is independent. The ANC agreed that it was important to put it beyond doubt that any policy directive from the Minister does not interfere with the IBA.

 

Appendix 1: ANC proposed amendments to Broadcasting Bill

AMENDMENTS TO SECTION 40 AND SECTION 13A OF THE SCHEDULE

Regulations of this Act

40. (1) The Minister may by notice in the gazette, make regulations regarding -

(a) any matter which is required or permitted by this Act;

(b) any notice required by this Act to be prescribed

(c) any administrative or procedure matter to be necessary for the provisions of this Act.

(2) No regulations may be made in terms of subsection (1) on any matter falling within the functions of the Authority in terms of this Act or the Independent Broadcasting Act

(3) In the exercise of his or her powers in terms of subsection (1) the Minister is obliged to consider the recommendations of the Authority.

Schedule

General role and powers of the Minister

13A

(a) -------------

(b) -------------

(c) -------------

(d) The Minister may from time to time by notice in the Gazette issue to the Authority national policy directions consistent with the objects mentioned in section 2 of the Broadcasting Act 1998. Provided no direction may be issued in terms of (d) which interferes with the independence of the Authority or which affects the powers and functions contemplated in section 13.

(e) -------------

(f) ------------

(

g) The Authority shall perform its functions in terms of this Act in accordance with policy directions issued under this section. Provided no such directions may be issued regarding the granting of a licence to a particular person or regarding the amendment, suspension or revocation of a particular licence.

Appendix 2: SATRA: criteria for councillor appointments

9 February 1999

The Honourable Mr Sam Moeti, MP

Chairman

Parliamentary Portfolio Committee on Communications

 

I thank you for your letter of 8 February 1999 in which you seek my opinion of the requirements to be considered in appointing Councillors to SATRA. The opinions offered below represent my experience over the past two years as we have worked on implementing the objects of the Telecommunications Act ("the Act"). I will also share my opinions with respect to the upcoming merger with the IBA.

First I wish to preface my opinion with the statement that the qualifications (Section 7) and disqualifications (Section 8) are fair and clear. The devil for the Portfolio Committee is in the determining how well a SATRA Councillor will in practice stick to these requirements.

There are three areas of real need on the Council: regulated industry economic experience; telecommunications licensing experience; telecommunications law experience.

1. As we move into additional cellular licenses, and PSTN operators, both in fulfillment of Government's objectives, SATRA needs on its Council someone with a strong economic background to guide the rest of us in evaluating the various economic issues that are already before us. Experience with regulatory work in this area is of particular importance as tariffs that customers pay for telecommunications services are due to come more to the fore.

2. An equally strong basis in telecommunications licensing issues is important, particularly where experience in the South African environment is concerned. It is valuable to appreciate what is in incumbents' licenses in order to ensure they receive fair treatment as we license new entrants. This is particularly important given the loss we have suffered at SATRA when the top transferee from the Department of Communications, with a strong background in telecommunications licensing, left us.

3. As a regulator, our regulations have the force of "law", secondary laws I believe lawyers would call them. The Council needs someone who can help us appreciate the nuances of the law and, more importantly, the nuances of the regulations we make. Most of our work outside of the technical elements such as spectrum management deal with legal issues. Equipping the Council with a legal mind would be extremely valuable, particularly someone with a telecommunications law background. This would be particularly helpful if the individual could deal with the advice we often have to provide to those people specifically mentioned in Section 2 of the Act: the disadvantaged, women, and disabled. all of whom we wish to include into the mainstream economy of our country, as required by both our Constitution and the Act.

4. Convergence of telecommunications and the media is an area that will also become more critical and SATRA at this stage does not have this type of representation on the Council. Issues surrounding broadcasting over the internet are already a reality around the world with other regulators and such a person would add a perspective that would also transcend over into the role of the IBA, thereby bringing the two organisations that much closer. Such a person should also be familiar with broadcasting.

5. With respect to the IBA, the general comments in the first two paragraphs above apply.

6. At the beginning of SATRA there was concern, with respect to the frequency spectrum, on the part of the broadcasting industry that SATRA was more concerned about telecommunications. It is nevertheless true that most of the spectrum is used for serves falling under SATRA That concern has since been allayed by our actions. SATRA and the IBA have displayed an excellent working relationship in my view through the Joint Liaison Committee (Section 28(3)(a)), which action has been appreciated by both industries. Nevertheless, it would be very useful to have an IBA Councillor moving into the merger with an understanding of spectrum issues. Much of both telecommunications and broadcasting will in future be frequency-based. SATRA will contribute two Councillors, myself included, who appreciate spectrum issues. The IBA needs to contribute to the merged organisation at least one Councillor who appreciates these matters so that the concerns can forever disappear. It will be healthy for both industries as they converge.

7. Unlike in November 1996 when we were interviewed by Parliament, the salary package of the new Councillors should be stated to them up front. The issue here being that in a dynamic industry such as we regulate, the pressure to "raid" not only our staff but also our Council is considerable. This may have the tendency to eliminate members of our historically disadvantaged community from serving on the Council, but at least it will minimise hard feelings from those who did not know ahead of time what their remuneration would be. It will also minimise any tendencies towards neglecting the public interest.

8. Last but certainly not least, I wish to go back to the qualifications. While age is not stated, it should have some consideration given the huge responsibility placed upon us. The maturity to consider all angles of an issue without being impetuous would be an added advantage to a Councillor. That of course is what the public interest demands. The ability to work with others is a huge asset I have found, especially given the pressures under which we operate. The importance of maturity and level-headedness cannot really be over-emphasised.

I hope these opinions shed more light on what I consider critical considerations necessary to permit the next Council of SATRA to continue to meet the public interest

MR H L MAEPA PrEng. PE

CHAIRPERSON



BROADCASTING BILL 1998

 

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