A summary of this committee meeting is not yet available.
SPORT AND RECREATION, TRADE AND INDUSTRY AND TRANSPORT PORTFOLIO
COMMITTEES: JOINT MEETING
12 September 2006
2010 FIFA WORLD CUP PREPARATIONS: SHARING OF INFORMATION
Chairperson: Mr B Komphela (ANC)
Documents handed out:
Youth Entrepreneurship Campaign 2010
2010 FIFA World Cup: Transport Action Plan 2010
Presentation Before Portfolio Committee: Trade and Industry, Transport and Sports and Recreation
Representatives of the Youth Entrepreneurship Campaign 2010 addressed the joint meeting. Entrepreneurship activities were very low in the country, and young people needed support through education, provision of support services and finance, and by being given business opportunities. They were in the process of visiting all provinces, especially the rural areas, and were also seeking media partners to spread the message.
Members said that young entrepreneurs needed passion to be successful. Mentorship programs were available. Questions were asked regarding the control of the campaign both operationally and financially. They felt that the youth was fragmented and that processes were being unnecessarily duplicated. Questions were also asked regarding the relationship between the campaign and the Umsobomvu Youth Fund.
The Department of Transport then presented on their readiness plans. Consideration had to be given to the needs of the FIFA family as well as the general public. The Department had various guarantees regarding the efficiency and availability of transport. A legacy of improved systems was needed. Attention was being given to road, rail and air transport. Consideration must be given to making the dates of the tournament coincide with academic holidays, and match scheduling would also influence transport planning.
Members asked questions about the capacity of the Department and in the air travel sector. There was concern about the number of vehicles available, and a major concern about traffic congestion.
The final presentation was from the Department of Trade and Industry. The FIFA World Cup would be a protected event to protect the FIFA brand. It would be a catalyst for the generation of local business opportunities.
Members said that the Department must show that government is implementing its own policies. Arts and culture would also have to be promoted through the World Cup. The importance of follow-up meetings to gauge progress was emphasised.
The Chairperson said that members of the Portfolio Committee on Trade and Industry were returning from China that morning, while the Chairperson of the Portfolio Committee on Transport, Mr Jeremy Cronin, had also sent his apology. However, similar joint meetings would continue as the country prepared for the 2010 World Cup. Cost cutting issues would be addressed with other Committees. The inputs of the Committees would be the key in all areas. His Committee had met with the Portfolio Committee on Provincial and Local Government. The stadiums would be located in the host cities, and money would be channeled directly to the municipalities. The nine host cities had presented recently at this meeting.
He said that one of the key challenges would be the issue of transport. A study trip to Germany had been held with some members of the Department of Transport (DoT). During the course of events, there would be interaction with business and all other parties. Youth entrepreneurship was one of these parties, and was a very relevant concern. It was important that the youth should be represented. The Department of Trade and Industry (dti) had been very focused in the Special Measures Bill process. It was important not to tamper with government policies regarding procurement, and the preferential procurement policy would remain in force.
Youth Entrepreneurship Campaign 2010
Mr Joseph Mashita, Outreach Manager, Youth Entrepreneurship Campaign 2010 (YEC), told the meeting that the current situation saw various sources of funding for young entrepreneurs. However, the level of entrepreneurship activities in South Africa was very low compared to other developing countries. There were major obstacles which would be addressed by YEC. The youth had the capacity to start and maintain businesses, which would contribute towards economic growth. The mechanisms to achieve this were in place.
He said that a number of young entrepreneurs would be created by 2010. The slogan was to create and empower 100 thousand young people by the World Cup. However, there were various factors which would hamper the economic environment. President Mbeki had committed himself to halving the unemployment rate by 2014. The youth would have to contribute 50% towards the achievement of this goal.
Mr Mashita said that there were three pillars to the YEC. The first was the creation of awareness and skills training. The YEC wanted to meet government halfway. The goal was to make the youth job creators rather than job seekers.
The second pillar was access to funding and business support. There were not enough financial products and services. This did not allow the youth fair and easy entrance to the business world. There was a need to create more financial products to suit the interests of the youth and the environment in which they operated. The youth wanted to participate in the business world, but were expected to compete against big and established business interests. This was unfair. The government and private sector should create exclusive opportunities for the youth. Where big tenders were awarded, sub-contracts should go to youth-owned companies. Access was needed to business support. Mentorship programs and market linkages were needed.
Mr Mashita explained the third pillar, namely legislation, regulation and policy. An environment was needed which would be conducive to the youth starting and expanding their businesses. Existing policies such as Black Economic Empowerment (BEE) and Transformation Charters only mentioned youth issues in passing together with women and the disabled. Women were favoured while there was no clear definition of what constituted youth and disabled owned companies. A better definition was needed.
He said that YEC was prepared to propose a document, namely the Youth Economic Empowerment Charter. The assistance and support of government was needed for this. For the first time, a partnership had been established whereby an organisation of young people could speak with one voice. Previously organisations such as the National African Chamber of Commerce Youth Chamber would only pay attention to their own constituencies. These various organisations would now speak as one. The partnership would involve academics, the support of government, metros and parastatal companies. Media partners were also being sought to spread the message into deep rural areas. Community radio was a particularly useful channel as it was prepared to engage and debate youth issues and to disseminate information.
He asked who the youth were. The group included women and men with or without disabilities. Definitions were needed. The business target market was women and men between the ages of 18 and 35. There were many other definitions of youth.
Mr Mashita said that the activities of the campaign were linked to the Umsobomvu Youth Fund. The Fund would accommodate the campaign while it was starting. Umsobomvu would be part of the secretariat. However, with the target of empowering 100 000 young entrepreneurs, the campaign could not rely solely on the Fund. A partnership was needed with government. A key activity would be the mobilisation of resources. Both financial and non-financial support was needed.
Mr Mashita said that a provincial roadshow was being undertaken, so that the campaign would not be seen as Gauteng based only. All provinces would be visited in order to spread the message, and the dti would be given a platform. Youth would also have a platform to engage with the dti and raise concerns. The market had been tested by a visit to Limpopo between 16 and 18 March 2006, where several towns had been visited. There had been interaction with more than one thousand young people. YEC had visited the Western Cape, travelling to three districts where young people did not have information needed. He had been shocked to see the low level of economic participation by the youth in the Free State. It was obvious that the environment had to be changed. Visits would be paid to the remainder of the provinces, and the campaign would interact with members of the Committee representing those areas.
He said that he was speaking to the SA Broadcasting Corporation as a potential media partner. A print medium still had to be identified. The private sector needed to come on board with YEC. Research into existing young entrepreneurs showed that development did follow initiatives.
He asked if the policies did work, and then listed some of the expected outcomes of the campaign. The announcement of South Africa as the host of the 2010 World Cup had excited young people. It was seen as a good platform for them to enter into contracts. It was a huge tournament. The participation of the youth should not be confined to service as volunteers. There had to be some benefit to the youth, and the campaign would lobby government to achieve this. It was time to set aside opportunities especially for young entrepreneurs. He suggested that 10% of the budget and business opportunities should be set aside for such people. The youth could participate in projects such as roads, stadiums and bed and breakfast type accommodation. Winners of big tenders should sub-contract to young people.
The World Cup would be for the benefit of the whole country. The Local Organising Committee (LOC) had said that this would be a youthful event. Contributions by the youth as players and volunteers was not enough. The youth needed to play an increasing part in the economy, and should have 20% of the procurement opportunities. In the provinces, there should be clauses to promote opportunities for young people only, and tenders should be awarded on this specific basis. Of the overall World Cup business, some 30% should go the way of young people.
Mr Mashita said that a key product of the campaign would be formal agreements with stakeholders. Presentations were made but there was no action on these. Stakeholders should be proud of the country, and express this pride by supporting youth initiatives.
However, it was often a battle to find young people when they were needed. YEC would soon be launching a database of young entrepreneurs, classified both by province and by sector of industry.
A lot of young people were succeeding, and recognition should be given in the form of awards for young entrepreneurs which could see them being role models. Stakeholders and World Cup opportunities should be controlled by the campaign. He suggested a national young entrepreneurs competition which would be guided by the first pillar of the YEC, judged by established business. A cash award and training opportunities would be at stake. He proposed the establishment of a mentor network.
The Chairperson requested that copies of the presentation be made available to members as no hard copy had been provided.
Mr J Masango (DA) asked what area was being targeted by the campaign.
Mr Komphela said that the campaign was to raise awareness. The youth should be creating jobs for themselves rather than wait on government.
Ms N Khunou (ANC) said that the campaign should address specific issues. The description of previously disadvantaged individuals (PDI) included women, youth and the disabled in general. As much as young entrepreneurs could be built, they needed passion to succeed as businesspeople. Without this ingredient they could become destroyed. Learning had to be encouraged, as education was the key to success. The dti already offered a mentorship program though the Small Enterprise Development Agency. Their services were available in all provinces. She was glad that YEC was not concentrated on Gauteng only as there were keen youth in the other provinces. She hoped that part of the campaign would be everybody helping each other.
Mr S Farrow (DA) congratulated the campaign, but asked who the driving force would be. He also asked what financial controls were in place.
Mr M Swathe (DA) asked what the response had been to the provincial visits. He asked when YEC would visit KwaZulu-Natal as he was a member of the youth structure in his party.
Dr M Sefularo (ANC) sensed that there seemed to be a move to replace the Umsobomvu Fund with young entrepreneurs. There was fragmentation amongst the youth. There had been a string of public hearings on youth unemployment and a number of submissions had been received. It seemed that the YEC had the same areas of activity as Umsobomvu. He asked how people were identified to attend the campaign’s meetings. There was a mushrooming of youth structures, and this could become a problem. He mentioned examples of other organisations including the graduate youth organisation formed by the Freedom Front. He asked about the relationship between YEC, BUSA and Netleg youth bodies, and how this contributed to job creation. He asked where the membership of the campaign was. Umsobomvu Fund supported five thousand young people and there were seven thousand voter shares. It was not logical to listen to things which should go to Umsobomvu. However, this fund had never managed to do a number of things despite the government subsidy it received. He sensed a duplication, and asked what the motive was for Umsobomvu being involved with YEC.
Mr E Lucas (IFP) congratulated the young people, and said that more information was needed. It was a difficult task as PDI’s were still not empowered. Business people were not very friendly, and were unwilling to share opportunities. The youth should be inclusive when given opportunities. The creation of a database was important, but a shotgun approach should be avoided. When given the chance, young entrepreneurs should deliver on their allocated share or else they would let the country down. The challenges were not insurmountable, and co-operation was needed. YEC must realise that 2010 was just a few weeks away, and time pressure could be fatal.
Mr M Moss (ANC) said that a lot of visits had been made. He said that there was an office in the Presidency specifically tasked with youth and disabled issues, and there were corresponding offices with each provincial Premier and city Mayor. He asked if YEC had had any contact with these offices.
Mr Mashita replied that there was some duplication of programs. It would be wrong to reduce the campaign to a level where there was only one partner. There was national representation at various Chambers of Commerce. There was a difference regarding the perceived duplication with the Umsobomvu Fund, which was not providing finance for young people nor was it issuing vouchers. YEC’s purpose was to create awareness and, in partnership, to render services and provide intervention. The dti had been approached regarding mentorship programs, and a meeting would be held. A meeting had already been held with the Women Empowerment Unit.
Mr Thapelo Maleke (Project Manager, YEC) said that what happened after the age of 35 was not the core business of the campaign. A person would graduate from one campaign to another. A person of age 36 was regarded as an adult and should already be empowered. Various institutes provided programs programs to assist such people. As regards the second pillar of the campaign, funds and support were available through the IDC which were a continuous benefit. SEDA could also assist. YEC saw itself as providing a preparation phase, as the history of the country showed that equal preparation opportunities had not been given. If this had been the case there would have been no need for the campaign, but there thus had to be something in place.
He said that the driver for the campaign was not the Umsobomvu Fund. The youth Chamber movement had been identified from different government entities such as the National Youth Commission. Young people had made it their duty to call for involvement with Umsobomvu, and there was a need to partner with the fund. However, Umsobomvu could not be everywhere like a member-based youth chamber. This would bring the Umsobomvu Fund closer to young people.
Mr Maleke said that the roadshows had worked with youth structures, the media and entrepreneurial development organisations. It had depended heavily on the offices for youth, disabled persons and women to meet existing structures. The mushrooming youth structures were healthy for democracy. He would be worried if nothing was being done, and encouraged initiatives as long as broader groups were being benefited rather than individuals. A meeting would be held with BUSA in Johannesburg later in the month. There would also be interaction with government and the private sector which would bring various structures to the youth.
Mr Thobile Yanta (Senior Research Manager, Umsobomvu Youth Fund) said that the question of UIF had been covered by the campaign. The target of creating and empowering 100 000 youth was beyond the scope of a single organisation. Multiple organisations were needed. The Fund would be a guide in the acceleration and massification processes. Urgent action was needed. Beyond the age of 35, education was important and in fact could not be overemphasised. Young entrepreneurs should be owners, and the campaign should be facilitated.
The Chairperson thanked the delegates for the information regarding the campaign. He was fascinated by youth with vision. There were existing structures, and the youth were being made aware of these. Various Departments, such as Labour, the dti, Sport and Recreation (SRSA) and other related Departments must link up with the campaign. Care had to be taken to raise the awareness of the YEC to monitor those reaching the age of 35. Young people should start their involvement sooner, so that they would have longer interaction with the campaign. The private sector also had responsibilities. Young graduates had to be located and advised of their prospects. The campaign should interact directly with the youth.
Mr Farrow asked how the fund would be generated in terms of money. There were six stakeholders, and he asked to whom YEC would report.
Mr Maleke replied that the Secretariat would represent all six stakeholders. A project management team would guide its activities. He was the Project Manager and Mr Mashita the Outreach Manager. This did not create another expensive structure. They were using offices at Umsobomvu House, where there was an existing infrastructure, but the management of YEC was independent. It was accountable to the Secretariat, which was the highest decision-making body, and the Secretariat in its turn reported to the constituent bodies. Stakeholders would meet with all involved, and would place people on the Board from time to time.
The Chairperson said that at the next meeting YEC would have to account for its projects and the impact of the campaign. This was in line with the Committee’s oversight role.
Mr Yanta replied that there was an impact assessment measure and a knowledge assessment measure. YEC operated on a minimal budget, and more support was needed. An accounting structure was in place.
Mr Komphela said that figures should not be a thumb-suck. There was no data system in place for the preferential procurement system.
Department of Transport preparations for 2010 World Cup
Mr Mathabatha Mokonyama (Acting Deputy Director-General, Integrated Planning and Intersphere Co-Ordination, DoT) said that DoT had signed guarantees for efficient and safe transport during the 2010 World Cup. Some vision was needed to meet these guarantees. Sufficient infrastructure and operations had to be in place while air and land operators had to be in place. A travel demand management plan was being drawn up based on estimated demand. Quality of vehicles and accreditation of operators needed attention. The transport chapter in the 2010 Bid Book had contained various promises.
The FIFA Family had to be assured of high quality transport. In Germany, the Family had been some 25 thousand strong. Sufficient transport had to be provided and the travel demands of the visitors had to be met. A 0% probability of failure was needed. Transport had to be seamless and invisible. At the end of the tournament, people should only be talking about the football rather than transport problems.
He said that the waiting time for officials and players at their hotels could be no more than five minutes, and for the media a maximum of ten minutes. Travel time would largely depend on the location of accommodation, which should be chosen so that it would be a maximum of 30 minutes from the venue.
Mr Mokonyama listed two major objectives. The first was to support the success of the 2010 World Cup. Transport systems would play an important role in meeting this objective. The second was to extract the maximum legacy value for the public transport system, and projects had to be sustainable.
A transport action plan had been drawn up. A booklet had being drawn up but was still being finalised. This would be useful to organisations involved in transport. Actual projects would be the responsibilities of the host cities. It would also be helpful to the YEC. It contained a vision, objectives and principles. He hoped that the draft action plan would be launched during October 2006.
He revealed that financial support would come from the national Treasury. Some R3.74 billion would be invested in the public transport system, with funding starting from the 2008/09 financial year. This could be reviewed.
The World Cup was coming at a time when the challenges were known but there was a lack of resources. Programs would have to be accelerated. The two passenger rail entities were being merged. The first phase was complete while the second phase would occur in 2007. The bus system would be expanded and the number of metred taxis increased. Newer minibus taxis were being introduced. Portions of the Gautrain project impacting on World Cup structures would be completed by 2010. The taxi recapitalisation program would continue until 2012, but he hoped that 80% of the project would be completed by 2010. Increased participation would be improved. A draft public transport strategy had been approved by the Minister, and would be on the agenda for the 2007 Cabinet Lekotla.
Mr Mokonyama said that the Airports Company of SA (ACSA) had an airport development master plan, a key program of which was the new King Shaka Airport to be built in Durban. The existing Durban International Airport would be decommissioned. A massive expansion was in progress at Johannesburg International Airport (soon to be renamed) and sustainable projects were planned for Cape Town and Port Elizabeth.
The 2005 budget made provision for improved transport networks. Money would come from the public transport fund rather than the World Cup budget, but the tournament was a major motivating factor. There would be World Cup related funding, with budgetary provisions continuing into 2011. DoT would play a co-ordinating role and would set targets, but the work would be done in the host cities. More than 250 proposals had been made regarding various transport projects.
Call centres had been established and work was being done to improve the public address systems at railway stations.
He said that a key requirement of the public transport infrastructure fund was to prioritise public transport rather than private transport. Long term mobility had to be achieved, and projects had to be sustainable beyond 2010. Government programs such as the PPPF and broad-based BEE had to be considered. Projects had to be practical, and implementable by 2010. The overall program should be completed before 2015.
Mr Mokonyama then listed some projects. Some were already underway, such as the Johannesburg/Soweto corridor and the Khulane corridor in the Nelson Mandela Bay Metro was another example.
He said that the national Department had provided the guarantees. DoT would therefore manage the fund and evaluate projects. The host cities were to develop local plans linked to the Integrated Transport Plan (ITP). They would require funding to implement their projects. The projects would be integrated with other sectors, and he admitted to having sleepless nights thinking about possible problems. However, he quoted the example of Mbombela where a good, integrated plan had been drawn up.
The work done at national level would be a framework for local authorities. The system should be tested during 2009. In terms of the MME program, host cities were to report according to the terms of the Public and Municipal Financial Management Acts and other related legislation.
Mr Mokonyama said that environmental co-ordination would be done by the Director General (DG) of SRSA’s 2010 Unit. The operational plan would have to be delivered before infrastructure could be developed. It would have to be determined if it would fit well with developmental guidelines and standards needed to be set. This would be jointly with Treasury, which determined the development fund protocol.
He said that DoT had the money, while the host cities would have to deliver projects according to the agreed plan. Funds could be withdrawn if projects were failing, but he wondered if that would save the situation. The guarantees had to be upheld. He wondered if the cities were ready to face the challenges. There should be regular engagement with the LOC, which would convey FIFA’s requests and expectations.
He said that unless the tournament format changed, 64 games would be played involving 32 teams. The average crowd was expected to be 50 thousand, which would equate to approximately 3.2 million tickets being sold. It was expected that approximately 70% of these would go to international spectators and the balance to South Africans. This would mean over 300 thousand international visitors over and above the number of tourists. Exact figures would become clearer when tickets went on sale in 2008. A large number of people, which he estimated as being more than 200 thousand, would be crossing the borders of South Africa without tickets.
Mr Mokonyama said that the fan fests, previously known as public viewing sites, should be located on transport routes such as rail corridors. The tournament would take place during the South African winter, and he expected that fans would not be inclined to linger at the match and fan fest venues after the end of the match. It would therefore be necessary to plan on mass evacuation of spectators soon after the final whistle. The availability of sufficient transport would influence this planning.
He reminded the meeting that the dates for the World Cup would probably be from the second week of June until the second week of July. This would be 31 or 32 days in duration. If these dates were to coincide with academic holidays the would be less traffic on the roads and university and school residences could be made available for accommodating visitors. It would not be possible to stage simultaneous matches in Johannesburg as the transport system would not be able to cope with the demand in such an event.
He said that FIFA’s policy in determining venues was that each team would only play one match in each venue during the group stage. Teams and following fans would there be roving throughout the country. The most critical time would be between days 12 and 15. The final group games would be played at this time and would determine the teams to qualify for the knock-out stage. These were the most watched games, both live and on television. He estimated that one hundred thousand individual passenger journeys would be recorded in this period. It would help if venue clustering was possible, but at present matches would be shared between the ten venues accepted by FIFA.
The dates of the tournament would still be determined, but it was likely that each team would have at least two days free between games. Their movement around the country would take place during these off days. For the tournament dates to coincide with academic holidays, either FIFA would have to set the dates to match the holiday or educational institutes would be asked to match the holiday dates to the World Cup schedule. He pointed out that this had been done when the World Summit for Sustainable Development had been held in Johannesburg.
Mr Mokonyama said there would be enormous pressure on the local transport systems in Gauteng. Most visitors would land at Johannesburg. There would be heavy traffic between Gauteng, Polokwane and Bloemfontein. There would be pressure on intercity systems, whether bus or train. Most movement between there and the coastal venues would be rely on the domestic airlines. Transport between Durban and Nelspruit would be a particular problem. It would help if FIFA changed its policy to allow teams to remain within smaller regions. The capacity of the transport system would influence match scheduling. No more than one match per day should be held at any one venue. On the busiest days, such as day 15, there might be as many as 15 thousand passenger movements between Cape Town and Johannesburg.
Mr Mokonyama said that the number of people flowing through the airports would put pressure on domestic airlines. Extra capacity would be needed. On day 15 26 train sets, each carrying 800 passengers, would be needed. This would require 456 coaches. Generally 60 trains were needed, 2400 buses and six thousand minibuses. He anticipated that all hire car stocks would be used, and so too the various tourism and shuttle fleets.
Alignment of the plan had to be done, and integration local plans would have to be integrated into broader plans. DoT had started to draw up a framework for an operational plan. Host cities now had to draw up their own detailed plans. Systems had to be ready by the Confederations Cup in June 2009, which would serve as a test of the systems. A period of eight to ten months would then be available to fix any defects before final testing in January and February of 2010.
He said that stakeholder management would focus on aviation, handling of cross-border visitors, road safety management and road infrastructure management. Host cities would have to deliver on their operational plans. The greatest challenge lay in the host cities’ ability to deliver. Other sectors involved would be security, SRSA, tourism and communications. FIFA was already identifying accommodation in the host cities, and these decisions would help in the planning of transport systems.
Mr Farrow said that the co-ordination of transport had to be in good hands. Staffing and capacity was a key challenge, as the capacity did not exist within DoT. It seemed that a one man band situation existed at present, and a recruitment process was needed urgently. The infrastructure for air transport could be achieved, but there were serious problems with logistic and operational management. ACSA should explain these problems within their systems. To move 300 thousand visitors between their hotels and match venues would require 450 coaches. One match in Cape Town would attract between sixty and seventy thousand spectators. He noted that 1 500 coaches were needed, but at present there were only approximately 400 registered and accredited luxury coaches in the country. Normal daily life would continue during the tournament, and the usual rush hours would still apply. Air transport of visitors would require big aeroplanes to be used, and there would be heavy loads on airports. He asked if this had been considered.
Mr R Reed (ANC) spoke about the problem of moving people between airports and match venues. Parliamentarians were already battling to travel between their homes and work. He asked if the transport plan would allow for a free flow of traffic. Other carriers should be brought in to fill the gaps in internal flights. Tourists would also want to travel by bus to when not watching games, and he asked if the roads were in an acceptable condition.
Mr E Saloojee (ANC) pointed out that the Gautrain had not been planned within the context of the World Cup. This had perhaps been a mistake. He lived near to the airport in Johannesburg, but it often took him four hours to get home. Traffic was gridlocked. There was inner city congestion, and congestion between Soweto and the city. The venues for the games were in this area. A massive plan was needed, and this would involve fundamental changes. It seemed that these problems had not been considered. Very serious problems lay ahead.
Mr Masango said that at the end of the day, the problems would affect DoT. Matches would be played at the end of the working day, and normal traffic would be experienced. He asked if there were any considerations to choose hotels near to the stadiums. Cape Town’s situation could not be compared to Mbombela or Polokwane. Most projects would be run by local authority with DoT providing the funding. A monitoring system was needed to ensure timeous completion of projects.
Mr Mokonyama replied that there had been a challenge to display particular scenarios based on the experience of previous World Cup tournaments. All figures depended on the availability of accommodation. The 30 minute rule only applied for FIFA members, and spectators might well be accommodated at more distant venues. Integrated efforts and plans were needed. It would be better if FIFA was flexible regarding dates.
He said that there was a measure included in the plan for road congestion. There would be upgrades to the road system while public transport would be encouraged while private transport would be discouraged. The project was addressing this problem.
Mr Mokonyama said that he could not speak for the overall capacity of DoT, but only for the World Cup program. DoT realised that a dedicated unit was needed, and recruitment was being done. Its main role would be in co-ordinating activities. Regarding logistics, the challenge would be in the implementing agencies. Bottlenecks should not happen at airports. The sector had done a lot of work based on the projected figures for 2010. Operational issues such as check-in facilities and immigration control were all part of the value chain.
The Chairperson said there would be a day when all the key Departments would meet. Security on trains was another issue, as it would not help if one was able to talk on a cellphone or work on a laptop computer if these were likely to be stolen. The DoT presentation had sketched a scenario without details. He would be nervous if this was the detailed plan. At DoT’s next visit to the Committee, progress must be visible. At present he needed to take a leap of faith to accept the likely success of the plan. Provision had to be made to demonstrate milestones.
Mr Komphela agreed that a meeting should be held with ACSA. The scenario was not restful at present. He appreciated the good work which had been done. He had seen much in other countries such as dedicated traffic lanes. The DoT had learned much during the visit to Germany. He asked what bylaws or amended laws would be needed to implement the plan. He was concerned about the human capacity required. The systems test envisaged for 2008 was only eighteen months before the World Cup, and this was problematic. The Committee should meet constantly with DoT, which was playing a co-ordinating role.
Mr Mokonyama undertook to send a document to the Committee containing full details of the plan, activities and deadlines. It might not have details on particular projects.
The Chairperson said he would get the details later, but repeated that he had to take a leap of faith at this stage.
Department of Trade and Industry preparations for 2010 World Cup
Mr MacDonald Netshitenzhe (Director: Commercial Law and Policy, the dti) said that the dti committee dealing with FIFA involved various units. His concern was intellectual property, which encompassed copyright, trademark, trade knowledge and branding issues. The dti had agreed to declare the World Cup a protected event in order to protect FIFA’s brand.
It was necessary to determine where the business and economic opportunities lay. The dti had been mandated to do this by an inter-ministerial committee and would also involve itself with FIFA issues. The tournament would provide opportunities for South African business. The dti required that the LOC allocate 30% of its budget, which would be a figure of approximately R5 billion, to South African businessmen. A value chain would be created. However, there were questions of capacity and if the project would require some quality control. He could not answer questions relating to time. He also wondered if the dti should engage the LOC with evidence it had gathered.
He felt that the best approach should be followed as time was of the essence. The dti procurement policy applied equally to itself. There was a unit within the dti to deal with BEE application. This unit would ensure compliance with criteria of BEE. The unit would liase with various other Departments which had provided World Cup guarantees. BEE compliance was needed in all areas.
Mr Netshitenzhe said that most of the dti’s planning was based on Vision 2014. The World Cup would act as a catalyst. A document was being compiled. Perhaps only five sectors would be relevant in the planning. The Department of Communications had determined that a lot of opportunities would be provided in the Integrated Communications and Technology sector. He asked how the youth was targeting these opportunities. Some analysis was needed.
He said that tourism also presented a fine opportunity, and the public needed to be advised. The DoT would also have some interest in this aspect. In terms of liquor control, Budweisser would be the only supplier in and near the stadiums. Licences would be needed from the provincial liquor boards. No project had yet been launched to deal with this requirement. This would apply in all nine provinces, and there was a need to influence the provincial boards.
Mr Netshitenzhe stressed that both government and FIFA were committed to development. Some Departments would need to be ringfenced. The dti was talking to government as a whole. A database of entrepreneurs was needed. The government needed to be seen to be implementing its own policies.
The Chairperson said that the dti should co-ordinate all other policies. Government would not compromise on procurement policies.
Mr Swathe said that government should be seen to be implementing its policies. It was not to be left to the dti alone to ensure this.
Ms W Makgate (ANC) said that this was agreed for now, but asked when the project would be implemented. BEE was another direction, and was still applicable. She mentioned the success of women’s co-operatives in KwaZulu-Natal.
Ms M Morobi (ANC) said that South Africa had something to show the world. The culture, arts and crafts should be demonstrated. Things which the citizens of the country could do should be demonstrated and marketed at match venues.
Mr Netshitenzhe replied that the dti would concentrate on four or five main sectors to make an impact. Culture, including the arts, would be one of these sectors. Areas of competence should be identified in what was a diverse community. The challenge was how to promote arts and culture, which was a growing sector. In the document, the ideas around culture would be addressed with the Department of Arts and Culture.
As regards BEE, the responsible unit was dealing with the matter. Many issues had already been concluded in the broadest sense. This was how the dti would be judged. He agreed regarding the co-operatives. Some activities which had been restricted to the agricultural sector now fell under the dti as there was a broader interpretation at present.
He agreed that government should be seen to be implementing its policies. He suggested that the dti was perhaps the only Department to be convincing FIFA that this was being done at present. The building of stadiums would be a convincing show of progress. Many stakeholders were involved, and opportunities would abound for small business. Time was of the essence in order to fulfill deadlines. He foresaw a situation where skills might have to be imported.
Mr Mokonyama said that DoT would take responsibility for the movement of goods. The operational plans included the transport of freight at international, regional and local levels. This would include the transportation of arts and crafts materials. The major emphasis was on the movement of people, but the carriage of freight would not be overlooked.
The Chairperson said that all Departments would have the responsibility to find out from municipalities who was empowered to deliver and where they were located. When that was done the planning could be moved to the next level. For now, however, the Departments could not be allowed to write their own cheques. Close co-operation and monitoring were needed. SRSA was appointed as the leader of the process. The World Cup would be a special event.
The meeting was adjourned.
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