MEMORANDUM ON THE OBJECTS OF THE LOTTERIES AMENDMENT BILL, 2000

1. The Bill seeks to amend the Lotteries Act, 1997 (Act no.57 of 1997) (The Act) by deleting subparagraph (iii) of section 14(2)(i). The aim of section 14(2)(1) of the Act is to reduce both the actual and perceived risk of fraud being perpetrated by employees of the National Lottery operator and employees of the operators’ associated suppliers and business partners. However, it now appears that none of the aforementioned persons have the ability to fraudulently affect the outcome of a lottery draw. Research has also shown that with appropriate controls and independent supervision, the actual risk of lottery fraud is eliminated. This being the case, participation in lottery games by employees, as well as the general public, can be seen as a clear and public confirmation that effective and appropriate controls are in place and that they work. It is suggested that to prohibit any party form participating will inevitably have a negative effect on the public’s perception as to the integrity of the National Lottery.
2. Consultation
The National Lotteries Board was consulted.
3. Financial implications for state
None.
4. Parliamentary procedure
The State Law Advisers and the Department of Trade and Industry are of the opinion that the Bill must be dealt with in accordance with the procedure established by section 75 of the Constitution since it contains no provision to which the procedure is set out in section 74 or 76 of the Constitution applies.

MEMORANDUM ON THE OBJECTS OF THE COMPETITION
AMENDMENT BILL, 2000
1. Scope of the Bill
a. Background
The Competition Act, (Act No.89 of 1998(the Act), makes provision for the establishment of a Competition Appeal Court, which may consider any appeal from, or review of, a decision of the Competition Tribunal. Although the Act came into operation on 1 September 1999, the members of the Competition Appeal Court have not yet been appointed. Experience of working with the Act, as well as comments from members of the Judicial Services Commission, have brought to light various problems that will arise from attempting to constitute the court under the existing provisions of the Competition Act. As such, this Bill is proposed in order to bring about certain changes in the structure, functions and powers of the Competition Appeal Court, in order to facilitate the establishment of this court. It should be noted also that the Court needs to be established as soon as possible in order that parties may exercise their constitutional right to take matters on review or appeal.

b. Discussion
Section 36 of the Act provides that the court will be composed of five members, at least three of whom must be judges of the High Court, while the remaining two members must be ‘lay members’. These latter members are analogous to assessors who participate in selection proceedings of the High Court.
There is a considerable uncertainty regarding the appropriate procedure to be followed in appointing the two lay members of this Court. While the Act provides that they will be appointed by the President, legal opinion is divided as to whether or not the correct procedure is appointment by the Judicial Services Commission or appointment by the President on the recommendation of the Minister. Furthermore, one legal opinion suggests that the procedure set out in the Act may well violate the Constitution in so far as it does not make the provision for a commensurate degree of protection of judicial independence for lay members, as is accorded to those members of the Court who are High Court judges.
In order to allay any uncertainty that may thus arise, specifically any constitutional uncertainty, it is proposed that this category of members be removed from the Act entirely. In this regard it should be noted that the services of assessors in High Court proceedings are generally only required at trial stage where evidence on the facts of the case is evaluated. As opposed to this, appeal hearings turn to focus on matters of legal interpretations, an area in which lay members would not necessarily be qualified to assist the Competition Appeal Court. This therefore explains the need for introducing an amendment that will effectively change the structure of the Competition Appeal Court.
In addition the present Act requires that a full Court or bench hear every matter that is referred to the Competition Appeal Court. However, it is clear that in many instances matters of a purely technical or procedural nature will have to be heard and decided upon by the Court. In such instances, the nature of the subject matter does not necessitate the sitting of a full bench to decide upon the issue that has been referred to it. Indeed, such matters can be easily be handled by a single member of the Court and this Bill proposes to amend the Act to cater for precisely this situation. This amendment will allow the Court to function more efficiently and will help to prevent the creation of backlogs in the system.
Finally, the Bill clarifies the review and appeal powers of the Court. These serve to confirm the review and appeal powers of the Court as well as limit the power of the Court to consider appeals in interim or interlocutory matters, in common with High Court practise.

2. Consultative process
The Department of Justice and the Chief Justice have been consulted with respect to the proposed amendments.

3. Organisational and personnel implications
The proposed amendments do not have any personnel implications in that the Court has not yet been established. The reduction in size of the Court will neither have any effect on existing personnel not create any need for additional personnel.

4. Financial implications
The are no financial implications that arise from the proposed amendments in terms of additional spending. Rather, the amendments will reduce the running costs of the Court by removing the category of lay members from the Court.

5. Parliamentary procedure
The State Law Advisers and the Department of Trade and Industry hold the view that the Bill must be dealt with in accordance with the procedure established by section 75 of the Constitution since it contains no provision to which the procedure set out in section 74 or 76 of the Constitution applies.

LIQUOR BILL
To maintain economic unity and essential national standards in the liquor trade and industry; to regulate the manufacture distribution and sale of the liquor on a uniform basis; to facilitate the entry and empowerment of new entrance into the liquor trade; and to address and reduce the economic and social costs of excessive liquor consumption; and to provide for matters connected therein.

National Gambling Amendment Bill
To amend the National Gambling Act, 1996, so as to add certain definitions and to amend existing ones; to provide for the regulation and co-ordination of certain matters relating to horse racing and Internet gambling; to make provision for the establishment of the National Gambling Policy Council; to amend the composition, objects and functions of the Board; to extent the functions and powers of inspectors; and to provide for matters connected therein.

Competition Second Amendment Bill
To make provision for certain important changes in respect of the merger control.