Hansard: NCOP: Appropriation Bill: Vote No 31 - Mineral Resources
House: National Council of Provinces
Date of Meeting: 20 May 2010
Summary
No summary available.
Minutes
START OF DAY
FRIDAY, 21 MAY 2010 PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES________________________________
The Council met at 09:35.
The Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.
MOTIONS WITHOUT NOTICE
START OF DAY
HECTOR PIETERSON PHOTOGRAPHER, SAM NZIMA, INVITED TO INTERNATIONAL PHOTO EXHIBITION
(Draft Resolution)
Mr S S MAZOSIWE: Chairperson, I move without notice:
That the Council -
(1) notes that Sam Nzima, the photographer who took the picture of the mortally wounded Hector Pieterson on 16 June 1976 during the Soweto uprising, has been invited as a VIP to an international photo exhibition;
(2) further notes that Nzima will be accompanied by other South African journalists who played a role during the riots in 1976 when the youth fought vigorously against the apartheid government's violation of the rights of black South Africans, to be part of an exhibition that will also look at apartheid and where Denis Goldberg will be launching his autobiography: The Mission at the South African embassy in Berlin; and
(3) takes this opportunity to congratulate Nzima and the other South African journalists on their recognition in uncovering the atrocities of the apartheid regime, particularly when it attacked harmless children in 1976.
Motion agreed to in accordance with section 65 of the Constitution.
The CHAIRPERSON OF THE NCOP: There were hands here. No, no, I am not calling you. I just said that there hands here. [Laughter.] I am just checking where the hands are.
Ms E C VAN LINGEN
Mr S S MAZOSIWE
TERMINATION OF ROAD RECONSTRUCTION IN CAMDEBOO AND IDWEZI MUNICIPALITIES IN THE EASTERN CAPE
(Draft Resolution)
Ms E C VAN LINGEN: Chairperson, I hereby move without notice:
That the Council -
(1) notes that the Department of Transport in the Eastern Cape has terminated all road reconstruction and tarring operations in the Camdeboo and Ikwezi Municipalities;
(2) further notes that –
(a) the following main arteries for economic development are affected, namely the R75 (Graaff-Reinet to Port Elizabeth), the R337 (Jansenville-Klipplaat) and the R338 (Aberdeen to Jansenville-Klipplaat Road);
(b) these roads would have been reconstructed and tarred with the Expanded Public Works Programme funding;
(c) the Aberdeen-Klipplaat Road will cut 37 km from the North-Western entrance to Port Elizabeth (wool and mohair trade port);
(d) this abrupt abandonment of these municipalities brings further unemployment into the area, limiting economic growth; and
(3) calls on the Minister to investigate the sudden discontinuation of these projects as the above projects should be on a capital expenditure programme, which cannot just be disregarded.
Motion agreed to in accordance with section 65 of the Constitution.
Mr D A WORTH
Ms E C VAN LINGEN
ANC ON DRIVE TO RECRUIT 1 MILLION MEMBERS
(Draft Resolution)
Mr D A WORTH: Chairperson, I move without notice:
That the Council –
(1) notes, from newspaper and radio statements, that the ANC is on a drive to recruit 1 million members;
(2) further notes that in view of the low membership of the ANC, the DA suggests that the ANC should sign up new members in the towns where the people are demonstrating and rioting over poor service delivery, such as in Koffiefontein in the Free State province on 20 May 2010; and
(3) suggests that their councillors and legislature members should rather purchase armoured vehicles to visit their constituencies instead of the luxury vehicles purchased at a cost of R11 million in the Free State.
The CHAIRPERSON OF THE NCOP: Is there any objection to the motion? [Interjections.] Order! In light of the objection, the motion may not be proceeded with. The motion without notice will become a notice of a motion and will be printed in the next Order Paper.
Ms B P MABE
Mr D A WORTH
LAUNCH AND ISSUE OF PARK-AND-RIDE AND PARK-AND-WALK TICKETS IN CITY OF JOHANNESBURG FOR WORLD CUP MATCHES
(Draft Resolution)
Ms B P MABE: Chairperson, I move without notice:
That the Council -
(1) notes that yesterday, 20 May 2010, the City of Johannesburg launched and issued for the first time park-and-ride and park-and-walk tickets for fans attending World Cup matches in Johannesburg;
(2) further notes that Metrorail will provide 10 trains dedicated to transport for matches across Johannesburg and eight in Pretoria and that there will be 200 minibus taxis operating from O R Tambo International Airport, and from Westgate and Pretoria stations; and
(3) takes this opportunity to congratulate the City of Johannesburg on its readiness to transport spectators to matches across the city and says to the people of South Africa and the global community, "Feel it, it is here. We are ready!"
Motion agreed to in accordance with section 65 of the Constitution.
Ms B V MNCUBE
Ms B P MABE
PARENT TERRORISING PUPILS AND TEACHEERS AT NOORDGESIG PRIMARY SCHOOL
(Draft Resolution)
Ms B V MNCUBE: Chairperson, I move without notice:
That the Council -
(1) notes with utter discomfort, reports of a gun-wielding parent who is terrorising pupils and teachers at the Noordgesig Primary School in Soweto;
(2) further notes that school teachers and learners are traumatised to such an extent that some learners are refusing to attend school and teachers fear for their lives;
(3) takes this opportunity to condemn in the strongest possible terms these lunatic and reckless acts as a blatant violation of the educational rights of the children; and
(4) calls on the MEC for Police and the MEC for Education in Gauteng to ensure the safety of the school and that the perpetrator of these cowardly acts is brought to book immediately.
Motion agreed to in accordance with section 65 of the Constitution.
Mr D B FELDMAN
Ms B V MNCUBE
RETIREMENT CONTRIBUTIONS NOT BEING PAID INTO HOLDING FUNDS
(Draft Resolution)
Mr D B FELDMAN: Hon Chair, I move without notice on behalf of Cope:
That the Council -
(1) notes with grave concern that there are employers in South Africa who are deducting retirement contributions from their employees' pay packages but who are not paying the money into the appropriate holding funds;
(2) further notes that in the past the non-payment of contributions was a criminal offence, but that with the establishment of a financial services enforcement committee this had fallen away; and
(3) therefore calls on the Financial Services Board to name and shame such employers and that further action be taken to begin to impose severe penalties on errant employers through its enforcement committee.
Motion agreed to in accordance with section 65 of the Constitution.
Mr M W MAKHUBELA
Mr D B FELDMAN
CORRUPTION IN GOVERNMENT AND LOOTING OF STATE COFFERS BY ANC CADRES
(Draft Resolution)
Mr M W MAKHUBELA: Chairperson, I move without notice:
That the Council –
(1) notes that corruption in government has become so endemic that veteran journalist Allister Sparks was moved to remark that corruption is now in the bones of the ANC;
(2) notes further with despair, the regularity with which ANC cadres are mindlessly and wantonly looting state coffers;
(3) also notes as further proof of this systematic looting, the irregular and repeated awarding of a tender for catering to Nonkululeko Mhlongo without the KwaZulu-Natal government complying with the 21-day period for review or without gazetting the decision, as required by Treasury regulations; and
(4) calls on the government to clean up its act at once if it does not want to utterly betray the golden legacy of liberation and through that failure, shame the nation.
The CHAIRPERSON OF THE NCOP: Is there any objection to the motion? [Interjections.] Order! In light of the objection, the motion may not be proceeded with. The motion without notice will become a notice of a motion and will be printed in the next Order Paper.
Mr M J R DE VILLIERS
Mr M W MAKHUBELA
BAFANA BAFANA TO PLAY ANOTHER PREPARATORY MATCH BEFORE WORLD CUP KICKOFF
(Draft Resolution)
Mr M J R DE VILLIERS: Chairperson, I move without notice:
That the Council -
(1) notes that Bafana Bafana will play another preparatory match against Bulgaria before the 2010 Fifa World Cup kickoff on 11 June 2010;
(2) encourages Bafana Bafana players to take this match as if they were playing for the World Cup trophy;
(3) recognises that the organisers struggle to get the buy-in of other overseas teams to be available to play one more match before the kickoff of the first match in the World Cup; and
(4) wishes the team good luck and success in this match and that the spirit of the players and all their supporters rise to the occasion. Go Bafana, go! Feel it, it is here!
Motion agreed to in accordance with section 65 of the Constitution.
Mr T A MASHAMAITE
Mr M J R DE VILLIERS
MODIKA SECONDARY SCHOOL BROKEN INTO FOUR TIMES IN PAST THREE YEARS
(Draft Resolution)
Mr T A MASHAMAITE: Chairperson, I move without notice:
That the Council -
(1) notes that thugs have broken into the Modika Secondary School at least four times in the past three years and stolen groceries from the school's nutrition programme, leaving 299 pupils without proper nutrition;
(2) takes this opportunity to condemn in the strongest possible terms these selfish acts of people who have no regard for the law; and
(3) calls on the MEC for Safety and the MEC for Education in the Limpopo province to intervene to ensure that the school is protected and that the perpetrators of these crimes are brought to book and feel the full might of the law.
Motion agreed to in accordance with section 65 of the Constitution.
The CHAIRPERSON OF THE NCOP: Mr Nyambi and hon Mashile, you have one minute each to move your motions.
Mr A J NYAMBI
Mr T A MASHAMAITE
POLICE RECOVER STOLEN ELECTRICAL APPLIANCES NEAR SWAZILAND BORDER
(Draft Resolution)
Mr A J NYAMBI: Chairperson, I move without notice:
That the Council -
(1) notes that after a tip-off by the community of Nkomazi Municipality in Mpumalanga, police recovered stolen electrical appliances in Mgobodzi near the border of Swaziland; and
(2) takes this opportunity to congratulate the people of Mgobodzi on their commitment to working with the police in fighting crime in the area.
Motion agreed to in accordance with section 65 of the Constitution.
Mr B L MASHILE
Mr A J NYAMBI
LONG WAIT FOR OLDER MALES TO ACCESS STATE SOCIAL SECURITY GRANTS CUT SHORT
(Draft Resolution)
Mr B L MASHILE: Chairperson, I move without notice:
That the Council -
(1) notes that the long wait for older males to access state social security grants was cut short yesterday when the SA Social Security Agency, Sassa, in Limpopo issued the first payments to male beneficiaries;
(2) further notes that in the past older men had to wait until they turned 65; and
(3) acknowledges that this important initiative and breakthrough is part of the ANC-led government's commitment to looking after the wellbeing of its senior citizens.
Motion agreed to in accordance with section 65 of the Constitution.
The CHIEF WHIP OF THE COUNCIL
Mr B L MASHILE
RATIFICATION OF DECISION OF RULES COMMITTEE TO RECONFIGURE FUNCTIONS OF HOUSE CHAIRPERSONS
(Draft Resolution)
The CHIEF WHIP OF THE COUNCIL: Chairperson, I move without notice:
That the Council-
(1) ratifies the decision of the Rules Committee to reconfigure the functions of the two House Chairpersons as follows -
(a) House Chairperson: Committees and Oversight; and
(b) House Chairperson: Intergovernmental Relations, Co-operative Governance and Members' Support.
Motion agreed to in accordance with section 65 of the Constitution.
The CHAIRPERSON OF THE NCOP
The CHIEF WHIP OF THE COUNCIL
The CHAIRPERSON OF THE NCOP: Hon members, that concludes the time for motions. You should remember that only 20 minutes are given to motions. I normally allow people extra time, but you should know that we allocate 20 minutes to do the motions. So the shorter your motions are the better.
DIFFERENCE BETWEEN A NOTICE OF A MOTION AND A MOTION WITHOUT NOTICE, AND CLARITY ABOUT MR GROENEWALD'S MOTION
(Ruling)
Before the Secretary reads the first Order of the Day, I would like to make a ruling. I don't see Mr Watson and I don't see Mr Groenewald. The ruling is about Mr Groenewald's motion and the clarity asked for by Mr Watson. Do you want me to put it on hold or can I give the ruling? Will you convey the message? Yes. Okay.
Hon members, I would like to make a ruling on a point of order raised by the hon Watson on a notice of motion, moved by the hon H B Groenewald on Wednesday, 19 May 2010. The hon Watson sent me a note enquiring about the impact of the notice, since, according to him, the notice gave figures and facts but ended by calling on the House for an immediate investigation. I indicated that I would make a ruling on the matter at a later stage.
Hon members, I would like to bring to the attention of the House that there is a difference – I'm saying this very slowly now - between a notice of a motion and a motion without notice. There is a difference between the two. A notice of a motion is intended to inform the House that at the next sitting day of the House, a member intends to move the motion. It does not require any decision by the House. A motion without notice, on the other hand, once agreed to by the House, becomes a decision of the House.
This means that any action that is required to be taken would be communicated to the relevant authorities, and a report-back to the House would be expected. I am explaining this to conscientise and to make members aware that if they would like the House to take any steps on any motion, they should move it as a motion without notice in order to afford the House the opportunity to adopt it first.
Therefore, I rule that the notice of motion by Mr Groenewald does not require the House to take any action. Furthermore, as I stopped Mr Groenewald before he could finish reading his motion, the motion should be printed in full on the next Order Paper. That is my ruling. Thank you very much. [Applause.] I hope that will be communicated to Mr Groenewald. You have a copy of the ruling if you want it.
.../TM
END OF TAKE
The MINISTER OF MINERAL RESOURCES
The CHAIRPERSON OF THE NCOP
APPROPRIATION BILL(Policy debate)
Vote No 31 - Mineral Resources:
The MINISTER OF MINERAL RESOURCES: Hon Chairperson of the NCOP Mr Mahlangu, hon chairperson of the select committee Mr Freddie Adams, hon members and the select committee members of the NCOP, officials of the Department of Mineral Resources, ladies and gentlemen, it gives me pleasure to introduce to the National Council of Provinces the debate on the Budget Vote of the Department of Mineral Resources for the 2010-11 financial year.
On 10 May 2009, President Jacob Zuma announced the re-organisation of his Cabinet and government departments. Amongst other things, the Department of Minerals and Energy was split into two, namely the
Department of Mineral Resources and the Department of Energy, respectively.
Although the split was announced in May, it could only take effect administratively from 1 April 2010, since the two departments shared one budget. During the transitional period, the DMR entered into a shared support services agreement with the Department of Energy in terms of which the DMR provided support services to the Department of Energy until the end of March this year.
I am happy to report that the transitional arrangements have now come to en end. We have now restructured in line with our new mandate, but owing to limited financial resources the Department of Mineral Resources will be implementing the approved organisational structure in phases. We intend to address our human resource challenges through a review of our integrated human resource plan.
The process of splitting Department of Minerals and Energy's budget was successfully finalised in January 2010. This process culminated in the final allocation of R1,3 billion for the Department of Mineral Resources.
In response to shrinking financial resources, the department introduced a number of cost-containment measures and stringent controls to achieve more with less. These included scaling down the number of delegates on overseas trips, suspending international conferences and seminars, hosting meetings in close proximity to the department or in free venues, using public service circulars or free advertising for positions below director, and so on. We will continue on this path.
My department remains committed to sound financial management and discipline. We will continue the legacy of obtaining an unqualified audit opinion as we did in the past five years under the erstwhile Department of Minerals and Energy.
During 2009-10, my department managed to channel 45% of procurement towards historically disadvantaged South Africans. We also conducted supplier information sessions in all nine provinces. In future, we will be developing a supplier development strategy in consultation with the Department of Trade and Industry.
The mining industry continues to form the backbone of the South African economy, accounting for more than half of exports. The challenge, however, is that most minerals are exported as ores rather than high-value intermediate or finished products. In order to assist the country to leverage long-term benefits from its substantial mineral endowment, we have developed a mineral beneficiation strategy, which seeks to facilitate further economic diversification, expedite progress towards a knowledge-based economy and create decent and sustainable jobs. We are now finalising our consultations on the strategy which will soon be submitted to Cabinet for approval.
Prior to 1991, mining houses in this country were not legally required to rehabilitate the environment after mining had taken place. This has resulted in a legacy of unrehabilitated, derelict and ownerless mines, which now pose significant health and safety risks to nearby communities and a cumulative environmental impact on the surrounding environment.
My department has prioritised the rehabilitation of derelict and ownerless mines in Limpopo, Mpumalanga, Gauteng, the North West and the Northern Cape. In prioritising our rehabilitation, we have been guided by the proximity of derelict and ownerless mines to communities, the health and safety risks for communities, as well as the environmental impact.
In the past, infrastructure development occurred with minimal consideration for potential geohazards, such as sinkholes in dolomitic topography. Examples of this include the Khutsong township in Merafong and Katlehong on the East Rand, where both houses and a hospital are at risk of collapsing due to these sinkholes.
To address these challenges, we will be introducing the Geoscience Amendment Bill to Parliament shortly. The main focus of the Bill is to effectively manage infrastructure development in dolomitic terrains, as well as to empower the Council for Geoscience to be an advisory council in respect of geohazards and to enable the council to become the custodian of all geotechnical data and technical information relating to exploration and mining.
In response to the harsh economic downturn that adversely affected the mining industry, my department established the Mining Industry Growth, Development and Employment Task Team, in short "Migdett", a tripartite initiative consisting of various government departments, business and organised labour. The mandate of Migdett was to recommend short-term interventions to mitigate the effects of the global economic crisis on the mining industry and to develop interventions that will position South Africa's mining industry for sustainable growth.
The task team has completed phase 1 of its mandate, which has enabled the industry to contain job losses to less than 50 000, representing half of the initial estimate. At the beginning of this year, the task team began working on the second part of its mandate. This has culminated in a mining summit that was organised on 30 to 31 March under the auspices of Migdett with the explicit aim of developing a strategy for the sustainable growth and meaningful transformation of South Africa's mining houses.
We have made great strides in identifying issues that need to be addressed to enhance the growth, global competitiveness and transformation of South Africa's mining houses in a manner that meets the expectations of all the industry's stakeholders. Equally, it is encouraging that industry stakeholders are prepared to rise to the challenge of the "greenification of the mining sector".
The issues of the green economy offer a new vision for mining activities of the future as they require us to ensure that mining does not leave behind a mix of negative social, environmental and human legacies - and we are determined to ensure that mining does not leave a negative legacy on the landscape of our country.
My department has embarked on an integrated intervention approach in respect of conflicts between mining companies and communities and such interventions are indeed yielding positive results. We have started this process in Matlotlo, Sekhukhune and Mokopane in Limpopo. We are now going to embark on the same process in Taung in the North West, and will proceed to other affected areas.
The department will work closely with municipalities to improve integrated development plans and this will lead to a significant alignment in companies' social and labour plans. The biggest service delivery hurdle related to this area of our work is the time taken at municipal or community level to finalise agreements on social and labour plans. From a regulatory perspective, we will rigorously review social and labour plans before approval and increase the frequency of monitoring.
Improvement of co-operative governance is an issue that my department will henceforth focus on. It is of paramount importance that other departments with whom we consult, eg Water Affairs, Rural Development and Traditional Affairs, interact with the department in such a manner that synergy and common goals are achieved.
Improved mine water management, through environmental management programmes and plans, is an issue that will receive more attention, specifically with regard to water issues in, for example, Mpumalanga, Limpopo and the Witwatersrand Gold Basin.
Hon Members of the NCOP, the mining industry has suffered 45 fatalities in the year to date compared to 57 for the corresponding period last year. Although this represents a 21% decline in mining fatalities year-on-year since the beginning of 2010, we are deeply concerned about the latest spate of fatalities in which six employees died due to falls of ground and a blasting accident within the first week of May.
These fatalities occurred at Simmer and Jack in North West, Samancor Eastern Chrome Mines in Limpopo and Harmony's Joel Mine in the Free State. The mining companies that have had the most fatalities since the beginning of the year are AngloGold Ashanti, Harmony Gold Mines, Simmer and Jack, Anglo Platinum, and Goldfields. This remains a concern for us.
The major causes of fatalities are falls of ground, and transportation and machinery accidents. In dealing with these pressing occupational safety challenges, the department will continue with the following interventions: the sustained issuing of instructions for stopping either sections of a mine or even the entire mine where necessary, in terms of the provisions of section 54 of the Mine Health and Safety Act; improved enforcement and prosecution in line with the recent amendments to the Mine Health and Safety Act; and continuing engagement with the CEOs of mining companies to highlight our concerns regarding the current fatality trends and the demand for tangible commitments to improving health and safety.
Work is also being done to integrate seismic networks and systems to improve transparency and access to seismic information. This will ensure that appropriate actions are proactively taken by mines in dealing with high-risk areas that are prone to seismic events. A pilot project will be carried out in Gauteng and the North West as these are the areas prone to seismicity. This project will be extended to cover other regions.
Occupational health impacts are not immediate and hence difficult to quantify. Silicosis remains a major cause of premature retirement and death at South African mines owing to excessive silica dust exposure. On the other hand, tuberculosis continues to be a serious challenge for the mining industry, and HIV and Aids exacerbate this challenge. Lastly, noise-induced hearing loss is also a significant health hazard owing to exposures to high levels of noise in the working environment.
In dealing with health-related challenges, a new chief directorate for occupational health has been established and additional occupational health inspectors will be appointed in our regional offices. On TB, HIV and Aids there are ongoing projects to evaluate the policies and programmes of mines and to ensure alignment with the national strategic programmes of the Department of Health.
The current legislation on compensation matters in the mining industry needs an urgent overhaul in order to address issues relating to access to services and information, turnaround time in payments and compensation amounts. There are collaborative efforts between my department and the Department of Labour and the Department of Health respectively to review the compensation legislation and to develop an integrated compensation system.
The health and safety problem goes beyond mine boundaries. We have been receiving a series of complaints from communities located around mines relating to blasting operations that cause damage to houses, nuisance dust and noise. The major problem areas are in Limpopo, Mpumalanga and the North West. These issues were also raised sharply during the NCOP's public hearings in Sekhukhune earlier this year.
We are continually engaging the affected mines to ensure compliance and, where necessary, issue stoppage notices until such time that appropriate measures are put in place to eliminate the impact of mining activities on neighbouring communities. We are also developing a comprehensive strategy to deal with problems related to blasting, ground vibration, noise and dust control.
In ensuring further improvements on health and safety, the Mine Health and Safety Council has budgeted R30 million to support the achievement of zero harm to mine workers through a comprehensive research programme. The key research themes for the 2010-11 financial year include the prevention of rock falls and rock bursts, the eradication of tuberculosis and noise-induced hearing loss in the mining industry.
The impact of illegal mining continues to be a concern in the mining industry. My department has referred this issue to the interministerial security cluster, as this is a criminal matter. The Mining Qualifications Authority has allocated R280 million to support the mining and minerals industry with skills development. In support of artisan development, the Mining Qualifications Authority has increased the grants for artisan development with effect from 1 April 2010.
The department will also discuss issues relating to the training of artisans with the Minister of Higher Education and Training, the hon Minister Nzimande. We may, for example, consider bringing back retired artisans to train and transfer skills to young, aspiring artisans. I would further encourage mining companies to play a proactive role in the broader skills development in the sector.
The Mining Qualifications Authority has forged partnerships with public further education and training colleges, for various learning interventions required in the mining and minerals sector. At least 23 further education and training – FET - colleges were identified in all provinces as a support learning base for the training of artisans. There is a need to partner with FET colleges in areas where there is significant growth in mining.
In conclusion, hon members, I want to emphasise the important oversight role that the National Council of Provinces can potentially play with regard to the implementation of social and labour plans as they relate to integrated development plans at provincial and local government levels.
Related to this, I must also caution against the increasing tendency of communities to vent their frustrations with service delivery on mining companies who operate close by. I raise these issues here, in the hope that you will assist us with your oversight duties to ensure that service delivery takes place, as it should.
For our part, as the department, we will ensure that the mining industry contributes to socioeconomic development in South Africa and mines in a responsible and sustainable manner.
When it comes to the 2010 World Cup, I would also like to join members by saying: Feel it, it is here! I realise that most members today have not adhered to the call by the national government to support "Football Friday". I hope this is just an oversight today and that in future we will ensure that we are able to adhere to the call made by government.
Chairperson, one member says that they don't have the T-shirts. We have to buy the T-shirts, all of us! That is the way we must support and embrace our team. We can't say that we expect Mahala things. That is the wrong culture. We must develop a culture of taking responsibility. I thank you. [Applause.]
The CHAIRPERSON OF THE NCOP: I think the message is loud and clear, hon Minister. Thank you very much.
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END OF TAKE
Mr F ADAMS
The MINISTER OF MINERAL RESOURCES
Mr F ADAMS: Hon Chairperson, hon Minister, director-general, deputy directors-general, staff and hon members, we have to unlock the wealth in the ground of our country to the benefit of all our citizens. We need to grow this industry in order to create decent, safe and permanent jobs for South Africa. We have to turn around the relative decline of the past few years, with diamonds taking a blow, and become more internationally competitive in this regard. We have noticed growth in the local industry.
Our hon Minister and her team are doing just that: by collaborating in trust and taking steps to transform the industry to become a crown jewel of our country, and to build a stronger economy. The bar has been raised and the budget estimate of just over R1 billion reflects that. We have also noticed that the department is doing more with less money. We commend them for their work and especially for the fifth consecutive unqualified audit opinion. We also thank the Minister and her department for this budget preparation and wish them everything of the best for the rest of the year ahead.
We agree with the Minister that transformation is vital, and that the industry still has a long way to go. We shall keep a keen eye on developments in this regard.
Together with environmental representation, we also need to take a closer look at transforming the industry to have more value added here in South Africa as far as possible. New avenues should be explored to have secondary industries turning more of our raw materials into higher value products that could earn more foreign exchange for our country and create jobs for domestic labour.
More technology products need to be developed and produced here in South Africa. As a leading mining country, our skilled and experienced workers are drawn to exploration and operations all over the world. With this pool of knowledge, we could surely start a secondary industry to feed some of the global mining needs and develop new applications that would add to export value of all these mines utilising our people power.
We also have highly skilled people working on seismic and other information technology that could be expanded. We therefore welcome the allocations for research, geosciences and seismic understanding. This is not just to understand and prevent land-falls, but also to add to a safer working place for our much-valued workers. We do not only develop and train workers in various ways, but we also really care for them. That is the work of the ANC government.
We welcome the dedication and commitment to the health and safety of our mining workers of whom we still lose too many every year due to fatalities and disabling injuries. Every year more than 150 are killed, but we also have a very worrying annual figure of hundreds who suffer serious injuries that render them unable to continue their work in the industry.
We accept that the mining environment is risky, but we should also do everything possible to limit the dangers and exposure of our workers to these ills. Therefore, the Minister's campaign of zero harm to workers, other people, communities, or property around the mines is indeed a step in the right direction, as is improving compensation.
Through regulation, through raising standards in the industry and through deliberate attempts to raise safety awareness, we have seen improvements and steady advances in stabilising the environment and protecting people from harm. We have to increase our efforts, as we agree that any fatality is one too many. Every minor injury or preventable disease erodes the productivity of our industry.
We also welcome the no-nonsense stance of the Minister and her department to end and bring to book illegal mining operations. Besides robbing organised mining by stealing from them, they also enter a specialised environment that is hazardous to uncontrolled operations and could lead to very tragic consequences as we have witnessed.
People risk their lives in unlawful enterprises that place the jobs of other workers under pressure. These criminals indeed also steal jobs from honest workers. Getting the criminal justice system and other departments to assist in this matter is supported. We also welcome improved enforcement and prosecution combined with compliance inspections.
We have to broaden the base of mining and make the most of our mineral wealth. This means making it possible to prospect and mine. We therefore welcome the Minister's determination to halve the time to process applications for rights. We also welcome the Minister's resolve to give more people a real opportunity to benefit from mining and guard against fronting and other misrepresentations. The department is also commended for channelling almost half of its expenditure to historically disadvantaged South Africans.
With our planning to wind down operations and to rehabilitate the environment to reduce and prevent leaching or spillage into the water, we also need to concentrate on the end of life for a mine or mining in any area.
Too often, we see decay, slums or ghost towns after the mine owners move out. This leaves many people desperate for jobs. Of late, mining villages have been turned into retirement opportunities, but a lasting and sustainable solution must be found to have the benefactors contributing to the support of host communities and those left behind when operations cease, especially on the West Coast. Exploiting without putting in place a lasting legacy is not on. We need only look at other areas to see that people suffer after the mines close.
We mine almost 60 minerals, I understand. This includes a number of minerals also taken from the earth here in the Western Cape. Many residents believe that there are no mines in our province. Then there are special breeds of people hell-bent on not allowing any mining activity anywhere in the Western Cape. With a special elite looking narrowly at their own interest, these people have benefitted and amassed reserves to fight, and they cite many reasons why development would spoil and denigrate the Western Cape, its mountains, wine lands and other pleasing features. They are totally opposed to any development aimed at unlocking the wealth of the land. All they care for are their own pieces of land.
We have heard accounts of people who make it their job to oppose developments. In one instance, the owner offered to retract his objection at a handsome price of half a million rand. This amounts to extortion. Some even object to developments while they themselves are into sand and aggregate mining on adjacent properties. Perhaps we should look at different mechanisms to identify and adjudicate exploration and mining applications, especially with a view to supporting emerging mining companies who cannot afford long and drawn-out fights to overcome short-sighted objections. Perhaps the envisaged, single, state-owned mining company could play a role here, Minister.
We wish the department well in organising the first international geological congress on the continent in 2016. Lastly, let me thank the Minister, the members of the committee, the director-general, the deputy directors-general, the staff in the Ministry, the department and the committee secretary Ms Grace Dinizulu for a sterling job done so far. We support the Budget Vote. I thank you. [Applause.]
ZC/
END OF TAKE
Ms E C VAN LINGEN
Mr F ADAMS
Ms E C VAN LINGEN: Hon Chairperson, hon Minister and colleagues, the mining industry is very big and contributes US$21 billion or 7% to the South African Gross Domestic Product. With the recession, this has shrunk by 32%. Only China, the USA, Australia and Brazil have bigger industries than what we have in South Africa, while Canada, Russia, India and Chile have smaller mining industries. So South Africa has the fifth biggest mining industry in the world.
Broad-based black economic empowerment has amounted to R150 billion in BEE deals or 33% of similar transactions over the past 11 years. This has only been possible because there has been a good balance between risk and reward. Today, I plead for transparency in the mining industry in South Africa and the fact that we must stay within our legal framework without abusing the system.
The six minutes that I have been granted will not be enough for me to say all the things of importance that I should, but I will flash through a couple with the Minister. I want to congratulate her on her on her "zama-zamas" arrests in Mpumalanga in December last year and early this year. She has really followed up on her June and July appearance. Thank you, Minister. We must not lose sight of this. Criminals are like children: when they get quiet, you know they are busy doing something - and this is a R10 billion industry, so we have to close in on the organised crime units.
With regard to nationalisation, Minister, you have given us your word that you will not consent to it. I just want to say that if national mines are going to be run like Alexkor, we will be in deep trouble because the landscape looks like that of the moon - it is only bare bedrock and no rehabilitation has been done.
The CEO does not attend her office in Alexandra Bay. She flies in from Johannesburg once a month at a cost of R40 000 and that does not include her Rosebank office facilities. The very next week, however, Alexkor came to Parliament and asked for R7 billion for the company's support. I know this is not your baby, but you understand what I mean by nationalisation.
The environmental issues at Alexkor are appalling. But what I actually want to spend time talking about today is the small-scale diamond miners and their industry. At the moment, there are mining contracts being advertised and the closing date is 11 June.
The CHAIRPERSON OF THE NCOP: Hon Nesi, your hand is up. Why have you put up your hand?
Mr B NESI: I want to ask the member if she is prepared to take a question.
The CHAIRPERSON OF THE NCOP: Hon member, are you prepared to take a question?
Ms E C VAN LINGEN: No. According to Rule 33, I think I am not allowed to be interrupted.
The CHAIRPERSON OF THE NCOP: She is not prepared to take a question. Continue, hon member.
Ms E C VAN LINGEN: The chairperson of the community property association said that he was prepared to assist with the financing of these applications of R100 000 each if he could get a fair share.
The women's group, the Witvoorkop Vroue Groep, named after a farm, sold a 90,3-carat diamond and 6,1-carat pink diamond in 2004, but, unfortunately, they believe they didn't get the full price as a result of the closed system - and there is no way that they can get to the truth. The only thing they can do now is to go to the Constitutional Court. This is in spite of section E.3 of the De Beers Diamond Best Practice Principles in terms of which full disclosure at all levels of the diamond distribution chain must be adhered to. That is exactly what they claim to be doing, but it is not the truth.
There are certain illegalities in the BEE Mining Charter and Mineral and Petroleum Resources Development Act. They concern the small-scale marine mining community who have a rich ocean mining heritage dating back to the 1970s and who are world leaders in shallow-water diamond mining. They own over 75 of the diver mining units and are 79% black-owned, but in spite of these impeccable credentials, do not own one of the approximately 45 sea mining rights in the Northern Cape.
Indeed, while some are being obscenely enriched in the mining industry, the coloured small-scale marine miners in the Northern Cape have never been worse off. There are many mining vessels lying on the Port Nolloth Beach, an example of how bad things are for them. This whole industry is also in a bad situation owing to a lack of equitable access to the market, something we need to pay attention to.
Minister, I think my time is up. I would like to meet with you afterwards and see what we can do to improve the situation. Thank you for whatever you have done and we appreciate your presence here today. Thank you. [Applause.]
The CHAIRPERSON OF THE NCOP: Ms van Lingen, could you take your seat. Order, hon members! Mr Harris, could you also take your seat. Just sit where you are. Now, Rule 33 must be read properly. Rule 33, which Ms van Lingen mentioned, says: "No member may interrupt another member who is addressing the Chair, except to call attention to a point of order or a question of privilege." I just want people to understand it that way.
/Mohau/VM
END OF TAKE
Mr B A MNGUNI
Ms E C VAN LINGEN
Mr B A MNGUNI: Chair, hon Minister, colleagues, ladies and gentlemen, South Africa is reported to be the richest country in minerals in the whole world, and it has been found that it also has the highest inequality in the world. We were the last colonised country to gain independence and to usher in a bloodless constitutional democracy in Africa, yet we have the highest infant mortality rate in the world.
The wealth of the country shall be shared amongst those who live in it, so says the Freedom Charter. But the wealth of the country continues to be looted by the multinational companies, who come to Africa under the guise of investment. Our mineral resources have been spirited away by the likes of Anglo American, now called AngloGold Ashanti, which has moved its headquarters to London and relisted on the London Stock Exchange.
There are a couple of other companies, such as BP and Shell, that are pulling out of Africa for reasons best known to them. The question remains: Is the wealth of this country shared amongst those who live in it?
As we put a stamp of approval on your budget, hon Minister, I would like to argue that the broad-based black economic empowerment policy, as implemented currently, is a double-edged sword that creates the black middle class and upper class that live in leafy urban areas and on golf estates, while the poorest of the poor, who live in Mandela Park in Thabong in the Free State, are still looking forward to empowerment.
As much as we know that the policy does not mean that historically disadvantaged individuals necessarily need to have equity in companies they are working at or participating in, we cannot say that we have transformed and deracialised the mining sector without having black people being owners of those mines.
I take solace in the fact that mineral policy and promotion programme has been allocated the biggest share of the budget: R429 million. We hope that the Minister and the department will work hard to ensure that the Mining Charter is implemented fully.
We do not know if the department will meet its target of 26% of the sector being in black hands by 2014. That does not mean, in my view, black faces in top management and on boards of directors in the industry. It means ownership. We were informed that the department intends to fast-track the upward mobility of black people in the industry through social labour plans. That is, however, still not ownership.
The department will continue supporting small and medium enterprises with funds and some technical skills. This is highly appreciated, as the mining industry is a capital-intensive one. However, this can only be done with small-scale mining only. It appears that it is only the diamond small-scale mining in the Northern Cape and the North West where the projects are operational. This is simply because diamonds can be found in the gravel close to the surface, or in streams - what is geologically known as alluvial diamonds.
These can be easily separated from the host rock, in this case gravel, through panning. As a result, small-scale mining is possible. It is, however, different and it will be difficult for small-scale miners to mine kimberlite pipes that extend vertically hundreds of metres into the ground. This needs heavy equipment and is very expensive. To sink a shaft, in my days when I was mining, it cost R5 million. I wonder what it would cost today.
It will also be difficult to embark on small-scale mining in gold, platinum, iron ore and any other mineral, which need heavy machinery and equipment to mine and separate from the host rock, unless such projects are adequately financed. We are therefore looking forward to the mineral promotion and policy programme coming up with policies that will better address the need that "The people shall share in the country's wealth."
Australia has taken a deliberate decision to impose a 40% tax on mines from 2012 onwards. It intends to spread the wealth of the country in that manner. I am not saying we should follow suit, but what we should keep in mind is that the mineral resources in the ground are not replaceable. And, if we continue giving away this wealth without our country being developed using our country's natural endowments, we are definitely going to end up at the IMF's and World Bank's door with a begging bowl. I thank you. [Applause.]
///tmf///END OF TAKE
Mr K A SINCLAIR
Mr B A MNGUNI
Mr K A SINCLAIR: Hon Chairperson, mining has been the mainstay of South Africa's economy for centuries. There are, however, serious challenges that need focused attention, for instance resource depletion, the ballooning costs of mining, the high cost and uncertainty of power supply, technological challenges, the threat of nationalisation, and undue political interference.
The reassurance by the Minister on behalf of government on the subject of nationalisation will have calmed the nerves, but it has left a lingering doubt. As mining in our country is no longer done at the surface, mining costs are rising steeply. In the last year, over 30% of miners lost their jobs. Maybe the ANC Youth League should be encouraged to study the economics of present-day mining. We know that the president of the ANC Youth League is not very strong in mathematics. [Interjections.]
In 2004, government approved the Mineral and Petroleum Resources Development Act. Its objectives were to provide for equitable access to mineral resources, promote economic growth, achieve mineral resource development, and provide for security of tenure in respect of prospecting, exploration, mining, and production operations.
Hon Minister, some of these objectives are not being met owing to administrative indiscretion, political gerrymandering and uncertainty in the regulatory framework. A typical example is the fiasco involving Kumba Iron Ore, ArcelorMittal and the reapplication for the mining licence. The net result is that a few privileged, politically connected individuals apparently stand to gain R8 billion without lifting a finger.
A lot has been said about unrehabilitated mines, and I think the best example is Kimberley, where, indeed, it was proven that diamonds are not forever. We need to address the issue of mining companies which place this critical rehabilitation phase last on their "To do" lists.
Cope would like to congratulate Migdett - the Mining Industry Growth, Development and Employment Task Team - on managing to save almost 65 000 jobs instead of the expected job loss of 100 000 during the financial crisis. The Minister has already indicated what they intend doing.
Beneficiation remains the nemesis of the South African mining industry. It is unacceptable that the same hollow arguments are continually raised as to why mineral resources cannot be beneficiated close to the source of production. Government must think outside the box and seriously consider initiatives like smelters for the Northern Cape and the relocation of the State Diamond Trader back to Kimberley where it belongs.
Further, it is an indictment of government that single-sex hostels are still in existence. According to some reports, 36% of mineworkers still live in these circumstances. Although the figure has come down, it begs the question: Why is it taking so long to do away with this practice?
It would also be appreciated if the hon Minister could pronounce herself on the situation at the Aurora Grootvlei mining operation where three miners died whilst waiting in a queue to receive their hard-earned wages.
Lastly, Cope wants to endorse the summoning of the Mine Health and Safety Council to appear before the committee. There are many questions regarding mining health and safety that still remain unanswered, and it is important to ensure that the Mine Health and Safety Council does, in fact, enforce compliance. At present, only 2% of the budget is allocated to the promotion of health and safety. This is certainly not enough and we need to look at that. I thank you, hon Chairperson. [Applause.]
Mr J J GUNDA
Mr K A SINCLAIR
Mr J J GUNDA: Hon Chair, hon Minister and hon members in this House, a recent report found that South Africa is the richest country in the world in terms of non-energy mineral wealth. The wealth underneath our land is estimated to be in excess of US$2,5 trillion, almost double that of the next wealthiest country, Russia, which has US$1,6 trillion of reserves.
This begs the question: Why is it that in a country that has huge potential to use its mineral wealth to improve the lives of its people, more than half of our population continues to live in poverty? And why is it that in spite of the fact that the struggle for political and economic freedom was victorious, we are the most unequal society in the world? One cannot help but wonder what happened to that part of the ruling party's Freedom Charter that refers to the people of our nation sharing in our mineral wealth.
Hon Chair, not much has changed. Allow me to say this: the government can do all the spin it wants about how it cares for the poor and marginalised, but nowhere else is its complete disregard for the people it claims to represent clearer than in the arena of minerals. The government and its successive governments have betrayed the mineworkers that have worked the ground over the past centuries, and the past 16 years. Just as bad is that they have betrayed the memory of the tens of thousands of mineworkers that gave their adult lives to doing the same thing under colonialism and apartheid.
The ID is deeply saddened to see how the government is allowing a small cabal of people to benefit from the wealth of our country, while the majority have to suffer lives of indignity. We should also be asking questions about the fact that South Africa has 80% of the world's manganese reserves, yet we only account for 15% of current global production. The mineral wealth in this country is being offered to foreigners, South Africa's manganese rights having been sold to a consortium which includes a Russian oligarch.
Afrikaans:
Die minerale in die Noord-Kaap is nie regtig tot voordeel van die mense van die Noord-Kaap nie. Hulle is maar net gewone werkers en glad nie aandeelhouers nie. Ystererts word uitgevoer. Hoekom kan ons nie ons eie staal in die Noord-Kaap produseer om werk te kan skep nie? Hoekom het ons nie 'n breë, holistiese benadering om sodoende ons mense se lewens te kan verbeter? Ons sê ons wil oorlog voer teen armoede, maar ons gee net mense werk. Jy gaan nie iemand se armoede verlig as jy net werk gee nie. Jy moet hom 'n aandeelhouer maak, want ons mense lewe op daardie grond, en ons gee ons rykdom vir buitelanders. Wat van ons eie mense? Hoekom ontwikkel ons nie ons eie mense nie?
English:
Chairperson, let me just conclude with this: the ID therefore calls on the Minister to urgently hold a joint summit with the Department of Water and Environmental Affairs so that we can find some synergy in resolving the growing environmental issues coming from the mines. The ID supports this budget. I thank you.
/Robyn/
END OF TAKE
Mr D D GAMEDE
Mr J J GUNDA
Mr D D GAMEDE: Chairperson of the NCOP, firstly, the ANC supports this Budget Vote. Secondly, we as a committee and as the ANC are very happy and satisfied that the finances of the department are healthy.
After more than a century of mining activities in South Africa, the country remains one of the most geological and mineral-rich regions in the world. South Africa's mineral industry, largely supported by gold, diamonds, coal and platinum group metals, has made an important contribution to the national economy.
Mining continues to be South Africa's principal earner of foreign exchange. It has been said that it contributes about 7% of the GDP. Mining also contributes approximately R140 billion to South Africa's exports, and it directly accounts for 6,5% of total fixed investment.
However, one other issue is the lack of skilled historically disadvantaged South Africans, HDSAs, which should not be used as an excuse by the mining companies for failure to meet the employment equity targets. That also includes the 2% of employment of people with disabilities.
The department conceded that it has been busy with conversions of old-order mining licences, and that it could not do inspections at the same time, which we accepted. However, the department must ensure that it has an adequate human resource capacity to do the inspections in 2010-11.
The department performed well in weathering the storm of the global economic crisis. The Mining Industry Growth, Development and Employment Task Team, Migdett, minimised some job loses.
The commitments of the charter are not intended for compliance purposes only. They do not end in 2014, but are meant to transform the industry.
There are also the issues regarding mining, the environment and communities – three major issues. A balance must be found among these. There are issues that have been raised by communities, for instance in KwaMbonambi, KwaZulu-Natal, about Richards Bay Minerals; in Madlankala about Exxaro; and in Burgersfort in Limpopo, in the Sekhukhune District. Those issues need to be attended to.
Patrick Bond in Looting Africa: The Economics of Exploitation, says:
Given that mining houses have been central to looting Africa for at least a century and half, it is fitting next to consider the damage done by depletion of minerals and other non-renewable natural resources. The central question is whether any of the financial capital that returns to Africa by way of royalties on minerals or profits to local shareholders is reinvested or merely becomes the source of further capital flight.
The glittering history of the sector is well recorded. I do not want to dwell on that. Today, I would like to hone in on one of the themes in the Minister's budget speech, and this is the issue of the proposed state-owned mining company which would consolidate the mining interests of the state in one vehicle.
Those that have fallen behind with following global trends will certainly oppose this in the most fervent manner. A former public policy analyst of the Chamber of Mines, by the name of Ricardo Hansby, recently pointed out in an article in The Times that: It is now broadly accepted that more meaningful state involvement in economies is inevitable and in fact desirable. Now that the state wants to restore the glitter of the mining industry, it is opposed by a number of industry and political leaders. In the spirit of collaboration, we need to call on the mining companies and their respective bodies to stop lamenting what the government is doing and not doing. We need them to be proactive and suggest solutions. In their own language, this is what they call value added.
The proposed state-owned mining company is one initiative, and the doors of the government and the Ministry are wide open to suggest alternatives. When the industry was asked on numerous occasions to come up with solutions to the low beneficiation rate of mineral products that takes place in South Africa, all we heard were excuses cloaked in technical jargon. These are exactly the reasons why the state will explore its own options.
In short, we as the ANC believe that this budget will help in addressing the backlogs and the issues that are faced by miners, more especially the aftereffects – the health issues that take place when miners have long left the mines.
We, as the ANC, support this Budget Vote with a big smile. I thank you. [Applause.]
/Mosa/
NB
END OF TAKE
The MINISTER OF MINERAL RESOURCES
Mr D D GAMEDE
The MINISTER OF MINERAL RESOURCES: Thank you, Chairperson. "Malibongwe elamadoda!" I would like to take this opportunity to thank members of the select committee for their positive input. Thank you very much, chairperson, for the continual support leadership you have shown not just in this House but also in the committee. My officials appreciate your leadership in helping us tosteer this ship in a positive way. Thanks go to all the hon members and to hon Eliza.
I must indicate that matters raised by members, matters of transformation will remain at the centre of the department because a lot still need to be done. Regarding beneficiation, we cannot continue to behave as we have in the past. We have to deal with it.
Hon Gunda, it is a thing of the past when people said no to beneficiation in our country. We have taken a policy decision and we are going to beneficiate. It is not an individual choice, but a government's policy and a willingness and commitment by this government to beneficiate.
With regard to the point raised on the State Diamond Trader, may I indicate that whilst we have a history of Kimberley being the main producer of diamonds, South Africa is a unitary state and how we locate any asset in our country becomes very important - it must be strategic and accessible.
The trader, which is in Johannesburg, is not by default. We are revisiting that, but, definitely, the issue of moving to the Northern Cape does not make us competitive. South African diamonds attract global interest. So we have to be located in a way that the interest globally can make our diamonds accessible. This also means that we must be able to create a hub: where having transport means that when those people come to buy, they can easily access the hub. That is very important for us. But, if you are going to look at this in terms of me and you, then it does not recognise that we are a single country.
We must bear in mind that South Africa has no federal states; we are a unitary state. We have to make sure that whatever happens in Kimberley benefits the rest of the communities of South Africa. I must also indicate that Gauteng and Limpopo have diamonds. Therefore, we get diamonds all over, not only in Kimberley. What we have to move away from is the distortion created by De Beers in the past.
I agree and acknowledge that whatever happened in the past must not happen in the future. Kimberley must not be disadvantaged because it only has diamonds. It has to benefit from what is in South Africa holistically like any other community. Therefore, diamonds and all other minerals of this country must benefit the rest of South Africa. The distortion can't go on and must be corrected. We cannot create jobs in Johannesburg alone. We have to create jobs in the rest of South Africa – we have to create sustainable jobs all over.
Hon Eliza, we will indeed look at the issue of Alexkor, because it is course for concern.
Within this context, I also want to raise the issue, broadly, of small-scale mining. When we deal with issues of small-scale mining, we must also say what legacy it leaves for the country. We can't just allow small-scale mining to continue differently. There are major implications, and there is a price to pay on issues of the environment. So, we can't ignore those issues, Mr Mnguni, as if they don't exist. They are there. Even with small-scale mining, we can't erode and degrade the environment. We have to act responsibly - all of us, big or small. These are the challenges we have to engage with. We have to ask ourselves how best can we make sure that the future for our children is right; that they are able to inherit a country that is still user-friendly. This applies to all of us. I think we know that the issues of rehabilitation are cause for concern.
I must also indicate that we are going to have a strategy on rehabilitation. One of the issues we are going to relook at is our current system in terms of people contributing towards the rehabilitation fund. Is it sustainable? Can it ensure that after mining the land can be reutilised in a way that makes it good? We are going to revisit that because, in my own view and in my own observation, it is not enough.
Currently, as members know, the challenge we have is the derelict and ownerless mines have left us with a cost of about R50 billion. Where will it come from? Is this not the money which is supposed to improve the lives of ordinary people and poor people? This is because when we pay tax, our tax is supposed to pay for ownerless and derelict mines because that is a current challenge.
I must also indicate that our system currently will continue to create derelict mines, unless we become vigorous in ensuring that in the future, as the policy says, the polluter pays - that "the polluter pays" is not just a slogan. So, we have to translate that into something concrete.
Transformation is indeed not good, but I also want to indicate that, as we deal with these issues, we must also bear in mind that these are not easy matters. We ourselves, those who are trying to empower, also tend to create problems because we want to provide ourselves as fronting people without really making sure that transformation becomes a reality. So, those are the real challenges we are facing. We have to address them.
In my own view, transformation of the mining industry will lie in the core of people being operational. Therefore, this means we need to encourage more people, especially young people, to go to school so that they can get the requisite skills, join the mining industry and become future owners, because equity cannot just be hanging. People are hanging on mining companies, and hence it creates a lot of fronting.
Therefore, we have to correct that as part of the transformation process if we want to ensure that in 25 years' time it is different from today. We must make sure that transformation is real and not fronting: where people come in but can be kicked out tomorrow, while other people are being rented to the industry.
The charter, indeed, for me, is a living document. It is an instrument and a tool that we will always use to measure our success. But the biggest challenge we have is that we are far from the reality. There are many issues that we have to deal with in order to ensure that matters of fronting and transformation are real and concrete in South Africa.
Hon member, there is no political interference. I don't know what political interference you are talking about. We have laws in this country. I think that what we have to do is separate issues: for instance, my child happening to apply or wanting to be involved in a particular business being seen as political interference. I want to know what law in this country says that the children of the leaders of political parties, including yours, hon Eliza, cannot become involved in business. I want to know which policy that is. Or, if that is what we want, why don't we put it into law? Also, are we not discriminating? Are we saying they are different from other South Africans and must not have rights, and that as soon as I become a Minister my kids forfeit their rights as equal citizens of this country? These are issues that we must address, because we politicise issues in the wrong way. That is why I am asking which law that says they can't in South Africa?
I am a regulator. When I consider an application, I don't check whose child it is and who it is related to. What guides me is the law. I don't even look at the company or who owns the company. I look at whether the company is compliant and at whether the procedures are followed. On that basis we issue a licence; not on the basis of who is behind the application. That's not my responsibility. There is no law which says that I must scrutinise individuals. You as Members of Parliament, you as the legislators, you are responsible for oversight through the ethics committee to say, "If my children are involved in business, have I declared?" That is your responsibility; not my responsibility as the regulator. [Applause.] That is not my responsibility.
I want to plead with this House: let's not mislead the world by saying there are some who are better than others. That's not true. We have laws and if, indeed, there is a violation of the law, let's point out where there is that violation. Let us not generalise, because there is no law that says the children of leaders, including your children as Members of Parliament, cannot become involved in business. There is no law that says that. So let's separate issues for us to be able to take these matters forward.
With regard to the issue of Aurora, there are challenges with Aurora, but as the regulator we don't have authority over Aurora. Unfortunately, we don't have a relationship with Aurora. They are not the licence holder. With any of these companies and the stories we read about, the licence holder during liquidation is the liquidator. So, our focus, as Members of Parliament, should be on the liquidator. We don't have a relationship with the liquidator. They are a management company. If you look at the licence or at the permit, the right person is the liquidator.
I must also say that we have a problem with the liquidator. He is causing many problems, not Aurora. Let us not follow what the papers say, because as you play an oversight role you are missing the real target, the real people who are causing problems and nightmares for the workers is the liquidator, not Aurora. We don't have a relationship with Aurora. We must know the law. We must understand that the law says that the licence holder is the one we have a relationship with.
With regard to health and safety matters, indeed, I agree with members that we have to make sure that there is zero tolerance. We will increase our oversight and our inspectorate when it comes to matters of fatalities. We are not happy. I agree with you. We are not happy and we can't be happy, as long as people continue getting hurt in the mining industry.
Hon members, thank you very much for the support. I am happy that NCOP members understand that illegal mining is not our competence. Illegal mining is criminal. It is killing our country, hence we referred the matter to the justice, crime prevention and security cluster, because we felt that it is something beyond us, and we can't continue to entertain what is really eating away at our economy. Thank you very much, Chairperson, for this opportunity. I thank the members for their support.
Hon members, anyone who has an issue is welcome to discuss it with us. I am open to this. Let's find time to deal with the issues which are of concern to all of us. This is not about the opposition or the ANC. These are matters concerning the country. We have to make sure that working together we correct all the negative implications for the mining industry.
In terms of the Freedom Charter, indeed, the mineral wealth beneath the soil belongs to the people of South Africa as a whole. They have to benefit - all of them. I agree that nationalisation will not help us, and this will not take us in that direction, but we have to find innovative ways of having our people benefit from the mineral wealth of this country. Thank you. [Applause.]
Debate concluded.
VM/
END OF TAKE
Mr D D GAMEDE
The MINISTER OF MINERAL RESOURCES
AGREEMENT BETWEEN EUROPEAN COMMUNITY AND MEMBER STATES, OF ONE PART, AND GOVERNMENT OF RSA, OF OTHER PART, AMENDING AGREEMENT ON TRADE, DEVELOPMENT AND CO-OPERATION (TDCA)
(Consideration of Report of Select Committee on Trade and International Relations)
Mr D D GAMEDE: Hon Chairperson, hon members, the Trade Development and Co-operation Agreement, or TDCA, was signed in 1999. It was the first bilateral framework agreement entered into by both the democratic South Africa and the European Union, the EU. While awaiting ratification, it was partially implemented in January 2000, and was fully implemented in May 2004 following the final ratification.
The TDCA includes chapters on political dialogue, trade, economic co-operation, development co-operation and co-operation in other areas. Trade liberalisation is asymmetrical in nature. South Africa is to eliminate tariffs on 86% of imports from EU imports over a 12-year period, whilst the EU is to eliminate tariffs on 95% of imports from South Africa over a 10-year period.
The 2004 mid-term review, mandated in terms of article 103 of the TDCA, led to the realisation that an update was needed. Formal revision negotiations were launched on 27 March 2007, led by the Department of International Relations and Co-operation.
Negotiations included all relevant South African departments and were conducted by three thematic negotiation groups, namely the political dialogue negotiation group, the economic and other areas of co-operation working group, and the development co-operation negotiation group.
Thirty-five new and revised articles were articles were initiated by chief negotiators on 10 October 2007, while a process of revision of trade chapters is being conducted separately under the Southern African Development Community Economic Partnership Agreement negotiations process. An amending agreement was signed by hon Minister Nkoana-Mashabane during the second South Africa-European Union summit on 11 September 2009.
The TDCA has proved to be very beneficial to South Africa in terms of trade. It has helped to facilitate a 234% trade increase between 2000 and 2004 and a 170% trade increase from 2004 to 2007.
South Africa's inclusion of a reference to disarmament in the agreement is an important point-of-principle victory, as it is the first time that the EU has been forced into not only focusing on including the nonproliferation aspect as an essential element in the framework agreement, but also adding the disarmament issue.
Article 2 has been reworded to include the following essential elements of the agreement, namely the respect for democratic principles and fundamental human right as laid down in the Universal Declaration of Human Rights, and co-operation on issues of disarmament and the nonproliferation of weapons of mass destruction. As essential elements, this means that any violation of these principles could result in the termination of the agreement.
Article 57 was amended to place more focus on energy security, the promotion of cleaner energy technologies, and regulatory co-operation. Article 58 has been amended to allow support for policies and programmes that promote the local beneficiation of minerals and that create opportunities for collaboration in the development of the mineral beneficiation sector, as we discussed in the previous debate.
In the new article 65A the parties elaborate on their joint commitment to meeting the Millennium Development Goals.
Article 86, which is on social issues, now allows for a broader dialogue in the areas of employment and social policy, which will include questions relating to social problems of post-apartheid society, poverty alleviation, decent work for all, social protection, unemployment, gender equality, violence against women, children's rights, persons with disabilities, older persons, youth, labour relations, public health, safety at work, and population.
Article 90, on the fight against drugs and money-laundering, has been substantially altered and re-titled as "Co-operation on Illicit Drugs", allowing for co-operation to ensure a balanced and integrated approach towards addressing the drugs problem and reducing the supply of trafficking in, and the demand for, illicit drugs.
The new article 91C on money-laundering and terrorism financing commits the parties to making every effort and to co-operating in order to prevent the use of their financial systems for laundering the proceeds from criminal activities and from offences related to illicit drugs and psychotropic substances.
Following ratification, the inclusion of the reference to disarmament could be used as a precedent going forward when dealing with the EU on linkages between nonproliferation and disarmament. Nonratification by South Africa of the TDCA revision agreement would send a negative signal to a key strategic partner. I therefore urge this House to support this ratification. I thank you.
Debate concluded.
Question put: That the Report be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution
END OF TAKE/GC
Mr M H MOKGOBI
Mr D D GAMEDE
OVERSIGHT VISIT TO TSWAING LOCAL MUNICIPALITY
(Consideration of Report of Select Committee on Co-operative Governance and Traditional Affairs)
OVERSIGHT VISIT TO MADIBENG LOCAL MUNICIPALITY
(Consideration of Report of Select Committee on Co-operative Governance and Traditional Affairs)
OVERSIGHT VISIT TO NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
(Consideration of Report of Select Committee on Co-operative Governance and Traditional Affairs)
OVERSIGHT VISIT TO MASILONYANA LOCAL MUNICIPALITY
(Consideration of Report of Select Committee on Co-operative Governance and Traditional Affairs)
The HOUSE CHAIRPERSON (Mr R J Tau): I now call upon the chairperson of the Select Committee on Co-operative Governance and Traditional Affairs, the hon Mokgobi.
Mr M H MOKGOBI: Hon Chair and honourable House, in the Tswaing Local Municipality, the committee right from the beginning was met with a state of chaos. You could not separate the municipality from a liquor restaurant. There was a general lack of discipline. Officials were not at work, while those that were wore caps covering their eyes.
Other general observations by the committee and the report from the administrator concerned water, sanitation, roads, local economic development strategies, organograms, supply-chain management - everything was in disarray. What was most unique about this municipality was its grading system. The municipality was supposed to be at Grade 3 or Grade 4, but, in terms of a resolution of the council, the municipality was placed at Grade 6. The implication of this was that councillors and officials were earning amounts equal to a Grade 6 municipality - which is just next to that of a metro.
Other issues such as budgets, integrated development plans, institutional development, and governance were also in a poor state. In terms of the organogram, the report says there were 120 general workers who were promoted to senior management posts. What does this imply? You can get an answer by doing your own personal analysis. There were 19 section-57 managers – the biggest, I'm sure, in the country and bigger than some of the provinces in terms of a department.
The question is: What are they doing in terms of the five-year strategic agenda of local government? Where are they placed? The other recommendation that we would like to make here is to request the Select Committee on Finance and Appropriations to spend a day or two with that municipality to work on finances. This is important to make sure that the organogram is reviewed and goes back to normality - financially, legally and politically.
The other worrying factor is that it is alleged in the report that this municipality has one gardener and one cleaner. You can see this in its appearance. Therefore, it is important that serious attention be given to this municipality.
The committee, therefore, recommends that section 139(1)(b) of the Constitution be applied. If there are still no improvements, then we will do a review – the administrator should concentrate on making sure that there is a database on every worker and their qualifications.
The TEMPORARY CHAIRPERSON (Mr S S Mazosiwe): Order, hon member Mokgobi! You have covered one municipality so far, and you are supposed to deal with all four of them in 10 minutes. Now, you have spoken for five minutes, and I'm just making you aware that you have five minutes left.
Mr M H MOKGOBI: As long as your awareness does not take up my time.
The TEMPORARY CHAIRPERSON (Mr S S Mazosiwe): No, it won't. [Laughter.]
Mr D V BLOEM: Chairperson, I plead that you give the hon chairperson 50 minutes to complete the report. [Interjections.] This is very important because it is serious. It's very serious. The North West is in chaos.
The TEMPORARY CHAIRPERSON (Mr S S Mazosiwe): Order, hon members! Thank you, hon Bloem. Continue, hon Mokgobi.
Mr M H MOKGOBI: Thank you very much for the House approving ... [Laughter.] ... that the administrator fast-track the database and that the Hawks be in place. The administrator is to stabilise the local labour forum. Quarterly reports should be in place. The SA Local Government Association, Salga, must begin offensively to train councillors and officials. The Municipal Demarcation Board must come into play in terms of the grading system, and follow-ups must be made.
With regard to the Madibeng Municipality, it is a high-capacity municipality with huge economic potential but less revenue income. It is characterised by fraud, financial problems, poor management, and bad governance. At one stage a tender was approved for R5 million, but implementation came to R7 million. This is just to give you a brief idea of what is happening. There should be an investigation into the Oukasi Development Trust, which was changed into something that could not be defined, to see who is benefiting.
We therefore recommend approval on this matter and that the administrator fast-track the reviewing of the database of qualifications of all section-57 staff, stabilise the administration in terms of labour-relations unrest, that the Hawks be in place, and that quarterly reports be given.
With regard to the Masilonyana Municipality, here we would concur with councillors. They have made several attempts with the province for intervention, but it looks like the intervention came late as we are going into the elections for next year. There is also bad governance here, and a lack of adherence to financial systems in terms of which about R46 million cannot be accounted for. We are calling for the House to give the administrator a chance to ensure that there is planning, budgets, institutional development and good governance.
We, therefore, recommend the approval of section 139(1)(b) in that the administrator should make sure that there is skills training for all involved; that there is functionality of the local labour forum; and that Salga come into play.
With regard to the Ngaka Modiri Molema District Municipality, we reported on this municipality last year. I don't believe we need to go into the background. All that we request of the House is an extension precisely because there are outstanding issues. Amongst these issues is making sure that a municipal manager is in place, that other section-57 managers are appointed, and that there is further improvement in the current administrative situation.
We therefore recommend that the extension be approved by this House. This is the extension in terms of section 139(1)(b). As a committee, we want to urge, through you, Chairperson, that the committee speedily be given a second researcher as the committee is working on its own. We don't have a researcher in this regard. Thank you. [Applause.]
Debate concluded.
Question put: That the Reports be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Reports accordingly adopted in accordance with section 65 of the Constitution.
The Council adjourned at 11:35.
MS
END OF TAKE
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