Hansard: Appropriation Bill: Vote No 18 – Labour and Vote No 7 – Public Works:

House: National Council of Provinces

Date of Meeting: 23 May 2013

Summary

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Minutes

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 191

"National Council of Provinces Main",Unrevised Hansard,06 Jun 2013,"Take 191 [National Council of Provinces Main].doc"

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THURSDAY, 23 MAY 2013

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

___________________

The Council met at 14:02.

The Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.

NOTICES OF MOTION

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START OF DAY

NOTICES OF MOTION

Mr D D GAMEDE: Chair, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the ANC:

That the Council-

(1) notes and congratulates -

(a) the people of Zimbabwe on the signing into law, their new constitution yesterday, 22 May 2013;

(b) the signing of the constitution is a culmination of a process that started when people committed themselves and participated in a free and fair referendum earlier this year; and

(c) the constitution that was subsequently passed unanimously by the parliament of Zimbabwe;

(2) acknowledges that the new constitution marks a significant milestone in the successful implementation of global peace agreement and the democratic life of Zimbabwe;

(3) commends the role played by the SA Development Community through its facilitators former President Mbeki, President Jacob Zuma and all other role-players who worked tirelessly to ensure this outcome.

Agreed to.

Mr D A WORTH

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 191

Mr D D GAMEDE

Mr D A WORTH: Chairperson, I hereby wish to give notice that on the next sitting day of the Council I shall move on behalf of the DA:

That the Council-

(1) notes that the MEC for Local Government and Housing in Gauteng, Mr Mentombi Mekgwe, has confirmed that the province is experiencing heavy water losses mainly due to ageing infrastructure;

(2) also notes that the water losses were up from 35,9% in 2010-2011. The City of Joburg lost 206 million kilolitres, Ekurhuleni 133 million kilolitres and Tshwane 77 million kilolitres of water;

(3) further notes that a total of 480 980 000 kilolitres of water, the equivalent of 2,5 Hartbeespoort Dam or 192 392 Olympic size swimming pools were lost;

(4) also acknowledges that water is a scarce resource in South Africa and with the crisis in acid mine drainage in Gauteng, is becoming even more limited and expensive to clean; and

(5) Gauteng is already using 98% of its allocated water and relies on Lesotho for most of the water in the Vaal Dam.

Ms E C VAN LINGEN

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 191

Mr D A WORTH

Ms E C VAN LINGEN: Hon Chairperson, I hereby wish to give notice that on the next sitting day of the Council I shall move on behalf of the DA:

That the Council-

(1) notes that the residents of Pudiyakgopa in Mogalakwena Municipality are walking long distances and struggling to access work and services because of a promised road that has not been built for the past five years;

(2) also notes that the Roads Agency Limpopo has promised the residents that it would tar the gravel road joining the N1 in 2008 but nothing has been done till to date;

(3) further notes that the 18km road from Harry Oppenheimer to Pudiyakgopa was approved by the agency and they appointed engineering consulting services; and

(4) calls on the Minister of Transport and the department to address this as a matter of urgency in an effort to open up the road for this community to all opportunities of social structures to which they are entitled.

Mr C J DE BEER /Arnold / GC / END OF TAKE

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Thursday, 23 May 2013 Take: 192

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NOTICES OF MOTION

ANC VICTORY IN BY-ELECTIONS

(Draft Resolution)

Mr C J DE BEER: Chairperson, I move without notice:

That the Council -

(1) notes that the ANC won three of the by-elections that were held yesterday, 22 May 2013, in Impendle in KwaZulu-Natal, Sabie in Mpumalanga and Concordia in the Northern Cape;

(2) further notes that by winning the Concordia by-election, the ANC took over at Nama Khoi Municipality at 21:00 last night and crushed the DA coalition;

(3) acknowledges that this decisive victory is a clear indication of the trust in and a clear mandate to the ANC to continue with its agenda to give our people a better quality of live; and

(4) takes this opportunity to wish the elected representatives well.

CHAIRPERSON OF THE NCOP: In the light of the objection, the motion may not be preceded with. The motion without notice will now become a notice of a motion

Mr K A SINCLAIR

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mr C J DE BEER

NEGATIVE IMPACT CAUSED BY UNION ACTIONS ON INVESTOR CONFIDENCE (Draft Resolution)

Mr K A SINCLAIR: Chairperson, I move without notice:

That the Council -

(1) debates the negative impact caused by union actions on investor confidence;

(2) explores ideas and ascertains the dearth of bold leadership required in reducing further tensions in the industry that trigger conflict, negativity and the wide gulf that separates the parties; and

(3) facilitates debates that will focus on the key causes of the gap between the pay and conditions of union officials and union members which have become a route into the middle class aristocracy at the expense of the factory, field and mineworker.

Motion agreed to in accordance with section 65 of the Constitution.

Ms M G BOROTO

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mr K A SINCLAIR

PASSING AWAY OF NOMAWETHU IVY MDUTSHANE

(Draft Resolution)

Ms M G BOROTO: Chairperson, I move without notice:

That the Council –

(1) notes with utmost shock and sadness of the death of Nomawethu Ivy Mdutshane who was the sister of hon M W Magadla;

(2) further notes that Ms Mdutshane passed away last Wednesday, 15 May, and will be laid to rest in Lusikisiki in the Eastern Cape next week on Sunday 1 June; and

(3) takes this opportunity to convey its heartfelt condolences to Ms Magadla and the Mdutshane family for their loss and wishes them strength during these difficult times.

Motion agreed to in accordance with section 65 of the Constitution.

Mrs L MABIJA

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Ms M G BOROTO

GANG INVASION AT SCHOOL IN KHAYELITSHA

(Draft resolution)

Mrs L MABIJA: Chairperson, I move without notice:

That the Council –

(1) notes with shock and disgust the reports of an invasion of a school by knife-wielding gangs in Khayelitsha, Cape Town on Wednesday morning;

(2) further notes that a gang war between the pupils in Khayelitsha was spilling into school grounds of Bulumko Secondary School in Khayelitsha after a group of former pupils carrying knives jumped the fence and threatened the school children and staff;

(3) takes this opportunity to condemn in the strongest possible terms the disturbance of learners by gangs; and

(4) calls upon the Western Cape Education Department to do everything in their power to guarantee the safety of learners and educators in gang-infested schools.

Motion agreed to in accordance with section 65 of the Constitution.

Mr V M MANZINI

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mrs L MABIJA

PROVINCIAL GOVERNMENT RECEIVES DONATION FOR MULTIPURPOSE COMMUNITY SERVICES CENTRE

(Draft Resolution)

Mr V M MANZINI: Chair, I move without notice:

That the Council –

(1) notes that travelling long distances to access essential government services in Nelspruit will be a thing of the past for the residents of Mashishing, formely Lydenburg, after the provincial government received a donation for a multipurpose community services centre from a private company, Lydenburg Smelter;

(2) further notes that the Mashishing Thusong Centre will accommodate the government departments and agencies that provide an essential civic services;

(3) also notes that these include services rendered by the Departments of Home Affairs, Agriculture, the SA Social Security Agency, municipal offices and the small enterprises development agency, Seda;

(4) further notes that the centre donation, which was handed over to the provincial government over the weekend, is valued at about R9 million; and

(5) acknowledges that the Mashishing Thusong Service Centre brings essential government services closer to the local residents who previously had to commute 100 km to Nelspruit.

Motion agreed to in accordance with section 65 of the Constitution.

Mr M P SIBANDE

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mr V M MANZINI

CYCLISTS INJURED OR KILLED BY MOTORISTS ON OUR ROADS

(Draft Resolution)

Mr M P SIBANDE: Chair, I move without notice:

That the Council –

(1) notes reports of the arrest of a driver who killed Cape Town cyclist, Dr Koos Roux, in a hit-and-run on Bottelary Road in Brackenfell, Cape Town more than a week ago, on 12 May 2013;

(2) further notes that an East London cyclist, Mr Rob Burton, died this past Tuesday after being hit by a cement truck on the N6 near Ducats township outside Beacon Bay;

(3) condemns in the strongest possible terms the tendency of motorists to not respect cyclists on the roads; and

(4) calls on government to investigate ways of strengthening cyclists on our roads and for harsher sentences to people who show utter contempt for the rights and lives of cyclists who cycle in order to support themselves and their families.

Motion agreed to in accordance with section 65 of the Constitution.

Mr M H MOKGOBI

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mr M P SIBANDE

ARREST OF FIVE MOST WANTED SUSPECTS IN KWAZULU-NATAL

(Draft Resolution)

Mr M H MOKGOBI: Chair, I move without notice:

That the Council –

(1) notes the arrest of five most wanted suspects aged between 28 and 83 who have been terrorising the community of KwaZulu-Natal;

(2) further notes that the five most wanted criminals were wanted for crimes such as murder and attempted murder, hijacking, and business and house robbery;

(3) also notes that they were on the run for three months and were found hiding in Nsuze, and

(4) takes this opportunity to commend the police in KwaZulu-Natal and its crime intelligence unit for bringing these ruthless criminals to face the full might of the law.

Motion agreed to in accordance with section 65 of the Constitution.

Mr M C MAINE

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mr M H MOKGOBI

CALL TO STOP RHINO POACHING

(Draft Resolution)

Mr M C MAINE: Chair, I move without notice:

That the Council –

(1) notes the call made by the Zulu King, His Majesty King Goodwill Zwelithini, to those who are behind the rhino killings to stop;

(2) further notes the reports that 11 rhinos have been killed in the province of KwaZulu-Natal in the past week and that since February 128 rhinos have been killed in South Africa this year; and

(3) takes this opportunity to express its support for the call to wage a concerted fight against rhino poaching in South Africa.

Motion agreed to in accordance with section 65 of the Constitution.

Ms E C VAN LINGEN

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mr M C MAINE

SA INSTITUTE FOR BIODIVERSITY COMPETING AT CHELSEA FLOWER SHOW

(Draft Resolution)

Ms E C VAN LINGEN: Chair, I move without notice:

That the Council –

(1) notes that this year Kirstenbosch Botanical Gardens and the SA Institute for Biodiversity again competed at the Chelsea Flower Show;

(2) further notes that this year is the 100th year of existence of the Chelsea Flower Show as well as the centenary year of the Kirstenbosch Botanical Gardens;

(3) further notes that the South African exhibition was awarded their thirty-third gold medal at the show, maintaining a high standard with true South African pride;

(4) congratulates the:

(a) Kirstenbosch Botanical Gardens and the SA Institute for Biodiversity on their 33rd gold medal awarded at the Chelsea Flower Show;

(b) Kirstenbosch Botanical Gardens on their centenary celebrations and thanking them, together with the SA Institute for Biodiversity, for nurturing a landmark of our natural heritage resources; and

(c) Chelsea Flower Show on its 100 years of glory and for contributing to the awareness and importance of the fauna of our world.

Motion agreed to in accordance with section 65 of the Constitution.

Mr T L MAKUNYANE

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Ms E C VAN LINGEN

GREEN BAR-CODED IDENTITY BOOKS TO BE REPLACED BY IDENTITY SMART CARDS

(Draft Resolution)

Mr T L MAKUNYANE: Chair, I move without notice:

That the Council –

(1) notes the statement by Minister of Home Affairs, Naledi Pandor, that green bar-coded identity books will be replaced by identity smart cards from July this year;

(2) further notes that, through a rigorous tender process, government printing works identified two world-class suppliers - Altech Card Solutions that will provide card personalisation machines and an automated mailing solution and Gemalto Southern Africa who supply pre-printed polycarbonate cards containing a contactless microchip;

(3) also notes that the smart card is part of a national effort to consolidate the restoration of common citizenship, identity and dignity to our people; and

(4) takes this opportunity to congratulate Minister Pandor for making sure that this project is finally being implemented.

Motion agreed to in accordance with section 65 of the Constitution.

Ms M P THEMBA

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Mr T L MAKUNYANE

DEATH OF INITIATES IN MPUMALANGA PROVINCE

(Draft Resolution)_

Ms M P THEMBA: Chair, I move without notice:

That the Council –

(1) notes the condolences conveyed by President Jacob Zuma to the families of the initiates who died in Mpumalanga last week;

(2) further notes that the President expressed his and the country's outrage at this massive and unnecessary loss of life at the hands of those who are supposed to nurture and protect them and called for an end to these unnecessary deaths; and

(3) takes this opportunity to express its support for the President's message and outrage about this tragic loss of human life and conveys its heartfelt condolences to the affected families.

Motion agreed to in accordance with section 65 of the Constitution.

Ms B P MABE

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 192

Ms M P THEMBA

NATIONAL CHILD PROTECTION WEEK

(Draft Resolution)

Ms B P MABE: Chair, I move without notice:

That the Council –

(1) notes that the week of 27 May to 2 June 2013 marks National Child Protection Week, CPW, which is a week commemorated annually to raise awareness of the rights of children as articulated in the Children's Act of 2005;

(2) further notes that the campaign began in 1997 to mobilise all sectors of society to ensure the care and protection of children;

(3) also notes that it was led by the Minister of Social Development; and

(4) takes this opportunity to acknowledge and support this year's campaign under the theme Working Together to Protect Children, which will be launched on 27 May 2013 at the Inkosi Albert Luthuli International Convention Centre in Durban, followed by the opening of an Orphans, Vulnerable Children and Youth Conference on the same day.

Motion agreed to in accordance with section 65 of the Constitution.

The CHIEF WHIP OF THE COUNCIL (Ms M G BOROTO on behalf of the Chief Whip of the Council)

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Ms B P MABE

GRANTING HON N D NTWANAMBI LEAVE OF ABSENCE FROM PROCEEDINGS IN TERMS OF RULE 17(2)

(Draft Resolution)

The CHIEF WHIP OF THE COUNCIL (Ms M G BOROTO on behalf of the Chief Whip of the Council): Chair, I move:

That the Council, notwithstanding the provisions of Rule 17(1) of the Rules of the National Council of Provinces, grants hon N D Ntwanambi leave of absence from proceedings of both the Council and committees of the Council in terms of Rule 17(2) until the hon member is ready to resume her duties.

Question put: That the motion be agreed to.

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

Motion agreed to in accordance with section 65 of the Constitution.

FIRST ORDER / NM / END OF TAKE

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NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 193

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The CHAIRPERSON OF THE NCOP

APPROPRIATION BILL

(Policy Debate)

Vote No 18 – Labour and Vote No 7 – Public Works:

The MINISTER OF LABOUR: Hon Chair, hon members, colleagues, compatriots and fellow South Africans, let me remind this House about the clarion call made by the real Congress of the People in 1955:

Peace and friendships amongst all our people shall be secured by upholding the equal rights, opportunities and status of all. South Africa shall strive to maintain world peace and the settlement of all disputes by negotiation – not war.

This Budget Vote takes place at a time when South Africa enters the critical moment of the collective bargaining season. It is also true that we have experienced greater turbulence in industrial relations in our young nation. These challenges in labour relations and collective bargaining in the year under review have also provided vital insight and lessons going forward, and will be noted in history as necessary painful steps in building our young nation.

Precisely, because mining has been and remains a key pillar of our economy, its troubles echo all over the country and affect many industries in its wake. So, it was when ructions occurred recently in the mining sector – especially in the platinum belt of the province of the North West. It left in its wake not only dead or maimed compatriots, but a changed collective bargaining framework and a considerable dent in the economy, the effects of which will be felt well into the future. Added to this, the strikes in the road freight sector and the protest action by farm workers in the Western Cape reminded us of just how important the responsible exercise of labour relations to the country and to the economy is.

In the light of the challenges in the collective bargaining front and attendant developments, the department will host a labour relations indaba. This is an event that will see stakeholders and role-players engaged in a conversation on the future of collective bargaining and social dialogue.

To achieve this, the Department of Labour is working closely with the National Economic Development and Labour Council, Nedlac, and the Commission for Conciliation Mediation and Arbitration, CCMA. Out of the pain of Marikana and other hot spots, a nation united in the view of how it wants to deal with its challenges of industrial relations will rise. The Minister will be engaging the leadership of the labour movement to discuss the adversarial nature of our industrial relations and to explore various ways to arrest the potential threat to our system of collective bargaining.

It is worth repeating that the Department of Labour is alive to its mandate of ensuring that there is decent work pursued under conditions of freedom, equity, security and human dignity – the ideals that drove our people to create a blueprint called the Freedom Charter.

Our mandate directs us:

To regulate the labour market through policies and programmes developed in consultation with social partners, which are aimed at improved economic efficiency and productivity; employment creation; sound labour relations; eliminating inequality and discrimination in the workplace; alleviating poverty in employment; enhancing occupational health and safety awareness and compliance in the workplace; as well as nurturing the culture of acceptance that workers' rights are human rights.

As members are well aware, there are bills before Parliament in which we seek to address all of the above. The amendments will see an enhanced regime of legal and social protection to deal with current realities in our labour market. This is in keeping with the promises made in the ANC election manifesto of 2009 which promised that:

In order to avoid exploitation of workers and ensure decent work for all workers as well as to protect the employment relationship, we will introduce laws to regulate contract work, subcontracting and outsourcing, address the problem of labour broking and prohibit certain abusive practices.

Provisions will be introduced to facilitate unionisation of workers and conclusion of sectoral collective agreements to cover vulnerable workers in these different legal relationships and ensure the right to permanent employment for affected workers.

These commitments have the genesis in the Freedom Charter which committed the state to ensure that:

All who work shall be free to form trade unions, to elect their officers and to make wage agreements with their employers; the state shall recognise the right and duty of all to work, and to draw full unemployment benefits; men and women of all races shall receive equal pay for equal work; there shall be a forty-hour working week, a national minimum wage, paid annual leave, and sick leave for all workers, and maternity leave on full pay for all working mothers; miners, domestic workers, farm workers and civil servants shall have the same rights as all others who work; child labour, compound labour, the tot system and contract labour shall be abolished.

Allow me to acknowledge in our presence one of the stalwarts that took part in that historic gathering in Kliptown in 1955 – Leon Levy who is in the gallery today and who continues in the effort of attaining a peaceful environment in labour relations as a senior CCMA Commissioner. Mr Levy, who in the 1950s and 60s served as the President of the SA Congress of Trade Unions, Sactu, the first nonracial trade union federation in South Africa which advocated for unionisation of workers across the colour bar under the theme, Organise or Starve, as well as promotion of One Union One Industry principle.

Let me also pay tribute to another stalwart – in her absence – who was also present at the real Congress of the People in Kliptown. Umama Emma Mashinini who was one of the founding members of the Garment Workers Union and later went on to be elected General Secretary of the Commercial Catering and Allied Workers Union of SA. Here in the hallowed corridors of this Parliament is hon Eric Mtshali, popularly known as Stalin, who also served with great integrity especially with SA Congress of Trade Unions, Sactu, and continues to inspire and lead.

It is stalwarts such as these that showed extraordinary courage and determination, thus contributing to the improvement of working conditions and the formation of strong trade unions for South African workers. The democratic state post-1994 sought to translate these wishes of thousands that gathered in Kliptown into a reality.

Bringing change to a system so pervasive and systemic like the state-sanctioned, discrimination is not an event but a process. We continue therefore, to fine-tune the process and evolve our jurisprudence to keep up with changing conditions. We reported to this Chamber of Parliament last year that we had instituted wide-ranging legislative reforms.

These reforms include the very effort of curbing the abusive practices visited on workers everyday by the system of labour broking. The fact that both business and labour are up in arms with regard to some of the proposed changes, tells us that we are doing something right.

We promised to continue protecting vulnerable workers as enjoined in the Freedom Charter where it says, "miners, domestic workers, farm workers and civil servants shall have the same rights as all others who work."

One of the most effective tools the department employs in protecting the vulnerable sectors of our society are sectoral determinations which regulate the minimum wage that workers can earn in a given industry. Let me repeat: Sectoral determinations regulate the bare minimum wage. To this end, in the past financial year, the department has amended and reviewed the determinations in the hospitality, contract cleaning, civil engineering, private security, taxi industry, wholesale and retail, and farm workers sectors.

We are proposing the following changes to the Unemployment Insurance Act: Increased benefits to beneficiaries; benefits period from eight to 12 months, which means workers will be paid over a longer period without additional contributions; the inclusion of domestic workers on maternity benefits; in addition a woman who goes on maternity leave will be paid at an income replacement rate from 38% to 66%; workers will be given adequate time to claim Unemployment Insurance Fund, UIF, up from six to 18 months for death benefits, and 12 months for other benefits.

A caring society will always strive to bring those in need under the protective blanket. The proposed changes to the Compensation for Occupational Injuries and Diseases Act will see domestic workers and farm workers covered by these protective measures. We continue fighting the scourge of child labour, compound labour, the tot system and contract labour as stated in the Charter.

In June, we will be hosting the World Day Against Child Labour in Mpumalanga after successfully doing so in Limpopo last year. We are well aware that children are made to do work not suitable for their age, especially in the agricultural sector.

Alongside our sister departments, we realise the shortage of skills in our economy and are working to make a difference in this field. To this end, we have partnered with the SA Maritime Safety Association to enable them to tap into our system for the cadets they want to put through the paces of training. We have also agreed to work with the Department for Higher Education and Training to have these cadets placed at FET colleges. As you will hear later, we have also partnered with Sector Education and Training Authorities, Setas, to provide training for youth and unemployed people.

I would also like to take this opportunity in congratulating the 2013 class of the Workers' College, KwaZulu-Natal, which was awarded diplomas by the University of KwaZulu-Natal in fields like labour studies and labour economics. This college, which is partly funded by the Department of Labour, provides capacity building for union officials of the three federations' affiliates to obtain a national academic qualification.

Ordinarily, it would be ideal if these colleges were available in all the provinces. And we may very well be approaching the fiscus in the next Medium-Term Expenditure Framework to explore whether this noble concept could not be replicated.

We will also continue lending weight to other efforts to build capacity through our support of Ditsela which is involved in building capacity by training union officials with the funding which has been in place since 1996. For the next three years, R30,4 million has been allocated for this purpose. Colleagues and compatriots, as you are aware, the Department of Labour is comprised of critical branches and allow me to give an update on the different entities.

The Unemployment Insurance Fund, UIF, continues to play a pivotal role in the area of job creation, ably guided by its board. The UIF and Industrial Development Corporation, IDC, continued their collaboration through the issuance of an additional bond of R2 billion, which has increased the total bond to R4 billion. Funds are used to lend out to businesses that aim to create or save jobs. So far, 21 234 new jobs were created and 20 161 saved for the period up to 31 March 2013.

For the period 2013-14 financial year, this investment has increased from 5% to 10% of the total investment portfolio. We have also allocated R3,2 billion to the Public Investment Corporation, PIC, to plough into job creation projects, over and above the amount allocated to IDC. We are establishing an advisory committee at UIF to ensure that the money invested by the PIC on our behalf creates and leads to job retention. In addition, the UIF will continue funding Productivity SA's Turnaround Solutions to the tune of R39 million a year to assist companies in distress to save jobs and keep people in employment.

The department will also continue re-skilling beneficiaries who lost their jobs for reintegration into the labour market through its Training of the Unemployed initiative. An amount of R210 million has been set aside for the current financial year and R1 billion over the three-year rolling period.

In the 2012-13 financial year, three training initiatives were rolled out, involving 1 000 UIF beneficiaries and unemployed youth on various ICT-related programmes in collaboration with the Media Information and Communications Technology Sector Education and Training Authority, Mict Seta; 1 000 on mining-related artisan programmes in collaboration with the Mining Qualifications Authority; and 1 500 in various artisan trades in collaboration with the Merseta.

The UIF has maintained its commitment of R1,2 billion made towards the funding of the Training Layoff Scheme. It has also remained true to its core mandate of collecting contributions from employers and paying benefits to employees who qualify. During the 2012-13 financial year, the collection of revenue increased by 9,8% from R12,3 billion to R13,5 billion against the payment of benefits of R6 billion to 500 000 persons. The projected revenue is R13,9 billion.

The UIF continues to look for ways to improve accessibility for its services, including enhancing the uFiling system to include an online claims portal. The system is being piloted among the few accredited employers with a plan to fully launch it during this financial year.

On Inspection and Enforcement Services, IES, in the last financial year, we lost one of our members, the late Deputy Director-General, DDG, for IES, Ms Siyanda Nxawe Zondeki. May her soul rest in peace! In terms of the work of this branch, during the past year, the department adopted a more targeted approach to inspection and enforcement to deal with the most problematic sectors as well as the high risk sectors where levels of noncompliance and injuries on duty are more pronounced.

In the 2012-13 financial year, we have conducted 141 744 inspections in these sectors alone. Of these, 112 672 were in what we term the problematic sectors and 28 803 in the high risk sectors. The provincial breakdowns for these inspections are as follows: 12 843 in the Eastern Cape; 8 550 in the Free State; 18 108 in Gauteng; 17 992 in KwaZulu-Natal; 10 730 in Limpopo; 7 418 in Mpumalanga; 4 408 in the Northern Cape; 10 197 in the North West; and 11 546 in the Western Cape.

Under public employment services, in June 2012, the department officially launched the jobs fairs and summits that were conducted in all nine provinces intended to provide an opportunity for work seekers to meet prospective employers, in both private and public sectors. The immediate effect of these jobs fairs was as follows: 23 726 work seekers were registered; 14 253 work seekers received employment counselling; and 8 051 job opportunities were registered by employers accompanied by pledges of real and immediate job opportunities from employers.

During the last financial year, our employment services managed to register 600 251 work seekers in total. I will give the copy of the breakdown to you, Chair, because of the time. These are persons who register with the labour centres of the department throughout the country. Many of the work seekers that we register, however, come to our offices to claim unemployment insurance benefits.

The service managed to provide career counselling to 264 068 work seekers. The total of 16 171 were placed in job opportunities with the following breakdown: 1 856 in the Eastern Cape; 1 445 in the Free State; 5 050 in Gauteng; 1 158 in KwaZulu-Natal; 893 in Limpopo; 2 603 in Mpumalanga; 1 093 in the Northern Cape; 1 103 in the North West; and 961 in the Western Cape.

At the same time, 2 620 companies registered vacancies on Internal Revenue Service, IRS, with the following provincial breakdown: 162 in the Eastern Cape; 193 in Free State; 769 in Gauteng; 224 in KwaZulu-Natal; 310 in Limpopo; 224 in Kwazulu-Natal; 310 in Limpopo; 277 in Mpumalanga; 162 in Northern Cape; 182 North West; and 341 in the Western Cape.

Last year, I reported that the Sheltered Employment Factories that fall under the department and employ more than 1 000 persons with disabilities had started a turnaround strategy. They are located in seven out of nine provinces. I will also give the copy to you, Chair, for the breakdown per province. The provinces of Limpopo and Mpumalanga will get their factories in the next three years as the business case has been finalised.

The Compensation Fund is responsible for managing the Compensation for Occupational Injuries and Diseases Act which deals with compensation for injuries and diseases contracted in the work environment. The fund has experienced challenges in the last financial year which have been brought to the attention of the select committee.

In our last budget we also made a commitment on the implementation of a turnaround strategy. This has been partly implemented. This includes the promise that was made last year, to launch the online submission on return of earning system which happened in May 2012. Close to 200 000 employers switched from manual to an online submission system and the fund was able to collect over R7,3 billion in revenue as a result thereof.

In the period under review, the Compensation Fund paid out over R775 million in pensions to over 295 000 pensioners. We also indicated last year that special attention will be given to improving claims management system. I am glad to say that there have been some improvements on this front, but more still needs to be done. We have managed to process 934 000 invoices in medical payments amounting to R1,5 billion.

I have directed the commissioner and the director-general to initiate a process of piloting the Rand Mutual Assurance, RMA, claim system as a matter of urgency and provide me with regular feedback. We will also be amending the Compensation Fund Act to introduce an enabling provision for rehabilitation and early return to work for the injured and diseased workers. The fund has funded a total of 21 social civil society job creation projects and the discussions with the PIC to allocate R3,5 billion investible income for job creation and infrastructure development projects.

In the area of labour relations, the past year has raised a number of challenges. The department will continue to work with our social partners to stabilise areas where there is conflict in labour relations.

I also want to acknowledge the important work that is being carried out by the CCMA in mediating and conciliating disputes and providing other support, including to the platinum mining companies. It is crucial that employers and trade unions do whatever they can to stabilise incidents of unrest wherever they occur.

Regarding our obligations to the International Labour Organisation, ILO, South Africa has been in the forefront of ratifying the different conventions. Recently Parliament ratified the following: Maritime Labour Convention of 2006; Convention concerning Work in the Fishing Sector of 2007; Labour Inspection Convention of 1947; and Domestic Worker Convention of 2011.

The HIV and AIDS Code and Technical Assistance Guidelines have been reviewed and aligned with the ILO's Recommendation 200 concerning HIV and AIDS and the world of work, has also been adopted. The department also hosted a successful Employment Equity Indaba which sought to place back in the public discourse the issue of workplace transformation. This is especially more urgent now to begin to take stock of the impact of the changes that the democratic government has made.

The Commission for Employment Equity's latest report shows that there is still a long way to go, with the Western Cape coming as the worst performing province. The Eastern Cape and Limpopo have done very well, while in others there is some discernible progress.

Earlier in the year we reviewed the sectoral determination of the farm workers. A number of farmers indicated that they could not meet the determination of R105 a day. We made it clear that subject to certain conditions, it was possible for temporary exemptions to be granted. So far we have received a total of 1 988 applications for exemption: 64 has been granted; 470 refused; 534 still outstanding; while 854 have been referred back to applicants for further information.

The provincial breakdown is as follows: 115 in Eastern Cape; 260 Free State; 37 in Gauteng; 139 in KwaZulu-Natal; 200 in Limpopo; 331 in Mpumalanga; 147 in Northern Cape; 146 in North West; and 613 in the Western Cape.

Let me now turn to the priorities of the Department of Labour for the remainder of the current financial year. For the 2013-14 financial year, an appropriation of R2,4 billion has been awarded to the department and have been allocated as follows: R23,2 million in respect of salary adjustments; R50 million in respect of the Sheltered Employment Factories for implementation of the business case; and R85 million in respect of the CCMA's roll-out of the web-based management system.

In this financial year, the department has an opportunity to manage for the first time in 10 years, its own IT services. Improvement in the functioning of the Compensation Fund will be effected. In particular, the claims backlog will be substantially reduced and the turnaround times on claims and employer services improved.

In relation to our legislative and policy environment, we will be focussing on: Amendment of the Unemployment Insurance Act; amendment of the Compensation for Occupational Injuries and Diseases Act; amendment of the Occupational Health and Safety Act; and amendments to other labour legislation including the promulgation of the Employment Services Bill that are currently before Parliament.

This financial year, we are going to upskill 1 000 domestic workers as well as train farm workers in terms of the Basic Conditions of Employment Act, Labour Relations Act and sectoral determinations. The current year should be one in which the department can focus on promulgation and implementation to improve worker protection and employment security.

Allow me then hon members, to thank the chairperson and members of the select committee for their work in keeping us on our toes. We also thank our social partners; that is organised labour, organised business and community constituencies for their support. Lastly but most importantly, I want to thank all department officials led by the director-general, who is the former Chief Whip of the Majority in this Parliament, for their support. I would particularly like to thank the staff in the Ministry whom I sometimes give a hard time.

I would like to finally commend the budget of the Department of Labour to the hon members of the House, for them to support us. I thank you, Chairperson. [Applause.]

Ms M P THEMBA / /Mosa/A N N(ed) / END OF TAKE

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THE MINISTER OF LABOUR

Ms M P THEMBA: Chairperson, hon Ministers Oliphant and Nxesi, the directors-general from both departments and hon members of this very important House, as we consider Budget Vote No 18 of the Department of Labour today, the Select Committee on Labour collectively supports the Budget Vote.

There is a collective understanding that this department is experiencing greater stability and a sense of purpose. We wish to join you, hon Minister, in your appeal to both the labour movement and the employers to conduct themselves with sincerity and within the framework of the law as we enter this period of industrial turbulence. To borrow some of your words, Minister, "across various sectors".

As the select committee, we are of the view that Project Shanduka, an organisational review and design project, will assist to build hegemony within the department, and further enhance stability. We have noted the concerns raised by the Auditor-General in his report about supporting documents. We take seriously our constitutional democracy-supporting institutions, and for this reason, this project should be supported so that the necessary capacity is created in all offices, so that in future we do not get such comments from the Auditor-General.

As we wish the department success with this project, we hope that it will be finished within the stipulated time frame and within budget, because although it is important to focus on internal issues, these should always be dealt with swiftly. It is hoped that Project Shanduka will provide new insight into service delivery, as this is a subject close to all of our hearts, as select committee members.

I was pleased when the Hon Minister tabled the Budget Vote and spoke about the mandate of the department – that of making sure that there is decent work under conditions of freedom, security and peace. This is in line with the founding provisions of the Constitution of the Republic of South Africa, where it asserts that the democratic state is founded on values of human dignity, the achievement of equality and the advancement of human rights and freedom.

It is with this in mind that we wish to highlight some of the issues which we understand would need not only your department's intervention, Minister, but that of other Ministries, as well. These are: Firstly, the evictions that take place from time to time, resulting in families being found next to the road. Not only does this place their lives at risk, it also means that other government departments, such as health, education and human settlements, etc, should intervene. Evictions are an attack on their human dignity, and collective action ought to be taken against such farmers.

Secondly, in cases where there are farm workers with disability challenges or whose children have disabilities, we implore you to intervene in order to assist them to affirm their rights. The dop system, where it is still being practised, should be abolished completely. Let me venture to say that this practice ought to be made a criminal offence. It represents our colonial and apartheid past and should not be allowed to continue, particularly in the Western Cape. [Interjections.] We believe the inspectorate should be capacitated to fight this fight.

With regard to the sheltered employment factories, another issue close to the committee's hearts, employment prospects in the open labour market for persons with disabilities are dismal. Thus, it is my suggestion that the department of labour, together with all other relevant departments, should combine their efforts to, unequivocally, support these factories' efforts. We had noticed that the department has, indeed, increased its efforts in this regard.

Our submission is that we should do more in the rural areas, as well as having such factories in the two provinces, Mpumalanga and Limpopo. Minister, you have just mentioned that these two provinces will, in the next three years, have sheltered employment factories, and we thank you for that. Not only is the progress being made in this area of work advancing government's national agenda on active participation in the economy of the country by persons with disabilities, it also confirms the assertion we all make in the Preamble to the Constitution of the Republic, that South Africa belongs to all who live in it, united in our diversity. When we say "all", that includes all the people, including people with disabilities. As the Select Committee on Labour and Public Enterprises, we are looking forward to seeing the concrete outcomes of the turnaround strategy promised by the department with regard to the operational problems faced by the sheltered employment factories.

In this very House, yesterday, when the report of Taking Parliament to the People of Mpumalanga was discussed, one of the cries by the people was the reluctance of mines to employ local labour. We would like the hon Minister to note this, even though I am aware that, to a large extent, this issue would reside within the jurisdiction of the Department of Mineral Resources.

Much good work has been done by the department under the capable stewardship of the hon Minister Oliphant. As we wish to thank her and her team, we have also noted the added focus on the administration of the Unemployment Insurance Fund, as well as on maternity benefits.

We acknowledge your commitment and implore you to remain as vigilant as you are so that we do not fail in our international commitments, as you outlined in your speech. The select committee therefore supports the Budget Vote. I thank you.

THE MINISTER OF PUBLIC WORKS /Robyn/ END OF TAKE

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Ms M P THEMBA

The MINISTER OF PUBLIC WORKS: Hon Chairperson, my Cabinet colleague hon Minister of Labour, Comrade Mildred Oliphant, hon MECs, hon chairperson and members of the Select Committee of the Public Service, hon Members of Parliament, distinguished guests, ladies and gentlemen, today I will present the Budget Vote for 2013-14. I will also account for what we have done as the department over the last year, and most importantly, convince this House that the Department of Public Works is serious about turning itself around; and that we have a plan to take us forward.

The departmental budget allocation has been reduced by 20% from R7, 7 billion in 2012-13 to R6, 2 billion in 2013-14. The decrease is attributed to the following: The phasing out of the devolution of the property rates grant to provinces; Cabinet approved budget reductions of R1, 5 billion over the Medium-Term Expenditure Framework, MTEF; and shifting of R290 million to the Department of Home Affairs for border management.

Adjustments to the department's baseline reflect ongoing reorganisation of the department and new priorities, and include reprioritisation of R827 million to the administration and the immovable asset management programmes to provide for the implementation of a turnaround programme of the department.

The department's budget reflects government priorities and our efforts to address in particular, outcomes 4, 8 and 12. In relation to the National Development Plan, NDP, my department is aligning its activities to support the goals of the NDP.

On the issue of the Expanded Public Works, EPW, the programme remains an effective part of the government's response to the triple challenges of poverty, unemployment and inequality. Our initial target in the second phase of the EPWP for the period of 2009 to 2014 was to create 4, 5 million work opportunities. This has been increased to nearly 5 million work opportunities, with a special emphasis on the unemployed youth and women. As part of this, some 800 youth will be recruited for artisan training in order to be employed by the national and provincial Departments of Public Works.

I am pleased to announce that the problem of underspending on the EPWP Incentive Grant, which amounted to R358 million in 2011-12, has been eliminated in the financial year 2012-13. None of this would have been possible without the active partnership co-ordination and participation of the provinces, municipalities, nonprofit nongovernmental organisations, community-based and faith-based organisations.

As we move into phase two of the EPWP, we have to ensure that all these stakeholders are supported where necessary and that collectively we further upscale the EPWP. We need to embed EPWP in the roll-out of Strategic Infrastructure Projects which we call, SIPs, and ensure that collectively as government departments at all levels, and the state-owned enterprises utilise the EPWP and labour-intensive methodology to maximise job creation.

Concrete examples of the EPWP projects include the Eastern Cape provincial Department of Public Works and Roads and the Department of Defence. We are rolling-out low-cost bridges. In KZN, the Road Maintenance Project at the Newcastle Local Municipality at Madadeni is 100% labour intensive. It helps in providing livelihood and skills transfer as well as reducing flooding.

In the Northern Cape, the Hakskeen Pan and the Bloodhound Project within the municipality area of Mier, is helping in clearing and preparing a track for the latest attempt on the world land speed record. It involves work for 317 EPWP beneficiaries, 60% of which are women and long-term benefits in terms of tourism resulting from the media exposure for this unique facility; the world's longest and fastest racetrack.

In the Western Cape, we have the street cleaning project in the Breede Valley Municipality. In the Free State, the EPWP Social Sector Early Childhood Development Programme has trained 1, 310 practitioners and matrons in the Grade R curriculum over the last three years; that's 360 in 2012-13. In North West, the Angels of Tomorrow Community Support Centre partnered with the Mafikeng Local Municipality to create 400 work opportunities, involving the following programmes: waste collection, maintenance of roads and storm water drainage, as well as the care of parks and graveyards.

In terms of capital projects, in the course of 2012-13, some of the 241 projects were completed, including the upgrading of the Nelson Mandela Museum in Mthatha. The capital projects created some 18 815 jobs during 2012-13. The target for the 2013-14 financial year is approximately 40 000 jobs. Some 300 capital projects will be completed by the end of March 2013; these include the Matola Raid Monument in Mozambique.

The erosion of core professional services of the department has impacted negatively on our ability to deliver on the mandate. The following mitigation measures have been adopted: The department has secured a budget appropriation of R66 million to fill 88 out of 219 vacant and unfunded core professional positions; Joint professional teams of highly technical people have been created to support the smaller regional offices and to work with the major client departments; and the department has mapped out the roll-out programme to resuscitate maintenance workshops with priority areas being Western Cape and Gauteng.

With regard to the Asset Investment Management, concrete achievements and plans include the following: Eleven buildings were rehabilitated in 2012-13 with a further 15 earmarked for the current year in order to accommodate user departments. As part of the accessibility programme, 42 buildings were made more accessible for people with disabilities last year, with a further 146 buildings prioritised for the current financial year. Two properties measuring 433 hectares earmarked for sustainable human settlements were approved for release in 2012-13. A further five properties have been identified for the release in the current year. In terms of the Inner City Regeneration, targets for 2013 include: The completion of the Precinct Development Plans for the West Capital and Paul Kruger Street as part of the Tshwane Inner City Project and the Master Plan.

In implementing the Green Building Programme, a number of pilot projects in water efficiency, waste management, energy efficiency and eco-labelling of the construction materials are being rolled-out. Key amongst these is the current baseline study on energy efficiency targeting 1 000 public buildings.

On the Prestige programme, we have taken firm control of Prestige by centralising it and creating a direct reporting chairperson line to the director-general. This has already resulted in the cancellation of a number of highly priced projects. All Prestige projects are now undergoing investigation. The process is complete in regard to Pretoria. We have now extended the investigation to Cape Town.

Similarly, many of the problems surrounding the security upgrade at Nkandla are rooted out in the failure of the supply chain management processes, poor management and lack of accountability. As the department, we completed our preliminary internal investigations at the beginning of last year.

We have referred our findings to the Special Investigation Unit, SIU, for further investigation. We are also co-operating with the Public Protector's investigation. Parliament will discuss our report, and the Auditor-General has undertaken to audit the Prestige projects. We have nothing to hide. We are just working according to the rules. I can assure you that as a department, we will act against any individual where evidence of wrongdoing exists.

We have revived the parliamentary village boards. Our priority is to deal with unauthorised and illegal residents, introduce an access card system and review all aspects of security. Meanwhile MPs' houses have been programmed for maintenance and upgrade. I know

that at the mention the word illegal, some of the hon members are reluctant to co-operate. We are begging members to co-operate in terms of keeping illegal people out.

Additionally, policy proposal on norms and standards would be presented to the executive for a decision by June 2013. These will be underpinned by the deployment of additional resources in Cape Town and Pretoria. The new systems will be fully operational within six months. We must know that if we buy furniture, in a Minister's or an MP's house, what is it's timespan; it cannot just be changed at will or at any how. If people break the furniture, they will have to keep it until their timespan is over.

I also need to mention that we have completed an audit of heritage buildings and have drawn up a detailed inventory of movable assets. This greatly assists in safeguarding these important heritage items and provides a baseline for the future care of the heritage buildings.

On Policy Transforming the Built Environment, the Department of Public Works remains responsible for the regulation and transformation of the construction and the property sectors. Racially skewed property ownership patterns need to be addressed, and the construction industry has to create an environment where emerging contractors graduate into sustainable businesses, women in particular.

The following processes were finalised in the last year: The Construction Charter Council was registered as a section 21 company; the National Contractor Development Programme, NCDP, driven by the Construction Industry Development Board, CIDB, was launched in December 2012; and the National Contractor Development Forum, comprising of the department and other national infrastructure development departments, has been established to co-ordinate contractor development.

The NCDP is also being rolled-out to municipalities in partnership with the Department of Co-operative Governance and Traditional Affairs, and the South African Local Government Association, Salga. On the legislative front, this year the department will be tabling in Parliament the Expropriation Bill - there is already resistance from some quarters - as well as a Bill to establish the Agrément South Africa as a public entity.

On the issue of the department's public entities, I need to mention the important work of the entities that report to the Minister of Public Works. On Agrément South Africa, the Department of Public Works has utilised the Agrément certificated product in the construction of new schools in the Eastern Cape and the North West. These new schools will be built using new materials, because we can't just reuse old materials.

On the Construction Industry Development Board, CIDB, its output include: Developing standards for government tenders and maintaining a national register of projects, as well as the contractor registration and the grading system which is both a risk management tool for the clients, as well as a development tool for emerging contractors.

The Council for the Built Environment, CBE, ensures that only registered and competent professionals are allowed to practice. It remains a major concern that only a quarter of registered professionals in the built environment are black. Last year, the CBE established a candidacy programme to help remove bottlenecks and assist young black graduates to attain professional registration.

The Independent Development Trust, IDT, continues to support the department to fulfil its mandate as well as providing project management services to the departments to deliver social infrastructure. IDT supports EPWP's management information system and the Non-State Sector programme. The department is currently working with IDT to develop a new business case to review the organisation's mandate, funding model and institutional reform, to ensure the long-term sustainability of the department.

With regard to the turnaround strategy to rebuild public works, the department's past performance has been characterised by corruption and mismanagement. This is a large and complex organisation, where all too often there is a misalignment between the mandate and the structure of the organisation. We are currently addressing the challenge of organisational structure with the assistance of the Department of Public Service and Administration.

I want to assure this House that the turnaround project to rebuild the department is now well underway. We have the funding from Treasury; the core of the turnaround team is in place under the office of the director-general, not in the Ministry. Therefore, if the Minister is recalled tomorrow it would not derail the whole turnaround.

The annual 3-year and 7-year plans are in place, developed in consultation with the Treasury. We have said that much of the DPW's problems can be traced to a long period of unstable and changing leadership. I have also said that any turnaround strategy needs to be led from the top. I believe that we have now stabilised the leadership with the appointment of the director-general, the chief financial officer and other changes at the leadership level.

Our strategic focus has been on taking control of the five key areas. The first one is combating fraud and corruption. We have worked closely with the SIU to investigate irregular leases and projects, some 40 investigations in all, of which 23 are completed. This has resulted in successful disciplinary actions, the suspension of the six officials and the dismissal of some of them, including one deputy director-general.

We have instituted court actions to recover the monies wrongly paid by the department. We are also awaiting reports from a disciplinary hearing involving a further two senior officials. Arising out of the completed investigation into the Prestige in Pretoria, the SIU has recommended that we suspend and discipline the responsible officials, a process that we have started to implement.

In light of the continued evidence of collusion between some officials and sections of the construction industry, we have started to enhance investigation capacity within the department. I don't know why people from the opposition are quiet. There is collusion by big construction companies. The opposition only talks about corruption in government when billions are in the private sector.

We are saying then that the internal audit we have conducted was empowered to commission forensic investigations; some 19 investigations have been completed. We are also establishing an internal compliance and enforcement unit - advised by SARS - as part of a separate risk management branch in the department. Looking forward, we are establishing a separate supply chain branch, and in this regard we are working closely with the National Treasury to strengthen supply chain processes. Because if you are dealing with huge tenders, you need to make sure that there are specialised people in each of these areas.

Our broad approach is one of zero tolerance: to prosecute cases of fraud and corruption, but also to put in place robust systems to make it easy for weak people to do the right thing, and make it very difficult for bad people to do the wrong things.

Regarding the immovable asset register, the state land reconciliation with the Deeds Office records was completed by 31 March 2013. This involved the records of 180 000 state land parcels. The findings will form the basis of the physical verification process, which will commence in July. This will also reveal where assets are being illegally occupied. Moreover we would be applying a fair value to our register by giving more accurate reflection of the current value of the portfolio.

Crucial to the success of this project is the ongoing collaboration between the national department and the provinces to confirm the custodianship of the land parcels and the treatment of the unregistered land. This has meant developing policies, regulations, operating models and standard reporting template that requires national and provincial departments to keep track of all state land categories.

Together with the provinces, an input and co-operation from the Departments of Rural Development and Land Reform and Human Settlements, we are rebuilding the state's immovable asset register. It is not just a simple matter of the Department of Public Works, where you just record, it's a very complex matter.

Nationally, the department has to allocate custodianship to some 3 200 land parcels and appropriately 24 000 land parcels which need to be vested. These parcels have never been vested. No one knows where they belong. This is a process which is expected to take until March 2016 to complete. My point here is, although this is a lengthy exercise, I am very confident that we are on track for the creation of an asset register that will for the first time ever accurately reflect the state's assets.

Let me make a further point that this is a real game changer. With a sustainable register of the state immovable assets in place, we will have at our disposal the tools to leverage this massive property portfolio for economic development. This will also assist us to drive the transformation of the property sector in South Africa, which is running into billions.

With regard to the audit of the leases, the department presently manages 2 788 leased properties across the Republic. In his 2012 budget speech, the Minister of Finance announced the Treasury's support for a national audit of leases by the Department of Public Works. This was a timely response to the numerous lease scandals at that time. To date, 100% of these leases have been reviewed. Of these, 1 316 required attention, revision or renewal. Three hundred and sixty five of these leases have already been addressed. Recommendations for the remaining 951 leases will be in place by the end of June 2013. Meanwhile, all new leases are now correctly processed.

On the issue of improving audit outcomes, the clean audit project was initiated in December 2012 to address audit queries and includes a consortium of specialist service providers deployed across the department's head quarters and 11 regions. I am pleased to announce that the department has appointed 64 unemployed commerce graduates as part of this initiative. In fact, we are adding another 100 and therefore this number is likely to increase. Skills development of finance and property staff is a vital outcome of this; we will have to take them into special programmes.

The DEPUTY CHAIRPERSON OF THE NCOP: Hon Minister, please conclude.

The MINISTER OF OPUBLIC WORKS: Thank you Madam, I want to conclude by thanking a number of people who have been working with us. One of the important programmes that we have to operationalise is the property management trade entity. We were given a mandate in 2006 and nothing has happened. We are busy trying to ensure that this process is on track.

Again let me thank all those who have worked with us, the MECs, the DDGs, heads of the departments, the Auditor-General, the Public Protector, the SIU and the parliamentary committees, Treasury and particularly the officials who have been working with us. It is clear that whilst we must never underestimate the magnitude and the scope of this task, even so, we have stabilised the department.

We are making a real progress in tackling immediate and systemic challenges. We have put in place the building blocks; we have a plan to rebuild Public Works. Together we can make Public Works work. Thank you. [Applause.]

Mr M P SIBANDE / EKS/LIM CHECKED// END OF TAKE

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The MINISTER OF PUBLIC WORKS

Mr M P SIBANDE: Hon Deputy Chairperson, hon Ministers, hon members, in his 2013 State of the Nation Address the hon President said that we should put South Africa first. All of us have a patriotic duty and responsibility to build and promote our country.

If there is one ministry and one department who has taken these words of the President to heart, it is definitely that of Public Works. I will make use of this speaking opportunity to substantiate my claim. I will highlight various issues which show that Public Works have been moving from strength to strength from the date it came under the political leadership of the hon Minister Nxesi, Tolo, Dlangamandla, Mxhenge.

The ANC reaffirms that, while unemployment, poverty and inequality are the most pressing challenges we face, our most effective weapon in the campaign against these scourges is the creation of decent work. We therefore believe that programmes that directly absorb the unemployed define our perspective on economic and social transformation. It is important for unemployed persons to be able to access work from community-based employment schemes.

Public Works contributes to the priorities of the National Development Plan, NDP, through the implementation of initiatives that relate to job creation. The Expanded Public Works, EPW, ensures the creation of work opportunities and the provision of training for the unskilled and unemployed.

Through its co-ordination of the expanded public works programme, the department aims to create 3.7 million work opportunities by the end of 2016. This is not an easy target to set oneself but I am certain that Public Works will reach the target if not surpass it. The department's other job creation programmes include the young professionals programme, the internship programmes and the learnership programme for graduates from sectors relevant to the department's core business, and the resuscitation of regional workshops through the artisan training programme.

The developmental state requires that we must make our government more capable and effective, with the technical and political capacity to lead development and transform the economy. This will require, amongst others, a professional public service that combats inefficiency and wastage in the public service, improving the productivity of public servants and ensuring much tighter accountability, with firm consequences where there is a failure to deliver services.

The performance of Public Works is influenced by the turnaround strategy announced by the Minister in January 2012. The department reprioritised R464 million over the medium term to fund its turnaround strategy, which focuses on lease and property management portfolios. It indicates that it expects a gradual decrease in spending on consultants over the medium term as it sources the required skills and technical expertise, and strengthens the skills and experience of its existing staff as part of the turnaround programme. The reduced spending is also due to an in-year reprioritisation of infrastructure funds declared as a saving during the adjusted estimates of national expenditure in order to provide funding for the turnaround programmes.

Due to the programme requiring a complete transformation of the department's structure, personnel establishment and systems, in line with the new business model, spending increased on computer services and agency support and outsourced services in 2012-13. The spending focus over the medium term will be on continuing to cover operating lease and property management costs associated with the department's property portfolio and implementing the turnaround programme. A successful turnaround project will definitely mean that funds are wisely and prudently spent.

The mandate of the Department of Public Works is the custodianship and management of a significant portfolio of national government's immovable assets. Spending on consultants and other outsourced services increased significantly in 2012-13 as the department appointed service providers to perform the physical verification of capital assets and populate key fields in the asset register as part of the department's turnaround process. This will allow the department to create a baseline asset register, which is a key priority in remedying the negative audit findings the department has received in the last two years. The department is on track with the creation of an asset register that will, for the first time, accurately reflect the state's assets. With such a sustainable register of state immoveable assets in place, the department will have available, the tools to leverage its gigantic portfolio for economic development.

The ANC has through its 101 years history always embodied and aspired to the highest morality and values of South African society. The ANC believes that corruption is a systemic and institutional phenomenon that erodes social cohesion and values and has resolved at its last two national conferences that ANC members and leaders will continue to actively promote ethical and democratic values and provide leadership to society as a whole in the fight against corruption.

IsiZulu:

Ngiyeza kuwe.

English:

As far as good governance is concerned, one cannot but mention that the challenge of corruption is often associated with the construction sector. It is a challenge that Public Works has had to deal with, that of corrupt officials working with corrupt businessmen who siphon off public funds preventing optimal service delivery to the poor.

IsiZulu:

Ngqongqoshe ubuqinisile, ngoba la mabhizinisi amakhulu ayabandakanyeka, akufuneki ukuthi siyeke ukubanga umsindo. Phela abanye babo bayingxenye yawo.

English:

We must therefore add our voices in appreciation of the tough initiatives employed by the Minister and his team to root out instances of fraud and corruption within the department. The initiatives are reflective of the seriousness with which government is tackling occurrences of corruption within its ranks in a transparent and open manner. The department is clamping down on fraud and corruption with the assistance of the Special Investigative Unit,SIU, thereby bringing stability to the department to enhance its delivery on key projects. According to the Minister, at least six officials have already been put on suspension and three dismissed, while the process to recover monies wrongly obtained is underway.

We are also aware that the department is currently investigating all prestige projects, that it has stopped a number of overpriced projects and has moved to ensure that all projects under the prestige branch fall under the direct control of the Director-General to curb potential fraud and corruption. I am sure that we all welcome the great progress made by the ministry regarding the stabilisation of the department and its strong actions against fraud and corruption, which threatened to undermine its confidence amongst the public and its ability to deliver on its mandate. I do not doubt that we all commend the Minister for his bold and progressive plans for the department.

I wish to address these words directly to the hon Minister Nxesi. South Africa is growing and at the core of that growth is infrastructure development. It is an industry that is central to South Africa's growth as we are all aware of the Infrastructure Development Plan outlined by the President Jacob Zuma last year. There are 18 Strategic Infrastructure Projects, some of which will reach beyond the borders of South Africa. Your efforts, Minister, come at an important time in the history of our country.

IsiZulu:

Sihlalo ngicela ungivumele ngike ngidlulise lokhu okubili okulandelayo. Kunomyalezo engiwuphethe la. Ngivumele ngidlulise nangu umyalezo ophuthumayo. Ngizothanda ukwazisa la mabhoxongwana ukuthi ngokhetho oluzayo uKhongolose uzobaxebula ngesibhaxu kuphela! Bazosala bebhocobele njengaphambilini. Kwazise phela ukuthi uKhongolose akasinisi mahleza uma sekuya ngasokhethweni.

English:

Minister you are on the right track, I would like to thank you once more. The Committee supports Budget Vote No 7. I thank you.[Applause.]

Mr H B GROENEWALD / /sam(Eng)//ZLU//LIM// END OF TAKE

"National Council of Provinces Main",Unrevised Hansard,30 May 2013,"Take 197 [National Council of Provinces Main].doc"

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 197

"National Council of Provinces Main",Unrevised Hansard,23 May 2013,"[Take-197] [National Council of Provinces Main][90P-5-085b][gs].doc"

Mr M P SIBANDE

Mr H B GROENEWALD: Deputy Chairperson, hon Ministers of Public Works and Labour, hon members of the NCOP, officials of the departments and guests, the DA believes that the turnaround strategy of the Department of Public Works' announced by the hon Minister in 2012, is busy rearranging all spheres of the department.

We also believe that the strategy of openness will be followed and that all contracts of billions of rand which were allocated to poor service providers and to people with political connections to the department and the state will stop. It is not acceptable to hand out tenders to the elite in the ruling party. That is fraud, and South Africa cannot afford it. The public is losing confidence in government, if there are no strong fighting actions against fraud and corruption. The time has come for the ruling party, after many years of governing in South Africa, to stop with all the excuses regarding bad service delivery and performance. There was enough time to train people and place people with the required compliance-prescribed qualifications and experience in management positions.

The Expanded Public Works Programme, EPWP, is supposed to create job opportunities for 4,5 million people, mainly the youth, by 2014 and to look after poverty alleviation in South Africa. I am afraid that with the bad economic situation in the world, the department is far from reaching this mentioned goal. There are still large numbers of workseekers who cannot enter labour markets and struggle to have a normal life of opportunity and dignity in their communities.

The hon Minister referred to the fact that the department had been stabilised and that the problems encountered in the past were something of the past. Hon Minister, on that note, let's keep it up. The DA hopes that the 2013-14 budget of R6 billion will be spent without any corruption and fraud and will also help job seekers acquire sustainable jobs in and through this department, as well as in other government departments. The department must provide for 20% technical vacancy posts to be filled with compliant, qualified, well-trained, skilled persons and not with political friends and cadres or consultants who use the budget without any positive results.

Service delivery by the department must be to all the people of South Africa. They must have good clinics and hospitals, as well as functional schools. Every citizen of the country must have the benefit of services rendered by the department. There are still 4,7 million youth without jobs, as well as many mud schools and unsafe structures in every province of South Africa. South Africa needs more social structure development. The department serviced a very patient public for many terms, and it is about 20 years, with unskilled cadres, and now we must take the responsibility, moving on for a better place for all the people of South Africa. The department must also be aware that the officials are there with no political affiliation. They are there, as officials, to deliver a service to South Africa and its people.

What about the maintenance and service of the Immovable Asset Register of the department? The buildings are not renovated on a regular basis. There is no proper control over the renting of state-owned buildings. The rental of buildings is not kept on record. The revenues are not paid by the tenant or occupant, neither by families, friends, or relatives of the officials of the department. It is not acceptable that the asset register is not in place and government does not know where government land and properties are in South Africa, as well as in foreign countries. We believe that the asset register will be in place by 2016, as promised by the Minister.

It is very expensive to keep heritage buildings in a respectable condition, as is mentioned in the audit report. Government cannot afford to let these ministerial houses fall apart and be replaced with new, modern houses. Public Works has a responsibility to the historical buildings of South Africa and, therefore, these buildings must be kept in a satisfactory condition.

If you want to make a success as a department, you must be honest with the public, be transparent, and not try and hide the spending of public and taxpayers' money. It is unnecessary to keep any secrets from the public. Inform the public of what the expenditure was at Nkandla. Who was corrupt? Who stole taxpayers' money? [Interjections.] It is the right of the public to know what is going on in the department regarding the budget.

Hon Minister of Labour Oliphant, the Statistics SA Quarterly Labour Force Survey released on 6 May 2013 shows that South Africa's official unemployment rate for the first quarter of 2013 has increased to 25,2%. This means that there are 1,2 million more South Africans unemployed today than there were on the day hon Zuma became President. The report includes an increase of 73 000 in the size of the group of people who are unable to find work or have given up looking for work. This represents a tragedy, especially for the millions of unemployed youth who remain held back by a lack of work opportunities. The situation is simply unacceptable and a clear indication that the ANC is failing the poor and unemployed. [Interjections.] President Zuma pays lip service to reducing unemployment in South Africa but fails to follow through with his commitments.

The Minister of Labour and the department must work on the frigid relationship with Cosatu and ensure that pro-growth policies are implemented without any further delay and that the National Development Plan, NDP, is implemented whether they like it or not. Cosatu in the North West Province was unhappy with the Minister's dreary attitude in resolving complaints by the National Union of Mineworkers, NUM. The conflict between Lonmin mine and the NUM at Marikana regarding the closing of their offices at the end of May 2013 continues. The Department of Labour had a big role to play, not only at Marikana but also at Medupi power station and the farms in the Western Cape province in De Doorns. The DA is happy about the great strides being made in the completion of amendments to various labour policies. The stagnation in implementing the Employment Equity Act is a worrying factor, and Parliament must speed up to improve the Employment Equity Act in terms of enforcing the implementation of the Act.

Lastly, the Minister said: We need to educate workers about laws and workers' rights. We also need to educate workers about how to handle negotiations. It is high time that President Zuma and the Minister start putting South Africa' future ahead of their own political interests in the tripartite alliance. I thank you.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Just hold on.

Mr F ADAMS: Chair, no, he is running away like his Madam Zille. [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Adams, unfortunately, he has run off. [Interjections.]

Mrs L MABIJA /Mia / END OF TAKE

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 198

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"National Council of Provinces Main",Unrevised Hansard,23 May 2013,"[Take-198] [National Council of Provinces Main][90P-5-085b][gs].doc"

Mr H B GROENEWALD

Mrs L MABIJA: Hon Chairperson, hon Ministers in attendance, hon members of the NCOP, directors and staff members, distinguished guests, ladies and gentleman up there in the gallery, warm greetings to you all this afternoon. It is indeed an honour and a pleasure for me to participate in this debate.

Chairperson, after the recent global economic downturn our country's resilience was tested to the limit, the slow recovery has meant that the attainment of our employment targets became difficult. Unemployment has grown by 0,3% in the first quarter of 2013 to 25,2%. The majority of those unemployed are the youth.

The resent strikes in the platinum belt, the road freight industry as well as other sectors have added to this strain. It is in this context, hon Chairperson, that we welcome the department's undertaking in their Annual Performance Plan for the 2013-14 financial year to, amongst other things, deal with these challenges.

Chairperson, the ANC, notes and welcomes the promise made by the Minister that she intends to engage the leadership of the labour movement to discuss the adversarial nature of our industrial relations, and to explore various ways to arrest the potential threat to our system of collective bargaining.

The department in its budget has also set aside funds to deal with labour policy and an Industrial Relation Programme. I am sure that we all agree that there is a need to strengthen and to bring stability in the labour sector.

It is within the mandate of the department to take all necessary measures to achieve these objectives. In her Budget Speech, the Minister reminded us that as the department, they are directed to regulate the labour market through policies and programmes developed in consultation with social partners, which are aimed at improved economic efficiency, productivity, employment creation, alleviation of poverty, unemployment, enhancing occupational health, safety awareness, compliance in the workplace; and nurturing the culture of acceptance that workers rights are human rights.

For example, the 23 August 2011 Nickolaus Bauer report on the conditions of farmworkers in the Western Cape Fruit and Wine industries, revealed shocking details of human rights abuses. Again the Human Rights Watch report entitled "ripe with abuse" details the daily experience of many of the provinces, 121 000 farmworkers , who face harsh treatment from employers, exposure to toxic pesticides and often no access to drinking water and toilets. [Interjections.]

Mr M J R DE VILLIERS: Chairperson, on a point of order: It is improper for any member to talk directly to another member. Remember, he must talk to you as the Presiding Officer. [Interjections.]

Mrs L MABIJA: I will proceed because even the hon member disturbed me without going through the Chairperson. So, let us proceed. Despite working in one of South Africa's most profitable industries, the workers in the Western Cape Province earn among the lowest wages in the country, and most in the sector who live on farms, where they work and face constant threats of evictions due to unfavourable land tenure rights.

Minister, as part of its recommendations, the Human Rights Watch, HRW, has requested the Department of Labour to enforce compliance with existing labour laws and impose sanctions on violators.

We are therefore, looking forward to engagements with the department when the proposed amendments to labour legislation is brought to this House to see the extent to which those would enhance sound industrial relations.

Chairperson, when it comes to inspectorate and enforcement, we are also glad that the department in their strategic plan have prioritised this matter. It is common course that regulation without enforcement is as good as not having those regulations.

It is therefore, important that this area of work within the department receives our support and we stop complaining, my friends. We thus, welcome the drive to strengthen the institutional capacity of the department in order to improve the quality of service delivery. There are a number of employers out there, who do not want to do the right thing and we rely on the department to save the situation.

We therefore, welcome the department's turnaround strategy through the Project Shanduka, ably led by the director-general, who seeks to improve the organisational culture of the department and to improve management and accounting systems.

In as much as we still have challenges of capacity in this area of work, I think at times we can be too harsh on ourselves by not acknowledging the good work done.

In this regard I wish to remind hon members, that recently we saw on television an incident in which a factory collapsed on workers and scores of people were injured and many lost their lives. Often, it is when things go wrong that we want to apportion blame but, when nothing bad happens, we don't stop and ponder why things are happening as they should.

All I am saying is that we need to appreciate these unsung heroes and heroines, even if they are just doing what they are paid to do. As the ANC, we support these efforts because they make sure that the mandate of the department is realised, and also promotes the rights of workers as enshrined in the Constitution of the Republic of South Africa.

When it comes to employment creation, every effort at dealing with reducing poverty and unemployment ought to be welcomed. We also note and welcome the fact that the Minister, through her department, is engaging other Cabinet colleagues as well as the private sector in this regard. A collective effort is needed if we are to reverse the unemployment statistics that I quoted in the opening paragraph of this input.

Hon Minister, please continue with the job fairs in the various provinces. As members of this Chamber, who from time to time go to provinces during the Taking Parliament to the People programme, we are confronted by questions around access to such opportunities, particularly in the far-flung rural areas.

The request put to us is often about access to services by the department, especially young persons who wish to register themselves on the department's data-base. The challenge is that offices are situated in the already well-developed city centres.

Hon Chairperson, we are confident that the Minister and her director-general would specifically and speedily attend to the challenge that too many farmers are now applying for exceptions from the minimum wage determination in the farming industry.

ANC commends the Minister and her department for hard work, understanding that there is still more to be done. The ANC supports the Budget Vote. Masha! Mudzulatshidulo [Thank you, Chairperson.]

Mr R CARLISLE / MALUTA ///tfm\\\ END OF TAKE

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 199

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"National Council of Provinces Main",Unrevised Hansard,23 May 2013,"[Take-199] [National Council of Provinces Main][90P-5-085b][gs].doc"

Mrs L MABIJA

Mr R CARLISLE: Chair, the two hon Ministers, Members of the National Council of Provinces and all other good people who are here today, good afternoon. There is an interesting distinction between the two Ministers present here. One is always faced with a problem, and it is unusual for me to stand here and complement the ANC. The problem is that when one finds a Minister that one would like to complement, one is not sure whether one is actually signing his death warrant or not. [Laughter.]

I do want to assure my Minister that I do not want to sign his death warrant. I do want to express my respect and admiration for what has happened in your department since your arrival. I think I have served longer than any other MECs in that particular portfolio, and you are my third Minister. I was astonished by the speed in which you grasped the central issues of the department; and very specifically, the absolute - as you call it - game maker, game changer of the asset register, control and knowledge of assets, where they where and what their value was.

We were all impressed that you were able to select the man who probably knows more about public assets than any one else, Rob Mettle, to assist you in this process. You have done an outstanding work there and it has been very helpful for us in the provinces because it has helped us to move that issue along. You have been absolutely forthright in terms of what you have found in the department. You have not sought to make any kind of secret of things that were wrong in the department. Some of them still remain wrong and it is quite clear that you are determined without fear or favour to put them right.

I think what particularly impressed me is that I have heard lots of people and Ministers talking about what they intend to do. What has been the diference here is what the Minister is actually doing, what he has already achieved and what he will achieve going forward. I want to say that if you get Public Works right in any government, you are then actually putting the most powerful motto that government has. You are actually engaging that motto.

There is a huge amount of things that can be done, because in the difficult economic time – we are in the difficult economic time – there is more value, in a sense that a well-run Department of Public Works is actually in the fiscus. I am very pleased to hear that the Minister intends to leverage that huge property asset that he has. Obviously in this province, and I am sure my colleagues in other provinces would like to join him in that. The hon Minister has already provided me with my first piece of land, and I am happy to say that the Pakhade Primary School is now almost complete. We would like to thank you for that. Minister and I had few differences of opinion on that.

I also want to say to him that in the properties which he holds, Youngsfields, Ysterplaat, Dunelm and Wingfield; and the properties that my department holds, the N1 rerouting area, Stikland, Ottery and others, between them, if we can sing our oath off the same hymn sheet as it were, we can house in due course 300 000 families. That is very necessary in this city which is the second fastest growing in South Africa.

I also want to share and I am pleased to hear - and it's not the first time he said it - that there are many talks of fraud and corruption, which he is determined to uproot in his department – and I want to say, hon Minister, I had exactly the same thing in my department, for the first few years I was there. It is not nice and doesn't make you good friends either. I just want to say that I agree absolutely with you that there are people who are bribed and also those who bribe. We must make sure that as we go after those who are bribed, we also do the same to those who do the bribing, whoever they may be.

I want to wish the hon Minister every success. I just want to give him some ideas on how things are brought in line in Public Works and how the development can be. I just want to talk about schools in the Western Cape. In the four years before I became the MEC, this province spent R630 million on building schools. In the four years up until the end of March this year, we spent R1,720 billion. In other words, three times more. In the next three years to 2015-16, in other words to the period of this Medium-Term Expenditure Framework, we will spend the total of R3,3 billion.

That means that before Public Works got sorted out and we chased out those people who were making themselves rich and putting some of them in jail, we were spending R157 million a year on schools. Since then, R700 million is now about to go up to R1 400 million. [Applause.] I have to say that it is a fantastic achievement, but it has been made possible.

I want to express my sincere thanks to the Department of Education and National Treasury for trusting us with funds and providing us with an additional R782 million to build schools. I want to tell them that we will not let them down. I want to wish the hon Minister every success.

I also want to wish the hon Minister of Labour every success. I want to say to her – and I don't mean this in any stage - but there is an elephant in the council which was not mentioned. That elephant in the council is the five million South Africans who do not have work. Not only that they do not have decent work, but they don't have a 40-hour week, minimum wages, and even a contract work. They don't have work at all.

I want to say to her that when all other things are said and done, when I go to work in the morning and I see men standing by the road begging for work, it makes me sick to my stomach. It makes me sick to my stomach because I cannot think of any greater indignity than men and women who want work, and for whom there is no work. What we need to hear from her department is what they are going to do. Not to blame, but to address the unemployment in South Africa.

Let me say that it is not going to be addressed by telling Forbes or by saying, for instance, that the worse labour practices are in the Western Cape. The other question is, why did these worst labour practices only start in 2009 when the DA took over, because I can't remember the ANC criticising it before 2009? If they are going on now, that means they were going on then.

That kind of dishonesty gets us nowhere, in terms of the serious problem. The second thing is that if these shocking things are going on, why are the Ministers and inspectors not putting farmers in jail? That is the question to ask. Hon members of the ANC, there are shocking things going on in the Department of Labour. Why are those people not going to jail? We don't help ourselves when we say those things.

Let me finish on one last point which I really would like to hear about from the hon Minister. There are 200 000 people in the minibus taxi industry who receive their money, but not employed in any sense of the word. There is sectoral determination for that industry which has not been applied anywhere. What those men and women earn is entirely dependent on their employers. They have no sick leave and annual leave. They work unbelievable hours and have no workman's compensation. They have none of the other things. The problem is that it is a huge and important industry. Employment needs to be finalised and dealt with in a responsible way. I would be pleased to hear from her as to how that would be done. [Applause.]

Mr O DE BEER / Mpho/.../TM / END OF TAKE

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 200

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Mr R CARLISLE (Western Cape)

Mr R CARLISLE

Mr O DE BEER: Temporary Chairperson, Ministers and Deputy Ministers, members in the House and visitors in the gallery, the National Development Plan: Vision for 2030 suggests that it is a priority to build a capable developmental state and to seriously address poverty and inequality. Here the Departments of Public Works and Labour play a critical role to secure the objectives of creating 4,5 million jobs by 2030. How ambitious it may sound depends on the implementation process of the policy priorities of which the 2013-14 projections are critical.

We need to give credit where it is due. The Department of Labour is one of those critical departments which play a very important role in society to create conditions which will allow our people to obtain job opportunities. The strategic turnaround plan should not be shelved to gather dust but should show the ultimate programmes which are beneficial to the working class.

Nevertheless, 19 years into our democracy, we still find farm workers who have to stand up and rise above the occasion to demand their rights for a living wage and conditions. The same applies to the domestic worker sector, which is critically exploited. I hope no-one amongst us in this House is guilty of these practices. Some of us in this House are farmers, and some of us in this House use the services of domestic workers. Can we stand up and say that we lead by example from the front?

HON MEMBERS: Yes!

Mr O DE BEER: Are we not contributing to the exploitation of this sector, which is vulnerable, by exploiting our domestic workers? I hope that the Minister will lead by example from this side of the society. We need to lead by example.

Unemployment in our country amongst the young generation is one of the biggest challenges for the department. One of the programmes of the department which alluded to that speaks to the job seeking and placement programme of the department. Your statistics on job seeking is high; I think the Minister said it is 30 000. But when you look at the placement numbers, it is low, which means that those young people in society don't have the opportunity to be part of the mainstream economy or getting job opportunities. They are disillusioned by the government. Here, at least, we are speaking of citizens of our country, not about another country's citizens who have more power than citizens of our own country, like the Gupta family. [Interjections.]

In relation to the Department of Labour and the law-enforcement agencies, the issue of tools has become a critical issue to empower those law-enforcement agencies to do their work properly. They are the law enforcers and must see to it that the Labour Relations Act is implemented, but if they don't have the necessary tools to exercise their duty, it's not going to assist the vulnerable sectors I referred to – the farm workers and the domestic workers. It's not going to assist them to buy cars which can't be driven on the farm roads, in an attempt to get access to the farm workers and the farm owners.

The other fundamental issue for the law enforcement agency is that of training. They need to have the relevant training to exercise their duty. We also sympathise with the department because some of them are poached by other law enforcement agencies that don't want to spend a lot of money on training. There must be some sort of incentive to enable retention of the expertise in the law enforcement agency of the department.

There is no way that I cannot speak about Sheltered Employment Factories, which should be reviewed in terms of their recruiting policy. There needs to be transformation taking place because, in most of the centres, they don't reflect today's society; they reflect yesterday's society.

We understand these challenges, but when are we going to address these challenges? Thank you. [Time expired.]

Mr M P JACOBS / Kn//Mia / END OF TAKE

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 201

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Mr O DE BEER

Mr M P JACOBS: Hon Chairperson, hon Ministers, hon colleagues, friends and comrades, I rise to support the Budget Vote of Public Works, without any doubt, fear or hesitation, because this department is now on course to deliver on the promises we made.

The main policy priority of the department had been outlined in President Zuma's 2013 state of the nation address. The area of focus for Public Works remains the creation of job opportunities and poverty alleviation through the Expanded Public Works Programme, EPWP; the provision of decent work and skills development for youth; the eradication of mud schools and unsafe structures; social infrastructure development; the rehabilitation of immovable assets; reducing dependency on consultants by creating internal capacity; and addressing fraud and corruption.

This is one of the strategic departments which the ANC-led government utilises to provide our people with decent jobs; the creation of job opportunities; providing skills; and the promotion of entrepreneurship. I am raising these issues because billions of rands are being used for infrastructure. These billions of rands end up in the pockets of the wrong people through fraud and corruption. These activities dilute the objectives of our government.

This department has become notorious for its corrupt activities. The Ministry has changed hands, and the Minister is lucky that he is still heading it. [Laughter.] We are aware that officials set traps for Ministers to fault, in order to get the leeway to continue with their corrupt activities. We want to thank the Minister for bringing stability to this department.

We must find a way for our people to benefit from these millions of rand. How do our people who have gotten skills from the EPWP benefit from contractors who are doing business with us? We need to sign memoranda of understanding with these contractors so that our recruits from the EPWP should get preference in their employment, and also extend their skills.

We need to encourage our EPWP recruits to form co-operatives to start their own businesses on a small scale until they have graduated enough to do jobs on a larger scale. They should be our partners in this journey by providing the co-operatives with contractual jobs, if we do not have inside jobs.

We urge the Minister's department to complete the Immovable Asset Register. It would have been ideal if this register could have been completed before we leave our term of office. We understand that its completion is estimated in mid-2016. We would love to complete the job that we have started, even if we get a draft document. We are interested in knowing which properties and land belong to the government. There are properties and state land that cannot be accounted for. Some people have literally stolen government properties because nobody has taken full responsibility. The state's land can assist our people by providing land for more houses. The land can also assist in providing our emerging farmers with land. This matter is more urgent than ever.

I know the subject that I am going to raise is close to the Minister's heart as a former shop steward of all teachers in South Africa, as well as teachers of the world. The issue is of mud schools in the Eastern Cape, KwaZulu-Natal, Limpopo, North West, Mpumalanga, Northern Cape and the Free State. In this era of our own democracy, we cannot allow a situation where our people are schooled in a dehumanising, degrading and inhumane manner.

We applaud the initiatives taken by the Minister's department to build 30 schools in the Eastern Cape, to replace mud schools. The timelines that were put in place by former President Thabo Mbeki to eradicate mud schools were never met. I know the Minister has the solutions to these problems, just as he always had solutions to our problems in our SA Democratic Teachers Union, Sadtu, national executive committee, NEC, meetings.

IsiZulu:

Thishanhloko, ithemba lothisha likuwe. [Principal, all the teachers are relying on you.]

English:

This time around you dare not fail us, and once more, the country as a whole supports the Budget Vote.

Let me respond to Mr Groenewald. [Interjections.] I think you did not hear what I said yesterday. I see you are in an electioneering mode and you were playing to the gallery. You are electioneering. You mentioned that this government is employing the elite and giving tenders to the elite in the ruling party. I want to ask you, who has the power of money to buy anything or anybody? The very same people whom you are mentioning ... [Interjections.] ... you are fronting for. [Interjections.] They are fronting for you, because you have the money to buy them.

You say that we give jobs to unskilled cadres. This is your own creation. Where will we get skills since you fed us Bantu education? [Interjections.] Where would we get those skills? Now you say that we are employing people who do not have skills. You should have given us a decent education so that we would have those skills. [Interjections.]

You talk about Nkandla ... [Interjections.] ... and I don't know whether you understand what is meant by National Key Points, since what you are saying is that you want us to expose our President ... [Interjections.] ... to death threats, so that you can assassinate him. ...

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): Order, hon Jacobs! Hon Gunda, if you want to make an interjection go to your seat. Don't make an interjection from another man's seat. Go to your own seat where you belong. Continue hon Jacobs. [Laughter.]

Mr M P JACOBS: ... You and hon Carlisle talked about unemployment. You said that hon Zuma does not give people jobs, but hon Zuma does not own any big businesses. [Interjections.] Who owns big businesses? [Interjections.] Why don't you create jobs since you own big businesses, so that you can provide our people with employment? [Interjections.] Since we came to power you have failed to create jobs but you want the government to create jobs. How can the government create jobs? It's not an employment agency. Talk to your big businesses to create jobs, so that our people can get jobs. [Interjections.]

An HON MEMBER: You are the ruling party. [Interjections.]

Mr M P JACOBS: Hon Carlisle, when you started here I think you behaved well. [Interjections.] I thought that you were now coming to our side. Our doors are open and you can join us in the ANC. [Interjections.] That was constructive criticism that you gave. I'm just inviting you. We have forms which you can just fill in, and then join the ANC. Thank you. [Interjections.] [Applause.]

The MINISTER OF PUBLIC WORKS / TH / END OF TAKE

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 202

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Mr M P JACOBS

The MINISTER OF PUBLIC WORKS: Chairperson, I just quickly want to say to hon De Beer that we need to separate the job opportunities created by the Expanded Public Works Programme, EPWP, which are mainly short term, from the real fulltime jobs. It might be important to make that distinction.

Thank you to my colleague, hon Carelse. I wish all your colleagues in the DA can commend where they see progress and be hard where there is no progress, when we deal with those issues. I wish we could have that spirit instead of just rubbishing everything.

Hon Jacobs, you have indeed raised very critical issues under the Presidential Infrastructure Co-ordinating Commission, PICC, led by Ministers Nkwinti and Patel and being mandated by the President. We, together with Basic Education, are putting our heads together to deal with the issue of eradicating the mud schools. It might be important that all Members of Parliament keep a watch on that - an oversight.

On the second issue about the properties which are lost or stolen, it is correct. It is funny that we talk about a building, something that one cannot move, that is stolen. We will continue the interaction with the standing committee so that you understand what the complications are. We will make an announcement on how we want to deal with the stolen properties. We are going to come down heavily. We are just putting our strategy properly in place.

Hon Grunewald, let me just give you this quotation. President Mbeki, in 1998 in his Two Nation speech said and I quote:

A major component part of the issue of reconciliation and nation-building is defined and derives from the material conditions in our society, which have divided our country into two nations.

This is what Comrade Jacobs was saying. One is black and the other white. One of these nations is white and relatively prosperous, regardless of the gender and geographical dispersal. It has readily access to developed economic, physical, educational, communication and other infrastructure. The second one and the larger nation of South Africa is black and poor, with the worst affected being women in the rural areas, the black rural population, in general, and the disabled. The nation lives under conditions of a grossly underdeveloped economic, physical, educational, communication and other infrastructure.

The reality of the two nations underwritten by the perpetuation of racial gender and special disparities born of a very long period of colonial and apartheid white minority domination constitute the material base which re-enforces the notion that indeed, we are not one nation but two. Neither are we becoming one nation.

Consequently, also the objective of the national reconciliation is not being realised. Don't expect that what is called a very long period of colonial and apartheid domination will be rubbed away within a few years. But equally, as a beneficiary of apartheid, own up to the problems of South Africa so that we address them together. The first step to address any problem is to acknowledge that there is a problem. To keep on blaming other people is not going to help us. Thank you.

The MINISTER OF LABOUR

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The MINISTER OF PUBLIC WORKS

The MINISTER OF LABOUR: Chairperson, I want to thank the hon chairperson of the select committee for the comments that she has made. I also want to assure her that we are in the process of transforming the sheltered employment factories. I believe that Parliament is also going to finalise the Employment Services Bill as soon as possible. That will give us certain powers in terms of allocating some funding, so that we can absorb more people in that particular area.

I also want to thank the hon Mabija. I want to assure her that as the department, we have agreed that labour centres will continue with the "jobs first" and job summits so that our people on the ground can have an understanding of how they can access certain services.

Hon De Beer, thank you very much for your comments as well. Also on the issue of the inspectors, when it comes to the tools of trades, the director-general, DG, has visited all provinces and there were concerns that were raised and the DG is dealing with those particular issues.

I also want to share the information that we are working together with the Department of Rural Development and Land Reform, the Department of Health, the Department of Mineral Resources and also the Department of Agriculture, Fisheries and Forestry in dealing with some of the challenges, in particular, regarding the mining sector and agricultural sector.

Secondly, we have tabled the report for Bureau for Food and Agriculture to the National Economic Development and Labour Council, Nedlac, so that they can discuss the challenges that were raised by the farmworkers and so that we can also review some other policies.

Let me come to hon Groenewald. With respect, I am going to leave a copy of my speech. I just want to appeal to the member that he must go through that speech, even if it takes him three months to understand it. I think he is suffering a little bit, probably as a slow thinker or as a person who is very slow to grab what other people are saying. So, I will give that opportunity to you.

Maybe the House Chair, Themba, can arrange a workshop for the hon member and the officials in the department, led by the DG, will be patient and take the member through until he understands the department.

On the issue of the deployment of cadres, I think we must not have an assumption that the members of the ANC don't have qualifications. Some of them do have qualifications and they acquired those skills outside of the country when they were in exile and some of them forced ... [Interjections.] I think you must better listen because you are raising these issues. Here in the Western Cape you pretend as if you don't do that.

An HON MEMBER: We don't.

If you don't do it, you were not supposed then to fire Dr Mgoqi who was the director-general in that particular province.

Lastly, I also want to remind the MEC here that when we were at De Doorns addressing the farm workers, he was not supposed to run off. I don't know why he was afraid to attend that particular session. Therefore, he must not come here and pretend as if we are doing nothing. Regarding the farmworkers, there are serious conditions in this particular province.

In terms of the employment equity, you must ask your director-general in the province why he is giving the report that is not exactly what you expected. That report of the employment equity of the Western Cape was submitted by the director-general of the province. I thank you. [Applause.]

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): Members, let me make one thing clear, we have clocks here in front. So, we don't need you to show us your watch. You can keep your watch and look at it yourself. We have clocks and table assistants here to guide us. If you have a problem, lower your hand. Don't show it to us who are sitting here. Thank you.

Mr H B GROENEWALD: Chairperson, on a point of order: The hon Minister was 10 minutes over her time. She did not respect this House in her opening remarks.

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): Hon Groenewald, if you have ... [Interjection.] Hon Groenewald, you are out of order. I think you are misleading this House.

Mr H B GROENEWALD: Chairperson, I am not misleading the House.

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): Hon member, you said that the Minister was 10 minutes over her time. You are misleading this House and I need you to apologise for misleading this House.

Mr H B GROENEWALD: Chairperson, I am not misleading this House. The hon Minister was about 10 minutes over her time in the opening address.

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): Hon Groenewald, that is the opening address. You are misleading the House. Hon Groenewald, there was a Chairperson sitting here and I think you should apologize for misleading the House.

Mr H B GROENEWALD: Chairperson, I am not misleading the House

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): You are.

Mr H B GROENEWALD: You said that there are clocks.

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): It is not true.

Mr H B GROENEWALD: Then you must stick to the time.

The TEMPORARY CHAIRPERSON OF THE NCOP: It is not true. I want you to apologize for misleading the House.

Mr H B GROENEWALD: Chairperson, I did not mislead the House.

The TEMPORARY CHAIRPERSON OF THE NCOP: You did. In that case, I will ask you to leave the House.

Mr H B GROENEWALD: Then I will leave the House.

The TEMPORARY CHAIRPERSON OF THE NCOP: Thank you. [Interjections.] Hon members, hon Minister Nxesi and Minister Oliphant, thank you very much for participating in this debate. Thank you for bringing your budget debate to the NCOP. On behalf of the presiding officers and the Chief Whip we want to thank you very much and wish you well with your future endeavours in your departments. We wish you all the best.

Debate concluded.

The MINISTER OF TRANSPORT (Mr B A D Martins) / Src / END OF TAKE

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The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS):

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS): Order! If you are leaving the chamber, please do it quietly.

The MINISTER OF TRANSPORT

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The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F ADAMS):

COLLECTIVE EFFORT TO MAKE SOUTH AFRICAN ROADS SAFER

(Statement by the Minister of Transport)

The MINISTER OF TRANSPORT: Hon Chairperson, esteemed hon members of the NCOP, distinguished guests, ladies and gentlemen, the Deputy Minister of Transport, Ms Sindisiwe Chikunga, and I, are indeed grateful for the opportunity you have afforded me to speak today in this Council, on this very important topic, namely, our collective responsibility and action to make South African roads safer.

It is a very unfortunate reality that road fatalities have become the major cause of unnatural death in the world today. In South Africa, approximately 40 people die each and every day due to road crashes, and this adds up to approximately 14 000 people dying annually. South Africa's mortality rate of 28 per 1 000 citizens dying as a result of road fatalities is regrettably amongst the highest in the world. Available data and evidence indicates that young people are the main victims of road fatalities. Road fatalities result in a huge socioeconomic cost, estimated at R306 billion per annum.

There are various contributory causes and factors behind this dire and grave reality. These include, amongst others, reckless and negligent human behaviour; defective motor vehicle conditions; and road and environmental conditions. Amongst the most prevalent human causes are alcohol abuse; pedestrian jaywalking on roads; passengers and drivers not using seat belts; excessive speed too high for circumstances - people driving at 80 to 120 kilometres per hour in 60 kilometres per hour traffic zones, and where people just disregard speed limits; dangerous overtaking, where motorist cannot see oncoming traffic and overtaking over solid barrier lines; and lastly but also of great concern, driver fatigue, where motorists and drivers do not stop regularly in order to refresh themselves.

Compliance with the law remains a huge challenge. In particular, we have noted that only 2% of backseat passengers utilise safety belts, compared to 60% of drivers and front seat passengers who comply with the requirement. With regard to motor vehicle factors, the main causes remain tyre bursts, faulty brakes and steering wheels. We would all recall the television images that we saw over the Easter and festive periods, where certain busses and motor vehicles were shown to be tied with pieces of wires and ropes.

There are many vehicles on our roads that are not in a fit and proper state to be on our roads, and these vehicles have, unfortunately, been issued with fraudulent roadworthy certificates, due to the activities and actions of corrupt officials at some, not all, of our testing stations. We have instructed law enforcement agencies to utilise the full might of the law to address this plague of corruption, which results in crashes and fatalities in many instances. There are also other causes that are related to road and environmental conditions. These include the poor condition of road surfaces in a number of provinces and areas; the disregard by motorists of dangerous hair pin bends; and inclement weather conditions that lead to poor visibility.

Human factors contributed 82,8% to fatal crashes in 2009 and 84,9% in 2010. Defective vehicles contributed 9,13% in 2009 and 5,79% in 2010. Road and environmental factors were lower at 8,2% in 2009 and 9,3% in 2010. Available statistics and data reveal that passengers and pedestrians are, unfortunately, the main victims of road fatalities. In 2009, 36% of the people who died were passengers, followed by 34% who were pedestrians and 30% who were drivers. In 2010, passengers accounted for 38% while the number of pedestrians and drivers stood at 33% and 29%, respectively.

The success of the enforcement measures on the major national and provincial roads indicates that greater attention should now be given to secondary routes in townships, villages and suburbs in all our provinces. This process has indeed started. We are in vibrant communication and there are joint programmes carried out at the national level with the support of all our nine provinces. The analysis of the data, road safety campaigns and trends will further guide the Department of Transport as we review current road safety strategies. We have year-long programmes, throughout the year and not only over the Easter and festive periods, where we critically look at our campaigns, what were the successes and failures, and what do we need to do in order to mitigate those failures; and come up with more vibrant strategies that find accord with the general population of this country.

The Department of Transport continues to regard road safety as one of its main programmes. The urgent drive to reduce road fatalities by half in 2020 is consistent with the decision of the United Nations General Assembly, which declared the period 2011 to 2020 as the Decade for Road Safety. All member countries of the United Nations are united in achieving this common worldwide goal.

The department mainly carries out its road safety function through its agencies, namely, the Road Accident Fund, the Road Traffic Management Corporation, the Road Traffic Infringement Agency and the Cross-Border Road Transport Agency. These are the main implementation agencies of the Department of Transport on road safety issues. The SA National Roads Agency Limited, Sanral, also plays a significant role by including safety measures when constructing new roads or rehabilitating existing ones. Sanral's interventions include constructing pedestrian bridges and speed calming measures in densely populated areas, where the national road network passes through communities.

Provinces and municipalities also implement safety programmes and measures in conjunction with the national Department of Transport. Our national, provincial and local government strategies include more stringent law enforcement; public education and awareness campaigns; and direct support to vulnerable sectors of society like indigent communities and learners who have to cross busy roads on their way to and from schools. We are presently improving co-ordination between the different spheres of government in order to achieve our common objectives. The causes of road fatalities are many. The level of our success in reducing road fatalities will depend on the role played by all stakeholders and communities, hence we will continue with the public education and awareness programmes and campaigns, while at the same time, strengthening law enforcement measures.

In conclusion, I wish to call upon all South Africans to join hands with the Department of Transport and the Departments of Transport in the nine provinces, as we continue with our endeavours to reduce road fatalities. Making our roads safe is the responsibility of all of us. Let us spread the message: "Get there, no regrets". Thank you very much, Chair. [Applause.]

Mr M J R DE VILLIERS / KC//A N N(ed)/ END OF TAKE

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The MINISTER OF TRANSPORT

Mr M J R DE VILLIERS: Chairperson, I just want to draw your attention to Rule 52: Acting for absent member. It states:

If the member in charge of a motion or an order of the day is absent from the Council, another member authorized by the absent member may take charge of the motion or order.

Hon Groenewald has appointed me to take his position. Thank you.

The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F Adams): Have you communicated this with the Table staff members? Let me find out. Hon de Villiers, I do understand, but hon Groenewald was not absent from the House. He was here and I have ordered him out of the House because of his behaviour. Rule 37 (2) says:

A member ordered to leave the Chamber may not participate in any parliamentary activities during that day.

Hon Groenewald was not absent, he was here. [Applause.]

Mr M W MAKHUBELA

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The TEMPORARY CHAIRPERSON OF THE NCOP (Mr F Adams)

Xitsonga:

Nkul M W MAKHUBELA: Mutshamaxitulu wa siku ra namuntlha, Holobye Martin na Vaholobye lava nga kona laha ka Yindlu ya NCOP, ndzi twa ndzi tsakile ngopfu ku va ndzi ta vulavula eka njhekajekisano lowu.

Ku na ntlimbano lowukulu emapatwini hikokwalaho ka tilori letikulu leti sivelaka nkhuluko wa mimovha emapatwini ya hina. Leswi swi vangiwa hi nkayivelo wa timali etikweni ra hina. Hi 2009 nkayivelo lowu a wu ri eka R34 wa mabiliyini kambe sweswi wu tlakukile ku fika eka R1,3 wa mathiriliyoni. Leswi swi endla leswaku hi nga koti ku famba hi ku rhula emapatwini ya hina.

Hina va Cope hi vula leswaku Transnet a yi ngheneleli yi pfuneta ku rhwala tinhundzu hi switimela ku hunguta ntlimbano emapatwini.

Holobye Martin u vulavurile hi mathekisi na mabazi leswi fambaka emapatwini ya hina swi nga lulamelanga. Wolowo i ntiyiso lowukulu, Holobye. Xana ndzawulo yi endla yini hi nhlayo leya 14 000 ya vanhu lava faka lembe na lembe hikokwalaho ka tinghozi ta le mapatwini? Mi vurile leswaku byala byi na xiave eka tinghozi ta le mapatwini ngopfungopfu eka vana lavatsongo. Mi endla yini ku ponisa vana va hina? Vana lava hi vona mfumo wa mundzuku.

Afrika-Dzonga ri swi kotile ku hunguta mpimo wa madzahelo ya vanhu hi ku endla Nawu wo lawula madzahelo. Hikokwalaho ka yini mi nga endli tano na le ka byala? Tanani na Nawu lowu nga ta endla leswaku vana va hina va hunguta ku nwa va karhi va chayela.

Mathekisi lama fambaka emapatwini ma rhwala ku hundza mpimo. Cope yi na mavonele ya leswaku mathekisi ya vekeriwa "barcodes" [mimfungho] leyi kombaka leswaku thekisi leri ri suka kwihi naswona ri kongoma kwihi. Nakambe a ma vi na mafambelo lamanene emapatwini. Leswi swi nga hi olovela.

Rivilo emapatwini ri nga nyikiwi vito ntsena, munhu u fanele ku languta loko swi fanerile leswaku a chayela hi rivilo ra le henhla kumbe ra le hansi. U fanele ku languta leswaku patu leri a ri tirhisaka ri lulamerile ku famba hi rivilo leri a fambaka rona ke. Loko ku na mpfula u fanele ku languta leswaku patu a ri rheti ke. Ku fanele ku landzeleriwa rivilo leri kombisiweke eka mfungho.

Ndzi ta eka mhaka ya swihahampfhuka. Nhlayo ya Swihahampfhuka yi fanele yi engeteriwa kambe tihakelo ta swona ti va ehansi leswaku vanhu va kota ku ti fikelela. Vanhu vo tala va ta famba hi swona. Hi ndlela leyi ntlimbano wa mimovha emapatwini ya hina wu ta hunguteka. Hi mikarhi ya Khisimusi ku va na ntlimbano swinene emapatwini.

Inkomu Holobye Martin na Xandla xa Holobye. [Va phokotela.]

Mr T L MAKUNYANE /Arnold / GC / END OF TAKE

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Mr M W MAKHUBELA

Mr T L MAKUNYANE: Hon Chair, hon Minister and hon colleagues, it's an honour and a privilege to be afforded the opportunity to talk about this important subject. Firstly, I wish to welcome the statement of the Minister on the departmental programmes of action on road safety. We realise that the department has long started with the implementation of the programme of the decade of action for road safety. This included, among others, the legislative interventions regarding a number of issues, including drinking and driving, vehicle road worthiness, helmets and seat belt, better roads infrastructure, improved law enforcement, road safety education and awareness, and road safety management in general.

We appreciate all the work being done in this aspect of road safety. We have also noted the improvement in the compilation of road accident statistics, especially its disaggregation by province and vehicle types and so on. This will better inform and help refine law enforcement, legislative intervention, education advocacy and awareness campaigns. While it is also good to learn from the work of the World Health Organisation, WHO, and other countries, it is also important, specifically, to contextualise it in South Africa's unique history and circumstances.

Our approach also needs to be multidisciplinary and holistic. Among other issues that impact on road safety are the following:

Firstly, the migrant labour system and the history of influx control in our country has created a problem that the vast proportion of the urban workforce is made up of migrants who have to go home to their rural hinterland every weekend, especially at month-ends. This results in a vast number of people travelling on the road at the same time every weekend and month-end, and thus vastly increasing the chances of road accidents.

Secondly, the exponential increase in the number of private vehicles, coupled with an adequate public transport systems. Prior to 2010, we saw the atrocious congestion on roads, especially in Gauteng, which necessitated vast investment in road infrastructure. For now, this has resulted in some improvements in the situation. However, if we do not invest in a safe reliable and affordable public transport system, in 10 years time, we are going to need to make another humongous investment in the road infrastructure because by then the number of private vehicles will have doubled if not tripled. In this context, I wish to remind the Minister about the need for the Moloto rail in Mpumalanga. The feasibility study was done in 2008.

Another factor here is the persistence of the apartheid spatial arrangements where you have dormitory townships located at huge distances from markets and centres of economic activity. This means that workers have to commute long distances everyday between the townships and their places of work. This multiplies the chances of road accidents many times over.

Another uniquely South African phenomenon is the aspect of baaskap, which translates into bulling on the road. An important aspect of road safety is the attitude of the driver, especially mutual respect and courtesy. In a situation where baaskap still prevails, some drivers think they own the road and that they can treat other road users with contempt. This also applies, of course, to many taxi drivers who seem to think that they always have the right of way.

Although these issues do not fall directly within the Minister's jurisdiction, they have to be addressed collectively if we are to address road safety in its totality. We need to see road traffic safety in the broader context as part of our quest to transform our society into a united, nonracial, nonsexist and democratic South Africa, with mutual respect and heightened levels of road safety awareness.

Lastly, we wish to thank the Minister again, for his committed leadership of the department, especially in the campaign of the decade of action for road safety. Thank you. [Applause.]

Mr M P SIBANDE / Mpho/.../TM / END OF TAKE

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Mr T L MAKUNYANE

South African Maritime and Aeronautical Search and Rescue Amendment Bill

(Consideration of Bill and Report of Select Committee on Public Services thereon)

Mr M P SIBANDE: Hon Chairperson, hon Ministers, hon Deputy Ministers, and hon Minister and members, the International Maritime, IMO, organisation was established under the auspices of the United Nations in Geneva on the 17 March 1948 and met for the first time in January 1959. It is a specialised agency of the United Nations that is responsible for measures to improve safety and security of international shipping and to protect the marine environment from pollution by ships. The IMO and the International Civic Aviation Organisation, ICAO, provide guidelines for a common aviation and maritime approach to search and rescue service.

The guideline seeks to assist member states in meeting their own search and rescue needs. But they also assist in meeting the national obligations under the Convention on International Civil Aviation, the International Convention on Maritime Search and Rescue and International Convention for Safety of Life at Sea.

The Southern African community is an active member of this International Aviation and Maritime Community. As a matter of interest the declaration and treaty establishing the Sothern African Development Community, SADC, was signed at the summit of heads Of state on the 17 August 1992 in Windhoek, Namibia. Regional protocol establishes transport, communications and meteorology systems which provide efficient, cost–effective and fully integrated infrastructure and operations in the region.

The South African Search and Rescue, Sasar, organisation has been in existence since 1957. It was formalised through the enactment of the South African Maritime and Aeronautical Search and Rescue Act, 2002. The Act gave the organisation a statuary mandate to co-ordinate all SAR activities within South Africa's area of responsibility or Search and Rescue Region, SRR.

South Africa is responsible for a huge search and rescue area. Our search and rescue region represents approximately 10% of the globe and is about 28,5 million square kilometres in total. To manage this vast area, the South African area is divided into two SRRs namely, the Aeronautical and, MSRR.

The Aeronautical Search and Rescue Regions cover South Africa, Namibia, Swaziland, Lesotho and associated flight information regions. The MSRR stretches approximately halfway between South Africa and South America on the western side and approximately halfway between South Africa and Australia on the eastern side.

The Sasar was established by the South African Maritime and Aeronautical Search and Rescue Act No.44 of 2002 as an authority responsible for the co-ordination of Maritime and Aeronautical Search and Rescue Regions.

The Act provides for the requisite legal framework for the provision of a search and rescue service in South Africa. The Act also incorporates the International Convention on Maritime Search and Rescue, 1979 and Annex 12 to the Convention on International Civic Aviation, 1944.

With regard to the objective of the Bill, the ANC's vision for South Africa's transport is reflected in the Transport White Paper of 1996 as being to support government strategies for economic and social development whilst being environmentally and economically sustainable.

These maritime policy imperatives and goals are articulated as developing maritime awareness, assisting in the creation and fostering of an economic environment for the Maritime Transport Industry which will allow it to compete with other nations, contributing to the release of the full potential of the maritime industry in South Africa and the modernisation of South Africa's shipping administration.

With 12 000 ships visiting South African ports per annum, carrying 244 000 seafarers on board and 200 million tons of freight - imports and exports - and R37 billion per annum spent on maritime transport, South Africa's strategic maritime response refers to: International dynamics; regional development; and national maritime development strategy and planning.

The ANC-led government's strategic global maritime interest and international obligations, therefore, includes providing safety navigation and ships, ensuring freedom of the seas and security of shipping supply chains, as well as the protection of the marine environment.

The Bill seeks to give legal effect to structural changes introduced to the South African Search and Rescue Organisation which is tasked with carrying out rescue of aircraft and vessel accidents.

The Bill will line up South Africa's rescue activities with that of the International Maritime Search and Rescue Convention of 1979 and streamline processes, roles and responsibilities as prescribed during the execution of maritime and aeronautical rescue operations.

It is aimed at an improved response mechanism and turnaround time. It also gives a right to the delegation of powers and duties bestowed on the Minister of Transport to the South African Maritime and Aeronautical Search and Rescue office-bearers and department officials. It also further widens the scope of search and rescue regulations and increases the number of reporting centres where aircraft or vessels in distress can be reported. Furthermore owners of aerodromes, airfields, heliports and helistops will be expected to draw up emergency plans and place them within the Aeronautical Rescue Co-ordination Centres.

I would like to thank the co-operation of the Minister, Deputy Minister, Director General and his team and the agencies involved. This Bill could not be passed without the hard work of the members of the committee, both from the ruling party and the opposition parties and the policy leadership of the ANC.

I move that we adopt the report and the Bill. Thank you.[Applause.]

Debate concluded.

The CHAIRPERSON OF THE NCOP: Hon members, I will suspend the voting on this Bill. I will now move to the next Order of the Day.

Fourth Order / /sam / END OF TAKE

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Mr M P SIBANDE

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Mr M P SIBANDE

APPROPRIATION BILL

Debate on Vote No 35 – Tourism:

The MINISTER OF TOURISM: Chairperson, following our recent announcement of the impressive 2012 tourist arrival statistics with President Jacob Zuma and the subsequent spectacular Indaba trade show, there can be no doubt that tourism has carved out its rightful place in the market. It is indeed one of the fastest growing sectors in our country and the world.

In 2012, South Africa continued to entrench its status as a major international tourist and business events destination, with our tourist arrivals growing an impressive 10,2% in the previous year. We received 9,2 million international tourists in 2012, compared to the 8,3 million tourists who travelled to our country in 2011. South Africa's tourist growth rate in 2012 was more than double the rate of average global tourist growth.

A few years ago, we took a strategic decision to invest in the emerging markets on our continent, in South America and in Asia. We are experiencing astounding results from these markets. Arrivals from our continent have maintained the solid growth path to which we have become accustomed, with growth of 8,5%. We will also invest R218 million over a three-year period to grow our share of this market even further. In addition, we will be opening offices in Nigeria, Angola and Kenya this financial year, and we will expand our footprint to Ghana, Tanzania and Uganda through our new hub strategy. From our Brics partner countries, we have also seen phenomenal growth. With the exceptional growth recorded from Brazil, we have decided to open a South African tourism office in that country during this financial year. Added to that, we are currently negotiating a joint Brics tourism memorandum of understanding.

Domestic tourism remains the backbone of our industry. We are therefore determined to promote it, to enhance it, and to implement strategies to stimulate its growth. At any given time, 75% of all tourists in our country are South Africans, with domestic tourists having contributed R101 billion to our economy in 2011. We are working hard to ensure that travel and tourism becomes attainable for ordinary South Africans, and we are thinking innovatively of new ways to ensure that more South African families have access to the places that we have inherited as a nation.

To truly deliver on the promise of tourism, we have to create the conditions that render the tourism experience and the treasures of our country accessible but also affordable to a much greater share of our population. To this end, in partnership with the Industrial Development Corporation, we have just commissioned an audit of underutilised state assets and properties that could be developed into tourist attractions and facilities. State resources cannot stand vacant whilst there is a cropped-up demand in certain market segments.

Pursuant to this, we have also commissioned a feasibility study for a pilot budget resort chain, which could, in some or other ways, be de-risked through partnership approaches. That will focus on the income group of people with an income of R5 000 and less a month. The time has come to remove the final barriers to fully unlock our country's tourism treasures but also the intrinsic value of travel for all our people, thereby bolstering our contribution to job creation and poverty alleviation.

The department is also in its first year of implementing regional tourism support packages. We have compiled provincial profiles to better understand the status quo of tourism in all nine of our provinces. Strategic and critical areas for tourism development were identified for support. This support ranges from tourism infrastructure development and nodal and spatial development zones to skills development programmes, service excellence awareness and training, tourism routes development, rural tourism programmes, and strategic niche tourism market development.

Tourism is a labour-intensive sector with a supply chain that cascades deep into our national economy and also across all communities. It is also positioned as a priority sector in our government's planning and policy frameworks. During the past financial year, our department has yet again exceeded its Expanded Public Works Programme, EPWP, target for full-time equivalent jobs. Training and skills development is, of course, critical for our sector.

Allow me, therefore, to highlight some of our EPWP programmes in this regard. In the 2012-13 financial year, 500 young persons have graduated as chefs, and 120 have already been placed with established hospitality institutes, such as hotels, bed and breakfast establishments and restaurants, as part of our National Youth Chefs Training Programme. Altogether, 300 of the mentioned 500 have been enrolled for second-level training, which is equivalent to NQF level 5, a National Diploma. Owing to the success of the programme, another 500 newcomers have been enrolled in the programme for this financial year.

This sector is also a fertile breeding ground for entrepreneurs and for small, medium and micro enterprises, SMMEs. The Tourism Enterprise Partnership, TEP, was successful in achieving but also exceeding its performance indicators over the past year. For 2012, TEP supported just over 5 000 jobs created by SMMEs, which delivered an increased turnover of R785 million. The department will continue to fund TEP to support SMME development in this financial year.

We understand that transformation in our sector is critically important. We have therefore commissioned the Black Economic Empowerment, BEE, Charter Council to closely monitor compliance with relevant legislation but also to drive initiatives to ensure that effective transformation of the sector leads to meaningful growth and equal distribution of the benefits that tourism brings.

In conclusion, as a tourism industry, we will remain committed to working together to grow tourism in our country with the support of all South Africans, all of whom have the power to be important tourism ambassadors for our country and for our sector. I would like to take a moment to thank our Deputy Minister, who will participate a little bit later in the debate, for her commitment and her support. Thank you also to the director-general and his capable team for bringing our department this far in a very short period of time. They are in the officials' benches over there.

I would also like to extend a special thanks to the board of South African Tourism but the executive team under the leadership of the chief executive officer for their excellent work and the support rendered to the department to achieve our targets. In addition, I would like to express our gratitude towards the private sector for the constructive relationship that we enjoy. To the chairperson and to the members of the Select Committee, we value and we appreciate the good working relationship that we have with you, and we look forward to working with you on the Tourism Bill, which the National Council of Provinces is currently considering. Thank you. [Applause.]

Mr F ADAMS / Kn//Mia / END OF TAKE

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The MINISTER OF TOURISM

The MINISTER OF TOURISM

Mr F ADAMS: Hon Chairperson, hon Minister van Schalkwyk, Deputy Minister Xasa, director-general, all staff of the Department of Tourism, my hon Members of the NCOP, and ladies and gentlemen, as the ANC, we have said that tourism serves as one of the most strategic sectors with immense potential to bring about economic growth and employment creation to our people.

We have indicated that because this department serves as a catalyst for translating the life experiences of our people and beautiful natural resources of our land to one of the most important economic vehicles for our people. It is for this reason that the ANC-led government has made a commitment to increase tourism contribution, both directly and indirectly to the economy, from the 2009 baseline of R189,4 billion, 7,9% of gross domestic product, the GDP, to R499 billion by 2020.

We are indeed humbled by the fact that a number of foreign visitors arrivals, to see the beautiful shores of our nation and share the life experiences of our people, has increased from just more than 3 million in 1993 to almost 10 million in 2009. Today we convene to debate the policy debate on tourism, when in April, President Jacob Zuma released the annual tourism statistics, which showed a strong growth in the number of tourists to South Africa increasing by almost 10%.

These figures clearly demonstrate that our spectacular national scenery, friendly people, and world-class infrastructures, make our country one of the most desired destinations in the world. The President said that God lives in the Western Cape, but I want to say yes, surely God lives in the Western Cape, but the Western Cape government is the wrong one. That is why, sometimes we think that because of the weather, there is something going on.

The fact that South Africa's tourism growth rate is more than doubled that of the global average re-affirms the fact that our country remains an attractive, competitive, and safe and sought after tourism destination. As the ANC, we take great pride that this sector continues to grow and serves as a flagship of our national agenda, which is to change the lives of our people and bring deployment, development and job creation to the areas where they live.

Although the tourism sectors was hard hit by the global crisis, we are humbled by the fact that our nation continues to attract the interest of the global community; and that many people across the globe continue to list South Africa as the gateway to Africa. It is for this reason that, as the ANC, we said that we would continue to put this sector at the epicentre of our national interventions and priorities.

We are indeed proud that the International Tourism Growth Programme of the department continues to develop and support South Africa's tourism potential throughout the various regions of the world. We have also noted that this programme has increased by a significant 20,1% from R41,8 million in 2012-13 to R50,2 million in 2013-14. We are aware that these are resources that the department continue to use with utmost prudence and national pride as they preach the message of great optimism and renewed hope of our nation.

It is for this reason that the global competitiveness study and world economic forum travel and tourism competitiveness report place South Africa's tourism position and performance to those areas of key competitive such as Australia, United States, Kenya, Thailand and Brazil. It is this accolade that makes this programme one of the most important programmes of the department.

It is for this programme that we take great pride that today South Africa remains one of the most popular destinations for business travellers. This programme continues to spread the message about our first world infrastructure, which makes our country an ideal location for international congresses and conventions. It continues to carry the national flag of our infrastructure of over 1000 world-class conference and exhibition venues.

Ranging from intimate bush hideaways to large-scale high-tech convention centres, it remains the largest attraction in the African continent. Through this programme, we continue to show the rest of the world our diverse cultural heritage and historical sites; distinguish our country from the rest of the world; and continue to serve as one of the most important strategic leverages for growth that will have a direct impact on the lives of South African people.

We are happy that the department supports the significant 981 rural enterprises out of the targeted 530, which is an achievement and that places the department ahead of its target by almost 45%. The department has set a target of 20 black small, medium and micro enterprises, SMMEs, to be supported on a mentorship programme. However, the department has exceeded this target by taking 22 SMMEs through the mentorship programme.

I know when the hon Sinclair comes here to debate, he will say that we are praising like the iimbongi. It is nice to be an imbongi and a praise singer when work is done and not to be a singer and an imbongi when the court does the work for you. In actual fact, it is good when the government department that has been implemented by this ANC government, leads the programme and does the work.

The programmes for youth development are all on track as some of the targets have been met. Finally, the target set for the roll-out of the national tourism sector strategy was at 15 whereas 19 district municipalities were in workshops.

Talking about the Western Cape, at one stage we went to a country and the ambassador said to us, as a committee, that our prime minister was there not long ago. Everybody was shocked. We asked ourselves who that prime minister was? He said it was a lady - our minister. He then said that it was Mrs Zille. We said no, but she is not the prime minister. She did not go to market the Western Cape, but to market South Africa. That is double standards.

However, when she left, she said to that head of state, please come to the Western Cape. He then asked where the Western Cape was. It it in another country outside of South Africa, because the whole time in our talks you were talking about South Africa, but now when you are leaving, you say I should please come to the Western Cape? This is the only province where you have a member of the executive council, MEC, for international relations, which is not even a schedule 4 function. Therefore, hon member, get your acts straight.

We want to extend our profound appreciation to the department in giving meaning to the priorities identified by the President in his state of the nation address; and aligning the department Budget Vote with the new growth path and the National Development Plan. Through the Minister's vigilant leadership, this department has driven the tourism sector to be one of the most strategic departments in our national quest to fight poverty and create employment for our people.

We also want to thank, with our profound appreciation, Minister van Schalkwyk, Deputy Minister Xasa, the director-general and all the staff of the Department of Tourism - from the cleaner, sweeper and right up to the Minister, director-general and the Deputy Minister, because everybody is doing their part.

As the ANC, we support ... [Interjections.]

The CHAIRPERSON OF THE NCOP: Order, hon member! Is it a point of order?

Mr D V BLOEM: Chairperson, has the hon Freddy Adams become an imbongi or a praise singer? I am just asking.

The CHAIRPERSON OF THE NCOP: That is not a point of order.

Mr F ADAMS: As the ANC, we support this Budget Vote. I thank you. [Applause.]

The DEPUTY MINISTER OF TOURISM / LMM/.../TM / END OF TAKE

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 209

Mr F ADAMS

The DEPUTY MINISTER OF TOURISM: Hon Chairperson, hon members of this House, Minister Van Schalkwyk, the tourism team and team SA Tourism, one of the global heads of state who is an Ambassador of the United Nations World Tourism Organisation, President Jacob Zuma, announced our 2012 tourism statistics, which in itself is a signal of inspiration and leadership that boosts confidence of the industry and that of the communities, and also gives a global view of South Africa as a destination of choice, under leadership from the top level.

It is indeed a privilege to stand before this House amid South Africa's growing tourism success story. Our businesslike and modern tourism Indaba 2013 was very successful in pursuing South Africa's tourism business, strengthening partnerships and establishing new ones.

As a blueprint for South African development, the National Development Plan, NDP, recognises tourism as one of the main drivers of our country's economy and employment. We need to align the National Growth Path, and our National Tourism Sector Strategy, with the NDP, to meet the target of creating 11 million jobs by 2030,

and timelines that have been set. We, as the national Department of Tourism, continue to create a favourable environment for the private sector to invest into the economy.

As tourism is a people-intensive industry, education and training should be placed in the forefront of tourism development. Investment in the youth will result in a more sustainable and flexible workforce. A number of initiatives – adding to the ones that the Minister had spoken about earlier on – are being rolled out by the department, strictly focusing on skills development and training for the youth and women.

Building on our National Tourism Careers Expo developments over the years, the national Department of Tourism, Umalusi, and the Culture, Arts, Tourism, Hospitality, Sports Sector Education and Training Authority, Cathsseta, entered into a partnership to conduct an analysis and evaluation of the existing syllabi for Tourism, Hospitality and Consumer Studies subjects at various levels, aimed at establishing the value and quality standing of the intended syllabi for these subjects in the overall education and training terrain, as well as determining whether the existing syllabi are in line with industry needs.

The alignment of our tourism strategies and activities as government is a must. It gives me great pleasure to inform this House that our department launched a tourism capacity programme at the Local Government Tourism Conference which we hosted in February this year. This will ensure that tourism policies filter to all government levels seamlessly. We expect to see tourism as one of the key economic growth pillars for local municipalities.

We worked closely with the National Treasury and provincial departments to develop an improved budget structure for tourism, to ensure more appropriate budget allocations across all levels of government.

In this financial year, we will continue to expand the number and range of knowledge and information tools available on the Tourism Knowledge Portal, with specific focus on local government tourism capacity building. The tourism base needs to be expanded and diversified so as to create a distinct and unique image of the country's heritage, cultural resources and infrastructural development.

I am pleased to announce the following tourism infrastructure projects under planning in terms of our Expanded Public Works Programme. The Mahlathi tourism project in Limpopo; the Tisane Cultural Village in Limpopo; the Oaks Information Centre in Mpumalanga; the Makumbi Waterfall project in Limpopo; the upgrading of the Manyane Lodge in North West; the Middleburg Information Centre in Mpumalanga; the final completion of Platfontein Lodge in the Northern Cape; the six-day hiking trail from Port St Johns to Coffee Bay in the Eastern Cape; the Mathonsi Lodge in the Eastern Cape; the Muzi Pan Canoeing project in KwaZulu-Natal; the Lilani Hot Springs upgrade in KwaZulu-Natal; the Empyrean Hospitality Training Centre in the Free State; and the Kai Garib Caravan Park in the Northern Cape.

We are implementing the rural tourism strategy as a panacea for increasing the economic viability of marginalised areas, stimulating social regeneration and improving the living conditions of communities. An example that goes to the heart of rural nodes is the Maloti Drakensberg Route. This project demonstrates the importance of regional integration as we partner with our neighbour, Lesotho. This also talks to the government's outcome of creating a better Africa in a better world.

We are also encouraged by the G20 countries' recent recognition of tourism as a vehicle for job creation, economic growth and development, and its commitment to work towards developing travel facilitation initiatives in support of job creation, quality work and poverty reduction. In our African leg of the United Nations World Tourism Organisation – this is the commission for Africa – we have managed to influence the start of a debate on a tourism agenda for Africa. This will be part of our next session that will then filter into the United Nations General Assembly that is to take place in Zimbabwe and Zambia in August of this year.

We are busy preparing for our tourism month celebrations in September this year, with once again our focus being on the promotion of domestic tourism to address the challenges of seasonality and geographic spread. In this month, domestic travellers are encouraged to discover the hidden treasures of our country in those less visited areas, and most importantly, to do this in an environmentally responsible manner.

This year's theme for the event is; Water and Tourism, Protecting our Common Future. The North West Province has agreed to host this year's World Tourism Day celebrations which will take place on 27 September this year. I thank you, Chairperson.

Mrs B L ABRAHAMS /AZM MNGUNI//TH / END OF TAKE

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THE DEPUTY MINISTER OF TOURISM

Mrs B L ABRAHAMS: Hon Chairperson, I want to greet the hon Minister Van Schalkwyk, Deputy Minister, Tokozile Xasa, hon members, distinguished guests, ladies and gentlemen. Before I actually start with my speech, however, I want to respond to Mr Adams and say that, as South Africans, when we leave the country and go to other countries, we represent and promote South Africa because we live in South Africa. The hon Helen Zille lives in South Africa, she is a South African, and when she comes back, she needs to tell people where they are going to. We cannot say, Come and visit South Africa. Which is the better place to visit, then? Come to the Western Cape, and we will show you the rest of South Africa. Thank you. [Interjections.]

According to the Tourism Act of 1993, it is very clear that the department's mandate is to promote sustainable growth and development within the tourism sector. The National Development Plan, NDP, also states this clearly, envisaging South Africa as one of the main tourist destinations. What the NDP further states is to contribute to sustainable economic development to alleviate poverty. The NDP also states that partnerships need to be formed with both the private and public sectors, in line with creating the envisaged 11 million jobs by 2030. This would make many of our country's unemployed people ecstatic knowing that they will be employed in the near future.

What is interesting to note on the expenditure trend is that the department will focus on the Policy and Knowledge Services and Domestic Programmes. It is very important to market South Africa as one of the main tourist destinations.

I hope that the envisaged 16 373 fulltime jobs that would be created through the Expanded Public Works Programme, EPWP, implementation plan will be sustainable and not temporary, as most of the EPWP jobs are. Part of this programme will be on the Tourism Infrastructure Programme, which I would like to believe will be sustainable. Of concern, though, is that this programme was previously under Trade and Industry in support of small, medium and micro enterprises, SMMEs, and established businesses to promote economic development. Having this programme under the Extended Public Works Programme is a concern. We would not want all these envisaged jobs being created and at the end of the day, the same total of people will still be unemployed.

For South African Tourism, SAT, the total departmental allocation for the financial year 2013-14 is R829 973 million. Part of this will be used to increase domestic travellers and to provide quality assurance by having graded establishments. It is all well and good having this allocation, but, unfortunately, not enough marketing is done to promote and encourage locals to travel domestically instead of visiting other countries. The department needs to promote and establish affordable packages for South Africans to enjoy our country. It is a beautiful country.

I would like to share some recipes. Some are underdeveloped, some are working, and some are still trying to work. One such campaign was launched on 6 September 2011 at the famous Maropeng in my own province, Gauteng. This campaign was called, I'm a GeePee – AmaGeePee, which we use in Gauteng – which was supposed to allow people to acquire a GeePee loyalty card allowing them to explore and experience the wonders of Gauteng at discounted prices. This sounds very good, though not enough marketing is done in this regard. Many members here who are from Gauteng do not know about the I'm a GeePee. You should get the AmaGeePee card. It is excellent!

The chefs' programme is an excellent programme, from which 520 have graduated, as the Minister has stated. My concern, Minister, is that we need to place these graduates, as some of them will be unemployed after this programme.

Another winning recipe I would like to share is in the province we all commute to weekly – none other than the beautiful Western Cape province that is governed by the DA. A Monthly Industry Dashboard has been created by Cape Town Tourism to provide a snapshot of all the tourism performance that takes place in Cape Town. This has proven to be more effective than the quarterly figures. Some of the measures used along the key indicators are visitors arriving at Cape Town International Airport, occupancy of hotels and average room rate, etc. This is an excellent way of monitoring and improving the recipe.

In conclusion, I would like to quote part of what the hon Adams has said. Allow me to quote the hon President Jacob Zuma. The President said he was visiting Lake Victoria, where he remarked to a local man how beautiful Uganda was. The man said when God created the earth the last place He created was Uganda. President Zuma responded, saying, 'But do you know where God went to when he finished the job here?' He said, 'I don't know.' And he said, 'He went to Cape Town.' President Zuma could not tell exactly where in Cape Town, but suspected it must have been on the top of Table Mountain.

I suppose that is why Table Mountain is one of the Seven Wonders of the World – of course, I would like to conclude and say in the notorious Cape Town, which is governed by the DA. Thank you. [Interjections.] [Applause.]

Mr K A SINCLAIR /Robyn/ END OF TAKE

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Thursday, 23 May 2013 Take: 211

Mrs B L ABRAHAMS

Mr K A SINCLAIR: Hon Chairperson, we are living in very interesting times. Not long ago, people were still the suitcase carriers of leaders of the National Party. [Laughter.] Today they are izimbongi [poets] of the ANC. The hon Adams is a typical example of that. During these times, we also change names; so I hear they called the hon Adams as imbongi. His name is now imbongi for all this praise singing.

This department did well to increase the number of international tourist arrival in South Africa to almost 9,2 million in 2012. However, that's not enough. As a progressive critical society and loyal South Africans, we can never compliment a fish for swimming or a springbok for running. That is what they are supposed to do. We must still do better. With regard to growing the economy, this department must play a greater role in terms of addressing the ills of society and the triple challenges of poverty, unemployment and inequality.

The reality is that almost 90% of the international tourists just frequent the big five destinations, Gauteng, Cape Town, Durban, Sun City and Kruger National Park. The golden triangle of Johannesburg, Durban and Cape Town remains the big attraction for foreigners. However, given the international trend South Africa has diverse tourism packages to showcase. According to latest Financial Mail, domestic heritage and culture tourism strategies could mesh with a shift in focus among visitors from South Africa's established markets of the USA and Europe.

If we want tourism to be one of the germs of our developmental agenda, serious consideration must be given to this research. The Northern Cape, like other rural provinces, has what it takes. A lot of emphasis is already been placed on extreme sports and events. We can collectively be more innovative.

To this end, I want to submit two proposals. Firstly, government must invest drastically and more substantially into tourism. However, this is not only the responsibility of the Department of Tourism. Decent road infrastructure is essential to make areas like, for instance, the Drakensberg more accessible for your average middle class family.

At the moment, the neglect and lack of road maintenance has a hampering impact, specifically to the rural areas. More importantly, tourism must be instrumental in the new envisaged Special Economic Zones, as currently promoted and promulgated in all probability, by the Department of Trade and Industry. The same benefits that will accrue to investors in industry must also be applicable to tourism enterprises.

To this end, areas with potential, like the Gariep and Vanderkloof Dams, can be turned into Special Economic Zones with mutual benefit for the tourism industry. This requires a political will and direction, but will certainly break the current mould of the golden triangle.

Secondly and lastly, South Africans are very quick to explore the cathedrals and mosques of the rest of the world. However, the rural platteland have some of the most impressive churches and places of worship in the world. In Northern Cape, for instance, a rout showcasing the most impressive Dutch Reformed churches will certainly add a new type of tourist in the statistics. Each small town has one or two religious structures ... [Interjections.]

The CHAIRPERSON OF THE NCOP: Mr Sinclair, your time has expired, but complete that sentence.

Mr K A SINCLAIR: Thank you, hon Chairperson. The magnificent churches of Philipolis in Free State and Calvinia, Vosburg, Hanover and Colesberg in Northern Cape are just a few to come to mind.

In conclusion, South Africa is at the right time at the right place. Tourism will be the platform to showcase our country further. Let us use this opportunity. I thank you. [Applause.]

Cllr C NEETHLING / Mpho/ .../TM / END OF TAKE

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Mr K A SINCLAIR

Cllr C NEETHLING (Salga): Hon Chairperson and Deputy Chairperson of the NCOP, hon Minister, hon members and distinguished guests, we wish to begin by acknowledging the intense work of the national Department of Tourism and its vehicles.

It is pleasing to witness the rapid growth of our tourism sector and congratulate the department on the double-digit growth achievement. Indeed, South Africa has much splendour to offer to the world, and we are pleased at the extent of the world's appreciation of this competitive edge.

As we celebrate our double-digit growth and the significant growth attained over the last 20 years or so, we must also be mindful of the slow growth and stagnancy in domestic tourism. According to the SA Tourism, Sat, domestic indicators, domestic tourism grew by 3% in the fourth quarter of 2012, in comparison to 2011. However, the tourism incidence has remained constant at 6,9% which is a significant decline in comparison to the 7,8% in 2010. It would thus be imperative for the department to robustly tighten the belt in this area. It is also a concern that the major reason for domestic travel for holiday purposes remains minimal as opposed to visiting friends and family.

Furthermore, while tourism incidents are stagnant, there is a significant increase in spending. The latter might look good at face value; however it raises questions on affordability of tourism services for the domestic market.

We thus implore the department to look into involving municipalities, and investing in their capacity to assist in optimising the reach to the domestic market. After all, we are the sector that interfaces with communities more than any other.

We applaud the undertaking to conduct underutilised state-owned tourism infrastructure. We hope that this initiative will be implemented with a sustainability outlook. As the audit is conducted, we advise that the department looks into measures to have a sustainable inventory and monitoring mechanism for the said infrastructure, which can be centrally accessible to all municipalities and key stakeholders. We believe that the existence of such a tool would be an enabler to the envisaged partnership approaches.

Although not articulated to the detail, we would like to believe that municipal tourism practitioners and leaders will be direct beneficiaries of the skills development programmes expressed in the speech. If not, it will be critical for the department to address that. As we all know, municipalities are responsible for facilitating conducive business environments, including the tourism environment. Thus, for optimal municipal responses to the tourism sector as one of the key economic drivers, improving the capacity of municipal practitioners is critical.

We applaud the sector for its contribution to job creation. The achievements of the Tourism Enterprise Partnership, Tep, are notable. The skills development drive will indeed be of great value and add to the economy.

The House will note that the SA Local Government Association, Salga, has expressed its opinion on the Tourism Bill to the select portfolio committee, and is very expectant that the position of local government will be taken into serious consideration.

Ultimately, the sector needs to ensure that it is in no way alienating or overburdening municipalities as we remain committed to contributing to the improving socioeconomic environments through service delivery. We remain expectant that a concerted approach will be the order of the day.

We must consolidate the gains made in the last decade by addressing some of the fundamental constraints hampering local government in our quest to effect development, so that we may have a more stable, sound and equitable policy framework to deliver on the developmental mandate.

We are committed to working with the national Department of Tourism to ensure an integrated approach through service delivery at any angle, and that the developmental vision of local government is realised. We trust that the department will take these issues into account.

Lastly, I can always invite the hon Councillor Adams to George. It's the most beautiful place in South Africa that is part of the Garden Route and the Western Cape as well. Thank you. ]Applause.]

Mr D D GAMEDE / TH / END OF TAKE

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CLLR C NEETHLING

Mr D D GAMEDE: Chair and Acting Chief Whip, let me thank you for allowing me to slip out. I also apologise to the Minister that I went out as I had to do some interviews, but I cancelled them. We in the ANC do not pride ourselves by dealing too much with the media, but we deal with issues.

Chairperson and Minister, firstly, we support the budget. Secondly, well done with the indaba, it was well organised. Thirdly, as we speak, members of our committee are briefing provinces and are dealing with issues of the Tourism Bill for the whole of this week. Fourthly, we appreciate the work that is done by the South African Tourism, Sat, the grading council and not forgetting the Jazz Festival. We are happy that the relationship has remained very good especially after the employment of the Parliamentary Liaison Officer, PLO. Communication is flowing. Also, we congratulate the department for being one of the only two departments that employ people with disabilities. They have gone above the mark of more than 2%. [Applause.]

The New Growth Path has prioritised tourism as one of the six economic sectors with the potential to create new jobs. The National Tourism Blue Print sets bold targets for tourism growth with a target of 225 000 new jobs to be created and a contribution of R499 billion to the gross domestic products by 2020. These targets have since been aligned with the National Development Plan.

As one of the key economic drivers to reduce unemployment and poverty, the tourism sector provides opportunities for investment in infrastructure, skills development, jobs and ownership. Overtime an ever increasing number of destinations globally have opened up and invested in tourism development. The World Trade Organization's, WTO, figures furthermore indicate that South Africa welcome about 8,3 million international tourists or 25% of the year's tourists arrivals in Africa which earned our country 29% share of Africa's tourism earning.

Foreign tourists spent a total of R76,4 billion in South Africa last year which is 7,6% more than the total foreign direct investment spent in the country even in 2011. The magnificent growth in tourism figures is a positive outcome of the ANC-led transition to a democratic dispensation. The results clearly also demonstrate the effectiveness of South Africa's economic diplomacy underpinned by a sound foreign policy. The positive trend is continuing due to the ANC government's systematic investment in policy and strategy development as well as effective implementation.

There are certain challenges that we still face. It has been recognised that there is a shortage of small and micro enterprises in the industry to boost the process of job creation. The industry is however challenged by lack of funding for emerging tourism by the developmental finance institutions and the commercial banks with reasons varying between seasonality of the industry and the inability of the small, medium and micro enterprises, SMMEs, to provide collateral. The enterprises in rural areas are mostly affected with most of them struggling to even manage to be graded as they do not meet the grading criteria.

Other challenges for enterprise development relate to emerging entrepreneurs themselves who cannot package bankable business plans that can attract investment. We were proposing in the committee when the department was briefing us that at least it must play a certain role in trying to assist these prospective business people when doing some business plans although it is not their core function, but in one way or the other may help.

In other instances there is a lack of information at a local level about where aspiring entrepreneurs can access information about funding and other support packages. The councillor from the SA Local Government Association, Salga, has mentioned the importance of Salga. During our oversight we have noted that municipalities don't treat tourism as a main thing in the municipality. We have suggested that the department engage municipalities more on this more especially on the importance of tourism as the most driver of job creation.

In the medium and long-term there is a need to deal with a reality that the sector remains largely untransformed in respect to a range of the Broad-Based Black Economic Empowerment factors including ownership and management. Sector transformation remains a key on the agenda of an inclusive economic participation. In contributing to this goal the National Development Plan, NDP, calls for the focus to be on increasing compliance with the gazetted Tourism Charter through the promotion of the implementation of the charter, alignment of the preferential procurement policy framework and the Broad-Based Black Economic Empowerment and verification of compliance by tourism accredited agencies.

Most importantly, to transform this industry in a meaningful way we need to invest in equipping our people with skills and knowledge to manage tourism business enterprises. We must train and develop more black managers and owners of tourist establishment to make the industry more representative of the population. South Africa's success and that of the tourism sector will be determined by how the industry will respond to the need for transformation in the sector.

In conclusion, on domestic tourism we have said that the Short Left campaign was a huge success and now maybe you may come up with the long right campaign and see where we can go with it. The other form of tourism that we need to be spread around the country - some have been mentioned - include, sports, tourism, medical, conferencing, the liberation roots and cultural tourism. These are the key issues that we will need to strengthen. In short, Chairperson, on this note we support this budget with a big smile. [Applause.]

The MINISTER OF TOURISM / GC / END OF TAKE

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 214

"National Council of Provinces Main",Unrevised Hansard,28 Aug 2013,"Take 214 [National Council of Provinces Main].doc"

"National Council of Provinces Main",Unrevised Hansard,23 May 2013,"[Take-214] [National Council of Provinces Main][90P-5-085b][gs].doc"

Mr D D GAMEDE

The MINISTER OF TOURISM: Hon members who participated in the debate, I would like to thank you all for your contributions. What I would like to do is to deal with four issues. I know that quite a number of hon members referred to each one of these issues in their contributions

I want to deal with the issue of domestic tourism, our continent Africa, the potential on Africa and our relationship with our own continent. I would like to deal with, inter alia, the issue of recognising excellence in our industry, and also what is happening in the developing world and between all of us as partners in Brics.

The hon Cllr Neethling and quite a number of other hon members raised the issue of domestic tourism. We agree that we must do better as a country with regard to domestic tourism. That is why I announced at the indaba the audit by the IDC that I referred to, as one initiative. We believe that we need a number of initiatives to kick-start domestic tourism.

During tourism month in September, we will also announce a new face in the domestic marketing campaign. One of the hon members asked about packages. It is available as part of the Vaya Mzansi campaign on our website. We have a number of partners from the private sector, airlines, two operators, travel agents, and hotel groups. They are quite affordable and some of these packages can be bought at some of the departmental stores and changed at grocery stores. So, all the information is there and it is really quite accessible to people who would like to make use of that.

On our continent, colleagues, we are very aware that when people talk about Africa, they normally talk about the negative side of Africa - there is poverty, instability and civil war on the continent. However, there is another side of our continent that we must do much more to present to the world. That is the part of Africa that is democratising very quickly and stabilising.

In a recent report, the International Monetary Fund, IMF, highlighted the fact that seven of the 10 fastest growing economies in the world are now on the African continent. With that, comes policy framework; investment frameworks; people feel much safer to invest their money; and tourism grows. That is what will happen on our continent and we as a country, are the beneficiary of that.

We have this huge market right on our doorstep. People talk about China and India, very important markets to us. However, the middle class on our own continent is bigger than the middle class in India. We should focus much more on them. That is why in my initial contribution I referred to the campaign that we will roll out on the African continent and offices that we will open in key countries in this coming financial year.

That is also why at the indaba we announced that already, indaba is one of the three or four top trade shows in the world. However, we want to change it from a South African trade show to a Pan-African trade show. I know there are some people in our industry who feel threatened by it because they think there will be more competition.

Colleagues, as South Africans, we have never been afraid of competition. Actually, competition will bring out the best in our product owners. If there are good products in Kenya, it is good for Kenyans and for the African continent. However, it will force us to up our game. The result is that there will be more buyers at indaba because that will be the African show that buyers from all over the world come to. We will also benefit as a country and our own product owners will benefit from that.

In terms of recognising excellence, we decided that in our sector we must be able to build role-players to recognise people who do well and are leaders in our industry. That will illustrate to young people that this is an industry where one can have a wonderful career; where one can make money; and where you can build a business.

In September, we will, for the first time, award the national tourism award, the Lilizela Tourism Awards in Tshwane. They will cover categories from service excellence to sustainable tourism, to special awards that recognise individuals and companies that assist us in achieving the objectives that hon Adams referred to in our National Tourism Sector Strategy.

In terms of the developing world, colleagues, all or most of us in the developing world think of the Americans and people from Europe coming to us, when we talk of tourism. That is important because we want people from all over the world to come to us. We want to grow those markets. However, we should understand the potential of developing countries in developing into key markets for us.

If we look at the tourism flow between Brics countries, last year, they were 37% up on the previous year. That is massive growth. Although per capita the spend for some time will still be higher from the developed countries, the numbers will grow much quicker from the developing countries and over time in terms of spend, per capita of the developing countries will catch up quite fast. However, in 2015, just two years from now, just around the corner, for the first time ever, the outbound tourism from developing countries will be more than the outbound tourism from developed countries.

Chairperson, let me conclude with something that I think we should all understand about our industry. Our industry is an industry based on people, working with people but providing good service, excellent service. That is what makes our industry tick. All over the world, every morning, one in 11 people getting up to go to work, comes and work in our sector. Nine percent of global gross domestic product, GDP, is contributed by our sector. It is a key sector internationally and in our own country, more so.

However, all the changes that we will experience that will still be part of our lifetime, is just staggering. In a few years from now, five to six years, all of us will have personal digital identities. Our mobile devices will even be more important in our lives. On that mobile device will no longer be the visa that we will have on our passport, but it will now be on our mobile device, the M-Visa. That is what we will use when we travel.

Much more so than today, when people make a booking for a flight or when they check-in, they will do that with their mobile. If they are delayed, the mobile device will automatically rebook all connecting flights. When you arrive at the hotel, there will be no need to go to the check-in desk downstairs and stand in those frustrating queues, but you can go straight to your room. Your mobile device will unlock your room because the booking will be on your mobile device. If you are like some of us that grew up in the hotter and drier provinces here, you can set the air-conditioning in your room to 21 degree Celsius an hour before time. When you walk into your room, it will be nice and cool. That is what will happen in our industry, and all of us will still be part of those changes. Chairperson, thank you very much! [Applause.]

The CHAIRPERSON OF THE NCOP:

UNREVISED HANSARD

NATIONAL COUNCIL OF PROVINCES

Thursday, 23 May 2013 Take: 214

The MINISTER OF TOURISM

The CHAIRPERSON OF THE NCOP: Thank you, hon Minister and Deputy Minister, for the contribution in this debate. I suspended the vote on the previous Bill. Let us go back to it now.

I shall now put the question and the question is that the Bill be agreed to.

In accordance with Rule 63, I shall first allow political parties to make their declarations of vote if they so wish. Is there any political party that wishes to do so?

Hon MEMBERS: No!

The CHAIRPERSON OF THE NCOP: We shall now proceed to voting on the question. Members will either vote in favour, abstain or against. You can use your electronic voting. If you have a problem, raise your hand. We will take your manual voting. Voting has commenced.

Mr D V BLOEM: Chairperson, on a point of order: Is it parliamentary for the member to mistrust another member? I am always voting for hon Nesi and now this hon member is saying she doesn't trust me anymore. [Laughter.]

The CHAIRPERSON OF THE NCOP: You can sort that outside the Chamber. Hon members, have you all voted? Hon Neethling, remember that you are not voting.

IN FAVOUR: 31 members.

I therefore declare the Bill agreed to in terms of section 75 of the Constitution. [Applause.]

Debate concluded.

The Council adjourned at 18:11

A N N / END OF TAKE


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