Hansard: EPC: Debate on Vote No 27 – Communications
House: National Assembly
Date of Meeting: 16 Jul 2014
Summary
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Minutes
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 9
WEDNESDAY, 16 JULY 2014
PROCEEDINGS OF EXTENDED PUBLIC COMMITTEE – COMMITTEE ROOM E249
____________________
Members of the Extended Public Committee met in Committee Room E249 at 14:00.
The House Chairperson Ms A T Didiza, as Chairperson, took the Chair and requested members to observe a moment of silence for prayers or meditation.
The MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES
START OF DAY
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 9
APPROPRIATION BILL
Debate on Vote No 27 – Communications:
The MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES: Hon Chair, hon Ministers and Deputy Ministers, hon members of the House, leaders of the ICT sector and state-owned companies, and fellow South Africans, I am pleased to lead the policy debate for Budget Vote No 27 – Communications, which was introduced in Parliament in February this year.
After the renewal of the ANC government's mandate in the May 2014 elections, His Excellency President Jacob Zuma reorganised the state to implement policy more efficiently and faster, in order to achieve the National Development Plan outcomes we have set for ourselves in the next five years.
The newly formed Department of Telecommunications and Postal Services will draw on this budget until we conclude the new budget processes or the adjustments estimates. This transition will enable us to transform current government programmes so as to be in line with the new Medium-Term Expenditure Framework.
Last month, His Excellency President Zuma announced in his state of the nation address that in the next five years:
We will expand, modernise and increase the affordability of information and communications infrastructure and electronic communication services, including broadband and digital broadcasting.
This Budget Vote is significant, as we are a mere two days away from celebrating Mandela Day. Let us continue to honour the memory of our icon Mandela, so that the world will reverberate with the greatness of his humanity for centuries to come.
In 2009, via video link, Mandela informed the International Telecommunication Union, ITU, Telecom World that:
... information and communication technologies are the single most powerful tool we have for human progress ...
He implored the ITU to "support efforts to connect the world and bridge the digital divide".
His words continue to guide us today to "take action" and "inspire change", which is why on Friday we will devote 67 minutes, and more, to cleaning classrooms and bridging the digital divide by launching an ICT laboratory at the Mshadza Secondary School in White River, Mpumalanga. [Applause.]
Telecommunications revenues were a mere R2 billion before democracy. They grew to approximately R179 billion by 2011, and are expected to reach R187 billion by 2016.
The mobile sector was introduced just before 1994 with two operators. Through our regulatory and policy measures, including spectrum allocation and the raising of call termination rates, we supported the incubation and massive growth of these operators. In the last 10 years we have introduced two additional cellphone providers. It is in this vein that we should collectively continue to support new entrants to the market, as we strive to increase competition and decrease costs.
We present to you a Budget Vote signifying more focused attention on infrastructure roll-out; the creation and acceleration of the expansion of e-government services; the co-ordination and streamlining of public entities in the sector; and a reconfigured department, which will ensure policy and regulatory certainty in the ICT sector.
The rapid deployment of fast and affordable broadband infrastructure remains a powerful lever to create an internationally competitive knowledge economy, to improve productivity and expand access to new markets, and to bring about social development.
Currently the backbone of broadband infrastructure, which is fixed-line fibre, stretches to 170 000 km, linking cities and small towns. We will focus on closing the infrastructure gaps with respect to the urban and rural divide, and access networks which will facilitate fibre to the home.
We must move away from overreliance on mobile broadband, as it will not be sufficient for ensuring effective e-service delivery in schools, health facilities and other government institutions. Our national broadband policy, South Africa Connect, places the department in a position to co-ordinate and support the roll-out of broadband infrastructure and services across the country, to achieve a 100% broadband penetration by 2020.
In the current financial year R20 million has been allocated to the finalisation of the first phase of the broadband policy implementation plan. By the end of this month the business case that seeks funding to connect 580 clinics, 4 444 schools, 182 police stations, and 572 other government offices in the medium term will be finalised.
In fulfilling its co-ordinating role the department is engaging with industry to establish its broadband roll-out plans in order to avoid infrastructure duplication. There are multiple broadband initiatives by various spheres of government, state-owned entities and the private sector, which must be co-ordinated to maximise efficiency of investment.
As the chair of Strategic Integrated Project 15, we plan to use this platform to co-ordinate the role of public institutions in the roll-out of this infrastructure and these services. We will establish and operationalise a platform of engagement to facilitate the alignment of these plans.
The role of Sip 15 is to expand access to communications technology; aim to create new jobs; unlock business opportunities; transform the ICT sector landscape; and support our integration into African economies.
To this end, we will focus on local production of content and manufacturing; research and innovation; content and applications development; ICT skills and human resources development; funding for the roll-out of the infrastructure; co-ordination across government departments and the private sector; and broadcasting digital migration.
We recognise that government cannot achieve this alone. The National Broadband Advisory Council is a critical platform for engagement in order to forge partnerships between government, the private sector, academia and civil society. All role-players must align their plans to meet the South Africa Connect targets.
Duplication of public and private infrastructure poses a challenge, as it contributes to high deployment costs, which are ultimately passed on to consumers. To address these bottlenecks, we will seek to direct the Independent Communications Authority of South Africa to formulate regulations for the sharing of infrastructure and facilities. These regulations will relate to how the public networks can be offered on a common carrier basis so as to facilitate cost savings, the entry of many players, and the enhancement of competition.
Government is committed to the establishment of an open access regime that allows those without access to critical public input resources, like the spectrum, wayleaves, rights of way and high sites, to enter the market under the same conditions as those who own the infrastructure. To this end, by October this year the department will finalise a study on open access networks that will inform how critical resources can be leveraged to ensure a competitive and open market that will unleash competition to drive down the cost to communicate in South Africa.
We acknowledge the efforts of industry in reducing prepaid mobile costs, and the reduction in mobile termination rates. However, our high costs of communicating remain an impediment to ICT uptake and usage by the citizen, business and government. They contribute substantially to input costs, which discourages investment. We therefore appeal to the industry to continue on this path. Government seeks to establish an environment in which the cost to communicate will be affordable to all South Africans.
There are other problems in reducing the costs of communicating. Our Cost to Communicate Programme has four elements.
Firstly, the department and Icasa will conclude the broadband market value-chain study. The outcome of the study will be used to assist Icasa to develop regulations for broadband pricing.
Secondly, in the course of this financial year the department will undertake a national roaming study to determine cost implications, including discriminatory behaviour, particularly for new entrants and smaller operators.
Thirdly, by September this year I will direct Icasa to develop regulations on pricing transparency, to enable consumers to have a clear understanding of the true costs of the services they pay for. In this manner the true rate for a service will be disclosed upfront to enable consumers to exercise their choices.
Lastly, we intend to direct Icasa to develop regulations in respect of premium content. This aims to regulate how different broadcasters will access premium content for their services. This premium content relates to content such as sports rights, films and other content previously accessed through exclusive terms.
For us to have a sustainable and thriving sector, we need to ensure that there is a policy and regulatory environment that is conducive to the entrance and sustainability of new players in the market. It is in our national interest to grow the sector and promote competition in order to drive down costs and create more job opportunities.
There is no doubt that our digital migration process has faced many challenges. The June 2015 deadline looms before us and we dare not let our people down. I have taken the decision to move forward with the broadcasting digital migration programme, the BDM. By the end of this month, we intend to finalise and gazette the BDM policy, which has been the subject of public consultation.
Within the next three months we will designate the date for the start of the digital switch-on. This designation will allow the industry, manufacturers and television-owning households to prepare accordingly, in order to purchase and install set-top boxes that will make the digital switch-on possible.
The benefits of this will include facilitating the release of the spectrum, which we need so much; increasing the number of television channels available to the public; and stimulating local electronics production. The ring-fenced budget for broadband digital migration currently stands at R2,97 billion.
The postal sector can make a larger contribution to the GDP, as well as advance universal services and access goals. The current market structure, which consists of the reserved market – referring to packages of less than 1 kg – and the unreserved markets, is not adequately regulated. This results in challenges in enforcing policy and regulations.
There is an indication that the reserved market, which is currently a monopoly area for the SA Post Office, Sapo, is highly saturated with unlicensed or illegal operators. This practice needs urgent attention by the regulator, working closely with other law-enforcement agencies.
The ICT Policy Review process will also make recommendations by the end of this financial year in respect of the market structure and other regulatory measures.
A massive post office network has been rolled out, reaching more than 2 433 outlets, of which more than 1 700 are located in small towns or rural areas. This provides a multiplicity of services to the marginalised communities.
The SA Post Office is currently facing financial and sustainability challenges, with a number of its subsidiaries incurring financial losses, coupled with numerous labour strikes. I have directed Sapo to develop an overall turnaround strategy, which will be finalised by the end of November this year. The department is tasked with overseeing the development of this overall turnaround strategy.
It is critical that we use the Sapo infrastructure footprint to provide affordable financial services to the underserved and unbanked, especially in the rural areas. Therefore, the successful turnaround of Sapo is critical to the corporatisation of Postbank, taking into account that Sapo is the holding company. The department will facilitate the registration of Postbank as a company in terms of the Banks Act by December this year.
Government is moving towards rendering its services and giving information to the public using electronic means in order to optimise service delivery. Our objective is to provide and maintain transversal information systems and to develop e-government platforms for use by departments to deliver services online to citizens. In this regard, the department will co-ordinate work with other frontline departments to provide these services to the public. Through the SA State Information Technology Agency a significant number of government services will be available online over the next five years. Of course, the success of this is highly dependent on the massive deployment of e-skills. The Deputy Minister will deal with this.
In ensuring that our network infrastructure is safe, secure and robust and that individuals and businesses have confidence in using this ICT infrastructure, we will finalise the establishment of the Cybersecurity Hub by the end of this year. The function of the hub is to promote best practice and compliance with standards and procedures, and to develop related cybersecurity policies to assist both the public and private sectors.
In this financial year we will be taking initial steps to address our global competitiveness in this sector. In this regard, we will continue to collect and collate information on the ICT sector and report timeously on it.
We will also continue with our oversight over state-owned enterprises and companies, and the department itself. To this end we have developed a new memorandum of incorporation, which, for Sentech, the National Electronic Media Institute of South Africa, and Sapo, has already been concluded. We will also enter into performance agreements with the boards of all these entities.
As members may know, we will also continue with our international agenda, where we will be pushing the African agenda. We will ensure that we benefit from and use these international organisations for the development of our own people.
We will ensure that the current investigations which are being done by the Special Investigating Unit are concluded. Our task will be to take appropriate action, where necessary.
I would like to thank all members of the committees, particularly the chairpersons, who have been working very hard, for supporting and guiding us. I would also like to thank my Deputy Minister, Dr Hlengiwe Mkhize, who has been very hard at work, and the senior management and the director-general of the department, as well as all our staff, who work so tirelessly every day to make our work easier.
Let us join hands and move South Africa forward. [Applause.] Let's make the ICT sector affordable to all South Africans. I thank you very much. [Applause.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Thank you very much, hon Minister. To the members of the public who are guests and some of you who are stakeholders of the department, we apologise that some of you may not have had your seating arrangements sorted out, because the venue is quite small. I saw that one departmental official was trying to assist, and this is just to say to those who do not have seats that we do apologise indeed.
I also know that we are dealing with a very interesting matter, that of IT and other related telecommunications issues. I ask that members do not use their cellphones to take pictures. [Laughter.] There is only the one accredited photographer of Parliament who is allowed to do so.
Ms M T KUBAYI
The HOUSE CHAIRPERSON (Ms A T Didiza)
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 10
Ms M T KUBAYI: Hon House Chairperson, hon Minister Cwele, hon Minister Muthambi, hon Deputy Minister Mkhize and hon Deputy Minister Ndabeni-Abrahams, cochairperson Joyce Moloi-Moropa, hon members, stakeholders, and ladies and gentlemen, good afternoon. I want to mention our special guest today, a Grade 11 learner, Lonwabo Nkonzo, who has been with us during our public hearings to observe our process and he is also sitting with us today.
Let me take this opportunity to thank my cochairperson, Joyce Moloi-Moropa and all the members of the two portfolio committees for the collaboration and good work. We thank the committee support team for their dedication and support.
The Joint Portfolio Committee on Communications and Telecommunications and Postal Services held budget hearings with the intention to conduct oversight over the Department of Communications and its entities' budget, as appropriated by the National Treasury under Budget Vote No 27. It is through this process that members of the two portfolio committees made various observations and recommendations.
I must state upfront that the ANC supports this Budget Vote because we believe that the work done in the department and its entities is important and needs to be supported.
While noting that this Budget Vote debate takes place in line with the work of the previous department, it is important to reflect the political direction and welcome the President's decision to establish two new departments, instead of the one which previously fell under this budget. We support this decision because it allows these departments to have better focus, as per the proclamation made by the President, which he signed.
The joint committee received a report from the Auditor-General on the performance of the department and its entities. It is important to acknowledge that there are entities that are doing well and have received unqualified audit outcomes. We raised our concerns with those that did not do well and didn't receive a good outcome. As a Parliament we have a duty to ensure that entities, together with the department, respond to matters raised by the Auditor-General and reach a point where qualified opinions are a thing of the past. We believe we are not very far from that.
President Mandela once said to us, at the opening ceremony of Telecom 95 on 3 October 1995, and I quote:
Given the fundamental impact of telecommunications on society and the immense historical imbalances, telecommunications issues must become part of the general public debate on development policies. Telecommunications cannot be simply treated as one commercial sector of the economy, to be left to the forces of the free market.
The partnership between government and the private sector cannot be overemphasised, as neither can survive without the other in achieving the objectives we as a country have set. It is through this partnership that South Africans will be able to have access to communication tools and the modes of communicating. It is through this partnership that the drive towards ICT infrastructure development can become a reality.
Building meaningful and mutually beneficial relationships with the industry will enhance the credibility and relationship that the government has with both business and consumers, who are all citizens of South Africa. Business must be able to see that there is scope for co-operation with government to realise new revenue streams, while balancing this with the responsibility that organisations have to industry stakeholders.
The increase in the usage of data services and products by government, business and consumers has ensured that current service providers in the industry will be able to derive unprecedented profits from these products and services.
In the same manner in which government is attempting to lower mobile call rates, it should attempt to regulate prices which service providers are allowed to charge for data. Local loop unbundling has been delayed, which has caused an unnecessary economic barrier to low-cost broadband in South Africa and this needs to be attended to. In the case of mobile operators, the price of data offerings has been reduced significantly, but it is currently inflated in comparison to other countries of similar development to South Africa.
Digital migration is the process by which broadcasting around the world today is switching from inefficient analogue signals to more efficient digital ones. Transmitting broadcast content is a central element in a wider chain of broadcast communication. In fact, without digital transmission, you do not have digital migration, even if production and reception are digital.
Digital distribution, however, has a major bearing on both the production and consumption dimensions of broadcasting. In this regard, we note the sterling work of Sentech in regard to their state of signal readiness.
The provision of television and radio services to the general public of any nation is an essential component in the process of education, information dissemination, the creation of openness and transparency, and the general entertainment of the nation. In the past financial year Sentech achieved 99,9% signal distribution availability in order for the general public to watch television and listen to radio in all the three spheres, meaning public broadcasting, commercial broadcasting and community broadcasting. The work done by the regional task team needs to be emphasised and supported more. This is in line with Sentech.
The 2015 digital migration deadline remains a crucial target to be met, and the committee will need to place more emphasis on monitoring this process.
Amongst others, the concern raised by the committee was the amount required for the public broadcaster in order to fulfil its mandate. We hope the public broadcaster will be given the support it needs to meet this obligation. We welcome the fact that the public broadcaster was able to repay its loan even before the due date that was set for the loan to be repaid.
The role of postal services is changing fundamentally. Demand for the distribution of letters, newspapers, magazines, advertisements and other documents is declining, due to the rise of advanced electronic communications. In spite of major investment in the automation and streamlining of delivery networks and drastic cuts in labour costs, several former national post companies are struggling to break even because of decreasing letter volumes and market losses to new competitors.
However, high performers have focused largely on diversification, launching profitable new business lines that are vastly different from their historic business. We note progress made in the light of the corporatisation of Postbank, and we hope Postbank is going to improve by making sure that its revenue finances are stabilised as well.
Economies are becoming increasingly knowledge-intensive and technology-based, which is leading to new socioeconomic and, indeed, regional gaps between those who have the right skills set, or have access to the latest knowledge and information, and those who do not have.
Effective use of these technologies requires building new capacities and skills referred to as e-skills, not only in the work force, but in the entire population. The shortage of e-skills is even more worrying because of the fact that the supply of ICT graduates is now showing a decline.
Locally e-skills are seen as vital in addressing poverty, sustainable livelihoods, the fight against crime, building cohesive communities, international co-operation and building a developmental state.
A key strategic focus for this sector is to contribute to increasing the ICT skills base in the country through increasing access to and uptake and usage of ICT. The net result has been the integration of the e-Skills Institute, eSI, the Institute for Satellite and Software Applications, Issa, and the National Electronic Media Institute of South Africa, Nemisa, into one institute called the Ikamva National e-Skills Institute, iNeSI.
This institute is responsible for the massification of e-skills delivery at all levels, based on an aggregation framework that can harness existing resources and develop new approaches to the co-ordination of appropriate capacity development across key stakeholders such as government, education, business, civil society and organised labour. Going forward, the institute must develop new marketing strategies to ensure that more people are aware of the e-skills initiatives of the department.
South Africa should prioritise local content development in the creation, promotion and preservation of indigenous languages, arts, culture, heritage and innovation, including indigenous knowledge. The promotion of local content in the context of the information society means that ICT should communicate locally relevant messages, information and knowledge. This further means providing opportunities for local people to interact and communicate with one another, expressing their own ideas, knowledge and culture in their own languages. Local content is critical for the promotion of cultural and linguistic diversity, as well as the affirmation of cultural identity and heritage. To a large extent this means that information and communication technologies need to be conveyors of locally relevant messages and information.
We congratulate the department on its work through the .za Domain Name Authority and on having identified the need for South Africa's unique domain names, .durban, .capetown and .joburg. This will go a long way as we stride ahead for tourism and investment purposes.
In conclusion, I am looking forward to more interaction and to working together with all stakeholders in this sector. We all have a duty to our country to ensure that ordinary citizens' lives are changed for the better through the respective mandates that we hold. In spite of our political differences, political affiliations and ideological differences, all political parties are obligated to work towards building a better South Africa for all citizens.
I hope we will have more constructive engagement at the committee level, and that we will make sure that we execute our responsibilities in regard to oversight over the executive as mandated by the Constitution. It is through this work that we will be able to attain what we are here for and what we have been mandated to do. It is through this work and working together that we will be able to move South Africa forward. I thank you. [Applause.]
Mrs M R SHINN
Ms M T KUBAYI
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 11
Mrs M R SHINN: Chairperson and hon colleagues, travelling South Africa's information and communications technology highway this past year has been bizarre. We have gone from muddling along with the third Minister in as many years, to acceleration that blew your hair back with former Minister Carrim in the driving seat, to suddenly hitting a brick wall. The sudden stop, caused by the President's whim to split the department and to create a new Cabinet post and a propaganda department, has the ICT sector milling about in confusion. I am pleased that this afternoon the new Minister of Telecommunications and Postal Services has given some clarity on what his department will be doing, but that has been absent for the past couple of weeks.
The President's odd decision has once again shown that the ANC hasn't a clue about the critical role ICT plays in the economic development of our nation. It treats stakeholder engagements with contempt, as it ignores their input and advice based on experience and industry expertise. It is clear that the ANC does not understand that perpetual uncertainty and lip service to stakeholders undermines trust and inhibits investment.
Tragically, the uninformed split was a slap in the face for the many South Africans who contributed time, energy and intellectual value to developing South Africa Connect, our broadband policy that has a good chance of stopping our steady slide down the global ICT rankings.
We tried during our portfolio committee hearings on the departments' strategic plans to get clarity on the reasons behind the split and the intentions of the departments, but this was ruled out of order by the committee chairperson. Only yesterday was a presidential proclamation published in the Government Gazette, giving clarity on the legislative mandates of the departments. But there is still no clear vision of what is intended by the split. This information was not available to inform our budget debates.
How many people know that the power to censor movies, books, documentaries and mobile applications now vests with the Minister of Propaganda? Oops! Sorry, the Minister of Good News. [Laughter.]
The ICT sector's hearts will sink at the confirmation that the Independent Communications Authority of South Africa is lumped into the Department of Communications alongside the ANC's propaganda machinery. Why? Icasa is mandated to regulate the entire electronic communications sector, not just broadcasting. It belongs in the Department of Telecommunications and Postal Services.
This afternoon we have actually muddied the puddle again, where the hon Minister has told us about what instructions he is going to give to Icasa. Can we please have some clarity here today as to whether Icasa falls under the Department of Telecommunications and Postal Services or the Department of Communications? I say this because, hon Minister, it would seem that you are actually contradicting the presidential proclamation. [Interjections.]
There is uncertainty over who will drive the much delayed switchover to digital terrestrial television. Who will oversee the tender process for set-top box assembly, distribution and support? We have no idea. Which Minister, between the Department of Communications and the Department of Telecommunications and Postal Services, will drive the White Paper draft arising from the ICT Policy Review? I hope yesterday's proclamation means it will be in the Department of Telecommunications and Postal Services.
Former Minister Carrim took the policy's Green Paper around the provinces earlier this year, because he valued the input of stakeholders and wanted to include them in the process. He grasped the imperative of delivering an ICT environment that serves all citizens, governments and enterprises for our common good and prosperity.
The presidential whim to split the Department of Communications asunder was not informed by any of the stakeholder engagements of the recent past, or by the National Development Plan, which informed much of the South Africa Connect policy, or even by the ANC's own communications policy. The former Ministers of Communications weren't consulted. It was based on an uninformed presidential whim.
So here we are today, charged with debating whether the department's strategic plan is feasible and whether there is enough money in the budget to implement this plan, but the plan before us is yesterday's plan. We are here to vote on the future, but we don't know what that is. We have no idea how much of the budget before us will be diverted elsewhere, to programmes of relocation and integration or to new initiatives. Will programmes go on the back burner or be dropped altogether?
All this uncertainty reflects a turf war between the Ministers involved with these departments, and it's not only over choice of offices and staff.
First of all we have the Minister of Communications, hon Muthambi, publicly stating all sorts of bizarre things. Leaving aside the SABC for now, she posits a possible merger between the Media Development and Diversity Agency and the Universal Service and Access Agency of South Africa. Why? For goodness sake, they have different mandates!
Yesterday's presidential proclamation now moves the State Information Technology Agency from the Department of Public Service and Administration into the Department of Telecommunications and Postal Services. Why? This is the state's ICT procurement entity. Does this mean that the priority of the Department of Telecommunications and Postal Services will now be to act as government's ICT department?
Then there is talk of Broadband Infraco joining the Department of Telecommunications and Postal Services from the Department of Public Enterprises. What research or stakeholder engagement is informing these entity grabs?
The confusion over who is responsible for what runs rampant through the publications of the Department of Communications. The strategic plan of the Department of Communications has a foreword by the Minister of Telecommunications and Postal Services. There's no sign of the Minister of Communications. The foreword of the Minister of Telecommunications and Postal Services randomly refers interchangeably to the Department of Communications and the Department of Telecommunications and Postal Services. So, there is no clarity in the foreword about who reports where.
Perhaps the Department of Communications website was the first indication of where the staff's loyalties lie. Soon after the Cabinet announcement, profiles of the Minister and Deputy Minister of Telecommunications and Postal Services appeared on the Department of Communications website. There was no sign of the Minister of Communications and her deputy there. But they do get a brief mention on the Government Communication and Information System website.
While this empire building and turf war boil offstage, the ICT sector carries on making the best of an environment historically disadvantaged by muddled policies developed and withdrawn, regulatory ambiguity, inertia and a governing party that doesn't understand it.
It is thanks to the private sector that the benefits of the connected economy are felt by the majority of South Africans. We excel worldwide in ICT product development and service delivery – despite the government, not because of it. Marginalised communities have been introduced to the opportunities of digital empowerment by the massive private sector investment in mobile communication networks. Imagine the power of this energy and enterprise being unleashed in a climate of regulatory and policy certainty with government playing its role as a reliable and robust facilitator of ICT-based ingenuity and endeavour.
But I'm nervous that uninformed decision-making by political leadership will continue to hamper the rightful success of our ICT sector, making it distrustful of government initiatives. For example, much of the delay in the transition to digital terrestrial television is thanks to the fact that a Minister who didn't understand what was at stake decided to explore an alternative technology after the decision was made. There have been subsequent muddles and squabbles, and vested interest pressure groups have taken their toll on the forward momentum of a project that should bring rural entrepreneurs and the communities they serve into the digital family.
The major benefit of moving to digital broadcasting is that the resultant extra spectrum or TV white space offers a great opportunity for the creation of innovative, vibrant and affordable localised internet services countrywide. This means marginalised South Africans will access the modern economy and easily connect to all spheres of government services.
The small, medium and micro enterprises development, entrepreneurial innovation and job creation potential, particularly in smaller towns and villages, is enormous. This is the digital dividend our people so desperately need. If the ANC leadership had understood and driven this aspect of the migration to digital broadcasting, maybe South Africa would be leading developing nations in this emerging technology.
A pilot project that connected 10 Cape Town schools to broadband in the TV white space last year successfully showed that this spectrum can be used without interfering with the quality of neighbouring TV reception, even in densely populated areas. The delivery of broadband was fast, cheap and reliable.
South Africa Connect recognises that linking schools to the Internet will give impetus to drawing rural communities into the digital age, and that the connected hubs that will be their offshoots will facilitate the delivery of e-government, as well as links to economic activities.
The DA government in the Western Cape is breathing life into South Africa Connect. [Interjections.] It has committed to installing broadband connectivity to about 2 000 government offices, schools, libraries and health facilities within the next two years. They will be connected with a speed of 10 megabits per second. There will be 384 Wi-Fi hotspots in government buildings in most wards throughout the province ... [Applause.] ... where citizens can access capped free Wi-Fi.
The plan is to deliver broadband speeds of up to l00 megabits per second to all citizens in the Cape Town metro by 2020 – that's five years away. This is part of the plan to encourage world-class innovators to invest in the city and to make it the base from which they will develop ICT products and services that are internationally competitive and change lives in developed and developing nations. The DA is leading the way with South Africa Connect. [Interjections.]
Hon Minister, please don't let the energy and hope that your predecessor ignited in the sector go to waste. I ask that you give life to your statement that government needs to be radical in its approach if all South Africans are to benefit from universal access to the interconnected world.
Your radical actions must drive with determination the rapid delivery of affordable, fast communications facilities and services to all South Africans in order for them to enjoy the benefits of the digital dividend. Please do not let the vested interests of the politically connected influence how these benefits are rolled out.
You must implement with utmost speed South Africa Connect.
You must meet the analogue broadcasting switch-off deadline and free up the TV white spaces so that rural and marginalised communities can get affordable Internet connections. Please do not let broadcasters stall this to delay the entry of competitive live-streaming services.
You must auction high-demand spectrum to those best able to use it efficiently and affordably so that products and services can be readily accessible to the entire nation.
And, finally, you must regulate the industry with a light hand so as to incentivise the private sector to accelerate investment in and delivery of infrastructure, product innovation and citizen empowerment.
Just make it happen, Minister, and we'll be behind you all the way. [Applause.]
Mr M Q NDLOZI
Mrs M R SHINN
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 12
Mr M Q NDLOZI: Hon Chairperson, hon Members of Parliament and fellow South Africans, Karl Marx and Engels once wrote about modern capitalist civilisation, saying that it was characterised by an existential status of permanent uncertainty. They said that nothing is solid. In a classic statement, they said in the Communist Manifesto in 1848:
All that is solid melts into air, ...
That is true, particularly when it comes to the transformation of information and communication technologies. There is no aspect of capitalist modernity that has been transformed with so much speed and with such wide-ranging consequences as communication technologies. Communication technologies have radically collapsed space and time for human connectivity more than in any age we know of.
Mass production of information and communication technologies is indeed the shining dream of capitalist modernity, from television, cellphones and radio to Internet technologies. The classic factor, unlike in the locomotive, industrial or construction sectors, is that ICT is at the centre of human development and advancement of knowledge, in order to move from generation to generation and from country to country, with speed and precision.
This makes communication one of the most critical components in order for vulnerable communities, for example, to have the ability to be self-sufficient. No human freedom can be imagined any more without the freedom of access to information. You are not free unless you are free to know!
The foundation of our critique of the business that will be located in this department is precisely this. To what extent does it advance access to information, particularly in the light of the capitalist hunger and greed to turn everything into private profiteering for a few individuals?
The roll-out of low-power transmitters, the roll-out of digital terrestrial television and information technology storage or disaster recovery plans are urgently needed.
Sentech, the Universal Service and Access Agency of South Africa, the Independent Communications Authority of South Africa, and the SA Broadcasting Corporation have yet collectively to demonstrate competence in meeting deadlines in the administration and sustenance of the inevitable digital age that is upon us. We face a danger of being held back, when others advance to a competent future. The world is, as Engels put it, in "constant flux" and we have to keep up with real speed.
As things stand, the missing link in the drama of the planning for and strategising about ICT by government is how we as a country can immediately claim self-sufficiency in the production of these technologies, particularly electronics. For instance, many of the entities can't tell us how many of these technologies will be produced here in South Africa in 5 or 10 years.
Even if we were to achieve rolling out 100% of broadband penetration by 2020 through massive broadband infrastructure development, the devices that are needed to access all these products are still produced outside the country, for instance, TV sets, radios, cellphones and computer sets, as well as tablets. [Interjections.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Order, hon members!
Mr M Q NDLOZI: According to the Africa Mobile Observatory report of Global Systems for Mobile Association, there were 59 474 500 cellphone devices in South Africa in 2013. About 8 million South Africans access the Internet on their cellphone, which must tell us that the demand for smartphones will be on the rise. There are a further 24 million TV sets in the country, and this includes TV sets in hotels, hospitals, and other institutions. These numbers are naturally on the rise. Unless your planning goes aggressively into the production of information and communication technologies, you have not even started doing real industrial planning.
The reduction of the cost of communication starts with relocating the production of these electronics from abroad. Here lies employment and an opportunity for the country to claim a certain form of independence. If we were to close our borders, communication would be stopped because cellphones, TV sets and all sorts of other things come from outside. Here lies employment, as I have said, and in two years we will not be able to communicate, as it were. We need to break economic ... [Interjections.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Order, hon members! Order, hon member! Sorry, hon member Ndlozi. Hon members, can we please allow the hon member to speak? The person who was clapping is a member of the House. It is just because the seats are full that they are sitting at the back there. I just thought I needed to clarify that. I saw members looking worried that people in the gallery were participating. Hon member, you can continue.
Mr M Q NDLOZI: We need to break economic dependency by thinking much more aggressively about plans that target the relocation of production itself. This is what the EFF means by protected industrial development – produce ICT electronics locally and protect them.
Foxconn, the Taiwanese multinational electronics contract manufacturing company, has set up a plant in Brazil, for example, and has created employment for local Brazilians, including engaging in skills transfer. Why don't we engage these multinationals with sound deals of industrial protection and benefits, with the condition of local production and skills transfer?
Usaasa has been given a total of R1,3 billion as a subsidy for the roll-out of set-top boxes for needy families or households. All these will be produced outside South Africa. Usaasa still has to tell us how it will distribute them and whether it has identified those households. However, all these set-top boxes come from outside, while there is a real opportunity for local production.
Finally, Chair, on a much more important note, the Post Office, by the way, is complicit in the oppression and killing of Palestinians. Its employment of G4S means we are directly supporting a company that guards the apartheid wall in the West Bank, and runs prisons that hold underage children and Palestinian political prisoners without trial. Two years ago, the workers of the Post Office asked this department and the Post Office to immediately divest, and stop its contract with G4S in order to honour, protect and advance Palestinian freedom. [Time expired.] I thank you. [Applause.]
The DEPUTY MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES
Mr M Q NDLOZI
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 13
The DEPUTY MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES: Chairperson, I am following on after hon Ndlozi – we are both in navy and he is not in red today!
I would briefly like to acknowledge our hon Minister of Telecommunications and Postal Services, hon Dr Siyabonga Cwele, all other Ministers and Deputy Ministers in attendance, and our Members of Parliament. I would especially like to mention the chairpersons of both our committees, who have been able to lead us in a very capable and enlightened way. This is in contrast to what I have heard here, where people are still worried about the transformation process and seeing it as an ANC process. It is a normal process of evolution as we begin to strategise and see how best to meet the urgent needs. Finally, ladies and gentlemen, I would like to welcome all of you as well.
The ruling party has mandated its government to embark on radical economic transformation so as to tackle the triple challenge, namely, inequity, poverty and high levels of unemployment. I think it is important to emphasise this statement because, if we do not understand the meaning and the dynamics of these, we will face the temptation to query each and every strategic move on the part of government, asking why they are making it. In fact, we are facing the elephant in the room – an abnormal situation where the wealth of the country is in the hands of the minority.
Our people have called upon us to initiate programmes and activities that support the acceleration of the new economic growth path. Our strategic focus must therefore seek to guarantee that information and communications technologies make their substantive contribution as an enabler of and a leader in economic growth, and also positively influence job creation and transform South Africa into one of the most inclusive developing countries.
We acknowledge with pride that the number of people employed in the sector has increased significantly. The ICT sector now employs thousands in its networks, services, IT companies, call centres – you name it – and contributes about 8% to the GDP of the country.
The Industrial Policy Action Plan has identified the ICT sector as key to promoting industrialisation and growth. I think that is what the hon Ndlozi was struggling with, with a limited understanding of the policies of the governing party. A lot has been done to establish industrial development zones. We have two industrial development zones specifically earmarked for ICT manufacturing. So, he has come here and confused the House by saying that as long as we do not manufacture here, we do not know what we are doing. It shows that some hon members do not take the time to learn about the policies of the ruling party. [Applause.]
The National Development Plan is another important vehicle that we should all be trying to understand, and we should recognise the significant role that it is meant to play. The ICT sector can also play an important role in ensuring that we have the set targets we need.
The National Development Plan identifies a number of factors slowing down the development of the ICT sector. An example is policy constraints, and I think hon members have spoken to areas where there are limitations. There are also weaknesses in institutional arrangements, and I think that is exactly what the presidential proclamation is aimed at addressing. There are also regulatory failure and limited competition, as well as the inability of the regulator to open the market sometimes.
The NDP further notes that the work of the Independent Communications Authority of South Africa has been hampered by legal bottlenecks, and limited capacity and expertise. These challenges have weakened market growth, making it difficult for the sector to deliver in regard to information and communications technologies for development.
These constraining factors or limitations are addressed in the strategic thrusts of our programme, which relate to, firstly, creating appropriate conditions for the managed liberalisation of the sector. I underline "managed". Then there are also transforming and democratising the sector, and ensuring universality and affordability of ICT services to the people. I think the Minister said a lot about that. The message is clear and unambiguous – the government and the department have resolved to move with speed in ensuring that this becomes an affordable service to all the people.
The Icasa 2014-18 strategic plan articulates the vision of the regulator in dealing with the promotion of competition; protecting consumers to ensure universal service and access to all communication services at affordable rates, and we are emphasising that because it is a co-mandate; promoting the efficient use of spectrum and numbering resources; and facilitating nationwide broadband penetration by 2020.
Within the International Telecommunication Union and the World Radiocommunication Conference, which is coming up next year, we hope to position our country as a leader in ensuring that this natural and scarce resource is used to develop our people holistically, while growing the business and ensuring universality and affordability of ICT services to the people.
During the 53rd National Conference of the ANC delegates pronounced:
ICT is a critical enabler of economic activity in an increasingly networked world. It is critical for South Africa to remain globally competitive. The sector needs long-term policy certainty to be in a position to take the country into the next trajectory.
I think the Minister has just given that. He has assured us that there is a resolve to stop the "stop-and-go", and to take the country forward.
The ruling party in its manifesto then assigned this Ministry to focus on investment in a comprehensive plan to expand broadband access throughout the country and substantially reduce the cost of communication and promote economic growth.
The South Africa Connect broadband policy of the department has to be implemented. When we started, we spoke about radical economic transformation. In this instance we have come into the department and made it clear that the policy has to be implemented with speed. This will go a long way toward ensuring that universal access is achieved, as outlined in the NDP. But mostly it is a huge investment in attracting foreign direct investment and the optimal use of the undersea cables that we in South Africa have installed.
The often unco-ordinated and fragmented infrastructure initiatives are a key weakness that results in unwarranted duplication of resources, which ultimately leads to a higher cost of services and inhibits further roll-out of networks.
The department will continuously improve guidelines for operators on sharing operator-specific infrastructure to avoid duplicating infrastructure in an area. This will result in the country's saving costs. Likewise, harmonising related infrastructure development by relevant Ministries, such as Transport and Energy, to ensure provision of cable ducts in the design of roads, pipelines, railways and power lines, will go a long way toward alleviating the cost burden of establishing fibre networks.
The department will ensure a close relationship with all the affected entities in order to ensure co-ordinated efforts towards the roll-out of services which share passive infrastructures.
The policy directive in this regard was issued to the regulator long ago. All we need is action; hence the Ministry of Telecommunications and Postal Services has been formed.
The department will also foster partnerships with other government entities to ensure the speedy and effective establishment of services. This refers particularly to the Department of Public Works, where there are regular excavations of roads infrastructure.
The persistent duplication of resources by operators installing core cabling infrastructure in the same place at different times is a challenge to development, especially when it comes to the access of rural communities. Furthermore, the loss of opportunity in building communication infrastructure during the establishment of roads, power, water and other utility networks needs to be minimised.
In December 2012 the Presidential Infrastructure Co-ordinating Commission launched Strategic Integrated Project 15, which is about expanding access to communications technology.
It is important that the configuration of some of the state-owned companies be reviewed in order to achieve the objectives of SIP 15. The department is on track in positioning our agencies like Postbank, Telkom and Sentech, and also our Post Office services, amongst others, in the infrastructure roll-out and possible spectrum reallocation, so as to ensure penetration in rural communities.
Let me reiterate that the need for financial inclusion and access for the unbanked is crucial; hence Postbank is under way. You know we are talking about postal services today, and there has definitely been a resolve that we will have Postbank as soon as possible.
The department will encourage a multipronged partnership strategy. The strategy is to ensure that various government partners, such as the Universal Service and Access Agency of South Africa, partner with a number of sector entities. These will bring a range of unique public access solutions that will assist the agency in fulfilling its mandate, further the goals of an inclusive information society, and encourage entrepreneurship in underserviced communities.
The department has also been playing an influential role in championing the interests of the continent. One of the key partnerships is the one that we are working towards with the government of Lesotho. The project is to connect Lesotho to the Eastern Africa Submarine Cable System. Once complete, the connection will open numerous economic opportunities, for the youth of Lesotho in particular.
South Africa has been honoured to be awarded a seat on the International Telecommunication Union Council. We look forward to ensuring that South Africa remains committed to the world and builds strong partnerships for policy development with the United Nations Development Programme, the Universal Postal Union, Unesco, WHO and the Organisation for Economic Co-operation and Development.
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Deputy Minister, you still have two minutes.
The DEPUTY MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES: At this point I think I need to move to something very important and close to my heart. I am happy we have the Mother of our Nation here, Comrade Nomzamo Mandela. [Interjections.] I think it is important, when presenting a Budget Vote on ICT, to remember some of our stalwarts who really championed the importance of ICT, especially for connecting women who are vulnerable people in rural areas and all other women who are in informal settlements and poor communities.
We would be failing in our duty if we did not mention the R51,4 million that has been set aside to fund e-skilling. We are hoping that a huge percentage of it will benefit women. [Applause.]
I want to mention the late Ivy Matsepe-Casaburri as one of the women who learned, on arrival from exile, from Mama Winnie Mandela about the importance of putting women at the centre of development. With passion and energy she drove the inclusion of women in ICT and ensuring that women were not only beneficiaries, but also in the driving seats when it comes to that. [Applause.]
The late Minister, Roy Padayachie, passionately drove the ICT industry collaboration initiative together with the captains of the ICT industry. We acknowledge all the captains of industry, our Director-General and the officials and we will revive the work that was left by the late Minister, Roy Padayachie. I thank you. [Time expired.] [Applause.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Order! Before I call upon the next speaker, I wish to say the following. Simple respect for our elders comes naturally to all of us. Mama Winnie Mandela is Mama Winnie Mandela. The Deputy Minister was acknowledging the presence of Mama Winnie here, which all of us would like to acknowledge. [Applause.] Therefore, for anybody to throw other names into the mix is not helpful. Members, I think we should behave like honourable members of this honourable House. Thank you very much.
Mr P P MABE
The DEPUTY MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 14
Mr P P MABE: Chairperson, hon Minister of Telecommunications and Postal Services, hon Minister of Communications, respective hon chairpersons of the Portfolio Committee on Communications and the Portfolio Committee on Telecommunications and Postal Services, and hon members of the fifth democratic Parliament who, of course, bear the great honour that comes with being here, two features of this honour are respect and discipline. This is so that when we serve our people, they will understand that we are people worthy of being trusted, because we are disciplined and we respect the elders, and we bear ourselves in that way.
Each day when we come to this Parliament to receive reports, deliberate in committees, and formulate and pass pieces of legislation, we are driven by precisely one common desire. This is to make South Africa a better place, regardless of our political divisions and orientations, and regardless of the disrespect we are taught in our parties, those of us who do not represent the ruling party.
We in the ANC continue to be guided by the overwhelming need to transform South Africa into a nonracial, nonsexist and democratic society, full of people that have respect, and also the need to move with speed in the transformation of the media and ICT sector, whose ownership patterns still reflect the patterns of ownership, control and distribution of the past. [Interjections.] This, we believe, can only be corrected by providing a firm foundation in policy for a communication sector that embraces all South Africans and treats them equally and with respect.
The Freedom Charter continues to inspire our courage and desire to do more for many. Moreover, the equal rights enshrined in the Constitution of the Republic should mean equitable distribution of resources, including access to information and other modern advances of communication, which create common and equal relief amongst all our people, regardless of where they live. So setting up a Ministry of Communications has never been an attempt on the part of our government to set up propaganda machinery. [Interjections.]
We have always attempted to make sure that we disseminate information that is relevant to empowering all of our people. [Interjections.] This is because we take pride in the things that we said before we came into government. We had then already developed a document called Ready to Govern. In that document we captured how we would be able to govern with the people of this country, regardless of their colour. [Interjections.] For example, our people can only work the land equitably if they have access to similar infrastructure as others and are exposed to common development without barriers.
I have learnt that here in Parliament those who have more "airtime" are we in the ruling party. [Laughter.] [Interjections.] According to the 1996 White Paper on Telecommunications, the state's vision for telecommunications is one that balances the provision of basic universal services. [Interjections.] In the mobile space there is "airtime" and there is "Please call me". We are using "airtime" here. [Laughter.] [Applause.] It is one of the provisions of basic universal services to disadvantaged rural areas. [Interjections.] I am not responding to "Please call me", as we are quite busy now. [Laughter.] Affordable communications for all citizens and businesses alike, throughout South Africa, are at the core of this vision.
Actually, one of the points that we almost missed was to share the very important story of Phalaborwa. It is only we who come from Phalaborwa, so it will only be we who can relate that story well. Part of what we are trying to work on is making sure that the speed at which the people of Phalaborwa in Limpopo Province are able to connect to the people of Johannesburg is massified. This can only happen when the people ...
Xitsonga:
... vanhu va hina lava nga emakaya loko va ri na burodibende va tlhela va va na tisayiba kutani va kota ku vulavula na maxaka ya vona lava va tshamaka eJoni. [Nkavanyeto.]
Sepedi:
Re tsene fase re a šoma, re keketana le thaba, re netefatša gore MaAfrika-Borwa ka moka a kgone go bona gore ponelopele yela ya Ntate Nelson Mandela ya gore batho ba rena ba phedišane e be ngatana e tee, e a kgonega.
Rena re le ANC re kgolwa go gore mphogo o motee o kgona go emišana, wa tsekatsekišana, wa tsena fase, wa aga naga. [Tšhwahlelo.] [Legoswi.] Ka Sepedi ba re: "Mphiri o tee ga o lle."
English:
We are standing together as one to try to share with you the advances that we have made. Tribal authorities, for instance, should have access to Wi-Fi, and be able to communicate faster and more efficiently with their people. This would contribute greatly to making our villages and many rural areas more advanced and compatible with modern-day development.
Sepedi:
Go swanetše go be bonolo gore batho ba Makhushane kua Bollanoto ba kgone go bitšwa ke dikgoši goba dikgošigadi ge go na le kgothekgothe.
English:
We must make sure that they too have access to Wi-Fi. I am sure that this is difficult for others to understand, but this is what our revolution is all about, making sure that we give our people access to this.
The continued monopoly of the telecommunications network space has the potential to negate shared growth and market diversity if regulations are not tightened. It is therefore important that the Independent Communications Authority of South Africa continue to implement regulations that enforce transformation and ultimately break the barriers in the economy.
It is therefore important that those of us who distribute towers for mobile telephones also reflect the full character of the South African mix. All South African people must have the right to own their own mobile networks, if they have the resources to do so.
At the same time, attention needs to be given to the unconnected in regard to priority policy and regulation, and action needs to be taken to improve the accessibility and affordability of telecommunications services. I think that this point has been deliberated on quite extensively because the cost of mobile telephone billing is quite high in this country. We need to make sure that it is substantially reduced.
I say this because a simple example is that it is possible to call each other for free on the same mobile network at certain times. The only thing that makes the billing different is the time of day during which that call is made. What would have happened during the day still takes place and people are able to communicate. It means, hon Minister, that it is possible to call for free during the day, so that our people do not have to send each other modern reverse calls which are called "Please call me's". They are then able to call each other for free.
So, we need to reduce this because during the election campaign the ruling party promised our people that it would lessen the cost of making calls. We must stick to this commitment, because the government that the ANC leads has always delivered on the commitments it has made. [Interjections.] In a connected country, be it South Africa or another, or indeed, be it the continent of Africa, nothing sums up the potential of ... [Interjections.]
Sepedi:
MODULASETULO WA NAKWANA WA NGWAKO (Mna J M Mthembu): Kgoši ya ka! Kgoši ya ka, o šetše ka metsotso e mebedi.
Mna P P MABE: Go tla nyakega gore re kitimele kua mafelelong. [Disego.]
English:
Chairperson, we must arrest underdevelopment. I heard the Minister and the Deputy Minister speaking about other issues of policy, and maybe it is important that I bring the people of Phalaborwa to this House in that regard. So, let me say that we must arrest underdevelopment, which is perpetuated by the challenges we have just outlined. Let me borrow from the wisdom of our forebears whose courage is best personified by the Sepedi idiom that ...
Sepedi:
"... tšhipu e rile ke lebelo, mohlaba wa re ke nabile."
English:
We should never allow the speed at which monopoly capital prevails to outweigh the development of our people. This we must do, amongst other things, by giving maximum fiscal support to Usaasa so it attains it's objective of providing accessible broadband to mostly underserviced areas, the people of Sekhukhune ...
Sepedi:
... boNgwato le boHlabirwa ...
English:
... to connect them to all over the world without any hindrance.
As they watch the sun rise, trying to figure out what is best for their communities, our chiefs, kings and queens – dikgoši le dikgošigadi – have maintained that sekhukhune se bonwa ke sebataladi [no sun outlasts its sunset]. True to our conviction, the lack of diversity within the ICT space is an orchestration of monopoly capital to advance an unintended societal divide by placing investment in areas that seem to be commercially viable. [Interjections.]
Xitsonga:
Vutomi byo antswa eka vanhu hinkwavo.
English:
Our continued attempt to create a better life will find its correct meaning and expression when our people can connect with one other and talk at a much more reduced and affordable cost.
Sepedi:
Bagologolo ba re: "Maropeng go a boelwa."
English:
As we return home to our rural homesteads in Bollanoto, Phalaborwa, we should be able to enjoy the advance of information and computer technology by being able to connect to the world without any hindrance over the next few years, so that we, the rural dwellers, can appreciate that like Johannesburg, Phalaborwa gives us an acceptable address. [Interjections.] You must come to Phalaborwa. Thank you. [Applause.]
IsiZulu:
USIHLALO WENDLU WESIKHASHANA (Mnu J M Mthembu): Sizobiza-ke ilungu elihloniphakile uBaba uKhubisa - kungathi kade ufuna ukuza vele baba, ubusungithumelela imiyalezo ubuza ukuthi kanti ungena nini. Nali-ke ithuba lakho baba!
Mr N M KHUBISA
The TEMPORARY CHAIRPERSON (Mr J M Mthembu)
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 15
Mr N M KHUBISA: Hon Chairperson, and hon Ministers and Deputy Ministers who are present, ...
IsiZulu:
... cha, akunjalo. Ukuthi kukhona abahoxile lapha, besaba, ngase ngicabanga ukuthi kungathi bazisabile ngoba sebehambile manje. [Laughter.]
English:
We all agree that there is a huge cost to communication. Therefore, all of us must find the means to ensure that we make communication cheap.
Having said this, I am certain that all of us agree fully on a vision that aims at connecting all of our people, and all the sectors of our society, through information and communication technology knowledge. In this regard, the digital networks, migration services, applications, content and devices integrated into the economic and social fabric of our society are of paramount importance.
The point in question here is that society must connect. Society must be active. Society must talk and communicate on all matters that will improve its way of life – connect, in the interests of human coexistence; promote economic growth; create work opportunities; expose people to other worlds; and encourage skills development.
Vexing perennial questions are these. How do we create an informed citizenry, both in rural and urban areas? Also, how do we ensure that we optimise information and communication technology to improve communication for the young, women, the old and the physically challenged?
I have alluded to the fact that communication is expensive – it is very costly – whether it is radio, telephone, television, cellphone or the print media. Together we need to devise ways and means of making communication easy for the young, the poor, women and the unemployed, including those in the rural areas who are indigent.
The greatest chunk of the budget of the department is transferred to certain entities, the public entities of the department. These are the SA Post Office, NS, Sentech, Icasa, Usaasa, Sita, etc. Perhaps it is important to say that if we look at Usaasa for the 2013-14 financial year, according to the Auditor-General it was observed that 43% of the targets were not met or they were not specific, and 29% of the indicators were not well-defined. Material adjustments were required to reported information ... [Interjections.]
IsiZulu:
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Baba, ngikunekeza-nje imizuzwana engamashumi amathathu ukuthi uqede inkulumo yakho.
English:
Mr N M KHUBISA: The list goes on. In conclusion, I want to say that the connection of schools, FET colleges and municipalities to the Internet is supported by the NFP, and the classical example is what has happened in the Zululand District Municipality. I am happy that the hon Deputy Minister is here. When she was still the Mayor of Zululand, she connected all schools to the Internet and gave them web boxes – all high schools. [Interjections.] Thank you, Chairperson. I appreciate it. [Laughter.]
IsiZulu:
Bese ngiqedile baba; ngiyabonga! [Laughter.] [Time expired.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): We were expecting to call upon the hon Madisha now. [Interjections.] He was there when you started speaking. [Interjections.] Unless he has a reasonable explanation to give to the Chair, he might as well forfeit his speaking time. Is there a reason? Do you want to explain something, hon Ndlozi? [Interjections.] No, that is fine, just speak.
Mr M Q NDLOZI: I think that there is a reasonable explanation because the programme that was presented to us has been confused by yourself ... [Inaudible.] [Interjection.] ... so that the hon Madisha will ... [Interjections.][Laughter.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Well, that is why I gave you time to speak, hon Ndlozi, because all of us have this speakers' list. Can you please withdraw the statement that I have confused the House? Just withdraw that part because it is not true! [Interjections.]
Mr M Q NDLOZI: I withdraw it. [Laughter.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Wonderful! Now, we know what the plan might be, because he would probably like to speak after a particular person, but I don't think that hon members should do that. When we have a speakers' list, and you know that there is a speaker at the podium who is immediately to be followed by you, and you go out of the Chamber, it simply means that you indeed want to forfeit your right to speak.
Can I call upon the next speaker now, because we have given the hon member Madisha ample opportunity to show up? That is why I opened this discourse, so that we could give him ample opportunity to come back from wherever he is, but he has not been able to do so. I call upon the hon member, Nkoana. [Interjections.] Hon members, let us give the hon member Nkoana an opportunity to make his speech.
Mr H F NKOANA
The TEMPORARY CHAIRPERSON (Mr J M Mthembu)
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 15
Mr H F NKOANA: Hon Chairperson, Ministers and Deputy Ministers in this Chamber, hon members, esteemed guests, comrades and friends, and members of the public, the ANC-led government started a profound journey and we will continue to travel on this journey for many more years to come.
The White Paper on Postal Policy was a well thought-through policy document which has not faded over time. Today, however, telecommunications and electronic communications provide easier and quicker means of keeping in touch. To a certain extent, such new technologies are serving as substitute for postal communications and in turn diminishing the importance of the social function of postal services.
While this might be true, South Africa presents a unique case, however, in the sense that no other country in recent history has experienced such dramatic change in the legal and political context in such a short space of time. Context remains important in the historical sense, as the inequalities that were engineered as a facet of apartheid continue to bedevil the current context. Nowhere is this more apparent than in the disparities in access to ICT in South Africa.
There is no doubt in my mind that post offices throughout the world need to redefine their existence. They must undergo radical change and transformation. The time for "bandage solutions" is gone. This is the time to attend to the situation in a major way.
At the same time, the census by Statistics SA on community preference indicates that although the market position of conventional postal services is declining, many people still just find paper records more reliable and trustworthy. We still believe in letters!
Basic postal services are the right of all citizens. They are essential to the social and economic development of the country. Access to reliable and efficient postal services contributes to the success of development programmes and policies, and also contributes to the dignity and respect of South African citizens. It is important to note that the postal network should link every citizen in the country to a service that they need and wish to use.
So, the postal network allows for the flow of goods, services and payments between economic agents. An efficient postal network sufficiently and significantly reduces transaction costs across the economy, forges markets where they did not exist before, and supports knowledge transfer between those agencies, which allows innovation and growth.
A survey by the World Bank Consultative Group to Assist the Poor indicates that more than 2,9 billion people globally do not have banking services. Access to banking can help to lift people out of poverty by providing ways to such people to bank money and make payments without having to travel very far. These people often come from rural areas and are in the cities, and need to send money home regularly. So, the use of information and communication technology payments helps them to avoid the risks of crime and the costs and hazards of travelling.
Sesotho:
Ke mokitlana. [Interjections.]
English:
The postal networks of the SA Post Office also provide financial logistics and e-commerce services to countless customers. Postal services are increasingly moving into the field of electronic services to better meet customers' evolving communication needs. In addition, the world's postal services today process and deliver 381 billion letters and 6 billion parcels annually. They use an awesome worldwide network, linking them together through sophisticated processes and technologies.
In the long term the SA Post Office is looking to respond to the changed environment by developing the postal service through mail-order services and parcels, as well as other modern postal products, including hybrid mail and registered emails, to which the Minister has alluded.
The South African Postbank Limited Act provides for the corporatisation of the Postbank division of the SA Post Office as a financial institution, servicing mainly the unbanked society.
This is in line with the National Development Plan, and also the New Growth Path which notes that an adequate communications environment:
... provides the backbone for a modern economy, and expanding the infrastructure will go together with measures to reduced costs.
To this end, in an effort to provide a wide range of affordable and accessible financial services to the unbanked, the department and the Post Office will expedite a roll-out of Postbank centres and outlets throughout the country.
An adequate communications environment provides the backbone for a modern economy. Therefore, expanding infrastructure will go together with measures to reduce costs. We also know that while urbanisation will continue, a significant part of the population will remain in the rural areas, engaged in the rural economy.
Postal services enhance the efficiency of SMMEs, reduce costs and broaden the market reach both locally and globally. Since SMMEs play a major role in national economies, such benefits to them may collectively translate into positive results in the form of job creation, revenue generation and overall competitiveness of the country.
The postal outlets of the SA Post Office are the largest part of the postal sector. The outlets address the logistical challenges of people living in the underdeveloped areas, improve competitiveness, and overcome the spatial patterns of apartheid. At the same time, they also offer direct employment in operations, such as the need for tellers, maintenance and e-services, whilst new opportunities may emerge to further address existing social equity goals and the ICT inequalities that exist in society.
On the other hand, the SA Post Office is increasing the rural customer base as an alternative drive for socio-economic growth in the rural areas. [Interjections.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Hon member, you still have two minutes to finish. You can decide on which issues to touch on. Two minutes!
Mr H F NKOANA: All right, Chairperson. The provision of postal and financial services to South Africans should be affordable and accessible by all South Africans, as my colleagues have said.
The alignment of the Post Office mandate with supporting government programmes such as entrepreneurial development, with a major focus on the empowerment of women entrepreneurs, should be central.
Rural development through the rolling out of household postal addresses to people who do not have addresses should continue, but not at the expense of the Post Office's losing revenue.
We call on the Minister to work towards ensuring continued government support in order to address the mandate, and that this be supported by a subsidy for post office operations. With more than 2 400 postal outlets, the penetration of post office services is felt in communities, particularly in rural areas where other service providers are not accessible at all.
The Post Office promotes a culture of saving through a bank, which contributes to economic and social upliftment and the creation of decent work, as well as the financial sustainability of the country.
In order to bring about stability in the sector, the department and the unions need to work together to resolve issues around labour practices which tend to impact negatively on the revenues of the Post Office.
The postal sector and the Post Office should develop innovative ways to create job opportunities.
We also urge government departments to make use of the Post Office as it is government-funded and a government-owned entity. We also urge the Departments of Education and of Communications ... [Time expired.] We support the Budget Vote. Thank you. [Applause.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu)
Mr N F Nkoana
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 16
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Hon members, we are democrats deep down in our hearts. Since I spoke on this matter earlier we have been alerted to the fact that hon Madisha wrote a note to the Table staff, indicating that he had urgent business to attend to. Of course, what is surprising is that this urgent business coincided with his time to come and speak! So, as we fought for democracy and are therefore democrats, we will indeed allow hon Madisha to speak if he comes before the hon Minister has replied. However, if he doesn't, and the Minister has been called to come and respond to the debate, hon Madisha will then forfeit his time to take part in the debate. I think we have done our bit under the circumstances. [Interjections.]
IsiZulu:
Khuluma baba!
Mr A M MPONTSHANE: Chairperson, I think there is a bit of confusion here. If you look at the Order Paper, it refers the debate on Vote 27 as being "Communications" – full stop.
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): And so?
Mr A M MPONTSHANE: Yesterday it referred to the GSI only, so I think ... [Interjections.]
HON MEMBERS: GCIS!
Mr A M MPONTSHANE: No, I am trying to explain to the Chairperson what has happened to some of the members. So, they thought today was a debate on Communications, but ... [Interjections.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Just a minute, hon member. Are you explaining ...
Mr A M MPONTSHANE: Yes, yes.
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Are you trying to say we should not give Mr Madisha another opportunity to speak if he comes back, or we should give him an opportunity? Address yourself to that issue.
Mr A M MPONTSHANE: No, no, Chair. I am trying to explain why he was confused, if he was confused. [Interjections.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Can you please sit down, hon member? [Interjections.] Sit down, hon member. [Interjections.] Just sit down [Interjections.]
Mr A M MPONTSHANE: Chairperson! [Interjections.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Take your seat, chief! [Interjections.] Just take your seat, chief! Hon members, I have just said ... [Interjections.]
There he comes! [Laughter.] There was no confusion in the hon member! The hon member wrote a note to say that he had urgent business to attend to. Because we are democrats, we will allow the member to speak now. Speak, hon Madisha! [Interjections.] [Laughter.]
Mr W M MADISHA
The TEMPORARY HOUSE CHAIRPERSON (Mr J M Mthembu)
UNREVISED HANSARD
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Wednesday, 16 July 2014 Take: 16
Mr W M MADISHA: Chairperson, ... [Inaudible.] ... this is exactly what is happening to our government ... [Interjections.] ... and I will explain. Truly the people of our country must see this. They must understand that confusion will always be created to make sure that what the people have to come up with does not take place.
I want to emphasise that we cannot support this Budget altogether. The Government Communication and Information System, GCIS, established in terms of section 7 of the Public Service Act, 1994, is meant to meet all of the demands of our democratic human rights environment.
With the loyal support that this government has had from the voters in successive elections, one would have expected a quid pro quo from this government. Unfortunately South Africans, who were made to endure an information deficit as a result of apartheid and poverty, are generally still lagging behind in that respect in 2014.
Those of us who were in that movement for almost three decades are disappointed at the kind of thing that is happening. Our people do not have the information to engage in meaningful dialogue with government. Citizens with grievances therefore have to take to the streets and, shockingly, they continue to resort to mindless vandalism in making their point.
I must emphasise that we are all pessimistic about whether the department will succeed in switching off analogue television by this time next year when the deadline arrives. Neither do we believe that the department will have succeeded in allocating the spectrum required for broadband penetration.
I also want to emphasise that we will not support this Vote because we stand for transparency, we stand for digital migration, we stand for broadband penetration, and we stand for the public broadcaster, for example, and all the other matters that we are talking about. [Interjections.] We stand for the perpetuation of what late President Nelson Mandela raised, his legacy. Where this department is headed is not acceptable to us. [Interjections.]
We cannot in good conscience support this Vote. We can't. My former comrades are lost and my former comrades are killing our people. [Inaudible.] [Time expired.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Hon Madisha, will you take your seat?
Mr W M MADISHA: Thank you very much. [Applause.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Members, let us observe the decorum of this House, please. I now call upon hon member MacKenzie.
Mr B M BHANGA: Chairperson, on a point of order: We have a responsibility as Parliament, as debates are recorded verbatim here. The Table should guide us in this respect, whether here today ... [Interjections.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): What is your point of order, chief?
Mr B M BHANGA: It is what I am going to say.
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Put the point of order.
Mr B M BHANGA: The point of order is that what we are supposed to be discussing today is not being recorded as such. What we are discussing here today in this debate is not being recorded as what we are supposed to be discussing. I say this because today we are supposed to be discussing Communications and Telecommunications. According to the programme we are discussing Communications. Now the Table should guide us in this respect, because it has caused a lot of confusion to members.
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Thank you.
Ms J C MOLOI-MOROPA: Chairperson, on a point of order: We have had two debates. The other debate on the GCIS was yesterday and it proceeded properly. Today we have Communications. It is a joint committee sitting and we have been proclaiming it as both.
We are not sure where the confusion comes from. People who consistently attend the committee meetings have no confusion and understand what is happening. It is the debate on Budget Vote No 27 – Communications. There is no confusion, it is straightforward, and it has been reflected as such. Any point of order stating that there is confusion is wrong.
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Thank you very much. Let us agree that we are continuing with the debate on Communications and that there is a joint portfolio committee dealing with both matters. Can I call upon you, hon MacKenzie? I know that you are not confused! [Laughter.]
Mr C MACKENZIE
The TEMPORARY CHAIRPERSON (Mr J M Mthembu)
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 17
Mr C MACKENZIE: Chairperson, for a maiden speech, to have to do the walk to the podium twice was a bit much, but I am here!
Hon Minister, hon Deputy Ministers, and hon members from the DA and other parties, ... [Laughter.] ... digital terrestrial television has much to offer South Africans – a better TV signal, potentially more programming and services and, most importantly, freeing up the exceptionally valuable spectrum used by analogue signals for broadband use, which is the so-called digital dividend.
I am pleased to note that this is the first thing we can all agree on, hon Kubayi.
Back in 2006 South Africa and other nations signed a treaty with the International Telecommunication Union that committed our country to migrating completely from analogue to digital broadcasting by June 2015. In other words, we'll switch off the analogue signal and we'll switch on the digital one. Digital terrestrial television will be born.
I note the Minister's intention to finalise policy, as he says, within a month. Well, Minister, the road to hell is paved with good intentions and frankly we have heard plenty of intentions before about digital terrestrial television.
Should we fail to do this, the consequences are very serious indeed: Our analogue signal will no longer be protected, we will be in breach of an international treaty, and our failure to abide by this treaty means further reputational damage to South Africa and our standing in the eyes of the international community.
Our international reputation already suffers from poor performance in regard to several indices. We can't afford any further loss in our international standing, or the erosion of our national brand, which Brand South Africa has asked the South African taxpayer for R169 million to protect.
This is the second thing we can all agree on, hon Minister Cwele.
Minister, you said that within three months you would designate the date of the start of the switch-on. Well, I have some good news for you. It has already started.
During the recent round of Budget Vote presentations, those to the joint sitting of the Telecommunications and Postal Services and the Communications committees, it was clear that the entities responsible for the technology, distribution, broadcasting and roll-out of digital terrestrial television are ready to go. Some have been so for quite a while now.
For example, Sentech can provide 83,7% of our people with digital terrestrial television. The rest will be served by satellite, meaning a 100% population coverage. The Universal Service and Access Agency of South Africa is sitting on a cash pile of almost R1 billion, ready to install set-top boxes, aerials and dishes. The SABC has already switched on its digital test signal and is broadcasting in this format.
This is the third thing we can all agree on, hon Ndlozi.
Now, if you've got an older analogue TV set, you'll need a set-top box, or STB, to convert the signal to analogue so you can watch it. You could watch it without this STB, but the quality would be quite terrible.
Without going into too much detail, I've read quite widely and extensively over the last while, and if there's a fourth thing we can all agree on, it is this. This is the point where all agreement stops - between the government, between manufacturers, between broadcasters and between industry associations.
Eight years ago the government came up with a misguided scheme for the local manufacture of set-top boxes. It was meant to create opportunities for our people, using black economic empowerment as a yardstick. And for eight years now the government has been flip-flopping as pressure has been brought to bear, from one group of interested stakeholders to another.
The government is not alone in this indecisiveness either. Several stakeholders themselves have changed their positions, especially around the inclusion or exclusion of a conditional access system. Broadcasters and manufacturers are unable to reach any kind of agreement over access control, and government appears to be caught up in the middle.
Perhaps this explains why South Africa is five years behind schedule with digital migration. We have until June next year to meet the ITU deadline to complete our migration. To put this into perspective, Zimbabwe and Rwanda, for example, are ahead of the curve and ahead of us. We are so far behind because ANC policy indecision has created unrealistic expectations and thumbsucked numbers on job creation. All of this is pie in the sky.
We have a government terrified of litigation from stakeholders who've invested time, money and energy in gearing up for DTT based on policies and proposals that have changed more often than the number of Communications Ministers, and that's a lot. While a tender for set-top boxes was issued, changes in the strategy meant this tender fell away and no new tenders have been called for.
Now, I am not going to weigh in on the side of a control mechanism or not, or on issuing a tender for set-top boxes or not, because, frankly, I am not the Minister and I am not the government. [Interjections.] My maiden speech. That's your job, Minister. It is what you're being paid to do.
When danger threatens, there are three ways people respond: fight, flight or freeze. Like a rabbit in the headlights, this government appears to have frozen. You, Minister, have to make a very tough decision, and it's tough because it is very clear that, no matter what you decide, you're not going to keep or make every party happy. You are going to have at least one stakeholder that is exceptionally unhappy, no matter what you do. There is no win-win solution. Accept that reality.
What is non-negotiable, though, is that South Africa has to migrate to DTT to meet our obligations by June 2015. It is also non-negotiable to ensure that no one is excluded from receiving signals and is cut off, even if it is only from the 70% good news dished out by the controversial Hlaudi Motsoeneng, the Goebbels of the SABC, with his self-awarded matric, and his partner in claiming unentitled qualifications, the SABC chairperson, Ellen Tshabalala. Perhaps it is not so difficult to see why his appointment was made permanent. If you do not have qualifications at the SABC, you simply make them up! [Laughter.]
In March this year former Minister Carrim said, and I quote:
This bickering has to stop. We need to move forward swiftly in the interests of the country.
Swiftly indeed – we've only got nine months left. It is eight months if we take away the month you will need to gazette an amended policy, and there are five months for you to designate the date of the start of the switch-on.
The DA is excited about DTT. We are excited because we support broad-based black economic empowerment and the benefits of economic inclusion that the roll-out of DTT infrastructure holds for all our people. The time has come ... [Interjections.]
The TEMPORARY CHAIRPERSON (Mr J M Mthembu): Hold on, hon member. Hon members, we have no problem with your interjecting, but stopping the member from debating is not helpful. Member, you have two minutes left.
Mr C MACKENZIE: Thank you, Chairperson. The time has come to reissue the tender for STB manufacture and ensure that the companies chosen have the existing capacity and capability to do so to a high standard, on time, and with the right quality.
We trust that the delay in reissuing the tender has nothing to do with awarding tenders to tenderpreneurs or crony networks of connected individuals – rest assured the DA will be monitoring this process very closely.
The ANC promised six million job opportunities as part of their election manifesto. Well, this is one way you can start to deliver on that promise. The real job creation lies in the distribution, installation and maintenance of set-top boxes, aerials and dishes. So, issue the tender and have them made!
Former Minister Carrim also said government was "extremely close" to making a decision about how to proceed, even if final consensus could not be reached. Well, four months later, with a new Minister and a split department, where until yesterday we did not know which state-owned enterprise belonged where, you are now a little bit closer to making that decision.
While we South Africans love to leave things to the last minute, including our driver's licence renewals and our tax returns, the fact is that if you don't decide, and decide now, you'll be breaking an international treaty; you'll be damaging our reputation internationally; and you'll be denying our people access to opportunity, employment and programming.
You have some hard choices to make Minister - and to carry on flip-flopping on policy is not one of them. Make the decision, stick with it, make the call and make it happen. Thank you very much. [Applause.]
Ms D R TSOTETSI
Mr C MACKENZIE
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 18
Ms D R TSOTETSI: Hon Chairperson, Ministers, members and guests, together with the officials and stakeholders, I think it is important that I start with hon Ndlozi before my time is up.
Hon Ndlozi, we cannot move at speed when the DA still hoists the flag of resistance to transformation of the country, and other black people do not understand themselves. We must also tell the truth that under the leadership of the bitter, sugar-coated National Party cover, the DA, you wouldn't be where you are and exercising your freedom of speech. [Interjections.]
A good leader will explore all avenues in governance to develop the country, while intensifying processes for skills development. This is so that in future you can nationalise certain areas, having armed yourself with the necessary skills.
Economic dynamics dictate situations of supply and demand and competitive advantage; hence the need to import in certain areas. We can assure hon members that there are goods which are being exported by South Africa to other countries. Our role is to exercise patience and acquire skills which will enable us to import less and export more, whilst such situations as you complain about are not far in the future but here.
Hon Ndlozi, young as you are, you need to show as an African that you respect any adult. Whoever thinks it is a joke to lose the father of one's children, should feel ashamed of himself, because he has been put through in his own country.
Hon Mama Winnie Mandela's ancestors did not come to Africa but had their roots in Africa, and those who share with her that history will sympathise with her. Those whose ancestors had no roots in Africa, but came to Africa, will rejoice at her situation. We are not ashamed of fighting for the land of our ancestors, but I think they have actually overstayed their welcome in our country. [Interjections.] How ungrateful! Hon members should express their thanks that the hon member Buthelezi is not here in this House. He would teach you a lesson or two about African culture.
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon member Tsotetsi, there was a hand up, and I am not sure whether the hon Ndlozi has a point of order.
Mr M Q NDLOZI: No, it is not ... [Inaudible.] [Laughter.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon Tsotetsi, it does seem it wasn't hon Ndlozi.
Ms D R TSOTETSI: Through you, hon Chair, I wish to say this to the hon Ndlozi. The reason why I said I wanted to start with you is because someone spoke before you and I wanted to address the matter of the comment, the silly comment, that was made about Mama Winnie Mandela. So, that is part of my response to you. That is why I said I wanted to start with you, before my time was up, so that I could address that issue. It is not you. [Interjections.] You are confused, not me. You don't feel ashamed of yourself for rejoicing at other people's situations. Anyway, it is of your making, and that is why you are not worried about that.
My subject this afternoon is ICT infrastructure, which is key to development.
It is important to give a brief background of where we come from as a country with respect to information and communications technology. Some of us still remember the dark days – and some were not yet born then – when we used tape recorders, floppy discs and typewriters. This brief background will show how far the government has moved in socioeconomic policies which are intended to improve the quality of life in South Africa.
Letter writing was the main ... [Interjections.] You shut up! Letter writing was the main means of communication.
Mr G R DAVIS: A point of order, Chair.
Ms D R TSOTETSI: In urban areas the letter would take a week or two.
The HOUSE CHAIRPERSON (Ms A T Didiza): Can you stop a moment? There is a point of order.
Mr G R DAVIS: I would just like the Chair to rule on whether it is parliamentary to tell another hon member to shut up.
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon member, it is not unparliamentary. [Interjections.] Hello! [Interjections.] It is unparliamentary. I am sorry! Hon Tsotetsi, can you please withdraw it?
Ms D R TSOTETSI: Chair, I withdraw my statement and I will learn to respect others. [Interjections.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon Tsotetsi, ...
Ms D R TSOTETSI: I did, Chair.
The HOUSE CHAIRPERSON (Ms A T Didiza): ... can you please withdraw it? [Interjections.] Oh, she did withdraw it. [Interjections.]
An HON MEMBER: Your mic wasn't on.
Ms D R TSOTETSI: It was on.
Letter writing was the main means of communication in urban areas. The letter would take a week or two, sometimes three weeks, to reach its destination. There was also the telegram, instead of which we use the SMS today. One would take a journey to the post office to send the telegram. In most rural areas letters would be delivered from the post office in town to schools or stores – and we know what the rural roads are like. Possibly the letter could take even more than a month.
All these horror stories took place during the apartheid regime. As we roll up our sleeves to develop South Africa, it must be taken into consideration that in the 20 years we are celebrating there has been baggage of resistance to transformation.
An HON MEMBER: Oh, nonsense!
Ms D R TSOTETSI: We started with the Government of National Unity. What is nonsense?
An HON MEMBER: Your history lesson.
Ms D R TSOTETSI: We started with the Government of National Unity as part of the effort to alleviate fears of terrorism, as we were perceived as terrorists.
The second five years were also difficult, as the ANC government found the country in debt and had to be creative and formulate mechanisms for damage control.
After 1994 development gradually kicked in, and with the march of time there came a need to accelerate as far as information and communications technology infrastructure was concerned.
South Africa is no longer isolated internationally, but embraced. Can we applaud the ANC-led government for that? [Applause.]
The development of ICT infrastructure is the hub of our national development agenda. Let us take cognisance of the fact that our Ministry is newly established. Therefore our role requires a more rapid application of programmes of action. We need a wider range of technologies to assist our organisation in running more efficiently.
Our Ministry is tasked with raising the Telecommunications and Postal Services sectors to a higher scale of operation. Bearing in mind that our country's Telecommunications sector is growing at a rapid rate, estimated at R179 billion in 2011, it is expected to reach R187 billion by 2016. The services targeted, which are essential to everyday mechanics and integral to effective service delivery, include hardware, software, networking, and implementation. If only we can account for all these figures.
Chair, with regard to digital migration, allow me to reflect on the recent speech delivered by our hon Minister, Mr Siyabonga Cwele, of the Department of Telecommunications and Postal Services, at the African Telecommunications Union Plenipotentiary Conference in Harare. Amongst other important issues, he confirmed that our ICT Policy Review process is under way, and we hope to finalise the process in the current financial year.
We also agree with the International Telecommunication Union focus on the importance of broadband to accelerate the economic and development prospects of our country and region.
The policy review process aims to promote access to ICT services, which will also strengthen collaboration between the ICT sector and other service sectors, such as banking, commerce and agriculture, and other new services. I am just rushing because my time is short.
As regards the impact of ICT infrastructure on education, the Government Gazette of 24 January 2014 refers to a panel whose mandate is to review the policy and ensure that South Africans have the following rights. According to the National Integrated ICT Policy Green Paper:
South Africans have a right to access a diverse range of information, opinion and news of relevance to their communities and lives; ...
South Africans have a right to equitable universal access to communication infrastructure and services; ...
South Africans are entitled to communication services that reflect, respect and uphold community standards (as well as our culture) and values in accordance with the constitution;
South Africans have a right to privacy and to protection of personal information;
It is unfortunate that ICT development is being abused and people's privacy is being tampered with. Criminal activities are also being masterminded through this development. However, we must never lose hope, but continue mobilising for the good, and for the best utilisation of ICT.
Agencies such as Ikamva National e-Skills Institute and Manas Design and Detail are playing their part in skills development, the creation of small, medium and micro enterprises, and job creation.
I would now like to refer to hon Shinn before my time is up. There is no confusion in the ANC; hence the continuous support for it nationally and internationally. The percentage that you are making a noise about doesn't change the fact that South Africa is led and governed by the ANC.
Your divide and rule attitude of singing songs of praise to some Ministers at the expense of others is mere repetition. You are repeating a song, but it is a recitation without memory.
Moreover, you have only read and heard about the previously disadvantaged communities; hence your continuous discrimination. You have never been committed to their plight and their development, and you will never ever be committed to them, because you are running after their cheap labour. You still have the mindset that quality lies only under a white skin. What a daydream!
If the DA is the party to associate with, why were you isolated internationally? You must thank this democratic government that you are accepted again under the leadership of the ANC. [Applause.]
Then, to the hon Khubisa, all the programmes of government in all the departments have as an obligation job creation – both casual and permanent. However, we strive for decent, permanent jobs. I must honour you for reminding us to fast-track this, but make time to go through all the departments of the government; you will get tired of reading about job creation, job creation, job creation. It is there.
Hon Madisha, I sympathise with you for not having enough time to try to appeal again to people to consider Cope in the next national elections. Hon Madisha, my former comrade, reconsider whether you will stay in Cope, because the fact of the matter is that Cope is not coping, and neither are you. [Interjections.]
Hon Mackenzie, your short memory, forgetting the names of other parties, is noted. ICT will assist you – you just google and you will remember who governs South Africa.
South Africa is alleged to be five years behind, because of your resistance to transformation. It is true that you are not governing South Africa and that will never ever change. You had your time to govern South Africa and you messed up. So, you won't get that chance again. [Interjections.]
On qualifications, in my previous life I worked for the Department of Transport in Gauteng. We had directors ... [Interjections.] ... whose qualification was Std 8. The "Std 8" was written in Afrikaans – "st 8". They were directors. Others would resign, only to come back as consultants for the same departments. [Interjections.] You are the ones who damaged your reputation internationally and not in South Africa. [Interjections.]
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon members, let's allow the speaker to speak.
Ms D R TSOTETSI: It is not the ANC that tarnished your image internationally. You were isolated because of the manner in which you were governing. You were a racist regime and you were discriminating and you are still doing that.
On the other hand, Chairperson, let me just reiterate the position of this ANC-led government. The 53rd National Conference of the ANC identified the ongoing problems facing South African society.
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon Tsotetsi, your time has expired.
Ms D R TSOTETSI: Chairperson, can I have one more minute? [Interjections.] I am not your maid! Be careful how you talk to me. [Time expired.] [Applause.]
The MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES
Ms D R TSOTETSI
UNREVISED HANSARD
EPC – COMMITTEE ROOM E249
Wednesday, 16 July 2014 Take: 19
The MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES: Hon Chairperson, I would like to begin by thanking all the members who participated in this debate for their support and valuable inputs.
I will make sure that Comrade Madisha and I have tea together so that I can give him information and clarify some of the things that seem to be troubling him. I am sure that after my explanation he will be able to understand where we are going.
Hon Kubayi, the chairperson of the committee, stressed the importance of the massification of e-skills. I think this is going to be a very important programme for all our citizens. It does not refer only to high skills. It is only when people are able to utilise ICT facilities that we can increase the demand for them. It is for this aspect that, with our meagre budget, we will continue to try to get more resources, and at the same time collaborate with other educational institutions to massify e-skills.
Currently, we have a programme which includes four universities in this country. I think we will learn a lot from it, particularly because it is a distance e-learning programme, where people can acquire these skills without going to the institutions themselves.
It also opens opportunities for our youth to be involved in these e-sectors if they acquire the skills for their own development, as well as all other marginalised sectors of our society, including women and small enterprises, particularly rural enterprises. In other countries like India we have seen how their rural farming communities have just been transformed by the use of information and communications technologies.
In South Africa we have a huge informal sector, and these people are trading on a daily basis. Ikamva National E-skills Institute is involved in this sector to develop informal ICT applications, because applications can only work if they are developed to solve local problems. This is so that we can assist this sector to grow and be part of the formal sector of the economy.
With regard to the broadband roll-out in Cape Town, of course we welcome the roll-outs of the broadband plan which are being done by all the provinces. What is key here is that I think you should have been honest, like your Premier Zille, who thanked the State Information Technology Agency for actually running this programme and getting it operational. [Interjections.] We welcome the programme, but if we check it in terms of scale, it is really nothing compared to what the Gauteng government is doing. [Interjections.]
An HON MEMBER: There is nothing there.
The MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES: Yes, they do have the plans and they are implementing them for the programme. [Interjections.]
But what is critical is what some members have been saying, that in the rolling out of all these plans, by the cities and the provincial government, we must make sure that the plans correspond with the South Africa Connect broadband policy, which has been agreed to.
A lot of members talked about the issue of digital migration. There seemed to be general agreement, and I fully agree with hon Shinn here, that we should not allow broadcasters to stall this process. Most of the consultations that have been taking place have been involved in trying to get consensus among the broadcasters. I think the draft amendments which were put were trying to accommodate all the broadcasters. Those who want to use the set-top box control must use it, and those who don't want to use it, mustn't. But the set-top box control has important functions. We don't want dumping of these cheap foreign products on the South African market.
We want particularly to increase ICT electronics manufacturing in South Africa. This is very important because, if you check statistics, while there has been growth in job numbers in the sector, when we it comes to electronics the job numbers have been decreasing. This brings me to the point, hon Ndlozi, that we are saying that we cannot afford to continue importing these things on the present scale when there is an opportunity to manufacture them locally, and ultimately assist with transforming this sector and bringing new entrants and black industrialists into the sector.
With regard to the reorganisation of the state, I tried to explain this in my input. There is no confusion in the ANC, although there may be confusion elsewhere. Let me explain this again. The purpose of reconfiguring the state is to ensure a focused approach by this new department so that we can achieve the objectives we have set out to achieve in what we have all agreed on, the targets of the National Development Plan. It is not about reversing the global processes of convergence or causing confusion to the regulator – the regulator will always be there.
An HON MEMBER: Reporting to whom?
The MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES: Reporting to whom? That is the question.
An HON MEMBER: Yes!
The MINISTER OF TELECOMMUNICATIONS AND POSTAL SERVICES: On that question, it will report to the ANC government, ... [Interjections.] ... because we have one ANC government. [Interjections.]
Who will direct digital migration? It will be the ANC government, because we act collectively as the ANC government. [Interjections.] We are not a federal party; we are one national government, which acts collectively. [Interjections.]
Lastly, before they make me deaf, I think hon Mabe's dream of free voice calls is not too far-fetched. In the not so distant future, we really believe that once we have increased this infrastructure roll-out, we will have many entrants competing, and we will do like other countries are doing, where voice calls are free and people are competing on data, because the demand will be for data.
Thank you very much for supporting the Budget Vote. [Applause.]
Debate concluded.
The Committee rose at 16:16.
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