Hansard: NCOP: Policy debate on Budget Vote 34: Trade and Industry
House: National Council of Provinces
Date of Meeting: 20 May 2015
Summary
No summary available.
Minutes
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCE
Wednesday, 20 May 2015 Take: 29
WEDNESDAY, 20 MAY 2015 A 39
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
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The Council met at 14:04.
The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayer or meditation.
RULING
START OF DAY
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RULING
The DEPUTY CHAIRPERSON (Mr R J Tau): Order! Hon members, you will remember that on 13 May 2015 I undertook to come back to the House to make a ruling on motions that were presented to the House. The ruling that I would like to make is regarding the points of order raised against the motions moved by hon Londt and hon Mathys during the motion sessions of 13 May 2015.
With regard to the contents of the two motions, I would like to rule as follows: Council Rule 75(2) provides that a draft resolution proposed for approval by council may not in substance be the same as a draft resolution that was approved or rejected by council during the preceeding six months.
Further, Rule 76 provides that no amendment to a draft resolution may be proposed, except an amendment on a question of privilege, to replace the name of a member on the draft resolution with a name of another member, or if allowed by the presiding officer.
The motion moved by hon Londt on 13 May 2015 was in substance the same as the one moved by him the day before - that was on 12 May 2015 - with the addition of calling for a debate by the House. This addition is in effect an amendment to the motion that was moved on 13 May 2015.
In terms of Rule 76 referred to above, an amendment to a motion will only be allowed in the circumstances enumerated in the Rule. Given that the motion was firstly not proposed as an amendment, and, secondly, if it had been proposed as an amendment, it does not meet the requirements of Rule 76. The motion is therefore in contravention of Rule 76.
The same ruling applies to the motion moved by hon Mathys on 13 May 2015, as it was in substance the same as the motion moved by hon Michalakis on 12 May 2015.
I therefore rule both motions in contraventions of the Rules and, as such, out of order. The two motions will therefore not be proceeded with.
NOTICES OF MOTION (Mr H B GROENEWALD)
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RULING
NOTICE OF MOTION
Mr H B GROENEWALD: Chairperson, I hereby wish to give notice that on the next sitting day of the Council I shall move:
That the Council-
- notes the ranking of South Africa in the bottom third of 124 countries examined by the World Economic Forum in the first Human Capital Report that examines which countries best nurture and develop the skills of their people and use them most effectively;
- further notes that the report argues that countries that optimise their human capital see higher levels of economic growth; that is, it is less about the money a country has and more about harnessing the innate potential of its people;
- accepts that there are no easy short-term fixes and, more worryingly, no long-term solutions unless our classrooms are sorted out;
- acknowledges that it is unacceptable that the progression principle puts learners through to a next grade phase without them mastering the necessary skills first; and
- further acknowledges that this action from our Department of Basic Education will only lead to the disadvantage of learners.
MOTIONS_WITHOUT_NOTICE (Ms E C VAN LINGEN)
NOTICE OF MOTION(Mr H B GROENEWALD)
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BRENTON WILLIAMS, SA’s INTERNATIONAL SWIMMING CHAMPION:
(Draft Resolution)
Ms E C VAN LINGEN: Chairperson, I move without notice on behalf of the DA:
That the Council-
- notes that Brenton Williams, a DA councillor from Jeffrey’s Bay and world-class endurance swimmer, was the first person in the world to swim the butterfly stroke from Cape Town to Robben Island and the first person in the world to swim the butterfly stroke around Cape Point;
- further notes that he holds the South African record for the longest open water butterfly swim of 17 km;
- also notes that he was nominated for the World Open Water Swimming Association performance of the year 2012 and named one of the top 50 adventure swimmers in the world, having also completed a daring swim around South Africa’s Cape St Francis and Cape Recife;
- also notes that his record-setting performances have long been recognised by his small number of peers and the global open water swimming community; and
- congratulates Brenton Williams on his two world records for this and for holding South Africa’s name high among the international open seas adventure swimming fraternity.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
Mr E MAKUE
Ms E C VAN LINGEN
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TWO POLICE OFFICERS ARRESTED FOR ALLEGEDLY SOLICITING BRIBE
(Draft Resolution)
Mr E MAKUE: Chairperson, I move without notice on behalf of the ANC:
That the Council-
- notes that two police officers, who allegedly solicited a bribe from a man who was on his way to sell scrap metal, were arrested on Monday;
- further notes that the two police officers were on duty near Alexander when they allegedly threatened the man with arrest;
- also notes that they demanded R2 000, which was handed to them, and they were arrested by members of the Bramley SA Police Service, who were on a routine visit to second-hand goods shops in the area; and
- condemns this kind of behaviour from those responsible for maintaining law and order, and hopes that the justice system will deal with them accordingly.
Motion accordingly agreed to in accordance with section 65 of the Constitution
Ms P C MQUQU
Mr E MAKUE
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NOMINATION OF DANNY JORDAAN AS MAYOR OF NELSON MANDELA BAY
(Draft Resolution)
Ms P C MQUQU: Chairperson, I hereby move without notice on behalf of the ANC:
That the Council-
- notes that the president of the SA Football Association, Mr Danny Jordaan, has been nominated by the ANC as the new mayor for Nelson Mandela Bay Municipality;
- further notes that Mr Jordaan, who hails from Port Elizabeth and who was instrumental in securing the Fifa 2010 World Cup, has been selected to replace the current mayor;
- also notes that the new leadership of the municipality will be tasked with focusing on these critical areas, namely housing, water and sanitation, and public transport; and
- wishes him and his team well in their endeavour to accelerate service delivery to the people of Nelson Mandela Bay and thank the outgoing councillors for their dedication and commitment.
The DEPUTY CHAIRPERSON (Mr R J Tau): Order! Is there any objection to the motion? [Interjections.] In light of the objection, the motion shall not be proceeded with and will rather be treated as a notice of motion.
Ms L L ZWANE
Ms P C MQUQU
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PAROLED BONGANI ENOCH NXUMALO KILLED HIS NEW LOVER
(Draft Resolution)
Ms L L ZWANE: Chairperson, on behalf of the ANC I hereby move without notice:
That the Council-
- notes and welcomes the life sentence given by the Pietermaritzburg High Court to Bongani Enoch Nxumalo for having brutally murdered his new girlfriend;
- also notes that Nxumalo was only paroled four months ago for having attacked his lover, and that he killed his new lover by hacking her with a bush knife;
- further notes that Nxumalo and Albertina Mlambo had made contact with each other via WhatsApp while he was serving an eight-year sentence for the attempted murder of a previous lover;
- also notes that Nxumalo noticed WhatsApp messages on Mlambo’s cellphone, which indicated that she was communicating with other men;
- also notes that he convinced Mlambo that she needed to perform a cleansing ceremony and lured her to a nearby bush;
- further notes that he was armed with a bush knife and carried a container of water. As she knelt down, Nxumalo struck her several times with the bush knife and, having chopped her up like a piece of wood, he hid her body under some shrubbery and fled the scene;
- calls on the department of correctional services to put some stricter measures in place to combat the use of cellphones by inmates;
- and calls on the parole system of South Africa to closely screen parole applications before granting parole to eliminate these kinds of incidents.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
Ms T J MOKWELE
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Ms L L ZWANE
90TH ANNIVERSARY OF CIVIL RIGHTS AND BLACK NATIONALIST LEADER MALCOLM X
(Draft Resolution)
Ms T J MOKWELE: Chairperson, on behalf of the EFF I move without notice:
That the House-
- notes that 19 May is the 90th anniversary of civil rights and black nationalist leader Malcolm X;
- also notes that brother Malcolm X was an articulate, passionate and gifted inspirational orator who insisted that black people cast off the shackles of racism by any means necessary, including through revolutionary violence, in self-defence against the racist superstructure of American society;
- further notes that Malcolm X’s legacy as a civil rights hero was cemented by the retrospective publication in 1965 of The Autobiography of Malcolm X as told to Alex Haley;
- acknowledges that in making a case for black independence, he invoked and then revoked the Founding Fathers’ social contract, exposing the disguised hypocrisy that was at the origins of American democracy.
- further acknowledges that that hypocrisy continues to plague us today in the ways that the state and compliant corporate media narratives legitimise violence against black lives and other marginalised people;
- also acknowledges that Malcolm X’s greatest contribution to society was emphasising the value of a truly free people by demonstrating the great lengths to which human beings will go to secure their freedom;
- appreciates that almost half a century after his assassination, Malcolm’s unapologetic insistence on black liberation, human rights and dignity still resonates around the world; and
- takes courage in his spirit in our pursuit for economic freedom in our lifetime.
The DEPUTY CHAIRPERSON (Mr R J Tau): Order! Is there any objection to the motion? [Interjections.] In light of the objection the motion shall be treated as a notice of motion.
Ms E PRINS
Ms T J MOKWELE
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BRUTAL MURDER OF FIVE-YEAR-OLD IN BOKSBURG
(Draft Resolution)
Ms E PRINS: Chair, I move without notice:
That the Council-
- notes that a five-year-old boy was stabbed several times by hijackers in Boksburg on Sunday, 17 May 2015;
- further notes that the father was hijacked by three men in Trichardt Road when he stopped at a robot, that they pointed a firearm at him, pushed him out of the car and drove away with the vehicle while the child was inside;
- also notes that the vehicle was later found abandoned and the child lying on the ground with stab wounds;
- condemns the barbaric actions of these criminals; and
- appeals to the police to do everything in their power to arrest the criminals.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
Mr C J De BEER
Ms E PRINS
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CONGRATULATIONS ON SUCCESSFUL OUTCOME OF SALARY NEGOTIATIONS
(Draft Resolution)
Mr C J DE BEER: Chairperson, I hereby move without notice:
That the Council –
(1) notes and commends the government on having sealed an agreement with the unions on Tuesday, 19 May, after lengthy and hard negotiations;
(2) admits that this agreement is a great move and that a potential crippling strike by 13 million workers was averted;
(3) concurs that the total pay increase therefore comes to 7%, along with an agreement that if the average inflation rate is higher than 4,8%, the difference will be added to next year’s increase;
(4) realises that, similarly, pay increases will be reduced should inflation fall below the current estimate;
(5) regrets that despite union demands to negotiate on an annual basis, the agreed offer remains in place as a three-year deal and this agreement will, however, exacerbate the wage gap in the Public Service, something the unions have pledged to close;
(6) accepts that in a fairly complex arrangement, the housing allowance has been increased to R1 200 and the rental allowance to R900;
(7) admires that the employer’s medical aid contribution, which was unchanged for the past three years, will now be increased by 28,5%; and
(8) congratulates our government and the unions on their successful talks.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
Ms N P MOKGOSI
Mr C J DE BEER
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INCONSISTENCY IN APPLYING RULES OF PARLIAMENT
(Draft Resolution)
Ms N P MOKGOSI: Chairperson, I hereby move without notice on behalf of the EFF:
That the Council –
(1) notes the inconsistency of the chairpersons of portfolio committees of Parliament in applying and enforcing the rules of Parliament;
(2) acknowledges that Parliament is the highest expression of the will of the people, which must uphold the Constitution of the Republic and be seen to be creating a better society, free of discrimination;
(3) regrets the manner in which rules of the NCOP are inconsistently applied and enforced by the chairpersons in the committees and in the plenary sessions;
(4) warns that if the rules are applied inconsistently depending on who has violated them, they lose their essence and value;
(5) recognises that there have been a number of times in which the rulings made by chairpersons were inconsistent and depended on which member violated the rules, for example last week during the question session to the President, in which the President repeatedly referred to a female member as a “he” but was never asked to withdraw by the chairperson;
(6) declares that this arbitrary application of the rules is inconsistent with the spirit of the Constitution and the rules, which guarantees equality before the law;
(7) observes with disgust the unbecoming behaviour of ANC members, including the chairperson of the committee, in the National Assembly Portfolio Committee on Justice towards the Public Protector, in defence of the President;
(8) condemns the unfair and inconsistent application of the rules of Parliament;
(9) reaffirms that all members of this House are equal, regardless of their political affiliation, and the rules must apply equally.
Ms T G MPAMBO-SIBHUKWANA
Ms N P MOKGOSI
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MOTION OF CONDOLENCE
(The late Ruth Mompati)
Ms T G MPAMBO-SIBHUKWANA: Chairperson, I move without notice on behalf of the DA:
That the Council –
(1) notes the passing of the struggle veteran Mme Ruth Mompati at the age of 89 in the early hours of 12 May;
(2) acknowledges that Mme Mompati, an educator by training, served as a member of the first democratic Parliament in the National Assembly, and later as SA ambassador to Switzerland;
(3) expresses its gratitude to Mme Mompati for her contribution to our freedom and our democracy after the fall of apartheid.
[Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): Order! Hon members, the Council has just passed a motion on consistency in terms of the application of the rules. I mean, as far as I have been informed, the Whippery has agreed that there will be a session for condolences.
Ms E C VAN LINGEN: [Inaudible.]
The DEPUTY CHAIRPERSON OF THE NCOP: No, no, no, I will not consider that comment as a serious one.
Ms B G NTHEBE
Ms T G MPAMBO-SIBHUKWANA
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SA AIRLINES AND DTI SIGN MEMORANDUM OF UNDERSTANDING
(Draft Resolution)
Ms B G NTHEBE: Chairperson, I move without notice on behalf of the ANC:
That the Council –
(1) notes that SA Airlines and the Department of Trade and Industry have signed a Memorandum of Understanding, which is aimed at addressing the inclusion of black industrialists in the aviation supplier industry;
(2) declares that this is a step towards a broad procurement strategy by all state-owned enterprises and government departments to incrementally set procurement targets that will boost the entrepreneurial efforts of black industrialists;
(3) agrees that the move came in support of the SAA board’s resolution to accelerate its enterprise development programme and focus on inclusive opportunities for black-owned, women-owned, disabled and youth-owned businesses;
(4) congratulates the SAA and the DTI on the milestone that they have achieved and hopes that this will encourage other government departments to follow suit.
Mr D STOCK
Ms B G NTHEBE
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CONGRATULATIONs TO MANGO AIRLINE
(Draft Resolution)
Mr D STOCK: Chairperson, on behalf of the ANC, I hereby move without notice:
That the Council –
(1) notes and commends Mango airline for being named as one of the top 10 low-cost carriers in the world by influential travel site Travelmath;
(2) acknowledges that Mango keeps up with some of the world’s biggest brands in low-cost travel, including Virgin America, EasyJet, Southwest and Tiger Air, among others;
(3) recognises that Mango was ranked ninth in the world and is the only African low-cost airline on the list;
(4) appreciates that Mango was last week voted the coolest low-cost airline in the Sunday Times Generation Next Awards, and last year was named the African low-cost airline of the year in the Skytrax World Airline Awards; and
- congratulates Mango airline and best wishes in its determination and continued pursuit of excellence.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
Mr D L XIMBI
Mr D STOCK
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SEARCH FOR 25-YEAR-OLD TARO SPIES FROM MUIZENBERG
(Draft Resolution)
Mr D L XIMBI: Chairperson, on behalf of the ANC, I hereby move without notice:
That the Council –
(1) notes with concern that the search for 25-year-old Taro Spies from Muizenberg continued in a scaled-down format on Table Mountain, marking the seventh day of searching since he disappeared while on a hike;
(2) realises that his car was found on Tafelberg Road by workers last Wednesday morning;
(3) regrets that it is believed that Spies, an active and fit person, had parked his car and gone hiking;
(4) wishes that the search team would come up with anything additional and notes that the Mountain Club of SA regards this as one of the largest searches they have done in terms of resources, the length of time and the number of people involved;
(5) acknowledges that they had ransacked various parts of Devil’s Peak, the Twelve Apostles, Orange Kloof in Hout Bay and the lower slopes of Vredehoek but in vain; and
- pledges that our prayers are with Mr Spies’s family and friends, and wish the team success in their search.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
MOTION ON ORDER PAPER - The ACTING CHIEF WHIP OF THE NCOP
MOTIONS WITHOUT NOTICE
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AMENDMENT TO ORDER PAPER
(Draft Resolution)
The ACTING CHIEF WHIP OF THE NCOP: Deputy Chairperson, I move:
That the Order Paper be amended by the insertion of Order Number 9: “Oration of condolences on the passing of Dr Ruth Segomotsi Mompati – a tribute to an icon of the struggle of the liberation of the South African people”.
Question put: That the motion be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Motion accordingly agreed to in accordance with section 65 of the Constitution.
First order
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MOTION ON ORDER PAPER
Consideration of Report of select committee on finance – agreement between government of republic of South Africa and government of the state of qatar for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, with explanatory memorandum
Consideration of Report of select committee on finance - agreement between government of republic of South Africa and government of Hong Kong special administrative region of people’s republic of china for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, with explanatory memorandum
Consideration of Report of select committee on finance - agreement between government of republic of South Africa and government of kingdom of lesotho for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, with explanatory memorandum
Consideration of Report of select committee on finance - agreement between government of republic of South Africa and government of granada for exchange of information relating to tax matters, with explanatory memorandum
Consideration of Report of select committee on finance - Protocol amending agreement between government of republic of South Africa and government of republic of Cuprus for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital with explanatory memorandum.
Consideration of Report of select committee on finance - convention between government of republic of South Africa and government of republic of cameroon for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, with explanatory memorandum
Mr C J DE BEER: Deputy Chairperson, South African has agreements with the following countries for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income: the Republic of Cameroon, the Kingdom of Lesotho, the Republic of Cyprus, the State of Qatar and the Hong Kong special administrative region of the People’s Republic of China.
When we look at the government of Granada, the agreement with that government is for the exchange of information relating to tax matters, which is a bit different but I will highlight that later. These are five different agreements; however, they are grouped together because they share a common area of focus, namely the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The interaction between tax treaties and domestic law is based on section 231(1), (2) and (3) of the Constitution. These refer to the signing and negotiation of all international agreements, which is the responsibility of the national executive. This binds the Republic, once approved by Parliament - that is, the National Assembly and the National Council of Provinces - and becomes law in the Republic when it is enacted into law by national legislation.
There is also an interaction with section 108(2) of the Income Tax Act. The objective of these agreements is to outline and clarify principles on how different incomes are to be taxed by the contracting parties. Tax incomes range from business profits, dividends and royalties to pensions, etc. A mutual agreement procedure for difficulties arising out of the application of the agreement will be set and the competent authorities of the two states are authorised to resolve, by mutual agreement, any problems relating to the interpretation and application of the agreement.
The competent authorities are to communicate directly with each other for reaching mutual agreement in respect of any of these matters. Also, the contracting states will lend each other assistance in the collection of revenue claims, but most importantly, the agreement shall remain in force for a minimum period of five years, after which it may be terminated by a contracting party giving written notice.
Chairperson, I now refer to the exchange of information relating to tax matters between the government of South Africa and the government of Granada. The main aim of this tax information exchange agreement is to encourage the exchange of information and to clarify procedures and processes in place that will allow the efficient exchange of tax-related information between South Africa and Granada.
The agreement deals with the objective, scope, jurisdiction and tax covered. The two countries are expected to provide assistance to each other by exchanging information with regard to the taxes covered in the agreement. These taxes can be identical or similar taxes charged in both countries. This should be done in a transparent, confidential and efficient manner.
Furthermore, any information given should be relevant and accessible, so that countries are able to assess, enforce and collect tax from implicated parties. The agreement stipulates that the confidentiality of information is necessary to protect the legitimate interests of taxpayers. It is worth noting that indirect costs in providing assistance would be borne by the requested party and direct costs by the requesting party. This agreement will remain in force until terminated by either party.
Chairperson, I table this report for consideration by the House. Thank you. [Applause.]
Debate concluded.
Question put: That the Reports be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report on Agreement between the Government of the Republic of South Africa and the Government of the State of Qatar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with Explanatory Memorandum accordingly adopted in accordance with section 65 of the Constitution.
Report on Agreement between the Government of the Republic of South Africa and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with Explanatory Memorandum accordingly adopted in accordance with section 65 of the Constitution.
Report on Agreement between the Government of the Republic of South Africa and the Government of the Kingdom of Lesotho for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with Explanatory Memorandum accordingly adopted in accordance with section 65 of the Constitution.
Report on Agreement between the Government of the Republic of South Africa and the Government of Grenada for the exchange of information relating to tax matters with Explanatory Memorandum accordingly adopted in accordance with section 65 of the Constitution.
Report on Protocol Amending the Agreement between the Government of the Republic of South Africa and the Government of the Republic of Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on Capital with Explanatory Memorandum accordingly adopted in accordance with section 65 of the Constitution.
Report on Convention between the Government of the Republic of South Africa and the Government of the Republic of Cameroon for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with Explanatory Memorandum accordingly adopted in accordance with section 65 of the Constitution.
SEVENTH ORDER - CONSIDERATION OF AUDITING PROFESSION AMENDMENT BILL
FIRST TO SIXTH ORDERS
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AUDITING PROFESSION AMENDMENT BILL
(Consideration of Bill and of Report thereon)
Ms T MOTARA: Hon Deputy Chairperson, the Auditing Profession Act, Act 20 of 2005, provides for the regulation of the auditing profession by establishing the Independent Board for Auditors, the IRBA. The IRBA is responsible for the registration of individuals and firms as auditors for purposes of proctoring the audit profession.
From 2014, all first-time candidates wishing to write the final assessment for qualification as chartered accountant will be required to write the assessment of professional competence of the SA Institute of Chartered Accountants.
Act 20 of 2005 currently does not regulate candidate auditors. This amendment is necessary so that all aspiring registered auditors are under the jurisdiction of the IRBA.
The principal objectives of the Bill are, firstly, to provide for the regulation of candidate auditors by the IRBA; and secondly, to update references to the Companies Act in the Act.
The main features of the proposed amendments regarding the regulation of candidate auditors are the following: Firstly, to define a registered candidate auditor as an individual who has obtained a professional accountant designation from an accredited professional body that has been assigned accreditation; who is registered as candidate auditor with the regulatory board; and who is serving under the supervision of a registered auditor.
The second feature is to include candidate auditors in the requirements for registration and to put them under the responsibility of the IRBA in matters of discipline in order to ensure the protection of the public in the work they do.
The third feature is to give registered candidate auditors the opportunity to gain exposure in practise to a broad range of issues faced by registered auditors before the candidate auditors become registered auditors themselves.
The updates that are necessitated by the Companies Act of 2008 relate to the definition of “company” in section l of the Act and cross-references to the Companies Act of 1973, in sections 38, 41 and 47, respectively, of the Act.
Debate concluded.
Question put: That the Bill be agreed to.
Bill agreed to in accordance with section 75 of the Constitution.
EIGHT ORDER
SEVENTH ORDER
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APPROPRIATION BILL
(Policy debate)
Vote No 34 - Trade and Industry:
The MINISTER OF TRADE AND INDUSTRY: Deputy Chairperson, hon members, may I also greet my colleague, Deputy Minister Masina, the director-general and officials of the department, who are sitting over there, and officials and leaders of some of our institutions, who are sitting in the gallery up there.
As has been the case in previous Budget Vote addresses to this Council, I intend today to concentrate on those aspects of the Department of Trade Industry’s work that impact most directly on our interaction with provinces.
The Department of Trade Industry’s fundamental task is, of course, to contribute to the goals defined in the National Development Plan of achieving higher levels of inclusive economic growth that would be capable of reducing the triple scourge of unemployment, poverty and inequality. This requires, as we have said previously, that we bring about structural change within the economy, place productive sectors at the heart of a new growth path that also moves us progressively and incrementally towards higher value-added activities. At the same time, we need to substantially advance transformation, by bringing more disadvantaged people into leadership positions in our productive sectors. These two elements together are what we understand as radical economic transformation.
The seventh iteration of our Industrial Policy Action Plan, which I launched earlier this month, seeks to build on and progressively raise the scale and impact of interventions by government to support the reindustrialisation and industrial development of our country.
Among other tools identified for stepped-up action in the year ahead is the special economic zones programme. Special economic zones have been shown through experience in a number of countries to be an important tool to promote industrial investment by offering the benefits of clustering, dedicated infrastructure and supportive incentive programmes. Special economic zones are also important tools to promote industrial decentralisation to ensure that all potential industrial development is not overconcentrated in existing industrial areas.
As hon members know, prior to the enactment of the Special Economic Zones Act, Act 16 of 2014, South Africa had only one form of special economic zone, namely industrial development zones, which were established under the Manufacturing Development Act of 1993. Industrial development zones focused on export-orientated industries located around ports and airports and benefited mainly from duty-free entry into Customs controlled areas of inputs needed for further processing in the zone.
I am pleased to be able to report that through our joint efforts we are now seeing a number of IDZs gaining traction and contributing positively to industrial development and job creation. Between 2002 and 2014, the Coega, East London and Richards Bay IDZs together attracted a total of 54 investors with an estimated investment value of R4,8 billion. These investments are estimated to have created approximately 73 000 jobs.
As hon members are aware, we have more recently proclaimed two more IDZs, the first is Saldanha in the Western Cape and the other is the Dube Trade Port in KwaZulu-Natal. I am pleased to be able to report that these have received positive responses from investors. The Saldana Bay IDZ is engaged in discussions with more than 26 potential investors who are interested in locating in the IDZ, with the majority of these investors focusing on logistics support services, oil and gas contracting and drilling services, and marine and rig-building fabrication and repair. Eight of these companies are already in the process of developing and finalising agreements with the IDZ. The Dube Trade Port has in just a few months attracted investment commitments of over R900 million.
In addition, I am pleased to be able to announce that we have now cleared all issues necessary for me to take a proposal to Cabinet to establish an agro-processing and logistics-based IDZ at Maluti-a-Phofung in the Free State.
I am also pleased to announce that the SEZ advisory board has been appointed and will shortly begin work on finalising the SEZ regulations and considering proposals for the designation of new SEZs. Members will recall that the main aim of the Special Economic Zones Act of 2014 was to allow for the proclamation of a broader range of SEZs, while still allowing for the recognition of existing and future potential industrial development zones. The new SEZs could include IDZs, free ports, free trade zones or sector development zones. They will be supported by an incentive package that will include a 15% corporate tax, building allowance, employment incentive and Customs controlled territory. We will also offer a stepped-up support service to investors. The new SEZs will have to be proclaimed by the Minister on advice from the SEZ board, which, as I indicated earlier, we have now appointed.
As we previously reported, as the SEZ legislation was being processed we provided seed funding to provinces to undertake feasibility studies and planning work for potential SEZs. We facilitated the establishment of project management units in all provinces to support the implementation of the proposed SEZs and we have entered into a five-year partnership agreement with the Chinese government on an SEZ capacity-building programme, to train at least 30 government officials across the three spheres of government.
In the coming year, we will proceed with a four-point programme to build on this momentum. This will include, firstly, finalising the necessary regulations during the first quarter of the financial year; secondly, designating new SEZs, with a strong focus on mineral beneficiation-based SEZs; thirdly, putting more resources into investment promotion and marketing campaigns for all our SEZs; and fourthly, providing continuous support to provinces for the development and management of SEZs.
In addition to the SEZs, we are also developing a programme for the roll-out of industrial parks. Industrial parks will be defined areas in particular municipalities where infrastructure will be provided and existing and new companies will receive special incentives. We are currently working on the details of this programme but are confident that by working together with provincial departments, provincial development agencies, municipalities and districts, as well as the private sector and development finance institutions, we can roll-out the initial infrastructure construction for one industrial park per province in the coming financial year. The Department of Trade and Industry will return to this Council to report on the progress of these undertakings we have made today.
In addition to these specific programmes, the Department of Trade and Industry provides a comprehensive range of targeted interventions to support the raising of the competitiveness of our industries, investment, economic transformation, exports and job creation. These interventions include the Section 12i Tax Allowance Incentive, the Automotive Investment Scheme; the Aquaculture Development and Enhancement Programme; the Business Process Services programme; and the Critical Infrastructure Programme.
The uptake of these programmes is spread throughout our nine provinces. For example, the Automotive Investment Scheme has approved just over R1 billion in grants, facilitating about R2,7 billion in private sector investment. This supported 50 projects, 35 of which are located in the Eastern Cape, six in Gauteng, eight in KwaZulu-Natal and one in the North West.
The section 12I Tax Allowance Incentive approved R5,8 billion in allowances to 17 projects, six of these in Gauteng, three in the Western Cape, two in KwaZulu-Natal, two in the North West and one each in Limpopo and Mpumalanga.
The Aquaculture Programme has approved grants of R28 million, thereby facilitating around R100 million of private sector investment. This supported 11 projects, four in the Western Cape, two each in the North West and the Eastern Cape, and one in KwaZulu-Natal, Mpumalanga and Gauteng.
Over R100 million of grant funding was approved under the Critical Infrastructure Programme, facilitating an estimated R10,2 billion of private sector investment. These grants supported nine projects, two each in KwaZulu-Natal, Northern Cape and Gauteng, and one each in the Eastern Cape, Western Cape and Limpopo. It is projected that 9 385 direct jobs and 4 131 construction jobs will be created by this programme. Companies that have been supported include Illovo Sugar, operating in the manufacturing sector in KwaZulu-Natal; Ironveld Smelting in Limpopo, Assmang in the Northern Cape and Zendai Development SA in Gauteng.
There are many other opportunities and I invite you to work with the department of Trade and Industry in bringing the various programmes and support measures we provide to the attention of players in your constituencies. There is no reason, for example, why firms across all provinces should not more actively be participating in national and international trade exhibitions and pavilions in the various countries we are operating in to promote market access and showcase South African products and services. For those who are not yet ready to export, we have an extensive capacity-building initiative, called the Global Exporter Passport Initiative, which we launched a few years ago.
There has been a concerted effort to enhance access for South African products, especially value-added exports, in international markets. Africa remains at the centre of our efforts, and we have been actively championing continent-wide industrialisation and an ambitious development integration programme. In this regard, significant progress has been achieved in the Tripartite Free Trade Area negotiations between the Common Market for Eastern and Southern Africa, Comesa, the East African Community, EAC, and the Southern African Development Community, SADC.
The Tripartite Free Trade Area, which embraces 26 countries with a combined population of 500 million to 600 million and a combined gross domestic product of $1 trillion, will be launched on 10 June 2015, in Sharm el Sheikh, Egypt. This launch will signify the conclusion of the negotiations on the legal instrument to establish the Tripartite Free Trade Area, TFTA, and will be followed by a process to finalise negotiations on tariffs and rules of origin, the key elements of a functional free trade area. This is an important milestone in the implementation of the development integration agenda in Africa aimed at promoting market integration but based on industrial and infrastructure development.
The TFTA launch will be followed within less than a week by the launch of the negotiations - here in South Africa, at the African Union Summit - for a Continental Free Trade Area, CFTA. Once established, the CFTA will be a market of over 1 billion people and a GDP of US$2 trillion. The African market is crucial for South Africa’s industrialisation and job-creation efforts as one of the key destinations for value-added exports.
Africa will also host the 10th World Trade Organisation Ministerial Conference on 15 to 18 December this year, in Nairobi, Kenya. There are many challenges that will confront us and all the other developing countries in ensuring that the outcome of the Ministerial Conference, MC10, underscores the centrality of development as provided for in the Doha Development mandate - that is, supporting industrialisation objectives in Africa and includes meaningful disciplines on subsidies in agriculture, particularly those that disadvantage farmers in developing countries.
As you know, we have actively campaigned for the extension of the African Growth and Opportunity Act, with South Africa included. I am pleased to inform the Council that the United States Senate has approved a 10-year extension with South Africa included. [Applause.] However, the African Growth and Opportunity Act is renewed with a provision for a series of reviews for South African and other beneficiaries identified by the US Administration. The African Growth and Opportunity Act, in other words, is coming with demands that we accommodate the US in terms of market access demands, starting with but not limited to the question of poultry. We continue to engage on this issue and I invite the select committee to oversee our work on this important matter.
The new broad-based black economic empowerment, BBBEE, Codes of Good Practice came into force on 1 May after an 18-month phase-in period. The fundamental change is to introduce subminimum scores that must be reached in supplier development, skills and ownership.
Finally, I was going to say that we are also working in energetically on matters to do with liquor and gambling and their policy papers, which will be published and be the subject of the engagements. I thank you for your attention. [Time expired.] [Applause.]
Mr E MAKUE
The MINISTER OF TRADE AND INDUSTRY
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Mr E MAKUE: Hon Deputy Chairperson and hon members, on behalf of the select committee it is my pleasure to mention that the leadership and staff of the DTI co-operate commendably with us as members of this committee. Please allow me therefore to thank Minister Rob Davis, Deputy Minister Mzwandile Masina and the Director-General, Mr Lionel October, for all their co-operation, support and leadership. It is easy to support a winning team.
Last week, on Wednesday, 13 May, the select committee received and considered the budget, the Strategic Plan 2015-2020, the Annual Performance Plan and Key Planned Interventions for 2015-2016 financial year of the Department of Trade and Industry.
The select committee’s consideration of Vote 34 involved robust engagement with senior and executive staff of the DTI. They provided the context within which the DTI’s strategic plan had been developed and presented its Annual Performance Plan and budget. This department understands and appreciates the importance and significance of public accountability and it sets a sterling example.
However, we must hasten to add that the documents we received illuminate the fact that the road to be travelled is still long and filled with minefields. What is important is that the road map is clear and is informed by scientific analysis and strategic political and progressive economic choices.
This was underlined by the address delivered today in this House of Parliament by our hon Minister Rob Davies as the political leader of the Department of Trade and Industry. In the general scheme of politics, there will be those members and parties who may exercise the freedom that the ANC won by taking issue with the presentations made today by those who are proud members of this historic liberation organisation, the ANC, which celebrates the 60th anniversary of the Freedom Charter this year.
In a letter to Sheena Duncan, in April 1985, Dr Nelson Mandela, a respected and renowned member of the ANC, stated and I quote:
The ideals we cherish, our fondest dreams and fervent hopes may not be realised in our lifetime. But that is besides the point. The knowledge that in your day you did your duty and lived up to the expectations of your fellow men is in itself a rewarding experience and magnificent achievement.
Of the many lessons we could draw from the life and struggle of the gigantic former President of this democratic Parliament is the imperative of achieving the expectations of our people. The DTI is putting emphasis on localisation and beneficiation. The wealth of the country must benefit all South Africans. We must add value to our mineral wealth. The Minerals Beneficiation Action Plan aims to ensure value addition.
The development of infrastructure is a key component of our struggle for a South Africa free from the triple challenge of inequality, poverty and unemployment. Revitalising the agriculture and agro-processing value chain is an important source of labour-intensive growth. Up and downstream linkages are being implemented through the Industrial Policy Action Plan, in line with the macroeconomic objectives set out in the National Development Plan and the New Growth Path.
Radical economic transformation requires increased efforts on industrialisation. The focus for the DTI in its programmes and plans reflect such emphasis. The budget presented to us today is a tool to realise this historic imperative. The logical conclusion is that a vote against or abstention from voting is an unequivocal vote for the status quo where economic development benefits only a privileged minority.
The Johannesburg Stock Exchange concurs with President Zuma that black South Africans hold only approximately 3% of listed entities. This emphasises the need for revisiting Broad-Based Black Economic Empowerment approaches. The National Empowerment Fund, an entity of the DTI, is seized with addressing this imbalance.
A total of 3 384 private sector enterprises across all provinces have been assisted with projects to the value of R13,6 billion through incentive schemes and other programmes of the DTI during the 2013-14 financial year. We can guarantee you that further growth will be reported in the 2014-15 financial year.
In implementing the Industrial Policy Action Plan the DTI is working on developing special economic zones, SEZs. The Minister has spoken about that quite extensively. Let me just add, for my colleague to my left, that we are looking at such SEZ also in the Rustenburg platinum belt. Industries that use platinum as an input are jewellery, catalytic convertors and fuel-cell technology.
A plan of the department is not just to assist in the mining of platinum but to add value in the manufacturing of these end products. Through such industries, mineral beneficiation will become a reality. This is evidence that the DTI has practical, workable and realistic plans.
Let me mention companies like Eclipse Energy, Fabrinox, Film Africa, La Ric Mal, Baxter’s Auto, Solaire Direct and Spice Mecca, which are but some of the companies that are beneficiaries of the DTI’s incentives to grow the economy.
King Goodwill Zwelithini wisely says that youth employment is a societal problem and the private sector should work together to address this. The king was speaking at the CCI Call Centre building established in Umhlanga, KwaZulu-Natal, creating over 1 635 jobs by way of business process outsourcing, or what is also known as business process services. More of these call centres are envisaged in the budget that we are presenting to you today.
Japanese foreign direct investment are steadily increasing in South Africa. Such investment has already created 15 000 jobs. Toyota is increasingly becoming involved in supplier development programmes, raising the capacity of local manufacturers. There are other motor vehicle manufacturers, like Hyundai, Iveco, Mercedes Benz, Hino Trucks and FAW Trucks, that are also contributing – I have just isolated the Japanese.
In February 2015, the National Footwear Leather Cluster was established at the Vaal University of Technology. Tranversal contracts for footwear by the state have risen from R99,4 million in 2014-15 financial year to R272,2 million in 2015-2016 financial year, which is more than double the first year.
The clothing and textile industry is also elaborately covered in the budget but due to time constraints won’t go into that.
Hon members, put on the right shoe and join us in the long walk to economic freedom.
For those who are technologically savvy, you can carry an IBM product, if you so choose, as the DTI also launched a R700 million IBM Equity Equivalent Investment Programme, which was approved on 26 January 2015.
The budget and Annual Performance Plan presented to the NCOP today is in line with the DTI’s strategic objectives of, firstly, growing the manufacturing sector to promote industrial development, job creation, investment and exports; secondly, improving conditions for consumers and artists and the opening up of markets for new patent players; and thirdly, strengthening capacity to deliver on the DTI mandate.
Yesterday Minister Rob Davis launched the SA Business Incubator Establishment Handbook as a guide. The handbook is a resource for anyone interested in incubator establishment.
The creation of black industrialists and millionaires is overdue. Let us join hands in embracing and enhancing trade and creating an industrial economy where the ideals of our democratic Constitution and the Freedom Charter are realised. Thank you. [Applause.]
Mr J J LONDT
Mr E MAKUE
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Mr J J LONDT: Hon Chairperson, hon Minister Davies, Deputy Minister Masina and hon members, good afternoon. I want to start off by firstly thanking this department for debating the Department of Trade and Industry budget in the National Council of Provinces first. It is the only department that came to this House of Parliament before the other House and for that I want to thank you.
It would be remiss of me not to mention and say thank you for the ongoing and thorough communication from the department, specifically from Saraj Naidoo, to the members of the select committee. I think sometimes we wish our spam filter worked a little bit better, but when we have time it is really nice to sit and read through all the information that we get from you.
South Africa is a country that has a terrible history of huge inequality that still needs to be addressed. Numerous programmes, like the Reconstruction and Development Programme and Growth, Employment and Redistribution, or Gear, were launched to help achieve redress and ensure that the previously disadvantaged in this country can fully partake in the economy and reap the benefits of that involvement and the freedom achieved in 1994.
However, a culture was created by the ANC that only benefited a connected few; those closely aligned to the ruling party. This caused and is still causing huge internal battles, which often spill out into the open, for top positions within the ruling party. These positions put individuals in power, allowing them to dish out contracts to family, friends or close allies. This once again puts the needs of the majority of South Africans at the bottom of the agenda and on the outside of our economy.
The ruling party then acknowledged this problem and tried to address it by introducing Broad-Based Black Economic Empowerment after severe criticism against the previous empowerment programmes that, as I mentioned earlier, only benefited a closely connected, select few instead of benefiting the wide spectrum of previously disadvantaged South Africans and spreading the benefits to more individuals, families and communities. Unfortunately, the culture of benefiting a few was so deeply entrenched that we have still not made the significant progress that we should have 21 years into our new democracy.
The ANC of today only cares about enriching the politically connected few, which is why so many jobs have been lost since President Zuma came into office in 2009. The ANC says that the answer to our problems lies with the “developmental state”. Unfortunately the policy of cadre deployment is destroying all the good intentions there might be.
We have freedom in South Africa; a freedom that the ANC, Pan African Congress, Democratic Party and many other political, civic, religious and other organisations fought for. The question we need to ask ourselves is: Can we use this freedom? Does the average South African have a fair opportunity to compete in the job market? As the DA we believe that freedom is not a favour from government; it is a right. The freedoms intended by the framers of our Constitution were hard won for us all. This freedom is precious and must be guarded.
Access to opportunity gives life and meaning to our hard-won freedoms. We believe that every South African must have the chance to succeed in life. That is why we believe in spreading opportunity as broadly as possible. This is what the DA believes in and what we stand for and that is the major difference between the DA and the ANC: a closed-crony society for a connected few, as put forward by the ANC, versus an open-opportunity society for all, driven by the DA.
Recently we had another example of how the ANC, and specifically this department, cannot get their house in order. Last week the DTI made a U-turn on the clarification notice issued on the Broad-Based Black Economic Empowerment Codes of Good Practice, stating that they would not have a retrospective effect and that a technical task team would be appointed to explore the appropriate balance between active and passive ownership. The task team needs to report back to the Minister within a month on its recommendations. The establishment of this task team is misguided and highlights the ANC’s fixation on further enriching those elite few who have already been empowered by black economic empowerment.
The DA firmly believes that government’s focus should be on empowering and advancing those who are left out of the economy and trapped in unemployment rather than those who are already enriched and in ownership. This technical task team would be better suited to explore this aspect of BEE. The DA champions opportunity over hand-outs. In contrast, the ANC only serves to further enrich the connected few and the current BEE codes and the technical task team’s mandate clearly illustrate this.
The DA will continue to ensure that black economic empowerment is truly broad-based for the benefit of the millions of disempowered South Africans who remain outside of the economy. It is time that this government realises that it cannot be the beginning and the end of taking South Africa forward. We need a government that realises it must take the hands of the private sector, international investors and together help uplift South Africans who are still trapped since pre-94.
The DA has a proven track record in the Western Cape. Instead of criticising everything the DA does, the ANC can learn how public-private partnership should work to benefit many, instead of a connected few. If you fail to learn from the DA, you will soon have to rope in other soccer icons to help you try and defend metros in the rest of South Africa as well. [Interjections.] I thank you. [Applause.]
Ms N P MOKGOSI
Mr J J LONDT
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Ms N P MOKGOSI: Hon Chairperson, the EFF does not support the Department of Trade and Industry’s budget. Unless this department gets capacitated and mandated to take full charge of macroeconomic and microeconomic policy, South Africa can forget about industrialisation. The ANC-led government continues to amputate the Department of Trade and Industry by chopping and shifting functions to other ill-conceived departments. How can your department consider itself leading industrialisation when the Industrial Development Corporation is sitting with a wrong and unnecessary department?
The history of industrialisation across the world has proved that there is no country that has successfully industrialised without state leadership and the deliberate protection of strategic sectors - something the ANC continues to avoid. Unfortunately it has become evident that the department has failed to lead the proper alignment and co-ordination of industrial policy.
Perhaps the Minister must read up on the history of the Ministry of International Trade and Industry, now known as the Ministry of Economy, Trade and Industry, of Japan. It was that Ministry that led Japan to massive industrialisation post World War 2, becoming the second biggest economy and the biggest US trading partner in the late 1980s. The rest is history. But then again, in Japan, like most East Asia countries that today are celebrated as miracle economies, the governments were in full control of their economies through massive investment and state-owned companies.
South Africa will fail to industrialise unless it is in control of strategic sectors and the commanding heights of the economy. A few so-called black industrialists will not grow the economy or deliver any jobs - we all know that. There are basic political economic principles that the Minister must revisit. How do you build transformed industries that require precious metals when you cannot access your own minerals? How do you build transformed agroprocessing industries when people cannot access land to farm? How do you build a transformed economy when, ideologically and philosophically, you seem to be struggling with basic concepts and principles?
You have the political will, yet you do nothing about it. It must not be a surprise, Minister, that the ANC-led government has failed horribly to implement the promise they made to the people of South Africa during the elections - that 75% of the goods that government consume will be procured from local industries. Who is going to produce these goods? This is a clear indication of the lack of concrete direction. There has to be radical decisions to transform the economy - not dictionary-based radicalism, but Freedom Charter-based radicalism.
Until such time as other industries and trades are controlled to assist the wellbeing of the people, the EFF will not support any budget that comes from this department – that is, the EFF, the government-in-waiting. [Interjections.] [Applause.]
The DEPUTY MINISTER OF TRADE AND INDUSTRY
Ms N P MOKGOSI
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The DEPUTY MINISTER OF TRADE AND INDUSTRY: Deputy Chairperson, members of the select committee, Minister of Trade and Industry, Minister Rob Davies; Director-General and senior staff and officials in the Department of Trade and Industry, leaders of organised business, distinguished guests, ladies and gentlemen, and comrades from my zone, on numerous occasions we have pronounced on the intention of the ANC to lead a radical project of socioeconomic transformation. This is in line with the principles and objective of building a democratic society with a developmental dividend that is shared among all the people.
Last year we promised that we were going to run a clean government – a clean department. I can report in this House that we are not very far from ensuring that as the Department of Trade and Industry we attain our first clean audit.
Part of this includes working to use our natural resources to build an economy that can distribute the wealth and benefit to the people, as per the Freedom Charter - because the ANC is the only party that can speak with authority on issues of the Freedom Charter. [Interjections.]
Our Industrial Policy Action Plan recognises the need to build an economy that overcomes spatial underdevelopment. This informs our plan to facilitate industrial development in regions of our country that have a low rate of industrial activity. South Africa’s industrial economy is partially concentrated, and it systematically leaves out a great section of the population, which is the reason that we are forcing many of the investors to begin to look into other sections of our provinces outside of Gauteng, outside of Western Cape – Cape Town in particular – and outside of Durban.
It is for this reason that we have underpinned our black industrialist programme with the principle of spatial investment. This means that we need to create an entrepreneurial group that will exploit the industrial potential in all provinces of our country, especially in rural areas. We understand that a stronger base of competitive and innovative black industrialists is not only necessary but they may also be much better placed to drive government’s effort for the industrialisation of all regions in our country. Importantly, our black industrialist programme encourages the growth of industrialists while committing to support them in pursuit of external markets for their products.
We have already made major strides in helping producers from various provinces to extend their footing outside the market in South Africa. We have travelled with a delegation of 30 companies to Zimbabwe. Among them was the company called Ezabathembu Water Purification Supply from the Eastern Cape, which manufactures chemical cleaning products for residential and commercial markets. They have since found a new market in Zimbabwe and we will continue to support this family-driven entrepreneurial business.
When we were in China, Yilda Manufacturing committed to establish a blanket factory in KwaZulu-Natal and Gauteng. Another company in China has also undertaken to invest in heavy-truck assembly in Durban, while yet another will invest in electronics in Port Elizabeth. These are some of the initiatives that we have been doing, because as we go to these missions we ensure that there is value for money for the people of South Africa.
The Department of Trade and Industry has numerous incentive schemes that are designed to integrate local emerging firms into the industrial value chain through partnerships with these foreign investors. Similarly, as government we have committed our public procurement as one of the instruments to be used in advancing this objective of boosting industrial productivity in historically marginalised regions. This will be implemented through our set-asides for targeted procurement from SMMEs and black-owned companies. Currently, government’s threshold set-aside is about 30% and the objective is to institutionalise it up to about 70% to ensure that emerging businesses do benefit from this.
The state-owned enterprises have also been drawn in to ensure that their procurement spend helps us to ensure that we can boost this black industrialists programme. A recent example, which our hon member read here, was signed with SAA on 18 May: We have set aside about R10 billion of procurement opportunities for black entrepreneurs and industrialists in the airline sector.
Provinces need to creatively exploit these commitments by public institutions by evolving these memorandums of understanding and working with our parastatals. As earlier stated, our black industrialists programme is designed to help black entrepreneurs to increase their productivity in order to meet the demand of the market broadly as well as that of public institutions.
We have an abiding responsibility to actively make this economy work for all our people. The Department of Trade and Industry takes seriously the role of government in fostering transformation in the economy. We view this in line with the national objective of building an inclusive society. It is in this context that the Department of Trade and Industry progressively evolves a policy regime that is a midwife to transformed relation of assets ownership and high economic growth.
Our policy objectives are designed to help the economy overcome the vitality of the market in resolving structural and social inequalities that are historic in nature. This includes overcoming spatial inequalities among provinces in terms of industrialisation. In this context the DTI’s aim is not to substitute itself for private capital. The objective of the Department of Trade and Industry is to induce the emergence of new entrepreneurial groups in critical sectors of the economy, consistent with the national transformation objective.
I must say, regarding hon J J Londt’s distortion of BEE, that he must be reminded that his forefathers stole our land and our resources but we said nothing about it. He comes here today to tell us about the distortion of BEE. [Interjections.] The recently elected leader of his party must basically be reminded by the majority of the people of South Africa that he is nothing but a puppet of white monopoly capital. We still need to ask critical questions from this so-called black leader about the drugs in church, about the sex scandals in office and about many other shenanigans that are happening there in the name of transformation. [Interjections.]
Ours is to run clean government; ours is to transform society and ours is to ensure that the majority of our people are extricated from the poverty, inequality and unemployment that they continue to face – but not to serve the white master. [Applause.]
Prof N MATHABE
The DEPUTY MINISTER OF TRADE AND INDUSTRY
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Ms R S MATHABE (Mpumalanga): Hon Chairperson, hon Minister Rob Davies, hon Deputy Minister Mzwandile Masina, hon members of the select committee, the Director-General, the business sector, ladies and gentlemen, sanibonani [good afternoon].
The ANC, the only national democratic revolutionary, is cognisant of all the achievements and progress that the country has made in 21 years of democracy in changing the lives of all and making South Africa a better place for all to live in. However, hon members, the ruling party, which the ANC, is also aware of the challenges that lie ahead of us in ensuring that we completely reverse all the apartheid injustices done to the majority of the citizens. As the hon President of South Africa usually says, “Yinde lendlela esiyihambayo.” [We still have a long way to go.] Indeed, iseseyinde [it is still a long way] if the new kids on the block today claim that they are doing whatever they are doing in the name of the Freedom Charter, then iseyinde ngepela lendlela [it is really a long road]. Indeed, we still have a long way to go and we must all work hard, with dedication and commitment, to ensure that we reverse apartheid inequalities. It is so sad to hear one of them - the previously advantaged - talk about inequality because he does not know anything about inequality.
The 2014 election manifesto of the ANC clearly articulates what we as the ruling party commit ourselves to doing to reverse these apartheid disparities. Hon members, the National Development Plan, which is a cornerstone of South Africa’s development agenda, seeks to eliminate poverty and reduce inequality by 2030. This is also emphasised in the government’s Medium Term Strategic Framework 2014-19 and in the 14 National Government Outcomes. This therefore requires the collaborative effort of all South Africans to ensure that, as required by the National Development Plan, gross domestic product increases by the required 2,7 times in real terms and annual average GDP growth of 5,4% is indeed achieved.
As the ruling party - I will always quote the ANC - we are in full support of the budget allocation for Vote 34 to the Department of Trade and Industry. As the people’s movement, we view this department as one of the key departments; one that must play a critical role in ensuring that the 24 million job opportunities, as clearly articulated in the NDP, is indeed achieved. This department therefore has a huge responsibility in terms of labour-absorbing growth, the increased competitiveness of South African industries and products, both locally and in international markets, and also to increase the value of our exports and improve trade with the rest of the world.
Hon members, let me remind you that as the ANC, the ruling party, we have declared 2015 the year of the Freedom Charter, when we all say with one voice that we must return to basics. We are therefore in agreement that the budget allocated for this department, as well as its priorities, will ensure that, as a country, we move forward towards achieving the objectives and key levers of the Freedom Charter and the NDP.
This department is tasked with the responsibility - among others - of facilitating access to sustainable economic activity and employment for all the citizens of the country. This is a huge responsibility and it requires a critical and accurate understanding of the economy and of where the economic opportunities are. The second one is that this department has a huge responsibility to ensure that a conducive, competitive and equitable environment for investment and trade is created.
We are in support of Budget Vote 34 in light of the fact that this department also has the responsibility to support and provide incentives to industries and to promote private incentives in order to promote industrial development, competitiveness and employment creation. It must also support South African exporters in accessing international markets. Hon members, this is a critical responsibility in ensuring that as a country we reduce our deficit in the balance of trade.
It must also make sure that it promotes industrialisation that is more efficiently distributed through the establishment of Special Economic Zones and that it supports investment in critical infrastructure. It must also ensure the promotion of and increase in local products and materials in government procurement localisation or local content.
The Department of Trade and Industry has this as a huge responsibility to the citizens of this country. It needs our full support and commitment to ensure that it meaningfully contributes in addressing the socioeconomic needs of our beloved country, South Africa, as well as meaningfully contributing to the targets set out in the NDP and MTSF, as championed by the ANC-led government.
In conclusion, hon Chairperson, as the ANC, we are in full support of the Department of Trade and Industry’s Budget Vote and we are satisfied that the department has optimally aligned itself in order to deliver on its mandate within the 2015 allocated resources. I thank you for your kind attention.
Ms E C VAN LINGEN
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Ms R S MATHABE
The HOUSE CHAIRPERSON (Mr A J Nyambi): No, I am presiding. [Interjections.] The hon Khawula is not participating. Hon Van Lingen, please take the opportunity.
An HON MEMBER: What is happening with the DA?
Ms E C VAN LINGEN: Chairperson, please fix the clock. This is the Chinese one that working here today. [Laughter.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): No, I have the right one here, do not worry.
Ms E C VAN LINGEN: No, I do not trust you, Chairperson! [Laughter.] Put the clock on four minutes. [Laughter.] [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): No, no, do not cast aspersions! Go on, hon Van Lingen.
Ms E C VAN LINGEN: Hon Chairperson, hon Minister, Director-General October, it is good to be in the House with you. I want to start with hon Masina, who objected to the democratically elected leader of the DA. I want to tell him that if he could prove for one minute that the ANC’s copy book was clean, he may dare to speak. But I can tell that his arrogance precedes his intelligence.
The hon Mathabe must learn to remember what you read about the DA. We have a values charter of freedom, fairness and opportunity. We believe in redress and reconciliation. Your concern is that we stand here before you today, backed by a mandate of 4 million voters, which is getting more by the day. [Applause.]
We also believe in the Constitution of South Africa and we do not have to plead a Freedom Charter because what is important is the Bill of Rights in Chapter 2 of the Constitution. [Interjections.]
To adapt a quote that I read in the media this week, the Department of Trade and Industry can only be described as a department where “jobs go to die”. That was a headline by Peter Bruce. We need to be consequent when it comes to a free market system. In our Values Charter and in our alternative budget we explicitly say we need to create more jobs and we need to grow the economy. We cannot move away from that. That is of the utmost importance.
We sit with three departments, namely the Department of Trade and Industry, the hon Patel’s Department of Economic Development and now we have the Department of Small Business Development too; with a rough budget of R24 billion; and we need to grow the economy. Now we also sit with a 100 industrialists that we want to create. I am worried that we could have done more in the entrepreneurial market and small business to grow the economy and not make the fat cats any fatter because unemployment is growing from 28% to 36%.
I also want to say to the Minister that instead of driving and spearheading economic empowerment, we sit with accusations of fraud in his department. This is of grave concern and we want to know why nothing is happening about the report regarding one of his entities, the Company’s Tribunal. It is because he and his ANC colleagues will dismiss claims of financial irregularities that embroil the chairman, Adv Simmy Lebala, and his deputy chair.
This is further exacerbated by maintaining six senior government officials in his department who have been suspended but still receive full pay, at a cost to the taxpayer of R2,8 million a year. They have been suspended.
Then Asrid Ludin, the Commissioner of the Companies and Intellectual Property, resigned after pressure from the trade union National Education, Health and Allied Workers’ Union, Nehawu. We are, however, welcoming the Minister’s U-turn on Broad-based Black Economic Empowerment codes.
Minister, you did come to the rescue of the Industrial Development Zone in East London. However, I would like to ask what you have done about the bonuses of R7 million that the executives paid themselves there. Has that money been paid back? Are you doing something about it? We cannot pay bonuses and go bankrupt and leave the other employees without money.
You know, Minister, I have heard you say so many times that the Western Cape would be nothing without your department. We agree with you. [Interjections.] We agree with you. But your department is shaping in South Africa in the Western Cape and if you had all the successes that you have in the Western Cape, your department would grow the economy and it would create more jobs in South Africa. I thank you. [Applause.]
Mr B G NTHEBE
Ms E C VAN LINGEN
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Mr B G NTHEBE: Chair, the hon Acting Chief Whip, hon Minister and the Deputy Minister, the chairperson of Ekurhuleni ... [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Order! Sorry, hon Nthebe. Hon Van Lingen, is there a problem?
Ms E C VAN LINGEN: Hon Chairperson, ... [Inaudible.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Order! Please proceed, Mr Nthebe.
Mr B G NTHEBE: Hon members and special delegates, what hon Van Lingen has not told us here is that all the reports of people who are accused of corruption and are being dealt with in terms of the necessary processes of the department are leaking their reports to the DA. They are all leaking their reports to the DA. [Interjections.] What hon Van Lingen is not telling us is this: What is the connection between the people who are accused of corruption in the department and the link with them?
A dynamic industrial and highly competitive economic space requires zeal and determination, Minister. In our quest to achieve this we should continue to appreciate the realities of the past and remain confident of our future; a future rooted in inclusive growth and development, seeking to achieve decent employment and equity.
The above targets cannot be achieved if the constraints in the electricity supply cannot be mitigated substantially, if the manufacturing sector cannot be supported to increase the production levels, if we cannot shift the focus from the commodity-driven economy to the agroprocessing sector - and we want to welcome your announcement of the agroprocessing plant that is going to be set up in the Free State.
Minister, your strategic objective of increasing localisation to 75% is most welcome. So is the fact that you intend to develop a stable and competitive exchange rate, to secure five investors per district municipality and to develop a national rural investment incentive. Your foreign direct investment pipeline inflow to a tune of R50 million is well appreciated. The Tripartite Free Trade Area Agreement that you are going to be signing on behalf of South Africa is going to give us space to develop our role in Africa in terms of strengthening our intra-African trade penetration.
We therefore receive with excitement the development and investment in the film industry - the Chairperson of the Select Committee was eloquent on that. We appreciate how you continue to diversify the wine-making industry and support black-owned companies in that regard.
Hon Minister, I am from the North West province, and we in the North West are ecstatic that in your address to the Japan seminar your announced that you were going to be declaring the platinum belt in Rustenburg a Special Economic Zone, with the immediate intention of developing industries in that regard. We want to appreciate that, unlike others, we are not riding on the emotions of workers. We are doing something practical to make sure that people who are in the development of inputs coming out of platinum are getting space in the sector.
The recent Southern African Development Community, Sadc, meeting declared in its wisdom that the time has arrived for us to begin to define what form and shape should characterise what we call “regional integration”. The meeting was unanimous that regional integration in our very words means nothing but industrialisation. We want to thank you through your department for your wisdom.
Hon Minister, maybe I must break it down for other hon members who were here. Hon Londt says the ANC seeks to deal with and assist the connected few and that this has been seen in its battles; that BBB-EE has not worked; and that the ANC of today is concentrating on cadre development. That is utter hypocrisy. What hon Londt is not telling us is that in the Western Cape, where the DA is deploying, the question is this: Who are they deploying? Are they deploying EFF members? [Laughter.] He is not even telling us that what they stand for is the status quo. That is what they stand for - that we should not begin to diversify industry and become inclusive in our quest to neutralise what has been done over centuries.
Hon Mokgosi comes here – and, Chair, I want to move this without notice as I stand here: [Laughter.] We must begin to take members who are coming here for induction. Even those who go for a long period of time should go through induction, for they come here and want to pronounce on matters but what they stand for is a rejectionist approach.
Let me break it down for you. [Interjections.]
Ms N MOKGOSI: Chairperson, on a point of order.
Mr B G NTHEBE: They will come here and disagree ... [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Order! Hon member, what is your point of order?
Ms N MOKGOSI: My point of order is that the hon member is undermining my skills. He must withdraw. [Laughter.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon member, order!
Ms N MOKGOSI: Is that parliamentary, Chair? [Laughter.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): That is not a point of order. Continue, hon Nthebe.
Mr B G NTHEBE: Chair, I can break it down for you. When we pass Budgets Votes of the departments - let us take the Departments of Education, for instance - the EFF will come and reject the very same Budget Vote that is meant to pay teachers. We know they should be in class, on time, every day and all the days. Yet they come here and reject it! What do they stand for? They come here and speak about Marikana on a daily basis when a special economic zone is being created and established in Marikana. They do not speak about that! When a strike is being averted in the public sector, they do not say, we thank the wisdom of those who were negotiating on behalf of everybody involved for the maintenance of industrial peace, which is vital for investment in our country, for foreign direct investment.
Maybe we must break it down for them. There is no silver bullet for economic industrialisation achievement in the country. We need to do simple things. As we stand now, maybe you should take this information to your leaders: they must stop buying imports such as cars, clothes and shoes that are looking at them … [Interjections.] … when they should know that we must grow our export base in order for us to deal with the trade balance issues we have. [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, order! Order! [Interjections.]
Mr B G NTHEBE: Hon Van Lingen, you cannot be the one who talks about respect for the Constitution. [Interjections.]
Ms E C VAN LINGEN: Why not?
Mr B G NTHEBE: You cannot be. You cannot cherry-pick the Constitution. The very Constitution that you are referring to respects the rights of everybody in the country. [Interjections.]
Ms E C VAN LINGEN: Exactly!
Mr B G NTHEBE: When your leader stands up and becomes homophobic, you must know that that same Constitution respects the rights of each and every one of us. Even the Bible that you read says we are all created in the image of God. [Interjections.] Your pastor must know in whose image we are created. [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, order!
Mr B G NTHEBE: You are becoming a media mouthpiece and are doing a lot of injustice to what freedom, fairness and opportunity represents. [Interjections.] We want to tell you now that it is not for a young person who is 20 years old, straight from university, to wait for Piet Pompies or foreman Koekemoer to pass away to become a foreman or an engineer of a mine. [Laughter.] We must begin to transform now - and transformation is not going to be smooth. When you talk about redress, you must tell us what kind of redress you are seeking to achieve. [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, order! Order, hon members!
Mr B G NTHEBE: Chair, can you protect me, please.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, in terms of Rule 32, during a debate in the Council, no members may converse as loudly as you are doing now. [Interjections.]
Mr B G NTHEBE: And I want more minutes.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Heckling is allowed but not in the way you are doing it. Continue, hon Nthebe.
Mr B G NTHEBE: We will not wait for Piet Pompies to pass away for our own kids to be placed in the key, very competent, strategic offices for them to be key drivers of the industry. That is what we must tell the DA - that redress is not smooth; it is not a dinner party. It is an element of a revolutionary model. It is not something that you are going to do sitting on a chair. [Interjections.] When we were told … [Interjections.] My time is up. You are very lucky! Thank you, Chair. [Time expired.] [Applause.]
The MINISTER OF TRADE AND INDUSTRY
Mr B G NTHEBE
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The MINISTER OF TRADE AND INDUSTRY: Chair, I want to start by acknowledging the recognition that the hon Londt gave to the fact that we started our Budget Vote speeches in this House. It is a sign of the respect that we have for this institution. [Applause.] I want to make this point because it is a little in contrast to the saga that we heard a year or two ago with regard to the DA’s position on black economic empowerment. I do not know how the DA can pretend that they have a track record of supporting BEE of any kind, whether broad or narrow.
In 2013, when the new amendment Bill was being passed, they stood up with a lot of fanfare in the National Assembly and announced that for the first time they would vote for a piece of legislation on BEE. They came right into this House and said, on spurious grounds, that they were reversing that position and they would no longer do so. So, I think the idea that there is a record of supporting Broad-Based Black Economic Empowerment in the DA is complete fiction. There was a whole debate about whether they supported BEE or not. Then we heard that the DA actually supports something called “diversity economic empowerment”. Is it to be or not to be; to d or not to d - tat is the question.
The fact of the matter is that the thrust of the new codes and new legislation, led by the BEE Advisory Council, which is led and chaired by President Jacob Zuma, is to broaden the impact of BEE and to ensure that it supports the entry of disadvantaged people into the productive economy of the country. That is what the new scores in the codes are all about – supply development and skills development. That is why we have a dedicated programme on black industrialists, because at the moment more than 80% of our incentives go to white-owned businesses. We need to support the radical transformation of ownership patterns.
Let me also say that what we did was to try and deal with a piece of mischief in the scorecard with regard to collective schemes. We found that there were many collective schemes that were not worth the paper they were written on. People were not actually given the real benefits of ownership; they were deprived of participation, and so on. We made a mistake, and we do not hesitate to admit that we made the mistake. We used to blunt an instrument to deal with the mischief. We have in fact withdrawn the cap that we put on in the first place and we will refer the matter to the commissioner, as well as to the task team, to look at ways in which we can deal with this as a matter of fronting.
Firstly, let me say to hon Van Lingen that it is easy to stand here in a few minutes and just go through a long list of alleged cases of corruption and fraud that we have in the department. I do not have the time to respond, but let me say to you that what we do when there is a forensic investigation is to follow the forensic investigation. In terms of the Companies Tribunal, I do not know whether you know what the forensic investigation said. It actually said that it could not finger anybody. I do not think that that is a case of us applying one law, one place and one rule somewhere else.
Secondly, hon Mokgosi I think next time you have a speech written by Floyd, you might want to ask Floyd to check a few of his facts. Firstly, Japan and Japanese industrialisation proceeded on the basis of strong state leadership but not many state-owned companies. That was the model in Japan. Secondly, in Japan they had more than one Minister in the Ministry of Economy, Trade and Industry. It was originally called the Ministry of Industry and Trade. They had more than one Minster. We have a different model. Yes, we have more than one department. However, I think it was in recognition of the fact that the tasks of industrialisation required the efforts of more than one Minister. So, that was the case there.
Let me finally respond to one more point that came up, which was the accusation that this administration has presided over a reduction in jobs. That is not true at all. According to Statistics SA’s Quarterly Labour Force Survey, in the fourth quarter of 2009 there were 12,9 million people in employment. At the end of the fourth quarter in 2014, there were 15,3 million people in employment. We have a high unemployment rate and it is one of our biggest challenges, but to say that we are not growing jobs in this economy is absolute and patent nonsense.
I want to thank other members, starting with hon Makue. I think that you gave us a very good idea of a number of the programmes of the department. We continue to work to support inclusive growth. If we look back at what our record was over the past 20 years or so, we will see that in our 84 quarters up to the end of 2014, we had 5% or more growth in only 16 of those quarters. What drove it? Firstly, it was high import and consumption-driven sectors; and secondly, the mineral products super cycle. We no longer have those realities. We have got to move up the value chain and we have got to industrialise. That is the common recognition of the entire African continent.
Many of the programmes that we are developing in the platinum valley - things like fuel-cell technology - are very, very exciting prospects. The Chamber of Mines is now running its own building on the basis of a fuel-cell generator. There are fuel-cell small engines that are going to be used in mines. Impala Platinum is going to use this technology. There are real opportunities for South Africa as the world’s leading producer of platinum to beneficiate in fuel-cell technology, as well as catalytic converters and jewellery. That is the basis on which we said we will be prioritising mineral beneficiation-based special economic zones.
Let me stop here and thank you very much for your attention. I am sure that we will enjoy the support of this House for Budget Vote 34. Thank you very much. [Applause.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Order! That concludes the debate. Let me take this opportunity to thank special delegates, the Deputy Minister and Minister for availing yourselves for this debate. Thanks a million times.
Debate concluded.
NINTH ORDER
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EIGHTH ORDER
ORATION OF CONDOLENCES ON DEATH OF DR RUTH SEGOMOTSI MOMPATI - TRIBUTE TO ICON OF STRUGGLE FOR LIBERATION OF SOUTH AFRICAN PEOPLE
Mr M RAYI: Hon House Chair, hon Deputy Chairperson, hon members, special delegates, ladies and gentlemen, last Tuesday, our nation woke up to the tragic news of the death of Isithwalandwe/Seaparankoe Dr Ruth Mompati, following a long illness. I rise to express the profound and heartfelt condolences of the ANC, its structures and the alliance partners. Our movement has lost and icon and a pillar of strength. I say this because all of us agreed that our movement and the people of South Africa lost a living embodiment of the spirit of the ideals of this illustrious movement.
As the ANC we have lost a great human being who lived her life with the sole purpose and resolve to serve our people. Mrs Mompati was born in Tlapeng village, few kilometers from Ganyesa in Kagisano-Molopo area within the district of Bophirima, now called Dr Ruth Mompati District Municipality - a district that has been named after her. Dr Mompati was born on 14 September 1925 and grew up in a rural environment. Between 1933 and 1940, she attended Vryburg United Primary Schools, where she completed standard six. Two years later, she continued her schooling at Tiger Kloof Institution of Education, where she received her Native Lower Primary Certificate. In 1944 she started her teaching career at the age of 19 in Dithakwaneng Primary School near Vryburg.
She got married in 1952 and lost her job due to the apartheid laws, which regulated that black female teachers were not supposed to get married. Immediately after, she moved to Johannesburg and became an active member of the ANC Orlando branch. In the same year, she studied short-hand typing.
In 1953, she was employed by Mandela and Tambo Attorneys as a short-hand typist. She became a member of the national executive committee of the ANC Women’s League and become one of the founder members of the Federation of SA Women the following year. She was one of the organisers and leaders of the march against the pass laws in Pretoria on 9 August 1956.
In 1962, she left the country for military training with uMKhonto weSizwe in the then Soviet Union. She could not return to the country to do her underground work because her colleague had given evidence against the ANC leadership. She had to become a full-time cadre of the underground movement in exile.
In 1966, she was elected to the national executive committee and during the same year she was transferred to the ANC’s office in Zambia, but continued between Tanzania and Zambia in the course of her work in the ANC president’s office. In 1966, she was sent to Germany by the movement of the ANC Women’s League secretary to represent the Federation of South African Women in its secretariat.
In 1990, she was chosen to be part of the ANC delegation that negotiated the peaceful transition with the government at Groote Schuur. In 1994, she was elected to the National Assembly of the RSA and served as a Member of Parliament from 1994 to 1996 before she was seconded to become an ambassador to Switzerland until 2000.
In 1996, Mrs Ruth was awarded an honorary Master’s Degree in Education by the University of the North West in Mahikeng. A scholarship was named after her by Huston-Tillotson University in Austin, Texas, in the United States of America. In 1998, the Medical University of SA awarded her an honorary doctorate. She has been the mayor of Naledi Local Municipality from June 2000 until May 2010. In consolidating the vision of the society and the country she liberated, this true activist and daughter of the soil continued to serve community in various capacities. She served on many boards, including being chairperson of the Swiss-South African Co-operation Initiative Trust.
Dr Mompati lived her life for the ANC and remained an ardent member of the ANC. We know that when she reaches the other side of life, she will join the rest of the heroes and heroines of the ANC. We know that when the roll call is read on the parade ground, we will find the name of Dr Mompati among those who will be present and ready to work for the ANC.
We say a fond farewell to this pulse of our movement and a great South African. We thank her for her sacrifice and tireless work in fighting for our people. Indeed, she has run the race, fought, and became the victor. All that awaits her is the crown from John Langalibalele Dube, Alfred Xuma, James Sebe Moroka, Nkosi Albert Luthuli, Oliver Tambo, Ida Mtwana, Lilian Ngoyi, Dorothy Nyembe and many other departed leaders of this glorious movement. May her soul rest in peace. I thank you. [Applause.]
Ms T G MPAMBO-SIBHUKWANA
Mr M RAYI
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IsiXhosa:
Nksk T G MPAMBO-SIBHUKWANA: Sihlalo, egameni le-DA, nathi size kuzek’ emzekweni sisithi akuhlanga lungehlanga kusapho lwakwaMompati. Sithi malulale ngenxeba. Umama makaphumle ngoxolo. Sixhwithile kwihlathi elinguye sazenzela igoqo ukuze sithi kwakufika ingqele eqhaqhazelisa amazinyo simane sithatha iinkuni sibase ubulumko bakhe.
Sithi akuhlanga lungehlanga masilale ngenxeba isizwe sakuthi, isizwe soMzantsi Afrika. Sithi makahambe uMama uMompati. Ebesisikhukukazi wasifihla kukhetshe asabi naxhala, wondlala intliziyo yakhe see zava asabi namikhinqi, see khunubembe wakumka; saqumba saqalekisa. Asiqumbanga ke khona, asiqalekisi ke khona, sithi lala ngoxolo, Mama uMompati.
Ngathi ndiyakubona usisiqishimbana uququzela, usisinqinanqina nesiquququ. Lala ngoxolo mama, sohlala sikukhumbula. Uze ubaxelele nabadala ukuba sisalucanda udada lwentlalo enzima. Siza kuzabalaza, sizabalaze, sizabalaze kude kube ngomso. Lala ngoxolo, Mama uMompati.
Ms N P MOKGOSI
Ms T G MPAMBO-SIBHUKWANA
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Ms N P MOKGOSI: Deputy Chairperson, the EFF rises to express its sincere condolences to the family of Mme Ruth Mompati, her relatives, friends and the people of South Africa at large. We have indeed lost a veteran of the struggle, a stalwart and a comrade in the true sense of the word. We have lost a champion of the poor, an activist, a freedom fighter, a mother, a grandmother and a leader of our people.
Mme Ruth Mompati selflessly served our people when it was unfashionable to do so. And this was at the time when apartheid in South Africa was so vicious to our people that she risked her life in the process. We salute her for her bravery and selflessness under the circumstances she operated in at that time. Her love for our people and the country pushed her to rise up and take the liberation struggle call because to her, leadership was about putting the people first.
Mme Ruth remained committed to serving our people throughout her entire life until she passed away recently after a short illness. She is one of a generation of women who served our people in the first democratic Parliament and was later appointed as ambassador to Switzerland. But when she returned home after completing her diplomatic assignment, she never stopped serving. She continued serving in many other leadership roles in our country, all for the love of her people.
She was never the kind of leader to be involved in factional battles, nor was she a position monger. Mme Ruth Mompati died at a time when the current administration under Jacob Zuma has plunged our country into serious economic and social crisis. We believe that she passed on with a heavy heart, having to witness all the gains of democracy she fought so hard for being reversed.
Under the current government, corruption is the order of the day. It is under this current administration that we are dubbed the protest capital of the world; it is under this current administration of Jacob Zuma that the moral fibre of society has vanished due to a lack of exemplary leadership. The voice of reason in the so-called liberation movement has vanished, and all we see are careerists and opportunists who see nothing wrong in defending corruption - and Nkandla comes to mind. May her soul rest in peace!
Mr M KHAWULA
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Ms N P MOKGOSI
Mr M KHAWULA: House Chairperson, the IFP extends its deepest condolences to the family, friends and colleagues of Mama Ruth Mompati, especially in the ANC. This country indeed mourns the loss of a great soul who touched the lives of so many during her long and fruitful lifetime.
She was the recipient of the ANC’s highest honour, the Isithwalandwe award, and she was honoured for her exceptional qualities of leadership and heroism. She easily stood shoulder to shoulder with our greatest struggle heroes and heroines.
Mama Mompati’s life was a life of service to her people and her country. It was an accolade to the triumph of the will-to-good over all adversity, from her early days in the ANC in the 1950s to her life in exile and training in Umkhonto weSizwe. She held leadership roles in the ANC Women’s League and was a founder member of the Federation of SA Women. Mama Mompati had a magnanimous disposition of character, which endeared her to many and easily allowed her to play the role of mother to all.
In South Africa, the challenges of governance are so intense that it is not an easy task to complete two terms of leadership in government, but Mama Ruth was among the few who achieved this accomplishment. A great light has left our land, but her legacy will continue forever. Thank you. [Applause.]
Mr R J TAU
Mr M KHAWULA
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The DEPUTY CHAIRPERSON OF THE NCOP (Mr R J Tau): House Chair, as we pay tribute to one of the architects of our democracy, a selfless leader, a struggle veteran and a true icon of freedom justice, let us look at ourselves and ask ourselves what exactly we are doing to emulate such great towers.
Today we pay tribute to a leader who made concrete input into the democracy that we collectively uphold, while having contributed richly to the institutional advances that we have made as the national Parliament and, in particular, the Constitution that gave definition to the NCOP.
Today we are able to celebrate the apex of our democratic freedom - the existence of a functional democratic Parliament. This is due to the sacrifices and efforts of leaders such as Mme Mompati. She was part of the leadership collective that ushered us into an era of human rights, human dignity and equality for all; women and children in particular.
I therefore believe that it is acceptable to say that her voice finds clear resonance in the Constitution of our country, where its Preamble that allots equal status to all the citizens of our country, irrespective of colour or creed. Her legacy is also clearly recognisable in the continued echo to improve the material conditions of our people, in particular once more, women and children.
We also see this sentiment boldly resonating in our National Development Plan, which she would have been fully behind if she had the energy to do that. The NDP is the blueprint of South Africa’s development towards 2030. This is a clear indication of our collective resolve as a nation to put the empowerment of women on the agenda of our country’s growth path.
The national Parliament has also made formidable progress in advancing the women’s empowerment agenda. There are various structures at Parliament, in particular in the NCOP, that create a platform to accelerate the growth and development of women in our country. These include, among others, the Multiparty Women’s Caucus, which was instrumental in the early stage of the formation of our Parliament; the annual Women’s Parliament and the executive has a designated ministry, which I think is one of the things we should have celebrated immensely.
It is indeed our solemn belief, on behalf of the NCOP, that the legacy of Mme Ruth Mompati straddles the tapestry of both our society and the governing precepts of our Constitution. The national Parliament clearly derives its institutional architecture from the iconic views of a generation of leaders such as Mme Mompati, Nelson Mandela and many others, who were fearless in their pursuit of justice and dignity for all. It is therefore incumbent upon us all to ensure that we preserve her legacy by steadily advancing the ideals that she stood for, lived for and died for.
I want to conclude by stating that some of us were fortunate to be around her while she was still alive. There is something that many people might unfortunately not be aware of, or that they may not remember, and that is that in actual fact Vryburg was part of the Northern Cape before the redemarcation of our country in 1994. The kind of leadership she provided at that stage epitomises the kind of a person she was.
She had the opportunity during the transitional period to be the first premier of the Northern Cape, which she decided not to do. She rather went back and joined her hometown in Vryburg. Even in the North West, as a new province, she had the opportunity once more, as a senior cadre of the movement, to have availed herself as the premier of the North West, but she decided to give that opportunity to the new generation.
This is a reflection of the kind of person she was: selfless, not about herself but about our movement and how we can deepen the national democratic revolution. How do we ensure that the society we construct is a society that will ensure that all of us will contribute to the creation of a nonracial, nonsexist and democratic South Africa. It is just unfortunate that we have lost her at this age, because there is a lot that we could still have learnt from her.
She was one person who would not mind to tell you straight if you were wrong. That is why some of us are proud to have listened to her and worked with her as the former regional chairperson of the ANC in the then Northern Cape region. To her, her family and the nation at large, we say ...
Setswana:
Tsamaya sentle, Mama. Re tla dula re ntse re go gopola. Re tla tswelela pele go tsamaisa tiro ya gago. Ke a leboga. Thank you very much. [Applause.]
Debate concluded.
The Council adjourned at 16:25.