Hansard: NCOP: Unrevised Hansard
House: National Council of Provinces
Date of Meeting: 03 May 2016
Summary
No summary available.
Minutes
UNREVISED HANSARD
TUESDAY, 3 MAY 2016
____
PROCEEDINGS OF EXTENDED PUBLIC COMMITTEE – NATIONAL COUNCIL OF
PROVINCES
____
The Council met at 14:00.
The Deputy Chairperson took the Chair and requested members to
observe a moment of silence for prayers or meditation
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
NOTICES OF MOTION
Ms E C VAN LINGEN: Hon Deputy Chairperson, I hereby give notice that
on the next sitting of the Council I shall move on behalf of the DA:
That the Council debates the DA‘s 15 Ministries Policy which
details a plan for a configuration of South Africa‘s executive and
the realignment of associated national departments pared down to
15 ministries linked to spending priorities that promote economic
growth, job creation and saving an estimated R4,7 billion a year.
That the Council -
(1)
debates the slow pace of employment equity in the top
management position and the private sector and according to
the 16th Commission for Employment Equity Report released on
25 Monday, white people fill 68,9% of top management position
which is more than six times their economic active population
of 9,9%;
(2)
further debates that not only are top management position in
the private sector allocated to white males in particular but
opportunities for promotion and training also remain
inherently linked to race and gender at more senior level
according to the report; and
(3)
finally debates the fact that report also states that black
people by and large populate the public sector, while white
people are concentrated in the private sector. The report
also reveal that males still dominate the private sector at
76,8%, local government at 72,8% and national government at
66%.
Thank you.
Ms T G MPAMBO-SIBHUKWANA: Hon Chairperson, I hereby give notice that
on the next sitting of the Council I shall move on behalf of the DA:
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That the Council debates the increasing occurrence of rape and
sexual assault facing women in South Africa and the efficacy of
the SA Police Services when dealing with these matters.
Thank you.
RULING BY HIGH COURT URGING THE NATIONAL PROSECUTING AUTHORITY TO
ENSURE JUSTICE
(Draft Resolution)
Mr G MICHALAKIS: Hon Deputy Chairperson, I move without notice on
behalf of the DA:
That the Council -
(1)
notes the ruling of the North Gauteng High Court‘s full bench
that the former head of the National Prosecuting Authority
add in his decision not to pursue 783 charges of corruption,
fraud and racketeering against President Zuma, stating that
this decision was irrational;
(2)
also notes that this concludes the DA‘s seven-year battle to
ensure that justice prevails and the charges relating to the
multibillion dollar arms deal are reinstated;
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(3)
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further notes that these charges were dropped in 2009, clearing the way for Mr Zuma to be elected President; and
(4)
finally welcomes the ruling of the High Court and urges the National Prosecuting Authority to do everything within its power to ensure that justice is served in a free and nonpartisan way.
Motion is not agreed to.
PROPOSAL FOR THE PRESIDENT TO REJECT THE PURCHASING OF THE NEW
PRESIDENTIAL JET
(Draft Resolution)
Ms B ENGELBRECHT: Hon Deputy Chairperson, I move without notice on
behalf of the DA:
That the Council -
(1)
condemns the decision by the Armaments Corporation of SA,
Armscor, to publish a tender for the lease of an
intercontinental VIP aircraft for President Zuma, as we
believe that such a procurement is wasteful and an insult to
poor South Africans;
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(2)
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notes that there is no need to acquire a new luxury
presidential jet so long as the current jet Inkwazi, remains
under utilised and other alternatives such as commercial
travel represent a viable alternative;
(3)
calls upon the President to reject the purchasing of this new
presidential jet given the dire state of South Africa‘s
education system, the drought and the rampant inequality.
The motion is not agreed to.
MOTION OF CONDOLENCE
(The late Mudene Smuts)
Mr G MICHALAKIS: Hon Chairperson, I move without notice on behalf of
the DA:
That the Council -
(1)
notes the sudden passing of Ms Dene Smuts, a Member of
Parliament for 25 years from 1989 to 2014;
(2)
further notes that she was a member of the Democratic Party,
DP, and in 1989 she became a member for the Groote Schuur
constituency;
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(3)
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also notes that Ms Smuts was key in negotiating on behalf of
our party for a more open and free society and it is
especially her contribution to the drafting of the Bill of
Rights for which she will be remembered. Mrs Smuts continued
to serve as a Member of Parliament for the DP and later the
DA in the first, second, third and fourth democratic
Parliaments;
(4)
acknowledges that she was always steadfast in her principles
and her commitment to the ideals of a liberal democracy. She
is without a doubt one of the greatest parliamentarian of a
modern South Africa; and
(5)
sends its sincerest condolences to her family and conveys to
them the gratitude of the entire nation for her devotion and
service to the establishment and development of our
democracy.
Motion accordingly agreed to in accordance with section 65 of the
Constitution.
CONDOLENCES TO FATHER ON THE LOSS OF THREE CHILDREN BY FIRE
(Draft Resolution)
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Mr L B GAEHLER: I move without notice on behalf of the UDM:
That the Council -
(1)
notes with sadness that a father from North West, Mr Fanie
Mogale, has suffered the loss of his three children, a
daughter-in-law and two grandchildren;
(2)
further notes that Mr Mogale‘s family perished because of a
fire that erupted while they were sleeping in their fourroomed shack;
(3)
recalls that firefighters from Ratlou Local Municipality,
about 70 kilometers away, came to the rescue three hours
after the fire broke out; and
(4)
pleads with government to assist communities where there is
no housing available for families to provide material that
lasts and is fire resistance.
Motion accordingly agreed to in accordance with section 65 of the
Constitution.
RE-ESTABLISHMENT OF AN AD HOC JOINT COMMITTEE ON APPOINTMENT OF
BOARD MEMBERS TO NATIONAL YOUTH DEVELOPMENT AGENCY
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(Draft Resolution)
The CHIEF WHIP OF THE NCOP: I move without notice:
That the Council -
(1)
subject to the concurrence of the National Assembly -
(a) re-establishes the Ad Hoc Joint Committee on Appointment
of Board Members to National Youth Development Agency
with the same composition, membership, chairperson and
powers as its predecessor;
(b) refers the report of the Ad Hoc Joint Committee on
Appointment of Board Members to National Youth
Development Agency back to the committee which originally
considered it for further consideration and report; and
(c) sets the deadline by which the Ad Hoc Joint Committee
must report on 19 May 2016.
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.
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Motion accordingly agreed to in accordance with section 65 of the
Constitution.
ESTABLISHMENT OF A STANDING COMMITTEE OF THE POWERS, PRIVILEGES AND
IMMUNITIES OF PARLIAMENTS AND PROVINCIAL LEGISLATURES ACT 4 OF 2004
(Draft Resolution)
The CHIEF WHIP OF THE NCOP: I move without notice:
That the Council -
(1)
establishes a standing committee in terms of section 12(2) of
the Powers, Privileges and Immunities of Parliaments and
Provincial Legislatures Act 4 of 2004, the committee to -
(a)
consists of six, ANC members, two, DA members, one, EFF
member and one member for smaller parties; and
(b)
exercises those powers in Rule 103 that may assist it in
carrying out its task.
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.
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Motion accordingly agreed to in accordance with section 65 of the
Constitution.
ADOPTION OF THE FIRST REPORT OF JOINT RULES COMMITTEE
(Draft Resolution)
The CHIEF WHIP OF THE NCOP: I move without notice:
That the Council -
(1)
notes that on 29 March 2007, the NCOP and the National
Assembly, respectively, adopted the First Report of Joint
Rules Committee, 2007, tabled in the Announcements, Tablings
and Committee Reports on 27 March 2007, which contained the
Governance Model for Parliament;
(2)
further notes that the Financial Management of Parliament and
Provincial Legislatures Act 10 of 2009, previously the
Financial Management of Parliament Act 10 of 2009, provides
that an oversight mechanism of Parliament must maintain
oversight of the financial management of Parliament;
(3)
recalls that on 26 November 2015, the NCOP and the National
Assembly, respectively, adopted the First Report of the Joint
Rules Committee, 2015, tabled in the Announcements, Tablings
and Committee Reports on 20 November 2015, which included new
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joint rules for a Joint Standing Committee on the Financial
Management of Parliament;
(4)
recognises that the governance model of Parliament adopted by
the NCOP and the National Assembly on 29 March 2007 is
inconsistent with the Financial Management of Parliament and
Provincial Legislatures Act; and
(5)
resolves, subject to concurrence of the National Assembly, to
abolish the governance model of Parliament.
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.
CONSIDERATION OF REVENUE LAWS AMENDMENT BILL [B 4B – 2016] (NATIONAL
ASSEMBLY – SEC 77) AND REPORT OF THE SELECT COMMITTEE ON FINANCE
THEREON, (ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS, 16 MARCH
2016, P44).
Mr C J DE BEER: Hon Chairperson, the purpose of the Revenue Laws
Amendment Bill [B4 - 2016] is to postpone certain provisions in
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respect of the annuitisation of retirement benefits for provident
funds and to correct provisions dealing with the calculation of
deductions in respect of contributions to defined benefit retirement
funds. The Select Committee on Finance and the Standing Committee on
Finance held public hearings on 3 March 2016. Written submissions
were received from the following: Association of Savings and
Investment SA, ASISA; Bowman Gilfillan; Congress of S A Trade
Unions, Cosatu; National Union of Metalworkers of South Africa,
Numsa; Mr A Crawford; Cashcows.com; Business Unity of South Africa,
Busa. Oral submissions were received from the following: ASISA;
Cosatu and Numsa. The harmonisation of pension funds, retirement
annuities and provident funds is necessary to ensure equal and fair
treatment in respect of taxation and access to benefits at
retirement. The concern raised by the labour unions is on the
requirement of members of provident funds to annuitise two-thirds of
their retirement benefits. However, this process has to take account
of the lower life expectancy of low income workers compared to other
income strata; and that annuitisation could prevent workers from
bequeathing to their beneficiaries effectively. It is therefore
imperative that a holistic approach is taken in respect of
retirement funding reform, including meaningful consultation with
all stakeholders. This is very important, the consultation process
with all stakeholders.
The committee endeavoured to secure a compromise between the
concerns from organised labour who maintain that the piecemeal
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reform process is detrimental to their members and wanted a removal
of the clauses referring to annuitisation altogether; and National
Treasury‘s position that the annuitisation provisions be deferred
for two years. The committee also took into account the needs of the
industry for certainty in the reform process, which impacts on
investment in systems to comply with the legislation. The outcome is
a form of conditional deferment — the deferment is agreed to but
there are conditions requiring by the National Treasury to
concertedly negotiate with organised labour and other relevant
parties over the next two years to seek a consensus on the contested
provisions. Furthermore, retirement funding reform must also take
into account that the design of annuitisation by provident funds
must not undermine the current accepted practices in the rest of the
retirement industry, particular for pension funds and retirement
annuities. In this regard the scope for the practice of taking
advantage of the differences in tax and annuitisation benefits
between pension funds, retirement annuities and provident funds by
transferring funds between these must be reduced. Pursuant to the
above, both National Treasury and Cosatu agree, and this is
important, to further constructive engagements, and this is where
the committee‘s work was very important, National Treasury further
commits to engage with other stakeholders who are not part of
National Economic Development Labour Council, NEDLAC.
The committee recommends that: The comprehensive social security
reforms paper shall be tabled at the NEDLAC established in terms of
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the National Economic Development and Labour Council Act, 1994 (Act
35 of 1994) for consideration within three months of the
promulgation of this Bill. Issues for deliberations in NEDLAC will
include: The appropriate package of government social security
measures; the retirement fund reforms. The National Treasury must
report on progress on negotiations to the committee every quarter.
The Minister of Finance must submit written reports every six months
to Parliament regarding the progress on the consultations at NEDLAC.
The Minister must also submit the first report to Parliament before
15 December 2016; and, provide a second report by 15 June 2017.
All participants in the process at NEDLAC commit to actively
participate in these deliberations, and Parliament will monitor
that. Should annuitisation be scrapped altogether the tax deductions
for provident fund members will cease. Notwithstanding the
consultations taking place at NEDLAC, the Minister shall provide all
persons the opportunity to make representations on the issues being
deliberated at NEDLAC. The National Treasury should also engage
stakeholders that are not represented at NEDLAC as well. The Select
Committee on Finance, having considered and examined the Revenue
Laws Amendment Bill [B4A - 2016] as referred to it, and classified
by the Joint Tagging Mechanism, JTM, as a section 77 Bill, reports
on the Bill without amendments. I so move, thank you Chair.
[Applause]
Debate concluded.
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Declaration(s) of vote:
Mr O S TERBLANCHE: Hon Deputy Chairperson, hon members. I thank you
for the opportunity to make this declaration on behalf of the DA.
The Revenue Laws Amendment Bill [B4 – 2016] is a fitting example of
how the ANC bows to Cosatu when there is a conflict of opinions, in
essence, when Cosatu demands anything from ANC, the government and
Parliament, stop to accommodate them. While the ANC fights Cosatu‘s
battles, Cosatu is freed up with more time to lie to the people of
this country. When it comes to the Revenue Laws Bill, what Cosatu
wants, is bad for workers, bad for people retiring and bad for South
Africa.
Cosatu may be more about you more than you. [Laughter.] Cosatu
threatened to strike, wage this information campaign, claiming that
they were not consulted when in fact they were. Once the ANC
government yielded in to Cosatu‘s demands, this Bill was tabled
within two weeks in Parliament. In the Select Committee on Finance,
my colleague, hon Essack referred to concern of the Association for
Savings and Investments in South Africa, ASISA, that any change in
the act‘s implementation would cause administrative difficulties as
the industry prepared to implement the act as legislated. I further
enquired about the true intentions of trade unions and other
stakeholders, whether they wanted retirement reforms. Freedom means
being able to deal with your own financial matters. For this, we
need to ensure people‘s pensions are financially secure. Thus, the
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DA does not support the further delay and obviously opposes the
Bill. I thank you.
Ms T MOTARA: Deputy Chairperson, the ANC noted that there has been a
lot of debate as to whether the state has a role to play in the way
in which citizens undertake responsible saving, following the
introduction of these amendments. Not only from organised labour
formations, who represent a vast majority of members of retirement
funds but ordinary citizens have also raised concerns as to whether
the state should have any responsibility or interest as to how its
citizens wish to spend their hard earned savings at the time of
retirement.
Opposition has accused the ANC of pandering to the emotions and
sentiments of Cosatu as one of its affiliates, and has been accused
on acting on pressure exerted by the trade union movement. In its
deliberations with all role-players, many issues were raised, add to
the concerns which have been raised over time but inadequate
attention was given to these. As parliamentary committees, we have
impressed upon National Treasury to conclude on the issues raised in
the best interest of South Africans and an equal responsibility
rests on the shoulders of the state as well as trade union leaders
to communicate the same message to all South Africans, regardless of
whether the outcomes outrightly favours one or the other party.
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Ours is to listen to any and all aggrieved by what we deem necessary
to pass as legislation. As ultimately, the legislation we pass will
have lasting effects on citizens. We do not want a situation were we
are warned of possible negative outcomes, pass legislation and face
those realities later. Of course, not all parties will be entirely
100% satisfied with the outcomes but what we want is to see finality
in the matter before us. There are more common areas of agreement
then disagreement, provident and pension funds should most certainly
be harmonised and receive the same tax treatments.
There has to be integrity of our retirement system and inevitably,
this is what we need to work towards. So, whether you present
yourself as an organised affiliate or a voice of concerned citizens,
parliament has the responsibility to listen to and take action in
respect of South Africans. The ANC therefore supports the
amendments. [Applause.]
Mr L B GAEHLER: Chairperson, the UDM supports the extension of the
Bill for the following reasons;
Mandiyibeke ngesiXhosa. Uqoqosho alukho sezandleni zabantu bakuthi.
Ngoku ke into eyenzekayo kukuba ... [Let me say it in isiXhosa.
Economy is not in the hands of our people. What is happening now is
that ...]
... these poor people use these pensions, ...
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... abanye bazakhele izindlu ... [others to build their houses ...]
... because there is something that this government has never
addressed, the economy of this country, which is a very few hands.
So, these poor people use these pensions to build their houses
because they cannot afford, because of the low salaries they have,
so we will support the extension of the Bill. Lastly, some of these
pension monies are being misused by the ruling party for Black
Economic Empowerment, BEE, they are loaned out to members of the
ruling party that is why we are saying, we do not support, we
support the Bill and we hope that these pension monies, won‘t be ...
this Bill will not take place. Thank you.
Mr M KHAWULA: Chairperson, Mhlonishwa, Sihlalo, kuyishwa ukuthi
kwaphangwa umdaka kwaphasiswa lomthetho, kungacatshangwanga kahle.
Sesikujwayele la eNingizimu Afrika ukuthi kuthathwe izinqumo,
zijikwe, kuthathwe izinqumo, zijikwe. (Translation of isiZulu
paragraph follows.)
[Hon, Chairperson, it is unfortunate that approving of this Bill
happened in haste, without considering it correctly. We are now,
here in South Africa, used to making decisions and then changing
them.]
But what I want to say, to this hon House, and South Africa, is that
the constituency of the IFP is largely the working class and the
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poorest of the poor and this law was very oppressive to that
constituency and therefore the IFP supports the Bill on the basis of
those grounds but with a warning that whenever these two Houses of
Parliament are considering legislation,
Kufanele kucatshangisiswe kahle ukuze singaze sizithole enkingeni
yokuthi sihlale sinquma, sihlehle, sinquma, sihlehla. I-IFP yesizwe
iyakusekela ukubuyekezwa kwalomthetho. Ngiyathokoza. (Translation of
isiZulu paragraph follows.)
[We must consider Bills correctly so that we will not find ourselves
deciding and then having to reverse our decisions all the time. The
IFP supports the reviewing of this Bill. Thank you.]
AN HON MEMBER: Federalism.
The DEPUTY CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: We have
already had a declaration by the DA.
Ms E C VAN LINGEN (POINT OF CLARITY): Deputy House Chair, on a point
of clarity:
The DEPUTY CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: Yes.
Ms E C VAN LINGEN: We actually have an executive undertaking from
Minister Gordhan, where he said that every single piece of
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legislation that will be passed in South Africa today must have a
socioeconomic impact assessment, my question is, has that being
done?
The DEPUTY CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: Hon
member, I am afraid that you are making a declaration.
Ms E C VAN LINGEN: No, no, no, I am not, I am asking a point of
clarity. Has it been done?
The DEPUTY CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES: No, no,
that is a point for debate and I would not entertain that point. Hon
members, political parties have had their opportunity to make their
declarations of vote. I shall now put the question and the question
is that the Bill be agreed to because of the rule that we are
applying, hon members will then vote, in their own capacity or
individually. Just check whether your machines are working, so that
we proceed with the voting. Are they working? I therefore declare
the voting as open. You are not logged on? There is one member who
is not logged on. Voting is closed. According to the results, as I
look at them, the majority of members voted in favour
Question put: That the Bill be agreed to.
I therefore declare the Bill as agreed to in terms of Section 75 of
the Constitution.
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Bill accordingly agreed to in accordance with section 75 of the
Constitution.
APPROPRIATION BILL
(Policy debate)
Vote No 25: Economic Development:
The MINISTER OF ECONOMIC DEVELOPMENT: Hon Deputy Chairperson, hon
members, it is my pleasure today to take part in the policy debate
on the Budget Vote of Economic Development, the department and the
entities.
During 2015, the economy for the first time crossed the R4 trillion
GDP mark and total employment levels reached, also for the first
time, 16 million jobs. Provinces are where the R4 trillion economic
activity takes place, where jobs are created or lost.
National government creates the overall framework within which
provinces seek to improve the lives of South Africans. In addition,
the national sphere supports, funds and enables projects in each of
the nine provinces. Provincial economic development, hon members,
therefore needs a strong national framework.
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I wish to point to four examples in this policy debate namely
competition policy, trade, industrial funding and infrastructure,
where we are providing that strong framework. First, competition. To
power up the economy we need improved competition with increased
jobs, small business opportunities and industrialisation as the
targeted outcomes. It requires tough action against cartels and
monopolies, and careful evaluation of the impact of mergers and
acquisitions.
Over the past 12 months the competition authorities investigated
cartels and price-fixing in a number of industries including steel,
the auto components sector, glass products and the farm supply
chain. In addition to the R1,4 billion fine imposed on construction
companies, government has engaged those companies concerned in a
broader reparation package to financially compensate the state, to
transform the sector and to sign integrity commitments to ensure
that there is no collusion or corruption in their dealings with
government, with each other and towards other private sector
clients.
Our actions, therefore, against cartels have begun to have an
impact. However, hon members, more needs to be done. From Sunday,
which was celebrated as International Labour Day, new provisions in
the law came into effect that make it a criminal offence for
directors or managers of a firm to collude with their competitors to
fix prices, to divide markets among themselves or collude in
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tenders. They expose themselves to time in jail if they are
convicted.
Hon members, the Competition Commission considered 408 company
mergers and acquisitions in the past year. And of these, something
like 98% were approved. In some, public-interest conditions were
set.
And I would like to share with the hon members in this august House
what it is that economic development does; what is this department‘s
role in a matter like this. And I illustrate it with reference to
the proposed takeover of SABMiller by AB InBev, a Belgium-based
company. Following engagement between ourselves and the company, an
agreed approach was reached in considering what we should put to the
competition authorities, and it includes the following provisions.
First, AB InBev committed R1 billion to a localisation effort for
farmers and other suppliers of inputs. Provinces can benefit from
that.
Second, R610 million of this will be used to support the development
of 800 new emerging farmers and 20 new commercial farmers so that we
produce local barley, hops, maize and malt, with the strategic
intent to create 2 600 new jobs in agriculture and turn South Africa
from a net importer of hops from other countries to a net exporter
of hops and value-added malt.
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In a ground-breaking commitment on jobs, the company agreed that it
will not retrench any worker involuntarily as a result of the merger
now or at any point in future, and it will maintain its workforce,
roughly 5 900 permanent employees, at its current levels for at
least the next five years.
Other terms dealt with economic empowerment, keeping the African
headquarters in Johannesburg, access for small brewers to fridges
and cooler space and promoting alcohol-free and low-alcohol products
in the South African market. It is the most comprehensive agreement
of its type placed before the competition authorities for their
consideration. And that is where government comes in, making sure
that when one company wants to buy another the public interest is
protected; that we are out there batting for the ordinary South
African; batting for small businesses, protecting jobs.
These competition interventions are not isolated actions but they
are part of a coherent strategy by government to ensure a better fit
between the legitimate interests of shareholders in a merger or
acquisition, and the public interest in jobs, in industrialisation,
in empowerment and in small business development.
I turn to trade next. South Africa exported R1 trillion worth of
goods and services last year. That is about one third of our GDP.
Last year, Africa overtook Asia to become the biggest single
regional market for South African products. We sold just over R300
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billion products and services to the rest of the continent,
supporting a quarter million direct jobs in South Africa. Over the
past 12 months we reduced tariffs on certain products. We
implemented antidumping duties on cement from Pakistan and
wheelbarrows from China – so please buy South African wheelbarrows –
and we gave protection to certain steel products.
Two weeks ago, I issued a trade directive that requires Itac,
International Trade Administration Commission of SA, to consider
commitments that companies make on investment, on jobs and on
industrial output when we look at whether to increase or decrease
tariffs.
Next, I turn to industrial funding and investment. Industrial
funding is fuel; it drives the expansion of factories, mines, farms,
economic infrastructure and tourism. The department itself helped to
unblock a number of investment projects. One example is a local
noodle factory which received grant funding to improve its
competitiveness and it now supplies Massmart. A new film studio was
supported in Johannesburg to strengthen the country‘s appeal as a
film-making location of choice.
A tender in the Northern Cape for water pipes was rewritten to
ensure that the specifications were aligned with local industrial
capacity. And a fruit canning operation in the Western Cape was
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supported to obtain electricity during the loadshedding period,
which saved their crops and 2 000 seasonal jobs.
Hon members, IDC, the Industrial Development Corporation, plays
quite an extraordinary role as a catalyst for new investment. In the
past 12 months, preliminary figures show that more than
R13,6 billion of new funding was made available by the IDC. These
are significant levels of new investment. They drive private sector
co-investment, and this helps to create and save thousands of jobs.
A particular focus is on developing black industrialists, women
industrialists and youth entrepreneurs. Let me give the example of
Masana Makhetha, a young entrepreneur who manufactures and installs
ventilation systems in the mines. There is also Manana Bogatsu, who
is in partnership to manufacture gas cylinders.
In the next 18 months 25 factories or investment projects of the IDC
will open up: A cogen plant in KwaZulu-Natal will open in May; a
cable manufacturing plant in Gauteng will open in August; a new
hotel in Limpopo will open in September; a pet food factory in the
Western Cape will open in November; a car parts factory in the
Eastern Cape will open next year and a wind farm in the Northern
Cape will open in October 2017.
Projects in Mpumalanga, Free State and North West have also been
financed. And five months ago the IDC signed an agreement during the
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Chinese President‘s state visit to South Africa for a possible new
automobile plant here in South Africa, with the initial capacity to
produce a large number or 50 000 units of sedans, trucks and SUVs.
The Chinese investor has provisionally earmarked – and I‘d like to
make this point – the Eastern Cape as the proposed location for the
plant, subject to feasibility studies.
I next turn to infrastructure. We are now investing more than a R1
billion per working day, every Monday, Tuesday, Wednesday, Thursday
and Friday, and this investment helps to improve the lives of
ordinary people: Charles Zitha from Soweto and Nomawethu Mvambo from
Buffalo City. The money helped us to build 160 new schools and about
a 100 000 new houses in the past 12 months, and to connect 245 000
houses to electricity. That, hon members, is a 1 000 houses
connected every day to the grid 52 days a year.
It helped to bring 1 700 Megawatts of new electricity into the
national grid. Let me give you an idea what that means; it‘s roughly
equal to what all the households consume in Nelson Mandela Bay,
Emalahleni, Polokwane, Mangaung, Buffalo City and Rustenburg
combined.
The R1 billion enabled us to lay a 100km of large water pipelines
that can convey billions of litres of water a week to communities
and businesses; to build 29 new clinics and one new hospital; to
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complete three buildings of the Mpumalanga University and new
student accommodation for more than 4 000 students countrywide; to
build taxis, trains, buses here locally, creating local jobs, and to
roll out Wifi in urban and rural areas.
The PICC, Presidential Infrastructure Co-ordinating Commission,
drives and co-ordinates this programme, and economic development
provides technical support on legislation to combat cable and metal
theft from public infrastructure.
To unblock bold programmes to address funding gaps we worked with
Eskom, the Department of Energy and others to secure the new R2,6
billion loan from the Brics New Development Bank to lay transmission
lines for the renewable energy plants.
There are many new megaprojects that will come into construction and
the line Ministers will announce the dates and the details thereof
in the next period. They include the Umzimvubu Dam; two massive
bridges as part of the N2 Wildcoast road from East London to
eThekwini - the Moloto Road; the raising of the Clanwilliam Dam and
the large water pipeline from the Mokolo and Crocodile rivers to
Lephalale in the Waterberg area.
Hon members, global and domestic growth levels remain largely
subdued. Job numbers have however grown. In the past calendar year,
jobs grew by 700 000.
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However there a new pressures, particularly in the mining and
related sectors. They are of concern to us and may result in job
losses in future. Unemployment numbers remain high, with many
millions of young people looking for work.
So, what is it that we need? We need, above all, a social pact on
commitments that we must all make – government, business and workers
– to pull the economy through these difficult times. I have asked
the Industrial Development Corporation to adjust its strategy to
support companies in distress due to the drought and these new
market conditions.
So this is what we are doing practically; we are investing in
infrastructure. We are boosting the investment by the IDC in
manufacturing, in green energy and in the other sectors that can
provide growth for the economy. We are working now with business and
labour to see how we can get broader agreements. Above all, we are
looking at the rest of Africa as an important market, building
infrastructure across border, opening up opportunities elsewhere.
Hon members, inclusive growth requires firm action against
corruption in the public and private sectors. It requires integrity
in our dealings in the economy, in state procurement and in the
services that public servants and public representatives render to
communities. All South Africans need to reach out and ensure that
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the culture of service and the fight against corruption are stepped
up.
As I conclude these introductory remarks in opening the policy
debate, hon Chairperson, I want to thank Deputy Minister Masuku,
particularly for the dedicated efforts and the partnership that is
leading the department‘s work with provinces and with
municipalities.
And finally, I wish to pay tribute to the memory of the acting
Director-General of Economic Development, someone that many members
of the Select Committee will know, Mr Kumaran Naidoo, who passed
away four weeks ago. He was a person of integrity, a pillar of
strength and a fine example of what a public servant should be.
Thank you. [Applause.]
Mr B G NTHEBE: Thank you, hon Chairperson, hon Minister, Deputy
Minister, special delegates, members of the House, distinguished
guests. We want to reassure the Minister that, as the select
committee, we share your pain. In our daily work, we have interacted
with Mr Naidoo and we know that he was a committed South African. As
the select committee, we are grateful that we became part of his
life. He is forever in our thoughts. To Mr Naidoo, rest in peace. He
quite excellently made sure that he empowers the select committee in
doing its daily responsibility.
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It is under a volatile economic climate that we are assessing the
department‘s deliveries for the term under review. We congratulate
the hon Minister, the Deputy Minister and your entire team of
committed South Africans. Congratulations are befitting to the
department for the clean audit outcome and for continuing to resolve
issues raised by the Auditor-General, like the absence of the
internal audit unit in the department. By doing that, we will be
strengthened, as we move forward, to ensure that the department
becomes what the select committee expects.
Hon Minister, we are mindful of your most difficult task of ensuring
a seamless co-ordination of government efforts, to attain economic
emancipation for our people. You are building an inclusive economy
and creating decent work, which requires the department to
strengthen the assistance from entities such as the Small Enterprise
Finance Agency, Sefa, with enterprise development and from the
Industrial Development Corporation, IDC, with private sector
investment support.
The Department of Economic Development provides broad oversight on
the work of the Industrial Development Corporation. I am pleased to
welcome the debate today and this focus on the important role of
industrial investment and the IDC in South Africa‘s economy. It is
Africa‘s biggest industrial bank. We are quite appreciative of that.
It pumps billions of rands a year into the national economy,
covering all nine provinces. I think all provinces can attest to
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that. It helps to create thousands of jobs in the economy, and may I
say, hon members from the DA, in the Western Cape too. There are
traces of what the IDC is doing.
As one of our most important development finance institutions, it
has contributed towards the industrial development of our own
country. We are quite appreciative of that. The latest data from the
IDC shows that new approvals of R13,6 billion have been issued by
the department. This happened in a tough economic environment where
many private investors are reluctant to commit, yet the department
was able to commit. This boldness of the IDC should therefore be
welcomed.
Hon Minister, I understand that one of the investments will be to
modernise the operations of Foskor that produces an important input
for fertilisers. I am from the North West and the rural part of this
country. Agro-processing and agriculture, in particular, is one of
the most crucial components of how we want to build the economy,
moving forward. Our economy needs it. The North West needs it and I
hope this will allow the price of fertilisers for small black
farmers to be cheaper and more accessible.
A few years ago, your department took action against the cartels in
the fertiliser sector. I hope the Minister and the DM will remember
that. I can see that this government has a real strategy to
transform the sector, to become inclusive and accommodative of small
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businesses that are growing, but also to cut down on cartels that
are beginning to hamstring those who are entering the market.
My province had been hard-hit by declining platinum prices. The IDC
can play a role to assist local companies to weather these storms.
Over the most recent financial year, the IDC approved R221 million
of the new investments to six companies located predominantly in the
North West, including a company called Chromtech Holdings, which is
partly owned by young people. Companies such as Prima Bake with 50%
women ownership were supported. Ninety new jobs will be created at
Brits Bag Manufacturers in the North West. These are just a few
examples that are visible and we are quite appreciative of them.
As parliamentarians, we wanted to see our development finance
institutions, DFIs, supporting the transformation of our economy. We
are therefore pleased to have noted that over the last six to seven
years, under the guidance of the Minister and the department, there
have been notable changes in the policy framework of the IDC.
A new policy framework has been put in place to allow the IDC to
expand its investments and at the same time, improve and increase
the development impact on jobs and localisation. A critical part
that we want to see, as the select committee, is localisation. The
IDC‘s funding target is R100 billion of investment approvals over
the next years. If the IDC can achieve this, which we, as the select
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committee, really want to see being achieved, it will help to deepen
the industrialisation in the country. We really want to see this in
the country.
We support the directive given last year that R23 billion should be
earmarked to encourage black industrialists, so that we can help to
drive the growth of the economy and assist those who are willing to
create jobs in the country. Women entrepreneurs will grow businesses
and create jobs. Young people will have access to funding and
employment opportunities.
Through the guidance of the department, the IDC has helped to
develop the green economy by investing R14 billion in green energy,
over the last four years. This is quite visible if you go to the
Northern Cape today. Hon Faber can attest to that.
The IDC investments have attracted private-sector investment to the
green sector and also helped the country to advance its energy
security. Rural provinces have benefitted from projects such as
solar power in the Northern Cape and wind farms in the Eastern Cape.
Lastly, what is particularly encouraging is that IDC efforts have
also focused on the manufacturing of components for these green
plants, thus deepening our localisation efforts.
The IDC has also reported on its job-saving and job-creating
targets. Please keep the pressure on them so that we can begin to
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create more jobs, especially in the main economic hubs of the
country.
Last year, the IDC announced its Black Industrialist Programme. We
will begin to see it being rolled out. We will follow this,
Minister. In the first year, the IDC approved R2 billion to 41
individual black industrialists in the productive sectors. It has
also increased its investment in businesses with women shareholders.
In the last year, R756 million was invested in businesses with women
shareholders in sectors such as mining, chemical manufacturing,
renewable energy generation and wind power.
Supporting businesses that empower the youth is a valuable
investment in the future of our country. We want to see more being
done by the IDC, in this regard, since uptake of the funds here has
been low. An amount of R159 million was approved in the last year.
We don‘t think that it is adequate, but it will make a serious dent
that we want to see. However, we note the IDC‘s commitment to youth
in its various programmes such as its internship programme where 116
young people have benefitted.
One thing I have noticed is how the department integrates the
efforts of the IDC with its own efforts, to unblock investment. The
officials should take note that more concrete examples must be
showcased to Parliament, particularly in the select committee. We
want to appreciate your dedicated officials for making sure that we
get such examples of what we need to do.
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Minister, please investment more in the poorer parts of the country.
We want to see that. Even though the economic climate is very
volatile and not allowing us more space, the department has been
able to exercise caution and fiscal prudence in ensuring that all
other issues that are budgeted for are within the budget. For all
these reasons, the select committee is quite happy about the budget
presented and we want to support it. Thank you.
Ms E C VAN LINGEN: Hon Chairperson, hon Minister, hon members, during
hon. Minister Patel's Budget Vote address in the National Assembly,
he referred to the collusion of large companies during the
construction of the World Cup stadiums in South Africa as well as the
progress made by the Competition Commission.
The Minister further quoted a World Bank study on competition and
cartels in South Africa which held as follows:
In the case of four cartels in maize, wheat, poultry and
pharmaceuticals products which make up 15,6% of the consumption basket
of the poorest 10% conservative estimates indicate that around 200 000
people stand to be lifted above the poverty line by tackling cartel
overcharges.
The DA has raised a similar issue with the Competition Commissioner,
which affects the poorest and most vulnerable people in South Africa most
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specifically, 16,8 million beneficiaries of to SA Social Security
Agency, SASSA, a responsibility of the Department of Social
Development. The collusion here is that Nett has unfair access to all
the states' beneficiaries through its subsidiary Cash Payment
Systems, CPS.
Already the Department of Social Development has according to
Regulation 26 (a), only allowed a single funeral insurance deduction of
not more than 10% of a grant. This was done through 1 Life, a Nett 1
subsidiary. CPS has allowed the easy pay card to be issued for direct
loans from money line; another Nett 1 subsidiary. This is in total
contravention with the National Credit Act because telephonic
applications may be done for up to R1000 of the R1500 grant that can
be deducted every month and there is no loan credibility of the
client. Electricity and airtime are also in this fashion and
owners don‘t know where these deductions come from.
These deductions are unlawful and there is a substantial indication
that there is abuse of the state database and subsequently the DA
calls for an investigation to stop unfair and irregular collusion
of the highest order. The DA has laid charges with the Competition
Commissioner as in Case Number 2016Feb0050. We must call also on the
World Bank to come to the respective Select Committees and to
request them to do a further survey of the magnitude of this
disaster.
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I want to come to the Presidential Infrastructure Coordinating
Commission was established in July 2011 where 18 SIP projects were
identified and the National Infrastructure Plan was adopted in
February 2012.
The DA has persistently requested details of SIP projec ts in our
provinces for proper oversight and assistance through this
department. The hon. Minister keeps on informing us that this
department unblocks specific projects, funding and other
blockages. Quarterly reports go to the Coordinating Commission yet
we don‘t know what is happening and we can‘t do oversight.
In our previous meeting we again requested a list of the current
SIP projects in our province and only received a shortlist of the
Northern Cape. Upon further investigation the Minister's and Deputy
Minister's speeches were sent to us as a list for our provinces.
The list of some of the SIP's, according to a written question
that we submitted in August 2014 are still a concern to us. If we
look at the road to rail shift through Mpumalanga and Richards
Bay, how the capacity of that line was increased?
We then looked at the Durban-Free State-Gauteng logistics and industrial
corridor and we want to know what progress has been made there on the
road to rail shift. When we look at the Municipal Infrastructure
Project, I can remember the state of the nation debate in 2012 when
we were so hopeful about the improvement in the critical service
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delivery and 23 District Municipalities were going to benefit through
this and 17 million people will be affected by yet another empty
promise by President Zuma. We have had no formal record of what has
been done
When it comes to SIP 8 the green energy in support of South
African economy, according to Integrated Resource Plan, IRP 2010,
and this project was supposed to open up green energy alternatives
for domestic and industrial use. The hon. Minister, I have to ask
you, why have you not unblocked a deadlock in this field to ensure
low voltage connections for small-scale embedded generation at low
voltage level at capacities below one megawatt?
When we look at SIP 18, Water and sanitation infrastructure, well as
you know when this whole project kicked in, 55% of these waste water
treatment plants were not functioning properly and today it is much
worse as we can see in the Green Drop reports that are evident before
us at the moment. The hon Minister, not even the Minister of Water and
Sanitation have done anything to improve these systems and there is
certainly a culture of no management, no maintenance and no
accountability.
I must say where the DA governs we govern honestly, transparently,
fairly and we are accountable. The ANC cannot say the same.
I thank you. [Applause.]
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Ms Z B NCITHA: Hon Deputy Chair, Ministers, Members of the NCOP,
good afternoon. One of the real successes of the ANC-led government
has been the National Infrastructure Plan and its implementation.
Infrastructure investment is fundamental to growth and job creation.
Students are unable to study without lights, factories cannot run
without energy and productivity is reduced without a good public
transport infrastructure.
The ANC‗s 2014 election manifesto emphasised the importance of
infrastructure to industrialisation. We as parliamentarians have to
ensure that government translate this goal into practical actions
and tangible results. The Minister has informed us of R1 million
being spent on infrastructure every working day. That is the
delivery by the ANC-led government. The results are there to be seen
by anyone who wants to be persuaded by the facts in many different
parts of the country. We all celebrated when one of the Medupi units
came on line last year adding a significant boost of energy to the
grid.
When I drive across the country, I can celebrate the ANC-led
government‘s investment in the improved state of our roads in
addition to clinics and schools we have built across the country
that provide services to our people. It is for this reason that I am
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pleased to welcome and support Budget Vote 25 of the Department of
Economic Development, because it is driving the technical work of
the Presidential Infrastructure Co-ordinating Commission, PICC.
South Africa is spending more on infrastructure than it has in
recorded history. That is a fact. The infrastructure that has been
built does not only change the lives of the people who use it, but
has also been changing the lives of the people who built it.
Infrastructure development has employed thousands of people,
particularly young people. If you examine the power stations,
thousands of young people are employed in the building of Medupi and
Kusile Power Stations, earning an income and gaining valuable
experience. But it is not only in the building of infrastructure
where jobs are created.
The Department of Economic Development has played a very helpful
role in promoting localisation. It has supported the development of
local industrial development and jobs to produce the components used
for the infrastructure projects. These linkages in the economy
create a base for our manufacturing and services sector to grow.
This is critical in these tough economic times where we need
accelerated growth and job creation.
A further benefit of the Department of Economic Development‘s role
is that it supports other infrastructure departments to focus on
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areas such as skills development, integrated long term planning and
getting value for money. I support the focus on the use of
innovative building technologies that reduce costs and improve the
speed of building schools, clinics and universities residence.
Well done, to the ANC-led government for getting R2,6 billion from
the BRICS New Development Bank, for the transmission lines to
renewable energy plants.
Infrastructure unlocks and supports economic activity such as moving
goods to the market and people between places of work and home. It
creates the necessary conditions to support entrepreneurship, small
business, township economies, black industrialists and regional
development whilst providing basic services to all our citizens as
promised in the Constitution.
One of the finest achievements of the Ministry and the Competition
Commission is the crackdown against cartels including in the
infrastructure space, as the Minister has alluded to.
The announcement of the reparation packages by the main construction
Company is good, so that the society can be compensated for the over
charging. Well done, Minister. Minister, you have been like a
bulldog against the cartels. We have seen from Sunday, it is a
criminal offense for directors to collude. I want to fully support
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your announcement and we will communicate this at provincial level.
Luckily my MEC is also here.
For the period ahead, we look forward to the department issuing
regulations to improve youth employment and industrialisation. We
must make more infrastructure components in South Africa to build on
the successful examples of buses, taxis and trains are now made here
in South Africa. That is the ANC-led government. And we support the
Budget Vote. [Applause.]
Mr S SOMYO: Hon Chairperson, Minister, hon members, esteemed guests,
it is indeed with a great appreciation that the Minister has opened
the window for us to see the change in the economic toughness that
the world faces today. It is a sad reality that the global growth
levels remains largely subdued and International Monetary Fund, IMF,
has recently reduced its focus of global and African growth. As a
country, our growth rate is very modest and truly below the levels
that are required to achieve our national objective at least at the
pace we wish to move. However, we must indicate that our country and
its people are known for their resilience and collective action at
times of hardship.
In the 2008 global financial meltdown, we were able to minimise the
negative impact of the crisis by putting together an inclusive
economic crisis response task team which drafted the hailed
framework response to the economic crisis. We recall that the
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framework was commended internationally for bringing together social
partners in forging a common response and was held up as an example
of how countries can respond in a sustainable manner to the
financial crisis.
Broadly, the Budget Vote speech by the hon Minister provides a
comprehensive framework for the country to minimise the impact of
the current negative economic climate. The speech is much focused
and in-depth on four critical elements of our economic strategy
which are: competition policy; trade; investments; and
infrastructure.
The manner in which this speech extrapolate and contextualise many
of the provincial policies speech pronouncements is a full proof
that we are indeed a unitary government with a policy coherence and
advance level of planning and implementation. Indeed a lot of work
has been done in the past twelve months to end anti-competitive
behaviour and to totally curtail the dominance of cartels in certain
sectors of our economy. We all know that it is often consumers who
are mostly exposed to highest levels of risk and at times remain at
the mercy of monopolies.
Our government and generally our people have suffered greatly from
price fixing and various anti-competitive actions of some
construction companies, hence it is important that we do not just
get comfortable with a R1.4 billion fine imposed on such companies.
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We believe that there ought to be a comprehensive repatriation
package which will ensure that the government is compensated, the
industry is transformed and that ethics are instilled for prevention
of future collusion and corruption. It is for this reason that we
welcome the Presidential Proclamation which brought into effect
certain sections of the Competition Amendment Act which criminalises
price fixing and collusion.
There are various ways in which we can boost our own growth and in
the present scenario trade with other countries is a fundamental
feature of our growth strategy. It is encouraging, as heard from the
Minister, to know that our exports have far surpassed the one
trillion mark, equal to 31% of our Gross Domestic Product, GDP. The
Africa centred strategy within our trade policy has resulted into
Africa overtaking Asia as the biggest single regional market for
South African manufactured products. What is more positive is the
fact that trade with Africa is more value adding.
It is indeed very critical that trade policy promotes
industrialisation, investment, innovations and thus job creation. It
is for this reason that we welcome the trade directive that you
issued on the 21st of April which will ensure that companies do not
rely simply on tariff protection or rebates but invest heavily on
new technologies, training of workers and product innovations to
maintain and increase their market share. This indeed puts job
creation and skills development at the centre of our trade policy.
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We are operating in tough economic conditions and as such all should
work to ensure that we survive these trying times. I notice that the
focus of the speech on investment is also giving the thumbs up on
investments and the various initiatives that have been undertaken by
government in this regard. Many may mistakenly think that little is
being done on the arena of private investment promotion. In the
Eastern Cape, we are a living proof that the Ministry of Economic
Development has been calling on the private sector to play its part
by investing in our economy. Without boasting, we can attest to the
fact that our Industrial Development Zones, IDZs, in the province
are ahead of the pack in terms of their own counterparts in
attracting investments, creating jobs and providing skills to our
people.
The Coega IDZs will once again achieve a hat trick of double digit
in terms of investment by securing 17 new investors into the IDZs.
Coega has attracted R23.5 billion worth of investment which is
unprecedented in the history of IDZs in the country. These
investments will see the creation of 889 operational and direct
sustainable jobs, 9 639 indirect operational jobs, and 3 085
construction jobs in the IDZs during the construction period. It is
indeed very much enlightening in the sense of the evolvement of the
IDC in the current phase.
Hon Minister, we are thrilled to hear that the deal which amounts to
close or even beyond R11 billion for one of the auto industry has
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been, somewhat to be, finalised to come in the province from China.
That is a good example of a role a ministry should play in
interacting with its own counterpart and making our own public
entities to work tirelessly in bringing investment to our own
shores. It is much appreciated.
We have also seen remarkable growth in renewal energy investments in
both our Industrial Development Zones. In the 2016-17 financial
years the East London Industrial Development Zones, ELIDZ, will be
constructing four energy generations projects which have been funded
through Special Economic Zones Fund. The combined investment value
for these projects stands at R2.1 billion and will create 1 277
construction jobs and a further 450 direct manufacturing jobs once
operationalised.
We are fully behind the drive of creating and nurturing black
industrialists in our country and it is for this reason that in the
2016-17 financial years, our IDZs will maximise their procurement
impact in support of Broad Based Black Economic Empowerment and the
development of Small, Medium and Micro-sized Enterprises, SMMEs and
women owned enterprises in the province. We are deeply delighted by
the investment of Mercedes Benz and Volkswagen in our province and
their continued interest in developing their new models in the
province.
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A lot of great work has being done in the improvement of our country
s infrastructure. Our people are beginning to feel the impact of the
work of the Presidential Infrastructure Coordination Commission,
PICC. There is now an increased speed in infrastructure roll out.
This is also creating jobs and growing our economy. The Minister has
mentioned the N2 between East London and Durban, as well as one big
dam which is a repository for changing the picture of both
agriculture and consumption in the area of Transkei in the Eastern
Cape which is well appreciated in terms of the dominance of
infrastructure built in the province.
The one billion a working day that is being invested by our
government on infrastructure is not only changing the lives of our
people but it is transforming our land‘s aesthetic outlook for the
better. This continued construction of modern schools, roads and
health care facilities will in no time see our country change from
having a colonial feel outlook.
In conclusion, hon Minister, the work you are doing is not only
changing lives in the immediate but as well as for future
generations. The focused and visionary speech you presented is a key
building block of a future South Africa and a necessary shield to
ensure that the negative impact of the current economic is somewhat
something that is going to be wiped out for the future. Thank you.
[Applause.]
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Mr N NTOMBELA: Hon Chair, hon Minister and your team, hon members,
thank you for affording us this opportunity. We meet today in this
House to celebrate and commemorate the 40th anniversary of the 1976
student uprising. These young people sacrificed their lives and
their youth for us to celebrate our freedom, as we are doing here
today.
In this same year again, we will be commemorating the 60th
anniversary of the women‘s march of 1956, fighting for the rights of
women.
Basho ngezwi elilodwa ukuthi ―Wathinta Abafazi wathinta Imbokodo,
uzokufa‖. [They said with one voice ―You strike a Woman, you strike
a Rock, you will die‖.]
This is the same year in which we have the local government
elections. Notwithstanding the current constrained economic
performance, the expectations of our people are there for us to
service and fulfil to the best of our abilities. This is the
context, when we debate this particular debate and we must take into
cognisance that these are two vulnerable sectors within our society.
In the last few weeks, Stats South Africa released a report on the
social profile of youth in our country between 2009 and 2014.
Amongst the issues it raised it noted the following.
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Firstly, the share of the youth, 15 to 34 years amongst the employed
declined by 2,9% from 42,6% to 39,8%. The total share of young
entrepreneurs declined by 2,6% between 2009 and 2014 from 29,8 % to
27,2%.
Secondly, the percentage of youth living below the poverty line
declined across all nine provinces.
This report aims to provide analysis relating to the socioeconomic
needs and the demographic profile of the youth in South Africa,
offering a broad understanding of the situation of young people in
the country, by highlighting some challenges and successes
experienced over five years. It provides details about challenges we
still have, as we see the issues facing young people within the
country. We can see how far we have moved in taking them forward, as
we address the other issues.
When we were dealing with this, one of the issues we have observed,
as a province, in the recent past, is the unfortunate situation of
xenophobic or afrophobic attacks, which happen around our townships.
The premier has instituted a special reference group, which gave a
report on happenings of a few weeks and some of the issues they have
identified as the underlying causes of the violence were, amongst
other things, concerns relating to poverty, inequality, competition
for scarce resource and unemployment.
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Many South Africans operating in the tuck shop and spaza shops
sector alleged that businesses owned by foreign nationals thrive due
to unfair advantages and that these improprieties directly undermine
the viability of locally owned businesses. Amongst these allegations
are that these businesses are not registered, they don‘t pay tax,
and foreign nationals sell products at prices below those that local
business owners conclude are feasible and are therefore receiving
illegal support.
Regarding the post xenophobic or afrophobic attacks, a number of
sessions were held by a cluster of government to engage and to try
and find solutions.
The key issue emerged that we still need to do more to support our
small businesses and we still need to do more to enhance and
regulate the operations of all traders, be they foreigners or local
people. They must be legalised in doing their work. It is a key
issue ... [Inaudible.] ... but if we can‘t do so, these sporadic
instances of violence will happen now and again, because of the
frustrations people experience.
I think we observed in the recent past in Mandeni, the burning down
of more than five factories and the impact it has on the provinces.
It scared a number of investors because they perceived the
environment as not being safe for them to trade. So, that is one of
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the key things. As the government of the day, we must always ensure
that, as we move forward, we are able to address the issues at hand.
If we don‘t do that, we will have problems, which we can‘t explain
at some point, going forward.
As the House meets, we need to have a serious introspection as to
whether the programmes we have developed over the years are yielding
the results; if not, how do we turn around the corner. Youth
unemployment is a ticking time bomb that we must address urgently
with short and long-term sustainable initiatives. It‘s time we move
beyond the Expanded Public Works Programme, EPWP, and its
initiatives.
It was within this context that the youth employment incentive
programme was initiated. Millions of young South Africans are
excluded from participating in the economic activity. As a result,
they suffer disproportionately from unemployment, discouragement and
economic marginalisation. High youth unemployment means young people
are not gaining the necessary skills or experience needed for their
own individual growth and development and the oomph to drive the
economy forward.
It is within this context that the call should be made on the
private sector to play its part. It is not the sole mandate of the
government alone to create jobs, but to create an enabling
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environment for such to happen. We have developed enough policies
and frameworks and it‘s time we accelerate implementation.
The question we must ask is: Are the institutions we have put in
place adequate, capable, understanding and grasping this triple
challenge of inequality, poverty and unemployment? Is there
continuity and synergy in what we do as national government through
provinces? Can we say the same about the role of state-owned
enterprises in relation to public entities at the provincial level?
These are some of the challenges that we observed and it needs to be
addressed, moving forward.
We have problems in our provinces with the role identified for the
Industrial Development Corporation, IDC, in complementing the role
of other state-owned entities at the local level. It seems as if it
does not play that role of complementing. There seems to be no
synergy and co-ordination. Therefore, we think that the ...
[inaudible.] ... need to be addressed and attended to, before we
will see progress, moving forward. As KwaZulu-Natal, we support
Budget Vote 25 on Economic Development. Thank you.
The DEPUTY MINISTER OF ECONOMIC DEVELOPMENT: Hon Chairperson,
Minister Patel, Ministers and Deputy Ministers present, hon members,
ladies and gentlemen, before I delve into the speech I want to
present, I just want to indicate to members that the PICC means the
Presidential Infrastructure Co-ordinating Committee. This committee
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is formed by the President, the Premiers, the metro executive mayors
and participating Ministers. The Department of Economic Development
provides the secretariat work and in the provision of this
secretariat work, we are not competing with any pessimists, but
rather against time and quality.
What are infrastructure projects? This is what we see when a school
is completed, just next door; when a clinic and a hospital are
built; when you see a road next to you; when we see Rea Vaya; when
you see new buses moving around Cape Town; when you see Saldanha
Bay; when you see transport and rail logistics; and when you see
green energy infrastructure in the Northern Cape. All of that is
infrastructure co-ordinated by the PICC and monitored through the
President, the provinces and the municipalities.
We do agree that there are others that still have some problems. We
are working with the various participating stakeholders to attend to
them at a local and provincial level, and some of them, in the
private sector. When we talk about unlocking them, we are not
talking about something that must happen as we ask. Some of them are
very complicated to deal with, but we know the progress we are going
to make.
We are debating the budget of a department that has used 99,7% of
its allocation and exceeded its target, while maintaining an
unqualified audit. This is thanks to its members of staff and the
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best brains canvassed through memorandums of understanding, MOUs,
with academic institutions and agencies, and the able, strategic
leadership of the Minister and the accounting officers.
Leaning on what the Minister has already outlined, in the past
financial year, we worked with a number of provinces to ensure
alignment to the growth path. We consolidated their plans to
bankable programmes.
This financial year, the Department of Economic Development will
focus on strengthening co-ordination and support to provinces to
ensure unblocking constraints to economic development and unlocking
funding for economic development programmes at a provincial level.
In summary, the department will be tracing the progress on the
Medium-Term Strategic Framework, MTSF, plans, assessing their
impact, and assisting provinces to unlock further opportunities for
taking forward their plans.
We will assess the impact of interventions on skills and youth
employment accords. We will have public report-backs on the progress
made. We will work with the Mpumalanga Technical Vocational
Education and Training, TVet, Council to explore a workable
partnership that can give us examples of an ideal TVet.
On the Nine-Point Plan, we will work with the lead departments to
accelerate the implementation of specific areas of the Nine-Point
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Plan from which to draw lessons. In the Eastern Cape, we will focus
on the oceans economy; in Limpopo, on Agri-parks; in Mpumalanga, on
industrial parks around steel beneficiation; in Gauteng, on township
economies, focusing on spaza shops and access to finance; in the
North West, on the Small Dorpies development; in the Free State, on
the poultry and beef value chain; and in KwaZulu-Natal, on the
aerotropolis.
By way of a bit of detail, the Department of Economic Development is
implementing the National Skills Accord and Youth Employment Accord.
In the previous financial year, we interacted directly with a number
of companies to take this process forward. We worked with the TVet
Council of Mpumalanga to develop a framework on which they can
engage private sector partnership. Discussions between Ehlanzeni
TVet College and RCL Foods, Nkangala TVet College and Eskom, and
Gert Sibande TVet College and Sasol are at an advanced stage. We are
hopeful that they will soon seal a very progressive partnership that
will present a model for a future, ideal TVet.
We also want to recognise the work being done by the likes of SAB
KickStart, Shanduka Black Umbrellas, the Anglo American Group
Foundation, Barclays Accelerator programmes, and others, who are
putting a shoulder to the wheel to ensure successful partnerships in
the development of SMMEs and co-operatives.
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On the effective implementation of the Nine-Point Plan, one of its
pillars is the revitalisation of agriculture and the agro-processing
value chain. In the past financial year, we worked closely with
Limpopo province and some of their municipalities to consolidate
their provincial and local economic plans. In most of them, the
notion of Agri-parks was prominent.
This year, we will work with the leading national department to
accelerate the implementation of the Agri-park in Musina. We will
use this as a base to understand the dynamics, challenges and
opportunities involved in this process. We will record the lessons
to be used to provide guidance in the implementation of similar
programmes in other municipalities.
The Eastern Cape has also shown enormous opportunities in
agriculture and agro-processing. We will also work closely with the
Eastern Cape and other coastal provinces to identify strategic,
bankable programmes exploiting opportunities presented by the oceans
economy, especially for the SMMEs, co-operatives and supplier
establishments.
In Mpumalanga, we will focus our attention on the incubation
programmes of steel products in the Steve Tshwete Municipality. We
will also link these developments to the streamlining of financial
assistance between the private sector and government, and between
national government assistance and provincial and local assistance.
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We have heard the input that has come from KwaZulu-Natal and will be
following up on that.
This year, the department undertook a small pilot study to
investigate levels of development finance institution, DFI, funding
in township-based enterprises in Katlehong, in Ekurhuleni, and
Mamelodi, in Tshwane. We trained 60 spaza shop owners and picked out
28 and helped them to present a compelling application to the Small
Enterprise Finance Agency, Sefa. We believe that if this should be
successful, we are going to use that to roll it out in other areas.
We think this is critical because, once you link these activities to
financing, it actually allows us to move forward.
The R13,6 billion invested by the Industrial Development
Corporation, IDC, is a case in point that has indicated what happens
when one provides financial support: 37% of the approvals in Limpopo
have created 6 391 jobs; 3% of the Mpumalanga approvals have created
3 207 jobs; 6% in the Eastern Cape has resulted in the employment of
1 341; 7% for KwaZulu-Natal has created employment for 1 478; 26% in
Gauteng has created employment for 1 725; 9% in the Northern Cape
created 973 jobs; and 1 353 jobs were created in the Western Cape.
We believe that all of these programmes that have been presented
today will allow us to be able to take forward the mandate of
creating inclusive economic growth and jobs. Thank you very much.
[Applause.]
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Mr M KHAWULA: Hon Chairperson, hon Minister, the International
Monetary Fund, IMF, put South Africa‘s forecast economic growth at
0,6% for 2016 and at 1,2% for 2017. These are the lowest ever
economic growth predictions for South Africa, and I want to agree
with the hon MEC, who also stated this. These low-level predictions
are reported to be due to a variety of factors, which include lower
export prices; policy uncertainty; and tighter monetary and fiscal
policy.
The department‘s core mandates include identifying priorities for
job creation, inclusive growth and industrialisation; and supporting
the alignment of the government departments around implementation.
Once again, the IFP reiterates its call for the Economics cluster
departments to be reviewed with a view to merging some of them into
one department. The Departments of Economic Development, Trade and
Industry and Small Business Development should have been left as one
department. This would have enabled Economic Development to achieve
the necessary monitoring and strategic guidance to economic
development initiatives in the country. At the same time, it would
save government a lot of financial resources, in line with practical
belt-tightening measures. This split of these departments
contributes to the unnecessary bloated nature of our Cabinet.
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The department is planning to spend 79% of its budget on transfers
and subsidies and R146 million for departmental operations. A total
of 60% of operations goes to the compensation of employees. This
leaves a minimal amount of the budget for the department, itself, to
implement other programmes. This is, indeed, cause for concern.
Because of the conglomerative nature of the field of operation of
the department, the department‘s impact on job-creation programmes
and projects is not clearly measurable. However, increasing numbers
reported on job losses and closures of industries remain another
major cause for concern.
Localisation and the creation of black industrialists are two
important projects of the department aimed at, amongst other things,
redressing the imbalances of the past. This is not easy because
those who are in are prepared to shut the door in the face of
government. As a result, these programmes are proceeding at a
snail‘s pace.
There is also a need for broader inclusivity in respect of the black
industrialist programme. This programme must consider deserving
South Africans in all nine provinces of our country, and not just a
few from certain selected provinces. So far, this programme has
failed to produce good results.
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The department seems to have a challenge in attracting the required
skills and retaining the already acquired, skilled personnel. This
is, again, due to the skills competition between the public and
private sectors. For example, former Minister Nene was wanted like
hot cakes in the private sector after being dumped by government.
This shows that some government decisions are not business-like on
issues of the economy.
One other serious area of engagement where departments in the
Economics cluster need to advise government appropriately is our
continued involvement in the Brazil, Russia, India, China and South
Africa bloc, Brics. If Europe, America and Africa have always been
our major and traditional trading partners, surely Europe and
America will not continue to make our participation in Brics easy,
economically?
These international economic blocs always have tough rivalry among
themselves. They always have a way of driving the economic thinking
of the world in a particular direction. We need to be asking
ourselves how it happened that South Africa lost her number one
status as the lead economy on the continent to Nigeria. The question
that needs to be considered in this case is the economic impact of
our membership in Brics vis-à-vis the trade relations we have with
non-Brics members. As to which one carries more weight than the
other, our foreign policy must tell us and give direction for the
purposes of growing our economy.
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In conclusion, the high levels of unemployment in the country
indicate that this department must pull up its socks – or else, we
are heading for a disaster. I thank you.
Ms B SCHAFER: Hon Deputy Chairperson, Ministers, hon members and
guests, the frequently used proverb, ―Actions speaks louder than
words‖ is so fitting to today‘s debate. Let us not pay lip service
to real challenge of creation of jobs and growth in South Africa. It
is only the hon member Ntombela from KZN that has raised the
importance of creating and enabling environment for jobs. You see
hon Chair, when it comes to real economic development and real job
creation, there‘s little doubt that the DA-run Western Cape is
streaks ahead of the rest of this country. While Minister Patel
tries to obfuscate his Department's failure to create an environment
for jobs for South Africans with his anecdotes, statistics South
Africa clearly shows just how well the Western Cape delivers.
Let's get into those facts. The Western Cape has recorded the
highest job gains in the country. 210 000 jobs have been created
overall in 2015, and in the last quarter 62 000. Jobs growth last
quarter of 2015 was at 9,7% in the Western Cape, compared to
nationally at 4,6% and Gauteng at 4,3%. The Western Cape has seen
337 000 net growth in jobs since 2009, despite a tough economic
climate nationally. The Western Cape now also has the lowest narrow
unemployment rate at 19,4%, and expanded unemployment rate at 22%
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[Applause.] Breaking the 20% unemployment threshold is a significant
tipping point. It is without a doubt that the Western Cape
government at large contributes to create a conducive environment
for job creation and economic growth.
Minister Patel in his budget speech at the National Assembly has
said and I quote, ―Economies are about people, not simply numbers
and policies" And I say to Minster Patel, that he and his ANC
national government have failed dismally to really tackle the unjust
disparities of the past and in particular, the economic exclusion
where so many South Africans find themselves today, the small
insider group of the ANC versus the massive outsiders the people of
South Africa. Minister Patel, your economic policies a mixed mash of
conflicting ideologies have equally failed the 8,2 million
unemployed people of South Africa. The truth is that the only
province making a real difference in job creation and to the people
is the Western Cape — whether you like it or not - this is a fact.
Actions speak louder than words.
Today, the World Bank has ranked the city of Cape Town as
one of the best cities to start a business in Southern Africa.
There is a reason why 70% of South Africa‘s venture capital, 50% of
South Africa‘s start ups and 56% of emerging companies are
reportedly all based in the Western Cape. There is a reason why the
Johannesburg Stock Exchange, JSE, has opened up an office here and
why cities such as Cape Town are selected as the location of the new
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French tech hub joining international cities such as Moscow, New
York, San Francisco, Tel-Aviv and Tokyo to foster the growth of
start up companies and to promote innovation. You see Deputy
Chairperson, it is because in the Western Cape start ups have a
voice in the economy and a voice which this government is eager to
listen to.
Chairperson, the DA-led Western Cape and the cities such
as Cape Town did not just arrive at this point. These milestones and
achievements are as a result of a number of provincial and local
government interventions. Firstly, the effective functioning of the
economy through sound governance and strategic focus on key economic
sectors; tourism, oil, gas and agro-processing. These are the
sectors of the economy that have shown not only the highest growth,
but have equally created the highest number of jobs. You see
Chairperson, the Western Cape does have a jobs plan. A real jobs
plan that works. Through project Khulisa, our focus on these three
sectors, we are doing well on the way to creating new jobs.
Secondly, the establishment and success of the Red Tape Reduction
Unit, to reduce the cost and improve the ease of doing business.
Since its inception in 2011, our Red Tape Reduction Unit has
assisted approximately 5 200 businesses, with a resolution rate of
around 90%. In partnership with Wesgro, the Red Tape Unit will be
working to establish the Western Cape investment centre, a platform
to ease the path for medium to large investors wanting to set up
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shop or expand their current businesses in the province. A sign that
we are on the right track, is when business speaks to the confidence
they have in this province, with the 654 000 square meters of
commercial and residential development that has been approved for
construction in this past year, nine times more than that of
Gauteng.
I say, business confidence in this DA-led province is at an all time
high. Markets react and the markets have spoken. Deputy Chair,
Minister Patel also throws words that is ―inclusive growth" around
in most of his speeches, yet his focus to create 100 black
industrialists, only one hundred is in stark contrast to meaning of
inclusive growth. Mr Mncube, the chief economist of the Competitions
Commission said it perfectly in a speech delivered in 2015. He said,
―to be inclusive, growth should benefit everyone, both in terms of
benefits enjoyed and in terms of access to opportunities for
participation‖.
This is a long term perspective and is not about just increasing the
benefits for the excluded group, my case in point. The people of this
country are becoming more and more frustrated. This frustration
stems in part from the realisation that the well connected elite
continues to enrich itself at the expense of the poor and working
class, but here in the Western Cape, you have a government that puts
citizens first. The national Portfolio Committee on Economic
Development has recently reported – just last month – that the
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economic department has failed to meet two key outcomes, that of
employment through inclusive growth - which is outcome 4 - and an
efficient, competitive and responsive economic infrastructure
network, outcome 6. It has yet been reported that the department met
only 45% of its annual performance targets on outcome 4 at the end
of March 2015, and 46% on outcome 6. Growth focussed for 20l6-17, is
only around 0,9%.
I agree with my colleague in the National Assembly, when he
suggested that Minister Patel‘s Department of Economic Development,
should be shut down and the economic policy co-ordination should be
send firmly into the hands of National Treasury where I believe it
will do much better. The Western Cape will continue to do what it is
doing to creating an enabling environment for jobs and growth, and
to deliver on its promise of making Western Cape the fastest job
creating sector and province in this country. I thank you
Mr E MAKUE: Hon Deputy Chairperson and members, hon Minister Ebrahim
Patel, Deputy Minister Madala Masuku, representatives, leadership
from the Provincial Executive Councils, the Economic Development
Department, the EDD, briefed the Select Committee on economic
development on the 12 April 2016, in preparation of this important
Budget Debate. The EDD team was ably led by the Deputy Minister
Madala Masuku, interestingly, none of the DA members who were had
any relevant questions to raise, precisely, because of the competent
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manner in which the presentation was done for us by the Deputy
Minister and the team.
The briefing utelised the following documents: The EDD Strategic
Plan, which I recommend that the opposition parties read and if they
do not understand they ask questions; The Annual Performance Plan,
which includes the budget per Medium Term Expenditure Framework for
2016; the more detailed EDD Performance Plan expanded beyond 2015\16
to 2016/17; 2017/18; 2018/19 up until 2019/20. Also we had a
brilliant presentation by the Deputy Minister on Economic Indicators
by provinces. And we will show hon Schafer from the DA what is
happening in other provinces.
Some members of this House may be unclear of the role of the
Economic Development Department and this has already been apparent
from the irrelevant remarks during this debate. It would, therefore,
assist this House when I reiterate that the core mandates of the
Economic Development Department are two: Firstly, it is to identify
priorities for job creation, inclusive growth and industrialisation.
‗Identify‘ operating word. Secondly, to support alignment of the
state around implementation. Thirdly, is to oversee and provide the
strategic direction to development finance institutions. And then,
fourthly, to provide strategic direction on competition policy and
trade administration matters through oversight of regulatory bodies,
like the competition authority and also the International Trade
Administration Commission, that is preferred as ITAC.
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The ANC, in its 2014 election manifesto, promises jobs and in there,
we are saying, institutionalise long term planning, integration and
coordination capacity within the state to drive consolidated
industrialisation and infrastructure development programmes for
inclusive growth and job creation. Then, just another point, to
accelerate the rollout of our massive economic and social
infrastructure programme, especially in energy, public transport,
ICT and water supply to unlock economic opportunities to create jobs
and to improve the quality of life of our people.
Unlike those in the DA, who are talking about empty promises, but
they cannot even make promises because for them, South Africa
consists of the Western Cape only and even when they talk about the
Western Cape, they are not talking about the rural people in the
Western Cape, they are not talking about the black people in the
Western Cape, because black people do not matter, it is only black
votes that matter to them, our people are not blind. [Applause.] In
a research paper, on the unexpected effects of the financial crisis,
we are reminded that, and I quote:
The economic cost of financial crises are large. Much efforts has
been put into quantifying the direct economic costs due to
unemployment, production contraction and wealth destruction
associated with the 2008 Global Crisis. The estimates show that
the Crisis and its aftermath have been distinctive in the US,
where it was responsible for the destruction of around 44% of the
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medium household wealth. It was the worst downturn since the 1930s
and the suggested cumulative loss in world output associated with
the Crisis rise in the range of $5 to $15 trillion.
And this is quoting Adelson in an article of 2013. All political
parties in this democratic Parliament, as well as our counterparts
in the two other spheres of government are in agreement on the
importance of growth. To align its work with the National
Development Plan, the National Growth Path - the Department of
Economic Development also - aligned with the Medium Term Strategic
Framework, with the Estimates of National Expenditure and the Sona‘s
9 Point Plan as was point out before.
Hon Van Lingen, please note, through you Chairperson, that its
presentation to us, on their point number 7, the department
indicated to us that they will implement SIP 5 and localisation in
the infrastructure programme and this will be coordinated and its
positive impact will be strengthened. It does not help to come here
and say ―the DA calls for ...‖ Who do they want to do it? The ANC
government? Are they not part of the government? When it suits them,
then they are part of the government, in other times they ―call‖ for
others to do the work. We, in the ANC are prepared to accept that
challenge because we have a responsibility [Applause.] and we are
ready to govern. During the next three years, at least 8 obstacles
per annum, in the infrastructure rollout as identified in the PICC
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will be unblocked by the Economic Development Department. Investment
initiative will be facilitated, fast tracked and unblocked.
Chairperson, Hon Schafer talks about the Western Cape, let me say:
The largest number of quarters on quarter employment, jobs were
created in Gauteng which is 79 000 jobs, the Western Cape was 63 000
and the North West Province was 48 000. The Western Cape‘s
unemployment rate is 19.4%, Limpopo is 19.8%, KwaZulu-Natal is 20.5%
and the North West Province is 23.9%. This was in the fourth quarter
of 2015. However, this data is helpful and informative in guiding
the Select Committee in where economic development and job creation
challenges are the greatest - we do not complain, we will address
them. The ANC government is already spending R1 billion every
working day, we are reminding ourselves of what the Minister said.
The DA talks about 8.4 million unemployed people in this country,
but the voters out there must know – they are not worried about you
– they are only worried about those unemployed people here in the
Peninsula of the Western Cape, because we are coming from the Eden
District where we heard and saw poverty in people there, and there
is nothing that we have noticed that is done by this DA government.
The regional growth rates of our country are even more interesting
and important in strategic interventions to be undertaken by
departments and supported by this House, as six of the nine
provinces grew at a rate above the national average of 1.45% in
2014. The Northern Cape had the fastest growing economy at 2.8% and
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the North West Province had the worst performing economy as it
shrunk by 3.8% in 2014 - and we know why. Gauteng, which is the
economic hub of the country, grew with 2.1%. The reasons for
providing these scientifically verifiable data is to both
demonstrate the importance of the Economic Development Department
Budget and Strategic Plan as well as to provide the authentic
information - not selectively. We and the general public are often
misled by experts who fail to provide authentic information.
The ANC January 8 Statement of 2016, states that, and I quote:
Infrastructure expansion, economic growth and overall development
require specific skills. We need more engineers, more artisans,
more qualified teachers and health professionals, to name but a
few. We encourage young people to look beyond academic
universities for further education.
This is not something that we are now suddenly saying when we have a
debate, it is a policy position of the ANC. We will not come here
when we have a debate on Economic Development, to talk about the
South African Social Security Agency, Sassa - we will do that when
we are dealing about Social Development. In conclusion, hon Khawula,
we will also deal with Brics because we, in the ANC, have historic
relationships with China, Russia, Brazil and India and we will build
on those relationships at the same time we build a wonderful
relationship with Sweden, Denmark and other parts of Europe. We are
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not a Johnny-come-lately, we have been in the struggle for very
long, South Africa‘s people should know that we continue to be
committed to what we have spelled out in the Freedom Charter and we
will not be diverted from our course. The Economic Development
Department helps to keep us on course. We thank you Minister and
your team for doing that. I almost said I am done. [Applause.]
Mr W F FABER: Hon Chairperson and hon Minister, it is sorry that hon
Nthebe is not here because I actually wanted to speak to his heart.
The black industrialist programme will only enrich some connected,
and you know that, but he is not here to listen to this. The
majority of small business entrepreneurs will not benefit and will
also be included in this. My hon Chairperson Makue, you had a great
political speech, but the statistics of the Western Cape is no lies.
It seems this was your last chance to try and reclaim ANC voters
that you lost after the disastrous court outcomes.
To facilitate and accelerate job creation across the economy, this
is the core mandate of the Department for Economic Development, to
create jobs for all not just for some. Let me ask the hon Minister
and members this question, can you honestly ask the 8,2 million
unemployed South Africans at any stage - let alone an election year
and say - that this department has lived up to their core mandate?
That this department is accelerating job creation, promoting
inclusive growth and providing economic policy coherence across all
government sectors? Can you? If there are any semblances of truth in
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the answers to these questions we would all agree that this
department is failing miserably in what it was envisaged to set out
to do.
Instead this ANC government is continuing to push for a bigger
public service sector trying to mask the failures of its economic
policies. South Africa will not succeed by having a bloated public
service instead of spending the funds to create an enabling
environment for ordinary South African entrepreneurs and innovators
to drive our economy. Since 2005, new ministries departments and all
that goes with it have failed to address the high unemployment and
the economic challenges facing South Africa. In fact, all it did was
just to bloat the Service Bill which grew by more than 145% up to
2012, the percentage will be much higher including the last few
years.
It is time this department gets disbanded and to start the
streamlining by delegating the economic planning and co-ordination
functions to Treasury. The support services to the Presidential
Infrastructure Co-ordinating Commission, PICC, should be delegated
to the Presidency. And the oversight of the Industrial Development
Corporation, International Trade Administration Commission and
competition authorities should be restored to the Department of
Trade and Industry. Hon Minister, it is not a failing on your part
to return to the cabinet and request for the above, it will in
reality show true courage and leadership, and the 8.2 million
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unemployed South Africans will thank you. Failing to do so, they
should express their disappointment with the ANC‘s failed economic
policies at the ballot box. I thank you.
Mr L B GAEHLER: Chairperson, promoting the role of people as the key
subject, resources and targets of sustainable local economic
development must be high in the agenda of this department. We need
to create favourable conditions for every individual and community
to have equal opportunity to develop talent, access to joint
resources and participate in building of, contribute to and benefit
from knowledge.
A sustainable and effective economic growth must come along with
social progress and equality, especially macro indexes to firmly
maintain food security, energy development, to gradually carry out
green growth and low carbon economic development. Through economic
development, we need to develop a democratic, disciplined,
harmonious, equal and civilised society. We need to make education
and training, science and technology the major driving force for
development. We also need to urgently mitigate the negative impact
of economic activities on the environment.
One of the urgent interventions we need to consider, is to shift the
structure of agriculture and rural areas towards industrialisation,
promote local advantages, develop quality agricultural products and
combine production with local and foreign markets. The United
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Democratic Movement believes that sustainable development in rural
areas must include industrialisation, modernisations, migration
control and environmental protection. We need to create local
partnerships between communities and local business to stimulate
local economy and create more entrepreneurs and job creators. Small
and medium sized businesses can only flourish in a stimulating
environment. When these small businesses are not paid on time the
services and products delivered, they are negatively affected and
die.
Bayafa. [They die.]
We must give full support to small business development by amongst
others, pay them on time. Government has adopted a buy local policy,
however, this remains a paper policy. There need to be strong
monitoring of the implementation of this policy as part of the
practical support to small business.
Okokugqibela Mphathiswa, faka eza zinto ezindlebeni. [Lastly
Minister, use your earphones.]
... It is important that government practises what it says, that it
is supporting small businesses, but if you go across departments you
find that bulk of the funds do not go to small businesses. That is
why today you have thousands of small businesses registered every
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year and millions dying because of the policies or not proper
monitoring. I thank you.
Mr S G MTHIMUNYE: Hon Deputy Chairperson, hon Faber, you know we
sometimes become so over zealous of issues that you think are
happening in the Western Cape without being factual. From where I
stand the black industrial policy has only become an official policy
of government in 2015. So, who are the selected or connected few
have benefited out of it. Can you show us evidence on that? There is
no such. You know the manner in which you address the House and you
address yourself to issues suggests that you think the
responsibility of a revolution is to release people of the Western
Cape only from poverty or economic bondage. Ours is not a provincial
democratic revolution. Ours is a national democratic revolution.
[Applause.] That includes the Western Cape by the way. All this did
not come out of God‘s Holy Spirit only. It comes out of the policies
of the ANC and what are these policies of the ANC. Now, please lend
me your ears.
Whilst the ANC has made significant progress in the fight against
unemployment, poverty and inequality since 1994, challenges still
remain as a matter of fact. To deal with these challenges means
dealing with the key constraint in our economy that of its
structural nature and the distortions that are brought about across
sectors of the role of monopolies in the economy. Transformation of
the economy has to deal with this reality. The ANC‘s most effective
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weapon in the campaign against poverty is the creation of decent
work which requires faster economic growth. The accelerated growth
should take place in the context of an effective strategy of
redistribution of wealth that builds a new and more equitable growth
path.
Accelerating growth and transforming the economy both require an
effective, developmental state that is able to lead in defining the
national agenda, mobilising society to take part in the
implementation of that agenda and directing resources towards
realising these objectives. The ANC‗s understanding of a
developmental state is that it is located at the centre of a mixed
economy; where the state, private capital, cooperative and other
forms of social ownership complement each other in an integrated way
to eliminate poverty and foster shared economic growth. It is a
state which leads and guides that economy and which intervenes in
the interest of the people as a whole hon Schaffer.
It is against this that the ANC policy decisions that emanated from
the economic transformation resolutions of the ANC 52nd national
conference held in Polokwane, resulted in the establishment of the
Department of the Economic Development.
The Freedom Charter clearly articulates the ANC‘s economic vision to
ensure that the people shall share in the country‘s wealth. This is
the solid foundation from which the ANC continues to advance the
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struggle for the liberation of blacks in general and Africans in
particular towards a National Democratic Society, to improve the
quality of life of all people.
At its 53rd national conference in Mangaung in December 2012, the
ANC defined the need to move into a second phase of the country's
democratic transition, one in which a radical form of socio-economic
transformation would need to take place in order to address the
structural challenges in the economy and to place the economy on a
qualitatively different path that would ensure more rapid,
sustainable growth, higher investment, increased employment, reduced
inequality and deracialisation of the economy. The conference also
called for a sustained focus on addressing the uneven quality of
service delivery. At this Conference the National Development Plan,
NDP, was adopted as the ANC‘s and country programme to improve the
quality of life of all citizens. Radical economic transformation is
about fundamentally changing the structure of the economy from an
extractive and mineral exporting economy to a value add,
manufacturing and commodity beneficiating economy so as to ensure
sustainable growth, combined with much higher levels of employment
creation and more rapid reduction of inequality. The key objectives
of radical socio-economic transformation are to accelerate economic
growth along an inclusive and sustainable path; achieve much higher
levels of employment creation and decent work; reduce inequality
substantially; ensure meaningful black participation in the
ownership, control and management of the economy which is contained
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in the black industrialist economy hon Faber and to roll back
monopoly practices and uncompetitive behaviour and advance black
industrialists.
The ANC‘s 2007 52nd national conference in Polokwane, called for
decisive action to thoroughly and urgently transform the economic
patterns of the economy by addressing the monopoly domination of the
economy, which remains an obstacle to the goals of economic
transformation, growth and development. The conference further
resolved to transform the structures of production and ownership,
including through amongst others the creation of anti-monopoly and
anti concentration policies aimed at creating competitive markets,
broadening ownership and participation by the people; addressing
monopoly pricing and other forms of rent seeking and anticompetitive behaviour; overcoming barriers to entry that inhibit the
growth of small enterprises, including strategies to increase
competition by promoting the emergence of new players in both South
Africa and the SADC region.
This led the ANC to implement regulatory mechanisms of the economy
in a bid to curb these negative practices of monopolies by
introducing competition authorities, such as the Competition
Commission the Competition Tribunal and the International Trade and
Administration Commission.
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Whilst recognising the role of competition in a mixed economy it is
necessary for the state to regulate such economic behaviour so that
economic behaviour in general is influenced in the direction of
being developmental in character and not just accumulative.
In conclusion, the ANC‘s approach in dealing with the challenges in
the economy is informed by the philosophical outlook of promoting a
mixed economy. Mixed economies by their very nature bring about
inherent contradictions that are necessary for the growth of an
economy. The ANC which governs the State is informed in its approach
by Strategy and Tactics - the policy guiding document that is
applied to all given material conditions. This approach places the
State as one that is both democratic and developmental and that rest
on four following pillars. A state that sets the national agenda; a
state that drives and influences the character and shape of society
and as a part of the economic transformation agenda; a state that
builds its capacity in the provision of goods and services and a
state that pays attention to building its technical capacity
At the core of the ANC‗s economic mandate is the transformation of
the economy to inclusive growth. At the heart of radical economic
transformation is the need for co-ordinated interventions in a
number of sectors to fundamentally alter the structure of the South
African economy. This requires an effective state that is decisive
in its pursuit of structural change.
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Promoting the greater spread of ownership relates to ownership and
development of the economy and this will require greater progressive
regulations for which the ANC stands committed to see it happening.
Now, hon Khawula my friend, imagine the government anywhere in the
world was to rely on one capable individual as a Minister of
Finance, ...
... uma uNkulunkulu emkhumbula lowo muntu kwakuzokwenzekani
ngempela. [Ihlombe.] [... what was really going to happen if God
still remembered that person?]
Now, the whole poowah around Minister Nene is as if Minister Nene
was an embodiment of all wisdom around finance. We agree he was a
capable Minister, but at some point he had to go. [Interjections.]
An HON MEMBER: ... [Inaudible.] ... employed by the ANC.
Mr S G MTHIMUNYE: This thing of hon Schafer – I mean hon Makue has
made reference to that. We are recently from Eden district. I was at
Plettenberg Bay. I have seen poor people there, very poor people.
Now, we must not address ourselves as if Western Cape is Canaan. No,
there are lot of challenges in the Western Cape like the rest of the
country. I think as the ANC government we are committed together
with you here in the Western Cape to change the lives of people
especially black people. Thank you very much. [Applause.]
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The MINISTER OF ECONOMIC DEVELOPMENT: Deputy Chairperson, I think
most of the contributions that have been made here today by hon
members have been enormously helpful. They focused on jobs and
development, they recognise that we have achieved much in tough and
difficult conditions but that much still needs to be done, that our
people need to see additional increased efforts for transformation.
We have taken note of the various suggestions and ideas and we will
be reflecting on them and bring them into our programmes. I must say
that I was disappointed; I was disappointed in particular but not
surprised by the contribution of the hon Schafer and Faber. It
sounded to me as if we were in an election meeting with an election
speech. If that is the case then perhaps some cold facts
dispassionately delivered can assist us.
So let us start, let us starts with the statistics itself. The hon
Makue has already given some information and I would like to add to
it. The Western Cape has done well in the last 12 months on
employment but when I came to the House a year ago and indicated
that the previous 12 months the Western Cape did not do well, they
disputed the source of my information and today they use exactly the
same source of that information.
Let us take the last five years because we are going into local
government elections, so five years is a good starting point. Let us
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rate employment creation over the last five years from quarter four
2010 to quarter four 2015 which is the latest five year period. Who
has created the largest number of jobs? Gauteng led the field with
671 000 new job creations. Let‘s see which province had the greatest
percentage growth in its jobs. Limpopo led the field with 32,8% of
jobs. Let‘s see which province had the biggest decrease in the
number of unemployed. Gauteng with 323 000, in fact on that index,
Western Cape comes number eight out of nine. Only Northern Cape had
the smaller reduction in absolute unemployment over that five year
period and Northern Cape of course is a tiny province in terms of
population.
Let us take the kind of work that national government does in the
Western Cape because contrary to the belief of some, Western Cape is
part of South Africa. I grew up in the Western Cape, I am Western
Cape person and what our government does nationally benefits all
nine provinces. For example, the Industrial Development Corporation,
IDC, in the last 12 months, has put R1,3 billion into the Western
Cape by way of approvals. National government‘ support to bring
Hisense to Atlantis to support Sheraton in Diep River or House of
Monatic in Salt River is another example. Government‘ support
nationally for Buy smart in Blackheath or to bankroll financially
the Industrial Development Zone, IDZ, in Saldanha or to support the
gas industry through Operation Phakisa which is a national programme
and which Minister Joemat-Pettersson can talk about - or to pump
R2,5 billion into the Sere wind farm in Matzikama that is now 46
turbines generating energy for the national grid.
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I can give you a list of hundreds of projects like these where
national government invest, creates jobs and support development in
the Western Cape as we do in other provinces because the people of
the Western Cape deserve the support of their national government. I
can take you to the misunderstanding by hon Schafer of the 100 black
industrialists which is a programme announced by the Department of
Trade and Industry but it‘s by no means the only programme of
national government.
We have a wide programme to bring black South Africans into the
productive economy. Two weeks ago I invited many black South African
industrialists to come here to Parliament and to showcase their
products. You would have eaten noodles made by a black South
African, very tasty and they are now on the supermarket shelves. He
has no political connections, he gets support from national
government because his projects are great projects and we believe in
black South Africans as much as we believe in white South Africans.
It is not fish for the one and fowl for the other; this is a country
where we say black South Africans must get opportunity.
Hon Schafer also perhaps misunderstood the outcome four and outcome
six statistics. I would encourage her to acquaint herself better
with it. These were statistics that were put forward of what has
been achieved by all the economic departments together not the
economic development. In the economic development report you will
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see that we have achieved 100% of our key performance indicators and
that report is available.
You will know about Startups in the Western Cape and that it was the
DA that closed Red Door which was a programme to support small
business. I can go on but I don‘t think it really is where we should
take the debate. I think we must lift the debate beyond a beauty
contest – is Western Cape most beautiful than others? Let‘s go to
the issues that South Africa needs and what is it that I want to say
there in conclusion.
I want to say that the key focus areas of government, of an ANC-led
government but a government that was voted on by all south Africans,
is that infrastructure is critical. I was asked a question by hon
van Lingen about road to rail. 30 km of the rail line in Majuba has
now been completed; we still need to do the remainder of that rail
line. On industrial funding, we must support it with R13,6 billion.
If a foreign investor came with a billion rand we would roll out the
red carpet. Here is our own institution the, IDC, not with
R1 billion, not R4 billion not even R8 billion but R13,6 billion of
investment in this economy. We are challenging cartels we are not
giving them a slap on the wrist, we are saying that if you collude
against the public interest, your directors can go to jail.
We are expanding our job reach trade policy, we are unblocking
investment and I gave a number of examples, we are partnering with
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provinces to ensure that national government, provinces and local
government work together and finally, we are supporting youth
employment and youth entrepreneurship.
I heard the cautions by hon Nthebe, they were well taken and we will
certainly pay attention to the issues. I did not want to reveal a
bit of information previously, we are still using the R142 million
of youth approvals by the IDC and that is for the year 2014-15. We
are waiting for the audited outcomes of the latest financial year
but the provisional figures, hon Nthebe, you would be happy to hear
that IDC has now supported R969 million worth of youth backed
projects, subject of course to the audit. But that gives you an
indication of the scale, the support and the focus that this
government is bringing on jobs, development and empowerment. I thank
you.
Debate concludes.
POLICY DEBATE ON BUDGET VOTE 26: ENERGY
The HOUSE CHAIRPERSON (Mr A J Nyambi): I invite the hon Minister
Tina Joemat- Petterson to introduce the debate.
The Minister of Energy: Hon Chairperson, hon Ministers and Deputy
Ministers, members of National Council of Provinces, ladies and
gentlemen.
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In the normal course of events the Department's budget speech
would take place first in the National Assembly and then in the
National Council of Provinces. Due to programme logistics this
year is different and I present the Department's budget to the
NCOP first.
I am very happy to do so. The reason is that we have a
seemingly large budget of R7.5 billion. But of this R6.8 billion
goes on transfers and subsidies, the bulk of it to municipalities
in your provinces. So presenting our Budget in this house first
gives me the opportunity to reflect on the work and expenditure
in the provinces and also to strengthen our relationship with both
the provinces and the municipalities.
South Africa celebrates twenty years since the adoption of our
current Constitution in May 1996. The Constitution is grounded in
the Freedom Charter, which continues to be the foundation of
democratic South Africa. It not only protects our rights but
entitles us to the provision of electricity, water, sanitation and
housing.
The goal of the ANC since it was formed in 1912 has been to
give all people in our country the chance to choose their own
government. This is why generations of our leaders and members
have set their sights on the objective of a new and democratic
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constitution which removed the colonial status of the African
people.
The National Development Plan (NDP) envisages that by 2030 South
Africa will have an energy sector that promotes economic growth
and development through adequate investment in energy
infrastructure.
The NDP identifies the need for South Africa to invest in robust
economic infrastructure designed to support the country's medium
and long term economic and social objectives. Chairperson, energy
infrastructure is a critical component that underpins economic
activity and growth across the country. The NDP requires the
development of 10 000 megawatts of additional electricity
capacity to be established by 2025 against the 2020 baseline
of 44 000 megawatts. During sluggish economic periods it is
very easy to become complacent about our energy needs because
demand is lower and the strain on the system is lessened. We need
to be ready for times of increased economic activity through
ensuring an abundance supply of electricity. For this reason we
will continue to develop our generating capacity across a broadened
energy mix. There have been valid criticism in the past that we
fell behind the demand for sufficient electricity and inevitably we
lost some potential for investment. We must not allow this to
happen again. It is possible that we may not have any energy supply
problems in five to seven years‘ time when Medupi and Kusile power
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station are fully on stream. We need to look much further into the
future, to 2030, 2040 and to 2050 and beyond. So even though we may
not have load shedding during this winter, ours should not be a
short-term vision but a long-term vision for the next generations
to come.
The Integrated Electrification Programme, INEP as one of our ongoing
needs, remains the electrification of domestic housing.
Integrated
Electrification Programme, INEP; and its 'implementing
agencies Eskom, municipalities and non-grid service providers nave
made remarkable progress in increasing access to electricity in
South Africa. Over 6.7 million households have been between 1994
and March 2016 and deserve a round of applause. Access to electricity
now stands at 88% of all households. This is remarkable' But the
more successful we have been, so too have the demands increased,
sometime with great impatience, from those yet to be connected.
Five point six billion rand was appropriated during the last
financial year for the electrification programme, to deliver 260
000 connections utilising both grid and non-grid technologies. By
the end of March 2016 INEP achieved 256 088 new connections as
part of the 2015/16 financial year allocations which were
implemented by municipalities, Eskom and non-grid service
providers.
The final figure will only be determined as soon as
all the verification of the new connections have been completed,
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which will be by the end of May 2016. However the department is
confident that the target of 260 000 new connections will have been
achieved.
The non-grid programme has progressed well in the last financial
year and has over overachieved its target by over 5 000 by
completing over 25 000 modern solar energy connections. Since the
inception of the Non-Grid Programme, INEP has completed more than
123 000 installations of non-grid systems mainly in the Eastern
Cape, KwaZulu-Natal, the Northern Cape and Limpopo. In case you are
wondering, non-grid systems are those consisting of solar cells
(photovoltaic cells) converting sun energy into electrical energy.
These are now also being considered for installation in urban
areas of the country with a view of increasing basic electricity
services in informal settlements and elsewhere.
The INEP programme has been allocated R5.5 Billion in the
2016/17 financial year spread across all our provinces and
municipalities. Transfers directly to municipalities will amount to
R1.9 billion and transfers via ESKOM to municipalities will amount
to R3.5billion.
In brief the provinces will get:
KwaZulu-Natal
R1.5 Billion
Eastern Cape
R1.3 Billion
Limpopo
R1 Billion
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Mpumalanga
R520 Million
North West
R350 Million
Gauteng
R215 Million
Western Cape
R208 Million
Northern Cape
R165 Million
Free State
R135 Million
We will deliver 235 000 new connections for both grid and nongrid systems. At the current pace we will have electrified the
bulk of the remaining households yet to be connected to
electricity in under 10 years from now.
Some of this has been possible through innovative approaches to the
prov1s1on of electricity such as through generation via renewable
energy and off-grid solutions such as solar water heaters.
[Independent Power Producer (IPP) procurement
programme]
Our Renewable Energy Independent Power Producer Procurement
Programme (REIPPPP), established in 2010, has become one of the
world's most progressive and successful alternative energy
programmes. Ever since the introduction of this structured and
secured as local community equity. An individual community's
dividends earned will depend on the terms of each transaction
corresponding with the relevant equity share.
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To date all shareholding for local communities has been
structured through the establishment of community trusts. For
projects in bid windows 1 to 4 qualifying communities will receive
R29.2 Billion net income over the life of the projects which is at
least 20 years.
The R30.7 billion spent on BBBEE during construction so far has
already exceeded the R26.6 Billion that had originally been
anticipated by IPPs.
Even though bid window 3 projects have only just started
construction, employment opportunities are 111 % of the planned
numbers during the construction phase (i.e.19 523 job years), with
23 projects still in construction and employing people. The number
of employment opportunities should therefore continue to grow
beyond original expectations.
These IPPs had planned to deliver 8 451 job years during the
construction phase, but actually achieved 14 334 new jobs. This
is 70 % more than planned. These are primarily jobs in provinces
away from the large urban areas.
The current renewable energy operational portfolio is contributing
an increasing percentage of the buffer between the available
supply and projected demand for electricity. Already a 16%
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contribution is made to the total energy produced during the
morning and evening system peak periods in a 24 hour period. As
the energy mix diversifies with the inclusion of concentrated
solar power (which includes a storage element), biomass and
landfill gas, the share of energy available during peak periods
will increase.
The department has procured private peaker stations to the capacity
of nearly 1 000 MW that can be used when there is a larger demand
than what the Eskom generators can produce. The plant in Eastern
Cape was completed in September 2015 and can produce 330 MW. The
plant in Kwa-Zulu Natal, when completed by the end of this year,
will produce 630 MW. Total projects costs were R8 Billion, while
210 permanent jobs and 6190 temporary jobs were created at both
plants.
Our Renewable Energy Independent Power Producer Programme is
contributing to 'greening South Africa's Industrialisation. The
programme has been designed to contribute to the development of a
local green industry and the creation of green jobs. We are aware
of at least twelve new industrial facilities that have been
established in the country in direct response to the renewable
energy programme -
evidence of the programme's contribution
towards growing the green economy and green jobs.
As part of the implementation of the WSP, a number of training
and development interventions have been identified for
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implementation. The DoE has also offered thirty two (32) new
bursaries to serving employees of the Department.
We will also contribute with the implementation of youth
development intervention programmes such as the provision of
bursaries to external applicants.
Eleven external applicants within
the youth programme were offered bursaries sponsored by the
Chemical Industries Education and Training Authority (CHIETA)
including four integrated learners, 32 interns and 15 people on
learnership programmes.
Besides the significant international and domestic investment in
South Africa new innovations, especially in the renewable energy
space, have been introduced into South Africa.
We are a country with a flair for innovation, for making a plan, and
so we must build on these newly introduced technologies by ensuring
that South Africans can maintain, and develop them further. This
also requires training. I encourage the higher education sector to
take up the opportunities to offer courses and qualifications in
these new fields of energy being introduced in South Africa.
Imagine, for instance, a Department of Renewable and Alternative
Energy offering courses at the new Sol Plaatje University in
Kimberley [2016/2017 Budget]
Turing to the nuts and bolts of this year's budget. The total
appropriation to the Department for 2016/17 is R7.5 Billion. 90.2%
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is earmarked for transfer to municipalities and state owned entities
while the remaining 9.8% is to be utilised for the Department's
operational and capital expenditure.
The spending focus over the medium term will remain on transfer
payments to Eskom and Municipalities for expanding the
electrification programme to increase the number of households with
connections to the grid and providing substation infrastructure. We
also focus on the implementation of the National Solar Water Heater
programme with the objective of promoting energy efficiency. Spending
of R1.2 Billion over the medium term on 131 146 solar water heaters
is projected. Transfers to municipalities are expected to increase
from R1.9 Billion in 2016/17 to R2.2 Billion in 2018/19, and
transfers to Eskom from R3.5 Billion in 2016/17 to R4 Billion in
2018/19.
Non-grid electrification projects, mainly solar energy, will be
extended countrywide. The projects will be implemented in any areas
where extending the grid would not be cost-effective. Seventy
thousand non-grid connections to households are expected to be
achieved over the medium term, with spending on non-grid
efficiency. As indicated already we have significantly increased
our visibility in the provinces through campaigns and workshops but
we want a permanent presence.
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We will do this by adequately staffing our provincial offices at a
level appropriate to what is required. In addition we will engage
in discussions with the various spheres of government operating in
the provinces commencing with my colleague responsible for
Cooperative Governance and Traditional Affairs. In the absence of a
formal Ministers meeting with responsible MECs (MinMEC) in the
provinces I will engage directly with the premiers and those MECs
who have responsibility for energy and specifically
electrification.
Honourable Members, I encourage you to assist with oversight in
your provinces to ensure the effective and efficient provision of
energy services.
My department is working with the Municipal Infrastructure Support
Agent MISA) located in the Department of Cooperative Governance and
Traditional Affairs to improve the delivery of projects and
programmes. It includes dealing with electricity infrastructure
challenges, liaison between Eskom and municipalities, and oversight
of projects in municipalities.
At the same time we need to ensure that energy needs are met
seamlessly, in an integrated manner, across government. It is
therefore important to consult regularly with municipal managers to
coordinate their implementation programmes with that of the
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provinces as well as with national departments responsible for the
delivery of services in the provinces.
In conclusion I would like to thank Deputy Minister, the DirectorGeneral, Ministry Officials, Department Officials and all our state
owned entities for ensuring that their eyes are focused on our
mandate all the time.
I thank you.
Mr B G NTHEBE: Our brand new Chairperson, hon Minister, members in
the House, special delegates, distinguished guests, indeed,
siyaqhuba [we are moving forward.] Hon Minister, as the select
committee we had an opportunity a year and a half ago to visit
Northern Cape, in particular Upington. During our visit there we
saw, lying on the ground, 1 500 solar panels that were presumably
going to be connected to the grid pretty soon.
We want to confirm that we were quite happy to visit to Upington.
What we saw there - if could be impressed on the department – the
creation of such activities in the local community could have what
we call replicable effects whereby people in the local vicinity can
be able to acquire skills that will help to sustain the project
moving forward.
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The International Monetary Fund, IMF, notes with concern that the
global economy continues to struggle with regard to growth,
particularly the growth of emerging economies. You would be aware,
hon Minister, that there is a dominant view globally that South
Africa must be given the status of a developing economy. Such a view
is maintained despite our contestation that we are not yet a
developed economy but we are still struggling and need the necessary
support in order to achieve the status of a developing economy.
The IMF further estimated that the global economy would have a
growth of about 3,1% in 2015; 3, 4% and 3,6% in 2016-2017
respectively. However, the forecast for South Africa by IMF stands
at a significantly low level of 1,3% in 2015 and 0,8% in 2016. This
is far below the National Treasury‘s estimates of 2% in 2015 with a
gradual improvement to 3% in 2017.
Economic growth remains stagnant overtime; it is against this
backdrop that we are receiving this tabling of the Budget Vote from
you, hon Minister. South Africa expects nothing but energy security
from your department. That is what we expect as South Africans, and
that is what we need the department to give us an assurance about.
We are thankful to hear you giving us an assurance that from where
we are sitting, load shedding is now a thing of the past, and that
we are now moving into making sure that our generation of power
becomes more increased, and that we are going to have the necessary
backup if a need arises.
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Energy security remains at the core of our current and future
industrial and technological advancement. When we have energy
security we will attract investment, we will create internal
stability and improve our competitiveness locally and globally.
This energy security, Minister, is paramount for our socioeconomic
development and for this country to begin to triumph. We want to
encourage you, hon Minister, to continue to foster transformed and
sustainable energy sector with universal access to modern energy
carriers for all by 2025.
This we think is part of your critical responsibility to make sure
that there is universal access in terms of the modern energy
carriers, and as the select committee we want to impress on that
point. Let‘s remain focused, hon Minister, to our plan of improving
energy mix by achieving 30% clean energy by 2025. From where we are
sitting as the select committee we are quite confident that this
target can be reached way before the targeted time.
We are interested in seeing an increase in terms of access to
household electricity and we will elaborate further on this matter
later. We want to increase energy efficiency and the diversification
of energy generation mix; and we want to ensure the improvement in
quality and security of petroleum fuels. We recognise the intention
of the department with programme 4 - energy policy and planning. The
3 May 2016
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budget for this programme has increased by 6% but your inflationary
pressures, hon Minister, has let to a tangible decrease of -0,55%.
There is a significant increase in policy analysis and research
subprogramme and we are confident that Bills and Acts that are due
for Cabinet submission will be well taken care of. And we know that
you have a number of them ready for submission. But we are confident
that the department will be able to reach the target.
Hon Minister, five entities reporting to your department has been
covered adequately by this budget. Our request is that you should
continue to give them proper monitoring. Have your hand on the pulse
of your entities so that we can begin to see how they can give
necessary support to the department as a whole.
We note with concern, hon Minister, the decrease by 60% on renewable
energy subprogramme. Our view is that this is a huge decrease, but
we believe that your department has been able to shift the
priorities so that they can be in line with the allocation we are
getting. However, our concern is that this is one of those things
that are much important to us.
The National Development Plan‘s intention of having locally
developed technology will support job creation and we must never
lose sight of that. Hon Minister, if you compare the number of RDP
houses built in this country today and the number of people who can
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afford, it is explicit that we are now beginning to make the
necessary mark. And these people must not be deprived of access to
energy security.
The household electrification process has increased from 69,7% in
2011 to 80% in 2014, and we want to applaud your department in that
regard. Our view is that we must continue to this in order to
increase on the 5,8 million number of households that are benefiting
from this electrification process. Two million indigent households
have also benefited from this programme.
But what does freedom mean to an ordinary man and woman on the
street, hon Minister, in terms of what your department can give?
Energy security, sustainability and equal opportunities are
important. Equal opportunity means that small businesses must not be
disadvantaged by energy security related issues, and it also means
that we must continue to create a climate which is conducive for
fair competitiveness in terms of what small businesses can be able
to do without necessarily giving more access to bigger and well
established companies.
We want to move away from being net importers of goods to being net
exporters and your department is critical in ensuring that we have
enough energy security.
With regard to the R350 million that you are allocating to North
West; I am from the North West, hon Minister, and I want to reassure
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you that if you want to get the economy of the North West right then
you must make sure that the province gets a provision of
uninterrupted water supply, proper road infrastructure and energy
security. This is how you can get the economy of that province in
your hands.
We are quite happy about the allocation that you have given to the
provinces. It is therefore upon provinces to see how they tap into
the support that you are giving. Our view is that you should
continue giving support so that those who are claiming easy victory
may know that, to us, this is not just a dinner party but it is part
of a process to move forward.
As the select committee we want to endorse your Budget Vote. Thank
you.
Ms E C VAN LINGEN: Hon Chairperson, hon Minister, hon Members,
during the hon. Minister Patel‘s Budget Vote address in the National
Assembly, he referred to the collusion of large companies during the
construction of the World Cup stadiums in South Africa as well as
the progress made by the Competition Commission. The Minister
further quoted a World Bank study on competition and cartels in
South Africa which held as follows; and I quote,
In the case of four cartels in maize, wheat, poultry and
pharmaceuticals products which make up 15,6% of the consumption
basket of the population‘s poorest, 10% conservative estimates
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indicate that around 200 000 South Africans stood to be lifted out
of poverty by enforcement action against cartels.
The DA has raised a similar issue with the competition commissioner,
which affects the poorest and most vulnerable people in South Africa
more specifically, the 16,8 million beneficiaries of to South
African Social Security Agency, SASSA, a responsibility of the
Department of Social Development. The collusion here is that Net1
has unfair access to all the state‘s beneficiaries through its
subsidiary Cash Payment Systems, CPS. Already the Department of
Social Development has according to Regulation 26 (a), only allowed
a single funeral insurance deduction of not more than 10% of a
grant. This was done through 1Life, a Net1 subsidiary.
CPS has allowed green easy-pay cards to be issued for direct loans
from money line; another Net1 subsidiary. This is in total
contravention with the National Credit Act because telephonic
applications may be done for up to R1 000 of the R1 550 grant every
month without assessing the loan credibility of the client.
Electricity and airtime is also sold in this fashion and owners
don‘t know where these deductions come from. These deductions are
unlawful and there is a substantial indication that there is abuse
of the state database and consequently the DA calls for an
investigation to stop unfair and irregular collusion of the highest
order.
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The DA has laid charges with the Competition Commissioner as in case
number 2016 February 0050. We must call the World Bank to come to
the respective select committees and to request a further survey of
the magnitude of this disaster.
Let me come to the Presidential Infrastructure Co-coordinating
Commission which was established in July 2011 where 18 strategic
integrated projects, SIP, projects were identified and the National
Infrastructure Plan, NIP, was adopted in February 2012.
The DA has persistently requested details of SIP projects in our
provinces for proper oversight and assistance through this
department. The Hon. Minister keeps informing us that this
department unblocks specific projects, funding and other blockages.
Quarterly reports go to the co-ordinating commission, yet we do not
know what is happening and we cannot do oversight.
In our previous meeting we again requested a list of the current SIP
projects per province and we only received a shortlist for the
Northern Cape. Upon further investigation the Minister‘s and Deputy
Minister‘s speeches were sent to us as a list for our provinces.
The list of some of the SIPs, according to a written Question we
submitted in August 2014 is still a concern to us. If we look at
SIP 1, the road to rail shift through Mpumalanga and Richards Bay on
how that line or the capacity of that line was increased.
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Looking at SIP 2, which is the Durban Free State-Gauteng logistics
and industrial corridor; we want to know what progress is being made
there on the road to rail shift.
When looking at SIP 6, the Integrated Municipal Infrastructure
Project; I can remember the state of the nation address debate in
2012 when we were so hopeful about the improvement in critical
service delivery; 23 district municipalities were going to benefit
through this; 17 million people will be affected by yet another
empty promise by President Zuma. We have had no formal record of
what has been done
When it comes to SIP 8 the Green Energy in Support of the South
African Economy; according to Introduction to Perception and
Robotics, IPR2010, this project was supposed to open up green energy
alternatives for domestic and industrial use. Hon. Minister, I have
to ask you why did you not unblocked a deadlock in this field to
ensure low voltage connections for small-scale embedded generation
at low voltage level at capacities below one Megawatt.
When we look at SIP 18 for Water and sanitation infrastructure, well
as you know when all this whole projected in 55% of these waste
water treatment plants were not functioning properly and today it is
much worse as we can see in the Green Drop Reports that are evident
before us at the moment.
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The hon Minister or not even the Minister of Water and Sanitation
has done anything to improve these systems and there is certainly a
culture of no management, no maintenance and no accountability. I
must say where the DA governs we govern honestly, transparently,
fairly and we are accountable. The ANC cannot say the same. I thank
you.
Mr E MAKUE: Hon Chairperson and members, the hon Minister Joemat
Pettersson.
There is general agreement that the reliable and uninterrupted
supply of energy particularly electricity is of vital importance
in our country‘s economic development and sustainable growth.
Therefore it‘s important to look at what thie religious leaders
do, from the Mosques, Synagogues, and the churches, that before
they speak very often to us to look at the Holy Scripture.
Now, let me be religiously ANC and look at the election manifesto
which says, on page 21, that we promise to produce more energy,
clean energy and promote energy self sufficiency and then break it
down it seven different categories
Allow me therefore to highlight some of the questions and comments
made by members of this Select Committee during Department‘s of
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energy briefing. So we look at what the manifesto of the ANC is
saying and what members of the Select committee are saying.
The Hon Khawula sought clarity on the difference between loadshedding and load shifting? The answer was, Load shedding
occurs when there is a general shortage of electricity i.e.
when the electricity demand exceeds capacity to supply, while
load shifting, is a deliberate action by the energy supplier
to switch off certain appliances like household geysers in order
to save electricity. This is normally done during times after
users have utilised the energy supply services, for example six
o‘clock in the morning when some of us we take bath and we
wash our faces and we don‘t have to come and do it on the
podium. Such actions help to ensure that this vital resource is
used responsibly and saved for periods when demands are higher.
Response is super from the government.
Hon Khawula also questioned whether the Department of Energy
would adhere to the timeframes set in the Strategic Plan? Which
is a very important question? It makes no sense to have strategic
plans and then not respect and conform to them. The Department of
Energy gave the assurance that its time frames are carefully
calculated and will be adhered to, thus resulting in improved
energy security. Unfortunately the speaker before me was not in the
Select Committee and therefore would not have heard this.
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The Hon Faber requested more information on the gas supplies
from Mozambique. The Department of Energy indicated that the
potential of gas supplies from Mozambique is great and hold
many advantages, other than it being clean energy. The
potential is so great that the Minister informed us that a bigger
pipeline, carrying more gas, has already been introduced. An
important question, we are taking our responsibility
seriously.
The Hon Nthebe emphasised the linkages between cooperation
with other African countries and the importance of the African
Union‘s,
AU‘s, Agenda 2063, in particular the silencing of the
guns, economic cooperation and the Great Inga HydroElectricity Project in the Democratic Republic of Congo,
DRC. The
Department of Energy concurred and further responded that the
Great Inga Project is so big and beneficial to the continent,
to t h e people of the DRC and to South Africa that a special
session should be convened by the Select Committee to receive that
good news of this great Project.
From another question posed by Hon Nthebe, the importance of
the National Solar Heaters Programme in community upliftment
was emphasised. The Department of Energy responded that the
manufacture and maintenance of the solar water geysers that
we observe on the roofs of millions of houses all around South
Africa will be done locally and from material procured locally.
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This will further stimulate our struggling economy and provide
sustainable jobs for the many South African citizens trained to
do the manufacturing, installation and maintenance of these
solar water geysers.
The Hon Dikgale, true to form, wanted to know whether and to
what extent rural communities will benefit from the Department
of Energy programmes? The Department indicated that close to 75%
of its programme will benefit rural communities and households.
This is aptly supported by budget allocations, especially to
provinces and municipalities.
Earmarked transfer payments and subsidies to public entities,
municipalities and other implementing institutions amounts to
R6,8 billion which is equivalent to 90,15% of the Department's
total budget of 7,54%. The when we ask the question as
representatives from provinces; how is this going to
impact on the provinces that we have the privilege of
presenting in this House, is answer to us, 6,8 billion
and 90,15% allocated to us.
The remaining budget w h i c h
is
but,
only
R743 million or
9,85% is for operational expenditure, inclusive of payments for
capital assets. If we therefore have members standing here
and say we don‘t support it. What are they saying? They
don‘t support allocation to provinces. That‘s what they talk
about. They say we do not support a budget where money is
3 May 2016
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made available to uplift the people of this country. And I
hope that the voters hear this.
As the NCOP considers this Department's budget, it is
important to remind ourselves of what the aim of the
Department is, and the aim I quote is:
To formulate energy policies, regulatory frameworks and
legislation and oversee their implementation to ensure energy
security, promotion of environmentally friendly energy carriers
and access to affordable and reliable energy for all South
Africans.
The Department has a national office, therefore, but very
importantly as has been said by Minister Joemat Pettersson,
that there are nine regional offices that are spread across the nine
provinces.
It is important to mention that, there is at least 14 pieces of
legislation and other mandates that governs the Energy Sector.
This provides security to me and to members of the Select Committee
and I could say to the ANC generally that all energy sources are
efficiently and effectively regulated and funded as well as for
energy security.
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In its APP, the Department mentions the legislation and
mandates that may require review and amendments. As indicated
with the questions above raised by members of the Select
Committee, there are answers to concerns we may have and
capacity within the Department of energy to address the
challenges mentioned. We therefore have no reason not to vote
in favour of the budget before us.
The Department of Energy has the confidence in their own
capacity to also raise with us the challenges that they
anticipate and I will mention them as follows: inadequate
generation capacity, distribution infrastructure, and cause of
energy, access to electricity, energy efficiency, economic
transformation and budget baseline reductions. The Department
shared with us its seven strategic outcome oriented goals. And
is a person that can read and understand what they have
presented to us and I am left with no choice, not to praise
the Department but to say to them you are on the right path.
And as a Select Committee we will make sure that you stay on
that path, but you also have our support for your budget and
for the plans that you have. I thank you Chairperson.
Mr M KHAWULA: Hon House Chairperson, hon Minister, as reported in
your annual performance plan, APP, the core business of this
department is, amongst others, to ensure that diverse energy
resources are available in sustainable quantities and affordable
prices to the South African economy in support of economic growth
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and poverty alleviation. In pursuit of this mandate, the department
has thus far failed dismally.
The power cuts, load shedding, load shifting - whatever you call it,
that is a practise with Eskom, has so far cost South Africa billions
of rands. Industries that heavily rely on electricity for production
always contemplate relocation or staff reduction whenever there is
contemplation of shortage in supply of electricity. It is therefore
imperative that energy supply give the adequate and necessary
support to job creation initiatives in the country through proper
supply of electricity.
Rural communities, informal settlement communities and industrial
workers are the biggest causalities of poor electricity supply in
South Africa. Whereas South Africa got freedom 22 years ago in 1994,
for most of these communities mentioned above, who struggled for
this freedom, the promise of electricity supply remains a dream that
continues to evade them. With the local government elections looming
on 3 August 2016, the biggest promise to communities will be
electricity - just like you have done. Our communities will be lured
once more to live in false hope which might elude them again until
another election with another promise.
This must now become a reality. But how does this get fulfilled when
the department is getting involved in another pie in the sky of a
nuclear energy deal for which there is no money. How many more Nenes
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will be chopped before it gets into and rings in the heads of the
powers that be that there is no money for nuclear energy in South
Africa. How many more Van Rooyens will break records of shortest
serving ministers in the world before it rings in the powers that be
that there is no money for nuclear energy in South Africa. How many
more Gordhans will be clandestinely investigated by intelligence
agencies before it can ring a bell in the heads of the powers that
be that there is no money for nuclear energy in South Africa.
Service delivery in South Africa must not be driven by greed and
egocentrism. The decisions taken must be driven by logic and reason.
As a matter of fact, the IFP acknowledges that at least now we can
see that Eskom is beginning to turn the corner. We therefore thank
Mr Brian Molefe and Dr Ben Ngubane. We also have to applaud the
teachings of Prince Mangosuthu Buthelezi which have come to save
South Africa through Dr Ngubane‘s involvement in the mess.
We say to South Africa, with whatever mess that gets created, the
IFP will always be there for you to mop up and provide logic,
leadership and credible judgment. Strained relations between
municipalities and Eskom need to be given attention as this affects
consumers negatively when it happens. The same goes for the need to
monitor increases in energy prices. South Africa has indigent
policies which also embody the free supply of energy to the poor.
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It is interesting that whilst energy prices have been going up, the
portion of free kilowatts to the indigent families has not been
going up since inception. The IFP appeals on behalf of the poor for
the kilowatts supply to the indigent to be increased. I thank you.
Ms M C DIKGALE: Hon Chairperson, hon Minister, hon members and
special delegates, ladies and gentlemen, it is indeed an honour and
privilege for me to be afforded this opportunity to take part in
this debate dealing with energy matters.
This debate takes place on 3 May, which is World Press Freedom Day.
This year the World Press Freedom Day coincides with two important
milestones: The 250th anniversary of the world‘s first freedom of
information law, covering both modern day Sweden and Finland and the
25th anniversary of the adoption of the Windhoek Declaration of
press freedom principles.
One would thus ask the question: ―What do all these have to do with
energy?‖ Well, the answer lies in the fact that both have a common
thread or link communication. And members will agree with me that
electricity, as a form of energy, is a necessity for communication.
Those who are clued up with historical events will know that the
first thing people used electricity for, was to communicate. The
old-fashioned telegraph systems needed electricity to work.
3 May 2016
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After that, people started lighting up public buildings with
electric lights. Then people realised that they could mine better
and more efficiently if they used electric lights underground and
electric pumps to pump water out of the mine.
Eventually
electricity supply was extended to households for internal use. And
today almost all tools that we use to communicate, be it cellular
phones, radio, TV, laptops, computers, and so on, need some form of
energy, mainly electricity, to remain switched on.
Today energy is not only one of the biggest industries in the world,
but it is fundamental to making the world go around. It involves
everything from new technologies to the strategies of nations to
political turmoil. It is a key factor in shaping our world. Today
there are new dimensions of energy, be it in security - with issues
like cyber attacks and nuclear proliferation; in economics with
trying to understand how energy markets work with regards to
technology and innovation, and trade in general or in environment
with regards to emission of greenhouse gases.
So, like every other nation, South Africa needs energy to keep the
economy going. This is so much so if we are to avoid the energy
shortages and load shedding that we experienced last year. The load
shedding taught us that we need to increase our energy stockpiles,
and this budget will help us to do exactly that, hon Khawula.
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The month of May also means the start of winter in South Africa.
This inherently means higher usage of electricity, especially in the
homes as people would want to keep themselves warm. The winter
season is that one that warrants us to have more energy reserves.
Unfortunately, for those who live in rural areas and informal
settlements without electricity, this means the beginning of more
tough life associated with winter season. This tough life will be
mainly felt by poor women in rural areas because it means they‘ll
now have to increase the trips to the forests to gather more wood
for heating and cooking.
It also means our poor people in informal settlements will have to
resort to dangerous measures of using mepaola [braziers] and
paraffin as sources of energy. All these come with open flames and
open flames are always dangerous, especially in informal settlements
where housing is normally built from materials that burn easily, and
the shacks and houses are often built very close together.
This is a sad and sorry life of black people who were forced to live
in rural settlement far away from towns and power stations. They are
then forced to move closer to a town, city or industry in order to
find work and the only cheaper place for them to stay is at the
informal settlements. Most of these informal settlements are usually
built very quickly and without planning, so there is no time to plan
or build electricity transmission lines before people move there.
3 May 2016
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So, even if government tries to intervene this becomes very
difficult.
Then come ...
... bomabinabosolwa ... [... those who claim easy victory ...]
... who mislead these people into believing that government has
forsaken them. They choose to forget that as late as 1994, only 1%
of rural households had access to electricity and that currently
more than 85% of these households now have access to electricity.
Thanks to the ANC-led government.
A ke boomo goba ke bolwetsi? Mohl Modulasetulo, bona bomabinabosolwa
ba, ke ba mathomo bao ba tlilego gore ba ganetša kabelo ya
tekanyetšo ya lefapha la gago, eupša ge o ka re ba ye go dula mo
metseng yeo ya magaeng goba mekhukhung yona yeo, mo go se nago
mohlagase, ba ka lla sello sa masetlapelo. Ba ka ba ba re: ―Lefase
phatloga re tsene.‖ (Translation of Sepedi paragraph follows.)
[Are people doing this intentionally or this a sickness? Hon
Chairperson, these people who claim easy victory are going to be the
first to object to the Budget Vote. If you can tell them to go live
in the rural areas and in the shacks where they will have no access
to electricity, they will cry like babies and even wish that the
earth could open and swallow them up.‖]
3 May 2016
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We, in the ANC will always support this budget because we understand
and know that it is geared towards ensuring that our people‘s energy
needs are met. As a delegate from one of the poorest province in the
country, Limpopo, I can relate how rural electrification has helped
our people.
Before 1994 we used to live under conditions where we knew that the
only electricity light we saw in a home was a sign that was a place
for a white person. Almost all the villages in Limpopo did not have
electricity, but now you can hardly find a village that does not
have electricity.
The department‘s spending over the medium term remains largely on
household electrification. Approximately 75,3% of the department‘s
budget is transferred to implementing municipalities, nongrid
service providers and the state-owned company, Eskom, for this
purpose. Now it defies logic for people to say they stand for
equality and a better live for the people, but yet oppose the budget
that is intended to achieve that.
Ke boseilakgakasenwamoro. [They are hypocrites.]
This budget is designed to bring the rural communities into the 21st
century. It lays out a strategy to strengthen our rural and periurban areas and their communities, and help them to compete in this
3 May 2016
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time of relentless economic and technological change. There is no
doubt that the expanded energy infrastructure will, in addition to
alleviating the lives of the poor, also help South African workers
to upgrade their skills so that they can compete for high-paying
jobs, and help create the conditions for our businesses to keep
generating good new jobs for our workers to fill.
It will also fulfil our most basic responsibility to keep South
Africa safe, because with darkness come evil deeds and with light
comes transparency. This is so because this department has a
strategic security role to play with regard to nuclear energy and
thus nuclear non-proliferation as well as fighting the effects of
climate change.
Hon Minister, through you hon House Chairperson, I am therefore
particularly pleased with the objectives that you have set
yourselves as the department with regard to clean energy, especially
where you want to improve energy demand side by facilitating the
development of an energy management plan annually. This augurs well
with our commitment as a country to the COP 21 Paris Agreement On
Climate Change that was reached in December last year.
As the country we also appended our signature to this agreement on
22 April this year as one of many countries who ensured that the
year 2016 is the first year of the 15-year life cycle of the new
sustainable development goals. I therefore look forward to this
3 May 2016
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Agreement being presented to this Fifth Parliament for ratification.
We need to ratify it sooner rather than later as it goes to the
heart of our energy programmes.
In conclusion, I want to restate that as the ANC we will use our
energy to vote for this budget of the Department of Energy. We will
do so with the understanding and knowledge that that is energy well
used. It will be energy directed at solving the energy challenges
that we have. As the late American scientist, Professor Randy Pausch
put it: ―If you took one tenth of the energy you put into
complaining and applied it to solving the problem, you‘d be
surprised by how well things can work out.‖
So I‘ll call on the likes of the DA and hon Khawula - the IFP, to
stop putting their energy on complaining and apply it to solving the
energy challenges that we have in South Africa. At least that is
what is expected of patriots that they always claim to be. I thank
you.
Ba theeleditše ke nnete, mohl Makue. Ba theeleditše bakgethi; ba
tseba nnete. [It is true that they are listening, hon Makue. The
voters are listening; they know the truth.]
Mnr W F FABER: Agb Voorsitter, Minister en lede van die NRVP, ons
het reeds die afgelope paar weke gesien dat daar ‘n sterk
verbintenis tussen President Zuma en die Gupta familie is. Die derde
been van hierdie verhouding van die Bermuda Triangle is die Russe.
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[Tussenwerpsels.] Vir die van u wat nie weet wat die Bermuda
Triangle is nie, kom ek verduidelik gou vir u. Dit word ook die
―devils triangle‖ genoem. Dit is daar in die Noord-Atlantiese Oseaan
waar skepe misterieus verdwyn. Daar is sekere ooreenkomste, reg,
Minister Tina Joemat-Pettersen? [Tussenwerpsels.]
Ek wil dit gou duidelik stel. Die verhouding het jare gelede begin
en die kernkragprogram was op 9 Desember 2015, net ure voor Minister
Nene in die pad gesteek is, deur President Zuma en die Kabinet
goedgekeur. Baie interessant.
President Zuma het van die begin af die hele proses gedryf en dit
was geken aan geheime vergaderings, geheime dokumente,
geklassifiseerde finansiële state wat nie bekend gemaak was nie, ...
Mr T C MOTLASHUPING: Agb Voorsitter, ek wil net vra of ek ‘n vraag
aan die agb lid, wat op die oomblik hier debateer, kan stel.
(Translation of Afrikaans paragraphs follows.)
[Mr W F FABER: Hon Chairperson, Minister and members of the NCOP,
over the past few weeks we have already seen that there a strong
bond exists between President Zuma and the Gupta family. The third
leg of this relationship of the Bermuda Triangle is the Russians.
[Interjections]. For those of you who do not know what the Bermuda
Triangle is, let me quickly explain to you. It is also known as the
―devil‘s triangle‖. It is over there in the North Atlantic Ocean
3 May 2016
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where ships disappear mysteriously. There are certain resemblances,
right, Minister Tina Joemat-Petterson? [Interjections.]
I would quickly like to make it clear. The relationship began years
ago and the nuclear energy programme was approved by President Zuma
and the Cabinet on 9 December 2015, only hours before Minister Nene
was fired. Very interesting.
President Zuma drove the whole process from the outset and this was
characterised by secret meetings, secret documents, classified
financial statements that were not made known,...
Mr T C MOTLASHUPING: Hon Chairperson, I just want to inquire whether
I may ask a question of the hon member who is currently debating
here.]
HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi): Let me
first ascertain whether he will take a question.
Mr W F FABER: Chairperson, I will help him with his iPad outside,
not now. I will not answer a question.
President Zuma het selfs publieke deelname eenkant geskuif en
industriekenners geignoreer.
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Ek wil dit gou duidelik stel dat ons nie teen veilige
kernkragontwikkeling is nie. Ons is glad nie daarteen gekant nie,
maar dit is duidelik dat hierdie transaksie ons ekonomie sal knak en
eie persoonlike gewin die hoofrede vir die ooreenkoms met die Russe
is. Ek gaan nou nie sê wie dit is nie, maar in elk geval, ons weet
dit.
In Rosatom-maatskappy self is 300 werknemers ontslaan weens bedrog,
insluitend heelwat van hul topbestuur. Dit klink nogal vir my so
half bekend.
Die berugte Oakbay-maatskappy saam met Shiva-uraan het ook hier sy
kop uitgesteek met die aankoop van Rietkuil-uraanmyn, terwyl uraan
pryse bitter laag was. Die uraanmyn aankoop wat verliese maak, maak
nie eintlik sin nie. Dis toevallig dat die Guptas saam met President
Zuma se seun, Duduzane Zuma, die uraanmyn aangekoop het en dat
President Zuma gehelp het om staatsfonds vir hulp aan te bied met
die Rietkuil-uraanprojek. (Translation of Afrikaans paragraphs
follows.)
[President Zuma even pushed public participation to one side and
ignored industry experts.
I quickly want to make it clear that we are not against safe nuclear
energy development. We are not at all opposed to it, but it is clear
that this transaction will damage our economy and that personal gain
3 May 2016
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is the main reason for the agreement with the Russians. I am not
going to say now who they are, but in any case, we know.
In the Rosatom company itself 300 employees were dismissed because
of fraud, including several of their top manangement. This sounds
rather familiar to me.
The infamous Oakbay company together with Shiva Uranium also stuck
out its head here with the purchase of the Rietkuil uranium mine,
while uranium prices were extremely low. The uranium mine purchase,
which makes losses, does not really make sense. It is a coincidence
that the Guptas purchased the uranium mine together with President
Zuma‘s son, Duduzane Zuma, and that President Zuma helped to offer
state funding for assistance with the Rietkuil uranium project.]
There is much controversy and secrecy around the Glencore deal.
Glencore was offered a much higher offer of R3,17 billion from a
competitor, Endulweini Mining, which would have protected workers
and provided them with an ownership share. However, they settled for
a deal with the Gupta‘s for far less, for R2,15 billion, well below
the alternative offer.
The Minister of Energy, Tina Joemat-Pettersson also deliberately,
deliberately, incorrectly tabled the infamous Russian
Intergovernmental Framework Agreement, IGA, under section 231(3) of
the Constitution, to avoid having to get parliamentary approval for
3 May 2016
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it. As we know, there are still may more deals that are not even
mentioned here today, like coal supply to Eskom, Richards Bay Coal
Terminal export rights, etc.
The relationship between President Zuma, the Gupta family and the
pending Russian nuclear deals raises more questions than answers.
The DA is committed to finding these answers, as did find a lot of
other answers, and revealing the nuclear energy deal for what it is
— President Zuma putting himself and the ANC first again, and South
Africa second. Thank you.
Mr L B GAEHLER: Hon Chairperson, the UDM supports the budget. There
is widespread popular support for using renewable energy, especially
solar and wind energy, which provides electricity without giving
rise to any carbon dioxide emissions.
The failure to avert or manage the electricity crisis in the past
has caused untold harm to households and businesses. What is worse,
in many areas, electricity provision is being used as a method to
punish communities that did not vote for the ruling party.
Electricity provision is one of the prime examples of selective
development by government, which purposefully neglects rural areas.
Electricity is a fundamental factor in a wide range of socioeconomic
matters. It is the lifeblood of an economically active community.
Reliable electricity improves the quality of life of the poor,
particularly in rural areas. The United Democratic Movement calls on
3 May 2016
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the government to give priority to rural communities when it rolls
out the solar and wind energy.
The past 20 years, this government, the ANC government, who governs
with our taxes, ...
Lo rhulumente lona, ndikwenzele lula, usebenzisa abantu basezilalini
njengabantu bokuvota. Umbane awukho. Iyasothusa ukubona abantu, emva
kwama-20 yeminyaka yenkululeko, betshisa izakhiwo zikarhulumente
ngenxa yokungaziswa kweenkonzo ngurhulumentye we-ANC. Lo rhulumente
ujongene nabantu basezidolophini. Ukuba uhamba ngohola wendlela uN2, uya kuwubona umbane kodwa ukuba uya ezilalini awukho umbane.
Kutheni urhulumente angabaniki abantu basezilalini umbane
nezinkcenkce zombane zisebenza ngelanga? (Translation of isiXhosa
paragraph follows.)
[This government, to simplify it for you, is using rural people for
votes only. There is no electricity there. It is surprising to
witness, after 20 years into democracy, people burning government
buildings because of lack of service delivery by the government of
the ANC. This government is only looking after the people who stay
in the urban areas. If you are driving on the N2 freeway, you would
notice that there is electricity but if you go to the rural areas,
there is no sign of electricity. Why the government of the ANC is
not providing the rural communities with electricity and solar
energy.]
3 May 2016
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Ms L C DLAMINI: Banawo. [They have electricity.]
UMnu L B GAEHLER: Banawo eMpumalanga, unyanisile kodwa eMpuma Koloni
abanawo. Ukuba uyaphaya koo-Alfred Nzo, kuMasipala wesiThili iAmathole, eKing Sabata Dalindyebo, sokuze uwubone umbane. Yintoni le
ingaka abanenza yona abantu basezilalini. Kutheni le nto
ningabanikiyo umbane? Kutheni nikhetha ngeerhafu zethu? Niphethe
ngeerhafu zethu, musani ukuziqhatha apha. Kutheni umntu kufuneka
athandane nomntu we-ANC ngaphambi kokuba afumane umbane, azalane
nomntu we-ANC ngaphambi kokuba afumane umbane okanye kubekho
uMphathiswa we-ANC ukuze bancedwe abantu ngeenkonzo zabo? Unyanisile
phaya kuni, ukhona phaya kuba ulilungu le-ANC kodwa aba bantu
bangayivotelanga i-ANC kutheni le nto umbane udlula phezu kwabo?
Sithi kubahlali, ukuba lo rhulumente akanincedi, votelani amanye
amaqela. Enkosi. [Uwelewele.] (Translation of isiXhosa paragraph
follows.)
[Mr L B GAEHLER: They have it in Mpumalanga, that is true but in the
Eastern Cape, they don‘t. If you go to the Alfred Nzo, Amathole,
King Sabata Dalindyebo District Municipalities, you will not see the
sign of electricity there. What did the people of rural areas ever
do to you? Why are you not providing them with electricity? Why are
you being inequitable with our taxes? You are governing with our
taxes, please do not deceive yourselves. Why one must have an affair
with a member of the ANC before receiving electricity, be a relative
3 May 2016
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to a member of the ANC before receiving electricity or have the
Minister of the ANC before people receive service delivery? Yes, you
quite correct that you have it in your area, because you are a
member of the ANC but then are the electricity provision jumping
over those who did not vote for the ANC? We are saying to the
communities, if this government is not providing you with
electricity, vote for other parties. Thank you. [Interjections.]]
Mr S G MTHIMUNYE: Hayikhona, malibongwe. [No ways, let it be
praised.]
Hon House Chair, I have a book that I want to recommend to hon
Khawula and hon Gaehler. It is titled, Confessions of an economic
hitman. This hitman happened to be a former CIA spy called John
Perkins. Please read that book and let‘s share ideas around it. You
know there are three planning tools in government, beginning from
local ... [Interjections.]
Mr L B GAEHLER: Chairperson, will the hon member take a question of
clarity on what he said please. [Interjections.]
The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi): Hon
Mthimunye, are you ready to take a question?
Mr L B GAEHLER: I am.
3 May 2016
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HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi): He is
ready; you can ask a question hon Gaehler.
Mr L B GAEHLER: Is that book going to help me, help you, in
delivering services to the people in the rural areas? Thank you.
Mr S G MTHIMUNYE: I think so, it will help you. [Interjections.]
[Laughter.]. Hon House Chair, there are three planning tools in
government. There is a national planning tool, provincial planning
tool and there is a local planning tool and they are all interlinked
to one another. And all these tools are consulted around when they
are being developed especially at local government level. I am not
sure what is this skewed planning of ...
... umathandana, umuntu kufanele athole ugesi ekhulunywa utata uGaehler ukuthi iphumaphi. [... as for favouritism, a person must get
access to electricity, I do not know what hon Gaehler is talking
about.]
By the way we also come from the rural areas hon Gaehler, we know
exactly what a rural area looks like and we know what is happening.
The Minister has shared some statistics with us that currently, 88%
of South Africans have access to electricity. What are you talking
about when you say majority? What is majority? How is your
mathematics? Out of 100%, 88% of South Africans have electricity
nationally. Resolving the energy challenge and developing the energy
3 May 2016
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sector is key to easing constraints to growth. Boosting the
manufacturing sector, contributing to GDP and ensuring that the ANC
delivers on its commitment to maximise access to energy for all
especially in rural areas as part of the ANC objective in the fight
against poverty, inequality and unemployment.
The country is confronted by a developing economy that depends on
energy infrastructure to grow. Any shortage of electricity serves as
a significant constraint on the economic growth. The need for
investment in additional capacity to provide appropriate energy
resources compels the exploration of various ways to secure the
energy supply in the country, hon Faber, and that cannot closeout
nuclear energy. The core business of the Department of Energy as
premised in the Energy White Paper of 1998 as well as the National
Energy Act of 2008 which, amongst others, mandates the department to
ensure that diverse energy resources are available in sustainable
quantities and at affordable prices to the South African economy in
support of economic growth and poverty alleviation while taking into
account environmental management requirements and interactions
amongst economic sectors.
The ANC as the first democratically elected government when it
assumed office in 1994, proposed a National Electrification Plan in
its 1994 manifesto. The idea of a National Electrification Plan was
envisaged in the Freedom Charter, which called for the provisions of
basic services for all. Since 1994, the ANC government has provided
3 May 2016
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what I have already mentioned in my opening remarks that almost 88%
of South Africans have access to electricity nationally in this
country. Eskom which supplies 95% of the country‘s electricity is
having challenges with its coal fired plants and the ANC 2015
National general Council, NGC asserted the position that Eskom
should remain at the centre of South Africa‘s energy industry,
including in the new build programme.
With regards to the NDP, it will ensure that by 2030, South Africa
has an energy sector that promotes economic growth and development,
social equity through expanded access to energy services and
environmental sustainability through efforts that seeks to reduce
pollution and mitigate the effects of climate change. Energy
security is a prerequisite for achieving the 5,5% economic growth
target as envisaged by the National Development Plan. To realise
this vision, South Africa's energy systems need to be supported by
effective policies, institutions, governance systems, and regulation
and competitive markets. We need to ensure that there is security of
energy supply and adequate infrastructure - generation, transmission
and distribution in order to support economic development. The
department has made meaningful contribution to creating decent
employment, reducing poverty and contribution to economic growth. It
has contributed to sustainable human settlements and has improved
the quality of household life through the rural electrification
programme. Owing to the reduction in revenue estimates of the
country over the 2016 MTEF period relative to the estimates
3 May 2016
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contained in the Medium-Term Budget Policy Statements (MTBPS),
substantive budget reductions had to be implemented by National
Treasury over this period. The total original indicative allocation
for Vote 26 of R24.85 billion over the MTEF period, R7.69 billion in
2016-17, R8.33 billion in 2017-18 and R8.82 billion in 2018-19 has
been adjusted downward.
It is acknowledged that the country relies heavily on coal for
electricity generation and this emphasises the importance to
diversify the energy mix. With regard to diversifying the energy
mix, one of the key areas is the renewable energy sector,
specifically solar and wind energy and the need to accelerate gas.
As part of government strategy to realise the goals of the National
Development Plan, the Nine-Point Plan sets out immediate actions and
priorities for growing and transforming the economy, creating jobs
and attracting investment. It is premised on the understanding that
economic growth and development requires the collective effort of
all partners. The ANC government has adopted various short and
medium-term strategies to overcome power generation, including the
successful Independent Power Producers, IPP, model for renewable
energy and the planned extension of the IPP model to coal and gas
projects issues to do with sweeping.
In conclusion, the ANC has improved millions of lives by providing
the nation with essential services such as water, sanitation,
electricity and housing. The services provided by municipalities
3 May 2016
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have reduced poverty and restored dignity in the lives of many
people in South Africa. The Nine-Point Plan is correctly positioned
towards growing and transforming the economy, creating jobs and
attracting investment. We remain optimistic that the continued
implementation will mitigate the current difficult economic
situation. Government is doing all it can to attract more investors
in order to turn the economy around, create employment, and reduce
poverty and inequality. However, the success requires the collective
effort of all partners in the country.
Hon Faber, the debate is about Budget Vote 26: Energy and the Guptas
are not providing energy in this country. [Interjections.] They have
nothing to do with the provision of energy in this country. It is
the ANC-led government that delivers electricity to the communities
of South Africa. [Interjections.] If you so wish to have any deals
with the Guptas, you are more than welcome to go and see them
wherever they are.
Hheyi, nangu umgani wami, indodana yolahleko ye-ANC, ubaba uKhawula.
[Uhleko.] [Hey, here is my friend, a prodigal son of the ANC, Mr
Khawula. [Laughter.]]
Mr M KHAWULA: Hon Chairperson, on a point of order: The hon member
is misleading the House badly. I am not a prodigal son of the ANC. I
don‘t know what their membership card looks like, I have never ...
3 May 2016
Page: 135 of 165
The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi): No,
you have made your point.
Mr M KHAWULA: I have only known one party in my life, the IFP. So he
must withdraw that. I have never been in the ANC. [Interjections.]
The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi):
Take your seat hon Khawula. Hon Mthimunye, can you withdraw that
part of misleading the House?
Mr S G MTHIMUNYE: I can put a context to it hon House Chair. The IFP
comes from the ANC. [Interjections.]
The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi): No!
hon Mthimunye, we are not talking about the IFP, we are talking
about hon Khawula. Can you kindly withdraw that statement?
Mr S G MTHIMUNYE: On that score hon House Chair, I will withdraw.
But I maintain the fact that the IFP comes from the ANC.
[Interjections.] And therefore it is actually a splinter
organisation from the ANC. [Interjections.] And we hope that it will
come back home one day ... [Interjections.] [Laughter.] ... because
if it doesn‘t come home anyway, it will die a political death.
[Interjections.] [Applause.] [Laughter.]
3 May 2016
Page: 136 of 165
The MINISTER OF ENERGY: Hon House Chairperson, hon members, there is
no nuclear deal, the DA wants procurement documents, procurement of
what? There is a court case, a court case for what. Now, if you want
public participation you have the freedom to do so, that‘s why you
are parliamentarians.
Please do public consultation as well, NA and the NCOP you have the
right to do public consultation. If we have presented the
intergovernmental incorrectly, we are ready to do it correctly to
correct our mistakes.
So, we are not pushing ahead with any procurement until we have
complied with every legal process, until we have done public
participation. So there is no procurement, there is no deal. The
intergovernmental agreement was not a rushing agreement. We have
published the agreements from China, the agreements with France, the
agreements with South Korea, but you remain obsessed with this
communist Russia. Russia is no longer a communist state. Yes, they
are part of Brics. When we are part of Brics, you have no problem
but when we do nuclear energy with somebody, we haven‘t done
anything yet.
The President has said that the process will be in line with all the
legal procurement processes. We will do it at the pace, the scale,
and the price, which South Africa can afford. It will be affordable.
If it is not affordable, it cannot be done. It is with the
3 May 2016
Page: 137 of 165
independent power producer‘s programme. If you say it is going to be
corrupt then all the Independent Power Producer, IPP programmes are
corrupt.
I have said consistently in the House that there is no deal. Now if
there is a deal, please, after two years can you provide proof of
this deal? Hon members, we have announced and in my speech, I have
announced the launch of the small-scale renewable energy programme
under the IPP programmes.
So far, it is the first window under the small-scale projects. Which
language are we speaking, small-scale projects, I said so in my
speech. One megawatt up to five megawatts, and allow these hundred
megawatts for small-scale projects. Please, we are speaking the same
language. This addresses the issue of NESA small-scale embedded
generation.
We have gone out of our way to expedite the Independent Power
Producers, IPP, programme. So if you are snoozing you lose. Don‘t
snooze, you are losing, okay; and with the small-scale independent
power producers, with projects that generate between one megawatt,
to five megawatts, we said solar, wind, biomass and landfill gas
projects. Your own constituency has already applied. So you are
going to snooze and you are going to lose because you are obsessed
with the nuclear.
3 May 2016
Page: 138 of 165
In conclusion, the department is working ... [Interjection.]
Mr W F FABER: Chairperson, I would like to know if the hon Minister
would take a question please.
The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi): No,
no hon member, hon Minister are you ready to take a question.
The MINISTER OF ENERGY: Thank you very much, no.
The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr A J Nyambi): No,
take your seat hon Faber; continue hon Minister.
The MINISTER OF ENERGY: The hon member‘s speech was so irrelevant I
don‘t even know what question he would be able to ask. The
department is working with the Municipal Infrastructure Support
Agent, MISA located in the Department of Cooperative Governance and
Traditional Affairs and Eskom to provide electricity in all your
wards and all your municipalities.
I ask you once more; monitor two of those programmes. I need the
assistance of the NCOP to ensure that the money is going to where it
is intended to be. If there is any suspicion of corruption, please
report it. We are not here to celebrate corruption. We are here to
fight corruption.
3 May 2016
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At the same time, we will ensure that energy needs are met in an
integrated fashion across government. Ninety percent of the budget
goes to the provinces, a transfer to the provinces. Please provinces
make sure that it is spent on the intended purpose.
I would like to once more, thank the Director-General and the senior
managers in particular. I would like to thank the Ministry, the
officials in the Ministry who have a tough time working in this
department; our state owned entities, our Members of Parliament, our
Members of the NCOP, once more, House Chairperson I cannot say how
much I value the input I have received today. Ke a leboha. Enkosi
kakhulu. Thank you very much, hon Faber. [Applause.]
Debate concluded.
The Council adjourned at 18:00.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORT
FRIDAY, 18 MARCH 2016
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
3 May 2016
1.
Page: 140 of 165
Assent by President in respect of Bills
(1)
Local Government: Municipal Electoral Amendment Bill [B 22B – 2015] – Act No 1
of 2016 (assented to and signed by President on 11 March 2016).
COMMITTEE REPORTS
Please see pages 59-73 of the ATCs.
WEDNESDAY, 23 MARCH 2016
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Justice and Correctional Services
(a)
Progress report dated 29 February 2016 on the provisional suspension from office of Mrs R
M Malahlela, aspirant additional magistrate at Delmas, in terms of section 13(3)(f) of the
Magistrates Act, 1993 (No 90 of 1993).
(b)
Progress report dated 29 February 2016 on the provisional suspension from office of Mr I
W O M Morake, a magistrate at Lichtenburg, in terms of section 13(3)(f) of the
Magistrates Act, 1993 (No 90 of 1993).
3 May 2016
(c)
Page: 141 of 165
Progress report dated 29 February 2016 on the provisional suspension from office of Mr M
J Kgomo, an additional magistrate at Randburg, in terms of section 13(3)(f) of the
Magistrates Act, 1993 (No 90 of 1993).
(d)
Progress report dated 29 February 2016 on the provisional suspension from office of Mr L
Zantsi, an aspirant magistrate at Laingsburg, Western Cape Province, in terms of section
13(3)(f) of the Magistrates Act, 1993 (No 90 of 1993).
(e)
Progress report dated 29 February 2016 on the provisional suspension from office of Ms J
F van Schalkwyk, chief magistrate at Kempton Park, in terms of section 13(3)(f) of the
Magistrates Act, 1993 (No 90 of 1993).
(f)
Report by the Magistrates Commission dated 29 February 2016 on the upliftment of the
provisional suspension of Mr P S Hole, Magistrate at Kimberley, in terms of a resolution
of the Assembly on 20 June 2013.
2.
The Minister of Social Development
(a)
Report and Financial Statements of the Central Drug Authority (CDA) for 2014-15.
WEDNESDAY, 30 MARCH 2016
COMMITTEE REPORTS
National Assembly and National Council of Provinces
3 May 2016
Page: 142 of 165
Please see pages 1-5 of the ATCs.
THURSDAY, 31 MARCH 2016
TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a)
2.
Annual Performance Plan of the South African Human Rights Commission for 2016-2017.
The Minister of Energy
(a)
Annual Performance Plan of the Department of Energy for 2016-2017 [RP 103-2016].
(b)
Strategic Plan of the National Nuclear Regulator for 2016-2021 and Annual Performance
Plan for 2016-2017.
(c)
Annual Performance Plan of the National Energy Regulator of South Africa for 2016 2017
to 2018-2019.
3.
The Minister of Telecommunications and Postal Services
3 May 2016
(a)
Page: 143 of 165
Report and Financial Statements of Broadband Infraco SOC Limited for 2014-2015,
including the Report of the Independent Auditors on the Financial Statements for 2014-15.
4.
The Minister of Women in The Presidency
(a)
Quarter One Performance Report of the Department of Women for 2015-2016.
(b)
Quarter Two Performance Report of the Department of Women for 2015-2016.
(c)
Quarter Three Performance Report of the Department of Women for 2015-2016.
MONDAY, 4 APRIL 2016
TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a)
Strategic Plan of the Office of the Public Protector South Africa for 2016-2021
and the Annual Performance Plan for 2016-2017.
(b)
Annual Performance Plan of the Commission for Gender Equality for 2016-2017.
TUESDAY, 5 APRIL 2016
3 May 2016
Page: 144 of 165
ANNOUNCEMENTS
National Council of Provinces
The Chairperson
1.
Referral to Committees of papers tabled
(1)
The following papers are referred to the Select Committee on Security and Justice for
consideration and report:
(a)
Progress report dated 29 February 2016 on the provisional suspension from office of
Mrs R M Malahlela, aspirant additional magistrate at Delmas, in terms of section
13(3)(f) of the Magistrates Act, 1993 (No 90 of 1993).
(b)
Progress report dated 29 February 2016 on the provisional suspension from office of
Mr I W O M Morake, a magistrate at Lichtenburg, in terms of section 13(3)(f) of the
Magistrates Act, 1993 (No 90 of 1993).
(c)
Progress report dated 29 February 2016 on the provisional suspension from office of
Mr M J Kgomo, an additional magistrate at Randburg, in terms of section 13(3)(f) of
the Magistrates Act, 1993 (No 90 of 1993).
3 May 2016
(d)
Page: 145 of 165
Progress report dated 29 February 2016 on the provisional suspension from office of
Mr L Zantsi, an aspirant magistrate at Laingsburg, Western Cape Province, in terms
of section 13(3)(f) of the Magistrates Act, 1993 (No 90 of 1993).
(e)
Progress report dated 29 February 2016 on the provisional suspension from office of
Ms J F van Schalkwyk, chief magistrate at Kempton Park, in terms of section
13(3)(f) of the Magistrates Act, 1993 (No 90 of 1993).
(f)
Report by the Magistrates Commission dated 29 February 2016 on the upliftment of
the provisional suspension of Mr P S Hole, Magistrate at Kimberley, in terms of a
resolution of the Assembly on 20 June 2013.
(1)
The following paper is referred to the Select Committee on Communications and Public
Enterprises for consideration and report:
(a)
Eskom’s tariff increase for 2016-17 and amended pricing structure for municipalities
with effect from 1 July 2016, tabled in terms of section 42 of the Local Government:
Municipal Finance Management Act, 2003 (Act No 56 of 2003), and supporting
documents required in terms of section 42(3) of the same Act.
(2)
The following papers are referred to the Select Committee on Social Services for
consideration:
3 May 2016
(a)
Page: 146 of 165
Amatola Water Board’s proposed increase in water tariffs for 2016-17, tabled in
terms of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
(b)
Overberg Water Board’s proposed increase in water tariffs for 2016-17, tabled in
terms of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
(c)
Magalies Water Board’s Proposed increase in Water Tariffs for 2016-17, tabled in
terms of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
(d)
Mhlathuze Water Board’s proposed increase in water tariffs for 2016-17, tabled in
terms of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
(e)
Sedibeng Water Board’s proposed increase in water tariffs for 2016-17, tabled in
terms of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
(f)
Rand Water Board’s proposed increase in water tariffs for 2016-17, tabled in terms
of section 42 of the Local Government: Municipal Finance Management Act, 2003
(Act No 56 of 2003).
3 May 2016
(g)
Page: 147 of 165
Rand Water Board’s (Bushbuckridge Local Municipality) proposed increase in
water tariffs for 2016-17, tabled in terms of section 42 of the Local Government:
Municipal Finance Management Act, 2003 (Act No 56 of 2003).
(h)
Lepelle Northern Water Board’s proposed increase in water tariffs for 2016-17,
tabled in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(i)
Bloem Water Board’s proposed increase in water tariffs for 2016-17, tabled in
terms of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
(j)
Umgeni Water Board’s proposed increase in water tariffs for 2016-17, tabled in
terms of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Human Settlements
(a)
Draft regulations on levies and fees pertaining to the Community Schemes Ombud Service,
made in terms of section 29(1)(b), (c), (d) and (e) of the Community Schemes Ombud
Service Act, 2011 (Act No 9 of 2011) and submitted to Parliament for approval in terms of
section 29(3) of the Act.
3 May 2016
2.
Page: 148 of 165
The Minister in The Presidency
(a)
Strategic Plan of the National Youth Development Agency (NYDA) for 2016 – 2021 and
Annual Performance Plan for 2016 – 2017.
3.
The Minister of Trade and Industry
(a)
Government Notice No 257, published in Government Gazette No 39818, dated 17 March
2016: Draft Amended Financial Services Sector Code: Codes of Good Practice for public
comment, in terms of section 9(5) of the Broad-Based Black Economic Empowerment
Amendment Act, 2003 (Act No 53 of 2003).
National Council of Provinces
1.
The Chairperson
(a)
Submission of a petition calling for the intervention of the National Council of Provinces
on the alleged failure by the South African Police Services to investigate reported
complaints, and alleged violation of intellectual property right by the South African
Broadcasting Corporation. (From Ms Tloledi Makudubela).
Pursuant to Rule 234 the petition is accordingly referred to the Select Committee
on Petitions and Executive Undertakings for consideration and report.
COMMITTEE REPORTS
3 May 2016
Page: 149 of 165
National Council of Provinces
Please see page 5 of the ATCs.
WEDNESDAY, 6 APRIL 2016
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Human Settlements
(a)
Draft regulations made and submitted to Parliament for consultation in terms of section 19
of the Sectional Titles Schemes Management Act, 2011 (Act No 8 of 2011).
COMMITTEE REPORTS
National Council of Provinces
Please see page 2 of the ATCs.
THURSDAY, 7 APRIL 2016
National Council of Provinces
3 May 2016
1.
Page: 150 of 165
Referral to Committees of papers tabled
(1)
The following paper is referred to the Select Committee on Cooperative Governance
and Traditional Affairs for consideration and report:
(a)
Report on the round table discussion on Youth Development – 29th July 2015.
TABLINGS
National Council of Provinces
1.
The Chairperson
(a)
Report of the Women’s round table discussion, 1 – 2 September 2015.
Please see pages 13-37 of the ATCs.
Referred to the Select Committee on Cooperative Governance and Traditional Affairs
for consideration and report.
FRIDAY, 8 APRIL 2016
ANNOUNCEMENTS
National Assembly and the National Council of Provinces
3 May 2016
Page: 151 of 165
The Speaker and the Chairperson
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
National Land Transport Amendment Bill, 2016, submitted by the Minister of
Transport.
Referred to the Portfolio Committee on Transport and the Select Committee on
Economic and Business Development.
Please see pages 2-25 of the ATCs.
MONDAY, 11 APRIL 2016
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Classification of Bills by Joint Tagging Mechanism (JTM)
(1)
The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 75 Bill:
(a)
Labour Laws Amendment Bill [PMB 5 – 2015] (National Assembly – sec 75).
3 May 2016
Page: 152 of 165
National Council of Provinces
The Chairperson
1.
Membership of Committees
(a)
Change in the Membership of Select Committees of the National Council of Provinces
(NCOP):
Select Committee on Education and Recreation
(Arts and Culture, Basic Education, Higher Education, Sport and Recreation)
Appointed: Hon. Ms M. L. Moshodi (ANC - Free Sate)
Resigned: Hon. Mrs M. F. Tlake (ANC - Free Sate)
Select Committee on Social Services
(Health, Social Development, Home Affairs, Water and Sanitation and Human Settlements)
Appointed: Hon. Ms M. L. Moshodi (ANC - Free Sate)
Resigned: Hon. Mrs M. F. Tlake (ANC - Free Sate)
Joint Committee on Ethics and Members’ Interests
Appointed: Hon. Ms M. L. Moshodi (ANC - Free Sate)
Resigned: Hon. Mrs M. F. Tlake (ANC - Free Sate)
3 May 2016
Page: 153 of 165
TUESDAY, 12 APRIL 2016
COMMITTEE REPORTS
National Council of Provinces
Please see pages 2-7 of the ATCs.
WEDNESDAY, 13 APRIL 2016
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
Protection, Promotion, Development and Management of Indigenous Knowledge
Systems Bill, 2016, submitted by the Minister of Science and Technology on 12 April
2016.
Referred to the Portfolio Committee on Science and Technology and the Select
Committee on Communications and Public Enterprises on 12 April 2016.
3 May 2016
Page: 154 of 165
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Report of the Executive Officer of the Financial Services Board on the Road Accident
Fund for 2014-15.
COMMITTEE REPORTS
National Council of Provinces
Please see pages 7-44 of the ATCs.
MONDAY, 18 APRIL 2016
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
3 May 2016
(a)
Page: 155 of 165
Government Notice No R. 160, published in Government Gazette No 39668, dated 9
February 2016: Regulations for purposes of section 70(4) of the Act, in terms of the Tax
Administration Act, 2011, (Act No 28 of 2011).
(b)
Government Notice R. 172, published in Government Gazette No 39686, dated 12
February 2016: Amendment of Schedule No 1 (No 1/1/1533), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(c)
Government Notice R. 209, published in Government Gazette No 39765, dated 1 March
2016: Regulations in terms of Section 12T(8), in terms of the Income Tax Act, 1962 (Act
No 58 of 1962).
(d)
Government Notice R. 239, published in Government Gazette No 39799, dated 11 March
2016: Amendment of Schedule No 1 (No 1/1/1535), in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
(e)
Government Notice R. 240, published in Government Gazette No 39799, dated: 11 March
2016: Amendment of Schedule No 1 (No 1/1/1534) in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
(f)
Government Notice R. 392, published in Government Gazette No 39892, dated 31 March
2016: Amendment of Schedule No 1 (No 1/3A/19), in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
3 May 2016
(g)
Page: 156 of 165
Government Notice R. 393, published in Government Gazette No 39892, dated 31 March
2016: Amendment of Schedule No 6 (No 6/1C/41)in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
(h)
Government Notice R. 394, published in Government Gazette No 39892, dated 31 March
2016: Amendment of Schedule No 6 (No 6/1D/06), in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
(i)
Government Notice No R. 395, published in Government Gazette No 39892, dated 31
March 2016: Amendment of Schedule No 1 (No 1/2A/157), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(j)
Government Notice No R. 396 published in Government Gazette No 39892, dated 31
March 2016: Amendment of Schedule No 1 (No 1/1/1536), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(k)
Government Notice No R. 397, published in Government Gazette No 39892, dated 31
March 2016: Amendment of Schedule No 1 (No 1/5A/161), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(l)
Government Notice No R. 398, published in Government Gazette No 39892, dated 31
March 2016: Amendment of Schedule No 6 (No 6/1C/42), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
3 May 2016
Page: 157 of 165
(m) Government Notice No R. 399, published in Government Gazette No 39892, dated 31
March 2016 2015: Amendment of Schedule No 6 (No 6/1D/07), in terms of the Customs
and Excise Act, 1964 (Act No 91 of 1964).
(n)
Government Notice No R. 400, published in Government Gazette No 39892, 31 March
2016: Amendment of Schedule No 1 (No 1/3C/20), in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
(o)
Government Notice No R. 401, published in Government Gazette No 39892, 31 March
2016: Amendment of Schedule No 1 (No 1/3D/21), in terms of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
(p)
Government Notice No R. 402, published in Government Gazette No 39892, 31 March
2016: Amendment of Schedule No 6 (No 6/3/44), in terms of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(q)
Government Notice No R. 403, published in Government Gazette No 39892, 31 March
2016: Amendment of Schedule No 6 (No 6/3/43), in terms of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(r)
Government Notice No R. 414, published in Government Gazette No 39911, 8 April 2016:
Amendment of Schedule No 2 (No 2/1/374), in terms of the Customs and Excise Act, 1964
(Act No 91 of 1964).
3 May 2016
(s)
Page: 158 of 165
Government Notice No R. 415, published in Government Gazette No 39911, 8 April 2016:
Amendment of Schedule No 3 (No 3/1/716), in terms of the Customs and Excise Act, 1964
(Act No 91 of 1964).
(t)
Government Notice No R. 416, published in Government Gazette No 39911, 8 April 2016:
Amendment of Schedule No 3 (No 3/1/717), in terms of the Customs and Excise Act, 1964
(Act No 91 of 1964).
(u)
Government Notice No R. 418, published in Government Gazette No 39915, dated 11
April 2016: Amendment of Schedule No 1 (No 1/1/1537), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(v)
Government Notice No R. 419, published in Government Gazette No 39915, dated 11
April 2016: Amendment of Schedule No 1 (No 1/1/1538), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
2.
The Minister of Defence and Military Veterans
(a)
Report of the South African Defence Review 2015.
THURSDAY, 21 APRIL 2016
ANNOUNCEMENTS
National Council of Provinces
3 May 2016
Page: 159 of 165
The Chairperson
1.
Referral to Committees of papers tabled
Correction (incorrect Committee referral in ATC of 18 November 2015):
(1)
The following papers are referred to the Select Committee on Finance for consideration:
(a)
Report (Integrated) and Financial Statements of the South African Airways Soc Ltd
(SAA) for 2013-14, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2013-14.
(b)
Corporate Plan of the South African Airways Soc Ltd (SAA) for 2015.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Justice and Correctional Services
(a)
Government Notice No 226, published in Government Gazette No 39785 dated 4 March
2016: Prescribed Rate of Interest, in terms of the Prescribed Rate of Interest Act, 1975 (Act
No 55 of 1975).
MONDAY, 25 APRIL 2016
3 May 2016
Page: 160 of 165
ANNOUNCEMENTS
National Council of Provinces
The Chairperson
Please note: The following entry replaces item 1 in the name of the Chairperson of the National
Council of Provinces under Announcements in the ATC of 2 December 2015, on
page 6086:
1.
Report on newly appointed member of Technology Innovation Agency Board
(a)
Report on the Newly Appointed Member of the Technology Innovation Agency Board in
terms of section 7(4) of the Technology Innovation Agency Act, 2008 (Act No 26 of 2008)
as amended.
Referred to the Select Committee on Communications and Public Enterprises for
consideration.
TUESDAY, 26 APRIL 2016
ANNOUNCEMENTS
National Assembly and National Council of Provinces
3 May 2016
1.
Page: 161 of 165
Classification of Bills by Joint Tagging Mechanism (JTM)
(1)
The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 75
Bill:
(a)
2.
Immigration Amendment Bill [B 5 – 2016] (National Assembly – sec 75).
Membership of Committees
The following members have been nominated to serve on the Joint Standing Committee on the
Financial Management of Parliament:
NATIONAL ASSEMBLY
African National Congress
Masondo, Mr NA
Coleman, Ms EM
Gcwabaza, Mr NE
September, Ms CC
Smith, Mr VG
Democratic Alliance
3 May 2016
Page: 162 of 165
Steenhuisen, Mr JH
Economic Freedom Fighters
Mente, Ms NV
Inkatha Freedom Party
Singh, Mr N
NATIONAL COUNCIL OF PROVINCES
African National Congress
Motara, Ms T (Gauteng)
Mohai, Mr SJ (Free State)
De Beer, Mr CJ (Northern Cape)
Democratic Alliance
Essack, Mr F (Mpumalanga)
United Democratic Movement
Gaehler, Mr LB (Eastern Cape)
THURSDAY, 28 APRIL 2016
3 May 2016
Page: 163 of 165
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a) List of Shareholders Index Report of the South African Reserve Bank for 2016, in terms of
section 32(3) of the South African Reserve Bank Act, 1989 (Act No 90 of 1989).
TUESDAY, 3 MAY 2016
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and Chairperson
1.
Bills passed by Houses – to be submitted to President for assent
(1)
Bill passed by National Council of Provinces on 3 May 2016:
(a)
Revenue Laws Amendment Bill [B 4B – 2016] (National Assembly – sec 77).
National Council of Provinces
3 May 2016
Page: 164 of 165
The Chairperson
1.
Membership of Committees
(a)
Hon BG Nthebe has been elected as the Chairperson of the Select Committee on Economic
and Business Development with effect from 3 May 2016.
2.
Referral to Committees of papers tabled
(1)
The following paper is referred to the Joint Standing Committee on Defence for
consideration:
(a)
Report of the South African Defence Review 2015.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Corporate Plan and Medium Term Framework of the Land Bank for 2016/17 – 2018/19.
(b)
Land and Agricultural Development Bank of South Africa Shareholder’s Compact for
2016/17.
3 May 2016
COMMITTEE REPORTS
National Council of Provinces
Please see pages 124-165 of the ATCs.
Page: 165 of 165