Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 14 Nov 2013

Summary

No summary available.

Minutes

UNREVISED HANSARD

THURSDAY, 14 NOVEMBER 2013

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCE

The Council met at 14:00

The 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

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

That the Council -

pays respect and sympathy on the death of Mr M J “Joel” Mafereka , a member of the Free State Provincial Legislature, who passed away on Monday, 11 November 2013;

notes that Mr Mafereka served in the Free State Provincial Legislature from 1999 to 2004;
further notes that Mr Mafereka was an ANC MEC on various portfolios; and

extends its heartfelt condolences and sympathy to his family and relatives.

The HOUSE CHAIRPERSON (Mr M J Mahlangu): Just before I move to the next motion, may I welcome the former Deputy Chairperson of the NCOP, hon Peggy Hollander, who is our visitor in the gallery today. Welcome hon Peggy. [Applause.]

Mr F ADAMS: Chairperson, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the ANC:

That the Council -

notes that a DA councillor of the of the City of Cape Town was arrested and appeared in Court last week on charges of allegedly having defrauded the social grant system by claiming and collecting pension money well knowing that he was acting fraudulently;

further notes that in terms of applicable legislation and regulations, a person only qualifies for a pension if he/she does not earn more than R 49 200 per year while this councillor however earns 8 times that amount and also enjoys travel and cell phone allowances;

also notes that the Democratic Alliance that portrays itself as a party of high moral standards that is hard on fraud and corruption, has by its silence and failure to take appropriate steps against this councillor, effectively condoned the alleged fraud; and

takes this opportunity to call on the DA to do the right thing and to put its money where its mouth and to suspend this councillor.

Mr V M MANZINI: Chair, I hereby give notice that on the next sitting day of the Council I shall move on behalf of the DA that the Council notes:

That the Council -

notes that the electricity from the country’s first solar power plant, the 75 megawatt Kalkbult solar PV power station, flowed into the national grid on Tuesday, making it the first solar plant to come online;

further notes that Kalkbult in the Northern Cape which is about halfway between De Aar and Hopetown will generate 155 million koliwatt hours a year, equivalent to the annual electricity consumption of 33000 household;

also notes that the solar plant is one of scores of private renewable energy plants the government has authorised to provide green electricity for the next 20 years;

also notes that this is part of the Department of Energy’s renewable energy independent power producer programme;

further notes that the programme contributes to South Africa’s commitment to combat climate change by reducing carbon footprint primarily from reliance on coal to generate electricity; and

finally notes that the Kalkbult solar plant was built by the Norwegian based company Scatec Solar with local partners.

DEMARCATION PROCESS TO CONSIDER MERGING POOR PERFORMING AND DYSFUNCTIONAL MUNICIPALITIES

(Draft Resolution)

Mr A G MATILA: Chair, I hereby move without notice:

That the Council -

notes the recent announcement by the Acting Premier of the Eastern Cape of the discussions between the Demarcation Board, the provincial government and the Department of Cooperative Government and Traditional Affairs as part of the demarcation process to consider merging poor performing and dysfunctional municipalities;

further notes that discussions are taking place following the regressing of especially smaller municipalities;

also notes that after it had become clear that they will not meet the 2014 clean audit deadline, where after the Demarcation Board will further drive the process and take the public participation process to the affected communities;

further notes and welcomes the hands on support of the provincial treasury and the provincial department of local government in providing the affected municipalities in the meantime with financial management and also for providing funding to some municipalities for the development of their revenue enhancement strategies; and

commends the provincial government on its commitment to support municipalities and to seek solutions to improve the performance and service delivery by municipalities.

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

VOTER REGISTRATION TURNOUT ON 9 AND 10 NOVEMBER 2013

(Draft Resolution)

Mr D D GAMEDE: Chair, I hereby move without notice:

That the Council -

notes with great appreciation reports that the KwaZulu-Natal Province recorded the highest voter turn-out at voter registration over the weekend of 9 and 10 November 2013.

further notes that Gauteng came second followed by the Eastern Cape and the Western Cape;

also notes that 2.5 million people were assisted to register at 22263 registration stations;

further notes that 1088015 or 43.3% people were registering for the first time, and over 80% of the new registrations were young people;

congratulates the KwaZulu-Natal Province and all peace loving South Africans especially the first time voters for coming out in numbers to register; and

calls on all communities to encourage its residents to do the right thing and register to celebrate the 20th anniversary of democracy.

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

BAFANA CAPTAIN CALLS ON SA TO SUPPORT THE TEAM ON A GAME AGAINST SPAIN

(Draft Resolution)

Ms B V MNCUBE: Chair, I hereby move without notice:

That the Council -

notes the call by the Bafana Bafana captain, Itumeleng Khune, that the country's football fraternity should attend in their numbers and witness a thrilling encounter when they take on Spain next week.

further notes that South Africa will lock horns against the star-studded world champions, Spain in an international friendly at the FNB Stadium in Johannesburg on Tuesday 19 November 2013;

also notes that the two sides last clashed in the 2009 FIFA Confederations Cup third place playoffs at the Royal Bafokeng Sports Palace in Rusternburg and Spain were 3-2 victors on the day, after extra-time;

also notes that there is a lot of significance in the fact that the team to score the first goal of the last World Cup (Bafana Bafana) are up against the team that scored the last goal (Spain) at the stadium where Spain were crowned world champions;

supports the call by the Bafana Bafana skipper that South Africans must come out in numbers and support the boys; and

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

ANGLO AMERICAN MINING COMPANY LAUNCHES R20 BILLION INVESTMENT IN LIMPOPO

(Draft Resolution)

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

That the Council -

notes that Anglo American Mining Company has recently launched the construction phase of its De Beers Venetia Underground Diamond Mining Project at its Venetia Diamond Mine in Limpopo, a R 20 billion investment;

further notes that the mine which is a South Africa’s biggest diamond mine and leading producer of diamonds of approximately 3 million carats per year, is an open-pit mine located adjacent to the Venetia Limpopo conservation area;

also notes that the mine is also a leading example of excellent environmental practice and ecological stewardship;

further notes that the launch of this underground mine confirms that South Africa remains an investment destination of choice;

commends the company on its investment decision; and

takes this opportunity to commend the ANC government for creating an environment that continues to ensure that mining investment in South Africa sustainably benefits mining communities and the local labour force.

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

ILLEGAL TRADE BETWEEN SCRAP METAL AND COPPER CABLE THIEVES AND SCRAP METAL DEALERS

(Draft Resolution)

Mr A J NYAMBI: I hereby move without notice:

That the Council -

notes with concern that the illegal trade between scrap metal, copper cable thieves and scrap metal dealers are thriving despite the enactment of the Second Hand Goods Act;

further notes that among others, municipal officials of the City of Cape Town and a scrap yard dealer of Maitland in Cape Town were recently arrested for dealing in stolen goods;

further notes that in the City of Johannesburg, scrap metal thieves are vandalising vacant buildings in the inner city to remove the steel reinforcing rods in the buildings to sell to dealers and thereby creating a danger of buildings collapsing and causing serious injury which may lead to death;

calls on all relevant authorities as well as the police and law enforcement agencies to monitor the dealings of second-hand and scrap metal dealers on an ongoing basis and to ensure that the provisions of the Act is enforced vigorously; and

calls on the Minister of Trade and Industry to introduce amendments to legislation to make provision for much harsher sentences for dealers who buy stolen goods.

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

STORMS LEAVE HUNDREDS HOMELESS IN LIMPOPO

(Draft Resolution)

Mrs M C DIKGALE: I hereby move without notice:

That the Council -

notes that hundreds of families in Limpopo were left homeless when heavy storms hit several districts in the province a week ago;

further notes that the Vhembe District was most severely affected by the heavy rain and wind where more than 500 families were affected and several people were injured;

also notes that schools, shops, churches, buildings, houses and infrastructure were destroyed or damaged, trees were uprooted and electricity disrupted with electricity pylons having been blown down;

commends municipalities and the provincial government for their swift reaction and support in providing affected families with tents and other temporary shelters, mattresses, blankets, food and other necessities; and

takes this opportunity to call on the provincial and local governments to render further appropriate assistance and support, including financial support to families in need to enable them to restore the damage to their homes or to relocate if necessary and also repair and restore the damage to infrastructure as soon as possible.

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

MOLOTO ROAD ACCIDENT CLAIMS LIVES

(Draft Resolution)

Ms M G BOROTO: I hereby move without notice:

That the Council -

notes with shock and sadness that 29 people died in a gruesome accident near Kwaggafontein in Mpumalanga on Monday when a bus collided with a truck, while 30 were injured with 8 still in critical condition;

further notes that the Moloto road has been notorious for some of the country deadliest accidents;

takes this opportunity to convey its profound condolences to the families and loved ones of the deceased victims and wishes those who were injured a speedy recovery;

welcomes the investigation launched by the Minister of Transport into the bus accident; and

calls on the Minister of Transport to ensure that the Moloto Rail Project is expedited to assist in reducing traffic congestion and the carnage that has become the gruesome and atrocious part of the Moloto road.

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

WINNER THREATENED WITH KIDNAPPING

(Draft Resolution)

Ms M W MAKGATE: I hereby move without notice:

That the Council -

notes with great concern and shock reports of the winner of South Africa’s So You Think You Can Dance who has gone into hiding after being threatened with kidnapping;

further note that a 23 years old Khayelitsha dancer, Sibahle Tshibika, who walked away with R250 000.00 in prize money at the finale of So You Think You Can Dance in Johannesburg on Saturday 9 November 2013, was warned together with her family by three people, including a close friend that her life was in danger;

also notes that it is reported that burglars broke into their Khayelitsha shack on Tuesday but fortunately, the family was already gone;

congratulates the young dancer for her sterling performance which will definitely change her life and that of her family for the better;
applauds those who came forward and sensitised the family about the intended criminal act against them; and

calls on the investigating officers to do everything in their power to ensure that the family is protected and criminals are brought to book.

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

NALEEKA AYRGA WINS NEDBANK CAPITAL SPELL IT COMPETITION

(Draft Resolution)

Mr V M MANZINI: I hereby move without notice:

That the Council -

notes that young Naleeka Ayrga won the Nedbank Capital Spell It Championship last week;

further notes that the learner from Mondeor Primary School, South of Johannesburg, beat 10 000 Grade 5 learners;

also notes that she walked away with a trophy which costs R1000 and a Monash University Tertiary Scholarship and her school also received a trophy; and
finally notes that the CEO of Chesskids Academy and Spell It Literacy Programme, Roger Dickinson, said the scholarship that Naleeka won allows her to study any undergraduate course at Monash.

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

MUNICIPALITY OF NEWCASTLE A MODEL OF COST-CUTTING SUCCESS

(Draft Resolution)

Mr M H MOKGOBI: I hereby move without notice:

That the Council -

notes that the ANC-controlled Local Municipality of Newcastle in KwaZulu-Natal has emerged as a national model of cost-cutting success;

further notes that the municipality has no debt having borrowed nothing for 3 years;

also notes that the economy of the municipality is booming at 10% growth and the council could survive for more than 9 months without receiving any rates and taxes;

further notes that it is the only municipality in the province where councillors and officials have elected to ban free meals for themselves;

also notes that the council is the first paperless government at any level in South Africa and has saved at least R 8 million this year by getting rid of paper agendas and distributing documentation electronically;

also notes that it is therefore not surprising that the council has scooped up various rewards recently, including best performing mayor, greenest town, best shopping mall in South Africa and the like;

commends and applauds the mayor and his council and administration on their achievement and dedication in striving towards cost effective and clean government; and

calls on all municipalities to follow this remarkable example.

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

SUSPENSION OF RULE 239(1)

(Draft Resolution)

The ACTING CHIEF WHIP OF THE COUNCIL: Chairperson, I move:

That Rule 239(1), which provides inter alia that the consideration of a Bill may not commence before at least three working days have lapsed since the committee’s report was tabled, be suspended for the purposes of consideration of the Intellectual Property Laws Amendment Bill [B 8B – 2010] (National Assembly – sec 76), Tourism Bill [B 44D - 2012 (Reprint)] (National Assembly – sec 76), Sectional Titles Amendment Bill [B 11B – 2013] (National Assembly – sec 76) and Adjustment Appropriation Bill [B 37- 2013] (National Assembly – sec 77), on Thursday, 14 November 2013.

Question put: That the motion be agreed to.

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

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

The CHAIRPERSON OF THE NCOP: I never gave you the opportunity to make your declarations of vote in terms of Rule 71. Do you want to do that?

HON MEMBERS: No!

The CHAIRPERSON OF THE NCOP: I just wanted to ask so that tomorrow you do not say I did not give you that opportunity.

INTELLECTUAL PROPERTY LAWS AMENDMENT BILL

(Consideration of Bill and of Report of Select Committee on Trade and International Relations thereon)

Mr B A MNGUNI: Chairperson, hon members and hon Ministers present, the Intellectual Property Laws Amendment Bill seeks to amend certain laws, amongst other things, so as to provide for the protection of relevant manifestations of indigenous knowledge as a species of intellectual property. Some of these laws are, and I quote:

The Performers’ Protection Act of 1967, to provide for the recognition and protection of performances of traditional works; the Copyright Act, 1978, to provide for the recognition and protection of indigenous works; to provide for the establishment of a National Council … for the recording of indigenous works; and ... the establishment of a National Trust Fund for Indigenous Knowledge; ...

The third law that the Bill seeks to amend is the Trademarks Act, Act of 1993, to provide for the recognition of indigenous terms and expressions and for the registration of such terms and expressions as trademarks.

The last one it amends is the Design Act of 1993, to provide for the recognition and registration of indigenous designs; and the creation, for this purpose, of a further part of the designs register.

It also introduces statutory provisions for the establishment of a national council in respect of indigenous knowledge, a national database for the recording of indigenous knowledge and a national trust and trust fund for purposes of indigenous knowledge, and to provide for the matters thereto.

The Intellectual Property Laws Amendment Bill went smoothly through the committee except for the last day when the opposition were on a quest to protect individuals who might not be in a position to protect whatever it is — it could be a book or a design.

The difference is that the matter of concern is between the author and the owner. Their argument was that if somebody is not educated and perhaps requests me, for example, as a person who has gone to school, to write a book about him or her, a memoir, then at the end of the day I end up owning the rights to that book.

These are the issues that will be looked into by the department to make sure that if a person is not educated, or cannot do those things on his or her own is taken care of if their intellectual property is put down on paper.

That was a major concern from the DA that we think could be addressed by the department. Other issues that they complained and made a fuss about were, in the committee’s view, administrative issues. One was that, when the Bill goes through to the State Law Advisors and is presented to the President later on, it must have been cleaned up.

I think that those issues are mostly administrative and the committee puts this Report to the House for consideration. [Applause.]

The CHAIRPERSON OF THE NCOP

Declarations of vote:

Mr M J R DE VILLIERS: Hon Chairperson, the declaration of the DA in this sitting of the NCOP is as follows. It is the view of the Western Cape that this Bill should not be all-encompassing and that there should be sui generis legislation to protect traditional knowledge.

This is a view that is widely held in civil society and is not just the view of a particular province or political party; it is also the view of experts in the field. In view of this, the DA introduced such a Private Member’s Bill in the National Assembly. [Interjections.]

Mr F ADAMS: Chairperson, on a point of order: It is a section 76 Bill and the Bill has been passed in the Western Cape Legislature. Now the member is raising a point, which he says comes from the DA, whereas the Western Cape Legislature has passed the Bill. They voted in favour of it.

I just want to find out if it is procedural for him to declare something on this Bill on behalf of the DA even though the DA has passed a similar Bill in the Western Cape Legislature.

The CHAIRPERSON OF THE NCOP: Has it been passed in your legislature hon Mr De Villiers?

Mr F ADAMS: Yes, yes!

Mr M J R DE VILLIERS: No, Chairperson. I do have a letter here ... [Interjections.]

Mr F ADAMS: I have the minutes of the Legislature, Chair ... [Interjections.]

Mr M J R DE VILLIERS: I do have a letter here and it has ... [Interjections.]

The HOUSE CHAIRPERSON (Mr M J Mahlangu): Hokaai! One person at a time.

Mr M J R DE VILLIERS: There is an administrative form in the Western Cape Legislature. I received it and I made sure that this is the correct information.

The HOUSE CHAIRPERSON (Mr M J Mahlangu): The CHAIRPERSON OF THE NCOP: What is the information? Can you declare it in the House?

Mr M J R DE VILLIERS: The information is that —

The Western Cape Provincial Parliament begs to report that it confers on the Western Cape’s delegation in the NCOP the authority not to support the Bill.

That is the letter and it is signed by the Deputy Speaker of the Western Cape Legislature. [Interjections.]

The CHAIRPERSON OF THE NCOP: Order! That one is then dealt with.

Mr F ADAMS: Chair, the minutes that we received from the Western Cape Legislature say that there was no debate and the House has conferred on the permanent delegates in the NCOP the authority to support the Bill.

That was a decision made in the Western Cape legislature. The decision that the member is talking about is in a letter that came from the Deputy Speaker outside of the House — the legislature — after the House had passed the Bill. There was no sitting on that decision. [Interjections.]

The HOUSE CHAIRPERSON (Mr M J Mahlangu): The CHAIRPERSON OF THE NCOP: The letter that I have here I just got from the Table staff and it states that —:

The Western Cape province begs to report that it confers on the Western Cape delegation in the NCOP the authority not to support the Bill, and this is the final mandate which has been given to the delegation.

Continue Mr De Villiers.

Mr M J R DE VILLIERS: Chairperson, thank you very much for that ruling. Unfortunately, this Bill was defeated and we are now left with the fatally flawed Bill before us.

There are other problems of a technical nature in the Bill. For instance, the Bill refers to the Intellectual Property Laws Act of 2011 when no such Act exists. In addition, the Bill refers to a registrar of copyright which is something that also does not exist, and the Bill makes no provision for the formation thereof.

These are some of the reasons why the Western Cape will not support this Bill. Thank you.

Mr D D GAMEDE: Chair, I hereby rise, in accordance with procedure, to support the Bill on behalf of the province. It is quite surprising because what was being said right now by hon De Villiers is what was said just this week whereas the Bill was discussed for some months and nothing was raised in the meetings about the Bill.

The essence of the Bill is to protect the intellectual property of the indigenous people. Quite a lot of the indigenous knowledge of the people is being stolen by people who do not even know that culture or practice, hence they take that culture and make millions out of it. Then the indigenous people of that particular country are left with nothing.

In essence, this Bill is trying to correct all the imbalances of the past. We cannot, at this stage in 20 years of our democracy, say that the deprivation of our people of their indigenous knowledge, of their dancing and of their singing should be promoted by people who do not come from that culture. Therefore, we support the Bill.

Debate concluded.

Declarations of vote made on behalf of Kwa-Zulu Natal and western Cape.

Question put: That the Bill be agreed to.

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

To be confirmed: Western Cape.

Bill accordingly agreed to in accordance with section 65 of the Constitution.

Mr L P M NZIMANDE: Chair, it is a point of order informed by the confusion which was caused by the vote against this Bill. My take on it is that the Council should take into account the statement which was made by hon Adams that there was no debate in the House.

I think it is important that the Presiding Officers of the Council take cognisance of that fact, and that confusion does not arise in the Council where there are two communiqués which are both official. There is proof that there were minutes and that the other letter came afterwards. It is a point that should not be put aside just like that.

The CHAIRPERSON OF THE NCOP: Hon member, thank you very much. The Presiding Officers will look at that, but we all know that the final mandates must be in writing, all of them.

However, you are right. There is confusion, perhaps because of the two communiqués. I am not sure when they do the final mandate whether they go back to the House or the Speaker communicates to that effect, but we will check on that.

Mr F ADAMS: Chair, just on a point of order: On 17 October, Chair, the Western Cape Legislature said “ratification of the final mandate” to say that they support the Bill. I have the minutes here, Chair.

The CHAIRPERSON OF THE NCOP: On the 17th?

Mr F ADAMS: On 17 October. It states here:

Ratification of the final mandate: The mandate conferring authority on the Western Cape Provincial Parliament’s delegation in the NCOP to support the Bill was ratified.

The CHAIRPERSON OF THE NCOP: On the very day, 17 October, they wrote the final mandate that they would not support the Bill. Mr Ndzimande is correct. We will follow up on the two communiqués. I will write to the Speaker of the Western Cape Provincial Parliament and check the anomaly.

Mr D V BLOEM: Chairperson, the Western Cape is the only province which is confused.

The CHAIRPERSON OF THE NCOP: Mr Bloem, what is your point of order? [Laughter.]

Mr D V Bloem: My point of order is that it is the only province that is confused, which carries stinking things in taxis and trains. That’s why they are so confused to this day. [Laughter.]

The CHAIRPERSON OF THE NCOP: Order! I don’t think that it is a point of order. The House has now agreed that the Presiding Officers should look into the matter. We will look into the matter.

TOURISM BILL

(Consideration of Bill and of Report of Select Committee on Trade and International Relations thereon)

The MINISTER OF TOURISM: Hon Chairperson, prior to the drafting of our Tourism Bill of 2012, our sector was governed by the Tourism Act of 1993. The Act was amended three times: in the years 1996, 2000 and 2002 respectively. All of the amendments related to the management of tourist guides.

However, the Act fell short of being an overarching national legislative framework for the management of tourism and became inflexible in responding to the ever-changing landscape of the sector.

Recognising that transformation is vital to ensure the sustainable growth and development of our sector, the Department of Tourism embarked on the drafting of the Tourism Bill. Upon promulgation, the Bill will repeal the Tourism Act of 1993, as amended.

The Bill’s overarching aim is to provide for the development and promotion of sustainable tourism for the social, economic and environmental benefit of all our citizens.

With that in mind, the Bill defines five key objectives, namely to promote the practice of responsible tourism; to provide for the effective marketing of South Africa, both domestically and internationally; to promote quality tourism products and services; and to promote the growth and development of the sector and effective intergovernmental relations in developing and managing tourism.

The Tourism Bill seeks to address the following glaring gaps.

When the Bill is passed as an Act, the National Tourism Sector Strategy, NTSS, which was approved by Cabinet in 2011, will form part of the legislative framework for the management and the development of tourism. The NTSS is premised on tourism growth, enhanced visitor experiences, sustainability, transformation and good governance.

The Bill makes provision for the establishment of a conventions bureau by South African Tourism, Sat, to co-ordinate bids for business events. The necessary steps have already been taken to fund and implement the provisions defined in the Bill for the creation of the conventions bureau.

The Bill will establish the touring grading council as a statutory entity responsible for quality assurance of tourism products, services and facilities. The White Paper and the NTSS recognise the lack of knowledge and understanding within the tourism sector. In the Bill, we therefore provide for knowledge and information management, monitoring and evaluation.

This is aimed at fostering better understanding of the sector, and at improving decision-making. The Bill defines this as voluntary, and allows for incentives for businesses that participate.

One of the major challenges that we have experienced is the differentiation of standards of service facilities and products rendered by the sector throughout our country. Therefore, the Bill also provides for the Minister of Tourism to issue norms and standards to standardise the management and the development of tourism, including the provision of tourism services, facilities and products throughout the country.

Mr Chairperson, the Bill further provides for the determination of codes of good practice as guidelines for the management of tourism. This legislation was the subject of a wide and transparent consultative process with all role-players and I would like to thank everybody who participated in this process.

In conclusion, there is no doubt that the state of our travel and tourism sector in South Africa is remarkable. Our country, as a whole, embodies a very distinct fabric of interwoven cultures, and the world’s eyes have opened up like never before to the beauty, diversity of experiences and endless possibilities that South Africa has to offer.

It is beyond all doubt that the Tourism Bill represents the essence of what will enhance the performance of our sector for decades to come. This legislation heralds a new era for tourism as a major force in the economic transformation of the country; and that is also why it is one of the pillars of the Economic Growth Plan.

I would like to thank the Chairperson, hon Gamede, for his leadership throughout the process of public hearings and deliberations. I also thank the select committee for the amendments that have been made, as they further strengthen the Bill,

And I thank them all for their dedication during this arduous process.

Hon Chairperson, I hereby request that the NCOP pass the Tourism Bill 2012. I thank you.

Mrs B L ABRAHAMS: Hon Chairperson, hon Minister, hon members, guests in the gallery, blessings. [Interjections.] And the same to you, Louis! [Laughter.]

The Tourism Bill, 2012, seeks to provide a framework for the sustainable growth and development of the tourism sector. The tourism sector contributes to the creation of many job opportunities in South Africa.

This Bill covers the marketing of South Africa as a destination, both locally and internationally, through the SA Tourism Board, SATB. This Bill will also ensure that quality control is implemented through the tourism grading council and a chief quality assurance officer will be appointed for the grading system.

When mentioning the tourism grading council, I am sure I speak on behalf of the disabled people in South Africa. It’s long overdue that accessibility is prioritised at all tourism establishments in South Africa.

The tourism grading council and SA Disability Alliance must make sure that this is not just legislated, but that people with a disability actually test all these establishments.

We so often experience inaccessibility in our own committee where some hotels are not compliant although you see all the disabled-friendly signs everywhere you go. Upon entering you find it is not as friendly as the signs indicated.

I sincerely hope that the quality assurance officer will establish the inspection process, as the Minister has mentioned, as well as the monitoring and evaluation team that will check and make sure all establishments comply with the legislation.

Hon Minister, addressing complaints from tourists through the tourism protector and the follow-through need to be treated with respect and as important. It should not be seen as complaints without merit and ignored while the tourist returns and the complaints are not resolved.

We need to be exemplary in that regard. Our tourists should feel secure and know that their complaints will receive the necessary attention and that they will be treated with dignity.

With regard to tour guides, there is a concern that the tourism industry is being dominated by too many unqualified and unregistered tour guides. Part of the function of the national registrar of tourist guides will be to enforce a sound code of conduct and ethics for all tourist guides. Strict control needs to take place to prevent illegal tour guides from operating. Tourism is a key sector in South Africa with the potential to grow the economy and create sustainable jobs.

In conclusion, we are entering he holiday season when many tourists, both local and international, will be visiting our beautiful country, South Africa. I would like to take this opportunity to appeal to all members of this august House to become ambassadors of our beloved country and take the time to welcome all visitors to our country. If possible, make it a memory that will encourage them to return to South Africa.

The department needs to work on a plan for domestic tourism as some of us cannot enjoy the beauty and rich history of our own country. There needs to be a smart card for domestic travellers to register to get discounts for being a local resident. I am aware of certain discounts, but they still do not allow me to travel and benefit throughout South Africa as it is just on certain deals.

I would like to take this opportunity to wish the Minister and all the hon members a blessed and safe holiday season. I hope that they explore the beauty of our country, South Africa, and become part of domestic tourism and add to our economy. Thank you very much. Siyabonga. [Thank you.] Remember, local is lekker! [Applause.]

Mr M NGCINA: Hon Chairperson of the NCOP, hon Minister, hon Deputy Chairperson of the NCOP, premiers, MECs present, members of the NCOP, distinguished guests, ladies and gentlemen, we gather in this august House on the eve of our country celebrating its 20th anniversary of democracy; a democracy that was hard fought for by those who saw a brighter future for the people of this country, in particular those who were marginalised in the past.

The divide that apartheid caused impacted negatively on the lives of people, and mainly Africans. It left them with not too many opportunities to venture into business and to become economically emancipated in a mainly white-dominated industry such as tourism.

The tourism industry is acknowledged as one of the fastest-growing industries in South Africa. Recently the country boasted about its growth surpassing the industry's global target. It is a fact, however, that tourism is chosen as a sector with the potential to create employment particularly for youth and women. Subsequently, this has led to the industry being prioritised through the New Growth Path, NGP, as one of the drivers for decent work creation and also to deliver on the National Development Plan’s job targets.

Significantly, tourism has a wide range of dynamic effects on the economy. These effects include improving the business climate for small-enterprise development; infrastructure development; and developing the informal sector through employing a relatively high proportion of women.

It is important to note that the industry is privately led. However, the supporting role that government is playing in this should not discard. Accordingly government and all stakeholders involved should determine the future of this industry. In noting the foregoing, government should play a crucial role in promoting sustainable tourism.

In addition, regardless of tourism’s huge potential for growth and development in the country's economy, a number of constraints are acknowledged as limiting the effectiveness of the industry to play a meaningful role.

These constraints are a limited and inadequately resourced and funded tourism industry; limited availability of data and market information; limited integration of local communities; lack of infrastructure, particularly in rural areas; growing levels of crimes involving visitors; and more importantly, the slow pace of transformation.

Interestingly, the Bill is responding to these abovementioned challenges. Among other things, it is aimed at the establishment of a national tourism information and monitoring system. This may assist in tracking the socioeconomic benefits such as job creation, skills development and the transformation aspects of the industry.

In spite of its financial implications and administrative burdens, it may be crucial for such a system also to be implemented in the respective provinces to enhance reporting and planning and to further guide the development of the growth of the tourism sector.

It is also essential to note that the establishment of the board and the increase in the scope of its functions is a good move towards promoting growth and realising socioeconomic development benefits in the tourism sector.

What is noteworthy is that the designation of the tourism protector is significant in intensifying and boosting the image and reputation of South Africa as a preferred and global competitive destination.

Furthermore, the registration of tour guides remains important if we note that they are pillars in the tourism industry. In addition, the tourism grading council is vital to maintaining and encouraging higher standards and quality of services, products and facilities.

The Bill thus responds positively in respect of the its objectives, namely to promote responsible tourism; marketing; the quality of products and services; growth and development; as well as co-operation and co-ordination between all spheres of government.

Increasingly, destinations and tourism operations are endorsing tourism as a pathway to sustainable tourism. It is fundamental that this Bill take into account that all stakeholders involved should be responsible for attaining responsible tourism.

Therefore, it is worth noting that as a country we should embrace the enormous potential possessed by the sector and even earmark tourism as a key sector with excellent potential for growth. The enormous growth of the tourism sector from 2010 to date attests to this.

This growth has been attained in spite of the tough economic challenges, as I have mentioned before. In 2012, a total of over 9,2 million international tourists are accounted for as having visited South Africa. Moreover, South Africa's growth rate in 2012 was more than double the average global tourist growth of 4%.

Chairperson, in the light of the issues that I have outlined and the position adopted and by the glorious movement, the ANC, Gauteng province duly supports the negotiated Bill. I thank you. [Applause.]

Mr A J NYAMBI: Chairperson, hon Minister and hon members, let me be upfront and indicate that the ANC supports the Bill.

The commitment and enthusiasm that was displayed by the Minister whilst leading the team in discussions with the committee, during odd hours, in order to explain the details and clarifying, was really inspiring. That is why you have seen the support displayed by the opposition.

Let me indicate that on 25 April last year, a year before the celebration of 20 years of our freedom and democracy, the President, hon Zuma, said:

We are very proud that a country that was once a pariah state is now attracting more international visitors each year.

In 1993 South Africa received 3,4 million foreign visitors while by 2012 the figure had almost quadrupled to 13,5 million visitors of which 9,2 million were tourists.

The South African Reserve Bank reported that the travel receipts increased in the second quarter of 2012, rising by R5 billion to R83,5 billion. This is an all-time record high that far exceeds the level of travel receipts recorded during the time of the 2010 Fifa Soccer World Cup.

The considerable investment by government and the private sector in the tourism industry is beginning to pay off. The magnificent growth in tourism figures is a positive outcome of our transition to a democratic dispensation, and demonstrates the effectiveness of the ANC government’s economic diplomacy, underpinned by a sound foreign policy.

The ANC government’s objectives is to grow our share of over one billion annual tourist arrivals from the global tourism market and also to further grow our domestic market. That is why the decision was taken a few years ago to begin actively marketing South Africa in emerging markets, which has yielded extremely positive results.

The projected growth which envisions South Africa as among the top 20 world tourist destinations and contributing about half a trillion rand to the country’s gross domestic product, GDP, by 2020, will be further evidence that we are successfully setting ourselves apart in a competitive marketplace.

Among other measures to further boost our tourism potential South Africa is looking into flexible visa requirements and improved landing slots at foreign airports as well as improved tourism infrastructure.

Chairperson, South Africa is a developmental state which is faced with challenges of growing and stabilising the economy, ensuring food security, creating sustainable jobs and eradicating poverty. The unprecedented socioeconomic benefits from tourism demonstrate that this is a strategic industry for investment and business opportunities.

The ANC government has therefore committed itself to making the creation of decent work opportunities and sustainable livelihoods the primary focus of our economic policies; and decent work embraces both the need for more jobs and better quality jobs.

The underlying factor is that all economic policies must address the challenges of poverty, unemployment and inequality. The ANC will work with the tourism industry and all other sectors of our economy to achieve these goals. Procurement policies and public incentives will also include requirements to promote decent work.

By working together we can find solutions and make this work. The ANC government will thoroughly and responsibly engage with stakeholders to achieve these goals.

While all South Africans should be more than 100% committed to growing the tourism industry through the work we do, through working with the industry and our partners and through working harder with more passion and more determination, the government will be focusing on developing our tourism industry to contribute to our vision of creating decent work for South Africans, hence the Bill we are passing today.

The ANC government’s policies, such as black economic empowerment and affirmative action, have contributed to the growth of South Africa’s black middle class by 2,6 million in 2007. Small business support has been streamlined and expanded. We will continue with these successful policies also for the effective transformation of the tourism industry.

In the immediate and long term, there is a need to deal with the reality that the sector remains largely untransformed in respect of a range of broad-based black economic empowerment factors, including ownership and management.

Sector transformation remains of the utmost importance on the agenda of inclusive economic participation. In contributing to this goal, the NDP calls for the focus to be on increasing compliance with the gazetted Tourism Charter through the promotion and implementation of the charter, through alignment of the Preferential Procurement Policy Framework Act, through broad-based black economic empowerment and verification of compliance by tourism accredited agencies.

In this regard, President Zuma in his 2009 address to the Tourism Business Council mentioned that the ANC’s government policies such as black economic empowerment and affirmative action have contributed to the growth of South Africa’s black middle class by 2,6 million in 2007.

He indicated that the ANC government will vigorously implement broad-based black economic empowerment and affirmative-action policies and adjust them to ensure that they benefit more broad sections of our people especially the workers, youth, women and people with disabilities.

Policies will, in addition, actively promote skills development and equity in the workplace. Opportunities for the effective transformation of the tourism industry are available and small- business support must be streamlined and expanded.

Chairperson, we should not lose sight of the cultural significance of tourism especially of how it has the potential to help bring about a more peaceful world. Tourism, as a whole, is one of the most powerful tools available for helping to bring about world stability and peace as it is an industry which promotes people-to-people contact and enhances understanding, tolerance and respect within nations as well as across cultures and borders.

In conclusion, South Africa’s tourism strategy is proving to be successful. For that we must thank the ANC government for its foresight and policies and congratulate the tourism industry.

We must also acknowledge the contribution of all South Africans as we all play our role to make tourists feel welcomed in our country. Without the display of that special South African warmth and hospitality, tourists would not be coming in such great numbers to our country.

We have a great country and we must work together to make the world realise its full potential and boost economic growth and job creation through tourism. I thank you. [Applause.]

Ms M ROSHO (North West): Chairperson of the NCOP, hon Mahlangu; hon Deputy Chairperson, Ms Memela; hon Chief Whip of the governing party, the ANC; hon Minister and our head of the Minister and Members of Executive Council, Minmec, hon Marthinus van Schalwyk; and hon members of this august House, greetings to you all.

It gives me great delight, indeed, to have an opportunity to contribute to our national discourse on tourism and participate in the debate on the Tourism Bill. As we all know, in the post-Lehman-Brothers collapse and the financial crisis of 2007 and 2008, one can say we are on the cusp of a brave new world.

If we cast our view across global events, we can see that indeed a consequential change is taking place with the winds of change blowing from West to East, and from North to South. Minister van Schalkwyk calls it a “tectonic shift”. In other words, we have a situation where the developing world is becoming the centre of gravity for economic growth.

As the North West, we are keenly aware of that, and as a means of bringing about change in tourism performance, we have just celebrated tourism month nationally and as a province, as well as representing South Africa.

We are happy to inform this august House that the Bill could not have come at a better time, as we are poised to ensure that we take full advantage of this Bill which seeks to close gaps that were created by previous pieces of legislation.

The Bill will add impetus and accelerate tourism growth in our province and in other provinces. It will create all the linkages for making sure that we create sustainable jobs.

In the North West we have the following initiatives that we have undertaken already and which will be aligned to the Bill. There is our Platinum Service Excellence Programme, which actually promotes excellent tourism services through establishments as well as the role of our tour guides in the province.

We have another initiative called “Moeng Goroga Re Je”, a rural, cultural and heritage tourism programme, aimed at creating tourism benefits for rural areas and promoting responsible tourism in terms of heritage. The North West Tourism Educators Forum is another initiative, which enhances and is actually aligned to our national tourism sector strategy.

The Bill will ensure that there is better co-ordination between the stakeholders, be it at national, provincial or local level. It will ensure better planning as well as efficient and effective allocation of resources across the board.

Furthermore, in the light of the NGP and NDP, we will be able to have a more concerted effort and long-term approach to issues of development, with clear and specific benchmarks to see if we are on the right path in terms of dealing with the pervasive issues of underdevelopment, unemployment, poverty and economic growth.

The NTSS gives us a very systematic approach to the sector so that it can be aligned with other pieces of legislation. This will help us to grow in the sector.

Why, as the North West province, do we support the Bill? Besides promoting international tourism, the Bill will add momentum to the following activities: the Botswana Campaign Programme, a marketing campaign aimed at increasing the SADC market; trade shows and outbound missions, as normally led by the Minister; and inviting most of the MECs from various provinces. There will also be our continued participation in international trade shows and foreign missions to increase investment in the tourism sector.

As the North West, we are considered to be the gateway to the SADC countries. As you all know, our province borders on countries such as Botswana, Zimbabwe, Namibia and other SADC countries. We are able to import and export goods in and out of the country via our province, the North West.

With this Bill we want our neighbours to come back to the province and stay for more than two nights. The per capita expenditure of each visitor will contribute to economic growth and job creation as demand dictates that supply ought to increase. And this Bill does exactly this by creating an environment conducive to making sure it happens. We also continue to promote arts and culture from our various provinces.

As the North West province, we have the N12 Treasure Route which offers a majestic, panoramic view of the valleys, roads and landscapes of the province, and connecting with other tourist attractions such as the Bloemhof Dam and the Taung Skull Heritage Site.

The history of the latter has not yet been sufficiently valued as an archaeological discovery of a fossil that tells us about human evolution. We want to explore that; hence we are currently busy upgrading the site to increase the experiential satisfaction of our visitors, particularly with regard to the Taung Skull Heritage Site.

Hon members, the Dr Ruth Segomotsi Mompati has been declared a hunting destination in our province. It will not only be known as the Texas of South Africa, but will also become a hunting area for the country. This Bill will help us to ensure that we reach that objective.

The tourism numbers in terms of per capita contribution and job creation are quite remarkable, because it has been proven by statistical correlation that for each job in the tourism sector, two are created in the broader economy.

From this point of view, the ratio speaks for itself. It means that for every 10 000 jobs, 20 000 more jobs are created. Now who would disagree with such numbers if, hypothetically speaking, the Bill were to achieve this? The numbers also give us the evidence that it is indisputable the Bill will have a greater impact?

Another critical component of the Bill is responsible tourism, which is the same as sustainable tourism. Under this object, the Bill simple says: Respect the culture, history, and the ecosystem of any particular locality in South Africa. In other words, let us not allow profit-making to be the arbiter of everything, because markets often do not know how to judge the beauty of nature beyond share dividends.

What the Bill does is to say that we have to ensure that we have a social equilibrium in that regard, and as government that’s the kind of balance we ought to strike to make sure that it is sustained.

Hon members, Chapter 2 of the Bill speaks about access to information, which is another pervasive challenge when it comes to decision-making. We know that with information one is in a better position to make an informed choice or decision as to which direction take as a province and also in support of a NDP.

This Bill now empowers the Minister for the purposes of the planning and the development of the tourism sector to establish a database with all the necessary information within the tourism business or sector, and also to make sure that all the other activities are addressed in a transparent way in the sector.

Hon members, we live in a new reality where austerity is the buzz word, and what this Bill does is to fit seamlessly into the new environment, with no extra costs to the state or taxpayers. This is in line with ensuring that our ratio of debt to GDP remains at acceptable levels, which keeps the rating agencies at bay.

They often say that every story has two sides, but the story of this Bill is that the two sides are not that stark, nor are the differences insurmountable; because perfection is not a final state but something that we are always striving towards. As the province, we say, therefore, let us not make the perfect the enemy of the good. This is a good start for tourism in our new dispensation, and let us support the Bill until it becomes the perfect legislation for future posterity that will create sustainable jobs through tourism. As the North West province, we support the Bill. Thank you. [Applause.]

Mrs M C DIKGALE: Deputy Chairperson, hon Minister and hon members, vibrant, equitable and sustainable rural communities with food security for all is one of the 12 outcomes adopted by the 2010 Cabinet Lekgotla. Since poverty alleviation is one of the main challenges for rural areas, tourism remains an advantageous activity for the development of rural economies.

The ANC’s research shows that the South African economy has potential to create employment in rural areas on the necessary scale through tourism. The unprecedented socioeconomic benefits of tourism demonstrate that this is a strategic industry which can sustain growth and transform the quality of growth so that both the benefit and costs change are fairly spread to protect the poor and bring about a more equitable and just society.

A shift from one source of employment to multiple sources is necessary if rural people are to emerge from the poverty trap. In addition to the creation of jobs and revenue, rural tourism often increases other spin-off occupational opportunities in the community, which are not necessarily connected to tourism.

Chairperson, it is generally accepted that urban citizens visit rural areas to escape the stressful city life and enjoy the tranquillity of the countryside while creating a flow of offside currency into a rural economy and indirectly contributing to business development, household incomes and employment.

With most prime tourist attractions being located in the countryside, tourism has the potential to allow rural people to share the benefits of tourism development. It can provide rural people with an alternative to rural-urban migration and enfranchise rural human resources by enabling people to maintain their rural households and families.

Tourism enables rural families to offer bed-and-breakfast accommodation, start small craft business on their premises or open small shopping outlets for visitors and community members to buy perishables and goods that meet their daily needs.

Perhaps the most attractive aspect of the development of tourism in the rural community is that the leaders and residents of the community can foster pride and establish responsibility for the process of rural development. Tourists value natural resources and the cultural heritage that are assets normally belonging to the rural poor.

It has been said that the defining feature of this administration will be that it knows where people live, understands their concerns and responds faster to their needs. With this knowledge, the tourism sector has much to gain from transforming itself and spreading the benefits of transformation with more focus placed on the implementation of programmes to attract more black entrepreneurs to entering the tourism sector and also to own and operate SMMEs throughout the sector.

To this end, it may prove helpful to match up mentors with black SMME owners to promote leisure and lifestyle entrepreneurship among the black community; to facilitate agreements with the travel trade; to incorporate black emerging entrepreneurs in their itineraries and service-provider networks and to include black-owned SMMEs in marketing campaigns.

In this regard, it is on record that the hon President Jacob Zuma has stated that the ANC government will vigorously implement broad-based economic empowerment and affirmative-action policies and adjust them to ensure that they benefit broader sections of our people, especially the workers, youth, women and people with disabilities.

Furthermore, he stated that the tourism sector has an obligation to ensure that the Tourism Black Economic Empowerment Charter successfully transforms the industry. Most importantly, to transform this industry in a meaningful way we need to invest in equipping our people with skills and knowledge to manage tourism enterprises.

We must train and develop more black managers and owners of tourism establishments to make the industry more representative of the population.

The Tourism White Paper spells out the functions of national government as facilitating the sustainable and responsible development of the industry by formulating appropriate development guidelines and regulatory measures.

The Tourism Amendment Bill therefore seeks, amongst other things, to authorise the Minister to issue codes of good practice for the tourism sector and to promote and professionalise tourist guiding.

An integrated tourist-guide registration system is being developed to fast-track the registration of guides and to provide the public and the tourism industry with any information pertaining to guiding. Tourist guiding is fast becoming an attractive career choice as guides are interacting with people from all walks of life.

It is important that tour guides adequately acquaint themselves with all cultures. The most important characteristics for any aspiring guide however, are definitely attitude, a passion for working with people and a desire and willingness to learn.

The tour-guiding sector is vast and fascinating and it includes nature guiding, culture guiding and adventure guiding. To qualify, one needs to undergo training through a service provider that is accredited to the Culture Arts, Tourism, Hospitality and Sports Education and Training Authority, Cathsseta.

In conclusion, the outcomes approach is designed to ensure that we remain focused on achieving the expected real improvements in the lives of all South Africans.

As far as tourism and its role in the outcomes approach is concerned, the ANC’s vision for the future is threefold: that it will be valued as one of the leading economic contributors to a sustainable South African economy; that it will be a dynamic, innovative and highly respected sector offering a positive and memorable experience exceeding consumer expectations; and that tourism will contribute dynamically to the improvement of the quality of life of every South African. The ANC supports the Bill. Thank you. [Applause.]

Mr K A SINCLAIR: Hon Chairperson and hon Minister, according to a recent study conducted by researchers at the Stellenbosch University, the country’s black middle-class has grown from 350 000 individuals in 1993, to almost 3 million last year.

This is a significant increase specifically contextualising the research outcome against the very critical question, and that question is: what type of a society are we, as South Africans, building? Tourism, as an essential economic driver worldwide, plays a fundamental role in this process.

The most important challenges that necessitated this legislation are: the fragmentation of tourism planning across national, provincial and local government; inadequate information; and poor integration of tourism with other economic policies and growth drivers.

The focal chapter of this piece of legislation deals with the establishment of the NTSS. This strategy includes the determination of indicators norms and standards that will be the parameters to guide responsible tourism, service excellence and the compilation and accessibility of information.

The reality is that to tap into new and alternative domestic and international tourist markets, we need a different approach to tourism. The NTSS can be that impetus to elevate South Africa’s tourism from good to great. But then, hon Minister, it cannot be business as usual. Tourism as a crucial economic driver must have its rightful place on the developmental agenda of South Africa.

Although tourism manifests itself prominently at the national level, provincial and especially local authorities are neglecting their important role. Municipalities are not doing enough to use these lucrative opportunities to create jobs, fight unemployment and create stable and sustainable communities.

Provincial and local governments, hon Minister, need to up their game. Let me give you an example. The potential of tourism-related industries next to the Gariep and Vanderkloof Dams between the Northern Cape, the Eastern Cape and the Free State has long been realised. National government, back in 2004, identified the enormous potential and launched the so-called Lake Gariep Initiative.

The Free State Business Bulletin reported on 1 September 2004, and I quote:

As such the Lake Gariep Initiative is an exemplary example in South Africa of what can be achieved through co-operative communication and synergy between various provincial governments and municipalities, between the public and private sectors, and between various population groups. This seems especially true if all sorts of hidden political agendas and selfish demands are being kept in abeyance.

Unfortunately, the reality is that 10 years later we know that very few of the plans or the R600 million that was budgeted for materialised. As we speak, the Lake Gariep Initiative remains a pipe dream.

The reasons are simple: very little political will, especially at local government level, and the tug-of-war between the various districts and local municipalities.

If this programme is implemented, it can achieve two fundamental goals. First, it will catapult the area around the Gariep and the Vanderkloof Dams to a different level resulting in enormous opportunities for economic development and growth. Secondly, however, given its centrality, it can be the hub for domestic tourism.

These attractions can be destinations that will be considered by the new middle-class. That is the type of society, hon Minister, which we sought to live in.

These respective areas are also designated to be Special Economic Zones, SEZs, in terms of new proposed legislation. Tourism must be recognised also in the SEZs as key economic role-players that will lure potential investors to these untapped and underdeveloped areas.

In conclusion, the drafting and the implementation of the NTSS will be the determining factors to unlock the potential of rural areas in South Africa. This Tourism Bill can achieve that. Cope supports the Bill and we trust that it will enhance economic growth and prosperity in South Africa. I thank you. [Interjections.][

Cllr C NEETHLING (Salga): Hon Deputy Chairperson of the NCOP, hon Minister Van Schalkwyk and hon members, on behalf of organised local government I wish to say I appreciate the opportunity to present our view concerning the Tourism Bill after a series of comments had been provided to the department through, amongst other things, an oral submission to the Portfolio Committee on Tourism and representations at provincial public hearings.

Earlier this year, specifically on 23 May, we communicated how pleased we are, as organised local government, to have witnessed the rapid growth of our tourism sector and congratulated the department on the double-digit growth achieved.

Indeed, South Africa has much that is splendid to offer the world and, to the extent that the world’s appreciation of this competitive edge is optimised accordingly, these gains continue to translate into much more significant contributions to meeting our developmental objectives.

The Bill clearly states that its objective is to provide for the development and promotion of sustainable tourism for the benefit of the Republic. Indeed, it notes that inadequate, unco-ordinated, inconsistent and fragmented tourism planning and information is the most pervasive challenge facing the development and growth of tourism in the country.

The Bill correctly advises that these challenges are best addressed through a concerted effort, by all spheres of government and the private sector working together, to create an environment that is conducive to the sustainable growth, development and transformation of tourism. We agree with this context and rationale and thus continue to use it as a point of reference for our comments.

As per the constitutional provisions, government in South Africa is broadly constituted as national, provincial and local governments. These levels of government are distinctive, interdependent and interrelated.

Each sphere of government must respect the constitutional status, powers and functions of the other spheres and each should exercise its powers and perform its functions without encroaching on the geographical, functional or institutional integrity of another sphere.

Local tourism is a function of local government as is set out in Part B, Schedule 4 of the Constitution. Furthermore, it is set out in section 154(1) that national government and provincial governments, by legislative and other measures, must support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and manage their own functions. Of course, local tourism is part of this.

However, the Bill remains silent on articulating the following specific issues of importance. Firstly, linkages with existing planning tools, such as municipal integrated developments plans and provincial growth and development strategies in the development of the NTSS, are necessary and are not covered in the expression of the NTSS norms, standards and codes of good practice in section 2 of the Bill. This is notwithstanding the fact that one of the Bill’s objectives is to enhance co-operation and co-ordination between all spheres of government in developing and managing tourism.

Secondly, the Bill remains silent on the provisions of capacity support towards local government’s contribution to the roll-out of the sector strategy, despite acute awareness of the sphere’s constraints in this regard.

Thirdly, it is important to recognise that, without deliberate and informed awareness of the differentiated nature of the spaces within which tourism takes place, the risk of not optimising the competitive edge of localities and local government contributions to meeting the objectives of the Bill, is high.

Thus we have proposed the representation of local government in the composition of the SA Tourism Board as set out in the Bill, mindful of the slow growth and stagnancy in domestic tourism.

According to the SA Tourism Domestic Indicators, domestic tourism grew by 3% in the fourth quarter of 2012, in comparison to 2011. However the tourism incidence has remained constant at 6,9% which is a significant decline in comparison to the 7,8% in 2010.

As the sphere of government that interfaces with communities most closely, local government has a comparative advantage that can contribute to robust awareness of the domestic tourism brand.

Finally, we believe that it is essential to draw lessons from past experiences. We sit with underutilised government-owned tourism infrastructure, yet the Bill is rather silent on the sustainable arrangements for the maintenance of this core driver in leveraging the domestic market.

In conclusion, hon Deputy Chair, we recognise the effort that has gone into the preparation of this Bill and are committed to working with the national Department of Tourism in meeting the objectives of the Bill and ensuring an integrated and coherent approach to service delivery.

We trust that the issues we raise here will be taken into account. We are confident that if we do so, we will move an inch closer towards realising the development vision of local government and unlocking the full potential inherent in our vast and diverse tourism sector. I thank you. [Applause.]

Mr F ADAMS: Hon Deputy Chairperson, hon Minister, hon colleagues, ladies and gentlemen and officials of the department, I see that the DA’s Big Brother is not here today and that is why they are sticking to the contents of the Bill.

What happened last week was a disgrace and showed disrespect to the NCOP. Members of the DA got a call 20 minutes before the House started. That is why they walked out when we were supposed to vote on the Bill. They walked out, disrespecting this House, because they got a call from their leader and Big Brother was sitting there watching them to see if they voted for the right thing and did the right thing.

As we know, this DA, Democratic Alliance or Devil Alliance or Dagga Alliance, whatever we can call them, has a tendency of doing an egg dance. [Laughter.] They say one thing and do another. This DA aeroplane is heading for a disastrous crash with their leader and chief pilot at the controls, Premier Helen Zille. They are a real disaster in South Africa. This plane is now nose-diving into troubled waters and it will crash on rocks on its own account and on its own accord. I heard the hon Councillor Chris Neethling saying that municipalities need to get their own right, house or their own tourism in order. Yes, that is what the national department is doing; recognising municipalities, but there is the Western Cape ...

Mr M J R DE VILLIERS: Hon Deputy Chair, on a point of order: what hon Freddie Adams is saying is not relevant to the Bill currently on the table. [Interjections.]

Mr F ADAMS: Thank you Chairperson.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Continue.

Mr F ADAMS: Chairperson, I am guided by able and competent people such as yourself — unlike the incompetent people of the DA. Thank you for your guidance.

The fact of the matter is that the DA-led government in the Western Cape is now trying to have all municipalities reporting under one umbrella structure which they have formed, Councillor Neethling, through you Chairperson, which is called Wesgro.

That is how they want to centralise and control everything and they are blaming us as the ANC-led government for centralising, which is totally wrong. Wesgro has been established as a vehicle. Almost all the other small municipalities and tourism markets in the Western Cape have closed down. They have closed down because they want to centralise and they have formed their own entity called Wesgro. They claim that Wesgro has created jobs, but it has not. Statistics can show it.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Adams, can you just hold it. Hon De Villiers and hon Gunda, someone is on the podium delivering a report. If you have anything really pressing, do me a favour, there is ample space outside, but don’t disturb the House. Continue, hon member.

Mr F ADAMS: Thank you, Chair. The world is taking note of South Africa and specifically of South African tourism. In 1994 our beloved Tata Madiba took control and became the President of a troubled state with no foreign exchange reserves, double-digit lending and inflation rates, a debt to gross domestic product, GDP ... [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Adams, can you just hold on. Hon Gunda, this is the last warning. [Laughter.] I am definitely not going to beg you. Continue, hon member.

Mr F ADAMS: What has happened since 1994? The world is taking note because everything is being done by the ANC-led government. Prior to 2009, the Department of Tourism was a hide-away department. It was coupled with the Department of Water and Environmental Affairs. It has been a stand-alone department since 2009, and this department, although some perceive it as a small department, has done tremendously well and tourism has contributed to the GDP.

Tourism has contributed to job creation. Tourism, hon Sinclair, for your information, is one of the departments that President Zuma has established and it has played its part splendidly. It is not just a spectator, but a player, and a real rough and tough player, under the leadership of hon Martinus van Schalkwyk. [Applause.]

That is the reality. Why do Cope and the DA come and stand here when they have no policies or mandate? The people have not given them a mandate. Cope’s mandate is derived from the court. So, where is their mandate? They cannot come here and talk about mandates. [Interjections.]

They can’t come here and talk about departments because they have never been in government. They have never controlled a department. Their only department which they control is ... [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hold it a bit. Hon Sinclair?

Mr K A SINCLAIR: Hon Deputy Chairperson, is the DA plane that the hon member refers to the same plane as the ANC plane, the Gupta plane? [Laughter.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): That is not a point of order, please sit down. Sit down, Mr Sinclair, sit down! [Laughter.] [Interjections.]

Mr F ADAMS: Deputy Chairperson, the only department that Cope controls is the department of seeking legal advice and advising lawyers about court dates, court dates and forever court dates. That is the only department they control.

Africa is the fastest growing emerging market in the world, overflowing with opportunities across varied sectors. The growth has given rise to the rapid development of relatively new industries that cater for a new generation of consumers coming of age in the digital world now.

If you look at the Business Day of 5 November 2013, it says, “Take pride in what we have achieved.” As the ANC, we have a very good story to tell, as has been said by our beloved hon President Jacob Zuma, and we will continue to tell that story, even if the DA tries and spins another story.

Their untruths are coming to the fore. People are seeing them behind the glass walls where they are hiding. I am not even sure if they are glass walls because it is all shattered. [Laughter.]

The hon members of the DA cannot even think for themselves because they are being controlled by Big Brother. There is a programme on TV which is called Big Brother in which every time a housemate makes a mistake, they say, “Big Brother is watching you”. That is the DA, so I think they should change their name from the DA to “Big Brother is watching you”. They should rename their party to fight this election as “Big Brother is watching you”.

What we want to say is that the Minister and his department have done tremendously well. In the space of four years they have taken the bull by the horns and put South Africa on the map. Tourism has been identified as one of the jobs ... [Interjections.] Chair, I am being intimidated by the hon Gunda. He sees that you were looking that way and then he tries his tricks, Chair.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Mr Gunda, it will be a blessing if you could just take a slow walk out, please. [Laughter.]

Mr F ADAMS: Chair, since the hon Gunda wants my attention, he is in a party that does not even exist. It is just fly-by night because they are totally gone. [Applause.] [Laughter.] They are totally gone. They do not even have principles because they have sold their principles for vanilla ice cream. They have sold their principles for ice cream so they have no principles at all.

Mr J J GUNDA: Deputy Chairperson, I would just like to find out from the hon ...

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Is it a point of order?

Mr J J GUNDA: Yes, Chair.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Then get to the point.

Mr J J GUNDA: [Inaudible.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Get to the point!

Mr J J GUNDA: Deputy Chair, on a point of order: The member says that we are in a party that does not exist. I am a member of that party and I am still here and we exist. I think it is wrong, Chair. The ID still exists. [Interjections.]

Chair, that is wrong. We still exist because if we did not exist we would not be here. If the ID does not exist, I would not be here. I would ask the member to withdraw that statement because the ID is still here. Legally the statement must be withdrawn.

Please Chair, he must withdraw. I am standing on a point of order that he says the ID has no principles and the ID does not exist. If it did not exist I would not be here.

Mr F ADAMS: Chair, I withdraw and acknowledge that the ID exists. I withdraw.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Okay.

Mr F ADAMS: The fact of the matter is that he does not know whether he is ID or DA because he follows the DA’s principles. So I would say although they exist, they are a wolf in a sheep’s skin.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Adams, please do me a favour, can you stick to your presentation — and your time is running out. [Interjections.] Hon Gunda, I never asked you for your support. [Laughter.]

Mr F ADAMS: What I want to say is that this Bill has really seen the light. It will empower South Africans.

Hierdie wetsontwerp maak seker dat daar meer oë op die toerisme mark gerig is. [This Bill will ensure that more eyes are trained on the tourism market.]

Mr F ADAMS: If we talk about the disabled people, this Bill will cater for these people. The ANC has taken South Africa to a place where it is a player in the world market and on the continent, a player to be reckoned with on this continent. The Department of Tourism, under the leadership of hon Jacob Zuma of the ANC, has really made South Africa an indicator and an economic and financial gateway.

I would like the hon Bloem, hon Sinclair and hon Gunda to get their principles and policies and stop going to courts. The ANC supports this Bill. I thank you. [Applause.]

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon Bloem, you stood up very late. The train has passed your station.

The MINISTER OF TOURISM: Chairperson, I would like to thank all hon members for their contributions and support for this Bill. I would like to thank my comrade and colleague from the North West, MEC Kgosi.

I must say, as she reported to you, we had the National Tourism Day celebrations in the North West province in the last week of September 2013. It was an exceptional event.

What impressed me about the event was the number of young people who attended, because we have the programmes in the department to create training opportunities for them. Many of our young people still do not realise the enormous potential of this sector to create jobs and provide them with a career. As a department, we are working very hard to ensure that we fully utilise that potential.

A number of colleagues raised issues and I would like briefly to respond to them. I would like to start off with the following: A number of colleagues have referred to how well we have been doing in the last few years. Yes, we have been doing exceptionally well. Last year we had just over 10% growth in international tourist arrivals as compared to the global average of around 5%. So we have been doing very well.

What we must understand, as a country, is what will be happening over the next few years, the next decade or two. We have a billion international arrivals at present. We reached that point a year-and-a-half ago. By 2030, we will have 1,8 billion. That means an increase of 800 million over the next 16 years and we must make sure that we get our fair share of that growth.

As my colleagues on the committee know very well, historically we have relied on our traditional markets, Europe and the UK. For many years to come we will still rely on these markets and the per capita spending from the tourists of these markets will still be higher than those from our new markets.

However, I would like to tell you one thing: Over the next few years, you will still see Americans and Europeans visiting South Africa. And they are most welcome; they will always be welcome. You will see many more people from India, China, Asian countries and also from our own continent.

I know that there were some colleagues who were upset about an issue and they raised it with me — it was not in our department, but department. The fact is that our national airline, SAA, cancelled the direct, nonstop flight between here and Argentina. It did so because like all airlines, it has to decide which routes are profitable and which ones are not. That is an ongoing process.

However, this morning they announced a number of new routes into the African continent. I would like to say, hon colleagues, that when we decide not to fly an international route other airlines start flying that route; and that is good. We just want tourists here, irrespective of how they got here.

However, it is very important that our national airline unlock the potential on the African continent for us. We have enormous growth potential in countries like Nigeria, Kenya, Ghana, Angola and many others.

I know that the popular image of Africa is one of a continent of poverty. Yes, there is a lot of poverty, but there are tens of millions of people who can afford to be tourists and spend money. We want those people to come to South Africa, and not only go to Europe. They should be tourists here and spend their money here.

Speaking on just that trend, which is also important for us as a country, let me say that only two years from now, in 2015, for first time ever in the history, there will be more inbound tourism to the developing countries than to the developed countries. That is very important because when we are not in the room, when the developed countries talk about tourism, they talk about us. They just see us as markets. Well, we are very important markets, but we must never forget that we are also destinations.

In two years time there will be more visitors to our countries – the developing countries — than to the developed countries. We must understand the enormous potential that this holds for us. The inter-movement between Brazil, Russia, India, China and South Africa, Brics, is rising by more than 30% at the moment. So we must also ensure that we build on the political relationship that we now have with the Brics countries and give an economic and tourism content to that relationship.

As a number of colleagues have said, this legislation describes the institutional architecture. Colleagues made reference to Sat and to the grading council. I would like briefly to say something about that. South African Tourism is our implementing agency. They are marketing the country and are doing excellent work.

This is a partnership between government and the private sector because the people whom we appoint to serve on the board are leaders who command respect in the tourism industry. They come to serve on that board. We give them a mandate and every year we have a discussion with them at which I sign off the letter of mandate and they go and do their job.

We give them a budget, and last year it was around R800 million, to market the country. In my view, that is one of the best examples of a partnership between government and the private sector. They bring in the best leadership, best ideas and management skills. We bring in what we have and we work together for the sake of the country.

I must say I appreciate the support from all political parties for the legislation; because if we talk about tourism and marketing the country, be it for trade, tourism or whatever, then there are no political differences between us. We all agree and pull in the same direction. When we create jobs, we create them for the DA, ANC, Cope and whoever. That is what we should do in the country.

In that regard, I would like to commend three provinces: Gauteng — hon member, if you could report back on this to your legislature — KwaZulu-Natal and the Western Cape, for sorting out the problem of co-operation between different spheres of government. [Applause.]

I am referring to the turf battles we had between the metros and the provinces. Here in Western Cape they have now sorted it out between Cape Town and the provinces. No matter which party is in government, it is always a problem. Let us be honest about it. They have sorted that out.

I would really like to thank Gauteng for sorting that out over the past year. In KwaZulu-Natal they have did it a little bit earlier. That will help us not to overlap and waste resources, and it will help all of us to pull in the same direction – metros, provinces, and also national.

Let me say something about the grading council. Three colleagues referred to the grading council. In the legislation there is specific reference to its role, the composition of the board, its functions, etc; and here is a challenge for us

These grading councils, all over the world, are still important because it is about the quality assurance of our products - people must know that they can trust that star. Whether it is a three-stars or five-stars rating, people must know that it is really worth three stars or five stars. This is very important.

There is something else that we must take cognisance of and that is the rise of private-sector measurements. TripAdvisor is a very good example. I could see that most of you were on your cell phones and iPads during the debate and you know what TripAdvisor is.

People go to hotels, they stay there and when they leave they give their ratings on TripAdvisor on the internet. Many people are starting to say that we should not underestimate this because it is really first-hand grading.

Our grading council decided to start co-operating with TripAdvisor to see how we can bring all of that expertise on board. That will benefit our industry because we understand the value of that kind of grading or measurement by people who have experienced the product.

Then in terms of our sector, some people refer to the economic contribution. I thought I should just add the following: Yes, we contribute to the GDP - directly and indirectly, more or less 9%. This is the fastest-growing sector of our economy at the moment and we should understand the potential of that.

Just in terms of the labour force, of job creation, our country is known as a mining country; and yes, we are. Mining is a very important economic activity and that will continue to be the case for a long time.

In terms of the number of jobs, however, our sector contributes more than mining. We contribute 4,5% to the labour force in this country so we are a major provider of jobs, and have the potential to do even better.

Somebody raised the issue of underutilisation; I think it was the representative from the SA Local Government Association, Salga. His was a very good contribution. Thank you, because you touched on a number of issues we would like to deal with. You have given praise and been very complimentary, and we appreciate that. However, on a number of those issues, I think we should actually improve the co-operation between us.

You referred to an audit of state facilities. The Industrial Development Co-operation, IDC, has just briefed me about two or three weeks ago that they have almost completed what we asked them to do in co-operation with our department, namely an audit of all state facilities.

There are many empty buildings, empty police colleges, empty defence force bases, empty this, empty that, where we can bring in the private sector to unlock their value. In this way we can also provide an income for people, who are in the lower-income category, to also be tourists in our country. We shall keep updating you because I believe that has massive potential.

When thinking about the tourists, we should not always think about people with a net income of R15 000 and over per month. There are people with around R5 000 and over and if we package the product right, we can actually also turn them into tourists.

Before concluding, the last issue that I would like to refer to is that of travelling centres. Hon member Abrahams referred to a card. Well, Chair, there are already many of these schemes in operation. The SANParks have the Wild Card for the loyal members, and it gives them a discount. It works extremely well. It is providing opportunities for people, who never had any before, to visit our national parks at an affordable level.

South African Tourism, as part of the domestic tourism campaign, Sho’t Left, also announced a number of affordable packages. Colleagues can visit the website and they will see all the packages offered at a very affordable price in partnership with some of our airlines, tour operators and hotel groups. This makes it possible for our people to become tourists.

In conclusion, I would like to say thank you once again to the chairperson and his committee. This legislation was in the making for quite a long time.

We understand that there are strong feelings about some of the aspects covered in the legislation. We started off with very heated debates in the NA and in this Council and we ended up with a product that has a large degree of consensus. I would really like to thank all of you for that. [Applause.]

Debate concluded.

Question put: That the Bill be agreed to.

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

ABSTAIN: Mpumalanga and Western Cape.

Mr M J R DE VILLIERS: The support staff here can see we are in favour.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Do you have a mandate?

Mr M J R DE VILLIERS: Excuse me, Deputy Chair?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Do you have a mandate?

Mr M J R DE VILLIERS: That’s right, we have a mandate.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Are you abstaining?

Mr M J R DE VILLIERS: No, Deputy Chair, we are in favour. [Interjections.] Is something wrong?

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Yes. May I read it out?

Mr D D GAMEDE: Deputy Chair, I was just saying that in terms of the procedure in our meeting, for us to reconcile this properly, seven provinces voted in favour and two have not indicated what their position is.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): That’s the final decision we have to take because the date on the letter for Western Cape’s mandate is 24 July 2013.

An HON MEMBER: That is wrong.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Therefore, seven provinces have voted in favour. [Interjections.] Hon Bloem, is it a point of order?

Mr D V BLOEM: Yes, Deputy Chairperson. My point of order is that I’m really getting confused now just as the Western Cape is confused. I don’t know what is going on. Now Mpumalanga has also followed them. [Laughter.] Now Mpumalanga is also confused. I don’t know what is going on.

Ms M G BOROTO: Hon Chairperson, I have to make it clear here. We can’t be compared to the Western Cape. Our problem is that the mandate is not well written. There is a problem with the number of the Bill, and therefore we have to vote like this because we don’t want to make a mistake. [Interjections.]

It is a technical fault, however the mandate says we must vote in favour. We are saying we can’t do that because we know the Rules of Parliament. Thank you.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): That’s integrity my girl. Thanks.

Mr M J R DE VILLIERS: Hon Chairperson, if any member here knows what the mandate from the Western Cape is, they must come up with it. My answer here, as the head, is that I must vote in favour. Luckily, the hon Bloem is referring to the Western Cape province and not the other side. So, it is actually the Western Cape province which is “deurmekaar”. [Confused.] Thank you very much.

The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon De Villiers, the final decision is anyway that seven provinces have voted in favour. I therefore, declare this Bill passed. [Applause.]

Bill accordingly agreed to in accordance with section 65 of the Constitution.

SECTIONAL TITLES AMENDMENT BILL

(Consideration of Bill and of Report thereon)

Mr A J NYAMBI: Chairperson, I want a confirmation whether it’s true that the confusion that is said to be prevailing in Mpumalanga was caused by the hon Bloem’s visit to Waterval Boven last week. [Laughter]

The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr R J Tau): Hon Bloem, may I make ruling on the matter. That is not a point of order therefore let us proceed.

Mr D V BLOEM: Chair, on a point of order:

The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr R J Tau): What is the point of order? It is not related to my ruling, is it?

Mr D V BLOEM: It’s not; it is something else. Mpumalanga is not stinking like the Western Cape. That is the difference.

The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr R J Tau): Hon Bloem, may I request you to withdraw the word “stinking” because I don’t think it is parliamentary to use such a word.

Mr D V BLOEM: Well, I can change the word to “smelling”. [Applause]

Mrs A N D QIKANI: House Chairperson, hon members, the main objective of the Bill is as follows, and I quote:

To amend the Sectional Titles Act, Act No 95 of 1986, in order to, amongst others; amend certain definitions; to further regulate notification of the intended establishment of schemes and the sale of units to lessees; to provide for the cancellation of registered sectional plans in a prescribed manner; to regulate the issuing of certificates of registered sectional title in respect of a fraction of an undivided share in a section; to provide for the deletion of an obsolete reference; to provide for the registration of a transfer of a part of a common property with the consent of the owners of the sections and the holders of the registered real rights; to provide for the endorsing of title deeds to reflect amended participation quota schedules; to regulate the alienation of a portion of land over which a real right of extension or part thereof is registered; to provide for the consent of holders of registered real rights over exclusive use areas to the alienation of common property; to provide for the cession of mortgage real right of extension and the mortgage real right of exclusive use area; to provide for the cancellation of part of a section pursuant for the expropriation; to further provide for the consent of bondholders with registration of a sectional plan of extension; to provide for the issuing of more than one certificate of real right of extension and more than one certificate of exclusive use area.

The Bill was referred to the committee on 19 September 2013. The Department of Rural Development and Land Reform briefed the committee on 8 October 2013, on the Sectional Titles Amendment Bill, B 11B 2013.

After conducting public hearings in all provinces, the committee held a negotiating mandate meeting on 5 November 2013. Eight negotiating mandates were received whilst Limpopo requested an extension of the legislative cycle. Seven provinces supported the Bill and Free State supported the Bill with one amendment.

After deliberating on the amendment, the committee unanimously rejected the proposed amendment. The final mandate meeting was held on 12 November 2013, and eight final mandates were received whilst Limpopo did not submit a mandate. All eight provinces supported the Bill.

The Select Committee on Land and Environmental Affairs has deliberated on and considered the subject of the Sectional Titles Amendment Bill, B 11B 2013, referred to it and classified by the Joint Tagging Mechanism, JTM, as a section 76 Bill and agrees to the Bill without amendments. Thank you.

Debate concluded.

Question put: That the Bill be agreed to.

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

Bill accordingly agreed to in accordance with section 65 of the Constitution.

ADJUSTMENTS APPROPRIATION BILL

(Consideration of Votes and Schedule)

Mr T E CHAANE: Chair, the committee considered the 2013 Adjustments Appropriation Bill as presented by the Minister in terms of section 30(2) of the Public Finance Management Act, Act 1 of 1999 and section 12(1) of the Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009 respectively.

The purpose of the Bill is to effect adjustments to the appropriation of the money from the National Revenue Fund for the requirements of the state in respect of the 2013-14 financial year. The Bill shows that the total level of spending decreased by R5,7 million from the budgeted R1,055 billion to a revised R1,049 billion.

The R5,7 million downward adjustments will lead to a reduction of funds from the national government allocations, part of which will be reallocated to other spheres. An amount of R1,364 million will be allocated to provincial government and R13,223 million to the local government respectively.

The adjustments budget makes provision for an additional R5,484 billion in allocation for the 2013-14 financial year as follows: rollovers, R894,0 million; unforeseeable and unavoidable expenditure, R558,9 million; salary adjustments, R2,2 million; self-financing expenditure, R507,7 million; funds as announced by the Minister in the 2012 Budget Speech, R488,6 million; and state debt costs, at R743 million.

The Adjustments Appropriations Bill further shows that a contingency reserve of R4 billion was set aside in the main Budget as well as an allocated amount of R30 million. Unspent funds in the amount of R3,033 billion have been declared.

A repayment of R500 million is to be made into the National Revenue Fund. Skills levies and expenditure by the Sector Education and Training Authorities, Setas, are projected to decrease by R103 million.

Over and above this, budget spending projection also indicates a possible R3,5 billion in underspending. If this projection is fully realised the revised total level of spending would be R1 049,393 billion, representing a decrease of R5,681 billion in aggregate from the budget spending estimate of R1 055,075 billion as indicated above.

Some of the unforeseeable and unavoidable expenditure covered in the adjustment budget includes repayment of infrastructure damaged by floods; a gratuity for nonreturning local government councillors; as well as for substance abuse prevention.

The Select Committee on Appropriations, having considered the Adjustments Appropriation Bill referred to it and classified by the Joint Tagging Mechanism as section 77 Bill, reports that it has agreed to the Bill without amendments. I thank you, Chair.

SECTIONAL TITLES AMENDMENT BILL

(Decision of Limpopo voting mandate for voting on Bill)

The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr R J Tau): Order, hon members, I am reliably informed that insofar as the records of the NCOP are concerned with regard to the vote on the Third Order, Limpopo did not submit their voting mandate.

Therefore in the absence of Limopopo’s voting mandate we then revert back to the Third Order and declare that eight provinces instead of nine voted in favour of the Bill. But still, the majority of the provinces having voted in the favour of the Bill and I therefore declare the Bill as having been agreed to in terms of section 65 of the Constitution.

Hon members, we shall now proceed with the voting on the schedules as printed on the Order Paper.

Vote No 1 – Presidency – put.

Division demanded.

The Council divided:

AYES - 32: Adams, F; Boroto, MG; Chaane, TE; de Beer CJ; Dikgale, MC; Dodovu, TSC Faku, ZC; Gamede, DD; Jacobs, MP; Magadla, NW; Makgate, MW; Makunyane, TL; Mashile, BL; Matila, AG; Memela, TC; Mgcina, M; Mncube, BV; Mnguni, BA; Mofokeng, TMH; Montsitsi, SD; Mokgobi, MH; Mokgoro, GG; Moshodi, ML; Ntwanambi, ND; Nyambi, AJ; Nzimande, LPM; Qikani, AND; Sibande, MP; Rantho, DZ; Rasmeni, RN; Themba, MP, Xhanti, NT.

NOES - 11: Abrahams, LB; Bloem, DV; Bekker, JMG; de Villiers, MJR; Groenewald, HB; Gunda, JJ; Lees, RA; Makhubela, MW; Manzini, VM; Sinclair, KA; Worth, DA.

Vote agreed to (Congress of the People; Democratic Alliance and Independent Democrats dissenting).

Vote No 1 – Presidency.

The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr R J Tau): There were 36 in favour and 11 against. Therefore the majority of members have voted in favour.

Mr D V BLOEM: They are not against, they objected. That is the correct word.

The HOUSE CHAIRPERSON: COMMITTEES AND OVERSIGHT (Mr R J Tau): The majority of members voted against and I therefore ... [Interjections.] No I wanted to check whether you are awake; the schedule is very long and we cannot afford to have members sleeping. Therefore, 36 members voted in favour and 11 voted against, I therefore declare the vote as agreed to. [Applause.]

Vote No 2 - Parliament – put and agreed to.

Vote No 3 – Co-operative Governance and Traditional Affairs – put and agreed to.

Vote No 4 – Home Affairs – put and agreed to.

Vote No 5 – International Relations and Co-operation – put and agreed to.

Vote No 6 – Performance Monitoring and Evaluation – put and agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 7 – Public Works – put.

Division demanded.

The Council divided:

AYES - 35: Adams, F; Bloem, DV; Boroto, MG; Chaane, TE; de Beer CJ; Dikgale, MC; Dodovu, TSC Faku, ZC; Gamede, DD; Jacobs, MP; Magadla, NW; Makgate, MW; Makhubela, MW; Makunyane, TL; Mashile, BL; Matila, AG; Memela, TC; Mgcina, M; Mncube, BV; Mnguni, BA; Mofokeng, TMH; Montsitsi, SD; Mokgobi, MH; Mokgoro, GG; Moshodi, ML; Ntwanambi, ND; Nyambi, AJ; Nzimande, LPM; Qikani, AND; Sibande, MP; Sinclair, KA; Rantho, DZ; Rasmeni, RN; Themba, MP, Xhanti, NT.

NOES - 8: Abrahams, LB; Bekker, JMG; de Villiers, MJR; Groenewald, HB; Gunda, JJ; Lees, RA; Manzini, VM; Worth, DA.

Vote agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 8 – Women, Children and People with Disabilities – put.

Division demanded.

The Council divided:

AYES - 35: Adams, F; Bloem, DV; Boroto, MG; Chaane, TE; de Beer CJ; Dikgale, MC; Dodovu, TSC; Faku, ZC; Gamede, DD; Jacobs, MP; Magadla, NW; Makgate, MW; Makhubela, MW; Makunyane, TL; Mashile, BL; Matila, AG; Memela, TC; Mgcina, M; Mncube, BV; Mnguni, BA; Mofokeng, TMH; Montsitsi, SD; Mokgobi, MH; Mokgoro, GG; Moshodi, ML; Ntwanambi, ND; Nyambi, AJ; Nzimande, LPM; Qikani, AND; Sibande, MP; Sinclair, KA; Rantho, DZ; Rasmeni, RN; Themba, MP; Xhanti, NT.

NOES - 8: Abrahams, LB; Bekker, JMG; de Villiers, MJR; Groenewald, HB; Gunda, JJ; Lees, RA; Manzini, VM; Worth, DA.

Vote agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 9 – Government Communications and Information System – put and greed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 10 – National Treasury – put and agreed to.

Vote No 11 – Public Enterprises – put and agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 12 – Public Service and Administration – put and agreed to.

Vote No 13 – Statistics South Africa – put and agreed to.

Vote No 14 – Arts and Culture – put and agreed to.

Vote No 15 – Basic Education – put and agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 16 – Health – put and agreed to.

Vote No 17 – Higher Education and Training – put and agreed to.

Vote No 18 – Labour – put.

Division demanded.

The Council divided:

NOES - 8: Abrahams, LB; Bekker, JMG; de Villiers, MJR; Groenewald, HB; Gunda, JJ; Lees, RA; Manzini, VM; Worth, DA.

Vote agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 19 – Social Development put and agreed to.

Vote No 20 – Sport and Recreation South Africa – put and agreed to.

Vote No 21 – Correctional Services – put and agreed to

Vote No 22 – Defence and Military Veterans – put

Division demanded.

The Council divided:

NOES - 8: Abrahams, LB; Bekker, JMG; de Villiers, MJR; Groenewald, HB; Gunda, JJ; Lees, RA; Manzini, VM; Worth, DA.

Vote agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 23 – Independent Police Investigative Directorate – put and agreed to.

Vote No 24 – Justice and Constitutional Development – put and agreed to.

Vote No 25 – Police – put and agreed to.

Vote No 26 – Agriculture, Forestry and Fisheries – put.

Division demanded.

The Council divided:

NOES - 8: Abrahams, LB; Bekker, JMG; de Villiers, MJR; Groenewald, HB; Gunda, JJ; Lees, RA; Manzini, VM; Worth, DA.

Vote agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 27 – Communications – put and agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 28 – Economic Development – put and agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 29 – Energy – put and agreed to.

Vote No 30 – Environmental Affairs – put and agreed to.

Vote No 31 – Human Settlements – put and agreed to.

Vote No 32 – Mineral Resources – put and agreed to.

Vote No 33 – Rural Development and Land Reform – put.

Division demanded.

The Council divided:

NOES - 8: Abrahams, LB; Bekker, JMG; de Villiers, MJR; Groenewald, HB; Gunda, JJ; Lees, RA; Manzini, VM; Worth, DA.

Vote agreed to (Democratic Alliance and Independent Democrats dissenting).

Vote No 34 – Science and Technology – put and agreed to.

Vote No 35 – Tourism – put and agreed to.

Vote No 36 – Trade and Industry – put and agreed to.

Vote No 37 – Transport – put and agreed to (Democratic Alliance and the Independent Democrats dissenting).

Vote No 38 – Water Affairs – put and agreed to.

Schedule put and agreed to.

CONSIDERATION OF ADJUSTMENTS APPROPRIATION BILL AND OF REPORT OF SELECT COMMITTEE ON APPROPRIATIONS

The HOUSE CHAIRPERSON (Mr R J Tau): Hon members would note that when we were reading the fourth order, there was a link with the fifth order, where we had hon Chaane leading us in that debate. I take it that he has done so and the debate is concluded.

Debate concluded.

Question put: That the Bill be agreed to.

Bill agreed to in accordance with section 75 of Constitution.

The HOUSE CHAIRPERSON (Mr R J Tau): Hon members, before I conclude the business of the day, may I advise hon members that the last day to submit questions for written reply for this year will be Tuesday, 19 November 2013, before 12 o’clock.

The Council adjourned at 16:25.

__________

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

WEDNESDAY, 13 NOVEMBER 2013

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Classification of Bills by Joint Tagging Mechanism (JTM)

The JTM in terms of Joint Rule 160(6) classified the following Bills as section 75 Bills:

Customs Control Bill [B 45 – 2013] (National Assembly – sec 75).

Judicial Matters Second Amendment Bill [B 51 – 2013] (National Assembly – sec 75).

The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 76 Bill:

Judicial Matters Third Amendment Bill [B 53 – 2013] (National Assembly – sec 76).

National Council of Provinces

The Chairperson

1. Message from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council

Bills passed by National Assembly and transmitted for concurrence on 13 November 2013:

South African Human Rights Commission Bill [B 5B – 2013] (National Assembly – sec 75).

The Bill has been referred to the Select Committee on Security and Constitutional Development of the National Council of Provinces.

South African Post Office SOC Ltd Amendment Bill [B 24B – 2013] (National Assembly – sec 75).

The Bill has been referred to the Select Committee on Labour and Public Enterprises of the National Council of Provinces.

Judicial Matters Amendment Bill [B 7D – 2013] (National Assembly – sec 75).

The Bill has been referred to the Select Committee on Security and Constitutional Development of the National Council of Provinces.

Judicial Matters Second Amendment Bill [B 51 – 2013] (National Assembly – sec 75).

The Bill has been referred to the Select Committee on Security and Constitutional Development of the National Council of Provinces.

Judicial Matters Third Amendment Bill [B 53 – 2013] (National Assembly – sec 76).

The Bill has been referred to the Select Committee on Security and Constitutional Development of the National Council of Provinces.

Correction (incorrect bill number in ATC of 12 November 2013):

Legal Practice Bill [B 20B – 2012] (National Assembly – sec 76).

The Bill has been referred to the Select Committee on Security and Constitutional Development of the National Council of Provinces.

2. Referral to Committees of papers tabled

(1) The following papers are referred to the Select Committee on Land and Environmental Affairs for consideration and report:

Annex V1 to the Protocol on Environmental Protection to the Antarctic Treaty – Liability arising from Environmental Emergencies, tabled in terms of section 231(2) of the Constitution, 1996.

Explanatory Memorandum to Annex V1 to the Protocol on Environmental Protection to the Antarctic Treaty – Liability arising from Environmental Emergencies.

TABLINGS

National Assembly and National Council of Provinces

1. The Speaker and the Chairperson

(a) Report of the Auditor-General: Consolidated General Report on National and Provincial Audit Outcomes for 2012-13 [RP 322-2013].

(b) Special Report of the Joint Standing Committee on Intelligence (JSCI) – Report on the Prestige Project A: Security Measures at the President’s Private residence: Nkandla.

CREDA PLEASE INSERT T131113e-insert1 – PAGES 5839-5874

COMMITTEE REPORTS

National Council of Provinces

1. REPORT OF THE SELECT COMMITTEE ON APPROPRIATIONS ON THE PROPOSED DIVISION OF REVENUE AND THE CONDITIONAL GRANT ALLOCATIONS TO PROVINCIAL AND LOCAL SPHERES OF GOVERNMENT AS CONTAINED IN THE 2013 MEDIUM TERM BUDGET POLICY STATEMENT, DATED 13 NOVEMBER 2013

In compliance with Section 6(10) of the Money Bills Amendment Procedure and Related Matters Act 9 of 2009, the Select Committee on Appropriations, having considered the 2013 Medium Term Budget Policy Statement and having heard comments from stakeholders, reports as follows:

1. Introduction

The Minister of Finance (the Minister) tabled the Medium Term Budget Policy Statement (MTBPS) on 23 October 2013, outlining the budget priorities of government for the medium term estimates. The MTBPS was tabled together with the Division of Revenue Amendment Bill [B38– 2013] and the Adjustments Appropriation Bill [B37 – 2013]. In terms of the Money Bills Amendment Procedure and Related Matters Act No 9 of 2009 (herein referred to as “the Act”), committees on appropriations are required to consider and report on the proposed division of revenue and conditional grant allocations to provinces and local government as contained in the MTBPS. The report of the Select Committee on Appropriations as per Section 6(10) of the Act must contain the following; as referred to it in terms of Section 6(8):

The spending priorities of national government for the next three years;
The proposed division of revenue between the different spheres of government and between arms of government within a sphere for the next three years; and
The proposed substantial adjustments to conditional grants to provinces and local government, if any.

2. Medium Term Spending Priorities

Government prioritises its resources in the following areas:

Expanding electricity, transport and communications capacity;
Enhancing the quality of education;
Improving the provision of quality health care;
Promoting industrial competitiveness and job creation;
Addressing challenges in mining and community development ;
Supporting growth of our cities and special economic zones;
Broadening rural development and expanding agricultural opportunities; and
Strengthening public service delivery while combating waste and corruption.

The proposed allocation of resources over the next three years was informed by government’s strategic priorities, in particular the National Development Plan (NDP). It sets a broad framework for inclusive growth based on a more competitive economy, a capable developmental state, and improved livelihoods of South Africans. Implementing the plan will require government to strengthen its role as an enabler of economic development and improve the ways in which policies are translated into service delivery.

3. The proposed division of revenue

The proposed division of revenue for the 2014 Budget provides for consolidated government spending of R1.24 trillion in the 2014/15 financial year, R1.34 trillion in 2015/16 and R1.44 trillion in the 2016/17 financial year. The proposed budget framework allows for average nominal growth in the main budget spending of 8.0 percent per year over the next three years. It includes a contingency reserve of R27 billion (R3 billion, R6 billion and R18 billion for 2014/15, 2015/16 and 2016/17, respectively) for unforeseen and unavoidable requirements. The contingency reserve has been reduced by R7.5 billion over the next two years to respond to spending pressures. Debt-service costs will rise at an average annual rate of 10.4 percent, from R100.5 billion in the 2013/14 financial year to R135.4 billion in the 2016/17 financial year. The spending pressures amounting to R21.6 billion over the next three years are accommodated through reprioritisation of R8.1 billion within departmental allocations and a drawdown of R13.5 billion on the contingency reserve.

The national and provincial public sector salaries will be linked to inflation, which is forecast to be higher than previously projected at the beginning of the 2013/14 financial year. Over the next three years, the cost of inflation adjustments will be R12.2 billion, and R5.2 billion will also be required to upgrade the salary levels of clerks in the public service.

In addition to direct transfers in the form of equitable share and conditional grants, the proposed division of revenue outlines benefits that the provinces and municipalities will get from indirect grants. These are allocations that national departments spend on behalf of provinces and municipalities. Indirect grants contribute to core spending areas for which sub-national government is responsible, including infrastructure such as schools and bulk water pipelines. Government proposes significant growth in the value of indirect grants to provinces and municipalities, from R8.4 billion in 2013/14 to R14.3 billion in the 2016/17 financial year. Changes to the way these grants are managed will be considered over the period ahead, and amounts may be shifted between direct and indirect grants before the 2014 Budget is tabled.

The proposed provincial government funding

Over the next three years, provincial allocations will grow from R444.7 billion in the 2014/15 financial year, to R478.2 billion in the 2015/16 financial year and R507.8 billion in the 2016/17 financial year. Over the same period, the provincial baseline allocations increase by a net R11.2 billion. This increase will be funded through drawdowns on the contingency reserve and a reallocation of national resources. The proposed changes to provincial allocations are driven by higher wage costs for the 900 000 public servants employed in the health and education sector, as well as by priorities in infrastructure and social services.

An occupation-specific dispensation for several categories of therapists in the education sector will be funded through a new conditional grant for two years, after which these funds will be incorporated into the provincial equitable share. Additions to the provincial equitable share of R2.5 billion in 2014/15, R4.3 billion in 2015/16 and R5.1 billion in the 2016/17 financial year will help fund rising wage costs, shelters for victims of abuse, as well as the roll-out of a new vaccine for the human papilloma virus.

4.1 The proposed conditional grant allocation to provinces

Government provides provinces with conditional grants to supplement the equitable share for specific programmes. The conditional grant allocation to provinces will be R82.3 billion in the 2014/15 financial year, R90.2 billion in the 2015/16 financial year and R95.8 billion in the 2016/17 financial year. The proposed division of revenue presents some reductions to underperforming conditional grants. These reductions to a number of grants will release funds for reprioritisation, though their allocations still grow in nominal terms over the spending period. Changes to be effected on the provincial conditional grants include the following:

Small reductions on the Comprehensive Agricultural Support Programme Grant, the Land Care Grant, the Education Infrastructure Grant, the School Infrastructure Backlogs Grant (an indirect grant), the National Health Grant (an indirect grant) and the Expanded Public Works Programme Grant to Provinces.
New allocations to the Human Settlements Development Grant to fast-track the upgrading of informal settlements in mining towns that are experiencing rapid growth.
Additional resources for the Further Education and Training Colleges Grant to cover higher-than-anticipated salaries.
Funds will be made available through the Public Transport Operations Grant to offset the rising costs of fuel and labour in provincial bus services.

4.2 The proposed local government funding and conditional grants

The proposed allocation to local government is expected to increase from R81.9 billion in the 2014/15 financial year to R101.4 billion in the 2015/16 financial year and to R106.7 billion in the 2016/17 financial year. Changes to the local government allocations shift funds towards areas that can support economic growth.

Government provides municipalities with conditional grants to supplement the equitable share for specific programmes. The Integrated City Development Grant (ICDG) provides funds to assist the eight metropolitan municipalities in their planning. It is intended to help low-income households on the urban periphery access jobs and other opportunities. An amount of R356 million will be added to the ICDG to encourage the evolution of more compact and efficient cities. The Regional Bulk Infrastructure Grant (an indirect grant) will receive an additional R934 million over the MTEF period to accelerate bulk water projects that will support broader development.

To fund these priorities and stay within the spending ceiling, government proposes moderate reductions to a number of conditional grants, including the Municipal Infrastructure Grant, the Urban Settlements Development Grant, the Expanded Public Works Programme Integrated Grant for Municipalities, the Infrastructure Skills Development Grant and the Energy Efficiency Demand-Side Management Grant.

Government has announced that by 2014 the responsibility for the housing function will be devolved from provincial to local government in six metropolitan areas: Cape Town, Ekurhuleni, eThekwini, Johannesburg, Nelson Mandela Bay and Tshwane. These municipalities will receive a total of R900 million over the MTEF to build capacity for this function.

Government has also begun a review of local government infrastructure grants, this may result in changes to the number and structure of these grants. The review is a collaborative effort involving national departments, the Financial and Fiscal Commission and the South African Local Government Association. This review will further ensure the extensive involvement and consultation with municipalities, provinces, professional associations and public entities. Proposals for changes to the grant system may be included in the 2014 Medium Term Budget Policy Statement.

A new local government equitable share formula was being phased in from the 2013/14 financial year. The formula provides funding for a package of free basic services for 59 percent of households with monthly incomes below the value of two state old age grants. The local government equitable share will grow at an average annual rate of 9.2 percent over the MTEF.

5. Submissions by stakeholders

5.1 Financial and Fiscal Commission

The Financial and Fiscal Commission made its submission on the 2013 Medium Term Budget Policy Statement in terms Section 4(4)(c) of the Money Bills Amendment Procedure and Related Matters Act, No 9 of 2006, which requires committees of Parliament to consider recommendations by the Commission when dealing with money bills and related matters.

5.1.1 Background

The Commission was of the view that, overall, government had done a commendable job through the MTBPS in signalling its intent and commitment to implement the National Development Plan (NDP). The Commission felt that an ambitious policy strategy for growth was a pre-requisite if South Africa is to move further on the transition to attaining the 2030 Vision. The Commission further noted that government was looking towards infrastructural investment as the principal driver of whatever upturns if economic growth was anticipated. The corollary to the relatively high growth in gross fixed capital formation forecast by government was that the current account deficit was forecast to remain at levels above 6 percent of Gross Domestic Product (GDP).

5.1.2 Macro-economic and fiscal outlook

The Commission submitted that the economy remained vulnerable to slow global recovery and domestic factors such as the recent labour unrest. GDP growth has been revised downwards to 2.1 percent for this year, from 2.7 percent at the time of the 2013 Budget in February, and to 3 percent for next year, from 3.5 percent in February 2013. The budgeted growth for 2015 was now forecast to be just 3.2 percent, from 3.8 percent in the February budget. These downward projections confirmed the Commission’s projections done in 2009.

The Commission noted that government’s position on fiscal consolidation was in line with the Commission’s submission on the 2014/15 Division of Revenue. The Commission felt that it was important to balance the financing needs to implement the NDP with the goal of budget consolidation. In this regard, the Commission noted that real non-interest expenditure was budgeted to grow by just 2.2 percent per year over the next three years. The thrust of fiscal discipline was centred on a significant reduction in the growth of compensation of public sector employees. The largest area of expenditure growth was unemployment and social security, at 13.8 percent. The Commission supported the growth in social security expenditure, which was in line with its previous recommendations.

5.1.3 Risks to economic and fiscal outlook

(a) Public sector wage bill pressures

The Commission welcomed the firmer stance taken by government in enforcing discipline in the hiring of new employees and to maintain staff levels over the medium term. However, the Commission emphasised that government productivity and service delivery should remain the core of recruitment policy. In this regard, the appointment of frontline staff core to service delivery should be prioritised over the filling of general, administrative positions.

(b) Persistent under-spending

The Commission was concerned that the three spheres of government under-spent by R3.14 billion in the 2012/13 financial year. Continued under-spending could jeopardise the attainment of short and long term priorities, especially since under-spending tended to be on capital spending, undermining the infrastructure-led growth strategy.

(c) Negative external balance

The Commission submitted that South Africa remained a net importer of goods and services. The current account deficit was projected at 6.5 percent of GDP in 2013; 6.4 percent in 2014; 6.2 percent in 2015 and 6.1 percent in 2016. In this regard, the Commission supported the increased diversification of South Africa’s trading partners with more focus on emerging economies such as China and India.

(d) Robustness of global growth and domestic responses

The MTBPS projections are based on a rebounding American economy, as the state of the global economy was an important determining factor for the local fiscal position.

5.1.4 Domestic challenges

(a) Infrastructure

Investment in economic infrastructure was pivotal to fostering private investment and increasing and sustaining the long term growth capacity of the economy. However, the inadequacy of existing infrastructure, particularly port facilities, roads, rail, energy, water and sanitation, hampered the country’s long run growth potential. Poor performance in infrastructure development and asset care was a challenge across all three spheres of government. The Commission was of the view that the President’s Infrastructure Coordinating Committee (PICC) which was established to fast-track infrastructure development should assume the leadership in determining the appropriate implementation mechanisms to ensure rapid roll-out of infrastructure. In this regard, the enabling legislation for PICC should be fast-tracked so that it can become fully operational.

(b) Mobilising finances

The buoyancy of tax revenues was of concern to the Commission, particularly in the current depressed economic environment. The tax revenues to GDP ratio indicated a progressive decline in the buoyancy ratio. The Commission looked forward to engaging on the issues with the Tax Review Committee set up by government.

(c) Human capacity

The Commission submitted that structural unemployment, skills constraints and a workforce impacted by poor health standards were serious problems in the country. South Africa fared poorly on many human capital indicators. The MTBPS prioritised spending on education and health. The Commission felt it was important that such resources were used effectively and efficiently to ensure that education and health outcomes were improved and/or realised.

(d) Governance issues

The Commission reported that South Africa fared poorly relative to numerous other countries on the issue of corruption and general inefficient or unproductive government spending. The Commission noted progress in this regard, like the establishment of a Chief Procurement Officer, which would assist with value for money; but emphasised the persisting need to strengthen accountability across institutions and to create consequences for corruption.

(e) Poverty and inequality

The Commission reported that South Africa still faces high income and asset inequality as well as significant regional inequality in incomes and assets. The 2013 MTBPS highlights the need to maintain roll-out of social assistance to qualifying individuals and households to continue the poverty eradication strategy and reduce income inequality. The Commission indicated that, while government’s free basic services policy for indigent households was an important component of the poverty eradication strategy, the quality and sustainability of those services in the light of poorly maintained infrastructure, was a cause for concern.

5.2 Municipal Demarcation Board

The Municipal Demarcation Board (the Board) explained that it re-organised municipal areas in terms of Section 21 of the Local Government: Municipal Demarcation Act 27 of 1998. The Board further submitted that upon re-organising municipal boundaries, where there are major changes, the transition periods were highly involved and required both financial and non-financial resources to support affected municipalities with amalgamations and restructuring.

The Board explained that every five years it undertook municipal boundary redeterminations at its own initiative or through an application for a municipal boundary review by any interested party. The Board further submitted that it had determined municipal boundaries throughout the Republic. Two of the major municipal boundary re-determinations were in Gauteng and nine in the KwaZulu-Natal Province.

5.2.1 Demarcation implications

The Board submitted that in terms of section 14(2)(b) of the Local Government: Municipal Structures Act 117 of 1998, such restructuring or re-organisation may include amongst others:

The transfer of staff from an existing municipality to the superseding municipality, or if there is more than one superseding municipality, to any of those superseding municipalities.
The transfer of assets, liabilities, rights and obligations, and administrative and other records, from the existing municipality to the superseding municipality.
The continued application of any by-laws and resolutions of the existing municipality in that area, and the extent of such application.

5.2.2 Recommendations of the Board

The Board emphasised that government needed to consider allocating financial resources by way of a special grant to affected municipalities, which would assist with their preparatory work for restructuring. Such resources should be made available for the 2014/15 and 2015/16 financial years prior to the local elections.

5.3 South African Local Government Association (SALGA)

The South African Local Government Association (SALGA) was invited to make a submission on the MTBPS which included the proposed division of revenue In general, SALGA acknowledged the tight fiscal stance amid the national and global economic challenges. SALGA indicated that they noted the economic outlook and prudent fiscal policy. SALGA further submitted that a subdued economy and unemployment continued to negatively impact on revenue collection and service delivery in local government. In this regard, SALGA agreed with the tone of the MTBPS in that government, including municipalities, had to better use available resources to gain more value for money.

SALGA welcomed the 2013/14 financial year adjustments budget allocation of R293 million for local government and the additional funding through the adjustments budget which was aimed at disaster relief and implementation of capital projects through conditional grants. SALGA noted the proposed 9 percent annual average growth of the local government allocation over the medium term and the phasing in of the new formula for allocation of equitable share. However, SALGA proposed that the baseline allocation should be investigated going forward as the cost of services to the poor has increased substantially over time and therefore puts municipal free basic services programmes under pressure.

SALGA put it to the Committee that national government should address the matter of unfunded and underfunded mandates at local government. SALGA indicated that local government was faced with weak compliance with legislative provisions for assigned functions. SALGA argued that in some instances service level agreements did not exist, in other instances, norms and standards were not developed, and allocated funding was transferred too late or not at all. SALGA quoted the Financial and Fiscal Commission submission for the 2012/13 Division of Revenue which estimated the extent of unfunded mandates in metropolitan municipalities to be at R4 billion per annum. SALGA indicated that there was still a revenue collection challenge in most municipalities.

SALGA made a commitment that it would continue to impress upon its members to seek value for money in their operational budgets and to increase investment in infrastructure.

6. Observations

During considering and deliberating on the MTBPS and the submissions by the Financial and Fiscal Commission, the Municipal Demarcation Board and the South African Local Government Association, the Select Committee on Appropriations observed that:

6.1 Despite government’s fiscal stance to maintain the expenditure ceiling, the non-interest expenditure will continue to grow in real terms, averaging 2.2 percent a year over the medium term.

6.2 The distribution of resources is in line with the Constitutional requirement for equitable distribution of revenue nationally raised among the three spheres of government. National departments receive 47.6 percent, provinces 43.4 percent and local government 9 percent in the 2014/15 Budget.

6.3 The distribution of resources addresses the National Development Plan (NDP) priorities. Education receives 38.8 percent, health 25.5 percent, criminal justice 22.0 percent and economic services 7.9 percent.

6.4 The Minister of Finance’s commitment to eliminate wastage will add value to money spent.

6.5 Certain grant payment schedules (such as monthly instalments as per the approved payment schedule) might create uncertainty to recipients and also compromise accountability.

6.6 While the rationale and legality of withholding funds is understood such an action might have unintended consequences.

6.7 Incidences of unfunded mandates occur because such functions are not adequately funded. Again, when the sphere delegated fails to comply with the set frameworks or lacks capacity, devolution of such functions might not improve service delivery. In some cases there are complications with accountability on service delivery.

6.8 There is poor infrastructure management (maintenance and repairs despite ageing infrastructure) by municipalities that contributes to increasing backlogs, wastage/spillage and poor service delivery.

6.9 In provinces the departments of public works is responsible for maintenance and repairs of infrastructure while the budget is situated with client departments. This creates a disjuncture between functions and budget allocations.

6.10 Merging of municipalities in some cases has unintended consequences such as inheritance of debts, backlogs and contractual obligations.

6.11 Declared under-spending, like undeclared under-spending, has the potential to compromise service delivery but might also obscure the actual performance.

6.12 Reduction of allocations to certain grants might compromise the planned outputs and outcomes.

7. Recommendations

After considering and deliberating on the Medium Term Budget Policy Statement and the submissions by the Financial and Fiscal Commission, the Municipal Demarcation Board and the South African Local Government Association, the Select Committee on Appropriations recommends as follows:

7.1 Government should ensure that growth in expenditure translates into better life for all so there is value for the money spent.

7.2 National and provincial spheres of government should, in terms of Section 154 of the Constitution, continue to support and strengthen municipalities to manage their own affairs and also fulfil their Constitutional mandates.

7.3 National Treasury should ensure that resources within departments are also aligned with the National Development Plan priorities.

7.4 National Treasury should timeously provide Parliament with guidelines and/or regulations that will be applied to enforce the restrictions placed on air travel, catering, car hire etc.

7.5 National Treasury should, where applicable, stipulate payment schedules (including amounts and dates) when the Division of Revenue Bill for 2014/15 is presented.

7.6 National Treasury should apply withholding as a last resort and receiving institutions should ensure that there are consequences for the officials responsible for the withholding of funds.

7.7 To avoid incidences of unfunded mandates and challenges with accountability, allocation of funds should follow functions and capacity to perform such functions should be ascertained before devolution of such functions.

7.8 National Treasury, in terms of its legal obligations and in collaboration with provincial treasuries, should continue to monitor and support municipalities to ensure that they budget adequately for infrastructure repairs and maintenance.

7.9 National Treasury should ensure that, at the provincial sphere, allocation of funds follows functions relating to maintenance, repairs and replacement of infrastructure.

7.10 Special funding should be considered to cover any extra costs that might be created by merging municipalities.

7.11 National Treasury should monitor and support provincial treasuries to improve on their projections and expenditure controls.

7.12 National Treasury should ensure that the reduction of allocations to certain grants does not compromise service delivery.

7.13 Having considered the Medium Term Budget Policy Statement and submissions made by stakeholders and provinces the Committee recommends the adoption of the proposed division of revenue as presented.

Report to be considered.

2. REPORT OF THE SELECT COMMITTEE ON APPROPRIATIONS ON THE ADJUSTMENTS APPROPRIATION BILL [B 37 - 2013] (NATIONAL ASSEMBLY- SECTION 77), DATED 13 NOVEMBER 2013

The Select Committee on Appropriations, having considered the Adjustments Appropriation Bill [B 37 – 2013], referred to it, and classified by the Joint Tagging Mechanism as a section 77 Bill, reports that it has agreed to the Bill without amendments.

Report to be considered.

THURSDAY, 14 NOVEMBER 2013

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 76 Bill:

Infrastructure Development Bill [B 49 – 2013] (National Assembly – sec 76).

The JTM in terms of Joint Rule 160(6) classified the Women Empowerment and Gender Equality Bill [B 50 – 2013], introduced in the National Assembly, as a section 76 Bill and as a Bill falling within the ambit of section 18(1) of the Traditional Leadership and Governance Framework Act, 2003 (Act No 41 of 2003).

2. Bills passed by Houses – to be submitted to President for assent

Bills passed by National Council of Provinces on 14 November 2013:

Intellectual Property Laws Amendment Bill [B 8B – 2010] (National Assembly – sec 76).

Sectional Titles Amendment Bill [B 11B – 2013] (National Assembly – sec 76).

Adjustments Appropriation Bill [B 37 – 2013] (National Assembly – sec 77).

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Social Development

(a) Revised Annual Performance Plan of the Department of Social Development for 2013-2014.

2. The Minister of Trade and Industry

(a) General Notice No 1087, published in Government Gazette No 36995, dated 1 November 2013: Invitation for the public to comment on the Promotion and Protection of Investment Bill, 2013.

3. The Minister of Water and Environmental Affairs

(a) Lubombo Ponto Do Ouro-Kosi Bay Marine and Coastal Trans-frontier Conservation and Resource Area Protocol between the Government of the Republic of South Africa and the Government of the Republic of Mozambique, tabled in terms of section 231(3) of the Constitution, 1996.

(b) Lubombo Nsubane-Pongolo Trans-frontier Conservation and Resource Area Protocol between the Government of the Republic of South Africa and the Government of the Kingdom of Swaziland, tabled in terms of section 231(3) of the Constitution, 1996.

(c) Lubombo Ndumu-Tembe-Futi Trans-frontier Conservation and Resource Area Protocol between the Government of the Republic of South Africa and the Government of the Republic of Mozambique, tabled in terms of section 231(3) of the Constitution, 1996.

(d) General Trans-frontier Conservation and Resource Area Protocol between the Government of the Republic of South Africa and Government of the Republic of Mozambique and the Government of the Republic of the Kingdom of Swaziland, tabled in terms of section 231(3) of the Constitution, 1996.

(e) Agreement on the Development of the Gaza-Kruger-Gonarezhou Trans-frontier Park between the Government of the Republic of South Africa and Government of the Republic of Zimbabwe and the Government of the Republic of Mozambique, tabled in terms of section 231(3) of the Constitution, 1996.

(f) Agreement to Amend the Bilateral Agreement between the Government of the Republic of South Africa and Government of the Republic of Botswana on the Recognition of the Kgalagadi Trans-frontier Park, tabled in terms of section 231(3) of the Constitution, 1996.

(g) Treaty on the Establishment of the Ai-Ais/Richtersveld Trans-frontier Park between the Government of the Republic of South Africa and Government of the Republic of Namibia, tabled in terms of section 231(3) of the Constitution, 1996.

(h) Memorandum of Understanding between the Government of the Republic of South Africa and the Government of the Arab Republic of Egypt on Cooperation in the Field of the Environment, tabled in terms of section 231(3) of the Constitution, 1996.

Memorandum of Understanding between the Government of the Republic of South Africa and the Government of the Republic of Zambia on Cooperation in the Field of the Environmental and Natural Resources Management, tabled in terms of section 231(3) of the Constitution, 1996.

Memorandum of Understanding between the Government of the Republic of South Africa and the Government of the Republic of Botswana on the Regional Environmental and Social Assessment of Coal-based Energy Projects along the Botswana-South Africa Border, tabled in terms of section 231(3) of the Constitution, 1996.

(k) Agreement between the Government of the Republic of South Africa and the Government of the Republic of Uganda on Co-operation in the Fields of the Environment and Water Resources, tabled in terms of section 231(3) of the Constitution, 1996.

Memorandum of Understanding between the Government of Socialist Republic of Vietnam and the Government of the Republic of South Africa on Cooperation in Biodiversity Conservation and Protection, tabled in terms of section 231(3) of the Constitution, 1996.

(m) Agreement on the Regional Contingency Plan for Preparedness and Response to Major Marine Pollution Incidents in the Western Indian Ocean between the Governments of the Republic of South Africa, the Government of the Union of the Comoros, the Government of the French Republic, the Government of the Republic of Kenya, the Government of the Republic of Madagascar, the Government of the Republic of Mauritius, the Government of the Republic of Mozambique, the Government of the Republic of Seychelles and the Government of the United Republic of Tanzania, tabled in terms of section 231(3) of the Constitution, 1996.

Memorandum of Understanding between the Government of the Republic of South Africa and the Government of the Federal Republic of Nigeria on the Field of Environment, tabled in terms of section 231(3) of the Constitution, 1996.

Memorandum of Understanding in connection with the meeting of the Transitional Committee between the Government of the Republic of South Africa and the Secretariat of the United Nations Framework Convention on Climate Change and its Kyoto Protocol, tabled in terms of section 231(3) of the Constitution, 1996.

Memorandum of Understanding between the Secretariat of the United Nations Framework Convention on Climate Change and its Kyoto Protocol and the Government of the Republic of South Africa regarding the hosting of the Second Workshop on Long-term Finance and the Second Meeting of the Standing Committee in South Africa, tabled in terms of section 231(3) of the Constitution, 1996.

(q) General Notice No 704, published in Government Gazette No 36637, dated 12 July 2013: Notice of intention to declare a Management Authority for the Robben Island Museum World Heritage Site, in terms of the World Heritage Convention Act, 1999 (Act No 49 of 1999).

(r) General Notice No 705, published in Government Gazette No 36637, dated 12 July 2013: Notice of Intention to declare a Management Authority for the Makapan Valley World Heritage Site which is a component of the Fossil Hominid Sites of South Africa, in terms of the World Heritage Convention Act, 1999 (Act No 49 of 1999).

(s) General Notice No 706, published in Government Gazette No 36637, dated 12 July 2013: Notice of intention to declare a Management Authority for Taung Skull Fossil World Heritage Site which is a component of the Fossil Hominid Sites of South Africa, in terms of the World Heritage Convention Act, 1999 (Act No 49 of 1999).

(t) General Notice No 707, published in Government Gazette No 36637, dated 12 July 2013: Notice of intention to declare a Management Authority for the Richtersveld Cultural and Botanical Landscapes World Heritage Site, in terms of the World Heritage Convention Act, 1999 (Act No 49 of 1999).

(u) General Notice No 708, published in Government Gazette No 36637, dated 12 July 2013: Notice of intention to declare a Management Authority for Ukhahlamba/Drakensberg Park World Heritage Site, in terms of the World Heritage Convention Act, 1999 (Act No 49 of 1999).

(v) General Notice No 735, published in Government Gazette No 36673, dated 18 July 2013: National Environmental Management: Air Quality Amendment Bill, 2013: Explanatory Summary.

(w) General Notice No 736, published in Government Gazette No 36673, dated 18 July 2013: National Environmental Management Laws Amendment Bill, 2013: Explanatory Summary.

(x) General Notice No 737, published in Government Gazette No 36673, dated 18 July 2013: National Environmental Management: Waste Amendment Bill, 2013.

Government Notice No R. 506, published in Government Gazette No 33683, dated 19 July 2013: Alien and Invasive Species Regulations, in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).

(z) Government Notice No R. 507, published in Government Gazette No 33683, dated 19 July 2013: Publication of national list of invasive species , in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).

(aa) Government Notice No R. 508, published in Government Gazette No 33683, dated 19 July 2013: Publication of prohibited alien species , in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).

(bb) Government Notice No R. 509, published in Government Gazette No 33683, dated 19 July 2013: Publication of exempted alien species , in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).

(cc) General Notice No 763, published in Government Gazette No 36697, dated 26 July 2013: Draft Biodiversity Management Plan for Gypaetus Barbatus Meridionalis, in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).

(dd) General Notice No 853, published in Government Gazette No 36758, dated 19 August 2013: Exemption of Veterinarians from certain restrictions relating to the carrying out of restricted activities involving threatened or protected species, in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).

(ee) Government Notice No R. 634, published in Government Gazette No 36784, dated 23 August 2013: Waste classification and management regulations, in terms of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008).

(ff) Government Notice No R. 636, published in Government Gazette No 36784, dated 23 August 2013: National Norms and Standards for disposal of Waste to Landfill, in terms of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008).

(gg) Government Notice No R. 635, published in Government Gazette No 36784, dated 23 August 2013: National Norms and Standards for the assessment of waste for Landfill Disposal, in terms of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008).

(hh) Government Notice No R. 629, published in Government Gazette No 36770, dated 23 August 2013: Convention on International Trade in endangered species(Cites) Regulations, in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).

COMMITTEE REPORTS

National Council of Provinces

1. Report of the Select Committee on Finance on the Merchant Shipping (International Oil Pollution Compensation Fund) Administration Bill [B42 – 2013] (National Assembly- section 75), dated 13 November 2013

The Select Committee on Finance, having considered the Merchant Shipping (International Oil Pollution Compensation Fund) Administration Bill [B42 – 2013] (National Assembly - section 75), referred to it, and classified by the Joint Tagging Mechanism as a section 75 Bill, reports that it has agreed to the Bill.

Report to be considered.

2. Report of the Select Committee on Finance on the Merchant Shipping (International Oil Pollution Compensation Fund) Contributions Bill [B41 – 2013] (National Assembly- section 77), dated 13 November 2013

The Select Committee on Finance, having considered the Merchant Shipping (International Oil Pollution Compensation Fund) Contributions Bill [B41 – 2013] (National Assembly - section 77), referred to it, and classified by the Joint Tagging Mechanism as a section 77 Bill, reports that it has agreed to the Bill.

Report to be considered.

4. Report of the Select Committee on Labour and Public Enterprises on the Employment Equity Amendment Bill [B 31B – 2012] (National Assembly – sec 75), dated 13 November 2013:

The Select Committee on Labour and Public Enterprises, having considered the subject of the Employment Equity Amendment Bill [B 31B – 2012] (National Assembly – sec 75), referred to it, reports that it has agreed to the Bill.

The Democratic Alliance proposed the following amendments to the Bill, which were rejected by the Committee, as follows:

1. Requested amendment to Clause 6

Add the following paragraph after section 11(1)(b):

(c) any other factor that might be relevant.

1.1 Reason for amendment

Allow courts larger discretion when determining when unfair discrimination occurs and allow for a better case by case determination to prevent vexatious litigation.

2. Requested amendment to Clause 11

Remove all amendments to section 21.

2.1 Reason for amendment

Removing the amendment keeps the requirement of reporting every two years.
Removing the amendment will prevent extra administrative burden on small businesses, aiding their growth.

3. Requested amendment to Clause 13

Remove all amendments to section 36.

3.1 Reason for amendment

Removal will allow labour inspectors to continue obtaining written undertakings. Allowing flexibility to the Act and a less draconian approach to compliance.
Removal will also maintain the current certainty surrounding undertakings to comply and prevent uncertainty from setting in and allowing the Minister to draft regulations on the matter.

4. Requested amendment to Clause 14

Remove all amendments to Section 37.

4.1 Reason for amendment

Allows flexibility to the Act and a less draconian approach to compliance.
Removal of the amendment will also maintain the current certainty surrounding compliance orders and prevent uncertainty from setting in and allowing the Minister to draft regulations on the matter.

5. Requested amendment to Clause 15

Removal of the repeal of sections 39 and 40.

5.1 Reason for amendment

Removal of the amendment allows businesses to object to compliance orders in a cheap and easy manner, thereby relieving burden on not only small businesses but all businesses.
Removal will prevent the Minister from issuing regulations on the subject, thus creating certainty with regard to objections and preventing unnecessary ministerial discretion.
The removal of these sections is because the DoL wants to “facilitate quick enforcement.” However the DoL has not shown evidence of how the repeal will change this. Particularly if it is considered that the main reason for the shortcoming of the enforcement system is the absence of suitable resources for the labour inspectorate.

Not requiring compulsory or voluntary conciliation before a matter goes to the Labour Court will further block up the dispute resolution system rather than improve it.

Further the removal of the limitation in Section 39 and 40 does not consider Section 157(4) of the LRA which entitles a labour court to refuse a matter that has not has satisfactory conciliation.

6. Requested amendment to Clause 16

Removal of all amendments to section 42.

6.1 Reason for amendment

Removal of amendments will prevent vast discretion of the DG in determining assessment compliance, preventing subjective assessment compliance and abuse.
Removal of the amendments will also prevent the Minister from making regulations setting out assessment compliance, since assessment compliance will be set out in law already. This will create certainty on compliance.

7. Requested amendment to Clause 20

Removal of all amendments to section 53(5).

7.1. Reason for amendment

Removal of the amendments prevents the Minister from issuing a Code of Good Practice on Employment Equity compliance and prevents EE being governed by Ministerial regulation.
Removal of the amendmentsis in line with wanting to keep section 42 as it is to prevent discretionary and subjective determination of compliance.

8. Requested amendment to Clause 21

Insertion of section 55 21(1) [(1) The Minister may by notice in the Gazette [and], on the advice of the Commission and with the approval of parliament, make any regulation regarding -]

8.1 Reason for amendment

Insertion and deletion will limit Ministerial discretion by requiring that regulations be approved by parliament. Allowing the public to have input on the regulations.

DEFINITIONS SECTION

9. Requested amendment to Clause 1(d)

Insert in the definitions section between “serve” and “suitably qualified”

“‘substantially the same work’ is considered to fall within the same job classification. The work is not identical in every aspect, nor is it interchangeable.”

9.1 Reason for amendment

The insertion will create certainty on the matter and prevent vexatious litigation.
The definition will bring South Africa further in line with ILO conventions.

10. Requested amendment to Schedule 1

Schedule 1

Previous Contravention

Contravention of any Provision of Section 16 (read with 17), 19, 22, 24, 25,26 and 43(2)

Contravention of any Provisions of Sections 20, 21, 23 and 44(b)

No previous contravention

(i) No more than R500 000 for businesses employing 250 persons or less;

(ii) No more than R1 500 000 for businesses employing 250 persons or more

(i) No more than R500 000 for businesses employing 250 persons or less;

(ii) No more than R1 500 000 for businesses employing 250 persons or more

A previous contravention in respect of the same offence

(i) No more than R600 000 for businesses employing 250 persons or less;

(ii) No more than R1 800 000 for businesses employing 250 persons or more.

(i) No more than R600 000 for businesses employing 250 persons or less;

(ii) No more than R1 500 000 for businesses employing 250 persons or more

A previous contravention within the previous 12 months or two previous contraventions in respect of the same provision within three years

(i) No more than R700 000 for businesses employing 250 persons or less;

(ii) No more than R1 800 000 for businesses employing 25o persons or more.

(i) No more than R700 000 for businesses employing 250 persons or less;

(ii) No more than R1 500 000 for businesses employing 250 persons or more

Three previous contraventions in respect of the same provision within three years

(i) No more than R800 000 for business employing 250 persons or less;

(ii) No more than R2 400 000 for businesses employing 250 persons or more.

(i) No more than R800 000 for businesses employing 250 persons or less;

(ii) No more than R1 500 000 for businesses employing 250 persons or more

Four previous contraventions in respect of the same provision within three years

(i) R900 000 for businesses employing 250 persons or less;

(ii) R2 700 000 for businesses employing 250 persons or more.

(i) R900 000 for businesses employing 250 persons or less;

(ii) R1 500 000 for businesses employing 250 persons or more

10.1 Reason for amendment

Changes will prevent excessive fines from bankrupting small businesses and consequently resulting in job loss.
That attempt to link maximum fines to turnover in the absence of any attempt to legislate proportionality between the punishment and the offence is irrational.
Our amendments will allow courts to have discretions, thus allowing more appropriate responses to non-compliance.

Report to be considered.

5. Report of the Select Committee on Education and Recreation on the South African Language Practitioners' Council Bill, [B 14B - 2013] (National Assembly - section 75), dated 13 November 2013

The Select Committee on Education and Recreation, having considered the subject of the South African Language Practitioners' Council Bill [B 14B - 2013] (National Assembly - section 75), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the Bill with the following proposed amendments:

FRONT PAGE

1. On page 1, in the sixth line, after "(National Assembly)" to insert "(section 75)".

CHAPTER 1

1. On page 4, in line 2, after “DEFINITIONS” to insert “AND APPLICATION”.

CLAUSE 1

1. On page 4, in line 34, to omit the first "Portfolio Committee" and to substitute "Parliament".

2. On page 4, in line 34, after the second "Portfolio Committee" to insert "and Select Committee".

CLAUSE 2

1. Clause rejected.

NEW CLAUSE

1. On page 5, after line 11 and before line 12, to insert the following new clause:

Application of Act

2. This Act applies to all language practitioners within the Republic of South Africa.

CLAUSE 4

1. On page 5, from line 25, to omit paragraphs (b), (c) and (d) and to substitute:

(b) scrutinise particulars of people intending to register;

(c) register people who are registrable by the Council;

(d) accredit people who are accreditable by the Council;

CLAUSE 5

1. On page 5, in line 46, to omit "(SAQA)".

2. On page 5, in line 47, to omit "(ETQA)".

CLAUSE 6

1. On page 7, in line 23, to omit the inverted commas.

2. On page 7, in line 39, to omit "the Portfolio Committee" and to substitute "Parliament".

CLAUSE 7

1. On page 8, in line 7, after "Constitution" to insert "of the Republic of South Africa, 1996".

CLAUSE 12

1. On page 9, in line 38, to omit “subsection (1)” and to substitute “subsection (2)”.

CLAUSE 20

1. On page 12, in line 13, to omit “paragraph (a)” and to substitute “subsection (1)”.

CLAUSE 25

1. On page 14, from line 5, to omit "the Portfolio Committee" and to substitute "Parliament".

CLAUSE 31

1. On page 16, in line 2, to omit "is proved".

CLAUSE 35

1. On page 17, in line 18, to omit “15(4)” and to substitute “16(4)”.

ARRANGEMENT OF SECTIONS

On page 2, in line 6, after “DEFINITIONS” to insert “AND APPLICATION”.

On page 2, after line 7 and before line 8, to insert the following:

2. Application of Act

On page 2, in line 10, to omit “2. Application of Act”.

Report to be considered.

3. Report of the Select Committee on Labour and Public Enterprises on the South African Postbank Limited Amendment Bill [B 25B–2013] (National Assembly – sec 75), dated 13 November 2013:

The Select Committee on Labour and Public Enterprises, having considered the subject of the South African Postbank Limited Amendment Bill [B 25B – 2013] (National Assembly – sec 75), referred to it, reports that it has agreed to the Bill.

Report to be considered.

Audio

No related

Documents

NCOP: Unrevised hansard

Bills

B14-2013 - South African Language Practitioners’ Council Bill

Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 14 Nov 2013

Summary

Minutes

Audio

Documents

Bills

What's wrong with this page?