Questions and Replies

Reply:

(a) (b) (c) (i) (ii)

Advertising space was procured in most newspapers, including The New Age. This was to promote and advertise the various initiatives, services and products of the dti. Examples of these amongst others were the National Pavilions, SA Premier Business Awards, BRICS and various incentive programmes.

Financial Year	Number	Amount
2012 - 2013	15	R1,009,737.90
2013 – 2014	4	R387,793.80
2014 – 2015	11	R463,705.60

 

Reply:

The trade statistics between South Africa and the world per month for the period 1 January 2015 and 31 December 2015 are reflected in the table below as reflected on the dti trade statistics. Trade statistics for Jan 2016 will only be available at the end of February 2016.

Period	RSA Exports To the World	RSA Imports From the World	Trade Balance
15-Jan	R 67 711 278 171.00	R 91 246 139 654.00	R -23 534 861 483.00
15-Feb	R 77 501 216 358.00	R 85 347 719 814.00	R -7 846 503 456.00
15-Mar	R 92 468 791 675.00	R 90 845 067 889.00	R 1 623 723 786.00
15-Apr	R 83 770 337 974.00	R 86 234 008 823.00	R -2 463 670 849.00
15-May	R 88 363 040 731.00	R 83 871 362 021.00	R 4 491 678 710.00
15-Jun	R 89 929 880 048.00	R 84 469 615 781.00	R 5 460 264 267.00
15-Jul	R 93 022 192 254.00	R 94 161 166 050.00	R -1 138 973 796.00
15-Aug	R 87 255 431 865.00	R 97 551 304 536.00	R -10 295 872 671.00
15-Sep	R 91 389 099 696.00	R 93 130 209 473.00	R -1 741 109 777.00
15-Oct	R 85 298 508 022.00	R 107 390 729 251.00	R -22 092 221 229.00
15-Nov	R 93 572 841 546.00	R 92 889 891 297.00	R 682 950 249.00
15-Dec	R 88 770 527 510.00	R 80 549 461 697.00	R 8 221 065 813.00

(2) how much direct foreign (a) investment and (b) disinvestment did South Africa have during the period 1 January 2015 and 31 January 2016 in each month? NW296E

Response:

(2) (a) The recording of direct investment on the financial account is the function of the South Africa Reserve Bank. The Reserve Bank publishes such via a quarterly bulletin. The latest report covering the period up to December 2015 will only be available by the Reserve Bank in the fourth quarter bulletin later this month (March 2016).

the dti investment unit develops a pipeline of potential investment projects and for Q3 of the financial year 2015/16 recorded an investment pipeline of R 63.7 bn. This includes commitments by Chinese President Xi Jinping during the State Visit in December 2015 to invest in infrastructure and a green fields automotive plant of $ 800 million. The pipeline includes committed investments and launches by Unilever, Hunting, AVK Valves amongst others.

It should be noted that Multinationals operating in South Africa generally fund their new investments and expansions from the balance sheet of their local operations and utilize local banks to raise loans rather than receive funding from their foreign headquarters.

(b) The department does not record disinvestments. Disinvestment occurs as a result of a number of factors including reactions to prevailing global and local conditions and environment and also changes in business focus. For example in the Apartheid era there was a deliberate policy by international companies to disinvest from South Africa. However there are international companies that have invested and failed and therefore closed shop eg. Evraz has put Highveld Steel into business rescue because of the depressed steel demand and low prices of steel. This is not a disinvestment but a commercial decision driven by market conditions.

Reply:

(a) (i) (ii)

For the period 1 April 2015 to date, 66% of the department’s total procurement spent was allocated to SMME’s including Co-operatives.

(b) (i) (ii)

The information from the entities is being collated and will be made available as soon as possible.

Reply:

(a) (b) (c) (i) (ii)

Information requested in the format above is not available as only particulars of companies are recorded within the financial systems in the department; not the details of any directors.

Reply:

(1) The Department of Health (DoH) and the Department of Agriculture, Forestry and Fisheries (DAFF) are the most suitable departments to deal with this matter. Food Control section within DoH is responsible for ensuring the safety of food in South Africa. This service is based on the basic needs of communities and the right of South Africans to make informed food choices without being misled. According to a presentation by DAFF in a Workshop to the Portfolio Committee on Agriculture, Forestry & Fisheries held on 2 and 3 February 2016; on Food Security and Food Safety; the food wastage in South Africa is approximately 9.04 million tons every year. In this regard, a presentation is attached as “Annex A”, please see the penultimate page of the presentation.

(2) The Minister of Trade and Industry will not be undertaking any such study.

(3) The Minister of Trade and Industry will not be considering ordering an investigation to establish how the edible throwaway food could be made available to food banks and bodies that would distribute is effectively to needy people as this function does not fall within the ambit of trade and industry but the DoH and DAFF.

 

Reply:

(a) The Socio-Economic Impact Assessment was conducted by the Department of Planning, Monitoring and Evaluation in the Presidency as a pre-approval condition by Cabinet and the certificate was granted to the dti on the 13th October 2015.

(b) It envisaged that the Black Industrialist Scheme (BIS) will accelerate the quantitative and qualitative increase and participation of Black Industrialists in the national economy that will contribute towards South Africa’s developmental objectives, such as job creation, exports, skills development, supplier development, industrial decentralisation and localisation. Projects will be assessed on their merits in relation to their contribution to these objectives and catalytic impacts.

Reply:

Yes, vacant positions have been frozen.

(a) 117 vacant positions have been frozen as at 19 February 2016;

	(b)	(c)
No	Designation of position	Period vacant (months)
1	Deputy Director: Regulatory Impact Assessment	3.2
2	Director: Legal Support & Enforcement	3.1
3	Admin Clerk: Fin Management	6.1
4	Senior Accounting Clerk	3.0
5	Asst State Accountant: Salary Payments	18.3
6	Senior Accounting Clerk	3.1
7	Senior Provisioning Administration Clerk	5.9
8	Advanced Team Assistant	4.1
9	Advanced Team Assistant	4.1
10	Call Centre Agent	4.1
11	Internal Auditor	2.0
12	Internal Auditor	5.1
13	Performance Auditor	4.1
14	Senior State Accountant	15.2
15	Assistant Director: Manufacturing Industries	2.2
16	Assistant Director: Media Buyer	20.3
17	Assistant Director: Salaries Travel & Subsistence	2.0
18	Economist	16.2
19	Deputy Director: Economic Research	4.1
20	Deputy Director: Economic Research	4.1
21	Director: Compliance And Forensic Audit	4.1
22	Director: Regulatory Compliance & Registrations	0.0
23	Director: Immigration, Labour & Talent	0.0
24	Director: One Stop Shop	0.0
25	Chief Director: Economic Research	0.0
26	Chief Director: Policy Research	0.0
	Designation of post	Period vacant (months)
27	Chief Provisioning Administration Clerk	1.0
28	State Accountant	1.0
29	Senior Administrative Officer	1.0
30	Senior State Accountant	1.0
31	Assistant Director: Budget Management	3.0
32	Specialist: Computer Audit	1.0
33	Call Centre Agent	0.0
34	Deputy Director: Stakeholder Management	0.0
35	Advanced Team Assistant	0.0
36	Assistant Director: HR Support	1.0
37	Deputy Director: National Industrial Participation	5.8
38	Chief Director: Agro Processing	4.1
39	Personal Assistant	1.0
40	Deputy Director: Industrial Waste Man & Recycling	1.0
41	Advanced Team Assistant	0.0
42	Director: Renewable Energy	0.0
43	Messenger	2.1
44	Administrative Assistant	4.1
45	Advanced Team Assistant	3.0
46	ICT Help Desktop Services	2.0
47	Senior Communication Technician	2.1
48	Assistant Director: Human Resource Operations	7.6
49	Assistant Director: Performance Management	3.0
50	Assistant Director: Cost Management & Quantity Surveying	1.5
51	Assistant Director: Conditions of Service And Remuneration	2.0
52	Deputy Director: Recruitment Strategy & Policy	7.1
53	Deputy Director: Database Administration	3.8
54	Deputy Director: Employment Relations	15.2
55	Deputy Director: Business Relationship Management	8.1
56	Deputy Director: Business Analysis	3.1
57	Deputy Director: Applications Architecture	18.3
58	MR6 Legal Administration Officer Senior	4.1
59	MR6 Legal Administration Officer Senior	17.2
60	Recruitment Administrative Clerk	1.0
61	Registry Clerk	1.0
62	Vetting Officer	1.0
63	Advanced Team Assistant	1.0
64	Advanced Team Assistant	1.0
65	Deputy Director: Applications Development & Support	1.0
66	Work Study Officer	0.0
67	Director: Litigation	0.0
68	Advanced Team Assistant	2.4
69	Advanced Team Assistant	5.1
70	Personal Assistant	2.0
71	Assistant Director: Trade Rules	8.1
72	Deputy Director: Trade In Services	10.2
73	Deputy Director: Non-Proliferation	4.1
	Designation of post	Period vacant (months)
74	Director: South African Development Community	2.0
75	Director: Multilaterals	2.0
76	Director: SADC	2.0
77	Chief Director: Non-Proliferation	4.1
78	Advanced Team Assistant	0.0
79	Administration Clerk Grade III Senior	6.1
80	Snr Admin Clerk	14.2
81	Advanced Team Assistant	9.2
82	Advanced Team Assistant	6.8
83	Trade and Industry Advisor: Legal Service	7.1
84	Personal Assistant	6.1
85	Trade and Industry Advisor: Agro Processing & Textiles	4.6
86	Trade and Industry Advisor: Paper, Chemicals and Plastics	12.1
87	Trade and Industry Advisor: Infrastructure Intensive Sectors	14.2
88	Assistant Director: EMIA	2.0
89	Deputy Director: Applications & Claims (PAIS&MHCV)	22.3
90	Deputy Director: Manufacturing Investment Cluster (MIC)	7.1
91	Deputy Director: Applications & Claims	22.3
92	Director: Operations	6.1
93	Deputy Director: Legal Services	0.4
94	Deputy Director: Agro Processing	0.0
95	Assistant Director: Agro Processing & Textiles	0.0
96	Trade and Industry Advisor: Export Info Services	8.1
97	Trade and Industry Advisor: Small Exporter Development	5.1
98	Executive Assistant	2.0
99	Deputy Director: Service Industries	4.1
100	Deputy Director: Manufacturing Industries	2.0
101	Deputy Director: Services Industries	2.0
102	Deputy Director: Trade Opportunities	1.0
103	Deputy Director: strategic Support	0.0
104	Private Secretary	2.0
105	Personal Assistant	3.0
106	Deputy Director: Black Economic Empowerment	3.1
107	Director: BEE	10.2
108	Director	0.0
109	Personal Assistant	0.0
110	Programme Manager	0.0
111	Director	0.0
112	Manager: Legal Services	0.0
113	Chief Director	0.0
114	Executive Manager: Compliance Education & Advocacy	0.0
115	Chief Director	4.1
116	Programme Manager	0.9
117	Director: Economic Infrastructure & Logistics	0.0

Reply:

the dti continues to support the sustainability of the local poultry producers through a number of measures including the import tariff for bone-in chicken which was approved and implemented in September 2014. The anti-dumping duties on frozen bone-in portions against US companies also remain in place. The 65 000 ton exemption from the anti-dumping duty would constitute, in volume terms/tonnage, 13.6% of South Africa’s imports of poultry meat in 2015.

In addition an application for the designation of locally produced poultry meat for government procurement is in the approval process with implementation expected in less than 6 months’ time.

the dti continues to provide incentives for investment into poultry production and animal feed industry in order to help mitigate costs towards competitiveness of the industry. As an example, Astral’s Meadow Feeds investment of R193 251 000 was facilitated through an incentive to the value of R14 433 754 over a period of two years.

A further area of support is the work underway with the SA Poultry Association and DAFF towards opening up new market opportunities. An example is the upcoming mission to the United Arab Emirates.

South Africa and the United States agreed to a developmental component to assist poultry producers in South Africa, particularly historically disadvantaged individuals. This development component will be facilitated by the dti and DAFF together with relevant US stakeholders.

 

Reply:

1. A scoping review of Proudly South Africa (PSA) was undertaken by the dti in the second half of 2014. The purpose of the scoping review was to gather information which could assist engagements with the National Economic Development and Labour Council (NEDLAC) and the PSA Board, which is constituted by NEDLAC, to strengthen the work of PSA.

2. Yes a copy of the scoping review can be made available to the member.

Reply:

 

(a) & (b) (i) (ii) the dti is working closely with the South African Aerospace, Maritime and Defence Industry Association, Armscor, Denel and a range of private sector companies in the aerospace and defence (land and marine) industry.The purpose of this work is to build upon existing domestic value added manufacturing capabilities to increase high value manufacturing both for domestic and export demand; broaden the supplier base; increase employment and contribute to economic growth.

Subject to strategic and confidentiality considerations this work includes stronger deployment of localisation criteria for domestic procurement; the inclusion of aerospace and defence companies in the Manufacturing Competitiveness Enhancement Programme (MCEP); provision of export support through the Aerospace and Defence Export Council; establishment of Supplier Incentive Scheme for the Aerospace and Defence Industry to further broaden the supplier base and strengthen its integration into the global supply chains and the incorporation of state-owned Aerospace and Defence National Strategic Testing Facilities into the Critical Infrastructure Programme of which the majority are owned by Armscor .

In addition to the above the dti has an Aerospace Industry Support Initiative hosted at and managed by the CSIR. Its intent is to accelerate government strategic objectives such as industrialisation of technologies with stronger emphasis on technology transfer; job creation and industry transformation.

 

Reply:

1. (a)The Chief Executive Officer and staff of Proudly South Africa (PSA) report to a Board appointed through the Trade and Investment Chamber of the National Economic Development and Labour Council (NEDLAC). With the possible exception of members of this Board having participated in their own or other capacity at the World Economic Forum (WEF) representatives of Proudly SA did not travel to the World Economic Forum which took place in Davos, Switzerland.

(b)Consequently, Proudly SA did not incur any costs associated with the World Economic Forum with respect to (i) travel; (ii) subsistence and (iii) events hosted or sponsored.

2. No correlation is possible or required since PSA did not participate.

 

Reply:

Yes, the Minister has entered into a performance agreement with the President with regard to the implementation of the Medium-Term Strategic Framework for 2014-2019.

(a) The Minister is the coordinator of Outcome 4: Decent employment through inclusive economic growth. He further supports the implementation of the following outcomes:

Outcome 2: A long and healthy life for all South Africans.

Outcome 6: An efficient, competitive and responsive economic infrastructure network.

Outcome 7: Comprehensive rural development and land reform.

Outcome 9: Responsive, accountable and efficient local government.

Outcome 11: A better South Africa, contribute to a better and safer Africa in a better world.

Outcome13: A comprehensive, responsive and sustainable social protection system.

(b) to (e) A Programme of Action is presented to Cabinet on a quaterly basis where progress is noted, bottlenecks to implementation are dicussed, and recommendations to address bottlenecks are considered and approved.

the dti further submit quarterly performance reports to DPME and NT as well as to the relevant parliamentary committees. The Annual Report of the department is tabled in Parliament. The member is requested to refer to the department’s quarter and annual reports.

Reply:

The Department can confirm that they maintain a list of exporters and regularly update it. The Department is in the process of developing an integrated database of exporters which will incorporate plethora of exporters but not limiting it to Customs and Excise data, our extended network through export councils exporting members, as well as the Regional Network of Trade Provincial Organisations and the dti’s trade lead bulletin subscribers database which is an integral part of the trade lead management system.

(2) Whether this list is accessible to the public; if not, why not; if so, where can it be accessed?

Reply:

The list is accessible to the public but distribution is limited to ensure that confidentiality of the exporters on the database is upheld. The list could be accessed through the Department’s Export Help Desk.

The contact persons are Ms Zanele Mkhize and Mr Jacob Moatshe who could be reached at (012) 394 5909 and (012) 394 3024; [email protected],za; [email protected] respectively.

Reply:

According to the response received from NLC:

1. The organisation’s name is Child Welfare South Africa Edenvale. They applied under the Early Childhood Development Infrastructure targeted call which opened on 14 December 2014 and closed on 13 February 2015. This being a focused call towards providing suitable accommodation for the advancement of Early Childhood Development through either a building or container. The application from the organisation unfortunately only applied for operational cost. Furthermore the objectives of the organisation are not focusing on early childhood development as outlined in the call and this is why the application was declined.

Please see paragraph 13, page 5 of the “Charities sector targeted call 2014 guidelines and information required” attached hereto as annexure A for the objectives of the call.

1. (a) The organisation was last approved for funding on 13 June 2013 and paid on 28 November 2013.

(b) The amount allocated was R308,000.00 (Three hundred and Eight Thousand Rands). This was towards operations with a large portion of the allocation awarded for salaries.

 

Reply:

 

Entity	Person in question	(a)	(b)	(b)(i)	(b)(ii)	(b)(iii)	(c)(i)	(c)(ii)
National Regulator for Compulsory Specifications (NRCS)	Mr Asogan Moodley	None	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable

Reply:

According to the response received from National Lotteries Commission

(a) The Grant was intended for Breast Cancer Awareness initiatives which included concerts in Mafikeng & Umtata and compilation of a Documentary.

(b) The NLC is not in position to answer this question right now as it awaits the first progress report from the beneficiary.

(c) The project is still being currently implemented and the NLC awaits the first progress report. The NLC will be in a position to comment on (i) and (ii) after assessing the progress report. Once the first progress report is found to be satisfactory, the second tranche payment will be made.

(d) No. With all grants made from the NLDTF, the NLC studies the progress reports to ensure that the funds were used for the intended purposes.

(e) The NLC has not reached any “conclusion”. The NLC is not investigating any impropriety. In assessing of the progress report, and should the NLC find cause for concern, the NLC will raise the matter with the beneficiary.

 

Reply:

 

1) The Financial contribution under the Film Incentive Programme to the Film of Mad Max: Fury Road was R 72 340 609

2) The objective of the Foreign Film and TV production incentive is to attract Foreign Direct Investment and to create jobs that expose local film practitioners to work that they would, otherwise, never be exposed to given the budget sizes applicable to local productions. The film incentive provides a rebate to filmmakers based on the Qualifying South African Production Expenditure (QSAPE) of the amount spent on the production in SA. The film Mad Max: Fury Road complied with the requirements of the incentive to generate more than R 289 million QSAPE injected into South Africa’s economy.

3) nThe film incentive is a means to attract investment and create jobs while supporting the growth of the industry. The dti incentive evaluation does not assess commercial viability of productions, but rather the economic impact to be derived from the production of films in South Africa. In this instance, the committed value of spending in the economy did take place and committed number of actors were employed for the production of the movie.

Reply:

Flowing from the recommendations of the audits initiated by the dti one individual has been dismissed from the public service. Allegations of criminal activity with respect to this individual and companies alleged to be involved in fraudulent activities has been handed over to the South African Police Services. The decision whether to charge the individual under any one or more legal statutes is one which will be made by the National Prosecution Authority. The case number is CAS 647-12-2013.

A civil legal process is underway to recover public funds from this individual. The Legal Services section of the Department of Trade and Industry is following developments in this regard. The relevant case number is 27011/2013 at the Sunnyside Police Station.

.

a) Until the individuals has been charged in a court of law I am not at liberty to divulge the names of the individuals implicated in the allegations of criminal behaviour.

b) See above.

 

Reply:

1.a) The company contracted to construct the ICT2 Building was Stefannuti Stocks/Timbela Joint Venture.

b) i) The site for the construction was handed over on 23 January 2011. The ‘Works Completion’ was on the 6 December 2011.

ii) The ‘Final Completion/Correction of Defects’ was on 5 December 2012. The official opening of the ICT2 building was on 29 November 2011 and official occupation was on 2 January 2012.

2.a) Occupation of the ICT2 building took place on the 2 January by the CAV staff and by Aerosud.

b) Aerosud and the CAV staff still occupy the building which is mainly used for innovation and training for the Ahrlac programme.

3.a) Electricity, water and sewer services to the ITC2 building was supplied by Aerosud from the commencement of construction as a temporary measure. This was also the case with respect to the provision of electricity to the construction activities for phase two of the CAV.

Reply:

No monies have as yet been recovered from any:

a) persons or

b) companies, awarded

i) contracts.

ii) No tenders were adjudicated since the prescripts of the Public Finance Management Act (PFMA) were not applied.

This arises from the fact that legal processes to recover funds are still underway.

aa); bb); aaa); bbb) and cc) do therefore not apply.

Reply:

a) No tenancy agreement was signed. This was because the Occupancy Certificate was not issued. The Occupancy Certificate was not issued by the City of Tshwane because the bulk earthworks contract was terminated as a result of the forensic investigation which demonstrated that the contract was non-compliant with the Construction Industry Development Board (CIDB) regulations. Urgent effort and a process is underway to reinstate the bulk earthworks programme and pave the way for the Occupancy Certificate.

b) i); ii); iii) and iv) do not therefore apply.

 

Reply:

1. The dti fully recognises the challenges that women face in society and in the economy. The department recognises that women tend to face more barriers that hinder them from contributing meaningfully and effectively to the country’s economic aspiration of becoming a globally competitive industrial economy. It is for this reason that one of the objectives of our industrial policy is to promote increasing participation of previously marginalised citizens and regions in the mainstream industrial economy.
2. Currently, the dti does not have any collaboration or joint projects with the Department for Women in the Presidency. The department is, however, open to such collaborations should the opportunity arise.
3. The dti continues to provide a wide range of measures aimed at supporting women entrepreneurs and increasing their participation in the economy. Our wide range of incentives provides support to entrepreneurs and industrialists, including women. These incentives include those that support women entrepreneurs (e.g. Export Marketing and Investment Assistance Scheme, National Exporter Development Programme, Film, Incubation), women students and researchers (THRIP and SPII) and job placement of women graduates (ITUKISE). Some selected achievements include the placement of 645 women graduates in jobs through ITUKISE Programme in 2015; employment of over 14 700 women through the Business Processing Services incentives in 2015; supporting 574 women-owned companies through EMIA between 2011 and 2014; supporting 351 women-owned companies through the Exporter Development Programme between 2013 and 2015. To date, THRIP has supported 585 female students and 335 women researchers. However, the dti recognises that more can be done and, indeed, more will be done.
4. When the President established the Department for Small Business Development, some of the functions of the dti were transferred to the new Department. Women and Gender Programmes, together with all responsible officials and business units, were also transferred.
5. However, the dti has since established a new Women Empowerment Chief Directorate to drive women empowerment. A Chief Director has been appointed and has started to develop women empowerment programmes and initiatives. Once these programmes and initiatives have been finalised and concretised, we will gladly share them with you and the public.

 

Reply:

(1) and (2) After years of international isolation because of Apartheid policies, South Africa was accepted into the global community with the onset of democracy in 1994. Responding to these new opportunities was a strategic imperative of the new democratic government in order to build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives. All the working visits detailed below in Annexure A were undertaken in support of this strategic imperative; which in turn yielded a number of notable outcomes.

For further detailed information regarding the working visits and these outcomes, the Honourable Member is advised to consult the dti Annual Report 2013/2014 and several previous Parliamentary Questions on the same matter.

Reply:

(1) According to the World Investment Report released by United Nations Conference on Trade and Development (UNCTAD) in June 2015 aggregate global Foreign Direct Investment (FDI) inflows declined by 16% in 2014 as a result of the continued uneven and weak recovery of the global economy after the 2008 Global Financial Crisis. Not surprisingly, South Africa was also impacted and FDI inflows slowed from US$8.3 billion in 2013. The fdi report 2015 by fdi intelligence which tracks investment projects also reports a decline in greenfield fdi projects globally.

Nevertheless, South Africa still attracted a substantial US$ 5.7 billion in 2014. By comparison, Nigeria attracted US$ 4.6 billion, Mozambique US$4.9 billion, Kenya US$ 900 million and Mauritius US$ 418 million. In 2014, South Africa was again the largest recipient of FDI on the African continent. South Africa remains an attractive investment destination as per the latest Ernest and Young attractive destination survey launched in June 2015. According to the EY survey South Africa remains the top destination in Africa for fdi projects. Over the past five years South Africa received twice as many fdi projects as any African country. Multinationals have affirmed South Africa as a regional manufacturing hub and have retained and expanded their investments in new plants. Companies such as Unilever have invested R 4 billion in expansions, upgrades and new plants in South Africa.

In addition to South Africa being a destination for FDI, we are now also a leading source of FDI on the African continent. As this Government has stated on many occasions, our domestic market is simply too small to – on its own – sustain high economic growth rates over the long-term. The African continent is now widely acknowledged as the next growth frontier and South Africa is in the fortunate position of having identified the growth opportunities in Africa many years ago already.

This is why our trade policy prioritises regional development through the Southern African Development Community (SADC); the Tripartite Free Trade Area (T-FTA) signed in June 2015 in Sharm el-Sheikh and the Continental Free Trade Area (C-FTA).

These Agreements do not only open the door to South African exporters. They also provide investment opportunities for companies owned by South Africans or domiciled in South Africa.

Companies such as Vodacom, MTN, SAB-Miller, Standard Bank, Pick n Pay, Shoprite-Checkers, Woolworths, Nando’s and mining companies are just a few of the many South African brands which have become instantly recognisable across Africa. These investments partly account for FDI outflows from South Africa and show the extent to which South African entrepreneurs and companies have become serious participants in the global economy. In most cases, these outward investments draw on their South African value-chains, expertise and financial resources.

These outward investments are positive and should be celebrated. Market opportunities are arising as Africa’s population urbanises and consumer demand grows off a low base in many African countries. We encourage our firms to seize these opportunities, noting that their ability to do so is precisely because they are able to leverage off the financial resources and market successes in South Africa.

Such investments by South African companies contribute to Regional Integration, Infrastructure Development and Industrialisation of the African such as Scaw Metals investment in Ghana.

 

(2) President Zuma during the State of the Nation Address (SONA), 12th February 2015 announced a nine point plan to push the economy forward, ignite growth and create jobs. Government is also committed to improving the investment climate and ease of doing business. Also announced during the SONA was the establishment of a one stop Inter-Departmental Clearing House to attend to investor complaints and problems. the dti has given effect to the Inter- Departmental Clearing House and has established a dedicated division for investment promotion, facilitation and aftercare. Specialised capacity is been added that will fast track, unblock and reduce red tape in Government. Investors are encouraged to contact the dti investment unit for this clearing house service.

Reply:

(i)  Government has responded in a number of ways to ensure the long-term viability of the strategic iron-ore and steel industry in SA since 2010. Therefore (a) and (b) above do not apply.

Government convened an interdepartmental task team on iron and steel (IDTT) in 2010, to develop a set of inter-related policy instruments and interventions. These included;

• A process to secure a domestically produced steel price in the lowest global quartile of steel prices, working in close collaboration with stakeholders, especially the largest domestic steel producer Arcelor-Mittal. In so doing to ensure that domestic comparative advantages at the time, especially a cost plus price for iron ore, was passed on to downstream users of steel,
• Processes to increase competition in the domestic steel industry to support the same objective,
• An intervention to curtail the unencumbered export of scrap metal to ensure security of scrap metal supply to domestic steel producers at competitive prices; prevent the associated illegal export of precious metals; limit the extent to which the associated theft of critical infrastructure such as cables was carried out and lower the carbon intensity of the economy,
• All these and other measures were designed to ensure both security of supply and competitive steel prices in support of downstream manufacturing and value addition as a competitive advantage for domestic, labour intensive manufacturing.

Arising from the work, Cabinet approved a set of recommendations made by the IDTT in December 2012. These included:

• A process led by the DMR to amend the Mineral Resources and Petroleum Development Act (MPRDA) to secure a competitive advantage for the manufacturing sector arising from South Africa’s enormous resource endowment, especially in key value chains; inclusive of iron ore and steel.
• A process led by the EDD to utilise the International Trade Administration Act to safeguard the supply of affordable scrap metal to domestic mills and curtail the abuse of export of scrap metal.
• A process to amend the Competition Act led by EDD to ensure that iron ore price concessions are indeed passed on to downstream users, and
• An Industrial Development Corporation led process to secure new steel investments to increase domestic capacity and strengthen competition in the steel sector.

(ii) (aa) and (bb) Significant progress has been secured in many of the above areas. This is despite the fact that there was, over an extended period, a sub-optimal level of cooperation from the major steel producer. This during a period which coincided with the global commodity boom, where market conditions included both high demand and high prices for steel which in turn translated into high margins and profits as well as the fact that input costs for the major steel producer were relatively low. Finally and most critically a set of circumstances which included the fact that, notwithstanding favourable market conditions, there was very little maintenance and capital investment in plant and machinery carried out by the major domestic steel producer over an extended period of time. This was a contributing factor to at least seven significant plant breakdowns of AMSA facilities across the country. These latter factors combined, clearly constituted a significant danger to the competiveness, including with respect to technology issues, of the domestic steel sector.

Notwithstanding this major constraint, progress has in fact been registered and will find reflection in significant new and collaborative approaches and platforms, which will place the sector on a firmer foundation going forward. These include the following;

• In September 2013 the Price Preference System for scrap metal was introduced, compelling all SA scrap dealers who wished to export scrap metal, to offer this firstly to local users at a pre-determined price less 20 percent. Export permits are only granted when ITAC is satisfied that there have been no offers from local users. Although this measure was widely supported, there have been challenges with the current system including resistance and circumvention by scrap dealers. Government is therefore examining options to introduce further measures to curtail the unencumbered export of scrap metal, cognisant of South Africa’s obligations under the World Trade Organisation and its bi and multi-lateral trade agreements. An announcement in this regard will be made in due course.
• Led by the Industrial Development Corporation (IDC) government has embarked on the Masorini Project, aimed at securing a multi-billion rand investment in a new steel production facility in SA, for both the local and regional market. The IDC has completed a pre-feasibility study and government is in discussions with a potential operating partner. The project is proceeding according to plan and the long time-lines commonly associated with a major investment of this type. The next phase in the project cycle will be to negotiate the terms and conditions for the investment, inclusive of those set out in the feasibility study, and involving technology specifications, the range of products to be produced; regulatory issues such as the Environmental Impact Assessment (EIA) requirements and the infrastructure support required for a multi-billion investment of this nature. Further announcements will be made in this regard in due course.
• Processes have reached an advanced stage to secure a competitive iron-ore advantage for local steel producers. the dti and DMR will define the conditions for the allocation of a significant mining right which will mean that a cost plus iron-ore advantage will be ‘passed through’ the steel production process to provide a competitive price advantage to downstream manufacturers.
• Government has also registered significant progress in its efforts to address a range of issues with Arcelor-Mittal (AMSA), in the context of far less favourable steel market conditions. Government is currently negotiating an integrated set of both policy and industry reform measures that would have to be adopted to achieve the objective of a sustainable steel industry in SA, inclusive of the specific needs and interests of the small steel producers and the downstream manufacturing sectors. In this context it is important that the independence and integrity of the processes underway involving the Independent Tariff Administration Commission (ITAC) and the Competition Commission, be respected. Working within these parameters and in close collaboration with the Economic Development Department (under whose authority both institutions fall), the dti will ensure that such supply side protective and support measures are conditional on a competitive pricing policy, increased levels of maintenance and investments, a potential rebate system that will support downstream manufacturers as well as transformation and BBBEE commitments. Announcements in this regard will be made in due course.

the dti is fully cognisant of the extremely adverse conditions in the global steel market characterised mainly by significant oversupply and declining demand and which, taken together with other factors summarised above, constitute a threat to the viability of the domestic steel sector.

Therefore as a first step in the broader process set out above, I have approved the ITAC recommendation for tariff increases on certain steel product lines. In addition a number of other applications for tariff protection and anti-dumping duties are in the pipeline and will be given urgent consideration in the context of a set of conditions set out in summary above and which are the subject of urgent and on-going consultation between all the stakeholders.

 

Reply:

1. (a) (i) (ii) (b) (i) (ii) (aa) (bb)

Residential accommodation for the Minister in Cape Town and Pretoria is provided for by the Department of Public Works therefore there are no additional costs relating to hotel or other accommodation.

Travel Cost	Number of Trips	Hotel Accommodation in Cape Town	Hotel Accommodation in Pretoria
R 75,372.00	15	R 0	R 0

(2) (a) (i) (ii) (b) (i) (ii) (aa) (bb)

Residential accommodation for the Deputy Minister in Cape Town and Pretoria is provided for by Department of Public Works therefore there are no additional costs relating to hotel or other accommodation.

Travel Cost	Number of Trips	Hotel Accommodation in Cape Town	Hotel Accommodation in Pretoria
R 119,175.00	20	R 0	R 0

Reply:

(1) According to the department’s travel records, officials undertook 769 official trips to Cape Town in the 2014/15 financial year, amounting to R3 567 438.00. The trips included the attendance of Parliamentary business as well as to attend other official engagements and duties. The department’s travel records do not differentiate between Parliamentary business and other official business. All costs incurred for air travel, car rental and accommodation was in line with National Treasury’s cost containment measures.

(2) For the 769 official trips the total amount spent on accommodation is R764 926.85 and the amount spent on car rental is R226 819.12.

 

 

Reply:

(A)   The Department of Trade and Industry (the dti) has a constitutional mandate to develop the agro-processing, sector with primary agricultural production the responsibility of the Department of Agriculture, Forestry and Fisheries (DAFF). Discussions regularly take place between the two departments and other stakeholders with respect to the supply and security of supplier of feed-stocks into agro-processing value-chains. To the best of the Departments knowledge no existing or future projected security supply concerns have been raised by stakeholders in this regard.

(b)  i and ii) Since the matter of ‘land capping’ is a constitutional mandate of the Department of Agriculture, Forestry and Fisheries, member D W Macpherson should address his question to the appropriate Minister.

Reply:

(a)  the dti and its entities define red tape as rules, regulations, and / or bureaucratic procedures and processes which are excessively complex and which impose unnecessary delay(s), inaction and / or costs which exceed their benefits, and / or is no longer effective in achieving the purpose for which they were originally created. Red tape results in undesirable economic, business and / or social impacts or outcomes as a result of negatively impacting on productivity. Red tape involves excessive, or unevenly enforced, regulation or rigid conformity to formal rules that is considered redundant or bureaucratic and hinders or prevents effective action or decision-making (Source: the dti & CoGTA Guidelines for Reducing Municipal Red Tape, 2012)

(b)  In the area of reducing regulatory constraints, the dti launched a red tape reduction programme in collaboration with the Department of Co-operative Governance to target local municipalities so that they could reduce administrative processes and regulations on small businesses. The programme has initially targeted 12 municipalities across the country. It is aimed at addressing unnecessary regulatory burdens in order for SMMEs to fully take advantage of business opportunities emanating from local Municipalities and beyond.

In addition, the Companies Act, 2008 has simplified the company regime in that it allows for a one man business to register as a private company and to then grow towards a big corporation or public company without the burden of re-registering.

Private companies are no longer required to file audited financial statements. Audits are only required from companies that have an economic impact due to the number of employees, turnover and extent of the business activities. Private companies can now file independently reviewed statements. Independent review is a quality assurance mechanism that is less stringent than a full scale audit which is more costly.

The Companies Act has also decriminalised compliance transgressions. The Companies and Intellectual Property Commission (CIPC) can now issue compliance notices in instances that were just defined as criminal offences under the previous companies Act of 1973.

the dti is also working on the integrated registration system which will be co-ordinated with SARS, and Statistics SA. Registration must be at one point and all entities that play a role must automatically access information from one central point.

(aa) These guidelines have been informed by the results of the 2011/2012 National Red Tape Reduction Piloting involving 12 municipalities and funded by the dti and CoGTA and with support from SALGA.

(bb) The SMME Payment Assistance Hotline facilitated payments to small businesses exceeding R350 million. This function has been transferred to the Department of Small Business.

Response from the Entities

Entity	(ii)(b)(i)	(ii)(b)(ii)(aa)	(ii)(b)(ii)(bb)
Companies and Intellectual Property Commission (CIPC)	Partnering with banks to offer integrated company registration and bank account services which enable customers to perform both activities through one process. To date company registration inclusive of Bank account openings have gone live with FNB and Standard Bank
Export Credit Insurance Corporation (ECIC)	The ECIC has implemented processes to ensure that there are efficient processes to allow for quick turnaround times in order to implement the mandate	Process reviews are initiated whenever bottlenecks are identified, there is currently a process underway to review the procurement process, delegation matrix and there are initiatives that are underway such as ERP system to improve business processes.
National Credit Regulator (NCR)	The NCR has a delegation matrix which outlines approval/authority limits. The limits are limited to the Accounting Authority; CEO; Executive Committee; CFO and Managers. This matrix helps with expediting decision making and implementation.
National Consumer Tribunal (NCT)	The NCT assesses applications filed with it against the filing requirements contained in its rules to ensure that filings meet the requirements as set and advises filing parties if any requirements were not met. This ensures that matters adjudicated on by the Tribunal, meets the filing requirements and that the matters can be dealt with at a hearing. In addition, the NCT conducts regular workshops with all its stakeholders to ensure that all parties are aware of the specific requirements set by legislation to assist in speedy resolution of cases. The NCT does not enforce any other processes over and above what is required by legislation.	Not applicable, as the NCT does not enforce any process over and above filing requirements set by legislation in order for matters to be adjudicated on, therefore no additional red tape created.	Not applicable, as the NCT does not enforce any process over and above filing requirements set by legislation in order for matters to be adjudicated on, therefore no additional red tape created.
National Empowerment Fund (NEF)	As a national development finance institution the NEF was established to be a driver and thought leader in promoting and facilitating black economic participation through the provision of financial and non-financial support to black empowered businesses, as well as to promote a culture of savings and investment among black people. In its quest for excellence the NEF has adopted a Strategy referred to as the NEF Power of 3, which strives to achieve and is anchored on answering telephonic enquiries within 3 rings; returning client calls within 3 hours; attending to walk-in clients within 3 minutes; taking up to a maximum of 3 months to fully assess applications for funding from application to disbursement of funds to clients; resolving complaints within 3 days and acknowledging receipt of all applications within 3 days.	The NEF identifies the market failures that confront black entrepreneurs as follows: Limited own capital; Limited management skills, including financial, marketing and technical expertise; Limited access to affordable capital; Lack of accurate and reliable financial information; Challenges with compiling good-quality business plans; Lower bargaining and strong competition from established businesses with entrenched market dominance, and Lack of access to local and international markets.	The NEF continuously reviews its application processes to see how it can help reduce what is commonly referred to as turn-around times. In pursuit of the quest for excellence management has been given delegation of authority by the Board of Trustees to introduce a number of interventions that will enable entity to reduce red tape, namely: Introduction of a Credit Committee that sits daily/weekly depending on the number of applications to be considered for approvals ranging from R250,000 up to R1.5 million; Greater empowerment to senior managers heading business units to decide on due diligences on deals at a higher threshold. For example Managers can perform due diligences on deals up to R10 million, whereas in the past this was limited to R3 million; The Investment Committee that constitutes Senior Managers chaired by EXCO members [Fund Management Investment Committee (FMIC)] convenes on a weekly basis and can approve transactions of up to R5 million; The EXCO Investment Committee, which is chaired by the CEO, meets weekly and can approve up to R15 million deal sizes; The Post-Investment Monitoring Committee, chaired by the General Counsel (EXCO member), has the delegated authority to approve “head-room” facilities equivalent to 10% of total approved amounts into existing investee companies. These amounts will ensure that where businesses face a cash-flow crunch, these amounts can be deployed immediately to address challenges faced by entrepreneurs on a daily basis as they are unable to attract private sector short-term facilities from commercial banks, such as overdraft and bridging facilities by virtue of them lacking a trading history. Finally, in compliance with Treasury Regulation 8.2.3 which requires public entities to unless specifically provided in contract with a service provider, pay creditors within 30 days of the invoice being presented. The NEF conducts regular interactions with both staff and service providers to train them on the NEF’s internal process requirements. The NEF further conducts annual audits aimed at determining progress in ensuring that creditors are paid within 30 days. Based on the latest internal audit findings, the NEF’s control framework was found to have been satisfactorily applied through the period to ensure that creditors are paid on time.
National Gambling Board (NGB)	Rules and regulations are in place within the NGB. The understanding is that actions and decisions taken by public officials are subject to oversight through monitoring adherence to rules and regulations so as to guarantee that there is reporting and accountability to demonstrate that Government initiatives are met.	Internal controls are in place within the NGB to ensure that the various pillars of Governance are in place.	Areas of non- compliance with rules and regulations will give rise to adverse audit finding by the office of the Auditor General. On this basis no specific interventions have been implemented to reduce red tape or to do away with any rules and regulation
National Lotteries Commission (NLC)	The amendment of the Lotteries Act allows for the allocation of differentiated grants. This means that organisations applying for smaller grants will have fewer and less stringent requirements to be met in order to be considered for a grant from the National Lottery Distribution Trust Fund (NLDTF). The amended Act also makes provision for full time Distributing Agencies, appointed for a period of five years, to adjudicate on applications for funding. This is envisaged to improve turnaround times. The Lotteries Act also requires the process from application to adjudication to be a maximum of 150 days. The National Lotteries Commission can only put this to the test once the full time Distributing Agencies have been appointed. The National Lotteries Commission is committed to pay all grants within the prescribed 60 days of receiving duly compliant grant agreements. In recent years, the NLC has engaged with its stakeholders through its National Indabas, and Provisional Workshops and Help Desks by interacting and educating prospective applicants on the application process. It is also an opportunity to learn of the challenges faced by stakeholders. This has resulted in the doubling of the applications received by the NLC in the last call for applications. The NLC has established offices in each of the provinces to give greater access to applicants and beneficiaries.
National Metrology Institute of South Africa (NMISA)	In the case of NMISA there is no deliberate implementation of red tape. The organisation is structured as a flat organisational structure with clear delegations of authority to enhance efficiency in operations and eliminate complexity. This is especially emphasised for areas where there is direct contact with the clients at service delivery points such as the signature of calibration certificates to industry. This is delegated to divisional directors and experts. The accreditation the quality standard ISO 17025 and ISO Guide 34 ensures that red tape is avoided when dealing with the public and clients.
National Regulator For Compulsory Specifications (NRCS)	There are procedural guidelines in various business units to deal with the processing of applications.	Applications for various forms of authorization are recorded upon receipt and when finalised.	When the backlog is identified, manpower is increased by using field inspectors and overtime is offered to all inspectors available to work.
South African Bureau of Standards (SABS)	The SABS has 5 main service delivery programmes. Standards Development and Promotion Certification Testing Training Academy, and SABS Design Institute	An improvement request query (IRQ) system is used to systematically manage customer feedback and complaints regarding the accessibility and quality of the SABS services; Customer satisfaction surveys are occasionally commissioned to assess the customer experience; Deloitte Fraudline that customers use to report issues that point to red tape; and The SABS internal audit process, which includes the management of accreditation for conformity assessment services.	The SABS has is in the process of implementing a number of systems to improve productivity and through these processes, the opportunities to reduce red tape are implemented. The systems include: The Laboratory Information Management System (LIMS) for managing laboratory testing processes; e-Committee for management of standards development committees and projects; and The Automation of Certification Business Process. In addition, the SABS is embarking on a modernisation programme (through ICT) whose roadmap is currently under review at the Board.
South African National Accreditation System (SANAS)	As accreditation requires strict compliance to international standards, the lack of clearer communication was identified as the main contributor to perceived red tape. In this regard, SANAS conduct annual Communication meetings with its customers as well as increased its print communication to monthly and quarterly reports.	Identification comes through Internal Audits as well as international peer reviews.	The second phase of the SANAS Shanduka project aimed at automating the accreditation administration process through ICT, will contribute towards minimising the time and information required to apply for accreditation.
National Consumer Commission (NCC)	The NCC has revised its strategy during the latter part of 2012 with a view to improving service delivery in line with its legislative mandate. Internal controls, policies, standard operating procedures, delegations of authority and charters have been put in place relating to compliance with applicable legislation, policies, directives and decision making.	Delivery as per the annual performance plan is monitored regularly at which monthly performance and financial reports are canvassed. Executive Committee meetings are held at least once every quarter at which management committee reports, amongst other things, are canvassed. Moreover, regular meetings are held with stakeholders. Decisions impacting on the public are disseminated via the various media. Internal controls, policies, standard operating procedures, delegations of authority and charters are revised regularly in order to improve operations and service delivery.	The NCC has recently developed its Service Delivery Improvement Programme (SDIP) which provides for turnaround times for the majority of services. This is monitored on an ongoing basis by the management and executive committees of the NCC.
Companies Tribunal (CT)	The requirements and procedures for filing of applications and complaints are determined by the Companies Act 71 of 2008 and Companies Regulations made in terms of the Act. Companies Tribunal produced the Practice Guidelines for filing of applications for adjudication and Alternative Dispute Resolution (ADR) complaints to simplify the procedures.

 

Reply:

South Africa has an industrial sector characterised by pockets of sophisticated manufacturing capabilities which have developed over several decades to service the mining sector and a relatively small domestic consumer market.

However, in the early 1990s the Apartheid-state agreed to a far-reaching overhaul of South Africa’s trade policy regime with deep tariff cuts over a relatively short period, impacting a broad swathe of manufacturing subsectors. It is noteworthy that the Apartheid-state declared South Africa a Developed Country for the purposes of the World Trade Organisation (WTO) thereby subjecting South Africa to a far deeper tariff liberalisation episode compared to other developing countries.

These deep tariff cuts have led to a significant increase in imports of especially value-added goods while the commodity ‘super-cycle’ of the mid-2000s encouraged the rapid expansion of mineral commodity exports.

By the time the global financial crisis struck in late 2007, the limits of the above growth trajectory were becoming apparent. South Africa was fortunate that Government had already identified the risks associated with this growth trajectory and a National Industrial Policy Framework (NIPF) and the first Industrial Policy Action Plan (IPAP) had already been developed.

The NIPF and IPAP’s are focused on fundamentally changing the structure of our economy towards a more value-adding and inclusive growth trajectory. In the process, several levers have been deployed to facilitate industrial development.

These include industrial financing in the form of incentives from the dti and industrial loans mainly from IDC; localisation through public procurement; and a wide range of sectoral interventions which have sought to deepen and widen our industrial capabilities.

It is important to note at the outset that industrialisation cannot be achieved through the implementation of isolated interventions in a single year. Rather, industrialisation requires the implementation of a range of interventions over the medium-term to change the structure of the economy. The global economic context can constrain or encourage these developments.

Progress made on the re-industrialisation programme:

Examples of progress will be drawn from Automotives; Clothing, Textiles, Leather and Footwear; Green industries; Agro-processing; industrial financing, and procurement.

Automotive industries:

All the major automotive OEM’s are operating in SA - Mercedes Benz, BMW, Volkswagen, Toyota, General Motors, and Ford and the new players include Iveco (Italy), Tata (India), BAW (China), FAW (China) and Hyundai (South Korea). With the policy certainty which Government has provided, the private-sector has invested over R25,7bn over the last 5 years, sustaining about 300,000 jobs. Auto exports exceeded R100bn for the first time in SA’s history in 2014.

Clothing, Textiles, Leather & Footwear:

In order to stabilise the sector, the Clothing and Textiles Competitiveness Programme (CTCP) was introduced in 2010. The Manufacturing Value-addition increase attributable to the CTCP between the base of 2009 and 2014 is R3.9 billion. About 68,000 jobs have been retained in the sector and 6,900 jobs created.

Metal Products, Engineering & Capital Equipment:

Preferential procurement and sector designations have been critical to the development of this value chain. For example, the designation of valves has led to foreign investment by Denmark AVK which has acquired South Africa’s Premier Valves Group (PVG) for R100 million. US technology multinational General Electric (GE) announced a R700 million commitment designed to support innovation, enterprise- and skills-development in South Africa. Grindrod unveiled its cost-effective shunting and short haul locomotive in October 2014.The locomotive boasts 80% local content, and is already being exported to a number of African countries.

Green Economy:

The dti has strengthened the local content requirements for renewable energy. It progressed from a threshold of 25% in bid window 1 to a threshold of 40% in bid window 4. These local content requirements have resulted in a number of new investments in local manufacturing:

SMA Solar Technology South Africa, officially launching its multi-million Rand manufacturing facility in Cape Town and Jinko Solar opening its R80 million plant.

Agro-processing:

Since 2009 we have supported Agro-processing industries to the value of R1.2 billion through various schemes such as the Manufacturing Competitiveness Enhancement Programme (MCEP) and the Enterprise Investment Programme (EIP). Coega Development Corporation and the dti have partnered to create an R86 million Agro-processing facility within the Coega IDZ. the dti and JSE-listed Astral Foods partnered in a R200 million feed mill in Standerton to boost South Africa’s agriculture sector.

Industrial Finance:

The Manufacturing Competitiveness Enhancement Programme in Financial Year (FY) 2014/15 approved 236 enterprises for funding with a total grant value of R1,1bn. This has leveraged private-sector investment of R3,7 billion in support of 28,093 jobs.

Under the 12i Tax Allowance, 17 enterprises were approved for funding with a total tax allowance of R2,7bn in FY 2014/15. This has leveraged private-sector investment of R6,7bn in support of the creation of approximately 4,500 jobs.

The Enterprise Investment Programme – for FY 2014/15, 39 enterprises were approved for funding with a total grant value of R147m. This has leveraged private-sector investment of R1,3bn in support of the creation of approximately 1,500 jobs.

The National Empowerment Fund (NEF) approved 549 transactions worth more than R5.4 billion for black-empowered businesses across the country, supporting over 47,000 jobs.

The Industrial Development Corporation (IDC) approved projects to the value of R7,7 billion with 6,899 jobs created and 4,668 jobs saved between April 2014 and December 2014

Procurement localisation (designations):

Given the R3,6 trillion infrastructure build programme, failure to designate would lead to substantial import leakages and a missed industrialisation opportunity. In total 16 products or sectors have now been ‘designated’ for localisation in government procurement.

PRASA has awarded a tender to Alstom for the manufacturing of 7,224 coaches at a projected cost of R123bn to be built between 2015 and 2025, the initial phase is estimated to create over 8,000 direct jobs.

As part of this deal, PRASA and Gibela Rail Transportation signed a contract to supply the state agency with 600 commuter trains (3,600 coaches) valued at R51 Billion.

Transnet has awarded a total of R50bn in contracts to CSR Zhuzhou Electric Locomotive, CNR Rolling Stock SA, Bombardier Transportation SA and General Electric SA to build 1,064 electric and diesel locomotives in SA. All but 70 locomotives, will be built in Transnet Engineering’s plants in Pretoria & Durban.

Pharmaceuticals:

Four pharmaceutical companies were jointly awarded a R10 billion tender to supply the Department of Health with antiretroviral (ARV) medication from 1 April 2015 to 31 March 2018. The tender had a conditional provision for designation of up to 70% of the tender volume for domestic manufacturers. DoH announced the tender valued at R14 billion of which 61.6% was won by companies that have manufacturing plants in SA.

Reply:

The Bilateral Investment Treaty between South Africa and Zimbabwe is a negotiated Agreement. Furthermore, it is unusual for Agreements of this nature to have retrospective application as the guiding principle is that parties enter into such agreements with a view to addressing future events.

 

(2)Whether he intends to take steps to promote the rights, and claim compensation for the losses, of South African citizens who have been prejudiced by the Zimbabwean government and/or illegal occupiers before the commencement of the agreement; if not, why not, seen against the background of the Bill of Rights contained in the Constitution of the Republic of South Africa, 1996, and relevant international law; if so, what are the relevant details;

Reply:

The Republic of South Africa is responsible for enforcing rights and obligations within its own territory. Any events that take place outside the borders of the Republic are extra-territorial and remedies or redress would have to be sought in the jurisdiction where prejudice occurred. The Bill of Rights contained the Constitution of the Republic is applicable only in South Africa and has no application in Zimbabwe. The South African Government is addressing concerns of South African investors as and when they arise through the diplomatic and multilateral channels available bilaterally and regionally.

(3)Whether he is considering legislation to bring about compensation for such disadvantaged people by way of making the confiscation of assets of the Zimbabwean government and/or responsible ministers and/or officials in South Africa possible; if not, why not, seen against the background of the Bill of Rights, as contained in the Constitution of the Republic of South Africa, 1996, and relevant international law; if so, what are the relevant details;

Reply:

The dti respects the independence and competence of the judiciary to make determinations in that regard.

(4)What steps is he taking regarding the current unlawful dispossession of South African citizens’ property rights in Zimbabwe by the Zimbabwean government and/or illegal occupiers?

Under the Bilateral Investment Treaty concluded with Zimbabwe in 2009 and ratified in 2010, investors affected by measures taken by the Zimbabwean State can, after challenging such a matter in domestic courts, resort to international arbitration in order to settle any dispute. No further steps can be taken by the Government of the Republic of South Africa in that respect as the international arbitration process is independent and the rulings thereof are binding.

Reply:

(1)(a) The process of establishing the Broad-Based Black Economic Empowerment (B-BBEE) Commission is underway. The department has submitted to National Treasury the Medium Term Expenditure Framework (MTEF) budget request for both financial and human resource capital.

(1)(b) The Minister of Trade and Industry, in terms of section 13C of the B-BBEE Act, 2003 (Act No. 53 of 2003), as amended by the B-BBEE Amendment Act 46 of 2013, has consulted with the relevant Portfolio Committee of the National Assembly and the relevant Select Committee of the National Council of Provinces regarding the appointment of the BEE Commissioner.

The Minister is pleased to announce that Ms Zodwa Ntuli has been appointed as the acting BEE Commissioner.

Reply:

The Bilateral Investment Treaty between South Africa and Zimbabwe is a negotiated Agreement. Furthermore, it is unusual for Agreements of this nature to have retrospective application as the guiding principle is that parties enter into such agreements with a view to addressing future events.

 

(2)Whether he intends to take steps to promote the rights, and claim compensation for the losses, of South African citizens who have been prejudiced by the Zimbabwean government and/or illegal occupiers before the commencement of the agreement; if not, why not, seen against the background of the Bill of Rights contained in the Constitution of the Republic of South Africa, 1996, and relevant international law; if so, what are the relevant details;

Reply:

The Republic of South Africa is responsible for enforcing rights and obligations within its own territory. Any events that take place outside the borders of the Republic are extra-territorial and remedies or redress would have to be sought in the jurisdiction where prejudice occurred. The Bill of Rights contained the Constitution of the Republic is applicable only in South Africa and has no application in Zimbabwe. The South African Government is addressing concerns of South African investors as and when they arise through the diplomatic and multilateral channels available bilaterally and regionally.

(3)Whether he is considering legislation to bring about compensation for such disadvantaged people by way of making the confiscation of assets of the Zimbabwean government and/or responsible ministers and/or officials in South Africa possible; if not, why not, seen against the background of the Bill of Rights, as contained in the Constitution of the Republic of South Africa, 1996, and relevant international law; if so, what are the relevant details;

Reply:

The dti respects the independence and competence of the judiciary to make determinations in that regard.

(4)What steps is he taking regarding the current unlawful dispossession of South African citizens’ property rights in Zimbabwe by the Zimbabwean government and/or illegal occupiers?

Under the Bilateral Investment Treaty concluded with Zimbabwe in 2009 and ratified in 2010, investors affected by measures taken by the Zimbabwean State can, after challenging such a matter in domestic courts, resort to international arbitration in order to settle any dispute. No further steps can be taken by the Government of the Republic of South Africa in that respect as the international arbitration process is independent and the rulings thereof are binding.

Reply:

In the 2013/2014 year 1084 companies received financial assistance to participate in 25 National Pavilions and 40 Trade Missions. Export sales of R3,54 billion were facilitated. The sectoral spread of the companies supported comprises 42% to Multiple sectors; 25% to agro-processing; 8% to the Aerospace, Rail, Marine and Defence Sector; 6% to Electro technical; 6% to the Built Environment Sectors; 4% to the creative Industries; 3% to the Auto sector; 6% to Mining and Capital Equipment.

During the 2013/2014 period, the provincial spread comprises as a percentage the following: 45% from Gauteng; 27% from Western Cape; 10% from KZN; 5 % from International participants 4% from Limpopo; 3% from Mpumalanga; 3% from Eastern Cape; 3% from Mpumalanga and the remaining portion being attributable to the rest of the provinces at 1% each.

In the 2014/2015 year 923 companies received financial assistance to participate in 27 National Pavilions and 24 Trade Missions. Exports sales of R2,77 billion were facilitated. The sectoral spread of the companies supported comprises 30% to agro-processing; 40% to Multiple sectors; 7% to the Aerospace, Rail, Marine and Defence Sector; 7% to Capital Equipment; 7% to the Electro technical sector; 5% to the Auto sector; 4% to the creative Industries.

The provincial spread comprises a percentage spread as follows: 40.4% from Gauteng, 30.77% from Western Cape, 10.51% from KZN, 8,13% from International participants and the remaining portion being attributable to the rest of the provinces at less than 2% each.

The detailed breakdown for each financial year is attached in Annexures A and B.

Question

(2) whether the trip resulted in new contracts for those companies;

Response

In various instances the trips do yield sales contracts, joint venture partnerships or sub-contracting projects for South African companies. The value thereof is included in the total export sales facilitated which are detailed in part 3 of this response. A few examples of sales that have been facilitated through the trade shows in the 2014/2015 financial year include but are not limited to the following:

At SIAL China, export orders of R1.3 billion were generated as a result of the participation of South African companies. For example the company Dynamic Commodities from the Eastern Cape, reported that it generated R53 million worth of export business.

At the WAPIC Trade Fair in Nigeria, 18 South African companies exhibited their products and services. The Gauteng based exhibitors which include Powertech, Landis + GYR Pty Ltd, General Cables, ADC Energy, Poynting Antennas and Doble Engineering Africa reported expected product and service sales of R112 million as a result of their participation.

At the Ghana International Trade Fair (GITF) Aveng Africa from the Gauteng province, reported that it has signed a joint venture investment that is worth in excess of R12 billion.

During an Outward Selling Mission to The Netherlands, Redsun Raisins from the Northern Cape, reported export sales totalling R16,6 million.

After a special mission to Russia, Sea Harvest based in the Western Cape received an order of $10 million for hake and hake related products from a Russian company.

Question

(3) does his department monitor the effectiveness of this support programme to ensure that (a) his department is getting value for money and (b) recipients do not waste the financial support they receive? NW3313E

Response

The division monitors the effectiveness of the support programme through questionnaires that are completed by business participants at the end of each mission and National Pavilion. This questionnaire focuses on the sales that have been made at the event as well as the projected sales that are anticipated in the next six months. After a period of six months the same participants provide information that confirms the projected sales and / or additional export sales that may have accrued to the company during the period. In addition, the dti also utilises the services of an independent auditor who verifies the reported export sales as well as the local content of the manufactured products.

In addition the Department of Public Monitoring and Evaluation has recently assessed the effectiveness of the EMIA scheme and has recommended that this instrument be continued to facilitate Trade and Investment Missions and National Pavilions.

In the 2013/2014 period the cost of EMIA assistance of R113 million yielded R3,54 billion of export sales facilitated. In this regard, for each R1.00 spent, there was a R30.54 return. For the period of 2014/2015, the cost of EMIA assistance of R147 million yielded R2,779 billion of export sales. In this regard, for each R1.00 spent, there was a R18.90 return.

The financial support is in the form of full or partial payments to service providers for hotels, accommodation, transport, freight logistics, venue hire and space allocation at exhibition. To avoid potential wastage, the only direct payments that occur between the dti and the participants are in the event where a business participant has been pre-approved to claim for expenses which they had paid directly to service providers. The claims thresholds are governed by the EMIA rules which are signed off by the Minister and implemented through an adjudication committee.

Furthermore the financial support to companies is qualified according to the following categories: Emerging Exporters receive 100% funding towards an air ticket, subsistence and ground transport; SMMEs air ticket limited to R17,000.00 and subsistence limited to R2 300.00 per day; Other sized companies qualify for freight and stand in the case of a National Pavilion. For the same other-sized companies, the air ticket finance cannot exceed R8 500.00 and the subsistence of R2 300.00 per day. In addition for the Trade and Investment missions, all companies qualify for an R2000.00 allowance for excess baggage on exhibition material.

Reply:

(a) and (b) the dti has conducted extensive consultations with key stakeholders as part of the Black Industrialist Policy development process. Such Stakeholders include Cabinet Committee, MinMec, Business, Development Finance Institutions, State Owned Enterprises and NEDLAC. The inputs from these Stakeholders have been considered in the development of the Black Industrialist Policy (BIP) which is en route to Cabinet for consideration and approval. No applications have been approved as the application process for the BIP has not as yet been finalized.

(2) What are the names of all those (a) who have applied for support under the specified programme and (b) whose applications have been approved to date?

Response:

(a) None, the Black Industrialist Programme has not yet approved by Cabinet.

Reply:

 

(a) The department continues to engage in discussions and deliberations with National Treasury on this matter.

(b) The engagements concern the anticipated increase in applications in the extended period up to December 2017.

Reply:

1. (a) – (b) (i)-(ii) Numerous engagements were held with PRASA and the Department of Transport (DOT) on both locomotives and coaches procurement to ensure that localisation requirements are fulfilled. Significant inputs were provided on the capabilities of the domestic rolling stock manufacturing sector including comprehensive information on components that should be localised. Efforts to maximise local content are on-going.

The locomotives procurement has been subjected to the National Policy Industrial Participation (NIPP) Programme and discussions on the development of offset projects are advanced. Further, the dti participated in the Rail Inter-Departmental Committee chaired by the DOT so as to provide support and inputs on how the coaches’ procurement can be leveraged to resuscitate and enhance the rail manufacturing capacity and capability.

In addition, engagements with the winning bidder of the coaches tender (Gibela Consortium) are continuing. The contract has provided the department with the opportunity to offer the various incentive programmes to the rolling stock manufacturing firms in order to enable the necessary investments to improve the competitiveness and to meet the Original Equipment Manufacturers’ requirements.

2. The procurement of both coaches and locomotives were not subject to the designation process as the request for proposals were issued before the issuance of the National Treasury Instruction Note ,that provides guidelines for the invitation and evaluation of bids for the procurement of rolling stock sector. This instruction note only came into effect on the 07 December 2011. It is for this reason that the locomotive procurement is subjected to the offset obligation programme as indicated above. Although the designation had not been effected on the coaches’ procurement, the dti played a critical role to ensure the draft policy framework on local content was incorporated into the extensive procurement processes driven by DoT and PRASA, hence the coaches’ tender was issued with a minimum local content of 65%.

 

Reply:

1. and (2)

The National Treasury recently circulated proposed draft amendments to the Preferential Procurement Policy Framework Act (PPPFA) Regulations, 2015 for comment. The Department of Trade & Industry (the dti) has since responded officially to the draft amendments to the Regulations through the Office of the Director-General.

In the main, the dti confined its comments to the preference point system, Broad-Based Black Economic Empowerment (B-BBEE) and local content. The substance of the comments is contained in the Submission to the National Treasury. An official response is awaited from the National Treasury.

Furthermore the dti has requested a further engagement with the National Treasury to support and clarify its comments, if the need arises. The position of the dti is that public procurement is an important industrial policy instrument and should be appropriately enshrined in any amendments to the Regulations of the Preferential Procurement Policy Framework Act in combination with other policy objectives, inclusive of broad-based black economic empowerment.

Reply:

(1) the dti has received a total of 1864 applications from 2012 to date requesting exemption letters for the importation of raw materials which are not readily available in South Africa. These raw materials include polyester, nylon, acrylic fibres and textiles dyes and chemicals. The fibres are converted into finished products after manufacturing the yarns and fabrics in the country. Some technical fabrics which were imported in 2012 are now being woven in the country using high performance yarn like aramid yarns and high performance continuous filament polyester and nylon yarns.

(2) The turnaround time for responding to applications is 48 hours maximum due to high volumes received on a daily basis. The turnaround time is within 24 hours if all documentation including supporting letters from suppliers is provided with the applications.

(3) the dti established the South African Sustainable Textiles and Apparel Cluster (SASTAC) through the Clothing and Textiles Competitiveness Programme (CTCP) in close collaboration with all stakeholders. SASTAC is undertaking a comprehensive audit of textile manufacturing capacity and capabilities in the country, amongst other programmes. It is also in the process of developing a website which will make this information, inclusive of traceability, available to both Government entities and any potential supplier to government.

Reply:

1-4 Government promulgated the revised Integrated Resource Plan for Electricity 2010 - 2030 (IRP2010) in March 2011. The IRP made provision for 9.6 gigawatts of nuclear capacity expansion.

The Department of Trade and Industry (the dti) chaired the Nuclear Energy Sub-Working Group (NESWG) on Localisation, Industrialisation and Skills Development, with key economic departments and state owned companies (SOC) as participants, in support of the Nuclear Energy Working Group (NEWG).

The NESWG on Localisation, Industrialisation and Skills Development submitted its reports to the Department of Energy (DoE) dealing with all matters assigned to it.

All documents of the NESWG are classified as Top Secret and are in the possession of the DoE.

The Minister and Department of Energy have a constitutional mandate for national energy and energy related matters, inclusive of nuclear energy. Requests for programme specific information should therefore be directed to the Minister of Energy.

 

Reply:

a) i) The National Regulator for Compulsory Specifications (NRCS) ensures that all new vehicle models and certain safety critical replacement components that fall within the domain of its compulsory specifications and specific provisions of the National Road Traffic Act (Act 93 of 1996), comply with all relevant requirements before they are offered for sale in South Africa. The NRCS is mandated to ensure new manufactured and imported regulated products are in compliance with the set requirements. In addition to this initial approval, market surveillance activities ensure that manufacturers and importers that offer products for sale, continually comply with the requirements, after initial approval has been granted. Product samples are inspected during the approval process. During its market surveillance activities, the NRCS may sample products to confirm compliance.

a) ii) The NRCS is not responsible for roadworthiness of vehicles and components in use during the life cycle of the product. This obligation resides with the National Department of Transport and the National Road Traffic Act.

a.a (and b i, ii and iii):

In the 2012-13 period 5867 products were approved as they met with the requirements of the relevant compulsory specifications. Test reports from accredited laboratories independent of the NRCS, confirmed the compliance of these products. In addition, 4326 market surveillance activities confirmed compliance of products to the relevant compulsory specifications. There were no instances of non-compliance confirmed in 20 samples where non- compliance was suspected. Samples of trucks, tow-bars, brake friction material, replacement glass and lights were verified against the requirements of the compulsory specifications at the time of approval and during market surveillance. Test conditions are specified in the relevant standard referred to in the compulsory specification for a particular product.

a.b and b i; ii and iii):

In the 2013-14 period 5800 products were approved as they met with the requirements of the relevant compulsory specifications. Test reports from accredited laboratories independent of the NRCS, confirmed the compliance of these products. In addition, 4054 market surveillance activities confirmed compliance of products to the relevant compulsory specifications. There were 9 non-compliant products confirmed in sample testing where non-compliance was suspected. Relevant sanctions were imposed on these clients. Samples of tow-bars, brake friction material, replacement glass and lights were verified against the requirements of the compulsory specifications at the time of approval and during market surveillance. Test conditions are specified in the relevant standard referred to in the compulsory specification for a particular product.

a.c and b I; ii and iii):

In the 2014-15 period 3602 products were approved as they met with the requirements of the relevant compulsory specifications. Test reports from accredited laboratories independent of the NRCS, confirmed the compliance of these products. In addition, 4511 market surveillance activities confirmed compliance of products to the relevant compulsory specifications. There were no instances of non-compliance confirmed in 19 samples tested where non- compliance was suspected. Samples of trucks, tow-bars, brake friction material, replacement glass and lights were verified against the requirements of the compulsory specifications at the time of approval and during market surveillance. Test conditions are specified in the relevant standard referred to in the compulsory specification for a particular product.

In terms of the NRCS Act: Act No 5 of 2008, the sanctioning process is an internal mechanism used by the Regulator to prevent the entry of non-compliant products into the market. However, such information specific to the company/client cannot legally be made public.

Reply:

THE NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

 

The National Export Advisory Council (NEAC) will facilitate access to targeted international markets by prioritising the resources and supporting the exporters to enter foreign markets and service continental infrastructure projects. NEAC will facilitate the eradication of trade barriers in the targeted markets (as informed by the Export Diversification Strategy) whilst dealing with the developmental issues as defined by the “four gear concept” of the International Trade Center, which places emphasis on the developmental impacts of the export sector and its synchronicity with the national development goals

The NEAC structure will provide direction, co-ordination and oversight in order to enhance the trade and business environment and improving the competitiveness of companies and sectors. The NEAC approach is modelled on ITC’s Four Functional Gear Concept of Competitiveness and Development which informs the draft Integrated National Export Strategy (INES). The four gears comprise 1) Border-in or supply-side issues dealing with capacity development, capacity diversification, skills and entrepreneurship development; 2) Border or business environment dealing with infrastructure, trade facilitation and cost of doing business; 3) Border-out or demand-side issues dealing with market access, in-market support and strategic export promotion; and the developmental issues such as export-related employment, transformation efforts and regional development. The three competitiveness gears of should reinforce other each, whilst powering the 4) developmental gear resulting in a combined competitiveness-development focus for the country. The NEAC structure will deal with all four gears in unlocking regulatory or institutional bottlenecks in order to improve competitiveness and drive exports.

Question

(2) (a) who are the members that serve on the specified council and (b) how were they chosen;

Response

(2) (a) NEAC will comprise the Ministries involved directly or indirectly in the export development and export promotion regulatory and policy framework, State Owned Enterprises, 5 Proxies of Export formations (including Export councils, Export clubs, Joint Action Groups, Industry associations, Chamber of Commerce) Business Unity South Africa, Black Business Council, Provincial Investment and Promotion Agencies etc.

(2) (b) The aforementioned members are recommended on their respective roles in advancing the national export agenda contributing to the realization of the National Development Plan and New Growth Path imperatives.

Question

(3) what remuneration will each council member receive;

Response

(3) The remuneration package of the council member are not determined as yet as we are awaiting the finalisation of the Regulatory Impact Assessment for the establishment of the National Export Development and Promotion Bill, the outcome thereof will inform the modality of NEAC.

The Bill which is being explored will provide for the establishment of structure/s with the functions to represent and promote the interests of the export community and to advise national, provincial and local spheres of government on policy imperatives in order to advance the national export agenda.

Question

(4) what costs will be incurred by the specified council to do its work;

Response

The costs have not been determined for the aforementioned reason (Awaiting the outcome of the National Export Development and Promotion Bill that will inform the modality of NEAC and the needs of the potential beneficiaries).

Question

(5) has (a) a business plan and (b) key objectives been developed for the specified council; if so, what are the relevant details in each case? NW2956E

Response

(5) (a) A business plan will be compiled upon the conclusion of the Regulatory Impact Assessment for the establishment of the National Export Development and Promotion Bill. It will be important to consider the proposed structure within a national responsive institutional framework in order to address the current fragmentation and the on-going strengthening of NEAC’s capacity.

(b) The key objectives of the council will be developed upon the conclusion of the Regulatory Impact Assessment for the establishment of the National Export Development and Promotion Bill.

Reply:

Response from the Department

(a) (i) (ii) (aa) (bb) (cc)

Advertising Cost: 2012/13

The annual advertising cost per newspaper per financial year is indicated in the table below:

Newspaper	2012/13 Financial Year	2013/14 Financial Year	2014/15 Financial Year
Sowetan	R1 283 046.88	R1 146 164 .88	R511 733.97
Daily Sun	0	0	0

Response from the Entities

Entity	b (i)(aa)	b (i)(bb)	b (i)(cc)	b(ii)(aa)	b (ii)(bb)	b(ii)(cc)
Companies and Intellectual Property Commission (CIPC)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
Export Credit Insurance Corporation (ECIC)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
National Credit Regulator (NCR)	R 237 304	R 244 263	R 209 111	R 149 136	R 496 540	R 109 470
National Consumer Tribunal (NCT)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
National Empowerment Fund (NEF)	R 135 254.40	R 111 960	R 657 600	R63 354	R 6 960	R 37 040
National Gambling Board (NGB)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
National Lotteries Commission (NLC)	R 56 363	R 461 183	R 438 039	R 78 229	Not Applicable	R 112 783
National Metrology Institute of South Africa (NMISA)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
National Regulator For Compulsory Specifications (NRCS)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
South African Bureau of Standards (SABS)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
South African National Accreditation System (SANAS)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
National Consumer Commission (NCC)	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
Companies Tribunal (CT)	Not Applicable	Not Applicable	R 77 278.65	Not Applicable	Not Applicable	Not Applicable

Reply:

(1) The initial Regulatory Impact Assessment (RIA) was conducted to inform the liquor policy review process, and as the policy consultation process continues, assessment continues. RIA serves as an internal tool for government policy development process, and assessment of the cost to the economy is a component of the RIA process. The final RIA report will as submitted with the final liquor policy review document to Cabinet as per process, and the Liquor Amendment Bill will be introduced into Parliament thereafter.

(2)(a) Legal consideration has been applied to all proposals that are made in the liquor policy review document that has been published for public consultation. The proposal regarding suspension or revocation of a trading licence is intended to give the powers to effectively enforce conditions of the licence as per section 13 of the Liquor Act. Suspension or revocation of a licence will be an option available after all remedies within the Act, such as compliance notice, have been exhausted to achieve compliance.

(b)(i) No amendment will be made to the Broad-Based Black Economic Empowerment Amendment Act, Act 53 of 2003 as there is no need for such amendment.

(ii) No amendment will be made to the Broad Based Black Economic Empowerment Act, Act 46 of 2013 as there is no need for such an amendment. There is a need for the liquor legislation to be amended to empower authorities to enforce adherence to the Broad-Based Black Economic Empowerment Amendment Act, and its codes, whatever the form.

(3) The draft policy has taken into consideration the Constitutional Court judgement where the dti acquired the exclusive regulation competence over macro manufacturing and distribution of liquor, while Provinces hold the regulation competence over micro manufacturing and retail sale of liquor. The Liquor Act provides for norms and standards in the regulation of liquor for harmonisation. This harmonisation is achieved through co-operative governance established through the National Liquor Policy Council comprising the Minister and the MECs who legitimately formulate such standards. The norms and standards were adopted in line with the mandate and is within the bounds of the Constitution. The provinces remain responsible for issuance of licences for micro manufacturers and retail sale.

Reply:

(a)   No approval has been given for the production of Uzalo television dram produced by Mr Duma Ka Ndlovu and Ms Gugu Ncube.

(b)   No film or television production involving the specified individuals has been awarded funding by the Department of Trade and Industry.

 

Entity	a	b (i)	a(ii)
Companies and Intellectual Property Commission (CIPC)	Not Applicable	Not Applicable	Not Applicable
Export Credit Insurance Corporation (ECIC)	Not Applicable	Not Applicable	Not Applicable
National Credit Regulator (NCR)	Not Applicable	Not Applicable	Not Applicable
National Consumer Tribunal (NCT)	Not Applicable	Not Applicable	Not Applicable
National Empowerment Fund (NEF)	Not Applicable	Not Applicable	Not Applicable
National Gambling Board (NGB)	Not Applicable	Not Applicable	Not Applicable
National Lotteries Commission (NLC)	Not Applicable	Not Applicable	Not Applicable
National Metrology Institute of South Africa (NMISA)	Not Applicable	Not Applicable	Not Applicable
National Regulator For Compulsory Specifications (NRCS)	Not Applicable	Not Applicable	Not Applicable
South African Bureau of Standards (SABS)	Not Applicable	Not Applicable	Not Applicable
South African National Accreditation System (SANAS)	Not Applicable	Not Applicable	Not Applicable
National Consumer Commission (NCC)	Not Applicable	Not Applicable	Not Applicable
Companies Tribunal (CT)	Not Applicable	Not Applicable	Not Applicable