Questions and Replies

Reply:

The investigation of the blog and related matters on African Intelligence leak is at an advanced stage and the team is expected to conclude the remaining scope of the investigation as soon as possible.

Reply:

Government has initiated a rescue plan to revitalise fifteen mining towns in five provinces that were experiencing a prolonged economic slump exacerbated by mining, industrial, commercial or agricultural shedding of jobs. Twelve of labour sending areas in two provinces have also been prioritised for the revitalisation of distressed mining communities.

 

MINING TOWNS
PROVINCE	DISTRICT MUNICIPALITY	LOCAL MUNICIPALITY
Limpopo	Sekhukhune	Fetakgomo, Greater Tubatse, Elias Motsoaledi
	Waterberg	Lephalele
Gauteng	West Rand	Westonaria, Randfontein, Mogale City, Merafong
North West	Bojanala	Rustenburg, Moses Kotane, Madibeng
	Dr Kenneth Kaunda	Matlosana
Mpumalanga	Nkangala	Emalahleni, Steve Tshwete
Free State	Lejweleputswa	Matjhabeng

Twelve labour sending areas in two provinces have been prioritised for the revitalisation of distressed mining communities.

LABOUR SENDING AREAS
PROVINCE	DISTRICT MUNICIPALITY	LOCAL MUNICIPALITY
Eastern Cape	OR Tambo	King Sabata Dalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns
	Alfred Nzo	Mbizana, Ntabankulu
KwaZulu Natal	Zululand	AbaQulusi, eDumbe, Nongoma, Ulundi, uPhongolo

An integrated strategy and Back to Basics Programme was approved by the Inter-Ministerial Committees (IMC), late last year for the different work streams to address the socio economic conditions in mining towns and labour sending areas holistically. Various Programmes are in place and being implemented. The Department of Cooperative Governance (DCoG) is coordinating the national departments, provinces and municipalities. The following departments/institutions participate in the work of the Economic Work Stream:

• The Department of Trade and Industry – overall strategy is to promote Industrial Development through Special Economic Zones and Industrial Parks in Bojanala District Municipality (DM), Greater Tubatse and Lejweleputswa.
• Economic Development Department through Industrial Development Corporation conducted economic assessments in 6 Districts to assist municipalities attract investment and job opportunities to their regions by creating enabling economic development in West Rand, Sekhukhune, Lejweleputswa, Bojanala, Waterberg and Nkangala.
• South African Local Government Association (SALGA) – Small Town Regeneration – developed a comprehensive strategy to address the socio economic decline of towns. It is currently working in the following towns across the 9 provinces focusing on Mining and Industrial Towns, Tourism Towns, Transit and Commuter Towns: Lukhanji, Port St Johns, Letsemeng, Matjhabeng, Randfontein, Bela Bela, Emalahleni, Matlosana, Zululand, Umkhanyakude, Madibeng etc.
• DCoG – Establishment of Business Development Forums to stimulate large scale employment at a local level through private sector driven catalytic business ventures Bojanala DM, Greater Tubatse DM, Matlosana LM and Waterberg DM. Furthermore, the Municipal Infrastructure Grant (MIG) in mining towns and labour sending areas has been aligned to respond to Back to Basics priorities.

Progress has been made in diversifying the economies of mining towns by conducting economic assessments to identify investment opportunities in the following Provinces:

In Limpopo, sectoral opportunities in agriculture, mining and quarrying, manufacturing, wholesale and retail, and tourism has been identified in Sekhukhune and anticipated to attract investments at De Hoop Dam tourism development, Potlake Nature Reserve, fresh produce market, Tubatse special economic zone, R55 doubling and tarring, De Hoop augmentation, mining sector support businesses, bio diesel production, vegetable processing plant, flag boshielo dam development, Mountain Resort Linked to Drakensburg Escarpment Cluster of Projects and Tsate heritage site.

Sectoral opportunities in Waterberg District Municipality were also identified in agriculture, mining and quarrying, manufacturing and tourism. The envisaged investment attraction include agricultural hubs, logistics hub, opportunities linked to mining expansion in the region, mining product beneficiation opportunities, water sorting plant ( green economy), and tourism projects linked to biosphere and nature reserves.

Gauteng sectoral opportunities in agriculture, tourism, green economy, economic infrastructure, transport and logistics were identified and hope to attract the following investments to West Rand:

• Establishment of the Food Hubs ( Agro- processing Park)
• Development of Logistics hub/ Park
• Development of Township Industrial Parks/ Enterprise Hubs
• Development of a Municipal Precinct
• Smart city ( Broad band network)
• The Lanseria Airport City

Free State’s sectoral opportunities were identified in agriculture, mining, tourism, automotive/transportation and energy, hope to attract the following investments in Lejeleputswa:

• The Processing Plant (Hides processing plant & Agro-processing)
• Redevelopment of existing Airport
• Methane gas extraction

Sectoral opportunities in agriculture and agro processing, mining, chemicals/electronics and automotive, manufacturing and trade and tourism have been identified in the North West Province and anticipated to attract investments into Bojanala District in the following areas:

• Catalytic Converter manufacturing plants
• Distribution and Logistics Hub
• International Convention Centers
• Traditional Art Gallery and cultural information centre
• Implementation of Heritage Park
• Establishment of an incubator network and Development Agency
• Rural Integrated Energy Centre
• Lurcene Plant
• Bio-fuel plant
• Sisal Farming Project (Pella)
• Further development of tourism facilities around Sun City node
• Commercialization of small scale farming and agro-processing
• Development of tourism facilities at Borakolalo Reserve (Klipvoordam) jointly with Madibeng
• Upgrading of Phapatso cultural village and establishment of incubator for arts, crafts and cultural industries.
• Pilot waste collection and recycling

Sectoral opportunities in Mpumalanga have been identified in agriculture, mining, food products, wood products, chemicals, and automotive and hope to attract the following investments into Nkangala District Municipality:

• A catalytic convertor component manufacturing plant;
• A truck port/ logistics hub;
• An agro-processing bio-fuel production facility;
• An international convention centre;
• The Moloto corridor rail system;
• Delmas International Cargo Airport – linked to a Free Trade/ Special Economic Zone.
• Loskop-Zithabiseni tourism belt development;
• Rust de Winter tourism development;
• Kusile Power Station project.

Reply:

As I indicated in my response on the 05 September 2015 to question no: 3284, which I stated the following: “Government officials are expected to travel between Gauteng and the Western Cape to carry out official duties, including ministerial and department support to the Executive who carry out parliamentary duties according the Parliamentary Programme.

“Costs incurred by Government Officials are readily made available in Annual Reports which will be tabled in Parliament”.

To further assist the Honourable Member, page 106 of the latest annual report do highlight the item on travel and subsistence.

Reply:

(1) Nothing procured yet but processes are in place for additional VVIP aircraft procurement.

(2) No

Reply:

Developmental pricing refers to arrangements to supply locally-produced inputs at lower than market prices to locally-based downstream producers, in order to stimulate value-add production in a country. It is one of the means that is used to promote beneficiation of minerals so as to expand the national value-chain, grow the number of jobs in manufacturing, deepen the economic development benefits in a country and help to reduce vulnerability of economies that are reliant principally on exports of minerals or agricultural products.

In South Africa, government has supported efforts to beneficiate a greater quantity of locally-mined iron ore through a developmental pricing regime that had been in place for many years.

It is government’s view that pricing of inputs is one element of a number of factors that need to be addressed to expand beneficiation significantly. Other key factors include availability of energy at competitive prices, local know-how or partnerships with international technology partners and availability of key skills. Pricing of raw material inputs remain a critical component in efforts to substantially expand beneficiation of minerals.

-END-

Reply:

Yes, educators who resign from the employ of any provincial education department can be re-employed at a later stage in each province under the same conditions of employment stipulated in section 4 of the Employment of Educators Act, 1998 which states:

“Salaries and other conditions of service of educators

4. (1) Notwithstanding anything to the contrary contained in any law but subject to the provisions of this section, the Labour Relations Act or any collective agreement concluded by the Education Labour Relations Council, the Minister shall determine the salaries and other conditions of service of educators.

(2) Different salaries and conditions of service may be so determined in respect of different ranks and grades of educators, educators appointed at or outside educational institutions or educators appointed in different sectors of education.

(3) A determination of the Minister under this section involving expenditure from the National Revenue Fund may only be made with the concurrence of the Minister of Finance.”

Reply:

The following response is based on information received from the KwaZulu-Natal Provincial Department of Cooperative Governance and Traditional Affairs:

1. Ms. Gabi Gumbi- Masilela was not seconded by Cogta KZN. She was appointed by Umngeni Local Municipality as an Acting Municipal Manager for an initial period of three months. Ms Gabi Gumbi-Masilela is not an employee of Cogta KZN.

2. The MEC responsible for local government in the KwaZulu-Natal Province is currently assessing whether Ms. Gabi Gumbi- Masilela meets the minimum competency requirements for the position of municipal manager.

3. The assessment in (2) above includes whether Ms Gabi Gumbi-Masilela meets the minimum academic and work related experience requirements (b) within 28 days of her appointment as Acting Municipal Manager. As far as could be ascertained, Ms Gabi Gumbi-Masilela resigned her position from the MDB.

4. Yes.

Appointment of municipal managers and managers directly accountable to municipal managers

Municipal councils are required in terms of section 54A and 56(4A)(a) of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) (“Systems Act”) to inform the MEC for local government about the appointment process and outcome of municipal managers and managers directly accountable to a municipal managers within 14 days of the date of appointment as prescribed. The Systems Act further obliges the MEC to submit the information referred to herein to the Minister within 14 days from the date of receipt of the report thereof.

Regulation 17(4) of the Regulation on Appointment and Conditions of Employment of Senior Managers (the “Regulations”) prescribes a written report regarding the appointment process and outcome which must be submitted to the MEC by the municipality. The report referred to herein must contain the following:

1. details of the advertisement, including date of issue and the name of newspapers in which the advert was published, and proof of the advertisement or a copy thereof;
2. a list of all applicants;
3. a report contemplated in regulation 14(2) on the screening process and the outcome thereof;
4. the municipal council’s resolution approving the selection panel and the shortlisted candidates;
5. competency assessment results;
6. the minutes of the shortlisting meeting;
7. the minutes of interviews, including scoring;
8. the recommendations of the selection panel submitted to the municipal council;
9. the details of executive committee members and recommendations, if the selection panel comprised of all members of the executive committee;
10. the recommendation of the executive committee or executive mayor to the municipal council, if any;
11. the municipal council resolution approving the appointment of the successful candidate;
12. the application form, curriculum vitae, proof of qualifications and other supporting documentation of the successful candidate;
13. a written confirmation by the successful candidate that he or she does not hold political office as contemplated in section 56A of the Act, as at the date of appointment;
14. the letter of appointment, outlining the term of contract, remuneration and conditions of employment of the senior manager; and any other information relevant to the appointment.

Secondment of municipal managers

Section 54A(6) of the Systems Act provides that municipal council may request the MEC for local government to second a suitable person, on such conditions as prescribed, to act in the advertised position until such time as a suitable candidate has been appointed. The section also permits the municipal council to request the Minister to second a suitable person, on such conditions as prescribed, until such time as a suitable candidate has been appointed if the MEC for local government has not seconded a suitable person within a period of 60 days after receipt of the request.

In terms of Regulation 20, a person seconded by the MEC or the Minister must report monthly to the MEC or the Minister on the following:

1. steps taken to fill the vacant post to which he or she is seconded;
2. the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible;
3. monitor and assess the adherence to policy, principles and frameworks applicable to the municipality;
4. develop a turnaround strategy for the municipality including a strategy to promote good governance;
5. ensure implementation of municipal council resolutions by the administration;
6. implement a system to control and approve all expenditure;
7. implement all governance systems and procedures; and
8. ensure implementation of financial systems, policies and procedures.

Reply:

The replies as received from the Provinces are specified in the attached table (Annexure A).

Reply:

According to Treasury guidelines on the compilation of Departmental Annual Reports, the 2014-15 annual report does contain information on the costs incurred for travel, accommodation and transport rentals by departmental staff.

Reply:

The following information is supplied by the Northern Provincial Government:

1. (a)The total amount of outstanding debt owed to Northern Cape municipalities is R2.7 billion as at end of June 2015

(b) The table below specified the amount owed to each municipality

(c ) (i) (ii)& (iii) (d) (i) The amount of debt owed by households amounts to R1.7 billion, organs of state R426 million, commercial R373 million and other category of debt amounted to R191 million. The table below illustrates the debt in terms of consumer types and age analysis.

(2) (a) the reasons for government departments not settling outstanding debt are following:

• Incorrect invoices sent by municipalities to departments;
• Late issuing of invoices to departments;
• Payments made by Departments not using a reference number so municipalities cannot identify payments made;
• Inaccurate billings and interest charged on inaccurate accounts;
• Claims not timeously submitted to National Department of Public Works

(b) The department in collaboration with National Task team on payment of outstanding government debt has appointed a service provider to undertake verification and auditing of outstanding debt in all municipalities for possible payments upon confirmation.

3. (a) The information has been requested from the Province; they are in the process of collecting the information from the municipalities. The information will be forwarded to the honourable member as soon as it becomes available.

(b) The department through Provincial COGHSTA and Provincial Treasury has established Provincial Debt Management Committees to mediate and assist municipalities in collecting outstanding debt. Continuous interaction with sector departments and municipalities to assess and verify correct billing for timeous payments.

Reply:

The Municipal Demarcation Board (MDB) is only accountable to the Department for its finances. The MDB reports on its activities to Parliament through the Portfolio Committee.

From the Departments’ point of view, this matter is now sub-judice.

 

Reply:

1. No. In terms of the Disaster Management Act, 2002, the Minister only has the power to declare a national state of disaster. I have not declared any national state of disaster as a result of the recent or current drought.

2. (a) Kindly note that the law empowers the relevant authorities to declare events as disasters and not areas as “disaster areas”. Yes, submissions have been received from four provinces to declare drought disasters. The Premiers in all four provinces, being KwaZulu-Natal, Limpopo, Free State and North West, have declared disasters in terms of Section 41 of the Disaster Management Act No. 57 of 2002, in the following areas.

KwaZulu-Natal Province:

DISTRICT MUNICIPALITY	LOCAL MUNICIPALITY
Ugu	Umdoni, Umzumbe, Vulamehlo, and Umziwabantu
Umgungundlovu	Umshwathi, Richmond, Mpofana and Mkhambathini
uThukela	Emnambithi/Ladysmith, Indaka, Umtshezi and Imbambazane
Umzinyathi	Umvoti, Nquthu, and Msinga
Zululand	Ulundi and Nongoma
Umkhanyakude	Umhlabuyalingana, Jozini, Big Five False Bay, Hlabisa and Mtubatuba
UThungulu	Ntambanana, Umlalazi, Nkandla and Mfolozi
iLembe	Maphumulo, Ndwedwe and KwaDukuza
Harry Gwala	Greater Kokstad, Ubuhlebezwe and KwaSani

 

Limpopo Province:

NAME OF DISTRICT MUNICIPALITY	AFFECTED LOCAL MUNICIPALITIES
Mopani	Maruleng, Letaba and Giyani
Waterberg	Mookgopong, Thabazimbi, Lephalale, Bela-Bela and Mogalakwena
Sekhukhune	Tubatse
Capricorn	Aganang and Blouberg

Free State Province:

NAME OF DISTRICT MUNICIPALITY	AFFECTED LOCAL MUNICIPALITIES
Thabo Mofutsanyane	Mantsopa, Setsoto, Dihlabeng, Nketoana, Maluti-a-Phofung and Phumelela
Fezile Dabi	Moqhaka, Ngwathe, Metsimaholo and Mafube
Gariep	Letsemeng, Kopanong, Mohokare and Naledi
Lejelweputswa	Masilonyana, Tokologo, Tswelopele, Matjhabeng and Nala

North West Province:

NAME OF DISTRICT MUNICIPALITY	AFFECTED LOCAL MUNICIPALITIES
Bojanala	Moretele, Madibeng and Moses Kotane
Dr Ruth Segomotsi Mompati	Ganyesa and Bloemhof
Dr Kenneth Kaunda	Ventersdorp and Tlokwe
Ngaka Modiri Molema	Ramotshere Moiloa and Ratlou

(b) Disasters have not been declared in areas that have not been affected by drought as determined by the provincial assessments.   
     

The NDMC is currently busy with the classification processes in North West Province and Limpopo and still awaiting detailed drought reports from Free State Province.

KwaZulu-Natal declared a state of provincial disaster in July 2014 and is currently implementing its recovery plan with support from the Department of Water and Sanitation and National Disaster Management Centre.

 

                                            

Reply:

( 1) Drought assessments were undertaken with farmers, Provincial Departments of agriculture (inclusive of North West) and the Department of Agriculture, Forestry and Fisheries (DAFF) (with support of Organized Agriculture) to establish the extent and number of emerging farmers affected by drought. Provincial drought reports from the Departments of Agriculture were submitted to relevant Disaster Management Centres (Local, Provincial/ National). The provincial departments of agriculture requested assistance from their respective Provincial Disaster Management Centres (PDMCs) regarding their classification and declaration of state of disaster by Department of Cooperative Governance and Traditional Affairs (DCOGTA) through Disaster Management Act (57 of 2002).

In respect of drought incident, five provinces KwaZulu-Natal (KZN), Mpumalanga, Free State, Limpopo and North West conducted assessments. Declaration process is completed in Free State, Limpopo and North West. National Disaster Management Centre (NDMC) is currently assessing North West province for classification of the drought disaster. Free State and Limpopo submitted classification requests. KZN and Mpumalanga provinces submitted their declaration requests to their respective PDMCs. NDMC will submit the provincial requests to National Treasury for funding.

While awaiting the process to unfold, DAFF has approached all the affected provinces to mobilise resources within their respective provinces. KwaZulu-Natal developed and is currently implementing a provincial drought scheme with a provincial budget of R6 mill ion on emerging farmers, while Limpopo has committed to spent R3 million.

In addition, DAFF continues to monitor conditions in the provinces and issue updated early warning information/ advisory information to the sector which includes strategies to implement during dry conditions. Also, coping strategies of various natural hazards are developed by the department. To date coping strategies for drought have been developed and published into all official languages to be understood by all. These strategies are issued to farmers and officials. Farmers are further encouraged to adapt to the changing conditions i.e. consider suitable farming activities and implement good farming practices as conditions are also aggravated by poor practices.

Furthermore, roving seminars on weather and climate are continually being conducted in the provinces. The main objective of these seminars is to make farmers more self-reliant by helping them become better informed about effective weather and climate risk management for the sustainable use of natural resources for agricultural production.
 

Answer tabled in Parliament on:
DAFF'S RESPONSE:

CLASSIFICATION: CONFIDENTIAL

SUBJECT: QUESTION NO. 3540 FOR ORAL REPLY TO MR N PAULSEN (EFF) ASKED TO THE MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES

Reply:

Answer tabled in Parliament on:

DAFF'S RESPONSE:

Requiem sharks (common name for all the Carcharhinus species) such as the bronze whaler shark (Carcharhinus brachyurus), dusky shark (C. obscurus) and blacktip shark (C. limbatus/melanopterus) are caught as by-catch or targeted in a suite of fisheries, including the commercial linefishery, demersal shark longline fishery, pelagic longline fishery, bather protection programme, recreational linefishery, beach seine and gill net fishery, small pelagic and mid-water trawl fishery and prawn trawl fishery.

This study mentioned by the Honourable Mr. N. Singh (da Silva et al. 2015) was the first attempt by DAFF to evaluae DAFF fisheries data in an attempt to understand the effect of these fisheries on bycatch species. It informed the National Plan Of Action (NPOA) for Sharks South Africa published recently, which lists a number of tasks to be undertaken over the next few years to improve the management of chondrichthyes in South Africa. Once completed, these tasks will ensure that chondrichthyes are managed in a sustainable and responsible manner.

The most recent assessment (Dudley and Simpfendorfer 2006) on requiem sharks caught by the KZN bather protection programme, show stable catches of bronze whaler and dusky sharks between 1978 and 2003. These species represent the majority of by-catch as listed in the review by da Silva et al. 2005. Blacktip sharks do show a decline (Dudley and Simpfendorfer 2006) between 1978 and 2003. However less than 10 t (dressed weight) on average of blacktip sharks were reported between 2010 and 2012. Although this study represents data from catches in KZN, the bather protection programme is a good indication of long-term trends due to standardized fishing procedures. Declines have been shown for other species caught by the KZN bather protection programme, and this has been used in the past to inform management strategies. Therefore there is little evidence to suggest that overharvesting of these species is occurring. These trends continue to be evaluated by the scientists based at the KZN Sharks Board.

DAFF research on sharks is currently directed at the 4 main shark species caught as target in the highest quantities. These include the smoothhound shark (Mustelus mustelus), soupfin shark (Galeorhinus galeus), shortfin mako shark {lsurus oxyrinchus) and blue sharks (Prionace glauca). Over the next 5 years the Department will be evaluating the list of 99 of 204 South African chondrichthyes caught in commercial fisheries in South Africa to select the next set of species for directed research. This is set out in the NPOA for sharks.

CLASSIFICATION: Confidential

SUBJECT: ANSWER: Question 3412 for written reply: National Assembly to ask Minister for Agriculture,

Forestry and Fisheries

Reply:

The Department of Basic Education has a bilateral agreement with the Department of Science and Technology to increase learner participation and success rates in Science and Technology in all rural schools. Currently, the Department of Basic Education, in partnership with the Youth into Science Directorate of the Department of Science and Technology, has finalised building plans for the construction of a Science and Teacher Resource Centre in Cofimvaba, Eastern Cape. This forms part of the Technology for Rural Schools Education Project. The project is at an advanced stage, and aims to provide access to learners from rural and disadvantaged backgrounds to state of the art science and technology facilities.

Reply:

The Minister intervened in terms of section 106 of the Municipal Systems Act by requesting the MEC for local government in the Free State Provincial Government to investigate this matter.

According to the information received from Nala Local Municipality, the municipality has entered into an arrangement with affected councillors to recover the monies overpaid to them.

Reply:

I draw the attention of the Honourable Member to my remarks during the debate on the state of the economy, held in the National Assembly on 18 August 2015, available in Hansard. For ease of reference, an extract form the speech follows:

“These two global storms, in the mineral and steel sectors, are what we have to navigate with as little damage as possible, recognising that production and job losses in these sectors can have a multiplier effect on the economy.

So what are we doing to respond to these conditions and to address the still-continuing high levels of unemployment?

First, we are maintaining a high level of public investment in infrastructure, which is a true game-changer for the economy. We are spending close to a quarter trillion a year, or R1 billion rand per working day, on economic, industrial and social infrastructure. The BRICS New Development Bank is a major potential source of new funding for South African and regional infrastructure.

Second, we are expanding trade with the rest of Africa, particularly exports of South African made cars, machinery, iron and steel and food products.

Honourable Members will be pleased to note that exports to the rest of the continent now account for 244 000 direct jobs and it has been estimated as much as 885 000 total jobs; that last year, Zambia was our number one global export market for televisions, Zimbabwe for plastic products, Mozambique for clothing and the DRC for electrical equipment.

Third, we are implementing actions in the domestic economy, summed up in the 9-point plan announced by the President in the State of the Nation Address in February.

The nine priorities are:

1. Resolving the energy challenges through practical actions, including cogeneration, new IPPs and completing the public energy-build programme
2. Revitalising the agriculture and agro-processing value chain
3. Advancing beneficiation through adding value to our mineral wealth
4. More effective implementation of a higher impact Industrial Policy Action Plan
5. Unlocking the potential of small business, cooperatives and township and rural enterprises
6. Stabilising the labour market
7. Scaling up private sector investment
8. Growing the Oceans Economy and
9. Diversifying and boosting the economy through science, technology and innovation, expanding transport, water and ICT infrastructure and reforming state-owned companies.

To respond to the steel industry's problems:

• We fast-tracked a tariff investigation by the trade authorities on three steel products
• We completed a competition commission probe into steel pricing by the dominant company
• We extended short-term industrial funding of R150 million to one steel-mill to give it the space to restructure rather than close its doors
• We appointed a panel of steel industry experts to identify options for steel that would not damage downstream factory users, and
• We are meeting with business and labour to identify further steps to be taken,

To respond to the mining industry's problems:

• We convened a dialogue with stakeholders to consider options to reduce or avoid job losses
• We are investing in technologies and innovation to boost demand and localisation, such as platinum fuel-cell pilot projects
• We have initiated a Mining Phakisa to address the future of the industry

To respond to the clothing and industry's challenges:

• We implemented a tariff increase on finished products at the start of the previous administration
• We set a reference price on imported clothing to identify smuggling and import-fraud
• We created a competitiveness fund that has already invested over R3 billion in new technologies and work organisation to boost output and jobs.

More generally, the IDC expanded its industrial funding envelope over the past five years, particularly in green energy, putting some R14 billion into the Independent Power Producer programme that has already seen almost 2000 megawatts of energy coming onto the grid.

The IDC is now focusing on expanding investment in manufacturing, agro-processing and new industries.

During a time of declining mineral exports in dollar value, our auto exports have actually accelerated after 2011 and now constitute one of our top five exports, speaking to the success of the partnership built with investors.

To boost competitiveness, the competition authorities have acted against monopolies and cartels in sectors such as fertilisers, bread and poultry, steel, construction and telecomms.

To promote partnership, the Deputy President has led discussions with the business community and trade unions on reducing workplace conflict, including the role of strike ballots, action against violence in strikes and picketing rules. To reduce income inequality in the workplace, proposals for a national minimum wage are under discussion.

To boost youth employment, government is revamping its skills and entrepreneurship support programmes to make them more effective. The President convened a meeting with the business community 10 days ago at which stronger partnerships on skills development and work placement were considered.

…as we navigate our way through the minerals and steel turbulence and storms generated by falling global demand, we need to pull South Africans together, address domestic challenges such as energy and labour-business partnerships and speak with one voice.”

-END-

Reply:

Minister of Labour Reply:

The officials that accompanied the Deputy Minister were from the following Branches: International Relations, Public Employment Services, Compensation Fund, Unemployment Insurance Fund and Deputy Minister’s Office. The Department has tabled its 2014/2015 Annual Report to Parliament, the Honourable member may get a copy from the Clerk of Papers.

The focal areas for cooperation were inter alia:

Youth employment approaches; Strategic issues relating to Employment Services provisions; Models for Compensation to injured workers; unemployment Insurance benefits; Job Creation initiatives and Technical exchange programmes.

The details of the Memorandum of Understanding are the same as the areas on which the two Countries shared experiences as mentioned above.

Reply:

Below is the response provided by the Buffalo City Metropolitan Municipality, attached as Annexure A, as received from the Eastern Cape Provincial Department of Cooperative Governance and Traditional Affairs:

ANNEXURE A

Number	Questions	Response
1.	Whether the driver of the Buffalo City Fire vehicle which was involved in a serious accident on Thursday, 27 August 2015, had a driver’s license of any type; if not,	The driver at the time was in possession of a Code 03 learner’s license which permits the driving of the heavy vehicle whilst accompanied by a licensed driver. The learner driver was inter alia accompanied by the Divisional Officer: Training who is in possession of a Code EC driving license
	a) why was the driver controlling a multimillion rand vehicle which had just been returned to service, and	a) The driver was controlling the vehicle as she was on a Pump Operator/Driver course. The duration of which was 11 August 2015 to 04 September 2015
	b) Who authorised that the driver utilise the vehicle, and	b) The Divisional Officer: Training authorised the driver to utilise the vehicle. Note – in terms of Buffalo City Metropolitan Municipality (BCMM) fleet Management Policy Fire Fighting Vehicles may only be used in the case of inspection of fire equipment or installation and training purposes
	c) What disciplinary action will follow in this regard; if so,	c) Disciplinary action is to be decided on once a comprehensive investigation has been completed
	(i) What was the code of the relevant driver’s license	Code 3 learners license
	(ii)When was the license issued and;	Code 3 learners license issued on 11 August 2015 and
	(iii) When does it expire	(iii) It expires on 11 February 2017
2	Whether there are minimum standards in place for the control, driving and operation of specialised fire vehicles; if not, why    not; if so, what are the standards	There are minimum standards in place, Fire fighters with a vast experience on driving heavy duty vehicles are selected to attend the Pump Operator/Driver Course. On the course people are trained on how to operate the vehicle and engage the pumps. There are tests and a practical evaluation that must be passed by each student. The competent fire fighters are issued with the relevant internal certificate. These are the only people who are authorised to drive the Aerial Appliances even during emergencies.

Reply:

1. (a) and (b)

Traditional Leaders are involved in various development programs as part of job creation and improving the socio-economic well-being of their communities. The following are examples:

• Empangisweni Traditional Community: INKOSI ZONDO
• Stock farming – in Nguni cattle. The project has resulted in the capacitation of many black farmers.
• Soil utilization – particularly maize. This project has resulted in the employment of many locals and their capacitation.

• Dzumeri Traditional Community: HOSI DZUMERI
• Hosi Dzumeri awarded 50 wheelchairs to needy men, women children, not only from Dzumeri, but even other neighboring communities as well.
• Hosi has committed himself to increasing the number to over 100.
• Bakgatla Ba Kgafela Traditional Community: KGOSI PILANE
• Mining – has resulted in the employment of many locals and the development of the area.
• Mphebatho Museum – a major tourist attraction and a source of employment.
• Clothing factory – has resulted in the employment of many locals. It supplies major clothing retailers (e.g. Truworths ) with raw material.
• Farming – include goat farming. The aim with the project is to utilise available resources and land to make available employment opportunities to the community.
• Hospitality industry – to advance job creation and sustainable economic development.
• Moruleng Shopping Centre – the state of the art shopping center is a major source of employment for the community in Moruleng.
  • Road construction: The TC through its development wing constructed a road (tar road)

2. (a)(i)

Ehlanzeni District Municipality

The support provided by the District Municipality to nine (9) traditional leaders participating in Municipal Councils includes, sitting allowances and the provision of communication tools. All traditional leaders within the district are provided with financial assistance towards holding of traditional/cultural ceremonies (Immemo).The special designated seating arrangements for royalty in the council chambers and joint formal procession with the speaker into the chamber during council meetings are some of the protocol matters that are highly appreciated within the traditional institution.

Meetings that precede council meetings are held regularly between the district municipality speaker and the traditional leaders participating in municipal councils. Traditional leaders also participate in an IDP forum constituted by all mayors from local and the district municipalities in the region which focuses on development and other service delivery issues.

3. (a)(ii)

Gert Sibande District Municipality

The support provided by the District Municipality to seven (7) Traditional Leaders participating in Municipal Councils includes, sitting and cell phone allowances and other communication tools as well as office accommodation and office furniture. Traditional leaders have been enrolled on a training programme for leadership development by the district at the University of Zululand.

All traditional leaders within the district are also provided with financial assistance towards holding of traditional/cultural ceremonies (Immemo).Traditional leaders are part of the mayoral imbizo which is held annually. There is also an IDP forum constituted by traditional leaders and all mayors from local and the district municipalities in the region which focuses on development and other service delivery matters.

b) Other Provinces

In KwaZulu-Natal Province in the ILembe District and its local municipalities of Ndwedwe, Maphumulo, Mandeni and KwaDukuza, the strengthening of participation of traditional leadership in Municipal Councils proceedings is commendable. The Provincial CoGTA traditional leaders are not only attending meetings of full municipal council, but the municipalities have allocated seats for traditional leaders in Portfolio Committees of Municipal Councils. This enables traditional leaders to deliberate on policy matters.

Furthermore, the following effective partnerships with the traditional communities focusing on cooperatives, health and welfare, education, enterprise development, supply chain focusing on local procurement have been established in both Limpopo and North West within the platinum belt:

In Limpopo Province, R27 million has been invested in building a school, which is yet to be handed to the traditional community in Magadimana-Ntweng Traditional Council in Serafa Village within the Greater Tubatse Municipality. Traditional communities in Mapela, Ga-Chaba, Gamolekana, Phofola, Rooibok Sterkfontein in Mokopane are benefiting R39, 8 million agriculture projects. A market has been created for these flourishing projects. These farms supply their produce to the informal sector, local fruit and vegetable retailers and wholesalers including fresh produce markets. These projects are run by community structures supported by the traditional leaders and external capability to ensure high level of effectiveness and productivity.

Working with both Kgoshikgolo Thulare Thulare and Kgoshikgolo KK Sekhukhune and various other community leaders the ARM Broad Based Empowerment Trust built the Mampuru Thulare Primary School for R2.3 million in 2010. The school, which is currently being attended by approximately 700 pupils, has 8 classrooms and 6 ablution blocks and has been a positive catalyst for development in the area with children from the area now spared the hardship of walking long distances to school every day.

In 2014 the Trust spent a further R1.4 million on renovations and building a nutritional centre at the school. The Limpopo Rural Upliftment Trust has also been hard at work providing water to communities around the province. The Trust has spent approximately R1.2 million drilling and equipping 18 boreholes in the province. The boreholes now supply clean drinking water to these communities

In North West Province a SEDA Platinum project of glass beads jewelry has been established. The required machinery has been purchased and the cooperative members have been trained. At the moment, about R2,3 million is invested for this project. The second project is a craft hub called Tsakane Arts Cooperative. This project targets the youth and provides an opportunity for them to further explore the skills in arts and crafts and to have sustainable source of income. Almost R4.1 million has been invested in this project. Almost 7 people who were farming pigs on a casual subsistence basis have been assisted through the partnership by commercializing the farms into income generating activity at a higher scale. Almost R3.4 million has been spent to upgrade infrastructure, training for farmers on business development, product quality control, marketing and administration.

Anglo Platinum has agreed to appoint a professional videographer to capture all the projects to promote sustainable development and self-reliance in rural communities.

In the Eastern Cape Province R12 million to date has been distributed to the Eastern Cape Rural Upliftment Trust.Two new child care centers, the Kwathamsana Child Care Centre and the Zanci Child Care Centre were built in the Mqanduli area in the Eastern Cape to the value of R1.7 million. The Zanci Child Centre which was proposed by Nkosi Phatekile Holomisa benefits approximately 160 infants from the Zanci Village.

At the Ntabakandoda Secondary School, located in the Ngcamngeni Village the Trust built a soup kitchen at a cost of R200 000. The kitchen caters for 500 students and [will] cater for children from the Ntabakandoda School as well as primary school and pre-school children within the village.The Trust has spent a further R4.5 million building and renovating schools throughout the province.

Agriculture has also been a key focus for the trust in the Eastern Cape. The Manguzela Crop Production Project, in the Matatiele area, received in excess of R800 000 for farming equipment and supplies for crop production.

The Mpumalanga/ Northern Cape Rural Upliftment Trust has received approximately R7.3 million to date. In Mpumalanga, the Ipopeng Agricultural and Chicken Project received a total of R790 000 for the vegetable garden and for chicken farming. A tractor, a plough, a diesel cart, a trailer and a ploughing disc have been bought for the vegetable garden. Members of the community have been able to benefit from this project as poor families identified by the tribal council are able to receive vegetables and or chickens free of charge from the project. In addition the ARM Broad-Based Economic Empowerment Trust drilled and equipped 7 boreholes in various communities in the Ekhangala district.

The Mamathlake Vegetable Project has also been a great success having been developed in 2012 by the Trust at a cost of R780 000.The Trust’s projects in Mpumalanga also include the provision of water to the Xanthia High School in Thulamahashe, the Ngungunyane High School in Bushbuckridge, and the JP Khoza Primary School in Thulamahashe at a total cost of R198 000.

In the Northern Cape the African Rainbow Minerals (ARM) Broad Based Economic Empowerment Trust renovated and erected fencing around the Ikageng High School in John Taolo Gaetsewe and funded the purchase of 100 bicycles for learners from various schools in the area. In Kuruman a vegetable and chicken project for the Batlhaping Ba- Ga Phetlhu has been allocated R974 000.

In addition to the projects of the ARM Broad-Based Empowerment Trust R 736 million has been spent by ARM’s operations through Local Economic Development and Social Labor Plans in the preceding 5 years. The Trust continues to be committed to working with our local community leaders, government, church groups, trade unions, women and youth groups to develop sustainable projects that will improve the living conditions and standards of living of all our people.

Since inception, the ARM Broad Based Economic Empowerment Trust has distributed a total of R120 million to its beneficiaries for projects in education, health, water, enterprise development, farming, agriculture and rural development initiatives throughout South Africa.

Five provincial rural development trusts led by trustees who are key leaders in their respective communities and provinces were created for the purpose of uplifting and benefiting rural communities. The partnership between community leaders and the Trust assists in identifying the needs of the communities to ensure that projects undertaken by the provincial trusts have maximum impact in the upliftment and development of communities.

Traditional leaders, especially kingships have had partnerships with the Motsepe Foundation and the Department of Agriculture, Fisheries and Forestry. The Department of Traditional affairs will be engaging the Motsepe Foundation, Department of Agriculture, Fisheries and Forestry to extend and establish partnership relations as they operate within our sector. Furthermore, the DTA will also try to synchronize the work that other stakeholders are doing within the traditional communities to ensure effective and efficient service delivery and desired impact.

Reply:

1.

(a)	(b)
R6 706 495,32	1596

2.

(a)	(b)
R1 377 154,53	R381 595,41

Reply:

(1) (a)As at 30 September 2015, there are no South African teachers being trained to teach Mandarin in South African schools.

(b)There are eight (8) Chinese Language Teachers in South Africa already. There are plans by the Chinese Embassy to bring four (4) teachers in October 2015 and an additional three (3) in January 2016. The total number of teachers is expected to be fifteen (15) by the end of January 2016.

(2) No. The Chinese teachers are not expected to assist in teaching other subjects.

 

Reply:

1. Yes, my department conducted various workshops and National Language Fora with national government departments, national public entities and national public enterprises during which the department workshoped them on how to write their language policies.
2. The workshops conducted by my department yielded positive results as policies received, comply with the prescripts of the Act. The department also gives advice and makes comments when and where necessary.
3. The department is in a process of appointing a service provider to enforce compliance on the Use of Official Languages Act, 12 of 2012.

Reply:

District	Number of Schools
Bohlabela	8
Ehlanzeni District	61
Nkangala	11
Gert Sibande	The province, through the district is in the process of verifying the number of schools paying Municipalities for use of flushing toilets. This information will be provided when available

District	Amount being paid by each school per flush toilet
Bohlabela	Schools are paying on average an amount of R116.58 per month per toilet
Ehlanzeni District	The District is unable to quantify the amount paid per flush toilet as schools are billed differently depending on the Municipality and different Financial Reporting Standards adopted by each school.
Nkangala	The District is unable to quantify the amount paid per flush toilet as schools are billed differently depending on the Municipality and different Financial Reporting Standards adopted by each school.
Gert Sibande	The District is unable to quantify the amount paid per flush toilet as schools are billed differently depending on the Municipality and different Financial Reporting Standards adopted by each school.

**The difficulty in soliciting the required financial management information points at different Financial Reporting Standards adopted by each school. In future, and as part of continuous improvement, there might be a need to provide guidelines to Districts and schools that would enable this type of information to be extracted with fair ease.

District	Number of Schools without access to adequate flush toilets
Bohlabela	226
Ehlanzeni District	286
Nkangala	40
Gert Sibande	334

**However it should be noted that In terms of the Regulations Relating to Minimum Uniform Norms and Standards for Public School Infrastructure all schools should be provided with acceptable basic services. Acceptable basic services include: waterborne sanitation, small-bore sewer reticulation, septic or conservancy tanks, Ventilated improved pit latrines and composting toilets, Municipal water supply, boreholes, rainwater harvesting (purified) and different forms of power supply. Therefore, the choice of appropriate sanitation technology, which includes any of those indicated above, may only be based on an assessment conducted, which will include the availability and reliability of services in the particular locality.

Reply:

According to information submitted by the Blue Crane Route Local Municipality (BCRM), the following cases were instituted against the municipality:

How many cases have been instituted	How many of the specified cases were lost	What has been the total cost to the municipality of all specified cases	What was the nature of each of the cases
Seven cases	One case was lost and four cases were settled out of court.	Corporate Finance Solutions vs BCRM: 2010: Legal fees: R 58 963	Municipality sued for arrear rental payments.

How many cases have been instituted	How many of the specified cases were lost	What has been the total cost to the municipality of all specified cases	What was the nature of each of the cases
		Mr H Hendricks vs BCRM: 2012: Legal fees: R 99 383 Settlement 1: R 67 500 Settlement 2: R 36 155	Mr Hendricks lodged a dispute for unpaid salary and performance bonus. A settlement agreement was reached and the dispute was resolved.
		Mr A Swanepoel vs BCRM: 2013 Legal fees: Mr Swanepoel to pay all costs of the municipality.	Mr Swanepoel successfully lodged an application against the municipality for wrongful accusation of misconduct/theft. The municipality successfully appealed judgement of the lower court. The court ordered that Mr Swanepoel must pay costs of the municipality. The municipality will proceed with recovery costs against Mr Swanepoel.

How many cases have been instituted	How many of the specified cases were lost	What has been the total cost to the municipality of all specified cases	What was the nature of each of the cases
		Mr E Rankwana vs BCRM: 2013 Legal fees: R 352 528 Settlement: R 450 000	Mr Rankwana applied for post of Municipal Manager and was not successful. He lodged an application to review and set aside appointment of Mr T Klaas as Municipal Manager. At the hearing scheduled for 18 June 2015, Mr Rankwana’s legal team proposed that the matter be resolved out of court and that each party pay its own costs. The matter was referred to the Municipal Council which unanimously resolved to settle the matter out of court.
		Mr S Kambi vs BCRM: 2015 Legal fees: R 27 398	Mr Kambi lodged a claim to the Labour Court against the municipality in respect of payment of unpaid salary. The municipality successfully defended the matter.

How many cases have been instituted	How many of the specified cases were lost	What has been the total cost to the municipality of all specified cases	What was the nature of each of the cases
		Mr P Dreyer vs BCRM: 2013 Legal fees: R 40 422 Settlement: R 34 544	Mr Dreyer lodged a dispute demanding payment of R 69 087.72 in respect of performance bonus for a period of two years while he acted as Manager: Community Services. The legal team of Mr Dreyer and the municipality agreed to settle out of court.
		Ms G Sammy vs BCRM: 2014 Legal fees: R 29 490 Settlement: R 34 544	Ms Sammy lodged a dispute to the Labour Court demanding payment of R 38 428 in respect of payment of unpaid salary. According to the municipality, R 34 544 has been paid in settlement of this matter.

Reply:

	Travel Cost	Number of trips	Accommodation Cost
(a) Minister Pravin Gordhan	R R256 971.00	44	R0.00
(b)	Deputy Minister Nel	R 252 538.00	35	R0.00
	Deputy Minister Bapela	R 282 437.00	51	R0.00

Reply:

The following information was provided by the John Taolo Gaetsewe District Municipality:

The John Taolo Gaetsewe District Municipality entered into an agreement with the service provider (Buhle Buzile Investments) to screen the memorials and funeral of the late former President of the country, Mr Nelson R Mandela, in villages across the three local municipalities in the district (Joe Morolong, Ga-Segonyana and GaMagara) in December 2014. The purpose of the screening of the memorial was to ensure that deprived members of the community in these municipalities also get an opportunity to be part of the proceedings to bid farewell to the former President. The service was delivered as agreed upon.

The initial agreement that each Local Municipality within the District Municipality contributes a pro rata amount towards the cost, did not materialize due to financial constraints, resulting in payment delays. This delay caused the service provider to institute a civil claim against the municipality in the Kimberley High Court (Case No. 1589/2014) and the court ordered the District Municipality to make payment of a specified amount to the service provider. The matter has been tabled before the John Taolo Gaetsewe District Council for a resolution authorising the payment to the service provider. The Council is to consider the matter during its October 2015 sitting.

Reply:

a) (i) and (ii)

Complicated or unnecessary processes and procedures which impede or delay service delivery or decision making.

b) Boxing South Africa (BSA) is currently reviewing its standard operating procedures.

South African Institute of Drug free Sport (SAIDS) is experience no red tapes.

Reply:

1. Yes, the department currently employs 10 persons with disabilities which represent 2.1% of the staff complement.

Reply:

1. All museums reporting to me has commenced with the process of recording and evaluation of their national heritage assets. The first phase entails the capturing, verifying and conversion of manual registers into electronic asset registers. The financial evaluation phase will commence once phase 1 has been concluded and is subject to availability of funds.

2(a) The preliminary assessment done by my department pertaining to the tagging and evaluation of the museums pieces revealed that the exercise will cost in the region of about R205 million.

(b) An assessment was done on the status of security at museums. Given the inputs received from the museums, a costing exercise will be conducted to determine the budget required to upgrade security features at various museums in South Africa.

Reply:

1. The department has established a paypoint in Tsakane where beneficiaries can draw their cash - grants over the first five days of the months and it is a kilometer away from Tsakane Mall.
2. & (3) There is no pay point at Tsakane Mall in Brakpan. Because of the multiple options and benefits beneficiaries derives in receiving their grants, other distribution channels exist and in this regard there are 3 merchants stores which are pay out centres. The beneficiaries opting these pay – out centres not only withdraw money but also access other services in the mall. The department is constant contact with the service provider to improve queue management during the pay days.

Reply:

RSR RESPONSE

1 a) The Board of Enquiry set up into the train accident at Denver Station has concluded its work. The main finding of the Board of Enquiry is that the driver of the Express Train passed the ‘signal at danger’, and rear ended train number 0600 that was stationery at Denver train station.

b) The cost of the damage is R22 million.

2. PRASA has started implementing the recommendations of the Board of Enquiry, in order to prevent a recurrence of an incident of a similar nature.

Reply:

1. (a) (i) (aa) 1

(bb) 1

(cc) 0

(dd) 0

(b) (i) (aa) 0

(bb) 0

(cc) 0

(dd) 0

(ii) 0

2. (a) (i) Sao Paulo, South America

(ii) N/A

(b) Possession

(i) 8 years imprisonment

(ii) None

(c) None

3. No, this is an operational matter of the company that management and the board can deal with.

 

Reply:

The Government has policies and programmes on economic empowerment which all Departments should implement, the Department of Labour policies and programmes are derived from those of National Government. With regards to Ministry of women, there is no collaboration at this stage.

Reply:

Question 1: Preliminary indications are that the 2015 public sector wage agreement will cost as much as R63.9 billion over and above what is provided for this purpose in the budget baseline over the 2015 MTEF. Of the above amount R41.5 billion is for cost of living adjustments, R11.1 is for medical assistance and R11.4 billion is for housing allowance.

Salary negotiations are taking place at the Public Service Coordinating Bargaining Council (PSCBC), which is established in terms of section 35 of Labour Relations Act 66 of 1995. The main purpose of the PSCBC is to allow Public Service parties to negotiate on transverse matters including terms and conditions of employment, resolve disputes and facilitate hearings to resolve disputes that arise in the Public Service. This excludes matters pertaining to Constitutional Institutions and Public Entities.

Question 2: National Treasury is certain that the agreement can be accommodated within the current expenditure limits. Contingency reserves will play a role in accommodating higher compensation budgets this year, and so will resources available due to projected underspending. Some reprioritisation from other budget lines will also be required from Departments and provinces.

National Treasury is currently coordinating the budget process in preparation for the Medium Term Budget Policy Statement (MTBPS) in Parliament in October 2015. The Minister of Finance will make an announcement at the MTBPS on how costs of the wage agreement will be financed.

Reply:

The information requested by the Honorable Member is an element that forms part of the more aggregated figure used to prepare the regular reports on the current account and on the financial account, both of which are published in the Reserve Bank Quarterly Bulletin.

The South African Reserve Bank (“SARB”) records all inward and outward transactions for goods and services, for residents and non-residents through, “BOPCUS” - the “Balance of Payments Customer Transaction Reporting Electronic Message System”. Authorised Dealers in foreign exchange report all such transactions to SARB via the BOPCUS system, according to balance of payments categories.

The most recent SARB Quarterly Bulletin published (in September 2015) published the following figures for the first two quarters for 2015 (Table; page 34).

At the aggregated level, this shows the total outflow on the ‘net service, income and current transfer payments’ account of R138 billion on a seasonally adjusted and annualised basis. These are flows on the current account that are not related to trade flows. Indeed, the trade balance recorded a small (R14 billion) surplus on a seasonally adjusted and annualized basis.

Taken together with the services, income and current transfer payments, the balance on the current account has improved every quarter since 2014Q2; and now stands at 3.1 per cent of GDP.

On the financial account, however, financial inflows reached 2.9 per cent of GDP in the first half of 2015 from 5.9 per cent in 2014, as net outflows in ‘foreign direct investment’ and ‘other investment’ rose. Net portfolio inflows far exceeded total 2014 inflows of R49.5 billion, with demand for equities particularly robust.

a) (i) (ii) According to the information provided to me by the Reserve Bank, outward cross-border payments from non-resident rand accounts totalled 52,000 transactions amounting to R30 billion in 2013 (all figures are rounded off in this response); and 47,000 transactions amounting to R144 billion in 2014. These outflows were transferred to 161 countries in 2013 and to 138 countries in 2014. The average transaction value for 2013 was R586,000 and R3 million in 2014.

The Honourable Member should note that this should be compared to inward cross-border receipts, as they are linked in the sense that no inward flows are possible unless outward flows are allowed. Inward cross-border receipts into non-resident rand accounts totaled 42,000 transactions, amounting to R93 billion in 2013 and 40,000 transactions amounting to R194 billion in 2014; averaging R2 million and R5 million per transaction respectively.

b) (i) (ii) Table 1 sets out the highlights for the top 7 destination countries for transactions over R1 billion per annum.

In 2013, the top 7 destination countries represented 86% of the total transaction value, R26 billion, through 33 thousand transactions, averaging R778 000 per transaction. In 2014, the top 7 destination countries represented 96% of the total transaction value, R139 billion through 31 000 transactions, averaging R4,5 million per transaction.

 

Table 1

Outward Cross-Border transactions over R1 billion from Non-Resident Rand Accounts in top 7 countries

	2013	2014
	R billion	No. of transactions	R billion	No. of transactions
United Kingdom	16,3	17,319	102,6 *	16,686
United States	1,3	4,124	27,0	3,643
Germany	4,0	2,266	1,7	1,958
Switzerland	2,0	456	2,0	293
Australia	0,83	8,297	2,7	7,102
Thailand	0,2	82	1,1	84
Ireland	1,1	698	1,7	871
Total	25,7	33,242	138,7	30,637

* A sharp increase in outflows during 2014 was due to increased transfers to the UK resulting from the “Disinvestment of money market instruments by a non-resident” category.

Table 2

Outward transactions over R1 billion from Non-Resident Rand Accounts in 25 countries with the most transactions per annum

Table 2 reflects a further breakdown by the most active continents, i.e. Africa, Asia and Europe. Together with the top seven destination countries listed in table 1, in 2014, the transactions comprise 98% of the total transaction value (2013: 94%).

	2013	2014
Africa	Rm	No. of transactions	Rm	No. of transactions	2Y average R'000
Malawi	2	73	5.2	94	39
Zimbabwe	85	762	48.8	486	106
Namibia	36	260	109.6	213	327
Swaziland	57	101	11.5	90	346
Botswana	488	782	122.2	229	579
Mauritius	273	225	342.5	193	1495
Mozambique	439	198	513.7	208	2343
Total	1380	2,401	1153.5	1,513	5234

Asia
India	81	584	82.2	393	174
Taiwan	15	22	17.0	94	433
China	36	278	157.5	148	597
Singapore	53	115	329.0	90	2059
Total	186	999	585.6	725	3263
Europe
Poland	2	151	2.2	172	14
Portugal	30	2,130	42.4	2,272	16
Czech Republic	1	111	3.5	129	20
New Zealand	160	4,024	209.0	3,693	48
Canada	140	2,561	119.7	2,471	52
Israel	69	738	99.6	657	123
Spain	25	226	38.9	260	129
Italy	86	439	30.1	425	134
Greece	5	132	49.8	163	172
France	58	431	109.1	469	183
Austria	58	161	49.9	144	352
Netherlands	200	922	985.5	907	651
Sweden	133	164	176.9	109	1218
Jersey C.I	320	119	69.8	98	1703
Total	1288	12,309	1986.4	11,969	4815

Reply:

The hounourable member should get this information from the Department’s annual reports as tabled in Parliament

Reply:

All the statistics that the Honourable Member is requesting already exist within specific breakdowns. The records are accessible from each Department.

Reply:

The relevant provincial authorities are empowered in law to take action; hence the report was handed to the Premier of the Free State as the executive head of the provincial administration.

Reply:

The collective bargaining for local government is under the auspices of the South African Local Government Bargaining Council (SALBC). SALBC recently entered into a 3 year salary and wage agreement. The agreement reached is as follows:

• 2015/16       -     7%
• 2016/17       -     average CPI (February 2015- Jan 2016) + 1%
• 2017/2018   -     average CPI (February 2016- Jan 2017) + 1%

                             

The following responses were provided by SALGA:

a) (i) The total cost of the negotiated 3 year collective agreement is estimated by SALGA to amount to approximately R16.682 billion. This increases the national wage bill for local government from R77.888 billion in 2014/15 to R94.570 billion in 2017/18. This calculation is based on the assumption of an average CPI of 5% for the 2016/17 year and an average CPI of 5.5% for the 2017/18 financial year.

 

(aa) 2015/16 - R5.884 billion; and

(bb) 2016/17 - R5.026 billion; and

(cc) 2017/18 - R5.772 billion

 

(b) The requested detail is not available per municipality. However, SALGA estimates that the increases applicable to each municipality’s current wage bill will be as follows:

 

2015/16 - 7.55%;and

2016/17 - 6.00% and

2017/18 - 6.5%

 

(c) These increases in the respective wage bills of municipalities will be funded from municipal income generated from property rates, trading services such as electricity, water and other related service charges such as refuse removal and sanitation charges coupled with equitable share transfers from national government.

Reply:

1. Preliminary indications are that the 2015 wage agreement will cost as much as R63.9 billion over and above what is provided for this purpose in the budget baseline over the 2015 MTEF. Of the above amount R41.5 billion is for cost of living adjustments, R11.1 billion is for medical assistance and R11.4 billion is for housing allowance.

Line departments at national and provincial level are being engaged to assess the magnitude of shifts required for reprioritisation.

2. National Treasury is certain that the agreements can be accommodated within the current expenditure limits. Contingency reserves will play a role in accommodating higher compensation budgets this year, and so will resources available due to projected underspending. Some reprioritisation from other budget lines will also be required.

3. National Treasury is currently coordinating the budget process in preparation for the Medium Term Budget Policy Statement (MTBPS) in Parliament on 21 October 2015. The Minister of Finance will make an announcement at the MTBPS on how costs of the public sector wage agreement will be financed.

Reply:

(a)(b) Exempt supplies are supplies of goods or services where VAT is not chargeable at either the standard or zero rate. A person who only makes exempt supplies is not allowed to register as a vendor, charge VAT on supplies over deduct input tax incurred on its acquisitions.

Some examples of exempt supplies include:

• Financial services, including life insurance policies
• Residential accommodation in a dwelling;
• Passenger transport in South Africa by taxi, bus or train;
• Educational services provided by recognised educational institutions;
• Childcare services provided at crèches and after-school care centres;
• Services supplied by a bargaining council to any of its members; and
• Goods and services supplied by a political party to the extent of membership contribution.

The National Treasury publishes a tax expenditure estimate in the annual Budget Review. Included in this tax expenditure is the estimated cost of exemption of VAT in respect of public transport and education. The estimated cost reflects the net of the VAT that would have been charged and the input tax that is not refunded.

Estimates are not available for the other exemptions. It should be noted however that financial services is not purely exempt. South Africa introduced VAT on certain supplies of fee based financial services in 1996 which has resulted in a net output tax payable by the affected financial institutions.

 

The tax revenue forfeited on public transport and education according to Budget 2015 amounted to:

(i) 2010-11 - R999 million

(ii) 2011-12 - R1 088 million

(iii) 2012-13 - R1 175 million

(iv)(v) 2013-14 and 2014-15 is not available as yet and is expected to only be tabled in the 2016 and 2017 Budget Reviews respectively.

Reply:

National Treasury has not yet approved my Department’s request for rollovers of R1 600 899 000 for Programme 1, 2, 4 and 5; and R1 557 184 000 in respect of each economic classification from the 2014-15 to the 2015-16 financial year.

National Treasury will only communicate the outcome of the rollover process on or before 11 September 2015 through the approved allocation letters as per the Guidelines of 2015 Adjustment Estimates of National Expenditure.

The non-approval of the requested rollover funds will necessitate the need for my Department to reprioritise the existing allocations for 2015/16 financial year within the programmes. This will result in the rescheduling of some of the infrastructure projects earmarked for the current year.

---00O00---

Reply:

Prior to the introduction of legislation and legislative amendments, the Department assess the socio-economic impact of legislation, including its impact on jobs and the labour market. This was done in respect of the amendments to the Labour Relations Act through a regulatory impact assessment conducted in 2010.

Reply:

The hounourable member should get this information from the Department’s annual report as tabled in Parliament.

 

Reply:

Question 1: Preliminary indications are that the 2015 public sector wage agreement will cost as much as R63.9 billion over and above what is provided for this purpose in the budget baseline over the 2015 MTEF. Of the above amount R41.5 billion is for cost of living adjustments, R11.1 is for medical assistance and R11.4 billion is for housing allowance.

Salary negotiations are taking place at the Public Service Coordinating Bargaining Council (PSCBC), which is established in terms of section 35 of Labour Relations Act 66 of 1995. The main purpose of the PSCBC is to allow Public Service parties to negotiate on transverse matters including terms and conditions of employment, resolve disputes and facilitate hearings to resolve disputes that arise in the Public Service. This excludes matters pertaining to Constitutional Institutions and Public Entities.

Question 2: National Treasury is certain that the agreement can be accommodated within the current expenditure limits. Contingency reserves will play a role in accommodating higher compensation budgets this year, and so will resources available due to projected underspending. Some reprioritisation from other budget lines will also be required from Departments and provinces.

National Treasury is currently coordinating the budget process in preparation for the Medium Term Budget Policy Statement (MTBPS) in Parliament in October 2015. The Minister of Finance will make an announcement at the MTBPS on how costs of the wage agreement will be financed.

Reply:

(a)(b) Zero-rated supplies of goods and/or services are taxable supplies on which VAT is levied at a rate of 0%. Any VAT incurred to make zero rated supplies may be deducted as input tax.

Some examples of zero rated supplies include certain basic foodstuffs; fuel levy goods; paraffin: certain farming goods; the export of goods and services in certain instances; international transport and municipal property rates.

The zero rating of basic food items are intended to provide relief to low-income groups.

The list of zero rated food items includes the following:

Brown bread Brown bread flour (excluding wheaten bran) Dried mealies, and mealie rice Samp Maize meal Dried beans Lentils Edible legumes.

Rice Vegetable cooking oil (Excluding olive oil) Fresh fruit and vegetables Hen's eggs Milk, cultured milk, milk powder and dairy powder blend Pilchards or sardinella in tins or cans

The zero-rate is also applicable to goods or services that are exported provided the relevant legislative provisions are met. This is in line with the destination principle of South Africa’s VAT system whereby exports are free of domestic VAT as consumption of these goods and services takes place outside South Africa and the import of goods attracts VAT.

(i)(ii)(iii) The National Treasury publishes a tax expenditure estimate in the annual Budget Review. The tax revenue forfeited on zero rated items according to Budget 2015 for 2010-11, 2011-12 and 2012-13 are set out in the table below:

Tax expenditure estimates (R million)

Fiscal Year                                         2009/10               2010/11   2011/12   2012/13      

Value-added tax                                  

Zero-rated supplies                             

19 basic food items                                            14 258                   15 497   17 106   18 628  

Petrol                                                                       9 660                    10 845   13 797   15 343

Diesel                                                                         903                      1 107      1 532      1 759

Paraffin                                                                      519                          367        585         611

Municipal property rates                                     3 973                       6 032     7 568      9 598

Reduced inclusion rate for commercials              127                          147       153          175

Accommodation

Subtotal zero-rated supplies                          29 440                   33 989    40 742   46 115

1. Vat relief in respect of basic food items based on National Treasury research of 2010/11 and expenditure survey data
2. Based on fuel volumes and average retail selling prices

Because petrol, diesel and illuminating paraffin are zero-rated for VAT purposes, the resulting difference from a standard rating, when used by final consumers, is regarded as tax expenditure. It was assumed that 20 per cent of petrol sales was used for business purposes (by VAT vendors) and would have qualified as input tax should VAT have been levied at the standard rate. For diesel, it was assumed that 90 per cent of sales was used for business purposes and would have qualified for input VAT should VAT have been levied at the standard rate.

(iv)(v) 2013-14 and 2014-15 expenditure is not available as yet and is expected to only be tabled in the 2016 and 2017 Budget Reviews respectively.

The revenue foregone in respect of exports that qualify to be zero rated was not calculated.

 

Reply:

(a) (i) The total amount spent on direct charges against the National Revenue Fund is   R 512 465 319 000 and the breakdown is listed in the table below. The audit for the National Revenue Fund for the 2014-15 financial year has not yet been finalized. These figures are therefore unaudited. 

(ii) and (b)

Department	Unaudited Amount (R’000)	Legal authority
Presidency – President’s salary	4,830	Sections 2(7) and 3(7) of the Remuneration of Public Office Bearers Act, 1998 (Act No 20 of 1998)
Parliament – Members of Parliament salaries	481,781
Provinces – Equitable share	362,468,075	Schedule 2 of the Division of Revenue Act (Dora Bill)
General Fuel levy	10,190,162	Schedule 1(2) of the Taxation Laws Amendment Act 17 of 2009
State Debt Interest Management Cost of raising loans	114,703,789 37,937 8,245,351	Section 73 of the Public Finance Management Act (PFMA) (Act no1 of 1999)
Higher Education and Training – SETA funds collected	13,838,798	Section 6(4) of the Skills development Levies Act, 1999 (Act No 9 of 1999)
Justice and Constitutional development – Salaries and allowances of Judges and magistrates	2,494,596	Section 2 of Judges’ Remuneration and Conditions of Employment Act, 1989 (Act 88 of 1989) and Section 12 of Magistrates Act, 1993 (Act No. 90 of 1993)

Reply:

The matter is part of the budget process and consideration, if any, will be part of the Medium Term Budget Policy Statement (MTBPS) which will be announced by the Minister on 21 October 2015.

Reply:

1. Yes, the National Treasury does promote broader empowerment objectives through the Financial Sector Charter and financial inclusion policies, as outlined in the policy document “A safer financial sector to serve South Africa better” published in February 2011. The policy aims at increased access to affordable, convenient and appropriate financial services for all South Africans, particularly the poor and vulnerable, and takes into account the legacy of both racial and gender exclusion policies of the past.

Progress has been made in improving financial inclusion in South Africa, resulting in 80% of South Africans using some form of financial services from a regulated financial institution in 2014, up from 55 per cent in 2005. More will be done by setting stretched targets for the financial sector in the Financial Sector Code (FSC) (first adopted in 2003), and focused initiatives by National Treasury’s Cooperative Banks Development Agency (CBDA) established by the Co-operative Banks Act (No. 40 of 2007).

Through the FSC, the National Treasury advocates and promotes the advancement of women via specific targets in respect of access to finance and enterprise and supplier development for women as entrepreneurs and owners of small enterprises. For example:

• The target for procurement spend on suppliers that are 30% black women is 8% of total procurement spend
• The target for transformational infrastructure, black SME financing, black agricultural financing and affordable housing is R48 billion for banks and R17 billion for long-term insurers with recognition levels for certain types of beneficiary entities including 150% for 30% black-women-owned exempt microenterprises (EMEs), 100% for 30% black-women owned qualifying small enterprises (QSEs)

With regard to co-operatives, the CBDA has the mandate to regulate and supervise as well as provide capacity building to deposit taking financial co-operatives, commonly known as Co-operative Financial Institutions (CFIs). The Honourable Member should note that the financial sector is a highly regulated sector to protect both depositors, customers and taxpayers, and this cannot be regarded as overly stringent regulation as suggested by the Honourable Member in the original Question 336 on 26 August 2015 to my colleague the Honourable Minister of Women in The Presidency. The objective of the CBDA includes capacity building, to ensure that the CFI sector is adequately capacitated and therefore facilitates the growth of financial co-operatives.

Based on the sectoral analysis done by the CBDA, as at February 2015 women were empowered by CFIs as follows:

• The 26 CFIs serviced an estimated 7,274 females versus an estimated total of 17,318 members. This ultimately means that there is a 42% women ownership in the registered CFIs.
• CFIs are required to elect board members, for efficient and effective governance. 47% of an estimated 167 board members elected are women.
• 73% of an estimated total of 60 people employed by the CFIs are women.

The capacity building programmes developed and conducted covers a vast number of women particularly from the rural areas. Women have been empowered through financial management training and other training courses and coaching provided by the CBDA.

2. Yes, National Treasury is working with the Department of Women through the CBDA. For example, on 31 July 2015, the CBDA team met with officials in the Department of Women in the Presidency about the overall mandate of the CBDA and capacity building programmes for the CFI sector and discussed possible areas of collaboration. The CBDA will continue to work closely with both the Departments of Women and Small Business Development to assist vulnerable women to set up co-operatives and co-operative financial institutions thereby ensuring the financial empowerment and economic inclusion of these women.

National Treasury in line with its broader financial inclusion objectives, will work towards ensuring all South Africans have access to the benefits of using financial services both as part of the broader development agenda and to address poverty and the inequalities in South African society.