Questions and Replies

Reply:

I have discussed the broad policy imperatives of government relating to empowerment of women in the economy, with the Minister of Women in the Presidency and we collaborate on giving effect thereto.

I have tasked development finance institutions reporting to me to specifically measure and report on efforts to increase industrial funding to women-owned enterprises. Details of these may be obtained from the IDC Annual Report tabled in Parliament. EDD also monitors the share of women in employment.

-END-

Reply:

Standardising all tests across all Government schools is an ideal; however, there are practical realities that dictate the extent to which this can be done. The Department of Basic Education’s (DBE) initiative to set national tests (ANA) for Grades 1-9 is a step in this direction, so that models of good assessment are placed in every class, but this is only limited to Literacy (Language) and Numeracy (Mathematics). The DBE is also piloting the setting of common examinations in Mathematics and Physical Science in Grades 10 and 11. The costs and logistics of doing the same for all subjects could be prohibitive. Subject advisors and other curriculum specialists play a critical role in building the capacity of teachers in high quality assessment. In addition, the Curriculum Assessment Policy Statements (CAPS) document provides clear guidelines for assessment in each of the grades and this assists teachers in this regard.

Reply:

The OR Tambo District Municipality has a capacity in the form of a Technical Director and fully fledged Project Management Unit and there is a plan in place to upgrade sanitation services in the Qumbu town. The OR Tambo District Municipality is in the initial phase of appointing a professional service provider that will prepare a business plan and a technical report to ensure that there is a full waterborne sewerage system that will replace the existing septic tanks and pit latrines in Qumbu Town.

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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 Labour Relations Indaba convened by the Deputy President under the auspices of the National Economic Development and Labour Council (NEDLAC) adopted a Declaration on 4th November 2014. The Declaration contained a number of principles that the constituencies, including government, agreed would guide the work that has been taking place in NEDLAC since then.

One of the principles agreed to was to engage on the modalities of introducing a national minimum wage in South Africa. The election manifesto of the ruling party, the African National Congress, also pledges to investigate the modalities for the introduction of a national minimum wage as one of the key mechanisms to reduce income inequality.

The Department of Labour does therefore not have to take a decision on whether to introduce a national minimum wage. This is both a decision of the current administration and one that has been agreed with our social partners.

It is in relation to the modalities of a national minimum wage, including the level at which it is to be set, that the Department is now working towards a recommendation that will be made to the rest of government.

END

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:

1.

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

2.

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

Reply:

The importance of community arts and the development and upgrading of community arts infrastructure has been recognised as a driver of social cohesion and nation building in Outcome 14: Nation Building and Social Cohesion. The community arts programme is a contributor to the Sub-Outcome: Equal Opportunities, Inclusion and Redress. Approved by Cabinet, Outcome 14 stipulates that the Department of Arts and Culture, within the 5 year Medium Term Strategic Framework (MTSF), will build 15 new community arts centres, refurbish 80 centres and activate 500 community arts programmes by 2018/19. The focus of this work will be rural and township areas.

Reply:

 

1. The plant is currently not in working order because the plant was affected by floods during 2014. In addition, theft and vandalism of mechanical and electrical equipment contributed to the plant not working properly.

(2) My Department has not done any intervention since the Greater Sekhukhune District Municipality proactively appointed the Lepelle Northern Water Board under a bulk contract to operate and maintain the plant. The Lepelle Northern Water is in the process of finalizing the appointment of a service provider to refurbish the Works (the process is at adjudication stage of appointment of the service provider). It is envisage that the plant will be fully restored to its normal operational status during December 2015.

(3) Yes, tests have been done at the plant's outlet. Test results are attached as Annexure A.

(4) Yes, a non-compliance notification has been issued to the municipality for not taking reasonable measures to prevent pollution from occurring. However, the municipality is in the process to refurbish mechanical and electrical components of the waste water plants. This is set to improve the quality of effluent prior to discharge.

(5) 29.76 %.

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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:

The trips undertaken were in line with the Parliamentary and Cabinet Programme as approved by Parliament and Cabinet respectively. The costs for trips undertaken by the Minister and the Deputy Minister were catered for in the 2014/15 financial year under programme 1: Administration.

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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.

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:

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:

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.

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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:

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:

The Minister of Public Works

(1)(a)(i) R290 379.07

(ii) 41

(b)(i) and (ii)(aa) and (bb) R0.00

(2)(a)(i) R451 441.74

(ii) 57

(b)(i) and (ii)(aa) and (bb) R0.00

 

___________________________________________________________________

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:

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:

Arrangements that apply to retiring members of the Government Employees Pension Fund (GEPF) are governed by rule 12.3 of its rules, which provides that "if a member resigns, retires or dies as contemplated in rules 14.3.2, 14.4.1 or 14.5.1, he or she has the right to transfer his or her actuarial interest in the Fund to an approved retirement fund: Provided that such transfer shall be subject to the provisions of rule 14.4.1(b)...".

A pensioner who is already receiving a pension from the GEPF after retiring would have had more than 10 years of pensionable service, and would have received a gratuity/lump sum on retirement and a monthly pension or annuity – the pensioner would thus have had the opportunity to invest elsewhere (or spend) the gratuity/lump sum received on retirement as he or she sees fit, but cannot do so with the portion invested in an annuity. It should be noted that there are benefits to an annuity as they provide a monthly income to the retiree, and in most cases, the benefits of the GEPF after retirement are good for members as they provide significant value compared to other annuities on the market. Further, there is no investment risk for retirees, as the GEPF is a defined benefit fund.

For those members still employed and contributing to the GEPF, only those members with more than 10 years of pensionable service will be able to qualify for the gratuity/lump sum and the monthly pension. These members cannot transfer their actuarial interests to an approved retirement fund if they retire from the GEPF.

Members with less than 10 years of pensionable service do not qualify for a monthly pension or annuity but can purchase an annuity/pension with an approved retirement fund of their choice with the gratuity/lump sum provided by the GEPF upon reaching retirement. Therefore, pensioners who fall within the provision of rule 14.3.2, which applies to pensioners with less than 10 years of pensionable service, are entitled to transfer their pension benefit to an approved retirement fund of their choice on retirement.

I would like the Honourable Member to join me in encouraging South Africans to preserve their retirement savings, given the risks and vulnerabilities they face when resigning from their jobs and cashing out their pensions prematurely. Government last year expressed its concern when some members of the GEPF were resigning from their jobs, probably because they were over-indebted or falling for false rumours on retirement reforms. Those resigning were not only giving up on their pension fund benefits (which are far better than most private pension funds), but also on certain non-contributory benefits (e.g. post-retirement medical benefits), which are funded by Government as the employer. No law has changed with regard to members’ access to their pension benefits; meaning that members of the GEPF will always be entitled to a gratuity/lump sum and an annuity, as per the Fund rules. Further, members resigning from pension funds before retirement will still be able to withdraw their benefits, though the withdrawal may attract higher tax liabilities.

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:

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:

(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:

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:

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:

1. (a) The sale of Portion 87, 148, 149 was sold by the Department of Local Government and Housing. The Land Availability Agreement that was signed between the Department and Local Government requires that the Department signs a relocation agreement for the Sizwe Tropical Disease Hospital. This agreement between the Developer and the department of Health is not yet finalised.

(b) The agreement to relocate would not have been captured in the Final Environmental Impact Assessment report. As per the Land Availability Agreement, the sale was for the whole of Portion 87, 148,149 for the development of residential houses which necessitated the relocation of the hospital to make way for the proposed residential development.

2. There has not been any consultation with the residents nearby the new site as yet. The Department has not finalised the relocation agreement with the developer and all necessary consultations will be done as part of the stakeholders’ engagement on the project which has not commenced as yet.

(3) The proposed relocation site is government owned. It is part of the Edenvale hospital site portion 87 Rietfoitein No 61-IR.

END.

Reply:

I responded to this question during the debate on the Adjustments Appropriation Bill of 2014, held on 20 November 2014, and I refer you to the Hansard and my detailed response to this question as captured therein.

Reply:

 

1. Armscor is not aware of an indemnity provided to Denel by Government. The contract between Armscor and Airbus was cancelled and Airbus duly refunded Armscor its advanced payments accordingly and therefore no obligations on the part of Armscor arose as a consequence of the cancellation. Armscor is not aware of Denel and Government’s obligations.
2. Armscor is not aware of the claims made by Denel and the amount paid for the claims. The query should be referred to Denel.
3. Armscor is not aware of whether an oversight has taken place in respect to Denel’s claims. The question should be referred to Denel.

Reply:

The Department of Health acknowledges that skin lighteners are as much a social problem as a medical problem. The public regards skin lighteners as cosmetics and do not see the harm in the use of these products.

a) Previously the Department of Health conducted awareness campaigns on the dangers of using specific hydroquinone containing products through posters and pamphlets, sensitizing the public in this regard. It is the intention of the Department to continue with these awareness campaigns.

b) The Department, in conjunction with Commercial Crime, Directorate for Priority Crime Investigation, SARS, Interpol, SAPS, National Regulator for Compulsory Specifications (NRCS) and the Company of Intellectual Property Commission (CIPC) ran joint operations in Pretoria, Johannesburg, Durban, Port Elizabeth and Cape Town from 19-21 August 2015. During the raids, illegal counterfeit and skin lighteners to the value of about R26m were confiscated, people arrested and a number of case dockets opened.

As per the legal processes, these matters will be attended to by the courts with appropriate fines imposed to the traders selling these products.

c) Recently in a case brought by the Department in a matter against traders selling illegal medicines in the Tembisa Magistrate’s Court (1 September 2015), the court found the accused guilty as charged with a fine of 1 year imprisonment or payment of a fine of R10 000.

END.

Reply:

As of 1 October 2015 I have appointed a turnaround team at the Department of Military Veterans to focus on all the short comings of this Department and amongst others they will focus on the cleaning up of the database through verification. At present those military veterans who have been verified receive benefits and as the database is cleaned up more veterans will enjoy these benefits.

Reply:

1. The matter of communicating how the proposed development will impact the nearby residents is not the responsibility of the Department of Health. Such assessments and communication of the impact to the nearby residents will be done by the Developer and the Department of Local Government and Housing.

(2) The proposed development was initiated by the Department of Local Government and Housing. Any consultation and notifications as to the dangers and potential health risks posed by the proposed development will be dealt with by them and not the Department of Health.

END.

Reply:

 

1. Yes

(a)(i) and (ii) 93 Cuban nationals form part of a skills exchange programme not a contract of employment

(b) and (c) Transport: 57 members working on maintenance, repair and preservation of military vehicles; Airforce: 18 engineers responsible for technical assistance on systems of combat aircrafts, transport aircrafts and helicopters; Military health services: 7 specialists advising on the improvement of military medical professional training.

(d) This is not a contract of employment but an exchange of professional and technical skills.

(e) For the 2015/16 financial year a total of R150 million has been budgeted for this contract.

Reply:

As of 1 October 2015 I have appointed a turnaround team at the Department of Military Veterans to focus on all the short comings of this Department and amongst others they will focus on the cleaning up of the database through verification.

Reply:

1 (a) Co-operatives Training Programme and Skills Development Training Programme determined by the needs of individual military veteran.

(b) Co-operatives Training Programme - Both accredited by the Small Enterprise Development Agency (SEDA) provided by accredited training providers from the Agency.

(c) Co-operatives Training Programme - Three hundred and sixty eight (368)

Skills development - 698

(d) None at the moment for Co-operatives Training Programme

Skills Development - Public and private institution and the maximum cost permitted to pay per student is R40 000.00

2. An audit was conducted on the type of businesses that military veterans own, what they would like to start and the support required to start and grow their businesses.

In terms of Skills Development no audit has been conducted because of the following reason; each military veteran advice the department on their areas which they need intervention on.

3. (a) and (b)

During the DMV roadshows, Military Veterans who attended the sessions in all Provinces were captured on attendance registers, questionnaires were distributed according to Military Veteran’s interest and a survey was conducted. The Military Veterans who showed interest in forming co-operatives were invited for this programme. The second group of Military Veterans was the ones who completed the “Aspiring” questionnaire and indicated interest in starting any form of business. The third group that was approached were the Military Veterans with informal businesses (Informal traders) and the last group was the ones with registered businesses but have not started operating and did not know how to get their businesses off the ground. A phoning exercise was embarked upon to establish whether the above-mentioned groups would like to form co-operatives. All these groups were then combined together to benefit in the Co-operatives Training Programme.

Not applicable to Skills Development.

Reply:

The three indicators were removed during the 2015/16 financial year in response to guidance received from DPME and the Framework for Strategic Planning and Annual Performance Plans of the Department, in an effort for the Department to create performance indicators that are aligned to the national outcomes and reflect value for money.

Reply:

Integration has long been closed.

Reply:

The SAAF does not target any specific institution but people who have an interest in aviation.

Reply:

The Secretary of Defence cooperated with the Office of the Auditor General in relation to this matter.

Reply:

(a)(i) Due to avionic obsolesce and interior degradation due to age.

(ii) Full avionic refurbishment and interior refurbishment.

(iii) Avionic refurbishment was R10.2 million and the interior refurbishment was R381000.

b) (i) Never before

(ii) No future refurbishment is planned.

Reply:

This disciplinary case has been finalized and the employee has been dismissed following the outcome of the disciplinary hearing.

Reply:

Colonel Nhlanhla Dube left the employment of the South African Air Force in 2013, thus rendering the remainder of the question irrelevant.