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19 August 2015 - NW2985

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

(1)What progress has been made in the (a) establishment of the Black Economic Empowerment Commission and (b) appointment of the relevant commissioner? (2) whether he is considering the appointment of a certain person (name furnished) to the position of commissioner; if so, on what basis?NW3490E

Reply:

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

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

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

19 August 2015 - NW2929

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Alberts, Mr ADW to ask the Minister of Trade and Industry

(1)Why did the investment protection agreement between South Africa and Zimbabwe not retroactively provide for the protection of the property rights of South African citizens against expropriation and/or illegal occupation before the agreement came into force;

Reply:

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

 

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

Reply:

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

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

Reply:

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

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

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

19 August 2015 - NW2915

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Madisha, Mr WM to ask the Minister of Trade and Industry

Whether the reindustrialisation of the country is taking place at a significant and sustained rate to allow for (a) large-scale job creation, (b) a positive impact on the gross domestic product, (c) increased fixed foreign direct investment, (d) annual increases in exports in real terms and (e) the substantial beneficiation of ores and minerals mined in the country; if not, why not; if so, what (i) are the relevant details and (ii) is the impact of reindustrialisation on economic growth?

Reply:

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

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

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

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

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

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

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

Progress made on the re-industrialisation programme:

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

Automotive industries:

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

Clothing, Textiles, Leather & Footwear:

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

Metal Products, Engineering & Capital Equipment:

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

Green Economy:

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

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

Agro-processing:

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

Industrial Finance:

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

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

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

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

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

Procurement localisation (designations):

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

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

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

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

Pharmaceuticals:

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

18 August 2015 - NW2840

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Figg, Mr MJ to ask the Minister of Trade and Industry

(1)What is the detailed breakdown of all businesses who have received support from his department to attend (a) trade shows, (b) pavilions abroad in the (i) 2013-14 and (ii) 2014-15 financial years and (c) in each case, what is the (i) name and (ii) location of the business, (iii) amount of support received and (iv) industry or sector the business is involved in;

Reply:

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

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

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

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

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

Question

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

Response

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

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

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

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

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

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

Question

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

Response

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

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

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

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

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

18 August 2015 - NW2929

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Alberts, Mr ADW to ask the Minister of Trade and Industry

(1)Why did the investment protection agreement between South Africa and Zimbabwe not retroactively provide for the protection of the property rights of South African citizens against expropriation and/or illegal occupation before the agreement came into force;

Reply:

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

 

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

Reply:

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

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

Reply:

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

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

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

18 August 2015 - NW2837

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

(a) Is there any further progress on the negotiations with the National Treasury to extend the budget available for the S12i Tax Incentive and (b) what are the relevant details in this regard?

Reply:

 

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

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

18 August 2015 - NW2836

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

How many (a) persons have applied for support under the Black Industrialist Programme and (b) applications have been approved;

Reply:

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

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

Response:

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

13 August 2015 - NW2834

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Macpherson, Mr DW to ask the Minister of Trade and Industry

(1)With reference to the procurement of locomotives and coaches by the Passenger Rail Agency of South Africa (PRASA), (a) what discussions did he hold with PRASA: (b) the Department of Transport to ensure that local (i) content and (ii) procurement was possible for the specified locomotives and coaches; (2) was the procurement of locomotives and coaches by PRASA designated by him for local content; if not, why not? NW3307E:

Reply:

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

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

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

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

 

12 August 2015 - NW2839

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Figg, Mr MJ to ask the Minister of Trade and Industry

(1) Has his department had discussions with the National Treasury about the proposed new procurement regulations for tenders under R10 million; if so, what are the (a) substance of these discussions and (b) further relevant details; (2) Has his department found that the proposed regulations are at odds with the (a) Broad-Based Black Economic Empowerment (B-BBEE) Act, Act 53 of 2003 and (b) B-BBEE Codes of Good Practice?NW3312E.

Reply:

  1. and (2)

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

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

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

12 August 2015 - NW2838

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

(1) With regard to the procurement of clothing, textiles, and leather goods, how many applications has his department received for exemption from the 100% local content requirement to import raw materials (2) What is the turnaround time for responding to the specified applications (3) Is his department considering ways of making the administrative process for establishing local content in the clothing, textiles and leather goods sector more (a) practical and (b) user friendly? NW 3311E

Reply:

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

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

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

12 August 2015 - NW2835

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Macpherson, Mr DW to ask the Minister of Trade and Industry

(1)What discussions did he hold with the Department of Energy regarding the designation of local content for the Government’s proposed nuclear build programme; (2) what steps did he take to ensure that local content requirements were included in the various memoranda of understanding signed by the specified department; (3) what (a) value and/or (b) benefits will the local manufacturing sector derive from the nuclear build programme, including (i) job creation and (ii) investment in manufacturing; (4) has any person from his department been appointed to assist the specified department with local content and procurement; if so, (a) who has been appointed, (b) how were they selected and (c) what qualifications do they hold? NW3308E

Reply:

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

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

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

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

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

 

30 July 2015 - NW2581

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Mokgalapa, Mr S to ask the Minister of Trade and Industry

(1) With regard to the recently established National Export Advisory Council, how will the council enable the unlocking of opportunities and unleashing of barriers to trade whilst dealing with developmental issues and facilitating market access;

Reply:

THE NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

 

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

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

Question

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

Response

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

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

Question

(3) what remuneration will each council member receive;

Response

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

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

Question

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

Response

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

Question

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

Response

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

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

30 July 2015 - NW2605

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De Freitas, Mr MS to ask the Minister of Trade and Industry

(a) What tests have been undertaken by the National Regulator for Compulsory Specifications pertaining to (i) road safety and (ii) vehicle safety in the (aa) 2012-13, (bb) 2013-14 and (cc) 2014-15 financial years and (b) In each case, (i) what were the outcomes of each specified test, (ii) when was each specified test undertaken and (iii) under what conditions were the specified tests undertaken?

Reply:

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

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

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

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

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

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

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

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

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

03 July 2015 - NW2417

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Trade and Industry

What amount did (a) his department and (b) each entity reporting to him spend on advertising in (i) Sowetan and (ii) Daily Sun in the (aa) 2012-13, (bb) 2013-14 and (cc) 2014-15 financial years?

Reply:

Response from the Department

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

Advertising Cost: 2012/13

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

Newspaper

2012/13 Financial Year

2013/14 Financial Year

2014/15 Financial Year

Sowetan

R1 283 046.88

R1 146 164 .88

R511 733.97

Daily Sun

0

0

0

Response from the Entities

Entity

b (i)(aa)

b (i)(bb)

b (i)(cc)

b(ii)(aa)

b (ii)(bb)

b(ii)(cc)

Companies and Intellectual Property Commission (CIPC)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Export Credit Insurance Corporation (ECIC)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

National Credit Regulator (NCR)

R 237 304

R 244 263

R 209 111

R 149 136

R 496 540

R 109 470

National Consumer Tribunal (NCT)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

National Empowerment Fund (NEF)

R 135 254.40

R 111 960

R 657 600

R63 354

R 6 960

R 37 040

National Gambling Board (NGB)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

National Lotteries Commission (NLC)

R 56 363

R 461 183

R 438 039

R 78 229

Not Applicable

R 112 783

National Metrology Institute of South Africa (NMISA)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

National Regulator For Compulsory Specifications (NRCS)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

South African Bureau of Standards (SABS)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

South African National Accreditation System (SANAS)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

National Consumer Commission (NCC)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Companies Tribunal (CT)

Not Applicable

Not Applicable

R 77 278.65

Not Applicable

Not Applicable

Not Applicable

02 July 2015 - NW2447

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Trade and Industry

(1)With regard to the published Liquor Policy Review, has his department conducted a regulatory impact assessment to ascertain what the cost to the economy would be in terms of job losses should the specified policy be implemented;

Reply:

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

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

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

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

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

02 July 2015 - NW2452

Profile picture: Hill-Lewis, Mr GG

Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

Has his department or any of the entities reporting to him awarded any funding for the production of (a) the Uzalo television drama, produced by certain persons (names furnished) or (b) any other (i) film or (ii) television production involving the specified two individuals; if so, what are the relevant details

Reply:

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

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

 

Entity

a

b (i)

a(ii)

Companies and Intellectual Property Commission (CIPC)

Not Applicable

Not Applicable

Not Applicable

Export Credit Insurance Corporation (ECIC)

Not Applicable

Not Applicable

Not Applicable

National Credit Regulator (NCR)

Not Applicable

Not Applicable

Not Applicable

National Consumer Tribunal (NCT)

Not Applicable

Not Applicable

Not Applicable

National Empowerment Fund (NEF)

Not Applicable

Not Applicable

Not Applicable

National Gambling Board (NGB)

Not Applicable

Not Applicable

Not Applicable

National Lotteries Commission (NLC)

Not Applicable

Not Applicable

Not Applicable

National Metrology Institute of South Africa (NMISA)

Not Applicable

Not Applicable

Not Applicable

National Regulator For Compulsory Specifications (NRCS)

Not Applicable

Not Applicable

Not Applicable

South African Bureau of Standards (SABS)

Not Applicable

Not Applicable

Not Applicable

South African National Accreditation System (SANAS)

Not Applicable

Not Applicable

Not Applicable

National Consumer Commission (NCC)

Not Applicable

Not Applicable

Not Applicable

Companies Tribunal (CT)

Not Applicable

Not Applicable

Not Applicable