Questions and Replies

Reply:

The Department has provided a brief report on the work done on updating the previously approved standards. It does not adequately explain the need for the time taken and I have requested a more detailed reply. A supplementary reply will be furnished within a week.

I have also requested the Department to review the processes to ensure that they are not cumbersome and that duplications in processes are removed, as part of the red-tape review.

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Reply:

1. I am advised that the proposed specifications were published for public comment and that the dtic has considered the comments and is currently finalizing the publication of the Compulsory Specification for Performance of general service lamps (VC 9109); and the Safety of general service lamps (VC 9110).

The new specifications are expected to be published in the Government Gazette by September 2022.

2. The Department does not table technical regulations/compulsory specifications at the National Assembly prior to implementation. The matter is regulated by section 13(1) of the National Regulator for Compulsory Specifications Act, 2008 (Act No. 5 of 2008) which prescribes the process for finalizing regulations. The Honourable Member is encouraged to provide any submission on the matter to the Department within the next two weeks. Although the deadline for public comment has passed, I will request the Department to take these into account prior to submitting their final report to me. the dtic and the technical agencies would be subject to oversight by the National Assembly through the Portfolio Committee in relation to the work they have undertaken.

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Reply:

The IDC provides funding for companies based on the mandate to industrialise the economy and support broadening the base of the economy. A number of IDC investments are successful whilst some projects fail, for a range of reasons. These reasons may include changes in market conditions resulting in changes in either demand or costs, failure by investors to adhere to their commitments and counter-party challenges.

As a development finance institution, the IDC will normally take a higher risk profile than commercial banks.

The IDC publishes information in its annual reports on loans and equity approvals or disbursements that it makes and the level of impairment to its book, which includes amounts written off. In a number of cases, the IDC pursues recovery of funds where there is a legal basis for doing so, for example, that an investor has applied the funds for purposes different to what is in the funding agreement.

I have requested the IDC to review a number of its transactions in East London with a view to identifying common or unique reasons for investment projects failing or succeeding and will provide the Honourable Member with a supplementary reply on conclusion of the study, citing specific project details as appropriate.

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Reply:

Industrial Parks fall within the responsibility of Provinces and in some instances, municipalities. The dtic considers requests for funding for infrastructure improvements, typically on areas such as fencing and security. The Department has tabled a report on SEZs and Industrial Parks at the Portfolio Committee of Trade and Industry, addressing the challenges with the existing model and the need for reform.

The Department has provided more details on developments relating to the Ekandustria Industrial Park, which I set out below.

It advises that the Ekandustria Industrial Park application for Phase 2, was submitted on 10 November 2020 by Mpumalanga Economic Growth Agency (MEGA) to DBSA. This was to solicit assistance from DBSA to finalise the Bill of Quantity and Project Schedule before submission to the dtic. The department has not adjudicated on the application from MEGA for Ekandustria due to incomplete information and delays in responding to requests to provide the outstanding information. In an effort to assist the Province, the IDC based PMU project support team has been requested to provide support.

In respect of the second part of the question, the Department advises:

(a) (i) – (iii)

There was no budget sum set aside because the Phase 2 application has not been submitted for the 3-years in question.

(b) No Phases were delivered and implemented prior to application approval being granted.

(c) (i) – (ii)

Further Phase development is dependent on Phase 2 approval being granted and successfully implemented.

(d) There are no budgetary estimates applicable since no application has been approved for the said period.

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Reply:

The project is under the control and management of the Limpopo province.

The Department has contacted the CEO of Musina-Makhado Special Economic Zone (MMSEZ) in order to respond to the questions posed, and the CEO has furnished the department with the following reply:

1. The project is behind schedule due to delays in the process of securing Environmental Impact Assessment (EIA) authorisation on time. The timelines for the implementation of the Musina-Makhado Special Economic Zone (MMSEZ) are dependent on amongst others, the granting of the environmental authorisation. The environmental authorisation granted on 23rd February 2022 is currently the subject of an appeal process. As a result, no development can take place on the site until the appeal processes are completed.

2. Environmental authorisation was granted on 23rd February 2022 and currently undergoing appeal process.

3. It is anticipated that majority of the job opportunities to be created in the MMSEZ will benefit the people of Limpopo, based on the available skills. Priority will be given to local entrepreneurs for the majority of business opportunities in line with the existing government policies and regulations. A comprehensive enterprise development strategy has been developed for the integration and empowerment of local Small, Medium and Micro Enterprises (SMMEs) in the implementation of the project.

The Honourable Member is encouraged to engage directly with the province and the SEZ Management to get more details about the project.

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Reply:

I advise the Honourable Member that the management of the SEZ is with the Provincial government and queries should be directed to the appropriate sphere.

To assist with the question, the Department sent the question to the CEO of Saldanha Bay Industrial Development Zone (IDZ), who provided the following information:

a) Column A – name of companies that have invested;

b) Column B – total amount invested to date by each company; and

c) Column C – details of the industry / business conducted by each company.

Column D indicates the actual operational status of each investment. Only three (3) companies are operational and the rest are at different stages of: contracting, lease drafting, or to commence with construction. The SEZ does not yet wish to have details of two tenants published until the transactions have been completed.

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Reply:

During the Budget Vote on Trade and Industry, I noted that building an enabling environment for industrialisation requires securing our key network infrastructure, such as energy and logistics, and protecting our electrical grid and rail network from the continued threat of scrap metal syndicates. I committed that by the end of July, the Department will have developed and tabled a draft policy on scrap metal, which will introduce a blend of domestic and export measures to address illegal trade in copper cable and scrap metal.

Since then, research has been completed and Cabinet has been briefed on the overall strategy. A document setting out the draft policy is being developed and will be published for public comment shortly.

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Reply:

First, proposals to address a broad public policy on dealing with wage gaps in industry, were developed and drafted into legislation, in the form of a Companies Amendment Bill, 2021 (the Bill)

Second, these proposals were discussed with social partners in Nedlac, where the principle of disclosure of the wage gaps and responsibilities assigned to shareholders, were agreed

Third, Cabinet was briefed on the proposed changes

Fourth, the proposals were published for public comment.

The public comments are currently being considered and in the Department’s Budget Vote this year, I indicated that the anticipated timeframe for the Bill be submitted to Cabinet for consideration, which is within the next three months.

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Reply:

The question replied to in PQ 1464 dated 22 April 2022. See submitted reply below.