Questions & Replies No 601 to 625

2010-03-26

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[PMG note: Replies are inserted as soon as they are provided by the Minister]

Question 601

Dr P J Rabie (DA) to ask the Minister of Trade and Industry:

Whether the Industrial Development Corporation (IDC) finalized the Government's role in establishing a local electrical vehicle industry; if not, why not; if so, what are the relevant details? NW717E

Response:

The Department of Trade and Industry is currently working with the Department of Science and Technology as well as the Industrial Development Corporation, amongst others, to determine and finalise a comprehensive role for Government in the establishment of a local electric vehicle industry.

Exploring the prospects for establishing an electric vehicle industry is part of the recently announced Industrial Policy Action Plan (IPAP2). Efforts are underway to provide investment support to local manufacturing for both the electric vehicle and its components, including the battery. Other related issues such as the battery charging infrastructure, consumer education and demand stimulus are also being explored in an integrated process to achieve optimum results in the shortest possible time.

QUESTION NO.: 602

DATE OF PUBLICATION: 5 MARCH 2010

Dr P J Rabie (DA) to ask the Minister of Economic Development:

Whether any provision is made in the new industrial policy action plan (IPAP) for green industries which will include the generation of sustainable energy in particular for the manufacturing of domestic solar water heaters; if not, why not; if so, what are the relevant details? NW718E

REPLY

The Industrial Policy Action Plan (IPAP) makes specific provision for green industries in the section on "Qualitatively new areas of focus" under the section 12.2 "Green and energy-saving industries". A summary of the section dealing with solar water heaters (SWHs) is contained in Annexure 1. The information gives an indication of the challenges and opportunities that we confront in relation to SWHs.

IPAP forms part of a larger set of inter-related policies and strategies towards a new growth path. The new growth path work has identified the green economy as one of the key jobs drivers in the medium and long term and research has been conducted on sustainable energy as part of this work, which will be released in due course.

In developing and implementing a new growth path we will seek to maximise South Africa's participation and benefit from green industries in the reduction of carbon emissions on the one hand, and the stimulation of the local economy and the advancement of the decent work agenda on the other.

Annexure 1: Green Industries in IPAP

The domestic solar water heating initiative has the potential to greatly reduce South Africa's CO₂emissions. Of the SWHs installed domestically in South Africa, the International Energy Agency estimates over 100 tons of CO₂ emissions were avoided. Aside from the environmental benefit potential, SWHs also provide an opportunity for employment generation from manufacturing to installation and maintenance. The experience of countries like Australia has also shown that domestic SWH promotion can lead to the establishment of competitive manufacturing industries and contribute to export earnings.

Solar power, and in particular SWHs, are a viable short term option due to South Africa's relative solar intensity. There are 11 million houses in South Africa, indicating a large potential market for SWHs. Industrial application of SWHs will also increase demand significantly. IPAP notes that the current size of the SWH market is approximately 35 000 units per annum or 100 000 m² of solar collectors. Imports of SWHs are growing rapidly and it is estimated that importers captured 40% of the market in 2009. The total sales in the industry are approximately R220 million per year. Indications are that most companies are currently producing below capacity constrained by uncertainty regarding demand and market growth, resulting in the industry being characterised by small-scale manufacture and imports.

QUESTION QUESTION NO: 603

PUBLISHED IN INTERNAL QUESTION PAPER NO 06 OF 5 March 2010

Mr N J J van R Koornhof (Cope) to ask the Minister for Cooperative Governance and Traditional Affairs:

(1) What are the respective debt levels as a percentage of turnover for the metropolitan local government of (a) Cape Town, (b) Johannesburg, (c) Durban, (c) Nelson Mandela Bay (Port Elizabeth), (e) Bloemfontein and (f) Tshwane (Pretoria);

(2) Whether any of their credit ratings were lowered in the past two years; if not, what is the position in this regard; if so, what are the relevant details? NW725E

Reply

The information requested is not available within the Ministry and the Department of Cooperative Governance and Traditional Affairs. All municipalities have been contacted and a full response to the question will be provided to the question as soon as all information has been furnished by the said municipalities.

QUESTION NO. 604 (NW726E) INTERNAL QUESTION PAPER NO 6

DATE OF PUBLICATION: 05 March 2010

Mr N J J van R Koornhof (Cope) to ask the Minister of Water and Environmental Affairs:

Whether the environmental impact study on the crossing point over the Limpopo River to link Zimbabwe and Mozambique to South Africa in the Great Limpopo Trans-Frontier Park was completed; if not, why not; if so, when will the crossing point be opened?

Mr. N J J van R Koornhof (Cope) SECRETARY TO PARLIAMENT

HANSARD

PAPERS OFFICE

PRESS

604. THE MINISTER OF WATER AND ENVIRONMENTAL AFFAIRS ANSWERS:

The environmental impact study on the crossing point over the Limpopo River to link Zimbabwe and Mozambique to South Africa in the Great Limpopo Trans-Frontier Park is still in process.

The draft scoping report will be submitted to the Great Limpopo Trans-Frontier Park Joint Management Board on 18 March 2010.

After that, the final scoping report will be submitted to all the relevant authorities and role players. At this stage it is not possible to speculate on whether the application will be authorised and therefore also if and when the crossing point will be opened.

QUESTION NUMBER: 605

DATE FOR PUBLICATION: 30 MARCH 2010

DATE REPLY SUBMITTED: 13 MAY 2010

MR L S NGONYAMA (COPE) TO ASK THE MINISTER IN THE PRESIDENCY: PERFORMANCE MONITORING AND EVALUATIION AS WELL AS ADMINISTRATION:

Whether the inter-ministerial committee set up by the Government to co-ordinate the anti-corruption drive has already begun to initiate programmes to root out corruption; if not, (a) what is the blockage and )b) where is it anticipated to get off the ground; if so, (i) when was the programme initialised, (ii) how will the programme work, (iii) how will procedural delays be overcome, (iv) what measures are in place to deal with offenders and (v) how will the procurement process be made 100% transparent?

NW727E

REPLY:

The Inter-Ministerial Committee on Anti-Corruption, has been engaging relevant stakeholders and will report to Cabinet on its work. Cabinet will then communicate on the report.

Question 606.

Ms C M Kotsi (Cope) to ask the Minister of Trade and Industry:

Whether the Industrial Policy Action Plan is intended to convert the entire economy into a sustainable green economy; if not, why not; if so, what steps will be taken to place the country at the forefront of the green revolution?Nw728E

Response:

The Industrial Policy Action Plan (IPAP) is one, amongst other interventions, to begin the process of ensuring that our economy is placed on a path towards sustainable growth and development in every respect, including with respect to environmental considerations.

Well known and increasing global concerns in relation to carbon emissions, climate change, energy and water costs and efficiency, renewable energy generation and waste management, amongst other considerations, make this a necessity.

In addition, as indicated in the IPAP a growing threat of 'eco-protectionism' from advanced industrialized countries, in the form of tariff and non-tariff measures such as carbon taxes and restrictive standards, poses an additional threat and potential barrier to industrial development. All these and other considerations mean that there are both serious threats and opportunities for the country and our industrial and economic development.

But none' of these measures can be achieved in an overnight 'conversion'. the dti is working closely with other departments including the Economic Development Department. The Department of Science and Technology and the Department of Environmental Affairs, The Department of Tourism, as well as government's social partners - business, labour and civil society - in a process to develop a strategic long term approach to integrated and sustainable economic development.

With respect specifically to industrial development, the IPAP spells out 'quick wins' which can be achieved to meet the challenges posed by climate change and environmental concerns and make use of the opportunities that arise there from. Thus for example the policy proposal and plan for a national approach to mandatory installation of solar water heaters will serve to meet environmental

QUESTION NO.: 607

DATE OF PUBLICATION: 05 March 2010

Ms C M P Kotsi (Cope) to ask the Minister of Public Enterprises:

Whether there have been any inter-ministerial resolutions in support of the new growth plan to address the problem of an unreliable and expensive rail and ports system; if not, why not; if so, what (a) agreements are in place to achieve a more desirable outcome, (b) timeframes have been agreed to and (c) hurdles remain? NW729E

REPLY:

There have been no explicit inter-ministerial resolutions between the Minister of Public Enterprises and any other Minister in respect of the 'new growth plan'.

(a) The Minister of Public Enterprises and the Minister of Transport are currently engaged in an inter-ministerial bi-lateral to pro-actively address policy issues for the future of ports and rail. In addition, the Minister of Public Enterprises, as shareholder representative, has entered into a Shareholder Compact with Transnet which focuses on achieving operational improvements. A range of operational key performance indicators (KPIs) have been included and target improving reliability and performance of rail and port services. KPIs, which limit price increases to levels below inflation in areas where there is no price regulation, have also been included. The Ports Regulator, established as part of the National Ports Act, is responsible for approval of port-related charges of the National Ports Authority (a division of Transnet).

(b) The timeframe for improvements as contained in the Shareholder Compact is from 1 April 2010 to 31 March 2011.

(c) Improving operations, reliability and ensuring market-related pricing remain ongoing challenges. Transnet has committed itself during the 2010/11 financial year to achieving a 'quantum leap' in operational performance.

This is included as part of its five year Corporate Plan provided to the Department of Public Enterprises and National Treasury.

QUESTION: 608 FOR WRITTEN REPLY

608. Ms C M P Kotsi (Cope) to ask the Minister of Trade and Industry:

Whether his department has had any face-to-face interaction with identified offenders to help solve the problem of (a) monopolistic pricing of key intermediate inputs and (b) the purchasing of outputs; if not, why not; if so, (i) what interaction, (ii) with whom and (iii) what were the consequences?W730E

Response:

With respect to 'identified offenders', the Competition Commission is the responsible government entity tasked with identifying and investigating anticompetitive conduct. Once a case has been referred to the Competition Tribunal for a decision, it would be inappropriate and improper for the dti to engage directly with these firms.

However with specific reference to the monopolistic pricing of key intermediate inputs (a) the following applies. In the case of the steel industry, the department has been in engagements with ArcelorMittal (South Africa), over a number of years to give effect to the implementation of a developmental pricing model. which the steel producer committed to at the time of Iscor's unbundling (the 2001 agreement). The intention of this engagement is to lower the domestic steel price to facilitate further downstream activities and is not tied to any contravention by ArcelorMittal (South Africa), of the Competition Act.

A key consequence has been ArcelorMittal's agreement to apply a system of export rebates for a range of steel products sold to downstream processing firms for eventual export. A further consequence was ArcelorMittal's decision to price its steel based on a 'basket' of prevailing domestic steel prices in selected countries instead of import parity pricing. With respect to the purchasing of outputs (b), the dti has engaged with the SA Fruit and Vegetable Canners Association (SAFVCA) in 2009 to discuss the potential impact of rapidly rising tin prices on the sectors international competitiveness. As yet. there are no consequences flowing from this engagement.

QUESTION NO: 609

DATE OF PUBLICATION: 5 March 2010

QUESTION PAPER NO: 6

DATE OF REPLY: 12 February 2010

Mrs J D Kilian (Cope) to ask the Minister of Communications:

(1) (a) How many legal advisers were appointed permanently to his staff complement, (b) how are legal firms or practitioners selected and (c) how often is the list of legal practitioners revised;

(2) whether his (a) Ministry and (b) department from time to time obtain legal services from private legal firms or practitioners; if so,

(3) whether a specific panel of legal firms or practitioners were selected for his (a) Ministry and (b) department; if so, (i) which legal firms or practitioners were selected to serve on the panel for his (aa) Ministry and (bb) department and (ii) what are the names of these firms or practitioners;

(4) (a) what amounts were paid out to the respective firms in (i) 2008 and (ii) 2009 and (b) what was the total cost of outsourced legal services in (i) 2008 and (ii) 2009?

NW731E

REPLY:

(1) (a) There are three legal advisors on the staff complement of the Department.

(b) The Department makes use of the services of the State Attorney.

(2) (a) and (b) Please refer to above reply in sub-paragraph(b).

(3) (a) and (b) There is no specific panel of legal firms or practitioners selected for the Ministry and the Department.

(4) (a) Not applicable in view of reply to question 3.

(b) As stated under 1 above the Department makes use of the services of the state Attorney.

QUESTION NO. 611

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 5 MARCH 2010 (INTERNAL QUESTION PAPER NO. 6-2010)

"611. Ms S K Molao (COPE) to ask the Minister of Science and Technology:

(1)Whether her department has contributed to economic growth and socio-economic development in the past ten months through the programmes of institutions under its control; if not, why not; if so, what was the (a) nature and (b) extent of this contribution to socio-economic development?

NW733E

REPLY:

1. Yes, the Department of Science and Technology has contributed to economic growth and socio-economic development in the past 10 months through the programmes of institutions under its control. The (a) nature and (b) extent of this contribution are discussed below.

1.1. The Council for Scientific and Industrial Research (CSIR) and Stellenbosch University have partnered with the Department's Sustainable Livelihoods Unit in poverty reduction initiatives that include technology transfer, the establishment of infrastructure, and the provision of training. This is done through "proof of concept" projects for the socio-economic benefit of marginalised communities. These knowledge partners implement the transfer of technology, skills and infrastructure with funding from DST. Currently, the cohort of Sustainable Livelihoods initiatives includes essential oils and indigenous medicinal plants initiatives implemented by the CSIR, and aquaculture projects implemented by Stellenbosch University.

1.1.1. Infrastructure: Sustainable Livelihoods initiatives include procuring the infrastructure needed for specific projects, so technology infrastructure is transferred to remote areas, which contributes to rural development. For instance, the essential oils projects are based on a model of a 30 ha cultivation site with 30 000 to 40 000 plants per ha, and an industrial standard distillation factory with a small laboratory, an office and ablution facilities. Infrastructure on site amounts to a purchase value of between R1,3 million and R2,6 million. Seven such sites have been developed (two in Limpopo, two in the Northern Cape, one in Mpumalanga, one in the Eastern Cape and one in the Western Cape).

1.1.2. Proof of concept: Sustainable Livelihoods supports the pilot of mature technologies that can be applied to benefit poor communities. With the proof of concept, other funders or government departments are persuaded to expand on DST-funded initiatives. For instance, the Hondeklip Bay abalone grow-out pilot project that has successfully proved the technical, environmental and financial (commercial) feasibility of abalone production at Hondeklip Bay in the Northern Cape. The model developed from this pilot indicates that abalone can be commercially grown and there are plans to leverage the DST funding into a R48,8 million commercial node with a production capacity of 120 tonnes. The model is at an advanced stage, and there is great interest from the Northern Cape Provincial Government and private sector investors.

With the decline in capture fisheries (as opposed to farmed fisheries or aquaculture), Sustainable Livelihoods have been supporting proof of concept initiatives in the marine finfish space too. One example is a project to determine the technical and financial feasibility of yellowtail ranching (capture-based aquaculture) in False Bay. This pilot benefits traditional drag-net fishermen in the holding and conditioning of fish so that the market can be supplied as the demand arises. Currently, the catch of these small-scale fishermen is sold immediately, which means that the quality and quantity of yellowtail provided are inconsistent. Thus, capture-based aquaculture (ranching) of yellowtail would provide a more predictable, regular supply of higher quality meat, allowing for the expansion of both domestic and international (export) markets.

1.2. The Human Sciences Research Council (HSRC) is a statutory research council mandated to help address developmental challenges in South Africa, Africa and the rest of the world through its research. It is therefore committed to contributing to economic growth and socio-economic development. This contribution is made directly as well as indirectly, through the research, research dissemination, research collaboration and research capacity-building activities of the HSRC.

Direct contributions to economic growth and socio-economic developments made by means of large-scale, community-based research and intervention projects are usually made over several years.

Examples of large-scale, community-based projects under way during the past 10 months include the following:

o Randomised trial studies in Sweetwaters, KwaZulu-Natal, aimed at providing improved support to vulnerable communities affected by HIV/Aids.

o Large-scale intervention projects in the areas of health (HIV/Aids prevention) and sustainable water service delivery in the Eastern Cape.

o Demonstration projects initiated in the Tshwane metropolitan area in employment creation, service delivery and poverty reduction, among other things.

The following are examples of some of projects currently underway in KwaZulu-Natal and the Eastern Cape:

o Project Accept: A community-based trial aimed at reducing the prevalence of recent HIV infection by reducing HIV risk behaviour, HIV-related stigma and adverse life events, and influencing social norms regarding HIV testing, disclosure and discussions.

o Project Masihambisani ("Mentor Mothers"): A community-based intervention adding value to existing programmes of the Department of Health to prevent mother to child transmission.

o Going To Scale (from sibhekelela izingane zethu, which means "we look out for our children") is a place-randomised effectiveness trial in school-based communities, looking at ways in which child support grants can best benefit most vulnerable groups in society.

o Accelerating Sustainable Water Service Delivery: This is aimed at providing safe drinking water to remote rural communities that are not in line for immediate access to piped drinking water.

Indirect contributions to economic growth and socio-economic development are made by means of research-based recommendations that inform government planning and policy at various levels.

QUESTION NUMBER 613

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 05 March 2010

(INTERNAL QUESTION PAPER NUMBER 03)

MR PD Dexter (COPE) to ask the Minister of Mineral Resources:

613. Mr P D Dexter (Cope) to ask the Minister of Mineral Resources:

What (a) was the total production of rough diamonds in (i) carats and (ii) rand in (aa) 2008 and (bb) 2009, (b) was the volume of trade in rough diamonds by the State Diamond Trader in (i) 2008 and (ii) 2009 and (c) is the reason for the low levels of trade in diamonds by the State Diamond Trader for the period relative to the industry volumes?

(a) What (a) was the total production of rough diamonds in (i) carats and (ii) rand in (aa) 2008 and (bb) 2009,

(aa) The total number production of rough diamonds in 2008 was

(i) 12 901 019 carats

(ii) R9 271 800 818

(bb) The production of rough diamonds in 2009 was

(i) 6 115 624 carats and

(ii) R 7 455 754 677

(b) was the volume of trade in rough diamonds by the State Diamond Trader in (i) 2008 and (ii) 2009

(i) 142, 635 carats; R117, 209 265 for 2008/2009 year

(ii) 377, 736.11 carats; R258, 058,578 for first quarter- 3^rd quarter of 2009-10

(c) What is the reason for the low levels of trade in diamonds by the State Diamond Trader for the period relative to the industry volumes?

· The global economic crisis resulted in reduced demand for polished diamonds from the Stae Diamond Trader's clients;

· The State Diamond Trader finances restricted its ability to trade at higher levels post the core of recession.

· The challenges faced by the majority of the clients of the State Diamond Trader who are small businesses, these range from their financial ability to credible market access.

QUESTION NO.: 614

DATE OF PUBLICATION: 05 March 2010

Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether the Government will take any measures to facilitate the strategic alliance between SA Express and SA Airlink with SA Airways (SAA) to include other airlines to (a) help achieve equity, (b) promote competitiveness and (c) grow the industry; if not, why not; if so, what measures will her department take to facilitate the formation of such a strategic alliance? NW736E

REPLY

(a-c) Given that the South African domestic aviation industry is economically deregulated by virtue of the Air Services Act, 1990 (as amended), strategic alliances between airlines is a commercial matter.

QUESTION NO.: 615

DATE OF PUBLICATION: 05 March 2010

Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether she will make a statement with regard to the close strategic alliance forged between a private company (name furnished) and SA Airways (SAA)? NW737E

REPLY

The strategic alliance between the private company and SAA is primarily based on a franchise agreement. The agreement enables the private company the ability to use the SA-code, livery and shared services. This arrangement offers seamless bookings and combined fares to customers utilizing flights of both airlines as well as optimal use of different sized equipment to service passenger demand cost efficiently.

QUESTION NO. 616

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 05 March 2010

(INTERNAL QUESTION PAPER NO. 6)

Mrs H S Msweli (IFP) to ask the Minister of Health:

(1) Whether the newly established unit at Groote Schuur Hospital dedicated to women soccer fans will treat all women who are victims of abuse, whether they are soccer fans or not; if not, why not; if so,

(2) whether these units will remain in operation after the 2010 Soccer World Cup tournament; if not, why not; if so, what are the relevant details?

NW740E

REPLY:

According to the Western Cape Provincial Department of Health –

(1) The C24 Unit that has opened at Groote Schuur Hospital towards the end of last year, is a Gynaecology Emergency Unit. This Unit caters for the need of Gynaecology patients, e.g miscarriages, termination of pregnancies, as well as sexually abused females. Our primary responsibility is towards our indigent patients we will treat all appropriate female referral in this unit, as this is part of our Emergency Services. This unit will thus look at treating females during the world cup and after the world cup.

(2) As indicated the unit will remain in operation after the world cup.

QUESTION NUMBER: 617

DATE FOR PUBLICATION: 5 MARACH 2010

DATE REPLY SUBMITTED: 11 MARCH 2010

MR N SINGH (IFP) TO ASK THE MINISTER IN THE PRESIDENCY: PERFORMANCE MONITORING AND EVALUATION AS WELL AS ADMINISTRATION:

(1) Whether he has finalised (a) his staff compliment and (b) identified the areas that he will be focusing on; if not, why not; if so, what are the relevant details in each case;

(2) Whether he will make a statement on the matter?

NW741E

REPLY:

(1) (a) The department has finalised its structure after it was approved by the Department of Public Service and Administration. The department has advertised some of the priority positions in the structure and could not advertise the entire structure due to financial constraints.

(b) The department will monitor and evaluate the work of all departments based of the already announced performance outcomes. There are 12 outcomes informed by the 5 priorities including Human Settlement, Local Government and the Public Service agreed and approved by Cabinet. The outcomes have measurable outputs, selected activities of focus to achieve the outputs and targets.

The department will also focus on the coordinating structures of government, department with qualified reports, ensuring that there is efficiency in departments, payment of service providers within the prescribed period after the service has been rendered and ultimately ensuring that government achieves its objectives.

The department is also responsible for the Presidential Hotline and part of it mandate will be to ensure that government is responsive to people's need and complaints. The department will have to build systems that government can adhere to make sure that people's complaints and problems are attend to promptly.

(2) The issues covered will be elaborated in the budget vote speech.

QUESTION NUMBER: 618

DATE FOR PUBLICATION: 5 MARCH 2010

DATE REPLY SUBMITTED: 11 MARCH 2010

MR N SINGH (IFP) TO ASK THE MINISTER IN THE PRESIDENCY: PERFORMANCE MONITORING AND EVALUATION AND AS WELL AS ADMINISTRATION:

(1) Whether he and the Auditor-General have taken any measures to facilitate proper monitoring and evaluation of all departments; if not, why not, if so, what measures;

(2) Whether he will make a statement on the matter?

NW742E

REPLY:

(1) The Ministry has since its establishment had interactions with the Auditor-General to look at areas of cooperation. The ministry, in its interaction with the Auditor-General has agreed to share data and findings emanating from the course of doing their work. This data will be used to address challenges faced by departments in implementing their programmes and take remedial actions. The data from the Auditor-General will also be used to ensure that departments don't get qualified reports and have well functioning financial systems and reporting mechanisms. The Ministry will meet with the Auditor-General on a quarterly basis.

(2) The minister will not make a statement on the matter.

QUESTION NUMBER 619

DATE OF PUBLICATION: 5 MARCH 2010

Mr N Singh (IFP) to ask the Minister of Finance:

(1) Whether he and his department will be providing additional administrative support to municipalities that find themselves in distress in light of the Auditor-General's adverse findings; if not, why not; if so, what kind of support;

(2) whether he will make a statement on the matter?

NW743E

REPL Y:

(1) National Treasury, as part of national government, has a constitutional responsibility

to provide support to local government and currently provides support to municipalities in a variety of ways, including:

(a) Setting norms and standards for financial management through regulations;

(b) Providing guidance to municipalities in the form of circulars, guidelines and

other training materials;

financial management, including training on budgeting, supply chain management, asset management, accounting, reporting and a range of other relevant topics;

(d) Supporting municipalities through the MFMA Helpline and via direct enquiries

with advise on specific issues and questions as well as hosting regional workshops to address practical challenges;

(e) Providing funding directly to municipalities in the form of the Financial

Management Grant which is utilised to fund the employment of graduate

interns, who have tertiary knowledge in economics, accounting and auditing, within the municipal Budget and Treasury Office. The aim to strengthen their financial management capacity, currently there are over 700 graduates appointed in this programme.

(f) Funding the Siyenza Manje Programme run by the DBSA which deploys

financial management experts to municipalities that require specific assistance.

(g) Drawing up Financial Recovery Plans where municipalities find themselves in

financial distress. This is by request of a province or municipality.

While these various forms of support are made available/ offered to municipalities, they

are frequently not utilised effectively by the poorly performing municipalities.

(2) The above comments highlight some of the initiatives currently underway. We are also working closely with our Provincial counterparts to assist in implementing the financial reforms in municipalities. Further information is available on the National Treasury website and contained in Strategic Plans and Budget documentation of the various departments.

During the current fiscal year, further efforts will be made to coordinate NT efforts and programmes with those of COGTA and provincial treasuries.

QUESTION 620

FOR WRITTEN REPLY

Date of publication on internal question paper: 5March 2010

Internal question paper no: 4

Mr P F Smith (IFP) to ask the Minister of Social Development:

How much was spend by (a) the national government and (b) each of the nine provincial governments, on food parcels in the 12 months preceding the 2009 national/provincial elections? NW744E

REPLY:

(a) An amount of R124 million was allocated for social relief of distress in the 2008/09 financial year. However, this was supplemented with an additional R500 million in November 2008. The additional allocation was provided by government to counteract the negative impact of the rapidly escalating food prices on the poorest and most vulnerable members of the community. Studies had shown that approximately 24% of South Africans live in households with an income of less that R800 per month. In considering options to address this challenge, 3 policy options were considered, namely:

* To increase the value of social grants to maintain their purchasing power. This was considered, as the value of grants had increased by approximately 12% while the cost of basic food (eg. Bread flower and mealie meel) had increased by 35,1% over the period March 2006 to March 2008;

* Expanding the social relief of distress grant for those not receiving social grants; or

* providing a supplementary grant to all poor households.

Of the options considered, the additional allocation for social relief of distress was implemented, as this was an option which could be delivered within a relatively short space of time.

The allocation of the R500 million was spread across all provinces, informed by the poverty indices per province. In terms of the allocation, the largest allocation went to KwaZulu-Natal, with both Eastern Cape and Limpopo receiving significant allocations. The October Household Survey of 2007 was used to identify the poorest households per province, and the allocation of funds was based on these indicators. The indicators per province are as follows:

Eastern Cape 12,69%

Free State 6,4%

Gauteng 25,4%

KwaZulu-Natal 17,87%

Limpopo 9,72%

Mpumalanga 7,52%

Northern Cape 2,12%

North West 7,29%

Western Cape 10,95%

A total of R 658,941,044 was spent by the national government on Social Relief of Distress (SRD) for the period 1 April 2008- 31 March 2009. The total amount of SRD was spent on food parcels, school uniforms, vouchers and blankets. The funds were disbursed by the regional offices of the South African Social Security Agency (SASSA).

The funds were spent in accordance with the criteria as set out in the Social Assistance Act, 2004. This ensured that an application form was completed for each beneficiary of the assistance, and social relief of distress went to individuals who were not in receipt of another social grant, apart from the school uniforms for children which were provided to children who were already in receipt in a child support grant. This deviation was intentionally implemented to provide some relief to families of these vulnerable children.

(b)The attached Annexure A provides a provincial / regional breakdown of the 658,941,044 spent on social relief of distress for the period 1 April 2008 to 31 March 2009.

ANNEXURE A

SRD EXPENDITURE FOR THE PERIOD 1 APRIL 2008- 31 MARCH 2009

REGION	SCHOOL UNIFORMS (R)	FOOD VOUCHERS (R)	FOOD PARCELS (R)	BLANKETS (R)	CASH (R)	TOTAL EXPENDITURE
Eastern Cape	27,600,000	98,005,462	0	0	0	125,605,462
Free State	1,294,380	0	50,484,146	0	0	51,778,526
Gauteng	0	91,999,373	0	0	6,749,923	98,749,296
KwaZulu-Natal	41,956,830	103,482,623	0	0	0	145,439,453
Limpopo	1,756,050	0	97,500,402	0	0	99,256,452
Mpumalanga	2,329,200	347,996	42,998,000	410,900	0	46,086,096
North West	1,654,620	0	24,168,663	0	0	25,823,283
Northern Cape	2,160,000	18,482,527	0	0	2,786,972	23,429,499
Western Cape	0	0	0	0	42,772,977	42,772,977
TOTAL	78,751,080	312,317,981	215,151,211	410,900	52,309,872	658,941,044

NB: Limpopo, North West and Free State provided cash for the beneficiaries to purchase school uniforms. The amount is included under that for the school uniforms.

QUESTION 621

QUESTION FOR WRITTEN REPLY

621. Mr PF Smith (IFP) to ask the Minister of energy

Whether she has found that the national electrification programme trend from 1 January 2002 to the present has seen a steady decline in the number of connections made each year; if not, what is the position in this regard; if so, what are the relevant details?

RESPONSE

Yes, we are aware of the decline in the number of connection made each year and the details are as follows.

STATUS OF ELECTRIFICATION SINCE 2002/03

As can be seen on the graph below, actual electrification connection figures have been declining since the 2002/03 financial year. This is due to the fact that implementation of electrification was moving towards rural areas and the cost of implementing was increasing due to the decrease in densities and the mountainous terrain encountered , thereby resulting in a reduced number of connections achieved with the available funds.

Between the 1990 – 2002 there was available network capacity on Sub-transmission lines and distribution Substations in the country, as electrification could only be done at the areas nearer to the available infrastructure.

From the 2005/06 financial year, it became evident that there is a need for the development of new and upgrading of existing infrastructure in order to extend electrification to rural and deep rural areas.

INVESTMENT IN BULK INFRASTRUCTURE

During the 2006/07 financial year, the Department started to allocate for funding the development and upgrading of bulk infrastructure, especially in rural areas where long sub-transmission lines are required to extend the network.

Below is a graph indicating cumulatively the amount of funding provided to all the provinces since the 2006/07 financial year. To date, more than R 1.8 billion has been spent on both the development of new bulk infrastructure and upgrading of existing infrastructure. Although investment in bulk infrastructure has compromised electrification targets, the resulting output will yield an increasing number of connections and a decline in future allocations of bulk infrastructure.

QUESTION 622

QUESTION FOR WRITTEN REPLY

622. Mr P F Smith (IFP) to ask the Minister of Energy:

(a) How much electricity is lost to Eskom and/or municipalities as a result of theft, (b) what is the rand value of this loss and (c) what is the extent of this loss to Eskom's and municipalities' finances? NW746E

Response

a.) In 2008/9 financial year Eskom sales amounted to 214 850 GWh. The total losses (technical and non-technical) amounted to 11 706 GWh. The assumption is that this figure includes 33.3% to 50% of non technical losses in the form of theft. That implies theft losses range from 4 100 GWh to 5 850 GWh.

b.) Assuming that most of the losses take place amongst residential customers who buy electricity at an average of 62c/kWh then the financial implications are from R2.5 bn to R3.6 bn per annum. It is estimated that the same amount of energy is lost by the municipalities.

However, if these illegal connections were legal, they would have qualified for Free Basic Electricity. Should each connection be using the average of 180 kWh per month, it means the Free Basic Electricity would have reduced the losses to around 72% of the above values, and thus the loss would be reduced to R1.8 bn to R2.6 bn per year. With Eskom and Municipal supplies combined, and taking into account the impact of FBE, the financial value amounts to R4.4bn of lost revenue due to electricity theft.

c.) This would be more than 5% of turnover, indicating the seriousness of the problem.

QUESTION NO.: 623

DATE OF PUBLICATION: 05 March 2010

Mr M G Oriani-Ambrosini (IFP) to ask the Minister of Public Enterprises:

(1) Whether she invited foreign-owned electricity companies to bid at their own cost for the construction and operation of Eskom's intended new electricity plants; if not, why not; if so, what are the relevant details;

(2) whether she also invited a major foreign electricity generator (name furnished) which had indicated its intention to build and operate such an electrical plant to bid for the construction and operation of Eskom's intended new plants; if so, why;

(3) whether she will make a statement on the matter? NW747E

REPLY

(1) The Integrated Resource Plan (IRP) for Electricity developed by the Department of Energy (DoE) directs the country's future electricity generation capacity needs and the mix of energy sources to be utilised to provide the necessary security of supply. A 5 year IRP was published by the DoE in December 2009 and work is currently underway to finalise a revision of the IRP extended to 20 years (IRP2) through a comprehensive stakeholder engagement process. The allocation of future new electricity generation capacity construction between Eskom and the private sector will be provided by the Minister of Energy once the IRP2 is finalised. Eskom is a utility and builds, owns and operates all of its own power stations.

(2) The contracts for the construction of Eskom's new power stations were awarded through a competitive bidding process, through which domestic as well as international suppliers were invited to apply.

In addition to the new power stations that Eskom is building, the Integrated Resource Plan (IRP) by the Department of Energy sets out country's electricity generating capacity requirements in the long term as well as the responsible parties (Eskom or Private) for the construction of capacity into the future. A revision of the IRP published in December 2009 is expected around July 2010.

Government is also in the process of putting a "non-conflicted buyer" for private sector power in place to facilitate the entry of Independent Power Producers into the South African Power Generation sector.

(3) It is not necessary for a statement to be made on this matter.

QUESTION NO.: 625

DATE OF PUBLICATION: 05 March 2010

Mr M G Oriani-Ambrosini (IFP) to ask the Minister of Public Enterprises:

Whether she has been informed of his correspondence to her office; if not, what is the position in this regard; if so, why she failed to respond? NW749E

REPLY

Yes, I have been informed of the Member's correspondence to my office. Consequently, my response thereto dated 08 December 2009, was sent to the Member's office via facsimile. Please find the letter with the attachments and a copy of the fax result sheet confirming that the letter was sent.

2010-03-26

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